HomeMy WebLinkAboutItem 13 - Oncor Rate Increase Suspension MEMO TO: HONORABLE MAYOR & MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: JULY 18, 2017
SUBJECT: ONCOR RATE INCREASE SUSPENSION
RECOMMENDATION:
City Council to consider a resolution suspending a rate increase filing by Oncor for the
maximum period allowed by law.
BACKGROUND:
Oncor Electric Delivery Company filed an application on or about March 17, 2017 with
cities retaining original jurisdiction seeking to increase system-wide transmission and
distribution rates by $317 million or approximately 7.5% over present revenues. The
Company asks the City to approve an 11.8% increase in residential rates and a 0.5%
increase in street lighting rates. If approved, a residential customer using 1000 kWh per
month would see a bill increase of about $6.68 per month.
In March, the Steering Committee engaged the services of three consultants to review
the Company's filing. The consultants identified numerous unreasonable expenses and
propose significant reductions to the Company's request. Accordingly, the Steering
Committee's attorneys recommend that all members adopt the resolution denying the
rate change. 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 currently pending at the Commission.
Settlement negotiations will continue after action on this denial resolution takes place. If
a settlement is reached and approved by Council, that action will supercede this denial.
However, if we don't take action prior to August 19, the higher rates will take effect.
City Council Utility Committee and staff recommend approval.
RESOLUTION NO. 2017-064
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 March 17, 2017, Oncor filed with the City an application
to increase system-wide transmission and distribution rates by $317 million or
approximately 7.5% over present revenues. The Company asks the City to approve an
11.8% increase in residential rates and a 0.5% 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 ORDAINED 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 within 30 days of the adoption of this Resolution.
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
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., P.O. Box 1725, Austin,
Texas 78767-1725.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE,
TEXAS on this the 18th day of July, 2017.
APPROVED:
William D. Tate
Mayor
ATTEST:
Tara Brooks
City Secretary
APPROVED AS TO FORM:
John F. Boyle, Jr.
City Attorney
Resolution No. 2017-064 2