El Paso Electric Files 2017 Texas Rate Case
February 13 2017 - 12:57PM
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 final
order.
“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 grid-related
services.
“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.
Conference Call
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.
Safe Harbor
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 CompanyPublic RelationsEddie Gutierrez,
915-497-3495eduardo.gutierrez@epelectric.comorInvestor
RelationsLisa Budtke,
915-543-5947lisa.budtke@epelectric.com
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