The city is continuing to push back against El Paso Electric’s plan to raise rates.
Administrative Law Judges issued a Proposal for Decision in the ongoing back-and-forth between the city and EPE, the city announced in a news release Monday, Dec. 15. That decision “would scale back key parts of the utility’s request.”
“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 in the release. “Our priority is straightforward. We remain committed to protecting customers and supporting rates that are fair, justified, and transparent.”
Administrative Law Judges were called in by the city — for the first time in over 30 years — after EPE refused to budge on its plan to raise rates by $93 million, a monthly increase of roughly $22.39 for the average residential customer.
Members of the community and Sembrando Esperanza Coalition meet near the El Paso Electricity building to discuss the rising electricity prices in El Paso, Texas in the Aztec Calendar Park at noon on July 30, 2025.
What’s in the Proposal for Decision?
The Proposal for Decision issued by the Administrative Law Judges makes the following recommendations, according to the city news release:
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.
More: El Paso Electric proposes $41.8 million rate increase, with big boost in residential bills
What’s next?
The Proclamation of Decision issued by the judges will not be final until the Public Utility Commission of Texas issues a final order in January 2026.
“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 news release stated. “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.”
Adam Powell covers government and politics for the El Paso Times and can be reached via email at apowell@elpasotimes.com.
This article originally appeared on El Paso Times: Judges urge cuts to El Paso Electric’s $93 Million rate plan