The New Mexico Public Regulation Commission hosted a public comment hearing regarding a possible rate increase for New Mexico El Paso Electric customers, drawing in over 50 people and angry messages.
The meeting was attended by over 50 people and the public comment lasted over an hour with staunch opposition to El Paso Electric’s request.
The request asks for the PRC to approve a 50% increase to the base rate as well as a 10.7% return on equity. If approved, once fully implemented New Mexico customers can expect to pay an average of $42 more per month for electricity. This will be implemented in two stages with the full effect of the rate change happening in October of 2027.
El Paso Electric says that the money will be used to recover over $400 million in infrastructure improvements the utility has implemented in New Mexico since 2020 and to further improve service.
The New Mexico Public Regulation Commission ultimately makes the decision on if this goes through.
During public comment, the majority of speakers showed their anger with the proposal. Many called the idea unfair, over the top, and did not want money going to help data centers in Texas.
Las Cruces resident Saul Solis said that this is unfair.
“The bulk of the customers that they serve are actually in El Paso and the bulk of the investments that have been made have been made in Texas so I have a concern that they are unduly burdening New Mexico's customers with a big piece of what they say they need to recoup some of their investments. To me it's unfair and not unlike what El Paso did for their customers, I would urge the PRC to also take a look and ensure that you're providing protections for your customers here in New Mexico,” Solis said.
Many local lawmakers from the City of Las Cruces, Doña Ana County, and the state were also present at the meeting. New Mexico State Senator Jeff Steinborn also spoke at the hearing and called the proposal and the idea that it will fund data center infrastructure “atrocious.”
However, not everyone was against the proposal. Some called El Paso Electric a great community partner and that this will help fund better infrastructure for the community.
Debbi Moore from the Greater Las Cruces Chamber of Commerce spoke in favor of the idea saying that the money is needed for improvements and to keep up with growth.
“As Las Cruces, Mesilla Valley and Doña Ana County grow, so does the need for reliable, scalable electric service. El Paso Electric has positioned itself to meet that demand for homes, businesses and the emerging data center and renewable energy markets driving our regional economy. A financially strong utility can invest into infrastructure that growth requires. Rate increases are never popular but they are often the price of keeping pace with a community on the rise,” Moore said.
Local business owner Israel Chavez criticized that idea saying just because they help some businesses doesn’t mean they should make that much money and that this will hurt businesses and families.
“Businesses in this community know that when families are squeezed by these rates, they are going to stop coming to these small restaurants. We have already lost several. Nellie’s is closed. I mean people can sit here and list how many restaurants are now gone. That is a direct result of not only, I’m not saying it's all El Paso Electric’s fault, but that is a direct result of families having less dollars in their pockets,” Chavez said.
The rate increase is expected to be voted on near the end of the year. If approved, the new rates will start to take effect in early 2027.
