1997-227 AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE EXPENDITURE
OF FUNDS FOR THE PAYMENTS BY THE CITY OF DENTON FOR ELECTRICAL ENERGY
TRANSMISSION FEES TO THOSE LISTED CITIES AND UTILITIES PROVIDING ENERGY
TRANSMISSION SERVICES TO THE CITY OF DENTON, AND PROVIDING AN EFFECTIVE
DATE
WHEREAS, in order to comply w~th the legislative reqmrements contmned in the Public
Utihty Regulatory Act of 1995, for the payment of energy transm~ssion service fees, the City of
Denton is requtred to pay such fees unposed by the Pubhc UtilitiEs Comm~sslon of Texas to the fifteen
hsted crees and utihties set forth m Exlubit "A", and
WHEREAS, the City Manager has reviewed and recommended that the City Council approve
and authorize the payment of such fees, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION l_ That the expenditure of funds in the amount of $507,570 69 to be paid to the
Listed Cities and Utihties in the specified amount shown on Exhibit "A", which is attached to and
made a part of this ordinance for all purposes, Is hereby authorized
SECTID. H_IL That this ordinance shall become effective lmmedmtely upon its passage and
approval
F^SSED AND AFFROVED th,s the/ aay 1997
JAC~I~ILLER, MAYOR
ATTEST:
,IENNIFER WALTERS, CITY SECRET AR Y
APPROVED AS TO LEGAL FORM
HERBERT L CITY ATTORNEY
BY
EXHIBIT "A"
PO # 76728 -- TEXAS UTILITIES - $297,543.48
PO # 76729 -- TEXAS-NEW MEXICO POWER - $989.41
PO # 76730 -- SOUTHWESTERN ELECTRIC - $200.24
PO # 76731 -- CITY OF COLLEGE STATION - $90.68
PO # 76732 -- TEXAS MUNICIPAL POWER ASSOCIATION - $64,872.66
PQ # 76733 -- BRAZOS ELECTRIC - $39,407.49
PO # 76734 -- SOUTH TEXAS ELECTRIC CO-OP - $2,106 74
PO # 76735 -- MEDINA ELECTRIC CO-OP ~ $242 10
PO # 76736 -- LOWER COLORADO RIVER AUTHORITY - $18,778 73
PO # 76737 -- HOUSTON LIGHTING & POWER - $33,607 88
PO # 76738 -- WEST TEXAS UTILITIES - $10,016.69
PO # 76739 -- MAGIC VALLEY ELECTRIC CO-OP - $13 27
PO # 76740 -- CENTRAL POWER & LIGHT - $25,022.50
PO # 76741 -- CITY PUBLIC SERVICE - $8,100.73
PO # 76742 -- CITY OF AUSTIN ELECTRIC UTILITY - $6,578.09
2
DATE August 19, 1997
CITY COUNCIl. REPORT
TO Mayor and Members of the City Councd
FROM Kathy DuBose, ExecuUve Director &Finance
SUBJECT PURCHASE ORDER # 76728 - TEXAS UTILITIES
PURCHASE ORDER # 76729 - TEXAS-NEW MEXICO POWER
PURCHASE ORDER # 76730 - SOUTHWESTERN ELECTRIC
PURCHASE ORDER # 76731 - CITY OF COLLEGE STATION
PURCHASE ORDER # 76732 - TEXAS MUNICIPAL POWER ASSOCIATION
PURCHASE ORDER # 76733 - BRAZOS ELECTRIC
PURCHASE ORDER # 76734 - SOUTH TEXAS ELECTRIC CO-OP
PURCHASE ORDER # 76735 - MEDINA ELECTRIC CO-OP
PURCHASE ORDER # 76736 - LOWER COLORADO RIVER AUTHORITY
PURCHASE ORDER # 76737 - HOUSTON LIGHTING & POWER
PURCHASE ORDER # 76738 - WEST TEXAS UTILITIES
PURCHASE ORDER # 76739 - MAGIC VALLEY ELECTRIC CO-OP
PURCHASE ORDER # 76740 - CENTRAL POWER & LIGHT
PURCHASE ORDER # 76741 - CITY PUBLIC SERVICE
PURCHASE ORDER # 76742 - CITY OF AUSTIN ELECTRIC UTILITY
RECOMMENDATION. We recommend the fifteen (15) purchase orders listed above be approved m the total
amount of $507,570 69
SUMMARY, These purchase orders are for payment of a fee ~mposed by the Public Utility Commlss~on of Texas
(PUCT) for planned losses ~n transmission services for enarg~ dehvered to the C~ty of Denton The Pubhc Utthty
Regulatory_Act of 1995 (PURA 95) req.mred the d.evelgpment ora .new, stat, ew~de, m~e.cha_m~s ,m fo_r e!ectn~c transmlss~o%
servmeln lexa~ PURA~5a~s~J~ace~mun~c~pa~ut~t~sunaertl~e~ur~s~IctI~n~fthet~u~ucUtuIty~mmIss~n~r
Texas (PUCT) for mattars related to transmission As a result, the C2ty of Denton Elecmc Utd~ty has been ordered by
the PUCT to pay various other electric utthtles m the State spem/tc amounts for the planned Iosses associated w~th
transmission serytce D.enton reqmres to recewe energy necessa.ry to operate tts system The subject PO's provide the
C~ty of Denton the anmonty required by the Charter to make U~ose payments
The Pubhc Utility Comm~sston (PUC) &Texas Subst R 23 67 requires transmission customers to pay for loses that
result from their use of the transm~ssjon system .The Energy Reha'bthtyCouncfl of Texas (ERCOT) is developing a
monthly matrix based on thy t. rans, t, er bt power between zones or w~th!n ,zones using standard load flow analys~s
techniques C0ntrol Areas snan couect losses from each Load Entity, wmcn includes the C~ty of Denton Mumc~pal
Uuht~es (CODMU)
The subject purchase order, s wall encumber funds, estimated,as c,ost for serymes through September 30,1997 No funds
will actually bm spent until ~nvolces are receweu, revleweu uno approveu
PROGRAMS: I}EPARTMENTS OR GROUPS AFFECTED. Denton Mumclpal Utfl~tms
F~kCAI,~iP~I~: Funds to meet these reg~. latory fee obhgatmns are avadable from several Utility Department
1996/97 budget accounts They are being consohdated into account # 610-132-1032-5650-8588
Attachments Purchase Order # 76728, # 76729, # 76730, # 76731, # 76732, # 76733, # 76734, # 76735,
# 76736, # 76737, # 76738, # 76739, # 76740, # 76741, #76742
~bmltted
lqa~y Du~
Exec't~t~e'Dlrector of Finance
Name Tom D Sllaw, C F M
T~tle Purchasing Agent
910 A~ENDA
3
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