HomeMy WebLinkAbout28050-10-2025 - City Council - OrdinanceORDINANCE NO. 28050-10-2025
AN ORDINANCE OF THE CITY OF FORT WORTH
FINDING THAT ONCOR ELECTRIC DELIVERY
COMPANY LLC' S 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 ("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 June 26, 2025, Oncor filed with the City an application to
increase system -wide transmission and distribution rates by about $834 million or approximately
13% over present revenues. The Company asks the City to approve a 12.3% increase in
residential rates and a 51.0% increase in street lighting 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 THAT:
Section 1. The rates proposed by Oncor to be recovered through its electric rates
charged to customers located within the City limits, are found to be unreasonable and shall be
denied.
Section 2. The Company shall continue to charge its existing rates to customers within
the City.
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Section 3. The City's reasonable rate case expenses shall be reimbursed in full by
Oncor.
Section 4. 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. That 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., 816 Congress
Ave., Suite 1900, Austin, Texas 78701.
M.
PASSED AND APPROVED THIS 21ST DAY OF OCTOBER, 2025.
APPROVED AS FORM AND LEGALITY:
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Larry Collister, Sr. Asst. City Attorney
ATTEST:
By:
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Jannette S. Goodall, City Secretary
Adopted:October 21, 2025 Effective: October 21, 2025
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 10/21/25 M&C FILE NUMBER: M&C 25-0983
LOG NAME: 21 ONCOR ELECTRIC DELIVERY RATE CHANGE DENIAL 2025
SUBJECT
(ALL) Adopt Ordinance Denying the Proposed Rate Change Application by Oncor Electric Delivery Company LLC
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance denying the rate change application proposed by Oncor Electric Delivery
Company LLC.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to adopt the attached ordinance denying the rate change application proposed
by Oncor Electric Delivery Company LLC and finding that such increase is unreasonable and excessive.
On June 26, 2025, 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 $834 million or approximately 13 percent over present revenues. Oncor has
requested the City to approve a 12.3 percent increase in residential rates and a 51 percent increase in street lighting rates. If approved, the impact
of this requested increase on an average residential customer would be about $7.90 per month.
On August 12, 2025, the City took action (M&C 25-0699) to suspend Oncor's rate request from taking effect for 90 days, the fullest extent
permissible under the law. This 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.
Accordingly, the purpose of the Ordinance is to 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 (PUC) where the appeal will be consolidated with Oncor's filing
(PUC Docket No. 58306) currently pending at the PUC.
The City of Fort Worth retains original jurisdiction over the rates, operations, and services of Oncor within its city limits and must take action to
deny the proposed rate increase by October 29, 2025.
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 Citv Manaaer's Office bv: Valerie Washington 6199
Oriainatina Business Unit Head: Marilyn Marvin 7708
Additional Information Contact: Juanita Rigsby 8518