El Paso Electric Files 2015 New Mexico Rate Case

May 12, 2015

On Monday, May, 11, 2015, El Paso Electric (EPE) filed with the New Mexico Public Regulation Commission (NMPRC) for an increase in electric rates of approximately $8.6 million or 7.1 percent of non-fuel base rates. These proposed rates will result in a 9 percent increase, on average, to total residential bills.

“Several years ago, we began planning and investing to replace our less efficient plant and equipment while providing additional resources for our growing service territory,” said Tom Shockley, El Paso Electric CEO. “This rate case is about recovering these cost-effective investments and ensuring that we continue to provide safe and reliable service at a reasonable cost. We continue to see significant growth in our service territory and with that growth we must continue to make improvements and upgrades to El Paso Electric’s infrastructure and equipment to continue to have the most reliable and safest grid possible.”

EPE last filed for a non-fuel base rate increase in New Mexico in 2009. Since then, EPE has placed in service approximately $1.3 billion in new assets.  The most significant investments include Montana Power Station generating units 1 and 2 at $206 million, the Eastside Operations Center at $40 million and the Montana Power Station transmission lines at $20 million.

“No one likes it when bills go up. This is why we’re telling our customers about changes now, because it is our responsibility to you, our customer,” added Shockley. “We believe customers have a right to know exactly what’s going on with their electric utility, especially when bills may be going up.  This process takes time, and proposed rates will not go into effect until our regulators make the final decision in 2016. “

EPE has carefully taken each class and their cost of service into consideration when determining the new proposed rates.EPE’s revised rates proposed in this filing are reasonable and necessary to provide safe and reliable service. Although EPE has experienced consistent customer growth, increased revenues due to customer growth are not sufficient to cover increased operating costs and plant additions.

The proposed rate change and bill impact for major customer classes include: 

Cost of Service - Classes

Average Total Bill Increase

Residential Service


Partial Requirements


Small General Service


General Service


Irrigation Service


Water Pumping Service


Large Power Service


Military Research & Dev. Service


Street Lighting Service


Private Area Lighting


Seasonal Agricultural


Outdoor Recreational Lighting


State University Service



In addition, key factors affecting the Rate Case filing include:

  • New and existing generation units with supporting substation and transmission facilities
  • Distribution plant
  • Operations and maintenance expenses.
  • Significant reduction in the cost of fuel and purchased power costs, which reflect reduced fuel prices and improvements in system.

“For more than 113 years, your regional electric utility has been dedicated to the long-term success and well-being of our community,” Shockley concluded. “We continue to focus and receive national recognition on our utility-scale solar energy production and continue to build a balanced energy portfolio with other cost-effective technologies, including our quick-start, clean burning natural gas generators, in order to prepare for our region’s growth. We make these investments in the grid for you, our customers, because we are part of the community we serve and we are investing in your future. As a regulated utility, it is our responsibility and obligation to provide clean, safe and reliable energy to you every day.”

For more information on the New Mexico rate case, visit