R-2019-0213 - 5/23/2019RESOLUTION NO. R-2019-0213
RESOLUTION BY THE CITY OF ROUND ROCK, TEXAS
("CITY") DENYING THE DISTRIBUTION COST RECOVERY
FACTOR RATE REQUEST OF ONCOR ELECTRIC DELIVERY
COMPANY LLC MADE ON OR ABOUT APRIL 8, 2019;
AUTHORIZING PARTICIPATION IN A COALITION OF
SIMILARLY SITUATED CITIES; AUTHORIZING
PARTICIPATION IN RELATED RATE PROCEEDINGS;
REQUIRING THE REIMBURSEMENT OF MUNICIPAL RATE
CASE EXPENSES; AUTHORIZING THE RETENTION OF
SPECIAL COUNSEL; FINDING THAT THE MEETING
COMPLIES WITH THE OPEN MEETINGS ACT; MAKING
OTHER FINDINGS AND PROVISIONS RELATED TO THE
SUBJECT; AND DECLARING AN EFFECTIVE DATE
WHEREAS, on about April 8, 2019, Oncor Electric Delivery Company, LLC
("Oncor") filed an application for approval to amend its Distribution Cost Recovery
Factor ("DCRF") with the City that will increase Oncor's rates effective September 1,
2019; and
WHEREAS, the City is a regulatory authority under the Public Utility Regulatory
Act ("PURA") and under Chapter 33, §33.001 et seq. of PURA has exclusive original
jurisdiction over Oncor's rates, operations, and services within the municipality, and
specifically over its requested amendment to its DCRF under Chapter 36, §36.210; and
WHEREAS, Oncor seeks to include in rates its investment in distribution capital
it has made from January 1, 2017 through December 31, 2018; and
WHEREAS, the inclusion of Oncor's investment in distribution capital in rates,
has the effect of increasing Oncor's revenue requirement by approximately $29 million;
and
WHEREAS, the jurisdictional deadline for the City to act in this rate matter is 60
days from the application date, or June 7, 2019; and
WHEREAS, the City will require the assistance of specialized legal counsel and
rate experts to review the merits of Oncor's application to increase rates; and
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WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing and investigating Oncor's rate request, it is prudent to coordinate
the City's efforts with a coalition of similarly situated municipalities; and
WHEREAS, the City, in matters regarding applications by Oncor to change rates,
has in the past joined with other local regulatory authorities to form the Alliance of Oncor
Cities ("AOC") and hereby continues its participation in AOC; and
WHEREAS, Oncor simultaneously filed an application for approval of a DCRF
with the Public Utility Commission of Texas, and therefore the decision of the Public
Utility Commission of Texas will have an impact on the rates paid by the City and its
citizens who are customers in Oncor's service territory, and in order for the City's
participation to be meaningful, it is important that the City promptly intervene in such
proceeding at the Public Utility Commission of Texas; and
WHEREAS, Oncor failed to show that its proposed rate change in rates is
reasonable and therefore the City has concluded that Oncor's proposed rate change is
unreasonable; and
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. The City DENIES the rate change Oncor requested on or about April 8,
2019.
Section 3. The City authorizes intervention in proceedings related to Oncor's
application for approval of its DCRF before the Public Utility Commission of Texas and
related proceedings in courts of law as part of the coalition of cities known as the
Alliance of Oncor Cities ("AOC").
Section 4. The City hereby orders Oncor to reimburse the City's rate case expenses
as provided in the Public Utility Regulatory Act and that Oncor shall do so on a monthly
basis and within 30 days after submission of the City's invoices for the City's reasonable
costs associated with the City's activities related to this rate review or to related
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proceedings involving Oncor before the City, the Public Utility Commission of Texas, or
any court of law.
Section 5. Subject to the right to terminate employment at any time, the City retains
and authorizes the law firm of Herrera Law & Associates, PLLC to act as Special
Counsel with regard to rate proceedings involving Oncor before the City, the Public
Utility Commission of Texas, or any court of law and to retain such experts as may be
reasonably necessary for review of Oncor's rate application subject to approval by the
City.
Section 6. The City, through its participation in AOC, shall review the invoices of the
lawyers and rate experts for reasonableness before submitting the invoices to Oncor for
reimbursement.
Section 7. A copy of this resolution shall be sent to Oncor Electric Delivery
Company, LLC, care of Mr. J. Michael Sherburne, Oncor Electric Delivery Company,
LLC, 1616 Woodall Rodgers Freeway, Dallas, Texas 75202; and to Mr. Alfred R.
Herrera, Herrera Law & Associates, PLLC, 816 Congress Ave., Suite 950, Austin, Texas
78701.
Section 8. 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 9. This resolution supersedes any prior inconsistent or conflicting resolution
or ordinance.
Section 10. This resolution shall become effective from and after its passage.
RESOLVED this 23rd day of May, 2019.
ATTEST:
gwAt' - 6 4x
SARA L. WHITE, City Clerk
CRAIG ORGAV Mayor
City of ound R a, Texas
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