2011-016 ORD APPROVING A NEGOTIATED RESOLUTIONORDINANCE NO. 201I-016
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
("CITY") APPROVING A NEGOTIATED RESOLUTION BETWEEN THE
STEERING COMMITTEE OF CITIES SERVED BY ONCOR ("STEERING
COMMITTEE") AND ONCOR ELECTRIC DELIVERY COMPANY LLC
("ONCOR" OR "COMPANY") REGARDING THE COMPANY'S APPLICATION
TO INCREASE ELECTRIC RATES IN ALL CITIES EXERCISING ORIGINAL
JURISDICTION; DECLARING EXISTING RATES TO BE UNREASONABLE;
REQUIRING THE COMPANY TO REIMBURSE CITIES' REASONABLE
RATEMAKING EXPENSES; ADOPTING TARIFFS THAT REFLECT RATE
ADJUSTMENTS COIVSISTENT WITH THE NEGOTIATED SETTLEMENT
AND FINDING THE RATES TO BE SET BY THE ATTACHED TARIFFS TO BE
JUST AND REASONABLE; APPROVING ONCOR'S PROOF OF REVENUES;
ADOPTING A SAVINGS CLAUSE; DETERMINING THAT THIS ORDINANCE
WAS PASSED I1V ACCORDANCE WITH THE REQUIREMENTS OF THE
TEXAS OPE1V MEETINGS ACT; DECLARING AN EFFECTIVE DATE; AND
REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND THE
STEERIIVG COMMITTEE'S 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 ("Steering Committee"), a coalition of approximately 160 similarly situated cities
served by Oncor that have joined together to facilitate the review of and response to
electric issues affecting rates charged in the Oncor service area; and
WHEREAS, on or about January 7, 2011, Oncor filed with the City its application to
increase electric base rates by approximately $353 million, such increase to be effective in
every municipality within Oncor's service territory; and
WHEREAS, the Steering Committee coordinated their review of Oncor's filing by
designating an Executive Committee made up of Steering Committee representatives,
assisted by Steering Committee attorneys and consultants, to resolve issues identified by
the Steering Committee in the Company's filing; and
WHEREAS, the Company has filed evidence that existing rates are unreasonable and
should be changed; and
WHEREAS, independent analysis by the Steering Committee's rate experts
concluded that Oncor is able to justify an increase over current rates of $136.7 million; and
WHEREAS, the Steering Committee has entered a Settlement Agreement with Oncor
("Attachment C") with Oncor to increase base rate revenues by $136.7 million; and
WHEREAS, the Executive Committee of the Steering Committee, and the Steering
Committee's lawyers and consultants recommend that Steering Committee members
approve the attached rate tariffs ("Attachment A" and "Attachment B" to this Ordinance),
which will increase the Company's revenue requirement by $136.7 million; and
WHEREAS, the attached tariffs implementing new rates are consistent with the
negotiated resolution reached by the Steering Committee and are just, reasonable, and in
the public interest; and
WHEREAS, it is the intention of the parties that if the City determines any rates,
revenues, terms and conditions, or benefits resulting from a Final Order or subsequent
negotiated settlement approved in any proceeding addressing the issues raised in the
Company's filing would be more beneficial to the City than the terms of the attached tariff,
then the more favorable rates, revenues, terms and conditions, or benefits shall
additionally accrue to the City; and
WHEREAS, the negotiated resolution of the Company's filing and the resulting rates
are, as a whole, in the public interest.
1VOW, THEREFORE, BE IT ORDAIIVED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS:
Section 1. That the findings set forth in this Ordinance are hereby in all things
approved.
Section 2. That the City Council finds the existing rates for electric service provided
by Oncor are unreasonable and new tariffs, which are attached hereto and incorporated
herein as Attachment A and B, are just and reasonable and are hereby adopted.
Section 3. That Oncor shall reimburse the reasonable ratemaking expenses of the
Steering Committee in processing the Company's rate application.
Section 4. That to the extent any resolution or ordinance previously adopted by the
Council is inconsistent with this Ordinance, it is hereby repealed.
Section 5. That the meeting at which this Ordinance was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code,
Chapter 551.
Section 6. That if any one or more sections or clauses of this Ordinance is adjudged
to be unconstitutional or invalid, such judgment shall not affect, impair or invalidate the
remaining provisions of this Ordinance and the remaining provisions of the Ordinance shall
be interpreted as if the offending section or clause never existed.
Section 7. That if the City determines any rates, revenues, terms and conditions, or
benefits resulting from a Final Order or subsequent negotiated settlement approved in any
proceeding addressing the issues raised in the Company's filing would be more beneficial
to the City than the terms of the attached tariff, then the more favorable rates, revenues,
terms and conditions, or benefits shall additionally accrue to the City.
Section B. That this Ordinance and settlement Agreement ("Attachment C") shall
become effective from and after its passage with rates authorized by attached Tariffs to be
effective in two phases. Phase one tariffs (attached to this Ordinance as "Attachment A"),
increasing Oncor's revenues by $93.7 million, are effective for bills rendered on or after
July 1, 2011. Phase two tariffs (attached to this Ordinance as "Attachment B"), increasing
Oncor's revenues by $43 million, are effective for bills rendered on or after January 1, 2012.
Section 9. That a copy of this Ordinance shall be sent to Oncor, care of Autry
Warren, Oncor Electric Delivery Company, LLC, 1601 Bryan St., 23rd Floor, Dallas, Texas
75201 and to Thomas Brocato, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box
1725, Austin, Texas 78767-1725.
Section 10. That the City Council voted by a supermajority vote of the entire
Council to suspend the rule requiring two readings before adoption of ordinances 7 ayes
and 0 nays.
Section 11. That this ordinance shall become effective from and after its passage
of the first reading and publication as required by law.
PASSED AND ADOPTED on first and final reading this May 23, 2011.
C
e McCarthy, Mayor Pro Tem
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
I-/ za '
W. Kent McIlya , ' Attorney