HomeMy WebLinkAboutOrdinance 27840-08-2025ORDINANCE NO. 27840-08-2025
ORDINANCE OF THE CITY OF FORT WORTH SUSPENDING THE
JULY 31, 2025 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; 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
WHEREAS, on or about June 26, 2025, Oncor Electric Delivery Company ("Oncor"),
pursuant to Sections 33.001 and 36.001 of the Texas Public Utility Regulatory Act ("PURA"),
filed with the City of Fort Worth, a Texas home -rule municipal corporation, a Statement of
Intent to increase electric transmission and distribution rates (PUC Docket No. 58306) in all
municipalities exercising original jurisdiction within its service area effective July 31, 2025; 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 170 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, Section 36.108 of PURA 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, Section 33.023 of PURA 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:
SECTION 1. That the July 31, 2025, effective date of the rate request submitted by
Oncor on or about June 26, 2025, be suspended for the maximum period allowed by law to
permit adequate time to review the proposed changes and to establish reasonable rates.
Ordinance Suspending Oncor Rates (PUC Docket No. 58306) Page 1 of 2
SECTION 2. As indicated in the City's Ordinance 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 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 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. This Ordinance shall take effect and be in full force and effect from and
after the of its adoption.
APPROVED AS TO FORM AND LEGALITY: ATTEST:
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Lawrence C. Collister, Sr. Asst. City Attorney
ADOPTED AND EFFECTIVE: August 12, 2025
Jannette S. Goodall, City Secretary
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Ordinance Suspending Oncor Rates (PUC Docket No. 5 83 06) Page 2 of 2
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 08/12/25 M&C FILE NUMBER: M&C 25-0699
LOG NAME: 21 ONCOR ELECTRIC DELIVERY RATE CHANGE SUSPENSION 2025
SUBJECT
(ALL) Adopt Ordinance Suspending Effective Date of Rate Increase Proposed by Oncor Electric Delivery Company LLC and Authorize Retention
of Consultants to Evaluate the Proposed Rates, and Suspend the Application of Oncor Electric Delivery Company LLC to Increase System Wide
Transmission and Distribution Rates
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached ordinance which 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 June 26, 2025, 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 $834 million in additional revenue per year on a system -wide basis, representing a 13 percent increase over present revenues with an
12.3 percent increase in residential rates and a 51 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 35 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 July 1, 2025, 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 Citv Manaaer's Office bv: Valerie Washington 6199
Oriainatina Business Unit Head: Marilyn Marvin 7708
Additional Information Contact: Juanita Rigsby 8518