HomeMy WebLinkAboutResolution - 3611 - Suspend Requested Rate Adjustment - Energas Company - Feasibility Study - 05_09_1991Resolution No. 3611
May 9, 1991
Item #20
DGV:da
RESOLUTION AND ORDER
WHEREAS, a Statement of Intent to increase rates within the City of
Lubbock was filed April 19, 1991, 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 regu-
latory 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 AND ORDERED 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 provisions of Vernon's Ann.Civ.St., Art.
1446e, hereby suspends the effective date of the proposed rate change indi-
cated 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;
and
SECTION 2. THAT the City Council of the City of Lubbock, in accor-
dance with mandatory requirements of Section 5.08 of the Gas Utility Regu-
latory Act hereby orders and directs that a public hearing upon said
proposed rate change by Energas Company be held in the City Council Chamber
of the Lubbock Municipal Building, 1625 13th Street, at 10:30 A M.
on the _13th day of June , 1991, to determine the reason-
ableness 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 this 9th day of
May , 1991.
ATTEST:
Raneyte Boyd, City Secreta
APPROVED AS TO CONTENT:
obert Kassedgale, Assistant
ity Manager for Financial Services
APPROVED AS TO FORM:
Do`hald G. Vandiver, First `
Assistant City Attorney
- 2 -
B.C. McMI N, MAY -OR -
Energas Company
P. O. Box 1121
Lubbock, Texas 79408
ENERGAAS @
April 19, 1991
The Honorable Mayor and City Officials
Gentlemen:
Resolution No. 3611
May 9, 1991
Item #20
Eugene A. Ehler
President
Energas Company is filing the accompan-' �S� Kent of
Intent to increase its gas utility rates and s e charges and
change its security deposit policy in your city. A similar
Statement of Intent is being filed simultaneously with each of
the 66 incorporated communities which comprise our West Texas
Distribution System.
The company is proposing an annual revenue increase from
domestic, commercial, public authority, small industrial and air
conditioning rates of $5,986,851 or about 6% above current
levels, excluding the effects of the proposed changes in service
charges. The current base rates for most of these customers has
been in effect since November, 1984. The rates applicable to the
small industrial and gas air conditioning customers has been in
effect since December, 1981. The service charges which are
applied to special services requested by customers, such as a new
connection, have not changed since 1979.
Energas Company has successfully implemented several
programs to contain its controllable operating expenses. These
efforts have resulted in considerable benefits to our customers
and have largely been responsible for our ability to go seven
years without an increase in burner tip rates.
However, it has been necessary for Energas to increase its
plant investment in order to continue to provide its customers
with the natural gas service they expect and deserve. These
investments along with increased operating costs have created the
need for additional revenue.
Energas Company will be pleased to respond to any questions
you may have including meeting with representatives of the cities
to discuss this filing and to provide additional information.
Also enclosed is a memorandum from Lee Everett, Energas Company's
Director of Regulatory Affairs, whic', you or your city attorney
might find helpful.
y truly yours,
Eugen A. Ehler
Presi ent
EAE:jas
Enclosures
INTER -OFFICE MEMORANDUM
To: Gene Ehler, President, Energas Company
From: Lee Everett, Director of Regulatory Affairs
Re: Energas Company Rate Filing
Date: April 19, 1991
Energas Company's gas rates are subject to the rate setting
jurisdiction of the. Texas Railroad Commission (for rural areas)
and each incorporated city (for service within that city). A
rate change proceeding is set in motion by the filing of a
Statement of Intent to Change Rates with the appropriate
regulatory authority. The procedure is straight forward and is
set out in Section 5.08 of the Gas Utility Regulatory Act (Tex
Rev Civ Stat Ann art 144be).
The Statement displays the new rates and specifies a
proposed effective date which must be at least 35 days after the
filing date. The rates are not effective until after that date_
The city can postpone or "suspend" the proposed effective date
for 90 days by voting to suspend and notifying the utility in
writing of its decision. I have attached a suspension notice
form that you might want to make available to our cities. The
city would need to both take action and give the written notice
to an Energas representative before the effective date.
It is not necessary for the city to take any additional
action to end up with the same rates as the other cities will
have. We presently have uniform rates in all of our 66 West
Texas System cities. We have drafted the Statement of Intent to
allow us to implement different rates than we proposed in an
effort to retain the flexibility to adjust the rates to uniform
levels once our regulators make a decision. I am available to
discuss the filing and procedural issues with any of the city
representatives or their consultants or attorneys and can be
reached at 214/788-3719.
STATEMENT OF INTENT
ACKNOWLEDGMENT OF RECEIPT
On behalf of the City of�J��
(the City), I acknowledge that Energas Company filed its
Statement of Intent to change rates and service charges with
the City on April 19, 1991.
Name:
Title:
on benair or the City
NOTICE TO ENERGAS COMPANY OF
RATE SUSPENSION
The City Council of Lubbock
(the City) took action at its May 9 1991
meeting suspending for 90 days the rate, service
charge and security deposit policy changes
proposed in the Energas Company Statement of
Intent which was filed with the City on April 19,
1991. The suspension was necessary to allow
adequate time to review the proposed changes.
Sincerely,
Name: � . ���// •� %(�9wi'�
Title: Mayor
On behalf of the City
ENERGAS COMPANY
STATEMENT OF INTENT
TO CHANGE NATURAL GAS
RATES AND SERVICE CHARGES
Now comes Energas Company, a division of Atmos Energy
Corporation, and files this Statement of Intent to Change
Its Natural Gas Rates, Service Charges and Security Deposit
Policies all to be effective on May 24, 1991 within the City
of Lubbock.
Energas Company is a gas utility as defined by Section
1.03 of the Gas Utility Regulatory Act - TEX. REV. CIV.
STAT. Article 1446e. The City has exclusive original
jurisdiction over local gas utility rates subject to
appellate review by the Texas Railroad Commission. Energas
Company proposes the following rates, service charges and
security deposit policy for all classes of customers (other
than transportation and special contract industrial
customers) whose rates are subject to the City's
jurisdiction:
1
Gas Utility Rates
General Service Rate:
Customer Charge:
1st 4 Mcf
Next 6 Mcf
Next 40 Mcf
All Over 50 Mcf per Month
Small Industrial Rate
Customer Charge
1 - 50 Mcf
51 - 100 Mcf
Over 100 Mcf
Gas Air Conditioninq Rate
Net
$4.75
3.8250/Mcf
3.7825/Mcf
3.7.575/Mcf
3.7225/Mcf
Gross
$4.9875
4.0163/Mcf
3.9716/Mcf
3.9454/Mcf
3.9086/Mcf
Net Gross
$26.75 $28.0875
3.4734/Mcf 3.6471/Mcf
3.4134/Mcf 3.5841/Mcf
3.3732/Mcf 3.5419/Mcf
Gas Used per Month $ 3.3732/Mcf $ 3.5419/Mcf
Minimum Monthly Bill $120.30 $126.32
Purchased Gas/Tax Adjustments and Prompt Payment Discount
Provisions Apply to All Rates
Utility Service Charges
Turn on new service with meter set
Turn on service (shut-in test
required)
Turn on service (meter read only
required) and miscellaneous
service calls
Reconnect delinquent service or service
temporarily off at customer's request
During
Business
Hours
$18.00
15.50
: We
23.50
Dishonored check charge 15.00
E
After
Hours
$27.00
23.25
12.00
35.25
Security Deposit Policy
No security deposit will be required of a new customer
who establishes satisfactory credit pursuant to the
Company's Rules of Service. Each time service has been
disconnected for non-payment or tampering, a deposit must
precede each reconnection. The initial deposit shall be
approximately equal to one eighth (1/8) expected annual
usage (but not less than $50.00) and each supplemental
deposit shall be $25.00. The total deposit shall not,
however, exceed one sixth (1/6) of expected annual billings.
Service will not be reconnected until the deposit or
additional deposit is tendered and all arrearages, charges
and damages due to the Company are paid or otherwise
satisfactorily secured.
The above proposed rate, service charges and security
deposit changes are expected to affect approximately 57,803
domestic, commercial, small industrial, public authority and
other tariff customers within the City. The changed charges
could be expected to produce approximately $1,816,235.00 of
additional annual revenue from those customers.
3
The proposed changes are more fully displayed on the
proposed tariff sheets attached and incorporated fully
herein by reference. The specific changes are highlighted
in bold face type. Energas Company also proposes to collect
rate case expenses incurred by either the City or the
company by a 5(P/Mcf surcharge which will terminate following
full recovery of those expenses.
Energas Company reserves the right to implement lower
charges at a later effective date upon written notice to the
City. All communications or notices to the Applicant should
be directed to the undersigned attorney.
Respectfully submitted,
Energas Company, A Division of
Atmos Energy Corporation
P.O. Box 650205
Dallas, Texas 75265-0205
By Its Attorney and Director
of kegulator Affairs
_oo
Lee Allen Everett
(State Bar ID#06742700)
214/788-3719
Billing Rate Code 510
West Texas Service Area First Revised Page No. 051
"MAJOR CHANGE" Supersedes Original Page No. 051
and First Revised Page No. 054
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
Rate
The monthly bills shall be computed at the following rate:
Net
Gross
Customer Charge
$4.75
$4.9875
First 4 Mcf
per
Month @
$3.8250/Mcf
$4.0163/Mcf
Next 6 Mcf
per
Month @
$3.7825/Mcf
$3.9716/Mcf
Next 40 Mcf
per
Month @
$3.7575/Mcf
$3.9454/Mcf
All Over 50
Mcf
per Month @
$3.7225/Mcf
$3.9086/Mcf
The West Texas Gas Cost and Tax Rider applies to this
schedule.
Prompt Payment Provision
The above 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.
Proposed Effective Date:
May 24, 1991
West Texas Service Area
"MAJOR CHANGE"
Availability
Billing Rate. Code 570
First Revised Page No. 052
Supersedes Original Page No. 052
SMALL INDUSTRIAL RATE
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
Rate
The monthly bills shall be computed at the following rate:
Net
Gross
Customer
Charge
$26.75
$28.0875
First 50
Mcf per Month @
$3.4734/Mcf
$3.6471/Mcf
Next 50
Mcf per Month @
$3.4134/Mcf
$3.5841/Mcf
All Over
100 Mcf per Month @
$3.3732/Mcf
$3.5419/Mcf
The West Texas Gas Cost and Tax 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.
Proposed Effective Date:
May 24, 1991
West Texas Service Area
"MAJOR CHANGE"
Billing Rate Code 590
First Revised Page No. 053
Supersedes Original Page No. 053
LARGE GAS AIR CONDITIONING AND/OR ELECTRIC GENERATING GAS SERVICE
Availability
This schedule is available 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
160 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 Only
Rate
The monthly bills shall be computed at the following rate:
Net Gross
Gas Used per Month $3.3732/Mcf $3.5419/Mcf
Minimum Monthly Bill: $120.30 $126.32
The West Texas Gas Cost and Tax 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.
Proposed Effective Date:
' May 24, 1991
ENERGAS COMPANY Billing Rate Code
West Texas Service Area Original Page No. 055
GAS COST AND TAX RIDER
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 from the base level of those
expenses embedded in the rates. 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 (GCA)
The GCA to be applied to each Mcf billed shall be computed as
follows and rounded to the nearest $0.0001:
GCA = ( G/S - Base + CF ) x TF
Where:
1. "G" in dollars, is the expected cost of gas for the expected
sales billing units.
2. "S" in MCF at 13.6 psia, is the expected sales billing units
to be billed to the Company's West Texas Service Area.
3. "CF" in $/MCF at 13.6 psia, is a correction factor charge per
MCF 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 12 months ended September basis, the Company
shall review the percentage of lost and unaccounted for gas
and if this percentage exceeds 50 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 while the Company will absorb the
excess.
4. "Base" in $/MCF at 13.6 psia, is the base cost of gas of
$2.6779/MCF that is included in base rate.
5. "TF" is a tax factor of 1.0526, this factor shall be adjusted
when necessary to reflect any increase in revenue related tax
rates from the level embedded in the Company's rates. The
increment of increased change in tax rates shall also be
applied to the base gas cost.
Tax Adjustment
The net monthly bill for service as calculated under the
applicable rate schedule excluding GCA adjustments shall be
increased or decreased by the proportionate part of any taxes
(including new taxes), assessments, licenses or franchise fees,
levied or assessed against the company or upon its natural gas
business by any Governmental Authority at rates higher or lower
than those in effect as of January 1, 1991.
In the event that any of the above are limited to an area or
territory less than the entire natural gas service area of the
company, there shall be added to or subtracted from the rates and
charges specified in any of the company's rate schedules amounts
which in the aggregate for the company's customers in such area
shall be equal to the amount of any such increased or decreased
charge imposed upon the Company.
Proposed Effective Date:
May 24, 1991
ENERGAS COMPANY
West Texas Service Area
Original Page No. 401A
UTILITY SERVICE CHARGES
Turn on new service with meter set
Turn on service (shut-in test
required)
Turn on service (meter read only
required) and miscellaneous
service calls
Reconnect delinquent service or service
temporarily off at customer's request
Dishonored check charge
Effective Date: May 24, 1991
During
Business
$18.00
15.50
23.50
15.00
After
Hours
$27.00
23.25
12.00
35.25
ENERGAS COMPANY
West Texas Service Area
Original Page No. 404A
SECURITY DEPOSIT POLICY
No security deposit will be required of a new customer
who establishes satisfactory credit pursuant to the
Company's Rules of Service. Each time service has been
disconnected for non-payment or tampering, a deposit must
precede each reconnection. The initial deposit shall be
approximately equal to one eighth (1/8) expected annual
usage (but not less than $50.00) and each supplemental
deposit shall be $25.00. The total deposit shall not,
however, exceed one sixth (1/6) of expected annual billings.
Service will not be reconnected until the deposit or
additional deposit is tendered and all arrearages, charges
and damages due to the Company are paid or otherwise
satisfactorily secured.
Proposed Effective Date: May 24, 1991
ENERGAS COMPANY
WEST TEXAS SERVICE AREA
The company's West Texas Service area is comprised of the
following communities:
Abernathy
Lamesa
Ralls
Amherst
Levelland
Ransom Canyon
Anton
Littlefield
Ropesville
Big Spring
Lockney
Seagraves
Bovina
Lorenzo
Seminole
Brownfield
Los Ybanez
Shallowater
Buffalo Springs Lake
Lubbock
Silverton
Canyon
Meadow
Slaton
Coahoma
Midland
Smyer
Crosbyton
Muleshoe
Southland
Dimmitt
Nazareth
Springlake
Earth
New Deal
Stanton
Edmonson
New Home
Sudan
Fioydada
Odessa
Tahoka
Forsan
O'Donnell
Timbercreek Canyon
Friona
Olton
Tulia
Hale Center
Opdyke West
Turkey
Happy
Pampa
Vega
Hart
Panhandle
Welch
Hereford
Petersburg
Wellman
Idalou
Plainview
Whitharrall
Kress
Post
Wilson
Lake Tanglewood
Quitaque
Wolfforth
ENERGAS COMPANY
STATEMENT OF INTENT
TO CHANGE NATURAL GAS
RATES AND SERVICE CHARGES
Now comes Energas Company, a division of Atmos Energy
Corporation, and files this Statement of Intent to Change
Its Natural Gas Rates, Service Charges and Security Deposit
Policies all to be effective on May 24, 1991 within the City
of Lubbock.
Energas Company is a gas utility as defined by Section
1.03 of the Gas Utility Regulatory Act - TEX. REV. CIV.
STAT. Article 1446e. The City has exclusive original
jurisdiction over local gas utility rates subject to
appellate review by the Texas Railroad Commission. Energas
Company proposes the following rates, service charges and
security deposit policy for all classes of customers (other
than transportation and special contract industrial
customers) whose rates are subject to the City's
jurisdiction:
1
Gas Utility Rates
General Service Rate:
Customer Charge:
1st 4 Mcf
Next 6 Mcf
Next 40 Mcf
All Over 50 Mcf per Month
Small Industrial Rate
Customer Charge
1 - 50 Mcf
51 - 100 Mcf
Over 100 Mcf
Gas Air Conditioning Rate
Net
$4.75
3.8250/Mcf
3.7825/Mcf
3.7575/Mcf
3.7225/Mcf
Net
$26.75
3.4734/Mcf
3.4134/Mcf
3.3732/Mcf
Gross
$4.9875
4.0163/Mcf
3.9716/Mcf
3.9454/Mcf
3.9086/Mcf
Gross
$28.0875
3.6471./Mcf
3.5841/Mcf
3.5419/Mcf
Gas Used per Month $ 3.3732/Mcf $ 3.5419/Mcf
Minimum Monthly Bill $120.30 $126.32
Purchased Gas/Tax Adjustments and Prompt Payment Discount
Provisions Apply to All Rates
Utility Service Charges
Turn on new service with meter set
Turn on service (shut-in test
required)
Turn on service (meter read only
required) and miscellaneous
service calls
Reconnect delinquent service or service
temporarily off at customer's request
Dishonored check charge
2
During
Business After
Hours Hours
$18.00 $27.00
15.50 23.25
8.00 12.00
23.50
15.00
35.25
Security Deposit Policy
No security deposit will be required of a new customer
who establishes satisfactory credit pursuant to , the
Company's Rules of Service. Each time service has been
disconnected for non-payment or tampering, a deposit must
precede each reconnection. The initial deposit shall be
approximately equal to one eighth (1/8) expected annual
usage (but not less than $50.00) and each supplemental
deposit shall be $25.00. The total deposit shall not,
however, exceed one sixth (1/6) of expected annual billings.
Service will not be reconnected until the deposit or
additional deposit is tendered and all arrearages, charges
and damages due to the Company are paid or otherwise
satisfactorily secured.
The above proposed rate, service charges and security
deposit changes are expected to affect approximately 57,803
domestic, commercial, small industrial, public authority and
other tariff customers within the City. The changed charges
could be expected to produce approximately $1,816,235.00 of
additional annual revenue from those customers.
3
The proposed changes are more fully displayed on the
proposed tariff sheets attached and incorporated fully
herein by reference. The specific changes are highlighted
in bold face type. Energas Company also proposes to collect
rate case expenses incurred by either the City or the
company by a 54P/Mcf surcharge which will terminate following
full recovery of those expenses.
Energas Company reserves the right to implement lower
charges at a later effective date upon written notice to the
City. All communications or notices to the Applicant should
be directed to the undersigned attorney.
Respectfully submitted,
Energas Company, A Division of
Atmos Energy Corporation
P.O. Box 650205
Dallas, Texas 75265-0205
By Its Attorney and Director
of egulator Affairs
Lee Allen Everett
(State Bar ID#06742700)
_. 214/788-3719