TITLE
Consider/Discuss/Act on a Resolution of the City of McKinney, Texas, finding that ONCOR Electric Delivery Company LLC’s Application to Change Rates within the City Should be Denied; finding that the City’s Reasonable Rate Case Expenses Shall be Reimbursed by the Company; finding that the Meeting at which this Resolution is Passed is Open to the Public as Required by Law; requiring Notice of this Resolution to the Company and Legal Counsel
SUMMARY
COUNCIL GOAL: Financially Sound Government
MEETING DATE: October 21st, 2025
CONTACT: Trevor Minyard, Assistant City Manager
Emily Ann Brier, ICMA Management Fellow
RECOMMENDED CITY COUNCIL ACTION: Approval of the resolution.
ITEM SUMMARY: McKinney is a member of a 170-city coalition known as the Steering Committee of Cities Served by Oncor ("Steering Committee"). The Steering Committee has been in existence since the late 1980s. It took on a formal structure in the early 1990s when cities served by the former TXU gave up their statutory right to rate case expense reimbursement in exchange for higher franchise fee payments. Empowered by city resolutions and funded by per capita assessments, the Steering Committee has been the primary public interest advocate before the Public Utility Commission, the Courts, and the Legislature on electric utility regulation matters for the last 30 years. The Steering Committee is coordinating its review of Oncor’s application and working with the designated attorneys and consultants to resolve issues in the Company’s filing; and through review of the application, the Steering Committee’s consultants determined that Oncor’s proposed rates are excessive; and the Steering Committee’s members and attorneys recommend that members deny the Application.
BACKGROUND INFORMATION: Oncor Electric Delivery Company ("Oncor" or "the Company") filed an application on or about June 26, 2025 with cities retaining original jurisdiction seeking to increase system-wide transmission and distribution rates by about $834 million or approximately 13% over present revenues. The Company asks the City to approve a 12.3% increase in residential rates and a 51.0% increase in street lighting rates. If approved, an average residential customer would see a bill increase of about $7.90 per month. The city previously passed a resolution on July 31st, 2025 to suspend the implementation of the rate change by 90 days. This current resolution must be adopted by October 29th in order to keep the current rates and prevent an increase.
FINANCIAL SUMMARY: The Company would continue to charge its existing rates to the citizens of McKinney and the City’s reasonable rate case expenses shall be reimbursed in full by Oncor.
BOARD OR COMMISSION RECOMMENDATION: N/A