El Paso infrastructure upgrades prompt rate case filing
El Paso Electric (EPE) recently filed a proposal with the Public Utility Commission of Texas (PUCT) and the incorporated cities in its service territory to change rates to reflect $444.3 million in infrastructure upgrades the company has completed since March 2015.
EPE constructed new generation, distribution and transmission facilities and upgraded existing local and remote infrastructure. EPE placed the Montana Power Station Unit three into operation in May 2016 and Unit four in September 2016.
EPE completed these improvements to meet a growing demand. From 2005 to 2016, peak demand grew by more than 37 percent.
“We spend a lot of time planning how to best meet the demands created by the continued growth of our region, and these latest investments will benefit our customers well into the future,” Mary Kipp, El Paso Electric CEO, said.
EPE proposal suggests eliminating subsidies between all customer classes and creating a new class for customers with private rooftop solar.
“It is important to establish a fair rate structure that reflects the cost to serve each customer class,” Kipp said. “As technologies progress and our customers’ needs change, we must also evolve to provide programs and rate structures that allow us to provide safe and reliable service at a price that is fair to all our customers.”
Under the proposal, the average monthly bill will see an increase of $7.24 in the winter and $9.27 in the summer. Private solar customers can expect an average increase of $14.09 per month. Small commercial customers would see a rate decrease of less than three percent.
The rate case process is expected to take six months to one year. If approved, the new rates would be applied in late 2017 or early 2018.
