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Heath council suspends Encore rate increase for 90 days, authorizes legal intervention
Summary
The Heath City Council voted unanimously July 22 to adopt Resolution 250722A to suspend Encore Electric Delivery Company LLC's proposed rate increase for 90 days while the city joins a coalition and pursues review at the Public Utility Commission of Texas.
The Heath City Council voted unanimously July 22 to suspend the effective date of Encore Electric Delivery Company LLC’s proposed rate increase for 90 days and to authorize legal representation and regulatory intervention.
City legal counsel Jay Ayers introduced the resolution, saying Encore proposed a rate increase on June 26 with an intended effective date of July 31, 2025. "The total increase is roughly $833,000,000. That's a 13% increase, and the residential impact is approximately $7 a month," Ayers said during the council presentation. He told the council the suspension would preserve the city's jurisdiction to negotiate or intervene and would be effective for 90 days if adopted.
The resolution directs the city to join the alliance of Encore cities already negotiating the request, to intervene in any Public Utility Commission of Texas proceedings, and to retain outside special counsel (Harrah Law and Associates was identified as the intended firm). Ayers told the council the legal and consultant fees would be reimbursed by Encore through the coalition arrangement, and that adoption would have no immediate financial impact on the city.
Council members asked staff about precedent and outcomes of prior suspensions. Council members noted the city used the same procedural step last year and asked whether settlements were typical; Ayers said settlements or negotiated reductions were common outcomes but that the process could ultimately proceed to the PUCT if negotiations failed. Council discussion included whether Encore seeks annual adjustments; staff said the filings are regulatory and can recur as market and cost-recovery needs change.
The motion to adopt Resolution 250722A was made by Councilman Elenby and seconded by Councilman Myers. The motion passed unanimously.
The resolution preserves the council’s ability to contest the proposed increase and to participate in the coalition pursuing a negotiated outcome or a formal PUCT review. The council did not direct any immediate local rate changes.
