HomeMy WebLinkAboutResolution 2020-022 RESOLUTION NO. 2020-022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NORTH RICHLAND HILLS, 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 North 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 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 North Richland Hills 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.
Resolution No.2020-022
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NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
NORTH RICHLAND HILLS, TEXAS:
SECTION 1. That the City is authorized to participate with OCSC in Commission
Docket No. 50734.
SECTION 2. That, subject to the right to terminate employment at any time, the
City of North Richland Hills 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.
SECTION 3. That 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. That the Company shall continue to charge its existing rates to
customers within the City.
SECTION 5. That the City's reasonable rate case expenses shall be reimbursed
in full by Oncor within 30 days of the adoption of this Resolution.
SECTION 6. That 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. That 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.
PASSED AND APPROVED on this 11th day of May, 2020.
C' f Nort chland Hills
Oscar vino, Mayor
ATTEST:
APPROVED AS FORM:
.N
Alicia RichardsortC7tySecret 4 ales is McGinnis, City Attorney
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Resolution No.2020-022
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