HomeMy WebLinkAboutItem 03 - Oncor Rate FilingITEM #
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: FEBRUARY 1, 2011
SUBJECT: ONCOR RATE FILING
RECOMMENDATION:
City Council to consider a resolution suspending a rate increase request made by Oncor
Electric Delivery_
BACKGROUND:
Oncor Electric Delivery Company ( "Oncor" or "the Company ") filed an application on or
about January 7, 2011 with cities retaining original jurisdiction seeking to increase
system -wide transmission and distribution rates by $353 million. The Company asks the
City to approve a 14.6 % increase in residential rates, a 15.5 % increase in commercial
rates, and a 25.9 % increase in street lighting rates. According to Oncor, annual rates
would increase by approximately $60 for an average residential customer.
The resolution suspends the February 14, 2011 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.
Staff and the City Council Utility Committee recommends approval.
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, SUSPENDING THE FEBRUARY 14,
2011, EFFECTIVE DATE OF ONCOR ELECTRIC
DELIVERY COMPANY'S REQUESTED RATE CHANGE TO
PERMIT THE CITY TIME TO STUDY THE REQUEST AND
TO ESTABLISH REASONABLE RATES; APPROVING
COOPERATION WITH THE STEERING COMMITTEE OF
CITIES SERVED BY ONCOR TO HIRE LEGAL AND
CONSULTING SERVICES AND TO NEGOTIATE WITH
THE COMPANY AND DIRECT ANY NECESSARY
LITIGATION AND APPEALS; FINDING THAT THE
MEETING AT WHICH THIS RESOLUTION IS PASSED IS
OPEN TO THE PUBLIC AS REQUIRED BY LAW;
REQUIRING NOTICE OF THIS RESOLUTION TO THE
COMPANY AND LEGAL COUNSEL FOR THE STEERING
COMMITTEE AND PROVIDING AN EFFECTIVE DATE
WHEREAS, on or about January 7, 2011, Oncor Electric Delivery Company
( Oncor), pursuant to PURA §§ 33.001 and 36.001 filed with the City of Grapevine,
Texas a Statement of Intent to increase electric transmission and distribution rates in all
municipalities exercising original jurisdiction within its service area effective February
14, 2011; and
WHEREAS, the City of Grapevine, Texas is a member of the Steering Committee
of Cities Served by Oncor ( "Steering Committee ") and will cooperate with the 146
similarly situated city members and other city participants in conducting a review of the
Company's application and to hire and direct legal counsel and consultants and to
prepare a common response and to negotiate with the Company prior to setting
reasonable rates and direct any necessary litigation; and
WHEREAS, PURA § 36.108 grants local regulatory authorities the right to
suspend the effective date of proposed rate changes for ninety (90) days after the date
the rate change would otherwise be effective, and
WHEREAS, PURA § 33.023 provides that costs incurred by Cities in ratemaking
activities are to be reimbursed by the regulated utility.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That the February 14, 2011 effective date of the rate request
submitted by Oncor on or about January 7, 2011, be suspended for the maximum
period allowed by law to permit adequate time to review the proposed changes and to
establish reasonable rates.
Section 2. That as indicated in the City's resolution approving membership in
the Steering Committee, the Executive Committee of the Steering Committee is
authorized to hire and direct legal counsel and consultants, negotiate with the
Company, make recommendations regarding reasonable rates, and to intervene and
direct any necessary administrative proceedings or court litigation associated with an
appeal of a rate ordinance and the rate case filed with the City or Public Utility
Commission.
Section 3, That the City's reasonable rate case expenses shall be reimbursed
by Oncor on a monthly basis.
Section 4. That it is hereby officially found and determined that the meeting at
Which this resolution is passed is open to the public as required by law and the public
notice of the time, place, and purpose of said meeting was given as required.
Section 5. That a copy of this resolution shall be sent to Oncor, care of Autry
Warren, Oncor Electric Delivery Company, LLC, 1601 Bryan St., 23rd Floor, Dallas,
Texas 75201 and to Geoffrey Gay, General Counsel to the Steering Committee, at
Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-
1725.
Section 6. That this resolution shall take effect from and after the date of its
passage.
PASSED AND APPROVED BY THE CITY COUCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 1 st day of February, 2011.
APPROVED:
ATTEST:
RES. NO. 2