Plano City Council members voted on July 28 to suspend the effective date of the rate increase, delaying its implementation to give city officials more time to review the changes and discuss rates.
What you need to know
Oncor filed an application with the Public Utility Commission of Texas on June 26 to raise electricity delivery rates by $834 million system-wide, according to city documents.
Following the request, several cities in the Dallas-Fort Worth metroplex also voted to suspend the rate increase.
If approved, the change would result in an increase of $7.90 on an average monthly bill for Plano residents, according to city documents.
The proposed change also includes increasing street lighting rates by 51%, according to city documents.
Zooming out
Plano is a member of the Steering Committee of Cities Served by Oncor, a coalition of about 170 municipalities that advocate for fair electric rates.
The committee assists member cities in reviewing electric rate requests, negotiating with Oncor and providing legal and expert support during regulatory proceedings, according to city documents.
Oncor’s previous major rate increase took place in 2022, according to city documents.
According to a news release from the company, Oncor is requesting the rate increase to meet the growing demands of the state and offset rising operational costs, driven by three main factors:
- Recovery from storm-related damages, which accounts for nearly half of the proposed increase
- Inflation and rising operational expenses
- Maintaining financial stability to support expanding infrastructure needs
The proposed changes were initially set to take effect July 31, but state law allows Plano to delay the rate increase for up to 90 days.
During that time, Plano officials and the steering committee will assess whether the increases are reasonable and consider potential responses.
