Editor’s note: Video is from late April when the City decided to intervene a second time into El Paso Electric’s rate increase requests.
EL PASO, Texas (KTSM) — The City of El Paso will hold a public hearing during its June 24 City Council meeting to discuss El Paso Electric’s proposed rate increase.
During this public hearing, El Paso Electric will be asked to provide a detailed presentation regarding the proposed rate changes.
In February 2025, the City Council voted unanimously to “intervene” and suspend the rate increase proposed by El Paso Electric (EPE) for its Texas retail customers.
The requested $93 million rate increase consists of two components: an $85.7 million increase for general rates and an additional $7.3 million for a retiring plant rider, which EPE requested separately in the rate case. The “retiring plant rider” is designed to allow the utility to recover costs associated with older power plants that are no longer in use or are being decommissioned, the City said.
Under the proposed rate increase, the typical residential customer would see an average monthly residential increase of $22.39, representing a 23 percent increase to their monthly bill.
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.
“Our priority remains that we ensure any proposed rate changes are fair, transparent, and justified,” City Attorney Karla Nieman said. “This public hearing provides an important opportunity for residents to understand the impact of the proposed rate increase and for the City to advocate on their behalf.”
The City is also intervening in five additional El Paso Electric filings including the general rate. The five additional cases could potentially increase rates for Texas retail customers and include the following:
- EP Electric Fuel Reconciliation
- EP Electric Newman Buffer Certificate of Convenience and Necessity
- EP Electric Macho Springs Reallocation
- EP Electric Amended Generation Cost Recovery Rider (GCRR) for Texas Solar One (creates a new rate for solar users)
- EP Electric Energy Efficiency Cost Recovery Factor
The City says it has a “strong track” record of advocating for fair utility rates, resulting in significant savings for local residents.
Over the last six rate cases, the City’s “proactive interventions” have saved approximately $189 million for El Paso’s ratepayers through negotiations and strategic actions, the City said.
The El Paso City Council also requested that EPE host a series of community meetings to inform the public and provide an opportunity for residents to ask questions about the general rate case and its potential impact. EPE hosted six community meetings throughout the month of April, with the last meeting taking place on April 24.
The City said it will continue to monitor both rate increase proposals. Final decisions are excpected by the end of the year.
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