HomeMy WebLinkAbout2015-3632 - Ordinance - 01/22/2015 ORDINANCE NO. 2015-3632
AN ORDINANCE AMENDING CHAPTER 11, "UTILITIES", SECTION 4, "ELECTRICAL
SERVICE" OF THE CODE OF ORDINANCES, CITY OF COLLEGE STATION, TEXAS, BY
ADDING SUBSECTION B ENTITLED "RISK MANAGEMENT POLICY" AS SET OUT
BELOW, AUTHORIZING PARTICIPATION IN THE ERCOT CONGESTION REVENUE
RIGHTS (CRR) MARKET AND CODIFYING PROCEDURES FOR MANAGING RISK
EXPOSURE AND THE MAINTENANCE OF ASSOCIATED DOCUMENTS; PROVIDING A
SEVERABILITY CLAUSE; DECLARING A PENALTY; AND PROVIDING AN EFFECTIVE
DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION,
TEXAS:
PART 1: That Chapter 11, "Utilities", Section 4, "Electrical Service" of the Code of
Ordinances, City of College Station, Texas, be amended as set out in Exhibit "A",
attached hereto and made a part of this ordinance for all purposes.
PART 2: That if any provisions of any section of this ordinance shall be held to be void or
unconstitutional, such holding shall in no way effect the validity of the remaining
provisions or sections of this ordinance,which shall remain in full force and effect.
PART 3: That any person, firm, or corporation violating any of the provisions of this chapter
shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be
punishable by a fine of not less than Twenty-five Dollars ($25.00) nor more than
Five Hundred Dollars ($500.00). Each day such violation shall continue or be
permitted to continue, shall be deemed a separate offense. Said Ordinance, being
a penal ordinance, becomes effective ten (10) days after its date of passage by the
City Council, as provided by Section 35 of the Charter of the City of College
Station.
PASSED, ADOPTED and APPROVED this 2'day of &/?4,4/4401,7
, 2015.
APPROVED: / , ilie-‘4
MAYOR ?go Telt(
ATTEST:
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City Secret
APPROVED:
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ORDINANCE NO. 2015-3632
EXHIBIT "A"
That Chapter 11, "Utilities", Section 4, "Electrical Service", of the Code of Ordinances, City of
College Station, Texas, is hereby amended, by adding Subsection B. "Risk Management Policy"
as set out hereafter to read as follows:
B. RISK MANAGEMENT POLICY
(1) Authority for Staff Participation in the ERCOT CRR Market.
(a) The City of College Station has the authority to participate in any Electric
Reliability Council of Texas's(ERCOT)Congestion Revenue Rights(CRR)
auction in accordance with ERCO'1 protocols and the City's policies to
cover any congestion risks associated with delivery of energy associated
with any wholesale power agreements the City has in place.
(I) The City Manager shall be responsible for market participation and
may delegate this authority to any appropriate staff member as
necessary.
a. Any representative of the City participating or evaluating the
City's participation in the CRR auction must be able to
demonstrate reasonable knowledge of CRRs and the auction
process.
b. The City Manager shall adopt procedures for administering
the City's market participation.
(b) The City Council and individual Council Members are prohibited from
trading or purchasing CRRs.
(2) Management of Risk Exposure.
(a) The City Council shall oversee all risk undertaken by the City.
(b) The City Manager must report to the City Council the following Electric-
related transactions on at least a quarterly basis:
(I) Any participation in the ERCOT CRR auction;
ORDINANCE NO. 2015-3632
(II) Any other transactions that expose the City to significant congestion
risk.
(c) The City Council shall be notified of any congestion risk exposure in the
initial report referenced in Subsection (2)(b) and shall be informed of the
level of exposure to the risk as additional information becomes available.
(d) The City Manager shall issue a report on the status of participation in the
CRR auction to the City Council on at least a quarterly basis.
(I) The report shall include performance of the previous period's CRRs
against not participating in the market.
a. Performance includes total monies spent on CRR purchases
and total monies earned on CRR revenue.
(e) Should the City Council find that the City is acting in a manner contrary to
the risk profile that the City Council had previously established, the City
Council may:
(I) Order the City to cease the offending risk exposing activities.
(II) Issue guidelines for the risk exposing activities to follow.
(III) Allow the City to continue acting as it had previously.
(3) Maintenance of Records.
The City shall maintain records of all monetary transactions and transfers related
to participation in the CRR market and of all bid prices and amounts placed in the
CRR auction for a minimum of five years or in accordance with the City's records
retention policy, whichever is longer.