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1996-131F \WPDOCS\ORD\LONSTAR ORD ORDINANCE NO 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 extensaons beyond the franchase free lamlt (100'), and to provide for a Weather Normalazation Ad3ustment (WNA) WHEREAS, both of these proposed items are considered revenue neutral wath regard to gas sales, and as such, do not represent an ancrease an current resadentaal and commercial gas utllaty rates as previously set by the City in 1982 WHEREAS, these proposed changes will become effectave on July 1, 1996, af 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 maanl~ne extension rate established by Ordinance No 82-1 shall be amended to read in accordance with Item A in the attachment hereto which as incorporated herein ~ The residential and commercial rates established by Ordanance No 82-1 shall be adjusted upward or downward for var~ataons an the heatang degree days according to Item B an the attachment hereto which is incorporated herein SECTION III The rates set forth in th~s ordinance may be changed and amended by either the Caty or Company in the manner provided by law Servace hereunder is subject to the orders of regulatory bodaes having 3urisdzct~on, and to the company's rules and regulations currently on fale in the company's offace SECTION IV This ordanance is effective on and after July 1, 1996 ~ 19__~ASSED~ AND APPROVED this the ~ day of //~_~ , ATTEST JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY PAGE 2 ATTACHMENT TO ORDINANCE NO CITY OF DENTON, TEXAS LONE STAR GAS COMPANY TARIFFS & SCHEDULES ITEM A MAIN LINE EXTENSION RATE The charge for extending mares beyond the free hm~t estabhshed by Franchise for residential, commercial, and ~ndustnal customers shall be based on the actual cost per foot of the extension ITEM B Weather Normahzat~on Adjustment Effective w~th bdls rendered dunng the October 1996 through May 1997 bdhng months, and annually thereafter for the October through May bdhng months, the above residential and commercial consumption rates for gas service, as adjusted, shall be subject to a weather normahzat~on adjustment each b~lhng cycle to reflect the ~mpact of variations ~n the actual heating degree days dunng the period ~ncluded ~n the bdhng cycle from the normal level of heating degree days dunng the penod ~ncluded ~n the bdhng cycle The weather normahzat~on adjustment wdl be ~mplemented on a per Mcf basis and wdl be apphcable to the heating load of each customer dunng the period ~ncluded ~n the b~lhng cycle It wdl be determined separately for residential and commercial customers based on heating degree data recorded by the D/FW A~rport weather stabon The adjustment to be made for each bllhng cycle w~ll be calculated according to the following formula NDD-ADD WNA ~ × M x AHL ADD Where WNA = Weather normahzat~on adjustment NDD = Normal heating degree days dunng the period covered by the billing cycle ADD = Actual heating degree days dunng the period covered by the billing cycle M= Weighted average margin per Mcf included ~n the commodity portion of the rates effective during the October through May billing months AHL = Actual heating load per customer The heabng load to which the weather normahzabon adjustment Is to be apphed for residential and commercial customers ~s determined by subtracting the base load for the customer from the total volume being b~lled to the customer The base load of a customer ~s the average level of nonheat~ng consumption The weather normahzat~on adjustment ~s subject to a 50% I~mltat~on factor based on temperatures being fifty percent warmer or colder than normal The weather normahzatlon adjustment w~ll be calculated to the nearest $ 0001 per Mcr 2