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Resolution No. 2022-011RESOLUTION NO. 2022-11 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), G-3 (LARGE COMMERCIAL GAS TRANSPORTATION) AND G-4 (LARGE GAS COMMODITY) FOR GAS DISTRIBUTED AND SUPPLIED BY THE CITY WITHIN ITS BOUNDARIES SECTION 1. Recitals. A.In connection with the operation of the Vernon natural gas system, the City owns, operates and maintains a gas distribution system, which includes not only mains and appurtenances but also meters, laterals and other connection infrastructure. B. Pursuant to Section 13.28.020 of the Vernon Municipal Code, any rates or change in rates to be charged and collected for gas supplied by the Vernon natural gas system shall be set by resolution of the City Council. C. The General Manager of Public Utilities has recommended that the City Council amend Natural Gas Rate Schedule Nos. G-1 (Residential Gas Service), G-2 (Small Commercial Gas Service), G-3 (Large Commercial Gas Transportation) and G-4 (Large Gas Commodity) to reflect the rate adjustments recommended by the Cost of Service study results. D. The City Council of the City of Vernon desires to approve the Amended Rate Schedules. E. The City Council of the City of Vernon held a public hearing on May 3, 2022, to amend the Natural Gas Rate Schedule Nos. G-1, G-2, G-3 and G-4 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. F. 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 2. The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. SECTION 3. The City Council of the City of Vernon hereby revises Natural Gas Rate Schedule Nos. G-1 (Residential Gas Service), G-2 (Small Commercial Gas Service), G-3 (Large Commercial Gas Transportation) and G-4 (Large Gas Commodity), Resolution No. 2022-11 Page 2 of 25 _______________________ to read as set forth in Exhibit A to this Resolution. Such amendments shall become effective July 1, 2022. SECTION 4. All resolutions or parts of resolutions not consistent with or in conflict with this resolution are hereby repealed. SECTION 5. The City Clerk shall certify the passage and adoption of this resolution and enter it into the book of original resolutions. APPROVED AND ADOPTED this 3rd day of May, 2022. ________________________ LETICIA LOPEZ, Mayor ATTEST: LISA POPE, City Clerk (seal) APPROVED AS TO FORM: ZAYNAH N. MOUSSA, Interim City Attorney I CERTIFY THAT THE FOREGOING RESOLUTION NO. 2022-11 was passed and adopted by the City Council of the City of Vernon at the Regular meeting on May 3, 2022 by the following vote: AYES: 5 Council Members: Davis, Merlo, Ybarra, Larios, Lopez NOES: 0 ABSENT: 0 ABSTAIN: 0 ________________________________ LISA POPE, City Clerk (seal) City of Vernon Resolution No. 2022-11 Schedule G-1 effective July 1, 2022 Page 1 of 2 CITY OF VERNON NATURAL GAS DIVISION 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: $12.00 Transportation Charge: $0.3000 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: $0.0030 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 the greater of (1) 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; or (2) three times the projected annual transportation revenue to City from the account. Customer shall pay the balance of costs. The total connection cost includes traffic Resolution No. 2022-11 Page 3 of 25 ___________________ City of Vernon Resolution No. 2022-11 Schedule G-1 effective July 1, 2022 Page 2 of 2 control, trenching, piping, repaving, and installation of the meter, regulator(s), and other equipment required by the City. See also Rule 14. 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. 6. Greenhouse Gas Emissions Surcharge is calculated per Schedule G-CARB approved by City Council Resolution No. 2015–12. Resolution No. 2022-11 Page 4 of 25 ___________________ City of Vernon Resolution No. 2022-11 Schedule G-2 effective July 1, 2022 Page 1 of 2 CITY OF VERNON NATURAL GAS DIVISION Schedule G-2 COMMERCIAL GAS SERVICE APPLICABILITY This schedule is for combined gas commodity and transportation service to commercial customers using less than 250,000 Therms per year receiving Core gas service through City of Vernon’s natural gas system. This schedule is also applicable to all other non- residential customers, regardless of usage volume, that have elected Core Service. RATES Monthly Service Charge: $50.00 Monthly Transportation Charges: Rate, per Therm Tier I 0 – 4,187 Therms $0.1731 Tier II Over 4,187 Therms $0.0774 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 City for gas sales. Commodity Administrative Fee: $0.0030 per Therm Fixed Price Option: Customers with annual gas consumption above 180,000 Therms shall have the option to request a mutually agreeable fixed price on an annual basis for specific quantities (Fixed Price Gas). Fixed Price Gas shall be passed through at City’s cost plus 0.40 Cents per Therm to cover additional administrative work for customized billing and additional gas management. This 0.40 Cents per Therm is in addition to the Commodity Administrative Fee. A Fixed Price Addendum must be executed between Customer and City in order to formalize Fixed Price Gas. Customer shall be responsible for payment of Fixed Price Gas in accordance with City of Resolution No. 2022-11 Page 5 of 25 ___________________ City of Vernon Resolution No. 2022-11 Schedule G-2 effective July 1, 2022 Page 2 of 2 Vernon Contract for Gas Service, to which Customer agreed when applying for gas service in the first instance, and which incorporates by reference the City of Vernon Rules for Gas Service. SPECIAL NOTES 1. Prior to the commencement of service, 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 covered by City up to three times the projected annual transportation revenue to the City from the account. Customer shall pay the balance of the costs. The total connection costs include traffic control, trenching, piping, repaving, and installation of the meter, regulator(s), and other equipment required by the City. See also Rule 14. 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. 6. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015–12. Resolution No. 2022-11 Page 6 of 25 ___________________ City of Vernon Resolution No. 2022-11 Schedule G-2 effective July 1, 2023 Page 1 of 2 CITY OF VERNON NATURAL GAS DIVISON Schedule G-2 COMMERCIAL GAS SERVICE APPLICABILITY This schedule is for combined gas commodity and transportation service to commercial customers using less than 250,000 Therms per year receiving Core gas service through City of Vernon’s natural gas system. This schedule is also applicable to all other non- residential customers, regardless of usage volume, that have elected Core Service. RATES Monthly Service Charge: $70.00 Monthly Transportation Charges: Rate, per Therm Tier I 0 – 4,187 Therms $0.2210 Tier II Over 4,187 Therms $0.1005 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 City for gas sales. Commodity Administrative Fee: $0.0030 per Therm Fixed Price Option: Customers with annual gas consumption above 180,000 Therms shall have the option to request a mutually agreeable fixed price on an annual basis for specific quantities (Fixed Price Gas). Fixed Price Gas shall be passed through at City’s cost plus 0.40 Cents per Therm to cover additional administrative work for customized billing and additional gas management. This 0.40 Cents per Therm is in addition to the Commodity Administrative Fee. A Fixed Price Addendum must be executed between Customer and City in order to formalize Fixed Price Gas. Customer shall be responsible for payment of Fixed Price Gas in accordance with City of Vernon Contract for Gas Service, to which Customer agreed when Resolution No. 2022-11 Page 7 of 25 ___________________ City of Vernon Resolution No. 2022-11 Schedule G-2 effective July 1, 2023 Page 2 of 2 applying for gas service in the first instance, and which incorporates by reference the City of Vernon Rules for Gas Service. SPECIAL NOTES 1. Prior to the commencement of service, 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 covered by City up to three times the projected annual transportation revenue to the City from the account. Customer shall pay the balance of the costs. The total connection costs include traffic control, trenching, piping, repaving, and installation of the meter, regulator(s), and other equipment required by the City. See also Rule 14. 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. 6. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015–12. Resolution No. 2022-11 Page 8 of 25 ___________________ City of Vernon Resolution No. 2022-11 Schedule G-2 effective July 1, 2024 Page 1 of 2 CITY OF VERNON NATURAL GAS DIVISION Schedule G-2 COMMERCIAL GAS SERVICE APPLICABILITY This schedule is for combined gas commodity and transportation service to commercial customers using less than 250,000 Therms per year receiving Core gas service through City of Vernon’s natural gas system. This schedule is also applicable to all other non- residential customers, regardless of usage volume, that have elected Core Service. RATES Monthly Service Charge: $80.00 Monthly Transportation Charges: Rate, per Therm Tier I 0 – 4,187 Therms $0.2747 Tier II Over 4,187 Therms $0.1247 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 City for gas sales. Commodity Administrative Fee: $0.0030 per Therm Fixed Price Option: Customers with annual gas consumption above 180,000 Therms shall have the option to request a mutually agreeable fixed price on an annual basis for specific quantities (Fixed Price Gas). Fixed Price Gas shall be passed through at City’s cost plus 0.40 Cents per Therm to cover additional administrative work for customized billing and additional gas management. This 0.40 Cents per Therm is in addition to the Commodity Administrative Fee. A Fixed Price Addendum must be executed between Resolution No. 2022-11 Page 9 of 25 ___________________ City of Vernon Resolution No. 2022-11 Schedule G-2 effective July 1, 2024 Page 2 of 2 Customer and City in order to formalize Fixed Price Gas. Customer shall be responsible for payment of Fixed Price Gas in accordance with City of Vernon Contract for Gas Service, to which Customer agreed when applying for gas service in the first instance, and which incorporates by reference the City of Vernon Rules for Gas Service. SPECIAL NOTES 1. Prior to the commencement of service, 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 covered by City up to three times the projected annual transportation revenue to the City from the account. Customer shall pay the balance of the costs. The total connection costs include traffic control, trenching, piping, repaving, and installation of the meter, regulator(s), and other equipment required by the City. See also Rule 14. 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. 6. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015–12. Resolution No. 2022-11 Page 10 of 25 ___________________ City of Vernon Resolution No. 2022-11 Schedule G-3 effective July 1, 2022 Page 1 of 3 CITY OF VERNON NATURAL GAS DIVISION 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: $300.00 Monthly Transportation Charges: Rate, per Therm Tier I 0 – 20,833 Therms $0.1382 Tier II 20,834 – 83,333 $0.0641 Tier III Over 83,333 Therms $0.0478 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 the greater of: (1) 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; or (2) three times the projected annual transportation revenue to the City from the account. Customer shall pay the balance of costs. The total connection costs include traffic control, trenching, piping, repaving, and installation of the meter, regulator(s), and other equipment required by the City. See also Rule 14. 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. 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 Resolution No. 2022-11 Page 11 of 25 ___________________ City of Vernon Resolution No. 2022-11 Schedule G-3 effective July 1, 2022 Page 2 of 3 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 SoCalGas Buy-Back Rate in SoCalGas Schedule G-IMB for the month in which the excess imbalance was incurred. Resolution No. 2022-11 Page 12 of 25 ___________________ City of Vernon Resolution No. 2022-11 Schedule G-3 effective July 1, 2022 Page 3 of 3 (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. 8. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015-12. Resolution No. 2022-11 Page 13 of 25 ___________________ City of Vernon Resolution No. 2022-11 Schedule G-3 effective July 1, 2023 Page 1 of 3 CITY OF VERNON NATURAL GAS DIVISION 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: $300.00 Monthly Transportation Charges: Rate, per Therm Tier I 0 – 20,833 Therms $0.1398 Tier II 20,834 – 83,333 Therms $0.0648 Tier III Over 83,333 Therms $0.0486 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 the greater of: (1) 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; or (2) three times the projected annual transportation revenue to the City from the account. Customer shall pay the balance of costs. The total connection costs include traffic control, trenching, piping, repaving, and installation of the meter, regulator(s), and other equipment required by the City. See also Rule 14. 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. 1. As a condition precedent to service under this schedule, a “Natural Gas Transportation Resolution No. 2022-11 Page 14 of 25 ___________________ City of Vernon Resolution No. 2022-11 Schedule G-3 effective July 1, 2023 Page 2 of 3 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 SoCalGas Buy-Back Rate in SoCalGas Schedule G-IMB for the month in which the excess imbalance was incurred. Resolution No. 2022-11 Page 15 of 25 ___________________ City of Vernon Resolution No. 2022-11 Schedule G-3 effective July 1, 2023 Page 3 of 3 (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. 8. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015-12. Resolution No. 2022-11 Page 16 of 25 ___________________ City of Vernon Resolution No. 2022-11 Schedule G-3 effective July 1, 2024 Page 1 of 3 CITY OF VERNON NATURAL GAS DIVISION 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: $300.00 Monthly Transportation Charges: Rate, per Therm Tier I 0 – 20,833 Therms $0.1414 Tier II 20,834 – 83,333 Therms $0.0657 Tier III Over 83,333 Therms $0.0493 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 the greater of: (1) 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; or (2) three times the projected annual transportation revenue to the City from the account. Customer shall pay the balance of costs. The total connection costs include traffic control, trenching, piping, repaving, and installation of the meter, regulator(s), and other equipment required by the City. See also Rule 14. 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. Resolution No. 2022-11 Page 17 of 25 ___________________ City of Vernon Resolution No. 2022-11 Schedule G-3 effective July 1, 2024 Page 2 of 3 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 SoCalGas Buy-Back Rate in SoCalGas Schedule G-IMB for the month in which the excess imbalance was incurred. Resolution No. 2022-11 Page 18 of 25 ___________________ City of Vernon Resolution No. 2022-11 Schedule G-3 effective July 1, 2024 Page 3 of 3 (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. 8. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015-12. Resolution No. 2022-11 Page 19 of 25 ___________________ City of Vernon Resolution No. 2022-11 Schedule G-4 effective July 1, 2022 Page 1 of 2 CITY OF VERNON NATURAL GAS DIVISION Schedule G-4 LARGE COMMERCIAL GAS COMMODITY APPLICABILITY This schedule is for gas commodity service to large customers receiving transportation service under Schedules G-4 through City of Vernon’s natural gas system. RATES Monthly Service Charge: $300.00 Monthly Transportation Charges: Rate, per Therm Tier I 0 – 20,833 Therms $0.1382 Tier II 20,834 – 83,333 Therms $0.0641 Tier III Over 83,333 Therms $0.0478 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 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 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. The Commodity Administrative Fee shall also be added. Customized Price: Customers eligible for this Rate Schedule G-4 shall also have the option to Option: request mutually agreeable fixed prices, indexed prices, and other customized pricing options for specific months and quantities (Customized Price Gas). Customized prices shall be passed through at COV’s cost from its supplier(s), plus the Commodity Administrative Fee. Commodity Administrative Fee: $0.0030 per Therm Resolution No. 2022-11 Page 20 of 25 ___________________ City of Vernon Resolution No. 2022-11 Schedule G-4 effective July 1, 2022 Page 2 of 2 SPECIAL CONDITIONS 1. As a condition precedent for a large commercial gas commodity service, a “Natural Gas Commodity Agreement” must be executed between COV and Customer. This agreement shall provide specific terms and conditions consistent with COV’s natural gas tariff. 2. 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. 3. 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 COV. 4. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015-12. Resolution No. 2022-11 Page 21 of 25 ___________________ City of Vernon Resolution No. 2022-11 Schedule G-4 effective July 1, 2023 Page 1 of 2 CITY OF VERNON NATURAL GAS DIVISION Schedule G-4 LARGE COMMERCIAL GAS COMMODITY APPLICABILITY This schedule is for gas commodity service to large customers receiving transportation service under Schedules G-4 through City of Vernon’s natural gas system. RATES Monthly Service Charge: $1250.00 Monthly Transportation Charges: Rate, per Therm Tier I 0 – 20,833 Therms $0.1625 Tier II 20,834 – 83,333 Therms $0.0712 Tier III Over 83,333 Therms $0.0530 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 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 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. The Commodity Administrative Fee shall also be added. Customized Price: Customers eligible for this Rate Schedule G-4 shall also have the option to Option: request mutually agreeable fixed prices, indexed prices, and other customized pricing options for specific months and quantities (Customized Price Gas). Customized prices shall be passed through at COV’s cost from its supplier(s), plus the Commodity Administrative Fee. Commodity Administrative Fee: $0.0030 per Therm Resolution No. 2022-11 Page 22 of 25 ___________________ City of Vernon Resolution No. 2022-11 Schedule G-4 effective July 1, 2023 Page 2 of 2 SPECIAL CONDITIONS 1. As a condition precedent for a large commercial gas commodity service, a “Natural Gas Commodity Agreement” must be executed between COV and Customer. This agreement shall provide specific terms and conditions consistent with COV’s natural gas tariff. 2. 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. 3. 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 COV. 4. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015-12. Resolution No. 2022-11 Page 23 of 25 ___________________ City of Vernon Resolution No. 2022-11 Schedule G-4 effective July 1, 2024 Page 1 of 2 CITY OF VERNON NATURAL GAS DIVISION Schedule G-4 LARGE COMMERCIAL GAS COMMODITY APPLICABILITY This schedule is for gas commodity service to large customers receiving transportation service under Schedules G-4 through City of Vernon’s natural gas system. RATES Monthly Service Charge: $2,150.00 Monthly Transportation Charges: Rate, per Therm Tier I 0 – 20,833 Therms $0.1835 Tier II 20,834 – 83,333 Therms $0.0825 Tier III Over 83,333 Therms $0.0610 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 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 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. The Commodity Administrative Fee shall also be added. Customized Price: Customers eligible for this Rate Schedule G-4 shall also have the option to Option: request mutually agreeable fixed prices, indexed prices, and other customized pricing options for specific months and quantities (Customized Price Gas). Customized prices shall be passed through at COV’s cost from its supplier(s), plus the Commodity Administrative Fee. Commodity Administrative Fee: $0.0030 per Therm Resolution No. 2022-11 Page 24 of 25 ___________________ City of Vernon Resolution No. 2022-11 Schedule G-4 effective July 1, 2024 Page 2 of 2 SPECIAL CONDITIONS 1.As a condition precedent for a large commercial gas commodity service, a “Natural Gas Commodity Agreement” must be executed between COV and Customer. This agreement shall provide specific terms and conditions consistent with COV’s natural gas tariff. 2. 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. 3. 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 COV. 4. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015-12. Resolution No. 2022-11 Page 25 of 25 ___________________ City Council Agenda Item Report Submitted by: Adriana Ramos Submitting Department: Public Utilities Meeting Date: May 3, 2022 SUBJECT Proposed Changes in Gas Utility Rates Recommendation: Adopt Resolution No. 2022-11 amending Natural Gas Rate Schedule Nos. G-1 (Residential Gas Service), G-2 (Small Commercial Gas Service), G-3 (Large Commercial Gas Transportation), and G-4 (Large Commercial Gas Commodity) for gas distributed and supplied by the City within its boundaries. Background: The Natural Gas Division of Vernon Public Utilities (VPU) serves as an important resource for the City’s business community, providing reliable, high-quality service at some of the lowest rates in the State. At its inception in 2006, the Natural Gas System was constructed to give Vernon customers an alternative, cost effective gas utility option as well as provide service to the Malburg Generating Station. Since 2012, when the Natural Gas System served 30 customers, VPU has been able to connect 85 new customers to bring its current customer account to a total of 115. Over the past several years, VPU has seen significant increases in costs associated with regulatory directives. Additionally, VPU has begun planning to proactively address infrastructure needs as the system begins to age. As such, the Natural Gas Division experiences a shortfall in recovering all necessary labor, maintenance, supplies, administrative and capital costs utilizing the current rates. It is important to note that in the last decade rates have not been adjusted. To ensure VPU’s Gas Enterprise remains safe and reliable while providing responsive service to the community, on July 7, 2020, the City Council approved an agreement with NewGen Strategies & Solutions, LLC (NewGen) to conduct a Gas Enterprise Cost of Service Study (Study) and to provide Rate Adjustment Recommendations. This analysis was essential to better understand and plan for both the existing and future operational, maintenance and capital needs as well as costs associated with providing continued exceptional service. The Study consisted of a comprehensive analysis that evaluated operating expenses and compiled a projection of future financial needs to recover the costs of operating the gas utility. The assessment identified mechanisms needed to meet the revenue requirement while ensuring that VPU maintains a competitive advantage in the market over its competitor(s). The Study considered the importance of maintaining VPU’s goal to continue providing exceptional, affordable, responsive, and reliable gas service. Results of the Study indicated an anticipated shortfall of approximately $1,800,000 per year to the Natural Gas Enterprise Fund. In order for the Natural Gas Enterprise Fund to adequately recover its costs to conduct business and cover expenses associated with regulatory directive compliance, labor, maintenance, supplies, administrative costs, and necessary capital investments, it is essential that VPU recover the deficit by implementing rate adjustments. The Study recommended that rate adjustments be applied to all Commercial rate classes of natural gas customers; G-1 Residential customers were not included as there are no customers in the class, G-2 Small Commercial Gas Service, G-3 Large Commercial Gas Transportation, and G-4 Large Commercial Gas Commodity. To minimize the impact of the proposed rate adjustments on the customer base, the Study recommended that the adjustments be phased in over a three-year period. As part of the recommendations, instead of implementing a rate adjustment in the initial year (Phase 1) and to minimize the impact to its customers, VPU is proposing to first eliminate customers' existing Utility Users Tax (UUT) credit of 5 percent, resulting in revenues of $584,486 that would be applied toward the Natural Gas Enterprise Fund operating deficit. UUT credit is a credit paid to customers by VPU to make the UUT increase passed by Measure R in 2018 cost neutral on the customer bill. For the second year (Phase 2), rate adjustments are proposed as follows: 5.7% for G-2 Small Commercial Gas Service, 1% for G-3 Large Commercial Gas Transportation, and 4.6% for G-4 Large Commercial Gas Commodity customers. Phase 2 would result in $571,720 of additional revenue. In the final year (Phase 3), rate adjustments are proposed as follows: 5.6% for G-2 Small Commercial Gas Service, 1% for G-3 Large Commercial Gas Transportation, and 4.6% for G-4 Large Commercial Gas Commodity customers. This final phase would provide VPU with an additional $594,245 in revenue. Accordingly, the proposed three-year phased rate adjustments will help to sufficiently close the budget gap that presently exists in the Natural Gas Enterprise Fund. It is also important to note that even with the proposed three-year phased rate adjustments, VPU’s gas rates are anticipated to maintain a significant competitive advantage over SoCalGas rates, calculated to be 15 to 30 percent less (at a minimum). SoCalGas has historically raised rates every three years and is expected to do so in the coming months. VPU also has plans to increase the number of natural gas customers in the next few years, which will further maintain the competitive rate advantage for its customer base and provide much needed revenue support for the Natural Gas Division operation. To ensure transparency and keep its customers informed, VPU staff presented the results of the Gas Enterprise Cost of Service Study and Rate Adjustment Recommendations to the Business and Industry Commission (BIC) at its February 10, 2022 meeting. The presentation was well received, and City Council approved staff's recommendation to receive and file the BIC presentation at its March 1, 2022 meeting. Additionally, on March 16, 2022, VPU held a Community Stakeholders' Meeting to present the findings and the recommendations of the Study and Recommended Rate Adjustments. The forum was available virtually and in-person. Overall feedback from attendees was positive and support of the proposed rate adjustments was conveyed. Per Vernon Municipal Code (VMC) Section 13.28.020 pertaining to the Vernon Natural Gas System, “any rates or change in the rates to be charged and collected for gas supplied by the Vernon natural gas system shall be set by resolution of the City Council.” Therefore, VPU staff is seeking approval and adoption of the proposed resolution modifying Natural Gas Rate Schedules G-1 (Residential Gas Service), G-2 (Small Commercial Gas Service), G-3 (Large Commercial Gas Transportation), and G-4 (Large Commercial Gas Commodity) to reflect the rate adjustments recommended per the Cost of Service Study results. Pursuant to Government Code Section 54354.5, a public hearing notice was posted at City Hall on April 14, 2022 and published on April 14 and 21, 2022 in the Los Angeles Wave (Huntington Park Bulletin). The proposed resolution has been reviewed and approved by the City Attorney’s Office. If approved, the proposed rate adjustments will become effective on July 1, 2022. Gas rate schedules can be found on the City’s website in the Public Utilities section under the Rates & Fees tab. Fiscal Impact: Approval and adoption of the proposed resolution will result in an increase in revenue of approximately $584,486 in Fiscal Year (FY) 2022-2023, $571,720 in FY 2023-2024, and $594,245 in FY 2024-2025 for the Natural Gas Enterprise Fund. Attachments: 1. Resolution No. 2022-11 2. Notice of Public Hearing 3. Natural Gas Cost of Service Study Letter 4. Revised Natural Gas Rate Schedule (Redline)