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GAS ADJUSTMENTS EFFECTIVE APRIL 2009CLEARWATER GAS SYSTEM Interoffice Correspondence Sheet TO: William B. Horne II, City Manager FROM: Chuck Warrington, Managing Director COPIES: Rod Irwin, Assistant City Manager; Cyndie Goudeau, City Clerk; CGS & CCS Management Teams; Janet Dorrough, Sr. Accountant/CGS; Tom Madley, Sr. Accountant/CCS; Laura Damico, Sr. Accountant/CCS SUBJECT: GAS ADJUSTMENTS EFFECTIVE APRIL 2009 DATE: March 26, 2009 The Natural Gas and Propane supply markets have continued to moderate. Therefore, we are recommending that we decrease our Natural Gas Purchased Gas Adjustments (PGA) by another 14¢/therm and decrease our LP PGA by 4¢/gallon in April. This is the 5"' reduction in our PGA rates this year. We are also recommending a 3¢/therm or gallon decrease in our Energy Conservation Adjustment (ECA), as these costs have continued to fall with the decreased construction activities. We are not recommending any changes in our other two (2) clauses at this time. Both these are at 0¢/therm or gallon. These are our Regulatory Imposition Adjustment (RIA) and our Usage & Inflation Adjustment (UTA). The net effect of these recommended changes is a 17¢1therm decrease (40.8%) in our typical Residential Natural Gas customer's rate and a 7¢1gallon (-3.1%) decrease in our typical Residential LP customer's rate. Therefore, we are recommending your approval of the following rates to become effective for billings rendered on and after April 1, 2009: Natural Gas Firm Standard Rate Schedule PGA ....... $0.89 per therm (down 14¢/therm) Natural Gas Interruptible and Contract (Non-Standard) Rate Schedule PGA ............ $0.81 per therm (down 14¢/therm) Propane (LP) Gas Rate Schedule PGA .................... Energy Conservation Adjustment (ECA) ............... Regulatory Imposition Adjustment (EIA) ................. $1.16 per gallon (down 4¢/gallon) $0.04 per therm or gallon (down 3¢) $0.00 per therm or gallon (no change) Usage & Inflation Adjustment (WNA) .................... $0.00 per therm or gallon (no change) William B. Horne II, City Manager March 26, 2009 Page 2 Attachment #1 shows the status of our Adjustment Recovery Clause balances with actuals thru February and projections thru Period 13. These show that we are projecting being close to in balance by the end of the fiscal year, which is important to our overall financials. Attachments #2 and #3 show our annual projections for Natural Gas and LP supply costs, respectively. Attachments #4 and #5 show the impact of these adjustment clause changes on our overall Natural and LP Gas rates, respectively. Attachment #6 shows our rate history over the past 4+ years and shows our relationship to current electric prices. I should point out that the overall effect is that our typical Residential customer rates are now approximately 63% lower than electric for Natural Gas and LP is now about 38% lower than electric. Progress Energy Florida obtained FPSC approval for a 25% increase in rates effective January 1st due principally to a huge increase in their Fuel Adjustment charges & these competitive positions vs. electric are based on that. They recently applied to drop about 'h of this increase in April. Additionally, TECO Peoples Gas has filed for a $25+ million increase in their natural gas rates. 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. Bill, I would appreciate your approval of these revised adjustment rates so we can get this information to CCS in order to make the appropriate adjustments in the billing formulas in time for the April 1 st billings. If you have any questions on this, please call me. CSW/csw Attachments Approved: e?-@ 10% illiam B. Horne II, City Manager U:Wty Documents\MSOFFICE\WINWORD\GASRATES\Gas Adjustments for April 2009.doc ;; 0 z ? m E m C °1 v m ?a a LU I -- M 'N NVN If W W J U r, C ? O O CD co co co co u7 n r G CJ1 C? d m ° CJ .. T O. i 0 4 0 o . 0 0) N o C7 C i0 co O C? O' M a N 0' N O: ,ti: co r 0 r 0 0 to m r L^ r E ti N ^ N N N.; b r. to r t n O CR a OR a OR 0 OR 1 OJ Op a N N r co z m m It .- r Q; Q O O C O U -1 W Ur w Q U W '? -- -- ^ . .... ..._. .^.. -- ? o rn 7 i in n1 9 M 47 to w M1 rn 4 w ? co to o N am tA o a M -i °m r In o9 N t71 M Ch n th V 7 C'q m 7 m m t o• n 7 n co r O In ? w RV o a w o OD C CO w 00 O 0 M 1 0 M 0 CO t- Q ° m 7 m m m N 0 V O) M1 M ? CO fM O1 g n M 47 N ? 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(a F, H M d; h M to FA a> Z m U a d d O a O v O O m m w w O o v M1 I e- f" l H O co N °? r O 4 m r O e i O w O d O V N I I N O m O M Y Nl in r! fq d, K b4 Ca C7 C7 o W a ? c o IWi U ¢ C7 U. C? o LG rn aC c m _ LLI _ G c ® 4 m Q m m U` d y m O p m P m O (? d U Z L C G a of 'O € LL C Co O N dt O S C U N t ?^ .. cm a N C?'D O C C 10 y E /tl 9 00 o U V f V ?j c 4a v m z n k E O as m LL LL n d U m LL U o z u i m e W o z ? m iu t m CD co U ~ m 1; H G O C 0 O C N y O O O j O L U Q Q Z z w m F - F z n LL z o v csw:03ri2r2009 ._._..._..- - ----.__ .. _-... ------_._........_......_? _.-...?..-.. _..-- - __._._.._.-...- -........ _...-.. Attachment -Page #6 ........1........ - - __-...._. ... 1 ot 2 Residential Rate His! By Components Clearwater Gas System r'. enm_ Contract .._..._......._ _ Total Rate _..._............-._?-Ad'us e ts "- -- ---- Month NG ertn LP/ allon C = p, EIA/RIA# WNAIUIA# PGA -PG - - _ -_........ _ _PGA/ allon - ?- - $ 1.190 $ 2.260 Oct-08 $ 1.990 $ 3.300 - - - $ 0.14D $ $ $ 1.270 -_ 1.190 $ 2.2fi0 $ - $ 1.270 $, Nov-08 $ 1.990 $ 3.300 $ 0.140 $ Dec-08 $- 1.940 $ 2.770 - - $ 0.140 $.._._.. - $ -- $ 1.220 $ ._,-1 ^140, $- . 1.730 Jan-09 $ 1150 _$__._. 2.290 # - ------ $ 0.090 $ $ 1.180 $ 1.100 $ 1.200 Feb-09 $ 1.750 $ 2.290 $ 0.090 $ $1.180 $ 1.100 $ 00 Mar-09 $_ 1.580 $ 2 2.2 .270 $ 0.070 _ $ $ $ $ 1.030 $ 0.950 $ 00 Apr-09 $ 1.410 $ 2.200 _ $ 0.040 _ =.._ $ _ $ 0.890 $ $ 0 _ 1_160 $ May-09 . ._ ? _ Jun-09 Jul-09 Sep-09 -- FY 08/09 Avg. 1.773 $ 2.631 0.101 $ - - 1.149 $ 1.069 1.573 2008 Avg. 1.965 3.186 0.136 $ - 0.013 1.237 $ 1.157 2.138 ....._.. Incr. Above $ 0.400 (,,. •920 $.-..._.. 0,._. _ _ _-........-.- _ -- $ 0.110 S -... .-.. .. _ 0.030 $ $ 0.160 .,.._ $ X 60) $ ?0 Last Year . __ _ ._ ..__......-_. Sane Month -22% -29% -73% NA -16% -43% Incr. Based $ 10.00 $- 25.14 on 25 Therms -14% -25% J- alena Eurv_.__. _... _ _.u.._ . - - . ._ ? -` Cents/KWH 4.8 8.2 ......_ - - for Gas ' Vs. FPC 12ate - 13.1 13.1 Note: This is P ress Energy's resi dential rate for usage 1,000 ICWI-I after their 1/1/2009 +25% increase. Residential _ I have assumed a 1.5 cent%KVVIi dro for April based on their announced reduction & will update this T u when we et an exact number. Gas Cheaper bY -63i/. 38% '--- - ........ Based on Bulk LP (BRLP3) which is applicable for customers using 120.1 - 300 allonstyear & equal to Residential # New rates im lemented 1/1/2009, with followi _Ec antes u LP Will Call BRWCLP -1 T RS NG Customer Charge increased $2 from $8 to $10/month & NFE rate droped 10 cents to 48 cent s/therm, +$1/Mo. in 4/1/2005 . -.BRLP3 LP P Customer Charge increased $1 .- 8 from $72 to $90/year, and NFE rate raised 10 cent to $1.00/gallon _ (CC +12/Yr. In 4/1/2005 . ??? - EIA changed to RIA & WNA changed to UTA, but no additions to new components of these initially. csvu_os/l9noos _ - ,' ... _._.._.......... j ° Attachment f 2 _ ._ ......._.......__ --.. _.._......., - ----.._._... Residenti C _.....Page 2 o ._.._..... _ ..._ ._ ... __. _...._. _ ._.... _. .._ .^... ? ....f..... _- --------- -- al Rate History By Components learwater Gas System -- ... -- ' _, ........_...... ? ^ ---- - ---._._........- .. - D _ t ._ _.......... ._........ . -- - - Total Rate C m on s?Therrn Contract Lp- Month NG/therm . ._. ._ .. P/ lion * ......._...-. -_ ECA EIA WNA PGA PGA PGA! Ilon t V-1.710 $ 2.030 $ 0.100 . _.. $ - $ $ 1.030 $ 0.960 $ 1.130 Nov-04 $ 1.710 ..............030 $ 2 _ .$ ...._ _._. 00 .. ._. ._...._. ._.. - - $ 1.030 $ 0.960 ...... .. $ 1.130 ._. Dec-04 $ 1.750 $ 2,090 $ 0.100 _ $ $ ? $1,070 $ 1.000 1.19 1.190 Jan-05 $ 1150 V---090 $_0.100 $ - $ $ 1.070 $ 1.000 $ 1.190 ?_,- Fetr05 $ 1.830 $ 2.150 $ 0.130 $ - $ 0.010 $ 1.110 $ 1.040 $ 1.210 Mar-05 $ 1.860 $ 2.180 _ J $ 0.130 $ 0.020 $ 0.020 $ 1.110 $ 1.040 $ 1.210 Apr-05 $ 1.860 $ 2.280 $ 0.130 $ 0.020 $ 0.020 $ 1.110 $ 1.040 $ 1.210 May-05 $ 1.790 $ 2.190 $ 0.130 $ 0.020 $ - $ 1.060 $ 0.990 $ 1.140 Jun-05 $ 1.790 $ 2.190 $ 0.130 $ 0.020 $ - $ 1.060 $ 0.990 $ 1.140 4` . Jul-05 $ 1.790 $ 2.190 - - - -- $ 0.130 $0.020 $ - $ 1.060 $ 0.990 $ 1 140 Aug-05 $ 1.820 $ 2.220 _ $ 0.140 $ 0.020 $ - $ 1.080 $ 1.010 $ 1.160 Sep-05 $ 1.970 $ 2.300 f V $ 0.140 $ 0.020 $ $ 1.230 $ 1.160 $ 1.240 FY 04105 Av . 1.803 2.162 $ 0.122 $ 0.012 $ 0.004 $ 1.086 1.015 1.174 2004 Avg. 1.652 1.968 $ 0.123 S - $ - 0.949 $ 0.879 $ 1.046 Oct-05 $ 2.190 $ 2.530 T $ 0.120 $ 0.020 $ - $ 1.470 $ 1.390 $ 1.490 Nov-05 $ 2.190 $ J 2.530 $ 0120 $ 0.020 $ - $ 1.470 $ 1.390 ____..........__..._.... $ 1.490 ...._.._` - _... ?_... Dec-05 _.$ .__.2.260 $ 2.490 $ 0.120 $ 0.020 $ - $ 1.540 $ 1.460 $ 1.450 Jan-06 $ 2.260 $ 2.490 ----- $ 0.120 $ 0.020 $ $ 1.540 $ 1.460 $ - -1.450 Feb-06 $ 2.220 $ 2.460 $ 0.160 $ 0.010 $ - $ 1.470 $ 1.390 $ 1.390 Mar-06 $ 2.22 0 $ 2.460 ... -"' . . . . . _. . -'-`_...... .... ...... - - ....__.._...,...._.... - $ 0.160 $ 0.010 $ - $ 1.470 $ 1390 $ 1.390 -- Apr-06 . $ 2 2.1 ?..?.,.110.. ..$ .. 2.320 ., .. . . M_ _.. . ._ - $ 0.170 $0.010 $ - $-1.350... .. $ 1.270... 40 $ 1.2 ._ .._... May-06 $ 1.960 $ 2.360 $ 0.170 $ 0.010 $ - $ 1.200 $ 9.120 $ 1.280 Jun-06 $ 1.920 $ 2.420 $ 0.180 $ 0.010 $ - $ 1.150 $ 1.070 $ 1.330 Jul-06 $ 1.910 $ 2.500 ?._..._._ _..._.._.__._...__ .._ _ ...,_._,_ $ 0.200 $ 0.010 $ - $ 1.120 $ 1.040 $ 1.390 m m 1 1.860 $ 2.600 $ 0. 20 0 $ 0.010 $ - $ 1.070 $ 0.990 $ 1.490 Sep-06 $ 1.860 $ 2.600 _ . _ _ $ 0.200 $ 0.010 $ - $ 1.070 $ 0.990 $ 1.490 FY 05106 Avg. 2.080 2.480 0.160 $ 0.013 - $1.327 1.247 1 A07 2005 Avg. 1.925 2.278 $ 0.127 $ 0.017 $ 0.004 1.198 1.125 1.256 Oct-06 $ 1.940 $ 2.600 -- $_0.180 $0.010 _ $ $ 1.170 $ 1.090 $ 1.510 _...._.,.?, Nov-06 $ 1.940 $ 2.600 $ 0.180 $ 0.010 $ - $ 1.170 $ 1.090 1.510 $ Deo-06 $ 1.940 $ 2.600 $ 0.180 $ 0.010 $ - - $ 1.170 1.170 $ 1.090 $ 1.510 Jan-07 $ 1.940 $ 2.600 - $ 0.180 $ 0.610 $ - $ 1.170 $ 1.090 $ 1.510 Feb-07 $1.940 $ 2.600 u ?__. . ,_...,..._,. $ 0.180 $ 0.010 $ - $ 1.170 $ 1.090 $ 1.510 Mar-07 $ ,..,,..1.940 $ W 2.600 --- $ 0.180 $ 0.010 $ - $ 1.170 $ 1.090 $ 1.510 Apr-07 $ 1.946' -$---2-.600 .__ ......................_ _... _._, _.._.____. $ 0.180 $ - - - - $ 0.030 $ 1.150 $ 1.070 $ 1.490 - May-07 $ 1.940 $ 2.740 $ 6.160 $ - $ 0.030 $ 1.150 $ 1.070 1.630 $ Jun-07 $ 1.920 $ 2.990 _ $ 0.180 $ - - $ 0.030 $ 1^.130 $ 1.050 $ 1.880 Jul-07 $ 1.840 $ 2.990 $ 0.1$0 $ - $ - $ 1.080 $ 1.000 $ 1.910 Aug-07 $ 1.840 $ 2.990 m... ?- $ 0.180 $ - $ - $ 1.080 $ 1.000 $ 1.910 -_T Se "7 $ 1.890 $ ^ 2.990 $ 0.180 $ - $ - $ 1.130 $ 1.050 $ 1.910 FY 06107 AA . $ 1.918 2.742 $ 0.180 0.005 0.008 1.145 1.065 1.649 2006 Avg. 2.012 2.501 0.175 0.017 - 1.246 1.166 1.415 T Oct-07 $ 1.840 $ 2.990 $ 0.180 $ - $ - $1.080 $ 1.000 $ 1.910 Nov-07 _ $ 1.840 $_3.170 $ 0.180 $ - $ - _ $ 1.080 $ 1.000 _ $ 2.090 Dec-07 _ $ 1.840 $ 3.170 $ 0.180 $ - $ - $ 1.080 $ 1.000 $ 2.090 Jan-08 $ 1.840 $ 3.170 $ 0.180 $ $ $ 1.080 $ 1.000 $ 2.090 Fetr08 $ 1.840 ?$ T 3.170 $ 0.180 $ - $ - $ 1.080 $ 1.000 $ 2.090 Mar-08 $ 1,810 $ 3.120 $ 0.150 $ - $ 0.030 $ 1.050 _$ 0.970 $ 2.040 Apr-08 $ 1.810 $ 3.120 $ 0.150 $ - $ 0.030 0.970 $ 2.040 May-08 $ 1.880 $ 3.120 _ $ 0.090 $ - $ 0.030 $ 1.180 $ 1.100 $ 2100 Jun-08 $ 1.990 $ 3.150 $ 0.070 $ - $ 0.030 $ 1.310 $ 1.230 $ 2.150 Jul-08 $ 2.250 $ 3.230 _ $ 0.150 $ - $0.030 $ 1.490 $ 1.410 $ 2.150 Au -08 $ 2.120 '$ 3.440 ?^ _ - -- $ 0.120 $ _ $ $ 1.420 $ 1.340 $ 2.420 Sep-08 $ 2.120 $ 3.340 $ 0.120 $ - $ - - -$1.420 $ 1.340 $ - 2.320 FY 07/08 Avg. $ 1.932 3.183 $ 0.146 - 0.013 1.193 1.113 2.124 2007 Avg. $ 1.893 $ 2.869 0.180 0.003 0.008 1.123 1.043 1.779 _.. _?-_. _ _ . ?_.,_...___... _ .. ... ---- .............. _ ?_........ ._ _-? Note: Custom er Charge increased b $21mont for h for both NG & LP on 41112005