EL PASO, TEXAS (KFOX14/CBS4) — El Paso city leaders are moving to take a formal role in a new state regulatory case that could affect how much local customers pay for electricity as demand grows from large data centers.
The El Paso City Council has authorized the City Attorney’s Office to intervene in a new proceeding before the Public Utility Commission of Texas involving proposed changes to El Paso Electric’s Economic Development Rate for data centers. The council action allows the city to intervene in the case, retain outside legal counsel and technical experts as needed, and advocate for protections aimed at ensuring residential and business customers are not asked to subsidize costs associated with serving large, high-energy users.
El Paso Electric is seeking approval to amend its existing Economic Development Rate for data centers. 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 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. As part of its review, the city will also evaluate whether the proposed rate structure aligns with related utility tariffs for large-load customers and includes adequate protections to prevent costs from being shifted to other ratepayers.
“El Paso families and businesses should not bear unnecessary costs associated with serving individual large-load customers,” City Attorney Karla Nieman said. “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.”
City officials emphasized the proceeding is separate from other pending utility cases involving transmission infrastructure, electric generation facilities, or other proposed rates and tariffs, and 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 said it 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.
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 said it 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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