El Paso Electric (NYSE: EE) is asking for a rate increase that’s expected to raise an average residential customer’s bill by about $8.25 a month.
The company wants an 8.7-percent rate hike and a $42.5 million increase in revenues. CEO Mary Kipp said at a news conference Feb. 13 that the rate case is needed to recover the costs of completing the Montana Power Station and other investments.
“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,” Kipp said. Since March 2015, the company says it has invested $444 million in generating capacity to meet growing demand.
It’s the second rate case in two years, and it includes a special rate class for customers with rooftop solar panels. They would be assessed a monthly demand charge to recover the cost of grid-related services.
The company filed the rate case with the city of El Paso, municipalities in its Texas service territory, and the Public Utility Commission of Texas. An administrative law judge will hear the case.
For more information, visit epelectric.com.