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2003-111AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PRESCRIBING REGULATIONS REGARDING A RATE FILING PACKAGE TO INCLUDE SPECIFIC SCHEDULES, DATA, AND OTHER INFORMATION TO BE PROVIDED TO THE MUNICIPALITY BY GAS UTILITIES AS PART OF THE STATEMENT OF INTENT TO INCREASE RATES UNDER THE GAS UTILITY REGULATORY ACT; PROVIDING THAT THIS ORDINANCE IS CUMULATIVE AND THAT OTHER INFORMATION MAY BE REQUIRED TO BE SUBMITTED; PROVIDING FOR THE USE OF FORMS AS PART OF THE STATEMENT OF INTENT; REQUIRING THAT THE RATE FILING PACKAGE BE SUPPORTED BY AFFIDAVIT; PROVIDING FOR EXPERT ASSISTANCE; PROVIDING FOR COMPLIANCE WITH OTHER LAWS; PROVIDING FOR A WAIVER OF THESE FILING REQUIREMENTS ON GOOD CAUSE BUT NO WAIVER OF JURISDICTION; PROVIDING FOR THE TREATMENT OF PROPRIETARY GAS UTILITY INFORMATION; PROVIDING FOR NOTICE; PROVIDING FOR A SAVINGS CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Gas Utility Regulatory Act § 103.001 grants the governing body of a municipality exclusive original jurisdiction, subject to certain limitations, over the rates, operations, and services of gas utilities to ensure that fair, just, and reasonable rates and adequate and efficient services are provided by gas utilities operating within the municipality; and WHEREAS, Gas Utility Regulatory Act § 104.102 requires a gas utility, seeking to increase rates, to provide the Regulatory Authority with a Statement of Intent To Increase Rates, which includes a detailed statement of each proposed increase; and WHEREAS, the Gas Utility Regulatory Act does not provide a listing of the specific schedules, information, and other data that the municipality must examine in fulfilling its statutory role as a Regulatory Authority; and WHEREAS, Gas Utility Regulatory Act § 103.021(a) authorizes the municipality to require that the gas utility submit such information as necessary to make a reasonable determination of rate base, expenses, investment, and rate of return in the municipality; and WHEREAS, Gas Utility Regulatory Act § 104.102(c)(2)(D) requires the gas utility to include in its Statement of Intent To Increase Rates any other information required by the local Regulatory Authority's roles and regulations; and WHEREAS, Section 13.04 of the City Charter gives the City Council the authority to enact and enforce such reasonable regulations and restrictions over public utilities operating within the City of Denton, Texas, hereinafter referred to as "City" as may be deemed desirable or conducive to the safety, welfare and accommodations of the public; and WHEREAS, the City finds that the use of a Rate Filing Package, with associated schedules, testimony, narrative and work papers, as part of the Statement of Intent to increase rates, would help the City in making its determinations with regard to the proposed gas rate increase and will facilitate a fair, just and reasonable determination of the gas utility's rate base, expenses, investment, and rate of return as well as reduce the rate case expenses resulting from review of these cases; and WHEREAS, the City finds that the provision of a Rate Filing Package would minimize the amount of discovery necessary to enable the City to conduct a reasonable investigation of the issues raised by a gas utility rate increase proceeding within the time frames specified by the Gas Utility Regulatory Act; and WHEREAS, the City wishes to encourage gas utilities, operating within the City limits, to present their case in full as it is initially presented for the City's consideration; and WHEREAS, the City finds that requiring gas utilities operating within the municipality to include this additional information as part of their Statement of Intent to increase rates will promote the public good; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY ORDAINS: SECTION 1. Minimum Filing Requirements for Gas Utility Statement of Intent to Increase Rates. A. In order to initiate a rate increase proceeding with this City and trigger the statutory deadlines under the Gas Utility Regulatory Act, a gas utility must file with the City Secretary a statement of intent to increase rates in accordance with the requirements and procedures set forth in this Ordinance. A statement of intent shall be deemed sufficient as of the date of initial filing unless the designated City official, within ten (10) days of the time the statement is filed in the case of changes which are not major rate changes and within thirty (30) days of the tune the statement is filed in the case of major rate changes, notifies the utility by letter of the insufficiencies in the statement. Upon notice of insufficiency, the statutory deadlines, including those in Gas Utility Regulatory Act § 104.107, shall be calculated based on the date of filing with the City Secretary of an amended statement of intent correcting the insufficiencies consistent with the notice letter. B. The gas utility may, within seven days after the notice of insufficiency is received, file an appeal to the City Council. If the City Council has not issued a decision that the statement of intent is insufficient within 35 days after the filing of an appeal by the gas utility or if the City Council determines that the application is substantially complete, then the application is deemed sufficient as of the date of initial filing. If the City Council determines that the statement of intent is insufficient, then the City shall issue a written decision directing the gas utility to amend its statement of intent and correct the insufficiency. The statutory deadlines, including those in Gas Utility Regulatory Act § 104.107, shall be calculated based Page 2 of 16 on the date of filing with the City Secretary of an amended statement of intent correcting the insufficiencies consistent with the City Council's decision. SECTION 2. Statement of Intent regarding rate changes that are not major changes. A. Statements of intent to change rates in a manner which do not constitute a "major change" as that term is defined in Gas Utility Regulatory Act § 104.101 shall include the following information: 1. A complete set of the proposed tariff revisions. 2. A statement specifying in detail the classes and numbers of utility customers affected, and the change in gross revenues (in absolute dollar amounts and in percentage terms, by customer class and by total) that the utility expects the revised tariffs to furnish as opposed to those furnished by existing tariffs. 3. All other information, if any, required by the Act. 4. A statement that the proposed change of rates if authorized will not effect a "major change" as that term is defined in Gas Utility Regulatory Act § 104.101. B. The City or its designated representative may require the gas utility to produce further information in addition to that required here, including the filing of any or all schedules associated with a statement of intent for major rate changes, if needed to assist the City in making its rate determinations. SECTION 3. Statement of Intent regarding rate changes that are major changes. If the gas utility is requesting a major rate change or a rate increase, which when applied on a total company basis results in an increase of more than the greater of $100,000 or 2.5 % in aggregate total company revenues over the test year revenues, then the company shall include as part of its Statement of Intent all schedules and information provided for by this section as well as all additional information, if any, that may be required by this Ordinance or the Gas Utility Regulatory Act. The elements comprising this filing shall consist as follows: PART I - General Instructions A. The gas utility shah provide all information in support of its request for a major rate increase, including information required to be filed on the schedules set forth in this Ordinance, on a total company basis. "Total Company" information must include the entire gas distribution system in Texas including all cities and environs as well as any transmi.~sion facilities located on the City side of the City gate. The terms "system" and "total company" are equivalent. B. The gas utility shall deliver two (2) complete sets of the rate filing package to the City. The utility must also separately ~e with the City two (2) complete sets of work papers used in the preparation of the schedules. One copy of each schedule included in the rate filing package shall be delivered to the City in electronic form on compact discs. All electronic files used to compute amounts in the utility's filing shall be provided in their original Page 3 of 16 format including formulas (as Excel, Lotus, Word, WordPerfect, etc files). All links shall be intact and all formulas should function as originally utilized by the utility in preparing its filing. C. The gas ufflity shall ensure that all schedules shall be referenced by schedule number and name as indicated herein and shall identify the witness/individual, if any, sponsoring the schedule. Schedules, which are not applicable, shall be so designated. All lines on each schedule in the filing shall be numbered consecutively starting from the number 1 on each page. Do not number blank lines. D. The gas utility shall ensure that all work papers shall be clearly labeled "Work paper" and shall clearly indicate the rate filing schedule to which it applies. (For example, W/P A-2/1 would be the first page of the work papers that provide supporting and detailed information about the items presented on Schedule A- 2.) Work papers shall provide all assumptions, calculations, source documents and other data supporting the amounts presented on the schedules where the utility presents its request to change any amount that may be included in determining gas rates charged to customers. PART II - Rate Filing Package Schedules Schedule A: Schedule A Overall Cost of Service The gas utility shall provide a schedule presenting its total company revenue requirement or overall cost of service including the cost of gas. The following amounts shall be shown in separate columns across the page: a. Historic test year per books, unadjusted. b. Year-ending adjustments. c. Known & measurable changes. d. Claimed revenue deficiency. e. Proposed revenue requirement. Schedules A-1 The gas utility shall provide a schedule summarizing on a total company basis all other operating revenues for the historic test year unadjusted, all proposed adjustments and the ut'flity's "as adjusted amount." Include a description of each item of other revenues. Schedule A-2 THIS SCHEDULE WILL DETAIL EACH REVENUE AND EXPENSE ADJUSTMENT SUMMARIZED ON SCHEDULE A. The gas utility shall provide a schedule showing the calculation of each of its proposed adjustments to test year actual per book amounts. The proposed adjustments shall be shown on a separate schedule in this section and shall be designated "Schedule A-2-x". References to supporting work papers shall be shown on each schedule. Schedule A-3 The gas utility shall provide a schedule detailing trial balance for the utility on a total company basis. The trial balance shall include all accounts and sub- Page 4 of 16 accounts ma'mtained in the utility's normal course of business. A copy of the utility's chart of accounts shall be included in the work papers section for this schedule. Schedule The gas utility shall provide a schedule detailing test year unadjusted Operations and Maintenance Expenses and Administrative & General Expenses by NARUC account and sub-account by month for the total company. The expenses shall be shown in columnar form, as follows, with subtotals for each functional classification: a. Operation and maintenance expense by account, as booked for the test year, and the total for each account. b. Adjustments, if any, to the per books expense. c. Total adjusted operation and maintenance expenses cla'uned. Schedule A-4a The gas utility shall provide a schedule detailing test year unadjusted Operations and Maintenance Expenses and Administrative and General Expense by NARUC account and sub-account for the total company. The expenses shall be shown in columnar form, as follows, with subtotals for each functional classification: a. Total company operation and maintenance expenses by account, as booked for the test year. b. Allocation factor applied to each account to arrive at the amount assigned to the portion of the total company for which rate relief is sought. c. Per book Operation and maintenance expenses claimed for that portion of the system for which rate relief is sought. Schedule B: Schedule B-1 Invested Capital & Return (System only unless otherwise stated) The gas utility shah provide a total company schedule titled "Summary of Invested Capital," which shall include each item that the utility is proposing to include as invested capital upon which the requested return is calculated. The historic test year rate of return shall be shown at the bottom of column (b). The following amounts shall be shown in separate columns across the page: a. Historic test year per books, unadjusted. b. Proposed adjustments c. As adjusted. Schedule B-2 The gas ut'flity shall provide a schedule detailing the adjustments presented by the utility on Schedule B-1. On separate pages in this set of schedules, the utility shall show each proposed adjustment to the historic test year unadjusted amounts for each item of invested capital. The schedules shall be sequentially designated Schedule B-2-x. Schedule B-3 The gas utility shall provide a total company schedule detailing all post-test year adjustments to plant in service. Reference shall be made to other Page 5 of 16 Schedule C: Schedule C-1 Schedule C-2 Schedule Schedule D: Schedule D-1 Schedule D-2 Schedu~D-3 Schedule E: Schedule E-1 adjustments to the unadjusted cost of service made to be consistent with the post-test year adjustments shown on this schedule. Original Cost of Plant in Service The gas utility shall provide a schedule presenting the original unadjusted cost of plant in service by NARUC plant account as of the end of the historic test year for the total company in the first column. The second column shall indicate how the total company amounts were allocated to the system. The third column shall present the system's original unadjusted cost of plant in service. Proposed adjustments shall be shown in the fourth column with references to other schedules and work papers where the detailed calculation of each adjustment is presented. The gas utility shall provide a schedule presenting the original unadjusted cost of plant in service by NARUC plant account by month for the historic test year plus the last month of the previous twelve-month period for the system. The gas utility shall provide a schedule detailing the system's construction work in progress as of the end of the historic test year, unadjusted. The following information shall be provided for each construction project: a. Date project was begun. b. Estimated completion date. c. Purpose of the project. d. Test year end unadjusted balance. e. Estimated completed cost. f. Town/city to which the construction related. Accumulated Depredation The gas utility shall provide a schedule presenting total company accumulated depreciation by NARUC account as of the end of the historic test year, unadjusted. Each proposed adjustment to the historic test year amounts shall be shown in a separate column by NARUC account with the "as adjusted" amount shown in the final column. The gas utility shall provide a total company schedule presenting the calculation of depreciation expense for the unadjusted historic test year and for the utility's adjusted test period. If the utility is proposing to change depreciation rates, the gas utility shall provide the Depreciation Rate Study herein. Detail of Other Rate Base Items The gas utility shall provide a schedule on a total company basis presenting the utility's calculation of cash working capital. If a lead/lag study is presented, all data supporting that study shall be presented in this schedule and/or in Page 6 of 16 supporting work papers. The utility shall demonstrate that the samples used in the lead/lag study were randomly determined and are statistically representative. Schedule E-2 The gas utility shall provide a schedule on a total company basis presenting all information pertaining to the sale of accounts receivable including the terms of the contract. The schedule shall demonstrate that the impact of selling the receivables during the historic test year on the cost of service was less than if the receivables had not been sold. Schedule E-3 The gas utility shall provide a schedule on a total company basis presenting monthly balances for Materials & Supplies and Prepayments. The balances shall be presented by NARUC account and sub-account maintained by the utility. (The calculation of the amount of inventories the utility proposes to include in invested capital shall be included in the B-2 schedules.). Schedule E-4 The gas utility shall provide a schedule on a total company basis presenting the monthly balances for customer deposits and customer construction advances. (The calculation of the amount of customer advances and construction advances the utility proposes to include in invested capital shall be included in the B-2 schedules.). Schedule F: Schedule F-1 Capital Structure & Return The gas utility shall provide a schedule on a total company basis summarizing the utility's proposed weighted average cost of capital. Schedule F-2 The gas utility shall provide a schedule on a total company basis present'mg the details of the utility's common stock and claimed cost of equity capital. Work papers shall be provided to support the requested cost of equity capital. Schedule F-3 The gas utility shall provide a schedule on a total company basis presenting the details of the utility's preferred stock including any applicable discounts or premium. The calculation of the weighted average cost of debt shall also be presented. Schedu~F-4 The gas utility shall provide a schedule on a total company basis presenting, separately, the details of the utility's long-term and short-term debt, including the embedded cost of debt. The calculation of the weighted average cost of debt shall also be presented. Schedule F-5 The gas utility shall provide a copy of the company's latest form 10-K as well as Form 10-Q for each of the last two calendar quarters. If the utility filing for the rate increase is not required to file these forms, provide the forms for the organization, which is requked to file them. Page 7 of 16 Schedule G: Schedule G-1 Accounting Information The gas utility shall provide a schedule on a total company basis presenting the following total utility payroll information for each month of the test year and for each of the three years prior to the test year in the format described below. a. Column (a) - list the twelve months of the test year and each of the three years prior. b. Column (b) - total utility regular payroll. c. Column (c) - total utility overtime payroll. d. Column (d) - total utility other pay. e. Column (e) - total utility payroll. f. Column (0 - total number of employees. This schedule will show the payroll information for each month of the test year and the annual information for each of the three years prior to the test year. If the test year is not a calendar year, the gas utility shall provide the information for each of the three years prior to the test year for the same time period as the test year. (I.e., if the test year ended September 30, then provide the payroll date for each of the three prior twelve month periods ended September 30.) Schedule G-2 Schedule G-3 Schedule G-4 Schedule G-5 The gas utility shall provide the following payroll information for the test year and each of the three years prior: a. Total company payroll. b. Total company payroll charged to expense. c. Total company payroll charged to capital accounts. d. Total company payroll charged to clearing accounts. The gas utility shall provide all payments other than standard pay or standard overtime pay (i.e., bonuses, severance pay, etc.) made to employees during the three most recent calendar years prior to the test year as well as the months of the test year. State whether the company is requesting recovery of these payments and where they are included. The gas utility shall provide the following information about bad debt expense: a. Company's policy for writing off bad debts. b. Methodology used to calculate monthly bad debts. c. For the test year, list the monthly revenues, the corresponding uncollectible expense, and the amount of net bad debts actually written off for each of the three years prior to the test year as well as for the test year for the total company. The gas utility shall present a summary of advertising expenses for the test year for the total company: a. Amount included in account 909. b. Amount included in account 913. Page 8 of 16 Schedule G-6 Schedule G- 7 Schedule G-8 Schedule G-9 Schedule G-lO Schedule G-II Schedule G-12 Schedule H: c. Amount included in account 930. d. Six representative advertisements, two from each category listed above. The gas utility shall provide details of contributions, donations and dues by month for the historic test year for the total company: a. Payee. b. Amount. c. Purpose. d. Account charged. The gas utility shall provide details of legislative, lobbying, monitoring legislation and any other costs incurred to influence legislation during the historic test year for the total company. These costs would include any housing either leased or owned by the Company or any of its affiliates in Washington, D.C. or Austin, Texas. Include the date of the payment, the payee, the purpose of the payment and the account charged. The gas utility shall provide detail of penalties and fines included in the test year for the total company. Include the date, payee, amount, nature of the penalty and the account charged. The gas utility shall present information on all outside services employed during the test year that appear in the NARUC 900 series accounts. This schedule shall include the following information for the total company: a. Expenses by category and by vendor within the category. b. Identification of expense by NARUC 900 series account numbers. c. Purpose of each vendor's service. The gas utility shall provide detailed information about amounts charged to Miscellaneous General Expenses, NARUC account 930.2, for the historic test year for the total company. The schedule shall include the following information for the total company: a list of all amounts charged to this account during the test year by date. For each charge, provide the name of the payee and a brief description of the services/good received. The gas utility shall provide a schedule detailing the various expenses charged to NARUC account 928 during the test year, the proposed adjustments to test year amounts and the amount requested for each item. Show each amount for the total company. The gas utility shall provide a schedule detailing total company lost and unaccounted for gas for the historic test year and for each of the three calendar years prior to the beginning of the historic test year. Federal Income Taxes Page 9 of 16 Schedule H-1 Schedule H-2 Schedule H-3 Schedule H-4 Schedule I: Schedule 1-1 Schedule-l-2 Schedu~ ~3 The gas utility shall provide a schedule providing the test year FIT and the requested FIT for the total company. Supporting explanations and calculations shall be filed in work papers and shall be referenced to this schedule. The gas utility must include supporting explanations and calculations for each line item. (Total Company) The gas utility shall provide a schedule, which includes a reconciliation detailing those timing differences and other items that would produce federal income taxes at a rate differing from the statutory rate for the test period. The gas utility shall include a complete explanation of all items in the reconciliation. Supporting calculations for each item in the reconciliation shall be filed in the work papers and shall be referenced to this schedule. The gas utility shall provide a schedule of total company test year-end book balances, requested adjustments to those balances and the resulting adjusted balances for accumulated tax deferrals. This schedule shall also show the monthly book balances of accumulated tax deferrals for each of the twelve months of the test year. This schedule shall also include the additions and reductions for the test year. Each item giving rise to the tax deferrals shall be segregated. Allocations to the various systems within the total company shall be shown and supported by calculations and source documentation in the work papers. The gas utility shall provide a schedule supporting the provision for deferred income taxes included in the FIT calculation. Information for each line item must be provided. Work papers supporting the amounts listed shall be included in the filing. Taxes Other than Income Taxes The gas utility shall provide a schedule presenting details of expenses included in NARUC account and sub-accounts 408, Taxes Other than Income Taxes, for the unadjusted test year for the total company. The totals on this schedule should agree with Schedule A-1. The gas utility shall provide in Schedule I-2 and subsequently numbered schedules the calculation of the utility's proposed adjustments to historic test year levels for each tax. For example, Schedule 1-2 might show the detailed calculation of a proposed adjustment to the historic test year cost for property taxes while subsequent schedules would show similar detail for each of the other taxes shown on Schedule I-1. The gas utility shall provide a schedule showing the ad valorem tax expense for the total company for each of the three calendar years immediately prior to the test year. The schedule shall provide the original cost of plant for the total Page 10of16 Schedule J: Schedule J-1 Schedule J-2 Schedule J-3 Schedule J-4 Schedule J-5 Schedu~J-6 Schedule J-7 Schedule J-8 Schedule K: Schedu~K-1 company as of January 1 of each of the four calendar years immediately prior to the test year. Afl'fflate Data The gas utility shall provide a schedule listing all affiliates with which the utility had transactions during the test year. The schedule shall include a description of each affiliate. The gas utility shall provide the most recent organizational chart for the utility system showing both regulated and non-regulated affiliates during the test year. If relationships changed during the test year, the schedule shall explain each such change and its impact on the utility's transactions with affiliates. The gas utility shall provide a schedule presenting on a total company basis the historic test year charges to the utility from affiliates by NARUC account grouped and subtotaled by class of items. The gas utility shall provide a schedule presenting affiliate expenses listed by affiliate and by NARUC account on a per book basis. The schedule shall include specific pro-forma adjustments and expenses shall be presented in the schedule on an adjusted basis for the test year. The gas utility shall provide a schedule presenting any affiliate charges included in capital additions during the historic test year and since the utility's last rate increase. The gas utility shall provide a schedule detailing the adjustments to historic test year unadjusted affiliate transactions including the description, purpose, and amount of each adjustment. This schedule must correlate to Schedule J-4. The gas utility shall provide a schedule detailing, for each affiliate with which the gas utility had transactions during the historic test year, each afftliate's allocation of charges to others including the gas utility. If the gas utility had transactions with any affiliate during the test year, then the schedule shall provide details of all costs allocated to related companies by all such affiliates during the historic test year and explain in detail the basis for each allocation. The gas utility shall provide any other information necessary to support its burden of proof with regard to transactions with affiliates as set out in GURA and by the courts. Cost of Service Analysis The gas utility shall file a functionalized cost of service study and work papers necessary to support the study. All schedules in this section shall also be filed on IBM-compatible computer disks in Excel worksheets. Page 11 of 16 Schedu~K-2 The gas utility shall provide details of revenues for the historic test year by rate class. This data shall include, but not necessarily be limited to revenues from the sales of gas, other revenues, and gas cost adjustment factor revenues. Schedule L: Schedule L-1 Rate design information: The gas utility shall provide a schedule showing on a total company basis the following test year information for each customer class: a. The designation of the class. b. The total number of customers of the class. c. The total consumption in MCF of the customer class. d. The total revenues derived from customers of the class. Customer charge revenues, commodity revenues and base rate revenues shall be separately stated and broken out in the schedule. ScheduleL-2 The gas utility shall provide a schedule presenting for the system in the test year a bill frequency or other analysis showing consumption and number of bills at each rate and for each customer class for which the gas utility maintains such records in the normal course of business. Schedule L-3 The gas utility shall provide a schedule showing the utility's current and proposed rates of return by customer class under the allocation methods proposed for the total company. The utility shall include all work papers used to derive such rates in this filing. PART III - Rate Filing Package Additional Requirements A. In addition to the schedules required by this Ordinance, if the gas utility has filed a statement of intent to increase rates, which constitutes a "major change" in rates as that term is defined in the Gas Utility Regulatory Act § 104.101, then the gas utility must provide the following additional information as part of its statement of intent: 1. A complete set of proposed tariff revisions. 2. A statement specifying in detail each proposed tariff revision, the classes and numbers of utility customers affected thereby, as well as the change in gross revenues (in absolute dollar amounts and in percentage terms-- each by customer class and by total) that the utility expects the revised tariffs to furnish as opposed to those furnished by existing tariffs. 3. Testimony or a narrative shall be included in the rate-filing package. This testimony/narrative shall support the utility's positions with regard to its overall request for rate relief and each proposed adjustment to the historic test year as well as provide the reasons for and explanation of the requested increase. The utility shall submit two (2) copies of the testimony and reports, if any, of company representatives and outside expert witnesses used to support such filing. Page 12 of 16 The names of all other cities in which the gas utility will be making a similar filing. Copies of any press releases relative to the filing issued by the company or utility prior to or at the tune of filing All other information, if any, required by the Gas Utility Regulatory Act. B. In connection with each statement of intent rate filing package for a "major change" in rates, the gas utility shall make available for review any or all of the following information to a designated City official for his inspection or copying upon written request: 1. Voluminous supporting studies, work papers, or documentation relied upon by each individual or witness in the presentation of his testimony. 2. The gas ntility's books of original entry including the general ledger, sub-ledgers, journals, balance sheets, operating income statements, and monthly trial balances by primary account number, for each month during the test year. 3. All work papers used to derive the utility's adjusted value of invested capital, which were not included in the filing package. 4. All work papers used to derive the utility's test year adjusted operating income, which were not included in the filing package. Voluminous information and documents shall be made available for review by the designated City official at a location within the jurisdictional limits of this City unless the City states that such information and documents shall be made available for review at an alternate location. In such event, the utility shall make such information and documents available for review in such other designated city. C. The gas utility shall also make its plants, equipment and other properties or any portion thereof available for inspection and review during normal business hours upon advance notice by the designated City official. SECTION 4. Further information may be requested. A. Where information, data, representations are required by the Gas Utility Regulatory Act, but are not set forth in the specific schedules of this package, the gas utility shall set forth such information in testimony or a narrative and/or additional schedules to be filed with this filing package. B. The City or its designated representative may require the gas utility to produce further information in addition to that submitted in the Statement of Intent, including proprietary information, if reasonably needed to assist the City in making its rate determination. SECTION 5. Forms. Page 13 of 16 For the convenience of the gas utilities in assembling the information required in this Ordinance and for the sake of the convenience of the City in interpreting the information, the City or its designated representative may prescribe the form and format for the submission of the information required in this Ordinance in a Rate Filing Package. Each gas utility shall comply with all applicable forms and formats, which have been so prescribed. SECTION 6. Affidavit required. Each rate filing package and supplement or addendum thereto shall be submitted in the form of an affidavit or have an affidavit attached thereto setting forth that all information contained therein is true and correct. SECTION 7. Expert assistance. Pursuant to Gas Utility Regulatory Act § 103.022, the City reserves the right to select and engage expert rate consultants, accountants, auditors, attorneys, engineers, or any combination thereof to conduct investigations, present evidence, advise and represent the City and assist with litigation in rate making proceedings and to require the utility to reimburse the City for the reasonable costs of such services. SECTION 8. Compliance with law. To the extent of any conflict between any of the terms or provisions herein and any state or federal law, rule or regulation, which has precedence over this chapter as a matter of law, the provisions of such state or federal law, rule or regulation shall prevail. SECTION 9. Interpretation. The provisions of this Ordinance shall not be construed to relieve any gas utility of its obligation to file with and make available to the City, the City Manager, or any other City officer or agency, any information not specified herein which is required to be furnished or made available by state law. Furthermore, each gas utility shall file, furnish and make available to the City or its designated representatives, within such time limits as he or she reasonably prescribe, all information that the City may from time to time lawfully request. SECTION 10. Waiver of schedules, reports, etc. Upon written request of the applicant gas utility, the designated City official may waive the filing of specific schedule or other information required by this Ordinance, if such schedule or information is not otherwise required to be provided by statute as set forth herein. The designated City official may grant a request for waiver only after the utility has shown that the City's ability to make a rate determination would be frustrated by application of the filing requirement to the instant case and that the City has reasonable alternatives to the information subject to the waiver request. Denial of a waiver request renders that fling defective unless it contains an alternative that fully complies with the rules. In such case, the application will be Page 14 of 16 processed using the alternative proposal as if the waiver had not been requested. Applications rendered defective may be dismissed without prejudice. SECTION 11. Non-waiver of Jurisdiction. Nothing conta'med in this Ordinance shall be construed as constituting a waiver or surrender of jurisdiction by the City over the regulation of the service provided by any utility. The City reserves the right to adopt further modifications to the regulations, which are adopted in this Ordinance, by reference or to supercede the same in whole or in part to the extent of its jurisdictional area. SECTION 12. Proprietary Gas Utility Information. A. A gas utility providing information required by this Ordinance may request that the City treat such information as "confidential" or "highly sensitive confidential." The gas utility shall make a written request to the City or its designated representative that the information not be made routinely available for public inspection. Each request shall conta'm a statement of the reasons for withholding inspection and a statement of the facts upon which those reasons are based. The request for nondisclosure shall be treated and construed in accordance with applicable state and federal law, including the Texas Open Records Act, Ch. 552, Texas Government Code. The burden of showing eligibility for nondisclosure is on the gas utility. B. For those schedules that include information that the gas utility claims is confidential and proprietary, each page containing such information will be provided; however, information that is claimed to be confidential and proprietary may be presented in redacted form. C. Unless a protective agreement between the City and the gas utility controls the disclosure and use of proprietary, protected, or confidential gas utility information, the information required to be submitted by this Ordinance, whether claimed as "confidential" or "highly sensitive confidential" or other similar basis by the gas utility, must be provided in non-redacted form to the City or its designated representative under seal. Each page of this sealed filing containing "confidential" or "highly sensitive confidential" shall be clearly labeled as such. Two copies of confidential information will be provided to the City or its designated representative. One copy of "highly sensitive confidential" information will be provided to the City or its designated representative. No further copies of information provided under seal may be made by the City or its designated representative absent prior written approval of the gas utility submitting such information under seal. SECTION 13. Notice. The copy of this Ordinance shall be sent to each gas utility operating within the City. ~ Page 15 of 16 SECTION 14. Severability Clause. If any term, condition, or section of this Ordinance or the application thereof to any person or circumstance shall, to any extent, be held to be invalid, unenforceable, or unconstitutional, the remainder hereof and the application of such term, condition, or section to persons or circumstances other than those as to whom it shall be held to be invalid, unenforceable, or unconstitutional shall not be affected thereby, and this Ordinance and all the terms, conditions, and sections hereof shall, in all respects, continue to be effective and to be complied with. It is the intent of City in adopting this Ordinance that no portion or provision thereof shall become inoperative or fail by reason of any invalidity, unenforceability, or unconstitutionality of any other portion or provision, and to this end all provisions of this Ordinance are declared to be severable. .SECTION 15. Cumulative Requirements and Effective Date. This Ordinance is cumulative of all other requirements under state law and shall become effective immediately from and after its passage and approval. PASSED AND APPROVED this ~, ,2003. MA~K B~OOHS,)~ 9 TEM ATTEST: JENNIFER WALTERS, CITY SECRETARY APP~VED A~TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: ,, Page 16of16