Saturday, April 20, 2024
A rate request from Oncor Electric Delivery that would have gone into effect June 17 was suspended by a vote from the Gatesville City Council at a meeting June 14 that will allow attorneys to look through a 5,000 page statement of intent filed by the company.
A memorandum given to Council members noted that Oncor's proposed rate increase would amount to 11.2% for residential rates, and would increase the company's revenue by an estimated $251 million.
The Council's actions continue the city of Gatesville's participation in the Alliance of Oncor Cities. As a regulatory authority under the Public Utility Regulatory Act, the city of Gatesville has the right to question the rate increase filing.
The city memorandum stated that "Oncor's application affects all retail electric providers within their service area, and customers ... will be affected if these charges are passed onto consumers, which is expected."
While the Gatesville area is primarily served by Texas New Mexico Power Company and Hamilton County Electric Co-Op, Gatesville City Manager Bill Parry told the Council, "When one electric company raises rates, all the others follow suit."
The city's primary connection to Oncor is that it provides electric service to the fresh water intake at Lake Belton, which the city memorandum described as "a significant energy consumer."
As part of the Alliance of Oncor Cities, Gatesville is represented by Herrera Law & Associates in matters involving the rate request.
"We understand the cost of living is going up," Parry told the Council, but added that suspending the rate request will give the Herrera Law firm the time they need to work through the 5,000-page document."
Parry said the Council's action on June 14 is the first step in a two phase process. The city is expected to take final action on Oncor's request no later than Sept. 15 following attorney review.
"Part of this is due diligence on our part" in closely monitoring the rate increase request, said Mayor Gary Chumley.
He referred to a previous request by Atmos Energy, a natural gas distribution company, that included $45 million worth of art for the company as part of its rate request. Attorneys for cities served by Atmos discovered that detail, and contested the request.
"Attorneys will pore through the document (the rate request filed with the Public Utility Commission) line by line to determine things like that," Parry said.
He said he believed Oncor might just have transmission lines rather than power plants. He added that Texas New Mexico Power is also a distribution company that buys power from another company that generates the energy.
The suspension of the rate increase request will be in effect for 90 days from the Council's vote to give attorneys the ability to review – and possibly contest – the request.
