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Ordinances in conflict herewith are hereby repealed.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.