HomeMy WebLinkAboutItem 10 - Oncor Rate FilingMEMO TO:
FROM:
MEETING DATE:
SUBJECT:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
BRUNO RUMBELOW, CITY MANAGER
JUNE 5, 2018
RESOLUTION DENYING ONCOR'S DISTRIBUTION COST RECOVERY
FACTOR (DCRF) FILING APPLICATION
RECOMMENDATION: City Council to consider a resolution denying the DCRF application
proposed by Oncor.
FUNDING SOURCE:
BACKGROUND:
On April 5, 2018, Oncor Electric Delivery Company LLC ("Oncor" or
"Company") filed an Application for Approval of a Distribution Cost
Recovery Factor ("DCRF") to Increase Distribution Rates with each of the
cities in their service area. In the filing, the Company asserts that it is
seeking an increase in distribution revenues of $19,002,177.
The resolution authorizes the City to join with the Steering Committee of
Cities Served by Oncor ("OCSC") to evaluate the filing, determine whether
the filing complies with law, and if lawful, to determine what further
strategy, including settlement, to pursue.
The resolution denies the increase so it won't go into effect until there is
resolution from OCSC regarding whether an increase is justified and, if so,
what it should be.
Oncor is required to reimburse for any reasonable expenses required to
review the application.
Staff and the Utilities Commitee recommend approval.
RESOLUTION NO. 2018-046
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS FINDING THAT ONCOR ELECTRIC
DELIVERY COMPANY LLC'S APPLICATION FOR
APPROVAL OF A DISTRIBUTION COST RECOVERY
FACTOR PURSUANT TO 16 TEXAS ADMINISTRATION
CODE §25.243 TO INCREASE DISTRIBUTION RATES
WITHIN THE CITY SHOULD BE DENIED; FINDING THAT
THE CITY'S REASONABLE RATE CASE EXPENSES
SHALL BE REIMBURSED BY THE COMPANY; 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; AND PROVIDING
AN EFFECTIVE DATE
WHEREAS, the City of Grapevine, Texas ("City") is an electric utility customer of
Oncor Electric Delivery Company LLC ("Oncor" or "Company"), and a regulatory
authority with an interest in the rates and charges of Oncor; and
WHEREAS, the City is a member of the Steering Committee of Cities Served by
Oncor ("OCSC"), a membership of similarly situated cities served by Oncor that have
joined together to efficiently and cost effectively review and respond to electric issues
affecting rates charged in Oncor's service area; and
WHEREAS, on or about April 5, 2018 Oncor filed with the City an Application for
Approval of a Distribution Cost Recovery Factor ("DCRF"), PUC Docket No. 48231,
seeking to increase electric distribution rates by approximately $19,002,177; and
WHEREAS, all electric utility customers residing in the City will be impacted by
this ratemaking proceeding if it is granted; and
WHEREAS, Cities are coordinating its review of Oncor's DCRF filing with
designated attorneys and consultants to resolve issues in the Company's application;
and
WHEREAS, Cities members and attorneys recommend that members deny the
DCRF; and
WHEREAS, all constitutional and statutory prerequisites for the approval of this
resolution have been met, including but not limited to the Open Meetings Act; and
WHEREAS, the City Council deems the adoption of this resolution to be in the
best interests of the health, safety, and welfare of the public.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That all matters stated hereinabove are found to be true and correct
and are incorporated herein by reference as if copied in their entirety.
Section 2. That the City is authorized to participate with Cities in PUC Docket
No. 48231.
Section 3. That subject to the right to terminate employment at any time, the
City of Grapevine hereby authorizes the hiring of the law firm of Lloyd Gosselink and
consultants to negotiate with the Company, make recommendations to the City
regarding reasonable rates, and to direct any necessary administrative proceedings or
court litigation associated with an appeal of this application filed with the PUC.
Section 4. That the rates proposed by Oncor to be recovered through its
DCRF charged to customers located within the City limits, are hereby found to be
unreasonable and shall be denied.
Section 5. That the Company shall continue to charge its existing rates to
customers within the City.
Section 6. That the City's reasonable rate case expenses shall be reimbursed
in full by Oncor within 30 days of presentation of an invoice to Oncor.
Section 7. 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 8. That a copy of this Resolution shall be sent to Stephen N. Ragland,
1616 Woodall Rodgers Freeway, Dallas, Texas 75202 and to Thomas Brocato, General
Counsel to the Cities, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725,
Austin, Texas 78767-1725.
Section 9. That this resolution shall take effect from and after the date of its
passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 5th day of June, 2018.
APPROVED:
William D. Tate
Mayor
Resolution No. 2018-046 2
ATTEST:
Tara Brooks
City Secretary
APPROVED AS TO FORM:
City Attorney
Resolution No. 2018-046 3