City calls on state officials to extend data center ratepayer protections to El Paso

EL PASO, Texas (KVIA) -- The City of El Paso announced Wednesday that they have submitted formal comments to the Public Utility Commission of Texas (PUCT) requesting that protections being developed to shield residential electric customers from the costs associated with large data centers apply statewide, including to communities served by utilities outside the ERCOT electric grid.

Officials say that the comments were filed in response to Governor Greg Abbott’s June 10 directive regarding data center growth and residential ratepayer protections and are consistent with policy direction previously approved by the El Paso City Council.

Previously the City Council amended the City’s 90th Legislative Session Agenda to support policies protecting residential ratepayers from utility costs attributable to large data centers and to advocate for extending those protections to El Paso customers served by El Paso Electric.

According to officials, the City asks the PCUT to ensure the Governor’s directive extends beyond ERCOT by establishing a parallel process for non-ERCOT utilities, including El Paso Electric. The comments also note that El Paso is experiencing data center growth, with Project Jupiter and the Meta Data Center undergoing construction.

The City stated in the comments that customers outside ERCOT, El Paso Electric customers, deserve the same protections being developed for the rest of the state.

“We believe El Paso can lead in innovation while also protecting the people who live here. Welcoming investment and protecting residents are not competing goals, they go hand in hand,” Mayor Renard U. Johnson said. “As demand for electricity grows, the costs of serving that growth should be paid by those creating it, not by working families, seniors, or small businesses. We’re asking the Public Utility Commission to make sure every Texan, including the nearly 700,000 customers served by El Paso Electric, receives the same protections. Ratepayers must remain at the center of every decision.”

City officials say that the City's position is consistent with its ongoing participation in Public Utility Commission proceedings involving El Paso Electric, including the proposed Economic Development Rate and the McCloud Generation Facility. In those proceedings, the City has advocated for safeguards that ensure the costs of serving large energy users are not shifted to residential and small business customers.

Specifically, the City asked the Commission to:

• Confirm that the Governor’s directive applies to Texans both inside and outside ERCOT.
• Initiate a separate rulemaking for non-ERCOT utilities.
• Apply the Governor’s principles in pending and future proceedings involving El Paso Electric.
• Recommend that any future legislation include protections for customers statewide.

The City says they will continue participating in proceedings before the Public Utility Commission to advocate for fair utility cost allocation and protect the interests of El Paso ratepayers.