14 Motion to approve resolution authorizing continuing participation with the Steering Committee of Cities seved by OncorCITY 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~ .
FISCAL NOTES:
REVIEWED AND APPROVED BY:
Z Administration Z City Clerk ❑ Community Development ❑ EMS/IT 0 Finance ❑ Fire
❑ Municipal Court Z Legal ❑ Library ❑ Police ❑ Eng./Public Wotks ❑ Utilities
City of Paris Revised 2/04/08
DRAFT
Attorney/reswork/current/ONCOR - CAPP Cities Res 08 assmnt
RESOLUTION N0.
A RESOLUTION AUTHORIZING COIVTINUED PARTICIPATION
WITH THE STEERING COMMITTEE OF CITIES SERVED BY ONCOR;
AND AUTHORIZING THE PAYMENT OF 10 CENTS PER CAPITA TO
THE STEERING COMMITTEE TO FUND REGULATORY AND
RELATED ACTIVITIES RELATED TO ONCOR ELECTRIC DELIVERY;
MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE
SUBJECT; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, the City of Paris is a regulatory authority under the Public
Utiliry Regulatory Act (PURA) and has exclusive original jurisdiction over the rates
and services of Oncor Electric Delivery Company (Oncor) within the municipal
boundaries of the city; and
WHEREAS, the Steering Committee has historically intervened in Oncor
(formerly known as TXU) rate proceedings and electric utility related rulemakings
to protect the interests of municipalities and electric customers residing within
municipal boundaries; and
WHEREAS, the Steering Committee is participating in Public Utility
Commission dockets and projects, as well as court proceedings, affecting
transmission and distribution utility rates; and
WHEREAS, the City is a member of the Steering Committee of Cities Served
by Oncor; and
WHEREAS, in order for the Steering Committee to continue its
participation in these activities which affects the provision of electric utility service
and the rates to be charged, it must assess its members for such costs;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PARIS, TEXAS:
Section 1. That the findings set out in the preamble to this resolution are
hereby in all things approved.
~f ~
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Section 2. That the City is authorized to continue its membership with the
Steering Committee of Cities Served by Oncor to protect the interests of the City of
Paris, Texas and protect the interests of the customers of Oncor Electric Delivery
residing and conducting business within the City limits.
Section 3. That it is further authorized to pay its assessment to the Steering
Committee ten cents ($0.10) per capita based on the population figures for the City
shown in the latest TML Directory of City Officials.
Section 4. That a copy of this Resolution and the assessment payment
check made payable to "Oncor Cities Steering Committee" shall be sent to Jay
Doegey, Chair, Oncor Cities Steering Committee, c/o City Attorney's Office, Mail Stop
63-0300, PO Box 90231, Arlington, Texas 76004-3231.
PRESENTED AND PASSED on this the 12th day of May, 2008, by a vote of _
ayes and _ nays at a regular meeting of the City Council of the City of Paris, Texas.
Jesse James Freelen, Mayor
Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
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(1)(146
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
Pavment of Assessment
A copy of the resolution should be mailed with payment of the fee to Jay Doegey, Chair,
Oncor Cities Steering Committee, c/o City Attorney's Office, Mail Stop 63-0300, Post Office. Box
90231, Arlington, Texas 76004-3231. Checks should be made payable to: Oncor Cities Steering
Committee.
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