City Council Regular Session Agenda

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  Agenda Item 3.       
Meeting Date: 08/01/2017  
Item Title:    Oncor Rate Case Denial
Submitted By: Matt Watson

Summary of Request/Problem
At the July 17, 2017 Work Session, Council considered approval of a resolution denying the rate application and consolidation proposed by Oncor Electric Delivery Company LLC ("Oncor").

On March 17, 2017, Oncor filed an application to change rates with cities retaining original jurisdiction.  In the filing, the Company seeks to increase system-wide transmission and distribution rates by $317 million or approximately 7.5% over present revenues. The Company asks the City to approve an 11.8% increase in residential rates and a 0.5% increase in street lighting rates. If approved, a residential customer using 1000 kWh per month would see a bill increase of about $6.68 per month.

The City, along with 158 other cities served by Oncor, participates in a Steering Committee who have engaged the services of three consultants to review Oncor's rate application. The consultants identified numerous unreasonable expenses and propose significant reductions to Oncor's request.  Accordingly, the Steering Committee’s attorneys recommend that all cities adopt the Resolution denying the rate change.  Once the Resolution is adopted, Oncor will have 30 days to appeal the decision to the Public Utility Commission of Texas where the appeal will be consolidated with Oncor’s filing (i.e. PUC Docket No. 46957) currently pending at the Commission.
Recommendation/Action Requested and Justification
Council is requested to consider approving the resolution denying the rate application and consolidation proposed by Oncor.


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