HomeMy WebLinkAboutRES 072225-5.H - Oncor Electric Rates Temporary SuspensionRESOLUTION NO. 0 14,9 W- 5 • H
RESOLUTION BY THE CITY OF GEORGETOWN SUSPENDING
ONCOR ELECTRIC DELIVERY COMPANY LLC'S PROPOSED
EFFECTIVE DATE OF JULY 31, 2025, FOR NINETY DAYS IN
CONNECTION WITH ONCOR'S STATEMENT OF INTENT TO
INCREASE RATES FILED ON OR ABOUT JUNE 26, 2025;
REQUIRING THE REIMBURSEMENT OF MUNICIPAL RATE
CASE EXPENSES; AUTHORIZING PARTICIPATION IN THE
COALITION OF SIMILARLY SITUATED CITIES;
AUTHORIZING INTERVENTION AND PARTICIPATION IN
RELATED RATE PROCEEDINGS; AUTHORIZING THE
RETENTION OF SPECIAL COUNSEL; REPEALING
CONFLICTING RESOLUTIONS; INCLUDING A SEVERABILITY
CLAUSE; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, Oncor Electric Delivery Company LLC ("Oncor" or "Company")
filed a Statement of Intent with the City on or about June 26, 2025, to increase its revenues;
and
WHEREAS, Oncor proposes to implement its proposed increase in rates on or
about July 31, 2025; and
WHEREAS, Oncor's proposed increase in rates would result in an increase of
approximately $833.6 million in its annual revenue, which equates to an overall increase
in revenue of approximately 13.0%; and
WHEREAS, Oncor asserts that the need for its increase in rates is driven in part
by its investments of approximately $11.6 billion since December 31, 2021, the end of the
test year in its most recent rate case; 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, Oncor's proposed increase in rates
if approved would result in an increase of approximately 12.3% to that class; and a decrease
of about 1 % to small commercial ratepayers; and
WHEREAS, the Company seeks a Return on Equity (ROE) of 10.55%, and an
overall Rate of Return (ROR) of 7.47%; and
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WHEREAS, Oncor's rate request consists of a voluminous amount of information
including Oncor's rate -filing package, exhibits, schedules, and workpapers; and
WHEREAS, it is not possible for the City to complete its review of Oncor's filing
by July 31, 2025; 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 authority with regard to Oncor's requested rate increase;
and
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,
and 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, 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 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GEORGETOWN, TEXAS:
Section 1. The meeting at which this resolution was approved was conducted in
compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551.
Section 2. The facts and recitations contained in the preamble of this resolution
are hereby found and declared to be true and correct and are incorporated by reference
herein and expressly made a part hereof, as if copied verbatim.
Section 3. 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.
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Section 4. 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 5. The City authorizes intervention and full participation, including
settlement negotiations, 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 the Alliance of Oncor Cities.
Section 6. The City hereby orders Oncor to reimburse the Alliance of Oncor
Cities' 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 such invoices for
reasonable costs associated with activities related to this rate review or related to
proceedings involving Oncor before the City, the Public Utility Commission of Texas, or
any court of law.
Section 7. Subject to the right to terminate employment at any time, the City
retains and authorizes 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, and to retain such experts as may be reasonably
necessary for review of Oncor's rate application subject to approval by the City.
Section 8. The City, through its participation in the Alliance of Oncor Cities, shall
review the invoices of the lawyers and rate experts for reasonableness before submitting
the invoices to Oncor for reimbursement.
Section 9. A copy of this resolution shall be sent to Mr. Matt Henry, Vice
President, General Counsel, Oncor, 1616 Woodall Rodgers Expressway, Dallas, Texas,
75202; and to Mr. Alfred R. Herrera, Herrera Law & Associates, PLLC, P.O. Box 302799,
Austin, Texas 78703.
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Section 10. All resolutions that conflict with the provisions of this resolution are
hereby repealed, and all other resolutions of the City not in conflict with the provisions of
this resolution shall remain in full force and effect.
Section 11. If any provision of this resolution, or application thereof, to any person
or circumstance, shall be held invalid, such invalidity shall not affect the other provisions,
or application thereof, of this resolution, which can be given effect without the invalid
provision or application, and to this end the provisions of this resolution are hereby
declared to be severable.
Section 12. The Mayor is hereby authorized to sign this resolution and the City
Secretary to attest. This resolution shall become effective and be in full force and effect
immediately in accordance with the provisions of the City Charter of the City of
Georgetown.
RESOLVED THIS 22ND DAY OF JULY, 2025.
ATTEST:
Robyn D smore, City Secretary
APPROVED AS TO FORM:
Skye Nfasson, City Attorney
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THF/CLTY OF GEORGETOWN:
Jo�h/Schroeder, Mayor
DArcol ascvice,