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Ord. 0366 11-28-77ORDINANCE NO. alp L AN ORDINANCE OF THE CITY OF PEARLAND, TEXAS, FIXING AND ORDERING THE RATES TO BE CHARGED BY ENTEX, INC. FOR GAS AND GAS SERVICE TO RESI- DENTIAL AND COMMERCIAL CUSTOMERS WITHIN THE CITY OF PEARLAND, TEXAS, ESTABLISHING THE EFFECTIVE DATE, REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING FOR SEVER ABILITY. WHEREAS, Entex, Inc. filed its Statement of Intent to change rates in the City of Pearland on October 11, 1977, and WHEREAS, after reasonable notice, the City Council of the City of Pearland entered on a hearing to determine the propriety of such change, and WHEREAS, after said hearing, the City Council of the City of Pearland has determined the level of rates to be charged or applied by Entex, Inc., NOW THEREFORE, BE IT OR- DAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND: SECTION 1. THAT, Entex, Inc. is hereby Ordered to issue and file with the City Secretary of the City of Pear - land, tariff sheets containing residential and commercial rate schedules identical to the tariff sheets attached hereto. SECTION 2. THAT, the rates set out on the rate schedules filed pursuant to Section 1. hereof, are to be ob- served by Entex, Inc., its successors and assigns, until changed by the City of Pearland, Texas pursuant to applicable provisions of the Texas Public Utility Regulatory Act. SECTION 3. THAT, Entex, Inc. shall not apply for or request a general rate increase during calendar year 1978. SECTION 4. THAT, this Order determining the level of rates to be charged or applied by Entex, Inc. shall be served upon Entex, Inc. by United States mail. SECTION 5. THAT, the tariff sheets filed by Entex, Inc. identical to the tariff sheets attached hereto,`shall become effective with bills rendered on or after the effect- ive date of this Ordinance. SECTION 6. THAT, all Ordinances and parts of Ordinances in conflict herewith are hereby repealed. SECTION 7. THAT, if any provision, section, sub- section, sentence, clause or. phrase of this Ordinance is for any reason held unconstitutional, void or invalid (or for any reason unenforceable), the validity of the remaining portions of this Ordinance shall not be affected thereby, it being the intent of the City in adopting this Ordinance that no portion hereof or provision or regulation contained here- in shall become inoperative or fail by any reason of any unconstitutionality or invalidity of any other portion, pro- vision or_ regulation, and to this end, all provisions of this Ordinance are declared to be severable. INTRODUCED, PASSED AND APPROVED on first reading at a regular meeting of the City Council of the City of Pearland on this the /4 day of ATTEST: City S of the City ofPearland, Texas of the City of Pearland, Texas ,t` PASSED, APPROVED AND ADOPTED on second reading at a regular meeting of the City Council of the City of Pearland on this the ;Z,Q day of .1 uP�r,��.r,, 1977. ATTEST: %tine itle 4 1977. APPROVED AND AUTHENTICATED: )7q arnir Mayor APPROVED AND AUTHENTICATED: B � � / y City S tary Mayor of the City o Pearland, Texas of the City of Pearland, Texas 1 THE STATE OF TEXAS COUNTY OF BRAZORIA I Dorothy L. Cook , the duly appointed, qualified and acting City Secretary of the City of Pearland, Texas, hereby certify: (1) that the above and foregoing Ordinance of the City of Pearland was passed and adopted on first reading at a regular meeting of the City Council of the City of Pearland held on the 14 day of November , 1977; (2) that written notice of the date, hour, place and subject of said meet- ing was posted for at least 72 hours preceding the sched- uled time of said meeting on a bulletin board located in a place in the City Hall which is convenient and readily accessible to the general public at all times; (3) that the Mayor, Carlton McComb and Councilmen, Harry Farley , Dennis Frauenberger Terry Gray , Tom Reid and , were present at said meeting and acted as the City Council throughout 4) that the above and foregoing Ordinancenb'ft}thf'f'�Qoate Schedules Pearland was passed and adopted on second and final R 390-1 €,SC reading at a regular meeting of the City Council of the 390-1 City of Pearland held on the 28 day of November 1977; (5) that written notice of the date, hour, place and subject of .said meeting was posted for at least 72 hours preceding the scheduled time of said meeting on a bulletin board located in a place convenient and readily accessible to the general public at all times;. (6) that the Mayor, Carlton McComb and Councilmen, Harry Farley , Dennis Frauenberger and rry Gray . Tom Reid Mrivris were meeting and actedas the City Councilthrat oughout(7)athat said Ordinance has been approved and authenticated by the Mayor and is duly attested by the City Secretary; and that the same has been duly engrossed andenrolled in the records of the City of Pearland, Texas. EXECUTED under my hand and the official seal of the City of Pearland, Texas, at said City, this 29 day of November , 1977. City tar of the City Pearland, Texas (SEA1) ENTEX, INC. RATE SHEET RESIDENTIAL SERVICE. (AMENDED) RATE SCHEDULE NO. R-390-1 APPLICATION OFSCHEDULE This schedule is applicable to consumers receiving gas for uses usual in a home through a single meter serving a single family dwelling and its related structures. Natural gas sup- plied hereunder is for the individual use of the customer at one point of delivery and shall not be resold or shared with others. NET MONTHLY RATE WINTER MONTHS SUMMER MONTHS (NOVEMBER -APRIU (MAY -OCTOBER, • First 400 cubic feet or less $4.50 $4.50 Next 2,600 " " '@ .140 .140 per 100 cubic feet Next 3,000 " " @ .125 - .125 " " " " Next 4,000 @ .105 .053 ' " u „ Next -. 10,000 " " @ .090 - - .053 " " Over 20,000 " II @ .075 - .053 ' " " MINIMUM MONTHLY BILL $4.50 net PAYMENT The above net monthly rates will apply to all bills paid by date indicated on bill. For bills not paid by indicated date, gross rates shall apply, which rates shall be the above net rates plus one cent (1¢) per 100 cubic feet ofgas consumed not to exceed $3.00. PURCHASED GAS ADJUSTMENT PROVISION See Rider "B" COST OF SERVICE ADJUSTMENT PROVISION Annually, effective for all bills rendered after April 1, 1979, the above monthly rate shall be adjusted upward or downward for increases or decreases in the cost of providing gas ser- vice (including depreciation but excluding cost of gas, gross receipts taxes, income taxes and return) for the previous year ended December 31 above or below such cost incurred in the calendar year 1977, except that until such time as the companyhas completed and the City has accepted a cost of service studyonwhich rates can equitably be based, such adjustment shall be based on the cubic feet of gas sold to similar customers in the Texas Coast Divi- sion in the preceding year and shall be assigned to every cubic foot sold under such rate in the following year. The operating expenses used in this computation shall be those reported to the Railroad Commission of Texas in the annual report of Entex, Inc. A compu- tation shall be made of the amount ofsuchincrease or decrease applicable to each customer in the Texas Coast Division, and the first block of the monthly rate set forth above shall then be adjusted upward or downward by one -twelfth of the amount so determined. All adjustments that become applicable pursuant to the terms of the foregoing paragraphshall become effective only after 30 days prior written notice to the city council of the approxi- mate amount of the proposed adjustment and such proposed adjustment shall not become effective if disapproved by action of the city council during such 30-day period. At the time it is furnished such written notice of adjustment, the city council shallbe fur- nished written information showing (1) that the proposed adjustment will not produce more than a fair rate of return to the company, and (2) that such system is being efficiently operated. Service under this schedule shalt be furnished in accordance with the Company's General Rules and Regulation. ENTEX, INC. RATE SHEET RESIDENTIAL SERVICE RATE SCHEDULE NO. R-390-1 COST OF SERVICE ADJUSTMENT PROVISION (cont'd.) The citycouncil shall further be furnished such additional data as it may reasonably request to permit the city council to satisfy itself as to the reasonableness of the proposed rate and the efficiency of the operation of the company. All data furnished in accordance with the foregoing adjustment shall be certified to be accurate by a certified public accountant. ENTFX. INC. TEXAS GAS RATE,BOOK RIDER B NATURAL GAS COST ADJUSTieM FACTOR The Natural Gas Cost Adjustment Factor for the current month shall be calculated according to the following formula: G-CF Natural Gas Cost Adjustment Factor = C- Base Cost ($/Mcf) 1-T Definitions G =.Natural gas costs estimated to be purchased for resale by, the Company to domestic customers in the Pearland itegrated Distribution System for the current month as recorded in the Company's accounts which are equivalent to accounts 800 through 804, inclusive, of. the NARUC Uniform System of Accounts. • M = All Mcf of natural gas estimated to be sold and recorded in the current month by the Company to. domestic 'customers in the Pearland Integrated Distribution System. T = Composite tax rate for gross receipts and other revenue related taxes and gross - receipts payments relating only to sales to domestic customers for the Company in the Pearland Integrated Distribution Systemexpressed as a decimal. CF = A Correction Factor adjustment to be applied in the current month to provide for an allowance due to variance between actual and. estimated Natural Gas Cost Adjust- ment revenues derived from the. Natural Gas Cost. Adjustment Factor for the third preceding month prior tothe current month. CF = (A)-(B). x (1-T) where (A) is the actual Natural Gas Cost Adjustment revenues received from the Natural Gas Cost Adjustment Factor applied in the third preceding month and (B) is the Natural Gas Cost Adjustment revenues which would have been received from the application of the Natural Gas Cost .Adjustment Factor in the third preceding month if actual rather than estimated Natural Gas Cost and Mcf sales (described above) had been available to calculate the Natural Gas Cost Adjustment Factor for that month. Penalty Clause - - If at the end of the month falling 12 months after the date of enactment of this ord- inance, and on an annual basis thereafter, the net sum of the Correction Factors for the previous 12-months exceeds 5% of the sum of "(B)" above for the same period, then a penalty equal to 10% of such excess will be computed and this amount will beused to reduce the Natural Gas Cost Adjustment Factor in the third succeeding month. This reduction will not otherwise affect such computation of the Natural Gas Cost Adjustment Factor for subsequent periods. The Natural Gas Cost Adjustment Factor shall be rounded to the nearest $0.0001 per Mcf. r ENTEX, INC. RATE SHEET COMMERCIAL SERVICE RATE SCHEDULE NO. 5C-390-1 APPLICATION OF SCHEDULE (AMENDED) This schedule is applicable to consumers using gas for purposes other than residential whose consumption in any month is less than 150,000 cubic feet. When a customer uses in excess of 150,000 cubic feet in any month, the consumer shall be billed on the applicable large volume rate. schedule. Natural gas supplied hereunder is for the indivisual use of the customer at one point of delivery and shll not be resold or shared with others. NET MONTHLY RATE First 400 cubic feetor less $5.00 ' Next 2,600 " 0 .140 per 100 cubic feet Next 3,000 " " "@ .125 " " " " Next 4,000 " " @ . .105 " " " ' " Next 10,000 @ .090 " " " " Over 20,000 " " @. .075 " " 6 " MINIMUM MONTHLY BILL $5.00 net PAYMENT The above net monthly rates will apply to all bills paid by date indicated on bill. For bills not paid by indicated date, gross rates shall apply, which rates shall be the above net rates plus one cent (1¢) per 100 cubic feet of gas consumed not to exceed $3.00. PURCHASED GAS ADJUSTMENT PROVISION See Rider "8". COST OF SERVICE ADJUSTMENT PROVISION Annually, effective for all bills rendered after April 1, 1979, the above monthly rate shall be adjusted upward or downward for increases or decreases in the cost of providing gas ser- vice (includingdepreciation but excluding costof gas, gross receipts taxes, income taxes and return) for the previous year ended December 31 above or below such costincurred in the calendar year 1977, except that until such time as the company has completedand the City has accepted a cost of service study on which rates can equitably be based, such adjustment shall be based on the cubic feet of gas sold to similar customers in the Texas Coast Divi- sion -in the preceding year and shall be assigned to every cubic foot sold under such rate in thefollowing year. The operating expenses used in this computation shall be those reported to the Railroad Commission of Texas in the annual report of Entex, Inc. A compu- tation shall be made of the amount of such increase or decrease applicable to each customer in the Texas Coast Division, and the first block of the monthly rate set forth above shall then be adjusted upward or downward by one -twelfth of the amount so determined. All adjustments that become applicable pursuantto the terms of the foregoing paragraph shall becomeeffectiveonly after-30 days prior written notice to the city council of the approxi- mate amount of the proposed adjustment ant such proposed adjustmentshallnot become effective if disapproved by action of the city council during such 30-day period. - - At the time it is furnished such written notice of adjustment, the city council shall be fur- nished written information showing (1) that the proposed adjustment will not produce more than a fair rate of return to the company, and (2) that such system is being efficiently operated. Service under this schedule shall be furnished in accordance with the Company's General Rules and Regulations. 14 ENTEX, INC. RATE SHEET COMMERCIAL SERVICE RATE SCHEDULE NO. SC-390-1 COST OF SERVICE ADJUSTMENT PROVISION (cont'd.) The city council shall further be furnished such additional data as it may reasonably request to permit the city council to satisfy itself as to the reasonableness of the proposed rate and the efficiency of the operation of the company. All data furnished in accordance with the foregoing adjustment shall be certified to be accurate by a certified public accountant. QIrE(. INC. TEXAS GAS RATE BOOK RIDER B NATURAL GAS COST ADJUSTMENT FACTOR The Natural Gas Cost Adjustment Factor for the current month shall be calculated according to the following formula: G-CF Natural Gas Cost Adjustment Factor = -T(-- Base Cost ($/Mcf) 1-T Definitions G = Natural gas costs estimated to be purchased for resale by the Company to domestic customers in the Pearland Integrated Distribution System for the current Month as recorded 3n the Company's accounts which are equivalent to accounts 800 through 804, inclusive, of the MARUC Uniform System of Accounts. M = All Mcf of natural gas_ estimated: to be sold and recorded in the current month by the Company Co. domestic _Customers, i¢ the Pearland Integrated Distribution System. T = Composite tax rate for gross receipts and other revenuerelated taxes and gross _ receiptspaymentsrelating only tosalesto domestic customers for the. Company .in the. Pearland Integrated Distribution System expressed as a decimal.. CF A Correction Factor adjustment to beapplied in the current month to provide for an allowance due to variance between actual and estimated Natural Gas Cost Adjust- ment revenues derived from the Natural Gas Cost Adjustment Factor for the third preceding month prior to the current. month. CF = (A)-(8) x (1-T) where (A) is the actual Natural Gas Cost Adjustment revenues. received from the Natural Gas Cost Adjustment Factor applied in the thirdpreceding month and (B) is the Natural Gas Cost Adjustment revenues which would havebeen received from the application of the Natural Gas Cost Adjustment Factor in the third preceding month if actual rather than estimated Natural Gas Cost and Mcf sales. (described above) had been available to calculate the Natural Gas Cost Adjustment Factor for that month. - - Penalty Clause If at the end of the month falling 12 months after the date of enactment of this ord- inance, and on an annual basis thereafter, the net sum of the Correction Factors for the previous 12 months exceeds 5% of the sum of "(B)" above for the same period, then a penalty equal to 10% of such excess will be computed and this amount will be used to reduce the Natural Gas Cost Adjustment Factor in the third succeeding month. This reduction will not otherwise affect such computation of the Natural. Gas Cost Adjustment Factor forsubsequent periods. The Natural Gas Cost Adjustment Factor shall be rounded to the nearest $0.0001 per Mcf.