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McKinney council suspends effective date of Encore Electric rate request to allow review
Summary
The McKinney City Council approved a resolution to suspend the July 31, 2025, effective date of Encore Electric Delivery Company's requested rate change so the city and a steering committee of cities can study and negotiate the proposal.
The McKinney City Council voted to suspend the July 31, 2025, effective date of Encore Electric Delivery Company's requested systemwide rate increase, giving city staff and a steering committee of cities time to review and negotiate the utility's proposal.
City Chief Financial Officer Mark Holloway said the suspension does not signal approval or rejection of Encore's request. "This resolution doesn't take a position on their request. It just gives us the time we need to review that properly," Holloway told the council during the special meeting July 22.
The resolution preserves McKinney's ability to negotiate with Encore and other member cities on the steering committee, Holloway said. He described the company's filing as a "fairly significant system wide rate hike, including higher residential and street lighting rates," and said part of the request would fund capital work "to increase the reliability of the system." Holloway added that staff usually brings a separate resolution later if an agreement is reached.
A council member asked whether the size of the proposed increase might reflect Encore's negotiation strategy and whether the additional funds were being used to strengthen the grid amid growing demand from large users such as data centers. Holloway said some of the requested increases are for capital improvements intended to improve reliability, but he did not offer an independent assessment of how effective those investments would be.
Council Member Lynch moved to approve the suspension resolution; another council member seconded the motion and the council approved it without a recorded roll-call vote. The council did not adopt a position on the merits of Encore's proposal and directed staff to continue coordinating with the steering committee.
The suspension preserves McKinney's ability to negotiate, seek more detail, or take future action after staff and the steering committee complete their review and any negotiations with Encore.
