HomeMy Public PortalAboutResolution No. 463-16 04-19-2016RESOLUTION N0.463-16
DIRECTING ONCOR ELECTRIC DELIVERY COMPANY, LLC TO
FILE CERTAIN INFORMATION WITH THE CITY OF RICHLAND
HILLS, TEXAS; SETTING A PROCEDURAL SCHEDULE FOR THE
GATHERING AND REVIEW OF NECESSARY INFORMATION IN
CONNECTION THEREWITH; SETTING DATES FOR THE FILING OF
THE CITY'S ANALYSIS OF THE COMPANY'S FILING AND THE
COMPANY'S REBUTTAL TO SUCH ANALYSIS; RATIFYING THE
HIRING OF LEGAL COUNSEL AND CONSULTANTS; RESERVING
THE RIGHT TO REQUIRE THE REIMBURSEMENT OF THE CITY OF
RICHLAND HILLS RATE CASE EXPENSES; SETTING A PUBLIC
HEARING FOR THE PURPOSES OF DETERMINING IF THE
EXISTING RATES OF ONCOR ELECTRIC DELIVERY COMPANY
ARE UNREASONABLE OR IN ANY WAY IN VIOLATION OF ANY
PROVISION OF LAW AND THE DETERMINATION BY THE CITY OF
RICHLAND HILLS OF JUST AND REASONABLE RATES TO BE
CHARGED BY ONCOR ELECTRIC DELIVERY COMPANY, LLC.
WHEREAS, the City of Richland Hills is a regulatory authority under the Public Utility
Regulatory Act ("PURA") and has original jurisdiction over the rates of Oncor Electric Delivery
Company, LLC ("Oncor") to determine if such rates are just and reasonable; and
WHEREAS, Sections 33.021, 36.003 and 36.151 of PURA empower a regulatory
authority, on its own motion or on a complaint by any affected person, to determine whether the
existing rates of any public utility for any service are unreasonable or in any way in violation of
any provision of law, and upon such determination, to determine the just and reasonable rates;
and
WHEREAS, the City of Richland Hills has reason to believe that Oncor is over-earning
and its rates are excessive; and
WHEREAS, the City of Richland Hills is a member of the Steering Committee of Cities
Served By Oncor; and
WHEREAS, the Executive Committee of the Steering Committee of Cities Served by
Oncor has recommended that cities pass a resolution that requires Oncor to show cause why its
transmission and distribution rates should not be reduced; and
WHEREAS, the City of Richland Hills, and the City Council of the City of Richland
Hills desires, on its own motion, to exercise its authority under Sections 33.021, 36.003 and
36.151 of PURA; and
WHEREAS, a procedural schedule should be established for the filing of certain
information by Oncor, procedures to be followed to obtain and review information from Oncor,
the filing of an analysis of such information by the City, the filing of rebuttal information from
Oncor, and a public hearing at which time the City shall make a determination whether the
existing rates of Oncor are unreasonable or are in any way in violation of any provision of law,
and if such rates should be revised, and just and reasonable rates determined for Oncor.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF Richland Hills, TEXAS:
SECTION 1. This resolution constitutes notice of the City's intent to proceed with an
inquiry into the transmission and distribution rates charged by Oncor. On or before September
1, 2016, Oncor shall file with the City of Richland Hills information that demonstrates good
cause for showing that Oncor's transmission and distribution rates should not be reduced.
Specifically, Oncor shall file with the City of Richland Hills information for the test year
beginning January 1, 2015 and ending December 31, 2015, regarding Oncor's cost of service
elements, including, but not limited to, the elements detailed by the Public Utility Commission
as necessary for the filing of a Statement of Intent to Change Rates. The test year may be
updated for more current data and shall be adjusted for known and measureable changes.
SECTION 2. City's designated representatives shall have the right to obtain additional
information from Oncor through the filing of requests for information, which shall be responded
to within fifteen (15) days from the receipt of such request for information.
SECTION 3. City's designated representatives shall file their analysis of Oncor's filing
and information on or before October 13, 2016.
SECTION 4. Oncor shall file any rebuttal to the analysis of City's representatives on or
before November 10, 2016. With its rebuttal, Oncor may present whatever additional
information it desires to defend its current rates.
SECTION 5. A public hearing shall be conducted by the City Council for the City of
Richland Hills during a regular council meeting scheduled between November 15 and December
15. At such hearing a representative of Oncor and a representative of the City of Richland Hills
consultants will each be allowed to address the City Council and summarize previously filed
reports for no more than 15 minutes. Based upon such hearing, a determination of the
reasonableness of the existing rates of Oncor shall be made by the City Council and, if
necessary, just and reasonable rates shall be determined to be thereafter observed and enforced
for all services of Oncor within the City of Richland Hills, Texas.
SECTION 6. The City Council may, from time to time, amend this procedural schedule
and enter additional orders as may be necessary in the public interest and to enforce the
provisions hereof.
SECTION 7. Subject to the right to terminate employment at any time, the City of
Richland Hills hereby ratifies the Steering Committee's selection of Geoffrey Gay with the law
firm of Lloyd, Gosselink, Rochelle & Townsend as legal counsel to assist the City of Richland
Hills in its ratemaking and to prosecute any appeals to the Texas Public Utility Commission or
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court. The Executive Committee of the Steering Committee of Cities Served by Oncor shall
retain appropriate consultants to prepare a report and make rate recommendations.
SECTION 8. Fees and expenses of attorneys and consultants assisting the City in the
Steering Committee's review of the reasonableness of Oncor's rates will be processed through
the Steering Committee but the City reserves the right to seek reimbursement from Oncor
pursuant to the PURA Section 33.023.
SECTION 9. That it is hereby officially found and determined that the meeting at
which this resolution was passed was open to the public as required by law, and that public
notice of the time, place, and purpose of said meeting was given all as required by Section
551.041, Texas Government Code.
AND IT IS SO ORDERED.
The above and foregoing resolution was passed and approved on this the 19th day of April, 2016,
by the following vote:
Ayes: 5
Nays: 0
Abstentions: 0
At regular meeting on April 19th, 2016.
MAYOR
ATTEST:
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