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2020-019 - Oncor Electric Delivery Company's Applicatio for Approval to Increase Distribution Rates deniedRESOLUTION NO. 2020-019 A RESOLUTION OF THE CITY OF PARIS, TEXAS FINDING THAT ONCOR ELECTRIC DELIVERY COMPANY LLC'S APPLICATION FOR APPROVAL TO AMEND ITS DISTRIBUTION COST RECOVERY FACTOR TO INCREASE DISTRIBUTION RATES WITHIN THE CITY SHOULD BE DENIED; AUTHORIZING PARTICIPATION WITH ONCOR CITIES STEERING COMMITTEE; AUTHORIZING THE HIRING OF LEGAL COUNSEL AND CONSULTING SERVICES; 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 Oncor Cities Steering Committee ("OCSC") is a coalition 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 in matters before the Public Utility Commission ("Commission") and the courts; and WHEREAS, on or about April 3, 2020, Oncor filed with the Commission an Application to Amend its Distribution Cost Recovery Factor ("DCRF"), Commission Docket No. 50734, seeking to increase distribution rates by $75.9 million annually (an approximately $0.88 increase to the average residential customer's bill); and WHEREAS, the City of Paris, Texas will cooperate with OCSC in coordinating their review of Oncor's DCRF filing with designated attorneys and consultants, prepare a common response, negotiate with the Company, and direct any necessary litigation, to resolve issues in the Company's filing; and WHEREAS, all electric utility customers residing in the City will be impacted by this ratemaking proceeding if it is granted; and WHEREAS, working with the OCSC to review the rates charged by Oncor allows members to accomplish more collectively than each city could do acting alone; and WHEREAS, OCSC's members and attorneys recommend that members deny Oncor's DCRF. 1669/52/8041053 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 Commission Docket No. 50734. SECTION 2. That, subject to the right to terminate employment at anytime, the City of Paris, Texas hereby authorizes the hiring of the law firm of Lloyd Gosselink Rochelle & Townsend, 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 Oncor's DCRF application. 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. SECTIONS. That the City's reasonable rate case expenses shall be reimbursed in full by Oncor within 30 days of the adoption of this Resolution. 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 Tab Urbantke, Attorney for Oncor, at Hunton Andrews Kurth LLP, 1445 Ross Avenue, Suite 3700, Dallas, Texas 75202, and to Thomas Brocato, General Counsel to OCSC, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, TX 78767-1725, or tbrocato@lglawfirm.com. PASSED AND APPROVED this 11th day of May, 2020. � d Stev�I f. Clifformm,ITIT D., Mayor 1669/52/8041053 2 � Cry ATTEST: ice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney 1669/52/8041053 MODEL STAFF REPORT REGARDING ONCOR'S APPLICATION TO AMEND ITS DISTRIBUTION COST RECOVERY FACTOR The City is an electric utility customer of Oncor Electric Delivery Company LLC ("Oncor" or "Company"). The Oncor Cities Steering Committee ("OCSC") is a coalition 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 in matters before the Public Utility Commission ( "PUC" or "Commission") and the courts. On April 3, 2020, Oncor filed an Application to Amend its Distribution Cost Recovery Factor ("DCRF") with each of the cities retaining original jurisdiction and with the Commission in Docket No. 50734. In the filing, the Company sought to increase distribution rates by $75.9 million annually (an approximately $0.88 increase to the average residential customer's bill). The resolution authorizes the City to join with 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 lose of the Resolution: The purpose of the Resolution is to deny the DCRF amendment proposed by Oncor. Ex planation of "Be It Ordained" Sections: 1. This section authorizes the city to participate with OCSC as a party in the Company's DCRF filing in PUC Docket No. 50734. 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. It also authorizes OCSC to direct any necessary administrative proceedings or court litigation associated with an appeal of this application filed with the Commission. 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 OCSC for its reasonable rate case expenses. Legal counsel and consultants approved by OCSC will submit monthly invoices that will be forwarded to Oncor for reimbursement. 6. 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. 1669/52/8041054 7. This section provides 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. 1669/52/8041054 2 46957 - EXHIBIT 2 PAGE 1 OF 2 ONCOR CITIES THAT HAVE CEDED ORIGINAL JURISDICTION Abbott Crowley Jewett Alma Cumby Jolly Alvarado Cushing Josephine Alvord Dawson Joshua Angus Dean Justin Anna Dorchester Kaufman Annetta North Dublin Keene Annetta South Ector Kemp Annona Edgecliff Village Kerens Appleby Edgewood Knollwood Argyle Edom Krum Athens Elgin Ladonia Aurora Elkhart Lake Bridgeport Bangs Emhouse Lake Dallas Barry Enchanted Oaks Lakeside City Bartlett Eureka Latexo Bellevue Eustace Lavon Blanket Everman Leona Blooming Grove Forney Leroy Boyd Frost Lindsay Brownsboro Garrett Lipan Buckholts Gholson Lorena Buffalo Godley Lovelady Burke Golinda Lowry Crossing Bynum Goodlow Lucas Caddo Mills Gorman Mabank Cameron Grandfalls Malakoff Campbell Grandview Malone Caney City Granger Marquez Canton Grapeland McGregor Carbon Gun Barrel City Melissa Centerville Gunter Mertens Chico Hebron Milano Chireno Hewitt Mildred Clarksville Hickory Creek Milford Cockrell Hill Hideaway Millsap Collinsville Holland Mobile City Comanche Honey Grove Moody Como Hubbard Morgan's Point Resort Cool Hudson Mount Calm Corinth Huntington Murchison Corsicana Hutto Mustang Crandall Italy Nacogdoches Crockett Itasca Navarro 7365699.1 46957 - EXHIBIT 2 PAGE 2 OF 2 ONCOR CITIES THAT HAVE CEDED ORIGINAL JURISDICTION Nevada Streetman New Chapel Hill Taylor New Fairview Terrell Newark Thorndale Neylandville Thorntonville Northlake Thrall Oak Grove Tira Oak Leaf Tool Oak Valley Trinidad Oakwood Valley View Oglesby Van Alstyne Ovilla Venus Payne Springs Weir Pecan Gap Wells Pecan Hill West Penelope Westbrook Pflugerville Wickett Pleasant Valley Wills Point Ponder Windom Post Oak Bend Wolfe City Powell Yantis Poynor Zavalla Princeton Pyote Quinlan Ranger Reno - Lamar County Reno - Parker County Retreat Rhome Rice Richland Rockdale Rogers Rosser Roxton Royse City Runaway Bay Sadler Savoy Shady Shores Southmayd Springtown St. Paul 7365699.1