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Item # 6.

Council Meeting

Meeting Date:	04/27/2021
Department:	City Manager

AGENDA CAPTION:

Consider Action on a Resolution Denying Oncor Electric Delivery Company LLC's Application for Approval of a Distribution Cost Recovery Factor.

BACKGROUND:

The purpose of this Resolution is to deny the Distribution Cost Recovery Factor application filed by Oncor Electric Delivery Company LLC (Oncor) on April 8, 2021 which seeks to increase distribution rates by approximately $97.8 million annually. It is standard practice to pass a Resolution as the first step in a process to review Oncor's application and attempt to negotiate with Oncor regarding this proposed increase. The Council approved a similar Resolution on April 28, 2020 in response to an application for a rate increase made by Oncor.

Addison is a member of the Oncor Cities Steering Committee (OCSC). The OCSC is comprised 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. The OCSC will engage with consultants and legal council on behalf of the member cities to resolve issues with Oncor's filing.

The attached Resolution:

Authorizes the Town to participate with the OCSC;
Authorizes the hiring of Lloyd Gosselink and consultants to review the filing, negotiate with Oncor, make recommendations to the Town regarding reasonable rates, and to direct any necessary administrative proceedings or court litigation associated with an appeal of Oncor's DCRF application;
States the rates proposed by Oncor are found to be unreasonable and should be denied;
States that Oncor should continue to charge its existing rates to customers within the Town;
States that Oncor shall reimburse the City for its reasonable rate case expenses;
States that the Resolution was passed at a meeting that was open to the public and that the consideration of the Resolution was properly noted; and,
States to whom a copy of the approved and signed Resolution will be sent.

RECOMMENDATION:

Adminsitration recommends approval.

Attachments
Resolution - Oncor Distribution Cost Recovery Factor Denial