Item 4D - Memo
M E M O R A N D U M
July 25, 2025
To: Alison Ortowski, City Manager
From: Sharen Jackson, CFO
Subject: Item 4D, Approve Resolution 25-027, suspending the effective
date of Oncor’s requested rate change
Action
Requested: Approve Resolution 25-027, suspending the effective date of
Oncor’s requested rate change
Background
Information: Oncor Electric Delivery Company filed an application on June 26,
2025, seeking to increase system-wide transmission and
distribution rates by about $834 million, or approximately 13%.
The Company is requesting a 12.3% increase in residential rates
and a 51.0% increase in street lighting rates. If approved, an
average residential customer would see a monthly bill increase of
about $7.90.
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. Oncor has proposed an
effective date of July 31, 2025. The law permits the City to
suspend the rate change for 90 days after the date the rate change
would otherwise be effective. However, Southlake and several
other cities that do not hold July City Council meetings were
granted an extension to take action to suspend the rate
request. If the City fails to take some action regarding the
filing, the rate request is deemed administratively approved.
The purpose of the resolution is to extend the effective date of
Oncor's proposed rate increase to give the city time to evaluate
the rate-filing package. The resolution suspends July 31, 2025,
effective date for the maximum period permitted by law (90 days)
to allow the City, working in conjunction with the Steering
Committee of Cities Served by Oncor, to evaluate the filing,
determine whether filing complies with law, and if lawful, to
determine what further strategy to pursue, including settlement
and ultimately to approve reasonable rates.
The City of Southlake is a member of a 170-city coalition known
as the Steering Committee of Cities Served by Oncor ("Steering
Committee"). The Steering Committee has been in existence
since the late 1980s. It took on a formal structure in the early
1990s when cities served by the former TXU gave up their
statutory right to rate case expense reimbursement in exchange
for higher franchise fee payments. Empowered by city resolutions
and funded by per capita assessments, the Steering Committee
has been the primary public interest advocate before the Public
Utility Commission, the Courts, and the Legislature on electric
utility regulation matters for the last 30 years.
Although Oncor has increased rates many times over the past few
years, this is the company's first comprehensive base rate case
since May 2022.
Financial
Considerations: Oncor is requesting a significant increase in the transmission and
distribution rates its electrical customers. Approving this resolution
allows the city and the Steering Committee and its consultants to
review the request in detail, identify cost-saving opportunities, and
engage in negotiations. It is too early to determine any potential
savings. The Steering Committee has a consistent track record of
identifying cost savings opportunities. Ultimately, this process will
ensure that consumers, including Southlake citizens, are
represented in this process.
Strategic Link: F1: Safeguarding the public trust through a commitment to
thoughtful planning and responsible, conservative financial
management.
B2: Collaborating with select partners to implement service
solutions. Citizen Input/ Board Review: None required
Legal Review: Lloyd, Gosselink, Rochelle & Townsend, P.C. prepared the
resolution.
Alternatives: Deny the resolution and accept Oncor’s rate request as
submitted. Staff
Recommendation: Approve Resolution 25-027 Supporting
Documents: Resolution 25-027
Staff Contacts: Sharen Jackson
1
RESOLUTION NO. 25-027
RESOLUTION OF THE CITY OF SOUTHLAKE
SUSPENDING THE JULY 31, 2025 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 June 26, 2025, 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 July 31, 2025; 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 170 similarly situated city members
and other city participants in conducting a review of the Company’s application and to hire and
direct legal counsel and consultants and to prepare a common response and to negotiate with the
Company prior to getting reasonable rates and direct any necessary litigation; and
WHEREAS, PURA § 36.108 grants local regulatory authorities the right to suspend the
effective date of proposed rate changes for ninety (90) days after the date the rate change would
otherwise be effective; and
WHEREAS, PURA § 33.023 provides that costs incurred by Cities in ratemaking
proceedings are to be reimbursed by the regulated utility.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS:
1. That the July 31, 2025 effective date of the rate request submitted by Oncor on or
about June 26, 2025, be suspended for the maximum period allowed by law to permit adequate
time to review the proposed changes and to establish reasonable rates.
2
2. As indicated in the City’s resolution approving membership in the Steering
Committee, the Executive Committee of Steering Committee is authorized to hire and direct legal
counsel and consultants, negotiate with the Company, make recommendations regarding
reasonable rates, and to intervene and direct any necessary administrative proceedings or court
litigation associated with an appeal of a rate ordinance and the rate case filed with the City or
Public Utility Commission.
3. That the City’s reasonable rate case expenses shall be reimbursed by Oncor.
4. That it is hereby officially found and determined that the meeting at which this
Resolution is passed is open to the public as required by law and the public notice of the time,
place, and purpose of said meeting was given as required.
5. A copy of this Resolution shall be sent to Oncor Electric Delivery Company LLC,
1616 Woodall Rodgers Freeway, Dallas, Texas 75202 and to Thomas Brocato, Counsel to the
Steering Committee, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin,
Texas 78767-1725.
PASSED AND APPROVED this the fifth day of August, 2025.
____________________________________
Shawn McCaskill
Mayor, City of Southlake
ATTEST:
_____________________________
Amy Shelley, TRMC
City Secretary
APPROVED AS TO FORM:
_____________________________
City Attorney