12 - Denial of Oncor's Proposed Rate Increase

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MODEL STAFF REPORT REGARDING ONCOR ELECTRIC DELIVERY COMPANY, LLC'S DISTRIBUTION COST RECOVERY FACTOR AND MOBILE GENERATION RIDERS FILING On June 30, 2023, Oncor Electric Delivery Company, LLC ("Oncor" or "Company") filed an Application to Amend its Distribution Cost Recovery Factor ("DCRF") and Update its Mobile Generation Riders to increase distribution rates within each of the cities in its service area. In the filing, the Company asserts it is seeking an increase in distribution revenues of approximately $152.78 million. The Company is also seeking to update its Rider Mobile Generation and Rider Wholesale Mobile Generation to recover revenue related to mobile generation unit leasing and operation. The Rider would recover approximately 1$1.07 [Rai]million. 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. Pur, ose 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. 55190. 2. This section authorizes the hiring of Lloyd Gosselink and consultants to review the filing, negotiate with the Company, and make recommendations to the City regarding reasonable rates. Additionally, it authorizes Cities 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 Cities 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.