A case for the rate case!
The El Paso Electric Company filed a rate case with the Public Utility Commission to increase its rates in December 2009. The electric company’s franchise agreement with the city is also up for renewal and renegotiation. One of the perks or incentives is the electric company is offering:

• Go along with our rate increase and we will move one of our facilities down town, bringing 130 new people to the down town area.
El Paso has an average of 202 days of sun per year and is number 6 in the country for annual possible sunshine days. El Paso could easily be the solar capital of Texas. One of the keys for this happening is in the outcome of the negotiations taking place right now between the city and El Paso Electric.

• Without a favorable outcome for the electric company’s consumers, El Paso will never be able to reach its potential of being the mega solar area of Texas like the Permian Basin became for oil.

• It boils down to the fact that in New Mexico, the same electric company that serves El Paso, buys back the surplus renewable power generated through things such as solar panels from New Mexico consumers at a rate around 12 cents per kilowatt-hour.

• In El Paso they buy it back at a rate of around 3 cents. This is a huge disadvantage to El Paso.

I will get into the importance of the buyback rate in a moment. As the negotiating proceeds between the city and the El Paso Electric Company time is of the essence for the elected leaders at city hall to insist:

• That as part of any rate increase and Franchise renewal, the purchase of surplus renewable power generated on roof tops of private homes will be purchased by the electrical company at 12 cents per kilowatt-hour.

• That those 130 electrical employees be brought into the downtown area to.

If this happens you will see an explosion of installation of roof top solar panels, maybe even the manufacturing of solar panels here in the city and more research and development at UTEP thereby bringing more clean high paying energy jobs to this region. I fully understand that these negotiations are like a game of chicken or poker, lots of bluffing and posturing and ultimately if the utility company feels they are not getting a fair shot with the city they can take their case to Austin and have it heard by the Public Utility Commission. Here is where it’s going to take leadership and skilled diplomacy on the part of city leaders to persuade the electric company to do the right thing by being a catalyst in allowing El Paso to compete on an equal footing in trying to become the solar capital of Texas.

Here is why that buy back rate is so important. Today at the kilowatt-hour that the electric company is willing to pay you for your surplus renewable power (electricity), if you install solar panels on your home is around 13 to 15 years payback time. At 12 cents that payback is around 4 to 7 years, there are additional tings that the home owner can do that will help the payback time be shorter, such as installing energy efficient light bulbs, weather stripping and extra insulation. Buying a solar home and amortizing the extra cost of solar over 30 years is negligible compared to the savings every month on the family budget. If we can get to where, instead of having to be concerned about an electrical bill, we actually receive a check in the mail each month from the electric company, there would be an explosion in the El Paso real estate market, homes would become more affordable and as demand for solar increases, the cost of solar panels will decrease.

So contact your city Representatives and don’t let them be hoodwinked by the utility company. This is one of those rare opportunities for El Paso to put itself on the map. let’s not miss out on being the capital of solar energy in the South West. The outcome of this rate case and franchise renewal is pivotal to our future.