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Item # 7.

Council Meeting 2023

Meeting Date:	10/11/2022
Department:	City Manager
Milestones:	Promote and protect the Addison Way

AGENDA CAPTION:

Consider Action on a Resolution Finding that Oncor Electric Delivery Company LLC's Application to Change Rates Within the Town Should be Denied and Finding that the Town's Reasonable Rate Case Expenses Shall be Reimbursed by Oncor.

BACKGROUND:

On May 13, 2022, 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 $251 million or approximately 4.5% over present revenues. The Company asks the Town to approve an 11.2% increase in residential rates and a 1.6% increase in street lighting rates. The impact of this requested increase on an average residential customer using 1,300 kWh/month would be about $6.02 per month.

On May 16, 2022, the Council passed a Resolution regarding Oncor's filing. It is standard practice to pass a resolution to allow time to review Oncor's filing and consider next steps. The Town, through its participation with the Steering Committee of Cities Served by Oncor (“Steering Committee”), has determined 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. The purpose of the resolution proposed in this agenda item is to deny the rate change application proposed by Oncor. Once the Resolution is adopted, Oncor will have 30 days to appeal the decision to the Public Utility Commission of Texas where the appeal will be consolidated with Oncor’s filing (i.e. PUC Docket No. 53601) currently pending at the Commission.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - Oncor Denial October 2022