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23-1949ORDINANCE NO. 23-1949 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 $7,064,597.73 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 Electric Transmission Texas, LLC Garland Power & L Lone Star Transmission Lower Colorado River Author S]’land Utilities Texas Municipal Power Agenc' Wind Enel Transmission Texas TOTAL $ 392,595.80 S 1 ,772,667.74 $96, 184.68 $ 541,052.77 $3,295 ,284.33 $ 224,363.90 $ 173,407.00 $ 569,041.51 $7,064,597.73 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 : SECTION 1. 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 $7,064,597.73 for the City’s obligation as a DSP in ERCOT to the following TSPs for its TCOS is authorized and payable as set forth below: Name of TSP Amount Cross Texas Transmission Electric Transmission Texas, LLC Garland Power & Ljght Lone Star Transmissi ar Lower Colorado River Authori1 Shan,land Utilities Texas Municipal Power Agenc' Wind Ener!Transmission Texas TOTAL $ 392,595.80 $ 1 ,772,667.74 $96, 184.68 $ 541,052.77 $3,295,284.33 $ 224,363.90 $ 173,407.00 $ 569,041.51 $7,064,597.73 SECTION 3. As the above payments are subject to being trued up by the PUCT 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. This ordinance shall become effective immediately upon its passage and approval. The motion to approve this ordinance was made by d'by 1/cl'; by f JL- b J: eu; }LOc tlr second€and was passed and approved by the following vote L Aye J Nay Abstain Absent Mayor Gerard Hudspeth: Vicki Byrd, District 1 :-L J- ./ JL Brian Beck, District 2: Paul Meltzer, District 3 : Joe Holland, District 4: Brandon McGee, At Large Place 5 : Chris Watts, At Large Place 6: v PASSED AND APPROVED this the 2qth day of Oc 4CbR (_, 2023. APPROVED AS TO LEGAL FORM: MACK REINWAND, CITY ATTORNEY: GERARD HUDSPETH, MAYOR By. Susan n = EXqrtdly signed by Susan Keller ellerFiilibIg!#haIE;IT"'K fbI ATTEST: JESUS SALAZAR, CITY SECRETARY L\\\It 111 Irlr