Public Utility Commission of Texas Approves Final Order in Texas Rate Case Docket No. 44941
August 18 2016 - 5:58PM
Business Wire
The Public Utility Commission of Texas (the “Commission”)
approved a Final Order (the “Order”) today in El Paso Electric
Company’s (the “Company” or “EPE”) (NYSE: EE) rate case. The Order
resolves all issues in this rate case.
“While we are pleased that we have come to a resolution in our
rate case, we understand the current economic impacts affecting our
growing community,” said Mary Kipp, El Paso Electric CEO. “As a
member of this community for 115 years, we have been dedicated to
the long-term success and well-being of our region. As we continue
to see solid customer growth, we remain committed to making prudent
investments to meet increasing demand. By using cost-effective
technologies and making environmentally conscious decisions, we are
making our power grid more dependable, safer and cleaner for future
generations.”
The Order provides for the following: (i) an annual non-fuel
base rate increase of $37 million, lower annual depreciation
expense of approximately $8.5 million, a return on equity of 9.7%
for AFUDC purposes, and including substantially all new plant in
service in rate base, all as specified in the uncontested
Stipulation and Agreement filed with the Commission on July 15,
2016; (ii) an additional annual non-fuel base rate increase of $3.7
million related to Four Corners Generating Station costs, which
will be collected through a surcharge terminating on July 12, 2017;
(iii) removing the separate treatment for residential customers
with solar systems; (iv) allowing the Company to recover $3.1
million in rate case expenses through a separate surcharge; and (v)
allowing the Company to recover revenues associated with the
relation back of rates to consumption on and after January 12, 2016
through a separate surcharge.
Interim rates, associated with the annual non-fuel base rate
increase of $37 million, became effective on April 1, 2016. The
additional surcharges associated with the incremental Four Corners
Generating Station costs, rate case expenses and the relation back
of rates back to consumption on and after January 12, 2016 are
anticipated to begin as early as October 1, 2016.
As the Company continues to meet the needs of its growing
service territory with two new generating units at the Montana
Power Station coming online in 2016, EPE anticipates filing new
rate cases in Texas and New Mexico in early 2017.
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 1,990
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, 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 EPE 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 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/20160818006299/en/
El Paso Electric CompanyPublic Relations:Eddie Gutierrez,
915-543-5763eduardo.gutierrez@epelectric.comorInvestor
Relations:Lisa Budtke,
915-543-5947lisa.budtke@epelectric.comorRichard Gonzalez,
915-543-2236richard.gonzalez@epelectric.com
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