HomeMy WebLinkAbout79-2300 ord79-2300
AN ORDINANCE DEFINING AND PRESCRIBING THE RATES
APPLICABLE TO THE SALE OF NATURA~ GAS AND NATURAL
GAS SERVICE BY PIONEER NATURAL GAS COMPANY TO CERTAIN
OF ITS CUSTOMERS WHO USE NATURAL GAS WITHIN THE CITY
LIMITS OF PLAINVIEW, TEXAS; PROVIDING FOR
MONTHLY ADJUSTMENTS, TO THE NEAR~ST .016, IN SUCH
RATES, IN ACCORDANCE WITH INCREASES OR DECREASES
IN THE AVERAGE MONTHLY COST TO PIONEER OF GAS
]PURCHASED FOR ITS WEST TEXAS TRANSMISSION SYSTEM;
PLACING CERTAIN LIMITS ON THE MAXIMUM AMOUNT OF
SAID MONTHLY ADJUSTMENTS; DEFINING COST OF GAS;
ESTABLISHING AN EFFECTIVE DATE; AND CONTAINING A
SAVINGS AND SEVERABILITY CLAUSE
WHEREAS, heretofore, on August 10, 1978, Pioneer Natural Gas Company,
a division of Pioneer Corporation, submitt~md a Statement of Intent to
the governing body of the City of Plainview, Texas, proposing a
sch~edule of rates to cover the sale of natural gas and natural gas
s~rvice by Pioneer Natural Gas Company to certain of its customers who
use natural gas within the City Limits of Plainv~e~ ; and
WHEREAS, said application has been considered by the governing body
of the City' of Plainview, Texas, and it is the opinion of the
governing body that the proposed schedule of rates, as amended, for the
sale of natural gas and natural gas service by Pioneer Natural Gas
Com'pany is just and reasonable, and should be approved;
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF
PLAINVIEW, TEXAS:
SECTION ONE. That Pioneer Natural Gas Company, its successors and
assigns, may make charges under its General Service, Small Industrial, and
Large Gas Air Conditioning And/Or Electric Generating Gas Rates for the
sale of natural gas and natural gas service to its customers who use
natural gas within the City of Plainview, Texas, as follows:
GENERAL SERVICE
Monthly Rate: Net Gross
First 1 Mcr or less per month $4.000 $4.4444
Next 3 Mcf per month $2.4094 per Mcf $2.6771 per Mcf
Next 6 Mcf per month $2.2481 per Mcf $2.4979 per Mcf
Ail Over 10 Mcf per month $2.1487 per Mcf $2.3874 per Mcf
Monthly Rate:
First
Next
Ail Over
Minimum Monthly Bill:
SMALL INDUSTRIAL RATF.
Net
50 Mcf per month
50 Mcf per month
100 Mcf per month
$2.0774 per Mcf
$1.9638 per Mcf
$1.8605 per Mcf
$25.00 - Net
Gross
$2.3082 per Mcr
$2.1820 per Mcf
$2.0672 per Mcf
LARGE GAS AIR CONDITIONING AND/OR
ELECTRIC GENERATING GAS RATE*
Monthly Rate=
Ail gas.used per month
Minimum Monthly Bill:
Net
$1.8021 per Mcf
$100.00 - Net
~=Does not apply to Municipally-owned power plants.
Gross
$2.0023 per Mcf
SECTION TWO. That the rates set forth in Section One hereof to
be charged by Pioneer Natural Gas Company for the sale of natural gas
and natural gas service in the City of Plainview shall be
adjusted in the following manner:
'Each month Pioneer Natural Gas Company shall notify the City of the
average cost of gas per Mcf at 13.6 psia for its West Texas Transmission
System during the previous month. Said notice shall be filed with the
City Secretary, with additional copies of such notice to be sent to such
City officials as may be requested. The cost of gas shown in such notice
shall be broken down into the four classifications hereinafter described.
Unless the City notifies Pioneer Natural Gas Company within 10 days of
receipt of said notice that it does not accept such notice of cost as
being correct (and the City reserves complete discretion to adcept or
reject such notice of cost for any reason), the rates per Mcf to be charged
by Pioneer Natural Gas Company for all bills rendered on or after the first
day of the month following expiration of the said 10-day period shall be
adjusted up or down to the nearest .016 by which the average monthly cost
of gas to Pioneer Natural Gas Company for its West Texas Transmission
System is more than or less than 141.416 per Mcf at 13.6 psia (152.33~
per Mcf at 14.65 psia), subject to the following provisions:
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For the purpose of determining the cost of gas and the cost of gas
adjustments applicable above, the term "average cost of gas" is the total
of the following amounts divided by the volume of gas:
1. Amounts paid for the volumes purchased at wellheads, at
field lines, at gasoline plant outlets and at transmission
lines under the provisions of the applicable contracts in-
volved including recoupment of amortizatiom of prepayments.
It also includes volumes in e~cess of receipts under gas ex-
change agreements and storage gas withdrawals in excess of
injections during the period at the applicable costs.
2. Interest charged at the prime rate in effect on the first day
of each month or the actual rate, whichever is less, upon
funds advanced for gas development or dedicated volumes
based upon the outstanding portion of such advancements.
3. Amounts paid for delivery of gas into Pioneer's West Texas
System in situations where the supplier cannot make delivery
into Pioneer~'s lines thus reflecting the cost of gas at the
initial point of delivery into Pioneer's West Texas System.
4. Amortization over a 5-year period of funds advanced for gas
supply development which is nonproductive.
The portion of any adjustment increase authorized by this Section, which
is attributable to items number 2 and number 4 described above, shall
never ~xceed a combined total of 1-1/2~ per Mcf per momth.
By March 1 of each year Pioneer Natural Gas Company shall furnish the
City with the detail of gas purchased for its West Texas Transmission System
durin~ the previous calendar year as filed with the Railroad Commission
of Texas. The City may, as it deems desirable, examine the books and
records of Pioneer Natural Gas Company and make audits to determine the
accuracy of the cost of gas purchased by Piomeer Natural Gas C~mpany for
its West Texas Transmission System.
SECTION THREE, That the rates and adjustments thereto prescribed
herein are effective for gas delivered om or after the 15th day of
February, 1979, and Pioneer Natural Gas Company shall file with the City,
on or before said date: (1.) a writtem acceptance of said rates and ad-
justments in lieu of those accompanying il~s August 10, 1978 Statement
of Intent; an~ (2.) schedules ~r tariffs setting forth such rates and
adjustments.
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SECTION FOUR. That if any section, subsection, sentence, clause or
phrase of this Ordinance is, for any reason, held to be unconstitutional
or invalid such holding shall not affect the validity of the remaining
portions of this Ordinance. The governimg body of the City of
Plainview hereby declares that it would have passed this Ordinance
and each section, subsection, sentence, clause or phrase hereof irrespec-
tive of the fact that any one or more sections, subsections, sentences,
clauses, or phrases be declared unconstitutional or invalid.
SECTION FIVE. That the "Cost of gas adjustment" authorized by this
ordimance shall in nowise be construed as an abrogation or waiver (by
contract or otherwise) of the rate making powers and prerogatives of the
City of Plainview granted by char~er, statutes, or franchise
provisions.
The above and foregoing ordinance w~s read im full and finally
adopted by the following vote upon motion of Councilman ~. i~[~i~ ,
seconded by Councilman %D~il~ ....... , on the f.~_~ day of
_~~~___~ A.D. 1979, at a regular meeting of the City Council:
Councilmen ¥oting "AYE":
Councilmen voting "NAY":
A.D., 19~9~
ATTE~~ ..
~ity Secretary/ l
City Attcrney'~' ....... ~
Mayor, City of Plainview
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