HomeMy WebLinkAboutPO 5302:SOUTHERN UNION GASINTER
OFFICE
MEMO
To:
From:
Subj oct:
Date:
Mayor, City Council & City Manager
Mark T. Sokolow, City Attorney
P.O. No. 5302 Council Meeting November 26, 2002
November 22, 2002
Attached is P.O. No. 5302 acting on the requested rate
increase of Southern Union Gas. There will also be an Executive
Session on the overdue franchise issues. Mrs. McTaggart, Director,
Financial and Regulatory Analysis and Mr. Roberts will be making a
presentation.
MTS/ts
Attachment
P. O. No. 5302
11/22/02 ts
RESOLUTION NO.
A ORDINANCE ACTING ON THE REQUESTED RATE
INCREASE OF SOUTHERN UNION GAS
WHEREAS, on November 5, 2002, Southern Union Gas filed a
Statement of Intent to Change Rates; and
WHEREAS, Southern Union Gas has indicated that the rate
increase will reflect an increase of base revenue of $518,950 per
year; and
WHEREAS, Southern Union Gas has indicated that the rate
increase will also reflect an increase of approximately $ 350,000
per year as it pertains to reapportioning the line items as to
sales tax and franchise fees; and
WHEREAS, the total yearly increase for Southern Union Gas will
be approximately $868,949 per year; and
WHEREAS,
monthly billing
customers as well
denoted in Exhibit
WHEREAS,
transportation
Southern Union Gas plans to increase the minimum
period for the different classifications of
as to delete and adjust the per Ccf charges as
~A-i"; and
Southern Union Gas also plans to impose a
service charge, which has not been previously
approved by the City Council by Ordinance or by Resolution;
WHEREAS,
on the cost
Southern Union Gas not paid the City
of gas paid by customers using the
and
franchise fees
transportation
tariff or the special transportation contracts
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
TEXAS:
That the facts and opinions in the preamble are
OF PORT ARTHUR,
Section 1.
true and correct.
Section 2.
That the operation of the schedule of new
charges and rates are herein suspended for ninety (90) days after
the date the schedule would otherwise be in affect as per Section
104.107 Utility Code.
Section 3. That the City Council desires to review said
rate for an additional period and to seek public comment. The City
Council therefore orders Southern Union Gas to provide the
information or documents denoted in the attached Exhibit "A-2" by
December 10, 2002.
Section 4. That a public hearing shall be held on December
17, 2002, at 7:00 p.m. as to receive public comment on the proposed
tariff changes and any alterations suggested by the City Council.
Section 5. That the City Council reserves the right to
readjust the rates as to establish just and reasonable rates.
Section 6. That the City Secretary shall send a copy of
this Ordinance to Southern Union Gas.
Section 7. That this Ordinance shall be effective
immediately.
Section 8.
That a copy of the caption of this Ordinance be
z.po5302 2
spread upon the Minutes of the City Council.
READ, ADOPTED A~D APPROVED on this day of
, A.D., 2002, at a Regular Meeting of the City
Council of the City of Port Arthur, Texas, by the following vote:
AYES: Mayor
Councilmembers ,
NOES:
ATTEST:
MAYOR
CITY SECRETARY
APPROVED AS TO FORM:
CITY ATTORNEY
APPROVED FOR ADMINISTP. ATION:
CITY MANAGER
z .po5302 3
EXHIBIT "A- I "
Southern
Union Gas
4201 39~ Street, Port Arthur, Texas 77642
November 5, 2002
The Honorable Mayor and Members
of the City Council
City of Port Arthur
Port Arthur, Texas
The Honorable Mayor and Members
of the City Council
City o f Nederland
Nederland, Texas
The Honorable Mayor and Members
of the City Council
City of Groves
Groves, Texas
The Honorable Mayor and Members
of the City Council
City of Port Neches
Port Neches, Texas
Dear Mayor and Members of the City Council:
Southern Union Gas Company ("Company"), a division of Southern Union
Company, respectfully files this Statement of Intent to Change Rates within the Cities of
Port Arthur, Groves, Nederland and Port Neches, Texas. The proposed changes do not
constitute a major change as that term is defined by Section 104.101 of the Texas Utility
Code. The Company requests that the proposed rate change become effective in thirty-
five (35) days.
The Company's South Jefferson County Service Area includes the Cities of Port
Arthur, Groves, Nederland and Port Neches. The costs associated with providing gas
service to these cities are aggregated on the Company's books and records. As a result,
the analysis reflected in the attached schedules and narrative relates to the entire South
Jefferson County Service Area. The attached schedules, which are part of this Statement
of Intent, reflect a required base r~venue increase for the entire service area of $518,950.
The increase as a percent of total adjusted revenue for the South Jefferson County
Service Area is 5.78 percent. By contrast, consumer prices generally have increased by
34.7 percent in the eleven years since the last rate increase in the South Jefferson County
Service Area. Since then, the Company has invested almost $7,500,000 in plant to ensure
safe, reliable, quality gas service for its South Jefferson County Service Area customers.
The proposed rate increase is due, primarily, to the need to recover the costs associated
with this investment. In addition, the Company has experienced a decline in customer
usage due to building and appliance efficiency, while the costs to serve these customers
remain unchanged. The requested increase is partially offset by the Company's request
to lower its authorized rate of return from 11.379 percent, granted in the last rate case, to
9.743 percent, and by the Company's proposal to recover revenue-related taxes as a
separate line item on the bill, rather than including an estimate of these expenses in the
overall revenue incr0ase.
PEOPLE SERVING CUSTOMERS AND THE ENVIRONMENT WITH COMMITMENT, LEADERSHIP AND INNOVATION
Honorable Mayor and Members
of the City Council
November 5, 2002
Page Two
The Company proposes to collect the required increase in a manner that spreads
customer bill impacts throughout the year, rather than concentrating the increase in the
winter months. By charging customers a greater customer charge each month, recovery
of the fixed costs to serve these customers is spread more evenly throughout the year.
For residential customers, the leveling effect of the proposed rate structure will create
bills that are more predictable throughout the year. By paying a somewhat higher but
predictable bill in the non-winter months when usage and bills are typically lower, the
customer obtains some protection against unpredictable and possibly higher winter bills.
Exhibit 3, under the "Summary" tab, compares the proposed rate design (A) to
one that recovers the increase solely through increases in volumetric rates 03). Assuming
typical weather, the average residential customer would pay $5.96, or 12 percent, more
during the three winter months under a volumetric rate design compared to the proposed
rate design. The advantage of the proposed rate structure is even more apparent during
colder than normal years. If weather were 10 percent colder than normal, the average
residential customer would pay $8.08, or 15 percent, more under a volumetric rate design
during the winter months compared to the proposed rate design.
In addition, the Company proposes to simplify the rate structure so that rates and
customer bills will be easier for customers to understand. We have included the first 200
Ccf of monthly residential gas use at no charge and customers will only pay a fiat service
rate for all additional monthly volumes over 200 Ccf. The simple monthly customer
charge and two-step rate replace the previous customer charge and five-step usage rate.
Included in this filing, the Company introduces a few revisions to existing
procedures. First, the Companj proposes to collect state gross receipts taxes and city
franchise fees as a separate line item on the bill rather than including an estimate of these
expenses in the overall revenue increase. Next is a change in the definition of Cost of
Purchased Gas in the Company's Cost of Gas Clause to reflect today's gas market
conditions and supply strategies, including the ability to purchase gas for storage to
mitigate high gas cost that can occur in the winter months. The Company has also
withdrawn the Weather Normalization Clause (WNC) as the new rate design
accomplishes the same levelizing effect on customer bills. Finally, the Company is
requesting a change to the remm check fee in the Rules of Service for reprocessing a
customer's account due to insufficient funds. Proposed tariffs that would implement the
requested changes are provided behind the tab labeled "Proposed Tariffs."
Honorable Mayor and Members
of the City Council
November 5, 2002
Page Three
Southern Union Gas Company appreciates your consideration of the requested
rate increase.
Respectfully Submitted,
SOUTHERN UNION GAS COMPANY
Eli Roberts
Measurement and Meter Reading Supervisor
South Jefferson County Area
SOUTHERN UNION GAS COMPANY
Bobby Egnriquez ~/
Acting Director of Operation
Gulf Coast Region
RATE CASE SUMMARY
MAJOR CHANGES SINCE THE LAST RATE CASE
Southern Union Gas Company's ("SUG" or "Company's") last rat~ increase for the
South Jefferson County Service Area was based on financial information for the twelve
month period ended June 1991. The current request of $518,950, based on the twelve
months ended March 2002, amounts to a 5.78 percent increase in overall revenues. By
contrast, the Consumer Price Index has increased by 34.7 percent during that same time
period. Exhibit 1 summarizes the changes in rate base, expenses and revenues since the
last rate case.
plant
Since the last rate case in the South Jefferson County Service Area in June 1991,
Southern Union has invested over $7,500,000 (Exhibit 1, page 2, line 1) in additional
plant equipment, making the system more reliable, safer and more efficient. In reflecting
this investment in plant in new rates, the resulting increase in required return (Exhibit 1,
page 1, line 3) is mitigated by the Company's lower cost of capital, or rate of return, as
compared to the last case. The Company's requested rate of return in this case is 1.64
pement less then the approved rate in the previous rate case.
Expense Changes Related to the Increase in Plant
Exhibit 1, page 1 shows increases since the last rate case in depreciation expense (line 4)
and federal income taxes (line 10). These expense changes are primarily related to the
increase in plant investment.
Revenue
Since the last rate case, the Company has experienced a decrease in both the number of
customers and the average usage per customer. In 1991, there were 32,213 residential
customers using, on average, 47 Ccf per month. Currently, there are 31,514 South
Jefferson County residential customers using, on average, 35 Ccf per month. This
decrease in average usage per customer is a common phenomenon and is due, among
other things, to better insulated housing and more energy-efficient appliances. The
combination of fewer customers using less gas means that the Company currently
distributes less gas than it did eleven years ago. Thus, the 'Company would hhve to
increase its rate per Ccfin order to recover even the same level of costs.
RATE DESIGN
The proposed revenue increase has been spread among the customer classes by the
percentage of total test year as adjusted revenue they currently make up.
In the proposed rate design, the customer charge has been increased to capture more of
the revenue requirement from each class through this fixed monthly charge. The higher
customer charge allows the Company to decrease the volumetric usage rate, eliminate the
difficult to understand step rate structure and spread the increase more equitably to both
winter and summer months. .Under this new rate design, South Jefferson County
customers pay less during the winter when usage and customer bills are generally higher.
In addition to the higher customer charge, we have included the first 200 Ccf of
residential customer usage at no additional charge. This will allow approximately 98% of
South Jefferson County residential customers to pay no more than the $13.10 monthly
customer charge in any given month for sen, ice. This higher customer charge and free
usage has several benefits over the current rate design. First, it helps levelize customer
bills every month by providing for a consistent charge every month. The average
monthly residential customer usage is 35 Ccf per month, meaning that the average
customer w!ll pay the same amount for service in August and in January. Second, the
impact of the rate increase will be realized in the summer months when customer bills are
generally lower. In fact, the proposed rate design will reduce the average customer's
winter bills by an average of $3.55. In addition, the higher customer charge allows
stability in customer bills when currently colder then normal temperatures can have large
impacts on customer's winter bills.
An additional benefit to the proposed rate design is in the elimination of the difficult to
understand step rates currently in place. All customer class rates have been designed
around a customer charge and either free usage and an additi6nal charge over th6 free
amount or a one step rate for all Ccf consumed during the billing month. The average
monthly customer impact is outlined in Exhibit 2.
OTHERPROPOSED CHANGES
The Company proposes to collect, state gross receipts taxes and city franchise fees as a
line item on the bill rather than including an estimate of these expenses in the overall
revenue increase. As set forth in the proposed tariffs, the actual tax rates paid by the
Company will be added to the cost of service rates for purposes of calculating customers'
bills. In this way, customers will pay, and the Company will collect, no more and no less
than the current rates for state gross receipts taxes and city franchise fees. Proposed base
usage rates for each customer class no longer include the collection of these taxes and
fees.
The Company proposes to revise the definition of the Cost of Purchased Gas in its Cost
of Gas Clause. The current tariff provisions have not been revised since 1992 when all
service related to the purchase and delivery of gas were provided by the pipeline. In
today's market, however, the Company secures gas l~om various suppliers and separately
arranges for delivery to the city gate. The proposed definition for the Cost of Purchased
Gas has been updated to reflect today's gas market conditions and supply strategies. The
Cost of Gas Clause has also been changed to allow for storage of gas, helping to mitigate
3
the price o? gas that can increase in the winter months. Finally, the Company proposes a
change to the return check fee in the Rules of Service for reprocessing a customer's
account due to insufficient funds.
CONCLUSION
It has been over eleven years since the last rate case in the South Jefferson County
Service Area. Since that time the Company has invested over $7,500,000 in the South
Jefferson County system. While this increase in plant and plant-related expenses must be
reflected in new rates, the resulting required revenue increase il substantially less than the
34.7 percent increase in consumer prices generally since the last case.
The size of the requested rate increase is mitigated by the fact that the Company has
reduced operating expenses during the past eleven years and by the lower rate of return
that the Company is requesting compared to the last rate case. The Company's operating
efficiency has enabled it to delay filing a rate case in the South Jefferson County Service
Area for several years, despite its ongOing plant investment.
The following section presents the South Jefferson County Service Area revenue
requirement calculation in detail. The Company has followed methodologies consistent
with those approved in the last rate case. The Company believes the revenue increase to
be reasonable and requests that the proposed rates become effective thirty-five (35) days
after today's filing.
4
SOUTHERN UNION GAS
SOUTH JEFFERSON COUNTY SERVICE AREA
'I3NELVE MONTHS ENDED MA~CH 31, 2002
Exhibit
Page
COMPARISON OF REVENUE REQUIREMENT TO PRIOR RATE CASE
PRIOR CASE
LINE YEAR ENDED
NO. DESCRIPTION JUNE 1991
1 Rate Base
2 Rate of Return
3 Required Return
,CURRENT CASE
YEAR ENDED
MARCH 2002 DIFFERENCE
(a) (b) (c)
$11,119,191 $14,50~,855 '$3,382,664
11.383% 9.743%
$1,265,698 $1,412,916 $147,218
Depreciation & Amortization Expense
Taxes Other Than Income Taxes
interest on Customer Deposits
513,691 789,576 275,885
469,631 431,955 (37,676)
16,678 28,304 11,626
Distribution Expense
8 Customer Accounts Expense
9 Administrative and General Expense
10 Federal IncomeTax
11 Revenue Requirement before Gross-ups
12 Test Year Adjusted Revenue
13 Revenue Deficiency
Gross-up for Revenue Related Expenses:
14 Uncollectible Expense
15 Total
16 Total Base Rate Revenue Deficiency
17 Total Base Rate Revenue Requirement (Line 11 + Line 15)
1,577,273 1,234,230 (343,043)
1,181,573 857,966 (323,607)
1,293,594 1,269,583 (24,011)
299,029 435,450 136,421
$6,617,167 $6,459,980 ($157,187)
(6,617,167) (5,947,518) 669,649
$0 $512,463 $512,463
Factors:
0.0125002
0.0125002 0
$0
$6,617,167
6,487 6,487
$518,950 $518,950
$6,466,468 ($150,699)
SOUTHERN UNION GAS
SOUTH JEFFERSON COUNTY SERVICEAREA
TWELVE MONTHSENDED MARCH31,2002
COMPARISON OF RATE BASE TO PRIOR RATE CASE
Exhibit 1
Page 2
LINE
NO. DESCRIPTION
I Gross Plant in Service
2 Net Depreciation & Amortization Reserves
3 Net Plant in Service
PRIOR CASE
CURRENT CASE
YEAR ENDED YEAR ENDED
JUNE 1991 MARCH 2002 DIFFERENCE
(a) (b) (c)
$19,475,509 $26,992,851 $7,517,342
(6,419~422) (10,408,048) (3,988,626)
$13,056,087 $16,584,803 $3,528,716
4 Materials and Supplies Inventory
5 Prepayments
6 Cash Working Capital
7 Customer Deposits
8 Customer Advances
9 Contributions in Aid of Construction
10 Accumulated Deferred Taxes
32,648 57,858 25,210
69,312 85,381 16,069
(82,594) 0 82,594
(247,833) (471,741) (223,908)
(35,801) (66,955) (31,154)
(78,930) (349,293) (270,363)
(1,593,698) (1,338,200) 255,498
11 Total Rate Base $11,119,191 $14,501,855 $3,382,664
Exhibit 2
SOUTHERN UNION GAS
SOUTH JEFFERSON COUNTY SERVICE AREA
T~NELVE MONTHS ENDED MARCH 31, 2002
CUSTOMER BILL IMPACT
RESIDENTIAL
Average Bill
Average January Bill
MONTHLY AT AT
USAGE CURRENT PROPOSED
(Ccf) RATES RATES
35.23 $ 29.96 $ 31.69 $
82.43 $ 60.74 $ 55.49 $
COMMERCIAL
Average Bill 169.04 $ 122.64 $ 110.47 $
Average January Bill 256.77 $ 181.89 $ 154.70 $
PUBLIC AUTHORITY
Average Bill
Average January Bill
PAROCHIAL SCHOOL
Average Bill
Average January Bill
$ %
CHANGE CHANGE
PUBLIC SCHOOL
Average Bill
Average January Bill
1.73 5,8%
(5.26) -8.7%
(12.16) -9.9%
(27.20) -15.0%
213.90 $ 149.27 $ 123.78 $
482.88 $ 321.92 $ 259.37 $
(25,50) -17.1%
(62.55) -19.4%
61.61 $ 68.23 $ 74.78 $
222.93 $ 181.42 $ 173.11 $
6.55 9.6%
(8.31) -4.6%
629.67 $ 452.41 $ 476.14 $
1,602.88 $ 1,112.99 $ 1,153.12 $
23.74 5.2%
40.12 3.6%
NOTE: Bills Computed With Average Test Year PGA (Includes COG and Taxes)
Exhibit 3
Southern Union Gas
South Jefferson County Service Area
Twelve Months Ended March 31, 2002
Residential Bill Comparison
Proposed Rate Design (Normal Weather)
$
Current Proposed ChanRe Chanqe
December $ 42.47 $ 41.35 $ (1,12) -3%
January $ 60.74 $ 55.49 $ (5.25) -9%
February $ 56,35 $ 52.09 $ (4.26) -8%
Average $ 53.19 $ 49.64 $ (3.55)
(B) (A vs B)
Vol. Only Rate Design (Normal Weather)
$ % $ %
Current Volumetric Chanqe Chan~e Impact impact
42.47 $ 44.33 $ 1.86 4% $ 2.98 7%
60.74 $ 63.56 $ 2.82 5% $ 8.07 15%
56.35 $ 58.9;~ $ 2,58 5% ' $ 6.84 13%
53.19 $ 55.60 $ 2.41 $ 5.96 12%
Vol. Onty Rate Design (10% Colder Weather)
Proposed Rate Design (10% Colder Weather)
$ %
Current Pmoosed Chanqe ChanRe
December $ 46,02 $ 43.26 $ (2.76) -6%
January $ 66.11 $ 58.81 $ (7.30) -11%
February $ 61~28 $ 55.07 $ (6.21) -10%
Average $ 57.80 $ 52.38 $ (5.42)
$ % $ %
Current Volume~c Chanqe Chanfle Impact Impact
$ 46.02 $ 48.06 $ 2.04 4% $ 4.80 11%
$ 66.11 $ 69.21 $ 3.10 5% $ 10.40 18%
$ 6t.28 $ 64.12 $ 2.84 5% $ 9,05 16%
$ 57.80 $ 60.46 $ 2.66 $ 8.08 15%
FILING SCHEDULES
Summary of Revenue Requirement
The attached filing schedules, based on a test year ended March 31, 2002, .support the requested
base rate increase. A test year is a recent, representative twelve-month period on which the
required rate increase is based. Certain adjustments to test year expenses and revenues are usually
necessa~ in order to make the test year representative of ongoing conditions when the new rates
will be in effect.
Schedule A, line 16 shows that base revenues at present rates in Southem Union Gas Company's
("Company") South Jefferson County Service Area are deficient by $518,950. The Company's
required return (Schedule A, line 3) is computed by multiplying the rate base, or its invested
capital, of $14,501,855 (Schedule A, line 1) by the required rate of return of 9.743 percent
(Schedule A, line 2). The Company's revenue requirement is composed of the required return
plus expenses (the sum of lines 4 through 10 on Schedule A). The difference between the revenue
requirement (Schedule A, line 11) and actual revenue, adjusted for known and measurable
changes (Schedule A, line 12), is the base rate revenue deficiency of $512,463 before grossing-up
for reveune-related expenses, namely uncollectible expense. The base rate revenue deficiency
after grossing-up for revenue-related expenses is $518,950 (Schedule A, line 16). In other words,
base rotes must be increased by $518750 in order to collect $512,463 since $6,487 of the increase
will not be collected because of non-payment of bills by customers.
Rate Base
The Company's rate base, or invested capital, is summarized on Schedule B. The rate base is
classified into three components: 1) plant in service, 2) other rate base items, and 3) non-investor
supplied funds.
Schedule B, lines 1 through 3 show the components of plant in service, the facilities used to
provide service to customers in the South Jefferson County Service Area. It is~by far, the largest
of the three components of rate base. Line I, Intangible Plant, contains non-physical plant. Line
2, Distribution Plant, contains the mains, services, meters and regulators used to provide gas
service. Line 3, General Plant, contains office furniture, computers, work equipment and supplies.
Schedule B, line 4, shows completed construction not classified. This account represents newly
constructed plant that was in service at test year-end. These plant items had not been booked to
appropriate plant accounts by the end of the test year due to the time required to incorporate these
mounts into the accounting records.
Line 6 of Schedule B represents the portions of plant that have been depreciated. The total
amount on line 6 is subtracted from gross plant in service to arrive at net plant in service (line 7),
or the value of facilities on which a return is to be applied.
Other rate base items appear on lines 8 and 9 of Schedule B. These rate base items represent
funds provided by investors over and above their investment in plant. In this case, they consist of
materials and supply inventory levels and prepayments. Consistent with standard ratemaking
practice, thirteen-month averages are used to calculate these amounts. These amounts represent
funds needed for day-to-day operations that require an advance cash outlay.
Since a rate of return is applied to the Company's rate base to determine the dollars needed to
cover the Company's debt service and provide a reasonable return to shareholders, the portion of
plant that is not funded by investors must he deducted in determining the Company's rate base.
Lines 10 through 13 of Schedule B represent these amounts. Lines 10, 11 and 12 are the balances
at test year end for customer deposits, customer advances and contributions in aid of construction.
These amounts represent funds provided by customers. The accumulated deferred taxes balance is
shown on line 13 of Schedule B. This balance represents the funds available to the Company as a
result of lower income taxes due to differences in accounting and taxable income. The difference
between accounting and taxable income is the result of timing differences between tax and
2
ratemaking treatment of certain expenses, primarily depreciation expense. From a ratemaking
standpoint, these reserves represent a source of interest-free funds. Since thes, e amounts are not
capital provided by investors, they, like customer-supplied funds (lines 10, 11 and 12), are used to
reduce rate base.
Schedules C, C-1 and D present plant in service, completed construction not classified and
accumulated reserves for depreciation in greater detail than is shown on Schedule B.
Cost of Capital
Schedule E details the Company's cost of capital, comprised of the interest rate on debt, the
dividend rate on preferred equity and investors' required rate of return on common equity. The
calculation presented on Schedule E is based on the gas distribution industry average capital
structure and cost rates. The use of industry average capital structure is consistent with
methodology approved by the Railroad Commission of Texas in previous rate cases.
Federal Income Tax
Schedule F shows the calculation of federal income tax. The required return is comprised of the
return for common stockholders as well as dollars to cover interest and preferred dividends. The
Company's net after tax income (line 5) is calculated by subtracting interest expense (line 4),
which is deductible for tax purposes, from the required return (line 3). Federal income tax
expense is then calculated by grossing up after-tax income and applying the federal income tax
rate. Line 12 represents the amount of federal income tax the Company will be expected to pay
after the requested rate increase is approved and if the Company actually earns its authorized rate
of return.
3
Summary of Adjusted Operating Revenues and Expenses
Schedule G provides a summary of earnings, both before and after adjustments. Common
adjustments annualize mid-year expense changes, adjust revenue to reflect normal levels of
customers and weather, and adjust expenses to reflect known and measurable changes, such as
salary increases.
Schedule G, column (a), presents the per books, or unadjusted, information for the test year.
These unadjusted test year expenses include only direct South Jefferson County Service Area
expenses and do not include any amount for regional management or for corporate gupport (or
"joint and common" expenses). Expenses incurred at the regional and corporate level are
recorded in separate accounts on the Company's books. The South Jefferson County Service
Area's allocated share of joint and common expenses appears as an adjustment to the direct test
year expenses presented in column (a). Column (b) summarizes the known and measurable
adjustments, including the allocation of joint and common expenses. Column (c) represents the
adjusted test year revenues and expenses, which result from combining column (a) and column
(b). The adjusted test year revenue and expenses in column (c) are carried forward to lines 4
through 9, and 12, of Schedule A.
Summary of Operating Revenue and Expense Adjustments
Schedule H, column b, summarizes ~e adjustments to test year revenue and expenses.
Line 1 removes the revenue associated with purchased gas costs and revenue-related taxes.
Similarly, gas costs and revenue-related taxes are excluded fi:om expenses on lines 2, 16 and 17.
These items are billed to the customer separately, are not included in cost of service rates, and do
not affect the required revenue increase.
Line 1 also provides the adjustment to reflect consumption, and thus revenue in a normal weather
year. If the test year weather is abnormally warm (or cold), then the recorded level of revenues
will be inappropriately low (or high) for setting rates. Normal weather is calculated by averaging
the number of heating degree days ("HDDs") during the previous ten years. This is compared to
the number of ~ctual HDDs during the test year, and test year volumes and the resulting revenues
are adjusted upward for an abnormally warm year and downward for an abnormally cold year.
Weather during the test year in this case was 4 percent colder than normal. Consequently, test year
volumes were adjusted downward to reflect consumption during a more' normal winter. The
adjusted volumes are priced at current volumetric rates for each customer class to determine the
adjustment amount of ($64,200), included in line 1, colunm (b).
Line 1 also includes the adjustment for changes in the number of dustomers during the test year.
During the test year, them was a decline in residential and commercial customers and a minimal
growth in public authority customers. Test year revenues are adjusted on this line to annualize the
amount of revenue for the test year end customer counts for these three classes by ($12,793).
Finally, line 1 removes Article 6060 taxes of $1,569 from transportation revenue and annualizes
revenue from one transportation customer whose contract rates changed during the test year.
Depreciation (line 14) and property taxes (line 18) are plant-related expenses which must be
annualized to reflect the expense associated with the test year end plant balance reflected in
Schedule B. This is accomplished by multiplying the depreciation and property tax rates by the
test year end plant balances. The differences between the calculated expenses and the expenses
recorded during the test year are the ~tdjustments shown on these lines.
Texas state fi:anchise tax (line 19) is required to be calculated as the greater of tax on capital or tax
on income. This amount has been annualized to reflect the expense associated with the adjusted
test year plant, expenses and revenue.
Interest on customer deposits is recorded on the CompanY's books as a corporate, or joint and
common expense, rather than a direct service area expense. Thus, the test year expense for the
service area must be increased by the annualized amount of interest on customer deposits. This is
calculated by multiplying the test year end balance of customer deposits associated with the South
Jefferson County Service Area (shown on Schedule B, line I0) by the required six percent_
customer deposit interest rate. Tiffs adjustment is shown on line 11 of Schedule H.
Line 3 shows an adjustment to payroll expenses to annualize the effect of salary increases and
positions .filled during the test year and to add an allocated portion of regional employees. The
salary expense for the majority of regional employees is recorded on the Ci)mpany's books at the
regional level and is not reflected in test year unadjusted expenses. The South Jefferson County
Service Area receives an allocation of 12.27 percent of the Region Vice President and her staff.
This staff is comprised of two administrative assistants, two accounting employees, a public
relations representative and two human resources employees. 'The South JeffersOn County
Service Area also receives an allocation of 66.13 percent of the Area Director and accountant,
located in the Gulf Coast Area. By sharing regional or district employees among service areas, the
Company is able to operate more efficiently and delay the need for rate increases.
Employee benefits (line 4), payroll taxes (line 5) and injuries and damages expense (line 6) are
employee-related expenses, which vary primarily with the number of employees or with total
salary expense. These items must be annualized to reflect the expense associated with the test
year end number of employees and the adjusted salary expense. The primary component of these
adjustments is the addition of taxes, benefits, and injuries and damages costs associated with the
regional and district employees that provide services to the South Jefferson County Service Area.
Taxes, benefits, and injuries and damages costs associated with the majority of these employees
were recorded during the test year iri separate region level accounts and must be added to the test
year unadjusted expense.
Non-payroll-related expenses of the Area Director and accountant are allocated among the South
Jefferson County Service Area in a manner similar to payroll expenses. These expenses appear on
line 25. Non-payroll-related expenses of the Region Vice President's Office are shown on line 24.
Line 9 presents the adjustment for customer service center expenses. The customer service center
provides telephone assistance to South Jefferson County Service Area customers. Customer
6
service center expenses are recorded at the division level and are not reflected in the South
Jefferson County Service Area's test year direct expenses. Thus, test year expenses must be
adjusted upward to reflect the ongoing annualized cost of providing customer service.
The adjustment for bad debts, or uncollectibles expense is shown on line 13. Uncollectibles
include only actual direct write-offs, using a three-year average of uncollectibles expense.
Line 15 presents the adjustment to reflect the South Jefferson County Service Area's allocated
share of joint and common, or corporate support, expenses. Since test year unadjusted expenses
reflect only South Jefferson County Service Area direct expenses, the adjustment On line 15
represents all joint and common operating expenses allocated to the South Jefferson County
Service Area.
In order to calculate the allocated joint and common expense, total corporate and division
expenses are analyzed by department. Expenses which are not appropriate for ratemaking, such as
lobbying expense, are eliminated. Expenses which are directly associated with one or another of
the Southern Union divisions or subsidiaries are directly assigned to the division or subsidiary.
Expenses associated with each individual employee are directly assigned or causally allocated
among the divisions and subsidiaries based on the employee's job function. For example,
corporate human resources employees are allocated among all subsidiaries and divisions based on
the number of employees. Non-employee-related expenses for each department, which have not
already been eliminated or directly 'assigned, are allocated among the divisions and subsidiaries
based on the average allocation percentages for the employees in the department. The resulting
portion of joint and common expense associated with the Southem Union Gas division.is then
further allocated among its service areas based on the number of customers in each service area.
The methodology used to allocate joint and common expenses among the service areas was
approved by the Raikoad Commission in the Company's 1998 El Paso rate case, Gas Utilities
Docket No. 8878. The South Jefferson County Service Area receives slightly over six percent of
Southern Union Gas division's share of allocated joint and common costs.
7
Base Rate Revenue at Proposed Rates
Schedule I provides a proof of revenue that applies the proposed rates to the adjusted test year
bills and volumes to demonstrate that the resulting revenue matches the total proposed revenue.
The total .base rate revenue increase shown on page 2, line 40, equals the Company's base rate
revenue deficiency, as shown on Schedule A, line 16.
8
SOUTHERN UNION GAS
SOUTH JEFFERSON COUNTY SERVICE AREA
'rWELVE MONTHS ENDED MARCH 31, 2002
SUMMARY OF REVENUE REQUIREMENT
Schedule A
LINE FROM
NO. DESCRIPTION SCHEDULE
ADJUSTED TEST
YEAR
(a)
1 Rate Base B
2 Rate of Return E
3 Required Retum
4 Depreciation & Amortization Expense G
5 Taxes Other Than Income Taxes G
6 Interest on Customer Deposits G
7 Distribution Expense G
8 Customer Accounts Expense G
9 Administrative and General Expense G
10 Federal Income Tax F
11 Revenue Requirement before Gross-ups
12 Test Year Adjusted Revenue G
13 Base Rate Revenue Deficiency
Gross-up for Revenue Related Expenses:
Factors:
14 Uncollectible Expense 0.0125002
15 Total 0.0125002
16 Total Base Rate Revenue Deficiency
17 Total Base Rate Revenue Requirement (Line 11 + Line 15)
$14,501,855
9.743%
$1,412,916
789,576
431,955
28,304
1,234,230
857,966
1,269,583
435,450
$6,459,980
(5,947,518)
$512,463
6,487
$518,950.
$6,466,468
Schedule B
SOUTHERN UNION GAS
SOUTH JEFFERSON COUN'r~SERVICE AREA
TWELVE MONTHSENDED MARCH31,~02
RATE BASE
LINE
NO.
DESCRIPTION
· FROM
SCHEDULE
ADJUSTED
TEST YEAR
(a)
GROSS PLANT IN SERVICE
I Intangible Plant
2 Distribution Plant
3 General Plant
4 Completed Construction Not Classified
5 Gross Plant in Service
6 Net Depreciation & Amortization Reserves
7 Net Plant in Service
OTHER RATE BASE ITEMS
8 Materials and Supplies Inventory
9 Prepayments
NON-INVESTOR SUPPLIED FUNDS
10 Customer Deposits
11 Customer Advances
12 Contributions in Aid of Construction
13 Accumulated Deferred Taxes
14 Total Rate Base
C
C
C
Col
D
$5,811
23,370,112
3,018,711
598,217
$26,992,851
(10,408,048)
$16,584,803
57,858
85,381
(471,741)
(66,955)
(349,293)
(1,338,200)
$14,501,855
SOUTHERN UNION GAS
SOUTH JEFFERSON COUNTY SERVICE AREA
TWELVE MONTHS ENDED MARCH 31, 2002
pLANT IN SERVICE
Schedule C
LINE
NO.
DESCRiPTiON
JOINT & COMMON TOTAL
DIRECT ALLOCATED SJC
PLANT PLANT PLANT
(a) (b) (c)
INTANGIBLE PLANT
(303) Misc. Intangible
2 Total Intangible Plant
$0 $5,811 $5,811
$0 $5,811 $5,811
DISTRIBUTION PLANT
3 (374) Land & Land Rights
4 (376) Mains
5 (378) Meas. & Reg. Station - General
6 (379) Meas. & Reg. Station - C.G.
7 (380) Services
8 (381) Meters
9 (383) House Regulators
10 (385) Indust. Meas. & Reg. Stat. Equipment
11 Total Distribution Plant
$15,567 $0 $15,567
11,062,471 0 11,062,471
230,977 0 230,977
212,463 0 212,463
8,837,549 0 8,837,549
1,891,077 0 1,891,077
274,630 0 274,630
845,378 0 845,378
$23,370,112 $0 $23,370,112
GENERAL PLANT
12 (389) Land & Land Rights
13 (390) Structures & Improvements
14 (391) Office Fumiture& Equipment
15 (392) Transportation Equipment ·
16 (393) Stores Equipment
17 (394) Tools, Shop & Garage
18 (396) Major Work Equipment
19 (397) Communication Equipment
20 (398) Miscellaneous General Plant
21 Total General plant
22
Total Plant - Adjusted Test Year
$40,035 $0 $40,035
848,009 3,520 851,529
25,641 1,406,333 1,431,975
106,449 0 106,449
3,532 0 3,532
222,560 0 222,560
24,377 0 24,377
332,719 5,333 338,052
(0) 204 204
$1,603,320 $1,415,391 $3,018,711
$24,973,432 $1,421,202 $26,394,634
Schedule C-1
SOUTHERN UNION GAS
SOUTH JEFFERSON COUNTY SERVICE AREA
'FVVELVE MONTHS ENDED MARCH 3t, 2002
COMPLETED CONSTRUCTION NOT CLASSIFIED (CCNC)
LINE
NO.
JOINT & COMMON TOTAL
DIRECT ALLOCATED SJC
DESCRIPTION CCNC CCNC CCNC
(a) (b) (c)
INTANGIBLE PLANT
1 (303) Misc. Intangible
2 Total Intangible CCNC
$1,161 $0 $1,161
$1,161 $0 $1,161
DISTRIBUTION PLANT
3 (376) Mains
4 (378) Meas. & Reg. Station - General
5 (380) Services
6 (381) Meters
7 (383) House Regulators
8 (385) Indust. Meas. & Reg. Stat. Equipment
9 Total Distribution CCNC
($83,043) $0 ($83,043)
(56) 0 (56)
507,974 0 507,974
100,414 0 100,414
37,046 0 37,046
19,135 0 19,135
$581,471 $0 $581,471
$714 $0 $714
2,985 9,707 12,692
2,179 0 2,179
$5,878 $9,707 $15,585
$588,510 $9,707 $598,217
GENERAL PLANT
10 (390) Structures & Improvements
11 (391) Office Furniture & Equipment
12 (398) Miscellaneous General Plant
13 Total General CCNC
14
Total CCNC - Adjusted Test Year
SOUTHERN UNION GAS
SOUTH JEFFERSON COUNTY SERVICE AREA
TWELVE MONTHS ENDED MARCH 31, 2002
ACCUMULATED RESERVES FOR DEPRECIATION
Schedule D
LINE
NO. DESCRIPTION
DISTRIBUTION PLANT
1 (374) Land & Land Rights
2 (376) Mains
3 (378) Meas. &Reg. Station - General
4 (379) Meas. & Reg. Station - C.G.
5 (380) Services
6 (381) Meters
7 (383) House Regulators
8 (385) Indust. Meas. & Reg. Stat. Equipment
9 Total Distribution Plant
JOINT & COMMON TOTAL
DIRECT ALLOCATED SJC
ACCUM DEPR ACCUM DEPR ACCUM DEPR
(a) (b) (c)
$1,116 $0 $1,116
5,449,972 0 5,449,972
96,569 0 96,569
85,979 0 85,979
2,925,540 0 2,925,540
469,802 0 469,802
(122,157) 0 (122,157)
372,510 0 372,510
$9,279,331 $0 $9,279,331
GENERAL PLANT
10 (390) Structures & Improvements
11 (391) Office Furniture & Equipment
12 (392) Transportation Equipment
13 (393) Stores Equipment
14 (394) Tools, Shop & Garage
15 (396) Major Work Equipment
16 (397) Communication Equipment
17 (398) Miscellaneous General Plant
18 Total General plant
19
Total Accum. Res. For Depr. - Adjusted Test Year
$172,656 ($3,404) $169,252
2,785 755,148 757,933
75,892 0 75,892
1,633 0 1,633
21,943 0 21,943
9,756 0 9,756
91,534 762 92,296
0 11 11
$376,200 $752,517 $1,128,717
$9,655,531 $752,517 $10,408,048
Schedule E
SOUTHERN UNION GAS
SOUTH JEFFERSON COUNTY SERVICE AREA
TWELVE MONTHS ENDED MARCH 31, 2002
COST OF CAPITAL
LINE
NO.
DESCRIPTION
I Long-Term Debt
2 Preferred Stock
3 Common Equity
4 Total
RATIO
(a)
0.4664
0.0152
0,5184
1.0000
COST RATE
%
(b)
7.370%
5.410%
12.000%
COMPOSITE
RATE %
(c)
3.4400%
0.0820%
6.2210%
9.7430%
Schedule F
SOUTHERN UNION GAS
SOUTH JEFFERSON COUNTY SERVICE AREA
'~NELVE MONTHS ENDED MARCH 31, 2002
FEDERAL INCOME TAX
LINE
NO. DESCRIPTION
1 Rate Base
2 Rate of Retum
3 Required Return
4 Less: Interest on Long-Term Debt (1)
5 Net After Tax Income
6 Less ITC Amortization
7 Less Excess ADFIT
8 Net
9 Gross-Up Factor [1 / (1-0.35)]
10 Net Taxable Income
11 Tax Rate
12 Federal Income Tax
13 Less ITC Amortization
14 Less Excess ADFIT Amortizati0n
15 Net IncomeTax Expense
FROM ADJUSTED
SCHEDULE TEST YEAR
(a)
B $14,501,855
E 9.74300%
$1,412,916
(498,864)
$914,052
(27,027)
(9,849)
$877,176
1.5384615
$1,3491502
35.00000%
$472,326
(27,027)
(9,849),
$435,450
Note (1)
16 Debt Component of Return
17 Total Rate Base
18 Interest on Long-Term Debt
E 3.44000%
b $14,501,855
$498,864
Schedule G
SOUTHERN UNION GAS
SOUTH JEFFERSON COUNTY SERVICE AREA
'I'~NELVE MONTHS ENDED MARCH 3t, 2002
SUMMARY OF ADJUSTED OPERATING REVENUES & EXPENSES
LINE
NO. DESCRIPTION
RECORDED
TEST YEAR ADJUSTED
DIRECT ADJUSTMENTS TEST yEAR
(a) (b) (c)
OPERATING REVENUES
I Cost of Service Revenue
2 Other Utility Revenue
3 Total Operating Revenues
4 COST OF GAS
OPERATING EXPENSES
5 Depreciation and Amortization Expense
6 Taxes Other Than Income Tax
7 Interest on Customer Deposits
8 Distribution Expense
9 Customer Account Expense
10 Administrative & General Expense
11 Total Operating Expenses
12 NET INCOME BEFORE INCOME TAXES
$14,366,576 ($8,815,200) $5,551,376
396,142 0 396,142
$14,762,717 ($8,815,200) $5,947,518
$8,163,447 ($8,163,447) $0
$693,901 $95,675 $789,576
1,232,962 (801,006) 431,955
0 28,304 28,304
1,053,942 180,288 1,234,230
537,155 320,811 857,966
420,206 849,377 1.269,583
$3,938,166 $673,449 $4,611,614
$2,661,104 ($1,325,201) $1,335,903
Schedule H
SOUTHERN UNION GAS
SOUTH JEFFERSON COUNTY SERVICE AREA
TWELVE MONTHS ENDED MARCH 3'1, 2002
SUMMARY OF OPERATING REVENUE & EXPENSE ADJUSTMENTS
LINE
NO. DESCRIPTION
RECORDED
TESTYEAR ADJUSTED
DIRECT ADJUSTMENTS TEST yEAR
OPERATING REVENUES
GasSales, Tmnspodafion& OtherUtili~ Revenue
OPERATING EXPENSES
2 Cost of Gas
3 Payroll Expense
4 Employee Benefits
5 Paymll Taxes
6 Injudes and Damages
7 Civic Activities and Contributions
8 Advertising Expense
9 Customer Call Center Expense
10 Rents and Leases
11 Interest on Customer Deposits
12 Rate Case Expense
13 Uncollectible Expense
14 Depreciation and AmortiTation Expense
15 Joint & Common Expense
16 City Franchise Tax Expense
17 Texas Gross Receipts Tax Expense
18 Ad Valorem Tax Expense
19 State Franchise Tax Expense
20 Stores Load Cleadng
21 Transportation & Work Equipment CIeadng
22 Paid Time Off Cleadng
23 Article 6060 Tax Expense
24 Regional VP Expenses
25 Area Director Expenses
26 Postage Adjustment
27 Miscellaneous Adjustments
28 Unadjusted Expenses
29
(a) (b) (c)
$14,762~717 ($8,815,199) . $5,947,518
30
Total Operating Expenses
Net Operating Revenues & Expenses (before Income Taxes)
$8,163,447 ($8,163,447) $0
817,385 185,435 1,002,820
266,131 118,293 384,424
64,935 15,107 80,042
60,745 19,860 80,604
683 (583) lO0
2,656 0 2,656
0 190,548 190,548
2,070 2,962 5,033
0 28,304 28,304
0 5,000 5,000
66,606 107,019 173,625
693,901 95,675 789,576
0 667,106 657,106
561,454 (561,454) 0
279,610 (279,610) 0
306,522 (1,205) 305,317
18,272 26,728 45,000
33,113 (7,395) 25,717
151,693 64,809 216,502
132,415 (14,209) 118,207
1,569 (1,569) 0
0 33,730 33,730
45,281 (15,333) 29,948
0 5,178 5,178
0 (10,948) (10,948)
433,127 0 433,127
$12,101,613 ($7,489,999) $4,611,614
$2,661,104 ($1,325,201) $1,335,903.
EOUTHSRN UNION GAS Schedule
SOUTH JEFFERSON COUNTY SERVtCE AREA Page t
TWELVE MONTHS ENDED MARCH 31. 2002
Ltoe
AS AS .AS REVENUE AT
PROPOSED ADJUSTED ADJUSTED ADJUSTED PROPOSED
RATES BILLS VOLUMES 'FY REV RATES
RESIDENTIAL
Custi~ne~ Charge
Volumetric Charge - Step I {Fist 200 Cct)
Volumebto Charge - Step 2 (Over 200 Ccf)
PAROCHIAL SCHOOL
9 Customer Charge
10 Volumetric Charge - AE Ccf
INDUSTI~AL
Customer Charge
Volumeb~c Charge - Stop I (Fist 500 Cc~)
Volumet~c Charge - Step 2 (Over 500 Cci)
LARGE VOLUME INDUSTRtAL
14 Customer Charge
15 Volumeb'ic Charge - All Ccf
TRANSPORTATION - COMMERCIAL
23 Customer Charge
24 Votumetric Charge - All Ccf
TRANSPORTATION - LG VOL COMMERCIAL
29 Customer Charge
30 Volumetric Charge - All Cc(
1,464,066 $
1,278.765 $ 182.723
16,o73 2,742,831 $ 543,625 $ 564,456
$
$
$ $
$
$
$
$
$
$
$ $
$
$
$ $
$
$
$ $
$
$
$
$
$
$ $
SOUT'ERN UN~ON ~ Schedule I
SOUTH JEFFERSON COUNTY SERVICE AREA Page 2
TRANSPORTATION - LG VOL PUBUC AUTHORITY
34 Volumel~ic Charge - AIl Ccf
36 FORFEITED DISCOUNTS
37 SERVICE CHARGES & OTHER REV
38 VARtANCE TO GENERAL LEDGER
39 TOTAL REVENUES
$
$
$ $
$ 286,250 $ 286,250
$ 191,619 $ 191,619
'SOUTHERN UNION GAS COMPANY RATE SCIT/~DULE NO. 1-1-INC
South Jefferson Count~ Service Area - Gulf Coast Region Page 1 of 4
I COST OF GAS CLAUSE
A. APPLICABILITY
This Cost of Gas Clause shall apply to all general service rate schedules of Southern
Union Gas Company ("The Company") in the incorporated areas of its South Jefferson
County Service Area.
B. DEFINITIONS
Cost of Gas - The rate per billing unit or the total calculation under this clause,
consisting of the commodity cost, a reconciliation component, and other purchased
gas expenses.
2. Commodity Cost - The Cost of Purchased Gas multiplied by the Purchase Sales
Ratio.
Cost of Purchased Gas - The estimated cost for gas purchased by the Company
from its supplier or the estimated weighted average cost for gas purchased by the
Company from all sources where applicable. Such cost shall include not only the
purchase cost of natural gas, but shall also include all reasonable fees for services
such as gathering, treating, processing, transportation, capacity and/or supply
reservation fees, storage, balancing, and swing services necessary for the
movement of gas to the Company's city gate delivery points.
Reconciliation Component - The amount to be returned to or recovered from
customers each month from October through June as a result of the Reconciliation
Audit.
Reconciliation Audit - Aa annual review of the Company's books and records for
each twelve month period ending with the accounting month of June to determine
the amount of over or under collection occurring during such twelve month period.
The audit shall determine: (a) the total amount paid for gas purchased by the
Company (per Section B(3) above) to provide service to its general service
customers during the period, Co) the revenues received from operation of the
provisiOns of this cost of gas clause, (c) the total amount of refunds made to
customers during the period and any other, revenues or credits received by the
Company as a result of relevant gas purchases or operation of this Cost of Gas
Clause, and (d) an adjustment, if necessary, for lost and unaccounted for gas
during the period in excess of five (5) pement of pumhases.
Supersedes Same Sheet 'Dated
August 24, 2001
Meters Read On and After
December 23, 2002
~ SOWfII]ERN UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region
RATE SCHEDULE NO. 1-1-INC
Page 2 of 4
COST OF GAS CLAUSE
(Continued)
Purchase/Sales Ratio - A ratio determined by dividing the total volumes purchased
for general service customers during the twelve (12) month period ending June 30
by the sum of the volumes sold to general service customers and the known
volumes of gas that may be otherwise accounted for, including but not limited to
Company used gas, liquid extraction, meter errors due to inabcurate calibration or
temperature fluctuations and accidental discharges of gas from the Company's
system during the same period. For the purpose of this computation all volumes
shall be stated at 14.65 psia. Such ratio as determined shall in no event exceed
1.0526 i.e. 1/(1 - .05) unless expressly authorized by the appropriate regulatory
authority.
Reconciliation Account - The account maintained by the Company to assure that
' over time it will neither over nor under collect revenues as a result of the operation
of the cost of gas clause. Entries shall be made monthly to reflect, (a) the total
amounts paid to the Company% supplier(s) for gas applicable to general service
customers as recorded on the Company's books and records (per Section B(3)
above), (b) the revenues produced by the operation of this Cost of Gas Clause, and
(c) refunds, payments, or charges provided for herein or as approved by the
regulatory authority.
8. General Service Customers - those customers served under general service rate
schedules.
C. COST OF GAS
In addition to the cost of service as provided under its general service rate schedules, the
Company shall bill each general'service customer for the Cost of Gas incurred during the
billing period. The Cost of Gas shall be clearly identified on each customer bill.
D. DETERMINATION AND APPLICATION OF THE RECONCILIATION COMPONENT
If the Reconciliation Audit reflects either an over recovery or under recovery of revenues,
such amount, plus or minus the amount of interest calculated pursuant to Section E below,
if any, shall be divided by the general service sales volumes, adjusted for the effects of
weather, growth, and conservation for the period beginning with the October billing cycle
last preceding through the June billing cycle. The Reconciliation Component so
determined to collect any revenue shortfall or to return any excess revenue shall be
applied for a nine (9) month period beginning with the next following October billing
cycle and continuing through the next following June billing cycle at which time it will
terminate until a new. Reconciliation Component is determined.
Supersedes Same Sheet Dated Meters Read On and Alter
August 24, 2001 December 2_~_,3 2002
'SOUTHERN UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region
F, AT~ ~Ct-~OULr~ NO.
Page 3 of 4
COST OF GAS CLAUSE
(Continued)
E. PAYMENT FOR FUNDS
Concurrently with the Reconciliation Audit, the Company shall determine the amount by
which the Cost of Gas was over or under collected for each month within the period of
audit. If, on the average, the Company had overcollected during the'period, it shall credit
into the Reconciliation Account during September an amount equal to the average
balance multiplied by nine percent (9%). If on the average, the Company had
undercolleeted during the period, it shall debit into the Reconciliation Account during
September an amount equal to the average balance multiplied by nine percent (9%).
SURCHARGE OR REFUND PROCEDURES
In the event that the rates and charges of the Company's supplier are retroactively reduced
and a refund of any previous payments is made to the Company, the Company shall make
a similar refund to its general service customers. Similarly, the Company may surcharge
its general service customers for retroactive payments made for gas previously delivered
into the system. Any surcharge or refund amount will be included in the Reconciliation
Account.
Refunds or charges shall be entered into the Reconciliation Account as they are collected
from or returned to the customers. For the purpose of this Section F, the entry shall be
made on the same basis used to determine the refund or charge component of the Cost of
Gas and shall be subject to the calculation set forth in Section (E) Payment for Funds,
above.
G. COST OF GAS STATEMENT
The Company shall file a Cost of Gas Statement with the Regulatory Authority by the
beginning of each billing month. (The Company shall file such initial statement as soon
as is reasonably possible). The Cost of Gas Statement shall set forth (a) the estimated
Cost of Purchased Gas; (b) that cost multiplied by the Purchase/Sales Ratio; (c) the
amount of the cost of gas caused by any surcharge or refund; (d) the Reconciliation
Component; and (e) the Cost of Gascalculation. The statement shall include all data
necessary for the Regulatory Authority to review and verify the calculation of the Cost of
Gas. The date on which billing using the Cost of Gas is to begin (bills prepared) is to be
specified in the statement.
Supersedes Same Sheet Dated Meters Read On and After
August 24, 2001 December 23, 2002
SOUTHERN UNION GAS COMPANY RATE gOII]~UL]~ ND. ~-~-]NO
South Jefferson County Service Area - Gulf Coast Region Page 4 of 4
COST OF GAS CLAUSE
(Continued)
H. ANNUAL RECONCILIATION REPORT
The Company shall file an Annual Reconciliation Report with the Regulatory Authority
which shall include but not necessarily be limited to:
1. A tabulation of volumes of gas purchased and costs incurred listed by account or type
of gas, supplier and source by month for the twelve months ending June 30.
2. A tabulation of gas units sold to general service customers and related Cost of Gas
Clause revenues.
3. A description of all other costs and refunds made during the year and their effect on
the Cost of Gas Clause to date.
This report shall be filed concurrently with the Cost of Gas Statement for October.
Supersedes Same Sheet Dated Meters Read On and ARer
Au.gust 24, 2001 December 23 2002
'SOUTHERN UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region
RATE SCHEDULE 10
RESIDENTIAL SERVICE RATE
APPLICABILiTY
Applicable to residential consumem for all purposes.
TERRITORY
Incorporated areas served in Jefferson County, Texas including Port Arthur, Port Neches, Nederland
and Groves, Texas.
COST OF SERVICE RATES
During each monthly billing period:
A Customer Charge of $13.10 plus -
First 200 Ccf ~ No Charge
All Over 200 Ccf @ $ .14427 per Ccf
OTHER ADIUSTMENTS
Cost of Gas Component: The basic rates for cost of service set forth above shall be increased by
the amount of the Cost of Gas Component for the billing month computed in accordance with the
provisions of Rate Schedule 1-1-INC.
Prompt Payment Provision: The rates set forth above are net for prompt payment. After 15 days
following rendering of the bill, an additional five (5%) percent penalty will be added if the bill has
not been paid.
Taxes: Plus applicable taxes and fees (including franchises fees) related to above.
CONDITIONS
1. Subject to all applicable laws and orders, and the Company's roles and regulations on file with the
regulatory authority.
Supersedes Same Sheet Dated Meters Read On or After
May 4, 1992 December 23, 2002
SOUTHERN UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region
RATE SCHEDULE 11
RESIDENTIAL AIR CONDITIONING SERVICE RAT. E
WITHDRAWN
Supersedes Same Sheet Dated Meters Read On and After
May 4, 1992 December 23, 2002
'SOUTHERN UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region
RATE SCHEDULE 20
COMMERCIAL SERVICE RATE
APPLICABILITY
Applicable to commercial consumers for all purposes and all other consumers not otherwise specifically
provided for.
TERRITORY
Incorporated areas served in Jefferson County, Texas including Port Arthur, Port Neches, Nederland and
Groves, Texas.
COST OF SERVICE RATES
During each monthly billing period:
A Customer Charge of $23.75 plus -
First 400 Ccf @ No Charge
All Over 400 Ccf ~ $ .14289 per Ccf
OTHER ADJUSTMENTS
Cost of Gas Component: The basic rates for cost of service set forth above shall be increased by the
mount of the Cost of Gas Component for the billing month computed in accordance with the
provisions of Rate Schedule 1-1-INC.
Prompt Pawnent Provision: The rates set forth above are net for prompt payment. After 15 days
following rendering of the bill, an additional five (5%) percent penalty will be added if the bill has
not been paid.
Taxes: Plus applicable taxes and fees (including fi'anchises fees) related to above.
CONDITIONS
1. Subject to all applicable laws and orders, and the Company's roles and regulations on file with the
regulatory authority.
Supersedes Same Sheet Dated Meters Read On and After
May 4, 1992 December 23, 2002
SOUTHERN UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region
RATE SCHEDULE 21
COMMERCIAL AIR CONDITIONING SERVICE RATE .
WITHDRAWN
Supersedes Same Sheet Dated Meters Read On and After
May 4, 1992 December 23, 2002
'SOUTHERN UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region
RATE SCHEDULE 22
LARGE VOLUME COMMERCIAL SERVICE RATE
APPLICABILITY
Applicable to any large volume commercial gas consumers who have taken or will take and pay for gas
service unde~ this large volume rate for not less than twelve consecutive months.
TERRITORY
Incorporated areas served in Jefferson County, Texas including Port Arthur, Port Neches, Nederland
and Groves, Texas.
COST OF SERVICE RATES
During each monthly billing period:
A Customer Charge of $300.00 plus -
All Ccfper monthly billing @ $ .14289 per Ccf
OTHER ADJUSTMENTS
Cost of Gas Component: The basic rates for cost of service set forth above shall be increased by the
amount of the Cost of Gas Component for the billing month computed in accordance with the
provisions of Rate Schedule 1-1-1NC.
Prompt Payment Provision: The rates set forth above are net for prompt payment. After 15 days
following rendering of the bill, an additional five (5%) percent penalty will be added if the bill has
not been paid.
Taxes: Plus applicable taxes and fees (including franchises fees) related to above.
CONDITIONS
1. Subject to all applicable laws and orders, and the Company's roles and regulations on file with the
regulatory authority.
Supersedes Same Sheet Dated Metem Read On and After
February 13, 1992 December 23, 2002
SOUTHERN UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region RATE SCHEDULE 28
'PAROCHIAL SCHOOL AIR CONDITIONING SERVICE RATE
WITHDRAWN
Supersedes Same Sheet Dated Meters Read On and After
February 13,199Z December 23, 2002
'SOUTHERN UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region
RATE SCHEDULE 29
PAROCHIAL SCHOOL SERVICE RATE
APPLICABILITY
Applicable to gas used in parochial schools.
TERRITORY
Incorporated areas served in Jefferson County, Texas including Port Arthur, Port Neches, Nederland
and Groves, Texas.
COST OF SERVICE RATES
During each monthly billing period:
A Customer Charge of $35.00 plus -
All Ccf per monthly billing ~ $ .09911 per Ccf
OTHER ADJUSTMENTS
Cost of Gas Component: The basic rates for cost of service set forth above shall be increased by the
mount of the Cost of Gas Component for the billing month computed in accordance with the
provisions of Rate Schedule 1-1-INC.
Prompt Payment Provision: The rates set forth above are net for prompt payment. After 15 days
following rendering of the bill, an additional five (5%) percent penalty will be added if the bill has
not been paid. ,
Taxes: Plus applicable taxes and fees (including franchise? fees) related to above.
CONDITIONS
1. Subject to all applicable laws and orders, and the Company's roles and regulations on file with the
regulatory authority.
Supersedes Same Sheet Dated Meters Read On and After
February 13, 1992 December 23, 2002_
SOUTHERN UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region
RATE SCHEDULE 30
INDUSTRIAL SERVICE RATE
APPLICABILITY
Applicable to industrial consumers for all purposes.
.TERRITORY
Incorporated areas served in Jefferson County, Texas including Port Arthur, Port Neches, Nederland
and Groves, Texas.
COST OF SERVICE RATES
During each monthly billing period:
A Customer Charge of $41.15 plus -
First 500 Ccf ~ No Charge
All Over 500 Ccf ~ $ .21028 per Ccf
OTHER ADJUSTMENTS
Cost of Gas Component: The basic rates for cost of service set forth above shall be increased by
the amount of the Cost of Gas Component for the billing month computed in accordance with
the provisions of Rate Schedule 1-1-INC.
Prompt Pa~'~ent Provision: The rates set forth above are net for prompt payment. After 15 days
following rendering of the bill, an additional five (5%) percent penalty will be added if the bill
has not been paid.
.Taxes: Plus applicable taxes and fees (including franchises fees) related to above.
CONDITIONS
1. Subject to all applicable laws and orders, and the Company's roles and regulations on file with the
regulatory authority.
Supersedes Same Sheet Dated Meters Read On and After
February 13, 1992 December 23, 2002
'SOUTHERN UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region
RATE SCHEDULE 31
INDUSTRIAL AIR CONDITIONING SERVICE RATE
Supersedes Same Sheet Dated Meters Read On and After
February 13, 1992 December 23, 2002
SOUTHERN UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region
RATE SCHEDULE 32
LARGE VOLUME INDUSTRIAL SERVICE RATE
APPLICABILITY
Applicable to any large volume industrial gas consumers who have taken or will take and pay for gas
service undei this large volume rate for not less than twelve consecutive months.
.TERRITORY
Incorporated areas served in Jefferson County, Texas including Port Arthur, Port Neches, Nederland
and Groves, Texas.
COST OF SERVICE RATES
During each monthly billing period:
A Customer Charge of $300.00 plus -
All Ccfper monthly billing ~ $ .21028 per Ccf
OTHER ADJIJSTMENTS
Cost of Gas Component: The basic rates for cost of service set forth above shall be increased by the
amount of the Cost of Gas Component for the billing month computed in accordance with the
provisions of Rate Schedule 1-1-INC.
Prompt Payment Provision: The rates set forth above are net for prompt payment. After 15 days
following rendering of the bill, an additional five (5%) percent penalty will be added if the bill has
not been paid.
Taxes: Plus applicabl~ taxes and fees (including fxanchises fees) related to above.
CONDITIONS
1. Subject to all applicable laws and orders, and the Company's rules and regulations on file with the
regulato~ authority.
Supersedes Same Sheet Dated Meters Read On and After
February 13, 1992 December 23, 2002
E~OUTRERi~ UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region
RATE SCHEDULE 40
PUBLIC AUTHORITY SERVICE RATE
APPLICABILITY
Applicable tO public authority consumers for all purposes.
TERRITORY
Incorporated areas served in Jefferson County, Texas including Port Arthur, Groves, Nederland and
Port Neches, Texas.
COST OF SERVICE RATES
During each monthly billing period:
A Customer Charge of $15.00 plus -
First 500 Ccf ~ No Charge
All Over 500 Ccf ~ $ .21113 per Ccf
OTHER ADJUSTMENTS
Cost of Gas Component: The basic rates for cost of service set forth above shall be increased by the
amount of the Cost of Gas Component for the billing month computed in accordance with the
provisions of Rate Schedule 1-1-INC.
Prompt Payment Provision: The rates set forth above are net for prompt payment. At, er 15 days
following rendering of the bill, an additional five (5%) percent penalty will be added if the bill has
not been paid.
Taxes: Plus applicable taxes and fee~ (including franchises fees) related to above.
CONDITIONS
1. Subject to all applicable laws and orders, and the Company% roles and regulations on file with the
regulatop~ authority.
Supersedes Same Sheet Dated Meters Read On and After
February 13, 1992 December 23, 2002
SOUTHERN UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region
RATE SCHEDULE 41
' PUBLIC AUTHORITY AIR CONDITIONING SERVICE RAT. E
WITHDRAWN
Supersedes Same Sheet Dated Meters Read On and After
February 13, 1992 December 23, 2002
'SOUTHERN UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region
RATE SCHEDULE 42
LARGE VOLUME PUBLIC AUTHORITY SERVICE RATE.
APPLICABILITY
Applicable to any large volume public authority gas consumers who have taken or will take and pay for
gas service under this large volume rate for not less than twelve consecutive months.
TERRITORY
Incorporated areas served in Jefferson County, Texas including Port A~hur, Port Neches, Nederland
and Groves, Texas.
COST OF SERVICE RATES
During each monthly billing period:
A Customer Charge of
All ccf per monthly billing
OTHER ADIUSTMENTS
$300.00 plus -
$.21113 perCcf
Cost of Gas Component: The basic rates for cost of service set forth above shall be increased by the
amount of the Cost of Gas Component for the billing month computed in accordance with the
provisions of Rate Schedule l-l-INC.
Prompt Payment Provision: The rates set forth above are net for prompt payment. After 15 days
following rendering of the bill, an additional five (5%) pement penalty will be added if the bill has
not been paid.
Taxes: Plus applicable taxes and fee~ (including franchises fees) related to above.
CONDITIONS
1. Subject to applicable laws and orders, and the Company's roles and regulations on file with the
regulatory authority.
Supersedes Same Sheet Dated Metem Read On and After
Februar~ 13, 1992 December 23, 2002
SOUTHERN UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region
Page 1 of 2
SPECIAL PUBLIC AUTHORITY GAS LIGHT SERVICE RAT. E
AVAILABILITY
Service under this rate is available only to public authorities for the installation, maintenance and
operation by 'the Company of gas lights for streets in which gas distribution facilities are located. This
rate shall not be available for groupings of less than 25 gas lights.
TERRITORY
Incorporated areas served in Jefferson County, Texas including Port Arthur, Groves, Nederland and
Port Neches, Texas.
RATES
Basic Cost of Service Rates: During each monthly billing period, for
Lighting Group A (as defined below):
for the first 50 lights installed; $2.52 per light
for all additional lights; $1.98 per light
Cost of Gas Adjustment: The basic rates for cost of service set forth above shall be increased by
the amount of Cost of Gas Adjustment for the billing month on the basis ora calculating usage of
20 Ccf per month per lamp. This clause may be amended for lamps of different usage
characteristics.
Service Charge: None.
Taxes: Plus applicable taxes and fees (including franchises fees) related to above.
CONDITIONS
1. The following definitions shall apply:
Lighting Group A includes those lights installed for the City of Port Arthur in the vicinity of Lamar
University.
2. In the event that a customer being served subject to this schedule, elects to transport gas under Rate
Schedule T-3, the normally applicable transportation customer charge shall be waived, with respect
to service subject to this schedule only.
Supersedes Same Sheet Dated
December 1, 1988
Meters Read On and After
December 23, 2002_
SOUTHERN UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region
RATE ~CHEDULE 43
Page 2 of 2
SPECIAL PUBLIC AUTHORITY GAS LIGHT SERVICE RATE
(Continued)
3. The rate stated on this schedule is for each month or fi.action thereof. No bills will be pro-rated for
any reason.
4. This service is subject to all applicable laws and orders of governmental authorities and the
Company's roles and regulations on file with the regulatoc? authorities.
Supersedes Same Sheet Dated Meters Read On and After
December 1, 1988 December 23 2002
~oUTHERN UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region
PUBLIC SCHOOL SERVICE RATE
RATE SCHEDULE 48
APPLICABILITY
Applicable to gas used in public schools.
TERRITORY
Incorporated areas served in Jefferson County, Texas including Port Arthur, Port Neches, Nederland
and Groves, Texas.
COST OF SERVICE RATES
During each monthly billing period:
A Customer Charge of $35.85 plus -
All Ccfper monthly billing ~ $ .18005 per Ccf
OTHER ADJUSTMENTS
Cost of Gas__Qg_~p_onent: The basic rates for cost of service set forth above shall be increased by the
mount of the Cost of Gas Component for the billing month computed in accordance with the
provisions of Rate Schedule 1-1-1NC.
Prompt Pawnent Provision: The rates set forth above are net for prompt payment. After 15 days
following rendering of the bill, an additional five (5%) percent penalty will be added if the bill has
not been paid.
Taxes: Plus applicable taxes and fees (including franchises fees) related to above.
CONDITIONS
1. Subject to all applicable laws and orders, and the Company's roles and regulations on file with the
regulatory authority.
Supersedes Same Sheet Dated Meters Read On and After
February 13. 1992 December 23 2002
~$OUTHERN UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region
RATE SCHEDULE 49
PUBLIC SCHOOL AIK CONDITIONING SERVICE RATE.
WITHDRAWN
SuperSedes Same Sheet Dated Meters Read On and After
February 13, 1992. December 23_~_2002
SOUTHERN UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region
RATE SCHEDULE C-1
Page 1 of 2
ELECTRICAL COGENERATION AND ENERGY CONSERVATION SERVICE RATE
APPLICABILITY
Service under this rate schedule is available to any customer who &nters into a contract
with the Company to use natural gas for the purpose of cogeneration. Cogeneration is
defined as the use of thermal energy to produce electricity with recapture of by-product
heat in the form of steam, exhaust heat, etc. for industrial process use, space heating, food
processing or other purposes.
TERRITORY
This rate shall be available throughout the Company's Jefferson County Service Area
including Port Arthur, Port Neches, Nederland, and Groves.
COST OF SERVICE RATE
During each monthly billing period:
Nov. - Apr. May - Oct.
Winter Summer
A Customer Charge of $300.00 per meter plus -_
For the first 5,000 Ccf/Month - $ .1162
For the next 15,000 Ccf/Month - $ .1107
For the next 30,000 Ccf/Month - $ .1052
All Over 50,000 CcffMonth - $ .0997
$.0930
$.0886
$.0842
$.0798
COST OF GAS
In addition to the cost of service set forth above, each customer's bill shall include the
Cost of Gas for the billing month determined in accordance with the provisions of the
Cost of Gas Clause, Rate Schedule No. 1 and l-l-INC.
OTHER ADJUSTMENTS
Taxes: Plus applicable taxes and fees (including franchise fees) related to above.
Supersedes Same Sheet Dated Meters Read On and After
February 13, 1992 (Revised) December 23, 2002
"SOUTHERN UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region
RATE SCHEDULE C-1
Page 2 of 2
ELECTRICAL COGENERATION AND ENERGY CONSERVATION SERVICE RATE
(Continued)
CONDITIONS
Gas taken under this rate shall be used exclusively for the purpose of cogeneration as
defined in the Applicability section of this rate schedule and not for other purposes.
The gas taken under this rate will be separately metered.
2. This rate will not be available for standby use.
3. For the purpose of this rate, the annual load factor must be 60 percent or greater. The
annual load factor is defined as the customer's total annual consumption divided by
the customer's peak month consumption times twelve. If less than a 60 percent load
factor occurs for a twelve month period, the rate charged will revert back to the rate
that the customer would have otherwise been served under. A continuous twelve
month period of 60 percent or better load factor must precede a return to the
cogeneration rate.
4. To qualify for the summer discounts, the customer's peak summer month's load must
be at least 75% of the customer's peak winter month's load. Failure to meet this
requirement will result in an adjustment to the customer's October bill equal to the
difference between the winter and summer rates times that years total May through
September consumption by that customer.
5. The curtailment priority of any customer served under this rate schedule shall be the
same as the curtailment priority which would pertain if gas were used directly to
provide energy for uses as defined and listed in paragraph 14.2 of the Company's
Texas Rules of Service.
6. Subject in all respects to applicable laws, rules and regulations from time to time in
effect.
Supersedes Same Sheet Dated
February 13, 1992 (Revised)
Meters Read On and After
Decem_ber 23, 2002
"SOWI'HERN UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region
I
COMPRESSED NATURAL GAS SERVICE RATE
RATE SCHEDULE CNG-1
APPLICABILITY
Service under this rate schedule is available to any customer for usage where customer
purchases natural gas which will be compressed and used as a motor'fuel. Service will be
separately metered.
TERRITORY
All areas served by the Company in its South Jefferson County, Texas Service .Area.
COST OF SERVICE RATE
During each monthly billing period:
A Customer Charge of
All Ccf per monthly billing period
$10.00 plus -
$ .0850 perCcf
COST OF GAS
In addition to the cost of service set forth above, each customer's bill shall include the
Cost of Gas for the billing month determined in accordance with the provisions of the
Cost of Gas Clause, Rate Schedule No. 1.
OTHER ADJUSTMENTS
Taxes: Plus applicable taxes and fees (including franchise fees) related to above.
CONDITIONS
1. Subject in all respects to applicable laws, rules, and regulations from time to time in
effect.
2. Delivery of gas hereunder may be interrupted or curtailed at the discretion of the
Company, in case of shortage or threatened shortage of gas supply from any cause
whatsoever, to conserve gas for residential and other consumers served.
3. The Company's Budget Billing Plan is not available to customers taking this service.
Supersedes Same Sheet Dated Meters Read On and After
February 13, 1992 December 23, 2002
SOUTHERN UNION GAS COMPANY
South Jefferson County Service Area - Gulf Coast Region
~TE 9CItEDULK ~C
WEATHER NORMALIZATION CLAUSE
Meters Read On and After
Supersedes Same Sheet. Dated
September 1, 1996 December 23, 2002
SOUTHERN UNION GAS COMPANY
South Jefferson County Service Area
Page 1 of 2
TRANSPORTATION SERVICE RATE
APPLICABILITY
Service under this rate schedule is available to any customer for the transportation Of customer owned
natural gas through the Company's South Jefferson County distribution system for use by customers
within all areas in the Company's South Jefferson County Service Area.
TERRITORY
All areas served by the Company in its South Jefferson County Service Area.
RATE
This rate shall be the sum of Part A, Part B, Part C, Part D and Part E as described below.
Part A: A customer charge of $300.00 per meter per month.
Part B:
All volumes of natural gas transported during each month in accordance with this
schedule shall be billed at the following Ccf charge:
Commemial
Industrial
Public Authority
Large Volume Commercial
Large Volume Industrial
Large Volume Public Authority
$. 14609 per Ccf
.14288 per Ccf
.13913 per Ccf
.22828 per Ccf
.20071 per Ccf
.21264 per Ccf
Part C:
Buyer shall be allowed to satisfy its lost and unaccounted for gas obligation by payment in
kind. However, if lost and unaccounted for gas is not paid for in kind, a charge will be
made each month to recover the cost of lost and unaccounted for gas associated with the
volumes of natural gas transported for the customer. This charge will be calculated by
multiplying the volume delivered to the customer by the purchase/sales ratio minus one
for the Company's South Jefferson County Service Area as calculated for the twelve-
month period ended in the previous June based on actual purchase and actual sales as
reported to the regulatory bodies. The resultant calculated lost and unaccounted for
volume'will then be multiplied by the Company's cost of purchased gas for the South
Jefferson County Service Area applicable to the billing period for which service is
rendered, plus related fees and taxes, to calculate an amount to be billed to the customer
each month. The lost and unaccounted for factor as determined above shall in no event
exceed .0526 i.e. [1/1 - .05]-1 and must fall within the range of zero (0) to 5.26%.
Supersedes Same Sheet Dated Meters Read On and After
August 24, 2001 December 23 2002
SOUTHERN UNION GAS COMPANY
South Jefferson County Service Area
RATE 9L~tt~I~ULE ~-5
Page 2 of 2
Part D:
TRANSPORTATION SERVICE RATE
(Continued)
A charge will be made each month to recover the cost of gross receipts taxes paid to
the State of Texas pursuant to the provision of Article 6060 TEX. REV. CIV. STAT.
as such may be amended from time-to-time which are attributal~le to the transportation
service performed hereunder.
Part E: A charge will be made each month to recover the cost of any applicable franchise fees.
CONDITIONS
1. Subject in all respects to applicable laws, roles and regulations fi.om time-to-time in effect.
2. Transportation of customer owned natural gas hereunder shall be limited to natural gas of equal or
higher quality than natural gas currently available from the Company's supplier(s). All gas
delivered to the customer shall be deemed to be the same quality as that gas received by the
Company for transportation.
3. Transportation of customer owned natural gas hereunder is subject in all respects to terms and
conditions of the Transportation Agreement entered into between the customer and Company
prior to commencement of service and all amendments and modifications thereto.
4. With respect to the Company's capacity to deliver gas at any particular time, the curtailment
priority of any customer served under this schedule shall be the same as the curtailment priority
established for other customers served pursuant to the Company's rate schedule which would
otherwise be available to such customer.
Supersedes Same Sheet Dated Meters Read On and After
August 24, 2001 December 23, 2002.
Section 22
.~OUTH~-J~N UNION GAS COMPANY P'age z
Texas Tariff - Groves
22.1
FEES AND DEPOSITS (Continued)
FEES (Continued)
c) Special Call Out: Standard After Hours Rates
If the initiation of service order requires special call out, the Customer shall be
charged the standard rates then prevailing for after hours service work on
Customer's premises.
B. Services - Others: As stated below
Whenever service is furnished from the facilities of others and the Company must
pay any special fees to the supplying Company, the Applicant shall reimburse the
Company for such charge plus twenty percent for handling.
C. Customer Requested Meter Test: (Section 12.4)
Positive Displacement
275 cubic feet per hour or less
276 to 1500 cubic feet per hour
1501 to 3000 cubic feet per hour
3001 to 5000 cubic feet per hour
over 5000 cubic feet per hour
Char.qe
$15.00
20.00
25.00
35.00
50.00
Orifice Meters
All sizes
D. Returned Checks: (Section 13.5)
$ 30.00
$ 25.00
Accounts for which payment is made using checks which are returned by a bank for
any reason may be charged a returned check fee for each occurrence.
E. Collection Fee: (Section 18.2) $ 5.00
Charged to any Customer whose failure to respond to a termination notice
necessitates the dispatch of a Company representative who attempts collection of
payment from Customer.
Supersedes Same Sheet Dated
February 1, 1989
Meters Read On and After
pecember 23 2_,~.Q~002
SOUTHERN UNION GAS COMPANY Section 22
Texas Tariff- Nederland Page 2
22.1
FEES AND DEPOSITS (Continued)
FEES (Continued)
c) Special Call Out: Standard After Hours Rates
If the initiation of service order requires special call out, the Customer shall be
charged the standard rates then prevailing for after hours service work on
Customer's premises.
B. Services - Others:
As stated below
Whenever service is furnished from the facilities of others and the Company must
pay any special fees to the supplying Company, the Applicant shall reimburse the
Company for such charge plus twenty percent for handling.
C. Customer Requested Meter Test: (Section 12.4)
Positive Displacement
Char.qe
275 cubic feet per hour or less
276 to 1500 cubic feet per hour
1501 to 3000 cubic feet per hour
3001 to 5000 cubic feet per hour
over 5000 cubic feet per hour
$15.00
20.00
25.00
35.00
50.00
Orifice Meters
All sizes
$ 30.00
D. Returned Checks: (Section 13.5)
$ 25.00
Accounts for which payment is made using checks which are returned by a bank for
any reason may be charged a returned check fee for each occurrence.
E. Collection Fee: (Section 18.2)
$ 5.00
Charged .to any Customer whose failure to respond to a termination notice
necessitates the dispatch of a Company representative who attempts collection of
payment from Customer.
Supersedes Same Sheet Dated
February 1, 1989
Meters Read On and After
December 23, 2002
~OUTP-ARN UNION GAS COMPANY ~tigFI 22
Texas Tadff - Port Arthur Page 2
22.1
FEES AND DEPOSITS (Continued.~
FEES (Continued}
c) Special Call Out: Standard After Hours Rates
If the initiation of service order requires special call out, the Customer shall be
charged the standard rates then prevailing for after hours service work on
Customer's premises.
B. Services - Others: As stated below
Whenever service is furnished from the facilities of others and the ComPanY must
pay any special fees to the supplying Company, the Applicant shall reimburse the
Company for such charge plus twenty percent for handling.
C. Customer Requested Meter Test: (Section 12.4)
Positive Displacement
275 cubic feet per hour or less
276 to 1500 cubic feet per hour
1501 to 3000 cubic feet per hour
3001 to 5000 cubic feet per hour
over 5000 cubic feet per hour
Charge
$15.00
20.00
25.00
35.00
50.00
Orifice Meters
All sizes
$ 30.00'
D. Returned Checks: (Section 13.5) $ 25.00
Accounts for which payment is made using checks which are returned by a bank for
any reason may be charged a retumed check fee for each occurrence.
E. Collection Fee: (Section 18.2) $ 5.00
Charged to any Customer whose failure to respond to a termination notice
necessitates the dispatch of a Company representative who attempts collection of
payment from Customer.
Supersedes Same Sheet Datbd
February 1, 1989
Meters Read On and After
pecember 23, 2002
COUTI-~,ERN UN}ON GAS COMPANY ~tigr~ 22
Texas Tariff - Port Neches Page 2
22.1.
FEES AND DEPOSITS (Continued)
FEES (Continued)
c) Special Call Out: Standard After Hours Rates
If the initiation of service order requires special call out, the Customer shall be
charged the standard rates then prevailing for after hours service work on
CustomeYs premises.
B. Services - Others: As stated below
Whenever service is furnished from the facilities of others and the ComPanY must
pay any special fees to the supplying Company, the Applicant shall reimburse the
Company for such charge plus twenty percent for handling.
C. Customer Requested Meter Test: (Section 12.4)
Positive Displacement
275 cubic feet per hour or less
276 to 1500 cubic feet per hour
1501 to 3000 cubic feet per hour
3001 to 5000 cubic feet per hour
over 5000 cubic feet per hour
Charqe
$15.00
20.00
25.00
35.00
50.00
Orifice Meters
All sizes
D. Returned Checks: (Section 13.5)
$ 30.00
$ 25.00
Accounts for which payment is made using checks which are returned by a bank for
any reason may be charged a returned check fee for each occurrence.
E. Collection Fee: (Section 18.2) $ 5.00
Charged 'to any Customer whose failure to respond to a termination notice
necessitates the dispatch of a Company representative who attempts collection of
payment from Customer.
Supersedes Same Sheet Datbd Meters Read On and After
February 1, 1989 December 23, 2002
EXHIBIT "A-2"
EXHIBIT "A-2"
(a) Tariff Schedules and a copy of any contracts to
supply or transport gas to customers in Port Arthur
since the last rate case
(b) Copies of all Resolutions or Ordinances approving
the Rate or Tariff Schedules.
(c) Copies of all Railroad Commission Orders approving
the Rate Schedules.
(d) Amount of monies that have been paid by all
customers in excess of rates or tariffs that were
approved by the City of Port Arthur by Resolution
or Ordinance or approved by an order of the
Railroad Commission.
(e) Volume of gas sold and the amount of revenue
(f)
received by any wholly owned affiliate, subsidiary
or related company, i.e., Mercado, to the
residences, businesses or customers in Port Arthur.
Amount of franchise fees paid with a delineation of
any revenue from Southern Union Gas, Mercado or any
other wholly owned affiliate, subsidiary or related
company that was excluded from these calculations
as it pertains to gas and ancillary services
delivered to the residences, businesses and
z.po5302 4
customers in the City.
(g) Any and all complaints or favorable comments by
members of the public as to the quality of service
of Southern Union Gas.
(h) Documentation which shows that Southern Union Gas
complied with Rule 7.315(c) (9) of Title 16 of the
Texas Administrative Code when it made its tariff
filings with the Railroad Commission. This would
include documentation that it was in compliance
with the City Ordinance or the City Charter when it
raised the rates or filed the tariffs.
(i) Documentation as to the calculations of the
(j)
(k)
"hypothetical marketer-price sales to transport
customers", as delineated in the April 26, 2001
letter of Andre' Bouchard of Southern Union Gas.
This would include, but not be limited to, all
periods of time that this was calculated for,
number of customers, volume of usage and names of
major customers.
Documentation as to the calculation of
miscellaneous "other gas services revenue" as
delineated in the April 26, 2001 letter of Andre'
Bouchard of Southern Union Gas.
Impact of the consumers if there
is a delay in the
implementation of the new rates.
(1) Historical impact of the weather clause and how it will
be impacted by the new tariffs.
(m) Volume of gas per year that is sold by Southern Union
Gas to any residence, business or customer in the
(n)
extraterritorial jurisdiction of the City, with
information on the rates charged, gas revenues
obtained, and other gas services revenue.
Information concerning the test year that was used by
Southern Union Gas to evaluate or project their
prospective revenue as stated in their November 5, 2002
rate filing.