Kelly A. Tomblin, President and CEO of El Paso Electric, commented on Feb. 20 regarding the Public Utility Commission of Texas’s decision related to the company’s 2025 rate review.
The decision is significant because it addresses how much of El Paso Electric’s infrastructure investment costs can be recovered through customer rates, which affects both reliability and affordability for customers in Texas.
Tomblin said, “While we respect the Commission’s decision, we firmly stand by our original filing that sought to recover approximately $1.55 billion in infrastructure investments that we have spent to bolster reliability and growth in our Texas service area. Our customers have depended on these investments since 2020 and the rates in place today and those proposed do not fully cover the cost of building, operating and maintaining this infrastructure.” She also addressed concerns about returns for investors: “Additionally, we requested a 10.7% return on equity (ROE) and received only an increase from 9.35% to 9.4% after four years, which may impact our ability to further invest in infrastructure while keeping costs fair for customers.” Tomblin continued, “While we understand and care about customer affordability, we also are concerned about long-term economic development. We may find it challenging to support our Texas region’s growth when the ROE remains lower than many other utilities in the state.”
Despite these challenges with regulatory decisions impacting investment recovery and future growth prospects, Tomblin said El Paso Electric remains committed: “Despite the challenges, we remain committed to finding a way to remain reliable and continue to meet the long-term needs of the communities we serve while we evaluate other regulatory options.”
