12 - PARIS GENERATION, LP (PGEN) WATER SERVICE AGREEMENTItem No. 12
memorandum
TO: City Council
John Godwin, City Manager
FROM: Gene Anderson, Finance Director
SUBJECT: PARIS GENERATION, LP (PGEN) WATER SERVICE AGREEMENT
DATE: June 10, 2016
BACKGROUND: Originally constructed and known as Tenaska III Texas Partners, the City has
provided water service on a contract basis to this electric utility located on Lake Crook Road
since 1989. Several renewals or rewrites of the original contract have occurred since that time
with the water rate being updated through the City's annual water and sewer rate study.
STATUS OF ISSUE: City and company officials have worked to develop a renewal of the
contract that expired May 31, 2016. This new agreement continues the two part rate structure
that is similar to the City's other industrial customers consisting of an annual demand charge and
a volumetric rate charge. In addition, the company will continue to pay a separate amount to
reserve an additional quantity of water beyond the base agreement.
The term of this contract will be three years.
BUDGET: Not affected by this action.
RECOMMENDATION: Motion to approve the proposed water service agreement with Paris
Generation, LP.