Lone Star Gas-CS 900405JAMES D NELSON
Lone Star
PO Box 151265 ° 300N. RogersRd.
Irvlng, Texas 75015-1265 · (214J 259-5226
April 5, 1990
APR 5
Ms. Dorothy Timmons
City Secretary
City of Coppell
P.O. Box 478
Coppell, Texas 75019
CITY MANAGER
To The City Secretary:
Attached is notice of a main line extension rate change previously approved
by the City Council. This rate is applied for extensions beyond the no-charge
limit provided in our franchise agreement. Direct recovery of these extra
costs from customers has helped to control the investment in our distribution
system and to keep residential rates lower than they otherwise would be.
This notice is provided in compliance with our agreement to keep the City
informed of the main line extension charge each year. The new charge of
$6.40 per foot is the standard rate for computing gas main extensions under
cash deposit contracts. This is an increase from the previous rate of $5.90.
The new charge becomes effective on May 1, 1990.
Please let me know if you need additional information regarding this matter.
There is no need for the City to take additional action on this previously
approved charge.
Sincerely,
JDN:sjs
Attachment
MAYOR AND COJNCIL
DATE:
LONE STAR GAS COMPANY
AVERAGE COST OF GAS MAIN EXTENSION
1989
Total main extension cost for pipe sizes
6" and smaller:
Total footage of main extension pipe 6"
and smaller in 1989:
Average cost of gas main extensions per foot:
Total Main Extension Cost $2,740,853
Total Footage 401,624
$2,740,853
401,624 feet
$ 6.82 per foot
Handy-Whitman trend in cost for 1989
$ 6.43 per foot
The 1990 Distribution Gas Main Extension
Contract price effective May 1, 1990:
Cash Deposit Contracts $ 6.40 per foot