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GAS ADJUSTMENTS EFFECTIVE DECEMBER 1, 1997lrela FROM: sJ CLF4RWATER GASSYSTEM Interoffice Correspondence Sheet . i° NOV '2 6 1997 Michael J. Roberto, City Manager Chuck Warrington, Gas System Managing Director o)t COPIES: Kathy Rice, Deputy City Manager; Rick Hedrick, Assistant City Manager; Cyndie Goudeau, City Clerk; Margie Simmons, Finance Director; John Scott, Asst. Director Finance /UCS; Tom Madley, Senior Accountant /UCS; Karen Miles, Accounting Manager; CGS Management Team SUBJECT: GAS ADJUSTMENTS EFFECTIVE DECEMBER 1, 1997 DATE: November 25, 1997 All of our adjustment clauses are in line with our September projections except that Propane (LP) Gas supply is beginning its anticipated seasonal rise in price. We have taken steps to dampen the effect this year; however, we need to increase our LP Purchased Gas Adjustment (PGA) pricing somewhat now in order to avoid running negative balances and reduce the impact on LP rates later this winter. Our latest LP supply purchases have been 540 and 580 and this has mixed with the gas in our tanks at 52.40. Therefore, we are requesting an increase in our LP PGA to 550 for December. We are requesting no other changes in our adjustment clause rates at this time. Therefore, we are recommending your approval of the following rates to become effective for billings rendered on and after December 1, 1997: Natural Gas Firm Standard Rate Schedule PGA ....... $0.415 per therm (no change) Natural Gas Interruptible and Contract (Non- Standard) Rate Schedule PGA ............. $0.295 per therm (no change) Propane (LP) Gas Rate Schedule PGA .................... $0.550 per gallon (up 40) _ $0.601 per therm equivalent (up 4.40) Energy Conservation Adjustment (ECA) ............... $0.030 per therm (no change) _ $0.027 per gallon of LP (no change) /_ AU -cc C Michael J Roberto, City Lager � November 25, 1997 Page 2 Environmental Imposition Adjustment (EIA) ......... $0.010 per therm (no change) = $0.009 per gallon of LP (no change) Weather Normalization Adjustment (WNA) .......... $0.050 per therm (no change) = $0.046 per gallon of LP (no change) Attachment #1 shows our FY 97/98 fiscal year -to -date history of propane (LP) gas supply costs, and Attachments #2 and #3 show the impact of these adjustment clause changes on our overall LP and Natural Gas rates, respectively. It is our plan to use the above proposed adjustments for billings through December 31, 1997, when our WNA is scheduled to end, unless there is a significant change in our forecasts or we project an over /under recovery in excess of the thresholds as prescribed in our rate ordinance. We will continue to track these balances monthly, make monthly projections of these factors based on market conditions, and let you know if any of these get significantly out of balance. Mike, I would appreciate your approval of these revised adjustment rates so that we can get this information to UCS in order to make the appropriate adjustments in the billing formulas in time for the December 1st billings. If you have any questions on this, please call me. CSW /csw Attachments Approved: Michael J. Roberto, City Manager UAMy Documents\ MSOFFICE\ WINWORD \GASRATES \GASADJ12.97.doc MEN �MENNEN ��� _MONSOON MENEM !NOMINEE �� MMMIMEI MENNE■ MINECOR SOMEONE MENNEN lMMMMMMMlM CSW:11 /25/97 ATTACHMENT #2 CLEARWATER GAS SYSTEM BTU Factor. 2.714 Gallons/100 cubic feet (CCF) PROPANE (LP) RATE BILLING FACTORS BTU Factor. 2.483 Therms/100 cubic feet (CCF) FOR DECEMBER 1, 1997 - DECEMBER 31, 1997 BASED ON APPROVED GAS ADJUSTMENT FACTORS Therm Factor. 0.915 Therms/Gallon RLP MLP GLP LLP LPV LPS Contract LP Svc. CLP Appl. Annual Gallon (Therm) Range NA NA 0 - 2,499 Gallons 2,500 Gallons & Up NA NA NA or Other Rate Determinant (1 - 3 Units) (4 + Units) (0 -2,287 Therms) (2,288 Therms & Up) Monthly Customer Charge $7.00 $15.00 $15.00 $20.00 $7.00 Rest. or $25.00 Set By Contract $15.00 GS if not Non -Fuel Energy Charge: prev. billed Q premise Non -Fuel Energy Charge /Gallon $0.750 $0.750 $0.390 $0.320 $0.100 $0.390 By Contract /Therm $0.820 $0.820 $0.426 $0.350 $0.109 $0.426 By Contr. Energy Conservation Adj. /Gallon 0.027 0.027 0.027 0.027 0.027 0.027 NA (ECA) /Therm 0.030 0.030 0.030 0.030 0.030 0.030 NA Environm'I Imposition Adj. /Gallon 0.009 0.009 0.009 0.009 0.009 0.009 NA (EIA) /Thern 0.010 0.010 0.010 0.010 0.010 0.010 NA Weather Normalization Adj. /Gallon DOM 4.446 U46 0L44D DIM NA (WNA) /Therm 0.4;4 4.44 0.44 SL4,iQ 4.44 4.454 CIA Total Non -Fuel Charge/Gallon $0.832 $0.832 $0.472 $0.402 $0.182 $0.472 By Contract /Therm $0.910 $0.910 $0.516 $0.440 $0.199 $0.516 By Cntr. Purchased Gas Adjustment /Gallon 4.554 0.550 0.550 0.550 j).550 0.550 51.54 (PGA) lrhern 4.641 0.601 5)"601 0.601 4.601 0.601 Q"601 Total Energy Charges /Gallon $1.382 $1.382 $1.022 $0.952 $0.732 $1.022 $0.550 /Therm $1.511 $1.511 $1.117 $1.041 $0.800 $1.117 + NF $0.601 + NF Minimum Monthly Bill $7.00 $15.00 $15.00 $20.00 Any Applicable $25.00 Customer Charge + Customer Charge Non -Fuel Energy Chg + Any Applicable for the Contracted Facility Charges # of Gallons/Mo. Change from 9197 /Gallon Rate $ 0.098 $ 0.098 $ 0.048 $ 0.048 $ 0.048 $ 0.048 $ 0.040 /Therm Rate $ 0.109 $ 0.109 $ 0.054 $ 0.054 $ 0.054 $ 0.054 $ 0.044 Note: Utiliy Tax is billed on total LP bill. am') CSW 11 /25/97 CLEARWATER GAS SYSTEM NATURAL GAS RATE BILLING FACTORS FOR OCTOBER 1,1997 - DECEMBER 31,1997 BASED ON APPROVED GAS ADJUSTMENT FACTORS Contract NG Rate CNS NA By Contract By Contract NA NA .NA By Contract 4.285 $0.295 + Non -Fuel Customer Charge + Non -Fuel Therm Rate for Contract 0 of Therms $0.069 $0.226 -�- Firm Natural Gas Raft Schedules Intern. 8MF MMF LMF _SGS_ MGS LGS RAC GAC SAI- --SL SL w/M& NGV NSS_ N4i•BIdC -IS- Applicable Annual Therm Range NA (1 - NA (4 + NA (4 + NA (4 + 0- 18,000- 100,000 NA (1 - NA (0 - NA (150 NA Rellsaht NA NA NA 100,000 or Otter Rate Determinant 3 Units) Units) Units) Units) 17,999 99,999 & up 3 Units) 149 tons) tons & +) g up Monthly Customer Charge $7.00 $15.00 $20.00 $50.00 $15.00 $20.00 $50.00 $7.00 if $15.00 if $15.00 if $15.00 $15.00 $7 Resl./ $25.00 $100.00 not prow• not prey. not prev. $15 GS if billed billed billed not prev. Non -Fuel Energy Charge $0.580 $0.580 $0.580 $0. 580 $0.470 $0.410 $0. 350 $0.200 $0.150 $0.100 $0.200 $0.300 billed $0.100 $0.470 $0.280 Energy Conservation A4- (ECA) 0.030 0.030 0.030 0.030 0.030 0.030 0.030 0.030 0.030 0.030 0.030 0.030 0.030 0.030 NA Environmental Imposition Adj. (EU1) 0.010 0.010 0.010 0.010 0.010 0.010 0.010 0.010 0.010 0.010 0.010 0.010 0.010 0.010 NA Weather Normalization A4. (WNA) 4. 054 UN us UN 4. 454 =w I= 4.4@4 4. 454 4.(L`14 I= I= QMQ I= _NA Total Non-Fuel Energy Charge $0. 670 $0. 670 $0.670 $0.670 $0.560 $0.600 $0.410 $0. 290 $0. 240 $0. 190 $0.290 $0.390 $0.190 $0.560 $0.260 Purchased Gas Adjustment ( PGA) 4,915 4.415 4915 4915 4Ai5 4.915 4. 915 4915 4.415 4-415 4915 4915 4.915 4915 0.295 Total Energy Charge/Therm $1.066 $1.066 $1.085 $1.066 $0.975 $0.915 $0. 855 $0. 705 $0. 656 $0. 605 $0.705 10.605 $0.605 $0.975 $0.575 Minimum Monthly Bill $7.00 $15.00 $20.00 $50.00 $15.00 $20.00 $50.00 $7.00 C $15.00 C $15.00 C $15.00 $15.00 $7 Resl./ 525.00 $100.00 premise premise premise + FAC + FAC $15 GS Q + FAC + Non -Fuel premise Therm Rate for + FAC 250 therms X 0 Days in Mo. Compares to LP/Gallon Rate of $ 0.993 $ 0.993 $ 0.993 $ 0.983 $ 0.892 $ 0.837 $ 0.782 $ 0.645 $ 0.599 $ 0.564 $ 0.645 $ 0.737 $ O.S64 $ 0.892 $ 0.526 with 6.0% French" $ 1.052 $ 1.052 $ 1.052 $ 1.052 $ 0.946 $ 0.887 $ 0.829 $ 0.684 $ 0.635 $ 0.587 $ 0.684 $ 0.781 $ 0.587 $ 0.946 $ 0.558 Change from 9197 Therm Raft Utility Tax Note, $ 0.060 $ 0.060 $ 0.060 $ 0.060 $ 0.010 $ 0.010 $ 0.010 $ 0.010 $ 0.010 $ 0.010 $ 0.010 $ 0.010 $ 0.010 $ 0.010 $ - Fuel Rate per Therm 10/01/73 $0 .069 $0.069 $0.069 $0.069 $0.069 $0. 069 $0.069 $0. 069 $0. 069 $0. 069 $0.069 $0.069 $0.069 $0.069 $0.055 Non - Utility Taxable Fuel/Therm $0. 346 $0. 346 $0. 346 $0 .346 $0.346 $0.346 $0.346 $0.346 $0. 346 $0. 346 $0.346 $0.346 $0.346 $0.346 $0.240 BTU FACTOR a THERMS/100 CUBIC FEET lCCFl 10/97 11!97 im on Q= owl QM Q= an ffm om 48184 Finn Service Rates 1.073 1.074 1.075 Interruptible Service Rates 1.052 1.053 1.054 Contract NG Rate CNS NA By Contract By Contract NA NA .NA By Contract 4.285 $0.295 + Non -Fuel Customer Charge + Non -Fuel Therm Rate for Contract 0 of Therms $0.069 $0.226