HomeMy WebLinkAboutResolution 4723-12-2016 A Resolution
NO. 4723-12-201.6
REVISING AND RE-ESTABLISHING THE PROCEDURAL SCHEDULE FOR THE
SHOW CAUSE PROCEEDING INITIATED BY RESOLUTION 4619-04-2016 FOR
ONCOR ELECTRIC DELIVERY COMPANY,LLC; REAFFIRMING ALL OTHER
ASPECTS OF SUCH RESOLUTION; NOTING COMPLIANCE WITH
OPEN MEETINGS ACT; AND REQUIRING NOTICE OF PASSAGE
WHEREAS, the City of Fort Worth is a regulatory authority under the Public Utility
Regulatory Act ("PURA") and has original jurisdiction over the rates of Oncor Electric Delivery
Company, LLC ("Oncor") to determine if such rates are just and reasonable; and
WHEREAS, pursuant to Sections 33.021, 36.003 and 36.151 of PURA, the City of Fort
Worth passed Resolution 4619-04-2016 compelling Oncor to show cause why its rates should not be
reduced following the Public Utility Commission's ("PUC's") approval of the transformation of
Oncor into a Real Estate Investment Trust ("REIT"), which would nullify a presumed federal tax
liability embedded in Oncor's rates; and
WHEREAS, after that resolution was adopted, the plan to transform Oncor into a REIT was
withdrawn by Oncor's current majority owner, Energy Future Holdings Corporation ("EFH"),
resulting in ambiguity over who would own Oncor when EFH emerged from bankruptcy, which
caused the City of Fort Worth to adopt Resolution 4658-08-2016, suspending the original procedural
schedule; and
WHEREAS, NextEra Energy, Inc. filed an application on or about November 1, 2016 with the
PUC to acquire Oncor and announced in its application that if the acquisition is successful, NextEra
will file an Oncor rate change application on or before July 1, 2017; and
WHEREAS, Oncor's current authorized rate of return on equity exceeds the reasonable range
of authorized returns approved by the PUC over the past several years, which suggests Oncor may be
overeaming; and
WHEREAS, it is strategically advantageous for the City of Fort Worth and the PUC to be
aware of any change in rates intended by NextEra and Oncor prior to a final decision by the PUC on
whether NextEra's acquisition of Oncor is in the public interest; and
ORT WORT
WHEREAS, the Executive Committee of the Steering Committee of Cities Served by Oncor,
of which the City of Fort Worth is a member, endorsed a recommendation of legal counsel to re-
establish a procedural schedule for the show cause resolutions adopted by Committee members; and
WHEREAS, the Steering Committee of Cities Served by Oncor gave notice to Oncor on
November 17, 2016 that a rate filing would be due on or before March 17, 2017 in compliance with
the adopted show cause resolutions, including City of Fort Worth's Resolution 4619-04-2016,
and the PURA which mandates that utilities be afforded 120 days to prepare a rate application; and
WHEREAS, the City Council of the City of Fort Worth finds it advisable and in the
public interest to revise and re-establish a procedural schedule for the show cause proceeding.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF FORT WORTH, TEXAS:
SECTION 1. That the procedural schedule established in Resolution 4619- 04-2016 is
hereby revised and re-established as follows:
Oncor shall make a rate justification filing on or before March 17, 2017;
City Staff, consultants and legal counsel will make a recommendation to the City
Council regarding the Oncor rate filing on or before April 7, 2016;
Oncor may submit a written rebuttal to said recommendation on or before April 21,
2017;
and
The City Council of the City of Fort Worth will take action on the Oncor rate filing in
a public hearing on or before the first regularly scheduled meeting in May 2017
SECTION 2. That all other aspects of Resolution 4619- 04--2016, including, but not limited
to,the designation of representatives, consultants, and legal counsel, are hereby reaffirmed.
SECTION 3. That it is hereby officially found and determined that the meeting at which
this resolution was passed was open to the public as required by law, and that public notice of the
time, place, and purpose of said meeting was given all as required by Section 551.041, Texas
Government Code.
ORTWO
SECTION 4. That, following adoption, a copy of this Resolution shall be sent to E. Allen
Nye, Jr., Senior Vice President, General Counsel and Secretary, Oncor Electric Delivery
Company, LLC, 1616 Woodall Rodgers Freeway, Dallas, Texas 75202, and to Geoffrey Gay,
General Counsel to the Steering Committee of Cities Served by Oncor, at Lloyd Gosselink Rochelle
& Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725.
Adopted this 13th day of December, 2016.
Betsy Price, ayor
APPROVED AS TO FORM
AND LEGALITY:
Sarah J. F enwider, City Attorney ,G4° FOAp��4
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ATTEST:
By: (YVL—� A,0�'
Mary J. a) r, ity ecretary