R-08-10-09-8C1 - 10/9/2008RESOLUTION NO. R -08-10-09-8C1
A RESOLUTION OF THE CITY OF ROUND ROCK, TEXAS ("CITY")
DENYING THE RATE INCREASE PROPOSED BY ONCOR ELECTRIC
DELIVERY COMPANY, LLC ("ONCOR"); FINDING THAT THE
MEETING COMPLIED WITH THE OPEN MEETINGS ACT.
WHEREAS, Oncor filed an application with the City Secretary on
June 27, 2008 for an increase in rates of $275 million; and
WHEREAS, the City has suspended the effective date until
October 30, 2008; and
WHEREAS, the City has joined with a coalition of cities known
as the Alliance of TXU/Oncor Customers ("ATOC"); and
WHEREAS, the application to increase rates by Oncor
("Statement of Intent") has a been filed at the Public Utility
Commission of Texas ("PUC"); and
WHEREAS, the date for filing ATOC's testimony has been set by
the PUC for November 26, 2008; and
WHEREAS, the experts hired by ATOC have not finished their
review of the thousands of pages of responses to discovery; and
WHEREAS, it is necessary for the City to act before October
31, 2008 on Oncor's rate request; and
WHEREAS, the experts hired by ATOC have preliminarily
concluded that the size of the rate increase is not justified; and
WHEREAS, based upon the preliminary review of the City's and
ATOC's experts the requested rate increase should be denied; Now
therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS THAT:
O:\WDOX\RESOLOTI\R61009C1.DOC/rmc
Section 1. The findings set out in the preamble to this
resolution are in all things approved and adopted.
Section 2. 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 rates or
to justify the changes set forth in the attached tariffs;
b) As a preliminary matter, the requested increases for
depreciation, storm reserve, and pensions appears
excessive.
Section 3. The City Secretary shall notify Oncor by sending
copy of this resolution to Don J. Clevenger, Oncor Electric Delivery
Company LLC, 1601 Bryan Street, Suite 22-070, Dallas, Texas 75201-
3411 and ATOC shall be notified by sending a copy to Jim Boyle,
Herrera & Boyle, PLLC, Suite 1250, 816 Congress Avenue, Austin,
Texas 78701.
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 9th day of October, 2008.
ATTEST:
SARA L. WHITE, City Secretary
2
ALAN MCGRAW, Mayor
City of Round Rock, Texas
DATE: October 1, 2008
SUBJECT: City Council Meeting — October 9, 2008
ITEM: 8C1. Consider a resolution authorizing the denial of the Oncor Electric Delivery
Company rate increase.
Department:
Staff Person:
Justification:
Administration
David Kautz, Assistant City Manager/CFO
On July 10, 2008 the City Council voted to suspend Oncor's rate increase request.
The City is a member of the Alliance of TXU/Oncor ("ATOC"). The Alliance consists of twenty-
one municipalities who have joined together to hire experts and analyze Oncor's requested
increase in rates.
RECOMMENDATION:
There are three principal reasons given by Oncor for filing the request to increase rates, they
are: (1) increase depreciation rates; (2) larger storm reserve; and (3) larger pension reserve.
ATOC's experts will not be ready in October to finalize their testimony. However, they are
certain that the requested increase in rates is excessive. Based upon this recommendation,
ATOC recommends that the City deny Oncor's request to increase rates.
Funding:
Cost: N/A
Source of Funds: N/A
Outside Resources: N/A
Background Information:
On June 27, 2008 Oncor Electric Delivery Company ("Oncor") filed a request to increase its
transmission and distribution rates by a total of $275 million. The original effective date of
August 1, 2008 was suspended until October 30, 2008. The City must act on the rate request by
that date or the requested rates go into effect by operation of law. Oncor also filed the same
request to increase rates at the Public Utility Commission of Texas ("PUC"). Testimony must be
filed by ATOC at the PUC on November 26, 2008.
Public Comment: N/A