Loading...
21-967ORDINANCE NO. 21-967 AN ORDINANCE OF THE CITY OF DENTON, A TEXAS HOME-RULE MUNIC'IPAL CORPORATION, DENYnqG THE DISTRIBUTION COST RECOVERY FACTOR RATE REQUEST OF ONCOR ELECTRIC DELIVERY COMPANY LLC MADE ON OR ABOUT APRIL 8, 2021; AUTHORIZHqG PARTICEPATION IN A COALITION OF Sn4iLARLY SITUATED CITIES; AUTHORIZING PARTicmATioN IN RELATED RATE PROCEEDINGS; REQUIRING THE REHv£BURSEMENT OF MUNICIPAL RATE CASE EXPENSES; AUTHORIZING THE RETENTION OF SPECIAL COUNSEL; FNDING THAT THE MEETING COMPLIES WITH THE TEXAS OPEN MEETINGS ACT; MAKING OTHER FRVDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on about April 8, 2021, Oncor Electric Delivery Company LLC (“Oncor”) filed an application for approval to amend its Distribution Cost Recovery Factor (“DCRF“) with the City of Denton (the “City”) that will increase Oncor’s rates effective September 1, 202 1; 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 specifically over its requested amendment to its DCRF under Chapter 36, §36.210; and WHEREAS, Oncor seeks to include in rates a profit related to its incremental investment in distribution assets it has made from January 1, 2020 through December 3 1, 2020; and WHEREAS, the inclusion ofOncor’s profit on its investment in distribution assets in rates has the effect of increasing Oncor’s revenue requirement by approximately $97.83 million; and WHEREAS, the jurisdictional deadline for the City to act in this rate matter is 60 days from the application date, or June 7, 2021; and WHEREAS, the City will require the assistance of specialized legal counsel and rate experts to review the merits ofOncor’s application to increase rates; and WHEREAS, in order to maximize the efficient use of resources and expertise in reviewing, analyzing and investigating Oncor’s rate request, 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 ofOncor Cities (“AOC”) and hereby continues its participation in AOC; and WHEREAS, Oncor simultaneously filed an application for approval of an amendment to its DCRF with the Public Utility Commission of Texas, and therefore the decision of the Public Utility Commission of Texas will have an impact on the rates paid by the City and its citizens who are customers in Oncor’s service territory, and in order for the City’s participation to be 1 meaningful, it is important that the City promptly intervene in such proceeding at the Public Utility Commission of Texas; and WHEREAS, Oncor failed to show that its proposed rate change is reasonable and therefore the City has concluded that Oncor’s proposed rate change is unreasonable; NOW THEREFORE, THE COUNCL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this Ordinance are in all things approved and incorporated herein by reference. SECTION 2. The rate change Oncor requested on or about April 8, 2021 is hereby DENIED. SECTION 3. Intervention in proceedings related to Onoor’s application for approval of its DCRF before the Public Utility Commission of Texas and related proceedings in courts of law as part of the coalition of cities known as the Alliance of Oncor Cities (“ AOC”), including any appeal of the City’s decision on rates, is hereby authorized. SECTION 4. Oncor is hereby ordered to reimburse the City’s rate case expenses as provided in the Public Utility Regulatory Act and 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, including any appeal of the City’s decision on rates; and receipt of such reimbursement directly or indirectly by the City, by a representative of the AOC on behalf of the City or by legal counsel and experts in payment of services rendered in connection with such rate review or related proceedings is hereby authorized. SECTION 5. Subject to the right to terminate employment at any time, the retention of the law firm of Herrera Law & Associates, 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, including any appeal of the City’s decision on rates, and to retain such experts as may be reasonably necessary for review of Oncor’s rate application is hereby authorized. SECTION 6. The City Manager, or their designee, through the City’s participation in AOC, shall review the invoices of the lawyers and rate experts for reasonableness before submitting the invoices to Oncor for reimbursement. SECTION 7. The City Manager, or their designee, is hereby directed to send a copy of this Ordinance to Oncor Electric Delivery Company, LLC, care of Mr. J. Michael Sherburne, Oncor Electric Delivery Company LLC, 1616 Woodall Rodgers Freeway, Dallas, Texas 75202; and to Mr. Alfred R. Herrera, Herrera Law & Associates, PLLC, 4524 Burnet Road, Austin, Texas 78756 2 SEC llC)IN 3. It rs hereby louna ana cleterrnrnea that the rneetrng at WhICh thIS Or<]lnance is passed and approved is in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. SECTION 9. This Ordinance supersedes any prior inconsistent or conflicting resolution r ordinance. SECTION 10. This Ordinance shall become effective immediately upon its passage and 0 approval. s e c o n d IEy 1r%t:I? ?(;f: P P&v :: F) r d i n a n c e vr a s Ir= aRe?) r:? :ileein::f=fapprove / I the following vote U - O ]: Aye Nay Abstain Absent Gerard Hudspeth, Mayor: / Vicki Byrd, District 1 : / Brian Beck, District 2: J_ Jesse Davis, District 3 : a Alison Maguire, District 4: a Deb Armintor, At Large Place 5: / Paul Meltzer, At Large Place 6: / PASSED AND APPROVED this the _day of N\o-\ .- Z;( l GERARD HUDSPETH, MAYOR 202 1 ATTEST: ROSA RIOS, CITY SECRETARY BY: . /G/% bJ#?x2wP APPROVED AS TO LEGAL FORM AARON LEAL, CITY ATTORNEY BY:4MhMt 3