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Item # 8.

Council Meeting

Meeting Date:	05/16/2022
Department:	City Manager
Milestones:	Promote and protect the Addison Way

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 that is expected to be filed by Oncor Electric Delivery Company LLC (Oncor) on May 13, 2022 which will seek to increase distribution rates. 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 27, 2021 in response to an application for a rate increase made by Oncor.

Due to there only being one Council meeting (May 16, 2022) scheduled between the anticipated filing and a deadline to pass a resolution in opposition, we are posting this item without the proposed resolution. We cannot develop the resolution until Oncor makes their filing. Since Oncor's anticipated filing date is after our deadline to post the May 16 Council Agenda, the resolution will be provided at the meeting. It is anticipated that the resolution will be nearly identical to the one passed by Council in 2021 with updates being made to the filing date, amount sought, and docket number. The 2021 resolution (R21-02) is being attached for reference purposes.

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 proposed resolution will:

Authorize the Town to participate with the OCSC;
Authorize 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;
State the rates proposed by Oncor are found to be unreasonable and should be denied;
State that Oncor should continue to charge its existing rates to customers within the Town;
State that Oncor shall reimburse the City for its reasonable rate case expenses;
State 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,
State to whom a copy of the approved and signed Resolution will be sent.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution R21-02 - Oncor Distribution Cost Recovery Factor Denial