HomeMy WebLinkAboutIR 10000 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10000
To the Mayor and Members of the City Council April 4, 2017
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Subject: ONCOR APPLICATION FOR RATE INCREASE
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On March 17, 2017, Oncor Electric Delivery Company LLC ("Oncor") filed an application to increase the
rates it charges for transmission and distribution of electricity in Fort Worth and throughout the Oncor
system in Texas. Oncor proposed to increase rates systemwide by $317 million or approximately 7.5%
over present revenues. If the rate increase were approved, the average residential customer using 1000
kWh per month would see a bill increase of approximately $6.68 per month.
Under the Texas Public Utility Regulatory Act ("PURA"), the Fort Worth City Council retains original
jurisdiction over the rates, operations, and services of an electric utility operating within the City.
Secondary or appellate jurisdiction rests with the Public Utility Commission of Texas.
Before the City Council makes a decision concerning a rate request, PURA provides that the City Council
may engage rate consultants to assist in studying the rate request and requires that the utility reimburse
the City for the reasonable cost of the study.
PURA also authorizes City Council to suspend implementation of the increased rates for 90 days beyond
the date the rates would ordinarily go into effect. Such additional time is to allow City Council to study the
request. After the 90 day suspension, Oncor is authorized to place the proposed rates into effect under
bond. The portion of the rates placed into effect under bond is refundable to customers if final rates, as a
result of any appeal, are lower than the rates under bond.
Fort Worth is part of a multicity coalition, the Oncor Cities Steering Committee (OCSC), that works
cooperatively on electric utility issues. At the City Council meeting on April 11, 2017, Staff will present a
Mayor and Council Communication recommending suspension of the proposed rate increase and
authorization to work with OCSC and its consultants to examine the rate request and present
recommendations for further action.
The recent filing is the first comprehensive base rate case that Oncor has filed since 2011. In the 2011
case, City Council suspended the rate increase and authorized the engagement of consultants to analyze
the requested increase. On June 7, 2011, after working with OCSC in reviewing the rate filing, the City
Council approved an increase that was less than Oncor's original request.
Final disposition of the rate case will also dispose of the show cause proceeding regarding Oncor's rates
that the City initiated last year.
If you have any questions, please contact Denis McElroy, Assistant City Attorney, at (817) 392-2758.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS