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HomeMy WebLinkAbout1154 10-11-1994ORDINANCE NO. 1154 AN ORDINANCE REVISING THE RATES OF LONE STAR GAS COMPANY IN THE CITY OF EULESS, TEXAS; PROVIDING FOR CONDITIONS AND REPEAL OF CONFLICTING ORDINANCES, PROVIDING A SEVERABILITY CLAUSE AND EFFECTIVE DATE WHEREAS, On May 11, 1994, Lone Star Gas Company ( 'LSGC') filed with the City of Euless ( "CM") a request for an increase in gas utility rates to be charged within CITY in the amount of $2,011,101 per annum within the Mid- Cities Distribution System, and WHEREAS, CITY. with Res. 94 -853 suspended the effective date of such proposed increase for a period of time necessary and authorized by law, including time for the continuation of a hearing in progress pursuant to Section 5.08(d) of the Gas Utility Regulatory Act (GURA), or alternatively, pursuant to its authority under Section 5.07 of GURA, and having considered the same after reasonable notice and public hearing, and findings as to the unreasonableness of the current rates, is of the opinion and finds that the rates of LSGC should be adjusted; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF EULESS, TEXAS; I. That the rates, tariffs and charges for LSGC for gas service sold within CITY be revised to increase $96,351 annually, which is a component of the Mid- Cities Distribution System annual revenue increase of $675,635. Such schedules of rates, as are approved in accordance herewith, are those under which said LSGC shall be authorized to render gas service and to collect charges from its customers for the sale of gas service and energy within the corporate limits of CITY until such time as said Rate Schedules may be changed, modified, amended or withdrawn, with the approval of the City Council. This ordinance also approves the elimination of the Rate Schedule for Public Free Schools - N and the placement of these customers receiving said rate on the commercial rate set forth in the schedules and tariffs filed with CITY. ORDINANCE NO. 1154, Page 2 of 3 IL The rates approved hereby fix the overall revenues of LSGC at a level which will permit LSGC a reasonable opportunity to earn a reasonable return on both its original and adjusted value invested capital used and useful in rendering service to the public over and above LSGC's reasonable and necessary operating expenses. The rates approved hereby are just and reasonable M. The rates approved hereby shall be effective with the gas bills rendered on and after October 20, 1994, and enforced as of the date hereof, and shall be charged and observed thereafter until revised according to law. "T That LSGC shall file with CITY within (10) days hereof a revised Schedule of Rates and Tariffs setting forth those rates, tariffs, and charges based upon such increase in total operating revenues as prescribed herein. The rate design implemented by such schedules and tariffs shall be in accordance with Schedule 3, attached hereto. Such Schedule of Rates and Tariffs may be modified or amended by the City Council within ten (10) days from the date of filing with CITY, otherwise same shall be considered approved as filed. V. LSGC shall reimburse CITY its costs for consultants and shall also reimburse CITY its reasonable costs for participation in any appeal of this rate case. VI. Any LSGC request for modification of existing tariffs, rates or schedules not specifically addressed herein, is denied. However, all adjustment clauses, except the gas cost adjustment clause and the adjustment clause for changes in municipal franchise fees, are specifically denied V11. That the action of the City Council enacting this ordinance constitutes, on the date of its final passage, a final determination of rates for LSGC with CITY in accordance with the Gas Utility Regulatory Act_ ORDINANCE NO. 1154, Page 3 of 3 V Ill. Severability Clause That it is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared invalid or unconstitutional by the valid judgement or decree of any court of competent jurisdiction, such invalidity or unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without incorporation in this ordinance of any such invalid or unconstitutional phrase, clause, sentence, paragraph or section X. Saving Clause Nothing contained in this ordinance shall be construed now or hereafter as limiting or modifying, in any manner, the right and power of the City of Euless under the law to regulate the rates and charges of LSGC. X1. Effective Date. This ordinance shall be in full force and effect from and after its passage and publication as provided by the Euless City Charter and the laws of the State of Texas. PRESENTED AND GIVEN FIRST AND FINAL READING and approved at a regular meeting of the Euless City Council on the 11th day of October 1994; by a vote of 7 ayes, 0 nays and 0 abstentions. APPROVED: Mary Lib Saleh, Mayor ATTEST: Susan Crim, C 1C, City Secretary Attachment A LONE STAR GAS COMPANY REVENUE ADJUSTMENT CITY BASE RATE REVENUE PROPOSED INCREASE/ (DECREASE) PRESENT LSGC $ SETTLEMENT i Euless PROPOSED $96,351 9.47% TOTAL SYSTEM, $15,397,097 $17,4081971 $675,635 4.39 / Euless $1,017,8111 $1,195,571 $177,7601 17.46% TOTALSYSTEMI — $15,397,0971 $17,408,197 $2,011,101! 13.06% CITY BASE RATE REVENUE SETTLEMENT INCREASE/ i DECREASEI1 PRESENT LSGC $ % SETTLEMENT i Euless $1,017,811 $1,195,571 $96,351 9.47% TOTAL SYSTEM, $15,397,097 $17,4081971 $675,635 4.39 / ATTACHMENT B LONE STAR GAS COMPANY EULESS,TEXAS RESIDENTIAL BILL COMPARISON SETTLEMENT DESIGN AT $96,351 INCREASE EXISTING SETTLEMENT CUSTOMER CHARGE $5.00 $5.00 COMMODITY CHARGE $5.1861 $5.3031 MONTHLY BILL AT BILL AT BILL AT EXISTING /SETTLEMENT CONSUMPTION PRESENT PROPOSED SETTLEMENT DIFFERENCE IN MCF RATE* RATE RATE $ % 0 $5.00 $8.00 $5.00 $0.00 0.00% 1 9.94 13.33 10.30 $0.36 3.62% 2 14.87 18.66 15.61 $0.74 4.98% 3 19.81 23.99 20.91 $1.10 5.55% 4 24.74 29.32 26.21 $1.47 5.94% 5 29.68 34.65 31.52 $1.84 6.20% 6 34.61 39.98 36.82 $2.21 6.39% 7 41.30 45.32 42.13 $0.83 2.01% 8 46.48 50.65 47.43 $0.95 2.04% 9 51.67 55.98 52.73 $1.06 2.05% 10 56.85 61.31 58.04 $1.19 2.09% 15 82.78 87.96 84.55 $1.77 2.14% 20 108.70 114.62 111.07 $2.37 2.18% 25 134.63 141.27 137.59 $2.96 2.20% 50 264.26 274.54 270.18 $5.92 2.24% 75 393.89 407.81 402.77 $8.88 2.25% 100 523.52 541.08 535.36 $11.84 2.26% * BILL COMPARISON USES SUMMER RATE FOR 0 - 6 MCF AND WINTER RATE FOR 7 - 100 MCF. CUSTOMER CHARGE COMMODITY CHARGE MONTHLY BILL AT CONSUMPTIC PRESENT IN MCF RATE ATTACHMENT C LONE STAR GAS COMPANY EULESS,TEXAS COMMERCIAL BILL COMPARISON SETTLEMENT DESIGN AT $96,351 INCREASE WINTER RATE EXISTING SETTLEMENT $8.00 $12.00 $5.1861 FIRST 20 $5.4695 NEXT 30 $5.1695 OVER 50 $5.0695 BILL AT BILL AT PROPOSED SETTLEMENT RATE RATE EXISTING/SETTLEMENT DIFFERENCE $ % 0 $8.00 $14.00 $12.00 $4.00 50.00% 20 111.70 117.65 121.39 $9.69 8.68% 30 163.55 166.48 173.09 $9.54 5.83% 50 267.25 264.13 276.48 $9.23 3.45% 100 526.52 500.77 529.95 $3.43 0.65% 200 1,045.04 974.04 1,036.90 ($8.14) -0.78% 300 1,563.56 1,447.31 1,548.85 ($14.71) -0.94% 400 2,082.08 1,920.58 2,050.80 ($31.28) - 1.50% 500 2,600.60 2,393.85 2,557.75 ($42.85) - 1.65% 600 3,119.12 2,867.12 3,084.70 ($34.42) -1.10% 700 3,637.64 3,340.39 3,571.65 ($65.99) -1.81% 800 4,156.16 3,813.66 4,078.60 ($77.56) - 1.87% 900 4,674.68 4,286.93 4,585.55 ($89.13) -1.91% 1,000 5,193.20 4,760.20 5,092.50 ($100.70) -1.94%