08-090 R - Denying the Proposed Change in Rates for Oncor ElectricRESOLUTION NO.08-090
A RESOLUTION OF THE TOWN OF PROSPER, TEXAS
FINDING THAT ONCOR ELECTRIC COMPANY'S
REQUESTED INCREASES TO ITS ELECTRIC
TRANSMISSION AND DISTRIBUTION RATES AND
CHARGES WITHIN THE TOWN SHOULD BE DENIED;
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.
WHEREAS, pursuant to § 33.001 of the Public Utility Regulatory Act ("PURA"), the
Town has exclusive original jurisdiction over the electric rates, operations, and services provided
within town limits;
WHEREAS, on or about June 27, 2008, Oncor Electric Delivery Company ("Oncor" or
"Company"), pursuant to PURA §§. 33.001 and 36.001 filed with the Town of Prosper ("Town")
a Statement of Intent to increase electric transmission and delivery rates by $275 million on a
system -wide basis within its service area effective August 8, 2008; and
WHEREAS, pursuant to PURA § 36.108, the Town lawfully suspended the August 8,
2008, effective date by resolution to provide time to study the reasonableness of the Company's
application to increase rates; and
WHEREAS, the Town is a member of the Oncor Cities Steering Committee (Steering
Committee) and has cooperated with 145 similarly situated Town members to conduct a review
of the Company's application, to hire and direct legal counsel and consultants, to prepare a
common response to the filing, to negotiate with the Company and to direct any necessary
litigation appealing final Town action; and
WHEREAS, the Town, in a reasonably noticed meeting that was open to the public,
considered the Company's application; and
WHEREAS, the consultants who were retained by the Steering Committee to evaluate
the merits of the Company's application have determined that the Company's requested $275
million increase in revenues for its transmission and distribution system is not supported by
evidence; and
WHEREAS, PURA § 33.023 provides that reasonable costs incurred by cities in
ratemaking activities are to be reimbursed by the regulated utility.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN
OF PROSPER, TEXAS:
1. That the rates proposed by Oncor Electric Delivery Company, to be recovered
through its electric transmission and distribution rates charged to customers located within the
Town limits, are hereby found to be unreasonable and shall be denied.
2. That the Company shall continue to charge its existing rates for transmission and
distribution services to customers within the Town.
3. That the Town's reasonable rate case expenses shall be reimbursed by Oncor.
4. 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.
5. A copy of this Resolution shall be sent to Oncor, care of Debra Anderson, Oncor
Electric Delivery Company, 1601 Bryan St., Suite 23-055C, Dallas, Texas 75201 and to
Geoffrey Gay, General Counsel to the Oncor Cities Steering Committee, at Lloyd Gosselink
Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725.
PASSED AND APPROVED, this the 14`h day of October, 2008.
APPROVED:
arles Niswanger, Mayor
ATTEST:
atthew D. Denton, TRMC
Town Secretary