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Item 4J Audio9 rITY Or SOUTHLAKE Honorable Mayor and members of the Southlake City Council, I am happy to present Item 4J for your consideration. Requested Action • Approve Ordinance 1007 —1st Reading — Between Steering Committee of Cities and Oncor Electric Delivery Company LLC This is the 1 st Reading of Ordinance #1007 related to the negotiated agreement between Oncor Electric Delivery Company , LLC and the Steering Committee of Cities Served by Oncor regarding the company's application to increase electric rates. We are requesting your action on this item. E Background Information • Member of Steering Committee of Cities Served by Oncor ( "Steering Committee ") • Oncor filed application to increase electric rates —January 7, 2011 — $353 million rate increase The City of Southlake along with 160 other cities is a member of the Steering Committee of Cities Served by Oncor. On January 7 of this year, Oncor filed with the City an application to increase electric rates summing to $353 million dollars. 3 Background Information • Settlement — 60% reduction in requested amount — Average monthly residential bill increase $2.35 — Eliminate potential rate case legal fees — Executive Committee and counsel recommend approval of settlement The City worked with the Steering Committee to analyze the evidence offered by Oncor to support their request. The committee negotiated a 60% reduction in the requested increase leaving the recommended increase at $13.6 million. This equates to approximately $2.35 per month for the average residential consumer. The compromise mitigates the costly legal expenses associated with filing a contested case with the Public Utility Commission of Texas and eliminates a time consuming proceeding that would likely not result in a more favorable outcome to the consumer. The Executive Committee and counsel for the Steering Committee recommend that the member cities take action to approve the new rate tariffs. 0 Financial Considerations • None There are no financial considerations for the City at this time. 5 Additional Information • Approve New Rates • Tariff -phase 1 (Attachment A) • Tariff -phase 2 (Attachment B) • Settlement Agreement (Attachment C) • Staff Recommends Approval of Ordinance 1007 Attached to the memorandum, you will find Attachment A & B which are the negotiated rate tarrifs, and Attachment C which is the Settlement Agreement. Ordinance # 1007 is also attached. Staff's recommendation to Council is to approve the ordinance. 0 �CITY OF SOUTHLAKE Thank you for your time. Questions regarding this item may be directed to Sharen Jackson, Director of Finance at (817) 748 -8042.