Title
Consider a memorandum/resolution denying Oncor Electric’s application to change rates within the City.
Body
DATE: October 7, 2025
TO: Kent Cagle, City Manager
FROM: Holli Clements, City Attorney
SUBJECT: Denial of Oncor Electric’s application to change rates within the City
BACKGROUND AND FINDINGS:
On June 26, 2025 Oncor Electric Delivery Company, LLC (“Oncor” or “Company”) filed an Application with cities retaining original jurisdiction seeking to increase system-wide transmission and distribution rates by about $834 million or approximately 13% over present revenues. The Company asks the City to approve a 12.3% increase in residential rates and a 51.0% increase in street lighting rates. If approved, the impact of this requested increase on an average residential customer would be about $7.90 per month.
In a prior City action, Oncor’s rate request was suspended from taking effect for 90 days, the fullest extent permissible under the law. This time period has permitted the City, through its participation with the Steering Committee of Cities Served by Oncor (“Steering Committee”), to determine that the proposed rate increase is unreasonable. Consistent with the recommendations of the experts engaged by the Steering Committee, Oncor’s request for a rate increase should be denied.
Accordingly, the purpose of the Resolution is to deny the rate change application proposed by Oncor. Once the Resolution is adopted, Oncor will have 30 days to appeal the decision to the Public Utility Commission of Texas where the appeal will be consolidated with Oncor’s filing (i.e. PUC Docket No. 58306) currently pending at the Commission.
All cities with original jurisdiction will need to adopt the Resolution prior to October 29, 2025.
THE ALTERNATIVES CONSIDERED:
The alternatives are to:
1. Not adopt the resolution which would result in Oncor’s proposed increased rates taking effect; or
2. Adopt the resolution finding that Oncor’s application to change rates within the City should be denied and that reasonable rate case expenses shall be reimbursed by Oncor.
Which alternative is recommended? Why?
The Steering Committee recommends adoption of the resolution finding that Oncor’s application to change rates within the City should be denied and that reasonable rate case expenses shall be reimbursed by Oncor so that Oncor’s proposed rate increases do not take effect without further review by the Public Utility Commission.
CONFORMITY TO CITY POLICY:
The item conforms to law and policy.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
N/A
Is this a one-time or recurring revenue/expenditure?
N/A
Is this revenue/expenditure budgeted?
N/A
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
N/A
RECOMMENDATION:
The Steering Committee recommends adoption of the resolution finding that Oncor’s application to change rates within the City should be denied and that reasonable rate case expenses shall be reimbursed by Oncor.
DEPARTMENTAL CLEARANCES:
City Attorney
ATTACHED SUPPORTING DOCUMENTS:
Resolution
Presentation