If you’re an El Paso Electric customer in Las Cruces, you’ve probably already heard the news. EPE recently announced they’re filing a rate case with the New Mexico Public Regulation Commission—their first since 2015. Here’s what’s actually happening, what it means for your monthly bill, and what you can do right now to protect yourself.
In this article
- What El Paso Electric is proposing
- Rate increase phases and timeline
- Low-income customer program
- Why this is happening now
- How battery storage protects you
- Already have solar? What to check
- Frequently asked questions
What El Paso Electric is proposing
El Paso Electric is requesting a $70 million increase in base rates, tied to $400 million in infrastructure investments made over the past decade. That includes upgraded power poles, smart metering across New Mexico, and grid reliability improvements.
The important thing to know:
Nothing changes until the PRC makes a final decision, which typically takes about a year. If approved on schedule, Phase 1 would begin in early 2027.
Rate Increase Phases & Timeline
EPE is proposing a phased approach for residential customers, which means the increase would roll out in two stages rather than all at once:
- Phase 1: About 50 cents more per day on your monthly bill. Roughly $15 more per month on your base rate charge.
- Phase 2: Another 50 cents is added after the first period ends for about a full $1.00/day increase.
These are proposed figures — the NMPRC may adjust the amounts up or down during its review. You can monitor the proceeding directly on the NMPRC’s electric utility docket page.
It’s also worth remembering that base rates are only part of your bill. Fuel adjustment charges — which fluctuate monthly with natural gas prices — affect every kilowatt-hour you purchase from EPE and have been climbing independently of this rate case.
What About Low-Income Customers?
One notable element of EPE’s proposal is New Mexico’s first-ever utility low-income customer program. Qualifying households would have their base customer charge waived entirely, effectively eliminating any rate increase during Phase 1. If you think your household might qualify, it’s worth contacting EPE directly to ask about eligibility criteria before the program is finalized.
For more on utility assistance programs in New Mexico, the NM Human Services Department’s LIHEAP program may also provide bill relief independent of this rate case.
Why Is This Happening Now?
Several forces are converging to drive utility rates higher — not just in New Mexico, but nationally:
- Fuel costs are up. Every kilowatt hour you buy from EPE carries a fuel adjustment charge that fluctuates with natural gas prices. Those costs have been climbing and directly impact your bill every month.
- The grid needed investment. For years, flat energy demand meant utilities across the country delayed infrastructure upgrades. EPE has been investing in grid resilience for the past four years — steel poles replacing older ones in vulnerable areas, smart meters, and distribution improvements. That investment is now coming back through rates.
- Demand is growing. AI, data centers, electrification, and population growth are all putting upward pressure on energy costs nationally. EPE currently has zero data centers in its New Mexico service territory — but that’s expected to change, and they’re preparing the infrastructure now.
This Is the Time to Act
These are structural trends, not temporary ones. This rate increase is unlikely to be the last.
How Battery Storage Protects You from Rising Rates
Rate increases like this one are exactly why we talk to customers about battery storage. If you already have solar panels, you’re ahead of most people — but solar alone doesn’t protect you when the grid goes down or when EPE adjusts peak-hour rates.
A battery storage system lets you:
- Sell less excess energy back to El Paso Electric and store the extra energy your solar panels produce
- Significantly reduce grid usage with your stored energy to use during future expensive Time of Day rates
- Lock in more energy independence before rate structures change and electricity prices increases
- Use that stored power at night or during a grid outage
Already Have Solar? Here’s What to Check
If your system is between 10 and 15 years old, now is a great time to get it evaluated. Newer inverter technology and battery solutions — like the Fox ESS system we install — have made adding storage to existing solar systems more straightforward than ever. In most cases, you don’t need to replace your whole system to add a battery.
Get a Free Quote — No Obligation
Our team specializes in battery expansions for existing solar customers right here in Las Cruces. We’ll evaluate your current system and walk you through your options.
Frequently asked questions
- When will my EPE bill actually change?
- Nothing changes until the PRC issues a final decision, which typically takes about a year from filing. If approved on schedule, Phase 1 would begin in early 2027.
- How much more will I pay per month?
- Phase 1 proposes roughly 50 cents more per day — about $15/month. Phase 2 would add another 50 cents per day on top of that, for a total of approximately $1 more per day compared to today’s rates.
- Is this EPE’s first rate increase in a long time?
- Yes. This is EPE’s first rate case filing since 2015 — a decade without a base rate change.
- What if I’m a low-income customer?
- EPE is proposing New Mexico’s first-ever low-income customer program as part of this filing. Qualifying households would have the base customer charge waived entirely, which would eliminate any Phase 1 increase for those customers.
- Why is EPE raising rates now?
- Three main reasons: rising natural gas fuel costs that affect every bill, $400 million in infrastructure investments made over the past decade that are now being recovered through rates, and growing energy demand driven by AI, data centers, and electrification.
- Will solar panels protect me from this rate increase?
- Solar helps, but it doesn’t fully protect you — especially during outages or when EPE adjusts peak-hour pricing. Adding battery storage lets you store daytime solar energy for use at night or during high-rate periods, reducing what you pull from the grid.
- I already have solar. Can I add battery storage without replacing my whole system?
- In most cases, yes. Newer battery solutions like the Fox ESS system are designed to integrate with existing solar installations. A system evaluation will confirm what’s possible for your specific setup.
- How do I follow this rate case as it moves through the PRC?
- You can look up the EPE rate case filing directly on the PRC’s case lookup and e-docket system.
- You can look up the EPE rate case filing directly on the PRC’s case lookup and e-docket system.