TITLE
Consider a memorandum/resolution to suspend the April 21, 2017, effective date of Oncor Electric Delivery Company’s requested rate change and approving cooperation with the Steering Committee of Cities Served by Oncor.
SUMMARY
DATE: March 20, 2017
TO: Ronald L. Olson, City Manager
VIA: Kathy Davis, City Attorney
FROM: Traci Briggs, Deputy City Attorney
SUBJECT: Suspending the effective date of Oncor’s requested rate change
BACKGROUND AND FINDINGS:
By state law, cities have original jurisdiction over the rates of electric providers. When a provider wants to increase its rates, it must therefore make a request to each individual city it serves. On March 17, 2017, Oncor Electric Delivery Company (“Oncor”) filed an application to increase system-wide transmission and distribution rates by $317 million, or approximately 7.5%. This increase includes an 11.8% increase in residential rates, meaning a typical residential customer using 1000kWh per month would see in a monthly increase of $6.68. The application also includes a 0.5% increase in street light rates. The effective date of the rates would be effective April 21, 2017. Although there have been rate increases in recent years, this is the first comprehensive base rate case since 2011.
The city is a member of a 156-city coalition known as the Steering Committee of Cities Served by Oncor (“Steering Committee”). The Steering Committee serves as a public interest advocate before the Legislature, the Courts and the Public Utility Commission on electric utility regulation matters. It also provides regulatory guidance to cities.
State law permits cities to suspend a rate change for ninety (90) days after the rates would otherwise be effective for any legitimate purpose. By suspending the effective date, the Steering Committee will have adequate time to study and investigate the application, as well as negotiate rates. The rate case expenses, including retained attorneys and consultants, are reimburse...
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