El Paso Electric fends off city takeover proposal by wide margin

El Paso Electric (EPE) vowed to remain on a path toward sustainability and a much-smaller carbon footprint in the coming years after voters in the Texas border city over the weekend soundly rejected a ballot proposal that may have led to the municipal takeover of some of the company’s operations.

Opposition from EPE, the El Paso Chamber, and other business organizations, including the Southwest branch of the Consumer Energy Alliance, contributed to a landslide loss for Proposition K, an ambitious activist-driven proposal to make countering climate change a part of the city charter. Final results from Saturday’s vote showed 9,190 votes in favor of the proposition with 40,680 against and a countywide turnout of around 11.7 percent.

“We want to thank the voters who cast their ballot in this election that was so important to the people of El Paso,” EPE President and CEO Kelly Tomblin said in a statement. “We appreciate the confidence that you have demonstrated in our plan to deliver carbon-free resources to our community.”

The idea that EPE’s long-range plans to slash its carbon emissions 80 percent by 2035 and 100 percent in 2045 could be derailed by Proposition K was part of the industry counterattack. The proposition called for a mandatory study of the feasibility of a city buyout of EPE’s operations within the city limits was a key point of pushback.

Sunrise El Paso, the organizers of the petition drive that placed Proposition K on the ballot, said a municipal takeover was one possible means of making EPE more responsive to the needs of low-income and minority communities, and speeding up the adoption of renewable generation.

But the opposition argued the purchase of privately held EPE assets would amount to a costly hostile takeover for El Paso’s taxpayers. Anticipated legal battles would probably take years to settle and would weigh heavily upon the region’s overall economy. Another consequence, according to opponents, would be the city taking over the work and the costs of expanding solar generation and infrastructure, which has been proceeding smoothly.

“Smart regulations give businesses the rules of the road so they can operate, innovate, and invest with certainty,” the El Paso Chamber said in a statement Monday. “Regulatory overreach, on the other hand, stifles growth and innovation. Getting this balance right is essential to driving solutions that improve lives and foster a vibrant and dynamic economy that creates opportunities for people.”

As the campaign neared the home stretch, EPE late last month released its 2022 Corporate Sustainability Report. The report said EPE’s net generation for the year was 47-prcent carbon free, and the company’s carbon footprint was down 11 percent since 2015. The carbon-free total included 120 megawatts (MW) of solar generation and 50 MW of battery storage, although the lion’s share of the company’s total supply came from nuclear and natural gas.

The company also noted the ongoing construction of additional solar and battery resources at the Buena Vista Energy Center in nearby New Mexico and the addition of a high-efficiency 228-MW gas generator scheduled to begin production later this summer.

Other Proposition K opponents maintained their support for sustainability, but called the proposal unworkable and painted it as the work of outside special interests. They indicated the next step in El Paso’s climate strategy will be working through city hall on a plan with presumably greater input from the business community and more emphasis on maintaining the local economy.

“The Chamber is prepared for the next policy engagement,” the El Paso Chamber said. “With the business community’s continued support, we will have the depth and breadth necessary to deliver 100 percent of our advocacy goals.”