Item Coversheet
  CITY COUNCIL AGENDA MEMO
MEETING DATE: 7/28/2025
DEPARTMENT:Gov Relations
DIRECTOR:Andrew Fortune, Director of Policy & Government Relations
AGENDA ITEM:

Suspension of Oncor Electric Delivery's requested rate change

RECOMMENDED ACTION:Adoption of Resolutions

ITEM SUMMARY

To suspend the July 31, 2025 effective date of Oncor Electric Delivery Company’s requested rate change to permit the City time to study the request and to establish reasonable rates; approving cooperation with the Steering Committee of Cities Served by Oncor to hire legal and consulting services and to negotiate with Oncor and direct any necessary litigation and appeals; 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 Oncor and legal counsel for the Steering Committee of Cities Served by Oncor; and providing an effective date. Adopted Resolution No. 2025-7-2(R)

PREVIOUS ACTION/PRESENTATION

Oncor's last comprehensive base rate increase was in 2022, and the Steering Committee of Cities Served by Oncor assisted in negotiating rates for its member cities. 

BACKGROUND

The City of Plano is a member of a 170-city coalition known as the Steering Committee of Cities Served by Oncor. The Steering Committee has been in existence since the late 1980s. The Steering Committee took on a formal structure in the early 1990s when cities served by the former TXU gave up their statutory right to rate case expense reimbursement in exchange for higher franchise fee payments. Empowered by City Resolutions and funded by per capita assessments, the Steering Committee has been the primary public interest advocate before the Public Utility Commission, the Courts, and the Legislature on electric utility regulation matters for the last 30 years. 

 

Oncor Electric Delivery Company filed an application on or around June 26, 2025 with cities retaining original jurisdiction seeking to increase system-wide transmission and distribution rates by about $834 million or approximately 13% over present revenues. Oncor has asked the City to approve a 12.3% increase in residential rates and a 51.0% increase in street lighting rates. If approved, an average residential customer would see a bill increase of about $7.90 per month. 

 

This Resolution suspends the July 31, 2025 effective date of the Company's rate increase for the maximum period permitted by law to allow the City, working in conjunction with Steering Committee of Cities Served by Oncor, to evaluate the filing, determine whether the filing complies with law, and if lawful, to determine what further strategy, including settlement, to pursue. 

 

The law provides that a rate request made by an electric utility cannot become effective until at least 35 days following the filing of the application to change rates. The law permits the City to suspend the rate change for 90 days after the date the rate change would otherwise be effective. If the City of Plano fails to take action regarding the filing before the effective date, Oncor's rate request is deemed administratively approved.

FINANCIAL SUMMARY/STRATEGIC GOALS

This item has no financial impact. 

 

Approval of this Resolution will support the City's Strategic Plan Critical Success Factor of Excellent, Innovative, and Accountable City Government. 

ATTACHMENTS:
DescriptionUpload DateType
Resolution7/9/2025Resolution