HomeMy WebLinkAboutOrdinance - 2013-O0089 - Atmos WTX - 09/10/2013First Reading Second Reading
September 4, 2013 September 10, M
Item No. 2.1 Item No. 5.3
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ORDINANCE NO. 2013-00089
AN ORDINANCE OF THE CITY OF LUBBOCK, 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;
FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS
ORDINANCE WAS PASSED WAS IN ACCORDANCE WITH THE
REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; MAKING
OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, pursuant to the Gas Utility Regulatory Act § 103.001, the City is
granted exclusive original jurisdiction over a gas utility's rates, operations. and
services within the City to ensure the gas utility provides adequate and efficient
services at fair, just, and reasonable rates; and
WHEREAS, the Gas Utility Regulatory Act does identify specific schedules,
information, or other data that the City must examine in fulfilling its statutory duty as
a regulatory authority; and
WHEREAS, the Gas Utility Regulatory Act § 103.021 directs the City to
require the utility to submit information as necessary to make a reasonable
determination of the utility's rate base, expenses, investment, and rate of return in the
municipality; and
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WHEREAS, the 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 regulatory authority's rules and regulations; and
WHEREAS, the City finds that the use of a Rate Filing Package, with
associated schedules, testimony, narrative explanations, and work papers, as part of
the Statement of Intent to increase rates, would assist the City in exercising its
exclusive original jurisdiction to determine the gas utility's rate base, expenses,
investment, and rate of return in the municipality, and in ensuring that the gas utility
provides adequate and efficient services at fair, just, and reasonable rates; and
WHEREAS, the City finds that the provision of a Rate Filing Package would
reduce the amount of discovery otherwise necessary for the City to conduct a
reasonable investigation of the gas utility's Statement of Intent to increase rates
within the time frames specified in the Gas Utility Regulatory Act; and
WHEREAS, the City wishes to encourage gas utilities operating within the
city limits to present their Statement of Intent in full when initially filed with the City;
and
WHEREAS, the City finds that requiring gas utilities operating within the
City to include additional information as part of their Statement of Intent to increase
rates would promote the public interest;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF LUBBOCK, TEXAS, THAT:
Section 1. Minimum Filing Requirements for Gas Utility Statement of Intent to
Increase Rates.
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A. To initiate a proceeding to increase rates within the City and start the
statutory deadlines under § 104.107 of 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. With regard to increases in rates that are not
major rate changes as defined in Gas Utility Regulatory Act § 104.101,
the Statement of Intent shall be deemed sufficient as of the .date of
initial filing unless the City Attorney, within ten (10) days of the date
the Statement of Intent is filed, notifies the utility in writing of the
insufficiencies in the Statement of Intent. With regard to a major
change in rates as defined in Gas Utility Regulatory Act § 104.101, the
Statement of Intent shall be deemed sufficient as of the date of initial
filing unless the City Attorney, within 30 (30) days of the date the
Statement of Intent is filed, notifies the utility in writing of the
insufficiencies in the Statement of Intent.
B. Within seven (7) days after the utility receives the notice of
insufficiency, the gas utility may file an appeal to the City Council. If
the City Council has not issued a decision that the Statement of Intent
is insufficient within the 35 days after the gas utility files its appeal, or
if the City Council determines that the Statement of Intent is
substantially complete, then the Statement of Intent is deemed
sufficient as of the date of the 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 on the date the gas utility files with the City
Secretary, the amended Statement of Intent correcting the
insufficiencies consistent with the City Council's decision.
2. Statement of Intent regarding rate changes that are not major
A. In this Ordinance, "major change" in rates shall have the meaning set
forth in Gas Utility Regulatory Act § 104.101.
B. A Statement of Intent to change rates in a manner that does not
constitute a major change in rates shall include the following
information:
1. A complete set of all proposed revisions to the utility's
tariff(s); identifying each proposed change by
blacklinelstrikeout edits to the existing approved tariff(s).
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2. A statement specifying in detail the customer class or classes,
and the number of customers affected by the proposed change;
indicating average monthly bill impacts from all proposed rate
changes for a typical customer in each customer class.
3. The change in non -gas revenue, expressed both as a change in
dollar amounts and as a percentage of the utility's non -gas
revenue and on a customer -class basis and on a total basis, that
the utility expects the revised tariff(s) to furnish as compared to
its then current tariff(s);
4. All other information, if any, required by the Gas Utility
Regulatory Act; and
5. A sworn statement that the proposed change in rates, if
approved, will not effect a major change in rates.
C. The City or its City Attorney, 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
a major change in rates, if needed to assist the City in making its rate
determinations.
Section 3. Statement of Intent regarding a major change in rates.
If the gas utility is requesting a major change in rates, then the utility shall
include in its Statement of Intent all schedules and information specified in Section 3
of this Ordinance, as well as all additional information, if any, that may be required
by this Ordinance or the Gas Utility Regulatory Act.
PART I — General Instructions
A. System -wide Data: The gas utility shall provide all information in
support of its request for a major change in rates, including all
information required to be filed in the schedules set forth in this
Ordinance, on a system -wide basis. "System -wide" means all
incorporated and unincorporated areas served by the gas utility on an
integrated basis, including all utility -owned transmission and
distribution facilities and costs incurred to provide such integrated
service. "System -wide" data shall mean all expense, rate -base, billing
determinants and other capital -investment data upon which the gas
utility bases its total cost of service and its request to increase rates,
including any prudently incurred affiliate expenses and shared -services
expenses.
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B. City -specific Data: In addition to providing system -wide data, the
gas utility shall provide its schedules, workpapers, and all other
information that comprises its Statement of Intent, in such a manner
that readily identifies the gas utility's expenses, rate base, investments,
billing determinants and rate of return within the city limits, such as to
allow the City to make a reasonable determination of the utility's rate
base, expenses, investment, present and proposed revenues and rate of
return in the City.
1. To the extent the utility prefers not to identify the data required
in Section 3.13. on a city -specific basis, the utility may instead
identify the data on the basis of the rate -area jurisdictions upon
which the utility's rates were based, and as used by the gas
utility to determine rates, in the most rate filing the utility made
with the City prior to January 1, 2012.
2. To the extent the utility elects not to identify the data required
in Section 3.13. on a city -specific basis, the utility shall so state
in its Statement of Intent.
C. Number of Copies and Native Electronic Files: The gas utility shall
deliver three complete sets of its Statement of Intent and all related
schedules, workpapers related to and/or used in preparation of the
schedules, and other information required by this Ordinance, to the
City Secretary. In addition, at the same time the utility files its
Statement of Intent with the City, the utility shall also deliver to the
City, in electronic files in native format (for example, in MS Excel or
MS Word), its Statement of Intent and all related schedules,
workpapers, and other information required by this Ordinance. The
electronic files used to compute the amounts in the utility's filing shall
be provided in their original format including all formulae. All links
in any electronic file shall be intact and all formulae should function as
originally utilized by the utility in preparing the filing.
D. The gas utility shall ensure that all schedules shall be referenced by
schedule number and name as identified in this Ordinance and shall
identify the person(s), if any, most knowledgeable with regard to the
contents of each schedule. Any schedules that are not applicable to the
utility's request to increase rates, shall be so designated. All lines in
each schedule shall be numbered consecutively starting with the
number 1 on the first line of each page.
E. The gas utility shall ensure that all workpapers are clearly labeled
"Workpaper" and shall clearly indicate the schedule(s) to which the
workpaper applies (e.g., W'P A-2.1 would be the first page of the
workpapers applicable to Schedule A-2). Workpapers shall clearly
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identify all assumptions, calculations, source documents, and other
data supporting the amounts presented therein.
PART II — Rate Filing Package Schedules
Schedules: The utility shall provide the following schedules and sub -schedules in
accordance with Section 3, Part I.A. and Part I.B of this Ordinance and at the same
time the utility files its Statement of Intent. The utility's schedules and sub -
schedules, and other data provided to support the utility's cost of service, shall be
based on the most recent test year for which operating data are available. "Test year"
is defined as found in Gas Utility Regulatory Act § 101.003(16). The gas utility shall
utilize the Federal Energy Regulatory Commission's (FERC) Uniform System of
Accounts (USOA) prescribed for Natural Gas Companies subject to the Provisions of
the Natural Gas Act for all operating and reporting purposes.
Schedule A — Overall Cost of Service:
Schedule A: The gas utility shall provide a schedule presenting its cost of
service in accordance with Section 3 of this Ordinance, including its cost of
gas and any other costs recovered through any rate adjustment mechanisms.
The following amounts shall be shown in separate columns across the
schedule:
a) Historic test year per books, unadjusted;
b) Test -year ending adjustments;
c) Known and measurable changes;
d) Claimed revenue deficiency
e) Proposed revenue requirement
Schedule A-1: This schedule shall summarize the utility's present and
proposed operating revenue for the test -year used in the utility's Statement of
Intent, unadjusted, showing all proposed adjustments, and the utility's "as -
adjusted" amounts, and shall include a description of each item of other
revenues.
Schedule A-2: This schedule shall detail each revenue and expense
adjustment summarized in Schedule A and shall show the calculation of each
proposed adjustment to test -year, actual, per -book amounts. The proposed
adjustments shall be shown, with detailed supporting calculations and
supporting references and documentation, on a separate sub -schedule and
shall be designated "Schedule A-2.x." References to supporting workpapers
related to each sub -schedule shall be identified with reference to the sub -
schedule.
Schedule A-3: This schedule shall provide details regarding the utility's trial
balance for each month of the test year. The trial balance shall include all balance
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sheet and income statement accounts and sub -accounts maintained in the utility's
normal course of business, for each business division, affiliate and other business unit
that is relevant to the asserted revenue requirement. A copy of the utility's chart of
accounts containing detailed descriptions for each account and sub -account, shall be
included in the workpapers for this schedule.
Schedule A-4: The gas utility shall provide a schedule detailing test -year
unadjusted Operations and Maintenance Expenses and Administrative & General
Expenses by USOA account and sub -account by month. The expenses shall be shown
in columnar form, as follows, with subtotals for each functional classification:
a) Operation and maintenance expense by account and sub -account, as booked
for each month of the test year, and the annual total for each account and sub -
account.
b) Adjustments, if any, to the per books expense.
c) Total adjusted operation and maintenance expenses claimed.
Schedule A-4a: The gas utility shall provide a schedule detailing test year
unadjusted Operations and Maintenance Expenses and Administrative and General
Expense by USOA account and sub -account for each affiliate, division or other
business unit charging or allocating expenses that are included within the gas utility's
asserted cost of service. The expenses shall be shown in columnar form, as follows,
with subtotals for each functional classification:
a) Operation and maintenance expenses by account and sub -account, as booked
for each month of the test year, and the annual total for each account and sub -
account.
b) Allocation factor(c) applied to each account or business unit 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: Invested Capital & Return (System only unless otherwise stated)
Schedule B-l: This schedule shall be titled "Summary of Invested Capital" and in
this schedule the utility 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.
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Schedule B-2: In this schedule the gas utility shall provide data 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 item of invested capital. The schedules
shall be sequentially designated Schedule B-2-x.
Schedule B-3: In this schedule the gas utility shall provide data detailing all post-
test year adjustments to plant in service, if any. Reference shall be made to other
adjustments to the unadjusted cost of service that are proposed to be made to be
consistent with the post-test year adjustments shown on this schedule.
Schedule C: Original Cost of Plant in Service
Schedule C-1: In this schedule the gas utility shall provide data presenting the
original unadjusted cost of plant in service by USOA plant account as of the
end of the historic test year in the first column. The second column shall
indicate how amounts were allocated to serve as the basis for the utility's
proposed cost of service and increase in rates. 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.
Schedule C-2: In this schedule the gas utility shall provide data presenting the
original unadjusted cost of plant in service by USOA plant account by month
for the historic test year plus the last month of the previous twelve-month
period.
Schedule C-3: In this schedule the gas utility shall provide data detailing the
system's additions closed to Plant in Service for all periods since the end of
the test year in the gas utility's more recently completed general rate case and
for 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 and unadjusted balance.
e) Estimated completed cost.
f) Town/city to which the construction related.
Schedule D: Accumulated Depreciation
Schedule D-1: In this schedule the gas utility shall provide data presenting
accumulated depreciation by USOA account as of the end of the historic test
year, unadjusted. Each proposed adjustment to the historic test year amounts
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shall be shown in a separate column by USOA account with the "as adjusted"
amount shown in the final column.
Schedule D-2: In this schedule the gas utility shall provide data presenting the
calculation of depreciation expense for the unadjusted historic test year and
for the utility's adjusted test period. References shall be provided for each
depreciation accrual rate and amortization rate being employed, indicating the
regulatory authority for use of such accrual/amortization rates.
Schedule D-3: If the utility is proposing to change depreciation rates, the gas
utility shall provide all supporting analyses for the Depreciation Rate Study in
this schedule.
Schedule E: Detail of Other Rate Base Items
Schedule E-1: In this schedule the gas utility shall provide data 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
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: In this schedule the gas utility shall provide data presenting all
information pertaining to the sale of accounts receivable including the terms
of the contract, if applicable. 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: In this schedule the gas utility shall provide data presenting
monthly balances for Materials & Supplies and Prepayments. The balances
shall be presented by USOA 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: In this schedule the gas utility shall provide data presenting the
monthly balances for customer deposits, contributions in aid of construction
and customer construction advances. (The calculation of the amount of
customer deposits, contributions, and construction advances the utility
proposes to include in invested capital shall be included in the B-2 schedules.)
Schedule F: Capital Structure & Return
Schedule F-1: In this schedule the gas utility shall provide data summarizing
the utility's proposed weighted average cost of capital.
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Schedule F-2: In this schedule the gas utility shall provide data presenting 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: In this schedule the gas utility shall provide data 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.
Schedule F-4: In this schedule the gas utility shall provide data 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
short term and long term debt shall also be presented.
Schedule F-5: In this schedule 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 entity filing for the rate increase in not
required to separately file these forms, the utility shall provide the forms for
any parent or related business entity that is required to file them.
Schedule G: Accounting Information
Schedule G-1: In this schedule the gas utility shall provide data 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 month 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 (sum of columns b, c and d).
f) Column (f) -- total number of employees.
In this schedule the utility shall also 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. (e.g., 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: In this schedule the gas utility shall provide the following
payroll distribution information for the test year and each of the three years
prior, in amounts reconciled to the information in Schedule G-1, above:
a) Total Company payroll.
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b) Total Company payroll charged to expense.
c) Total Company payroll charged to capital accounts.
d) Total Company payroll charged to clearing accounts.
Schedule G-3: In this schedule the gas utility shall list and describe all
payments or consideration other than standard pay or standard overtime pay
(i.e. bonuses, severance pay, etc.) made to employees of the gas utility and
any related business units for which costs are included in the asserted overall
cost of service, during the three most recent calendar years prior to the test
year as well as for the months of the test year. Workpapers shall be provided
containing summary plan descriptions for each bonus, incentive, performance -
based and other variable compensation arrangement for which amounts are
provided. State whether the Company is requesting rate recovery of these
payments by program or plan, and where within the Company's filed
schedules such costs are included.
Schedule G-4: In this schedule 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 accruals and write-
offs.
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.
Schedule G-5: In this schedule 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.
c) Amount included in account 930.
d) Six representative advertisements, two from each category listed
above.
Schedule G-6: In this schedule the gas utility shall provide details of
contributions, donations and dues paid by month for the historic test year for
the total Company:
a)
Payee.
b)
Amount.
c)
Business Purpose.
d)
Account(s) charged.
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Schedule G-7: In this schedule the gas utility shall provide details of
legislative, lobbying, monitoring legislation and any other costs incurred to
influence or monitor legislation or to maintain relations with legislators during
the test year. Include date of payment, the payee, the purpose of the payment
and the account charged.
Schedule G-8: In this schedule the gas utility shall provide detail of
penalties, legal settlements and fines included in the test year. Include the
date, payee, amount, nature of the penalty/payment and the account(s)
charged.
Schedule G-9: In this schedule the gas utility shall present information on all
outside services employed during the test year that appear in the USOA 900
series accounts. This schedule shall include the following information:
a) Expenses amounts by category of service (e.g., engineering,
construction, accounting, legal, financial, actuarial, etc.) and by vendor
within the category.
b) Distribution of expenses in part (a) by USOA 900 series account
numbers.
c) Business purpose of each vendor's services.
Schedule G-10: In this schedule the gas utility shall provide detailed
information about amounts charged to Miscellaneous General Expenses,
USOA account 930.2, for the test year. The schedule shall include the
following information: 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/goods received.
Schedule G-11: In this schedule the gas utility shall provide a schedule
detailing the various expenses charged to USOA account 928 during the test
year, the proposed adjustments to test -year amounts, and the amount requested
for each item.
Schedule G-12: In this schedule the gas utility shall provide data detailing
lost and unaccounted for gas for the test year and for each of the three
calendar years prior to the beginning of the test year.
Schedule H: Federal Income Taxes
Schedule H-1 In this schedule the gas utility shall provide data showing
the test year recorded current and deferred FIT by sub -account and the
requested FIT. 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.
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Schedule H-2 In this schedule the gas utility shall provide data that
includes a reconciliation detailing all permanent and temporary timing
differences and other items that required deferred income tax accounting for
the test year. 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.
Schedule H-3 In this schedule the gas utility shall provide test -year-end
book balances, requested adjustments to those balances, and the resulting
adjusted balances for accumulated income tax deferrals for each book/tax
timing difference. 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 that gives rise to the tax deferrals shall be segregated. Allocations, if any,
of these amounts shall be shown and supported by calculations and source
documentation in the work papers.
Schedule H-4 In this schedule the gas utility shall provide data 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.
Schedule I: Taxes Other than Income Taxes
Schedule I-1 In this schedule the gas utility shall provide data presenting
details of expenses included in USOA 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.
Schedule I-2 In this schedule and subsequently numbered schedules the
gas utility shall provide data showing the calculation of the utility's proposed
adjustments to test -year levels for each tax. For example, Schedule I-2 might
show the detailed calculation of a proposed adjustment to the test -year cost for
property taxes while subsequent schedules would show similar detail for each
of the other taxes shown on Schedule I-1.
Schedule I-3 In this schedule the gas utility shall provide data showing
the ad valorem tax expense 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 Company as of January 1 of each of the four calendar years
immediately prior to the test year.
Schedule J: Affiliate Data
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Schedule J-1 In this schedule the gas utility shall list all affiliates and/or
other divisions or related business entities of the utility with which the utility
had transactions during the test year. The schedule shall include a description
of each such entity, listing and describing each category of goods and service
provided.
Schedule J-2 In this schedule the gas utility shall provide the most recent
entity organizational chart for the utility system showing both regulated and
non -regulated affiliates, divisions, and/or other entity 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 each affiliate,
division, and/or related entity.
Schedule J-3 In this schedule the gas utility shall provide data showing
the test year -charges to or from the utility and each affiliate, division, and/or
related entity by USOA account grouped and subtotaled by class of items.
Schedule J-4 In this schedule the gas utility shall provide data showing
affiliate, division, and/or related entity expenses listed by affiliate, division, or
entity, and by USOA account on a per book basis. The schedule shall include
specific pro -forms adjustments and expenses shall be presented in the
schedule on an adjusted basis for the test year.
Schedule J-5 In this schedule the gas utility shall provide data showing
any affiliate, division, and/or related entity charges included in capital
additions during the test year and each year since the utility's last rate
increase.
Schedule J-6 In this schedule the gas utility shall provide data detailing
the adjustments to test year unadjusted affiliate/division/related entity
transactions including the description, purpose, and amount of each
adjustment. This schedule must correlate to Schedule J-4.
Schedule J-7 In this schedule the gas utility shall provide data detailing,
for each affiliate, division, and/or related entity with which the gas utility had
transactions during the test year, each affiliate's, division's, and/or related
entity's allocation of charges to others including the gas utility. If the gas
utility had transactions with any such entity during the test year, then the
schedule shall provide details of all costs allocated to related companies by all
such affiliates during the test year and explain in detail the basis for each
allocation.
Schedule J-8 In this schedule 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.
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Schedule K: Cost of Service Analysis
Schedule K-1 In this schedule 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 in Excel worksheets.
Schedule K-2 In this schedule the gas utility shall provide details of
recorded and adjusted billing determinants and revenues for the 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: Rate design Information:
Schedule L-1 In this schedule the gas utility shall provide data showing
the following recorded information for each customer class:
a) The designation of the class.
b) The total number of customers of the class, on a monthly basis for the
36 months ending at test year-end.
c) The total consumption in MCF of the customer class, on a monthly
basis for the 36 months ending at test year-end.
d) The total revenues derived from customers of the class, on a monthly
basis for the 36 months ending at test year-end..
e) Customer charge revenues, commodity revenues and base rate
revenues shall be separately stated and broken out in the schedule.
f) A comparison of proposed adjusted customer and consumption levels
for each customer class, describing each adjustment made, with
supporting calculation and supporting workpapers for each such
adjustment.
Schedule L-2 In this schedule the gas utility shall provide data 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 In this schedule the gas utility shall provide data showing
the utility's current and proposed rates of return by customer class under the
allocation methods proposed by the utility. 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
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constitutes a "major change," then the gas utility must provide the
following additional information as part of its Statement of Intent:
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 amount) 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 Statement of
Intent as part of 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 test year as well as provide the reasons for
and explanation of the requested increase. The utility shall
submit two (3) copies of the testimony and reports, if any, of
Company representatives and outside expert witnesses used to
support such filing.
4. The names of all other cities in which the gas utility will be
making a similar filing.
5. Copies of any press releases relative to the filing issued by the
Company prior to or at the time of filing.
6. All other information, if any, required by the Gas Utility
Regulatory Act.
B. In connection with each Statement of Intent for a "major change" in
rates, the gas utility shall make available for review any or all of the
following information to the City Attorney's office for 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 utility'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.
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Voluminous information and documents shall be made available for review 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 location.
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 City Attorney.
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 city attorney 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.
For the convenience of the gas utility 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 City Attorney 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 Statement of Intent and associated rate filing package and
supplement or addendum thereto shall be supported by 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 or assist with litigation in rate
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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 of the City, 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 City Attorney, within such time limits as he or she reasonably
prescribes, 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 City Attorney
may waive, in writing, the filing of a 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 City Attorney may
grant a request for waiver only after the utility has shown that the City's
ability to make a rate determination would not be frustrated by exclusion of
such information and that the City has reasonable alternatives to the
information that is the subject of the waiver request. Denial of a waiver
request renders that filing insufficient. Applications found insufficient shall
be abated to allow the utility to correct its defect within a reasonable period,
such period not to exceed 30 days.
Section 11. Non -waiver of Jurisdiction.
Nothing contained in this Ordinance shall be construed as a waiver or
surrender of the City's jurisdiction over the regulation of the rates, services, or
operations provided by any utility. The City reserves the right to adopt
modifications to the requirements adopted in this Ordinance.
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 City Attorney that the information not be made routinely available for
public inspection. Each request shall contain a statement of the reasons for
withholding inspection and a statement of the facts and laws 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 under seal; however, schedules and other documents
containing 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
information, the information required to be submitted by this Ordinance,
whether claimed as "confidential: or "highly sensitive confidential" or other
similar basis, the gas utility, must provide such information in non -redacted
form to the City or its City Attorney under seal. Each page of this sealed
filing containing "confidential" or "highly sensitive confidential" information
shall be clearly labeled as such. Two copies of the confidential information
will be provided to the City or its City Attorney. One copy of "highly
sensitive confidential" information will be provided to the City or its City
Attorney. No further copies of information provided under seal may be made
by the City or its City Attorney absent prior written approval of the gas utility
submitting such information under seal, unless and to the extent the Attorney
General or another authority with jurisdiction finds that the information does
not fall within an exception to the Texas Public Information Act.
Section 13. Notices
The copy of this Ordinance shall be sent to each gas utility operating
within the City.
Section 14. Savings 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
19
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 provision of this Ordinance are
declared to be severable.
Section 15. Passed at Open Meeting
That the meeting at which this Ordinance was passed was conducted in
strict compliance with the Texas Open Meeting Act (Texas Government Code
Chapter 551).
Section 16. Cumulative Requirements and Effective Date.
This Ordinance is cumulative of all other requirements under state law
and shall become effective upon passage and publication as required by state
law.
Passed by the City Council on first reading the 4th day of September , 2013
Passed by the City Council on second reading the 10th day of September , 2013
ATTEST:
Reb cca %Tarza, City Secretar
APPROVED AS TO CONTENT:
Alfre Herrera, Herrera & Boyle, PLLC
APPROVED
Sam Medina, City A
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September 3, 2013
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Gle . obertson, Mayor
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