WS Item 5 (2)11:58 AM
Program for
Undergrounding
Power Lines
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Presentation Outline
Program Background
The Costs and Benefits of Undergrounding
Identifying Undergrounding Opportunities in Southlake
TXU’s Surcharge Program for Undergrounding
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Background
In January 2005, the Steering Committee of Cities Served by TXU Electric Delivery Company agreed to approve a program that permits cities to request undergrounding of utilities;
The cost of the project is recovered by TXU by placing a surcharge on customers within the city.
A separate monthly rider rate is charged to all customers based on a formula developed by TXU.
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The Costs and Benefits of Undergrounding
Costs
Expensive
10 times more expensive than overhead lines
Longer Duration of Power Outages
Shorter Life of Lines
Cable & telephone companies assume 100% of pole costs
Social equity issues
Benefits
Improved Aesthetics
Tree trimming eliminated
Lower Frequency of Power Outages
Increased Property Values
Reduced Operations & Maintenance Costs
Broader Economic Benefits
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TXU Undergrounding Process
Identify Undergrounding
Opportunities in Southlake
Major Arterials & Collectors
Public Parks
Schools
Retail Nodes
Synchronize with other Capital Improvement Projects
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TXU Undergrounding Process
Transmission Lines
Distribution Lines
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TXU Undergrounding Process
City requests an Initial Estimate for desired project(s)
Initial Estimate given to City within 60 days with the number of eligible accounts within City limits
City responds with desired Recovery Period and Cost Recovery Factor
Negotiations and agreement on Final Estimate, Final Cost Recovery Period, and Cost Recovery Factors
180 Day Process
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TXU Undergrounding Process Special Conditions
City must pay for Initial Estimate even if project does not move forward
City may perform their own Civil Engineering, but must be to Company specifications and reviewed by Company
City is responsible for securing easements and Right of Way
Company is not responsible for relocation of other utilities
TXU will not agree to place a surcharge on customers if the project:
Greater than $20 million; or
$10 times the number of retail customers located in the corporate limits
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Calculating Cost
UFCRFn = (FEPCn/RPn)/CYPn
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Next Steps
Consider Program Viability
Identify Project Opportunities
City Council to Select Project
Questions?