13 - DENIAL OF PROPOSED ONCOR ELECTRIC RATE INCREASES

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Item No. 13 memorandum TO: City Council John Godwin, City Manager FROM: Gene Anderson, Finance Director SUBJECT: DENIAL OF PROPOSED ONCOR ELECTRIC RATE INCREASE DATE: June 12, 2017 BACKGROUND: Oncor Electric Delivery Company filed an application on or about March 17, 2017 to increase system -wide rates by $317 million or approximately 7.5 %. Oncor's increased rates would allow an 11.8% increase in residential rates and a 0.5% increase in street lighting rates. A residential customer using 1000 kWh per month would see a bill increase of about $6.68 per month. In March 2017, the City passed a resolution suspending the effective date of the Company's rate increase for 90 days past the original April 17, 2017 effective date to allow the City, working in conjunction with the Steering Committee of Cities Served by Oncor, to evaluate the filing. The consultants hired to review Oncor's filing identified numerous unreasonable expenses and propose significant reductions to Oncor's request. The Steering Committee's attorneys recommend adopting a resolution denying the rate change. STATUS OF ISSUE: Once the resolution is adopted, Oncor will have 30 days to appeal the decision to the Public Utility Commission where the appeal will be consolidated with Oncor's rate filing currently pending at the Commission. If the City fails to take action regarding the filing by August 19, 2017, Oncor's rate request would be deemed administratively approved. RECOMMENDATION: A motion to approve the resolution denying the proposed electrical rate increase.