§ 48-203. Cost of service adjustment.

The cost of service adjustment clause authorized in the rate ordinance dated June 10, 1985, will continue in effect as adjusted to reflect the application of the limitation factor based on changes in the implicit price deflator of the gross domestic product to both increases and decreases in the cost of service per customer and the carry forward of any increase or decrease in excess of the amount allowed by the operation of the limitation factor to the next year, with the total adjustment for the next year subject to the limitation factor. Each monthly bill for residential and commercial gas service shall be adjusted according to the terms of the revised cost of service adjustment clause as follows:

(1)

Effective with bills rendered for the month of May 1993 and annually effective each May thereafter, the residential and commercial monthly rate shall be adjusted for increases or decreases in the cost per customer of providing gas service (including depreciation but excluding cost of gas, gross receipts taxes, income taxes, and return) for the previous year ended December 31 above or below such cost incurred in the second prior calendar year. These annual adjustments shall be cumulative. The operating expenses used in calculating the adjustments shall be for the applicable distribution system as reported to the state railroad commission in the annual report of Lone Star Gas Company, a Division of Enserch Corporation. Should the percentage change in cost of service per customer of providing gas service plus or minus the effect of a carry forward from the prior year exceed the rate of change in the implicit price deflator of the gross domestic product over the same period of time, the adjustment will be limited to a maximum change computed by multiplying the cost of service per customer of providing gas service in the second prior calendar year ended December 31 by the rate of change in the implicit price deflator of the gross domestic product. Any change in the cost of service per customer of providing gas service subject to the above limitation shall be included in the determination of the cost of service adjustment to be effective in the succeeding May billing month, however the maximum percentage change for the succeeding year will continue to be limited to the percentage change in the implicit price deflator of the gross domestic product. The adjustment per bill shall be rounded to the nearest whole cent.

(2)

The adjustment determined by subsection (1) of this section shall be multiplied by the same tax factor used in calculating the gas cost adjustment contained herein to include street and alley rental and state occupation tax due to the increasing or decreasing company revenues under this cost of service adjustment provision.

(Code 1994, § 11.807; Ord. No. 201, Item F, 9-14-1992)