2005-028S:\Our Documents\Ordinances\05\CoServ Settlement Ord,doc
ORDINANCE NO. ~ O0~--~F~ ~
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, FINDING THAT THE CURRENT
RATES OF COSERV GAS LTD. ARE UNREASONABLE; APPROVING COSERV GAS
LTD.'S REVISED AND UNCONTESTED TARIFFS; APPROVING A RATE PHASE-IN;
AUTHORIZING CONTINUATION OF DEFERRAL OF CARRYING CHARGES ON PLANT
HELD FOR FUTURE USE; RECOGNIZING COSERV'S RIGHT TO SURCHARGE FOR
FACILITY RELOCATION REQUIRED BY THE CITY; SETTING THE EFFECTIVE DATE
OF NEW TARIFFS AS FEBRUARY 1, 2005; FINDING THE CITIES' RATE CASE
EXPENSES REASONABLE; SEVERING THE DETERMINATION OF THE
REASONABLENESS OF COSERV GAS LTD.'S RATE CASE EXPENSE FROM
APPROVAL OF THE REVISED TARIFFS; RETAINING JURISDICTION OVER THE
DETERMINATION OF THE REASONABLENESS OF COSERV GAS LTD.'S RATE CASE
EXPENSE ISSUE UNTIL MARCH 1, 2005; ADOPTING A BASE RATE CASE
MORATORIUM; F1NDING THAT ANY RELIEF REQUESTED BY COSERV GAS LTD.
NOT SPECIFICALLY GRANTED HEREIN IS DENIED; ADOPTING A MOST FAVORED
NATIONS PROVISION; FIND1NG THAT THE MEETING AT WHICH THIS ORDINANCE
IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW; AND PROVIDING FOR
NOTICE OF THIS ORDINANCE TO COSERV GAS LTD; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, on or about August 25, 2004, CoServ Gas Ltd. ("CoServ" or "Company"),
filed with the City of Denton a Statement of Intent to change gas rates in all municipalities
within the CoServ System effective October 1, 2004; and
WHEREAS, the City has exclusive original jurisdiction to evaluate the Company's
Statement of Intent as it pertains to the distribution facilities located within the City, pursuant to
Texas Utilities Code §§ 102.001(b) and 103.001; and
WHEREAS, pursuant to Section 104.107 of the Texas Utilities Code, on September 21,
2004, the City Council passed Resolution No. 2004-050, suspending the effective date of
CoServ's rate request until December 28, 2004 and CoServ extended the effective date of the
rate increase by an additional thirty days for the City to investigate the Company's filing and to
consider settlement of the request or until January 27, 2005; and
WHEREAS, failure to take action regarding CoServ's rate request by January 27, 2005,
will cause CoServ's request to become effective for all CoServ customers within the municipal
limits; and
WHEREAS, the City Council authorized Denton to cooperate with the Coalition of Cities
Served by CoServ ("Cities"), a group of other cities similarly affected by CoServ's rate request
to jointly hire counsel and an independent consultant to review CoServ's application and further
authorized the retention of Diversified Utility Consultants, Inc. to assist Denton in its review of
CoServ's proposed rate application; and
S:\Our Documents\Ordinances\05\CoServ Settlement Ord.doc
WHEREAS, after consideration of the Company's filing and the report issued by Cities'
expert, the City concludes that CoServ's current rates are unreasonable and should be changed;
and
WHEREAS, the Company and Cities have reached an agreement as to CoServ's filed
request to increase rates conditioned upon final approval by Cities; and
WHEREAS, the Company's requested increase in system-wide annual revenues of
$1,165,525 is excessive, and the Company has agreed to an increase in system-wide revenue of
$500,000, of which approximately $214,000 is associated with changes to the miscellaneous
service charges; and
WHEREAS, a condition to the settlement with CoServ is the City's recognition of the
Company's right under Texas Utilities Code Section 104.112, independent of the tariffs
approved herein, to surcharge facilities relocation charges within the city requiring relocation in
accordance with this Code section; and
WHEREAS, a condition to the settlement with CoServ and the revised tariffs approved
herein is the Company's commitment that it will not file a request with Cities for a rate increase
that becomes effective prior to September 1, 2006; and
WHEREAS, a condition to the settlement with CoServ is the phase-in of the base rate
increase approved and reflected by the attached tariffs so that the fncst ten percent of the rate
increase will be implemented upon adoption of the revised tariffs and the remaining increase will
be implemented in ten-percent increments on or after November 1, 2005 and the balance on or
after August 1, 2006; and
WHEREAS, the Company shall file with the City base rate tariffs reflecting the ten
percent phase-in increases for the first ten percent base rate increase effective February 1, 2005,
the second ten percent base rate increase effective November I, 2005, and the balance of the
increase on or after August 1, 2006.
WHEREAS, Cities' rate case expenses incurred in this proceeding are reasonable and
should be reimbursed by CoServ; and
WHEREAS, the City is unable at this time to determine the reasonableness of the rate
case expenses incurred by the Company; and
WHEREAS, the City has reviewed the settlement agreement reached between the
Company and the Coalition of Cities Served by CoServ and has determined that approval of the
revised tariffs is in the best interest of the City and its residents, results in just and reasonable
rates, and, therefore, should be approved by the City; and
WHEREAS, since the Company filing is based upon system-wide standardized rates and
tariffs, it would be inappropriate for any city or residents of any city to receive benefits not
enjoyed by the entire system; and
Page 2 of 5
S :\Our Documents\Ordinanees\05\CoServ Settlement Ord.doc
WHEREAS, pursuant to Chapters 103 and 104 of the Texas Utilities Code, the Cities and
Denton are required to (i) analyze CoServ's Rate Filing, as updated; (ii) conduct a public hearing
in order to determine the propriety of the proposed rate increase (the "Public Hearing"); and (iii)
make a reasonable determination of CoServ's rate base, expenses, investment and rate of return
in Denton; and
WHEREAS, the Public Heating was conducted on December 7, 2004 before the
enactment of this Ordinance at which all interested parties were given a full opportunity to
comment on the Rate Filing and was continued until January 4, 2005 at which time an additional
Public Heating was held; and
WHEREAS, at the January 4, 2005 Council meeting the City Council continued the
public hearing until your January 18, 2005 Council meeting to provide an opporttmity for
additional public comment and to provide time for the coalition of cities to complete the details
of a proposed settlement with CoServ; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. That it is in the best interest of the City and its residents to adopt the
revised residential, commercial and miscellaneous service charge tariffs attached to and made a
part of this ordinance that reflect the settlement agreement reached between CoServ and the
Coalition of Cities Served by CoServ. All other tariffs proposed in CoServ's Statement of Intent,
except for rate schedule 9 (Rider RCE - rate case expenses) are adopted.
SECTION 2. That the adoption of tlm revised tariffs provides for just and reasonable
rates to be charged system-wide by the Company.
SECTION 3. That the system-wide annual base revenue increase of $500,000 is to be
phased-in over an 18 month period with the first ten percent of the increase to be instituted on
February 1, 2005, the second ten percent of the base rate increase to be instituted November I,
2005 and the remaining base rate increase to be effective on August 1, 2006.
SECTION 4. That the Company shall file with the City base rate tariffs reflecting the ten
pement phase-in increases for the first ten percent base rate increase effective February 1, 2005,
the second ten percent base rate increase effective November 1, 2005, and the balance of the
increase on or after August 1, 2006.
SECTION 5. That the effective date of the new tariffs is February 1, 2005 except that the
base revenue increase shall be effective as indicated in Section 3.
SECTION 6. That no specific rate base, return, revenue or cost adjustments or rate
making methodologies are approved in reaching the revenue requirements settlement that leads
to the rates and charges adopted by this ordinance, except that CoServ may continue to defer its
carrying charges on plant held for future use.
SECTION 7. That Cities' rate case expenses, including without limitations those of
Diversified Utility Consultants, Inc., are reasonable and shall be reimbursed by CoServ.
Page 3 of 5
S:\Our Documents\Ordinances\05\CoServ Settlement Ord.do¢
SECTION 8. That the issue of the recovery of rate case expenses incurred by CoServ
Gas be severed from consideration of the revised base rate tariffs and that the City retains
jurisdiction over the rate expense reimbursement issue until March 1, 2005, subject to a second
thirty-day extension of the City's jurisdiction by CoServ.
SECTION 9. That CoServ may not file for a further increase in base rates that is
intended to become effective prior to September 1, 2006.
SECTION 10. That adoption of a most favored nations provision is reasonable and
appropriate and that any concession granted to any city is, at the discretion of the City Council,
to be implemented in the City.
SECTION 11. That all relief requested by CoServ not specifically addressed herein is
denied.
SECTION 12. In order to ensure that rates and charges assessed by CoServ in Denton
are just and reasonable to both CoServ 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 fight and privilege to exercise any
authority and power granted to it under any applicable law, ordinance or administrative rule or
regulation.
SECTION 13. If CoServ disputes all or any portion of this Ordinance, prior to filing an
appeal with the Railroad Commission of Texas, CoServ 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 in this Section 13. 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 CoServ to set forth the aspects of this Ordinance which CoServ 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 any 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 14. That it is hereby officially found and determined that the meeting at
which this Ordinance is passed is open to the public as required by law and that public notice of
the time, place and purpose of said meeting was given as required.
SECTION 15. This Ordinance shall take effect and be in full force and effect from and
after the date of its adoption.
SECTION 16. That the City Secretary is hereby directed to forward a copy of this
ordinance, constituting final action on the CoServ application, to the appropriate designated
Page 4 of 5
S:\Our Documents\Ordinances\05\CoServ Settlement Ord.doc
representative of the Company, Charles D. Harrell, Chief Financial Officer, CoServ Gas Ltd.,
7701 South Stemmons, Corinth, Texas 76210-1842, within 10 days.
PASSED AND APPROVED this the/¢3f/~ day of C~7?~.~f-- , 2005.
/
,t~ -~ULINE-'BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
BY:
Page 5 of 5
Rate Schedule 5
RATE R - RESIDENTIAL SALES
Applicable to:
Effective Date:
Entire System
February 1,2005
Page 1 of 2
Application of Schedule
Schedule applies to all Residential Customers
Monthly Base Rate
Customer's base monthly bill will be calCUlated using the following Customer and Ccf
charges:
Char,qe Amount
(TO BE FILLED IN BY THE COMPANY)
Purchased Gas Factor
In addition to the base monthly bill above, each customer's bill will include a Purchases
Gas Factor to account for pumhased gas costs and computed in accordance with
CoServ Purchased Gas Factor Schedule No. 2
Taxes
In addition to the monthly charges above,, each customer's bill will include a charge for
an amount equivalent to the customer's proportional part of the city franchise fees, state
gross receipts taxes, or other governmental levies payable by the Company, exclusive
of federal income taxes. Municipal franchise fees are determined by each municipality's
franchise ordinance. Each municipality's franchise ordinance will specify the
percentage and applicability of franchise fees. From time to time, the tax factor may be
adjusted, if required, to account for any over- or under-recovery of municipal franchise
fees by the Company and to include an amount equivalent to the proportionate part of
any new tax or increased franchise fee or tax, or any other governmental imposition,
rental fee, or charge levied, assessed or imposed subsequent to the effective date of
this tariff by any governmental authority, including districts, created under the laws of
the State of Texas. The Company will also collect sales taxes where applicable.
Rate Schedule 5
RATE R - RESIDENTIAL SALES
Applicable to:
Effective Date:
Entire System
February 1,2005
Page 2 of 2
Surchar.qes
In addition to the monthly charges above, each customer's bill will include an amount for
surcharges calculated in accordance with the applicable rider(s).
Line Extension Policy
The company has the right to contract with individual customers for the installation of
gas facilities as provided for by the city franchise. Upon the request of a prospective
new residential or commercial customer for service in an area served by CoServ Gas,
CoServ Gas will extend its main lines up to 100 feet from an existing CoServ Gas main
in the Public Rights of Way, without charge. The 100-foot allowance applies to a single
customer or to a group of customers requesting service from the same extension.
Customers requesting mainline extensions in excess of 100 feet shall bear the cost of
any additional main, and shall bear the cost of all yard lines, service lines, customer
meters and regulators, and appurtenant equipment, in accordance with the charges
listed in item 12, Line Extension and Installation, of Rate M, Miscellaneous Service
Charges. CoServ Gas is not required to extend its mains or facilities if the customer will
not use gas for space heating and water heating, or the equivalent load, at a minimum
Rate Schedule 5
RATE R - RESIDENTIAL SALES
Applicable to:
Effective Date:
Entire System
November 1,2005
Page 1 of 2
Application of Schedule
Schedule applies to all Residential Customers
Monthly Base Rate
Customer's base monthly bill will be calculated using the following Customer and Ccf
charges:
Char.qe Amount
(TO BE FILLED IN BY THE COMPANY)
Purchased Gas Factor
In addition to the base monthly bill above, each customer's bill will include a Pumhases
Gas Factor to account for pumhased gas costs and computed in accordance with
CoServ Pumhased Gas Factor Schedule No. 2
Taxes
In addition to the monthly charges above, each customer's bill will include a charge for
an amount equivalent to the customer's proportional part of the city franchise fees, state
gross receipts taxes, or other governmental levies payable by the Company, exclusive
of federal income taxes. Municipal franchise fees are determined by each municipality's
franchise ordinance. Each municipality's franchise ordinance will specify the
pementage and applicability of franchise fees. From time to time, the tax factor may be
adjusted, if required, to account for any over- or under-recovery of municipal franchise
fees by the Company and to include an amount equivalent to the proportionate part of
any new tax or increased franchise fee or tax, or any other governmental imposition,
rental fee, or charge levied, assessed or imposed subsequent to the effective date of
this tariff by any governmental authority, including districts, created under the laws of
the State of Texas. The Company will also collect sales taxes where applicable.
Rate Schedule 5
RATE R - RESIDENTIAL SALES
Applicable to:
Effective Date:
Entire System
November 1, 2005
Page 2 of 2
Surchar.qes
In addition to the monthly charges above, each customer's bill will include an amount for
surcharges calculated in accordance with the applicable rider(s).
Line Extension Policy
The company has the right to contract with individual customers for the installation of
gas facilities as provided for by the city franchise. Upon the request of a prospective
new residential or commercial customer for service in an area served by CoServ Gas,
CoServ Gas will extend its main lines up to 100 feet from an existing CoServ Gas main
in the Public Rights of Way, without charge. The 100-foot allowance applies to a single
customer or to a group of customers requesting service from the same extension.
Customers requesting mainline extensions in excess of 100 feet shall bear the cost of
any additional main, and shall bear the cost of all yard lines, service lines, customer
meters and regulators, and appurtenant equipment, in accordance with the charges
listed in item 12, Line Extension and Installation, of Rate M, Miscellaneous Service
Charges. CoServ Gas is not required to extend its mains or facilities if the customer will
not use gas for space heating and water heating, or the equivalent load, at a minimum
Rate Schedule 5
RATE R - RESIDENTIAL SALES
Applicable to:
Effective Date:
Entire System
August 1, 2006
Page 1 of 2
,Application of Schedule
Schedule applies to all Residential Customers
M on_._qg_L~y._Bas e Rate
Customer's base monthly bill will be calculated using the following Customer and Ccf
charges:
Charqe
Customer Charge
Volumetric Charge:
First 0 Ccf to 20 Ccf
Next 50 Ccf
All Additional Ccf
_Purchased Gas Factor
Amount
$9.00 per month, plus
$0.19437 per Ccf
$0.14437 per Ccf
$0.09437 per Ccf
In addition to the base monthly bill above, each customer's bill will include a Purchases
Gas Factor to account for purchased g~s costs and computed in accordance with
CoServ Purchased Gas Factor Schedule No. 2
Taxes
In addition to the monthly charges above, each customer's bill will include a charge for
an amount equivalent to the customer's proportional part of the city franchise fees, state
gross receipts taxes, or other governmental levies payable by the Company, exclusive
of federal income taxes. Municipal franchise fees are determined by each municipality's
franchise ordinance. Each municipality's franchise ordinance will specify the
percentage and applicability of franchise fees. From time to time, the tax factor may be
adjusted, if required, to account for any over- or under-recovery of municipal franchise
fees by the Company and to include an amount equivalent to the proportionate part of
any new tax or increased franchise fee or tax, or any other governmental imposition,
rental fee, or charge levied, assessed or imposed subsequent to the effective date of
this tariff by any governmental authority, including districts, created under the laws of
the State of Texas. The Company will also collect sales taxes where applicable.
Rate Schedule 5
RATE R - RESIDENTIAL SALES
Applicable to:
Effective Date:
Entire System
August 1,2006
Page 2 of 2
Surchar,cles
In addition to the monthly charges above, each customer's bill will include an amount for
surcharges calculated in accordance with the applicable rider(s).
Line Extension Policy
The company has the right to contract with individual customers for the installation of
gas facilities as provided for by the city franchise. Upon the request of a prospective
new residential or commercial customer for service in an area served by CoServ Gas,
CoServ Gas will extend its main lines up to 100 feet from an existing CoServ Gas main
in the Public Rights of Way, without charge. The 100-foot allowance applies to a single
customer or to a group of customers requesting service from the same extension.
Customers requesting mainline extensions in excess of 100 feet shall bear the cost of
any additional main, and shall bear the cost of all yard lines, service lines, customer
meters and regulators, and appurtenant equipment, in accordance with the charges
listed in item 12, Line Extension and Installation, of Rate M, Miscellaneous Service
Charges. CoServ Gas is not required to extend its mains or facilities if the customer will
not use gas for space heating and water heating, or the equivalent load, at a minimum
Rate Schedule 6
RATE C - COMMERCIAL SALES
Applicable to:
Effective Date:
Entire System
February 1,2005
Page 1 of 2
Application of Schedule
Schedule applies to all Commercial Customers
Monthly Base Rate
Customer's base monthly bill will be calculated using the following Customer and Ccf
charges:
Charge Amount.
(TO BE FILLED IN BY THE COMPANY)
Purchased Gas Factor
In addition to the base monthly bill above, each customer's bill will include a Purchases
Gas Factor to account for purchased gas costs and computed in accordance with
CoServ Purchased Gas Factor Schedule No. 2
Taxes
In addition to the monthly charges above, each customer's bill will include a charge for
an amount equivalent to the customer's proportional part of the city franchise fees, state
gross receipts taxes, or other governmental levies payable by the Company, exclusive
of federal income taxes. Municipal franchise fees are determined by each municipality's
franchise ordinance. Each municipality's franchise ordinance will specify the
percentage and applicability of franchise fees. From time to time, the tax factor may be
adjusted, if required, to account for any over- or under-recovery of municipal franchise
fees by the Company and to include an amount equivalent to the proportionate part of
any new tax or increased franchise fee or tax, or any other governmental imposition,
rental fee, or charge levied, assessed or imposed subsequent to the effective date of
this tariff by any governmental authority, including districts, created under the laws of
the State of Texas. The Company will also collect sales taxes where applicable.
Rate Schedule 5
RATE R - RESIDENTIAL SALES
Applicable to:
Effective Date:
Entire System
February 1,2005
Page 2 of 2
SurcharRes
In addition to the monthly charges above, each customer's bill will include an amount for
sumharges calculated in accordance with the applicable rider(s).
Line Extension Policy
The company has the right to contract with individual customers for the installation of
gas facilities as provided for by the city franchise. Upon the request of a prospective
new residential or commercial customer for service in an area served by CoServ Gas,
CoServ Gas will extend its main lines up to 100 feet from an existing CoServ Gas main
in the Public Rights of Way, without charge. The 100-foot allowance applies to a single
customer or to a group of customers requesting service from the same extension.
Customers requesting mainline extensions in excess of 100 feet shall bear the cost of
any additional main, and shall bear the cost of all yard lines, service lines, customer
meters and regulators, and appurtenant equipment, in accordance with the charges
listed in item 12, Line Extension and Installation, of Rate M, Miscellaneous Service
Charges. CoServ Gas is not required to extend its mains or facilities if the customer will
not use gas for space heating and water heating, or the equivalent load, at a minimum
Rate Schedule 6
RATE C - COMMERCIAL SALES
Applicable to: Entire System
Effective Date: November 1,2005
Application of Schedule
Schedule applies to all Commercial Customers
Monthly Base Rate
Page 1 of 2
Customer's base monthly bill will be calculated using the following Customer and Ccf
charges:
Charge Amount
(TO BE FILLED IN BY THE COMPANY)
Purchased Gas Factor
In addition to the base monthly bill above, each customer's bill will include a Purchases
Gas Factor to account for purchased gas costs and computed in accordance with
CoServ Purchased Gas Factor Schedule No. 2
Taxes
In addition to the monthly charges above, each customer's bill will include a charge for
an amount equivalent to the customer's proportional part of the city franchise fees, state
gross receipts taxes, or other governmental levies payable by the Company, exclusive
of federal income taxes. Municipal franchise fees are determined by each municipality's
franchise ordinance. Each municipality's franchise ordinance will specify the
percentage and applicability of franchise fees. From time to time, the tax factor may be
adjusted, if required, to account for any over- or under-recovery of municipal franchise
fees by the Company and to include an amount equivalent to the proportionate part of
any new tax or increased franchise fee or tax, or any other governmental imposition,
rental fee, or charge levied, assessed or imposed subsequent to the effective date of
this tariff by any governmental authority, including districts, created under the laws of
the State of Texas. The Company will also collect sales taxes where applicable.
Rate Schedule 5
RATE R-RESIDENTIAL SALES
Applicable to:
Effective Date:
Entire System
November 1,2005
Page 2 of 2
Surchar.qes
In addition to the monthly charges above, each customer's bill will include an amount for
sumharges calculated in accordance with the applicable rider(s).
Line Extension Policy
The company has the right to contract with individual customers for the installation of
gas facilities as provided for by the city franchise. Upon the request of a prospective
new residential or commercial customer for service in an area served by CoServ Gas,
CoServ Gas will extend its main lines up to 100 feet from an existing CoServ Gas main
in the Public Rights of Way, without charge. The 100-foot allowance applies to a single
customer or to a group of customers requesting service from the same extension.
Customers requesting mainline extensions in excess of 100 feet shall bear the cost of
any additional main, and shall bear the cost of all yard lines, service lines, customer
meters and regulators, and appurtenant equipment, in accordance with the charges
listed in item 12, Line Extension and installation, of Rate M, Miscellaneous Service
Charges. CoServ Gas is not required to extend its mains or facilities if the customer will
not use gas for space heating and water heating, or the equivalent load, at a minimum
Rate Schedule 6
RATE C - COMMERCIAL SALES
Applicable to:
Effective Date:
Entire System
August 1, 2006
Page 1 of 2
Application of Schedule
Schedule applies to all Commercial Customers
Monthly Base Rate
Customer's base monthly bill will be calculated using the following Customer and Ccf
charges:
Char,qe
Customer Charge
Volumetric Charge:
First 0 Ccf to 300 Ccf
Next 200 Ccf
All Additional Ccf
Amount
$15.50 per month, plus
$0.24436 per Ccf
$0.19436 per Ccf
$0.14436 per Ccf
Purchased Gas Factor
In addition to the base monthly bill above, each customer's bill will include a Purchases
Gas Factor to account for purchased gas costs and computed in accordance with
CoServ Purchased Gas Factor Schedule No. 2
Taxe~
In addition to the monthly charges above, each customer's bill will include a charge for
an amount equivalent to the customer's proportional part of the city franchise fees, state
gross receipts taxes, or other governmental levies payable by the Company, exclusive
of federal income taxes. Municipal franchise fees are determined by each municipality's
franchise ordinance. Each municipality's franchise ordinance will specify the
percentage and applicability of franchise fees. From time to time, the tax factor may be
adjusted, if required, to account for any over- or under-recovery of municipal franchise
fees by the Company and to include an amount equivalent to the proportionate part of
any new tax or increased franchise fee or tax, or any other governmental imposition,
rental fee, or charge levied, assessed or imposed subsequent to the effective date of
this tariff by any governmental authority, including districts, created under the laws of
the State of Texas. The Company will also collect sales taxes where applicable.
Rate Schedule 5
RATE R - RESIDENTIAL SALES
Applicable to:
Effective Date:
Entire System
August 1, 2006
Page 2 of 2
Surchar.qes
In addition to the monthly charges above, each customer's bill will include an amount for
sumharges calculated in accordance with the applicable rider(s).
Line Extension Policy
The company has the right to contract with individual customers for the installation of
gas facilities as provided for by the city franchise. Upon the request of a prospective
new residential or commercial customer for service in an area served by CoServ Gas,
CoServ Gas will extend its main lines up to 100 feet from an existing CoServ Gas main
in the Public Rights of Way, without charge. The 100-foot allowance applies to a single
customer or to a group of customers requesting service from the same extension.
Customers requesting mainline extensions in excess of 100 feet shall bear the cost of
any additional main, and shall bear the cost of all yard lines, service lines, customer
meters and regulators, and appurtenant equipment, in accordance with the charges
listed in item 12, Line Extension and Installation, of Rate M, Miscellaneous Service
Charges. CoServ Gas is not required to extend its mains or facilities if the customer will
not use gas for space heating and water heating, or the equivalent load, at a minimum
Rate Schedule 10
RATE M - MISCELLANEOUS SERVICE CHARGES
Applicable to: Entire System Page 1 of 2
Effective Date: February 1, 2005
Application
The service charges listed below are in addition to any other charges under the Company's Tariff
for Gas Service and will be applied for the condition described. Other services not covered by
these standard conditions will be charged on the basis of an estimate for the job or the
Company's actual cost plus appropriate surcharges.
Applicable Charges
Service
Amount of
Charge Name and Description
No. Charge
Connection Charge During Business Hours
During standard business hours, for each recormection 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
1 the following exceptions: $ 65.00
(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
Connection Charge After Business Hours
After standard business hours, for each recmmection 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
2 the following exceptions: $ 97.00
(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
Field Read of Meter
3 A read for change charge when it is necessary for the Company to
read the meter at a currently served location because of a change in $ 19.00
the billable party.
4 Returned Check Charges $ 20.00
Returned check handling charge for each check returned to
Company for any reason.
Charge for Temporary Discontinuance of Service - Residential
Whenever service has been temporarily disconnected at the request
5 of the customer, this charge plus the appropriate Connection Charge $ 65.00
will be made to reestablish such service for that customer at the
same address.
Charge for Temporary Discontinuance of Service- NonResidential
Whenever service has been temporarily disconnected at the request
6 of the customer, this charge plus the appropriate Connection Charge $ 107.00
will be made to reestablish such service for that customer at the
same address.
Charge for Meter Testing
The Company shall, upon request of a customer, make a test of the
accuracy of the meter serving that customer. The Company shall
inform the customer of the time and place of the test and permit the
customer or his authorized representative to be present if the
7 customer so desires. If no such test has been performed within the $ 15.00
previous four (4) years for the same customer at the same location,
the test shall be performed without charge. If such test has been
performed for the same customer at the same location within the
previous four (4) years, the Company will charge the Meter Test
Fee. The customer must be properly informed of the result of any
test on a meter that services him.
Charge for Service Calls During Business Itoui's
A Service Call Charge is made for responding to a service call
8 during standard business hours that is determined to be a customer $ 26.00
related problem rather than a Company or Company facilities
problem.
Charge for Service Calls After Business Hours
9 A Service Call Charge is made for responding to a service call after $ 40.00
standard business hours that is determined to be a customer related
problem rather than a Company or Company facilities problem.
Tampering Charge
No Company Meters, equipment, or other property, whether on
Customer's premises or elsewhere, are to be tampered with or
interfered with for any reason. A Tampering Charge is made for
unauthorized reconnection or other tampering with Company
10 metering facilities or a thef~ of gas service by a person on the $ 125.00
customer's premises or evidence by whomsoever at customer's
premises. An additional cost for the cost of repairs and/or
replacement of damaged facilities and the installation of protective
facilities or relocation of meter are made at cost plus appropriate
charges as may be detailed in the Company's Service Rules and
Regulations
Credit/Debit Card Payments Charge
11 Bill payments using credit cards, debit cards, and electronic checks Actual Cost
(includes third-party transaction fees and administrative costs).
Rate Schedule 10
RATE M - MISCELLANEOUS SERVICE CHARGES
Applicable to: Entire System Page 2 of 2
Effective Date: February 1, 2005
Line Extension and Installation Charges
Extension and installation of new mains, service lines, risers,
12 fittings and other appurtenant equipment pursuant to main Actual Cost
extension policy in municipal franchise. Credit for main pursuant
to municipal franchise. The customer is responsible for the
installation of yard tine and yard line risers.
13 Construction Crew Charges Actual Cost
All labor charges if a construction crew is required.
14 Construction Costs Charges Actual Cost
All other construction charges.