title
PURCHASED NATURAL GAS ADJUSTMENT (B)
Ordinance No. 0-07-70
AN ORDINANCE AMENDING CHAPTER 27, SECTION 27-273, PURCHASED GAS ADJUSTMENT, OF THE GAINESVILLE CODE OF ORDINANCES BY AMENDING THE HANDLING OF THE TRUE-UP CORRECTION FACTOR; PROVIDING A REPEALING CLAUSE; PROVIDING DIRECTIONS TO THE CODIFIER; PROVIDING A SEVERABILITY CLAUSE; AND, PROVIDING AN EFFECTIVE DATE IN ACCORDANCE WITH THE SCHEDULE PROVIDED HEREIN.
recommendation
The City Commission adopt the proposed ordinance.
explanation
Background:
The purchased gas adjustment is revised monthly based on actual and projected fuel costs and natural gas sales. Any over or under collections are adjusted with a six-month seasonal true up. In times of dynamic fuel prices, this true up methodology may cause large imbalances that aren't returned to customers until the following year. This proposed revision would allow staff to modify this true up on a monthly basis as needed to mitigate large over and under collections. The formula for calculating the purchased gas adjustment will remain otherwise unchanged.
The changes will be applied to bills rendered after 12:01 A.M., October 1, 2007.