2005-038A-ORD PROVIDING ORDINANCE NO 2001-033 WHICH GRANTED FRANCHISE FOR ELECTRIC SERVICE TO TEXAS UTILITIES ELECTRIC COMPANY

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ORDINANCE NO. 2005-038 A AN ORDINANCE OF THE CITY COUNCIL OF _HE CITY OF PARIS, PARIS, TEXAS, PROVIDING THAT ORDINANCE NO. 2001-033, WHICH GRANTED A FRANCHISE FOR ELECTRIC SERVICE TO TEXAS UTILITIES ELECTRIC COMPANY, PREVIOUSLY KNOWN AS ONCOR ELECTRIC DELIVERY COMPANY, NOW KNOWN AS TXU ELECTRIC DELIVERY COMPANY, BE EXTENDED FORA PERIOD OF TWELVE (12) MONTHS PENDING NEGOTIATION OF A NEW FRANCmSE; PROVIDING FOR CONTINUED COMPENSATION; PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS WITH OTHER ORDINANCES; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Paris and TXU Electric Company, previously known as Oncor Electric Delivery Company, now known as TXU Electric Delivery Company, have previously entered into Ordinance No. 2001-033 granting TXU Electric Company a franchise to provide electric service within the city litnits of the City of Paris; and, WHEREAS, the aforesaid franchise agreement has previously been extended for a period of one (I) year to allow the City and the Company the opportunity to assess the impact of such regulatory changes prior to negotiation of a new franchise and will expire by its own terms in July of2005; and, WHEREAS, as a result of significant changes in the State of Texas regulatory scheme for regulating electric service providers within the State ofTexas, franchise provisions currently existing in franchise agreements may no longer be applicable or may require significant revision; and, WHEREAS, similarly because of the changes in regulations applicable to the transmission and distribution of electric power within the State of Texas, the scheme for remitting compensation to municipalities for the use of their easements and rights-of-ways in providing such electric service is subject to review and possible revision; and, WHEREAS, Company annually prepays the electric franchise fee in accordance with the mutual agreement of City and Company but contrary to the written language of said Ordinance; and, WHEREAS, Company reaffirms its agreement to continue to negotiate in good faith with City for development and approval of a new franchise agreement, and City and Company desire to extend said Ordinance; and, WHEREAS, as a result of these significant changes, and the accompanying uncertainty with regard to appropriate franchise revisions, the City of Paris and Oncor Electric Delivery Cornpany desire to extend their current franchise for an additional twelve (12) months to enable the respective parties to negotiate and discuss revisions for a new franchise agreement; NOW, THEREFORE,