Title
Consider/Discuss/Act on an Ordinance Approving a Settlement Agreement Between Oncor and the Steering Committee of Cities Adopting Adjusted Rate Tariffs
Summary
MEETING DATE: June 7, 2011
DEPARTMENT: City Manager’s Office
CONTACT: Aretha Harvey, Assistant to the City Manager
Mark Houser, City Attorney
RECOMMENDED CITY COUNCIL ACTION:
· Approve settlement agreement ordinance.
ITEM SUMMARY:
· The City, along with approximately 160 other cities served by Oncor Electric Delivery Company LLC (“Oncor” or “Company”), is a member of the Steering Committee of Cities Served by Oncor (“Steering Committee”). On or about January 7, 2011, Oncor filed with the City an application to increase electric rates.
· The Oncor filing sought a $353 million rate increase. The City worked with the Steering Committee to analyze the schedules and evidence offered by Oncor to support its request to increase rates. The Ordinance and attached rate and tariffs are the result of negotiations between the Steering Committee and the Company to resolve issues raised by the Steering Committee and other intervenors during the review and evaluation of the filing. The Ordinance resolves the Company’s filing by authorizing an increase in the Company’s base rate of $136.7 million. The monthly bill impact for the average residential customer will be a $2.35 increase (as opposed to the $5.00 per bill increase as proposed in the Company’s filing).
· The Executive Committee of the Steering Committee and the Steering Committee’s legal counsel recommend that all city members of the Steering Committee adopt the Ordinance implementing the rate change.
· Rates cannot change and the Settlement Agreement with Oncor cannot be implemented without passage of rate ordinances by cities. The purpose of the Ordinance is to approve rate tariffs (“Attachment A” and “Attachment B”) that reflect the negotiated rate changes pursuant to the process and to ratify a Settlement Agreement recommended by ...
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