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HomeMy WebLinkAboutContract 52936-R1 e rc o t1 CSC No. 52936- Rl ELECTRIC RELIABILITY COUNCIL OF TEXAS, INC. MEMBERSHIP APPLICATION AND AGREEMENT FOR MEMBERSHIP YEAR 2021 This Membership Application and Agreement for Membership Year 2021 (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 2021 (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). 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 Bylaws and entitle Members to services ERCOT provides such as hosting ERCOT meetings, providing Members with necessary information and such other Member services as ERCOT may from time to time offer. OFFICIAL RECORD CITY SECRETARY FT.WORTH, TX ERCOT Membership Application and Agreement for Membership Year 2021 ERCOT Public Page 1 ® 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 received by 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 2021 . As a result of the Coronavirus- 19 pandemic, ERCOT has implemented a mandatory work-from-home policy for all ERCOT staff not required to be on site to fulfill ERCOT's functions. During this time, ERCOT has reduced staff available to receive, distribute, and manage incoming postal mail, deliveries, faxes on a daily basis. As such, ERCOT requests submission of all Annual Member Dues by wire transfer. Contact ERCOT at membership(a-)-ercot.com for electronic funds transfer instructions. ERCOT Membership Application and Agreement for Membership Year 2021 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 2021 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 2021 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: Dana Burghdoff Title: Assistant City Manager Address: 200 Texas St. City, State, Zip: Fort Worth, TX, 76102 Phone: 817-392-8018 Email: Dana.Burghdoff(aD_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: Roger M. Venables Title: Assistant Property Management Director Address: 900 Monroe St, Suite 400 City, State, Zip: Fort Worth, TX 76102 Phone: 817.392.6334 Email: roger.venables(cDfortworthtexas._gov 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 2021 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 2021 begins on January 1 , 2021 , and ends on December 31 , 2021 . The term of this Agreement begins on the Effective Date and ends on December 31 , 2021 . 3. Record Date. The record date for Membership Year 2021 is Friday, November 6, 2020 (Record Date). Only applicants who have been approved as Corporate Members for Membership Year 2021 as of the Record Date shall be eligible to cast votes at the Annual Membership Meeting on December 8, 2020, including votes to confirm the 2021 ERCOT Board of Directors who serve from January 1 , 2021 , through December 31 , 2021 . 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 2021 ERCOT Public Page 6 For the reasons stated in Paragraph 3 in connection with the Coronavirus- 19 pandemic, ERCOT requests submission of all Annual Member Dues by wire transfer and all signed Applications for Membership by email to Membership@ercot.com. 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(cD_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. IN WITNESS WHEREOF, Applicant certifies that: ERCOT Membership Application and Agreement for Membership Year 2021 ERCOT Public Page 7 (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: Dana Burghdoff(.O 5,2026&16 CDT) Printed Name: Dana Burghdoff Title: Assistant City Manager Date: 10/05/2020 OFFICIAL RECORD CITY SECRETARY FT.WORTH, TX ERCOT Membership Application and Agreement for Membership Year 2021 ERCOT Public Page 8 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" Name of Employee/Signature Energy ger Title ❑ This form is N/A as No City Funds are associated with this Contract Printed Name Signature pdovapp�� ppF QORt as 1 oo �o �� L�d�d APPROVED AS TO FORM AND LEGALITY: ATTESTED BY: d�oo o�=� Pado ,o*� far Ronald P. Gonzales aQ4 nez p5aap Christopher A stria(Oct 16,202016:25 CDT) for Ronald P.Gonzales(Oct 16,202016:27 CDT) Christopher K. Austria, Assistant City Attorney Mary J. Kayser, City Secretary NO M&C REQUIRED --:4— Roger M. Venables, Assistant Director OFFICIAL RECORD CITY SECRETARY FT.WORTH, TX Lloyd 816 Congress Avenue,Suite 1900 Austin,Texas 78701 Gosselink Telephone: ( 322-5800 „ Facsimile: (512)12)472-0532 ATTORNEYS AT LAW www.lglawfirm.com Mr.Brewster's Direct Line:(512)322-5831 Email: cbrewster ,lylawfirm.com Fax: (512)472-0532 MEMORANDUM TO: City and Other Political Subdivision Members of ERCOT FROM: Chris Brewster DATE: October 2, 2020 RE: ERCOT Membership Renewal for 2021 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 2021. 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 6, 2020. 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 ERGOT, 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 125 cities and other political subdivisions joined ERCOT in 2020. With this membership strength, cities successfully elected two city representatives to TAC and one director to ERCOT's Board of Directors for 2021. A strong contingent of city members would make continuation of this strong presence likely for 2021. 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 2021, ERCOT and the PUC will continue their work on several major market redesign initiatives. As a result, Cities' presence in the ERCOT process as a voice for consumers continues to be important. Lloyd Gosselink Rochelle &Townsend, P.C. ERCOT Member Cities October 2, 2020 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 2021 Technical Advisory Committee and the Board of Directors, ERCOT must receive your renewal application and $100 fee by Friday, November 6,2020. 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 2020. We recommend that you choose the same segment on Question No. A.4 when renewing your membership for 2021. Please call me (Chris Brewster) at 512-402-4311 (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. 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 ERGOT. • Item A.3 on the form states the address at which to mail the form to ERGOT, but this can also be done by email: membership@ercot.com. Please note that if you submit your application via email, you must still send the $100 fee to ERCOT by wire transfer. Due to precautions in place related to COVID-19, ERCOT is requiring submission of all Annual Member Dues by wire transfer; ERCOT is NOT accepting credit card or check payments this year. Contact ERCOT at membership@ercot.com for electronic funds transfer instructions. If payment by wire presents a difficulty for you, please contact Chris Brewster by email at cbrewster(Llglawfirm.com, or at (512) 402-4311. • After you have sent your application to ERCOT, please forward a copy of your application to us at cbrewster@lglawfirm.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. 8130889 ERCOT Member Cities October 2, 2020 Page 3 SMALL COMMERCIAL 54. City of Seagoville 107. City of Seadrift 1. Aransas Co. Municipal Utility 55. City of Simonton 108. City of Stephenville District No. 1 56. City of Snyder 109. City of Sugar Land 2. City of Benbrook 57. City of Springtown 110. City of Sulphur Springs 3. City of Breckenridge 58. City of Texas City 111. City of Sweetwater 4. City of Bridgeport 59. City of Webster 112. City of Taylor Lake Village 5. City of Burkburnett 60. City of Weston Lakes 113. City of Temple 6. City of Cedar Hill 61. City of Wharton 114. City of The Colony 7. City of Celina 62. City of White Settlement 115. City of Tyler 8. City of Clear Lake Shores 63. City of Woodway 116. City of Vernon 9. City of Colleyville 64. City of Wylie 117. City of Victoria 10. City of Colorado City 65. Town of Fulton 118. City of Waco 11. City of Copperas Cove 66. Town of Highland Park 119. City of Watauga 12. City of Corinth 67. Town of Laguna Vista 120. City of Waxahachie 13. City of Crowley 68. Town of Lakeside 121. City of Wichita Falls 14. City of Dalworthington Gardens 69. Town of Prosper 122. Housing Authority of the City of 15.. City of De Soto 70. Town of Trophy Club Harlingen dba Harlingen 16. City of Dublin LARGE COMMERCIAL Housing Authority 17. City of Duncanville 71. Aquilla Water Supply District 123. Johnson County Special Utility 18. City of Early 72. City of Alamo District 19. City of Eastland 73. City of Allen 124. South Texas Water Authority 20. City of Ennis 74. City of Arlington 125. Town of Flower Mound 21. City of Everman 75. City of Bedford 22. City of Fate 76. City of Bellmead 23. City of Frisco 77. City of Brownwood 24. City of Glenn Heights 78. City of Canton 25. City of Hamilton 79. City of Carrollton 26. City of Harker Heights 80. City of Cleburne 27. City of Haslet 81. City of Coppell 28. City of Hewitt 82. City of Corpus Christi 29. City of Howe 83. City of Dallas 30. City of Ingleside 84. City of Decatur 31. City of Josephine 85. City of Denison 32. City of Keller 86. City of Euless 33. City of Krum 87. City of Farmers Branch 34. City of La Feria 88. City of Fort Worth 35. City of La Marque 89. City of Grand Prairie 36. City of Lake Worth 90. City of Grapevine 37. City of Lancaster 91. City of Houston 38. City of Lorena 92. City of Irving 39. City of Morgan's Point 93. City of Killeen 40. City of Murchison 94. City of Kingsville 41. City of Oak Point 95. City of Lake Jackson 42. City of Ovilla 96. City of Lewisville 43. City of Paris 97. City of McAllen 44. City of Piney Point Village 98. City of Mercedes 45. City of Point Comfort 99. City of Mesquite 46. City of Portland 100. City of Midlothian 47. City of Pottsboro 101. City of Mont Belvieu 48. City of Rhome 102. City of North Richland Hills 49. City of River Oaks 103. City of Odessa 50. City of Rotan 103. City of Richland Hills 51. City of Rowlett 104. City of Robinson 52. City of Sachse 105. City of Rockport 53. City of Saginaw 106. City of San Angelo 8130889