HomeMy WebLinkAboutResolution No. 08-21 Denial of Energy Rate IncreaseRESOLUTION NO. 08-21
A RESOLUTION OF THE CITY OF UNIVERSITY PARK,
TEXAS FINDING THAT ONCOR ELECTRIC COMPANY'S
REQUESTED INCREASES TO ITS ELECTRIC
TRANSMISSION AND DISTRIBUTION RATES AND
CHARGES 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.
WHEREAS, pursuant to § 33.001 of the Public Utility Regulatory Act ("PURA"), the
City has exclusive original jurisdiction over the electric rates, operations, and services provided
within city limits;
WHEREAS, on or about June 27, 2008, Oncor Electric Delivery Company ("Oncor" or
"Company"), pursuant to PURA §§ 33.001 and 36.001 filed with the City of University Park,
Texas ("City") a Statement of Intent to increase electric transmission and delivery rates by $275
million on a system-wide basis within its service area effective August 8, 2008; and
WHEREAS, pursuant to PURA § 36.108, the City lawfully suspended the August 8,
2008, effective date by resolution to provide time to study the reasonableness of the Company's
application to increase rates; and
WHEREAS, the City is a member of the Oncor Cities Steering Committee (Steering
Committee) and has cooperated with 145 similarly situated city members to conduct a review of
the Company's application, to hire and direct legal counsel and consultants, to prepare a common
response to the filing, to negotiate with the Company and to direct any necessary litigation
appealing final city action; and
WHEREAS, the City, in a reasonably noticed meeting that was open to the public,
considered the Company's application; and
WHEREAS, the consultants who were retained by the Steering Committee to evaluate
the merits of the Company's application have determined that the Company's requested $275
million increase in revenues for its transmission and distribution system is not supported by
evidence;and
WHEREAS, PURA § 33.023 provides that reasonable costs incurred by cities in
ratemaking activities are to be reimbursed by the regulated utility.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF UNIVERSITY PARK, TEXAS:
l. That the rates proposed by Oncor Electric Delivery Company, to be recovered
through its electric transmission and distribution rates charged to customers located within the
City limits, are hereby found to be unreasonable and shall be denied.
2. That the Company shall continue to charge its existing rates for transmission and
distribution services to customers within the City.
That the City's reasonable rate case expenses shall be reimbursed by Oncor.
4. That it is hereby officially found and determined that the meeting at which this
Resolution is passed is open to the public as required by law and the public notice of the time,
place, and purpose of said meeting was given as required.
5. A copy of this Resolution shall be sent to Oncor, care of Debra Anderson, Oncor
Electric Delivery Company, 1601 Bryan St., Suite 23-OSSC, Dallas, Texas 75201 and to
Geoffrey Gay, General Counsel to the Oncor Cities Steering Committee, at Lloyd Gosselink
Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725.
PASSED AND APPROVED, this the 21St day of October, 2008.
APPROVED:
ATTEST:
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S H. HOLMES, III BRANDY VOG
YOR ACTING CITY SECRETARY