HomeMy WebLinkAboutResolution 5226-05-2020 A Resolution
NO. 5226-05-2020
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
TO INCREASE DISTRIBUTION RATES WITHIN THE
CITY SHOULD BE DENIED; AUTHORIZING
PARTICIPATION WITH ONCOR CITIES STEERING
COMMITTEE; AUTHORIZING THE HIRING OF LEGAL
COUNSEL AND CONSULTING SERVICES; FINDING
THAT THE CITY'S REASONABLE RATE CASE
EXPENSES SHALL BE REIMBURSED BY ONCOR;
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 ONCOR 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;
WHEREAS, the Oncor Cities Steering Committee ("OCSC") is 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 in matters before the
Public Utility Commission("Commission") and the courts;
WHEREAS, on or about April 3, 2020, Oncor filed with the Commission an Application
to Amend its Distribution Cost Recovery Factor ("DCRF"), Commission Docket No. 50734,
seeking to increase distribution rates by $75.9 million annually (an approximately $0.88 increase
to the average residential customer's bill);
WHEREAS, the City will cooperate with OCSC in coordinating their review of Oncor's
DCRF filing with designated attorneys and consultants, prepare a common response, negotiate
with Oncor, and direct any necessary litigation,to resolve issues in Oncor's filing;
WHEREAS, all electric utility customers residing in the City will be impacted by this
ratemaking proceeding if it is granted;
WHEREAS, working with the OCSC to review the rates charged by Oncor allows
members to accomplish more collectively than each city could do acting alone; and
WHEREAS, OCSC's members and attorneys recommend that members deny Oncor's
DCRF.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS, THAT:
SECTION 1. That the City is authorized to participate with OCSC in Commission
Docket No. 50734.
SECTION 2. That, subject to the right to terminate employment at any time, the City
hereby authorizes the hiring of the law firm of Lloyd Gosselink Rochelle & Townsend, P.C. 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 Oncor's DCRF application.
SECTION 3. That the rates proposed by Oncor to be recovered through its DCRF
charged to customers located within the City limits, are hereby found to be unreasonable and
shall be denied.
SECTION 4. That Oncor shall continue to charge its existing rates to customers within
the City.
SECTION 5. That the City's reasonable rate case expenses shall be reimbursed in full
by Oncor within 30 days of the adoption of this Resolution.
SECTION 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.
SECTION 7. That a copy of this Resolution shall be sent to Tab Urbantke, Attorney for
Oncor, at Hunton Andrews Kurth LLP, 1445 Ross Avenue, Suite 3700, Dallas, Texas 75202,
and to Thomas Brocato, General Counsel to OCSC, at Lloyd Gosselink Rochelle & Townsend,
P.C., P.O. Box 1725, Austin, TX 78767-1725, or tbrocato@lglawfirm.com.
Adopted this 5°i day of May 2020.
Rr
ATTEST:
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By: * .............
Marry J. Kayse y S Greta Tr
City of Fort Worth,Texas
Mayor and Council Communication
DATE: 05/05/20 M&C FILE NUMBER: M&C 20-0295
LOG NAME: 21 ONCOR 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 3,2020;and
2.Authorize 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 3,2020, Oncor filed its DCRF application with the Public Utility Commission of Texas(Commission)Docket No.50734. In the DCRF,
Oncor is seeking an increase in distribution revenues of approximately 75,889,531.00.
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 1,2020.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 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.
A Form 1295 is not required because: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.
Submitted for City Manager's Office by: Kevin Gunn 2015
Originating Business Unit Head: Steve Cooke 5134
Additional Information Contact: Roger Venables 6334