Title
Consider a resolution suspending the effective date for 90 days in connection with the rate increase filing on Oncor Electric Delivery Company LLC.
Body
The attached resolution supports the City’s intervention in the rate increase request filed by Oncor with the Public Utility Commission on March 17, 2017. Oncor is seeking an increase of 11-12% for Residential and Small Commercial retail customers. Overall, the proposed increase is about 7% and results in new revenues of $317 million.
As the franchising city and a member of the Alliance of Oncor Cities (AOC), the City of Round Rock has standing to protest and examine this rate action. If the City takes no action before April 21, 2017, the new rates will automatically go into effect.
The AOC is a 25-member coalition that includes Pflugerville, Denton, Hillsboro and various other member cities served by Oncor. The City’s involvement is similar to that with Atmos where the City is part of a coalition to examine and monitor rate filings on behalf of its citizens.
The AOC cities fully participated in Oncor’s last rate filing in January 2011. In that application Oncor sought an increase of about $353 million, which equated to an increase of about 12.6%. That case was settled in August 2011 with Oncor receiving of about $136.7 million, which equates to an increase of about 4.9%.
Funding: The costs of the AOC’s legal and rate analysis are paid by Oncor and included in their cost of service.