2010-066FILE REFERENCE FORM 2010-066
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Amended by Ordinance No. 2010-228 09/21/10 )R
ORDINANCE NO, Z~ ~
AN ORDINANCE OF THE CITY OF DENTON, TExAS AMENDING THE DENTON
MUNICIPAL ELECTRIC RATE ORDINANCE CONTAINED IN ORDINANCE NO,
2009-21 H, SOLELY AS TO RATE RIDER ECA ENERGY COST ADJUSTMENT;
PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE;
AND PROVIDING FOR AN EFFECTNE DATE,
The City of Denton, Texas sets rates for electric energy usage and electric
services rendered for the ratepayers of Denton Municipal Electric that must take into
account many financial factors, such as the price of energy, and these factors are
constantly changing; the Public Utilities Board has received information and briefings
during three of its meetings in the year 201 and has fully discussed and now
unanimously recommends to the City Council an amendment solely to Electric Rate
ordinance -Schedule ECA, in artier to reflect and tape into account the changed financial
factors, the present needs of Denton Municipal Electric and the need to achieve rate
stabilization for its ratepayers; NOw THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1, The Schedule of Rates for electrical services as provided for in
Chapter 26 of the Denton Code of Ordinances, is amended solely by substituting the
attached Schedule ECA Energy Cost Adjustment, in lieu of and in substitution for the
previous Schedule ECA, which appeared at pages 38-39 of Ordinance Na, 2009-218,
signed and approved by the Council on September 22, 2009:
ELECTRIC RATE SCHEDULE
Pages
Schedule ECA -Energy Cost Adjustment 38-39
SECTION Z, All ordinances or parts of ordinances in force when the provisions
of this ordinance become effective which are inconsistent, or in conflict with the terms or
rovisions contained in this ordinance are hereby repealed to the extent of any such p
conflict,
SECTION 3, If any section, subsection, paragraph, sentence, clause, phrase or
word in this ordinance, or application thereof to any person or circumstances is held
invalid by any court of competent jurisdiction, such holding shall not affect the validity
of the remaining portions of this ordinance, and the City Council of the City of Denton,
Texas, hereby declares it would have enacted such remaining portions despite any such
invalidity,
SECTION 4, The amended Schedule ECA -Energy Cost Adjustment is attached
hereto as Exhibit "A" and is incorporated herewith by reference for all purposes,
SECTIGN 5. This ordinance and the rate herein adopted as the amended
Schedule ECA --Energy Cost Adjustment shall become effective, charged, and applied to
the electric services rendered by Denton Municipal Electric and all energy usage
pertaining to this rate, by customers of Denton Municipal Electric, on or after March 2,
2010, and a copy of said rates shall be maintained in the office of the City Secretary,
PASSED AND APPRGVED this the ~ day of , 2010,
MARK ; B , MAYOR
ATTEST;
JENNIFER WALTERS, CITY SECRETARY
By'
APPROVED AS TO LEGAL FGRM;
AN~TA BURGES S, CrTY ATTGRNEY
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By~
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SCHEDULE ECA
ENERGY CGST ADJUSTMENT
Effective o31~~110}
The Energy Cost Adjustment ECA} rate shall be set by the Public Utilities Board PUB}, The ECA
rate shall be reviewed on a monthly basis and adjusted as defined below to recover the variable cost
of energy delivered to customers, Variable energy cost includes the variable cost of Texas Municipal
Power Agency ~TMPA} energy excluding the portion of TMPA's energy charge associated with
fixed costs}, the variable cost of purchased energy excluding demand payments or fees for services},
and fuel costs.
ENERGY CAST ADJUSTMENT BALANCING ACCOUNT CALCULATION
The ECA Balancing Account shall be calculated using the following formula:
ECA B alancing Account = Actual plus Proj ected ECA revenue} Proj ected Energy Cost}
where:
Projected Energy Cost = Actual plus Projected cumulative cost of fuel} +~Actual plus
Projected cumulative variable cost of TMPA energy} + Actual
plus Proj ected cumulative variable purchased energy cost}.
The General Manager, Denton Municipal Electric DME} or hislher designee shall calculate the ECA
Balancing Account balance monthly, In the event that the ECA Balancing Account balance
calculated during the last month of each fiscal quarter December, March, June, and September} is
greater than or less than zero dollars ~$o} by $S,OOO,o00 or more during the next quarter, the General
Manager, DME or hislher designee shall recommend to the PUB an ECA rate adjustment sufficient to
recoverlreturn any underlover collection, and maintain DME in a financially sound position, The
PUB shall consider that recommendation and may adjust the ECA rate for the quarter immediately
following as necessary to maintain DME in a financially sound position,
ENERGY CUST ADJUSTMENT CALCULATION
ECA = ~~Projected Energy Cost} + ECA Balancing Account}~I~Projected kwh sales}
ENERGY OUST ADJUSTMENT CHARGE
The Energy Cost Adjustment Charge shall be based on actual l~wh consumption during the billing
period.
Energy Cost Adjustment Charge ~ l~wh x ECA rate
EXTRAGRDINARY C7RCUNISTANCE ECA RATE ADJUSTMENT
In the event that the ECA Balancing Account balance calculated for any month is gt.~eater than or
less than zero dollars ~$D~ by $10,000,000 or more during the next month, the General Manager,
DME or hislher designee shall recommend to the PUB an ECA rate adjustment sufficient to
recoverlreturn any underlover collection, and maintain DME in a financially sound position, The
PUB shall consider that recommendation and may adjust the ECA rate for the month immediately
following as necessary to maintain DME in a financially sound position,
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