2020-31 - RTOWN OF PROSPER, TEXAS
RESOLUTION NO. 2020-31
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PROSPER,
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
TOWN SHOULD BE DENIED; AUTHORIZING PARTICIPATION WITH ONCOR
CITIES STEERING COMMITTEE; AUTHORIZING THE HIRING OF LEGAL
COUNSEL AND CONSULTING SERVICES; FINDING THAT THE TOWN'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;
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Town of Prosper, Texas ("Town") 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 Town of Prosper 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 Town 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 RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, THAT:
Resolution No. 2020-31, Page 1
SECTION 1
All of the above premises are found to be true and correct legislative determinations of the
Town of Prosper, Texas, and are hereby approved and incorporated into the body of this
Resolution as if copied in their entirety.
SECTION 2
The Town is authorized to participate with OCSC in Commission Docket No. 50734.
SECTION 3
Subject to the right to terminate employment at any time, the Town of Prosper 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 Town regarding
reasonable rates, and to direct any necessary administrative proceedings or court litigation
associated with an appeal Oncor's DCRF application.
SECTION 4
The rates proposed by Oncor to be recovered through its DCRF charged to customers
located within the Town limits, are hereby found to be unreasonable and shall be denied.
SECTION 5
The Company shall continue to charge its existing rates to customers within the Town.
SECTION 6
The Town's reasonable rate case expenses shall be reimbursed in full by Oncor within 30
days of the adoption of this Resolution.
SECTION 7
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 8
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@lglawfirm.com.
SECTION 9
This Resolution shall be effective from and after its passage by the Town Council.
Resolution No. 2020-31, Page 2
DULY PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, ON THIS 28TH DAY OF APRIL, 2020.
ATTEST:
Melissa Lee, Town Secretary
APPROVED AS TO FORM AND LEGALITY:
Terrence S. Welch, Town Attorney
Ray Smith, Mayor
Resolution No. 2020-31, Page 3