O209.~
ORDINANCE NO. 209
AN ORDINANCE OF THE CITY OF KENNEDALE, TEXAS, FIXING AND
DETERMINING THE MAXIMUM GENERAL SERVICE RATE TO BE
CHARGED FOR SALES OF NATURAL GAS TO RESIDENTIAL AND
COMMERCIAL CONSUMERS IN THE CITY OF KENNEDALE, TEXAS;
PROVIDING FOR THE MANNER IN WHICH SUCH RATE MAY BE
CHANGED, ADJUSTED, AND AMENDED; PROVIDING FORAWEATHER
NORMALIZATION CLAUSE; PROVIDING FOR THE RECOVERY OF THE
CURRENT RATE CASE EXPENSE; PROVIDING FORA SCHEDULE OF
CERTAIN SERVICE CHARGES; AND PROVIDING FOR A MAIN LINE
EXTENSION RATE; PROVIDING A SEVERABILITY CLAUSE; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Kennedale, Texas is a home rule city acting under its charter
adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and
Chapter 9 of the Local Government Code; and
WHEREAS, on May 26, 2000, TXU Gas Distribution ("TXU Gas") , a division of TXU
Gas Company (formerly Lone Star Gas Company), filed with the City Secretary a
"Statement of Intent to Change Rates" under which higher rates charged by TXU Gas
would go into effect in the City on July 3, 2000; and
WHEREAS, on July 28, 2000 TXU Gas filed an updated rate filing with the City
which established a new proposed implementation date of September 1, 2000, and agreed
to the City's right to suspend implementation of the schedule proposed by the revised rate
filing for up to 90 days following the revised proposed implementation date; and
WHEREAS, on December 12, 2000 TXU Gas agreed to extend the date for
implementation of TXU Gas's updated rate schedule to the City Council's next regular
meeting; and
WHEREAS, the City of Kennedale, has conducted a public hearing on the request
of TXU Gas to increase rates at which all interested parties were given a full opportunity
to comment on the rate filing; and
WHEREAS, the City has considered the application of TXU Gas, and has reviewed
an evaluation of the application, and 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 KENNEDALE,
TEXAS;
SECTION 1. The City Council, pursuant to its exclusive original jurisdictional
authority over the rates, operations and services of TXU Gas within the City and in the
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• , exercise of its sound legislative discretion, that the existing rates and charges of TXU Gas
Distribution are herebyfound, after reasonable notice and hearing, to be unreasonable and
shall be changed as hereinafter ordered. Further, the City Council finds that the City does
not have evidence of any unfair advantage by either TXU Gas or its industrial customers
in the City with regard to contract negotiations for industrial gas rates, and therefore, in
accordance with Section 104.003(b) of the Texas Utilities Code, contractual industrial gas
rates are considered to be just and reasonable. Based on the above facts and in
accordance with the mandates of Section 104.003(b) of the Texas Utilities Code, the City
Council approves rates for industrial customers in the City established by contract between
TXU Gas and such industrial customers. Therefore the City declines to establish rates for
industrial customers in the City as requested by TXU Gas in its Rate Filing.
SECTION 2. For all gas consumed on and billed on or after the effective date of
this ordinance, the maximum general service rate for sales of natural gas rendered to
residential, and commercial, consumers within the corporate limits of Kennedale, Texas
by TXU Gas Distribution, a division of TXU Gas Company, a Texas corporation, its
successors and assigns, is hereby fixed and determined as set forth as follows:
Residential Gas Rates.
The following rates are the maximum permitted rates and charges applicable to
residential customers per meter per month or for any part of a month for which gas
service is available at the same location:
Customer Charge $8.00
All Consumption @ $3.8301 per Mcf
An off-peak sales discount of $0.25 per Mcf will apply to residential customers'
volume purchased in excess of 8 Mcf for the following billing months:
May, June, July, August, September and October.
If the service period is less than twenty-eight (28) days in a given month, the
customer charge shall be $0.2857 times the number of days' service.
Commercial Gas Rates.
The following rates are the maximum permitted rates and charges applicable to
commercial customers per meter per month or for any part of a month forwhich gas
service is available at the same location:
Customer Charge
First 20 Mcf @
Next 30 Mcf @
Over 50 Mcf @
$14.00
$4.1150 per Mcf
$3.8150 per Mcf
$3.6650 per Mcf
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If the service period is less than twenty-eight days in a given month, the customer
charge shall be $0.5000 times the number of days' service.
SECTION 3. The residential and commercial rates set forth above shall be adjusted
upward or downward from a base of $2.7535 per Mcf by a Gas Cost Adjustment Factor
expressed as an amount per thousand cubic feet (Mcf) of natural gas for changes in the
intercompany city gate rate charge as authorized by the Railroad Commission of Texas or
other regulatory body having jurisdiction for gas delivered to the City of Kennedale
distribution system, according to the following:
The City gate rate increase or decrease applicable to current billing month
residential and commercial sales shall be estimated to the nearest $0.0001
per Mcf based upon:
2. The City gate rate estimated to be applicable to volumes purchased during
the current calendar month, expressed to the nearest $0.0001 per Mcf ("Re"
in the summary below), less
3. The base City gate rate of $2.7535 per Mcf, multiplied by
4. A volume factor of 1.0216 determined in establishing the above rates for the
distribution system as the ratio of adjusted purchased volumes divided by
adjusted sales volumes.
(a) Correction of the estimated adjustment determined by Section 3 shall be
included as part of the adjustment for the second following billing month. The
correcting factor ("C" in the summary below) shall be expressed to the nearest
$0.0001 per Mcf based upon:
(1) The corrected adjustment amount based on the actual City gate rate,
less
(2) The estimated adjustment amount billed under Section 3, divided by
(3) Distribution system residential and commercial sales Mcf recorded on
TXU Gas's books during the prior year for the month that the
correction is included as part of the adjustment.
In summary, the gas cost adjustment ("GCA") shall be determined to the nearest
$0.0001 per Mcf by Section 3(a) plus Section 3(b) as follows:
GCA = [(1.0216)(Re - $2.7535) + C]
SECTION 4. Residential and commercial rates shall also be subject to weather
normalization adjustments as follows:
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Weather Normalization Adjustment.
Effective with bills rendered during the October 2000 through May 2001 billing
months, and annuallythereafterforthe OctoberthroughMay billing months, the residential
and commercial consumption rates for gas service, as adjusted, shall be subject to a
weather normalization adjustment each billing cycle to reflect the impact of variations in the
actual heating degree days during the period included in the billing cycle form the normal
level of heating days during the period included in the billing cycle. The weather
normalization adjustment will be implemented on a per Mcf basis and will be applicable to
the heating load of each customer during the period included in the billing cycle. It will be
determined separately for residential and commercial customers based on heating degree
data recorded by the D/FW Airport weather station. The adjustment to be made for each
billing cycle will be calculated according to the following formula:
WNA =NDD-ADD x M x AHL
ADD
WHERE:
WNA = Weather normalization adjustment
NDD = Normal heating degree days during the period covered by the
billing cycle
ADD = Actual heating degree days during the period covered by the
billing cycle
M = Weighted average margin per Mcf included in the commodity
portion of the rates effective during the October through May
billing months
AHL = Actual heating load per customer
The heating load to which the weather normalization adjustment is to be applied for
residential and commercial customers shall be determined by subtracting the base
load for the customer from the total volume being billed to the customer. The base
load of a customer is the average level of nonheating consumption.
The weather normalization adjustment shall be subject to a 50 percent (50%)
limitation factor based on temperatures being 50 percent (50%) warmer or colder
than normal. The weather normalization adjustment will be calculated to the
nearest $0.0001 per Mcf.
SECTION 5. The residential and commercial rates set forth above shall be adjusted
upward or downward for changes in municipal franchise fees, street and alley assessment
and state gross receipts taxes imposed by Sections 182.021 through 182.024 of the Texas
Tax Code occurring after the effective date of this ordinance.
SECTION 6. In addition to the aforesaid rates, Company shall have the right to
collect the following charges:
(1) Connection Charge
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The Company shall charge and collect the sum of:
Schedule Charge
Business Hours $ 35.00
After Hours 52.50
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.
(b) 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.
(2) Read for Change Charge
TXU Gas may assess a maximum "read for change" charge of $12.00 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.
(3) Returned Check Charges
TXU Gas may assess a maximum returned check handling charge of $16.25
for each check returned to the Company for any reason.
(4) 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.
(5) Mainline Extension Rate
The charge for extending mains beyond the free limit established by
franchise for residential, commercial, and industrial customers shall be the
actual cost per foot of the extension.
SECTION 7. to order to ensure that rates and charges assessed by TXU Gas in the
City are just and reasonable to both TXU Gas and its customers, the City reserves the right
and privilege at any time to increase, decrease, alter, change or amend this ordinance or
the rates established herein or to enact any ordinance or adopt any rates and charges
which would effectuate that purpose. In this connection, the City further reserves the right
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i and privilege to exercise any authority and power granted to it under any applicable law,
ordinance or administrative rule or regulation.
SECTION 8. It is hereby declared to be the intention of the City Council that the
phrases, clauses, sentences, paragraphs and sections of this ordinance are severable, and
if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared
unconstitutional by the valid judgment or decree of any court of competent jurisdiction,
such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences,
paragraphs and sections of this ordinance, since the same would have been enacted by
the City Council without the incorporation in this ordinance of any such unconstitutional
phrase, clause, sentence, paragraph or section.
SECTION 9. This ordinance shall take effect from and afterthe date of its adoption.
The City Secretary is hereby directed to deliver a certified copy of this ordinance to TXU
Gas.
~~`'~ '' jVD APPROVED on this the 11th day of January, 2001.
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APPROVED AS TO FORM AND LEGALITY:
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City Attorney
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