HomeMy WebLinkAboutResolution - 2018-R0001 - Retail Competition For Electric Service - 01/11/2018 (2)Resolution No. 2018-R0001
Item No. 2.2
January 11, 2018
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 the Southwest Power Pool Regional Transmission
Organization ("SPP");
WHEREAS, the wholesale power contract (the "Total Requirements
Contract") wherein LP&L acquires its power is to expire May 31, 2019;
WHEREAS, LP&L has contracted for a portion of its power needs supplied
by the Total Requirements Contract after its expiration, through May of 2021,
said power to be delivered through SPP (the "Affected Load");
WHEREAS, LP&L contracted previously with Southwestern Public
Service for the period of time from and after May 31, 2019 to May 31, 2044 for
a portion of its power needs (the "Unaffected Load");
WHEREAS, LP&L filed before the Public Utility Commission of Texas
("PUC") its 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 ("ERCOT"), Docket Number 47576 (the "Application"), on or
about September 1, 2017;
WHEREAS, the Application seeks to integrate the Affected Load into
ERCOT;
WHEREAS, Texas law provides the opportunity for municipally owned
electric utilities to provide customer choice to its customers;
WHEREAS, in Texas, retail competition and customer choice are available
within ERCOT but are not available within SPP;
WHEREAS, the City Council of the City of Lubbock (the "City Council")
believes that customer choice and retail electric competition will benefit its
citizens and enhance growth and development in Lubbock;
WHEREAS, the City Council understands that customer choice is not a
viable alternative unless and until the Affected Load is interconnected to ERCOT;
WHEREAS, the City Council, as 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 now evidence its intent to provide customer choice regarding
the Affected Load, to be implemented at the earliest practicable time if the
Application is approved by the PUC; NOW, THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT, to the extent the City Council 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 expresses its intent to provide
customer choice as to the Affected Load, as contemplated by Chapter 40 of the
Texas Utilities Code.
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
conduct or prepare, or cause to be conducted or prepared, any and all necessary
or advisable plans, evaluations and any other relevant activities surrounding
customer choice allowed 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 City Council.
BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
THAT it is the intention of the City Council of the City of Lubbock to
provide customer choice as to the Affected Load upon its interconnection with
ERCOT and upon completion of the above -described due diligence activities,
such activities to identify and describe the feasibility and requirements of
providing such customer choice. Because the Affected Load is not now
interconnected to ERCOT, and to allow for such due diligence activities, the
evidence of intent resolved by the City Council of the City of Lubbock herein
shall not be construed as a resolution of the exercise of the discretion to provide
customer choice as to the Affected Load, as contemplated by Section 40.051 of
the Texas Utilities Code
Passed by the City Council this 1 lth day of January, 2018.
Daniel M. Pope, Mayor
ATTEST:
APPROVED AS TO CONTENT:
David McCalla, Director of Electric Utilities
APPROVED AS TO FORM:
Richard Casner, LP&L General Counsel