2008-087-RES FINDING THAT ONCOR ELECTRIC COMPANY'S REQUESTED INCREASES TO ITS ELECTRIC TRANSMISSION AND DISTRIBUTION RATES AND CHARGES WITHIN THE CITY SHOULD BE DENIEDRESOLUTION N0. 2008-087
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS
FINDING THAT ONCOR ELECTRIC COMPANY'S REQUESTED INCREASES
TO ITS ELECTRIC TRANSMISSION AND DISTRIBUTION RATES AND
CHARGES WITHIN THE CITY SHOULD BE DEIVIED; FINDING THAT THE
CITY'S REASONABLE RATE CASE EXPENSES SHALL BE REIMBURSED BY
THE COMPANY; FINDING THAT THE MEETIIVG 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, pursuant to § 33.001 of the Public Utility Regulatory Act ("PURA"), the
City has exclusive original jurisdiction over the electric rates, operations, and services
provided within city limits;
WHEREAS, on or about June 27, 2008, Oncor Electric Delivery Company ("Oncor" or
"Company"), pursuant to PURA 33.001 and 36.001 filed with the City of Paris ("City") a
Statement of Intent to increase electric transmission and delivery rates by $275 million on
a system-wide basis within its service area effective August 8, 2008; and
WHEREAS, pursuant to PURA § 36.108, the City lawfully suspended the August 8,
2008, effective date by resolution to provide time to study the reasonableness of the
Company's application to increase rates; and
WHEREAS, the City is a member of the Oncor Cities Steering Committee (Steering
Committee) and has cooperated with 145 similarly situated city members to conduct a
review of the Company's application, to hire and direct legal counsel and consultants, to
prepare a common response to the filing, to negotiate with the Company and to direct any
necessary litigation appealing final city action; and
WHEREAS, the City, in a reasonably noticed meeting that was open to the public,
considered the Company's application; and
WHEREAS, the consultants who were retained by the Steering Committee to
evaluate the merits of the Company's application have determined that the Company's
requested $275 million increase in revenues for its transmission and distribution system is
not supported by evidence; and
WHEREAS, PURA § 33.023 provides that reasonable costs incurred by cities in
ratemaking activities are to be reimbursed by the regulated utility.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby
in all things approved.
Section 2. That the rates proposed by Oncor Electric Delivery Company, to be
recovered through its electric transmission and distribution rates charged to customers
located within the City limits, are hereby found to be unreasonable and shall be denied.
Section 3. That the Company shall continue to charge its existing rates for
transmission and distribution services to customers within the City.
Section 4. That the City's reasonable rate case expenses shall be reimbursed by
Oncor.
Section 5. 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 6. A copy of this Resolution shall be sent to Oncor, care of Debra
Anderson, Oncor Electric Delivery Company, 1601 Bryan St., Suite 23-055C, Dallas, Texas
75201 and to Geoffrey Gay, General Counsel to the Oncor Cities Steering Committee, at
Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725.
Section 7. That this resolution shall be effective immediately upon passage.
PASSED AND APPROVED, this the 13th day of October, 2008.
ATTEST:
J J
ice Ellis, City Clerk
APPROVED AS T M:
W. Kent McIlyar
,11'se Ja s Freelen, Mayor