R-82-473 - 8/26/1982WHEREAS, 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 statement being filed on or
about August 12, 1982; 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 or and
after September 17, 1982; 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 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 September 17, 1982 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.
RESOLVED this 26th day of August, 1982.
ATTEST:
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.
LAND, City S- cretary
RESOLUTION NO. 03e
1111111110 I
L . T N, ayor
City of Round Rock, Texas
Line
LONE STAR GAS COMPANY - TRANSMISSION DIVISION
STATEMENT OF GAS COST ADJUSTMENT AND CITY GATB RATE* EFFECTIVE DECEMBER, 1982
IN ACCORDANCE Willi ORDER OF TEXAS RAILROAD COMMISSION UNDER DOCKET NO. GUD -3543
51 468 000 $195 106 200 $ 3.7908
1 997 000 5 924 000 2.9664
2 675 1 317 000 3r8M8
50/90 000 $190 713 200 3.7549
.9754
3.8496
.0000
3.5195
.0942
.0890
.0476
1 Estimated Gas Purchases
2 Plus Estimated Withdrawal From Storage
3 Less Estimated Injection Into Storage
$ Estimated Net Gas Received Into System
5 Ratio Volume Sold To Volume Received
6 Estimated Weighted Average Cost Of Gas Sold (EACOG)
7 Plus Gas Cost Correction Factor (MGCCF) Bared On October, 1982
8 Less Base Cost Of Gas Included In Base Rate
9 Less Extracted Products Revenue Adjustment (MEPRA) Based On October, 1982
10 Plus Base Extracted Products Revenue Per Mef
11 Plus Out -of- Period Adjustment Per Mcf (3K7PA) Based On October, 1982
12 Plus Carry Forward Account Factor (MCFAF) Based On October, 1982 ,OOOa
13 Subtotal .3725
14 State Utility Tax Recovery Factor X 1.0025
15 Gas Cost Adjustment (NGCA) .3734
16 Plus Base City Gate Rate . l
17 Regular City Gate Rate 4.3934
18 Less Credit Pursuant To FERC Incremental Pricing Surcharge . 9000
19 City Gate Rate $ 4
&iv?*14'L Lf,O.P-A- (14 Gicla
M cf
MGCA Statement
Revised
Amount Amt. /Mcf
*Intracoapany charge to the Company's distribution divisions for sale to
residential and commercial customers and for distribution company -used
and unaccounted -for gas.
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PROCEEDINGS BEFORE THE CITY COUNCIL OF THE
CITY OF ROUND ROCK , TEXAS -
APPLICATION OF LONE STAR CAS -
COMPANY FOR AN INCREASE IN RATES
MOTION FOR TEMPORARY RATE RELIEF
TO THE HONORABLE CITY COUNCIL OF THE CITY OF ROUND 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 12 th day of Angget , 1982 , 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 September 17, 1982 •
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
a te.Qszril ■ aiw\ , g-u 12 -JL-
Ls
1,3
THE STATE OF TEXAS
COUNTY OF DALLAS
BOND FOR INCREASED RATES DURING SUSPENSION
Z
1
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 811,000.00
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
Approved this day of (see attachment)
, 19 - (Surety)
By B y
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
BOND FOR INCREASED RATES DURING SUSPENSION
X
X
X
KNOW ALL MEN BY THESE PRESENTS:
THAT WE, Lone Star Gas Company, a Division of ENSERCH CORPORATION,'
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 $11,000.00
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
Approved this day of (see attachment)
19 (Surety)
By B y
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 - -should it_ become necessary to implement the bond.
PROCEEDINGS BEFORE THE CITY COUNCIL OF THE
CITY OF ROUND ROCK , TEXAS
APPLICATION OF LONE STAR CAS
COMPANY FOR AN INCREASE IN RATES
- MOTION FOR TEMPORARY RATE RELIEF
TO THE HONORABLE CITY COUNCIL OF THE CITY OF ROUND TEXAS
NOW CORES Lone Star Gas Company, a Division of ENSERCH CORPORATION, a
Texas corporation, and would show the Honorable City the City _ of
_,
,Round Rock , Texas, the following: -
1. • On the 12 th day of _JhLsu t , 19 82 , 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 September 17, 1989 -
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 - 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 yell 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
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
TEST YEAR ENDED 12 31 81
INDEX
Page
Summary of Revenues, Expenses, Taxes and Income
With Present Rates and With Proposed Rates 1
Customers, Sales Volumes and Revenues 2
Gas Purchased Volumes, Cost Per Mcf and Expense 3
Other Operation and Maintenance Expense 4
Taxes Other Than Income Taxes 5
Adjustments to Test Year Revenues and Expenses 6 — 8
Calculation of Federal Income Taxes 9
Return Provided by Present Rates and by Proposed Rates
and Income Deficiency at Present Rates 10
Return Requirement Included in Proposed Rates as of 12 31 81
and Eroded Return Provided by Proposed Rates as of 12 31 82 11
Erosion of Return Due to Declining Consumption, Increasing
Operating Expenses, and Projected Debt Cost Increase During
Twelve Months Ending 12 31 82 12
Plant in Service at Original Cost Less Depreciation and
Invested Capital as of 12 31 81 13
Plant Reproduction Cost New Less Adjustment for Age and
Condition and Total RCN Less Adjustment as of 12 31 81
Adjusted Value Rate Base as of 12 31 81
Calculation of Residential and Commercial Gas Sales Revenue
at Proposed Rates
Proposed Rates Applicable to Residential and Commercial
Gas Service
Schedule of Service Charges
14
15
16
17
18
Note: All amounts herein are in dollars unless otherwise shown as number
of customers, as volumes in Mcf, as percentages or as ratios.
LINE
1 WITH PRESENT RATES
SUMMARY OF REVENUES. EXPENSES, TAXES AND INCOME
WITH PRESENT RATES AND WITH PROPOSED RATES
2 OPERATING REVENUES 1,179,849 1,142,155
3 OPERATING EXPENSES
4 GAS PURCHASED 789.541 761,224
5 OTHER OPERATION AND MAINTENANCE 219.237 243,816
6 TAXES OTHER THAN INCOME TAXES 61,023 59,584
7 PROVISION FOR DEPRECIATION 38,262 38,262
8 INTEREST ON CUSTOMER DEPOSITS 1,888 1,888
9 INTEREST ON CUSTOMER ADVANCES 4,725 4.725
10 TOTAL OPERATING EXPENSES BEFORE FIT 1,114,676 1.109,499
11 NET OPERATING INCOME BEFORE FIT 65.173 32,656
12 FEDERAL INCOME TAXES 13.251 0
13 NET OPERATING INCOME 51,922 32,656
14 WITH PROPOSED RATES
15 OPERATING REVENUES 1,246,765 1,206.672
16 OPERATING EXPENSES
17 GAS PURCHASED 789,541 761,224
18 OTHER OPERATION AND MAINTENANCE 219,237 243,816
19 TAXES OTHER THAN INCOME TAXES 63.615 . 62,083
20 PROVISION FOR DEPRECIATION 38,262 38.262
21 INTEREST ON CUSTOMER DEPOSITS 1,888 1,888
22 INTEREST ON CUSTOMER ADVANCES 4,725 4,725
23 TOTAL OPERATING EXPENSES BEFORE FIT
24
25
26
NET OPERATING INCOME BEFORE FIT
FEDERAL INCOME TAXES
NET OPERATING INCOME
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
PAGE 1
P R O F O R M A
AS OF AS OF
12 31 81 12 31 82
1,117,268 1,111,998
129,497 94,674
42.840 26,431
86,657 63.243
LINE
1 CUSTOMERS- AVERAGE BILLINGS PER MONTH
6 SALES VOLUMES - MCF
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
CUSTOMERS, SALES VOLUMES AND REVENUES
12 OPERATING REVENUES WITH PRESENT RATES
PAGE 2
P R O F O R M A
AS OF AS OF
12 31 81 12 31 82
2 RESIDENTIAL 2,746 2,746
3 COMMERCIAL 146 146
4 INDUSTRIAL AND PUBLIC AUTHORITY 5 5
5 TOTAL CUSTOMERS 2,897 2,897
7 RESIDENTIAL 149,836 141,595
8 COMMERCIAL 33,471 32,835
9 INDUSTRIAL AND PUBLIC AUTHORITY 60,061 60,061
10 OTHER 0 0
11 TOTAL SALES VOLUMES 243,368 234,491
13 RESIDENTIAL GAS SALES (ACCT. 480) 784,571 749,575
14 COMMERCIAL GAS SALES (ACCT. 481) 155,064 152,366
15 INDUST. & PUB. AUTH. GAS SALES (ACCT. 481) 225,412 225,412
16 OTHER GAS SALES (ACCT. 481) 0 0
17 TOTAL GAS SALES REVENUES 1,165,047 1,127,353
18 OTHER -SER. CHARGE, ETC. (ACCT. 488 & 495) 14,802 14,802
19 TOTAL OPERATING REVENUES
20 OPERATING REVENUES WITH PROPOSED RATES
1,179,849 1,142,155
21 RESIDENTIAL GAS SALES (ACCT. 480) 841,552 804,338
22 COMMERCIAL GAS SALES (ACCT. 481) 164,989 162,120
23 INDUST. & PUB. AUTH. GAS SALES (ACCT. 481) 225,412 225,412
24 TOTAL GAS SALES REVENUES 1,231,963 1,191,870
25 OTHER -SER. CHARGE, ETC. (ACCT. 488 & 495) 14,802 14,802
26 TOTAL OPERATING REVENUES 1,246,765 1,206,672
LINE
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
GAS PURCHASED VOLUMES, COST PER MCF AND EXPENSE
1 GAS PURCHASED VOLUMES - MCF
PAGE 3
AS
PRO FORMA
R AS
F OF
12 31 81 12 31 82
2 RESIDENTIAL SALES VOLUME 149,836 141,595
3 COMMERCIAL SALES VOLUME 33,471 32,835
4 INDUSTRIAL & PUBLIC AUTH. SALES VOLUME 60,061 60,061
5 OTHER SALES VOLUME 0 0
6 TOTAL SALES VOLUMES 243,368 234,491
7 COMPANY USE VOLUME 0 0
8 UNACCOUNTED - FOR VOLUME 414 399
9 TOTAL PURCHASED VOLUMES 243,782 234,890
10 GAS PURCHASED COST PER MCF
11 RESIDENTIAL
12 COMMERCIAL
13 INDUSTRIAL & PUBLIC AUTHORITY
14 OTHER
15 COMPANY USE
16 UNACCOUNTED -FOR
17 GAS PURCHASED = XPENSE
25 UNACCOUNTED -FOR GAS VOLUME RATIO TO
TOTAL PURCHASED VOLUMES 0.0017 0.0017
3.1847 3.1847
3.1847 3,1847
3.4040 3.4040
3.1847 3.1847
3.1847 3.1847
3.1847 3.1847
18 RESIDENTIAL (ACCT. 804) 477,183 450,938
19 COMMERCIAL (ACCT. 804) 106.595 104,570
20 INDUSTRIAL & PUBLIC AUTH. (ACCT. 804) 204,445 204,445
21 OTHER (ACCT. 804) 0 0
22 COMPANY USE (ACCT. 804) 0 0
23 UNACCOUNTED - FOR (ACCT. 804) 1,318 1,271
24 TOTAL GAS PURCHASED EXPENSE 789,541 761,224
26 VOLUME FACTOR FOR GAS COST ADJUSTMENT 1.0017
LINE
1 DISTRIBUTION OPERATION AND MAINTENANCE
2 OPERATION LABOR (ACCTS. 870 -879)
3 OPERATION SUPPLIES & EXP. (ACCTS. 870 -881)
4 MAINTENANCE LABOR (ACCTS. 885 -894)
5 MAINTENANCE SUPPLIES & EXP. (ACCTS. 885 -894)
6 CUSTOMER ACCOUNTS
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
OTHER OPERATION AND MAINTENANCE EXPENSE
7 LABOR (ACCTS. 901 -903 & 905) 26,230 28,486
8 SUPPLIES & EXPENSES (ACCTS. 901 -903 & 905) 21,574 24,594
9 CUSTOMER SERVICE & INFORMATION
10 LABOR (ACCTS. 907 -910) 2,452 2,663
11 SUPPLIES & EXPENSES (ACCTS. 907 -910) 2,703 3,081
12 SALES
13 LABOR (ACCTS. 911 -913 & 916) 4,925 5,349
14 SUPPLIES & EXPENSES (ACCTS. 911 -913 & 916) 3,152 3,593
15 ADMINISTRATIVE AND GENERAL
16 LABOR (ACCT. 920) 14,733 16,000
17 SUPPLIES & EXPENSES (ACCTS. 921 -932 & 426) 44,603 50,847
18 UNCOLLECTIBLE ACCOUNTS (ACCT. 904) 5,254 5,254
19 TOTAL OTHER OPERATION & MAINTENANCE EXP. 219,231 243,816
20 SUMMARY OF OTHER OPERATION & MAINTENANCE EXP.
21 LABOR
22 SUPPLIES & EXPENSES
23 UNCOLLECTIBLE ACCOUNTS
24 TOTAL OTHER OPERATION & MAINTENANCE EXP.
PAGE 4
PRO F O RAS
AS Of OF
12 31 81 12 31 82
30,946 33,607
10,422 11,881
20,300 22,046
31,943 36,415
99,586 108,151
114,397 130,411
5,254 5,254
219,237 --- 243,816
LINE
1 TAXES OTHER THAN INCOME TAXES
WITH REVENUES AT PRESENT RATES
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
TAXES OTHER THAN INCOME TAXES
PAGE 5
P R O F O R M A
AS OF AS OF
12 31 81 12 31 82
2 PROPERTY-RELATED TAXES 13,772 13,772
3 PAYROLL - RELATED TAXES 6,358 6,379
4 REVENUE - RELATED TAXES 40,893 39,433
5 TOTAL TAXES OTHER THAN INCOME TAXES 61,023 59,584
6 TAXES OTHER THAN INCOME TAXES
WITH REVENUES AT PROPOSED RATES
7 PROPERTY - RELATED TAXES 13,772 13,772
8 PAYROLL - RELATED TAXES 6,358 611379
9 REVENUE RELATED TAXES 43,485 41,932
10 TOTAL TAXES OTHER THAN INCOME TAXES 63,615 62,083
11 REVENUE-RELATED EFFECTIVE TAX RATES
APPLICABLE TO RESIDENTIAL AND COMMERCIAL
SALES REVENUES
12 STATE OCCUPATION TAX 0.01935 0.01935
13 CITY STREET AND ALLEY RENTAL 0.01938 0.01938
14 TOTAL REVENUE - RELATED TAX RATES 0.03873 0.03873
15 REVENUE TAX FACTOR FOR GAS COST ADJUSTMENT
BASED ON ADJUSTED TAX RATES AS OF 12 31 81 1.04029
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
ADJUSTMENTS TO TEST YEAR END REVENUES AND EXPENSES
ADJUSTMENT NUMBER AND DESCRIPTION
1 ADJUST TEST YEAR SALES VOLUMES FOR WEATHER FROM
2.061 HOD ACTUAL TO 1,992 HOD NORMAL
RESIDENTIAL SALES VOLUME - MCF -2,210 0
COMMERCIAL SALES VOLUME - MCF -513 0
INDUSTRIAL & PUBLIC AUTH. SALES VOLUME - MCF -114 0
2 ADJUST NUMBER OF CUSTOMERS FOR GROWTH OR DECLINE
TO END OF TEST YEAR TO MATCH TO YEAR -END INVEST.
RESIDENTIAL CUSTOMERS 199 0
COMMERCIAL CUSTOMERS -3 0
INDUSTRIAL & PUBLIC AUTHORITY CUSTOMERS 0 0
3 ADJUST SALES VOLUMES FOR GROWTH DR DECLINE IN
NUMBER OF CUSTOMERS ACCORDING TO ADJUSTMENT 2
BASED ON WEATHER ADJUSTED CONSUMPTION PER CUST.
RESIDENTIAL SALES VOLUME - MCF 11,160 0
COMMERCIAL SALES VOLUME - MCF -695 0
INDUSTRIAL & PUBLIC AUTH. SALES VOLUME - MCF 0 0
4 ADJUST OTHER SALES VOLUME TO ZERO TO REFLECT
NONRECURRING NATURE OF THIS TYPE OF SALE
OTHER SALES VOLUME - MCF -191 0
5 ADJUST RESIDENTIAL SALES VOLUME BY 2.7% AS OF
12 31 81 AND BY AN ADDITIONAL 5.5% AS OF
12 31 82 TO REFLECT DECLINING CONSUMPTION.
SIMILARLY ADJUST COMMERCIAL SALES VOLUME BY
1.0% AS OF 12 31 81 ANO BY AN ADDITIONAL 1.9%
AS OF 12 31 82.
RESIDENTIAL SALES VOLUME - MCF 9,157 8,241
COMMERCIAL SALES VOLUME MCF 338 636
6 ADJUST INDUSTRIAL SALES VOLUME FOR OTHER KNOWN
CHANGES (CHANGES OTHER THAN WEATHER NORMAL-
IZATION SHOWN BY ADJUSTMENT 1)
INDUSTRIAL & PUBLIC AUTH. SALES VOLUME - MCF
7 ADJUST GAS SALES REVENUE TO ANNUALIZE WITH
PRESENT BURNER -TIP RATES INCLUDING GCA BASED ON
PURCHASE COSTS AT ENO OF TEST YEAR AND BASED ON
ACTUAL BILLING DATA AS ADJUSTED BY ADJUSTMENTS
1 THROUGH 6
PAGE 6
ADDITIONAL
ADJUSTMENT ADJUSTMENT
AS OF AS OF
12 31 81 12 31 82
0 0
RESIDENTIAL SALES REVENUE 166,774 - 34,996
COMMERCIAL SALES REVENUE 21,309 -2,698
INDUSTRIAL & PUBLIC AUTH. SALES REVENUE 27,899 0
OTHER SALES REVENUE -446 0
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
ADJUSTMENTS TO TEST YEAR REVENUES AND EXPENSES (CONT'D)
ADJUSTMENT NUMBER AND DESCRIPTION
8 ADJUST OTHER OPER. REV., SERV. CHARGES, ETC., TO
ANNUALIZE FOR ACTUAL CHANGES DURING THE TEST YEAR
OTHER OPERATING REVENUES - SERV. CHARGES, ETC.
9 ADJUST UNACCOUNTED -FOR GAS VOLUME TO
PERCENTAGE DURING TWELVE MONTHS ENDED
JUNE 30. 1981 , & BASED ON VOLUMES AS ADJUSTED
BY ADJUSTMENTS 1, 3, 4, 5, AND 6
UNACCOUNTED -FOR VOLUME - MCF
10 ADJUST GAS PURCHASED EXPENSE TO ANNUALIZE PORCH.
COSTS AT END OF TEST YEAR AND BASED ON GAS
PURCHASED VOLUMES AS ADJUSTED BY ADJUSTMENTS 1,
3, 4, 5, 6, AND 9
11 ADJUST ADMIN. AND GENERAL EXPENSE TO ELIMINATE
RATE CASE EXPENSE RECORDED DURING THE TEST YEAR
ADMINISTRATIVE AND GENERAL SUPPLIES & EXPENSES
13 ADJUST LABOR AND SUPPLIES & EXPENSES FOR GROWTH OR
DECLINE IN NUMBER OF CUSTOMERS ACCORDING TO
ADJUSTMENT 2 BASED ON ACTUAL TEST YEAR EXPENSE
PER CUSTOMER - AFTER ADJUSTING ACCORDING TO
ADJUSTMENTS 11 & 12
DISTRIBUTION OPERATION LABOR
DISTRIBUTION OPERATION SUPPLIES & EXPENSES
DISTRIBUTION MAINTENANCE LABOR
DISTRIBUTION MAINTENANCE SUPPLIES & EXPENSES
CUSTOMER ACCOUNTS LABOR
CUSTOMER ACCOUNTS SUPPLIES & EXPENSES
CUSTOMER SERVICE & INFO. LABOR
CUSTOMER SERVICE & INFO. SUPPLIES & EXPENSES
SALES LABOR
SALES SUPPLIES & EXPENSES
ADMINISTRATIVE AND GENERAL LABOR
ADMINISTRATIVE AND GENERAL SUPPLIES & EXPENSES
ADJUSTMENT
AS OF
12 31 81
PAGE 7
ADDITIONAL
ADJUSTMENT
AS OF
12 31 82
0 0
2,434 -15
RESIDENTIAL GAS PURCHASED EXPENSE 650271 - 26,245
COMMERCIAL GAS PURCHASED EXPENSE 7,249 -2,025
INDUSTRIAL & PUBLIC AUTH. GAS PORCH. EXPENSE 27,380 0
OTHER GAS PURCHASED EXPENSE -553 0
COMPANY USE GAS PURCHASED EXPENSE 0 0
UNACCOUNTED -FOR GAS PURCHASED EXPENSE 2,072 -47
ADMINISTRATIVE AND GENERAL SUPPLIES & EXPENSES 3,425 0
12 ADJUST ADMIN. AND GENERAL EXPENSE TO INCLUDE
DONATIONS MADE DURING THE TEST YEAR
594 0
2,003
657
1,315
2,011
1,697
1,358
159
171
319
198
2,807
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
ADJUSTMENTS TO TEST YEAR REVENUES AND EXPENSES (CONT +D)
ADJUSTMENT NUMBER AND DESCRIPTION
14 ADJUST TEST YEAR LABOR BY 4.5% AS OF 12 31 81
AND BY AN ADDITIONAL 8.6% AS OF 12 31 82.
SIMILARLY ADJUST TEST YEAR SUPPLIES & EXPENSES
BY 7.5% AS OF 12 31 81 AND BY AN ADDITIONAL
14.0% AS OF 12 31 82 - -- AFTER ADJUSTING
ACCORDING TO ADJUSTMENTS 11, 12, AND 13
DISTRIBUTION OPERATION LABOR
DISTRIBUTION OPERATION SUPPLIES & EXPENSES
DISTRIBUTION MAINTENANCE LABOR
DISTRIBUTION MAINTENANCE SUPPLIES & EXPENSES
CUSTOMER ACCOUNTS LABOR
CUSTOMER ACCOUNTS SUPPLIES & EXPENSES
CUSTOMER SERVICE & INFORMATION LABOR
CUSTOMER SERVICE & INFORMATION SUP. & EXP.
SALES LABOR
SALES SUPPLIES & EXPENSES
ADMINISTRATIVE & GENERAL LABOR
ADMINISTRATIVE & GENERAL SUPPLIES & EXPENSES
15 ADJUST PAYROLL- RELATED TAXES TO INCLUDE EFFECT OF
1982 FICA INCREASE, BASED ON LABOR AS ADJUSTED BY
ADJUSTMENTS 13 & 14
PAYROLL- RELATED TAXES
16 ADJUST REVENUE - RELATED TAXES BASED ON TAX PERCENT
APPLICABLE TO SALES REVENUES AS ADJUSTED BY
ADJUSTMENT 7
REVENUE - RELATED TAXES
17 ADJUST DEBT INTEREST COST TO 10.65% AS OF
12 31 82 FROM 10.34% AS OF 12 31 81 BASED
ON REPRICING OF CURRENT MATURITIES
ADJUSTMENT
A S OF
12 31 81
1,333
727
874
2,229
1,130
1,505
106
189
212
220
634
3,112
PAGE 8
ADDITIONAL
ADJUSTMENT
AS OF
12 31 82
2,661
1,459
1,746
4,472
2,256
3,020
211
378
424
441
1,267
6,244
240 21
21,234 -1,460
DEBT COST 0 848
RETURN PROVIDED BY PRESENT RATES AND BY PROPOSED RATES
AND INCOME DEFICIENCY AT PRESENT RATES
LINE
1 RETURN PROVIDED BY PRESENT RATES
2 NET OPERATING INCOME /RETURN
3 PERCENT RETURN ON ADJUSTED VALUE RATE BASE
4 RETURN PROVIDED BY PROPOSED RATES
7 INCOME DEFICIENCY AT PRESENT RATES
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
P R O F O R M A
AS OF
F
12 12
51,922
6.92
5 NET OPERATING INCOME /RETURN 86.657 • 68,243
6 PERCENT RETURN ON ADJUSTED VALUE RATE BASE 11.55 9.10
8 REQUIRED RETURN /NET OPERATING INCOME 86,657
9 LESS: NET OPERATING INCOME 51,922
10 INCOME DEFICIENCY 34,735
PAGE 10
32.656
4.35
87.505
32.656
54,849
LINE
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
CALCULATION OF FEDERAL INCOME TAXES
1 CALCULATION OF FEDERAL .INCOME TAXES
WITH REVENUES & INCOME AT PRESENT RATES
?AGE 9
P R O F O R M A
AS OF AS OF
12 31 81 12 31 82
2 NET OPERATING INCOME BEFORE FIT 659173 32,656
3 LESS COST OF DEBT 289277 29,125
4 LESS CAPITALIZED OVERHEADS & TAXES 89066 8,066
5 TAXABLE INCOME 28,830 -4,535
6 TAX AT 46% OF TAXABLE INCOME /1/ 13,262 0
7 SURTAX CREDIT 11 11
8 TOTAL FEDERAL INCOME TAXES 139251 0
9 CALCULATION OF FEDERAL INCOME TAXES
WITH REVENUES & INCOME AT PROPOSED RATES
10 NET OPERATING INCOME BEFORE FIT 129,497 94,674
11 LESS COST OF DEBT 289277 29,125
12 LESS CAPITALIZED OVERHEADS & TAXES 89066 8,066
13 TAXABLE INCOME 939154 57,483
14 TAX AT 46% OF TAXABLE INCOME /1/ 42,851 269442
15 SURTAX CREDIT 11 11
16 TOTAL FEDERAL INCOME TAXES 42,840 26,431
/1/ WHERE APPLICABLE NEGATIVE TAX SET TO ZERO
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
RETURN REQUIREMENT INCLUDED IN PROPOSED RATES AS OF 12 31 81
AS OF
LINE 12 31 81
1 RATE BASE BY KIND OF CAPITAL
2 INVESTED CAPITAL
3 DEBT (45.9% OF LINE 6) 273,474
4 PREFERRED STOCK (5.2% OF LINE 6) 30,982
5 COMMON EQUITY AT BOOK VALUE (48.9% OF LINE 6) 291,348
6 TOTAL INVESTED CAPITAL (PAGE 13) 595,803
7 ADJUSTED VALUE INCREMENT (LINE 8 LESS LINE 6) 154,512
8 TOTAL ADJUSTED VALUE RATE BASE (PAGE 15) 750,315
9 RETURN REQUIREMENT BASED ON COST OF INVESTED CAPITAL
AND RETURN ON ADJUSTED VALUE INCREMENT
. 10 COST OF INVESTED CAPITAL
11 DEBT COST (10.34 %)
12 PREFERRED STOCK COST (8.99X)
13 COMMON EQUITY COST AT BOOK VALUE (18.00%)
14 TOTAL COST OF INVESTED CAPITAL (14.021)
15 RETURN ON ADJUSTED VALUE INCREMENT (2.04x)
16 TOTAL RETURN REQUIREMENT ON ADJUSTED VALUE
RATE BASE (11.55X)
ERODED RETURN PROVIDED BY PROPOSED RATES AS OF 12 31 82
17 TOTAL RETURN /NET OPERATING INCOME PROVIDED
18 LESS: DEBT COST (10.65X)
19 LESS: PREFERRED STOCK COST (8.99x)
20 RETURN ON COMMON EQUITY AT BOOK VALUE (12.47X)
21 RETURN ON ADJUSTED VALUE INCREMENT (0.00X)
PAGE 11
28,277
2,785
52,443
83,505
3,152
86,657
AS OF
12 31 82
68,243
29,125
2,785
36,333
0
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
EROSION OF RETURN DUE TO DECLINING CONSUMPTION, INCREASING OPERATING EXPENSES
AND PROJECTED DEBT COST INCREASE
DURING TWELVE MONTHS ENDING 12 31 82
LINE
1 EROSION DUE TO DECLINING CONSUMPTION
2 RESIDENTIAL GAS SALES REVENUE*
3 COMMERCIAL GAS SALES REVENUE*
4 TOTAL EROSION OF REVENUE*
5 RESIDENTIAL GAS PURCH. EXP.
6 COMMERCIAL GAS PURCH. EXP.
7 UNACCOUNTED -FOR GAS PURCH. EXP.
8 REVENUE - RELATED TAXES*
9 TOTAL CHANGE IN EXPENSES
10 EROSION OF NET OPER. INC. BFIT
11 EROSION DUE TO INCR. OPER. EXP.
21 EROSION OF RET. ON COMMON EQUITY
INCL. EFFECT OF DEBT COST INCR.
22 EROSION OF NET OPER. INC. (L.20)
23 EROSION DUE TO DEBT COST INCR.
24 EROSION OF RET. ON COMMON EQUITY
P R O F O R M A
AS OF AS OF
12 31 81 12 31 82
841, 562
164,989
477,183
106,595
1,318
43,485
804,338'
162,120
450,938
104,570
1,271
41,932
PAGE 12
TWELVE
MONTHS
EROSION
- 37,224
-2,869
- 40,093
- 26,245
- 2,025
-47
- 1,553
- 29,870
- 10,223
12 LABOR EXPENSE 99,586 108,151 8,565
13 SUPPLIES & EXPENSES 114,397 130,411 16,014
14 PAYROLL - RELATED TAXES 6,358 6,379 21
15• TOTAL CHANGE IN EXPENSES 24,600
16 EROSION OF NET•OPER. INC. BFIT - 24,600
17 EROSION OF NET DPER. INC. /RETURN
ON RATE BASE DUE TO ABOVE CHANGES
18 EROSION OF NET OPER. INC. BFIT - 34,823
19 CHANGE IN FEDERAL INCOME TAXES* - 16,409
20 EROSION OF NET OPER. INC. /RETURN - 18,414
- 18,414
-848
- 19,262
*REVENUE, REVENUE - RELATED TAXES, AND FEDERAL INCOME TAXES ARE STATED ON THE
BASIS OF PROPOSED RATES, AS THOUGH THE PROPOSED RATES WERE EFFECTIVE
AS OF 12 31 31.
LINE
PLANT IN SERVICE AT ORIGINAL COST LESS DEPRECIATION AND INVESTED CAPITAL
AS OF 12 31 81
1 PLANT IN SERVICE (ACCT)
2 DISTRIBUTION PLANT
20 INVESTMENT ADDITIONS
21 CONST WORK IN PROGRESS (107)
22 RETIRE YORK IN PROG (10825)
23 WORKING CAPITAL
24 CASH REQUIREMENT FOR 0&M EXP
25 MATERIALS & SUPPLIES (154)
26 PREPAYMENTS 1165)
27 TOTAL INVESTMENT ADDITIONS
28 INVESTMENT DEDUCTIONS
29 CUSTOMER DEPOSITS (235)
30• CUST ADVANCES FOR CONSTR (252)
31 TOTAL INVESTMENT DEDUCTIONS
32 TOTAL INVESTED CAPITAL
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
ORIGINAL
COST
PAGE 13
ORIGINAL COST
ACCUMULATED LESS
DEPRECIATION DEPRECIATION
3 LAND (37401) 0 0 0
4 LAND RIGHTS (37402) 2,042 396 1,646
5 STRUCTURES & IMPROVEMENTS (375) 229 45 184
6 MAINS (376) 803,875 155,812 648,063
7 MAR STA EQUIP- GENERAL (378) 8,525 1,561 6,964
8 MAR STA EQUIP -CITY GATE (379) 1,464 284 1,180
• 9 SERVICES (380) 141,749 27,506 114,243
10 METERS (381) 72,473 14,063 58,410
11 METER INSTALLATIONS (382) 22,251 4,318 17,933
12 HOUSE REGULATORS (383) 19,101 3,707 15,394
13 HOUSE REGULATOR INSTL (384) 2,583 501 2,082
14 OTHER PROP ON CUST PREM (386) 0 0 0
15 OFF FURN & EQUIP (38701) 0 0 0
16 OTHER EQUIPMENT (38702) 387 75 312
17 TOTAL DISTRIBUTION PLANT - 1,074,679 208,268- Y- 866,411
18 GENERAL PLANT ALLOCATED 77,970 32,152 45,818
19 TOTAL PLANT IN SERVICE 1,152,649 240,420 912,229
3,989
44
27,405
6,070
3,511
41,019
35,226
322,219
357,445
595,803
LINE
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
PLANT REPROOUCTION COST NEW LESS ADJUSTMENT FOR AGE AND CONDITION
AND TOTAL RCN LESS ADJUSTMENT AS OF 12 31 81
REPRODUCTION
COST NEW (RCN)
ADJUSTMENT
FOR AGE &
CONDITION
PAGE 14
RCN LESS
ADJUSTMENT
1 PLANT IN SERVICE (ACCT)
2 DISTRIBUTION PLANT
3 LAND (37401) 0 0 0
4 LAND RIGHTS (37402) 2,042 396 1,646
5 STRUCTURES & IMPROVEMENTS (375) 229 45 184
6 MAINS (376) - 19219,457 184,351 1,035,106
7 M &R STA EQUIP-GENERAL (378) 16,124 5,673 10,451
8 M &R STA EQUIP - CITY GATE (379) 29268 408 1,860
9 SERVICES (380) 3559176 151,858 203,318
10 METERS (381) 1539212 229982 130,230
11 METER INSTALLATIONS (382) 36,387 3,431 32,956
12 HOUSE REGULATORS (383) 28,858 4,329 249529
13 HOUSE REGULATOR•INSTL (384) 4,418 657 39761
14 OTHER PROP ON CUST PREM (386) 0 0 0
15 OFF FURN & EQUIP (38701) 0 0 0
16 OTHER EQUIPMENT (38702) 387 75 312
17 TOTAL DISTRIBUTION PLANT 1,8189558 3749205 194449353
18 GENERAL PLANT ALLOCATED 77,970 329152 459818
19 TOTAL PLANT IN SERVICE 198969528 4069357 1,490,171
20 PLUS: INVEST ADDNS PER PAGE 13 41,019
21 LESS: INVEST DEDUCT PER PAGE 13 357,445
22 TOTAL RCN LESS ADJUSTMENT 1,1739745
LINE
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
ADJUSTED VALUE RATE BASE AS OF 12 31 81
PAGE 15
1 $595,803 INVESTED CAPITAL PER PAGE 13 AT 60% WEIGHT 357,482
2 $1,173,745 RCN LESS ADJUSTMENT PER PAGE 14 AT 40X WEIGHT 469,498
3 LESS: UNRESTORED POST -PURA INVESTMENT TAX CREDITS 74,209
4 LESS: ACCUMULATED OFIT ATTRIBUTABLE TO PLANT 2,456
5 TOTAL ADJUSTED VALUE RATE BASE 750,315
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
CALCULATION OF RESIDENTIAL AND COMMERCIAL GAS SALES REVENUE AT PROPOSED RATES
LINE
1 RESIDENTIAL GAS SALES REVENUE
2 CUSTOMER CHARGE REVENUE
3 CUSTOMERS - AVERAGE BILLINGS PER MONTH 2,746 2,746
4 BILLS PER YEAR (LINE 3 X 12 MONTHS) 32,952 32,952
5 CUSTOMER CHARGE - $ 5.0000 5.0000
6 CUSTOMER CHARGE REVENUE 164,760 164,760
7 WINTER MONTHS VOLUME CHARGE REVENUE
8 WINTER MONTHS SALES VOLUME - MCF 114,508 100,210
9 WINTER MONTHS VOLUME CHARGE - $ PER MCF 4.5759 4.5159
10 WINTER MONTHS VOLUME CHARGE REVENUE 523,977 495,158
11 SUMMER MONTHS VOLUME CHARGE REVENUE
12 SUMMER MONTHS SALES VOLUME - MCF 35,328 33,385
13 SUMMER MONTHS VOLUME CHARGE - $ PER MCF 4.3259 4.3259
14 SUMMER MONTHS VOLUME CHARGE REVENUE 152,825 144,420
15 TOTAL RESIDENTIAL GAS SALES REVENUE 841,562 804,338
16 COMMERCIAL GAS SALES REVENUE
PAGE 16
PRO F O R M A
AS OF AS
OF
12 31 81 12 31 82
17 CUSTOMER CHARGE REVENUE
15 CUSTOMERS - AVERAGE BILLINGS PER MONTH 146 146
19 BILLS PER YEAR (LINE 18 X 12 MONTHS) 1,752 1,752
20 CUSTOMER CHARGE - $ 8.0000 8.0000
21 CUSTOMER CHARGE REVENUE 14,016 14,016
22 WINTER MONTHS VOLUME CHARGE REVENUE
23 WINTER MONTHS SALES VOLUME - MCF 24,725 24,255
24 WINTER MONTHS VOLUME CHARGE - $ PER MCF 4.5759 4.5759
25 WINTER MONTHS VOLUME CHARGE REVENUE 113,139 110,988
26 SUMMER MONTHS VOLUME CHARGE REVENUE
27 SUMMER MONTHS SALES VOLUME - MCF 8,746 8,580
28 SUMMER MONTHS VOLUME CHARGE - $ PER MCF 4.3259 4.3259
29 SUMMER MONTHS VOLUME CHARGE REVENUE 37,834 37,116
30 TOTAL COMMERCIAL GAS SALES REVENUE 164,989 162,120
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
PROPOSED RATES APPLICABLE TO RESIDENTIAL AND COMMERCIAL GAS SERVICE
RATES APPLICABLE TO RESIDENTIAL AND COMMERCIAL GAS SERVICE
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
r
location. Summer rates shall be applicable between the meter reading dates in May and
October. Winter rates shall be applicable at all other times.
Winter Summer
Residential: Customer Charge 5.0000 5.0000
All Consumption 9 4.5759 Per Mcf 4.3259 Per Mcf
If the service period is less than 28 days, the customer charge is .1786 times the
number of days service.
Winter Summer
Commercial: Customer Charge 8.0000 8.0000
All Consumption 0 4.5759 Per Mcf 4.3259 Per Mcf
If the service period is less than 28 days, the customer charge is .2857 times the
number of days service.
Bills are due and payable when rendered and must be paid within ten days from monthly bill-
ing date.
GAS COST ADJUSTMENT
Each monthly bill at the above races shall be adjusted for gas cost as follows:
(1) The city gate rate increase or decrease applicable to cent billing month residential
�
and commercial sales shall be estimated to the nearest 0.0001 per Mcf based upon:
(a) A volume factor of 1.0017 1/ 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 volumes purchased during the
current calendar month, expressed to the nearest 0.0001 per Mcf (shown below
as "Re ").
(c) The base city gate rate of 3.1847 per Mcf.
(2) Correction of the estimated adjustment determined by Item (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) The estimated adjustment amount billed under Item (1) above, divided by
(c) 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 (1) and Item (2) above shall be multiplied by a tax
factor of 1.04029 2/ to include street and alley rental and state occupation tax due
to increasing or decreasing Company revenues under this gas cost adjustment provision.
In summary, the gas cost adjustment (GCA) shall be determined to the nearest 0.0001 per
Mcf by Item (1), Item (2), and Item (3) as follows:
GCA = [Item (1) + Item (2)] X Item (3)
GCA = [(1.0017) (Re - 3.1847) + C] X 1.04029
TAX ADJUSTMENT
The tax adjustment shall be an unt equivalent to the proportionate part of any new tax
or increased tax, or any other governmental imposition, rental, fee charge (except state,
county, city and special district ad valorem taxes and taxes o n net me) levied, assessed
or or imposed subsequent to January 1, 1982, upon o allocable to the Company's distribution
operations, by any new or amended law, ordinance or contract.
1/ See Page 3 Line 26 for Volume Factor
2/ See Page 5 Una 15 for Tax Factor
PAGE 17
(1) Reconnect Charge
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
SCHEDULE OF SERVICE CHARGES
In addition to the charges and rates set out above, the Company shall
charge and collect as a reconnect charge:
Schedule Charge
8 A.M. to 5 P.M. Monday through Friday $20.00
5 P.M. to 8 A.M. Monday through Friday 30.00
Saturdays, Sundays and Holidays 30.00
for each reconnection or reinauguration of gas service, where service
has been discontinued at the same premises for any reason, with the
following exceptions.
(a) For a builder who uses gas temporarily during construction or for
display purposes.
(b) For the first occupant of the premises.
(c) Whenever gas service has been temporarily interrupted because of
system outage, service work or appliance installation done by
Company; or
(d) For any reason deemed necessary for Company operations.
(2) Returned Check Charges
A returned check handling charge of $5 is made for each check returned
to the Company for reasons of non - sufficient funds, account closed,
payment withheld, invalid signature, or improper preparation.
PAGE 18
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
TEST YEAR ENDED 12 31 81
Schedule of Service Charges
INDEX
Proposed Rates Applicable to Residential and Commercial
Gas Service
Page
Summary of Revenues, Expenses, Taxes and Income
Glit3 Present Rates and With Proposed Rates 1
Customers, Sales Volumes and Revenues 2
as Purchased Volumes, Cost Par Me`_ and Expense 3
Other Operation and Maintenance Expense 4
Taxes Other Than Income Taxes 5
Adjustments to Test Year Revenues and Expenses 5 — 8
Calculation of Federal. Income Taxes 9
Return Provided by Present Rates and by Proposed Rates
and Income Deficiency at Present Rates 10
Return Requirement Included in Proposed Rates as of 12 31 81
and Eroded Return Provided by Proposed Rates as of 12 31 82 11
Erosion of Return Due to Declining Consumption, increasing
Operating Expenses, and Projected Debt Cost increase During
Twelve Months Ending 12 31 82 12
Plant in Service at Original Cost Less Depreciation and
Invested Capital as of 12 31 81 13
Plant Reproduction Cost New Less Adjustment for Age and
Condition and Total RCN Less Adjustment as of 12 31 81 14
Adjusted Value Rate Base as of 12 31 81 15
Calculation of Residential and Commercial Gas Sales Revenue
at Proposed Rates 16
17
18
Note: All amounts herein are in dollars unless otherwise shown as number
of customers, as volumes in Mcf, as percentages or as ratios.
1
14 WITH PROPOSED RATES
15 OPERATING REVENUES
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
SUMMARY OF REVENUES, EXPENSES, TAXES AND INCOME
WITH PRESENT RATES AND WITH PROPOSED RATES
16 OPERATING EXPENSES
17 GAS PURCHASED
18 OTHER OPERATION AND MAINTENANCE
19 TAXES OTHER THAN INCOME TAXES
20 PROVISION FOR DEPRECIATION
21 INTEREST ON CUSTOMER DEPOSITS
22 INTEREST ON CUSTOMER ADVANCES
23 TOTAL OPERATING EXPENSES BEFORE FIT
789,541
219,237
63,615
38,262
1,888
4,725
1,117,268
?AGE 1
P 8 0 F O R M A
AS OF AS OF
LINE 12 31 51 12 31 82
1 WITH PRESENT RATES
2 OPERATING REVENUES 1,179,849 1,142,155
.3 OPERATING EXPENSES
4 GAS PURCHASED 789,541 761,224
5 OTHER OPERATION AND MAINTENANCE 219,237 243,816
6 TAXES OTHER THAN INCOME TAXES 61,023 59,584
7 PROVISION FOR DEPRECIATION 38,262 38,262
8 INTEREST ON C USTOMER DEPOSITS 1,888 1,888
9 INTEREST ON CUSTOMER ADVANCES 4,725 4,725
10 TOTAL OPERATING EXPENSES BEFORE FIT 1,114,676 1,109,499
11 NET OPERATING INCOME HEFORE FIT 65,173 32,656
12 FEDERAL INCOME TAXES 13,251 0
13 `-1Et OPERATING 1N;�OME 51,922 32,656
1,246,765 1,206,672
761,224
243,816
62,083
35,262
1,888
4,725
1,111,998
24 NET OPERATING INCOME BEFORE FIT 129,497 94,674
25 FEDERAL INCOME TAXES 42,840 25,431
25 NET OPERATING INCOME 86,657 68,243
LINE
1 CUSTOMERS- AVERAGE BILLINGS PER MONTH
2 RESIDENTIAL 2,746 2,746
3 COMMERCIAL 146 146
4 INDUSTRIAL AND PUBLIC AUTHORITY 5 5
5 TOTAL CUSTOMERS 2,897 2,897
5 SALES VOLUMES - MCF
LONE STAR GAS COMPANY
ROUND ROCK DISTRLHUTION SYSTEM
CUSTOMERS, SALES VOLUMES AND REVENUES
P R 0 F O R M A
AS OF AS OF
12 31 81 12 31 82
12 OPERATING REVENUES WITH PRESENT RAZES
PAGE 2
7 RESIDENTIAL 149,836 .141,595
8 COMMERCIAL 33,471 32,335
9 INDUSTRIAL AND PUBLIC AUTHORITY 60,061 60,061
10 OTHER 0 0
11 TOTAL SALES VOLUMES 243,368 234,491
13 RESIDENTIAL GAS SALES (ACCT. 480) 784,571 743,575
14 COMMERCIAL GAS SALES (ACCT. 481) 155,064 152,366
15 INDUST. & 850. AUTH. GAS SALES (ACCT. 481) 225,412 225,412
16 OTHER GAS SALES (ACCT. 491) 0 0
17 TOTAL GAS SALES REVENUES 1,165,047 1,127,353
18 OTHER -SER. CHARGE, ETC.. (ACCT. 498 & 495) 14,802 14,802
19 TOTAL OPERATING REVENUES 1,179,849 1,142,155
20 OPERATING REVENUES WITH PROPOSED RATES
21 RESIDENTIAL GAS SALES (ACCT. 480)
22 COMMERCIAL GAS SALES (ACCT. 481)
23 INDUST. & PU3. AUTH. GAS SALES (ACCT. 481)
841,552 804,338
164,989 162,120
225,412 225,412
24 TOTAL GAS SALES REVENUES 1,231,963 1,191,810
25 OTHER -SER. CHARGE, ETC. (ACCT_ 488 6 495) 14,802 14,802
26 TOTAL OPERATING REVENUES 1,246,765 1,206,672
LINE
1 GAS PURCHASED VOLUMES - MCF
11 RESIDENTIAL
12 COMMERCIAL
13 INDUSTRIAL & PUBLIC AUTHORITY
14 OTHE8
15 COMPANY USE
16 UNACCOUNTED -FOR
17 GAS PURCHASED EXPENSE
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
GAS PURCHASED VOLUMES, COST PER MCF ANU .EXPENSE
26 VOLUME FACTOR FOR GAS COST ADJUSTMENT 1.0917
PAGE 3
P R O F 0 R M A
AS OE AS OF
12 31 81 12 31 82
2 RESIDENTIAL SALES VOLUME_ 149,836 141,595
3 COMMERCIAL SALES VOLUME 33,471 32,835
4 INDUSTRIAL 3 PUBLIC AUTH. SALES VOLUME 60,061 60,061
6
5 OTHER SALES VOLUME 0 0
TOTAL SALES VOLUMES 243,368 234,491
7 COMPANY USE VOLUME 0 0
8 UNACCOUNTED -FOR VOLUME 414 399
9 TOTAL PURCHASED VOLUMES 243,792 234,890
10 GAS PURCHASED COST PER MCF
3.1847 3.1847
3.1847 3,1847
3.4040 3.4040
3.1847 3.1847
3.1847 3.1847
3.1847 3.1847
18 RESIDENTIAL (ACCT. 804) 477,183 450,938
19 COMMERCIAL (ACCT. 804) 106,595 104,570
20 INDUSTRIAL & PUBLIC AUTH. (ACCT. 804) 204,445 204,445
21 OTHER (ACCT. 804) 0 0
22 COMPANY USE (ACCT. 804) 0 0
23 UNACCOUNTED -FOR (ACCT. 804) 1,118 1,271
24 TOTAL GAS PURCHASED EXPENSE 789,541 761,224
23 UNACCOUNTED -FOR GAS VOLUME RATIO TO
TOTAL PURCHASED VOLUMES 0.0017 0.0017
LINE
1 DISTRIBUTION OPERATION AND MAINTENANCE
2 OPERATION LABOR (,ACCTS. 870 -879)
3 OPERATION SUPPLIES & EXP. (ACCTS. 870 -881)
4 MAINTENANCE LABOR (ACCTS. 885 -894)
5 MAINTENANCE SUPPLIES & EXP. (ACCTS. 885 -894)
6 CUSTOMER ACCOUNTS
12 SALES
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
OTHER OPERATION AND MAINTENANCE EXPENSE
7 LABOR (ACCTS. 901-903 & 905)
8 SUPPLIES & EXPENSES (ACCTS. 901- 903 & 905)
8 CUSTOMER SERVICE & INFORMATION
10 LABOR (ACCTS. 907 -910)
11 SUPPLIES & EXPENSES (ACCTS. 907 -910)
20 SUMMARY OF OTHER OPERATION & MAINTENANCE EXP.
21 LABOR
2 2 SUPPLIES & EXPENSES
23 UNCOLLECTIBLE ACCOUNTS
P R O F O R M A
AS OF AS OF
12 31 81 12 31 82
30,946
10,422
20,300
31,943
PAGE 4
339.,07
11,881
22,046
36,415
26,230 28,486
21,574 24,594
2,452 2,653
2,703 3,081
13 LABOR (ACCTS. 911 -913 & 916) 4,925 5,349
14 SUPPLIES & EXPENSES (ACCTS. 911 -913 & 916) 3,152 3,593
15 ADMINISTRATIVE AND GENERAL
16 L4808 (ACCT. 920) 14,733 16,000
17 SUPPLIES & EXPENSES (ACCTS. 921 -932 & 426) 44,603 50,347
18 UNCDLLECTIBLE ACCOUNTS (ACCI. 904) 5,254 5,254
19 TOTAL OTHER OPERATION z MAINTENANCE EXP. -J- 219,237 -c 243,816
99,586
114,397
5,254
108,151
130,411
5,254
24 TOTAL OTHER OPERATION & MAINTENANCE EXP. 219,237 243,816
LINE
1 TAXES OTHER THAN INCOME TAXES
WITH REVENUES AT PRESENT RATES
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
TAXES OTHER THAN INCOME TAXES
PAGE 5
P R O F O R M A
AS OF AS OF
12 31 81 12 31 82
2 PROPERTY - RELATED TAXES 13,772 13,772
3 PAYROLL - RELATED TAXES 6,358 6,379
4 REVENUE- RELATED TAXES 401893 39.433
5 TOTAL TAXES OTHER THAN INCOME TAXES 61,023 59,584
6 TAXES OTHER THAN INCOME TAXES
WITH REVENUES AT PROPOSED RATES
7 PROPERTY RELATED TAXES
3 PAYROLL- RELATED TAXES
9 REVENUE RELATED TAXES
10 TOTAL TAXES OTHER THAN INCOME TAXES
11 REVENUE - RELATED EFFECTIVE TAX RATES
APPLICABLE 70 RESIDENTIAL AND COMMERCIAL
SALES REVENUES
12 STATE OCCUPATION TAX
13 CITY STREET AND ALLEY RENTAL
14 TOTAL REVENUE - RELATED TAX RATES
15 REVENUE TAX FACTOR FOR GAS COST ADJUSTMENT
BASED ON ADJUSTED TAX RATES AS OF 12 31 81
13,772 13,772
6,358 6,379
43,485 41,932
63,615 82,0183
1.01935 0.01935
0.01938 0.01938
0,03073 0.03873
1.04029
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
ADJUSTMENTS TO TEST YEAR END REVENUES AND EXPENSES
ADJUSTMENT NUNRER AND DESCRIPTION
1 ADJUST TEST YEAR SALES VOLUMES FOR WEATHER FROM
2,061 HDD ACTUAL TO 1,992 HDD NORMAL
RESIDENTIAL SALES VOLUME - ICE -2,210 0
COMMERCIAL SALES VOLUME - MCF -513 0
INDUSTRIAL & PUBLIC AUTH. SALES VOLUME - MCF -114 0
2 ADJUST NUMBER OF CUSTOMERS FOR GROWTH 08 DECLINE
TO END OF TEST YEAR 13 MATCH TO YEAR -END INVEST.
+RESIDENTIAL CUSTOMERS 199 0
COMMERCIAL CUSTOMERS -3 0
INDUSTRIAL R. PUBLIC AUTHORITY CUSTOMERS 0 0
3 ADJUST SALES VOLUMES FOR GROWTH OR DECLINE IN
NUMBER OF CUSTOMERS ACCORDING TO ADJUSTMENT 2
BASED ON WEATHER ADJUSTED CONSUMPTION PER COST.
RESIDENTIAL SALES VOLUME - MCF 1_1,180 0
COMMERCIAL SALES VOLUME - MCF -635 0
INDUSTRIAL & PUBLIC AUTH. SALES VOLUME - MCF 0 0
4 ADJUST OTHER SALES VOLUME TO ZERO TO REFLECT
NONRECURRING NATURE OF THIS TYPE OF SALE
OTHER SALES VOLUME - MCF
5 ADJUST RESIDENTIAL SALES VOLUME BY 2.7% AS OF
12 31 81 AND BY AN ADDITIONAL 5.5% AS OF
12 31 82 TO REFLECT DECLINING CONSUMPTION.
SIMILARLY ADJUST COMMERCIAL SALES VOLUME BY
1.07 AS OF 12 31 81 AND BY AN ADDITIONAL 1.9%
AS OF 12 31 82.
RESIDENTIAL SALES VOLUME - MCF 4,157 8,241
COMMERCIAL SALES VOLUME - MCF 338 636
6 ADJUST INDUSTRIAL SALES VOLUME FOR OTHER KNONN
CHANGES (CHANGES OTHER THAN WEATHER NORMAL-
IZATION SHO3N BY ADJUSTMENT 1)
INDUSTRIAL & PUBLIC AUTH. SALES VOLUME - MCF
7 ADJ?JST GAS SALES REVENUE TO ANNUALIZE WITH
PRESENT BURNER -TIP RATES INCLUDING GCA BASED ON
PURCHASE COSTS AT END OF TEST YEAR AND BASED ON
ACTUAL BILLING DATA AS ADJUSTED By ADJUSTMENTS
1 THROUGH 6
ADJUSTMENT
AS OF
12 31 31
PAGE 6
ADDITIONAL
ADJUSTMENT
AS OF
12 31 82
-191 0
0 0
RESIDENTIAL SALES REVENUE 166,774 - 34,996
COMMERCIAL SALES REVENUE 21,309 -2,598
INDUSTRIAL & PUI3L16 AUTH_. SALES REVENUE 27,899 0
OTHER SALES REVENUE -446 0
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
ADJUSTMENTS TO TEST YEAR REVENUES AND EXPENSES (CONT +D)
ADJUSTMENT NUMBER AND DESCRIPT[ON
3 ADJUST OTHER OPER. REV., SERV. CHARGES, LTC., TO
ANNUALIZE FOR ACTUAL CHANGES DURING THE TEST YEAR
OTHER OPERATING REVENUES - SERV. CHARGES, ETC.
9 ADJUST UNACCOUNTED -FOR GAS VOLUME TO
PERCENTAGE DURING TWELVE MONTHS ENDED
JUNE 307 1931 , & BASED ON VOLUMES AS ADJUSTED
BY ADJUSTMENTS 1, 3, 4, 5, AND 6
UNACCOUNTED -FOR VOLUME - MCF
10 ADJUST GAS PURCHASED EXPENSE TO ANNUALIZE PURCH.
COSTS AT END OF TEST YEAR AND BASED ON GAS
PURCHASED VOLUMES AS ADJUSTED BY ADJUSTMENTS 1,
3, 4, 5, 6, AND 9
11 ADJUST ADMIN. AND GENERAL EXPENSE TO ELIMINATE
RATE CASE EXPENSE RECORDED DURING THE TEST YEAR
AiDMINISTRATIVE AND GENERAL SUPPLIES & EXPENSES
13 ADJUST LABOR AND SUPPLIES & EXPENSES FOR GROWTH OR
DECLINE IN NUMBER OF CUSTOMERS ACCORDING TO
ADJUSTMENT 2 BASED ON ACTUAL TES[ YEAR EXPENSE
PER CUSTOMER - AFTER ADJUSTING ACCORDING TO
ADJUSTMENTS II & 12
DISTRIBUTION OPERATION LABOR
DISTRIBUTION OPERATION SUPPLIES & EXPENSES
DISTRIBUTION MAINTENANCE LABOR
DISTRIBUTION MAINTENANCE SUPPLIES 1 EXPENSES
CUSTOMER ACCOUNTS LABOR
CUSTOMER ACCOUNTS SUPPLIES B EXPENSES
CUSTOMER SERVICE & INFO. LABOR
CUSTOMER SERVICE 3 INFO. SUPPLIES & EXPENSES
SALES LABOR
SOLES SUPPLIES & EXPENSES
ADMINISTRATIVE AND GENERAL LABOR
ADMINISTRATIVE AND GENERAL SUPPLIES & EXPENSES
ADJUSTMENT
AS OF
12 31 41
PAGE 7
ADDITIONAL
ADJUSTMENT
AS OF
12 31 82
0 D
2,434 -15
RESIDENTIAL GAS PURCHASED EXPENSE 65,271 - 25,245
COMMERCIAL GAS PURCHASED EXPENSE 7,249 -2,025
INDUSTRIAL & PUBLIC AUTH. GAS PURCH. EXPENSE 27,380 0
OTHER SAS PURCHASED EXPENSE -553 0
COMPANY USE GAS PURCHASED EXPENSE 0 0
UNACCOUNTED -FOR GAS PURCHASED EXPENSE 2,072 -47
ADMINISTRATIVE AND GENERAL SUPPLIES & EXPENSES 3,425 0
12 ADJUST ADMIN. AND GENERAL EXPENSE TO INCLUDE
DONATIONS MADE DURINS THE TEST YEAR
594 0
2,003
657
1,315
2,011
1,697
1,358
159
171
319
198
055
2,407
ADJUSTMENTS TO TEST YEAR REVENUES AND EXPENSES (CDNT +D)
ADJUSTMENT NUMBER AND DESCRIPTION
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
14 ADJUST TEST YEAR LABOR BY 4.5% AS OF 12 31 31
AND 8Y AN ADDITIONAL 8.5% AS OF 12 31 82.
SIMILARLY ADJUST TEST YEAR SUPPLIES 6 EXPENSES
BY 7.5% 43 OF 12 31 81 AND BY AN ADDITIONAL
14.0% AS OF 12 31 92 - -- AFTER ADJUSTING
ACCORDING TO ADJUSTMENTS 11, 12, AND 13
DISTRIBUTION OPERATION LABOR
DISTRIBUTION OPERATION SUPPLIES & EXPENSES
DISTRIBUTION MAINTENANCE LABOR
DISTRIBUTION MAINTENAiNCE SUPPLIES 6 EXPENSES
CUSTOMER ACCOUNTS LABOR
CUSTOMER ACCOUNTS SUPPLIES & EXPENSES
CUSTOMER SERVICE & INFORMATION LABOR
CUSTOMER SERVICE y INFORMATLON SUP. & EXP.
SALES LABOR
SALES SUPPLIES & EXPENSES
ADMINISTRATIVE 6 GENERAL LABOR
ADMINISIRATIVE & GENERAL SUPPLIES & EXPENSES
15 ADJUST PAYROLL - RELATED TAXES
1982 FICA INCREASE, BASED ON
ADJUSTMENTS 13 & 14
PAYROLL- RELATED TAXES
16 ADJUST REVENUE- RELATED TAXES
APPLICABLE TO SALES REVENUES
ADJUSTMENT 7
REVENUE- RELATED TAXES
TO INCLUDE EFFECT OF
LABOR AS ADJUSTED BY
BASED ON TAX PERCENT
AS ADJUSTED BY
17 ADJUST DEBT INTEREST COST TO 10.651 AS OF
12 31 82 FROM 10.34% AS OF 12 31 81 BASED
ON REPRICING OF CURRENT MATURITIES
ADJUSTMENT
AS OF
12 31 81
1,333
727
874
2,229
1,130
1,505
106
133
212
220
634
3,112
240
21,234
PAGE 8
430111084L
ADJUSTMENT
AS OF
12 31 82
2,661
1,459
1,746
4,472
2,256
3,020
211
378
424
441
1,267
6,244
21
-1,460
DEBT COST 0 848
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
CALCULATION OF FEDERAL INCOME TAXES
9 CALCULATION OF FEDERAL INCOME TAXES
WIT9 REVENUES & INCOME AT PROPOSED RATES
AGE 9
P R O F O R M A
AS OF AS OF
LINE 12 31 81 12 31 32
1 CALCULATION OF FEDERAL .INCOME TAXES
WITH REVENUES 8 INCOME AT PRESENT RATES
2 N=T OPERATING INCOME BEFORE FIT 65,173 32,656
3 LLSS COST OF DEBT 28,277 29,125
4 LESS CAP.ITALIZED OVERHEADS 6 TAXES 8,066 8,066
5 TAXABLE INCOME 28,830 -4,535
6 TAX AT 463 OF TAXABLE INCOME /1/ 13,262 0
7 SURTAX CREDIT 1I 11
TOTAL FEDERAL INCOME TAXES 13,231 0
10 NET OPERATING INCOME BEFORE FIT 129,497 94,674
11 LESS COST OF OEBT 28,277 291125
12 LESS CAPITALIZED OVERHEADS 1 TAXES 8,065 3,065
13 TAXABLE INCOME 93,154 57,483
14 TAX AT 461 OF TAXABLE INCOME /.1/ 42,851 25,442
15 SURTAX CREDIT 11 11
1G TOTAL FEDERAL INCOME TAXES 42,840 26,431
/1/ WHERE APPLICABLE NEGATIVE TAX SET TO ZERO
LINE
IRET!URN PROVIDED BY PRESENT RATES
4 RETSJRN PROVIDED HY PROPOSED RATES
5 NET OPERATING INCOME /RETURN
7 INCOME DEFICIENCY AT PRESENT RATES
10 INCOME DEFICIENCY
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
RETURN PROVIDED BY PRESENT RATES AND HY PROPOSED RATES
AND ,INCOME DEFICIENCY AT PRESENT RATES
2 NET OPERATING INCOME /RETURN 51,922 32,656
3 PERCENT RETURN ON ADJUSTED VALUE RATE BASE 6 .92 4.35
6 PERCENT RETURN ON ADJUSTED VALUE RATE BASE
8 R_OUIRED RETURN /NET OPERATING .INCOME
3 LESS: NET OPERATING INCOME
P R O F 0 R M A
AS OF A3 OF
12 31 81 12 31 82
86, 657
11.55
86,557
51,922
PAGE 10
58,243
9.10
87,505
32,656
34,735 54,849
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
RETURN REQUIREMENT INCLUDED IN PROPOSED RATES AS OF 12 31 111
AS OF
LINE
12 31 81
1 RATE SASE BY KIND OF CAPITAL
9 RETURN REQUIREMENT BASED ON COST OF INVESTED CAPITAL
AND RETURN ON ADJUSTED VALUE INCREMENT
ERODED RETURN PROVIDED BY PROPOSED RATES AS OF 12 31 82
17 TOTAL RETURN /NET OPERATING INCOME PROVIDED
13 LESS: DEBT COST (10.65%)
19 LESS: PREFERRED STOCK COST (8.991)
PAGE 11
2 INVESTED CAPITAL
3 DEBT (45.9% OF LINE 6) 273.474
4 ;PREFERRED STOCK (5.21 OF LINE 6) 30.982
5 COMMON EQUITY AT BOOK VALUE (48.9% OF LINE 6) 291,348
6 TOTAL INVESTED CAPITAL (PAGE 13) 595,803
7 ADJUSTED VALUE INCREMENT (LINE 8 LESS LINE 6) 154,512
8 TOTAL ADJUSTED VALUE RATE BASE (PAGE 15) 750,315
. 10 COST OF INVESTED CAPITAL
11 DEHT COST (15.34%) 29,277
12 PREFERRED STOCK COST (8.99 %) 2,785
13 COMMON EQUITY COST AT HOOK VALUE (18.00 %) 52,443
14 TOTAL COST OF INVESTED CAPITAL (14.02%) 4:3,505
15 RETURN ON ADJUSTED VALUE INCREMENT (2.04X) 3,152
16 TOTAL RETURN REQUIREMENT ON ADJUSTED VALUE
RATE SASE (11.35:) 36,657
AS OF
12 31 82
68,243
29.125
2 ,785
20 RETURN ON COMMON EQUITY AT BOOK !VALUE (12.47X1 35,333
21 RETURN ON ADJUSTED VALUE INCREMENT (0.00 %) 0
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
EROSION OF RETURN DUE TO DECLINING CONSUMPTION, INCREASING OPERATING EXPENSES
AND PROJECTED DEBT COST INCREASE
DURING TWELVE MONTHS ENDING 12 31 R2
LINE
1 EROSION DUE TO DECLINING CONSUMPTION
2 RESIDENTIAL GAS SALES REVENUE*
3 COMMERCIAL GAS SALES REVENUE*
5 RESIDENTIAL GAS PURCH. EXP.
6 CG =;MMERCIAL GAS PURCH_ EXP.
7 UNACCOUNTED -FOR GAS PURCH. EXP.
S REVENUE- RELATED TAXES*
9 TOTAL CHANGE IN EXPENSES
10 EROSION OF NET OPER. .INC. 3FIT
11 EROSION DUE TO INCR. OPER. EXP.
12 LABOR EXPENSE
13 SUPPLIES .3 EXPENSES
14 PAYROLL - RELATED TAXES
15 TOTAL CHANGE IN EXPENSES
16 EROSION OF NET OPER. INC, BFIT
17 EROSION OF NET OPER. INC. /RETURN
ON RATE BASE DUE TO ABOVE CHANGES
21 EROSION OF RET. ON COMMON EQUITY
INCL. EFFECT OF DEBT COST INCR.
24 EROSION Of RET. ON COMMON EQUITY
P R O F O R M A
AS OF AS OF
12 31 81 12 31 82
841,562
164,989
4 TOTAL EROSION OF REVENUE* - 409093
477,183
106,5'35
1,318
43,485
99,586
114,397
6,358
804,338
162,120
450,938
104,'570
1,271
41,332
108,151
130,411
6,379
PAGE 12
TWELVE
MONTHS
EROSION
- 379224
-2,869
- 26,245
-2,025
-47
-1,553
- 29,870
- 10,223
8,565
169014
21
- ----------
-
- 24,600
18 EROSION OF NET OPER. INC. 3FIT - 34,823
19 CHANGE IN FEDERAL INCOME TAXES= - 159409
20 EROSION OF NET OPER. INC. /RETURN - 19,414
22 EROSION OF NET OPER. INC. (L.20) - 18,414
23 EROSION DUE TO DEBT COST INCR. -848
- 19,262
*REVENUE, REVENUE - RELATED TAXES, AND = EDERAL INCOME TAXES ARE STATED ON THE
BASIS OF PROPOSED RATES, AS THOUGH THE PROPOSED RATES WERE EFFECTIVE
AS OF 12 31 'U.
LINE
PLANT IN SERVICE AT ORIGINAL COST LESS DEPRECIATION AND INVESTED CAPITAL
AS OF 12 31 81
1 PLANT IN SERVICE (ACCT)
20 INVESTMENT ADDITIONS
21 CONST WORK IN PROGRESS (107)
22 RETIRE WORK IN PROG (10825)
23 WORKING CAPITAL
24 CASH REQUIREMENT FOR O &M EXP
25 MATERIALS 6 SUPPLIES (154)
25 PREPAYMENTS (165)
27 TOTAL INVESTMENT ADDITIONS
28 INVESTMENT DEDUCTIONS
29 CUSTOMER DEPOSITS (235)
30 CUST ADVANCES FOR CUNSTR (252)
31 TOTAL I,NVE.STMENT DEDUCTIONS
32 TOTAL INVESTED CAPITAL
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
ORIGINAL
COST
PAGE 13
ORIGINAL COST
ACCUMULATED LESS
DEPRECIATION DEPRECIATION
2 DISTRIBUTION PLANT
3 LAND (37401) 0 0 0
4 LAND RIGHTS (37402) 2,042 396 1,646
5 STRUCTURES & IMPROVEMENTS (375) 229 45 134
6 MAINS (376) 803,875 155,812 644,063
7 868 STA EQUIP- GENERAL (379) 8,525 1,561 6,984
9 M5R STA EQUIP -CITY GATE (379) 1,464 234 1,180
9 SERVICES (330) 141,749 27,505 114,243
10 METERS (381) 72,473 14,063 58,410
11 METER INSTALLATIONS (382) 22,251 4,318 17,933
12 HOUSE REGULATORS (383) 13,101 3,707 15,394
13 HOUSE REGULATOR -INSTL (394) 2,583 501 2,082
14 OTHER PROP ON CUST P8EM (386) 0 0 D
15 OFF FURN 5 EQUIP (38701) 0 0 0
16 OTHER EQUIPMENT (38702) 397 75 312
17 TOTAL DISTRIBUTION PLANT 1,074,679 • 208,268 866,411
18 GENERAL PLANT ALLOCATED 77,970 32,152 45,918
19 TOTAL PLANT IN SERVICE 1,152,649 240,420 9129229
3,989
44
27,405
6,070
3,511
41,019
35,226
322,219
357,445
595,803
ADJUSTMENT
REPRODUCTION FOR AGE l
LINE COST NEW (RCN) CONDITION
LONE STAR GAS COMPANY
, ROUND ROCK DISTRIBUTION SYSTEM
PLANT REPRODUCTION COST NEW LESS ADJUSTMENT FOR ASE AND CONDITION
ANJ TOTAL RCN LESS ADJUSTMENT AS OF 12 31 R1
1 PLANT IN SERVICE (ACCT)
2 DISTRIBUTION PLANT
3 LAND (37401) 0 0 0
4 LAND RIGHTS (37402) 2,042 396 1,646
5 STRUCTURES & IMPROVE_MENTS (375) 229 45 184
6 MAINS (376) 1,219,457 184,351 1,035,106
7 M &R STA EQUIP- GENERAL (373) 16,124 5,673 10,451
0 MAO STA EQUIP -CITY GATE (379) 2,263 400 1,860
9 SERVICES (380) 355,176 151,858 203,318
10 METERS (381) 153,212 22,982 130,230
11 METER INSTALLATIONS (382) 36,387 3,431 32,956
12 HOUSE REGULATORS (383) 28,858 4,329 24,529
13 HOUSE REGULATOR TNSTL (384) 4,418 657 •3,761
14 OTHER PROP ON CUST PKEM (386) 0 0 0
15 OFF FURN 8 EQUIP (38701) 0 0 0
16 OTHER EQUIPMENT (38702) 387 75 312
17 TOTAL DISTRIBUTION PLANT 1,818,558 374,205 1,444,353
18 GENERAL PLANT ALLOCATED 77,970 32,152 45,818
19 TOTAL PLANT IN SERVICE 1,896,528 406,357 1,490,171
20 PLUS: INVEST ADDNS PER PAGE 13
21 LESS: INVEST DEDUCT PER PAGE 13
22 TOTAL RCN LESS ADJUSTMENT
PAGE 14
RCN LESS
ADJUSTMENT
41,019
357,445
1,173,745
LINE
1 1595,803 INVESTED CAPITAL PER PAGE L3 AT 60% WEIGHT 357,482
2 11,173,745 RCN LESS ADJUSTMENT PER PAGE 14 AT 401 WEIGHT 467,498
3 LESS: UNRESIDRED POST -PURA INVESTMENT TAX CREDITS 74,209
4 LESS: ACCUMULATED DFIT ATTRIBUTABLE TO PLANT 2,456
5 TOTAL ADJUSTED VALUE RATE BASE
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
ADJUSTED VALUE RATE BASE AS OF 12 31 81
?AGE 15
755,315
CALCULATION OF RESIDENTIAL AND COMMERCIAL GAS SALES REVENUE AT PROPOSED RATES
LINE
1 RESTUENTIAL GAS SALES REVENUE
2
CUSTOMER CHARGE REVENUE
3 CUSTOMERS - AVERAGE BILLINGS PER MONTH 2,746 2,746
4 SILLS PER YEAR (LINE 3 X 12 MONTHS) 32,952 32,952
5 CUSTOMER CHARGE - 1 5.0000 5.0000
5 CUSTOMER CHARGE REVENUE 164,760 164,760
7 WINTER MONTHS VOLUME CHARGE REVENUE
5 WINTER MONTHS SALES VOLUME - MCF 114,508 103,210
9 WINTER MONTHS VOLUME CHARGE - $ PER MCF 4.5759 4.5759
10 WINTER MONTHS VOLUME CHARGE REVENUE 523,177 495,158
11 SUMMER MONTHS VOLUME CHARGE REVENUE
12 SUMMER MONTHS SALES VOLUME - MCF 35,328 33,385
13 SUMMER MONTHS VOLUME CHARGE - 1 PER MCF 4.3259 4.3259
14 SUMMER MONTHS VOLUME CHARGE REVENUE 152,325 144,420
15 TOTAL RESIDENTIAL GAS SALES REVENUE 841,562 804,338
16 COMMERCIAL GAS SALES REVENUE
LONE STAR GAS COMPANY
ROUND ROCK DISTRIDUTTON SYSTEM
PAGE 16
P R O F O R M A
AS OF AS OF
12 31 81 12 31 82
17 CUSTOMER CHARGE REVENUE
18 CUSTOMERS - AVERAGE BILLINGS PER MONTH 145 146
19 SILLS PER YEAR (LINE 18 5 12 MONTHS) 1,752 1,752
20 CUSTOMER CHARGE - b 8.0000 8.0800
21 CUSTOMER CHARGE REVENUE 14,016 14,016
22 WINTER MONTHS VOLUME CHARGE REVENUE
23 WINTER MONTHS SALES VOLUME - MCF 24,725 24,255
24 WINTER MONTHS VOLUME CHARGE - 1 PER MCF 4.5759 4.5759
23 WINTER MONTHS VOLUME CHARGE REVENUE 113,139 110,988
25 SUMMER MONTHS VOLUME CHARGE REVENUE
27 SUMMER MONTHS SALES VOLUME - MCF
28 SUMMER MONTHS VOLUME CHARGE - 1 PER MCF
29 SUMMER MONTHS VOLUME CHARGE REVENUE
30 TOTAL COMMERCIAL GAS SALES REVENUE
8,746 8,580
4.3259 4.3259
37,834 31,116
164,989 162,120
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTr_0N SYSTEM
PROPOSED RATES APPLICABLE TO RESIDENTIAL AND COMMERCIAL GAS SERVICE
RATES APPLICABLE TO RESIDENTIAL AND COMMERCIAL CAS SERVICE
The following rates a e the maximum applicable to residential and commercial consumers s oe
meter per month or for any part ofa nth t s
which g s., able a the s �_
e
location. Summer rates shall 1 applicable between r_'nemeter r reading dates in May and
October. :lintel rates shall be applicable ac all other times.
Residential: Customer Charge
All Consumption
Commercial: Customer Charge
A11 Consumption
Pario 3 Line 26 For Volume Factor
See Pace o line 1; [or Tax Factor
Winter
5.0000
4.5759 Per Mcf
If the r-e period is less than 28 days, the customer charge is .786 times the
number of days service.
Winter
8.0000
4.5759 Per ?1c`
5.0000
2.1259 Per Mcf
Summer
8.0100
4.3259 Per Mcf
if the s e period is less than 28 days, the customer charge is .2857 times the
number of days service.
Bills are due and payable when rendered and must be paid within teen days from monthly bill-
ing date.
CAS COST ADJUSTMENT
Each -monthly bill at the above rates shall be adjusted for as gas cost as follows:
(1) The city gate rase increase or decrease applicable to c en005±14ing month residential
and commercial sales shall he estimated to the nearest 0.0001 per Mcf based upon:
(a) A volume of 1.0017 1/ determined in establishing the above rates
'actor 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 volumes purchased Luring the
current calendar month, expressed to the nearest 0.0001 per ' Sc- (shown below
as "Re ").
( c ) The base city gate rate of 3.1847 ? r Mcf.
(2) Correction of the estimated adjustment determined by Item (1) above shall be included
as art of the adjustment for the second Following billing month. The correcting tactor
(shown below as "C ") shall he expressed to the nearest 0.0001 per Mcf. based upon:
(a) The corrected adjustment amount based upon the actual city gate rate, less
The a
(b) - estimated adjustment billed under Item (1) divided by
`
(c) Distribution system residential and commercial sales Mcf recorded r [he Company's
books during the' prior year for the month that the correction rs includes as part
of the adjustment.
(3) The adjustment determined by Item (1) and Item (2) above shall be multiplied by a
_actor of 1.04029 2/ to include street and alley rental and state occupation tax dug
Co ir--ceasing ur decreasing Company revenues .ender this gas cost adjustment provision..
In summary, the gas cosu adjustment (00A) shall be determined to the nearest 0.0001 per
Mcf by Item (1), Ttem (2), and Item (3) as follows:
= (1) + Item (2)1 s Item (3)
C0A - (1.0017) (Re - 3.1847) + C] S 1.04029
TAX. ADJCI:11E0'I'
The tax adjustment shall be .am ant equivalenc 00 the proportionate par, of any n w tax
�n � mortron
or increased tax, ur any other governmental imposition, Intel, _. r v_ (except state,
county, city and s, ial district ndd taxes and tuxes on _ income.) levied, assessed
or imposed subsequent to „aac : 1, 1982, upon or allocable to the Company's distri bution
operations, by any new or amended law, ordinance or contract.
PAGE 17
(1) Reconnect Charge
LONE STAR GAS COMPANY
ROUND ROCK DISTRIBUTION SYSTEM
SCHEDULE OF SERVICE CHARGES
In addition to the charges and rates set out above, the Company shall
charge and collect as a reconnect charge:
Schedule Charge
8 A.M. to 5 P.M. Monday through Friday
5 P.M. to 8 A.M. Monday through Friday
Saturdays, Sundays and Holidays
for each reconnection or rei.nauguration of gas service, where service
has been discontinued at the same premises for any reason, with the
following exceptions.
(a) For a builder who uses gas temporarily during construction or for
display purposes.
(b) For the first occupant of the premises.
(c) Whenever gas service has been temporarily interrupted because of
system outage, service work or appliance installation done by
Company; or
(d) For any reason deemed necessary for Company operations.
(2) Returned Check Charges
$20.00
30.00
30.00
A returned check handling charge of $5 is made for each check returned
to the Company for reasons of non - sufficient funds, account closed,
payment withheld, invalid signature, or improper preparation.
PACE 18