HomeMy WebLinkAboutResolution - 2023-R0113 - Provider of Last Resort Agreement, LP&L and Reliant Energy Retail ServicesResolution No. 2023-R0113
Item No. 6.7
February 28, 2023
RESOLUTION
WHEREAS, Lubbock Power & Light is the municipally owned electric utility
of the City of Lubbock ("LP&L");
WHEREAS, on February 15, 2022, by Resolution No. 2022-R0010, the
Electric Utility Board of the City of Lubbock passed an irrevocable resolution pursuant
to Texas Utilities Code, Chapter 40, to opt into retail competition, subject to certain
conditions;
WHEREAS, on February 22, 2022, by Resolution No. 2022-RO108, the City
Council of the City of Lubbock passed an irrevocable resolution pursuant to Texas
Utilities Code, Chapter 40, to opt into retail competition, subject to certain conditions;
WHEREAS, one of the conditions of the aforementioned resolutions was that
the "Electric Utility Board and the City Council of the City of Lubbock have established
the procedures and criteria, if desired, for selecting the Provider of Last Resort
("POLR") for customers within LP&L's certificated service area as of the date of the
initiation of customer choice, and have ultimately designated another entity that will
serve as the POLR pursuant to Texas Utilities Code § 40.053."
WHEREAS, by Resolution No. 2022-RO408 and Resolution No. EUB 2022-
R0083, the City Council of the City of Lubbock, and the Electric Utility Board of the
City of Lubbock, respectively, established the procedures and criteria for designating
the Provider of Last Resort;
WHEREAS, following such procedures and criteria, LP&L staff has made
recommendations to the Electric Utility Board for the designation of the Provider of
Last Resort, and so recommends Reliant Energy Retail Services, LLC to serve as the
Provider of Last Resort for LP&L customers within LP&L's service territory as of the
date of the initiation of customer choice;
I WHEREAS, by resolution dated February 21, 2023, the Electric Utility Board
approved of such recommendation;
WHEREAS, Reliant Energy Retail Services, LLC, has so agreed to serve as
the Provider of Last Resort for customers within LP&L's service territory as of the date
of the initiation of customer choice; and
WHEREAS, LP&L has considered the proposal submitted by Reliant Energy
Retail Services, LLC to serve as the Provider of Last Resort for LP&L customers within
LP&L's service territory as of the date of the initiation of customer choice; NOW
THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Council of the City of Lubbock hereby designates Reliant
Energy Retail Services, LLC to serve as the Provider of Last Resort for Lubbock Power
& Light customers within Lubbock Power & Light's certificated area as of the date of
the initiation of customer choice.
BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
THAT the Director of Electric Utilities is hereby authorized and directed to
execute that certain Initial Designation of and Agreement with Provider of Last Resort,
by and between the City of Lubbock, acting by and through Lubbock Power & Light,
and Reliant Energy Retail Services, LLC, as attached to this resolution and any
I documents related thereto.
Passed by the City Council this 28th day of February, 2023.
APPROVED AS TO CONTENT:
APPROVED AS TO FORM:
Je S th LP&L General Counsel
RESOLUTION
WHEREAS, Lubbock Power & Light is the municipally owned electric utility
of the City of Lubbock ("LP&L");
WHEREAS, on February 15, 2022, by Resolution No. 2022-R0010, the
Electric Utility Board of the City of Lubbock passed an irrevocable resolution pursuant
to Texas Utilities Code, Chapter 40, to opt into retail competition, subject to certain
conditions;
WHEREAS, on February 22, 2022, by Resolution No. 2022-RO108, the City
Council of the City of Lubbock passed an irrevocable resolution pursuant to Texas
Utilities Code, Chapter 40, to opt into retail competition, subject to certain conditions;
WHEREAS, one of the conditions of the aforementioned resolutions was that
the "Electric Utility Board and the City Council of the City of Lubbock have established
the procedures and criteria, if desired, for selecting the Provider of Last Resort
("POLR") for customers within LP&L's certificated service area as of the date of the
initiation of customer choice, and have ultimately designated another entity that will
serve as the POLR pursuant to Texas Utilities Code § 40.053."
WHEREAS, by Resolution No. 2022-RO408 and Resolution No. EUB 2022-
R0083, the City Council of the City of Lubbock, and the Electric Utility Board of the
City of Lubbock, respectively, established the procedures and criteria for designating
the Provider of Last Resort;
WHEREAS, following such procedures and criteria, LP&L staff has made
recommendations to the Electric Utility Board for the designation of the Provider of
Last Resort, and so recommends Reliant Energy Retail Services, LLC to serve as the
Provider of Last Resort for LP&L customers within LP&L's service territory as of the
date of the initiation of customer choice;
WHEREAS, Reliant Energy Retail Services, LLC, has so agreed to serve as
the Provider of Last Resort for customers within LP&L's service territory as of the date
of the initiation of customer choice; and
WHEREAS, LP&L has considered the proposal submitted by Reliant Energy
Retail Services, LLC to serve as the Provider of Last Resort for LP&L customers within
LP&L's service territory as of the date of the initiation of customer choice; NOW
THEREFORE:
BE IT RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE CITY OF
LUBBOCK:
THAT the Electric Utility Board hereby designates Reliant Energy Retail
LLC to serve as the Provider of Last Resort for Lubbock Power & Light
s within Lubbock Power & Light's certificated area as of the date of the
of customer choice.
IT FURTHER RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE
Y OF LUBBOCK:
THAT the Director of Electric Utilities is hereby authorized and directed to
execute that certain Initial Designation of and Agreement with Provider of Last Resort,
by and between the City of Lubbock, acting by and through Lubbock Power & Light,
and Reliant Energy Retail Services, LLC, as attached to this resolution and any
documents related thereto.
BE IT FURTHER RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE
CITY OF LUBBOCK:
THAT this Resolution shall be null and void if the City Council shall not
likewise approve and authorize the attached designations within sixty (60) days of the
date hereof.
Passed by the Electric Utility Board this 21st day of February, 2023.
7�"afford, Chairm
ATTEST:
y
die Schultz, Board Secretary
APPROVED AS TO CONTENT:
Joel I , Director ectri tilities
APPROVED AS TO FORM:
4ejqe:Si(a!i� LP&L General Counsel
Resolution No. 2023-RO113
LP&L Initial Designation of and Agreement with Provider of Last Resort
LP&L's Initial Designation of and Agreement with Provider of Last Resort is entered into
and effective this 28th day of February, 2023, by and between the City of Lubbock, Texas, acting
by and through Lubbock Power & Light ("LP&L") and Reliant Energy Retail Services, LLC.
WITNESSETH
WHEREAS, on February 15, 2022, by Resolution No. 2022-R0010, the Electric Utility
Board of the City of Lubbock passed an irrevocable resolution pursuant to Texas Utilities Code,
Chapter 40, to opt into retail competition, subject to certain conditions;
WHEREAS, on February 22, 2022, by Resolution No. 2022-R0108, the City Council of
the City of Lubbock passed an irrevocable resolution pursuant to Texas Utilities Code, Chapter
40, to opt into retail competition, subject to certain conditions;
WHEREAS, one of the conditions of the aforementioned resolutions required the Electric
Utility Board and the City Council of the City of Lubbock to establish the procedures and criteria,
if desired, for selecting the Provider of Last Resort ("POLR") for customers within LP&L's
certificated service area as of the date of the initiation of customer choice and to designate an entity
(other than LP&L) to serve as the POLR pursuant to Texas Utilities Code § 40.053;
WHEREAS, by Resolution No. 2022-R0408 and Resolution No. EUB 2022-R0083, the
City Council of the City of Lubbock, and the Electric Utility Board of the City of Lubbock,
respectively, established the procedures and criteria for designating the POLR;
WHEREAS, following such procedures and criteria, LP&L staff has made
recommendations to the Electric Utility Board for designation of the POLR and recommends that
Initial Designation of and Agreement with Provider of Last Resort
Reliant Energy Retail Services, LLC be designated to serve as the POLR for customers within
LP&L's service territory as of the date of the initiation of customer choice;
WHEREAS, Reliant Energy Retail Services, LLC, has agreed to serve as the POLR for
customers within LP&L's service territory as of the date of the initiation of customer choice;
NOW, THEREFORE, having considered the recommendations of LP&L Staff and the
proposal for POLR designation as submitted, LP&L hereby selects and designates Reliant Energy
Retail Services, LLC to serve as the POLR for customers within LP&L's service territory as of the
date of the initiation of customer choice.
In consideration for its designation as POLR, Reliant Energy Retail Services, LLC
("Reliant") hereby agrees as follows:
1. Reliant agrees to serve as the POLR for all retail customer classes served by LP&L within
LP&L's certificated service area beginning on the date of initiation of customer choice.
Reliant and LP&L agree that date is anticipated to be October 1, 2023, but the parties agree
that LP&L shall provide Reliant thirty days' notice prior to the initiation of customer
choice, once the date is established by the City Council and the Electric Utility Board of
the City of Lubbock.
2. Reliant agrees that, in its role as POLR, it will provide LP&L customers with the approved,
applicable POLR rates established by the Public Utility Commission of Texas pursuant to
16 Texas Administrative Code § 25.43. Reliant shall use the approved, applicable rates for
the Transmission and Distribution Utility ("TDU") Service Area nearest to Lubbock where
Reliant is providing POLR service, as they may be amended from time to time.
3. Reliant agrees that it will serve as the POLR for a term beginning on the initiation of
customer choice in LP&L's certificated area and continuing until LP&L provides
Initial Designation of and Agreement with Provider of Last Resort
notification that such designation is being terminated. LP&L, pursuant to Texas Utilities
Code Chapter 40, reserves the right to terminate this designation at any time at its sole
discretion. Except as provided in paragraph 7, below, LP&L agrees that it will provide at
least ninety (90) days' notice of termination of this designation. Should LP&L have the
option to delegate the jurisdictional authority of the POLR assignment for LP&L's service
area to the Public Utility Commission of Texas ("PUCT") and make such a delegation,
Reliant shall thereafter follow the applicable rules and procedures as set forth by the PUCT.
4. If, during the term of this agreement, Reliant is unwilling or unable to continue providing
POLR service in the LP&L certificated area, Reliant shall provide a minimum of 180 days'
notice to LP&L of termination of this agreement.
5. Reliant agrees that, prior to providing service in LP&L's certificated area, and as a
condition to this designation, Reliant will execute Appendix A to the Tariff for Competitive
Retailer Access applicable to Municipally Owned Utilities.
6. Reliant agrees that it will follow all rules of the PUCT for operation in LP&L's service
territory, including all applicable customer protection rules, as they may be amended from
time to time.
7. Under Texas Utilities Code § 40.053(e), should LP&L find that Reliant has failed to meet
its obligations described herein, LP&L shall have the right to revoke the designation and
designate a new POLR based on the original or updated selection criteria.
IN WITNESS WHEREOF, the parties accept and agree to this binding designation by their
duly authorized representatives effective as of the date first written above.
City of Lubbock, acting by and through
Lubbock Power & Light
Initial Designation of and Agreement with Provider of Last Resort
/ '/ Z///,40
Joel 12, Director of Electric ities
APPROVED AS TO CONTENT:
Joel , Direc r of ec 'c Utilities
APPROVED AS TO FORM:
Je Tj S it LP&L General Counsel
Reliant Energy Retaai�illlS``e--rvices, LLC
By: �'�'�'S�+
Name: Elizabeth Killinger
Title: President
Initial Designation of and Agreement with Provider of Last Resort