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HomeMy WebLinkAboutResolution - 2022-R0108 - Opting into Competition for Retail Electric Service - LP&LResolution No. 2022-RO108 Item No. 8.5 February 22, 2022 RESOLUTION WHEREAS, the City of Lubbock and its municipally owned electric utility, Lubbock Power & Light ("LP&L") are currently served with wholesale power delivered through both the Electric Reliability Council of Texas ("ERCOT") and the Southwest Power Pool Regional Transmission Organization ("SPP"); WHEREAS, in Texas, retail competition and customer choice are available within ERCOT but are not available within SPP; WHEREAS, approximately seventy percent (70%) of LP&L's load is currently in ERCOT (the "Affected Load"); WHEREAS, LP&L has begun taking steps to move the remainder of its load, approximately thirty percent (30%), from SPP to ERCOT (the "Remaining Load"); WHEREAS, on or about October 29, 2010, LP&L purchased the majority of Southwestern Public Service Company's ("SPS") distribution assets located within the Lubbock city limits ("SPS Legacy System"); WHEREAS, LP&L is undertaking certain distribution projects to move LP&L customers on SPS's Legacy System over to LP&L's distribution system in preparation for the integration of the Remaining Load into ERCOT; WHEREAS, LP&L intends that it will be fully integrated with one hundred percent (100%) of its load in the ERCOT market by May 31, 2023 ("LP&L's Total Load"), subject to the completion of necessary capital improvement projects and regulatory approvals; WHEREAS, ERCOT has a robust market within which many retail electric providers ("REPs") participate, which allows customers to choose their own retail electric providers through the competitive market place; WHEREAS, Texas law provides the opportunity for municipally owned electric utilities to provide customer choice to its customers; WHEREAS, the municipal governing body or a body vested with the power to manage and operate a municipally owned utility has the discretion to decide when or if the municipally owned utility will provide customer choice; WHEREAS, Texas law provides that municipally owned utilities may choose to participate in customer choice at any time on or after January 1, 2002, by adoption of an appropriate resolution of the municipal governing body or a body vested with power to manage and operate the municipally owned utility; That the decision to initiate customer choice upon the conditions outlined herein is forever irrevocable and cannot be revoked, recalled, repealed, or altered in any way. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: The recitals and preambles of this resolution are hereby adopted as further findings of the City Council of the City of Lubbock. Passed by the City Council of the City of Lubbock this 22nd day of February, 2022. L"JI Daniel Pope, May r ATTEST: Beckj Garza, City Secret APPROVED AS TO CONTENT: David McCalla, Director of Electric Utilities APPROVED AS TO FORM: *Jeyjm4i, LP&L General Counsel WHEREAS, the decision to participate in customer choice by the adoption of a resolution is irrevocable; WHEREAS, Texas law provides that the metering function of a municipally owned utility that provides competition to customers may not be deemed competitive, and, at the option of the municipally owned utility, continue to be offered by the municipally owned utility as the sole provider; WHEREAS, the City Council of the City of Lubbock believes that customer choice and retail electric competition will benefit the citizens of Lubbock and enhance growth and development in Lubbock; WHEREAS, the City Council of the City of Lubbock understands that this Resolution is irrevocable; WHEREAS, the City Council of the City of Lubbock desires to adopt this irrevocable resolution to choose to participate in customer choice upon the occurrence of specified conditions, contained herein, which are required prerequisites for offering customer choice; WHEREAS, upon the initiation of customer choice, LP&L would continue to provide the metering function for customers within LP&L's certificated service area; WHEREAS, the City Council of the City of Lubbock, as a municipal governing body and a governing body vested with power to manage and operate LP&L (along with the Electric Utility Board of the City of Lubbock), wishes to offer customer choice to the ratepayers of LP&L through this irrevocable resolution, upon the conditions outlined herein; NOW, THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT, to the extent the City Council of the City of Lubbock possesses governance jurisdiction over LP&L, as prescribed by the City Charter and Ordinances of the City of Lubbock, including without limitation, Chapter 1, Article XII, Section 1 of the City Charter and Chapter 2, Article 2.03, Division 12 of the Code of Ordinances, the City Council of the City of Lubbock hereby irrevocably chooses to offer customer choice to the ratepayers of LP&L, as contemplated by Chapter 40 of the Texas Utilities Code, subject to the conditions outlined herein. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Director of Electric Utilities BE and is hereby DIRECTED to take all necessary steps to initiate customer choice for LP&L ratepayers, as permitted by Chapter 40 of the Texas Utilities Code, including without limitation, steps necessary to so implement customer choice, and to timely report same to the Electric Utility Board of the City of Lubbock. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT customer choice will commence when the following conditions have been met, and this irrevocable resolution is expressly subject to the occurrence of all of the following conditions: (1) LP&L's Total Load has been fully integrated into ERCOT for a minimum period of sixty (60) days. (2) ERCOT and/or the Public Utility Commission of Texas, or any other applicable regulatory body, approves the initiation of customer choice for LP&L and its customers, to the extent necessary or required. (3) 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. (4) LP&L has the necessary software in place that bills the retail electric providers and manages customer and meter related transactions and is fully operational and all necessary testing completed. (5) LP&L has its EDI Gateway, which consists of a communication channel with ERCOT and all other required parties, fully operational and all necessary testing completed. (6) LP&L has completed its distribution system cutover such that all distribution within LP&L's certificated retail service area is disconnected from the SPS Legacy System, and connected with LP&L's current distribution system. (7) The Electric Utility Board and the City Council of the City of Lubbock have determined that there are, and will continue to be, a sufficient number of retail electric providers, including a sufficient number of independent, unaffiliated retail electric providers within the ERCOT market and that are willing and able to provide service in Lubbock to adequately provide competitive customer choice for LP&L's certificated area. (8) LP&L has executed any and all necessary contracts with REPS who intend to serve LP&L's certificated area upon the initiation of customer choice. (9) LP&L has made any necessary filings with the PUC regarding its generation function, to the extent required under Texas Utilities Code § 40.55(a)(2) and rules promulgated thereunder. (10) To the extent desired by the governing bodies, the Electric Utility Board has recommended and the City Council of the City of Lubbock has approved an ordinance requiring the registration of REPs that are serving the City of Lubbock pursuant to Texas Utilities Code § 39.358. (11) The Electric Utility Board and the City Council of the City of Lubbock have approved the Tariff for Competitive Retailer Access for the City of Lubbock, acting by and through Lubbock Power & Light, as provided in 16 Texas Administrative Code § 25.215 and Appendix V to the PUC Electric Substantive Rules, 16 Texas Administrative Code, Chapter 25, and further approved the rates for open access on distribution facilities under Texas Utilities Code § 40.058, and filed same with the Public Utility Commission of Texas no later than 90 days prior to the implementation of customer choice. (12) LP&L has taken all steps necessary to continue the metering function for its customers in its certificated service area, with such metering function not being competitive as provided in Texas Utilities Code §§ 40.053(b) and 40.057. (13) LP&L has substantially completed installing its advanced metering infrastructure for electric service in LP&L's certificated area. (14) The Electric Utility Board and the City Council have approved a transition to competition plan for customers in LP&L's certificated area that have not affirmatively selected their own retail electric provider prior to the date retail choice is initiated. (15) Any of the foregoing conditions may be waived by the Electric Utility Board and the City Council if and only to the extent such conditions are no longer legally required for the adoption of customer choice in the City of Lubbock. (16) The Electric Utility Board and the City Council of the City of Lubbock have, by resolution, confirmed that the foregoing conditions in this resolution have, in their sole judgment, been satisfied or exceeded and have established a date certain for when customer choice will begin in the City of Lubbock. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: That retail electric customer choice shall be initiated on the completion of all conditions provided herein. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: Resolution No. EUB 2022-R0010 RESOLUTION WHEREAS, the City of Lubbock and its municipally owned electric utility, Lubbock Power & Light ("LP&L") are currently served with wholesale power delivered through both the Electric Reliability Council of Texas C ERCOT") and the Southwest Power Pool Regional Transmission Organization ("SPP"); WHEREAS, in Texas, retail competition and customer choice are available within ERCOT but are not available within SPP; WHEREAS, approximately seventy percent (70%) of LP&L's load is currently in ERCOT (the "Affected Load"); WHEREAS, LP&L has begun taking steps to move the remainder of its load, approximately thirty percent (30%), from SPP to ERCOT (the "Remaining Load"); WHEREAS, on or about October 29, 2010, LP&L purchased the majority of Southwestern Public Service Company's ("SPS") distribution assets located within the Lubbock city limits ("SPS Legacy System"); WHEREAS, LP&L is undertaking certain distribution projects to move LP&L customers on SPS's Legacy System over to LP&L's distribution system in preparation for the integration of the Remaining Load into ERCOT; WHEREAS, LP&L intends that it will be fully integrated with one hundred percent (100%) of its load in the ERCOT market by May 31, 2023 ("LP&L's Total Load"), subject to the completion of necessary capital improvement projects and regulatory approvals; WHEREAS, ERCOT has a robust market within which many retail electric providers ("REPs") participate, which allows customers to choose their own retail electric providers through the competitive market place; WHEREAS, Texas law provides the opportunity for municipally owned electric utilities to provide customer choice to its customers; WHEREAS, the municipal governing body or a body vested with the power to manage and operate a municipally owned utility has the discretion to decide when or if the municipally owned utility will provide customer choice; WHEREAS, Texas law provides that municipally owned utilities may choose to participate in customer choice at any time on or after January 1, 2002, by adoption of an appropriate resolution of the municipal governing body or a body vested with power to manage and operate the municipally owned utility; WHEREAS, the decision to participate in customer choice by the adoption of a resolution is irrevocable; WHEREAS, Texas law provides that the metering function of a municipally owned utility that provides competition to customers may not be deemed competitive, and, at the option of the municipally owned utility, continue to be offered by the municipally owned utility as the sole provider; WHEREAS, the Electric Utility Board of the City of Lubbock (the "EUB" or "Electric Utility Board") believes that customer choice and retail electric competition will benefit the citizens of Lubbock and enhance growth and development in Lubbock; WHEREAS, the Electric Utility Board understands that this Resolution is irrevocable; WHEREAS, the EUB desires to adopt this irrevocable resolution to choose to participate in customer choice upon the occurrence of specified conditions, contained herein, which are required prerequisites for offering customer choice; WHEREAS, upon the initiation of customer choice, LP&L would continue to provide the metering function for customers within LP&L's certificated service area; WHEREAS, the EUB, as a governing body vested with power to manage and operate LP&L (along with the City Council of the City of Lubbock), wishes to offer customer choice to the ratepayers of LP&L through this irrevocable resolution, upon the conditions outlined herein; NOW, THEREFORE: BE IT RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE CITY OF LUBBOCK: THAT, to the extent the EUB possesses governance jurisdiction over LP&L, as prescribed by the City Charter and Ordinances of the City of Lubbock, including without limitation, Chapter 1, Article XII, Section 1 of the City Charter and Chapter 2, Article 2.03, Division 12 of the Code of Ordinances, the Electric Utility Board of the City of Lubbock hereby irrevocably chooses to offer customer choice to the ratepayers of LP&L, as contemplated by Chapter 40 of the Texas Utilities Code, subject to the conditions outlined herein. BE IT FURTHER RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE CITY OF LUBBOCK: THAT the Director of Electric Utilities BE and is hereby DIRECTED to take all necessary steps to initiate customer choice for LP&L ratepayers, as permitted by Chapter 40 of the Texas Utilities Code, including without limitation, steps necessary to so implement customer choice, and to timely report same to the Electric Utility Board of the City of Lubbock. BE IT FURTHER RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE CITY OF LUBBOCK: THAT customer choice will commence when the following conditions have been met, and this irrevocable resolution is expressly subject to the occurrence of all of the following conditions: (1) LP&L's Total Load has been fully integrated into ERCOT for a minimum period of sixty (60) days. (2) ERCOT and/or the Public Utility Commission of Texas, or any other applicable regulatory body, approves the initiation of customer choice for LP&L and its customers, to the extent necessary or required. (3) 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 ("POLW) 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. (4) LP&L has the necessary software in place that bills the retail electric providers and manages customer and meter related transactions and is fully operational and all necessary testing completed. (5) LP&L has its EDI Gateway, which consists of a communication channel with ERCOT and all other required parties, fully operational and all necessary testing completed. (6) LP&L has completed its distribution system cutover such that all distribution within LP&L's certificated retail service area is disconnected from the SPS Legacy System, and connected with LP&L's current distribution system. (7) The Electric Utility Board and the City Council of the City of Lubbock have determined that there are, and will continue to be, a sufficient number of retail electric providers, including a sufficient number of independent, unaffiliated retail electric providers within the ERCOT market and that are willing and able to provide service in Lubbock to adequately provide competitive customer choice for LP&L's certificated area. (8) LP&L has executed any and all necessary contracts with REPs who intend to serve LP&L's certificated area upon the initiation of customer choice. (9) LP&L has made any necessary filings with the PUC regarding its generation function, to the extent required under Texas Utilities Code § 40.55(a)(2) and rules promulgated thereunder. (10) To the extent desired by the governing bodies, the Electric Utility Board has recommended and the City Council of the City of Lubbock has approved an ordinance requiring the registration of REPS that are serving the City of Lubbock pursuant to Texas Utilities Code § 39.358. (11) The Electric Utility Board and the City Council of the City of Lubbock have approved the Tariff for Competitive Retailer Access for the City of Lubbock, acting by and through Lubbock Power & Light, as provided in 16 Texas Administrative Code § 25.215 and Appendix V to the PUC Electric Substantive Rules, 16 Texas Administrative Code, Chapter 25, and further approved the rates for open access on distribution facilities under Texas Utilities Code § 40.058, and filed same with the Public Utility Commission of Texas no later than 90 days prior to the implementation of customer choice. (12) LP&L has taken all steps necessary to continue the metering function for its customers in its certificated service area, with such metering function not being competitive as provided in Texas Utilities Code §§ 40.053(b) and 40.057. (13) LP&L has substantially completed installing its advanced metering infrastructure for electric service in LP&L's certificated area. (14) The Electric Utility Board and the City Council have approved a transition to competition plan for customers in LP&L's certificated area that have not affirmatively selected their own retail electric provider prior to the date retail choice is initiated. (15) Any of the foregoing conditions may be waived by the Electric Utility Board and the City Council if and only to the extent such conditions are no longer legally required for the adoption of customer choice in the City of Lubbock. (16) That this resolution shall be null and void and of no effect whatsoever unless the City Council shall, on or before February 28, 2022, have likewise adopted an irrevocable resolution providing customer choice within LP&L's certificated retail service area with the same conditions as provided herein. (17) The Electric Utility Board and the City Council of the City of Lubbock have, by resolution, confirmed that the foregoing conditions in this resolution have, in their sole judgment, been satisfied or exceeded and have established a date certain for when customer choice will begin in the City of Lubbock. BE IT FURTHER RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE CITY OF LUBBOCK: That retail electric customer choice shall be initiated on the completion of all conditions provided herein. BE IT FURTHER RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE CITY OF LUBBOCK: That the decision to initiate customer choice upon the conditions outlined herein is forever irrevocable and cannot be revoked, recalled, repealed, or altered in any way. BE IT FURTHER RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE CITY OF LUBBOCK: The recitals and preambles of this resolution are hereby adopted as further findings of the Electric Utility Board. Passed by the Electric Utility Board this 15th day of February, 2022. Dan Odom, Chairman ATTEST: n Stafford, Board SecOVy APPROVED AS TO CONTENT: avid McCalla, Director of Electric Utilities APPROVED AS TO FORM: J St , LP&L General Counsel