HomeMy WebLinkAboutOrdinance 25787-10-2022 ORDINANCE NO. 25787-10-2022
AN ORDINANCE OF THE CITY OF FORT WORTH,TEXAS
FINDING THAT ONCOR ELECTRIC DELIVERY
COMPANY LLC'S ("ONCOR" OR "COMPANY")
APPLICATION TO CHANGE 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 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 May 13,2022,Oncor filed with the City an application to increase
system-wide transmission and distribution rates by $251 million or approximately 4.5% over
present revenues. The Company asks the City to approve an 11.2% increase in residential rates
and a 1.6% increase in street lighting rates; and
WHEREAS,on June 14,2022,the City adopted an ordinance suspending the effective date
of Oncor's proposed rates for the maximum period allowed by law to permit adequate time to review
the proposed changes and to establish reasonable rates; 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; and
NOW THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH,TEXAS:
CFW Ordinance Denying Oncor Rates 2022 Page 1 of 2
SECTION 1.
That 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.
That the Company shall continue to charge its existing rates to customers within the City.
SECTION 3.
That 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.
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.
That 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., 816
Congress Ave., Suite 1900, Austin, TX 78701.
APPROVED AS TO FORM AND LEGALITY: ATTEST
C W 11"PI V&
Jannette S.Goodall(Oct 14,2022 09:43 CDT)
Christopher Austria, Assistant City Attorney Jannette S. Goodall, City Secretary
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CFW Ordinance Denying Oncor Rates 2022 Page 2 of 2
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 10/11/22 M&C FILE NUMBER: M&C 22-0823
LOG NAME: 21ONCOR ELECTRIC DELIVERY RATE CHANGE 2022
SUBJECT
(ALL)Adopt Ordinance Denying the Application of Oncor Electric Delivery Company LLC to Increase System Wide Transmission and Distribution
Rates
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:
The purpose of this Mayor and Council Communication (M&C)is to adopt the attached ordinance denying the proposed increase to system-wide
transmission and distribution rates by Oncor Electric Delivery Company LLC and finding that such increase is unreasonable and excessive.
On May 13,2022, Oncor Electric Delivery Company LLC (Oncor)filed an application with cities retaining original jurisdiction seeking to increase
system-wide transmission and distribution rates by about$251 million or approximately 4.5 percent over present revenues. Oncor asks the City
of Fort Worth to approve an 11.2 percent increase in residential rates and a 1.6 percent increase in street lighting rates.The impact of this
requested increase on an average residential customer using 1,300 kilowatt-hours per month would be about$6.02 per month.
On August 14,2022 the City took action to suspended Oncor's rate request from taking effect for 90 days,the fullest extent permissible under the
law. This time period has permitted the City,through its participation with the Steering Committee of Cities Served by Oncor(Steering
Committee),to determine that the proposed rate increase is unreasonable. Consistent with the recommendations of the experts engaged by the
Steering Committee, Oncor's request for a rate increase should be denied.
The consultants identified numerous expenses as being proposed rates as unreasonable and excessive. Accordingly,the Steering Committee's
attorneys recommend that all members,including the City of Fort Worth, deny the rate change application proposed by Oncor. 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.53601)currently pending at the Commission.
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 this recommendation will have no material effect on City funds.
Submitted for City Manager's Office by. Dana Burghdoff 8018
Originating Business Unit Head: Steve Cooke 5134
Additional Information Contact: Juanita Rigsby 8518