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

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STAFF REPORT ON ASSESSMENT RESOLUTION FOR STEERING COMMITTEE OF CITIES SERVED BY ONCOR Purnose of the Resolution: The City of 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 ($0.10) per capita fee to fund the activities of the Steering Commitee. Whv this Resolution is necessarv: The Steering Committee undertakes activities on behalf of municipalities for which it needs funding support from its members. Municipalities have original jurisdiction over the electric transmission and distribution rates and services within the city. The Steering Committee has been in existence since the late 1980s. It took on a formal structure in the early 1990s when cities served by TXU (since renamed as Oncor Electric Delivery Company) gave up their statutory right to rate case expense reimbursement in exchange for higher franchise fee payments. Empowered by city resolutions and funded by per capita assessments, the Steering Committee has been the primary public interest advocate before the Public Utility Commission, the Courts, and the Legislature on electric utility regulation matters for nearly two decades. In 2004, the Steering Committee coordinated the activities of 20 member cities that initiated an investigation of Oncor's wires rates. As a result of the Steering Committee's activities, the Company agreed to make settlement payments to the cities beginning in 2005. Settlement payments from Oncor will continue to be made annually through the entry of final order in the Company's next rate case (expected 2009). The Steering Committee is actively involved in rate cases, appeals, rulemakings, and legislative efforts impacting the rates charged by Oncor Electric Delivery within the City. Steering Committee representation is also strong at ERCOT. It is possible that additional efforts will be necessary on new issues that arise during the year, and it is important that the Steering Committee be able to fund its participation on behalf of its member cities. A per capita assessment has historically been used, and is a fair method for the members to bear the burdens associated with the benefits received from that membership. Explanation of "Be It Resolved" Paragraphs: 1. The City is cunently a member of the Steering Committee; this paragraph authorizes the continuation of the City's membership. 2. This paragraph authorizes payment of the City's assessment to the Steering Committee in the amount of ten cents ($0.10) per capita, based on the population figure for the City as shown in the latest TML Directory of City Officials. 3. This paragraph requires notification to the Chair of the Steering Committee, Jay Doegey, that the City has adopted the Resolution. il,~ $ 7