R-2017-4670 - 8/10/2017 RESOLUTION NO. R-2017-4670
RESOLUTION BY THE CITY OF ROUND ROCK,TEXAS("CITY")
DENYING THE APPLICATION TO INCREASE RATES
SUBMITTED BY ONCOR ELECTRIC DELIVERY COMPANY
LLC ON OR ABOUT MARCH 17, 2017; FINDING THAT THE
MEETING COMPLIES WITH THE OPEN MEETINGS ACT; AND
MAKING OTHER FINDINGS AND PROVISIONS RELATED TO
THE SUBJECT
WHEREAS, Oncor Electric Delivery Company LLC ("Oncor" or "Company")
filed a Statement of Intent with the City on or about March 17,2017 to increase its revenues
by approximately $317 million, which equates to an overall increase of approximately
7.5% in revenue; and
WHEREAS, Oncor proposes to implement its proposed increase in rates on or
about April 21, 2017, and
WHEREAS, on or before April 21, 2017, the City took action to suspend Oncor's
proposed effective date of April 21, 2017 for the statutorily allowed period of ninety (90)
days, to July 20, 2017; and
WHEREAS, Oncor agreed to extend the deadline for final City action from July
20, 2017 to August 19, 2017; and
WHEREAS, Oncor failed to establish that its overall revenue request resulted in
no more than an amount that will permit Oncor a reasonable opportunity to earn a
reasonable return on the utility's invested capital used and useful in providing service to
the public in excess of the utility's reasonable and necessary operating expenses; and
WHEREAS, Oncor failed to establish that its proposed rates were just and
reasonable; and
WHEREAS,the City has previously: 1) suspended Oncor's proposed rate increase
by 90 days; 2) authorized intervention in proceedings related to Oncor's proposed rate
increase as a member of the coalition of cities known as the Alliance of Oncor Cities
("AOC"); 3) directed Oncor to reimburse Oncor's rate case expenses; and 4) retained the
law firm of Ilerrera & Boyle, PLLC with respect to rate proceedings involving Oncor
0112 1704,00382862
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before the Public Utility Commission of Texas and courts of law and to retain consultants
to review Oncor's rate application subject to ADC's approval.
NOW THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF ROUND ROCK, TEXAS THAT:
Section 1. The findings set out in the preamble are in all things approved and
incorporated herein as if fully set forth.
Section 2. Oncor failed to show that its proposed rates are just and reasonable.
Section 3. The City hereby DENIES Oncor's request to increase rates and in support
thereof finds that:
a) The Statement of Intent fails to provide sufficient information to justify the
requested increase in revenue or to justify the changes set forth in the attached
tariffs; and
b) The Statement of Intent fails to provide sufficient information to justify the
adoption of the rate base, expenses, investment, return on equity, and other rate
issues.
Section 4. As a courtesy, a copy of this resolution shall be sent to Mr. Stephen N.
Ragland, Vice President-Regulatory, Oncor, 1616 Woodall Rodgers Expressway, Dallas,
Texas, 75202; and to Mr. Alfred R. Herrera, Herrera & Boyle, PLLC, 816 Congress Ave.,
Suite 1250, Austin, Texas 78701.
Section 5. The meeting at which this resolution was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government
Code, Chapter 551.
Section 6. This resolution shall become effective from and after its passage.
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RESOLVED this 10th day of August, 2017.
CRAIG RGA Mayor
City of Round Ro Texas
ATTEST:
SARA L. WHITE, City Clerk
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