08 - Denial of Oncor Electric's Application to increase distribution ratesItem No. 8
TO: City Council
John Godwin, City Manager
FROM: Gene Anderson, Finance Director
SUBJECT: ONCOR REVENUE INCREASE
DATE: April 16, 2019
BACKGROUND: On April 8, 2019, Oncor Electric Delivery Company LLC filed an
Application for Approval to Amend its Distribution Cost Recovery Factor in Public Utility
Commission of Texas Docket No. 49427. In the filing, Oncor is seeking an increase in
distribution revenues of $29,433,804 system wide.
STATUS OF ISSUE: The Oncor Cities Steering Committee, of which Paris is a member, has
engaged the services of a consultant to review the Oncor filing and identify adjustments that
should be made to reduce Oncor's request for increased revenues. In order for the consultant to
have time for the review, the City of Paris needs to deny Oncor's request for increased revenues.
The staff will bring this matter back to the Council after the review has been completed.
BUDGET: There will be no expense to the City because of this review process.
RECOMMENDATION: Motion to approve a resolution denying Oncor's requested revenue
increase.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PARIS, TEXAS FINDING THAT ONCOR ELECTRIC
DELIVERY COMPANY LLC'S APPLICATION FOR
APPROVAL TO AMEND ITS DISTRIBUTION COST
RECOVERY FACTOR PURSUANT TO 16 TEX. ADMIN.
CODE § 25.243 TO INCREASE DISTRIBUTION RATES
WITHIN THE CITY SHOULD BE DENIED; FINDING
THAT THE CITY'S REASONABLE RATE CASE
EXPENSES SHALL BE REIMBURSED BY THE
COMPANY; 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.
WHEREAS, the City, of Paris, Texas ("City") is an electric utility customer of Oncor
Electric Delivery Company LLC ("Oncor" or "Company"), and a regulatory authority with an
interest in the rates and charges of Oncor; and
WHEREAS, the City is a member of the Steering Committee of Cities Served by Oncor
("OCSC" or "Cities"), a membership of similarly situated cities served by Oncor that have joined
together to efficiently and cost effectively review and respond to electric issues affecting rates
charged in Oncor's service area; and
WHEREAS, on or about April 8, 2019, Oncor filed with the City an Application for
Approval to Amend its Distribution Cost Recovery Factor ("DCRF"), PUC Docket No. 49427,
seeking to increase electric distribution rates by approximately $29,433,804; and
WHEREAS, all electric utility customers residing in the City will be impacted by this
ratemaking proceeding if it is granted; and
WHEREAS, OCSC is coordinating its review of Oncor's DCRF filing with designated
attorneys and consultants to resolve issues in the Company's application; and
WHEREAS, OCSC's members and attorneys recommend that members deny the DCRF.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF PARIS, TEXAS:
Section 1. That the City is authorized to participate with OCSC in PUC Docket No.
49427
Section 2. That subject to the right to terminate employment at any time, the City of
Paris, TX hereby authorizes the hiring of the law firm of Lloyd Gosselink Rochelle & Townsend,
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P.C. and consultants to negotiate with the Company, make recommendations to the City
regarding reasonable rates, and to direct any necessary administrative proceedings or court
litigation associated with an appeal of this application filed with the PUC.
Section 3. That the rates proposed by Oncor to be recovered through its DCRF
charged to customers located within the City limits, are hereby found to be unreasonable and
shall be denied.
Section 4. That the Company shall continue to charge its existing rates to customers
within the City.
Section 5. That the City's reasonable rate case expenses shall be reimbursed in full
by Oncor within 30 days of presentation of an invoice to Oncor.
Section 6. 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 7. That a copy of this Resolution shall be sent to Matthew C. Henry, 1616
Woodall Rodgers Freeway, Dallas, Texas 75202 and to Thomas Brocato, Legal Counsel to
OCSC, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-
1725.
PASSED AND APPROVED this 13th day of May, 2019.
Steven J. Clifford, M.D., Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
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