Title
Approving a resolution with the caption reading: RESOLUTION BY THE CITY OF PFLUGERVILLE, TEXAS ("CITY") SUSPENDING THE EFFECTIVE DATE FOR NINETY DAYS IN CONNECTION WITH THE RATE INCREASE FILING OF ONCOR ELECTRIC DELIVERY COMPANY LLC ON JANUARY 7, 2011; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKINIG OTHER FINDINGS AND PROVISIONS RELATED TO THE SUGJECT; AND DECLARING AN EFFECTIVE DATE
Summary
The City of Pflugerville has participated in prior rate cases with Oncor as members of the Alliance of Oncor Cities. The Alliance allows its member cities the opportunity to address their concerns with Oncor rate filings as a group. This participation has resulted in favorable outcomes for Pflugerville and the other Alliance cities regarding the rates that Oncor is allowed to charge within our cities, and the amount of the franchise fee that is paid by Oncor to the cities.
This action supports the suspension of Oncor's proposed effective date of February 14, 2011 by extending the period for 90 days. This suspension is requested to allow adequate time for review and analysis of the large amount of data provided by Oncor for the rate filing consideration. I have included an information sheet provided by Herrera & Boyle, PLLC, the law firm representing the Alliance.
Deadline for City Council Action
The City must take action no later than February 14, 2011. If the City does not take action by that date, Oncor's proposed rates will be deemed approved by operation of law, subject to the City's ability to continue a hearing to address Oncor's rate application.
Fiscal Impact
There is no fiscal impact to the City for participation in the Alliance. Cities, by statute, are entitled to recover their reasonable rate case expenses from the utility.
Staff Recommendation
Staff recommends that the City of Pflugerville continue its participation in the Alliance of Oncor Cities and retain the law firm of Herrera & Boyle, PLLC to represent the City's interest in proceedings related to Oncor's rate case and to advise the City with regard to Oncor's application and that the City intervene in the proceeding before the Public Utility Commission of Texas. The recommendation is also to suspend Oncor's proposed effective date for its proposed increase in rates as set forth in Oncor's Statement of Intent.
Drafter
Lauri Gillam, Assistant City Manager