HomeMy WebLinkAboutItem 12 - Oncor ApplicationMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: AUGUST 15, 2023
SUBJECT: RESOLUTION DENYING ONCOR'S DISTRIBUTION COST RECOVERY
FACTOR INCREASE
RECOMMENDATION: City Council to consider a resolution to deny Oncor's application to amend
its Distribution Cost Recovery Factor (DCRF).
FUNDING SOURCE:
BACKGROUND: On June 30, 2023, Oncor Electric Delivery Company, LLC ("Oncor" or
"Company") filed an Application to Amend its Distribution Cost Recovery
Factor ("DCRF") and Update its Mobile Generation Riders to increase
distribution rates within each of the cities in its service area. In the filing,
the Company asserts it is seeking an increase in distribution revenues of
approximately $152.78 million. The Company is also seeking to update its
Rider Mobile Generation and Rider Wholesale Mobile Generation to
recover revenue related to mobile generation unit leasing and operation.
The Rider would recover approximately $1.07 million.
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.
Staff recommends approval.
RESOLUTION NO. 2023-015
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS FINDING THAT ONCOR ELECTRIC
DELIVERY COMPANY LLC'S APPLICATION TO AMEND
ITS DISTRIBUTION COST RECOVERY FACTOR AND
UPDATE GENERATION RIDERS TO INCREASE
DISTRIBUTION RATES WITHIN THE CITY SHOULD BE
DENIED; AUTHORIZING PARTICIPATION WITH THE
STEERING COMMITTEE OF CITIES SERVED BY ONCOR;
AUTHORIZING HIRING OF LEGAL COUNSEL; 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 City is a member of the Steering Committee of Cities Served by
Oncor ("OCSC"), 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 June 29, 2023, Oncor filed with the City an Application to
Amend its Distribution Cost Recovery Factor and Update Mobile Generation Riders,
PUC Docket No. 55190, seeking to increase electric distribution rates by approximately
$152.78 million and update Oncor's Rider Mobile Generation and Rider Wholesale
Mobile Generation to recover $1.07 million related to mobile generation facilities; and
WHEREAS, all electric utility customers residing in the City will be impacted by
this ratemaking proceeding if it is granted; and
WHEREAS, OCSC is coordinating its review of Oncor's DCRF filing with
designated attorneys and consultants to resolve issues in the Company's application;
and
WHEREAS, OCSC 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 RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That all matters stated in the above preamble are true and correct
and are incorporated herein as if copied in their entirety.
Section 2. That the City is authorized to participate with Cities in PUC Docket
No. 55190.
Section 3. That subject to the right to terminate employment at any time, the
City hereby authorizes the hiring of the law firm of Lloyd Gosselink 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 J. Michael
Sherburne, Vice President — Regulatory, Oncor Electric Delivery Company LLC, 1616
Woodall Rodgers Freeway, Dallas, Texas 75202; to Tab R. Urbantke, Hunton Andrews
Kurth LLP, 1445 Ross Avenue, Suite 3700, Dallas, Texas 75202; and to Thomas L.
Brocato, General Counsel to OCSC, at Lloyd Gosselink Rochelle & Townsend, 816
Congress Ave., Suite 1900, Austin, Texas 78701.
Section 9. That this resolution shall take effect from and after the date of its
passage.
03me 71=0 0 Rew.0yalto] Ib
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 15th day of August, 2023.
APPROVED:
William D. Tate
Mayor
ATTEST:
Tara Brooks
City Secretary
APPROVED AS TO FORM:
Matthew C.G. Boyle
City Attorney
:Tzme ROT01Rew.OyAlto] Ib