HomeMy WebLinkAboutResolution - 507 - Grant Application - PURA - Compliance Assistance, LP&L - 05/22/1980r '
DWR: c RESOLUTION #507 5/22r80
�C RESOLUTION
14
�BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock an application
for financial assistance under the PURPA (Public Utility Regulatory Policies
Act, Pub. L. 95-617, 92 Stat. 3117 et seq.) Grant Program in order to carry
out duties and responsibilities under that act, attached herewith which shall
be spread upon the minutes of the Council and as spread upon the minutes of
this Council shall constitute and be a part of this Resolution as if fully
copied herein in detail.
Passed by the City Council this 22nd day of May , 1980.
T1TL McAL STER, MAYOR-
-ATTEST:
AYOR-ATTEST:
�'EvelyrrGaffga, try=Se e ry reasurer
APPROVED:..AS TO CONTENT:
Carroll McDonald, ',Director
Electric Sales & Service
APPROVED AS TO FORM:
Dav Reagan, Assistint kilty Attorney
1
FISCAL NOTE ,
1. 'State as clearly as possible the goals and objectives of the proposed
project. LP&L must comply with the Public Utility Regulatory Policies
Act of 1978. This request is for financial assistance to aid in com—
pliance, in the form of a joint application with the cities of Garland
and Austin for funds•from the PURPA Grant Program. The PURPA Act says
LP&L and other covered nonregulated utilities along with State utility
commissions must consider twelve rate and service standards by holding
public hearings to consider the standards. This grant money would go
toward a cost service study by classes of consumerst which is necessary
to comply with the act.
2. State indicators of goals and objectives expected to be achieved from
the proposed project. The cost of service standard of..PURPA states that
rates to each class of consumers shall be designed to the maximum extent
possible to reflect the costs of providing service to that class. It is
necessary to reflect costs of serving different consumption patterns
within each classy daily kilowatt demand curves for all classese and
annual capital, operating and maintenance costs for transmission, distri—
bution and generation facilities by classes.
3, ghat specific accomplishments can be expected from thq proposed project?
• A cost of service study.
4. V.hat groups.wifl be affected by the proposed project?
All electric ratepayers could benefit -from the study in the design of
fair and equitable electric rates.
�. /
S. Are there other organizations in the city that provide the services
stated - in project? No.
6. What other alternative sources for providing the service were considered
but not chosen? Staff preparation of the study was considered but -it --was
decided that the cost of service study was only one part of the PURPA Act
which•wiLL require a great deal of extra workload for the staff. It is not
felt that staff can adequately -perform the study becasue of a Lack of
adequate time and a Lack of background.
7_ What projects or programs would be postponed or eliminated in order to
implement the proposed project within existing revenue sources?
None.
8. Other comments.
1
EXPENDITURES AND REVENUE PROJECTION
1980-81 19 19• 19. 19
Expenditures
Personnel
Supplies
iiaintenance .
Other Charges
(Professional Services) 25.000
Capital
TOTAL 25:000
Sources of Funds
Federal
State'
Local
Other
TOTAL
1980-81
25.000
25;000
.1980-81
Revenues Anticipated From
Project Operation 0
19
19 19 .
19_
19
PUBLIC UTILITIES REGULATORY POLICIES ACT
(PURPA) GRANT PROGRAM
APPLICATION'FOR FUNDS
To the Office of Utility Systems RG -721
Economic Regulatory Administration
Department of Energy
2000 M Street, N.W. Room 4306
Washington, D.C. 20461
Submitted By;
City of Lubbock, Municipal Utility System-
916
ystem916 Texas Ave.-., P.O. Box 2000
Lubbock,,Texas 79457
PART I: GENERAL INFORMATION
5
PART I
GENERAL INFORMATION
Ore Aaw...•t tw Is -+.axis
STANDAJW FORa 4U F*AL I dD0 7S)
n 14:
URPA
FEDERAL ASSISTANCE
L APPu
IL"�"&Ex
L `TATs
• eMNA
Gtrrs
APPLI
TOO"t
IDaT1.
N/A
1. TYPE ❑ PKA"MATTOR
t GATE
a>.
a S
Stn raw me -as {-w
ACTION ® trn.rc� rw
CATION
ser ...(A
le
Ata
Astlala 0 1!
IN—' all ❑ WnFICATIOR Of IIETDET (DKJ
Ls«
L LEGAL A"L)CANT/RECIPIENT
L rEDEJtAL Li/►LOTEA TDENTIFTCATIDN NO
a Awar•I trK. City. of Lubbock.
75-6000590-W
�
—
t atr..rs6-.ustl Municipal Electric System
' GIs.Itn.o. x..916. Texas Ave., P.O. Box 2000
F+to
• SOMMERr 18 11. 10!,5 14
t TTTu Title I Sectio
�-cft Lubbock. a.•+� Lubbock
;�
: now 79457
Fees..(
P. L. 95-617 P
To~ .r� N.�.Carroll McD{�nalds
``''''°'
Grants
>*
a •a ep&~ Na I
i TITLE AND DESCRIPTION Or AP►UC7S
PROJECT.
L TYPE Or APPLICANT/RECIPENT
.7.
A-tteb le�-wr",ty Oar Aweloo
L-1.tersbta I-=
tr U+rater] 1••UOnr
G-i-YIS•4 } I�ee TAM
A-oo,. csA..e;Pwl
o -Dame
E-ot,
PURPA Grants
= Penises
L.Aw ays-.s►.-t. ]roue.
M. TYPE or AJISISTANCE
1
A-isc Grow) 0-1srr+•o
G-t-t•�-��nt Gast L-Oo.r L.�.. sss•►
AREA Or PROJECT IMPACT '(Na..a. •! lelg
A •rat....
11. ESTIMATED NUM
IL TYPE or APPUGATION
SAaAM ate.)
MILE Or PERSONS
110,
Lubbock, Texas
SEMEFIT'NG
185,200
s-�--• o �aWh.
11. PROPOSED FUNDING Ia. CONGRESSIONAL
DISTRICTS OF
LL TYPE or CHANGE (Jr Pte s. Ja.I
A-Isv� Wien F-0— (SP.1r):
M.(yara. "im
• fTDERA; i eC s•
KAKI
► FGOJECT
AP nioLxT 00
1 t h.1
t
C-0-0. D.Mu..
E-TaaarusAar
L STATE 1L ►kOJECT
START
17. PROJECT
O
TE lar .Iw.s►.4•
DURAT)DN
LraPw ary► (�T��
a LOCA.,.00
I
2 YwIA.Iaei-.Is!
•. M10 .00 LL ESTIMATED
DATE TO Tar Nw�J, 4w
11. EXISTING FEDERAL IDEKTIFICATIDN NUMBER
B
I. 7v(al 1 .eo
DSUBMITTED CY p► 1s 80 5 22
NA
m FEDERAL AGENCY TO RECEIVE REQUESTI
(Nsaer, Ceew. J(AaA.. LJl •.ia)
21. REAtAAKS ADDED
Department of Energy.
ashin ton D.C. 20461
O Y" O 11*9
T2 a Ts be Int wt P aa...adt• a"
bold. I ►. M twe'r.l by OMt C+nvlat HS en aWvlr•s ens swimmmed. t.n.sr. It .a Na .r L�•w+••••
Ya 0 tee wnsw•)rtalN-/s w►r.31r�
M Odructr.rll tMr.K, r awvrwule dear.sssrs a" all ra"Indler an wmb:hm speq/w a•••--�
THE true sad O.>'erR. as dewls�I
bow
APPLICANT a.y •rar n"g b so es.rstsj
I
K 1 ❑ ❑
�a•I, ' E1)
CERTIFIES Yr+ •tpir•' aKc 04 wtwirear: YIP
THAT s.» ao.rta.r x at
Aram -cc ❑ ❑
► r .wts .o.
N/A
u) ❑ ❑
—) ZL .. TYPED RASE ARD TITRE
L
a OAR sighm
CERTIFYING Bill McAlister
.
REME•Ma O r
'
.
1G 80 5 22
SENTATIVE I
" AGENCY K"t
ZLON P•SJCJt Tar Uwe" daw
RECHVEO 1!
:L OROANLIATIONAt UNIT
17. AD"INISTRAT)VE OFFICE .
XL FEDERAL A"UCATION
IDEKTIFIGTION
IDEwnFcATiiom
21. ACTION TAKEN
FLNDIItO
Pas., sswN dlrr
IFS Tar seps" A w
O a. ABED
a. FEDERAL t AO
JLL ACTION DATE 10 -le
DATE is
1STARTING
O DEJECTED
t. AMICAKT AD
SL CONTACT FOR ADDITIONAL 1INFORMA
TION (N.v ..L I- pL~ r+..i+.l
SL Tr fwtt .(.w
a STATE
AD
1 0. GETMCU FOG
�NG
O` 11
9 LDGL
! m
37. REf1Alms ADO=
( A11tJCrE1R
a 13TT(Et JJO
■■
O L KPLnU
1. MAL t Jj0
O A WTTHOLOSIR
O rr QP+D
9L
a is wjV4 Ns.m embees.r4 a+� Mea Mrl.Iiwr wn s•s
mAa.r
► FEDERX AGDICY 446 DFFICW.
"'.dRI K rr.pnr ae.. asnsn pwtY Purt I. t C+Adr A♦i.
(Na... ead gdLv &~ go.)
FEDERAL AGENCY
R W bow k Mist me"
A -G 1 ACTION
N/A
N/A
STANDAJW FORa 4U F*AL I dD0 7S)
n 14:
URPA
PART Ik PROGRAM APPROVAL INFORMATION
9
PART 11
PROJECT APPROVAL IXFORb(AT10K
'Iter. 1.
pees This ass;stenCe reauet. reviAm Stafe, kcal, Fleroe of Covemi l; 9e4r
seg.orsa:, or ati+ee prsvA7 ratinoe Ptsw;ry Rofmc
X No
ttv* 2.
Dees This aserstance repvetr regv;n #tsfe. v local Phar of_Arostcy w
odviwq. sdreatrona' or hocK cleoroncos? board
YON X Fie (Attach Docve.enrat;*n)
hew 1.
Does this *%.;stance reaves, rtrwore eloorsnq%ovse (Anoch Coarermirtts)
se. ie. in ec:"• nce with OMF Circular A.95?
Yes X uo
h err �
Dors this ess:stonce reaves! ►ogv.re State, decal. Nava of Approving Agency
ves.w.c' of otter planning spprov;P Dore
herr. S.
Is the p•opose: p►etect severed 67 on epprvved campre-
ienNve Plan?
Yes X/lo
C60 ....•.e es,. 60—ROISS
Q.ecl'ane State
0
Loral
0 -
R sq conal
0
Location of Plan
herr 6.
Will " asarsfarsCe foavesfed sure * Federal N/A Nam* of Foderol inst6lla►;sm
iastaliatsan? Yes Flo fodeta! Popvlat:on donefitsng from Project
7or� 7.
Will The ossistanca requested Se on Federal land of F(aese of Foderal Iastaliatse"
ins►o(latser? N/A L.ocalmn of Federal Lend
-Yes-No Poeeent 61 Peeise+
Will the *st;stur.ce rogvested hor►t ee istrpQM K *fleCT See 3nstrvtt;ont (or oddss.one: infonrralra+ go V
46n the sr,vsossrosat? X Profislod.
'Yrs Fie
ate+. 9. ftt►.b.. sf:
Will The assistance tagvssted corse i.e displaco mem indr.ielvalr
of itsd;vidoelt, fse.:;res, lvss..esaes, or forces? Fsn;liss
�� /A bs+unasses
Yss` -No facers
.ftp" 10.
Is r.o v other relesed ais;starnce or iris Pa46et Previews, S" insiryCtient (or swousinal infor.etion to ie
pndo%. v anticipated? Pr0vije,d
Two X No
eo"�''#Two 11 S" instrwc6orks for ouit;onaf infare"dien h
fs tic project in a del'ignatod {load hared aria? iw Prrr;ded.
Yps X yio
PART 111: BUDGET INFORMATION
• .
11
PART III
BUDGET INFORMATION
1
I
I
9
e
ILLM
APplicant0 i ty of Lubbock
Date May 22, 1980
_111S
No
\.nrt
*DOE funds refer to the funds authorized under .section 208(1) of
the Energy Conservation'and Production Act. Non -DOR funds refer
to all other funds including other authorized DOE funds.
^• **This should include any subgrants, transfer, contracts, cooperative or
interagency agreements, and the services as products of experts and
consultants to perform essential services subject to the conditions
of the regulations.
M
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t►�-
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ILC
ppi.
*DOE funds refer to the funds authorized under .section 208(1) of
the Energy Conservation'and Production Act. Non -DOR funds refer
to all other funds including other authorized DOE funds.
^• **This should include any subgrants, transfer, contracts, cooperative or
interagency agreements, and the services as products of experts and
consultants to perform essential services subject to the conditions
of the regulations.
PART IV: PROGRAM NARRATIVE
COST OF SERVICE STUDY FOR CITY OF LUBBOCK
ELECTRIC SYSTEM
PART IV -A: Certification of Eligibility
The City of Lubbock municipal electric system meets the criteria for
eligibility for receiving Federal assistance from the PURPA Grant Program,
as prescribed by Section 461.12 of the PURPA regulations." Itis a covered
nonregulated electric utility system.
Part IV -B: Scope of,Work
I. Objective
To further its stated goals of energy conservation and provision of
equitable rates to consumers, PURPA requires each nonregulated electric
utility to consider a number of rate and service standards in a series of
public hearings. One of these standards is the "cost of service" standard.
It requires each utility to gather detailed information concerning costs of
providing electric service to various customer classes, with information
separated according to customer cost, demand cost, and evergy cost components.
The PURPA cost of service requirement is having a major impact on
municipally owned utilities which do not currently have this level of data
gathering and analysis capability.
The City of Lubbock plans to hold it's PURPA hearings in early Fall
1980. At the time we hold our hearings, we plan to state that a study will be
made available to consumers as soon as possible.
Being a small electric system, we will require the assistance of a
consulting firm to perform this study. The proposed project would provide
the funding for the hiring of':this consultant. The consultant will be
hired after advertising the needs and taking proposals from various qualified
firms.
2: Duties and Responsibilities Under PURPA to be Carried Out With DOE Funding
DOE funding will enable the City of Lubbock electric system to fulfill
the requirement of the cost of service standard, as provided in PURPA, Title I,
Subtitle B, Section 111, and 115.
3• Activities to be Performed.
The City of Lubbock electric system plans the following activities:
A. Define the needs and issues to be addressed by the consulting firm
to be hired, and design a contract to be awarded by City Council Action.
B. Advertise to known consulting firms, allowing for comparison of fees
charged for completion of the study according to specifications set
forth.
C. The Electric Utility Board (an advisory'board of citizens appointed by
and answerable to the City Council)will evaluate the proposals received,
and recommend to the City Council the firm which.most meets the criteria
set out in the specifications.
D. The City Council will review and evaluate the recommendation of the
Electric Utility Board, and act in their official capacity as the
governing body to enter into contract with the firm chosen to complete
the project.
E. Provide staff assistance for the gathering of information needed for
the completion of the study.
F. Consultant firm to complete the study.
G. After completion, the Electric Utility Board will evaluate the findings
and make recommendations to the City Council as to ways this informa-
tion can be used in the rate,determination process.
H. Council determines action necessary concerning cost of service study
information and makes it available to consumers.
4. Timetable
First Quarter, FY 81
Define needs and issues with regard to the cost of service standards.
Select consultant firm from proposals received.
Begin the gathering of information needed.
�.., Second Quarter, FY 81
Continue information flow to consultant.
Preparation of data by consultant.
Third Quarter, FY 81
/'� Evaluation of study by staff.
Evaluation of study by Electric Utility Board.
Recommendation of Electric Utility Board to Council.
Council takes action and makes study available to consumers.
5. Organization Structure
The City Council of Lubbock will act as prime authority on behalf of all
ratepayers. They will have sole authority to enter into a contract with a
consulting firm which is to be chosen during the process explained in item 3
of this application, and are also the final ratemaking authority for Lubbock.
The Electric Utility Board will coordinate the project between the
consulting firm, the staff, and the City Council.
The consulting firm selected will answer to the Electric Utility Board,
with assistance from the staff.
The staff will provide any necessary information and assistance to the
consulting firm.
6. Staffing
Carroll McDonald,.Director of Electric Sales and Service
Primary staff person,in,charge of all distribution, sales, collection,
and customer service departments for the City of Lubbock electric
system. Has 28 years experience in the utility business with both
private and public systems.
Walter Armstrong, Assistant to Director
Assists in management of electric system. Is in charge of all report-
ing to DOE. Has both distribution and management experience.
Barney Quillin, Operations Supervisor
In charge of Service Department, Meter Shop, and Substation Department.
Has 15 years experience in the Engineering Department. Barney attended
a seminar by American Public Power Association concerning cost of service.
ra
a
Leona Maxwell, Utility Office Manager
21 years billing, collection, and customer service experience.
Robert Massengale, Director of Finance
David Reagan, Assistant City Attorney
Tommy Buchanan, Registered Professional Engineer
8 years experience with Department of Agriculture REA divisiont.
Also has 1 1/2 years experience in Department of Energy in the
Economic Regulatory Administration.
7. Proposed Budget
1. Cost of service study (hiring of $30,000
consulting firm)
Staff time donated for gathering 4,638
of information and review of study
Total funds requested from DOE
Non -DOE funds contributed
34,638
30,000
4,638
34,638
PART V: ASSURANCES
15
PART V
ASSURANCES
no applicant hereby assures and Certifies that he will Comply with the regulations, policies, guidelines and re—
quirements, including OMB Circulars No. A-95, A-102 and FMC 7", as they elate to the application, accept—
coca and use of Federal funds for this federally—assistod project. Also the Applicant assures and certifies to
the grant that:
1. It possrssis legal authority to apply for the grant; that a
resolution. motion or similar action lois been duly
adopted or passed as an official act of the applicants
"ming body, authorizing the filing of the application,
including all t,tnderstandkV and assurarces contained
herein, and directing and authorizing the person identi-
fied as the official represernitive of the applicant to act
in Connection with the application and to provide such
additional information as may be required
2. It will comply with Title VI of the Civil Rights act of
1964 (P.L. 82x352) and in accordance wittr Titk VI of
that Act, no person in the United Statex Nall, tin the
ground of race.; color, or national origin, be excluded
*urn participation in, be denied the benefits of, or be
othervrise subjected to discrimination under any pn}
gam Or activity for which the applicant receives Federal
firtia.-itis' assistance and will imn-wdiately tBkt any mea-
sures necewry to effectustethis sgrwrwnL
3 It will Comply with Title Vi of the Civil Rights Act of
1564 '(42 USC MOM prohibiting employment discrimi-
nation where (t l the primary purpose of a grant is to
provide *employment or (2) discriminatory employment
Practices uric result in unepua.' treatment of pe.ruxu who
ni
aor should be benefiting from the grant -aided activity.
4. it will Comply with requirements of the provisions,
Of the Uniform RelocstiorL Assirance and Real Property
Acquisitions Act of 1D70 (P.L. 91-646) which provides
for fair and equitable treatment of perUns displaced u a
rtsult of Federal and federally assisted programs,
S. It will Comply with the provisions Of the Batch Act
which limit the political activity of employees.
L it will comply with the minimum wage and maximum
hours provisions of he Federal Fair Labor Standards
Act. as they apply to hospital and educational irtstitu-
tion employees of State and local governments.
7. It will establish safeguards to prohibit employees from
using their positions for a purpose that is or gittes the
appearance of being motivated.by a desire for private
pain for themselves or others, particulirly those with
"from they hove family, business, or other ties
B h will give the sponsoring agency or tate Cerapttoller
Generei_through any authorized representative the
access to and the right to examine all records, books,
papers, or documents related to the grant.
S. It will comply with all rtquirements imposed by the
Federal sponsoring agency concerning special
requirements of law, program requirements, and other
administrative requirements.
lost Will bl=re that the facilities under its ownership, lease or
supervision which shall be *Utilized in the a.ecomplishaent of the
project are not listed on the Environmental Protect4on Agency's
(EPA) list of Violating Facilities and that it will notify the
Fedexal grantor agency of the receipt of any communication from
tm Director of the EPR Office of Federal Activities indicating
that a facility to r*re used in the project is under consideration
for listing by the EPA.
11.7It will comply with the flood insurance purchase regiire=ents o:
Section 102(a) of the Flood Disaster Protection Act of 1973, Public
Law 93-2341 87 Stat. 9758 approved December 31, 1976. Section
102(a) rewires, on and after March 2, 1975, the purchase of flood.
insurance iii communities where such insurance is available as a
condition for the receipt of any -Federal financial assistance for
construction or acquisition purposes for use in any area that has
been identified by the Secretary of the Department of Eousing and
Urban Development as an area having special flood hazards.
16
PART V (Continued)
The phrase.*Federal financial assistance" includes any fc=
of loan, grant, guaranty -T insurance payment, rebate, subsidy,
disaster assistance loan or grant, or any other fo= of
direct or indirect rederal assistance.
12. It will assist the Federal grantor agency in its compliance
with Section 106 of the National Historic Preservation Act
Of 1966 as amended (16 V-S:C. 670), Executive Order 11593,
and the Archeological and Historic Preservation Act of
1966 (16 U.S.C. 469a-1 et seq.) by (a) consulting with the
State Historic Preservation Of.icer on the conduct of
investigations, as necessary, to identify properties listed
in or aligible•for inclusion in the National Register of
Historic Places that are subject to adverse effects(see 36 *CFR
Part 800.8) by the activity, and notifying the Federal
grantor agency of the existence of any such properties, and
by (b) complying with all requirements established by the
Federal grantor agency to avoid or mitigate adverse effects
upon such properties.