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Home My WebLink AboutResolution 5091-05-2019 A Resolution NO. 5091-05-2019 A RESOLUTION OF THE CITY OF FORT WORTH, TEXAS FINDING THAT ONCOR ELECTRIC DELIVERY COMPANY LLC'S APPLICATION FOR APPROVAL TO AMEND ITS DISTRIBUTION COST RECOVERY FACTOR PURSUANT TO 16 TEX. ADMIN. CODE §25.243 TO INCREASE DISTRIBUTION RATES WITHIN THE CITY SHOULD BE DENIED; 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 Fort Worth, Texas ("City") is an electric utility customer of Oncor Electric Delivery Company LLC ("Oncor"), 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 ("OCSC"), a membership 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 April 8, 2019 Oncor filed with the City an Application for Approval to Amend its Distribution Cost Recovery Factor ("DCRF"), PUC Docket No. 49427, seeking to increase electric distribution rates by approximately $29,433,804; and WHEREAS, all electric utility customers residing in the City will be impacted by this ratemaking proceeding if it is granted; and WHEREAS, OCSC is coordinating its review of the DCRF filing with designated attorneys and consultants to resolve issues in Oncor's application; and WHEREAS, OCSC members and attorneys recommend that members deny the DCRF. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: 1. That the City is authorized to participate with OCSC in PUC Docket No. 49427. YQRTW0401J�L Resolution No. 5091-05-2019 Page 2 2. That subject to the right to terminate employment at any time, the City hereby authorizes OCSC to hire the law firm of Lloyd Gosselink and consultants to negotiate with Oncor, make recommendations to the City regarding reasonable rates, and to direct any necessary administrative proceedings or court litigation associated with an appeal of the DCRF filed with the PUC. 3. That the rates proposed by Oncor to be recovered through the DCRF charged to customers located within the City limits, are hereby found to be unreasonable and shall be denied. 4. That Oncor shall continue to charge its existing rates to customers within the City. 5. That the City's reasonable rate case expenses shall be reimbursed in full by Oncor within 30 days of presentation of an invoice to Oncor. 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. 7. That a copy of this Resolution shall be sent to Matthew C. Henry, 1616 Woodall Rodgers Freeway, Dallas, Texas 75202 and to Thomas Brocato, Legal Counsel to OCSC, at Lloyd Gosselink Rochelle&Townsend, P.C.,P.O. Box 1725,Austin, Texas 78767-1725. Adopted this 21,1 day of May 2019. ATTEST: O�•f®Rj'�O ....... ....• By — 47 4��ad—Pi.` � = XAcj Gonzales, Assi to t City Secretary ORT WORT 5/22/2019 M&C-Council Agenda City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 5/21/2019 - Resolution No. 5091-05-2019 DATE: Tuesday, May 21, 2019 REFERENCE NO.: **G-19543 LOG NAME: 21ONCOR ELECTRIC DELIVERY RATE INCREASE DCRF FILING SUBJECT: Adopt Resolution Denying Application for Approval to Amend its Distribution Cost Recovery Factor Proposed by Oncor Electric Delivery Company LLC and Authorizing Steering Committee of Cities Served by Oncor to Retain Law Firm and Consultants to Evaluate the Application (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that City Council 1. Adopt a Resolution denying the application for approval to Amend its Distribution Cost Recovery Factor rate filed by Oncor Electric Delivery Company LLC on or about April 8, 2019; and 2. Authorizes the City Manager to cooperate with other cities in the Steering Committee of Cities served by Oncor Electric Delivery Company LLC to hire and direct legal counsel (Lloyd Gosselink Rochelle & Townsend, P.C.) and consultants, to permit adequate time to review the filing and identify adjustments that should be made to the Application for Approval to Amend its Distribution Cost Recovery Factor (DCRF) DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to take action to deny an Application for Approval to Amend its Distribution Cost Recovery Factor (DCRF) filed by Oncor Electric Delivery Company LLC (Oncor). On April 8, 2019, Oncor filed its DCRF application with the Public Utility Commission of Texas (Commission ) Docket No. 49427. In the DCRF, Oncor is seeking an increase in distribution revenues of approximately$29,433,804. This is Oncor's second DCRF filing under a law adopted in 2011 allowing electric utilities to file limited issue, limited review cases. 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 amended DCRF rates will automatically take effect September 1, 2019. However, state law also allows a municipality's governing body with original jurisdiction over an application for the DCRF or DCRF update to make a final decision on the application within 60 days after the application was filed. If the governing body does not make a final decision within 60 days after the application was filed, the application is deemed denied by the governing body. The electric utility may appeal the governing body's final decision to the commission no later than 30 days after the decision, regardless of whether the governing body approves or denies the application. The electric utility's appeal automatically suspends the governing body's final decision. It is recommended that the City Council deny the effectiveness of the rates and that the City work with the Steering Committee of Cities served by Oncor (Steering Committee) and its legal and technical consultants to assist the City in reviewing the DCRF application and making such a determination. The cost of the direct legal counsel and consultant is covered by the City's annual membership with the apps2.cMnet.org/ecouncii/printmc.asp?id=26974&pri nt=true&DocType=pre\iew&page=review&counci ldate=5/21/2019 1/2 5/22/2019 M&C-Council Agenda Steering Committee. 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- 15096), Oncor is required to reimburse the Steering Committee for reasonable consultant and other regulatory costs associated with this review. 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 Program ctivity Budget Reference # moun ID 1A ID Year (Chartfield 2) FROM Fund Department ccoun Project Program ctivity Budget Reference # Amount ID ID Year (Chartfield 2) CERTIFICATIONS: Submitted for City Manager's Office by_ Jay Chapa (5804) Originating Department Head: Roger Venables (6334) Additional Information Contact: apps2.cf,Anet.org/ecounciI/printmc.asp?id=26974&print=true&DocType=preview&page=re\hew&counci[date=5/21/2019 212