In what appears to be a swift tactical move, the El Paso City Council has voted unanimously to temporarily suspend El Paso Electric's (EPE) request for a $93 million rate increase, a measure set to impact the city's residents well into their wallets. The intervention, putting a 90-day freeze on the rate proposal, allows the City to partake in the review process to ensure fairness and reasonableness—a crucial step potentially affecting a significant number of households. According to the City of El Paso, City Attorney Karla Nieman emphasized the City's dedication "to protect ratepayers and prevent unnecessary costs by carefully examining this case and ensuring that any approved increase is fair and justified."
The rate hike, proposed by EPE, is partitioned into an $85.7 million general rate increase and an additional $7.3 million for a retiring plant rider, funds intended for the recovery of costs related to decommissioned power plants. Yet, it's the average resident who would feel the pinch the most, facing an average monthly bill hike of 23 percent, or $22.39. The City's engagement comes as no surprise as it has a history, and quite an effective one, to aggressively save nearly $189 million on behalf of its residents throughout past rate case negotiations. "Historically, the City has been a strong advocate for its residents and that advocacy has yielded positive results for EPE’s Texas service area customers," Nieman said, as per the City of El Paso.
El Paso's efforts to challenge the proposed rate increase include enlisting the help of external experts in regulatory accounting, cost allocation, and rate design. With more than 5,400 pages of testimony from EPE lying in wait, these experts will dissect and scrutinize the utility company's claims. The City's analysis is poised to focus on verifying that only reasonable and necessary expenses are permitted to flow through to the final rates paid by the customers.
As for what comes next, there's a timeline to consider. EPE's new rates were slated to come into effect on March 3, however, the City has until June 1, to take action against this proposed rate case, with the Public Utility Commission of Texas (PUCT) needing to approve an order setting rates by July 31. These dates, though set by State statute, could be subject to change if all parties manage to come to an alternative agreement. El Paso residents are encouraged to stay informed and participate in the process, with updates on the schedule and opportunities for public input to be provided as they become available, the city said.
