By Dallas Business Journal

Oncor Electric Delivery Co. is considering a residential rate increase to help pay for infrastructure investments and costs stemming from storm restoration, employee pensions and health care reform, the firm said Friday.

The Dallas-based electricity transmission company filed a rate review with the Public Utility Commission of Texas this week, proposing a rate hike for residential customers that would raise $350 million in new revenue.

Under the proposal, customers who use 1,300 kilowatt-hours per month of electricity will pay 10.4 cents instead of 10 cents per kwh, increasing their monthly bills by $5. Oncor says current rates are based on 2007 cost levels.

⿿We take rate increases very seriously and work hard to avoid or mitigate the need for an increase. Our filing demonstrates that Oncor has been diligent in managing our costs for years, which is why we have the lowest rates in the state,⿝ said Charles Jenkins, chief operating officer. ⿿The proposed new rates reflect both the investments we⿿ve made and the cost controls we⿿ve put in place, including recently refinancing a portion of our debt at lower interest rates and passing those savings on to customers.⿝

In the past two years, Oncor has spent $2 billion to restore aging distribution systems and to bring service to new areas.

Copyright 2011 American City Business Journals

http://www.bizjournals.com/dallas/news/2011/01/07/oncor-considers-rate-increases.html?ana=thestreet
Copyright bizjournals.com 2010