HomeMy WebLinkAboutOrdinance 26319-08-2023ORDINANCE NO.26319-08-2023
AN ORDINANCE OF THE CITY OF FORT WORTH,
TEXAS FINDING THAT ONCOR ELECTRIC DELIVERY
COMPANY LLC'S APPLICATION TO AMEND ITS
DISTRIBUTION COST RECOVERY FACTOR AND
UPDATE GENERATION RIDERS TO INCREASE
DISTRIBUTION RATES WITHIN THE CITY SHOULD BE
DENIED; AUTHORIZING PARTICIPATION WITH THE
STEERING COMMITTEE OF CITIES SERVED BY
ONCOR; AUTHORIZING HIRING OF LEGAL COUNSEL;
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
("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 June 29, 2023, Oncor filed with the City an Application to
Amend its Distribution Cost Recovery Factor and Update Mobile Generation Riders, PUC
Docket No. 55190, seeking to increase electric distribution rates by approximately $152.78
million and update Oncor's Rider Mobile Generation and Rider Wholesale Mobile Generation to
recover $1.07 million related to mobile generation facilities; and
WHEREAS, all electric utility customers residing in the City will be impacted by this
ratemaking proceeding if it is granted; and
WHEREAS, the City's Charter grants the City Council the power by ordinance to fix and
regulate the rates of all public utilities in the City; and
WHEREAS, OCSC is coordinating its review of Oncor's DCRF filing with designated
attorneys and consultants to resolve issues in the Company's application; and
WHEREAS, OCSC members and attorneys recommend that members deny the DCRF.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS:
Section 1. That the City is authorized to participate with Cities in PUC Docket No.
55190.
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 and consultants to negotiate with
the Company, make recommendations to the City regarding reasonable rates, and to direct any
necessary administrative proceedings or court litigation associated with an appeal of this
application filed with the PUC.
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 the Company 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 presentation of an invoice to Oncor.
Section 6. 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 7. That a copy of this Ordinance shall be sent to J. Michael Sherburne, Vice
President — Regulatory, Oncor Electric Delivery Company LLC, 1616 Woodall Rodgers
Freeway, Dallas, Texas 75202; to Tab R. Urbantke, Hunton Andrews Kurth LLP, 1445 Ross
Avenue, Suite 3700, Dallas, Texas 75202; and to Thomas L. Brocato, General Counsel to OCSC,
at Lloyd Gosselink Rochelle & Townsend, 816 Congress Ave., Suite 1900, Austin, Texas 78701.
Section 8. That this Ordinance shall be and become effective from and after its
adoption.
PASSED AND APPROVED this 8th day of August, 2023.
44pUMnia
1 of°FORr�aa
00
°°° G°A
APPROVED AS TO FORM AND LEGALITY: ATTEST: �o° ° ��a
o SZC
Assistant City Attorney Jannette S. Goodall, City rcOOpO°°
2
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 08/08/23 M&C FILE NUMBER: M&C 23-0643
LOG NAME: 21 ONCOR ELECTRIC DELIVERY RATE INCREASE DCRF FILING 2023
SUBJECT
(ALL) Adopt Attached Ordinance 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
RECOMMENDATION:
It is recommended that City Council:
1, Adopt the attached ordinance denying the Application for Approval to Amend its Distribution Cost Recovery Factor rate filed by Oncor
Electric Delivery Company LLC on June 29, 2023; 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 the Distribution Cost Recovery Factor.
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.
On June 29, 2023, Oncor Electric Delivery Company, LLC (Oncor) filed an Application to Amend its Distribution Cost Recovery Factor and update
its Mobile Generation Riders to increase distribution rates within each of the cities in its service area. In the filing, Oncor asserts it is seeking an
increase in distribution revenues of approximately $152.78 million and an update to its Rider Mobile Generation and Rider Wholesale Mobile
Generation to recover revenue related to mobile generation unit leasing and operation. The Rider would recover approximately $1.07 million.
Under state law, the City of Fort Worth (City) has original jurisdiction over the rates, operations, and services of Oncor in the City. Therefore, state
law also allows a municipality's governing body, with original jurisdiction, 60 days to act on the application. Furthermore, the City's Charter grants
the City Council the power by ordinance to fix and regulate the rates of all public utilities in the City.
It is recommended that the City Council adopt the attached Ordinanceto 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 of the
Steering Committee.
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.
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 have no material effect on City Funds.
Submitted for Cily Managees Office by: Dana Burghdoff 8018
Originating Business Unit Head: Ricardo Salazar 8379
Additional Infonnation Contact: Juanita Rigsby 8518