Agenda - City of Dallas

KEY FOCUS AREA:
Economic Vibrancy
AGENDA ITEM # 50
AGENDA DATE: February 22, 2012
COUNCIL DISTRICT(S):
DEPARTMENT:
Outside City Limits
Water Utilities
CMO: Forest E. Turner, 670-3390
MAPSCO:
SUBJECT
Outside City Limits
________________________________________________________________
Authorize a short-term contract with Luminant Generation Company LLC for untreated
water service for the period January 1, 2012 through December 31, 2013 - Estimated
Annual Revenue: $1,229,892
BACKGROUND
This item is for authorization to enter into a short-term untreated water contract with
Luminant Generation Company LLC (“Luminant”) for 8,000 acre-feet (2,606,808,000
gallons) of Dallas’ Lake Fork water per year in calendar year 2012 and up to 8,000
acre-feet of Lake Fork water in calendar year 2013 for a combined total of up to 16,000
acre-feet (5,213,616,000 gallons) of water. Untreated water purchased by Luminant
under this contract will be used at Luminant’s Martin Lake Power Plant.
In 1981, the City of Dallas entered into a contractual relationship for water with the
Sabine River Authority (SRA) who is the owner and operator of the Lake Fork reservoir,
which is located in the Sabine River Basin in East Texas. As a result, Dallas has rights
to 74 percent of the dependable yield of Lake Fork not to exceed 131,860 acre-feet of
water per year.
Luminant (formerly Texas Utilities Electric Company) is also party to the 1981 contract,
as well as the First Supplement to the contract that was signed in 1986. Included in this
contract as supplemented is the option for Luminant to purchase up to 17,000
acre-feet/year of Lake Fork water from Dallas.