HomeMy WebLinkAboutItem 19 - Oncor RateMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: OCTOBER 18, 2022
SUBJECT: ONCOR RATE INCREASE DENIAL RESOLUTION
RECOMMENDATION: City Council to consider a resolution denying a rate increase request
made by Oncor Electric Delivery.
FUNDING SOURCE:
BACKGROUND: On May 13, 2022, Oncor Electric Delivery Company LLC filed an
application with cities retaining original jurisdiction seeking to increase
system -wide transmission and distribution rates by about $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. The impact of this requested increase on an average
residential customer using 1,300 kWh/month would be about $6.02 per
month.
In a prior City action, Oncor's rate request was suspended from taking
effect for 90 days, the fullest extent permissible under the law. This time
period has permitted the City, through its participation with the Steering
Committee of Cities Served by Oncor ("Steering Committee"), to
determine that the proposed rate increase is unreasonable and the cities
were unable to reach a reasonable settlement with the Oncor. Consistent
with the recommendations of the experts engaged by the Steering
Committee, Oncor's request for a rate increase should be denied.
Accordingly, the purpose of the resolution is to deny the rate change
application proposed by Oncor. Once the resolution is adopted, Oncor will
have 30 days to appeal the decision to the Public Utility Commission of
Texas where the appeal will be consolidated with Oncor's filing (i.e. PUC
Docket No. 53601) currently pending at the Commission.
Staff recommends approval.
RESOLUTION NO. 2022-016
A RESOLUTION OF THE CITY OF GRAPEVINE, TEXAS
FINDING THAT ONCOR ELECTRIC DELIVERY COMPANY
LLC'S ("ONCOR" OR "COMPANY") APPLICATION TO
CHANGE 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 ("Steering Committee"), 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; and
WHEREAS, on or about May 13, 2022, Oncor filed with the City an application to
increase system -wide transmission and distribution rates by $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; and
WHEREAS, the Steering Committee is coordinating its review of Oncor's
application and working with the designated attorneys and consultants to resolve issues
in the Company's filing; and
WHEREAS, through review of the application, the Steering Committee's
consultants determined that Oncor's proposed rates are excessive; and
WHEREAS, the Steering Committee's members and attorneys recommend that
members deny the Application; and
WHEREAS, the City Council hereby declares that the approval of this resolution is
in the vest interests 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.
RESOLUTION NO. 2022-016
Section 2. That the rates proposed by Oncor to be recovered through its electric
rates charged to customers located within the City limits, are hereby found to be
unreasonable and shall be denied.
Section 3. That the Company shall continue to charge its existing rates to
customers within the City.
Section 4. That the City's reasonable rate case expenses shall be reimbursed
in full by Oncor within 30 days of the adoption of this Resolution.
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. That a copy of this Resolution shall be sent to Oncor, Care of Howard
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., 816 Congress Ave., Suite 1900, Austin, TX 78701.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 18th day of October, 2022.
APPROVED:
William D. Tate
Mayor
ATTEST:
Tara Brooks
City Secretary
APPROVED AS TO FORM:
Matthew C.G. Boyle
City Attorney
RESOLUTION NO. 2022-016 2