EL PASO, Texas--(BUSINESS WIRE)--
On June 8, 2016, the New Mexico Public Regulation Commission (the
"NMPRC") voted to approve an approximate $1.1 million increase in
non-fuel base rates in El Paso Electric Company's ("EPE" or the
"Company") (NYSE: EE) pending New Mexico rate case (Case No.
15-00127-UT). On May 11, 2015, EPE filed with the NMPRC for an annual
increase in non-fuel base rates of approximately $8.6 million or 7.1%.
Subsequently, the Company reduced its requested increase in non-fuel
base rates to approximately $6.4 million. On February 16, 2016, the
Hearing Examiner assigned to the case issued to the NMPRC a Recommended
Decision proposing an annual increase in non-fuel base rates of
approximately $640 thousand and a return on equity of 9.60%. The June 8
decision by the NMPRC deviated from the Hearing Examiner's Recommended
Decision by lowering the return on equity to 9.48% and providing a
reduction to the rate base offset related to the pension and other
post-employment benefit liability. EPE currently anticipates new
non-fuel base rates in New Mexico will become effective in the third
quarter of 2016.
"Although we are disappointed and disagree with the outcome of the New
Mexico rate case, in particular the return on equity, we remain
committed to providing all of our customers with safe, reliable and
cost-effective energy," said Mary Kipp, El Paso Electric CEO. "We will
continue to take the necessary steps to ensure that the Company
maintains financial strength and stability while still meeting the
growing and changing needs of our customers."
As EPE continues to serve its growing service territory and bring
additional generating units into commercial operation, the Company
anticipates filing a new rate case in New Mexico in early 2017. The next
rate case will be necessary to seek recovery of the costs associated
with new generating units, transmission and distribution infrastructure,
as well as request a fair return on equity.
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 has a net
dependable generating capability of 2,098 MW.
Safe Harbor
This news release includes statements that may constitute
forward-looking statements made pursuant to the safe harbor provisions
within the meaning of Section 27A of the Securities Act of 1933, as
amended (the "Securities Act"), and Section 21E of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"). 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) uncertainty regarding the ultimate substance and timing
of the implementation of a regulatory order; (ii) decisions of EPE's
regulators that could be detrimental to EPE; (iii) increased prices for
fuel and purchased power and the possibility that regulators may not
permit EPE to pass through all such increased costs to customers or to
recover previously incurred fuel costs in rates; (iv) full and timely
recovery of capital investments and operating costs through rates in
Texas and New Mexico; and (v) other factors detailed by EPE in its
public filings with the Securities and Exchange Commission. EPE's
filings are available from the Securities and Exchange Commission or may
be obtained through EPE's website, http://www.epelectric.com.
Although El Paso Electric believes that the expectations reflected in
such 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. EPE cautions that these risks and factors are not exclusive.
EPE does not undertake to update any forward-looking statement that may
be made from time to time by or on behalf of EPE except as required by
law.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160608006342/en/
El Paso Electric
Public Relations
George De La Torre,
915-543-5823
george.delatorre@epelectric.com
or
Investor
Relations
Lisa Budtke, 915-543-5947
lisa.budtke@epelectric.com
or
Richard
Gonzalez, 915-543-2236
richard.gonzalez@epelectric.com
Source: El Paso Electric
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