R-81-409 - 9/10/1981LONE STAR GAS COMPANY
Residential Bill Comparison
Billing Amount for 8 Mcf*
Test Year Month Distribution 8 Mcf
Ending Passed System Bill % Passed
12/31/80 Round Rock $29.33
(Proposed) $33.37
(Recommended) $32.93 (90% of request)
12/31/80 11/81 Georgetown $32.93 (62% of request)
6/30/80 3/81 Taylor $31.56 (90% of request)
6/30/81 2/81 Pflugerville $32.08 (100% of request)
6/30/80 8/81 Manor $35.91 (100% of request)
Residential Commercial
$4.50 Minimum $7.50
$3.5542 Winter $3.5542
$3.3042 Summer $3.3042
* Based on a city gate rate of $2.4624
All rates shown are within 10% of each other.
Georgetown can expect an additional rate increase request in March.
LONE STAR COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
RESIDENTIAL BILL COMPARISON*
Monthly Bill At Bill At
Consumption Present Proposed
Mcf Rate Rate
0 $ 3.78 $ 4.50
1 6.72 7.86
2 9.66 11.22
3 12.61 14.58
4 15.55 17.93
5 18.49 21.29
6 21.43 24.65
* *
7 26.13 29.76
8 29.33 33.37
9 32.52 36.98
10 35.71 40.58
15 51.67 58.63
20 67.64 76.67
25 83.60 94.71
50 163.42 184.92
75 243.24 275.13
100 323.06 365.34
T
Amount
Of
Increase
$ .72
1.14
1.56
1.97
2.38
2.80
3.22
3.63
4.04
4.46
4.87
6.96
9.03
11.11
21.50
31.89
42.28
*Based on City Gate Rate Of $2.4624 per Mcf.
* *Bill Comparison Uses Summer Rate For - 11 -6 MCfland Winter Rate fo�x, -100 Md.)
STATEMENT OF INTENT TO CHANGE RESIDENTIAL AND COMMERCIAL RATES
TO THE CITY OF ROUND ROCK:
COMES NOW Lone Star Gas Company, a Division of ENSERCH CORPORATION
(Lone Star), a public utility under Article 6050 et. seq. V.A.C.S. and Article
1446c V.A.C.S. (Supp. 1976) and files this its Statement of Intent to Change
Residential and Commercial Rates in the City of Round Rock, Texas, under the
provisions of Section 43(a) of Article 1446c V.A.C.S. (Supp. 1976) and Article
6050 et. seq. V.A.C.S.
I.
Lone Star proposes to change its rates, and the details of the pro-
posed changes in rates are as follows:
1. Name of Utility - Lone Star Gas Company
2. Description of Area Affected - City of Round Rock, Texas
3. Proposed Tariffs & Schedules:
A. The following rates are the maximum applicable to residential and
commercial consumers per meter per month or for any part of a month
for which gas service is available at the same location. Summer rates
shall be applicable between the meter reading dates in May and October.
Winter rates shall be applicable at all other times.
Residential: Winter Summer
Customer Charge $4.5000 $4.5000
All Consumption @ 3.6084 Per Mcf 3.3584 Per Mcf
3.55 /D. 3.30
If the service period is less than 28 days, the customer charge
is $.1607 times the number of days service.
Commercial: Winter Summer
Customer Charge $7.5000 $7.5000
All Consumption @ 3.6084 Per Mcf 3.3584 Per Mcf
5 , 1 2.
If the service period is less than 28 days, the customer charge
is $.2679 times the number of days service.
Bills are due and payable when rendered and must be paid within ten
days from monthly billing date.
B. Gas Cost Adjustment:
Each monthly bill at the above rates shall be adjusted for gas cost as
follows:
(1) The city gate rate increase or decrease applicable to current
billing month residential and commercial sales shall be esti-
mated to the nearest $0.0001 per Mcf based upon:
(a) A volume factor of 1.0000 determined in establishing the
above rates for the distribution system as the ratio of
adjusted purchased volumes divided by adjusted sales volumes.
(b) The city gate rate estimated to be applicable to vol-
umes purchased during the current calendar month, ex-
pressed to the nearest $0.0001 per Mcf (shown below
as "Re ").
(c) The base city gate rate of $2.4624 per Mcf.
(2) Correction of the estimated adjustment determined by Item 3B (1)
above shall be included as part of the adjustment for the second
following billing month. The correcting factor (shown below as
"C ") shall be expressed to the nearest $0.0001 per Mcf based upon:
(a) The corrected adjustment amount based upon the actual city
gate rate, less
(b)
(c)
D. Rate Case Expense:
The estimated adjustment amount billed under Item 3B (1)
above, divided by
Distribution system residential and commercial sales Mcf
recorded on the Company's books during the prior year for
the month that the correction is included as part of the
adjustment.
(3) The adjustment determined by Item 3B (1) and Item 3B (2) above shall
be multiplied by a tax factor of 1.04020 to include street and alley
rental and state occupation tax due to increasing Company revenues
under this gas cost adjustment provision.
In summary, the gas cost adjustment (GCA) shall be determined to the near-
est $0.0001 per Mcf by Item 3B (1), Item 3B (2), and Item 3B (3) as follows:
GCA = [Item 3B (1) + Item 3B (2)] X Item 3B (3)
GCA = [(1.0000) (Re - $2.4624) + C] X 1.04020
C. Tax Adjustment:
The tax adjustment shall be an amount equivalent to the proportionate part
of any new tax, or increased tax, or any other governmental imposition,
rental, fee or charge (except state, county, city and special district ad
valorem taxes and taxes on net income) levied, assessed or imposed subsequent
to January 1, 1981, upon or allocable to the Company's distribution opera-
tions, by any new or amended law, ordinance or contract.
Rate case expense is not included in the calculation of proposed rates. If
rate case expense is incurred in this current case, it is the intention of
Lone Star Gas Company to recover the current and any unrecovered prior rate
case expense through a surcharge designed for a six -month nominal recovery
period. The surcharge per Mcf would be calculated by dividing the rate case
expense to be recovered by one -half of the adjusted annual sales volume to
residential and commercial customers. If there is no current rate case expense,
the Company will forego recovery of any unamortized prior rate case expense.
When a surcharge is applicable, monthly status reports will be provided to
account for the collections.
E. Schedule of Service Charges:
The schedule of charges for replacing yard lines is to be eliminated from
the schedule of service charges.
4. Statement of Changes:
Monthly bill for Residential Customers using 8 Mcf, (City Gate Rate at
Present Rate
Winter Summer Winter Summer
$29.33
$58.15
$27.31 $33.37
Present Rate
Winter Summer Winter Summer
$54.11 $65.23
6. Class of Customers Affected:
Residential and Commercial
7. Number of Customers Affected:
2,598
8. Effective Date of Proposed Change:
Proposed Rate Increase
Winter Summer
$31.37 $ 4.04 $ 4.06
Monthly bill for Commercial Customers using 16 Mcf, (City Gate Rate at $2.4624):
Proposed Rate Increase
Winter Summer
$61.23 $ 7.08 $ 7.12
5. Effect of Proposed Changes:
Estimated total increase in annual revenue is $94,213 or 13.79%, based upon
Current Annual Revenue from Residential and Commercial Customers (Test Year
ended 12 31 80) of $683,087 and Estimated Annual Revenue under the proposed
rates of $777,300.
OCT 5 1981
9. The proposed change will not result in a major change as that term is
defined in TEX.REV.CIV.STAT.ANN. art. 1446c S43(b) (Supp. 1976).
II.
Publication of required notice containing the information relative
to this Statement of Intent shall be made in accordance with applicable statutes
and rules.
THEREFORE, Lone Star Gas Company requests the City allow such new rates
to become applicable for the City of Round Rock by operation of law or by ordinance
granting it the authority to charge such rates.
Respectfully submitted,
LONE STAR GAS COMPANY, a Division
of ENSERCH CORPORATION
By .' ,. AV V1 aft
t
Date Filed
AUG 2 7 1981
PROCEEDINGS BEFORE THE CITY COUNCIL OF THE
CITY OF ROUND ROCK , TEXAS
• APPLICATION OF LONE STAR GAS
COMPANY FOR AN INCREASE IN RATES
NOTION FOR TEMPORARY RATE RELIEF
TO THE HONORABLE CITY COUNCIL OF THE CITY OF ROUND•ROCK, TEXAS
NOW COMES Lone Star Gas Company, a Division of ENSERCH CORPORATION, a
Texas corporation, and would show the Honorable City Council of the City of
Round Rock , Texas, the following:
1. On the 27th day of August , 1981 , Lone Star Gas Company,
a Division of ENSERCH CORPORATION, filed a Statement of Intent to change the
residential and commercial rates in the City of Round Rock , Texas. Said
rates are proposed to become effective October 5, 1981
2. Section 43(d) of Article 1446c (Public Utility Regulatory Act of
1975) provides that a regulatory authority, such as the City Council, pending a
hearing and decision, may suspend the operation of the Statement of Intent for
a period not to exceed 120 days beyond the date on which the schedule of rates
would otherwise go into effect. If the regulatory authority finds that a longer
time is needed for a final determination, the regulatory authority may further
extend the period of suspension for an additional 30 days.
3. Section 43(d) further provides that the regulatory authority at
its discretion may fix temporary rates for any period of suspension. During the
period of suspension by a regulatory authority, the rates in force when the
Statement of Intent was filed shall continue in force unless the regulatory
authority establishes temporary rates.
4. If this regulatory authority finds it necessary to suspend the
Statement of Intent previously filed with it, Lone Star Gas Company, a Division
of ENSERCH CORPORATION, respectfully requests that the regulatory authority
establish temporary rates for the period of suspension, which will operate in
lieu of the present rates now in force until such time as final rates are
determined.
5. By this request, Lone Star Gas Company, a Division of ENSERCH
CORPORATION, does not waive its rights under Section 43(e) of Article 1446c to
put changed rates not to exceed the proposed rates into effect under bond if
the regulatory authority fails to make its final determination of rates within
90 days from the date that the proposed change otherwise would have gone into
effect.
6. Lone Star Gas Company, a Division of ENSERCH CORPORATION, sug-
gests that the proper rates to be established as temporary rates are the rates
proposed by Lone Star Gas Company in its. Statement of Intent. If upon a final
determination of the rates to be charged for residential and commercial service
in the City of Round Rock , Texas, fair and reasonable rates are found by
the regulatory authority to be less than the temporary rates, provision can be
made for a credit to the residential and commercial customers for any revenue
collected during the period of temporary rates that is in excess of that which
would have been collected under the rates found to be reasonable.
WHEREFORE, PREMISES CONSIDERED, Lone Star Gas Company, a Division of
ENSERCH CORPORATION, respectfully requests that this Honorable City Council
grant temporary rates as prayed for herein, if the Council suspends the State-
ment of Intent previously filed with it. Fair and reasonable rates on a tem-
porary as well as permanent basis are in the interest of the consuming public
and the utility.
Respectfully submitted,
Lone Star Gas Company, a Division of
ENSERCH CORPORATION
By
R. 2i-A
PROCEEDINGS BEFORE THE CITY COUNCIL OF THE
CITY OF ROUND ROCK , TEXAS
APPLICATION OF LONE STAR GAS
COMPANY FOR AN INCREASE IN RATES
NOTION FOR TEMPORARY RATE RELIEF
TO THE HONORABLE CITY COUNCIL OF THE CITY OF ROUND'ROCK. TEXAS
NOW COMES Lone Star Gas Company, a Division of ENSERCH CORPORATION, a
Texas corporation, and would show the Honorable City Council of the City of
Round Rock , Texas, the following:
1. On the 27th day of August , 19p1 , Lone Star Gas Company,
a Division of ENSERCH CORPORATION, filed a Statement of Intent to change the
residential and commercial rates in the City of Round Rock , Texas. Said
rates are proposed to become effective October 5 1981
2. Section 43(d) of Article 1446c (Public Utility Regulatory Act of
1975) provides that a regulatory authority, such as the City Council, pending a
hearing and decision, may suspend the operation of the Statement of Intent for
a period not to exceed 120 days beyond the date on which the schedule of rates
would otherwise go into effect. If the regulatory authority finds that a longer
time is needed for a final determination, the regulatory authority may further
extend the period of suspension for an additional 30 days.
3. Section 43(d) further provides that the regulatory authority at
its discretion may fix temporary rates for any period of suspension. During the
period of suspension by a regulatory authority, the rates in force when the
Statement of Intent was filed shall continue in force unless the regulatory
authority establishes temporary rates.
4. If this regulatory authority finds it necessary to suspend the
Statement of Intent previously filed with it, Lone Star Gas Company, a Division
of ENSERCH CORPORATION, respectfully requests that the regulatory authority
establish temporary rates for the period of suspension, which will operate in
lieu of the present rates now in force until such time as final rates are
determined.
5. By this request, Lone Star Gas Company, a Division of ENSERCH
CORPORATION, does not waive its rights under Section 43(e) of Article 1446c to
put changed rates not to exceed the proposed rates into effect under bond if
the regulatory authority fails to make its final determination of rates within
90 days from the date that the proposed change otherwise would have gone into
effect.
6. Lone Star Gas Company, a Division of ENSERCH CORPORATION, sug-
gests that the proper rates to be established as temporary rates are the rates
proposed by Lone Star Gas Company in its Statement of Intent. If upon a final
determination of the rates to be charged for residential and commercial service
in the City of Round Rock , Texas, fair and reasonable rates are found by
the regulatory authority to be less than the temporary rates, provision can be
made for a credit to the residential and commercial customers for any revenue
collected during the period of temporary rates that is in excess of that which
would have been collected under the rates found to be reasonable.
WHEREFORE, PREMISES CONSIDERED,-Lone Star Gas Company, a Division of
ENSERCH CORPORATION, respectfully requests that this Honorable City Council
grant temporary rates as prayed for herein, if the Council suspends the State-
ment of Intent previously filed with it. Fair and reasonable rates on a tem-
porary as well as permanent basis are in the interest of the consuming public
and the utility.
Respectfully submitted,
Lone Star Gas Company, a Division of
ENSERCH CORPORATION
By fit
THE STATE OF TEXAS
COUNTY OF DALLAS
BOND FOR INCREASED RATES DURING SUSPENSION
Z
KNOW ALL MEN BY THESE PRESENTS:
THAT WE, Lone Star Gas Company, a Division of ENSERCH CORPORATION, of
Dallas, County of Dallas, in the State of Texas, as Principal, and
(see attachment) , as Surety, are each held and firmly bound jointly and
severally unto the City of Round Rock , Texas, in the sum of $16,000.00
for the use and benefit of any party who does not receive a credit against his
future gas bill as provided by Section 43(e) of Article 1446c, Revised Civil Statutes
of Texas, for which payment we bind ourselves, our successors and assigns.
The Principal proposes to put into effect a change of rates and is
required by the provisions of Section 43(e) of Article 1446c, Revised Civil Statutes
of Texas, to furnish a bond on the terms and conditions set forth in such statute.
The condition of this obligation is such that if the Principal faithfully conforms
to and abides by the provisions of Section 43(e) of Article 1446c, Revised Civil
Statutes, and if the Principal faithfully credits the amounts collected by Principal
from residential and commercial customers during the suspension period in excess of
the rates finally ordered, plus interest of nine percent (9 %) per annum, then this
obligation shall be null and void; otherwise, it shall be in full force and effect.
This bond is intended to comply with the requirements of Section 43(e)
of Article 1446c, Revised Civil Statutes of Texas, and in accordance with the pro-
visions and requirements of that statute, it is expressly provided that:
Credits will be applied against future bills for the amount collected
during the period of suspension in excess of the rates finally ordered, plus inter-
est. Any right to a credit shall be limited to that period of time during which
the Principal collected increased rates pursuant to Section 43(e) of Article 1446c,
Revised Civil Statutes of Texas.
IN WITNESS WHEREOF, we affix our signatures on this day of
, 19
LONE STAR GAS COMPANY, A
DIVISION OF ENSERCH CORPORATION
By
(see attachment)
Approved this day of
, 19 (Surety)
By By
City of Round Rock, Texas
ATTACHMENT TO BOND FORM
Lone Star Gas Company proposes to use as surety, either Insurance
Company of the State of Pennsylvania , Philadelphia, Pennsylvania,
American Home Assurance Company of New York, New York or National
Union Fire Insurance Company of Pittsburg, Pennsylvania. It is re-
quested that the City approve all sureties in order that Lone Star
may select any one it become necessary to implement the bond.
THE STATE OF TEXAS
COUNTY OF DALLAS
Approved this
By
City of Round Rock, Texas
BOND FOR INCREASED RATES DURING SUSPENSION
X
X
KNOW ALL MEN BY THESE PRESENTS: -
THAT WE, Lone Star Gas Company, a Division of ENSERCH CORPORATION, of
Dallas, County of Dallas, in the State of Texas, as Principal, and
(see attachment) , as Surety, are each held and firmly bound jointly and
severally unto the City of Round Rock , Texas, in the sum of $16,000.00
for the use and benefit of any party who does not receive a credit against his
future gas bill as provided by Section 43(e) of Article 1446c, Revised Civil Statutes
of Texas, for which payment we bind ourselves, our successors and assigns.
The Principal proposes to put into effect a change of rates and is
required by the provisions of Section 43(e) of Article 1446c, Revised Civil Statutes
of Texas, to furnish a bond on the terms and conditions set forth in such statute.
The condition of this obligation is such that if the Principal faithfully conforms
to and abides by the provisions of Section 43(e) of Article 1446c, Revised Civil
Statutes, and if the Principal faithfully credits the amounts collected by Principal
from residential and commercial customers during the suspension period in excess of
the rates finally ordered, plus interest of nine percent (9%) per annum, then this
obligation shall be null and void; otherwise, it shall be in full force and effect.
This bond is intended to comply with the requirements of Section 43(e)
of Article 1446c, Revised Civil Statutes of Texas, and in accordance with the pro-
visions and requirements of that statute, it is expressly provided that:
Credits will be applied against future bills for the amount collected
during the period of suspension in excess of the rates finally ordered, plus inter-
est. Any right to a credit shall be limited to that period of time during which
the Principal collected increased rates pursuant to Section 43(e) of Article 1446c,
Revised Civil Statutes of Texas.
•
IN WITNESS WHEREOF, we affix our signatures on this day of
, 19
LONE STAR GAS COMPANY, A
DIVISION OF ENSERCH CORPORATION
By
day of (see attachment)
, 19 (Surety)
By
ATTACHMENT TO BOND FORM
Lone Star Gas Company proposes to use as surety, either Insurance
Company of the State of Pennsylvania , Philadelphia, Pennsylvania,
American Home Assurance Company of New York, New York or National
Union Fire Insurance Company of Pittsburg, Pennsylvania. It is re-
quested that the City approve all sureties in order that Lone Star
may select any one it become necessary to implement the bond.
B. B. SMITH
Local Manager
Lone Star Gas Company
P.O. Box 209 • Georgetown, Texas 78626
Honorable Mayor Larry Tana and City Council
City of Round Rock
Round Rock, TX
Gentlemen:
August 27, 1981
On August 27, 1981, I filed a Statement of Intent (Attachment No. 1) to change
the rates charged for natural gas service in Round Rock. The new rates will result
in an estimated annual revenue increase for Lone Star's Round Rock distribution
system of $94,213. g g a
The proposed increase in annual revenues is intended to allow Lone Star Gas
Company the recovery of its expenses and also to provide Lone Star with the oppor-
tunity to earn a fair and reasonable rate of return upon the investment in the
Round Rock distribution system. This return, of course, goes to pay the people
whose monies are invested in the system.
The revenues, expenses and investment on which our filing is based have been
measured as of December 31, 1980; this is the end of the teat year. The proposed
rate is based upon sales volumes measured as of that same date.
Lone Star's last rate increase in Round Rock occurred inJanuary, 1981./
Since that time, revenues have become inadequate to cover operating expenses and
still allow a reasonable return. Even though these expenses have continued to
rise, Lone Star Gas Company still has one of the lowest average gas costs and
operating costs per customer among the major gas utilities. With this proposed
increase, Lone Star will be able to continue to provide its customers in Round
Rock an excellent quality of service at the lowest possible cost.
Among the documents filed with the Statement of Intent are two which may
need additional explanation. First, is a request for temporary rate relief which
may be granted if the City Council decides it will need an extended period of time
to study the proposed rate.
Second, is a bond form which is provided so that you may be aware of the
proposed bond amount- eadthe surety comna to be used. Should the City not
take action before +9 0 days from t he proposed effectiv date, specified in the
Statement of Inten , F'e u�lc Ut lity Regulatory Act provvIaes for the imple-
mentation of the proposed rate under such a bond.
Because one of the greatest concerns in any rate proceeding is the impact of
the increase upon the consumer, I have attached a bill comparison using the current
and the proposed rates (see Attachment No. 2).
Let me assure you that as your manager for Lone Star Gas Company I stand
ready to assist in every possible way as you evaluate this proposal. Additional
information will be provided upon request.
BBS /kb
Attachments:
1) Statement of Intent to Change Rates
2) Bill Comparison
Respectfully,
8. x. 6.
B. B. Smith
Manager
WHEREAS, Lone Star Gas Company has previously filed a statement of
intent to change rates for gas sold to residential and commercial customers
within the city limits of Round Rock, Williamson County, Texas, such state-
ment being filed on or about August 27, 1981; and
WHEREAS, the City of Round Rock, Texas, has been given written notice
by Lone Star Gas Company that such change to rates are to be placed into effect
on and after October 5, 1981; and
WHEREAS, Article 1446c, Sec. 43(d), Vernon's Annotated Civil Statutes,
makes provisions for the suspension of the operation of such schedule of rates
and tariffs for a period not to exceed one hundred twenty (120) days beyond
the date on which the schedule of rates would otherwise go into effect and
further provides for an additional extension of the period of suspension for an
additional extension of the period of suspension for an additional period of
thirty (30) days if the need arises, Now Therefore
BE IT RESOLVED by the City Council of the City of Round Rock, Texas,
hereinafter referred to as Regulatory Authority, that the Mayor of the City of
Round Rock, Texas, shall notify Lone Star Gas Company on behalf of Regulatory
Authority that there is a need to suspend the operation of the schedule of rates
for a period of one hundred twenty (120) days from October 5, 1981 so that
Regulatory Authority may be furnished with additional data and information not
only from Lone Star Gas Company but from other sources and so that Regulatory
Authority shall have the needed and necessary time for a study and determination
based upon such data.
ATTEST:
..
(Ike
NNE LAND, Cittary
RESOLUTION NO.409/C
RESOLUTION AUTHORIZING THE MAYOR OF THE CITY OF ROUND ROCK,
TEXAS, TO GIVE NOTICE UNDER ARTICLE 1446c, 43(d) TO LONE
STAR GAS COMPANY TO SUSPEND OPERATION OF A SCHEDULE OF RATES
AND TARIFFS PENDING A STUDY BY THE CITY COUNCIL CONCERNING
THE SCHEDULE OF RATES PROPOSED BY LONE STAR GAS COMPANY.
RESOLVED this 10th day of September, 1� /
RY L. TO ", May •r
City of Round Rock, Texas