Electric Co. asks to boost El Pasoans' bills again

Vic Kolenc El Paso Times El Paso Electric is again asking state regulators for permission to increase El Pasoans' electric bills to pay for rising costs of natural gas, which fuels some of the company's power plants.

El Paso Electric on Monday asked the Texas Public Utility Commission to allow the company to increase the average El Paso residential bill 12 percent, or $6.48 a month, beginning March 1.

Most commercial customers would see the same increase, said Gary Hedrick, executive vice president and chief financial and administrative officer for the utility.

This comes on top of an average 7 percent, or $3.77 a month, increase that took effect in September, also to pay for rising natural-gas costs.

At the same time, El Pasoans are being hit with skyrocketing natural-gas bills. Southern Union Gas officials expect the average home heating bill in January to be $120, up from $80 in December.

"In August, we thought (natural-gas) prices would stabilize, and what happened is they went crazy after our projections," Hedrick said.

Natural gas fuels three of El Paso Electric's power plants, which, along with a small percentage of electricity bought off the open market, provide about 40 percent of the utility's electricity. More than half the utility's power comes from cheaper nuclear and coal power.

Like most consumers, Joe Ramirez, an El Paso truck driver, isn't happy with any utility increases.

"What can we do? We have to keep on paying," Ramirez said. "I guess we have to work a little harder," he said.

The proposed increase is divided into two parts: $4.19 would cover natural-gas costs for a year beginning in March, and $2.29 would be a surcharge to cover a $20 million bill the utility rang up for gas costs from May to November of last year -- money the utility said it has yet to get from customers.

Las Cruces area customers won't see the increase because El Paso Electric froze their fuel charges until April as part of a 1998 rate agreement.

Mayor Carlos Ramirez said the city will file with the state Public Utility Commission to be a party in the latest El Paso Electric fuel-charge case, as it did with the fuel-charge increase El Paso Electric filed in August.

The city's objective will be to make sure "the fuel costs are justified -- that they are only passing through the fuel costs the company is incurring," Ramirez said.

Vic Kolenc may be reached at vkolenc@elpasotimes.com

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-- Martin Thompson (mthom1927@aol.com), January 09, 2001