HomeMy WebLinkAboutRES 2008-036 RESOLUTION NO. 2008-36
A RESOLUTION OF THE CITY OF GRAPEVINE, TEXAS
FINDING THAT ONCOR ELECTRIC COMPANY'S
REQUESTED INCREASES TO ITS ELECTRIC
TRANSMISSION AND DISTRIBUTION RATES AND
CHARGES 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, pursuant to § 33.001 of the Public Utility Regulatory Act ("PURA"),
the City has exclusive original jurisdiction over the electric rates, operations, and
services provided within city limits;
WHEREAS, on or about June 27, 2008, Oncor Electric Delivery Company
("Oncor" or "Company"), pursuant to PURA §§ 33.001 and 36.001 filed with the City of
Grapevine ("City") a Statement of Intent to increase electric transmission and delivery
rates by $275 million on a system-wide basis within its service area effective August 8,
2008; and
WHEREAS, pursuant to PURA § 36.108, the City lawfully suspended the August
8, 2008, effective date by resolution to provide time to study the reasonableness of the
Company's application to increase rates; and
WHEREAS, the City is a member of the Oncor Cities Steering Committee
(Steering Committee) and has cooperated with 145 similarly situated city members to
conduct a review of the Company's application, to hire and direct legal counsel and
consultants, to prepare a common response to the filing, to negotiate with the Company
and to direct any necessary litigation appealing final city action; and
WHEREAS, the City, in a reasonably noticed meeting that was open to the
public, considered the Company's application; and
WHEREAS, the consultants who were retained by the Steering Committee to
evaluate the merits of the Company's application have determined that the Company's
requested $275 million increase in revenues for its transmission and distribution system
is not supported by evidence; and
WHEREAS, PURA § 33.023 provides that reasonable costs incurred by cities in
ratemaking activities are to be reimbursed by the regulated utility.
RES. NO. 2008-36 1
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That the rates proposed by Oncor Electric Delivery Company, to be
recovered through its electric transmission and distribution rates charged to customers
located within the City limits, are hereby found to be unreasonable and shall be denied.
Section 2. That the Company shall continue to charge its existing rates for
transmission and distribution services to customers within the City.
Section 3. That the City's reasonable rate case expenses shall be reimbursed
by Oncor.
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 Debra
Anderson, Oncor Electric Delivery Company, 1601 Bryan St., Suite 23-055C, Dallas,
Texas 75201 and to Geoffrey Gay, General Counsel to the Oncor Cities 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 COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 4th day of November, 2008.
APPROVED:
William D. Tate
Mayor
RES. NO. 2008-36 2
ATTEST:
Lin a Huff ..14‘.1/e/
City Secretary
APPROVED AS TO FORM:
John F. Boyle, Jr.
City Attorney
RES. NO. 2008-36 3