R-08-07-10-10A1 - 7/10/2008RESOLUTION NO. R -08-07-10-10A 1
A RESOLUTION OF THE CITY COUNCIL OF ROUND ROCK, TEXAS
AUTHORIZING THE SUSPENSION OF PROPOSED RATES AND THE
INTERVENTION IN THE PUBLIC UTILITY COMMISSION
PROCEEDING INVOLVING THE REQUEST TO INCREASE ELECTRIC
RATES OF ONCOR ELECTRIC DELIVERY COMPANY; AUTHORIZING
PARTICIPATION IN A COALITION OF MUNICIPALITIES KNOWN AS
THE ALLIANCE OF TXU/ONCOR CUSTOMERS ("ATOC"); PROVIDING
FOR THE RETENTION OF EXPERTS; FINDING THAT THE MEETING
COMPLIES WITH THE OPEN MEETINGS ACT; SUCH OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, on June 27, 2008 Oncor Electric Delivery Company
("Oncor") filed a request to increase its transmission and
distribution rates by more than $275 million; and
WHEREAS, under the Public Utility Regulatory Act § 36.108 a
municipality may suspend the effective date for adoption of the
request for a change in rates; and
WHEREAS, in June 2008 four retail electric providers ("REPs")
have gone out of business, forcing thousands of electric customers
to purchase electricity at prices which are unheard of in the United
States; and
WHEREAS, the Oncor rate increase request is being filed at a
time when the Public Utility Commission of Texas is considering
requests for over $5 billion in new transmission projects. A large
portion of the costs for these projects will be borne by customers
located within the municipalities served by Oncor; and
WHEREAS, the general rate increase being requested by Oncor is
in addition to the surcharge being sought for advanced metering
services; and
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WHEREAS, the Oncor rate increase requires the specialized
expertise of lawyers and experts who concentrate on analyzing
utility rate requests; and
WHEREAS, the coalition known as the Alliance of TXU/Oncor
Customers ("ATOC") was active at the Public Utility Commission of
Texas in the Oncor 2007 rate request proceeding and in the
proceeding involving the acquisition of TXU Electric Distribution
Company by Texas Entergy Future Holdings; and
WHEREAS, participation in ATOC will benefit electric customers
within our municipality by helping insure that Oncor rates are just
and reasonable; 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 to this
resolution are in all things approved and adopted.
Section 2. That the City is authorized to join with other
municipalities, public entities and commercial customers in order to
participate in the Alliance of TXU/Oncor Customers ("ATOC"), to form
a steering committee to provide direction and guidance to legal and
consulting experts with regard to the Oncor 2008 General Rate
Request.
Section 4. That the City does hereby suspend the proposed
effective date of Oncor's request for an increase in rates for a
period of 90 days.
Section 3. That the City authorizes the law firm of Herrera
& Boyle, PLLC to act on behalf of the City and ATOC in the Oncor
2008 General Rate Request and related proceedings.
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Section 4. Legal counsel for ATOC is authorized to take
such actions in connection with the Oncor 2008 General Rate Request
as are in the best interest of the customers of Oncor who are
located within the City's municipal boundaries, consistent with the
instructions of the Steering Committee, including any administrative
or judicial proceedings related to Oncor's 2008 General Rate
Request.
The City Council hereby finds and declares that written notice
of the date, hour, place and subject of the meeting at which this
Resolution was adopted was posted and that such meeting was open to
the public as required by law at all times during which this
Resolution and the subject matter hereof were discussed, considered
and formally acted upon, all as required by the Open Meetings Act,
Chapter 551, Texas Government Code, as amended.
RESOLVED this 10th day of July, 2008.
ATTEST:
SARA L. WHITE, City Secretary
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ALAN MCGRAW, Mayor
City of Round Rock, Texas
DATE: July 1, 2008
SUBJECT: City Council Meeting—July 10, 2008
ITEM: 10A1. Consider a resolution authorizing the suspension of the proposed Oncor
rate increase and authorizing the City to participate with the Alliance of
TXU/Oncor Customers ("ATOC") in connection with said rate request.
Department:
Staff Person:
Administration
David Kautz, Assistant City Manager / CFO
Justification:
Oncor has filed a major rate increase request with the cities in its service area. The proposed
rates represent a blended increase of 11%. The specific increase to residential rates is 17% on
average. Staff recommends that the rates be suspended for 90 days and that consultants be
retained to help the City evaluate the assumptions in the rate request.
Funding:
Cost: N/A
Source of funds: N/A
Outside Resources: Jim Boyle
Herrera & Boyle, PLLC
Background Information:
Oncor has filed the rate increase with the City and has provided data regarding new tariff
proposals. The City may approve the request or suspend the increase for 90 days in order to
further review the assumptions and make a determination on how to proceed. By the end of
the suspension period the City either approves or disapproves the increase by an Ordinance. If
the City disapproves, the matter goes to the Public Utility Commission where a full rate hearing
is held.
There is no specific cost to the City. Rate case review has been prefunded in a previous
TXU/Oncor legal proceeding.
Public Comment: N/A