Title
Consider a memorandum/resolution suspending the effective date of Oncor's requested rate change and approving cooperation with the Steering Committee of Cities served by Oncor.
Body
DATE: July 15, 2025
TO: Kent Cagle, City Manager
FROM: Holli Clements, City Attorney
SUBJECT: Suspend the effective date of Oncor's requested rate change and approving cooperation with the Steering Committee of Cities served by Oncor
BACKGROUND AND FINDINGS:
Oncor Electric Delivery Company ("Oncor" or "the Company") filed an application on or about June 26, 2025 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, an average residential customer would see a bill increase of about $7.90 per month.
The resolution suspends the July 31, 2025 effective date of the Company's rate increase for the maximum period permitted by law to allow the City, working in conjunction with the Steering Committee of Cities Served by Oncor, to evaluate the filing, determine whether the filing complies with law, and if lawful, to determine what further strategy, including settlement, to pursue.
The law provides that a rate request made by an electric utility cannot become effective until at least 35 days following the filing of the application to change rates. The law permits the City to suspend the rate change for 90 days after the date the rate change would otherwise be effective. If the City fails to take some action regarding the filing before the effective date, Oncor's rate request is deemed administratively approved.
THE ALTERNATIVES CONSIDERED:
The city council may decline to suspend the effective date of Oncor's requested rate case and participation with the Steering Committee or approve suspending the effective dat...
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