EL PASO, Texas (KTSM) — The El Paso City Council has authorized the City Attorney’s Office to intervene in a new regulatory proceeding involving proposed changes to El Paso Electric’s Economic Development Rate for data centers.
The action allows the City to intervene in the case, retain outside legal counsel and technical experts as needed, and advocate for protections to help ensure residential and business customers are not asked to subsidize costs associated with serving large, high-energy users, the City said.
El Paso Electric is seeking approval from the Public Utility Commission of Texas to amend its existing Economic Development Rate for data centers, the City said. The rate was established through a previous settlement agreement and was required to be reviewed following the company’s most recent base rate case, the City added.
The City said it will evaluate whether the proposed changes comply with the previous settlement terms and include sufficient protections for customers who do not benefit from the special rate.
“El Paso families and businesses should not bear unnecessary costs associated with serving individual large-load customers,” said City Attorney Karla Nieman. “The City has consistently advocated for strong ratepayer protections, and this intervention ensures El Paso has a seat at the table as these important decisions are made.”
As part of its review, the City will evaluate whether the proposed rate structure is consistent with previous settlement terms, aligns with related utility tariffs for large-load customers, and includes adequate protections to prevent costs from being shifted to other ratepayers.
This proceeding is separate from other pending utility cases involving transmission infrastructure, electric generation facilities, or other proposed rates and tariffs, the City said. The City evaluates each regulatory proceeding independently to determine whether participation is necessary to protect the interests of El Paso residents and businesses.
The City has participated in multiple Public Utility Commission proceedings involving El Paso Electric, including cases related to electric rates, transmission and generation projects, cost recovery, and proposals involving data centers and other large-load customers.
These efforts are part of the City’s “ongoing commitment” to protecting ratepayers from “unreasonable” utility costs and ensuring regulatory decisions are fair and in the best interest of the community, the City said.
The Public Utility Commission will establish a procedural schedule for the case, including opportunities for testimony and review before a final decision is issued. The City will actively participate and advocate for El Paso ratepayers throughout the proceeding, while the Public Utility Commission of Texas will make the final decision on the proposed Economic Development Rate changes.
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