12 - Denial of Oncor's Proposed Rate Increase

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Item No. 12 TO: Mayor, Mayor Pro -Tem, and City Council Grayson Path, City Manager FROM: Gene Anderson, Finance Director SUBJECT: DENIAL OF ONCOR'S PROPOSED RATE INCREASE DATE: August 14,202-31 BACKGROUND: On June 30, 2023 Oncor Electric Delivery Company LLC ("Oncor" or "Company") filed an application with cities retaining original jurisdiction seeking to amend its Distribution Cost Recovery Factor and update Mobile Generation Riders. Oncor is seeking an increase in distribution revenues of $152.78 million and $1.07 million from the updated Riders. STATUS OF ISSUE: The City has 60 days from the filing date to act on this application. The City Staff is bringing a resolution before you that would deny the requested increases. The resolution also authorizes the Steering Committee of Cities Served by Oncor (OCSC) to review Oncor's filing and determine what increase, if any, is justified. Options available to the City Council are (1) to not approve the resolution thus allowing the rate increases to go into effect or (2) approve the resolution denying the rate increase which will allow OCSC to study the request and probably negotiate a smaller increase. BUDGET: This action will not impact the City budget. RECOMMENDATION: Motion to approve the resolution denying Oncor's proposed rate increase.