ORD 2011-20TOWN OF TROPHY CLUB, TEXAS
ORDINANCE NO. 2011-20
AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF TROPHY
CLUB, TEXAS ("TOWN") 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; DETERMINING THAT THIS
ORDINANCE WAS PASSED IN ACCORDANCE WITH THE
REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; DECLARING
AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS
ORDINANCE TO THE COMPANY AND THE STEERING COMMITTEE'S
LEGAL COUNSEL.
WHEREAS, the Town of Trophy Club, Texas ("Town") 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 Town 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 Town 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 attorneys 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 AU and "Attachment SU 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 Town 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 Town than the terms of the attached tariff,
then the more favorable rates, revenues, terms and conditions, or benefits shall additionally
accrue to the Town; 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 TOWN COUNCIL OF THE TOWN
OF TROPHY CLUB, TEXAS:
Section 1. That the findings set forth in this Ordinance are hereby in all things
approved.
Section 2. That the Town 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 S, are just and reasonable and are hereby adopted.
Section 3. That Oncor shall reimburse the reasonable ratemaking expenses of the
Steering Committee in processing the Company's rate application.
Section 4. That to the extent any resolution or ordinance previously adopted by the
Council is inconsistent with this Ordinance, it is hereby repealed.
Section 5. That 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. That if anyone 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. That if the Town 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 Town than the terms of the attached tariffs, then the more favorable rates,
revenues, terms and conditions, or benefits shall additionally accrue to the Town.
ORO 2011-20 Page 2 of 3
Section 8. That this Ordinance and Settlement Agreement ("Attachment Cn
) 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 An),
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. That a copy of this Ordinance shall be sent to Oncor, care of Autry
Warren, Oncor Electric Delivery Company, LLC, 1601 Bryan St., 23rd Floor, Dallas, Texas
75201 and to Thomas Brocato, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box
1725, Austin, Texas 78767-1725.
PASSED AND APPROVED this the 23rd day of May, 2011.
ATTEST:
(/ lh CLVLf/J 1m / J J a aiLV
'\ Shahnon DePrater, l'own Secretary
"ToWn of Trophy Club, Texas
APPROVED TO AS FORM:
Patricia A. Adams, Town Attorney
Town of Trophy Club, Texas
ORD 2011-20
Connie White, Mayor
Town of Trophy Club, Texas
[SEAL]
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