GAS ADJUSTMENTS EFFECTIVE DECEMBER 1, 1996
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CLEARWATER GAS SYSTEM
Interoffice Correspondence Sheet
TO:
Betty Deptula, City Manager
FROM:
"-
Chuck Warrington, Gas System Managing Director G'~
COPIES:
Kathy Rice, Deputy City Manager; Margie Simmons, Finance Director;
CGS Management Team; John Scott, Asst. Director Finance/UCS;
Tom Madley, Senior Accountant/UCS; Karen Miles, Accounting Manager
SUBJECT:
GAS ADJUSTMENTS EFFECTIVE DECEMBER 1, 1996
DATE:
November 25, 1996
In order to continue to be proactive this year and avoid the large increases in our
Purchased Gas Adjustment (PGA) that we had to make last winter, we need to react
to one (1) PGA issues for the December billing cycle.
As I related in last month's memo, propane (LP) fuel supply prices have risen more
rapidly than expected due to both a cooler than normal Fall thusfar plus a tightening
of LP supply nationally resulting from a problem with a major Mexican Natural and LP
gas supply facility. Attachment #1 shows that our current LP Weighted Average
Cost of Gas (WACOG) is $0.62855. We need to adjust for this so as to not fall
behind on our LP PGA collections; therefore, we are proposing to raise the Propane
(LP) PGA adjustment rate by another 8(: per gallon effective with billings beginning
on December 1 st. Attachment #2 shows the effect of this change in LP PGA rates
on overall LP pricing. Attachment #3 shows Natural Gas pricing for reference only as
it is not proposed to change this month.
This follows a 2 (: per gallon LP PGA increase that we implemented in November
which followed a 1 (: decrease which we effected in October from the summer LP
PGA levels. Therefore, in net, we have increased LP PGA rates by 9 (: thusfar this
fiscal year. We understand that the other LP distributors are similarly raising their
rates to compensate for the increase in LP supply costs. This is actually very helpful
from a competitive standpoint as natural gas supply pricing has remained stable.
"
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Betty Deptula, City Manager
Page 2
November 25, 1996
We do not propose to make any changes in our Natural Gas PGA, our Energy
Conservation Adjustment (ECA), nor our Environmental Imposition Adjustment (EIA)
clause rates at this time as our costs are running reasonably in line with our earlier
projections. Therefore, we recommend your approval of the following rates to
become effective for billings rendered on and after December 1, 1996:
Natural Gas Firm Standard Rate Schedule PGA ....... $0.390 per therm (no change)
Natural Gas Interruptible and Contract
(Non-Standard) Rate Schedule PGA ............. $0.277 per therm (no change)
Propane (LP) Gas Rate Schedule PGA .................... $0.630 per gallon (up 8(:)
= $0.689 per therm equivalent
(up 8.8(:)
Energy Conservation Adjustment (ECA) ............... $0.040 per therm (no change)
= $0.037 per gallon of LP
Environmental Imposition Adjustment (EIA) ......... $0.010 per therm (no change)
= $0.009 per Gallon of LP
Weather Normalization Adjustment (WNA) .......... Not Applicable at this time
It is our plan to use the above proposed adjustments for billings through March 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 PGA 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 1 st billings. If you have any questions on this,
please call me.
CSW /cw
Attachments
~/~
Approved: a.fr:;..r
Be e ula, City Manager
A rrACHtn:
i+}
---- PROPANE INYENTORY AND WEIGHTED COST OF GAS (WACOGI
PREPARED BY TERRY NEENAN
DATE 11/25/96
LP aupplled by Ferrellgea
Date Contrect Ends 9/30/96
INYENTORY TANK COST OF GALLONS DELIVERED DELIVEREO TOTAL NEW
DATE WrrHDRAW INVENT. WACOG INVENT DELIVERED PRICE INVOICE GALLONS WACOG
9/30/96 20.897 43,857 $ 0.54895 $ 24.075.30 $ $ 43.857 $ 0.54895
10/29/96 53,125 $ 0.67104 $ 30,336.78 9,268 $ 0.67660 $ 6,261.46 63.126 $0.67104
10/30/9S (991) 52,134 8 0.67104 $ 29,170.60 $ $ 53,125 80.57104
11/1/98 29,218 22,918 $ 0.57104 $ 13.087.09 $ $ 53,125 $0.57104
11/1/98 32.224 . 0.60124 . 19,374.23 9,306 . 0.67660 . 8,287.13 62.431 $0.60124
1111/98 41.582 . 0.61797 $ 25,698.49 9,358 . 0.87560 . 6,322.26 71,789 in.iI1797
1 1/2198 50.928 $ 0.62855 . 32,009.30 9.344 . 0.87560 $ 6,312.81 81,133 ? $0.62855 ::;
.
Total Gallon I Max Inv. Oal. Total GallolJa -
Withdrawn 49,122 53,125 Oellvered 37.27S $
POUlJds per Gal 4.23
Max PoulJds 95 224,718.75
S:\INCOCAT()fII\LPWACOO.XLS
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CSW:11/25/96
BTU Factor:
BTU Factor:
Therm Factor:
UH
.2MJ
2Jtl.5.
Gallonsl1 00 cubic feet (CCF)
Therms/100 cubic feet (CCF)
Therms/Gallon
CLEARWATER GAS SYSTEM
PROPANE (LP) RATE BILLING FACTORS
FOR DECEMBER, 1996. MARCH 31,1997 BASED ON NEW GAS RATES & ADJUSTMENT FACTORS
ATTACHMENT '2
COntnICI LP Svc. "'-AI
RLP MLP GLP LLP LPV LPS CLP
Appl. Annual Gallon (Therm) Range NA NA o - 2.499 Gallons 2,500 Gallons & Up NA NA NA
or Other Rate Determinant (1 - 3 Units) 14 + Units) 10-2,287 Therms) (2,288 Therms & Up)
Monthly Customer Charge $6.00 $15.00 $15.00 $20.00 $6.00 Resl. or $25.00 Set By Contract
$15.00 GS if not
Non-Fuel Eneray CharCj/e: 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 Conseryation Adj. IGallon 0.037 0.037 0.037 0.037 0.037 0.037 NA
(ECAI ITherm 0.040 0.040 0.040 0.040 0.040 0.040 NA
Environm'llmposition Adj. IGallon 0.009 0.009 0.009 0.009 0.009 0.009 NA
(EIAI ITherm 0.010 0.010 0.Q10 0.010 0.010 0.010 NA
Weather Normalization Adj./Gallon Q.QQQ Q.QQQ Q.QQQ Q.QQQ Q...QQQ Q.QQQ ---.&
(WNAI ITherm Q...QQQ Q.QQQ Q.QQQ Q.QQQ Q.QQQ Q.QQQ ---.&
Total Non-Fuel Charge/Gellon $0.746 $0.746 $0.436 $0.366 $0.146 $0.436 By ContntCt
lTherm $0.815 $0.815 $0.476 $0.400 $0.159 $0.476 By Cntr.
-
Purchased Gas Adjustment/Gallon Q&3.Q Q&3.Q Q&3.Q Q&3.Q Q&3.Q Q&3.Q Q&3.Q
(PGAI /Therm M.8Jl 2...6..8.9. 2...6..8.9. 2...6..8.9. 2...6..8.9. 2...6..8.9. 2...6..8.9.
Total Energy Charges IGallon $1.376 $1.376 $1.066 $0.996 $0.776 $1.066 $0.630
ITherm $1.504 $1.504 $1.165 $1.089 $0.848 $1.165 + NF $0.689
+ NF
Minimum Monthly Bill $6.00 $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 9/96 /Gallon Rate $ 0.113 $ 0.413 $ 0.103 $ 0.093 $ 0.063 $ 0.103 $ 0.090
ITherm Rate $ 0.124 $ 0.451 $ 0.112 $ 0.102 $ 0.069 $ 0.112 , $ 0.099
Note: Utiliy Tax is billed on total LP bill.
CSW:11/25/96
Appllceble A,,"ue' Therm RelJge
or Other Rete Determlnent
Monthly Customer Charge
Non-Fuel Enerav Ch.raelrherm
NOIJ-Fue' ElJergy Cherge
Energy Conservetion Adj. (ECAI
EnvlrolJmelJlal Imposition Adj. (EIA)
Weathe, Normalization Adj. (WNA)
Totel Non-Fuel Energy Cherge
Purchased Gas Adjustment IPGA)
T otel En.rgy Cherg.fTh.rm
Minimum Monthly Bill
Compar.. to LP/Gellon Rat. of
with 6.0% FralJchise
Change from 9/96 Therm Rete
Utility Tex Note:
Fuel Rate per Therm 10101/73
Non.Utility Taxable FuelfTherm
CLEARWATER GAS SYSTEM
NATURAL GAS RATE BILLING FACTORS
FOR NOVEMBER 1. 1996. MARCH 31.1997 BASED ON NEW GAS RATES&. ADJUSTMENT FACTORS
-BL ....i.ML ....MMf..... ...LML
t6.00
NA (1 - NA (4 + NA (4 + NA (4 +
3 Units) UlJlts) UlJlta' Units'
t60.00
to.630
0.040
t16.00
to.63O
0.040
UO.OO
to.630
to.630
0.040
0.040
0.010 0.010 0.010 0.010
Q.QllQ Q.QllQ Q.QllQ QJlQll
$0.580 to.680 $0.580 $0.580
$0.970
~ ~ ~ ~
$0.970
t6.00
$0.970
to.970
t60.00
Firm Natural Gu Rate Sehedul.s
....IAL ....MliL -LliL -'IAk.. ~
t16.00
o - 18.000-
17.999 99.999
t20.00
to.470
0.040
0.010
QJlQll
$0.520
~
to.910
$16.00
$0.410
0.040
0.010
QJlQll
$0.460
lL3aQ
$0.8110
t20.00
100.000
&. up
t60.00
$0.350
$0.400
$0.790
t60.00
NA (1-
3 UlJlts)
$6.00 If
not prev.
billed
to.200
0.040
0.010
QJlQll
QJlQll
NA 10 - NA (160
149 tons) tons &. +)
~
$16.00 If
not p,ev.
billed
to.150
0.040
0.040
tI5.00
t20.00
$0.250
lL3aQ
lL3aQ
0.010
0.010
to.640
Q.JlQQ
$0.200
~
$0.590
tI5.00 If
not prev.
billed
to.l00
0.040
0.010
QJlQll
$0.150
~
t6.00@ tI5.00 @ tI6.00@
premise premise premise
to. 1540
0.888 t 0.888 $ 0.888 $ 0.888 t 0.833 $ 0.n8 $ 0.723 $ 0.586 $ 0.540
0.941 t 0.941 t 0.941 . 0.941 t 0.883 . 0.824 . 0.766 . 0.621 t 0.672
$ 0.020 $ 0.070 $ 0.120 $ 0.170 $ 0.010 .
$0.069 to.069 to.069 to.069
to.321 to.321 to.321 to.321
BTU FACTOR - THERMSll00 CU81C FEET ICCFI
Firm Servic~ Rates
Interruptible Service Rates
.1llLH
1.068
1.047
11.lti
1.067
1.046
1Zm
lULU
to.069
to.321
gznu
$ 10.0101 $ 10.0301 $ 10.030)
to.069
to.321
23LU
to.069
to.321
to.069
to.321
~
$0.069
to.321
~
~
0.494
0.524
t16.00
to.200
to.250
to.640
tI5.00
+ FAC
.....IL SL w/M&.
8Il1ab1
NA NA
....tmL
t15.00 t6 Resl.!
.16 GS if
not prev.
billed
$0.300 to.l00
0.040
0.040 0.040
0.010
QJlQll
$0.150
lL3aQ
$0.540
tI5.00 .6 Resl.l
+FAC t15GS@
premise
+ FAC
NA
t25.00
+ FAC
Int....
fililIIa
JDL~
NA 100.000
a. up
U6.00
tl00.00
0.010
0.010
10.0301 $ (0.030) $ (0.030) $ 10.030) $ 0.010
$0.069
to.321
rum
QJlQll
QJlQll
to.470
to.280
$0.350
~
~
$0.069
$0.321
0.040
NA
ATTACHMENT '3
Contrec:t
ftll..Bm
.....QIL..
-
NA
By
Contract
By
Contract
NA
NA
--&
By
Contract
Q.ill
$0.2n
+ Non-Fuel
Customer
Charge +
Non-Fuel Therm
Rate for Contract
, of Therm. ~
$ 0.004
to.069
to.208
1.083
1.042
$0.740
0.010
NA
QJlQll
-l!lA
$0.520
$0.280
lL3aQ
Q.2Z1
$0.910
$0.557
tl00.00
+ Non-Fuel
Therm Rate for
250 therm. X
, Oay. in Mo.
0.586 . 0.677 $ 0.494 $ 0.833 t 0.510
0.621 $ 0.718 t 0.524 $ 0.883 t 0.540
$0.069
to.321
$0.069
$0.321
~
omz
0.024
$0.069
to.055
$0.321
$0.222