Resolution No. 95501
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RESOLUTION NO. 9550
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON AMENDING RATE SCHEDULE NOS. G-1, G-2, G-3,
AND G-5 REGARDING NATURAL GAS RATES TO BE CHARGED
FOR GAS DISTRIBUTED AND SUPPLIED BY THE CITY WITHIN
ITS BOUNDARIES
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
WHEREAS, from time to time -the City Council has by resolution
established and amended certain rate schedules, rules for gas service
and form agreements for natural gas users in the City; and
WHEREAS, the City of Vernon is currently purchasing natural
gas transmission service from the Southern California Gas Company
("SoCalGas") 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, SoCalGas recently made annual rate adjustments and
increased rates under Rate Schedule No. GW-VRN; and
WHEREAS, the City Council of the City of Vernon desires to
amend Rate Schedule Nos. G-1, G-2, G-3 and G-5 to pass the wholesale
rate increases through to customers taking service under said Rate
Schedules; and
WHEREAS, the proposed amended natural gas rates are to
effective on March 1, 2008.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
1 SECTION 1: The City Council of the City of Vernon hereby
2 finds and determines that the recitals contained hereinabove are true
3 and correct.
4 SECTION 2: The City Council of the City of Vernon hereby
5 adopts the rates, terms and conditions set forth in amended Rate
6 Schedule Nos. G-1, G-2, G-3 and G-5 as the City's rates, terms and
7 conditions for the distribution of natural gas supplied by the City of
8 Vernon to be effective March 1, 2008, copies of which are attached
9 hereto as Exhibit A and incorporated by reference.
10 SECTION 3: Any resolution or parts of a resolution in
11 conflict with this resolution is hereby repealed.
12 SECTION 4: The City Clerk of the City of Vernon shall
13 certify to the passage of this resolution, and thereupon and
14 thereafter the same shall be in full force and effect.
15 APPROVED AND ADOPTED this 19th day of February, 2008.
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Name: Leonis C. Malburg
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19 Title: Mayor
20 ATT� ST:
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22 M UELA GIROA-; C ty Clerk
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby
certify that the foregoing Resolution, being Resolution No. 9550, 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 19, 2008,
and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the
City of Vernon.
(SEAL)
h4e,� /��
ANUELA GI N, City Clerk
- 3 -
EXHIBIT A
CITY OF VERNON
NATURAL GAS 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
25.071 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 shall be shared between
Customer and City. City shall pay connection costs from the City -owned gas line to Customer's
property line. Customer shall pay costs from Customer's property line to the connection point
with Customer's house line, including the cost for the meter and regulator. An "Application and
Contract for Natural Gas Service" is required.
Page 1 of 2
City of Vernon Council Resolution ASS 0 , effective March 1, 2008
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 15.071
Tier II Over 4,187 Therms 10.071
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 lffO , effective March 1, 2008
2. Costs for connection of Customer's facility to City's gas system shall be shared between
Customer and City. City shall pay connection costs from the City -owned gas line to Customer's
property line. Customer shall pay costs from Customer's property line to the connection point
with Customer's house line, including the cost for the meter, regulator, and, if required by the
City, an electronic corrector. An "Application and Contract for Natural Gas Service" is required.
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. 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 `-0, effective March 1, 2008
CITY OF VERNON
NATURAL GAS DEPARTMENT
Schedule G-3
LARGE COMMERCIAL GAS TRANSPORTATION
APPLICABILITY
This schedule is for City of Vernon gas transportation service to large commercial customers
using at least 250,000 Therms per year. Customers receiving service under this schedule may
purchase commodity gas from a Third -Party Supplier or may request to purchase commodity gas
from City of Vernon under Schedule G-4.
RATES
Monthly Customer Charge: $300
Monthly Transportation Charges: Rate, in Cents per Therm
Tier I 0 — 20,833 Therms 12.132
Tier II 20,834 — 83,333 Therms 5.911
Tier III Over 83,333 Therms 4.543
SPECIAL CONDITIONS, GENERAL. The following Special Condition is applicable to all
customers, whether they receive transportation -only service or both transportation and
commodity service.
Costs for connection of Customer's facility to City's gas system shall be shared between
Customer and City. City shall pay connection costs from the City -owned gas line to
Customer's property line. Customer shall pay costs from Customer's property line to the
connection point with Customer's house line, including the cost for the meter,
regulator(s), and an electronic corrector. An "Application and Contract for Natural Gas
Service" is required.
SPECIAL CONDITIONS, TRANSPORTATION -ONLY SERVICE. The following Special
Conditions are applicable to customers that receive transportation -only service. If customers
receive commodity service from COV, the following Special Conditions do not apply and the
Special Conditions in Schedule G-4 apply.
Page 1 of 3
City of Vernon Council Resolution c0, effective March 1, 2008
2. 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.
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.
(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
Page 2 of 3
City of Vernon Council Resolution q�^O, effective March 1, 2008
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.
(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. 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 9S�c, effective March 1, 2008
CITY OF VERNON
NATURAL GAS DEPARTMENT
Schedule G-5
ELECTRIC GENERATION GAS TRANSPORTATION
APPLICABILITY
This schedule is for City of Vernon gas transportation service to electric generation customers
using at least 36,500,000 Therms per year (100,000 Therms per day). Customers receiving
service under this schedule may purchase commodity gas from a Third -Party Supplier or may
request to purchase commodity gas from City of Vernon pursuant to Schedule G-4.
RATES
Monthly Customer Charge: $700
Monthly Transportation Charges: 4.097 Cents per Therm
SPECIAL CONDITIONS, GENERAL. The following Special Condition is applicable to all
customers, whether they receive transportation -only service or both transportation and
commodity service.
1. Costs for connection of Customer's facility to City's gas system shall be shared between
Customer and City. City shall pay connection costs from the City -owned gas line to
Customer's property line. Customer shall pay costs from Customer's property line to the
connection point with Customer's house line, including the cost for the meter,
regulator(s), and an electronic corrector. An "Application and Contract for Natural Gas
Service" is required.
SPECIAL CONDITIONS, TRANSPORTATION -ONLY SERVICE. The following .Special
Conditions are applicable to customers that receive transportation -only service. If customers
receive commodity service from COV, the following Special Conditions do not apply and the
Special Conditions in Schedule G-4 apply.
2. 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.
Page 1 of 3
City of Vernon Council Resolution %O, effective March 1, 2008.
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 togas 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.
Page 2 of 3
City of Vernon Council Resolution AIYa effective March 1, 2008.
(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.
(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. 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 (SSA, effective March 1, 2008.
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: March 4, 2008
TO: Donal O'Callaghan, Director of Light & Power
FROM: Nelly Giron, City Clerk
RE: esolution No. 9550 - A Resolution of the City Council
of the City of Vernon Amending Rate Schedule Nos. G-1,
G-2, G-3, and G-5 Regarding Natural Gas Rates to be
Charged for Gas Distributed and Supplied by the City
Within its Boundaries
Transmitted herewith is a signed copy of Resolution No. 9550,
referenced above, which was approved by City Council on February
19, 2008.
NG:dr
c: Resolution No. 9550