El Paso Electric Company files to implement Transmission Cost Recovery Factor surcharge
El Paso Electric Company (EPE) recently filed with the Public Utility Commission of Texas (PUCT) to implement a Transmission Cost Recovery Factor (TCRF) surcharge for its Texas customers.
The TCRF would permit EPE to implement a new surcharge for investments in transmission infrastructure improvements.
EPE has made approximately $67 million in capital investments to its electric transmission infrastructure since Oct. 1, 2016, that is not reflected in its rates.
The company calculated approximately $8.2 million in transmission-related costs for facilities currently serving customers that it is seeking to collect through the filing. If approved, the average customer using 630 kilowatt-hours per month would see a monthly TCRF surcharge of $0.97. The surcharge could go into effect later this year.
“Investing in upgrading and maintaining our transmission and distribution infrastructure to sustain reliable service for our customers is a vital responsibility at El Paso Electric,” Mary Kipp, EPE president and CEO, said. “Implementing the costs associated with these investments now would allow for a gradual increase to rates, rather than requesting all infrastructure investment costs in one regulatory proceeding in the future.”
The Texas Relate Back Revenue Surcharge (RBRS), which was previously reflected on EPE customer bills, ended as of mid-January. The RBRS surcharge for the typical residential customers was $1.94 per month. EPE noted that the elimination of the RBRS surcharge would offset the proposed TCRF charge.
EPE expects to file a Distribution Cost Recovery Factor surcharge later this year.
