§ 110.056. RATES ESTABLISHED.

(A) Application. This section shall apply to any person, firm or corporation supplying gas service to the City and the inhabitants thereof. Any such person, firm or corporation shall be hereinafter referred to as the gas franchise holder or holder.

(B) Classes of service. The gas franchise holder shall provide two classes of service to its customers as hereinafter specified and defined.

(1) Firm gas service.FIRM GAS SERVICE is defined as gas service that is supplied on a noninterruptible basis. Firm gas service shall be made available to all customers whose maximum space heating requirements are less than 1,000 cubic feet per hour.

(2) Interruptible gas service.INTERRUPTIBLE GAS SERVICE is defined as gas service that is supplied on an interruptible basis. It shall be subject to curtailment or interruption on demand of the gas franchise holder whenever necessary to protect the service of its firm gas customers.

(C) Rates. Any gas franchise holder shall not, after the effective date of this section, charge more for gas services than has been authorized by resolution of the City Council.

(D) Adjustments for cost of purchased gas.

(1) In the event the rates to be charged by the gas franchise holder for any natural or supplemental gas purchased by it on a firm supply basis for resale in the City are increased or decreased, either temporarily or permanently, the rates prescribed by the resolution of the City Council establishing rates may be increased and shall be decreased correspondingly to reflect the change in the cost of firm gas, the increase or decrease to be effective not earlier than the effective date of the increase or decrease in rates charged to the franchise holder.

(2) Any refund, including interest thereon, if any, received by the franchise holder from its supplier in respect to any increased rates paid by the gas franchise holder subject to refund and applicable to gas purchased on a firm supply basis for resale in the City shall be refunded to its local gas franchise holder customers in the form of credits on the customer’s bill or in cash to the extent the increased rates paid by the franchise holder were passed on to the local firm gas customers.

(3) In the event, after the effective date of this section, the business of the gas franchise holder shall be subjected to any additional taxes measured by its gross revenues from the operation of the business on the volume of the business or constituting a fee for carrying on the business or in the event that the rate of any such tax or the amount of any such fee shall be increased after the effective date of this section, the gas franchise holder shall be entitled to increase its charges as previously set by resolution so as to offset the additional imposition or impositions of the increase.

(E) Interruptible gas service rate.

(1) Availability. This rate is available only on a contract basis to customers whose requirements for gas amount to 1,000 cubic feet or more per hour and who install and maintain sufficient standby fuel to take care of customer’s entire requirements during periods of curtailment of the use of gas by the gas franchise holder in order to protect the service of its firm gas users.

(2) Rate. The rate for interruptible gas service shall be such rate as may be mutually agreed upon between the customer and the gas franchise holder but shall not be higher than the firm gas service rate that may be in effect from time to time.

(3) Other contracts. The gas franchise holder may enter into written contracts with any customer or class of customer making application therefor without discrimination for special gas service for commercial and industrial uses at such rates and on such conditions as the contracting parties may agree.

(‘63 Code, § 4-4-2) (Ord. 2743, passed 11-3-80; Am. Ord. 96-04, passed 2-19-96; Am. Ord. 00-06, passed 2-25-00)