HomeMy WebLinkAboutAgenda CC 04.25.2005 WorkshopNotice of Meeting of the
Governing Body of the
City of Georgetown, Texas
Monday, April 25, 2005
The Georgetown City Council will meet on Monday, April 25, 2005 at 04:00:00 PM at City Council
Chambers, at the northeast corner of Seventh and Main Streets, Georgetown, Texas.
If you need accommodations for a disability, please notify the city in advance.
Policy Development/Review Workshop - Call to order at 04:00 PM
A Annexation Policy and Issues Review and Direction to Staff -- Ed Polasek, Chief Long -Range Planner;
Bobby Ray, Interim Director of Community Development; and Paul Brandenburg, City Manager
Presentation regarding Conservation Subdivisions and Direction to staff - Bobby Ray, Interim Director of
Planning & Development Services
Executive Session
In compliance with the Open Meetings Act, Chapter 551, Government Code,
Vernon's Texas Codes, Annotated, the items listed below will be discussed in
closed session and are subject to action in the regular session that follows.
C Sec.551.071: Consultation with Attorney
- Pending or Threatened Litigation
- Legal Advice Regarding Agenda Items and other Matters
D Sec.551.072 Deliberation on Real Property
- Discussion and possible action concerning the purchase of right of way and easements for improvements to SH29
F Sec.551.086 Public Power Utility Competitive Matters
- Council consideration and possible action to approve a negotiated settlement with TXU for transition charges as related
to SB7
E Sec.551.087: Deliberations Regarding Economic Development Negotiations
- Discussion or deliberation regarding commercial or financial information that the City has received from a business
prospect that the City seeks to have locate, stay, or expand in or near the territory of the City and with which the City is
conducting economic development negotiations
- Potential abatements and incentives for prospective downtown development projects
Certificate of Posting
I, Sandra Lee, City Secretary for the City of Georgetown, Texas, do hereby certify that this Notice of
Meeting was posted at City Hall, 113 E. 8th Street, a place readily accessible to the general public at all
times, on the day of , 2005, at , and remained so posted for at
least 72 continuous hours preceding the scheduled time of said meeting.
Sandra Lee, City Secretary
City Council Agenda/April 25, 2005
Page 1 of 1 Page
Council Meeting Date: April 25, 2005 Item No.
Executive Session
AGENDA ITEM COVER SHEET
SUBJECT:
Council consideration and possible action to approve a negotiated settlement
with TXU for transition charges as related to SB7.
ITEM SUMMARY:
This agenda item updates the council on the status of a complaint filed by
Oncor (TXU) in May, 2003 against all the municipally owned utilities and
electric cooperatives that have dually certificated areas with TXU within the
state of Texas. The complaint deals with billing and collection of Transition
Charges from former retail customers of TXU who switch service to a municipally
owned utility or an electric cooperative since May 1999.
While there was never a dispute over TXU's right to collect Transition
Charges from customers who switch service in dually certificated areas, there
were many questions about the mechanics of billing and collecting Transition
Charges from these former customers that needed to be negotiated. While only a
few municipally owned utilities and cooperatives actually have former TXU
customers on their systems, the complaint names all the systems within the State
of Texas with the potential of switching over a TXU customer in a dually
certificated area. Georgetown Utility System is one of the systems with
customers who have switched from TXU to GUS since 1999.
SPECIAL CONSIDERATIONS:
The City of Georgetown has the option to either approve the settlement or
contest it before the Public Utility Commission of Texas. Due to the small amount
of TC charges that are involved and that this agreement has been negotiated over a
two year time period on behalf of all Public Power entities that have dual area's
with TXU and at no cost for the City of Georgetown, staff requests GUS Board
recommendation to council for approval.
FINANCIAL IMPACT:
At this time the exact cost is unknown as TXU has not notified the City of
Georgetown of any customer that will fall into this settlement. For any residential
customer the agreement calls for the amount to be equal between account setup and
the actual TC charges. For a commercial account it is estimated to amount to about
$6 per month with and account setup fee of $4.50 for a net amount remitted to TXU
of $1.50/month.
GUS BOARD RECOMMENDATION:
GUS Board Recommended at their April 191" meeting 7-0.
STAFF RECOMMENDATION:
Staff recommends approval of the negotiated settlement with TXU Docket #27891
COMMENTS:
ATTACHMENTS:
Agreement letter for Mr. Shawn P. St.Clair McGinnis, Lockridge & Kilgore, LLP
Memo from TPPA
Transition Tariff for TXU Electric Delivery Co
:
Submitted B Mi a Ma en, Jim ig
Energy rvices Manager As an 't Manager
for Util'C
0
Mr. Shawn P. St. Clair
McGinnis, Lochridge & Kilgore, L.L.P.
919 Congress Avenue, #1300
Austin, Texas 78701
RE: Authorization to Subscribe Agreement Relating to Transition Charges
Docket No. 27891
It is within my authority as of
the City of Texas, to delegate to Shawn P. St. Clair
the ministerial act of signing of the final TC Reimbursement Agreement, in settlement of PUC
Docket No. 27891. I delegate the signing of the document to you because you are legal
counsel for another party in this proceeding and because counsel for TXU Electric Delivery
has put only one signature block on the Agreement for all participating electric cooperatives
and municipal electric utilities.
It is expressly understood that this authorization is solely for the purpose of your signing the
above referenced Agreement for the City of and your signature
authorization is limited to that document. If you have any questions, please call me at
(Name)
(Title)
go
Tariff for Retail Delivery Service
• TXU Electric Delivery Company
6.1.1 Defivary System Charges Sheet: 7
Applicable Excludes Certified Service Area previously served by TXU SESW Pape 1 of 7
Effective Date: November 15 2061 Revision Three
6.1.1.7 - Rider TC1 - Transition Charge
APPLICATION
Applicable, pursuant to Subchapter G, of Chapter 39 of the Public Utility Regulatory Act (PURA), to all existing or future
retail customers taking transmission andfor distribution service from the Company and to the facilities. premises, and
loads of those retail customers, whin the Company's geographical certificated service area as it existed on May 1, 1999_
This schedule also applies to:
h. Retail customers taking service at facilities, premises, or loads located within the Companys geographical semce
area as it existed on May 1, 1999 who are not presentty receiving transmission andlor distribution service from the
Company. but whose present facilities, premises, or loads received transmission angor distribution service from the
Company at any lime on a alter May 1, 1999 when a request to charge service to another utility was not pending.
2. Retail customers whose load is served by New On-site Generation (NOSG) as defined by P.U.C. Suasr. R.
25 342(cx1).
3 Public retail customers located within the service area who purchase pourer from the General Land Office under
PURA § 35102
Beginning on the first tilling cycle after the issuance or transition bonds Issued to recover the Company's regulatory
assets and other qualified costs and continuing until the date customer choice begins In the paver region in which the
Company Is located, there is recorded in a separate account. for that purpose, an amount equal to the amount collected
by the application of this rate to be Used to repay the pnncipal and Interest and ongoing fees aro expenses on the
transition bonds_ After customer choice begins in the power region in which the Company is located. the amount
calculated pursuant to this rate will be billed to retail electric providers (RFP) based on individual retail customer
consumption.
METHOD OF CALCULATION
(a) For all retail oustomers on each retail rate schedule.
The transition charge is calculated for each regulatory asset recovery class by the applicator of a Transition
Charge Facto, determined in accordance with the following tonmula':
Transition Charge Factor (TCF) = ((TC'RAAF)~Aj / K, where.
TC = Total Recovery Anqurd corresponding to the length of the Recovery Period is an amount necessary to
recover the principal and interest and ongoing fees aro expenses associated with the bonds,
debentures, notes, certificates of participation or of beneficial Interest, or other evidence of
indebtedness or ownership that are issued try the Company, its successors, or an assignee under a
Pudic Uttiry CmmmissIW of Texas approved financing order.
RAAF = Regulatory Asset Allocation Factor for each class as stews in the table below
A = True -up amount for each regulatory asset recovery dass as contained in a notification filed with the
Commission under PURA § 39.003, subject to Cmmmisston review within 15 days of filing.
K = The Company's most current estimated KWh or kW sales by regulatory asset recovery class fa the
length of the Recovery Period as contained in a notificaton filed with the Commission under PURA
§ 39.003, subject to Commission review within 15 (lays or flleg.
'Flo the General Service Secondary aro General Service Primary classes, the two-step procedure described
In the Financing Order fa Docket No. 21527 well be used to calculate a TCF m $/kWh for no -demand metered
customers aro a TCF in $/kW for demand -metered customers.
For the purpose of this forni Recovery Period means, pursuant to PURA § 39.307, a period not to exceed 12
months.
70
L-1
• Tariff for Retail Delivery Service
TXU Electric Delivery Company
6.7.1 Delivery System Charges Sheet: 7
Applicable. Excludes Certified Service Area previously served by TXU SESCO Page 2 of 7
Effective Date. November 15, 2004 Revision: Three
r1l
J
(b) Regulatory Asset Allocation Factors (RAAF) and associated Transition Charge Factors for each regulatory asset
recovery class are as follows:
Regulatory Transition
Asset Charge Factors
Regulatory Asset Rab Schedule Allocation (TCF)
Recovery Class Factor
(am)
Residential Service R. RLU, RTU, RTU1, RTUi-M. FIRE 0.412705 See Page 7 of 7
General Service GS, SSec. GSR, MS, MP -Sec GTU Sec, GTU-M-Sec, 0.447323 See Page 7 of 7
Secondary RTPSec, GC -Sec, and all riders excluding
Interruptihie
General Service Primary GP, S-Prl, GPR, MSPn. MP-Prl, GTU-Pn, GTU-M-Pr, 0.058902 See Page 7 of 7
RTP-Pn, GGPn, and all riders exWrdng interruptible
High voltage Service HV, S -Tran, HVR, GTU-Tran GTU-M-Tran, RTP -Tran, 0.027075 See Page 7 of 7
GC -Tran, and all fibers ei cl ung interruptible
Lighting Service OL, SL, SL-Pn
0-006836 See Page 7 of 7
Instantaneous GSI, GPI, FM, SSI, SPI, STI, GSRTP11, GSRTPIM, 0.0185611 See Page 7 of 7
Interruptible GSRTPID, GPRTPIl. GPRTPIM, GPRTPID, HVRI,
HVRTPIM, HVRTPID, and applicable riders
Noticed Interruptible GSNI, GSNB, GPNI, GPNB, HVNI, NVNB, GTUC-Sec, 0.027711 See Page 7 of 7
GTUC-Pr, GTUC-Tran, GTUC-M-Sec, GTUC-M-PTI,
GTUC-M-Tran, GSRTPNI, GPRTPNI, HVRTPNI, and
applicable riders.
Should any of the Regulatory Asset Recovery Classes cease to have any customers, Mie Regulatory Asset
Allocation Factor will be aqusted proportionately such that the total RAAF equals 1.000.
For Rate S and Rider SI customers, the transition charge will be a pro -rated daily demand charge based on the
otherwise applicable non -standby transition charge.
(a) The Transition Charge Amount for each customer is determined by multiplying the applicable Transition Charge
Facto (TCF) by the customers kWh Of kW usage in the billing month. The Transition Charge Amount fo each
customer is determined to the nearest whale cent.
(b) Each customer receiving service on or before May 1, 1999 will be assigned to the specific Regulatory Asset
Recovery Class associated with the principal rate sche*Ae under which a myortly of the mstorers service was
provided on May 1, 1999, and shall remora in sad! Regulatory Asset Recovery Class until customer ceases receiving
regulated service from TXU Electric, except as provided for in PURA § 39.252(1:,)(1) and (c).
(c) Any customer not previously served by TXU Electric aro Initiating service ager May 1, 19% and poor to January 1.
2002, will be assigned to the specific Regulatory Asset Recovery Class associated with the principal rate schedule
under which a majority, of the customers service was indialy Provided and shall remain in said Regulatory Asset
Recovery Class until customer ceases receiving regulated service from TXU Electric, except as provided for in
PURA § 39.252(bN1) and (c).
(d) Each customer initiating service on or after January 1, 2002. will be assigned to a specific Regulatory Asset
Recovery Class on the basis of the principal rate schedule under which the majority of the customers load would
have been served as of May 1, 1999.
w
Tariff for Retail Delivery Service
TXU Electric Delivery Company
G. 1.1 Delivery System Charges Sheet: 7
ApplicableExcludes Certified Service Area previously served Dy TXU SESCO Page 3 of 7
Effective Date: November 15, 2003 Revision. Three
NON-STANDARD TRUE -UP PROCEDURE
In the event that the forecasted billing units for one or more of the Transition Charge customer classes Tor an upcoming
period decreases by more than 10% of the billing units from the 12 months ending Apol 30, 1999, the Servicer shall
make a non-standard true -up filing at least 90 days before the date of the next true -up adjustment. The hue -up shall be
conducted in the following manner. The Servicer shall:
(a) allocate the upcoming period's Periodic Billing Requirement based on the Raffs approved in the
Financing Order;
(b) calculate undercollectlons or overcollections from the preceding period in each class,
(c) sum the amounts allocated to each customer class in steps (a) and (b) above to determine an adjusted
Periodic Billing Requirement for each Customer Class,
(d) divide the Periodic Billing Requirement for each customer class by the maximum of the forecasted
billing units or the threshold billing units for that class, to determine the threshold rate;
(e) multiply the threshold rate by the forecasted billing units for each class to determine the expected
collections under the threshold rate.
(f) allocate the difference in the adjusted Periodic Billing Requirement and the expected collections
calculated In step (e) among the transition charge customer classes using the RAAFs approved in this
Financing Order,
(g) add the amount allocated to each class In step (f) above to the expected Collection amount by Class
calculated in step (e) above to determine the final Periodic Billing Requirement for each class, and
(h) tlivide the final Periodic Billing Requirement for each class by the forecasted billing units to determine
the transition charge rate by class for the upcoming period. For the General Service Secondary and
General Service Primary classes, the (wo-step procedure described In the Financing Order for Docket
No. 21527 will be used to calalate a TCF in MWh for non -demand -metered customers and a TCF in
StkW for demand -metered customers.
A proceeding for the purpose of approving a non-standard true -up should be conducted in hie follming manner-
(a)
anner(a) The servicer wilt make a "non-standard true -up filing- with the Commission at least 90 days before the
date of the proposed true -up adjushnent. The filing troll contain the proposed charges to the transition
charge rates, justification for such changes as necessary to specihmlty address the cause(s) of the
proposed non-standard true -up, and a statement of the proposed true -up date.
(b) Concurrently with the thing of the non-standard true -up with the Commission, the servicer will notify all
pares in Docket No. 21527 of the filing of the proposal far a non-standard true -up.
(c) The servicer will issue appropriate notice and the Commission will conduct a contested case
proceeding on the nonstandard hue -up proposal pursuant to PURA § 39.003.
The scope of the proceeding volt be limited to determining whether the proposed adjustment complies win this Financing
Order. The Commission will Issue a final order by the proposed true -up adjustment date stated in the non-standard true -
up filing. In the event that the Commission cannot issue an oder by that date, the servicer vall be Permitted to implement
its proposed Charges. Any modifications subsequently ordered try the Commission will be made by the servicer in the
next hue -up filing_
BILLING AND COLLECTION
The billing and collection of TC Rates may differ as set forth in this schedule. The terms and conditions for
each parry are set forth below.
1) Billing and Collection Prior to Customer Choice
A. Billing by the Servicer to end-use customers
1. Applicable to Consumption of all Current retail customers.
2. Payment terms identical to present retail rates.
3. Right to terminate Tor non-payment pursuant to P.U.C. Sresr. R. 25213 and 25.29, or any
successornee(s).
Me to former retail customers of the Compa
service from other Utilities or Cooperatives, if
r pending as of May 1. 1999.
72
in mulbpny-cenmcated service areas now
e customer did not have a request to switch
Tariff for Retail Delivery Service
. TXU Electric Delivery Company
6.1.1 Delivery System Charges Sheet 7
Applicable.- Excludes Certified Service Area previously served by TXU SESCO Page 4 of 7
Effective Date: November 15, 2004 Revision: Three
2. Charges subject to his tariff must be paid In full by the other utility or cooperative to the Servicer
16 days after billing by the Servicer regardless of whether the utility or cooperative collects such
charges from Ne end-use retail customer
C Billirgsby Servicer to Nonelgible Self-aeneralion (NESG)
1. Applicable to end use consumption served by on-site non -eligible sett -generation.
2. Payment terms pursuant to the Commission's rules.
3. Right to terminate for non-payment pursuant to P. U.C. SU65T. R. 25.28 and 25 29, or any
successor rule(s).
21 Billing and Collection Subsequent to Customer Choke
. ryrym.o— w nn nw 1-at,r.in stl oto uic l unpolry iii muNjRy-cermicaieu servHoe areas now
taking service frau other Wlities a cooperatives.
2. Charges subject to this tariff must be paid in full by the other electric utility or cooperative to the
Servicer 35 days after billing by the Servicer regardless of whether the utility Or cooperative
collects such Charges from the end-use retail Customer.
B Billings by Servicer to NESG
1. Applicable to era -U consumption served by on-site noneligibie self generation.
2. Payment terms pursuam to the Commission's rules.
3. Right to terminate for non-payment pursuant to the Conrnissan's rules.
C. Billings by the REP or its Replacement to End -Use Customers
1. Applicable to consumption of all retail end-use customers served by the REP for which TCs appy,
including applicable former customers and NESG, under Ne following conditions:
2 REPS shall provide the Servicer with full and timet' information necessary to provide proper
reporting and for billing and true -up adjustments.
3. Each REP must (1) have a long-term, unsecured credit rating of not less than 'BBB-* and'Baa3'
(or the equivalent) from Standard & Poors and Moodys Investors Service, respectively, or (2)
provide (A) a deposit or two modus' maximum expected Transition Charge collectins in the forth
of cash, (B) an affiliate guarantee, surety bond, or letter of credit providing is payment of such
amount of Transition Charge collections in the event that the REP defaults in its payment
obligations, a (C) a combination of any of the foregoing. A REP that does not have Or mantan
the requisite long-term, Unsecured credit rating may select which alternate form of deposit, credit
support, or combination thereof it will utilize, in its sole discretion. The Indenture Trustee shall be
the beneficiary of any affiliate guarantee, surety bond or letter of credit. The provider of any
affiliate guarantee, surety bad, or letter of credit must have and maintain a "-tend, unsecured
credit ratings of not less than "BBB " and'Baa3" (or the equivalent) from Standard & Poors and
Moody's Investors Service, respectively.
4. If the long-term, unsecured credit rating from either Standard & Poors or Moodys Investors
Service of a REP that did not previously provide the alternate forth of deposit, credit support, a
combination thereof or of any provider of an affiliate guarantee, surety bond, a letter of credit is
suspended, withdrawn, or downgraded below "BBB- or -Baa3' (or the equivalent), the REP must
provide the alternate form of deposit, credit support, or combination thereof. a new forms thereof,
in each case it= providers with the requisite ratings. within 10 business days following such
suspension, withdrawal, a downgrade. A REP railing to make such provision must comply with
the provisions set forth in Paragraph 3 of the next section, Billings by the Servicer to the REP or its
Replacement (when applicable).
5. The computation of the size of a required deposit shall be agreed upon by the Servicer and the
REP, and reviewed no more frequently than quarterly to ensure that the deposit accurately re0ects
two monthsmaximum collections. Whin 10 business nays following such review. (1) the REP
shall remit to the Indenture Trustee the amount of any shortfall in such required deposit or (2) the
Servicer shall instruct the Indenture Trustee to remit to the REP any amount in excess of such
required deposit A REP failing to so remit any such shortfall must comply with the provisions set
forth in Paragraph 3 of the next section. Billings by the Servicer to the REP or its Replacement
13
48
Tariff for Retail Delivery Service
• TXU Electric Delivery Company
6.1.1 Delivery system charges Sheet 7
Applicable: Excludes Certified Service Area previously served by TXU SESCO Page 5 of 7
Effective Dale. November 15, 2004 Revision. Three
Segregated account. and invested in snort -term high quality investments, as permitted by the
rating agencies rating the Transition Bonds. Investment earnings on REP cash deposits shall be
considered part of such cash deposits so long as they remain on deposit with the Indenture
Trustee. At the instruction of the Servicer, cash deposits will be remitted with investment earnings
to the REP at Ute end of the term of the Transition Bonds unless otherwise utllaed for the payment
of the REP's obligations for Transition Bond payments. Once the deposit is no anger required,
the Servicer shall promptly (but not later than 30 calendar clays) instruct the Indenture Trustee to
remit the amounts in the segregated accounts to the REP.
6. In the event that a REP or the Prowdo of Last Resort (POLR) is billing customers for TCs, the
REP shall have the right to transfer the customer to the POLR (or to another certified REP) or to
direct the Servicer to terminate transmission antl distnbulgn service to the end-use customer for
non-payment by the end-use customer pursuant to applicable Commission Mes.
D Billings by the Servicer to the REP or its Replacement (when applicable)
1. Applicable to all consumption subject to REP billing of TCS.
2. Payments of TCS are clue 35 calendar clays follovo g each billing by the Servicer to the REP, without regard
to whether or when the REP receives payment from its retail customers. The Servicer shall accept
payment by electronic funds transfer (EFT), vire transfer (WT) and/or check Payment will be considered
received the date the EFT or VVT is received by the Serwcer, a the dale the check clears. A 5% penalty is
to be charged on amounts received after 35 calendar clays; however, a 10 -calendar -clay grace period will
be allowed before the REP is considered to be in default_ A REP In default must comply with the provisions
Set forth in Paragraph 3 below. Tne 5% penalty w111 be a one-time assessment measured against the
current amount overdue from the REP to the Servicer. The current amount consists of the total unpaid
Transition Charges existing on the 36' calenclar day after biting by the Servicer. Any and all such penalty
payments will he made to the indenture trustee to be applied against Transition Charge obligations. A REP
shall not be obligated to pay the overdue Tmnsibon Charges of another REP. If a REP agrees to assume
the responsibility for the payment of overdue Transition Charges as a condition or receMng the customers
of another REP who has decided to terminate service to those customers for any reason, the new REP
shall not be assessed the 5% penalty upon such Transition Charges, However, the poor REP shall not be
relieved of the preve" assessed penalties.
• 3. After the 10 alerdar-day grace period (the 46' calendar day after the billing dare) referred to in Paragraph
2 above, the Servicer shall have the option to seek recourse against any cash deposit, affiliate guarantee,
Surety bond, leder of credit. or combination thereof crude by the REP, and aval itself of such legal
remedies as may be appropriate to collect any remaining unpaid Transition Charges and associated
penalties due the Serioafter the application of the REPS deposit or atemate form of credit support. In
addition, a REP that Is in default with respect to the requirements set forth in Paragraphs 4 and 5 of the
previous section. Billings by the REP or its R plagtr rg to End- U std and Paragraph 2 of this
section shall select and implement one of Une following options:
(a) Allow the Provider of Last Resort (POLR) or a qualified REP of the customer s choosing to
immediately assume the responsibility for the billing and collection of Transit= Charges.
(b) Immediately implement other mutually sutable and agreeable arrangements with the Servicer. It
is expressly understood that the Servicers ability to agree to any other arrangements will be
limited by the terns of the servicing agreement and requirements of each of the rating agencies
that have rated the Transition Bonds necessary to avoid a suspension, withdrawal, or downgrade
of the ratings on the Transition Bonds.
(c) Arrange that all amounts owed by retail customers for services rendered be timely billed and
Immediately pad directly into a Kock -Dox controlled by the Servicer with such amounts to be
applied fust to pay Transition Charges before the remaining amounts ore released to the REP. All
costs associated with this mechanism will be home solely by the REP.
If a REP that is in default fails to irnmedialely select and implement one of the foregoing options in (a), (b).
or (c) or, after So selecfirg one of the foregoing options, fans to adequately meet its responsibilities
thereunder, then the Servicer shall immediately implement option (a). Upas reestablishment of the
requirements set forth In Paragraphs 4 and 5 of the previous Section, Billings by the REP a its
Replacement to End -Use Customers, and Paragraph 2 of this section and the payment of all past-due
am aunts and associated penalties, the REP will no longer be required to comply with this subsection
4. The initial POLR appointed by the Commission, a any Commission appointed successorto the POLR, will be
required to meet the minimum credit rating arever depostkredl support requirements described In Paragraph 3
of the preceding section, Billings by the REP ails Replacement to End-USe Customers. in addition to any other
standards that may be adopted by the Commission. If the POLR defaults or is not engole to provide Such
services, responsibility for billing and collection of hansdlon charges will immediately be transferred to and
74
Tariff for Retail Delivery Service
• TXU Electric Delivery Company
6.1.1 Delivery System Charges Sheet. 7
Applicable: Excludes Certified Service Area previously served by TXU SESCO Page 6 of 7
Effective Date: November 15. 2004 Revision: Twee
assumed by rite Servaef unlit a new F OLR can be named by me uornmtsslon or me Customer reques6 the
services of a certified REP. Retail customers may never be re -billed by the successor REP, the POLR, or
Servicer for any amount of Transition Charges they have paid their REP (although future TCs shall reflect REP
and other system -wide charge-offs). Additionally, it the amount of the penalty detailed in Paragraph 2 of this
section Is the sole remaining past -due amount after the 45th clay, the REP shag not be required to comply with
(a), (b), or (c) above, unfess the penalty is not paid within an additional 30 calendar days.
5. In the event the Servicer is billing customers for Transition Charges, the Servicer shall have the right to
terminate transmission and distribution service for non-payment by end-use customers pursuant to the
Commission's rules.
6. Notwithstanding Paragraph 2 of this section, the REPS will be allowed to hold back an allowance for
charge-offs in their payments to the Servicer Such charge-off rate will be recalculated each year in
connection with the annual true -up procedure. In the initial year, the REPS will be allowed to remit
payments based on the same system -vide charge oft percentage then being used by the Servicer to remit
payments to the indenture tnnstee for the holders of Transition Bonds. On an annual basis In connection
with the true -up adjustment process, the REP and the Servicer will be responsible for reconciling the
amounts held back with amounts actually written off as uncollectible in accordance with the terms agreed to
by the REP and the Servicer, provided that:
(a) The REP's right to reconuliation for mite -offs will be limited to customers whose service has been
permanently terminated and whose entire accounts (i.e.. all amounts due the REP for its own account
as well as the portion representing Transition Charges) have been written oft
(b) The REP's recourse will be limited to a credit against future TC payments unless the REP and lite
Servicer agree to atiemative arrangements, but in no event will the REP have recourse to the SPE or
its funds for such payments.
(c) The REP shall provide information on a limey basis to the Servicer so that the Servicer can include the
REP's default experience and any subsequent credits into its calculation of the Adjusted Transition
Charge Rates for the next TC billing Period and the REP's rights to credits will not take effect unfit after
such Adjusted Transition Charge Rates have been implemented.
7. In the event that a REP disputes any amount of billed Transition Charges, the REP shall pay the disputed
amount under protest according to the fimelines detailed in Paragraph 2 of this section. The REP and
Servicer shall first attempt to informally resolve the dispute, but 9 falling to do so within 30 calendar days,
• either party may file a complaint with the Commission. If the REP is successful in the dispute process
(informal or formal), the REP shall be entitled to interest on the disputed amount pail to the Servicer at the
Commission -approved interest rate. Disputes about lite date of receipt of Transition Charge payments (and
penalties ansing thereof) or the size of a required REP deposit will be handled in a like manner. Any Interest
paid by the Servicer on disputed amounts shall rat be recovered through Transition Charges if it is
determined that the Servicers claim to the funs is clearly unfounded. No interest shall be paid by the
Servicer if it Is determined that the Servicer has received inaccurate metering data from another entity
providing competitive metering services pursuant to PURA § 39.107.
6. 11 the Servicer is providing the metering, the metering data wall be provided to the REP at the same time as
the billing. If the Servicer is not providing the metering, the entity providing metering services) will be
responsible for complying with Commission rules and ensuing that the Servicer and the REP receive timely
and accurate metering data in order for the Servicer to meet its obligations under the Servicing Agreement
and the Financing Order with respect to billing and true -ups.
NOTICE
This rate is subject to the orders of regulatory bodies having jurisdiction and to the provisions of Compartys Tariff for
Electric Service_
75
go
75.1
Tariff for Retail Delivery Service
TXU Electric Delivery Company
6.1.1 Delivery
•
System charges
Sheet 7
Applicable: Excludes Certf0ed Servlce Area previously served by TXU SESCO
Page 7 0f 7
Eftecbve Date:
November 15, 2004
Revision Three
Translbon Chwae Factor 1
(TCF II
Etfective Date
ResidenBal
General Service
General Service Hiah VolMe
Liohbna
Instantaneous
Noticed
Service
Secorloary
Prlmam smjce
gttsg
Interruptible
IntenuoGble
November 30,
0.000691
0 000632 SAM
0000455 LAWN 0.092 Sa'N
0000794
O.GB7 SAW
0.174 SAW
2004
SIkWh
or 0185 SIM
or0219 SAW
SAM
August 30,
0000658
0.000290 SIAWh
0.00014451kWh 0050 SAW
0.000865
0.113 LAW
0.173 SAW
2004
$IkWh
or 01951"
or 0.248 LkW
$*Wh
January 28,
0.000712
0.000655 SAWN
0.000142$*Wh 0137 MW
0.000785
0.074 LAW
0.135 LAW
2004
$IAWh
or 0186 S"
or 0,201$JkW
SAM
August 28,
0000599
0.000577 SACWh
0.000395 MWh 0.197 SAW
0.000724
0.083 SAW
0.150 LAW
2003
SAM
W0158LAW
or0A61 S&W
LkWh
75.1
•
Tariff for Retail Delivery Service
TXU Electric Delivery Company
6.1.1 Delivery System Charges Sheet 7
Applicable: Excludes Certified Service Area previously served by TXU SESCO Page 1 of 7
Effecl:ve Date November 15. 2004 Revision: One
6.1.1.7.1- Rider TC2 - Transition Charge
APPLICATION
Applicable. pursuant to Subchapter G, of Chapter 39 of td Public Utility Regulatory Act (PURA), to all existing or future
retail customers taking transmission ardla distibution service from the Company and to the facilities, premises, and
loads of those retail customers, within the Company's geographical certificated service area as it existed on May 1. 1999.
This schedule also applies to:
1. Retail customers taking semce at facilities, premises, or bads located within the Cornparry s geographical semce
area as it existed on May 1, 1999 who are not presently receiving transmission and/or distribution service from the
Company. but whose present facilities, premises, or loads received transmission andfor distribution service from the
Company at any time on or after May 1, 1999 when a request to change service to another utility was net pending.
2. Retail customers whose bad is served by New On-site Geneaton (NOSG) as defined by P.U.C. Suesr. R.
25.342(c)(1).
3 Public retail customers located within the service area who purchase pourer from the General Lard Office under
PURA § 35 102.
Beginning on the first billing cycle after the Issuance of transition bords Issued to recover the Comparys regulatory
assets and other qualified costs and cMbr-wing until the date customer c3holce begins In the power region in which the
Company is located, there is recorded in a separate account, for that purpose, an amount equal to the amount collected
try the application of this rate to be used to repay the pnnctpal and interest and ongoing fees and expenses m the
transition bonds. After customer choice begins In the power region in which the Company is cleated, the amount
ralmlated pursuant to this rate will be billed to retail electric providers (REP) based on Individual retail customer
consumption.
METHOD OF CALCULATION
(a) For all retail customers on each retail rate schedule.
The transition charge Is calculated for each regulatory asset recovery class by the application of a Transition
Charge Factor, determined in aavrdance with the foikrving formula':
Transition Charge Factor (TCF) = l(TC-RAAFy«AI / K, where:
TC = Total Recovery Amount corresponding to the IerKp of the Recovery Period is an amount necessary to
recover the principal and interest and ongoing fees and expenses associated with the Dads,
debentures, notes, certificates of participation or of beneficial interest, w other evidence of
Indebtedness or ownership that are Issued by the Company, is successors, or an assignee under a
Public Utility Commission of Texas approved finaong order.
RAAF = Regulatory Asset Allocation Faca for each class as shown in the table belay.
A = True -up amount for each regulatory asset recovery class as contained in a nOt ficabon filed with the
Cammisston under PURA § 39 003, subject to Cammisson review whin 15 days of filing.
K = The Company's nosh current estimated kWh or KW sales by regulatory asset recovery Gass for the
length of the Recovery Period as contained In a notification filed with the Commussion under PURA
§ 39.003, subject to Commission review wain 15 days of filing.
*For the General Service Secondary and General Service Primary classes, the two-step procedure described
in the Financing Order for Docket No. 21527 will be used to calculate a TCF in S/WWh far cion -demand metered
customers and a TCF in $/kW tar demandarletered customers_
For the purpose of this formula. Recovery Period means, pursuant to PURA § 39.307, a perod not to exceed 12
months.
752
so
• Tariff for Retail Delivery Service
TXU Electric Delivery Company
6.1.1 Delivery System Charges Sheet
Applicable: Excludes CenRled Service Area previously served by TXU SESCO Page 2 of
Effective Date. November 15, 2004 Revision: Or
(b) Regulatory Asset Allocation Factors (RMF) and associated Transition Charge Factors for each regulatory asse
recovery class are as follows:
Regulatory Transition
Asset Charge Factor
Regulatory Asset Race Schedule Factor (TCF2)
Recovery Class Factor
(RMF)
Residential Service R. RLU, RTU, RTUt, RTU1-M, RRE OA12705
See Page 7 of 7
General Service GS, S -Sec, GSR, MS, MP -Sec GTU-Sec, GTU-M-Sec, 0.47323
See Page 7 of 7
Secondary RTP -Sec. GC -Sec, and all riders excluding
Interruptible
General Service Primary GP, S-Pn, GPR, MS-Pn, MP-Pri, GTU-Pri, GTU-M-Pri, 0.058982
See Page 7 of 7
RTP-Pri, GC-Prl. and all riders excluding interruptible
High Voltage Service HV, S -Tran, HVR GTU-Tran GTU-M-Tmn, RTP -Tran, 0-027875
See Page 7 of 7
GC -Tran, and all riders excluding interruptible
Lighting Service OL, SL, SL-Pri 0.008036
See Page 7 of 7
Instantaneous GSI, GPI, HIA, SSI, SPI, STI, GSRTPll, GSRTPIM, 0.018568
See Page 7 of 7
Interruptible GSRTPID, GPRTPI7, GPRTPIM, GPRTPID, HVRI,
HVRTPIM, HVRTPID, aril applicable riders
Noticed Interruptible GSNI, GSNB, GPNI, GPNB. HVNI, NVNB, GTUCSec, 0.027711
See Page 7 of 7
GTUGPri, GTUC-Tran, GTUC-MSec, GTUC-M-Prl,
GTUGM-Tran, GSRTPNI. GPRTPNl. HVRTPNI, and
applicable riders.
Should any of the Regulatory Asset Recovery Classes cease to have any customers, the Regulatory Asset
Allocation Factor wall be adjusted proportionately such that the total RAAF equals 1.000.
For Rate S and Rider SI customers, the transition charge wilt be a prorated daily demand charge based on the
otherwise appltwble non -standby transition charge.
(a) The Transition Charge Amount for each customer is determined by multiplying me applicable Transition Charge
Factor (TCF) by the customers kWh or kW usage in fine billing month. The Transition Charge Amount for each
Customer IS determined to the nearest whole cent.
(b) Each Customer receiving service on or before May 1. 1999 volt be assigned to the specific Regulatory Asset
Recovery Class associated with the principal rate schedule under which a majority of the customers service was
provided on May 1, 1999, and shall remain in said Regulatory Asset Recovery Class until customer ceases receivinc
regulated seance from TXU Electric, except as provided for in PURA § 39.252(b)(1) and (c).
(c) Any, customer not previously served by TXU Electric and initiating seance after May 1, 1999 and prim to January 1.
20D2, wilt be assigned to the specific Regulatory Asset Recovery Class associated with the principal rate schedule
under which a majority of the customers service was initially provided and shall remain in said Regulatory Asset
Recovery Class until customer ceases receiving regulated service from TXU Electric, except as provided for in
PURA § 39.252(bx1) and (c).
(d) Each customer Initiating service on or after January 1, 2002, will be assigned to a specific Regulatory Asset
Recovery Class on the basis of the principal rate schedule under which the majority of the customers load would
have been served as of May 1, 1999.
a 75.3
• Tariff for Retail Delivery Service
TXU Electric Delivery Company
6.1.1 Delivery system Charges Sheet 7
Applicable: Excludes Certified Service Area previously served by TXU SESCO Page 3 of 7
Effect ve Dale November 15, 2004 Revision. One
NON-STANDARD TRUE -UP PROCEDURE
In the event that the forecasted billing units for one or more of the Transition Charge customer classes for an upcoming
period decreases by mare than I D% of the billing units from the 12 months ending Apnl 30, 1999, the Servicer shall
make a non-standard trueupriling at least 90 days before the date of the next We -up adjustment. The true -up shall be
conducted in the following manner. The Servicer shall:
(a) allocate the upcoming period's Periodic Billing Requirement based on the Raffs approved in the
Financing Order,
(b) calculate under collections or overcoltecixos from the preceding period in each dans:
(c) sum the amounts allocated to each customer class in steps (a) and (b) above to determine an adjusted
Penodic Billing Requirement for each customer class,
(d) divide the Periodic Billing Requirement for each customer class by the maximum of the forecasted
billing units or the threshold billing units for that class, to determine the threshold rate;
(e) multiply the threshold rate by the forecasted billing units for each class to determine the expected
collections under the threshold rate;
(t) allocate the difference in the adjusted Periodic Billing Requirement and Ne expected collections
calculated in step (e) among the transition charge customer classes using the RAAFs approved In this
Financing Order;
(g) add the amount allocated to each class in step (f) above to the expected collection amount by class
calculated in step (e) above to determine the final Periodic Billing Requirement for each class; and
(h) divide the final Periodic Billing Requirement for each class by the forecasted billing units to determine
the transition charge rate by class for the upcoming period. For the General Service Secondary and
General Service Primary classes, the ti o-slep procedure described In the Financing Omer for Docket
No. 21527 will be used to calculate a TCF in SAWh for non -demand -metered customers and a TCF in
SAW for demand -metered customers.
A proceeding for the purpose of approving a non-standard true -up should be conducted in the folowng manner:
(a) The servicer will make a -nonstandard true -up filing- with the Commission at least 90 days before the
date of the proposed true -up adjustment. The filkg wilt contain the proposed changes to the transition
charge rates, justification for such changes as necessary to specifically address the cause(s) of the
proposed non-standard true -up, and a statement of the proposed true -up date.
(b) Concurrently with the filing of the non-standard true -up with the Commission, the servicer will nottty all
parties in Docket No. 21527 of the filing of the proposal for a non-standard true up
(c) The servicer whit issue appropriate notice and the Commission win conduct a contested case
proceeding on the non-standard true -up proposal pursuant to PURA § 39.003.
The scope of the proceeding wit be limited to determining whether the proposed adjustment compiles with this Financing
Order. The Commission volt issue a final order by the proposed true -up adjushnent dale stated in the nonstandard true -
up filing_ In the event that the Commission cannot issue an order lay that date, the servicer will be permitted to implement
its proposed changes. Any modifications subsequently ordered by the Commission will be made by the servicer in the
next true -up filing.
BILLING AND COLLECTION
The billing and collection of TC Rates may differ as set forth in this schedule. The terms and conditions for
each party are set forth below:
1) Billing and Collection Prior to Customer Choice
A. Bllling by Ne Seri x to end-use custtmfiers
1. Applicable to consumptlon of all current retail customers.
2. Payment terms identical to present retard rates.
3. Right to terminate for non-payment pursuant to P.U.C. Suasr. R. 25.28 and 25 29, or any
successor rule(s).
Dam retail customers of the Company in multi jy-certi icated service areas now
from other ublibes or cooperatives, if the customer did not have a request to switch
ig as of May 1, 1999.
75.4
go
seMce areas now
service from other utilities or cooperatives.
2. Charges subject to this tariff must be paid in hill by the other electric utility or cooperative to the
Servicer 35 days after lalling by the Servicer regardless of whether the utility of cooperative
collects such charges from the end-use retail customer.
B. Bdrms by Servicer to NESG'
i. Applicable to end-use consumption served by on-site non -eligible set generation_
2. Payment terns pursuant to the Commission's rules.
3. Right to terminate for ncrh-payment pursuant to the Commission's rules.
C. Billings by the REP or its Replacement to End -Use Customers
I. Applicable to consumption of all retail eml-use customers served by the REP for which TCs appy,
• including applicable former customers and NESG, under the following conditions -
2. REPS shat provitle the Servicer with full and timely mfamation necessary to provide proper
reporting and for billing and true -up adjustments.
3. Each REP must (1) have a long-term, unsecured credit rating of not less than "BBB-' and'Baa3'
for the equivalent) from Standard 8 Poors and M000ys Investors Service, respectively, or (2)
provide (A) a deposit of two months' maximum expected Transition Charge collections in the torn
of cash, (B) an affiliate guarantee, surety bond, or letter of credit providing for payment of Such
amount of Transition Charge collections In the event mal the REP defaults In its payment
obligations, or (C) a combination of any of the foregoing. A REP that does not have or maintain
the requisite lora-term, unsecured credit rating may select which alternate form of deposit credit
support. or combinaton thereof it will utilize, in its sole discietbn_ The IndenWre Trustee shall be
the beneficiary of any affiliate guarantee, surety bond or letter of credit. The provider of any
affiliate guarantee, surety bond, or letter of credit must have and maintain a kung -term, unsecured
credit ratings or not less than "BBB= and `Baa3" (or the equivalent) from Standard 8 Poors and
Morays Investors Service. respectively
4. If the kng-tern, unsecured credit rating from either Standard 8 Poors or Moodys Investors
Service of a REP that did not previously provide the atemale form of deposit, credit support, or
combination thereof or of any provider of an affiliate guarantee, surety bond, or letter of credit is
Suspended, Withdrawn. Of downgraded below "BBB or'Baa3" (a the equivalent), the REP must
provide the alternate form of deposit, credit Support, or combination thereof, or new fortes thereof,
in each case from providers with the requisite ratings, within 10 business days following such
suspension, withdrawal. or downgrade. A REP failing to make such provision must comply worth
the provisions set firth in Paragraph 3 of the next Section, Billings by the Servicer to the REP or its
Replacement (when applicable).
5. The computation of the size of a required deposit shat be agreed upon by the Servicer and the
REP, and reviewed no more frequently than quarterly to ensure that the deposit accurately reflects
two months' maximum collections. Within 10 business days following Such review, (1) the REP
shall remit to the indenture Trustee the amount of any shortfall in Such required deposit or (2) the
Servicer shall instruct the Indenture Trustee to remit to the REP any amount in excess of Such
required deposit. A REP failing to so remit arry such shortfall must campy wM the provisions set
forth in Paragraph 3 of the next section, Billings by the Servicer to the REP or its Replacement
75.5
to
Tariff for Retail Delivery Service
7XU Electric Delivery Company
6.L1 Delivery System Charges Sheet 7
Applicable: Excludes Certified Service Area previously sewed by TXU SESCO Page 4 of 7
Effective Date: November 15, 2004 Revision One
2. Charges subject to this tariff must be paid in full by the other utility or cooperative to the Servicer
16 Clays after billing by the Serncer regardless of Whether the utility or cooperative collects such
charges from the end-use retail customer.
C. Billings by Servicer to Nonellgible Set -generation (NESG):
1. Applicable to end use consumption served by on-site non -eligible set -generation.
2. Payment terms pursuant to the Commission's rules.
3. Right to terminate for non-payment pursuant to P.U.C. Suesr. R. 25.28 and 25 29, or any
successor wets).
21 Billing and Collection Subsequent to Customer Choice
seMce areas now
service from other utilities or cooperatives.
2. Charges subject to this tariff must be paid in hill by the other electric utility or cooperative to the
Servicer 35 days after lalling by the Servicer regardless of whether the utility of cooperative
collects such charges from the end-use retail customer.
B. Bdrms by Servicer to NESG'
i. Applicable to end-use consumption served by on-site non -eligible set generation_
2. Payment terns pursuant to the Commission's rules.
3. Right to terminate for ncrh-payment pursuant to the Commission's rules.
C. Billings by the REP or its Replacement to End -Use Customers
I. Applicable to consumption of all retail eml-use customers served by the REP for which TCs appy,
• including applicable former customers and NESG, under the following conditions -
2. REPS shat provitle the Servicer with full and timely mfamation necessary to provide proper
reporting and for billing and true -up adjustments.
3. Each REP must (1) have a long-term, unsecured credit rating of not less than "BBB-' and'Baa3'
for the equivalent) from Standard 8 Poors and M000ys Investors Service, respectively, or (2)
provide (A) a deposit of two months' maximum expected Transition Charge collections in the torn
of cash, (B) an affiliate guarantee, surety bond, or letter of credit providing for payment of Such
amount of Transition Charge collections In the event mal the REP defaults In its payment
obligations, or (C) a combination of any of the foregoing. A REP that does not have or maintain
the requisite lora-term, unsecured credit rating may select which alternate form of deposit credit
support. or combinaton thereof it will utilize, in its sole discietbn_ The IndenWre Trustee shall be
the beneficiary of any affiliate guarantee, surety bond or letter of credit. The provider of any
affiliate guarantee, surety bond, or letter of credit must have and maintain a kung -term, unsecured
credit ratings or not less than "BBB= and `Baa3" (or the equivalent) from Standard 8 Poors and
Morays Investors Service. respectively
4. If the kng-tern, unsecured credit rating from either Standard 8 Poors or Moodys Investors
Service of a REP that did not previously provide the atemale form of deposit, credit support, or
combination thereof or of any provider of an affiliate guarantee, surety bond, or letter of credit is
Suspended, Withdrawn. Of downgraded below "BBB or'Baa3" (a the equivalent), the REP must
provide the alternate form of deposit, credit Support, or combination thereof, or new fortes thereof,
in each case from providers with the requisite ratings, within 10 business days following such
suspension, withdrawal. or downgrade. A REP failing to make such provision must comply worth
the provisions set firth in Paragraph 3 of the next Section, Billings by the Servicer to the REP or its
Replacement (when applicable).
5. The computation of the size of a required deposit shat be agreed upon by the Servicer and the
REP, and reviewed no more frequently than quarterly to ensure that the deposit accurately reflects
two months' maximum collections. Within 10 business days following Such review, (1) the REP
shall remit to the indenture Trustee the amount of any shortfall in Such required deposit or (2) the
Servicer shall instruct the Indenture Trustee to remit to the REP any amount in excess of Such
required deposit. A REP failing to so remit arry such shortfall must campy wM the provisions set
forth in Paragraph 3 of the next section, Billings by the Servicer to the REP or its Replacement
75.5
to
• Tariff for Retail Delivery Service
TXU Electric Delivery Company
6.1.1 Delivery System Charges Sere[ 7
Applicable: Excludes Certified Service Area previously served by TXU SESCO Page 5 of 7
Effective Date: November 15, 2004 Revision One
(when applicable). REP rash deposits shall be held by the Indenture Trustee, maintained in a
segregated account, and Invested in short -tens high quality investments, as permitted by the
rating agencies rating the Transition Bonds. Investment earnings on REP cash deposits shall be
considered part of such cash deposits so long as they remain on deposit with the Indenture
Trustee. At the instruction of the Servicer, cash deposits will be remitted with investment earnings
to the REP at the end of the tens of the Transition Bonds unless otherwise utilized for the payment
of the REP's dNigalions for Transition Bond payments. Once the deposit Is no longer required,
the Servicer shall promptly, (but rot later than 30 calendar days) instruct the Indenture Trustee to
remit the amounts in the segregated accounts to the REP.
6. In the event that a REP or the Provider of Last Resort (POLR) is billing customers for TCs, the
REP shall have the right to transfer the customer to the POLR (a to another certified REP) or to
direct the Servicer to terminate transmission and disthbution service to the end-use customer for
non-payment by the mouse customer pursuant to applicable Commission rules_
D. Billinus by the Semcer to the REP or is Replacement (when aoolicable)-
i. Applicable to all consumption subject to REP billing of TCs
2. Payments of TCS are due 35 calendar days following each billing by the Servicer to the REP, without regard
to whether or when the REP receives payment from Its retail customers. The Servicer shall accept
payment by electronic funds transfer (EFT), wire transfer (WT) ardfor check. Payment will be considered
received the date the EFT or WT is received by the Servoer, or the date the crledk Gears. A 5% penalty is
t0 be charged on amounts received after 35 calendar days. however, a 10-calenclar-0ay grace period wiII
be allowed before the REP is considered to be in default. A REP In default must comply with the provisions
set forth in Paragraph 3 below. The 5%penalty will be a one -lime assessment measured against the
current amount overdue from the REP to the Servicer. The current amount consists of the total unpaid
Transrbm Charges existing on the 36w calendar day after tilling by the Servicer. Any and all such penalty
payments will be made to the indenture trustee to be applied against Transition Charge obligations. A REP
shall not be obligated to pay the overdue Transition Charges of another REP. If a REP agrees to assume
the responsibility for the payment of overdue Transition Charges as a condition of receiving the customers
of another REP who has decided to terminate service to those customers for any reason, the new REP
shall not be assessed the 5% penalty upon such Transition Changes, however, the prior REP shall not be
relieved of the previously assessed penalties_
3. After the 10 calendar -day grace period (the 4V' calendar day after the billing date) referred to In Paragraph
2 above, the Servicer shall have the option to seek recourse against any cash deposit, affiliate guarantee,
surety bond. letter of credit, or combination thereof made by the REP, and avail itself of such legal
remedies as may be appropriate to collect any remaining unpaid Transition Charges and associated
penalties due the Servicer after the application of the REP's deposit or alternate form of credit support. In
addition, a REP that is in default with respect to the requirements set forth in Paragraphs 4 and 5 of the
previous section, &Ilinds by the REP or its Replacement to End -Use Customers and Paragraph 2 of this
section shall select antl implement bine of the following options:
(a) Allow the Provider of Last Resort (POLR) or a qualified REP of the customers choosing to
immediately assume the responsibility for the hlllmg and collection of Transition Charges.
(b) Immediately implement other mutually suitable and agreeable arrangements win the Servicer. It
is expressly understood that the Servlcef's ability to agree to any other arrangements will be
limited by the terms of the servicing agreement and requirements of each of the rating agencies
that have rated the Transition Bonds necessary to avoid a suspension, withdrawal, or downgrade
of the ratings on the Transiton Bods.
(c) Arrange that all amounts owed by retail customers for services rendered be timely billed and
Immediately pad directly into a lock -box controlled by the Servicer with such amounts to be
applied first to pay Transition Charges before the remaining amounts are released to the REP All
costs associated with this mechanism will be home Solely by the REP.
It a REP that s In default fails to immediately select and implement one of the foregoing options in (a), (b).
or (c) or, after so Selecting me Of the foregoing options, tails to adequately meet Its responsibilities
thereunder, then the Servicer shall Immediately implement option (a). Upon re-establishment of the
requirements sed forth in Paragraphs 4 and 5 of the previous section, Billings M the RF_p or 2
Replacement to End -Use Customers, and Paragraph 2 of this section and the payment of all past -due
amounts and associated penalties, the REP will no longer be required to comply with this subsection.
4. The Initial POLR appointed by the Commission, or any Commssion appointed successor to the POLR, will be
required to meet the minimum credit rating adfordepostfaedit support requirements desmbed In Paragraph 3
of the preceding section, Billings by the REP or Its Replacement to End -Use Customers, in addition to any other
standards that maybe adopted by the Commission If the POLR defaults a is not eligible to provide such
75.6
to
Tariff for Retail Delivery Service
TXU Electric Delivery Company
6.1.1 Delivery System Charges Sheet 7
Applicable: Excludes Centied Service Area prevdusty served by TXU SESCO Page 6 of 7
Effective Date: November 15, 2004 Revision: One
services, responsibility for billing and collection of transition charges will immediately be transferred to and
assumed by the Servicer until a nem, POLR can be named by the Commission or the customer requests the
services of a certified REP. Retail customers may never be re -billed by the successor REP, the POLR, or
Servicer for any amount of Transition Charges they have paid their REP (although future TCs shall reflect REP
and other system -vide charge-offs) Additionally, t the amount of the penalty detailed in Paragraph 2 of this
section is the sole remaining pastdueamount after the 45th day, the REP shall not be required to comply win
(a), (b), or (c) above, unless the penalty is not paid within an additional 30 calendar days.
5 In the event the Servicer is biding customers for Transition Charges. the Servicer shall have me right to
terminate transmission and oistnbution service for non-payment by end-use customers pursuant to the
Commission's rules_
6. Notwithstanding Paragraph 2 of this section, the REPS will be allowed to hold back an allowance for
charge-offs in their payments to the Semcer. Such charge -ort rate will be recalculated each year in
connection with the annual true -up procedure. In the initial year, the REPs will be allowed to remit
payments based on the same system -wide charge off percentage then being used by the Servicer to remit
payments t0 the Indenture trustee fon the holders of Transition Bonds. On an annual basis In connection
with the true -up adjustment process, the REP and the Servicer will be responsible for reconciling the
amounts held back with amounts actually written off as uncollectible in accordance with the terms agreed to
by the REP and the Semcer, provided that:
(a) The REPS right to reconciliation for wnte-offs will be limited to customers whose service has been
permanently terminated and whose entire accounts (I e. all amounts due the REP for its own account
as well as the porton representing Transition Charges) have been when off.
(b) The REPS recourse will be limited to a credit against future TC payments unless the REP and the
Ser/102r agree to alternative arrangements, but in no event will the REP nave recourse to the SPE or
its funds for such payments.
(c) The REP shall provide information on a timely basis to the Servicer so that rhe Servicer can include the
REP's default expenence and any subsequent credits into its calculation of the Adjusted Transiton
Charge Rates for the next TC billing Period and the REP's rights to credits will not take effect until after
such Adjusted Transition Charge Rates have been implemented.
7. In the event that a REP disputes any amount of billed Transition Charges, the REP shall pay the disputed
amount under protest according to the timelines detailed in Paragraph 2 of this section. The REP and
Servicer shall first attempt to Informally resolve the dispute. but 0 failing to do so within 30 calendar days,
either party may fife a complaint with the Commission If the REP is successful in the dispute process
(tmormal or formal), the REP shall be entitled to interest on the disputed amount pad to the Semcer at the
Commission -approved Interest rate. Dispules about the date of receipt of Transition Charge payments (and
penalties arising thereof) or the size of a required REP deposit will be handled In a like manmr. Any Interest
paid by the Servicer on disputed amounts shall not be recovered through Transibon Charges it it is
determined that the Servicers claim to the funds is clearly unfounded. No Interest shah be paid by the
Serve er if it is determined that the Servicer has received Inacolrate metemhg data from anomer entity
Providing competitive metering services pursuant to PURA § 39.107.
6. If the Semcer is providing bre metering, the metering data will be provided to the REP at the same time as
Me billing, if the Servicer is rot providing the metering, the entity providing metering service(s) will be
responsible for complying with Commission Nies and ensuing that the Servicer and the REP receive timely
and accurate metering data in oiler for the Servicer to meet its obligations under the Servicing Agreement
and the Financing Order Nth respect to billing and true -ups_
NOTICE
This rate is subject to the orders of regulatory bodies having junsdicoon and to the pmvisl0ns of Company's Tariff for
Becmc Service
757
Ift
Tariff for Retail Delivery Service
TXU Electric Delivery Company
SAA Delivery System charges sheet 7
Applicable- Excludes Certified Seroce Area previously served b)' TXU SESCO page 7 Of 7
Effective Date: November 15, 2004 Revision: One
Transition Charge
factor 2 (TCF2)
Effective Date
Residential
General Semm
General Service
Hloh Voltage
Lmhbm
Instantaneous
Notice
ice
Se Owary
P r
SeMce
Servke
Intenuotible
InterruotOe
November 30,
0.001164
0.000577 SAWN
0.00079951AWh
0.149 NAW
0.001343
0.148 SAW
0316 NAW
2004
NAWh
"0163 NAW
w0.355 NAW
NAWh
June 30, 2004
0 000966
0.000970 SAM
0000654 SWJVh
0.205 SIM
0.001277
DI 13 NAW
0.195 NAW
NAWh
x0282 SAW
«0.296 NAW
$/kWh
0
758
IIft