Discuss, consider and take appropriate action to authorize the County Judge to sign letter notifying Cavallo Energy Texas LLC of good faith dispute involving inflated invoice charges for Transmission and Distribution Losses and UFE Fees during February 2021 weather event and asking for reissued invoices in the best interest of the taxpayers of Williamson County, Texas.

Williamson County is a member of P3 (Public Power Pool) for electricity.  They have advised the County to dispute recent electric bills from Calvallo that include an inflated line item charge for "T&D Losses" - also known as "Line Losses". And to also dispute charges referred to as a UFE fee.  These charges are a result of the February 2021 Winter Weather event.  There is much discussion about easing the burden on consumers and potential legal, regulatory and legislative action is expected over the coming weeks and months.  Until state officials have properly clarified the situation, P3 regards a delay in the payment of line losses as prudent.  

Under Article 6(h) of the contract, if there is a good faith dispute regarding any invoice, the member will pay the undisputed amount of the invoice and notify the provider of the dispute within 21 days of receiving the invoice.  The attached letter was drafted by County legal and from guidance provided by P3.