Director of Finance Todd Gastorf briefed council on the rate increase during the July 21 meeting. The recommendation to pass the resolution came from the Steering Committee of Cities Served by Oncor, a coalition representing municipalities within Oncor’s service area.
Gastorf said the average residential customer would see an increase of $7.90, or about 12.3%, to their monthly bill.
The Context
Oncor made a request with the Public Utility Commission of Texas, or PUCT, to increase the base rate June 26, according to the energy provider’s website.
The increase is proposed to help cover costs associated with statewide growth, construction and maintenance costs and the focus on safety and reliability, according to the Oncor website.
Oncor requested an effective date of July 31, according to a statement from the company.
“Our decision to file this request was not made lightly and we have done our best to absorb higher costs for several years,” Senior Vice President Debbie Dennis said in a statement. “We recognize the potential impacts a rate increase will have on our customers and we do our best to balance these impacts with the company’s ability to continue to meet the needs of our growing state.”
Two minute impact
If council approves the resolution, the rate increase effective date will be suspended for 90 days to allow the Richardson staff and the steering committee to evaluate the proposed increase and negotiate a possible settlement.
Until a decision by PUCT or a settlement is reached, the impact to the city’s budget is unknown, he said.
“There is a really significant rate structure proposed for street lighting [of] 51%,” Gastorf said.
The increased charge for street lights would have an impact on the budget of about $230,000, according to a staff presentation.
City staff are working with steering committee attorneys and rate consultants to evaluate Oncor’s filing and negotiate a settlement, according to city documents.
Council will vote on the resolution during the July 28 meeting.
