File #: 22-4954    Version: 1 Name: Resolution of the City of Mansfield, Texas Finding That Oncor Electric Delivery Company Llc’s (“Oncor” Or “Company”) Application to Change Rates Within the City Should be Denied.
Type: Resolution Status: Passed
File created: 9/28/2022 In control: City Council
On agenda: 10/10/2022 Final action: 10/10/2022
Title: Resolution - A Resolution of the City of Mansfield, Texas Finding That Oncor Electric Delivery Company Llc’s (“Oncor” Or “Company”) Application to Change Rates Within the City Should be Denied
Sponsors: Jeff Price
Attachments: 1. Resolution

Title

Resolution - A Resolution of the City of Mansfield, Texas Finding That Oncor Electric Delivery Company Llc’s (“Oncor” Or “Company”) Application to Change Rates Within the City Should be Denied

Requested Action

Staff requests that the Council consider adopting this resolution, thus denying the Company's application to increase rates.

Recommendation

Staff recommends that the Council adopt the resolution.

 

Description/History

On May 13, 2022, Oncor Electric Delivery Company LLC (“Oncor” or “Company”) filed an application with cities retaining original jurisdiction seeking to increase system-wide transmission and distribution rates by about $251 million or approximately 4.5% over present revenues.  The Company asks the City to approve an 11.2% increase in residential rates and a 1.6% increase in street lighting rates. The impact of this requested increase on an average residential customer using 1,300 kWh/month would be about $6.02 per month.

In a prior City action, Oncor’s rate request was suspended from taking effect for 90 days, the fullest extent permissible under the law.  This time period has permitted the City, through its participation with the Steering Committee of Cities Served by Oncor (“Steering Committee”), to determine that the proposed rate increase is unreasonable.  Consistent with the recommendations of the experts engaged by the Steering Committee, Oncor’s request for a rate increase should be denied.

Accordingly, the purpose of the Resolution is to deny the rate change application proposed by Oncor. 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. 53601) currently pending at the Commission.

 

Justification

The City of Mansfield is a member of a 169-city coalition known as the Steering Committee of Cities Served by Oncor ("Steering Committee").  The Steering Committee has been in existence since the late 1980s.  It took on a formal structure in the early 1990s when cities served by the former TXU gave up their statutory right to rate case expense reimbursement in exchange for higher franchise fee payments.  Empowered by city resolutions and funded by per capita assessments, the Steering Committee has been the primary public interest advocate before the Public Utility Commission, the Courts, and the Legislature on electric utility regulation matters for the last 30 years.

 

All cities with original jurisdiction will need to adopt the Resolution prior to October 30, 2022.

 

Funding Source

N/A

 

Prepared By

Jeff Price, Director of Utilities

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