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HomeMy WebLinkAboutResolution - 5204 - Suspend Implementation Of Proposed Gas Rate Change - Public Hearing 07/25/1996 - 06/24/1996RESOLUTION N0.5204 June 24, 1996 Item #28 RESOLUTION AND ORDER WHEREAS, a Statement of Intent to increase rates within the City of Lubbock was filed May 31, 1996, 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 provisions of Vernon's Ann.Civ.St., Art. 1446e, 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 5.08 of the Gas Utility Regulatory Act 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 13th Street, at 10:30 A.M. on the 25th day of July, 1996, 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. aM VED AS TO CONTENT: osqueda, aging Director j of Management Services APP VED AS TO ORM: Anita E. Burgess, City Attorney AEB:dalccdocs/energas.res June 14, 1996 ity Cot�x ll thi�� of VID R. LANGSTON, YOR RECEIPT ACKNOWLEDGEMENT On behalf of the City of i_ w-6�P o c -k , I acknowledge the filing on May 31, 1996, by Energas Company of the Statement of Intent to change gas rates. Nam of City It resentative 5.3[ Title I confirm that the filing was received on May 31, 1996, by the above named city representative. Name o1117rgas Representee c S —rP— C,T vt,tA 1•� ,� C � Title Energas compativ Lee Allen Everett ENERCAS Vice President P. fl. Box 650205 Rates And Regulatory Affairs DalLs, Texas 75265-0205 214-934-9227 May 31, 1996 To the Honorable Mayor and City Council: Accompanying this letter is a Statement of Intent by Energas Company to increase its charges for gas service effective July 5, 1996. This is expected to increase Energas' annual revenues by approximately 7.6%. The last general rate change by Energas was in 1994. Energas Company believes that a West Texas Steering Committee maybe formed to review the rate proposal and suggest a response to interested cities. Energas intends to fully cooperate with the committee and its review of the rate proposal. In the event your city chooses to not participate in the Steering Committee approach, Energas respectfully requests an opportunity for a public hearing before any final action is taken. Please notify me of the time and place of the Hearing. Energas is making an identical filing with each of the other 66 cities which comprise our West Texas service area. Discussions with those cities may lead to a change in this proposal. Please let me or your local Energas manager know if you would like information on the status of those filings. Energas continues to be dedicated to providing reliable, safe gas service to all of its customers. The proposed increase is being requested so that we may sustain that quality of service. Please do not hesitate to call me or your local Energas Manager if you have any questions about this proposal. Thank you. Sincerely, Lee Allen Everett Attorney for Energas LAE:db Enclosures STATEMENT OF INTENT ) OF ENERGAS COMPANY ) TO CHANGE GAS RATES ) IN Lubbock, TEXAS TATEMENT OF INTENT Energas Company, a "gas utility" as defined by S 1.03 (3) of Tex. Rev. Civ. Stat. Ann. Article 1446e (The Gas Utility Regulatory Act or "GURA"), hereby states its intent to implement the revised gas tariffs, attached hereto as Exhibit A and incorporated herein by reference, to be effective on July 5, 1995, for gas service in Lubbock, Texas (herein- after the "City"). Energas further proposes to later substitute the rates displayed in Exhibit B, incorporated herein by reference. The Exhibit A and Exhibit B rates are revenue equivalent, but the Exhibit B Rates are structured to collect local and state revenue taxes (other than sales tax) as a separate line item through application of a revenue tax rider. Energas will implement the Exhibit B rates following programming modifications to its billing system, but no sooner than January 1, 1997. The proposed revisions in the Energas tariffs are displayed in Exhibits A and B in bold italic type. Proposed Changes Energas Company proposes to eliminate the current net/gross rate structure where the gross (late payment) rates are 5% higher than the net (prompt payment) rates. The proposed rates (other than General Service -State Institutions) are designed so that the commodity ("MCF" or "Thousand Cubic Feet") rate approximates the current net (prompt payment) commodity rate with a higher customer charge. The new General Service -State Institutions rate is designed to comply with new section 5.061 of GURA which prohibits collection of gross receipts type taxes from state agency accounts. The following display presents the proposed Exhibit A charges and indicates the increase (decrease) compared to the current net (prompt payment) and gross (late payment) rates. The Exhibit B rates are designed to produce substantially the same increases (decreases) as the Exhibit A rates when compared to the current Energas net and gross rates. Gas Rate Class General Service Monthly Customer Charge 1-4 MCF 5-10 MCF 11-50 MCF Over 50 MCF Prosed Charge Increase(Decrease) to Present Net/Gross Rates $8.87 $3.58 /$3.30 3.75/MCF 0.0006 /(0.1966) 3.71/MCF 0.0033 /(0.1917) 3.68/MCF (0.0017)/(0.1954) 3.65/MCF 0.0033 /(0.1885) General Service -State Institutions (New) Monthly Customer Charge $8.46 $3.17 /$2.89 1-4 MCF 3.56/MCF (0.1894)/(0.3866) 5-10 MCF 3.52/MCF (0.1867)/(0.3817) 11-50 MCF 3.50/MCF (0.1817)/(0.3754) Over 50 MCF 3.47/MCF (0.1767)/(0.3685) Small Industrial 1-2 MCF 3.75/MCF Monthly Customer Charge $32.03 $4.74 /$3.30 1-50 MCF 3.40/MCF 0.0019 /(0.1768) 51-100 MCF 3.34/MCF 0.0019 /(0.1737) Over 100 MCF 3.30/MCF 0.0019 /(0.1716) Large A/C -Electric Generating Monthly Minimum Bill $118.00 $0.00 /($6.00) All Gas 3.30/MCF 0.0019 / (0.1716) GS Residential A/C Rate Monthly Customer Charge $8.87 $3.58 /$3.30 1-2 MCF 3.75/MCF 0.0006 /(0.1966) Over 2 MCF 3.30/MCF 0.0019 /(0.1716) Base Cost of Gas $2.68 $0.0021 /$0.0021 Expected Revenue Effect .and Affected Customers The proposed changes will affect all residential, commercial, public authority, small industrial and air conditioning customers who elect service under the Company's present West Texas tariffs. There are approximately 60,886 such utility consumers in the City. The impact on. an individual gas customer will vary depending upon usage, but can be determined by applying the increase (decrease) parameters in the previous section to the customer's consumption levels. For example, general service customers with 6 MCF consumption would be charged $3.57 more compared to the current net rates or $2.11 more compared to the current gross rates calculated as follows: Difference to Net Customer charge $3.58 First 4 MCF @ $0.0006/MCF - 0.00 Next 2 MCF @ $0.0033/MCF - 0.01 Expected increase per bill Difference to Gross $3.30 @ $(0.1966) - (0.79) @ $(0.1917) - 10.281 $213 The proposed changes are expected to increase the Company's annual revenues in the City by approximately $2,301,491. Public Notice Energas Company will promptly undertake effecting notice to the public of this proposed rate change by publication in newspapers of general circulation in the affected area once each week for four (4) successive weeks. The Proposed Increase_ is a Major Change The proposed increase in gas rates and related service charges will increase the aggregate revenues of the Applicant by more than the greater of $100,000 or 2 1/2% and, therefore, is a "Major Change" as defined by GURA S 5.08(b). Statement of Supporting Facts Energas Company has done a good job of controlling increases of its reasonable and necessary expenses related to the provision of gas service to the public since its rates were last adjusted in 1994. However, Energas has made substantial increased investment in utility plant and capital used and useful in rendering service to the public since that time. The current gas rates do not provide a reasonable opportunity for Energas Company to earn a reasonable return on its invested capital used and useful in rendering service to the public over and above reasonable and necessary operating expenses. Energas Company is involved in an ongoing program of investment in gas utility assets to provide safe, reliable service to the public. The proposed changes in rates are necessary to maintain the Company's financial integrity so that it may continue to attract the necessary capital at reasonable terms. Applicant Representative Notices and other communications related to this proposal should be directed to: Energas Company Attn: Lee Allen Everett Vice President Rates & Regulatory Affairs P.O. Box 650205 Dallas, Texas 75265-0205 (214) 788-3719 (214) 788-3712 (Fax) Relief Requested Wherefore, premises considered, Energas Company respectfully requests that the gas rates proposed herein be allowed to take effect without delay. Energas Company reserves the right, as a lesser included alternative request herein, to implement, no sooner than the effective date proposed herein, a lesser or different rate change that could be expected to produce revenue not in excess of that noticed herein. Respectfully submitted, Energas Company by its Attorney Lee Allen Everett State Bar ID #06742700 FILED WITH THE CITY ON MAY 31, 1996. Exhibit A Page 3 of 8 For: Entire Service Area Second Revised Sheet No. 3 Cancelling First Revised Sheet No. 3 ENERGAS COMPANY p lncorporatea ana unincorporated Cities Served Incorporated Cities (72) West Texas Service Area (67) Abernathy Lamesa Post Amherst Levelland Quitaq ue Anton Littlefield Ralls Big Spring Lockney Ransom Canyon Bovina Lorenzo Ropesville Brownfield Los Ybanez Seagraves Buffalo Springs Lake Lubbock Seminole Canyon Meadow Shailowater Coahoma Midland Silverton Crosbyton "?Muleshoe Slaton Dimmitt Nazareth Smyer Earth New Deal Springlake Edmonson New Home Stanton Floydada -Odessa Sudan Forsan, O'Donnell 'Tahoka Friona Olton Timbercreek Canyon Hale Center Opdyke West Tulia Happy Palisades Turkey Hart Pampa Vega Hereford - Panhandle Wellman Idalou Petersburg Wilson Kress Plainview Wolfforth Lake Tanglewood Fritch/Sanford Service Area (2) Dalhart Service Area (2) Fritch Dalhart Sanford - -Channing Amarillo Service Area (1) Amarillo Uninco ora ted Communities (4) Hartley ' Southland " Witharral Welch " ' Included in Dalhart Service Area '' Included in West Texas Service Area ISSUED ON: Afay 31, 1996 ISSUED BY: Lee Allen Everett, Vice President — Rates & Regulatory Affairs ENERGAS COMPANY West Texas Service Area GENERAL SERVICE RA AVAILABILITY Exhibit A, Page 2 of 8 Rate Code 502 Third Revised Page No. 051 Cancelling Second Revised Page No, 051 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 (a) Customer Charge $8.87 (b) Commodity Charge:. First 4 Mcf per Month C $3.75/Mcf Nem b Mcf per Month C $3.71 / Mcf Next 40 Mcf per Month C $3.68 / Mcf All Over 50 Mcf per Month C $3.65 / Mcf (c) The West Texas Gas Cost Rider applies to this schedule. Mcf/ tbousand cubic feet: If billed in terms of Ccf/hundred cubic feet, the Ccf unit rate will be 1/10 th of the Mcf unit rate. EFia ECI'IVE: For Service Inside City Limits — Bills rendered on and after July S, 195 6. ISSUED BY: Lee Allen Everett, Vice President — Rates & Regulatory Affairs Exhibit A, Page 3 of 8 Rate Code 511 Original Page No. 051(A) ENERGAS COMPANY West Texas Service Area GENERAL SERVICE — STATE INSTITUTIONS RATE FLI.•1/A�:11 M TTiis schedule is applicable to gas service to state agencies ( as provided in Ter Rev. Civ. Stat. Ann. Article 1446e Section 5.061 ) including, but not limited to, colleges, universities, MILIWR Schools, agriculture, highway and public safety departments, prisons, and other facilities owned or operated by the State of Texas for the purposes of heating, cooking, refrigeration, water heating and other similar type uses. TERRITOR Y West Teras Service Area Only MONTHLY RATE (a) Customer Charge 58.46 (b) Commodity Charge: First 4 Mef per Month @ $356 / Mcf " Next 6 Mcf per Month Ca) $352 / Mcf Nest 40 Mcf per Month @ $'3.50 / Mcf All Over 50 Mcf per Month @ $3.47/ Mcf (c) The West Texas Gas Cost Rider applies to this schedule. ' Mcf/ thousand cubic feet: If billed in terms of Ccf/hundred cubic feet, the Ccf unit rate will be 1/10 th of the Mcf unit rate. EFFECITVE: For Service Inside City Limits — BffJs rendered on and after July S, 1996_ ISSUED BY Lee Allen Everett, Vice President — Rates & Regulatory Affairs Exhibit A, Page 4 of 8 Rate Code 541 Third Revised Page No. 052 Cancelling Second Revised Page No. 052 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 (a) Customer Charge 532.03 (b) Commodity Charge: First 50 Mcf per Month C $3.40 f Mcf' Next 50 Mcf per Month C $334 / Mef All Over 100 Mcf per Month C $3.30 / Mcf (c) The West Texas Gas Cost Rider applies to this schedule. s Mcf/ thousand cubic feet. If billed in terms of C.cf/ hundred cubic feet, the Ccf unit rate will be 1/70 th of the Mcf unit rate. EFFECTIVE: For Service Inside City Limits — Bills rendered on and after July S, 1996. ISSUED BY: Lee Allen Everett, Vice President — Rates & Regulatory Affairs ENERGAS COMPANY West Texas Service Area AVAILABILITY Exhibit A, Page 5 of 8 Rate Code 580 Second Revised Page No. 053 Cancelling First Revised Page No. 053 LARGE GAS AIR CONDITIONING AND/OR ELECTRIC GENERATING GAS SERVICE 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 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 Only MONTHLY RATE The monthly bills shall be computed at the following rate: Gas Used per Month $330 /Mcf • Minimum Monthly Bill $118.00 The West Texas Gas Cost Rider applies to this schedule. Mcf/ thousand cubic feet. if billed in terms of Ccf/hundred cubic feet, the Ccf unit rate will be 1/10 th of the Mcf unit rate. EFFECTIVE: For Service Inside City Limits — Bills rendered on and after July 5, 1996. ISSUED BY: Lee Allen Everett, Vice President — Rates & Regulatory Affairs Exhibit A, Page 6 of 8 For: West Texas Service_ Area First Revised Page No. 55 Cancelling Original Page No. 55 ENERGAS COMPANY West Texas Service Area AIR CONDITIONING RATE RIDER AVAILABILITY 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 May through September. During the months of October through April the customer's applicable rate schedule shall apply. When gas service for non—residential 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 May through September less any gas consumed 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. TERRITORY West Texas Service Area MONTHLY RATE (a) Customer Charge: General Service Rate Small Industrial Rate $8.87 $32.03 (b) Commodity Charge: Residential First 2 Mcf per Month @ $3.75 /Mcf All Over 2 Mcf per Month @ $330 /Mcf EFFECTIVE: For Service Inside City Limits — Bios rendered on and after July S, 1946. ISSUED BY: Lee A. Everett, Vice President — Rates & Regulatory Affairs Exhibit A. Page 7 of 8 For: West Texas Service Area First Revised Page No. 56 Cancelling Original Page No. 56 ENERGAS COMPANY West Texas Service Area AIR CONDITIONING RATE RIDER MONTHLY RATE (continued) Non—Residential, With Separate Metering of Air Conditioning Equipment All Mcf per Month Co, Non—Residential, Without Separate Metering of Air Conditioning Equipment Base Load per Mcf per Month C All Mcf over Base Load per month lei (c) The West Texas Gas Cost Rider applies to this schedule. x'3.30 !Mcf * * * "Mcf 53.30 /Mcf + Mcf/ thousand cubic feet: If billed in terms of Ccf/ hundred cubic feet, the Ccf unit rate will be 1/10 th of the Mcf unit rate. * * Raters per applicable General Service or Small Industrial Rate Schedules. EFFECTIVE For Service Inside City Limits — Bills rendered on gad after July 5, 1996. ISSUED BY: Lee A. Everett, Vice President — Rates & Regulatory Affairs Exhibit A, Page 8 of 8 For: West Texas Service Area Second Revised Page No. 58 Cancelling First Revised Page No, 58 ENERGAS COMPANY West Texas System GAS COST ADJUSTMENT —ICL APPLICATION Gas bilis issued under rate schedules to which this Rider applies will include adjustments to reflect decreases or increases in purchased gas costs ortaxesfrom the base level ofthose 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 ollows: GAS COST ADJUSTMENT (GCA) The GCA to be applied to each Mcf billed shall be computed as follows and rounded to the nearest $0.01: 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 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 while the Company will absorb the excess. 4. 'BASE", in $/Mcf at 13.6 psia, is the base cost of gas of $2.68 / Mcf that is included in base rate. 5. 'TF' is a tax factor of 1.©526. EFFECTIVE: For Service Inside City Limits —Bills rendered on and after July S, 1996. ISSUED BY: i_ee Allen Everett, Vice President — Rates & Regulatory Affairs Exhibit B, Page 1 of 7 Rate Code 502 Fourth Revised Page No. 051 Cancelling Third Revised Page No. 051 ENERGAS COMPANY West Texas Service Area GENERAL SERVICE RATE This schedule is applicable to general use by domestic and commercial type customers including schools, hospitals and churches for heating, cooping, 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 (a) Customer Charge $8.46 (b) Commodity Charge: First 4 Mcf per Month C 53.56/Mcf Next 6 Mcf per Month C $3..52 / Mcf Next 40 Mcf per Month Ca $3.50/Mcf All Over 50 Mcf per Month Ca, $3.47 / Mcf (c) The West Texas Gas Cost and Revenue Tax Riders apply to this schedule. * Mcf /thousand cubic feet: If billed in terms of Ccf /hundred cubic feet, the Ccf unit rate will be 1/10 th of the Mcf unit rate. EFFECTIVE: For service inside city limits —no earlier than January 1, 1997 ISSUED BY: Lee A11en Everett, Vice President — Rates & Regulatory .Affairs Exhibit B, Page 2 of 7 Rate Code 541 Fourth Revised Page No. 052 Cancelling Third Revised Page No. 052 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 altemative supply of natural gas. TERRITORY West Texas Service Area Only MONTHLY RATE (a) Customer Charge $30.45 (b) Commodity Charge: First 50 Mcf per Month C $3.23 / Mcf Next 50 Mcf per Month C- $3.17 Mcf All Over 100 Mcf per Month C, $3.14 / Mcf (c) The West Texas Gas Cost and Revenue Tar Riders apply to this schedule. Mcf/ thousand cubic feet. If billed is terms of Ccf/hundred cubic feet, the Ccf unit rate will be 1/10 th of the Mcf unit rate. EFFEMVE_ For service inside city limits —no earlier than January 1, 1997 ISSUED BY: Lee Allen Everett, Vice President — Rates & Regulatory Affairs ENERGAS COMPANY West Texas Service Area AVAILABILITY Exhibit B, Page 3 of 7 Rate Code 580 Third Revised Page No. 053 Cancelling Second Revised Page No. 053 LARGE GAS AIR CONDITIONING AND/OR ELECTRIC GENERATING GAS SERVICE 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 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 Only MONTHLY RATE The monthly bills shag be computed at the following rate: Gas Used per Month Minimum Monthly Bill $3.14 /Mcf * .118.00 The West Texas Gas Cost and Revenue Tax Riders apply to this schedule. * Mcf/ thousand cubic feet. If billed in terms of CcfI hundred cubic feet, the Cef unit rate will be 1/10 th of the Mcf unit rate. EFFECTIVE: For service inside city limits — no earlier than January 1, 1997 ISSUED BY: Lee Allen Everett, Vice President — hates & Regulatory Affairs ENERGAS COMPANY West Texas Service Area ►WuIIw:�:���l�r•� Exhibit B, Page 4 of 7 For: West Texas Service Area Second Revised Page No. 55 Cancelling First Revised Page No. 55 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 May through September. During the months of October through April the customer's applicable rate schedule shall apply. When gas service for non --residential 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 May through September less any gas consumed 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. TERRITORY West Texas Service Area MONTHLY RATE (a) Customer Charge: General Service Rate Small Industrial Rate $8.46 $30.26 (b) Commodity Charge: Residential First 2 Mcf per Month @ $3.56 / Mcf ` All Over 2 Mcf per Month C $3.14 /Mcf EFFECnVE: For service inside city limits — no earlier than January 1, 1997 ISSUED BY: Lee A. Everett, Vice President — Rates & Regulatory Affairs Exhibit B, Page 5 of 7 For: West Texas Service Area Second Revised Page No. 56 Cancelling First Page No. 56 ENERGAS COMPANY West Texas Service Area AIR CONDITIONING RATE RIDER MONTHLY RA'Z'E (continued) Non -Residential, With Separate Metering of Air Conditioning Equipment All Mcf per Month C 53.14/Mcf Non --Residential, Without Separate Metering of Air Conditioning Equipment Base Load per Mcf per Month C ** /Mcf All Mcf over Base Load per month C $3.14 /Mcf (c) The West Texas Gas Cost and Revenue Tax Riders apply to this schedule. * Mcf/ thousand cubic feet. If b171ed In terms of Ccf/ hundred cubic feet, the Ccf unit rate will be 1/10 th of the Mcf unit we. ** Rates per applicable General Service or Small Industrial Rate Schedules. EFFECTIVE: For service inside city limits - no earlier than laauary 1, 1997 ISSUED BY: Lee A. Everett, Vice President - Rates & Regulatory Affairs Exhibit B, Page 6 of 7 For: West Texas Service Area Third Revised Page No. 58 Cancelling Second Revised Page No. 58 ENERGAS COMPANY West Texas System GAS COST ADJUSTMENT — ICL APPLICATION Gas bills issued under rate schedules to which this Rider applies will include adjustments to reflect decreases or increases in purchased gas costs ortaxes 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 $0.01: GCA = G/S — BASE + CF Where: "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 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 while the Company will absorb the excess. 4. "BASE", in $/Mcf at 13.6 psia, is the base cost of gas of $2.681 Mcf that is included in base rate. EFFECI'IVE: For service inside city limits — no earlier than January 1, 1947 ISSUED BY: Lee Allen Everett, Vice: President — Rates & Regulatory Affairs Exhibit B. Page 7 of 7 For: West Texas Service Area Original Page No. 59 ENERGAS COMPANY West Texas System REVENUE TAX FACTOR - ICL APPLICATION Gas bills issued under rate schedules to which this Rider applies will include amounts reflecting all current local and state revenue taxes (other than sales taxes) applicable to or recoverable from the customer. Such revenue taxes will be computed by the application of a revenue tax factor to the appropriate amount billed to the customer. Adjustments to the revenue tax factor shall be filed with the appropriate regulatory authority before the beginning of the calendar quarter in which the tax factor will be applied to bills. The amount of each factor shall be computed as follows: REVENUE TAX FACTOR (RTF] The RTF to be applied to each dollar billed shall be computed as follows and rounded to the nearest .0001 %. RTF = CFT + SRT + ORT + ( T/(R-SA)) Where: 1. 'CFT', a percentage, is the City Franchise Tax Rate applicable to the customer. 2. 'SRT', a percentage, is the State Gross Receipts Tax Rate applicable to the customer. 3. 'ORT', a percentage, is all other local or state gross receipts type taxes (other than sales taxes) applicable to the customer. 4. 'T, in dollars, is the revenue taxes paid or payable on behalf of state institutions for the most recent 12 month period available at the time of the adjustment. 5. 'R', in dollars, is the total revenue on which revenue taxes were payable for the 12 months defined in 4 above. 6. 'SA' in dollars, is the revenue from State Agencies as defined on Page No. 051(A). EFFECTIVE: For service inside city limits - no earlier than January 1, 1997 ISSUED BY: Lee Allen Everett, Vice President - Rates 3 Regulatory Affairs From: Katherine Egger To: Bjohnson Caller: Cheryl Taylor Company: Energas Co. Phone: 798-4425 [* j Telephoned [ Will call again [ ] Wants to see you [ ] Urgent [ * I Please call [ ] Returned your call 1 Came to see you Received the fax of Resolution #5204 (regarding Energas rate request). Her people are telling her they need an original, is there any way of them getting one? I said not really, & I explained the process. I offered to her the affadavit and she wasnt sure on that. Please call her. CITY OF LUBBOCK § COUNTY OF LUBBOCK § STATE OF TERAS § AFFIDAVIT Before me, the undersigned authority, personally appeared Betty M. Johnson, who, being by me duly sworn, deposed as follows: My name is Betty M. Johnson, I am of sound mind, over 18 years of age, capable of making this affidavit, and personally acquainted with the facts herein stated: I am the custodian of the records of the City Secretary's Office for the City of Lubbock, Texas. Attached hereto is a copy of the Resolution No. 5204, Item #28 taken from the City Council's Regular Meeting on June 24, 1996, from the official records of the City of Lubbock. These records are kept by me, the City Secretary, in the regular course of business, and it was in the regular course of business of the City Secretary of the City of Lubbock, Texas or an employee or representatives of the City Secretary of the City of Lubbock, Texas, with knowledge of the act, event, condition, opinion, or diagnosis, recorded to make the record or to transmit information thereof to be included in such record; and the record was made at or near the time or reasonably soon thereafter. The records attached hereto are the original or exact duplicates of the original. 4A BEFORE ME, the undersigned authority, a Notary Public in and for said County, Texas, on this day personally appeared Betty M. Johnson, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that she executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this 2nd day of July 1996. ........... KATHERINE EGGER .° Notary Public, State of Tw= =or i r MY CWMS$Ion E*M t0� 7 ool �o�►e�A.h1,. � r Notary Public, State of Texas Commission Expires: 10/06/97