Commissioner Perez: EPE discouraging use of solar panels

El Paso Electric has not shied away from the fact that its newest rate proposal will increase prices for private, solar customers.

The utility said, under the proposed rates, customers with solar panels will see an average increase of about $14 per month.

It’s that number that county commissioner Vince Perez doesn’t buy. Perez said he’s concerned this proposal could put a dent in the solar industry in El Paso. That’s why he decided to intervene in the rate case as an individual.

The Commissioners’ Court unanimously voted to intervene in the rate case back on March 13.

“This type of technology is much more practical. It’s quite possible that thousands of people could use this technology,” Perez said. “Now this significantly different rate structure. These significantly different, costs, tariffs, rate charges are being proposed for solar customers.”

Perez is referring to the fact that the utility’s proposal is creating a new customer class for private rooftop solar customers. The proposed rates are found on Page 134 of El Paso Electric’s rate case application to the Public Utility of Texas.

This customer class will be charged a flat fee of $18.15 per month. If the proposal is passed, There will also be a demand charge put in place. The demand charge is determined by the peak hour of usage per month, multiplied by $3.10 per Kilowatt. During the summer, Solar customers will be charged $0.33 per Kilowatt-hour. In the winter, they will be charged $0.05 per Kilowatt-hour.

Perez argues this three-part cost structure means solar customers could lose all of the incentives that come with solar panels.

“I think all of these measures, when looked at in totality, are meant to discourage the use of solar,” Perez said.

El Paso Electric spokesman Eddie Gutierrez said the $14 estimate is based on the fact that residents without solar panels are helping subsidize those that do have them.

“The $14 a month for private solar customers reflects and attempts to capture a portion of the bill — of the wires and poles, the system to be on standby — to attempt to capture the subsidy that’s currently being imposed upon residents that don’t have this technology.”

El Paso Electric launched its “Community Solar Program” last month. Customers would pay a flat rate of $20.96 per month. The solar energy is gathered at the new Montana Power Station. Perez argues that the new proposed rates for solar customers, go hand-in-hand with the creation of the new solar program.

“Is it really designed to encourage the use of solar energy on a broad scale,” Perez said. “Or is it really more to dissuade folks from getting their own solar panels? I think folks are going to have to judge that for themselves.”

Gutierrez said that’s not the case.

“It’s not competing. If anything, it’s providing another option, and all solar options are good options if it’s right and beneficial from your home,” Gutierrez said.

The utility said over 1,000 people have signed up for the Community Solar Program.

Gutierrez said the rate hike isn’t specifically singling out solar customers.

“Traditionally we have seen where some residents pay more than others, and some groups of residents pay more than others — a subsidy,” Gutierrez said. “In this case, we’re eliminating them, and so that’s really where the discussion will be slightly different in this rate case moving forward.”