January 29, 2021 • EPE Related News
Public Regulation Commission to consider audit of El Paso Electric fuel cost
LAS CRUCES – The New Mexico Public Regulation Commission decided Wednesday to consider a possible external audit of El Paso Electric’s fuel and purchase power cost adjustment clause — a provision that allows electric companies to change rates due to fluctuations in cost of fuel.
From December 2020 to January 2021, the cost increased about eightfold and significantly increased customer bills. George De La Torre, manager of Strategic Communications and Community Engagement for EPE, explained that the cost fluctuates month-to-month and is market-related and unpredictable.
Consideration of an audit was brought up by Stephen Fischmann, democratic commissioner for PRC District 5 which encompasses the southwestern portion of the state, including Las Cruces.
He said he has received several complaints or inquiries from constituents questioning the fluctuation in billing. EPE’s fuel cost is based on used kilowatts per hour and totals about 25 percent to 30 percent of a customer’s bill over the course of a year, he said.
The differences in cost each month brought up the question of possible miscalculations, but “we never got any clear answers about what was going on. And never got any specific answers about what was going on and why there was this huge … change from month to month,” Fischmann said.
During the PRC meeting Wednesday, Fischmann explained that EPE had not been audited on this issue since 2010.
He said he thought an audit would be helpful to check the accuracy and procedure in calculating the cost. “Just as a personal comment, I would say that 10 years for such a huge portion of the bill without a formal review or audit seems a little bit negligent on our part. A big part of the customer’s bill is not getting looked at,” Fischmann said.
Commissioners Cynthia Hall and Joseph Maestas, both Democrats, were in favor of considering an external audit, citing customer inquiries as a “red flag.” “It's our job to balance consumer against utility companies' interests and this seems like a real anomaly," Hall said.
Commissioner Jefferson Byrd, a Republican, said he did not think the six complaints commissioners had received were enough to constitute requiring an audit. He also mentioned that the fluctuations in fuel purchase cost seem to match the fluctuations in gas prices in the past few years.
The commissioners decided to allow their staff to look into the issue further, as well as the fuel cost calculated by other utility companies serving New Mexicans. The issue will be brought before the commission in about a month with a recommendation from staff.
De La Torre said EPE abides by all regulatory proceedings and will be happy to work with the PRC on any information they request.
"Our fuel clause or factor is required to be reviewed by the PRC at least every four years. The last year it was reviewed was in 2018, and the PRC unanimously approved our use of the FPPCAC in that proceeding," De La Torre said. "We file reports detailing the calculation of the factors every month, and annual reports every calendar year."
https://www.lcsun-news.com/story/news/2021/01/27/prc-consider-audit-el-paso-electric-fuel-cost/4277831001/
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