Ordinance 2000-27
ORDINANCE NO. 2(;00-:27
AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, FINDING,
AFTER REASONABLE NOTICE AND HEARING, THAT TXU GAS
DISTRIBUTION'S RATES AND CHARGES WITHIN THE CITY
SHOULD BE CHANGED; DETERMINING JUST AND
REASONABLE RATES; ADOPTING WEATHER
NORMALIZATION ADJUSTMENT; REJECTING PLANT
INVESTMENT CLAUSE; APPROVING AN ADJUSTMENT
FACTOR FOR CERTAIN FEES AND TAXES; PROVIDING FOR
RECOVERY OF RATE CASE EXPENSES; PRESERVING
REGULATORY RIGHTS OF THE CITY; ORDERING THAT THE
COMPANY FILE TARIFFS REFLECTING APPROVED CHANGES
IN RATES AND CHARGES; PROVIDING FOR REPEAL OF
CONFLICTING ORDINANCES
WHEREAS, the City of Wylie ("City"), acting as a regulatory authority, has previously
suspended the effective date of TXU Gas Distribution's ("Company") application to
increase rates in the City in order to study the reasonableness of that application;
WHEREAS, the City of Wylie, in a reasonably noticed public hearing considered the
Company's application, a report from the City's consultants who were retained to
evaluate the merits of the Company's application and a settlement agreement negotiated
with TXU Gas Distribution by a Steering Committee of Cities on the Northeast Metro
Distribution System;
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:
SECTION 1. That the existing rates and charges of TXU Gas Distribution 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 the Company's rates in the City be set on the
basis of a $4,749,743 increase in overall system average revenues. That revenue
deficiency shall be allocated in the following manner: a $3,062,760 increase in system
average residential revenues, a $903,735 increase in system average commercial revenues
and a $783,248 increase in system average industrial and transportation revenues on the
Northeast Metro Distribution System. The increase in overall system average revenues
also includes a $432 increase in other revenue (associated with service charges) over test
year levels. Pursuant to Texas Utilities Code Section 103.001 the City establishes rates
and charges consistent with these allocations. To the extent that industrial and
transportation customers have competitive options, the rates established by this ordinance
constitute "not to exceed" rates in recognition of the right of such customers to negotiate
reasonable rates.
SECTION 3. The residential, commercial and industrial rates resulting from 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. Industrial rates shall be
adjusted in accordance with contractual terms or tariffs as may be appropriate. 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 the Company is adopted.
The Plant Investment adjustment clause proposed by Lone Star is unreasonable and is
specifically rejected. The Company is authorized to adjust monthly bills to reflect
changes in municipal franchise fees, street and alley assessment and state gross receipts
taxes imposed by Sections 182.025, 182.024 of the Texas Tax Code occurring after the
effective date of this ordinance.
SECTION 5. Existing monthly customer charges, miscellaneous service charges and
line extension charges as reflected in Exhibit A are reasonable and shall be continued.
SECTION 6. School districts will continue to be billed in the rate classification they
were in during the test year.
SECTION 7. TXU Gas shall file with the City, no later than the effective date of the
changed rates ordered herein, revised Tariffs and Schedules, together with rate design
workpapers and supporting data as requested, setting forth the rates, tariffs and charges
based upon the increases and charges 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 the filing with the City, otherwise the
same shall be considered approved as filed.
SECTION 8. 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
TXU Gas 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 9. The rate charges ordered herein become effective for billing on December
9,2000.
SECTION 10. This Ordinance shall be served on Lone Star by U.S. Mail to the
Company's authorized representative, Autrey Warren, Regulatory Financial Manager,
TXU Business Serviees, 1601 Bryan Street, Dallas, Texas 75201-3411.
SECTION 11. Nothing contained in this Ordinance shall be construed now or hereafter
in limiting or modifying, in any manner, the right and power of the City under law to
regulate the rates and changes ofTXU Gas.
SECTION 12. All ordinances, resolutions, or parts thereof, III conflict with this
Ordinance are repealed to the extent of such conflict.
SECTION 13. 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, on this the lih day
of December, 2000.
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ATTEST
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