Title
Consider a memorandum/resolution finding that Oncor Electric's application to change rates within the City should be denied and that reasonable rate case expenses shall be reimbursed by Oncor Electric.
Summary
DATE: October 18, 2022
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 May 13, 2022, 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 $251 million or approximately 4.5% over present revenues. The Company asks the City to approve an 11.2% increase in residential rates and a 1.6% increase in street lighting rates. The impact of this requested increase on an average residential customer using 1,300 kWh/month would be about $6.02 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. 53601) currently pending at the Commission.
All cities with original jurisdiction will need to adopt the Resolution prior to October 30, 2022.
THE ALTERNATIVES CONSIDERED:
The alternatives are to:
1. not adopt the resolution which would result in Oncor's prop...
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