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WHEREAS, TMPA owns and operates the Gibbons Creek Steam Electric Station ("Gibbons
Creek Plant") in Grimes County, Texas;
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WHEREAS, because PUCT approved transmission rates are adopted on a calendar year
basis, designating September 1, 2018 as the date to make changes in transmissian charge
responsibility will create accounting difficulties and may prove impracticable;
WHEREAS, due to such difficulties, the Parties desire to waive the September 1, 2018
implementation date and to instead designate January 1, 2019 as the date ta begin implementing such
changes;
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SECTION 4. This ordinance shall become effective immediately upon its passage and
approval.
' and seconded
b to approve tlus resolution was_made by ...., ��/�....�._, ����and ap
The motion I
y� g eQ /� �j���5 the resolution was }assed proved by the
followm vote � 0
Aye Nay Abstain Absent
Chris Watts, Mayor: ✓
Gerard Hudspeth, District 1: ✓
Keely G. Briggs, District 2: ���'
Don Duff, District 3: Y�
John Ryan, District 4: �"'
Dalton Gregory, At Large Place 5:
Paul Meltzer, At Large Place 6: ✓
��`"
PASSED AND APPROVED this the ��� day of �����! ��� a�� 2018.
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CHRIS �°,�TTS, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
��)"�li��� �,� TO LEGAL FORM:
��:�'�� LEAL, CITY ATTORNEY
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BY: � ��
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This Waiver Agreement Relating to the Giabal Settlement Agreement (the "Waiver
Agreement") is made and entered into by and between the Texas Municipal Power Agency (the
"Agency"), a municipal corporation and political subdivision of the State af Texas established
pursuant ta the provisians af Chapter 163 of the Texas Utilities Code, and the City of Bryan, the
City of Denton, the City of Garland, and the City of Greenville, Texas, each of which cities is a
municipal corporation of the State of Texas and a hame rule city (herein callectively "Cities" ar
individually 66City99) (callectively, the 66Parties"), to be effective as af the Effective Date set forth
in the recitals belaw.
The Parties have previously entered inta the Global Settlement Agreement, effective
December 17, 2009, as amended by Amendment Na. 1 to the Glabal Settlement Agreement,
effective September 15, 2016 ("Amendment No. 1"). Amendment No. 1 is no longer af any force
or effect because the proposed asset purchase agreement contemplated by Amendment No. 1 was
not executed and did not close.
The Global Settlement Agreement pravides that, commencing after September 1, 2018, the
Agency will discontinue paying the postage stamp delivery charges associated with the sale af
pawer and energy from Gibbons Creek, and that, also after such date, the Cities wi11 became
responsible for paying such charges directly to transmissian providers (such date, the 66Delivery
Charges Date").
Because the PUC approved transmission rates are adopted on a calendar year basis,
designating September 1, 2018, as the Delivery Charges Date will create accounting difficulties
and may prove impracticable and, accardingly, the Parties desire to waive the requirement that the
Delivery Charges Date accur on September 1, 2018, to enable TMPA ta charge the rates set by the
PUC for calendar year 2018 as fnal rates until December 31, 2018, and beyond, on an interim
basis and subject to refund or surcharge, in accordance with the terms of the arder setting such
rates, until but not beyond the date upon which f�nal matrix rates set by the PUC for 2019 become
effective.
The "Effective Date" of this Waiver Agreement shall be the date that this Waiver
Agreement is approved and executed by the last Party to approve this Waiver Agreement.
NOW, THEREFORE, in consideration of the recitals set forth above, the mutual
covenants, benefits, agreements and obligations of the Parties, as set forth herein, the Agency and
each City, each intending to be legally bound, agree as follows:
Section 1. For purposes of this Waiver Agreement:
"2019 Matrix Date" means the date on which fnal rates as set by the PUC in its order
adopting the ERCOT wholesale transmission charge matrix for calendar year 2019 become
effective.
Sectran 2. The Parties hereby waive the requirement that the Delivery Charges Date
occur an September 1, 201$, and agree to extend such date to the 2019 Matrix Date, so that TMPA
may charge wholesale transmission charges for delivery of Gibbons Creek-supplied power and
energy in accordance with the PUC's order adopting the 2018 matrix until the 2019 Matrix Date.
Effective with the 2019 Matrix Date, TMPA shall exclude transmission costs from any rates
charged to the Cities for power or energy, and each City shall pay individually all wholesale
transmission costs associated with delivery ofpower from Gibbons Creek to each City's points of
delivery, shall be responsible for paying such charges directly to transmission providers, and shall
not seek reimbursement of such costs from TMPA.
Section 3. In the event the PUC's 2019 Matrix order is not adopted by January 1, 2019,
the Agency shall continue to bill for transmission service in accordance with the 2018 Matrix
Order, and shall be responsible for and make such surcharges and/or refunds as may be required
by the PUC, such that the Agency shall have paid 100% of such refunds or surcharges for payments
made in 2019 under the 2018 Matrix Order, in accordance with the PUC's 2018 and 2019 matrix
orders. Similarly, each City shall be responsible for and pay such refunds or surcharges as may be
required of each City for transmission services provided in 2019, but initially billed on an interim
basis under the 2018 Matrix Order, in accordance with the PUC's 2019 Matrix Orders, such that
each City shall have paid 100% of such charges for delivery of power and energy from TMPA to
each City effective as of the 2019 Matrix Date.
Section 4. OTHER AGREEMENTS.
(a) All other terms and conditions of the Global Settlement Agreement shall remain in full
force and effect.
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CITY OF DENTONro '"l ! e����
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Approved as to form: II � ��; ��°'" �` q~„�.�°
Counsel for the City ���i��'����1�:�� " ����Nw �"�"�
CITY OF GARLAND, TEXAS
BY� ...........
Name:
Title:
Date:
Attest:
CITY OF GREENVILLE, TEXAS
By' --
Name:
Title:
Date:
Attest:
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GEUS, acting on behalf of the City af Greenville pursuant to its Charter
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Title: Chair of the Baard af Trustees of the Electric Utility Board
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Attest: