HomeMy WebLinkAboutOrdinance - 7804-1979 - Prescribing Rates Applicable To The Sale Of Natural Gas Service. - 02/08/1979DGV:hw ORDINANCE NO. 7804 --------
AN ORDINANCE DEFINING AND PRESCRIBING THE RATES APPLICABLE TO THE SALE OF
N¾!URAL' GAS AND NATURAL GAS SERVICE BY PIONEER NATURAL GAS COMPANY TO CERTAIN
OF ITS CUSTOMERS WHO USE NATURAL GAS WITHIN THE CITY LIMITS OF LUBBOCK, TEXAS;
PROVIDING FOR MONTHLY ADJUSTMENTS, TO THE NEAREST .Olt, IN SUCH RATES, IN
ACCORDANCE WITH INCREASES OR DECREASES IN THE AVERAGE MONTHLY COST TO PIONEER
OF GAS PURCHASED FOR ITS WEST TEXAS TRANSMISSION SYSTEM; PLACING CERTAIN LIMITS
ON THE MAXI~fiJM AMOUNT OF SAID MONTHLY ADJUSTMENTS; DEFINING COST OF GAS; ESTAB-
LISHING AN EFFECTIVE DATE; AND CONTAINING A SAVINGS AND SEVERABILITY CLAUSE.
WHEREAS, heretofore, on August 10, 1978, Pioneer Natural Gas Company, a
division of Pioneer Corporation, submltted a Statement of Intent to the govern-
ing body of the City of Lubbock, Texas, proposing a schedule of rates to cover
the sale of natural gas and natural gas service by Pioneer Natural Gas Company
to certain of its customers who use natural gas within the City Limits of
Lubbock, Texas; and
WHEREAS, said application has been considered by the governing body of the
City of Lubbock, Texas, and it is the opinion of the governing body that the
proposed schedule of rates, as amended, for the sale of natural gas and natural
gas service by Pioneer Natural Gas Company is just and reasonable, and should
be approved; NOW, THEREFORE:
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1. THAT Pioneer Natural Gas Company, its successors and
assigns, may make charges under its General Service, Small Industrial, and
Large Gas Air Conditioning And/Or Electric Generating Gas Rates for the sale
of natural gas and natural gas service to its customers who use natural gas
within the City of Lubbock, Texas, as follows:
GENERAL SERVICE
Monthly Rate: Net ·
First l Mcf or less per month $4.000
Next 3 Mcf per month
Next 6 Mcf per month
All Over 10 Mcf per month
Monthly Rate:
First 50 Mcf per month
Next 50 Mcf per month
All Over 100 Mcf per month
Minimum Monthly Bill:
$2.4094 per Mcf
$2.2481 per Mcf
$2.1487 per Mcf
SMALL INDUSTRIAL RATE
$25.00 -Net
Net
$2.0774 per Mcf
$1. 9638 per Mcf
$1. 8605 per Mcf
Gross
$4.4444
$2.6771 per Mcf
$2.4979 per Mcf
$2.3874 per Mcf
Gross
$2.3082 per Mcf
$2.1820 per Mcf
$2.0672 per Mcf
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3 •. Amounts paid for delivery of gas into Pioneer's West Texas System
in situations where the supplier cannot make.delivery into Pioneer's
lines thus reflicting the cost of gas at the initial point of delivery
into Pioneer's West Texas System.
4. Amortization over a 5-year period of funds advanced for gas supply
development which is nonproductive.
The portion of any adjustment increase authorized by this Section, which is
attributable to items number 2 and number 4 described above, shall never exceed
a combined total of 1-1/2 t per Mcf per month.
B.
By March 1 of each year Pioneer Natural Gas. Company shall furnish the City
with the detail of gas purchased for its West Texas Transmission System during
the previous calendar year as filed with the Railroad Commission of Texas. The
City may, as it deems desirable, examine the books and records of Pioneer
Natural Gas Company and make audits to determine the accuracy of the cost of
gas purchased by Pioneer Natural Gas Company for its West Texas Transmission
System.
SECTION 3. THAT the rates and adjustments thereto prescribed herein
are effective for gas delivered on or after the 15th day of February, 1979, and
Pioneer Natural Gas Company shall file with the City, on or before said date:
(1) a written acceptance of said rates and adjustments in lieu of those accom-
panying its August 10, 1978, Statement of Intent; and (2) schedules or tariffs
setting forth such rates and adjustments.
SECTION 4. THAT if any section, subsection, sentence, clause or phrase
of this Ordinance is, for any reason, held to be unconstitutional or invalid,
such holding shall not affect the validity of the remaining portions of this
Ordinance. The governing body of the City of Lubbock, Texas, hereby declares
that it would have passed this Ordinance and each section, subsection, sentence,
clause or phrase hereof irrespective of the fact that any one or more sections,
subsections, sentences, clauses, or phrases be declared unconstitutional or
invalid.
SECTION 5. THAT the "cost of gas adjustment" authorized by this Ordinance
shall in nowise be construed as an abrogation or waiver (by contract or other-
wise) of the rate making powers and prerogatives of the City of Lubbock, Texas,
granted by charter, statutes, or franchise provisions.
SECTION 6. THAT the City Rate Analyst review the method of allocation
on the part of the total revenue deficit which is to be paid by the City of
Lubbock to determine if such allocation is fair and equitable.
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. .. LARGE GAS AIR CONDITIONING AND/OR
ELECTRIC GENERATING GAS RATE*
Monthly Rate; Net Gross
All gas used per month
Minimum Monthly Bill: $100.00 -Net
$1.8021 per Mcf $2.0023 per Mcf
*Does not apply to Municipally-owned power plants.
SECTION 2. THAT the rates set forth in Section One hereof to be
charged by Pioneer Natural Gas Company for the sale of natural gas and natural
gas service in the City of Lubbock, Texas, shall be adjusted in the following
manner:
Each month Pioneer Natural Gas Company shall notify the City of the average
cost of gas per Mcf at 13.6 psia for its West Texas Transmission System
during the previous month. Said notice shall be filed with the City Secretary,
with additional copies of such notice to be sent to such City officials as may
be requested, The cost of gas shown in such notice shall be broken down into
the four classifications hereinafter described. Unless the City notifies
Pioneer Natural Gas Company within 10 days of receipt of said notice that it
does not accept such notice of cost as being correct (and the City reserves
complete discretion to accept or reject such notice of cost for any reason),
the rates per Mcf to be charged by Pioneer Natural Gas Company for all bills
rendered on or after the first day of the month following expiration of the
said 10-day period shall be adjusted up or down to the nearest .Olt by which
the average monthly cost of gas to Pioneer Natural Gas Company for its West
Texas Transmission System is more than or less than 141.41/ per Mcf at 13.6
psia (152.33/ per Mcf at 14.65 psia), subject to the following provisions:
A.
For the purpose of determining the cost of gas and the cost of gas ad-
justments applicable above, the term "average cost of gas" is the total of the
following amounts divided by the volume of gas:
1. Amounts paid for the volumes purchased at wellheads, at field lines,
at gasoline plant outlets and at transmission lines under the provisions
of the applicable contracts' involved including recoupment or amortization
of prepayments. It also includes volumes in excess of receipts under
gas exchange agreements and storage gas withdrawals in excess of injections
during the period at the applicable costs.
2. Interest charged at the prime rate in effect on the first day of
each month or the actural rate, whichever is less, upon funds advanced
for gas development or dedicated volumes based upon the outstanding por-
tion of such advancements.
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SECTION 7. THAT if the City Rate Analyst finds that the method of
allocation in question is not fair and equitable, he is to file his finding
with the City Council which will thereupon take appropriate action authorized
by law which action may include a new rate hearing to consider an accounting
and refund order.
AND IT IS SO ORDERED.
Passed by the City Council on first reading this 2nd day of February, 1979.
Passed by the City Council on second reading this..8.t.b_day o~_._,......, ....... '-L+-' 1979.
APPROVED AS TO FORM:
Attorney