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Ordinance 1979-25 ORDINANCE NO. 79- 25 AN ORDINANCE FIXING AND DETERMINING THE GENERAL SERVICE RATE TO BE CHARGED FOR SALES OF NATURAL GAS TO RESIDENTIAL AND COMMERCIAL CONSUMERS IN THE CITY OF WYLIE, COLLIN COUNTY, TEXAS; PROVIDING FOR THE MANNER IN WHICH SUCH RATE MAY BE CHANGED, ADJUSTED, AND AMENDED; AND PROVIDING FOR A SCHEDULE OF SERVICE CHARGES. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1. Effective with gas bills rendered on and after thirty (30) days from the final date of passage of this ordinance, the maximum general service rate for sales of natural gas rendered to residential and commercial consumers within the city limits of Wylie, Texas, by Lone Star Gas Company, a division of ENSERCH CORPORATION, a Texas Corporation, its successors and assigns, is hereby fixed and determined as set forth in Item A, in the Attachment hereto which is incorporated herein. SECTION 2. The residential and commercial rates set forth above shall be adjusted upward or downward from a base of $1.9238 per Mcf by a Gas Cost Adjustment Factor expressed as an amount per thousand cubic feet (Mcf) of natural gas for changes in the intracompany city gate rate charge as authorized by the Railroad Commission of Texas or other regulatory body having jurisdiction for gas delivered to the Wylie distribution system, according to Item B, in the Attachment hereto which is incorporated herein. SECTION 3. Company shall also receive tax adjustments according to Item C, in the Attachment hereto which is incorporated herein. SECTION 4. In addition to the aforesaid rates, Company shall have the right to collect such reasonable charges as are necessary to conduct its business and to carry out its reasonable rules and regulations in effect, as set forth in Item D, in the Attachment hereto which is incorporated herein. SECTION 5. The rates set forth in this ordinance may be changed and amended by either the City or Company in the manner provided by law. Service hereunder is subject to the orders of regulatory bodies having jurisdiction, and to the Company's Rules and Regulations currently on file in the Company's office. SECTION 6. It is hereby found and determined that the 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 pur- pose of said meeting was given. PASSED AND APPROVED on this the 13th day of November A.D. 1979. ATTEST: ~t:2L:;/ Mayor City of Wylie, Texas STATE OF TEXAS 1 1 COUNTY OF COLLIN 1 I, Sarah Connelly , Secretary of the City of Wylie, Collin County, Texas, hereby certify that the above and fore- going is a true and correct copy of an ordinance passed and approved by the Ci ty Council of the City of Wylie at a regular session held on the 13th day of November , 1979, as it appears of record in the Minutes of said Ci ty in Book I I , Page WITNESS MY HAND AND SEAL OF SAID CITY, this the 15th day of November , A.D. 1979. (a) For a builder who uses gas temporarily during construction or for display purposes. (b) For the first occupant of the premises. (c) Whenever gas service has been temporarily interrupted because of system outage, service work or appliance installation done by Company; or (d) For any reason deemed necessary for Company operations. (2) Appliance, Gas Light, and Air Conditioning Service Charges Appliance Service Charges Schedule Hourly Charge 8 A.M. to 5 P.M. Monday through Friday 5 P.M. to 8 A.M. Monday through Friday Saturdays, Sundays and Holidays $ 18.00 27.00 27.00 An additional charge of $12 added to the above charges when a second employee (helper) is required. Time in excess of one hour prorated in 15 minute increments, as follows: Increments Standard Working Hours Non-Standard Working Hours 15 minutes 30 minutes 45 minutes 60 minutes $ 4.50 9.00 13.50 18.00 $ 6.75 13.50 20.25 27.00 Standard working hours defined as 8 A.M. to 5 P.M. Monday through Friday except holidays. All new company sold grills serviced free of charge for 90 days, during standard working hours. Gas Light Service Service Charge Clean and replace mantles $ 5.00 Painting (black and white) and/or replacing glass panes 4.00 All new company sold gas lights serviced free of charge for 90 days, during standard working hours. Air Conditioning Service Schedule Any hour Sunday through Saturday and Holidays $ Hourly Charge 20.00 Time in excess of one hour prorated in 15 minute increments, as follows: Increments All Hours 15 minutes 30 minutes 45 minutes 60 minutes $ 5.00 10.00 15.00 20.00 All new company-sold air conditioning units serviced free of charge for 1 year from date of installation. No additional charge for second employee (helper). Labor charges in excess of factory allowances for warranty replacement and repair will be passed on to the customer. (3) Charges for replacing Yard Lines Item or Service Basic service charge for all replacement work- Prebent Riser with Support Post Noncorrodible Prebent Riser Stopcock Ditch, replace l~ inch (or smaller) pipe, and obtain city inspection Remove grass, ditch, replace l~ inch (or smaller) pipe, obtain city inspection and replace grass Insert l~ (or smaller) Polyethylene pipe in existing service line Special trip to perform yard line work at customer's request and work cannot be scheduled for Company convenience Work performed on overtime basis at customer's request Disconnecting or reconnecting customer yard line at main when yard line is replaced by other contractors Charge $ 40.00 20.00 15.00 4.95 2.00 per foot 2.30 per foot 1. 90 per foot 40.00 additional 60.00 per hour 1/ 40.00 A firm price quotation will be made on the basis of labor, material, and other costs for replacing yard lines larger than l~ inch in size. 1/ Computed at one-fourth the hourly rate for each 15 minute period or fraction thereof. The same work performed on a call-out basis will be charged at the overtime rate with a two hour minimum charge. (4) Main Line Extension Rate (Residential) The charge for extending mains beyond the free limit established by Lone Star Gas, or any free limit established by city franchise is $4.50 per foot except for large commercial and industrial consumers which are handled on an actual cost per foot basis. (5) Returned Check Charges A returned check handling charge of $5 is made for each check re- turned to the Company for reasons of non-sufficient funds, account closed, payment withheld, invalid signature, or improper preparation. 6 ,\., ". c 'I'" /' / / :) Ie' Lone Star Gas Company M. W. SCHWEIKHARD Manager p, 0, Box 30B. Plana, Texas 75074 June 25, 1979 Honorable Mayor Akin and City Council City of Wylie Wylie, Texas 75098 Mayor Akin and Council Members: As you are aware, Lone Star Gas Company continues to operate in a highly competi- tive environment as we attempt to acquire, and to make available, adequate natural gas supplies for our customers. While the cost of gas has continued to rise, the accompanying costs of doing business have also escalated. Lone Star's average cost of gas continues to be one of the lowest average costs among intrastate gas purchasers in Texas; Lone Star also has one of the lowest average operating costs per customer. Even so, the increasing cost of gas and the rising costs of operation continue to have a detrimental effect upon the earnings of Lone Star Gas Company in the City of Wylie. As a result of these two factors the rate of return on the adjusted value of our investment here in Wylie for the twelve months ended Septem- ber 30, 1978 was .97%. Any public utility must earn an adequate rate of return upon its investment if it is to maintain its ability to serve its customers. I am requesting, therefore, your favorable consideration of the attached rate schedule which is proposed to go into effect on July 31, 1979. When implemented, this rate schedule will produce a 10.21% return on the adjusted value of our investment in Wylie. Accompanying this letter are several attachments which include a formal statement of intent to change rates, a motion for interim rate relief, a series of exhibits which will serve to substantiate our request, a rate ordinance and a proposed bond form. As you are aware, Section 43(e) of the Texas Public Utility Regulatory Act provides for the implementation of rates, under bond, should the city's review process re- quire longer than 90 days from the effective date specified in the Statement of Intent. Therefore, it is requested that, at your earliest convenience, you approve the form of the bond, the amount and the surety in order that Lone Star Gas Company and the City of Wylie may be in compliance with the law. As your local manager for Lone Star Gas Company, let me assure you that I stand ready to assist in every possible way as you go about the task of evaluating this proposal. If any additional information is desired, please honor me with your request. Respectfully, ._~ 1i~\.~Q~,","o-'(~ Mike Schweikhard Attachments (1) Statement of Intent to Change Rates (2) Motion for Interim Rate Relief (3) Exhibits 1-8 (4) Rate Ordinance (5) Bond Form (2) Correction of the estimated adjustment determined by Item B (1) above shall be included as part of the adjustment for the second following billing month. The correcting factor (shown below as "C") shall be expressed to the nearest $0.0001 per Mcf based upon: (a) The corrected adjustment amount based upon the actual city gate rate, less (b) The estimated adjustment amount billed under Item B (1) above, divided by (c) Distribution system residential and commercial sales Mcf recorded on the Company's books during the prior year for the month that the correction is included as part of the adjustment. (3) The adjustment determined by Item B (1) and Item B (2) above shall be multiplied by a tax factor of 1.04193 to include street and alley rental and state occupation tax due to increasing Company revenues under this gas cost adjustment provision. In summary, the gas cost adjustment (GCA) shall be determined to the nearest $0.0001 per Mcf by Item B (1) Item B (2) and Item B (3) as follows: GCA = [Item B (1) + Item B (2)] X Item B (3) GCA [(1.0670) (Re - $1.9238) + C) X 1.04193 Item C. Tax Adjustment The tax adjustment shall be an amount equivalent to the proportionate part of any new tax, or increased tax, or any other governmental impo- sition, rental, fee or charge (except state, county, city and special district ad valorem taxes and taxes on net income) levied, assessed or imposed subsequent to October 1, 1978, upon or allocable to the Company's distribution operations, by any new or amended law, ordinance or contract. Item D. Schedule of Service Charges (1) Reconnect Charge In addition to the charges and rates set out above, the Company shall charge and collect the sum of; Schedule Charge 8 A.M. to 5 P.M. Monday through Friday 5 P.M. to 8 A.M. Monday through Friday Saturdays, Sundays and Holidays $ 20.00 30.00 30.00 as a reconnect charge for each reconnection or reinauguration of gas service, where service has been discontinued at the same premises for any reason, with the following exceptions. ATTACHMENT TO ORDINANCE NO. 79-25 CITY OF WYLIE, TEXAS LONE STAR GAS COMPANY TARIFFS & SCHEDULES Item A. The following rates are the maximum applicable to residential and commercial consumers per meter per month or for any part of a month for which gas service is available at the same location. Summer rates shall be applicable between the meter reading dates in May and October. Winter rates shall be applicable at all other times. Residential: Customer Charge All Consumption @ Winter $3.0000 2.4834 Per Met Summer $3.0000 2.2334 Per Met If the service period is less than 28 days, the customer charge is $.1071 times the number of days service. Commercial: Customer Charge All Consumption @ Winter $6.0000 2.4834 Per Met Summer $6.0000 2.2334 Per Met If the service period is less than 28 days, the customer charge is $.2143 times the number of days service. Bills are due and payable when rendered and must be paid within ten days from monthly billing date. Item B. Gas Cost Adjustment Each monthly bill at the above rates shall be adjusted for gas cost as follows: (1) The city gate rate increase or decrease applicable to current billing month residential and commercial sales shall be esti- mated to the nearest $0.0001 per Mcf based upon: (a) A volume factor of 1.0670 determined for the distribution system as the ratio of Mcf purchased divided by the Mcf sold for the 12 month period ended June 30, 1978. (b) The city gate rate estimated to be applicable to volumes purchased during the current calendar month, expressed to the nearest $0.0001 per Mcf (shown below as "Re"). (c) The base city gate rate of $1.9238 per Mcf.