20-2194ORDINANCE NO.20-2194
AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE
EXPENDITURE OF FUNDS FOR THE PAYMENT OF WHOLESALE TRANSMISSION
CHARGES IN THE TOTAL AMOUNT OF $7,181,039.73 AND, PROVIDING AN EFFECTIVE
DATE
WHEREAS, all Distribution Service Providers (“DSP”) in the Electric Reliability Council
of Texas (“ERCOT”) are required under the Texas Public Utility Regulatory Act (“PURA”) to
compensate Transmission Service Providers (“TSPs”) for its wholesale transmission charges,
commonly referred to as Transmission Cost of Service (“TCOS”), after the same have been filed
with and approved by the Public Utility Commission of Texas (“PUCT”);
WHEREAS, the City of Denton, acting under the trade name of Denton Municipal Electric,
is a DSP in ERCOT;
WHEREAS, the City is required to compensate the following TSPs for its TCOS as set
forth below:
Name of TSP Amount
Cross Texas Transmission
LLCme ric Transmission Tex,
Lone Star Transmission
Lower Colorado River Authori
Oncor-NTU
Sh:land Utilities
Power AgencyTexas Munici
Transmission TexasWind Ellen
TOTAL
$ 399,259.10
$ 1 ,63 1 ,973.60
$ 526,358.89
$2,433, 186.82
$1, 163 ,374.13
$ 187,022.37
239, 164.95
$ 600,699.87
$7, 181 ,039.73
WHEREAS, the amounts due to the above TSPs are trued up by the PUCT and may require
additional compensation by the City to one or more of the above TSPs; and
WHEREAS; the City Manager has reviewed the above TCOS submitted by the TSPs and
recommended that the City Council approve and authorize the payment of the same; NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTIONI. The facts, circumstances and recitations contained in the preamble of this
ordinance are found and declared to be true and correct.
SECTION 2. The total expenditure of funds in the amount of $7, 181,039.73 for the City’s
obligation as a DSP in ERCOT to following TSPs for its TCOS is authorized and payable as set
forth below:
Name of TSP Amount
Cross Texas Transmission
LLCElectric Transmission Tex,
Lone Star Transmission
Lower Colorado River Authori'
Oncor.NTU
'land UtilitiesSh.
Texas Municipal Power Agenc'
Wind Enet Mnission Texas
TOTAL
$ 399.;9.10
$1,63 1 ,973.60
$ 526,358.89
$2,433, 186.82
$1 , 163 ,374.13
$ 187,022.37
$ 239,164.95
$ 600,699.87
$7,181,039.73
SECTION 3. That as the above payments are subject to being trued up by the PUt’T the
additional expenditure of funds, if required, is authorized. However, this additional expenditure is
specifically limited to each TSP receiving additional payments not to exceed five percent (5%) or
less of the payment set forth in Section 2 above. Payments in excess of this specific limitation will
require further approval by City Council.
SECTION 4. That this ordinance shall become effective immediately upon its passage and
approval.
Aye
./
Nay Abstain Absent
Mayor Chris Watts:
Gerard Hudspeth, District 1 :V/
Keely G. Briggs, District 2:V/
/
V/
Jesse Davis, District 3 :
John Ryan, District 4:
Deb Arnintor, At Large Place 5: a
Paul Meltzer, At Large Place 6: /
PASSED AND APPROVED this the IO tb day of NO\JedIbe(
2020.
.)
CHRIS WATTS, MAYOR
ATTEST:
ROSA RIOS9 CITY SECRETARY
By: Mayor Pro Tem Gerard Hudspeth
APPROVED AS TO LEGAL FORM:
MRON LE,ALS CITY ATTORNEY
An I IIU