Oncor Files New Rate Case, Seeks Rate Increase

Oncor Files New Rate Case, Seeks Rate Increase

Mar 20, 2017

by Margarita Fournier; Copyright 2016 by Competitive Assets, LLC.  All rights reserved

On 3/17/17, as expected, Oncor filed its rate case in PUC Docket No. 46957, Application of Oncor Electric Delivery Company LLC for Authority to Change Rates. Asserting that it had made significant investments in new transmission facilities, the company claims that it is not recovering its full costs and seeks an additional $317 million – or a 7.5% increase for transmission and distribution rates. Oncor’s last rate case was filed several years ago, with 2010 as the test year. In this case, Oncor is using 2016 as the test year, and proposing 4/21/17 as the effective date for the new rates. The filing came at the urging of some of the Cities Served by Oncor, and relates to the ongoing acquisition case of Oncor by NextEra (Docket No. 46238). Not all parties to the acquisition case favored a speedy filing of a rate case – with some proposing to wait until 2020-2022. Last October, in Project No. 45636, the PUCT staff found that Oncor’s 2015 Return on Equity (ROE) of 10.1% was excessive, but made no recommendation, given the complexities of its parent’s bankruptcy case. (Also, some issues in Oncor’s earlier rate case (Docket No. 35717) have been remanded to the PUCT by a court (Docket No. 46884)).

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