R-2017-4338 - 4/13/2017 RESOLUTION NO. R-2017-4338
RESOLUTION BY THE CITY OF ROUND ROCK,TEXAS("CITY")
SUSPENDING THE EFFECTIVE DATE FOR NINETY DAYS IN
CONNECTION WITH THE RATE INCREASE FILING OF ONCOR
ELECTRIC DELIVERY COMPANY LLC ON OR ABOUT MARCH
17, 2017; 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 March 17, 2017 to increase its
revenues; and
WHEREAS, Oncor proposes to implement its proposed increase in rates on or
about April 21, 2017; and
WHEREAS, Oncor's proposed increase in rates would result in an increase to its
revenues of approximately $317 million, which equates to an overall increase of
approximately 7.5% in revenue; and
WHEREAS, Oncor asserts that the need for its increase in rates is driven in part
by its investments of approximately $7.9 billion since June 30, 3010, the end of the test
year in its most recent rate case; and
WHEREAS, an evaluation of Oncor's cost of to provide electric service presents
a complex series of regulatory issues; and
WHEREAS, for a Residential customer class as a whole, Oncor's proposed
increase in rates if approved would result in an increase of almost 12% to that class; and
an increase of about 11% to small commercial ratepayers; and
WHEREAS, the Company seeks a Return on Equity (ROE) of 10.25%; and
0112.1704;00375416
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 April 21, 2017; 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, or
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 who are customers of Oncor 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, 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'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 Alliance of Oncor
Cities.
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 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 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 & Boyle, 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 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. Stephen N. Ragland, Vice
President-Regulatory, Oncor, 1616 Woodall Rodgers Expressway, Dallas, Texas, 75202;
and to Mr. Alfred R. Herrera, Herrera & Boyle, PLLC, 816 Congress Ave., Suite 1250,
Austin, Texas 78701.
Section 9. This resolution shall become effective from and after its passage.
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
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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 13th day of April, 2017.
ALAN MCGRAW, Mayor
City of Round Rock, Texas
ATTEST:
SARA L. WHITE, City Clerk
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