EL PASO, Texas (KTSM) — El Paso Mayor Renard Johnson says he is “deeply concerned” about El Paso Electric’s plans to ask for a rate increase that could boost the average El Paso household’s monthly power bills by almost $23 a month.
“I was informed of El Paso Electric’s proposed rate increase and the potential negative impact it will have on our residents,” Johnson said in a statement sent out to media on Monday night, Jan. 27.
Johnson said the City Attorney’s Office will brief the City Council during an executive session on Monday, Feb. 3 to determine the City’s next steps.
“I am deeply concerned about this proposed increase, as it could place a substantial burden on all El Pasoans. The preliminary estimates are significant. I will take every necessary step to ensure that our residents’ interests are protected throughout this process,” Johnson said.
According to El Paso Matters, the rate increase El Paso Electric is seeking would increase Texas customers’ bills by an average of 10 percent. But residential customers — who make up almost 90 percent of El Paso Electric’s Texas customers — would see the biggest percentage increase of 19 percent, according to El Paso Matters.
Small and large businesses would see their bills increase by between 3 percent and 7.5 percent, while medium-sized business would see their bills decline by 2 percent, according to El Paso Matters.
“Monopoly utilities in Texas such as El Paso Electric are overseen by the PUC (Public Utility Commission), which determines the profit margin a utility is allowed to make, and regulators also approve or reject rate hike requests. Texas utilities are required to conduct a rate review at least every four years,” El Paso Matters said, explaining the process the utility will have to go through.
The nonprofit news organization said it could take a year before the rate increases take effect.
The City Council will meet during a work session, that will include an executive session, at 9 a.m. Monday, Feb. 3 at City Hall, 300 N. Campbell. The council will have a regular meeting at 9 a.m. Tuesday, Feb. 4.
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