El Paso Electric Files 2015 Texas Rate Case
August 10 2015 - 8:30PM
Business Wire
On August 10, 2015, El Paso Electric (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 $71.5 million. Under the proposed rates, a
residential customer using 625 kilowatt-hours per month will see an
average bill increase of $8.41 per month when new rates become
effective in 2016.
“At El Paso Electric, our obligation to provide clean, safe and
reliable energy to all customers in our service territory is a
responsibility we take very seriously,” said Tom Shockley, El Paso
Electric CEO. “We filed a rate case in Texas, to recover our
cost-effective and prudent investments to replace less efficient
equipment and build new generation for our community’s economic and
population growth.”
This 2015 rate case involves the review of all invested capital
subsequent to the test year ended June 30, 2009. The Company has
invested approximately $1.3 billion in new electric plant to meet
customer growth and improve grid reliability. These investments
include newer, more efficient and more operationally flexible
generating units such as Newman Unit 5 and Rio Grande Unit 9;
however, the timing of the current filing was primarily driven by
new plant placed into service at Montana Power Station including
Units 1 & 2, common, the related transmission and distribution
infrastructure, and the Eastside Operations Center. Investment in
new plant continues with the construction of Montana Power Station
Units 3 & 4, which are anticipated to be in service by the end
of 2016.
The Company’s filing seeks to ensure that the proposed rate
structures reflect each customer’s cost of service to effectively
encourage energy conservation and reduce contributions to system
peak. The filing also seeks to reduce subsidies between rate
classes, provide stable rates for customers and promote the
stability of revenues for the Company, and to ensure recovery of
the costs of providing safe and reliable service to Texas
customers.
In a simultaneous process, we filed the rate case with the City
of El Paso, municipalities in our 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. A discovery process will follow in which intervening
parties have the opportunity to communicate and engage in the
process. The procedural schedule issued by the administrative law
judge will establish a timeline for testimony and hearings, which
are expected to be held during the winter of 2015. We anticipate
rates will become effective by early second quarter 2016.
“The rate case process is transparent, and in order to make sure
we do not collect a single penny that is not justified, all parties
are represented in the process,” said Shockley. “As a local
utility, we have a responsibility and obligation to serve all our
customers. In order to do so, we must be a financially viable
company, able to take care of our customers and employees that live
and work in the region we serve.”
The cities and towns in our Texas service territory maintain
their right to regulate this rate case process and make a decision
on rates within their city limits. Regardless of decisions made by
municipalities, the PUCT has appellate jurisdiction and decides the
rate request. Any municipality can participate in the proceeding
before the PUCT as an intervening party in Austin where a final
decision on this rate case will be made.
Conference Call
A conference call to discuss the 2015 Texas Rate Case with
investors and analysts is scheduled for 10:30 A.M. Eastern Time, on
August 11, 2015. The dial-in number is 888-455-2260 with a
conference ID number of 7739967. The international dial-in number
is 719-325-2215. The conference leader will be Lisa Budtke,
Assistant Treasurer. A replay will run through August 25, 2015 with
a dial-in number of 888-203-1112 and a conference ID number of
7739967. 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 has a net dependable generating capability of 2,010
MW. 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 the Private Securities Litigation Reform Act of 1995.
This information may involve 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) full and timely
recovery of capital investments and operating costs through rates
in Texas and New Mexico; (ii) increased prices for fuel and
purchased power and the possibility that regulators may not permit
EE to pass through all such increased costs to customers or to
recover previously incurred fuel costs in rates; (iii)
uncertainties and instability in the general economy and the
resulting impact on EE's sales and profitability; (iv) changes in
customers' demand for electricity as a result of energy efficiency
initiatives and emerging competing services and technologies; (v)
unanticipated increased costs associated with scheduled and
unscheduled outages of generating plant; (vi) the size of our
construction program and our ability to complete construction on
budget; (vii) potential delays in our construction schedule due to
legal challenges or other reasons; (viii) costs at Palo Verde;
(ix) deregulation and competition in the electric utility
industry; (x) possible increased costs of compliance with
environmental or other laws, regulations and policies;
(xi) possible income tax and interest payments as a result of
audit adjustments proposed by the IRS or state taxing authorities;
(xii) uncertainties and instability in the financial markets
and the resulting impact on EE's ability to access the capital and
credit markets; (xiii) possible physical or cyber attacks,
intrusions or other catastrophic events; and (xiv) other
factors detailed by EE in its public filings with the Securities
and Exchange Commission. EE's filings are available from the
Securities and Exchange Commission or may be obtained through EE's
website, http://www.epelectric.com. Any such forward-looking
statement is qualified by reference to these risks and factors. EE
cautions that these risks and factors are not exclusive. EE does
not undertake to update any forward-looking statement that may be
made from time to time by or on behalf of EE except as required by
law.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150810006399/en/
El Paso ElectricPublic RelationsEddie Gutierrez,
915-497-3495eduardo.gutierrez@epelectric.comorInvestor
RelationsLisa Budtke,
915-543-5947lisa.budtke@epelectric.com
Excelerate Energy (NYSE:EE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Excelerate Energy (NYSE:EE)
Historical Stock Chart
From Apr 2023 to Apr 2024