1996-225J \~PDOCS\ORD\ERCOT ORD
ORDINANCE NO. ~
AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR OF THE CITY OF
DENTON, TEXAS TO EXECUTE AN ELECTRIC RELIABILITY COUNCIL OF TEXAS,
INC. MEMBERSHIP/FUNDING AGREEMENT, BETWEEN THE ELECTRIC RELIABILITY
COUNCIL OF TEXAS, INC. AND THE CITY OF DENTON, TEXAS; AUTHORIZING
THE EXPENDITURE OF FUNDS THEREFOR; RESOLVING OTHER MATTERS
INCIDENTAL AND RELATED THERETO; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Denton, Texas has been a member of the
Electric Reliability Council of Texas, Inc. ("ERCOT") since 1969.
ERCOT is a Texas non-profit corporation formed for the purpose of
promoting the reliable operation of power systems; generally by
exchanging information concerning the planning and operation of
generation, transmission and distribution facilities; and
WHEREAS, on September 12, 1996, the membership of ERCOT voted
to adopt proposed changes in the ERCOT Articles of Incorporation
and Bylaws that require existing members to complete a new
application for membership, in the form of an Electric Reliability
Council of Texas, Inc. Membership/Funding Agreement (the "Agree-
ment''). ERCOT at that time made dramatic charges relative to its
member voting and the funding of its operations; and
WHEREAS, the City of Denton derives substantial benefit and
advantage from Its continued membership in ERCOT; and
WHEREAS, the City desires to continue ~ts membership in ERCOT
and accordingly desires to approve the Agreement as presented to
the City Council at the meeting at which th~s Resolution is
considered; NOW THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SEC~. That the Electric Reliability Council of Texas,
Inc., Membership/Funding Agreement, a copy of which is attached
hereto as Exhibit "A" and incorporated herein for all purposes,
between ERCOT and the city of Denton, is hereby approved in
substantially the form and content as set forth in Exhibit A, and
that the Mayor is authorized to execute the same.
SECTION II. That the expenditure of funds as authorized In the
agreement is hereby authorized.
~ That this ordinance shall become effective
immediately upon its passage and approval.
PASSED AND APPROVED thls the I~ day of ~, 1996.
JAC~
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
ELECTRIC RELIABILITY COUNCIL OF TEXAS, II~C.
MEMBERSH1PIFUNDING AGREEMENT
Th~s Agreement ts made, entered rotc, and effectxve thxs ~ day of _ ,, 199_ by
and Between Electric Relmbflity Council of Texas, lnc (hereafter "ERCO~') and
(hereafter called "Member'), whose address
In consideration of
the mutual covenants contained here~n, the part~es hereby agree that Member shall be ehgible for
membership status m EKCOT subject to the following terms and con&t~one
I Membership Membership in ERCOT is open to any entity whtoh meets any
of the market group definitions set forth in the Rylaws A corporation or other legal
business entity may apply for membership through an authorized officer or agent
ail be unded by al! wholesale marhet parttcipants in the
form of (l) annual fees lev~ett agatns~ vor....,
TranSmission Information Network ('ETIN") access fees, (~lt) unplanned transaction fees,
and (Iv) load ratio share allocations, all of which will be fired from time to time by the
Board of Directors in accordance with the prOvisions set forth m the Bylaws
n Membersh,p Fee~ The tuttis! voting membership fee is
3 Voting a~d Non Vot~ g. ~ -~. t,,~ is ti100 ocr year, The voting or.
em oan ncr ~ear and the r~onvotmg memoers~.,~ .,-- .-[ -~__,,-~...aid .con execution o!
..~,~-- r ' - .... '-- the first year of memoersn~P s~u,. o. ~.
nonvoting memocren~P lee lot
mbershi fees will be billed annually and shall be paid
this .4~reemeni, Thereafter, me . ~ - - -...o., ,~. ,~. otherwise prescribed by the
witht~ thirtY (30) days following receipt o! a sra~ ........ ,
Bylaws. 4 ETIN Access 1,ea, The initial ETIN access fee ts $10,000 per year for each
required site license Subscribers who, fo~ legal or other reasons, are either required to or
desire to maintain rnaltipio sites, w~li pay an access fee of $10,000 per site The accs~ fee
shall be payable in twelve (I$) equal monthly installments, the first of which shall be made
upon e~ecution of this Agreement, Read.only acceS~ will be available pursuant to
applicable FI~RC guidelines, It is intended that the ETIN shall, to the marimum extent
practicable, be self-funding, and it is not intended that ETIN access fees walt subsidize
here ore, if, as, and when paid-in ETI~V ucceeS fees exceed the
other ~COT operations, T fO.~ ......... n~.thl~ ETIN access fees for the remainder of
annual I~TIN bmigei daring any I~scu~ y=,.,, ......... .educed on
thai fisoa] year may, m the Board of Directors' sole discretion, be eliminated or or
a profits basis (lwensees who subscribe d.~ ~ng a period of temporary fee reduction
elimination will pay a prorated access fee consistent with fees paid by our. rent subscribers)
5 U~lpiw~aed Transaciw~t Fee An u~planned transaction fee of 15 cents ($0
per megawatt hour shall be aSSessed against all nnplanncd transactions Unplnnm'd
transactions are defined as any unplanned transactions except utility purchases of non-
firm power (ns that term is used in PUC Rule 23.66) from qualifying facilities At the time
an unpia~ned transaction ~s scheduled, Ihs parties to the transaction shall advise the
Independent System Operator ("ISO') of the r~ame of the party having responsibility for
payment of the unplanned transaction fee
6 Load Itatw Share Aliocc~tw~s In addition to the foregoing fees and charges,
[ur~dint[ shall al~O be p~ovided by utilities i. the fo~ m of icad ratio share allocations Such
payments will mlt~ally be ~eeponslble for funding that portion of the Board-approved
budget that is not collected through the fees described in paragraphs 3, 4, and 5 above Ail
unplanned transaction fees up to~ but not exceeding, on~-thlrd of the annual Board-
approved budget shall be credited back to the utilities on a load ratio share basis as an
· t , · ~ .... ~'~°'ee' load ratio share allocations Unplanned transaction fees exceeding
be aitscated between redits to tho ..it"se p....t on.
~oad ratio share bastS) and the ETIN budget ($0 percent).
7 Ghoz~ge~ ~n Fees The Board cf Directors wilt be responsible for setting the
membership fees, ETIN acce~ fees, unplanned transaction fee~, and load ratio share
allocations, and may raise or lower the fees and charges at any time. subject to the
restrictions set forth in the Bylaws. Such increases or decreases shall automatically
be~ome effsctivs as lo all Members without the necessity of amendmg this Agreement.
8 App~watw~ [or Memberz~p The applying entity will submit the following
~t~me with the application for membership' (0 a completed memberahip application form;
and (ii)payment of the voting or r&onvoting membership fees for the first year of
r~)vai o the appltcattsn, the Secretary will promptly notify the
memberehip. Upon app .... '.[ .......... ~ .-o~..bershW on which the name of the
applicant of the same aha w~ ~sv, e a eer~l~v,*~ o: ........
designated representative of the Member will be elated.
Cha~ e of Des~g~ated Represe~¢aZWe A member may change its representative
9. 'g ......... ~--~zed representative of the Member) to
at any time by written request (signea oy a au~y u.~,~,-, r
the Secretary.
10 l]~ll~g Dues and fees assessed and charges recurred by a Member shal! be
billed to the Member
Il Sazpe~s~o~ oz~d Exp~Iswl~ Any Member who willfully v~olates any provision of
this Agreement, the Bylaws, or any other ruts or regulation d~ly adopted by the Board of
Directors, may be reprimanded, suspended, and/or expelled by vote of the Board of
Directors. Such action will affect ati psreone deriving memberehtp pr~vileges through s~eh
Member.
ment Th~e Agreement may be amended, modified, superseded,
I$ A~ne~d ........ s hereoe may be waived only by
canceled, renewed, or extended and tt~e terms aha conw~o,* ~
a writt/en instrument executed b3 bothparZtes hereto or, in the case cfa waiver, by theparty
waiving compliance.
IN WITNESS WHEREOF, the partxes have caused tl~e Agreement to be executed az of the
day and year f~r~t written above
ELEC~ItlC RELIABILITY COUNCIL OF TEXAS, (Company)
II~C
Txtle Executave D~rector T~tle