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by Julia Spencer
EL PASO, TEXAS (KFOX14/CBS4) — El Paso Electric's proposed rate increase, which could add over $22 to monthly bills, is facing opposition as Texas administrative law judges recommend modifications to the request.
The utility company initially sought to raise the average residential bill by about $22 a month, generating an additional $93 million annually to fund new projects.
However, after El Paso city leaders rejected the proposal in June, the city of El Paso requested a contested hearing with the state.
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The judges are now suggesting changes, including reducing the company's requested profit from 10.7% to 9.4%.
Additionally, the recommended proposal would maintain current bills for rooftop solar customers and require New Mexico customers to share the cost of the Newman 6 power plant, rather than placing the burden solely on Texas customers.
Residents have expressed mixed feelings about the proposed rate hike.
One resident said, "Honestly, I don't like it, but that's the way everything is going in the world."
Another added, "People in the economy is not doing good right now and to have a spike in your electricity, you know, a necessity that you need to live."
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The city of El Paso stated that the recommendation comes after the utility refused to negotiate, leading to a hearing process that hadn't occurred in over 30 years.
A final decision on the rate increase now rests with the Public Utility Commission.
Below you can read the city of El Paso's full release below:
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