HomeMy WebLinkAbout1996-131F \WPDOCS\ORD\LONSTAR ORD
ORDINANCE NO :13
AN ORDINANCE CONFIRMING THE ACTION TAKEN BY LONE STAR GAS COMPANY
IN ACCORDANCE WITH THE GAS UTILITY REGULATORY ACT TO MODIFY THE
MAIN LINE EXTENSION RATE AND IMPLEMENT A WEATHER NORMALIZATION
ADJUSTMENT CLAUSE IN THE CITY OF DENTON, DENTON COUNTY, TEXAS, AND
DECLARING AN EFFECTIVE DATE
WHEREAS, on May 24, 1996, Lone Star Gas filed a Statement of
Intent with the City Secretary to amend the current gas utility
rate ordinance in Denton to provide for the actual cost of mainline
extensions beyond the franchise free limit (1001), and to provide
for a Weather Normalization Adjustment (WNA)
WHEREAS, both of these proposed items are considered revenue
neutral with regard to gas sales, and as such, do not represent an
increase in current residential and commercial gas utility rates as
previously set by the City in 1982
WHEREAS, these proposed changes will become effective on
July 1, 1996, if the City takes no action pursuant to the Gas
Utility Regulatory Act, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I The mainline extension rate established by
Ordinance No 82-1 shall be amended to read in accordance with Item
A in the attachment hereto which is incorporated herein
SSECTION II The residential and commercial rates established
by Ordinance No 82-1 shall be adjusted upward or downward for
variations in the heating degree days according to Item B in the
attachment hereto which is incorporated herein
SECTION III 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 IV This ordinance is effective on and after July 1,
1996
ASSED AND APPROVED this the day of
19q
JA MILLER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY 7!�
APP VED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
BYl/j;/.(G�t t X Ct�
PAGE 2
ATTACHMENT TO ORDINANCE NO710 /Z/
CITY OF DENTON, TEXAS
LONE STAR GAS COMPANY
TARIFFS & SCHEDULES
ITEM A 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 B 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
AUU
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
AHL =
Actual heating load per customer
1
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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