HomeMy WebLinkAboutR2017-010sAlegakour documents\resolutions\17\dkt46957-resolution-suspension-2-032017.docx
RESOLUTION NO. R2017-010
RESOLUTION BY THE CITY OF •
DATE FOR NINETY DAYS IN CONNECTION WITH THE RATE INCREASE FILING OF
ONCOR ELECTRIC DELIVERY COMPANY, LLC ON OR ABOUT MARCH 17, 2017;
REQUIRING REIMBURSEMENT MUNICIPAL ! CASE EXPENSES;
AUTHORIZING PARTICIPATION IN THE COALITION OF SIMILARLY SITUATED CITIES;
AUTHORIZING
INTERVENTION AND
PARTICIPATION
!, T!1 RELATED
RATE
DATE,PROCEEDINGS; AUTHORIZING THE RETENTION OF SPECIAL COUNSEL; FINDING
THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN
EFFECTIVE
WHEREAS, Oncor Electric Delivery Company LLC ("Oncor" or "Company") filed a
Statement of Intent with the City on or about March 17, 2017 to increase its revenues; and
WHEREAS, Oncor proposes to implement its proposed increase in rates on or about April
21, 2017, and
WHEREAS, Oncor's proposed increase in rates would result in an increase to its revenues
of approximately $317 million, which equates to an overall increase of approximately 7.5% in
revenue; and
WHEREAS, Oncor asserts that the need for its increase in rates is driven in part by its
investments of approximately $7.9 billion since June 30, 2010, the end of the test year in its most
recent rate cases and
WHEREAS, an evaluation of Oncor's cost to provide electric service presents a complex
series of regulatory issues; and
WHEREAS, for the Residential customer class as a whole, Oncor's proposed increase in
rates if approved would result in an increase of almost 12% to that class; and an increase of about
to small commercial- and
Oncor's• of • •us amount of • •including
*ncor's rate -filing package, exhibits, schedules, and work papers; and
WHEREAS, it is not possible for the City to complete its review of Oncor's filing by April
21, 2017; and
WHEREAS, the City will need an adequate amount of time to investigate and determine
whether Oncor has properly invoked the City's rate -setting jurisdiction, and if so, ultimately to
review and evaluate Oncor's rate application to enable the City to adopt a final decision as a local
regulatory •regard to Oncor's requestedrate increase;and
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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
WHEREAS, to the extent Oncor seeks review at the Public Utility Commission of Texas of
the City's final decision regarding Oncor's statement of intent to change rates, or because Oncor
has submitted a statement of intent to the Public Utility Commission of Texas to increase rates in
the environs of the City on the same date it submitted its request to the City, the decision of the
Public Utility Commission of Texas could have an impact on the rates paid by 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 in such proceeding at the Public Utility Commission of
Texas; NOW, THEREFORE,
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 Oncor's proposed effective date or as may be amended by
agreement or otherwise.
SECTION 3. The statutory suspension period may be further extended or its Statement of
Intent dismissed if Oncor does not provide adequate data from which the City may make a
reasonable determination of the Company's rate base, expenses, investment, and rate of return in
the City, or if Oncor does not provide timely, meaningful, and proper public notice of its request to
increase rates and revenue, or if its rate -filing package is otherwise materially deficient.
SECTION 4. The City 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 participation in the coalition of cities known as Alliance of Oncor Cities.
SECTION 5. The City hereby orders Oncor to reimburse 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.
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 City.
SECTION 7. The City shall review the invoices of the lawyers and rate experts for
reasonableness before submitting the invoices to Oncor for reimbursement.
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SECTION 8. A copy of this resolution shall be sent to Mr. Stephen N. Ragland, Vice
President -Regulatory, Oncor, 1616 Woodall Rodgers Expressway, Dallas, Texas, 75202; and to Mr.
Alfred R. Herrera, Herrera & Boyle, PLLC, 816 Congress Ave., Suite 1250, Austin, Texas 78701.
"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.
SECTION 10. This resolution shall become effective from and after its passage,
PASSED AND APPROVED this the 1.1._11._--q_ day of _A P4i'L — — --------- - 2017.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
AARON LEAL, INTERIM CITY ATTORNEY
BY:
CHRIS 3WA'1N-V,AYOR
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