GAS ADJUSTMENTS EFFECTIVE JULY 1, 1997
I
I
...
CLEARWATER GAS SYSTEM
/lIlerojJice Co"espondence Sheet
TO:
Betty Deptula, City Manager
)
/IJ"-
FROM:
Chuck Warrington, Gas System Managing Director
COPIES:
Kathy Rice, Deputy 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 JULY 1, 1997
DATE: June 10, 1997
The only change that we are proposing this month is a true-up of the Weather
Normalization Adjustment (WNA) now that the data is all in thru May. The impact in
this is a proposed WNA of 5.00 per therm which is an increase of 1.50 per therm
from the rate we projected in April using data thru March. We would propose to use
this revised rate for the period of July - December, 1997, unless it is determined later
that this adjustment rate is not producing the $369,000 in WNA revenues that is
required. Therefore, we are recommending your approval of the following rates to
become effective for billings rendered on and after July 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 .................... $0.560 per gallon (no change)
= $0.612 per therm equivalent
(no change)
Energy Conservation Adjustment (ECA) ............... $0.015 per therm (no change)
= $0.014 per gallon of LP
(no change)
Environmental Imposition Adjustment (EIA) ......... $0.015 per therm (no change)
= $0.014 per gallon of LP
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Betty Deptula, City Manager
Page 2
June 10, 1997
Weather Normalization Adjustment (WNA) .....,....
$0.050 per therm (up 1.5(:)
= $0.046 per gallon of LP
(up 1.4(:)
Attachment #1 shows our calculation of the final WNA true-up level. Attachment #2
shows the therm history and the basis for the winter usage shortfall levels. Finally,
Attachments #3 and #4 show the impact of these adjustment clause changes on our
overall Natural Gas and LP rates, respectively.
It is our plan to use the above proposed adjustments for billings through September
30, 1997, (andWNA through December 31, 1997) 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. We will
also continue to provide you with a summary of our adjustment status as a part of
our monthly financial statements.
Betty, 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 July 1 st billings. If you have any questions on this,
please call me.
\
CSW /cw
Attachments
Approved:
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Attachment # 1
FINAL CALCULATION OF WEA THER NORMALIZATION ADJUSTMENT
Shortfall in Heating Degree Days
1 0 Year Average HDDs
=
.la3.
501
=
36.5%
Projected Shortfall in Natural Gas Therms = 680,000 @ 53Cltherm = $360,500
Projected Shortfall in LP Gas Gallons = 12,000 @ 70C/gallon = 8.500
Total Projected Shortfall in NFE Billings for FY 96/97 = $369,000
Usage for Months of
NG Therms LP Gallons Total NG Equivalent
May - September
October - December
Total for 8 Months
6,655,000
4.480.000
11,135,000
150,000
125.000
275,000
6,792,250
4.594.375
11,386,625
Shortfall in FY 96/97 NFE Billings = $369.000 = 3.24C = 4.98C = Round to 5.0C
Projected Equivalent 8 Mo.Therms 11,386,625 65% *
* = Projected percentage of applicable therms billed under a non-contract rate.
This is projected to provide a WNA recovery of:
$200,000 in FY 96/97
169.000 in FY 97/98
$369,000 in Total
See Attachment #2 for calculation of the therm shortfall. LP is projected
proportionately.
CSW:06/10/97
AT r {1CH/TIF..Ji ll:- l-
CSW:06109197 FY 96-97 Budget
FY 96/97 ORIGINAL BUDGET THERM PROJECTIONS IMILLIONSI %01
ANNUAL \
Mmmf IlAH WEAIHE8 ~ ImlIlIlM INTERRUPT PROJECTED MIm.1QI[ HIm..1ilIl DWlMl
OCTOBER 0.97 0.01 0.01 -0.13 0.23 1.09 2 3 6.13%
NOVEMBER 0.98 0.08 0.02 -0.10 0.24 1.21 21 38 6.85%
OECEMBER 0.99 0.31 0.02 0.01 0.26 1.68 83 127 8.91%
JANUARY 1.00 0.60 0.03 0.20 0.27 1.99 134 140 11.26%
FE8RUARY 1.01 0.47 0.03 0.20 0.30 2.01 127 114 11.38%
MARCH 1.02 0.33 0.04 0.16 0.30 1.83 88 61 10.36%
APRIL 1.03 0.15 0.04 0.08 0.29 1.59 39 17 8.96%
MAY 1.04 0.03 0.05 0.00 0.26 1.38 9 1 7.79%
JUNE 1.05 0.00 0.06 -0.06 0.26 1.30 1 0 7.36%
JULY 1.06 0.00 0.06 -0.12 0.24 1.24 0 0 6.98%
AUGUST 1.07 0.00 0.06 -0.13 0.23 1.23 0 0 6.96%
SEPTEM8ER 1..llI QJlll llJlZ :Q..U Q.U l.n II II 1JlU.
TOTAL 12.30 1.87 0.45 -0.01 3.09 17.71 501 501 100.00%
-
ACTUAL FY 96/97 THERM SALES IMILLlONSI
ACT.vs.PROJ.
Mmmf IlAH WEAIHE8 ~ ImlIlIlM INTERRUPT PROJECTED MIm J:IIm ACT THERMS VARIANCE
OCTOBER 0.97 0.01 0.01 -0.13 0.25 1.11 2 3 1.11 0.00
NOVEMBER 0.98 0.07 0.02 -0.10 0.28 1.25 20 36 1.26 0.01
DECEMBER 0.99 0.26 0.02 0.01 0.27 1.&& 69 101 1.49 -0.06
JANUARY 1.00 0.43 0.03 0.1& 0.29 1.90 117 132 1.69 -0.01
FEBRUARY 1.01 0.32 0.02 0.16 0.34 1.84 88 39 1.74 -0.10
MARCH 1.02 0.07 0.03 0.16 0.30 1.57 20 0 1.59 0.02
APRIL 1.03 0.01 0.04 0.08 0.31 1.47 4 7 1.36 -0.11
MAY 1.04 0.01 0.05 0.00 0.29 1.39 4 0 1.&0 0.11
JUNE
JULY
AUGUST
SEPTEMBER
TOTAL 8.04 1.18 0.22 0.31 2.33 12.08 318 318 11.94 -0.14
. BUD.YTO 05/97 8.JM .1..U l2.22 ll.ll z..H 1l.U .5lU .5lU 1l.U QJlll
YTD BUD.VAR. 0.00 -0.88 0.00 -0.10 0.19 -0.59 -183 -183 -0.73 -0.14
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FY 96/97 2Q REVISED BUDGET LP GALLON PROJECTIONS 11000'01 ACTUAL FY 96/97 LP GALLON SALES /THOUSANDS I
%01
ANNUAL VARIANCE YARlANCE YARlANCE
Mmmf fINEI.LA& ~ IllIAL ~ fINEI.LA& ~ IllIAL fINEI.LA& ~ IllIAL
OCTOBER 9.0 B.O 17.0 4.88% 9.2 8.3 17.5 0.2 0.3 0.5
NOVEM8ER 11.0 10.0 21.0 6.01% 11.6 9.7 21.2 0.6 -0.3 0.2
OECEMBER 16.0 12.0 27.0 7.73% 15.1 12.3 27.4 0.1 0.3 0.4
JANUARY 19.0 13.0 32.0 9.16% 19.5 20.9 40.4 0.5 7.9 8.4
FEBRUARY 19.3 14.2 33.5 9.59% 18.1 6.0 24.1 -1.2 -8.2 -9.4
MARCH 20.0 11.0 31.0 8.87% 19.6 11.8 31.4 -0.4 0.8 0.4
APRIL 19.0 12.0 31.0 8.87% 16.1 8.9 25.0 -2.9 -3.1 -6.0
MAY 18.0 13.0 31.0 8.87% 16.2 14.8 29.8 -2.8 1.6 -1.2
JUNE 17.0 14.0 31.0 8.87%
JULY 16.0 16.0 31.0 8.87%
AUGUST 15.0 16.0 31.0 8.87%
SEPTEMBER H.ll 1Lll ll.ll ~
TOTAL 194.3 155.2 349.5 100.00% 124.3 92.5 21S.8 -6.0 -0.7 -6.7
Page 1
CSW:06110197
Appllcabla Annual Tharm Ranga
or Othar Rata Osta,mlnant
Monthly Cuatomar Cha'ga
Non-Fu" Enarav Ch.ra.lTherm
Non-Fuel Enargy Cha'ge
Energy Consarvatlon Adj. IECAI
Environmental imposition Adj. IEIAI
Weather Normalization Adj. IWNAI
Tot81 Non-Fual Energy Charge
Purchased Gas AdjustmentlPGAI
Total Energy ChergelTherm
Minimum Monthly Bill
eompar. to LP/Gellon Rate of
with 8.0% F,anchlse
Changa from 9/98 Therm Rata
UtIlItY Tax Nota'
Fuel Rate per Therm 10101 n3
Non-Utility Taxabl" FuellTherm
CLEARWATER GAS SYSTEM
NATURAL GAS RATE BILLING FACTORS
FOR JULY 1, 1997. SEPTEMBER 30, 1897 BASED ON APPROYED OAS AOJUSTMENT FACTORS
--BL ....iME..... ....MMf.... ...LMf...
NA (1 - NA (4 + NA 14 + NA 14 +
3 Unltsl Units) Unltsl Unltsl
$0.630
.0.810
.1.02S
.8.00
$15.00
tzo.OO
.0.530
0.015
0.015
ll.Q5Q
.0.810
M1i
.1.025
.20.00
.60.00
$0.630
0.015
0.015
Rrm Natural Ou Rata Schadulu
..JilL -MGI.... -1OL ~ ~
$15.00
0- lB,OOO- 100,000 NA II . NA 10 - NA 1150
17.999 99.999 & up 3 Unltsl 149 tonsl tons & + I
...lAC....
$0.470
$0.650
$0.986
$15.00
tzo.OO
$0.410
0.016
0.016
.50.00
$0.350
.0.430
.0.845
$60.00
$8.00 If
not p,ev.
billed
$0.200
0.016
0.016
0.015
$16.00 If
not prav.
billed
$0.150
0.016
0.016
.16.00 If
not p,ev.
billed
$0.100
0.016
0.016
ll.Q5Q
.0.1BO
M1i
$8.00@ $15.00@ $16.00@
p,emlsa premise p,emise
.0.695
.16.00
$0.200
.0.280
.0.695
$15.00
+ FAC
~ SLwIM. ~
8IUlIb1
NA NA NA
$15.00 $8 Resl.l
$16 GS If
not prev.
bUled
$0.300 $0.100
0.015
0.016 0.016
Interr .
u...BIlI
.JUL ______
NA 100.000
&up
U6.00
"00.00
$0.630
0.Q16
0.016
ll.Q5Q
.0.810
M1i
., .026
$6.00
$15.00
0.015
0.016
0.016
0.016
ll.Q5Q
Q.Q5g
0.016
ll.Q5Q
.0.230
M1i
.0.846
0.015
0.016 0.016
$0.470
$0.280
ll.Q5Q
ll.Q5Q
ll.Q5Q
ll.Q5Q
.0.280
M1i
M1i
ll.Q5Q
ll.Q5Q ll.Q5Q
0.016
NA
.0.810
M1i
M1i
$0.490
M1i
M1i
$0.896
.0.380 .0.180
M1i
M1i M1i
0.016
NA
.1.026
$50.00
.0.906
$20.00
.0.795 .0.695
$15.00 $8 ReaI.1
+FAC $15GS@
premlae
+ FAC
ll.Q5Q
----I!IA
.0.650
.0.280
M1i
Q.2U
.0.986 .0.676
tz5.00 $100.00
+ FAC + Non-Fuel
Therm Rate for
260 therms X
# Days In Mo.
· 0.938 . 0.938 . 0.938 $ 0.938 . 0.883 . 0.828 . 0.773 . 0.838 . 0.690 $ 0.544 . 0.838 . 0.727 $ 0.544 . 0.883 $ 0.&28
$ 0.994 $ 0.994 $ 0.994 $ 0.994 $ 0.938 $ 0.878 $ 0.820 $ 0.874 $ 0.828 $ 0.677 $ 0.874 $ 0.771 $ 0.677 $ 0.938 . 0.658
. 0.075 $ 0.125 . 0.175 . 0.226 . 0.086 . 0.055 . 0.045
.0.069 $0.069 $0.069 $0.069
8TU FACTOR - THERMS/l00 CUBIC FEET ICCFI
$0.346 $0.346 $0.346 $0.346
Firm Service Rates
Interruptible Service Rates
1.068
1.047
.uuu
1.067
1.046
1.1.lllll
1.063
1.042
1ZLU
iUlll
$0.069
$0.346
gz[U
1.077
1.068
$0.069
$0.346
ll3Ln
1.074
1.053
$0.069
$0.346
1.072
1.051
0.025 . 0.026 . 0.025 . 0.025 . 0.025 . 0.025 . 0.065 . 0.042
$0.069
$0.346
lMLlZ
Q5LlI.Z
$0.069
$0.346
QM1
1.072
1.051
$0.069
$0.346
fJ1Jn.
1.072
1.051
$0.069
$0.346
$0.069
$0.069
$0.069
$0.055
,
ATTACHIIBIIT n
~
IMl..B8
~
NA
-
1.077
1.056
1.067
1.046
$0.346
$0.346
$0.346
$0.240
By
Conlnet
By
Contract
NA
NA
----I!IA
By
Conlnet
Q.2U
.CU95
+ Non-f'uaI
Cust_
Charge +
Non-Nel Therm
Rata for Contract
# of Thenns -.,.
. 0.022
$0.069
$0.228
~
ll1llIZ
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CSW:06/10/97 ATTACHMENT '4
CLEARWATER GAS SYSTEM
BTU Factor: .z.ll4 Gallons/100 cubic feet (CCFI PROPANE (LPJ RATE BILLING FACTORS
BTU Factor: .2.Ma Therms/100 cubic feet ICCF) FOR JULY 1, 1997 - SEPTEMBER 30,1997 BASED ON APPROVED GAS ADJUSTMENT FACTORS
Therm Factor: ~ Therms/Gallon
Contrec:t lP lve. -
RlP MlP GLP LLP LPV LPS ClP
Appl. Annual GallQn (Therm) Range NA NA o - 2.499 Gallons 2,600 Gallons & Up NA NA NA
or Other Rate Determinant (1 . 3 Units) (4 + Units) 10-2,287 Thermsl 12,288 Therms & Up)
Monthly Customer Charge $6.00 $15.00 $15.00 $20.00 $6.00 Resl. or $25.00 Set By Contract
$16.00 GS if not
Non-Fuel Eneroy Charve: prey. billed @
premise
Non-Fuel Energy Charge IGallon $0.700 $0.700 $0.390 $0.320 $0.100 $0.390 By Contract
/Therm $0.765 $0.765 $0.426 $0.350 $0.109 $0.426 By Contr.
Energy Conservation Adj. IGallon 0.014 0.014 0.014 0.014 0.014 0.014 NA
(ECA) ITherm 0.015 0.015 0.Q15 0.015 0.Q15 0.015 NA
Environm'l Imposition Adj. IGallon 0.014 0.Q14 0.014 0.Q14 0.014 0.Q14 NA
(EIAI ITherm 0.015 0.015 0.015 0.Q15 0.015 0.015 NA
Weather Normalization Adj./Gallon ~ ~ ~ ~ ~ ~ -.NA
lWNA) ITherm QMQ QMQ QMQ Q.Q5Q Q.Q5Q Q.Q5Q -.NA
Total Non-Fuel Charge/Gallon $0.774 $0.774 $0.464 $0.394 $0.174 $0.464 ByContnIct
ITherm $0.845 $0.845 $0.506 $0.430 $0.189 $0.506 By Cntr.
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Purchased Gas Adjustment/Gallon QMQ QMQ ~ QMQ QMQ QMQ QMQ
lPGA) /Therm 2.M2 2.M2 2.M2 2.M2 2.M2 Q.2U Q.2U
Total Energy Charges IGaDon $1.334 $1.334 $1.024 $0.954 $0.734 $1.024 $0.560
fTharm $1.457 $1.457 $1.118 $1.042 $0.801 $1.118 +NF to.612
+NF
Minimum Monthly Bill $6.00 $15.00 $15.00 $20.00 Any Applicable $25.00 Customer Chwge +
Customer Charge Non-Fuel Energy Chg.
+ Any Applicable for the Contracted
Facility Charges , of Gellons/Mo.
Change from 9/96 IGallon Rate $ 0.071 $ 0.371 $ 0.061 $ 0.051 $ 0.021 $ 0.061 $ 0.020
ITherm Rate $ 0.077 $ 0.404 $ 0.065 $ 0.055 $ 0.022 $ 0.065 $ 0.022
Note: Utiliy Tax is billed on total LP bill.