HomeMy WebLinkAboutPO5576: TEXAS GAS SERVICEinteroffice
MEMOP tNDUM
To: Mayor, City Council, City Manager
From: Mark T. Sokolow, City Attorney /~ ~t~~--'/
Date: December 2, 2005
Subject: P. O. No. 5576 - December 6, 2005 Council Meeting
Attached is P. O. 5576 as it pertains to acting on the
requested rate increase of Texas Gas Service (a division on
ONEOK, Inc.)
MTS:ts
Attachment
CC: VIA FACSIMILE (409)963-7133
Mr. Daniel White, Area Manager
TEXAS ~AS BERVICE
z .po5576 .memo
P. O. No. 5576
~2/02/05 ~s
0RDI~A~CE NO.
~ OI~IN~NCE ~CTIN~ ON THE REQUESTED RATE
INCREASE OF TEXAS GAS SERVICE (A DIVISION OF
ONEOK, INC.)
WHEREAS, on or about November 23, 2005, Texas Gas Service (a
Division of ONEOK, Inc.) filed a Statement of Intent to Change
Rates; and
WHEKEAS, Texas Gas Service (a division of ONEOK, Inc.) has
indicated that the rate increase will reflect an increase of base
revenue of $2,444,462 per year; and
WHEREAS, Texas Gas Service is also proposing a change in rate
structure per classification, as denoted in Exhibit ~A".
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR, TEXAS=
Section 1. That the facts and opinions in the preamble are
true and correct.
Section 2. That the operation of the schedule of new
charges and rates as denoted in Exhibit "B" 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 a public hearing shall be held on January
31, 2006, at 7:00 p.m. as to receive public comment on the proposed
tariff changes and any alterations suggested by the City Council.
Seet£on 4. That the city Council reserves the right to
readjust the rates as to establish just and reasonable rates.
Section 5. That the City Secretary shall send a copy of
this Ordinance to Texas Gas Service (a division on ONEOK, Inc.).
Section 6. That this ordinance shall be effective
immediately.
Section 7. That a copy of the caption of this Ordinance be
spread upon the Minutes of the City Council.
READ, ADOPTED AND APPROVED on this __ day of
, A.D., 2005, at a Regular Meeting of the City
Council of the City of Port Arthur, Texas, by the following vote:
AYES: Mayor '
Councilmembers '
;
NOES:
MAYOR
ATTEST:
CITY SECRETARY
APPROVED AS TO FORM:
CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
CITY MANAGER
EXHIBIT "A"
EXHIBIT
TEXAS GAS SERVICE
A DIVISION OF ONEOK
4201 39th Street, Port Arthur, Texas 77642
November 23, 2005
The Honorable Mayor and Members The Honorable Mayor and Membem
of the City Council of the City Council
City of Nederland City of Port Arthur
Nederland, Texas Port Arthur, Texas
The Honorable Mayor and Members The Honorable Mayor and Members
of the City Council of the City Council
City of Groves City of Port Neches
Groves, Texas Port Neches, Texas
Dear Mayor and Members of the City Council:
Texas Gas Service Company (the "Company"), a division of ONEOK, Inc.,
respectfully files this Statement of Intent to Change Rates within the Cities of Port
Arthur, Port Neches, Nederland, and Groves, 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 changes become effective in thirty-
five (35) days.
The Company's South Jefferson County Service Area ("SJCSA") includes the
Cities of Port Arthur, Groves, Nederland and Port Neches, and TGS is simultaneously
filing identical requests in each of the four cities. The data and analysis contained in the
attached schedules and narrative reflect system-wide data and therefore relate to the
Honorable Mayor and Members
of the City Council
November 23, 2005
Page 2
entire SJCSA. The attached schedules, which are part of this Statement of Intent,
demonstrate an increase in TGS's revenue requirement and a required base revenue
increase for the entire SJCSA of $2,444,462. This represents a 0.74 percent increase in
the annual revenues of TGS and a 14.0 percent increase in total adjusted annual revenue
for the South Jefferson County Service Area. In addition, as provided by law, the
Company is seeking reimbursement of all Company and City rate case expenses, which
are expected to be less than $100,000, but could be greater. The exact amount cannot be
known, of course, until the case is completed.
Since the last rate case filed in 2003, TGS has invested approximately $4,200,000
in new plant in the SJCSA in order to ensure safe, reliable, quality gas service for its
customers. About_one-third of the increase in TGS's revenue requirement is due to the
need to recover the costs associated with this investment. The Company has also devoted
increased resources to leak surveying, repair and maintenance of mains and services, and
meter repair and replacement. Like most businesses, the Company has also experienced
a sizeable increase in medical and pension costs over the last three years, along with
increases resulting fi.om higher gasoline costs such as fle6t expenses and shipping for
parts and materials. Finally, the Company proposes to eliminate the prompt payment
provision from its tariffs, which will require that its base rate revenues be increased by
about $100,000 annually to make up for the loss of forfeited discount revenues previously
classified and booked as "other revenues."
Honorable Mayor and Members of the City Council
November 23, 2005
Page 3
As you are aware, there currently exist two sets of rates within the SJCSA - those
that were approved by the City of Port Arthur in March 2003, and those that were
established by the Railroad Commission of Texas ("RRC") in G.U.D. No. 9465. With
this filing, the Company is seeking to reestablish system-wide rates. Therefore, all the
data and analysis in the filing apply fully to each city. The only schedule that reflects any
differences among the cities is the calculation of average bill impacts. All customers will
move to the same rate design, but they will change from differing rate designs depending
upon the city in which they reside. Therefore the increase in the average customer's bill
will differ from city to city. However, these differences are minor.
The Company proposes to allocate and collect the required increase from its
various customer Classes in the same proportion as current gas sales revenues. With
regard to rate design, the Company proposes to maintain the same one-step residential
and two-step commercial and public authority rate structures approved by the RRC in the
Company's most recent rate case appeal, GUD No. 9465. Furthermore, the Company
proposes to retain the Weather Normalization Adjustment clause approved by the RRC
for the cities of Nederland, Port Neches, and Groves an/l expand its applicability to
include customers in the City of Port Arthur.
The proposed rates maintain customer charges close to those currently in effect in
the City of Port Arthur. In this way, all customers in the service area will pay one set of
rates, while customers in Port Arthur will retain the winter-bill leveling effect to which
Honorable Mayor and Members
of the City Council
November 23, 2005
Page 4
they have become accustomed as a result of the somewhat higher customer charge.
Customers in Nederland, Groves and Port Neches will now benefit fi.om the rate design
which 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 those customers is spread more evenly
throughout the year. For residential customers, this leveling effect creates bills that are
more predictable throughout the year. By paying a somewhat higher but more
predictable bill in the non-winter months when usage and bills are typically lower, the
customer obtains some protection against unpredictable and potentially much higher
winter bills.
Exhibit 1, haached, shows the proposed increases to an average bill and to a
winter bill for each class of customers. As mentioned above, when moving to system-
wide rates for all customers, the bill increase is slightly different depending upon the city
in which the customer resides, because their current rates were approved at different
times and differ from one another. The much lower winter bill increase for residential
and commercial customers in Port Neches, Nederland, arid Groves demonstrates the
leveling effect, discussed above, of moving to higher customer charges. Customers
within the City of Port Arthur do not see this leveling effect in their winter bill increases
because they have already implemented the higher customer charges in their last rate
Honorable Mayor and Members
of the City Council
November 23, 2005
Page 5
Two lines on Exhibit 1 warrant additional explanation. First, public schools, line
28, will experience no increase, while parochial schools and public authority customers,
lines 17, 20 and 24, will experience a seven percent increase. This is because existing
public school rates are much higher than those of parochial schools and public authority
customers. Under the Company's proposed rate design, all of these customers will pay
the same rates. Second, Port Arthur's standard transportation volumetric rates were about
double the volumetric rates charged standard transportation customers in Port Neches,
Nederland and Groves. The proposed standard transportation rates are about half way
between. Thus, in moving to one set of system-wide rates, transportation customers in
Port Arthur will see a decrease in their bills and transportation customers in Port Neches,
Nederland and Groves will see an increase in their bills.
The Company is introducing a new transportation tariff designated "T-GEN,"
which sets forth the general terms and conditions for transportation service. This
proposal will ensure that the Company's general terms and conditions of service are
standardized among customers and will also eliminate the need to include this language
in every contract. The T-GEN tariff will also implement a inonthly balancing procedure
for transportation customers.
TGS also proposes revisions to its Cost of Gas Clause. First, sections B.5. and
B.7 have been revised and H.4. has been added to flow-through to gas sales customers
any payments received under the new transportation balancing provision. The Company
Honorable Mayor and Members
of the City Council
November 23, 2005
Page 6
also proposes to change the definition of "Cost of Purchased Gas" (B.3.) to expressly
allow the use of financial instruments to mitigate gas cost volatility.
Finally, sections B.5. and B.7. have been revised and H.5. added to allow the
Company to recover uncollectible gas costs through the cost of gas clause, rather than
through base rates. Bad debts are an unfortunate fact of business operations, the costs of
which are recovered through base rotes. However, bad debts associated with gas cost
fluctuate with the market price of gas. Because the market cost of gas has been
extremely volatile, it is difficult to include a representative level of uncollectibles, or bad
debt expense, in base rates. Recovery of charge-offs associated with gas cost in the cost
of gas clause ensures that the Company will recover the actual amount of bad debts
expense. Bad dd~to associated with non-gas costs, which are not as volatile, will
continue to be recovered via base rates. With the approval of this revision to the cost of
gas clause, that portion of the Company's bad debt associated with the cost of gas would
be removed from base rates, thereby reducing the overall annual base rate increase by
$53,390.
Honorable Mayor and Members
of the City Council
November 23, 2005
Page 7
Texas Gas Service Company appreciates your consideration of these requested
rate changes.
Respectfully Submitted,
TEXAS GAS SERVICE COMPANY
Danny D.Cgqhite
Area Manager
South Jefferson County Area
SUMMARY
EXHIBIT1
TEXAS GAS SERVICE COMPANY
SOUTH JEFFERSON COUNTY SERVICE AREA
CUSTOMER r~ILL IMPACT
USAGE CURRENT PROPOSED $ %
I RESIDENTIAL
2 Port Arthur
3 Average Bill 34.61 $ 40.40 $ 46.90 $ 6.50 16.1%
4 Average January Bill 87.65 $ 80.96 $ 94.32 $ 13.36 16.5%
5 Groves, Nederland and Port Neches
6 Average Bill 34.61 $ 41.15 $ 46.90 $ 5.75 14.0%
7 Average January Bill 87.65 $ 87.92 $ 94.32 $ 6.40 7.3%
8 COMMERCIAL
9 Port Arthur
10 Average Bill 182.95 $ 165.83 $ 198.33 $ 32.50 19.6%
11 Average January Bill 271.67 $ 233.93 $ 273.15 $ 39.22 16.8%
12 Groves, Nederland and Port Neches
13 Average Bill 182.95 $ 175.34 $ 198.33 $ 22.99 13.1%
14 Average January Bill 271.67 $ 252.21 $ 273.15 $ 20.94 8.3%
15 PUBLIC AUTHORITY
16 Port Arthur
17 Average Bill 438.55 $ 426.21 $ 456.05 $ 29.84 7.0%
18 Average January Bill 1,050.14 $ 941.65 $ 1,037.97 $ 96.32 10.2%
19 Groves, Nededand and Port Neches
20 Average Bill 438.55 $ 424.08 $ 456.05 $ 31.97 7.5%
2'1 Average January Bill 1,050.14 $ 937.66 $ 1,037.97 $ 100.31 10.7%
22 PAROCHIAL SCHOOL ~
23 Port Arthur
24 Average Bill 187.50 $ 200.22 $ 215.47 $ 15.25 7.6%
25 Average January Bill 585.86 $ 546.50 $ 596.21 $ 49.71 9.1%
26 PUBLIC SCHOOL
27 Port Arthur
28 Average Bill 438.55 $ 457.11 $ 456.05 $ (1.06) -0.2%
29 Average January Bill 1,050.14 $ 1,041.41 $ 1,037.97 $ (3.44) -0.3%
30 STANDARD TRANSPORTATION
31 Port Arthur
32 Average Bill 11,169.75 $ 2,021.99 $ 1,462.30 $ (559.69) -27.7%
33 Average January Bill 12,543.71 $ 2,232.08 ,$ 1,602.66 $ (629.42) -28.2%
34 Groves, Nederland and Port Neches
35 Average Bill 11,169.75 $ 1,144.96 $ 1,462.30 $ 317.34 27.7%
36 Average January Bill 12,543.71 $ 1,247;93 $ 1,602.66 $ 354.73 28.4%
NOTE: Bills Computed HF~h Average Test Year PGA (Includes COG and Taxes)
RATE CASE SU]VIMARY
MAJOR CHANGES SINCE THE LAST RATE CASE
Texas Gas Service Company's ("TGS" or "Company's") last rate case before the Cities
in the South Jefferson County Service Area was based on financial information for the
twelve month period ended March 2002. The appeal to the Railroad Commission that
resulted from that case was based on the twelve months ended December 2002, updated
for known and measurable changes through September 2003. The current request of
$2,444,462 is based on the twelve months ended June, 2005 and amounts to a 14.0
percent increase in overall revenues.
Plant and Plant-Related Expenses Changes
Since the last rate case in the South Jefferson County Service Area, Texas Gas Service
Company has invested about $4,200,000 in additional plant and equipment, making the
system more reliable, safer and more efficient. Approximately $756,000 of the requested
overall increase, or about thirty percent, is attributable to the increases in return,
depreciation and taxes associated with these plant additions. An additional $154,000
increase is due to a slight increase in the rate of return since the last case, from 8.42% to
8.87%.
Operating Expenses
In addition to new plant investment in South Jefferson County, the Company has
increased its expenditures for maintenance and repair of the existing system. The
Company experienced an increase of approximately $462,000 in annual expenses for leak
surveying, repair and maintenance of mains and services, and meter repair and
replacement. Furthermore, the Company has experienced increases in expenditures for
capital improvement projects and third party damages due to City sewer and street
projects.
Approximately $403,000 of the requested increase is attributable to increased payroll and
benefits costs as the Company continues to experience regular increases in cost of health
insurance, pension and other benefits. The Company's customer service center, which
provides telephone assistance to South Jefferson County Service Area customers, has
likewise experienced increases in payroll and benefits costs, resulting in about $57,000 of
additional expense for the service area. Finally, corporate overhead for the service area
has increased by approximately $293,000 also due primarily to increases in payroll and
benefits.
Revenue
In the last case, the Railroad Commission removed the prompt payment provision fi.om
some, but not all, of the Company's tariffs within the South Jefferson County Service
Area. In order to maintain consistent treatment throughout the service area, the Company
has removed the prompt payment provision fi.om its tariffs in this case. This will result in
the loss of forfeited discount revenue of approximately $117,000. Thus, an offsetting
increase in base rate revenue is required.
RATE DESIGN
The proposed revenue increase has been spread among the customer classes in the same
proportion as current gas sales revenues.
In the proposed rate design, the customer charges have been maintained closer to those
currently in effect in the City of Port Arthur. Customers in Nederland, Port Neches and
Groves, whose current rates have somewhat lower customer charges and higher
volumetric rates, will benefit fi'om the rate design. The higher customer charge allows
the Company to decrease the volumetric usage rate and spread the increase more
equitably to both winter and summer months. As a result of this rate design, South
2
Jefferson County customers will have smaller increases during the win/:er when usage and
customer bills are generally higher.
OTHER PROPOSED CHANGES
The Company proposes to implement a new transportation tariff, T-GEN, containing the
Company's General Terms and Conditions for transportation service. Much of this
language is currently contained in the customers' transportation contracts.
Implementation of the T-GEN tariff will allow the Company to remove the language
from the contracts, making them less cumbersome and ensuring consistency among all
transportation customers.
In addition, the T-GEN introduces balancing requirements for transportation customers.
Currently, if a transportation customer fails to purchase and deliver enough gas into the
system to meet its needs, the Company "carries" the imbalance for the customer to the
next month, effectively allowing the customer to borrow gas. Likewise, if a
transportation customer purchases more gas than it uses, the Company carries the
imbalance, effectiCely providing storage for the customer's excess gas. Under the T-GEN
tariff, transportation customers will be required to settle imbalances that exceed the
specified tolerance levels with the Company at the end of each month, paying for the
extra gas they used or buying back the excess gas they delivered, under a process called
"cash out." The Company proposes to revise its Cost of Gas Clause to indicate that the
cash out payments be credited to, and thereby reduce, the overall cost of gas to be paid by
the system sales customers.
The Company also proposes to revise the definition of the Cost of Purchased Gas in its
Cost of Gas Clause to allow for the use of financial instruments to mitigate the gas price
volatility and to allow for the recovery of bad debts associated with the gas costs via the
Cost of Gas Clause.
FILING SCHEDULES
FILING gCHEDULE$
Summary of Revenue Requirement
The attached filing schedules, based on a test year ended June 30, 2005, 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
necessary in order to make the test year representative of ongoing conditions when the new rates
will be in effect.
Schedule A, line 15 shows that base revenues at present rates in Texas Gas Service Company's
("Company") South Jefferson County Service Area are deficient by $2,444,462. The Company's
required return (Schedule A, line 3) is computed by multiplying the rate base, or its invested
capital, of $21,160,248 (Schedule A, line 1) by the required rate of return of 8.870 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 $2,431,964 before grossing-
up for revenue-related-expenses, namely uncollectible expense. The base rate revenue deficiency
after grossing-up for revenue-related expenses is $2,444,462 (Schedule A, line 15). In other
words, base rates must be increased by $2,444,462 in order to collect $2,431,964 since $12,498 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 rote base is
classified into three components: 1) plant in service, 2) non-investor supplied funds, and 3) other
rate base items.
Schedule B, lines 1 through 4 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 1, Intangible Plant, contains non-physical plant. Line
2, Transmission Plant contains a small amount of' transmission main used to serve customers in
the area. Line 3, Distribution Plant, contains the mains, services, meters and regulators used to
provide gas service. Line 4, General Plant, contains office furniture, computers, work equipment
and supplies.
Schedule B, line 5, 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 7 of Schedule B represents the portions of plant that have been depreciated. The total
amount on line 7 is subtracted from gross plant in service to arrive at net plant in service (line 8),
or the value of facilities on which a return is to be applied.
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 remm to shareholders, the portion of
plant that is not funded by investors must be deducted in determining the Company's rate base.
Lines 9 through 11 of Schedule B represent these amounts. Lines 9 and 10 are the balances at test
year end for customer2deposits and customer advances. These amounts represent funds provided
by customers. The accumulated deferred taxes balance is shown on line 11 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 ratemaking treatment of certain
expenses, primarily depreciation expense. From a ratemaking standpoint, these reserves represent
a source of interest-free funds. Since these amounts are not capital provided by investors, they,
like customer-supplied funds (lines 9 and 10), are used to reduce rate base.
Other rate base items appear on lines 12, 13 and 14 of Schedule B. Lines 12 and 13, Materials
and Supply Inventory and Prepayments, represent funds provided by investors over and above
their investment in plant. Consistent with standard ratemaking practice, thirteen-month averages
are used to calculate these amounts. Finally, line 14 shows Cash Working Capital, or the funds
needed on-hand for day to day operations.
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 and
investors' required rate of return on common equity. The capital structure and debt cost presented
on Schedule E is based on the Company's actual capital structure and cost of debt. The cost of
equity, which by its nature must be estimated, is based on an analysis by Dr. Donald Murray of C.
H. Guernsey and Company in Oklahoma City, Oklahoma.
Federal Income Tax
Schedule F shows the calculation of federal income tax. The required retum is comprised of the
remm for common stockholders as well as dollars to cover interest on debt. 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 remm (line 3). Federal income tax expense is then calculated
by grossing up after-tax income and applying the federal income tax rate. Line 13 represents the
amount of federal ind0me 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.
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 area management or foe division and corporate
support. Expenses incurred at the area, division and corporate levels are recorded in separate
accounts on the Company's books. The South Jefferson County Sercice Area's allocated share of
area, division and corporate 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 area, division and corporate expenses. Column (c) represents the
adjusted test year revenues and expenses, which result from combining colunm (a) and column
Co). The adjusted test year revenue and expenses in column (c) are carried forward to lines 4
through 9, and 12, of Schedule A.
Page 1 of Schedule G presents the test year adjusted expenses by type of adjustment, while pages
2 and 3 present the same information by account number. The totals on page 1, line 29 equal the
totals on page 3, line 70.
Detail of Operating Revenue and Expense Adjustments
Schedules G-1 through G-26 detail the adjustments to test year revenue and expenses.
Schedule G-1 remove~ the revenue and expense associated with purchased gas costs. Cost of gas
is billed to the customer separately, is not included in cost of service rates, and does not affect the
required revenue increase.
Schedule G-2 provides a number of adjustments to gas sales revenue. First, because rates
changed during the test year, it is necessary to calculate revenue at the year-end rates for the
whole year. Line 4 presents this annualization adjustment.
Line 6 presents 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 actual 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.
4
Weather during the test year in this case was 11 percent warmer than normal. Consequently, test
year volumes were adjusted upward 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 mount of $57,711, included on line 6.
Line 5 simply removes the revenue adjustment accumulated during the year under the Weather
Normalization Adjustment prior to calculating the weather adjustment described above.
Line 7 includes the adjustment for changes in the number of customers during the test year.
During the test year, there was a decline in residential, commercial and 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 ($5,258).
Finally, line 8 adjusts revenues to reflect the continuing downward trend in usage per customer.
Schedule G-3 presents adjustments to transportation revenue and to miscellaneous revenue and
fees. Transportation r~venue is adjusted to annualize revenue from a new transportation customer,
and to annualize the revenues of those customers whose contract rates changed during the test
year. Line 8 reflects the removal of forfeited discount revenue, since the Company has proposed
to eliminate from its tariffs the prompt payment provision.
Schedule G-4 shows an adjustment to South Jefferson County direct payroll expenses to annualize
the effect of salary increases and positions filled during the test year. Employee benefits
(Schedule G-5), payroll taxes (Schedule G-6) and injuries and damages expense (Schedule G-7)
are employee-related expenses, which vary primarily with the number of employees or with total
salary expense. These items must be adjusted to reflect the expense associated with the test year
end number of employees and the adjusted salary expense at current cost rates.
Schedule G-8 removes expenses associated with certain civic activities or charitable contributions
which are not properly includable in rates. Schedule G-9 demonstrates that test year advertising
expense falls within the limitations imposed by Railroad Commission rules.
Schedule G-10 presents the adjustment for customer service center expenses. The customer
service center provides telephone assistance to South Jefferson County Service Area customers.
Customer 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.
Interest on customer deposits (Schedule G-12) is recorded on the Company's books as a division
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 9) by the required six percent customer deposit
interest rate.
Schedule G-13 reflects an estimate of Company and City-incurred rate case expenses for this rate
case settled at the local level.
The adjustment for bad debts, or uncollectibles expense, is shown on Schedule G-14.
Uncollectibles includ~"0nly actual direct write-offs, using a three-year average of uncollectibles
expense.
Depreciation (Schedule G-15) is a plant-related expense which must be annualized to reflect the
expense associated with the test year end plant balances reflected in Schedules C and C-1. This is
accomplished by multiplying the depreciation rates by the test year end plant balances. The
difference between the calculated expense and the expense recorded during the test year is the
adjustment.
Schedule G-16 presents the adjustment to reflect the South Jefferson County Se~ice Arm's
allocated share of corporate and division support expenses. Since test year unadjusted expenses
reflect only South Jefferson County Service Area direct expenses, the adjustment in Schedule G-
l6 represents the addition of all corporate and division operating expenses allocated to the South
Jefferson County Service Area, except customer service center expenses (Schedule G-10) and
corporate and division depreciation expense (G-15).
6
In order to calculate the allocated expense, total corporate and division expenses are analyzed by
department. Expenses which are not appropriate for ratemaking, such as lobbying expense, are
eliminated. Corporate expenses which are directly associated with one or another of the ONEOK
divisions or subsidiaries are directly assigned to the division or subsidiary. Corporate expenses
which have not already been eliminated or directly assigned are allocated among the divisions and
subsidiaries based on a three-factor formula of gross plant and investment, operating income, and
labor expense approved by the Railroad Commission in the last rate case. The resulting portion of
ONEOK corporate expense associated with the Texas Gas Service division is then combined with
Texas Gas Service division expense and allocated among TGS service areas based on the number
of customers in each service area. The methodology used to allocate corporate and division
expenses among the service areas was approved by the Railroad Commission in the Company's
1998 E1 Paso rate case, Gas Utilities Docket No. 8878, and the Company's 2003 South Jefferson
County rate case, Gas Utilities Docket No. 9465. The South Jefferson County Service Area
receives slightly over six percent of Texas Gas Service division's share of corporate and division.
Schedules G-17, G-18 and G-24 remove the expense associated with city franchise fees, state
gross receipts tax and state Article 6060 tax. These revenue-related taxes and fees are billed to the
customer as a separat/~ line item, are not included in cost of service rates, and do not affect the
required revenue increase.
Property taxes (Schedule G-19) are a plant-related expense which must be annualized to reflect
the expense associated with the test year end plant balances reflected in Schedules C and C-1.
This is accomplished by multiplying the current effective property tax rate by the test year end
plant balances. The difference between the calculated expense and the expense recorded during
the test year is the adjustment.
Texas state franchise tax (Schedule G-20) 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.
Schedule G-21 presents an adjustment to Stores Load expense. Expenses related to stores are
accumulated in a balance sheet account and then cleared to capital and expense accounts based on
7
a percentage load applied to all requisitions :for materials and supplies. Since the percentage load
is based on estimated usage and costs, it may not clear the actual costs incurred in any given
twelve-month period. During the test year, the mounts cleared for stores exceeded the actual
costs incurred. Thus, an adjustment to the test year was necessary to properly reflect the
overcleared costs.
In a similar manner, Transportation and Work Equipment costs were overcleared during the test
year. Schedule G-22 contains the adjustment to properly reflect transportation and work
equipment expense.
Schedules G-25 and G-26 add an allocated portion of Eastern Region staffand expenses and Gulf
Coast Area staff and expenses. The expenses for area and regional employees is recorded on the
Company's books at the regional or area level and is not reflected in test year unadjusted
expenses. The South Jefferson County Service Area receives an allocation of 12.09 percent of the
Eastern Region Vice President and his staff. This staff is comprised of two human resources
employees, one accounting employee, two customer representatives, a public affairs
representative, a safety coordinator and a technical trainer. The South Jefferson County Service
Area also receives an allocation of 67.53 percent of the Area Director, an administrative assistant
and an accountant. B~ sharing regional or district employees among service areas, the Company
is able to decrease costs, operate more efficiently and delay the need for rate increases.
Base Rate Revenue at Proposed Rates
Schedule H 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 line 18, equals the Company's base rate revenue
deficiency plus rounding difference of $779, as shown on Schedule A, line 15.
Schedule A
TEXAS GAS SERVICE
SOUTH JEFFERSON COUNTY SERVICE AREA
TWELVE MONTHS ENDED JUNE 30, 2005
SUMMARY OF REVENUE REQUIREMENT
LINE FROM ADJUSTED
NO. DESCRIPTION SCHEDULE TEST YEAR
(a)
1 Rate Base B $21,160,248
2 Rate of Return E 8.870%
3 Required Return $1,876,914
4 Depreciation & Amortization Expense G 858,149
5 Taxes Other Than Income Taxes G 501,892
6 Interest on Customer Deposits G 24,302
7 Distribution Expense G 2,416,580
8 Customer Accounts Expense G 944,155
9 Administrative and General Expense G 1,475,804
10 Federal Income Tax F 592,916
11 Revenue Requirement before Gross-ups $8,690,712
12 Test Year Adjusted Revenue G (6,258,749)
13 Revenue Deficiency $2,431,964
Gross-up for Revenue Related Expenses: Factor:
14 Uncollectible Expense 0.0051131 12,498
15 Total Revenue Deficiency $2,444,462
16 Total Revenue Requirement (Line 11 + Line 14) $8,703,211
Schedule
TEXAS GAS SERVICE
SOUTH JEFFERSON COUNTY SERVICE AREA
TWELVE MONTHS ENDED JUNE 30, 2005
RATE BASE
LINE FROM ADJUSTED
NO. DESCRIPTION SCHEDULE TEST YEAR
(a)
GROSS PLANT IN SERVICE
I Intangible Plant C $1,256
2 Transmission Plant C 17,419
3 Distribution Plant C 27,628,085
4 General Plant C 3,168,669
5 Completed Construction Not Classified C-1 1,018,283
6 Gross Plant in Service $31,833,713
7 Net Depreciation & Amortization Reserves D (11,000,969)
8 Net Plant in Service - Adjusted Test Year Direct and Allocated Corp & TGS Div $20,832,744
NON-INVESTOR SUPPLIED FUNDS
9 Customer Deposits - Test Year D rect (405,037)
10 Customer Advances - Test Year Direct (67,929)
11 Accumulated Deferred Taxes - Test Year Direct and Allocated Corp & TGS Div (378,634)
OTHER RATE BASE ITEMS
12 Materials and Supplies Inventory - Test Year Direct 122,326
13 Prepayments - Adjusted Test Year Allocated Corp & TGS Div 57,882
14 Cash Working Capital - Adjusted Test Year Direct and Allocated Corp & TGS Div 998,895
15 Total Rate Base $21,160,24~
Schedule C
TEXAS GAS SERVICE
SOUTH JEFFERSON COUNTY SERVICE AREA
'I'VVELVE MONTHS ENDED JUNE 30, 2005
TOTAL PLANT IN SERVICE
CORP & TGS DIV TOTAL
LINE DIRECT ALLOCATED SJC
NO. DESCRIPTION PLANT PLANT PLANT
(a) (b) (c)
INTANGIBLE PLANT
1 (301) Organization $0 $0 $0
2 (302) Franchises & Consents 1,256 0 1,256
3 (303) Misc. Intangible 0 0 0
4 Total Intangible Plant $1,256 $0 $1,256
TRANSMISSION PLANT
5 (369) Measure/Reg. Station Equipment $17,419 $0 $17,419
6 Total Transmission Plant $17,419 $0 $17,419
DISTRIBUTION PLANT
7 (374) Land & Land Rights $15,567 $0 $15,567
8 (375) Structures & Improvements 0 0 0
9 (376) Mains 12,977,220 0 12,977,220
10 (377) Compressor Station Equipment 0 0 0
11 (378) Meas. & Reg. Station - General 371,545 0 371,545
12 (379) Meas. & Reg. Station - C.G. 212,463 0 212,463
13 (380) Services 10,274,530 0 10,274,530
14 (381) Meters 2,571,370 0 2,571,370
15 (382) Meter Installations 0 0 0
16 (383) House Regulators 306,168 0 306,168
17 (385) Indust. Meas. & Reg. Stat. Equipment 899,223 0 899,223
18 (386) Other Property on Customer Premises 0 0 0
19 (387) Meas. &Reg. Stat. Equipment 0 0 0
20 Total Distribution Plant $27,628,085 $0 $27,628,085
GENERAL PLANT
21 (389) Land & Land Rights $40,035 $0 $40,035
22 (390) Structures & Improvements 970,852 26,638 997,490
23 (391) Office Furniture & Equipment 33,510 1,401,510 1,435,020
24 (392) Transportation Equipment 3,824 22 3,845
25 (393) Stores Equipment 3,532 0 3,532
26 (394) Tools, Shop, & Garage 307,660 2,747 310,407
27 (395) CNG Equip 0 0 0
28 (396) MajorWorkEquipment 25,621 0 25,621
29 (397) Communication Equipment 332,719 17,546 350,264
30 (398) Miscellaneous General Plant 2,179 275 2,454
31 Total General plant $1,719,932 $1,448,738 $3,168,669
32 Total Orig Cost Plant in Service $29,366,692 $1,448,738 $30,815,429
SCH C-1
TEXAS GAS SERVICE
SOUTH JEFFERSON COUNTY SERVICE AREA
TWELVE MONTHS ENDED JUNE 30, 2005
TOTAL COMPLETED CONSTRUCTION NOT CLASSIFIED (CCNC)
CORP & TGS DlV TOTAL
LINE DIRECT ALLOCATED SJC
NO. DESCRIPTION CCNC CCNC CCNC
(a) (b) (c)
INTANGIBLE PLANT
I (301) Organization $0 $0 $0
2 (302) Franchises & Consents 0 0 0
3 (303) Misc. Intangible 0 0 0
4 Total Intangible CCNC $0 $0 $0
TRANSMISSrON PLANT
5 (369) Measure/Reg. Station Equipment $0 $0 $0
6 Total Transmission CCNC $0 $0 $0
DISTRIBUTION PLANT
7 (374) Land & Land Rights $0 $0 $0
8 (375) Structures & [~,~rovemonts 0 0 0
9 (376) Mains 441,372 0 441,372
10 (377) Compressor Station Equipment 0 0 0
11 (378) Meas. & Reg. Station - General 40,239 0 40,239
12 (379) Meas. & Reg. Station - C.G. 0 0 0
13 (380) Services 342,784 0 342,784
14 (381) Meters 164,516 0 164,516
15 (382) Meter Installations 22,353 0 22,353
16 (383) House Regulators 0 0 0
17 (385) Indust. Meas. & Reg. Stat. Equipment 0 0 0
18 (386) Other Property on Customer Premises 0 0 0
19 (387) Meas. & Reg. Stat. Equipment 0 0 0
20 Total Distribution CCNC $1,011,265 $0 $1,011,265
GENERAL PLANT
21 (389) Land & Land Rights $0 $0 $0
22 (390) Structures & Improvements 0 0 0
23 (391) Office Furniture & Equipment 0 1,147 1,147
24 (392) Transportation Equipment 0 0 0
25 (393) Stores Equipment 0 0 0
26 (394) Tools, Shop & Garage 5,871 0 5,871
27 (395) CNG Equip 0 0 0
28 (396) MajorWork Equipment 0 0 0
29 (397) Communication Equipment 0 0 0
30 (398) Miscellaneous General Plant 0 0 0
31 Total General CCNC $5,871 $1,147 $7,018
32 Total Orig Cost CCNC $1,017,136 $1,147 $1,018,283
SCHEDULE D
TEXAS GAS SERVICE
SOUTH JEFFERSON COUNTY SERVICE AREA
TWELVE MONTHS ENDED JUNE 30, 2005
TOTAL ACCUMULATED RESERVES FOR DEPRECIATION
CORP & TGS DIV TOTAL
LINE DIRECT ALLOCATED SJC
NO. DESCRIPTION ACCUM DEPR ACCUM DEPR ACCUM DEPR
(a) (b) (c)
INTANGIBLE PLANT
1 (301) Organization $0 $0 $0
2 (302) Franchises & Consents 1,643 0 1,643
3 (303) Misc. Intangible 0 0 0
4 Total Intangible Plant $1,643 $0 $1,643
INTANGIBLE PLANT
5 (301) Organization $751 $0 $751
6 Total Intangible Plant $751 $0 $751
DISTRIBUTION PLANT
7 (374) Land & Land Rights $1,292 $0 $1,292
8 (375) Structures &Imp, rovements 0 0 0
9 (376) Mains 5,876,111 0 5,876,111
10 (377) Compressor Station Equipment 0 0 0
11 (378) Meas. &Reg. Station- General 124,916 0 124,916
12 (379) Meas. & Reg. Station - C.G. 100,431 0 100,431
13 (380) Services 3,374,733 0 3,374,733
14 (381) Metem 485,045 0 485,045
15 (382) Meter Installations 669 0 669
16 (383) House Regulatom (113,955) 0 (113,955)
17 (385) Indust; Meas. & Reg. Stat. Equipment 435,505 0 435,505
18 (386) Other Property on Customer Premises 0 0 0
19 (387) Meas. &Reg. Stat. Equipment 0 0 0
20 Total Distribution Plant $10,284,747 $0 $10,284,747
GENERAL PLANT
21 (389) Land & Land Rights $0 $0 $0
22 (390) Structures & Improvements 248,286 12,928 261,214
23 (391) Office Furniture & Equipment 10,239 236,323 246,562
24 (392) Transportation Equipment 1,377 3 1,380
25 (393) Stores Equipment 2,163 0 2,163
26 (394) Tools, Shop, & Garage 8,605 1,641 10,246
27 (395) CNG Equip 0 0 0
28 (396) Major Work Equipment 20,926 0 20,926
29 (397) Communication Equipment 162,411 5,740 168,151
30 (398) Miscellaneous General Plant 3,152 34 3,186
31 Total General plant $457,159 $256,670 $713,828
32 Total Accumulated Reserves For Depreciation ~ $10,744,299 $256,670 $11,000,969
Schedule E
TEXAS GAS SERVICE
SOUTH JEFFERSON COUNTY SERVICE AREA
TWELVE MONTHS ENDED JUNE 30, 2005
COST OF CAPITAL
LINE COST RATE COMPOSITE
NO. DESCRIPTION RATIO % RATE %
(a) (b) (c)
I Long-Term Debt 0.5375 6.180% 3.3200%
2 Common Equity 0.4625 12.000% 5.5500%
3 Total 1.0000 8.8700%
gchedule F
TEXAS GAS SERVICE
SOUTH JEFFERSON COUNTY SERVICE AREA
'rVVELVE MONTHS ENDED JUNE 30, 2005
FEDERAL INCOME TAX
LINE FROM ADJUSTED
NO. DESCRIPTION SCHEDULE TEST YEAR
(a)
1 Rate Base B $21,160,248
2 Rate of Retum E 8.87000%
3 Required Return $1,876,914
4 Less: Interest on Long-Term Debt (1) (702,520)
5 Net After Tax Income $1,174,394
6 Less ITC Amorfiz.~tion (25,642)
7 Net $1,148,752
8 Gross-Up Factor [1/(1-0.35)] 1.5384615
9 Net Taxable Income $1,767,310
10 Tax Rate 35.00000%
11 Federal Income Tax $618,559
12 Less ITC Amortization (25,642)
13 Net Income Tax Expense $592,916
Note (1)
14 Debt Component of Retum E 3.32000%
15 Net Odginal Cost Rate Base B $21,160,248
16 Interest on Long-Term Debt $702,520
Schedule
Page 1
TEXAS GAS SERVICE
SOUTH JEFFERSON COUNTY SERVICE AREA
TWELVE MONTHS ENDED JUNE 30, 2005
SUMMARY OF OPERATING REVENUES & EXPENSES
RECORDED
LINE FROM TEST YEAR ADJUSTED
NO. DESCRIPTION SCHEDULE DIRECT ADJUSTMENTS TEST YEAR
(a) (b) (c)
OPERATING REVENUES
I Gas Sales, Transportation & Other Utility Revenue G-1,2.3 $17.496.010 ($11.237.261) $6.258,749
2 Total Oporafing Revenue Adjustments $17.496,010 ($11.237,2611 $6.268.749
OPERATING EXPENSES
3 Cost of Gas G-1 $11.169.612 ($11.169.612) $0
4 Payroll Expense G-4 1.029.582 316.909 1.346,491
5 Employee Benefits G-5 314.964 135.094 450,058
6 Payroll Taxes G~6 70.306 36,191 106,497
7 Injuries and Damages G-7 82.368 (46,668) 35.700
8 Civic Activities and Contributions G-8 4.630 (2.204) 2,427
9 Advertising Expense G-9 3,906 (150) 3.756
10 Customer Call Center Expense G-10 0 252,293 252.293
11 Rents and Leases G-11 34.888 0 34.888
12 Interest on Customer Deposits G-12 20.874 3.428 24,302
13 Rate Case Expenses G-13 401 9.599 10.000
14 Uncollectible Expense ~ G-14 (103,304) (12.354) (115.659)
15 Depreciation and Amortization Expense G-15 0 858.149 858,149
16 Corporate & TGS Division Expense G-16 0 1.028,122 1.028.122
17 City Franchise Tax Expense G-17 (29) 29 0
18 Texas Gross Receipts Tax Expense G-18 3.249 (3,249)
19 Ad Valorem Tax Expense G--19 367,872 73.180 441,052
20 State Franchise Tax Expense C--20 38,478 22,362 60.840
21 Stores Load Clearing G-21 29.378 (4,766) 24.612
22 Transportation & Work Equipment Clearing G-22 209.725 (52.680) 157.045
23 Schedule not used G-23 0 0 0
24 Article 6060 Tax Expense G-24 (123) 123 0
25 Regional VP and Staff Expenses G-25 67,259 14,642 81,901
26 Gulf Coast Area Expenses G-26 0 85.545 85.545
27 Unadjusted Expenses 1.332.863 0 1.332.863
28 Total Operating Expense Adjustments $14,676,899 ($8.456.017/ $6.220.882
29 Net Operating Revenue & Expense Adjustments $2.819.111 152.781.2441 $37.867
Schedule G
TEXAS GAS SERVICE
SOUTH JEFFERSON COUNTY SERVICE AREA
TWELVE MONTHS ENDED JUNE 30, 2005
SUMMARY OF OPERATING REVENUES & EXPENSES
RECORDED
LINE TEST YEAR ADJUSTED
NO. DESCRIPTION ACCOUNT NUMBER DIRECT ADJUSTMENTS TEST YEAR
ia) (b) (c)
REVENUE
I Gas Sales Revenue 480-482 $16,815,242 ($11,178,883) $5,636,359
2 Forfetied Discounts 4870 116,750 (116,750) 0
3 Misc Fees 4880 216,434 0 216,434
4 Transportation 4890 337,135 58,372 395,507
5 Other Utility Revenue 4950 10,448 0 10,448
6 Total Revenue $17,496,009 I$11.237,2611 $6,258,749
7 COST OF GAS 804-806,808-812,858 $11,169.612 1511,169,6121 $0
DEPRECIATION & AMORTIZATION
8 Depreciation Expense 4030 $0 $858,149 $658,149
9 Amortization Expense 4040 0 0 0
10 Total Dept. & Amort. $0 $658,149 $658,149
TAXES OTHER THAN INCOME
11 Payroll 4081 $0 $O $0
12 Ad Valorem 4081 387,872 73.180 441,052
13 Revenue Related 4081 3,097 (3,097) (0)
14 Other 4081 38,478 22,362 60,840
15 Total Taxes Other Ti3an Income $409,447 $92,445 $501,892
16 INTEREST ON CUSTOMER-DEPOSITS 4310 $20,874 $3,428 $24,302
DISTRIBUTION OPERATIONS
17 Supendsion and Engineering 8700 $260,349 $46,837 $306,886
18 Distabu6on Load D~patch 8710 0 0 0
19 Mains & Services 8740 33,921 6,461 40,382
20 Maas. Stat. Exp. - Deneral 8750 83,056 12,079 95,136
21 Meter & Hob'se Reg. Exp. - Ind. 8760 0 0 0
22 Meier & House Reg. Exp.-City Gate 8770 0 0 0
23 Meter & House Reg. Exp. 8780 406,157 130,947 537,104
24 Customer Inst. Reg. 8790 0 6,605 6,605
25 Other 8800 351,662 (34,938) 316,724
26 Rents 8810 0 0 0
27 Corporate & TGS Division Expenses Credit 8820 0 0 0
28 Total Distabution Operations $1,135~146 $167,691 $1,302,837
DISTRIBUTION MAINTENANCE
29 Stmct.& Improv. 8860 $0
30 Mains 8870 755,565 119,130 874,695
31 Maas. 8, Reg. Stat. Exp. -Gen 8890 33,395 0 33,395
32 Maas. & Reg. Stat. Exp. - Ind. 8900 0 0 0
33 Maas. & Reg. StaL Exp. - City Gate 8910 0 0 0
34 Steel Sen, ices 8920 142,277 63,343 205,620
35 Meters & House Rag. 8930 0 0 0
36 Gas Street Lights 8940 32 0 32
37 Cieadng - Meta~ Shop 8950 0 0 0
38 CleaSng - Meter Shop 8960 0 0 0
39 Total DistabuSon Maintenance $931,270 $182,473 $1,113,743
40 Total DistdbuUon Expense $2,066,415 $350,164 $2,416,580
Schedule G
Page 3
TEXAS GAS SERVICE
SOUTH JEFFERSON COUNTY SERVICE AREA
TWELVE MONTHS ENDED JUNE 30. 2005
SUMMARY OF OPERATING REVENUES & EXPENSES
RECORDED
LINE TEST YEAR ADJUSTED
NO. DESCRIPT]ON ACCOUNT NUMBER DIRECT ADJUSTMENTS TEST YEAR
(a) (b) (c)
CUSTOMER ACCOUNTING
41 Supervision 9010 $0 $0 $0
42 Meter Reading 9020 172.902 0 172.902
43 Custcrner Accounting 9030 352.426 322.796 675.222
44 Bad Debls 9040 103.304 (12.354) 90.950
45 Miscellaneous 9050 5.462 (3801 5.082
46 Total Customer Accounting $634.094 $310.061 $944.155
CUSTOMER INFORMATION
47 Supe~'lsion 9070 $0 $0 $0
48 Customer Assistance Expense 9080 0 0 0
49 Inform. & Instruct. Adver. Exp. 9090 0 0 0
50 Communications 9100 0 0 0
51 Tolal Customer Information $0 $0 $0
SALES
52 Advertising 9130 $0 $0 $0
53 Employee Sales Referrals 9140 0 0 0
54 Misc. (;as Sales Expense 9163 0 0 0
55 Total Sales $O $43 $0
56 Total Customer Accounts Expense $634.094 $310.061 $944.155
ADMINISTRATIVE & GENERAL
57 Salades 9200 $115.379 $103.382 $218.761
58 Office Supplies & Expenses 9210 114.581 4.075 118.657
59 Transferred Credit 9220 0 0 0
60 Outside Services 9230 41.748 0 41.748
61 Corporate & TGS Dtvisk~l Expense 9230 0 1.028.122 1.028.122
62 Injuries & Damages 9250 82.368 (46.668) 35.700
63 Employee Pensions & Benefits 9260 1.711 734 2.445
64 Regulatory Corr~'nission Expense 9280 401 9.599 10.000
65 Computer Servides Expense 9290 0 0 0
66 Misc. General Expenses 9300% 20.258 102 20.371
67 Misc. General Expenses 9400's , 0 0 0
68 Total Administrative & General Expense $376.457 $1.099.347 $1.475.804
69 Total Opem6ng Expense $14.676.899 /$8.456.0171 $6.220.882
70 Earnings Before Income Tax & Interest Expense $2.819.111 152,781.2441 $37.867
Schedule G-1
TEXAS GAS SERVICE
SOUTH JEFFERSON COUNTY SERVICE AREA
TWELVE MONTHS ENDED JUNE 30, 2005
REMOVE COST OF GAS REVENUE, COST OF GAS EXPENSE
LINE
NO. DESCRIPTION AMOUNT
(a)
1 Remove Test Year Cost of Gas Revenue ($11,182,826)
2 Remove Test Year Cost of Gas Expense I11,169,612)
3 Total Adjustments to Test Year __($22,352,438)
Schedule G-2
TEXAS GAS SERVICE
SOUTH JEFFERSON COUNTY SERVICE ARE,~
TWELVE MONTHS ENDED JUNE 30, 200,~
NORMALIZE OAS SALES REVENUE
LINE
NO. DESCRIPTION TOTAL BILLS CCF REVENUE
(a) (b) (a)
OPERATING GAS SALES REVENUE:
I Test Year Gas Sales Revenue per Book - Accta 4800 thru 4820 390,415 15,729,164 $16,815,242
2 Less Cost of Gas Revenue per test year (11,182,826)
3 Base Sales Revenue as Recorded 390,415 15,729,164 $5,632,416
Adiustments to Base Revenue:
4 Annualize to Current Rates $24,850
5 Remove WNC Revenue ($48,330)
6 Adjustment to Normal Weather 925,588 57,711
7 Growth Adjustment (189) (24,083) (5,258)
8 Load Change Adjustment (414,706) (25,030)
9 Total Adjustments to Base Sales Revenue (189) 486,799 $3,943
10 Base Sales Revenue As Adjusted 390,226 16,215,963 $5,636,35~
Schedule G-3
TEXAS GAS SERVICE
SOUTH JEFFERSON COUNTY SERVICE AREA
TWELVE MONTHS ENDED JUNE 30, 2005
NORMALIZE OTHER UTILITY REVENUE
LINE
NO. DESCRIPTION REVENUE
(a)
1 TEST YEAR TRANSPORTATION REVENUE - ACCT 4890 $337,135
Adiustments to Transportation Revenue:
2 New Customer Annulization 49,763
3 Annualize toCurrent Rates 5,699
4 Remove Estimated Revenue Journal Entries 2,910
5 Total Adjustments $58,372
6 Total Transportation Revenue As Adjusted $395,507
7 TEST YEAR FORFEITED DISCOUNTS - ACCT 4870 $116,750
8 Adjustment to Test Year ($116,750)
9 Total Forfeited Discounts As Adjusted $0
10 TEST YEAR SERVICE FEES - ACCT 4880 $216,434
11 TEST YEAR OTHER UTILITY REVENUE - ACCT 4950 $10.448
12 Total Transportation, Fees and Other Utility Revenue As Adjusted $622.390
Schedule G-4
TEXAS GAS SERVICE
SOUTH JEFFERSON COUNTY SERVICE AREA
TWELVE MONTHS ENDED JUNE 30, 2005
PAYROLL EXPENSE
SOUTH
JEFFERSON
LINE COUNTY
NO. DESCRIPTION DIRECT
(b)
REGULAR WAGES
I TotalAnnualized Regular Wages $1,445,883
2 Allocation Factors 0.9993
3 Total Allocated Regular Wages $1,444,871
OVERTIME WAGES
4 Total Annualized Overtime Wages $209,986
5 Allocation Factors 0.9988
6 Total Allocated Overtime Wages $209,734
OTHER WAGES
7 Total Annualized Other Wages $65,907
8 Allocation Factors 1.0000
9 Total Allocated Other Wages $65,907
TOTAL WAGES
10 Total Annualized Wages $1,721,776
11 Total Effective Allocation Factors 0.999266
12 Total Allocated Wages $1,720,512
13 Payroll Expense Factor 0.779545
14 Adjusted Test Year Annualized Payroll Expense $1,341,217
Miscellaneous Test Year Payroll Expense Charges not annualized:
15 Main 8750
16 Main 8870 5,274
18 Adjusted Test Year Payroll Expense $1,346,491
19 Test Year Payroll Expense (1,029,582)
20 Adjustment to Test Year Expense $316,909
Schedule G-~g
TEXAS GAS SERVICE
SOUTH JEFFERSON COUNTY SERVICE AREA
TWELVE MONTHS ENDED JUNE 30, 2005
TEXAS GROSS RECEIPTS TAX EXPENSE
LINE
NO. DESCRIPTION AMOUNT
(a)
1 Remove Test Yr Gross Receipts Tx Expense - Acct 4081138 ($3,249)
2 Adjustment to Test Year Expense ($3,249)
Schedule G-19
TEXAS GAS SERVICE
SOUTH JEFFERSON COUNTY SERVICE AREA
TVVELVE MONTHS ENDED JUNE 30, 2005
AD VALOREM TAX EXPENSE
LINE
NO. DESCRIPTION AMOUNT
(a) (b) (c)
DIRECT SOUTH JEFFERSON COUNTY PLANT (~, 6/30/05
I Plant In Service - Distribution $27,628,085
2 Plant In Service - General 1,719,932
3 CCNC 1,017,136
4 Accumulated Depreciation ~ Distribution (10,284,747)
5 Accumulated Depreciation - General (457,159I
6 Net Plant - SJC Area Direct 6/30/05 $19,623,248 $19,623,248
CALCULATION OF EFFECTIVE RATE
7 Ad Valorem Taxes Paid in 2005 for SJC Direct Plant at 1/1/04 $348,046
DIRECT SOUTH JE'~FERSON COUNTY PLANT (~, 01/01/04:
8 Plant In Service - [3istribution $24,003,190
9 Plant In Service - General 1,674,332
10 CCNC 516,462
11 Accumulated Depreciation - Distribution (10,194,741)
12 Accumulated Depreciation - General (513,755)
13 Net Plant - South Jefferson County 1/1/04 $15,485,488 15,485,488
14 Effective 2004 Tax Rate 0.022476 0.022476
15 Annualized Ad Valorem Tax Expense $441,052
16 Test Year Ad Valorem Tax Expense - Acct 4081190 (367,872)
17 Adjustment to Test Year Expense $73,180
Schedule G-20
TEXAS GAS SERVICE
SOUTH JEFFERSON COUNTY SERVICE AREA
TWELVE MONTHS ENDED JUNE 30, 2005
STATE FRANCHISE TAX EXPENSE
LINE
NO. DESCRIPTION AMOUNT
(a) (b) (c)
TAX ON CAPITAL
1 Gross Receipts in South Jefferson County - FY ended 12/31/2004 $17,749,512
2 Gross Receipts Texas Gas Service in Texas FY ended 12/31/2004 332,627,904
3 Percent of Business in South Jefferson County (Line 1/Line 2) 5.3400%
4 Total State Franchise Tax in Texas FY ended 12/31/2004 $392,020
5 Minimum Tax Due (Line 3 x Line 4) $20,934
TAX ON INCOME
6 Taxable Income (Rounded to Nearest $1,000) (Line 16) $1,352,000
7 State Franchise Tax Rate on Income 4.5000%
8 Minimum Tax Due (Line=6 x Line 7) $60,840
9 Applicable Tax (Larger of Line 5 and Line 8) $60,840
10 Test Year Expense- Acct 4081233 (38,478)
11 Adjustment to Test Year Expense $22,362
TAXABLE INCOME
12 Rate Base $21,160,248
13 Applicable Percentage (Note 1) 5,550%
14 South Jefferson County Adjusted Test Year Net Income $1,174,394
15 Add Back Directors Fees and Officers Salaries 177,736
16 Taxable Income (Rounded to Nearest $1,000) $1,352,000
Note (1): Weighted Cost of Equity (schedule E).
Schedule G-21
TEXAS GAS SERVICE
SOUTH JEFFERSON COUNTY SERVICE AREA
TWELVE MONTHS ENDED JUNE 30, 2005
STORES LOAD CLEARING
LINE
NO. DESCRIPTION AMOUNT
(a) (b) (c) (d)
I Test Year Charges into Stores Account 1630 $148,750
2 Less Test Year Amounts Cleared Out of Account 1630 (187,370)
3 Test Year Amount Under/(Over) Cleared ($38,620) ($38,620)
Plus/Minus Adjustments To Test Year Amounts Charged into Acct 1630:
Adjusted Recorded
Test Year Test Year Adjustment
4 Payroll $30,728 $31,387 ($660)
5 Benefits 10,311 9,584 727
6 Injuries and Damages 818 0 818
7 Payroll Taxes 2,440 2,151 289
8 Other 112,678 105,628 7,051
9 Total $156,974 $148,750 $8,225 8,225
10 Total Adjusted Amount Under/(Over) Cleared ($30,396)
Spread Under/(Over) Crearing to Accounts based on Test Year Clearing:
11 Adjustment to Test Year Expense Accounts ~ ($4,766)~
12 Adjustment to Test Year Non-Expense Accounts (25,630)
13 Total Adjustment to Test Year Clearing Acct 1630 ($30,396)
Schedule G-22
TEXAS GAS SERVICE
SOUTH JEFFERSON COUNTY SERVICE AREA
TWELVE MONTHS ENDED JUNE 30, 2005
TRANSPORTATION AND WORK EQUIPMENT CLEARING
LINE
NO. DESCRIPTION AMOUNT
(a) (b) (c) (d)
1 Test Year Charges into TVVE Clearing Account 1840 $202,799
2 Less Test Year Amounts Cleared Out of TWE Account 1840 (286.054)
3 Test Year Amount Under/(Over) Cleared ($83,255) ($83,255)
Plus/Minus Adjustments To Test Year Amounts Charged into TWE Acct 1840:
Adjusted Recorded
Test Year Test Year Adjustment
4 Depreciation $2,122 $2,054 $68
5 Lease Costs 133,783 133,783 0
6 Payroll 0 0 0
7 Benefits 0 0 0
8 Injuries and Damages 0 0 0
9 Payroll Taxes 0 0 0
10 Other 78,295 66,962 11,334
11 Total $214,201 $202,799 $11,402 11,402
12 Total Adjusted Amount Under/(Over) Cleared ($71,853)
Spread Under/(Over) Cleadn~ to Accounts based on Test Year Clearing:
13 Adjustment to Test Year Expense Account= I 1552,~011
14 Adjustment to Test Year Non.Expense Accounts (19,173)
15 Total Adjustment to Test Year TWE Clearing Acct 1840 ($71,853/
Schedule G-23
TEXAS GAS SERVICE
SOUTH JEFFERSON COUN'rY SERVICE AREA
TWELVE MONTHS ENDED JUNE 30, 2005
THIS SCHEDULE WAS NOT USED
LINE
NO. DESCRIPTION AMOUNT
Schedule G-24
TEXAS GAS SERVICE
SOUTH JEFFERSON COUNTY SERVICE AREA
TWELVE MONTHS ENDED JUNE 30, 2005
ARTICLE 6060 TAX EXPENSE
LINE
NO. DESCRIPTION AMOUNT
(a)
1 Remove Test Year Article 6060 Tax Expense - Acct 4081140 (test yr
was a credit, therefore the adjustment will be a debit) $123
2 Adjustment to Test Year Expense $123
Schedule G-25
TEXAS GAS SERVICE
SOUTH JEFFERSON COUNTY SERVICE AREA
'FWELVE MONTHS ENDED JUNE 30, 2005
REGION VP AND STAFF EXPENSES
TOTAL % TOTAL
ALLOCABLE ALLOCABLE ALLOCATED ADJUSTMENT
LINE MAIN REGION VP & STAFF TO TO TEST YEAR TO TEST YEAR
NO. ACCT EXPENSE SJC SJC EXPENSE EXPENSE
(a) (b) (c) (d) (e)
1 8800 $677,492 12.0888% $81,901 $67,259 $14,642
2 Total $677,492 $81,901 $67,259 $14,642
(See Note)
Note: These are payroll and non-payroll related expenses.
Schedule G-26
TEXAS GAS SERVICE
SOUTH JEFFERSON COUNTY SERVICE AREA
TWELVE MONTHS ENDED JUNE 30, 2005
GULF COAST AREA EXPENSES
TOTAL % TOTAL
ALLOCABLE ALLOCABLE ALLOCATED ADJUSTMENT
LINE MAIN GULF COAST TO TO TEST YEAR TO TEST YEAR
NO. ACCT EXPENSE SJC SJC EXPENSE EXPENSE
(a) (b) (c) (d) (e)
I 8800 $456 67.5332% $308 $0 $308
2 9200 117,106 67.5332% 79,085 0 79,085
3 9210 8,735 67.5332% 5,899 0 5,899
4 9302 374 67.5332% 252 0 252
5 Total $126,671 $85,545 $0 $85,545
(See Note)
Note: These are payroll and non-payroll related expenses.
Schedule H
TEXAS GAS SERVICE COMPANY
SOUTH JEFFERSON COUNTY SERVICE AREA
TVVELVE MONTHS ENDED JUNE 30, 2005
Proposed Rate Design
AS AS AS REVENUE AT
PROPOSED ADJUSTED ADJUSTED ADJUSTED PROPOSED
Line RATES BILLS VOLUMES TY REV RATES
RESIDENTIAL
I Customer Charge $ 15.00 372,908 $ 5,593,620
2 All Ccf $ 0.12150 12,508,299 $ 1,519,758
3 $ - $
372,908 12,508,299 $ 4,965,194 $ 7,113,378
COMMERCIAL
4 Customer Charge Ii 3t.25I 15,214 $ 475,438
5 Volumetric Charge - Step 1 (First 250 Ccf) 0.12520 1,071,421 $ 134.142
6 Volumetric Charge - Step 2 (Over 250 Cc'f) 0.09760 1,719,409 $ 167,814
15.214 2,790.829 $ 524.162 $ 777,394
PUBLIC AUTHORITY AND SCHOOLS
7 Customer Charge $ 30.00 2,104 $ 63,120
8 Volumetric Charge - Step 1 (First 250 Cc0 ~ 0.20220 224,749 $ 45,444
9 Volumetric Charge - Step 2 (Over 250 Cc0 0.17640 692.085 $ 122,084
2,104 916,834 $ 160.972 $ 230,648
TRANSPORTATION - COMMERCIAL
10 Customer Charge $ 300.00 60 $ 18,000
11 Volumetric Charge - Step I (First 250 Cc0 $ 0.12520 14,831 $ 1.857
Volumetric Charge - Step 2 (Over 250 Ccf) $ 0.09760 655,354 $ 63,963
60 670,185 $ 111,228 $ 83.819
13 SPECIAL CONTRACT REVENUE $ 284,279 $ 284.279
14 FORFEITED DISCOUNTS $ $
15 SERVICE CHARGES &OTHER REV $ 226,882 $ 226,882
16 VARIANCE TO GENERAL LEDGER $ (13,969) $ (13,969)
17 TOTAL REVENUES $ 6,258,749 $ 8,702,432
18 TY REVENUE INCREASE $ 2,443,683
PROPOSED TARIFFS
TEXAS GAS SERVICE COMPANY RATE SCHEDULE NO. 1-1-INC
South Jefferson County Service Area 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 Texas Gas
Service Company ("The Company") in the incorporated areas of its South Jefferson
County Service Area.
B. DEFINITIONS
1. 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.
3. 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 soumes 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 ga~ng, treating, processing, transportation, capacity and/or supply
reservation ~'ees, storage, balancing, and swing services necessary for the
movement of gas to the Company's city gate delivery points. The Cost of
Purchased Gas shall also include gains or losses from the utilization of natural gas
financial instruments that are executed by the Company for the purpose of
mitigating high prices and price volatility.
4. Reconciliation Component - The amount to be retumed to or recovered from
customers each month from October through June as a result of the Reconciliation
Audit.
5. Reconciliation Audit - An 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, (b) the revenues received from operation of the
provisions of this cost of gas clause,
Supersedes Same Sheet Dated Meters Read On and After
8/27/04 (Cities of Nederland, Groves & Port Neches) December 28, 2005
& 12/23/02 (City of Port Arthur)
TEXAS GAS SERVICE COMPANY RATE SCHEDULE NO. 1-1-INC
South Jefferson County Service Area Page 2 of 4
COST OF GAS CLAUSE
(Continued)
5. (cont.) (c) the total amount o£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 o£ Gas Clause, (d) the total amount accrued
during the period for imbalances under the transportation rate schedule(s) net o£
franchise fees and applicable taxes, (e) the total amount of uncollectible accounts
that are attributable to charges calculated under this tariff during the period, and (O
an adjustment, if necessary, £or lost and unaccounted for gas during the period in
excess of five (5) percent o£purchases.
6. 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 o£ the volumes sold to general service customers during the same
period. For the purpose o£ 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.
7. 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
o£ the cost of gas clause. Entries shall be made monthly to reflect, (a) the total
amounts paid~.~t0 the Company's 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. (d) the total amount accrued during the period for imbalances
under the transportation rate schedule(s) net of franchise fees and applicable taxes,
(e) the total amount of uncollectible accounts that are attributable to charges
calculated under this tariff during the period, and (f) an adjustment, i£ necessary,
for lost and unaccounted for gas during the period in excess of five (5) percent o£
purchases.
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 o£Gas incurred during the
billing period. The Cost of Gas shall be clearly identified on each customer bill.
Supersedes Same Sheet Dated Meters Read On and After
8/27/04 (Cities of Nederland, Grov. es & Port Neches) December 28, 2005
& 12/23/02 (City of Port Arthur)
TEXAS GAS SERVICE COMPANY RATE SCHEDULE NO. 1-1-INC
South Jefferson County Service Area Page 3 of 4
COST OF GAS CLAUSE
(Continued)
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
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 including any cost of gas
inventory in storage within the period of audit. If, on the average, the Company had
ovemollected 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 Cqmpany had undercollected during the period, it shall debit into the
Reconciliation Acc~ount during September an amount equal to the average balance
multiplied by nine percent (9%).
F. 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 retumed 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.
Supersedes Same Sheet Dated Meters Read On and After
8/27/04 (Cities of Nederland, Groves & Port Neches) December 28, 2005
& 12/23/02 (City of Port Arthur)
TEXAS GAS SERVICE COMPANY RATE SCHEDULE NO. 1-1-INC
South Jefferson County Service Area Page 4 of 4
COST OF GAS CLAUSE
(Continued)
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 Gas calculation. 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.
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
&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.
4. A description of the imbalance payments made to and received from the Company's
transportation customers within the service area, including monthly imbalances
incurred, the monthly imbalances resolved, and th? amount of the cumulative
imbalance. The description should reflect the' system imbalance and imbalance
amount for each supplier using the Company's distribution system during the
reconciliation period.
5. A tabulation of the uncollectible accounts attributable to charges calculated under this
tariff, including monthly amounts charged off, and monthly charged off amounts later
collected; if any.
This report shall be filed concurrently with the Cost of Gas Statement for October.
Supersedes Same Sheet Dated Meters Read On and After
8/27/04 (Cities of Nederland, Groves & Port Neches) December 28, 2005
& 12/23/02 (City of Port Arthur)
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area RATE SCHEDULE WNA
I
WEATHER NORMALIZATION ADJUSTMENT CLAUSE
A. APPLICABILITY
The Weather Normalization Adjustment Clause (WNA) shall apply to the following
general service rate schedules of Texas Gas Service Company in the incorporated areas
served in Jefferson County, Texas including Port Arthur, Nederland, Groves & Port
Neches: 10, 20, and 40. The WNA shall be effective during the September through May
billing cycles.
B. PURPOSE
The WNA refunds over-collections or surcharges under-collections of revenue due to
colder or wanner than normal weather, as established in the Company's most recent rate
filing.
C. WNA MECHANISM
In order to reflect weather effects in a timely and accurate manner, the WNA adjustment
shall be calculated separately for each billing cycle and rate schedule. The weather
factor, determined for each rate schedule in the most recent rate case, shows the effect of
one heating degree day on consumption for that rate schedule. During each billing cycle,
the weather factor is multiplied by the difference between normal and actual heating
degree days for the billing period and by the number of customers billed. This WNA
volume adjustment is priced at the current cost of service rate per Ccf to determine a
WNA revenue adjustment, which is spread to the customers in the billing cycle on a
prorata basis.
D. FILING WITH THE CITIES
The Company will file with the Cities monthly reports showing the rate adjustments for
each applicable rate schedule. Supporting documentation will be made available for
review upon request. By each October 1, the Company will file with the Cities an annual
report verifying the past year's WNA collections or refunds.
Supersedes Same Rate Schedule Dated Meters Read On and After
August 27, 2004 December 28, 2005
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area RATE SCHEDULE t0
RESIDENTIAL SERVICE RATE
APPLICABILITY
Applicable to residential consumers for all purposes.
TERRITORY
Incorporated areas served in Jefferson County, Texas including Port Arthur, Nederland, Groves and
Port Neches, Texas.
COST OF SERVICE RATES
During each monthly billing period:
A Customer Charge of $15.00 plus
All Ccf ~ $ 0.12150 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.
Weather Normalization Adjustment: The billing shall reflect adjustments in accordance with the
provisions of the Weather Normalization Adjustment Clause, Rate Schedule WNA.
Taxes: Plus applicable taxes and fees (including franchises fees) related to above.
CONDITIONS
Subject to all applicable laws and orders, and the Company'g mle~ and regulations on file with the
regulatory authority.
Supersedes Rate Schedules Meters Read On or After
10 - 8/27/04 (Cities of Nederland, Port Neches and Groves) December 28, 2005
12 - 12/23/02 (City of Port Arthur)
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area RATE SCHEDULE 20
I
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, Nederland, Groves and Port
Neches, Texas.
COST OF SERVICE RATES
During each monthly billing period:
A Customer Charge of $31.25 plus
The First 250 Ccf~ $ 0.12520 per Ccf
All Over 250 Ccf~ $ 0.09760 per Ccf
OTHER ADJUSTMENTS
Cost of Gas Componenty~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.
Weather Normalization Adjustment: The billing shall reflect adjustments in accordance with the
provisions of the Weather Normalization Adjustment Clause, Rate Schedule WNA.
Taxes: Plus applicable taxes and fees (including franchises fees) related to above.
CONDITIONS
Subject to all applicable laws and orders, and the Company's roles and regulations on file with the
regulatory authority.
Supersedes Rate Schedules Meters Read On and After
20 - 8/27/04 (Cities of Nederland, Port Neches and Groves) December 28, 2005
23 & 24 - 12/23/02 (City of Port Arthur)
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area RATE SCHEDULE 40
I
PUBLIC AUTHORITY AND SCHOOLS SERVICE RATE
APPLICABILITY
Applicable to all public and parochial schools and colleges, and to all facilities operated by
Governmental agencies not specifically provided for in other rate schedules or special contracts. This
rate is only available to full requirements customers of Texas Gas Service Company.
TERRITORY
Incorporated areas served in Jefferson County, Texas including Port Arthur, Nederland, Groves and
Port Neches, Texas.
COST OF SERVICE RATES
During each monthly billing period:
A Customer Charge of $30.00 plus
The First 250 Ccf~ $ 0.20220 per Ccf
All Over 250 Ccf~ $ 0.17640 per Ccf
OTHER ADJUSTMENT8
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.
Weather Normalization Adjustment: The billing shall reflect adjustments in accordance with the
provisions of the Weather Normalization Adjustment Clause, Rate Schedule WNA.
Taxes: Plus applicable taxes and fees (including franchises fees) related to above.
CONDITIONS
Subject to all applicable laws and orders, and the Company's rules and regulations on file with the
regulatory authority.
Supersedes Rate Schedules Meters Read On and After
40 - 8/27/04 (Cities of Nederland, Port Neches and Groves) December 28, 2005
25, 44, 45 & 46 - 12/23/02 (City of Port Arthur}
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area 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 enters into a contract
with the Company to use natural gas for the purpose of cogeneration. Cogenemtion 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 $ .0930
For the next 15,000 Ccf/Month - $ .1107 $ .0886
For the next 30,000 Ccf/Month - $. 1052 $ .0842
All Over 50,000 Ccf/Month - $ .0997 $ .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. 1-1 and 1-1-1NC.
OTHER ADJUSTMENTS
Taxes: Plus applicable taxes and fees (including franchise fees) related to above.
Supersedes Same Sheet Dated Meters Read On and After
December 23, 2002 (City of Port Arthur only) December 28,2005
August 27, 2004 (Cities of Nederland, Groves & Port Neches)
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area RATE SCHEDULE C~I
Page 2 of 2
ELECTRICAL COGENERATION AND ENERGY CONSERVATION SERVICE RATE
(Continued)
CONDITIONS
1. 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 t,[c 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.
I
Supersedes Same Sheet Dated Meters Read On and After
December 23, 2002 (City of Port Arthur only) December 28, 2005
A~c~ust 27, 2004 (Cities o~f Nederland, Groves & Port Neches)
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area RATE SCHEDULE CNG-1
COMPRESSED NATURAL GAS SERVICE RATE
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
Incorporated areas served in Jefferson County, Texas including Port Arthur, Nederland,
Groves and Port Neches, Texas.
COST OF SERVICE RATE
During each monthly billing period:
A Customer Charge of $10.00 plus -
All Ccf per monthly billing period ~ $ .0850 per Ccf
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. 1-1-INC.
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.
t
Supersedes Same Sheet Dated Meters Read On and After
August 27, 2004 (Cities of Nederland, Groves & Port Neches) December 28, 2005
December 23, 2002 (City of Port Art_hut)
TEXAS GAS SERVICE COMPANY RATE SCHEDULE T-4
South Jefferson County Service Area - Gulf Coast Region Page 1 of 1
COMMERCIAL TRANSPORTATION SERVICE RATE
APPLICABILITY
Service under this rate schedule is available to any commercial customer and to Qualified Suppliers
supplying natural gas to be transported, pursuant to Rate Schedule T-GEN (General Charges,
Provisions and Conditions) for the transportation of customer owned natural gas through the
Company's South Jefferson County distribution system for use by customers within the Company's
South Jefferson County Service Area. The customer must arrange with its gas supplier to have
the customer's gas delivered to one of the Company's existing delivery receipt points for
transportation by the Company to the customer's facilities at the customer's delivery point.
The receipt points shall be specified by the Company at its reasonable discretion, taking into
consideration available capacity, operational constraints, and integrity of the distribution
system.
TERRITORY
Incorporated areas served in Jefferson County, Texas including Port Arthur, Nederland, Groves and
Port Neches, Texas.
RATE
This rate shall be the sure-of Part A, Part B, and Part C 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 Ccfcharge:
The First 250 Ccf @ $0.12520 per Ccf
All Over 250 Ccf~ $0.09760 per~ Ccf
Part C: "Additional Charges to Cost of Service Rate" pursuant to Rate Schedule T-GEN
(General Charges, Provisions and Conditions).
CONDITIONS
See the "Special Provisions" and "Conditions" pursuant to Rate Schedule T-GEN (General
Charges, Provisions and Conditions)
I
Supersedes Rate Schedule Meters Read On and After
T-4 - August 27, 2004 (Cities of Nederland, Groves & Port Neches) January 1, 2006
To3 - March 25, 2003 (Cit_Lv of Port Arthur)
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area RATE SCHEDULE T-GEN
Page 1 of 8,
I
GENERAL CHARGES, PROVISIONS AND CONDITIONS
APPLICABILITY
Applicable to Transportation Rate Schedules.
TERRITORY
All areas served by the Company in its South Jefferson County Service Area.
ADDITIONAL CHARGES TO COST OF SERVICE RATE
During each monthly billing period, the following charges will be added in addition to any charges
specifically stated on the applicable rote schedule:
Plus:
A charge representing the customer's proportionate sham of lost and unaccounted (LAUF) gas volume within
the Service Area. The customer's share of LAUF gas will be determined by multiplying (i) the actual
volumes delivered to the customer by (ii) the pumhase/sales ratio, minus one, for the Service Area for the
twelve month period ended the preceding June 30, as defined in the Company's applicable Cost of Gas Clause
(Rate Schedule I-INC for the incorporated areas or Rate Schedule 1 for the unincorporated areas).
Purchase/sales ratios will be,rocalculated annually with the filing of the annual reconciliation required by the
Company's Cost of Gas Cladse, for application to deliveries commencing in the succeeding October.
The LAUF 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%.
The Company will require the customer to satisfy its lost and unaccounted for obligation by payment in kind
("PIK"). PIK volumes will be added to the customer usage volume to equal the total amount of gas required
to be delivered at the Company's receipt points and shall be included for purposes of calculating imbalances
in accordance with Special Provision 6 below.
Plus:
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 attributable to the transportation service performed hereunder.
Plus:
Any franchise fees, street rental fees, or other similar privilege fees attributable to the Company's services
under this tariff and payable to any municipality wherein the customer receives gas delivered hereunder.
Initial Rate Meters Read On and After
January 1, 2006
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area RATE SCHEDULE T-GEN
Page 2 of 8.
GENERAL CItARGES, PROVISIONS AND CONDITIONS
(Continued)
SPECIAL PROVISIONS
1. Definitions: As used in this tariff, the following terms will have the meanings indicated:
Aggregation Pool - One or more transportation service accounts served by the same Qualified Supplier
and aggregated pursuant to Special Provision 3 of this tariff for operational purposes, including, without
limitation, nominating, scheduling and balancing gas deliveries at designated receipt points within the
service area.
Cumulative Operational Imbalance (COl) - As of the effective date of this tariff, the initial COI for any
Aggregation Pool shall be determined by aggregating the cumulative imbalances of all accounts
participating in such Aggregation Pool, calculated as of the effective date of this tariff. Thereafter, the COl
shall be adjusted to include MOI volumes which have not been cashed out pursuant to Section 6 below.
Cumulative Tolerance Limit - With respect to any Aggregation Pool, five percent (5%) of historical
annual Deliveries to the participants of such pool for the most recent year ended on June 30. For new
participants having no historical delivery information, such calculation shall be based on forecasted
volumes which the Company determines to be reasonably reliable and reasonably accurate. The
Cumulative Tolerance Limit will be adjusted annually in October. Upon request of a Qualified Supplier,
prior to the commencement of any flow month, the Cumulative Tolerance Limit shall be adjusted
prospectively to reflect~changes to the Aggregation Pool and other known changes to anticipated
volumetric loads that the'Company determines to be reasonably reliable and reasonably accurate.
Deliveries - Volumes of natural gas delivered to the customer's premises pursuant to this tariff.
Imbalance Volumes - The volume by which the Qualified Supplier's MOI exceeds the Monthly Tolerance
Limit or the Qualified Supplier's COI exceeds the Cumulative Tolerance Limit.
Monthly Operational Imbalance (MOl) - For any month, the difference between the aggregate Receipts
for an Aggregation Pool and the sum of (i) the aggregate Deliveries for such Aggregation Pool during the
same time period, and (ii) the aggregate PIK Volumes assessed for. such period. The resulting volume
shall be adjusted to reflect any PPA. Any PPA shall be included in the MOl calculation for the month
during which the PPA is reported and the prior period MOI will not be recalculated due to PPA unless the
PPA results in new or revised cash out charges.
Initial Rate Meters Read On and After
January 1, 2006
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area RATE SCHEDULE T-GEN
Page 3
GENERAL CHARGES, PROVISIONS AND CONDITIONS
(Continued)
Monthly Tolerance Limit - With respect to any Aggregation Pool, ten percent (10%) of the aggregate
Deliveries for such month.
PIK Volumes - Volumes of gas to be delivered by the customer to the Company in satisfaction of the
customer's LAUF gas obligation.
Prior Period Adjustment (PPA) - For any Aggregation Pool, a revision to the Receipts or Deliveries for
any prior flow month which would result in an increase or decrease to the previously stated MOI for such
month.
Receipts - Volumes of natural gas received into the Company's natural gas distribution system for delivery
to a customer pursuant to this tariff.
Qualified Supplier - A supplier of natural gas for transportation to customers through the Company's
natural gas distribution system who meets the requirements of Section 8 of this tariff and has a currently
effective Supplier Service Agreement with the Company.
Supplier Service Agreement - a contract setting forth the terms upon which a supplier of natural gas may
make deliveries of customer-owned gas into the Company's distribution system for delivery to one or more
of the Company's custon~ers taking service under this tariff.
Transportation Agreement - a contract between the Company and the customer detailing the terms and
conditions upon which the customer will receive service under this tariff.
Upstream Balancing Agreement - A contract between a Qualified Supplier and its gas supplier whereby
such gas supplier agrees to retain imbalances upstream of the Company's natural gas distribution system.
2. Qualified Supplier Required - As a condition of receiving service under this Rate Schedule, the customer
must appoint no more than one Qualified Supplier for each account. The Qualified Supplier shall act on
behalf of the customer to procure gas supplies and to deliver them to the receipt points designated in the
relevant Transportation Agreement, and shall act as the Customer's agent with respect to nominations and
operational notices required under the Customer's Transportation Agreement and with respect to the
resolution of imbalances under this Rate Schedule. A customer that meets the requirements of Special
Provision 8 below may act as its own Qualified Supplier.
2.1 Change of Qualified Supplier - The customer may change its Qualified Supplier effective only
on the first day of the calendar month. The customer shall notify the Company in writing at least
thirty (30) days in advance of any change of Qualified Supplier.
Initial Rate Meters Read On and After
January 1, 2006
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area RATE SCHEDULE T-GEN
Page 4 of 8
GENERAL CHARGES, PROVISIONS AND CONDITIONS
(Continued)
3. Aggregation Pool - The Qualified Supplier shall designate no more than one Aggregation Pool within the
Service Area, and shall notify the Company as to the identity of the customer accounts comprising such
Aggregation Pool. With respect to all accounts included in any Aggregation Pool, the Qualified Supplier
shall (i) make nominations on an aggregated basis at least six (6) business days prior to the first of the
calendar month; and (ii) resolve operational imbalances on an aggregated basis in accordance with Special
Provision 6 below.
4. Customer Volume Information - The Company shall supply to the Qualified Supplier, designated by the
customer, information as to such customer's delivery volumes each month, with the imbalance statements
described at Special Provision 6.4 below.
5. Imbalances
5.1 Monthly Imbalances - The Qualified Supplier shall not allow its MOI for any Aggregation Pool to
exceed the Monthly Tolerance Limit in any month. In the event the MOI exceeds the Monthly
Tolerance Limit, the parties shall resolve the value of such Imbalance Volumes using the cashout
procedure set forth in Special Provision 6 below. MOI amounts that do not exceed the Monthly
Tolerance Limit shall be added to the Qualified Supplier's COI.
5.2 Cumulative Imt~alances - The Qualified Supplier shall not allow its COI for any Aggregation
Pool to exceed ~e Cumulative Tolerance Limit at any time. In the event the Qualified Supplier's
COI exceeds the Cumulative Tolerance Limit, the parties shall resolve the value of such Imbalance
Volumes using the cashout procedure set forth in Special Provision 6 below. The initial COl for
any Aggregation Pool shall be calculated using the imbalance volumes attributable to the
participants for the flow month immediately preceding the effective date hereof.
5.3 Upstream Imbalances - For purposes of Special Provisions 5 and 6 herein, no imbalances will be
attributed to a Qualified Supplier on account of volumes delivered subject to an Upstream
Balancing Agreement which has been acknowledged in writing by the upstream transporter
retaining the imbalance.
6. Cashout Procedure
6.1 Over Deliveries - For MOI's or COI's where receipts exceed deliveries by more than the
applicable tolerance limit, the Company shall pay to the Qualified Supplier an amount equal to: (i)
the Imbalance Volume, stated in MMBtu, multiplied by 90% of the "Delivered Spot-Gas Prices
Houston Ship Channel/Beaumont, Texas" Index (large packages only) as published in the first
issue of Inside F.E.R.C. 's Gas Market Report for the month in which the applicable tolerance limit
was exceeded.
Initial Rate Meters Read On and After
January 1,2006
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area RATE SCHEDULE T-GEN
Page 5 of 8
GENERAL CHARGES, PROVISIONS AND CONDITIONS
(Continued)
6.2 Under Deliveries - For MOI's or COI's where deliveries exceed receipts by more than the
applicable tolerance limit, the Qualified Supplier shall pay to the Company an amount equal to: (i)
the Imbalance Volume, stated in MMBtu, multiplied by the Company's Cost of Purchased Gas,
stated in MMBtu, as defined by the Company's applicable Cost of Gas Clause (Rate Schedule l-
INC for the incorporated areas or Rate Schedule 1 for the unincorporated areas) for the Service
Area and filed monthly with the appropriate regulatory authority for the month in which the
applicable tolerance limit was exceeded, plus (ii) any franchise fees assessed on such payment by
the municipality in which deliveries were made to participants in the Aggregation Pool which
generated the Imbalance, plus (iii) any other taxes, user fees or other sums assessed on such
payment by any governmental authority.
6.3 Exemption from Fees and Taxes - If the Qualified Supplier claims that any Imbalance volumes
are exempt from franchise fees, taxes, user fees or other governmental assessments, the Qualified
Supplier shall provide to the Company such evidence of the exemption as the Company might
reasonably require. In addition, the Qualified Supplier shall provide to the Company each month
such supporting documentation as the Company may reasonably require to determine what portion
of the payment described at Special Provision 6.2 above is exempt from such assessments.
6.4 Invoicing/Payment - For each flow month, within fifteen (15) days following the Company's
receipt of volum? ~statements from the upstream pipelines making deliveries into the Company's
system for an Aggregation Pool, the Company shall provide to the Qualified Supplier an imbalance
statement stating the MOI, COl, any resulting cashout payments as calculated pursuant to Sections
6.1 and 6.2 above, as well as usage and PIK volumes for each customer served by the supplier.
Payments shall be due no later than fifteen (15) days following the invoice date.
6.5 Effect of Cashout on PGA - All amounts accrued under this Special Provision 6 excluding
franchise fees and sales tax if found to be applicable shall be recorded to the PGA "Reconciliation
Account" as defined in Rate Schedule 1-1NC for the incorporated areas or Rate Schedule 1 for the
unincorporated areas.
6.6 Allocation to Pool Participants - The Qualified Supplie~ shall be responsible for collecting from or
remitting to its customers all funds received or paid under this Special Provision 6 that are due to
or from the customer.
7. Company's Liability for Cashout - The Company shall have no liability to any customer in connection
with the failure of the customer's Qualified Supplier to remit to the customer any cashout payment made by
the Company to the Qualified Supplier.
Initial Rate Meters Read On and After
January 1, 2006
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area RATE SCHEDULE T-GEN
Page 6 0rs,
I
GENERAL CHARGES, PROVISIONS AND CONDITIONS
(Continued)
8. Supplier Qualifications - The Company may refuse to accept deliveries of gas into its system from any
supplier who has failed to meet the following conditions:
8.1 Financial Integrity - The Company shall have the right to establish reasonable financial and non-
discriminatory credit standards for Qualified Suppliers. Any supplier desiring to become a
Qualified Supplier must submit to the Company an audited balance sheet and financial statements
for the previous three (3) years, along with two (2) trade and at least one (I) banking reference. To
the extent that such information is not publicly available, the supplier shall supply the Company
with a list of all corporate affiliates, parent companies, subsidiaries and affiliated partnerships.
Any supplier who becomes a Qualified Supplier must provide updated financial information at the
Company's request.
8.2 Credit Enhancement - In the event a supplier fails to demonstrate to the Company's reasonable
satisfaction that it has met the Company credit standards, the Company shall require such supplier
to provide one of the following: (i) a cash deposit; (ii) an irrevocable letter of credit issued by a
commercial bank reasonably acceptable to the Company; (iii) a surety bond issued by a reputable
insurance company listed in AM Best's Insurance Ratings with a rating of "B+ VII" or better, and
authorized to engage in the business of insurance in the State of Texas; or (iv) a financial guaranty
from a guarantor who meets the Company's credit standards.
8.3 Termination of Qualified Supplier - The Company shall have the right to terminate a Qualified
Supplier's Supplier Service Agreement and its eligibility to make deliveries into the Company's
local distribution system in the event that such Qualified Supplier fails to comply with or perform
any of the obligations on its part established in this tariff or in the Supplier Service Agreement.
Notice shall be given to the Qualified Supplier no less than ten days prior to the end of the calendar
month, and shall be effective upon the first day of the succeeding month unless, within such ten
day period, the Qualified Supplier shall remedy such failure to the full satisfaction of the Company.
Termination of such Qualified Supplier's eligibility and its Supplier Service Agreement shall not
release the Qualified Supplier from its obligation to make payments due to the Company for
transactions occurring prior to the effective date of termination.
9. Withdrawal of Qualified Supplier - If a Qualified Supplier ceases for any reason (including the
Company's termination of the Supplier Service Agreement) to supply customers within the Service Area,
the final COI for the affected Aggregation Pool shall be calculated as of the end of the flow month in which
such cessation occurs, and shall be cashed out as follows:
9.1 Over Deliveries - For final COI's where receipts exceed deliveries, the Company shall pay to the
Supplier an amount equal to: (i) the final COI volume, stated in MMBtu, multiplied by 90% of the
"Delivered Spot-Gas Prices Houston Ship Channel/Beaumont, Texas" Index (large packages only)
as published in the first issue of Inside F.E.R.C. 's Gas Market Report for the month for which the
final COI was calculated.
Initial Rate Meters Read On and After
January 1, 2006
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area RATE SCHEDULE T-GEN
Page 7 of 8
GENERAL CHARGES, PROVISIONS AND CONDITIONS
(Continued)
9.2 Under Deliveries - For final COI's where deliveries exceed receipts limit, the Supplier shall pay
to the Company an amount equal to: (i) the final COl volume, stated in MMBtu, multiplied by the
Company's Cost of Purchased Gas, stated in MMBtu, as defined by the Cost of Gas Clause (Rate
Schedule I-INC for the incorporated areas or Rate Schedule I for the unincorporated areas) for the
Service Area and filed monthly with the appropriate regulatory authority for the month in which
the month for which the final COI was calculated, plus (ii) any franchise fees assessed on such
payment by the municipality in which deliveries were made to participants in the Aggregation Pool
which generated the Imbalance, plus (iii) any other taxes, user fees or other sums assessed on such
payment by any governmental authority.
9.3 Invoicing/Payment - The final cashout payment shall be invoiced and paid in accordance with
Special Provision 6.4 above.
9.4 Continued Service - Upon the withdrawal of a Qualified Supplier, at the customer's request, the
Company shall provide continued service under the applicable general service rote schedule until
the customer designates a successor Qualified Supplier. In the event sales service commences on
any day other than the first day of a calendar month, all volumes delivered to the customer within
such month shall be deemed sales volumes for purposes of invoicing the customer and for
calculating the final COl. Such sales shall be subject to curtailment plans approved from time to
time by the Rail(pad Commission of Texas or in the absence of an applicable plan, consistent with
Transporter's policies regarding curtailment and stand-by supplies of transport gas, as such policies
may change in Tmnsporter's reasonable discretion.
CONDITIONS
1. Services rendered under this tariff are subject in all respects to applicable laws, rules, and regulations
from time-to-time in effect.
2. All volumes of gas transported pursuant to this tariff shall be 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. Service under this tariff is conditioned upon the customer's execution of and subject in all respects to the
terms and conditions of the Transportation Agreement and all amendments and modifications thereto.
I
Initial Rate Meters Read On and After
January 1, 2006
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area RATE SCHEDULE T-GEN
Pal~e 8 of 8
GENERAL CHARGES, PROVISIONS AND CONDITIONS
(Continued)
4. Transportation of natural gas hereunder may be interrupted or curtailed to preserve the operational
safety, reliability, or integrity of the distribution system or in case of shortage or threatened shortage of
gas supply from any cause whatsoever, to conserve gas for residential and other higher priority
customers served. 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 applicable
general service rote schedule which would otherwise be available to such customer.
5. The Company shall have the right to terminate service under this tariff in the event the customer is no
longer served by a Qualified Supplier. Termination of service shall not relieve the customer of any
liability accrued prior to the effective date of such termination. The Company shall provide continued
service under the applicable general service rate schedule until the customer designates a successor
Qualified Supplier. In the event sales service commences on any day other than the first day of a
calendar month, all volumes delivered to the customer within such month shall be deemed sales volumes
for purposes of invoicing the customer and for calculating the final COl. Such sales shall be subject to
curtailment plans approved from time to time by the Railroad Commission of Texas or in the absence of
an applicable plan, consistent with Transporter's policies regarding curtailment and stand-by supplies of
transport gas, as such policies may change in Transporter's reasonable discretion.
6. If applicable, air conditi( ,lng equipment must be inspected and verified as safe and in service by qualified
company personnel.
Initial Rate Meters Read On and After
January 1, 2006
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area - Gulf Coast Region RATE SCHEDULE t0
I
RESIDENTIAL SERVICE RATE
APPLICABILITY
Applicable to residential consumers for all purposes.
TERRITORY
Incorporated areas served in Nederland, Groves and Port Neches,
Texas.
COST OF SERVICE RATES
During each monthly billing period:
A Customer Charge of $10.00 plus
All Ccf~ $ 0.1099 per Ccf
OTHER ADJUSTMENTS
Cost of Gas Component: r cost of service set forth above shall be increased by
the amount of the Cost for the billing month computed in accordance with the
provisions of Rate
The billing shall reflect adjustments in accordance with the
provisions Adjustment Clause, Rate Schedule WNA.
Taxes: Plus franchises fees) related to above.
CONDITIONS
Subject to and orders, and the Company's mle~ and regulations on file with the
I
Supersedes Same Sheet Dated Meters Read On or After
August 27, 2004 December 28, 2005
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area - Gulf Coast Region RATE SCHEDULE 12
RESIDENTIAL SERVICE RATE
APPLICABILITY
Applicable to residential consumers for all purposes.
TERRITORY
Incorporated areas served in the City
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 ADJUSTMENTS
for cost of service set forth above shall be increased by
the amount of the month computed in accordance with the
forth above are net for prompt payment. After 15 days
following ~ additional five (5%) percent penalty will be added if the bill has
not been paid.
Taxes: Plus ~ fees (including franchises fees, related to above.
1. Subject : laws and orders, and the Company's roles and regulations on file with the
regulatory ~
Supersedes Same Sheet Dated Meters Read On or After
December 23 2002 De~emher 9R
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area - Gulf Coast Region RATE SCHEDULE 20
I
COMMERCIAL SERVICE RATE
APPLICABILITY
Applicable to commercial consumers for all purposes and ~pecifically
provided for.
TERRITORY
Incorporated areas served in Jefferson County, Nederland, Groves and Port Neches,
Texas.
COST OF SERVICE RATES
During each monthly billing period:
A Customer Charge of $14.50 plus
The First 250 Ccf@ $ 0.0992 per Ccf
All Over 250 Ccf~ $ 0.0716 per Ccf
OTHER ADJUSTMENTS
cost of service set forth above shall be increased by the
amount of the Cost of the billing month computed in accordance with the
provisions of Rate
Weather billing shall reflect adjustments in accordance with the
provision~ ustment Clause, Rate Schedule WNA.
Taxes: Plus ~ fees (including fi-anchises fees) related to above.
CONDITIONS
Subject to all orders, and the Company's rules and regulations on file with the
Supersedes Same Sheet Dated Meters Read On and After
August 27, 2004 December 28, 2005
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area - Gulf Coast Region RATE SCHEDULE 23
COMMERCIAL SERVICE RATE
.APPLICABILITY
Applicable to commercial consumers for all purposes and
provided for.
TERRITORY
Incorporated areas served in the City of Port
COST OF SERVICE RATES
During each monthly billing period:
A Customer Charge of plus -
First 400 Ccf ~ No Charge
All Over 400 Ccf~ $ .14289 per Ccf
OTHER ADJUSTMENTS
Cost of Gas ost of service set forth above shall be increased by the
amount of the Cost of the billing month computed in accordance with the
Prom t Ppk..~yment forth above are net for prompt payment. After 15 days
following rendering five (5%) percent penalty will be added if the bill has
not been paid.
Taxes: Plus a fees (including franchises fees) related to above.
CONDITIONS
1. and orders, and the Company's rules and regulations on file with the
I
Supersedes Same Sheet Dated Meters Read On and After
December 23, 2002 December 28, 2005
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area - Gulf Coast Region RATE SCHEDULE 24
I
LARGE VOLUME COMMERCIAL SERVICE RATE
APPLICABILITY
Applicable to any large volume commercial ~ taken or will take and pay for gas
service under this large volume rate for not months.
TERRITORY
Incorporated areas served in the City of Port i
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: set forth above shall be increased by the
amount of the Cost of~ for the billing month computed in accordance with the
set forth above are net for prompt payment. After 15 days
following renderin five (5%) percent penalty will be added if the bill has
not been paid.
Taxes: Plus a franchises fees) related to above.
CONDITIONS
1. and the Company's r~les and regulations on file with the
I
Supersedes Same Sheet Dated Meters Read On and After
December 23, 2002 December 28, 2005
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area - Gulf Coast Region RATE SCHEDULE 25
PAROCHIAL SCHOOL SERVICE RATE
APPLICABILITY
Applicable to gas used in parochial schools.
TERRITORY
Incorporated areas served in the City
COST OF SERVICE RATES
During each monthly billing period:
A Customer Charge of $35.00 plus -
All Ccfper monthl, $ .09911 per Ccf
OTHER ADJUSTMENTS
for cost of service set forth above shall be increased by the
amount of the Cost for the billing month computed in accordance with the
provisions of Rate
set forth above are net for prompt payment. After 15 days
an additional five (5%) percent penalty will be added if the bill has
not been paid.
Taxes.: and fees (including franchises fees) related to above.
CONDr
1. laws and orders, and the Company's ~les and regulations on file with the
Supersedes Same Sheet Dated Meters Read On and After
December 23, 2002 December 28, 2005
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area - Gulf Coast Region RATE SCHEDULE 33
INDUSTRIAL SERVICE RATE
APPLICABILITY
Applicable to industrial consumers for all purposes.
TERRITORY
Incorporated areas served in the City of Port /
COST OF SERVICE RATES
During each monthl'
A Customer Charge of $41.15 plus -
First 500 Ccf @ No Charge
All Over 500 Ccf~ $ .21028 per Ccf
OTHER ADJUSTMENTS
Cost of Gas rates for cost of service set forth above shall be increased by
the amount of t for the billing month computed in accordance with
the provisions c
are net for prompt payment. After 15 days
following: the bill, an additional five (5%) percent penalty will be added if the bill
has
Taxes: ~ taxes and fees (including franchises fees) related to above.
1. laws and orders, and the Company's rules and regulations on file with the
I
Supersedes Same Sheet Dated Meters Read On and After
December 23, 2002 December 28, 2005
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area - Gulf Coast Region RATE SCHEDULE 34
I
LARGE VOLUME INDUSTRIAL SERVICE RATE
APPLICABILITY
Applicable to any large volume industrial gas taken or will take and pay for gas
service under this large volume rate for not le
TERRITORY
Incorporated areas served in the Cit'
COST OF SERVICE RATES
During each monthly billing period:
A Customer Charge of $300.00 plus -
All Ccfper monthly billing ~ $ .21028 per Ccf
OTHER ADJUSTMENTS
Cost of Gas Component: for cost of service set forth above shall be increased by the
amount of the Cost for the billing month computed in accordance with the
provisions of Rate
set forth above are net for prompt payment. After 15 days
following t additional five (5%) percent penalty will be added if the bill has
not been paid.
Taxes: Plus fees (including franchises fees) related to above.
1. and orders, and the Company's rules and regulations on file with the
Supersedes Same Sheet Dated Meters Read On and After
December 23, 2002 December 28, 2005
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area - Gulf Coast Region RATE SCHEDULE 40
I
PUBLIC AUTHORITY AND SCHOOLS SERVICE RATE
APPLICABILITY
Applicable to all public and parochial schools to all facilities operated by
Governmental agencies not specifically provided special contracts. This
rate is only available to full requirements custome 7ompany.
TERRITORY
Incorporated areas served in Jefferson Nederland, Groves and Port Neches,
Texas.
COST OF SERVICE RATES
During each monthly billing period:
A Customer Charge of $13.00 plus
The First 250 Ccf~ $ 0.1286 per Ccf
All Over 250 Ccf~ $ 0.1028 per Ccf
OTHER
Cost of¢ >f service set forth above shall be increased by the
amount of the for the billing month computed in accordance with the
provisions of Rate, I-INC.
Weather __ The billing shall reflect adjustments in accordance with the
Clause, Rate Schedule WNA.
Taxes: Plus s (including franchises fees)related to above.
Subject to and orders, and the Company's roles and regulations on file with the
regulatory
Supersedes Same Sheet Dated Meters Read On and After
August 27, 2004 December 28, 2005
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area - Gulf Coast Region RATE SCHEDULE 44
I
PUBLIC AUTHORITY
APPLICABILITY
Applicable to public authority consumers for all
TERRITORY
Incorporated areas served in the City
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
Cost of { forth above shall be increased by the
amount of the for the billing month computed in accordance with the
provisiom
The rates set forth above are net for prompt payment. After 15 days
an additional five (5%) percent penalty will be added if the bill has
not been
Taxes: (including franchises fees) related to above.
1. Sub laws and orders, and the Company's roles and regulations on file with the
regul~
I
Supersedes Same Sheet Dated Meters Read On and After
December 23, 2002 December 28, 2005
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area - Gulf Coast Region RATE SCHEDULE 45
LARGE VOLUME PUBLIC AUTHORITY SERVICE RATE
APPLICABILITY
Applicable to any large volume public authorit, taken or will take and pay for
gas service under this large volume rate for not le months.
TERRITORY
Incorporated areas served in the
COST OF SERVICE RATES
During each monthly billing period:
A Customer Charge of $300.00 plus -
All Ccfper monthly billing $ .21113 per Ccf
OTHER ADJUSTMENTS
Cost of G~ for cost of service set forth above shall be increased by the
amount of the Cost for the billing month computed in accordance with the
provisions of Rate
set forth above are net for prompt payment. After 15 days
followin additional five (5%) percent penalty will be added if the bill has
not been paid.
Taxes: Plus ~ :s and fees (including franchises fees) related to above.
1. Subj~ and orders, and the CompanS,'s roles and regulations on file with the
I
Supersedes Same Sheet Dated Meters Read On and After
December 23, 2002 December 28, 2005
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area - Gulf Coast Region RATE SCHEDULE 46
I
PUBLIC SCHOOL SERVICE RATE
APPLICABILITY
Applicable to gas used in public schools.
TERRITORY
Incorporated areas served in the City
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 Comvonent: : for cost of service set forth above shall be increased by the
amount of the Cost for the billing month computed in accordance with the
set forth above are net for prompt payment. After 15 days
following ~dditional five (5%) percent penalty will be added if the bill has
not been paid.
Taxes: Plus (including franchises fees) related to above.
1. Sub and orders, and the Company's rules and regulations on file with the
I
Supersedes Same Sheet Dated Meters Read On and After
December 23, 2002 December 28, 2005
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area - Gulf Coast Region RATE SCHEDULE C-1
Page l of 2
ELECTRICAL COGENERATION AND ENERGY CONSERVATION SERVICE RATE
APPLICABILITY
Service under this rate to any customer who enters into a contract
with the Company to use the purpose of cogeneration. Cogeneration is
defined as the use electricity with recapture of by-product
heat in the form industrial process use, space heating, food
processing oF other
TERRITORY
County, Texas including Nederland, Groves and
Po~t Neches, T~
COST OF
During
Nov. - Apr. May - Oct.
Winter Summer
of $300.00 per meter plus -
For :f/Month - $. 1162 $ .0930
:f/Month - $. 1107 $ .0886
~ 30,000 Ccf/Month - $. 1052 $ .0842
50,000 Ccf/Month - $ .0997 $ .0798
a to the cost of service set forth above, each,customer's bill shall include the
for the billing month determined in accordance with the provisions of the
Rate Schedule No. 1-1-INC.
OTHER ADJUSTMENTS
Taxes: Plus applicable taxes and fees (including franchise fees) related to above.
I
Supersedes Same Sheet Dated Meters Read On and After
August 27, 2004 December 28, 2005
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area - Gulf Coast RegionRATE SCHEDULE C-1
Page 2 of.2
ELECTRICAL COGENERATION AND ENERGY CONSERVATION SERVICE RATE
(Continued)
CONDITIONS
1. Gas taken under this rate shall purpose of cogeneration as
defined in the Applicability section of and not for other purposes.
The gas taken under this rate will be
2. This rate will not be available
3. For the purpose of this rate, the 60 percent or greater. The
annual load factor is defined total annual consumption divided by
the customer's peak twelve. If less than a 60 percent load
factor occurs for a twelve the rate charged will revert back to the rate
that the customer would been served under. A continuous twelve
month period of 60 load factor must precede a return to the
cogeneration rate.
4. To qualify the customer's peak summer month's load must
be at least 75% peak winter month's load. Failure to meet this
requirement will to the customer's October bill equal to the
difference summer rates times that years total May through
September
5. The / customer served under this rate schedule shall be the
same as priority which would pertain if gas were used directly to
provide as defined and listed in paragraph 14.2 of the Company's
6. to applicable laws, rules and regulations from time to time in
Supersedes Same Sheet Dated Meters Read On and After
August 27, 2004 December 28, 2005
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area - Gulf Coast Region RATE SCHEDULE CNG-1
COMPRESSED NATURAL GAS SERVICE RATE
APPLICABILITY
Service under this rate schedule is for usage where customer
purchases natural gas which will be a motor fuel. Service will be
separately metered.
TERRITORY
All areas served by the Texas Service Area.
COST OF SERVICE RATE
During each monthly billing 1:
A Customer Charge of $10.00 plus -
All Ccf per monthly billi $ .0850 per Ccf
COST OF GAS
In addition to the forth above, each customer's bill shall include the
Cost of Gas for t determined in accordance with the provisions of the
Cost of Gas 1-1 and 1-11NC.
Taxes: (including franchise fees) related to above.
CONDITII
1. lpplicable laws, roles, and regulations from time to time in
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
December 23, 2002 (City of Port Arthur only) December 28, 2005
TEXAS GAS SERVICE COMPANY RATE SCHEDULE T-3
South Jefferson County Service Area Page I of 2
TRANSPORTATION SERVICE RATE
.APPLICABILITY
Service under this rate schedule is available to any cu of customer owned
natural gas through the Company's South Jefferson system for use by customers
within all areas in the Company's South Jefferson (
TERRITORY
All areas served by the Company in its Service Area.
RATE
This rate shall be the sum of Part A, Pe and Part E as dascdbed below.
Part A: A customer charge of $300.~
Part B: All volumes of during each month in accordance with this
schedule shall be Ccf charge:
$. 14609 per Ccf
.14288 per Ccf
.13913 per Ccf
.22828 per Ccf
.20071 per Ccf
Authority .21264 per Ccf
Part C: Buyer , its lost and unaccounted for gas obligation by payment in
kind. lost and unaccounted for gas is not paid for in kind, a charge will be
made cost of lost and unaccounted for gas associated with the
transported for the customer. This charge will be calculated by
~lume delivered to the customer.by the purchase/sales ratio minus one
Jefferson County Service Area as calculated for the twelve-
in the previous June based on actual purchase and actual sales as
regulatory bodies. The resultant calculated lost and unaccounted for
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
March 25, 2003 (City of Port Arthur) December 28, 2005
TEXAS GAS SERVICE COMPANY RATE SCHEDULE T-3
South Jefferson County Service Area Page 2 of 2
TRANSPORTATION SERVICE RATE
(Continued)
Part D: A charge will be made each month receipts taxes paid to
the State of Texas pursuant to the CIV. STAT.
as such may be amended from the transportation
service performed hereunder.
Part E: A charge will be made each month to franchise fees.
CONDITIONS
1. Subject in all respects to applicable laws from time-to-time in effect.
2. Transportation of customer r shall be limited to natural gas of equal or
higher quality than natural gas the Company's supplier(s). All gas
delivered to the customer shall be same quality as that gas received by thc
Company for transportation.
3. Transportation of customer hereunder is subject in all respects to terms and
conditions of the into between the customer and Company
and modifications thereto.
4. With respect to the deliver at any particular time, the curtailment
priority of any customer: same as the curtailment priority
established for ,pursuant to the Company's rate schedule which would
otherwise be available ~
Supersedes Same Sheet Dated Meters Read On and After
March 25, 2003 (City of Port Arthur) December 28, 2005
TEXAS GAS SERVICE COMPANY RATE SCHEDULE T-4
South Jefferson County Service Area - Gulf Coast Region Page I of 2
COMMERCIAL TRANSPORTATION SERVICE RATE
APPLICABILITY
Service under this rate schedule is available to any transportation o£
customer owned natural gas through the Company's South distribution system for
use by customers within the Company's South Jefferson
TERRITORY
Incorporated areas served in Jefferson County, Groves and Port Neches,
Texas.
RATE
This rate shall be the sum of Part A, Part B, Part E as described below.
Part A: A customer charge of $287.23
Part B: All volumes of natural each month in accordance with this
schedule shall be b
The First 250 ~cf~ $0.0992 per Ccf
All Over 250 Cdcf ~ $0.0716 per Ccf
Part C: Buyer s lost and unaccounted for gas obligation by payment in
kind. However, for gas is not paid for in kind, a charge will be
made cost of lost and unaccounted for gas associated with the
volumes for the customer. This charge will be calculated by
multiplying to the customer by the purchase/sales ratio minus one
for the Jefferson County Service Area as calculated for the twelve-
month June based on actual purchase and actual sales as
reported The resultant cal~lated lost and unaccounted for
volume by the Company's cost of purchased gas for the South
Area applicable to the billing period for which service is
and taxes, to calculate an amount to be billed to the customer
; and unaccounted for factor as determined above shall in no event
exceed -1 and must fall within the range of zero (0) to 5.26%.
Supersedes Same Sheet Dated Meters Read On and After
August 27, 2004 December 28, 2005
TEXAS GAS SERVICE COMPANY RnTE SCHEDULE X-4
South Jefferson County Service Area - Gulf Coast Region Page :2 of 2
COMMERCIAL TRANSPORTATION SERVICE RATE
(Continued)
Part D: A charge will be made each month to receipts taxes paid to the
State of Texas pursuant to the REV. CIV. STAT. as such
may be amended from time-to-time which transportation service
performed hereunder.
Part E: A charge fany applicable franchise fees.
CONDITIONS
1. Subject in all respects to applicable laws. from time-to-time in effect.
2. Transportation ot shall be limited to natural gas of equal or
higher quality than natural gas the Company's supplier(s). All gas
delivered to the customer shall be same quality as that gas received by the
Company for transportation.
3. Transportation of customer hereunder is subject in all respects to terms and
conditions of the into between the customer and Company
prio and modifications thereto.
4. With respect to the deliver gas at any particular time, the curtailment
priority of any customer ~ ;chedule shall be the same as the curtailment priority
established for other ,pursuant to the Company's rate schedule which would
otherwise be available
Supersedes Same Sheet Dated Meters Read On and After
August 27, 2004 December 28, 2005
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area - Gulf Coast Region RATE SCHEDULE ,iS
LARGE VOLUME PUBLIC AUTHORITY SERVICE RATE
APPLICABILITY
Applicable to any large volume public authorit, will take and pay for
gas service under this large volume rate for s.
TERRITORY
Incorporated areas served in the Cit,
COST OF SERVICE RATES
During each monthly billing period:
A Customer Charge of $300.00 plus -
All Ccfper $ .21113 per Ccf
OTHER ADJUSTMENTS
Cost of Gas of service set forth above shall be increased by the
amount of the Cost for the billing month computed in accordance with the
provisions of Rate ',
Prom set forth above are net for prompt payment. After 15 days
following additional five (5%) percent penalty will be added if the bill has
not been paid.
Taxes: Plus s and fees (including franchises fees) related to above.
1. and orders, and the Company's rules and regulations on file with the
I
Supersedes Same Sheet Dated Meters Read On and After
December 23, 2002 December 28, 2005
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area - Gulf Coast Region RATE SCHEDULE 45
PUBLIC SCHOOL SERVICE RATE
APPLICABILITY
Applicable to gas used in public schools.
TERRITORY
Incorporated areas served in the City of Port
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 Com on.p_9_~: ~ for cost of service set forth above shall be increased by the
amount of the Cost for the billing month computed in accordance with the
provisions
set forth above are net for prompt payment. After 15 days
following renderin five (5%) percent penalty will be added if the bill has
not been paid.
Taxes: Plus (including franchises fees) related to above.
1. Sub and orders, and the Company's mJes and regulations on file with the
Supersedes Same Sheet Dated Meters Read On and After
December 23, 2002 December 28, 2005
TEXAS GAS SERVICE 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 to any customer who enters into a contract
with the Company to use ! the purpose of cogeneration. Cogeneration is
defined as the use electricity with recapture of by-product
heat in the form for industrial process use, space heating, food
processing or other
TERRITORY
Incorporated County, Texas including Nederland, Groves and
Port Neches, T,
COST (
period:
Nov. - Apr. May - Oct.
Winter Summer
A Cu per meter plus -
For $. 1162 $ .0930
Ccf/Month - $. 1107 $ .0886
30,000 Ccf/Month - $. 1052 $ .0842
50,000 Ccf/Month - $ .0997 $ .0798
service set forth above, each .customer's bill shall include the
for the billing month determined in accordance with the provisions of the
?Gas Clause, Rate Schedule No. 1-1-INC.
OTHER ADJUSTMENTS
Taxes: Plus applicable taxes and fees (including franchise fees) related to above.
Supersedes Same Sheet Dated Meters Read On and After
August 27, 2004 December 28, 2005
TEXAS GAS SERVICE COMPANY
South Jefferson County Service Area - Gulf Coast Region RATE SCHEDULE C-I
Page 2 of 2
ELECTRICAL COGENERATION AND ENERGY CONSERVATION SERVICE RATE
(Continued)
CONDITIONS
I. Gas taken under this rate shall be used purpose of cogeneration as
defined in the Applicability section of and not for other purposes.
The gas taken under this rate will be ~
2. This rate will not be available for
3. For the purpose of this rate 60 percent or greater. The
annual load factor is defined total annual consumption divided by
the customer's peak month e. If less than a 60 percent load
factor occurs for a twelve r the rate charged will revert back to the rate
that the customer would been served under. A continuous twelve
month period of 60 load factor must precede a return to the
cogeneration rate.
4. To qualify for the customer's peak summer month's load must
be at least 75% peak winter month's load. Failure to meet this
requirement will ustment to the customer's October bill equal to the
difference summer rates times that years total May through
Se
5. The customer served under this rate schedule shall be the
same as priority which would pertain if gas were used directly to
provide as defined and listed in paragraph 14.2 of the Company's
6. to applicable laws, rules and regulations from time to time in
Supersedes Same Sheet Dated Meters Read On and After
August 27, 2004 December 28, 2005