LAS CRUCES, N.M (KFOX14/CBS4) — The New Mexico Supreme Court has upheld a decision allowing El Paso Electric to recover about $5.7 million in power costs tied to Winter Storm Uri, rejecting a challenge from the city of Las Cruces.
El Paso Electric told KFOX14/CBS4 there is “no customer impact” from the ruling because the $5.7 million has already been paid by customers.
A spokesperson said the company is still working to provide the exact timeline for when the 12-month recovery period happened and how much it amounted to on customer bills.
The ruling affirms previous orders from the New Mexico Public Regulation Commission that allowed the utility to recover costs for power used during the February 2021 winter storm.
According to the court’s opinion, Winter Storm Uri brought snow, ice and severe cold to New Mexico for several days. The opinion says natural gas prices spiked during the storm because of supply constraints.
The court’s opinion also says El Paso Electric relied in part on power from the Palo Verde Nuclear Generating Station in Arizona to keep electric service going for its New Mexico customers during the storm.
The dispute centered on how those costs were calculated and whether El Paso Electric should be allowed to pass about $5.7 million on to customers.
Las Cruces challenged the PRC’s decision, arguing regulators should have considered whether there were lower-cost options before allowing the costs to be recovered.
The Supreme Court rejected that argument, saying regulators had enough evidence to support their decision.
In a statement to KFOX14/CBS4, El Paso Electric said:
“We are pleased with the New Mexico Supreme Court’s decision, which affirms the Public Regulation Commission’s application of its rules and appropriately defers to the Commission’s expertise. The Court confirmed that the City of Las Cruces did not meet its burden of proof and that the PRC acted within its authority in allowing recovery of Winter Storm Uri costs. This outcome reinforces the importance of regulatory certainty and recognizes that El Paso Electric’s diverse generation portfolio helps ensure reliability for our customers, even during extreme weather events.”
KFOX14/CBS4 followed up with El Paso Electric asking how much customers’ bills could rise as a result of the ruling.
A spokesperson responded, saying:
“There is no customer impact. This decision stemmed solely from the City of Las Cruces disagreeing with the NM PRC’s decision, which the NM Supreme Court affirmed was within the PRC’s authority.”
KFOX14/CBS4 then asked whether the $5.7 million in costs had already been paid by customers, when the 12-month recovery period began and how much it amounted to on customer bills.
El Paso Electric confirmed the costs have already been paid. The company said it is still working to provide the exact timeline and amount customers paid on their bills.
KFOX14/CBS4 also reached out to the city of Las Cruces for comment on the ruling but has not yet heard back.
RECOMMENDED: Las Cruces Diocese removes priest amid investigation into stolen records
RECOMMENDED: New Mexico DOJ data: Shell-casing tracking links shootings in Doña Ana County
Sign up to receive the top interesting stories from in and around our community once daily in your inbox.