HomeMy WebLinkAboutItem 01 - TXU Gas and Electric Settlement AgreementITEM # - -
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY
COUNCIL
FROM: ROGER NELSON, CITY MANAGER,
MEETING DATE: DECEMBER 3, 2002
SUBJECT: TXU GAS & ELECTRIC SETTLEMENT AGREEMENT
RECOMMENDATION:
Staff recommends the City Council approve the resolution authorizing the City
Manager to accept the terms of the TXU settlement resulting from the City of
Denton litigation, and approve the two ordinances amending the existing
franchise agreements for the provision of electric and gas service in Grapevine.
FUNDING SOURCE:
The City will receive a settlement check for $135,659.95 for the recovery of gas
and electric franchise fees.
BACKGROUND:
TXU Electric Company and TXU Gas Company have recently offered to settle
outstanding claims concerning the calculation and amount of franchise fees paid.
Several cities, led by the City of Denton, conducted a review of past franchises and
determined discrepancies between what was paid and what was owed under the
terms of the electric and gas franchises. The City of Grapevine did not participate in
that litigation. However, since the City of Grapevine had entered into a 'favored
nations' agreement with the company, it has been offered the same settlement
terms. The information is summarized and presented according to electric and gas
respectively.
Terms of Electric Settlement:
❑ Cash Payment of $55,212.02
❑ Company will absorb cost of payment and will not initially pass on the costs to
Customers.*
❑ City will amend the existing franchise agreement to add the Discretionary
Charges to the base.
❑ City waives the right to audit franchise fees.
(Already limited by deregulation rules—cities not allowed to audit prior to
Sept. 1999 and can only review for a two-year period.)
❑ Company will file a tariff with the Public Utility Commission on the
Discretionary Charges in order to assess franchise fees on those services.
❑ Electric franchise fee collections will increase as a result of the broader base.
*The statute associated with deregulation of the electric market in Texas created
new formula for the calculation of franchise fees, which is based on the KWH
consumed in a community.
Terms of Gas Settlement:
• Cash Payment of $80,447.93
• Waive right to audit franchise fees prior to Dec. 31, 2001
• 10 Revenue Categories – Apply 4%
Residential (existing)
Residential Governmental
Commercial (existing)
Commercial Governmental
Industrial (existing)
Industrial Governmental
Transportation
3rd Party value of Gas
Service Charges
Contributions in Aid of
Construction
(*DFW Airport accounts subject to 2% charge per Municipal Airports Act.)
• A surcharge will be applied to customers' bills for up to 36 months to recover
the payment.
• The City will collect an estimated $7,500-$10,000 in additional revenue as a
result of the broader base. The estimate is conservative and is based on
projections from revenues the company collected in the new categories in
2000.
• Impact on Customers
➢ Average Residential Bill (6mcf) – Estimated at $.12-.15 p/month
➢ Average Commercial Bill (30 mcf)—Estimated at $.53 -.55
p/month
It should be noted that customers in Grapevine recently incurred a surcharge as
a result of an under collection of franchise fees. Through the review of this case,
Staff found that TXU had not remitted franchise fees in accordance with 4% of
gross receipts requirement in our current ordinance.
In October, the City of Grapevine accepted a payment of $573,098 for that under
collection in fees. An audit of the collection history found that $217,734.49 of the
payment owed had not been collected from the customers. That amount will be
collected via a surcharge as the company is permitted through state law:
■ Impact on Residential: $.40 to .46 p/month
■ Impact on Commercial: $2.09 p/month
■ Surcharge applied for up to 36 months.
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Because of the payment due to the City and the settlement payment offered
through the Denton litigation, the total cumulative impact on the customer for the
surcharges is reflected below:
• Residential, $.52 to $.60 p/month;
■ Commercial, $2.62 to $2.65 p/month
The resolution attached provides the City Manager the authority to enter into the
agreement with TXU. Additionally, the two ordinances will amend the existing
franchise agreements with TXU Electric and TXU Gas (Oncor) respectively.
The Utilities Committee and the City Attorney have reviewed the facts related to
the settlement and recommend acceptance of the terms as presented. Staff
also recommends approval.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, AUTHORIZING THE EXECUTION
OF A COMPROMISE, SETTLEMENT AND RELEASE
AGREEMENT WITH TXU ELECTRIC COMPANY N/K/A
TXU US HOLDINGS COMPANY AND TXU GAS COMPANY
RELATIVE TO ELECTRIC AND GAS FRANCHISE FEE
CLAIMS AND PROVIDING AN EFFECTIVE DATE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE,
TEXAS:
Section 1. That the City Manager or his designee is hereby authorized to
execute a Compromise, Settlement and Release Agreement with TXU Electric
Company n/k/a TXU US Holdings Company and TXU Gas Company relative to the
settlement of electric and gas franchise fee claims.
Section 2. That a substantial copy of the agreement is attached hereto as
Exhibit "A" and incorporated herein for all intents and purposes.
Section 3. That this resolution shall become effective immediately from and
after its passage and approval by the City Council.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 3rd day of December, 2002.
ATTEST:
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EXHIr.IT.L TO
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Page
COMPROMISE, SETTLEMENT AND RELEASE AGREEMENT
This Compromise, Settlement, and Release Agreement (the "Agreement") is made and
entered into as of the date set forth below by and between the City of Grapevine (the "City") and
TXU Electric Company n/k/a TXU US Holdings Company ("TXU Electric") and TXU Gas
Company ("TXU Gas"):
WHEREAS, thirty seven cities filed a suit in the 134' Judicial District Court of Dallas
County, Texas, in Cause No. 00-9383, styled City of Denton, Texas et al. vs. TXU Electric Company,
et al. (the "Litigation") which included claims arising out of the electric and gas franchise ordinances
similar in some respects to the franchise ordinances entered into by and between the City and
TXU Electric and TXU Gas and, specifically, the Litigation involved a dispute with regard to the
calculation and amount of franchise fees paid by TXU Electric and TXU Gas;
WHEREAS, the Litigation was resolved by agreement and TXU Electric and TXU Gas have
agreed to offer the City the same benefits offered to the Plaintiffs in the Litigation and the City has
agreed to accept the offer by TXU Electric and TXU Gas and to release any claims related to the
payment of franchise fees prior to and through December 31, 2001 ;
NOW, THEREFORE, in order to fully and finally resolve all disputes and claims arising
out of the calculation and payment of franchise fees to the City by TXU Electric and TXU Gas prior
to and through December 31, 2001, for the mutual promises and covenants set forth in this
Agreement, the adequacy and sufficiency of which consideration is acknowledged the City and
TXU Electric and TXU Gas agree as follows:
1. AMENDMENTS TO THE ELECTRIC FRANCHISE ORDINANCE
As the result of electric industry restructuring, the electric franchise formerly held by
TXU Electric has been assigned to Oncor Electric Delivery Company ("Oncor"), accordingly,
COMPROMISE SETTLEMENT AND RELEASE AGREEMENT - Page I
�effective January 1, 2002, the City agrees to enter into and TXU Electric agrees to cause Oncor to
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accept an amendment to the current electric franchise ordinance substantially in the form of the
amendment attached as Exhibit A which amendment shall, at the election of the City, provide that
the Discretionary Services Charges identified in Section 6.1.2 of the Tariff for Retail Delivery
attached as Exhibit A-1 applicable to Oncor which are directly paid by the customer and which are
those charges identified as items DD1 through and inclusive of DD24 in said tariff, shall be subject
to an additional franchise fee based on 4% of such charges which additional franchise fee shall be
paid to the City pursuant to the terms of the amendment attached as Exhibit A. The City
acknowledges that Oncor may file with the Texas Public Utility Commission and/or the City a tariff
amendment in compliance with the terms of this agreement, which will provide that Oncor shall have
the right to collect from the customer the franchise fee on such Discretionary Service Charges such
that the customer shall bear 100% of the franchise fee on such Discretionary Service Charges. The
City acknowledges that Oncor is an intended third -party beneficiary of this agreement and agrees
to cooperate with Oncor in order for Oncor to pass through to customers the entire franchise fee on
such Discretionary Service Charges by taking the following actions: (i) to the extent the City acts
as regulatory authority, by adopting and approving that portion of any tariff in compliance with the
terms of this Agreement which provides for 100% recovery of such franchise fees; (ii) in the event
the City intervenes in any regulatory proceeding before a federal or state agency in which the
recovery of the franchise fees on such Discretionary Service Charges is an issue, the City will take
an affirmative position supporting the 100% recovery of such franchise fees by Oncor and; (iii) in
the event of an appeal of any such regulatory proceeding in which the City has intervened, the City
will take an affirmative position in any such appeals in support of the 100% recovery of such
franchise fees by Oncor. The City further agrees not to take any action to prevent the recovery of
COMPROMISE. SETTLEMENT AND RELEASE AGREEMENT - Nee 2
the franchise fees on such Discretionary Service Charges by Oncor and to take other action which
may be reasonably requested by Oncor to provide for the 100% recovery of such franchise fees by
Oncor.
2. AMENDMENTS TO THE GAS FRANCHISE ORDINANCE
Effective January 1, 2002, the City agrees to enact and TXU Gas agrees to accept an
amendment to the current gas franchise ordinance substantially in the form of the amendment
attached as Exhibit B to provide that, at the election of the City, the franchise fee will increase to a
maximum of 4.00% of the applicable franchise fee payment base and, at the election of the City, the
franchise fee payment base shall be amended to include miscellaneous fees, contributions in aid of
construction, bad debt expense, transportation revenues and third -party gas sales and gross receipts
fees as well as a favored nations clause with respect to franchise fee payments and franchise fee
calculations, substantially in the form of the provisions in Exhibit B. The City acknowledges that
TXU Gas has the right to recover from its ratepayers such additional franchise fee payments to the
City and the City agrees to cooperate with TXU Gas in order for TXU Gas to pass through to its
ratepayers the entire franchise fee payment, as amended, by taking the following actions: (i) as
regulatory authority, by adopting and approving the ordinance, rates or tariff which provide for
100% recovery of such franchise fees as part of TXU Gas' rates; (ii) in the event the City intervenes
in any regulatory proceeding before a federal or state agency in which the recovery of TXU Gas'
franchise fees is an issue, the City will take an affirmative position supporting 100% recovery of
such franchise fees by TXU Gas and; (iii) in the event of an appeal of any such regulatory
proceeding in which a City has intervened, the City will take an affirmative position in any such
appeals in support of the 100% recovery of such franchise fees by TXU Gas. The City further agrees
COMPROMISE SETTLEMENT AND RELEASE AGREEMENT - Page.3
not to take any action to prevent the recovery of such franchise fees by TXU Gas and to take other
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action which may be reasonably requested by TXU Gas to provide for the 100% recovery of such
franchise fees from TXU Gas' ratepayers.
3. PAYMENTS TO THE CITY
Upon execution and delivery of a fully executed and notarized original of this Agreement:
A. TXU Gas agrees to pay to the City the sum of $80,447.93. The City acknowledges
that TXU Gas has the right to and shall recover this amount from its ratepayers
pursuant to the tax adjustment clause applicable to TXU Gas, by applying a
surcharge to the monthly bills rendered to its ratepayers, provided that the recovery
of such surcharge shall be limited as follows: (1) the surcharge shall be amortized
over a period not less than three years, and (2) the accrual balance will not be subject
to interest. TXU Gas agrees that the franchise fee paid to the City and recovered
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from ratepayers under this Agreement will not include any amounts collected in the
past from ratepayers.
B. TXU Electric agrees to pay, or cause Oncor to pay the City, the sum of $55,212.02.
4. RELEASE OF TXU ELECTRIC, TXU GAS AND THEIR AFFILIATES BY THE
CITY
Except for claims arising out of a breach of this Agreement, the City of Grapevine, on behalf
of itself and its successors and assigns and any and all persons, entities or municipalities claiming
by, through or under them, hereby RELEASES, DISCHARGES AND ACQUITS, forever and for
all purposes, TXU Electric Company (now known as TXU US Holdings Company), its successor
Oncor Electric Delivery Company, TXU Gas Company, including its division TXU Gas
Distribution, TXU Corp. and each of their respective agents, employees, officers, directors,
COMPROMISE. SETTLEMENT AND RELEASE AGREEMENT - Page 4
shareholders, partners, insurers, attorneys, legal representatives, successors and assigns as well as
their affiliated corporations, including TXU Business Services Company and TXU Energy Company
LLC and its subsidiaries, from and against any and all liability which they now have, have had or
may have, and all past, present and future actions, causes of action, claims, demands, damages, costs,
expenses, compensation, losses and attorneys' fees of any kind or nature whatsoever, or however
described, whether known or unknown, fixed or contingent, in law or in equity, whether asserted or
unasserted, whether in tort or contract, whether now existing or accruing in the future arising out of
or related to the payment, calculation or rendition of franchise fees to the City on or before
December 31, 2001 and all claims which could be asserted against TXU Electric and/or TXU Gas
in litigation in any way related to the payment, calculation or rendition of franchise fees by
TXU Electric and/or TXU Gas on or before December 31, 2001. This release is intended to only
release claims related to the payment, calculation or rendition of franchise fees by TXU Electric and
TXU Gas on or before December 31, 2001 and is not intended to release any other claim or cause
of action that any party to this Agreement has, known or unknown, or which accrues in the future.
5. WARRANTY AS TO OWNERSHIP OF CLAIMS AND AUTHORITY
A. The City warrants and represents that it is the owner of the claims being
compromised, settled, discharged and released pursuant to this Agreement and each
further warrants and represents that it has not previously assigned all or any part of
such claims to another entity or person. The City warrants and represents that there
are no liens of any nature, assignments or subrogation interests in or to the money
paid to the City under the terms of this Agreement. The City warrants that it will take
all action necessary to properly execute and deliver this agreement.
COMPROMISE SETTLEMENT AND RELEASE AGREEMENT - Page 5
B. TXU Electric and TXU Gas warrant that the person(s) executing this Agreement on
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their behalf has authority to bind the entity for whom such person signs this
Agreement.
6. NO ADMISSION OF LIABILITY
This Agreement is made to compromise, terminate and to constitute an accord and
satisfaction of all of the claims released by this Agreement and TXU Electric and TXU Gas admit
no liability, fault or wrongdoing of any nature or kind whatsoever and expressly deny and disclaim
any liability, fault or wrongdoing alleged or which could have been alleged with regard to the claims
asserted in the Litigation if the City had become a party to the Litigation or any similar claims which
might be asserted by the City against TXU Electric and/or TXU Gas.
7. RECOVERY OF DAMAGES DUE TO BREACH
In the event of breach by any party of the terms and conditions of this Agreement, a non -
breaching parry shall be entitled to recover all expenses as a result of such breach, including, but not
limited to, reasonable attorneys' fees and costs.
MISCELLANEOUS PROVISIONS
8. It is understood and agreed that all agreements and understandings by and between the parties
to this Agreement with respect to the payment of franchise fees and the settlement of any claims
related to the payment of franchise fees are expressly embodied in this Agreement and that this
Agreement supersedes any and all prior agreements, arrangements or understandings between the
parties relating to the claims released pursuant to this Agreement or any matters related thereto
executed by the parties.
9. The parties acknowledge and agree that the terms of this Agreement are all contractual and
not mere recitals.
COMPROMISE. SETTLEMENT AND RELEASE AGREEMENT - Page 6
14. The parties acknowledge that they have read this Agreement, understand its terms, and that
this Agreement is entered into voluntarily, without duress, and with full knowledge of its legal
significance.
11. This Agreement may not be modified in any manner, nor may any rights provided for herein
be waived, except by an instrument in writing signed by each party.
12. This Agreement shall be binding upon and shall inure to the benefit of the parties and their
respective successors and assigns.
13. Should any term or any provision of this Agreement be declared invalid by a court of
competent jurisdiction, the parties agree that all other terms of this Agreement are binding and have
full force and effect as if the invalid portion had not been included.
14. The parties represent and warrant that no party has been induced to enter this Agreement by
a statement, action or representation of any kind or character made by the persons or entities released
under this Agreement or any person or persons representing them, other than those expressly made
in this Agreement.
15. It is understood and agreed that this Agreement may be executed in a number of identical
counterparts, each of which shall be deemed an original for all purposes.
16. The headings contained herein are for convenience and reference only and are agreed, in no
way, to define, describe, extend or limit the scope or intent of this Agreement or its provisions.
17. This Agreement shall be construed in accordance with the laws of the State of Texas.
IN WITNESS WHEREOF, this Agreement has been executed by the parties as of the date
set forth.
THE CITY OF GRAPEVINE, TEXAS
COMPROMISE SETTLEMENT AND RELEASE AGREEMENT - Page 7
By:
Its:
Date:
TXU ELECTRIC COMPANY n/k/a TXU
US HOLDINGS COMPANY
By:
Its:
Date:
TXU GAS COMPANY
By:
Its:
Date:
STATE OF TEXAS 3
COUNTY OF
This instrument was acknowledged before me on the day of 2002,
by-, as on behalf of the City of _
Notary Public, State of Texas
COMPROMISE, SETTLEMENT AND RELEASE.AGREEMENT - Page 8
STATE OF TEXAS
COUNTY OF
This instrument was acknowledged before me on the day of 2002,
by , of TXU Electric Company n/k/a TXU US Holdings Company, on behalf
of said corporation.
Notary Public, State of Texas
STATE OF TEXAS
3
COUNTY OF DALLAS 3
This instrument was acknowledged before me on the day of 2002,
by , of TXU Gas Company, on behalf of said corporation.
Notary Public, State of Texas
COMPROMISE SETTLEMENT AND RELEASE AGREEMENT - Pau 9
EXHIBIT„ TOLE.0
Page - of
EXHIBIT A
AMENDMENT 2002:
(Included in Ordinance amending franchise with TXU Electric)
A. Effective January 1, 2002, the franchise fee due from Oncor
shall be a sum comprised of the following:
(1) a charge, as authorized by Section 33.008(b) of
PURA, based on each kilowatt hour of electricity
delivered by Oncor to each retail customer whose
consuming facility's point of delivery is located within
the City's municipal boundaries and as specified by
Oncor to the City by letter dated January 21, 2002.
(a) The franchise fee due pursuant to Section
33.008(b) of PURA shall be payable in
accordance with the existing electric franchise
Ordinance No. 60-12 and Ordinance No. 93-
33; and
(2) a sum equal to four percent (4%) of gross revenues
received by Oncor from services identified in its "Tariff
for Retail Delivery Service", Section 6.1.2,
Discretionary Service Charges," items DD1 through
DD24, that are for the account or benefit of an end-
use retail electric consumer.
(a) The franchise fee amounts based on
"Discretionary Service Charges" shall be
calculated on an annual calendar year basis,
i.e., from January 1 through December 31 of
each calendar year.
(b) The franchise fee amounts that are due based
on "Discretionary Service Charges" shall be
paid at least once annually on or before April
30 each year based on the total "Discretionary
Service Charges" received during the
preceding calendar year.
(c) Oncor shall pay franchise payments to the City
based on the "Discretionary Service Charges"
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as set forth herein beginning January 1, 2003.
B. Oncor Franchise Fee Recovery Tariff
(1) Oncor may file a tariff amendment(s) to provide for
the recovery of the franchise fee on Discretionary
Service Charges.
(2) City agrees (i) to the extent the City acts as regulatory
authority, to adopt and approve that portion of any
tariff which provides for 100% recovery of the
franchise fee on Discretionary Service Charges; (ii) in
the event the City intervenes in any regulatory
proceeding before a federal or state agency in which
the recovery of the franchise fees on such
Discretionary Service Charges is an issue, the City
will take an affirmative position supporting the 100%
recovery of such franchise fees by Oncor and; (iii) in
the event of an appeal of any such regulatory
proceeding in which the City has intervened, the City
will take an affirmative position in any such appeals in
support of the 100% recovery of such franchise fees
by Oncor.
(3) City agrees that it will take no action, nor cause any
other person or entity to take any action, to prohibit
the recovery of such franchise fees by Oncor.
EXHIBIT TO � na,,�...
Tariff for Retail Delivery Service
Oncor Electric Delivery Company
6.1.2 Discretionary Service Charges Sheet: 1
Applicable: Entire Certified Service Area
Page 1 of 5
Effective Date: January 1, 2002 Revision: Original
6.1.2 - Discretionary Service Charges
AVAILABILITY
Applicable to all Competitive Retailers and Retail Customers served by the Company.
The service charges listed below are in addition to any other charges made under Company's Tariff for Retail Delivery Service, and will
be applied for the appropriate condition described. Other services not covered by these standard conditions will be charged on the basis
of an estimate for the job or the Company's cost plus appropriate adders and will be provided in accordance with Commission
Substantive Rules,
Charge
No.
Name and Description
Amount
DD1
Account Initiation Charge is made for processing a request for distribution service initiation.
$ 7.00
DD2
Out -of -Cycle Meter Reading Charge is made each time Competitive Retailer requests, and
Company makes, a manual out -of -cycle meter reading.
A. During Regular Hours
$ 7.25
B. Outside Regular Hours - Non -Holiday
$ 78.00
C. Outside Regular Hours - Holiday
$ 100.00
DD3
Connection Charge is made for new service connections made outside regular working hours.
A. Self Contained Meter
$ 89.00
B. Other Connections
As Calculated
DD4
Retail Customer Requested Clearance Charge is made for activities and expenses involved
As Calculated
in de-energizing/re-energizing Company facilities to allow Retail Customer or Retail Customer's
contractor to work near Company electrical facilities or on the Retail Customer's facilities.
DD5
Disconnect/Reconnect Charge is made for disconnection or reconnection of Retail
Customer's distribution service.
Disconnect at Meter
A. During Regular Hours
$ 8.00
Reconnect at Meter
B. During Regular Hours - Regular Route
$ 10.00
C. During Regular Hours - Special Route
$ 28.00
D. Outside Regular Hours - Non Holiday
$ 89.00
E. Outside Regular Hours - Holiday
$ 115.00
Disconnect at Pole, Weatherhead or Secondary Box
F. During Regular Hours
$ 44.00
Reconnect at Pole Weatherhead or Secondary Box
G. During Regular Hours
S 54.00
H. Outside Regular Hours - Non Holiday
S 155.00
I. Outside Regular Hours - Holiday
$ 196.00
DD6
Delivery System Facilities Installation Charge is made pursuant to Section 6.1.2.2 of this
As Calculated
Tariff for Retail Delivery Service requests involving the installation, construction, or extension of
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distribution facilities.
DD7 j Additional Service Design Charge is made for preparing iterative designs to provide service As Calculated
to a specific location where such iterations are at the request of the Retail Customer for the
Retail Customer's sole benefit. The initial two designs on a project will be included in the
system charges, any additional designs will be done at Retail Customer's expense pursuant to
j th:s charge.
76
Tariff for Retail Delivery Service
Oncor Electric Delivery Company
6.1.2 Discretionary Service Charges
Applicable: Entire Certified Service Area
Effective Date: January 1, 2002
Sheet: 1
Page 2 of 5
Revision: Original
DD8
Temporary Facilities Charge is made in conjunction with short-term construction projects.
A. Connect and disconnect service and read a meter already installed, including an Account
$ 49.00
Initiation Charge.
B. Install and remove single phase service wires and a meter (demand or non -demand) and
$ 161.00
read a meter, including an Account Initiation Charge.
C. Install and remove single phase service wires, meter and transformer (up to 50 kVA) on
$ 653.00
existing pole and read a meter, including an Account Initiation Charge.
D. All other temporary facilities installation and removal.
As Calculated
DD9
Facilities Relocation/Removal Charge is made for relocation or removal of Company
As Calculated
facilities at the request of and for the benefit of the requestor pursuant to Section 6.1.2.2 of this
Tariff for Retail Delivery Service.
DD10
Meter Test Charge is made when a Competitive Retailer requests, and Company performs, a
meter test and the meter is found to be within the accuracy standards established by the
applicable legal authority.
$ 23.00
A. Single Phase Self Contained
$ 44.00
$ 71.00
B. Three Phase Self Contained
$ 94.00
C. Single Phase Instrument Rated
D. Three Phase Instrument Rated
DD11
PCB Inquiry and Testing Charge is made for activities and expenses involved in the research
$ 125.00
required to respond to PCB inquiries regarding Company-owned, mineral oil -filled electrical
equipment, plus a lab testing charge if required. Initial charge covers up to four transformers at
a specific location. For each additional transformer at the same location, add $20.
A. Lab Testing Charge (if required)
As Calculated
DD12
Service Call Charge is made for responding to a service call that is determined to be a Retail
$ 50.00
Customer problem rather than a Company problem.
DD13
Tampering Charge is made for unauthorized reconnection or other tampering with Company
$ 147.00
metering facilities or any theft of electric service by any person on the Retail Customer's
premises or evidence by whomsoever done at Retail Customer's premises. An additional
charge for the cost of repairs and/or replacement of damaged facilities and the installation of
protective facilities or relocation of meter is made at cost plus appropriate adders.
DD14
Off -Site Meter Reading (OMR) Equipment Installation Charge is made for installation of
Company's "Standard Advanced Metering Equipment" designed to transmit information via
radio to a hand held meter reading device carried by the meter reader. This allows for the
provision of a meter reading without visual contact with the meter. The Company maintains
ownership of this equipment.
A. During Regular Hours
$ 86.00
$ 152.00
B. Outside Regular Hours - Non -Holiday
$ 178.00
C. Outside Regular Hours - Holiday
DD15 Automated Meter Reading (AMR) Equipment Installation Charge is made for the
installation of Company's "Standard Advanced Metering Equipment" designed to transmit
information via telephone to a central location. This allows for the provision of meter reading
information on cycle or special reading date at the request of a Competitive Retailer. The
Competitive Retailer must secure Retail Customer commitment to maintain a working
telephone circuit and Retail Customer's permission to connect Retail Customer's telephone
circuit to the meter. The Company maintains ownership of this equipment.
j A. Single Phase Self Contained $ 202.00
S 359.00
B. Three Phase Self Contained
S 259.00
C. Single Phase Instrument Rated
S 420.Q0
D. Three Phase Instrument Rated
77
Tariff for Retail Delivery Service
Oncor Electric Delivery Company
6.1.2 Discretionary Service Charges
Applicable: Entire Certified Service Area
Effective Date: January 1, 2001
Sheet: 1
Page 3 of 5
Revision: Original
DD16
Automated Meter Reading (AMR) Charge is made for monthly automated meter reading
(AMR).
A. AMR - Cycle Meter Read
$ 1.50
B. AMR - Specific Date Meter Read
$ 6.10
DD17
Advanced Metering Interval Load Data Equipment Installation Charge is made for specific
As Calculated
requests by Competitive Retailer for installation of Company's "Standard Advanced Metering
Equipment" designed to access interval load data via telephone. The Competitive Retailer
must secure Retail Customer commitment to maintain a working telephone circuit and Retail
Customer's permission to connect Retail Customer's telephone circuit to the meter. The
Company maintains ownership of this equipment.
DD18
Advanced Metering Interval Load Data Equipment Maintenance Charge is for monthly
$ 7.00
maintenance and telephone support for "Standard Advanced Metering Equipment."
DD19
Electrical Pulse Equipment Installation/Replacement Charge is for the
installation/replacement of electrical pulse device equipment.
A. Installation Charge
$ 330.00
B. Replacement Charges
1. Isolation [elay
$ 212.00
2. Pulse initiator
$ 125.00
3. Isolation relay & pulse initiator
$ 272.00
4. Enclosure box
$ 119.00
DD20
Electrical Pulse Equipment Maintenance Charge is made for the maintenance of electrical
$ 10.00
pulse devices. This is an optional service that covers repair/replacement of electric pulse
equipment. If Retail Customer does not choose this service, Retail Customer is responsible for
replacement charges according to discretionary service charge DD19.
DD21
Dual Socket Meter Adapter Installation Charge is made for installation of a dual socket
$ 566.00
meter adapter on instrument rated metering facilities to accommodate the Retail Customer's
meter. Company maintains ownership of this equipment. Measurements taken from
Company's meter will be used to bill Competitive Retailer for non -bypassable charges and for
settlement purposes.
DD22
Power Factor Correction Equipment Installation Charge is made for the cost of and
As Calculated
installation of the equipment on Company's Delivery System necessary to correct the Retail
Customer's power factor to the level contained in the Company's Tariff for Delivery Service.
The Retail Customer will be given the opportunity to correct problem on Retail Customer's
premises prior to Company taking this action.
DD23
Non -Standard Service Equipment Inspection/Testing Charge is made for the periodic
$ 58.00
inspection,'testing of electric distribution facilities installed at the request of Retail Customer to
enhance service reliability.
W
Tariff for Retail Delivery Service
Oncor Electric Delivery Company
6.1.2 Discretionary Service Charges
Applicable: Entire Certified Service Area
Effective Date: January 1, 2002
DD24 ` Distributed Generation Pre -interconnection Study Fee is made for studies that may be
required and conducted by Company for the interconnection of distributed generation on the
Company's delivery system.
NON -EXPORTING
A. 0 to 10 kW
1. Pre -certified, not on network
2. Not pre -certified, not on network
3. Pre -certified, on network
4. Not pre -certified on network
B. 10+ to 500 kW
1. Pre -certified, not on network
2. Not pre -certified, not on network
3. Pre -certified, on network
4. Not pre -certified on network
C. 500+ to 2000 kW
1. Pre -certified, not on network
2. Not pre -certified, not on network
3. Pre -certified, on network
4. Not pre -certified on network
D. 2000+ kW
1. Pre -certified, not on network
2. Not pre -certified, not on network
3. Pre -certified, on network
4. Not pre -certified on network
EXPORTING
A. 0 to 10 kW
1. Pre -certified, not on network
2. Not pre -certified, not on network
3. Pre -certified, on network
4. Not pre -certified on network
B. 10+ to 500 kW
1. Pre -certified, not on network
2. Not pre -certified, not on network
3. Pre -certified, on network
4. Not pre -certified on network
C. 500+ to 2000 kW
1. Pre -certified, not on network
2. Not pre -certified, not on network
3. Pre -certified, on network
4. Not pre -certified on network
D. 2000+ kW
1. Pre -certified, not on network
2. Not pre -certified, not on network
3. Pre -certified, on network
4. Not pre -certified on network
No cost for inverter systems less than 20 kW.
No cost if generator supplies less than 15% of feeder load and less than 25% of feeder fault
current.
79
Sheet: 1
Page 4 of 5
Revision: Original
$ 0
$ 220
$ 200'
$ 330
$ 180"
$ 320
$ 960-
$ 1,725
$ 510
$ 650
$ 2,550
$ 2,550
$ 860
$ 1,000
$ 3,000
$ 3,653
$ 0
$ 220
$ 200-
$ 330
$ 180"
S 320
$ 1,290'
S 1,890
S 510
S 650
$ 3,300
$ 3,440
$ 860
$ 1,000
S 3,650
S 3,780
Tariff for Retail Delivery Service
Oncor Electric Delivery Company
6.1.2 Discretionary Service Charges Sheet: 1
Applicable: Entire Certified Service Area Page 5 of 5
Effective Date: January 1, 2002 Revision: Original
DD25
Retail Delivery Service Switchover Charge is made for a request to switch service to a
consuming facility to another utility that has the right to serve the facility and shall be handled
t
pursuant to Public Utility Commission of Texas Substantive Rule §25.27, a copy of which will be
provided upon request.
Self Contained
A. Base Charge
$ 250.00
B. Base Charge Adder
$ 115.00
Instrument Rated
C. Base Charge
$ 455.00
D. Base Charge Adder
$ 255.00
E. Facilities Recovery Charge
As Calculated
DD26
Miscellaneous Discretionary Service Charge is made for discretionary services not covered
As Calculated
by the standard conditions above and provided in accordance with Commission Substantive
Rules and are charged on the basis of an estimate for the job or the Company's cost plus
appropriate adders.
TD1(R)
Transmission Facilities Relocation Study Charge is made for a study performed by
As Calculated
Company at request of Retail Customer for the relocation of transmission or substation
facilities.
TD2(R)
Transmission Facilities Relocation Charge is made for the relocation of transmission
As Calculated
facilities at request of Retail Customer.
TD3(R)
Power Factor Correction Facilities Installation Charge is made for the installation of power
As Calculated
factor correcting facilities by Company due to failure of Retail Customer to maintain required
ower factor.
TD4(R)
Miscellaneous Transmission Discretionary Services Charge is made for additional
As Calculated
transmission related discretionary services as requested by Retail Customer in accordance with
Commission Substantive Rules and Company's Comm ission-a pp roved service regulations.
80
Tariff for Retail Delivery Service
Oncor Electric Delivery Company
6.1.2 Discretionary Service Charges Sheet: 1
Applicable: Entire Certified Service Area Page 1 of 1
Effective Date: January 1, 2002 Revision: Original
6.1.2.1 - Discretionary Charges - Other Than Construction
{ Service Charges
AVAILABILITY
Applicable to all Competitive Retailers and Retail Customers served by the Company.
The service charges listed below are in addition to any other charges made under Company's Tariff for Retail Delivery Service, and will
be applied for the appropriate condition described. Other services not covered by these standard conditions will be charged on the basis
of an estimate for the job or the Company's cost plus appropriate adders and will be provided in accordance with Commission
Substantive Rules.
Discretionary Charges - Other Than Construction Service Charges include:
DD1 Account Initiation Charge
DD2 Out -of -Cycle Meter Reading Charge
DD3 Connection Charge
DD4 Retail Customer Requested Clearance Charge
DD5 Disconnect/Reconnect Charge
DD10 Meter Test Charge
DD11 PCB Inquiry and Testing Charge
DD12 Service Call Charge
DD13 Tampering Charge
DD14 Off -Site Meter Reading (OMR) Equipment Installation Charge
DD15 Automated Meter Reading (AMR) Equipment Installation Charge
DD16 Automated Meter Reading (AMR) Charge
DD17 Advanced Metering Interval Load Data Equipment Installation Charge
DD18 Advanced Metering Interval Load Data Equipment Maintenance Charge
DD19 Electrical Pulse Equipment Installation/Replacement Charge
DD20 Electrical Pulse Equipment Maintenance Charge
DD21 Dual Socket Meter Adapter Installation Charge
DD22 Power Factor Correction Equipment Installation Charge
DD23 Non -Standard Service Equipment Inspection/7esting Charge
DD24 Distributed Generation Pre -Interconnection Study Fee
DD25 Retail Delivery Service Switchover Charge
DD26 Miscellaneous Discretionary Service Charge
TD3(R) Power Factor Correction Facilities Installation Charge
TD4(R) Miscellaneous Transmission Discretionary Services Charge
Tariff for Retail Delivery Service
Oncor Electric Delivery Company
6.1.2 Discretionary Service Charges Sheet: 2
Applicable: Entire Certified Service Area Page 1 of 5
`, ���Effective Date: January 1, 2002 Revision: Original
6.1.2.2 - Discretionary Charges - Construction Service
AVAILABILITY
Applicable to all Competitive Retailers and Retail Customers requesting construction services by the Company, in accordance with
Section 5.7 of this Tariff.
The service charges listed below are in addition to any other charges made under Company's Tariff for Retail Delivery Service, and will
be applied for the appropriate condition described. Other services not covered by these standard conditions will be charged on the basis
of an estimate for the job or the Company's cost plus appropriate adders and will be provided in accordance with Commission
Substantive Rules.
Discretionary Charges for Construction Service include:
DD6 Delivery System Facilities Installation Charge
DD7 Additional Service Design Charge
DD8 Temporary Facilities Charge
DD9 Facilities Relocation/Removal Charge
TD1(R) Transmission Facilities Relocation Study Charge
TD2(R) Transmission Facilities Relocation Charge
6.1.2.2.1 General: `Distribution Facilities
Company is responsible for the construction, extension, upgrade, or alteration of Delivery System facilities necessary to connect Retail
Customer's Point of Delivery to Company's Delivery System in conjunction with Section 5.7, FACILITIES EXTENSION POLICY and the
terms and conditions contained herein. Company makes extension of Delivery System facilities to Retail Customer's electrical
installation so as to minimize the cost of such extension. Extension is normally made at no cost to Retail Customer except in those
instances where the cost of the requested extension of Company's facilities is in excess of the standard allowances stated herein, or
where the installation of non-standard facilities is requested. In these instances, a contribution in aid of construction ("CIAC") is required
from Retail Customer for all extensions where the estimated cost of the extension is in excess of the standard allowances.
6.1.2.2.1.1 Standard Distribution Facilities
Company's standard distribution facilities consist of the Delivery System facilities necessary to transport Electric Power and Energy from
a single, single-phase or three-phase distribution source to Retail Customer at one Point of Delivery, with one standard Meter, at one of
Company's available standard voltages.
6.1.2.2.1.2 Non-standard Facilities
Non-standard facilities include but are not limited to a two-way feed, automatic and manual transfer switches, service through more than
one point of delivery, redundant facilities, facilities in excess of those normally required for service, or facilities necessary to provide
service at a non-standard voltage.
If Retail Customer desires Delivery Service utilizing non-standard facilities, as described above, and not covered elsewhere in these
Service Regulations, then Company may construct such facilities pursuant to Section 5.7.5, NON-STANDARD FACILITIES and Section
6.1.2.2.6, NON-STANDARD FACILITY EXTENSIONS.
6.1.2.2.1.3 Retail Customer's Electrical Installation
Retail Customer's Electrical Installation must comply with the requirements set forth in Section 5.4, ELECTRICAL INSTALLATION AND
RESPONSIBILITIES, Section 5.5, RETAIL CUSTOMER'S ELECTRICAL LOAD, and Section 5.6, LIMITATIONS ON USE OF
DISTRIBUTION SERVICE of this Tariff.
6.1.2.2.1.4 Space Requirements
Retail Customer grants to or secures for Company, at Retail Customer's expense, any rights-of-way on property owned or controlled by
Retail Customer which are necessary for Company to install Delivery System facilities for the purpose of delivering Electric Power and
Energy to the Retail Customer.
Retail Customer provides, without cost to Company, suitable space on Retail Customer's premises for the installation of Delivery System
facilities necessary to transport Electric Power and Energy to the Retail Customer and for installation of Company's metering facilities.
6.1.2.2.2 Overhead Delivery Service
6.1.2.2.2.1 Standard Service Drop
Company provides, installs, and maintains Service Drcp to the Point of Delivery approved by Company. Retail Customer provides
82
Tariff for Retail Delivery Service
Oncor Electric Delivery Company
6.1.2 Discretionary Service Charges Sheet: 2
Applicable: Entire Certified Service Area Page 2 of 5
Effective Date: January 1 2002 Revision: Original
point of attachment, which is acceptable to Company so that Service Drop meets requirements of all applicable codes. Company may
furnish a bracket (such as service mast bracket, eye bolt, house knob, metal clevis, etc.) to be installed on Retail Customer's Premises
at the point of attachment for Company's service drop. Company may install bracket on Retail Customer's wood structure or building
where Retail Customer provides visible support acceptable to Company for bracket. For structures other than wood, Retail Customer
provides adequate support approved by Company and installs bracket.
6.1.2.2.2.2 Service Entrance Conductor
Retail Customer's Service Entrance Conductors are terminated on the outside of the service head and will not be less than 24 inches or
the minimum length required by local ordinances, whichever is greater. The connections between the Retail Customer's service entrance
conductors and the Company's Service Drop conductors are made by Company.
6.1.2.2.2.3 Connections at Point of Delivery
Company makes connections of Company's conductors to Retail Customer's conductors at the Point of Delivery.
6.1.2.2.3 Underground Delivery Service
Underground service is provided to Retail Customer under the following conditions:
a) Location and routing of Company's Delivery System is determined by Company
b) Prior to beginning of construction, Retail Customer provides easements at no cost to Company for the underground conductors,
padmount transformers and associated equipment.
c) Company may extend its conductors to Retail Customer's switchgear or service entrance enclosure when Company considers
such conductors as being outside of building.
d) Before the installation of Company's underground Delivery System facilities, Retail Customer completes rough site grading,
establishes final grade along the conductor route, and clears area of all obstructions. Any installation of obstructions (such as
asphalt or concrete walk, driveway, street, alley, parking facilities, etc.) which interfere with the installation of Company facilities will
be corrected by and at the expense of Retail Customer. No change is made in the grade along the conductor route or easement
without consent of Company. Any change in grade which requires the lowering or raising of electrical conductors or associated
equipment is at the expense of Retail Customer.
e) Competitive Retailer or Retail Customer pays any amount due under this Rate Schedule, as applicable.
6.1.2.2.3.1 Delivery Service from Company's Existing Underground Delivery System
In certain areas of the Company's Delivery System, since substantial investments have been made in underground service facilities and
overhead service extensions into these areas are impractical and would nullify the benefits of past investments, Company retains the
right to limit Delivery Service to Retail Customer from Company's existing underground Delivery System.
The phase and voltage of Delivery Service in areas served from Company's underground Delivery System may be limited to that which
can be provided from existing facilities.
6.1.2.2.3.2 Service Lateral
Company furnishes, installs and maintains the Service Lateral connecting Company's Delivery System to Retail Customer's Point of
Delivery. Where Retail Customer installs or plans to install obstructions (asphalt or concrete walk, driveway, retaining wall, paved
parking lot, etc.) in the path of Company's service lateral, Company will require Retail Customer to provide and install Raceway for
Company's service lateral to Company specifications. Should Retail Customer not install necessary Raceway for Service Lateral prior to
the installation of obstructions or should Retail Customer's service route change after the installation of obstructions where no Raceway
exists for new Service Lateral location, Retail Customer must make the necessary Raceway installations prior to Service Lateral
installations.
6.1.2.2.3.3 Transformer and Equipment
Company provides, installs, owns and maintains transformer and equipment for Retail Customers taking service at secondary voltage.
Retail Customer provides without cost to Company space on Retail Customer's Premises suitable to Company for the installation of
transformers and other equipment required to provide Delivery Service to the Retail Customer. Retail Customer provides adequate and
accessible pad space as determined by Company to allow transformer equipment maintenance and replacement. Required space for
equipment considers any above ground construction or portion of a building which extends over the pad. Passageways adequate to
accommodate trucks or other necessary lifting and hauling equipment are provided by Retail Customer to allow replacement of
transformers and other devices.
6.1.2.2.3.4 Vault
When a vault for Company's transformers, switchgear or other facilities is required on Retail Customer's Premises, and location is
acceptable to Company, Retail Customer provides and installs the vault in accordance with Company specifications. If the vault is
83
Tariff for Retail Delivery Service
Oncor Electric Delivery Company
6.1.2 discretionary Service Charges Sheet: 2
Applicable: Entire Certified Service Area Page 3 of 5
0111
Effective Date: January 1, 2002 Revision: Original
located inside or under Retail Customer's building, Retail Customer provides the necessary Raceway for Company's conductors so that
such conductors are Conductors Considered Outside of Building. Company installs in the vault, transformers and/or other facilities
necessary to provide Delivery Service to the Retail Customer. The Retail Customer is responsible for shielding or limiting utilization of
adjoining building sections as necessary to limit noise and electromagnetic emissions. The Retail Customer is responsible for the cost of
conducting studies and measurements to project or determine levels of emissions. Retail Customer takes Delivery Service at the
secondary terminals of Company transformers or other facilities located in the vault as specified by Company.
Under any other conditions, Retail Customer takes service outside the building.
6.1.2.2.4 Meter
All Meters used to measure the amount of Electric Power and Energy delivered by Company for use in the calculation of Delivery System
Charges are owned, installed and maintained by Company. All Meter transformers and transockets shall be furnished and owned by
Company for these purposes. Where Retail Customer requests the installation of a Meter other than Company's standard Meter, Retail
Customer pays the appropriate installation and monthly maintenance cost in accordance with the applicable rate schedule in Section
6.1.2 of this Tariff.
Company may, at its option and at its expense, relocate any Company-owned meter, in case of a relocation made necessary due to
inaccessibility, hazardous location, or dangerous conditions for which Retail or Wholesale Customer is responsible, or in order to prevent
a recurrence of unauthorized use of Delivery Service or tampering with Company equipment, Retail Customer's Competitive Retailer or
Wholesale Customer may be required to relocate the metering equipment to a location agreeable to Company.
Under no circumstances is any meter installation to be moved or relocated except as authorized by Company
6.1.2.2.5 Standard Facility Extensions: Distribution
Extension of standard facilities to permanent Retail Customers within Company's certificated area where the estimated cost to extend
facilities does not exceed the standard allowances stated herein, will be provided to Retail Customers at no cost. The cost of the
extension is calculated using the route of the new line, as determined by Company, from Company Delivery System facilities, which
includes primary, secondary, and service drop for overhead facilities or service lateral for underground facilities, to the Point of Delivery.
When two or more applications for Delivery Service from the same extension are received prior to starting construction of the extension,
the maximum allowance is the sum of each individual applicant's standard allowance. Retail Customer makes a one-time
non-refundable CIAC for the cost of providing an extension in excess of the stated allowances.
I ,
Company makes extension of electric service to Retail Customer's electrical installation so as to minimize the cost of such extension.
Extension is normally made at no cost to Retail Customer except in those instances where the requested extension of Company's
facilities is not economically justified.
6.1.2.2.5.1 Overhead Extensions for Small Loads
Company makes extension of overhead single phase electric service without charge to permanent Retail Customers having an estimated
maximum annual demand of less than 20 kW, for a distance of up to 300 feet if electric service desired by Retail Customer is of the type
and character of electric service which Company provides. The distance of the extension is measured using the route of the new line
from Company distribution facilities, which includes primary, secondary and service drop to the point of delivery. When two or more
applications for electric service from the same extension are received prior to starting construction of the line extension, the maximum
length of the overhead extension provided at no charge is up to the number of applicants times 300 feet. Retail Customer makes a one
time non-refundable contribution in aid of construction for the cost of providing an extension in excess of such amount based upon an
estimated cost per foot for the type of facility installed.
6.1.2.2.5.2 Underground Extensions for Small Loads
Company makes extension of underground single phase electric service without charge to permanent Retail Customers having an
estimated maximum annual demand of less than 20 kW if electric service desired by Retail Customer is of the type and character of
electric service which Company provides, and if the cost of the extension does not exceed an amount equivalent to 300 feet of overhead
radial single phase circuit. The cost of the extension is calculated using the route of the new line from Company distribution facilities,
which includes primary, secondary and service lateral to the point of delivery. When two or more applications for electric service from the
same extension are received prior to starting construction of the line extension, the extension will be provided without charge if the total
cost of the extension does not exceed an amount equal to the number of applicants times an amount equivalent to 300 feet of overhead
radial circuit. Retail Customer makes a one time non-refundable contribution in aid of construction for the cost of providing an extension
in excess of such amount based upon either an estimated cost per foot for the type of facility installed or a specific cost study.
6.1.2.2.5.3 Calculation of Contribution in Aid of Construction ("CIAC") for All Other Extensions
The amount of the CIAC for Delivery System Construction Service is determined by the appropriate formula be'c,v if the amount
calculated below is zero or negative, no contribution in aid of construction is required for provision of Construction Service. All
calculations and component costs used in the eetermination of the contribution in aid or construction will be provide, to Retail Customer
upon request.
84
Tariff for Retail Delivery Service
Oncor Electric Delivery Company
6.1.2 Discretionary Service Charges Sheet: 2
Applicable: Entire Certified Service Area Page 4 of 5
Effective Date: January 1 2002 Revision: Original
Retail Customers with a Maximum kW Demand Greater Than or Equal to 20 kW
Amount = Direct Cost — (Standard Allowance Factor x Maximum kW Demand)
Direct Cost - The current average cost of each component of Delivery System facilities necessary to provide
Delivery Service to Retail Customer, determined by a computer estimate of all necessary
expenditures, including, but not limited to metering, services, transformers, and rearrangement of
existing Delivery System facilities. This cost includes only the cost of the above-mentioned facilities
that are necessary to provide Delivery Service to the particular Retail Customer requesting service
and does not include the costs of facilities necessary to meet future load growth anticipated to
develop within two (2) years, or to improve the service reliability in the general area for the benefit of
existing and future Retail Customers.
Standard Allowance Factor - The appropriate factor set forth below for all Retail Customers with a Maximum kW Demand greater
than or equal to 20 kW, t rate class.
Rate Class Standard Allowance Factor
General Service Secondary i $98/kW
General Service Primary S94/kW
High Voltage $53/kW
Maximum kW Demand - i Company's estimate of Retail Customer's maximum 15 -minute kW demand based on expected
usage patterns and load or equipment data supplied by Retail Customer,
6.1.2.2.5.4 Retail Customer Requested Facility Upgrades
In the case of upgrades to Delivery System facilities necessitated by Retail Customer adding load in excess of existing Delivery System
facility capacity, only the cost of the facility upgrades that are attributable to the Retail Customer's request are included in calculating a
CIAC. The Maximum kW Demand amounts used in the CIAC calculation found in the subsection above shall reflect only the additional
estimated kW demand directly attributable to the added load.
r .
6.1.2.2.5.5 Unused Allowance
Under no circumstance shall any unused allowance be paid or credited to the Retail Customer or used to reduce the cost for installation
of non-standard distribution facilities or non-standard street lighting facilities.
6.1.2.2.6 Non -Standard Facility Extensions: Distribution
If Retail Customer desires Delivery System service which involves non-standard facilities as described in Section 6.1.2.2.1.2 of this Tariff,
in addition to the cost in excess of the standard allowance described in Section 6.1.2.2.5.3 for construction of standard facilities, if any,
Retail Customer pays Company prior to Company's construction of non-standard facilities the total estimated cost of all non-standard
facilities to meet Retail Customer's request.
Company may terminate the provision of any Delivery Service utilizing non-standard facilities at the end of the contract term, or in the
absence of a contract term, on reasonable notice to Retail Customer's Competitive Retailer.
6.1.2.2.7 Temporary Delivery System Facilities: Distribution
Retail Customer pays Company prior to Company's constructing temporary Delivery System facilities an amount equal to the estimated
cost of installing and removing the facilities, plus the estimated costs of materials to be used which are unsalvageable after removal of
the installation as set forth in Section 6.1 .2 of this Tariff.
6.1.2.2.8 Removal and Relocation of Company's Facilities: Distribution
Company may remove or relocate Company facilities at Retail Customer's request. If removal or relocation of Company facilities is
associated with a change in Retail Customer's distribution requirements that results in additional revenue to the Company, such removal
or relocation costs will be included as a direct cost in the calculation of the contribution in aid of construction, and the amount due from
Retail Customer will be based on the provisions of Section 6.1.2.2.5, `Calculation of Contribution in Aid of Construction". The Maximum
kVA! Demand amounts used in the CIAC calculation shall reflect only the additional kW demand directly attributing to the added revenue
to the Company. In all other cases, Retail Customer pays the total cost of removing or relocating such facilities.
6.1.2.2.9 General: Transmission and Transformation Facilities
Transmission facilities are those facilities operated at 60 kilovolts or above. Transformation facilities are those facilities from the high
voltage side of the load serving substation transformer through the remainder of the substation. Company is responsible for the
construction, extension, upgrade, or alteration of transmission and transformation facilities necessary to connect Retail Customer's
85
Tariff for Retail Delivery Service
Oncor Electric Delivery Company
6.1.2 Discretionary Service Charges Sheet: 2
Vy1<
Applicable: Entire Certified Service Area Page 5 of 5
l Effective Date: January 1, 2002 Revision Ori final
Point of Delivery to Company's Delivery System in conjunction with Section 5.7, FACILITIES EXTENSION POLICY and the terms and
conditions contained herein. Company makes extension of Delivery System facilities to Retail Customer's electrical installation so as to
minimize the cost of such extension. Extension is normally made at no cost to Retail Customer except in those instances where the
installation of non-standard facilities is requested. In these instances, a contribution in aid of construction ("CIAC") is required from Retail
Customer.
6.1.2.2.9.1 Standard Facilities
Company's standard facilities consist of the overhead Delivery System facilities necessary to transport Electric Power and Energy from a
single, transmission or transformation source to Retail Customer at one Point of Delivery, with one standard Meter, at one of Company's
available standard voltages.
6.1.2.2.9.2 Non-standard Facilities
Non-standard facilities include but are not limited to a two-way feed, underground facilities, automatic and manual transfer switches,
service through more than one point of delivery, redundant facilities, facilities in excess of those normally required for service, or facilities
necessary to provide service at a non-standard voltage.
If Retail Customer desires Delivery Service utilizing non-standard facilities, as described above, and not covered elsewhere in these
Service Regulations, then Company may construct such facilities pursuant to Section 5.7.5, NON-STANDARD FACILITIES and Section
6.1.2.2.11, NON-STANDARD FACILITY EXTENSIONS.
6.1.2.2.9.3 Retail Customer's Electrical Installation
Retail Customer's Electrical Installation must comply with the requirements set forth in Section 5.4, ELECTRICAL INSTALLATION AND
RESPONSIBILITIES, Section 5.5, RETAIL CUSTOMER'S ELECTRICAL LOAD, and Section 5.6, LIMITATIONS ON USE OF
DISTRIBUTION SERVICE of tf�is Tariff. Company makes connections of Company's conductors to Retail Customer's conductors at the
Point of Delivery.
6.1.2.2.9.4 Space Requirements
Retail Customer grants to or secures for Company, at Retail Customer's expense, any rights-of-way on property owned or controlled by
Retail Customer which are necessary for Company to install Delivery System facilities for the purpose of delivering Electric Power and
Energy to the Retail Customer.
° Retail Customer provides, without cost to Company, suitable space on Retail Customer's premises for the installation of Delivery System
facilities necessary to transport Electric Power and Energy to the Retail Customer and for installation of Company's metering facilities.
6.1.2.2.10 Standard Facility Extension: Transmission and Transformation
Extension of standard transmission and transformation facilities to permanent Retail Customers within Company's certificated area will
be provided to Retail Customers at no cost. The cost of the standard extension is calculated using the route of the new line, as
determined by Company, from Company Delivery System facilities, which includes transmission and transformation facilities, to the Point
of Delivery.
6.1.2.2.10.1 Retail Customer Requested Facility Upgrades
In the case of upgrades to transmission or transformation facilities necessitated by Retail Customer adding load in excess of existing
facility capacity, standard facility upgrades that are attributable to the Retail Customer's request will be provided to Retail Customer at no
cost.
6.1.2.2.11 Non -Standard Facility Extensions: Transmission and Transformation
If Retail Customer desires transmission or transformation service which involves non-standard facilities as described in Section 6.1.2.2.9
of this Tariff, Retail Customer pays Company prior to Company's construction of non-standard facilities the total estimated cost of all non-
standard facilities to meet Retail Customer's request, unless Company and Retail Customer agree on another mutually acceptable
arrangement.
Company may terminate the provision of any Delivery Service utilizing non-standard facilities at the end of the contract term, or in the
absence of a contract term, on reasonable notice to Retail Customer's Competitive Retailer.
6.1.2.2.12 Temporary Delivery System Facilities: Transmission and Transformation
Retail Customer pays Company prior to Company's constructing temporary transmission or transformation facilities an amount equal to
the estimated cost of installing and removing the facilities, plus the estimated costs of materials to be used which are unsalvageable after
removal of the installation.
86
Tariff for Retail Delivery Service
Oncor Electric Delivery Company
6.1.2 Discretionary Service Charges Sheet: 3
Applicable: Entire Certified Service Area Page 1 of 1
Effective Date: January 1 2002 Revision: Original
6.1,2.3 - Distributed Generation
Company will allow the interconnection and parallel operation of on-site Distributed Generation ("DG") with Company's distribution
system in accordance with Commission Substantive Rules 25.211 and 25.212. For purposes of this Section, Distributed Generation
refers to an electrical generating facility located at a Retail Customer's point of delivery of ten megawatts (10 MW) or less and connected
at a voltage less than or equal to 60 kilovolts (W).
Sales of power by a distributed generator in the wholesale market are subject to the provisions of Commission Substantive Rules.
Interconnection Requirements
Availability
Retail Customers requesting interconnection and parallel operation of Distributed Generation shall complete the Commission approved
Application for Interconnection and Parallel Operation of Distributed Generation with the Utility System contained in Section 6.3 of these
Service Regulations.
Pre -Interconnection Studies
Company shall perform pre -interconnection studies, which shall include a service study, coordination study, and utility system impact
study, as needed in compliance with Commission Substantive Rules 25.211 and 25.212. In instances where such studies are deemed
necessary, the scope of such studies shall be based on the characteristics of the particular distributed generation facility to be
interconnected and the Company's distribution system at the specific proposed location. Company shall charge fees for Pre -
Interconnection Studies pursuant to the applicable rate schedule contained in Section 6.1.2 of this Tariff.
Agreement
Upon determination that the Retail Customer's facility is consistent with the safe and reliable operation of the Company's distribution
system and Retail Customer elects to pursue interconnection and parallel operation of Retail Customer's Distributed Generation facility,
Company and Retail Customer shall enter into an Agreement for Interconnection and Parallel Operation of Distributed Generation
contained in Section 6.3 of this Tariff, which sets forth the contractual conditions under which Company and Retail Customer agree that
one or more facilities may be interconnected with the Company's distribution system.
Technical Requirements
Retail Customer's installation must comply with the technical requirements and Retail Customer must comply with procedures set forth in
Commission Substantive Rule 25.212 for safe and effective connection and operation of Distributed Generation, which describes typical
interconnection requirements. Company may require Retail Customer to install and use of more sophisticated protective devices and
operating schemes when the DG facility is exporting power to the Company's system or when otherwise required due to specific
interconnection location and conditions.
Distribution Service to DG
Distribution service provided to a Retail Customer operating Distributed Generation in parallel with the Company's distribution system is
available pursuant to this Tariff and agreements for such distribution service.
87
Tariff for Retail Delivery Service
��noor�|e�thc[��|iveryCnrnpany
V.1.2Dion�8onaryGomiceCharges Sheet: 4
Applicable: Entire Certified Service Area Page 1 of 1
Effective Date: January 1, 2002
Revii!sion: Original
6.1.2.4 - Additional Discretionary Charges
88
4304M
AMENDMENT 2002
(Included in Ordinance Amending Franchise Agreement with TXU GAS)
A. Effective January 1, 2002, the consideration payable by TXU
Gas for the rights and privileges granted to TXU Gas by the
franchise ordinance heretofore duly passed by the governing
body of this City and duly accepted by TXU Gas is hereby
changed to be four percent (4%) of the Gross Revenues, as
defined in Section 1.13. below, received by TXU Gas. Except
as otherwise provided in Section 1.C., the date of payment
of the consideration shall remain as stated in Ordinance No.
86-02 as amended by Ordinance No. 94-104, provided
however, that Section 2 of Ordinance No. 94-104 shall
remain unchanged as it relates to the percent of gross
receipts received by TXU Gas from the sale of gas to
governmental consumers and users within the corporate
limits of the City that own and operate a regional airport
pursuant to the Municipal Airports Act, as amended.
B. "Gross Revenues" shall mean all revenue derived or
received, directly or indirectly, by the Company from or in
connection with the operation of the System within the
corporate limits of the City and including, without limitation:
all revenues received by the Company from the sale
of gas to all classes of customers within the City;
(2) all revenues received by the Company from the
transportation of gas through the pipeline system of
Company within the City to customers located within
the City;
(3) the value of gas transported by Company for
Transport Customers through the System of
Company within the City ("Third Party Sales"), with
the value of such gas to be reported by each
Transport Customer to the Company, provided,
however, that should a Transport Customer refuse to
furnish Company its gas purchase price, Company
shall estimate same by utilizing TXU Gas
Distribution's monthly industrial Weighted Average
Cost of Gas, as reasonably near the time as the
transportation service is performed; and
(4) "Gross revenues" shall include:
(a) other revenues derived from the following
`miscellaneous charges':
L charges to connect, disconnect, or
reconnect gas within the City;
ii. charges to handle returned checks from
consumers within the City;
such other service charges and charges
as may, from time to time, be authorized
in the rates and charges on file with the
City; and
iv. contributions in aid of construction"
("CIAC");
(b) revenues billed but not ultimately collected or
received by the Company;
(c) gross receipts fees; and
(d) revenues from the lease, license or use of City
Rights -of -Way as set forth in Section 1. F of
this Ordinance.
(5) "Gross revenues" shall not include:
(a) the revenue of any Person including, without
limitation, an affiliate, to the extent that such
revenue is also included in Gross Revenues of
the Company;
(b) sales taxes; and
(c) any interest income earned by the Company;
and
(d) all monies received from the lease or sale of
real or personal property, provided, however,
that this exclusion does not apply to the lease
of facilities within the City's right of way.
C. Calculation and Payment of Franchise Fees Based on CIAC
(1) The franchise fee amounts based on "Contributions in
aid of Construction" ("CIAC") shall be calculated on an
annual calendar year basis, i.e., from January 1
through December 31 of each calendar year.
(2) The franchise fee amounts that are due based on
CIAC shall be paid at least once annually on or before
April 30 each year based on the total CIAC recorded
during the preceding calendar year.
D. Effect of Other Municipal Franchise Ordinance Fees
Accepted and Paid by TXU Gas
(1) If TXU Gas should at any time after the effective date
of this Ordinance agree to a new municipal franchise
ordinance, or renew an existing municipal franchise
ordinance, with another municipality, which municipal
franchise ordinance determines the franchise fee
owed to that municipality for the use of its public
rights-of-way in a manner that, if applied to the City,
would result in a franchise fee greater than the
amount otherwise due City under this Ordinance, then
the franchise fee to be paid by TXU Gas to City
pursuant to this Ordinance shall be increased so that
the amount due and to be paid is equal to the amount
that would be due and payable to City were the
franchise fee provisions of that other franchise
ordinance applied to City.
(2) The provisions of this Subsection D apply only to the
amount of the franchise fee to be paid and do not
apply to other franchise fee payment provisions,
including without limitation the timing of such
payments.
E. TXU Gas Franchise Fee Recovery Tariff
(1) TXU Gas may file with the City a tariff amendment(s)
to provide for the recovery of the franchise fees under
this amendment.
(2) City agrees that (i) as regulatory authority, it will adopt
and approve the ordinance, rates or tariff which
provide for 100% recovery of such franchise fees as
eMIN part of TXU Gas' rates; (ii) if the City intervenes in any
k regulatory proceeding before a federal or state
agency in which the recovery of TXU Gas' franchise
fees is an issue, the City will take an affirmative
position supporting 100% recovery of such franchise
fees by TXU Gas and; (iii) in the event of an appeal of
any such regulatory proceeding in which the City has
intervened, the City will take an affirmative position in
any such appeals in support of the 100% recovery of
such franchise fees by TXU Gas. ,
(3) City agrees that it will take no action, nor cause any
other person or entity to take any action, to prohibit
the recovery of such franchise fees by TXU Gas.
F. Lease of Facilities Within City's Rights -of -Way. TXU Gas
shall have the right to lease, license or otherwise grant to a
party other than TXU Gas the use of its facilities within the
City's public rights-of-way provided: (i) TXU Gas first notifies
the City of the name of the lessee, licensee or user; the type
of service(s) intended to be provided through the facilities;
and the name and telephone number of a contact person
associated with such lessee, licensee or user; (ii) TXU Gas
makes the franchise fee payment due on the revenues from
such lease or license pursuant to Sections I.A. and I.B. of
this Ordinance; and (iii) TXU Gas receives compensation
and/or revenue for such license or lease for which TXU Gas
pays a franchise fee to the City. This authority to Lease
Facilities Within City's Rights -of -Way shall not affect any
such lessee, licensee or user's obligation, if any, to pay
franchise fees.
0 �
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS, AMENDING THE EXISTING
ELECTRIC FRANCHISE BETWEEN THE CITY OF
GRAPEVINE, TEXAS AND ONCOR ELECTRIC
DELIVERY COMPANY TO PROVIDE FOR A
DIFFERENT CONSIDERATION; PROVIDING FOR
ACCEPTANCE BY ONCOR ELECTRIC DELIVERY
COMPANY; PROVIDING FOR A SEVERABILITY
CLAUSE; PROVIDING FOR A REPEALING CLAUSE;
AND PROVIDING AN EFFECTIVE DATE
WHEREAS, Oncor Electric Delivery Company, successor in interest to TXU
Electric Company (hereinafter called "Oncor") is engaged in the business of providing
electric utility service within the City of Grapevine, Texas (hereinafter called "City"), and
is using the public streets, alleys, grounds and rights -of -ways within the City for that
purpose under the terms of a franchise ordinance heretofore duly passed by the
governing body of the City and duly accepted by Oncor; and,
WHEREAS, the City and Oncor desire to amend said franchise ordinance to
provide for a different consideration.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TARRANT COUNTY, TEXAS, THAT:
Section 1. The existing electric franchise ordinance between the City of
Grapevine, Texas, and Oncor Electric Delivery Company successor to the transmission
and distribution assets of Texas Utilities Electric Company, Ordinance No. 60-12 as
amended by Ordinance No. 93-33 and Ordinance No. 2001-85, is hereby amended to
read as follows:
Amendment 2002:
A. Effective January 1, 2002, the franchise fee due from Oncor shall
be a sum comprised of the following:
(1) a charge, as authorized by Section 33.008(b) of PURA,
based on each kilowatt hour of electricity delivered by Oncor
to each retail customer whose consuming facility's point of
delivery is located within the City's municipal boundaries and
as specified by Oncor to the City by letter dated
January 21, 2002.
(a) The franchise fee due pursuant to Section 33.008(b)
� of PURA shall be payable in accordance with the
existing electric franchise Ordinance No. 60-12 and
Ordinance No. 93-33 and Ordinance No. 2001-85;
and
(2) a sum equal to four percent (4%) of gross revenues received
by Oncor from services identified in its "Tariff for Retail
Delivery Service", Section 6.1.2, "Discretionary Service
Charges," items DD1 through DD24, that are for the account
or benefit of an end-use retail electric consumer.
(a) The franchise fee amounts based on "Discretionary
Service Charges" shall be calculated on an annual
calendar year basis, i.e., from January 1 through
December 31 of each calendar year.
(b) The franchise fee amounts that are due based on
"Discretionary Service Charges" shall be paid at least
once annually on or before April 30 each year based
on the total "Discretionary Service Charges" received
during the preceding calendar year.
(c) Oncor shall pay franchise payments to the City based
on the "Discretionary Service Charges" as set forth
herein beginning January 1, 2003.
B. Oncor Franchise Fee Recovery Tariff
(1) Oncor may file a tariff amendment(s) to provide for the
recovery of the franchise fee . on Discretionary Service
Charges.
(2) City agrees (i) to the extent the City acts as regulatory
authority, to adopt and approve that portion of any tariff
which provides for 100% recovery of the franchise fee on
Discretionary Service Charges; (ii) in the event the City
intervenes in any regulatory proceeding before a federal or
state agency in which the recovery of the franchise fees on
such Discretionary Service Charges is an issue, the City will
take an affirmative position supporting the 100% recovery of
such franchise fees by Oncor and; (iii) in the event of an
appeal of any such regulatory proceeding in which the City
has intervened, the City will take an affirmative position in
any such appeals in support of the 100% recovery of such
franchise fees by Oncor.
ORD. NO. 2
(3) City agrees that it will take no action, nor cause any other
person or entity to take any action, to prohibit the recovery of
such franchise fees by Oncor.
Section 2. In all respects, except as specifically and expressly amended by
this ordinance, the existing effective franchise ordinance, Ordinance No. 60-12 as
amended by Ordinance No. 93-33 and Ordinance No. 2001-85, heretofore duly passed
by the governing body of the City and duly accepted by Oncor shall remain in full force
and effect according to its terms until said franchise ordinance terminates as provided
therein.
Section 3. This ordinance shall take effect upon its final passage and Oncor's
acceptance. Oncor shall, within thirty (30) days from the passage of this ordinance, file
its written acceptance of this ordinance with the Office of the City Secretary in
substantially the following form:
To the Honorable Mayor and City Council:
Oncor Electric Delivery
undersigned authorized
this the _ day of
Company, acting by and through the
officer, hereby accepts in all respects, on
7 20—, Ordinance No.
amending the current electric franchise between
the City and Oncor and the same shall constitute and be a binding
contractual obligation of Oncor and the City.
Oncor Electric Delivery Company
-2
Vice President
Section 4. Should any word, sentence, paragraph, subdivision, clause, phrase
or section of this ordinance, or the ordinances of the City, as amended hereby, be
adjudged or held to be void or unconstitutional, the same shall not affect the validity of
the remaining portions of said ordinance or the ordinances of the City, as amended
hereby, which shall remain in full force and effect.
Section 5. All ordinances of the City of Grapevine, Tarrant
conflict with the provisions of this ordinance be, and the same are
provided, however that all other provisions of said ordinances not
provisions of this ordinance shall remain in full force and effect.
ORD. NO. 3
County, Texas, in
hereby, repealed;
in conflict with the
1111,11111" passage
6. This ordinance shall take effect immediately from and after its
ge and publication in accordance with its provisions of the Charter of the City of
Grapevine, and it is accordingly so ordained.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, on this the 3rd day of December, 2002.
ATTEST:
ORD. NO. 4
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS, AMENDING THE EXISTING GAS
FRANCHISE BETWEEN THE CITY OF GRAPEVINE,
TEXAS, AND TXU GAS COMPANY TO PROVIDE FOR A
DIFFERENT CONSIDERATION AND TO AUTHORIZE THE
LEASE OF FACILITIES WITHIN THE CITY'S RIGHTS-OF-
WAY; PROVIDING FOR ACCEPTANCE BY TXU GAS
COMPANY; PROVIDING FOR A SEVERABILITY CLAUSE;
PROVIDING FOR A REPEALING CLAUSE; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, TXU Gas Company (hereinafter called "TXU Gas") is, through its
TXU Gas Distribution division, engaged in the business of furnishing and supplying gas
to the general public in the City of Grapevine, Texas (hereinafter called "City"), including
the transportation, delivery, sale, and distribution of gas in, out of, and through the City
for all purposes, and is using the public streets, alleys, grounds and rights -of -ways
within the City for that purpose under the terms of a franchise ordinance heretofore duly
passed by the governing body of the City and duly accepted by TXU Gas; and,
WHEREAS, the City and TXU Gas desire to amend said franchise ordinance to
provide for a different consideration and to authorize the lease of facilities within the
City's rights-of-way.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS, THAT:
Section 1. The existing gas franchise ordinance between the City of
Grapevine, Texas, and TXU Gas Company formerly known as Lone Star Gas
Company, a division of ENSERCH Corporation, Ordinance No. 86-02 as amended by
Ordinance No. 94-104, is amended to read as follows:
Amendment 2002:
A. Effective January 1, 2002, the consideration payable by TXU Gas
for the rights and privileges granted to TXU Gas by the franchise
ordinance heretofore duly passed by the governing body of this City
and duly accepted by TXU Gas is hereby changed to be four
percent (4%) of the Gross Revenues, as defined in Section 1.13.
below, received by TXU Gas. Except as otherwise provided in
Section 1.C., the date of payment of the consideration shall remain
as stated in Ordinance No. 86-02 as amended by Ordinance No.
94-104, provided however, that Section 2 of Ordinance No. 94-104
shall remain unchanged as it relates to the percent of gross
receipts received by TXU Gas from the sale of gas to governmental
consumers and users within the corporate limits of the City that own
and operate a regional airport pursuant to the Municipal Airports
Act, as amended.
B. "Gross Revenues" shall mean all revenue derived or received,
directly or indirectly, by the Company from or in connection with the
operation of the System within the corporate limits of the City and
including, without limitation:
(1) all revenues received by the Company from the sale of gas
to all classes of customers within the City;
(2) all revenues received by the Company from the
transportation of gas through the pipeline system of
Company within the City to customers located within the
City;
(3) the value of gas transported by Company for Transport
Customers through the System of Company within the City
("Third Party Sales"), with the value of such gas to be
reported by each Transport Customer to the Company,
provided, however, that should a Transport Customer refuse
to furnish Company its gas purchase price, Company shall
estimate same by utilizing TXU Gas Distribution's monthly
industrial Weighted Average Cost of Gas, as reasonably
near the time as the transportation service is performed; and
(4) "Gross revenues" shall include:
(a) other revenues derived from the following
`miscellaneous charges':
charges to connect, disconnect, or reconnect
gas within the City;
charges to handle returned checks from
consumers within the City;
such other service charges and charges as
may, from time to time, be authorized in the
rates and charges on file with the City; and
iv. contributions in aid of construction" ("CIAC");
ORD. NO. 2
(b) revenues billed but not ultimately collected or
received by the Company;
(c) gross receipts fees; and
revenues from the lease, license or use of City Rights -
of -Way as set forth in Section 1. F of this Ordinance.
(5) "Gross revenues" shall not include:
(a) the revenue of any Person including, without
limitation, an affiliate, to the extent that such revenue
is also included in Gross Revenues of the Company;
(b) sales taxes; and
(c) any interest income earned by the Company; and
(d) all monies received from the lease or sale of real or
personal property, provided, however, that this
exclusion does not apply to the lease of facilities
within the City's right of way.
C. Calculation and Payment of Franchise Fees Based on CIAC
The franchise fee amounts based on "Contributions in aid of
Construction" ("CIAC") shall be calculated on an annual
calendar year basis, i.e., from January 1 through December
31 of each calendar year.
(2) The franchise fee amounts that are due based on CIAC shall
be paid at least once annually on or before April 30 each
year based on the total CIAC recorded during the preceding
calendar year.
D. Effect of Other Municipal Franchise Ordinance Fees Accepted and
Paid by TXU Gas
If TXU Gas should at any time after the effective date of this
Ordinance agree to a new municipal franchise ordinance, or
renew an existing municipal franchise ordinance, with
another municipality, which municipal franchise ordinance
determines the franchise fee owed to that municipality for the
use of its public rights-of-way in ef manner that, if applied to
the City, would result in a franchise fee greater than the
amount otherwise due City under this Ordinance, then the
ORD. NO. 3
cfranchise fee to be paid by TXU Gas to City pursuant to this
�,i' Ordinance shall be increased so that the amount due and to
be paid is equal to the amount that would be due and
payable to City were the franchise fee provisions of that
other franchise ordinance applied to City.
(2) The provisions of this Subsection D apply only to the amount
of the franchise fee to be paid and do not apply to other
franchise fee payment provisions, including without limitation
the timing of such payments.
E. TXU Gas Franchise Fee Recovery Tariff
(1) TXU Gas may file with the City a tariff amendment(s) to
provide for the recovery of the franchise fees under this
amendment.
(2) City agrees that (i) as regulatory authority, it will adopt and
approve the ordinance, rates or tariff which provide for 100%
recovery of such franchise fees as part of TXU Gas' rates;
(ii) if the City intervenes in any regulatory proceeding before
a federal or state agency in which the recovery of TXU Gas'
franchise fees is an issue, the City will take an affirmative
v3
position supporting 100% recovery of such franchise fees by
TXU Gas and; (iii) in the event of an appeal of any such
regulatory proceeding in which the City has intervened, the
City will take an affirmative position in any such appeals in
support of the 100% recovery of such franchise fees by TXU
Gas.
(3) City agrees that it will take no action, nor cause any other
person or entity to take any action, to prohibit the recovery of
such franchise fees by TXU Gas.
F. Lease of Facilities Within City's Rights -of -Way. TXU Gas shall have
the right to lease, license or otherwise grant to a party other than
TXU Gas the use of its facilities within the City's public rights-of-way
provided: (i) TXU Gas first notifies the City of the name of the
lessee, licensee or user; the type of service(s) intended to be
provided through the facilities; and the name and telephone number
of a contact person associated with such lessee, licensee or user;
(ii) TXU Gas makes the franchise fee payment due on the revenues
from such lease or license pursuant to Sections I.A. and I.B. of this
Ordinance; and (iii) TXU Gas receives compensation and/or
revenue for such license or lease for which TXU Gas pays a
franchise fee to the City. This authority to Lease Facilities Within
ORD. NO. 4
City's Rights -of -Way shall not affect any such lessee, licensee or
user's obligation, if any, to pay franchise fees.
Section 2. In all respects, except as specifically and expressly amended by
this ordinance, the existing effective franchise ordinance, Ordinance No. 94-104,
heretofore duly passed by the governing body of the City and duly accepted by TXU
Gas shall remain in full force and effect according to its terms until said franchise
ordinance terminates as provided therein.
Section 3. This ordinance shall take effect upon its final passage and TXU
Gas' acceptance. TXU Gas shall, within thirty (30) days from the passage of this
ordinance, file its written acceptance of this ordinance with the Office of the City
Secretary in substantially the following form:
To the Honorable Mayor and City Council:
TXU Gas Distribution, a division of TXU Gas Company, acting by
and through the undersigned authorized officer, hereby accepts in
all respects, on this the day of , 20 1
Ordinance No. amending the current gas franchise
between the City and TXU Gas and the same shall constitute and
be a binding contractual obligation of TXU Gas and the City.
TXU Gas Distribution
A division of TXU Gas Company
0
Vice President
Section 4. Should any word, sentence, paragraph, subdivision, clause, phrase
or section of this ordinance, or the ordinances of the City, as amended hereby, be
adjudged or held to be void or unconstitutional, the same shall not affect the validity of
the remaining portions of said ordinance or the ordinances of the City, as amended
hereby, which shall remain in full force and effect.
Section 5. All ordinances of the City of Grapevine, Texas, in conflict with the
provisions of this ordinance be, and the same are hereby, repealed; provided, however
that all other provisions of said ordinances not in conflict with the provisions of this
ordinance shall remain in full force and effect.
Section 6. This ordinance shall take effect immediately from and after its
passage and publication in accordance with its provisions of the Charter of the City of
Grapevine, and it is accordingly so ordained.
ORD. NO. 5
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, on this the 3rd day of December, 2002.
ATTEST:
ORD. NO. 6