HomeMy WebLinkAboutResolution - 993 - Set Rates - Energas - Natural Gas Sales - 12/10/1981IJCR: cl
RESOLUTION 993 - 12/10/81
ORDER NO.
AN ORDER DEFINING AND PRESCRIBING THE RATES APPLICABLE TO THE SALE OF
'NATURAL GAS BY ENERGAS COMPANY TO CERTAIN OF ITS CUSTOMERS WHO USE NATURAL GAS
WITHIN THE CITY LIMITS OF LUBBOCK, TEXAS: PROVIDING FOR MONTHLY ADJUSTMENTS, TO
THE NEAREST .01¢, IN SUCH RATES, IN ACCORDANCE WITH INCREASES OR DECREASES IN
THE AVERAGE MONTHLY COST OF GAS TO ENERGAS COMPANY TOGETHER WITH ASSOCIATED
CHANGES IN REVENUE TAXES AND LOST GAS EXPENSES; DEFINING COST OF GAS; PROVIDING
FOR THE IMPLEMENTATION OF SUCH MONTHLY ADJUSTMENTS; ESTABLISHING AN EFFECTIVE
.DATE; AND CONTAINING A SAVINGS AND SEVERABILITY CLAUSE.
WHEREAS, heretofore, on July 31, 1981, Energas Company, a division of
Pioneer Corporation and successor to Pioneer Natural Gas Company, submitted a
Statement of Intent to the governing body of the City of Lubbock, Texas, pro-
posing a schedule of rates to cover the sale of natural gas by Energas Company
to certain of its customers who use natural gas within the City Limits of
Lubbock; 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 hereinafter amended, for the sale of natural gas
and natural gas service by Energas Company is just and reasonable, and should
be approved;
NOW THEREFORE the Governing Body of the City of Lubbock in sessions as a
Regulatory Authority does hereby enter the following Order:
SECTION ONE. That Energas Company, its successors and assigns, may make
charges under its General Service, Small Industrial, and Large Gas Air Condi-
tioning and/or Electric Generating Gas Rates for the sale of natural gas to its
customers who use natural gas within the City of Lubbock, Texas, as follows:
Monthly Rate:
Minimum Monthly Bill
First 1 Mcf per month
Next 3 Mcf per month
Next 6 Mcf per month
GENERAL SERVICE RATE
Net
$4.42
$5.4684
$3.7112 per Mcf
$3.5329 per Mcf
!All Over 10 Mcf per month $3.4249 per Mcf
I
SMALL INDUSTRIAL RATE
!Monthly Rate: Net
First 50 Mcf per month $3.4627 per Mcf
Gross
$4.91
$6.0760
$4.1236 per Mcf
$3.9254 per Mcf
$3.8054 per Mcf
Gross
$3.8474 per Mcf
Next 50 Mcf per month $3.3327 per Mcf $3.7030 per Mcf
All Over 100 Mcf per month $3.2147 per Mcf
Minimum Monthly Bill: $28.60 net
LARGE GAS .AIR CONDITIONING AND/OR
ELECTRIC GENERATING GAS SERVICE RATE*
FMonthly Rate: Net
I
;Gas used per month $3.1479 per Mcf
Minimum Monthly Bill: $114.40 - net
$3.5719 per Mcf
Gross
$3.4977 per Mcf
*Does not apply to Municipally -owned power plants or electric utilities.
l SECTION TWO. That the rates set forth in Section One hereof to be charged
fby Energas Company for the sale of natural gas in the City of Lubbock shall be
subject to monthly adjustment to the nearest .01J for (1.) changes in the
weighted average cost of gas to Energas Company above or below 236.37¢ per Mcf
lat 13.6 psia and (2.) changes in revenue taxes and lost gas expense associated
jwith such changes in weighted average cost of gas.
SECTION THREE. That "weighted average cost of gas" or "cost of gas" shall
be defined as the cost of gas for Westar Transmission Company's West Texas
Transmission System, which shall be the total of the following amounts divided
by the volume of gas:
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 of amortization of
prepayments. It also includes volumes obtained in excess of receipts
under gas exchange agreements and storage gas withdrawals in excess of
injections during the period at the applicable costs and amounts paid for
delivery of gas into Westar's West Texas Transmisdion System in situations
where the supplier cannot make delivery into such system thus reflecting
the cost of gas at the initial point of delivery into Westar's West Texas
Transmission System.
SECTION FOUR. That the adjustments described in Section Two of this ordi-
nance shall be implemented in the following manner:
1. 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.
2. 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
Correcting Account shall be kept to a minimum at all times and shall
be audited by Arthur Young and Company on a quarterly basis. More-
over, 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.
3. A factor of 1.095407 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 hereafter increased, Energas Company shall be entitled to adjust
the aforesaid factor accordingly.
SECTION FIVE. If requested by the City, Energas Company shall, by March 1
of each year, furnish the City with the detail of gas purchased by Westar
Transmission Company 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 books and records and make audits to determine the
accuracy of the cost of gas purchased.
SECTION SIX. That the rates and adjustments thereto prescribed herein are
effective for bills rendered on or after the 15th day of December, 1981, and
Energas Company shall file with the City, on or before said date: (1.) a
written acceptance of said rates and adjustments in lieu of those accompanying
its July 31, 1981 Statement of Intent; and (2.) schedules or tariffs setting
forth such rates and adjustments.
SECTION SEVEN. That if any section, subsection, sentence, clause or
phrase of this Order is, for any reason, held to be unconstitutional or invalid,
such holding shall not affect the validity of the remaining portions of this
Order. The governing body of the City of Lubbock hereby declares that it would
have passed this Order 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 EIGHT. That the rate adjustments authorized by this Order shall
in nowise be construed as an abrogation or waiver (by contract or otherwise) of
the rate making powers and prerogatives of the City of Lubbock granted by
charter, statutes, or franchise provisions.
The above and foregoing Order was duly proposed, .read in full and adopted
on theInrday of no^Qmt,er , A.D., 1981; by the following vote:
Councilmen voting."AYE": Mayor AAl'st r Ma or ppr Tem. e r counc 1 -
Councilmen voting "NAY": man. fact fro nd �ou iy $ Joan �aker
None .0
Council M. J. Adertan absent. _"., f 4
ATTEST: UUr mcAmsTER, MAYOR
Evelyn Ga fga, City r ary-Treasurer
APPROVED AS TO FORM:
AA
John C. Ross, Jr., City Attorney
1I
Correcting Account shall be kept to a minimum at all times and shall
be audited by Arthur Young and Company on a quarterly basis. More-
over, 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.
3. A factor of 1.095407 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 hereafter increased, Energas Company shall be entitled to adjust
the aforesaid factor accordingly.
SECTION FIVE. If requested by the City, Energas Company shall, by March 1
of each year, furnish the City with the detail of gas purchased by Westar
Transmission Company 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 books and records and make audits to determine the
accuracy of the cost of gas purchased.
SECTION SIX. That the rates and adjustments thereto prescribed herein are
effective for bills rendered on or after the 15th day of December, 1981, and
Energas Company shall file with the City, on or before said date: (1.) a
written acceptance of said rates and adjustments in lieu of those accompanying
its July 31, 1981 Statement of Intent; and (2.) schedules or tariffs setting
forth such rates and adjustments.
SECTION SEVEN. That if any section, subsection, sentence, clause or
phrase of this Order is, for any reason, held to be unconstitutional or invalid,
such holding shall not affect the validity of the remaining portions of this
Order. The governing body of the City of Lubbock hereby declares that it would
have passed this Order 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 EIGHT. That the rate adjustments authorized by this Order shall
in nowise be construed as an abrogation or waiver (by contract or otherwise) of
the rate making powers and prerogatives of the City of Lubbock granted by
charter, statutes, or franchise provisions.
The above and foregoing Order was duly proposed, .read in full and adopted
on theInrday of no^Qmt,er , A.D., 1981; by the following vote:
Councilmen voting."AYE": Mayor AAl'st r Ma or ppr Tem. e r counc 1 -
Councilmen voting "NAY": man. fact fro nd �ou iy $ Joan �aker
None .0
Council M. J. Adertan absent. _"., f 4
ATTEST: UUr mcAmsTER, MAYOR
Evelyn Ga fga, City r ary-Treasurer
APPROVED AS TO FORM:
AA
John C. Ross, Jr., City Attorney
JCR/cl
DRSVIT TTTTf)M
RESOLUTION 993 - 12/10/81
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock -BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock an Order defining
and prescribing the rates applicable to the sale of natural gas by Energas
Company to certain of its customers who use natural gas within the City limits
of Lubbock, Texas, attached herewith which shall be spread upon the minutes of
the Council and as spread upon the minutes of this Council shall constitute and
be a part of this Resolution as if fully copied herein in detail.
Passed by the City Council this 10th day of December ,1981.
ATTEST:
E elyn Gaf ga, City Secre y -Treasurer
APPROVED AS TO FORM:
John C. Ross, Jr., City Attorney
ILL McALI TER, MAYOR