07 - Denial of Oncor Proposed Rate Increase

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Item No. 7 TO: Mayor, Mayor Pro -Tem, and City Council Grayson Path, City Manager FROM: Gene Anderson, Finance Director DATE: October 10, 2022 BACKGROUND: On May 13, 2022, Oneor Electric Delivery Company LLC ("Oncor" or "Company") filed an application with cities retaining original jurisdiction seeking to increase present revenues. The Company asks the City to approve an 11.2% increase in residential rates and a 1.6% increase in street lighting rates. The impact of this requested increase on an average residential customer using 1,300 kWh/month would be about $6.02 per month. STATUS OF ISSUE: In a prior City action, Oncor's rate request was suspended from taking effect for 90 days, the fullest extent permissible under the law. This time period has permitted the City, through its participation with the Steering Committee of Cities Served by Oncor ("Steering Committee"), to determine that the proposed rate increase is unreasonable. Consistent with the recommendations of the experts engaged by the Steering Committee, Oncor's request for a rate increase should be denied. Accordingly, the purpose of the Resolution is to deny the rate change application proposed by Oncor. Once the Resolution is adopted, Oncor will have 30 days to appeal the decision to the Public Utilitq Commission of Texas where the apiAeal will be consolidated with Oncor's filing PUC Docket No. 53601) currently pending at the Commission. BUDGET: This action will not impact the City budget. RECOMMENDATION: Motion to approve the resolution denying Oncor's proposed rate increase.