EL PASO, Texas (KTSM) — The El Paso City Council authorized on Monday, March 2 to have the city attorney file a motion for a rehearing in the El Paso Electric rate case.

The City is also seeking a rehearing in a rate case with Texas Gas Service.

El Paso Electric rates set to rise following PUCT approval

In the El Paso Electric rate case, the council directed the City Attorney’s Office to file a motion for a rehearing to seek reconsideration on key issues that “could further reduce customer impacts and ensure rates are fair and supported by the evidence,” the City said.

In February, the Public Utility Commission of Texas (PICT) took action on EPE’s request. While the commission reduced part of EPE’s original request for increased rates, final estimates on how much more customers will pay haven’t been determined yet, the City said. That still depends on a final PUCT order and implementation details, the City added.

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The City’s motion for a rehearing will focus on two issues that can meaningfully affect customer bills, the City said:

Federal Energy Regulatory Commission (FERC) Transmission Revenue Credits

EPE receives revenues from other entities outside of the City of El Paso. Those revenues are credited back to local retail customers which can reduce the amount collected from customers through rates. The City is asking the PUCT to reconsider its treatment of FERC Transmission Revenue Credits to ensure customers receive the appropriate benefit and lower bills as much as possible.

Rate Increase to Residential Class (Class Cost Allocation)

EPE filed this case requesting that all rate classes, including the residential rate class, should pay the full cost of providing service to each customer class. The City will ask the PUCT to reconsider its decision affecting the residential rate, because this change will have a “great impact on the residential customers.”

“We are using every step available to push for the strongest customer protections possible and to make sure customers receive the full benefit of credits and allocations that can reduce bills,” said City Attorney Karla Nieman.

The PUCT will consider the motion at a public meeting and determine whether to grant or deny a rehearing or modify its order. The City Attorney’s Office will continue defending the case and will brief the mayor and City Council as updated rate impacts, rate tariffs, and procedural milestones become available.

Here is some background, as provided by the City.

In January 2025, EPE filed its general rate case seeking a $93 million increase to its annual Texas retail revenue requirement, a request that was more than double the amount EPE initially sought in its last general rate case in 2021.

As originally filed, EPE’s proposal would have increased the typical residential bill by about $22.39 per month, or about a 23% increase.

Under state law, the City of El Paso has original jurisdiction over electric rates in EPE’s Texas service area. However, the final determination under state law rests with the PUCT, the City said.

After the City held a local public hearing, El Paso City Council voted last June to deny EPE’s proposed increase at the local level. The case then proceeded through the state process at the PUCT, where the City continued to participate and advocate for residents and businesses.

EPE has sought under state law to have the new rates apply retroactively to July 1, 2025, even though a final order has not been approved by the PUCT and the new rates are not yet in effect, the City said.

In August 2025, the case was heard in a formal contested case hearing before administrative law judges (ALJs). In December 2025, the ALJs issued a proposal for decision recommending reductions to EPE’s request. On Feb. 20, the PUCT took action on the case and approved a modified version of the ALJs’ recommendation.

While the PUCT’s action “scaled back critical parts” of EPE’s original filing, final bill impacts have not yet been determined or confirmed because additional implementing details are still needed to translate the PUCT’s decisions into final rates, the City said.

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