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Kennedale council unanimously adopts resolution denying Encore Electric Delivery's proposed rate changes
Summary
Kennedale City Council approved a resolution to deny Encore Electric Delivery Company LLC's proposed increase in revenue and changes to rates; staff recommended denial and council noted similar actions by neighboring municipalities.
The Kennedale City Council on Oct. 21 adopted a resolution denying Encore Electric Delivery Company LLC's proposed revenue increase and rate changes, voting unanimously to reject the utility's filing.
City staff told the council they recommended denial and said the action is intended to return the parties to the negotiating table. When asked what follows a denial, staff replied it "basically allows for negotiation of a better deal by denying the deal that's proposed and we go back to the negotiating table." The meeting record notes that other nearby municipalities were also expected to deny the proposed changes during the same week.
During discussion a speaker referred to a projected revenue increase figure cited in the broader municipal conversation: "it's projected that it'll be the rate that they're offering will increase their revenue by 8,000,000,000," a figure stated in the meeting transcript. The council did not provide an independent calculation during the meeting.
A motion to approve the resolution to deny Encore's proposal was made and seconded; the motion passed unanimously, 4-0. Council did not set a subsequent hearing date during the meeting and staff indicated the denial is intended to reopen negotiations with the utility.
