EL PASO, Texas (KTSM) — A proposed $93 million increase to El Paso Electric’s (EPE) base rates is drawing pushback from residents and city leaders, as state regulators begin reviewing the utility’s latest rate case.
If approved, the change could raise the average monthly bill by about $22 starting in January 2026. The utility says the money is needed to upgrade aging infrastructure and meet growing demand across the region.
What’s also on the table is a fundamental shift in how EPE bills its customers, moving to what’s called a “full cost of service” model. That approach would require each customer group, from residential to commercial, to pay the full cost to serve them without subsidies or phase-in periods.
During the hearing, City Attorney Donald Davie specifically questioned the move, asking whether this was the first time in several cases that the company had requested full cost allocation.
“I believe so, that’s right,” an EPE witness said.
The proposed rate hike has raised concerns about the impact it could have on residential customers.
“I don’t think it should go up,” one resident told KTSM. “I’m 100 percent disabled and on a limited income, so it would definitely be a burden.”
Another resident said: “I think everybody should be allowed to raise their rates, but I don’t think they should on a more morally level.”
The Public Utility Commission’s hearing is expected to last several days, with a final decision likely coming later this year.
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