The council is expected to give final approval to a resolution that would effectively suspend the rate increase — which totals more than $270 million — and spur an investigation into the necessity of the rate increase.
“We have until Aug. 8 to suspend that rate increase or it will go into effect,” City Finance Director Peggy Walker told the council two weeks ago. “This resolution will take care of that. We will hire a legal consultant, a legal representative to review the rate to determine if it's necessary and if it's reasonable. If it's not, we'll go forward with them through negotiations with the steering committee, which we are a member of.
“The overall increase is about $275 million. We have built into our rate case through the steering committee that all rate case related costs will be absorbed by Oncor. So all costs associated with this suspension will be reimbursed to the city,”
Mayor Russ McEwen recently expressed his frustration over the proposed rate increase, claiming the majority of similar requests the city receives are over-inflated.
“It is so frustrating that we can't have people we do business with that we trust and will give us an (honest) rate increase. They ask for this much,” said McEwen, stretching his arms out wide, '”wanting this much,” he added, bringing his hands close together. “It really is frustrating.”
The council approved first reading of the measure by a unanimous vote.
Also during Tuesday's meeting, the council will consider: