Item 4J
Resolution 17-033, denying Oncor Electric Delivery Company LLC requested rate change
Item 4J
Good evening Mayor and members of the City Council. I am presenting item 4J Resolution 17-033.
1
Requested Action
Consider Resolution 17-033
Deny Oncor requested rate change
$317 Million
11.8% resident rate increase
$6.68 monthly increase (1000kwh)
The purpose of this item is to seek Council approval of Resolution No. 17-033 to deny Oncor’s requested rate change. The increase equates to a $317 million dollar rise in Oncor’s service
revenue. The impact to residential rates is 11.8% and street lighting will increase a half percent a residential customer using 1000 kwh per month will see an additional $6.68 on their
monthly electric bill.
2
Background Information
Member of Steering Committee of Cities Served by Oncor (“Steering Committee”)
Rate increase
March 17, 2017
Resolution 17-021
April 18, 2017
The City, along with over 158 other cities served by Oncor is a member of the Steering Committee of Cities Served by Oncor (“Steering Committee”).
On March 17, 2017, Oncor filed with
the City an application seeking to increase system-wide transmission and distribution rates by $317 million or approximately 7.5% over present revenues.
On April 18, 2017, City Council
approved Resolution 17-021 to suspend the effective date of the rate increase to allow staff 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.
3
Background Information
Steering Committee Consultants
Review of supporting documentation
Identified numerous unreasonable expenses
Legal Counsel
Deny rate request
Public Utility Commission Of Texas
Appeal
process
The Steering Committee engaged the services of three consultants to review Oncor’s filing. The consultants identified numerous unreasonable expenses and propose significant reductions
to Oncor’s request. Accordingly, the Steering Committee’s attorneys recommend that all members adopt the Resolution denying the rate change. Once the Resolution is adopted, Oncor will
have 30 days to appeal the decision to the Public Utility Commission of Texas where the appeal will be consolidated with Oncor’s filing (i.e. PUC Docket No. 46957) currently pending
at the Commission.
4
Resolution provisions
Deny the requested rate increase
Outlines reimbursement of expenses
Approval of the resolution is the formal required action to deny Oncor’s rate increase. The resolution includes a provision that Oncor will reimburses the cities for their reasonable
rate case expenses within 30 days of the adoption of the resolution. No individual city will incur liability for payment of rate case expenses by adopting a denial resolution
5
City of Southlake Strategy Map
The City of Southlake provides municipal services that support the highest quality of life for our residents, businesses, and visitors. We do this by being an exemplary model of balancing
efficiency, fiscal responsibility, transparency, and sustainability.
C1 Achieve the highest standards of safety & security
C2 Provide travel convenience within City & region
C4 Attract & keep top-tier businesses to drive a dynamic & sustainable economic environment
Serve our Customers
Manage the Business
B1 Achieve best-in-class status in all City disciplines
B2 Collaborate with select partners to implement service solutions
B3 Enhance resident quality of life & business vitality through tourism
B4 Provide high quality services through sustainable business practices
B5 Enhance service delivery through continual process improvement
B6 Optimize use of technology
Provide Financial Stewardship
Promote Learning and Growth
F1 Adhere to financial management principles & budget
F2 Invest to provide & maintain high quality public assets
F3 Achieve fiscal wellness standards
F4 Establish & maintain effective internal controls
L1 Ensure our people understand the strategy & how they contribute to it
L2 Enhance leadership capabilities to deliver results
L3 Attract, develop & retain a skilled workforce
L4 Recognize & reward high performers
L5 Empower informed decision-making at all levels in the organization
C6 Enhance the sense of
community by providing excellent customer service and citizen engagement opportunities
L6 Foster positive employee engagement
Deliver on Our Focus Areas
C5 Promote opportunities for partnerships & volunteer involvement
C3 Provide attractive & unique spaces for enjoyment of personal interests
Our membership with the Steering Committee and the group’s evaluation of the proposed rates aligns this item with the Southlake Strategic Objective B2 Collaborate with select partners
to implement service solutions.
6
Questions?
7
Thank you for your consideration of this recommendation. I am available for questions.