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17-033RESOLUTION NO. 17-033 A RESOLUTION OF THE CITY OF SOUTHLAKE, EXAS FINDING THAT ONCOR ELECTRIC DELIVERY COMPANY LLC'S ("ONCOR" OR "COMPANY") APPLICATION TO CHANGE RATES WITHIN THE CITY SHOULD BE DENIED; FINDING THAT THE (ITY'S REASONABLE RATE CASE EXPENSES SHALL BE REIMBURSED BY THE COMPANY; FINDING THAN 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. WHEREAS, the City of Southlake, Texas ("City") is an electric utility customer of Oncor Electric Delivery Company LLC ("Oncor" or "Company"), and a regulatory authority with an interest in the rates and charges of Oncor; and WHEREAS, the City is a member of the Steering Committee of Cities Served by Oncor ("Steering Committee"), a coalition of similarly situated cities served by ncor that have joined together to efficiently and cost effectively review and respond to electri issues affecting rates charged in Oncor's service area; and WHEREAS, on or about March 17, 2017, Oncor filed with the; City an application to increase system -wide transmission and distribution rates by $317 million or approximately 7.5% over present revenues. The Company asks the City to approve an 11.8% increase in residential rates and a 0.5% increase in street lighting rates; and WHEREAS, the Steering Committee is coordinating its review of Oncor's application and working with the designated attorneys and consultants to resolve issues in the Company's filing; and WHEREAS, through review of the application, the SteeringCommittee's consultants determined that Oncor's proposed rates are excessive; and WHEREAS, the Steering Committee's members and attorneys recommend that members deny the Application; and NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS: Section 1. That the rates proposed by Oncor to be recovered (through its electric rates charged to customers located within the City limits, are hereby found to be unreasonable and shall be denied. Error! Unknown document property name. i Section 2. That the Company shall continue to charge its existing rates to customers within the City. Section 3. That the City's reasonable rate case expenses shall be reimbursed in full by Oncor within 30 days of the adoption of this Resolution. Section 4. That it is hereby officially found and determined th4t 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. Section 5. That a copy of this Resolution shall be sent to O cor, 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 Llo�d Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725. PASSED AND APPROVED this / day of /i , 2017. I� Mayor ATTEST: City Secretary APPROVED AS TO FORM: City Attorney Error! Unknown document property name. 2 pNC�R. Stephen N. Ragland Vice President Regulatory May 1, 2018 City of Southlake 1400 Main Street, STE 460 Southlake, TX 76092 To the Honorable Mayor for the City of Southlake: Attached for filing please find a Application and Statement of Intent of Oncor Electric Delivery Company LLC ("Oncor") for Authority to Decrease Rates Based on the Tax Cuts and Jobs Act of 2017. This rate decrease is identical to those being filed today with other regulatory authorities and affects all customers served by Oncor. Enclosed is a single volume that contains the Application and Statement of Intent filed with the Public Utility Commission of Texas ("Commission") including the direct testimony of two Company witnesses, proposed tariffs and supporting workpapers. It is Oncor's intent to have system -wide rates in effect and towards that end intends to appeal to the Commission any action or inaction taken by the City, and request consolidation into one proceeding at the Commission. Once the appeal is granted, the City would have standing as a party to participate fully in the proceeding at the Commission. Should you have any questions concerning this filing, please contact or your Oncor local area manager. Very truly yours, IS*/,e"j d. q_1_z Oncor 1616 Woodall Rodgers Freeway Dallas, Texas 75202 Tel: 214.486.5255 steve.ragland@oncor.com DOCKET NO. APPLICATION OF ONCOR ELECTRIC § DELIVERY COMPANY LLC FOR § BEFORE THE AUTHORITY TO DECREASE RATES § PUBLIC UTILITY COMMISSION BASED ON THE TAX CUTS AND JOBS § OF TEXAS ACT OF 2017 § TABLE OF CONTENTS Bates Page Application (File name: Application.docx)............................................................................3 Attachment 1 Cities Served by Oncor that have Ceded Original Jurisdiction (File name: Non-OJ Cities.docx)...........................................................................9 Attachment 2 Cities Served by Oncor with Original Jurisdiction (File name: OJ Cities.docx).................................................................................11 Attachment 3 Proposed Notice(s) (File names: REP notice.docx; 46957 Notice.docx; Wholesale notice.docx) ...........13 Attachment 4 Draft Standard Protective Order (File name: Proposed Protective Order.docx)........................................................16 Testimony J. Michael Sherburne (File name: Sherburne Direct.doc)...............................................35 Exhibit JMS-1 (File name: Exhibit _JMS-1.doc...........................................................56 Exhibit JMS-2 (File name: Change in Tax Rate from 35 to TC1A and EXDFIT.xlsx).........................59 Exhibit JMS-3 (File name: Change in Tax Rate from 35 to TCIA and EXDFIT.xlsx).........................60 Exhibit JMS-4 (File name: Change in Tax Rate from 35 to TCIA and EXDFIT.xlsx).........................61 Exhibit JMS-5 (File name: Change in Tax Rate from 35 to TCIA and EXDFIT.xlsx).........................64 Exhibit JMS-6 (File name: JMS-6.pdf)........................................................................66 Exhibit JMS-7 (File name: JMS-7.pdf)........................................................................90 Exhibit JMS-8 (File name: Tax Filing Exhibit JMS 8.xlsx)...........................................96 Exhibit JMS-9 (File name: Tax Filing Exhibit JMS 9.pdf)............................................99 Exhibit JMS-10 (File name: Tax Filing Exhibit JMS 10.xlsx).....................................105 Exhibit JMS-11 (File name: Change in Tax Rate from 35 to TCIA and excluding EXDFIT.xlsx) .......106 Exhibit JMS-12 (File name: Change in Tax Rate from 35 to TCIA and excluding EXDFIT.xlsx) .......107 Exhibit JMS-13 (File name: Change in Tax Rate from 35 to TCIA and excluding EXDFIT.xlsx) .......108 Exhibit JMS-14 (File name: Tax Filing Exhibit JMS 14.xlsx)..................................... Ill Exhibit JMS -15 (File name: JMS- 15.pdf)..................................................................112 1 Testimony Workpapers of J. Michael Sherburne JMS/WP-1 (File name: II-I_46957.xlsx)...............................................................115 JMS/WP-2 (File name: II-I_TCIA and _EXDFIT.xlsx)..........................................454 JMS/WP-3 File name: 2 1 % Lighting Work a er.xlsx 826 JMS/WP-4 (File name: JMS_WP-4.xlsx)..............................................................833 JMS/WP-5 (File name: Tax_Reform_Baseline_COS-Reform%.xlsx).............................834 Bonnie L. Clutter (File name: Clutter Direct.doex).....................................................1171 Exhibit BLC-1 (File name: Exhibit BLC-1 Sch I-A-l.xlsx)......................................1188 Exhibit BLC-2 (File name: Exhibit BLC-2 Tax Method 1.xlsx)................................1191 Exhibit BLC-3 (File name: Exhibit BLC-3 Non -plant EDFIT Amo.xlsx) ..................1194 Exhibit BLC-4 (File name: Exhibit BLC-4 Depreciation in Rates.xlsx) .....................1197 Testimony Workpapers of Bonnie L. Clutter BLC/WP-1 (File name: Clutter Workpapers.xlsx)...............................................1199 BLC/WP-2 (File name: Clutter Workpapers.xlsx)...............................................1200 BLC/WP-3 (File name: Clutter Workpapers.xlsx)...............................................1201 4 E DOCKET NO. APPLICATION OF ONCOR § ELECTRIC DELIVERY COMPANY § BEFORE THE LLC FOR AUTHORITY TO § PUBLIC UTILITY COMMISSION DECREASE RATES BASED ON THE § OF TEXAS TAX CUT AND JOBS ACT OF 2017 § APPLICATION AND STATEMENT OF INTENT OF ONCOR ELECTRIC DELIVERY COMPANY LLC FOR AUTHORITY TO DECREASE RATES BASED ON THE TAX CUT AND JOBS ACT OF 2017 TO THE HONORABLE PUBLIC UTILITY COMMISSION OF TEXAS AND MUNICIPAL REGULATORY AUTHORITIES: Oncor Electric Delivery Company LLC ("Oncor" or "Company"), an investor -owned electric utility under the Public Utility Regulatory Act,' Texas Utilities Code Title 2, files this Application and Statement of Intent for Authority to Decrease Rates Based on the Tax Cuts and Jobs Act of 2017 ("Application"), respectfully showing the following: I. INTRODUCTION AND REQUEST The rates set in Docket No. 46957, Oncor's most recent base -rate case, were based on a 2016 calendar test year and included federal income tax ("FIT") expense based upon the then - current 35% rate.2 Since the Public Utility Commission of Texas's ("Commission") final order in that case, the Tax Cuts and Jobs Act of 2017 ("TCJA" )3 passed and became effective January 1, 2018. The TCJA, in part, amends the Internal Revenue Code to reduce the FIT rate applicable to Oncor from 35% to 21%. Thus, consistent with the Commission's order in Docket No. 469574 and the approval in Docket No. 479885 of Oncor's last interim transmission cost of ' Tex. Util. Code Ann. §§ 11.001-58.302 (West 2016 & Supp. 2017), §§ 59.001-66.016 (West 2007 & Supp. 2017) ("PURA"). 2 See Application of Oncor Electric Delivery Company LLC for Authority to Change Rates, Docket No. 46957, Order (Oct. 13, 2017). 3 Act to Provide for Reconciliation Pursuant to Tiles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, Pub. L. No. 115-97, 113 Stat. 2054 (Dec. 22, 2017). 4 Docket No. 46957, Order at 15, Ordering Paragraph No. 3: If the corporate federal income tax rate is significantly decreased before Oncor's next base -rate case, when the change becomes effective, Oncor shall record as a 1 3 service ("TCOS") update, Oncor has filed this proceeding to reduce its rates based on the TCJA and refund revenues collected through its current rates from January 1, 2018 until the effective date of the new rates proposed in this proceeding (see Section V below). As detailed in the direct testimony supporting this Application, the Company has calculated modified, decreased rates that reflect the lower 21 % FIT rate for its baseline revenues set in Docket No. 46957, the increase in its excess accumulated deferred federal income taxes ("excess ADFIT") created by the lower 21 % FIT rate, and the appropriate amortization of this excess ADFIT. This Application addresses these TCJA impacts on a comprehensive basis for Oncor's transmission and distribution rates.6 As further discussed below, the Company has included proposed, revised tariffs that are designed to return approximately $181 million to its customers.7 Oncor is not requesting recovery of rate -case expenses associated with this proceeding at this time, but it will track those expenses and reserves the right to defer, and request recovery of, its reasonable and necessary rate -case expenses at a later time. regulatory liability the amount that Oncor collects through the approved revenue requirement included in its rates for federal income taxes that is above the new corporate federal income tax rate ... Any excess deferred taxes created by tax rate changes will be returned to ratepayers as prescribed by the Commission and in accordance with the normalization rules prescribed under federal income tax law. 5 Application of Oncor Electric Delivery Company LLC for Interim Update of Wholesale Transmission Rates, Docket No. 47988, Notice of Approval at 5, Ordering Paragraph No. 6 (Mar. 27, 2018) (addressing the timing and substance, in part, of this rate decrease filing). 6 In its most recent interim TCOS update, Oncor received approval of transmission rates that reflect the lower 2 1 % FIT rate for both existing and incremental revenues (returning approximately $52 million), however, that approved rate did not address the impacts of excess ADFIT. Id. at 5, Ordering Paragraph No. 6 ("On or before May 1, 2018, Oncor shall initiate a separate tax proceeding to return to Oncor's customers the protected and net unprotected excess ADFIT—for both transmission and distribution —that have resulted from the TCJA."). To the extent any Oncor transmission or distribution rates do not reflect the full impact of the TCJA, this Application now addresses those impacts. In addition to the approximately $52 million that Oncor returned through its Docket No. 47988 interim TCOS update, and the approximately $181 million it seeks to return through this filing, Company witness Bonnie L. Clutter's direct testimony explains the approximately $30 million regulatory liability as of March 1, 2018, which captures the excess amounts collected at rates based on a 35% FIT rate. Company witness J. Michael Sherburne's direct testimony addresses the timing and methodology of Oncor's proposed refund of these amounts. Pa II. FILING OVERVIEW This filing consists of the Table of Contents, this Application, the direct testimony of the following two Company witnesses and the proposed tariffs and workpapers that they sponsor: Witness Principal Subjects Covered J. Michael Sherburne Proposed revisions in retail delivery service rates and wholesale distribution rates; proposed revisions to Oncor's Senior Director - Network Transmission Service ("NTS") rates associated Rates & Financial with excess ADFIT effects; refunds related to billing of Analysis NTS rates from January 1 - March 26, 2018; refunds related to billing of current retail and wholesale distribution rates in 2018; and revised tariffs and proposed form of tariff riders to effect refunds Bonnie L. Clutter Impacts of TCJA FIT rate change and excess ADFIT based Tax Accounting on TCJA FIT rate change on Oncor's revenue requirement; determination of amount of book depreciation expense Manager included in Oncor's rates III. DESIGNATED REPRESENTATIVES Oncor's designated legal and business representatives for purposes of this proceeding are: Tab R. Urbantke State Bar No. 24034717 Lauren Freeland State Bar No. 24083023 Vinson & Elkins LLP 2001 Ross Avenue, Suite 3900 Dallas, Texas 75201 214.220.7758 214.999.7758 (fax) turbantke@velaw.com lreeland@velaw.com Stephen N. Ragland Vice President - Regulatory Oncor Electric Delivery Company LLC 1616 Woodall Rodgers Freeway Dallas, Texas 75202 214.486.5255 stephen.ragland@oneor.com All pleadings, orders, discovery requests, and other matters related to this Application should be served on Oncor by email at regulatory@oncor.com or fax at 214.486.3221 and at the email addresses listed above. IV. JURISDICTION The Commission has exclusive jurisdiction over the rates, operations, and services of Oncor in areas outside municipalities under PURA § 32.001(a)(1) and for those municipalities 3 5 that have ceded jurisdiction to the Commission under PURA § 33.002(b). The Application includes a list of those municipalities in Attachment 1. Each municipality in Oncor's service area that has not ceded jurisdiction to the Commission has exclusive jurisdiction over the rates, operations, and services of Oncor under PURA § 33.001. The Application includes a list of original jurisdiction municipalities in Attachment 2. The Commission also has sole jurisdiction over Oncor's transmission rates under PURA § 35.004(d). The Commission also has exclusive appellate jurisdiction under PURA § 32.001(b) to review de novo an order or ordinance of a municipality exercising original jurisdiction under PURA. Oncor is filing this Application simultaneously with all its original jurisdiction municipalities. Oncor will appeal the actions of those municipalities to the Commission and will seek consolidation of those appeals with this docket. It is Oncor's intention to seek one set of system -wide rates for all customer classes served on the Oncor system. V. PROPOSED TARIFFS AND EFFECTIVE DATES Consistent with PURA § 36.102(a), Oncor proposes an effective date for its proposed changes of June 5, 2018, 35 days after filing this Application. The Company notes, however, that it will not implement the proposed changes to its tariffs until and in accordance with the Commission's final order, which Oncor requests to include a September 1, 2018 effective date. Oncor also requests that the form of the proposed riders —Rider TRF — Tax Refund Factor and Rider WTRF — Wholesale Tax Refund Factor —be approved subject to a compliance filing to be submitted by the Company for implementation on November 1, 2018. Oncor is also requesting under 16 TAC § 22.125 that the Commission enter an interim order that approves the Company's proposed NTS rate effective July 1, 2018, subject to refund or surcharge to the extent the final approved rate differs from the interim rate. As Mr. Sherburne explains in his direct testimony, Oncor requests an interim order for the NTS rate so the updated TCOS revenue requirement may be incorporated into the baseline data to be used in Oncor's next interim TCOS filing.$ Oncor seeks the parties' agreement that the proposed reduced NTS rate be implemented on an interim basis. Mr. Sherburne's direct testimony includes excerpts of each of the changed tariff sheets in s This Application is not an interim TCOS update under 16 TAC § 25.192(h). In an abundance of caution and to the extent deemed necessary, however, Oncor requests that the Commission grant Oncor a good -cause exception under 16 TAC § 25.3(b) to the twice -per -year restriction of 16 TAC § 25.192(h)(1). rd 6 his Exhibits JMS-6 and JMS-7 and the form of the proposed riders in his Exhibit JMS-15. VI. NOTICE AND INTERVENTION DEADLINE Consistent with 16 Tex. Admin. Code § 22.51(b)(2) (TAC), Oncor will provide notice of this filing by mailing a notice substantially in the form included as Attachment 3 by first-class mail to all retail electric providers serving customers in Oncor's service area and all entities listed in the Commission's transmission matrix in Docket No. 47777, Commission Staffs Application to Set 2018 Wholesale Transmission Service Charges for the Electric Reliability Council of Texas. Under 16 TAC § 22.51(b)(3), Oncor will provide a copy of its statement of intent to the appropriate officer of each municipality in Oncor's service area. Additionally, Oncor will provide a notice substantially in the form included as Attachment 3 by first-class mail to all parties in Docket No. 46957, Application of Oncor Electric Delivery Company LLC for Authority to Change Rates, Oncor's most recent comprehensive base -rate proceeding. The Company requests that the intervention deadline be set as June 15, 2018, which is 45 days after the date of this Application. VII. REQUESTED PROTECTIVE ORDER Included with this Application as Attachment 4 is a form of the Commission's standard protective order, under 16 TAC § 22.142(c), for the protection of materials submitted in this proceeding containing privileged, confidential, competitively sensitive, proprietary trade secret data, and commercial and financial information. Oncor requests that the Commission issue a protective order in the form of Attachment 4 and require all parties to adhere to its terms. VIII. CONCLUSION AND PRAYER Based on the Application and supporting evidence in this proceeding, Oncor respectfully requests that Commission approve the Application and authorize Oncor to implement the reduction in rates as proposed in this Application, and grant the Company such other and further relief it has requested herein and to which it may be entitled. k, 7 Respectfully submitted, By: Tab R. Urbantke State Bar No. 24034717 Lauren Freeland State Bar No. 24083023 Vinson & Elkins LLP 2001 Ross Avenue, Suite 3900 Dallas, Texas 75201 214.220.7758 214.999.7758 (fax) turbantke@velaw.com lfreeland@velaw.com Matthew C. Henry Senior Vice President, General Counsel, and Secretary State Bar No. 00790870 Howard V. Fisher Senior Counsel State Bar No. 07051500 Oncor Electric Delivery Company LLC 1616 Woodall Rodgers Freeway Dallas, Texas 75202 ATTORNEYS FOR ONCOR ELECTRIC DELIVERY COMPANY LLC CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the foregoing has been e-mailed, hand delivered, or sent via overnight delivery or first-class United States mail, postage prepaid, to Commission Staff, the Office of Public Utility Counsel, and the municipalities listed in Attachment 2 to this Application on this the 1 st day of May, 2018. Mej 8 ATTACHMENT 1 PAGE 1 OF 2 CITIES SERVED BY ONCOR THAT HAVE CEDED ORIGINAL JURISDICTION Abbott Comanche Gunter Alma Como Hebron Alvarado Cool Hewitt Alvord Corinth Hickory Creek Angus Corsicana Hideaway Anna Crandall Holland Annetta North Crockett Honey Grove Annetta South Crowley Hubbard Annona Cumby Hudson Appleby Cushing Huntington Argyle Dawson Hutto Athens Dean Italy Aurora Dorchester Itasca Bangs Dublin Jewett Barry Ector Jolly Bartlett Edgecliff Village Josephine Bellevue Edgewood Joshua Blanket Edom Justin Blooming Grove Elgin Kaufman Boyd Elkhart Keene Brownsboro Emhouse Kemp Buckholts Enchanted Oaks Kerens Buffalo Eureka Knollwood Burke Eustace Krum Bynum Everman Ladonia Caddo Mills Forney Lake Bridgeport Cameron Frost Lake Dallas Campbell Garrett Lakeside City Caney City Gholson Latexo Canton Godley Lavon Carbon Golinda Leona Celeste Goodlow Leroy Centerville Gorman Lindsay Chico Grandfalls Lipan Chireno Grandview Lorena Clarksville Granger Lovelady Cockrell Hill Grapeland Lowry Crossing Collinsville Gun Barrel City Lucas 9 ATTACHMENT 1 PAGE 2 OF 2 CITIES SERVED BY ONCOR THAT HAVE CEDED ORIGINAL JURISDICTION Mabank Ponder Weir Malakoff Post Oak Bend Wells Malone Powell West Marquez Poynor Westbrook McGregor Princeton Wickett Melissa Pyote Wills Point Melvin Quinlan Windom Mertens Ranger Wolfe City Milano Reno - Lamar County Yantis Mildred Reno - Parker County Zavalla Milford Retreat Millsap Rhome Mobile City Rice Moody Richland Total = 200 Morgan's Point Resort Rockdale Mount Calm Rogers Murchison Rosser Mustang Roxton Nacogdoches Royse City Navarro Runaway Bay Nevada Sadler New Chapel Hill Savoy New Fairview Shady Shores Newark Southmayd Neylandville Springtown Northlake St. Paul Oak Grove Streetman Oak Leaf Taylor Oak Valley Terrell Oakwood Thorndale Oglesby Thorntonville Ovilla Thrall Payne Springs Tira Pecan Gap Tool Pecan Hill Trinidad Penelope Valley View Pflugerville Van Alstyne Pleasant Valley Venus 10 ATTACHMENT 2 PAGE 1 OF 2 CITIES SERVED BY ONCOR WITH ORIGINAL JURSIDICTION Ackerly Colleyville Frankston Addison Colorado City Frisco Aledo Commerce Gainesville Allen Coolidge Gallatin Alto Cooper Garland Andrews Coppell Georgetown Annetta Copperas Cove Glenn Heights Archer City Coupland Graford Arlington Crane Graham Arp Cresson Grand Prairie Austin Cross Roads Grapevine Azle Dallas Greenville Balch Springs Dalworthington Gardens Groesbeck Bardwell Decatur Haltom City Bedford DeLeon Harker Heights Bellmead Denison Haslet Bells Denton Heath Belton Desoto Henrietta Benbrook Diboll Highland Park Beverly Hills Dish Hillsboro Big Spring Dodd City Holliday Blue Mound Duncanville Howe Bonham Early Hudson Oaks Brady Eastland Hurst Breckenridge Electra Hutchins Bridgeport Ennis Iowa Park Brownwood Euless Irving Bruceville-Eddy Fairfield Jacksboro Bullard Fairview Jacksonville Burkburnett Farmers Branch Jarrell Burleson Farmersville Keller Carrollton Fate Kennedale Cashion Community Ferris Killeen Cedar Hill Florence Lacy -Lakeview Celina Flower Mound Lake Worth Chandler Forest Hill Lakeside Cleburne Forsan Lamesa Coahoma Fort Worth Lancaster 11 CITIES SERVED BY ONCOR WITH ORIGINAL JURSIDICTION Lewisville Plano Lindale Pottsboro Little Elm Prosper Little River Academy Ravenna Loraine Red Oak Lott Richardson Lufkin Richland Hills Manor Richland Springs Mansfield Riesel Marlin River Oaks Mart Roanoke Maypearl Robinson McAllen Rockwall McKinney Roscoe McLendon -Chisholm Rosebud Mesquite Round Rock Mexia Rowlett Midland Rusk Midlothian Sachse Mineral Wells Saginaw Mission Salado Monahans Sanctuary Muenster Sansom Park Murphy Seagoville New Summerfield Sherman Nolanville Snyder Noonday Southlake North Richland Hills Stanton Oak Point Stephenville Odessa Sulphur Springs O'Donnell Sunnyvale Overton Sweetwater Palestine Teague Palmer Tehuacana Pantego Temple Paradise The Colony Paris Thornton Parker Trophy Club ATTACHMENT 2 PAGE 2OF2 Troup Troy Tyler University Park Van Waco Watauga Waxahachie Weatherford Westover Hills Westworth Village White Settlement Whitehouse Wichita Falls Willow Park Wilmer Wink Woodway Wortham Wylie Total = 210 f, ATTACHMENT 3 NC Re Stephen N. Ragland Vice President Regulatory NOTICE OF RATE DECREASE REQUEST May 1, 2018 Notice to all REPS Certified with the Commission: On May 1, 2018, Oncor Electric Delivery Company LLC ("Oncor") filed with the Public Utility Commission of Texas ("Commission") its Application and Statement of Intent for Authority to Decrease Rates Based on the Tax Cuts and Jobs Act of 2017 ("Application"). Oncor's Application requests a decrease in rates to reflect a reduction in its revenue requirement based on the lowered federal income tax ("FIT') rate, from 35% to 21 %, applicable to Oncor under the Tax Cuts and Jobs Act of 2017 ("TCJA"). The Application also quantifies the amount of excess accumulated deferred FIT that has been recorded as a regulatory liability also based on the lowered tax rate and the annual amount that will be returned to customers through reduced FIT expense. The total resulting reduction to Oncor's revenue requirement is a net decrease in Oncor's transmission and distribution rates of approximately $181 million compared to Oncor's rates established in Docket No. 46957, its last base -rate case. This is a 4.18% decrease compared to the $4,332 million revenue requirement approved in that docket. Oncor is also proposing a refund of the FIT expense amounts in excess of the 21 % rate that have been collected and deferred since January 1, 2018, through the date the revised tariffs proposed in the Application are effective. If approved, the decreased rates will be charged to Oncor's direct customers, all retail electric providers ("REPS"), in those portions of Oncor's service area under the Commission's jurisdiction. Each such REP is potentially affected by the proposed change. Depending on REPS' actions, the end -use customer classes of such REPS are potentially affected by the proposed change. Additionally, the result changes Oncor's transmission cost of service rates that would impact all load -serving entities in the Electric Reliability Council of Texas region. Oncor is requesting a July 1, 2018 effective date for its proposed wholesale rate decrease. For its remaining proposed rate decreases, Oncor proposes an effective date of June 5, 2018, however, it will not implement the proposed changes to its tariffs until and in accordance with the Commission's final order, which Oncor requests to include a September 1, 2018 effective date. Persons who wish to intervene in or comment upon these proceedings, Application of Oncor Electric Delivery Company LLC for Authority to Decrease Rates Based on the Tax Cuts and Jobs Act of 2017, Docket No. , should notify the Commission as soon as possible, as an intervention deadline will be imposed. A request to intervene or for further information should be mailed to the Public Utility Commission of Texas, P.O. Box 13326, Austin, Texas 78711- 3326. Further information may also be obtained by calling the Commission at (512) 936-7120 or (888) 782-8477. Hearing- and speech -impaired individuals with text telephones (TTY) may contact the Commission at (512) 936-7136. The deadline for intervention in the proceeding is June 15, 2018, 45 days after the date the Application was filed with the Commission. V ` Oncor n f . 1616 Woodall Rodgers Freeway Dallas, Texas 75202 Tel: 214.486.5255 stephen.ragland@oncor.com 13 N5CR* Stephen N. Ragland Vice President Regulatory NOTICE OF RATE DECREASE REQUEST May 1, 2018 Notice to Customers of Wholesale Transmission: On May 1, 2018, Oncor Electric Delivery Company LLC ("Oncor") filed with the Public Utility Commission of Texas ("Commission") its Application and Statement of Intent for Authority to Decrease Rates Based on the Tax Cuts and Jobs Act of 2017 ("Application"). Oncor's Application requests a decrease in rates to reflect a reduction in its revenue requirement based on the lowered federal income tax ("FIT') rate, from 35% to 21 %, applicable to Oncor under the Tax Cuts and Jobs Act of 2017 ("TCJA"). The Application also quantifies the amount of excess accumulated deferred FIT that has been recorded as a regulatory liability also based on the lowered tax rate and the annual amount that will be returned to customers through reduced FIT expense. The total resulting reduction to Oncor's revenue requirement is a net decrease in Oncor's transmission and distribution rates of approximately $181 million compared to Oncor's rates established in Docket No. 46957, its last base -rate case. This is a 4.18% decrease compared to the $4,332 million revenue requirement approved in that docket. Oncor is also proposing a refund of the FIT expense amounts in excess of the 21 % rate that have been collected and deferred since January 1, 2018, through the date the revised tariffs proposed in the Application are effective. If approved, the decreased rates will be charged to Oncor's direct customers, all retail electric providers ("REPS"), in those portions of Oncor's service area under the Commission's jurisdiction. Each such REP is potentially affected by the proposed change. Depending on REPS' actions, the end -use customer classes of such REPS are potentially affected by the proposed change. Additionally, the result changes Oncor's transmission cost of service rates that would impact all load -serving entities in the Electric Reliability Council of Texas region. Oncor is requesting a July 1, 2018 effective date for its proposed wholesale rate decrease. For its remaining proposed rate decreases, Oncor proposes an effective date of June 5, 2018, however, it will not implement the proposed changes to its tariffs until and in accordance with the Commission's final order, which Oncor requests to include a September 1, 2018 effective date. Persons who wish to intervene in or comment upon these proceedings, Application of Oncor Electric Delivery Company LLC for Authority to Decrease Rates Based on the Tax Cuts and Jobs Act of 2017, Docket No. , should notify the Commission as soon as possible, as an intervention deadline will be imposed. A request to intervene or for further information should be mailed to the Public Utility Commission of Texas, P.O. Box 13326, Austin, Texas 78711- 3326. Further information may also be obtained by calling the Commission at (512) 936-7120 or (888) 782-8477. Hearing- and speech -impaired individuals with text telephones (TTY) may contact the Commission at (512) 936-7136. The deadline for intervention in the proceeding is June 15, 2018, 45 days after the date the Application was filed with the Commission. IS Oncor . 1616 Woodall Rodgers Freeway *144JDallas, Texas 75202 Tel: 214.486.5255 stephen.ragland@oncor.com 14 Stephen N. Ragland Vice President Regulatory NOTICE OF RATE DECREASE REQUEST May 1, 2018 Notice to all Parties in PUC Docket 46957: On May 1, 2018, Oncor Electric Delivery Company LLC ("Oncor") filed with the Public Utility Commission of Texas ("Commission") its Application and Statement of Intent for Authority to Decrease Rates Based on the Tax Cuts and Jobs Act of 2017 ("Application"). Oncor's Application requests a decrease in rates to reflect a reduction in its revenue requirement based on the lowered federal income tax ("FIT') rate, from 35% to 21%, applicable to Oncor under the Tax Cuts and Jobs Act of 2017 ("TCJA"). The Application also quantifies the amount of excess accumulated deferred FIT that has been recorded as a regulatory liability also based on the lowered tax rate and the annual amount that will be returned to customers through reduced FIT expense. The total resulting reduction to Oncor's revenue requirement is a net decrease in Oncor's transmission and distribution rates of approximately $181 million compared to Oncor's rates established in Docket No. 46957, its last base -rate case. This is a 4.18% decrease compared to the $4,332 million revenue requirement approved in that docket. Oncor is also proposing a refund of the FIT expense amounts in excess of the 21 % rate that have been collected and deferred since January 1, 2018, through the date the revised tariffs proposed in the Application are effective. If approved, the decreased rates will be charged to Oncor's direct customers, all retail electric providers ("REPS"), in those portions of Oncor's service area under the Commission's jurisdiction. Each such REP is potentially affected by the proposed change. Depending on REPS' actions, the end -use customer classes of such REPS are potentially affected by the proposed change. Additionally, the result changes Oncor's transmission cost of service rates that would impact all load -serving entities in the Electric Reliability Council of Texas region. Oncor is requesting a July 1, 2018 effective date for its proposed wholesale rate decrease. For its remaining proposed rate decreases, Oncor proposes an effective date of June 5, 2018, however, it will not implement the proposed changes to its tariffs until and in accordance with the Commission's final order, which Oncor requests to include a September 1, 2018 effective date. Persons who wish to intervene in or comment upon these proceedings, Application of Oncor Electric Delivery Company LLC for Authority to Decrease Rates Based on the Tax Cuts and Jobs Act of 2017, Docket No. , should notify the Commission as soon as possible, as an intervention deadline will be imposed. A request to intervene or for further information should be mailed to the Public Utility Commission of Texas, P.O. Box 13326, Austin, Texas 78711- 3326. Further information may also be obtained by calling the Commission at (512) 936-7120 or (888) 782-8477. Hearing- and speech -impaired individuals with text telephones (TTY) may contact the Commission at (512) 936-7136. The deadline for intervention in the proceeding is June 15, 2018, 45 days after the date the Application was filed with the Commission. �^< Oncor _r\} 1616 Woodall Rodgers Freeway Dallas, Texas 75202 Tel: 214.486.5255 stephen.ragland@oncor.com 15 ATTACHMENT 4 PUC DOCKET NO. APPLICATION OF ONCOR § ELECTRIC DELIVERY COMPANY § PUBLIC UTILITY COMMISSION LLC FOR AUTHORITY TO § DECREASE RATES BASED ON THE § OF TEXAS TAX CUTS AND JOBS ACT OF 2017 § PROTECTIVE ORDER This Protective Order shall govern the use of all information deemed confidential (Protected Materials) or highly confidential (Highly Sensitive Protected Materials), including information whose confidentiality is currently under dispute, by a party providing information to the Public Utility Commission of Texas (Commission) or to any other party to this proceeding. It is ORDERED that: 1. DesilInation of Protected Materials. Upon producing or filing a document, including, but not limited to, records on a computer disk or other similar electronic storage medium in this proceeding, the producing party may designate that document, or any portion of it, as confidential pursuant to this Protective Order by typing or stamping on its face "PROTECTED PURSUANT TO PROTECTIVE ORDER ISSUED IN DOCKET NO. " (or words to this effect) and consecutively Bates Stamping each page. Protected Materials and Highly Sensitive Protected Materials include the documents so designated, as well as the substance of the information contained in the documents and any description, report, summary, or statement about the substance of the information contained in the documents. 2. Materials Excluded from Protected Materials Designation. Protected Materials shall not include any information or document contained in the public files of the Commission or any other federal or state agency, court, or local governmental authority subject to the Public Information Act.' Protected Materials also shall not include documents or information which at the time of, or prior to disclosure in, a proceeding is or was public 1 TEx. Gov'T CODE ANN. §§ 552.001-552.353 (West 2012 & Supp. 2016). 16 Docket No. Protective Order Page 2 of 17 knowledge, or which becomes public knowledge other than through disclosure in violation of this Protective Order. 3. Reviewing Party. For the purposes of this Protective Order, a "Reviewing Party" is any party to this docket. 4. Procedures for Designation of Protected Materials. On or before the date the Protected Materials or Highly Sensitive Protected Materials are provided to the Commission, the producing party shall file with the Commission and deliver to each party to the proceeding a written statement, which may be in the form of an objection, indicating: (a) any exemptions to the Public Information Act claimed to apply to the alleged Protected Materials; (b) the reasons supporting the producing party's claim that the responsive information is exempt from public disclosure under the Public Information Act and subject to treatment as protected materials; and (c) that counsel for the producing party has reviewed the information sufficiently to state in good faith that the information is exempt from public disclosure under the Public Information Act and merits the Protected Materials designation. 5. Persons Permitted Access to Protected Materials. Except as otherwise provided in this Protective Order, a Reviewing Party may access Protected Materials only through its "Reviewing Representatives" who have signed the Protective Order Certification Form (see Attachment A). Reviewing Representatives of a Reviewing Party include its counsel of record in this proceeding and associated attorneys, paralegals, economists, statisticians, accountants, consultants, or other persons employed or retained by the Reviewing Party and directly engaged in this proceeding. At the request of the PUC Commissioners, copies of Protected Materials may be produced by Commission Staff. The Commissioners and their staff shall be informed of the existence and coverage of this Protective Order and shall observe the restrictions of the Protective Order. 6. Highly Sensitive Protected Material Described. The term "Highly Sensitive Protected Materials" is a subset of Protected Materials and refers to documents or information that a producing party claims is of such a highly sensitive nature that making copies of such documents or information or providing access to such documents to employees of the 17 Docket No. Protective Order Page 3 of 17 Reviewing Party (except as specified herein) would expose a producing party to unreasonable risk of harm. Highly Sensitive Protected Materials include but are not limited to: (a) customer -specific information protected by § 32.101(c) of the Public Utility Regulatory Act;2 (b) contractual information pertaining to contracts that specify that their terms are confidential or that are confidential pursuant to an order entered in litigation to which the producing party is a parry; (c) market -sensitive fuel price forecasts, wholesale transactions information and/or market -sensitive marketing plans; and (d) business operations or financial information that is commercially sensitive. Documents or information so classified by a producing party shall bear the designation "HIGHLY SENSITIVE PROTECTED MATERIALS PROVIDED PURSUANT TO PROTECTIVE ORDER ISSUED IN DOCKET NO. " (or words to this effect) and shall be consecutively Bates Stamped. The provisions of this Protective Order pertaining to Protected Materials also apply to Highly Sensitive Protected Materials, except where this Protective Order provides for additional protections for Highly Sensitive Protected Materials. In particular, the procedures herein for challenging the producing party's designation of information as Protected Materials also apply to information that a producing party designates as Highly Sensitive Protected Materials. 7. Restrictions on Copying and Inspection of Highly Sensitive Protected Material. Except as expressly provided herein, only one copy may be made of any Highly Sensitive Protected Materials except that additional copies may be made to have sufficient copies for introduction of the material into the evidentiary record if the material is to be offered for admission into the record. The Reviewing Party shall maintain a record of all copies made of Highly Sensitive Protected Material and shall send a duplicate of the record to the producing party when the copy or copies are made. The record shall specify the location and the person possessing the copy. Highly Sensitive Protected Material shall be made available for inspection only at the location or locations provided by the producing party, except as specified by Paragraph 9. Limited notes may be made of Highly Sensitive Protected Materials, and such notes shall themselves be treated as Highly 2 Public Utility Regulatory Act, Tex. Util. Code Ann. §§ 11.001-66.016 (West 2016 & Supp. 2016) (PURA). 18 Docket No. Protective Order Page 4 of 17 Sensitive Protected Materials unless such notes are limited to a description of the document and a general characterization of its subject matter in a manner that does not state any substantive information contained in the document. 8. Restricting Persons Who May Have Access to Highly Sensitive Protected Material. With the exception of Commission Staff, the Office of the Attorney General (OAG), and the Office of Public Utility Counsel (OPC), and except as provided herein, the Reviewing Representatives for the purpose of access to Highly Sensitive Protected Materials may be persons who are (a) outside counsel for the Reviewing Party, (b) outside consultants for the Reviewing Party working under the direction of Reviewing Party's counsel, or (c) employees of the Reviewing Party working with and under the direction of Reviewing Party's counsel who have been authorized by the presiding officer to review Highly Sensitive Protected Materials. The Reviewing Party shall limit the number of Reviewing Representatives that review Highly Sensitive Protected Materials to the minimum number of persons necessary. The Reviewing Party is under a good faith obligation to limit access to each portion of any Highly Sensitive Protected Materials to two Reviewing Representatives whenever possible. Reviewing Representatives for Commission Staff, OAG, and OPC, for the purpose of access to Highly Sensitive Protected Materials, shall consist of their respective counsel of record in this proceeding and associated attorneys, paralegals, economists, statisticians, accountants, consultants, or other persons employed or retained by them and directly engaged in these proceedings. 9. Copies Provided of Highly Sensitive Protected Material. A producing party shall provide one copy of Highly Sensitive Protected Materials specifically requested by the Reviewing Party to the person designated by the Reviewing Party who must be a person authorized to review Highly Sensitive Protected Material under Paragraph 8. Representatives of the Reviewing Party who are authorized to view Highly Sensitive Protected Material may review the copy of Highly Sensitive Protected Materials at the office of the Reviewing Party's representative designated to receive the information. Any Highly Sensitive Protected Materials provided to a Reviewing Party may not be copied except as provided in Paragraph 7. The restrictions contained herein do not apply 19 Docket No. Protective Order Page 5 of 17 to Commission Staff, OPC, and the OAG when the OAG is representing a party to the proceeding. 10. Procedures in Paragraphs 10-14 Apply to Commission Staff, OPC, and the OAG and Control in the Event of Conflict. The procedures in Paragraphs 10 through 14 apply to responses to requests for documents or information that the producing party designates as Highly Sensitive Protected Materials and provides to Commission Staff, OPC, and the OAG in recognition of their purely public functions. To the extent the requirements of Paragraphs 10 through 14 conflicts with any requirements contained in other paragraphs of this Protective Order, the requirements of these Paragraphs shall control. 11. Copy of Highly Sensitive Protected Material to be Provided to Commission Staff, OPC and the OAG. When, in response to a request for information by a Reviewing Party, the producing party makes available for review documents or information claimed to be Highly Sensitive Protected Materials, the producing party shall also deliver one copy of the Highly Sensitive Protected Materials to the Commission Staff, OPC (if OPC is a party), and the OAG (if the OAG is representing a party) in Austin, Texas. Provided however, that in the event such Highly Sensitive Protected Materials are voluminous, the materials will be made available for review by Commission Staff, OPC (if OPC is a party), and the OAG (if the OAG is representing a party) at the designated office in Austin, Texas. The Commission Staff, OPC (if OPC is a party) and the OAG (if the OAG is representing a party) may request such copies as are necessary of such voluminous material under the copying procedures specified herein. 12. Delivery of the Copy of Highly Sensitive Protected Material to Commission Staff and Outside Consultants. The Commission Staff, OPC (if OPC is a party), and the OAG (if the OAG is representing a party) may deliver the copy of Highly Sensitive Protected Materials received by them to the appropriate members of their staff for review, provided such staff members first sign the certification specified by Paragraph 15. After obtaining the agreement of the producing party, Commission Staff, OPC (if OPC is a party), and the OAG (if the OAG is representing a party) may deliver the copy of Highly 20 Docket No. Protective Order Page 6 of 17 Sensitive Protected Materials received by it to the agreed, appropriate members of their outside consultants for review, provided such outside consultants first sign the certification in Attachment A. 13. Restriction on Copying by Commission Staff, OPC and the OAG. Except as allowed by Paragraph 7, Commission Staff, OPC and the OAG may not make additional copies of the Highly Sensitive Protected Materials furnished to them unless the producing party agrees in writing otherwise, or, upon a showing of good cause, the presiding officer directs otherwise. Commission Staff, OPC, and the OAG may make limited notes of Highly Sensitive Protected Materials furnished to them, and all such handwritten notes will be treated as Highly Sensitive Protected Materials as are the materials from which the notes are taken. 14. Public Information Requests. In the event of a request for any of the Highly Sensitive Protected Materials under the Public Information Act, an authorized representative of the Commission, OPC, or the OAG may furnish a copy of the requested Highly Sensitive Protected Materials to the Open Records Division at the OAG together with a copy of this Protective Order after notifying the producing party that such documents are being furnished to the OAG. Such notification may be provided simultaneously with the delivery of the Highly Sensitive Protected Materials to the OAG. 15. Required Certification. Each person who inspects the Protected Materials shall, before such inspection, agree in writing to the following certification found in Attachment A to this Protective Order: I certify my understanding that the Protected Materials are provided to me pursuant to the terms and restrictions of the Protective Order in this docket, and that I have been given a copy of it and have read the Protective Order and agree to be bound by it. I understand that the contents of the Protected Materials, any notes, memoranda, or any other form of information regarding or derived from the Protected Materials shall not be disclosed to anyone other than in accordance with the Protective Order and unless I am an employee of the Commission or OPC shall be used only for the purpose of the proceeding in Docket No. I acknowledge that the obligations imposed by this certification are pursuant to such Protective Order. Provided, however, if the information 21 Docket No. Protective Order Page 7 of 17 contained in the Protected Materials is obtained from independent public sources, the understanding stated herein shall not apply. In addition, Reviewing Representatives who are permitted access to Highly Sensitive Protected Material under the terms of this Protective Order shall, before inspection of such material, agree in writing to the following certification found in Attachment A to this Protective Order: I certify that I am eligible to have access to Highly Sensitive Protected Material under the terms of the Protective Order in this docket. The Reviewing Party shall provide a copy of each signed certification to Counsel for the producing party and serve a copy upon all parties of record. 16. Disclosures between Reviewing Representatives and Continuation of Disclosure Restrictions after a Person is no Longer Engaged in the Proceeding. Any Reviewing Representative may disclose Protected Materials, other than Highly Sensitive Protected Materials, to any other person who is a Reviewing Representative provided that, if the person to whom disclosure is to be made has not executed and provided for delivery of a signed certification to the party asserting confidentiality, that certification shall be executed prior to any disclosure. A Reviewing Representative may disclose Highly Sensitive Protected Material to other Reviewing Representatives who are permitted access to such material and have executed the additional certification required for persons who receive access to Highly Sensitive Protected Material. In the event that any Reviewing Representative to whom Protected Materials are disclosed ceases to be engaged in these proceedings, access to Protected Materials by that person shall be terminated and all notes, memoranda, or other information derived from the protected material shall either be destroyed or given to another Reviewing Representative of that party who is authorized pursuant to this Protective Order to receive the protected materials. Any person who has agreed to the foregoing certification shall continue to be bound by the provisions of this Protective Order so long as it is in effect, even if no longer engaged in these proceedings. W Docket No. Protective Order Page 8 of 17 17. Producing Party to Provide One Copy of Certain Protected Material and Procedures for Making Additional Copies of Such Materials. Except for Highly Sensitive Protected Materials, which shall be provided to the Reviewing Parties pursuant to Paragraphs 9, and voluminous Protected Materials, the producing party shall provide a Reviewing Party one copy of the Protected Materials upon receipt of the signed certification described in Paragraph 15. Except for Highly Sensitive Protected Materials, a Reviewing Party may make further copies of Protected Materials for use in this proceeding pursuant to this Protective Order, but a record shall be maintained as to the documents reproduced and the number of copies made, and upon request the Reviewing Party shall provide the party asserting confidentiality with a copy of that record. 18. Procedures Regarding Voluminous Protected Materials. P.U.C. PROC. R. 22.144(h) will govern production of voluminous Protected Materials. Voluminous Protected Materials will be made available in the producing party's voluminous room, in Austin, Texas, or at a mutually agreed upon location, Monday through Friday, 9:00 a.m. to 5:00 p.m. (except on state or Federal holidays), and at other mutually convenient times upon reasonable request. 19. Reviewing Period Defined. The Protected Materials may be reviewed only during the Reviewing Period, which shall commence upon entry of this Protective Order and continue until the expiration of the Commission's plenary jurisdiction. The Reviewing Period shall reopen if the Commission regains jurisdiction due to a remand as provided by law. Protected materials that are admitted into the evidentiary record or accompanying the evidentiary record as offers of proof may be reviewed throughout the pendency of this proceeding and any appeals. 20. Procedures for Making Copies of Voluminous Protected Materials. Other than Highly Sensitive Protected Materials, Reviewing Parties may take notes regarding the information contained in voluminous Protected Materials made available for inspection or they may make photographic, mechanical or electronic copies of the Protected Materials, subject to the conditions in this Protective Order; provided, however, that before photographic, mechanical or electronic copies may be made, the Reviewing Party 23 Docket No. Protective Order Page 9 of 17 seeking photographic, mechanical or electronic copies must provide written confirmation of the receipt of copies listed on Attachment B of this Protective Order identifying each piece of Protected Materials or portions thereof the Reviewing Party will need. 21. Protected Materials to be Used Solely for the Purposes of These Proceedinsts. All Protected Materials shall be made available to the Reviewing Parties and their Reviewing Representatives solely for the purposes of these proceedings. Access to the Protected Materials may not be used in the furtherance of any other purpose, including, without limitation: (a) any other pending or potential proceeding involving any claim, complaint, or other grievance of whatever nature, except appellate review proceedings that may arise from or be subject to these proceedings; or (b) any business or competitive endeavor of whatever nature. Because of their statutory regulatory obligations, these restrictions do not apply to Commission Staff or OPC. 22. Procedures for Confidential Treatment of Protected Materials and Information Derived from Those Materials. Protected Materials, as well as a Reviewing Party's notes, memoranda, or other information regarding or derived from the Protected Materials are to be treated confidentially by the Reviewing Party and shall not be disclosed or used by the Reviewing Party except as permitted and provided in this Protective Order. Information derived from or describing the Protected Materials shall be maintained in a secure place and shall not be placed in the public or general files of the Reviewing Party except in accordance with the provisions of this Protective Order. A Reviewing Party must take all reasonable precautions to insure that the Protected Materials including notes and analyses made from Protected Materials that disclose Protected Materials are not viewed or taken by any person other than a Reviewing Representative of a Reviewing Party. 23. Procedures for Submission of Protected Materials. If a Reviewing Party tenders for filing any Protected Materials, including Highly Sensitive Protected Materials, or any written testimony, exhibit, brief, motion or other type of pleading or other submission at the Commission or before any other judicial body that quotes from Protected Materials or discloses the content of Protected Materials, the confidential portion of such submission 24 Docket No. Protective Order Page 10 of 17 shall be filed and served in sealed envelopes or other appropriate containers endorsed to the effect that they contain Protected Material or Highly Sensitive Protected Material and are sealed pursuant to this Protective Order. If filed at the Commission, such documents shall be marked "PROTECTED MATERIAL" and shall be filed under seal with the presiding officer and served under seal to the counsel of record for the Reviewing Parties. The presiding officer may subsequently, on his/her own motion or on motion of a party, issue a ruling respecting whether or not the inclusion, incorporation or reference to Protected Materials is such that such submission should remain under seal. If filing before a judicial body, the filing party: (a) shall notify the party which provided the information within sufficient time so that the producing party may seek a temporary sealing order; and (b) shall otherwise follow the procedures in Rule 76a, Texas Rules of Civil Procedure. 24. Maintenance of Protected Status of Materials during Pendency of Appeal of Order Holding Materials are not Protected Materials. In the event that the presiding officer at any time in the course of this proceeding finds that all or part of the Protected Materials are not confidential or proprietary, by finding, for example, that such materials have entered the public domain or materials claimed to be Highly Sensitive Protected Materials are only Protected Materials, those materials shall nevertheless be subject to the protection afforded by this Protective Order for three (3) full working days, unless otherwise ordered, from the date the party asserting confidentiality receives notice of the presiding officer's order. Such notification will be by written communication. This provision establishes a deadline for appeal of a presiding officer's order to the Commission. In the event an appeal to the Commissioners is filed within those three (3) working days from notice, the Protected Materials shall be afforded the confidential treatment and status provided in this Protective Order during the pendency of such appeal. Neither the party asserting confidentiality nor any Reviewing Parry waives its right to seek additional administrative or judicial remedies after the Commission's denial of any appeal. 25 Docket No. Protective Order Page 11 of 17 25. Notice of Intent to Use Protected Materials or Change Materials Designation. Parties intending to use Protected Materials shall notify the other parties prior to offering them into evidence or otherwise disclosing such information into the record of the proceeding. During the pendency of Docket No. at the commission, in the evens that a Reviewing Party wishes to disclose Protected Materials to any person to whom disclosure is not authorized by this Protective Order, or wishes to have changed the designation of certain information or material as Protected Materials by alleging, for example, that such information or material has entered the public domain, such Reviewing Parry shall first file and serve on all parties written notice of such proposed disclosure or request for change in designation, identifying with particularity each of such Protected Materials. A Reviewing Party shall at any time be able to file a written motion to challenge the designation of information as Protected Materials. 26. Procedures to Contest Disclosure or Change in Designation. In the event that the party asserting confidentiality wishes to contest a proposed disclosure or request for change in designation, the party asserting confidentiality shall file with the appropriate presiding officer its objection to a proposal, with supporting affidavits, if any, within five (5) working days after receiving such notice of proposed disclosure or change in designation. Failure of the party asserting confidentiality to file such an objection within this period shall be deemed a waiver of objection to the proposed disclosure or request for change in designation. Within five (5) working days after the party asserting confidentiality files its objection and supporting materials, the party challenging confidentiality may respond. Any such response shall include a statement by counsel for the party challenging such confidentiality that he or she has reviewed all portions of the materials in dispute and, without disclosing the Protected Materials, a statement as to why the Protected Materials should not be held to be confidential under current legal standards, or that the parry asserting confidentiality for some reason did not allow such counsel to review such materials. If either party wishes to submit the material in question for in camera inspection, it shall do so no later than five (5) working days after the party challenging confidentiality has made its written filing. 26 Docket No. Protective Order Page 12 of 17 27. Procedures for Presiding Officer Determination Regarding Proposed_ Disclosure or Change in Designation. If the party asserting confidentiality files an objection, the appropriate presiding officer will determine whether the proposed disclosure or change in designation is appropriate. Upon the request of either the producing or Reviewing Party or upon the presiding officer's own initiative, the presiding officer may conduct a prehearing conference. The burden is on the party asserting confidentiality to show that such proposed disclosure or change in designation should not be made. If the presiding officer determines that such proposed disclosure or change in designation should be made, disclosure shall not take place earlier than three (3) full working days after such determination unless otherwise ordered. No party waives any right to seek additional administrative or judicial remedies concerning such presiding officer's ruling. 28. Maintenance of Protected Status during Periods Specified for Challenging Various Orders. Any party electing to challenge, in the courts of this state, a Commission or presiding officer determination allowing disclosure or a change in designation shall have a period of ten (10) days from: (a) the date of an unfavorable Commission order; or (b) if the Commission does not rule on an appeal of an interim order, the date an appeal of an interim order to the Commission is overruled by operation of law, to obtain a favorable ruling in state district court. Any party challenging a state district court determination allowing disclosure or a change in designation shall have an additional period of ten (10) days from the date of the order to obtain a favorable ruling from a state appeals court. Finally, any party challenging a determination of a state appeals court allowing disclosure or a change in designation shall have an additional period of ten (10) days from the date of the order to obtain a favorable ruling from the state supreme court, or other appellate court. All Protected Materials shall be afforded the confidential treatment and status provided for in this Protective Order during the periods for challenging the various orders referenced in this paragraph. For purposes of this paragraph, a favorable ruling of a state district court, state appeals court, Supreme Court or other appellate court includes any order extending the deadlines in this paragraph. 27 Docket No. Protective Order Page 13 of 17 29. Other Grounds for Objection to Use of Protected Materials Remain Applicable. Nothing in this Protective Order shall be construed as precluding any party from objecting to the use of Protected Materials on grounds other than confidentiality, including the lack of required relevance. Nothing in this Protective Order constitutes a waiver of the right to argue for more disclosure, provided, however, that unless the Commission or a court orders such additional disclosure, all parties will abide by the restrictions imposed by the Protective Order. 30. Protection of Materials from Unauthorized Disclosure. All notices, applications, responses or other correspondence shall be made in a manner which protects Protected Materials from unauthorized disclosure. 31. Return of Copies of Protected Materials and Destruction of Information Derived from Protected Materials. Following the conclusion of these proceedings, each Reviewing Party must, no later than thirty (30) days following receipt of the notice described below, return to the party asserting confidentiality all copies of the Protected Materials provided by that parry pursuant to this Protective Order and all copies reproduced by a Reviewing Party, and counsel for each Reviewing Party must provide to the parry asserting confidentiality a letter by counsel that, to the best of his or her knowledge, information, and belief, all copies of notes, memoranda, and other documents regarding or derived from the Protected Materials (including copies of Protected Materials) that have not been so returned, if any, have been destroyed, other than notes, memoranda, or other documents which contain information in a form which, if made public, would not cause disclosure of the substance of Protected Materials. As used in this Protective Order, "conclusion of these proceedings" refers to the exhaustion of available appeals, or the running of the time for the making of such appeals, as provided by applicable law. If, following any appeal, the Commission conducts a remand proceeding, then the "conclusion of these proceedings" is extended by the remand to the exhaustion of available appeals of the remand, or the running of the time for making such appeals of the remand, as provided by applicable law. Promptly following the conclusion of these proceedings, counsel for the party asserting confidentiality will send a written 28 Docket No. Protective Order Page 14 of 17 notice to all other parties, reminding them of their obligations under this Paragraph. Nothing in this Paragraph shall prohibit counsel for each Reviewing Party from retaining two (2) copies of any filed testimony, brief, application for rehearing, hearing exhibit or other pleading which refers to Protected Materials provided that any such Protected Materials retained by counsel shall remain subject to the provisions of this Protective Order. 32. Applicability of Other Law. This Protective Order is subject to the requirements of the Public Information Act, the Open Meetings Act,3 the Texas Securities Act4 and any other applicable law, provided that parties subject to those acts will notify the party asserting confidentiality, if possible under those acts, prior to disclosure pursuant to those acts. Such notice shall not be required where the Protected Materials are sought by governmental officials authorized to conduct a criminal or civil investigation that relates to or involves the Protected Materials, and those governmental officials aver in writing that such notice could compromise the investigation and that the governmental entity involved will maintain the confidentiality. of the Protected Materials. 33. Procedures for Release of Information under Order. If required by order of a governmental or judicial body, the Reviewing Parry may release to such body the confidential information required by such order; provided, however, that: (a) the Reviewing Party shall notify the producing party of the order requiring the release of such information within five (5) calendar days of the date the Reviewing Parry has notice of the order; (b) the Reviewing Party shall notify the producing party at least five (5) calendar days in advance of the release of the information to allow the producing party to contest any release of the confidential information; and (c) the Reviewing Parry shall use its best efforts to prevent such materials from being disclosed to the public. The terms of this Protective Order do not preclude the Reviewing Parry from complying with any valid and enforceable order of a state or federal court with competent jurisdiction specifically requiring disclosure of Protected Materials earlier than contemplated herein. The notice s TEX. GOV'T CODE ANN. § 551.001-551.146 (West 2017). 4 TEX. REv. Civ. STAT. ANN. arts. 581-1 to 581-43 (West 2010 & Supp. 2016). 29 Docket No. Protective Order Page 15 of 17 specified in this section shall not be required where the Protected Materials are sought by governmental officials authorized to conduct a criminal or civil investigation that relates to or involves the Protected Materials, and those governmental officials aver in writing that such notice could compromise the investigation and that the governmental entity involved will maintain the confidentiality of the Protected Materials. 34. Best Efforts Defined. The term "best efforts" as used in the preceding paragraph requires that the Reviewing Party attempt to ensure that disclosure is not made unless .such disclosure is pursuant to a final order of a Texas governmental or Texas judicial body, the written opinion of the Texas Attorney General sought in compliance with the Public Information Act, or the request of governmental officials authorized to conduct a criminal or civil investigation that relates to or involves the Protected Materials. The Reviewing Party is not required to delay compliance with a lawful order to disclose such information but is simply required to timely notify the party asserting confidentiality, or its counsel, that it has received a challenge to the confidentiality of the information and that the Reviewing Parry will either proceed under the provisions of §552.301 of the Public Information Act, or intends to comply with the final governmental or court order. Provided, however, that no notice is required where the Protected Materials are sought by governmental officials authorized to conduct a criminal or civil investigation that relates to or involves the Protected Materials, and those governmental officials aver in writing that such notice could compromise the investigation and that the governmental entity involved will maintain the confidentiality of the Protected Materials. 35. Notify Defined. "Notify" for purposes of Paragraphs 32, 33 and 34 means written notice to the party asserting confidentiality at least five (5) calendar days prior to release; including when a Reviewing Parry receives a request under the Public Information Act. However, the Commission, OAG, or OPC may provide a copy of Protected Materials to the Open Records Division of the OAG as provided herein. 36. Requests for Non -Disclosure. If the producing party asserts that the requested information should not be disclosed at all, or should not be disclosed to certain parties under the protection afforded by this Protective Order, the producing party shall tender 30 Docket No. Protective Order Page 16 of 17 the information for in camera review to the presiding officer within ten (10) calendar days of the request. At the same time, the producing party shall file and serve on all parties its argument, including any supporting affidavits, in support of its position of non- disclosure. The burden is on the producing party to establish that the material should not be disclosed. The producing party shall serve a copy of the information under the classification of Highly Sensitive Protected Material to all parties requesting the information that the producing party has not alleged should be prohibited from reviewing the information. Parties wishing to respond to the producing party's argument for non -disclosure shall do so within five working days. Responding parties should explain why the information should be disclosed to them, including why disclosure is necessary for a fair adjudication of the case if the material is determined to constitute a trade secret. If the presiding officer finds that the information should be disclosed as Protected Material under the terms of this Protective Order, the presiding officer shall stay the order of disclosure for such period of time as the presiding officer deems necessary to allow the producing party to appeal the ruling to the Commission. 37. Sanctions Available for Abuse of Designation. If the presiding officer finds that a producing party unreasonably designated material as Protected Material or as Highly Sensitive Protected Material, or unreasonably attempted to prevent disclosure pursuant to Paragraph 36, the presiding officer may sanction the producing party pursuant to P.U.C. PRoc. R. 22.161. 38. Modification of Protective Order. Each party shall have the right to seek changes in this Protective Order as appropriate from the presiding officer. 39. Breach of Protective Order. In the event of a breach of the provisions of this Protective Order, the producing party, if it sustains its burden of proof required to establish the right to injunctive relief, shall be entitled to an injunction against such breach without any requirements to post bond as a condition of such relief. The producing party shall not be relieved of proof of any element required to establish the right to injunctive relief. In 31 Docket No. Protective Order Page 17 of 17 addition to injunctive relief, the producing party shall be entitled to pursue any other form of relief to which it is entitled. 32 ATTACHMENT A Protective Order Certification I certify my understanding that the Protected Materials are provided to me pursuant to the terms and restrictions of the Protective Order in this docket and that I have received a copy of it and have read the Protective Order and agree to be bound by it. I understand that the contents of the Protected Materials, any notes, memoranda, or any other form of information regarding or derived from the Protected Materials shall not be disclosed to anyone other than in accordance with the Protective Order and unless I am an employee of the Commission or OPC shall be used only for the purpose of the proceeding in Docket No. . I acknowledge that the obligations imposed by this certification are pursuant to such Protective Order. Provided, however, if the information contained in the Protected Materials is obtained from independent public sources, the understanding stated here shall not apply. Signature Printed Name Party Represented Date I certify that I am eligible to have access to Highly Sensitive Protected Material under the terms of the Protective Order in this docket. Signature Printed Name Party Represented Date 33 ATTACHMENT B I request to view/copy the following documents: Protected Materials and/or Highly Document Requested # of Copies Non -Confidential Sensitive Protected Materials Signature Printed Name Party Represented Date 34 INDEX TO THE DIRECT TESTIMONY OF J. MICHAEL SHERBURNE, WITNESS FOR ONCOR ELECTRIC DELIVERY COMPANY LLC I. POSITION AND QUALIFICATIONS.......................................................... 4 II. PURPOSE OF DIRECT TESTIMONY....................................................... 6 III. PROPOSED REVISIONS IN RETAIL DELIVERY SERVICE RATES AND WHOLESALE DISTRIBUTION RATES ............................................. 8 A. Changes to the Functionalized Revenue Requirement Related toTCJA and Excess ADFIT............................................................... 8 B. Allocation of the Functionalized Revenue Requirement to the Individual Rate Classes................................................................... 10 C. Calculation of Rate Changes for TCJA and Excess ADFIT ............. 11 D. Summary of Proposed Rates for TCJA and Excess ADFIT Effects............................................................................................. 12 IV. PROPOSED REVISIONS TO ONCOR'S NETWORK TRANSMISSION RATES ASSOCIATED WITH EXCESS ADFIT EFFECTS...............................................................................................13 V. REFUNDS RELATED TO THE BILLING OF NTS RATES FROM JANUARY 1, 2018 THROUGH MARCH 26, 2018................................... 14 VI. REFUNDS RELATED TO THE BILLING OF CURRENT RETAIL AND WHOLESALE DISTRIBUTION RATES IN 2018 ............................. 14 VII. REVISIONS TO RIDER RS — REMAND SURCHARGE AND RIDER WRS — WHOLESALE REMAND SURCHARGE .......................... 18 Vill. CONCLUSION.........................................................................................19 IX. AFFIDAVIT.............................................................................................. 21 X. EXHIBITS...............................................................................................22 EXHIBIT JMS-1 List of J. Michael Sherburne's Prior Commission Sherburne Direct Oncor Electric Delivery FIT -Related Rate Reduction -1- W, Testimony EXHIBIT JMS-2 Adjustment for Change To Final Order (Tax Rate 35%) for TCJA and EXDFIT EXHIBIT JMS-3 Allocation of Functionalized Revenue Requirements EXHIBIT JMS-4 Calculation of Changes in Rates Due to TCJA and EXDFIT EXHIBIT JMS-5 Summary of Proposed Rates due to TCJA and EXDFIT EXHIBIT JMS-6 Tariff for Retail Delivery Service, Oncor Electric Delivery Company LLC - Excerpts EXHIBIT JMS-7 Tariff for Transmission Service, Oncor Electric Delivery Company LLC - Excerpts EXHIBIT JMS-8 Interim Update of Wholesale Transmission Cost of Service EXHIBIT JMS-9 Interim Update of Wholesale Transmission Cost of Service - Updated TCOS Baseline Schedules EXHIBIT JMS-10 Calculations of TCOS-Related Credit for Change in FIT Rate from 35% to 21 % for the Period of January 1, 2018 through March 26, 2018 EXHIBIT JMS-11 Adjustment for Final Order (Tax Rate 35%) for TCJA and Excluding EXDFIT EXHIBIT JMS-12 Allocation of Functionalized Revenue Requirements Due to 21 % Tax Rate Sherburne Direct Oncor Electric Delivery FIT -Related Rate Reduction -2- 36 EXHIBIT JMS-13 Calculation of Changes in Rates Due to 21 % Tax Rate EXHIBIT JMS-14 November 2018 Billing Units EXHIBIT JMS-15 Rider TRF and Rider WTRF — Proposed Form of Tariffs Sherburne uirect Oncor Electric Delivery FIT -Related Rate Reduction -3- 37 DIRECT TESTIMONY OF J. MICHAEL SHERBURNE 1 I. POSITION AND QUALIFICATIONS 2 Q. PLEASE STATE YOUR NAME, BUSINESS ADDRESS, AND CURRENT 3 EMPLOYMENT POSITION. 4 A. My name is J. Michael Sherburne. My business address is 1616 Woodall 5 Rodgers Freeway, Dallas, Texas 75202. 1 am the Senior Director - Rates 6 and Financial Analysis for Oncor Electric Delivery Company LLC ("Oncor' 7 or "Company"). 8 Q. PLEASE DISCUSS YOUR EDUCATIONAL BACKGROUND AND 9 PROFESSIONAL QUALIFICATIONS. 10 A. I graduated from Louisiana State University in December 1979 with a 11 Bachelor of Science degree in Electrical Engineering. In August 1989, 1 12 received the degree of Master of Business Administration from the 13 University of Dallas. I began employment with Dallas Power & Light 14 Company ("DP&L") in June 1980 as an Engineer, Jr. in the Research and 15 Development Section of the Distribution Department where I was 16 responsible for testing and evaluating new equipment and technologies for 17 application on the distribution system and analyzing the root cause for 18 equipment failures on the distribution system. In June 1984, 1 was named 19 Section Head - Overhead and Underground Operations in the DP&L 20 Distribution Department. In that role, I was responsible for a group of 21 distribution operation technicians that located underground cable faults, 22 transformer overloads, and arranged for clearances (planned outages) in 23 the downtown Dallas network and surrounding areas that enabled the 24 Company and customers to perform necessary maintenance and/or add 25 additional load to the system. In April 1986, 1 was named Senior Engineer 26 in the DP&L Distribution Design Division of the Engineering Department 27 where, among other things, I worked to standardize the line extension 28 policy for the three electric operation divisions of Texas Utilities Electric 29 Company and began working on a remote meter reading system for a high Sherburne Direct Oncor Electric Delivery FIT -Related Rate Reduction -4- 38 1 rise apartment complex in Dallas. In December 1987, 1 was named 2 Manager, Facilities Management for DP&L and became responsible for 3 the construction, operation, and maintenance of DP&L office facilities. 1 4 continued that responsibility until February 1991, when I was named to the 5 position of Rates and Cost Analysis Manager for Texas Utilities Electric 6 Company. In that role, I had responsibility for interpreting and 7 administering the Company's Tariff for Electric Service, determining the 8 appropriate rate class cost allocation methodology for the Company's rate 9 class cost of service, and reviewing and participating in rulemakings at the 10 Public Utility Commission of Texas ("Commission"). In May 1999, 1 was 11 named Electric Rates Manager - TXU Business Services and became the 12 Company's advocate in virtually all of the rulemakings associated with the 13 opening of the retail electricity market in the Electric Reliability Council of 14 Texas. I participated in countless workshops dealing with the unbundling 15 rules, especially the creation of the Pro Forma Tariff for Retail Delivery 16 Service (Commission Substantive Rule 25.241). Subsequent to the 17 opening of the retail market in Texas, I continued to represent the 18 Company in rate and regulatory proceedings at the Commission. In 19 February 2008, 1 was named Director — Rates and Retail Regulation for 20 Oncor, and in April, 2009, 1 was named to my current position of Senior 21 Director — Rates & Financial Analysis for Oncor. 22 1 am a registered Professional Engineer in the State of Texas, a 23 member of the Institute of Electrical and Electronics Engineers, and a past 24 Vice Chairman and Chairman of the Rates and Regulatory Affairs 25 Committee of the Edison Electric Institute. 26 Q. HAVE YOU PREVIOUSLY PROVIDED TESTIMONY BEFORE THE 27 COMMISSION? 28 A. Yes. See my Exhibit JMS-1 for a list of the Commission proceedings in 29 which I have provided testimony. Sherburne Direct Oncor Electric Delivery FIT -Related Rate Reduction -5- 39 1 II. PURPOSE OF DIRECT TESTIMONY 2 Q. WHAT IS THE PURPOSE OF YOUR DIRECT TESTIMONY IN THIS 3 PROCEEDING? 4 A. As a result of the Tax Cut and Jobs Act of 2017 ("TCJA"), the Company's 5 federal income tax ("FIT") rate was reduced from 35% to 21 % and this FIT 6 rate also created a reduction in FIT expense related to the increased 7 amortization of excess accumulated deferred federal income taxes 8 ("ADFIT").' The effective date of these changes was January 1, 2018. 9 Based on Finding of Fact No. 27 and Ordering Paragraph No. 3 of the 10 Order in Docket No. 46957,2 the Company is required to reduce its rates 11 based on the lower tax expense and to refund monies collected through its 12 current rates from January 1 until the effective date of the new rates I am 13 proposing in this proceeding. Thus the purpose of my direct testimony is 14 to: 15 calculate the rate revisions for each retail delivery service rate 16 class based on the reduction in the Company's FIT rate to 21 % 17 under the TCJA and the reduction in FIT expense related to the 18 excess ADFIT effects created by the lower FIT rate; 19 calculate the rate revisions for the Wholesale Substation 20 Service and the Wholesale Distribution Line Service rate 21 classes based on the TCJA and the excess ADFIT effects; 22 • sponsor revisions to Oncor's Tariff for Retail Delivery Service 23 associated with the TCJA and the excess ADFIT effects; 24 sponsor revisions to Oncor's Tariffs for Wholesale Substation 25 Service and Wholesale Distribution Line Service associated with 26 the TCJA and the excess ADFIT effects; Refer to the direct testimony of Company witness Ms. Bonnie L. Clutter for a detailed explanation of the effects of the TCJA on the Company's amortization of excess ADFIT. 2 Application of Oncor Electric Delivery Company LLC for Authority to Change Rates, Docket No. 46957, Order (Oct. 13, 2017). Sherburne Direct Oncor Electric Delivery FIT -Related Rate Reduction -6- 40 1 • support revisions to Oncor's Network Transmission Service 2 ("NTS") Tariff associated with the excess ADFIT effects to be 3 approved by and to take effect on July 1, 2018;3 4 • calculate the amount to be refunded to transmission and 5 distribution utilities served under the Company's NTS Tariff 6 associated with the FIT rate change for the period from January 7 1, 2018 through March 26, 2018, and determine the amount and 8 duration of the associated monthly bill credits; 9 sponsor the proposed Rider WTRF-N — Wholesale Tax Refund 10 Factor (NTS) showing the refund to transmission and 11 distribution utilities served under the Company's NTS Tariff; 12 propose a true -up mechanism to be used to refund amounts 13 collected under the current rates between January 1, 2018 and 14 the effective date of the tariff changes described above and 15 propose the form of the tariff riders to be used to effect these 16 refunds (proposed Rider TRF and Rider WTRF); and 17 calculate revised surcharge amounts for Rider RS — Remand 18 Surcharge and Rider WRS — Wholesale Remand Surcharge to 19 reflect the 21 % FIT rate. 20 My direct testimony, exhibits, and workpapers were prepared by me 21 or under my direction, supervision, or control, and are true and correct. 3 The effects of the 21% FIT rate were previously incorporated in the Company's Rate NTS — Network Transmission Service effective March 27, 2018, in accordance with the Notice of Approval in the Company's most recent interim transmission cost of service ("TCOS") update — Application of Oncor Electric Delivery LLC for Interim Update of Wholesale Transmission Rates, Docket No. 47988, Notice of Approval (Mar. 27, 2018). Sherburne Direct Oncor Electric Delivery FIT -Related Rate Reduction -7- 41 1 III. PROPOSED REVISIONS IN RETAIL DELIVERY SERVICE 2 RATES AND WHOLESALE DISTRIBUTION RATES 3 Q. PLEASE DESCRIBE THE PROCESS YOU USED TO CALCULATE THE 4 PROPOSED RATE REVISIONS FOR THE COMPANY'S RETAIL 5 DELIVERY SERVICE RATES, WHOLESALE SUBSTATION SERVICE 6 RATE, AND WHOLESALE DISTRIBUTION LINE SERVICE RATE. 7 A. I used a multi -step process to calculate the rate revisions. The results of 8 this process are presented in my Exhibits JMS-2 through JMS-5, which 1 9 will describe in detail below. 10 A. Changes to the Functionalized Revenue Requirement Related to 11 TCJA and Excess ADFIT 12 Q. HOW DID YOU DETERMINE THE CHANGES TO THE COMPANY'S 13 FUNCTIONALIZED REVENUE REQUIREMENT AS A RESULT OF THE 14 TCJA AND THE EXCESS ADFIT EFFECTS? 15 A. My Exhibit JMS-2 entitled "Adjustment for Change To Final Order (Tax 16 Rate 35%) for TCJA and EXDFIT" 4 shows the functionalized Revenue 17 Requirements for the Return on Rate Base and the major expense 18 categories (e.g., Depreciation) for two separate scenarios — one 19 designated "Final Order" 5 that is based on an FIT rate of 35%, and 20 another designated "TCJA and EXDFIT" that applies the effects of the 21 TCJA and excess ADFIT impacts. To determine the impacts of the TCJA 22 and excess ADFIT effects on the Customer, Meter, and Distribution 23 Functions, I compared the results of the second scenario (shown under 24 the heading "TCJA and EXDFIT") to the first scenario (shown under the 25 heading "Final Order"). This comparison is shown on the lower portion of 26 Exhibit JMS-2 under the heading "Difference between TCJA/EXDFIT and 27 Final Order." 4 On my exhibits, I use the term "EXDFIT" to mean "excess ADFIT." 5 This designation applies to the Order in Docket No. 46957. Sherburne Direct Oncor Electric Delivery FIT -Related Rate Reduction sm 42 1 Q. CAN YOU PROVIDE AN EXAMPLE OF THE COMPARISON YOU 2 DISCUSSED ABOVE THAT APPEARS ON EXHIBIT JMS-2? 3 A. Yes. I will use the Revenue Requirement for the "Meter" function to 4 illustrate. In the first scenario, the total revenue requirement for the Meter 5 function is $279,495,004 (refer to column (c), Line No. 13), while in the 6 second scenario, the total revenue requirement for the Meter function is 7 $275,782,243 (refer to column (c), Line No. 37). The difference in these 8 two values, shown under the heading "Difference between TCJA/EXDFIT 9 and Final Order," is ($3,712,761) (refer to column (c), Line No. 61). This 10 value represents the reduction in the revenue requirement for the Meter 11 function that I will later allocate to the individual rate classes in order to 12 calculate the appropriate reduction in the Meter Charge for the individual 13 rates. 14 Q. HOW DID YOU DETERMINE THE FUNCTIONALIZED VALUES FOR 15 RETURN ON RATE BASE AND THE EXPENSE CATEGORIES IN THE 16 TWO SCENARIOS DESCRIBED ABOVE? 17 A. The values in the first scenario (shown under the heading "Final Order" in 18 Exhibit JMS-2) are the bases for the values used to design the Company's 19 current retail delivery service and wholesale distribution rates. The 20 Commission approved these rates in Oncor's most recent base -rate case, 21 Docket No. 46957. 1 am including the detailed calculations supporting 22 these values as my Workpaper JMS/WP-1. 23 The values in the second scenario (shown under the heading 24 "TCJA and EXDFIT" in Exhibit JMS-2) were determined by re -running the 25 Company's cost -of -service model used in Docket No. 46957 to incorporate 26 the changes in Rate Base and in the other expense categories that result 27 directly from the TCJA and the excess ADFIT effects. These effects are 28 described in the direct testimony of Company witness Ms. Bonnie L. 29 Clutter. It is important to note that the changes described by Ms. Clutter 30 do not affect the operation of the cost -of -service model used in Docket No. Sherburne Direct Oncor Electric Delivery FIT -Related Rate Reduction -9- 43 1 46957. The model appropriately reflects the revised accounting data. I am 2 including the detailed calculations from the Company's cost -of -service 3 model supporting the values in the second scenario as my Workpaper 4 JMS/WP-2. 5 Q. WHAT IS THE NEXT STEP IN THE PROCESS? 6 A. The next step in the process is to allocate the Revenue Requirements 7 shown on Exhibit JMS-2 to the Retail and Wholesale Distribution Rate 8 Classes. This step is described below. 9 B. Allocation of the Functionalized Revenue Requirement to the 10 Individual Rate Classes 11 Q. HOW DID YOU ALLOCATE THE REVENUE REQUIREMENT SHOWN IN 12 EXHIBIT JMS-2 TO THE COMPANY'S RETAIL AND WHOLESALE 13 DISTRIBUTION RATE CLASSES? 14 A. Exhibit JMS-3, entitled "Allocation of Functionalized Revenue 15 Requirements," shows how the functionalized Revenue Requirements 16 shown in Exhibit JMS-2 are allocated to the individual rate classes. The 17 values appearing in column (b) entitled "Final Order" are the bases used 18 to design the Company's current retail and wholesale distribution rates. 19 The detailed calculations supporting these values are also included in my 20 Workpaper JMS/WP-1. Similarly, the values appearing in column (c) 21 entitled "TCJA & EXDFIT" reflecting the changes resulting from the TCJA 22 and the excess ADFIT effects were determined using the same cost-of- 23 service model that was used to produce Exhibit JMS-2, included as my 24 Workpaper JMS/WP-2. 25 Q. CAN YOU PROVIDE AN EXAMPLE OF THE RATE CLASS 26 ALLOCATION PROCESS THAT APPEARS ON EXHIBIT JMS-3? 27 A. Yes. I will again use the Revenue Requirement for the "Mete►" function — 28 referred to as the "Meter Cost Allocation" — to illustrate. Line No. 29, 29 column (b) shows the same total Revenue Requirement Amount of 30 $279,495,004 for the "Final Order" that appears on Exhibit JMS-2 (Line Sherburne Direct Oncor Electric Delivery FIT -Related Rate Reduction -10- 44 1 No. 13, column (c)). In the rate class allocation process, this total is 2 spread to the individual rate classes, and the results are shown in Line 3 Nos. 19-28. Column (c) of Exhibit JMS-3 shows a similar allocation of the 4 revised costs reflecting the TCJA and excess ADFIT effects based on the 5 rate class allocation process to the individual rate classes, and column (d) 6 entitled "Change in Revenue Requirement" shows the difference between 7 columns (b) and (c). Similar results of the allocation process for the 8 Customer Function are shown in Line Nos. 1-13, under the heading 9 "Customer Cost Allocation" and for the Distribution Function in Line Nos. 10 31-43 under the heading "Distribution System Cost Allocation." 11 The values in column (d) show the changes in the revenue 12 requirement for each rate class for the Customer, Meter, and Distribution 13 functions. These changes form the basis for the rate changes related to 14 TCJA and excess ADFIT, the calculation of which is the next step in the 15 process. 16 C. Calculation of Rate Changes for TCJA and Excess ADFIT 17 Q. HOW DID YOU CALCULATE THE RATE CHANGE AMOUNTS FOR 18 EACH RETAIL AND WHOLESALE DISTRIBUTION RATE CLASS 19 SHOWN IN EXHIBIT JMS-4? 20 A. Page 1 of Exhibit JMS-4, entitled "Calculation of Changes in Rates Due to 21 TCJA and EXDFIT," shows these calculations for each rate class and 22 function. The results of these calculations are shown in column (d). The 23 rate changes due to TCJA and the excess ADFIT impacts are calculated 24 by dividing the change in the Revenue Requirement (shown in column (b)) 25 by the appropriate number of billing units (shown in column (c)). The 26 billing units are the same as those approved in the Order in Docket No. 27 46957.E 6 Refer to Attachment 4, page 16 to the Joint Motion to Admit Affidavit of Notice, Stipulation, and Supporting Testimony in Evidence; and Remand to the Commission for Review and Approval of Stipulation, Proposed Final Order, and Tariffs in Docket No. 46957, dated August Sherburne Direct Oncor Electric Delivery FIT -Related Rate Reduction -11- 45 1 Q. CAN YOU PROVIDE AN EXAMPLE OF THE RATE CHANGE 2 CALCULATIONS THAT APPEAR ON EXHIBIT JMS-4? 3 A. Yes. For this example, I will use the Distribution System Cost for the 4 Residential Rate Class to illustrate. Line No. 35, column (b) shows the 5 same Change in Revenue Requirement of ($46,536,696) for the 6 Residential Distribution System Charge that is shown in Line No. 34, 7 column (d) of Exhibit JMS-3. By dividing this amount by the annual kWh 8 sales for the residential rate class of 43,407,410,468, as shown in Line 9 No. 35, column (c)7 on page 1 of Exhibit JMS-4, the resulting change in 10 the Distribution System Charge for the Residential rate class is 11 ($0.001072), which represents a decrease of $0.001072/kWh. As shown 12 on page 1 of my Exhibit JMS-5 (discussed in more detail below), the 13 proposed monthly rate for the Residential Distribution System Charge is 14 reduced from the current value of $0.021141/kWh to $0.020069/kWh (see 15 Line No. 37, columns (b)-(d) of Exhibit JMS-5). 16 D. Summary of Proposed Rates for TCJA and Excess ADFIT Effects 17 Q. HAVE YOU PREPARED A SUMMARY OF ALL OF THE RATE 18 CHANGES ASSOCIATED WITH TCJA AND EXCESS ADFIT EFFECTS 19 FOR EACH RETAIL AND WHOLESALE DISTRIBUTION RATE CLASS? 20 A. Yes. My Exhibit JMS-5 shows these calculations for each rate class for 21 the Customer Charge, Meter Charge, and Distribution System Charge. In 22 addition, page 2 of Exhibit JMS-5 shows the calculations for the rate 23 changes associated with the Distribution System Charge for certain low- 24 load factor customers served under the Company's Secondary Service 25 Greater Than 10 kW rate, and all of the rate changes for the Company's 26 Lighting Service tariff are shown in my Workpaper JMS/WP-3. All of the 27 proposed rates shown in Exhibit JMS-5 will be incorporated in the 2, 2017. This document is included in my Exhibit JMS-4, page 3. The number of billing units for the various rate classes for the test -year ending December 31, 2016, is shown on my Exhibit JMS-4, page 3. Sherburne Direct Oncor Electric Delivery FIT -Related Rate Reduction 5 PR 46 1 proposed revisions to the Company's Tariff for Retail Delivery Service or 2 Tariff for Transmission Service as shown in my Exhibits JMS-6 and JMS- 3 7, respectively. 4 IV. PROPOSED REVISIONS TO ONCOR'S NETWORK TRANSMISSION 5 RATES ASSOCIATED WITH EXCESS ADFIT EFFECTS 6 Q. HAVE YOU CALCULATED A REVISED WHOLESALE TRANSMISSION 7 RATE FOR THE EFFECTS OF THE TCJA RELATED TO EXCESS 8 ADFIT? 9 A. Yes. Page 1 of my Exhibit JMS-8 shows Oncor's TCOS revenue 10 requirement (Schedule A) from its recently approved Docket No. 47988 11 interim TCOS case, and page 2 shows Oncor's TCOS revenue 12 requirement (Schedule A) restated for the effects of the TCJA related to 13 excess ADFIT. Page 3 provides a comparison summarizing the 14 differences of these two schedules. I am proposing a reduction in Oncor's 15 TCOS revenue requirement from $881,411,373 to $866,436,040, which 16 represents a reduction of $14,975,333. 1 have prepared a proposed 17 revision to Oncor's Rate NTS — Network Transmission Service, showing a 18 reduction in the rate from $13,101.988139/MW (effective March 27, 2018 19 in Docket No. 47988) to $12,879.383079/MW. This proposed rate is 20 included in Exhibit JMS-7. 21 1 am requesting that the new baseline be approved by July 1, 2018 22 for use in the Company's next interim TCOS filing. Thus, Oncor is 23 requesting that: (i) this proposed NTS rate be approved effective July 1, 24 2018, (ii) that this rate reduction not be counted as one of Oncor's two 25 annual allowable interim TCOS rate updates, and (iii) that the updated 26 TCOS revenue requirement consistent with this reduction be incorporated 27 into the baseline data to be used in Oncor's next interim TCOS rate 28 update application. My Exhibit JMS-9 is the updated TCOS baseline 29 schedules that incorporate the previously described TCOS revenue 30 requirement reduction and the resulting TCOS rate reduction. Sherburne Direct Oncor Electric Delivery FIT -Related Rate Reduction -13- 47 1 V. REFUNDS RELATED TO THE BILLING OF NTS RATES FROM 2 JANUARY 1, 2018 THROUGH MARCH 26, 2018 3 Q. HAVE YOU CALCULATED AND PROPOSED A REFUND RELATED TO 4 THE BILLING OF NTS RATES COVERING THE PERIOD OF JANUARY 5 1 THROUGH MARCH 26, 2018, BASED ON THE TCJA FIT RATE 6 CHANGE? 7 A. Yes, please see my Exhibit JMS-10. Oncor's recent interim TCOS rate 8 update in Docket No. 47988 resulted in a new Rate NTS with an effective 9 date of March 27, 2018. This rate incorporates the effect of the TCJA's 10 FIT rate reduction from 35% to 21 %. In order to provide Rate NTS 11 customers with the benefits of the tax rate reduction beginning January 1, 12 2018, 1 have calculated a credit of $12,219,430, which covers the period of 13 January 1, 2018 through March 26, 2018. Oncor is proposing Rider 14 WTRF-N — Wholesale Tax Refund Factor (NTS) to be effective July 1, 15 2018, with a refund period of one month. This proposed rider is included 16 in my Exhibit JMS-7. 17 VI. REFUNDS RELATED TO THE BILLING OF CURRENT RETAIL AND 18 WHOLESALE DISTRIBUTION RATES IN 2018 19 Q. HOW DO YOU PROPOSE TO TREAT THE DIFFERENCES BETWEEN 20 THE REVENUE RECEIVED IN 2018 UNDER CURRENT RETAIL AND 21 WHOLESALE DISTRIBUTION RATES AND THE RATES ULTIMATELY 22 APPROVED IN THIS PROCEEDING DURING THE PERIOD FROM 23 JANUARY 1, 2018, THROUGH THE EFFECTIVE DATE OF THE NEW 24 RATES? 25 A. I propose to refund the differences in revenue for each retail and 26 wholesale distribution rate class through a compliance filing that Oncor 27 would submit within 30 days after the implementation of the revised rates 28 approved in this case. This would allow the Company to calculate the 29 exact amounts due to be refunded, thus streamlining the entire refund 30 process. It should be noted that the FIT rate change associated with the Sherburne Direct Oncor Electric Delivery FIT -Related Rate Reduction -14- 48 1 TCJA would be the only change reflected in the compliance filing; as 2 described by Ms. Clutter, there are no excess ADFIT effects associated 3 with the tax refund calculations. As described below, the tax refund 4 factors are proposed to be in effect for one month beginning November 1, 5 2018, in order to have all of the effects of the TCJA reflected on the 6 Company's books during 2018 business. 7 I propose two new tariffs to effect these refunds: a "Rider TRF — 8 Tax Refund Factor' to be included in the Company's Tariff for Retail 9 Delivery Service (to be applicable to all retail rate classes) and a "Rider 10 WTRF (XFMR & DLS)" to be included in the Company's Tariff for 11 Transmission Service (to be applicable to Rate XFMR — Wholesale 12 Substation Service and Rate DLS — Wholesale Distribution Line Service). 13 Q. HOW DO YOU PROPOSE TO CALCULATE THE ACTUAL TAX REFUND 14 AMOUNTS FOR EACH RATE CLASS FOR THE PERIOD FROM 15 JANUARY 1, 2018, THROUGH THE EFFECTIVE DATE OF THE NEW 16 RATES TO BE APPROVED IN THIS PROCEEDING? 17 A. The calculation of the actual tax refund amounts utilizes a two-step 18 process. The first step is to calculate the changes in the Customer, Meter, 19 and Distribution System Charges for each retail delivery service and 20 wholesale distribution service rate class resulting from a 21 % FIT rate. 21 This calculation uses the same multi -step process described in Section III, 22 above; except that only the effects of the FIT rate reduction are 23 considered. The second step uses the rate changes determined in the 24 first step to calculate the actual tax refund amounts, by rate class, for the 25 refund period. The process used to calculate the rate changes is 26 summarized below and the results are presented in my Exhibits JMS-11 27 through JMS-13. The subsequent calculation of the actual tax refund 28 amounts are also described below. 29 Exhibit JMS-11 shows the functionalized Revenue Requirements 30 for the Return on Rate Base and the major expense categories (e.g., Sherburne Direct Oncor Electric Delivery FIT -Related Rate Reduction -15- 49 1 Depreciation) for two separate scenarios — one designated "Final Order' 8 2 that is based on an FIT rate of 35%, and another designated "21 % From 3 Filed DCRF (DCRF—Baseline—COS.xlsx)" that applies the effects of the 4 TCJA. The values in the second scenario were determined by re -running 5 the Company's cost -of -service model used in Docket No. 46957 to 6 incorporate the changes in Rate Base and in the other expense categories 7 that result directly from the 21 % FIT rate. The detailed calculations from 8 the Company's cost -of -service model supporting the values in the second 9 scenario are shown in my Workpaper JMS/WP-5 and the comparison of 10 the results of the two scenarios are shown in Line Nos. 49-65 of Exhibit 11 JMS-11 under the heading "Difference between 21 % and Final Order ($)." 12 The total differences in revenue requirements, by function, are shown in 13 Line No. 71 of Exhibit JMS-11 and the results of the rate class allocation 14 process are shown in Exhibit JMS-12. 15 The final step in the process is shown on Page 1 of Exhibit JMS-13, 16 entitled "Calculation of Changes in Rates due to 21 % Tax Rate Change," 17 with the resulting rate changes for each rate class and function shown in 18 column (d). 19 Q. HOW DO YOU PROPOSE TO CALCULATE THE ACTUAL TAX REFUND 20 AMOUNT BY RATE CLASS? 21 A. The actual tax refund amount per rate class will be determined by 22 multiplying the change in various charges as shown on column (d) of my 23 Exhibit JMS-13 by the actual billing units for the period of January 1, 2018 24 through August 31, 2018. The amount for the Customer Charge, Meter 25 Charge, and Distribution System Charge will be summed for each rate 26 class. This sum will be the amount by rate class to be refunded through 27 Riders TRF and WTRF. The Riders will include factors that divide the 8 This designation applies to the Order in Docket No. 46957. Sherburne Direct Oncor Electric Delivery FIT -Related Rate Reduction -16- 50 1 Actual Tax Refund Amount by the projected rate class Distribution System 2 Charge billing units for the refund period (November 2018). 3 Q. HAVE YOU PROVIDED A FORECAST OF THE NOVEMBER 2018 4 DISTRIBUTION SYSTEM CHARGE BILLING UNITS BY RATE CLASS? 5 A. Yes, the forecast Distribution System Charge billing units by rate class for 6 November 2018, are provided as my Exhibit JMS-14. 7 Q. HAVE YOU INCLUDED A PROPOSED RIDER TRF AND RIDER WTRF 8 IN THIS PROCEEDING? 9 A. Yes, I have included the form of the Riders that are proposed to be used 10 once the actual tax refund amounts have been calculated (my Exhibit 11 JMS-15). The actual tax refund amounts by rate class will be divided by 12 the projected billing units for the refund period (November 2018) to 13 calculate the refund factors. The refund factors are proposed to be in 14 effect for one month beginning November 1, 2018, and I propose that 15 Oncor book amounts over- or under -refunded as a regulatory asset (or 16 liability) to be included in the Company's next base -rate case. 17 Q. HOW DO YOU PROPOSE THAT RIDER TRF AND RIDER WTRF BE 18 REVIEWED BY THE COMMISSION? 19 A. I propose that Oncor make a compliance filing within 30 days of the 20 implementation of the Retail and Wholesale Distribution rates in this 21 proceeding. In the compliance filing, Oncor will determine the actual 22 billing units by rate class for the period of January 1, 2018 through August 23 31, 2018, as described above. A calculation of the Actual Tax Refund 24 amounts by rate class will be determined, and the Actual Tax Refund 25 amounts by rate class will be divided by the projected November 2018 26 Distribution System Charge billing units by rate class, as described above 27 to determine the Rider TRF and Rider WTRF factors. Those factors will 28 be inserted into the form of Rider TRF and WTRF (proposed in my Exhibit 29 JMS-15). Oncor requests that the Commission approve the form of Rider 30 TRF and WTRF in this proceeding, and through its subsequent Sherburne Direct Oncor Electric Delivery FIT -Related Rate Reduction -17- 51 1 compliance filing, Oncor will seek approval of the final Rider TRF and 2 Rider WTRF to become effective in November 2018. 3 VII. REVISION TO RIDER RS — REMAND SURCHARGE AND RIDER WRS- 4 WHOLESALE REMAND SURCHARGE 5 Q. HAVE YOU PREPARED A PROPOSED REVISION TO RIDER RS — 6 REMAND SURCHARGE FOR THE RECOVERY OF REMANDED 7 EXPENSES APPROVED IN DOCKET NO. 468849 TO ADDRESS THE 8 TCJA'S 21 % TAX RATE? 9 A. Yes. I have used the lower FIT rate to recalculate the approved amount in 10 Docket No. 46884 for a recalculated approved amount ("RAA") of 11 $25,868,042.10 There are no excess ADFIT effects associated with the 12 remand surcharge. 13 However, considering that the refund of the original surcharge 14 amount of $26,747,458 is estimated to be collected by August 31, 2018 15 (which is before the projected date of an order in this proceeding), it is 16 likely that an over -recovery of the RAA will occur unless the RAA is 17 implemented in advance. Therefore, Oncor will cease billing Rider RS 18 once it has billed the RAA of $25,868,042 to avoid the need for a 19 subsequent refund of over -collected amounts. The revised Rider RS — 20 Remand Surcharge is included in my Exhibit JMS-6. 21 Q. HAVE YOU PREPARED A PROPOSED REVISION TO RIDER WRS — 22 WHOLESALE REMAND SURCHARGE FOR THE RECOVERY OF 23 REMANDED EXPENSES APPROVED IN DOCKET NO. 46884 TO 24 ADDRESS THE TCJA'S 21 % TAX RATE? 25 A. Yes. I have used the lower FIT rate to recalculate the approved amount in 26 Docket No. 46884 for an RAA of $6,366.11 There are no excess ADFIT 9 Remand of Docket No. 35717 (Application of Oncor Electric Delivery Company LLC for Authority to Change Rates), Docket No. 46884, Order (Sept. 29, 2017). 10 Refer to Workpaper JMS/WP-4. 11 Refer to Workpaper JMS/WP-4. Sherburne Direct Oncor Electric Delivery FIT -Related Rate Reduction -18- 52 1 effects associated with the remand surcharge. Because the original 2 surcharge amount of $7,728 is not estimated to be collected before the 3 projected date of an order in this proceeding, I am proposing to simply 4 change the RAA in this tariff and cease billing Rider WRS once it has 5 billed the RAA of $6,366. The revised Rider WRS — Remand Surcharge is 6 included in my Exhibit JMS-7. 7 Vill. CONCLUSION 8 Q. PLEASE SUMMARIZE YOUR DIRECT TESTIMONY. 9 A. I have performed a number of calculations to reduce the Company's rates 10 due to the reduced FIT rate under the TCJA. First, I calculated a total 11 reduction in the Company's Revenue Requirement for Retail Delivery 12 Service and Wholesale Distribution Service related to the reduced FIT rate 13 and the excess ADFIT effects of $90,531,502. Second, I calculated an 14 allocation of this amount to the Company's various retail and wholesale 15 distribution rate classes. Third, I calculated a new baseline revenue 16 requirement for the Company's TCOS ($14,975,333 reduction), resulting 17 in a new Rate NTS of $12,879.383079 (reduced from $13,101.988139). 1 18 am requesting that the new baseline be approved by July 1, 2018 for use 19 in the Company's next Interim TCOS filing. Fourth, I calculated a credit of 20 $12,219,430 owed to TDUs related to the lower FIT rate for the period 21 from January 1 — March 26, 2018. Fifth, I have used the lower FIT rate to 22 recalculate the approved amount of the Remand Surcharges from Docket 23 No. 46884 as shown in Rider RS — Remand Surcharge and Rider WRS — 24 Wholesale Remand Surcharge resulting in a reduction in the surcharge of 25 $874,412. Sixth, I have prepared revisions to all of the rate schedules in 26 the Company's Tariff for Retail Delivery Service and the Transmission 27 Service Tariff that are affected by the changes I am proposing. Finally, 1 28 have proposed a calculation methodology and proposed forms of Tariffs 29 (Rider TRF and Rider WTRF) for the refund of the amounts collected 30 through current rates from January 1, 2018 through August 31, 2018 that Sherburne Direct Oncor Electric Delivery FIT -Related Rate Reduction .19. 53 1 2 3 4 5 6 7 8 9 10 11 12 I are in excess of the amounts that would have been collected had the rates been set using a 21 % FIT rate. WHAT RELIEF IS ONCOR REQUESTING IN THIS PROCEEDING? Oncor is requesting that the Commission approve (i) the proposed changes to the Company's tariffs as filed effective September 1, 2018, (ii) the proposed NTS rate effective July 1, 2018, and (iii) the form of Rider TRF and Rider WTRF included in my Exhibit JMS-15, and that the Commission authorize Oncor to seek approval —through a subsequent compliance filing —of the final Rider TRF and Rider WTRF with effective dates of November 1, 2018. DOES THIS CONCLUDE YOUR DIRECT TESTIMONY? Yes, it does. Sherburne Direct Oncor Electric Delivery FIT -Related Rate Reduction -20- 54 STATE OF TEXAS § COUNTY OF DALLAS § BEFORE ME, the undersigned authority, on this day personally appeared J. Michael Sherburne, who, having been placed under oath by me, did depose as follows: My name is J. Michael Sherburne. I am of legal age and a resident of the State of Texas. The foregoing direct testimony and the attached exhibits offered by me are, to the best of my knowledge, information, and belief, accurate, true, and correct. �' A""l jul-� J. Michael Sherburne SUBSCRIBED AND SWORN TO BEFORE ME by the said J. Michael Sherburne this AS day of April, 2018. TERI SMART �l�Y PUe% Notary Public, State of Texas =�.-';?E Comm. Expires 11-13-2020 Notary Public, State of Texas n„ ��►�r Notary ID 614088-5 [I— — — - npnwwm� -21- 55 Exhibit JMS-1 Page 1 of 3 Oncor Electric Delivery Company LLC List of J. Michael Sherburne's Prior Commission Testimony Docket No. Case Style 11037 APPLICATION OF TEXAS UTILITIES ELECTRIC COMPANY FOR APPROVAL OF CALCULATION OF HOUSE BILL TAX ADJUSTMENT FACTORS FOR 1992. PURSUANT TO SUBST R. 23.21(d) APPL. OF TU ELECTRIC CO. FOR APPROVAL OF CALCULATION OF H.B. 11 TAX ADJUSTMENT 11632 FACTORS FOR 1993. PURSUANT TO SUBST. R. 23.21(d) 11735 APPLICATION OF TEXAS UTILITIES ELECTRIC COMPANY FOR AUTHORITY TO CHANGE RATES APPL. OF TEXAS UTILITIES ELEC CO FOR APPROVAL OF ITS 1995 INTEGRATED RESOURCE PLAN (IRP) AND THE DEMAND -SIDE MANAGEMENT PROGRAMS AND CONTRACTS, 13575 RENEWABLE RESOURCES AGREEMENT, AND NOTICES OF INTENT ASSOCIATED THEREWITH, FOR APPROVAL OF CERTAIN COST RECOVER COMPLAINT OF TEXAS DEPARTMENT OF TRANSPORTATION AGAINST TEXAS UTILITIES 20200 ELECTRIC COMPANY FULL SWITCHOVER COMPLIANCE FILINGS OF TEXAS -NEW MEXICO POWER COMPANY, 20546 TEXAS UTILITIES ELECTRIC COMPANY, SOUTHWESTERN ELECTRIC SERVICE COMPANY, AND THEIR COOPERATIVE COMPETITORS APPLICATION OF TXU ELECTRIC COMPANY FOR FINANCING ORDER TO SECURITIZE 21527 REGULATORY ASSETS AND OTHER QUALIFIED COSTS APPLICATION OF TXU ELECTRIC COMPANY TO REVISE TARIFF; TABLE OF CONTENTS; 22051 SECTION 2.1 CITIES SERVED LISTING AND TARIFF PAGES REFLECTING THE PROPOSED CHANGES GENERIC ISSUES ASSOCIATED WITH APPLICATIONS FOR APPROVAL OF UNBUNDLED COST 22344 OF SERVICE RATE PURSUANT TO PURA SECTION 39.201 AND PUBLIC UTILITY COMMISSION SUBST. R. 25.344 APPLICATION OF TXU ELECTRIC COMPANY FOR APPROVAL OF UNBUNDLED COST OF 22350 SERVICE RATE PURSUANT TO PURA §39.201 AND PUBLIC UTILITY COMMISSION SUBSTANTIVE RULE §25.344 24040 APPLICATION OF TXU ELECTRIC COMPANY TO IMPLEMENT PRICE TO BEAT FUEL FACTOR APPLICATION OF TXU ELECTRIC COMPANY FOR APPROVAL OF PRICE TO BEAT RATES IN 24236 COMPLIANCE WITH SUBST. R. 25.41(f)(1)(C) JOINT APPLICATION FOR APPROVAL OF STIPULATION REGARDING TXU ELECTRIC COMPANY 25230 TRANSITION TO COMPETITION ISSUES APPLICATION OF TXU ENERGY RETAIL COMPANY TO INCREASE PRICE TO BEAT FUEL 25802 FACTORS APPLICATION OF TXU ENERGY RETAIL COMPANY TO INCREASE PRICE TO BEAT FUEL 27281 FACTORS APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY FOR INTERIM UPDATE OF 27561 WHOLESALE TRANSMISSION RATES PURSUANT TO SUBST. R. 25.192(g)(1) ONCOR ELECTRIC DELIVERY COMPANY'S COMPLIANCE TARIFF FILING AND PETITION TO 28563 PROVIDE COMPETITIVE METERING CREDIT PURSUANT TO SUBST. R. §25.311 APPLICATION OF TXU SESCO ENERGY SERVICES COMPANY TO INCREASE PRICE TO BEAT 28585 FUEL FACTORS AND REDUCE PRICE TO BEAT BASE RATES PETITION OF ONCOR ELECTRIC DELIVERY COMPANY PURSUANT TO P.U.C. SUBST. R. 28636 25.41(1)(1) REGARDING SMALL COMMERCIAL POWER CONSUMPTION THRESHOLD TARGET 29208 TXU SESCO ENERGY SERVICES COMPANY TRUE -UP FILING PURSUANT TO PURA §39.262(e) APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY FOR INTERIM UPDATE OF 29425 WHOLESALE TRANSMISSION RATES PURSUANT TO SUBSTANTIVE RULE 25.192(g)(1) APPLICATION OF TXU ENERGY RETAIL COMPANY TO INCREASE PRICE TO BEAT FUEL 29516 FACTORS APPLICATION OF TXU ENERGY RETAIL COMPANY TO INCREASE PRICE TO BEAT FUEL 29837 FACTORS APPLICATION OF TXU ELECTRIC DELIVERY COMPANY FOR INTERIM UPDATE OF WHOLESALE 30802 TRANSMISSION RATES PURSUANT TO SUBST. R. 25.192(g)(1) PETITION OF TXU GENERATION COMPANY LP FOR ADMINISTRATIVE DETERMINATION THAT 31841 THE FORTY PERCENT THRESHOLD TARGET OF PURA §39.153(b) HAS BEEN MET APPLICATION OF TXU ELECTRIC DELIVERY COMPANY FOR INTERIM UPDATE OF WHOLESALE 32462 TRANSMISSION RATES PURSUANT TO SUBST. R. 25.192(g)(1) -22 56 Exhibit JMS-1 Page 2of3 Oncor Electric Delivery Company LLC List of J. Michael Sherburne's Prior Commission Testimony Docket No. Case Style APPLICATION OF TXU ELECTRIC DELIVERY COMPANY FOR INTERIM UPDATE OF WHOLESALE 33904 TRANSMISSION RATES PURSUANT TO SUBST. R. §25.192(g)(1) PETITION BY COMMISSION STAFF FOR A REVIEW OF THE RATES OF TXU ELECTRIC 34040 DELIVERY COMPANY APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY LLC FOR INTERIM UPDATE OF 35398 WHOLESALE TRANSMISSION RATES PURSUANT TO SUBST. R. §25.192(g)(1) ONCOR ELECTRIC DELIVERY COMPANY LLC'S REQUEST FOR APPROVAL OF ENERGY 35634 EFFICIENCY COST RECOVERY FACTOR PETITION OF BIG COUNTRY ELECTRIC COOPERATIVE, INC. FOR A CEASE AND DESIST 35690 ORDER APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY LLC FOR AUTHORITY TO CHANGE 35717 RATES ONCOR ELECTRIC DELIVERY COMPANY LLC'S REQUEST FOR APPROVAL OF ADVANCED 35718 METERING SYSTEM (AMS) DEPLOYMENT PLAN AND REQUEST FOR ADVANCED METERING SYSTEM (AMS)SURCHARGE APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY LLC FOR RATE CASE EXPENSES 36530 PERTAINING TO PUC DOCKET NO. 35717 ONCOR ELECTRIC DELIVERY LLC'S APPLICATION FOR 2010 ENERGY EFFICIENCY COST 36958 RECOVERY FACTOR APPLICATION OF ONCOR ELECTRIC DELIVERY LLC FOR INTERIM UPDATE OF WHOLESALE 37496 TRANSMISSION RATES PURSUANT TO SUBST. R. §25.192(g)(1) ONCOR ELECTRIC DELIVERY LLC'S APPLICATION FOR 2011 ENERGY EFFICIENCY COST 36217 RECOVERY FACTOR APPLICATION OF ONCOR ELECTRIC DELIVERY LLC FOR INTERIM UPDATE OF WHOLESALE 38495 TRANSMISSION RATES PURSUANT TO SUBST. R. §25.192(g)(1) APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY LLC FOR AUTHORITY TO CHANGE 38929 RATES APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY LLC FOR RATE CASE EXPENSE 39239 SEVERED FROM PUC DOCKET NO. 38929 APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY, LLC FOR 2012 ENERGY EFFICIENCY 39375 COST RECOVERY FACTOR APPLICATION OF ONCOR ELECTRIC DELIVERY LLC FOR INTERIM UPDATE OF WHOLESALE 39644 TRANSMISSION RATES PURSUANT TO SUBST. R. §25.192(h)(1) APPLICATION OF ONCOR ELECTRIC DELIVERY LLC FOR INTERIM UPDATE OF WHOLESALE 40142 TRANSMISSION RATES PURSUANT TO SUBST. R. §25.192(h)(1) APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY, LLC FOR 2013 ENERGY EFFICIENCY 40361 COST RECOVERY FACTOR APPLICATION OF ONCOR ELECTRIC DELIVERY LLC FOR INTERIM UPDATE OF WHOLESALE 40603 TRANSMISSION RATES PURSUANT TO SUBST. R. §25.192(h)(1) APPLICATION OF ONCOR ELECTRIC DELIVERY LLC FOR INTERIM UPDATE OF WHOLESALE 41166 TRANSMISSION RATES PURSUANT TO SUBST. R. §25.192(h)(1) APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY, LLC FOR 2014 ENERGY EFFICIENCY 41544 COST RECOVERY FACTOR APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY LLC FOR INTERIM UPDATE OF 41706 WHOLESALE TRANSMISSION RATES PURSUANT TO SUBST. R. §25.192(h)(1) COMPLIANCE TARIFF OF ONCOR ELECTRIC DELIVERY COMPANY LLC REGARDING THE 41890 RULEMAKING RELATED TO ADVANCED METERING ALTERNATIVES, PURSUANT TO SUBST. R. 25.133 e 1 REMAND OF DOCKET NO. 36530 (APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY 42113 LLC FOR RATE CASE EXPENSES RELATED TO PUC DOCKET NO. 35717) APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY LLC FOR INTERIM UPDATE OF 42267 WHOLESALE TRANSMISSION RATES PURSUANT TO SUBST. R. §25.192(h)(1) APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY, LLC FOR 2015 ENERGY EFFICIENCY 42559 COST RECOVERY FACTOR APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY LLC FOR INTERIM UPDATE OF 42706 WHOLESALE TRANSMISSION RATES PURSUANT TO SUBST. R. §25.192(h)(1) APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY LLC FOR INTERIM UPDATE OF 44363 WHOLESALE TRANSMISSION RATES PURSUANT TO SUBST. R. §25.192(h)(1) APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY, LLC TO ADJUST ITS ENERGY 44784 EFFICIENCY COST RECOVERY FACTOR -23- 57 Exhibit JMS-1 Page 3 of 3 Oncor Electric Delivery Company LLC List of J. Michael Sherburne's Prior Commission Testimony Docket No. Case Style APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY LLC FOR INTERIM UPDATE OF 44968 WHOLESALE TRANSMISSION RATES PURSUANT TO SUBST. R. §25.192(h)(1) APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY LLC FOR APROVAL OF REVISIONS 45367 TO RIDER NDC PURSUANT TO PUC SUBST. R. 25.303(G)(3) COMPLAINT OF GIOVANNI HOMES CORPORATION AGAINST ONCOR ELECTRIC DELIVERY 45854 COMPANY LLC APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY, LLC TO ADJUST ITS ENERGY 46013 EFFICIENCY COST RECOVERY FACTOR APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY LLC FOR INTERIM UPDATE OF 46210 WHOLESALE TRANSMISSION RATES PURSUANT TO 16 TEX. ADMIN. CODE §25.192(h)(1) APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY LLC FOR INTERIM UPDATE OF 46825 WHOLESALE TRANSMISSION RATES PURSUANT TO 16 TEX. ADMIN. CODE §25.192(h)(1) APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY LLC FOR AUTHORITY TO CHANGE 46957 RATES APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY, LLC TO ADJUST ITS ENERGY 47235 EFFICIENCY COST RECOVERY FACTOR APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY LLC FOR INTERIM UPDATE OF 47988 WHOLESALE TRANSMISSION RATES PURSUANT TO 16 TEX. ADMIN. CODE §25.192(h)(1) APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY LLC FOR APPROVAL OF A 48231 DISTRIBUTION COST RECOVERY FACTOR PURSUANT TO 16 TEX. ADMIN. CODE §25.243 -24- 58 Exhibit JMS-2 Oncor Electric Delivery Company LLC Page 1 of 1 Adjustment for Change To Final Order (Tax Rate 35%) for TCJA and EXDFIT Test Year Ending 12/31/2016 Line No. (a) (b) (c) (d) (e) (f) (g) 1 Final Order ($) 2 TCOS Consolidation of 3 Revenue Requirement Revenue Functionalized 4 Customer Meter Distribution Total Requirement Revenue 5 Return on Rate Base 6,259,419 35,401,529 436,459,214 478,120,162 339,958,933 818,079,095 6 0&M (excl Accts 565 & 928) 61,062,294 113,585,556 527,334,571 701,982,421 148,102,424 850,084,845 7 Account 565 1,275,361,481 1,275,361,481 1,275,361,481 8 Account928 4,590,642 4,590,642 .4,590,642 9 Depreciation 12,602,078 119,788,652 302,864,371 435,255,100 219,906,015 655,161,115 10 Federal IncomerTaxes (FIT) 1,912,903 10,741,486 130,911,546 143,565,935 101,687,436 245,253,371 11 Taxes other than FIT 1,926,728 7,902,695 393,213,089 403,042,513 85,298,597 488,341,109 12 Other Revenue (541,452) 7 924 914 (39,903,430) (48,369,796) (22,462,012) (70,831,809) 13 Revenue Requirement 83,221,970 279,495,004 3,030,831,483 3,393,548,457 872,491,393 4,266,039,850 14 Other Revenue 48,369,796 22,462,012 70,831,809 15 Total Revenue Requirement 3,441,918,254 894,953,405 4,336,871,659 16 Excl Acct 928 4 590 642 0 (4,590,6421 17 Total Cost of Service 3,437,327,612 894,953,405 4,332,281,017 18 19 Rate Design to Recover: 20 Revenue Requirement 83,221,970 279,495,004 3,030,831,483 3,393,548,457 21 Exclude: Account 565 0 0 (1,275,361,481) (1,275,361,481) 22 Account 928 0 0 (4,590,642) (4,590,642) 23 Rate Design Revenue 83,221,970 279,495,004 1,750,979,361 2,113,596,334 24 25 TCJA and EXDFIT ($) 26 TCOS Consolidation of 27 Revenue Requirement Revenue Functionalized 28 Customer Meter Distribution Total Requirement Revenue 29 Return on Rate Base 61247,489 35,390,424 436,288,106 477,926,019 339,946,951 817,872,970 30 O&M (excl Accts 565 & 928) 61,062,294 113,585,556 527,334,571 701,982,421 148,102,424 850,084,845 31 Account 565 1,251,393,343 1,251,393,343 1,251,393,343 32 Account 928 4,590,642 4,590,642 4,590,642 33 Depreciation 12,602,078 119,788,652 302,864,371 435,255,100 219,906,015 655,161,115 34 Federal Incomer Taxes (FIT) 3,194,234 7,059,322 42,992,606 53,246,162 34,974,610 88,220,772 35 Taxes other than FIT 1,933,427 7,883,203 392,621,679 402,438,310 85,072,939 487,511,249 36 Other Revenue 541452 7 924 914 (39,316,813) (47,783,179) (22,462,012) (70,245,192) 37 Revenue Requirement 84,498,071 275,782,243 2,918,768,504 3,279,048,818 805,540,928 4,084,589,745 38 Other Revenue 47,783,179 22,462,012 70,245,192 39 Total Revenue Requirement 3,326,831,997 828,002,940 4,154,834,937 40 Excl Acct 928 (4,590,642) 0 (4,590,642) 41 Total Cost of Service 3,322,241,355 828,002,940 4,150,244,295 42 43 Rate Design to Recover: 44 Revenue Requirement 84,498,071 275,782,243 2,918,768,504 3,279,048,818 45 Exclude: Account 565 0 0 (1,251,393,343) (1,251,393,343) 46 Account 928 0 0 (4,590,642) (4,590,642 47 Rate Design Revenue 84,498,071 275,782,243 1,662,784,519 2,023,064,833 48 49 Difference between TCJA/EXDFIT and Final Order ($) 50 TCOS Consolidation of 51 Revenue Requirement Revenue Functionalized 52 Customer Meter Distribution Total Requirement Revenue 53 Return on Rate Base (11,930) (11,105) (171,109) (194,143) (11,982) (206,125) 54 O&M (excl Accts 565 & 928) 0 0 0 0 0 0 55 Account 565 0 0 (23,968,139) (23,968,138) 0 (23,968,138) 56 Account 928 0 0 0 0 0 0 57 Depreciation 0 0 0 0 0 0 58 Federal lncomerTaxes (FIT) 1,281,331 (3,682,164) (87,918,940) (90,319,773) (66,712,826) (157,032,599) 59 Taxes other than FIT 6,700 (19,492) (591,410) (604,203) (225,657) (829,860) 60 Other Revenue 0 0 586,617 586,617 0 586,617 61 Revenue Requirement 1,276,101 (3,712,761) (112,062,980) (114,499,640) (66,950,465) (181,450,104) 62 Other Revenue (586,617) 0 (586,617) 63 Total Revenue Requirement (115,086,257) (66,950,465) (182,036,721) 64 Excl Acct 928 j0) 0 L) 65 Total Cost of Service (115,086,257) (66,950,465) (182,036,722) 66 67 Rate Design to Recover: 68 Revenue Requirement 1,276,101 (3,712,761) (112,062,980) (114,499,640) 69 Exclude: Account 565 0 0 23,968,138 23,968,138 70 Account 928 0 0 ll n 71 Rate Design Revenue 1,276,101 (3,712,761) (88,094,842) (90,531,502) -25- 59 Exhibit JMS-3 Page 1 of 1 Oncor Electric Delivery Company LLC Allocation of Functionalized Revenue Requirements Test Year Ending 12/31/2016 Line No. (a) (b) (c) (d) 1 Customer Cost Allocation 2 Revenue Requirement Change in Revenue 3 Rate Class Final Order TCJA & EXDFIT Requirement 4 Residential $47,793,937 $48,526,790 $732,853 5 Secondary <= 10 kW 7,013,763 $7,122,286 108,523 6 Secondary > 10 kW 21,531,951 $21,861,254 329,303 7 Primary <= 10 kW 166,284 $168,868 2,584 8 Primary > 10 kW 5,769,076 $5,858,122 89,046 9 Primary Substation 128,241 $130,134 1,893 10 Transmission 282,678 $286,682 4,004 11 Lighting 456,628 $463,287 6,659 12 Wholesale XFMR 18,523 $18,811 288 13 Wholesale DLS 60,889 $61,837 948 14 $83,221,970 $84,498,071 $1,276,101 15 16 Meter Cost Allocation 17 Revenue Requirement Change in Revenue 18 Rate Class Final Order TCJA & EXDFIT Requirement 19 Residential $161,558,716 $159,420,718 ($2,137,998) 20 Secondary <= 10 kW 23,861,410 23,544,844 (316,566) 21 Secondary > 10 kW 72,141,380 71,176,012 (965,368) 22 Primary <= 10 kW 566,400 558,865 (7,536) 23 Primary > 10 kW 19,495,783 19,235,115 (260,668) 24 Primary Substation 414,022 408,429 (5,594) 25 Transmission 877,908 865,594 (12,315) 26 Lighting 300,726 297,607 (3,120) 27 Wholesale XFMR 64,992 64,157 (836) 28 Wholesale DLS 213,665 210,903 (2,762) 29 $279,495,004 $275,782,243 ($3,712,761) 30 31 Distribution System Cost Allocation 32 Revenue Requirement Change in Revenue 33 Rate Class Final Order TCJA & EXDFIT Requirement 34 Residential $870,210,113 $823,673,417 ($46,536,696) 35 Secondary <= 10 kW 32,403,561 30,680,638 (1,722,923) 36 Secondary > 10 kW 689,407,140 654,902,273 (34,504,867) 37 Primary <= 10 kW 165,059 156,691 (8,368) 38 Primary > 10 kW 81,818,380 78,345,089 (3,473,290) 39 Primary Substation 6,474,693 6,225,089 (249,604) 40 Transmission 18,243,844 18,073,377 (170,468) 41 Lighting 47,081,467 45,914,315 (1,167,152) 42 Wholesale XFMR 916,247 869,037 (47,210) 43 Wholesale DLS 4,158,857 3,944,591 (214,265) 44 $1,750,879,361 $1,662,784,519 ($88,094,842) 45 46 Total $2,113,596,334 $2,023,064,833 -$90,531,502 -26- 60 Exhibit JMS-4 Page 1 of 3 Oncor Electric Delivery Company LLC Calculation of Changes in Rates Due to TCJA and EXDFIT Test Year Ending 12/31/2016 Line No. (a) (b) (c) (d) 1 Customer Charge 2 Changein 3 Changein Number of Bills Customer Charge due to 4 Rate Class Revenue Requirement* (see page 2) TCJA & EXDFIT 5 Residential $732,853 35,424,336 $0.02 6 Secondary <= 10 kW 108,523 3,271,872 $0.03 7 Secondary> 10 kW 329,303 2,342,136 $0.14 8 Primary <= 10 kW 2,584 23,520 $0.11 9 Primary> 10 kW 89,046 68,940 $1.29 10 Primary Substation 1,893 1,104 $1.71 11 Transmission 4,004 2,448 $1.64 12 Lighting 6,659 - - 13 Wholesale XFMR 288 180 $1.60 14 Wholesale DLS 948 612 $1.55 15 $1,276,101 16 Meter Charge 17 Changein 18 Changein Number of Bills Meter Charge due to 19 Rate Class Revenue Requirement# (see page 2) TCJA & EXDFIT 20 Residential ($2,137,998) 35,424,336 ($0.06) 21 Secondary <= 10 kW (316,566) 3,271,872 ($0.10) 22 Secondary> 10 kW (965,368) 2,342,136 ($0.41) 23 Primary <= 10 kW (7,536) 23,520 ($0.32) 24 Primary > 10 kW (260,668) 68,940 ($3.78) 25 Primary Substation (5,594) 1,104 ($5.07) 26 Transmission (12,315) 2,448 ($5.03) 27 Lighting (3,120) - - 28 Wholesale XFMR (836) 180 ($4.64) 29 Wholesale DLS (2,762) 612 ($4.51) 30 ($3,712,761) 31 Distribution System Charge 32 Change in Distribution 33 Changein Billing Units kWh/kW System Charge due to 34 Rate Class Revenue Requirement# (see page 3) TCJA & EXDFIT 35 Residential ($46,536,696) 43,407,410,468 ($0.001072) 36 Secondary <= 10 kW (1,722,923) 1,827,493,529 ($0.000943) 37 Secondary > 10 kW (34,504,867) 150,381,395 ($0.229449) 38 Primary <= 10 kW (8,368) 23,524,289 ($0.000356) 39 Primary > 10 kW (3,473,290) 28,249,038 ($0.122953) 40 Primary Substation (249,604) 6,128,346 ($0.040729) 41 Transmission (170,468) 31,417,739 ($0.005426) 42 Lighting (1,167,152) 436,938,761 ($0.002663) 43 Wholesale XFMR (47,210) 1,321,680 ($0.035720) 44 Wholesale DLS (214,265) 1,295,419 ($0.165402) 45 ($88,094,842) 46 47 * Calculated Rate per kWh is the sum of Change in Revenue Requirement for Customer Charge ($6,659), 48 Meter Charge (-$3,120), and Distribution System Charge (-$1,167,152) divided by class kWh. 49 # See Column (d) of Exhibit JMS-3 -27- 61 Exhibit JMS-4 Page 2 of 3 Oncor Electric Delivery Company LLC Calculation of Changes in Rates Due to TC1A and EXDFIT Oncor/Sharyland Billing Information Used To Design Rates Approved In Docket No. 46957 Test Year ending 12/31/2016 LINE DESCRIPTION VOLT Billing Unit Type Oncor' Sharyland2 Total Bills (a) (b) (c) (d) (e) (f) 1 Residential Bills 35,106,108 318,228 35,424,336 2 Secondary 10 kW and Below Bills 3,110,640 161,232 3,271,872 3 Secondary Greater than 10 kW Bills 2,220,816 121,320 2,342,136 4 Primary 10 kW and Below Bills 23,520 0 23,520 5 Primary Greater than 10 kW Bills 57,096 11,844 68,940 6 Substation Bills 1,104 0 1,104 7 Transmission Bills 2,232 216 2,448 8 Lighting Bills 701,424 36,600 738,024 9 Wholesale - Substation Primary Bills 168 12 180 10 Wholesale - Distribution Line Primary Bills 612 0 612 1 Refer to Docket No. 46957, Schedule II-H-4.1, page 9, column (a) Z Refer to Docket No. 45414, Schedule IV-1-7.2 .28- 62 Exhibit JMS-4 Page 3 of 3 Oncor Electric Delivery Company LLC Calculation of Changes in Rates Due to TCJA and EXDFIT Schedule H: Distribution Revenues, Sales and Customer Data Oncor DCRF Baseline, 12/31/2016 Test Year LINE DESCRIPTION VOLT Billing Unit Type (1) Reference Schedule Workpaper Billing units approved in Docket No. 46957* (2) (a) (b) (c) (d) (e) 1 Residential kWh WP/Sched H 43,407,410,468 2 Secondary 10 kW and Below kWh WP/Sched H 1,827,493,529 3 Secondary Greater than 10 kW kW WP/Sched H 150,381,395 4 Primary 10 kW and Below kWh WP/Sched H 23,524,289 5 Primary Greater than 10 kW kW WP/Sched H 28,249,038 6 Substation kW WP/Sched H 6,128,346 7 Transmission kW WP/Sched H 31,417,739 8 Streetlighting (Unmetered) kWh WP/Sched H 323,819,626 9 Streetlighting (Metered/Non-Co) kWh WP/Sched H 13,841,616 10 Streetlighting (Metered/Co) kWh WP/Sched H 512,785 11 Outdoor kWh WP/Sched H 98,764,734 436,938,761 12 Total Lighting WP/Sched H 13 Wholesale - Substation Primary kW WP/Sched H 1,321,680 14 Wholesale - Distribution Line Primary kW WP/Sched H 1,295,419 *Source: Docket No. 46957, Item No. 420, Attachment 4 - DCRF Baseline, Schedule H, Page 16 of 17, Bates Stamp Page No 324. -29- 63 Exhibit JMS-5 Page 1 of 2 Oncor Electric Delivery Company LLC Summary of Proposed Rates Due to TCJA and EXDFIT Test Year Ending 12/31/2016 Line No. (a) (b) (c) (d) 1 Customer Charge 2 Final Change in Final Order 3 Order Customer Charge Due to Proposed 4 Rate Class Rates TCJA and EXDFIT Rate 5 Residential $0.89 $0.02 $0.91 6 Secondary <= 10 kW $2.03 $0.03 $2.06 7 Secondary> 10 kW $9.18 $0.14 $9.32 8 Primary <= 10 kW $6.17 $0.11 $6.28 9 Primary> 10 kW $14.97 $1.29 $16.26 10 Primary Substation $150.37 $1.71 $152.08 11 Transmission $161.34 $1.64 $162.98 12 Lighting - - 13 Wholesale XFMR $104.62 $1.60 $106.22 14 Wholesale DLS $79.76 $1.55 $81.31 15 16 17 Meter Charge 18 Final Change in Final Order 19 Order Meter Charge Due to Proposed 20 Rate Class Rates TCJA and EXDFIT Rate 21 Residential $2.60 ($0.06) $2.54 22 Secondary <= 10 kW $6.19 ($0.10) $6.09 23 Secondary> 10 kW $31.35 ($0.41) $30.94 24 Primary <= 10 kW $18.91 ($0.32) $18.59 25 Primary > 10 kW $41.00 ($3.78) $37.22 26 Primary Substation $255.07 ($5.07) $250.00 27 Transmission $263.30 ($5.03) $258.27 28 Lighting - 29 Wholesale XFMR $258.05 ($4.64) $253.41 30 Wholesale DLS $232.07 ($4.51) $227.56 31 32 Distribution System Charge 33 Final Change in Final Order 34 Order Distribution System Proposed 35 Rates Charge Due to Rate 36 Rate Class kWh kW TCJA and EXDFIT kWh kW 37 Residential $0.021141 ($0.001072) $0,020069 38 Secondary <= 10 kW $0.022625 ($0.000943) $0.021682 39 Secondary > 10 kW $4.775600 ($0.229449) $4.546151 40 Primary <= 10 kW $0.003629 ($0.000356) $0.003273 41 Primary > 10 kW $3.944984 ($0.122953) $3.822031 42 Primary Substation $0.530000 ($0.040729) $0.489271 43 Transmission $0.261200 ($0.005426) $0.255774 44 Lighting * - ($0.002663) ** 45 Wholesale XFMR $0.300000 ($0.035720) $0.264280 46 Wholesale DLS $0.940000 ($0.165402) $0.774598 47 48 49 * For unmetered lighting, the Schedule amount/Facilities Charge was reduced by the per kWh 50 reduction found in column (c) multipied by monthly kWh. For metered lighting options, the 51 reduction in column (c) was applied to the Distribution System Charge. 52 ** Calculated Rate per kWh is the sum of Change in Revenue Requirement on Exhibit JMS-4, Page 1, 53 for Customer Charge ($6,659), Meter Charge (-$3,120), and Distribution System Charge (-$1,167,152) 54 divided by class kWh. -30- 64 Line No. 1 2 3 4 5 6 7 8 9 10 11 12 Oncor Electric Delivery Company LLC Summary of Proposed Rates Due to TCJA and EXDFIT Test Year Ending 12/31/2016 (a) Secondary Service Greater Than 10 kW NCP kW Less than or equal to 20 kW Greater than 20 kW (b) (c) Final Order Rate Annual Load per Distribution Factor Billing kW All 0% to 10% 11% to 15 % 16% to 20% 21% to 25% 26% and above $4.775600 $6.664054 $5.901778 $5.550602 $5.366679 $4.775600 (d) Change in Rate Due To TCJA & EXDFIT per Distribution Billing kW ($0.229449) ($0.320182) ($0.283558) ($0.266685) ($0.257848) ($0.229449) Exhibit JMS-5 Page 2 of 2 (e) Proposed Rate per Distribution Billing kW $4.546151 $6.343872 $5.618220 $5.283917 $5.108831 $4.546151 -31- 65 Tariff for Retail Delivery Service Exhibit JMS-6Page 1 of 24 Oncor Electric Delivery Company LLC _ _ 6.1.1 Delivery System Charges Sheet: 1.1 Applicable: Entire Certified Service Area Page 1 of 2 Effective Date: September 1, 2018 Revision: Ten Chapter 6: Company Specific Items 6.1 Rate Schedules 6.1.1 Delivery System Charges 6.1.1.1 Charges for Transmission and Distribution System Service 6.1.1.1.1 Residential Service AVAILABILITY This schedule is applicable to Delivery Service for residential purposes (which may include a small amount of non-residential usage incidental to residential usage) of a permanent nature to Individual Private Dwellings (including their appurtenant structures) and to individually metered apartments when such Delivery Service is to one Point of Delivery and measured through one Meter and is not for shared or resale purposes. Residential Service is limited to one Individual Private Dwelling per platted parcel of land or postal delivery address. If a premise is primarily used for non-residential purposes, Delivery Service will be provided under the Company's appropriate Secondary Service or Primary Service rate schedule. This schedule is not available for non-residential service, including but not limited to water wells, electric gates, barns, garages, boat docks, airplane hangars, or recreational vehicle parks, or for structures on the platted parcel of land requiring a separate Meter. TYPE OF SERVICE Delivery Service will be single-phase, 60 hertz, at a standard secondary voltage. Delivery Service will be metered using Company's standard watt-hour meter provided for this type of Delivery Service. Any other metering option(s) will be provided at an additional charge. Where Delivery Service of the type desired is not available at the Point of Delivery, additional charges and special contract arrangements may be required prior to Delivery Service being furnished, pursuant to section 6.1.2.2 of this Tariff. MONTHLY RATE 1. Transmission and Distribution Charges: Customer Charge Metering Charge Transmission System Charge Distribution System Charge II. Nuclear Decommissioning Charge III. Transmission Cost Recovery Factor: IV. Energy Efficiency Cost Recovery Factor: $0.91 $2.54 $0.00 $0.020069 See Rider NDC See Rider TCRF See Rider EECRF per Retail Customer per Retail Customer per kWh per kWh per kWh -32- 66 Tariff for Retail Delivery Service Exhibit JMS-6 Oncor Electric Delivery Company LLC Page 2 of 24 6.1.1 Delivery System Charges Sheet: 1.1 Applicable: Entire Certified Service Area Page 2 of 2 Effective Date: September 1, 2018 Revision: Ten Other Charges or Credits V. Rate Case Expense Surcharge: VI. Remand Surcharge: VII. Capital Structure Refund: VIII. Distribution Cost Recovery Factor: IX. Tax Refund Factor: See Rider RCE per kWh See Rider RS per kWh See Rider CSR per kWh See Rider DCRF per kWh See Rider TRF per kWh COMPANY SPECIFIC APPLICATIONS Delivery Service is also available at three-phase 60 hertz, at a standard secondary voltage. NOTICE This rate schedule is subject to the Company's Tariff and Applicable Legal Authorities. -33- 67 Tariff for Retail Delivery Service Exhibit JMS-6 Oncor Electric Delivery Company LLC Page 3 of 24 6.1.1 Delivery System Charges Sheet: 1.2 Applicable: Entire Certified Service Area Page 1 of 2 Effective Date: September 1, 2018 Revision: Eleven 6.1.1.1.2 Secondary Service Less Than or Equal to 10 kW AVAILABILITY This schedule is applicable to Delivery Service for non-residential purposes at secondary voltage with demand less than or equal to 10 kW when such Delivery Service is to one Point of Delivery and measured through one Meter and is not for shared or resale purposes. TYPE OF SERVICE Delivery Service will be single-phase, 60 hertz, at a standard secondary voltage. Delivery Service will be metered using Company's standard watt-hour meter provided for this type of Delivery Service, unless Retail Customer is eligible for and chooses a competitive meter provider. Any meter other than the standard meter provided by Company will be provided at an additional charge. Where Delivery Service of the type desired is not available at the Point of Delivery, additional charges and special contract arrangements may be required prior to Delivery Service being furnished, pursuant to Section 6.1.2.2 of this Tariff. MONTHLY RATE I. Transmission and Distribution Charges: Customer Charge $2.06 per Retail Customer Metering Charge $6.09 per Retail Customer Transmission System Charge $0.00 per kWh Distribution System Charge $0.021682 per kWh 11. Nuclear Decommissioning Charge: See Rider NDC per kWh III. Transmission Cost Recovery Factor: See Rider TCRF IV. Energy Efficiency Cost Recovery Factor: See Rider EECRF V. Competitive Meter Credit: See Rider CMC Other Charges or Credits VI. Rate Case Expense Surcharge: See Rider RCE per kWh VII. Remand Surcharge: See Rider RS per kWh Vlll. Capital Structure Refund: See Rider CSR per kWh IX. Distribution Cost Recovery Factor: See Rider DCRF per kWh X. Tax Refund Factor: See Rider TRF per kWh COMPANY SPECIFIC APPLICATIONS Delivery Service is also available at three-phase 60 hertz, at a standard secondary voltage. Premises with a standard watt-hour meter that use 3,500 kWh or more in a month will have a demand meter installed to determine continued eligibility under this schedule. If the usage at a premise with an advanced meter reaches or exceeds 3,500 kWh in a month, any recorded demand of greater than 10 kW in subsequent months will result in the premise being assigned to the Secondary Greater than 10 kW rate schedule. -34- 68 Tariff for Retail Delivery Service Exhibit JMS-6 Oncor Electric Delivery Company LLC Page 4 of 24 6.1.1 Delivery System Charges Sheet: 1.2 Applicable: Entire Certified Service Area Page 2 of 2 Effective Date: September 1, 2018 Revision: Eleven UNMETERED SERVICE Company will provide unmetered service and calculate billing determinants for such service based on a 100 percent load factor. These billing determinants are applied to all charges included in this rate schedule. Delivery Service to telecommunications devices and governmental non -lighting related loads whose maximum power requirements do not exceed 80 watts will be billed at the Monthly Rate specified above, subject to the following conditions: 1. The monthly energy consumption for devices with a maximum load of 20 watts or less will be set at 10 kWh per device. 2. The monthly energy consumption for devices with a maximum load of 21 to 40 watts will be set at 20 kWh per device. 3. The monthly energy consumption for devices with a maximum load of 41 to 60 watts will be set at 35 kWh per device. 4. The monthly energy consumption for devices with a maximum load of 61 to 80 watts will be set at 50 kWh per device. 5. A maximum of 50 individual devices can be aggregated to a single account (i.e., a single ESI ID), subject to the following conditions: a. All aggregated devices must have the same assigned monthly energy consumption (i.e., either 10 kWh, 20 kWh, 35 kWh, or 50 kWh per device); b. All aggregated devices must be located in the same city and county (or, in the event all of the devices are located outside the limits of an incorporated city, all devices must be located in the same county). In lieu of the meter charge, a per device charge of $1 per month will be added to the applicable charges. AGREEMENT Provision of unmetered service will require an agreement that includes certification by the retail customer on at least an annual basis of the number of installed devices and specific location of each device. Failure by retail customer to obtain Company's authorization for changes to unmetered service may result in Company's refusal to continue service. NOTICE This rate schedule is subject to the Company's Tariff and Applicable Legal Authorities. -35- 69 Tariff for Retail Delivery Service Exhibit JMS-6 Oncor Electric Delivery Company LLC Page 5 of 24 6.1.1 Delivery System Charges Sheet: 1.3 Applicable: Entire Certified Service Area Page 1 of 3 Effective Date: September 1, 2018 Revision: Eleven 6.1.1.1.3 Secondary Service Greater Than 10 kW AVAILABILITY This schedule is applicable to Delivery Service at secondary voltage with demand greater than 10 kW when such Delivery Service is to one Point of Delivery and measured through one Meter. TYPE OF SERVICE Delivery Service will be single or three-phase, 60 hertz, at a standard secondary voltage. Delivery Service will be metered using Company's standard meter provided for this type of Delivery Service, unless Retail Customer is eligible for and chooses a competitive meter provider. Any meter other than the standard meter provided by Company will be provided at an additional charge. Where Delivery Service of the type desired is not available at the Point of Delivery, additional charges and special contract arrangements may be required prior to Delivery Service being furnished, pursuant to Section 6.1.2.2 of this Tariff. MONTHLY RATE I. Transmission and Distribution Charges: Customer Charge Metering Charge Transmission System Charge See Demand Determination Distribution System Charge $9.32 $30.94 $0.00 $0.00 See Table Below per Retail Customer per Retail Customer per NCP kW per 4CP kW NCP kW Annual Load Factor per Distribution Billing kW Less than orequal to 20 kW All $4.546151 Greater than 20 kW 0% - 10% $6.343872 11 % - 15% $5.618220 16% - 20% $5.283917 21 % - 25% $5.108831 26% and above $4.546151 II. Nuclear Decommissioning Charge: Ill. Transmission Cost Recovery Factor: IV. Energy Efficiency Cost Recovery Factor: V. Competitive Meter Credit: See Rider NDC See Rider TCRF See Rider EECRF See Rider CMC per Distribution System billing kW -36- 70 Tariff for Retail Delivery Service Exhibit JMS-6 Oncor Electric Delivery Company LLC Page 6 of 24 6.1.1 Delivery System Charges Sheet: 1.3 Applicable: Entire Certified Service Area Page 2 of 3 Effective Date: September 1, 2018 Revision: Eleven Other Charges or Credits VI. Rate Case Expense Surcharge: See Rider RCE per Distribution System billing kW VII. Remand Surcharge: See Rider RS per Distribution System billing kW Vill. Capital Structure Refund: See Rider CSR per Distribution System billing kW IX. Distribution Cost Recovery Factor: See Rider DCRF per Distribution System billing kW X. Tax Refund Factor: See Rider TRF per Distribution System billing kW COMPANY SPECIFIC APPLICATIONS At Company's option, locations where the electrical installation has multiple connections to Company's conductors, due to Company facilities limitations or design criteria, may be considered one Point of Delivery for billing purposes. DETERMINATION OF BILLING DEMAND FOR TRANSMISSION SYSTEM CHARGES Any Premises that has established an NCP kW of at least 700 kW in any previous billing month, or Retail Customers billed on 4CP kW prior to the effective date of this tariff, shall be billed on their 4CP kW pursuant to the Determination of 4CP kW provision shown below. DETERMINATION OF NCP kW The NCP kW applicable under the Monthly Rate section shall be the kW supplied during the 15 minute period of maximum use during the billing month. DETERMINATION OF 4CP kW The 4CP kW applicable under the Monthly Rate section shall be the average of the Retail Customer's integrated 15 minute demands at the time of the monthly ERCOT system 15 minute peak demand for the months of June, July, August and September of the previous calendar year. The Retail Customer's average 4CP demand will be updated effective on January 1 of each calendar year and remain fixed throughout the calendar year. Retail Customers without previous history on which to determine their 4CP kW will be billed at the applicable NCP rate under the "Transmission System Charge" using the Retail Customer's NCP kW. DETERMINATION OF BILLING DEMAND FOR DISTRIBUTION SYSTEM CHARGES DETERMINATION OF ANNUAL LOAD FACTOR The Annual Load Factor for each premise shall be calculated using the previous year's usage for that premise ending with the December Bill Cycle. The Annual Load Factor shall apply for the following 12 billing months. The Annual Load Factor calculation is as follows: kWh Used in 12 Billing Months Ending December Maximum NCP kW for the 12 Billing Months Ending December * Days in Billing Periods * 24 For premises with less than 12 months usage history, the available billing history shall be used for determining the Annual Load Factor. However, if less than 90 days of billing history is available, the premise shall be assumed to have an Annual Load Factor greater than 25%. -37- 71 Tariff for Retail Delivery Service Exhibit JMS-6 Oncor Electric Delivery Company LLC Page 7 of 24 6.1.1 Delivery System Charges Sheet: 1.3 Applicable: Entire Certified Service Area Page 3 of 3 Effective Date: September 1, 2018 Revision: Eleven DETERMINATION OF BILLING kW For loads whose maximum NCP kW established in the 11 months preceding the current billing month is less than or equal to 20 kW, the Billing kW applicable to the Distribution System Charge shall be the NCP kW for the current billing month. For loads whose maximum NCP kW established in the 11 months preceding the current billing month is greater than 20 kW and their Annual Load Factor is less than or equal to 25%, the Billing kW applicable to the Distribution System Charge shall be the NCP kW for the current billing month Billing kW applicable to Riders TC, NDC, RCE charges shall be the higher of the NCP kW for the current billing month or 80% of the highest monthly NCP kW established in the 11 months preceding the current billing month (80% ratchet). For all other loads, the Billing kW applicable to the Distribution System Charge shall be the higher of the NCP kW for the current billing month or 80% of the highest monthly NCP kW established in the 11 months preceding the current billing month (80% ratchet). The 80% ratchet and the Annual Load Factor Provisions shall not apply to Retail Seasonal Agricultural Customers. NOTICE This rate schedule is subject to the Company's Tariff and Applicable Legal Authorities. -38- 72 Tariff for Retail Delivery Service Exhibit JMS-6 Oncor Electric Delivery Company LLC Page 8 of 24 6.1.1 Delivery System Charges Sheet: 1.4 Applicable: Entire Certified Service Area Page 1 of 1 effective Date: September 1, 2018 Revision: Eleven 6.1.1.1.4 Primary Service Less Than or Equal to 10 kW AVAILABILITY This schedule is applicable to Delivery Service for non-residential purposes at primary voltage when such Delivery Service is to one Point of Delivery and measured through one Meter. TYPE OF SERVICE Delivery Service will be single or three-phase, 60 hertz, at a standard primary voltage. Delivery Service will be metered using Company's standard meter provided for this type of Delivery Service, unless Retail Customer is eligible for and chooses a competitive meter provider. Any meter other than the standard meter provided by Company will be provided at an additional charge. Where Delivery Service of the type desired is not available at the Point of Delivery, additional charges and special contract arrangements may be required prior to Delivery Service being furnished, pursuant to Section 6.1.2.2 of this Tariff. MONTHLY RATE I. Transmission and Distribution Charges: Customer Charge $6.28 per Retail Customer Metering Charge $18.59 per Retail Customer Transmission System Charge $0.00 per kWh Distribution System Charge $0.003273 per kWh II. Nuclear Decommissioning Charge: See Rider NDC per kWh III. Transmission Cost Recovery Factor: See Rider TCRF IV. Energy Efficiency Cost Recovery Factor: See Rider EECRF V. Competitive Meter Credit: See Rider CMC Other Charges or Credits VI. Rate Case Expense Surcharge: See Rider RCE per kWh VII. Remand Surcharge: See Rider RS per kWh Vill. Capital Structure Refund: See Rider CSR per kWh IX. Distribution Cost Recovery Factor: See Rider DCRF per kWh X. Tax Refund Factor: See Rider TRF per kWh NOTICE This rate schedule is subject to the Company's Tariff and Applicable Legal Authorities. -39- 73 Tariff for Retail Delivery Service Exhibit JMS-6 Oncor Electric Delivery Company LLC Page 9 of 24 6.1.1 Delivery System Charges Sheet: 1.5 Applicable: Entire Certified Service Area Page 1 of 2 Effective Date: September 1, 2018 Revision: Eleven 6.1.1.1.5 Primary Service Greater Than 10 kW — Distribution Line AVAILABILITY This schedule is applicable to Delivery Service for non-residential purposes at primary voltage when such Delivery Service is to one Point of Delivery and measured through one Meter. TYPE OF SERVICE Delivery Service will be single or three-phase, 60 hertz, at a standard primary voltage. Delivery Service will be metered using Company's standard meter provided for this type of Delivery Service, unless Retail Customer is eligible for and chooses a competitive meter provider. Any meter other than the standard meter provided by Company will be provided at an additional charge. Where Delivery Service of the type desired is not available at the Point of Delivery, additional charges and special contract arrangements may be required prior to Delivery Service being furnished, pursuant to 6.1.2.2 of this Tariff. MONTHLY RATE I. Transmission and Distribution Charges: Customer Charge $16.26 per Retail Customer Metering Charge $37.22 per Retail Customer Transmission System Charge See Demand $0.00 per NCP kW Determination $0.00 per 4CP kW Distribution System Charge $3.822031 per Distribution System billing kW II. Nuclear Decommissioning Charge: See Rider NDC per Distribution System billing kW III. Transmission Cost Recovery Factor: See Rider TCRF IV. Energy Efficiency Cost Recovery Factor: See Rider EECRF V. Competitive Meter Credit: See Rider CMC Other Charges or Credits VI. Rate Case Expense Surcharge: See Rider RCE per Distribution System billing kW VII. Remand Surcharge: See Rider RS per Distribution System billing kW VIII. Capital Structure Refund: See Rider CSR per Distribution System billing kW IX. Distribution Cost Recovery Factor: See Rider DCRF per Distribution System billing kW X. Tax Refund Factor: See Rider TRF per Distribution System billing kW -40- 74 Tariff for Retail Delivery Service Exhibit JMS-6 Oncor Electric Delivery Company LLC Page 10 of 24 6.1.1 Delivery System Charges Sheet: 1.5 Applicable: Entire Certified Service Area Page 2 of 2 Effective Date: September 1, 2018 Revision: Eleven COMPANY SPECIFIC APPLICATIONS At Company's option, locations where the electrical installation has multiple connections to Company's conductors, due to Company facilities limitations or design criteria, may be considered one Point of Delivery for billing purposes. DETERMINATION OF BILLING DEMAND FOR TRANSMISSION SYSTEM CHARGES Any Premises that has established an NCP kW of at least 700 kW in any previous billing month, or Retail Customers billed on 4CP kW prior to the effective date of this tariff, shall be billed on their 4CP kW pursuant to the Determination of 4CP kW provision shown below. DETERMINATION OF NCP kW The NCP kW applicable under the Monthly Rate section shall be the kW supplied during the 15 minute period of maximum use during the billing month. DETERMINATION OF 4CP kW The 4CP kW applicable under the Monthly Rate section shall be the average of the Retail Customer's integrated 15 minute demands at the time of the monthly ERCOT system 15 minute peak demand for the months of June, July, August and September of the previous calendar year. The Retail Customer's average 4CP demand will be updated effective on January 1 of each calendar year and remain fixed throughout the calendar year. Retail Customers without previous history on which to determine their 4CP kW will be billed at the applicable NCP rate under the "Transmission System Charge" using the Retail Customer's NCP kW. DETERMINATION OF BILLING DEMAND FOR DISTRIBUTION SYSTEM CHARGES DETERMINATION OF BILLING kW For loads whose maximum NCP kW established in the 11 months preceding the current billing month is less than or equal to 20 kW, the Billing kW applicable to the Distribution System Charge shall be the NCP kW for the current billing month. For all other loads, the Billing kW applicable to the Distribution System Charge shall be the higher of the NCP kW for the current billing month or 80% of the highest monthly NCP kW established in the 11 months preceding the current billing month (80% ratchet). The 80% ratchet shall not apply to Retail Seasonal Agricultural Customers. NOTICE This rate schedule is subject to the Company's Tariff and Applicable Legal Authorities. -41- 75 Tariff for Retail Delivery Service Exhibit JMS-6 Oncor Electric Delivery Company LLC Page 11 of 24 6.1.1 Delivery System Charges Sheet: 1.6 Applicable: Entire Certified Service Area Page 1 of 2 Effective Date: September 1, 2018 Revision: Eight 6.1.1.1.6 - Primary Service Greater Than 10 kW — Substation AVAILABILITY This schedule is applicable to Delivery Service taken directly from a Company -owned substation for non- residential purposes at primary voltage when such Delivery Service is to one Point of Delivery and measured through one Meter. TYPE OF SERVICE Delivery Service will be single or three-phase, 60 hertz, at a standard primary voltage. Delivery Service will be metered using Company's standard meter provided for this type of Delivery Service, unless Retail Customer is eligible for and chooses a competitive meter provider. Any meter other than the standard meter provided by Company will be provided at an additional charge. Where Delivery Service of the type desired is not available at the Point of Delivery, additional charges and special contract arrangements may be required prior to Delivery Service being furnished, pursuant to 6.1.2.2 of this Tariff. MONTHLY RATE I. Transmission and Distribution Charges: Customer Charge $152.08 per Retail Customer Metering Charge $250.00 per Retail Customer Transmission System Charge $0.00 per 4CP kW Distribution System Charge $0.489271 per Distribution System billing kW II. Nuclear Decommissioning Charge: See Rider NDC per Distribution System billing kW III. Transmission Cost Recovery Factor: See Rider TCRF per NCP kW or 4CP kW, as applicable IV. Energy Efficiency Cost Recovery Factor: See Rider EECRF V. Competitive Meter Credit: See Rider CMC Other Charges and Credits VI. Rate Case Expense Surcharge: See Rider RCE per Distribution System billing kW VII. Remand Surcharge: See Rider RS per Distribution System billing kW Vill. Capital Structure Refund: See Rider CSR per Distribution System billing kW IX. Distribution Cost Recovery Factor: See Rider DCRF per Distribution System billing kW X. Tax Refund Factor: See Rider TRF per Distribution System billing kW -42- 76 Tariff for Retail Delivery Service Exhibit JMS-6 Oncor Electric Delivery Company LLC _ Page 12 of 24 6.1.1 Delivery System Charges Sheet: 1.6 Applicable: Entire Certified Service Area Page 2 of 2 Effective Date: September 1, 2018 Revision: Eight COMPANY SPECIFIC APPLICATIONS At Company's option, locations where the electrical installation has multiple connections to Company's conductors, due to Company facilities limitations or design criteria, may be considered one Point of Delivery for billing purposes. DETERMINATION OF BILLING DEMAND FOR TRANSMISSION SYSTEM CHARGES Any Premises that has established an NCP kW of at least 700 kW in any previous billing month, or Retail Customers billed on 4CP kW prior to the effective date of this tariff, shall be billed on their 4CP kW pursuant to the Determination of 4CP kW provision shown below. DETERMINATION OF NCP kW The NCP kW applicable under the Monthly Rate section shall be the kW supplied during the 15 minute period of maximum use during the billing month. DETERMINATION OF 4CP kW The 4CP kW applicable under the Monthly Rate section shall be the average of the Retail Customer's integrated 15 minute demands at the time of the monthly ERCOT system 15 minute peak demand for the months of June, July, August and September of the previous calendar year. The Retail Customer's average 4CP demand will be updated effective on January 1 of each calendar year and remain fixed throughout the calendar year. Retail Customers without previous history on which to determine their 4CP kW will be billed at the applicable NCP rate under the "Transmission System Charge" using the Retail Customer's NCP kW. DETERMINATION OF BILLING DEMAND FOR DISTRIBUTION SYSTEM CHARGES DETERMINATION OF BILLING kW For loads whose maximum NCP kW established in the 11 months preceding the current billing month is less than or equal to 20 kW, the Billing kW applicable to the Distribution System Charge shall be the NCP kW for the current billing month. For all other loads, the Billing kW applicable to the Distribution System Charge shall be the higher of the NCP kW for the current billing month or 80% of the highest monthly NCP kW established in the 11 months preceding the current billing month (80% ratchet). The 80% ratchet shall not apply to Retail Seasonal Agricultural Customers. NOTICE This rate schedule is subject to the Company's Tariff and Applicable Legal Authorities. -43. 77 Tariff for Retail Delivery Service Exhibit JMS-6 Oncor Electric Delivery Company LLC Page 13 of 24 6.1.1 Delivery System Charges Sheet: 1.7 Applicable: Entire Certified Service Area Page 1 of 2 Effective Date: September 1, 2018 Revision: Eleven 6.1.1.1.7 Transmission Service AVAILABILITY This schedule is applicable to Delivery Service for non-residential purposes at transmission voltage when such Delivery Service is to one Point of Delivery and measured through one Meter. TYPE OF SERVICE Delivery Service will be three-phase, 60 hertz, at a standard transmission voltage. Delivery Service will be metered using Company's standard meter provided for this type of Delivery Service, unless Retail Customer is eligible for and chooses a competitive meter provider. Any meter other than the standard meter provided by Company will be provided at an additional charge. Where Delivery Service of the type desired is not available at the Point of Delivery, additional charges and special contract arrangements may be required prior to Delivery Service being furnished, pursuant to Section 6.1.2.2 of this Tariff. MONTHLY RATE I. Transmission and Distribution Charges: Customer Charge $162.98 per Retail Customer Metering Charge $258.27 per Retail Customer Transmission System Charge $0.00 per 4CP kW Distribution System Charge $0.255774 per Distribution System billing kW I1. Nuclear Decommissioning Charge: See Rider NDC per Distribution System billing kW III. Transmission Cost Recovery Factor: See Rider TCRF IV. Energy Efficiency Cost Recovery Factor: See Rider EECRF V. Competitive Meter Credit: See Rider CMC Other Charges or Credits VI. Rate Case Expense Surcharge: See Rider RCE per Distribution System billing kW VII. Remand Surcharge: See Rider RS per Distribution System billing kW Vlll. Capital Structure Refund: See Rider CSR per Distribution System billing kW IX. Distribution Cost Recovery Factor: See Rider DCRF per Distribution System billing kW X. Tax Refund Factor: See Rider TRF per Distribution System billing kW -44- 78 Tariff for Retail Delivery Service Exhibit JMS-6 Oncor Electric Delivery Company LLC Page 14 of 24 6.1.1 Delivery System Charges Sheet: 1.7 Applicable: Entire Certified Service Area Page 2 of 2 Effective Date: September 1, 2018 Revision: Eleven COMPANY SPECIFIC APPLICATIONS DETERMINATION OF BILLING DEMAND FOR TRANSMISSION SYSTEM CHARGES DETERMINATION OF 4CP kW The 4CP kW applicable under the Monthly Rate section shall be the average of the Retail Customer's integrated 15 minute demands at the time of the monthly ERCOT system 15-minute peak demand for the months of June, July, August and September of the previous calendar year. Retail Customers without previous history on which to determine their 4CP kW will be billed based on estimated 4CP kW, in accordance with the following procedures: (a) Retail Customers having IDR data for fewer than 4CP kW, but at least two CP kW, will be billed based on the average of the actual CP kW, so long as the CP kW are representative of the Retail Customer's expected load, as derived from engineering estimates. If the CP kW are not representative of the expected load, the estimated 4CP kW will be set based on mutual agreement between the Retail Customer and the Company. (b) Retail Customers that do not have at least two CP kW will be billed by estimating the Retail Customer's 4CP kW demand by applying a class coincidence factor to the Retail Customer's NCP kW, using the formula: Estimated 4CP kW = (NCP kW * TCCF) where: NCP kW is the highest 15-minute integrated demand of an individual Retail Customer served at transmission voltage during the month; and TCCF is the transmission class coincidence factor for the months June, July, August, and September calculated from the Company's most recent UCOS proceeding using the following formula: TCCF = E Class CP kW for June. July, August, September E Class NCP kW for June, July, August, September Where: Class CP kW is the transmission voltage rate class' 15-minute demand at the time of the ERCOT CP and Class NCP kW is the transmission voltage class' maximum 15-minute demand during a month. DETERMINATION OF BILLING DEMAND FOR DISTRIBUTION SYSTEM CHARGES DETERMINATION OF BILLING kW The Billing kW applicable to the Distribution System Charge shall be the higher of the NCP kW for the current billing month or 80% of the highest monthly NCP kW established in the 11 months preceding the current billing month (80% ratchet). The 80% ratchet shall not apply to Retail Seasonal Agricultural Customers. NOTICE This rate schedule is subject to the Company's Tariff and Applicable Legal Authorities. -45- 79 Tariff for Retail Delivery Service Exhibit JMS-6 Oncor Electric Delivery Company LLC Page 15 of 24 .t Delivery System Charges Sheet: 1.8 Applicable: Entire Certified Service Area Page 1 of 9 Effective Date: September 1, 2018 Revision: Thirteen 6.1.1.1.8 Lighting Service Street Lighting Service AVAILABILITY Applicable to Competitive Retailer for street lighting, pedestrian walkway lighting, and overhead sign lighting service to governmental entities in areas served by Company. Overhead sign lighting is available only under the provisions of Schedule D of the Monthly Rate - Unmetered Facilities or the Monthly Rate - Metered Facilities - Non -Company -Owned provisions or the appropriate Secondary Service or Primary Service Rate Schedule. TYPE OF SERVICE Single or three phase, 60 hertz, at any of the Company's standard secondary or primary service voltages as required by Competitive Retailer. Where existing distribution facilities are not adjacent to the point of delivery, additional charges and special contract arrangements may be required prior to its being furnished. If service is provided at primary voltage, Company may at its option meter service on the secondary side of the governmental entity's transformers and adjust for transformer losses in accordance with Company's Tariff for Retail Delivery Service. MONTHLY RATE I. Unmetered Facilities Points of Delivery (POD) Charge: $58.00 per governmental entity served by the Competitive Retailer Lamp Watts Lumens kWh Schedule Rectangular* Post -Top* A B* C* and D Mercury Vapor* 175 7,900 70 $10.78 $15.14 $1.38 $27.15 $10.35 (See Note 1) 400 21,000 150 $11.82 $19.90 $2.79 N.A. N.A. 1,000 63,000 370 $14.47 $23.46 $6.66 N.A. N.A. Sodium Vapor 100 9,500 40 $10.51 $15.18 $0.86 $26.65 $10.06 150 16,000 70 $11.00 $17.02 $1.38 N.A. N.A. 200 22,000 80 $11.11 $19.77 $1.57 N.A. N.A. 250 27,500 100 $11.28 $19.96 $1.91 $26.49 N.A. 400 50,000 160 $12.55 $22.50 $2.97 N.A. N.A. 1,000* 140,000 375 $14.23 $23.44 $6.75 N.A N.A. Metal Halide * 150 14,000 65 $12.63 N.A $1.30 N.A. N.A. 175 (see note 2 14,000 65 $12.63 $19.75 $1.30 N.A. N.A. 250 25,000 100 $14.31 $22.96 $1.91 N.A. N.A. 400 36,000 160 $14.61 $22.80 $2.97 $36.86 N.A. 1,000* 110,000 370 $17.41 $25.56 $6.66 $40.41 N.A. Other: Lamp Watts Lumens kWh Incandescent* All $10.51 Historical* Mercury Vapor 175 7,900 70 $10.77 Sodium Vapor 100 9,500 40 $10.51 Sodium Vapor 150 16,000 70 $11.00 Metal Halide 175 14,000 65 $12.68 * Closed to new street lighting installations. -46- 80 Tariff for Retail Delivery Service Exhibit JMS-6 Oncor Electric Delivery Company LLC Page 16 of 24 6.1.1 Delivery System Charges Sheet: 1.8 Applicable: Entire Certified Service Area Page 2 of 9 Effective Date: September 1, 2018 Revision: Thirteen LED Street Liqhtinq Options Schedule A LED Street Lighting Lamp Wattage Range kWh Schedule D Cobra Head Rectangular 9 Post — To P Historical (See Note 3) (See Note 4) (See Note 4) (See Note 4) LED Street Lighting LED 0 - 55 15 $11.83 $25.87 $14.30 $29.42 $0.42 LED 56 - 100 30 $12.19 $26.70 $14.66 $30.59 $0.68 LED 1040 45 $12.98 $27.99 N/A N/A $0.95 LED j 81� 55 $13.56 N/A N/A N/A $1.12 LED 1265 80 $15.66 N/A N/A N/A $1.57 Note 1: Mercury Vapor options are closed to new installations. Company will continue to maintain existing Mercury Vapor lamps as long as replacement lamps are available. When replacement lamps are no longer available or existing fixtures are damaged or fail and must be replaced, Retail Customer will have the option to switch its service to the lamp type as specified in Mercury Vapor and Metal Halide Fixture Replacement Schedule below or to cancel service at no cost. Existing 250 Watt Mercury Vapor lighting will be billed at same rate as 175 Watt Mercury Vapor. Note 2: Metal Halide option is closed to new installations. Company will continue to maintain existing metal halide lamps as long as replacement lamps are available. When replacement lamps are no longer available or existing fixtures are damaged or fail and must be replaced, Retail Customer will have the option to switch its service to the lamp type as specified in Mercury Vapor and Metal Halide Fixture Replacement Schedule below or to cancel service at no cost. Note 3: Schedule A Cobra Head LED Street Lighting applies to: Company installed, owned, operated, and maintained street lights mounted on wood poles with a cobra head arm and served overhead. Company installed, owned, operated, and maintained street lights mounted on wood, steel, or ornamental poles of a type normally used by Company, and served overhead or underground, and Retail Customer has contributed to Company an amount equivalent to the difference between the total installed cost of such street lighting and the Standard Allowance for the Cobra Head Street Lighting Option. Note 4: Schedule A Rectangular, Post -Top, and Historical LED Street Lighting applies to: Company installed, owned, operated, and maintained street lights mounted on wood, steel, or ornamental poles of a type normally used by Company, and served overhead or underground, and Retail Customer has contributed to Company an amount equivalent to the difference between the total installed cost of such street lighting and the Standard Allowance for the applicable LED Street Lighting Option. II. Nuclear Decommissioning Charge III. Transmission Cost Recovery Factor: IV. Energy Efficiency Cost Recovery Factor: Other Charges or Credits V. Rate Case Expense Surcharge: VI. Remand Surcharge: VII. Capital Structure Refund: Vlll. Distribution Cost Recovery Factor: IX. Tax Refund Factor: See Rider NDC per kWh See Rider TCRF See Rider EECRF See Rider RCE per kWh See Rider RS per kWh See Rider CSR per kWh See Rider DCRF per kWh See Rider TRF per kWh -47- s1 Tariff for Retail Delivery Service Exhibit JMS-6 Oncor Electric Delivery Company LLC Page 17 of 24 6.1.1 Delivery System Charges Sheet: 1.8 Applicable: Entire Certified Service Area Page 3 of 9 Effective Date: September 1, 2018 Revision: Thirteen DEFINITIONS Pedestrian Walkway Lighting: Pedestrian walkway lighting is used to illuminate sidewalks along municipally -owned streets and roads and within municipally -owned parks and recreational areas. Standard Allowance: An amount equal to the average installed cost of a street light of a type normally used by Company and served either overhead or underground. For LED Street Lighting Options, the standard allowance is equal to the installed cost of the following: Cobra Head - an LED street light mounted on a 35' wooden pole, with a cobra head arm, served overhead. Rectangular - a Rectangular LED street light mounted on a 20' steel anchor -based pole, served underground. Post -Top - a Post -Top LED street light mounted on a 20' fiberglass pole, served underground. Historical - a Historical LED street light mounted on a 11' aluminum anchor -based historical pole, served underground. Repair and Maintenance: Repair consists of the repair or replacement of any individual component associated with the pole or fixture that allows the facility to operate safely and effectively. Maintenance includes photocell replacement and cleaning of lens at the time of bulb replacement. Repair and Maintenance do not include painting or straightening of poles unless Company determines that safety or operation is adversely affected. Replacement: Replacement includes only the complete replacement of the street light luminaire and pole caused by impacts related to weather, construction, or traffic accidents. For street lights installed after the effective date of this revision, Schedules A and D are defined as follows: Schedule A applies to Company installed, owned, operated, and maintained street lights of the types and sizes provided in the chart under Section I. Unmetered Facilities. Schedule D applies to Retail Customer owned, operated and maintained street lights and overhead sign lights or where such lights are installed by a governmental entity for the use of Retail Customer, and Company supplies distribution service to Retail Customer for the operation of the street lights or overhead sign lights. Company does not provide maintenance to Schedule D lights in accordance with this tariff. For street lights installed prior to the effective date of this revision, Schedules A, B, C, and D are defined as follows: Schedule A applies to: Company installed, owned, operated, and maintained street lights mounted on wood poles and served overhead. Company installed, owned, operated, and maintained street lights mounted on wood, steel, or ornamental poles of a type normally used by Company, and served overhead or underground, and Retail Customer has contributed to Company an amount equivalent to the difference between the total installed cost of such street lighting and the total installed cost of an equivalent lighting system mounted on wood poles and served overhead. Schedule B applies to: Company installed, owned, operated, and maintained street lights mounted on steel or other ornamental poles of a type normally used by Company and served overhead. If the number of steel and/or other ornamental poles exceeds the number of such poles on which lights are mounted, there will be an additional charge of $5.34 per month for each such excess pole. Where two street lights with lamps of the same size are mounted on the same steel and/or other ornamental pole, Schedule B applies to one of the lights and Schedule A to the other. Company installed, owned, operated, and maintained street lights mounted on steel or other ornamental poles of a type normally used by Company and served underground, and Retail Customer has contributed to Company an amount equivalent to the difference between the total installed cost of the underground circuits serving the street lights and the total installed cost of overhead circuits. Where two street lights with lamps of the same size are mounted on the same steel and/or other ornamental pole, Schedule B applies to one of the lights and Schedule A to the other. Schedule C applies to: Street lights installed for the use of Retail Customer by Retail Customer or by a governmental subdivision. All equipment replacement and maintenance is performed by Retail Customer or the governmental subdivision. Company provides lamp replacement service only which includes lamp and labor (unless otherwise requested in writing by Retail Customer). -48- 82 Tariff for Retail Delivery Service Exhibit JMS-6 Oncor Electric Delivery Company LLC Page 18 of 24 6.1.1 Delivery System Charges Sheet: 1.8 Applicable: Entire Certified Service Area Page 4 of 9 Effective Date: September 1, 2018 Revision: Thirteen Company -owned street lights mounted on steel or other ornamental poles of a type not normally used by Company, and Retail Customer has contributed to Company an amount equivalent to the entire construction cost of the street lighting facilities including luminaires and circuits. Company operates all street lights under Schedule C (must be of a type suitable for use with the lamp sizes provided for herein) and makes all normal lamp replacements which includes lamp and labor at its expense. All other maintenance will be billed to Retail Customer on the basis of actual costs including appropriate overhead expenses. Schedule D applies to: Retail Customer operated and maintained street lights and overhead sign lights or where such lights are installed by a governmental subdivision for the use of Retail Customer, and Company supplies distribution service to Retail Customer for the operation of the street lights or overhead sign lights. CONVERSION OR REPLACEMENT OF EXISTING FUNCTIONAL FACILITIES AT RETAIL CUSTOMER'S REQUEST Company will convert or replace existing Company -owned, functional facilities (size or type of luminaire) to a different Company -offered size or type of luminaire upon request of and payment by Retail Customer of $82 for each luminaire, to cover the cost of removal of existing facilities and an amount equal to the unamortized investment in the converted or replaced facilities, less the salvage value of the existing facilities. If the salvage value of the converted or replaced facilities is less than $0, this negative salvage value will be treated as additional cost to be paid by the Retail Customer. Installation of new facilities requested by Retail Customer will be performed pursuant to the Standard Allowance described above. Company will limit the conversion of fully operable mercury vapor, sodium vapor, and metal halide street lights to any LED Street Lighting Options to a maximum of 10,000 street lights per year. Additional conversions will be at the sole discretion of the Company. Customer Requested Removal of Existing Facilities Company will remove existing facilities upon request by Retail Customer if Customer pays an amount pursuant to Section 6.1.2.1, Charge No. SD16. SPECIAL CONDITIONS For billing purposes the monthly street lighting and overhead sign lighting burning hours are 333 hours per month and all connections and disconnections are assumed to have occurred at the beginning of the current month's billing period. Retail Customer -owned unmetered lamps other than those of the lamp sizes shown under Schedule D existing prior to the effective date of this tariff are billed under the metered rate and the amount of monthly energy is determined by multiplying the connected load (including ballast) by the number of burning hours. New Service provided to customer -owned street light other than the types and sizes provided in Schedule D will be provided under the appropriate Secondary Service or Primary Service Rate Schedule. Company reserves the right to discontinue service at locations where excessive maintenance and/or lamp replacement occur, or Company may charge Retail Customer for such maintenance and/or lamp replacements. Company makes all connections and disconnections to its distribution system. Company -owned, operated, and maintained lighting facilities shall be installed in accordance with National Electrical Safety Code standards. AGREEMENT An Agreement for Street Lighting Service with a term of not less than ten years is required. NOTICE This rate schedule is subject to the Company's Tariff and Applicable Legal Authorities. -49- 83 Tariff for Retail Delivery Service Exhibit JMS-6 Oncor Electric Delivery Company LLC Page 19 of 24 6.1.1 Delivery System Charges Sheet: 1.8 Applicable: Entire Certified Service Area Page 5 of 9 Effective Date: September 1, 2018 Revision: Thirteen MONTHLY RATE I. Metered Facilities — Non -Company Owned Applicable for distribution service supplied at one point of delivery and measured through one meter to Retail Customer owned, operated and maintained street and highway lighting, overhead sign lighting, and incidental safety lighting equipment which operates same hours as normal street lighting. Customer Charge $3.62 per Retail Customer Metering Charge $13.04 per Retail Customer Distribution System Charge $0.016984 per kWh 11. Nuclear Decommissioning Charge: See Rider NDC per kWh Ill. Transmission Cost Recovery Factor: See Rider TCRF IV. Energy Efficiency Cost Recovery Factor: See Rider EECRF V. Competitive Meter Credit: See Rider CMC Other Charges or Credits VI. Rate Case Expense Surcharge: See Rider RCE per kWh VII. Remand Surcharge See Rider RS per kWh VII. Capital Structure Refund: See Rider CSR per kWh VIII. Distribution Cost Recovery Factor: See Rider DCRF per kWh IX. Tax Refund Factor: See Rider TRF per kWh MONTHLY RATE I. Metered Facilities - Company -Owned (Closed to new installations) Customer Charge $3.62 per Retail Customer Metering Charge $13.04 per Retail Customer Distribution System Charge $0.116984 per kWh 11. Nuclear Decommissioning Charge: See Rider NDC per kWh III. Transmission Cost Recovery Factor: See Rider TCRF IV. Energy Efficiency Cost Recovery Factor: See Rider EECRF V. Competitive Meter Credit: See Rider CMC Other Charges or Credits VI. Rate Case Expense Surcharge: See Rider RCE per kWh -50- 84 Tariff for Retail Delivery Service Exhibit JMS-6 Oncor Electric Delivery Company LLC Page 20 of 24 6.1.1 Delivery System Charges Sheet: 1.8 Applicable: Entire Certified Service Area Page 6 of 9 Effective Date: September 1, 2018 Revision: Thirteen VII. Remand Surcharge VII. Capital Structure Refund: Vill. Distribution Cost Recovery Factor: IX. Tax Refund Factor: See Rider RS per kWh See Rider CSR per kWh See Rider DCRF per kWh See Rider TRF per kWh MERCURY VAPOR AND METAL HALIDE FIXTURE REPLACEMENT SCHEDULE For Company -owned lights, when existing mercury vapor or metal halide fixtures require replacement, Company will make such replacements with comparable high pressure sodium vapor or LED Cobra Head lighting at no cost, as specified below: Existing Mercury Vapor Lighting : Sodium Vapor Replacement: Comparable LED Replacement: Wattage Lumens kWh Wattage Lumens kWh Wattage Range kWh 175 7,900 70 100 9,500 40 0 — 55 15 400 21,000 150 200 22,000 80 101 — 140 45 1,000 63,000 370 400 50,000 160 181 —265 80 Existing Metal Halide Lighting : Wattage Lumens Wattage Sodium Vapor Replacement: Wattage Lumens kWh Comparable LED Replacement: Wattage Range kWh 150 14,000 65 150 16,000 70 56 — 100 30 175 14,000 65 150 16,000 70 56 — 100 30 250 25,000 100 250 27,500 100 141 — 180 55 400 36,000 160 400 50,000 160 181 — 265 80 1,000 110,000 370 400 50,000 160 181 —265 80 Upon replacement, Retail Customer will be billed at the applicable facilities charge and associated kWh usage for the replacement lighting. Upon request of the Retail Customer, Company will convert or replace existing mercury vapor or metal halide lighting to street lighting options other than those indicated above, as stated in "CONVERSION OR REPLACEMENT OF EXISTING FACILITIES." -51- 85 Tariff for Retail Delivery Service Exhibit JMS-6 Oncor Electric Delivery Company LLC Page 21 of 24 6.1.1 Delivery System Charges Sheet: 1.8 Applicable: Entire Certified Service Area Page 7 of 9 Effective Date: September 1, 2018 Revision: Thirteen Outdoor Lighting Service (CLOSED) AVAILABILITY Applicable to Competitive Retailers for unmetered lighting service supplied exclusively to one or more existing outdoor lamps as specified below operating automatically from dusk to dawn. Not applicable to street lighting. MONTHLY RATE I. Unmetered Facilities Point of Delivery (POD) Charge: $1.30 per premise. Guard Lights Type Watts kWh Lumens Facilities Charge Mercury Vapor 175 70 7,900 $6.88 (See Note 1) 400 150 21,000 $10.38 Sodium Vapor 100 40 9,500 $6.54 200 80 22,000 $9.21 LED (See Note 2) 0-55 15 Not Applicable $10.63 56 - 100 30 $12.19 101 - 140 45 $12.98 141 - 180 55 $13.56 181 - 265 80 $15.66 Flood Lights Type Watts kWh Lumens Facilities Charge Metal Halide 175 65 14,000 $8.99 250 100 25,000 $12.19 400 160 36,000 $14.59 1000 370 110,000 $25.34 Sodium Vapor 100 40 9,500 $8.94 200 80 22,000 $9.21 250 100 27,000 $11.35 400 160 50,000 $14.44 1000 375 140,000 $26.22 LED 0-55 15 Not Applicable $13.27 56 - 100 30 $14.23 101 - 140 45 $14.86 141 - 180 1 55 $15.54 181 - 265 80 $16.44 Note 1: Company will continue to maintain existing Mercury Vapor and Metal Halide installations as long as replacement lamps are available. As existing fixtures are damaged or fail and must be replaced, Retail Customer will have the option to switch its service to another lamp type as specified in Mercury Vapor and Metal Halide Fixture Replacement Schedule below or cancel service at no cost. Note 2: The 0-55W LED Guard Light is an open bowl LED light. The LED Guard Lights at wattages greater than 55W are LED Cobra Head Street Lights. -52- 86 Tariff for Retail Delivery Service Exhibit JMS-6 Oncor Electric Delivery Company LLC Page 22 of 24 6.1.1 Delivery System Charges Sheet: 1.8 Applicable: Entire Certified Service Area Page 8 of 9 Effective Date: September 1, 2018 Revision: Thirteen II. Nuclear Decommissioning Charge: See Rider NDC per kWh III. Transmission Cost Recovery Factor: See Rider TCRF IV. Energy Efficiency Cost Recovery Factor: See Rider EECRF V. Competitive Meter Credit: See Rider CMC Other Charges or Credits VI. Rate Case Expense Surcharge: See Rider RCE per kWh VII. Remand Surcharge See Rider RS per kWh VII. Capital Structure Refund: See Rider CSR per kWh Vill. Distribution Cost Recovery Factor: See Rider DCRF per kWh IX. Tax Refund Factor: See Rider TRF per kWh Extra Spans: Plus $2.85 per span of secondary line installed hereunder in excess of one span per light. MERCURY VAPOR AND METAL HALIDE FIXTURE REPLACEMENT SCHEDULE When existing mercury vapor or metal halide fixtures require replacement, Company will make such replacements with comparable high pressure sodium vapor or LED lighting at no cost as specified below: Existing Mercury Vapor Lighting : Wattage Lumens kWh Sodium Vapor Replacement: Wattage Lumens kWh Comparable LED Replacement: Wattage Range kWh 175 7,900 70 100 9,500 40 0 — 55 15 400 21,000 150 200 22,000 80 101 — 140 45 Existing Metal Halide Lighting : Wattage Lumens kWh Sodium Vapor Replacement: Wattage Lumens kWh Comparable LED Replacement: Wattage Range kWh 175 14,000 65 150 16,000 70 56 —100 30 250 25,000 100 250 27,500 100 141 —180 55 400 36,000 160 400 50,000 160 181 — 265 80 1,000 110,000 370 400 50,000 160 181 — 265 80 Retail Customer is not limited to the Comparable LED Replacement option listed above, but may choose from any LED Guard Light or Flood Light option shown in the Outdoor Lighting table. Upon replacement, Retail Customer will be billed at the applicable facilities charge and associated kWh usage for the replacement lighting. MAINTENANCE OF FACILITIES Company will maintain all facilities incidental to providing this service, including replacement of burned -out lamps. Company reserves the right to discontinue service at locations where excessive maintenance and/or lamp replacements are, in Company's sole judgment, likely to or actually do occur. REMOVAL OF EXISTING FACILITIES Except as specified above, Company will replace existing Company -owned luminaires with any of the outdoor lighting options above or remove the existing luminaire upon request of and payment by Retail Customer in accordance with the Company's Standard Discretionary Service Charge, SD15 — Security Light Removal, for each luminaire to cover the labor cost of removal and Company's average unamortized investment in the existing luminaire. This charge is applicable to all replacements whether or not an outdoor lighting service is active or inactive or a customer change has taken or is taking place. -53- 87 Tariff for Retail Delivery Service Exhibit JMS-6 Oncor Electric Delivery Company LLC Page 23 of 24 6.1.1 Delivery System Charges Sheet: 1.8 Applicable: Entire Certified Service Area Page 9 of 9 Effective Date: September 1, 2018 Revision: Thirteen NOTICE This rate schedule is subject to the Company's Tariff and Applicable Legal Authorities. -54- 88 Exhibit JMS-6 Tariff for Retail Delivery Service Page 24 of 24 Oncor Electric Delivery Company LLC 6.1.1 Delivery System Charges Sheet: 6.5 Applicable: Entire Certified Service Area Page 1 of 1 Effective Date: September 1, 2018 Revision: One 6.1.1.6.5 Rider RS — Remand Surcharge AVAILABILITY Applicable to all Retail Customers receiving Delivery Service under one of the Company's Rate Schedules in the Tariff for Retail Delivery Service for recovery of remanded expenses approved in Docket No. 46884. Rider RS shall remain in effect until the approved amount of $25,868,042 has been billed (which is estimated to be August 31, 2018). NET MONTHLY BILL AMOUNT The RS amount for each of the Company's applicable retail rate schedules is as follows: Rate Schedule Residential Service Secondary Service Less than or Equal to 10 kW Secondary Service Greater than 10 kW Primary Service Less than or Equal to 10 kW RS $ 0.000332 per kWh $ 0.000293 per kWh $ 0.100448 per Distribution System Billing kW $ 0.000146 per kWh Primary Service Greater than 10 kW — Distribution Line $ 0.077962 per Distribution System Billing kW Primary Service Greater than 10 kW - Substation Transmission Service Lighting Service $ 0.055936 per Distribution System Billing kW $ 0.059342 per Distribution System Billing kW $ 0.000464 per kWh NOTICE This Rate Schedule is subject to the Company's Tariff and Applicable Legal Authorities. -55- 89 Exhibit JMS-7 TARIFF FOR TRANSMISSION SERVICE Page 1 of 6 ONCOR ELECTRIC DELIVERY COMPANY LLC 3.0 Rate Schedules Sheet: 1 Applicable: Wholesale Transmission Service Revision: Twenty -Six Effective Date: July 1, 2018 PaEe 1 of 2 3.0 Rate Schedules 3.1 Rate NTS - Network Transmission Service Application Applicable, on a non-discriminatory basis, to all DSPs receiving service over Company's electric facilities rated at 60 kV and above, for delivery of electric power and energy from Generation Facilities to DSPs. This rate schedule is not applicable to service offered by the Company under another rate schedule. Type of Service Three phase, 60 hertz, and at Company's standard transmission voltages. Monthly Charge Monthly charges are determined by multiplying one -twelfth of the Annual Access Rate by the monthly DSP Utility System Demand. Annual Access Rate $12,879.383079/MW DSP's Utility System Demand is the average of the demand, expressed in kilowatts, of the DSP's retail load for the 15-minute interval that is coincident with the ERCOT system coincident peak demand for the months of June, July, August and September in the preceding calendar year. The above rate is being implemented in accordance with the Commission's interim transmission rate update provisions of 16 Tex. Admin. Code § 25.192(h)(1). Pricing for Transmission service for Exports from ERCOT Export transactions are subject to Company's most recently approved FERC Tariff for Transmission Service To, From and Over Certain Interconnections ("TFO Tariff'), which may be accessed at http://www.oncor.com by going to "About Oncor" and then "Billing and Rate Schedules". On -peak rates apply to the months of June — September and off-peak rates apply to all other months. The export rates for Oncor are as follows: On -Peak Rate $/MW Off -Peak Rate $/MW Monthly $3,219.845770 $1,073.281923 Weekly $743.041331 $247.680444 Dail $105.857943 $35.285981 Hourly $4.410748 $1.470249 Payment Company must receive payment by the 35th calendar day after the date of issuance of the bill, unless the Company and the DSP agree on another mutually acceptable deadline, in accordance with applicable Commission Substantive Rules. Interest shall accrue on any unpaid amount in accordance with applicable Commission Substantive Rules. Agreement A Transmission Service Agreement is required. The applicable Interconnection Agreement is required for DSPs directly connected to Company facilities. -56- 90 Exhibit JMS-7 TARIFF FOR TRANSMISSION SERVICE Page 2 of 6 ONCOR ELECTRIC DELIVERY COMPANY LLC 3.0 Rate Schedules Sheet: 1 Applicable: Wholesale Transmission Service Revision: Twenty -Six Effective Date: July 1, 2018 Page 2 of 2 Notice Service hereunder is subject to the orders of regulatory bodies having jurisdiction and to the provisions of Company's Tariff for Transmission Service. -57- 91 TARIFF FOR TRANSMISSION SERVICE ONCOR ELECTRIC DELIVERY COMPANY LLC Exhibit JMS-7 Page 3 of 6 3.0 Rate Schedules Sheet: 2 Applicable: Wholesale Transmission Service Revision: Seven Effective Date: September 1, 2018 Page 1 of 1 3.2 Rate XFMR - Wholesale Substation Service Application Applicable, to all WDSCs for transformation of electric power and energy from one of Company's standard transmission voltages to one of Company's standard voltages below 60 kV, for delivery of electric power and energy from Generation Facilities to WDSCs. This rate schedule is not applicable to service offered by the Company under another rate schedule. WDSCs taking service under this rate schedule are not subject to Rate DLS. Applicable to all transformation service supplied in connection with the delivery of electric power and energy to a Point of Interconnection, measured through one meter or through separate channels of a multi -channel meter. Type of Service Three phase, 60 hertz, and at Company's standard voltages. Where service of the type desired by WDSC is not already available at the Point of Interconnection, additional charges and special contract arrangements between the Company and WDSC may be required prior to its being furnished. Monthly Rate Customer Charge $ 106.22 per Point of Interconnection Metering Charge $ 253.41 per Point of Interconnection Distribution System Charge $ 0.264280 per kW, billed at Annual Demand (kW) The monthly bill for Wholesale Substation Service is the sum of the Customer Charge, Metering Charge, the product of the Distribution System Charge and the WDSC's Annual Demand (kW), and any applicable riders. Annual Demand (kW) is the highest 15-minute kW recorded at the Point of Interconnection in the 12-month period ended with the current month. Payment Company must receive payment by the 35th calendar day after the date of issuance of the bill, unless the Company and the WDSC agree on another mutually acceptable deadline, in accordance with applicable Commission Substantive Rules. Interest shall accrue on any unpaid amount in accordance with applicable Commission Substantive Rules. Agreement A Transmission Service Agreement is required. The applicable Interconnection Agreement is required. Notice Service hereunder is subject to the orders of regulatory bodies having jurisdiction and to the provisions of Company's Tariff for Transmission Service. WDSC must also comply with Oncor's Facility Connection Requirements -58- 92 Exhibit JMS-7 TARIFF FOR TRANSMISSION SERVICE Page 4 of 6 ONCOR ELECTRIC DELIVERY COMPANY LLC 3.0 Rate Schedules Sheet: 3 Applicable: Wholesale Transmission Service Revision: Seven Effective Date: September 1, 2018 Page 1 of 1 3.3 Rate DLS - Wholesale Distribution Line Service Application Applicable to all WDSCs receiving distribution service supplied at one Point of Interconnection and measured through one meter necessary to support the transmission of energy for purposes of resale in accordance with Commission Substantive Rules 25.5, 25.191-25.199, 25.200-25.203 and 25.501. This rate schedule is not applicable to service offered by the Company under another rate schedule. WDSCs taking service under this rate schedule are not subject to Rate XFMR. Type of Service Three phase, 60 hertz, and at Company's standard primary distribution voltages (below 60 kV). Monthly Rate Customer Charge $ 81.31 per Point of Interconnection Metering Charge $ 227.56 per Point of Interconnection Distribution System Charge $ 0.774598 per Billing kW The monthly bill for Wholesale Distribution Line Service is the sum of the Customer Charge, Metering Charge, the product of the Distribution System Charge and the WDSC's Billing kW, and any applicable riders. The Billing kW applicable to the Distribution System Charge shall be the higher of the NCP kW for the current billing month or 80% of the highest monthly NCP kW established in the 11 months preceding the current billing month (80% ratchet). Payment Company must receive payment by the 35th calendar day after the date of issuance of the bill, unless the Company and the WDSC agree on another mutually acceptable deadline, in accordance with applicable Commission Substantive Rules. Interest shall accrue on any unpaid amount in accordance with applicable Commission Substantive Rules. Definitions The NCP kW applicable under the Monthly Rate section shall be the kW supplied during the 15 minute period at maximum use during the billing month. Agreement A Transmission Service Agreement is required. The applicable Interconnection Agreement is required. Notice Service hereunder is subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Transmission Service. WDSC must also comply with Oncor's Facility Connection Requirements. -59- 93 Exhibit JMS-7 Page 5 of 6 TARIFF FOR TRANSMISSION SERVICE -- - - - ONCOR ELECTRIC DELIVERY COMPANY LLC 3.0 Rate Schedules Sheet: 6 Applicable: Wholesale Transmission Service Revision: One Effective Date: September 1, 2018 Page 1 of 1 3.6 Rider WRS — Wholesale Remand Surcharge Application Applicable to all DSPs receiving Network Transmission Service and WDSCs receiving Wholesale Substation Service and Wholesale Distribution Line Service for recovery of cash working capital approved in Docket No. 46884. Rider WRS shall remain in effect for one month from November 27, 2017 for Network Transmission Service customers and shall remain in effect for Wholesale Substation Service customers and Wholesale Distribution Line Service customers, until the approved amount of $6,366 has been billed (which is estimated to be 12 months from November 27, 2017). Monthly Surcharge The WRS surcharge for each of the Company's applicable wholesale rate schedules is as follows: Rate Schedule Network Transmission Service Wholesale Substation Service Wholesale Distribution Line Service WRS Surcharge $5.929588 per MW, billed at DSP Utility System Demand $0.000807 per kW, billed at Annual Demand (kW) $0.005312 per Billing kW DSP Utility System Demand is the 2016 4CP demand, as approved in PUCT Docket No. 46604. Annual Demand (kW) is the highest 15-minute kW recorded at the Point of Interconnection in the 12-month period ended with the current month. The Billing kW applicable to the Distribution System Charge shall be the higher of the NCP kW for the current billing month or 80% of the highest monthly NCI) kW established in the 11 months preceding the current billing month (80% ratchet). Notice This Rate Schedule is subject to the Company's Tariff for Transmission Service and Applicable Legal Authorities. -60- 94 TARIFF FOR TRANSMISSION SERVICE ONCOR ELECTRIC DELIVERY COMPANY LLC Exhibit JMS-7 Page 6of6 3.0 Rate Schedules Sheet: 9 Applicable: Wholesale Transmission Service Revision: Original Effective Date: July 1, 2018 Page 1 of 1 3.9 Rider WTRF-N — Wholesale Tax Refund Factor (NTS) Application Applicable to all DSPs receiving Network Transmission Service for refund of amount collected for federal income taxes in excess of current rate, collected in the Company's approved Rate NTS from the effective date of the reduced tax rate, January 1, 2018, through March 26, 2018. Company's Rate NTS approved in Docket No. 47988 incorporates the reduced tax rate and became effective March 27, 2018. Rider WTRF-N shall remain in effect for one month from July 1, 2018 for Network Transmission Service customers. Monthly Credit The WTRF-N credit for the Company's Wholesale Rate NTS schedule is as follows: Rate Schedule Network Transmission Service WTRF-N Surcharge ($181.639170) per MW, billed at DSP Utility System Demand DSP Utility System Demand is the 2017 4CP demand, as approved in PUCT Docket No. 47777. Notice This Rate Schedule is subject to the Company's Tariff for Transmission Service and Applicable Legal Authorities. -61- 95 Exhibit 1MS-8 Page 1 of 3 Schedule A Page 1 of 1 Amended 2/5/18 and 3/27/18 ONCOR ELECTRIC DELIVERY COMPANY LLC Interim Update of Wholesale Transmission Cost of Service As of December 31, 2017 Sponsor: J. Michael Sherburne Balance Approved Balance Approved per per Docket 46957 Line Docket 46957 Final Final Order, Restated Interim Annual Interim Revenue No. Description Order, for 21 % FIT Rate Increase Requirement Schedule Reference 35% FIT Rate (1) (2) (3) _ (1) + (2) 1 Operation & Maintenance $ 148,102,424 $ 148,102,424 $ - $ 148,102,424 Docket 46957 2 Depreciation and Amortization 219,906,015 219,906,015 18,487,838 238,393,853 Schedule E-1 3 Taxes Other Than Income Taxes 85,298,597 85,123,414 6,163,355 91,286,769 Schedule E-2 4 Federal Income Taxes 101,687,436 49,898,141 4,693,469 54,591,610 Schedule E-3 5 Return on Rate Base 339,958,933 339,948,278 31,550,451 371,498,729 Schedule B 6 Total Revenue Requirement 894,953,405 842,978,272 60,895,113 903,873,385 7 Other Revenues (22,462,012) (22,462,012) - (22,462,012) Docket 46957 8 Total $ 872,491,393 $ 820,516,260 $ 60,895,113 $ 881,411,373 9 ERCOT Average 4 CP (MW) 67,690.2056 67,690.2056 67,273.1011 Docket 46604 & 47777 10 Wholesale Rate $/MW $ 12,889.477657 $ 12,121.639353 $ 980.348786 $ 13,101.988139 -62- 96 Exhibit JMS-8 Page 2 of 3 Schedule A Page 1 of 1 Amended 5/1/18 ONCOR ELECTRIC DELIVERY COMPANY LLC Interim Update of Wholesale Transmission Cost of Service As of December 31, 2017 Sponsor: J. Michael Sherburne Balance Approved per Docket 46957 Balance Approved per Final Order, Restated Line Docket 46957 Final for 21% FIT Rate & Interim Annual Interim Revenue No. Description Order, Excess DFIT increase Requirement Schedule Reference 35% FIT Rate (1) (2) (3) _ (1) + (2) 1 Operation & Maintenance $ 148,102,424 $ 148,102,424 $ - $ 148,102,424 Docket 46957 2 Depreciation and Amortization 219,906,015 219,906,015 18,487,838 238,393,853 Schedule E-1 3 Taxes Other Than Income Taxes 85,298,597 85,072,939 6,163,355 91,236,294 Schedule E-2 4 Federal Income Taxes 101,687,436 34,974,610 4,693,469 39,668,079 Schedule E-3 5 Return on Rate Base 339,958,933 339,946,951 31,550,451 371,497,402 Schedule B 6 Total Revenue Requirement 894,953,405 828,002,939 60,895,113 888,898,052 7 Other Revenues (22,462,012) (22,462,012) - (22,462,012) Docket 46957 8 Total $ 872,491,393 $ 805,540,927 $ 60,895,113 $ 866,436,040 9 ERCOT Average 4 CP (MW) 67,690,2056 67,690.2056 67,273.1011 Docket 46604 & 47777 10 Wholesale Rate $/MW $ 12,889.477657 $ 11,900.405972 $ 978.977107 $ 12,879.383079 -63- 97 Exhibit 1MS-8 Page 3 of 3 ONCOR ELECTRIC DELIVERY COMPANY LLC Interim TCOS Comparison Sponsor: J. Michael Sherburne Approved in Docket Adjusted for ExDFIT Description No. 47988 in 511118 Tax Docket Differences Total Rate Base 4,991,585,207 4,991,565,478 (19,729) Operation & Maintenance 148,102,424 148,102,424 Depreciation and Amortization 238,393,853 238,393,853 Taxes Other Than Income Taxes 91,286,769 91,236,294 (50,475) Federal Income Taxes 54,591,610 39,668,079 (14,923,531) Return on Rate Base 371,498,729 371,497,402 (1,327) Total Revenue Requirement 903,873,385 888,898,052 (14,975,333) Other Revenues (22,462,012) (22,462,012) Total 881,411,373 866,436,040 (14,975,333) ERCOT Average 4CP (MW) 67,273.1011 67,273.1011 Wholesale Rate $/MW 13,101.988139 12,879.383079 (222.605059) -64- 98 Exhibit JMS-9 Page 1 of 7 Schedule A Page 1 of 1 ONCOR ELECTRIC DELIVERY COMPANY LI-C Amended 05101/2018 Interim Update of Wholesale Transmission Cost of Service - Updated TCOS Baseline As of December 31, 2017 Sponsor. J. Michael Sherburne Balance Approved per Docket 46957 Balance Approved per Final Order, Restated Line Docket 46957 Final for 21% FIT Rate & Interim Annual Interim Revenue Schedule No. Description Order, Excess DFIT Increase Requirement Reference 35% FIT Rate 1 2 3= 1+ 2 1 Operation & Maintenance $ 148,102,424 $ 148,102,424 $ - $ 148,102,424 Docket 46957 2 Depreciation and Amortization 219,906,015 219,906,015 18,487,838 238,393,853 Schedule E-1 3 Taxes Other Than Income Taxes 85,298,597 85,072,939 6,163.355 91.236,294 Schedule E-2 4 Federal Income Taxes 101,687,436 34,974,610 4.693,469 39.668,079 ScheduleE-3 5 Return on Rate Base 339,958,933 339.946.951 31,550,451 371,497,402 Schedule B 6 Total Revenue Requirement 894,953,405 828,002,939 60,895,113 888,898,052 7 Other Revenues (22,462,012) (22,462,012) (22,462,012) Docket 46957 8 Total $ 872,491,393 $ 805,540,927 $ 60 895113 $ 866,436,040 9 ERCOT Average 4 CP (MW) 67,690,2056 67.690.2056 67,273,1011 Docket 46604 & 47777 10 Wholesale Rate $IMW $ 12,889.477657 $ 11,900.405972 $ 978.977107 $ 12,879.383079 -65- 99 Exhibit JMS-9 Page 2 of 7 Schedule 8 Page 1 of 1 ONCOR ELECTRIC DELIVERY COMPANY LLC Amended 05/0112018 Interim Update of Wholesale Transmission Cost of Service - Updated TCOS Baseline Rate Base As of December 31, 2017 Sponsor: J. Michael Sherburne Balance Approved per Docket 46957 Final Order, Balance Approved Restated for 21% Line No. Description per Docket 46957 Final Order, FIT Rate & Excess DFIT Actual Balance at 12131/2017 Increase in Rate Base & Return Schedule Reference 35% FIT Rate 1 2 3= 2- 1 DirectAssigned:) FERC Accounts (350 - 362) 1 2 3 Original Plant In Service (Accumulated Depreciation) Net Plant In Service $ 7.410,566,058 1 955 520 699 $ 7,410,566,058 1 955 520 699 $ 8.002,454,101 2 123 485 981 $ 591,888,043 167 965 282 Schedule B-1 Schedule B-5 5.455,045,359 5,455,045,359 5,878,968,120 423,922,761 4 5 6 7 Allocated Plant Accounts - Net Working Capital' Plant Held for Future Use • Regulatory Assets ` 167.798.203 (1,381,197) 12.095,264 73.343,237 167,798.203 (1,549,490) 12,095,264 73,343,237 167,798,203 (1,549,490) 12,095,264 73,343,237 Docket46957 Docket46957/Restated Docket 46957 Docket 46957 8 9 Other' Subtotal 1,139 095.252 1,139.087 950 1 139 087 950 Docket 46957/Restated (887,239,745) (887.400,736) (887,400,736) 10 Total Rate Base $ 4,567,805,614 $ 4,567,644,623 $ 4,991,567,384 $ 423,922,761 11 Rate of Return 7.4425% 7.4425% 7.4425% 7.4425% WP/Schedule A, page 2 & Docket46957 $ 339,958,933 $ 339,946,951 $ 371,497,402 $ 31,550,451 12 Return On Rate Base Schedule A ' Same as last TCOS Note: Line S. "Other' includes Inventory, Prepayments. Electric Plant Acquisition Adjustment, ADFIT and Excess Deferred Tax Regulatory Llabililles related to the Tax Cuts and Jobs Act. -66- 100 `oo G G y In m 0 v F-' a d U 10 J } d d G� U to c p m W N c � (j O J C N W O y (� N E E r (�) CLU E- J Wto y O y d 0 O d m 6 M E 'C C E Ln vvmw preppp ' NCO tOvm ID v � C C bcDOC'7m r r 7 u) N tot, m r O m m V pa,' r m m fV m In W mm,gwcgt-m rnlnolnaoNlnlo Io Ic rM N m w � m mLq�In fa V C N 11 �� 0�� •- tmt•1 .-fV N ro m N ,c O y R m t00 Nep eD �t]r0 ' wNm WMOr N tD f041p 0 y 4 Nw mV'NORt7 CA aDNw U.r 19 C + •!'I�m11j�N m O r m N OaFM r Mf00 O) v mT A m N m? 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M to q' V' !� IOCO tL IOj N tY f0 L y ,y r y u mmmmmm(7J m(IL mm m gmc mdddarmmdv dmm Dam >>>>>>>>> >>> m N N�01 N�01� d N�01 Na61 d ,mGwlX N f`�mN Kfq fn fn fn f7 fA N ddaaaaan`a a`aa' �3��33333 333 Ln Y O O W O O t0 •[ Y `° duo � U y N > U C m m y ❑ ` m � m O C to m y O U rrgw3- m oo-oS a'Em2 _ Q C C C O. LL x? M M F E r C d 0 c m 7 LC IL c C m •7 �C C m J .D y •O C J d W a m O Q fCp m W y N C m c m c L° mU rn� nH d m� ca E o� u o m Wm m•D- c u o- y ? 0 0 C C O p O C 2 is C tC9 EJfnm�do��r- ��inini°- F CONmvtoWN tool 'rC,O N R C a Z MfOr1�M�f��7 l0+f M M N MGM O F'QQQQQQQQQ ❑QQQ Y- m -Nmv wfO r o o) NMv O J Z Exhibit JMS-9 Page 3 of 7 -67- 101 C O N N N E N 0 l A 0 0 W (W0 m � N N O Y •- W m n Q W 01 n N Q N m Q m N Q Q m 1n �a .m- C � �O �O V 1D o0 SI Oi tD WOIWWo+QW o0 m Q m min tV O eh o rn M1 rn 0 _ C C n W W N.-QinMO ��000!�tWD W mN W Q NNQWi� N O m C aMp `� N y Vd N a p �MONW IA II N A m Qlgi r O aA0 Q A R � O.QO a ¢pLL'f t7a l+)��U1 W eo ti er .e c .t ,e a DE ,e c = 0 11 OOQD� N AWI 7n N O� -NNNPM"" ,AaV d � p O 0 Ana mW oC o MOaD C d p nIAr A Om Y AAOmW�OAmo OIh OIf �NIn� In A M V N Wm N jQ S Un]1 W C N W W m M O n m W u O 1 O O N E m •p '`O. W O• Q e Nepp O Q M MOnANN�O O t WWp J A mW MIW O M r W pp IA Q yy• IA Q m C a V h N N A l b ? N M m G O C^ a m N O m M N A Q m a0 N d 1 C-4 Y � N r 9 a O' C7��y r m mnW Q WQI(i+ O NMIA AIr W m o W r n AQ� n m �W�pp O V C Q v f': (d Id of f` ID W O O V j m� m^ ^6 Q tD Iii 1C UWj OWi�O IWi 1� <0Ai IQ ymy A O V QtV�Ct pia c ma N .= o p N t "ate r � tm0�r�p Q�iO �tWOh OIA pp N m C O.� �� LL �OmnOI W On �f70M OOIQ pAppp IA ? O q m � y�.m+0 OMN W O')T�N 0100 V 01 O • V p N V N1.., N� W r N n O A Qm�NLLM'1Nr W N ID O I ID M W O m 0 d U N L V OWi O N 01 N Oat K A W O NLL1L W W 01� m U)IAMO 53 I A ONt y� 7 O A M A m p N N m 0 N O'er � OMN W MOI '-N O� 0 a 6f a a Q W W (D a 6 x IM11Nh��^ OWi N N C u�Qomi w w 0 c. t (On Y b m p, K d Y 111 m N O C W G W r+ O p m m C C V if N OIR�` QL'�O O �O`�0. RI O u Q:E��d�oou�'y Edo ? u U �vEXT�(oUUEE ccn� m c aLL ._ V a G O. c qq m'j aLL O C C N J p�� m N G e W p 0 0 0 CMe C W N m O �cm�c �n l�s, v+w NF- p�cC 0 O O Ra d =d ma j0 Ca p UI •YI c C C J,n U) k0771- O• J(0 V)P Q o E Z E s c F C hIQA O V vOi INA I(11WAhNh H IOA W ING .p. .q. i mUFQQ«66¢6¢ 066¢ Y- � > r r m J2 QLL Exhibit JMS-9 Page 5 of • 8 102 Exhibit JMS-9 Page 6 of 7 Schedule E-2 Page 1 of 1 ONCOR ELECTRIC DELIVERY COMPANY LLC Amended 0510112018 Interim Update of Wholesale Transmission Cost of Service - Updated TCOS Baseline Taxes Other Than Federal Income Tax As of December 31, 2017 Sponsor: J. Michael Sherburne Total Approved per Line No. FERC Account Account Description Schedule / Workpaper Reference Total Approved per Docket 46957, Docket 46957, Restated for 21% FIT Rate & Excess DFIT Interim Annual Increase Balance at 12/31117 35% FIT Rate 1 2 3= 1 f 2 Taxes Other Than Income Taxes: Non -Revenue Related 1 2 Ad Valorem Taxes Payroll Taxes WP/Sched E-2/1 $ 79,030,861 3.209,069 $ 79,030,861 3,209,069 5,958,370 0 $ 84,989,231 3,209.069 Revenue Related Taxes 3 Texas Margin Tax WPlSched E-2/2 3,058,667 2.833,009 204,985 3,037,994 4 Total Taxes Other Than FIT Taxes Schedule A $ . 85,296,597 $ 85,072,939 6,163,355 1 $ 91,236,294 -70- 103 Exhibit 7MS-4 Page 7 of 7 Schedule E•3 Page 1 of 1 ONCOR ELECTRIC DELIVERY COMPANY LLC Amended 05/01/2018 Interim Update of Wholesale Transmission Cost of Service - Updated TCOS Baseline Federal Income Tax As of December 31, 2017 Sponsor: J. Michael Sherburne Amount Approved per Docket 46957, Line No. Account Description Schedule / Workpaper Reference Amount Approved per Docket 46957, Restated for 21% FIT Rate & Excess DFIT Interim Annual Increase Balance at 12/31/17 35% FIT Rate (1) (2) (3) = (1) + (2) Federal Income Tax: 1 Return on Rate Base Schedule B $ 339,958,933 $ 339,946,951 31,550,451 $ 371,497,402 Deduct: 2 3 4 5 Synchronized Interest Included In Return ITC Amortization Amortization of Excess DFIT Other WP/Schedule E-3 149,709.829 993,024 383,676 53,716 149,704,553 993,024 12,173,154 52,864 13,894,069 163,598,622 993,024 12,173,154 52.864 Add: 6 7 Depreciation Addback Meals and Entertainment, Prov for Contingencies 811,951 319,905 811,951 319.905 811,951 319.905 189.950.544 178,155,212 17,656,382 195,811,594 8 9 Taxable Component of Return Tax Factor (1/1 - .35x.35) Tax Factor (1/1 - .21x.21) 53.8461538% 26.58227850/6 26.5822785% 26.5822785% 10 Federal Income Taxes Before Adjustments 102,281,062 47,357,715 4,693,469 52,051,184 Deduct: 11 11a 12 ITC Amortization Amortization of Protected Excess DFIT Amortization of Non -Protected Excess DFIT 993.024 383,676 993,024 12,173,154 993,024 12,173.154 13 General Business Credit, Prov for Contingencies Add: 28,877 28,877 28,877 14 15 Depreciation Differences Total Federal Income Tax Schedule A 811,951 811 951 811 951 $ 101,687,436 1 $ 34,974.610 4,693,469 $ 39.668.079 -71 104 Calculation of TCOS-Related Credit for Change in FIT Rate from 35% to 21% For the Period of January 1, 2018 through March 26, 2018 Docket No. 46957 TCOS Revenue Requirement per Stipulation Filed on 8/2/2017 Docket No. 46957 TCOS Revenue Requirement as Restated in Amended Filing on 2/5/2018 Restated TCOS Rate using 2016 4CP Revenue Requirement Difference - Annual Amount of FIT -Related Credit FIT Credit Rate as a Portion of the Restated TCOS Rate TCOS Rev Req Approved in Docket No. 47988 TCOS Rate Approved in Docket No. 47988 Calculation of Credit Due to NTS Customers for 1/1/18 - 3/26/18 FIT Credit Rate as a Portion of the Restated TCOS Rate 2017 4CP as Approved in Docket No. 47777 Monthy Credit for January 2018 Monthy Credit for February 2018 Credit for March 1 - March 26, 2018 Total Credit for January 1, 2018 - March 26, 2018 2017 4CP as Approved in Docket No. 47777 Credit - Rider WTRF-N - Wholesale Tax Refund Factor (NTS) Calculation of Intra-Company and Third -Party 2017 4CP for Oncor % of Total 4CP 2017 4CP for Third -Party % of Total 4CP 2617 4CP - Total for ERCOT Intra-Company Portion of Wholesale Tax Refund Third -Party Portion of Wholesale Tax Refund Total Wholesale Tax Refund Exhibit JMS-10 Page 1 of 1 $872,491,393 See Exhibit BLC-1, page 2 of 3 $820,516,260 See Exhibit BLC-1, page 2 of 3 $12,121.639353 per MW $51,975,133 See Exhibit BLC-1, page 2 of 3 $767.838309 per MW $881,411,373 $13,101.988139 per MW, Effective Date 03/27/2018 $767.838309 per MW 67,273.1011 MW $4,304,572.02 $4,304,572.02 $3,610,286.21 $12,219,430.24 67,273.1011 MW $181.639170 per MW, Proposed Effective Date of July 1, 2018 - to be effective for one month. 24,138.85624 MW 35.8819% 43,134.24486 MW 64.1181% 67,273.1011 MW $4,384,561.81 $7,834,868.43 $12,219,430.24 -72- 105 Exhibit 1MS-11 Oncor Electric Delivery Company LLC Page 1 of 1 Adjustment To Final Order (Tax Rate35%) forTCIA and Excluding EXDFIT Test Year Ending 12/31/2016 Line No. (a) (b) (c) (d) (e) (f) (g) 1 Final Order ($) 2 TCOS Consolidation of 3 Revenue Requirement Revenue Functionalized 4 Customer Meter Distribution Total Requirement Revenue 5 Return on Rate Base 6,259,419 3S,401,529 436,459,214 478,120,162 339,958,933 818,079,095 6 O&M (excl Accts 565 & 928) 61,062,294 113,585,556 527,334,571 701,982,421 148,102,424 850,094,845 7 Account 565 1,275,361,481 1,275,361,481 1,275,361,481 8 Account 928 4,590,642 4,590,642 4,590,642 9 Depreciation 12,602,078 119,788,652 302,864,371 435,255,100 219,906,015 655,161,11E 10 Federal IncomerTaxes (FIT) 1,912,903 10,741,486 130,911,546 143,565,935 101,687,436 245,253,371 11 Taxes other than FIT 1,926,728 7,902,695 393,213,089 403,042,513 85,298,597 488,341,109 12 Other Revenue 541452 (7,924,914) (39,903,430) (48,369,796) (22,462,012) (70,831,809) 13 Revenue Requirement 83,221,970 279,495,004 3,030,831,483 3,393,548,457 872,491,393 4,266,039,850 14 Other Revenue 48,369,796 22,462,012 70,831,809 15 Total Revenue Requirement 3,441,918,254 894,953,405 4,336,871,659 16 Excl Acct 928 (4,590,642) 0 (4,590,642 17 Total Cost of Service 3,437,327,612 894,953,405 4,332,281,017 18 19 Rate Design to Recover: 20 Revenue Requirement 83,221,970 279,495,004 3,030,831,483 3,393,548,457 21 Exclude: Account 565 0 0 (1,275,361,481) (1,275,361,481) 22 Account 928 0 0 (4,590,642) (4,590,642) 23 Rate Design Revenue 83,221,970 279,495,004 1,750,879,361 2,113,596,334 24 2S 21% From Filed DCRF (DCRF_Baseline_COS.xlsx) 26 TCOS Consolidation of 27 Revenue Requirement Revenue Functionalized 28 Customer Meter Distribution Total Requirement Revenue 29 Return on Rate Base 6,248,922 35,391,776 436,308,005 477,948,702 339,948,278 817,896,980 30 O&M (excl Accts 565 & 928) 61,062,294 113,585,556 527,334,571 701,982,421 148,102,424 850,084,845 31 Account 565 1,256,754,483 1,256,754,483 1,256,754,483 32 Account 928 4,590,642 4,590,642 4,590,642 33 Depreciation 12,602,078 119,788,652 302,864,371 435,255,100 219,906,015 655,161,115 34 Federal Incomer Taxes (FIT) 939,276 5,285,478 64,252,415 70,477,169 49,898,141 120,375,310 35 Taxes other than FIT 1,921,534 7,873,849 392,762,282 402,557,664 85,123,414 487,681,078 36 Other Revenue (541,452) (7,924,914) (39,365,727) (47,832,093) (22,462,012) (70,294,106) 37 Revenue Requirement 82,232,652 274,000,396 2,945,501,040 3,301,734,088 820,516,259 4,122,250,347 38 Other Revenue 47,832,093 22,462,012 70,294,106 39 Total Revenue Requirement 3,349,566,181 842,978,272 4,192,544,453 40 Excl Acct 928 (4,590,642) 0 (4,590,642 41 Total Cost of Service 3,344,975,539 842,978,272 4,187,953,811 42 43 Rate Design to Recover: 44 Revenue Requirement 82,232,652 274,000,396 2,945,501,040 3,301,734,088 45 Exclude: Account 565 0 0 (1,256,754,483) (1,256,754,483) 46 Account 928 0 0 (4,590,642) (4 590 642 47 Rate Design Revenue 82,232,652 274,000,396 1,684,155,915 2,040,388,963 48 49 Difference between 21% and Final Order ($) 50 TCOS Consolidation of 51 Revenue Requirement Revenue Functionalized 52 Customer Meter Distribution Total Requirement Revenue 53 Return on Rate Base (10,497) (9,753) (151,210) (171,460) (10,655) (182,115) 54 O&M (excl Accts 565 & 928) 0 0 0 0 0 0 55 Account 565 0 0 (18,606,998) (18,606,998) 0 (18,606,998) 56 Account 928 0 0 0 0 0 0 57 Depreciation 0 0 0 0 0 0 58 Federal Incomer Taxes (FIT) (973,627) (5,456,008) (66,659,131) (73,088,766) (51,789,295) (124,878,061) 59 Taxes other than FIT (5,194) (28,847) (450,808) (484,848) (175,183) (660,031) 60 Other Revenue O 0 537,703 537,703 0 537,703 61 Revenue Requirement (989,318) (5,494,608) (85,330,443) (91,814,369) (51,975,133) (143,789,S03) 62 Other Revenue (537,703) 0 (537,703) 63 Total Revenue Requirement (92,352,072) (51,975,133) (144,327,206) 64 Excl Acct 928 f D 0 n 65 Total Cost of Service (92,352,072) (51,975,133) (144,327,206) 66 67 Rate Design to Recover: 68 Revenue Requirement (989,318) (5,494,608) (85,330,443) (91,814,369) 69 Exclude: Account 565 0 0 18,606,998 18,606,998 70 Account 928 0 0 io M 71 Rate Design Revenue (989,318) (5,494,608) (66,723,44S) (73,207,371) -73- 106 Exhibit JMS-12 Page 1 of 1 Oncor Electric Delivery Company LLC Allocation of Functionalized Revenue Requirements Due to a 21% Tax Rate Test Year Ending 12/31/2016 Line No. (a) (b) (c) (d) 1 Customer Cost Allocation 2 Revenue Requirement Change in Revenue 3 Rate Class Final Order 21% Requirement 4 Residential $47,793,937 $47,225,701 ($568,236) 5 Secondary <= 10 kW 7,013,763 $6,929,670 (84,093) 6 Secondary > 10 kW 21,531,951 $21,276,679 (255,273) 7 Primary <= 10 kW 166,284 $164,283 (2,001) 8 Primary> 10 kW 5,769,076 $5,700,084 (68,992) 9 Primary Substation 128,241 $126,771 (1,470) 10 Transmission 282,678 $279,562 (3,116) 11 Lighting 456,628 $451,448 (5,180) 12 Wholesale XFMR 18,523 $18,299 (223) 13 Wholesale DLS 60,889 $60,155 734 14 $83,221,970 $82,232,652 ($989,318) 15 16 Meter Cost Allocation 17 Revenue Requirement Change in Revenue 18 Rate Class Final Order 21% Requirement 19 Residential $161,558,716 $158,394,694 ($3,164,022) 20 Secondary <= 10 kW 23,861,410 23,392,917 (468,493) 21 Secondary > 10 kW 72,141,380 70,712,662 (1,428,718) 22 Primary <= 10 kW 566,400 555,248 (11,153) 23 Primary > 10 kW 19,495,783 19,110,001 (385,782) 24 Primary Substation 414,022 405,744 (8,279) 25 Transmission 877,908 859,681 (18,228) 26 Lighting 300,726 296,117 (4,610) 27 Wholesale XFMR 64,992 63,756 (1,237) 28 Wholesale DLS 213,665 209,577 (4,087) 29 $279,495,004 $274,000,396 ($5,494,608) 30 31 Distribution System Cost Allocation 32 Revenue Requirement Change in Revenue 33 Rate Class Final Order 21% Requirement 34 Residential $870,210,113 $834,965,066 ($35,245,047) 35 Secondary <= 10 kW 32,403,561 31,098,942 (1,304,619) 36 Secondary > 10 kW 689,407,140 663,273,185 (26,133,955) 37 Primary <= 10 kW 165,059 158,720 (6,339) 38 Primary> 10 kW 81,818,380 79,186,639 (2,631,741) 39 Primary Substation 6,474,693 6,285,252 (189,441) 40 Transmission 18,243,844 18,113,059 (130,785) 41 Lighting 47,081,467 46,198,196 (883,271) 42 Wholesale XFMR 916,247 880,454 (35,793) 43 Wholesale DLS 4,158,857 3,996,401 (162,455) 44 $1,750,879,361 $1,684,155,915 ($66,723,445) 45 46 Total $2,113,596,334 $2,040,388,963 -$73,207,371 -74- 107 Oncor Electric Delivery Company LLC Calculation of Changes in Rates Due to 21% Tax Rate Test Year Ending 12/31/2016 Line Exhibit JMS-13 Page 1 of 3 No. (a) (b) (c) (d) 1 Customer Charge 2 Changein 3 Changein Number of Bills Customer Charge due to 4 Rate Class Revenue Requirement# (see page 2) 21% 5 Residential ($568,236) 35,424,336 ($0.02) 6 Secondary <= 10 kW (84,093) 3,271,872 ($0.03) 7 Secondary > 10 kW (255,273) 2,342,136 ($0.11) 8 Primary <= 10 kW (2,001) 23,520 ($0.09) 9 Primary> 10 kW (68,992) 68,940 ($1.00) 10 Primary Substation (1,470) 1,104 ($1.33) 11 Transmission (3,116) 2,448 ($1.27) 12 Lighting (5,180) - - 13 Wholesale XFMR (223) 180 ($1.24) 14 Wholesale DLS 734 612 ($1.20) 15 ($989,318) 16 Meter Charge 17 Changein 18 Changein Number of Bills Meter Charge due to 19 Rate Class Revenue Requirement# (see page 2) 21% 20 Residential ($3,164,022) 35,424,336 ($0.09) 21 Secondary <= 10 kW (468,493) 3,271,872 ($0.14) 22 Secondary > 10 kW (1,428,718) 2,342,136 ($0.61) 23 Primary <= 10 kW (11,153) 23,520 ($0.47) 24 Primary > 10 kW (385,782) 68,940 ($5.60) 25 Primary Substation (8,279) 1,104 ($7.50) 26 Transmission (18,228) 2,448 ($7.45) 27 Lighting (4,610) - - 28 Wholesale XFMR (1,237) 180 ($6.87) 29 Wholesale DLS (4,087) 612 ($6.68) 30 ($5,494,608) 31 Distribution System Charge 32 Change in Distribution 33 Changein Billing Units kWh/kW System Charge due to 34 Rate Class Revenue Requirement# (see page 3) 21% 35 Residential ($35,245,047) 43,407,410,468 ($0.000812) 36 Secondary <= 10 kW (1,304,619) 1,827,493,529 ($0.000714) 37 Secondary> 10 kW (26,133,955) 150,381,395 ($0.173784) 38 Primary <= 10 kW (6,339) 23,524,289 ($0.000269) 39 Primary > 10 kW (2,631,741) 28,249,038 ($0.093162) 40 Primary Substation (189,441) 6,128,346 ($0.030912) 41 Transmission (130,785) 31,417,739 ($0.004163) 42 Lighting (883,271) 436,938,761 ($0.002044) 43 Wholesale XFMR (35,793) 1,321,680 ($0.027081) 44 Wholesale DLS (162,455) 1,295,419 ($0.125408) 45 ($66,723,445) 46 47 * Calculated Rate per kWh includes Tax Revenue Credit for Meter Charge of $5,180 and 48 $4,610 for Customer Charge. 49 # See Column (d) of Exhibit JMS-3 _ __- 108 -75- Exhibit JMS-13 Page 2 of 3 Oncor Electric Delivery Company LLC Calculation of Changes in Rates Due to 21%Tax Rate Oncor/Sharyland Billing Information Used To Design Rates Approved In Docket No. 46957 Test Year ending 12/31/2016 LINE DESCRIPTION VOLT Billing Unit Type Oncor' Sharyland2 Total Bills (a) (b) (c) (d) (e) (f) 1 Residential Bills 35,106,108 318,228 35,424,336 2 Secondary 10 kW and Below Bills 3,110,640 161,232 3,271,872 3 Secondary Greater than 10 kW Bills 2,220,816 121,320 2,342,136 4 Primary 10 kW and Below Bills 23,520 0 23,520 5 Primary Greater than 10 kW Bills 57,096 11,844 68,940 6 Substation Bills 1,104 0 1,104 7 Transmission Bills 2,232 216 2,448 8 Lighting Bills 701,424 36,600 738,024 9 Wholesale - Substation Primary Bills 168 12 180 10 Wholesale - Distribution Line Primary Bills 612 0 612 ' Refer to Docket No. 46957, Schedule II-H-4.1, page 9, column (a) Z Refer to Docket No. 45414, Schedule IV-J-7.2 -76- 109 Exhibit JMS-13 Page 3 of 3 Oncor Electric Delivery Company LLC Calculation of Changes in Rates Due to 21% Tax Rate Schedule H: Distribution Revenues, Sales and Customer Data Oncor DCRF Baseline,12/31/2016 Test Year LINE DESCRIPTION VOLT Billing Unit Type (1) Reference Schedule Workpaper Billing units approved in Docket No. 46957 (2) (a) (b) (c) (d) (e) 1 Residential kWh WP/Sched H 43,407,410,468 2 Secondary 10 kW and Below kWh WP/Sched H 1,827,493,529 3 Secondary Greater than 10 kW kW WP/Sched H 150,381,395 4 Primary 10 kW and Below kWh WP/Sched H 23,524,289 5 Primary Greater than 10 kW kW WP/Sched H 28,249,038 6 Substation kW WP/Sched H 6,128,346 7 Transmission kW WP/Sched H 31,417,739 8 Streetlighting (Unmetered) kWh WP/Sched H 323,819,626 9 Streetlighting (Metered/Non-Co) kWh WP/Sched H 13,841,616 10 Streetlighting (Metered/Co) kWh WP/Sched H 512,785 11 Outdoor kWh WP/Sched H 98,764,734 436,938,761 12 Total Lighting WP/Sched H 13 Wholesale - Substation Primary kW WP/Sched H 1,321,680 14 Wholesale - Distribution Line Primary kW WP/Sched H 1,295,419 *Source: Docket No. 46957, Item No. 420, Attachment 4 - DCRF Baseline, Schedule H, Page 16 of 17, Bates Stamp Page No. 324. -77- 110 Oncor Electric Delivery Company LLC November 2018 Billing Units Rate Schedule Residential Service Small Secondary Less than or Equal to 10 kW Secondary Service Greater than 10 kW Primary Service Less than or Equal to 10 kW Primary Service greater than 10 kW - Distribution Line Primary Service Greater than 10 kW - Substation Transmission Service Lighting Service Wholesale Substation Service Wholesale Distribution Line Service Nov 2018 2,630,343,359 kWh 135,237,529 kWh 11,888,357 kW 2,500,000 kWh 2,549,529 kW 579,622 kW 2,928,005 kW 36,885,814 kWh 115,721 kW 113,429 kW Exhibit JMS-14 Page 1 of 1 -78- Exhibit JMS-15 Tariff for Retail Delivery Service Page 1 of 2 Oncor Electric Delivery Company LLC 6.1.1 Delivery System Charges Sheet: 6.8 Applicable: Entire Certified Service Area Page 1 of 1 Effective Date: November 1, 2018 Revision: Original 6.1.1.6.8 Rider TRF. — Tax Refund Factor AVAILABILITY Applicable to all Retail Customers receiving Delivery Service under one of the Company's Rate Schedules in the Tariff for Retail Delivery Service for refund of amount collected for federal income taxes in excess of current rate, collected in the Company's approved rates from the effective date of the reduced tax rate, January 1, 2018, through August 31, 2018. Rider TRF shall remain in effect until the approved amount of $XX,XXX,XXX has been refunded (which is estimated to be November 30, 2018). NET MONTHLY BILL AMOUNT The TRF amount for each of the Company's applicable retail rate schedules is as follows: Rate Schedule Residential Service Secondary Service Less than or Equal to 10 kW Secondary Service Greater than 10 kW Primary Service Less than or Equal to 10 kW TRF $ O.xxxxxx per kWh $ O.xxxxxx per kWh $ x.xxxxxx per Distribution System Billing kW $ O.xxxxxx per kWh Primary Service Greater than 10 kW — Distribution Line $ x.xxxxxx per Distribution System Billing kW Primary Service Greater than 10 kW - Substation Transmission Service Lighting Service $ x.xxxxxx per Distribution System Billing kW $ x.xxxxxx per Distribution System Billing kW $ O.xxxxxx per kWh NOTICE This Rate Schedule is subject to the Company's Tariff and Applicable Legal Authorities. -79- 112 Exhibit JMS-15 TARIFF FOR TRANSMISSION SERVICE Page 2 of 2 ONCOR ELECTRIC DELIVERY COMPANY LLC 3.0 Rate Schedules Sheet: 10 Applicable: Wholesale Transmission Service Revision: Original Effective Date: November 1 2018 Page 1 of 1 3.10 Rider WTRF — Wholesale Tax Refund Factor (XFMR & DLS) Application Applicable to all WDSCs receiving Wholesale Substation Service and Wholesale Distribution Line Service for refund of amount collected for federal income taxes in excess of current rate, collected in the Compnay's approved rates from the effective date of the reduced tax rate, January 1, 2018, through August 31, 2018. Rider WTRF (Subst & DLS) shall remain in effect until the approved amount of $X,XXX has been refunded (which is estimated to be November 30, 2018). Monthly Surcharge The WTRF (Subst & DLS) credit for each of the Company's applicable wholesale rate schedules is as follows: Rate Schedule WTRF Surcharge Wholesale Substation Service ($X.XXX) per kW, billed at Annual Demand (kW) Wholesale Distribution Line Service ($X.XXX) per Billing kW Annual Demand (kW) is the highest 15-minute kW recorded at the Point of Interconnection in the 12-month period ended with the current month. The Billing kW applicable to the Distribution System Charge shall be the higher of the NCP kW for the current billing month or 80% of the highest monthly NCI) kW established in the 11 months preceding the current billing month (80% ratchet). Notice This Rate Schedule is subject to the Company's Tariff for Transmission Service and Applicable Legal Authorities. -80- 113 IV INDEX TO THE DIRECT TESTIMONY OF BONNIE L. CLUTTER, WITNESS FOR ONCOR ELECTRIC DELIVERY COMPANY LLC POSITION AND QUALIFICATIONS...........................................................2 PURPOSE OF DIRECT TESTIMONY........................................................3 IMPACT OF THE FIT RATE CHANGE ON ONCOR'S REVENUE REQUIREMENT.....................................................3 IMPACT OF EXCESS ADFIT RESULTING FROM THE TAX RATE CHANGE ON ONCOR'S REVENUE REQUIREMENT ............ 7 V. DETERMINATION OF THE AMOUNT OF BOOK DEPRECIATION EXPENSE INCLUDED IN ONCOR'S RATES ..............12 A. Distribution..........................................................................................12 B. Transmission......................................................................................14 C. General and Intangible Plant Depreciation and Amortization Expense Included in Rates.................................................................15 VI. CONCLUSION..............................16 ........................................................... VII. AFFIDAVIT...............................................................................................17 Vill. EXHIBITS 18 ....................................................................................... EXHIBIT BLC-1 TCJA Effect on Revenue Requirement EXHIBIT BLC-2 TCJA Effect on FIT Expense EXHIBIT BLC-3 Amortization of Non -Plant -Related Excess ADFIT EXHIBIT BLC-4 Book Depreciation Included in Rates Clutter Direct Oncor Electric Delivery FIT -Related Rate Reduction -1- 1171 1 DIRECT TESTIMONY OF BONNIE L. CLUTTER 2 I. POSITION AND QUALIFICATIONS 3 Q. PLEASE STATE YOUR NAME, BUSINESS ADDRESS, AND CURRENT 4 EMPLOYMENT POSITION. 5 A. My name is Bonnie L. Clutter. My business address is 1616 Woodall 6 Rodgers Freeway, Dallas, Texas 75202. 1 am the Tax Accounting 7 Manager at Oncor Electric Delivery Company LLC ("Oncor" or 8 "Company"). 9 Q. PLEASE DESCRIBE YOUR EDUCATIONAL BACKGROUND AND 10 PROFESSIONAL QUALIFICATIONS. 11 A. I graduated from Baylor University in August 1997 with a Bachelor of 12 Business Administration degree in Accounting and a Masters in Business 13 Administration. In 1997, 1 began my career at Texas Utilities Services, 14 Inc. where I worked in various accounting departments, including 15 corporate accounting and tax accounting. In 2002, 1 became an 16 Accounting Specialist for Oncor, supporting transactional accounting 17 functions, monthly financial analysis, internal reporting and external 18 reporting. I assumed my current position as Tax Accounting Manager in 19 2012. In this role, I am responsible for managing the federal and state tax 20 accounting functions for Oncor. 21 Q. DO YOU HOLD ANY PROFESSIONAL CERTIFICATIONS? 22 A. Yes. I am licensed as a Certified Public Accountant in the State of Texas. 23 Q. ARE YOU A MEMBER OF ANY PROFESSIONAL ORGANIZATIONS? 24 A. Yes. I am a member of the Texas Society of Certified Public Accountants. 25 Q. WHAT ARE YOUR RESPONSIBILITIES IN YOUR CURRENT 26 POSITION? 27 A. I have responsibility for recording all of Oncor's federal, state, and 28 property tax -related accounting entries. I am responsible for the tax- 29 related information provided quarterly and annually to investors. I also Clutter Direct Oncor Electric Delivery FIT -Related Rate Reduction -2- 1172 1 support and review the preparation of Oncor's federal income tax ("FIT") 2 return. 3 Q. HAVE YOU PREVIOUSLY TESTIFIED BEFORE ANY REGULATORY 4 COMMISSIONS? 5 A. Yes, I have pre -filed testimony in Public Utility Commission of Texas 6 ("Commission") Docket Nos. 38929, 39552, 41814, 46957, and 48231. 7 II. PURPOSE OF DIRECT TESTIMONY 8 Q. WHAT IS THE PURPOSE OF YOUR DIRECT TESTIMONY? 9 A. The purpose of my direct testimony is to support the amount of the 10 reduction to the Company's revenue requirement due to the change in the 11 corporate FIT rate from 35% to 21 % pursuant to the Tax Cuts and Jobs 12 Act of 2017 ("TCJA"). Additionally, my testimony supports the amount of 13 excess accumulated deferred federal income taxes ("ADFIT") that have 14 been recorded as a regulatory liability because of the decrease in the FIT 15 rate and the annual amount that should be returned to customers through 16 reduced FIT expense. 17 My direct testimony, exhibits, and workpapers were prepared by me 18 or under my direction, supervision, or control, and are true and correct. 19 III. IMPACT OF THE FIT RATE CHANGE ON ONCOR'S REVENUE 20 REQUIREMENT 21 Q. PLEASE DESCRIBE THE TCJA AS IT RELATES TO THIS FILING. 22 A. The TCJA was signed into law by President Trump on December 22, 23 2017, and it amended the Internal Revenue Code of 1986 ("IRC"). Among 24 other things, the TCJA lowered the corporate FIT rate from 35% to 21 %. 25 Thus, consistent with the Commission's final order in Oncor's most recent 26 base -rate case (Docket No. 46957) and as required by the notice of 27 approval in Oncor's most recent interim transmission cost of service 28 ("TCOS") update (Docket No. 47988), Oncor is requesting adjustment of 29 the amount of FIT provided for in its rates. 30 Q. WHEN WAS ONCOR'S LAST COMPREHENSIVE BASE -RATE CASE? Clutter Direct Oncor Electric Delivery FIT -Related Rate Reduction -3- 1173 1 A. The Company's last comprehensive base -rate case, Docket No. 46957, 2 was filed on March 17, 2017, and was based on a 2016 calendar test 3 year. The Commission issued its final order in that case on October 13, 4 2017, and new rates went into effect on November 27, 2017. 5 Q. WHAT TAX RATE WAS USED TO CALCULATE THE FIT EXPENSE 6 INCLUDED IN THE COMPANY'S APPROVED REVENUE 7 REQUIREMENT IN DOCKET NO. 46957? 8 A. The FIT expense included in the Company's Docket No. 46957 revenue 9 requirement was based on the 35% corporate tax rate that was in effect 10 for 2016. 11 Q. DID THE FINAL ORDER ADDRESS A POTENTIAL CORPORATE TAX 12 RATE CHANGE? 13 A. Yes. Finding of Fact No. 27 and Ordering Paragraph No. 3 of the Docket 14 No. 46957 final Order requires the Company to establish a regulatory 15 liability for the excess FIT amounts collected through the approved 16 revenue requirement that is above the new corporate FIT rate. It also 17 required the Company to return to ratepayers any excess ADFIT created 18 by the tax rate change. 19 Q. WHAT IS THE AMOUNT OF THE ADJUSTMENT TO FIT EXPENSE 20 BASED ON THE TAX RATE REDUCTION TO 21 %? 21 A. As shown on page 1, column (d), line 4 of my Exhibit BLC-1, the reduction 22 to FIT expense based on the change in the corporate FIT tax rate from 23 35% to 21 % is $124,878,061. 24 Q. HOW DID YOU CALCULATE THE $124,878,061 AMOUNT OF FIT 25 EXPENSE REDUCTION? 26 A. As shown on my Exhibit BLC-2, I have utilized the Tax Method 1 27 calculation from the settlement agreement in Docket No. 46957. Column 28 (b), labeled "Docket 46957 Settlement," is identical to the FIT calculation 29 approved by the Commission in that case. The amounts in column (c) 30 restate the settlement amounts from column (b) to what they would have Clutter Direct Oncor Electric Delivery FIT -Related Rate Reduction -4- 1174 1 been had the 21 % tax rate been known and used to calculate FIT 2 expense. All tax -related components have been held constant with the 3 exception of the tax factor on lines 19 and 20 that reflects a change from 4 the tax factor of 53.84615% (.35/(1-35)) utilized in Docket No. 46957 to 5 the revised tax factor of 26.58228% corresponding to the new 21 % 6 corporate FIT rate. The revised tax factor is determined by dividing the 7 tax rate of 21 % by one minus the tax rate (.21/(1-21)). Tax factors are 8 necessary in order to reflect FIT expense used for purposes of 9 determining after-tax equity returns for ratemaking purposes. As an 10 example, it requires $1.2658 ($1 plus (1 X 26.58228%)) of pre-tax return 11 on equity to produce $1.00 of after-tax return on equity. The change in 12 FIT expense included in the Company's revenue requirement as a result 13 of the new 21 % tax rate is shown in column (d). 14 Q. ARE THERE ANY OTHER ATTENDANT IMPACTS TO THE 15 COMPANY'S REVENUE REQUIREMENT BASED ON THE CHANGED 16 FIT EXPENSE? 17 A. Yes. Please refer to my Exhibit BLC-1. Column (d) of this exhibit shows 18 the additional reductions to Operating & Maintenance ("O&M") Expense, 19 Taxes Other Than Federal Income Taxes ("Other Taxes"), and Return on 20 Rate Base. 21 Q. PLEASE EXPLAIN THE REDUCTION TO O&M EXPENSE. 22 Q. Approximately 36% of Oncor's revenue requirement for wholesale 23 transmission service is billed to and recovered internally from its retail 24 distribution service provider ("DSP") role. Oncor in its wholesale 25 transmission service provider ("TSP") role records revenue for the portion 26 of its revenue requirement billed to the DSP function. In its DSP role, 27 Oncor records these billings for network transmission services as an intra- 28 company 0&M expense. In order for Oncor, as a DSP, to recover the cost 29 of Oncor's TSP network transmission services, it includes these costs as 30 part of the transmission cost recovery factor ("TCRF") that is billed to and Clutter Direct Oncor Electric Delivery FIT -Related Rate Reduction -5- 1175 1 collected from retail customers. As a result, approximately 36% of the FIT 2 expense reduction to Oncor's TSP revenues is passed on to Oncor's retail 3 customers through Oncor's TCRF, and the remaining 64% of the FIT 4 expense reduction to Oncor's TSP revenues is passed on to third -party 5 DSPs receiving network transmission services. 6 Q. PLEASE EXPLAIN THE REDUCTION TO OTHER TAXES. 7 A. The reduction to Other Taxes is due to a decrease in the Texas Gross 8 Margin Tax ("margin tax"). The margin tax is calculated by applying the 9 .75% margin tax rate to taxable revenue, less a 30% standard deduction. 10 Because the revenue requirement is lowered for the reduction in FIT 11 expense, there is a corresponding reduction in the margin tax. 12 Q. PLEASE EXPLAIN THE REDUCTION TO THE RETURN ON RATE 13 BASE. 14 A. The reduction to the Return on Rate Base is due to a decrease in Cash 15 Working Capital attributable to the reduced margin tax and FIT expense. 16 Q. WHAT IS THE IMPACT OF THE TAX RATE REDUCTION ON ONCOR'S 17 ANNUAL REVENUE REQUIREMENT? 18 A. As shown on page 1, line 16, column (d) of my Exhibit BLC-1, Oncor's 19 annual revenue requirement is decreased by the amount of $143,789,503 20 based on reducing the tax rate from 35% to 21 %. This decrease includes 21 a reduction to FIT expense and the attendant impacts of the tax rate 22 reduction that I previously discussed. I have provided this amount to 23 Company witness J. Michael Sherburne for inclusion in his allocation of 24 the functionalized revenue requirement to the individual rate classes. 25 Q. WHAT ADJUSTMENTS HAVE BEEN MADE TO THE REVENUE 26 REQUIREMENT FOR THE INCREASE IN INCOME TAXES RESULTING 27 FROM ONCOR'S INTERIM TCOS UPDATE APPROVED IN DOCKET 28 NO. 47988? 29 A. FIT expense was increased based on the increase in the return on rate 30 base resulting from the addition of transmission facilities after the 2016 Clutter Direct Oncor Electric Delivery FIT -Related Rate Reduction -6- 1176 1 calendar test year used in Docket No. 46957, Oncor's last base -rate case. 2 This incremental income tax expense was quantified in the Company's 3 amended Docket No. 47988 filing using the new 21 % FIT rate pursuant to 4 the TCJA. The FIT expense included in the baseline was also adjusted to 5 reflect a 21 % FIT rate. 6 Q. WHAT ADJUSTMENTS HAVE BEEN MADE TO THE REVENUE 7 REQUIREMENT FOR THE INCREASE IN INCOME TAXES RESULTING 8 FROM ONCOR'S DISTRIBUTION COST RECOVERY FACTOR ("DCRF") 9 FILING PENDING IN DOCKET NO. 48231? 10 A. FIT expense was increased based on the increase in the return on rate 11 base resulting from the addition of distribution facilities after the 2016 12 calendar test year used in Docket No. 46957, Oncor's last base -rate case. 13 The incremental income tax expense was quantified in the Company's 14 DCRF filing using the new 21 % FIT rate pursuant to the TCJA. 15 Q. PURSUANT TO THE FINAL ORDER IN DOCKET NO. 46957, HAS THE 16 COMPANY ESTABLISHED A REGULATORY LIABILITY FOR THE 17 EXCESS FIT COLLECTED IN RATES AT THE 35% FIT RATE? 18 A. Yes. A regulatory liability has been established to capture the excess 19 amounts collected at rates calculated using the 35% FIT rate. As of 20 March 31, 2018, the amount of the regulatory liability is $30,355,587. The 21 Company will continue to capture the excess amount collected until the 22 effective date of new rates approved in this proceeding. Mr. Sherburne's 23 direct testimony addresses the timing and methodology for refunding the 24 excess amount collected. 25 IV. IMPACT OF EXCESS ADFIT RESULTING FROM THE TAX RATE 26 CHANGE ON ONCOR'S REVENUE REQUIREMENT 27 Q. PLEASE EXPLAIN EXCESS ADFIT. 28 A. ADFIT represent the amount of taxes that the Company will pay in future 29 years due to a timing difference between the book treatment of an asset 30 for accounting and ratemaking purposes and the tax treatment based on Clutter Direct Oncor Electric Delivery FIT -Related Rate Reduction -7- 1177 1 the IRC. When there is a reduction in the corporate tax rate, the ADFIT is 2 reduced because the Company will pay less tax in the future as a result of 3 the lower tax rate. This creates "excess" ADFIT. Because the excess 4 ADFIT is no longer a FIT liability to the federal government, it should be 5 returned to customers. As such, the balance in excess ADFIT is 6 amortized as a reduction to income tax expense as the related ADFIT 7 reverses over the lives of the related assets. Certain excess ADFIT is 8 statutorily protected by the normalization provisions of § 13001(d) of the 9 TCJA and is often referred to as "protected." Other excess ADFIT not 10 statutorily protected by the normalization provisions of the TCJA is 11 referred to as "non -protected." 12 Q. PLEASE EXPLAIN PROTECTED EXCESS ADFIT. 13 A. The balance in protected excess ADFIT represents the excess amount of 14 ADFIT attributable to timing differences from the use of accelerated 15 depreciation methods and shorter lives for income tax purposes as 16 compared to the use of straight-line depreciation over longer asset lives 17 for book depreciation and ratemaking purposes. The ratemaking 18 treatment for this excess ADFIT is "protected" under the normalization 19 provisions of the TCJA whereby the reversal or "give -back" of the benefit 20 of these amounts can be accomplished no faster than over the lives of the 21 properties to which they relate. 22 Q. PLEASE EXPLAIN NON -PROTECTED EXCESS ADFIT. 23 A. The balance in non -protected excess ADFIT represents the excess 24 amount of ADFIT attributable to certain timing differences that originated 25 when the corporate tax rate was higher than the current tax rate of 21% 26 that are not protected under normalization provisions of the TCJA. These 27 temporary timing differences primarily arise from the treatments of 28 regulatory assets, employee retirement costs, and certain other financial 29 events whereby the costs are expensed for income tax purposes but are Clutter Direct Oncor Electric Delivery FIT -Related Rate Reduction WE 1178 1 capitalized and amortized or included in the cost of depreciable assets for 2 book and ratemaking purposes. 3 Q. DID ONCOR HAVE ANY EXCESS ADFIT ON ITS BOOKS BEFORE THE 4 ENACTMENT OF THE TCJA? 5 A. Yes, in Docket No. 46957 Oncor included $2,252,074 of plant -related 6 excess ADFIT as a reduction to rate base. It also included $857,865 of 7 excess ADFIT amortization as a reduction to FIT expense. 8 Q. WHAT IS THE TOTAL AMOUNT OF EXCESS ADFIT THAT THE 9 COMPANY RECORDED AS A RESULT OF THE TCJA? 10 A. In December 2017, the Company recorded a regulatory liability in the 11 amount of $1,258,366,275 for excess ADFIT related to deferred tax 12 liabilities on plant -related temporary differences. A regulatory asset of 13 $159,754,360 and a regulatory liability of $156,742,305 were also 14 recorded for excess ADFIT related to deferred tax assets and liabilities on 15 other temporary differences such as employee retirement costs and 16 regulatory assets. 17 Q. HOW DOES THE COMPANY PROPOSE TO RETURN THE PLANT- 18 RELATED EXCESS ADFIT RESULTING FROM THE TCJA TO 19 CUSTOMERS? 20 A. The plant -related excess ADFIT will be amortized over the remaining life 21 of the plant to which the deferred tax relates according to the Average 22 Rate Assumption Method ("ARAM"). As a regulated utility, Oncor is 23 subject to the normalization rules found in IRC Sections 168(f) and 24 168(i)(9). The TCJA expands on the requirements of the normalization 25 rules and requires that certain ADFIT resulting from accelerated 26 depreciation established at rates higher than 21 % be reversed no faster 27 than the ARAM. The ARAM reverses the ADFIT as the related temporary 28 difference reverses (i.e., when book depreciation exceeds tax 29 depreciation). A reversal of protected excess ADFIT faster than ARAM 30 would result in a normalization violation, which would preclude the Clutter Direct Oncor Electric Delivery FIT -Related Rate Reduction -9- 1179 1 Company from claiming accelerated tax depreciation on its tax return. 2 The Company is proposing to amortize all plant -related excess ADFIT 3 over the remaining life of the property that generated the original ADFIT 4 using the ARAM. 5 Q. WHAT IS THE ANNUAL AMOUNT OF PLANT -RELATED EXCESS 6 ADFIT AMORTIZATION BASED ON THE ARAM? 7 A. The annual amount of plant -related excess ADFIT amortization based on 8 the ARAM is $32,230,785. 9 Q. HOW WAS THIS AMOUNT OF PLANT -RELATED EXCESS ADFIT 10 AMORTIZATION DETERMINED? 11 A. Oncor uses the tax fixed asset solution, PowerTax, to track its tax 12 depreciation and plant -related ADFIT. PowerTax is specifically designed 13 for the utility industries and other asset -intensive companies. It uses a 14 data gathering and preparation system, collecting and processing book 15 amounts and tax adjustments using built-in routines. PowerTax maintains 16 the detailed vintage records of deferred income taxes related to utility 17 plant and tracks the provision and reversal of deferred income taxes. 18 Deferred taxes are maintained in PowerTax for deferral accounting and 19 FAS 109 liability accounting. PowerTax tracks the reversals of timing 20 differences normalized at rates different than the current corporate income 21 tax rate and calculates the excess ADFIT reversal using the ARAM. 22 In order to calculate an annual amount of plant -related excess 23 ADFIT using PowerTax, I first calculated the amount of book depreciation 24 that is included in the Company's current rates or is expected to be 25 included in rates during the current year applicable to plant in service at 26 December 31, 2017. The amount of book depreciation for the Distribution 27 and Transmission functions is shown in my Exhibit BLC-4. This amount of 28 book depreciation and an amount of tax depreciation applicable to plant in 29 service at December 31, 2017 was entered into PowerTax for the 2018 tax 30 year in order to calculate an amount of excess ADFIT reversal. I discuss Clutter Direct Oncor Electric Delivery FIT -Related Rate Reduction -10- 1180 1 how I have determined the amount of book depreciation included in the 2 Company's current rates in Section V of my direct testimony. 3 Q. HOW DOES THE COMPANY PROPOSE TO ADDRESS THE NON- 4 PLANT -RELATED EXCESS ADFIT? 5 A. The non -plant -related ADFIT are not subject to the normalization 6 provisions of the IRC and, therefore, are not subject to the ARAM. They 7 have, however, been normalized in accordance with 16 Tex. Admin. Code 8 § 25.231(b)(1)(D) (TAC). Therefore, the Company is proposing to 9 amortize the non -plant excess ADFIT over the same life as the reversal of 10 the underlying temporary differences. Please refer to my Exhibit BLC-3 11 for the amortization schedule of the non -plant -related excess ADFIT. As 12 shown on page 1, column (d), line 37 of this exhibit, the first year of 13 amortization results in a net increase to the Company's cost of service of 14 $5,973,657 based on the reversal of the related underlying temporary 15 differences. 16 Q. WILL ONCOR PRESERVE THE EXCESS ADFIT IN ITS ENTIRETY FOR 17 REVIEW IN A FUTURE BASE -RATE PROCEEDING? 18 A. Yes. Oncor proposes to track both the plant -related and non -plant -related 19 excess ADFIT amortization and preserve any over or under -collection in a 20 regulatory liability or regulatory asset, respectively. 21 Q. ARE THERE ANY OTHER ATTENDANT IMPACTS TO THE 22 COMPANY'S REVENUE REQUIREMENT BASED ON THE CHANGED 23 FIT EXPENSE FOR THE EXCESS ADFIT AMORTIZATION? 24 A. Yes. As I discussed earlier in my testimony, a reduction to FIT expense 25 results in additional reductions to O&M Expense, Other Taxes and Return 26 on Rate Base. Please refer to column (f) on page 1 of my Exhibit BLC-1 27 for the additional reductions to cost of service that result in a $37,660,602 28 reduction to Oncor's revenue requirement. Clutter Direct Oncor Electric Delivery FIT -Related Rate Reduction -11- 1181 1 Q. HAS THE REDUCTION IN REVENUE REQUIREMENT BEEN 2 FUNCTIONALIZED BETWEEN WHOLESALE TRANSMISSION AND 3 RETAIL TRANSMISSION AND DISTRIBUTION ("T&D")? 4 A. Yes. Please refer to pages 2 and 3 of my Exhibit BLC-1 for the 5 Company's change in revenue requirement that is attributable to the 6 Wholesale Transmission and the Retail T&D functions, respectively. The 7 change in revenue requirement has been functionalized in accordance 8 with General Instruction No. 11 of the Commission's Investor -Owned 9 Utility Transmission & Distribution Cost of Service Rate Filing Package 10 instructions. 11 Q. WILL ONCOR INCLUDE THE NET EXCESS ADFIT REGULATORY 12 LIABILITY AS A REDUCTION TO RATE BASE IN FUTURE DCRF 13 APPLICATIONS? 14 A. Yes. Consistent with past regulatory treatment, the excess ADFIT will be 15 included as a reduction to rate base. Like ADFIT, excess ADFIT 16 represents cost-free capital and, therefore, should be deducted from rate 17 base to provide customers the benefit of such cost-free capital. In order to 18 remain consistent with the treatment of ADFIT, Oncor proposes to include 19 the updated balance of excess ADFIT related to distribution plant (which is 20 recorded as a regulatory liability) in its future DCRF applications. 21 V. DETERMINATION OF THE AMOUNT OF BOOK DEPRECIATION 22 EXPENSE INCLUDED IN ONCOR'S RATES 23 A. Distribution 24 Q. PLEASE DESCRIBE HOW YOU HAVE DETERMINED THE AMOUNT OF 25 DISTRIBUTION -RELATED BOOK DEPRECIATION EXPENSE 26 INCLUDED IN THE COMPANY'S RATES. 27 A. The Company's depreciation rates for each utility plant account were 28 approved in Oncor's most recent comprehensive base -rate proceeding, 29 Docket No. 46957, based on a 2016 calendar test year. Pursuant to the 30 DCRF rule, 16 TAC § 25.243, Oncor's distribution rates can be adjusted Clutter Direct Oncor Electric Delivery FIT -Related Rate Reduction -12 1182 1 through the approval of a DCRF. This rule provides for an adjustment to 2 rates for changes in certain distribution costs, which includes recovery of 3 incremental depreciation expense associated with new distribution plant 4 investment. Based on Oncor's pending DCRF filing in Docket No. 48231, 5 1 have applied the distribution depreciation rates established in Docket No. 6 46957 to the corresponding December 31, 2017 gross distribution plant 7 account balances in order to calculate the amount of calendar year 2018 8 distribution -related book depreciation expense included in rates. As 9 shown on my Exhibit BLC-4, the amount of distribution -related 10 depreciation expense is $389,560,827. This calculation reflects additional 11 investment made by the Company in its distribution system during 2017, 12 as incorporated in the DCRF filing. 13 Q. DOES ONCOR'S DCRF FILING INCLUDE ANY ADDITIONAL 14 ADJUSTMENTS FOR DISTRIBUTION -RELATED INVESTMENTS IN 15 INTANGIBLE OR GENERAL PLANT DURING 2017? 16 A. Yes. The Commission's DCRF rule defines distribution invested capital to 17 include intangible plant, communication equipment and networks, and 18 computer hardware used directly in the provision of electric service. The 19 Company's DCRF filing includes an increase in depreciation and 20 amortization expense for invested capital additions involving Federal 21 Energy Regulatory Commission ("FERC") Accounts 303, 391, and 397. 1 22 applied the appropriate depreciation and amortization rates from Docket 23 No. 46957 to the December 31, 2017 distribution -related portions of these 24 intangible and general plant account balances. As shown on Exhibit 25 BLC-4, $34,926,327 and $20,559,016 corresponds to the updated 26 amounts of intangible and general plant depreciation expense, 27 respectively, included for recovery in Oncor's rates. 28 Q. WHAT IS THE TOTAL AMOUNT OF DISTRIBUTION -RELATED 29 DEPRECIATION EXPENSE INCLUDED IN THE COMPANY'S RATES AS Clutter Direct Oncor Electric Delivery FIT -Related Rate Reduction -13- 1183 1 REFLECTED IN THE COMPANY'S DCRF FILING IN DOCKET NO. 2 48231? 3 A. The amount of distribution —related depreciation and amortization expense, 4 including distribution -related general and intangible plant investment, is 5 $389,560,827, as reflected in the Company's DCRF filing in Docket No. 6 48231 and shown on my Exhibit BLC-4. Once approved, this amount 7 corresponds to the amount of revenues provided for in rates to recover the 8 depreciation of distribution facilities. 9 Q. IF AN ADJUSTMENT OR MODIFICATION IS MADE TO PLANT- 10 RELATED AMOUNTS THAT HAVE BEEN INCLUDED IN THE 11 COMPANY'S DOCKET NO. 48231 DCRF FILING, WOULD THERE BE 12 AN IMPACT TO THE AMOUNTS REFLECTED IN THIS FILING? 13 A. Yes. The plant and plant -related depreciation amounts must be consistent 14 in these cases. 15 B. Transmission 16 Q. PLEASE DISCUSS HOW YOU HAVE DETERMINED THE AMOUNT OF 17 TRANSMISSION -RELATED DEPRECIATION EXPENSE INCLUDED IN 18 THE COMPANY'S RATES. 19 A. The Company's TCOS reflects depreciation rates for each transmission 20 utility plant account approved in Docket No. 46957 based on a 2016 21 calendar test year. I applied these approved transmission plant account 22 depreciation rates to the corresponding December 31, 2017 transmission 23 gross plant account balances in order to calculate the calendar year 2018 24 transmission book depreciation expense included in rates. This calculation 25 reflects the additional investment in the Company's transmission system 26 of approximately $592 million that was included in Oncor's Docket No. 27 47988 interim TCOS update for the period January 1, 2017 through 28 December 31, 2017. My Exhibit BLC-4 reflects the current amount of 29 transmission depreciation expense included in rates as approved in the 30 interim TCOS Docket No. 47988 in the amount of $223,800,425. Clutter Direct Oncor Electric Delivery FIT -Related Rate Reduction -14- 1184 1 Q. DOES THE INTERIM TCOS UPDATE IN DOCKET NO. 47988 INCLUDE 2 ADJUSTMENTS FOR TRANSMISSION -RELATED INVESTMENTS IN 3 INTANGIBLE OR GENERAL PLANT? 4 A. No. The interim TCOS rates approved in Docket No. 47988 only include 5 the recovery of new completed transmission additions recorded to FERC 6 Accounts 350 through 358. 7 C. General and Intangible Plant Depreciation and Amortization Expense 8 Included in Rates g Q. PLEASE DISCUSS HOW YOU HAVE DETERMINED THE AMOUNT OF 10 GENERAL AND INTANGIBLE PLANT -RELATED DEPRECIATION AND 11 AMORTIZATION EXPENSE INCLUDED IN THE COMPANY'S RATES. 12 A. With the exception of the additional amounts included in the Company's 13 DCRF filing in Docket No. 48231 that I have previously discussed, the 14 amount of intangible and general plant depreciation expense included in 15 current rates is at the same level as was approved in the Company's last 16 base -rate proceeding, Docket No. 46957. My Exhibit BLC-4 lists the 17 depreciation expense amounts collected in rates for each of the FERC 18 Accounts that are included in TCOS or DCRF in the amount of 19 $20,083,932. 20 Q. PLEASE SUMMARIZE HOW YOU DETERMINED THE AMOUNT OF 21 BOOK DEPRECIATION EXPENSE INCLUDED IN THE COMPANY'S 22 RATES. 23 A. In order to determine the amount of book depreciation expense included in 24 the Company's rates, I first obtained the amount of depreciation expense 25 that was approved in the Company's most recent base -rate proceeding, 26 Docket No. 46957. 1 then updated these amounts in order to reflect 27 increases in depreciation expense due to additions made in 2017 to 28 transmission, distribution, and certain general and intangible plant 29 accounts as reflected in the Company's DCRF filing pending in Docket No. 30 48231 and the interim TCOS update approved in Docket No. 47988. The Clutter Direct Oncor Electric Delivery FIT -Related Rate Reduction -15- 1185 1 total amount of book depreciation expense included in the Company's 2 rates is $633,445,184. As previously stated, should there be an 3 adjustment or modification to the plant -related amounts that have been 4 included in Oncor's DCRF filing in Docket No. 48231, there would also be 5 an impact to the amounts reflected in this filing. 6 VI. CONCLUSION 7 Q. PLEASE SUMMARIZE YOUR DIRECT TESTIMONY. 8 A. As a result of the TCJA's reduction in the corporate tax rate from 35% to 9 21 % and consistent with the Commission's final order in Docket No. 10 46957 and the requirement of the notice of approval in Docket No. 47988, 11 the amount of FIT included in Oncor's base rates is being adjusted in 12 order to reflect the TCJA FIT rate reduction. The excess ADFIT is also 13 being returned to customers by adjusting FIT expense. The overall impact 14 of applying the effect of the TCJA FIT rate reduction to Oncor's annual 15 revenue requirement results in an annual decrease of $181,450,105, as 16 shown on Exhibit BLC-1, page 1. 17 Q. DOES THIS CONCLUDE YOUR DIRECT TESTIMONY? 18 A. Yes. Clutter Direct Oncor Electric Delivery FIT -Related Rate Reduction -16- 1186 STATE OF TEXAS § COUNTY OF DALLAS § BEFORE ME, the undersigned authority, on this day personally appeared Bonnie L. Clutter, who, having been placed under oath by me, did depose as follows: My name is Bonnie L. Clutter. I am of legal age and a resident of the State of Texas. The foregoing direct testimony and the attached exhibits offered by me are, to the best of my knowledge, information, and belief, accurate, true and correct. SUBSCRIBED AND SWORN TO BEFORE ME by the said Bonnie L. Clutter this day of � , 2018. ``��tiPpypVA�� TER! SMART :r°;' fin: Notary Public, State of Texas Q� Comm. 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N NO 0)m k m m Co N � 7 O co I- ~ U- LL F- Q F u = < (0 < U CD A X N x CD w W a m W m -0 X N W W N C ^N C to r m X W co N CL co zz� 'J N a O; (1) O O C_Cpp ~ N N-0 a) d Cl) - N m x CC is x d •� a) y ca m .� U ��m O v 0 o f az am LL o° c z oCjd p.o oo ca X au CO cs ooc0 ocN c c cc oo0 acaU>' c W U E x o E c c 0 o cC N CoNNN U C a) � N -0� a dN roLL aa)rma < O O O `co co Ca)Q N lL X O O O 5 ao m C dE E m E o a) a) Em W HO o t- co E E E r<<< o <O I- c[ pU) << < < r N M V CtJ CD f� W m O �. N M 7 W W m N N N N N N N N N N m fo co m Co -22- 1192 U oo O N U m W (nU > WW O LLJF C.1Wzi m Z OW U W ? Q W QLu } cc CC ZWI- F J H W cc R 0) o Lo i, lo. v on o. N � m00 ce) Cl) m m m 7 m ,t cm0 0, ' lf n N m � r O "I OO,�OO V rnLLom tnmNtmm�co OOu1 O' N N n n m Co m ? m to nn In NcoO CO CAn ED r N 0 OO r O, m V N m m O r N r r 7 N N n 1;3 CD nm V C' � n n C o in m m N r N O O r� O r Co � T m N It UnO m N L n ' N N cor N m m N 1n m LL', m O m m N m COO m (O N m Nnnm V r Nm LCnm ri m N N m O N d' N n r m m N o CD n m L m m a, m 0 C N N O O O In It 0, In co O m o n co O O m m O m m m 0)C1 p m m m m n O O co �trt0N w m Co m m Nr 0 r n NNr mrm m N O n co n n v N m 0 CeO n CD V O 0 m N r Cl) 'ITn N n co m N m m N N a O d' O V N d' n O r N r r N (D m N r r O n N N N N O O O O m V 01LO 10 O m o m m m m m V m m n N m m V V Cm0 N m m m N r m 't o c i r; v Lo Un u, co of � o v a m of O � v iri co m m N 7 c7 m m O V O O r 0 m N Cn N N C o ,N- m N m r r cnD N N N r F- = LL LL f Q ¢ LL = U- LL y ¢ U ¢ N X mw U X w ^N d X N d uJ m m fn C C_ Lo r m W N o r d coIn a `n m Ed t _N N CS -p N N m- N C N E x N a, O O C C) ov ca)C EO p OO uo) O FL LOT O p d Z (0O 00 Z O C O 1 QE X - a N Ot O C O C CC O U LTCO E X 12 E ) N0 0 7 0 c C r ) U a) 0 p O m m_m C U T_N O , O NLLO C N ¢ U o LCLENN s ¢ o c o E E m E a a� aE X5,o X o 0 E E E a ao 0c>v It n¢¢C7¢ o 2 w ¢ oC� ¢ � r NCO V mnmrnoTNMvu,mnmOO r rr.-rrrrrNNNNcmN N�V t0mnm0,O NC7V NNNNcoNcococo -23- 1193 \ as | - (\/\k\§\k! k \_§ ;§;!)\ - - ��.. . !l....=....., 4 1194 -=II mom - - E d c " w�. E � a �� o E — ap s t t A 3 i E a0,`n ,nan aiZ 2ino¢sao¢eemm¢2 z �„ m °,oti may"+ rvry rvrv.m m m mmmm m u ° ry mrmmo.+rm a ,n ,er ma -25- 1195 qgl— p m - E _ a o E d N 2 E E c d i a 'o o � e -26- 1196 Exhibit BLC-4 Page 1 of 1 Oncor Electric Delivery Company Calculation of Depreciation in Rates As of December 31, 2017 Annual Annual Annual Depreciation Depreciation Depreciation Total Annual Docket No. Docket No. Docket No. Depreciation in Function FERC Account Description 46957 t't 47988 48231 Rates (2) 977 Intangible 303 Miscellaneous Intangible Plant - 7 year life 865,621 3,039,968 3,105,589 Intangible 303 Miscellaneous Intangible Plant - 5 year life 4,864,959 9,997,968 9,997,968 4,862,927 14,862,927 Intangible 303 Miscellaneous Intangible Plant - 8 year life 1,282,060 16,787,414 18,069,474 Intangible 303 . Miscellaneous Intangible Plant - 15 year life 7,012,640 34,926,327 41,938,967 Intangible Total Transmission 350 Land and Land Rights 4,316,803 4,316,8036,466,732 6,466,732 Transmission 352 Structures and Improvements 56,466,732 56,894,423 7,973,968 66,466,732 64,868,395 Transmission 353 Station Equipment 823 25,366,823 Transmission 354 Towers and Fixtures 61,188,976 61,188,976 Transmission 355 Poles and Fixtures 59 Transmission 356 Overhead Conductors and Devices 1,298,729 1,298,729 Transmission 357 Underground Conduit 1,049,260 1,049,260 456 Transmission 358 Underground Conductors and Devices 216,348,206 7,973,968 224,322,174 Transmission Total Distribution 360 Land and Land Rights 8,867 744,466 241,833 1,972,801 250,700 2,717,267 Distribution 361 Structures and Improvements 6,698,BB6 19,696,953 26,395,839 Distribution 362 Station Equipment , , 901 Distribution 363 Storage Battery Equipment 60,660,813 60,660,813 Distribution 364 Poles, Towers and Fixtures 34,902,935 34,902,935 Distribution 365 Overhead Conductors and Devices 16,871,974 16,871,974 Distribution 366 Underground Conduits 49,968,820 49,968,820 Distribution 367 Underground Conductors and Devices 50,246,334 50,246,334 Distribution 368 Line Transformers 38,257,559 38,257,559 Distribution 369 Services 28,929,288 28,929,288 Distribution 370 Meters (AMS) 8,875,012 8,875,012 Distribution 370 Meters 1,561,502 1,561,502 Distribution 371 Installations on Customers' Premises 13,803,791 13,803,791 Distribution 373 Street Lighting and Signal Systems - 7,452,219 326,101,516 333,553,735 Distribution Total General Plant 389 Land and Land Rights 15,212 15,21248 9, 3,654 General Plant 390 Structures and Improvements 3,659,448 3,231,641 3,65 ,41 General Plant 391 Office Furniture and Equipment (AMS) 725,123 General Plant 391 Office Furniture and Equipment 725 123 2,099,44003 10,823,947 12,2,355 General Plant 391 Office Furniture and Equipment - Computer Equipment General Plant 392 Transportation Equipment (AMS) 908,693 908,157 General Plant 392 Transportation Equipment 908,693 908 611 General Plant 393 394 Stores Equipment Tools, Shop and Garage Equipment (AMS) 4 692 4,692 General Plant General Plant 394 Tools, Shop and Garage Equipment 1,004,692 58 1,007,588 37,251 General Plant 395 Laboratory Equipment (AMS) 37 251 1,737,251 710,113 General Plant 395 Laboratory Equipment 1 737 710,113 General Plant 396 Power Operated Equipment 03,065 2,803,066 2,343,562 03,066 General Plant 397 Communication Equipment (AMS Routers) General Plant 397 Communication Equipment (AMS) 1,017,694 2,316,715 3,316,715 General Plant 397 Communication Equipment -Depreciated 1 107,036 1,310,802 2,417,838 General Plant 397 Communication Equipment - Amortized 318,705 General Plant 398 Miscellaneous Equipment 31 8,705 13,31 ,705 20,559,016 33,630,309 General Plant Total 20,083,932 223,800,425 389,560,827 633,445,184 i't Excludes Accounts/Amounts that have been updated in TCOS Docket No. 47988 and DCRF Docket No. 48231. (2) Amount in rates pending approval of DCRF Docket No. 48231. -27- 1197 WORKPAPERS FOR THE DIRECT TESTIMONY OF BONNIE L. CLUTTER 1198 BLC/W P-1 Page 1of1 Oncor Electric Delivery Company LLC Excess Accumulated Deferred Income Taxes Sponsor: B. L. Clutter Wholesale Retail Beginning Balances: Total Transmission T&D Plant -related' (1,927,733) (862,169) (1,065,564) TReform 1986 Tax 1986 (1,258,366,275) (562,797,978) (695,568,297) Tax (1,260,294,008) (563,660,146) (696,633,861) Non-plant-relatedl 159,754,360 23,388,416 136,365,944 Assets (156,742,305) (8,408,466) (148,333,838) Liabilities 3,012,056 14,979,950 (11,967,894) Total Excess ADFIT Balance (548,680,197) (708,601,755) (1,257,281,952) Estimated 2018 Amortization: Wholesale Retail Total Transmission T&D Plant -related' 32,230,785 14,415,056 17,815,729 Less: Amortization included in Docket 46957 (857,865) (383,676) (474,189) 31,372,920 14,031,380 17,341,540 Non-plant-relatedl (27,032,827) (3,067,704) (23,965,123) Assets 21,059,170 825,802 20,233,368 Liabilities (5,973,657) (2,241,902) (3,731,755) Annual Excess ADFIT Amortization 25,399,263 Net plant Factor 11,789,478 13,609,785 44.7245% 55.2755% 1The allocation of plant -related excess ADFIT between wholesale transmission and retail T&D is based on the net plant factor from Docket 46957. 2The allocation of non -plant -related excess ADFIT is based on the direct assignment or allocation factor used in Docket 46957 for the related ADFIT. 1199 i m Q o m of O r r r m O Q m N m N N b N '- 0 � N � ry w ri rNi o .-i v; ni m a ma o' Q ry m Q m ii o� Q m o N v`°i a .Q-i vQi ro� ry ti o n nmi n 01 r ,-1 rt1 C tQif zj Q ^ ^ ' �c N� o vNmi w v`Vi m N m o m a ry Q m a m rn uri ry Q m �p �p v�i o Z Z N X X y ry N N N N O N N N m j J• O 0 a 0 0 a a a a a a a a a a u o N m a o m v`�i iry m y .ri Q •� N m� v 00 O W .� e1 �U rl •-� ti � N Y N UO1 I oml N h m Om0 N N Q O� O m Of 16 N N N V1 ei V N N N N 00 N N M� m N tp N N lD m N o Q m 0 m0 Q� 06 Z Z d X X y y N m I N N N N N m> N m o 0 6 6 0 o a a a a a a a a a 6 6 o Y c Nni n v o m� iry o n e S N r .-1 T of N ^m N O r Om0 O�1 n^ mr Q a N Q O N OOi n O N r� m~ RI N O r N N m IOn y O O m mT a+ m n Q T N N of .,- 0 n n o in m m Q a Z Z Z D• N m� 0 m N On N m mo-� o vO1i m o m voi m+ m utOi '+_ � n m O �m m lmpW�O`O~.O..Nm m.Q+ o •— �v � N Y1 N m vmi r+ �o 'L m m N h of O T N m m p T N N N Q O r N VTi r M m b v u�mi o m Q m m e m a Z ul u O « « U « « « mN « N � a o m w rno �N mO m uao �o mti mm m 0 m m mT �oa mo S m NQ N tm0 V O �D n N rl r O N N m t- E - p t- Q C mLL w o_ H e w x" y c a � m� E <� J a c i � a "' �❑ E v p c v x � N W a` c F Oa a c c c c o w y a c y w¢ ? t7 m ` w > g w V u m m a 10 a n E a LL LL o c a 0 .°. rt v o a q m oat u n p W m co_ E v a E — vo a o o o 0 0 v10i an o e. ¢ 2 Z d 0 0[ z p c z c s¢ Z Z a r- 1200 M m a' a C n 01 h V n M N lD M tD Ol O h O O N0 m 0 m m C O C D1 00 N N ti C O N m .-i m N m O Q1 m \ .-I JGOO h W N h l0 Ol l.Il 01 V Ql O M m N m N N V1 n 00 f` M W Dl n N V �-i v N o r N 00 Ot W Ql 01 W m V1 N O V1 f� r c a n O N e•i 00 lLl n Q7 Vl ei It'1 M On tG d f0 O Vl N 01 Lb 'u •�•• O O lD lD m 11 lO 00 LD 00 00 Dl LD N .ti lD lD lD w m V lD N c V1 ci Vl .-i Ql .-1 l0 O r LD C' o N h LD O 0 t\ m .-I LD Qt aD Ol N N Ql GO V1 00 V1 w N w .-i Ol W O Q\ C M a o0 M .i N O h m lD d' V1 .--1 Dl .-+� '-I V N N W .-i I m N N M G w Vl M W e-I ID N lD V1 N V f�+l M 0 11 � C � C Q n O O1 IC o e o e o° ^_� Q1 m 00 (n 00 .-1 r 01 N .--� n a+ .--� V1 O M ID lO .-1 w 10 O V m 7 Ol m 01 m Z .�.. 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N c c C LL d d d d d d C C C C C C C C C C C C G C C C G C C C d d d d d d d d d d d d d d d d d d d U' U' 'U C7 l7 LD 0 V` C7 U' C7V l7 U'U 0 0lD 1202 M M do m c O co o_ m 'u of N iF C. Y C v O C u � c 3 � c C Q c t� O u1 •_ O1 N OI 2 O cr r N — Y �7 u 7 O c O C Q c C O A N U v f0 m W I^ c a m o 00 00 m n c C O r T Vl 1� Ul M ID O Dl Q1 lD lD N i� M Z W 10 N w 00 M 'i M 00 ID M N Dl e•1 N r �--1 Dl u Y C 7 M ti a LL .c G N A p O O n 0p 00 ti M N ti lD V1 h 00 I� C Q1 O1 N iD .-I O C C D1 N I� 00 lD tD N O I� U J Y Z 0~ 10 w w O N W M m 0 ��i bt 13 '-I N N N N ul ONO M c 1� W u C 7 N N 3 p o V V M CO in u N � Y a O Cc W n N QW u m m O M� O1 QC r u V O h 0 kD lD N O I� 0 0 O 0n c v m m v m Ln m ti c .O a 6 n e .1 w m N O N1 1W Q G cO_ 7 ~ A C A fh O U O N U a 3 moo�Nvv,nn uui M a 1203 SOAH DOCKET NO.473-17-3196 PUC DOCKET NO.46957 APPLICATION OF ONCOR ELECTRIC § BEFORE THE DELIVERY COMPANY LLC FOR § PUBLIC UTILITY COMMISSION AUTHORITY TO CHANGE RATES § OF TEXAS ONCOR ELECTRIC DELIVERY COMPANY LLC'S PETITION FOR REVIEW OF CITIES' ORDINANCES/RESOLUTIONS AND MOTION TO CONSOLIDATE TO THE HONORABLE CASEY A. BELL, ADMINISTRATIVE LAW JUDGE: NOW COMES Oncor Electric Delivery Company LLC ("Oncor"), Petitioner, appealing rate decisions adopted by the Cities/Towns of Copperas Cove, Garland, Grand Prairie, Hillsboro, Killeen, Lufkin, Parker, Rowlett, Sachse, Southlake, The Colony, Tyler, University Park, and Waco ("Cities"). These appeals are filed pursuant to Section 33.051 of the Public Utility Regulatory Act ("PURA"), Tex. Util. Code Title 2. In support of these appeals and motions, Oncor would show the following: I. ONCOR'S REQUESTED RATE INCREASE On March 17, 2017, Oncor filed with the Public Utility Commission of Texas ("Commission") a petition and statement of intent to increase its electric utility rates to be charged within the areas over which the Commission has original jurisdiction. That petition and statement of intent were assigned Commission Docket No. 46957. On or about March 17, 2017, Oncor filed a similar petition and statement of intent with each incorporated city having original jurisdiction over Oncor's distribution rates within the city. II. ACTION BY THE CITIES OF In the ordinances/resolutions identified in the table below, the following Cities adopted ordinances/resolutions that denied Oncor's requested change and kept Oncor's existing distribution rates in effect: - 1 - City/Town Date of Ordinance or Resolution Copperas Cove 7/18/2017 Garland 8/1/2017 Grand Prairie 8/1/2017 Hillsboro 8/1/2017 Killeen 7/25/2017 Lufkin 8/1/2017 Parker 8/1/2017 Rowlett 8/1/2017 Sachse 8/7/2017 Southlake 8/1/2017 The Colon 7/18/2017 Tyler 7/26/2017 University Park 8/1/2017 Waco 7/18/2017 Copies of the ordinances/resolutions are attached. III. JURISDICTION The Commission has jurisdiction over these appeals pursuant to Sections 32.001(b), 33.051, and 33.053 of PURA. IV. MOTION TO CONSOLIDATE Oncor requests that its appeals of the ordinances/resolutions of Cities be consolidated with Docket No. 46957. These appeals involve issues of law and fact common to those involved in Docket No. 46957, and separate hearings of these appeals and Docket No. 46957 would result in unwarranted expense, delay, or substantial injustice. In the alternative, if this Motion to Consolidate is denied, Oncor requests that these appeals be assigned a new docket number by the Commission. V. CONCLUSION Oncor respectfully requests that Your Honor enter an order consolidating these appeals of the ordinances/resolutions adopted by Cities with Docket No. 46957. Oncor further respectfully requests that upon final hearing, Oncor be granted the rate relief as -2- requested in its petition and statement of intent. Oncor further requests all other and further relief to which it may be entitled. Respectfully submitted, Oncor Electric Delivery Company LLC By: 'v/AU Matthew C. Henry State Bar No. 00790870 Jo Ann Biggs State Bar No. 02312400 Vinson & Elkins LLP Trammell Crow Center 2001 Ross Avenue, Suite 3700 Dallas, Texas 75201-2975 Telephone: (214) 220-7700 Facsimile: (214) 220-7716 Howard V. Fisher State Bar No. 07051500 Oncor Electric Delivery Company LLC 1616 Woodall Rodgers Freeway Dallas, Texas 75202-1234 Telephone: 214-486-3026 Facsimile: 214-486-3221 ATTORNEYS FOR ONCOR ELECTRIC DELIVERY COMPANY LLC CERTIFICATE OF SERVICE It is hereby certified that a copy of the foregoing has been hand delivered or sent via overnight delivery or first class United States mail, postage prepaid, to all parties of record in this proceeding and to each said municipality, on this the %%day of August 2017. -3- RESOLUTION NO. 2017-24 A RESOLUTION OF THE CITY OF COPPERAS COVE, TEXAS FINDING THAT ONCOR ELECTRIC DELIVERY COMPANY LLC'S ("ONCOR" OR "COMPANY") APPLICATION TO CHANGE RATES WITHIN THE CITY SHOULD BE DENIED; FINDING THAT THE CITY'S REASONABLE RATE CASE EXPENSES SHALL BE REIMBURSED BY THE COMPANY; 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 WHEREAS, the City of Copperas Cove, Texas ("City") is an electric utility customer of Oncor Electric Delivery Company LLC ("Oncor" or "Company"), and a regulatory authority with an interest in the rates and charges of Oncor; and WHEREAS, the City is a member of the Steering Committee of Cities Served by Oncor ("Steering Committee"), a coalition of similarly situated cities served by Oncor that have joined together to efficiently and cost effectively review and respond to electric issues affecting rates charged in Oncor's service area; and WHEREAS, on or about March 17, 2017, Oncor filed with the City an application to increase system -wide transmission and distribution rates by $317 million or approximately 7.5% over present revenues. The Company asks the City to approve an 11.8% increase in residential rates and a 0.5% increase in street lighting rates; and WHEREAS, the Steering Committee is coordinating its review of Oncor's application and working with the designated attorneys and consultants to resolve issues in the Company's filing; and WHEREAS, through review of the application, the Steering Committee's consultants determined that Oncor's proposed rates are excessive; and WHEREAS, the Steering Committee's members and attorneys recommend that members deny the Application; and NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPERAS COVE, TEXAS: Section 1. That the rates proposed by Oncor to be recovered through its electric rates charged to customers located within the City limits, are hereby found to be unreasonable and shall be denied. 7371306.1 I Section 2. That the Company shall continue to charge its existing rates to customers within the City. Section 3. That the City's reasonable rate case expenses shall be reimbursed in full by Oncor within 30 days of the adoption of this Resolution. Section 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. Section 5. That 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 18th day of July, 2017. Frank Seffrood Mayor, City of Copperas Cove ATTEST: Lucy C--,I ch, City Secretary APPROVED AS TO FORM: Denton, avarro ocha, Bernal, Hyde & Zech, P.C., City Attorney 7371306.1 2 RESOLUTION NO: 10293 A RESOLUTION OF THE CITY OF GARLAND, TEXAS FINDING THAT ONCOR ELECTRIC DELIVERY COMPANY LLC'S ("ONCOR" or "company") APPLICATION TO CHANGE RATES WITHIN THE CITY SHOULD BE DENIED; FINDING THAT THE CITY'S REASONABLE RATE CASE EXPENSES SHALL BE REIMBURSED BY THE COMPANY; DECLARING AN EFFECTIVE DATE; AND REQUIRING NOTICE OF THIS RESOLUTION TO THE COMPANY AND LEGAL COUNSEL WHEREAS, the City of Garland, Texas ("City") is an electric utility customer of Oncor Electric Delivery Company LLC ("Oncor" or "Company"), and a regulatory authority with an interest in the rates and charges of Oncor; and WHEREAS, the City is a member of the Steering Committee of Cities Served by Oncor ("Steering Committee"), a coalition of similarly situated cities served by Oncor that have joined together to efficiently and cost effectively review and respond to electric issues affecting rates charged in Oncor's service area; and WHEREAS, on or about March 17, 2017, Oncor filed with the City an application to increase system -wide transmission and distribution rates by $317 million or approximately 7.5% over present revenues. The Company asks the City to approve an 11.8% increase in residential rates and a 0.5%- increase in street lighting rates; and WHEREAS, the Steering Committee is coordinating its review of Oncor's application and working with the designated attorneys and consultants to resolve issues in the Company's filing; and WHEREAS, through review of the application, the Steering Committee's consultants determined that Oncor's proposed rates are excessive; and WHEREAS, the Steering Committee's members and attorneys recommend that members deny the Application; and NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GARLAND, TEXAS: Section 1 That the rates proposed by Oncor to be recovered through its electric rates charged to customers located within the City limits, are hereby found to be unreasonable and shall be denied. Section 2 That the Company shall continue to charge its existing rates to customers within the City. Section 3 That the City's reasonable rate case expenses shall be reimbursed in full by Oncor within 30 days of the adoption of this Resolution. Section 4 This Resolution shall become effective from and after its passage. Section 5 That 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 1st day of August, 2017. n� ATT ST: City Se retar Published: CITY OF GARLAND, TEXAS 1) CERTIFIED COPY OF RECORD STATE OF TEXAS § COUNTY OF DALLAS § 1, THE UNDERSIGNED CITY SECRETARY FOR THE CITY OF GARLAND, TEXAS, A GOVERNMENTAL SUBDIVISION OF THE STATE OF TEXAS, IN THE PERFORMANCE OF THE FUNCTIONS OF MY OFFICE, HEREBY CERTIFY THAT THE ATTACHED RECORD IS A FULL, TRUE AND CORRECT COPY OF: Resolution No. 10293 — Oncor Electric Delivery Company LLC's Application to Change Rates Within the City - Denial AS THE SAME APPEARS OF RECORD IN MY OFFICE, AND THAT I AM THE LAWFUL POSSESSOR AND HAVE LEGAL CUSTODY OF SAID RECORD. WITNESS MY HAND ON THIS THE 8`h DAY OF August 2017. i4xz Ioyce land wl City Secretary SIGNED BEFORE ME, the undersigned authority, on this the 81h day of August 2017. ELISA MORALES Notary ID #f 1242845% My Commission Expires y�ao' February 9, 2020 NOTARY PUBLIC IN AND FOR THE STATE OF TEXAS RESOLUTION NO.4897-2017 A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS FINDING THAT ONCOR ELECTRIC DELIVERY COMPANY LLC'S ("ONCOR" OR "COMPANY") APPLICATION TO CHANGE RATES WITHIN THE CITY SHOULD BE DENIED; FINDING THAT THE CITY'S REASONABLE RATE CASE EXPENSES SHALL BE REIMBURSED BY THE COMPANY; 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 WHEREAS, the City of Grand Prairie, Texas ("City") is an electric utility customer of Oncor Electric Delivery Company LLC ("Oncor" or "Company"), and a regulatory authority with an interest in the rates and charges of Oncor; and WHEREAS, the City is a member of the Steering Committee of Cities Served by Oncor ("Steering Committee"), a coalition of similarly situated cities served by Oncor that have joined together to efficiently and cost effectively review and respond to electric issues affecting rates charged in Oncor's service area; and WHEREAS, on or about March 17, 2017, Oncor filed with the City an application to increase system -wide transmission and distribution rates by $317 million or approximately 7.5% over present revenues. The Company asks the City to approve an 11.8% increase in residential rates and a 0.5% increase in street lighting rates; and WHEREAS, the Steering Committee is coordinating its review of Oncor's application and working with the designated attorneys and consultants to resolve issues in the Company's filing; and WHEREAS, through review of the application, the Steering Committee's consultants determined that Oncor's proposed rates are excessive; and WHEREAS, the Steering Committee's members and attorneys recommend that members deny the Application; and NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS: Section 1. That the rates proposed by Oncor to be recovered through its electric rates charged to customers located within the City limits, are hereby found to be unreasonable and shall be denied. Section 2. That the Company shall continue to charge its existing rates to customers within the City. RESOLUTION NO.4897-2017 Page 2 of 2 Section 3. That the City's reasonable rate case expenses shall be reimbursed in full by Oncor within 30 days of the adoption of this Resolution. Section 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. Section 5. That 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 1st day of August, 2017. APPROVED: Ro en, Mayor ATTEST: APPROVED AS TO FORM: STATE OF TEXAS § COUNTY OF HILL § CITY OF HILLSBORO § Resolution No. 112017=08-34 RESOLUTION BY THE CITY OF HILLSBORO ("CITY") DENYING THE APPLICATION TO INCREASE RATES SUBMITTED BY ONCOR ELECTRIC DELIVERY COMPANY LLC ON OR ABOUT MARCH 17, 2017; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; AND MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT WHEREAS, Oncor Electric Delivery Company LLC ("Oncor" of "Company") filed a Statement of Intent with the City on or about March 17, 2017 to increase its revenues by approximately $317 million, which equates to an overall increase of approximately 7.5% in revenue; and WHEREAS, Oncor proposes to implement its proposed increase in rates on or about April 21, 2017; and WHEREAS, on or before April 21, 2017, the City took action to suspend Oncor's proposed effective date of April 21, 2017 for the statutorily allowed period of ninety (90) days, to July 20, 2017; and WHEREAS, Oncor agreed to extend the deadline for final City action from July 20, 2017 to August 19, 2017; and WHEREAS, Oncor failed to establish that its overallrevenue request resulted in no more than an amount that will permit Oncor a reasonable opportunity to earn a reasonable return on the utility's invested capital used and useful in providing service to the public in excess of the utility's reasonable and necessary operating expenses; and WHEREAS, Oncor failed to establish that its proposed rates were just and reasonable; and WHEREAS, 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 and courts of law and to retain consultants to review Oncor's rate application subject to AOC's approval. Resolution R2017-08-34 rage 1 of 2 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HILLSBORO, TEXAS Section 1. The findings set out in the preamble ate in all things approved and incorporated herein as if fully set forth. Section 2. Oncor failed to show that its proposed rates are just and reasonable. Section 3. The City hereby DENIES Oncor's request to increase rates and in support thereof finds that: a) The Statement of Intent fails to provide sufficient information to justify the requested increase in revenue or to justify the changes set forth in the attached tariffs; and b) The Statement of Intent fails to provide sufficient information to justify the adoption of the rate base, expenses, investment, return on equity, and other rate issues. Section 4. As a courtesy, a copy of this resolution shall be sent to Mr. Stephen N. Ragland, Vice President -Regulatory; Oncor,1616 Woodall Rodgers Expressway, Dallas, Texas, 75202; and to Mr. Alfred R. Herrera, Herrera & Boyle, PLLC, 816 Congress Ave., Suite 1250, Austin, Texas 78701. Section 5. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 6. This resolution shall become effective from and after its passage. Section 7. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 8. This resolution shall become effective from and after its passage. ADOPTED this the 1" day of August, 2017. *Edithurner Omberg, Mayor ATTEST: Karen S. Warren, City Secretary Page 2 of 2 Resolution R2017-08-34 RESOLUTION NO. A RESOLUTION OF TI-IE CITY OF KILLEEN, TEXAS FINDING THAT ONCOR ELEC'I'RIC DELIVEIZY COMPANY LLCS (1-ONCOR" OR "COMPANY") APPLICATION TO CHANGE RATES WITHIN THE CITY SHOULD BE DENIED; FINDING THAT THE- cin , REASONABLE RA:I'E CASE EXPENSES SHALL BE REIMBURSED BYTIiE COMPANY; FINDING THAT THE MEETING AT WHICH THIS RESOLUTION IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED 13Y LAW; REQUIRING NOTICE OF THIS PLE, SOLUTION TOP THE COMPANY AND LEGAL COUNSEL. WHEREAS, the City of Killeen., Texas ("City") is an electric utility customer of Oncor Electric Delivery Company LI,C (*'Oncor" or "Company"), and a regulatory authority with an interest in the rates and charges of Oncor; and WHEREAS, the City is a member of the Steering Committee of'Cities Served by Oncor ("Steering Committee"), a coalition of similarly situated cities served by Oncor that have joined together to efficiently and cost effectively review and respond to electric issues alTecting rates charged in Oncar's service area, and W11EREAS, on or about Ntlarch 17, 2017. Oncor filed with the City an application to increase system -vide transmission and distribution rates by $317 million or approximately 7.5% over present revenues, The Company asks the City to 3PP"Ove an 11.8% increase in residential rates and a 0.5% increase in street lighting rates; and WIJEIZE.AS, the Steering Committee is coordinating its review of Oncor's application n and working with the designated attorneys and consultants to resolve issues in the Company's filing: and - WHEREAS. through review of the application, the Steeiin(, Committee's consultants determined that Oncor,,, proposed rates are excessive; and W1 IEREAS. the. Steering Committee's members and attorneys recommend that members deny the Application-, and NOW. Till"REFOIZE, 131.' IT 01�DAINED BY Tilt.", cf]'Y COt)NCII, 01" CITY 01' KII.J.,EEN, TEXAS: Section 1, That the rates proposed by Oncor to be recovered through its electric rates thin tile city limits, are hereby found to be unreasonable and charge(] to customers located wi shall be denied. r Section 2. That the Company shall continue to charge its existing rates to customers within the City. Section 3. That the City's reasonable rate case expenses shall be reimbursed in frill by Oncor within 30 days of the adoption of this Resolution. Section 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. Section 5, That a copy of this Resolution shall be sent to Oneor, Care of Howard Fisher, Oncor Electric Deliv,.ry Company, 1.1 C, 1616 \Woodall. Rodgers Free Gay, Dallas.. 'Texas 75202 and to Thomas Brocato, Counsel to file Steering Committee, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725. l'ASS.1:',l) AND APPROVED this 25`h day of - Z�41- f1 l 3} ti 1 Dianna Barker City Secretary. A1113ROVED AS TO FORM: Kathryn 1-1. Davis City Attorney 2 RESOLUTION NO. 2017 - 0 Q 50 RESOLUTION BY THE CITY OF LUFKIN, TEXAS, ("CITY") DENYING THE APPLICATION TO INCREASE RATES SUBMITTED BY ONCOR ELECTRIC DELIVERY COMPANY LLC ON OR ABOUT MARCH 17, 2017; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; AND MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT WHEREAS, Oncor Electric Delivery Company LLC ("Oncor" or "Company") filed a Statement of Intent with the City on or about March 17, 2017 to increase its revenues by approximately $317 million, which equates to an overall increase of approximately 7.5% in revenue; and WHEREAS, Oncor proposes to implement its proposed increase in rates on or about April 21, 2017, and WHEREAS, on or before April 21, 2017, the City took action to suspend Oncor's proposed effective date of April 21, 2017 for the statutorily allowed period of ninety (90) days, to July 20, 2017; and WHEREAS, Oncor agreed to extend the deadline for final City action from July 20, 2017 to August 19, 2017; and WHEREAS, Oncor failed to establish that its overall revenue request resulted in no more than an amount that will permit Oncor a reasonable opportunity to earn a reasonable return on the utility's invested capital used and useful in providing service to the public in excess of the utility's reasonable and necessary operating expenses; and WHEREAS, Oncor failed to establish that its proposed rates were just and reasonable; and WHEREAS, 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 reirnburse 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 and courts of law and to retain consultants to review Oncor's rate application subject to AOC's approval. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUFKIN, TEXAS, THAT: Section 1. The findings set out in the preamble are in all things approved and incorporated herein as if fully set forth. Section 2. Oncor failed to show that its proposed rates are just and reasonable. Section 3. The City hereby DENIES Oncor's request to increase rates and in support thereof finds that: a) The Statement of Intent fails to provide sufficient information to justify the requested increase in revenue or to justify the changes set forth in the attached tariffs; and b) The Statement of Intent fails to provide sufficient information to justify the adoption of the rate base, expenses, investment, return on equity, and other rate issues. Section 4. As a courtesy, a copy of this resolution shall be sent to Mr. Stephen N. Ragland, Vice President -Regulatory, Oncor, 16i6 Woodall Rodgers Expressway, Dallas, Texas, 75202; and to Mr. Alfred R. Herrera, Herrera & Boyle, PLLC. 816 Congress Ave., Suite 1250, Austin, Texas 78701. Section 5. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 6. This resolution shall become effective from and after its passage. Section 7. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 8. This resolution shall become effective from and after its passage. PASSED AND APPROVED this 1" day of August, 2017. Bob F. Brown, Mayor ATTEST: A' ldu-(,L ✓�� Kara Atwood, City Secretary THE STATE OF TEXAS COUNTY OF ANGELINA THE CITY OF LUFKIN i. Kara Atwood, City Secretary of the City of Lufkin, Texas, do hereby certliv that th above and for omg is a true and correct copy of C1_7- 0t7WD approved by the city council o the City of Lufkin. Texas &.W Kara Atwood City Secretary of the City of Lufkin, Texas ORDINANCE NO.751 (Oncor Electric Delivery Company LLC Rate Change Denial) AN ORDINANCE DENYING THE PROPOSED CHANGE IN RATES OF ONCOR ELECTRIC DELIVERY COMPANY LLC, FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW, AND DECLARING AN EFFECTIVE DATE OF THIS ORDINANCE. BE IT ORDAINED BY THE CITY COUNCIL OF PARKER, TEXAS: SECTION 1. That the proposed change in rates filed with the Governing Body of this municipality by Oncor Electric Delivery Company LLC on March 17, 2017, are hereby denied and disapproved, and Oncor Electric Delivery Company LLC shall continue to provide electric delivery service within this municipality in accordance with its rate schedules and service regulations in effect within this municipality on March 17, 2017. SECTION 2. That it is hereby officially found and determined that the meeting at which this Ordinance is passed is open to the public and as required by law, and public notice of the time, place and purpose of said meeting was given as required. hereof. SECTION 3. This Ordinance shall be effective on the date of the passage and approval PASSED AND APPROVED at a regular meeting of the City Council of Parker, Texas, on this the 1st day of _August_, 2017. i ' CITY OF PARKER, TEXAS c` - � co SCOTT LEVINE, MAYOR PRO TEM Ordinance No. 751 1 (Oncor Electric Delivery Company LLC Rate Change Denial) ATTEST: BY: PATTI SCOTT GREY, CIV CLERK APPROVED AS TO FORM AND CONTENT: BY: �::- BRANDON S. SHELBY, Y ATTORNEY Ordinance No. 751 2 (Oncor Electric Delivery Company LLC Rate Change Denial) "OW City of Rowlett 4ot)Main Street Rowlett, ett, TX 75088 I t X A Official Copy www.rowlett.com Resolution: RES-085-17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROWLETT, TEXAS, FINDING THAT ONCOR ELECTRIC DELIVERY COMPANY LLC'S ("ONCOR" OR "COMPANY") APPLICATION TO CHANGE RATES WITHIN THE CITY SHOULD BE DENIED; FINDING THAT THE CITY'S REASONABLE RATE CASE EXPENSES SHALL BE REIMBURSED BY THE COMPANY; 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; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Rowlett, Texas ("City") is an electric utility customer of Oncor Electric Delivery Company LLC ("Oncor„ or 'Company"), and a regulatory authority with an interest in the rates and charges of Oncor; and WHEREAS, the City is a member of the Steering Committee of Cities Served by Oncor ("Steering Committee"), a coalition of similarly situated cities served by Oncor that have joined together to efficiently and cost effectively review and respond to electric issues affecting rates charged in Oncor's service area; and WHEREAS, on or about March 17, 2017, Oncor filed with the City an application to increase system -wide transmission and distribution rates by $317 million or approximately 7.5% over present revenues. The Company asks the City to approve an 11.8% increase in residential rates and a 0.5% increase in street lighting rates; and WHEREAS, the Steering Committee is coordinating its review of Oncor's application and working with the designated attorneys and consultants to resolve issues in the Company's fling; and WHEREAS, through review of the application, the Steering Committee's consultants determined that Oncor's proposed rates are excessive; and WHEREAS, the Steering Committee's members and attorneys recommend that members deny the Application; and NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ROWLETT, TEXAS: Section 1: That the rates proposed by Oncor to be recovered through its electric rates charged to customers located within the City limits, are hereby found to be unreasonable and shall be denied. Section 2: That the Company shall continue to charge its existing rates to customers within the City. Section 3: That the City's reasonable rate case expenses shall be reimbursed in full by Oncor within 30 days of the adoption of this Resolution. Section 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. Section 5: That 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. Section 6: That this Resolution shall take effect from and after its passage. At a meeting of the City Council on August 1, 2017 this Resolution be adopted. The motion carried by the following vote: Ayes: 7 Mayor Gottel, Mayor Pro Tern Dana-Bashian, Deputy Mayor Pro Tern Bobbitt, Councilmember van Bloemendaal, Councilmember Hargrave, Councilmember Bell and Councilmember Brown. The remainder of this page was intentionally left blank. Approved by Date August 1. 2017 Mayor GApproved to form by Date August 1, 2017 A orney Date August 1.2017 Attachment 1 STEERING COMNIITTEE CITIES SERVED BY ONCOR (159) (highlighted ceded OJ) Addison Farmers Branch North Richland Hills Allen o " Fate 1�otfblalce Leaf Alvarado Flower Mound Oak Andrews Forest Hill Oak Point Anna Fort Worth Odessa Archer City Frisco O'Donnell Argyle Ovilla Arlington Gainesville Palestine Azle Garland Pantego Bedford Glenn Heights Paris Beilmead Grand Prairie Plano Belton "" - . 1�`"`r Pottsboro Benbrook Grapevine Prosier Beverly Hills Haltom City �i5-" Big Spring Harker Heights Red Oak Imo Breckenridge Haslet Bridgeport Heath Richardson Brownwood Henrietta Ricilsad Buffalo if Richland Hills Burkburnett Highland Park River Oaks Burleson l<Ioney Grove Roanoke Callao Mills Howe Robinson Cartie`rot bait Hurst Fiatto Rockwall &i s4 Carrollton Iowa Park Rowlett Cedar Hill Irving Sachse Celina 3611y Saginaw Centerville Josephine Sansom Park Cleburne Justin Seagoville Coahoma Kaufinan Sherman CoIleyville Keene Snyder Collinsville Keller Southlake Colorado City Kennedale Spr'ngto M Comanche K6,e� Killeen Stephenville Sulphur Springs Commerce CoppelI Krum Sunnyvale Copperas Cove lake Worth ",m„"" � Sweetwater Corinih L.&-1- lda Tem le .. p Cross Roads Lamesa Tcmell Crowley Lancaster The Colony Dallas Lewisville Trophy Club Dalworthington Gardens Lindale Little Elm Tyler University Park DeLeon De Soto Little River Academy Venus Denison Malakoff Waco Duncanville Mansfield Watauga Waxahachie Earl, Eastland McKinney Mesquite Westover Hills Edgecliff.Village'' Midland White Settlement Ennis Midlothian Wichita Falls Euless 1Vfur6hison Willow Park Eveiinan Murphy Woodway Fairview Now Chapel Hill Wylie 1669116n3a"S Mayor -- Todd Gottel Mayor Pro Tem — Tammy Dana- Bashian Deputy Mayor Pro Tem Debby Bobbitt City Council Robbert van Bloemendaal Bruce Ilargrave Pamela Bell Martha Brown Ciry Manarer-- Brian Funderburk VYYW� T E X A S CERTIFIED COPY OF RECORD STATE OF TEXAS § COUNTIES OF DALLAS AND ROCKWALL § CITY OF ROWLETT § City of Rowlett 4000 Main Street Rowlett, TX 75088 Phone •- 972.412.6100 Fax — 972.412.6118 www.rowlett.com A unique community where jamilles enjoy life and feel at home I, the undersigned, City Secretary of the City of Rowlett, Texas, a governmental subdivision of the State of Texas, in the performance of the functions of my office, hereby certify that the following copy of Resolution No. RES-085-17 was approved by the Rowlett City Council on August 1, 2017 and is a true and correct copy of same, and that I am the lawful possessor and have legal custody of said record. WITNESS my hand and seal of said City of Rowlett, Texas, at my office in said City, Counties and State aforesaid, this the 2" ° day of August, 2017. Stacey Chadwick, Deputy City Secretary City of Rowlett, Texas G i T Rowlet` SA FC s:�f 71w .Le w. uu.M► C60 T XSAS �:. R� G(ifryRlUikT + It'dtk'I�{llll C.i[LiE' !'4ftin,xn �Irmtrr 811�- sine