{"id":87668,"date":"2025-12-14T15:08:08","date_gmt":"2025-12-14T15:08:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-tx\/87668\/"},"modified":"2025-12-14T15:08:08","modified_gmt":"2025-12-14T15:08:08","slug":"judges-recommend-lowering-el-paso-electric-rate-increase","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-tx\/87668\/","title":{"rendered":"Judges recommend lowering El Paso Electric rate increase"},"content":{"rendered":"

The proposed bill increase by El Paso Electric that could take effect next year may be decreased after a panel of judges overseeing the utility\u2019s rate case sided with customers and suggested moderating it.<\/p>\n

A final decision on the rate increase by the state\u2019s Public Utility Commission likely won\u2019t come until February. But the judges on Dec. 7 issued a proposal for decision \u2013\u00a0 a recommendation for the state\u2019s public utility commissioners \u2013 that argued El Paso Electric is asking to make too much profit off customers.\u00a0<\/p>\n

Instead of authorizing the requested shareholder profit margin of 10.7%, the PUC should approve an allowed return of 9.4% that\u2019s close to the utility\u2019s current authorized profit margin<\/a>.\u00a0<\/p>\n

El Paso Electric is evaluating the panel\u2019s recommendation, the utility said in a statement.<\/p>\n

\u201cBecause this is an ongoing regulatory proceeding, we are not in a position to comment on specific recommendations included in the Proposal for Decision, including customer charge levels, return on equity, revenue requirement adjustments, or the treatment of distributed generation customers,\u201d the utility said.<\/p>\n

\"\"El Paso Electric Headquarters at 100 N. Stanton St. in Downtown El Paso (Cindy Ramirez \/ El Paso Matters)<\/p>\n

Since it filed to raise rates in January<\/a>, El Paso Electric has argued it needs to collect about $85 million more annually from customers to pay off $1.55 billion in various investments it\u00a0 made between 2021 and 2024, such as the $217 million Newman 6 power plant unit that started operating in 2023.<\/p>\n

Monopoly utilities can\u2019t set their own rates. Instead, utilities have to seek approval from state public utility commissions to raise their rates to recover money they\u2019ve spent on investments such as substations or power plants \u2013 plus their authorized profit margin.\u00a0<\/p>\n

The judges said El Paso Electric\u2019s proposed shareholder profit margin made up $38 million of the total requested rate increase.\u00a0<\/p>\n

El Paso Electric\u2019s original request would raise average monthly bills from $96 to $118.<\/p>\n

READ MORE: As El Paso Electric rate increase looms, some say utility is seeking to make too much profit<\/a><\/p>\n

It\u2019s difficult to calculate how the recommendation from the judges overseeing the case would impact bills, but it\u2019s likely the increase will be lower than the $22 proposed if the PUC adopts the recommended decision when commissioners vote early next year.<\/p>\n

The judges recommended the PUC hold the flat monthly customer charge at $9.25 rather than the proposed $13.71. That would take off $4.46 of the proposed $22 per month increase. And if the PUC approves the 9.4% shareholder profit margin over the 10.7%, it would mean a smaller increase for customers.<\/p>\n

A big part of the rate case involves what to do with customers who have rooftop solar panels. The utility currently charges a $30 minimum bill for rooftop solar customers, arguing they still rely on the grid when their panels aren\u2019t producing electricity.<\/p>\n

El Paso Electric sought to change the solar customer fee \u2013 which would have likely resulted in an increase to rooftop solar customers. But the judges recommended keeping the current fee in place and said the utility hasn\u2019t studied closely enough how those customers affect the electric grid and the utility\u2019s costs.\u00a0<\/p>\n

A coalition of pro-solar organizations known as the Joint Solar Advocates weighed in on the ruling, saying they largely supported the judges\u2019 conclusions.<\/p>\n

\u201cThe Joint Solar Advocates are generally supportive of the outcome in the recommended decision,\u201d the group said in a statement to El Paso Matters. \u201cImportantly, the (case\u2019s judges) agreed that there is no cost-basis for a unique demand charge on customers that choose to install their own solar panels to meet part of their electricity needs.\u201d<\/p>\n

The solar advocates \u2013 which include the national nonprofit Solar United Neighbors and other pro-rooftop solar groups such as Public Citizen and Amanecer Peoples\u2019 Project \u2013 say El Paso Electric should conduct a detailed study to look at the benefits rooftop solar customers bring as a decentralized source of electricity generation. And they want the utility to pay customers more for the electricity their panels produce.\u00a0<\/p>\n

That kind of study \u201cis what\u2019s really needed so that EPE and customers can make a more informed decision on adopting rooftop solar,\u201d\u00a0 the joint statement said. \u201cThe study will also speak to the appropriateness of EPE\u2019s minimum bill for solar customers, and the utility\u2019s compensation rate for those customers\u2019 energy exports back to the grid.\u201d<\/p>\n

RELATED: As rate increases loom, El Paso households could see utility bills jump $45 a month in early 2026<\/a><\/p>\n

Separately, El Paso Electric told the New Mexico Public Regulation Commission that it plans to apply to raise rates for its customers in New Mexico in February, likely after the Texas rate case is resolved. The utility in 2024 had more than 459,000 customers, including 107,000 New Mexico customers, according to the U.S. Energy Information Administration.\u00a0<\/p>\n

El Paso Electric didn\u2019t provide details yet to the NMPRC about what the rate increase in New Mexico could look like \u2013 for example, whether rates would rise more for residential, commercial or big industrial customers.\u00a0<\/p>\n

However, in the utility\u2019s Texas rate case, El Paso Electric said it needs to bring in $140.7 million more from all of its customers, annually, to cover the cost of investments and operations, including $85.7 million more from all of its Texas customers. That would indicate the utility needs to collect about $55 million more from its New Mexico customers \u2013 a 38% increase in revenue.\u00a0<\/p>\n

\u201cRegarding New Mexico, we have not yet finalized our filing, the revenue requirement or calculated residential customer impacts,\u201d El Paso Electric said in its statement.<\/p>\n

El Paso Electric plans to spend $4.4 billion in capital projects over the next five years as spending across the U.S. utility industry has accelerated rapidly in recent years.\u00a0<\/p>\n

Most of that spending is driven largely by the construction boom of power-hungry data centers and increased electricity demand for air conditioning in homes and businesses caused by climate change and higher average temperatures.<\/p>\n

Related<\/p>\n

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