Residents, solar advocates urge council to oppose El Paso Electric rate increase, warn of harms to vulnerable households

Speakers at the July 22 El Paso City Council meeting urged the council to oppose a pending El Paso Electric rate increase, describing potential harms to low‑income residents, renters, medically dependent households and rooftop solar owners.

Veronica Carvajal, an organizer with the Sembrando Esperanza coalition, told council members the coalition submitted technical comments and more than 600 public comments to the Public Utility Commission process and asked the council to “stand with us” and oppose the proposed residential rate increases.

"We are asking that you say no to higher bills, that are driven by corporate greed and by climate pollution," Carvajal said, adding that the coalition estimates 40% of El Paso households could face an excessive energy burden if the proposal passes. She gave an example from local billing data: a single‑bedroom apartment that used 358 kilowatt‑hours in July had a bill this year of $58; under the company’s proposal that usage would see a monthly bill of $79 — a 31% increase and roughly $161 more over a year. In a hotter year, she said, the same customer could see a single monthly bill of $91.

Sam Solerio, an El Paso electrical contractor who said he installs residential solar and now works with the nonprofit Solar United Neighbors Action, said the company is asking for an increase to its allowed return on equity and described how utility profits have changed since JPMorgan Chase acquired El Paso Electric in 2020. "If you look at their profits, the average from 2017 to 2019 was about $102,000,000," Solerio said. "The average from 2021 to 2023 was about $140,000,000." He argued customers and homeowners investing in rooftop solar are not fairly compensated for their excess generation, noting that rooftop producers receive under 2¢ per kilowatt‑hour when the utility buys back power, while the utility sells that same kilowatt‑hour at a much higher retail rate.

Saul Gonzalez, a member of Sembrando Esperanza, urged council members to focus on the human impacts of rate increases. "For some, an increase of $20 to $30 a month may not seem like much," Gonzalez said, describing conversations with residents who already skip medications because they cannot afford them and noting that power is a medical necessity for some households that rely on refrigeration for insulin or oxygen concentrators.

Council did not take action on the rate case at the meeting. Staff and members of the public noted the council is an intervener in the Utility Commission process but that the rate case is decided by state regulators. Several council members said they would continue to monitor the case and raise affected residents' concerns with intervening counsel.

Clarifying details from testimony

- Coalition estimate: "40% of El Paso households" would be placed into excessive energy burden if the proposed rates pass (Sembrando Esperanza, testimony).

- Example billing data: 358 kWh/month household: current bill ~$58; projected under proposal ~$79 (31% rise); annual impact $161; hotter‑year single month could be $91 (testimony by Veronica Carvajal).

- Utility profits cited by Sam Solerio: average profit 2017–2019 ~$102,000,000; average profit 2021–2023 ~$140,000,000 (speaker provided these figures in public comment).

Why it matters

A rate increase set by the Utility Commission of Texas would raise monthly bills across customer classes and could disproportionately affect medically vulnerable and low‑income households. Public commenters tied the utility's proposed changes to both affordability concerns and to the structure of compensation for distributed solar generation.

What council can and cannot do

Council members can submit letters, intervene in a regulatory case and ask the company and state regulators to consider low‑income and medically vulnerable customers. The ultimate decision rests with the state regulatory process; no vote on the rate design was taken at this meeting.

Speakers

Veronica Carvajal — organizer, Sembrando Esperanza. Sam Solerio — electrical contractor, Solar United Neighbors Action (intervener in rate case). Saul Gonzalez — member, Sembrando Esperanza.

Ending

Council members said they would continue to monitor the rate proceeding and to advocate for protections for low‑income and medically dependent customers during the commission process.