At their Oct. 13 meeting, council members adopted a resolution formally denying Oncor’s requested rate increase, giving the company 30 days to appeal the decision to the Public Utility Commission of Texas.
How we got here
Oncor filed an application with the commission in June to raise system-wide electricity transmission and distribution rates by about 13% above current revenues, according to city documents.
According to a news release from the company, Oncor is seeking the rate increase to address three main needs:
- Recovering from storm damages, which makes up nearly half of the requested increase
- Rising operational expenses, including materials and labor, due to inflation
- Maintaining financial stability while supporting expanding infrastructure needs
What it means
The proposed rate increase would result in a 12.3% increase in residential rates and a 51% increase in street lighting rates, according to city documents.
If approved, the change would result in an increase of $7.90 on an average monthly bill for Plano residents.
Quote of note
Andrew Fortune, director of policy and government relations, said Oncor’s request was an “extraordinary increase.”
“Our residents are seeing increased costs,” Fortune said. “This in particular is a staggering number.”
Zooming out
Plano is part of the Steering Committee of Cities Served by Oncor, a coalition of Texas municipalities that advocate for fair electric rates.
All cities with original jurisdiction—meaning they have the authority to regulate electric rates within their boundaries—need to adopt the resolution denying the rate change by Oct. 29, according to city documents.
