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
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