Item Coversheet
  CITY COUNCIL AGENDA MEMO
MEETING DATE: 10/13/2025
DEPARTMENT:Gov Relations
DIRECTOR:Andrew Fortune, Director of Policy & Government Relations
AGENDA ITEM:Denial of Oncor Application to Change Rates
RECOMMENDED ACTION:Items for Individual Consideration

ITEM SUMMARY

Consideration of a Resolution to find that Oncor Electric Delivery Company LLC’s application to change rates within the City should be denied; 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 for the Steering Committee of Cities Served by Oncor; and providing an effective date. Adopted Resolution No. 2025-10-7(R)

PREVIOUS ACTION/PRESENTATION

A Resolution suspending Oncor's July 31, 2025 effective date to change rates to allow cooperation with the Steering Committee of Cities Served by Oncor to review Oncor's application was passed at the July 28, 2025 City Council meeting. 

BACKGROUND

Plano is an electric utility customer of Oncor Electric Delivery Company LLC. On June 26, 2025, Oncor filed an application 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 asked cities to approve a 12.3% increase in residential rates, and a 51% increase in street lighting rates. If approved, the impact of this requested increase on an average residential customer would be around $7.90 a month.

 

In a prior action by the City of Plano, Oncor's rate request was suspended from taking effect for 90 days, which is the fullest extent permissible under the law. This time period has permitted Plano, through its participation with the Steering Committee of Cities Served by Oncor, to determine 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 this Resolution 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 (PUC Docket No. 58306) currently pending at the PUC.

 

All cities with original jurisdiction will need to adopt the Resolution denying the rate change application by Oncor by October 29, 2025.

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
Resolution10/1/2025Resolution