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 last year 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, on Friday, commissioners changed parts of the proposal that benefited the utility, ultimately approving a rate increase.
How much the rates will increase is still unclear, as the official rates have not yet been finalized.
However, according to the City of El Paso, the typical resident is expected to pay about $13.71 per month, rather than the $22.39 per month associated with El Paso Electric’s original proposal.
But the city states that the final bill will not be confirmed until PUCT staff issues the implementing details needed to calculate customer rates.
Meanwhile, among the changes to the proposed decision, the company’s investment rate of return 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, “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 quote, “We did not get everything we advocated for, but this decision secured key saving 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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