Public Utility Commission of Texas approves El Paso Electric rate increase
UPDATE: In a press release, the city of El Paso estimates the average customer will pay almost $14 more a month, this is pending final calculations by the Public Utility Commission of Texas (PUCT).
The El Paso Electric company originally asked for rates to increase by about $23 a month, which would have raised El Paso residents' bill by about 22% overall.
EL PASO, Texas (KVIA) -- In an open meeting Friday morning the Public Utility Commission of Texas (PUCT) approved a rate increase requested by El Paso Electric (EPE).
El Paso Electric first requested an average residential rate increase of about 23-percent or $22.39 a month back in January of 2025.
The City of El Paso and area companies were opposed to the proposed rate increase, and the city requested a hearing on the increase to the Texas Railroad Commission.
During a hearing on Aug. 7, 2025, the PUCT heard from the city. A proposal for decision in the rate case was issued by administrative law judges, which was altered slightly and in favor of EPE by four members of the PUCT commission.
The final decision recommends the reduction of the base-rate revenue by about $60 million from what EPE originally requested.
In response to today's decision, CEO and President of El Paso Electric, Kelly Tomblin, released the following statement:
"While we respect the Commission’s decision, we firmly stand by our original filing that sought to recover approximately $1.55 billion in infrastructure investments that we have spent to bolster reliability and growth in our Texas service area. Our customers have depended on these investments since 2020 and the rates in place today and those proposed do not fully cover the cost of building, operating and maintaining this infrastructure. Additionally, we requested a 10.7% return on equity (ROE) and received only an increase from 9.35% to 9.4% after four years, which may impact our ability to further invest in infrastructure while keeping costs fair for customers. While we understand and care about customer affordability, we also are concerned about long-term economic development. We may find it challenging to support our Texas region's growth when the ROE remains lower than many other utilities in the state. Despite the challenges, we remain committed to finding a way to remain reliable and continue to meet the long-term needs of the communities we serve while we evaluate other regulatory options."
Chairman Thomas J. Gleeson recommended ten changes to the final order which are based on staff recommendations. Gleeson agreed with some of the recommendations, such as board compensation being a justifiable business expense which can be included in rates.
One of the items the chairman disagreed with that was requested by EPE is the cost recovery for the Newman 6 gas turbine plant.
The utility wanted the costs distributed to Texas customers. Gleeson stated that since it is a system-wide resource, the costs should be shared with New Mexico customers.
The PUCT adopted part of the Proposal for Decision and also reject some parts of it. They requested a recalculation of the rates based on what was approved.
