HomeMy WebLinkAbout2020-R-15 - Oncor Denial — RESOLUTION NO. 2020-R-15
A RESOLUTION OF THE CITY OF STEPHENVILLE, TEXAS FINDING THAT ONCOR ELECTRIC DELIVERY
COMPANY LLC'S APPLICATION FOR APPROVAL TO AMEND ITS DISTRIBUTION COST RECOVERY FACTOR
TO INCREASE DISTRIBUTION RATES WITHIN THE CITY SHOULD BE DENIED; AUTHORIZING
PARTICIPATION WITH ONCOR CITIES STEERING COMMITTEE; AUTHORIZING THE HIRING OF LEGAL
COUNSEL AND CONSULTING SERVICES; 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 Oncor Cities Steering Committee ("OCSC") is a coalition 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 in matters before the Public Utility Commission
("Commission") and the courts; and
WHEREAS, on or about April 3, 2020, Oncor filed with the Commission an Application to Amend
its Distribution Cost Recovery Factor ("DCRF"), Commission Docket No. 50734, seeking to increase
„_ distribution rates by $75.9 million annually (an approximately $0.88 increase to the average residential
customer's bill); and
WHEREAS, the City of Stephenville will cooperate with OCSC in coordinating their review of
Oncor's DCRF filing with designated attorneys and consultants, prepare a common response, negotiate
with the Company, and direct any necessary litigation, to resolve issues in the Company's filing; and
WHEREAS, all electric utility customers residing in the City will be impacted by this ratemaking
proceeding if it is granted; and
WHEREAS, working with the OCSC to review the rates charged by Oncor allows members to
accomplish more collectively than each city could do acting alone; and
WHEREAS, OCSC's members and attorneys recommend that members deny Oncor's DCRF.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE,TEXAS:
SECTION 1.
That the City is authorized to participate with OCSC in Commission Docket No. 50734.
SECTION 2.
That, subject to the right to terminate employment at any time, the City of Stephenville, Texas, hereby
authorizes the hiring of the law firm of Lloyd Gosselink Rochelle & Townsend, P.C. 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 Oncor's DCRF
application.
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 the
adoption of this Resolution.
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 Tab Urbantke,Attorney for Oncor,at Hunton Andrews Kurth
LLP, 1445 Ross Avenue,Suite 3700, Dallas,Texas 75202,and to Thomas Brocato,General Counsel to OCSC,
at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, TX 78767-1725, or
tbrocato@Iglawfirm.com.
PASSED AND APPROVED this 2"d day of June, 2020
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Reviewed by en L. Barnes,
City Manager
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Randy Thomas, City Attorney
Approved as to form and legality