18 - SUSPENSION OF PROPOSED ONCOR ELECTRIC RATE INCREASEItem 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.
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS
SUSPENDING THE APRIL 21, 2017, EFFECTIVE DATE OF ONCOR
ELECTRIC DELIVERY COMPANY'S REQUESTED RATE CHANGE TO
PERMIT THE CITY TIME TO STUDY THE REQUEST AND TO ESTABLISH
REASONABLE RATES; APPROVING COOPERATION WITH THE STEERING
COMMITTEE OF CITIES SERVED BY ONCOR TO HIRE LEGAL AND
CONSULTING SERVICES AND TO NEGOTIATE WITH THE COMPANY AND
DIRECT ANY NECESSARY LITIGATION AND APPEALS; FINDING THAT
THE MEETING AT WHICH THIS RESOLUTION IS PASSED IS OPEN TO
THE PUBLIC AS REQUIRED BY LAW; REQUIRING NOTICE OF THIS
RESOLUTION TO THE COMPANY AND LEGAL COUNSEL FOR THE
STEERING COMMITTEE
WHEREAS, on or about March 17, 2017, Oncor Electric Delivery Company ( Oncor),
pursuant to PURA §§ 33.001 and 36.001 filed with the City of Paris, Texas a Statement of
Intent to increase electric transmission and distribution rates in all municipalities
exercising original jurisdiction within its service area effective April 21, 2017; and
WHEREAS, the City of Paris, Texas is a member of the Steering Committee of Cities
Served by Oncor ( "Steering Committee ") and will cooperate with the 156 similarly situated
city members and other city participants in conducting a review of the Company's
application and to hire and direct legal counsel and consultants and to prepare a common
response and to negotiate with the Company prior to getting reasonable rates and direct
any necessary litigation; and
WHEREAS, PURA § 36.108 grants local regulatory authorities the right to suspend
the effective date of proposed rate changes for ninety (90) days after the date the rate
change would otherwise be effective; and
WHEREAS, PURA § 33.023 provides that costs incurred by Cities in ratemaking
proceedings are to be reimbursed by the regulated utility.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS:
Section 1. That the April 21, 2017 effective date of the rate request submitted by
Oncor on or about March 17, 2017, be suspended for the maximum period allowed by law
to permit adequate time to review the proposed changes and to establish reasonable rates.
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Section 2. As indicated in the City's resolution approving membership in the
Steering Committee, the Executive Committee of Steering Committee is authorized to hire
and direct legal counsel and consultants, negotiate with the Company, make
recommendations regarding reasonable rates, and to intervene and direct any necessary
administrative proceedings or court litigation associated with an appeal of a rate ordinance
and the rate case filed with the City or Public Utility Commission.
Section 3. That the City's reasonable rate case expenses shall be reimbursed by
Oncor.
Section 4. That it is hereby officially found and determined that the meeting at
which this Resolution is passed is open to the public as required by law and the public
notice of the time, place, and purpose of said meeting was given as required.
Section 5. A copy of this Resolution shall be sent to Oncor, Care of Howard
Fisher, Oncor Electric Delivery Company, LLC, 1616 Woodall Rodgers Freeway, Dallas,
Texas 75202 and to Thomas Brocato, Counsel to the Steering Committee, at Lloyd Gosselink
Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767 -1725.
PASSED AND APPROVED this the 27th day of March, 2017.
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
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A.J. Hashmi, M.D., Mayor
City of Paris, Texas