El Paso Electric Ordered to Give Refunds

By Beau Bagley - Sports Anchor/Reporter
Friday, January 29, 2010 - 8:10pm

ALBUQUERQUE--- The New Mexico Public Regulation Commission that overlooks utilities throughout the state has ordered El Paso Electric to give back $5.6 million to customers in Dona Ana and Otero counties.
But the electric company won't do it without a fight.

In Santa Teresa, a smaller number at the top of an electric bill always puts a smile on one homeowner's face.

"It's always great to get money back. It's usually the other way around," said Randy Burt, who's lived in his home since 2002.

Now he's learned, he may be getting a refund for what's called a "franchise fee."

Dona Ana and Otero counties have a contract with E.P. Electric that allows the utility the right to use the public streets and highways, for a price.
El Paso Electric passed that cost on to consumers.

Yet the NMPRC board issued an order requiring the utility to not only stop collecting this fee, but repay $5.6 million to electric customers.

"Doña Ana and Otero are the only two counties we know who are charging these fees to a utility and I see no reason to condone passing these costs on to consumers," said Commissioner Sandy Jones at the public meeting Tuesday.

According to commissioners, El Paso Electric must pay the refund over a 3-year period, plus interest.

"El Paso Electric filed a notice of appeal with the New Mexico Supreme Court. We are working together with the counties to resolve this issue through the courts and the legislature," said spokeswoman Teresa Souza.

"I would only hope that whatever is decided is fair for either party whichever way it goes. It's not a great deal of money but, then again, like I say, every little bit helps," said Burt.

While Dona Ana County has not joined the lawsuit, the county spokesman says they'll be watching it closely. 

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