EL PASO, Texas (KTSM) — The City of El Paso says it is continuing to fight for a “more reasonable” rate increase from El Paso Electric.

Administrative law judges, who have heard testimony in the case, have issued a “Proposal for Decision” that would scale back key parts of the utility’s request, if adopted by the Public Utility Commission of Texas (PUCT), the City of El Paso said.

Judges in El Paso Electric rate case recommend smaller rate increase, less profit for utility

El Paso Electric (EPE) is asking for a $93 million increase to its annual revenue requirement. If approved as originally filed, the City has estimated the typical residential bill would rise about $22.39 per month or about 23%.

Because EPE declined to negotiate, the City took the case through a contested hearing before the administrative law judges for the first time in more than 30 years, the City said in a news release. The “Proposal for Decision” reflects the evidence presented in that process.

“This recommended decision shows the request is being closely examined, and it reinforces why the City has pushed for a careful, evidence-based review from the start,” City Attorney Karla Nieman said. “Our priority is straightforward. We remain committed to protecting customers and supporting rates that are fair, justified, and transparent.”

The Proposal for Decision recommends:

Lower profit allowance: 9.4% return on equity instead of 10.7%

No rooftop solar minimum bill changes: keep the current minimum bill in place pending further review

Cost sharing of Newman 6 power plant: EPE requested Texas ratepayers pay the full $217 million costs; the recommendation is that New Mexico rate payers share some of the costs

The recommendation is not final, the City said. The City is reviewing it with technical experts and will continue participating in the remaining steps before the PUCT issues its final order.

The mayor and City Council “have remained engaged throughout the rate case, including receiving briefings and discussing the litigation strategy in Executive Session as allowed under the Texas Open Meetings Act,” the City said.

In the past, the City’s work in utility cases has helped deliver approximately $189 million in rate relief over the last six cases, and the City remains focused on protecting El Paso ratepayers in this proceeding, it said.

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