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HomeMy WebLinkAbout2010-066FILE REFERENCE FORM 2010-066 X Additional File Exists Additional File Contains Records Not Public, According to the Public Records Act Other FILES Date Initials Amended by Ordinance No. 2010-228 09/21/10 )R ORDINANCE No. 2010-066 AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE DENTON MUNICIPAL ELECTRIC RATE ORDINANCE CONTAINED IN ORDINANCE NO. 2009-218, SOLELY AS To RATE RIDER ECA (ENERGY COST ADJUSTMENT), - PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. The City of Denton, Texas sets rates for electric energy usage and electric services rendered for the ratepayers of Denton Municipal Electric that must take into account many financial factors, such as the price of energy, and these factors are constantly changing; the Public Utilities Board has received information and briefings during three of its meetings in the year 2010, and has fully discussed and now unanimously recommends to the City Council an amendment solely to Electric Rate Ordinance - Schedule ECA, in order to reflect and take into account the changed financial factors, the present needs of Denton Municipal Electric and the need to achieve rate stabilization for its ratepayers; Now THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The Schedule of Rates for electrical services as provided for in Chapter 26 of the Denton Code of Ordinances, is amended solely by substituting the attached Schedule ECA (Energy Cost Adjustment), in lieu of and in substitution for the previous Schedule ECA, which appeared at pages 38-39 of Ordinance No. 2009-218, signed and approved by the Council on September 22, 2009 : ELECTRIC RATE SCHEDULE Schedule ECA - Energy Cost Adjustment Pages 38-39 SECTION 2. All ordinances or parts of ordinances in force when the provisions of this ordinance become effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 3. If any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 4. The amended Schedule ECA — Energy Cost Adjustment is attached hereto as Exhibit "A" and is incorporated herewith by reference for all purposes. SECTION 5. This ordinance and the rate herein adopted as the amended Schedule ECA -- Energy Cost Adjustment shall become effective, charged, and applied to the electric services rendered by Denton Municipal Electric and all energy usage pertaining to this rate, by customers of. Denton Municipal Electric, on or after March 2, 2010, and a copy of said rates shall be maintained in the office of the City Secretary. Id PASSED AND APPROVED this the 4�- day oflAk-, 2010. ATTEST: JENNIFER WALTERS, CITY SECRETARY By-9 APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY m1p S CHEDULE E CA ENERGY COST ADJUSTMENT (Effective 03/02/10) The Energy Cost Adjustment (ECA) rate shall be set by the Public Utilities Board (PUB). The ECA rate shall be reviewed on a monthly basis and adjusted as defined below to recover the variable cost of energy delivered to customers. Variable energy cost includes the variable cost of Texas Municipal Power Agency (TMPA) energy (excluding the portion of TMPA's energy charge associated with fixed costs), the variable cost of purchased energy (excluding demand payments or fees for services), and fuel costs. ENERGY COST ADJUSTMENT BALANCING ACCOUNT CALCULATION The ECA Balancing Account shall be calculated using the following formula: Where-, ECA Balancing Account = (Actual plus Projected ECA revenue) —(Projected Energy Cost) Projected Energy Cost = (Actual plus Projected cumulative cost of fuel) +(Actual plus Projected cumulative variable cost of TMPA energy) + (Actual plus Projected cumulative variable purchased energy cost). The General Manager, Denton Municipal Electric (DME) or his/her designee shall calculate the ECA Balancing Account balance monthly. In the event that the ECA Balancing Account balance calculated during the last month of each fiscal quarter (December, March, June, and September) is greater than or less than zero dollars ($0) by $5,000,000 or more during the next quarter, the General Manager, DME or his/her designee shall recommend to the PUB an ECA rate adjustment sufficient to recover/return any under/over collection, and maintain DME in a financially sound position, The PUB shall consider that recommendation and may adjust the ECA rate for the quarter immediately following as necessary to maintain DME in a financially sound position. ENERGY COST ADJUSTMENT CALCULATION ECA =[(Projected Energy Cost) + (ECA Balancing Account)]/(Projected kWh sales) ENERGY COST ADJUSTMENT CHARGE The Energy Cost Adjustment Charge shall be based on actual lcWh consumption during the billing period. Energy Cost Adjustment Charge — IcWh x ECA rate EYTRAORDINARY CIRCUMSTANCE ECA RATE ADJUSTMENT In the event that the ECA Balancing Account balance calculated for any month is greater than or less than zero dollars ($0) by $10,000,000 or more during the next month, the General Manager, DME or his/her designee shall recommend to the PUB an ECA rate adjustment sufficient to recover/return any under/over collection, and maintain DME in a financially sound position. The PUB shall consider that recommendation and may adjust the ECA rate for the month immediately following as necessary to maintain DME in a financially sound position.