title
RATES AND CHARGES - NATURAL GAS (B)
ORDINANCE NO. 0-02-49
An ordinance amending Chapter 27, Utilitites Article VI. Natural Gas Sec. 27-272 and Appendix A, Section Utilities (5) Natural Gas of the Gainesville Code of Ordinances by Creating a Manufactured Gas Plant Cost Recovery 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
In the Proposed Budget for the Combined Utilities System, as presented by the General Manager, a recommendation is made to create a manufactured gas plant cost recovery factor effective October 1, 2002. The cost recovery factor will be used to collect separately the costs associated with the remediation and clean up of assets acquired as part of the purchase of the Gainesville Gas System in 1990. The cost recovery factor will be $0.0207 per therm across all rate classes and will be in effect for 30 years. It will be subject to periodic review and adjustment for changes in items such as interest rates, actual costs, and sales projections. The recovery factor is currently established to recover a financed amount of $7,628,600 plus interest. The effect of this recovery on the average residential base bill is $0.73 per month. GRU's natural gas rates remain the lowest in the state even after the cost recovery factor is added.