Ord 30-2011 6/7/2011ORDINANCE NO. 30 -2011
Ordinance Of The City Council Of The City Of Wichita Falls, Texas,
( "City ") Approving A Negotiated Resolution Between The Steering
Committee Of Cities Served By Oncor ( "Steering Committee ") And
Oncor Electric Delivery Company LLC ( "Oncor" Or "Company ")
Regarding The Company's Application To Increase Electric Rates In
All Cities Exercising Original Jurisdiction; Declaring Existing Rates
To Be Unreasonable; Requiring The Company To Reimburse Cities'
Reasonable Ratemaking Expenses; Adopting Tariffs That Reflect
Rate Adjustments Consistent With The Negotiated Settlement And
Finding The Rates To Be Set By The Attached Tariffs To Be Just And
Reasonable; Approving Oncor's Proof Of Revenues; Adopting A
Savings Clause; Determining That This Ordinance Was Passed In
Accordance With The Requirements Of The Texas Open Meetings
Act; Declaring An Effective Date; And Requiring Delivery Of This
Ordinance To The Company And The Steering Committee's 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 City is a member of the Steering Committee of Cities Served by
Oncor ( "Steering Committee "), a coalition of approximately 160 similarly situated cities
served by Oncor that have joined together to facilitate the review of and response to
electric issues affecting rates charged in the Oncor service area; and
WHEREAS, on or about January 7, 2011, Oncor filed with the City its application
to increase electric base rates by approximately $353 million, such increase to be
effective in every municipality within Oncor's service territory; and
WHEREAS, the Steering Committee coordinated their review of Oncor's filing by
designating an Executive Committee made up of Steering Committee representatives,
assisted by Steering Committee attorneys and consultants, to resolve issues identified
by the Steering Committee in the Company's filing; and
WHEREAS, the Company has filed evidence that existing rates are
unreasonable and should be changed; and
WHEREAS, independent analysis by the Steering Committee's rate experts
concluded that Oncor is able to justify an increase over current rates of $136.7 million;
and
t
WHEREAS, the Steering Committee has entered a Settlement Agreement
( "Attachment C ") with Oncor to increase base rate revenues by $136.7 million; and
WHEREAS, the Executive Committee of the Steering Committee, and the
Steering Committee's lawyers and consultants recommend that Steering Committee
members approve the attached rate tariffs ( "Attachment K and "Attachment B" to this
Ordinance), which will increase the Company's revenue requirement by $136.7 million;
and
WHEREAS, the attached tariffs implementing new rates are consistent with the
negotiated resolution reached by the Steering Committee and are just, reasonable, and
in the public interest; and
WHEREAS, it is the intention of the parties that if the City determines any rates,
revenues, terms and conditions, or benefits resulting from a Final Order or subsequent
negotiated settlement approved in any proceeding addressing the issues raised in the
Company's filing would be more beneficial to the City than the terms of the attached
tariff, then the more favorable rates, revenues, terms and conditions, or benefits shall
additionally accrue to the City; and
WHEREAS, the negotiated resolution of the Company's filing and the resulting
rates are, as a whole, in the public interest.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
1. The findings set forth in this Ordinance are hereby in all things approved.
2. The City Council finds the existing rates for electric service provided by Oncor
are unreasonable and new tariffs, which are attached hereto and incorporated herein as
Attachments A and B, are just and reasonable and are hereby adopted.
3. Oncor shall reimburse the reasonable ratemaking expenses of the Steering
Committee in processing the Company's rate application.
4. To the extent any resolution or ordinance previously adopted by the Council is
inconsistent with this Ordinance, it is hereby repealed.
5. The meeting at which this Ordinance was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government
Code, Chapter 551.
6. If any one or more sections or clauses of this Ordinance is adjudged to be
unconstitutional or invalid, such judgment shall not affect, impair or invalidate the
remaining provisions of this Ordinance and the remaining provisions of the Ordinance
shall be interpreted as if the offending section or clause never existed.
7. If the City determines any rates, revenues, terms and conditions, or benefits
resulting from a Final Order or subsequent negotiated settlement approved in any
proceeding addressing the issues raised in the Company's filing would be more
beneficial to the City than the terms of the attached tariffs, then the more favorable
rates, revenues, terms and conditions, or benefits shall additionally accrue to the City.
8. This Ordinance and Settlement Agreement ( "Attachment C ") shall become
effective from and after its passage with rates authorized by attached Tariffs to be
effective in two phases. Phase one tariffs (attached to this Ordinance as "Attachment
A "), increasing Oncor's revenues by $93.7 million, are effective for bills rendered on or
after July 1, 2011. Phase two tariffs (attached to this Ordinance as "Attachment B "),
increasing Oncor's revenues by $43 million, are effective for bills rendered on or after
January 1, 2012.
9. A copy of this Ordinance shall be sent to Oncor, care of Autry Warren, Oncor
Electric Delivery Company, LLC, 1601 Bryan St., 23`d Floor, Dallas, Texas 75201 and to
Thomas Brocato, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725,
Austin, Texas 78767 -1725.
PASSED AND APPROVED this 7th day of Aine, 2011.
C.
ATTEST: Mayor
C y Clerk
APPROVED AS TO FORM:
City Attorney
Attachment A
effective for bills rendered on or after July 1, 2011
Full copy available for public viewing in City Clerk's Office
Attachment B
effective for bills rendered on or after January 1, 2012
Full copy available for public viewing in City Clerk's Office
Attachment C
Settlement Agreement
Full copy available for public viewing in City Clerk's Office