HomeMy WebLinkAboutResolution - 2022-R0454 - Connect to ERCOT and Settlement Agreement PUC Docket 53529Resolution No. 2022-R0454
Item No. 5.10
November 1, 2022
WHEREAS, approximately 30% of the City of Lubbock and its municipally
owned electric utility, Lubbock Power & Light ("LP&L") is currently served with
wholesale power delivered through the Southwest Power Pool Regional Transmission
Organization ("SPP");
WHEREAS, approximately 70% of LP&L's load has been integrated into the
Electric Reliability Council of Texas ("ERCOT");
WHEREAS, on or about May 27, 2021, the Electric Utility Board, by resolution
No. EUB 2021-R0038, determined that the customers of LP&L would be best served
by a migration of LP&L's remaining load (the "Remaining Load") from SPP to
ERCOT and authorized the Director of Electric Utilities to execute or cause to be
executed any and all pleadings and other filings to cause the migration of the
Remaining Load from SPP to ERCOT;
WHEREAS, on or about May 27, 2021, the Electric Utility Board and the City
Council of the City of Lubbock, by resolutions No. EUB 2021-R0039 and 2021-R0201,
respectively, approved that certain Settlement Agreement ("Settlement Agreement")
by and between Southwestern Public Service Company and LP&L, which stated that
the Settlement Agreement would not become effective unless and until it is approved
by the Public Utility Commission of Texas ("PUC"), and the parties agreed to request
approval of the Settlement Agreement as part of the migration of the Remaining Load
to ERCOT;
WHEREAS, on or about April 27, 2022, LP&L filed its Application of the City
of Lubbock, acting by and through Lubbock Power & Light, for Authority to Connect
the Remaining Portion of its Load with the Electric Reliability Council of Texas and
Tor approval of Settlement Agreement with the PUC to address both the Remaining
Load and the Settlement Agreement, which is proceeding under PUC Docket No.
53529 (the "PUC Proceeding");
WHEREAS, several parties have intervened in the PUC Proceeding, including
Southwestern Public Service, the Office of Public Utility Counsel, Texas Industrial
Energy Consumers, the Electric Reliability Council of Texas, Golden Spread Electric
Cooperative, Inc., and the Alliance for Retail Markets (collectively, "Intervenors");
WHEREAS, the Staff of the PUC is also participating in the PUC Proceeding
("PUC Staff');
WHEREAS, PUC Staff, Intervenors, and LP&L have and continue to engage in
good faith settlement negotiations that are ongoing related to the PUC Proceeding;
WHEREAS, the City Council of the City of Lubbock desires to authorize
LP&L's outside attorneys, Lloyd Gosselink Rochelle & Townsend P.C., to resolve,
settle, and compromise the PUC Proceedings upon the terms and conditions stated
below to expedite the approval of the PUC Proceeding; NOW, THEREFORE:
BE IT RESOLVED BY THE CITY COUNCILOF THE CITY OF LUBBOCK:
THAT LP&L's outside attorneys, Lloyd Gosselink Rochelle & Townsend P.C., are
authorized and directed to execute a Stipulation and/or Settlement (herein so called),
whether unanimous or non -unanimous, for and on behalf of the City of Lubbock, acting
by and through Lubbock Power & Light, settling and resolving the PUC Proceeding,
upon all of the following terms and conditions:
1. The Stipulation and/or Settlement permits the Remaining Load to migrate to
ERCOT no later than June 15, 2023, and no further payments or hold harmless
provisions are required of LP&L for this transition.
2. The Stipulation and/or Settlement states that the migration of the Remaining Load
into ERCOT is in the public interest.
3. The Stipulation and/or Settlement does not change, alter, or otherwise modify the
Settlement Agreement by and between Southwestern Public Service Company and
LP&L dated May 27, 2021.
4. The Stipulation and/or Settlement states that the Settlement Agreement by and
between Southwestern Public Service Company and LP&L dated May 27, 2021, is
reasonable and in the public interest.
5. The Stipulation and/or Settlement is approved in substance by the Director of
Electric Utilities and in form by the General Counsel of LP&L.
BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
THAT LP&L's outside attorneys, Lloyd Gosselink Rochelle & Townsend P.C., are
further authorized and directed to file or cause to be filed any such Stipulation and/or
Settlement with the PUC to resolve the PUC Proceeding in PUC Docket No. 53529.
Passed by the City Council of the City of Lubbock this 1 st day of November, 2022.
T NE, MAYOR
ATTEST:
Rebe4 Garza, Board Secr ary
APPROVED AS TO CONTENT:
Joe I , Director of Electri t' ities
APPROVED AS TO FORM:
Jt S it , LP&L General Counsel
Resolution No. EUB 2022-R0098
WHEREAS, approximately 30% of the City of Lubbock and its municipally
owned electric utility, Lubbock Power & Light ("LP&L") is currently served with
wholesale power delivered through the Southwest Power Pool Regional Transmission
Organization ("SPP");
WHEREAS, approximately 70% of LP&L's load has been integrated into the
Electric Reliability Council of Texas ("ERCOT");
WHEREAS, on or about May 27, 2021, the Electric Utility Board, by resolution
No. EUB 2021-R0038, determined that the customers of LP&L would be best served
by a migration of LP&L's remaining load (the "Remaining Load") from SPP to
ERCOT and authorized the Director of Electric Utilities to execute or cause to be
executed any and all pleadings and other filings to cause the migration of the
Remaining Load from SPP to ERCOT;
WHEREAS, on or about May 27, 2021, the Electric Utility Board and the City
Council of the City of Lubbock, by resolutions No. EUB 2021-R0039 and 2021-R0201,
respectively, approved that certain Settlement Agreement ("Settlement Agreement")
by and between Southwestern Public Service Company and LP&L, which stated that
the Settlement Agreement would not become effective unless and until it is approved
by the Public Utility Commission of Texas ("PUC"), and the parties agreed to request
approval of the Settlement Agreement as part of the migration of the Remaining Load
to ERCOT;
WHEREAS, on or about April 27, 2022, LP&L filed its Application of the City
of Lubbock, acting by and through Lubbock Power & Light, for Authority to Connect
the Remaining Portion of its Load with the Electric Reliability Council of Texas and
for approval of Settlement Agreement with the PUC to address both the Remaining
Load and the Settlement Agreement, which is proceeding under PUC Docket No.
53529 (the "PUC Proceeding");
WHEREAS, several parties have intervened in the PUC Proceeding, including
Southwestern Public Service, the Office of Public Utility Counsel, Texas Industrial
Energy Consumers, the Electric Reliability Council of Texas, Golden Spread Electric
Cooperative, Inc., and the Alliance for Retail Markets (collectively, "Intervenors");
WHEREAS, the Staff of the PUC is also participating in the PUC Proceeding
("PUC Staff");
WHEREAS, PUC Staff, Intervenors, and LP&L have and continue to engage in
good faith settlement negotiations that are ongoing related to the PUC Proceeding;
WHEREAS, the Electric Utility Board of the City of Lubbock desires to
authorize LP&L's outside attorneys, Lloyd Gosselink Rochelle & Townsend P.C., to
resolve, settle, and compromise the PUC Proceedings upon the terms and conditions
stated below to expedite the approval of the PUC Proceeding; NOW, THEREFORE:
BE IT RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE CITY OF
LUBBOCK:
THAT LP&L's outside attorneys, Lloyd Gosselink Rochelle & Townsend P.C., are
authorized and directed to execute a Stipulation and/or Settlement (herein so called),
whether unanimous or non -unanimous, for and on behalf of the City of Lubbock, acting
by and through Lubbock Power & Light, settling and resolving the PUC Proceeding,
upon all of the following terms and conditions:
1. The Stipulation and/or Settlement permits the Remaining Load to migrate to
ERCOT no later than June 15, 2023, and no further payments or hold harmless
provisions are required of LP&L for this transition.
2. The Stipulation and/or Settlement states that the migration of the Remaining Load
into ERCOT is in the public interest.
3. The Stipulation and/or Settlement does not change, alter, or otherwise modify the
Settlement Agreement by and between Southwestern Public Service Company and
LP&L dated May 27, 2021.
4. The Stipulation and/or Settlement states that the Settlement Agreement by and
between Southwestern Public Service Company and LP&L dated May 27, 2021, is
reasonable and in the public interest.
5. The Stipulation and/or Settlement is approved in substance by the Director of
Electric Utilities and in form by the General Counsel of LP&L.
BE IT FURTHER RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE
CITY OF LUBBOCK:
THAT LP&L's outside attorneys, Lloyd Gosselink Rochelle & Townsend P.C., are
further authorized and directed to file or cause to be filed any such Stipulation and/or
Settlement with the PUC to resolve the PUC Proceeding in PUC Docket No. 53529.
BE IT FURTHER RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE
CITY OF LUBBOCK:
THAT this resolution shall be null and void if the City Council of the City of Lubbock
does not approve a similar resolution outlining the parameters described above within
sixty (60) days of this resolution.
Passed by the Electric Utility Board this 18th day of October, 2022.
f
Dan Odom, Chairman
ATTEST:
fford, Board
APPROVED AS TO CONTENT:
/1.12Z z
JZ) Z.�
Joel-,ffirector of Electri v/11ities
APPROVED AS TO FORM:
t
Je S t , LP&L General Counsel