HomeMy WebLinkAbout24-2035ORDINANCE NO. 24-2035
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE
EXPENDITURE OF FUNDS FOR THE PAYMENT OF WHOLESALE TRANSMISSION
CHARGES IN THE TOTAL AMOUNT OF $9,437,871.69 AND, PROVIDING AN EFFECTIVE
DATE
WHEREAS, all Distribution Service Providers (“DSP”) in the Electric Reliability Council
of Texas (“ERCOT”) are required under the Texas Public Utility Regulatory Act (“PURA”) to
compensate Transmission Service Providers (“TSPs”) for their wholesale transmission charges,
commonly referred to as Transmission Cost of Service (“TCOS”), after the same have been filed
with and approved by the Public Utility Commission of Texas (“PUCT”); and
WHEREAS, the City of Denton, acting under the trade name of Denton Municipal Electric,
is a DSP in ERCOT; and
WHEREAS, the City is required to compensate the following TSPs for its TCOS as set
forth below:
Name of TSP Amount
American Electric Power
City of Bryan
Cross Texas Transmission
Electric Transmission Texas, LLC
Garland Power & Ljght
Lone Star TransmissiM
Lower Colorado River Authori
Sharyjand Utilities
Texas Munic ll Power Agenc-
Wind Eno Transmission Texas
TOTAL
$1 ,376,897.60
$75 ,456.16
$ 428,249.90
$ 1 ,962,084.80
$ 217,164.61
$ 590,189.21
$3,727,680.19
$ 244,739.82
$ 189,155.20
$ 626,254.20
$9,437,871.69
WHEREAS, the amounts due to the above TSPs are trued up by the PUCT and may require
additional compensation by the City to one or more of the above TSPs; and
WHEREAS; the City Manager has reviewed the above TCOS submitted by the TSPs and
recommended that the City Council approve and authorize the payment of the same; NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The facts, circumstances and recitations contained in the preamble of this
ordinance are found and declared to be true and correct.
SECTION 2. The total expenditure of funds in the amount of $9,437,871.69 for the City’s
obligation as a DSP in ERCOT to the following TSPs for its TCOS is authorized and payable as
set forth below:
Name of TSP Amount
American Electric Power
C of Bryan
Cross Texas Transmission
Electric Transmission Texas, LLC
Garland Power & Ljght
Lone Star Transmissi ar
Lower Colorado River Author
Shi 'land Utilities
Texas Municipal Power Agenc'
Transmission TexasWind Ene
TOTAL
$ 1 ,376,897.60
$75 ,456.16
$ 428,249.90
$ 1 ,962,084.80
217, 164.61
$ 590,189.21
§3,727,680.19
$ 244,739.82
$ 189,155.20
$ 626,254.20
$9,437,871 .69
SECTION 3. As the above payments are subject to being trued up by the PUCT the
additional expenditure of funds, if required, is authorized. However, this additional expenditure is
specifically limited to each TSP receiving additional payments not to exceed five percent (5%) or
less of the payment set forth in Section 2 above. Payments in excess of this specific limitation will
require further approval by City Council.
SECTION 4. This ordinance shall become effective immediately upon its passage and
approval.
The motion to approve this ordinance was made by Brian Beck,
seconded by Vicki Byrd, and was passed and approved by the following vote [ 7 - 0 ] :
Aye
X
Nay Abstain Absent
Mayor Gerard Hudspeth:
Vicki Byrd, District 1 :X
X
X
X
X
X
Brian Beck, District 2:
Paul Meltzer, District 3 :
Joe Holland, District 4:
Brandon McGee, At Large Place 5 :
Jill Jester, At Large Place 6:
PASSED AND APPROVED this the 22nd day of October, 2024.
GERARD HUDSPETH, MAYOR
ATTEST:
LAUREN THODEN, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
MACK REINWAND, CITY ATTORNEY
BY: Sqm#7 KeLLer