From
Mark Dempsey - Deputy City Attorney
Title
Resolution denying Oncor Electric Delivery Company's application to increase its Distribution Cost Recovery Factor to increase electric distribution rates within the City
Presenter
Mark Dempsey - Deputy City Attorney
Recommended Action
Approve
Analysis
On April 8, 2019, Oncor Electric Delivery Company LLC (“Oncor” or “Company”) filed an Application for Approval to Amend its Distribution Cost Recover Factor (“DCRF”) to Increase Distribution Rates with each of the cities in their service area. In the filing, the Company asserts that it is seeking an increase in distribution revenues of $29,433,804.
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.
Purpose of the Resolution:
The purpose of the Resolution is to deny the DCRF application proposed by Oncor.
Explanation of “Be It Resolved” Paragraphs:
1. This section authorizes the City to participate with OCSC as a party in the Company’s DCRF filing, PUC Docket No. 49427.
2. This section authorizes the hiring of Lloyd Gosselink Rochelle and Townsend, PC and consultants to review the filing, negotiate with the Company, and make recommendations to the City regarding reasonable rates. Additionally, it authorizes OCSC to direct any necessary administrative proceedings or court litigation associated with an appeal of this application filed with the PUC.
3. This paragraph finds that the Company’s application is unreasonable and should be denied.
4. This section states that the Company’s current rates shall not be changed.
5. The Company will reimburse Cities for their reasonable rate case expenses. Legal counsel and consultants approved by OCSC will submit monthly invoices that will be forwarded to Oncor for reimbursement.
6. This section recites that the Resolution was passed at a meeting that was open to the public and that the consideration of the Resolution was properly noticed.
7. This section provides that Oncor and counsel for OCSC will be notified of the City’s action by sending a copy of the approved and signed Resolution to counsel.
Financial Consideration
A denial will result in no change in the current rates.
Body
A RESOLUTION OF THE CITY OF THE CITY OF GRAND PRAIRIE, TEXAS, FINDING THAT ONCOR ELECTRIC DELIVERY COMPANY LLC’S application FOR APPROVAL to amend its distribution cost recovery factor PURSUANT TO 16 TEX. ADMIN. CODE § 25.243 to increase distribution 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 Grand Prairie, 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” or “Cities”), 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 April 8, 2019 Oncor filed with the City an Application for Approval to Amend its Distribution Cost Recovery Factor (“DCRF”), PUC Docket No. 49427, seeking to increase electric distribution rates by approximately $29,433,804; and
WHEREAS, all electric utility customers residing in the City will be impacted by this ratemaking proceeding if it is granted; and
WHEREAS, Cities are coordinating its review of Oncor’s DCRF filing with designated attorneys and consultants to resolve issues in the Company’s application; and
WHEREAS, Cities’ members and attorneys recommend that members deny the DCRF.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS:
Section 1
That the City is authorized to participate with OCSC in PUC Docket No. 49427.
Section 2
That subject to the right to terminate employment at any time, the City of Grand Prairie hereby authorizes the hiring of the law firm of Lloyd Gosselink Rochelle & Townsend, P.C. 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 3
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 4
That the Company shall continue to charge its existing rates to customers within the City.
Section 5
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 6
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 7
That a copy of this Resolution shall be sent to Matthew C. Henry, 1616 Woodall Rodgers Freeway, Dallas, Texas 75202 and to Thomas Brocato, Legal Counsel to OCSC, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725.
PASSED AND APPROVED this 7th day of May, 2019.