To: Mark R. Hafner, City Manager
From: Sarah Hensley, Management Assistant
Subject:
Title
Consider a resolution of the City of Keller, Texas, finding that Oncor Electric Delivery Company LLC’s application for approval of a Distribution Cost Recovery Factor pursuant to 16 Tex. Admin. Code § 25.243 to increase distribution 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.
Action Requested:
City Council consideration of a resolution denying the April 5, 2018 Oncor Electric Delivery Company’s Application for Approval of a Distribution Cost Recovery Factor (“DCRF”) to increase distribution rates within the City of Keller.
Background:
The City of Keller, along with approximately 156 other cities, is a member of a coalition known as the Steering Committee of Cities Served by Oncor (“Steering Committee”).
The proposed resolution authorizes the City of Keller to join with the Steering Committee to evaluate the filing, determine whether the filing complies with law, and if lawful, to determine what further strategy, including settlement, to pursue. The application filed by Oncor asserts that it is seeking an increase in distribution revenues of $19,002,177.
Budget Impact:
None.
Financial Considerations:
Reasonable rate case expenses are reimbursed to the Steering Committee by the Company. No individual municipality incurs liability for payment of rate case expenses by adopting the suspension resolution.
Citizen Input/Board Review:
Not applicable.
Legal Review:
Proposed Resolution has been reviewed and submitted by the Oncor Cities Steering Committee (OCSC) general counsel at Lloyd Gosselink Rochell & Townsend. The proposed Resolution has been reviewed by the City Attorney’s office.
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial
Council Action:
Staff recommends approval of the resolution as presented.