HomeMy WebLinkAboutOrdinance - 1139-1951 - Defining And Prescribing The General Service Rate Schedule Natural Gas - 09/14/1951CDr!f
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ORDINANCE NO. 1139 og-ze-\.9'.s;,
AN ORDINANCE DEFINING AND PRESCRIBING THE GENERAL SERVICE
RATE SCHEDULE COVERING THE SALE OF NATURAL GAS AND NATURAL
GAS SERVICE BY THE WEST TEXAS GAS COMPANY IN THE CITY LIMITS OF
THE CITY OF LUBBOCK.
WHEREAS, heretofore, to-wit, under date of July 2, 1951, West Texas
Gas Company has submitted a petition to the governing body of the City of
Lubbock a proposed general service rate schedule to cover the sale of natural
gas and natural gas service in the City limits of the City of Lubbock by the
West Texas Gas Company, such application being here referred to and made a
part hereof; and,
WHEREAS, said application has been considered by the governing body
of the City of Lubbock and evidence heard thereon, and it is the opinion of the
City Commission that the proposed schedule of rates for the sale of natural
gas and natural gas service by the West Texas Gas Company is fair and just,
and should be approved; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF LUBBOCK:
SECTION 1. THAT the West Texas Gas Company, its successors and
assigns, may make the charges for the sale of natural gas and natural gas
service under its General Service Rate in the City of Lubbock as follows:
First 2, 000 Cu. Ft. per Month@ 62-1/2¢ per M. Cu. Ft.
Next 8, 000 Cu. Ft. per Month@ 55~ perM. Cu. Ft.
Next 40. 000 Cu. Ft. per Month@ 50¢ perM. Cu. Ft.
Next 50,000 Cu. Ft. per Month @ 45¢ perM. Cu. Ft.
Next 200, 000 Cu .. Ft. per Month @ 35~ perM. Cu. Ft.
Next 200, 000 Cu. Ft. per Month@ 30¢ per per M. Cu. Ft.
All over 500.000 Cu. Ft. per Month @ 25~ perM. Cu. Ft.
Minimum Bill $1.25 per Month
Additional Charge -One-ninth {1/9) of bill will be added if not
paid within ten days after date rendered.
SECTION 2. THAT said rates be approved by the City Commission of the
City of Lubbock as being fair and just rates to be charged by the West Texas
Gas Company, its successors and assigns , and shall be effective with the met er
reading on and after November 1, , 1951.
AND IT IS SO ORDERED.
On motion of Commissioner Hufstedler , seconded by Com----------------------
missioner 1'1orris , the foregoing Ordinance was passed on
----------------~-------......... first reading this the 14th day of September , 1951, by the following
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v ote of the City Commission:
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Com~issioners voting ''Yea": Mor ris, Hufstedler, Davis and Thomas
Mayor Whiteside
Commissioners voting "Nay": None
On motion of Commissioner Hufstedler , seconded by Com-
missioner Thomas the foregoing Ordinance was passed on
------------------
second reading on this-the 28th day of September , 1951, by the ------------------
following vote of the City Commission:
Commissioners voting "Yea": Hufstedler, Davis, Thomas and
Mayor Whiteside
Commissioners voting "Nay": None
ATTEST:
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C. I. WALL
P. C. DRAWER 1121
LUBBOCK, TEXAS
September l41 19$1
To the Honorable Mayor and City Commission
City of Lubbock
Gentlemen•
Under date of July 2, 1951, information and data pertaining to
a request for an increase in our General Service Rate covering natural
gas and natural gas service was submitted to you for your consideration.
West Texas Gas Company serves 43 incorporated cities and towns
in west Texas. These towns are as follows: Hereford, Friona, Bovina,
Dimmitt, Canyon, Happy, Tulia, Silverton, Quitaque, Turkey, Plainview,
Hale Center, Lockney, Floydada, Abernathy, Lubbock, Slaton, Post,
Levelland, Little.field, Amherst, Sudan, Muleshoe, Anton, Idalou,
Lorenzo, Ralls, Crosbyton, Petersburg, Wilson, Tahoka, O•Donnell,
Lamesa, Ropesville, Meadow, Brownfield, Seagraves, Seminole, Midland,
Stanton, Odessa, Olton, Earth.
For your infomation the rate charged for natural gas and
natural gas service in all the above towns is the same. We therefore,
filed simultaneous requests with all tOWM. To date 40 of the above
towns have approved our request for the increase in rates. We sincerely
ask the approval of the City Commission of Lubbock.
During the past five years, that is the years of 1946, 1947,
1948, 1949 and 1950, practically all the tolms served by West Texas Gas
Company have experienced considerable growth, some more rapid than others.
It has been necessary during this period for us t o increase the capacity
0
of our transmission lines, secure additional sources of supply and increase
the capacity of our distribution plants. It has also been necessary to
install a lot of new lines in each of our distribution plants for customer
service. During this five year period., we have increased the investment
in Lubbock City Plant $1,003.,000. and have increased our system wide
investment $6,708,000. We are continuing with our expansion program as
is evidenced with the actual construction of 26t miles of 10 3/4 inch
loop line in the immediate vicinity of Lubbock.
During this same period, the price we pay for gas in the field
or points of delivery to our transmission system has increased from an
average of 4. 27 cents per MCF to 9. 2.3 cents per MCF. our costs of trans-
porting and distributing this gas have steadily increased because of the
increBBe in labor, materials, taxes and supplies necessary to our busi-
ness.
This is the first increase in the General Service Rate that the
West Texas Gas Company has ever asked for. In 1935 a reduction was made
in our General Service Rate, another was made in 1937 and still another
in 1940. The present rate has been in force since 1940.
The return on our investment has been dropping the last several
years until it is below 4%. The proposed rate will allow us to earn a
return of approximately 5. 45% on our inves'bnent which is still under the
rate of return generally allowed public utilities.
We will appreciate very much your early approval. of our request.
Yours very truly.,
~Y.~
President
. ... -. .... ... . .
~iled with
~i ty Secreta ry
Juljr 26, 1951.
8
C. I, WALL
P,_CBIDCNT P, 1:1, DRAWER 1121
LUBBOCK. TEXAS
July 24, 1951
Mayor and City Commission
of Lubbock, Texas
Gentlemen:
Under date of July 2, 1951, we submitted to you a
proposed General Service Rate schedule to replace our present
General Service Rate schedule covering the sale of natural
gas and natural gas service in your city, such proposed rate
being as follows:
First
Next
Next
Next
Next
Next
All Over
2,000 Cu. Ft. per Month ® 62~¢ per M. Cu. Ft.
8,000 cu. Ft. per Month @ 55¢ perM. cu. Ft.
40,000 cu. Ft. per Month @ 50¢ per M. cu. Ft.
50,000 cu. Ft. per Month @ 45¢ per M. cu. Ft.
200,000 Cu. Ft. per Month @ 35¢ per M. cu. Ft.
200,000 Cu. Ft. per Month @ 30¢ perM. cu. Ft. 5oo,ooo cu. Ft. per Month ® 25¢ perM. cu. Ft.
Minimum Bill $1.25 per Month
Additional Charge -One-ninth (1/9) of bill will be
added if not paid within ten days after date rendered.
The folder presented to you at that time contained
certain infonnation which we deemed pertinent, showing the
necessity for the increase of rates resulting from the in-
creased costs of material, labor, taxes, gas purchased for
resale, etc.
We respectfully request that the above and foregoing
proposed rate be approved by your city to be effective with
meter readings on and after September 1, 1951.
Respectfully submitted,
tVEST TEXAS GAS COMPANY .
By ~_:2~
Presia>ent