The suspension will allow city officials to negotiate the rate change and potentially lower the amount cities and residents have to pay for their electric bills.
In a nutshell
Oncor Electric requested cities to approve a 13% increase for system-wide transmission rates, which will add $834 million to city bills.
Officials with the cities have also been asked to approve a 12.3% increase in residential rates, which would bring the average residents bill up $7.90 per month, according to Keller city documents. Additionally, Oncor asked for a 51% increase in street lighting rates.
“Oncor has basically looked at the rates they charge for street lights. How they charge those and [is] making them all cost the same as what you would find for LED [lights],” Colleyville Assistant City Manager Adrienne Lothery said.
LED lights are considered an upgrade, and cities could choose to add LED lights over time, which would slowly increase their electricity bill. With the proposed rates from Oncor, cities are being asked to pay those higher rates even if they don’t have LED lights, Lothery said.
Colleyville, Grapevine and Keller officials approved a 90-day suspension at their respective July 15 council meetings. Roanoke City Council approved the rate increase suspension during its July 8 meeting.
“Every year we’re fighting this,” Colleyville Mayor Bobby Lindamood said. “I’m glad that [city officials] are going to go out and fight this again.”
The Grapevine resolution passed July 15 stated the rates will be suspended for the maximum period allowed by law to permit adequate time to review the proposed changes and to establish reasonable rates.
The background
There are approximately 170 cities that are a part of the Steering Committee of Cities Served by Oncor. The municipal coalition represents cities and consumers in regulatory proceedings, which includes legal representation to ensure that rate changes requested by utility companies are reviewed and decreased when possible, Lothery said.
According to a news release from the committee, Oncor was not required to change rates until 2027 but the company wanted to change rates sooner because of the growth in its service territory.
One more thing
The cities of Fort Worth and Southlake have until July 31 to suspend Oncor’s rate change. According to Pilar Schank, Southlake’s director of communication, Southlake City Council will address the subject during its Aug. 5 meeting. Southlake and Fort Worth did not hold any council meetings in July.
