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HomeMy WebLinkAbout1999-059NOTE Amended by Ordinance No 2001-251 ORDINANCE NO AN ORDINANCE FIXING AND DETERMINING THE GENERAL SERVICE RATE TO BE CHARGED FOR SALES OF NATURAL GAS TO RESIDENTIAL AND COMMERCIAL CUSTOMERS IN THE CITY OF DENTON, DENTON COUNTY, TEXAS, PROVIDING FOR THE MANNER IN WHICH SUCH RATE MAY BE CHARGED, APPROVING THE COM- MERCIAL RATE FOR PUBLIC SCHOOL GAS SERVICES, PROVIDING FOR A WEATHER NORMALIZATION CLAUSE, PROVIDING FOR A SCHEDULE OF SERVICE CHARGES, PROVIDING FOR A MAIN LINE EXTENSION RATE, PROVIDING AN OPEN MEETINGS CLAUSE, AND PROVIDING AN EFFECTIVE DATE CLAUSE WHEREAS, the City of Denton is a regulatory authority under the Gas Utility Regulatory Act ("GURA") Utilities Code § 103 001, and has original jurisdiction over the rates of Lone Star Gas, a division of ENSERCH Corporation, a wholly owned subsidiary of Texas Utilities Com- pany ("LSGC" or "Company"), and WHEREAS, LSGC on October 23, 1998 filed with the City of Denton, Texas a State- ment of Intent requesting rates and charges for gas sales in the City of Denton customers be in- creased $440,428 per annum, requesting increases in service charges to City of Denton custom- ers in the amount of $35,667 per annum, requesting continuation of the Weather Normalization Clause, requesting implementation of a Cost of Service Adjustment Clause ("COSA") and Plant Investment Cost Adjustment Clause ("PICA"), and WHEREAS, the schedule of rates proposed by LSGC was suspended for a period of 90 days from November 27, 1998 the effective date stated in the Company's Statement of Intent for fur- ther review and investigation by Ordinance No 98-397, and WHEREAS, on December 16, 1998 the City of Denton retained the firm of Diversified Utility Consultants, Inc ("DUCI" or "Consultant") to review the Company's proposed rates and charges, and WHEREAS, the City Council having considered LSGC's request, the Consultant's Re- port and Findings, the Company's response report to the Consultant's Findings, and after reason- able notice and having considered this matter at three separate meetings of the City Council, is of the opinion and finds that LSGC's rates should be increased at the amount of 3%, or a $225,797 increase in gas sales rates, and approval of the $35,667 annual increase in service charges, con- tinued implementation of the Weather Normalization Clause and denial of the COSA and PICA adjustment clauses which will result in fair, just, and reasonable rates and charges and should be approved and rates set in accordance therewith, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SSECTION I. That effective with the gas bills rendered on or after the date of the passage of this ordinance, the maximum general service rate for sales of natural gas rendered to residen- tial and commercial customers within the City limits of Denton, Texas by Lone Star Gas, a divi- Sion of ENSERCH Corporation, a wholly owned subsidiary of Texas Utilities Company, its suc- cessors and assigns, are hereby increased $225,797 in annual revenue and $35,667 per annum for service charges to customers in the City of Denton, and the rates shall include the Gas Cost Ad- justment Clause requested by the Company as more fully set forth in Section II of this ordinance, the Tax Adjustment Clause requested by the Company as more fully set forth in Section III of this ordinance, the Main Line Extension Rate requested by the Company as more fully set forth in Section IV of this ordinance, and the continuation of the Weather Normalization Clause The Company shall file with the City within ten days of the effective date of this ordinance tariffs consistent with this ordinance and with rates designed with a $5 50 monthly customer charge for residential customers and a $10 00 monthly customer charge for commercial customers and total revenues in accordance with this ordinance which tariffs shall be attached to and made a part of this ordinance for all purposes as Exhibit "A" The rates shall also be designed to spread the im- pact of the increase equally among all residential and commercial customers The rates estab- lished thereby shall be those under which the Company shall be authorized to render gas services and collect charges from its customers for the sale of gas within the corporate limits of the City effective with gas services utilized by the customers on and after the final date of passage of this ordinance All other rate relief requested by the Company is hereby denied SECTION II That the residential and commercial rates set forth above shall be adjusted upward or downward from a base of 2 7535 per MCF by the gas cost adjustment factor ex- pressed as an amount per thousand cubic feet (MCF) of natural gas for changes in the intercom- pany city gate rate charge as authorized by the Railroad Commission of Texas or other regula- tory body having jurisdiction for gas delivered to the Denton distribution system according to the gas cost adjustment factor within the tanff attached as Exhibit "A" SECTION III, That the residential and commercial rates set forth above shall be adjusted upward or downward for changes in taxes and other governmental impositions, rental fees, or charges according to the tax adjustment clause in the tariff attached as Exhibit "A" SECTION IV That 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 rea- sonable rules and regulations The charges set forth in the schedule of service charges and in the main line extension rate within the tariff attached as Exhibit "A" are hereby approved Services for which no charge is set out may be performed and charged for by Company at a level estab- lished by the normal forces of competition SECTION V. That in addition to the aforesaid rates, the Company shall pay to the City for payment to the Consultant the full amount of the rate case expense estimated at $20,000 in accordance with §103 22 of GURA The City Council hereby finds and determines that the rate case expense charged by the Consultant was fair and reasonable The Company is authorized to recover the current rate case expense through a surcharge designed for a six-month nominal re- covery period The Company will provide monthly status reports to the City to account for the collection of the rate case expense Page 2 SECTION VI That the rates approved hereby fix the overall revenues of the Company at a level which will permit LSGC a reasonable opportunity to earn a reasonable return on its in- vested capital used and useful in rendering service to the public over and above the Company's reasonable and necessary operating expenses and are just and reasonable All other rates re- quested, including the COSA and PICA adjustment clauses, are hereby denied SECTION VII That the rates approved hereby shall be effective and in force for all consumption from and after the effective date of the tariff required to be filed hereby and shall be charged and observed thereafter until revised according to law SECTION VIE That the action of the City Council of the City of Denton enacting this ordinance constitutes, on the date of its final passage, a final determination of rates for LSGC within the City of Denton SECTION IX. That nothing contained in this ordinance shall be construed now or here- after as limiting or modifying, in any manner, the right and power of the City under the law to regulate the rates and charges of LSGC SECTION X That should any part, sentence, or phrase of this ordinance be determined to be unlawful, void, or unenforceable, the validity of the remaining portions of this ordinance shall not be adversely affected No portion of this ordinance shall fail or become inoperative by reason of the invalidity of any other part All provisions of this ordinance are severable SECTION XI That all ordinances, resolutions, or part thereof, in conflict herewith are repealed to the extent of such conflict SECTION XII That the City Council has found and determine that the meeting at which this ordinance is considered is open to the public and that notice thereof was given in ac- cordance with the provisions of the Texas open meetings law, Tex Gov't Code ch 551, as amended, and that a quorum of the City Council was present SECTION XIII That this ordmance shall become effective immediately upon its pas- sage and approval PASSED AND APPROVED this the R25 kqo'day of 1999 JA I ER, MAYOR Page 3 ATTEST JENNIFER WALTERS, CITY SECRETARY IN APMOVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY C-� BY \\CH LGL\VOL1\ahazed\depN.OL\Our Oocumenu\Ordinances\99\lon<-I" mh dac Page 4 EXHIBIT A ATTACHMENT TO ORDINANCE FOR CITY OF DENTON, TEXAS LONE STAR GAS COMPANY TARIFFS & SCHEDULES ITEM A 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 $ 55000 All Consumption @ 3 7022 Per Mcf If the service period is less than 28 days in a month the customer charge is $ 1964 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 $ 100000 First 20 Mof @ 4 0820 Per Mcf Next 30 Mcf @ 3 7820 Per Maf Over 50 Mcf @ 3 6320 Per Mcf If the service period is less than 28 days in a month the customer charge is $ 3571 times the number of days service If the consumption contains a portion of an Mcf, a prorate portion of the per Mcf charge will be made Bills are due and payable when rendered and must be paid within fifteen 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 1 ITEM B GAS COST ADJUSTMENT Each monthly bill at the above rates 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) 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 $2 7535 per Mcf, multiplied by (c) A volume factor of 10524 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 03986 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 0524) (Re - $2 7535) + C] X 1 03986 2 ITEM C WEATHER NORMALIZATION ADJUSTMENT Effective voth bills rendered during the October 1998 through May 1999 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 YVNA z 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 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 3 ITEM D ITEM E TAX ADJUSTMENT Each monthly bill, as adjusted above, shall be adjusted by an amount equivalent to the proportionate part of any new tax, or any tax increase or decrease, or any increase or decrease of 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 December 31, 1997, upon or allocated to the Company's distribution operations, by any new or amended law, ordinance or contract In addition, each monthly bill, as adjusted above, shall be further adjusted to include any municipal franchise fee or street and alley tax now or hereafter in effect in this city to the extent that such municipal franchise fee or street and alley tax is at a rate higher than 2% of the Company's gross receipts SCHEDULE OF SERVICE CHARGES (1) Connection Charge In addition to the charges and rates set out above, the Company shall charge and collect the sum of Schedule Char e Business Hours $ 3500 After Hours 5250 For each reconnection of gas service where service has been discontinued at the same premises for any reason, for the initial inauguration of service, and for each inauguration of service when the billable party has changed, with the following exceptions (a) For a budder who uses gas temporarily during construction or for display purposes (b) Whenever gas service has been temporarily interrupted because of system outage or service work done by Company, or (c) For any reason deemed necessary for company operations (2) Read For Change Charge A read for change charge of $12 00 is made when it is necessary for a company employee to read the meter at a currently served location because of a change in the billable party 4 (3) Returned Check Charges A returned check handling charge of $16 25 is made for each check returned to the Company for any reason (4) Delinquent Notification Charge A charge of $4 75 shall be made for each trip by a Company employee to a customer's residence or place of business when there is an amount owed to the Company that is past due This charge shall not be made when the trip is required for safety investigations or when gas service has been temporarily interrupted because of system outage or service work done by Company ITEM F 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 5 S WU UuumwuWNipwcu`AIITXU OU MCBeNmml doe ORDINANCE NOOL� AN ORDINANCE ESTABLISHING MAXIMUM PERMITTED RATES AND CHARGES THAT TXU GAS DISTRIBUTION MAY ASSESS RESIDENTIAL AND COMMERCIAL CUSTOMERS IN THE CITY OF DENTON, APPROVING RATES FOR INDUSTRIAL CUSTOMERS IN THE CITY OF DENTON ESTABLISHED BY CONTRACT BETWEEN TXU GAS DISTRIBUTION AND SUCH INDUSTRIAL CUSTOMERS, ADOPTING DECLARATIONS AND FINDINGS RELATED TO RATES AND CHARGES ASSESSED TO RESIDENTIAL, COMMERCIAL AND INDUSTRIAL CUSTOMERS IN THE CITY OF DENTON, PROVIDING FOR RECOVERY OF RATE CASE EXPENSES, REPEALING ORDINANCE NO 99-059, PROVIDING A SEVERABILITY CLAUSE, AND PROVIDING AN EFFECTIVE DATE WHEREAS, on or about February 26, 2001, TXU Gas Distribution ("TXU Gas"), a division of TXU Gas Company (formerly Lone Star Gas Company), filed with the City Secretary a "Statement of Intent to Change Rates" under which higher rates charged by TXU Gas would go into effect in the City of Denton (Denton) effective March 23, 2001, and WHEREAS, pursuant to Section 104 107 of the Texas Utilities Code, on March 6, 2001, the City Council passed Resolution No 2001-010 suspending implementation of TXU Gas's proposed rate schedule from March 23, 2001 until June 21, 2001, and WHEREAS, the City Council authorized Denton to Join the Northwest Metro Mid -Cities Distribution System Coalition of Cities (Cities) and authorized the hiring of rate consultants and an attorney and further authorized the retention of Diversified Utility Consultants, Inc to assist Denton in its review of the TXU Gas's proposed rate schedule, and WHEREAS, on April 3, 2001, TXU Gas filed an updated rate filing ("Rate Filing") with the Cities and Denton, incorporated herein by reference for all purposes, and WHEREAS, TXU Gas agreed to extend the date for implementation of TXU Gas's updated rate schedule from June 21, 2001 to July 21, 2001, and WHEREAS, pursuant to Chapters 103 and 104 of the Texas Utilities Code, the Cities and Denton are required to (i) analyze TXU Gas's Rate Filing, as updated, (n) conduct a public hearing in order to determine the propriety of the proposed rate increase (the "Public Hearing"), and (in) make a reasonable determination of TXU Gas's rate base, expenses, investment and rate of return in Denton, and WHEREAS, the Public Hearing was conducted on July 17, 2001 before the enactment of this ordinance at which all interested parties were given a full opportunity to comment on the Rate Filing, NOW, THEREFORE, s war On wie Smmmmr ace THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION 1 FINDINGS That the City Council, pursuant to its exclusive original jurisdictional authority over the rates, operations and service of TXU Gas within Denton and in the exercise of its sound legislative discretion, after reasonable notice and hearing, makes the following findings of fact 1 1 TXU Gas filed with Denton's City Council a Statement of Intent to change residential, commercial and industrial rates charged to consumers within Denton and also filed the Tariff for Gas Service in the Northwest Metro Mid -Cities Distribution System ("Tariff for Gas Service") and the supporting cost of Service Schedules ("Schedules") TXU Gas has agreed to an overall Northwest Metro Mid -Cities Distribution System Rate Settlement The agreed residential customer class annual increase is $2,511,718 and the commercial customer class annual increase of $1,034,951 throughout the System That TXU Gas has agreed that the maximum general service revenues for sales of natural gas rendered to residential customers (without the cost of gas included) will be $2,327,483 and for commercial customers will be $902,589 (without the cost of gas included) within the city limits of Denton, Texas, in annual revenue for service charges to customers The Gas Cost Adjustment clause, Weather Normalization Adjustment Clause, Tax Adjustment Clause, Miscellaneous Service Charges Clause required by TXU Gas as more fully set forth in Section 2 of this Ordinance are found to be just and reasonable 12 Denton does not have evidence of any unfair advantage by either TXU Gas or its industrial customers in Denton with regard to contract negotiations for industrial gas rates, and therefore, in accordance with Section 104 003(b) of the Texas Utilities Code, contractual industrial gas rates are considered to be just and reasonable 13 Based on the above facts, the City Council finds that rates for residential customers in Denton, as requested by TXU Gas in its Rate Filing, are unreasonable and shall be changed as hereafter ordered 14 Based on the above facts, the City Council finds that rates for commercial customers in Denton, as requested by TXU Gas in its Rate Filing, are unreasonable and shall be changed as hereafter ordered 15 Based on the above facts and in accordance with the mandates of Section 104 003(b) of the Texas Utilities Code, the City Council approves rates for industrial customers in Denton established by contract between TXU Gas and such industrial customers Therefore, Denton declines to establish rates for industrial customers in the City as requested by TXU Gas in its Rate Filing 1 6 Based on the above facts, the City Council finds that the changed rates for residential and commercial customers determined as a result of TXU Gas and the Cities' Settlement are just and reasonable Page 2 of 9 S \Our Ouomml�`AEiom[mW I\'f)N Om R�\e &WemmLEm SECTION 2 RATES AND CHARGES ORDERED That based on the finding of fact set forth in Section 1 of this Ordinance and in accordance with the schedules set forth in this Section 2, TXU Gas is hereby authorized to assess the following maximum permitted rates and charges for customers in Denton, which rates and charges the City Council hereby determines to be fair, just and reasonable on all consumption of gas on and after July 21, 2001 21 Residential Gas Rates The following rates are the maximum permitted rates and charges applicable to residential customers per meter per month or for any part of a month for which gas service is available to the same location Customer Charge $7 00 All Consumption @ $0 8335 If the service period is less than twenty-eight (28) days in a given month, the customer charge shall be $0 25 times the number of days' service 22 Commercial Gas Rates The following rates are the maximum permitted rates and charges applicable to commercial customers per meter per month or for any part of a month for which gas service is available at the same location Customer Charge $12 00 First 20 Mcf @ $ 1 1371 per Mcf Next 30 Mcf @ $ 8371 per Mcf Over 50 Mcf @ $ 6871 per Mcf If the service period is less than twenty-eight (28) days in a given month, the customer charge shall be $0 4286 times the number of days' service 23 Gas Cost Adjustment Each monthly bill at the rates and charges set forth in Sections 2 1 and 2 2 shall be adjusted for gas cost as follows 2 3 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 ("Re" in the summary below), less Page 3 of 9 s W , au Me SMI. wE (b) The base City gate rate of $0 00 per Mcf, multiplied by (c) A volume factor of 1 0117 determined in establishing the above rates for the distribution system 2 3 2 Correction of the estimated adjustment determined by Section 2 3 1 shall be included as part of the adjustment for the second following billing month The correcting factor ("C" in the summary below) shall be expressed to the nearest $0 0001 per Mcf based upon (a) The corrected adjustment amount based on the actual City gate rate, less (b) The estimated adjustment amount billed under Section 2 3 1, divided by (c) Distribution system residential and commercial sales Mcf recorded on TXiJ Gas's books during the prior year for the month that the correction is included as part of the adjustment In summary, the gas cost adjustment ("GCA" in the summary below) shall be determined to the nearest $0 0001 per Mcf by Section 2 3 1 plus Section 2 3 2 as follows GCA = ((1 0117) (Re - $0 00) + C] 24 Weather Normalization Adjustment Effective with bills rendered during the October 2001 through May 2002 billing months, and annually thereafter for the October through May billing months, the 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 the heating degree data recorded by the DFW Airport weather station The adjustment to be made for each billing cycle will be calculated according to the following formula NDD — ADD WNA = ADD x M x AHL 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 Page 4 of 9 SW 0. Rua sw..,tl M = Weighted average margin per Mcf included in the commodity portion 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 non -heating 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 $0 0001 per Mcf 25 Tax Adjustment Each monthly bill, as adjusted above, shall be adjusted for municipal franchise fees (street and alley rental taxes) and the state gross receipts taxes imposed by Section 182 021 — 182 025 of the Texas Tax Code Municipal franchise fees are determined by each city's franchise ordinance Each monthly bill, as adjusted above shall also be adjusted by an amount equivalent to the proportionate part of any new tax, or an tax increase or decrease, or any increase or decrease of 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 September 30, 2001, upon or allocated to the Company's distribution operations, by any new or amended law, ordinance or contract Municipal franchise fees (street and alley rental taxes) and the state gross receipts taxes imposed by Sections 182 021 — 182 025 of the Texas Tax Code shall continue to be collected pursuant to individual industrial contracts 26 Rate Case Expenses TXU Gas's initial "Statement of Intent to Change Rates", filed with Denton on February 26, 2001, and the subsequent Rate Filing, constitute a ratemaking proceeding Pursuant to Section 103 002(a) of the Texas Utilities Code, the Northwest Metro Mid -Cities Distribution System was authorized to hire rate case consultants and an experienced utility attorney and Denton was authorized to engage Diversified Utility Consultants, Inc to assist Denton in its analysis of this ratemaking proceeding Pursuant to Section 103 022(b) of the Texas Utilities Code, the Cities rate case expenses are found to be reasonable and TXU Gas shall reimburse the Cities the reasonable cost of services of the rate case consultants and utility attorney (Geoffrey Gay) and Denton's rate case expenses are found to be reasonable and TXU Gas shall reimburse Denton the additional sum of $12,500 00, which is the actual and reasonable cost of services rendered by Diversified Utility Consultants, Inc on behalf of Denton during the course of this ratemaking proceeding ("Rate Case Expenses") TXU Gas shall make such reimbursement in full to the Page 5 of 9 8 Wor DocomeoYWJiomcn\01\T%U Oa RMa Betllaveo4Joc Cities and Denton within thirty (30) calendar days following receipt of an itemized statement from the Cities and Denton TXU Gas is authorized to recover rate case expenses reimbursed to Denton and the Cities and also may recover TXU's rate case expenses (at an amount not to exceed $85,000 for all the Cities including Denton) through a per MCF surcharge based upon total system sales as set forth in Rider 4106 as a part of their revised Tariff for Gas Service to be attached and made a part of this ordinance It is hereby ordered that if TXU Gas elects to recover, in whole or in part, the costs of this reimbursement (including Diversified Utility Consultants, Inc 's rate case expenses, Denton's portion of the Cities and TXU's rate case expenses as set forth above) through a surcharge to its customers in Denton, it shall do so through a surcharge designed for a six (6) month nonunal recovery period The surcharge per Mcf shall be calculated by dividing the Rate Case Expenses 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 Denton to account for the collections TXU Gas shall refund to its customers any over collection of rate case expenses that may occur 27 Miscellaneous Service Charges 2 7 1 Connection Charge (Residential & Commercial) The following connection charges apply Schedule Charge Business Hours $35 00 After Hours $52 50 For each reconnection of gas service where service has been discontinued at the same premises for any reason, for the initial inauguration of service, and for each 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) Whenever gas service has been temporarily interrupted because of system outage or service work done by Company, or (c) For any reason deemed necessary for company operations 2 7 2 Read For Change Charge (Residential & Commercial) Page 6 of 9 s w�, m�winrow�am.a.nonrzu a.. ww smimw.aa A read for change charge of $12 00 is made when it is necessary for a company employee to read the meter at a currently served location because of a change in the billable party 2 7 3 Returned Check Charges (Residential & Commercial) A returned check handling charge of $16 25 is made for each check returned to the Company for any reason 2 7 4 Delinquent Notification Charge (Residential, Commercial, & Industrial) A charge of $4 75 shall be made for each trip by a Company employee to a customer's residence or place of business when there is an amount owed to the Company that is past due This charge shall not be made when the trip is required for safety investigations or when gas service has been temporarily interrupted because of system outage or service work done by Company 2 7 5 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 costs per foot of the extension 2 7 6 Charge for Installing and Maintaining and Excess Flow Valve (Residential) A customer may request the installation of an excess flow valve on a new service line or on a service line being replaced provided that the service line will serve a single residence and operate continuously throughout the year at a pressure of not less than 10 psig The customer will pay the actual costs incurred to install the excess flow valve That cost will include the costs of the excess flow valve, the labor costs required to install the excess flow valve and other associated costs The estimated total costs to install an excess flow valve is $50 00 This cost is based on installing the excess flow valve at the same time a service line is installed or replaced The excess flow valve will be installed on the service line upstream of the customer's meter and as near as practical to the main A customer requiring maintenance, repair, or replacement of an excess flow valve will be required to pay the actual cost of locating and repairing or replacing the excess flow valve The cost to perform this service will normally range from $200 00 to $2,000 00, depending on the amount of work required This cost will be determmed on an individual project basis This tariff is being filed in accordance with the U S Department of Transportation rule requiring the installation of an excess flow valve, if requested by a customer, on new or replaced service lines that operate continuously throughout the year at a pressure of not less than 10 psrg and that service a single residence The rule further states that the customer will bear all costs of installing and maintaining the excess flow valve Page 7 of 9 S \Our OxommuWNWmrMni\T%11 Or Phu Bealemm4tloo 2 7 7 Recovery of Connection Costs Associated with Certain Stand -By Gas Generators (Commercial) Commercial customers installing stand-by gas generators to provide service in the event of an interruption in electric service in facilities where gas service is not otherwise provided will reimburse TXU Gas Distribution for the actual cost of acquiring and installing the regulator, service line, and meter required to provide gas service for the stand-by generators Gas service provided for the stand-by generators will be billed at the applicable commercial rate 28 Filing of Rates TXU Gas shall file with Denton within ten days of the effective date of this ordinance tariffs consistent with the rates authorized by this ordinance, which tariffs shall be attached to and made a part of this ordinance for all purposes The rates established thereby shall be those under which TXU Gas shall be authorized to render gas services and collect charges from its customers on and after July 21, 2001 All other rate relief requested by the Company is hereby denied SECTION 3 RESERVATION OF RIGHTS In order to ensure that rates and charges assessed by TXU Gas in Denton are Just and reasonable to both TXU Gas and its customers, Denton reserves the right and privilege at any time to increase, decrease, alter change or amend this Ordinance or the rates established herein or to enact any ordinance or adopt any rates and charges which would effectuate that purpose In this connection, Denton further reserves the right and privilege to exercise any authority and power granted to it under any applicable law, ordinance or administrative rule or regulation SECTION 4 REHEARING BY CITY COUNCIL If TXU Gas disputes all or any portion of this Ordinance, prior to filing an appeal with the Railroad Commission of Texas, TXU Gas shall file with the City Secretary a request for rehearing on the merits by the City Council and shall comply with the procedures established for such a rehearing as set forth tin this Section 4 Upon receipt of a request for rehearing, the City Council will promptly provide a forum during a public hearing on an open meeting in order for TXU Gas to set forth the aspects of this Ordinance which TXU disputes The City Council shall have sixty (60) calendar days following the date of such rehearing to render a final decision Action of the City Council shall not be considered final for purposes of appeal to the Railroad Commission of Texas until a final decision on nay motion for rehearing has been rendered The provisions of this Ordinance shall remain in full force and effect from and after its adoption unless modified by a subsequent ordinance adopted by the City Council as a result of a final decision following a rehearing SECTION 5 SEVERABILITY If any portion, section or part of a section of this Ordinance is subsequently declared invalid, inoperative or void for any reason by a court of competent Jurisdiction, the remaining portions, sections or parts of sections of this ordinance shall be and remain in full force and effect and shall not in any way be impaired or affected by such decision, opinion or Judgment Page 8 of 9 SW 1 pxum�INTXU 0. Pau S.d..E SECTION 6 REPEALER That all conflicting sentences, clauses, paragraphs and sections of Ordinance No 99-059 passed and approved by the City Council on February 23, 1999, and any other conflicting ordinances and resolutions are hereby repealed to the extent of that conflict SECTION 7 Unless otherwise noted herein, other than TXU Gas (a named party), no person or entity has been admitted as a party to this rate proceeding SECTION 8 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 the meeting was given SECTION 9 EFFECTIVE DATE This ordinance shall take effect and be in full force and effect from and after the date of its adoption The City Secretary is hereby directed to deliver a certified copy of this Ordinance to TXU Gas by sending the ordinance by U S Mail to the Company's authorized representative, Autrey Warren, Regulatory Financial Manager, TXU Business Services, 1601 Bryan Street, Dallas, Texas 75201-3411 PASSED AND APPROVED this the NO day of , 2001 RONI BEASLE-f MAYQFR PRO TEM ATTEST JENNIFER WALTERS, CITY SECRETARY BY r APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY m Page 9 of 9