HomeMy WebLinkAboutOrdinance 22821-08-2017 ORDINANCE NO. 22821-08-2017
AN ORDINANCE DENYING THE APPLICATION TO
CHANGE RATES WITHIN THE CITY OF FORT WORTH
FILED BY ONCOR ELECTRIC DELIVERY COMPANY
LLC; CONFIRMING RATES THAT ONCOR MAY
CONTINUE TO ASSESS CUSTOMERS IN THE CITY OF
FORT WORTH; DIRECTING ONCOR TO REIMBURSE
THE CITY'S REASONABLE RATE CASE EXPENSES;
FINDING THAT THE MEETING AT WHICH THIS
ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS
REQUIRED BY LAW; REQUIRING NOTICE OF THIS
ORDINANCE TO THE COMPANY AND LEGAL COUNSEL
WHEREAS, the City of Fort Worth, 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
("Steering Committee"), 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; and
WHEREAS, on or about March 17, 2017, Oncor filed with the City an application to
increase system-wide transmission and distribution rates by $317 million or approximately 7.5%
over present revenues, with the Company asking the City to approve an 11.8% increase in
residential rates and a 0.5% increase in street lighting rates; and
WHEREAS, although the proposed rates constitute a major change under Chapter 36 of
the Texas Utilities Code, no complaints were received before the 46th day after the date notice of
the change was filed, meaning an informal proceeding in the form of City Council consideration
of a Mayor and Council Communication and this ordinance is legally sufficient; and
WHEREAS, the Steering Committee is coordinating its review of Oncor's application
and working with the designated attorneys and consultants to resolve issues in the Company's
filing; and
WHEREAS, through review of the application, the Steering Committee's consultants
determined that Oncor's proposed rates are excessive; and
WHEREAS, the Steering Committee's members and attorneys recommend that members
deny the Application.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS THAT:
Section 1.
The rates proposed by Oncor to be recovered through its electric rates charged to
customers located within the City limits, are hereby found to be unreasonable and shall be
denied.
Section 2.
The Company shall continue to charge its existing rates to customers within the City.
Section 3.
The City's reasonable rate case expenses shall be reimbursed in full by Oncor within 30
days of the adoption of this Ordinance.
Section 4.
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
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.
APPROVED AS TO FORM: ATTEST:
hn B. Strong &iary J.
Assistant Cityorney City Secretary
Approved and Effective: August 15, 2017
Ordinance No.22821-08-2017 Page 2 of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 8/15/2017 - Ordinance No. 22821-08-2017
DATE: Tuesday, August 15, 2017 REFERENCE NO.: **G-19066
LOG NAME: 21ONCOR RATE INCREASE DENIAL
SUBJECT:
Adopt Ordinance Denying the Application of Oncor Electric Delivery Company LLC to Increase System
Wide Transmission and Distribution Rates (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance, denying the application of Oncor
Electric Delivery Company LLC to increase system wide transmission and distribution rates.
DISCUSSION:
On March 17, 2017, Oncor Electric Delivery Company LLC (Oncor or Company) filed an application with
cities retaining original jurisdiction to change the Company's rates. In the filing, Oncor seeks to increase
system-wide transmission and distribution rates by $317 million, or approximately 7.5 percent, over
present revenues. The Company asks the City of Fort Worth (City) to approve an 11.8 percent increase in
residential rates and a 0.5 percent increase in street lighting rates. If approved, a residential customer
using 1000 kWh per month would see a bill increase of about $6.68 per month.
Fort Worth works collectively with 158 other cities through the Steering Committee of Cities Served by
Oncor (Steering Committee) to address electric utility issues, including reviewing and making
recommendations on rate filings. In March the Steering Committee engaged the services of three
consultants, Mr. Lane Kollen, Mr. Richard Baudino and Mr. Karl Nalepa, to review Oncor's application.
The consultants identified numerous expenses as being unreasonable and proposed significant reductions
to Oncor's request. Accordingly, the Steering Committee's attorneys recommend that all members,
including the City, take action to deny the rate change. Once the Ordinance is adopted, Oncor will have
30 days to appeal the decision to the Public Utility Commission of Texas where the appeal will be
consolidated with Oncor's filing (i.e. PUC Docket No. 46957) currently pending at the Commission.
This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that there is no material impact to the City's 2017 budget.
FUND IDENTIFIERS (FIDs):
TO
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Logname: 21 ONCOR RATE INCREASE DENIAL Page 1 of 2
FROM
Fund Departmentccoun Project Program ctivity Budget Reference # moun
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CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Sarah Fullenwider (7606)
Originating Department Head: J B Strong (7627)
Additional Information Contact: Steve Cooke (5118)
Logname: 21 ONCOR RATE INCREASE DENIAL Page 2 of 2