HomeMy WebLinkAboutOrdinance 22660-04-2017 ORDINANCE NO. 22660-04-2017
AN ORDINANCE SUSPENDING THE APRIL 21, 2017,
EFFECTIVE DATE OF ONCOR ELECTRIC DELIVERY
COMPANY LLC'S REQUESTED RATE CHANGE TO
PERMIT TIME TO STUDY THE REQUEST AND TO
ESTABLISH REASONABLE RATES; APPROVING
COOPERATION WITH THE STEERING COMMITTEE OF
CITIES SERVED BY ONCOR TO HIRE LEGAL AND
CONSULTING SERVICES AND TO NEGOTIATE WITH
COMPANY AND DIRECT ANY NECESSARY LITIGATION
AND APPEALS; DIRECTING REIMBURSEMENT OF THE
CITY'S REASONABLE RATE CASE EXPENSES; FINDING
THAT MEETING AT WHICH THIS ORDINANCE IS
PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY
LAW; DIRECTING GIVING OF NOTICE; PROVIDING A
SEVERABILITY CLAUSE; AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, pursuant to Sections 33.001 and 36.001 of the Public Utility Regulatory
Act (PURA), on or about March 17, 2017 Oncor Electric Delivery Company LLC (Oncor or
Company) filed with the City of Fort Worth and all other municipalities retaining original
jurisdiction a Statement of Intent to increase electric transmission and distribution rates by $317
million system-wide or approximately 7.5% over present revenues within its service area,
effective April 21, 2017; and
WHEREAS, if approved as proposed, there would be an 11.8% increase in residential
rates and a 0.5% increase in street lighting rates with a residential customer using 1000 kWh per
month seeing an average bill increase of about $6.68 per month; and
WHEREAS, the City of Fort Worth is a member of the Steering Committee of Cities
Served by Oncor ("Steering Committee") and works cooperatively with the 156 similarly
situated city members and other city participants in conducting reviews of these types of
applications and in hiring and directing legal counsel and consultants to prepare a common
Ordinance No.22660-04-2017 Page 1 of 3
response, negotiate with the Company in an effort to agree on reasonable rates, and conduct any
necessary litigation, including appeals; and
WHEREAS, Section 36.108 of PURA grants local regulatory authorities the right to
suspend the effective date of proposed rate changes for ninety (90) days after the date the rate
change would otherwise be effective; and
WHEREAS, Section 33.023 of PURA provides that costs incurred by cities in
ratemaking proceedings are to be reimbursed by the regulated utility.
NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS:
SECTION 1.
That the April 21, 2017 effective date of the rate request submitted by Oncor on or about
March 17, 2017, be suspended for the maximum period allowed by law to permit adequate time
to review the proposed changes and to establish reasonable rates.
SECTION 2.
As indicated in the City's resolution approving membership in the Steering Committee,
the Executive Committee of Steering Committee is authorized to hire and direct legal counsel
and consultants, negotiate with the Company, make recommendations regarding reasonable
rates, and to intervene and direct any necessary administrative proceedings or court litigation
associated with an appeal of a rate ordinance and the rate case filed with the City or Public
Utility Commission.
SECTION 3.
That the City's reasonable rate case expenses shall be reimbursed by Oncor.
SECTION 4.
That it is hereby officially found and determined that the meeting at which this ordinance
is passed is open to the public as required by law and the public notice of the time, place, and
Ordinance No. 22660-04-2017 Page 2 of 3
purpose of said meeting was given as required.
SECTION 5.
A copy of this ordinance shall be sent to Oncor, Care of Howard Fisher, Oncor Electric
Delivery Company, LLC, 1616 Woodall Rodgers Freeway, Dallas, Texas 75202 and to Thomas
Brocato, Counsel to the Steering Committee, at Lloyd Gosselink Rochelle & Townsend, P.C.,
P.O. Box 1725,Austin, Texas 78767-1725.
SECTION 6.
If any portion, section or part of a section of this ordinance is subsequently declared
invalid, inoperative or void for any reason by a court of competent jurisdiction, the remaining
portions, sections or parts of sections of this Ordinance shall be and remain in full force and
effect and shall not in any way be impaired or affected by such decision, opinion or judgment.
SECTION 7.
This ordinance shall take effect and be in full force and effect from and after the date of
its adoption.
APPROVED AS TO FORM AND LEGALITY:
l
Denis cEly, ssistant City Attorney zry J. 1ty cretary
ADOPTED AND EFFECTIVE: April 11, 2017
Ordinance No.22660-04-2017 Page 3 of 3
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 4/11/2017 - Ordinance No. 22660-04-2017 NNW
DATE: Tuesday, April 11, 2017 REFERENCE NO.: **G-18983
LOG NAME: 21ONCOR ELECTRIC DELIVERY RATE CHANGE
SUBJECT:
Adopt Ordinance Suspending Effective Date of Rate Increase Proposed by Oncor Electric Delivery
Company LLC and Authorizing Retention of Consultants to Evaluate the Proposed Rates (ALL COUNCIL
DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance which:
1. Suspends the April 21, 2017 effective date of proposed rates filed by Oncor Electric Delivery Company
LLC, to permit adequate time to review the proposed changes and establish reasonable rates; and
2. Authorizes the City Manager to cooperate with other cities in the Steering Committee of Cities served
by Oncor Electric Delivery to hire and direct legal counsel and consultants, negotiate with the Company,
make recommendations to the City regarding reasonable rates, and direct any administrative proceedings
or litigation associated with the rate adjustments.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to take action to suspend application of a
proposed rate increase in accordance with state law to allow time for more thorough review of the filing
and determination of reasonable rates.
On or about March 17, 2017, Oncor Electric Delivery Company (Oncor) filed an application with Fort
Worth and other cities retaining original jurisdiction seeking to increase system-wide transmission and
distribution rates. The proposed effective date for the new rates is April 21, 2017. Oncor's application
requests new rates that would produce an estimated $317 million in additional revenue per year on a
system-wide basis, representing a 7.5 percent increase over present revenues with an 11.8 percent
increase in residential rates and a 0.5 percent in street lighting rates.
Under state law, the City has original jurisdiction over the rates, operations and services of Oncor in the
City. If the City takes no action on this matter, the new rates will automatically take effect April 21, 2017.
However, state law also allows the City to suspend the effectiveness of the rates for a period of up to an
additional 90 days so that the City may analyze Oncor's request and, following a public hearing, make a
determination as to whether it is lawful and reasonable. It is recommended that the City Council suspend
the effectiveness of the rates and that during the suspension the City work with the Steering Committee
and its legal and technical consultants to assist the City in reviewing the filing and making such a
determination.
In accordance with state law and pursuant to a the Settlement Agreement between Oncor and the
Steering Committee, ratified by City Council February 28, 2006 (Resolution No. 3316-02-2006, M&C G-
Logname: 21 ONCOR ELECTRIC DELIVERY RATE CHANGE Page I of 2
15096), Oncor is required to reimburse the Steering Committee for reasonable consultant and other
regulatory costs associated with this review.
The attached ordinance suspends the effectiveness of Oncor's requested rates for the maximum period
allowed by law, or 90 days. Current rates would remain in place during the suspension period.
This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that this action will have no material effect on City funds.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project JPrograms ctivity Budget Reference # �mount
ID ID (( Year (Chartfield 2)
FROM
Fundi Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year (Chartfield 2)
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Sarah Fullenwider (7606)
Originating Department Head: Denis C. McElroy (2758)
Additional Information Contact: Steve Cooke (5134)
Logname: 21 ONCOR ELECTRIC DELIVERY RATE CHANGE Page 2 of 2