HomeMy WebLinkAboutItem 12 - OncorMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: OCTOBER 21, 2025
SUBJECT: ONCOR RATE INCREASE DENIAL
RECOMMENDATION: City Council to consider a resolution denying a rate increase request by
Oncor.Electric Delivery Company LLC.
FUNDING SOURCE:
BACKGROUND: On June 26, 2025, Oncor Electric Delivery Company LLC ("Oncor" or
"Company") filed an application with cities retaining original jurisdiction
seeking to increase system -wide transmission and distribution rates by
about $834 million, or approximately 13% over present revenues. The
Company asks the City to approve a 12.3% increase in residential rates
and a 51.0% increase in street lighting rates. If approved, the impact of
this requested increase on an average residential customer would be
about $7.90 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. 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 ("PUC") where the appeal will be consolidated with Oncor's filing
(PUC Docket No. 58306) currently pending at the PUC.
The City Council Utilities Committee has been briefed and staff
recommends approval.
RESOLUTION NO. 2025-018
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS FINDING THAT ONCOR ELECTRIC
DELIVERY COMPANY LLC'S 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 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 ("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 June 26, 2025, Oncor filed with the City an application to
increase system -wide transmission and distribution rates by about $834 million or
approximately 13% over present revenues. The Company asks the City to approve an
12.3% increase in residential rates and a 51.0% 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
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF, GRAPEVINE, TEXAS:
Section 1. 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 2. That the Company shall continue to charge its existing rates to
customers within the City.
Section 3. That the City's reasonable rate case expenses shall be reimbursed
in full 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 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, Texas 78701.
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 21st day of October, 2025.
APPROVED:
William D. Tate
Mayor
ATTEST:
Tara Brooks
City Secretary
APPROVED AS TO FORM:
Matthew C.G. Boyle
City Attorney
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