2005-062ORDINANCE NO. 200S-
AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR THE
AMENDMENT OF THE INDUSTRIAL DEVELOPMENT RDER (SCHEDULE DR) TO
THE SCHEDULE OF ELECTRIC RATES CONTAINED IN ORDINANCE NO. 2004-386;
THE PURPOSE OF WHICH AMENDMENT TO THE ABOVE RECITED RATE SCHEDULE
IDR BEING TO CLEARLY EXPRESS THE POLICY OF THE CITY COUNCIL
REGARDING THE QUALIFICATION FOR SUCH RATE; PROVIDING FOR A
REPEALER; PROVDING FOR A SEVERABILITY CLAUSE; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of Denton, Texas has included an Industrial Development Rider in
its electric rate schedules for a number of years. This rate schedule has always been intended as
a method to facilitate economic growth in the City by encouraging its industrial growth; and
WHEREAS, this amendment to ordinance amends electric rate Schedule DR to provide
additional qualifications for an electric ratepayer to qualify for the rate. The ratepayer must be
subject to City of Denton ad valorem tax payment and the ratepayer must not receive any other
discounts on their electric service, other than the discounts for primary meter service as defined
in the General Service Large or the General Service Time of Use rate schedules; and
WHEREAS, the City Council finds that this ordinance is in the best interests of
the citizens of the City of Denton; NOW THEREFORE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. That the recitations contained in the above and foregoing paragraphs of
this ord'mance are incorporated herewith and are true and correct.
SECTION 2. That the Industrial Development Rider which is attached to Ordinance No.
2004-386 for electric service, and as provided for in Chapter 26 of the Code of Ordinances, is
hereby amended and replaced by the Industrial Development Rider (Schedule IDR) which is
attached hereto and incorporated herewith by reference, so as to properly reflect the three (3)
qualifications which the City Council now requ'nces of a ratepayer in order to obtain the IDR rate.
SECTION 3. That all ordinances or parts of ordinances in force when the provisions of
this ordinance became effective which are inconsistent, or in conflict with the terms or
provisions contained in this ordinance are hereby repealed to the extent of any such conflict.
SECTION 4. That 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 rema'ming
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 5. That this ordinance shall become effective, charged, and applied to all
services occurring on and after the date hereof; and a copy of said fees and charges shall be
maintained on file in the office of the City Secretary.
PASSED AND APPROVED this the cffa~--dday of ~~.~ , 2005.
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
&\Our DoeumentsXOrdinances\05~2005 Electrie-lDR Amendment.doc
SCHEDULE IDR
INDUSTRIAL DEVELOPMENTRIDER
(Effective 02/22/05)
PURPOSE
The purpose of this rider is to facilitate local economic growth and expand the ad valorem tax base
of the City of Denton.
AVAILABILITY
This rider is available to the Customers who:
(1) Receive service t~om Rate Schedules GSL or TGS; and
(2) Pay City of Denton ad valorem tax; and
(3)
Receive no discounts other than those specifically defined in the GSL or TGS rate
schedules.
APPLICATION
This rider is available to electric service supplied at any one location. It is for finn electric service
applicable to new and existing Customers as described below, over a five (5) year period. This rider
is available to the following classes of Customers:
(1)
New customers whose electric service represents demand not previously served by
the City at any location in the City's service area in the last twelve (12) months,
where such metered demand will be in excess of 225 KVA or 200 KW, as estimated
and mutually agreed upon by the Director of Electric Utilities and the customer.
(2)
Existing customers served under Rate Schedules GSL or TGS who increase their
prior existing metered demand by 225 KVA or 200 KW. This increase shall be
verified by sub-metering (at the Customers expense) the additional load. If sub-
metering is not possible, at the discretion of the Director of Electric Utilities, the
increase may be verified by comparing a three-month rolling average of the new
level of demand to the prior demand averaged for corresponding months. During
periods in which this verification method cannot be applied, the Director of Electric
Utilities and the Customer may develop a mutually agreed-upon formula to estimate
the base and additional demand levels.
NET MONTHLY RATE
The Customer shall be charged under the appropriate applicable rate schedules with the exception
that the monthly billing demand (for GSL) or system demand and on-peak demand (for TGS) will
be adjusted in accordance with the following table:
Time Period
Reduction to Billing Demand
First Year 50%
Second Year 40%
Third Year 30%
Fourth Year 20%
Fifth Year 10%
CONTRACT PERIOD
The term of the contract will be for five (5) years.
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