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HomeMy WebLinkAboutItem 24 - TXU Electric Tariff RevisionsIrFM # C:' ? (� MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROGER NELSON, CITY MANAGER' " MEETING DATE: FEBRUARY 15, 2000 SUBJECT: TXU ELECTRIC TARIFF REVISIONS RECOMMENDATION: City Council approval of the resolution to suspend the effective date of the proposed tariff revision that TXU Electric filed with the Public Utility Commission. FUNDING SOURCE: The resolution does not have a financial impact. BACKGROUND: The Steering Committee of Cities Served by TXU Electric was formed to address issues related to the electric and gas utilities. Given the fact that electric deregulation legislation was passed in the last session and that the PUC is currently working on the implementation of that legislation, there is a great deal of ambiguity associated with the impact of these revisions. TXU has filed the proposed tariff revisions in preparation of the opening of competition for electric service. Essentially, TXU proposes the elimination of and/or restrictions to specific classes of service. (See Attached Summary) The Steering Committee Cities are supporting the suspension of rates on the proposed tariff revisions in order to allow time for a thorough study of the impact to the customers. After a study is completed, the Staff will meet with the Utilities Committee to outline options and, subsequently, forward a recommendation to the City Council related to this process. The effective date of the proposed changes would be suspended for a ninety - day (90) period from March 1 s'to May 30th 2000. Staff and the City Attorney recommend approval of the resolution. February 8, 2000 (9:49AM) TXU Electric Tariff Filing January 25, 2000 In anticipation of retail competition in the electric market in Texas as a result of the passage of the 1999 electric industry restructuring law. TXU has filled a change in tariffs with the Public Utility Commission of Texas (PUC) and each original -jurisdiction municipality we serve. This filing is being made to facilitate the move to retail competition in Texas. TXU is attempting to be proactive in our efforts to crepare for the start of competition. There are four types of changes proposec, I , 1 Close certain retail tariffs to ne'N customers for services deemed competitive energy services which we cannot provide after September 1, 2000 Close and/or modify optional retail tariffs with contract provisions that extend beyond the January 1, 2002 date of full competition Or that are no longer necessary 3) Modify retail tariffs to limit contract term for basic rates to December 31, 2001, and 4) Delete retail tariffs that are no longer being utilized Competitive energy services are customer energy service business activities which are capable of being provided on a competitive basis in the retail rnarket. Examples include: energy efficiency services. energy audits, and guard lights. The electric industry restructuring passed by the Texas Legislature in 1999 requires that on or before September 1, 2000, an electric utility shall separate its regulated utility activities from its customer energy services T�e PUC initiated an industry rulemaking to identify those competitive energy services. As a result, TXU Electric has identified its competitive energy services and filed a plan with the PUC on January 10, 2000 to describe hove we will accomplish this separation. These changes will not impact pact anyone's rates. Rates were frozen effe.-Ilive September 1, 10-99 in accordance with the eie.­,ric industri restructuring law Additionally, the changes proposed in this tariff filing are designec to address new customers or, these rates and do not directly impact pact current customers receiving service under these rates. However, the issue of how to handle existing retail contracts that extend beyond Janua,-y, 1, 2002 is currently being discussed by the PUC. TXU Electric plans to take proactive measures to handle these contracts through negotiations. Our plan is to review each existing retail contract and renegotiate the terms with each customer to either 1) limit the contract term to December 31, 2001, 2) allow for contract termination by mutual agreement, or 3) allow both the customer and TXU Electric to terminate the contract with 30 days written notice, effective any time after December 31. 2001. 108 Z0 d az7_i TXU Electric Summary of Tariff Revisions Close Rate/Rider to new customers March 1, 2000 • ED - Economic Development Service • ET - Environmental Technology Service • GC - General Service Competitive Pricing • GC1 - General Service • I - Interruptible Service • OL - Outdoor Lighting Close Rate to new customers January 1, 2001 • RLU - Residential Low Use Service • RTU - Residential Time -of -Use Service • RTU1 - Residential Time -of -Use Service • RTU1-M - Residential Time -of -Use Service Municipality Close Rate to new customers January 1, 2001 & Limit contract term to December 31, 2001 • GTUC - General Service Time -of -Use Voluntary Curtailment • GTUC-M - General Service Time -of -Use Voluntary Curtailment Municipality Delete Tariff • RTP - Real Time Pricing • RTP -I - Real Time Pricing - Interruptible • RTP -1-1 - Real Time Pricing - Instantaneous Interruptible Limit contract term to December 31, 2001 • ES - Enterprise Zone • GP - General Service Primary • GS - General Service Secondary • GTU - General Service Time -of -Use GTU-M - General Service Time -of -Use Municipality • HV - High Voltage Service • LPP - Non -Firm Energy Purchases from Qualifying Facilities • R - Residential Service • S - Standby Service • SL - Street Lighting Service SPP - Small Power Production T - Temporary Service 4 01/25/00 r RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS SUSPENDING THE EFFECTIVE DATE OF TXU ELECTRIC'S PROPOSED TARIFF REVISION TO PERMIT THE STEERING COMMITTEE OF CITIES SERVED BY TXU ELECTRIC TIME TO STUDY AND MAKE RECOMMENDATIONS REGARDING THE PROPOSED CHANGES, AND PROVIDING AN EFFECTIVE DATE WHEREAS, on or about January 25, 2000 TXU filed with the City of Grapevine its request to close, modify or delete certain retail tariffs effective March 1, 2000; and WHEREAS, it is reasonable for the City of Grapevine to cooperate with other cities in a review of TXU Electric's application and to allow sufficient time for the Steering Committee of Cities served by TXU Electric to make recommendations on how to address the Company's filing; and WHEREAS, PURA §36.108(a)(1) grants local regulatory authorities the right to suspend the effective date of proposed rate changes for up to 90 days. THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That the effective date of the tariff changes submitted by TXU Electric on or about January 25, 2000 is suspended until May 30, 2000 to permit adequate time to review the proposed changes. Section 2. That a copy of this suspension resolution be sent to the local representative of TXU Electric. Section 3. That this resolution shall become effective from and after the date of its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this 15th day of February, 2000. L1,199CM9 APPROVED AS TO FORM: RES. NO.