El Paso Electric's rate hike faces resistance as El Paso Water lays out proposed 12% rate increase

Описание: El Paso Electric's proposed rate increase, which could add over $22 to monthly bills, is facing opposition as Texas administrative law judges recommend modifications to the request.

The utility company initially sought to raise the average residential bill by about $22 a month, generating an additional $93 million annually to fund new projects.

However, after El Paso city leaders rejected the proposal in June, the city of El Paso requested a contested hearing with the state.

The judges are now suggesting changes, including reducing the company's requested profit from 10.7% to 9.4%.

Additionally, the recommended proposal would maintain current bills for rooftop solar customers and require New Mexico customers to share the cost of the Newman 6 power plant, rather than placing the burden solely on Texas customers.

Residents have expressed mixed feelings about the proposed rate hike.

The city of El Paso stated that the recommendation comes after the utility refused to negotiate, leading to a hearing process that hadn't occurred in over 30 years.

A final decision on the rate increase now rests with the Public Utility Commission.

Meanwhile, El Paso Water presented its proposed 2026-2027 budget to the city council, outlining a $1.2 billion plan that includes a 12% rate increase for all customers.

Chief Financial Officer Jeff Tepsick said, "So this $1.2 billion budget, which is the largest budget in our history, is going to go to our capital improvement program." The increase, if approved, would raise a typical residential customer's monthly bill by about $10. The utility attributes the hike to a $770 million capital improvement program, which encompasses water supply, wastewater treatment, and flood control projects citywide.

Tepsick highlighted two major projects: the $300 million Pure Water Center, which he says will convert wastewater into 10 million gallons of potable water daily, and the expansion of the Bustamante wastewater treatment plant from 39 to 51 million gallons per day.

City Representative Art Fierro expressed concerns, stating, "Unfortunately, we're in the situation right now where everybody's trying to raise our rates and El Paso Water I don't believe gave us the true facts under the reason why they need to raise rates."

Tuesday's city council agenda includes a directive for El Paso Water to hold eight community meetings before a final decision is made. Rep. Deanna Maldonado-Rocha emphasized the importance of community outreach, saying, "Now the second piece is now to go ahead and do the community outreach so it provides the information that's necessary for the citizens of El Paso."

STORY: https://kfoxtv.com/news/local/el-paso...
https://kfoxtv.com/news/local/el-paso...

#utilities #bills #elpaso #water #electric #ratehike

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