HomeMy WebLinkAbout26-1587ORDINANCE NO. 26-1587
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 $9,804,564.14 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");
WHEREAS, the City of Denton, acting under the trade name of Denton Municipal Electric,
is a DSP in ERGOT;
WHEREAS, the City is required to compensate the following TSPs for its TCOS as set
forth below:
Name of TSP Amount
American Electric Power
$ 1,827,074.09
Cross Texas Transmission
375,056.45
Electric Transmission Texas, LLC.
1,951,478.33
Garland Power & Light
197,048.54
Lone Star Transmission
539,731.25
Lower Colorado River Authority
3,830,035.38
Sharyland Utilities
261,807.61
Texas Municipal Power Agency
173,251.58
Wind Energy Transmission Texas
649,080.91
TOTAL
$ 9,804,564.14
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:
SECTIONI. 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 $9,804,564.14 for the City's
obligation as a DSP in ERCOT to the following TSPs for their TCOS is authorized and payable as
set forth below:
Name of TSP
American Electric Power
$ 1,827,074.09
Cross Texas Transmission
375,056.45
Electric Transmission Texas, LLC.
1,951,478.33
Garland Power & Light
197,048.54
Lone Star Transmission
539,731.25
Lower Colorado River Authority
3,830,035.38
Sharyland Utilities
261,807.61
Texas Municipal Power Agency
173,251.58
Wind Energy Transmission Texas
649,080.91
TOTAL
$ 9,804,564.14
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 Suzi Rumohr
seconded by George Ferrie , and was passed and approved by the following
vote [- 0
Aye Nay Abstain Absent
Mayor Chris Watts:
Jordan Villarreal, District 1:
Nick Stevens, District 2:
Suzi Rumohr, District 3:
Joe Holland, District 4:
George Ferrie, At Large Place 5:
Jill Jester, At Large Place 6:
PASSED AND APPROVED this the 13th day of October , 2026.
t
CHRIS WATTS, MAYOR
ATTEST:
KRISTI GILBERT, CITY SECRETARY
:•
APPROVED AS TO LEGAL FORM:
MACK REINWAND, CITY ATTORNEY