Las Cruces reviews El Paso Electric franchise agreement after settlement approval

The Las Cruces City Council convened on February 10, 2025, to discuss several key agenda items, with a significant focus on the El Paso Electric Company franchise agreement. Mayor Adrienne Whitmer opened the session, providing context for the discussions that would follow.

The first item on the agenda was a review of the El Paso Electric franchise agreement. Mayor Whitmer explained that the city had previously made a decision to condemn El Paso Electric, particularly concerning the West Mesa area. This condemnation led to a court-ordered negotiation between the city and the electric company. As a result of these negotiations, a settlement agreement was reached, formalized through resolution 238. Under this agreement, El Paso Electric compensated the city with $21 million to regain control over the West Mesa electrical systems, which included a substation and associated equipment.

Additionally, the city adopted ordinance 1790 in February, which was part of the settlement agreement framework. This ordinance is expected to play a crucial role in the ongoing relationship between the city and El Paso Electric.

The meeting continued with further discussions on the implications of this agreement and how it would affect the city's utility management moving forward. The council emphasized the importance of ensuring reliable electrical service for residents while maintaining a collaborative relationship with El Paso Electric.

In conclusion, the meeting highlighted the city's strategic steps in managing its utility agreements and the financial implications of the settlement with El Paso Electric. The council plans to monitor the outcomes of this agreement closely and will continue discussions in future sessions.