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Commerce council votes to suspend Encore Delivery rate increase, prompting PUC review
Summary
The City Council approved a resolution to suspend Encore Delivery Companies LLC’s proposed rate increase effective July 31, 2025, for 90 days and referred the matter to the Texas Public Utility Commission hearing process with the city represented by the Texas Coalition for Affordable Power.
The City Council of the City of Commerce, Texas, voted July 15 to suspend Encore Delivery Companies LLC’s proposed rate increase effective July 31, 2025, for 90 days and to pursue the Texas Public Utility Commission hearing process.
City Manager Michael Lisenby told the council that under Texas Public Utility Commission procedures and the city’s franchise agreements with utilities, the municipality can accept or deny a utility’s rate request and, if denied, the PUC conducts a hearing. “Staff is proposing a resolution to deny the rate request and go through the PUC hearing process, and so staff recommends approval of this resolution,” Lisenby said. The council approved the resolution by voice vote.
Why it matters: a suspension forces the proposed new rates into a PUC proceeding where the commission — not the city alone — will set the final outcome. Lisenby said the city is represented in those proceedings by the Texas Coalition for Affordable Power so smaller municipalities can negotiate collectively.
Council action and next steps: the resolution suspends Encore’s proposed effective date for 90 days, triggering referral to the PUC. Encore representative Larry Willis was present but the council did not take additional conditions beyond the suspension. The PUC process will determine final rates following negotiations or a hearing.
Background and context: Lisenby explained that franchise agreements and state law establish the city’s role in initial acceptance or denial and that aggregated municipal representation through the Texas Coalition for Affordable Power gives the city greater leverage in PUC proceedings.
No further public comment was recorded on the item at the time of the vote. The PUC hearing schedule and any filings the city or Encore make in the proceeding were not specified in the council record.
