CC MEETING: May 7, 2019
DATE: April 22, 2019
TO: Mayor and City Council
FROM: Meredith A. Ladd, City Attorney
Title
Consider A Resolution 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; And Providing An Effective Date.
Body
BACKGROUND:
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.