EL PASO, Texas (KFOX14/CBS4) — El Paso city leaders have approved a move aimed at giving the city more power to push back quickly when electric and natural gas companies seek changes that could raise customers’ utility bills.
The El Paso City Council approved a measure allowing the City Attorney’s Office to respond more quickly when utility companies seek approval for projects, rate increases or other changes that could affect what residents and businesses pay for electric and natural gas service.
City officials said the action is intended to help protect customers from unnecessary costs by ensuring the city can participate early in regulatory decisions. Utility companies may ask regulators to approve rate increases, recover the costs of major infrastructure projects or build new facilities — decisions that can directly affect customer bills. The city said the faster-response authority will help it review those requests, challenge unreasonable costs and advocate for customers before decisions are finalized.
Every dollar added to a utility bill matters for families and businesses. As utility filings become more frequent and increasingly complex, the City must be prepared to respond quickly and effectively,” Mayor Renard U. Johnson said. “This action strengthens our ability to protect El Paso ratepayers, challenge unreasonable costs, and ensure our community has a strong voice before decisions affecting utility bills are made.
The city said its advocacy has already helped protect El Paso ratepayers from tens of millions of dollars in proposed utility cost increases. In recent cases, the city’s participation helped secure a reduction of approximately $50 million from an approximately $85 million requested electric rate increase, helped avoid an estimated $15 million to $20 million in additional customer costs, and contributed to a $20 million reduction in a proposed electric system resiliency investment. The city also said it has helped secure additional customer protections, including capital cost caps and minimum production guarantees for major infrastructure projects, while improving utility accountability throughout the regulatory process.
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City officials said faster action is important because many utility decisions are made under strict deadlines. Texas law gives cities a role in reviewing many utility requests before they move to state regulators, and the city said it has participated in more than 40 electric and natural gas regulatory proceedings over the past several years. Those filings have become increasingly frequent and complex, often with short deadlines for cities to respond.
The authority approved by City Council allows the City Attorney’s Office to initiate intervention in regulatory proceedings when needed so the city does not miss opportunities to represent local customers.
When utilities seek approval for projects or rate changes, they often work under tight deadlines and involve millions of dollars in proposed costs,” City Attorney Karla Nieman said. “This action allows the City to move quickly, bring in independent engineering, financial, and regulatory experts when needed, and make sure El Paso customers have a strong voice before decisions that affect their utility bills are made.
The city said the authorization applies to a range of electric and natural gas matters, including requests for new utility infrastructure, rate increases, interim cost recovery and other proceedings that could affect El Paso customers.
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