Ordinance No. 2,1267140
ORDINANCE NO. 2126
AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE
CITY OF BAYTOWN, TEXAS, BY THE AMENDMENT OF CHAPTER 31,
"UTILITIES," BY AMENDING ARTICLE I, ELECTRICAL SERVICE,
BY AMENDING SECTION 31 -6, FUEL COST AND COST OF SERVICE
ADJUSTMENT, BY REPEALING SUBSECTIONS (b) AND (c) AND BY
ADOPTING NEW SUBSECTIONS (b) AND (c), AMENDING PRO-
VISIONS RELATING TO ADJUSTMENTS IN FUEL COST AND COST
OF SERVICE; PRESCRIBING A MAXIMUM PENALTY OF TWO HUNDRED
($200.00) DOLLARS; REPEALING ORDINANCES INCONSISTENT
HEREWITH; CONTAINING A SAVINGS CLAUSE; AND PROVIDING
FOR THE PUBLICATION AND EFFECTIVE DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
BAYTOWN, TEXAS:
Section 1: That the Code of Ordinances of the City of
Baytown, Texas, is hereby amended by the amendment of Chapter
31, "Utilities," Article I, Electric Service, by the amend-
ment of Section 31 -6, Fuel Cost and Cost of Service Adjust-
ment, by repealing subsections (b) and (c) of such section
as presently constituted and substituting in their places
new subsections (b) and (c), marked Exhibit "A" and Exhibit
"B," respectfully, and made a part hereof for all intents
and purposes.
Section 2: Repealing Clause: All ordinances or parts
of ordinances inconsistent with the terms of this ordinance
are hereby repealed; provided, however, that such repeal
shall be only to the extent of such inconsistency and in all
other respects this ordinance shall be cumulative of other
ordinances regulating and governing the subject matter
covered by this ordinance.
Section 3: Savings Clause: If any provision, section,
exception, subsection, paragraph, sentence, clause or phrase
of this ordinance or the application of same to any person
or set of circumstances, shall for any reason be held un-
constitutional, void or invalid, such invalidity shall not
7141
affect the validity of the remaining provisions of this
ordinance or their application to other persons or sets of
circumstances and to the end all provisions of this ordi-
nance are declared to be severable.
Section 4: Penalty Clause: Any person who shall
violate any provision of this ordinance shall be deemed
guilty of a misdemeanor and upon conviction shall be punished
by a fine of not less than Ten ($10.00) Dollars, nor more
than Two Hundred ($200.00) Dollars. Each day of the con-
tinuance of such violation shall be considered a separate
offense and each and every day shall constitute a separate
violation.
Section 5: Effective Date: This ordinance shall take
effect from and after ten (10) days from its passage by the
City Council. The City Clerk is hereby directed to give
notice hereof by causing the caption of this ordinance to be
published in the official newspaper of the City of Baytown
at least twice within ten (10) days after the passage of
this ordinance.
INTRODUCED, READ and PASSED by the affirmative vote of
the City Council of the City of Baytown on this the 23rd
day of November , 1976.
TOM GENTRY, Mayor
ATTEST:
EILEEN P. HALL, City Clerk
APPROVED:
NEEL RIfCHARDSONT City Attorney
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0
E X H I B I T "A"
7142
7143
FUEL COST ADJUSTMENT
Electric Service billed under all applicable rate schedules shall be subject to a Fuel Cost
Adjustment for changes in fuel cost. Monthly billing shall be adjusted upward or downward by
an amount per kwh to be calculated according to the following formula:
J(F — CF)
Fuel Adjustment Factor (FAF) = l S — .7386C X LF rounded to nearest
1 — T ( .0001
DEFINITIONS
F = Fuel Costs estimated to be incurred by the Company for the current month
and shall be composed of those costs as recorded in F.P.C. Accounts 501,
547 and 555 less the cost of fossil fuel recovered through interchange trans-
actions.
S = All kilowatthours estimated to be sold and recorded in the current month
by the Company, excluding interchange transactions.
T = Estimated composite tax rate for gross receipts and other revenue related
taxes and gross receipts payments for the Company expressed as decimal.
CF = A Correction Factor adjustment to be applied in the current month to pro-
vide for an allowance due to variance between actual and estimated fuel
adjustment revenues derived from the Fuel Adjustment Factor for the third
preceding month prior to the current month. The calculation of the Correct-
ion Factor is as follows —CF = [(A) —(B)] X (1 —T) where (A) is the
actual fuel adjustment revenues received from the Fuel Adjustment Factor
applied in the third preceding month and (B) is the fuel adjustment revenues
which would have been received from application of the Fuel Adjustment
Factor in the third preceding month if actual rather than estimated fuel cost
and kilowattliour sales (described above) had been available to calculate the
Fuel Adjustment Factor for that month.
LF = Loss factors to recognize differences in losses due to voltage levels of service.
Such loss factors are as follows:
Secondary Voltage Rate Schedules 1.03
Transmission Voltage Rate Schedules 0.96
Penalty Clause
If at the end of December 31, 1976, and on an annual basis thereafter, the net sum of the
Correction Factors for the previous 12 months exceeds 5% of the sum of "(B)" above for the
same period, then a penalty equal in amount to 10% of such excess will be computed and this
amount will be used to reduce the Fuel Adjustment Factor in the next succeeding March. This
reduction will not otherwise affect such computation of the Fuel Adjustment Factor for sub-
sequent periods.
7144
E X H I B I T "B"
7155
COST OF SERVICE ADJUSTMENT
Electric Service billed under all applicable rate schedules shall be subject to a Cost of Service
Adjustment for changes in costs as defined below. Monthly billing for the current month shall
be adjusted upward or downward by an amount per kwh to be calculated according to the
following formula:
(C — BC) — [CF(R — BR) l
12 + CA = Dollar COS Adj.
1 —T
Dollar COS Adj. COS Adj. /KWH (rounded to nearest .00010
EKWH
DEFINITIONS
BC = Base cost equal to the sum of the year -end level expenses for the twelve
months ended April 30, 1975, as follows:
(a) Salaries and wages $ 42,811,733
(b) FICA Taxes 2,403,059
(c) Depreciation 50,551,764
(d) Interest 67,666,026
(e) Preferred dividends 11,210,746
Total base cost $174,643,328
C = Sum of actual expense as described (for BC above) for 12 months ending
with second preceding month.
BR = April 30, 1975, year -end level electric operating revenues less fuel revenue
which would have been derived from associated fuel costs = $434,938,776
R = Sum of electric operating revenues exclusive of cost of service revenues
less fuel revenue which would be derived from associated fuel costs ad-
justed to reflect the effect of new rates and new fuel adjustment clause
for 12 months ending with second preceding month.
CF = BC = $174,643,328 = ,40154
BR $434,938,776
T = Composite tax rate for gross receipts and other revenue related taxes and
gross receipts payments for the Company expressed as a decimal for 12
months ending with second preceding month.
CA = Correction adjustment which is derived by subtracting the actual dollar
cost of service adjustment revenue from the calculated dollar cost of
service adjustment for the second preceding month.
EKWH = All kilowatt -hours estimated to be sold and recorded in the current month
excluding interchange transactions.