WS Item 5 (4)1:58 PM
Undergrounding
Of Power Lines
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Presentation Outline
The Costs and Benefits of Undergrounding
Funding Sources
Legal Opinion
Next Steps?
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The Costs and Benefits of Undergrounding
Costs
Financial
10 times more expensive than overhead lines (Can be greater if directional boring is required)
Longer Duration of Power Outages
Must underground other utilities (i.e. telephone & cable)
Benefits
Improved Aesthetics
Tree trimming eliminated
Lower Frequency of Power Outages
Increased Property Values
Reduced Operations & Maintenance Costs
Source:
Johnson, Bradley W., Out of Sight, Out of Mind?: A Study on the Costs and Benefits of Undergrounding Overhead Power Lines, Edison Electric Institute, Washington, DC. (July 2006)
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Question for the Attorney
Can the City require new development to place existing utility lines underground?
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POSSIBLE FUNDING OPTIONS
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Require the Developer to Underground the Existing Utilities
Frisco requires that new development in the Tollway Overlay District Underground Existing Utilities
“All new utilities shall be buried underground as specified in the Subdivision Regulation Ordinance”
“Existing utilities shall be relocated underground upon development as specified in the Subdivision Regulation Ordinance…”
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Fund the undergrounding of utilities through a developers agreement, 380 agreement, or General Fund.
Developers Agreement/380 Agreement/General Fund
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TXU Surcharge Program
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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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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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Possible Next Steps
Ordinance Amendment
Consider TXU Program Viability
Identify Project Opportunities
Questions?