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HomeMy WebLinkAbout84-2570 ord~. - 3 ORDINANCE N©. 84-2570 AN ORDINANCE L)EFINING AND PRESCRIBING THE RATES APPLICABLE TO THE SA]:JE OF NATURPiL GAS SERVICE BY ENERGAS COMPANY TO ITS CUSTQMERS WHO USE NATC'TRAL GAS WITHIN THE CITY LIMITS OF PLAIi~~VIEGJ, TEXAS. WHEREAS, heretofore on July 6, 1984, Energas Company, submitted an applicai~ion to the governing body of the City of Plainview proposing a schedule of rates t:o cover the sale of natural gas and natural gas service by Energas Company to its domestic and commercial type eustaners who use natural c~as within the city limits of the City of Plainview, such application being here referred to and made a part hereof; and WHI~,AS, said application has been considered by the. governing body of the City of Plainview, and it is the opinion. of the governing body that the' rate scY~edule proposed herein for the sale of natural gas. and natural gas service by Energas Company is just and reasonable, and should be approved; NOW 'I`HERE~OFI;, be it ordained by the governing body of the City of Plainvie~,v: 1. That Energas Company, its successors and assigns may make charges for the sale of natural gas and natural gas service to its customers who use natural gas within the City of Plainview as follows: Minimum Nbnthly Bill First 1 Mcf per Month at Next 3 Mcf per Month at Next 6 Mcf per Nkanth at All over 10 Mcf per Nbnth at MONTHLY RATE NET $4.61 $6.5873 $4.7527 per Mcf $4.5668 per Mcf $4.4553 per Mcf GROSS $5.12 $7.3192 $5.3808 per Mcf $5.0742 per Mcf $4.9503 per N1cf Bills rendered under the foregoing rate shall be subject to adjustment each month to the nearest .OlG per Mcf for (1) changes in the weighted average cost of gas. to the Company's supplier o:r suppliers for its West Texas Distribution System above or below 313.40~~ per Mcf at 13.6 psia and (2) changes in revenue taxes and lost gas e:Kpense associated with such changes in weighted average cost of gas. 2,. That the adjustments described in SECTION ONE of this ordinance shall be implemented in the following manner: a,. 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 purposed beginning with bills rendered on the first day of the following month. b„ 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 s:ha.ll placed in a Correcting Account and el;m;nated through subsequent billings. The Correction Account shall be kept to a minim~un at all times and shall be audited by Arthur Young and Company on a quarterly basis.. Moreover, Energas Company shall periodically or upon request inform the. City of tlhe current balance in the Correcting Account and make its records available to representatives of the City upon request. c.. A factor of 1.091395 shall be applied to the change in cost of gas tarn compensate for the associated change i:n revenue taxes and lost gas expense, PROVIDID THAT the tax recovery postion of such factor is based upon local and state tax rates which are in effect as of the date of this Ordinance. Should lthe rate of any one or more of such taxes be hereafter increased, Energas Company shall be entitled to adjust ikhe aforesaid factor accordingly. 3. If requested by the City, Energas Company shall, by March 1 of each year, furnish the City with the detail of gas purchased for its West Texas Distribution System during the previous calendar year as filed Frith the Railroad Commission of Texas. '-['he City may, as it deems desirable, examine books and records and make audits to determine the accuracy of the cost of gas purchased. 4. The above net rate included a 10% discount for payment of bills within 15 days after issuance. For all bills paid after such period, the gross :rate will apply. The cost of gas adjustment per Mcf shown om the gas bill is the net amount and must be converted to a gross amount for bills p<~.id after the due date. 5. The rate prescribed herein shall beccxne effective for all bills rendered on and after November 1, 1984, and Energas Company shall file with the City on or before said date (1) a written acceptance of the rates approved herein and (2) a schedule or tariff setting forth such rates. 6. All ordinances or parts of ordinances in conflict herewith are hereby repealed to extent of the conflict. 7. This ordinance shall become effectiveupon its passage and approval., On motion of , seconded by the foregoing ordinance was passed on first reading this the 9th clay of October, 1984 by the following vote: Voted. Voted Voted Voted Voted PASSID AND APPROVED this the 9th day of October, 1984. d t~ ~ / E.V.RIDL~EIUBER, Mayor. City of Panview, Texas ST: ~~ WALTER S. DODSON, City Clerk City of Plainview, Texas