LAS CRUCES, N.M (KFOX14\/CBS4) \u2014 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.<\/p>\n
El Paso Electric told KFOX14\/CBS4 there is \u201cno customer impact\u201d from the ruling because the $5.7 million has already been paid by customers.<\/p>\n
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.<\/p>\n
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.<\/p>\n
According to the court\u2019s 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.<\/p>\n
The court\u2019s 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.<\/p>\n
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.<\/p>\n
Las Cruces challenged the PRC\u2019s decision, arguing regulators should have considered whether there were lower-cost options before allowing the costs to be recovered.<\/p>\n
The Supreme Court rejected that argument, saying regulators had enough evidence to support their decision.<\/p>\n
In a statement to KFOX14\/CBS4, El Paso Electric said:<\/p>\n
\u201cWe are pleased with the New Mexico Supreme Court\u2019s decision, which affirms the Public Regulation Commission\u2019s application of its rules and appropriately defers to the Commission\u2019s 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\u2019s diverse generation portfolio helps ensure reliability for our customers, even during extreme weather events.\u201d<\/p>\n
KFOX14\/CBS4 followed up with El Paso Electric asking how much customers\u2019 bills could rise as a result of the ruling.<\/p>\n
A spokesperson responded, saying:<\/p>\n
\u201cThere is no customer impact. This decision stemmed solely from the City of Las Cruces disagreeing with the NM PRC\u2019s decision, which the NM Supreme Court affirmed was within the PRC\u2019s authority.\u201d<\/p>\n
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.<\/p>\n
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.<\/p>\n
KFOX14\/CBS4 also reached out to the city of Las Cruces for comment on the ruling but has not yet heard back.<\/p>\n
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