R-2022-197 - 6/9/2022 RESOLUTION NO. R-2022-197
RESOLUTION BY THE CITY OF ROUND ROCK
SUSPENDING ONCOR ELECTRIC DELIVERY COMPANY LLC'S
PROPOSED EFFECTIVE DATE OF JUNE 17, 2022, FOR NINETY
DAYS IN CONNECTION WITH ONCOR'S STATEMENT OF
INTENT TO INCREASE RATES FILED ON OR ABOUT MAY 13,
2022; REQUIRING THE REIMBURSEMENT OF MUNICIPAL
RATE CASE EXPENSES; AUTHORIZING PARTICIPATION IN
THE COALITION OF SIMILARLY SITUATED CITIES;
AUTHORIZING INTERVENTION AND PARTICIPATION IN
RELATED RATE PROCEEDINGS; 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, Oncor Electric Delivery Company LLC ("Oncor" or "Company")
filed a Statement of Intent with the City on or about May 13,2022,to increase its revenues;
and
WHEREAS, Oncor proposes to implement its proposed increase in rates on or
about June 17, 2022, and
WHEREAS, Oncor's proposed increase in rates would result in an increase of
approximately $251 million in its annual revenue, which equates to an overall increase in
revenue of approximately 4.5%; and
WHEREAS, Oncor asserts that the need for its increase in rates is driven in part
by its investments of approximately $10.2 billion since December 31, 2016, the end of the
test year in its most recent rate case; and
WHEREAS, an evaluation of Oncor's cost to provide electric service presents a
complex series of regulatory issues; and
WHEREAS,for the Residential customer class,Oneor's proposed increase in rates
if approved would result in an increase of approximately 11% to that class; and a decrease
of about 8% to small commercial ratepayers; and
WHEREAS,the Company seeks a Return on Equity (ROE) of 10.30%; and
0112.20222;4892-4454-3794
WHEREAS, Oncor's rate request consists of a voluminous amount of information
including Oncor's rate-filing package, exhibits, schedules, and workpapers; and
WHEREAS, it is not possible for the City to complete its review of Oncor's filing
by June 17, 2022; and
WHEREAS, the City will need an adequate amount of time to investigate and
determine whether Oncor has properly invoked the City's rate-setting jurisdiction, and if
so, ultimately to review and evaluate Oncor's rate application to enable the City to adopt a
final decision as a local regulatory authority with regard to Oncor's requested rate increase;
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
WHEREAS,to the extent Oncor seeks review at the Public Utility Commission of
Texas of the City's final decision regarding Oncor's statement of intent to change rates,
and because Oncor has submitted a statement of intent to the Public Utility Commission of
Texas to increase rates in the environs of the City on the same date it submitted its request
to the City, the decision of the Public Utility Commission of Texas could have an impact
on the rates paid by the City and its citizens, 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.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF ROUND ROCK 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's proposed effective date for its proposed increase in rates is hereby
SUSPENDED for ninety days beyond Oncor's proposed effective date or as may be
amended by agreement or otherwise.
Section 3. The statutory suspension period may be further extended or its Statement of
Intent dismissed if Oncor does not provide adequate data from which the City may make a
reasonable determination of the Company's rate base, expenses, investment, and rate of
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return in the City,or if Oncor does not provide timely,meaningful,and proper public notice
of its request to increase rates and revenue, or if its rate-filing package is otherwise
materially deficient.
Section 4. The City authorizes intervention in proceedings related to Oncor's
Statement of Intent before the Public Utility Commission of Texas and related proceedings
in courts of law and participation in the coalition of cities known as the Alliance of Oncor
Cities.
Section 5. The City hereby orders Oncor to reimburse the Alliance of Oncor Cities'
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 such invoices for reasonable
costs associated with activities related to this rate review or related to proceedings
involving Oncor before the City, the Public Utility Commission of Texas, or any court of
law.
Section 6. 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 7. The City, through its participation in the Alliance of Oncor Cities, shall
review the invoices of the lawyers and rate experts for reasonableness before submitting
the invoices to Oncor for reimbursement.
Section 8. A copy of this resolution shall be sent to Mr. Matt Henry, Vice President,
General Counsel, Oncor, 1616 Woodall Rodgers Expressway, Dallas, Texas, 75202; and
to Mr. Alfred R. Herrera, Herrera Law& Associates, PLLC, 4400 Medical Pkwy, Austin,
Texas 78756.
Section 9. 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 10. This resolution shall become effective from and after its passage.
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RESOLVED this 9th day of June, 2022.
CRAIG RGA
City of Ro ndRo��ayor
exas
ATTEST:
MEAGAN SP KS, City lerk
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