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R-3568-5-18RESOLUTION NO. 3568-5-18(R) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, FINDING THAT ONCOR ELECTRIC DELIVERY COMPANY LLC'S APPLICATION FOR APPROVAL OF A DISTRIBUTION COST RECOVERY FACTOR PURSUANT TO 16 TEX. ADMIN. CODE § 25.143 TO INCREASE DISTRIBUTION RATES WITHIN THE CITY SHOULD BE DENIED; 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; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Allen, 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 City of Allen is a member of the Steering Committee of Cities Served by Oncor ("Steering Committee"), 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; and, WHEREAS, on or about April 5, 2018, Oncor filed with the City an Application for Approval of a Distribution Cost Recovery Factor ("DCRF'), PUC Docket No. 48231, seeking to increase electric distribution rates by ' approximately $19,002,177; and, WHEREAS, all electric utility customers residing in the City will be impacted by this ratemaking proceeding if it is granted; and, WHEREAS, the Steering Committee is coordinating its review of Oncor's DCRF filing with designated attorneys and consultants to resolve issues in the Company's application; and, WHEREAS, the Steering Committee's members and attorneys recommend that members deny the DCRF. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, THAT: SECTION 1. The City is authorized to participate with Cities in PUC Docket No. 48231. SECTION 2. Subject to the right to terminate employment at any time, the City of Allen hereby authorizes the hiring of the law firm of Lloyd Gosselink 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 this application filed with the PUC. SECTION 3. 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. The Company shall continue to charge its existing rates to customers within the City. SECTION 5. The City's reasonable rate case expenses shall be reimbursed in full by Oncor within 30 days of presentation of an invoice to Oncor. SECTION 6. 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. A copy of this Resolution shall be sent to Stephen N. Ragland, 1616 Woodall Rodgers Freeway, Dallas, Texas 75202 and to Thomas Brocato, General Counsel to the Cities, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725. DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, ON THIS THE STM DAY OF MAY 2018. APPROVED: *Sth,,errell, MAYOR ATTEST: Shelley B. Georg , CITY SECRE Y Resolution No. 3568.5-18(R), Page 2