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Home My WebLink About81-2472 ordORDINANCE NO. 81-2472 AN ORDINANCE DEFINING AND PRESCRIBING THE RATES APPLICABLE TO THE SALE OF NATURAL GAS BY ENERGAS COMPANY TO CERTAIN OF ITS CUSTOMERS WHO USE NATURAL GAS WITHIN THE CITY LIMITS OF PT~ATMVTE~T , TEXAS: PROVIDING FOR MONTHLY ADJUSTMENTS,. TO THE NEAREST .01~, IN SUCH RATES, 'IN ACCORDANCE WITH INCREASES OR DEC'PEASES IN THE AVERAGE MONTHLY COST OF GAS TO ENERGAS COMPANY TOGETHER WITH ASSOCIATED CHANGES IN REVENUE TAXES AND LOST GAS EXPENSES; DEFINING COST OF GAS; PROVIDING FOR THE IMPLEMENTATION OF SUCH MONTHLY ADJUSTMENTS; ESTABLISHING AN EFFECTIVE DATE; AND CONTAINING A SAVINGS AND SEVERABILITY CLAUSE WHEREAS, heretofore, on July 31, 1981, Energas Company, a division of Pioneer Corporation and successor to Pioneer Natural Gas Company, submitted a Statement of Intent to the governing body of the City of Plainview , Texas, proposing a schedule of rates to cover the sale of natural gas by Energas Company to certain of its customers who use natural gas within the City Limits of Plainview ; 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 hereinafter amended, for the sale of natural gas and natural gas service by Energas Company 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 Energas 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 to its customers who use natural gas within the City of Plainview , Texas, as follows: Monthly Rate: Minimum Monthly Bill First 1 Mcf per month @ Next 3 Mcf per month @ Next 6 Mcf per month @ All Over 10-Mcf per month @ GENERAL SERVICE RATE Net $4.42 $5.4684 $3.7112 per Mcf $3.5329 per Mcf $3.4249 per Mcf Gross $4.9i $6.0760 $4.1236 per Mcf $3.9254 per Mcf $3.8054 per Mcf Monthly Rate: First 50 Mcf per month @ iNext 50 Mcf per month @ All Over 100 Mcf per month @ !Minimum~Monthly Bill: $28.60 net SMALL INDUSTRIAL RATE Net $3.4627 per Mcf $3.3327 per Mcf $3.2147 per Mcf Gross $3.8474 per Mcf $3.7030 per Mcf $3.5719 per Mcf LARGE GAS AIR CONDITIONING AND/OR ELECTRIC GENERATING GAS SERVICE RATE* Monthly. Rate: Gas used per month Minimum Monthly Bill: $114.40 ' net Net $3.1479 per Mcf Gross $3.4977 per Mcf *Does not apply to Municipally-owned power plants or electric utilities. SECTION TWO. That the rates set forth in Section One hereof to be charged by Energas Company for the sale of natural gas in the City of Plainview shall be subject to monthly adjustment to the nearest ,01¢ for (1.) changes in the weighted average cost of gas to Energas Company above or below 236.37¢ per Mcf at 13.6 psia and (2.) changes in revenue taxes and lost gas expense associated with such changes in weighted average cost of gas. SECTION THREE. That "weighted average cost of gas" or "cost of gas" Shall be defined as the cost of gas for Westar Transmission Company's West Texas Transmission System, .which shall be the total of the following amounts divided by the volume of gas: Amounts paid for the volumes purchased at wellheads, at field lines, at gasoline plant outlets and at trans- mission lines under the provisions of the applicable contracts involved including recoupment of amortization of prepayments. It also includes volumes obtained in excess of receipts under gas exchange agreements and storage gas withdrawals in excess of injections during · the period at the applicable costs and amounts paid for delivery of gas into Westar's West Texas Trans- mission System in, situations where the supplier can- not make delivery into such system thus reflecting the cost of gas at the initial point of delivery into Westar's West Texas Transmission System. -2- SECTION FOUR. That the adjustments described in SECTION TWO of this ordinance shall be implemented .in the following manner: Prior to the end of each month Energas Company shall notify the City of (a) the actual weighted average cost of gas for the previous month and (b) the estimated cost of gas~for the current month, which will be used for billing Purposes beginning with bills rendered on the first day of the following month. Any over or undercollection of revenues resulting from the' estimated cost of gas billed during a month being different from the actual weighted average cost of gas for such month shall be placed in a Correcting Account and eliminated through subsequent billings. The Cor- recting Account shall be kept to a minimum at all times and shall be audited by Arthur Young and Company on a · quarterly basis. Moreover~ Energas Company shall period- icallyor upon request inform the City of the current balance in the Correcting Account and make its records available to representatives of the City'upon request. A factor of 1.095407 shall be applied to the change in cost of gas to compensate for the associated change in revenue taxes and lost gas expense, PROVIDED THAT the tax recovery portion of such factor is based upon local and state tax rates which are in effect as of the date of this Ordinance. Should the rate of any one or more of such taxes be hereafter increased, Energas Company shall be entitled to adjust the aforesaid factor accordingly. SECTION FIVE. If requested by the City, Energas Company shall, by March 1 of each year, furnish the City with the detail of gas purchased by Westar Transmission Company for its West Texas Transmission System during the.previous calendar year as filed with the Railroad Commission of Texas. The City may, as it deems desirable, examine books and records and make audits to determine the accuracy of the cost of gas purchased. SECTION SIX. That the rates and adjustments thereto prescribed herein are effective for bills rendered on or after the 15th 'day of December, 1981, and Energas Company shall file with the City, on or before said date: (1.) a written acceptance of said rates and adjust- ments in lieu of those accompanying its July 31, 1981 Statement of Intent; and (2.) schedules or tariffs setting forth such rates and adjustments. SECTION SEVEN. 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 -3- portions of this Ordinance. The governing body of the City of P%ainview hereby dealar~s that it would have passed this Ordinance and each section, subsection, sentence, clause or phrase hereof irrespectiVe of the fact that any one or more sections,~ Subsections, sentences, clauses, or phrases be declared unconstitutional or invalid. SECTION EIGHT. That the rate adjustments authorized by this ordinance 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~charter~ statutes, or franchise provisions. The above and foregoingordinance was duly proposed, read in full and adopted on first reading, the 24th day of November , A.D., 1981; and passed to second reading on motion of Cduncilman Almon seconded by Councilman Woods ., by the following vote: Councilmen voting "AYE": Place One, Two, Three, Four and Five. Councilmen voting "NAY": None The above and foregoing ordinance was read in full and finally adopted by the following vote upon motion of Councilman Woods seconded by Councilman Tillers0n , on the 8th day of December . ~, A.D. 1981, at a regular meeting of the City Council: Councilmen voting "AYE": Place one, Two, Three, Four and Five. Councilmen voting "NAY": None pASSED AND APPROVED THIS A.D., 1981. ATTEST: City Secretary APPROVED: City Attorney 8th day of December -4-