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.
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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.
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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.
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Financial Considerations
• None
There are no financial considerations for the City at this time.
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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.
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�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.