Item 4B - MemoQCITY OF
ISOUTHLAKE
MEMORANDUM
October 9th, 2025
To: Alison Ortowksi, City Manager
From: Sharen Jackson, CFO
Subject: Resolution No. 25-043, denying Oncor denying Oncor Electric Delivery
Company's application to increase system -wide transmission and distribution
rates.
Action
Requested: Approve Resolution No. 25-043, denying Oncor Electric Delivery Company's
application to increase system -wide transmission and distribution rates.
Background
Information: As part of the advocacy that we conduct for our citizens and local businesses,
the City of Southlake is a member of the Steering Committee of Cities served by
Oncor (OCSC). Comprised of over 170 cities in north and central Texas that are
served by Oncor, the OCSC undertakes activities on behalf of its city members
and their citizens including participation in rate cases, rulemakings, advocacy,
and legislative efforts that impact utility rates and costs.
On June 26, 2025, Oncor Electric Delivery Company LLC filed an application to
increase system -wide transmission and distribution rates by about $834 million
or approximately 13% over present revenues. Oncor is asking the City to
approve a 12.3% increase in residential rates and a 51.0% increase in street
lighting rates. If approved, the impact of this requested increase on an average
residential customer would be about $7.90 per month.
To allow additional time to review the merits of Oncor's request, Resolution 25-
027 was passed during the August 5th, 2025 City Council meeting, which
suspended Oncor's rate request for 90 days. This additional time allowed the
OCSC and its experts to conduct a thorough review of the request and determine
that the proposed rate increase is unreasonable. Consistent with the
recommendations of the OCSC, staff recommends that the request be denied.
The OCSC has recommend that all cities adopt this resolution denying Oncor's
application for approval to increase system -wide transmission and distribution
rates. Once the resolution is adopted, Oncor will have 30 days to appeal the
decision to the Public Utility Commission of Texas. All cities with original
jurisdiction, such as Southlake, will need to adopt this resolution prior to October
29th, 2025.
Financial
Considerations: None
Strategic Link: This item is specifically linked to the City's Strategy Map through 132: Collaborate
with select partners to implement service solutions
Legal Review: Lloyd Gosselink Rochelle & Townsend, P.C. has reviewed this resolution and
recommends approval.
Alternatives: Deny Resolution No. 25-043, denying Oncor Electric Delivery Company's
application to increase system -wide transmission and distribution rates within the
City of Southlake.
Staff
Recommendation: Approve Resolution No. 25-043, denying Oncor Electric Delivery Company's
application to increase system -wide transmission and distribution rates within the
City of Southlake.
Attachments: Resolution 25-043
Staff Contacts: Sharen Jackson
RESOLUTION NO.25-043
A RESOLUTION OF THE CITY OF SOUTHLAKE, TEXAS
FINDING THAT ONCOR ELECTRIC DELIVERY
COMPANY LLC'S 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 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 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 June 26, 2025, Oncor filed with the City an application to increase
system -wide transmission and distribution rates by about $834 million or approximately 13% over
present revenues. The Company asks the City to approve an 12.3% increase in residential rates
and a 51.0% 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 RESOLVED 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.
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.
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 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., 816 Congress
Ave., Suite 1900, Austin, Texas 78701.
PASSED AND APPROVED this 21st day of October, 2025.
ATTEST:
Amy Shelley, TRMC
City Secretary
APPROVED AS TO FORM:
City Attorney
Shawn McCaskill, Mayor
2