HomeMy WebLinkAboutOrdinance No. 2009-20 (Title: An Ordinance approving a negotiated settlement between the Gulf Coast Coalition
of Cities and CenterPoint Energy Entex regarding CenterPoint's Cost of Service ,
Adjustment riling and adopted tariffs that reflect these negotiated rate adjustments.)
ORDINANCE NO. 2009-20
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
FRIENDSWOOD, TEXAS, ("CITY") APPROVING NEGOTIATED
RESOLUTION BETWEEN THE GULF COAST COALITION OF CITIES
AND CENTERPOINT ENERGY ENTEX ("CENTERPOINT" OR
"COMPANY") REGARDING THE COMPANY'S COST OF SERVICE
ADJUSTMENT ("COSA") FILING; DECLARING EXISTING RATES TO
BE UNREASONABLE; REQUIRING THE COMPANY TO REIMBURSE
CITIES' REASONABLE RATEMAKING EXPENSES; ADOPTING
TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITH
THE NEGOTIATED RESOLUTION AND FINDING THE RATES TO BE
SET BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE;
ADOPTING A SAVINGS CLAUSE; DETERMINING THAT THIS j
ORDINANCE WAS PASSED IN ACCORDANCE WITH THE
REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT;
DECLARING AN EFFECTIVE DATE; REPEALING ANY PRIOR j
ORDINANCES INCONSISTENT WITH THIS ORDINANCE AND
REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY
AND LEGAL COUNSEL.
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WHEREAS, the City of Friendswood, Texas ("City") is a gas utility customer of
CenterPoint Energy Entex, Texas Coast Division ("CenterPoint" or "Company"), and a
regulatory authority with an interest in the rates and charges of CenterPoint; and
WHEREAS, the City is a member of the Gulf Coast Coalition of Cities ("GCCC") (such
participating cities are referred to herein as "GCCC"), a coalition of similarly situated cities
served by CenterPoint that have joined together to facilitate the review and response to natur{1
gas issues affecting rates charged in the CenterPoint's Texas Coast Division service area;
WHEREAS, pursuant to the terms of the agreement settling the Company's 2008
Statement of Intent to increase rates, GCCC and the Company worked collaboratively to develop
the COSA tariff that allows for an expedited rate review process controlled in a three-year
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�\ experiment by GCCC as a substitute to the current GRIP process instituted by the Legislature;
and
WHEREAS, the City took action in 2008 to approve a Settlement Agreement with
CenterPoint resolving the Company's 2008 rate case and authorizing the COSA tariff; and
WHEREAS, the 2008 Settlement Agreement contemplates reimbursement of GCCC's,
reasonable expenses associated with COSA applications; and
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WHEREAS, on or about May 1, 2009, CenterPoint filed with the City a COSA tariff
seeking to increase natural gas rates to all customers residing in the City; and
WHEREAS, GCCC coordinated its review of CenterPoint's COSA filing and designated
attorneys and consultants to resolve issues in the Company's COSA filing; and
WHEREAS, the Company has filed evidence that existing rates are unreasonable and
should be changed; and
WHEREAS, independent analysis by GCCC's rate expert concluded that CenterPoint i
able to justify a slight rate increase over current rates; and
WHEREAS, the GCCC's lawyer and consultant, recommend that GCCC members
approve the attached rate tariffs ("Attachment A" to this Ordinance); and
WHEREAS, the attached tariffs implementing new rates are consistent with the
negotiated resolution reached by GCCC and are just, reasonable, and in the public interest; and
WHEREAS, it is the intention of the parties that if the City determines any rates,
revenues, terms and conditions, or benefits resulting from a Final Order or subsequent negotiated
settlement approved in any proceeding addressing the issues raised in the Company's COS
filing would be more beneficial to the City than the terms of the attached tariff, then the more
favorable rates, revenues, terms and conditions, or benefits shall additionally accrue to the City!;
and
Ord.2009-20 2
WHEREAS, the negotiated resolution of the Company's COSA filing and the resulting
rates are, as a whole, in the public interest.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF FRIENDSWOOD, STATE OF TEXAS:
Section 1. That the findings set forth in this Ordinance are hereby in all things approved.
Section 2. That the City Council finds that the existing rates for natural gas service,
provided by CenterPoint are unreasonable, and new tariffs, which are attached hereto and
incorporated herein as Attachment A, are just and reasonable and are hereby adopted.
Section 3. That CenterPoint shall reimburse the reasonable rate making expenses of the
GCCC in processing the Company's rate application.
Section 4. That to the extent any resolution or ordinance previously adopted by the
Council is inconsistent with this Ordinance, it is hereby repealed.
Section 5. That the meeting at which this Ordinance was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code
Chapter 551.
Section 6. That if any one or more sections or clauses of this Ordinance is adjudged to
be unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining
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provisions of this Ordinance and the remaining provisions of the Ordinance shall be interpreted
as if the offending section or clause never existed.
Section 7. That if the City determines any rates, revenues, terms and conditions, or
benefits resulting from a Final Order or subsequent negotiated settlement approved in any
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proceeding addressing the issues raised in the Company's COSA filing would be more beneficial
to the City than the terms of the attached tariff, then the more favorable rates, revenues, terms
and conditions, or benefits shall additionally accrue to the City.
Section 8. That this Ordinance shall become effective from and after its passage with
f rates authorized by attached Tariffs to be effective for bills rendered on or after August 1,2009.
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Ord.2009-20 3
Section 9. That a copy of this Ordinance shall be sent to Thomas Brocato, General
Counsel to the Gulf Coast Coalition of Cities, at Lloyd Gosselink Rochelle & Townsend, P.C.,
P.O. Box 1725,Austin, Texas 78767-1725.
PASSED AND APPROVED on first reading this 14th day of September,2009.
PASSED,APPROVED, and ADOPTED on second and final reading this 28`' day of
September,2009.
id J.H. Smith
Mayor
ATTEST:
FRIEyO
�OF S�
O �
G {
Delor s McKenzie,TRMC
City Secretary
OF
s � �
Ord.2009-20 4
Exhibit A s
CENTERPOINT ENERGY RESOURCES CORP.
D/B/A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
TEXAS COAST DWISJON
RATE SHEET
RATE CASE EXPENSE RECOVERY RATE SCHEDULE NO.RCE-1
APPLICATION OF SCHEDULE
This schedule is applicable to any customer served under residential, general service-small or general service-large
rates schedules in the following cities:
Alvin, Clear Lake Shores, Dickinson, Friendswood, Kemah, Lake Jackson, La Marque, Mont Belvieu, Morgans
Point,Rosenberg,Santa Fe,Seabrook,Sugar Land,Taylor Lake Village,Texas City.
This rate schedule is for the recovery of rate case expense and shall be in effect beginning August 1,2009 for a
period of two years or until all approved expenses are collected.
MONTHLY RATE
RECOVERY FACTOR:
$0.00503 per Ccf for all gas used.
RULES AND REGULATIONS
Service under this schedule shall be famished in accordance with the Company's General Rules and Regulations,as
such rules may be amended from time to time. A copy of the Company's General Rules and Regulations may be
obtained from Company's office located at I I l l Louisiana Street,Houston,Texas.
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CENTERPOINT ENERGY RESOURCES CORP.
D/B/A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
TEXAS COAST DIVISION
RATE SHEET
GENERAL SERVICE-SMALL
RATE SCHEDULE NO.GSS-2075
APPLICATION OF SCHEDULE
This schedule is applicable to natural gas service to any customer engaging in any business, professional or
institutional activity, for all uses of gas, including cooking, heating, refrigeration, water heating, air conditioning,
and power.
This schedule is applicable to any general service customer for commercial uses and industrial uses,except standby
service,whose average monthly usage for the prior calendar year is 150,000 cubic feet or less. Natural gas supplied
hereunder is for the individual use of the customer at one point of delivery and shall not be resold or shared with
others.
MONTHLY RATE
For bills rendered on and after the effective date of this rate schedule,the monthly rate for each customer receiving
service under this rate schedule shall be the sum of the following:
(a) The Base Rate consisting of:
(1) Customer Charge—$13.65;
(2) Commodity Charge—
First 150 Ccf $0.0850
Over I50 Ccf $0.0623
(b) Tax Adjustment—The Tax Adjustment will be calculated and adjusted periodically as defined in the
Company's Tax Adjustment Rate Schedule and Franchise Fee Adjustment Rate Schedule.
(c) Gas Cost Adjustment—The applicable Purchased Gas Adjustment(PGA)Rate—as calculated on a per
Ccf basis and adjusted periodically under the applicable Purchased Gas Adjustment (PGA) Rate
Schedule—for all gas used.
RULES AND REGULATIONS
Service under this schedule shall be furnished in accordance with the Company's General Rules and Regulations,as
such rules may be amended from time to time. A copy of the Company's General Rules and Regulations may be
obtained from Company's office located at 11 I I Louisiana Street,Houston,Texas.
Customer Charge $13.00
COSA-2 2008 Charge _65
Total Customer Charge $13.65
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CENTERPOINT ENERGY RESOURCES CORP.
D/B/A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
TEXAS COAST DIVISION
RATESHEET
GENERAL SERVICE-LARGE VOLUME
RATE SCHEDULE NO.GSLV-606
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AVAILABILITY
This schedule is available at points on existing facilities of adequate capacity and suitable pressure in the area
designated in the Rate Book of CENTERPOINT ENERGY RESOURCES CORP., D/B/A CENTERPOINT
ENERGY ENTEX AND CENTERPOINT ENERGY TEXAS GAS(hereinafter called"Company"),
APPLICATION OF SCHEDULE
This schedule is applicable to any general service customer for commercial uses and industrial uses whose average
monthly usage for the prior calendar year is more than 150,000 cubic feet. Gas supplied hereunder is for the
individual use of the Consumer at one point of delivery and shall not be resold or shared with others. If the
Consumer has a written contract with Company,the terms and provision of such contract shall be controlling.
MONTHLY RATE
For bills rendered on and after the effective date of this rate schedule,the monthly rate for each customer receiving
service under this rate schedule shall be the sum of the following:
(a) The Base Rate consisting of:
(1) Customer Charge— $13.65;'
(2) Commodity Charge—
First 1,500 Ccf $0.0844
1,500—10,000 Ccf $0.0588
Over 10,000 Ccf $0.0498
(b) Tax Adjustment— The Tax Adjustment will be calculated and adjusted periodically as defined in the
Company's Tax Adjustment Rate Schedule and Franchise Fee Adjustment Rate Schedule.
(c) Gas Cost Adjustment—The applicable Purchased Gas Adjustment(PGA)Rate—as calculated on a per
Mcf basis and adjusted periodically under the applicable Purchased Gas Adjustment (PGA) Rate
Schedule—for all gas used.
WRITTEN CONTRACT
In order to receive a delivery from Company of more than 25 Mcf during any one day,the Consumer must execute a
written contract with Company on Company's form of contract covering the sale of gas by Company to it. In the
case of existing Consumers, the maximum gas usage during any one day shall be obtained from the records of the
Company,except in cases where the existing Consumer will be purchasing increased volumes of gas from Company
because of expansions or for any other reasons,in which event the Company may estimate usage by such Consumer.
Customer Charge 513.00
COSA-2 2008 Charge 65
Total Customer Charge $13.65
CENTERPOINT ENERGY RESOURCES CORP.
D/B/A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
TEXAS COAST DIVISION
RATESHEET
GENERAL SERVICE-LARGE VOLUME
RATE SCHEDULE NO.GSLV-606
Also in the case of new Consumers,the Company may estimate usage by the Consumer. Any such estimates made
by Company shall be binding on Consumer in determining whether or not a contract is required. Such written
contract shall be executed by Consumer upon request of Company and Company shall not be obligated to serve any
such Consumer more than 25 Mcf during any one day until such written contract is executed and delivered by
Consumer.
MEASUREMENT
The term"cubic foot of gas"for the purpose of measurement of the gas delivered and for all other purposes is the
amount of gas necessary to fill a cubic foot of space when the gas is at an absolute pressure of 14.65 pounds per
square inch and at a base temperature of sixty(60)degrees Fahrenheit.
The term"Mcf'shall mean 1,000 cubic feet of gas.
The Sales Unit shall be one Mcf.
Assumed Atmospheric Pressure - The average atmospheric pressure shall be assumed to be fourteen and seven-
tenths(14.7)pounds per square inch,irrespective of actual elevation or location of the point of delivery above sea
level or variation in such atmospheric pressure from time to time.
Orifice Meters-When orifice meters are used for the measurement of gas,such orifice meters shall be constructed
and installed, and the computations of volume made, in accordance with the provisions of Gas Measurement
Committee Report No.3 of the American Gas Association as revised September, 1969("A.G.A.Report No.3),with
any subsequent amendments or revisions which may be mutually acceptable.
The temperature of the gas shall be determined by a recording thermometer so installed that it may record the
temperature of the gas flowing through the meter or meters. The average of the record to the nearest one(1)degree
Fahrenheit, obtained while gas is being delivered, shall be the applicable flowing gas temperature for the period
under consideration.
The specific gravity of the gas shall be determined by a recording gravitometer owned and operated by the pipeline
company from whom Company purchases its gas, so installed that it may record the specific gravity of the gas
flowing through the meter or meters;provided,however,that the results of spot tests made by the pipeline company
with a standard type specific gravity instrument shall be used at locations where the pipeline company does not have
a recording gravitometer in service. If the recording gravitometer is used, the average of the record to the nearest
one-thousandth(0.001),obtained while gas is being delivered,shall be the applicable specific gravity of the gas for
the period under consideration. If the spot test method is used, the specific gravity of the gas delivered hereunder
shall be determined once monthly,the result obtained,to the nearest one-thousandth(0.001),to be applicable during
the succeeding billing month.
Adjustment for the effect of supercompressibility shall be made according to the provisions of A.G.A.Report No.3,
hereinabove identified,for the average conditions of pressure,flowing temperature and specific gravity at which the
gas was measured during the period under consideration,and with the proportionate value of each carbon dioxide
and nitrogen in the gas delivered included in the computation of the applicable supercompressibility factors.
Company shall obtain appropriate carbon dioxide and nitrogen fraction values as may be required from time to time.
Positive Displacement Meters and Turbine Meters -When positive displacement meters and/or turbine meters are
used for the measurement of gas, the flowing temperature of the gas metered shall be assumed to be sixty (60)
CENTERPOINT ENERGY RESOURCES CORP.
D/B/A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
TEXAS COAST DIVISION
RATESHEET
GENERAL SERVICE-LARGE VOLUME
RATE SCHEDULE NO.GSLV-606
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degrees Fahrenheit,and no correction shall be made for any variation therefrom;provided however,that company !
shall have the option of installing a recording thermometer,and if company exercises such option,corrections shall
be made for each degree variation in the applicable flowing temperature for the period under consideration.
The volumes of gas determined shall be adjusted for the effect of supercompressibility as follows:
(A) When the flowing temperature of gas is assumed to be sixty (60) degrees Fahrenheit, the
supercompressibility factor shall be the square of the factor, Fpv,computed in accordance with
the principles of the A.G.A.Report No.3,hereinabove identified,for a pure hydrocarbon gas of !
six-tenths(0.6)specific gravity and for the average pressure at which the gas was measured.
(B) When the flowing gas temperature is recorded and applied according to the option above,the
supercompressibility factor shall be the square of the factor, Fpv,computed in accordance with
the principles of the American Gas Association Gas Measurement Committee Report No. 3,
hereinabove identified,for a pure hydrocarbon gas of six-tenths(0.6)specific gravity and for the
average conditions of pressure and flowing temperature at which the gas was measured.
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SUPPLY INTERRUPTIONS
Total or partial interruption of gas deliveries due to acts of God,the elements,requirements for residential and other i
uses declared superior to Consumers by law,or to other causes or contingencies beyond the control of Company or
t not proximately caused by Company's negligence,shall not be the basis for claims-delivery and receipt of gas to be
resumed whenever any such cause or contingency shall end.
CHARGES FOR UNAUTHORIZED OVER-RUN GAS
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Any gas taken during any day by Consumer which exceeds the maximum daily quantity specified in Consumer's
contract with Company shall be considered to he unauthorized over-run gas. Any gas taken by Consumer after the
effective hour of an order calling for a complete curtailment of all gas deliveries, and prior to the authorized
resumption of natural gas service,hereunder shall be considered to be unauthorized over-run gas. Any gas taken by
Consumer after the effective hour of an order calling for a partial curtailment,and prior to the authorized resumption
of natural gas service, which exceeds the stated amount of gas deliveries Consumer may take during such partial j
curtailment, shall be considered to be unauthorized over-run gas. Company shall bill, and Consumer shall pay for
unauthorized over-run gas at the rate of W.00 per Mcf, in addition to the Monthly Rate specified herein for such
gas. The payment of such additional charge for unauthorized over-run gas shall not, under any circumstances,be
considered as giving the Consumer the right to take unauthorized over-run gas, nor shall such payment be
considered to exclude or limit any other remedies available to Company against the Consumer for exceeding the
maximum daily quantity specified in Consumer's contract with Company,or for failure to comply with curtailment
orders issued by Company hereunder.
The additional amount specified above charged for unauthorized over-run gas shall be adjusted,either plus or minus,
to conform to the change made by Company's supplier in its rate schedule under which Company purchases its gas
supply for resale under this schedule.
CENTERPOINT ENERGY RESOURCES CORP.
D/R/A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
TEXAS COAST DIVISION J
RATESHEET
GENERAL SERVICE-LARGE VOLUME
RATE SCHEDULE NO.GSLV-606
RULES AND REGULATIONS
Service under this schedule shall be famished in accordance with the Company's General Rules and Regulations,as
such rules may be amended from time to time. A copy of the Company's General Rules and Regulations may be
obtained from Company's office located at I I I I Louisiana Street,Houston,Texas.
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CENTERPOINT ENERGY RESOURCES CORP.
D/B/A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
TEXAS COAST DIVISION
RATESHEET
RESIDENTIAL SERVICE
RATE SCHEDULE NO.R-2075
APPLICATION OF SCHEDULE
This schedule is applicable to any customer to whom service is supplied in a single private dwelling unit and its
appurtenances,the major use of which is for household appliances,and for the personal comfort and convenience of
those residing therein.
Natural gas supplied hereunder is for the individual use of the customer at one point of delivery and shall not be
resold or shared with others.
MONTHLY RATE
For bills rendered on and after the effective date of this rate schedule,the monthly rate for each customer receiving
service under this rate schedule shall be the sum of the following:
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(a) The Base Rate consisting of
(1) Customer Charge— S13.65
(2) Commodity Charge—
All Ccf $0.0724
_ (b) Tax Adjustment—The Tax Adjustment will be calculated and adjusted periodically as defined in the
Company's Tax Adjustment Rate Schedule and Franchise Fee Adjustment Rate Schedule.
(c) Gas Cost Adjustment—The applicable Purchased Gas Adjustment(PGA)Rate—as calculated on a per
Ccf basis and adjusted periodically under the applicable Purchased Gas Adjustment (PGA) Rate
Schedule—for all gas used.
RULES AND REGULATIONS
Service under this schedule shall be furnished in accordance with the Company's General Rules and Regulations,as
such rules may be amended from time to time. A copy of the Company's General Rules and Regulations may be
obtained from Company's office located at I I I 1 Louisiana Street,Houston,Texas.
Customer Charge $13.00
COSA-2 2008 Charge 65
Total Customer Charge $13.65