HomeMy Public PortalAboutResolution No. 579-23 07-24-2023 RESOLUTION NO. 579-23
A RESOLUTION OF THE CITY OF RICHLAND HILLS, TEXAS FINDING
THAT ONCOR ELECTRIC DELIVERY COMPANY LLC'S APPLICATION
TO AMEND ITS DISTRIBUTION COST RECOVERY FACTOR AND
UPDATE GENERATION RIDERS TO INCREASE DISTRIBUTION RATES
WITHIN THE CITY SHOULD BE DENIED; AUTHORIZING
PARTICIPATION WITH THE STEERING COMMITTEE OF CITIES
SERVED BY ONCOR; AUTHORIZING HIRING OF LEGAL COUNSEL;
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.
WHEREAS, the City of Richland Hills, Texas ("City") is an electric utility customer
of Oncor Electric Delivery Company LLC. ("Oncor" or "Company"), and a regulatory
authority with an interest in the rates and charges of Oncor; and
WHEREAS, the City is a member of the Steering Committee of Cities Served by
Oncor ("OCSC"), a membership of similarly situated cities served by Oncor that have
joined together to efficiently and cost effectively review and respond to electric issues
affecting rates charged in Oncor's service area; and
WHEREAS, on or about June 29, 2023, Oncor filed with the City an Application to
Amend its Distribution Cost Recovery Factor and Update Mobile Generation Riders, PUC
Docket No. 55190, seeking to increase electric distribution rates by approximately$152.78
million and update Oncor's Rider Mobile Generation and Rider Wholesale Mobile
Generation to recover $1.07 million related to mobile generation facilities; and
WHEREAS, all electric utility customers residing in the City will be impacted by this
ratemaking proceeding if it is granted; and
WHEREAS, OCSC is coordinating its review of Oncor's DCRF filing with
designated attorneys and consultants to resolve issues in the Company's application; and
WHEREAS, OCSC members and attorneys recommend that members deny the
DCRF.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF RICHLAND HILLS, TEXAS, THAT:
SECTION 1.
The City is authorized to participate with Cities in PUC Docket No. 55190.
SECTION 2.
Subject to the right to terminate employment at any time, the City hereby
authorizes the hiring of the law firm of Lloyd Gosselink and consultants to negotiate with
the Company, make recommendations to the City regarding reasonable rates, and to
direct any necessary administrative proceedings or court litigation associated with an
appeal of this application filed with the PUC.
SECTION 3.
The rates proposed by Oncor to be recovered through its DCRF charged to
customers located within the City limits, are hereby found to be unreasonable and shall
be denied.
SECTION 4.
The Company shall continue to charge its existing rates to customers within the
City.
SECTION 5.
The City's reasonable rate case expenses shall be reimbursed in full by Oncor
within 30 days of presentation of an invoice to Oncor.
SECTION 6.
It is hereby officially found and determined that the meeting at which this
Resolution is passed is open to the public as required by law and the public notice of the
time, place, and purpose of said meeting was given as required.
SECTION 7.
A copy of this Resolution shall be sent to J. Michael Sherburne, Vice President —
Regulatory, Oncor Electric Delivery Company LLC, 1616 Woodall Rodgers Freeway,
Dallas, Texas 75202; to Tab R. Urbantke, Hunton Andrews Kurth LLP, 1445 Ross
Avenue, Suite 3700, Dallas, Texas 75202; and to Thomas L. Brocato, General Counsel
to OCSC, at Lloyd Gosselink Rochelle & Townsend, 816 Congress Ave., Suite 1900,
Austin, Texas 78701.
Resolution No. 579-23, Page 2 of 3
APPROVED AND ADOPTED at a regular meeting of the Richland Hills City
Council on July 24, 2023, by a vote of 7 ayes, J nays, and abstentions.
APPROVED:
THE HO ORABLE DWARD, OPEZ, OR
ATTEST:
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INDSAY R�t1VL SON, CITY SECRETARY
Resolution No. 579-23, Page 3 of 3