El Paso City Council to receive update from El Paso Electric's proposed rate hike
EL PASO, Texas (KFOX14/CBS4) — The Paso City Council is set to receive an update from El Paso Electric regarding its proposal to change customer rates at Monday’s Work Session.
This follows the city’s decision in February to intervene and halt the utility’s plan, which was initially announced in January.
El Paso Electric filed a rate review proposal with the Public Utility Commission of Texas on January 27, 2025, aiming to increase average customer bills by approximately $23.
The city expressed concerns that the rate hike would impact various customer classes.
According to El Paso Electric, the process for the rate change takes about a year, with a decision from the Public Utility Commission of Texas expected by the end of 2025. If approved, customers could see the increase by early 2026.
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The utility company stated it has invested $1.55 billion to adjust to the city’s residential, industrial, and commercial growth. Some of the investments include new poles, transmission lines, and other infrastructure upgrades, which replaced aging infrastructure and are better equipped for extreme weather conditions.
Mayor Renard Johnson, voiced his concerns in January, stating, “I am deeply concerned about this proposed increase, as it could place a substantial burden on all El Pasoans.
The preliminary estimates are significant. I will take every necessary step to ensure that our residents’ interests are protected throughout this process.”
El Paso Electric CEO Kelly Tomblin emphasized the long-term benefits of the proposed rate increase, saying, “In the short term, we feel a little pain, but if we do it right, and we get the C&I customers, we build our businesses, overall, we’ll take the pressure away from our residential who are bearing the cost of infrastructure investment.”
Tomblin added, “I think once they look at our documents of what we’ve invested in and what we are suggesting that we need to invest further, I think that vision is compelling. And while they might not enjoy a rate increase, I do think that they’ll enjoy the vision.”
The company is working with City Council to host more community meetings to inform the public about the proposal and has programs in place to assist qualifying customers financially with the impact of the rates.
The City Council Work Session is happening Monday at 9:05 a.m. at City Hall and virtually.
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