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HomeMy WebLinkAboutResolution - 2023-R0112 - Reliant Energy, Octopus Energy and TXU Energy as Default Retail Electric ProvidersResolution No. 2023-RO112 Item No. 6.6 February 28, 2023 RESOLUTION WHEREAS, Lubbock Power & Light is the municipally owned electric utility of the City of Lubbock ("LP&L"); WHEREAS, on February 15, 2022, by Resolution No. 2022-R0010, the Electric Utility Board of the City of Lubbock passed an irrevocable resolution pursuant to Texas Utilities Code, Chapter 40, to opt into retail competition, subject to certain conditions; WHEREAS, on February 22, 2022, by Resolution No. 2022-RO108, the City Council of the City of Lubbock passed an irrevocable resolution pursuant to Texas Utilities Code, Chapter 40, to opt into retail competition, subject to certain conditions; WHEREAS, by Resolution No. 2022-RO408 and Resolution No. EUB 2022- R0083, the City Council of the City of Lubbock, and the Electric Utility Board of the City of Lubbock, respectively, established the procedures and criteria for designating the Voluntary Retail Electric Providers and the Default Electric Retail Providers; WHEREAS, in its selection criteria, LP&L determined that a customer assigned to a Voluntary Retail Electric Provider will be provided a market -based, month -to - month product and will be able to select a Retail Electric Provider and switch away from a Voluntary Retail Electric Provider without penalty; WHEREAS, in its selection criteria, LP&L determined that a Default Retail Electric Provider would accept a large number of customer accounts due to a non- POLR event, and as such, will accept customer accounts without a designated, or chosen retail electric provider by the time the transition to the retail market is complete; WHEREAS, in its selection criteria, LP&L determined that a customer assigned to a Default Retail Electric Provider will be provided a market -based, month - to -month product and will be able to select a Retail Electric Provider and switch away from a Default Retail Electric Provider without penalty; WHEREAS, following such procedures and criteria, LP&L staff has made recommendations to the Electric Utility Board for the designation of the Voluntary Retail Electric Providers and Default Retail Electric Providers, and so recommends TXU Energy Retail Company LLC, Octopus Energy, LLC, and Reliant Energy Retail Services, LLC to serve as a Voluntary Retail Electric Providers and Default Retail Electric Providers, as applicable, for customers within LP&L's service territory as of the date of the initiation of customer choice; WHEREAS, by resolution dated February 21, 2023, the Electric Utility Board approved of such recommendation; and WHEREAS, LP&L has considered the submitted proposal by TXU Energy Retail Company LLC, Octopus Energy, LLC, and Reliant Energy Retail Services, LLC to serve as the Voluntary Retail Electric Providers and Default Retail Electric Providers for customers within LP&L's service territory as of the date of the initiation of customer choice; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Council of the City of Lubbock hereby designates TXU Energy Retail Company LLC, Octopus Energy, LLC, and Reliant Energy Retail Services, LLC to serve as Voluntary Retail Electric Providers for Lubbock Power & Light customers within Lubbock Power & Light's certificated area as of the date of the initiation of customer choice. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Council of the City of Lubbock hereby designates TXU Energy Retail Company LLC, Octopus Energy, LLC, and Reliant Energy Retail Services, LLC to serve as Default Retail Electric Providers for Lubbock Power & Light customers within Lubbock Power & Light's certificated area as of the date of the initiation of customer choice. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Director of Electric Utilities is hereby authorized and directed to execute those certain Initial Designation of and Agreement with Voluntary Retail Electric Providers and Default Retail Electric Providers, by and between the City of Lubbock, acting by and through Lubbock Power & Light, and each of TXU Energy Retail Company LLC, Octopus Energy, LLC, and Reliant Energy Retail Services, LLC, as attached to this resolution and any documents related thereto. Passed by the City Council this 28th day of February, 2023. APPROVED AS TO CONTENT: APPROVED AS TO FORM: �- i1jIff, LP&L General Counsel WHEREAS, Lubbock Power & Light is the municipally owned electric utility the City of Lubbock ("LP&L"); WHEREAS, on February 15, 2022, by Resolution No. 2022-R0010, the Electric Utility Board of the City of Lubbock passed an irrevocable resolution pursuant to Texas Utilities Code, Chapter 40, to opt into retail competition, subject to certain conditions; WHEREAS, on February 22, 2022, by Resolution No. 2022-R0108, the City Council of the City of Lubbock passed an irrevocable resolution pursuant to Texas Utilities Code, Chapter 40, to opt into retail competition, subject to certain conditions; WHEREAS, by Resolution No. 2022-R0408 and Resolution No. EUB 2022- R0083, the City Council of the City of Lubbock, and the Electric Utility Board of the City of Lubbock, respectively, established the procedures and criteria for designating the Voluntary Retail Electric Providers and the Default Electric Retail Providers; WHEREAS, in its selection criteria, LP&L determined that a customer assigned to a Voluntary Retail Electric Provider will be provided a market -based, month -to - month product and will be able to select a Retail Electric Provider and switch away from a Voluntary Retail Electric Provider without penalty; WHEREAS, in its selection criteria, LP&L determined that a Default Retail Electric Provider would accept a large number of customer accounts due to a non-POLR event, and as such, will accept customer accounts without a designated, or chosen retail electric provider by the time the transition to the retail market is complete; WHEREAS, in its selection criteria, LP&L determined that a customer assigned to a Default Retail Electric Provider will be provided a market -based, month - to -month product and will be able to select a Retail Electric Provider and switch away from a Default Retail Electric Provider without penalty; WHEREAS, following such procedures and criteria, LP&L staff has made recommendations to the Electric Utility Board for the designation of the Voluntary Retail Electric Providers and Default Retail Electric Providers, and so recommends TXU Energy Retail Company LLC, Octopus Energy, LLC, and Reliant Energy Retail Services, LLC to serve as a Voluntary Retail Electric Providers and Default Retail Electric Providers, as applicable, for customers within LP&L's service territory as of the date of the initiation of customer choice; and WHEREAS, LP&L has considered the submitted proposal by TXU Energy Retail Company LLC, Octopus Energy, LLC, and Reliant Energy Retail Services, LLC to serve as the Voluntary Retail Electric Providers and Default Retail Electric Providers for customers within LP&L's service territory as of the date of the initiation of customer choice; NOW THEREFORE: BE IT RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE CITY OF LUBBOCK: THAT the Electric Utility Board hereby designates TXU Energy Retail Company LLC, Octopus Energy, LLC, and Reliant Energy Retail Services, LLC to serve as Voluntary Retail Electric Providers for Lubbock Power & Light customers within Lubbock Power & Light's certificated area as of the date of the initiation of customer choice. BE IT FURTHER RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE CITY OF LUBBOCK: THAT the Electric Utility Board hereby designates TXU Energy Retail Company LLC, Octopus Energy, LLC, and Reliant Energy Retail Services, LLC to serve as Default Retail Electric Providers for Lubbock Power & Light customers within Lubbock Power & Light's certificated area as of the date of the initiation of customer choice. BE IT FURTHER RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE CITY OF LUBBOCK: THAT the Director of Electric Utilities is hereby authorized and directed to execute those certain Initial Designation of and Agreement with Voluntary Retail Electric Providers and Default Retail Electric Providers, by and between the City of Lubbock, acting by and through Lubbock Power & Light, and each of TXU Energy Retail Company LLC, Octopus Energy, LLC, and Reliant Energy Retail Services, LLC, as attached to this resolution and any documents related thereto. 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 shall not likewise approve and authorize the attached designations within sixty (60) days of the date hereof. Passed by the Electric Utility Board this 21 st day of February, 2023. G Stafford, Chai ATTEST: Eddie Schultz, Board Secret APPROVED AS TO CONTENT: ,,�2,�orvZ&0-2 J , Dir for of E-recopl0filities APPROVED AS TO FORM: Aq--� 5-),- �' Jend SdLiO LP&L General Counsel Resolution No. 2023-RO112 LP&L Initial Designation of and Agreement with Voluntary Retail Electric Providers and Default Retail Electric Providers This Initial Designation of and Agreement with Voluntary Retail Electric Providers and Default Retail Electric Providers is entered into and effective this 28th day of February, 2023, by and between the City of Lubbock, Texas, acting by and through Lubbock Power & Light ("LP&L") and TXU Energy Retail Company LLC ("TXU"). WITNESSETH WHEREAS, on February 15, 2022, by Resolution No. 2022-R0010, the Electric Utility Board of the City of Lubbock passed an irrevocable resolution pursuant to Texas Utilities Code, Chapter 40, to opt into retail competition, subject to certain conditions; WHEREAS, on February 22, 2022, by Resolution No. 2022-R0108, the City Council of the City of Lubbock passed an irrevocable resolution pursuant to Texas Utilities Code, Chapter 40, to opt into retail competition, subject to certain conditions; WHEREAS, by Resolution No. 2022-R0408 and Resolution No. EUB 2022-R0083, the City Council of the City of Lubbock, and the Electric Utility Board of the City of Lubbock, respectively, established the procedures and criteria for designating the Voluntary Retail Electric Providers and the Default Electric Retail Providers; WHEREAS, in its selection criteria, LP&L determined that a customer assigned to a Voluntary Retail Electric Provider must be provided a market -based, month -to -month product and must be able to select a Retail Electric Provider and switch away from a Voluntary Retail Electric Provider without penalty; WHEREAS, in its selection criteria, LP&L determined that a Default Retail Electric Provider would accept a large number of customer accounts due to a non-POLR event, and as Initial Designation of and Agreement with Voluntary Retail Electric Provider And Default Retail Electric Provider such, will be assigned customer accounts that have not designated or chosen a retail electric provider at the time the transition to the retail market is complete; WHEREAS, in its selection criteria, LP&L determined that a customer assigned to a Default Retail Electric Provider must be provided a market -based, month -to -month product and must be able to select a Retail Electric Provider and switch away from a Default Retail Electric Provider without penalty; WHEREAS, following such procedures and criteria, LP&L staff has made recommendations to the Electric Utility Board for the designation of the Voluntary Retail Electric Providers and Default Retail Electric Providers, and recommends that TXU be designated to serve as a Voluntary Retail Electric Provider and Default Retail Electric Provider, as applicable, for customers within LP&L's service territory as of the date of the initiation of customer choice; WHEREAS, TXU has so agreed to serve as a Voluntary Retail Electric Provider and Default Retail Electric Provider, as applicable, for customers within LP&L's service territory as of the date of the initiation of customer choice; WHEREAS, TXU understands that it is one of multiple retail electric providers selected to serve in the capacity of a Voluntary Retail Electric Provider and Default Retail Electric Provider and TXU further understands that LP&L can guarantee no minimum amount of customers that may be assigned to TXU in its role as a Voluntary Retail Electric Provider or Default Retail Electric Provider; NOW THEREFORE, LP&L has considered the submitted proposal and hereby selects and designates TXU to serve as a Voluntary Retail Electric Provider and Default Retail Electric Provider, as applicable, for customers within LP&L's service territory as of the date of the initiation of customer choice. Initial Designation of and Agreement with Voluntary Retail Electric Provider And Default Retail Electric Provider In consideration for its designation as a Voluntary Retail Electric Provider and Default Retail Electric Provider, TXU agrees as follows: 1. Voluntary Retail Electric Provider ("VREP"): a. Provider agrees that it will serve as a VREP for all retail customer classes served by LP&L within the certificated service area of LP&L. TXU and LP&L agree that date is anticipated to be October 1, 2023, but the parties agree that LP&L shall provide TXU thirty days' notice prior to the initiation of customer choice, once the date is established by the City Council and the Electric Utility Board of the City of Lubbock. b. TXU agrees that, in its role as a VREP, it will provide LP&L customers with a market -based, month -to -month product and customers assigned to TXU will be able to select a Retail Electric Provider and switch away from TXU without penalty. TXU must use the same market -based, month -to -month product for all customers in a mass transition that are in the same class and Provider of Last Resort ("POLR") area. c. TXU agrees that it will serve as a VREP for a term beginning on the initiation of customer choice in LP&L's certificated area and continuing until LP&L provides notification that such designation is being terminated. Except as provided in paragraph 1(g), below, LP&L agrees that it will provide at least ninety (90) days' notice of termination of this designation. Should LP&L have the option to delegate the jurisdictional authority of the POLR assignment for LP&L's service area to the Public Utility Commission of Texas ("PUCT") and make such a delegation, TXU shall follow the applicable rules and procedures as set forth by the PUCT. Initial Designation of and Agreement with Voluntary Retail Electric Provider And Default Retail Electric Provider d. If, during the term of this agreement, TXU is unwilling, or unable to continue providing VREP service in the LP&L certificated area, TXU shall provide a minimum of 180 days' notice to LP&L of termination of this agreement. e. TXU agrees that, prior to providing service in LP&L's certificated area, and as a condition to this designation, TXU will execute Appendix A to the Tariff for Competitive Retailer Access applicable to Municipally Owned Utilities. f. TXU agrees that it will follow all rules of the PUCT for operation in LP&L's service territory, including all applicable customer protection rules, as they may be amended from time to time. g. Should LP&L find that TXU has failed to meet its obligations described herein, LP&L shall have the right to revoke the designation and designate additional VREPs based on the original or updated selection criteria. 2. Default Retail Electric Provider ("DREP") a. Provider agrees that it will serve as a DREP for all retail customer classes served by LP&L within the certificated service area of LP&L. TXU and LP&L agree that date is anticipated to be October 1, 2023, but the parties agree that LP&L shall provide TXU thirty days' notice prior to the initiation of customer choice, once the date is established by the City Council and the Electric Utility Board of the City of Lubbock. b. TXU agrees that, in its role as a DREP, it will provide LP&L customers with a market -based, month -to -month product and customers assigned to TXU will be able to select a Retail Electric Provider and switch away from TXU without penalty. Initial Designation of and Agreement with Voluntary Retail Electric Provider And Default Retail Electric Provider c. TXU agrees that it will serve as a DREP for a term beginning on the initiation of customer choice in LP&L's certificated area and continuing until all customers in LP&L's retail service area have been transitioned to the competitive market. TXU's responsibilities hereunder to provide a market -based, month -to -month product, with no penalties for customer transitions, shall survive the designation and apply to all customers assigned to TXU as a DREP, and shall continue until all customers in the LP&L certified service area have independently selected contracts with their chosen or selected retail electric provider. TXU shall be allowed to market to and retain its assigned DREP customers. In any event, the term and obligations of a DREP will end upon ninety (90) days following the initiation of customer choice in LP&L's certificated area. Following this ninety -day period, any customers that have not chosen a REP, other than the DREP, will be deemed customers of TXU as a REP. d. If, prior to LP&L's transition to the retail market, TXU is unwilling, or unable to continue providing DREP service in the LP&L certificated area, TXU shall provide a minimum of 45 days' notice to LP&L of termination of this designation. e. TXU agrees that, prior to providing service in LP&L's certificated area, and as a condition to this designation, TXU will execute Appendix A to the Tariff for Competitive Retailer Access applicable to Municipally Owned Utilities. f. TXU agrees that it will follow all rules of the PUCT for operation in LP&L's service territory, including all applicable customer protection rules, as they may be amended from time to time. Initial Designation of and Agreement with Voluntary Retail Electric Provider And Default Retail Electric Provider g. Should LP&L find that TXU has failed to meet its obligations described herein, LP&L shall have the right to revoke the designation. IN WITNESS WHEREOF, the parties accept and agree to this binding designation by their duly authorized representatives effective as of the date first written above. City of Lubbock, acting by and through Lubbock Power & Light APPROVED AS TO Utilities APPROVED AS TO FORM: Jet Sm th LP&L General Counsel Title: S✓ [' t GCo Initial Designation of and Agreement with Voluntary Retail Electric Provider And Default Retail Electric Provider Resolution No. 2023-R0112 LP&L Initial Designation of and Agreement with Voluntary Retail Electric Providers and Default Retail Electric Providers This Initial Designation of and Agreement with Voluntary Retail Electric Providers and Default Retail Electric Providers is entered into and effective this 28th day of February, 2023, by and between the City of Lubbock, Texas, acting by and through Lubbock Power & Light ("LP&L") and Octopus Energy, LLC ("Octopus"). WITNESSETH WHEREAS, on February 15, 2022, by Resolution No. 2022-R0010, the Electric Utility Board of the City of Lubbock passed an irrevocable resolution pursuant to Texas Utilities Code, Chapter 40, to opt into retail competition, subject to certain conditions; WHEREAS, on February 22, 2022, by Resolution No. 2022-R0108, the City Council of the City of Lubbock passed an irrevocable resolution pursuant to Texas Utilities Code, Chapter 40, to opt into retail competition, subject to certain conditions; WHEREAS, by Resolution No. 2022-R0408 and Resolution No. EUB 2022-R0083, the City Council of the City of Lubbock, and the Electric Utility Board of the City of Lubbock, respectively, established the procedures and criteria for designating the Voluntary Retail Electric Providers and the Default Electric Retail Providers; WHEREAS, in its selection criteria, LP&L determined that a customer assigned to a Voluntary Retail Electric Provider must be provided a market -based, month -to -month product and must be able to select a Retail Electric Provider and switch away from a Voluntary Retail Electric Provider without penalty; WHEREAS, in its selection criteria, LP&L determined that a Default Retail Electric Provider would accept a large number of customer accounts due to a non-POLR event, and as Initial Designation of and Agreement with Voluntary Retail Electric Provider And Default Retail Electric Provider such, will be assigned customer accounts that have not designated or chosen a retail electric provider at the time the transition to the retail market is complete; WHEREAS, in its selection criteria, LP&L determined that a customer assigned to a Default Retail Electric Provider must be provided a market -based, month -to -month product and must be able to select a Retail Electric Provider and switch away from a Default Retail Electric Provider without penalty; WHEREAS, following such procedures and criteria, LP&L staff has made recommendations to the Electric Utility Board for the designation of the Voluntary Retail Electric Providers and Default Retail Electric Providers, and recommends that Octopus be designated to serve as a Voluntary Retail Electric Provider and Default Retail Electric Provider, as applicable, for customers within LP&L's service territory as of the date of the initiation of customer choice; WHEREAS, Octopus has so agreed to serve as a Voluntary Retail Electric Provider and Default Retail Electric Provider, as applicable, for customers within LP&L's service territory as of the date of the initiation of customer choice; WHEREAS, Octopus understands that it is one of multiple retail electric providers selected to serve in the capacity of a Voluntary Retail Electric Provider and Default Retail Electric Provider and Octopus further understands that LP&L can guarantee no minimum amount of customers that may be assigned to Octopus in its role as a Voluntary Retail Electric Provider or Default Retail Electric Provider; NOW THEREFORE, LP&L has considered the submitted proposal and hereby selects and designates Octopus to serve as a Voluntary Retail Electric Provider and Default Retail Electric Provider, as applicable, for customers within LP&L's service territory as of the date of the initiation of customer choice. Initial Designation of and Agreement with Voluntary Retail Electric Provider And Default Retail Electric Provider In consideration for its designation as a Voluntary Retail Electric Provider and Default Retail Electric Provider, Octopus agrees as follows: 1. Voluntary Retail Electric Provider ("VREP"): a. Provider agrees that it will serve as a VREP for all retail customer classes served by LP&L within the certificated service area of LP&L. Octopus and LP&L agree that date is anticipated to be October 1, 2023, but the parties agree that LP&L shall provide Octopus thirty days' notice prior to the initiation of customer choice, once the date is established by the City Council and the Electric Utility Board of the City of Lubbock. b. Octopus agrees that, in its role as a VREP, it will provide LP&L customers with a market -based, month -to -month product and customers assigned to Octopus will be able to select a Retail Electric Provider and switch away from Octopus without penalty. Octopus must use the same market -based, month -to -month product for all customers in a mass transition that are in the same class and Provider of Last Resort ("POLR") area. c. Octopus agrees that it will serve as a VREP for a term beginning on the initiation of customer choice in LP&L's certificated area and continuing until LP&L provides notification that such designation is being terminated. Except as provided in paragraph 1(g), below, LP&L agrees that it will provide at least ninety (90) days' notice of termination of this designation. Should LP&L have the option to delegate the jurisdictional authority of the POLR assignment for LP&L's service area to the Public Utility Commission of Texas ("PUCT") and make such a delegation, Octopus shall follow the applicable rules and procedures as set forth by the PUCT. Initial Designation of and Agreement with Voluntary Retail Electric Provider And Default Retail Electric Provider d. If, during the term of this agreement, Octopus is unwilling, or unable to continue providing VREP service in the LP&L certificated area, Octopus shall provide a minimum of 180 days' notice to LP&L of termination of this agreement. e. Octopus agrees that, prior to providing service in LP&L's certificated area, and as a condition to this designation, Octopus will execute Appendix A to the Tariff for Competitive Retailer Access applicable to Municipally Owned Utilities. f. Octopus agrees that it will follow all rules of the PUCT for operation in LP&L's service territory, including all applicable customer protection rules, as they may be amended from time to time. g. Should LP&L find that Octopus has failed to meet its obligations described herein, LP&L shall have the right to revoke the designation and designate additional VREPs based on the original or updated selection criteria. 2. Default Retail Electric Provider ("DREP") a. Provider agrees that it will serve as a DREP for all retail customer classes served by LP&L within the certificated service area of LP&L. Octopus and LP&L agree that date is anticipated to be October 1, 2023, but the parties agree that LP&L shall provide Octopus thirty days' notice prior to the initiation of customer choice, once the date is established by the City Council and the Electric Utility Board of the City of Lubbock. b. Octopus agrees that, in its role as a DREP, it will provide LP&L customers with a market -based, month -to -month product and customers assigned to Octopus will be able to select a Retail Electric Provider and switch away from Octopus without penalty. Initial Designation of and Agreement with Voluntary Retail Electric Provider And Default Retail Electric Provider c. Octopus agrees that it will serve as a DREP for a term beginning on the initiation of customer choice in LP&L's certificated area and continuing until all customers in LP&L's retail service area have been transitioned to the competitive market. Octopus's responsibilities hereunder to provide a market -based, month -to -month product, with no penalties for customer transitions, shall survive the designation and apply to all customers assigned to Octopus as a DREP, and shall continue until all customers in the LP&L certified service area have independently selected contracts with their chosen or selected retail electric provider. Octopus shall be allowed to market to and retain its assigned DREP customers. In any event, the term and obligations of a DREP will end upon ninety (90) days following the initiation of customer choice in LP&L's certificated area. Following this ninety - day period, any customers that have not chosen a REP, other than the DREP, will be deemed customers of Octopus as a REP. d. If, prior to LP&L's transition to the retail market, Octopus is unwilling, or unable to continue providing DREP service in the LP&L certificated area, Octopus shall provide a minimum of 45 days' notice to LP&L of termination of this designation. e. Octopus agrees that, prior to providing service in LP&L's certificated area, and as a condition to this designation, Octopus will execute Appendix A to the Tariff for Competitive Retailer Access applicable to Municipally Owned Utilities. f. Octopus agrees that it will follow all rules of the PUCT for operation in LP&L's service territory, including all applicable customer protection rules, as they may be amended from time to time. Initial Designation of and Agreement with Voluntary Retail Electric Provider And Default Retail Electric Provider g. Should LP&L find that Octopus has failed to meet its obligations described herein, LP&L shall have the right to revoke the designation. IN WITNESS WHEREOF, the parties accept and agree to this binding designation by their duly authorized representatives effective as of the date first written above. APPROVED AS TO CONTENT: -1� 10�vxer�l Joel , di —of Electric r s APPROVED AS TO FORM: 4e:S rtLP&L General Counsel City of Lubbock, acting by and through Lubbock Power & Light Joel Ivy, irector of Electric hies Octopus Energ/k-,—/ y,LLC By: ez-- Name: Michael Lee Title: CEO Initial Designation of and Agreement with Voluntary Retail Electric Provider And Default Retail Electric Provider Resolution No. 2023-R0112 LP&L Initial Designation of and Agreement with Voluntary Retail Electric Providers and Default Retail Electric Providers This Initial Designation of and Agreement with Voluntary Retail Electric Providers and Default Retail Electric Providers is entered into and effective this 28th day of February, 2023, by and between the City of Lubbock, Texas, acting by and through Lubbock Power & Light ("LP&L") and Reliant Energy Retail Services, LLC ("Reliant"). WITNESSETH WHEREAS, on February 15, 2022, by Resolution No. 2022-R0010, the Electric Utility Board of the City of Lubbock passed an irrevocable resolution pursuant to Texas Utilities Code, Chapter 40, to opt into retail competition, subject to certain conditions; WHEREAS, on February 22, 2022, by Resolution No. 2022-R0108, the City Council of the City of Lubbock passed an irrevocable resolution pursuant to Texas Utilities Code, Chapter 40, to opt into retail competition, subject to certain conditions; WHEREAS, by Resolution No. 2022-R0408 and Resolution No. EUB 2022-R0083, the City Council of the City of Lubbock, and the Electric Utility Board of the City of Lubbock, respectively, established the procedures and criteria for designating the Voluntary Retail Electric Providers and the Default Electric Retail Providers; WHEREAS, in its selection criteria, LP&L determined that a customer assigned to a Voluntary Retail Electric Provider must be provided a market -based, month -to -month product and must be able to select a Retail Electric Provider and switch away from a Voluntary Retail Electric Provider without penalty; WHEREAS, in its selection criteria, LP&L determined that a Default Retail Electric Provider would accept a large number of customer accounts due to a non-POLR event, and as Initial Designation of and Agreement with Voluntary Retail Electric Provider And Default Retail Electric Provider such, will be assigned customer accounts that have not designated or chosen a retail electric provider at the time the transition to the retail market is complete; WHEREAS, in its selection criteria, LP&L determined that a customer assigned to a Default Retail Electric Provider must be provided a market -based, month -to -month product and must be able to select a Retail Electric Provider and switch away from a Default Retail Electric Provider without penalty; WHEREAS, following such procedures and criteria, LP&L staff has made recommendations to the Electric Utility Board for the designation of the Voluntary Retail Electric Providers and Default Retail Electric Providers, and recommends that Reliant be designated to serve as a Voluntary Retail Electric Provider and Default Retail Electric Provider, as applicable, for customers within LP&L's service territory as of the date of the initiation of customer choice; WHEREAS, Reliant has so agreed to serve as a Voluntary Retail Electric Provider and Default Retail Electric Provider, as applicable, for customers within LP&L's service territory as of the date of the initiation of customer choice; WHEREAS, Reliant understands that it is one of multiple retail electric providers selected to serve in the capacity of a Voluntary Retail Electric Provider and Default Retail Electric Provider and Reliant further understands that LP&L can guarantee no minimum amount of customers that may be assigned to Reliant in its role as a Voluntary Retail Electric Provider or Default Retail Electric Provider; NOW THEREFORE, LP&L has considered the submitted proposal and hereby selects and designates Reliant to serve as a Voluntary Retail Electric Provider and Default Retail Electric Provider, as applicable, for customers within LP&L's service territory as of the date of the initiation of customer choice. Initial Designation of and Agreement with Voluntary Retail Electric Provider And Default Retail Electric Provider In consideration for its designation as a Voluntary Retail Electric Provider and Default Retail Electric Provider, Reliant agrees as follows: 1. Voluntary Retail Electric Provider ("VREP"): a. Provider agrees that it will serve as a VREP for all retail customer classes served by LP&L within the certificated service area of LP&L. Reliant and LP&L agree that date is anticipated to be October 1, 2023, but the parties agree that LP&L shall provide Reliant thirty days' notice prior to the initiation of customer choice, once the date is established by the City Council and the Electric Utility Board of the City of Lubbock. b. Reliant agrees that, in its role as a VREP, it will provide LP&L customers with a market -based, month -to -month product and customers assigned to Reliant will be able to select a Retail Electric Provider and switch away from Reliant without penalty. Reliant must use the same market -based, month -to -month product for all customers in a mass transition that are in the same class and Provider of Last Resort ("POLR") area. c. Reliant agrees that it will serve as a VREP for a term beginning on the initiation of customer choice in LP&L's certificated area and continuing until LP&L provides notification that such designation is being terminated. Except as provided in paragraph 1(g), below, LP&L agrees that it will provide at least ninety (90) days' notice of termination of this designation. Should LP&L have the option to delegate the jurisdictional authority of the POLR assignment for LP&L's service area to the Public Utility Commission of Texas ("PUCT") and make such a delegation, Reliant shall follow the applicable rules and procedures as set forth by the PUCT. Initial Designation of and Agreement with Voluntary Retail Electric Provider And Default Retail Electric Provider d. If, during the term of this agreement, Reliant is unwilling, or unable to continue providing VREP service in the LP&L certificated area, Reliant shall provide a minimum of 180 days' notice to LP&L of termination of this agreement. e. Reliant agrees that, prior to providing service in LP&L's certificated area, and as a condition to this designation, Reliant will execute Appendix A to the Tariff for Competitive Retailer Access applicable to Municipally Owned Utilities. f. Reliant agrees that it will follow all rules of the PUCT for operation in LP&L's service territory, including all applicable customer protection rules, as they may be amended from time to time. g. Should LP&L find that Reliant has failed to meet its obligations described herein, LP&L shall have the right to revoke the designation and designate additional VREPs based on the original or updated selection criteria. 2. Default Retail Electric Provider ("DREP") a. Provider agrees that it will serve as a DREP for all retail customer classes served by LP&L within the certificated service area of LP&L. Reliant and LP&L agree that date is anticipated to be October 1, 2023, but the parties agree that LP&L shall provide Reliant thirty days' notice prior to the initiation of customer choice, once the date is established by the City Council and the Electric Utility Board of the City of Lubbock. b. Reliant agrees that, in its role as a DREP, it will provide LP&L customers with a market -based, month -to -month product and customers assigned to Reliant will be able to select a Retail Electric Provider and switch away from Reliant without penalty. Initial Designation of and Agreement with Voluntary Retail Electric Provider And Default Retail Electric Provider c. Reliant agrees that it will serve as a DREP for a term beginning on the initiation of customer choice in LP&L's certificated area and continuing until all customers in LP&L's retail service area have been transitioned to the competitive market. Reliant's responsibilities hereunder to provide a market -based, month -to -month product, with no penalties for customer transitions, shall survive the designation and apply to all customers assigned to Reliant as a DREP, and shall continue until all customers in the LP&L certified service area have independently selected contracts with their chosen or selected retail electric provider. Reliant shall be allowed to market to and retain its assigned DREP customers. In any event, the term and obligations of a DREP will end upon ninety (90) days following the initiation of customer choice in LP&L's certificated area. Following this ninety - day period, any customers that have not chosen a REP, other than the DREP, will be deemed customers of Reliant as a REP. d. If, prior to LP&L's transition to the retail market, Reliant is unwilling, or unable to continue providing DREP service in the LP&L certificated area, Reliant shall provide a minimum of 45 days' notice to LP&L of termination of this designation. e. Reliant agrees that, prior to providing service in LP&L's certificated area, and as a condition to this designation, Reliant will execute Appendix A to the Tariff for Competitive Retailer Access applicable to Municipally Owned Utilities. f. Reliant agrees that it will follow all rules of the PUCT for operation in LP&L's service territory, including all applicable customer protection rules, as they may be amended from time to time. Initial Designation of and Agreement with Voluntary Retail Electric Provider And Default Retail Electric Provider g. Should LP&L find that Reliant has failed to meet its obligations described herein, LP&L shall have the right to revoke the designation. IN WITNESS WHEREOF, the parties accept and agree to this binding designation by their duly authorized representatives effective as of the date first written above. City of Lubbock, acting by and through Lubbock Power & Light APPROVED AS TO Ivy APPROVED AS TO FORM: cvl'-� S-V� Jet Sm' , LP&L General Counsel Reliant Energy Retail Services, LLC By: � "!t 2 ,+ Name: Elizabeth Killinger Title: President Initial Designation of and Agreement with Voluntary Retail Electric Provider And Default Retail Electric Provider