El Paso Electric and the city of El Paso reach a settlement agreement in EPE’s Texas rate case

El Paso Electric and the city of El Paso have reached a settlement agreement in EPE’s Texas rate case.

El Paso Electric initially asked for 71 million in additional base rate revenues, citing extensive infrastructure improvements needed at its plants and transmission line

That request was scaled back to $63 million when the city contested it. The compromise approved today grants $37 million in base rate increases, plus other potential increases that could bring the utility as much as 75 percent of its initial $71 million request.

The vote was 6-1, with Peter Svarzbein voting against the increase.

Norman Gordon, city of El Paso’s attorney for utility issues said that the increase was a little bit over half what the company originally requested in the rate changes.

The agreement terms included that on average a residential customer will see an average monthly impact of 9% percent. A summer and winter bill impact will be provided later today.

All other customer classes will see an average of 8 percent monthly increase.

Eddie Guttierez, El Paso Electric spokesman believes that the increase is a reasonable compromise.

He went on to say, “I think we worked together to agree with the city. As the city grows, we’re providing reliable energy and we’re happy we’re able to come to a resolution and a settlement here.”

A formal agreement is still required by the settling parties. The settlement agreement must be approved by the Texas Public Utility commision new interim rates are expected as early as April 1, 2016, subject to surcharge or refund, as appropriate effective for electricity consumed on and after Jan 12.

The rate increase goes into effect on Jan 12.