Title
Consider a resolution denying an application to increase rates submitted by Oncor Electric Delivery Company LLC’s related to Oncor’s statement of intent to increase rates filed on or about June 26, 2025 and requiring Oncor to reimburse the Alliance of Oncor Cities' rate case expenses.
Body
On or about June 26, 2025, Oncor Electric Delivery Company, LLC filed a Statement of Intent to increase its revenues by approximately $833.6 million, which equates to a net increase of approximately 13.0% in Oncor’s overall revenue. Oncor plans to implement this increase in rates effective July 31, 2025. For a Residential customer using 1,000 kWh per month, their bill would increase by about $7.00 per month.
Oncor’s rate-filing package is very long, containing over five thousand pages of data, in a 12-volume package. To have time to review the rate-filing package, staff recommends suspending Oncor’s proposed effective date for ninety (90) days. Suspension of Oncor’s proposed effective date would permit its special regulatory counsel and experts an opportunity to perform a better review of Oncor’s application and request additional information as necessary to fully evaluate the proposal and determine the most appropriate response. During the suspension period, the City will retain its rights to dismiss Oncor’s Statement of Intent if the City determines that Oncor failed to properly invoke the City’s jurisdiction or if Oncor failed to provide adequate notice. The suspension period also allows time to attempt to resolve matters by agreement with Oncor, or to determine whether to deny Oncor’s request.
The City must take action no later than July 31, 2025. If the City does not act by July 31, 2025, Oncor’s proposed rates will be deemed approved by operation of law, subject to the City’s right to hold a hearing to address Oncor’s rate application.
The law firm of Herrera Law & Associates, PLLC has previously represented the City and its participation in the coalition of cities named the “Alliance of Oncor Cities” (AOC) in rate matters involving Oncor, including Oncor’s most recent general rate case, and the subsequent interim rate increases Oncor has submitted. The accompanying Resolution authorizes retention of Herrera Law & Associates as Special Counsel and continued participation in the AOC coalition.
Oncor filed its Statement of Intent to raise rates with the City and with the Public Utility Commission of Texas on the same date, June 26, 2025. Oncor’s application poses complex regulatory issues that require time to evaluate the merits of Oncor’s proposed increase in rates. It is important to participate in these proceedings because the Commission’s decisions could impact rates within the City. Thus, the accompanying Resolution authorizes intervention in proceedings at the Commission as well as any appeals taken from the Commission’s decision.
Cities, by statute, are entitled to recover their reasonable rate case expenses from the utility. Legal counsel and consultants approved by the City will submit monthly invoices to the City designated by AOC to serve as the “coordinating” city, who will then forward invoices to Oncor for reimbursement; that city historically has been Corsicana. No individual city’s budget is negatively affected. The accompanying Resolution directs Oncor to reimburse AOC’s rate case expenses monthly based on presentation of invoices from the cities.
Staff recommends that the City suspend Oncor’s proposed effective date for 90 days from July 31, 2025, Oncor’s proposed effective date for its requested increase in rates. Absent an extension agreed to by Oncor and the City, the suspension period runs through October 29, 2025. Additionally, staff recommends that City continue participating in OAC< intervene in proceedings at the PUCT and any related proceedings and/or appeals, and to retain the law firm of Herrera Law & Associates, PLLC to represent the City’s interest in matters related to Oncor’s rate case and to advise the City with regard to Oncor’s application, and to retain consultants subject to approve by the AOC executive committee to assist Special Counsel in its review of Oncor’s application to increase rates.