CC MEETING: April 19, 2016
DATE: April 11, 2016
TO: Leonard Martin, City Manager
FROM: Laurie Garber, City Secretary/Admin. Services Manager
Title
Consider A Resolution Joining Other Cities Part Of The Oncor Steering Committee To Initiate A Rate Case Against Oncor, And Directing Oncor Electric Delivery Company, LLC To File Certain Information With The City Of Carrollton; Setting A Procedural Schedule For The Gathering And Review Of Necessary Information In Connection Therewith; Setting Dates For The Filing Of The City's Analysis Of The Company's Filing And The Company's Rebuttal To Such Analysis; Ratifying The Hiring Of Legal Counsel And Consultants; Reserving The Right To Require The Reimbursement Of The City Of Carrollton's Rate Case Expenses; Setting A Public Hearing For The Purposes Of Determining If The Existing Rates Of Oncor Electric Delivery Company Are Unreasonable Or In Any Way In Violation Of Any Provision Of Law And The Determination By The City Of City Of Carrollton Of Just And Reasonable Rates To Be Charged By Oncor Electric Delivery Company, LLC.
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BACKGROUND:
Recent Public Utility Commission of Texas ("Commission") proceedings related to approval of conversion of Oncor into a Real Estate Investment Trust ("REIT") resulted in the Commissioners' desire to share $200 million to $250 million in annual federal income tax ("FIT") savings with Oncor ratepayers. Since the proceeding involving a change of ownership and control of Oncor was not a rate case, the Commission had no jurisdiction to order a reduction in rates. The new owners of Oncor indicated an intent to file a rate case in mid-2017 to become effective in 2018. Believing that a two year wait to factor FIT savings into rates was too long to wait, the Steering Committee of Cities Served by Oncor decided to initiate a rate case against Oncor.
WHEREAS CLAUSE EXPLAINED
Cities have original rate making jurisdiction over Oncor's rates and services within their municipal lim...
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