PILLAR: Fiscally Sound
AGENDA DATE: October 22, 2025
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Budget and Management Services
PRIORITY: N/A
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SUBJECT
Title
An ordinance denying rates as requested by Oncor Electric Delivery Company LLC on June 26, 2025 - Financing: No cost consideration to the City
Body
BACKGROUND
Oncor Electric Delivery Company LLC ("Oncor" or "the Company") filed an application on or about June 26, 2025, with the City of Dallas seeking to increase rates within the City of Dallas.
The law provides that a rate request made by an electric utility cannot become effective until at least 35 days following the filing of the application to change rates. Oncor originally requested a July 31, 2025, effective date; however, Oncor and the City reached a Rule 11 Agreement to extend the effective date to August 13, 2025, to permit the City to take action at a regularly scheduled City Council Meeting. The law permits the City to suspend the rate change for 90 days after the date the rate change would otherwise be effective. On August 13, 2025, the City by resolution suspend the rates for an additional 90 days. The deadline to take action on the requested rates is November 11, 2025.
Consultants and attorneys reviewing the case on behalf of the Oncor Cities Steering Committee, have determined that the requested rates are not justified and should be denied. If the City does not take action on the requested rates prior to November 11, 2025, the rates would be deemed approved by operation of law.
This rate case was filed concurrently with all cities in the Oncor service area and the Public Utility Commission of Texas. Oncor wants uniform rates across their system and will appeal the denial of their rates to the Public Utility Commission of Texas, which has appellant jurisdiction over the City. The appeal will be consolidated with the rate case that is already underway. The City is particip...
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