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HomeMy WebLinkAboutOrd 1705 - electric utilities and franchise fees { ..-.. ( Ordinance -No. 1705 AN ORDINANCE RELA liNG TO ELECTRIC UTILITIES AND FRANCHISE FEES; AMENDING THE CODE OF ORDINANCES OF THE CITY OF WEST UNIVERSITY PLACE, TEXAS; AND CONTAINING FINDINGS AND PROVISIONS RELA liNG TO THE SUBJECT. WHEREAS, the City of West University PlaceJ Texas ('ICity") has granted a franchise (UFranchiseU) to Houston Lighting & Power Company, its successors and assigns (which is an "electric utility" or IItransmission and distribution utility'1 as mentioned below) to use the public rights-af-way to deliver electricity in the City; and WHEREAS, the Franchise provides that the City may collect a franchise fee fronl . the electric utility for use of the public rights-af-way in the City and the City has collected such a fee since the Franchise was entered into; and WHEREAS, Texas Utility Code S 33.008(a) provides that, "a municipality may impose on an electric utility f [or] transmission and distribution utility . . . that provides distribution service within the municipality a reasonable charge as specified in Subsection (b) for the use of a municipal street, alley, or public way to deliver electricity to a retail customer.lI; and WHEREAS, Texas Utility Code ~ 33.008(b) provides in part that 'li]f a municipality collected a charge or fee for a franchise to use a municipal street, alley, or public way before . . . [December 31, 2001], the mun icipa lity, after [December 31, 2001] . . . is entitled to collect from each electric utility, [or] transmission and distribution uti lity . . . that uses the municipalityJs streets, alleys, or public ways to provide distribution service a charge based on each kilowatt hour of electricity delivered by the utility to each retail customer whose consuming facility's point of delivery is located within the municipality's bou ndaries. u; and WHEREAS, Texas Utility Code S 33.008(b) further provides that U[t]he charge imposed shall be equal to the total electric franchise fee revenue due the municipality from electric utilities . . ~ for calendar year 1998 divided by the total kilowatt hours delivered during 1998 by the. . . electric utility. . . to retail customers whose consuming facilities' points of delivery were located with in the mu n icipality's bou ndaries. U ("KWH Charge"); and. - WHEREAS, 9 33.008(b) further provides n[t]he compensation a municipality may collect from each electric utility, [or] transmission and distribution utility z . . providing distribution service shall be equal to the charge per kilowatt hour determined for 1998 multiplied times the number of kilowatt hours delivered within the municipality.s boundaries.lI; and WHEREAS, the City Council finds and determines that the City did collect a franchise fee before December 31, 2001 and desires to impose and collect the charge authorized of Texas Utility Code S 33.008 from each electric utitity and transmission and distribution utility in thE;7 City; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WEST UNIVERSITY PLACE: Section 1. That the findings contained in the preamble of this Ordinance are determined to be true and correct and are hereby adopted. Section 2. The Code of Ordinances of the City of West University Place, Tex8E is hereby amended to add a new Section 23.003, which shall read as follows: Sec. 23.003. Charges on electric utilities. (a) Charge imposed. PUfSllant to Texas Utility Code S33~008(a) allcl S33.008(b)., tIle City ilnposes 011 each electric utility and eacll transmission alld distriblltiol1 utility., that provides distribution service witllin tIle City's boul1daries, a I(WH cllarge as alltllorized by Texas Utility Code 933.008~ SUCl1 cllarge s11all be paid qu.arterly as prescribed by tIle Director of Finilllce alld ill accordallce witll allY a}Jplica.ble frallch.i se ordinance~ The same per-KWH cllarge sIlall also apply, as a Inillinllull c11arge~ \vitb respect to eacll Cllstol11er l11al(illg arrallgelnellts witll a 1101}- francllisee 1111der tile state ~ ~~I "pilot" program for custonler-choice electricity, wllether before or after Janllary 1 ~ 2002. (b) Report DpOll paYlnent of tIle per l<ilowatt 110l1f cllarge, as autllorized b>..' tIle Texas Utility Code, 933.008 eac11 electric lltility and eacl1 translnissioll atld distribution lltility shall also file a repolt witll tIle City's Director of Fillllilce evidellcillg tIle l(ilowatt hours delivered within the City dllring the applicable period, al1d otller reasonable infoflnation as reqllested in writil1g by the Director of Fi.l1a11ce to verify t11e accuracy of that report. (c Misrepresentation. It shall .be l1111awfu.l for allY perSOll to 1010willgly l11ake a Inaterial misrepresentatioll of allY information required to be reported. under th is section. Section. 3. If any section, subsectionj sentence~ clause, phrase, or portion of this ordinance is for any reason held invalid or unconstitutional by any court or administrative agency of competent jurisdictionj such portion shall be deemed a separate, distinct, and independent provision and such holding shall not affect the validity of the remaining portions thereof. Section. 4. The City Council officially finds, determines and declares that ? sufficient written notice of the date, hour, place and subject of each meeting at WtllCh . ~ this Ordinance was discussed, considered or acted upon was given in the rllanner required by the Texat} Open Meetings Actt as amended, and that each such meetjn~ has been open to the public as required by law at all times during such discussion. consideration and action~ The City Council ratifies, approves and confirms such notices and the contents and posting thereof. Section. 5. This Ordinance shall take effect on the tenth day following publication as provided in the City Charter, with the KWH charge beginning to accrue as of 12:01 AM, January 1, 2002~ PASSED AND ADOPTED on first reading on 'p~.3 ,;;00 I Councilmembers Voting Aye: Councilmembers Voting No: Councilmembers Absent: PASSED AND ADOPTED on second reading on At'~ / 7 I ;x:;rJ / < Councilmembers Voting Aye: Councilmembers Voting No: Councilmembers Absent: Recommended: ~4 tJ_