R-2388-3-05RESOLUTION NO. 2388-3-05(R)
' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, RATIFYING SETTLEMENT WITH TXU ELECTRIC
DELIVERY; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Allen, Texas, is a member of the Steering Committee of Cities served by TXU
(Steering Committee); and,
WHEREAS, the Steering Committee did encourage certain member cities to initiate show cause rate
proceedings against TXU; and,
WHEREAS, Electric Delivery and the Steering Committee engaged in settlement discussions regarding
abatement of any full-scale rate investigation and interim relief that may be available to Cities; and,
WHEREAS, it remains impractical, if not impossible, to deliver rate relief to the vast majority of residential
customers until the expiration of price to beat (PTB) on January 1, 2007; and,
WHEREAS, the unfair and adverse impacts of street lighting and water pumping tariffs that Cities have
experienced since the implementation of retail deregulation on January 1, 2002, can be addressed on an
interim basis pending a final order in a future rate case through a financial distribution from the Steering
Committee of funds received from Electric Delivery as part of a Settlement; and,
WHEREAS, the coupling of interim relief with the Steering Committee's recognition that resources should
' be devoted to the 2005 Legislative Session to promote overall enhancements in electric retail competition for
the benefit of all end-users; and,
WHEREAS, the Steering Committee and Electric Delivery have entered into a Settlement Agreement
pending approval by the 20 Cities that passed show -cause resolutions and ratification by other member cities
with original jurisdiction; and,
WHEREAS, Electric Delivery has agreed to improve communication, coordination and timing of
construction in rights-of-way, permit development of a tariff that will allow city mandated underground
placement of distribution facilities, modify certain franchise renewal negotiation positions and improve meter
reading on certain city accounts that are estimated; and,
WHEREAS, Electric Delivery has committed to the Steering Committee during the period of rate case
abatement to share information on certain company operations and procedures that should enhance the Cities'
ability to appropriately exercise regulatory responsibilities in the rate proceeding that Electric Delivery has
agreed to file on or before July 1, 2006; and,
WHEREAS, that Agreement calls for immediate and long-term benefits to flow to all city members of the
Steering Committee which in tum have indirect but positive benefit to all city residents and public safety in
general.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS, THAT:
' SECTION 1. The Settlement Agreement between the Cities' Steering Committee and TXU Electric
Delivery is hereby ratified.
SECTION 2. This Resolution shall become effective immediately from and after its passage.
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DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ON THIS THE 22"o DAY OF MARCH, 2005.
APPROVED:
Stephen errell, MAYOR
ATTEST:
Shelley a C, CITY S CRETARY
Resolution No. 2388-32388-3-05(R), Page 2