12 - Oncor Rate Increase - Laserfiche WebLink

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Item No. 12 memorandum TO: Mayor & City Council Grayson Path, City Manager FROM: Gene Anderson, Finance Director SUBJECT: ONCOR RATE INCREASE DATE: May 3, 2020 BACKGROUND: On April 3, 2020, Oncor filed an application with the Public Utilities Commission (PUC) to amend its Distribution Cost Recovery Factor (DCRF). The DCRF is a limited issue/limited review rate case. In the filing, Oncor seeks to increase distribution rates by $75.9 million annually (an approximately $0.88 increase to the average residential customer's bill). The resolution being considered authorizes the City of Paris to join with other cities in the Oncor Cities Steering Committee (OCSC) to evaluate the filing, determine whether the filing complies with law, and if lawful, to determine what further strategy, including settlement, to pursue. STATUS OF ISSUE: The City of Paris is already a member of the OCSC and adopting this resolution will not result in any cost to the City. The PUC allows 60 days from the filing of the rate increase for a city to challenge the rate increase, therefore, the City must act by June 2°d. Since the second meeting in May has been cancelled, this is our only opportunity to act on this matter. After the rate request has been reviewed, City staff will bring back OCSC's recommendation for consideration by the City Council. BUDGET: No impact. RECOMMENDATION: The staff recommends adopting the resolution denying the Oncor rate increase and joining OCSC in the reviewing of Oncor's request. If no action by the City is taken, the rate increase goes into effect automatically.