17 Motion to approve resolution suspending the effective date of Oncor's requested rate change

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monitoring reports required by the PUC revealed that the Company was earning profits in excess of its approved rate of return for monopoly services. Finally, the Company had recently gone through massive reorganization and the hypothetical cost structures the PUC had used to justify current rates were no longer valid. The Steering Committee negotiated a comprehensive settlement in 2005 that called for the Company to work with cities on certa.in items of concern to cities including municipal and street lighting rates, maintenance, undergrounding and relocation of TXU facilities, and to make cash payments to the Steering Committee for distribution to all members. In 2006, the Steering Committee voted to approve an agreement that extends the benefits of the earlier settlement and increases value to Cities. The settlement terms called for the Company to file a rate case in 2008. The total benefits of the Steering Committee settlement agreement are worth approximately $85 million for the period 2005 - 2009. Explanation of "Be It Resolved" Paragraphs: Section 1. The city is authorized to suspend the rate change for 90 days after the date that the rate change would otherwise be effective for any legitimate purpose. Time to study and investigate the application is always a legitimate purpose. Please note that the resolution refers to the suspension period as "the maximum period allowed by law" rather than ending by a specific date. This is because the Company controls the effective date and can extend the deadline for final city action to increase the time that the City retains jurisdiction if necessary to reach settlement on the case. If the suspension period is not otherwise extended by the Company, the City must take final action on Oncor's request to raise rates by November 6, 2008. Section 2. This provision authorizes the Steering Committee, consistent with the City's resolution approving membership in the Steering Committee, to act on behalf of the City at the local level in settlement discussions, in preparation of a rate ordinance, on appeal of the rate ordinance to the PUC, and on appeal to the Courts. Negotiating clout and efficiency are enhanced by the City cooperating with the Steering Committee in a common review and common purpose. Additionally, rate case expenses are minimized when the Steering Committee hires one set of attorneys and experts who work under the guidance and control of the Executive Committee of Steering Committee. Section 3. The Company will reimburse the Steering Committee for its reasonable rate case expenses. Legal counsel and consultants approved by the Executive Committee of the Steering Committee will submit monthly invoices that will be forwarded to Oncor for reimbursement. No individual city incurs liability for payment of rate case expenses by adopting a suspension resolution. Section 4. This section merely 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. Section 5. This section provides that both Oncor and Steering Committee counsel will be notified of the City's action by sending a copy of the approved and signed resolution to certain designated individuals. m 0 0 0 21 6.4