Texas regulators approve El Paso Electric rate increase, raising bills for residents

EL PASO, TEXAS (KFOX14/CBS4) — El Paso Electric customers could soon see higher monthly bills after the Public Utility Commission of Texas approved an amended proposed rate increase on Friday.

The PUCT staff reviewed recommendations on Friday for El Paso Electric’s initial proposal to raise rates by 23%, which would raise the average residential bill by about $22 a month and would generate an additional $93 million annually for the utility to fund new projects.

However, during Friday’s open meeting, PUCT amended parts of the proposal, reducing the initial proposed rate increase.

But the exact monthly impact on customers remains unclear as the official rates have not yet been finalized.

According to the City of El Paso, a known portion of the increase discussed during the meeting would be about $13.71 per month, rather than the $22.39 per month associated with El Paso Electric’s original proposal, adding that the final bill is not yet confirmed until PUCT staff issues the final customer rates.

El Paso Electric, however, said that figure is not final and may not reflect the full impact on customers’ bills.

El Paso residents said the possibility of higher bills is concerning as other costs continue to rise.

“It’s already too expensive,” one woman said.

A man said, “Everything’s going up and they’ve already had increases.”

Destiny Venecia reports on Texas regulators approve El Paso Electric rate increase, raising bills for residents (Credit: KFOX14)

For customers, residents said the debate over investments and rate structures comes down to their monthly bills and household budgets.

“It just makes it harder to live,” one man said. Another woman said, “I think we’re paying for something that we’re not really using too much.”

A student added, “I hope that they put the money towards good use.”

Once the final order is signed and filed, it will spell out the official rate changes and how much more customers can expect to pay.

Meanwhile, among the changes to the proposed decision is the company’s new investment rate of return, which was set at about 9% instead of the 10% El Paso Electric initially requested.

El Paso Electric’s president, Kelly Tomblin, said in a statement that the approved amended rate does not fully cover the cost of building, operating, and maintaining infrastructure.

“While we respect the Commission’s decision, we firmly stand by our original filing that sought to recover approximately $1.55 billion in infrastructure investments that we have spent to bolster reliability and growth in our Texas service area. Our customers have depended on these investments since 2020 and the rates in place today and those proposed do not fully cover the cost of building, operating and maintaining this infrastructure.”

“Additionally, we requested a 10.7% return on equity (ROE) and received only an increase from 9.35% to 9.4% after four years, which may impact our ability to further invest in infrastructure while keeping costs fair for customers. While we understand and care about customer affordability, we also are concerned about long-term economic development. We may find it challenging to support our Texas region’s growth when the ROE remains lower than many other utilities in the state. Despite the challenges, we remain committed to finding a way to remain reliable and continue to meet the long-term needs of the communities we serve while we evaluate other regulatory options.”

The El Paso City Attorney says in part, “We did not get everything we advocated for, but this decision secured key savings for our residents and cuts back major parts of El Paso Electric’s request. The City’s participation helped drive a lower, more evidence-based outcome than what was originally proposed.”

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