HomeMy WebLinkAboutResolution - 1853B - Define & Prescribing Rates - Energas Company - Natural Gas Service - 10/11/1984JCR:rm
ORDER
AN ORDER DEFINING AND PRESCRIBING THE RATES APPLICABLE TO THE SALE OF
NATURAL GAS SERVICE BY ENERGAS COMPANY TO ITS CUSTOMERS WHO USE NATURAL GAS
WITHIN THE CITY LIMITS OF THE CITY OF LUBBOCK,TEXAS.
WHEREAS, heretofore on July 6, 1984, Energas Company, submitted an
application to the governing body of the City of Lubbock proposing a
schedule of rates to cover the sale of natural gas and natural gas service
by Energas Company to its domestic and commercial type customers who use
natural gas within the city limits of the City of Lubbock, 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 it is the opinion of the governing body that the
rate schedule -proposed herein for the sale of natural gas and natural gas
service by Energas Company is just and reasonable, and should be approved;
NOW THEREFORE, be it ordered by the governing body of the City of
Lubbock, sitting as a regulatory authority:
1.
That Energas Company, its successors and assigns may make charges for
the sale of natural gas and natural gas service to its customers who use
natural gas within the City of Lubbock as follows:
Minimum Monthly Bill
First 1 Mcf per Month at
Next 3 Mcf per Month at
Next 6 Mcf per Month at
All over 10 Mcf per Month at
MONTHLY RATE
NET
$4.61
$6.5873
$4.7527 per Mcf
$4.5668 per Mcf
$4.4553 per Mcf
GROSS
$5.12
$7.3192
$5.2808 per Mcf
$5.0742 per Mcf
$4.9503 per Mcf
Bills rendered under the foregoing rate shall be subject to adjustment each
month to the nearest .01¢ per Mcf for (1) changes in the weighted average
cost of gas to the Company's supplier or suppliers for its West Texas
Distribution System above or below 313.40¢ per Mcf at 13.6 psia and (2)
changes in revenue taxes and lost gas expense associated with such changes
in weighted average cost of gas.
2.
That the adjustments described in SECTION ONE of this Order shall be
implemented in the following manner:
a. Prior to the end of each month Energas Company shall notify
the City of (a) the actual weighted average cost of gas for
the previous month and (b) the estimated cost of gas for the
current month, which will be used for billing purposes
beginning with bills rendered on the first day of the
following month.
b. Any over or undercollection of revenues resulting from the
estimated cost of gas billed during a month being different
from the actual weighted average cost of gas for such month
shall be placed in a Correcting Account and eliminated
through subsequent billings. The Correction Account shall
be kept to a minimum at all times and shall be audited by
Arthur Young and Company on a quarterly basis. Moreover,
Energas Company shall periodically or upon request inform
the City of the current balance in the Correcting Account
and make its records available to representatives of the
City upon request.
C. A factor of 1.091395 shall be applied to the change in cost
of gas to compensate for the associated change in revenue
taxes and lost gas expense, PROVIDED THAT the tax recovery
portion of such factor is based upon local and state tax
rates which are in effect as of the date of this Order.
Should the rate of any one or more of such taxes be here-
after increased, Energas Company shall be entitled to adjust
the aforesaid factor accordingly.
3.
If requested by the City, Energas Company shall, by March 1 of each
year, furnish the City with the detail of gas purchased for its West Texas
Distribution System during the previous calendar year as filed with the
Railroad Commission of Texas. The City may, as it deems desirable, examine
books and records and make audits to determine the accuracy of the cost of
gas purchased.
4.
The above net rate included a 10% discount for payment of bills within
15 days after issuance. For all bills paid after such period, the gross
rate will apply. The cost of gas adjustment per Mcf shown on the gas bill
is the net amount and must be converted to a gross amount for bills paid
after the due date.
-2-
0 - �*
5.
The rate prescribed herein shall become effective for all bills
rendered on and after November 1, 1984, and Energas Company shall file with
the City on or before said date (1) a written acceptance of the rates
approved herein and (2) a schedule or tariff setting forth such rates.
6.
All orders or parts of orders in conflict herewith are hereby repealed
to the extent of the conflict.
7.
This Order shall become effective upon its passage and approval.
On motion of Councilwoman Baker , seconded
by Mayor Pro Tem Carpenter , the foregoing order was passed on
first reading this the 11th day of October
A.D., 1984 by the following vote: '
Joan Baker Voted Yea E. Jack Brown Voted Yea
George Carpenter Voted Yea Bob Nash Voted--Vea
Alan Henry Voted lea _ aggie Trejo Voted --Yea
T.J. Patterson Voted Yea
PASSED AND APPROVED THIS THE 11th day of
A.D., 1984.
hanettte Boyd, City Secretary
City of Lubbock, Texas
-3-
netnhPr
City of Lubbock,