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HomeMy WebLinkAboutResolution - 6478 - Suspend Effective Date_Schedule Hearing - Proposed Rate Change - Energas Company - 08_26_1999Resolution No. 6478 Aug. 26, 1999 Item No. 26a RESOLUTION AND ORDER WHEREAS, a Statement of Intent to increase rates within the City of Lubbock was filed August 4, 1999, with the City Secretary of the City of Lubbock by Energas Company; and WHEREAS, the City Council of the City of Lubbock, sitting as a regulatory authority under provisions of law, is required by law to hold a public hearing to inquire into the reasonableness of such proposed gas rate change; and WHEREAS, the City Council has authority under provisions of law to suspend implementation of such changed rate for up to ninety (90) days pending hearing and decision on such proposed rate change; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. THAT the City Council of the City of Lubbock, sitting as a regulatory authority under authority of Chapter 103 of the Utilities Code, hereby suspends the effective date of the proposed rate change indicated in the Statement of Intent to increase rates filed with the City Secretary by Energas Company, for a period not to exceed ninety (90) days from the date when such rate change would otherwise have been effective in order for the City of Lubbock and other affected cities to study the rate request and determine its necessity; and SECTION 2. THAT the City Council of the City of Lubbock, in accordance with mandatory requirements of Section 104.105 of the Utilities Code hereby orders and directs that a public hearing upon said proposed rate change by Energas Company be held in the City Council Chambers of the Lubbock Municipal Building, 1625 131h Street, at 10:30 A.M. on the 23`d day of September, 1999, to determine the reasonableness of such proposed rate increase. The City Secretary of the City of Lubbock is hereby authorized and directed to give Energas Company immediate written notice of such hearing by serving a copy of this Resolution and Order upon them at their business office located in the City of Lubbock. RESOLVED AND ORDERED by the City Council this26thday of August , 1999. Y SI N, MA ATTEST: a e arnell City S retary APP VED AS TO CONTENT: 'chard Burdine Assistant City Manager APPROVED AS TO FORM: r Don Vandiver Assistant City Attorney rkb/ccdocs/energasnew.res August 20, 1999 Resolution No. 6478 Aug. 26, 1999 Item No. 26a STATEMENT OF INTENT TO CHANGE GAS RATES ENERGAS COMPANY, a "gas utility" as defined by Section 101.003(7) of the TEXAS UTILITIES CODE ("TUC"), hereby states its intent to implement the revised gas tariffs attached hereto as Exhibits A, B, C, and D and incorporated herein, to be effective for gas service within the city limits of Lubbock, Texas (hereinafter the "City') on September 8, 1999, or 35 days after filing with the City, whichever is later. The proposed revisions and additions to the current Energas Company rate schedules are indicated by italicized print. New tariffs are designated as such in the upper right page border as "Original" pages. Summary of Proposed Changes ENERGAS COMPANY proposes to restructure its gas rates to moderate bill variability during the heating season, to increase its revenues from gas service and increase its charges for miscellaneous services such as reconnecting gas services following nonpayment (Please see Exhibit A). The Company also proposes changes to its Gas Cost Adjustment Clause (Please see Exhibit B). The Company also proposes new Riders to support its Steel Pipe Improvement Program, also known as "SPIP" (Please see Exhibit C) and to assure that the Company has an opportunity to recover costs for new facilities related to new customers (please see Exhibit D). Exhibit D contains two alternative proposals. Additionally, the Company proposes to collect the out-of-pocket rate case expenses of both the City and the Company related to this proposal through an eighteen month surcharge which will expire following recovery of actual expenses plus interest. Number of Customer Affected And Expected Revenue Change The proposed changes will affect all classes of tariff customers including Residential, Commercial, Public Authority, Small Industrial and Air Conditioning customers who elect gas service from Energas Company within the City. There are approximately 61,585 Energas tariff customers within the City. The proposed changes set out in Exhibit A could be expected to increase the Company's annual revenues by approximately $2,794,111. The propose changes set out in Exhibit B are not expected to change the annual revenues of the company other than timing changes related to gas cost recovery. The proposed changes set out in Exhibits C and D will not increase Company revenues related to the test year except to the extent the Company makes additional investment in capital improvements to replace existing facilities or add new facilities. Based upon potential capital requirements in the future related to the SPIP Program and new customer additions, the expected annual incremental revenues from Exhibits C and D are approximately $408,553 or less related to customers within the City. Public Notice Energas Company will promptly undertake to notify the public of the proposed changes in its gas rates by publication in newspapers of general circulation in the affected area once each week for four consecutive weeks. Additional copies of the Company's proposal are available from the undersigned Company representative. The Proposed Increase is A Major Change The proposed rate changes will increase the aggregate revenues of the Company by more than the greater of $100,000 or 2.5% and, therefore is a "major change" as defined by Section 104.101 of the TUC. Company Representative For Notification Notices of Hearings and other communications related to this proposal should be directed to: Mr. C.W. "Bill" Guy Vice President of Rates and Regulatory Affairs 5110 80' Street, P.O.Box 1121 Lubbock, Texas 79408-1121 Tele. (806) 798-4457 Fax (806) 798-4494 Relief Requested Wherefore, premises considered Energas Company respectfully requests that the gas rates, terms and conditions, gas cost adjustment clause and riders proposed herein as Exhibits A, B, C, and D be allowed to take effect without delay. Energas Company reserves the right, as a lesser included alternative request, to implement, no sooner than the effective date proposed herein, lesser or different rate changes that could be expected to produce an increase in annual revenue not in excess of the increases proposed in Exhibits A, B, C and D. Respectfully submitted, ENERGAS COMPANY, By its Vice President of Rates and Regulatory Affairs CAI' -Ai C.W. "Bill" Guy FILED WITH THE CITY ON AUGUST 4, 1999 ENERGAS COMPANY West Texas Service Area Fifth Revised Page No. 51 Supercedes Fourth Revised Page No. 51 For Service Inside City Limits I- GENERAL SERVICE RATE - RESIDENTIAL AVAILABILITY This schedule is applicable to general use by Residential customers for heating, cooldng, 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 MONTHLY RATE (a) Customer Charge (Rate Code 503) $ 9.00 d' a (ti) Commodity Charge: First 50 Ccf per Month @ $0.1230 /Ccf Next 100 Ccf per Month @ $0.1105 / Ccf Next 100 Ccf per Month @ $0.0980 / Ccf All Over 250 Ccf per Month @ $0.0905 / Ccf (c) The West Texas Gas Cost Rider applies to this schedule. (d) The System Expansion Rider applies to this schedul- (e) The SPIP Rider applies to this schedul. EFFECTIVE: September 8,1999 Exhibit A, Page 1 of 9 ISSUED BY: C. W. Guy, Vice President - Rates and Regulatory Affairs ENERGAS COMPANY West Texas Service Area Second Revised Page No. 51(A) Supercedes First Revised Page No. 51(A) For Service Inside City Limits I GENERAL SERVICE - STATE INSTITUTIONS RATE AVAILABILITY This schedule is applicable to gas service to state agencies (as provided in Texas Utilities Code, Section 104.202 ) including, but not limited to, state college and universities, MHMR schools, agriculture, highway and public safety departments, prisons, and other facilities owned or operated by the State of Texas for the purpose of heating, cooldng, refrigeration, water heating and other similar type uses. TERRITORY West Texas Service Area MONTHLY RATE (a) Customer Charge (b) Commodity Charge: First 500 Ccjper Month Ca, Next 1500 Ccf per Month a@ Next 2000 Ccf per Month All Over 4000 Ccf per Month aC3 (c) The West Texas Gas Cost Rider applies to this schedule. (d) The SPIP Rider applies to this schedule. EFFECTIVE: September 8,1999 S 27.08 $0.0980 / Ccf $0.0890I Ccf $0.0720 / Ccf $0.0650I Ccf ISSUED BY: C W. Guy, Vice President -Rates and Regulatory Affairs Exhibit A, Page 2 of 9 ENERGAS COMPANY West Texas Service Area Original Page No. 51(B) For Service Inside City Limits GENERAL SERVICE RATE - COMMERCL4L l AVAILABILITY This schedule is applicable to general use by 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 MONTHLY RATE (a) Customer Charge t 13.00 (b) Commodity Charge: First 100 Ccf per Month @ $0.1180 / Ccf Next 300 Ccf per Month @ $0.1080 / Ccf Nett 400 Ccf per Month @ $0.0930 / Ccf All Over 800 Ccf per Month @ $0.0855 / Ccf (c) The West Texas Gas Cost Rider applies to this schedule. (d) The SPIP Rider applies to this schedule - EFFECTIVE: September 8,1999 Exhibit A, Page 3 of 9 ISSUED BY: C W. Guy, Rce President - Rates and Regulatory Affairs ENERGAS COMPANY West Texas Service Area AVAILABILITY Original Page No. Sl (C) For Service Inside City Limits GENERAL SERVICE RATE - PUBLICAUTFIORITY 1 This schedule is applicable to general use by Public Authority type customers, including public schools, for heating, cooldng, 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 (a) Customer Charge S 28.50 (b) Commodity Charge: First 500 Ccf per Month @ S0.1180 / Ccf Next 2000 Ccf per Month @ $0.1080 / Ccf Next 2500 Ccf per Month @ $0.0905 / Ccf All Over 5000 Ccf per Month @ $0.0830 / Ccf (c) The West Texas Gas Cost Rider applies to this schedule. (d) The SPIP Rider applies to this schedule EFFECTIVE: September 8,1999 Exhibit A, Page 4 of 9 ISSUED BY: C W. Guy, rice President - Rates and Regulatory Affairs ENERGAS COMPANY West Texas Service Area SMALL INDUSTRIAL RATE AVAILABILITY Fifth Revised Page No. 52 Supercedes Fourth Revised Page No. 52 For Service Inside City Limits This schedule is applicable to the sales to any Industrial or commercial customer whose predominant use of natural gas is other than space heating, cooidng, 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 (a) Customer Charge $ 3L50 (b) Commodity Charge: First 1000 Ccf per Month @ $0.0880 / Ccf Next 2000 Ccf per Montle @ $0.0730 / Ccf Next 3000 Ccf per Montle @ 50.0680 /Ccf AQ Over 6000 Ccf per Montle @ $0.0635 /Ccf (c) The West Texas Gas Cost Rider applies to this schedule. (d) The SPIPRider applies to this schedule EFFECTIVE: September 8,1999 Exhibit A, Page 5 of 9 ISSUED BY: C. W. Guy, Vice President - Rates and Regulatory Affairs ENERGAS COMPANY West Texas Service Area Fourth Revised Page No. 53 Supercedes Third Revised Page No. 53 For Service Inside City Limits LARGE GAS AIR CONDITIONING AND/OR ELECTRIC GENERATING GAS SERVICE AVAILABILITY This schedule is applicable to customers who require gas service for 50 tons or more of gas air conditioning equipment, or for 100 KW or more of gas driven electric generating equipment, or any combination thereof that has at least the equivalent of 50 tons of gas air conditioning equipment or 100 KW of gas driven electric generating equipment. This rate schedule does not apply to municipally owned power plants or electric utilities. This schedule is not available for service to premises with an alternative supply of natural gas. TERRITORY West Texas Service Area MONTHLY RATE The monthly bills shall be computed at the following rate: (a) Gas used per month $0.06550/Ccf (b) Minimum monthly bill $150.00 (c) The West Texas Gas Cost Rider applies to this schedule. (d) The SPIP Rider applies to this schedule. EFFECTIVE: September 8,1999 ISSUED BY: C W. Guy, Vice President - Rates and Regulatory Affairs Exhibit A, Page 6 of 9 ENERGAS COMPANY West Texas Service Area AVAILABILITY Third Revised Page No. 55 Supercedes Second Revised Page No. 55 For Service Inside City Limits AIR CONDITIONING RATE RIDER This rider is available to any customer using new natural gas air conditioning equipment installed on the customer's premises on or after July 1,1995 and will be in effect only during the months of Mai through September. During the months of October through April the customer's applicable rate schedule shall apply. When gas service for non-residential air conditioning equipment is not separately metered, Energas will compute the volume used for non-residential air conditioning equipment on an individual customer basis using the following definitions: Air Conditioning Load - Any consumption during the months of May through September that exceeds Base Load. Base Load -The average monthly gas consumption during the months of hiay through September less any gas consumption for space heating or air conditioning purposes. Base Load, as defined above, for existing non-residential customers will be determined by Energas on a historical consumption basis. Base Load for new non-residential customers will be determined by Energas on a connected load analysis basis and redetermined as necessary when actual Base Load consumption data becomes available. Rates for Base Load for this Rider will be billed from the General Service or Small Industrial rate schedules, whichever is applicable. West Texas service Area MONTIILY RATE (a) Customer Charge: Residential Rate a 8.50 Commercial Rate a 13.00 Small Industrial Rate $38.50 (b) Commodity Charge: Residential First 60 Ccf per Month @ $0.1230 / Ccf All Over 60 Ccf per Month C3a $0.0655 / Ccf EFFECTIVE: September 8,1999 ISSUED BY: C W. Guy, Vice President - Rates and Regulatory Affairs Exhibit A, Page 7 of 9 ENERGAS COMPANY West Texas Service Area Third Revised Page No. 56 Supercedes Second Revised Page No. 56 For Service Inside City Limits AIR CONDITIONING RATE RIDER MONTHLY RATE (continued) Non -Residential, With Separate Metering of Air Conditioning Equipment All Cc f per Month @ 50.0655 / Cef Non -Residential, Without Separate Metering of Air Conditioning Equipment base Loaa per uj per Month g ** /Ccf " t cj over tsase Load per Month ag $0.0655 /Ccf (c) The West Texas Gas Cost Rider applies to this schedule. (d) The System Expansion Rider applies to Residential customers receiving service under this schedule- (e) The SPIP Rider applies to this schedule: ** Rates per applicable General Service or Small Industrial Rate Schedules. EFFECTIVE: September 9,1999 Exhibit A, Page 8 of 9 ISSUED BY: C W. Guy, Vice President - Rates and Regulatory Affairs ENERGAS COMPANY West Texas Service Area For: West Texas Service Area Second Revised Page No. 402 Supercedes First Revised Page No. 402 For Service Inside City Limits UTILITY SERVICE CHARGES During Business After Hours Hours Turn on new service with meter set $40.00 $60.00 Turn on service (shut-in test required) and 30.00 45.00 other miscellaneous service calls Turn on service (meter read only required) 10.00 I5.00 Reconnect delinquent service or service 40.00 60.00 temporarily off at customer's request Dishonored check charge 25.00 EFFECTIVE: September 8,1999 Exhibit A, Page 9 of 9 ISSUED BY: C.W. Guy, Vice President - Rates & Regulatory Affairs ENERGAS COMPANY west -texas GAS COST ADJUSTMENT GCA .APPLICATION Fifth Revised Page No. 58 Superceding Fourth Revised Page No. 58 For Service Within City Limits Gas bills issued under rate schedules to which this Rider applies will include adjustments to reflect decreases or increases in purchased gas costs or taxes. Any such adjustments shall be filed with the appropriate regulatory authority before the beginning of the month in which the adjustment will be applied to bills. The amount of each adjustment shall be computed as follows: GAS COST ADJUSTMENT (GCAI The GCA to be applied to each Ccf billed shall be computed as follows and rounded to the nearest $0.01: Where: GCA -(G/S+CF)XTF 1. "G", in dollars, is the expected cost of gas for the expected sales billing units. 2. "S", In Ccf at 13.6 psia, is the expected sales billing units to be billed to the customers in the respective sector of the Company's West Texas Service Area as shown on Page No. 3. 3. "CF", in S/Ccf at 13.6 psia, is a correction factor charge per Ccf to adjust for the cumulative monthly differences between the cost of gas purchased by the Company and the amount of gas cost billed the customer. Once a year, on a 42 months ended September basis, the Company shall review the percentage of lost and unaccounted for gas. If this percentage exceeds 5% of the amount metered in, the correcting account balance will be reduced so that the customer will effectively be charged a maximum of 5% for lost and unaccounted for gas and the Company will absorb the excess. 4. "TF" is a tax factor of 1.0526. The Company's base rates include a base cost ofgas of $00. EFFECTIVE: September 8, 1999 Exhibit B, Page 1 of 1 ISSUED BY: C. W. Guy, rice President -Rates and Regulatory Affairs Original Page No. 415 (A) For Service Inside City Limits ENERGAS COMPANY West Texas Service Area rovement Applicability The Steel Pipe Improvement Program (SPIP) Rider is applicable to customers' monthly gas bills as Indicated on the company's rate schedules. Description of Program The SPIT is a capital investment program to replace and improve steel pipe on the company's system. The SPIT Rider provides for a monthly charge to customers which is designed to allow the company to recover costs associated with the replacement of steel pipe. Monthly Charge and Billing Monthly Charge per Customer - 5.094 The company may implement billing of charges under the SPIP Rider upon approval by the appropriate regulatory authority. The company shall notify customers of the SPIP Rider and charge by bill insert or bill message prior to billing Implementation and by bill message or bill insert upon actual surcharge billing. The initial SPIP plan shall commence January 1, 2000. The initial SPIP charge shall be based on estimated costs associated with estimated Eligible Investment for the plan's first year. Charges for the Initial plan year shall commence with bills rendered on and after January 1, 2000. Eligible Investment and Costs Only costs associated with capital improvement projects identified in the SPIP plan ("Eligible Investment") are eligible for recovery under the SPIP Rider. Eligible Investment shall include estimated capital expenditures for the current plan year and actual capital expenditures for prior plan years. Costs associated with such Eligible Investment include depredation expense, property tax expense, return, and associated income taxes. EFFECTIVE: September 8,1999 ISSUED BY: C.W. Guy, Vice President - Rates & Regulatory Affalrs Exhibit C, Page 1 of 3 Original Page No. 416 (A) For Service Inside City Limits ENERGAS COMPANY West Texas Service Area Reiportin Annually, not earlier than 90 days, nor later than 60 days prior to the start of the anniversary billing month of the SPIP plan, the company shall file a report with the appropriate regulatory authority reconciling all activities during the current SPIP plan year, including: 1. The amount of estimated Eligible Investment and the amount actually expended and the location of facilities installed during the plan year. 2. The costs associated with such estimated and actual Eligible Investment, including: depreciation expense, property tax,. return on Investment, and associated income taxes. 2.1. Depreciation expense shall be calculated at the rates last approved by regulatory authorities for use by the company for each class of plant. First year depredation expenses for plant placed In service in a plan year shall be based on 50% of the amount of such Eligible Investment. Depreciation expense in subsequent years shall be calculated on 100% of the amount of Eligible Investment made in prior plan years. 2.2. Property tax expense shall be actual cost Incurred during the plan year related to 100% of the Eligible Investment made during the plan year and 100% of the Eligible Investment made In prior plan years. 2.3. Return on investment shall be calculated on 50% of the amount of Eligible Investment estimated to be made during the plan year and 100% of the amount of Eligible Investment made In prior plan years. The rate of return shall be the rate approved for use by.the company in setting its tariff rates for service. 3. The amounts of capital investment retired as a result of the SPIP replacements. Such retirement amount is to be offset against Eligible Investment for the purposes of calculating expenses associated with the SPIP program. 4. The amounts of SPIP charges collected during the plan year, by customer class by rate schedule, by service area. 4.1. Amounts under- or overcollected via the SPIP charge during the plan year will be carried forward to the next SPIP plan year and used to increase or reduce the SPIP charge for that next plan year. EFFECTIVE: September 8,1999 ISSUED BY: C.W. Guy, Vice President - Rates & Regulatory Affairs Exhibit C, Page 2 of 3 Original Page No. 417 (A) For Service Inside City Limits ENERGAS COMPANY West Texas Service Area 5. The amount of the SPIP charge for the next SPIP plan year along with all supporting calculations for estimated investment, expenses, return, prior over- or under -collections, and estimated billing determinants for the next plan year. General 1. The company may use estimates, to the extent necessary, in reporting amounts collected from customers during, the plan year and in calculating Eligible Investment and expenses. All such estimates must be reconciled in the next succeeding plan year. 2. The company shall implement revised SPIP charges only upon regulatory approval. If regulatory approval is not received prior to the start of a new SPIP plan year, the company shall continue to charge the previously approved SPIP charge until such approval Is received. Amounts collected and amounts expended by the company are subject to subsequent reconciliation. 3. The initial SPIP plan Is based upon a planned eight -year pipe replacement program. The company may increase or decrease by up to 15% of the budgeted amount the amount actually expended within a plan year without seeldng or receiving specific regulatory approval. This provision Is intended to provide the company operational flexibility in implementing the SPIP program. Such increased or decreased SPIP expenditures shall be reconciled in the company's subsequent annual SPIP reports. 4. In the event the company ®es a rate application, all Eligible Investment upon which expenses and a return have been recovered pursuant to the SPIP shall be included in rate base, net of accumulated depredation, in calculating the revenue requirement. The SPIP charge applicable to such facilities shall be discontinued upon the effective date of new base rates resulting from such rate application. 5. The Texas Railroad Commission shall be the body before which disputes arising from the SPIP program are to be resolved, if the parties to the dispute cannot otherwise achieve resolution. EFFECTIVE: September$,1999 ISSUED BY: C.W. Guy:, Vice President - Rates & Regulatory Affairs Exhibit C, Page 3 of 3 Original Page No. 410 (a) For Service Within City Limits ENERGAS COMPANY West Texas System Annlicability The System Expansion Rider Is applicable to Residential customers receiving service at new residential service connections, commencing with connections made on and after January 1, 2000, as indicated on the applicable company rate schedules. Description of Rider This Rider is designed to recover the amount of Excess Investment (as herein defined) associated with new residential service connections, along with carrying costs and related taxes. Monthly Charge and Billing Charge for new residential service connections made on and after January 1, 2000 which require main extension: $11.16 Charge for new residential service connections made on and after January 1, 2000 not requiring main extension: S 7.15 The charge shall be payable for one hundred eighty (180) months and is applicable to the service address, regardless of changes in ownership, commencing with the first occupant of the address following service connection. The charge shall be waived for qualified low-income customers ("LUMAP participants") receiving service at an address otherwise eligible for the the charge. Eligible Investment and Costs "Excess Investment" is defined as the amount by which current distribution facility costs exceed embedded distribution facility Costs. "Distribution facility costs" include the installed cost of meters, service lines, regulators, and distribution main of a size necessary to serve residential customers. "Embedded distribution facility costs" are defined as those costs underlying currently effective base tariff rates. Separate charges shall be computed and applied for those service connections requiring main extension and for those connections not requiring main extension. The company shall update the amounts of the charges annually and implement such new charges prospectively for new residential service connections in the ensuing year. If the amount of increase or decrease to the monthly charge is less than 10%, the company may waive implementation of such Increase or decrease and charge the existing charge for new service connections made in the ensuing year. EFFECTIVE: September 8,1999 ISSUED BY: C.W. Guy, Vice President - Rates & Regulatory Affairs Exhibit D, Page 1 of 2 Original Page No. 411 (a) For Service Within City Limits ENERGAS COMPANY West Texas System e ortin The company shall file a report with the appropriate regulatory authority anually, not later than 120 days after the close of the Company's fiscal year, listing the number and type of Premises Charges levied during the fiscal year and the financial accounting for the disposition of revenues, costs, and taxes. EFFECTIVE: September 8,1999 ISSUED BY: C.W. Guy, Vice President - Rates & Regulatory Affairs Exhibit D, page 2 of 2 Alternate Original Page No. 410 (a) For Service Within City Limits ENERGAS COMPANY West Texas System SYSTEM EXPANSION RIDER Applicability The System Expansion Rider is applicable to all Residential customers, unless waived pursuant to the Waiver Provision, commencing with bills rendered on and after January 1, 2000, as indicated on the applicable company rate schedules. Description of Rider This Rider is designed to recover the costs of system expansion, specifically the amount of Excess Investment (as herein defined) associated with new residential service connections, along with carrying costs and related taxes. Monthly Charge and Billing Residential Customers S .49/Bill Waiver Provision The charge shall be waived for qualified low-income customers ("LUMAP participants") receiving service at an address otherwise eligible for the charge. Eligible Investment and Costs "Excess Investment" is defined as the amount by which current distribution facility costs exceed embedded distribution facility costs. "Distribution facility costs" include the installed cost of meters, service lines, regulators, and distribution main of a size necessary to serve residential customers. "Embedded distribution facility costs" are defined as those costs underlying currently effective base tariff rates. The company shall update the -amount of the charge annually and implement such new charge in the ensuing year. If the amount of increase or decrease to the monthly charge is less than 10%, the company may waive implementation of such increase or decrease and continue the existing charge. Reiportin The company shall file a report with the appropriate regulatory authority annually, not later than 120 days after the close of the Company's fiscal year, listing the number and amount of charges levied during the fiscal year and the financial accounting for the disposition of collections and costs. Amounts over- or under -collected from customers will be carried forward to the next year's Rider. EFFECTIVE: September 1,1999 ISSUED BY: C.W. Guy, Vice President - Rates & Regulatory Affairs Exhibit D, Alternate Page 1 of 1