23-2262ORDINANCE NO. 23-2262
AN ORD 1-NANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING AN
EXPENDITURE OF FUNDS IN THE AMOUNT OF $926,840.18 FOR ADDITIONAL
PAYMENTS OF WHOLESALE TRANSMISSION CHARGES, SPECIFICALLY PAYMENTS
TO AMERI(_'AN ELECTRIC POWER AND GARLAND POWER & LIGHT; DECLARING A
PUBLIC PURPOSE; 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 for 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, City of Denton Ordinance No. 23-1949 authorized the expenditure of funds
for the payment of wholesale transmission charges in the amount of $7,064,597.73 to Cross Texas
Transmission, Electric Transmission of Texas, Garland Power & Light, Lone Star Transmission,
Lower Colorado River Authority, Sharyland Utilities, Texas Municipal Power Agency, and Wind
Energy Transmission Texas, Transmission Service Providers, for its TCOS; and
WHEREAS, Ordinance No. 23-1949 indicated the PUCT would perform a true up on the
amount of wholesale transmission charges for TSPs and that additional payment could be required;
and
WHEREAS, the City of Denton desires to make payment to American Electric Power and
to make additional payment to Garland Power & Light for wholesale transmission charges in
accordance with PURA and the true up performed by the PUCT; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings set forth in the above preamble to this Ordinance are true and
correct and are hereby adopted.
SECTION 2. The City Manager, or designee, is hereby authorized to make payment in the
amount of $926,840.18 for the transmission charges to American Electric Power and Garland
Power & Light which will increase the total annual payments to TSPs from $7,064,597.73 to
$7,99 1 ,437.91 .
SECTION 3. This Ordinance shall become effective immediately upon its passage and
approval.
The motion to approve this ordinance was made by b£rb,, ,L Kv asp+L ,
seconded by B,b .. du, CLR,1c McGEe, and was passed and approved by the following
vote [ 6 - C) ]:
Aye Nay Abstain Absent
Mayor Gerard Hudspeth:
Vicki Byrd, District 1 :
Brian Beck. District 2:
Paul Meltzer. District 3 :
Joe Holland. District 4:
Brandon Chase McGee, At Large Place 5 :
Chris Watts, At Large Place 6:
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PASSED AND APPROVED this the 11’"day of Deccw\bc/. 2023
GERARD HUDSPETH, MAYOR
ATTEST:
JESUS SALAZAR, CITY SECRETARY L\\\\\ tIll I///
APPROVED AS TO LEGAL FORM:
MACK RErNWAND, CITY ATTORNEY
BY:BaW7Z 3afVau, Ag Wu=c'-oUP-w'n'ol
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