CAMPAIGN STATUS: Judges Issued Recommendation, waiting for Commission DECISION HOLDER: Utility Commission of Texas
We have the power to say NO to higher bills driven by corporate greed and climate pollution.
Learn more about this campaign:
What is the issue?
El Paso Electric Co. is a privately owned company. They filed what is called a rate case before the state. They wanted the following, among other things:
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Increase the price of electricity for residential users by increasing the flat customer fee and the price of electricity (kWh), which would lead to a monthly increase from $96 to $119, or 23%, for the average user. However, our research showed the proposed increase would result in the lowest users having to pay an annual average increase of 31%.
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Increase their profit rate, which would increase our monthly bills.
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Continue to punish roof solar users by switching them from a flat monthly fee to a demand fee.
Why does it matter?
Based on our estimates, since EPE has not provided any, the proposed electricity rate increase will cause 40% of El Paso County households, 118,536 households and approximately 341,000 people, to exceed the recommended fair ratio of energy bill to income ratio.
This means 40% of families in El Paso will struggle to pay their electricity bill. If we have the extreme heat of 2023, we will have even higher bills.
Our analysis shows that the people who use the LEAST amount of electricity will pay a HIGHER percentage increase, beyond 23%, because they cannot save their way out of the fees that are mandatory and not based on your usage.
Who decides and when?
The Public Utility Commission of Texas (PUCT) will make a final decision in early 2026. The rate case was first heard by state Administrative Law Judges. They reviewed the evidence and held a hearing in August 2025. In December of 2025, they issued a recommendation.
What did we do?
1. Intervened in the case
The public was allowed to participate in 2 different ways: Intervenors and Protestors. Intervenors were parties to the case and could ask for evidence, negotiate with El Paso Electric, and participate in the hearing. Sembrando Esperanza member, EACH in Montana Vista (next to one of the power plants) was an Intervenor. Sembrando Esperanza partners, Solar United Neighbors and Amanecer People’s Project were also Interventors, as well as EPISD, the County and City.
2. Sent comments as Protestors.
As Protestors, we sent 1048 written comments from the community as well as technical comments that were more detailed.
3. Created an online tool for people to figure out how they will be impacted by proposed rate increases (“bill estimator”).
We ran these calculations for:
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A single person living in a one-bedroom unit close to downtown.
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A person with a disability who uses medical equipment that must stay plugged in continuously.
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A family of 5 living in a home in Montana Vista using the community solar program.
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A family of 4 living in a home in Far East El Paso using solar panels that they paid for.
What did the PUCT decide?
If the Public Utility Commission adopts the judges’ recommendations, we will pay more for our electricity but not as much as EPE wanted us to pay.
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1. Monthly customer charge.
Current cost: $9.25
EPE wanted: $13.71
Judges’s Proposal: $9.25
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2. Energy Charge
“Summer Months” per El Paso Electric are from May to October. They are charged at a higher rate than the “Winter Months,” from November to April. The Summer Months are divided into two tiers.
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Tier 1 applies to users who use 600 kWh or less.
Current cost: $0.10203 per kWh
EPE wanted: $0.1428 per kWh (an increase of 39%)
Judges’s Proposal: $0.12616 per kWh (an increase of 23.6%)
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Tier 2 applies to users who use more than 600 kWh
Current cost: $0.10719 per kWh
EPE wanted: $0.15281 per kWh (an increase of 42.5%)
Judges’ Proposal: $0.136168 per kWh (an increase of 27%)
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“Winter Months,” per El Paso Electric, are from November to April.
Current cost: $0.09171 per kWh
EPE wanted: $0.12281 per kWh (an increase of 34%).
Judges’ Proposal: $0.106164 per kWh (an increase of 15.7%).
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3. Profit or Return on Equity
Current: 9.35%
EPE wanted: 10.7%
Judges’ Proposal: 9.40%
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4. Roof solar mandatory fee for using the grid.
Current: $30.25
EPE wanted: Demand Charge of around $33
Judge’s Proposal: $30.25 EPE wants to charge solar users a Demand
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EPE does not pay solar consumers fairly for the extra electricity they generate. EPE pays solar consumers $0.016 per kWh and then resells it to other users for between $0.092 and $0.107 per kWh. EPE is currently netting 570% and with these new rates, it will net even more.
What can we do now?
1. Join our fight against the META data center and El Paso Electric’s natural gas, fossil-fuel power plant for the data center.
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2. Keep advocating for solar users.
3. Keep learning about how utility prices impact our lives, especially for those of us who struggle to pay our bills. Below is our analysis of the impact of the proposed rates on different types of households.
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4. Keep learning about the impact that El Paso Electric and other fossil-fueled polluters have on our health and environment​.
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El Paso Matters covered the El Paso ranking as one of the most polluted cities in the United States.
1. EPE’s use of fossil fuels at its power plants is responsible for more than 30% of the area’s Greenhouse Gas (GHG) emissions, which contribute to the heat that forces us to use our air conditioners more, creating a vicious cycle.
2. Hotter temperatures have resulted in more hospitalizations. The average daily temperature was 89 degrees from early June to early August in 2023. This was 6 degrees hotter than in 2021. From early June to early August in 2021, the city received 52 heat-related calls that led to 48 people being hospitalized. From early June to early August in 2023, the city received 152 heat-related calls, and 109 people were hospitalized. We saw three times as many heat-related calls and more than twice as many people hospitalized from 2021 to 2023.
3. Hotter temperatures have resulted in more deaths in our community. El Paso lost 95 people to heat-related deaths, or an average of 4.3 per year, from 1999 to 2022 (23 years). In just one year, 2023, 11 people died from heat-related complications, nearly three times the yearly average during the previous 23 years.
4. People with certain disabilities are especially at risk of having complications due to hot temperatures .
5. GHG emissions also cause drought and winds, which then cause more frequent and stronger dust storms.
6. Dust storms result in more hospitalizations for mental health episodes, strokes, heart conditions, and respiratory issues.
El Paso's historical dust storms were featured on Inside Climate News.
5. Keep speaking up for solar energy
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The City’s Climate Action Plan identifies switching from fossil fuel-generated energy to solar energy as one of the key solutions for bringing down greenhouse gases and hot temperatures. In addition, more solar energy means lower electricity costs, more jobs, better air quality, and better health.
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Currently, solar consumers (people who have spent tens of thousands of dollars on solar panels on their homes or businesses) pay $30.25 per month for being connected to the grid. When the sun goes down, they have to use and pay for EPE’s electricity unless they have a battery and enough solar energy to not rely on EPE. EPE wanted to charge solar users a Demand Charge that will increase the monthly fee to about $33 per month.EPE does not pay solar consumers fairly for the extra electricity they generate. EPE pays solar consumers $0.02/kWh and then resells it to other users for $0.10/kWh or more. EPE should not punish solar consumers. EPE should invest in a battery program for solar consumers so they do not have to rely on EPE’s power plants.
👇 We ran these calculations for the proposed increase:
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A single person living in a one-bedroom unit close to downtown.
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A person with a disability who uses medical equipment that must stay plugged in continuously.
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A family of 5 living in a home in Montana Vista using the community solar program.
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A family of 4 living in a home in Far East El Paso using solar panels that they paid for.
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NOTE: Electrical energy is charged per kilowatt-hour (kWh). A kilowatt-hour is a basic unit of the electrical energy consumed in households, businesses, and other entities. The average residence in El Paso consumes 660 kWh each month. These estimates assume that the customers will use the same amount of electricity each month next year that they used this year. If next year is as hot as 2023 was, we estimate a 20% increase in our usage of electricity.
Apartment
Renter uses little electricity:
244 kWh average per month
Total increase for the year:
$161.36 or 31%
Monthly rate increase range:
21%-35%
“I live in a one-bedroom apartment near downtown by myself. From early June to July of this year, 2025, I only used 356 kWh and my bill was still $58.26. If El Paso Electric increases our rates as much as they want to AND I use the same amount of electricity from early June to July next year, my bill will be $78.83. That means my bill will go up $20.09 or 34% over the same period. My bill over the whole year will increase from $514 to $676, which is $161 or 31% more. If 2026 brings extreme heat like 2023 did, my bill for July could be as high as $91.”
— Paul, EPE Consumer
Home
Family of 4 uses solar panels and sells extra energy to EPE.
Total increase for the year:
$92 or 23%
Monthly rate increase range:
0%-67%.
“I live in a single-family home in the Far East with my family of four. We have solar panels and use electricity only for our appliances and other essentials. We do not use natural gas or propane. We spent $41,000 on solar panels. From July 2024 to June 2025, our solar panels created more electricity than we used. That was a total of 2,044 kWh.
That extra energy went back to El Paso Electric. EPE paid us $33 for this extra electricity at a rate of $0.016 per kWh.
Then, EPE turned around and sold this electricity to other customers at a higher cost. They sold it for between $0.092 and $0.107 per kWh. This means they charged other consumers between $188 to $219 for electricity that our home created. EPE netted between $155 and $186.
In addition, we were forced to pay a minimum monthly bill of $30.25 even though we created more energy than we used from panels that we paid for and that don’t pollute. This fee costs us an additional $142 over the year.
If the EPE rate increase goes through, households with solar panels will have to pay a new “Demand Charge,” in addition to the other rate increases that all households will have to pay. For our house, all of these increases will make our average monthly bills go up 15%, but for the month of July, our bill will go up 67%. If EPE keeps the same rate for paying us for the excess energy we sell them, they will net as much as 860% for that energy, since they will give us $33 for the excess energy and turn around and sell it for as much as $220.”
— Mario
Home
Family of 5 uses EPE’s Community Solar ProgramTotal increase for the year:
$306 or 20%
Monthly rate increase range:
5%-39%
“I live in a single-family home in the Montana Vista neighborhood with my family of five. We live right next to El Paso Electric’s power plant. Every time most people turn on their lights or use electricity, my community breathes in those toxic emissions. We decided to subscribe to the Community Solar Program because we want to do our part to fight climate change. We used 1205 kWh from mid-May to mid-June 2025, this year. Our bill was $148. If EPE gets its way and we use the same amount of electricity next year, our bill for the period from mid-May to mid-June will be $206. That’s $58 more.
If we have another extremely hot summer like in 2023, we will use 20 percent more energy to cool our house from mid-June to mid-July, and my bill for July could go as high as $244, nearly $100 more and twice what we pay now.
I will pay between $7 and $58 more each month and $306 more for the entire year. This is between 5% and 39% percent more each month.”
— Ralph