Res 047-2020 Denying ONCOR Rate Increase & Participating in Steering Committee 5/5/2020Resolution No. 47-2020
Resolution of the City of Wichita Falls, Texas finding that Oncor
Electric Delivery Company LLC's application for approval to amend its
distribution cost recovery factor to increase distribution rates within
the City should be denied; authorizing participation with Oncor Cities
Steering Committee; authorizing the hiring of legal counsel and
consulting services; finding that the City's reasonable rate case
expenses shall be reimbursed by the Company; finding that the
meeting at which this resolution is passed is open to the public as
required by law; requiring notice of this resolution to the company and
legal counsel
WHEREAS, the City of Wichita Falls, Texas ("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 Oncor Cities Steering Committee ("OCSC") is 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 in matters before the Public Utility Commission ("Commission") and the courts; and
WHEREAS, on or about April 3, 2020, Oncor filed with the Commission an
Application to Amend its Distribution Cost Recovery Factor ("DCRF"), Commission Docket
No. 50734, seeking to increase distribution rates by $75.9 million annually (an
approximately $0.88 increase to the average residential customer's bill); and
WHEREAS, the City of Wichita Falls will cooperate with OCSC in coordinating their
review of Oncor's DCRF filing with designated attorneys and consultants, prepare a
common response, negotiate with the Company, and direct any necessary litigation, to
resolve issues in the Company's filing; and
WHEREAS, all electric utility customers residing in the City will be impacted by this
ratemaking proceeding if it is granted; and
WHEREAS, working with the OCSC to review the rates charged by Oncor allows
members to accomplish more collectively than each city could do acting alone; and
WHEREAS, OCSC's members and attorneys recommend that members deny
Oncor's DCRF.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
The City is authorized to participate with OCSC in Commission Docket No.
50734.
2. Subject to the right to terminate employment at any time, the City of Wichita
Falls hereby authorizes the hiring of the law firm of Lloyd Gosselink Rochelle & Townsend,
P.C. and consultants to negotiate with the Company, make recommendations to the City
regarding reasonable rates, and to direct any necessary administrative proceedings or
court litigation associated with an appeal Oncor's DCRF application.
3. The rates proposed by Oncor to be recovered through its DCRF charged to
customers located within the City limits, are hereby found to be unreasonable and shall
be denied.
4. The Company shall continue to charge its existing rates to customers within
the City.
5. The City's reasonable rate case expenses shall be reimbursed in full by
Oncor within 30 days of the adoption of this Resolution.
6. It is hereby officially found and determined that the meeting at which this
Resolution is passed is open to the public via Iivestreaming, as authorized by law, and
the public notice of the time, place, and purpose of said meeting was given as required.
7. A copy of this Resolution shall be sent to Tab Urbantke, Attorney for Oncor,
at Hunton Andrews Kurth LLP, 1445 Ross Avenue, Suite 3700, Dallas, Texas 75202, and
to Thomas Brocato, General Counsel to OCSC, at Lloyd Gosselink Rochelle & Townsend,
P.C., P.O. Box 1725, Austin, TX 78767-1725, or tbrocato@lglawfirm.com.
PASSED AND APPROVED this 5t" day of May, 2020.
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney