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Home My WebLink AboutResolution - 4669 - Rate Request Settlement -WTSC - Energas 1994 Gas Rate Change - 11_17_1994Resolution No. 4669 November 17, 1994 Item #25 RESOLUTION WHEREAS, the City Council of the City of Lubbock deems it to be in best interest of the citizens of the City of Lubbock to participate in the West Texas Steering Committee Settlement recommendation with regard to amending the Energas Company's September 20, 1994, Statement of Intent to Change gas rates in Lubbock; and WHEREAS, Energas Company has filed a Supplemental Rate of November 1, 1994, in settlement with the City of Lubbock and sixty five other West Texas communities, which rate will become effective November 18, 1994; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Manager or his designated representative is hereby authorized and directed to notify Energas Company that the City of Lubbock has found the Settlement Recommendation negotiated between the City's Steering Committee and Energas Company to be acceptable and the Energas Supplement of November 1, 1994, to its September 20, 1994, Statement of Intent is hereby accepted for implementation as of November 18, 1994. A copy of the said Energas Supplement of November 1, 1994, is attached hereto and made a part hereof for all intents and purposes. Passed by the City Council this ATTEST: bettyok Johnso City Secretary APPROVED AS TO CONTENT: th day of _V N Massengale, Assistant Cig Manager APPROVED AS TO G. Vandiver, Assistant City Attorney DGWccdocs/psrate.res November 9, 1994 er DAVID R. LANGSTON, 1994. Energas Company P.O. Box 650205 Dallas, Texas 75265-0205 214-788-3719 November 4, 1994 ENERCAISo LED Re: 1994 To the Honorable Mayor and City Council: Resolution No. 4669 \L j.-:. ., November 17, 1994 ;"\Item #25 `✓ 1 ��,� �. Lee Allen Everett 1 Director 9�RRE: A, ; a Regulatory Affairs quest Settlement After extensive discussions with the West Texas Steering Committee and its Rate Consultant, Energas Company has agreed to the following terms to promptly settle its 890 per month per customer rate request filed with your City on September 20, 1994. I. Customer Monthly Charge Increase II. Filing Moratorium` III. Service Charges IV. Effective Date V. Rate Case Expenses Company Request Settlement Terms 890/customer 540/customer None The filing date of next general rate case shall be no earlier than April 1, 1996 Increased to Cost As proposed by of Service levels Company November 18, 1994 November 18, 1994 Recoverable from Company will reimburse Ratepayers the Steering Committee up to $15,000 for its consultant's expenses and will not surcharge either the Committee's or Company's rate case expenses. "The filing moratorium precludes general rate changes that would other wise occur due to increased investment, and the continuation of historical levels of inflation including increases in salaries and other operation and maintenance expenses. In other words, rate requests related to increases in costs somewhat within the Company's control or in the due course of business. The moratorium does not preclude filings caused by material, adverse governmental action (such as significant tax increases, health care reform, etc.) or natural disasters or other external, adverse events beyond the reasonable control of the Company which without reasonable relief would result in confiscatory rates. This settlement is being offered to your City and the other sixty five communities served by Energas Company in its West Texas service area. Accompanying this letter is a Supplement to Energas Company's September 20, 1994 Statement of Intent to change gas rates. The Supplement is a settlement offer which amends the original Energas 89¢/month request down to the 54¢/month agreement with the Steering Committee conditioned upon no suspension or other action by the City inconsistent with the above settlement terms. This Supplement allows your city to obtain the Steering Committee's recommended settlement terms without the need to take any formal action. If those terms are acceptable and your city does not suspend, reject or modify the proposed settlement, the settlement terms will take effect automatically, by operation of law, on November 18, 1994. If those terms are unacceptable, please proceed with the September 20 Statement of Intent. While your city does not need to take any action, it would be helpful to us if you, your city secretary or city manager would complete the attached form sometime after November 18, 1994 confirming whether or not your city found the Steering Committee's recommendation acceptable. An Energas representative will pick up the form if you would be kind enough to complete it. If you have any questions or comments about the settlement or related procedures, please call your local Energas manager or me at 214/788-3719. Thank you for your cooperation. Sincerely, COIL OMU4, E,040*4� Lee Allen Everett Attorney & Director of Regulatory Affairs LAE: jas To Energas Company Please be aware that the City of Re: Energas Company's 1994 Gas Rate Change Request Lubbock (the "City") found the West Texas Steering Committee's Settlement recommendation, dated November 1, 1994: X acceptable unacceptable Consequently, the City took the following response to the Energas Company Supplement to its September 20, 1994, Statement of Intent to change gas rates: action XL_ the attachodVormal uti Name and title - David L/ Langston, Mayor Date: November 18 , 1994 To Energas Company Please be aware that the City of Re: Energas Company's 1994 Gas Rate Change Request Lubbock (the "City") found the West Texas Steering Committee's Settlement recommendation, dated November 1, 1994: x acceptable unacceptable Consequently, the City took the following response to the Energas Company Supplement to its September 20, 1994, Statement of Intent to change gas rates: x ( the att 1 action Name and title David R. 4akston, Mayor Date: November 17 , 1994 STATEMENT OF INTENT ) OF ENERGAS COMPANY ) TO CHANGE GAS RATES ) AND SERVICE CHARGES ) SUPPLEMENT TO STATEMENT OF INTENT On September 20, 1994, Energas Company filed with the City a Statement of Intent to Change Gas Rates and Service Charges. In that Statement, Energas reserved a right to implement ". . . a lesser or different rate change that will produce revenue not in excess of that noticed herein." Following extensive data exchanges and discussions with the West Texas Steering Committee and its rate consultant, Energas has agreed to settlement terms which includes an increase in the monthly customer charge lower than proposed in the Statement of Intent. That compromise was in consideration for the avoidance of delay and further rate case expenses. Consequently, Energas hereby supplements its Statement with a reduction in the proposed 89(P increase in the monthly customer charge to a 54(P increase in the monthly customer charge. This change is conditioned upon the City taking no action, including suspension, inconsistent with the terms of settlement between Energas Company and the West Texas Steering Committee. Any such inconsistent City action results in a rejection and automatic withdrawal of this Supplement which is in the nature of an offer of settlement. Provided that this Supplement is not rejected, the attached rate schedules, which are consistent with the settlement terms between Energas Company and the West Texas Steering Committee, are substituted, effective November 18, 1994, for the proposed schedules incorporated in the September 20, 1994, Statement of Intent. Dated this 4th day of November, 1994. Respectfully submitted, Energas Company by its attorney and Di ector of Regulatory Affairs Lee Allen Everett Bar ID #06742700 Billing Rate Code 500 Second Revised Sheet No. 51 Cancelling First Revised Sheet No. 51 ENERGAS COMPANY West Texas Service Area GENERAL SERVICE RATE AVAILABILITY This schedule is applicable to general use by domestic and commercial type customers including schools, hospitals and churches for heating, cooking, refrigeration, water heating and other similar type uses. This schedule is not available for service to premises with an alternative supply of natural gas. TERRITORY West Texas Service Area Only MONTHLY RATE Net (a) Customer Charge $5.29 (b) Commodity Charge: Net Gross $5.57 Gross First 4 Mcf per Month C $3.7473 / Mcf $3.9445 / Mcf Next 6 Mcf per Month C% $3.7046 / Mcf $3.8996 / Mcf Next 40 Mcf per Month C $3.6796 / Mcf $3.8733 / Mcf All Over 50 Mcf per Month C $3.6446 / Mcf $3.8364 / Mcf (c) The West Texas Gas Cost Rider applies to this schedule. PROMPT PAYMENT PROVISION The above net rate includes a 5% discount for payment of bills within 15 days after issuance. For all bills paid after such period, the gross rate will apply. The rider adjustments per Mcf are stated in the net amount and will be converted to a gross amount for bills paid after the due date. EFFECTIVE: For bilb rendered on and after Novcmber 18, 1994. ISSUED BY: Mary S. Lovell, Vice President — Rates & Regulatory Affairs Billing Rate Code 540 Second Revised Sheet No. 52 Cancelling First Revised Sheet No. 52 ENERGAS COMPANY West Texas Service Area SMALL INDUSTRIAL RATE AVAILABILITY This schedule is applicable to the sales to any industrial or commercial customer whose predominant use of natural gas is other than space heating, cooking, water heating or other similar type uses. Service under this schedule is available to eligible customers following execution of a contract specifying the maximum hourly load. This schedule is not available for service to premises with an alternative supply of natural gas. TERRITORY West Texas Service Area Only MONTHLY RATE Net (a) Customer Charge $27.29 (b) Commodity Charge: Net First 50 Mcf per Month C $3.3960 / Mcf Next 50 Mcf per Month C- $3.3360 / Mcf All Over 100 Mcf per Month @ $3.2960 / Mcf (c) The West Texas Gas Cost Rider applies to this schedule. PROMPT PAYMENT PROVISION Gross $28.73 Gross $3.5747 / Mcf $3.5116 / Mcf $3.4695 / Mcf The above net rate includes a 5% discount for payment of bills within 15 days after issuance. For all bills paid after such period, the gross rate will apply. The rider adjustments per Mcf are stated in the net amount and will be converted to a gross amount for bills paid after the due date. EFFECTIVE: For bills rendered on and after November 18, 1994. ISSUED BY: Mary S. Lovell, Vice President — Rates & Regulatory Affairs ENERGAS COMPANY West Texas Service Area Original Sheet No. 402 Cancelling First Revised Sheet No. 401 UTILITY SERVICE CHARGES During Business After Hours Hours Turn on new service with meter set $23.50 $35.25 Turn on service (shut—in test required) 19.00 2850 Turn on service (meter read only required) 10.50 15.75 and miscellaneous service calls Reconnect delinquent service or service 2950 39.00 temporarily off at customer's request Dishonored check charge 25.00 EFFECTIVE: For bills rendered on and after November 18, 1994. Resolution No. 4670 December 8, 1994 Item #6 RESOLUTION A wvcn-t 7MnN A[ r.' PTINC'T 1WROVEWNTS ON PORTIONS OF STREETS