Tyler officials working to delay proposed Oncor Electric rate increase

Published 7:46 pm Monday, April 10, 2017

 

Some East Texans’ electric bills could go up by nearly 12 percent if Oncor Electric Company’s proposed rate increase takes effect.

Oncor maintains the electrical infrastructure used by energy producers. The proposed rate increases would affect all residents in Tyler and a majority of those living in Smith County.



Under the company’s proposal, the average homeowner will see an increase of $6.68 a month for a home with an energy consumption of 1,000-kilowatt hours of electricity, according to the city of Tyler. That’s an increase of 11.8 percent for homeowners, according to Tyler.

Tyler and over 100 other cities in the company’s coverage area have filed to postpone the rate increase, which will give them time to negotiate on behalf of their residents.

This is the first base increase customers have seen since 2011, the company said in a statement.

Most Popular

The increases are intended to recover investments made in the grid to serve the needs of customers, according to the statement.

In addition to changing the base rate, the company also intends to increase street lighting rates by half of a percent.

Overall, the current proposal would increase Oncor’s revenues by 7.5 percent, or $317 million annually, according to the city.

On Wednesday, the Tyler City Council will consider adopting a resolution suspending the effective date of the increases proposed by Oncor.

It’s the first step in a rate review process.

Even though the rate is technically supposed to go into effect in late April, the company anticipates it will be late 2017 before the review process is complete.

City officials’ discussion will be part of the regularly scheduled City Council meeting at 9 a.m. Wednesday in City Hall, 212 N. Bonner Ave. It is open to the public.

State law allows cities within a utilities company’s service area to suspend a rate increase for 90 days after the date it would have become effective, according to the city’s council communication.

Tyler is a member of a 156-city coalition called the Steering Committee of Cities Served by Oncor. Tyler pays a fee to be a member of the committee. The group serves as public interest advocate before the Public Utility Commission, the courts and Texas Legislature for electric utility regulation matters, the council’s agenda reads.

City Attorney Deborah Pullam said the 90 day delay will allow consultants and attorneys hired by the cooperation of cities to go through the background data for the rate increase to ensure it is fair for the customer.

“After that 90 days, the coalition will negotiate a settlement with Oncor,” Ms. Pullum said. “If they can’t, then Oncor will come back to the city and we will have to accept or deny the rates. If we deny, we will go to a hearing with the Public Utilities Commission.”

It is not a requirement that the city go through the rate contesting process, but Ms. Pullum said staff does it as a service.

“The business of rate cases is a very technical one, and the ability to be a part of a coalition allows the cities to put their resources together to get the right type of consultants and experts to review the rates and ensure they are fair for the residents,” she said. “That’s the bottom line – we want to make sure there is nothing going in that rate that is not fair for our residents.”

In other business:

– The City Council will consider a resolution that will begin annexation to bring a portion of West Cumberland, at the intersection of West Cumberland Road and Old Jacksonville Highway, into the city limits.

– Council members will discuss supporting a resolution for the city to apply for the Transportation Alternative Set-Aside Program grant through the Texas Department of Transportation, for the city’s BikeStripe project.

– Another resolution will be considered to allow the police department to participate in the Texas Automobile Burglary and Theft Prevention Authority for the East Texas Auto Theft Task Force. If approved, it would be the 25th year for the city to seek the funding.

– The city will consider canceling the elections for City Council races in District 1 and District 3, which have unopposed candidates. The city will, however, have an election in District 5 on May 6.

– Council could also approve an ordinance denying the change in sanitary sewer rates requested by Liberty Utilities, also known as Tall Timbers Sewer.

– The speed limit on two sections of Old Noonday Road could be increased from 30 mph to 40. Those sections are from 1st Street to Texas Highway 155, and then from Texas Highway 155 to Lake Placid Road.

– A tax abatement agreement with Trane U.S. Inc. will be discussed.

The Tyler Morning Telegraph will attend the meeting. For updates as they happen, follow @TMTFaith on Twitter.