City Council Agenda Report
Meeting Date: June 16, 2026
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Principal Management Analyst Subject
Amendments to Natural Gas Rule No. 14
Recommendation
Adopt Resolution No. 2026-030 Amending Natural Gas Rule No. 14 (Service Connections and Facilities on Customer’s Premises) regarding the Rules for Gas Service for gas distributed and supplied by the City within its boundaries.
Background
On October 6, 2006, the Vernon City Council adopted Resolution No. 9134, which established the Rules for the Gas Division of the Vernon Gas Municipal Utility Department. These rules outline the conditions under which Vernon Public Utilities (VPU) provides gas service to its customers. Natural Gas Rule No. 14, titled "Service Connections and Facilities on Customer’s Premises," specifically addresses the service connections and facilities that are located on a Customer's property. The proposed changes clarify the roles and responsibilities of Customers and the Utility related to service connections, installations, maintenance, and expenses for customer and Utility equipment and infrastructure.
Section A (Service Connection) states that only Utility-authorized personnel are permitted to connect or disconnect natural gas service. The Utility is responsible for the planning, design, and construction of all service connections in accordance with its standards. Additionally, all equipment from the Distribution Main to the Point of Delivery is considered Utility-owned service facilities.
Section B (Maintenance of Services) states that the Utility is responsible for constructing, owning, operating, and maintaining natural gas lines where it has legal access, with any required easements obtained by the Customer at their expense. All service facilities remain Utility property, and the Utility retains the right to access Customer property as needed to manage those facilities.
Section C (Meters and Appliances) establishes that all meters and service facilities installed by the Utility remain its property and may be repaired, replaced, or removed at its discretion. The Customer may not charge for their placement, must not tamper with them, and is responsible for protecting them and reporting any issues. The Utility may remove its equipment upon termination of service.
Section D (Connection Costs) currently utilizes a complex formula that relies on the Customer’s “projected” annual usage and “projected annual transportation revenues” to allocate costs between the City and the Customer, which could result in significant costs being assigned to the City. The fixed formula creates a liability for the utility because there is no recourse to recover any of the connection costs if the customer uses less gas than projected or terminates service soon after connection. VPU proposes revising this section by removing the fixed cost-share formula and allowing full cost recovery.
Section E (Meter Installations) establishes processes for meter installations and requires the Customer to provide an approved, accessible location for meters and related equipment, typically near the property line, unless an alternate location is justified and approved. The Utility may install communication systems for meter access and can require relocation if the meter becomes inaccessible, at the Customer’s expense.
Section F (Customer Responsible for Equipment for Receiving Natural Gas) establishes that Customers are responsible, at their own cost and risk, for installing, maintaining, and safely operating all equipment used to receive and use natural gas beyond the Point of Delivery.
Additionally, it establishes that the Utility is not liable for damages resulting from the Customer’s equipment or actions, and the Utility does not assist with operating or relighting Customer-owned appliances.
In summary, the proposed amendments to Rule No. 14 clarify the processes and define the roles and responsibilities of both Customers and the Utility regarding service connections, installations, maintenance, and expenses for customer and utility equipment and infrastructure.
On May 14, 2026, a public notice was published in the Los Angeles Wave (Huntington Park Bulletin) regarding the proposed adoption of the Resolution amending Natural Gas Rule No. 14 (Service Connections and Facilities on Customer’s Premises) (Attachment 2). In accordance with Vernon Municipal Code Section 13.28.050, the rules for gas service for the Vernon natural gas system shall be adopted by resolution of the City Council. Therefore, VPU recommends adoption of Resolution No. 2026-030 amending Natural Gas Rule No. 14 (Service Connections and Facilities on Customer’s Premises).
The proposed resolution has been reviewed and approved as to form by the City Attorney’s Office.
Gas rate schedules can be found on the City’s website in the Public Utilities section under the Rates & Fees tab. A redline of the proposed amendment to Natural Gas Rule No. 14 is provided for reference (Attachment 3).
Fiscal Impact
There is no fiscal impact associated with this report.
Attachments
1. Resolution No. 2026-030
2. Public Notice
3. Revised Natural Gas Rule No. 14 (Redline)