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HomeMy WebLinkAboutORD 2026-54 - Amending Ch.13.04 "Electric Rates" Amending Code of Ord Sec 13.04ORDINANCE NO. .2-D2,%-5u AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, AMENDING CHAPTER 13.04, TITLE 1 ENTITLED "ELECTRIC RATES" OF THE CODE OR ORDINANCES OF THE CITY OF GEORGETOWN RELATING TO ELECTRIC SERVICE RATES FOR VARIOUS CUSTOMER CLASSES; REPEALING CONFLICTING ORDINANCES AND RESOLUTIONS; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR PUBLICATION; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Georgetown periodically reviews and adjusts its electric service rates; and WHEREAS, the City of Georgetown established its current electric rates in 2025; and WHEREAS, the City of Georgetown has completed a cost -of -service study for the electric utility; and WHEREAS, the City Council desires to implement rates which fully recover the cost of electric service; and WHEREAS, the City Council of the City of Georgetown wishes to amend the current electric service rates and adopt the proposed rates, effective on all electric utility services for the entire service period at the rate that was effective on the end date of the service period, on and after October 1, 2026. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, THAT: Section 1. The meeting at which this ordinance was approved was in all things conducted in compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 2. The facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct and are incorporated by reference herein and expressly made a part hereof, as if copied verbatim. Section 3. Title 1 of Chapter 13.04 entitled "Electric Rates" of the Code of Ordinances is hereby amended and replaced in its entirety as shown in Exhibit A. Section 4. If any provision of this ordinance or application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions, or application thereof, of this ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are hereby declared to be severable. Section 5. That all ordinances that are in conflict with the provisions of this ordinance be, and the same are hereby, repealed and all other ordinances of the City not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 6. The Mayor is hereby authorized to sign this ordinance and the City Secretary to attest. This Ordinance shall become effective and be in full force and effect on October 1, 2026, in accordance with the provisions of the Charter of the City of Georgetown. PASSED AND APPROVED on First Reading on the Z'�day of 2026. v PASSED AND APPROVED on Second Reading on the iIIA-day of 2026. ATTEST: TM By: Robyn De more. City Secretary APPROVED AS TO FORM: Sky6 Mass , City Attorney 1 EXHIBIT "A" Sec. 13.04.010. Rates and charges —Electricity —Schedule. The monthly rates and charges for the sales made of services rendered by the electric system of the City are established, levied, fixed, and prescribed as set forth in Sections 13.04.010 through 13.04.100. Electric service rendered under this Article is subject to the City's Rules and Regulations, engineering standards and service standards. By applying for or accepting electric service, the customer shall provide the City access to the customer's premises and electric facilities as necessary for the installation, inspection, operation, maintenance, repair, replacement, reading, disconnection, or removal of City facilities, meters, and equipment, subject to the City's Rules and Regulations. The City may require easements, access rights, or other documentation as a condition of service where necessary to provide safe and reliable service. Sec. 13.04.011 Definitions For purposes of this Article, the following terms shall have the meanings set forth below 1. Actual Demand. Actual Demand means the maximum rate at which electric energy is used by a customer, expressed in kilowatts (M), and measured over a 15-minute interval during the billing period, or such other interval as established by the City's metering standards. Demand is a measure of power and is not a measure of total energy consumption. 2. Allocated Capacity. Allocated Capacity means the maximum allowed distribution infrastructure capacity designed and allocated to the Facility based on the Customer's specified load requirements, including Peak Demand and energy needs. This capacity ensures sufficient distribution capacity to meet Peak Demand under normal operating conditions, including substation and feeder capacity. 3. Billed Demand. Billed Demand means the kilowatt (kW) demand used to calculate the customer's demand charge under the applicable rate schedule. Billed Demand shall be based on the highest of the measured Peak Demand, minimum demand, ratcheted demand (where applicable), power factor adjustment, or other provisions of the applicable rate schedule or electric service agreement. 4. City. The City of Georgetown, Texas, [a home rule municipal corporation that owns and operates a municipal electric utility system known as Georgetown Utility Systems]. 5. City's Rules and Regulations. City's ordinances, policies, rate schedules, including description of utility services, billing adjustments, policies, service rules and regulations, and other regulatory measures enacted or adopted by City, including its departments, boards and commissions, as may be amended from time to time by the City in its sole discretion, all said regulations being duly adopted. 6. Connected Load. Connected Load means the combined electrical capacity or rating of the customer's motors, equipment, appliances, devices, and other electric -consuming facilities that are or will be connected to the customer's electrical system, whether expressed in kilowatts (kW), kilovolt -amperes (kVA), horsepower, amperes, or other electrical units, as converted or evaluated by the City. 7. Customer or customer. A person who is currently receiving retail electric service from City in the person's own name or the name of the person's spouse, or the name of an authorized representative of a partnership, corporation, or other legal entity receiving retail electric service from City. 8. Design Load. Design Load means the City's estimate of the customer's expected maximum demand, expressed in kilowatts (M), after applying applicable diversity factors, operating assumptions, and engineering judgment to the customer's Requested Load, Connected Load, and Load Analysis. Design Load may be used to determine initial rate classification, transformer size, service requirements, and other facilities necessary to serve the customer. Installed Capacity. Installed Capacity means the maximum allowed distribution infrastructure capacity, including site -specific infrastructure, designed and installed by City at the Facility and designated to serve the Customer's load requirements, including Peak Demand and energy needs. This capacity ensures sufficient distribution capacity to meet Peak Demand under normal operating conditions. Installed Capacity includes substation and feeder capacity. Installed Capacity may be expressed in kilowatts (kW) or kilovolt -amperes (WA). 10. Load Analysis. Load Analysis means the documentation, engineering review, and evaluation used by the City to determine expected load characteristics, service requirements, rate classification, metering requirements, transformer sizing, system impacts, and any required customer -specific facilities. A Load Analysis may include Requested Load, Connected Load, operating schedules, diversity factors, power factor, motor -starting characteristics, load factor, planned expansions, and other information required by the City. 11. Peak Demand. Peak Demand means the highest Actual Demand recorded for a customer during the applicable billing period, expressed in kilowatts (kW), and measured over a 15-minute interval, or such other interval as established by the City's metering standards. 12. Requested Load. Requested Load means the total electrical load requested by the customer or the customer's representative as part of a service request, Load Analysis, Electric Line Extension, and Electric Metering Policy application, plans, specifications, or other documentation submitted to the City. Requested Load may include existing load, proposed load, future load, and any planned expansion identified by the customer. Sec. 13.04.012. Customer classification and demand determination. A. Customer Classification 1. Regardless of Design Load, Actual Demand, Installed Capacity, or other classification criteria, a customer shall be assigned to the rate schedule applicable to the premises' final intended use, which may differ from the use during construction, as determined by the City from the customer's application and other reasonably required documentation. B. Initial Rate Classification For new or modified service under 2,000 kW, the City shall assign the applicable rate class based on the customer's Design Load, as determined from the customer's Load Analysis, except as otherwise provided herein. 2. For new or modified service with a Design Load of 2,000 kW or greater, the City shall assign the applicable rate class based on the customer's Installed Capacity or Allocated Capacity on the date of initial energization, as determined solely by the City. For Customers requesting service at existing premises, the City shall not automatically assign the prior customer's rate classification. The City shall consider the following in determination the appropriate rate classification: If the new customer's expected use is substantially similar to the prior use, the City may use recent demand history to establish the initial rate classification. ii. If demand history is unavailable or not representative, the City may require a Load Analysis and classify the customer based on Design Load or Installed Capacity, as applicable. Existing meters, transformers, or other service facilities do not determine the customer's rate classification or service entitlement. Page 2 of 27 iii. The City may require the customer, at the customer's expense, to make or fund electric distribution infrastructure changes necessary to provide safe and reliable service and comply with the City's service and engineering standards. iv. The City may reclassify the customer's initial rate classification based on actual usage and Demand data as outlined in Section C below. C. Rate Class Reclassification based on Demand This subsection applies only to customers with a Design Load or Installed Capacity under 2,000 kW. 2. The City shall reclassify a customer to a higher rate class if the customer's Actual Demand exceeds the applicable demand threshold for that rate class in three (3) or more billing periods within a consecutive twelve (12) month period . The City may require the customer, at the customer's expense, to make or fund electric distribution infrastructure changes necessary to provide safe and reliable service and comply with the City's service and engineering standards. Upon customer's request, the City may reclassify a customer to a lower rate class if the customer's Actual Demand remains below the applicable demand threshold for twelve (12) consecutive months. The City may require the customer, at the customer's expense, to make or fund electric distribution infrastructure changes necessary to provide safe and reliable service and comply with the City's service and engineering standards. 4. Reclassification shall be applied prospectively beginning with the next billing cycle following determination by the City and shall not be applied retroactively. 5. A customer shall not operate electric load in excess of its Installed Capacity, Allocated Capacity, contract demand, or other capacity limit established by the City without the City's prior written approval. If a customer exceeds such limit, the City may require load reduction, additional infrastructure, additional credit support, revised forecasts, a revised electric service agreement, payment of all incremental costs, or a separate service arrangement. The customer shall be responsible for all costs, charges, penalties, ERCOT settlement amounts, procurement costs, infrastructure costs, and administrative costs incurred by the City as a result of such excess load. 6. A customer shall not be eligible for a reduction in rate class based on Actual Demand if the customer has incurred two or more delinquencies within the preceding twelve-month period. Sec. 13.04.015. Residential service. A. Availability. This schedule is available to single-phase residential customers for all domestic uses in residences, individual family apartments, and private rooming houses. This schedule is not available to single metered multi -family dwellings. For residential customers other than single-phase, the City, at its sole discretion, may review and apply another appropriate rate schedule for such customer. . Where a portion of a residential unit is used for nonresidential purposes, the appropriate nonresidential service schedule is applicable to all uses of electric service. However, this rate schedule may be applied to the residential portion of such use provided the customer's wiring is so arranged that use of the electric service for residential purposes can be metered separately from the nonresidential use. Service rendered under this rate is subject to the City's Rules and Regulations. B. Net Monthly Rate. 1. Customer Charge: $25.32 per month. 2. Energy Charge: $0.0978 per kWh. 3. Minimum Bill: $25.32 per month. Page 3 of 27 4. Multiple Dwelling Units. Where served under one meter shall be billed under the applicable commercial rate. C. Power Cost Adjustment. The PCA charge under the above rate schedule shall be increased or decreased to reflect the application of a power cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.075. D. Transmission Delivery Cost Adjustment. The TDCA charge under the above rate schedule shall be increased or decreased to reflect the application of a transmission delivery cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.080. E. Sales Taxes. Sales taxes, where applicable, will be charged to the consumer in addition to the above rates. F. Residential customers may request a low-income electric discount that is 30 percent below the current customer charge (base rate) as follows: 1. Request for low-income discount must be made in writing. To qualify for the discount, customer or a permanent resident in the household must participate in the Medicaid Program or such other federal, state, and local government entitlement programs that meet the 200 percent Federal Poverty Income Level (FPIL) eligibility guidelines and are approved by City, and provide verifiable proof of that participation, such as an award letter or other official documentation. 3. Requests for the low-income discount must be renewed annually. Sec. 13.04.018. Net energy metering (NEM) service. A. Availability. Available to residential and small general service customers within the City's electric service area that own distributed energy resource (DER) facilities. The following requirements must be met for customers to be served under NEM: • Customer has executed an interconnection agreement with City, and City has approved their completed net metering service application. • DER facility is customer owned and powered by a renewable resource, including, but not limited to, solar, wind, and geothermal sources. • For all DER facilities approved by the City after October 1, 2020, the DER facility's Installed Capacity must be no greater than ten kW -DC (kilowatts direct current) and receive service at 600 volts or less. • DER facility is located at the customer's premises, or that is appropriately connected to City's electric distribution system, as solely determined by City. B. Metering. For DER installations before June 22, 2021, customers served under NEM will have two electric meters installed by City at the customer's premises: a DER Meter, which measures the total amount of generated electricity from the customer's DER facility, and a bi-directional meter that measures both the volumetric energy and renewable energy - received, as defined herein. These bi-directional meter readings are used for generating the NEM customer's monthly bill. For all DER installations for NEM customers after June 22, 2021, DER meters are not required; only bi-directional meters will be installed. C. Meter Definitions. "Bi-directional meter." An electric meter with separate registers that measures and records, on an interval basis, the flow of electricity from City to the NEM customer (volumetric energy) as well as the flow of electricity from the customer's DER facility to City (renewable energy - received), as applicable. "DER Meter." The DER meter measures the total amount of energy generated by the customer's DER facility. The meter records "renewable energy - generated." Energy Definitions. Page 4 of 27 "Renewable energy generated." The total energy produced by the customer's DER facility for the billing period, as measured and recorded by the DER meter. No charges or credits are associated with the renewable energy - generated. This information is provided to City, and is identified on the customer's bill, for informational purposes only. "Renewable energy received." Any excess metered energy generated from the customer's DER facility that is not used on -site at the customer's premises and flows back to City during a billing cycle. The renewable energy - received is measured by the bi-directional meter and recorded on an interval basis. City pays NEM customers a credit per kilowatt hour of the renewable energy - received. "Volumetric energy." The amount of metered energy delivered by City to the customer's premises during a billing cycle. This value is measured by the bi-directional meter and recorded on an interval basis. NEM customers pay City per kilowatt hour for volumetric energy. Charges for Service Definitions. "Base rate." The base rate is the customer charge for the applicable customer class in which the NEM customer exists. The base rate is a per customer charge on a $/month basis. "Volumetric energy charge." The volumetric energy charge is the energy charge for the applicable customer class in which the NEM customer exists. The volumetric energy charge is applied to the volumetric energy on a $/kWh basis. "Renewable energy received credit." The renewable energy - received credit is an energy rate ($/kWh) applied to the NEM customer's renewable energy - received. City pays NEM customers a credit per kilowatt hour for renewable energy - received. The credit on the customer's bill is subject to the limitations discussed in item I. "Power cost adjustment (PCA)." The PCA charge under this rate schedule shall be increased or decreased to reflect the application of a PCA per kWh of energy delivered by City (volumetric energy) during the billing cycle, as calculated in accordance with Section 13.04.075. "Transmission delivery cost adjustment (TDCA)." The TDCA charge under the above rate schedule shall be increased or decreased to reflect the application of a transmission delivery cost adjustment per kWh of energy delivered by City (volumetric energy), as calculated in accordance with Section 13.04.080. Reserved. G. Monthly Rates for NEM Customers. Rates are subject to change as described herein. Residential Service: 1. Base Rate: $25.32 per month. 2. Volumetric Energy Charge: $0.0978 per kWh. 3. Renewable Energy. The received credit shall be calculated on an annual basis according to the following formula: $ Weighted Avg. Market Price (kWh) + Avg. Transmission Capacity Cost (kWh) Credit (kWh) 1 — Losses (%) Where "weighted avg. market price" represents the previous year's weighted average locational marginal prices coincident with solar producing hours at the Electric Reliability Council of Texas (ERCOT) South Load zone. The periods coincident with ERCOT and/or Public Utility Commission of Texas declared controlled outages and/or grid emergencies are not included in the weighted avg. market price calculation. The "avg. transmission capacity cost" represents the previous year's average transmission -cost -of -service (TCOS) charges ($/kWh) paid by the Utility for transmission, and "losses" represents the most recently calculated value for City's distribution system losses as a percent. 4. PCA: (as determined in Section 13.04.075). Page 5 of 27 5. TDCA: (as determined in Section 13.04.080). Small General Service: 1. Base Rate as a City Electric Customer: $51.05 per month. 2. Volumetric Energy Charge: $0.0921 per kWh. 3. Renewable Energy. The received credit shall be calculated on an annual basis according to the following formula: $ \k Weighted Avg. Market Price $ + Avg. Transmission Capacity Cost (k $ Credit ( kWh) 1 — Losses (%) Where "weighted avg. market price" represents the previous year's weighted average locational marginal prices coincident with solar producing hours at the Electric Reliability Council of Texas (ERCOT) South Load zone. The periods coincident with ERCOT and/or Public Utility Commission of Texas declared controlled outages and/or grid emergencies are not included in the weighted avg. market price calculation. The "avg. transmission capacity cost" represents the previous year's average transmission -cost -of -service (TCOS) charges ($/kWh) paid by the Utility for transmission, and "losses" represents the most recently calculated value for City's distribution system losses as a percent. 4. PCA: (as determined in Section 13.04.075). 5. TDCA: (as determined in Section 13.04.080). Renewable Energy —Received Credit —Annual Update. The renewable energy - received credit will be reviewed and may be adjusted on an annual basis by City according to the formula above. Limit on Renewable Energy —Received Credit. For a billing cycle, and for the purposes of calculating the renewable energy - received credit, the excess renewable energy (kWh) City receives from NEM customers cannot be greater than the volumetric energy (kWh) City delivers to the customer's premises. Renewable energy - received that is in excess of the volumetric energy during the billing cycle is not eligible for compensation to the NEM customer by City. Such excess energy may not be banked by the NEM customer nor rolled over to the following or future billing period(s). Further, such excess energy cannot be utilized to offset other City charges on the NEM customer bill. Sales Taxes. Sales taxes, where applicable, will be charged to the customer, as appropriate, in addition to the above rates. Sec. 13.04.020. Small general service. A. Availability. Applicable to nonresidential customers whose Actual Demand is equal to or less than 49 kilowatts (kW) and whose uses are not covered by another specific rate schedule. B. Net Monthly Rate. 1. Customer Charge: $51.05 per month. 2. Energy Charge: $0.0921 per kWh. 3. Minimum Bill: $51.05 per month. C. Power Cost Adjustment. The PCA charge under the above rate schedule shall be increased or decreased to reflect the application of a power cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.075. D. Transmission Delivery Cost Adjustment. The TDCA charge under the above rate schedule shall be increased or decreased to reflect the application of a transmission delivery cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.080. Page 6 of 27 E. Sales Taxes. Sales taxes, where applicable, will be charged to the consumer in addition to the above rates. Sec. 13.04.025. School services. A. Availability. Applicable to electric service provided to a school, defined as an educational institution that is recognized, accredited, or otherwise authorized by the State of Texas, including but not limited to: 1. Public school districts and open -enrollment charter schools governed under the Texas Education Code; and 2. Institutions of higher education recognized by the Texas Higher Education Coordinating Board Eligibility for service under this rate shall be determined by the City based on documentation demonstrating such recognition or authorization under applicable state law. Electric service provided to facilities or portions of facilities used for non -educational, commercial, residential, or revenue -generating purposes shall be separately metered and billed under the applicable rate schedule. If such uses are not separately metered, the City may determine the appropriate rate classification. B. Net Monthly Rate. 1. Customer Charge: $204.02 per month. 2. Energy Charge: $0.1174 per kWh. 3. Minimum Bill: $204.02 per month. C. Power Cost Adjustment. The PCA charge under the above rate schedule shall be increased or decreased to reflect the application of a power cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.075. D. Transmission Delivery Cost Adjustment. The TDCA charge under the above rate schedule shall be increased or decreased to reflect the application of a transmission delivery cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.080. E. Sales Taxes. Sales taxes, where applicable, will be charged to the consumer in addition to the above rates. Sec. 13.04.030. Municipal water and wastewater pumping service. A. Availability. Applicable to City -owned facilities with electric service furnished for water and wastewater pumping. Service rendered under this rate is subject to the City's Rules and Regulations. B. Net Monthly Rate. 1. Customer Charge: $199.10 per month. 2. Energy Charge: $0.04600 per kWh. 3. Demand Charge: $19.99 per kW per month. 4. Minimum Bill: $199.10 per month. C. Power Cost Adjustment. The PCA charge under the above rate schedule shall be increased or decreased to reflect the application of a power cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.075. D. Transmission Delivery Cost Adjustment. The TDCA charge under the above rate schedule shall be increased or decreased to reflect the application of a transmission delivery cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.080. E. Primary Voltage Discount. Page 7 of 27 Primary Voltage is the nominal electrical voltage of 24.9 kV / 14.4 kV, expressed as a ratio of phase -to -phase voltage over phase -to -neutral voltage, at which the City delivers three-phase medium -voltage AC power to the Point of Service, measured immediately upstream of the Customer -owned transformation equipment utilized to step down such electrical energy for final utilization. A Primary Voltage Customer is a customer that receives electric service directly from the City's electric distribution system at 24.9 kV / 14.4 kV. 1. Applicable to Municipal water and wastewater pumping service locations that receive electric service at primary distribution voltage and that own, operate, and maintain all facilities on the customer side of the point of interconnection, including but not limited to transformation, protection, and distribution equipment. 2. Monthly Demand Discount Rate. Primary voltage customers' Actual Demand will be reduced (credited) by $2.24/kW. F. Sales Taxes. Sales taxes, where applicable, will be charged to the consumer in addition to the above rates. Sec. 13.04.035. Large general service. A. Availability. Applicable to nonresidential customers whose Actual Demand is equal to or greater than 50 kilowatts (kW) but less than 499 kilowatts (kW), and whose uses are not covered by another specific rate schedule, as determined in accordance with Section 13.04.012. B. Net Monthly Rate. 1. Customer Charge: $178.68 per month. 2. Energy Charge: $0.0668 per kWh. 3. Demand Charge: $11.23 per kW per month, but not less than $561.50 per month. 4. Minimum Bill: $740.18 per month. C. Power Cost Adjustment. The PCA charge under the above rate schedule shall be increased or decreased to reflect the application of a power cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.075. D. Transmission Delivery Cost Adjustment. The TDCA charge under the above rate schedule shall be increased or decreased to reflect the application of a transmission delivery cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.080. E. Minimum Bill. The minimum bill for Large general service shall consist of the customer charge plus the minimum Billed Demand charge. F. Minimum Billed Demand. The minimum demand for the Large general service class is 50 kW. G. Sales Taxes. Sales taxes, where applicable, will be charged to the consumer in addition to the above rates. Sec. 13.04.040. Commercial and industrial (M). A. Availability. Applicable to nonresidential customers whose Actual Demand is equal to or greater than 500 kilowatts (kW) but less than 1,999 kilowatts (kW), and whose Installed Capacity is less than 2,000 kVa, and whose uses are not covered by another specific rate schedule, as determined in accordance with Section 13.04.012. B. Net Monthly Rate. 1. Customer Charge: $357.35 per month. 2. Energy Charge: $0.0577 per kWh. Page 8 of 27 3. Demand Charge: $16.34 per kW per month, but not less than $8,170.00 per month. 4. Minimum Bill: $8,527.35 per month. C. Power Cost Adjustment. The PCA charge under the above rate schedule shall be increased or decreased to reflect the application of a power cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.075. D. Transmission Delivery Cost Adjustment. The TDCA charge under the above rate schedule shall be increased or decreased to reflect the application of a transmission delivery cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.080. E. Minimum Bill. The minimum bill for commercial and industrial service shall consist of the customer charge plus the minimum demand charge. F. Minimum Billed Demand. The minimum demand for the commercial and industrial class is 500 kW. G. Sales Taxes. Sales taxes, where applicable, will be charged to the consumer in addition to the above rates. Sec. 13.04.045. Large commercial and industrial (M) service A. Availability. Applicable to non-residential customers whose Installed Capacity or Allocated Capacity is equal to or greater than 2,000 kilowatts (kW) but less than 10,000 kilowatts (kW), as determined in accordance with Section 13.04.012. The City reserves the right in its sole discretion to require certain customers eligible for this rate schedule to enter into an electric service agreement with the City ("Electric Service Agreement"). B. Monthly Rate. 1. Customer Charge: $520.71 per month. 2. Energy Charge: $0.0543 per kWh. 3. Demand Charge: $19.65 per kW per month but not less than $39,300.00 per month. 4. Minimum Bill: $39,820.71 per month. C. Power Cost Adjustment. The power cost adjustment charge under the above rate schedule shall be increased or decreased to reflect the application of a power cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.075. D. Transmission Delivery Cost Adjustment. The transmission delivery cost adjustment charge under this rate schedule shall be increased or decreased to reflect the application of a transmission delivery cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.080. E. Minimum Bill. The minimum bill for large commercial and industrial service shall consist of the customer charge plus the minimum demand charge. F. Minimum Billed Demand. The minimum demand for the large commercial and industrial class is 2,000 kW. G. Power Factor. Should the power factor be lower than 0.95 lagging during the monthly peak 15-minute interval, the City may adjust the Billed Demand (kW) by the ratio of target power factor in the numerator (0.95) divided by the actual power factor in the denominator (less than 0.95). If the power factor ratio is greater than a value of 1.0, it will be multiplied by the billing cycle's Billed Demand applicable to the customer. H. Primary Voltage Discount. Primary Voltage is the nominal electrical voltage of 24.9 kV / 14.4 kV, expressed as a ratio of phase -to -phase voltage over phase -to -neutral voltage, at which the City delivers three-phase medium -voltage AC power to the Point of Service, measured immediately upstream of the Customer -owned transformation equipment utilized to step down such electrical energy for final utilization. Page 9 of 27 A Primary Voltage Customer is a customer that receives electric service directly from the City's electric distribution system at 24.9 kV / 14.4 kV. 1. Applicable to large commercial and industrial customers that receive electric service at primary distribution voltage and that own, operate, and maintain all facilities on the customer side of the point of interconnection, including but not limited to transformation, protection, and distribution equipment. 2. Monthly Demand Discount Rate. Primary voltage customers' Actual Demand will be reduced (credited) by $2.11/kW. 3. Minimum Bill. The minimum bill for primary voltage customers will be based on the minimum bill for their applicable customer class, as described herein. To the extent that the minimum bill includes the demand charge, calculation of the demand charge will reflect the applicable monthly demand discount rate. 4. Primary Voltage Discount Update. The primary voltage discount will be reviewed and may be adjusted periodically as determined by the City. I. Sales Taxes. Sales taxes, where applicable, will be charged to the consumer in addition to the above rates. Sec. 13.04.0451. Month -to -Month Large Commercial & Industrial Service. A. Availability. Applicable to any customer who is required to enter into an Electric Service Agreement and fails to do so within a reasonable period of time, as determined by the City. The customer shall be subject to all provisions herein, as well as the following applicable rates. The customer shall be billed under the Month -to -Month Large Commercial & Industrial Service rates set forth below. Such rates are intended to recover the City's costs, risks, and administrative burdens associated with serving a very large load without agreed forecasting, credit support, operational controls, and wholesale market protections. Month -to - Month Large Commercial & Industrial Service shall continue until an electric service agreement is executed by both the City and the customer or service is otherwise terminated in accordance with this Article and the City's Rules and Regulations. These rates will be in effect for Customer's electric service until such time as an Electric Service Agreement is signed by both Customer and City, at which time the rates provided in the Electric Service Agreement will apply. The City will make a good -faith effort to complete its review of the Electric Service Agreement and obtain approval in a timely manner. B. Monthly Rate. 1. Customer Charge: $520.71 per month. 2. Energy Charge: $0.08755 per kWh. 3. Demand Charge: $19.65 per kW per month subject to Billed Demand as outlined in Section F below. 4. Minimum Bill: $39,820.71 per month. C. Power Cost Adjustment. The power cost adjustment charge under the above rate schedule shall be increased or decreased to reflect the application of a power cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.075. D. Transmission Delivery Cost Adjustment. The transmission delivery cost adjustment charge under this rate schedule shall be increased or decreased to reflect the application of a transmission delivery cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.080. E. Minimum Bill. The minimum bill for large commercial and industrial service shall consist of the customer charge plus the minimum demand charge. F. Minimum Billed Demand. The minimum demand for the large commercial and industrial class is 2,000 kW. Page 10 of 27 G. Power Factor. Should the power factor be lower than 0.95 lagging during the monthly peak 15-minute interval, the City may adjust the Billed Demand (kW) by the ratio of target power factor in the numerator (0.95) divided by the actual power factor in the denominator (less than 0.95). If the power factor ratio is greater than a value of 1.0, it will be multiplied by the billing cycle Billed Demand applicable to the customer. H. Primary Voltage Discount. Primary Voltage is the nominal electrical voltage of 24.9 kV / 14.4 kV, expressed as a ratio of phase -to -phase voltage over phase -to -neutral voltage, at which the City delivers three-phase medium -voltage AC power to the Point of Service, measured immediately upstream of the Customer -owned transformation equipment utilized to step down such electrical energy for final utilization. A Primary Voltage Customer is a customer that receives electric service directly from the City's electric distribution system at 24.9 kV / 14.4 kV. 1. Applicable to large commercial and industrial customers that receive electric service at primary distribution voltage and that own, operate, and maintain all facilities on the customer side of the point of interconnection, including but not limited to transformation, protection, and distribution equipment. 2. Monthly Demand Discount Rate. Primary voltage customers' Actual Demand will be reduced (credited) by $2.11/kW. 3. Minimum Bill. The minimum bill for primary voltage customers will be based on the minimum bill for their applicable customer class, as described herein. To the extent that the minimum bill includes the demand charge, calculation of the demand charge will reflect the applicable monthly demand discount rate. 4. Primary Voltage Discount Update. The primary voltage discount will be reviewed and may be adjusted, as determined by the City. Sales Taxes. Sales taxes, where applicable, will be charged to the consumer in addition to the above rates. Sec. 13.04.046. Very large commercial and industrial (M) service. A. Availability 1. Applicable to nonresidential customers whose Installed Capacity is equal to or greater than 10,000 kW but less than 49,999 kW, including classification based on Installed Capacity where applicable. 2. Customers served under this rate shall be required to receive electric service directly from City's electric distribution system at "Primary Voltage" and they are eligible for the "Primary Voltage Discount" "Primary Voltage" is the nominal electrical voltage of 24.9 kV / 14.4 kV, expressed as a ratio of phase -to -phase voltage over phase -to -neutral voltage, at which the City delivers three-phase medium -voltage AC power to the Point of Service, measured immediately upstream of the Customer -owned transformation equipment utilized to step down such electrical energy for final utilization. 3. Customers served under this rate shall be required, as determined by the City, to enter into an electric service agreement, provide load forecasts, or meet additional operational, metering, or financial requirements necessary to support service to large loads and participation in wholesale power markets. 4. Customers shall enter into an Electric Service Agreement (ESA) with a maximum term of three (3) years, including any renewals, unless terminated in accordance with the ESA. In order to maintain a guarantee of future electric service capacity, the ESA must be signed, and the customer must comply with all Line Extension policy requirements and other obligations required within the ESA. Page 11 of 27 5. Asa condition of initial or continued service under this rate, the City may require, prior to energization, execution of an electric service agreement, completion of all required studies, installation of required metering and telemetry, satisfaction of all credit and performance assurance requirements, payment of all applicable fees or contributions, and demonstration that the customer's operation will not adversely affect system reliability or other customers. 6. If a customer's Installed Capacity exceeds 49,999 kW, the City may in its sole discretion require the customer to take service under a separate service arrangement and a separate rate schedule. 7. Service rendered under this rate is subject to the City's Rules and Regulations, provided that Section 13.04.230 shall not apply. 8. If Customer fails to utilize the full Initial Infrastructure Capacity, the full Additional Infrastructure Capacity, or the full amount of any Expansion Request for six ( 6) consecutive months during the applicable Service Agreement for Electric Service period, then to the extent such capacity is not utilized, City shall have the right in its sole discretion to use the available feeder and substation capacity to serve other customers. Customer's utilization of capacity shall be the maximum kilowatt demand established by Customer for any fifteen (15) minute period during the month, as indicated or recorded by a demand meter. B. Energy Forecast. By the tenth of each month prior to and after beginning service, Customer must submit to the City an energy forecast of its projected energy usage for the following six months. This energy forecast is a projection of the future forecasted energy consumption by Customer and shall be in the form of an hourly energy profile of expected energy consumption (kWh) for each hour of the following six months. C. Failure to Submit Energy Forecast. Any Customer who fails to submit an energy forecast when due shall be subject to interruption or termination of electric service, and any other remedies available to the City under its Rules and Regulations. In addition, the City shall have the right to forecast the customers' projected energy load for the energy forecast term, subject to other provisions in this Section 13.04.046. D. Invoices. Invoices are due and payable immediately upon receipt and considered late if not paid within five days after receipt. The City immediately applies any cash prepayment amount (defined below) or draws on any letter of credit provided by the customer for any late or unpaid amounts owed to the City by the customer, or take any other action provided for under the City's Rules and Regulations. If a Customer needs additional time to pay an invoice, they may post an additional Prepayment Amount to ensure minimum required prepayment balances are constantly maintained. VLC&I customers shall enroll in and maintain electronic billing (e-bill) for all electric service accounts. Delivery of bills by mail shall not extend, delay, or otherwise affect the date a bill is issued, received, or due. E. Prepayment Amount. Prior to activation of electric service, customer shall provide to the City a minimum cash prepayment amount ("prepayment amount") equal to three months of the highest projected total cost of energy deliveries pursuant to the Electric Service Agreement and this rate schedule, including the customer charge, energy charge, billed demand, power cost adjustment, energy rate rider, transmission delivery cost adjustment, and any other authorized charges. The billed demand shall be calculated pursuant to Section 0 below, the applicable billed demand multiplied by three months or such additional period of time as the City may require ("prepayment term"). The City shall apply the prepayment amount monthly to the customer's invoice for electric service, and the customer shall pay any amounts owed to the City in addition to the prepayment amount and replenish the prepayment amount each month equal to the amount of the then -current prepayment amount for the then -current prepayment term. The City reserves the right to require additional amounts above the prepayment amount based on the creditworthiness of the customer, energy market volatility, previous payment defaults, or business history of the customer, each as determined by the City in its sole discretion. Any prepayment amounts under this Section 13.04.046 (Very large commercial and industrial service) shall not bear interest and shall be applied to each invoice and replenished by the customer in accordance with this subsection (E). The prepayment amount shall remain in place until December 31 of the year following the year of the Page 12 of 27 termination date, and Customer's payment in full to City of verifiably documented charges attributable to providing the service prior to termination of this Agreement, including, but not limited to demand charges assessed by ERCOT for usage during peak demand periods. Credit Support. In addition to the prepayment amount in Section E, Customer shall also provide performance assurance pursuant to Section G herein in an amount equal to or greater than three months of the projected revenues to City based on the highest three months of customer's energy forecast. The performance assurance shall remain in place until December 31 of the year following the year of the termination date, and customer's payment in full to City of verifiably documented charges attributable to providing the service prior to termination of this agreement, including, but not limited to demand charges assessed by ERCOT for usage during peak demand periods. G. Performance Assurance. Customer shall provide to the City either an unconditional irrevocable letter of credit ("letter of credit") or a form of guarantee approved by City ("parental guarantee") letter of credit and parental guarantee are collectively referred to as "performance assurance." Both the letter of credit and the parental guarantee must: (1) be made payable to the City; (2) require at least 60 days written notice to the City upon nonrenewal or termination; and (3) allow for immediate draw by the City for the nonpayment of any invoice by the due date or any other payment default by customer. In the event the City applies all or part of the performance assurance related to any late payment or nonpayment by customer, or any other payment default by the customer, the City may immediately request additional performance assurance from customer in order for the continuance of electric service by the City. 1. The letter of credit shall comply with V.T.C.A., Business and Commerce Code § 5.106 issued by a bank or financial institution with a minimum credit rating of A -from S&P or Fitch, or a minimum rating of A3 from Moody, and that has a physical location or address in the United States in which the letter of credit can be drawn, and that is otherwise acceptable to the City in its sole discretion. The City reserves the right in its sole discretion to require an increase in the amount of the letter of credit, including, but not limited to an increase based on market volatility, creditworthiness of the customer, previous payment defaults, or business history of the customer. 2. A Customer may only provide a parental guarantee if the corporate, or other entity, providing such guarantee has an investment grade rating at least one notch above Baa3 by Moody's, BBB -by S&P Global or BBB- by Fitch Ratings. In the event that the entity providing the parental guarantee drops below investment grade, customer must replace the parental guarantee with a letter of credit within two business days. The City reserves the right in its sole discretion to require an increase in the amount of the parental guarantee, including, but not limited to, an increase based on market volatility, creditworthiness of the customer, previous payment defaults, or business history of the customer. H. Equipment. Customers under this Rate Ordinance shall also be responsible for all the costs including, but not limited to the cost of any and all additional equipment that the City's City Manager, City's General Manager of Electric Utilities ("General Manager") or each of their respective designees, determines is needed, including, but not limited to advanced metering equipment, to manage the customer's energy load and usage to ensure reliable energy service to all customers of the City. City shall have no obligation to provide redundant feeders, transformer redundancy, automatic transfer capability, alternate feeder supply, or service from another substation except pursuant to a written agreement. Curtailment Events. Customer understands and agrees that it has no guarantee of an uninterrupted supply of power. City shall have the right to curtail or interrupt delivery of energy to customer (i) in response to curtailment instructions from ERCOT as a result of imminent system reliability need; (ii) during periods of force majeure (defined herein); (iii) during unplanned outages, including failure of transmission or distribution facilities or other equipment, partial or complete forced outage, breakage of or damage to machinery or equipment, or (iv) during planned outages as agreed by City and customer ("curtailment event"). "Force majeure" means an event or circumstance which (i) prevents a party from performing its Page 13 of 27 obligations under this Rate Ordinance, (ii) which event or circumstance is beyond the reasonable control of such party, (iii) was not reasonably foreseeable by such party, or if reasonably foreseeable could not have been overcome with the exercise of due diligence, (iv) is not the result of such party's negligence or fault, and (v) which by the exercise of due diligence, such party is unable to overcome or avoid or cause to be avoided. If customer is notified of a curtailment event and fails to comply with the curtailment event directives received from City, customer shall be liable to City for any uplift charges, securitization charges, penalties, fines or any other ERCOT charges related to a curtailment event imposed on City (directly or indirectly) as a result of customer's failure to comply with the curtailment event notice, which is in addition to any and all costs and fees for the provision of electric service during the curtailment event under this Rate Ordinance and -any and all related ERCOT fees, settlement costs, sub-QSE fees, ERCOT load ratio share charges, ERCOT administration fees, Electric Reliability Organization fees, ERCOT uplifts to load, ERCOT miscellaneous invoices (collectively, "ERCOT Settlement Amounts"), and any other charges, fees and costs assessed or implemented by any Governmental Authority. "Governmental Authority" means (i) any federal, state, local, municipal, or other government or (ii) any other governmental, quasi - governmental, regulatory or administrative agency, commission, or other authority (including the Texas Attorney General, PUCT, ERCOT, Federal Energy Regulatory Commission, NERC, or Texas Reliability Entity) lawfully exercising or entitled to exercise any administrative, executive, judicial, legislative, police, policy, regulatory, or taxing authority or power. "PUCT" means the Public Utility Commission of Texas. City shall have the right, but not the obligation, to disconnect the electricity supply to Customer to force compliance with the curtailment event directives, subject to any shutdown requirements designed to protect the customer facilities or the ERCOT grid. Subject to the aforementioned notice and shutdown requirements, City shall have no liability for exercising such right, nor shall customer be excused from any damages that may arise in the case that City fails to do so. For purposes of clarity, all customers served by City are subject to curtailment events. J. Very Large Load Account Set -Up Fee. Prior to the commencement of service, customer shall pay a nonrefundable account set-up fee in the amount of $27,349.00, which may be updated from time to time by the City, for installation of ERCOT EPS meter(s) and any other initiation, installation, or other fees levied by ERCOT or otherwise incurred by the City as a result of providing energy service to the customer. K. Monthly Rate. Customer Charge: $8,125 per month. Energy Charge: $0.0543 per kWh. Demand Charge: $19.65 per kW per month subject to Billed Demand as outlined in Section 0 below. L. Power Cost Adjustment. The power cost adjustment charge under the above rate schedule shall be increased or decreased to reflect the application of a power cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.075. M. Energy Rate Rider. In addition to the charges identified in K and L, Customers shall pay the energy rate rider ($/kWh) ("ERR") for all energy consumed. The City Manager, General Manager or their respective designees are responsible for making periodic adjustments to the ERR, which will be based upon historical actual power supply costs since the implementation of the energy rate rider and six months of forecasted future costs to serve the customers in the very large commercial and industrial service class. Changes to the ERR shall have the objective of maintaining a positive cumulative ERR account balance. The energy rate rider shall be calculated pursuant to the following equation: ERR ($/kWh) _ ((Power Costs Energy Revenues) + (TAB-AAl3))/TL Where: ERR = New Energy Rate Rider Page 14 of 27 Power Costs = All forecasted power supply costs for the VLC&I class during the 6-month forecast period, broken down into five components: 1. Net Settlement of VLC&I Bilateral Hedges 2. Forecasted VLC&I DAM/RT energy purchases 3. Load ratio share (LRS) portion of net settlement of existing long term PPA contracts, including: a. Net settlement of PPA contracts b. Settlement of CRR hedges c. REC revenues d. Resource QSE fees and resource administrative charges. e. PTP obligations 4. ERCOT Fees and Ancillary Services, including: a. Ancillary services b. Other ERCOT fees c. LRS and/or directly allocated CARD revenues. 5. Miscellaneous Costs, including: a. LRS and/or directly allocated allocation of purchased power consulting costs b. LRS and/or directly allocated allocation of ERCOT annual membership fee c. LRS and/or directly allocated allocation of quarterly ERO fee d. LRS and/or directly allocated allocation of securitization costs e. Any other additional unrecovered costs that are incurred to provide electric service to VLC&I customers. Energy Revenues = Forecasted revenues from the energy charge for the VLC&I class during the 6-month forecast period. Equal to the energy charge multiplied by the forecasted load. TAB = Target Account Balance. Equal to the highest month of forecasted energy costs for the VLC&I class in the 12 months following the rate update. AAB = Actual Account Balance. Equal to the cumulative operating income from the collection of the Energy Rate Rider between inception of the ERR and the end of the operating month preceding the ERR calculation update. Operating income for historical months is defined as Energy Revenues plus ERR revenues minus Power Costs for each historical month. TL = Total Load. Equal to the forecasted VLC&I energy sold during the 6-month forecast period. The ERR may not be less than zero. The City Manager, General Manager or their respective designees are responsible for making periodic adjustments to the ERR. N. Ratcheted Demand. In the event that the actual monthly peak demand of the customer exceeds (i) 80 percent of the installed capacity or (ii) the minimum demand as defined in the Electric Service Agreement, such new higher peak demand shall be used to determine the billed demand and shall be applicable for a period of 12 consecutive months from the month in which the highest peak demand is measured ("demand ratchet"). The City may establish procedures and methodologies necessary to administer the Demand Ratchet in a consistent and nondiscriminatory manner. O. Billed Demand. The billed demand shall be the greater of: 1. The measured maximum 15-minute demand in kilowatts (kW) recorded during the billing period, or 2. The contract minimum demand, if applicable, or 3. The Demand Ratchet, if specified in Section N of this rate schedule. Billed Demand may be adjusted for power factor if the actual power factor falls below the threshold specified in this tariff. Page 15 of 27 Transmission Delivery Cost Adjustment. The transmission delivery cost adjustment charge under this rate schedule shall be increased or decreased to reflect the application of a transmission delivery cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.080. Q. Minimum Billed Demand. The minimum demand charge shall be 80 percent of the Installed Capacity, or as otherwise provided in the Electric Service Agreement between customer and City. Power Factor. If the customer's power factor during a billing cycle is less than 0.95 lagging during the monthly peak 15-minute interval, the City may adjust the Billed Demand (kW) by applying a multiplier. This multiplier is calculated by dividing the target power factor (0.95) by the customer's actual power factor (which is less than 0.95). The resulting ratio will be multiplied by the Billed Demand for that billing cycle. S. Primary Voltage Discount. "Primary Voltage" is the nominal electrical voltage of 24.9 kV / 14.4 kV, expressed as a ratio of phase -to - phase voltage over phase -to -neutral voltage, at which the City delivers three-phase medium -voltage AC power to the Point of Service, measured immediately upstream of the Customer -owned transformation equipment utilized to step down such electrical energy for final utilization. A "Primary Voltage Customer" is a customer that receives electric service directly from City's electric distribution system at 24.9 kV / 14.4 kV. 1. Applicable to very large commercial and industrial customers that receive electric service at primary distribution voltage and that own, operate, and maintain all facilities on the customer side of the point of interconnection, including but not limited to transformation, protection, and distribution equipment. 2. Monthly Demand Discount Rate. The demand charge for a Primary Voltage Customer shall be reduced by $2.11 per kW of Actual Demand. T. Minimum Bill. The monthly minimum bill amount related to any customer whose load capacity is between 10,000 kW and less than 49,999 kW shall be an amount equal to the sum of the customer charge, the Billed demand charge and any other authorized charges. U. Sales Taxes. Sales taxes, where applicable, will be charged to Customer in addition to the above rates. Sec. 13.04.0461. Month -to -Month Very Large Commercial & Industrial Service. A. Availability: If a customer eligible for service under this section receives service without an executed electric service agreement, whether due to expiration, refusal, failure to execute, or other circumstance, the customer shall be billed under the Month -to -Month Very Large Commercial & Industrial Service rates set forth below. Such rates are intended to recover the City's costs, risks, and administrative burdens associated with serving a very large load without agreed forecasting, credit support, operational controls, and wholesale market protections. Month -to -Month Very Large Commercial & Industrial Service shall continue until an electric service agreement is executed by both the City and the customer or service is otherwise terminated in accordance with this Article and the City's Rules and Regulations. These rates will be in effect for Customer's electric service until such time as an Electric Service Agreement is signed by both Customer and City, at which time the rates provided in the Electric Service Agreement will apply. The City will make a good faith effort to complete its review of the Electric Service Agreement and obtain approval in a timely manner. B. Monthly Rate: 1. Customer Charge: $8,125 per month. 2. Energy Charge: $0.08755 per kWh. 3. Demand Charge: $19.65 per kW per month subject to Billed Demand as outlined in Section F below. Page 16 of 27 C. Power Cost Adjustment. The power cost adjustment charge under the above rate schedule shall be increased or decreased to reflect the application of a power cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.075. D. Energy Rate Rider. In addition to the charges identified in B and C, Customers shall pay the energy rate rider ($/kWh) ("ERR") for all energy consumed. E. Ratcheted Demand. In the event that the actual monthly peak demand of the customer exceeds (i) 80 percent of the installed capacity or (ii) the minimum demand as defined in the Electric Service Agreement, such new higher peak demand shall be used to determine the billed demand and shall be applicable for a period of 12 consecutive months from the month in which the highest peak demand is measured ("demand ratchet"). The City may establish procedures and methodologies necessary to administer the Demand Ratchet in a consistent and nondiscriminatory manner. F. Billed Demand. The billed demand shall be the greater of: 1. The measured maximum 15-minute demand in kilowatts (kW) recorded during the billing period, or 2. The contract minimum demand, if applicable, or 3. The Demand Ratchet, if specified in Section E of this rate schedule. G. Billed Demand may be adjusted for power factor if the actual power factor falls below the threshold specified in this tariff. H. Transmission Delivery Cost Adjustment. The transmission delivery cost adjustment charge under this rate schedule shall be increased or decreased to reflect the application of a transmission delivery cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.080. I. Minimum Billed Demand. The minimum demand charge shall be 80 percent of the Installed Capacity or as otherwise provided in the Electric Service Agreement between customer and City. J. Minimum Bill. The monthly minimum bill amount related to any customer whose load capacity is between 10,000 kW and less than 49,999 kW shall be an amount equal to the sum of the customer charge, Billed demand charge, and any other authorized charges. J. Primary Voltage Discount. Primary Voltage is the nominal electrical voltage of 24.9 kV / 14.4 kV, expressed as a ratio of phase -to -phase voltage over phase -to -neutral voltage, at which the City delivers three-phase medium -voltage AC power to the Point of Service, measured immediately upstream of the Customer -owned transformation equipment utilized to step down such electrical energy for final utilization. A Primary Voltage Customer is a customer that receives electric service directly from the City's electric distribution system at 24.9 kV / 14.4 kV. 1. Applicable to large commercial and industrial customers that receive electric service at primary distribution voltage and that own, operate, and maintain all facilities on the customer side of the point of interconnection, including but not limited to transformation, protection, and distribution equipment. 2. Monthly Demand Discount Rate. Primary voltage customers' Actual Demand will be reduced (credited) by $2.11/kW. 3. Minimum Bill. The minimum bill for primary voltage customers will be based on the minimum bill for their applicable customer class, as described herein. To the extent that the minimum bill includes the demand charge, calculation of the demand charge will reflect the applicable monthly demand discount rate. 4. Primary Voltage Discount Update. The primary voltage discount will be reviewed and may be adjusted, as determined by the City. Page 17 of 27 Power Factor. If the customer's power factor during a billing cycle is less than 0.95 lagging during the monthly peak 15-minute interval, the City may adjust the Billed Demand (kW) by applying a multiplier. This multiplier is calculated by dividing the target power factor (0.95) by the customer's actual power factor (which is less than 0.95). The resulting ratio will be multiplied by the Billed Demand for that billing cycle. K. Sales Taxes. Sales taxes, where applicable, will be charged to the consumer in addition to the above rates. Sec. 13.04.050. Electric vehicle (EV) charger service. A. Availability. 1. Applicable to nonresidential customers operating electric vehicle charging infrastructure whose design load is equal to or greater than 500 kW but less than 2,000 kW during any billing period, as determined in accordance with Section 13.04.012. 2. This rate is available only where the customer's electric service is primarily used to supply electric vehicle charging load, as determined by the City. 3. Customers must provide sub metered or equivalent data, in a form and frequency acceptable to the City, sufficient to identify electric vehicle charging load and support rate administration. 4. If a customer does not meet the requirements of this section, the City may require the customer to take service under the otherwise applicable rate schedule. B. Net Monthly Rate. 1. Customer Charge: $357.35 per month. 2. Energy Charge: $0.0577 per kWh. 3. Demand Charge: $16.34 per kW per month, applied to Billed Demand. Billed Demand. The Billed Demand for each billing period shall be the greatest of: 1. The customer's Actual Demand, as defined in Section 13.04.012; 2. Five hundred kilowatts (500 kW); or 3. The Ratcheted Demand. Ratcheted Demand. The Ratcheted Demand shall be equal to 80 percent of the highest Demand recorded during the most recent twelve (12) billing periods. Once established, such Ratcheted Demand shall remain in effect for twelve (12) consecutive billing months from the month in which the highest Demand is measured. iii. Initial Demand Charge. For a new customer or a customer without twelve (12) months of demand history, the Billed Demand shall be the greater of the customer's Actual Peak Demand or the customer's Design Load, as determined by the City. 4. Minimum Bill: The minimum bill shall consist of the customer charge plus the minimum demand charge. C. Power Cost Adjustment. The PCA charge under the above rate schedule shall be increased or decreased to reflect the application of a power cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.075. D. Transmission Delivery Cost Adjustment. The TDCA charge under the above rate schedule shall be increased or decreased to reflect the application of a transmission delivery cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.080. E. Sales Taxes. Sales taxes, where applicable, will be charged to the consumer in addition to the above rates. Page 18 of 27 Sec. 13.04.055. Municipal. A. Availability. Applicable to City -owned and operated facilities whose uses are not covered by a specific rate schedule. Service rendered under this rate is subject to the City's Rules and Regulations. B. Net Monthly Rate. 1. Customer Charge: $134.77 per month. 2. Energy Charge: $0.0715 per kWh. 3. Minimum Bill: $134.77 per month. C. Power Cost Adjustment. The PCA charge under the above rate schedule shall be increased or decreased to reflect the application of a power cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.075. D. Transmission Delivery Cost Adjustment. The TDCA charge underthe above rate schedule shall be increased or decreased to reflect the application of a transmission delivery cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.080. E. Sales Taxes. Sales taxes, where applicable, will be charged to the consumer in addition to the above rates. Sec. 13.04.060. Power Pedestal service. A. Availability. This rate is available for electric service provided through temporary or permanent power pedestal installations used to supply electricity for temporary, intermittent, or seasonal uses, including but not limited to festivals, public events, and decorative lighting. This rate shall apply only where such service: 1. Is provided through pedestal -type distribution infrastructure designed to serve multiple temporary or variable loads; and 2. cannot be reasonably billed to end users under another applicable rate schedule; and 3. Does not qualify for service under any other established rate schedule based on the nature of the load, metering configuration, or customer classification, as determined by the City. This rate is intended for unique service configurations where standard rate schedules are not practicable. The City reserves the right to determine eligibility for service under this rate. B. Net Monthly Rate. 1. Customer Charge: $0.00 per month. 2. Energy Charge: $0.1205 per kWh. 3. Minimum Bill: $0.00 per month. C. Power CostAdjustment. The PCA charge under the above rate schedule shall be increased or decreased to reflect the application of a power cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.075. D. Transmission Delivery CostAdjustment. The TDCA charge under the above rate schedule shall be increased or decreased to reflect the application of a transmission delivery cost adjustment per kWh of energy used, calculated in accordance with Section 13.04.080. E. Sales Taxes. Sales taxes, where applicable, will be charged to the consumer in addition to the above rates. Page 19 of 27 Sec. 13.04.065. Retail outdoor lighting service. A. Applicability. This rate applies to all unmetered retail outdoor lighting services installed on the customer premises, including municipal premises. B. Installation and maintenance. The customer must request in writing, and the City must approve in writing, any installation of retail outdoor lighting to be installed on the customer's premises. Further, the customer must pay for all costs associated with installation, including, but not limited to all materials, labor, and installation costs. For new installations, a customer must agree to a term of service of not less than one year. The City reserves the right in its sole discretion to refuse or discontinue service at locations where excessive maintenance or lamp replacements occur. The City will maintain all lighting facilities incidental to providing this service. C. Billing. Customer shall be billed monthly for retail outdoor lighting service as set forth in the monthly rates in Subsection D. Service rendered under this rate is subject to the City's Rules and Regulations. D. Monthly rate. High pressure sodium (HPL) lighting: 1. 100 watt HPL or equivalent—$8.50 per month, per light. 2. 200 watt HP or equivalent L—$14.50 per month, per light. 3. 250 watt HPL or equivalent—$16.70 per month, per light. 4. 400 watt HPL or equivalent—$23.50 per month, per light. E. Power cost adjustment. The PCA charge under the above rate schedule shall be increased or decreased to reflect the application of a power cost adjustment per kWh of energy used or estimated, calculated in accordance with Section 13.04.075. F. Transmission delivery cost adjustment. The TDCA charge under the above rate schedule shall be increased or decreased to reflect the application of a transmission delivery cost adjustment per kWh of energy used or estimated, calculated in accordance with Section 13.04.080. G. Sales taxes. Sales taxes, where applicable, will be charged to the customer in addition to the above rates. Sec. 13.04.070. Municipal street lighting service fee. A. Applicability. This fee applies to all residents within the corporate boundaries of the City. B. Purpose. This fee shall pay for City -owned and operated street lighting on all dedicated public streets, highways, expressways, and thoroughfares within the City limits, from dusk to dawn, or as determined by the City in its sole discretion. C. Monthly Fee. Streetlight fee per account within City limits: $2.40. In instances where a single account provides service to multiple units (like a master -metered property), the monthly fee shall be assessed per individual unit served by that account. D. Service. The City will maintain all municipal street lighting facilities within the corporate boundaries of the City. Service rendered under this Section is subject to the City's Rules and Regulations. Sec. 13.04.071. Reserved. Sec. 13.04.075. Power cost adjustment factor. A. Availability. The Power Cost Adjustment Factor (PCAF) shall be applied uniformly to the sales to all customers of the City. Page 20 of 27 Calculation Method. The purpose of this schedule is to accurately recover from City customers the cost of wholesale power purchases in excess of the base amount included in the City's electric retail rate schedules. Wholesale power purchases shall not include transmission charges, ERCOT Fees, delivery charges, and any other delivery fees necessary. Wholesale power purchases shall include but are not limited to fuel charges and substation charges. All wholesale power cost realized above the base amount shall be billed by the City on its monthly bills as a power cost adjustment, determined in accordance with the provisions set forth below. Periodically, the City will compare the total amount of power cost adjustment revenue to the actual energy costs and adjust the power cost adjustment factor (PCAF). The General Manager of the Utility is responsible to set the PCAF to recover the shortfall from customers or to refund the excess to customers and will report the financial status of the electric fund to the Council on a quarterly basis. The formula for calculation of the power cost adjustment factor is as follows: PCAF = WC - (P)(K) - CF Definitions. PCAF = Power cost adjustment ($ per kWh) rounded to the nearest $0.0001/kWh WC = Total cost of power, not including transmission charges, ERCOT Fees, and delivery charges purchased by the City from its supplier for the immediately preceding wholesale billing period ($). (P) = Total energy (kWh) purchased by the City from its supplier for the immediately preceding wholesale billing period (kWh). (S) = Total estimated sales (kWh) to City customers for the current City billing period (kWh). (K) = Base wholesale power cost included in the City's retail electric rate schedules. CF = Correction factor adjustment to be applied in the current City billing period to provide for correction of the variance between power cost adjustment expenses which should have been recovered and actual power cost adjustment revenues received for the immediately preceding City billing period prior to the current City billing period ($). The formula for calculation of the correction factor (CF) is as follows: CF = (A) - (B) Where: (A) = The actual power cost adjustment revenues in dollars received from power cost adjustment for the immediately preceding City billing period. (B) = The actual wholesale power cost not including transmission, ERCOT, congestion charges and other fees associated with delivery in dollars paid by the City in excess of the base amount of wholesale power cost included in the City's electric retail rate schedules for the second preceding wholesale billing record. Sec. 13.04.080. Transmission delivery cost adjustment factor. A. Availability. The Transmission Delivery Cost Adjustment Factor (TDCAF) shall be applied uniformly to the sales to all customers of the City, except sales made to guard light or municipal streetlight services. B. Calculation Method. The purpose of this schedule is to accurately recover from City customers the cost of the transmission and delivery of wholesale power purchases in excess of the base amount included in the City's electric retail rate schedules. Transmission and delivery shall include but is not limited to transmission charges, ERCOT Fees, delivery charges, and any other delivery fees necessary. All transmission delivery cost realized above the base amount shall be billed by the City on its monthly bills as a transmission delivery adjustment, determined in accordance with the provisions set forth below. Periodically, the City will compare the total amount of transmission delivery adjustment revenue to the actual transmission delivery costs and adjust the Page 21 of 27 TDCAF. The General Manager of the Utility is responsible to set the TDCAF to recover any shortfall from customers and refund any excess to customers. The formula for calculation of the transmission delivery adjustment factor is as follows: TDCAF = TC - (P)(K) - CF C. Definitions. TDCAF = Transmission delivery cost adjustment ($ per kWh) rounded to the nearest $0.0001/kWh. TC = Total estimated transmission delivery cost including but not limited to transmission charges, ERCOT Fees, congestion fees, ancillary costs, QSE fees and any other costs associated with delivery of wholesale power purchased by the City from its supplier for the immediately preceding wholesale billing period ($). (P) = Total energy (kWh) purchased by the City from its suppliers for the immediately preceding wholesale billing period (kWh). (S) = Total estimated sales (kWh) to City customers for the current City billing period (kWh). (K) = Base transmission delivery cost included in the City's retail electric rate schedules ($0.0048 per kWh). CF = Correction factor adjustment to be applied in the current City billing period to provide for correction of the variance between transmission delivery adjustment expenses which should have been recovered and actual transmission delivery adjustment revenues received for the immediately preceding City billing period prior to the current City billing period ($). The formula for calculation of the correction factor (CF) is as follows: CF = (A) - (B) Where: (A) = The actual transmission delivery adjustment revenues in dollars received from transmission delivery cost adjustment for the immediately preceding City billing period. (B) = The actual transmission delivery costs in dollars paid by the City in excess of the base amount of transmission delivery cost included in the City's electric retail rate schedules for the second preceding wholesale billing record. Sec. 13.04.081. Curtailment, interruption of service, and ERCOT-related charges A. No Guarantee of Uninterrupted Service. Electric service is provided subject to the availability of supply and system conditions. The City does not guarantee an uninterrupted supply of electric service. Curtailment and Interruption Authority. The City reserves the right to curtail, reduce, or interrupt delivery of electric service to any customer, in whole or in part (each, a "curtailment event"), under any of the following circumstances: 1. In response to directives, protocols, or emergency actions issued by the Electric Reliability Council of Texas (ERCOT) or other applicable reliability authority due to system reliability needs; 2. During events of force majeure; 3. During unplanned outages, including but not limited to failure of transmission or distribution facilities, equipment malfunction, forced outages, or damage to infrastructure; or 4. During planned outages or maintenance activities. All customers served by the City are subject to curtailment events. C. Force majeure. "Force majeure" means an event or circumstance that: Page 22 of 27 1. Prevents a party from performing its obligations under this Article; 2. Is beyond the reasonable control of such party; 3. Was not reasonably foreseeable, or if foreseeable could not have been avoided through the exercise of due diligence; 4. Is not the result of such party's negligence or fault; and 5. Cannot be overcome or avoided through the exercise of due diligence. D. Customer Compliance. Customers shall comply with all curtailment or interruption directives issued by the City during a curtailment event, including directives to reduce load, cease usage, or otherwise modify consumption as directed. E. Liability for Non -Compliance. A customer who fails to comply with curtailment directives shall be responsible for any costs, charges, penalties, or liabilities incurred by the City as a result of such non- compliance, including but not limited to ERCOT uplift charges, securitization charges, settlement charges, penalties, fines, or other market -related costs imposed directly or indirectly on the City. F. ERCOT settlement amounts and cost responsibility. All customers shall be responsible for costs and expenses incurred by the City associated with providing electric service that are attributable to such customer's load, including but not limited to: ERCOT settlement costs; sub-QSE fees; load ratio share charges; ERCOT administrative fees; Electric Reliability Organization fees; uplift charges to load; ancillary service costs; ERCOT miscellaneous invoices; and any other charges, fees, or costs assessed by ERCOT or any governmental authority (collectively, "ERCOT settlement amounts"). Such costs may include verifiably documented incremental administrative or procurement costs incurred by the City in serving the customer's load. Customers shall also be responsible for costs associated with energy usage that exceeds the customer's designated or reasonably expected load characteristics, including any additional costs incurred by the City to procure energy or ancillary services. G. Market risk acknowledgment. Customers acknowledge that wholesale electric markets, including the ERCOT market, are subject to price volatility and regulatory change. Such risks may include, but are not limited to, exposure to day -ahead and real-time market prices, changes in ERCOT protocols or pricing structures, transmission constraints, generation availability, weather -related conditions, and changes in regulatory or market requirements. The City does not control such conditions and shall not be responsible for impacts to customer costs resulting from such conditions. H. Disconnection for Non -Compliance. The City shall have the right to disconnect or otherwise limit electric service to enforce compliance with curtailment directives. I. Limitation of Liability. The City shall not be liable for any damages resulting from curtailment, interruption, disconnection of service, or market -related costs. Customers shall not be relieved of their obligation to pay for electric service and associated charges during a curtailment event. J. Governmental authority. "Governmental authority" means any federal, state, local, or municipal government, or any governmental, quasi -governmental, regulatory, or administrative agency, commission, or authority, including but not limited to ERCOT, the Public Utility Commission of Texas (PUCT), the Federal Energy Regulatory Commission (FERC), the North American Electric Reliability Corporation (NERC), or the Texas Reliability Entity. Sec. 13.04.082. Customer responsibility for interference and damage to electric system. A. Customer responsibility for system impacts. Customers shall operate their equipment and facilities in a manner that does not cause voltage fluctuations, disturbances, harmonics, waveform distortion, Page 23 of 27 interference, or other conditions that adversely affect the City's electric system, other customers, or telecommunication facilities. Determination of interference. If the City determines that a customer's equipment or operations are causing or contributing to such conditions, and such conditions are reasonably identified, documented, and capable of verification, the City may require the customer to take corrective action. C. Corrective action required. The City may require the customer, at the customer's sole cost and expense, to install, operate, and maintain equipment or take other measures necessary to eliminate or mitigate such conditions, including but not limited to power conditioning equipment, filtering devices, or other corrective apparatus. D. Failure to correct. If the customer fails to take corrective action within a reasonable period after notice from the City, the City shall have the right to take such actions as it deems necessary to protect the electric system and other customers, including but not limited to: 1. Implementing operational restrictions; 2. Temporarily disconnecting or limiting electric service; or 3. Undertaking corrective measures directly. The customer shall be responsible for all expenses incurred by the City in connection with such actions. E. Immediate disconnection for safety. The City may disconnect electric service immediately and without prior notice if the customer's equipment or operations create conditions that pose an imminent threat to the safety of persons, the integrity of the electric system, or the protection of property. Limitation of liability. The City shall not be liable for any damages resulting from actions taken under this section. Sec. 13.04.083. Demand response and third -party load commitments. A. Applicability. This section applies to customers served under the Large Commercial and Industrial, Very Large Commercial and Industrial, or any electric service agreement rate or service arrangement, and to any other customer whose load the City determines may affect wholesale power supply, ERCOT settlement, system reliability, or City resource obligations. City Consent Required.: Customer shall not enroll in, participate in, or otherwise commit Load served to any Demand Response Program, including (i) current or future ERCOT programs as a Load Resource or Controllable Load Resource, or in Emergency Response Service or (ii) other third -party demand response programs without the prior written consent of City, which consent City may withhold in its sole discretion.. a. Maximum Permissible Load Participation. To the extent that City consents to Customer's participation in ERCOT or other third -party Demand Response Programs, Customer shall obtain the required authorization and approval from the City at least annually, including the Non -Opt -In Entity ("NOIE") form or the appropriate authorization from the City, to participate in any demand - side management or load -provided service programs offered by ERCOT or any other third party, and City will determine, in its sole discretion, the maximum permissible participation by Customer in such programs ("Maximum Permissible Load Participation"). City has the right to withdraw (Supp. No. 32, Update 3) Created: 2026-03-04 08:45:15 [EST] Page 24 of 27 attestation of NOIE authorization or its approval of participation in any DR program or adjust the Maximum Permissible Load Participation at any time. Customer shall be responsible for all metering and QSE requirements in connection with such programs and shall comply with the requirements for participation in such programs b. Customer shall be solely responsible for all liabilities, costs, expenses and penalties in connection with Customer's participation in these programs. Customer Minimum Load. Customer shall be required to maintain a minimum base Load (the "Customer Minimum Load"), which represents the Customer's load shed obligations to meet their portion of the City's overall load shed obligations.. This amount of Load may not be eligible to participate in DR Programs, as the Load must be available to shed during ERCOT emergency events. The Customer Minimum Load amount may be updated by the City in its sole discretion. If Customer use falls below any Customer Minimum Load, City reserves the right to assess penalties Notwithstanding the foregoing, the Parties recognize that the foregoing minimum load requirement of Customer during emergency events is subject to actual ERCOT Protocols and Applicable Law at the time of the event, which ERCOT and any other Governmental Authority may revise from time to time, and Customer agrees to comply with the actual ERCOT Protocols and Applicable Law at the time of the event and any applicable revisions to the ERCOT Protocols or Applicable Law. City and Customer will comply with all emergency load shedding obligations imposed by ERCOT, Applicable Law and any Change in Law related to the provision of retail electric service to Customer. b. Customer shall maintain any Customer Minimum Load at all times (24/7/365) until instructed by City for interruption to meet a load shed requirement. If Customer fails to maintain its Customer Minimum Load at any time during an ERCOT settlement interval in which a Customer Minimum Load is required, then Customer shall pay as a liquidated remedy for such failure, within thirty (30) days of notification of violation by City, a deficiency amount for the deficiency period which shall be measured as the difference between (x) the Customer Minimum Load and (y) the lowest actual Customer Load during such settlement interval, times the ERCOT HCAP, summed for all affected settlement intervals during the applicable payment period. The Customer Minimum Load shall be measured at the Point of Service.. D. Interruption of Service and Participation in DR Programs. City shall have the right in its sole discretion to curtail or interrupt Service to Customer without liability to Customer for any reason, including but not limited to Customer's inability to participate and perform in DR Programs during such curtailment. E. Conditions of Consent. The City may condition consent on metering, telemetry, operational controls, scheduling protocols, communication requirements, financial assurance, indemnity, or other requirements necessary to protect the City, its customers, and the electric system. F. Customer Responsibility. A customer that participates in a demand response program without City consent, or fails to comply with conditions of consent, shall be responsible for all costs, charges, penalties, settlement amounts, losses, or liabilities incurred by the City arising from such participation or failure. G. Participation in any demand response program shall not limit the City's right to curtail, interrupt, reduce, or disconnect service in accordance with the City's Rules and Regulations, ERCOT requirements, or the customer's electric service agreement. Sec. 13.04.084. Energy efficiency and energy conservation fee. A. Availability. This monthly fee will be charged to all electric meters for all rate classes. B. Monthly Rate. Page 25 of 27 Rate Class Fee Residential $1.00 Net Energy Metering —Residential $1.00 Small General $1.00 Net Energy Metering —Small General $1.00 School $5.00 Municipal Water and Wastewater Pumping $5.00 Municipal $5.00 Large General $10.00 Commercial & Industrial $15.00 Large Commercial & Industrial $25.00 Month -to -Month Large Commercial & Industrial $25.00 Very Large Commercial & Industrial $25.00 Month -to -Month Very Large Commercial & Industrial $25.00 C. Sales taxes. Sales taxes, where applicable, will be charged to the consumer in addition to the above fee. D. Use of Funds. Use of funds collected from the energy efficient and energy conservation fee, including all funds previously collected pursuant to this Section, shall be limited to energy efficiency and conservation program costs, activities, and financial incentives, including, but not limited to the following: 1. Program Design and Administration Costs. a. Staffing and Administrative Costs. Salaries and benefits for program managers, coordinators, analysts, and administrative support personnel, along with the associated administrative costs to support such personnel. b. Consulting Fees. Costs for hiring external consultants or firms to assist with program design, evaluation, and implementation. 2. Incentives and Rebates. a. Direct Incentives. Payments or rebates provided to consumers, businesses, or utilities for adopting certain energy -efficient technologies or practices. b. Equipment. Costs for purchasing and dispersing certain energy -efficient appliances to certain customers. 3. Marketing and Outreach Costs. a. Public Awareness Campaigns. Costs associated with advertising, media outreach, and educational materials to promote energy efficiency among consumers and businesses. b. Workshops and Training. Expenses related to organizing workshops, seminars, and training sessions for stakeholders related to energy -saving practices. 4. Evaluation and Measurement Costs. a. Impact Evaluation. Costs associated with conducting studies or evaluations to measure the effectiveness and outcomes of energy efficiency programs. b. Data Collection. Expenses for collecting and analyzing data related to energy consumption, savings, and program participation. 5. Regulatory and Compliance Costs. Fees or costs associated with regulatory filings, compliance reporting, and meeting regulatory requirements set by state or local authorities. Page 26 of 27 6. Long -Term Maintenance and Monitoring Costs. Costs associated with ongoing maintenance, monitoring, and evaluation of installed energy -efficient measures or technologies. Sec. 13.04.085. Reserved. Sec. 13.04.090. Reserved. Secs. 13.04.095, 13.04.100. Reserved. Page 27 of 27