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ELECTRIC RELIABILITY COUNCIL OF TEXAS,INC.
MEMBERSHIP APPLICATION AND AGREEMENT FOR MEMBERSHIP YEAR 2016
This Membership Application and Agreement (Agreement) is by and between Electric Reliability Council of
Texas Inc. (ERGOT) and City of Fort Worth (Applicant). In consideration of the mutual covenants contained
herein, the parties hereby agree that the Applicant shall become an ERCOT Member and receive the ERCOT
Member Services and benefits described herein, subject to the terms and conditions of this Agreement. This
Agreement shall be effective as of the date signed by the Applicant provided that the Applicant meets all of the
qualifications for ERCOT Membership.
Capitalized terms that are not defined in this Agreement shall have the meaning as defined in the ERCOT Bylaws
or the ERCOT Protocols.
A. Membership Application Information
1. Name of Entity applying for Membership: City of Fort Worth
2. Type of Membership: Check ONE type of Membership. Affiliated Entities as defined in the
ERGOT Bylaws may hold only one Corporate Membership.
Entities applying for additional Memberships, such as an Associate Membership, must use a
separate Agreement for each Membership. The applicable fees are listed below and entitle
Members to services ERCOT provides such as hosting ERCOT meetings, providing Members
with necessary information and such other Member Services as may from time to time be offered.
Please note that any Member may request that the Member's Annual Member Service Fees be
waived for good cause shown.
® Corporate. Voting. $2,000 per Membership Year (except Residential and Commercial
Consumer Members fees are $100 per 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 (TAG) Representatives and TAC subcommittees thereof and
amendments to 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.
❑ Associate. Non-voting. $500 per Membership Year (except Residential and Commercial
Consumer Members fees are $50 per year). Associate Membership includes no voting rights.
However, an Associate Member may be elected by Corporate Members to serve as a voting
member of the Board, TAC or a TAC subcommittee thereof.
❑ Adjunct. Non-voting. $500 per Membership Year. Entities not meeting the Segment
requirements for Membership may join as Adjunct Members upon Board approval. Adjunct
Membership does not include voting rights or the right to be elected to the Board, TAC or a TAC
subcommittee thereof.
3. The Applicable Annual Member Services Fee must accompany this Agreement and be delivered
to ERCOT by the Record Date in order for the Member to participate in the elections for the
Membership Year. Please make checks payable to ERCOT and mail to ERCOT, Attention:
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Treasury Department, 7620 Metro Center Drive, Austin, Texas 78744. Please send an email to
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4. Segment Participation: (Check ONE Segment designation.)
LK Consumer. Any Entity representing the interests of end-users of electricity in the
ERCOT Region.
Check ONE Subsegment designation:
❑ Residential Consumer
❑ Small Commercial Consumer(Peak demand of 1000 KW or less)
® Large Commercial Consumer(Peak demand greater than 1000 KW)
❑ Industrial Consumer (Average monthly demand greater than 1 megawatt and
engaged in an industrial process)
❑ 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; (iii) a cooperative association organized under Tex.Rev.Civ.Stat. 1396-50.01 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 (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 REP. Any Entity that is certified by the PUCT to serve in the ERCOT
Region as a Retail Electric Provider(REP) under PURA §39.352 and that is not an Affiliate of a
T&D Entity operating in the ERCOT Region.
❑ Aggregators 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.
5. Identify your designated representative for required notices to ERCOT Members, participation in
meetings of the Corporate Members and voting issues:
Name: Jesus J. ChWa
Title: Assistant City Manager
Address: 1000 Throckmorton St
City, State,Zip: Ft. Worth,Texas
Phone: (817,39L2-5804
Fax:
Email: Jesus. Chapa@fortworthtexas.gov
6. List any other ERCOT Memberships held by the Applicant or any Affiliates(attach extra pages if
necessary):
(a)Entity name:
Segment:
(b)Entity name:
Segment:
(c)Entity name:
Segment:
B. Membership Agreement
1. Membership. Membership in ERCOT is open to any Entity that meets any of the Segment
definitions set forth in the Bylaws. Members must be an organization that either operates in the ERCOT
Region or represents consumers within the ERCOT Region. Members may join as a Corporate, Associate
or Adjunct Member subject to the criteria set forth in the ERCOT Bylaws. Members must apply for
Membership through an authorized officer or agent.
2. Fees. Annual Member Services Fees are described in the ERCOT Bylaws and may be changed
through the procedure set forth therein. Any change in fees shall automatically become effective as to all
ERCOT Members without the necessity of amending this Agreement. All Memberships are year to year
and must be renewed annually. Annual Member Services Fee renewals shall be due by the record date for
the annual membership meeting. Membership fees may not be prorated. This Agreement shall renew in
yearly increments upon ERCOT's receipt of the following (1) Member's Renewal Application and (2)
Member's applicable Annual Member Services Fee. Any Member may request that the Member's
Annual Member Service Fees be waived for good cause shown.
3. Application for Membership. Members will submit the following items in order to apply for
Membership: (i) payment of the Annual Member Services Fee and (ii) a signed copy of this Agreement.
Upon approval, ERCOT will promptly notify Member Applicant of the same.
4. Change of Designated Representative. An ERCOT Member may change its representative at
any time by written request (signed by a duly authorized representative of the ERCOT Member)
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submitted to the ERCOT Legal Department at r�p���r����;�•°�iao w���J,��q��a��,�,a.���,,,,,
5. 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 willfully 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 persons deriving Membership privileges through such
ERCOT Member.
6. 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.
7. 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.
IN WITNESS WHEREOF, the Member certifies that (i) the Member meets the requirements for ERCOT
Membership in the Segment designated herein; (ii) all information provided herein is true and correct to the best
of the Member's knowledge; and(iii)through its authorized representative the Member agrees to be bound by the
terms of this Agreement,the ERCOT Bylaws and any other requirements duly adopted by the Board of Directors.
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Printed Name: Jesus J. Chapa
Title: Assistant City Manager
Date: f
AS TO
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Lloyd 816 Congress Avenue,Suite 1900
Austin,Texas 78701
Gosselink Telephone:( 322-5800
Facsimile:(512)12)472-0532
������ ATTOR [VEYS AT LAW
voww.lglawfirm.com
Mr.Brewster's Direct Line:(512)322-5831
Email: cbrewsterAlglawfirm.com
Fax: (512)472-0532
MEMORANDUM
TO: City and Other Political Subdivision Members of ERCOT
FROM: Chris Brewster
DATE: October 2,2015
RE: ERCOT Membership Renewal for 2016
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 2016.
For the reasons that 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 by November 6,2015. The membership fee is $100
per year.
What is ERCOT?
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
("PUC")has largely delegated these issues to the ERCOT stakeholder process.
What role do cities play in the ERCOT 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.
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 142 cities and other political subdivisions joined ERCOT in 2015.
With this membership strength, cities successfully elected two city representatives to TAC and one
director to ERCOT's Board of Directors for 2015. A strong contingent of city members would
make continuation of this strong presence likely for 2016.
5292210.1 Lloyd Gosselink Rochelle &Townsend, P.C.
ERCOT Member Cities
October 2, 2015
Page 2
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 2016, ERCOT will
begin work on several major market redesign initiatives, and will be re-examining how certain kinds
of renewable resources, customer-owned generation, and energy storage will interact with the
market. This means that cities' presence in the ERCOT process as a voice for consumers is of
continued importance.
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 2016 Technical Advisory Committee and the
Board of Directors, ERCOT must receive your renewal application and $100 fee by Friday,
November 6, 2015.
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]
• 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.
• Question No. A.4 asks that you designate the segment in which you are renewing. Cities
qualify for membership in the Consumer segment, and within that segment you must
choose either the Small or Large Commercial Consumer sub-segments.
In the listing of cities on the attached page,we have noted which cities joined in each of
these categories for 2015. We recommend that you choose the same segment when
renewing your membership for 2016. Please call me (Chris Brewster) at 512-322-5831
(or email: cbrewster @lglawfirm.com) if you have any questions about this.
• In response to Question No. A.5, please designate as your authorized representative an
employee of your city that can receive notices from ERGOT. ERCOT contacts its members
very rarely; this person will not be inundated with emails. 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.
5292210.1
ERCOT Member Cities
October 2, 2015
Page 3
• 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@ercot.com or fax: (512) 225-7079. Please note that
if you submit your application via email or fax,you must still send the $100 renewal fee to
ERCOT by mail or wire. After you have sent your application to ERGOT, please
forward a copy of your application to us at my email address or fax number shown
above. 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.
5292210.1
ERCOT Member Cities
October 2, 2015
Page 4
ERCOT Membership List for 2015
Small Commercial Large Commercial
Aransas County Municipal Utility District No. 1 Aquilla Water Supply District
City of Andrews City of Abilene
City of Belton City of Alamo
City of Benbrook City of Allen
City of Breckenridge City of Arlington
City of Burkburnett City of Brownwood
City of Caddo Mills City of Canton
City of Cedar Hill City of Carrollton
City of Celina City of Coppell
City of Cleburne City of Corpus Christi
City of Clyde City of Dallas
City of Comanche City of Decatur
City of Commerce City of Denison
City of Copperas Cove City of Duncanville
City of Corinth City of Euless
City of Crockett City of Farmers Branch
City of Crowley City of Forest Hill
City of Deer Park City of Fort Worth
City of DeSoto City of Galveston
City of Dilley City of Grand Prairie
City of Dublin City of Grapevine
City of Early City of Harlingen
City of Eastland City of Hewitt
City of Fate City of Houston
City of Frisco City of Killeen
City of George West City of Kingsville
City of Glenn Heights City of Krum
City of Hamilton City of La Feria
City of Harker Heights City of Lake Jackson
City of Howe City of Lewisville
City of Hutto City of Mansfield
City of Ingleside City of McAllen
City of Josephine City of Mercedes
City of Justin City of Mesquite
City of Keller City of Mission
City of Kerens City of Missouri City
City of Lake Worth City of Morgan's Point
City of Little River-Academy City of North Richland Hills
City of Lorena City of Odessa
City of Los Fresnos City of Pearland
City of Mont Belvieu City of Port Lavaca
City of Murchison City of Portland
City of Murphy City of Richland Hills
City of Oak Point City of Rio Grande City
City of Ovilla City of Robinson
City of Paris City of Rockport
City of Point Comfort City of Sachse
City of Pottsboro City of San Angelo
City of Ranger City of Seadrift
City of River Oaks City of Sherman
City of Rosenberg City of Stephenville
City of Rotan City of Sugar Land
City of Rowlett City of Sweetwater
City of Seagoville City of Taylor Lake Village
City of Simonton City of Temple
City of Snyder City of The Colony
City of Spring Valley Village City of Tyler
5292210.1
ERCOT Member Cities
October 2,2015
Page 5
Small Commercial Large Commercial
City of Springtown City of Vernon
City of Sulphur Springs City of Victoria
City of Texas City City of Waco
City of University Park City of Watauga
City of Venus City of Waxahachie
City of Webster City of Wichita Falls
City of Weston Lakes Johnson County Special Utility District
City of Wharton South Texas Water Authority
City of White Settlement Town of Addison
City of Whitney
City of Woodway
City of Wylie
Town of Argyle
Town of Fulton
Town of Highland Park
Town of Prosper
Town of Sunnyvale
Town of Trophy Club
Town of Woodsboro
5292210.1