G-02-10-24-10C4 - 10/24/2002ORDINANCE NO. 6-- 10J - /0-J y- /DC y
AN ORDINANCE AMENDING THE EXISTING ELECTRIC
FRANCHISE BETWEEN THE CITY AND ONCOR ELECTRIC
DELIVERY COMPANY, TO PROVIDE FOR A DIFFERENT
CONSIDERATION; PROVIDING AN EFFECTIVE DATE;
PROVIDING FOR ACCEPTANCE BY ONCOR ELECTRIC
DELIVERY COMPANY; FINDING AND DETERMINING THAT THE
MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO
THE PUBLIC AS REQUIRED BY LAW.
WHEREAS, Oncor Electric Delivery Company, successor in
interest to TXU Electric Company (hereinafter called "Oncor") is
engaged in the business of providing electric utility service
within the City and is using the public streets, alleys, grounds
and rights -of -ways 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 Oncor; and
WHEREAS, the City and Oncor desire to amend said franchise
ordinance to provide for a different consideration; Now Therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS:
SECTION 1: The existing electric franchise ordinance
between the City and Oncor Electric Delivery Company is hereby
amended as follows:
A. Effective January 1, 2002, the franchise fee due from
Oncor shall be a sum comprised of the following:
O:\wdox\ordinanc\02101006. DOC
(1) a charge, as authorized by Section 33.008(b) of
PURA, based on each kilowatt hour of electricity
delivered by Oncor to each retail customer whose
consuming facility's point of delivery is located
within the City's municipal boundaries and as
specified by Oncor to the City by letter dated
January 21, 2002.
(a) The franchise fee due pursuant to Section
33.008(b) of PURA shall be payable in
accordance with the existing electric
franchise; and
(2) a sum equal to four percent (4%) of gross revenues
received by Oncor from services identified in its
"Tariff for Retail Delivery Service," Section
6.1.2, "Discretionary Service Charges," items DD1
through DD24, that are for the account or benefit
of an end-use retail electric consumer.
(a) The franchise fee amounts based on
"Discretionary Service Charges" shall be
calculated on an annual calendar year basis,
i.e., from January 1 through December 31 of
each calendar year.
(b) The franchise fee amounts that are due based
on "Discretionary Service Charges" shall be
paid at least once annually on or before
April 30 each year based on the total
"Discretionary Service Charges" received
during the preceding calendar year.
B. Oncor Franchise Fee Recovery Tariff
(1) Oncor may file a tariff amendment(s) to provide
for the recovery of the franchise fee on
Discretionary Service Charges.
(2) City agrees (i) to the extent the City acts as
regulatory authority, to adopt and approve that
portion of any tariff which provides for 100%
recovery of the franchise fee on Discretionary
Service Charges; (ii) in the event the City
intervenes in any regulatory proceeding before a
federal or state agency in which the recovery of
the franchise fees on such Discretionary Service
Charges is an issue, the City will take an
3
affirmative position supporting the 100% recovery
of such franchise fees by Oncor and; (iii) in the
event of an appeal of any such regulatory
proceeding in which the City has intervened, the
City will take an affirmative position in any such
appeals in support of the 100% recovery of such
franchise fees by Oncor.
(3) City agrees to take no action, nor cause any other
person or entity to take any action, to prohibit
the recovery of such franchise fees by Oncor.
SECTION 2: In all respects, except as specifically and
expressly amended by this ordinance, the existing effective
franchise ordinance heretofore duly passed by the governing body
of the City and duly accepted by Oncor shall remain in full force
and effect according to its terms until said franchise ordinance
terminates as provided therein.
SECTION 3: This ordinance shall take effect upon its
final passage and Oncor's acceptance. Oncor shall, within thirty
(30) days from the passage of this ordinance, file its written
acceptance of this ordinance with the Office of the City
Secretary in substantially the following form:
4
To the Honorable Mayor and City Council:
Oncor Electric Delivery Company, acting by and through the
undersigned authorized officer, hereby accepts in all
respects, on this the day of the month
of , 20 , Ordinance No.
amending the current electric franchise between the City and
Oncor and the same shall constitute and be a binding
contractual obligation of Oncor and the City.
Oncor Electric Delivery Company
By:
Vice President
SECTION 4. The City Council hereby finds and declares that
written notice of the date, hour, place and subject of the
meeting at which this Ordinance was adopted was posted and that
such meeting was open to the public as required by law at all
times during which this Ordinance and the subject matter hereof
were discussed, considered and formally acted upon, all as
required by the Open Meetings Act, Chapter 551, Texas Government
Code, as amended.
5
le Honorable Mayor and City Council:
i-::- Electric Delivery Company, acting by and through the
pusrsigned authorized officer, hereby accepts in all
on this the /0015 day of the month
Ce". et` , 20 C>0-7- Ordinance No. Sj — 0,7 -- ,/D 2, Ll()C y
ding the current electric franchise between the City and
,r and the same shall constitute and be a binding
ractual obligation of Oncor and the City.
,r Electric Delivery Company
Vice President
PION 4. The City Council hereby finds and declares that
notice of the date, hour, place and subject of the
It which this Ordinance was adopted was posted and that
meeting was open to the public as required by law at all
)1. ring which this Ordinance and the subject matter hereof
,t7cussed, considered and formally acted upon, all as
by the Open Meetings Act, Chapter 551, Texas Government
Code, as amended.
READ and APPROVED on first reading this the 0 day of
t)(14,4041P,A_), 2002.
READ, APPROVED and ADOPTED on second reading this the
day ofD2b51411101,A), 2002.
ATTEST:
WE Mayor
City of Round Rock, Texas
CHRISTINE R. MARTINEZ, City Secretary
6
DATE: October 18, 2002
SUBJECT: City Council Meeting — October 24, 2002
ITEM: * 10.C.4. Consider an ordinance authorizing the Mayor to amend the existing
electric franchise agreement with Oncor Electric Delivery Company.
(Second Reading)
Resource: David Kautz, Chief Financial Officer
History:
Franchise fees are paid by the electric utility in exchange for using the
City's rights of way. As a result of the electric industry restructuring
(Senate Bill 7) and a recent lawsuit settlement between several Texas
cities (including Round Rock) and TXU Electric, the City must
consider an amendment to the current electric franchise ordinance.
The ordinance recognizes assignment of the franchise to Oncor
Electric Delivery Company and clarifies the fees to be included in the
franchise fee calculation as of January 1, 2002.
Funding:
Cost: N/A
Source of Funds: N/A
Outside Resources: Strasburger, Attorneys At Law
Impact/Benefit: Little or no impact on residential and commercial bills according to
Strasburger, Attorneys At Law and Oncor Electric
Public Comment: N/A
Sponsor: N/A