HomeMy WebLinkAboutContract 51414 CITY SECRETARY
CONTRACT NO.
ELECTRIC RELIABILITY COUNCIL OF TEXAS, INC.
MEMBERSHIP APPLICATION AND AGREEMENT FOR MEMBERSHIP YEAR 2019
This Membership Application and Agreement for Membership Year 2019 (Agreement) is
made and entered into by and between Electric Reliability Council of Texas, Inc. (ERCOT)
and City of Fort Worth (Applicant). In consideration of the mutual covenants contained
herein Applicant hereby submits its application for ERCOT Membership (Membership)
and agrees to be bound by the obligations of Membership as further described herein and
the ERCOT Bylaws. ERCOT will review this application and will provide Member services
and benefits described herein, subject to the terms and conditions of this Agreement and
the ERCOT Bylaws, provided that Applicant meets the requirements to become an
ERCOT Member (Member). This Agreement shall be effective as of the date that ERCOT
provides written notice approving this application for Membership Year 2019 (Effective
Date).
Capitalized terms that are not defined in this Agreement shall have the meaning as
defined in the ERCOT Bylaws, as amended from time to time.
A. Membership Application Information.
1. Legal Name of Applicant.
Provide full corporate name and, if applicable, assumed "doing business as"
name, of Applicant applying for Membership.
City of Fort Worth
2. Type of Membership.
Select ONE of three available types of Membership below (that is,
Corporate, Associate or Adjunct).
�1% e16�- Members who are Affiliates (as defined in the ERCOT Bylaws) may hold
only one Corporate Membership among such Members.
Other applicants applying for additional ERCOT Memberships, such as an
Associate Membership, must use a separate Agreement for each
Membership.
The applicable Annual Member Dues listed below for each Membership
type provide Corporate Members with voting rights pursuant to the ERCOT
X22010 Bylaws and entitle Members to services ERCOT provides such as hosting
GAN S�CE<�AFtYF�
ERCOT
otherMembermeetings,
services eslding Members with necessary as ERCOT may from time to timeinformation and such
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' DRTH,TX
ERCOT Membership Application and Agreement for Membership Year 2019
ERCOT Public Page 1
Z Corporate.Voting. $2,000 per Membership Year(except Residential
and Commercial Consumer Members' Annual Member Dues are $100 per
Membership Year). Corporate Membership includes the right to vote on
matters submitted to the general Membership, such as election of Board
Directors, election of Technical Advisory Committee (TAC) Representatives
and TAC subcommittees, and amendments to the Certificate of Formation
(formerly known as the Articles of Incorporation) and the ERCOT Bylaws.
Residential Consumer Members do not elect a Director to represent the
Residential Consumer interests as the Public Counsel is mandated to
represent these interests as an ex officio Director on the Board. The Office
of Public Utility Counsel (OPUC) and the appointed Residential Consumer
TAC Representative shall be eligible to be Corporate Members without the
payment of Annual Member Dues.
❑ Associate. Non-voting. $500 per Membership Year (except
Residential and Commercial Consumer Members' Annual Member Dues
are $50 per year). Associate Membership does not provide any voting rights
for matters submitted to the general Membership. However, an Associate
Member may be elected by Corporate Members to serve as a voting
member of the Board, TAC or a TAC subcommittee.
❑ Adjunct. Non-voting. $500 per Membership Year. Applicants not
meeting the Segment requirements for Membership may join as Adjunct
Members upon Board approval. Adjunct Membership does not provide any
voting rights for matters submitted to the general Membership nor any right
to be elected or appointed to the Board, TAC or a TAC subcommittee.
Adjunct Members shall be bound by the same obligations as other
Members.
3. Payment of Annual Member Dues.
The applicable Annual Member Dues must be paid and delivered to ERCOT
by the Record Date, as determined pursuant to the ERCOT Bylaws and
defined in Section B.3. below, in order for the Member to participate in the
elections for the Membership Year 2019. Checks shall be made payable to
ERCOT and mailed to ERCOT, Attention: Treasury Department, 7620
Metro Center Drive, Austin, Texas 78744. Contact ERCOT at
membership(a)-ercot.com for wire instructions.
ERCOT Membership Application and Agreement for Membership Year 2019
ERCOT Public Page 2
4. Segment Eligibility.
Check ONE Segment designation, as further described in the ERCOT
Bylaws, for which Applicant believes in good faith that Applicant is eligible.
® Consumer. Any entity meeting the definition for Residential
Consumers, Commercial Consumers or Industrial Consumers as set forth
in the ERCOT Bylaws.
Check ONE Subsegment designation:
❑ Residential Consumer. The appointed Board Director
representing residential consumer interests, an organization
or agency representing the interests of residential consumers
in the ERCOT Region, or the Residential Consumer TAC
Representative.
❑ Small Commercial Consumer. A commercial consumer
having a peak demand of 1000 KW or less (or an organization
representing such consumers).
® Large Commercial Consumer A commercial consumer
having a peak demand greater than 1000 KW.
❑ Industrial Consumer. An industrial consumer with at least
one meter with average monthly demand greater than 1
megawatt consumed within the ERCOT Region engaged in
an industrial process.
An entity applying for ERCOT membership as a Residential
Consumer, Small Commercial Consumer or Large Commercial Consumer
is ineligible if that entity has interests in the electric industry in any other
capacity than as an end-use consumer or represents the interests of
another entity that has interests in the electric industry in any other capacity
than as an end-use consumer.
The three Consumer Directors of the Board have the right to
determine Applicant eligibility in the Residential and Commercial
Subsegments as provided in the ERCOT Bylaws.
❑ Cooperative. An Entity operating in the ERCOT Region that is:
(i) A corporation organized under Chapter 161 of the Texas
Utilities Code or a predecessor statute to Chapter 161 and
operating under that chapter;
(ii) A corporation organized as an electric cooperative in a state
other than Texas that has obtained a certificate of authority to
conduct affairs in the State of Texas;
ERCOT Membership Application and Agreement for Membership Year 2019
ERCOT Public Page 3
(iii) A cooperative association organized under Chapter 251 of the
Texas Business Organizations Code or a predecessor to that
statute and operating under that statute; or
(iv) A River Authority as defined in Tex. Water Code §30.003.
❑ Independent Generator. Any entity that is not a Transmission and
Distribution Entity (T&D Entity) or an Affiliate of a T&D Entity and that (i)
owns or controls generation of at least 10 MW in the ERCOT Region; or (ii)
is preparing to operate and control generation of at least 10 MW in the
ERCOT Region, and has approval of the appropriate governmental
authority, has any necessary real property rights, has given the connecting
transmission provider written authorization to proceed with construction and
has provided security to the connecting transmission provider.
❑ Independent Power Marketer. Any entity that is not a T&D Entity or
an Affiliate of a T&D Entity and is registered at the Public Utility Commission
of Texas (PUCT) as a Power Marketer to serve in the ERCOT Region.
❑ Independent Retail Electric Provider (REP). Any entity that is
certified by the PUCT to serve in the ERCOT Region as a Retail Electric
Provider under PURA §39.352 and that is not an Affiliate of a T&D Entity.
❑ Aggregator. For purposes of Segment classification, an
aggregator may register to participate in this Segment if
unable to qualify in any other Segment.
❑ Investor-Owned Utility.
(i) An investor-held, for-profit "electric utility" as defined in PURA
§31.002(6) that:
(a) Operates within the ERCOT Region;
(b) Owns 345 kV interconnected transmission facilities in
the ERCOT Region;
(c) Owns more than 500 pole miles of transmission
facilities in the ERCOT Region; or
(d) Is an Affiliate of an entity described in (a), (b) or (c); or
(ii) A public utility holding company of any such electric utility.
❑ Municipal. An entity operating in the ERCOT Region that owns or
controls transmission or distribution facilities, owns or controls dispatchable
generating facilities, or provides retail electric service and is either:
(i) A municipally owned utility as defined in PURA §11.003 or
(ii) A River Authority as defined in Tex. Water Code §30.003.
ERCOT Membership Application and Agreement for Membership Year 2019
ERCOT Public Page 4
5. Identification of Applicant's Designated Representative and
Designated Representative Alternate.
a. Designated Representative.
ERCOT requires Applicant to designate an official representative in order
for ERCOT to conduct ERCOT's corporate business (that is, for ERCOT to provide
notice to each of its Members and for Members to participate and/or vote at
Membership meetings, as applicable). Applicant identifies its designated
representative for required notices to ERCOT Members, participation in meetings
of the Corporate Members and voting issues, as applicable, as follows:
Name: Jesus J. Chapa
Title: Assistant City Manager
Address: 200 Texas St
City, State, Zip: Fort Worth, Texas, 76102
Phone: 817.392.5804
Email: a esus.chapa(b-fortworthtexas.gov
b. Designated Representative Alternate.
In the event that ERCOT is unable to contact Applicant's designated
representative for any reason after reasonable attempts, Applicant identifies a
designated representative alternate to receive required notices to ERCOT
Members and to participate in meetings of the Corporate Members and voting
issues, as applicable, as follows:
Name:
Title:
Address:
City, State, Zip:
Phone:
Email:
6. Identification of Other Members who are Affiliates of Applicant.
Applicant identifies other ERCOT Memberships held by Applicant or Affiliates of
Applicant, if any (attach extra pages if necessary) as:
(a) Member name:
Segment:
(b) Member name:
Segment:
ERCOT Membership Application and Agreement for Membership Year 2019
ERCOT Public Page 5
(c) Member name:
Segment:
B. Membership Agreement.
1. Membership.Any entity that qualifies for any of the Segment definitions set
forth in the ERCOT Bylaws is eligible for Membership. Members must be an
organization that either operates in the ERCOT Region or represents consumers
within the ERCOT Region as provided in the ERCOT Bylaws. Members may join
as a Corporate, Associate or Adjunct Member subject to the criteria set forth in the
ERCOT Bylaws. Applicants must apply for Membership through an authorized
officer or agent.
2. Term. The Membership Year 2019 begins on January 1, 2019, and ends
on December 31, 2019. The term of this Agreement begins on the Effective Date
and ends on December 31, 2019.
3. Record Date. The record date for Membership Year 2019 is Friday,
November 9, 2018 (Record Date). Only applicants who have been approved as
Corporate Members for Membership Year 2019 as of the Record Date shall be
eligible to cast votes at the Annual Membership Meeting on December 11, 2018,
including votes to confirm the 2019 ERCOT Board of Directors who serve from
January 1, 2019, through December 31, 2019.
4. Membership Dues. Annual Member Dues are provided in the ERCOT
Bylaws. Any change in or waiver of Annual Member Dues must be approved
pursuant to the procedures set forth in the ERCOT Bylaws. Any change in Member
Dues for a particular category of Members shall automatically become effective as
to all ERCOT Members without the necessity of amending this Agreement.
All Memberships must be renewed annually. Annual Member Dues renewals shall
be due by the Record Date for the annual membership meeting. Annual Member
Dues will not be prorated.
Any Applicant may request that the Member's Annual Member Dues be waived for
good cause shown.
5. Application for Membership. Applicant must submit the following items in
order to apply for Membership:
(i) Payment of the applicable Annual Member Dues; and
(ii) A copy of this Agreement, signed by an authorized representative of
Applicant.
ERCOT Membership Application and Agreement for Membership Year 2019
ERCOT Public Page 6
Upon receipt of payment and a signed copy of this Agreement, ERCOT will
promptly notify Applicant of Membership status in writing, whether approved or not.
6. Change of Designated Representative or Designated Representative
Alternate. All ERCOT Members shall maintain current contact information on file
with ERCOT for their designated representative and designated representative
alternate. An ERCOT Member may change its designated representative or
designated representative alternate at any time by written request of a duly
authorized representative of the ERCOT Member submitted to the ERCOT Legal
Department at membership(a-)_ercot.com.
7. Changes in Affiliates. All ERCOT Members are required to notify ERCOT
of any changes in their Affiliates in accordance with the ERCOT Bylaws.
8. Suspension and Expulsion. All ERCOT Members shall abide by the
ERCOT Bylaws, as they may be amended from time to time, and any other rule or
regulation duly adopted by the Board of Directors. Any ERCOT Member, who
violates any provision of this Agreement, the ERCOT Bylaws, or any other rule or
regulation duly adopted by the Board of Directors, may be reprimanded,
suspended, and/or expelled in accordance with procedures adopted by the Board
of Directors or set forth in the ERCOT Bylaws. Such action will affect all entities
deriving Membership privileges through such ERCOT Member. Suspension and
expulsion are cumulative and non-exclusive remedies that may be pursued against
Applicant or any other ERCOT Member in addition to any other remedy available
under the Standard Form Market Participant Agreement, any other agreement
executed by the ERCOT Member, or any other applicable statutes, laws, rules, or
regulations.
9. Amendment. This Agreement may be amended, modified, superseded,
canceled, renewed, or extended and the terms and conditions hereof may be
waived only by a written instrument executed by both parties hereto or, in the case
of a waiver, by the party waiving compliance.
10. Governing Law. This Agreement shall be governed by and construed and
interpreted in accordance with the laws of the State of Texas that apply to contracts
executed in and performed entirely within the State of Texas, without reference to
any rules of conflict of laws. Parties consent to the exclusive jurisdiction of Texas.
ERCOT Membership Application and Agreement for Membership Year 2019
ERCOT Public Page 7
IN WITNESS WHEREOF, Applicant certifies that:
(i) Applicant meets the requirements for ERCOT Membership in the Segment
designated herein;
(ii) All information provided herein is true and correct to the best of Applicant's
knowledge; and
(iii) The signatory for Applicant is a representative authorized by Applicant with
authority to bind Applicant contractually;
(iv) Through the signature of its authorized representative below, Applicant
agrees to be bound by the terms of this Agreement, the ERCOT Bylaws,
applicable ERCOT Protocols, and any other requirements duly adopted by
the Board of Directors or required by the Public Utility Commission of Texas
or applicable law.
APPLICANT
City of Fort Worth
By:
Printed Name: Jesus J. Chapa
Title: Assistant City Manager
Date:
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Attested by. r: •o�
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OFFICIAL RECORD
&�� CITY SECRETARY
1295: IF"s.WORTH,TX
ERCOT Membership Application and Agreement for Membership Year 2019
ERCOT Public Page 8
Lloyd 816 Congress Avenue,Suite 1900
Austin,Texas 78701
Telephone:( 322-5800Gossehnk
Facsimile.(512)4720532
•••• A T T O R N B Y 5 A T LAK' www.iglawrirm.com
Mr.Brewster's Direct Line:(512)322-5831
Email: cbrewsterCl¢lawfirm.com
Fax: (512)472-0532
MEMORANDUM
TO: City and Other Political Subdivision Members of ERCOT
FROM: Chris Brewster
DATE: October 2, 2018
RE: ERCOT Membership Renewal for 2019
The purpose of this memorandum is to recommend that your city or other political subdivision
renew its membership in the Electric Reliability Council of Texas ("ERCOT') for 2019. For the
reasons we detail below, an ERCOT membership continues to be a straightforward and cost-effective
way for your city to influence electric policy in Texas, and we recommend that you submit your
ERCOT membership renewal application and fee by Friday, November 9, 2018. The
membership fee is $100 per year.
WHAT is ERGOT?
ERCOT is the entity that is responsible for operating the electric grid in the deregulated portion
of Texas. Furthermore, ERCOT maintains the set of complicated rules that frame the way that
electricity is bought and sold in the deregulated wholesale market. Through a process of negotiation
and deliberation within committees of interested parties, the ERCOT stakeholder process is constantly
reviewing and revising these rules, known as the ERCOT protocols. Most of the issues addressed at
ERCOT are addressed nowhere else—the Public Utility Commission has largely delegated these issues
to the ERCOT stakeholder process.
WHAT ROLE DO CITIES PLAY IN THE ERGOT PROCESS?
Consumers, such as cities and other political subdivisions, have a voice in ERCOT's decision-
making process. Each segment of the ERCOT market has a vote on issues before ERCOT, through its
representatives on the Technical Advisory Committee ("TAC")and the Board of Directors("Board").
TAC and the Board are the bodies responsible for making the most important decisions about
the detailed workings of the ERCOT market. These decisions can have bottom-line impacts on
electricity prices. A total of 147 cities and other political subdivisions joined ERCOT in 2018. With
this membership strength, cities successfully elected two city representatives to TAC and one director
to ERCOT's Board of Directors for 2018. A strong contingent of city members would make
continuation of this strong presence likely for 2019.
As you know, consumers in ERCOT face constant efforts by power generators and power
marketers to modify the electricity market in ways that would increase prices. In 2019, ERCOT and
the PUC will work on several major market redesign initiatives. This means that cities' presence in the
ERCOT process as a voice for consumers is of continued importance.
Lloyd Gosselink Rochelle &Townsend, P.C.
ERCOT Member Cities
October 2,2018
Page 2
WHAT DOES AN ERCOT MEMBERSHIP REQUIRE?
It is not difficult to renew your ERCOT membership. A simple form is required, along with
payment of a $100 membership fee. in the pages that follow, you find a guide to completion of the
form. We are also available to assist you; please feel welcome to call me (Chris Brewster) at my
phone number at the top of this memorandum, or email me at cbrewster@lglawfirm.com.
In order to vote for candidates for the 2019 Technical Advisory Committee and the Board of
Directors, ERCOT must receive your renewal application and $100 fee by Friday, November 9,
2018.
In completing the attached form,please note the following:
• Only corporate members may vote in ERCOT matters. In response to Question No. A.2 on the
form,we recommend that cities renew as Corporate, rather than associate, members. (for your
convenience, we have already checked this option]
• On the following list of member cities, you can see which Consumer segment (Small or Large
Commercial) your city joined in for 2018. We recommend that you choose the same
segment on Question No. A.4 when renewing your membership for 2019. Please call me
(Chris Brewster) at 512-322-5831 (or email: cbrewster@lglawfirm.com) if you have any
questions about this.
• For corporate members in the Small or Large Commercial Consumer Segment, the renewal fee
is$100. The form designates how the payment is to be made in paragraph A.3.
• In response to Question No. A.5, please designate as your authorized representative an
employee of your city that can receive notices from ERCOT. ERCOT contacts its members
very rarely; this person will not be inundated with emails, but may be asked to vote on
important issues from time-to-time. Please also designate an alternate representative; this is a
new requirement in this year's form. During the coming year, please feel free to forward
anything you receive from ERCOT to me at the email address above.
• There is no need to answer Question No. A.6, as it is not relevant to cities' memberships in
ERCOT.
• Item A.3 on the form states the address at which to mail the form to ERCOT, but this can also
be done by email: membership@ereot.com. Please note that if you submit your application
via email, you must still send the $100 fee to ERCOT by mail or wire; ERCOT does NOT
accept credit cards. After you have sent your application to ERCOT,please forward a copy of
your application to us at cbrewster@lglawfrm.com or fax (512) 472-0532. This will help us
track pending applications, and will allow us to follow up with ERCOT if issues arise.
Please feel free to call or email us if you have any questions in completing the form or about
ERCOT in general.
7740718
ERCOT Member Cities
October 2, 2018
Page 3
Small Commercial City of River Oaks City of Midlothian
Aransas County MUD No. 1 City of Rotan City of Mission
City of Belton City of Rowlett City of Mont Belvieu
City of Benbrook City of Sachse City of North Richland Hills
City of Breckenridge City of Saginaw City of Odessa
City of Bridgeport City of Seabrook City of Plano
City of Brownwood City of Seagoville City of Richland Hills
City of Burkbumett City of Simonton City of Robinson
City of Caddo Mills City of Snyder City of Rockport
City of Cedar Hill City of Springtown City of San Angelo
City of Celina City of Texas City City of Seadrift
City of Clear Lake Shores City of Webster City of Sherman
City of Clyde City of Weston Lakes City of South Padre Island
City of Colleyville City of Wharton City of Stephenville
City of Colorado City City of White Settlement City of Sugar Land
City of Copperas Cove City of Woodway City of Sulphur Springs
City of Corinth City of Wylie City of Sweetwater
City of Crowley Town of Fulton City of Taylor Lake Village
City of Dalworthington Gardens Town of Highland Park City of Temple
City of DeSoto Town of Laguna Vista City of The Colony
City of Dublin Town of Lakeside City of Tyler
City of Early Town of Prosper City of Vernon
City of Eastland Town of Sunnyvale City of Victoria
City of Ennis Town of Trophy Club City of Waco
City of Everman Town of Woodsboro City of Watauga
City of Fate City of Waxahachie
City of George West Laree Commercial City of Wichita Falls
City of Hamilton Aquilla Water Supply District Johnson County SUD
City of Harker Heights City of Alamo South Texas Water Authority
City of Haslet City of Allen Harlingen Housing Authority
City of Hewitt City of Arlington Town of Addison
City of Honey Grove City of Bedford Town of Flower Mound
City of Howe City of Big Spring
City of Hutto City of Canton
City of Ingleside City of Carrollton
City of Josephine City of Coppell
City of Justin City of Corpus Christi
City of Keller City of Dallas
City of Kerens City of Decatur
City of Krum City of Denison
City of La Feria City of Duncanville
City of La Marque City of Euless
City of Lake Worth City of Farmers Branch
City of Lancaster City of Forest Hill
City of Little River-Academy City of Fort Worth
City of Lorena City of Frisco
City of Los Fresnos City of Grand Prairie
City of Manvel City of Grapevine
City of Morgan's Point City of Harlingen
City of Murchison City of Houston
City of Nassau Bay City of Hurst
City of Oak Point City of Irving
City of Ovilla City of Killeen
City of Paris City of Kingsville
City of Piney Point Village City of Lake Jackson
City of Point Comfort City of Lewisville
City of Portland City of McAllen
City of Pottsboro City of Mercedes
City of Rhome City of Mesquite
Contract Compliance Manager:
By signing I acknowledge that I am the person responsible
for the monitoring and administration of this contract, including
ensuring all performance and reporting requirements.
Samuel C. Steele/
C` J
Name of Employee/ Signature
Energy Manager
Title
G This form is N/A as No City Funds are associated with this Contract
Printed Name Signature
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX