EL PASO, Texas--(BUSINESS WIRE)--
On May 19, 2016, the Public Utility Commission of Texas ("PUCT") ruled
that the initial notice provided by El Paso Electric Company ("Company")
(NYSE: EE) in the rate case pending before the PUCT did not include the
treatment of residential customers with solar systems that was
subsequently contained in the non-unanimous settlement executed by the
Company. Those four intervenors who did not join in the non-unanimous
settlement had filed an appeal with the PUCT challenging the adequacy of
the notice with respect to solar customers. The May 19 ruling from the
PUCT, which has not been reduced to a written order, will remand the
notice issue to the Administrative Law Judges ("ALJs"), who are expected
to establish a schedule for issuing additional notice. On April 22,
2016, the ALJs had issued an Order Setting Procedural Schedule,
Notice of Hearing on the Merits, and Ruling on Notice, which ruled
against the four intervenors on the notice issue. At this time the
Company cannot predict what impact the PUCT ruling on notice will have
on the Company's rate case or on the timing of when the PUCT will issue
a Final Order in this rate case. However, it is possible that re-issuing
notice could result in a significant delay in the issuance of a Final
Order. Regardless of when the Final Order is issued, the new rates will
relate back to consumption after January 12, 2016. Furthermore, as
previously approved by the PUCT, the Company implemented interim rates,
subject to refund or surcharge, effective April 1, 2016.
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 actions and timing of matters
in EPE's Texas rate case pending before the PUCT; (ii) EPE's inability
to reach agreement with the intervenors in EPE's Texas rate case; (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/20160519006794/en/
El Paso Electric Company
Public Relations
Eddie
Gutierrez, 915-543-5763
eduardo.gutierrez@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 Company
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