El Paso Electric
| Company type | Public |
|---|---|
| Industry | Electric utility |
| Founded | 1901 |
| Headquarters | El Paso, Texas , United States |
Area served | Western Texas and Southern New Mexico |
| Products | Electricity generation, transmission, and distribution |
| Owner | Infrastructure Investments Fund (IIF), affiliated with J.P. Morgan (since 2020) |
| Website | www |
El Paso Electric is a public utility company headquartered in Texas that specializes in the production, transmission, and distribution of electricity throughout western Texas and southern New Mexico. Its diverse energy mix comprises nuclear power, natural gas, purchased electricity, as well as solar and wind resources. The company manages six power plants with a total dependable capacity nearing 2,010 megawatts. It supplies electricity to approximately 437,000 customers spanning residential, commercial, industrial, governmental, and wholesale sectors.
The utility mainly delivers power directly to retail consumers in El Paso, Texas and Las Cruces, New Mexico, while also selling electricity to other utilities and energy marketers. Unlike many Texas utilities, El Paso Electric operates as the exclusive service provider within its territory.
In 2020, ownership of El Paso Electric transferred to the Infrastructure Investments Fund (IIF), affiliated with the investment bank J.P. Morgan, marking its transition from a publicly traded entity listed on the New York Stock Exchange under the symbol EE.
Established in 1901, El Paso Electric’s corporate offices are located in Stanton Tower in Downtown El Paso.
History
El Paso Electric (EPE) commenced its activities on August 30, 1901, initially operating as the El Paso Electric Railway Company. Its early services included mule-drawn streetcars which were replaced by electric streetcars in 1902. The company is also noted for reportedly providing electrical power to Nikola Tesla’s property in Colorado.
By 1925, the company pivoted toward electric power generation and delivery, adopting the name El Paso Electric Company and obtaining regulatory approval to operate within New Mexico.
Today, EPE serves close to 400,000 retail and wholesale customers across a service area extending from Hatch, New Mexico to Van Horn, Texas.
As of 2013, EPE operated a network of 32 electric vehicle charging stations compatible with vehicles such as the Nissan Leaf and Chevrolet Volt. The utility encourages electric vehicle usage through its Plug-in Electric Vehicle and Charging Infrastructure Plan (PEVCIP) focused on the Rio Grande Valley region.
In 2019, El Paso Electric reported annual operating revenues of $862 million alongside a net income of $123 million.
2020 Sale to Infrastructure Investments Fund
On July 29, 2020, the Infrastructure Investments Fund (IIF) completed its acquisition of El Paso Electric following approval by 99.61% of shareholders. The transaction valued at $4.3 billion involved IIF taking on $1.5 billion in EPE debt and purchasing outstanding shares at $68.25 each for a total equity payment of $2.8 billion. IIF pledged to keep EPE’s headquarters in El Paso and retain its workforce for a minimum of five years. Board members received compensation packages including cash payouts and stock awards ranging from $800,000 up to more than $8.8 million.
Prior to the acquisition, any rate adjustments by EPE required authorization from city councils and state regulatory bodies due to its monopoly status in the region. Some local officials expressed opposition to the sale over fears that future rate increases might occur without sufficient oversight. As part of the deal terms, customers received one-time bill credits totaling $21 million for Texas residents and $8.7 million for those in New Mexico, resulting in average monthly bill reductions between $0.88 and $1.37.
Additionally, EPE and IIF committed to establishing a $100 million Economic Sustainability Fund aimed at fostering regional growth—allocating $80 million over 15 years for initiatives in El Paso and $20 million over two decades for projects in New Mexico.
Transmission system
El Paso Electric's transmission infrastructure functions at voltage levels of 115,000 volts and 345,000 volts, featuring two 115 kV connections that link to Mexico.
Generating plants
El Paso Electric possesses a 15.8% ownership interest in the Palo Verde Nuclear Generating Station located near Tonopah, Arizona. Additionally, the company owns the Rio Grande, Newman, Copper, and Montana Power Stations situated in El Paso, as well as the Hueco Mountain Wind Ranch in Hudspeth County, Texas.
On February 20, 2014, El Paso Electric collaborated with Juwi Solar, Inc., a Colorado-based firm, to establish a 10 MW solar power plant adjacent to the Newman Generation Station in Northeast El Paso. Juwi Solar is responsible for the development, design, construction, and operational management of this facility. Scheduled for completion by the end of 2014, the project is designed to generate electricity sufficient to power over 3,800 residences annually across roughly 100 acres leased in cooperation with El Paso Water Utilities (EPWU). Currently, EPE incorporates 47 MW of solar capacity and has acquired an additional 50 MW anticipated to be operational by summer 2014. Solar power is projected to account for 5% of EPE's energy generation mix through these initiatives and long-term power purchase agreements.
Lawsuits
In January 2003, El Paso Electric was subject to litigation concerning allegations of deceptive and inaccurate disclosures tied to unlawful dealings with Enron Corporation and overstated revenue figures. The matter was resolved in 2005 with a $10 million settlement.