What’s changing on your El Paso Electric bill: rate hike, new fees and solar charges approved

El Paso Electric customers in Texas will experience significant changes to their monthly utility bills beginning in May, following the Public Utility Commission of Texas's (PUC) approval of a comprehensive update to the utility's pricing structure. Average residential bills are projected to increase by approximately $13 per month, from $98 to $111, to help El Paso Electric recover $1.55 billion in capital investments made since its last rate adjustment in 2021. These investments include the $217 million Newman 6 natural gas power plant in Northeast El Paso and substantial upgrades to its distribution and transmission systems. The PUC, while trimming El Paso Electric's initial request and lowering its desired shareholder profit margin, largely approved the utility's proposal. El Paso Electric spokesman Jacob Reyes stated that the rate case reflects necessary investments for system reliability and growth. CEO Kelly Tomblin noted the utility aims to balance costs more equally across customer classes, leading to the largest increase for residential customers, while some business customers might see decreases. Tomblin suggested that subsidizing residential rates with higher commercial rates hinders industrial growth and job creation. New billing structures include a higher fixed monthly charge for residential customers, increasing from $9.25 to $13.71, a change consumer advocates argue reduces incentives for energy conservation. Additionally, the PUC eliminated a discounted rate previously enjoyed by large public entities like the El Paso and Ysleta school districts and El Paso County, requiring them to pay rates aligned with actual service costs, which could lead to higher operating expenses for these entities. Controversial changes are also coming for rooftop solar customers, who will face new monthly "demand charges" ranging from $28.50 to $47.50, replacing a $30 minimum bill. Sam Silerio, Texas Program Director for Solar United Neighbors, contended that El Paso Electric should conduct a thorough study on the benefits of rooftop solar and pay customers more for the electricity they generate. The City of El Paso, which intervened in the rate case, plans to seek a rehearing to further argue for fair, evidence-based rates and protections for customers, particularly concerning credits and residential cost allocation, as stated by spokeswoman Laura Cruz-Acosta. The utility also received approval to recover $440,000 paid in a settlement with New Mexico environmental groups, including the Sierra Club, who had opposed the Newman 6 plant. This settlement money was partly used to fund the Proposition K climate charter campaign, which El Paso voters rejected. The article highlights El Paso Electric's planned $4.4 billion capital projects as mirroring a nationwide trend of utility spending to upgrade grids and meet increasing electricity demand, partly driven by large data center developments, specifically mentioning Meta's $10 billion El Paso data center.