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HomeMy WebLinkAboutResolution - 2021-R0072 - TCOS Settlement PackageResolution No. 2021-R0072 Item No. 7.24 February 23, 2021 RESOLUTION WHEREAS, Lubbock Power & Light is the municipally owned electric utility of the City of Lubbock ("LP&L"); WHEREAS, in Public Utility Commission ("PUC") Docket No. 47576, LP&L was approved to integrate a portion of its load (the "Affected Load") into the Electric Reliability Council of Texas ("ERCOT"); WHEREAS, by the Order in PUC Docket No. 47576, LP&L was required to file its Application to Establish Wholesale Transmission Rates ("TCOS") no less than eight months prior to the integration date of June 1, 2021; WHEREAS, LP&L filed the TCOS case on or about August 18, 2020; WHEREAS, Staff of the PUC, Office of Public Utility Counsel, and Texas Industrial Energy Consumers (collectively, "Intervenors"), participated in the contested case before the State Office of Administrative Hearings, Docket No. 473-21-0043; WHEREAS, to avoid the uncertainty, time, and expense of further litigation of its TCOS, LP&L and Intervenors have reached a Stipulation and Settlement Agreement, providing for compromise and settlement of LP&L's request for an initial TCOS; WHEREAS, the City Council of the City of Lubbock (the "City Council") believes this Stipulation and Settlement Agreement is in the best interest of the ratepayers of LP&L; NOW, THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City of Lubbock's attorneys BE and are hereby authorized and directed to execute for and on behalf of the City of Lubbock, acting by and through Lubbock Power & Light ("LP&L") that certain Stipulation and Settlement Agreement, providing for compromise and settlement, by the City of Lubbock, Staff of the Public Utility Commission of Texas, Office of Public Utility Counsel, and Texas Industrial Energy Consumers (collectively, "Intervenors"), in the contested case styled Application of City of Lubbock, acting by and through Lubbock Power & Light, to Establish Initial Wholesale Transmission Rates and Tariffs, SOAH Docket No. 473-21-0043, and PUC Docket No. 51100, proceeding before the State Office of Administrative Hearings, substantially in the form as attached Passed by the City Council this 23`d day of February 2021. The City of Lubbock, acting by and through the City Council -�o t2 DANIEL M. R ATTEST: &ckarza, City S e c r e t a r APPROVED AS TO CONTENT: &A -- Andy Bur ham, Assistant Director/ CFO APPROVED AS TO FORM: Jt Sn ith, LP&L General Counsel Resolution No. 2021-R0072 SOAH DOCKET NO.473-21-0043 PUC DOCKET NO.51100 APPLICATION OF THE CITY OF § BEFORE THE STATE OFFICE LUBBOCK, BY AND THROUGH § LUBBOCK POWER & LIGHT, FOR § OF AUTHORITY TO ESTABLISH § INITIAL WHOLESALE § TRANSMISSION RATES AND § ADMINISTRATIVE HEARINGS TARIFFS § STIPULATION AND SETTLEMENT AGREEMENT The parties to this stipulation and settlement agreement (Agreement) are the City of Lubbock, acting by and through Lubbock Power & Light (LP&L), the Staff of the Public Utility Commission of Texas (Staff), Office of Public Utility Counsel (OPUC), and Texas Industrial Energy Consumers (TIEC). The parties shall be referred to individually either as a Signatory or by the respective acronyms assigned above, and collectively as the Signatories. The Signatories agree to support the Public Utility Commission's (the Commission) implementation of the Agreement in this proceeding and all future proceedings arising from the Agreement. The Agreement provides for the resolution of all issues addressed in Docket No. 51100, and provides for further additional provisions that will apply to LP&L's subsequent Interim Update of Wholesale Transmission Rates (Interim TCOS Update) and Comprehensive Transmission Cost of Service (Comprehensive TCOS Case) proceedings thereafter. I. RECITALS WHEREAS, on August 18, 2020, LP&L filed an application for authority to establish an initial Transmission Cost of Service (TCOS) rate to be effective and charged to transmission customers upon its integration with ERCOT on June 1, 2021 (Application); and WHEREAS, the Signatories intend to avoid the uncertainty, time, and expense of further litigation of this proceeding, by compromising and resolving LP&L's request for an initial TCOS rate; and WHEREAS, the Signatories have agreed upon an initial TCOS rate that LP&L may charge upon its integration with ERCOT on June 1, 2021, based in part upon its invested capital that is set forth in Attachments B-1 and B-2 to this Agreement; and WHEREAS, the Signatories have further agreed not to contest LP&L's filing of an Interim TCOS Update, which the Signatories agree will include the Commission approved transmission buildout termed "Option 4ow," other transmission projects currently in process that are in service at the time of that filing, and the transmission function's allocated share of LP&L's general plant, that are used and useful in the provision of electric transmission service at the time that the Interim TCOS Update is filed, which is to be no later than September 1, 2021; and NOW, THEREFORE, the Signatories, through their undersigned representatives, hereby enter into this Agreement on the following terms: H. ARTICLE I A. The Signatories agree that LP&L's wholesale transmission service rates will reflect an annualized transmission cost of service of $15,919,544, with initial rates to be charged upon the integration of the relevant portion of its load with ERCOT, which is expected to occur on June 1, 2021. The resulting rates will be based on the Commission - approved 2020 "4CP" Coincident Peak Load (4CP). The components of the $15,919,544 are shown in Attachment A. 2 B. No later than September 1, 2021, LP&L will file an Interim TCOS Update. This Interim TCOS Update will include —and the parties do not and will not object to the inclusion of or approval of '—investment associated with the integration of LP&L into ERCOT, including Option 4ow and other projects currently in process that are in service and used and useful at the time that Interim TCOS Update is filed, as well as the general plant additions with 61.4% allocated to the transmission function ,Z provided that the Commission grants LP&L's request for a good cause exception to allow the recovery of the allocated general plant. Staff, OPUC, and TIEC do not oppose LP&L's request for that good cause exception regarding the allocation of general plant to the transmission function in the Interim TCOS Update. The Signatories will not contest the filing of that Interim TCOS Update. Resulting rates will be based on the Commission -approved 2020 4CP. LP&L will not include additional payments in lieu of taxes or franchise fee equivalents in any requested Interim TCOS Update filed before the effective date of rates approved in LP&L's next Comprehensive TCOS Case. Baseline values for the Interim TCOS Update proceeding are as shown in Attachment A.3 ' This language relates only to the Interim TCOS filing; the prudence of the investment will be considered in the Comprehensive TCOS Case as provided in Paragraph G, below. 2 In the expected September 2021 Interim TCOS Update, LP&L will provide an updated Schedule F-5 contained in the Application, based on LP&L's financial records as of the end of the period used for the Interim TCOS Update, to establish the allocation of general plant to the transmission function, which may be more or less than 61.4%. 3 Operations and Maintenance (O&M), Other Expenses, and Taxes Other Than Income are combined into a single line item on Attachment A. 3 C. LP&L is not obligated to begin paying the $22 million per year "hold harmless" payments ordered in Docket No. 475764 until the integration facilities —including Option 4ow and other integration facilities, including the allocated portion of the General Plant ---are in service and included in LP&L's invested capital, and the resulting rate is approved and effective in the Interim TCOS Update referenced in Paragraph B, above. The "hold harmless" rate credits shall be implemented with an effective date simultaneous with the effective date of the rates approved in the Interim TCOS Update referenced in Paragraph B above. D. LP&L's rate of return is 8.27%, as recommended by Staff witness Diane Hopingardner on page 11 of her Direct Testimony.' E. LP&L agrees to file its Comprehensive TCOS Case no later than May 1, 2023, using a September 30, 2022 historical test -year end. LP&L further agrees to file all underlying schedules and workpapers using appropriate FERC accounts. F. LP&L's rate base for purposes of this Agreement and the Interim TCOS Update shall be as shown on Attachments B-1 and B-2. LP&L's requested rate base as shown on Attachments B-1 and B-2 is determined to be prudent. G. LP&L acknowledges that a prudence determination of any additions to LP&L's rate base subsequent to this proceeding will be considered in LP&L's subsequent Comprehensive TCOS Case. LP&L will follow the Non -Investor -Owned Utility Rate 4 Application of the City of Lubbock Through Lubbock Power & Light for Authority to Connect a Portion of Its System with the Electric Reliability Council of Texas, Docket No. 47576, Order at 16 (Mar. 15, 2018). 5 Direct Testimony of Diane Hopingardner at 11. 4 Filing Package that is approved by the Commission and in effect when it files its comprehensive TCOS rate case in 2023, but agrees to include in its application additional information supporting the prudence of its investment associated with the integration of LP&L into ERGOT, for plant additions with a cost exceeding $250,000 but is not required for transmission plant additions that did not require a CCN under 16 TAC § 25.101(c)(3), (c)(5)(C) through (c)(5)(F), (c)(6), or (c)(7) or to station equipment replacements and station capital maintenance as follows: 1. The name of the project and a brief description; 2. The docket number of Interim TCOS in which the project was first included; 3. The energized date of the project and whether the facility is currently in service; 4. Explanation of the need for the project in detail, including whether the project met a need identified in the utility's system planning studies; 5. Identify if the project was reviewed by ERCOT. If so, provide the documents that contain ERCOT's conclusions about the project; 6. If the project is a Substation: a) Include the relevant portions of system planning studies that support the need for the project along with the load types the project was planned to serve. If the project was planned to serve a limited number of customers with relatively large loads, the customers must be identified; b) The load growth rate in the area planned to be served by the project during each of the five calendar years immediately before the project was energized; 5 c) the load growth rate in the area served by the project during each calendar year starting with the year that the project was initially energized; d) peak load projected to be served by the project as forecasted by the applicant and consistent with the planning study; and e) peak load served by the project during each year since the project was initially energized; 7. A completed version of the chart below: (a) Project Name, (with CCN Docket No., if An (b) Estimated Costs at the Time of ERCOT Review (if Any)_Entr (c)Estintat ed Costs in First MCPR s (d) First MCPR Where Project App>ared (e) Final "Total Project Costs (f) Last MCPR Where Project Appeared (g) Percent difference between c and e 8. For any projects for which the Final Total Project Costs in column (e) exceed the Initial Estimated Costs in First Monthly Construction Progress Report (MCPR) Entry in column (c) by more than 10%, an explanation for the project having exceeded the initial cost estimate must be included; and 9. A completed version of the chart below listing all Contribution in Aid of Construction (CIAC), if any: Z Total Name I Costs Project Costs Project I Directly Charged Project Costs ; Relevant Requested to be Provision Included in Rate Base H. Depreciation rates shall be as stated in LP&L's application in Docket No. 51100 as shown in Attachment B-2. LP&L agrees to perform a depreciation study, which it will include in its next Comprehensive TCOS Case. This study must include net salvage in the calculation of depreciation expense, and the net salvage and average service lives must fully incorporate well -documented input from LP&L technical personnel as well as historical data on actual service lives, gross salvage, and cost of removal compiled from LP&L's continuing property records, to the extent that sufficient historical retirement and net salvage data is available. I. LP&L's rate case expenses shall be as stated in the Direct Testimony and First, Second, and Third Supplemental Direct Testimonies of Lambeth Townsend, less the adjustments proposed by Staff pages 26 through 33 of the Direct Testimony of Anna Givens6, plus any actual additional fees and expenses incurred until SOAH remands the case back to the Commission for approval of the settlement, less any additional adjustments agreed upon by the parties, and shall be recoverable through a 12-month rider. As of February __, 2021, LP&L's recoverable rate case expenses total 6 Direct Testimony of Anna Givens at 26-33. Tariff VA J. The transmission rates in the proposed tariff filed along with the proposed order were calculated using the 2020 4CP values provided in Commission Staff s proposed Matrix B filed in Docket No. 51612. The Parties note that Article I.A of this Agreement indicates that LP&L's wholesale transmission rates "will be based on the Commission - approved 2020 "4CP" Coincident Peak Load (4CP)." Because the Commission has not yet approved the 2020 4CP, the Parties request that the Commission wait until Docket No. 51612 concludes before issuing a final order in this proceeding. If the Commission ultimately approves a 2020 4CP that diverges from Commission Staffs proposed Matrix B filed in Docket No. 51612, the Parties request an opportunity to develop and file an updated agreed proposed tariff within one week of the final order in Docket No. 51612. III. ARTICLE II A. Proposed Order The terms of this Agreement are fair, reasonable, and in the public interest, and the Commission should enter the Proposed Order attached as Attachment C to this Agreement, which is consistent with the terms of this Agreement, or an order consistent with all terms of this Agreement. The Signatories agree to fully support this Agreement in all respects and to use all reasonable efforts to request prompt entry of the proposed order attached as Attachment C. B. Effect of Modification of Agreement If the Commission issues a final order that is inconsistent with the terms of the Agreement, each Signatory has the right to withdraw from the Agreement, to submit testimony, and to obtain a hearing and advocate any position it deems appropriate regarding any issue in 3 this Agreement. The Signatories further agree that the terms and conditions in this Agreement are interdependent and that the various provisions of this Agreement are not severable. C. No Precedent Because the matters resolved herein are resolved on the basis of compromise and settlement, nothing in this Agreement should be considered precedent. No Signatory shall be deemed to have agreed to the propriety of any theory or principle that may be said to underlie any of the issues resolved by this Agreement. Because this is a settlement, the Signatories recognize that no Signatory is under any obligation to take the same position in any other docket, except as specifically required by this Agreement, whether or not the docket presents the same or similar circumstances. This Agreement is binding on each of the Signatories only for the purpose of settling the issues herein and for no other purpose. Oral and written statements made during the course of settlement negotiations shall not be used as an admission or concession of any sort or as evidence in this or any other proceeding. D. Entire AF-reement This Agreement is the entire understanding and agreement of the Signatories to this Agreement, and it supersedes prior understandings and agreements, if any, among the Signatories with respect to the subject matter of the Agreement. There are no representations, agreements, arrangements, or understandings, oral or written, concerning the subject matter hereof between and among the Signatories to this Agreement that are not fully expressed herein. E. Authorization to Sign Each person executing this Agreement represents that he or she is authorized to sign the Agreement on behalf of the Signatory represented. 0 F. Countersigned Originals This document may be countersigned by each Signatory on separate originals. Each signature shall be treated as if it is an original signature. This Agreement has been executed, approved, and agreed to by the Signatories hereto in multiple counterparts, each of which shall be deemed an original, on the date indicated below by the Signatories hereto, by and through their undersigned duly authorized representatives. This Agreement shall be effective and binding when it is signed by all Signatories. Executed as shown below: CITY OF LUBBOCK, ACTING BY AND THROGUH LUBBOCK POWER & LIGHT By:_Lambeth Townsend PUBLIC UTILITY COMMISSION OF TEXAS STAFF By._Rustin Tawater OFFICE OF PUBLIC UTILITY COUNSEL By:_ Chris Ekoh TEXAS INDUSTRIAL ENERGY CONSUMERS By: Michael A. McMillin 10 Signed this 29th of March 2021 Signed this 29th of March 2021 Isl Rustin Tawater Signed this 2 )thof Mar 2021 Signed this 29th of March 2021 Isl Michael A McMillin 17 11 Attachment A Baseline TCOS Values Lubbock Power & LiPh Description Operation & Maintenance, Other Expenses and Taxes Other than Income' Depreciation and Amortization Federal Income Taxes Return on Rate Base Total Revenue Requirement Less Other Revenues Total Approved Transmission Function (2) $6,651,846 $2,279,376 $7,049,210 $15,980,432 $60,888 Total $15,919,544 Notes: 1. Operations and Maintenance (O&M), Other Expenses, and Taxes Other Than Income are combined in a single item as shown for the future Interim TCOS update proceeding. Attachment B-1 Settlement Rate Base Lubbock Power & Light Transmission Reference or Description Function Schedule (1 2 (3 Original Cost of Plant General Plant Accumulated Depreciation Net Plant in Service Other Rate Base Items Plant Held for Future Use Accumulated Provisions Materials & Supplies Cash Worldng Capital Prepayments Other Rate Base Regulatory Assets Subtotal Total Rate Base Rate of Return Return on Invested Capital $ 86,823,355 $ 15,534,843 $ 20,905,130 $ 81,453,067 $ 2,746,825 $ 1,038,438 $ 3,785,263 $ 85,238,330 8.27% 7,049,210 Attachment B-2 Attachment B-2 Attachment B-2 Schedule B in As -Filed RFP Schedule B in As -Filed RFP Attachment B-2 Settlement Plant in Service, Accumulated Depreciation, and Depreciation Rates Lubbock Power & Light Less Total Total Idled 230 kV Net Transmission Description Balances Assets 1 Balances Balances : 1 (2) (3 (4) (5 YlantIn bervice Transmission FERC 350 Land Trans FERC 352 Struct Imp Trans FERC 353 Substation Equip FERC 354 Towers, Fixt Trans FERC 355 Poles, Fixt Trans FERC 356 Oh Cond Dev Trans Subtotal Transmission General Plant FERC 389 Land & Land Rights FERC 390 Structures/Imp FERC 391.1 Office Furniture Equip FERC 391.2 Computer Equip FERC 392 Transportation Equip FERC 394 Tools, Shop, Garage Equip FERC 395 Lab Equip FERC 396 Power Oper Equip FERC 397 Communication Equip FERC 398 N isc Equip FERC 399 Other Tangible Property Subtotal General Plant $ 2,207,486 $ - $ 2,207,486 $ 2,207,486 $ 2,885,342 $ - $ 2,885,342 $ 2,885,342 $ 39,708,961 $ (12,877,327) $ 26,831,634 $ 26,831,634 $ 792,041 $ - $ 792,041 $ 792,041 $ 31,435,693 $ (2,252,828) $ 29,182,865 $ 29,182,865 $ 25,209,899 $ (285,912) $ 24,923,987 $ 24,923,987 $ 102,239,422 $ (15,416,067) $ 86,823,355 $ 86,823,355 $ 317,953 $ - $ 317,953 $ 33,396 $ 7,278,275 $ - $ 7,278,275 $ 764,477 $ 448,130 $ - $ 448,130 $ 47,069 $ 3,720,445 $ - $ 3,720,445 $ 390,778 $ 18,290,252 $ - $ 18,290,252 $ 11,225,987 $ 71,590 $ - $ 71,590 $ 43,940 $ 68,366 $ - $ 68,366 $ 41,961 $ 2,164,619 $ - $ 2,164,619 $ 1,328,576 $ 1,853,635 $ - $ 1,853,635 $ 1,137,703 $ 260,077 $ - $ 260,077 $ 159,627 $ 588,704 $ - $ 588,704 $ 361,328 $ 35,062,045 $ - $ 35,062,045 $ 15,534,843 Total $ 137,301,467 $ (15,416,067) $ 121,885,400 $ 102,358,198 Attachment B-2 Settlement Plant in Service, Accumulated Depreciation, and Depreciation Rates Lubbock Power & Light Less Total Total Idled 230 kV Net Transmission Description Balances Assets s Balances Balances a I 2 (3) 4 5 Accumulated Depreciation Transmission FERC 350 Land Trans FERC 352 Struct Imp Trans FERC 353 Substation Equip FERC 354 Towers, Fixt Trans FERC 355 Poles, Fixt Trans FERC 356 Oh Cond Dev Trans Subtotal Transmission General Plant FERC 389 Land & Land Rights FERC 390 Structures/Imp FERC 391.1 Office Furniture Equip FERC 391.2 Computer Equip FERC 392 Transportation Equip FERC 394 Tools, Shop, Garage Equip FERC 395 Lab Equip FERC 396 Power Oper Equip FERC 397 Communication Equip FERC 398 Misc Equip FERC 399 Other Tangible Property Subtotal General Plant $ 151,382 $ - $ 151,382 $ 151,382 $ 6,870,015 $ (3,471,052) $ 3,398,964 $ 3,398,964 $ 464,703 $ - $ 464,703 $ 464,703 $ 2,010,177 $ (1,846,443) $ 163,735 $ 163,735 $ 6,639,476 $ (251,102) $ 6,388,374 $ 6,388,374 $ 16,135,753 $ (5,568,596) $ 10,567,157 $ 10,567,157 $ 3,547,130 $ - $ 3,547,130 $ 372,574 $ 159,561 $ - $ 159,561 $ 16,760 $ 3,653,229 $ - $ 3,653,229 $ 383,718 $ 11,794,646 $ - $ 11,794,646 $ 7,239,187 $ 46,947 $ - $ 46,947 $ 28,815 $ 68,134 $ - $ 68,134 $ 41,819 $ 1,814,248 $ - $ 1,814,248 $ 1,113,529 $ 1,511,700 $ - $ 1,511,700 $ 927,834 $ 207,101 $ - $ 207,101 $ 127,112 $ 141,139 $ - $ 141,139 $ 86,627 $ 22,943,834 $ - $ 22,943,834 $ 10,337,974 Total $ 39,079,587 $ (5,568,596) $ 33,510,991 $ 20,905,130 Attachment B-2 Settlement Plant in Service, Accumulated Depreciation, and Depreciation Rates Lubbock Power & Light Annual Description Rates Reference (1) (2) (3) Depreciation Rates Transmission FERC 350 Land Trans FERC 352 Struct Imp Trans FERC 353 Substation Equip FERC 354 Towers, Fixt Trans FERC 355 Poles, Fixt Trans FERC 356 Oh Cond Dev Trans General Plant FERC 389 Land & Land Rights FERC 390 Structures/Imp FERC 391.1 Office Furniture Equip FERC 391.2 Computer Equip FERC 392 Transportation Equip FERC 394 Tools, Shop, Garage Equip FERC 395 Lab Equip FERC 396 Power Oper Equip FERC 397 Communication Equip FERC 398 Misc Equip FERC 399 Other Tangible Property 0.00% WP/13-1/6 in As -Filed RFP 1.67% WP/13-1/6 in As -Filed RFP 1.82% WP/13-1/6 in As -Filed RFP 1.67% WPB-1/6 in As -Filed RFP 1.82% WP/13-1/6 in As -Filed RFP 1.82% WPB-1/6 in As -Filed RFP 0.00% Attachment Staff 1-14 3.03% Attachment Staff 1-14 5.42% Attachment Staff 1-14 18.12% Attachment Staff 1-14 10.00% WP/13-1/6 in As -Filed RFP 7.40% Attachment Staff 1-14 5.21% Attachment Staff 1-14 7.60% Attachment Staff 1-14 5.37% Attachment Staff 1-14 10.00% WP/13-1/6 in As -Filed RFP 5.45% Attachment Staff 1-14 ' Source: LP&L As -Filed RFP Schedule 13-1. 2 Amount allocated to the Transmission Function using LP&L As -Filed RFP Allocators. 3 Source: LP&L As -Filed RFP Schedule B-5. 4 LP&L depreciation rates used for assets in this FERC account vary. The depreciation rate shown is the weighted average depreciation rate for existing LP&L plant costs in this FERC account calculated based on information in Attachment Staff 1-1, specifically Columns (3), (55), and (59). Attachment Staff 1-1 was provided by LP&L in response to Public Utility Commission of Texas Staffs Request for Information 1-1 in Docket No. 51100. In LP&Vs Interim TCOS Update, actual depreciation rates associated with specific assets, for which there are changes in Plant in Service balances from those shown in Attachment Staff 1-1 Column (3), will be utilized. Attachment C SOAH DOCKET NO.473-21-0043 PUC DOCKET NO.51100 APPLICATION OF THE CITY OF § BEFORE THE STATE OFFICE LUBBOCK, BY AND THROUGH § LUBBOCK POWER & LIGHT, FOR § OF AUTHORITY TO ESTABLISH § INITIAL WHOLESALE § TRANSMISSION RATES AND § ADMINISTRATIVE HEARINGS TARIFFS § PROPOSED ORDER This Order addresses the application of the City of Lubbock, acting by and through Lubbock Power & Light (LP&L), for approval of its initial transmission cost of service (TCOS) and wholesale transmission rates to be charged upon the integration of a portion of its load with the Electric Reliability Council of Texas (ERCOT), which is expected to occur on June 1, 2021, and pursuant to the Public Utility Commission's (the Commission) Order in Docket No. 47576. ` LP&L filed a unanimous stipulation and settlement agreement (agreement) that resolved all issues among the Parties to this proceeding. The signatories to the agreement are LP&L, the Staff of the Public Utility Commission of Texas (Staff, Office of Public Utility Counsel (OPUC), and Texas Industrial Energy Consumers (TIEC) (collectively, the Parties). The Commission approves LP&L's application, as modified by the agreement, to the extent provided in this Order. The Commission adopts the following findings of fact and conclusions of law: - Application of the City of Lubbock Through Lubbock Power and Light for Authority to Connect a Portion of its System with the Electric Reliability Council of Texas, Docket No. 47576, Order (Mar. 15, 2018). 1 I. Findings of Fact Applicant 1. LP&L is a municipally owned electric utility that is currently connected to the Southwest Power Pool (SPP) system and that provides retail electric service in and around the City of Lubbock. 2. In Docket No. 47576, LP&L received approval from the Commission to integrate a portion of its load (the affected load) into the ERCOT system with a targeted integration date of June 1, 2021. 3. In the stipulation and Order approving integration of the affected load in Docket No. 47576, LP&L received authorization to file a TCOS case in advance of its targeted ERCOT integration date. The Order requires LP&L to file for an initial TCOS rate no less than eight months in advance of June 1, 2021. Application 4. On August 18, 2020, LP&L filed an application and statement of intent to establish initial wholesale transmission rates that are to be charged to ERCOT wholesale transmission customers upon its integration into ERCOT, which is expected to occur on June 1, 2021. 5. In its application, LP&L requested an annual TCOS revenue requirement of $45,005,314 and an annual wholesale transmission rate of $630.54 per megawatt (MW). 6. LP&L's application also sought recovery of all reasonable and necessary rate case expenses that it incurs in connection with this proceeding. LP&L proposed to recover reasonable and necessary rate case expenses from its transmission service customers through a surcharge assessed over a six-month period. 7. LP&L complied with the form and instructions for the Commission's Rate Filing Package for Municipally Owned Utilities, and no party challenged the adequacy and completeness 2 of LP&L's application. In State Office of Administrative Hearings (SOAH) Order No. 4, the Administrative Law Judges (ALJs) found that LP&L's application was sufficient. 8. This case was referred to SOAH on September 3, 2020. Notice 9. On August 26, 2020, LP&L filed an affidavit from Lambeth Townsend, attorney for LP&L, attesting to the provision of notice of the application via first-class mail to OPUC counsel and to all entities directly affected by LP&L's proposed wholesale transmission rates. 10. In Order No. 4 filed on October 8, 2020, the ALJs found LP&L's notice sufficient. Intervenors 11. In a prehearing conference occurring on September 21, 2020, the SOAH ALJs granted Intervenor status to OPUC and TIEC. In addition to Staff and LP&L, OPUC, and TIEC are the only other parties to this case. Evidence: Testimony of Parties 12. On August 18, 2020, LP&L included in its application the Direct Testimony of David W. McCalla, Andrew C. Burcham, Laurie A. Tomczyk, Troy L. Vaughn, Tony Georgis, and Oncor Electric Delivery LLC witnesses Wilson P. Peppard and Coler D. Snelleman, along with the rate case expense testimony of Lambeth Townsend from the law firm of Lloyd Gosselink Rochelle & Townsend, P.C. Mr. Townsend supplemented his Direct Testimony on November 9, 2020, December 7, 2020, and 13. On November 6, 2020, OPUC filed the Direct Testimony of Karl Nalepa, and TIEC filed the Direct Testimony of Jeffry Pollock. 14. On November 12, 2020, Staff filed the Direct Testimony of Diane Hopingardner, Anna Givens, John Poole, Adrian Narvaez, and Reginald Tuvilla. 3 15. On November 25, 2020, LP&L filed the Rebuttal Testimony of David W. McCalla, Andrew C. Burcham, Tony Georgis, and Laurie A. Tomczyk. 16. On January [or February] , 2021, Parties filed a Joint Motion to Admit Evidence. 17. On January [or February] 2021, Order No. admitted the following evidence into the record: (a) the Application and all attachments filed on August 18, 2020, and all of the Direct, Supplemental, and Rebuttal Testimonies of LP&L; (b) the affidavit attesting to the provision of notice filed on August 26, 2020; (c) Staff's recommendation on sufficiency filed on October 6, 2020; (d) the Direct Testimony of intervenors referenced in Finding of Fact No. 13; and (e) the Direct Testimony of Staff referenced in Finding of Fact No. 14. SOAR Proceeding 18. On September 3, 2020, the Commission referred this docket to SOAH and ordered LP&L, Staff, and any other interested party to file a list of issues by September 10, 2020. 19. On September 24, 2020, the Commission approved the Preliminary Order for this docket, setting forth a number of issues to be addressed. 20. On December 8, 2020, the Parties filed a Notice of Settlement in Principle and Request to Cancel Hearing. On December 9, 2020, the ALJs cancelled the hearing on the merits in this case, which had previously been scheduled for December 14, 2020 through December 18, 2020. The Aereement 21. On January [or February] , 2021, the Parties executed a stipulation and settlement agreement that resolves all issues in this case. 4 22. On January [or February] , 2021, the Parties filed the agreement, including supporting schedules, proposed wholesale transmission tariff, Proposed Order, and the testimony of David W. McCalla in support of the agreement. Staff also filed the Direct Testimonies of in support of the agreement. 23. The agreement between the Parries is reasonable. 24. Under the agreement, LP&L's wholesale transmission service rates will reflect an annualized transmission cost of service of $15,919,544 with initial rates to be charged upon the integration of the affected load with ERCOT, which is expected to occur on June 1, 2021. The resulting rates will be based on the Commission -approved 2020 4CP. 25. Under the agreement, no later than September 1, 2021, LP&L will file an Interim Update of Wholesale Transmission Rates (Interim TCOS Update). The Parties have agreed that the Interim TCOS Update will include, and the Parties do not and will not object to the inclusion of or approval of,2 investment associated with the integration of LP&L into ERCOT, including Option 4ow and other projects currently in process that are in service and used and useful at the time that the Interim TCOS Update is filed, as well as the general plant additions with 61.4% allocated to the transmission function.' Staff, OPUC, and TIEC do not oppose LP&L's request for a good cause exception to include in its Interim TCOS Update the general plant additions allocated to the transmission function. The Signatories have agreed not to contest the filing of that Interim TCOS Update. Baseline values for the Interim TCOS Update proceeding are as shown in Attachment A to the agreement. 2 This language relates only to the Interim TCOS filing; the prudence of the investment will be considered in the Comprehensive TCOS case as provided in Finding of Fact No. 29, below. ' In the expected September 2021 Interim TCOS Update, LP&L will provide an updated Schedule F-5 contained in the application, based on LP&L's financial records as of the end of the period used for the Interim TCOS Update, to establish the allocation of general plant to the transmission function, which may be more or less than 61.4%. 5 26. The agreement states that the rates resulting from the Interim TCOS Update addressed in Finding of Fact No. 25, above, will be based on the Commission -approved 2020 4CP. LP&L has agreed that it will not include additional payments in lieu of taxes or franchise fee equivalents in any requested Interim TCOS Update filed before the effective date of rates approved in LP&L's next comprehensive TCOS rate proceeding. 27. Under the agreement, LP&L is not obligated to begin paying the $22 million per year "hold harmless" payments ordered in Docket No. 47576 until the integration facilities, including Option 4ow, other integration facilities, and allocated general plant referenced in Finding of Fact No. 25, above, are in service, included in LP&L's invested capital, and the resulting rate is approved and effective in the Interim TCOS Update referenced in Finding of Fact No. 25. The "hold harmless" rate credits shall be implemented with an effective date simultaneous with the effective date of the rates approved in the Interim TCOS Update referenced in Finding of Fact No. 25. 28. The agreement states that LP&L's rate of return is 8.27%, as recommended by Staff witness Diane Hopingardner in her Direct Testimony.4 29. Under the agreement, LP&L must file its next comprehensive TCOS rate case no later than May 1, 2023, using a September 30, 2022 historical test -year end. LP&L further agreed to file all underlying schedules and workpapers using appropriate FERC accounts. 30. The agreement requires LP&L's rate base for purposes of this settlement to be as shown in Attachments B-1 and B-2 to the agreement. Under the agreement, LP&L's requested rate base as shown in Attachments 13-1 and B-2 is determined to be prudent. 4 Direct Testimony of Diane Hopingardner at 11 (Hopingardner Direct). 6 31. The agreement states that a prudence determination of any additions to LP&L's rate base subsequent to this proceeding will be considered in LP&L's next comprehensive TCOS rate case. LP&L agrees to follow the Non -Investor -Owned Utility Rate Filing Package that is approved by the Commission and in effect when LP&L files its comprehensive TCOS rate case in 2023, but agrees to include in its application additional information supporting the prudence of its investment associated with the integration of LP&L into ERGOT, for plant additions with a cost exceeding $250,000 but is not required for transmission plant additions that did not require a CCN under 16 TAC § 25. 101 (c)(3), (c)(5)(C) through (c)(5)(F), (c)(6), or (c)(7) or to station equipment replacements and station capital maintenance, as follows: A. The name of the project and a brief description; B. The docket number of Interim TCOS in which the project was first included; C. The energized date of the project and whether the facility is currently in service; D. Explanation of the need for the project in detail, including whether the project met a need identified in the utility's system planning studies; E. Identify if the project was reviewed by ERCOT. If so, provide the documents that contain ERCOT's conclusions about the project; F. If the project is a Substation: 1. Include the relevant portions of system planning studies that support the need for the project along with the load types the project was planned to serve. If the project was planned to serve a limited number of customers with relatively large loads, the customers must be identified; 2. The load growth rate in the area planned to be served by the project during each of the five calendar years immediately before the project was energized; 3. The load growth rate in the area served by the project during each calendar year starting with the year that the project was initially energized; 4. Peak load projected to be served by the project as forecasted by the applicant and consistent with the planning study; and 5. Peak load served by the project during each year since the project was initially energized; G. A completed version of the chart below: (a) Project Name, (with CCN Docket No., if An (b) Estimated Costs at the Time of ERCOI Review (if An . (c)Estimat ed Costs in First MCPR Entry*_ (d) First MCPR Where Project Appeared (e) Final Total Project Costs (f) Last MCPR Where Project Appeared (g) Percent difference between c and e H. For any projects for which the Final Total Project Costs in column (e) exceed the Initial Estimated Costs in First Monthly Construction Progress Report (MCPR) Entry in column (c) by more than 10%, an explanation for the project having exceeded the initial cost estimate must be included; and I. A completed version of the chart below listing all Contribution in Aid of Construction (CIAC), if any: 3 32 33. 34. Project Costs II Total Project Directly Charged Proiect Name I Costs to Customers Project Costs Requested to be Included in Rate Base Relevant Tariff Provision The agreement states that depreciation rates shall be as stated in Attachment B-2 to the agreement. LP&L agrees to perform a depreciation study, which it will include in its next comprehensive base rate case. This study must include net salvage in the calculation of depreciation expense, and the net salvage and average service lives must fully incorporate well -documented input from LP&L technical personnel as well as historical data on actual service lives, gross salvage, and cost of removal compiled from LP&L's continuing property records, to the extent that sufficient historical retirement and net salvage data is available. Under the agreement, LP&L's rate case expenses are those as stated in the Direct Testimony and the First, Second, and Third Supplemental Testimonies of Lambeth Townsend, less the adjustments proposed by Staff on pages 26 through 33 of the Direct Testimony of Anna Givens, plus any actual additional fees and expenses incurred until SOAH remanded the case back to the Commission for approval of the agreement. The agreement states that LP&L's rate case expenses shall be recoverable through a 12-month rider. Parties had the opportunity to review all LP&L rate cases expenses for reasonableness and necessity. LP&L's total rate case amount, determined in accordance with the agreement in Finding of Fact No. 33, above, is $ H. Conclusions of Law 0 1. The Commission has authority over this application under PURA' § 35.004. 2. LP&L is a municipally owned utility as defined in PURA § 11.003(11) and, upon the integration of the affected load with ERCOT, will be an electric utility as defined in PURA § 35.001. 3. Upon the integration of the affected load with ERCOT, LP&L will be a transmission service provider as defined in 16 Tex. Admin. Code (TAC) § 25.5(141) that provides transmission service as defined in PURA § 31.002(20). 4. LP&L provided notice of the application that complies with 16 TAC § 22.55. 5. LP&L's application in this proceeding was consistent with the requirement that it be filed no less than eight months in advance of LP&L's anticipated ERCOT integration date, as set forth in the Parties' agreement and Finding of Fact No. 56 in the Commission's Order in Docket No. 47576. 6. Pursuant to 16 TAC § 25.3(b), good cause exists to allow LP&L to include the portion of its general plant allocable to the transmission function in accordance with the Parties' agreement in its transmission invested capital in the Interim TCOS Update described in Finding of Fact No. in this Order. 7. The agreement complies with the requirements of 16 TAC § 25.192. 8. LP&L's TCOS of $15,919,544 is reasonable and necessary and calculated in accordance with 16 TAC § 25.192(c). 9. LP&L's annual wholesale transmission rate of $0. per kilowatt ( ) is properly calculated under 16 TAC § 25.192. 5 Public Utility Regulatory Act, Tex. Util. Code §§ 11.001-66.016. 10 10. LP&L's proposed rate -case expenses of $ comply with 16 TAC § 25.245. 11. The Commission processed the application in accordance with the requirements of PURA, the Administrative Procedure Act, and Commission rules. III. Ordering Paragraphs In accordance with these finding of fact and conclusions of law, the Commission issues the following orders: 1. The Commission approves the rates, terms, and conditions of the agreement to the extent provided in this Order. 2. The Commission approves LP&L's proposed wholesale transmission tariff attached to the agreement, including its rates. 3. The Commission establishes LP&L's annual TCOS revenue requirement as $15,919,544, effective as of June 1, 2021, or other date that LP&L becomes connected to the ERCOT transmission system, and the resulting TCOS rate must be computed using the Commission - approved ERCOT 2020 4CP. 4. The Commission establishes LP&L's annual wholesale transmission rate as $ per kW per year, effective as of June 1, 2021, or the date that LP&L becomes connected to the ERCOT transmission system. 5. No later than September 1, 2021, LP&L shall file an Interim TCOS Update, consistent with the agreement, that may include investment associated with the integration of LP&L into ERCOT, including Option 4ow and other projects currently in process that are in service and used and useful at the time that Interim TCOS Update is filed, as well as the general plant additions with 61.4% allocated to the transmission function.6 Baseline value for the 6 As provided in Finding of Fact No. 25. 11 Interim TCOS Update filing will be as set forth in Attachment A to the agreement. Good cause exists to permit LP&L to include this general plant allocation in this Interim TCOS Update. 6. LP&L is not obligated to begin paying the $22 million per year "hold harmless" payments ordered in Docket No. 47576 until the integration facilities, including Option 4ow, other integration facilities, and allocated general plant are in service, and included in LP&L's invested capital, and the resulting rate is approved and effective in the Interim TCOS Update referenced in Ordering Paragraph No. 5, above. The "hold harmless" rate credits shall be implemented with an effective date simultaneous with the effective date of the rates approved in the Interim TCOS Update referenced in Ordering Paragraph No. 5. 7. LP&L shall file its next comprehensive TCOS rate case no later than May 1, 2023, using a September 30, 2022 historical test -year end. LP&L shall file all underlying schedules and workpapers using applicable FERC accounts. 8. LP&L may recover $ in rate -case expenses incurred in connection with this proceeding through a separate surcharge of $ per kW per month of coincident peak demand over a period of 12 months. 9. LP&L must modify its wholesale transmission service rate tariff to limit recovery of its rate -case expenses to $ over a period of 12 months. 10. LP&L must begin billing the wholesale transmission rate and ERCOT export rates on services rendered on June 1, 2021, or the date that LP&L becomes connected to the ERCOT transmission system. 12 11. LP&L must file a report documenting the calculation and collection of the rate -case expense surcharge from customers in compliance with this Order. The filing must be made in Docket No. , Compliance Filing for Docket No. 51100. 12. Within 10 days of the date of this Order, LP&L must file a clean record copy of its revised wholesale transmission service rate tariff, as approved by this Order and with the proper effective date, with the Commission's Central Records Division to be stamped Approved and kept in the Commission's tariff book. 13. Entry of this Order does not indicate the Commission's endorsement or approval of any binding holding or precedent as to the appropriateness of any principle or methodology underlying the agreement. 14. The Commission denies all other motions and any other requests for general or specific relief that are not expressly granted. 13 Signed at Austin, Texas the day of February 2021. 8168637/3693/04 PUBLIC UTILITY COMMISSION OF TEXAS DEANN T. WALKER, CHAIRMAN ARTHUR C. D'ANDREA, COMMISSIONER SHELLY BOTKIN, COMMISSIONER 14 LUBBOCK POWER & LIGHT TARIFF FOR ELECTRIC SERVICE WHOLESALE TRANSMISSION SERVICE Effective Date: Revised: N/A Availability Sheet No. 1 Revision: 0 Page 1 of 6 To eligible Transmission Service Customers for Wholesale Transmission Service through the transmission system of the City of Lubbock, acting by and through Lubbock Power & Light (LP&L), at all points where transmission facilities of adequate capacity and suitable voltage are available to provide service, in accordance with 16 Tex. Admin. Code §§ 25.191-.203 (TAC). Application Applicable only to wholesale transactions involving the wholesale purchase of electric power and energy. This tariff for Wholesale Transmission Service is applicable to Transmission Service using any transmission facilities owned by LP&L in accordance with 16 TAC §§ 25.191-.203. Type of Service Three phase, 60-hertz alternating current, delivered onto or received from LP&L's transmission system at 60,000 volts or greater and on transmission facilities that have been prepared and made available for this service. Transmission Service Requirements As a condition to obtaining wholesale Transmission Service, the Transmission Service Customer shall comply with all requirements for initiating Transmission Service in accordance with 16 TAC § 25.198, including the execution of an Interconnection Agreement with each Transmission Provider to which it is physically connected, and the Transmission Service Customer shall meet all Electric Reliability Council of Texas (ERCOT) requirements as specified in the ERCOT Protocols and Operating Guides. Conditions Precedent for Receiving Service Subject to the terms and conditions hereof and of 16 TAC § 25.198, LP&L will provide wholesale Transmission Service to any eligible Transmission Service Customer, provided that: (A) the eligible Transmission Service Customer has completed an Application for Transmission Service, as provided under 16 TAC § 25.198; (B) the eligible Transmission Service Customer and LP&L, or a third party, have completed installation of all equipment specified under the Interconnection Lubbock Power & Light Wholesale Transmission service Tariff Effective Date: Revised: N/A LUBBOCK POWER & LIGHT TARIFF FOR ELECTRIC SERVICE WHOLESALE TRANSMISSION SERVICE Sheet No. 1 Revision: 0 Page 2 of 6 Agreement, consistent with NERC and ERCOT guidelines as set forth in 16 TAC § 25.198; (C) the eligible Transmission Service Customer has executed an Interconnection Agreement for service under this tariff or, if necessary, requested in writing that LP&L file a proposed unexecuted agreement with the Commission; (D) the eligible Transmission Service Customer has arranged for Ancillary Services necessary for the transaction; (E) each wholesale load for which wholesale Transmission Service is requested maintains a power factor equal to or greater than ERCOT requirements at each point of interconnection; (F) the Transmission Service Customer has constructed, maintains, and operates the facilities on its side of each point of interconnection that are necessary to reliably interconnect and deliver power from a resource to LP&L's transmission system and from LP&L's transmission system to the Transmission Service Customer's loads; and (G) to the extent the Transmission Service requires the addition of facilities or upgrades to the transmission system, such facilities have been placed in service. Application Procedures LP&L and the Transmission Service Customer shall comply with the application procedures for Transmission Services set forth in 16 TAC § 25.198, which shall govern such procedures. Construction of New Facilities Construction of new facilities needed to accommodate a request for Transmission Service shall be in accordance with the procedures set forth in 16 TAC § 25.198. Upon receipt of a request for Transmission Service, LP&L shall, if necessary, perform a System Security Study in accordance with 16 TAC § 25.198. Based on the results of the System Security Study, LP&L also may perform a Facilities Study, in accordance with 16 TAC § 25.198. An executed Facilities Study agreement with the Transmission Service Customer is required prior to LP&L performing a Facilities Study. In the event that existing facilities are inadequate to support the requested Transmission Service, LP&L may require the Transmission Service Customer to provide a contribution in aid of construction attributable to directly assigned facilities. Lubbock Power & Light wholesale Transmission Service Tariff LUBBOCK POWER & LIGHT TARIFF FOR ELECTRIC SERVICE WHOLESALE TRANSMISSION SERVICE Effective Date: Revised: N/A Load Shedding and Curtailment Sheet No. 1 Revision: 0 Page 3 of 6 Transmission Service hereunder shall be subject to, and LP&L and the Transmission Service Customer will comply with, the load shedding and curtailment procedures established under 16 TAC § 25.200. Any interruption shall be based on operational factors and shall not accord a higher priority to LP&L's retail and wholesale customers than to its customers taking Transmission Service. Service to all customers shall be restored as quickly as reasonably possible. Pricing for Transmission Service Within ERCOT' Charges for Transmission Service hereunder shall be in accordance with Texas Utility Code § 35.004(d). For Transmission Service, a Transmission Service Customer shall incur both an access charge, as set forth below, and loss compensation charges. Annual Access Fee—$0.22442 / kW of coincident peak demand determined in accordance with 16 TAC § 25.192. Pricing for Transmission Service for Exports from ERCOT Charges for Transmission Service for exports from ERCOT shall be in accordance with Texas Utility Code § 35.004(d) and 16 TAC § 25.192. Transmission Service Customers exporting power from ERCOT will be assessed an access charge based on the duration of the service requested. Charges t All charges stated in this Tariff are based upon Staffs proposed Matrix B filed in Docket No. 51612. Once approved 2020 4CP values are available, this Tariff will be updated as appropriate. Lubbock Power & Light wholesale Transmission Service Tariff LUBBOCK POWER & LIGHT TARIFF FOR ELECTRIC SERVICE WHOLESALE TRANSMISSION SERVICE Effective Date: Revised: N/A Sheet No. 1 Revision: 0 Page 4 of 6 for Transmission Service for exports from ERCOT shall be determined in accordance with 16 TAC § 25.192(e) and shall be calculated using the charges set forth below: Monthly rate (June -September) $0.05611 per kW Monthly rate (October -May) $0.01870 per kW Weekly rate (June -September) $0.01288 per kW Weekly rate (October -May) $0.00432 per kW Daily rate (June -September) $0.00184 per kW Daily rate (October -May) $0.00061 per kW Hourly rate (June -September) $0.00008 per kW Hourly rate (October --May) $0.00003 per kW The Transmission Service Customer scheduling the export of power over a DC tie is solely responsible to LP&L for payment of these transmission service charges. Charges for use of the ERCOT transmission system for export purposes on a monthly basis shall not exceed the annual charge for the transaction. Wholesale exports from ERCOT are subject to the satisfaction of applicable requirements necessary to provide export service. Exports from generating facilities that are located immediately adjacent to a tie -line facility where the energy delivered from the generating facility to the tie line is through a single substation, and that meet the criteria of the Oklaunion Exemption under the ERCOT protocols, shall not be subject to transmission service charges for exports of power out of the ERCOT region over DC ties. Losses Losses shall be calculated by the Independent System Operator (ISO) in accordance with the method set forth in the ERCOT Protocols. Reliability Guidelines To maintain reliability of the ERCOT transmission grid, LP&L shall operate its transmission system in accordance with ERCOT Protocols, ERCOT Operating Guides, NERC guidelines, and any other guidelines of the ISO that may apply to LP&L's transmission system. LP&L reserves the right, consistent with good utility practice and on a non-discriminatory basis, to interrupt Transmission Service without liability on LP&L's part for the purpose of making necessary adjustments to, changes in, or repairs to its lines, substations and other facilities, or where the Lubbock Power & Light Wholesale Transmission Service Tariff LUBBOCK POWER & LIGHT TARIFF FOR ELECTRIC SERVICE WHOLESALE TRANSMISSION SERVICE Effective Date: Revised: N/A Sheet No. I Revision: 0 Page 5 of 6 continuance of Transmission Service would endanger persons or property. In the event of any adverse condition or disturbance on LP&L's system or any other system directly or indirectly interconnected with LP&L's system, LP&L, consistent with Good Utility Practice, also may interrupt Transmission Service on a non-discriminatory basis in order to limit the extent or damage of the adverse condition or disturbance, to prevent damage to generating or transmission facilities, or to expedite restoration of service, without liability on LP&L's part. LP&L will give the Transmission Service Customer as much advance notice as is practicable in the event of such interruption, and shall restore service with due diligence. The Transmission Service Customer's failure to respond to established emergency load shedding and curtailment procedures to relieve emergencies on LP&L's transmission system may result in the Transmission Service Customer being deemed by LP&L to be in default and may result in the termination of Transmission Service. Payment Any charges due to LP&L under this rate schedule shall be billed in accordance with 16 TAC § 25.202. Customers shall make payment to LP&L in a manner consistent with the procedures and deadlines set forth in 16 TAC § 25.202. Any late payments by customers or customer defaults shall be handled in accordance with 16 TAC § 25.202. Agreement An agreement for Transmission Service containing terms and provisions consistent with 16 TAC §§ 25.191-.203 is required prior to commencement of such service. Such agreement will require approval of the City Council. Definitions Capitalized terms shall have the meanings set forth in 16 TAC § 25.5 and §§ 25.191-.203. Amendments to Rules In the event 16 TAC §§ 25.191-.203 are amended or if a new rule is adopted governing the subject matter of this tariff, this tariff shall, nevertheless, remain effective until the new tariff(s) filed pursuant to any such amendment(s) or such new rules are approved, unless the amendment(s) or new rules or an agreement of the parties provide otherwise. Lubbock Power & Light Wholesale Transmission Service Tariff