R572RESOLUTION NO. 572
A RESOLUTION OF THE CITY OF KENNEDALE, TEXAS, FINDING THAT
ONCOR ELECTRIC DELIVERY COMPANY LLC'S APPLICATION FOR
APPROVAL TO AMEND ITS DISTRIBUTION COST RECOVERY FACTOR TO
INCREASE DISTRIBUTION RATES WITHIN THE CITY SHOULD BE DENIED;
AUTHORIZING PARTICIPATION WITH ONCOR CITIES STEERING
COMMITTEE; AUTHORIZING THE HIRING OF LEGAL COUNSEL AND
CONSULTING SERVICES; 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, the City of Kennedale, 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 Oncor Cities Steering Committee ("OCSC") is 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 in matters before the Public Utility Commission ("Commission") and the
courts; and
WHEREAS, on or about April 3, 2020, Oncor filed with the Commission an
Application to Amend its Distribution Cost Recovery Factor ("DCRF"), Commission
Docket No. 50734, seeking to increase distribution rates by $75.9 million annually (an
approximately $0.88 increase to the average residential customer's bill); and
WHEREAS, the City of Kennedale, Texas, will cooperate with OCSC in
coordinating their review of Oncor's DCRF filing with designated attorneys and
consultants, prepare a common response, negotiate with the Company, and direct any
necessary litigation, to resolve issues in the Company's filing; and
WHEREAS, all electric utility customers residing in the City will be impacted by
this ratemaking proceeding if it is granted; and
WHEREAS, working with the OCSC to review the rates charged by Oncor allows
members to accomplish more collectively than each city could do acting alone; and
WHEREAS, OCSC's members and attorneys recommend that members deny
Oncor's DCRF.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF KENNEDALE, TEXAS:
Page 1 of 3
50734.
SECTION 1.
That the City is authorized to participate with OCSC in Commission Docket No.
SECTION 2.
That, subject to the right to terminate employment at any time, the City of
Kennedale, Texas, hereby authorizes the hiring of the law firm of Lloyd Gosselink
Rochelle & Townsend, P.C. 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 Oncor's DCRF
application.
SECTION 3.
That 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.
That the Company shall continue to charge its existing rates to customers within
the City.
SECTION 5.
That the City's reasonable rate case expenses shall be reimbursed in full by
Oncor within 30 days of the adoption of this Resolution.
SECTION 6.
That 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.
That a copy of this Resolution shall be sent to Tab Urbantke, Attorney for Oncor,
at Hunton Andrews Kurth LLP, 1445 Ross Avenue, Suite 3700, Dallas, Texas 75202,
and to Thomas Brocato, General Counsel to OCSC, at Lloyd Gosselink Rochelle &
Townsend, P.C., P.O. Box 1725, Austin, TX 78767-1725, or tbrocato@Iglawfirm.com.
PASSED AND APPROVED ON THIS 19TH DAY OF MAY, 2020.
Page 2 of 3
SIGNATURE PAGE FOR
RESOLUTION NO. 572
CITY OF KENNEDALE, TEXAS
ATTEST:
Ediva)/
CITY SECRETARY LES IE E. GALLOWAY
APPROVED AS TO FORM .
CIT • ' ORN DREW LAKIN
APPROVED:
r
MAYOR BRIAN JO11NSON
*COUNI
Page 3 of 3
P572 CITY OF KErT EDAI E. T. 2020