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Item # 3.b.

City Council

Meeting Date:	07/25/2023
Department:	Information Technology

AGENDA CAPTION:

Consider action on a Resolution denying Oncor's rate increase.

BACKGROUND:

The purpose of this Resolution is to deny a rate increase filed by Oncor Electric Delivery Company, LLC (“Oncor” or “Company”) on June 30, 2023. Oncor filed an Application to Amend its Distribution Cost Recovery Factor (“DCRF”) and update its Mobile Generation Riders to increase distribution rates within each of the cities in its service area. In the filing, the Company asserts it is seeking an increase in distribution revenues of approximately $152.78 million. The Company is also seeking to update its Rider Mobile Generation and Rider Wholesale Mobile Generation to recover revenue related to mobile generation unit leasing and operation. The Rider would recover approximately $1.07 million.

The Resolution authorizes the Town of Addison to join with the Steering Committee of Cities Served by Oncor (“OCSC”) to evaluate the filing, determine whether the filing complies with law, and if lawful, to determine what further strategy, including settlement, to pursue. The Town has passed similar Resolutions in response to prior Oncor rate filings as a first step in negotiating a possible settlement.

The attached Resolution:

Authorizes the Town to participate with OCSC as a party in the Company’s DCRF filing, PUC Docket No. 55190.
Authorizes the hiring of Lloyd Gosselink and consultants to review the filing, negotiate with the Company, and make recommendations to the Town regarding reasonable rates. Additionally, it authorizes cities to direct any necessary administrative proceedings or court litigation associated with an appeal of this application filed with the PUC.
Asserts that the Company’s application is unreasonable and should be denied.
States that the Company’s current rates shall not be changed.
States the Company will reimburse the cities for their reasonable rate case expenses. Legal counsel and consultants approved by cities will submit monthly invoices that will be forwarded to Oncor for reimbursement.
States that the Resolution was passed at a meeting that was open to the public and that the consideration of the Resolution was properly noticed.
Provides that Oncor and counsel for OCSC will be notified of the Town’s action by sending a copy of the approved and signed Resolution to counsel.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - Oncor Denial 2023