El Paso Electric, a utility that serves about 400,000 customers in southern New Mexico and west Texas is facing stiff opposition to its request for a $6.4 million rate increase.
Hearings began this week at the New Mexico Public Regulation Commission for El Paso Electric's rate hike request.
The Albuquerque Journal reports the company requested an $8.6 million increase in its base revenue in May.
El Paso Electric says it has invested about $1.3 billion in new assets since 2009, the last time it requested a rate increase in New Mexico.
The New Mexico Attorney General's Office, the City of Las Cruces and Dona Ana County argue for granting less than a 1 percent rate hike.
Opponents say the utility is inflating the costs it needs to recover for infrastructure development.
Information from: Albuquerque Journal.
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