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Consider a resolution denying an application to increase rates submitted by Oncor Electric Delivery Company LLC 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 submitted an application for approval to increase rates which would in turn increase its annual revenues by $833.6 million. Oncor proposed to implement this increase on or about July 31, 2025. For a Residential customer using 1,000 kWh per month, their bill would increase by about $7.00 per month.
The City previously acted to suspend the effective date of Oncor’s requested rate increase by 90 days. Concurrently with the City’s prior action to suspend the rate increase, the City also:
(1) Authorized intervention in proceedings related to Oncor’s proposed rate increase as a member of the coalition of cities known as the Alliance of Oncor Cities (AOC);
(2) Directed Oncor to reimburse AOC’s rate case expenses; and,
(3) Retained the law firm of Herrera Law and Associates, PLLC with respect to rate proceedings involving Oncor before the Public Utility Commission of Texas and courts of law and to retain consultants to review Oncor’s rate application subject to AOC’s approval.
The City must now take its final action on Oncor’s application to increase rates, and must do so no later than October 29, 2025. If the City does not take action by October 29, 2025, Oncor’s proposed rates will be deemed approved by operation of law.
A denial of Oncor’s proposed increase maintains the status quo until the Public Utility Commission of Texas issues its final order regarding Oncor’s rates.