HomeMy WebLinkAboutRES 102825-5.D - Oncor Electric Rates Increase DenialRESOLUTION NO. 10z.825 - 5. Z)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GEORGETOWN, TEXAS, AUTHORIZING DENIAL OF ONCOR
ELECTRIC DELIVERY COMPANY LLC'S APPLICATION TO
INCREASE RATES RELATED TO ONCOR'S STATEMENT OF
INTENT TO INCREASE RATES FILED ON OR ABOUT JUNE 26,
2025; REQUIRING THE REIMBURSEMENT OF MUNICIPAL RATE
CASE EXPENSES; FINDING THAT THE MEETING COMPLIES
WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS
AND PROVISIONS RELATED TO THE SUBJECT; REPEALING
CONFLICTING RESOLUTIONS; INCLUDING A SEVERABILITY
CLAUSE; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council desires to establish that the Council has previously: (1)
suspended Oncor's proposed rate increase by 90 days; (2) authorized intervention in proceedings
related to Oncor's proposed rate increase as a member of the coalition of cities known as the
Alliance of Oncor Cities; (3) directed Oncor to reimburse AOC's rate case expenses; and (4)
retained the law firm of Herrera Law & Associates, PLLC with respect to rate proceedings
involving Oncor before the City, the Public Utility Commission of Texas, and courts of law and
to retain consultants to review Oncor's rate application subject to AOC's approval; and
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'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, 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
WHEREAS, in order to maximize the efficient use of resources and expertise in reviewing,
analyzing and investigating Oncor's rate request and its changes in tariffs the City coordinated its
efforts with a coalition of similarly situated municipalities known as the Alliance of Oncor Cities
("AOC") and other cities; and
WHEREAS, Oncor failed to establish that its overall revenue request resulted in no more
than an amount that will permit Oncor a reasonable opportunity to earn a reasonable 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
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WHEREAS, Oncor failed to establish that its proposed return on equity and its proposed
overall rate of return is just and reasonable; and
WHEREAS, the City Council finds it to be in the best interest of the public to establish
the denial, as set out herein.
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. The City hereby DENIES Oncor's request to increase rates and in support of
DENIAL finds that Oncor failed to show that its proposed rates are just and reasonable in the
following ways:
Oncor failed in its burden of proof to establish that its requested increase in revenue or
the changes set forth in its tariffs attached to Oncor's Statement of Intent to increase
rates, results in just and reasonable rates;
Oncor failed in its burden of proof to establish that adoption of its proposed rate base,
expenses, investment, return on equity, rate of return, and other rate issues as presented in
Oncor's Statement of Intent to increase rates, result in just and reasonable rates.
The City authorizes its continued 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.
The City hereby orders Oncor to reimburse the City's rate case expenses as provided in the
Public Utility Regulatory Act and that Oncor shall continue to do so on a monthly basis and
within 30 days after submission of the AOC's invoices for the AOC'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.
The City, in coordination with the AOC, delegates to the City Manager and/or the City Attorney,
or designee of such office, review of the invoices of the lawyers and rate experts for
reasonableness before submitting the invoices to Oncor for reimbursement.
A copy of this resolution shall be sent to Mr. Matt Henry, Vice President, General Counsel,
Oncor, 1616 Woodall Rodgers Expressway, Dallas, Texas, 75202; Mr. Robert Schmidt,
Regulatory Manager, Oncor/Regulatory Financial, 1616 Woodall Rodgers Expressway, Dallas,
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Texas, 75202; and to Mr. Alfred R. Herrera, Herrera Law & Associates, PLLC, 4400 Medical
Pkwy, Austin, Texas 78756.
Section 4. 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 5. 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 6. 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.
PASSED AND APPROVED on the 2,8 ofOP�Ll' , 2025.
ATTEST:
1tiur2De
� rRubvn-Dmilsmore, City Secretary�u,� y
APPROVED AS TO FORM:
�j&
kyeNUS-Son, City Attorney
Resolution Number: tote
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Date Approved: