R252RESOLUTION N0.252
A RESOLUTION OF THE CITY COUNCIL OF KENNEDALE,
TEXAS AUTHORIZING THE SUSPENSION OF PROPOSED
RATES AND THE INTERVENTION IN THE PUBLIC UTILITY
COMMISSION PROCEEDING INVOLVING THE REQUEST TO
INCREASE ELECTRIC RATES OF ONCOR ELECTRIC
DELIVERY COMPANY; AUTHORIZING PARTICIPATION IN A
COALITION OF MUNICIPALITIES KNOWN AS THE ALLIANCE
OF TXU/ONCOR CUSTOMERS ("ATOC"); PROVIDING FOR
THE RETENTION OF EXPERTS; FINDING THAT THE
MEETING COMPLIES WITH THE OPEN MEETINGS ACT;
SUCH OTHER FINDINGS AND PROVISIONS RELATED TO THE
SUBJECT; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, on June 27, 2008 Oncor Electric Delivery Company ("Oncor") filed a
request to increase its transmission and distribution rates by more than $275 million; and
WHEREAS, under the Public Utility Regulatory Act § 36.108 a municipality may
suspend the effective date for adoption of the request for a change in rates; and
WHEREAS, in June 2008 four retail electric providers ("REPs") have gone out of
business, forcing thousands of electric customers to purchase electricity at prices which are
unheard of in the United States; and
WHEREAS, the Oncor rate increase request is being filed at a time when the Public
Utility Commission of Texas is considering requests for over $5 billion in new transmission
projects. A large portion of the costs for these projects will be borne by customers located within
the municipalities served by Oncor; and
WHEREAS, the general rate increase being requested by Oncor is in addition to the
surcharge being sought for advanced metering services; and
WHEREAS, the Oncor rate increase requires the specialized expertise of lawyers and
experts who concentrate on analyzing utility rate requests; and
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WHEREAS, the coalition known as the Alliance of TXU/Oncor Customers ("ATOC")
was active at the Public Utility Commission of Texas in the Oncor 2007 rate request proceeding
and in the proceeding involving the acquisition of TXU Electric Distribution Company by Texas
Entergy Future Holdings; and
WHEREAS, participation in ATOC will benefit electric customers within our
municipality by helping insure that Oncor rates are just and reasonable.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KENNEDALE, TEXAS THAT:
Section 1. The findings set out in the preamble to this resolution are in all things
approved and adopted.
Section 2. That the City is authorized to join with other municipalities, public entities
and commercial customers in order to participate in the Alliance of TXU/Oncor Customers
("ATOC"), to form a steering committee to provide direction and guidance to legal and
consulting experts with regard to the Oncor 2008 General Rate Request.
Section 4. That the City does hereby suspend the proposed effective date of Oncor's
request for an increase in rates for a period of 90 days.
Section 3. That the City authorizes the law firm of Herrera & Boyle, PLLC to act on
behalf of the City and ATOC in the Oncor 2008 General Rate Request and related proceedings.
Section 4. Legal counsel for ATOC is authorized to take such actions in connection
with the Oncor 2008 General Rate Request as are in the best interest of the customers of Oncor
who are located within the City's municipal boundaries, consistent with the instructions of the
Steering Committee, including any administrative or judicial proceedings related to Oncor's 2008
General Rate Request.
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Section 5. That the meeting at which this resolution was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code,
Chapter 551.
Section 11. That this resolution shall become effective from and after its passage.
``' ~~,,,,,~~~~~E,~;SSED AND APPROVED this 10th day of July 2008.
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~'= ~ ~:, ~ ` ~ ' ~~',~' MAYOR, BRYAN LANKHORST
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KATHY TUR ER, CITY SECRETARY
APPROVED AS TO FORM:
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WAYNE K. OLSON, CITY ATTORNEY
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