18 - SUSPENSION OF PROPOSED ONCOR ELECTRIC RATE INCREASE

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Item No. 18 memorandum TO: City Council John Godwin, City Manager FROM: Gene Anderson, Finance Director SUBJECT: SUSPENSION OF PROPOSED ONCOR ELECTRIC RATE INCREASE DATE: March 20, 2017 BACKGROUND: Oncor Electric Delivery Company filed an application on or about March 17, 2017 to increase system -wide rates by $317 million or approximately 7.5 %. Oncor's increased rates would allow an 11.8% increase in residential rates and a 0.5% increase in street lighting rates. A typical residential customer using 1300 kWh per month would see a bill increase of about $6.80 per month. The City's resolution suspends the effective date of the Company's rate increase for 90 days past the original April 17, 2017 effective date to allow the City, working in conjunction with the Steering Committee of Cities Served by Oncor, to evaluate the filing. STATUS OF ISSUE: If the City fails to take action regarding the filing before the effective date, Oncor's rate request would be deemed administratively approved and the increased rates will immediately go into effect. RECOMMENDATION: A motion to approve the resolution suspending the proposed electrical rate increase for 90 days past the April 17, 2017 effective date.