Fort Worth officials have voted to delay Oncor Electric Delivery’s proposed rate increases that would raise residential bills by 12.3% and street lighting costs by 51%.
The City Council’s resolution suspends the automatic implementation of new rates while the city reviews the changes that represent a 13% systemwide increase over present revenues, producing an estimated $834 million in additional revenue per year for Oncor.
Current rates will remain in place during the 90-day suspension period allowed under state law.
Oncor filed its rate increase application with Fort Worth and other Texas cities earlier this summer. Without council intervention, the new rates would have automatically kicked in.
The resolution authorizes the city manager to join other municipalities in hiring legal counsel and consultants to review Oncor’s proposal. These cities form the Steering Committee of Cities served by Oncor, which will negotiate directly with the utility company.
State law requires Oncor to reimburse the committee for reasonable costs associated with the rate review. This includes consultant fees and regulatory expenses incurred during the analysis.
The council’s action follows a pattern of municipal pushback against utility rate increases. Cities often use the suspension period to scrutinize whether proposed hikes are lawful and reasonable.
A public hearing will occur before the council makes its final determination on the rates. The city may then approve, modify, or reject Oncor’s request based on its findings.