93-032 ORD AMENDING EXISTING FRANCHISE BETWEEN COP AND TEXAS UTILITIES ELECTRIC COMPANY
ORDINANCE N.U. 93_n,12
AN ORDINANCE OF THE CITY OF PARIS, PARIS, TEXAS, AMENDING THE
EXISTING FRANCHISE BETWEEN THE CITY AND TEXAS UTILITIES
ELECTRIC COMPANY TO PROVIllE FOR A DIFFERENT CONSIDERATION;
PROVIDING AN EFFECTIVE DA'IE; PROVIDING FOR ACCEPTANCE BY
TEXAS UTILITIES ELECTRIC COMPANY; FINDING ANll DETERMINING
THAT THE MEETING TO WHICH THIS ORDINANCE IS PASSED IS OPEN TO
THE PUBLIC AS REQUIRED BY LtiW; AND DECLARING AN EMERGENCY.
WHEREAS, Texas Utilities Electric Company (hereinafter
called "TU Electric") is engaged in the business of providing
electric utility service within the City of Paris, Paris,
Texas (hereinafter called "CITY") and is using the public
streets, alleys, grounds and rights-of-way within the CITY
for that purpose under the terms of a franchise ordinance
heretofore duly passed by the governing body of the CITY and
duly accepted by TU Electric; and
WHEREAS, TU Electric has, pursuant to said franchise
ordinance, been paying to the CITY a sum equal to three
percent (3%) oi its gross receipts from the retail sale of
electric power and energy within the CITY for the rights and
privileges set forth in said franchise ordinance and, in
addition thereto, has reimbursed the CITY for its ratemaking
expenses pursuant to Sect:ion 24 of the Public Utility
Regulatory Act; and
WHEREAS, the C1TY and TU Electric desire to amend said
franchise ordinance to provicle for a different consideration
to consist of a sum equal to four percent (4%) of its gross
receipts from the retail sale of electric power and energy
within the CITY, which different consideration includes,
among other things, TU Electric's obligation to reimburse the
CITY for its ratemaking and other regulatory expenses to be
incurred by the CITY involving the regulation of TU Electric;
NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS:
Section l. The consideration payable by TU Electric
for the rights and privileges granted to TU Electric by the
franchise ordinance heretofore duly passed by the governing
body of this CITY and duly accepted by TU Electric is hereby
changed to be four percent (4%) of its gross receipts from
the retail sale of electric power and energy within the
corporate limits of the CITY, said changed percentage to be
applied to said gross receipts beginning on June l, 1993, and
being payable as specified in said franchise ordinance and
based upon the same time periods as specified in said
franchise ordinance and being payment for the said rights and
privileges during the period specified in said tranchise
ordinance, said payment being in lieu of and shall be
accepted as payment for all of TU Electric's obligations ta
pay municipal charges, fees, rentals, pole rentals, wire
taxes, inspection fees, easement taxes, franchise taxes,
certain regulatory expenses under Section 24 of the Public
Utility Regulatory Act or any similar or successor law, or
other charges and taxes of every kind, except ad valorem
taxes, sales and use taxes, and special taxes and assessments
ior public improvements.
Section 2. TU Electric shall make a one-time payment
hereunder for the purpose of making the changed consideration
as specified in Section 1 hereof effective on June 1, 1993,
without altering the payment dates specified in said
franchise ordinance heretofore duly passed by the governing
body of this CITY and duly accepted by TU Electric, said
one-time payment being due and payable thirty (30) days after
TU Electric's acceptance of this ordinance as provided in
Section 6 hereot, and being a sum calculated as follows: (a)
TU Electric shall determine the monthly average of its gross
receipts from the retail sale of electric power and energy
within the CITY during the period upon which the most recent
franchise payment made to the CITY prior to June 1, 1993, was
based; (b) the said monthl.y average of its gross receipts
shall be multipled by 1% (0.01); and (c) the product so
calculated shall be multiplied by the number of whole months
from June 1, 1993, through the last day oi the last month of
the period for which the most recent franchise paymerit made
to the CITY prior to June l, 1993, was made.
Section 3. Notwithstanding anything to the contrary
in Section 1 hereof, if TU Electric files a general rate case
and the CITY incurs cumulative expenses, otherwise
reimbursable by TU Electric under Section 24 of the Public
Utility Regulatory Act or si.milar or successor law, in excess
of $4 million, then in such event, TU Electric shall
reimburse all of the expenses incurred by the CITY in
connection with all general rate cases filed during the
period ended fifteen (15) years from the effective date
hereof in excess of said $4 million. The term "general rate
case" as used in this Section means a rate case initiated by
TU Electric in which it seeks to increase its rates charged
to a substantial number of its customer classes in the CITY
and elsewhere in its syst:em and in which TU Electric's
overall revenues are determined in setting such rates. CITY
agrees to exercise reasonable best efforts, considering the
facts and circumstances, ta keep its expenses on average to
under $1,000,000 per general rate case.
Section 4. Notwithstanding the provisions of Section
1 hereot, TU Electric will continue to reimburse the CITY'S
ratemaking expenses, if any, in connection with the appeal
and any remand af Public Utility Commission of Texas Docket
No. 9300 that are otherwise reimbursable under Section 24 of
the Public Utility Regulatory Act, and will continue to
reimburse the CITY'S ratemaking expense, if any, in
connection with Public Utility Commission of Texas Docket No.
11735 that are otherwise reimbursable under Section 24 of the
Public Utility Regulatory Act to the extent that said
ratemaking expenses are incurred through the entry of the
last action by the Public Utility Commission of Texas (i.e.,
the said Commission's order overruling the last motion for
rehearing) in said Docket No. 11735; the CITY hereby agrees
that any ratemaking expenses incurred in connection with said
Docket No. 11135 that the CITY incurs on appeal of said order
will by the CITY'S sole responsibility and further agrees
in the event that the CITY is a participant in the joint
intervention of cities managed by the Steering Committee of
TU Electric Service Area Cities intervening in Docket No.
11735, that the CITY decides to continue to participate with
the Steering Committee in such appeal of said order, and TU
Electric is required to reimburse said Steering Committee for
ratemaking expenses under Section 24 of the Public Utility
Regulatory Act that are incurred on appeal of said order in
Docket No. 11735 to reimburse TU Electric the CITY'S share
of reimbursable expenses related to said appeal and owed by
TU Electric to said Steeri.ng Committee determined by the
methodology chosen by the said Steering Committee (the CITY
to notify TU Electric of the method so chosen by the Steering
Committee prior to the submission of an invoice by the
Steering Committee for the payment by TU Electric of said
reimbursable expenses related to said appeal).
Section 5. Notwithstanding the provisions of Section
3 hereof, in the event that the City of Dallas incurs
cumulative expenses in connection with general rate cases
filed by TU Electric during the next fifteen (15) years in
excess of $4 million and TU Electric reimburses the City of
Dallas such excess, then, in that event, TU Electric will
reimburse you your reasonable expenses actually incurred that
are otherwise reimbursable under Section 24 of the Public
Utility Regulatory Act, Article 1446c, V.A.T.S. (the "PURA"),
limited, however, to an amount calculated in accordance with
the following formula:
A = [(B - $4,000,000) = B] x C,
where:
A= The amount reimbursable to the City;
B= The total amount of expenses incurred by the
City of Dallas during the term of TU Electric's
current franchise with the City of Dallas in
connection with general rate cases filed by TU
Electric, which expenses would be reimbursable
under Section 24 of the PURA except for the terms
of said franchise, but excluding all such expenses
incurred in connection with Public Utility
Commission of Texas Dockets Nos. 9300 and 11735;
and
C= The total amount of expenses incurred by you
during the term of TU Electric's current franchise
with the City of llallas in connection with general
rate cases filed by TU Electric, which expenses
would be reimbursable under Section 24 of the PURA
except for the terms of your franchise amendment,
but excluding all such expenses iticurred in
connection with Public Utility Commission of Texas
Dockets Nos. 9300 and 11735.
Section 6. In all respects, expect as specifically
and expressly amended by this ordinance, the said franchise
ordinance heretofore duly passed by the governing body of
this CITY and duly accepted by TU Electric shall remain in
full force and effect according to its terms until said
franchise ordinance terminates as provided therein.
Section 7. This ordinance shall take effect from and
after its final passage and TU Electric's acceptance. TU
Electric shall, within fifteen (15) days from the passage of
this ordinance, file its written acceptance of this ordinance
with the Office of the City Clerk in substantially the
following form:
TO THE HONORABLE NIAYOR AND CITY CUUNCIL:
Texas Utilities Electric Company (TU
Electric), acting by and through the undersigned
authorized officer, hereby accepts, on this the
day of , 1993, Ordinance No.
amending the current franchise between
the CITY and TU Electric. Further, in recognition
of the fact that the current franchise between the
CITY and TU Electric terminates prior to the
expiration of fifteen (15) years from the effective
date of said amendment, TU Electric hereby agrees
to negotiate in good faith with the CITY for a new
tranchise to be effective on or before the
termination of the current franchise and to include
in said new franchise a provision that will give
the CITY the full benefit of the fifteen (15) year
period provided for in Section 3 of said amendment.
TEXAS UTILITIES ELECTRIC COMPANY
By:
Presi ent
Section 8. It is hereby officially found and
determined that the meeting at which this ordinance is passed
is open to the public as required by law and that public
notice of the time, place and purpose of said meeting was
given as required.
Section 9. An emergency exists necessitating the
suspension of any rule requiring multiple readings of this
ordinance and all multiple readings of this ordinance are
hereby waived.
INTRODUCED AND READ at a regular meeting of the City
Council of the City of Paris at the Council Chambers thereof
on the 8th day of July, 1993; read at a regular meeting of
the City Council of the City of Paris at the Council Chambers
thereof on the 12th day of July, 1993; and third and final
reading at a regular meeting of the City Council of the City
of Paris at the Council Chambers thereot on the 9th day of
August, 1993, the last reading being not less that thirty
(30) days from the first.
FINALLY, passed and adopted by the City Co ncil of the
City of Paris, at a regular meeting, this the Vth day
of August , 1993.
Vorg , Fis er, Mayor
ATTEST:
~
Mattie Cunningham, Ci Clerk
APPROVED AS 0 FORM:
~
. K. H e, City Attorney