Agenda Information Sheet
DEPARTMENT: Legal Department
CM/ ACM: John Knight, Deputy City Attorney
Date: April 4, 2017
SUBJECT
Title
Consider approval of a resolution by the City of Denton ("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.
Body
BACKGROUND: On or about March 17, 2017, Oncor Electric Delivery Company LLC ("Oncor" or "Company") filed a Statement of Intent to increase its revenues by approximately $317 million, which equates to a net increase of approximately 7.5% in Oncor's overall revenue. Oncor proposes to implement its proposed increase in rates effective April 21, 2017.
The City must take action on Oncor's application by no later than April 21, 2017. Failure to take action by April 21, 2017 will result in Oncor's proposed rates being deemed approved by operation of law.
Oncor's application poses complex regulatory issues that require time to evaluate the merits of Oncor's increase in rates.
Table 1 below shows the impact Oncor's proposed increase in rates would have on a customer-class basis.
TABLE 2
Rate Class
Present
Revenues
Change
Proposed
Revenues
Change Pct
(a)
(b)
(c)
(d)
Residential
$1,572,143,564
$184,837,628
$1,756,981,191
11.8%
Secondary <= 10 kW
$77,130,463
$8,589,904
$85,720,368
11.1%
Secondary > 10 kW
$1,226,692,597
$84,090,341
$1,310,782,938
6.9%
Primary DL <= 10 kW
$796,390
$328,609
$1,124,999
41.3%
Primary > 10 kW Dist. Line
$171,308,581
$23,673,821
$194,982,402
...
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