PRESS RELEASE – On August 19, 2011, the Public Utility Commission of Texas approved at an open meeting the settlement terms contained in the Modified Stipulation filed by Oncor Electric Delivery Company LLC with respect to the settlement of Oncor’s previously filed rate review.

The rate review was filed in January 2011 with the PUCT (PUCT Docket No. 38929) and 203 cities based on a test year ended June 30, 2010. The PUCT, with Oncor’s input and that of cities and other participating parties, established a procedural schedule for the review. On April 8, 2011, Oncor filed, and the administrative law judges in the rate review granted, a motion requesting abatement of the procedural schedule in the rate review on the grounds that Oncor and the parties to the rate review had reached a Memorandum of Settlement that would settle and resolve all issues in the rate review. On May 11, 2011, Oncor filed a stipulation which incorporated the Memorandum of Settlement (the “Stipulation”) along with proposed tariffs and other documentation for the purpose of obtaining final approval of the settlement. The terms of the Stipulation include an approximate $137 million base rate increase and additional provisions to address franchise fees (discussed further below) and other expenses. Approximately $93 million of the increase became effective July 1, 2011 (on an interim basis), and the remainder will become effective by January 1, 2012. The Stipulation did not change Oncor’s authorized regulatory capital structure of 60% debt and 40% equity or its authorized return on equity of 10.25%. Under the terms of the Stipulation, Oncor cannot file another general base rate review prior to July 1, 2013, but is not restricted from filing wholesale transmission rate, transmission cost recovery factor, distribution-related investment or other rate updates and adjustments permitted by Texas state law and PUCT rules.

Read the full press release “SEC Filing: Public Utility Commission of Texas Approves $137M Base Rate Increase for Oncor Electric