Thomas Mercado, a utilities attorney who has represented Lewisville and its predecessor clients for more than two decades, briefed the Lewisville City Council on state and regional regulation of electric and gas utilities and the practical role cities play in rate and reliability matters. Mercado explained the legal split between competitive generation and retail suppliers versus the ‘‘wires’’ companies that own transmission and distribution, and he described how cities retain original jurisdiction over local distribution service while the Public Utility Commission of Texas (PUC) and Railroad Commission have appellate or exclusive jurisdiction in some areas.

Why the briefing mattered, Mercado told council members, is ‘‘twofold: we want reasonable prices for our citizens, for our businesses, for our industry, and we want reliable service. We want the lights to be on when we flip the switch.’’ He outlined the historical arc from locally regulated, vertically integrated utilities to partial retail deregulation under SB 7 (1999) and the ongoing regulatory differences that leave wires companies subject to PUC and city regulation while generation and some retail services are competitively priced.

Mercado described the role of the Electric Reliability Council of Texas (ERCOT) in maintaining grid reliability, facilitating the wholesale market and retail competition, and setting stakeholder rules. He said Lewisville is a member of several coalitions and that city membership in ERCOT (including the $100 membership) and in city steering committees gives the municipality representation on technical committees that set market rules. ‘‘For a pretty modest amount of $100, you’re able to have voting strength,’’ Mercado said. He recommended the council renew ERCOT membership by the fall deadline so the city remains eligible to elect city representatives to ERCOT committees.

Mercado also reviewed natural-gas regulation. He said cities retain original jurisdiction over gas service rates and that the Railroad Commission has appellate authority. He described Texas’s Gas Reliability Infrastructure Program (GRIP), enacted to let gas utilities seek expedited cost recovery for system replacement, and the industry’s negotiated alternative in many cities—the Rate Review Mechanism (RRM)—which allows annual, limited filings and gives cities an opportunity to review and negotiate disallowances. ‘‘This year Atmos asked for $245,000,000 systemwide; we were able to reduce that to about $205,000,000,’’ Mercado said, noting the city coalitions’ role in discovery and settlement negotiations.

Mercado summarized the main groups Lewisville participates in: the TNMP cities coalition (for TNMP/TNMP-area rate and regulatory issues), the Encore City Steering Committee (ENCORE customers), the Atmos Cities Steering Committee (ACSC) for gas RRM proceedings, the Texas Coalition for Affordable Power (TCAP) aggregation for municipal electric loads, and an ad hoc CoServ cities group. He urged continued city participation in those groups because the legal statute allows cities to recover reasonable participation costs in rate-making proceedings and those interventions often reduce rate requests or protect city interests.

Council members asked about timing and process: Mercado described statutory suspension periods and the typical procedural steps when a wires company or a gas utility files a rate case (35‑day minimum effective date, option to suspend up to 90 additional days, settlement negotiation windows, and appeal procedures to state agencies). He recommended the city keep using consultants and coalition counsel on large cases and to continue using suspended effective dates to preserve settlement options.

Mercado closed by offering to provide a short summary card for council members and reiterated his availability for follow-up questions on franchise, right-of-way, or rate matters. "We know you have a lot on your plate and don't expect you to be experts in gas and electric utility regulation. Because you participate in these groups, you can pick up the phone or send me an email anytime — I'm happy to work you through the process," he said.

The presentation was informational; no council action was taken at the meeting.