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HomeMy WebLinkAbout20-1576 04-28-2020 RESOLUTION NO . 20 -1576 A RESOLUTION OF THE CITY OF EULESS , TEXAS , FINDING THAT ONCOR ELECTRIC DELIVERY COMPANY LLC ' S APPLICATION FOR APPROVAL TO AMEND ITS DISTRIBUTION COST RECOVERY FACTOR TO INCREASE DISTRIBUTION RATES WITHIN THE CITY SHOULD BE DENIED ; AUTHORIZING PARTICIPATION WITH ONCOR CITIES STEERING COMMITTEE ; AUTHORIZING THE HIRING OF LEGAL COUNSEL AND CONSULTING SERVICES ; 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 Euless , 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 Oncor Cities Steering Committee (" OCSC ") is a coalition 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 in matters before the Public Utility Commission (" Commission ") and the courts ; and WHEREAS , on or about April 3 , 2020 , Oncor filed with the Commission an Application to Amend its Distribution Cost Recovery Factor ( " DCRF ") , Commission Docket No . 50734 , seeking to increase distribution rates by $ 75 . 9 million annually ( an approximately $ 0 . 88 increase to the average residential customer' s bill) ; and WHEREAS , the City of Euless will cooperate with OCSC in coordinating their review of Oncor' s DCRF filing with designated attorneys and consultants , prepare a common response , negotiate with the Company , and direct any necessary litigation to resolve issues in the Company' s filing ; and WHEREAS , all electric utility customers residing in the City will be impacted by this ratemaking proceeding if it is granted ; and WHEREAS , working with the OCSC to review the rates charged by Oncor allows members to accomplish more collectively than each city could do acting alone ; and WHEREAS , OCSC ' s members and attorneys recommend that members deny Oncor' s DCRF . NOW, THEREFORE , BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF EULESS , TEXAS , THAT : S ECTION 1 . The City is authorized to participate with OCSC in Commission Docket No . 50734 . S ECTION 2 . Subject to the right to terminate employment at any time , the City of Euless , Texas hereby authorizes the hiring of the law firm of Lloyd Gosselink Rochelle & Townsend , P . C . 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 Oncor' s DCRF application . S ECTION 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 . S ECTION 4 . The Company shall continue to charge its existing rates to customers within the City . S ECTION 5 . The City ' s reasonable rate case expenses shall be reimbursed in full by Oncor within 30 days of the adoption of this Resolution . S ECTION 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 . S ECTION 7 . A copy of this Resolution shall be sent to Tab Urbantke , Attorney for Oncor , at Hunton Andrews Kurth LLP , 1445 Ross Avenue , Suite 3700 , Dallas , Texas 75202 , and to Thomas Brocato , General Counsel to OCSC , at Lloyd Gosselink Rochelle & Townsend , P . C . , P . O . Box 1725 , Austin , TX 78767- 1725 , or tbrocato@Iglawfirm . com . Resolution No. 20- 1576, Page 2 of 3 APPROVED AND ADOPTED at a regular meeting of the Euless City Council on April 28 , 2020 , by a vote of 7 ayes , 0 nays , and 0 abstentions . APPROVED : . 1111111 l l l ill r , feijAptz ., in Martin , , Mayo ) c1 , 'ATTE$T : r /S , .1 i ► Sutter, RMC , CMC , City Secretary Resolution No. 20- 1576, Page 3 of 3