HomeMy WebLinkAboutContract 48341 Y SECRETARY
ercot CONTRACT NO.�.�.�.
ELECTRIC RELIABILITY COUNCIL OF TEXAS,INC.
MEMBERSHIP APPLICATION AND AGREEMENT FOR MEMBERSHIP YEAR 2017
This Membership Application and Agreement(Agreement) is by and between Electric Reliability Council
of Texas Inc. (ERCOT) 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 ERCOT 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 (TAC)
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
.4 „� approval. Adjunct Membership does not include voting rights or the right to be elected to
4 the Board,TAC or a TAC subcommittee thereof.
;q Q 3. The Applicable Annual Member Services Fee must be delivered to ERCOT by the
rn 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: Treasury
+G Department, 7620 Metro Center Drive, Austin, Texas 78744. Please send an email to
membership a,ercot.com for wire instructions.
4. Segment Participation: (Check ONE Segment designation.)
® 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. Chapa
Title: Assistant City Manager
Address: 1000 Throckmorton St
City, State,Zip: Fort Worth,Texas, 76102
Phone: 817.392.5804
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)submitted to the ERCOT Legal Department at membership@ercot.com.
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.
BY: &r-
Printed �N'� �
Printed Name: Jesus J. Chapa
Title:Assistant City Manager
Date:.''/0
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OFFICIAL RECORD
CITY SECRETARY
FT. WORTH,TX
Lloyd 816 Congress Avenue,Suite 1900
Austin,Texas 78701
Gosselink Telephone:( 322-5800
Facsimile:(S 12)12)472-0532
��•••�� ATTORNEYS AT LAW
www.lglawfirm.com
Mr.Brewster's Direct Line:(512)322-5831
Email: cbrewster(@,lglawfmn.com
Fax: (512)472-0532
MEMORANDUM
TO: City and Other Political Subdivision Members of ERCOT
FROM: Chris Brewster
DATE: October 4, 2016
RE: ERCOT Membership Renewal for 2017
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 2017.
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 Friday, November 11,2016. 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
("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 ERGOT,
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 141 cities and other political subdivisions joined ERCOT in 2016.
With this membership strength, cities successfully elected two city representatives to TAC and one
director to ERCOT's Board of Directors for 2016. A strong contingent of city members would
make continuation of this strong presence likely for 2017.
Lloyd Gosselink Rochelle & Townsend, P.C.
7193557.1
ERCOT Member Cities
October 4, 2016
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 2017, ERCOT will
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 2017 Technical Advisory Committee and the
Board of Directors, ERCOT must receive your renewal application and $100 fee by Friday,
November 11,2016.
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 2016. We recommend that you choose the same segment when
renewing your membership for 2017. 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 ERCOT. 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.
7193557.1
ERCOT Member Cities
October 4, 2016
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 ERCOT, 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.
7193557.1
b
ERCOT Member Cities
October 4, 2016
Page 4
ERCOT Membership List for 2016
Small Commercial Large Commercial
Aransas County Municipal Utility District No. 1 Aquilla Water Supply District
City of Belton City of Abilene
City of Benbrook City of Alamo
City of Breckenridge City of Allen
City of Bridgeport City of Arlington
City of Caddo Mills City of Bedford
City of Celina City of Bellmead
City of Cedar Hill City of Big Spring
City of Clyde City of Bishop
City of Colleyville City of Brownwood
City of Colorado City City of Canton
City of Commerce City of Carrollton
City of Copperas Cove City of Coppell
City of Corinth City of Corpus Christi
City of Crockett City of Dallas
City of Crowley City of Decatur
City of Deer Park City of Denison
City of DeSoto City of Duncanville
City of Dublin City of Euless
City of Early City of Farmers Branch
City of Eastland City of Forest Hill
City of Everman City of Fort Worth
City of Fate City of Grand Prairie
City of Frisco City of Grapevine
City of George West City of Harlingen
City of Hamilton City of Hewitt
City of Harker Heights City of Houston
City of Haslet City of Irving
City of Howe City of Killeen
City of Hutto City of Kingsville
City of Ingleside City of La Feria
City of Josephine City of Lake Jackson
City of Justin City of Lewisville
City of Keller City of Mansfield
City of Kerens City of McAllen
City of Krum City of Mercedes
City of Lake Worth City of Mesquite
City of Little River-Academy City of Mission
City of Lorena City of North Richland Hills
City of Los Fresnos City of Odessa
City of Mont Belvieu City of Pearland
City of Morgan's Point 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 Piney Point Village City of Sachse
City of Point Comfort City of San Angelo
City of Pottsboro City of Seadrift
City of Ranger City of Sherman
City of River Oaks City of Stephenville
City of Rotan City of Sugar Land
City of Rowlett City of Sweetwater
City of Seagoville City of Taylor Lake Village
7193557.1
� r
ERCOT Member Cities
October 4, 2016
Page 5
Small Commercial Large Commercial
City of Snyder City of Temple
City of Spring Valley Village City of The Colony
City of Springtown City of Tyler
City of Sulphur Springs City of Vernon
City of Taft City of Victoria
City of Texas City City of Waco
City of University Park City of Watauga
City of Webster City of Waxahachie
City of Weston Lakes City of Wichita Falls
City of Wharton Johnson County Special Utility District
City of Woodway South Texas Water Authority
City of Wylie Town of Addison
Town of Argyle
Town of Fulton
Town of Highland Park
Town of Laguna Vista
Town of Prosper
Town of Trophy Club
Town of Woodsboro
7193557.1