A rate review determines the rates that customers will pay for electricity. It considers costs associated with providing reliable service, such as investments in infrastructure (i.e., new generation, power lines, and substations) and ongoing operations and maintenance. It also includes costs for new technology and programs aimed at improving efficiency and customer service.

In Texas, El Paso Electric (EPE) is governed by several municipalities including the city of El Paso and the Public Utility Commission of Texas. In New Mexico, the New Mexico Public Regulation Commission regulates EPE. When EPE needs to adjust its rates, it must file a rate review with its regulators. These regulatory bodies are responsible for ensuring rate changes cover EPE’s costs to serve its customers and keep rates fair and reasonable.

EPE provides thousands of documents explaining the need for a rate review and the potential impact to customers. The rate filing process allows third parties, intervenors and advocacy groups, to participate in the process at the state level to ensure everyone’s interests have been considered before a final decision is made and new rates go into effect.

In Texas, regulated utilities are required to review rates with their regulatory bodies every four years unless a change is needed sooner.

Once the rate review is filed, it can take from six months to a year to receive a decision from the Public Utility Commission of Texas or New Mexico Public Regulation Commission. Once the new rates are approved, El Paso Electric will determine the implementation date and communicate the change to customers.

The last El Paso Electric rate review was filed in June 2021, and new rates went into effect in August 2022.

Safety, reliability, efficiency, and future growth are all at risk if El Paso Electric’s rates do not not have the tools needed to effectively serve its customers. Technology in the utility industry is changing rapidly, and we need to invest in our system so you can benefit from those changes. Our investments ensure we can meet the growing demand for electricity with a more modern and resilient grid.

We have already made investments in our future, and it’s important to recover those costs. In 2023, El Paso Electric commissioned Newman Unit 6, a natural gas generation unit that will replace three 60-year-old units that are inefficient and costly. Newman Unit 6 can start up within 10 minutes to meet the increased electricity customer demands when needed. Having this capability increases the overall reliability of our grid, reduces fuel use and produces lower emissions.

Yes, rate adjustments are determined by the cost of maintaining and improving the electric system. While we aim to keep rates stable and responsibly affordable, future adjustments may be needed to continue providing reliable service. We will always notify customers in advance of any changes.

For more details, please visit our website at epelectric.com. You can also contact our Customer Care team at customercare@epelectric.com or call 915-543-5970 if you live in Texas and 575-526-5555 if you live in New Mexico.

We have to make improvements now to plan for tomorrow’s growth. Not investing in the electric system increases the risk of power outages. It also makes it difficult to provide reliable electric service to a growing population.

New rates will allow El Paso Electric to:

• Recover costs associated with capital investments that have already been made, such as the Newman Unit 6 gas unit which will replace three 60-year-old units that have become expensive and inefficient.
• Deploy programs to support electric growth.
• Attract large business customers to the region, which in turn reduces rates for residential customers.
• Maintain reliability and resiliency during severe weather events.
• Mitigate threats against increasing cyber and physical attacks to the electric system.
• Replace aging infrastructure and build in areas with limited infrastructure.
• Invest in a diverse and clean energy mix.
• Implement new technologies to increase efficiency.

Operating costs are continually rising due to inflation and supply chain issues. Because of the higher costs and the urgent need to expand our system and replace aging equipment, El Paso Electric’s current electric rates need to be adjusted.

El Paso Electric has an obligation to provide safe, reliable, and affordable electric service to its customers. This includes building and strengthening infrastructure, investing in new generation, hardening the electric system to protect against severe weather, and technology for streamlining processes for increased efficiencies and long-term cost management.

A rate review typically covers costs associated with providing reliable service, including investments and replacements in infrastructure (i.e., new generation, power lines, and substations) and ongoing maintenance. It may also include costs for new technology and programs aimed at improving efficiency and customer service.

Yes, reliability is our number one priority. El Paso Electric is always making improvements to strengthen our grid, so we can continue to provide the reliable service you have come to expect from us. We’re upgrading our system in anticipation of more extreme weather events by investing in new generation and installing sturdier equipment that can withstand harsh conditions. Our work will help prevent outages, improve response times, and ensure we can meet the growing demand for electricity with a more modern and resilient grid.

We will not know the final amount until we receive a decision from the Public Utility Commission of Texas. The exact charge will depend on your customer category (residential, commercial, industrial). El Paso Electric encourages customers to monitor their energy use since charges are directly connected to the amount of energy used.

El Paso Electric rates remain competitive in Texas and New Mexico. On average, customers in Texas are paying less than $4 per day.

During the summer months (June-September), the average residential bill is $140 in Texas. During the non-summer months (October-May), the average bill is $72 in Texas. These rates are lower than most other investor-owned utilities in the Western Region of the U.S.

Commercial and industrial customers should contact their account representatives for additional information on the impact.

We anticipate the new rates will go into effect in late 2025 or early 2026. El Paso Electric will communicate with customers in the months leading up to the adjustment.

Renewable energy like rooftop solar is much more affordable now, but there are still operating and maintenance costs that cannot be ignored. Your electric bills cover costs for delivering electricity from the point of production to your home or business. Homes with solar panels typically pay much less than those without, but those customers still rely on the grid when their panels are not producing electricity. Customers who would like to rely less on the electricity from the grid are encouraged to research battery storage solutions with their solar panels.

We’re among the best performing utilities in Texas when it comes to reliability, customer satisfaction, and safety. Our employees work hard every day to ensure our customers benefit from reliable power 24/7. We also give back to the community by contributing to local charities and community events. We wait as long as possible between rate reviews and only request a change if it is absolutely necessary.

El Paso Electric rates remain competitive in Texas and New Mexico. In fact, according to the U.S. Energy Information Administration, our average residential customer bills are among the lowest compared to other investor-owned utilities in the Western Region of the U.S.

On average, EPE customers in Texas are paying less than $4 per day.

During the summer months (June-September), the average residential bill is $140 in Texas. During the non-summer months (October-May), the average bill is $72 in Texas.

No, the Smart Meter Project is not included in this rate review. While implementing smart meters requires an upfront investment, the long-term benefits of improved billing accuracy and reduced operational costs can offset the initial expenses over time.

The AMS rider will continue to be on customer bills. Customers will benefit from the improved service levels like automated start/stops, information on energy use and reduced costs of operations to date.

We are modernizing and automating technologies where possible to increase efficiencies and ultimately drive down operating costs in the future. Those savings will benefits customers in the future.

El Paso Electric offers smart energy tools that encourage customers to lower their energy use and save money in the process, demand response programs to lower energy consumption when electricity demand is high and time-of-use rates to reward customers for using energy when demand is low. In addition, El Paso Electric has a robust energy efficiency program to help customers install more efficient products and appliances. Community solar and special EV charging rates are also available.

Yes, we offer several tools to help customers save energy and reduce their bills. With smart meters, customers can monitor their energy use in near real-time and make adjustments as needed. By creating an online customer account, customers have access to a free home energy analysis, customized energy saving tips, and bill comparisons. El Paso Electric also offers rebates on qualifying energy-efficient products and appliances.

We understand that rate adjustments can be difficult for some customers. We offer payment plans, low-income assistance programs, and referrals to community resources to help customers manage their bills. Please contact El Paso Electric at customercare@epelectric.com for more information on how to apply for financial assistance.