EL PASO, Texas--(BUSINESS WIRE)--
On February 13, 2017, El Paso Electric Company (NYSE: EE) filed with the
City of El Paso, other municipalities incorporated in its Texas service
territory, and the Public Utility Commission of Texas (PUCT) a request
for an increase in non-fuel base revenues of approximately $42.5
million. Under the proposed rates, a residential customer using 635
kilowatt-hours per month will see an average bill increase of $8.25 per
month when new rates are implemented. The new rates will relate back for
consumption on and after July 18, 2017, which is the 155th day after the
filing of the rate case. The difference in rates that would have been
billed will be surcharged or refunded to customers after the PUCT's
"As we've previously indicated, the 2017 rate case is needed to recover
the costs to complete the Montana Power Station (MPS) and other
investments to meet our customers' growing needs. We've worked hard to
modernize our aging local generation fleet and promote solar and other
clean energy technologies our customers want, all while providing safe,
reliable and affordable service," said Mary Kipp, El Paso Electric CEO.
"We spend a lot of time planning how to best meet the demands created by
the continued growth of our region and these latest investments will
benefit our customers well into the future."
Since March 31, 2015, the end of the test year in the Company's 2015
Texas Rate Case, the Company has invested approximately $444.3 million
in new plant. Approximately $151.3 million was invested in MPS Units 3
and 4 and the related common plant to keep pace with load growth and to
maintain reliable service for customers. These new units enhance
operational flexibility due to their quick-start and cycling
capabilities, as well as the ability to quickly respond to load
variations. This last capability is critical as the Company and its
customers expand the amount of renewable resources connected to the grid
locally. The remainder of the investment is comprised of $139.8 million
in new transmission and distribution facilities, $59.4 million of Palo
Verde Nuclear Generating Station plant, $50.3 million in existing local
generation, and $43.5 million in general and intangible and other plant.
Similar to its 2015 rate case, the Company is again proposing the
creation of a Residential Distributed Generation ("DG") rate class for
residential customers with DG facilities, such as private rooftop solar
panels, in order to reflect the unique service characteristics and cost
of service for this group of customers. Consistent with its treatment of
other rate groups, the Company is proposing to assign the full cost of
service to the new rate group, and is also proposing to implement a new
rate structure including a monthly demand charge to recover the cost of
"It is important to establish a fair rate structure that reflects the
cost to serve each customer class," said Kipp. "As technologies evolve
and our customers' needs change, we must also evolve to provide programs
and rate structures that allow us to provide safe and reliable service
at a price that is fair to all our customers."
In a simultaneous process, the Company filed the rate case with the City
of El Paso, municipalities in its Texas service territory, and the PUCT.
The PUCT will refer the case to the Texas State Office of Administrative
Hearings, which will then appoint an administrative law judge to
adjudicate the case.
The cities and towns in the Company's Texas service territory maintain
their right to regulate this rate case process and make a decision on
rates within their city limits. Their decisions can be appealed to the
PUCT, which has appellate jurisdiction over the cities' and towns'
decisions and original jurisdiction in the unincorporated areas of the
Company's Texas service territory. Any municipality can participate in
the proceeding before the PUCT as an intervening party in Austin.
A conference call to discuss the 2017 Texas Rate Case with investors and
analysts is scheduled for 11:00 A.M. Eastern Time, on February 14, 2017.
The dial-in number is 888-240-0263 with a conference ID number of
6856315. The international dial-in number is 913-312-1480. The
conference leader will be Lisa Budtke, Director of Treasury Services and
Investor Relations. A replay will run through February 28, 2017 with a
dial-in number of 888-203-1112 and a conference ID number of 6856315.
The replay international dial-in number is 719-457-0820. The conference
call and presentation slides will be webcast live on the Company's
website found at http://www.epelectric.com.
A replay of the webcast will be available shortly after the call.
El Paso Electric is a regional electric utility providing generation,
transmission and distribution service to approximately 400,000 retail
and wholesale customers in a 10,000 square mile area of the Rio Grande
valley in west Texas and southern New Mexico. El Paso Electric's common
stock trades on the New York Stock Exchange under the symbol EE.
This news release includes statements that may constitute
forward-looking statements made pursuant to the safe harbor provisions
of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. This information
often involves risks and uncertainties that could cause actual results
to differ materially from such forward-looking statements. Factors that
could cause or contribute to such differences, include, but are not
limited to: (i) increased prices for fuel and purchased power and the
possibility that regulators may not permit the Company to pass through
all such increased costs to customers or to recover previously incurred
fuel costs in rates; (ii) full and timely recovery of capital
investments and operating costs through rates in Texas and New Mexico;
and (iii) other factors detailed by the Company in its public filings
with the U.S. Securities and Exchange Commission (the "SEC"). The
Company's SEC filings are available from the SEC or may be obtained
through the Company's website, http://www.epelectric.com.
Although the Company believes that the expectations reflected in these
forward-looking statements are reasonable, no assurances can be given
that these expectations will prove to be correct. Any such
forward-looking statement is qualified by reference to these risks and
factors. The Company cautions that these risks and factors are not
exclusive. The Company does not undertake to update any forward-looking
statement that may be made from time to time by or on behalf of the
Company except as required by law.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170213005951/en/
El Paso Electric Company
Lisa Budtke, 915-543-5947
Source: El Paso Electric Company
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