Item 4EM E M O R A N D U M
April 11, 2017
To: Shana Yelverton, City Manager
From: Sharen Jackson, Chief Financial Officer
Subject: Resolution 17-021, Suspending the April 21, 2017, effective date of
Oncor Electric Delivery Company’s requested rate change to permit
the City time to study the request and to establish reasonable rates.
Action
Requested: Approval of Resolution No. 17-021
Background
Information: Southlake is a member of a 156-city coalition known as the
Steering Committee of Cities Served by Oncor ("Steering
Committee"). On March 17, 2017, Oncor filed an application
seeking to increase system-wide transmission and
distribution rates by $317 million or approximately 7.5% over
current revenues.
The rate request included the following:
• 11.8% increase in residential rates;
• 0.5% increase in street lighting rates.
If approved, a residential customer using 1000 kWh per
month would see a bill increase of about $6.68 per month.
The resolution suspends the April 21, 2017 effective date of
the Company's rate increase for the maximum period
permitted by law (90 days) to allow the City, working in
conjunction with the Steering Committee to evaluate the
filing, determine whether the filing complies with law, and if
lawful, to determine what further strategy, including
settlement, to pursue.
If the City fails to take action regarding the filing before
the effective date, Oncor's rate request is deemed
administratively approved.
Financial
Considerations: None
Page 2 of 2
Strategic Link: B2: Collaborate with select partners to implement service
solutions
Citizen Input/
Board Review: None required
Legal Review: Lloyd Gosselink Rochelle & Townsend, P.C. prepared the
resolution.
Alternatives: Deny the resolution which would result in the approval of
Oncor’s requested rate increase.
Supporting
Documents: Resolution No. 17-021
Staff
Recommendation: Approval of Resolution No. 17-021
1669/35/7314189.1 1
RESOLUTION NO. 17-021
RESOLUTION OF THE CITY OF SOUTHLAKE, TEXAS
SUSPENDING THE APRIL 21, 2017, EFFECTIVE DATE OF
ONCOR ELECTRIC DELIVERY COMPANY’S
REQUESTED RATE CHANGE TO PERMIT THE CITY
TIME TO STUDY THE REQUEST AND TO ESTABLISH
REASONABLE RATES; APPROVING COOPERATION
WITH THE STEERING COMMITTEE OF CITIES SERVED
BY ONCOR TO HIRE LEGAL AND CONSULTING
SERVICES AND TO NEGOTIATE WITH THE COMPANY
AND DIRECT ANY NECESSARY LITIGATION AND
APPEALS; FINDING THAT THE MEETING AT WHICH
THIS RESOLUTION IS PASSED IS OPEN TO THE PUBLIC
AS REQUIRED BY LAW; REQUIRING NOTICE OF THIS
RESOLUTION TO THE COMPANY AND LEGAL
COUNSEL FOR THE STEERING COMMITTEE
WHEREAS, on or about March 17, 2017, Oncor Electric Delivery Company (Oncor),
pursuant to PURA §§ 33.001 and 36.001 filed with the City of Southlake a Statement of Intent to
increase electric transmission and distribution rates in all municipalities exercising original
jurisdiction within its service area effective April 21, 2017; and
WHEREAS, the City of Southlake is a member of the Steering Committee of Cities
Served by Oncor (“Steering Committee”) and will cooperate with the 156 similarly situated city
members and other city participants in conducting a review of the Company’s application and to
hire and direct legal counsel and consultants and to prepare a common response and to negotiate
with the Company prior to getting reasonable rates and direct any necessary litigation; and
WHEREAS, PURA § 36.108 grants local regulatory authorities the right to suspend the
effective date of proposed rate changes for ninety (90) days after the date the rate change would
otherwise be effective; and
WHEREAS, PURA § 33.023 provides that costs incurred by Cities in ratemaking
proceedings are to be reimbursed by the regulated utility.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS:
1. That the April 21, 2017 effective date of the rate request submitted by Oncor on
or about March 17, 2017, be suspended for the maximum period allowed by law to permit
adequate time to review the proposed changes and to establish reasonable rates.
1669/35/7314189.1 2
2. As indicated in the City’s resolution approving membership in the Steering
Committee, the Executive Committee of Steering Committee is authorized to hire and direct
legal counsel and consultants, negotiate with the Company, make recommendations regarding
reasonable rates, and to intervene and direct any necessary administrative proceedings or court
litigation associated with an appeal of a rate ordinance and the rate case filed with the City or
Public Utility Commission.
3. That the City’s reasonable rate case expenses shall be reimbursed by Oncor.
4. That it is hereby officially found and determined that the meeting at which this
Resolution is passed is open to the public as required by law and the public notice of the time,
place, and purpose of said meeting was given as required.
5. A copy of this Resolution shall be sent to Oncor, Care of Howard Fisher, Oncor
Electric Delivery Company, LLC, 1616 Woodall Rodgers Freeway, Dallas, Texas 75202 and to
Thomas Brocato, Counsel to the Steering Committee, at Lloyd Gosselink Rochelle & Townsend,
P.C., P.O. Box 1725, Austin, Texas 78767-1725.
PASSED AND APPROVED this the __________ day of _________________________,
2017.
____________________________________
Mayor, City of ________________
ATTEST:
_____________________________
_____________________________