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    7. 20.    
Regular City Council Meeting
Meeting Date: 12/03/2019  

Information
Agenda Item
Resolution - Lubbock Power & Light: Consider a resolution regarding the intent of the City Council of the City of Lubbock, to convey certain lands to Oncor Electric Delivery Company (“Oncor”), pursuant to the previously approved Participation Agreement and the consideration for services provided therein.
Item Summary
LP&L filed before the Public Utility Commission of Texas (“PUC”) its Application of the City of Lubbock Through Lubbock Power and Light for Authority to Connect a Portion of its System with the Electric Reliability Council of Texas (“ERCOT”), Docket Number 47576 (the “Application”), on or about September 1, 2017.  The portion of LP&L’s load subject to that Application is more particularly defined therein and herein as the “Affected Load.”
 
The PUC approved LP&L’s Application to integrate the Affected Load into ERCOT by its Order dated March 15, 2018, in PUC Docket No. 47576, styled Application for the City of Lubbock through Lubbock Power and Light for Authority to Connect a Portion of its System with the Electric Reliability Council of Texas (the “Order”).

Staff recommends the Council consider the Resolution and take any action it deems appropriate.
 
As a part of Order, the PUC ordered LP&L and Sharyland Utilities (“Sharyland”), as end point owners of the subject transmission infrastructure (“Infrastructure”) required to be constructed to integrate the Affected Load into ERCOT, to agree to the split of ownership of such Infrastructure.  This agreement was accomplished through the Participation Agreement (the “PA”), entered into by and between LP&L and Sharyland.
 
As a part of the PA and in consideration for services provided to LP&L therein, LP&L committed to convey certain lands owned by it to Sharyland to be used for the construction and operation of the 345 kV Wadsworth Substation (the “345 kV Wadsworth Substation”).
 
Subsequent to entering into the PA, Sharyland was acquired by merger and acquisition by Oncor Electric Delivery Company LLC (“Oncor”).  As part of the merger and acquisition, Oncor succeeded to all benefits and obligations of Sharyland under the PA.
 
The Certificate of Convenience and Necessity proceedings involving routing of the Infrastructure as concerns the proposed Abernathy to Wadsworth 345-kV Transmission Line in Hale and Lubbock Counties, PUC Docket No. 48668, and the proposed Wadsworth to New Oliver to Farmland 345 kV Transmission Line in Lubbock and Lynn Counties and the proposed Southeast to New Oliver to Oliver 115 kV Transmission Line in Lubbock County, PUC Docket No. 48909 (the “Subject CCN Cases”), involve the location of the future 345 kV Wadsworth Substation.
 
Due to the routing requirements in the Subject CCN Cases, relative certainty as to the location of the 345 kV Wadsworth Substation is necessary.  That proposed location is included as Exhibit A to the attached Resolution.  This Resolution simply reflects the intent of the Council to convey the property roughly depicted in Exhibit A as the “Updated Proposed Wadsworth 345-kV Site,” attached to the Resolution, to Oncor (i) upon terms and provisions mutually acceptable to LP&L and Oncor; and (ii) to satisfy the covenants provided in the PA for the construction and operation of the 345 kV Wadsworth Substation.
Fiscal Impact
The only fiscal impact has already been approved by the Electric Utility Board and the City Council as part of the Participation Agreement.
Staff/Board Recommending
David McCalla, Director of Electric Utilities
Electric Utility Board

Attachments
8634_Wadsworth Resolution
LP&L Map - Wadsworth (s)

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