El Paso City Council Blocks One Rate Hike Only For El Paso Electric To Ask For More

The El Paso City Council recently denied a proposed interim rate increase from Texas Gas Service and implemented a 45-day block on new rates for further review. This comes as the city is also engaged in a separate legal challenge against a larger Texas Gas Service rate case, which has progressed to a court appeal after being declined by the Railroad Commission of Texas. Meanwhile, El Paso Electric has filed a general rate case with the New Mexico Public Regulation Commission, proposing a base revenue increase of approximately $70 million. The utility cites investments in grid strengthening and community growth, specifically noting that new rate structures would ensure large load customers, such as data centers, pay their fair share. El Paso Electric has also proposed a $473 million gas-powered plant to power the Meta data center, raising concerns about who will bear these costs and the use of non-renewable energy. Community opposition to the Meta data center, located near U.S. Highway 54 and Stan Roberts Sr. Avenue in Northeast El Paso, has been significant, with residents attending City Council meetings to voice their concerns. County Commissioner Jackie Butler reported that other counties are struggling with electricity rates driven by data centers. Jon Barela, CEO of the Borderplex Alliance, which brokered the Meta deal, controversially referred to El Pasoans questioning these developments as a "virus." Mayor Renard Johnson has stated the city is actively opposing these utility increases and using all available avenues to advocate for the community, despite acknowledging some decisions are beyond the city's direct control.