R-2777-10-08RESOLUTION NO. 2777-10-084R)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
' COUNTY, TEXAS, FINDING THAT ONCOR ELECTRIC COMPANY'S
REQUESTED INCREASES TO ITS ELECTRIC TRANSMISSION AND
DISTRIBUTION RATES AND CHARGES 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.
WHEREAS, pursuant to § 33.001 of the Public Utility Regulatory Act ("PURA"), the City has exclusive
original jurisdiction over the electric rates, operations, and services provided within city limits; and,
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 City of Allen ("City") 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 City 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 City is a member of the Oncor Cities Steering Committee (Steering Committee) and has
' cooperated with 145 similarly situated city 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 city action; and,
WHEREAS, the City, 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 CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS, THAT:
SECTION 1. The rates proposed by Oncor Electric Delivery Company, to be recovered through its electric
transmission and distribution rates charged to customers located within the City limits, are hereby found to be
unreasonable and shall be denied.
SECTION 2. The Company shall continue to charge its existing rates for transmission and distribution
services to customers within the City.
' SECTION 3. The City's reasonable rate case expenses shall be reunbursed by Oncor.
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SECTION 4. 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.
SECTIONS. A copy of this Resolution shall be sent to Oncor, care of Debra Anderson, Oncwr Electric
Delivery Company, 1601 Bryan St., Suite 23-055C, Dallas, Texas 75201 and to Geoffrey Gay, General
Counsel to the Oncor Cities Staring Committee, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box
1725, Austin, Tom 78767-1725.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ON THIS THE 14TH DAY OF OCTOBER, 2008.
APPROVED AS TO FORM:
Pder G. SMWCItY Atbrney
ATTEST:
Ordinance No. 2777-10-08 (R), Page 2