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Home My WebLink About2025-05-05 I02E Chapter 110_Natural Gas Rates_2ND READAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: May 5, 2025 AGENDA ITEM:Consideration of approval of an ordinance to amend Chapter 110, Natural Gas Service Rates and Charges, by amending Section 110.02, Monthly Rates, as specified [second reading] FORMAT:Ordinance SYNOPSIS INCLUDING PRO & CON: A natural gas rate increase was included in the FY2025 budget proposed for consideration for approved by the City Council. These rates will go into effect July 1, 2024. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: An increase of 15.38% to the existing small volume rate is recommended. This is an increase of $2.00 ($13.00 to $15.00) to the monthly rate for all firm natural gas service normally supplied through one meter as a single point of delivery for all residential, commercial, and industrial customers that consume 1,000 Ccf (100 cubic feet) or less per month. A decrease of 21.57% in the Non-Gas Commodity Charge of $0.048 ($0.2225 to $0.1745). An increase of 18.28% to the existing large volume rate is recommended. This is an increase of $4.25 ($27.50 to $31.75) to the monthly rate for all firm natural gas service normally supplied through one meter as a single point of delivery for all residential, commercial, and industrial customers that consume 1,000 Ccf (100 cubic feet) or more per month. A decrease of 0.90% in the Non-Gas Commodity Charge of $0.0026 ($0.2910 to $0.2884). COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: RECOMMENDATION: Approve the second reading of the ordinance in title only. ATTACHMENTS: I. Proposed Ordinance PREPARED BY: Lisa Bauman REVIEWED BY: Rudy Koester RK I2E 1 ORDINANCE NO. AN ORDINANCE TO AMEND CHAPTER 110, NATURAL GAS SERVICE RATES AND CHARGES, CITY OF WAUKEE, IOWA MUNICIPAL CODE, BY AMENDING SECTION 110.02, MONTHLY RATES, AS SPECIFIED BELOW: WHEREAS, the annual review of natural gas rates by the City of Waukee has determined the following changes to the rates for natural gas usage are necessary. BE IT ORDAINED by the City Council of the City of Waukee: Section 1: Chapter 110, Waukee Municipal Code, Section 110.02, Monthly Rates, subsection 1. Rate Schedule No. 1 – Small Volume (Firm), subsection 2. Rate Schedule No. 2 – Large Volume (Firm) and subsection 3. Rate Schedule No. 3 – Interruptible Commercial and Industrial Volume (Firm) are hereby repealed and enacted in lieu thereof are as follows: §110.02 Monthly Rates. 1.Rate Schedule No. 1 – Small Volume (Firm). A.Rate Imposed. This rate is applicable to all firm natural gas service normally supplied by one meter as a single point of delivery for all residential, commercial, and industrial customers that consume 1,000 Ccf (100 cubic feet) or less per month. Service Charge per Meter $15.00 Non-Gas Commodity Charge per Ccf $0.1745 B.Purchased Gas Calculation. Purchased gas calculation (PGC) shall be calculated each month by dividing the total quantity of Ccf (100 cubic feet) delivered to the City into the total dollars spent to have natural gas delivered to the City’s town border stations (TBS). C.Monthly Sales Volume Adjustment. The above rate and debt service charge shall be subject to the monthly sales volume adjustment (SVA). D.Meter Installation. Minimum fees for installation of gas meters on new construction shall be set by resolution of the Council. 2.Rate Schedule No. 2 – Large Volume (Firm). A.Rate Imposed. This rate is applicable to all firm natural gas service normally supplied by one meter as a single point of delivery for all residential, commercial, and industrial customers that consume 1,000 Ccf (100 cubic feet) or more per month. 2 B.Purchased Gas Calculation. Purchased gas calculation (PGC) shall be calculated each month by dividing the total quantity of Ccf (100 cubic feet) delivered to the City into the total dollars spent to have natural gas delivered to the City’s town border stations (TBS). C.Monthly Sales Volume Adjustment. The above rate and debt service charge shall be subject to the monthly sales volume adjustment (SVA). D.Meter Installation. Minimum fees for installation of meters on new construction shall be the cost of materials plus 15 percent and labor costs. 3.Rate Schedule No. 3 – Interruptible Commercial and Industrial Volume. A.Rate Imposed. This rate is applicable to any customer for non- domestic purposes where all service is taken by a single meter at one location, and where the average daily consumption is equal to or greater than 1,000 Ccf (100 cubic feet) per day. The customer must have the ability to curtail the use of natural gas within four hours of notification. B.Failure To Curtail Penalty. The City shall assess the following penalty charges, in addition to the priced, for failure to curtail natural gas consumption within four hours of notifications: (1) Non-Critical Day. $2.20 per Ccf (100 cubic feet) consumed after the notification period. (2) Critical Day. $11.30 per Ccf (100 cubic feet) consumed after the notification period. C.Late Payment Charge. A late payment charge of 1.5 percent shall be added to the past due amount if the bill is not paid by the due date. Meter Installation. D.Minimum Charge. The minimum charge is the service charge plus the commodity charge for all the Ccf (100 cubic feet) used. Service Charge per Meter $31.75 Non-Gas Commodity Charge per Ccf $0.2884 Service Charge per Meter $50.00 Non-Gas Commodity Charge per Ccf $0.090 3 E.Meter Installation. Minimum fees for installation of meters on new construction shall be the cost of materials plus 15 percent and labor costs. Section 2 Repealer. All ordinances or parts of ordinances in conflict with the provisions of this ordinance are hereby repealed. Section 3. Severability Clause. If any section, provision or part of this ordinance shall be adjudged invalid or unconstitutional, such adjudication shall not affect the validity of the ordinance as a whole or any section, provisions or part thereof not adjudged invalid or unconstitutional. Section 4. Effective Date. This ordinance shall be in effect on July 1, 2025 after its final passage, approval and publication as provided by law. Passed by the Council the ___ day of ______, 2025, and approved this ___ day of ______, 2025. Courtney Clarke, Mayor Attest: Rebecca D. Schuett, City Clerk