GAS ADJUSTMENTS EFFECTIVE JANUARY 1, 1996
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CLEARWATER GAS SYSTEM
Interoffice Correspondence Sheet
FROM:
Betty Deptula, City Manager \
Chuck Warrington, Gas System Managing Director ~
_~loaiiemeoi7reid:.Iea{Tl;fJohn Scott, Asst. Director Finance/UCS;
Tom Madley, Senior Accountant; Karen Miles, Accounting Manager
TO:
COPIES:
SUBJECT:
GAS ADJUSTMENTS EFFECTIVE JANUARY 1, 1996
DATE:
January 1, 1 996
We have experienced a shortfall in Purchased Gas Adjustment (PGA) revenues for
natural gas of $98,298 over the past two (2) months and project that this will reach
$150,000 with the December, 1995, billings. In accordance with the provisions of
our PGA rate as approved by the Commission, I am requesting your approval to
increase our PGA rates for natural gas by 4(: per therm in order to conform our PGA
pricing with our updated fuel cost forecasts and begin to recoup this shortfall.
This is as a result of two (2) somewhat related changes in the fuel market since the
time of our last forecast in September. First, the price of the natural gas commodity
has escalated due to the colder than normal weather, particularly in the northeast
United States. Second, the relationship between natural gas and fuel oil prices,
somewhat as a result of the higher natural gas prices, has shifted in favor of fuel oil.
This has removed a sizable market for our excess contract capacity which has left us
with higher capacity costs than we previously forecasted.
We have computed the past and projected fuel costs for the Clearwater Gas System
customers and propose the following Purchased Gas Adjustment (PGA) rates to
become effective January 1, 1996:
Natural Gas Firm Standard Rate Schedule PGA ............. $0.360 per therm (up 4(:)
Natural Gas Interruptible and Contract
(Non-Standard) Rate Schedule PGA .................... $0.274 per therm (up 4(:)
Propane (LP) Gas Rate Schedule PGA .......................... $0.480 per gallon
= $0.525 per therm equivalent
(Note: No Change in LP PGA)
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Betty Deptula, City Manager
Page 2
January 1, 1996
The following attachments document these recommended rates:
Attachment #1:
Computes the proposed Natural Gas PGA rates based on
Attachment #2.
Attachment #2:
A projection of Natural Gas fuel costs which reflect the best
estimates of Terry Neenan and our MGAF Buyers, Citrus
Marketing.
As noted above, we do not propose to change our PGA for propane CLP) at this time
as the recovery rate is tracking very close to our original estimates. We are also not
proposing any changes at this time to our other adjustment clauses which will remain
as follows:
Energy Conservation Adjustment CECA) ............... $0.023 per therm
= $0.021 per gallon of LP
Environmental Imposition Adjustment CEIA) ......... $0.005 per therm
= $0.005 per Gallon of LP
Weather Normalization Adjustment CWNA) .......... Not Applicable at this time
I have also included Attachments #3 & #4 which reflect the impact of the proposed
PGA rates on each of the rate schedules which would go into effect on January 1,
1 996. It is our plan to use the above proposed adjustments for billings through
March 31, 1996, 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. I will let you know if
any of these get significantly out of balance, plus we plan to incorporate the
adjustment variations as a part of the monthly financial statements beginning with
December in order to make this more visible.
You should note that the impact of this natural gas PGA undercollection has caused
our financial earnings to be understated by $98,298 through November, 1995, and
will likely understate them by about $150,000 through December, 1995. This fix
should more correctly recover our January, 1996, natural gas fuel costs and begin to
recoup a portion of the $150,000.
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Betty Deptula, City Manager
Page 3
January 1, 1996
Betty, your approval of this PGA adjustment is necessary today so that we can
render the bills which are due to go out to our customers on January 3, 1995. In
anticipation of your approval, Tom Madley has already programmed these changes
into the billing effective January 1, 1 996. If you have any questions on this, please
call me.
CSW Ish
Attachments
Approved:
Bett(j:,t${{" Man~ger
CSW:01/01/96
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ATTACHMENT '1
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Page 1 of 2
NATURAL GAS PURCHASED GAS ADJUSTMENT (PGA) CALCULATION
FOR THE BILLING PERIOD OF 01/01/98.03/31/96
J. Calculation of the Differential between the Natural Gas Firm Standard Rate Schedule PGA and the Natural
Gas Interruptible & Contract (Non-Standard) Rate Schedule PGA for the semi-annual period of 10/1/95 - 3/31/96
A. Reservation Charges for the Most Recent 12 Months prior to start of year
9/94
10/94-7/95
8/95
Total
$45,572
$951,792
$68.000
$1,065,364
B. Standard Rate Schedule Therm Usage for the Most Recent 12 Months
9/94-8/95 Total Therm Usage
9/94-8/95 Non-Standard Usage
9/94-8/95 Standard Therm Usage
15,578,179
13.239.3761
12,338,803
C. Differential Applicable for Interruptible & Contract Rate Schedules for 10/1/95 - 3/31/96
A
C
$1.065.364
12,338,803
$0.086
II. Calculation of PGA Correction Factor for the period of 1/01/96 - 3/31/95
Therm Sales Projection for 10/1/95 - 9/30/96 (from Attachment '2 MMBtus X 10)
18,013,750
80% Standard =
~ Non-Standard =
100%
14,411,000 Therms @
3.602.750 Therms @
18,013,750 Therms
Current
PGA Rate
$ 0.320
$ 0.234
Current PGA
Recovery $
$ 4,611,520
$ 843.044
$ 5,454,564
Projected Natural Gas Supply Billing for Year (from Attachment #2)
Less Projected PGA Recovery (from above)
Projected PGA Revenue Shortfall for year
=
$ 5,863,465
$ 15.454.564)
$ 408,902
Divided by Therms Projected to be billed 111/96 - 9130/96
13.350.000
Indicated Required increase in PGA for remainder of year
$
0.031
Recommend Rounding up to
As this must also cover other PGA related budget expenses other than fuel
$
0.04
III. Calculation of the WACOG for 1/1/96 - 3/31/95 for the Non-Standard Rate Schedules
A. Standard Rate Schedule WACOG
$0.360
B. Less Differential
1$0.0861
C. Non-Standard Rate Schedule WACOG
$0.274
.
ATTACHMENT '1
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, Page' 2 of 2 .
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GAS INTERRUPTIBLE & CONTRACT CUSTOMER THERM CONSUMPTION DETAIL
SEPTEMBER 94 - AUGUST 9S
CUSTOMER NAME Sep-94 OCI-94 Nov-94 Occ-94 Jan-95 Fcb-9S ~r-9S Apr-9S May-95 1 un-9S J ul-9 S Allg-9S TOTAL
.
LEVEROCKSSGAFOOD 2,028 2,129 1,845 2,013 2,449 2,076 2,710 2,316 2,705 2.746 1,9&6 2,611 27.6H.
CLW POJNT SWIM CLUB S66 774 1,531 2,936 4,892 6,142 5,856 3,62S 2,000 618 499 m 30.011
BELLEAlR BBACH MOTEL 508 410 464 655 1,039 1,195 959 90S 625 364 317 507 .zJ48
DUNEDlN BCH CAMPOROUND 175 150 484 1,114 2,SS& 2.406 2,324 1,482 864 171 ISS US 12,On
AUNT CIULADA'S 1,297 924 1,417 495 1,147 929 1,007 929 1,155 1,056 930 1,041 12,331
YA-YA'S 758 961 796 933 866 918 &65 866 909 851 813 9,538
BAllEFOOT BlSTRO 602 895 696 659 776 620 579 740 5,566
CRABBY Blll.S P.HAkBOR 1,719 1,813 1,502 1,517 1.646 1.183 1,2S) 1,506 12.207
LONG CENTER. 4,029 2,976 1,881 1.327 686 66J 11.S63
PARADISE DRY CLEANERS 2,357 2,698 2.609 2,084 2,391 12.139
CLIPPER COVE CONDO 2,848 1,43& 1,886 1;947 1,541 SOl 365 432 10.959
TIlAl PAN EXPRESS 249 -UJ 341 1.012
ACME SPONGB & CHAMOlS 5,736 5,365 4,604 6,081 6,639 3,933 4.008 36.396
NEJOHBORL Y SR 'VCS 2,995 2,11l.5 2,460 2,249 2.758 3.167 3,SS6 l,no 23.091
. NATI. CREMATION SOClETY 5,762 6,193 6,7S1 6,520 6,096 6,369 6.02.2 5,9&3 5,811 6.936 62,S 13
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SUBTOTAL CONTRACT 4,574 5,145 12,464 14,202 28,003 n,201 JS,B07 32,799 31,619 28,144 23,499 26,521 ~n
OTHER lNTERRUPTmu: '244,914 230,362 1]1.,360 2J8,C592 27],759 186,068 259,376 277 ,764 240,6$7 241,2J2 221,784 2l7,3al 2.964.399
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TOT AL lNT A: CONTRACT , 149,558 235,501 1.014,824 252,894 301,762 JJ8,169 295,I8J 310,563 272,276 269,]S6 245,28] 2.4],901 J,2l9 .376
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AlTACHMENT #2
CLEARWATER FYI1II8 PURCHASED GAS COST PROJECnONS AS OF 12127/95
-.
_II R -. -
A.IA_
.- . M_
41, ll8 20,
3011,570 55,211 271,5 0
311,7811 55.211 3011.7811
311,7811 55.211 3011,7811
298,351 1,841l 288,35'
318,7811 55,211 3Oll,7811
3011.570 53,_ 298.570
1"',212 417ea 128,2'2
I'" 212 .0_ 12_ 12
I", '2 41, II
"',212 41, II
13t,seo 40,_ 11411eO
,_,II 57, 220,000 see,ll I
NlS -..
NNlS -.- _.v__. --- __v_ ~
- - ....- ....- ....- ,..,- ,..,- ....- ....- .... -
.,GUllI 10,00
131,9111,79 10.00
13791l5,1l2 10,00
'1:lll,400,00 10.00
'128,179,12 1000
1:lll,400,00 10,00
133.7811,911 10,00
,Ill 1000
158 035,01 $0.00
I,"
I_,ll .00
241 lOll 37 1173 1- ,154,411 11732.34 .55 128 387,04 411. .00 9111.41
T - ,... .. beNd on .... ..
,3CWM8Iu ..... .... --- ....
II , 01' 11 In
I 1
VoIurMI" bueCI on hilt
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C5W:Ol/0l/96 CLEARWATER GAS SYSTEM ATTACHMENT 13
NATURAL GAS RATE BILUNG FACTORS
FOR THE PERIOD OF 01/01196.03/31/96
Inte" . Contr.ct
Rrm Natural Gas Rate Schadules tiG..BI1I ~
---BL ~ ~ ..J.GL -HAC.... ~ ~ -A.. SL w/M& ~ ....ML ---IS....- ~
&lliIbl -
Applicable Annual Therm Range NA 11 . O. 18,000- 100,000 NA (1 - NA(O- NA (150 NA NA NA NA 100,000 NA
or Other Rate Determinant 3 Units) 17,999 99,999 lit up 3 Units) 149 tons) tons lit +) lit up
Monthly Customer Charge $5.00 $15.00 $20.00 $50.00 $5.00 if $15.00 if $15.00 if $15.00 $15.00 $5 Resl.' $25.00 $100.00 By
not prev. not prev. not prevo $15 GS if Contract
Non-Fuel EnerGY Cha,oelTherm billed billed billed not prevo
billed
Non.Fuel Energy Charge $0.480 $0.430 $0.380 $0.330 $0.200 $0.150 $0.100 $0.200 $0.300 $0.100 $0.430 $0.260 By
Contract
Energy Conservation Adj. (ECA) 0.023 0.023 0.023 0.023 0.023 0.023 0.023 0.023 0.023 0.023 0.023 NA NA
Environmental Imposition Adj. (EIAI 0.005 0.005 0.005 0.005 0.005 0.005 0.005 0.005 0.005 0.006 0.005 NA NA
Weather Normalization Adj. (WNAI Q.Q02 Q.Q02 Q.Q02 Q.Q02 Q.Q02 Q.Q02 Q.QQQ Q.Q02 Q.QQQ Q..QgQ Q..QgQ --..& --..&
Total Non.Fuel Energy Charge $0.608 $0.458 $0.408 $0.368 $0.228 $0.178 $0.128 $0.228 $0.328 $0.128 $0.468 $0.260 By
Contract
Purchased Gas Adjustment (PGA) Q.JUQ Q.JUQ ~ Q.JUQ ~ ~ ~ ~ ~ ~ Q.JUQ Q.2..Z! Q.2..Z!
Tot.' Energy ChergelTherm $0.868 $0.818 $0.768 $0.718 $0.688 $0.638 $0.488 $0.588 $0.688 $0.488 $0.818 $0.534 $0.274
+ NOIH'uel
Minimum Monthly Bill $5.00 $15.00 $20.00 $50.00 $6.00 @) $15.00@) $15.00@) $15.00 $16.00 $ 5 Resl.! $25.00 $100.00 Custo~ -.
premise premise premise + FAC + FAC $15 GS @ + FAC + Non-Fuel Charge +
premise Therm Rate for Non-Fuel Therm
+ FAC 250 therms X Rate for Contract
UtII1tv Tu Note' I Days in Mo. , of Therms
Fuel Rate per Therm 10/01 n3 $0.069 $0.069 $0.069 $0.069 $0.069 $0.069 $0.069 $0.069 $0.069 $0.069 $0.069 $0.055 $0.055
Non-Utility Taxable Fuel/Therm $0.291 $0.291 $0.291 $0.291 $0.291 $0.291 $0.291 $0.291 $0.291 $0.291 $0.291 $0.219 $0.219
BTU FACTOR - THERMSI1 00 CUBIC FEET rCCFI
10m 111ll.5. 12li5 ~ ~ QJW ~ ~ ~ 2Z.LH ~ ~
Firm Service Rates 1.063 1.067 1.065 1.067
Interruptible Service Rates 1.043 1.046 1.044 1.046
CSW:Ol/0l/96 ATTACHMENT '4
CLEARWATER GAS SYSTEM
BTU Factor: .2..1.JA Gallons/l00 cubic feet (CCF) PROPANE (LP) RATE BILLING FACTORS
BTU Factor: ~ Therms/l00 cubic feet (CCF) FOR THE SEMI-ANNUAL PERIOD OF 10/1/95 - 3/31/96
Contract LP Svc. ~
RlP GlP llP lPV lPS ClP
Appl. Annual Gallon (Therm) Range NA o - 2,499 Gallons 2,500 Gallons & Up NA NA NA
or Other Rate Determinant (1 - 3 Units) (0-2,287 Therms) (2,288 Therms & Up)
Monthly Customer Charge $5.00 $15.00 $20.00 $5.00 Res!. or $25.00 Set By Contract
$15.00 GS if not
Non-Fuel Energy Charge: prevo billed @
premise
Non-Fuel Energy Charge /Gallon $0.650 $0.350 $0.290 $0.100 $0.350 By Contract
ITherm $0.710 $0.383 $0.317 $0.109 $0.383 By Contr.
Energy Conservation Adj. /Gallon 0.021 0.021 0.021 0.021 0.021 NA
(eCA) ITherm 0.023 0.023 0.023 0.023 0.023 NA
Environm'llmposition Adj. /Gallon 0.005 0.005 0.005 0.005 0.005 NA
(EIA) ITherm 0.005 0.005 0.005 0.005 0.005 NA
Weather Normalization Adj./Gallon Q..QQQ Q.QQQ Q.QQQ Q.QQQ Q.QQQ --lllA
(WNA) ITherm Q.QQQ Q.QQQ Q.QQQ .Q.QQQ .Q.QQQ NA
-.
Total Non-Fuel Charge/Gallon $0.676 $0.376 $0.316 $0.126 $0.376 By Contract
ITherm $0.738 $0.411 $0.345 $0.137 $0.411 By Cntr.
Purchased Gas Adjustment/Gallon MB..Q M8Q M8Q M8Q M8Q M8Q
(PGA) ITherm M25. M25. M25. M25. M25. M25.
Total Energy Charges /Gallon $1.156 $0.856 $0.796 $0.606 $0.856 $0.480
ITherm $1.263 $0.936 $0.870 $0.662 , $0.936 + NF $0.525
+ NF
Minimum Monthly Bill $5.00 $15.00 $20.00 Any Applicable $25.00 Customer Charge +
Customer Charge Non-Fuel Energy Chg
+ Any Applicable for the Contracted
Note: Utiliy Tax is billed on total LP bill. Facility Charges # of Gallons/Mo.