O-3011-5-11ORDINANCE NO. 3011-5-11
' AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ("CITY-) APPROVING A NEGOTIATED RESOLUTION
BETWEEN THE STEERING COMMITTEE OF CITIES SERVED BY ONCOR
("STEERING COMMITTEE") AND ONCOR ELECTRIC DELIVERY COMPANY
LLC ("ONCOR" OR "COMPANY") REGARDING THE COMPANY'S
APPLICATION TO INCREASE ELECTRIC RATES IN ALL CITIES EXERCISING
ORIGINAL JURISDICTION; DECLARING EXISTING RATES TO BE
UNREASONABLE; REQUIRING THE COMPANY TO REIMBURSE CITIES'
REASONABLE RATEMAKING EXPENSES; ADOPTING TARIFFS THAT
REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE NEGOTIATED
SETTLEMENT AND FINDING THE RATES TO BE SET BY THE ATTACHED
TARIFFS TO BE JUST AND REASONABLE; APPROVING ONCOR'S PROOF OF
REVENUES; ADOPTING A SAVINGS CLAUSE; PROVIDING AN EFFECTIVE
DATE; AND REQUIRING DELIVERY OF A COPY OF THIS ORDINANCE TO
THE COMPANY AND THE STEERING COMMITTEE'S LEGAL COUNSEL.
WHEREAS, the City is an electric utility customer of Oncor and a regulatory authority with an interest in
the rates and charges of Oncor, and,
WHEREAS, the City is a member of the Steering Committee of Cities Served by Oncor ("Steering
' Committee"), a coalition of approximately 160 similarly situated cities served by Oncor that have joined
together to facilitate the review of and response to electric issues affecting rates charged in the Oncor service
area; and,
WHEREAS, on or about January 7, 2011, Oncor filed with the City its application to increase electric base
rates by approximately $353 million, such increase to be effective in every municipality within Oncor's
service territory; and,
WHEREAS, the Steering Committee coordinated their review of Oncor's filing by designating an Executive
Committee made up of Steering Committee representatives, assisted by Steering Committee attomeys and
consultants, to resolve issues identified by the Steering Committee in the Company's filing; and,
WHEREAS, the Company has filed evidence that existing rates are unreasonable and should be changed;
and,
WHEREAS, independent analysis by the Steering Committee's rate experts concluded that Oncor is able to
justify an increase over current rates of $136.7 million; and,
WHEREAS, the Steering Committee has entered a Settlement Agreement ("Attachment C") with Oncor to
increase base rate revenues by $136.7 million; and,
WHEREAS, the Executive Committee of the Steering Committee, and the Steering Committee's lawyers and
consultants recommend that Steering Committee members approve the attached rate tariffs ("Attachment A"
' and "Attachment B" to this Ordinance), which will increase the Company's revenue requirement by $136.7
million; and,
WHEREAS, the attached tariffs implementing new rates are consistent with the negotiated resolution reached
by the Steering Committee and are just, reasonable, and in the public interest; and,
WHEREAS, it is the intention of the parties that if the City determines any rates, revenues, terms and
' conditions, or benefits resulting from a Final Order or subsequent negotiated settlement approved in any
proceeding addressing the issues raised in the Company's filing would be more beneficial to the City than the
terms of the attached tariff, then the more favorable rates, revenues, terms and conditions, or benefits shall
additionally accrue to the City; and,
WHEREAS, the negotiated resolution of the Company's filing and the resulting rates are, as a whole, in the
public interest.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, THAT:
SECTION 1. The findings set forth in this Ordinance are hereby in all things approved.
SECTION 2. The City Council finds the existing rates for electric service provided by Oncor are
unreasonable and new tariffs, which are attached hereto and incorporated herein as Attachments A and B, are
just and reasonable and are hereby adopted.
SECTION 3. Oncor shall reimburse the reasonable ratemaking expenses of the Steering Committee in
processing the Company's rate application.
SECTION 4. To the extent any resolution or ordinance previously adopted by the Council is inconsistent
with this Ordinance, it is hereby repealed.
SECTION 5. The meeting at which this Ordinance was approved was in all things conducted in strict
' compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551.
SECTION 6. If any one or more sections or clauses of this Ordinance is adjudged to be unconstitutional
or invalid, such judgment shall not affect, impair or invalidate the remaining provisions of this Ordinance and
the remaining provisions of the Ordinance shall be interpreted as if the offending section or clause never
existed.
SECTION 7. If the City determines any rates, revenues, terms and conditions, or benefits resulting from a
Final Order or subsequent negotiated settlement approved in any proceeding addressing the issues raised in
the Company's filing would be more beneficial to the City than the terms of the attached tariffs, then the more
favorable rates, revenues, terms and conditions, or benefits shall additionally accrue to the City.
SECTION 8. This Ordinance and Settlement Agreement ("Attachment C") shall become effective from and
after its passage with rates authorized by attached Tariffs to be effective in two phases. Phase one tariffs
(attached to this Ordinance as "Attachment A"), increasing Oncor's revenues by $93.7 million, are effective
for bills rendered on or after July 1, 2011. Phase two tariffs (attached to this Ordinance as "Attachment B"),
increasing Oncor's revenues by $43 million, are effective for bills rendered on or after January 1, 2012.
SECTION 9. A copy of this Ordinance shall be sent to Oncor, care of Autry Warren, Oncor Electric
Delivery Company, LLC, 1601 Bryan St., 23's Floor, Dallas, Texas 75201 and to Thomas Brocato, at Lloyd
Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725.
Ordinance No. 3011-5-11. Page 2
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ON THIS THE 24"" DAY OF MAY, 2011.
APPROVED AS TO FORM:
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Peter G. Smith, CM ATTORNEY
1
APPROVED:
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Stephen Terrell, MAYOR
ATTEST:
Shelley B. George, 4C, CITY SE TARP
Ordinance No. 3011-5-11, Page 3