Public Utility Commission of Texas Approves Final Order in El Paso Electric Company’s Texas Rate Case Docket No. 46831
December 14 2017 - 1:25PM
Business Wire
The Public Utility Commission of Texas (the “Commission”)
approved a Final Order (the “Order”) in El Paso Electric Company’s
(the “Company” or “EPE”) (NYSE: EE) rate case today. The Order
resolves all issues in this rate case.
“We are pleased to have been able to work together with all
parties and to reach the agreement reflected in this final order,”
said Mary Kipp, President and CEO of El Paso Electric. “As always,
we will continue to serve our customers safely and reliably, while
finding innovative solutions for meeting the needs of our growing
region.”
The Order provides, among other things, for the following: (i)
an annual non-fuel base rate increase of $14.5 million; (ii) a
return on equity of 9.65%; (iii) all new plant in service as filed
in the Company’s rate filing package was prudent and used and
useful and therefore is included in rate base; (iv) the Company to
recover reasonable rate case expenses of approximately $3.4 million
through a separate surcharge over a three year period; and (v) a
requirement that the Company file a refund tariff if the federal
statutory income tax rate, as it relates to the Company, is
decreased before the Company files its next rate case. The Order
also establishes baseline revenue requirements for recovery of
future transmission and distribution investment costs, and includes
a minimum monthly bill of $30.00 for new residential customers with
distributed generation, such as private rooftop solar.
Additionally, the Order allows for the annual recovery of $2.1
million of nuclear decommissioning funding and establishes annual
depreciation expense that is approximately $1.9 million lower than
the annual amount requested by the Company in its initial filing.
Finally, the Order allows for the Company to recover revenues
associated with the relation back of rates to consumption on and
after July 18, 2017 through a separate surcharge.
New rates are anticipated to be implemented in January 2018. As
a result of the non-fuel base rate increase, the Company’s Texas
residential customers will likely see an average monthly bill
increase of $3.50 and $5.00 in winter and summer months,
respectively.
El Paso Electric Company is a regional electric utility
providing generation, transmission and distribution service to
approximately 417,000 retail and wholesale customers in a 10,000
square mile area of the Rio Grande valley in west Texas and
southern New Mexico.
Safe Harbor
This news release includes statements that may constitute
forward-looking statements made pursuant to the safe harbor
provisions within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Forward-looking statements often involve risks
and uncertainties that could cause actual results to differ
materially from such forward-looking statements. Risks and factors
that could cause or contribute to such differences include, but are
not limited to: (i) new rates are not implemented in January 2018;
(ii) increased prices for fuel and purchased power and the
possibility that regulators may not permit EPE to pass through all
such increased costs to customers or to recover previously incurred
fuel costs in rates; (iii) full and timely recovery of capital
investments and operating costs through rates in Texas and New
Mexico; (iv) impact of U.S. tax reform legislation; and (v) other
factors detailed by EPE in its public filings with the Securities
and Exchange Commission (SEC). EPE's filings are available from the
SEC or may be obtained through EPE's website,
http://www.epelectric.com. Although EPE believes that the
expectations reflected in such forward-looking statements are
reasonable, no assurances can be given that these expectations will
prove to be correct. Any such forward-looking statement is
qualified by reference to these risks and factors. EPE cautions
that these risks and factors are not exclusive. The forward-looking
statements are subject to and involve risks, uncertainties and
assumptions and you should not place undue reliance on these
forward-looking statements. EPE does not undertake to update or
revise any forward-looking statement that may be made from time to
time by or on behalf of EPE except as required by law. If EPE does
update one or more forward-looking statements, there should be no
inference that EPE will make additional updates with respect to
these or other forward-looking statements.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171214006177/en/
El Paso Electric CompanyPublic RelationsEddie
Gutierrez,
915-543-5763eduardo.gutierrez@epelectric.comorInvestor
RelationsLisa Budtke,
915-543-5947lisa.budtke@epelectric.comorRichard Gonzalez,
915-543-2236richard.gonzalez@epelectric.com
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