O-2008-12-01ORDINANCE NO. 2008-12-01
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, RELATING TO ELECTRIC FRANCHISE FEE PAYMENTS AS
CALCULATED AND PAID UNDER TEXAS UTILITY CODE § 33.008 FOR
EXISTING FRANCHISEES OPTING INTO ELECTRIC DEREGULATION;
CONTAINING FINDINGS AND OTHER PROVISIONS RELATING TO THE
FOREGOING SUBJECT; PROVIDING FOR A SEVERABILITY CLAUSE;
PROVIDING FOR A REPEALING CLAUSE; PROVIDING FOR A PENALTY OF
FINE NOT TO EXCEED THE SUM OF FIVE HUNDRED DOLLARS ($500) FOR
EACH OFFENSE; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Allen, Collin County, Texas ("City') on or about July 27,1953, by Ordinance
entered in a franchise ("Franchise") with Texas Power and Light, now TXU Electric, which granted the right
to use the public rights-of-way to deliver electricity within the City; and,
WHEREAS, Section 5 of the Franchise as amended provides that the City may collect a franchise fee from
the electric utility for use of the public rights-of-way in the City and the City has collected such fee since the
Franchise was granted; and,
WHEREAS, Texas Utility Code § 33.008(a) provides that, a municipality may impose on an electric
utility, transmission and distribution utility or electric cooperative that provides distribution service within the
municipality a reasonable charge as specified in Texas Utility Code §33.008(b) for the use of a municipal
' street, alley, or public way to provide distribution service; and,
WHEREAS, Texas Utility Code § 33.008(b) provides in part that a municipality that collected a charge or
fee for a franchise to use a municipal street, alley, or public way before ... [December 31, 2001], the
municipality, after [December 31, 2001] ... is entitled to collect from each electric utility, transmission and
distribution utility or electric cooperative ... that uses the municipality's streets, alleys, or public ways to
provide distribution service a charge based on each kilowatt hour of electricity delivered by the electric utility
to each retail customer whose consuming facility's point of delivery is located within the municipality's
boundaries; and,
WHEREAS, Texas Utility Code § 33.008(b) further provides that the charge imposed shall be equal to the
total electric franchise fee revenue due the municipality from electric utilities or electric cooperatives, as
appropriate for calendar year 1998 divided by the total kilowatt hours delivered during 1998 by the applicable
electric utility or electric cooperatives, as appropriate, to retail customers whose consuming facilities' points
of delivery were located within the municipality's boundaries ("KWH Charge"); and,
WHEREAS, Texas Utility Code § 33.008(b) further provides that the compensation a municipality may
collect from each electric utility, transmission and distribution utility, or electric woperative providing
distribution service shall be equal to the charge per kilowatt hour determined for 1998 multiplied times the
number of kilowatt hours delivered within the municipality's boundaries; and,
WHEREAS, the City Council finds and determines that the City did collect a franchise fee from TXU
Electric before December 31, 2001 and desires to impose and collect the charge authorized of Texas Utility
' Code § 33.008(b) from the electric utility or transmission and distribution utility in the City.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS, THAT:
SECTION 1. The findings contained in the preamble of this ordinance are determined to be true and correct
and are hereby adopted.
' SECTION 2. Pursuant to Texas Utility Code § 33.008(a) and § 33.008(b), the City imposes on each electric
utility, transmission and distribution utility, or electric cooperative, as applicable that provides distribution
service within the municipalities' boundaries, a KWH charge as authorized by Texas Utility Code § 33.008.
Such charge shall be paid annually as is provided for in such utility franchise. Following the date any electric
cooperative bas implemented customer choice, such KWH charge shall also be applied to such electric
cooperative.
SECTION 3. Concurrent with the payment of the per kilowatt how charge, as authorized by Texas Utility
Code, § 33.008, the electric utility, transmission and distribution utility or electric cooperative, as applicable,
shall also file a report with the City evidencing the kilowatt hours delivered within the City during the
applicable period, and other reasonable information as requested in writing by the City to verify the accuracy
of such report.
SECTION 4. It shall be unlawful for any Franchisee or person to knowingly make a material
misrepresentation of any information required to be reported under this ordinance or pursuant to Texas Utility
Code § 33.008(e).
SECTION 5. Should any word, sentence, paragraph, subdivision, clause, phrase or section of this
ordinance, be adjudged or held to be void or unconstitutional, the same shall not affect the validity of the
remaining portions of said ordinance, which shall remain in full force and effect. Except as otherwise
provided herein, this ordinance does not affect a provision of any Franchise Agreement or ordinance now in
effect.
SECTION 6. Any person, finn or corporation violating any of the provisions or terms of this ordinance shall
be subject to the same penalty as provided for in Code of Ordinances of the City of Allen, as previously amended,
and upon conviction shall be punished by a fine not to exceed the sum of Five Hundred Dollars ($500) for each
offense, and each and every day such violation shall continue shall be deemed to constitute a separate offense.
SECTION 7. This ordinance shall take effect immediately from and after its passage and it is accordingly
so ordained beginning on January 1, 2002.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ON THIS THE 6'r' DAY OF DECEMBER, 2001.
APPROVED:
Stephen terrell, MAYOR
APPROVED AS TO FORM: ATTEST:
' Peter G. Smith, CITY
Ordinance No. 2008-12-01, Page 2
SECRETARY