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El Paso Electric Proposes Base Rate Increase
Utility files case with New Mexico regulators to support local reliability and infrastructure upgrades.
Mar. 28, 2026 at 2:24am
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El Paso Electric, the electric utility serving the El Paso, Texas and Las Cruces, New Mexico region, has announced it is filing a general rate case with the New Mexico Public Regulation Commission (NMPRC). The rate case filing seeks to adjust the utility's base rates to support ongoing investments in local grid reliability and infrastructure upgrades across its service area.
Why it matters
El Paso Electric's proposed rate increase could impact electricity costs for residential, commercial, and industrial customers across southern New Mexico. The utility says the additional revenue is needed to fund critical system improvements, but consumer advocates may challenge the request, arguing the increase is unnecessary or too high during a period of economic uncertainty.
The details
In its filing, El Paso Electric is requesting an increase to its base rates, which make up the majority of a customer's monthly electric bill. The utility says the additional revenue is required to pay for upgrades to aging infrastructure, new technologies to improve grid reliability, and investments in renewable energy sources. If approved by the NMPRC, the rate hike would be the first for El Paso Electric since 2015.
- El Paso Electric filed the general rate case with the NMPRC on March 27, 2026.
- The NMPRC is expected to make a decision on the proposed rate increase by the end of 2026.
The players
El Paso Electric
The electric utility that provides service to the El Paso, Texas and Las Cruces, New Mexico region. It is seeking a base rate increase to fund infrastructure upgrades and grid modernization efforts.
New Mexico Public Regulation Commission (NMPRC)
The state regulatory agency that oversees electric, natural gas, telecommunications, and other utilities in New Mexico. It will review and rule on El Paso Electric's proposed rate increase.
What they’re saying
“We must make critical investments in our local energy grid to ensure continued reliability for our customers in the years ahead.”
— Kelly Tomblin, CEO, El Paso Electric
“Ratepayers should not have to shoulder the burden of these infrastructure upgrades, especially during a time of economic uncertainty.”
— Susan Martinez, Consumer Advocate, New Mexico Public Interest Research Group
What’s next
The NMPRC will hold public hearings and accept written comments from stakeholders before making a final decision on El Paso Electric's rate increase request by the end of 2026.
The takeaway
This rate case highlights the ongoing tension between utility companies needing to fund grid modernization efforts and consumer advocates pushing back on higher electricity costs. The NMPRC's ruling will determine how much of the proposed increase, if any, El Paso Electric customers will ultimately have to pay.
