HomeMy WebLinkAboutR2017-031S:\Lega4tCiur pocume�its\Qrdinaiices\17tOn�or Resolution.docx
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WHEREAS, Oncor Electric Delivery Company LLC ("Oncar" or "Campany"}
iiled a Statement of Intent with the City an or abaut March 17, 2017 to increase its revenues
by approxirnately $317 million, which equates ta an overall increase of approximately
7.5% in revenue; and
WHEREAS, Oncor proposes to implement its proposed increase in rates on or
about April 21, 2017, and
WHEREAS, on or before April 21, 2017, the City took action to suspend Oncor's
proposed effective date of Apri121, 2017 for the statutorily allowed period of ninety (90)
days, to July 20, 2017; and
WHEREAS, Oncor agreed to extend the deadline for final City action frorn July
20, 20I7 to August 19, 2017; and
WHEREAS, Oncor failed to establish that its overall revenue request resulted in no
mare than an amaunt that will permit Oncor a reasonable apportunity ta earn a reasanable
return on the utility's invested capital used and useful in providing service to the public in
excess of the utility's reasonable and necessary operating expenses; and
WHEREAS, Oncor failed to establish that its proposed rates were just and
reasonable; and
WHEREAS, the City has previously: 1) suspended Oncor's proposed rate increase
by 90 days; 2} authorized intervention in proceedings related ta Oncor's proposed rate
increase as a member of the caalition of cities known as the Alliance of Oncor Cities
("AOC"); 3) directed Oncor to reimburse Oncor's rate case expenses; and 4) retained the
Iaw firm of Herrera & Boyle, PLLC with respect to rate proceedings involving Oncor
before the Public Utility Commission of Texas and courts af law and to retain consultants
to review Oncor's rate application subject to AOC's appraval. NOW THEREFORE
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SECTION l. The findings set out in the preamble are in all things approved and
incorporated herein as if fully set forth.
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SECTION 3. The City hereby DENIES Oncor's request to increase rates and in
support thereof finds that;
a) The Statement of Intent fails to provide sufficient informatian to justify the
requested increase in revenue or to justify the changes set forth in the attached
tariffs; and
b) The Statement of Intent fails to provide sufficient information to justify the
adoption of the rate base, expenses, investment, return on equity, and other rate
issues. `
SECTION 4. As a courtesy, a copy of this resalution 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 5. 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 6. This resolution shall become effective from and after its passage.
PASSED AND APPROVED this �"'`day of � �,t,p�' , 2017.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
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BY: ��'�w _ � �
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APPR '�� i;l.� th�l'C� LEGAL FORM:
AARON LEAL, INTERIM CITY ATTORNEY
BY:
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C�� f� � S WATTS, MAYOR