HomeMy WebLinkAboutOrdinance 25551-06-2022 ORDINANCE NO. 25551-06-2022
ORDINANCE SUSPENDING THE AUGUST 1, 2022
EFFECTIVE DATE OF ONCOR ELECTRIC DELIVERY
COMPANY'S REQUESTED RATE CHANGE TO PERMIT
THE CITY 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
THE COMPANY AND DIRECT ANY NECESSARY
LITIGATION AND APPEALS; DIRECTING
REIMBURSEMENT OF 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 FOR THE STEERING COMMITTEE;
PROVIDING A SEVERABILITY CLAUSE; AND
PROVIDING AN EFFECTIVE DATE
WHEREAS, on or about May 13, 2022, Oncor Electric Delivery Company ("Oncor" or
"Company"), pursuant to PURA §§ 33.001 and 36.001 filed with the City of Fort Worth ("City") a
Statement of Intent to increase electric transmission and distribution rates in all municipalities
exercising original jurisdiction within its service area effective August 1, 2022; and
WHEREAS, Oncor asks the City to approve an 11.2% increase in residential rates and a
1.6% increase in street lighting rates. If approved, a residential customer using 1,300 kWh per
month would see a bill increase of about $6.02 per month; and
WHEREAS, the City of Fort Worth is a member of the Steering Committee of Cities Served
by Oncor ("Steering Committee") and will cooperate with the 169 similarly situated city members
and other city participants in conducting a review of the Company's application and to hire and direct
legal counsel and consultants and to prepare a common response and to negotiate with the Company
prior to getting reasonable rates and direct any necessary litigation; and
WHEREAS, PURA § 36.108 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, PURA § 33.023 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.
CFW Ordinance Suspending Oncor Rates 2022 Page 1 of 2
That the August 1, 2022 effective date of the rate request submitted by Oncor on or about
May 13, 2022, 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 purpose
of said meeting was given as required.
SECTION 5.
A copy of this ordinance shall be sent to Oncor, Care of Howard V. 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: ATTEST
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Christopher A tria(Jun 16,202213:27 CDT) J�iette S.Goodall(Jun 16,2D2213 CDT)
Christopher Austria,Assistant City Attorney Jannette S. Goodall,City Secreta
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ADOPTED AND EFFECTIVE: June 14, 2022
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CFW Ordinance Suspending Oncor Rates 2022 Page
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City of Fort Worth,Texas
Mayor and Council Communication
DATE: 06/14/22 M&C FILE NUMBER: M&C 22-0422
LOG NAME: 21 ONCOR ELECTRIC DELIVERY RATE CHANGE 2022
SUBJECT
(ALL)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
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance which:
1. Suspends the 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 May 13,2022, Oncor Electric Delivery Company(Oncor)filed an application with Fort Worth and other Cities;who retain their original
jurisdiction,seeking to increase system-wide transmission and distribution rates. Oncor's application requests new rates that would produce an
estimated$251 million in additional revenue per year on a system-wide basis, representing a 4.5 percent increase over present revenues with an
11.2 percent increase in residential rates and a 1.6 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 on the date identified in Oncor's filing,which must be at least 30 days after the date of filing.
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 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.
The original filing proposed an effective date of June 17,2022,but staff has been advised that there is an issue with Oncor's original petition and
that Oncor intends to re-notice their petition,which will result in a later proposed effective date. The attached ordinance will suspend Oncor's
effective date(original or revised)for the longer of 90 days or the maximum period allowed by state law. Oncor has agreed that it has no objection
to the City's suspension ordinance applying to the effective date in both the original filing and the forthcoming re-noticed filing.
Current rates would remain in place during the suspension period.
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 approval of these recommendations will have no material effect on City funds.
Submitted for City Manager's Office b_iL Dana Burghdoff 8018
Originating Business Unit Head: Steve Cooke 5134
Additional Information Contact: Juanita Rigsby 8518