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O-87-2271 - 2/26/1987ORDINANCE NO. 2271 AN ORDINANCE FIXING AND DETERMINING THE GENERAL SERVICE RATE TO BE CHARGED FOR SALES OF NATURAL GAS TO RESIDENTIAL AND COMMERCIAL CONSUMERS IN THE CITY OF ROUND ROCK, WILLIAMSON COUNTY, TEXAS; PROVIDING FOR THE MANNER IN WHICH SUCH RATE MAY BE CHANGED, ADJUSTED, AND AMENDED; AND PROVIDING FOR THE RECOVERY OF ANY CURRENT AND UNRECOVERED PRIOR RATE CASE EXPENSE, PROVIDING FOR A SCHEDULE OF SERVICE CHARGES, AND PROVIDING FOR A MAIN LINE EXTENSION RATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK, TEXAS: SECTION 1. Effective with gas bills rendered on and after thirty (30) days from the final date of passage of this ordinance, the maximum general service rate for sales of natural gas rendered to residential and commercial consumers within the city limits of Round Rock, Texas, by Lone Star Gas Company, a division of ENSERCH CORPORATION, a Texas Corporation, its successors and assigns, is hereby fixed and determined as set forth in Item A, in the Attachment hereto which is incorporated herein. SECTION 2. The residential and commercial rates set forth above shall be adjusted upward or downward from a base of $4.0200 per Mcf by a Gas Cost Adjustment Factor expressed as an amount per thousand cubic feet (Mcf) of natural gas for changes in the intracompany city gate rate charge as authorized by the Railroad Commission of Texas or other regulatory body having jurisdiction for gas delivered to the Round Rock distribution system, according to Item B, in the Attachment hereto which is incorporated herein. SECTION 3. Company shall also receive tax adjustments according to Item C, in the Attachment hereto which is incorporated herein. SECTION 4. In addition to the aforesaid rates, Company shall have the right to collect such reasonable charges as are necessary to conduct its business and to carry out its reasonable rules and regulations in effect. The charges set forth in Items D and E, in the attachment hereto which is incorporated herein, are approved. Services for which no charge is set out may be performed and charged for by Company at a level established by the normal forces of competition. SECTION 5. 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 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. When a surcharge is applicable, monthly status reports will be provided to account for the collections. SECTION 6. The rates set forth in this ordinance may be changed and amended by either the City or Company in the manner provided by law. Service hereunder is subject to the orders of regulatory bodies having jurisdiction, and to the Company's Rules and Regulations currently on file in the Company's office. SECTION 7. It is hereby found and determined that the meeting at which this ordinance was passed was open to the public, as required by Texas law, and that advance public notice of the time, place and purpose of said meeting was given. PASS D AND APPROVED on this the day of ;► , A.D. 198 1 . FINALLY PASSED ANIS PPROVED on second reading on this the ah day of 198 7 -2a .44 Mayor City of Round Rock, Texas ATTEST: STATE OF TEXAS COUNTY OF WILLIAMSON I'' Secretary of the City of Texas, hereby certify that the above and foregoing is a truentyand correct copy of an ordinance passed by the on first reading on the day of , 198 , and was finall by the __Y passed and approved theon second and final reading on day of , 198 , all as appears of record in the Minutes of said Book , Page , in WITNESS MY HAND AND SEAL OF SAID CITY, this the of , A.D. 198 day Secretary City of , Texas ATTACHMENT TO ORDINANCE NO. 5v71/7/ CITY OF ROUND ROCK, TEXAS LONE STAR GAS COMPANY TARIFFS AND SCHEDULES Item 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 (five months). Winter rates shall be applicable at all other times. Residential: Winter Summer Customer Charge $ 6.50 $ 4.50 All Consumption @ 6.0350 Per Mcf 5.6850 Per Mcf If the service period is less than 28 days in the winter months, the winter customer charge is $.2321 times the number of days service. If the service period is less than 28 days in the summer months, the summer customer charge is $.1607 times the number of days service. Commercial: Winter Summer Customer Charge $10.5000 $6.5000 All Consumption @ 6.0350 Per Mcf 5.6850 Per Mcf If the service period is less than 28 days in the winter months, the winter customer charge is $.3750 times the number of days service. If the service period is less than 28 days in the summer months, the summer customer charge is $.2321 times the number of days service. Bills are due and payable when rendered and must be paid within ten days from the monthly billing date. Item B. Gas Cost Adjustment Each monthly bill at the above rate 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 estimated to the nearest $0.0001 per Mcf based upon: (a) A volume factor of 1.000 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 $4.02 per Mcf. (2) Correction of the estimated adjustment determined by Item B (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 B (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 B (1) and Item B (2) above shall be multiplied by a tax factor of 1.0408 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 B (1), Item B (2) and Item B (3) as follows: GCA = [ (Item B) (1) + Item B (2) ] x Item B (3) GCA = [(1.0000) (Re - $ 4.0200) + C] x 1.04080 Item 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, 1987, upon or allocable to the Company's distribution operations, by any new or amended law, ordinance or contract. Item D. Schedule of Service Charges (1) Reconnect Charge In addition to the charges and rates set out above, the Company shall charge and collect the sum of: 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 $25.00 40.00 40.00 A reconnect charge is the charge 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 $7.50 is made for each check returned to the Company for reasons of non -sufficient funds, account closed, payment withheld, invalid signature, or improper preparation. (3) Collection Charge A charge of $7.00 shall be made for each instance when it is necessary for a company employee to go to a customer's residence or place of business in order to collect amounts owed the Company for gas service previously rendered. This charge shall not apply if service is terminated at the time of the collection action. This charge shall apply to only one trip on the same amount owed. Item E. Main Line Extension Rate The charge for extending mains beyond the free limit established by Lone Star Gas Company, or any free limit established by franchise, for residential customers shall be the lesser of: (a) the system-wide average cost of construction, including all overheads, for the prior fiscal year or (b) the adjusted actual cost as determined by applying the latest Handy-Whitman Index to the 1975 actual base cost of $2.94. The Company shall file the calculation of such charge with the city as soon as sufficient data is available each fiscal year. Extension to commercial and industrial customers shall be based on actual cost per foot. DATE: February 24, 1987 SUBJECT: Council Agenda, February 26, 1987 ITEM: 12C - Consider an ordinance concerning a rate increase request by Lone Star Gas Company. (Second Reading) Don Wolf and Searcy Willis will be prepared to address this item during the meeting.