Item Coversheet
  CITY COUNCIL AGENDA MEMO
MEETING DATE: 7/24/2023
DEPARTMENT:Gov Relations
DIRECTOR:Andrew Fortune, Director of Policy & Government Relations
AGENDA ITEM:To find that Oncor's application for approval to amend its Distribution Cost Recovery Factor to increase distribution rates within the City should be denied, and authorizing participation with the Steering Committee of Cities Served by Oncor in coordinating their review of Oncor's DCRF filing with designating attorneys and consultants, preparing a common response, negotiate with Oncor, and direct any necessary litigation to resolve issues in Oncor's DCRF filing. 
RECOMMENDED ACTION:Adoption of Resolutions

ITEM SUMMARY

To find that Oncor Electric Delivery Company LLC’s application to amend its Distribution Cost Recovery Factor and Update Generation Riders to increase distribution rates within the City should be denied; authorizing participation with the Steering Committee of Cities Served by Oncor; authorizing hiring of legal counsel and consultants; finding that the Citys reasonable rate case expenses shall be reimbursed by Oncor; 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 City's legal counsel; and providing an effective date. Adopted Resolution No. 2023-7-1(R)

 

 

PREVIOUS ACTION/PRESENTATION

A Resolution denying Oncor's Distribution Cost Recovery Factor (DCRF) was passed in 2021. 

BACKGROUND

The City is an electric utility customer of Oncor Electric Delivery Company LLC. The Steering Committee of Cities Served by Oncor (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 (PUC) and the courts. 

 

On or about June 29, 2023, Oncor Electric Delivery Company, LLC filed an Application to Amend its DCRF and Update Mobile Generation Riders to increase distribution rates within each of the cities in its service area.  In the filing, Oncor 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.

This Resolution authorizes the City of Plano to join with the OCSC to evaluate the filing, determine whether the filing complies with the law, and if lawful, to determine what further strategy, including settlement, to pursue. 

FINANCIAL SUMMARY/STRATEGIC GOALS

This item has no financial impact. 

 

Approval of this Resolution denying Oncor's request to increase rates supports the City's Strategic Plan Critical Success Factor of Excellent, Innovative, and Accountable City Government. 

ATTACHMENTS:
DescriptionUpload DateType
Resolution7/13/2023Resolution