Title
Consider a resolution authorizing the denial of the Oncor Electric Delivery Company rate increase.
Body
On or about March 17, 2017, Oncor Electric Delivery Company LLC filed a Statement of Intent to increase its revenues by approximately $317 million, which equates to a net increase of approximately 7.5% in Oncor’s overall revenue.
The City has previously: 1) suspended Oncor’s proposed rate increase by 90 days; 2) 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); 3) directed Oncor to reimburse Oncor’s rate case expenses; and 4) retained the law firm of Herrera & Boyle, PLLC with respect to rate proceedings involving Oncor before the Public Utility Commission of Texas (PUCT) and courts of law and to retain consultants to review Oncor’s rate application subject to AOC’s approval.
This resolution will deny the original rate increase of $317 million as requested by Oncor. The PUCT has proposed a settlement for Oncor of approximately $108 million. In effect, this resolution will deny Oncor’s increase in rates at the city level, and the PUCT will finalize the settlement approving the lower increase at the state level.