El Paso City Council intervenes in second El Paso Electric rate hike request this year
EL PASO, Texas (KFOX14/CBS4) — The El Paso City Council voted unanimously to intervene in El Paso Electric’s request to amend its Generation Cost Recovery Rider to include the costs of its Texas Solar One generation facility, marking the second time this year the city has intervened in a rate increase request filed by El Paso Electric.
In February 2025, city officials said the city intervened in El Paso Electric’s proposed $93 million rate increase.
El Paso Electric seeks approval to recover approximately $120.4 million invested in the Texas Solar One facility, a 150 MW solar generation project near Fabens, Texas, set to begin operations by late August 2025.
If approved by the Public Utility Commission of Texas, the GCRR amendment will result in an annual increase of $13.4 million for Texas retail ratepayers, with residential customers seeing an average monthly increase of $2.11.
Under the GCRR, El Paso Electric is allowed to recover the costs of new electricity generation facilities through a separate line item charge on customer bills, bypassing the general base rate process.
Once the new Texas Solar One generation facility begins providing service, El Paso Electric intends to file an updated request at the end of 2025 to account for the full cost of the facility. This request will likely further impact rates and will be reviewed by the City and other intervenors to ensure any proposed costs passed on to ratepayers remain fair.
The city’s intervention in El Paso Electric’s proposed $93 million rate increase, initiated in February 2025, is ongoing. The increase is broken into two parts: $85.7 million for general rates and $7.3 million for a retiring plant rider.
If approved, the rate hike would result in an average monthly increase of $22.39 for residential customers, or a roughly 23 percent increase in their monthly electric bill.
With the ongoing $93 million rate increase proposal and the new request for the Texas Solar One facility, the combined impact could lead to a total monthly increase of approximately $24.50 for residential customers,” said Karla Nieman, City Attorney. “Our goal is to ensure any rate adjustments are fully justified, transparent, and in the best interest of the community. We will continue to collaborate with experts to ensure that the utility’s investments align with the needs of our residents.
In response to concerns from residents, the El Paso City Council requested that EPE host a series of community meetings.
City officials said they will continue to monitor both rate increase proposals, with final decisions expected by the end of 2025.
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