05-96-Ordinance-Adding a Service Adjustment Clause for Lone Star Gas-04/15/1996AN ORDINANCE MODIFYING THE COST OF SERVICE ADJUSTMENT
CLAUSE FOR RESIDENTIAL AND COMMERCIAL CONSUMERS IN THE
CITY OF SANGER, DENTON COUNTY, TEXAS: MODIFYING THE MAIN
LINE EXTENSION RATE AND PROPOSING A WEATHER
NORMALIZATION ADJUSTMENT CLAUSE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS:
SECTION 1. The residential and commercial rates established by Ordinance dated
June 3, 1985 shall be adjusted for increases or decreases in the cost per customer of
providing gas service according to Item A in the Attachment hereto which is incorporated
herein.
SECTION 2. The mainline extension rate established by Ordinance dated June 3,
1985 shall be amended to read in accordance with Item B in the Attachment hereto which
is incorporated herein.
SECTION 3. The residential and commercial rates established by Ordinance dated
June 3, 1985 shall be adjusted upward or downward for variations in the heating degree
days according to Item C in the Attachment hereto which is incorporated herein.
SECTION 4. 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 5. This ordinance is effective with bills rendered on and after the date of
final passage of this ordinance.
SECTION 6. It is hereby found and determined that said 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.
PASSED AND APPROVED on this the 15tnday of April , A. D.,
ATTEST:
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Mayor Nel A trong
City of Sanger, Texas
ATTACHMENT TO ORDINANCE NO. 05-96
CITY OF SANGER, TEXAS
LONE STAR GAS COMPANY
TARIFFS & SCHEDULES
ITEM A. COST OF SERVICE ADJUSTMENT
The cost of service adjustment clause authorized in the rate ordinance dated
June 3, 1985 will continue in effect as adjusted to reflect the application of
the limitation factor based on changes in the Implicit Price Deflator of the
Gross Domestic Product to both increases and decreases in the cost of
service per customer and the carry forward of any increase or decrease in
excess of the amount allowed by the operation of the limitation factor to the
next year, with the total adjustment for the next year subject to the limitation
factor. The customer charge portion of each monthly bill for residential and
commercial gas service shall be adjusted according to the terms of the
revised cost of service adjustment clause as follows:
(1) Effective with bills rendered for the month of May 1996 and annually
effective each May thereafter, the residential and commercial monthly
rate shall be adjusted for increases or decreases in the cost per
customer of providing gas service (including depreciation but
excluding cost of gas, gross receipts taxes, income taxes, and return)
for the previous year ended December 31 above or below such cost
incurred in the second prior calendar year. These annual adjustments
shall be cumulative. The operating expenses used in calculating the
adjustments shall be for the applicable distribution system as reported
to the Railroad Commission of Texas in the annual report of Lone Star
Gas Company, a Division of ENSERCH Corporation. Should the
percentage change in cost of service per customer of providing gas
service plus or minus the effect of a carry forward from the prior year
exceed the rate of change in the Implicit Price Deflator of the Gross
Domestic Product over the same period of time, the adjustment will be
limited to a maximum change computed by multiplying the cost of
service per customer of providing gas service in the second prior
calendar year ended December 31 by the rate of change in the
Implicit Price Deflator of the Gross Domestic Product. Any change in
the cost of service per customer of providing gas service subject to
the above limitation shall be included in the determination of the cost
of service adjustment to be effective in the succeeding May billing
month, however the maximum percentage change for the succeeding
1
year will continue to be limited to the percentage change in the
Implicit Price Deflator of the Gross Domestic Product. The adjustment
per bill shall be rounded to the nearest whole cent.
(2) The adjustment determined by (1) above shall be multiplied by a tax
factor to include street and alley rental and state occupation tax due
to the increasing or decreasing Company revenues under this cost of
service adjustment provision.
ITEM B. MAIN LINE EXTENSION RATE
The charge for extending mains beyond the free limit established by
Franchise for residential, commercial, and industrial customers shall be
based on the actual cost per foot of the extension.
ITEM C. Weather Normalization Adjustment:
Effective with bills rendered during the October 1996 through May 1997
billing months, and annually thereafter for the October through May billing
months, the above residential and commercial consumption rates for gas
service, as adjusted, shall be subject to a weather normalization adjustment
each billing cycle to reflect the impact of variations in the actual heating
degree days during the period included in the billing cycle from the normal
level of heating degree days during the period included in the billing cycle.
The weather normalization adjustment will be implemented on a per Mcf
basis and will be applicable to the heating load of each customer during the
period included in the billing cycle. It will be determined separately for
residential and commercial customers based on heating degree data
recorded by the D/FW Airport weather station. The adjustment to be made
for each billing cycle will be calculated according to the following formula:
NDD-ADD
WNA = x M x AHL
ADD
Where: WNA = Weather normalization adjustment
NDD = Normal heating degree days during the
period covered by the billing cycle
ADD = Actual heating degree days during the
period covered by the billing cycle
M = Weighted average margin per Mcf
included in the commodity portion of the
rates effective during the October through
May billing months
K
AHL = Actual heating load per customer
The heating load to which the weather normalization adjustment is to be
applied for residential and commercial customers is determined by
subtracting the base load for the customer from the total volume being billed
to the customer. The base load of a customer is the average level of
nonheating consumption.
The weather normalization adjustment is subject to a 50% limitation factor
based on temperatures being fifty percent warmer or colder than normal.
The weather normalization adjustment will be calculated to the nearest
$.0001 per Mcf.
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