El Paso Electric

El Paso Electric to Revise its Texas Fuel Factor

Due to an increase in both natural gas prices and the use of natural gas-fired generation to serve growing electricity consumption over recent months, El Paso Electric, on July 15, 2011, filed a request with the Public Utility Commission of Texas to increase its fuel factor charge.  The requested fuel factor increase, if approved will be included in electric bills beginning in August 2011.  Base rates will not be affected by the requested fuel factor increase.
 
If the PUCT approves the requested fuel factor increase, the average residential customer using 600 kWh per month will see an increase of approximately 2.1 percent, or $1.55 in the monthly bill.

The fuel factor charge on customer electric bills reflects fuel-related costs needed to supply customers with electric power. This charge includes the costs of the fuel used to generate electricity such as natural gas, coal and uranium for nuclear power, as well as electricity purchased in the open market. Under Texas law, fuel cost factors are adjusted periodically to assure that utilities collect only their actual fuel costs.  Over-collection of fuel costs results in a credit (refund) to customers, while under-collection of fuel costs results in a charge (surcharge) to customers to compensate for the under-recovery.