CHAPTER 51:  GAS REGULATIONS

 

 

Section

 

                                                                                    Regulations

 

       51.01     Establishment of maximum service rate

       51.02     Base rate for adjustments

       51.03     Tax adjustments

       51.04     Additional charges

       51.05     Recovery of expenses through surcharge

       51.06     Changes and amendments

 

                                                                  Rates and Schedules

 

       51.15     Item A, Rates

       51.16     Item B, Gas cost adjustment

       51.17     Item C, Weather normalization adjustment

       51.18     Item D, Tax adjustment

       51.19     Item E, Rate case expense

       51.20     Item F, Schedule of service charges

       51.21     Item G, Main line extension rate

Cross-reference:

       International Fuel Code adopted, see § 150.06

 

 

 

                                                                     REGULATIONS

 

 

§ 51.01  ESTABLISHMENT OF MAXIMUM SERVICE RATE.

 

       (A)  (1)   Subject to the following provisos effective with gas bills rendered on and after 30 days from the final date of passage of this subchapter, the maximum general service rate for sales of natural gas rendered to residential and commercial consumers within the city limits of Glen Rose, Texas, is hereby fixed and determined as set forth in Item A, in the subchapter that follows. 

 

               (2)   This subchapter also approves the elimination of the Rate Schedule for Public Free Schools-N and the Commercial Contract Public School Rate and placement of those customers receiving that rate on the commercial rate set forth in Item A in the following subchapter.

 

 

            (B)       (1)        Proviso No. 1.  If this subchapter is finally passed and approved before the effective date stated in the statement of intent, the new rates shall be effective with gas bills rendered on and after 30 days from the final date of passage of this subchapter for the good cause of reducing regulatory lag.

 

                        (2)        Proviso No. 2.  If this subchapter is finally passed and approved after a period of suspension, the new rates shall be billable immediately in order to reduce regulatory lag.  This provision is an exercise of the regulatory authority’s discretion to establish the effective date of rates at any time after jurisdiction attaches, and its authority pursuant to state law to establish rates for any period of suspension.

(Ord. 245, passed 7-9-1991)

 

 

§ 51.02  BASE RATE FOR ADJUSTMENTS.

 

            The residential and commercial rates set forth above shall be adjusted upward or downward from a base of $4.0200 per Mcf by a gas cost adjustment factor expressed as an amount per 1,000 cubic feet (Mcf) of natural gas for changes in the intracompany city gate rate charge as authorized by the Railroad Commission of Texas or other regulatory body having jurisdiction for gas delivered to the Glen Rose Distribution System, according to Item B, in the subchapter that follows.  The rates in Item A shall also be adjusted in the following subchapter according to Item C, which is the Weather Normalization Adjustment.

(Ord. 245, passed 7-9-1991)

 

 

§ 51.03  TAX ADJUSTMENTS.

 

            Company shall also receive tax adjustments according to Item D, in the subchapter that follows.

(Ord. 245, passed 7-9-1991)

 

 

§ 51.04  ADDITIONAL CHARGES.

 

            In addition to the aforesaid rates, company shall have the right to collect such reasonable charges as are necessary to conduct its business and to carry out its reasonable rules and regulations in effect. The charges set forth in Items E, F and G, in the subchapter that follows, are approved.  Services for which no charge is set out may be performed and charged for by company at a level established by the normal forces of competition.

(Ord. 245, passed 7-9-1991)

 

 

§ 51.05  RECOVERY OF EXPENSES THROUGH SURCHARGE.

 

       In addition to the aforesaid rates, company is authorized to recover the current and any unrecovered prior rate case expense through a surcharge designed for a 6-month nominal recovery period.  The surcharge per Mcf will be calculated by dividing the rate case expense to be recovered by ½ of the adjusted annual sales volume to residential and commercial customers.  The company will provide monthly status reports to account for the collection.

(Ord. 245, passed 7-9-1991)

 

 

§ 51.06  CHANGES AND AMENDMENTS.

 

       The rates set forth in this subchapter may be changed and amended by either the city or company in the manner provided by law.  Service hereunder is subject to the orders of regulatory bodies having jurisdiction, and to the company’s rules and regulations currently on file in the company’s office.

(Ord. 245, passed 7-9-1991)

 

 

§ 51.15  ITEM A, RATES.

 

       (A)  The following rates are the maximum applicable to residential and commercial consumers per meter per month or for any part of a month for which gas service is available at the same location.

 

Residential

Rate

       Customer charge

$7.0000

       All consumption

$5.3916 per Mcf

If the service period is less than 28 days in a month, the customer charge is $.2500 times the number of days’ service.

Commercial

 

       Customer charge

$14.0000

       First 20 Mcf

$5.4528 per Mcf

       Next 30 Mcf

$5.1528 per Mcf

       Over 50 Mcf

$5.0028 per Mcf

If the service period is less than 28 days in a month, the customer charge is $.50000 times the number of days’ service.

 

       (B)  Bills are due and payable when rendered and must be paid within 15 days from the monthly billing date.

 

       (C)  An off-peak sales discount of $.25 per Mcf will apply to residential customers’ volume purchased in excess of 8 Mcf for each of the billing months May through October.

(Ord. passed - -)

 

 

§ 51.16  ITEM B, GAS COST ADJUSTMENT.

 

       (A)  Each monthly bill at the above rate shall be adjusted for gas cost as follows:

 

               (1)   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:

 

                      (a)   A volume factor of 1.0176 determined in establishing the above rates for the distribution system as the ratio of adjusted purchased volumes divided by adjusted sales volumes.

 

                      (b)   The city gate rate estimated to be applicable to volumes purchased during the current calendar month, expressed to the nearest $0.0001 per Mcf (shown in division (B) below as “Re”).

 

                      (c)   The base city gate rate of $4.0200 per Mcf.

 

               (2)   Correction of the estimated adjustment determined by division (A)(1) above shall be included as part of the adjustment for the second following billing month.  The correcting factor (shown in division (B) below as “C”) shall be expressed to the nearest $0.0001 per Mcf based upon:

 

                      (a)   The corrected adjustment amount based upon the actual city gate rate, less

 

                      (b)   The estimated adjustment amount billed under division (A)(1) above, divided by

 

                      (c)   Distribution system residential and commercial sales Mcf recorded on the company’s books during the prior year for the month that the correction is included as part of the adjustment.

 

               (3)   The adjustment determined by divisions (A)(1) and (A)(2) above shall be multiplied by a tax factor of 1.02415 to include street and alley rental and state occupation tax due to increasing or decreasing company revenues under this gas cost adjustment provision.

 

       (B)  In summary, the gas cost adjustment (GCA) shall be determined to the nearest $0.0001 per Mcf by divisions (A)(1), (A)(2) and (A)(3) as follows:

 

               GCA = [division (A)(1) + division (A)(2)]     X     division (A)(3)

 

               GCA = [(1.0176) (Re - $4.0200) + C]     X     1.02415

(Ord. passed - -)

 

 

 

§ 51.17  ITEM C, WEATHER NORMALIZATION ADJUSTMENT.

 

       (A)  Annually for the October through April billing months, the above residential and commercial consumption rates for gas service shall be subject to a weather normalization adjustment to reflect the impact monthly variations in the actual number of heating degree days from the normal level of heating degree days during the preceding billing months of October through April.  The weather normalization adjustment will be implemented on a per-Mcf basis.  The adjustment will be determined separately for residential and commercial customers based on heating degree data recorded by the Cleburne weather station.

 

       (B)  (1)   (a)   The dollars of margin overcollected or undercollected due to temperature variations will be calculated each month during the October through April billing months according to the following formula:

                                                   (AHL)

                                    M = (ADD) (NDD-ADD) (TM) (AC)

 

                      (b)   Where:  

 

                             M           =     Margin dollars overcollected or undercollected due to weather

                             AHL      =     Actual heating load per customer

                             ADD      =     Actual heating degree days

                             NDD      =     Normal heating degree days included in the determination of the above rates

                             TM =     Tailblock margin per Mcf in the above rates

                             AC =     Actual number of customers billed

 

                      (c)   The monthly overrecoveries and underrecoveries will be accumulated during the October through April billing months to determine the net margin dollars subject to the weather normalization adjustment.

 

               (2)   (a)   The weather normalization adjustment, to be implemented on a per-Mcf basis over the succeeding October through April billing months, is calculated according to the following formula:

 

                                    WNA = NM ± PM

                                                                                                

                                                          PV

                      (b)   Where:  

 

                             WNA     =     Weather normalization adjustment

                             NM        =     Net margin dollars during the preceding October through April billing months overrecovered or underrecovered due to temperature variations from normal

                             PM =     Amount overrecovered or underrecovered through the operations of the WNA during the preceding October through April billing months

12                                                         Glen Rose - Public Works

 

 

                             PV =     Projected level of sales volume during the October through April billing months to which the WNA is to be applied.  The projected level of sales volume will be the actual level during the preceding October through April billing months

 

                      (c)   The weather normalization adjustment will be calculated to the nearest $.0001 per Mcf and will be applied through the gas cost adjustment.  The weather normalization adjustment will be removed if the pass through or recovery of the targeted level of margin dollars is achieved prior to the passage of the full October through April billing period.

(Ord. passed - -)

 

 

§ 51.18  ITEM D, TAX ADJUSTMENT.

 

       The tax adjustment shall be an amount equivalent to the proportionate part of any new tax, increased tax, or any other governmental imposition, rental, fee or charge (except state, county, city and special district ad valorem taxes and taxes on net income) levied, assessed or imposed subsequent to July 1, 1990, upon or allocable to the company’s distribution operations, by any new or amended law, ordinance or contract.

(Ord. passed - -)

 

 

§ 51.19  ITEM E, RATE CASE EXPENSE.

 

       If rate case expense is incurred in this current case, it is the intention of the company to recover the current and any unrecovered prior rate case expense through a surcharge designed for a 6-month nominal recovery period.  The surcharge per Mcf would be calculated by dividing the rate case expense to be recovered by ½ of the adjusted annual sales volume to residential and commercial customers.  When a surcharge is applicable, monthly status reports will be provided to account for the collections.

(Ord. passed - -)

 

 

§ 51.20  ITEM F, SCHEDULE OF SERVICE CHARGES.

 

       (A)  Reconnect charge. 

 

               (1)   In addition to the charges and rates set out above, the company shall charge and collect the following sums as a reconnect charge for each reconnection or reinauguration of gas service, where service has been discontinued at the same premises for any reason:

 

 

Schedule

Charge

8:00 a.m. to 5:00 p.m., Monday through Friday

$25

5:00 p.m. to 8:00 a.m., Monday through Friday

$40

Saturdays, Sundays and holidays

$40

 

                        (2)        Exceptions to division (A)(1) shall be made:

 

                                    (a)        For a builder who uses gas temporarily during construction or for display purposes;

 

                                    (b)        For the first occupant of the premises;

 

                                    (c)        Whenever gas service has been temporarily interrupted because of system outage, service work or appliance installation done by the company; or

 

                                    (d)       For any reason deemed necessary for company operations.

 

            (B)       Returned check charge.  A returned check handling charge of $7.50 is made for each check returned to the company for reasons of nonsufficient funds, account closed, payment withheld, invalid signature or improper preparation.

 

            (C)       Collection charge.  A charge of $7 shall be made for each instance when it is necessary for a company employee to go to a customer’s residence or place of business in order to collect amounts owed the company for gas service previously rendered.  This charge shall not apply if service is terminated at the time of the collection action.  This charge shall apply to only 1 trip on the same amount owed.

(Ord. passed - -)

 

 

§ 51.21  ITEM G, MAIN LINE EXTENSION RATE.

 

            (A)       The charge for extending mains beyond the free limit established by the company, or any free limit established by franchise, for residential customers shall be the lesser of: 

 

                        (1)        The system-wide average cost of construction, including all overheads, for the prior fiscal year; or

 

                        (2)        The adjusted actual cost as determined by applying the latest Handy-Whitman Index to the 1975 actual base cost of $2.94. 

 

       (B)  The company shall file the calculation of this charge with the city as soon as sufficient data is available each fiscal year.  Extension to commercial and industrial customers shall be based on actual cost per foot.

(Ord. passed - -)

 

 

  Note: Every effort is made to insure the information provided on these pages is timely and correct. However, users should keep in mind that this is provided only as a public convenience. In any case where legal reliance on information is required, the official records of the City of Glen Rose should be consulted. City Hall's phone number is (254) 897-2272.