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1991-0832336L NO 9/ 083 AN ORDINANCE AUTHORIZING THE DIRECTOR OF UTILITIES TO EXECUTE CONTRACTS WITH ELECTRIC UTILITY CUSTOMERS TO REDUCE ELECTRICAL POWER DEMAND, AUTHORIZING CRLDITS ON UTILITY BILLS FOR CUSTOMERS WHO EXECUTE SUCH CONTRACTS, AND PROVIDE AN EFFECTIVE DATE WHEREAS, the City Council of the City of Denton, Texas hereby finds that the reduction of consumption of peak electric power serves a public purpose by allowing the City to postpone the construction of additional generation facilities, and WHEREAS, the City Council, acting upon the recommendation of City staff and the Public Utility Board, desires to reduce electrical power demand by the customers of the City of Denton Utilities, and WHEREAS, the City Council finds that the offering of electric utility bill credit incentives to customers who agree to reduce peak demand upon request by the City would reduce electric demand and the efficient utilization of the City's existing electric power utility system would be enhanced, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That based upon the findings set forth in the pream-b e- areof, the City Council hereby authorizes the City Manager to establish a program to provide electric utility bill incentives at a rate not to exceed twenty-four dollars ($24 00) per kw demand to City of Denton customers who execute contracts authorizing the City to interrupt power under the terms and conditions set forth in the contracts, the program being authorized for the months of July, August and September of each year SECTION II That the Executive Director of Electric Util t es s ereby authorized to execute such contracts on behalf of the City SECTION III That this ordinance shall become effective imme ate y upon its passage and approval PASSED AND APPROVED this the o?/;f day of , 1991 ATTEST JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM DEBRA A DRAYOVITCH, CITY SS 3071L AGREEMENT FOR TEMPORARY REDUCTION IN DEMAND The City of Denton, Texas, a Home Rule City situated in Denton County, Texas, hereinafter called "CITY", acting herein by and through its Executive Director of Utilities, Robert E Nelson and , whose address is , hereinafter called U OMER," hereby mutua y agree as follows 1 APPLICATION This Agreement is applicable only when CUS- TOMER receTvservice during the months of July, August and September, 1991, when service is subject to load reductions of a minimum of one-hundred KW (100KW) upon two hours notification by telephone by CITY'S Representative The CITY and CUSTOMER have determined the estimated peak loads for the months of July, August and September, 1991, for CUSTOMER to be as follows Peak Demand KW Address 2 DEFINITIONS The following definitions shall apply to this Agreement Peak KW Demand The actual or estimated peak KW usage, whichever is greater, for the months of July, August and September, 1991, based on historical billing records plus esti- mates of changes in load, equipment, etc Maximum Demand During Reduction Customer's maximum (or peak) deman t at occurs during re uction(s) requested by the city Demand Reduction Peak KW Demand less Maximum Demand Dur- ing Reduction Utility's Peak Da The day on which the maximum KW de- mand is p ace on t Se entire electrical system 3 SERVICES TO BE PERFORMED The City has a public interest in reducing the Sy-st-e-m--pe-alFM in order to maximize the effi- ciency of its utility system and thus, agrees to pay CUSTOMER twenty-four ($24 00) dollars per KW demand for a one time reduc- tion of at least one-hundred KW (100 KW) during the months of July, August and September, 1991 CUSTOMER calculates the Maxi- mum Estimated Reduction in Demand to be an estimated KW The actual reduction shall based upon measurements afTen Fy City's representative CITY agrees to monitor its system load and determine if a reduction in peak KW is required CITY shall notify CUSTOMER by telephone not later than twelve noon of a day if such reduction is required during that day CUSTOMER agrees to acknowledge such request and reduce its load for that day between the hours of 2 00 o'clock p m and 7 00 o'clock p m 4 GENERAL BILLING INFORMATION CUSTOMER will be charged ac- cording to t e current rate schedule applicable to the CUSTOMER for the months of July, August and September, 1991 A credit shall be applied to CUSTOMER S October, 1991 bill, which shall be calculated as follows Peak KW Minimum Demand July-September, 1991 KW LESS Maximum Demand During Reduction(s) ( xx )KW Total Demand Reduction xx KW x $24 00 Total Credit $ xx xx 5 MISCELLANEOUS CUSTOMER is granted a one-time exemption whereby CUSTOMER need not reduce demand by at least 100 KW from its peak KW demand If the CUSTOMER'S one-time exemption is the Utility's Peak Day, this contract becomes void and shall terminate immediately If the CUSTOMER fails, when requested, to reduce its peak demand more than 100 KW on more than one occasion, this Agreement becomes void 6 TERM This Agreement is in effect for the period begin- ning JuTy T, 1991 and ending at midnight, September 30, 1991 EXECUTED this day of CUSTOMER (Name) Address City/State/Zip Code Telephone Number Account Number Meter Number Contact Person APPROVED AS TO LEGAL FORM DEBRA A DRAYOVITCH, CITY ATTORNEY 1991 CITY OF DENTON, TEXAS BY E NELSON , EXECUTIVE DIRECTOR OF UTILITIES BY 2951L AGREEMENT FOR TEMPORARY REDUCTION IN DEMAND The City of Denton, Texas, a Home Rule City situated in Denton County, Texas, hereinafter called "CITY", acting herein by and through its Executive Director of Utilities, Robert E Nelson and , whose address is , ere na ter ca a OMER," hereby mutua y agree as follows 1 APPLICATION This Agreement is applicable only when CUSTOMER reams service during the months of July, August and September, 1991, when service is subject to load reductions of a minimum of one-hundred KW (100KW) upon two hours notification by telephone by CITY'S Representative The CITY and CUSTOMER have determined the estimated peak loads for the months of July, August and September, 1991, for CUSTOMER to be as follows Peak Demand KW Address 2 DEFINITIONS The following definitions shall apply to this Agreement Peak KW Demand The actual or estimated peak KW usage, whichever is greater, for the months of July, August and September, 1991, based on historical billing records plus estimates of changes in load, equipment, etc Maximum Demand Durin Reduction Customer's maximum (or peak) deman t at occurs during re uction(s) requested by the City Demand Reduction Peak KW Demand less Maximum Demand Dur- ing Reduction Utility 's Peak Da The day on which the maximum KW demand Is placed on t e entire electrical system 3 SERVICES TO BE PERFORMED The City has a public interest in reducing the system peak K in order to maximize the effi- ciency of its utility system and thus, agrees to pay CUSTOMER twelve ($12 00) dollars per KW demand for a one time reduction of at least one-hundred KW (100 KW) during the months of July, August and September, 1991 CUSTOMER calculates the Maximum Estimated Reduction in Demand to be an estimated KW The actual reduction shall based upon measurements t-aFe-n by City's representative CITY agrees to monitor its system load and determine if a reduction in peak KW is required CITY shall notify CUSTOMER by telephone not later than twelve noon of a day if such reduction is required during that day CUSTOMER agrees to acknowledge such request and reduce its load for that day between the hours of 3 00 o'clock p m and 7 00 o'clock p m 4 GENERAL BILLING INFORMATION CUSTOMER will be charged according to the current rate schedule applicable to the CUSTOMER for the months of July, Au ust and September, 1991 A credit shall be applied to CUSTOMER S October, 1991 bill, which shall be calculated as follows Peak KW Minimum Demand July-September, 1991 KW LESS Maximum Demand During Reduction(s) ( xx )KW Total Demand Reduction xx KW x $12 00 Total Credit $ xx xx 5 MISCELLANEOUS CUSTOMER is granted a one-time exemption whereby CUSTOMER need not reduce demand by at least 100 KW from its peak KW demand If the CUSTOMER'S one-time exemption is the Utility's Peak Day, this contract becomes void and shall terminate immediately If the CUSTOMER fails, when requested, to reduce its peak demand more than 100 KW on more than one occasion, this Agreement becomes void 6 TERM This Agreement is in effect for the period begin- ning July T, 1991 and ending at midnight, September 30, 1991 EXECUTED this day of CUSTOMER Name Address City/State/Zip Code Telephone Number Account Number Meter Number 1991 CITY OF DENTON, TEXAS BY ontact Person APPROVED AS TO LEGAL FORM DEBRA A DRAYOVITCH, CITY ATTORNEY BY R NELSON, EXECUTIVE DIRECTOR OF UTILITIES PAGE 2