HomeMy WebLinkAboutResolution - 2020-R0001 - Joint Application of Oncor Electric Delivery Company - 01_08_20Resolution No. 2020-R0001
Item No. 3.1
January 8, 2020
RESOLUTION NO. 2020-R0001
WHEREAS, the City of Lubbock acting by and through its municipally
owned electric utility, Lubbock Power & Light ("LP&L") has sought approval of
four Certificate of Convenience and Necessity ("CCN") applications from the
Public Utility Commission of Texas ("PUC");
WHEREAS, these CCNs are necessary for LP&L to integrate its Affected
Load into the Electric Reliability Council of Texas ("ERCOT"), which is required
under the PUC's Final Order in PUC Docket No. 47576, Application of the City
of Lubbock By and Through Lubbock Power & Light for Authority to Connect a
Portion of its System with the Electric Reliability Council of Texas, dated March
15,2018;
WHEREAS, on December 19, 2018, LP&L along with its joint applicant
Oncor Electric Delivery Company, LLC ("Oncor"),' filed the Joint Application
of Oncor Electric Delivery Company, LLC and City of Lubbock acting by and
through Lubbock Power & Light for a Certificate of Convenience and Necessity
for the Proposed Wadsworth to New Oliver to Farmland 345-kV Transmission
Line in Lubbock and Lynn Counties, Texas, and the Proposed Southeast to New
Oliver to Oliver 115-kV Transmission Line in Lubbock County, Texas (referred
to herein as the "Wadsworth to Farmland CCN") in PUC Docket No. 48909,
SOAH Docket No. 473-19-2405;
WHEREAS, LP&L participated in a mediation and hearing on July 15-16,
2019 in the Wadsworth to Farmland CCN;
WHEREAS, the parties attending the mediation and hearing on July 15-16,
2019, reached an agreement on an Unopposed Hearing Route (herein so called);
WHEREAS, the Unopposed Hearing Route does not cross the City of
Lubbock's planned Jim Bertram Lake 7 Development ("Lake 7");
WHEREAS, approximately 56 parties reached consensus on the Unopposed
Hearing Route;
WHEREAS, the PUC indicated that it would not approve the Unopposed
Hearing Route because of increased costs and suggested remand to SOAH might
be most appropriate, which would result in significant delay and expense;
WHEREAS, Lake 7 is an important development by the City of Lubbock
for its residents;
' The original Joint Applicant with LP&L was Sharyland Utilities, L.P. ("Sharyland").
Subsequent to the filing of the Application, however, Sharyland transferred its rights in the Project
to Oncor through the closing of transactions approved by the PUC in Docket No. 48929. As a result,
Oncor has stepped into Sharyland's shoes with respect to all four CCN proceedings.
WHEREAS, the Texas Legislature designated Lake 7 as a Unique Reservoir
Site;
WHEREAS, Lake 7 is an integral part of the City of Lubbock's approved
water supply strategy. Specifically, Lake 7 is a water supply strategy in the 2016
Region O Water Plan, the State of Texas Water Plan, and is incorporated in the
City of Lubbock's 2018 Strategic Water Supply Plan;
WHEREAS, Lake 7 is recognized by the Texas Water Development Board
and the Texas Commission on Environmental Quality as an important future
water supply for the City of Lubbock;
WHEREAS, the permit for Lake 7 (Water Rights Permit # 5921) is under
review at TCEQ, and the City of Lubbock expects the issuance of a draft permit
by early 2020;
WHEREAS, the construction and use of Lake 7 as a future water supply of
the City of Lubbock is included in the City of Lubbock's Water Plan;
WHEREAS, Lake 7 is unusual in the fact that it is almost exclusively
designed to capture developed and reclaimed water owned by the City of
Lubbock;
WHEREAS, the use of reclaimed water for a future drinking water supply
is critical in Lubbock's semi -arid region and will provide the City of Lubbock
with a diversified, drought resistant, renewable, and sustainable long-term source
of water;
WHEREAS, the City of Lubbock fully intends to construct and is the
developer for Lake 7;
WHEREAS, Lake 7 is important to the community values of the region, is
a critical water supply resource, will have aesthetic value, and will be surrounded
by recreational and park areas;
WHEREAS, the City of Lubbock desires that the PUC adopt the Unopposed
Hearing Route and will contribute toward the increased costs of that particular
route; NOW, THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT, the City of Lubbock finds that Lake 7 is a Unique Reservoir Site
and a vital component of the City's strategic water supply;
BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
THAT, the City of Lubbock, as the developer of Lake 7, agrees to contribute
a total of up to $2.4 million (to be shared with Lubbock Power & Light) toward
the construction of the transmission line in the Wadsworth to Farmland CCN (the
"Contribution"), to reflect the incremental costs associated with avoiding the City
of Lubbock's Lake 7 development.
BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
THAT, by Resolution of even date, the Electric Utility Board for Lubbock
Power & Light, the City of Lubbock's municipally owned electric utility, has
likewise resolved that it agrees to the Contribution.
BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
THAT all recitals provided in this Resolution are expressly adopted as
findings of the City Council.
Passed by the City Council this 8th day of January 2020.
Daniel M. Pope, Mayor
ATTEST:
Rebe ca Garza, City -Sec tar
APPROVED AS TO CONTENT:
/Z
Jarrett tkinson, City Manager
APPROVED AS TO FORM:
nn it�LP�Ltant G Assiseneral Counsel