HomeMy WebLinkAboutItem 12 - Oncor ElectricMEMOTO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: MAY 21, 2019
SUBJECT: DENIAL OF ONCOR'S DISTRIBUTION COST RECOVERY FACTOR
(DCRF) FILING
RECOMMENDATION: City Council to consider a resolution denying the DCRF application
proposed by Oncor.
FUNDING SOURCE:
BACKGROUND: On April 8, 2019, Oncor Electric Delivery Company LLC filed an
Application for Approval of a Distribution Cost Recover 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 $29,433,804.
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.
City Council Utility Committee and City staff recommend approval.
RESOLUTION NO. 2019-025
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, FINDING THAT ONCOR ELECTRIC
DELIVERY COMPANY LLC'S APPLICATION FOR
APPROVAL TO AMEND ITS DISTRIBUTION COST
RECOVERY FACTOR PURSUANT TO 16 TEX. ADMIN.
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
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" or "Cities"), 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 8, 2019 Oncor filed with the City an Application for
Approval to Amend its Distribution Cost Recovery Factor ("DCRF"), PUC Docket No.
49427, seeking to increase electric distribution rates by approximately $29,433,804; 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 as by reference as if copied in their entirety.
Section 2. That the City is authorized to participate with OCSC in PUC Docket
No. 49427.
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
Rochelle & Townsend, P.C. 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 Matthew C. Henry,
1616 Woodall Rodgers Freeway, Dallas, Texas 75202 and to Thomas Brocato, Legal
Counsel to OCSC, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725,
Austin, Texas 78767-1725.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 21st day of May, 2019.
APPROVED:
William D. Tate
Mayor
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ATTEST:
Tara Brooks
City Secretary
APPROVED AS TO FORM:
City Attorney
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