El Paso Electric Files to Reduce Texas Fuel Factor by 29%
Reduction could decrease residential bills by $4.89 per month
Texas – On Friday, April 13, 2018, El Paso Electric (EPE) filed with the Public Utility Commission of Texas (PUCT), the City of El Paso and the other incorporated cities and towns within its Texas service territory to reduce its existing Texas fuel factor by approximately 29 percent.
If the proposed fuel factor reduction is approved, a residential customer using 785 kWh per month during the summer will see a decrease of approximately $4.89 on their monthly electric bill, which is an average decrease of approximately 4.76 percent. If approved, these changes are expected to go into effect as early as May 2018.
In April 2018, EPE’s Texas customers began to receive a credit in bills due to the corporate tax rate reduction. The typical Texas residential customer is receiving a monthly bill decrease of $3.83.
About the Texas Fuel Factor
The fuel factor is designed to recover the cost of the fuel used to generate electricity which EPE incurs in supplying electric power to customers. EPE adjusts fuel factors periodically to more accurately reflect the current and forecasted cost of fuel. The last fuel factor revision was in October 2017 when the factor was reduced by 19 percent.
EPE is permitted by its regulators to only recover its actual fuel expenses used to generate electricity and EPE does not earn a profit on these costs.
About El Paso Electric
El Paso Electric is a regional electric utility providing generation, transmission and distribution service to approximately 418,900 retail and wholesale customers in a 10,000 square mile area of the Rio Grande valley in west Texas and southern New Mexico.