28-04-2025
City ‘intervenes' for 2nd time in El Paso Electric's rate increase plan
EL PASO, Texas (KTSM) – The El Paso City Council has voted unanimously to intervene a second time this year in El Paso Electric's plans to raise rates, the City announced Monday, April 28 in a news release.
This time, the City is intervening in an amendment made by El Paso Electric to recover the costs of its new Texas Solar One generation facility.
City 'intervening' in El Paso Electric's rate increase plan
As we previously reported, in February, the City intervened in EPE's proposed $93 million rate increase. If approved, the rate hike would result in an average monthly increase of $22.39 for residential customers, representing a 23 percent increase in their monthly electric bill, the City said.
In this latest filing, EPE seeks approval to recover approximately $120.4 million invested in the Texas Solar One facility, a 150-megawatt solar generation project near Fabens, set to begin operations by late August.
The City said that if approved by the Public Utility Commission of Texas (PUCT), this new amendment will result in an annual increase of $13.4 million for Texas retail ratepayers, with residential customers seeing an average monthly increase of $2.11.
Under the Generation Cost Recovery Rider (GCRR), EPE is allowed to recover the costs of new electricity generation facilities through a separate line-item charge on customer bills, bypassing the general base rate process, the City said.
'Once the new Texas Solar One generation facility begins providing service, EPE intends to file an updated request at the end of 2025 to account for the full cost of the facility. This request will likely further impact rates and will be reviewed by the City and other intervenors to ensure any proposed costs passed on to ratepayers remains fair,' read the news release.
'With the ongoing $93 million rate increase proposal and the new request for the Texas Solar One facility, the combined impact could lead to a total monthly increase of approximately $24.50 for residential customers,' Karla Nieman, City attorney, said. 'Our goal is to ensure any rate adjustments are fully justified, transparent, and in the best interest of the community. We will continue to collaborate with experts to ensure that the utility's investments align with the needs of our residents.'
Additionally, in response to concerns from residents, the City Council 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 April, with the last meeting taking place on April 24.
The City said it will continue to monitor both rate increase proposals, with final decisions expected by the end of 2025.
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