El Paso families may soon be paying more to keep the lights on.
Just weeks after the Texas Railroad Commission approved a rate hike impacting Texas Gas Service customers, the Public Utility Commission of Texas has now approved an amended rate increase for El Paso Electric. And as you can imagine, many El Pasoans are not thrilled.
READ MORE: TEXAS GAS RATE HIKE APPROVED BY TX RR COMMISSION
What Was Originally Proposed
El Paso Electric initially asked regulators to approve a 23% rate increase. That proposal would have raised the average residential electric bill by about $22 per month and generated roughly $93 million in additional annual revenue for the utility.
The company said the increase was necessary to recover about $1.55 billion it has invested in infrastructure since 2020 to improve reliability and support regional growth. They also requested a 10.7% return on equity.
What Was Actually Approved
During Friday’s open meeting, the Public Utility Commission amended parts of the proposal, reducing the overall increase.
According to the City of El Paso, a known portion discussed would translate to about $13.71 per month for the average residential customer instead of the originally proposed $22.39. However, officials stress that the final monthly impact is still unclear. The official rates have not yet been finalized, and El Paso Electric says the $13.71 figure may not reflect the full impact once everything is calculated.
The Commission also adjusted the company’s allowed rate of return. Instead of the 10% range requested, the new investment rate of return was set at about 9%, and the return on equity increased slightly from 9.35% to 9.4%.
What Officials and Residents Are Saying
El Paso Electric President Kelly Tomblin said the amended rate does not fully cover the cost of building, operating, and maintaining infrastructure. She warned that a lower return on equity could make it harder to fund future investments and support long-term economic development in the region.
The El Paso City Attorney, however, framed the decision as a partial win for residents, saying the city’s involvement helped scale back major portions of the original request and secure key savings.
On the ground, residents are focused on something much simpler: their monthly bills.
Once the final order is signed and filed, customers will know exactly how much more they will be paying. For now, many in El Paso are bracing for another bump in household expenses at a time when costs across the board are already rising.
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