0738ORDINANCE NO. ~3b
AN ORDINANCE OF THE CITY OF SOUTI-ILAKE, TEXAS FI2qDING,
AFTER REASONABLE NOTICE AND HEARING, THAT LONE STAR GAS
COMPANY'S RATES AND CHARGES WITHIN THE CITY SHOULD BE
CHANGED; DETERMINTNG JUST AND REASONABLE RATES;
REJECTING WEATHER NORMALIZATION, PLANT INVESTMENT AND
COST OF SERVICE AUTOMATIC ADJUSTMENT CLAUSES; APPKOVING
AN ADJUSTMENT FACTOR FOR F1LadqCHISE FEES; PROVIDING FOR
RECOVERY OF KATE CASE EXPENSES; ADOPTING A MOST FAVORED
NATIONS CLAUSE; PRESERVING REGULATORY RIGHTS OF THE CITY;
ORDERING THAT THIS ORDINANCE BE SERVED ON LONE STAR GAS
COMPANY; PROVIDING FOR REPEAL OF CONFLICTING ORDINANCES.
WHEREAS, the City of Southlake ("City"), acting as a regulatory authority, has
previously suspended the effective date of Lone Star Gas Company's ("Lone Star") application
to increase rates in the City in order to study the reasonableness of that application;
WHEREAS, the City on Southlake, considered the Company's application, a report from
the City's consultants who were retained to evaluate the merits of Lone Star's application, and a
settlement agreement between the City and Lone Star in a reasonably noticed public hearing;
WHEREAS, the City has determined that the Company's rates within the City should be
changed and that the Company's application should be granted, in part, and denied, in part;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF SOUTHLAKE, TEXAS:
SECTION 1. That the existing rates and charges of Lone Star are hereby found, after
reasonable notice and hearing, to be unreasonable and shall be changed as hereinafter ordered.
The changed rates resulting from this Ordinance are hereby determined to be just and
reasonable rates to be observed and in force within the City.
SECTION 2. That it is hereby ordered that Lone Star's rates in the City be s~ on the
basis of a 2.94% increase in overall system average revenues with a 3.98% increase in system
average residential revenues and a 1.39% increase in system average commercial revenues on
the Mid-Cities Distribution System. The increase in system average revenues also includes a
$26,652 increase in other revenue (associated with service charges) over test year levels.
Revenues from the City of Southlake are authorized to change from test year levels, exclusive
of increases in service charges, in the following manner: increase $117,926 for residential
customers and decrease $l,312 for commercial customers. The residential and commercial
rates resulting from this Ordinance shall be adjusted upward or downward from a base per Mcr
city gate rate set by the Railroad Commission of Texas by a Gas Cost Adjustment Factor
authorized by the Railroad Commission of Texas.
SECTION 3. The Weather Normalization, Plant Investment and Cost of Service
automatic adjustment clauses proposed by Lone Star are unreasonable and are specifically
rejected. The Company is authorized to adjust monthly bills to include any municipal franchise
fee or street and alley assessment now or hereafter in effect in this City to the extent that such
municipal franchise fee or street and alley assessment is at a rate higher than 3% of the
Company's gross receipts.
SECTION 4. That current residential and commercial monthly customer charges of
$5.00 and $12.00 are reasonable and shall not be changed.
SECTION 5, That the miscellaneous service changes and line extension charges
reflected in Exhibit A are reasonable and are hereby approved.
SECTION 6. That approval of a most favored nations clause is reasonable and in the
public interest and Lone Star is ordered to provide residents of the City of Southlake the
benefits of any agreement or order applicable elsewhere in the Mid-Cities Distribution System.
SECTION 7. Lone Star shall file with the City, no later than the effective date of the
changed rates ordered herein, revised Tariffs and Schedules, together with rate design
workpapers and supporting data as requested, setting forth the rates, tariffs and changes based
upon the increases and changes prescribed herein. Such Tariffs and Schedules may be modified
or amended by the City Council to comply with the provisions of this Ordinance within twenty
(20) days from the date of filing with the City, otherwise the same shall be considered approved
as filed.
SECTION 8. That the fees and expenses associated with the City retaining counsel and
consultants to investigate the Company's application are reasonable and are to be paid by Lone
Star and recovered from ratepayers through a system-wide surcharge spread over a six month
period. The Company shall provide a monthly accounting to the City showing, by months, the
amount recovered through the surcharge.
SECTION 9. That the rate changes ordered herein become effective for billing on May
2, 1999.
SECTION 10. This Ordinance shall be served on Lone Star by U.S. mail to the
Company's authorized representative, Mary Jean Moloney, TU Electric/Lone Star Gas, Texas
Utilities Companies, 100 West Abram, Arlington, Texas 76010.
SECTION 11. That nothing contained in this Ordinance shall be construed now or
hereafter in limiting or modifying, in any manner, the right and power of the City under law to
regulate the rates and changes of Lone Star.
SECTION 12. All ordinances, resolutions, or parts thereof, in conflict with this
Ordinance are repealed to the extent of such conflict.
SECT[ON 13. It is hereby found and determined that ~aid meeting at which this
Ordinance wss p~d w~ open to the public, ss required by Texss law, and that advance public
notice of the time, place and purpose of said meeting was given.
A I-fI~ST: APPROVED
,1999.
EXHIBIT A
LONE STAR GAS COMPANY
MID-CITIES DISTRIBUTION SYSTEM
SCHEDULE OF SERVICE CHARGES
Connection Charge
In addition to the charges and rates set out above, the Company shall charge and collect
the sum of:
Schedule Charge
Business Hours $35.00
After Hours $52.00
For each reconnection of gas service where service has been discontinued at the same
premises for any reason, for the initial inauguration of service, and for each inauguration of
service when the billable party has changed, with the following exceptions:
(a) For a builder who uses gas temporarily during construction or for display
purposes;
Co) Whenever gas service has been temporarily interrupted because of system
outage or service work done by Company; or
(c) For any reason deemed necessary for Company operations.
B. Read For Change Charge
A read for change charge of $12.00 is made when it is necessary for a Company
employee to read the meter at a currently served location because of a change in the billable
party.
C. Returned Check Charges
A returned check handling charge of $16.25 is made for each check returned to
the Company for any reason.
D. Delinquent Notification Charge
A charge of $4.75 shall be made for each trip by a Company employee to a
customer's residence or place of business when there is an amount owed to the Company
that is past due. This charge shall not be made when the trip is required for safety
investigations or when gas service has been temporarily interrupted because of system
outage or service work done by Company.
MAIN LINE EX1 k~I'SION KATE
The charge for extending mains beyond the free limit established by Franchise for
residential, commercial, and industrial customers shall be based on the actual cost per
foot of the extension.
Star_Telegralmn FED. I.D. NO. 22-3148254
AD ORDER NO. 14957495
400 W.SEVENTH STREET•FORT WORTH,TEXAS 76102 ACCOUNT NO. CI T 5 7
THE STATE OF TEXAS
unty of Tarrant
Before me, a Notary Public in and for said County and State, this day
TAMMIE BRYANT
personally appeared Billing Specialist for the
Star-Telegram, published by the Star-Telegram Inc. at Fort Worth, in Tarrant County, Texas; and
who, after being duly sworn, did depose and say that the following clipping of an advertisement was
published in the above named paper on the following dates:
1. DATE AD ORDER NO. DESCRIPTION AD SIZE - TNCHTuNE RATE AMOUNT
4/23ME 1495749 ORDINANCE NO . 73 I358 1x 42L 42 QUOTE 34 . 02
ORDIN
AN ANCE NO.738 U4LE3-0 4/2 3
ORDINANCE OF THE CITY _. ._. _._._ ___......,_ ..... _..
OF SOUTHLAKE, TEXAS
FINDING AFTER REASON-
ABLE NOTICE AND HEAR-
ING,THAT LONE STAR GAS
COMPANY'S RATES AND
CHARGES WITHIN THE CITY
SHOULD BE CHANGED; DE-
TERMINING JUST AND REA-
SONABLE RATES' REJECT-
ING "--- - - --
WEATHER NORMALIZA-
TION, PLANT INVESTMENT
AND COST OF SERVICE AU-
TOMATIC ADJUSTMENT _...
CLAUSES' APPROVING AN
ADJUSTMENT FACTOR FOR
FRANCHISE FEES; PROVID-
ING FOR RECOVERY OF
RATE CASE EXPENSES;
ADOPTING A MOST FA-
VORED NATIONS CLAUSE;
PRESERVING REGULATORY
RIGHTS OF THE CITY; OR-
DERING THAT THIS ORDI-
NANCE BE SERVED ON S'
LONE STAR GAS COMPANY.PROVIDING REPEAL°I-
- -- -
I + CONFLICTING FOR
ORDINANC- 28th APRIL 1999
PASSED AND APPROVED ON ;WORN TO BEFORE ME, THIS THE DAY OF
THE 20th DAY OF APRIL,
1999, DURING THE REGU-
LAR CITY COUNCIL MEET-
ING. RHONDA R. GOKE r o. '� 'f, Notary Public g '��
MAYOR RICK STACY ?' •:n r�
ATTEST: COMMISSION EXPIRES
SANDRA L.LEGRAND, • i„�
.
CITY SECRETARY r •`�
APPROVED AS TO FORM: r ��,9:'•...... ��;+= SEPTEMBER 8, 1999 TARRANT COUNTY,TEXAS
E.ALLEN TAYLOR JR.,
CITY ATTORNEY
PLEASE PAY THIS ORIGINAL INVOICE AND RECONCILE WITH MONTHLY STATEMENT. THANK YOU!
TEAR ALONG THIS PERFORATION AND RETURN THE LOWER PORTION WITH YOUR PAYMENT�+
Star-'I'e1egrai .i
REMIT TO: , 400 W.SEVENTH ST. •FORT WORTH,TEXAS 76102
ACCOUNT C I T 5 7 AMOUNT 34 . 02
14957495 NUMBER DUE
PAGE ]I OF]I IF ANY QUESTIONS, PLEASE CALL(817)390-7885
CITY OF SOUTHLAKE
CTY SOUTHLAKE
667 N CARROLL AVE PLEASE PAY
SOUTHLAKE , TX 76092-6412 THIS AMOUNT 34 . 02
PLEASE WRITE IN AMOUNT ENCLOSED