06-C Settlement Agreement TXU - Laserfiche WebLink

Home Browse Search

DRAFT F:ATTORNEY\RESWORK\CURREN1\ TXU - Ratifvinl! Settlemtn Al!reement Res 2006 February 3. 2006 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, RATIFYING THE ACCEPTANCE OF SETTLEMENT AGREEMENT BETWEEN STEERING COMMITTEE OF CITIES SERVED BY TXU AND TXU ELECTRIC DELIVERY; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City of Paris, Paris, Texas, is a member of the Steering Committee of Cities served by TXU (Steering Committee); and WHEREAS, the Steering Committee did encourage certain member cities to initiate show cause rate proceedings against TXU Electric Delivery (Electric Delivery); and WHEREAS, Electric Delivery and the Steering Committee engaged in settlement discussions regarding abatement of any full-scale rate investigation and interim relief that may be available to Cities leading to a settlement in February 2005 that made Steering Committee members whole for their alleged excess costs associated with street lighting and water pumping in exchange for delay in Show-Cause filing requirements; and WHEREAS, Electric Delivery has desired to further extend for two years the currently scheduled June 2006 rate case filing in exchange for extension of payments to Cities under the February 2005 Agreement and other benefits to Cities; and WHEREAS, the Steering Committee and Electric Delivery have reached a Settlement Agreement that extends the previously negotiated settlement terms by two years and adds benefits to Cities, including reimbursement for participation in ERCOT and market development activities and $18 million in funds for beneficial public use as may be determined in the discretion of Steering Committee member cities and which may include, but which is not limited to, energy education for citizens, reductions in rates for city services, investments in community facilities, and investment in energy efficiency measures; and WHEREAS, current electric market constraints make it impractical to pass the potential benefits of rate reductions on to residential ratepayers, because most consumers remain on price to beat rates which are fixed by statute and rule, and the minority of consumers who have switched to service from a competitive retail electric supplier may only realize rate reduction benefits if their REP contract requires a pass-through of such rate reduction; and WHEREAS, the Steering Committee and Electric Delivery have reached a separate agreement wherein the Company will increase franchise fee factors over a four-year period producing increased revenues for each member city; and