14 Motion to approve resolution authorizing continuing participation with the Steering Committee of Cities seved by Oncor

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CITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: Originating Department: Presented By: Agenda Item No.: 4-23-2008 Council Date: Finance Gene Anderson 14. 5-12-2008 RECOMMENDED MOTION: Motion to approve resolution authorizing continuing participation with the Steering Committee of Cities served by Oncor, and authorizing the payment of ten cents per capita to the Steering Committee to fund regulatory and related activities with Oncor Electric Delivery, and authorizing the City Manager to negotiate and execute all necessary documents. POLICY ISSUE~S~: Fiscal Management, Right-of Way Management BACKGROUND: The City of Paris is a member of a 109-member city coalition known as the Steering Committee of Cities Served by Oncor. The resolution approves the assessment of a ten cent per capita fee ($2,654) to fund the activities of the Steering Committee. The Steering Committee undertakes activities on behalf of municipalities for which it needs funding support from its members. Cities have original jurisdiction over the electrical transmission and distribution rates and services within their boundaries. The Steering Committee has been the primary public interest advocate before the Public Utility Commission, the Courts, and the Legislature on electrical utility regulation matters for nearly two decades. The Committee is actively involved in rate cases, appeals, rulemakings, and legislative efforts impacting the rates charged by Oncor within the City. The Committee representation is also strong at ERCOT (Electric Reliability Council of Texas). ERCOT operates the electric grid in and manages the deregulated market for 75% of the state, An example of how Paris has benefited from its membership on the Steering Committee, in 2004 the Steering Committee coordinated the activities of inember cities that initiated an investigation of Oncor's wires rates. As a result of that effort, Oncor agreed to make settlement payments to cities beginning in 2005 and ending with the entry of final order in Oncor's next rate case which is expected to be filed in 2009. To date Paris has received $241,494 that it would not have otherwise received. BOARD~COMMISSION RECOMMENDATION: NONE. EXHIBITS: Resolution authorizing membership assessment. ACTION: BUDGET INFO: ❑ Financial Report ❑ Minute Order Expense $2,654.00 ❑ Department Report ~ Resolution Budgeted Amt. $9,000.00 ❑ Presentation ❑ Ordinance Y7'D Actual $6,341.56 ❑ Public Hearing ❑ Other Acct. Name Associations Acct. Number 01-0311-11-00 City of Paris Revised 2/04/08 , ~~4~ .