El Paso City Council opposes electric company’s proposed rate increase
Olivia Vara
EL PASO, Texas (KVIA) — Today, El Paso City Council voted to oppose El Paso Electric’s proposed rate increase by 22%, or $23 per month, starting in early 2026.
At today’s meeting, El Paso Electric and the El Paso City Council discussed a proposed $93 million rate increase, primarily consisting of an $85.7 million increase in general rates and an additional $7.3 million for a retiring plant rider.
City leaders emphasize that this proposed rate increase was being asked to pass as is by El Paso Electric, without any negotiation.
El Paso Electric said that some reasons for the tariff changes include fuel factor calculation, fuel cost of service by class, and facilitating growth.
They claim that this increase is necessary to recover costs associated with investing in infrastructure.
El Paso Electric said that in regards to covering Newman 6 they have so far recovered 80%, and that they are planning to get the remaining 20% percent through this filing.
They said Newman 6 is rated at 160 megawatts, and that as people’s consumption continues to go up, they will have to address people’s consumption during peak hours.
El Paso Electric said that they had been charging at a lower cost value before this in terms of the cost of inflation and now are moving to charging at full-cost value through this proposed rate increase.
El Paso Electric says that the impact of the rate increase will be different between low income and high income households as their consumption of electricity differs.
El Paso Electric says that the load they are seeing is so atypical that they must accomadate that through this proposed bill.
Brad Trejo said that he thinks of those who are retired and those in the vulerable population, and that with such a big increase in cost, that is forcing those people to save money by turning off their air conditioners.
In response, El Paso Electric said they are not forcing anyone to join an increased rate at peak hours and that it is only an option.
Brad Trejo reiterated that it worries him how this is being portrayed to those in vulnerable populations who may suffer through the heat to save money.
El Paso Electric responded that the bill would be based on income of the household so that those in a lower income home would pay less of this cost versus those in higher income homes, and that this is a great step in recovering the cost for higher energy users.
El Paso Electric said that the demand charge stands at about $6 per KW, and that on average 3.2 kw is used per home. They said that because about half of residents in El Paso still use swamp coolers, this demand would be less, even in the summer months.
They stated that this would be cost based and not a fixed cost.
The city’s proactive interventions have saved approximately $189 million for El Paso’s ratepayers through negotiations and strategic actions.
In today’s presentation, El Paso electric stated that if any of their customers are experiencing any hardships, to please give them a call.
El Paso Electric was asked that since going private and their merger with JP Morgan, did that increase salaries for people working there, especially at the top.
They say that their average employee’s income is at market or under, and that there was an elimination of an entire level of leadership. El Paso Electric says the idea that there was an exodus of employees is untrue and they have remained steady and that they try to compensate their employees. They added that since the merger their elimination of VP’s and board of directors they are now at half the cost.
During public commentary, VJ Smith, with Western Refining, says that they are one of the top tax payers in the city. He asked that the council deny the proposal.
Another citizen, Marcy, brought her utility bills to the meeting, she said last month she paid $730 on a small home for electric.
She says she’s been questioning this amount since last year. She said in January, she paid $1000.
She says that when they disconnected her she still had the old meter, and that El Paso Electric threatened her, saying that she either pay the $730 or allow them to replace her old meter with a smart meter and then she will pay nothing.
She says she is preparing to get disconnected a second time.
The proposed rate increase still needs to go under review by the Public Utility Commission of Texas.