(July 15, 2008)—Electric transmission and distribution company Oncor is seeking a 2.7 increase in rates, but some local officials question whether the rate hike is justified.
The increase would mean about $5.09 more a month for an average residential customer, Oncor said.
Electric providers typically pass delivery rates on to consumers, Oncor said.
"Times are tough and you just don't want to take lightheartedly and pass on a rate increase like that to your citizens without checking and make sure that it's totally justified," Killeen City Manager Connie Green said.
Cities that still have jurisdiction over rates have the option of approving the request, denying it--which sends it to the Texas Public Utility Commission--or suspending it, which gives cities 90 days in which to negotiate with Oncor.
Some area cities are banding together to vote to suspend the request.
"We have 90 days and then the steering committee will make a recommendation and do some negotiations with Oncor and whatever they settle on or agree to then they'll bring it back to the cities for us to actually adopt," Harker Heights Finance Director Alberta Barrett said.
Temple is expected to deny the request completely on Thursday, sending the rate increase proposal to the PUC.
"Oncor intends to take the entire thing to the PUC and just have one big appeal, but the PUC at that point will be the determiner of what the rates would be," Killeen Deputy Attorney Traci Briggs said.
Green says more than likely there will be some sort of increase, but hopes by banding together, cities can keep any costs passed on to residents to a minimum.
"I think it will send a message to the Public Utility Commission that the cities are concerned,” Green said.
Oncor hasn’t had a rate review since 2001,
“Oncor understands that these are difficult economic times for all Texans,” said Bob Shapard, Chief Executive Officer of Oncor, as the company announced plans to seek the increase.
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