15-Oncor Electric DeliveryCITY COUNCIL AGENDA ITEM BRIEFING SHEET
Submittal Date: Originating Department: Presented By: Agenda Item No.:
1-17-2011
Council Date: Finance Gene Anderson 15.
1-24-2011
RECOMMENDED MOTION:
Motion to approve a resolution suspending Oncor Electric Delivery Company's requested rate increase for ninety
days.
POLICY ISSUE(S):
Fiscal management.
Oncar Electric Delivery Company filed an application on or about January LUl 1 Wliri Cliles rcLaiiiiiIg
original jurisdiction seeking to increase system-wide transmission and distribution rates by $353 million.
The Company asks the City to approve a 14.6% increase in residential rates, a 15.5% increase in
commercial rates, and a 25.9% increase in street lighting rates. According to Oncor, annual rates would
increase by approximately $60 for an average residential customer.
The resolution suspends the February 14, 2011 effective date of the Oncor's rate increase for the
maximum period permitted by law to allow the City, working in conjunction with the Steering
Committee of Cities Served by Oncor, to evaluate the filing, determine whether the filing complies with
law, and if lawful, to determine what further strategy, including settlement, to pursue.
The law provides that a rate request made by an electric utility cannot become effective until at least 35
days following the filing of the application to change rates. The law permits the City to suspend the rate
change for 90 days after the date the rate change would otherwise be effective. If the City fails to take
some action regarding the filing before the effective date, Oncor's rate request is deemed
administratively approved.
BOARD/ COMMISSION RECOMMENDATION:
None
EXHIBITS:
R esolution
ACTION:
BUDGET INFO:
Fj Financial Report ❑ Minute Order
Expense
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❑ Department Report Z Resolution
Budgeted Amt.
$NA
~ Presentation ❑ Ordinance
yTD Actual
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~ Public Hearing ❑ Other
Acct. Name
NA
Acct. Number
NA
FISCAL NOTES:
None
REVIEWED AND APPROVED BY:
Z Administration Z City Clerk ❑ Community Development ❑ EMS/IT Z Finance ❑ Fire
❑ Municipal Court Z Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities
City of Paris
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DRAFT
S:\RESWORK\CURREN"I10ncor Rate Increase Suspension RES 2011.DOC
RESOLUTION NO.
RESOLUTION OF THE CITY OF PARIS SUSPENDING THE
FEBRUARY 14, 2011, 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 TffiS
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 January 7, 2011, Oncor Electric Delivery Company ("Oncor"),
pursuant to PURA 33.001 and 36.001 filed with the City of Paris a Statement of Intent to
increase electric transmission and distribution rates in all municipalities exercising original
jurisdiction within its service area effective February 14, 2011; and
WHEREAS, the City of Paris is a member of the Steering Committee of Cities Served
by Oncor ("Steering Committee") and will cooperate with the 146 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 setting 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
activities 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 February 14, 2011 effective date of the rate request submitted by
Oncor on or about January 7, 2011, be suspended for the maximum period allowed by law to
permit adequate time to review the proposed changes and to establish reasonable rates.
Section 2. That As indicated in the City's resolution approving membership in the
Steering Committee, the Executive Committee of the 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
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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 on a monthly basis.
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. That a copy of this Resolution shall be sent to Oncor, care of Autry
Warren, Oncor Electric Delivery Company, LLC, 1601 Bryan St., 23'd Floor, Dallas, Texas
75201 and to Geoffrey Gay, General Counsel to the Steering Committee, at Lloyd Gosselink
Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725.
Section 6. That this resolution shall be effective immediately upon passage.
DULY PASSED AND APPROVED this 24t1i day of January, 2011.
Will Biard, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
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