Electricity rate to increase slightly, no surcharge for solar panel customers

El Paso Electric has filed an unopposed settlement agreement for its Texas rate case that is expected to increase the electric bill for the average home.

This latest rate case includes an additional $3.7 million increase for the Four Corners Generating Station that will help the utility keep up with rising demand.

“We want to make investments. We’re looking for new equipment, things that are more efficient, that use less water,” El Paso Electric Spokesman Eddie Gutierrez said. “No one likes when bills go up. Everyone’s bill seems to go up nowadays, but we want make sure the customers know in advance. The city is growing and we want to make sure that we can keep up.”

Gutierrez explained the utility has power plants that have been in existence since the 40s and “they’re not as efficient as they used to be and its time to think about replacing them.”

During the Summer, an average home that consumes 625 kilowatt hours of electricity pays about $79 a month. During the winter, it’s about $76 a month. Under the settlement, that figure is expected to rise an extra $2 to $3, the utility said.

Commercial customers are expected to see a three percent increase in their current bills. The latest increase is set to start next month and it will be in effect for the next 24 months.

A controversial proposed surcharge of $11 a month for residential customers with solar panel systems was left out of the deal. Gutierrez said the surcharge proposal could be part of a future rate case.

“They settled it favorably on behalf of the community, because there had been issues, especially for the residential solar owners, the solar installers, and for them it was an issue of promoting residential solar, saving on energy costs, being able to create jobs with the installers,” State Senator Jose Rodriguez, (D) El Paso, said.

Rodriguez fought the charge on behalf of solar customers and solar businesses.