HomeMy WebLinkAbout2018-R-07 - Denial of Oncor Distribution Cost Recovery Factor ._ RESOLUTION NO. 2018-R-07
A RESOLUTION OF THE CITY OF STEPHENVILLE, TEXAS FINDING THAT ONCOR ELECTRIC DELIVERY
COMPANY LLC'S APPLICATION FOR APPROVAL OF A DISTRIBUTION COST RECOVERY FACTOR
PURSUANT TO 16 TEX. ADMIN. CODE § 25..243 TO INCREASE DISTRIBUTION RATES WITHIN THE CITY
SHOULD BE DENIED; FINDING THAT THE CITY'S REASONABLE RATE CASE EXPENSES SHALL BE
REIMBURSED BY THE COMPANY; FINDING THAT THE MEETING AT WHICH THIS RESOLUTION IS PASSED
IS OPEN TO THE PUBLIC AS REQUIRED BY LAW; REQUIRING NOTICE OF THIS RESOLUTION TO THE
COMPANY AND LEGAL COUNSEL.
WHEREAS, the City of Stephenville, Texas ("City") is an electric utility customer of Oncor Electric
Delivery Company LLC ("Oncor" or "Company"), and a regulatory authority with an interest in the rates
and charges of Oncor; and
WHEREAS, the City is a member of the Steering Committee of Cities Served by Oncor("OCSC"), a
membership of similarly situated cities served by Oncor that have joined together to efficiently and cost
effectively review and respond to electric issues affecting rates charged in Oncor's service area; and
WHEREAS, on or about April 5, 2018 Oncor filed with the City an Application for Approval of a
Distribution Cost Recovery Factor ("DCRF"), PUC Docket No. 48231, seeking to increase electric
distribution rates by approximately$19,002,177; and
WHEREAS, all electric utility customers residing in the City will be impacted by this ratemaking
proceeding if it is granted; and
WHEREAS, Cities are coordinating its review of Oncor's DCRF filing with designated attorneys
and consultants to resolve issues in the Company's application; and
WHEREAS, Cities members and attorneys recommend that members deny the DCRF.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE,
TEXAS:
Section 1. That the City is authorized to participate with Cities in PUC Docket No. 48231.
Section 2. That subject to the right to terminate employment at any time, the City of
Stephenville hereby authorizes the hiring of the law firm of Lloyd Gosselink and consultants to negotiate
with the Company, make recommendations to the City regarding reasonable rates, and to direct any
necessary administrative proceedings or court litigation associated with an appeal of this application
filed with the PUC.
Section 3. That the rates proposed by Oncor to be recovered through its DCRF charged to
customers located within the City limits, are hereby found to be unreasonable and shall be denied.
Section 4. That the Company shall continue to charge its existing rates to customers within
the City.
Section 5. That the City's reasonable rate case expenses shall be reimbursed in full by
Oncor within 30 days of presentation of an invoice to Oncor.
Section 6. That it is hereby officially found and determined that the meeting at which this
Resolution is passed is open to the public as required by law and the public notice of the time, place, and
purpose of said meeting was given as required.
Section 7. That a copy of this Resolution shall be sent to Stephen N. Ragland, 1616
Woodall Rodgers Freeway, Dallas, Texas 75202 and to Thomas Brocato, General Counsel to the Cities, at
Lloyd Gosselink Rochelle &Townsend, P.C., P.O. Box 1725, Austin,Texas 78767-1725.
PASSED AND APPROVED this 1st day of May, 2018.
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c� �•,+ • •.herr K. on, II, Mayor
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Stacie 'g, City Secret:
APPROVED AS TO FORM:
Randy Thomas, City Attorney