ORD 1994-19TOWN OF TROPHY CLUB, TEXAS
ORDINANCE NO. 4 -1 9
AN ORDINANCE OF THE TOWN OF TROPHY CLUB,
TEXAS REVISING THE RATES OF LONE STAR GAS
COMPANY IN THE TOWN; PROVIDING FOR
CONDITIONS AND REPEAL OF CONFLICTING
ORDINANCES; PROVIDING A SEVERABILITY CLAUSE;
PROVIDING A SAVINGS CLAUSE; PROVIDING AN
EFFECTIVE DATE.
WHEREAS, on May 11, 1994, Lone Star Gas Company ("LSGC") filed with the
Town of Trophy Club, Texas (the "Town") a request for an increase in gas utility rates to
be charged within Town in the amount of $2,011,101 per annum within the Mid -Cities
Distribution System; and
WHEREAS, the Town, having the suspended the effective date of such proposed
increase for a period of time necessary and authorized bylaw, including time for the
continuation of a hearing in progress pursuant to Section 5.08(d) of the Gas Utility
Regulatory Act ("GURA"), or alternatively, pursuant to its authority under Section 5.07 of
GURA, and having considered the same after reasonable notice and public hearing, and
findings as to the unreasonableness of the current rates, is of the opinion and finds that the
rates of LSGC should be adjusted; and
NOW THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE
CITY OF TROPHY CLUB, TEXAS:
Section 1. The above and foregoing premises are true and correct and are
incorporated herein in their entirety.
Section 2. The rates, tariffs and charges for LSGC for gas service sold within the
Town be and are revised to decrease $1,900.00 annually, which is a component of the Mid -
Cities Distribution System annual revenue increase of $675,635.00. Such schedules of rates,
as are approved in accordance herewith, are those under which LSGC shall be authorized
to render gas service and to collect charges from its customers for the sale of gas service and
energy within the corporate limits of the Town until such time as said Rate Schedules may
be changed, modified, amended or withdrawn, with the approval of the Town Council. By
this Ordinance, the Rate Schedule for Public Free Schools - N is hereby eliminated and the
customers receiving the said rate shall be placed on the commercial rate set forth in the
schedules and tariffs filed with the Town.
Section 3. The rates approved hereby fix the overall revenues of LSGC at a level
which will permit LSGC a reasonable opportunity to earn a reasonable return on both its
original and adjusted value invested capital used and useful in rendering service to the public
over and above LSGC's reasonable and necessary operating expenses. The rates approved
hereby are just and reasonable.
DOC #: 190626 -1-
Section 4. The rates approved hereby shall be effective with the gas bills rendered
on and after October 20, 1994, and enforced as of the date hereof, and shall be charged and
observed thereafter until revised according to law.
Section 5. LSGC shall file with the Town within ten (10) days hereof a revised
Schedule of Rates and Tariffs setting forth those rates, tariffs, and charges based upon such
increase in total operating revenues as prescribed herein. The rate design implemented by
such schedules and tariffs shall be in accordance with Schedule 3, attached hereto and
incorporated herein. Such Schedule of Rates and Tariffs may be modified or amended by
the Town Council within ten (10) days from the date of filing with the Town; otherwise the
same shall be considered approved as filed.
Section 6. LSGC shall reimburse the Town its costs for consultants and shall also
reimburse the Town its reasonable costs for participation in any appeal of this rate case.
Section 7. Any LSGC request for modification of existing tariffs, rates or schedules
not specifically addressed herein, is denied. However, all adjustment clauses, except the gas
cost adjustment clause and the adjustment clause for changes in municipal franchise fees,
are specifically denied.
Section 8. The action of the Town Council enacting this Ordinance constitutes, on
the date of its final passage, a final determination of rates for LSGC within the Town in
accordance with the Gas Utility Regulatory Act.
Section 9. Nothing contained in this Ordinance shall be construed now or hereafter
as limiting or modifying, in any manner, the right and power of the Town under the law to
regulate the rates and charges of LSGC.
Section 10. All ordinances, resolutions, or parts thereof, in conflict herewith, are
repealed to the extent of such conflict.
Section 11. If any section, article, paragraph, sentence, clause, phrase or word in this
Ordinance or application thereof to any person or circumstance is held invalid or
unconstitutional by a Court of competent jurisdiction, such holding shall not affect the
validity of the remaining portions of this Ordinance, and the Town Council hereby declares
it would have passed such remaining portions of this Ordinance despite such invalidity, which
remaining portions shall remain in full force and effect.
Section 12. This Ordinance shall take effect from and after its date of passage as
provided by law.
PASSED AND APPROVED by the Town Council of the Town of Trophy Club,
Texas this the 18th day of October 1994.
May , Town of Trophy Clu , Texas
DOC #: 198626 -2-
ATTEST:
LI Z-,
Town Secretary, Town of Trophy Club, Texas
APPROVED AS TO FORM:
Town A , rney, awn of Trophy Club, Texas
DOC #1 198625 -3-
ITEM A.
ITEM B
TOWN OF TROPHY CLUB, TEXAS
LONE STAR GAS COMPANY
TARIFFS & SCHEDULES
RATES
Subject to applicable adjustments, 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.
Residential:
Customer Charge $ 5.0000
All Consumption @ 5.3036 Per Mcf
If the service period is less than 28 days in a month the customer charge is
$.1786 times the number of days service, If the consumption contains a
portion of an Mcf, a prorata portion of the per Mcf charge will be made.
Commercial:
Customer Charge $ 12.0000
First 20 Mcf @ 5.4695 Per Mcf
Next 30 Mcf @ 5.1695 Per Mcf
Over 50 Mcf @ 5.0695 Per Mcf
If the service period is less than 28 days in a month the customer charge is
$.4286 times the number of days service. If the consumption contains a
portion of an Mcf, a prorata portion of the per Mcf charge will be made.
Bills are due and payable when rendered and must be paid within ten days
from monthly billing date.
Residential Off -Peak Sales Discount:
An off-peak sales discount of $.25 per Mcf will apply to residential
customers' volume purchased in excess of 8 Mcf for each of the billing
months May through October.
GAS COST ADJUSTMENT
Each monthly bill at the above rates shall be adjusted for gas cost as follows:
1
(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) 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"), less
(b) The base city gate rate of $4.0200 per Mcf, multiplied by
(c) A volume factor of 1.0193 determined in establishing the
above rates for the distribution system as the ratio of adjusted
purchased volumes divided by adjusted sales volumes.
(2) Correction of the estimated adjustment determined by Item B (1)
above for the second preceding billing month shall be included as
part of the adjustment . 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 1.06138 to include street and alley
rental and state occupation tax due to the change in 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 = [(1.0193) (Re - $4.0200) + C] X 1.06138
2
ITEM C. FRANCHISE FEE ADJUSTMENT
Each monthly bill, as adjusted above, shall be adjusted by an amount
equivalent to the proportionate part of any new franchise or street and alley
rental fee, or any increase or decrease of any franchise or street and alley
rental fee levied, assessed or imposed subsequent to October 20, 1994
upon or allocable to the Company's distribution operations, by any new or
amended ordinance.
ITEM D. SCHEDULE OF SERVICE CHARGES
{1) Inauguration of Service
In addition to the charges and rates set out above, the Company shall
charge and collect the sum of:
Schedule Ch_arg
8 A.M. to 5 P.M. Monday through Friday $ 27.50
5 P.M. to 8 A.M. Monday through Friday 41.25
Saturdays, Sundays and Holidays 41.25
For each reconnection of gas service where service has been
discontinued at the same premises for any reason, and for each new
inauguration of service when the billable party has changed, 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 $13.75 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
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,
commercial, and industrial customers shall be based on actual cost per
foot.
Ms. Cindy Kelley
City Secretary
City of Trophy Club
100 Municipal Drive
Trophy Club, Texas 76262
Re: Lone Star Gas Rate Ordinance
Dear Ms. Kelley:
Attached for official filing with the City is a Schedule of Rates and Tariffs that is in accordance
with Section IV of the recently adopted ordinance revising rates for Lone Star Gas Company.
Sincerely,
�v
Mary Jean Moloney
Attaclunent
Receipt of the above referenced Schedule of Rates and Tariffs is hereby acknowledged.
v City Secretary
Dated: 1(2,/ I g 1! I