1997-336 ORDINANCE NO. ~
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, m order to comply with the legaslative requirements contained in the
Pubhc UO. hty Regulatory Act of 1995, for the payment of energy transm~ssmn service fees, the
City of Denton is required to pay such fees imposed by the Public Utilities Commission of
Texas to the fifteen hsted cities and utilities set forth an Exhibit "A"; and
WHEREAS, the City Manager has reviewed and recommended that the City Councd
approve and authorize the payment of such fees; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I. That the expenditure of funds m the amount of $434,429.50 to be paid
to the Listed Cities and Utilities 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
SECTION II. That this ordinance shall become effective immediately upon its passage
and approval.
PASSED APPROVED ,h,s ,he ,199
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
HE.RBERT ~ PROUTY, CITY.ATTORNEY
FEE OI~D
DATE NOVEMBER 18, 1997
cI'rv COIJNCHJ REPORT
TO Mayor and Members of the City Council
FROM Kathy DuBose, Executive Director of Finance
OF FUNDS FOR THE PAYMENTS BY THE CrD/O
TRANSMISSION FEES TO THOSE LISTED CITIES AND UTILITIES PROVIDING ENERGY
sMIsSlON SER CES TO
DATE PO# 81020 - CITY OF GARLAND PO # 81021 - ul i ¥ , ,
- CITY gF COLLEGE STATION, PO # 81{)23 - CITY PUBLIC SERVICE, PO # 81024 - CITY
OF GREENVILLE. PO # 81025-CENTRAL PO WER & LJ_GH_T ~C.O~ _yq ~ 8,,10S2160fsHOUT SE~
LIGHTING & POWER. PO # 81027 - PUBLIC UTILH¥ 13OAFd~, Vt) ~ ~ -
UTILITIES ELECTRIC CO )
RECOM'MENI)ATION We recommend the nme (9) purchase orders hsted above be approved m the total amount
of $434,429 50
SlJMMARY Thase purchase orders are for payme~nt of a fee l,mp°sed}y_t.h&P~uPJ~.c~U~le~nt/t~°~s~gl~
(PUCT) for pla0ned losses in transmission services ior energy uenvere~ re m~ ~.~ry vx u,~ ' ism for electrl~
~egulatory Act of 1995 (PURA 95) rectmred the development, of a new, .statew~d.e, mecn~an.
transmission selviee in Texas PURA 95 also, plae. ed mumclpal utllit,ms under,.th.,e ju~rl~dlc~o~n o,t the~,Pub~h¢
Commission of Texas (PUCT) for matters rel~tted to transmission ^s a resun, me t~lv,/or yemen ~lee. mc ?umy,
has been ordere.d by. the PUCT to pay vario...us other electric utilities in the State specmc amounts tor the pian~n,ea
losses assocmted with transmission service L/enton requires to receive energy necess.aFy to operate its system ~ne
subject PO's prowde the City of Denton the anthorlty reqmred by the Chaffer to make those payments
The Public .Utflity. Commissipn.(PUC) of Texas Subst R 23 67 requires transmission customers to pay for losses
that result/rom their use et' the transmission system The Energy Rehabih.ty Council of Texas (ERCOT) ~s
developing .a monthly_matrix based on, the tr ,a,n,, sfer. of pow~er betwe, en. zoq~ or wlttil, n zones ,using s. tan~dard lo~a...d flow
analysis technl~lUeS ~ontrol Areas snail COlleCt losses 1Tom caen boacl ~ntlty, Wfllcn incmoes the k. lty otL~enton
Municipal Utfffilas (CODMU)
The subject purchase orders will encumber funds estimated as cost for services through September 30,1998 No
funds will actually be spent until invoices are received, reviewed and approved
pROGRAMS.. I~EPARTMEN[T~; OR GROIIPSAF_FEG]~ED~ Denton Mumcipal Utlhtles
FISCAL IMPACT. Funds to meet these regulatory fee obligations are available from several Utility Department
1996/97 budget accounts They are being consolidated into account # 610-132-1032-5650-8588
Attachments Purchase Order # 81020, # 81021, # 81022, # 81023, # 81024, # 81025, # 81026, # 81027,
# 81028
Respectfully submitted
Exec'uffve Director of Finance
Prepared
Name' lom IJ ~naw, c ~'
~i~tle~P~urchaslng Agent
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