ORD 1999-05TOWN OF TROPHY CLUB, TEXAS
ORDINANCE NO. 1999-05
AN ORDINANCE OF THE TOWN OF. TROPHY CLUB, TEXAS
FINDING, AFTER REASONABLE NOTICE AND HEARING, THAT
LONE STAR GAS COMPANY'S RATES AND CHARGES WITHIN THE
TOWN SHOULD BE CHANGED; DETERMINING JUST AND
REASONABLE RATES; REJECTING ALL PROPOSED AUTOMATIC
ADJUSTMENT CLAUSES; PROVIDING FOR RECOVERY OF RATE
CASE EXPENSES; ADOPTING A MOST FAVORED NATIONS CLAUSE;
PRESERVING REGULATORY RIGHTS OF THE TOWN; ORDERING
THAT THIS ORDINANCE BE SERVED ON LONE STAR GAS
COMPANY; PROVIDING FOR REPEAL OF CONFLICTING
ORDINANCES; PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Town of Trophy Club ("Town"), acting as a regulatory authority, has
previously suspended the effective date of Lone Star Gas Company's ("Lone Star") application to
increase rates in the Town in order to study the reasonableness of that application;
WHEREAS, the Town of Trophy Club, considered the Company's application and a
report from the consultants who were retained by the steering committee of Cities on the Lone
Star Mid -Cities Distribution System to evaluate the merits of Lone Star's application in a
reasonably notice public hearing;
WHEREAS, the Town has determined that the Company's rates within the Town should
be changed and that the Company's application should be granted, in part, and denied, in part;
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE
TOWN OF TROPHY CLUB, TEXAS:
Section 1. That the existing rates and charges of Lone Star are hereby found, after
reasonable notice and hearing, to be unreasonable and shall be changed as hereinafter ordered.
The changed rates resulting from this Ordinance are hereby determined to be just and reasonable
rates to be observed and in force within the Town.
Section 2. That it is hereby ordered that Lone Star's rates in the Town be set on the
basis of a 2.94% increase in overall system average revenues with a 3.98% increase in system
average residential revenues and a 1.39% increase in system average commercial revenues on the
Mid -Cities Distribution System. The increase in system average revenues also includes a
$26,652 increase in other revenue (associated with service charges) over test year levels.
Revenues from the Town of Trophy Club are authorized to change from test year levels,
exclusive of increases in service charges, in the following manner: increase $5,462 for residential
customers and decrease S313 for commercial customers. The residential and commercial rates
resulting from this Ordinance shall be adjusted upward or downward from a base per Mcf city
gate rate set by the Railroad Commission of Texas by a Gas Cost Adjustment Factor authorized
by the Railroad Commission of Texas.
ORDINANCE—Page I
Document 4 805160.2
Section 3. The Weather Normalization, Plant Investment and Cost of Service
automatic adjustment clauses proposed by Lone Star are unreasonable and are specifically
rejected. The Company is authorized to adjust monthly bills to include any municipal franchise
fee or street and alley assessment now or hereafter in effect in this Town to the extent that such
municipal franchise fee or street and alley assessment is at a rate higher than 3% of the
Company's gross receipts.
Section 4. That current residential and commercial monthly customer charges of
55.00 and $12.00 are reasonable and shall not be changed.
Section 5. That the miscellaneous service changes and line extension charges
reflected in Exhibit A are reasonable and are hereby adopted.
Section 6. That approval of a most favored nations clause is reasonable and in the
public interest and Lone Star is ordered to provide residents of the Town of Trophy Club the
benefits of any agreement or order applicable elsewhere in the Mid -Cities Distribution System.
Section 7. Lone Star shall file with the Town, no later than the effective date of the
changed rates ordered herein, revised Tariffs and Schedules, together with rate design
workpapers and supporting data as requested, setting forth the rates, tariffs, and changes based
upon the increases and changes prescribed herein. Such Tariffs and Schedules may be modified
or amended by the Town Council to comply with the provisions of this Ordinance within twenty
(20) days from the date of filing with the Town, otherwise the same shall be considered approved
as filed.
Section 8. That the fees and expenses associated with the Town retaining counsel and
consultants to investigate the Company's application are reasonable and are to be paid by Lone
Star and recovered from ratepayers through a system -wide surcharge spread over a six month
period. The Company shall provide a monthly accounting to the Town showing, by months, the
amount recovered through the surcharge.
Section 9. That the rate changes ordered herein become effective for billing on May
2, 1999.
Section 10. This Ordinance shall be served on Lone Star by U.S. Mail and to the
Company's authorized representative, Mary Jean. Moloney, TU Electric/Lone Star Gas, Texas
Utilities Companies, 100 West Abram, Arlington, Texas 76010.
Section 11. That nothing contained in this Ordinance shall be construed now or
hereafter in limiting or modifying, in any manner, the right and power of the Town under law to
regulate the rates and changes of Lone Star.
Section 12. All ordinances, resolutions, or parts thereof, in conflict with this
Ordinance are repealed to the extent of such conflict.
Section 13. 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.
ORDINANCE — Pagc 2
ducumans 4 A051603
Section 1.4. That this Ordinance shall be effective immediately upon passage and
approval, and it is so ordained.
PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN OF
TROPHY CLUB, TEXAS, this the 6th day of April '1999.
ayor
Town of Trophy Club, Texas
ATTEST
-05t r6
Town Secretary
Town of Trophy Club, Texas
[SEAL]
APPRP36ED AS TO FO
ToiWn Attorney
Town of Trophy CIub, Texas
OMINANCE — Page 3
Ducumcn # 805160.2