HomeMy WebLinkAboutOrd 1705 - electric utilities and franchise fees
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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_