EL PASO, Texas (KTSM) — The El Paso City Council voted unamiously on Monday, Feb. 3 to intervene in El Paso Electric’s proposed $93 million rate increase.
That move effectively pauses the increase for 90 days, the City said.
Under the proposed rate increase, the typical residential customer would see an average monthly increase of more than $22, representing a 23 percent increase to their monthly bill, the City said.
“Given the significant financial impact on residents, the City Council voted to intervene and suspend the proposed rate increase for 90 days,” the City said in a news release announcing its decision.
By intervening, the City said it “aims to ensure ratepayers understand the full scope of the increase and that the final approved rates are equitable.”
The City will participate in Public Utility Commission of Texas proceedings regarding EPE’s request, with the majority of the increase affecting residential customers, EPE’s largest customer class, the City said in its news release.
Under state statute, the suspension allows the City time to review the comprehensive proposal and determine if the proposed increase is reasonable, while still allowing the utility to recover investments in its infrastructure, the City said.
“The City is taking immediate steps to protect ratepayers and prevent unnecessary costs by carefully examining this case and ensuring that any approved increase is fair and justified,” City Attorney Karla Nieman said. “Our proactive approach, combined with expert input, aims to minimize the financial impact on residents while securing the best outcomes for all El Pasoans.”
The City has authorized using outside counsel and technical experts specializing in regulatory accounting, cost allocation, rate design, and other areas “crucial to assessing utility rates,” it said.
These experts will review over 5,400 pages of testimony submitted by EPE.
“As we have done in previous rate cases, we will pursue every available avenue to reduce the financial impact on ratepayers while ensuring reliable utility service,” Nieman said.
The City said it has saved ratepayers nearly $189 million in past rate cases, dating back to 1994.
Under Texas law and the City’s local code, El Paso has the authority to help set electric rates within the City limits and represent ratepayers during rate hearings, it said.
The City anticipates other agencies and organizations will also intervene in EPE’s rate case with the Public Utitility Commission.
Here are some key dates coming up, according to the City:
March 3: El Paso Electric’s proposed effective date for new rates.
June 1: Deadline for the City to take action on the proposed El Paso Electric rate case.
July 31: Current Public Utility Commission deadline to approve the order setting the new rates.
The projected timeline is set by state statue, but the dates can be adjusted under agreement by all involved parties.
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