Las Cruces City Council has its sights set on renewing the franchise agreement with El Paso Electric (EPE), aiming to update a partnership that has, in spirit if not in letter, extended beyond its original expiration in 2009. On February 10, city councilors gathered to discuss a fresh franchise contract, which proposes several changes, notably increasing the franchise fee from two to three percent. The council met in a work session solely dedicated to this agenda item, as detailed by the City of Las Cruces.
In the fiscal year 2023, EPE contributed around $1.779 million in franchise fees to the city. This one percent fee hike expected under the new agreement could yield an additional $889,000 in revenue annually for the City's coffers. Mayor Eric Enriquez weighed in, suggesting a more frequent automatic review of the contract every seven years instead of the proposed ten, an idea that will be explored by both parties before moving forward to a Council vote.
The proposed changes could offer a financial boost for the city, as the additional funds could be allocated to various city services and improvements. With the first read of the ordinance scheduled to be on the docket for a regular meeting of the City Council, representatives of both Las Cruces and EPE are in a position to carefully consider the implications and potential benefits of the revised terms.
The introduction of such an agreement aligns EPE's partnership with the city more closely with current standards and needs. The new franchise contract, including any amendments such as Mayor Enriquez's suggested review cycle adjustment, will undergo a first reading during an upcoming regular City Council meeting. A second reading will be necessary for the agreement to be formally adopted. Residents and interested parties can keep informed by tuning into the City's YouTube channel for live updates on the Council's proceedings.
