HomeMy WebLinkAboutR2011-001sAlegahour documents\resolutions1111oncor-suspend proposed effective date.doc
RESOLUTION NO. 82011-001
A RESOLUTION BY THE CITY OF DENTON, TEXAS ("CITY") SUSPENDING THE
EFFECTIVE DATE FOR NINETY DAYS IN CONNECTION WITH THE RATE INCREASE
FILING OF ONCOR ELECTRIC DELIVERY COMPANY LLC ON JANUARY 7, 2011;
FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT;
MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE
WHEREAS, Oncor Electric Delivery Company LLC ("Oncor" or "Company") filed a
Statement of Intent with the City on or about January 7, 2011 to increase its system-wide, annual
revenue requirement, by approximately $353 million, its system-wide residential base rates by
approximately 15%, and Lighting rates by approximately 26% increase, and seeks a vegetation-
management surcharge to recover revenues in the amount of approximately $34.6 million above
actual expense; and
WHEREAS, the City is a regulatory authority under the Public Utility Regulatory Act
("PURA") and under Chapter 33, §33.001 et seq. of PURA has exclusive original jurisdiction
over Oncor's rates, operations, and services within the municipality; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing and investigating Oncor' rate request and its changes in tariffs it is prudent
to coordinate the City's efforts with a coalition of similarly situated municipalities; and
WHEREAS, the City, in matters regarding applications by Oncor to change rates, has in
the past joined with other local regulatory authorities to form the Alliance of Oncor Cities
("AOC"), formerly known as the "Alliance of TXU/Oncor Cities" ("ATOC"), and hereby
continues its participation in AOC; and
WHEREAS, Oncor's rate request consists of a voluminous amount information including
Oncor's rate-filing package, pre-filed direct testimony, exhibits, schedules, and workpapers; and
WHEREAS, Oncor proposed February 14, 2011 as the effective date for its requested
increase in rates; and
WHEREAS, it is not possible for the City to complete its review of Oncor' filing by
February 14, 2011; and
WHEREAS, the City will need an adequate amount of time to review and evaluate
Oncor's rate application to enable the City to adopt a final decision as a local regulatory
authority with regard to Oncor's requested rate increase.
WHEREAS, the City will require the assistance of specialized legal counsel and rate
experts to review the merits of Oncor's application to increase rates; and
sAlegal\our documents\resolutions\l l\oncor-suspend proposed effective date.doc
WHEREAS, the decision of the Public Utility Commission of Texas will have a direct impact on
the City and its citizens who are customers of Oncor and in order for the City's participation to
be meaningful it is important that the City promptly intervene at the Docket No. 38929 pending
at the Public Utility Commission of Texas; NOW THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION 1. The findings set out in the preamble are in all things approved and
incorporated herein as if fully set forth.
SECTION 2. Oncor's proposed effective date for its proposed increase in rates is hereby
SUSPENDED for ninety days beyond February 14, 2011.
SECTION 3. The statutory suspension period may be further extended if Oncor does not
provide timely and meaningful, and proper public notice of its request to increase rates, or if its
rate-filing package is materially deficient.
SECTION 4. The City shall participate in a coalition of cities known as the Alliance of
Oncor Cities and authorizes intervention in proceedings related to Oncor's Statement of Intent
before the Public Utility Commission of Texas and related proceedings in courts of law; and
SECTION 5. The City hereby orders Oncor to pay the City's rate case expenses as
provided in the Public Utility Regulatory Act and that Oncor shall do so on a monthly basis and
within 30 days after submission of the City's invoices for the City's reasonable costs associated
with the City's activities related to this rate review or to related proceedings involving Oncor
before the City, the Public Utility Commission of Texas, or any court of law.
SECTION 6. Subject to the right to terminate employment at any time, the City retains
and authorizes the law firm of Herrera & Boyle, PLLC to act as Special Counsel with regard to
rate proceedings involving Oncor before the City, the Public Utility Commission of Texas, or
any court of law and to retain such experts as may be reasonably necessary for review of Oncor's
rate application subject to approval by the steering committee of the AOC.
SECTION 7. The City, in coordination with the Steering Committee, shall review the
invoices of the lawyers and rate experts for reasonableness before submitting the invoices to
Oncor for reimbursement.
SECTION 8. A copy of this resolution shall be sent to Mr. Alfred R. Herrera, Herrera &
Boyle, PLLC, 816 Congress Ave., Suite 1250, Austin, Texas 78701, and to the local Oncor
representative.
SECTION 9. The meeting at which this resolution was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code,
Chapter 551.
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s:llegallour documentsVesolutions1111oncor-suspend proposed effective date.doc
SECTION 10. This Resolution shall become effective immediately upon its passage and
approval. L
SL
PASSED AND APPROVED this the day of Lhha&A-~ '2011.
~A& ot~"
MARK A. BURROUGH AYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:(Az )14 ar1 A" ~ , -"APPROVED AS PrO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:
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