EL PASO, Texas--(BUSINESS WIRE)--
El Paso Electric Company (NYSE: EE) announced today that it plans to
seek a delay of its 2017 rate case filing in New Mexico.
Case No. 15-00109-UT, the docket in which the New Mexico Public
Regulation Commission ("NMPRC") authorized the Company to sell its
interest in the Four Corners Power Plant, requires the Company to make a
general rate case filing in the second quarter of 2017 using a
historical test year ended December 31, 2016. The Company has met with
Staff of the NMPRC and the Office of the New Mexico Attorney General to
discuss filing a motion to amend the order in Case No. 15-00109-UT to
allow for the delay of a rate case filing, and the proposal will be
circulated among other intervening parties in that case for their
positions. Any motion would be subject to approval by the Commission.
"Our preliminary analysis indicates that the revenue deficiency in New
Mexico does not justify the expense necessary to proceed with a rate
case using the dates outlined in the order from the Four Corners Power
Plant case," said Mary Kipp, El Paso Electric CEO. "If allowed to delay
the rate increase request in New Mexico our resources can be utilized to
work on other corporate initiatives and to provide enough time to fully
analyze our options regarding our investments in Palo Verde Unit 3.
While recovery of our significant investments like Montana Power Station
Units 3 and 4 is important and will be pursued at a later time if the
delay is approved, we don't expect the postponement of this rate case to
significantly impact our financial performance."
El Paso Electric is a regional electric utility providing generation,
transmission and distribution service to approximately 411,000 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/20170322005896/en/
El Paso Electric Company
Lisa Budtke, 915-543-5947
Source: El Paso Electric Company
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