HomeMy WebLinkAboutRES 2020-012 RESOLUTION NO. 2020-012
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 TO INCREASE DISTRIBUTION
RATES WITHIN THE CITY SHOULD BE DENIED;
AUTHORIZING PARTICIPATION WITH ONCOR CITIES
STEERING COMMITTEE; AUTHORIZING THE HIRING OF
LEGAL COUNSEL AND CONSULTING SERVICES;
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 Oncor Cities Steering Committee ("OCSC") is a coalition 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 in matters before the Public Utility Commission ("Commission") and the courts; and
WHEREAS, on or about April 3, 2020, Oncor filed with the Commission an
Application to Amend its Distribution Cost Recovery Factor("DCRF"), Commission Docket
No. 50734, seeking to increase distribution rates by $75.9 million annually (an
, approximately $0.88 increase to the average residential customer's bill); and
WHEREAS, the City of Grapevine will cooperate with OCSC in coordinating their
review of Oncor's DCRF filing with designated attorneys and consultants, prepare a
common response, negotiate with the Company, and direct any necessary litigation, to �
resolve issues in the Company's filing; and
WHEREAS, all electric utility customers residing in the City will be impacted by this
ratemaking proceeding if it is granted; and
WHEREAS, working with the OCSC to review the rates charged by Oncor allows
members to accomplish more collectively than each city could do acting alone; and
WHEREAS, OCSC's members and attorneys recommend that members deny
Oncor's 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
interest of the health, safety, and welfare of the public.
NOW, THEREFORE BE IT RESOLVED 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 OCSC in Commission
Docket No. 50734.
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 Oncor's DCRF
application.
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 r.eimbursed.
in #ull by Oncor within 30 days of the adoption of this Resolution.
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 Tab Urbantke,Attorney
for Oncor, at Hunton Andrews Kurth LLP, 1445 Ross Avenue, Suite 3700, Dallas, Texas
75202, and to Thomas Brocato, General Counsel to OCSC, at Lloyd Gosselink Rochelle
& Townsend, P.C., P.O. Box 1725, Austin, TX 78767-1725, or tbrocato(c�lqlawfirm.com.
Section 9. That this resolution shall take effect from and after the date of its
passage.
Resolution No. 2020-012 2
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE,
TEXAS on this the 2nd Day of June, 2020.
APPROVED:
William . Tate
Mayor ti
ATTEST:
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Tara Brooks u,�
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City Secretary �`� ,� �'
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APPROVED AS TO FORM:
City Attorney
Resolution No. 2020-012 3