EL PASO, TEXAS (KFOX14/CBS4) — El Paso city leaders are continuing their fight against approved rate increases by both El Paso Electric and Texas Gas Service, seeking a rehearing from the Public Utility Commission of Texas and appealing a decision by the Railroad Commission of Texas.

City Council on Monday voted to authorize the city attorney to ask the Public Utility Commission of Texas to take another look at the rate increase from El Paso Electric.

City officials said they want to make sure customers receive full credit for outside transmission revenues and to protect residential customers from larger bill increases.

This move comes after the Public Utility Commission of Texas approved an amended proposed rate increase last month

While El Paso Electric’s initial proposal was to raise rates by 23%, which would raise the average residential bill by about $22 a month, the Public Utility Commission of Texas reduced part of the request to about $14.

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

City Attorney Karla Nieman said the city is still waiting on a complete set of orders from the commission.

“We haven’t received a complete set of orders from the utility commission. We expect they will issue an order in the next couple of weeks, so probably in April is when our deadline for filing an appeal will happen,” Nieman said.

If the city files for a rehearing, the Public Utility Commission of Texas will either grant or deny the request.

Meanwhile, the city attorney also plans to appeal the Railroad Commission of Texas’s decision on the Texas Gas Service rate increase.

This allows the city to pursue judicial review of the commission’s final order and ask the courts to determine whether the decision complies with state law and is supported by the record.

According to the rate hike, average homes may see their bills rise by about 10%, increasing by about $3 to $4 per month, while larger homes could see their monthly bills rise by 19%, or about $11.

The city has opposed Texas Gas Service’s efforts to increase rates and consolidate customers into uniform statewide pricing, citing concerns about long-term cost shifting and impacts to El Paso ratepayers.

“Our vote and authorized action reflect what we have heard from residents,” Mayor Renard Johnson said. “People want a fair process and a fair outcome. We are requesting a rehearing, and we are prepared to appeal the RRC’s decision because we do not believe El Paso ratepayers should be asked to carry costs that do not belong to them.”

Texas Gas Service initially filed its rate request last June. On July 21, 2025, the City Council voted to suspend the proposed rate increase for 90 days to allow for review and analysis.

On Oct. 27, 2025, the council directed staff to schedule a public hearing and authorized settlement negotiations. Following a public hearing, the council voted Nov. 17, 2025, to deny the proposed rate increase under the city’s original jurisdiction.

The Railroad Commission of Texas issued its final order in the case last month. The city’s motion for rehearing followed a council vote last month authorizing the city attorney to file a motion for rehearing with the Railroad Commission of Texas. A decision on that rehearing request is still pending.

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