Item 4M - MemoCITY OF
SOUTHLAKE
MEMORANDUM
June 7, 2022
To: Shana Yelverton, City Manager
From: Daniel Cortez, Director of Economic Development & Tourism
Sharen Jackson, Chief Financial Officer
Item 4M
Subject: Resolution No. 22-017 — Approving the suspension of the June 17, 2022
Effective Date of Oncor Electric Delivery Company's Requested Rate Change
to permit the City time to study the request and to establish reasonable rates
Action
Requested: Approval of Resolution No. 22-017, approving the suspension of the June 17,
2022 Effective Date of Oncor Electric Delivery Company's Requested Rate
Change.
Background
Information: Cities have been advocating on behalf of their electricity consumers for many
years, especially at the Public Utility Commission of Texas. One of the most
important municipal coalitions currently active in electric utility cases is the
Steering Committee of Cities Served by Oncor ("OCSC"). The OCSC is an
organization of more than 156 cities in north and central Texas with residents
served by the Oncor transmission and distribution utility. These cities have
joined together to efficiently and cost-effectively review and respond to electric
issues affecting rates charged in Oncor's service area in matters before the
Public Utility Commission and the courts.
The City of Southlake, with those other 156 cities, is a member of the OCSC.
The OCSC undertakes activities on behalf of its city members and their citizens
such as participation in rate cases, rulemakings, advocacy and legislative
efforts that impact utility rates and costs.
Oncor Electric Delivery Company filed an application on or about May 13, 2022
with cities retaining original jurisdiction seeking to increase system -wide
transmission and distribution rates by about $251 million or approximately 4.5%
over present revenues. Oncor is asking the City to approve an 11.2% increase
in residential rates and a 1.6% increase in street lighting rates. If approved, a
residential customer using 1,300 kWh per month would see a bill increase of
about $6.02 per month.
This resolution suspends the June 17, 2022 effective date of the Company's
rate increase for the maximum period permitted by law to allow the City,
working in conjunction with the OCSC, to evaluate the filing, determine whether
the filing complies with the law, and if lawful, to determine what further strategy,
including settlement, to pursue.
The law provides that a rate request made by an electric utility cannot become
effective until at least 35 days following the filing of the application to change
rates. The law permits the City to suspend the rate change for 90 days after
the date the rate change would otherwise be effective. If the City fails to take
Strategic Link
Legal Review:
Alternatives:
Staff
Recommendation
Attachments:
Staff Contacts:
some action regarding the filing before the effective date, Oncor's rate request
is deemed administratively approved.
This item is specifically linked to the City's Strategy Map through B2:
Collaborate with select partners to implement service solutions
Lloyd, Gosselink, Rochelle & Townsend, P.C. has reviewed this resolution and
is recommending approval by the City of Southlake
Deny Resolution 22-017, the suspension of the June 17, 2022 Effective Date of
Oncor Electric Delivery Company's Requested Rate Change.
Approval of Resolution 22-017, approving the suspension of the June 17, 2022
Effective Date of Oncor Electric Delivery Company's Requested Rate Change
to permit the City time to study the request and to establish reasonable rates.
Resolution 22-017
Daniel Cortez (817) 748-8039
Sharen Jackson (817) 748-8042
RESOLUTION NO. 22-017
A RESOLUTION OF THE CITY OF SOUTHLAKE, TEXAS
SUSPENDING THE JUNE 17, 2022 EFFECTIVE DATE OF ONCOR
ELECTRIC DELIVERY COMPANY'S REQUESTED RATE CHANGE
TO PERMIT THE CITY TIME TO STUDY THE REQUEST AND TO
ESTABLISH REASONABLE RATES; APPROVING COOPERATION
WITH THE STEERING COMMITTEE OF CITIES SERVED BY ONCOR
TO HIRE LEGAL AND CONSULTING SERVICES AND TO
NEGOTIATE WITH THE COMPANY AND DIRECT ANY NECESSARY
LITIGATION AND APPEALS; FINDING THAT THE MEETING AT
WHICH THIS RESOLUTION IS PASSED IS OPEN TO THE PUBLIC
AS REQUIRED BY LAW; REQUIRING NOTICE OF THIS
RESOLUTION TO THE COMPANY AND LEGAL COUNSEL FOR THE
STEERING COMMITTEE.
WHEREAS, on or about May 13, 2022, Oncor Electric Delivery Company (Oncor),
pursuant to PURA §§ 33.001 and 36.001 filed with the City of Southlake a Statement of Intent
to increase electric transmission and distribution rates in all municipalities exercising original
jurisdiction within its service area effective June 17, 2022; and
WHEREAS the City of Southlake is a member of the Steering Committee of Cities
Served by Oncor ("Steering Committee") and will cooperate with the 169 similarly situated
city members and other city participants in conducting a review of the Company's application
and to hire and direct legal counsel and consultants and to prepare a common response and
to negotiate with the Company prior to getting reasonable rates and direct any necessary
litigation; and
WHEREAS PURA § 36.108 grants local regulatory authorities the right to suspend the
effective date of proposed rate changes for ninety (90) days after the date the rate change
would otherwise be effective; and
WHEREAS PURA § 33.023 provides that costs incurred by Cities in ratemaking
proceedings are to be reimbursed by the regulated utility.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS:
SECTION 1. That the June 17, 2022 effective date of the rate request submitted by Oncor
on or about May 13, 2022, be suspended for the maximum period allowed
by law to permit adequate time to review the proposed changes and to
establish reasonable rates.
SECTION 2. As indicated in the City's resolution approving membership in the Steering
Committee, the Executive Committee of Steering Committee is authorized to
hire and direct legal counsel and consultants, negotiate with the Company,
make recommendations regarding reasonable rates, and to intervene and
direct any necessary administrative proceedings or court litigation
associated with an appeal of a rate ordinance and the rate case filed with
the City or Public Utility Commission.
SECTION 3. That the City's reasonable rate case expenses shall be reimbursed by
Oncor.
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. A copy of this Resolution shall be sent to Oncor, Care of Howard V. 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, APPROVED AND ADOPTED THIS 7TH DAY OF JUNE, 2022.
ATTEST:
Amy Shelley, TRMC
City Secretary
John Huffman, Mayor
APPROVED AS TO FORM:
City Attorney