HomeMy WebLinkAboutResolution 2006-018
RESOLUTION NO. 2006-018
WHEREAS, the City of North Richland Hills, Texas (City) is a member of
the Steering Committee of Cities served by TXU (Steering Committee); and
WHEREAS, Electric Delivery and the Steering Committee engaged in
settlement discussions regarding abatement of any full-scale rate investigation
and interim relief that may be available to Cities leading to a settlement in
February 2005 that made Steering Committee members whole for their alleged
excess costs associated with street lighting and water pumping in exchange for
delay in Show-Cause filing requirements; and
WHEREAS, Electric Delivery has desired to further extend for two years
the currently scheduled June 2006 rate case filing in exchange for extension of
payments to Cities under the February 2005 Agreement and other benefits to
Cities; and
WHEREAS, the Steering Committee and Electric Delivery have reached a
Settlement Agreement that extends the previously negotiated settlement terms
by two years and adds benefits to Cities, including reimbursement for
participation in ERCOT and market development activities and $18 million in
funds for beneficial public use as may be determined in the discretion of Steering
Committee member cities and which may include, but which is not limited to,
energy education for citizens, reductions in rates for city services, investments in
community facilities, and investment in energy efficiency measures; and
WHEREAS, current electric market constraints make it impractical to pass
the potential benefits of rate reductions on to residential ratepayers, because
most consumers remain on price to beat rates which are fixed by statute and
rule, and the minority of consumers who have switched to service from a
competitive retail electric supplier may only realize rate reduction benefits if their
retail electric provider (REP) contract requires a pass-through of such rate
reduction; and
WHEREAS, the Steering Committee and Electric Delivery have reached a
separate agreement wherein the Company will increase franchise fee factors
over a four-year period producing increased revenues for each member city; and
WHEREAS, Electric Delivery has committed to the Steering Committee
during the period of rate case abatement to share information on certain
company operations and procedures that should enhance the Cities' ability to
appropriately exercise regulatory responsibilities in the rate proceeding that
Electric Delivery has agreed to file on or before July 1 2008;
WHEREAS, the Settlement Agreement calls for immediate and long-term
benefits to flow to all city members of the Steering Committee which in turn have
indirect but positive benefit to all city residents and public safety in general; and
WHEREAS, the Steering Committee values the benefits of settlement to
Cities at approximately $85 million between 2005 and 2009 and comparable
value is unlikely to be achieved through litigation.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF NORTH RICHLAND HILLS, TEXAS, that:
1. The Extension and Modification of Settlement Agreement and
Agreement To Resolve Outstanding Franchise Issues, both dated January 27,
2006, between the Cities' Steering Committee and TXU Electric Delivery are
hereby approved.
PASSED this the 27th day of March, 2006 by the City f North Richland
Hills, Texas.
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Patricia Hutson, City Secretary
APPROVED AS TO CONTENT:
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Karen Bostic, Managing Director
Resolution No. 2006-018
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