Resolution No. 2010-076RESOLUTION NO. 2010-7`6
A_RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON AMENDING NATURAL GAS RATE SCHEDULE NOS. G-1
(RESIDENTIAL GAS SERVICE), G-2 (SMALL COMMERCIAL
GAS SERVICE) AND G-3 (LARGE COMMERCIAL ,GAS
TRANSPORTATION) 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 beset 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 wholesale
natural gas transmission.service from the Southern California Gas
Company ("SoCalGas") under Wholesale Natural Gas Service Rate Schedule
No GW-VRN ('"SoCalGas Wholesale Rate Schedule") permitted by the
California Public Utilities Commission in Docket Nos 00-04-060, 05-12-
044 and 01-12-018; and
WHEREAS, SoCalGas has 'recently increased the rates charged to
customers for the transportation of wholesale natural gas under the
SoCalGas Wholesale Rate Schedule; and
WHEREAS, the City Council of the City of Vernon desires to
amend the City's Natural Gas Rate Schedule Nos. G-1, G-2 and G-3
(collectively, "Amended Rate Schedules")' to pass the wholesale rate
increases through to customers taking service under said Rate
Schedules; and
WHEREAS, the proposed Amended Rate Schedules are to be
effective on July 1, 2010; and
WHEREAS, the City Council of the City of Vernon held a public
hearing on June 21, 2010 to amend the Natural Gas Rate Schedule Nos.
G-1, G-2 and G-3 for gas distributed and supplied by the City within
its boundaries and finds that all persons have had the opportunity to
be heard or to file written comments to the proposed amendments; and
WHEREAS, the City Council of the City of Vernon has heard and
considered all evidence, ;both written and oral, presented in
consideration of the proposed Amended Rate Schedules.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon does
hereby find and determine that the recitals contained hereinabove are
true and correct.
SECTION 2: The City Council of the City of Vernon hereby
adopts the rates, terms and conditions set forth in the Amended Rate
Schedules as the City's rates, terms and conditions for the
distribution of natural gas supplied by the City of Vernon within its
boundaries, copies of which are attached hereto as Exhibit A and
incorporated by reference, and adopts such amendments to go into
effect beginning July 1, 2010.
SECTION 3: Any provision contained in Resolution Nos. 9134,
9240, 9265, 9344,. 9374, 9550, 9732,-10,045 and 10,108 not consistent
with or in conflict with this Resolution are hereby superseded by this
Resolution. In all other respects, Resolution Nos. 9134, 9240, 9265,
9344, 9374, 9550, 9732, 10,045 and 10,108 shall remain in full force
and effect.
SECTION 4 The City Clerk of the City of Vernon shall
certify to the passage, approval and adoption of this resolution., and
the City Clerk of the City of Vernon shall cause this resolution and
the City Clerk's certification to be entered in. the File of
Resolutions of the Council of this City.
APPROVED AND ADOPTED this 21St day of June, 2010.
Name: Hilario Gonzales
Title: Mayor
-3-
STATE OF CALIFORNIA )
ss
COUNTY OF LOS ANGELES )
I, Willard G. Yamaguchi, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution
No. 2010-76 was duly passed, approved and adopted by the City Council
of the City of Vernon at a regular meeting of the City Council duly
held on Monday, June 21, 2010, and thereafter was duly signed by the
Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this X""' day of June,,2010, at Vernon, California.
Willard G. a uc City Clerk
(SEAL)
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
29.212 Cents per Therm
Commodity Charge: Commodity Charge is equal to the City's Weighted Average Cost of Gas
calculated at the SoCalGas Citygate 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 Citygate. Bond -financed, prepaid gas may be provided to
customers at prices not to exceed market prices for monthly index price
gas. 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 contribute an amount equal to four cents per Therm
multiplied by customer's projected annual usage, not to exceed fifty percent of the total
connection cost incurred for work done by the City. Customer shall pay the balance of
costs. The total connection cost includes traffic control, trenching, piping, repaving, and
Page 1 of 1
City of Vernon Council Resolution effective
installation of the meter, regulator(s), and other equipment required by the City. 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.
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 effective
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 17.312
Tier II Over 4,187 Therms 7.735
Commodity Charge: Commodity Charge is equal to the City's Weighted Average Cost of Gas
calculated at the SoCalGas Citygate 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 Citygate. Bond -financed, prepaid gas may be provided to
customers at prices not to exceed market prices for monthly index price
gas. 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
City of Vernon Council Resolution
0.30 Cents per Therm
effective
Page 1 of 1
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 shall be shared between
Customer and City. City shall contribute an amount equal to four cents per Therm
multiplied by customer's projected annual usage, not to exceed fifty percent of the total
connection cost incurred for work done by the City. Customer shall pay the balance of
costs. The total connection cost includes traffic control, trenching, piping, repaving, and.
installation of the meter, regulator(s), and other equipment required by the City. 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 effective
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 13.815
Tier II 20,834 — 83,333 Therms 6.412
Tier III Over 83,333 Therms 4.784
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 contribute an amount equal to four cents
per Therm multiplied by customer's projected annual usage, not to exceed fifty
percent of the total connection cost incurred for work done by the City. Customer
shall pay the balance of costs. The total connection cost includes traffic control,
trenching, piping, repaving, and installation of the meter, regulator(s), and other
equipment required by the City. 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 1
City of Vernon Council Resolution effective
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. 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.
3. 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.
4. 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.
5. 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 2
City of Vernon Council Resolution . effective
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.
6. 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.
7. 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 effective
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: June 22, 2010
TO: Donal O'Callaghan, City Administrator/Director of Light& Power
FROM: Willard Yamaguchi, City Cler
RE: Resolution No. 2010-76 A Resolution of the City Council of the City of Vernon
Amending, Natural Gas Rate Schedule Nos. G-1 (Residential Gas Service), G-2 (Small
Commercial Gas Service) and G-3 (Large Commercial Gas Transportation) for Gas
Distributed and Supplied by the City Within its Boundaries
Transmitted herewith is a copy of Resolution No. 2010-76 referenced above, which was approved by City
Council on June 21, 2010.
Thank you,
WY:dj
Attachment
c: Resolution No. 2010-76
Since.
�Y�IEXxY �tlxLt�T ublirativitz, PinC-y
The Only All Hispanic Owned Chain of Bilingual Newspapers
111 S. Avenue 59, Los Angeles, CA 90042-4211
Ph 323.341-7970 • Fax 323.341-7976 • www.egpnews.com
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA,
COUNTY OF LOS ANGELES
1 am a citizen of the United States and a resident
of the County aforementioned; I am over the age of
eighteen years, and not a party to or interested in
the. above -entitled matter. I am the principal clerk
of the printer of
EASTERN GROUP PUBLICATIONS'
EASTSIDE SUN, MEXICAN AMERICAN SUN,
NORTHEAST SUN, BELL GARDENS SUN,
VERNON SUN, COMMERCE COMET,
CITYTERRACE COMET, MONTEBELLO COMET,
MONTEREY PARK COMET,
E.L.A. BROOKLYN BELVEDERE COMET AND
WYVERNWOOD CHRONICLE,
newspapers of general circulation, printed and
published THURSDAYS in the County of Los
Angeles, and which newspaper has been adjudicated
a newspaper of general circulation by the Superior
Court of the County of Los Angeles, State of
California, under the
date of JUNE 21. 1966.
CASE NUMBER 884861;
that the notice, of which the annexed is a printed
copy (set in type not smaller than nonpareil), has
been published in each regular and entire issue of
said newspaper and not in any supplement thereof
on the following dates, to -wit:
JUNE 10,
all in the year 2010.
certify (or declare) under penalty of perjury that
the foregoing is true and correct.
Dated at LOS ANGELES, California,
this I V day of JUNE, 2010.
This space is for the County Clerk's Filing Stamp
CITY OF VERNON
Proof of Publication of
Notice of Public Hearing: Thursday, June 24,
2010 at 9:00 a.m. — to Consider the Adoption of
the Proposed Budget ... Fiscal Year 2010-2011
19nature
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The Only all Hispanic Owned Chain of Bilingual Newspapers
111 S. Avenue 59, Los Angeles, CA 90042-4211
323 341-7970 Fax: 323 341-7976 www.egpnews.com
BILL TO
City of Vernon
Kristen Enomoto, Deputy City Clerk
4305 Santa Fe Avenue
Vernon, CA 90058
Invoice
DATE
6/17/2010
SHIP TO
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NORTHEAST SUN
MEXICAN AMERICAN SUN
BELL GARDENS SUN
VERNON SUN
COMMERCE COMET
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MONTEBELLO COMET
MONTEREY PARK COMET
ELA BROOKLYN-BELVEDERE COMET
WYVERNWOOD CHRONICLE
TOTAL CIRCULATION: 106,500
City of Vernon
Kristen Enomoto, Deputy City Clerk
4305 Santa Fe Avenue
Vernon, CA 90058
INVOICE #
P.O. NO.
DUE DATE
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Placed by K.Enomoto
6/27/2010
DESCRIPTION
QTY
RATE
AMOUNT
"Notice of Public Hearing: Monday, June 21, 2010 at
2
175.00
350.00.
9:00 a.m.... to Amend the Natural Gas Rate..."
2 col. x 3.5" = 7.0 Column Inches
at $ 25.00 per column inch
_ $ 175.00 per publication date
Publication Dates:
REc
M
1) Jun 10, 2010
JUN 21
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2) Jun 17,, 2010
CITY CLER
8 OF111-{05
T As DErr_ rzo2
p,CGoc/Nr' #,
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If not paid by due date, interest charges will accrue.
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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: Monday, June 21, 2010, at 9:00 a.m., or as
soon thereafter as the matter may be heard.
PURPOSE: To amend the natural gas rate schedules and
rules for gas service for gas distributed
and supplied by the City of Vernon (the
"City") within its boundaries. These
amendments include amending the City's Gas
Municipal Utilities Department Schedules G-1
(Residential Gas Service), G-2 (Small
Commercial Gas Service), and G-3 (Large
Commercial Gas Transportation to increase
the volumetric charges.
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, the
amended rate schedules and the amended rules for gas services,
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.
Information may be obtained by contacting the office of the
City Clerk at the above address.
The hearing may be continued or adjourned or cancelled and
rescheduled to a stated time and place without further notice.
Dated: June 8, 2010 /s/
Willard G. Yamaguchi, City Clerk
//0
RECEIVED
JUN 0 7 2010
STAFF REPORT CITY CLERK'S OFFICE
Light & Power Department
DATE: June 3, 2010
TO: Honorable Mayor and City Council
Y Y
FROM: Donal O'Callaghan, Director of Light & Power
RE: Natural Gas Rate Increase
The purpose of this staff report is to propose a 19 percent increase to City of Vernon (COV)
natural gas transportation rates, effective July 1, 2010.
Background
SoCalGas increased its transportation rates to wholesale and commercial customers effective
February 1 2010. The estimated increase in SoCalGas cost to COV is nine percent, or
approximately $120,000 per year.
Additionally, as the Gas Enterprise is in its fourth year of operation, we are striving to cover its
full cost of operation. We are moving toward having it cover not only direct operating costs, but
also yet -to -be -determined administrative overhead components and depreciation of the physical
gas system. An increase in excess of nine percent is necessary to move toward covering these
costs.
The last comprehensive rate change was a decrease to all rates effective October 1, 2008. The
reason for this decrease was a reduction for COV in SoCalGas wholesale transportation costs.
Subsequently, effective September 1, 2009, we also reduced the G-2 rate (again) for small
commercial customers. This was done to help attract more customer load in that sector. COV's
entire gas rate history is attached for your reference as Table 1.
Increase in Gross Margin to the Gas Enterprise
Gross margin for the gas enterprise is defined as income remaining after 1) the cost of
wholesale gas purchases and, 2) the cost of SoCalGas transportation to deliver the purchased
gas to the COV Citygate. Gross margin is therefore funds remaining to cover the cost of
operations on the gas system. Without a rate increase, gross margin for FY11 would be
approximately $1.6 million. The 19% rate increase generates an additional $300,000 for a total
of $1.9 million per year. The attached Table 2 shows details of the calculations for our medium
and largest customers.
JUN 0 3 2010
Effect on Customer Transportation Savings
SoCalGas increased both wholesale and industrial rates on February 1. Industrial rates
increased more than 30 percent. The result is that even with the proposed rate increases,
COV's gas customers are still saving at the same level they were when we began in December
2006. Gas department staff will be contacting COV customers to notify them of the increase.
Interestingly, for medium commercial customer using 60,000 Therms per month, the monthly
billing amount will only be increased by five percent above the original COV transportation rates
put in place December 1, 2006. This, of course, is because we have had more rate decreases
than increases historically, until this 19 percent increase.
Specific Rates Proposed
The specific rates proposed are in the table below. Notice that only the volumetric charges are
being increased. The Monthly Service Charge is being held constant. This is being done to
keep the service charge values rounded. The units in the table are cents per Therm.
Present Rates
Proposed Rates
Rate
Customer Class
Service
Service
19%
Volumetric
New
Rate
Charge
Charge
Increase
G-1
Residential
$10
24.548
$10
.4.664
29.212
Small Commercial
G-2
Tier 1
$50
14.548
$50
2.764
17.312
Tier 2
6.500
1.235
7.735
Lg Com. Transport
Tier 1
11.609
2.206
13.815
G-3
Tier 2
$300
5.388
$300
1.024
6.412
Tier 3
4.020
0.764
4.784
Revised Tariff pages are attached. The only changes made are to the rates according to the
table above.
DO:db
Attachments;
Table 1: Vernon Gas Rate History
Table 2: Customer Savings and COV Margin Impact
Rate Schedule G-1
Rate Schedule G-2
Rate Schedule G-3
cc: City Clerk
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INTEROFFICE MEMORANDUM
Light & Power Department
DATE: June 3, 2010 ' . l_O
TO: Donal O'Callaghan, Director of Light & Power
FROM: Dan Bergmann, Natural Gas Manager-' -- V
SUBJECT: Natural Gas Rate Increase
Attached is a proposed Staff Report to City Council for the proposed 19 percent natural
gas rate increase. The increase is to cover increased SoCalGas transportation costs
and to move toward covering the full cost of operating the Natural Gas Enterprise.
Steps and timeline I propose are:
1. Ask the City Attorney to approve the revised Tariff pages. DONE.
2. Coordinate with the City Attorney to provide the necessary public notices. IN
PROGRESS.
3. Pat and I contact each of the 20 or so medium and largest customers to explain
the increase. BEGIN NEXT WEEK.
4. Present to Council for approval on June 21
5 New rates take effect July 1, purposely coincident with new fiscal year and in
support of the new gas enterprise budget
Attachment
' ;6:1 D
JUN 0 3 2010
B.Y: —Soo
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: $10
Transportation Charge: 29.212 Cents per Therm
Commodity Charge: Commodity Charge is equal to the City's Weighted Average Cost of Gas
calculated at the SoCalGas Citygate 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 Citygate. Bond -financed, prepaid gas may be provided to
customers at prices not to exceed market prices for monthly index price
gas. 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 contribute an amount equal to four cents per Therm
multiplied by customer's projected annual usage, not to exceed fifty percent of the total
connection cost incurred for work done by the City. Customer shall pay the balance of
costs. The total connection cost includes traffic control, trenching, piping, repaving, and
Page l of l
City of Vernon Council Resolution effective
installation of the meter, regulator(s), and other equipment required by the City. 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 effective
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 than250,000 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 17.312
Tier II Over 4,187 Therms 7.735
Commodity Charge: Commodity Charge is equal to the City's Weighted Average Cost of Gas
calculated at the SoCalGas Citygate 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 Citygate. Bond -financed, prepaid gas may be provided to
customers at prices not to exceed market prices for monthly index price
gas. 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
Page l of l
City of Vernon Council Resolution effective
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 shall be shared between
Customer and City. City shall contribute an amount equal to four cents per Therm
multiplied by customer's projected annual usage, not to exceed fifty percent of the total
connection cost incurred for work done by the City. Customer shall pay the balance of
costs. The total connection cost includes traffic control, trenching, piping, repaving, and
installation of the meter, regulator(s), and other equipment required by the City. 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 effective
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 13.815
Tier II 20,834 - 83,333 Therms 6.412
Tier III Over 83,333 Therms 4.784
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 contribute an amount equal to four cents
per Therm multiplied by customer's projected annual usage, not to exceed fifty
percent of the total connection cost incurred for work done by the City. Customer
shall pay the balance of costs. The total connection cost includes traffic control,
trenching, piping, repaving, and installation of the meter, regulator(s), and other
equipment required by the City. 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 1
City of Vernon Council Resolution effective
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. 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.
3. 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.
4. 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. -
5. 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 2
City of Vernon Council Resolution effective
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.
6. 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.
7. 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 effective
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 commercialcustomers
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 — 20833 Therms 13.815
Tier II 20,834 — 83,333 Therms 6.412
Tier III" Over 83,333 Therms 4.784
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 contribute an amount equal to four cents
per Therm multiplied by customer's projected annual usage, not to exceed fifty
percent of the total connection cost incurred for work done by the City. Customer
shall pay the balance of costs. The total connection cost includes traffic control,
trenching, piping, repaving, and installation of the meter, regulator(s), and other
equipment required by the City. 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 2010-76 effective July 1, 2010
1. As a conditionprecedent 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. 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.
3. 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' deadline's. 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.
4. 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.
5. 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
I0% 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 2010-76 effective July 1, 2010
SoCalGas Buy -Back Rate in SoCalGas Schedule G-IMB for the month in which the
excess imbalance was incurred.
(b) Under -Deliveries. Vernon shall pen -nit 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 d.oes.not imply an
obligation to facilitate imbalance tradnig
(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.
6. 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.
7. 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 2010-76 effective July 1, 2010
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: j $10
Transportation Charge: 29.212 Cents per Therm
Commodity; Charge: Commodity Charge is equal to the City's Weighted Average Cost of Gas
calculated at the SoCalGas Citygate 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 transportingthe gas to the
SoCalGas Citygate. Bond -financed, prepaid gas maybe provided to
customers at prices not to exceed market prices for monthly index price
gas. From time -to -time, the Cormmodity Charge may include a Purchased
Gas Adjustment that will be used maintain a zero sum gain to COV for gas
sales.
Commodity Administrative Fee: 0300 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 contribute an amount equal to four cents per Therm
multiplied by customer's projected annual usage, not to exceed fifty percent of the total
connection cost incurred for work done by the City.` Customer shall pay the balance of
costs. The total connection cost includes traffic control, trenching, piping, repaving, and
Page 1 of 2
City of Vernon Council Resolution 2010-76 effective July 1, 2010
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 250000 Thenns 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_m Cents per Therm
Tier I 0 - 4,187 Therms 17.312
Tier II Over 4,187 Therms 7.735
Commodity; Charge: Commodity Charge is equal to the City's Weighted Average Cost of Gas
calculated at the SoCalGas Citygate 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 Citygate. Bond -financed, prepaid gas maybe provided to
customers at prices not to exceed market prices for monthly index price
gas. From time -to -tune, 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 Thenn
Page 1 of 2
City of; Vernon: Council Resolution 2010-76 effective July 11 2010
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 shall be shared between
Customer and City. City shall contribute an amount equal to four cents per Therm
multiplied by customer's: projected annual usage, not to exceed fifty percent of the total
connection cost incurred for work done by the City. Customer shall pay the balance of
costs. The total connection cost includes traffic control, trenching, piping, repaving, and
installation of the meter, regulator(s), and other equipment required by the City. 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 Therin that SoCalGas would charge customers whose volumes
used are in violation of curtailment. The City shall not be liablefor 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,'t ransported, 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 Vemon Council Resolution 2010-76 effective July 1, 2010
76 Page 1 of 1
Juarez, Debbie
From: Enomoto, Kristen
Sent: Tuesday, June 22, 2010 5`:20 PM
To: Juarez, Debbie
Subject: New Gas Rates w/Resolution number and effective data
Attachments: G-3 LargeCommercial Gas Transportation 2010 07 01.pdf; G-1 Residential Gas 2010 07
01:pdf G-2; Small Commercial Gas 2010 07 01.pdf
Debbie,
Here are the tariff sheets I mentioned earlier that include the approving resolution number and effective
date at the bottom. Please keep them in the resolution file:
Thanks.
Kristen
From: Dan Bergmann [mailtoAan@igservice.com]
Sent: Tuesday, June 22, 2010 4:11 PM
To: Enomoto, Kristen
Subject: New Gas Rates w/Resolution number and effective data
Kristen,
Here they are.
Dan
6/22/2010