Resolution No. 9240t s r
f
1 RESOLUTION NO. 9240
2
3 A'RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON AMENDING RATE SCHEDULE NOS. G-2, G-3, G-4
4 AND G-5 REGARDING NATURAL GAS RATES TO BE CHARGED
5 FOR GAS DISTRIBUTED AND SUPPLIED BY THE CITY WITHIN
ITS BOUNDARIES AND APPROVING AND ADOPTING AN
6 AMENDED FORM NATURAL GAS TRANSPORTATION AGREEMENT
7
8 WHEREAS, the City Council of the City of Vernon adopted
9 Ordinance No. 1122 on September 5, 2006, providing that rates to be
10 charged for natural gas distributed and supplied by the City within its
11 boundaries shall be set by resolution; and
12 WHEREAS, on October 6, 2006, the City Council of the City of
13 Vernon adopted Resolution No. 9134 approving, in part, Rate Schedule
14 Nos. G-CS, G-1, G-2, G-3, G-4 and G-5 as the City's natural gas rates
15 for natural gas service and approving a form Natural Gas Transportation
16 Agreement for use by the Vernon Gas Municipal Utility Department and
17 qualified customers taking service under Rate Schedule No. G-3; and
18 WHEREAS, the City of Vernon is currently purchasing natural
19 gas transmission service from the Southern California Gas Company
20 ("SoCalGas") under Wholesale Natural Gas Service Rate Schedule No. GW-
21 VRN permitted by the California Public Utilities Commission in Docket
22 Nos. 00-04-060, 05-12-044 and 01-12-018; and
23 WHEREAS, SoCalGas recently made annual rate adjustments and
24 reduced rates under Rate Schedule No. GW-VRN; and
25 WHEREAS, the City Council of the City of Vernon desires to
26 amend Rate Schedule Nos. G-3, G-4 and G-5 to pass the wholesale rate
27 reductions through to customers taking service under said Rate
28 Schedules and to amend Rate Schedule No. G-2 to provide for a second
} t
1 tier to take advantage of rate adjustments by SoCalGas; and
2 WHEREAS, the proposed amended natural gas rates are to
3 effective on January 1, 2007; and
4 WHEREAS, the City Council of the City of Vernon held a public
5 hearing on February 20, 2007, to amend natural gas rates in Schedule
6 Nos. G-2, G-3, G-4 and G-5 and to amend the form Natural Gas
7 Transportation Agreement in accordance with the recommendations of the
8 Director of Light & Power; and
9 WHEREAS, the City Council has heard and considered all
10 evidence, both written and oral, presented in consideration of the
11 proposed amended Natural Gas Rate Schedules and amended form Natural
12 Gas Transportation Agreement.
13 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
14 CITY OF VERNON AS FOLLOWS:
15 SECTION 1: The City Council of the City of Vernon hereby
16 finds and determines that the recitals contained hereinabove are true
17 and correct.
18 SECTION 2: The City Council of the City of Vernon further
19 finds that all persons have had the opportunity to be heard or to file
20 written comments to the proposed amended Natural Gas Rate Schedules
21 and amended form Natural Gas Transportation Agreement and after due
22 consideration of all the evidence submitted at the public hearing
23 determines that there are compelling reasons to justify the amended
24 Natural Gas Rate Schedules and amended form Natural Gas Transportation
25 Agreement.
26 SECTION 3: The City Council of the City of Vernon hereby
27 adopts the rates, terms and conditions set forth in amended Rate
28 Schedule Nos. G-2, G-3, G-4 and G-5 as the City's rates, terms and
2 -
r
i
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16.
17
18
19
20
21
22
23
24
25
26
27
28
conditions for the distribution of natural gas supplied by the City of
Vernon to be effective January 1, 2007, copies of which are attached
hereto as Exhibit A and incorporated by reference.
SECTION 4: The City Council of the City of Vernon hereby
approves and adopts the amended form Natural Gas Transportation
Agreement attached hereto as Exhibit B 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 Administrator, or his designee.
SECTION 5: The City Council of the City of Vernon hereby
authorizes and empowers the Acting City Administrator, or his
designee, to execute individual copies of the amended form Natural Gas
Transportation Agreement on an as -needed basis and to make whatever
nonsubstantive and administrative changes, upon advice of counsel, to
the amended 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 Administrator, or his
designee, executing the Agreement may approve, is conclusively
evidenced by the execution and delivery of the Agreement.
SECTION 6: Any provision contained in Resolution No. 9134
not consistent with or in conflict with this resolution are hereby
repealed. In all other respects, Resolution No. 9134 shall remain in
full force and effect.
/ / /
- 3 -
I
E
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
SECTION 7: The Acting City Clerk of the City of Vernon
shall certify to the passage of this resolution, and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 20th day of February, 2007.
TTEST:
MANUELA GIRON
Acting City Clerk
HILARIO GONZAL S, Mayor Pro-Tem
- 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
STATE OF CALIFORNIA )
ss
COUNTY OF LOS ANGELES )
I, MANUELA GIRON, Acting City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution No.
9240, was duly adopted by the City Council of the City of Vernon at a
regular meeting of the City Council duly held on Tuesday, February 20
2007, and thereafter was duly signed by the Mayor Pro-Tem of the City
of Vernon.
(SEAL)
4� &�Oc
ANUELA GIRON
Acting City Clerk
- 5 -
EXHIBIT
e
CITY OF VERNON
NATURAL GAS DEPARTMENT
Schedule G-2
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'& natural
gas system. This schedule is also applicable to all other non-residential customers that have elected
Core Service.
RATES
Monthly Service Charge: $50
Monthly Transportation Charges: Rate, in Cents per Therm
Tier I 0 — 4,187 Therms 15.000 (N)
Tier II Over 4,187 Therms 10.000 (R)
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 to 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.
Pagel of 2
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06, First revision , 2007, Effective l/l/07
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 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, First revision , 2007, Effective l/l/07
CITY OF VERNON
NATURAL GAS 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:
Rate, in Cents per Therm
Tier I
0 — 20,833 Therms
12.061
(R)
Tier II
20,834 — 83,333 Therms
5.840
(R)
Tier III
Over 83,333 Therms
4.472
(R)
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.
Pagel of 3
City of Vernon Council Resolution 9134, Ordinance 1122; effective 10/6/06, First revision _, 2007. Effective
1/1/07.
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, First revision _, 2007. Effective
1/l/07.
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, First revision _, 2007. Effective
1/l/07.
CITY OF VERNON
NATURAL GAS 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 12.061 (R)
Tier II 20,834 — 83,333 Therms 5.840 (R)
Tier III Over 83,333 Therms 4.472 (R)
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 to
maintain a zero sum gain to COV for gas sales.
Commodity Administrative Fee:
Pagel of 2
0.30 cents per Therm
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06, First revision , Effective 1/l/07.
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
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, First revision , Effective 1/1/07.
CITY OF VERNON
NATURAL GAS 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: 4.026 Cents per Therm (R)
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. First revision xx/xx/07. Effective
1/l/07.
(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
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. First revision xx/xx/07. Effective
1/1/07.
(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. First revision xx/xx/07. Effective
1/1/07.
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. Revised February 20, 2007
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 consumption 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. Revised February 20, 2007
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. Regulatory. 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. Revised February 20, 2007
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: Vernon:
Attn:
Office Phone
Fax
Operations and Nominations Contact
Customer:
Name
Office phone
Cell phone
Fax
Email
Billing:
Customer:
Attn:
Office Phone
Fax
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. Revised February 20, 2007
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. Revised February 20, 2007
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: February 22, 2007
TO: Donal O'Callaghan, Director of Light & Power
FROM. Nelly Giron, Acting City Clerk
RE: Resolution No. 9240 - A Resolution of the City Council
of the City of Vernon Amending Rate Schedule Nos. G-2,
G-3, G-4 and G-5 Regarding Natural Gas Rates to be
Charged for Gas Distributed and Supplied by the City
Within its Boundaries and Approving and Adopting an
Amended Form Natural Gas Transportation Agreement
Transmitted herewith is a signed copy of Resolution No. 9240,
referenced above, which was approved by City Council on February
20, 2007.
NG:dr
c: Martha Valenzuela
Resolution No. 9240
cc
Juoy
INTEROFFICE MEMORANDUM L1IS/-1
Light & Power Department
DATE: February 8, 2007
TO: Eric Fresch, Acting City Administrator
FROM: Donal O'Callaghan, Director of Light & Power
SUBJECT: Natural Gas Tariff Changes (DES q 2y 0
The purpose of this memo is to recommend that COV reduce its large -customer natural gas transportation rates by
the same amount COV's wholesale rate has recently been reduced by SoCalGas. Additionally, the G-2 rate structure
for small commercial bundled service customers is recommended to be modified and lowered to make it more
economically attractive. The fiscal impact is negligible to the original business plan submitted to you July 31, 2006.
Effective January 1, 2007, SoCalGas lowered the wholesale gas transportation rate charged COV one-half cent per
Therm. This was the result of various combined annual rate adjustments by SoCalGas. Similarly, SoCalGas
reduced industrial customer rates as well. For a larger customer, such as Owens-Illinois, the average rate was
reduced one cent per Therm, twice the reduction received by COV. The reason for the difference in reductions is
surcharges paid by SoCalGas industrial customers that do not apply to COV's wholesale rate. Rate schedules
affected, and the old and new proposed rates are attached.
The G-2 rate applies to small "core" customers that take combined transportation and commodity service. The
original COV G-2 rate is flat at $0.15 per Therm, while the SoCalGas rate is tiered, first higher than $0.15 then
decreasing below $0.15 with larger volumes. The result, under COV's initially current rates, is that some potential
customers would experience negative savings at higher volumes, a problem which is fixed here. The proposed,
revised G-2 rates are set such that some customers eligible for these rates may be attracted to service from COV.
Comparison of the old G-2 rate and new are also shown on the attachment.
A minor correction to the language of the transportation agreement is also recommended. The term "maximum daily
contract quantity" has been deleted from Section 3, and replaced with "maximum daily consumption quantity." In
conjunction, a space to write in maximum daily consumption quantity has been added to Exhibit A of the
transportation agreement.
I recommend moving forward with this matter in order to continue to attract customers to our new gas system, and to
reinforce the fact that we are operating the system for our customers benefit.
Should you require any further information please do not hesitate to contact me.
DO:rmt
cc: L & P Document Control
Attachment to City Council Memorandum dated February 8, 2007
Proposed COV Revised Natural Gas Rates Effective 1/1/07
Cents per Therm
Rate
Rate Class
Old
Change
New
G-1
Residential
25.000
0.000
25.000
G-2
Small Commercial
Tier 1
15.000
0.000
15.000
Tier 2 ( > 4,167)
15.000
-5.000
10.000
G-3/G-4
Lg Com. Transport
Tier 1
12.561
-0.500
12.061
Tier 2
6.340
-0.500
5.840
Tier 3
4.972
-0.500
4.472
G-5
Elec. Gen. Trans.
4.526
-0.500
4.026
GW-VRN
Transmission
2.828
-0.072
2.756
ITCS
0.395
-0.428
-0.033
G-SRF (CPUC)
0.076
0.000
0.076
3.299
-0.500
2.799
CITY OF VERNON
NATURAL GAS DEPARTMENT
Schedule G-2
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: $50
Monthly Transportation Charges: Rate, in Cents per Therm
Tier I 0 — 4,187 Therms 15.000 (N)
Tier II Over 4,187 Therms 10.000 (R)
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 to 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.
Page 1 of 2
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06, First revision , 2007, Effective l/1/07
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 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, First revision , 2007, Effective 1/1/07
CITY OF VERNON
NATURAL GAS 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
12.061 (R)
5.840 (R)
4.472 (R)
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, First revision _, 2007. Effective
1/l/07.
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, First revision _, 2007. Effective
1/1/07.
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, First revision _, 2007. Effective
1/l/07.
CITY OF VERNON
NATURAL GAS DEPARTMENT
Schedule G-4
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 12.061 (R)
Tier II 20,834 — 83,333 Therms 5.840 (R)
Tier III Over 83,333 Therms 4.472 (R)
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 to
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, First revision , Effective 1/1/07.
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
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.
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, First revision , Effective 1/l/07.
CITY OF VERNON
NATURAL GAS 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: 4.026 Cents per Therm (R)
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. First revision xx/xx/07. Effective
i/l/07.
(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
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. First revision xx/xx/07. Effective
1/l/07.
(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. First revision xx/xx/07. Effective
1/l/07.
a
$ / Therm
0 0 0 0 o O o o O O O
O O O O O -A -A � N
° CD N -Ph. 0) 00 O N � CD 00 O
,o
'0
S °
00
72 °O
00
76, °O
00
200 %
-O
2Q0 °O
10
°o
i9oo
0 °0
-0
a °O
610
-0
'00
� o
00
00
CD 0
SRO 0°
q► 100
3 SSO O
000 °O
10
0- °0
1O
0- %
�� 0°0
O
A O00
00
cp00 °O
CQQ°O O
I0
°O
SS0
9210°O
00
06, °O
O
-O
'O00 °O
'00
0
�
�
I
Cl)
m m m 0
:3 =3 =3 0 n
0 0 0 v w
0 =3 5 5
D ai
0 p can
D
m o
CDm
i
m co Q-
.� cu
(D y
0 0 0 0 0 0 0 0
"0 0
6 O°O
90 °O
10
7'a° 00
10,
0
10
�cPO %
2�oO
�sr0 °O
2�10
0 °0
,% 0°O
10
C1,?0 00
06,°°O
9 °°O
10
°O
stSO O°
10
°° °°
3 `s7p °0
M
a sg O°0
10
3 s�0 00
rt 60O °0
3 6,�� 00
06 O0
60 O00
10,
0
O
�S 000
O
%'°00
O
OHO O°
cPQO 00
10
(9 °O
10
10
90O °O
'% OO
96, °00
O
,% °°O
'00
O
Now w go
01
o�
00/
3 °w
i
Opp
o
op
/0
i
i
N
C) X
W
2 m
3 0
O
C
CCDD
cn
O O
3 3
CD
w
D
(Q
N
0
PO
o�
M
O
c
O
a
CD
M
cwr+)
�f
y
.M.
CD
N
O
0
i
// MAi
to
s■
$ per Month
69
N
N
W
w
w
4A
N
N
N
Ul
,l
O
N
U7
:I
O
N
U7
:q
O
Efl
O
O
O
O
O
O
O
O
O
O
O
O
CD
Cl
O
O
CD
O
O
O
O
O
CD
O
°
AD
00
& °
00
j;P0 °O
•O
76,0 °O
1O
,O0 %
1O
2Q° °O
��o °o
.0
1�;P0 °°
.0
L? °O
.Q
QOQ °O
.0
srQO °O
1.0
3 °o �o
0
10
co S 00
s�Q00
6,
°o
0 G0 °O
s 10
OR O
-o
o°O °o
10
00
�6, °O
00
°O
C9,
•O
OQQ no
.0
CQ6O °O
1.O
OHO °O
10
Q °O
•O
70QQ 00
'00
O
oCD
0a
O 0
3 w
o v+
N
Pm
x
O W
CD O N
O
n
c
V)
0
3
cu
co
I
<
0
o
oCD
0
7
O
0 N
O
v
cfl
r�
V
40
C
O
ic
ON
4A
+o
O
00000000000000+_000000000000000.0000000
O
b o
o b
b
00000...
0000
o
00
C
0 0
O O
0 0
O O
0 O
O O
O O
O O
o 0
O ...
0 0
0 0
O O
0 0
O O
0 0
O O
0 0
O O
0 0
O
0 0
O O
0 0
O O
0 0
O O
0 0
O
0 0
O O
0 0
O O
0 0
O O
0 0
O O
0 0
O O
0 0 0
O O O
0 0
O O
0 0
O O
0 0
O O
0 0
O O
0 0
O O
0 0 O
O O O
C n W
m W
V p
((((��TT
O
�p
pp��
O�T�
((,,JJ
p_�
O_�
pp��
O O
Q Q
O O
o O
O p
O O
O
p o
O O
O O
O o
O O
O O
p p
O O
O O
p p
O 0
O OO
p p
0 0
0
�p�p 0
O
0 0
0 0
O O
0 0
�p pp
0 0
0 0
O O
0 0
0 0
O 0
0
pppp
0
0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 O
0 O S.T
S
O
00
O O
�p�p
0
O S
0 0
O OO
0 0
O
0 0
O O O
pppp
o O
OC1
0
O O
0
0
0
O
HIMIII
00.
0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 p
0 0
0 0
0 0
0 0
0 0
0
0
0 0
0 0 pp
0 0
0 0
N
0 0
NNN
0 0
NN
0 0
NNNNN
0 W
0 O
G O
O O
O O
O O
C C
O O
O O
O O
NNNNNNNN
O O
O O
O O
O O
O G
N N
O O
N.
Abppp9p
AAAAA
AAAAAAAAAAAAAAAAAAAAAtOOJtOODfOfOtTNOiU(TN
VVi fVT
(JTN
NU
NNtVT
GVT
VViNN
OVi
N NNOVi
(VT VJi
(JT (JTNNNNOViN
(Vl �(Jl
(JTN
NtJT
N
OOOOOO
AAAAA
W
22
6T
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N.N
N A
A A
A A
A A
ANp
NW NW
NW p Np W
O UO
W OD
W OD
W W
W W
W W
W W
W W
W W
W W
W W
W W
CD W
W W
0) W
W W
W W
W W
W W
W W
W W
W W GT
N N
N NNNNNNNNNN
N N
N N
N N
N N
N N
+
N N
+ +
N N
+ +
N N
+
N N
+ +
N N
+ +
N N
+ +
N N
+ +
N N
+ +
N N
+ +
N N
+ +
N N
+ +
N N
+ +
N N
+
N N
+ +
N N N
+ +
H N
N
N
N N
N N
NNN
N N
Q y
tO
tp ...
OD
V W
01010NN�tt
(WWT
A A(W�T(pW(p�T
W WpN11N
++OOtO
fO OD
OD 00��(ppn
W
m N
W000f�y�AppO
�tppO
�pJ�ppp��JJ
A
(O,,JJ�O�CTAAA
pAA
O
A V
A J
m N
A V
m N
A v
m N
A V
S N
A V
f O N
J
t O N
A V
m N
A V
tA0 N
A J
m N
A J A
fV0 A
O O
m A
O O
m A
O O
fp0 W
O O
O
O O
t O W
O O O
f� qmq
O D— p
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O O
00000000000
W W
W W
W W
W A
AAA
ODAAAAAAAAAAAAA.A
A
p o
p o
p p
p p
AfpT
(pT
(pT tpT
(pT tpliN
NOOim
p
SO>OOi
00i OJ
OOO��S�
SRO+N
W
W Ci
W W
W OmmmO
00
++mom
CCGGGGJJ111I
OOfT
tOA
{p
(pp(�T��
(O(,,JJJ
�Op�
p
�pp�
+fWT
m(T
�OWD
W
V
M.
OT
W V
O A+mN
V
AAOVD
O�i
W ATNTA��OAOlWp
A OOi
W A fNp
fp W
(TN
A A
N +fpO
NA tND
fO T
0 0
OOOCOOO((pOp,..pp��
0 0
0 0
0 0
0 0
0 0
0 0
O
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0 0
00000000
0 0
0 0
0 0
0 pp
0.0ow
O
O O 0
0O OOOC
0'a yA
9
QWQ� m
W W
W W
W
(pOO(,��ppG.Q
W
W W
W WWOO
(pa(p,uD
pOD.
pWO�OpDpCOOOOOOOOO
0
yWWCW
(QC(O.�pDp�000OOOOOOOO
0
0
O
O
0 0
N N
0 0
N N
0 0
N N
0 O
N N
O O
N N
O O
N N
O 0
N N
0 0
N N
0 0
N N
0 0
N N
0 0
N N
0 0
N N
0 0
N N
g
N N
0 0
N N
0 0
N N
0 0
N N
0 0
N N
0
N N
0
N N
0 0 O
N N N
O O
N N
O O
N N
O O
N N
O O
N N
O O
NNN
O O
N N
N Q
N N n
bbbbbobbpbbbtabbpbbbbbbbbbbbbbbbbpbbbbbbbpbbpboo
bbbbbbblD
bbblab
Eb
o(oy.1
"'�
IEy�
000y0y110
ySy
(o(ff� WOy
(Op (Oyy yoyf
(oy.�
W W
W W
W W
W W
Gf W
W W
W W
W W
W W
W w
W 4W1
W00(.Ry�
W W
W W.
W iWiD
�yWew
W fA
(0w.1 (o(�ff
W W
W W
W W
�oy.1�
4Wi1 W
yeyDl yO�D
W W
yo�D (.0�D� y0y1�0
W W 41
(0y.10
4W1 Gt
WOW
W W
(e(,..11
W W
W fd
fd Gt
N W W
W N
O
V
0 0
OOO
0 0
C
0 0
pOCOOOOOO
0 0
0 0
0 0
0 0
G G
0 0
O pO�
0 0
OOOOOO
0 0
0 0
0 0
G O
0 0
pO�pO�
0 0
pO� OOOOOOOOpO�OOOO
0 0
�tt
0 0
0 0
0 0
0 0
0 0
0 0 0
G C 000..
OVDOVDOVD
Pop.
0
OVD WJOJ+DOJ+DOV+D88888
0 0
0 0
0 0
0 0 O
-'
N
O
Q�y
pN pN
NNNN
pNp NNNNNNNNN.N.ppN
ANA NNNNNNNNN
NN
NNNNN
JNJaapNppNp
A A
A A
NNNN
A A
AA (O
j j
mpf0pp
W
(WiD W
OTuURAAAA
W W OUR
N
O O
OO
0 0
0OAJ
0OLJn
0OU 0Om
0OA
0Ot0
0Cmp
0OJT
0GWVt
0OWW
0Of0
0OO
0O
0ONW
0OpWD
0G
0OAV
0GW 0OJ
0OW
0WOA
0ON
0�pONp
0OW 0OA
0O�0OO
0OA0OO
0»-
0OO+D
0N
0m 0V
0-OWo
0
0NNN
0—
0W
0A
0OOD
ptN-O
0fJO
0fWO
�
OfW
OOOVi OW�W.P
OfVWWT
OpWpA�D
O�O GJ
WO
-0
TWOONONT
m0OJ
.0ONm
O0OOi)
JW
V+W
ON0
W
0 W
WNJW
AWOW
O
OD O+
W OD
O N�
OD m N
ege
O
44 A
A A A A A A A A A A A A A T T T TO
Aa .P A A A A A A A A A A A A A A P A A A A A A A A A A A A A A A A A QNOpp N d
J V V V J V V V V V V V V J J J V V V V V V V V J J J J V V V V V V V J J J J J J J V V J J J J J J (T W N N N W O OBI DOc
N N
W"
N NNN
N N
N N
N N
N N
N N
N N
N ��yy
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N+
N N
N N
N N
N N
W ODJ
V
0)A
W (T
(TAA
W
W NNN++OOtOm
W Ql
JN
W fT
fTA
A�pW�ppp��
W W
NN++00
t0
<O
ODJ
J TO
[T
AA
W N
O �
pVDJ
A
N
�OpD
0
V 0
N W
W+
A V
O W
W W+
A
V O
W O)fp
NO
J
Ow
W W
N N
W+
A
fp N
N m
N A
O
W N N
N m
N W
m W
T DWT
S CWT
+ m
O
C
O o
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O O
O O
O O
O O
O` O
O O
O OO
O 33
O C
AO
G ..
A+OAWWD
00
A0OOWWO0Oi�
tAAWVO
mW+J
jNWJ
mtWJp
AWWV
AtWWO
AOWCOI
SOWp TD
0000
S(A TT
SJA T
WA WOA
mOAW
+NNO
GACNA
OA0NA
OmAOWA
JWmp
GOAi
OA
t{loMee
CtVAO
OA
O
0fOWV0l
0AO
DwoW
J
mWV
WWV
NW
OWWA
tWWT
(WmT
+WOJ
OWf
OWm
WW OA
tAO tAO
tAO
NA
tATOA
OWA
JA
WJA OJA
OAO<TAJ
O�.
AA
�
OA NOA
O
At�
TT
W W
W
A
1-
WoWW
We
mOOOOO
A�eee
0
N
NNNNNN
N
NNNNNNN
NNN
p, x
01 N
N,��p�pp
A,�,�A
A W
W W
(.yW�D W
NNNpyNyp��pNDpN+++++pp+000�y0.10�01010
tppD tp
lO OD W
V
-N
N AA
p4A1411�f
5.0
N W
(.N�ON�NN
O W
OVi OND+ATmI�f
N
V O
W NOD+W
OImNA
JON(V11m0
W
Omim+A
V IJONN
V O
W T W
pyJ�JNNN
V N
V+No(T
OJl
03
W mwN
H O
pp
O O
0 0
O O
0 O.O
O O
0
O O
0 0
O O
0 0
O O
0 0
O O
0 0
O O
0 0
O O
0 0
O O
0 0
O O
0 0
O O
0 0
O O
0 0
O O
0 0
O O
0 0
O
0 0
O
0 O
0 0
O 0
0 0
0 0
0 0
0 o 0
0 0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 O
0 0
O O
0
O O 0
0 0 O
0
O
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
O
N N
C
N N
N N
N N
N N
N N N
N N
N N
N N
N N
0
NNN
N N
N
J J
J V
V V
V ( Vp
J J
V V
V V
V V
J J
J ( Jp
J J
J V
V V.
V �Vp
J J
J J
J J
J J
V � Jp
J V
� Vp V J
10
J J
V V
� Vp V
J J
J V
V V J
J
mfpOfWOfOOtOOfpOtWOtOmtWONmmmtWOfWOfWOfpD
fOOfOfOO
fOO
tpO NtpOm
mfO
tWOtWOfOmfDfWOmmmfOmm
ww
ipO
fOO mIO
0(
wI,
mN tWOmZ
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
OO
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0 0
0 0
0 0
0 0
0
NN
O
N
O
N N
O
N NN
NNN
N N
N N
N N
O O
N NN
O O
N
C O
N N
0 0
N N
0 0
N N
000000000000
N N
N N
N N
N N
N NNN
0 0 0
NN NNNN
0 0
0 0
N
O
N N.
Npp9p
0
N N
0 0N
N N
V
J
V V
V V
V V
J V
V V
J V
V V
V V
J J
J J
V V
J V
V V
V V
V V
V J
J J
J J V
V J
J J
J J
J
J J
J V
—0
O
O O
O O
O
O
O OOO
O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O 0
0 0
0 0
0 0
0 00000
0
0
000.000.
111
2200000000...0000000000000000.
00000..0
0000.
003
P»'3
N
N
NN
N
N N NNNN
NNNN
NN
NNN
NN
O
WWrnrnWWwmmmrnWaWmWrnwrnrnrnrnWWWrnaawrnWWrnrnrnW
N
N
N NNN
NNNNNNN
mwWWwwrnW
aoi
oDWW
wWc"o
9. a
A
N N
0+++++NNNNN
N N
N N
N N
N N
N N
W
N N
W W
N N
W A
N N
AAST
N N
W
N N
O WO
N N
V
N N
V OD
""NW
OD t0
fp0++N
W W
W W
W
W
N
W W
W DODO+W
W A
A A A
A f T
(T C T
UtO
O) O)
W t0
V W
(T ODOR
f O O
W
N A
N W
O
aD O
tp 0)AN+++N
IV A
O� 00
O
A Oi
+
mN+OD
A G�
ffpp IV
N W
IJ N
O W
V+
pp��
O IJ
V A
O V
Vt W
tJ tJ
CJ A
%I O
�4
O� W ((,,JJ
P
V (T
�I O
O tJ
J L.
b, m
O
A
N 3
A V
a�ae
�ee
W t
M W+V
�e
Aw
Vt W
Mee
A W
Ut.Ow
a���a
lw
W wwoWO
a
a a
a
OOD++
(T
a a a��a��a
W W
W ONNO
aye
eeeee
(TN
3
>> m
A
L A
A A�
App App
A��O AT�
A A
A A
A A
A A
A A
A A�
Wp W
W W
W W
W W
W
WTp
W W
WT W
W W
W W
W W W
W
N((
N�� Nmm—N+N+N
�pAp�
in
w
NNW(p
�pNp�NNNNN
W tOA
O(WT+W
N
V W
dDA
mfWT
O00i�
V
NOD
W iNOAON�+001N
V W
mA-O
N
M
V
NNW
W fW0 OSNtO
(VT
+��
W JN
NOOWG
N�
N N
N NNNNNNNNNN
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
N N
G
W W
r V
W W
(TA
N
A W
N N
W Ntptppp
N N
NN
N N
N N+++++++
N
N N
N N
N N
N N
W ;w
NNN
AA
N
W N
N
.
W
W O
Ow
3
J
N
W(T
wwVOWWmAVOWWmN
VV
AmWNWN
m
T O
J OWWN
T
mm
WTNWmNN
NW
a
W
NN 0
000s000000000s000aa000000s000000000000soo
g$000000000$000a$$$0000000$000$a000$0008$
M
O Ooiii
oo000000000000000000000
00000go
000
000
000000000
oaoo�000000000�000000800
oaooppoocccc00000bobooacccccobb0000cccccoo
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O 0
0 0
0 0
0 0
O O
O O O
0000000000000000000000000000000000000000.0
00000000000000000000000000000000000000000
O OOOOOOOOOOOOO0000OOOCOO
OOOOOoOOO
A A
c.00obob.
A A
A A
A A
A A A
A A
V J
N U
A A
V V
U U.0
A A
V V
U
A A
J V
U N
A A
V V
N U
A A
V V
U U
A A
V V
U U
A A
V V
U U
A A
J V
N N
A A
J J
N N
AA
J J
N N
A A
J V
N U
A A
J V
U N
A A
V V
N U
A A
J V
N N
J J
N N
J J
N U
J V
U N
V V
N N
V V V
U U U
fA fA
N N
E9 d!
N N
d0 fA
N N
fN EA
N N
fA d!
N N
M d!
N N
4! f9
N N
fA fA
N N
fA EA
N N
EA fA
N N
fA fA
N N
fp 4A
N N
f!1 fA
N
fA fA
N N
Hi fA
N N
fA fA
N N
EA fA
N N
(A fA
N N
d! (A
N N
ffl N W
N N N
OAD OAC
W W
OAD
OAo
m OAo
OAO OAD
W W
OAD W
pAD OAD
m W
W �
OAo OAD
OAD OAD
OAD OAD
OAD OAD
� AW
AW AW
W OAD
OAO W
AW W OAo
<W+NAmA
mV
mOt0i
1�JAA
!�NNA
fjNVA fvfAO
dWN!EppAADD
fWJA
WOt0
1�AO3 NtmO1
nTAO nff0p
nd4Di&NWi
.OD .OD
.V .V
..
mNN.
O.�
OW.i
UOW.D (W.
EmNNAA
INpApAN
fmNAJAfWN0OAAI�
NA
fWNOJA fWNNfON fON
NUWO
N
O
00O
0O
W+WN
NsmAT
V NJ�
OO.ND
N
O O
O O
O'O
0
0A
0
0A
0OWWA
0IWOWAI�
0OA
0OWWA
0G
0O(I
0 0O(T
OO
OO
0OW 0(OT
0G
0OOW!
0GJ
0GvU
0GrW
O
OGv
0OvJ
OW OW
CW OW
GW OW
GW OW
O000000
O0WWA .WWA
WWWNWW
OOi C(J
J
G0OW1
COWD
O
WWN
+CN
W
wit;
O
WO
i
WA
mTONW
O
T T
T0WWNNO
JtO
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0O
000Imo
000000000000000000
Omm
(pp(p�ppOOOOOOO
WW
W W
W
mOm
pwOwp��OC
00
OOOOpWWppppp��pp��pppppO0p�p�p
0
0 O
0 0
N N
0 0
N N
0 0
N N
0 0
N N
NN
N N
0
N N
N
N
0
N NN
0
N N
0 0
N N
0 0
N N
0
N N
N N
00
.2...
0
N
O
N
bbbb88bbbbbbbbbbbbbbbbbbbbbbbbbbbiabbbbbb6
0000!
00000000000000o00o
WW
0t0
00000`00p0
00000666!..
o`e
oyo�yu
....00
`e�.1
W WWiif
to:
boy yo`0y0t00`0
<D 4i
W(.+W
w0
Wa 4i
�0y
4i Y.�i
yoyt�
Wyi
W W
1Wdw
W''�a
yo�`o
boy
boy
boy yo
yo `o
wo `o
wSo`o
000000000O000��po0op��000��0000000000000oO00000ppoo0��pp0pp��p0��000
N N
N N
N Np
Np N
Ny Np
Np Np
N N
N N
N N
N N
N N
N Np
N N
N N
N N
N N
N N
�pp Np
N Np
Np Np Ny
A AAA
p
A .P
p
A A
y p
p A
p p
A A
A A
A A
A A
A A
A A
p
A A
A A
A A
A A
A A
A A
p
A A?
p
A
p p y
A AA
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
pp
0 0
0 0
0 0
0 0 0
0 0
V V
0 0
V V
0 0
V J
O C
V J
O O
J V
C O
J J
O C
J V
O O
V V
O O
V V
O O
J
O O
J J
O O
J V
O O
V V
O O
V V
O O
J J
G O
J J
O O.0
J J
O
J V
O O
J V
C O O
V V V
O m
V N
A W
+++++++++
N+
80
0 0
'I:!
WN
N N
A U
(J
(��JJtt N
J m
N NO�
N N
VOOOWNN
W W
W W
WW
A mO_
W A
A AAA
V
Sit
N N
A A
A W
8F �
N
e y
A A A A A A A A A A A AAA A A O A A A A A A A A A A A A A A A A A A A A A A
V V V V J J J V V V J J V V V V V V J J J J J V V V V V J J J J J J V V V V V V V
fA f9
V
fA fA
(T
fA EA
N A
EA E9
A W
M E9
W W
Vi di
N N
EA EA
fA fA
O
f9 fN
t0 N
(A (A
O W
f9 fA
OD V
E9 fA
J
W��
fA fA
W N
fA fA
N A
fA FA
A A
fA fA
W W
fA EA
N N
EA fA
fA EA
O O
fA fA EN
tO tp
ODO
W NfpNNOD+AJtO
WW
NtT
pOpp
ODA
V
O W
W OND+A
p
JO
W �tNO
N(Wli
W
O W
pp
Oi tO
NfOT
(O��
OO N.A
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O O
A A
p
A A
A A
A A
p
A A
A
A A
A A
A A
A A
A A
A A
A A
A A
A A
A P
A A
A
Ap�
A
U JON
A JONNO)+
WA
J�fNT
(p.
-TT-2
W
A
W W
W W
W W
W WW
W W
W WW(,J
W
W
W W
W W
W
W
W W
W W
WW W
N NNN1~JN~~NI~V
NNI~�fINJINa
IN�fNNNN+++++++++++++++++++++
OI
A V
ONN000
W
Ol W+A
V mN{OI�
00OOOID
V
4W.1NM+A
ID
{I(J�D� fD
W
tD tO
tOONA
QOppD OpOD
V
p p
tNN9+W
P V
V�
V pOA
V V
W
V
O
OI W_{p.W��
V mN
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O o
..go
N N
N
O O
N N
006000226.2000000
N N
N N
N N
N N
N
N N
N N
O
N N
O O
N N
O O
N N
O O
N N
O O
N N
O O
N N
O C
N N
O 0
N N
0 0 0
N N N
J J
mm
V V
NOON
V V
NtOO
V V
LOONN
V V
V J
OO OO
J J
OO fOOmmmmtOm
V J
J J
�Jp V
V V
OO �OOmNm
V V
V J
OOf0pf00
J V
V V�p
tOOOmNNt0p
V V
V J
J V
f00 f00
J J
f00 t00
J J J
f000000
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0 0
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
+ +
O O
+ +
O O
+ +
O O
+ +
G O
+ +
0 0
+ +
0 0
+ +
0 0
+ +
0 0
+ +
0 0
+ +
0 0 0
+ + +
+ +
N N
J J
+ +
N N
V V
+ +
N N
V V
+ +
........
V J
+ +
V V
+ ++
V J
+
V J
+ +
N N
J V
+ +
NNN
V J
N
J V
N N
V V
N NV
V
N VN
V
N N
J J
N N
V V
N N
V V
N N
V J
N N
J J
N N
J J
N N N
J J J
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0 0
COON
A AAA
0 0
0
......
0
A A
0 0
A A
0 0
O
A A
0 0
O O
A A
0 0
O O
A A
0
O O
A A
G G
A A
O O
O
A A
O O
A A
O O
A A
O O
A A
O O
G O
A A
O O
O C
A A
O C C
O 0
A A
O O
0 0
A A
O O
0 0
A A
O O
0 0 0
A AA
O O O
m rnaWrnNN
NN NNrnrnaarnrnmrnmrnrnrnmrnrnrn�wrnwwWNNaaarnaWrnrn
N
N N
1,1000000
O)Oi
OI V
V V
V J
J �I
V V
V V
V J
JO)
W W
W m
W m
W O.O
f0
f000Of0
t0
t0 BOO
0080
OIN
MD
. V
W ON
W
O. <1i
O W
NN Lj
(T W
Op O)
O
m 6
V O
+ IJ
W N-'�e
W
N Vt
O� V
O_
� IJ
W A
fn J
QD fO
+ IJ
A tT V
W
e
e 3E
3Ee
3�2'3'e`e
3�u'�'a'3'3'e`e
uE 3E
W N
W W
O pmm
W
NN
W
NNN
W
-
N [T
- -
tTN
- -
NtT
- -
tOOI.i�UUUNNNN(TNNNN
- W
- -
- -
- to
- - -
OVO A
O D W
t00 tNT
t O A
+��N
0 U+
V
O)
(O(,,uu�
W OlANN0p1N�
N V
WWW
W O)
A O
NON
W
+
fUfppNUQNOpp
ODAO�pNOJp�
V N
O D W
f O A
N V
O N+
W OND
N
AAA
N J
om
W W
WW
A t O
W
NOT
m)
+
00
N00
V N O)
A A
J NNN(T
A SP
(per p�
ApWA�
AAA
W
A
W W
(pq A
NN++OOWp
A spy
A A
W W
f0
W W
f0
W W
OD
W W
V
W W
W ..
A
W
A A
W W
W W
W W
NN++000f0
W W
W W
W N N
fp
OADO
W OOim
im
OD�A
V OOww
W+Ar
tfOp
(OW��
O W
fpJV��
W OD+A
pO��O�NU
V O
W �tNO
NtWT�O
W
OAim
N(OT
�. N+A
G)
q -
C
a
-1
9
0
Q
G)
vi
�0
N
.�.
o
6)-bk
o
n
°
ram►
d
C
T03
!Q
T-000
H
N
A W
Ni
CC
C1
o
OLD).
N
N
co
0
m
�}
@
C
C1
fli
W
n
O
G
--o
n
3
n
mho,
v
m
3
w
m
°
R
H
n
Vi
�1
0wo
<
m<
v
c
c
3
u�i
s
< rnww�
w
1G
C
g
m 4
W
w
v
N
O
O O
O
O
O
O
O
0
N
0
-"
ID
000
O
000
C.
�c2la
0O7OD
C.
S
Z
O
O C.
O
O
O
O
V
W
y
%C
N
00
O
O
O O
M
O
O
O
O
0 0
0
0
'O
O
O
O O
CC
�O1
0
0
O
C.
O O
O
j
01
O
V
00
V
y
'�
dp
V
O
ACAO
AOWDm
G
O
CO
V
W Gt
w
<
O
W
V
Cl)
V Cr
:�
N
�y
O
Co
0W000
N
NO
w
CTOACO
N.
O
Z
N
N
N
V
a
W
N�
b9�
N
S
N
y
A
EA
3
w
0
V
O
co
EA
(O
OD
N
0
W 00
O
NONO
W
0)
[,a
O
0
0 0
3
C.
O
O
O
o
V
O
V
O O
V
0
3
to
O
O O
y
C.
O
O
O
O
0
O
0
0 N
al
O
Cl
O
N
W
fo
69
w
m
o
0�0
o
m
0
w
O
N
W
A
C
OOD
0
C.
O
O
0)
i
N
-4
to
j
e
O N
V
CD
1 �
�
S O
N
O
O
O
O
O
B
W
C.
w
O
0
O
oo
w
OD
o
W
co
A
O
N
OI
O
N
V
C.-
A
GT-F3D vs. City of Vernon G-3
Usage Estimates:
Therms per day
100,000
Therms per month
+-
Estimate of
Average Monthly SoCalGas
Charges
GT-F3D
Tiers
Therms
Rate
Amount
Subtotals
$/Therm
Tier 1
20,833
20,833
0.13829
$2,881.00
Tier 2
83,333
62,500
0.08414
$5,258.75
Tier 3
166,667
16,667
0.04950
$825.02
Tier 4
Above
0
0.02475
$0.00
Totals
100,000
$8,964.76
$8,964.76
0.08965
ITCS Surcharge
100,000
-0.00033
-$33.00
-$33.00
-0.00033
Total Transmission Charges
$8,931.76
State Mandated Charges
G-MSUR (Franchise)*
100,000
0.01070
$1,070.00
G-PPPS (CARE)
100,000
0.02732
$2,732.00
G-SRF (CPUC)
100,000
$0.00
0.03802
$3,802.00
$3,802.00
0.03802
Monthly Customer Charge
$350.00
$350.00
0.00350
Total SoCalGas Monthly Charges
$13,083.76
0.13084
Vernon's G-3 Transportation
Rate
G-3 Tiers
Therms
Rate
Amount
Tier 1
20,833
20,833
0.12061
$2,512.67
Tier 2
83,333
62,500
0.05840
$3,650.00
Tier 4
Above
16,667
0.04472
$745.35
Totals
100,000
$6,908.02
$6,908.02
0.06908
Monthly Customer Charge
$300.00
$300.00
Total Vernon G-3 Monthly Charges
$7,208.02
0.07208
Calculated Cost Difference
$70,509
per Year
$5,876
per Month
$0.0588
per Therm
45%
Less
NOTICE OF PUBLIC HEARING
The City of Vernon will conduct a Public Hearing which
you may attend.
PLACE: Vernon City Hall
City Council Chambers
4305 Santa Fe Avenue
Vernon, CA 90058
DATE AND TIME: Tuesday, February 20, 2007, at 10:00
a.m., or as soon thereafter as the
matter may be heard
PURPOSE: To amend gas rates for the City of
Vernon and amend Vernon's Gas Municipal
Utilities Department Schedules G-2
(Small Commercial Gas Service), G-3
(Large Commercial Gas Transportation),
G-4 (Large Commercial Gas Commodity)
and G-5 (Electric Generation Gas
Transportation) and amend form Natural
Gas Transportation Agreement
Any interested person may attend and may make an oral
presentation to the City Council at the time of the
hearing, or may present written comments prior to the
hearing.
If you challenge the approval of the amended gas rates
and the amended Vernon's Gas Municipal Utilities Department
Schedules G-2, G-3, G-4 and G-5 and amended form Natural
Gas Transportation Agreement or any provision thereof in
court, you may be limited to raising only those issues you
or someone else raised at the hearing described in this
notice or in written correspondence delivered to the City
of Vernon at, or prior to, the meeting.
The hearing may be continued or adjourned to a stated
time and place without further notice of a public hearing.
Dated: February r7 , 2007
MANUELA G RON
Acting City Clerk
AFFIDAVIT OF POSTING
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES) ss
CITY OF VERNON }
I, Manuela Giron, Acting City Clerk, of the City of Vernon do hereby
certify that on the 7th day of February 2007, I did post three copies
of the following:
NOTICE OF PUBLIC HEARING - to amend gas rates for the City of
Vernon and amend Vernon's Gas Municipal Utilities Department
Schedules G-2 (Small Commercial Gas Service), G-3 (Large
Commercial Gas Transportation), G-4 (Large Commercial Gas
Commodity), G-5 (Electric Generation Gas Transportation) and
amend form Natural Gas Transportation Agreement.
On each of the following places, to wit: on the bulletin board outside
the main entrance to the City Hall of the City of Vernon located at
4305 Santa Fe Avenue; at the northwest corner of 38th Street and Santa
Fe Avenue; the northeast corner of Leonis Blvd., and Pacific Blvd.,
all in said City, there being no newspaper of general circulation
printed and published in the City of Vernon.
-,, &;,
s�
Date: -7 /20 f vim--
Manuela Giron
Acting City Clerk
State of California )
) ss
County of Los Angels)
On r �� 2bc3te before me, 6-50 I _ b
Notary Pu ic, personally appeared Man la Giron
personally known to me (
exi4e c.p) to be the person(-) whose name. s) is/ -awe subscribed to the
instrument and acknowledged to me that-hre/she/ttrey executed the
same in errs/her/t -r authorized capacity, and that by h4-S/her/t+rt&-ir
signature(.H on the instrument the person(-s�, or the entity upon
behalf of which the person(s) acted, executed the instrument.
0 wm„ WITNESS my hand and official seal
NUALLO
cardr ft 11660W
c
caan. ,yx 1�. �Ot
NOTICE OF PUBLIC HEARING
The City of Vernon will conduct a Public Hearing which
you may attend.
PLACE: Vernon City Hall
City Council Chambers
4305 Santa Fe Avenue
Vernon, CA 90058
DATE AND TIME: Tuesday, February 20, 2007, at 10:00
a.m., or as soon thereafter as the
matter may be heard
PURPOSE: To amend gas rates for the City of
Vernon and amend Vernon's Gas Municipal
Utilities Department Schedules G-2
(Small Commercial Gas Service), G-3
(Large Commercial Gas Transportation),
G-4 (Large Commercial Gas Commodity)
and G-5 (Electric Generation Gas
Transportation) and amend form Natural
Gas Transportation Agreement
Any interested person may attend and may make an oral
presentation to the City Council at the time of the
hearing, or may present written comments prior to the
hearing.
If you challenge the approval of the amended gas rates
and the amended Vernon's Gas Municipal Utilities Department
Schedules G-2, G-3, G-4 and G-5 and amended form Natural
Gas Transportation Agreement or any provision thereof in
court, you may be limited to raising only those issues you
or someone else raised at the hearing described in this
notice or in written correspondence delivered to the City
of Vernon at, or prior to, the meeting.
The hearing may be continued or adjourned to a stated
time and place without further notice of a public hearing.
Dated: February ( , 2007
MANUELA G RON
Acting City Clerk