El Paso Electric’s fuel rate increase approved

A proposed increase for El Paso Electric’s fixed fuel charge was approved Wednesday.

The utility’s customers in Texas will begin to see an average increase of $3.55 a month in their residential electricity bills.

El Paso Electric said the increase is needed as a result of an increase in demand at a time when there is a “flat production of gas and decreasing stock of gas storage.”

The increase will allow the utility to recover fuel costs, but not allow it to make a profit on fuel charges, something prohibited by the Texas Utility Commission.

In addition to the fuel charge increase, El Paso Electric plans to file an application to change its overall electricity rate. The rate increase proposal will be filed in Texas in the first quarter of 2017 and in New Mexico in early Spring.

EPE said an increase in its electricity rate is needed to recover the investments it made to replace old equipment and build new units at its Montana Power Station.

Since 2009, EPE has invested $1.4 billion in new infrastructure, generating equipment and assets “to meet the growing energy needs of our region,” a news release states.