By Jim Tolbert
El Paso Group
On December 8, the El Paso City Council voted unanimously to oppose the proposed rate increases and the “attack” on solar homeowners.
El Paso Electric Company must now look toward the Public Utility Commission of Texas to save their rate-hike proposal in El Paso, which includes putting rooftop solar customers into a special rate class while raising their rates by nearly 25 percent.
The Sierra Club El Paso Group has supported Eco El Paso, a coalition of citizens, solar businesses and community groups, financially in its effort to intervene against El Paso Electric both at City Council and now, most probably, in front of the PUCT.
Jefferies, a stock analysis group, predicted that EPE’s game plan all along has been to take the matter before the Utility Commission. Jefferies reported: “[T]he company will take the long road to Austin for a litigated decision.”
However, EPE’s longer-range game plan may be more contemptible. In an interview with outgoing El Paso Electric CEO Tom Shockley, the El Paso Times revealed that he had been an officer of a company in the 1990s that tried to take over El Paso Electric. Although that attempt failed, the Times reports that “Shockley said El Paso Electric may be courted by larger utility companies in the future.”
The implications of his statement are shocking. It seems that El Paso (and New Mexico) ratepayers are footing the bill for large infrastructure projects and exorbitant rates attractive to shareholders in order to make EPE a more viable and lucrative takeover target. Solar energy is a growing industry in El Paso, with nearly 300 customers added since August alone, bringing the number of households with rooftop power generation to nearly 800. Some builders have begun to add solar panels as standard equipment on new affordable housing, reducing a homeowner’s electric bill and reducing power load on the grid at peak times, when electricity is most expensive. It also supports high-paying jobs. But EPE’s proposal would be chilling to solar businesses.
State Sen. José Rodríguez announced his opposition to EPE’s proposal in November. He issued a statement responding to the City Council decision:
“The City Council did the right thing in deciding to contest El Paso Electric’s rate proposal, which would raise rates for all residential customers by about 10 percent, and at least double that for customers with rooftop solar. This is particularly troubling because residential solar installation is rapidly growing in El Paso, providing relief to the grid and well-paying building-trades jobs for community members. I look forward to the City vigorously advocating for all El Paso Electric customers as the rate case progresses.”
The PUCT hearing is set for early 2016.
Take action against EPE
We won the first round against El Paso Electric’s unfair rate structures, but the most important decision is still to come.
- Please ask the Texas PUC to reject EPE’s proposal: Public Utility Commission of Texas, Attn: Filing Clerk, Rate Case #44941, 1701 N. Congress Ave., Austin, TX, 78711-3326.
- Contact riogrande.chapter@sierraclub.org to get updates on this issue, or go to eco-elpaso.org to donate or volunteer.
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