Irving discusses suspension of Encore delivery rate increase; council to let coalition negotiate
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Summary
Council discussed a resolution to suspend the effective date of an Encore Electric Delivery Company rate filing that would raise residential delivery rates about 12.3% and street lighting rates by ~51%; staff said the city is part of a 170‑city coalition and will work with outside counsel and consultants to challenge and negotiate the request.
Irving city officials on July 10 described a pending rate case filed by Encore Electric Delivery Company that requests a change to distribution (delivery) rates, including a 12.3% average residential increase and a much larger proposed increase to street lighting rates.
City attorney and staff overview: City legal staff explained that the city retains regulatory jurisdiction over Encore's distribution rates within Irving and that Irving participates in a coalition of about 170 cities that collectively retain outside counsel and consultants to review and negotiate utility rate filings. City legal counsel noted Encore's filing includes a 12.3% residential distribution increase, which the company estimated would increase an average residential bill by roughly $8 per month, and a separate request that would raise street‑lighting charges by about 51 percent.
Potential fiscal impacts: Staff estimated the street‑lighting increase could substantially raise the city's monthly street‑lighting bill; one staffer said the community's exposure could be "about $250,000 to $300,000 per month" for the service area, and that Irving pays for roughly 14,000 streetlights. Legal staff said Lloyd Gosselink (outside counsel) and retained consultants would review the company's justification and that negotiations often produce a negotiated settlement lower than the initial request.
Council action described in the packet and discussion The work session agenda identified a resolution to suspend the effective date of Encore's proposed rate change to permit the city time to study the request and coordinate with the coalition. Staff explained the typical procedural mechanics: if the city suspends the proposed effective date, there is a statutory suspension window (commonly 90 days, though Encore can seek extensions) during which negotiations and technical review occur; staff said the packet's proposed resolution authorizes the city to join coalition attorneys and consultants in the review and negotiation.
No final settlement or council vote on a negotiated rate was recorded in the transcript. Staff said they will return to council with updates as negotiations proceed and with any settlement or recommended rate ordinance for council approval.