2006-013-RES-TXU - Laserfiche WebLink

Home Browse Search

AGREEMENT TO RESOLVE OUTSTANDING FRANCHISE ISSUES This Agreement To Resolve Outstanding Franchise Issues ("Agreement") is made and entered into between TXU Electric Delivery Company ("Electric Delivery") and the Steering Committee of Cities Served by TXU Electric Delivery Company on behalf of all cities listed on Exhibit A to this Agreement ("Cities"), hereinafter referred to jointly herein as "Signatories." The cities listed on Exhibit A to this Agreement are hereinafter referred to as "Member Cities." WHEREAS, several Member Cities have expressed concern about the increasing cost and complexity of managing utilities in public rights-of-way and the desire to receive increased compensation from utilities for their use of such rights-of-way; WHEREAS, several Member Cities who receive their franchise fee payments from Electric Delivery on a prospective yearly basis have expressed interest in transitioning to prospective quarterly payments; WHEREAS, the Signatories desire to resolve outstanding issues related to franchises; and WHEREAS, after extensive negotiations, the Signatories have reached a resolution of those issues. NOW, THEREFORE, the Signatories, through their undersigned representatives, hereby agree to the following: 1. The Signatories agree that this Agreement shall become effective only upon the execution of this Agreement and of the Extension and Modification of Settlement Agreement between the Signatories dated January~, 2006. The effectiveness of this Agreement shall be accomplished pursuant to the terms of paragraphs 4 and 19 of the Extension and Modification Settlement Agreement. 2. To recognize the increasing cost and complexity of managing utilities in public rights-of- way, Electric Delivery agrees to increase the franchise fee factor for each Member City on January 1, 2006, by 2%. The franchise fee factor is the amount per kilowatt hour which is multiplied times the number of kilowatt hours of electricity delivered by Electric Delivery to each retail customer whose consuming facility's point of delivery is located within the Member City's municipal boundaries. Electric Delivery will also increase the franchise fee factor to be paid to the Member Cities an additional 1% on January 1, 2007, on January 1, 2008, and on January 1, 2009, for a total potential increase of 5% above the franchise fee factor in effect on December 31, 2005. Exhibit B to this Agreement reflects the franchise fee factors in effect for all Member Cities in 2005, and the increased franchise fee factors for Member Cities provided by this paragraph for 2006,2007,2008, and 2009. 3. Electric Delivery's obligation to increase its franchise fee payments to reflect the increased franchise fee factors described in paragraph 2 ceases on the date upon which: (1) Electric Delivery is called in for a rate case by any municipality; (2) a proceeding concerning Electric Delivery's rates is initiated under Subchapters C or D of the Public Utility Regulatory Page 1