ORD 1993-04AAN ORDINANCE AMENDING THE EXISTING FRANCHISE BETWEEN THE CITY AND
TEXAS UTILITIES ELECTRIC COMPANY TO PROVIDE FOR A DIFFERENT
CONSIDERATION; PROVIDING AN EFFECTIVE DATE; PROVIDING FOR
ACCEPTANCE BY TEXAS UTILITIES ELECTRIC COMPANY; FINDING AND
DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS
OPEN TO THE PUBLIC AS REQUIRED BY LAW.
WHEREAS, Texas Utilities Electric Company (hereinafter called
"TU Electric") is engaged in the business of providing electric
utility service within the City and is using the public streets,
alleys, grounds and rights -of -ways within the City for that purpose
under the terms of a franchise ordinance heretofore duly passed by
the governing body of the City and duly accepted by TU Electric;
and
WHEREAS, TU Electric has, pursuant to said franchise
ordinance, been paying to the City a sum equal to three percent
(3.) of its gross receipts from the retail sale of electric power
and energy within the City for the rights and privileges set forth
in said franchise ordinance and, in addition thereto, has
reimbursed the City for its ratemaking expenses pursuant to Section
24 of the Public Utility Regulatory Act; and
WHEREAS, the City and TU Electric desire to amend said
franchise ordinance to provide for a different consideration to
consist of a sum equal to four percent (4°-,) of its gross receipts
from the retail sale of electric power and energy within the City,
which different consideration includes, among other things, TU
Electric's obligation to reimburse the City for its ratemaking and
other regulatory expenses to be incurred by the City involving the
regulation of TU Electric;
Now, Therefore,
BE IT ORDAINED BY THE CITY
TROPHY CLUB
COUNCIL
TEXAS:
OF THE CITY OF
SECTION 1. The consideration payable by TU Electric for the
rights and privileges granted to TU Electric by the franchise
ordinance heretofore duly passed by the governing body of this City
and duly accepted by TU Electric is hereby changed to be four
percent (40) of its gross receipts from the retail sale of electric
power and energy within the corporate limits of the City, said
changed percentage to be applied to said gross receipts beginning
on June 1, 1993, and being payable as specified in said franchise
ordinance and based upon the same time periods as specified in said
franchise ordinance and being payment for the said rights and
privileges during the period specified in said franchise ordinance,
said payment being in lieu of and shall be accepted as payment for
all of TU Electric's obligations to pay municipal charges, fees,
rentals, pole rentals, wire taxes, inspection fees, easement taxes,
franchise taxes, certain regulatory expenses under Section 24 of
the Public Utility Regulatory Act or any similar or successor law,
or other charges and taxes of every kind, except ad valorem taxes,
sales and use taxes, and special taxes and assessments for public
improvements.
SECTION 2. TU Electric shall make a one-time payment hereunder
for the purpose of making the changed consideration as specified in
Section 1 hereof effective on June 1, 1993, without altering the
payment dates specified in said franchise ordinance heretofore duly
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passed by the governing body of this City and duly accepted by TU
Electric, said one-time payment being due and payable thirty (30)
days after TU Electric`s acceptance of this ordinance as provided
in Section 6 hereof, and being a sum calculated as follows: (a) TU
Electric shall determine the monthly average of its gross receipts
from the retail sale of electric power and energy within the City
during the period upon which the most recent franchise payment made
to the City prior to June 1, 1993, was based; (b) the said monthly
average of its said gross receipts shall be multiplied by 1%
(0.01); and (c) the product so calculated shall be multiplied by
the number of whole months from June 1, 1993, through the last day
of the last month of the period for which the most recent franchise
payment made to the City prior to June 1, 1993, was made.
SECTION 3. Notwithstanding anything to the contrary in Section
1 hereof, if TU Electric files general rate cases and the City
incurs cumulative expenses, otherwise reimbursable by TU Electric
under Section 24 of the Public Utility Regulatory Act or similar or
successor law, in excess of $4 million, then in such event, TU
Electric shall reimburse all of the expenses incurred by the City
in connection with all general rate cases filed during the period
ended fifteen (15) years from the effective date hereof in excess
of said $4 million. The term "general rate case" as used in this
Section means a rate case initiated by TU Electric in which it
seeks to increase its rates charged to a substantial number of its
customer classes in the City and elsewhere in its system and in
which TU Electric's overall revenues are determined in setting such
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rates. City agrees to exercise reasonable best efforts,
considering the facts and circumstances, to keep its expenses on
average to under $1,000,000 per general rate case.
SECTION 4. Notwithstanding the provisions of Section 1 hereof,
TU Electric will continue to reimburse the City's ratemaking
expenses, if any, in connection with the appeal and any remand of
Public Utility Commission of Texas Docket No. 9300 that are
otherwise reimbursable under Section 24 of the Public Utility
Regulatory Act, and will continue to reimburse the City's
ratemaking expenses, if any, in connection with Public Utility
Commission of Texas Docket No. 11735 that are otherwise
reimbursable under Section 24 of the Public Utility Regulatory Act
to the extent that said ratemaking expenses are incurred through
the entry of the last action by the Public Utility Commission of
Texas (i.e., the said Commission's order overruling the last motion
for rehearing) in said Docket No. 11735; the City hereby agrees
that any ratemaking expenses incurred in connection with said
Docket No. 11735 that the City incurs on appeal of said order will
be the City's sole responsibility and further agrees --- in the
events that the City is a participant in the joint intervention of
cities managed by the Steering Committee of TU Electric Service
Area Cities intervening in Docket No. 11735, that the City decides
to continue to participate with the Steering Committee in such
appeal of said order, and TU Electric is required to reimburse said
Steering Committee for ratemaking expenses under Section 24 of the
Public Utility Regulatory Act that are incurred on appeal of said
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order in Docket No. 11.735 -- to reimburse TU Electric the City`s
share of reimbursable expenses related to said appeal and owed by
TU Electric to said steering Committee determined by the
methodology chosen by the said Steering Committee (the City to
notify TU Electric of the method so chosen by the Steering
Committee prior to the submission of an invoice by the Steering
Committee for the payment by TU Electric of said reimbursable
expenses related to said appeal).
SECTION 5. In all respects, except as specifically and
expressly amended by this ordinance, the said franchise ordinance
heretofore duly passed by the governing body of this City and duly
accepted by TU Electric shall remain in full force and effect
according to its terms until said franchise ordinance terminates as
provided therein.
SECTION 6. This ordinance shall take effect from and after its
final passage and TU Electric's acceptance. TU Electric shall,
within fifteen (15) days from the passage of this ordinance, file
its written acceptance of this ordinance with the Office of the
City Secretary in substantially the following form:
To the Honorable Mayor and City Council:
Texas Utilities Electric Company (TU Electric),
acting by and through the undersigned authorized officer,
hereby accepts, on this the JjtL day of ,7111 )L , 1993,
Ordinance No. g5_ngA amending the current franchise
between the City and TU Electric.
TEXAS UTILITIES ELECTRIC COMPANY
By
Senior Vive I Pre dent
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SECTION 7. It is hereby officially found and determined that
the meeting at which this ordinance is passed is opeii to the public
as required by law and that public notice of the time, place and
purpose of said meeting was given as required.
PASSED AND APPROVED BY THE CITY rnrjnrrTTs_ OF THE CITY OF
TROPHY CLUB , TEXAS, this the 20th day of
_ STUTly , 1993.
Mayor
ATTEST:
City Secretary
TO FORM:
qiA torney
�._
WaRi
July 29, 1993
WELECTRIC
Terry R. GrJMn
5r, Vice President
TO THE MAYOR AND CITY COUNCIL
OF THE CITY OF TROPHY CLUB, TEXAS:
The undersigned hereby accepts the terms of that certain franchise passed and adopted
by the City Council of the City of Trophy Club, Texas, by ordinance duly approved by the
Mayor and attested by the City Secretary on July 20, 1993, same being, "AN ORDINANCE
AMENDING THE EXISTING FRANCHISE BETWEEN THE CITY AND TEXAS UTILITIES
ELECTRIC COMPANY TO PROVIDE FOR A DIFFERENT CONSIDERATION;
PROVIDING AN EFFECTIVE DATE; PROVIDING FOR ACCEPTANCE BY TEXAS
UTILITIES ELECTRIC COMPANY; FINDING AND DETERMINING THAT THE
MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS
REQUIRED BY LAW . "
IN TESTIMONY WHEREOF, witness the corporate signature of Texas Utilities Electric
Company by its duly authorized officer, this the 29th day of July, 1993.
TEXAS UTILITIES ELECTRIC COMPANY
Terry R.
Sr. Vice President
Original acceptance of franchise, of which the foregoing is a true copy, was filed in my office
on the 5th_ day of Augl St , 1993, at z : oo'clock _p_.m.
(CITY SEAL)
City Secretary
City of Trophy Club, Texas
15D6 Commerce Street Dallas, Texas 752D1 (214) 648-3650