The Coppell City Council approved two resolutions Tuesday denying proposed applications from Oncor and the Texas-New Mexico Power’s requests to increase distribution rates in the city and ask for additional funding.
Deputy City Manager Vicki Chiavetta said Oncor was asking for around $98 million in funding with Texas-New Mexico Power requesting around $14 million. Most of Coppell is powered by Oncor and a small portion of Coppell’s northern boundary utilizes Texas-New Mexico Power.
Chiavetta said the distribution cost recovery factor is an interim rate adjustment allowed by the Texas statute, which permits electric utilities to use new rates. She added the resolution states the both Oncor and Texas-New Mexico Power’s requests are “unreasonable” and that they should reimburse the city for reasonable rate expenses.
Coppell, along with the other cities in the coalition powered by Oncor, will evaluate the filings to determine what the next steps should be.
Chiavetta said since 2011 this request has been brought before council three times prior. While these requests are usually approved, she said city attorneys will check and make sure the money requested is reasonable and that some type of reduction occurs.
The last case brought before the Coppell City Council saw the requested funds fall from $76 million to $70 million.