R-2025-281 - 10/23/2025 RESOLUTION NO. R-2025-281
RESOLUTION BY THE CITY OF ROUND ROCK,TEXAS("CITY")
DENYING ONCOR ELECTRIC DELIVERY COMPANY LLC'S
APPLICATION TO INCREASE RATES RELATED TO ONCOR'S
STATEMENT OF INTENT TO INCREASE RATES FILED ON OR
ABOUT JUNE 26,2025; REQUIRING THE REIMBURSEMENT OF
MUNICIPAL RATE CASE EXPENSES; 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 June 26,2025,to increase its revenues;
and
WHEREAS, Oncor's proposed increase in rates would result in an increase of
approximately $833.6 million in its annual revenue, which equates to an overall increase
in revenue of approximately 13.0%; 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
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing and investigating Oncor's rate request and its changes in tariffs the
City coordinated its efforts with a coalition of similarly situated municipalities known as
the Alliance of Oncor Cities ("AOC") and other cities; 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
0112.20252:4912-1575-2561
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WHEREAS, Oncor failed to establish that its proposed return on equity and its
proposed overall rate of return is 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;
(3) directed Oncor to reimburse AOC's rate case expenses; and (4) retained the law firm
of Herrera Law & Associates, PLLC with respect to rate proceedings involving Oncor
before the City, the Public Utility Commission of Texas, and courts of law and to retain
consultants to review Oncor's rate application subject to AOC'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
of DENIAL finds that:
a) Oncor failed in its burden of proof to establish that its requested increase in revenue
or the changes set forth in its tariffs attached to Oncor's Statement of Intent to
increase rates, results in just and reasonable rates;
b) Oncor failed in its burden of proof to establish that adoption of its proposed rate
base,expenses, investment, return on equity,rate of return, and other rate issues as
presented in Oncor's Statement of Intent to increase rates, result in just and
reasonable rates.
Section 4. The City authorizes its continued intervention and full participation,
including settlement negotiations, 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.
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Section 5. 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 continue to do so on a
monthly basis and within 30 days after submission of the AOC's invoices for the AOC's
reasonable costs associated with the City's activities related to this rate review or to related
proceedings involving Oncor before the City, the Public Utility Commission of Texas, or
any court of law.
Section 6. The City, in coordination with the AOC, delegates to the City Manager
and/or the City Attorney, or designee of such office, review of 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 Mr. Matt Henry, Vice President,
General Counsel, Oncor, 1616 Woodall Rodgers Expressway, Dallas, Texas, 75202; Mr.
Robert Schmidt, Regulatory Manager, Oncor/Regulatory Financial, 1616 Woodall
Rodgers Expressway, Dallas, Texas, 75202; and to Mr. Alfred R. Herrera, Herrera Law &
Associates, PLLC, 4400 Medical Pkwy, Austin, Texas 78756.
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.
PASSED AND APPROVED this 23rd day of October, 2025.
CR I MO 1' AN, Mayor
City of Round Rock, Texas
ATT ST:
6S. AGJL
ANN ANKLIN, City Clerk
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