Title
Consider approving Resolution No. 2025-187 denying Oncor Electric Delivery Company LLC's application to change rates within the City of Farmers Branch; and take appropriate action.
Body
REQUESTOR:
Public Works Department
BACKGROUND:
On June 26, 2025, Oncor Electric Delivery Company LLC ("Oncor" or "Company") filed an application with cities retaining original jurisdiction seeking to increase system-wide transmission and distribution rates by about $834 million or approximately 13% over present revenues. The company requests that the City approve a 12.3% increase in residential rates and a 51.0% increase in street lighting rates. If approved, the impact of this requested increase on an average residential customer would be about $7.90 per month.
In a prior City action, Oncor's rate request was suspended from taking effect for 90 days, the fullest extent permissible under the law. This time period has permitted the City, through its participation with the Steering Committee of Cities Served by Oncor ("Steering Committee"), to determine that the proposed rate increase is unreasonable. Consistent with the recommendations of the experts engaged by the Steering Committee, Oncor's request for a rate increase should be denied.
DISCUSSION:
Accordingly, the purpose of the Resolution is to deny Oncor's rate change application. Once the Resolution is approved, Oncor will have 30 days to appeal the decision to the Public Utility Commission of Texas ("PUC"), where the appeal will be consolidated with Oncor's filing (PUC Docket No. 58306) currently pending at the PUC. All cities with original jurisdiction will need to adopt the Resolution by October 29, 2025.
FISCAL IMPACT:
No Financial Impact
DISTRICT:
Citywide
POSSIBLE COUNCIL ACTION:
1. I move to approve Resolution No. 2025-187 as presented.
2. I move to approve Resolution No. 2025-187 with modifications.
3. I move to table the issue for further study or take no action.
ATTACHMENT(S):
1. Resolution No. 20...
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