HomeMy WebLinkAboutO-1466ORDINANCE NO.: 1466
AN ORDINANCE AMENDING ORDINANCE NO.700,
ORDINANCE NO. 1121 AND ORDINANCE NO. 1417, AN ORDINANCE TO AMEND
AND ADD TO CHAPTER 21, ARTICLE V, GAS, SECTION 21-61
FAIRHOPE CODE OF ORDINANCES.
BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF FAIRHOPE,
ALABAMA, as follows:
Section 1. The Code of Ordinances, City of Fairhope, Alabama, Chapter 21,
Article V, Section 21-61 is hereby amended to reflect the
following changesand additions:
Article V. GAS
Section 21-61. Rates - Schedules.
Tile following rate designations, and rates, for all gas customers of the city are hereby
established:
(1) Residential service within city limits —GI: Applicable to individual dwellings and
apartments whose physical location is within the corporate limits:
Monthly Rates
Customer Charge: $8.83 per bill rendered
First 40 CCF (one hundred cubic feet): $1.49 per CCF
Over 40 CCF (one hundred cubic feet): $1.41 per CCF
(2) Residential service outside city limits—G2: Applicable to individual dwellings and
apartments whose physical location is outside the corporate limits:
Monthly Rates
Customer Charge: $9.29 per bill rendered
First 40 CCF (one hundred cubic feet): $1.57 per CCF
Over 40 CCF (one hundred cubic feet): $1.48 per CCF
(3) Smal I Commercial service inside and outside city limits--G2: Applicable to small
commercial establishments whose physical location is inside or outside the corporate
limits:
Monthly Rates
Customer Charge: $9.29 per bill rendered
First 40 CCF (one hundred cubic feet): $1.57 per CCF
Over 40 CCF (one hundred cubic feet): $1.48 per CCF
(4) School service inside and outside city limits—S1: Applicable to public and private
schools regardless of physical location:
Monthly Rates
Customer Charge: $16.99 per bill rendered
First 40 CCF (one hundred cubic feet); $1.40 per CCF
Next 960 CCF (one hundred cubic feet): $1.30 per CCF
Next 1,000 CCF (one hundred cubic feet): $1.26 per CCF
Over 2000 CCF (one hundred cubic feet): $1.19 per CCF
(5) Large commercial and industrial service inside and outside City — G3 and G4:
Applicable to large commercial and industrial customers whose median monthly
consumption is 200 CCF or more on an interruptible basis:
Monthly Rates. -
Customer Charge: $16.30 per bill rendered
All CCF (one hundred cubic feet): $1.55 per CCF
Ordinance No. 1466
Page 2
(6) Special Wholesale Rate to the Town of Daphne, Alabama---G5: (Discontinued).
(7) City of Fairhope Use ---- G6: Rates for city use shall be the above set out for G 1,
Residential Service rates.
(8) Interruptible 1, 000+ Mcf industrial rate—G7: Applicable to all large commercial and
industrial customers whose median monthly consumption is one thousand (1,000) Mcf
or above on an interruptible basis. Service to more than one (1) premises shall not be
combined (unless served through one (1) meter), nor shall it be shared with or
resold to others.
Monthly rate:
The monthly rate applied to all consumption shall be the monthly Interruptible Gas
rate charged by BP Energy (stated in dollars per MCF) delivered to the City of
Fairhope; plus a surcharge of $0.50 per Mcf.
If consumption is less than 1,000+ Mcf, the rate shall be G2. Service hereunder shall
be for a minimum initial period and thereafter from day to day until terminated. A
notice of time of usage must be given to the city not less than twenty-four (24) hours
prior to said usage time.
(9) Manufacturing service rate ---GB: Applicable to all industrial customers involved in
the manufacture of various equipment items and other products, located inside and
outside the corporate limits.
Monthly rate. -
Customer charge: $270.00 per bill rendered.
All CCF (one hundred cubic feet): $1.40 per CCF
(10) General rules and regulations:
(a) The above rates are those charged by the city and any additional charges
levied by state or federal authorities, such as the four (4) per cent state
utilities tax, shall be in addition to said rates.
(b) Bills are payable within ten (10) days from due date and, if not paid within such
period, may be increased by an amount to be determined by council.
(c) When applicable, a service charge will be applied by the city gas
department for calls made when interruption of service is not the
fault of the city.
(d) Retail service to more than one premises (unless served through one
meter) shall not be combined, nor shall it be shared with or
resold to others.
(e) In the event the supply of natural gas to the city is curtailed or if the total supply
is inadequate, only high -priority customers shall continue to receive service in
accordance with the city's curtailment plan. A high -priority customer includes
users of gas in a residence, small commercial establishment, school, hospital or
similar institution, or any use where curtailment would endanger life, health,
welfare or maintenance of physical property due to the unavailability of an
alternate energy supply.
(f) Normal service and delivery pressure to the customer shall be determined by the
pressure available in the city's mains at the customer's location and may be
reduced as necessary by the city to comply with supplier and regulatory
curtailment directives under the current Modified IV Category Plan. Where the
customer's normal operational pressure requirements exceed the delivery
pressure available, thus requiring the installation of increased compressor
capacity, a pressure factor (corresponding to the psig) will be used to calculate
the actual monthly consumption to be billed.
Ordinance No. 1466
Page 3
(g) In the event a maximum daily quantity (MDQ) overrun penalty is levied against
the city, due, in part or in whole, to industrial delivery overruns, the industry
will pay a daily overrun penalty of one dollar ($1.00) per hundred (100) cubic
feet against all units in excess of the industry's established MDQ in addition
to the established rate.
(11) Gas rate adjustments: The foregoing retail rate schedules shall be subject to
adjustment, if the wholesale rate goes up or down, the wholesale percentage will
be passed through to the retail customer. Adjustments to the base retail rate
schedules listed above shall be performed, in the absence of a formal rate hearing, in
accordance with either one or both of the formulas set out below in subsection (10)(a)
Gas Cost Adjustment (GCA) and (10)(b) Revenue Requirement Adjustment. A
formal rate hearing shall be held at least once every two (2) years, or in the event
that total adjustments to the base retail rate schedules reach or exceed twenty cents
($0.20) per hundred (100) cubic feet, to review and adjust the base retail rates above,
and also the adjustment formulas as required.
(a) Gas Cost Adjustment (GCA):
Schedule GCA shall provide for the monthly fluctuation in
wholesale purchased gas costs as reflected in the monthly
quote received from BP Energy Company (`BP"). The GCA
shall also account for any changes in monthly gas
transportation costs. In the event schedule GCA results in a
negative factor, such negative GCA factor shall be applied to
each customer's monthly bill. All GCA factors shall be
rounded off to the nearest one -hundredth of a cent ($0.00) per
one hundred cubic feet sold.
The GCA shall be calculated based on the current billing
period's wholesale gas cost anticipated to be billed by
supplier(s) (e.g., BP), plus anticipated gas transportation
charges, adjusted to the retail billing level as follows:
GCA = [(PGC + GTC) x 1.032 x (1/1-RAF) / 10] - BGC
Where:
PGC = Purchased Gas Cost for the coming billing period
stated in dollars per MMBtu (million British Thermal Units).
PGC includes the commodity cost of gas and all applicable
taxes and surcharges.
GTC = Gas Tansportation Cost for the coming billing period
stated in dollars per MMBtu.
RAF = Retail Adjustment Factor to adjust the dollars per
MCF charge to the retail billing level, currently 0.05. RAF
may be adjusted from time to time based on actual
experience.
BGC = the cost of delivered gas in current base rates ($0.56
per CCF). BGC shall remain unchanged until the next the
revision to base rates.
(b) Revenue Requirement Adjustment (RRA)
RRA = (EO - $5,986,000) + (EG - $1,307,600) / RS
EG is new or budgeted annual contributions to the Fairhope general fund;
EO is estimated or budgeted annual operation and maintenance costs for the
next twelve (12) months;
RS is total annual Fairhope retail sales, excluding city use, in CCf
estimated for the next twelve months.
Ordinance No. 1466
Page 4
(12) The foregoing retail rate schedule shall be further subject to adjustment in certain areas
defined and specified as subject to the competitive rate environment. Such areas are those
in which the city is competing or will have to compete with other gas suppliers for market
share. The purpose of this discretion to adjust rates in the defined area or areas is to
enhance the municipal utility's ability to successfully compete and gain market share.
Section 2. The sections, paragraphs, sentences, clauses and phrases of this ordinance are
severable, and if any phrase, clause, sentence, paragraph or section of this
ordinance shall be declared unconstitutional by a courtof competent jurisdiction,
then such ruling shall not affect any other paragraphs and sections, since the same
would have been enacted by the municipality council without the incorporation of
any such unconstitutional phrase, clause, sentence, paragraph or section.
Section 3. This ordinance shall take effect immediately upon its due adoption and
publication as required by law.
ADOPTED THIS THE 12TH DAY OF DECEMBER, 2011
Attest:
a A. H ks, MNMC
City Clerk