Item 4DMEMORANDUM
April 30, 2008
TO: Shana Yelverton, City Manager
FROM: Sharen Jackson, Director of Finance
SUBJECT: Resolution No. 08 -016, Authorize continued participation with the Steering
Committee of Cities served by Oncor and authorize the payment of 10
cents per capita to the Steering Committee to fund regulatory and related
activities related to Oncor Electric Delivery.
Action Requested: City Council approval of Resolution 08 -016.
Background The City of Southlake is a member of a 109 — member city coalition
known as the Steering Committee of Cities Served by Oncor. The
resolution approves the assessment of a ten cent ($.10) per capita fee to
fund the activities of the Steering Committee.
Steering Committee undertakes activities on behalf of municipalities for
which it needs funding 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) 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, the Courts, and the Legislature on
electric utility regulation matters for nearly two decades.
In 2004, the Steering Committee coordinated the activities of 20 member
cities that initiated an investigation of Oncor's wires rates. As a result of
the Steering Committee's activities, the Company agreed to make
settlement payments to the cities beginning in 2005. Settlement
payments from Oncor will continue to be made annually through the
entry of final order in the Company's next rate case (expected 2009).
The Steering Committee is actively involved in rate cases, appeals,
rulemakings, and legislative efforts impacting the rates charged by Oncor
Electric Delivery within the City. 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 the membership.
Financial
Considerations: $2,570 (2008 assessment 25,700 population @ $.10)
Citizen Input/
Board Review: None required
Legal Review: None required
Alternatives: Approve or deny
Supporting
Documents: Resolution 08 -016
Staff
Recommendation: Approval of Resolution 08 -016
RESOLUTION NO.
A RESOLUTION AUTHORIZING CONTINUED
PARTICIPATION WITH THE STEERING COMMIT'T'EE
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
WHEREAS, the City of 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 (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
TEXAS:
I.
That the City is authorized to continue its membership with the Steering
� inmittee of Cities Served by Oncor to protect the interests of the City of
� �+�-e, [ f) 5 and protect the interests of the customers of Oncor Electric
Delivery residing and conducting business within the City limits.
II.
It is further authorized to pay its assessment to the Steering Conunittee ten cents
($0.10) per capita based on the population figures for, the City shown in the latest TML
Directory of City Officials.
III.
A copy of this Resolution and the assessment payment check (made payable to
"Oncor Cities Steering Committee" shall be sent to Jay Doegey, Chair, Oncor Cities
Steering Committee, c/o City Attorney's Office, Mail Stop 63 -0300, PO Sox 90231,
Arlington, Texas 76004 -3231.
PRESENTED AND PASSED on this the day of , 2008, by a
vote of ayes and nays at a regular meeting of the City Council of the City
of , Texas.
ATTEST:
Signature
City Secretary
Signature
Mayor
APPROVED AS TO FORM:
City Attorney
Im
(2)