Southern New Mexico ratepayers blast El Paso Electric over plan to add $40 a month

Southern New Mexico residents are lining up against a proposed electricity rate change that, they argue, would increase household expenses while boosting El Paso Electric's earnings.

KTSM reported that at a public hearing in Las Cruces, customers urged regulators not to approve a sizable jump in monthly power costs.

What happened?

During a June 22 hearing convened by the state regulator, dozens of residents challenged El Paso Electric's rate request. According to KTSM, the plan could push the typical household electric bill up by more than $40 by the fall of 2027.

If approved, the proposal would charge customers in New Mexico an additional $70 million, according to the station.

For several speakers, the request was hard to justify given what critics describe as the company's existing profitability. One resident captured that frustration during public comment, as KTSM recounted. 

"Their goal, of course, is to make money," the resident said, per the station. "Their concern is not for the ratepayers. It no longer feels like a public utility."

Among those objecting was civil rights attorney Israel Chavez.

"I think it's wrong for El Paso Electric to profit over $140 million last year and then ask to increase rates on Southern New Mexico ratepayers," Chavez declared, according to KTSM.

El Paso Electric, however, said the increase is needed to recoup spending tied to more than $400 million invested in Southern New Mexico's grid infrastructure, the station noted.

"We're looking for that balance between what we have to recover to run our business in New Mexico," Jim Schichtl, vice president of regulatory strategy for El Paso Electric, explained, according to KTSM.

Why does it matter?

A $40 monthly increase would add hundreds of dollars a year in unavoidable costs.

That kind of increase can hit especially hard for families already trying to keep up with rent, groceries, insurance, and summer cooling bills.

When a company serves a captive customer base, residents have little choice but to pay whatever regulators ultimately approve.

Critics have argued that trust can erode quickly when a company reports strong profits and then asks ordinary residents to shoulder higher bills.

According to KTSM, Schichtl argued that many New Mexico customers have not yet seen a rate increase, which makes the change seem more drastic. 

"You haven't had a rate change for 10 years," he said, per the station. "You're going to get a bigger increase when you finally do change rates."

Chavez and others questioned whether the relationship with a Texas-based provider is serving Southern New Mexico residents appropriately.

What's being done?

The proposal is still in an early phase, and the New Mexico Public Regulation Commission is not expected to cast a final vote until early next year, according to KTSM.

Community members are using the regulatory process to raise concerns, challenge the company's reasoning, and push for a broader public discussion about affordability and accountability.

El Paso Electric, meanwhile, continues to defend the request as necessary to maintain infrastructure and keep its operations running in the state.

"Texas doesn't pay for our efforts in New Mexico," Schichtl asserted, per KTSM. "New Mexico doesn't pay for our efforts in Texas."

Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.