Ordinance 1999-35
ORDINANCE NO. gqr~
AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, FINDING
AFTER REASONABLE NOTICE AND HEARING, THAT TXULONE
STAR GAS RATES AND CHARGES WITHIN THE CITY SHOULD BE
CHANGED; DETERMINING JUST AND REASONABLE RATES,
ADOPTING WEATHER NORMALIZATION ADJUSTMENT;
REJECTING PLANT INVESTMENT AND COST OF SERVICE
AUTOMATIC ADJUSTMENT CLAUSES; APPROVING AN
ADJUSTMENT FACTOR FOR FRANCHISE FEES AND STATE
OCCUPATION TAX; PROVIDING FOR RECOVERY OF RATE CASE
EXPENSES; ADOPTING A MOST FAVORED NATIONS CLAUSE;
PRESERVING REGULATORY RIGHTS OF THE CITY; ORDERING
THAT THIS ORDINANCE BE SERVED ON TXU LONE STAR GAS;
PROVIDING FOR REPEAL OF CONFLICTING CLAUSES AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Wylie ("City"), acting as a regulatory authority, has previously
suspended the effective date ofTXU Lone Star Gas' ("Lone Star") application to adjust rates
in the City in order to study the reasonableness of that application, and
WHEREAS, the City, on November 9, 1999, considered the Company's application and a
report from the City's consultants who were retained to evaluate the merits of Lone Star's
application in a reasonably noticed public hearing, and
WHEREAS, the City has determined that the Company's rates within the city should be
changed and that the Company's application should be granted, in part, and denied, in part,
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Wylie,
Texas, as follows:
Section 1. That the existing rates and charges of Lone Star are hereby found, after
reasonable notice and hearing, to be unreasonable, and shall be changed as hereinafter
ordered. The changed rates resulting from this Ordinance are hereby determined to be just
and reasonable rates to be observed and in force within the City.
Section 2. That it is hereby ordered that Lone Star's rates in the City be set on the basis of
a 3.07% increase in overall system average revenues with a 2.66% increase in system
average residential revenues and a 4.82% increase in system average commercial revenues
on the Northeast Metro Distribution System. The increase in overall system average
revenues also includes a $46,177 decrease in other revenue (associated with service charges)
over test year levels. Revenues ofthe City of Wylie are authorized to change from test year
levels, exclusive of changes in service charges in the following manner: decrease $2,399 for
residential customers and increase $20,928 for commercial customers.
Section 3. The residential and commercial rates resulting form this Ordinance shall be
adjusted upward or downward from a base per Mcf city gate rate set by the Railroad
Commission of Texas by a Gas Cost Adjustment Factor or comparable mechanism
authorized by the Railroad Commission of Texas. The city gate rate shall be adjusted by a
volume factor of 1.0177 to recognize lost and unaccounted gas on the Northeast Metro
Distribution System.
Section 4. The Weather Normalization Clause proposed by Lone Star is adopted. The Plant
Investment and Cost of Service automatic adjustment clauses proposed by Lone Star are
unreasonable and are specifically rejected. Lone Star is authorized to adjust monthly bills
to include any municipal franchise fee, street and alley assessment or state occupational tax
now or hereafter in effect in this City.
Section 5. Residential and commercial monthly customer charges of $7.00 and $12.00,
respectively, are reasonable and are approved.
Section 6. The miscellaneous service charges and line extension charges reflected in Exhibit
A are reasonable and are hereby approved.
.
Section 7. Approval of most favored nations clause is reasonable and in the public interest
and Lone Star is ordered to provide commercial and residential residents ofthe Ctiy of Wylie
the benefits of any agreement or order applicable elsewhere in the Northeast Metro
Distribution System.
Section 8. Lone Star shall file with the City, no later than the effective date of the changed
rates ordred herein, revised Tariffs and Schedules, together with rate design workpapers and
supporting data as requested, setting forth the rates, tariffs and changes based upon the
increases and changes prescribed herein. Such Tariffs and Schedules may be modified or
amended by the City Council to comply with the provisions of this Ordinance within twenty
(20) days from the date of filing with the City, otherwise the same shall be considered
approved as filed.
Section 9. The fees and expenses associated with the City retaining counsel and consultants
to investigate the Company's application are reasonable and are to be paid by Lone Star and
recovered from ratepayers through a system-wide surcharge spread over a six month period.
The Company shall provide a monthly accounting to the City showing, by months, the
amount recovered through the surcharge.
Section 10. The rate changes ordered herin become effective for billing on November 16,
1999.
Section 11. This ordinance shall be served on Lone Star by U.S. mail to the Company's
authorized representative, Greg Huckaby.
Section 12. Nothing contained in this Ordinance shall be construed now or hereafter in
limiting or modifying, in any manner, the right and power ofthe City under law to regulate
the rates and changes of Lone Star.
Section 13. All ordinance, resolutions, or parts thereof, in conflict with this Ordinance are
repealed to the extent of such conflict.
Section 14. It is hereby found and determined that said 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 said meeting was given.
DULY PASSED AND APPROVED by the City Council of the City of Wylie, Texas, this 9th day
of November, 1999.
John Mondy, Mayor
ATTEST:
.......~,>'
r;~' ~I~,
\."\." ,--..-.~---..;*
, "./
.~ ,F
...~" "c/: C .<:/'
"#'.;~..", tJr'j "",~~~" '~'>.. :>,,~;..
#_';~~~:.1' ,'/ IE '1 ~ i" ~:..~\.."
~~,,~::' :','t:;~'2.' ,.];; i i\W~\\~:~:~ 10
LONESTAR.ORD
Exhibit A
LONE STAR GAS COMPANY
NORTHEAST METRO DISTRIBUTION SYSTEM
SCHEDULE OF SERVICE CHARGES
A. Connection Charge
In addition to the charges and rates set out above, the Company shall charge and collect the
sum of
Schedule
Business Hours
After Hours
Charge
$35.00
$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.
B. 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.
C. Returned Check Charges
A returned check handling charge of $16.25 is made for each check returned to the Company
for any reason.
D. 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 wh~n gas service has
been temporarily interrupted because of system outage or service work done by Company.
MAINLINE 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 extension.
THE WYLIE NEWS
Covering Wylie, Sachse, Murphy and the surrounding area
110 N. Ballard St.
P.O. Box 369
Wylie, Texas 75098
(972) 442-5515
Fax (972) 442-4318
STATE OF TEXAS
COUNTY OF COLLIN
Before me, the undersigned authority, on this day personally appeared Chad Engbrock, of THE WYLIE
NEWS, a newspaper regularly published in Collin County, Texas and having general circulation in Collin
County, Texas, who being by me duly sworn deposed and says that the foregoing attached
City 06 Wytie - O~d. 99-35
was published in said newspaper on the following dates, to-wit:
Jan. 5
, 2000, and
,2000.
0JfJ2-
Chad Engbrock
Subscribed and sworn to before me this the / 8
to certify which witness my hand and seal of office'.
day of
, 2000,
,\"I.M:.!~.
~~~'~"'f/;-
i. ,;.
0.' : E
...... .'I1~
-..';rJit.....~\f....,f
"I,uWt,.\'
AMY C. LEWIS
MY COMMISSION EXPIRES
September 26. 2001
Notary ublic in and for
The State of Texas
My Commission Expires q -7>> -ZtJo /
ORDINANCE NO. 99-35
AN ORDINANCE OF THE CITY
OF WYLIE. TEXJ\.S. FINDING
AFTER REASONABLE NOTICE
AND HEARING. THAT TXU
LONE STAR GAS RATES AND
CHARGES WITHIN THE CITY
SHOULD BE CHANGED:
DETERMINING JUST AND REA-
SONABLE RATES ADOPTING
WEATHER NORMALIZATION
ADJUSTMENT: REJECTING
PLANT INVESTMENT AND
COST OF SERVICE AUTOMAT-
IC ADJUSTMENT CLAUSES:
APPROVING AN ADJUSTMENT
FACTOR FOR FRANCHISE
FEES AND STATE OCCUPA-
TION TAX; PROVIDING FOR
RECOVERY OF RATE CASE
EXPENSES; ADOPTING A
MOST FAVORED NATIONS
CLAUSE; PRESERVING REGU-
LATORY RIGHTS OF THE
CITY; ORDERING THAT THIS
ORDINANCE BE SERVED ON
TXU LONE STAR GAS; PRO-
VIDING FOR REPEAL OF CON-
FLICTING CL\USES AND PRO-
V!DINCI FOR ,<'\N EFFECTIVE
DATE.
ATTEST: John Mondy, Mayor
32-1 t-339