Resolution No. 91341
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RESOLUTION NO. 9134
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON PROVIDING FOR THE ESTABLISHMENT OF NATURAL
GAS RATES TO BE CHARGED FOR GAS DISTRIBUTED AND
SUPPLIED BY THE CITY WITHIN ITS BOUNDARIES AND
APPROVING AND ADOPTING NATURAL GAS RATE SCHEDULES,
RULES FOR GAS SERVICE AND A FORM NATURAL GAS
TRANSPORTATION AGREEMENT
WHEREAS, the City Council of the City of Vernon adopted
Ordinance No. 1122 on September 5, 2006,-providing that rates to be
charged for natural gas distributed and supplied by the City within its
boundaries shall be set by resolution and that rules for gas service
for the Vernon Natural Gas System shall be adopted by resolution; and
WHEREAS, the City of Vernon is currently purchasing natural
gas transmission service from the Southern California Gas Company under
Wholesale Natural Gas Service Rate Schedule No. GW-VRN permitted by the
California Public Utilities Commission in Docket Nos. 00-04-060, 05-12-
044 and 01-12-018; and
WHEREAS, the Light & Power Department has prepared a report
on rate -setting methodology containing recommendations on new rates,
rules and a form transportation agreement that could be adopted by
resolution and said report was submitted to the City Council during a
public hearing on October 4, 2006; and
WHEREAS, the City Council of the City of Vernon held a public
hearing on October 4, 2006, to determine new gas rates for the City of
Vernon and establish Vernon's new Natural Gas Rate Schedules, Rules fort
Gas Service and form Natural Gas Transportation Agreement in accordance
with the recommendations of the Light & Power Department; and
WHEREAS, the City Council has heard and considered all
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evidence, both written and oral, presented in consideration of the
proposed new Natural Gas Rate Schedules, Rules for Gas Service and a
form Natural Gas Transportation Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the City of Vernon further
finds that all persons have had the opportunity to be heard or to file
written comments to the proposed new gas rates, gas schedules, rules,
and form Natural Gas Transportation Agreement and after due
consideration of all the evidence submitted at the public hearing
determines that there are compelling reasons to justify the
establishment of natural gas rates and the adoption of Natural Gas
Rate Schedules, Rules for Gas Service and a form Natural Gas
Transportation Agreement.
SECTION 3: The City Council of the City of Vernon hereby
adopts rates, which are set forth in the attached exhibits referenced
and identified below, which are hereby incorporated by this reference
and made a part hereof as though fully set forth at length and are
hereby adopted as the City's natural gas rates for natural gas
serviced by the City to be effective on October 6, 2006:
SCHEDULE NO. TYPE OF SERVICE EXHIBIT NO.
G-CS CUSTOMER SERVICE FEES A
G-1 RESIDENTIAL GAS SERVICE B
G-2 SMALL COMMERCIAL GAS SERVICE C
G-3 LARGE COMMERCIAL GAS TRANSPORTATION D
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SCHEDULE NO.
TYPE OF SERVICE
EXHIBIT NO.
G-4 LARGE COMMERCIAL GAS COMMODITY E
G-5 ELECTRIC GENERATION GAS TRANSPORTATION F
SECTION 4: The City Council of the City of Vernon hereby
approves and adopts the City of Vernon Gas Municipal Utility
Department Rules for Gas Service to be effective October 6, 2006, a
copy of which is attached hereto as Exhibit G and incorporated by
reference.
SECTION 5: The City Council of the City of Vernon hereby
approves and adopts the form Natural Gas Transportation Agreement
attached hereto as Exhibit H and incorporated by reference, for use by
the Vernon Gas Municipal Utility Department and qualified customers
taking service under Rate Schedule G-3, with the intent that the same
shall be a binding contract between the City and the customer upon
acceptance by the Acting City Clerk, or his designee.
SECTION 6: The City Council of the City of Vernon hereby
authorizes and empowers the Acting City Clerk, or his designee, to
execute individual copies of the form Natural Gas Transportation
JAgreement on an as -needed basis and to make whatever nonsubstantive
and administrative changes, upon advice of counsel, to the form
Natural Gas Transportation Agreement as is necessary to carry out the
intent of this Resolution. Such additions, deletions and other
changes therein as the Acting City Clerk, or his designee, executing
the Agreement may approve, is conclusively evidenced by the execution
and delivery of the Agreement.
SECTION 7: Any provisions of the rules and regulations of
the Southern California Gas Company adopted by Vernon relating to the
exercise of jurisdiction by the Public Utilities Commission of the
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1 State of California shall be deemed to refer to and mean the City
2 Council of the City of Vernon.
3 SECTION 8: The Acting City Clerk of the City of Vernon
4 shall certify to the passage of this resolution, and thereupon and
5 thereafter the same shall be in. full force and effect.
6 APPROVED AND ADOPTED this 4th day of October, 2006.
7
8 i�L-yGf• '✓
9 THOMAS A. Y16ARRA, Mayor Pro Tem
10 ATTEST:
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13 BRUCE V. MAL ENHORST, JR.
Acting City Clerk
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 9134, was duly adopted by the City Council of the City
of Vernon at a regular meeting of the City Council duly held on
Wednesday, October 4, 2006, and thereafter was duly signed by the Mayor
Pro Tem of the City of Vernon.
(SEAL)
BRUCE
Actin
MALKENHORST, JR.
ity Clerk
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EXHIBIT
0
CITY OF VERNON
GAS MUNICIPAL UTILITIES DEPARTMENT
Schedule GCS
CUSTOMER SERVICE FEE
APPLICABILITY
This schedule applies to all customers that have elected natural gas service from City of Vernon's
natural gas system.
RATES
Returned Check Charge: $20.00
Late Charge: 5% of Unpaid Balance
(Final Notice)
Reconnect Charge:
Monday — Thursday, 7:30 am — 3:00 pm $85.00
All other hours $300.00
Gas Meter Test: $250.00
(Refundable if meter in error greater than 2%)
Page 1 of 1
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
EXHIBIT
CITY OF VERNON
GAS MUNICIPAL UTILITIES DEPARTMENT
Schedule G-1
RESIDENTIAL GAS SERVICE
APPLICABILITY
This schedule applies to natural gas service to individually metered single family premises, including
those separately metered in a multi -family complex, that have elected natural gas service from City of
Vernon's natural gas distribution system.
RATES
Monthly Service Charge:
Transportation Charge:
$10
25.000 Cents per Therm
Commodity Charge: Commodity Charge is equal to the City's Weighted Average Cost of Gas
calculated at the SoCalGas Border for gas purchased by the City for each
month for customers purchasing gas from the City. Gas supply will
consist of monthly index price gas, daily market priced gas, and long-term
supply purchased for customers purchasing gas from the City. The
Commodity Charge includes the cost of transporting the gas to the
SoCalGas Border. From time -to -time, the Commodity Charge may
include a Purchased Gas Adjustment that will be used maintain a zero sum
gain to COV for gas sales.
Commodity Administrative Fee: 0.300 Cents per Therm
SPECIAL NOTES
1. Residential customers receiving natural gas service from the City of Vernon are not eligible for
Schedule G-CARE (SoCalGas Rate), or any other SoCalGas rates or SoCalGas benefit programs.
2. Costs for connection of Customer's facility to City's gas system, or modification otherwise,
including the cost to install electronic meter reading equipment, are not covered under this
Schedule, and shall be covered by an "Application and Contract for Natural Gas Service." All
connection costs shall be paid by Customer.
Page 1 of 2
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
3. In the event of curtailment, any Customer unable or unwilling to curtail shall be assessed
penalty based on the rate per Therm that SoCalGas would charge customers whose volumes
used are in violation of curtailment. The City shall not be liable for damages caused by
curtailment, discontinuance, or shut off of gas service.
4. Gas purchased under this schedule shall be used only by the Customer and such Gas may not be
sold, transported, assigned, distributed, exchanged, or otherwise transferred to benefit another
customer or provide non -municipal natural gas to any natural gas user, transporter, or consumer
within the City.
5. In -Lieu of Tax and Franchise Fee. The base rates and charges have been increased by 3 percent
to reflect payments in -lieu of tax and franchise payments.
6. Any additional transmission costs, taxes, fees, regulatory surcharges, and interstate or intrastate
pipeline charges, incurred by City on behalf of Customer will be passed through to Customer at
cost.
Page 2 of 2
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
AgnmHo 11
C
CITY OF VERNON
GAS MUNICIPAL UTILITIES DEPARTMENT
Schedule G2
SMALL COMMERCIAL GAS SERVICE
APPLICABILITY
This schedule is for combined gas commodity and transportation service to small commercial customers
using less than 250,000 Therms per year that have elected gas service through City of Vernon's natural
gas system. This schedule is also applicable to all other non-residential customers that have elected
Core Service.
RATES
Monthly Service Charge:
Transportation Charge:
$50
15.000 Cents per Therm
Commodity Charge: Commodity Charge is equal to the City's Weighted Average Cost of Gas
calculated at the SoCalGas Border for gas purchased by the City for each
month for customers purchasing gas from the City. Gas supply will
consist of monthly index price gas, daily market priced gas, and long-term
supply purchased for customers purchasing gas from the City. The
Commodity Charge includes the cost of transporting the gas to the
SoCalGas Border. From time -to -time, the Commodity Charge may
include a Purchased Gas Adjustment that will be used maintain a zero sum
gain to COV for gas sales.
Commodity Administrative Fee: 0.30 Cents per Therm
SPECIAL NOTES
1. Customers purchasing Gas Commodity from City of Vernon shall provide an estimate of each
month's consumption, days of operation, and a facility contact responsible for natural gas
consuming equipment.
2. Costs for connection of Customer's facility to City's gas system, or modification otherwise,
including the cost to install electronic meter reading equipment, are not covered under this
Page 1 of 2
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
Schedule, and shall be covered by an "Application and Contract for Natural Gas Service." All
connection costs shall be paid by Customer.
3. In the event of curtailment, any Customer unable or unwilling to curtail shall be assessed
penalty based on the rate per Therm that SoCalGas would charge customers whose volumes
used are in violation of curtailment. The City shall not be liable for damages caused by
curtailment, discontinuance, or shut off of gas service.
4. Gas purchased under this schedule shall be used only by the Customer and such Gas may not be
sold, transported, assigned, distributed, exchanged, or otherwise transferred to benefit another
customer or provide non -municipal natural gas to any natural gas user, transporter, or consumer
within the City.
5. In -Lieu of Tax and Franchise Fee. The base rates and charges have been increased by 3 percent
to reflect payments in -lieu of tax and franchise payments.
6. Any additional transmission costs, taxes, fees, regulatory surcharges, and interstate or intrastate
pipeline charges, incurred by City on behalf of Customer will be passed through to Customer at
cost.
Page 2 of 2
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
EXHIBIT
Ic
CITY OF VERNON
GAS MUNICIPAL UTILITIES DEPARTMENT
Schedule G-3
LARGE COMMERCIAL GAS TRANSPORTATION
APPLICABILITY
This schedule is for gas transportation service to large commercial customers using at least
250,000 Therms per year that have elected only gas transportation service through City of
Vernon's natural gas system. Customers receiving service under this schedule must purchase
commodity gas from a Third -Party Supplier other than City of Vernon.
RATES
Monthly Customer Charge: $300
Monthly Transportation Charges:
Tier I 0 - 20,833 Therms
Tier II 20,834 — 83,333 Therms
Tier III Over 83,333 Therms
SPECIAL CONDITIONS
Rate, in Cents per Therm
12.561
6.340
4.972
1. As a condition precedent to service under this schedule, a "Natural Gas Transportation
Agreement" must be executed with City. The Transportation Agreement shall provide
specific terms and conditions consistent with this schedule.
2. Costs for connection of Customer's facility to City's gas system, or modification
otherwise, including the cost to install electronic meter reading equipment, are not
covered under this Schedule, and shall be covered by an "Application and Contract for
Natural Gas Service." All connection costs shall be paid by Customer.
3. Transportation of natural gas shall be consistent with SoCalGas Rule No. 30,
"Transportation of Customer -Owned Gas," except where it conflicts with Vernon's rates
and rules.
Pagel of 3
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
4. Nomination procedures shall apply to gas transported and delivered to Customer by
Vernon as follows.
(a) All nominations shall be communicated to Vernon (or its designated agent) thirty
(30) minutes prior to SoCalGas' deadlines. Communication shall be confirmed by email
or facsimile.
(b) All determinations by Vernon as to allocation points and/or maximum daily
quantities related thereto or as to the procedures utilized for any allocation process, when
made by Vernon, shall be final.
(c) In the event of a declared Over -Nomination Event by SoCalGas, if any Customer is
unable or unwilling to reduce its transportation nomination within the two (2) hour
window allotted by SoCalGas and Customer's nominations exceed 110% of its gas usage,
Customer may, at Vernon's sole discretion, be assessed a charge based on the rate per
Therm that SoCalGas would charge customers whose nomination exceed 110%.
(d) Winter Deliveries. During November through March, any Customer unable or
unwilling to nominate and deliver volumes meeting the minimum requirement as
specified by SoCalGas in its current applicable Rule 30, may, at Vernon's sole discretion,
be assessed a charge based on the rate per Therm that SoCalGas would charge customers
whose nomination and delivery fails to meet the minimum requirement as specified by
SoCalGas in its current applicable Rule 30.
5. In the event of curtailment, any Customer unable or unwilling to curtail shall be assessed
penalty based on the rate per Therm that SoCalGas would charge customers whose
volumes used are in violation of curtailment. The City shall not be liable for damages
caused by curtailment, discontinuance, or shut off of gas service.
6. Monthly imbalances shall be resolved as follows.
(a) Over -Deliveries. Vernon shall permit Customer to carry-over, to the following
month, over -delivery volumes of up to 10% of Customer's consumption for the month in
which the over -delivery occurred. Any Customer volumes carried over will be applied
first to the following month's consumption. Any volumes of over -deliveries in excess of
10% of Customer's consumption shall be purchased by Vernon by crediting to the
Customer an amount that is not less than the volume of over -deliveries times the
SoCalGas Buy -Back Rate in SoCalGas Schedule G-IMB for the month in which the
excess imbalance was incurred.
(b) Under -Deliveries. Vernon shall permit Customer to carry-over, to the following
month, under -delivery volumes of up to 10% of Customer's consumption for the month
in which the under -delivery occurred. Any volumes of under -deliveries up to 10% of
Customer's consumption shall be applied to the following month's consumption. Any
volumes of under -deliveries in excess of 10% of Customer's consumption shall be sold to
Page 2 of 3
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
Customer by Vernon at a rate that is not more than the volume of under -deliveries times
the SoCalGas Standby Procurement Charge in SoCalGas Schedule G-IMB for the month
in which the excess imbalance was incurred.
(c) Imbalance Trading. Vernon has no program for trading of monthly imbalances
amongst Vernon customers; however, Vernon, or Vernon's gas management agent, may,
at its sole discretion, be willing to facilitate imbalance trading through SoCalGas
consistent with Schedule G-IMB. As such, Vernon specifically does not imply an
obligation to facilitate imbalance trading.
(d) Stricter Provisions. Should SoCalGas impose additional, more restrictive, balancing
provisions upon Vernon, the stricter provisions will be adopted and implemented by
Vernon, as required by SoCalGas, and thereafter will apply to Customer. Such more
restrictive balancing conditions may include the winter balancing rules contained in
SoCalGas Rule 30. Customer shall be subject to changed balancing requirements at the
time such balancing is imposed by SoCalGas upon Vernon, irrespective of prior written
notice to Customer; however, Vernon will attempt to provide advance written notice to
Customer.
7. Gas transported under this schedule shall be used only by the Customer and such Gas
may not be sold, transported, assigned, distributed, exchanged, or otherwise transferred to
benefit another customer or provide non -municipal natural gas to any natural gas user,
transporter, or consumer within the City.
8. In -Lieu of Tax and Franchise Fee: The base rates and charges have been increased by 3
percent to reflect payments in -lieu of tax and franchise payments.
9. Any additional transmission costs, taxes, fees, regulatory surcharges, and interstate or
intrastate pipeline charges, incurred by City on behalf of Customer will be passed through
to Customer at cost.
Page 3 of 3
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
EXHIBIT
I0
CITY OF VERNON
GAS MUNICIPAL UTILITIES DEPARTMENT
Schedule G4
LARGE COMMERCIAL GAS COMMODITY
APPLICABILITY
This schedule is for combined gas commodity and transportation service to large commercial customers
using at least 250,000 Therms per year that have elected gas service through City of Vernon's natural
gas system.
RATES
Monthly Customer Charge: $300
Monthly Transportation Charges: Rate, in Cents per Therm
Tier I 0 — 20,833 Therms 12.561
Tier II 20,834 — 83,333 Therms 6.340
Tier III Over 83,333 Therms 4.972
Commodity Charge: Commodity Charge is equal to the City's Weighted Average Cost of Gas
calculated at the SoCalGas Border for gas purchased by the City for each month
for customers purchasing gas from the City. Gas supply will consist mainly of
index price gas, daily market priced gas, and long-term supply purchased for
customers purchasing gas from the City. The Commodity Charge includes the
cost of transporting the gas to the SoCalGas Border. From time -to -time, the
Commodity Charge may include a Purchased Gas Adjustment that will be used
maintain a zero sum gain to COV for gas sales.
Commodity Administrative Fee:
Page 1 of 2
0.30 cents per Therm
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
SPECIAL NOTES
L Customers purchasing Gas Commodity from City of Vernon shall provide an estimate of each
month's consumption, days of operation, and a facility contact responsible for natural gas
consuming equipment.
2. Costs for connection of Customer's facility to City's gas system, or modification otherwise,
including the cost to install electronic meter reading equipment, are not covered under this
Schedule, and shall be covered by an "Application and Contract for Natural Gas Service." All
connection costs shall be paid by Customer.
3. In the event of curtailment, any Customer unable or unwilling to curtail shall be assessed
penalty based on the rate per Therm that SoCa1Gas would charge customers whose volumes
used are in violation of curtailment. The City shall not be liable for damages caused by
curtailment, discontinuance, or shut off of gas service.
4. Gas purchased under this schedule shall be used only by the Customer and such Gas may not be
sold, transported, assigned, distributed, exchanged, or otherwise transferred to benefit another
customer or provide non -municipal natural gas to any natural gas user, transporter, or consumer
within the City.
5. In -Lieu of Tax and Franchise Fee. The base rates and charges have been increased by 3 percent
to reflect payments in -lieu of tax and franchise payments.
6. Any additional transmission costs, taxes, fees, regulatory surcharges, and interstate or intrastate
pipeline charges, incurred by City on behalf of Customer will be passed through to Customer at
cost.
Page 2 of 2
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
EXHIBIT
CITY OF VERNON
GAS MUNICIPAL UTILITIES DEPARTMENT
Schedule G-5
ELECTRIC GENERATION GAS TRANSPORTATION
APPLICABILITY
This schedule is for gas transportation service to electric generation customers using at least
36,500,000 Therms per year (100,000 Therms per day) that have elected only gas transportation
service through City of Vernon's natural gas system. Customers receiving service under this
schedule must purchase commodity gas from a Third -Party Supplier other than City of Vernon
Gas Department.
RATES
Monthly Customer Charge: $700
Monthly Transportation Charges: 4.526 Cents per Therm
SPECIAL CONDITIONS
1. As a condition precedent to service under this schedule, a "Natural Gas Transportation
Agreement" must be executed with City. The Transportation Agreement shall provide
specific terms and conditions consistent with this schedule.
2. Costs for connection of Customer's facility to City's gas system, or modification
otherwise, including the cost to install electronic meter reading equipment, are not
covered under this Schedule, and shall be covered by an "Application and Contract for
Natural Gas Service." All connection costs shall be paid by Customer.
3. Transportation of natural gas shall be consistent with SoCalGas Rule No. 30,
"Transportation of Customer -Owned Gas," except where it conflicts with Vernon's rates
and rules.
4. Nomination procedures shall apply to gas transported and delivered to Customer by
Vernon as follows.
Page 1 of 3
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
(a) All nominations shall be communicated to Vernon (or its designated agent) thirty
(30) minutes prior to SoCalGas' deadlines. Communication shall be confirmed by email
or facsimile.
(b) All determinations by Vernon as to allocation points and/or maximum daily
quantities related thereto or as to the procedures utilized for any allocation process, when
made by Vernon, shall be final.
(c) In the event of a declared Over -Nomination Event by SoCalGas, if any Customer is
unable or unwilling to reduce its transportation nomination within the two (2) hour
window allotted by SoCalGas and Customer's nominations exceed 110% of its gas usage,
Customer may, at Vernon's sole discretion, be assessed a charge based on the rate per
Therm that SoCalGas would charge customers whose nomination exceed 110%.
A Winter Deliveries. During November through March, any Customer unable or
unwilling to nominate and deliver volumes meeting the minimum requirement as
specified by SoCalGas in its current applicable Rule 30, may, at Vernon's sole discretion,
be assessed a charge based on the rate per Therm that SoCalGas would charge customers
whose nomination and delivery fails to meet the minimum requirement as specified by
SoCalGas in its current applicable Rule 30.
5. In the event of curtailment, any Customer unable or unwilling to curtail shall be assessed
penalty based on the rate per Therm that SoCalGas would charge customers whose
volumes used are in violation of curtailment. The City shall not be liable for damages
causedbycurtailment, discontinuance, or shut off of gas service.
6. Monthly imbalances shall be resolved as follows.
(a) Over -Deliveries. Vernon shall permit Customer to carry-over, to the following
month, over -delivery volumes of up to 10% of Customer's consumption for the month in
which the over -delivery occurred. Any Customer volumes carried over will be applied
first to the following month's consumption. Any volumes of over -deliveries in excess of
10% of Customer's consumption shall be purchased by Vernon by crediting to the
Customer an amount that is not less than the volume of over -deliveries times the
SoCalGas Buy -Back Rate in SoCalGas Schedule G-IMB for the month in which the
excess imbalance was incurred.
(b) Under -Deliveries. Vernon shall permit Customer to carry-over, to the following
month, under -delivery volumes of up to 10% of Customer's consumption for the month
in which the under -delivery occurred. Any volumes of under -deliveries up to 10% of
Customer's consumption shall be applied to the following month's consumption. Any
volumes of under -deliveries in excess of 10% of Customer's consumption shall be sold to
Customer by Vernon at a rate that is not more than the volume of under -deliveries times
the SoCalGas Standby Procurement Charge in SoCalGas Schedule G-IMB for the month
in which the excess imbalance was incurred.
Page 2 of 3
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
(c) Imbalance Trading. Vernon has no program for trading of monthly imbalances
amongst Vernon customers; however, Vernon, or Vernon's gas management agent, may,
at its sole discretion, be willing to facilitate imbalance trading through SoCalGas
consistent with Schedule G-IMB. As such, Vernon specifically does not imply an
obligation to facilitate imbalance trading.
(d) Stricter Provisions. Should SoCalGas impose additional, more restrictive, balancing
provisions upon Vernon, the stricter provisions will be adopted and implemented by
Vernon, as required by SoCalGas, and thereafter will apply to Customer. Such more
restrictive balancing conditions may include the winter balancing rules contained in
SoCalGas Rule 30. Customer shall be subject to changed balancing requirements at the
time such balancing is imposed by SoCalGas upon Vernon, irrespective of prior written
notice to Customer; however, Vernon will attempt to provide advance written notice to
Customer.
7. Gas transported under this schedule shall be used only by the Customer and such Gas
may not be sold, transported, assigned, distributed, exchanged, or otherwise transferred to
benefit another customer or provide non -municipal natural gas to any natural gas user,
transporter, or consumer within the City.
8. In -Lieu of Tax and Franchise Fee: The base rates and charges have been increased by 3
percent to reflect payments in -lieu of tax and franchise payments.
9. Any additional transmission costs, taxes, fees, regulatory surcharges, and interstate or
intrastate pipeline charges, incurred by City on behalf of Customer will be passed through
to Customer at cost.
Page 3 of 3
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
EXHIBIT
G
CITY OF VERNON
GAS MUNICIPAL UTILITIES DEPARTMENT
RULES FOR GAS SERVICE
The latest revision of the RULES FOR GAS SERVICE has been prepared by the Gas Municipal
Utilities Department. The City Council of the City of Vernon shall review and approve these
Rules. Subsequent City Council Resolutions are necessary for any and all future updating of
these Rules. For each case, those conditions drafted in a Resolution will take precedence until
the Rules and Regulations are revised to reflect those changes.
Rule
Description
Revised
1.
Definitions
10/6/06
2.
Description of Service
10/6/06
3.
Application for Service
10/6/06
4.
Contracts
10/6/06
5.
Special Information Required on Forms
10/6/06
6.
Establishment and Reestablishment of Credit
10/6/06
7.
Prepayments
10/6/06
8.
Notices
10/6/06
9.
Presentation and Payment of Bills
10/6/06
10.
Disputed Bills
10/6/06
11.
Discontinuance and Restoration of Service
10/6/06
12.
Rate and Optional Rates
10/6/06
13.
Shortage of Supply and Interruption of Service
10/6/06
14.
Service Connections and Facilities on Customer's Premises
10/6/06
15.
Meter Test and Adjustment of Bills for Meter Error
10/6/06
16.
Supply to Separate Premises and Use by Others
10/6/06
Page 1 of 19
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
Rule No. 1. DEFINITIONS
For the purpose of these Rules the terms and expressions listed below shall have the meanings
set forth opposite them when initially capitalized in the text.
Agent Marketer (Agent: Agents are individuals, companies, or consortiums that are appointed
by noncore customers to act on their behalf in activities such as the purchasing, nominating and
balancing of gas supplies. As an example, however, Agents bear no financial responsibility for
the transportation imbalances incurred by the customers they represent.
British Thermal Unit JBIiih The standard unit for measuring a quantity of thermal energy. One
Btu equals the amount of thermal energy required to raise the temperature of one pound of water
one degree Fahrenheit and is exactly defined as equal to 1,055.05585262 joule, rounded to
1,055.056 joule. (A joule is equal to one watt -second.)
Commodity Administrative Fee: Fee charged to customers who procure supply directly from
COV to cover gas purchasing expenses.
Commodity Charge: Commodity Charge is equal to the City's Weighted Average Cost of Gas
calculated at the SoCalGas Border for gas purchased by the City for each month for customers
purchasing gas from the City. Gas supply will consist of monthly index price gas, daily market
priced gas, and long-term supply purchased for customers purchasing gas from the City. The
Commodity Charge includes the cost of transporting the gas to the SoCalGas Border. From
time -to -time, the Commodity Charge may include a Purchased Gas Adjustment that will be used
maintain a zero sum gain to COV for gas sales.
COV: City of Vernon
Contracted Marketer: Contracted Marketers are individuals, companies, or consortiums that
arrange for natural gas procurement -related activities on behalf of noncore customers.
Contracted Marketers must enter into a contract with SoCalGas and meet certain credit
requirements. They must comply with SoCalGas' Rules 30 and 35 and all other tariffs which
address the transportation and management of customer -owned gas on SoCalGas' system.
Core Service: Core Service consists of all residential usage regardless of size, all commercial
usage less than 20,800 Therms per month, and all other customers that have elected Core Service
under Rate Schedule G-2.
Curtailment: When SoCalGas and/or Vernon (jointly or separately referred to hereafter in this
definition as "Utility") or other transmission pipeline used by Vernon, initiates suspension of gas
service, Utility may temporarily reduce the daily quantity of gas it will transport or deliver or
terminate service entirely for certain service categories as needed for operational and/or
contractual requirements. Curtailment is implemented when, in the Utility's judgment, there
exists a restriction or limitation on Utility transmission or distribution pipelines necessary for the
acceptance, transportation or subsequent redelivery of gas resulting in Utility being unable to
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City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
meet its operational, contractual or gas customers' requirements or when the Utility has a
deficiency of gas supply available to meet its operational, contractual or sales customers'
requirements.
Customer -Owned Gas: Natural gas transported by Vernon for customer's own use where title to
such natural gas is held by Vernon's customer or third party and is not a part of the Vernon -
owned system supplies.
Customer's Point of Delivery: The COV natural gas meter located at the Customer's place of
consumption.
Day: Period commencing at 12:00 midnight (Pacific time) on any calendar day and ending at
12:00 midnight (Pacific time) on the next succeeding calendar day.
Decatherm: Ten Therms or 1,000,000 British thermal units (Also 1 MMBtu).
Force Majeure: Unanticipated events or conditions beyond the reasonable control of the party
claiming Force Majeure which could not have been prevented by the exercise of due diligence.
Force Majeure as it applies to tariffs, or rate schedules specifically, does not include required
maintenance of customer's facilities, plant closures, or economic conditions.
Heating Value: Number of Btus liberated by the complete combustion at constant pressure of
one cubic foot of natural gas at a base temperature of sixty degrees Fahrenheit (60°F) and a
pressure base of fourteen and seventy-three hundredths (14.73) psia, with air at the same
temperature and pressure as the natural gas, after the products of combustion are cooled to the
initial temperature of the natural gas, and after the water vapor of the combustion is condensed to
the liquid state. The Heating Value of the natural gas shall be corrected for the water vapor
content of the natural gas being delivered except that, if such content is seven (7) pounds or less
per one million (1,000,000) cubic feet, the natural gas shall be considered to be dry.
Marketer: Third party which accesses one or more interstate or intrastate pipeline systems for
the purpose of transporting natural gas to SoCalGas on Marketer's own behalf or on the behalf of
designated end -use customers.
Mcf1d: Thousands of cubic feet per day. Measure quantifies the amount of gas being consumed
or transported on a daily basis.
Noncore Service: Noncore Service is for all customers not defined as Core Service. Customers
receiving noncore service must have Automated Meter Reading (AMR) equipment installed at
customer's expense as a condition of noncore service.
Premises: The area of land employed in a single enterprise, as determined by the City, whether
or not divided by a dedicated street, highway, other public thoroughfare, or a railway.
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City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
Purchased Gas Adjustment (PGA): The PGA is applicable to Customers purchasing Gas from
COV. The PGA may be negative or positive and will show as a line item in COV's monthly
posted Commodity Charge. The purpose of the PGA is to maintain a zero sum gain to COV for
Commodity Gas Sales.
Over -Nomination Event: As defined in SoCalGas Rule No. 30. Determined solely by SoCalGas
in the event transportation nominations received by SoCalGas for a specific date of gas flow
exceed SoCalGas expected system capacity.
SoCalGas: Southern California Gas Company, also "The Gas Company."
SoCalGas Border: Delivery points for Gas into the SoCalGas system.
Therm: 100,000 British Thermal Units.
Third -Party Sun Tier: Supplier of natural gas to noncore customers including, but not limited to
Energy Service Provider, Contracted Marketer, Agent, or its equivalent.
WACOG. See Weighted Average Cost of Gas.
Weighted Average Cost of Gas (WACOG): The average cost of purchased gas, based on
specific quantities and associated prices.
Page 4 of 19
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
Rule No. 2. DESCRIPTION OF SERVICE
The following general rules shall apply to all services.
The character of service available at any particular location should be ascertained by
inquiry at the City's office.
2. The Rate Schedules are applicable for service where the Customer transports its entire
gas requirements through the City's Gas system, and are not applicable where a part of
the Customer's gas requirements are supplied from some other source.
3. The gas supplied by Vernon is natural gas that is obtained from various sources,
primarily oil and gas fields, but also includes landfills and other biomass processes. The
gas may consist of any combustible gas or gases so produced. The gas is processed to
remove condensable constituents, to minimize the concentration of certain impurities as
specified by orders of the California Public Utilities Commission and to add a warning
odorant. Customers using gas supplied by Vernon for processes which are affected by
impurities in excess of specified minimum levels are responsible for testing gas supplied
and for rendering the gas suitable for their intended uses.
EXCEPT AS PROVIDED IN THIS RULE, VERNON MAKES NO WARRANTIES AS
TO THE NATURE, COMPOSITION OR PROPERTIES OF THE NATURAL GAS
SUPPLIED AND THE OBLIGATIONS SET FORTH IN THIS RULE ARE
EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES, GUARANTIES OR
LIABILITIES, EXPRESS OR IMPLIED, ARISING BY LAW OR OTHERWISE
(INCLUDING WITHOUT LIMITATION ANY OBLIGATIONS OF VERNON WITH
RESPECT TO FITNESS, MERCHANTABILITY AND CONSEQUENTIAL
DAMAGES).
4. Heating Value of Gas Served. The heating value of the natural gas served will vary from
time to time depending upon the supplies being drawn and the relative quantities being
taken. The monthly average heating values (in Btu per cubic foot, dry basis, at normal
atmospheric pressure of 30" mercury and a temperature of 60 degrees Fahrenheit) of the
gas served 1000-1060 Btu, and the maximum variation will rarely exceed 100 Btu above
or below this range.
5. Pressure. The standard delivery pressure at the point of delivery is eight inches of water
column. For connected loads of one million Btu/hour or greater, the following delivery
pressures can be provided upon request and acceptance by Vernon:
a) Two Pounds
b) Five Pounds
c) Service at as -available fluctuating pressures from the point of service
d) Such other pressure as the Vernon and the Customer agree to
Page 5 of 19
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
Rule No. 3. APPLICATION FOR SERVICE
A. Application for Service. Each applicant for gas service will be required to sign an
Application on a form provided by the City and, upon request, will be required to furnish
the following information:
1. Name of applicant (if not an individual, insert business organization and person to
be served).
2. Date and place of Application.
3. Location of Premises to be served.
4. Date applicant will be ready for service.
5. Whether the Premises have been heretofore supplied.
6. Purpose for which service is to be used.
7. Applicant's mailing address.
8. Whether applicant is owner or tenant of, or agent for, the Premises.
9. Rate Schedule desired if optional rate is available.
10. Information to establish credit of applicant.
11. Such other information as the City may reasonably require.
The Application is a request for service and does not in itself bind the City to provide
service except under reasonable conditions, nor does it bind the applicant to take service
for a longer period than the minimum requirements of the Rate Schedule.
B. Individual Liability for Joint Service. Two or more Persons who join in one
Application shall be jointly and severally liable thereunder and shall be billed by means
of a single periodic bill mailed to the Person designated on the Application to receive the
bill.
C. Change in Customer's Equipment or Operations. Customers shall give the City
written notice of the extent and nature of any material change in the size, character, or
extent of its equipment or operations for which the City is supplying gas service before
making any such change.
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City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
Rule No. 4. CONTRACTS
A. Facilities Contracts. A contract or agreement to pay for the use, installation, or removal
of facilities will be required if the provisions of the rate schedules so specify, in which
case the terms of the contract will be governed thereby.
When a Person, whether or not a Customer, desires to have the City modify, rearrange,
relocate, or remove any of its facilities, the City if it agrees to make such changes may
require the Person, at whose request the changes are made, to agree to pay, in advance or
otherwise, the cost to the City of making the changes.
B. City Council Approval. Standard contract forms shall be approved by the City Council
by resolution pursuant to City Charter Section 8.10. Such standard contracts may be
executed by the City Administrator or his designee in accordance with these Rules and
the rate schedules without additional City Council approval.
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City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
Rule No. 5. SPECIAL INFORMATION REQUIRED ON FORMS
A. Applications and Contracts. Each Application and contract for gas service will contain
the following provision:
This Application or contract for services shall at all times be subject to the rules and
regulations of the City of Vernon, which may be changed or modified by the City
Council from time to time in the exercise of its jurisdiction.
B. Customer's Bills. Information printed on each bill for gas service will include the
following:
PLACE OF PAYMENT
The City of Vernon Customer Service Division, 4305 Santa Fe Avenue, Vernon, CA
90058-1786 is the only authorized payment station. If paid elsewhere, the City is not
responsible for payments delayed in reaching said office. Checks shall be made payable
to the City of Vernon.
PAYMENT
Bills are due and payable on the Date of Presentation shown on this bill. Bills become
delinquent and subject to a late fee if payment is not received (postmark not acceptable)
by the City of Vernon 20 days thereafter. If not paid within this time, service may be
discontinued. If discontinued, a reconnection charge, pre -payment of the closing bill
equal to twice the average monthly bill, and the entire delinquent bill shall be remitted in
full before a discontinued service will be reestablished.
RETURNED CHECKS
1. If a check for payment is returned unpaid, a service charge will be assessed.
2. Payment in lieu of the returned check will be accepted only in the form of cash,
money order, or cashier's check.
3. Personal or business checks will not be accepted for a period of at least 6 months
on accounts with more than one returned check within a 12-month period.
INFORMATION
If you question this bill,.please request an explanation from the Customer Service
Division. If you thereafter believe that you have been billed incorrectly, to avoid
discontinuance of service send your payment under protest to the Customer Service
Division with a copy of the bill and a written statement supporting your belief that the bill
is not correct. Such statements regarding disputed gas bills should be made to the
attention of the Gas System Manager. The Manager will review the basis of the billed
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City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
amount and authorize any adjustment required in accordance with his findings. If the
matter is not satisfactorily resolved by the Manager, you may petition the City Council
for final determination. If you need further information, please call the Customer Service
Division at (213) 583- 8811 between the hours of 7:00 a.m. and 5:30 p.m., Monday
through Thursday.
RULES AND REGULATIONS
The City of Vernon Gas Service Rules, under which service is rendered are on file at the
Customer Service Division. If you wish a copy of any information pertaining to your
account, please write to the Customer Service Division.
MEASURES OF CONSUMPTION
Natural gas meters measure cubic feet of natural gas; however billing quantities are
adjusted for the Heating Value of the Gas to yield Therms billed. Rates are stated in
terms of Therms.
C. Final Notice. The following statement will be printed on each final Notice:
This notice includes a late fee. If you question this bill please request an explanation
from the Customer Service Division. If you thereafter believe that you have been billed
incorrectly, to avoid discontinuance of service send your payment under protest to the
Customer Service Division with a copy of the bill and a written statement supporting
your belief that the bill is not correct. Such statements regarding disputed gas bills
should be made to the attention of the Gas System Manager. The Manager will review
the basis of the billed amount and authorize any adjustment required in accordance with
his findings. If the matter is not satisfactorily resolved by the Manager, you may petition
the City Council for final determination. If you need further information, please call the
Customer Service Division at (213) 583-8811 between the hours of 7:00 a.m. and 5:30
p.m., Monday through Thursday.
If a discontinued service is reestablished, a reconnection charge will be assessed.
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City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
Rule No. 6. ESTABLISHMENT AND REESTABLISHMENT OF CREDIT
A. Establishment of Credit. Each applicant, before receiving service, will be required to
make prepayment in accordance with Rule No. 7 or to satisfactorily establish credit.
Credit will be deemed established by one or more of the following means at the sole
discretion of the City:
1. The applicant is the owner with a substantial equity, of value satisfactory to the
City, in the Premises to be served.
2. The applicant furnishes a guarantor, satisfactory to the City, to secure payment of
bills for gas service.
3. The applicant has been a Customer of the City for a similar type of service within
the last two years and during the last twelve consecutive months of that prior
service did not have more than two past due bills and provided that the credit of
the applicants is unimpaired in the opinion of the City.
4. The applicant's credit is otherwise established to the satisfaction of the City.
B. Reestablishment of Credit. An applicant or Customer will be required to make
prepayment in accordance with Rule No. 7 and/or to reestablish credit in accordance with
Rule No. 6 under any of the following conditions:
1. In case applicant previously has been a Customer of the City and services have
been discontinued by the City during the last twelve months because of
nonpayment of bills.
2. In case a Customer has failed to pay bills before they become past due as
prescribed in Rule No. 11-A, and has further failed to pay such bills within two
(2) City working days after presentation of a discontinuance of service notice for
nonpayment of bills. This condition will apply regardless of whether or not
service has been discontinued.
3. In case the conditions of service or basis on which credit was originally
established have, in the opinion of the City, materially changed.
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City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
Rule No. 7 PREPAYMENTS
A. Amount of Prepayment. Prepayment shall be required from any applicant or Customer
which has not established or reestablished credit. The amount of the prepayment shall be
twice the estimated average monthly bill.
B. Return of Prepayment.
When an application for Gas service has been cancelled prior to the establishment
of service, the prepayment will be applied to any charges applicable in accordance
with the Rate Schedules and the applicant will be so advised. The excess portion
of the prepayment will be refunded.
2. When the Customer's credit has been established in accordance with Rule No. 6,
the City will apply the balance of the prepayment as a credit against future bills.
3. Upon discontinuance of Gas service, the City will apply the prepayment to any
outstanding charges and the excess portion of prepayment will be refunded.
Rule No. 8. NOTICES
A. A Notice to a Customer. When a notice from the City to a Customer is required, it will
normally be given in writing; either mailed to the Customer's Mailing Address or
delivered to the Customer's place of business, except that in emergencies the City may
give an oral notice.
l . Final Notice. The "Final Notice" for nonpayment of a delinquent account shall be
sent by first class mail, addressed to the Customer to whom the service is billed,
at least 10 calendar days prior to proposed termination of service.
2. Notice of Call. Notice of discontinuance of service for nonpayment of a
delinquent account shall be given by delivery of a "Notice Call" to the
Customer's place of business at least 48 hours prior to proposed termination of
service.
B. A Notice from the Customer. A notice from a Customer to the City maybe given by
written communication mailed to the Customer Service Division or may be given orally
by the Customer or its authorized agent at the Customer Service Division or may be
given orally by the Customer or its authorized agent at the Customer Service Division
except when written notice is specifically required in the applicable Rate Schedule.
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City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
Rule No. 9 PRESENTATION AND PAYMENT OF BILLS
A. Presentation of Bills.
Billing Period. Bills for gas service will be presented monthly or as otherwise
provided in the applicable Rate Schedules. At the sole discretion of the City, a
Customer may be required to make weekly payments based on estimated usage.
2. Metered Service. Bills for metered service will be based on Meter registrations.
Meters will be read as required for the preparation of regular bills, opening bills,
and closing bills. It may not be possible always to read meters on the same day of
the month, and if a monthly Billing Period contains less than 27 days or more than
33 days, a pro rata computation in the bill will be made.
3. Pro Rata Computation. All opening bills, closing bills, and bills for gas service
presented for periods of less than 27 days or more than 33 days on a monthly
Billing Period will be computed in accordance with the applicable Rate Schedule,
but the size of the energy blocks, and the amount of the Customer, service,
volumetric, or minimum charges, specified therein, will be prorated on the basis
of the ratio of the number of days in the period to the number of days in an
average monthly period, which for this purpose shall be taken as 30 days, or as
otherwise provided in rate schedules. Energy usage (Therms) will not be
prorated.
B. Reading of Separate Meters Not Combined. For the purpose of billing, each Meter
upon the Customer's premises will be considered separately, and the readings of two or
more Meters will not be combined except as follows:
1. Where combinations of Meter readings are specifically provided for in the Rate
Schedule.
2. Where the City's Operating Necessity requires the use of more than one Meter.
C. Payment of Bills. When bills are presented monthly, they will be due and payable on or
before twenty (20) days after the Date of Presentation. When bills are presented weekly,
they will be due and payable on or before five (5) days after the Date of Presentation.
Payment shall be made at the City of Vernon Customer Service Division, 4305 Santa Fe
Avenue, Vernon, CA 90058-1786. A late charge may be imposed at the City's sole
discretion equal to five percent of the unpaid balance, or as revised under Rate Schedule
G-CS.
D. Returned Check Charge. The City will require payment of a charge for any check
returned from the bank unpaid. Payment in lieu of the returned check will be accepted
only in the form of cash, money order, or cashier's check. Personal or business checks
will not be accepted for a period of at least 6 months on accounts with more than one
returned check within a 12-month period. A returned check charge may be imposed at
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City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
the City's sole discretion in amount of $20.00, or as revised under Rate Schedule No. G-
CS.
Rule No. 10 DISPUTED BILLS
A. Request for Billing Review. Any request for review of a bill filed by a Customer shall
be reviewed by a Customer Service Division representative. The review shall include
consideration of whether the Customer should be permitted to amortize the unpaid
balance of his account over a reasonable period of time.
B. Review by Gas System Manager. Any Customer, whose request for review regarding a
bill for gas service has resulted in a determination by the Customer Service Division
representative which is adverse, may have such determination reviewed by the Gas
System Manager of the City of Vernon.
1. To avoid discontinuance of service, the Customer shall pay the amount claimed
by the City to be due. Such payment shall be deemed to be made under protest.
In lieu of such payment, a Customer whose credit has been established pursuant to
Rule No. 6 may request to amortize payments. Approval of such amortized
payments shall be at the sole discretion of the City.
2. Checks or other forms of remittance for such payment under protest shall be
accompanied by a letter of explanation to the Gas System Manager.
3. Upon receipt of the payment under protest and letter of explanation the Manager
will review the basis of the billed amount. After review the Manager may:
a. If special circumstances exist, waive returned check charge, reconnect
charge, and late charge, or
b. Recommend any adjustment to gas charges as determined by the review.
Any recommendation for a credit or refund must be approved by the City
Administrator, and, if the amount exceeds $10,000, City Council approval
will also be required.
4. If the matter is not satisfactorily resolved by the Manager, the Customer may
petition the City Council for a final decision.
C. Discontinuance of Service. Failure of the Customer to make payment under protest of
the disputed bill prior to the expiration date of a 48 hour Notice of Call will warrant
discontinuance of service without further notice.
D. Additional Bills during Review. If before completion of the City Council's review,
additional bills become due which the Customer wishes to dispute, the additional
amounts claimed by the City to be due for such additional bills shall be paid before they
become past due and failure to do so will warrant discontinuance of service in accordance
with Rule No. 11.
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City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
Rule No. 11 DISCONTINUANCE AND RESTORATION OF SERVICE
A. Past Due Bills. When bills are presented monthly, they will be considered past due if
payment is not received within 20 days after the Date of Presentation. When bills are
presented weekly, they will be considered past due if payment is not received within S
days after the Date of Presentation.
B. Nonpayment of Bills.
1. A Customer's service may be discontinued for nonpayment of a bill for service
previously rendered by the City provided such bill is not paid within 48 hours
after a notice of discontinuance of service by delivery of a "Notice of Call."
2. If a Customer is receiving more than one service, any or all services may be
discontinued when any service, regardless of location, is discontinued for
nonpayment
3. Under no circumstances may service be discontinued for nonpayment of a bill to
correct previously billed incorrect charges for a period in excess of the preceding
three months, unless such incorrect charges have resulted from the Customer not
abiding by these Rules.
4. Service will not be discontinued on any Saturday, Sunday or legal holiday for
delinquency in payment of a bill for gas service.
C. Violations or unsafe Equipment
l . The city may refuse or discontinue service to a Customer if the City determines:
a. That any part of the Customer's piping or other equipment, or the use
thereof, is unsafe or in violation of applicable laws, ordinances, rules or
regulations of public authorities.
b. That any condition existing upon the Customer's Premises endangers the
City's service facilities.
2. Such discontinuance shall continue until piping, equipment, or use has been put in
a safe condition or the violation remedied. In the event of a dangerous condition,
the City may without giving prior notice immediately discontinue service to any
Premises.
3. The city does not assume any responsibility of inspecting or repairing the
Customer's piping or other equipment or any part thereof and assumes no liability
therefore.
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City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
D. Service Detrimental to Other Customers. The City will not provide service for
equipment, the operation of which will be detrimental to the service of the City's other
Customers, and will discontinue gas service to any Customer which continues to operate
such equipment after having been given notice to cease by the City.
E. Fraud. The City may refuse or discontinue service immediately if the acts of the
Customer or the conditions upon its Premises are such as to indicate intent to defraud the
City.
F. Restoration of Service. Before restoring service that has been discontinued for
nonpayment of a bill or fora violation:
1. The City may require payment of a reconnection charge, as defined in Rate
Schedule G-CS. In case the Customer requests that such service be reconnected
on the day of its request or outside of regular business hours, the reconnection
charge may be increased to cover the cost thereof.
2. The Customer will be required to reestablish credit in accordance with Rule No. 6
or make prepayment in accordance with Rule No. 7.
3. The Customer will be required to pay all delinquent bills.
Rule No.12. RATE AND OPTIONAL RATES
A. Effective Rates. The rates charged by the City of natural gas service are those approved
by resolution of the City Council. A copy of complete Rate Schedules will be maintained for
public inspection at the City Clerk's Office.
B. Optional Rates. If there are two or more Rate Schedules or optional provisions
applicable to the class of service requested by the applicant, the City will call applicant's
attention thereto at the time application is made, and the applicant must designate which Rate
Schedule of optional provision is desired.
C. Change in Equipment of Operation. When the Customer, in accordance with Section
C of Rule No. 3, notifies the City of any material change in the size, character, or extent of its
equipment or operations the City will, within a reasonable time, advise the Customer of the
resulting rate options. In the absence of the notification provided for in Section C of Rule No. 3,
the City assumes no responsibility for advising the Customer of lower optional rates under other
existing Rate Schedules or optional provisions available as a result of the Customer's changes in
equipment of operations.
D. New or Revised Rates. If new or revised Rate Schedules are established, the City will,
within a reasonable time, bring them to the attention of the Customers which may be affected.
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City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
E. Change of Rate Schedule.
1. A change to another applicable Rate Schedule or optional provision will be made only
when a Customer elects in writing to make such change.
2. If a Customer so elects, the change to another Rate Schedule will be made provided:
a. A change of Rate Schedule has not been made during the past twelve-month
period; or
b. The change of Rate Schedule is made to, or from, a new or revised Rate Schedule;
or
There has been a change in the Customer's equipment or operations for that
service which, in the opinion of the City, justifies the change of Rate Schedule.
3. The change of Rate Schedule will become effective for the billing period during which
the Customer has requested such change.
4. City of Vernon natural gas rates schedules are applicable only for service supplied
entirely by the City without interconnection with any other source of natural gas.
Rule No.13 SHORTAGE OF SUPPLY AND INTERRUPTION OF SERVICE
A. Shortage and Interruption. The City does not guarantee a sufficient supply of gas or
freedom from interruption. The City will not be liable for interruption or shortage of
supply, nor for any loss or damage occasioned thereby.
B. Temporary Suspension for Repairs. Whenever the City finds it necessary to make
repairs or improvements to its gas system, it will have the right to suspend temporarily
the delivery of gas. In such cases reasonable notice will be given to the Customers. To
the extent practicable such repairs or improvements will be performed expeditiously and
with as little inconveniences to the Customers as possible.
Whenever, in the operation of the City's gas system interruption in the delivery of gas to
Customers results from or is occasioned by any other cause, notice of such interruption
will not be given to the Customers. The City will exercise reasonable diligence to restore
delivery of gas energy.
C. Apportionment of Supply During Time of Shortage. If a shortage of supply of gas
occurs, the City will apportion its available supply among its Customers as consistent
with SoCalGas Rule No. 23.
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City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
Rule No.14. SERVICE CONNECTIONS AND FACILITIES ON CUSTOMER'S
PREMISES
A. General. The City will construct, own, operate and maintain natural gas lines only along
public streets, roads and highways which the City has the legal right to occupy, and on
public lands and private property across which rights of way or easements satisfactory to
the City may be obtained at the Customer's cost and without cost or condemnation by the
City. Upon request by the City, the applicant shall provide such rights of way or
easements.
B. Customer to Pay Cost of Connection. Service connections shall be paid for by each
Customer desiring service and shall include:
1. All trenching, boring, pipe, tapping, backfill, and surface restoration, necessary to
reach the gas meter location at the Customer's Premises
2. An appropriately sized natural gas meter and regulator, to be owned and
maintained by City of Vernon.
Customer may request City of Vernon to conduct additional work at Customer's expense
to connect customer's side of gas piping to City of Vernon meter.
C. Meter Installations. The Customer shall provide an approved location for the Meter or
Meters and associated equipment on the Premises which at all times shall be accessible
for inspection, reading, and testing. Customer may be required to provide, at Customer's
expense, a phone line terminating at the gas meter for the purpose of City of Vernon
telephonically communicating with the meter.
The Customer shall, at its own expense, provide a new and approved location whenever
the existing location becomes inaccessible for inspecting, reading, or testing.
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City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
Rule No.15. METER TEST AND ADJUSTMENT OF BILLS FOR METER ERROR
A. Tests.
1. Prior to Installation. Every Meter will be tested at or prior to the time of
installation, and no Meter will be placed in service if found to register more than
1 % fast or 1 % slow.
2. On Customer Request. A Customer may, on notice of not less than one week,
require the City to test the Meter for its service. A charge will be made for such a
test in accordance with Rate Schedule G-CS, but, this amount will be waived if
the Meter is found to register more than 2% fast or 2% slow.
A Customer shall have the right to require the City to conduct the test in its
presence or in the presence of its expert or other appointed representative. The
results of the test will be furnished to the Customer within a reasonable time after
completion of the test.
B. Adjustment of Bills for Meter Error.
Fast Meters. When, upon test, any meter is found to be registering more than 2%
fast, the City will refund to the Customer the amount of the overcharge based on
corrected Meter readings for the preceding six months, subject to the provisions
of paragraph 4 hereof.
2. Slow Meters. When, upon test, any meter is found to be registering more than 2%
slow, the City may bill the Customer for the amount of the undercharge based on
corrected meter readings for the preceding six months, subject to the provisions of
paragraph 4 hereof.
3. Nonre istering Meters. When, upon test, any Meter is found to be nonregistering,
the City may bill the Customer for the estimated amount of gas consumed but not
registered for a period of three months, subject to the provisions of paragraph 4
hereof.
Bills for this purpose will be estimated from the Customer's prior use, the
Customer's subsequent use correctly Metered, the City's experience with other
Customers of the same class, and/or the general characteristics of the Customer's
operations.
4. General. When it is found that the error in a Meter is due to causes the date of
which can be reliably established, the overcharge or the undercharge will be
computed back to but not beyond that date, provided, however, that in no case
will a bill for undercharge on domestic service schedules be rendered for a period
exceeding three months. When a slow or nonregistering meter has been caused
Page 18 of 19
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
by an action of the Customer, its agents, employees, or licensees, the above time
limitations shall not apply.
C. Replacement of Meters.
Any Meter damaged or destroyed by the Customer, its agents, employees, clients,
or visitors shall be replaced by the City at the Customer's expense.
2. Any defective Meter, other that the above, shall be replaced by the City at its
expense.
Rule No.16. SUPPLY TO SEPARATE PREMISES AND USE BY OTHERS
A. Separate Metering. Separate Premises will not be supplied through the same Meter,
except as may be specifically provided for in the applicable Rate Schedule.
B. Other uses or Premises. Gas received from the City shall not be used by the Customer
upon other Premises or for other purposes than those specified in its application or in the
applicable Rate Schedule.
C. Use by Others. A Customer shall not charge for gas received from the City and used by
another person, except:
If the charge to tenants is absorbed in the rental for the Premises or space
occupied; or
2. If the Customer is the owner, lessee, or operator of a multiple -occupancy
Premises and provides submeters for the gas used by tenants at the same rates that
the City would charge for the service if supplied directly. In such cases, the
Customer shall furnish, install, maintain, and test the submeters.
Page 19 of 19
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
EXHIBIT
CITY OF VERNON
NATURAL GAS TRANSPORTATION AGREEMENT
This Agreement is entered into this day of , by and between the
CITY OF VERNON, hereafter referred to as "Vernon" or "City" or "COV" and
, a , hereafter referred to as "Customer."
NOW THEREFORE, in consideration of the mutual undertakings set forth below, the parties
agree as follows:
SECTION 1- TERM
This Agreement shall be effective the latter of 1) when COV is first able to physically connect to
and deliver natural gas service to Customer's facility, or 2) and
may terminate not sooner than midnight on At the end of the initial term,
this Agreement shall continue on a month to month basis unless terminated by 30 day written
notice from one party to the other.
This Agreement shall be subject to prior termination pursuant to (or consistent with) any final
order of a federal, state or local government entity having jurisdiction over this arrangement or
the parties herein by mutual agreement. Such termination shall not relieve either party of the
obligation to discharge any financial obligations arising hereunder prior to or as a result of
termination or to correct any then -existing gas imbalance between deliveries and receipts arising
during the term hereof (to the extent not prohibited by such final order).
SECTION 2 - RATES
Customer requests and the City will provide gas service(s) in accordance with Schedule G-3
(Large Commercial Gas Transportation) and City gas rules and regulations. Customer has
reviewed and inspected the applicable City rates, rules, and regulations for gas service(s) and
agrees to comply therewith. This Agreement shall at all times be subject to the rules and
regulations of the City of Vernon, which may be changed or modified by the City Council from
time to time in the exercise of its jurisdiction.
Page 1 of 6
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
SECTION 3 - SCOPE
The City of Vernon, or an authorized agent in service to Vernon, shall accept into the SoCalGas
system Gas nominated on behalf of Customer. Customer gas shall be transported on SoCalGas
using firm service under Vernon's wholesale transportation agreement with SoCalGas. The City
shall use its own transmission and/or distribution system to provide delivery to Customer within
the City of Vernon. The Gas delivered to the Customer will not necessarily be the Gas that the
Third -Party Supplier delivered into SoCalGas for delivery to City of Vernon, but will be
equivalent in value on a Btu basis.
The terms and conditions of the transportation service to be provided by City to Customer shall
be as set forth in the applicable rate schedules of the City of Vernon.
Customer shall provide City its monthly and annual expected natural gas consumption, as well as
its maximum daily contract quantity based on its currently -installed gas -burning equipment
(Exhibit A, attached hereto). Customer shall revise these quantities whenever it experiences
significant changes in its expected gas usage.
SECTION 4 - FINANCIAL OBLIGATION
A. Monthly Billing Statement. Each month on or before the twentieth (20th) day of the month
Vernon shall send Customer an invoice for the net charges payable hereunder for the preceding
month. Such charges shall be based upon this Agreement and the appropriate prevailing Vernon
Rate Schedule. All net charges for gas delivered to Customer shall be billed to Customer at the
billing address designated hereunder.
B. Payment. Customer payments must be received no later than (20) days of receipt by
customer. Failure to timely pay may result in immediate termination of gas service to Customer.
Customer may, at City of Vernon's sole discretion, be charged a late charge on any delinquent or
unpaid balance, according to the then prevailing Vernon Municipal Code applicable ordinances
and/or resolutions.
C. In -Lieu of Tax and Franchise Fee: The base rates and charges have been increased by 3
percent to reflect payments in -lieu of tax and franchise payments.
D. Adjustments. All gas quantities transported and/or delivered to Vernon under this Agreement
shall be billed based on the best information available to Vernon at the time of billing, but shall
be subject to adjustment based on subsequent adjustments.
Page 2 of 6
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
SECTION 5 - RELATED OBLIGATIONS
A. Title/Indemnity. Customer warrants title to all gas delivered to Vernon on behalf of
Customer. Customer shall indemnify and hold harmless Vernon, agents serving Vernon, and
SoCalGas from and against any and all claims, actions, liabilities, taxes, royalties, liens, charges,
damages or costs (including reasonable attorneys' fees for in-house or outside counsel) related to
gas delivered or failed to be delivered to the allocation points which have been nominated and
confirmed with Vernon and SoCalGas hereunder, and arising out of or on account of this
Agreement in general, except for claims arising out of the gross negligence of Vernon.
B. Replacement of Gas. Vernon shall have no obligation to notify Customer or to replace or
substitute for Customer any quantities of gas not delivered to SoCalGas or accepted by SoCalGas
in connection with this Agreement,
C. Assignment of Rights and Obligations. The rights and obligations under this Agreement
shall not be assigned by either party without the prior written consent of the other party, which
consent may be withheld at the sole discretion of Vernon.
D. Customer Responsibility. Vernon shall bill and Customer shall pay any costs incurred by
Vernon because of any failure by third parties, acting as agents for Customer, to perform their
obligations related to this Agreement (including reasonable attorneys' fees whether for in-house
or outside counsel). Vernon shall bill and Customer shall pay any and all penalties, taxes, or
other related or similar charges or fees incurred by Vernon or SoCalGas under an interstate or
intrastate supplier contract as a result of this Agreement and accommodating transportation
service shall be paid by the Customer. Under no circumstances shall Vernon be liable to any
third -party producer, marketer, broker, or other supplier of gas under this Agreement for any
portion of the purchase price for the Customer's natural gas supplies, including but not limited to
the gas commodity, transportation, tariffs, taxes, fees, and surcharges.
E. Re ug_ latory. This Agreement, including but not limited to Vernon's Natural Gas Rates
Schedules and Rules, are subject to revision and modification as a result of legislative or
regulatory action, including CPUC and/or Federal Energy Regulatory Commission proceedings
and orders.
The rates and terms of firm transmission service on the SoCalGas system are now under review
at the CPUC in Application No. A. 04-12-004 concerning the establishment of firm access rights
(FARs) on the SoCalGas system. Should the CPUC create FARs on the SoCalGas system,
Customer and the City of Vernon shall cooperate to ensure that the City of Vernon has access to
the FARs that may be associated with the Customer's historical use of the SoCalGas system.
Such cooperation may include the assignment of the Customer's FARs to the City of Vernon.
F. Consequential Damages. Except as provided herein, neither party shall be assessed any
special, punitive, consequential, incidental, or indirect damages, whether in contract or tort, for
any actions or inactions related to this Agreement or the delivery or non -delivery of gas,
curtailment or transportation thereof.
Page 3 of 6
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
SECTION 6 — NOTICES, BILLING, CUSTOMER CONTACT
Any notice, request, demand, or statement provided for in this Agreement shall be in writing and
shall be sent to the parties hereto at the following addresses, and shall be effective upon receipt:
Notice, correspondence, and statements:
Customer:
Attn:
Office Phone
Fax
Operations and Nominations Contact
Customer:
Name
Office phone
Cell phone
Fax
Email
Billing:
Customer:
Attn:
Office Phone
Fax
Vernon:
Attn: Gas System Manager
City of Vernon
4305 Santa Fe Avenue
City of Vernon, CA 90058
Phone (323) 583-8811
Fax (323) 587-7596
Vernon:
(Same as above)
SECTION 7 - JURISDICTION
This Agreement shall be governed and construed in accordance with the laws of the State of
California.
Page 4 of 6
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
SECTION 8 - CAPTIONS AND ORGANIZATION
The various headings and numbers herein and the groupings of the provisions of this Agreement
are for the purpose of convenience only and shall not be considered a part hereof, and shall have
no effect on the construction or interpretation of any part of this Agreement.
SECTION 9 ENTIRE AGREEMENT
This Agreement in conjunction with Vernon's Gas Rates and Rules set forth the entire
understanding of the parties and supersedes any prior understandings or discussions (whether
written or oral) and incorporated herein by reference all Vernon Municipal Codes, ordinances
and resolutions existing or as amended from time to time. In the event of a conflict between this
Agreement and Vernon's Gas Rates and Rules, the language of this Agreement shall prevail.
This Agreement shall only be amended by an instrument in writing properly executed by both
parties or as superseded by changes in the City of Vernon Municipal Code, resolutions,
ordinances, or other applicable rules and regulations.
IN WITNESS WHEREOF, the authorized representatives of the parties have executed this
agreement in duplicate originals.
CUSTOMER:
Customer Name
Signed _
Printed
Title
CITY OF VERNON:
Signed
Printed
Title
Page 5 of 6
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
NATURAL GAS TRANSPORTATION AGREEMENT
EXHIBIT A
Location name
Location address
Contact person
Office phone
Cell phone
Emergency phone
Natural gas supplier
Supplier contact
Supplier phone
Estimated Monthly Quantities (Therms):
January July
February August
March September
April October
May November
June December
Estimated Annual Quantity Therms
Regular days of operation:
M T W Th F
Page 6 of 6
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
Sat Sun_