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Home My Public Portal AboutResolution No. 402-12 06-19-2012RESOLUTION N0. 402-12 A RESOLUTION AUTHORIZING CONTINUED PARTICIPATION WITH THE STEERING COMMITTEE OF CITIES SERVED BY ONCOR; AND AUTHORIZING THE PAYMENT OF 10 CENTS PER CAPITA TO THE STEERING COMMITTEE TO FUND REGULATORY AND RELATED ACTIVITIES RELATED TO ONCOR ELECTRIC DELIVERY COMPANY, LLC R.~ e.~n~R~p WHEREAS, the City of 1~It~s is a regulatory authority under the Public Utility Regulatory Act (PURA) and has exclusive original jurisdiction over the rates and services of Oncor Electric Delivery Company, LLC (Oncor) within the municipal boundaries of the city; and WHEREAS, the Steering Committee has historically intervened in Oncor (formerly known as TXU) rate proceedings and electric utility related rulemakings to protect the interests of municipalities and electric customers residing within municipal boundaries; and WHEREAS, the Steering Committee is participating in Public Utility Commission dockets and projects, as well as court proceedings, affecting transmission and distribution utility rates; and WHEREAS, the City is a member of the Steering Committee of Cities Served by Oncor; and WHEREAS, in order for the Steering Committee to continue its participation in these activities which affects the provision of electric utility service and the rates to be charged, it must assess its members for such costs; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ~~~~5 .TEXAS: That the City is authorized to continue its membership with the Steering Committee f Cities Served by Oncor to protect the interests of the City of Gin` N '~ and protect the interests of the customers of Oncor Electric Delivery Company, LLC residing and conducting business within the City limits. The City is further authorized to pay its assessment to the Steering Committee at the rate of ten cents ($0.10) per capita. MEMORANDUM T0: Steering Committee of Cities Served by Oncor FROM: Jay Doegey, Chair DATE: May 24, 2012 RE: Action Needed - 2012 Membership Assessment Invoice Enclosed please find the 2012 Steering Committee of Cities Served by Oncor ("Steering Committee") membership assessment invoice and draft resolution. These items are discussed below. We ask that your city please take action on the membership assessment as soon as possible. Although the Steering Committee does not require that your city take action by resolution to approve the assessment, some members have requested a resolution authorizing payment of the 2012 membership assessment. Payment of the membership assessment fee shall be deemed to be agreement with the terms of the Steering Committee participation agreement. Forward the membership assessment fee and, if applicable, the signed resolution to Jay Doegey, Chair, Steering Committee of Cities Served by Oncor, c/o City Attorney's Office, Mail Stop 63-0300, P.O. Box 90231, Arlington, Texas 76004-3231. Checks should be made payable to: Steering Committee of Cities Served by Oncor. If you have any questions, please feel free to contact me at (817/459-6878) or Thomas Brocato (tbrocato@Iglawfirm.com, 512/322-5857). Membership Assessment Invoice and Resolution The Steering Committee is the most active consumer group advocating the interests of cities and residential and small commercial customers within the cities to keep electric transmission and distribution (i.e., wires) rates reasonable. Steering Committee activities protect the authority of municipalities over the regulated wires service and rates charged by Oncor Electric Delivery Company, LLC. The work undertaken by the Steering Committee has saved cities and ratepayers millions of dollars in unreasonable charges. In order to continue to be an effective voice before the Public Utility Commission, ERCOT, the Legislature, and in the courts, the Steering Committee must have your support. The membership assessment is deposited in an account which funds Steering Committee activities. [n January 2011, Oncor filed an application to increase rates by $353 million; however, the Steering Committee was able to negotiate a settlement with the company that reduced Oncor's rate increase to $136 million, a $217 million savings. Also of importance to cities was that the settlement provided for cities to receive retroactive franchise fee payments that had been previously disallowed by the Public Utility Commission, in addition to increased payments going forward. On December 8, 2011, the Steering Committee approved the 2012 assessment for Steering Committee membership. We are anticipating a busy year for electric utility matters. Based upon the population-based assessment protocol previously adopted by the Steering Committee, the assessment for 2012 is a per capita fee of $0.10. The enclosed invoice represents your city's assessment amount. To assist you in the assessment process, we have attached several documents to this memorandum for your use: • Model resolution approving the 2012 assessment (optional, provided for those cities that have requested a resolution to authorize payment) • Model staff report supporting the resolution • List of Steering Committee members • Assessment invoice If you have any questions, please feel free to contact me at (817/459-6878) or Thomas Brocato (tbrocatoCa lglawfirm.com, 512/322-5857). 2 STEERING COMMITTEE CITIES SERVED BY ONCOR (150) Addison Fate North Richland Hills Allen Flower Mound Oak Leaf Alvarado Forest Hill Oak Point Andrews Fort Worth Odessa Anna Frisco O'Donnell Archer City Frost Ovilla Argyle Gainesville Palestine Arlington Garland Pantego Azle Glenn Heights Paris Bedford Grand Prairie Plano Bellmead Granger Pottsboro Belton Grapevine Prosper Benbrook Gunter Ranger Beverly Hills Haltom City Rhome Big Spring Harker Heights Richardson Breckenridge Heath Richland Hills Bridgeport Henrietta River Oaks Brownwood Hewitt Roanoke Buffalo Highland Park Robinson Burkburnett Honey Grove Rockwall Burleson Howe Rosser Caddo Mills Hurst Rowlett Cameron Hutto Sachse Canton Iowa Park Saginaw Carrollton Irving Seagoville Cedar Hill Jolly Sherman Celina Josephine Snyder Centerville Justin Southlake Cleburne Kaufman Springtown Coahoma Keller Stephenville Colleyville Kerens Sulphur Springs Collinsville Killeen Sunnyvale Comanche Krum Sweetwater Commerce Lake Worth Temple Coppell Lakeside Terrell Copperas Cove Lamesa The Colony Corinth Lancaster Trophy Club Crowley Lewisville Tyler Dallas Lindale University Park Dalworthington Gardens Little Elm Venus DeLeon Little River Academy Waco De Soto Malakoff Watauga Denison Mansfield Waxahachie Duncanville McKinney White Settlement Early Mesquite Wichita Falls Eastland Midland Willow Park Edgecliff Village Midlothian Woodway Euless Murchison Wylie Everman Murphy Fairview Nacogdoches Farmers Branch New Chapel Hill STAFF REPORT ON ASSESSMENT RESOLUTION FOR STEERING COMMITTEE OF CITIES SERVED BY ONCOR Purpose of th~_Re~olution The City of is a member of a 150-member city coalition known as the Oncor Cities Steering Committee (OSCS). The resolution approves the assessment of a ten cent ($0.10) per capita fee to fund the activities of the Steering Commitee. Whv this Resolution is Necessary The Steering Committee undertakes activities on behalf of municipalities for which it needs funding support from its members. Municipalities have original jurisdiction over the electric transmission and distribution rates and services within the city. The Steering Committee has been in existence since the late 1980s. It took on a formal structure in the early 1990s when cities served by TXU (since renamed as Oncor Electric Delivery Company, LLC) gave up their statutory right to rate case expense reimbursement in exchange for higher franchise fee payments. Empowered by city resolutions and funded by per capita assessments, the Steering Committee has been the primary public interest advocate before the Public Utility Commission, ERCOT, the Courts, and the Legislature on electric utility regulation matters for nearly two decades. The Steering Committee is actively involved in rate cases, appeals, rulemakings, and legislative efforts impacting the rates charged by Oncor Electric Delivery Company, LLC within the City. Steering Committee representation is also strong at ERCOT. It is possible that additional efforts will be necessary on new issues that arise during the year, and it is important that the Steering Committee be able to fund its participation on behalf of its member cities. A per capita assessment has historically been used, and is a fair method for the members to bear the burdens associated with the benefits received from that membership. Explanation of "Be I~ Resolved" Paragraphs 1. The City is currently a member of the Steering Committee; this paragraph authorizes the continuation of the City's membership. 2. This paragraph authorizes payment of the City's assessment to the Steering Committee in the amount of ten cents ($0.10) per capita. 3. This paragraph requires notification to the Chair of the Steering Committee, Jay Doegey, that the City has adopted the Resolution. Payment of Assessment A copy of the resolution should be mailed with payment of the fee to Jay Doegey, Chair, Steering Committee of Cities Served by Oncor, c/o City Attorney's Office, Mail Stop 63-0300, P. 0. Box 90231, Arlington, Texas 76004-3231. Checks should be made payable to: Steering Committee of Cities Served by Oncor. Oncor Cities Steering Committee c/o Jay Doegey, City Attorney Post Office Box 90231 MS # 63-0300 Arlington, TX 76004-3231 Bill To City of Richland Hills Invoice Date Invoice # 05/14/2012 12-117 Population Item Per capita Amount 7,801 2012 Assessment 0.10 780.10 TOta I $7so. l o Please make check payable to: Oncor Cities Steering Committee and mail to Oncor Cities Steering Committee, c/o Jay Doegey,Co-Chair, Arlington City Attorney's Office,PO Box 90231, Mail Stop 63-0300, Arlington, Texas 76004-3231 James Quin From: Kathy Nephew [Kathy.Nephew@arlingtontx.gov] Sent: Thursday, June 07, 2012 12:07 PM To: James Quin Subject: Invoice from Oncor Cities Steering Committee-2012 Assessment Attachments: 2012-05-24 Memo re Membership Assessment Invoice.DOC; 2012-05-24 Model Resolution 2012 Assessment.DOCX; 2012-05-24 Model Staff Report 2012 Assessment.DOC; List of OCSC Members for 2012 Assessment.DOC; Richland Hills.pdf From: Jay Doegey Chair, Oncor Cities Steering Committee In December, 2011, the Steering Committee approved the 2012 assessment for Steering Committee membership. We are anticipating a busy year for electric utility matters. Based upon the population-based assessment protocol previously adopted by the Steering Committee, the assessment for 2012 is a per capita fee of $0.10. The enclosed invoice represents your city's assessment amount. To assist you in the assessment process, we have attached several documents to this memorandum for your use: • Model resolution approving the 2012 assessment (optional, provided for those cities that have requested a resolution to authorize payment) • Model staff report supporting the resolution • List of Steering Committee members • Your assessment invoice A cover memo is attached that provides additional information. If you have any questions, please feel free to contact Jay Doegey (817/459-6878) or Thomas Brocato (tbrocato(a Iglawfirm.com, 512/322-5857). A copy of this Resolution and the assessment payment check made payable to "Steering Committee of Cities Served by Oncor" shall be sent to Jay Doegey, Chair, Steering Committee of Cities Served by Oncor, c/o City Attorney's Office, Mail Stop 63-0300, P. 0. Box 90231, Arlington, Texas 76004-3231. PRESENTED AND PASSED on this the 1 '1 day of ~-. 2. 2012, by a vote of ayes and ~ nays at a regular meeting of the City Council of the City of ~ 1 it sTexas. ATTEST: Signature City Secretary ~ ~~ ~~nnnniu„ ~~,~ ~~ Signature `,.~`~~~ "' ~~~''%,, Mayor . O I J' _~ ~= =v i ~= ~; APPROVED AS TO FORM: City Attorney 2