Texas TDU Informs REPs of New Franchise Fees To Be Charged To REPs
November 14,2016
Texas-New Mexico Power has informed retail electric providers of new amounts for the franchise fee applicable to only those customers residing within the city limits of Texas City.
As the result of the negotiation of a new franchise agreement between TNMP and the City of Texas City, the City of Texas City passed an increase of its franchise fee. The new franchise fee is:
• Total Transmission customers franchise fee will be $0.001750/kWh
• Non-Transmission customers franchise fee will be $0.0026358/kWh
New Rider MFFA – Municipal Franchise Fee Adjustment, with an implementation date of January 1, 2017, will collect the incremental increase of franchise fee not embedded in existing rates or separately line-itemed for Transmission customers. Rider MFFA amounts will be:
Texas City – Non Transmission Service Customers: $0.0014608/kWh
Texas City – Transmission Service Customers: $0.0005750/kWh
Incremental franchise fees will be sent on 810_02 using SAC04 code "ADJ006" with description Franchise Fees.
In addition, the City of Texas City's ordinance includes a 4% franchise fee assessment for Non-construction service discretionary fees, similar to the existing agreement in Lewisville.