HomeMy WebLinkAboutOrdinance No. 11/09 Approve Oncor Electric Rate
ORDINANCE NO. 11/09
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF UNIVERSITY PARK, 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
RA TEMAKING EXPENSES; ADOPTING T ARIFFS 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 University Park, 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
Oncor 2011 Rate Increase Ordinance
WHEREAS, the Steering Committee coordinated their reVlew 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
WHEREAS, the Steering Committee has entered a Settlement Agreement with On cor 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 A" 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
Oncor 2011 Rate Increase Ordinance
2
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 UNIVERSITY PARK, TEXAS:
Section 1. That the findings set forth in this Ordinance are hereby in all things approved.
Section 2. That 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
Attachment A, are just and reasonable and are hereby adopted.
Section 3. That On cor shall reimburse the reasonable ratemaking expenses of the
Steering Committee in processing the Company's rate application.
Section 4. That to the extent any resolution or ordinance previously adopted by the
Council is inconsistent with this Ordinance, it is hereby repealed.
Section 5. That 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.
Section 7. That if anyone 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.
Section 8. 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
Oncor 2011 Rate Increase Ordinance
3
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.
Section 9. That this Ordinance 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.
Section 10. That a copy of this Ordinance shall be sent to Oncor, care of Autry Warren,
Oncor Electric Delivery Company, LLC, 1601 Bryan St., 23rd 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 June, 2011.
U/b~.
W. Richard Davis, Mayor
ATTEST:
~m~
Robert L. Dillard, III, City Attorney
Oncor 2011 Rate Increase Ordinance
4