Item Coversheet

CITY COUNCIL AGENDA COMMUNICATION
AGENDA DATE:May 25, 2021
SUBJECT:

Adopt a Resolution Denying Oncor Electric Delivery Company's Application for Approval of a Distribution Cost Recovery Factor.

STAFF RESOURCE:

Rebecca Vice, Assistant City Manager

PREVIOUS COUNCIL ACTION:

On April 28, 2020, City Council adopted a Resolution denying Oncor Electric Company's application for approval of a Distribution Cost Recovery Factor.

ACTION PROPOSED:

Adopt a Resolution Denying Oncor Electric Delivery Company's Application for Approval of a Distribution Cost Recovery Factor.




BACKGROUND

On April 8, 2021, Oncor Electric Delivery Company LLC ("Oncor" or "Company") filed an Application for Approval of a Distribution Cost Recovery Factor ("DCRF") in Public Utility Commission of Texas ("Commission") Docket No. 51996.  In the filing, the Company is seeking an increase in distribution revenues of $97,826,277. This is Oncor's third DCRF filing under a law adopted in 2011 allowing electric utilities to file limited issue, limited review cases. [For reference, Oncor initially asked for $75,889,531 last year and the final settlement agreement amount was $64,859,172.]

 

The Oncor Cities Steering Committee ("OCSC"), of which the City of Allen is a member, has engaged the services of a consultant, Mr. Karl Nalepa, to review the Company's filing.  Mr. Nalepa will review the filing and identify adjustments that should be made to the Company's request. Cities have jurisdiction over this matter.

 

The Public Utility Commission's rules allow cities 60 days to act on this application.  That deadline is June 7, 2021. the attached Resolution authorizes the City of Allen to join the OCSC to evaluate the filing, determine whether the filing complies with the law, and if lawful, to determine what further strategy, including settlement, to pursue.


STAFF RECOMMENDATION

Staff recommends that the City Council adopt a Resolution denying Oncor Electric Delivery Company's application for approval of a Distribution Cost Recovery Factor.


MOTION

I make a motion to adopt Resolution No. __________ denying Oncor Electric Delivery Company's application for approval of a Distribution Cost Recovery Factor.



ATTACHMENTS:
Description
Resolution