HomeMy WebLinkAboutItem 09 - ONCOR RateMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: JUNE 7, 2022
SUBJECT: RESOLUTION SUSPENDING EFFECTIVE DATE OF ONCOR'S
REQUEST FOR RATE CHANGE
RECOMMENDATION: City Council to consider a resolution suspending Oncor Electric Delivery's
request for a rate increase to allow for time to study the request and
establish reasonable rates.
FUNDING SOURCE: Not applicable
BACKGROUND: Oncor Electric Delivery Company filed a Statement of Intent to Increase
Rates on May 13, 2022 with cities retaining original jurisdiction seeking to
increase system -wide transmission and distribution rates by
approximately $251 million or approximately 4.5% over present revenues.
The Company asks the City to approve an 11.2% increase in residential
rates and a 1.6% increase in street lighting rates. If approved, a
residential customer using 1300 kWh per month would see a bill increase
of about $6.02 per month.
The rate increase requested will become effective on June 17, 2022
unless the City passes a resolution to suspend the effective date. The
Oncor Steering Committee consultants will review the filing and make a
recommendation to consider later this summer.
Staff recommends approval of the resolution.
RESOLUTION NO. 2022-005
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE SUSPENDING THE JUNE 17, 2022
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
WHEREAS, on or about May 13, 2022, Oncor Electric Delivery Company
(Oncor), pursuant to PURA §§ 33.001 and 36.001 filed with the City of Grapevine a
Statement of Intent to increase electric transmission and distribution rates in all
municipalities exercising original jurisdiction within its service area effective June 17,
2022; and
WHEREAS, the City of Grapevine is a member of the Steering Committee of
Cities Served by Oncor ("Steering Committee") and will cooperate with the 169 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 getting
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
proceedings are to be reimbursed by the regulated utility; and
WHEREAS, all legal prerequisites for the adoption of this resolution have been met,
including but not limited to the Local Government Code and the Open Meetings Act; and
WHEREAS, the City Council hereby declares that the approval of this resolution
is in the best interests of the health, safety, and welfare of the public.
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 June 17, 2022 effective date of the rate request submitted
by Oncor on or about May 13, 2022, be suspended for the maximum period allowed by
law to permit adequate time to review the proposed changes and to establish
reasonable rates.
Section 3. As indicated in the City's resolution approving membership in the
Steering Committee, the Executive Committee of 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 4. That the City's reasonable rate case expenses shall be reimbursed
by Oncor.
Section 5. 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 6. A copy of this Resolution shall be sent to Oncor, Care of Howard V.
Fisher, Oncor Electric Delivery Company LLC, 1616 Woodall Rodgers Freeway, Dallas,
Texas 75202 and to Thomas Brocato, Counsel to the Steering Committee, 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 7th day of June, 2022.
APPROVED:
William D. Tate
Mayor
RESOLUTION NO. 2022-005 2
ATTEST:
Tara Brooks
City Secretary
APPROVED AS TO FORM:
Matthew C.G. Boyle
City Attorney
RESOLUTION NO. 2022-005