El Pasoans’ electric and water bills have increased significantly this year as a result of recent rate hikes, and Texas Gas Service is now joining the trend.
The Texas Railroad Commission approved a $8.8 million, or 6%, rate increase in the gas company’s West Texas service area on Tuesday, marking the sixth year in a row that the Austin-based natural-gas utility has raised El Paso prices.
Natural-gas prices in the El Paso area will rise by an average of $3.40 per month starting in October, bringing the average monthly cost to $38.82, according to Texas Gas authorities. Gas costs for commercial customers in El Paso will rise by an average of $5.93 per month, but overall commercial bills may vary greatly.
Texas Gas is the most recent utility in El Paso to boost its rates. The company’s planned rate hike was rejected by the El Paso City Council in June. However, after a hearing examiner decided in the matter, the Railroad Commission permitted the corporation to hike its West Texas area rates at a lower rate than it had sought.
According to Norman Gordon, an El Paso attorney who represents the city in its rate battles with Texas Gas and El Paso Electric, “the city’s position was there should be no rise.” “The City Council felt that (Texas Gas) had not demonstrated a necessity for the desired increase.”
Texas Gas and the other utilities that raised their rates this year claimed that the increases were necessary to cover rising costs and investments in their systems.
When El Pasoans factor in El Paso Electric’s increased summer rate and temporary surcharges, their electric, gas, and water bills will increase by over $22 per month on average.
Gordon mentioned that the City Council was successful in convincing El Paso Electric to lower its $71.5 million rate increase proposal for the El Paso area this year.
El Paso Electric’s $37 million rate increase received final approval from the Public Utility Commission of Texas in August, almost half of what the business had requested. By state law, the company was permitted to begin charging customers for the majority of the new rates in April. In October, the rate rise will be accompanied by temporary fees totaling an average of $2.70 per month.
For the Four Corners coal-fired power plant in New Mexico, the surcharges are for retroactive rate charges from January to March, rate case fees, and costs later approved.
The cost of utilities varies according on the season. With the new rates, El Paso residents will be spending roughly $200 per month on average for water, gas, and electric utility bills by next summer.
According to data from El Paso Electric, residential customers’ rates jumped by an average of $8.14 per month in summer to a total of $93.79, and an average winter bill will increase by $7.71 per month to a total of $65.28, according to the company. Because of the temporary levies that begin in October, summer costs will rise even more to an average monthly price of $97.09 in 2017.
In March, El Paso Water, the city’s water, sewer, and stormwater provider, raised rates. As a result, the average residential water bill climbed $7.68 to $61.67, according to the company, based on an average of combined residential bills from March 1 to August 31. Winter water costs would be cheaper on average because water usage is lower, but the utility had no immediate winter bill statistics.
According to Texas Gas officials, the utility filed a $12.8 million rate increase request with the Texas Railroad Commission and the city of El Paso on March 30 in order to recover about $40 million in system costs and improvements for part of 2014 and 2015 for its newly combined West Texas service area. According to a corporate spokesman, about $37 million of the costs and improvements were spent in the El Paso area.
According to Larry Graham, the company’s manager of community relations, the gas utility was unable to reach an agreement with El Paso City Council, as it frequently does, and the rate case was sent to the Railroad Commission for a hearing in July. After that, a hearing examiner presented a proposal for determination, which included the $8.8 million increase that was suggested. The three commissioners of the state agency gave their approval on Tuesday.
“The parties involved in this (rate) case have spent a significant amount of time and effort to ensure that we reach a final outcome that fairly balances the needs of our customers, shareholders, and employees, and ensures that we can adequately fund and maintain a safe and reliable gas system,” Texas Gas communications manager Christy Penders said in a statement released before the Railroad Commission’s decision.
The West Texas service region includes towns in El Paso County, Dell City, and many towns in the Permian Basin, in addition to El Paso. According to a business spokesman, the service region contains over 256,000 Texas Gas customers, including over 244,000 in El Paso County.
Graham said the utility’s last full-fledged rate case was in 2009. However, El Paso City Council has approved rate increases in the last five years, notably in 2015, when the average monthly residential bill jumped $2.51, according to Texas Gas.
According to Gordon, the city’s utility rate expert, City Council cannot consider the total impact of multiple utility rate increases. El Paso Electric and Texas Gas rate requests must be examined independently, he added.
The El Paso Public Service Board, which is chosen by City Council, approves water rate hikes. The mayor is also a member of the board of directors.
How much does a typical water bill in El Paso, TX cost?
According to utility projections, the average monthly home water bill will be $66.99. The overall average household utility bill will be $119.54 per month, including fixed city expenses such as recycling, garbage collection, stormwater and franchise fees.
This is the eighth year in a row that water and sewer rates have gone up, and the second year in a row that stormwater rates have gone up.
El Paso Water’s $876.7 million overall budget for fiscal year 2022, which was also authorized by the PSB on Wednesday, includes the rate hikes. From this year’s $508.3 million budget, that’s a jump of more than $300 million, or 72 percent.
How much does a typical electric bill in El Paso cost?
El Paso Electric Company customers pay an average monthly home electricity rate of $85.64, compared to a national average of $119.32. The supplier’s customers pay 28.23% less than the rest of the country.
Is water in El Paso expensive?
El Paso Water officials attempted to cushion the blow of the fee hike by providing the following information: Even with the increased hike, El Paso’s average water and sewer cost is the second lowest among Texas’ big cities. Officials claim that only Laredo has a cheaper average bill.
El Paso Water’s monthly cost for water and sewage will be $56.70 this year, excluding the $4.25 stormwater levy. The bill for Laredo is $52.79. According to El Paso Water data, Corpus Christi has the highest cost at $115.94.
Water and sewer prices are significantly higher in Albuquerque, Santa Fe, Phoenix, and Tucson than in El Paso, according to water utility data.
What is the cost of living in El Paso, Texas?
(KTSM) EL PASO, Texas Another advantage that the Sun City has garnered is its low cost of living.
The list was created based on the average monthly expenses of one-bedroom apartments, utilities, internet, fuel, and water, according to a press release.
“El Pasoans recognize that we are one of the best communities to live in, and we’re getting even more dynamic every year as we invest in ourselves,” said City Manager Tommy Gonzalez.
The community was also praised for its wealth of outdoor activities and was listed among the top 20 most affordable college towns.
“Our low cost of living, outstanding workforce, and commitment to providing exceptional service that supports a high quality of life for our community continue to get national praise,” Gonzalez added.
Is it affordable to live in El Paso?
El Paso’s affordability is one of the area’s primary selling points for new inhabitants, having been named the city with the lowest cost of living in the United States. Because there is no state income tax, earnings stretch a little further in the local home market.
Is El Paso a cost-effective city?
El Paso, according to a recent study conducted by GoodHire, a background-screening software company, is one of the least affordable cities in the United States. The study looked at factors such as wage growth, unemployment rate, job growth, job openings, rental prices, real estate sale prices, and real per capita personal income.
In Texas, how much do utility bills cost per month?
Texas is a mixed bag when it comes to utilities. This is due to the fact that some regions of the state have a deregulated utility market, while others, such as El Paso and San Antonio, have utility monopolies. Customers in deregulated markets pay more for utilities than those in monopolistic areas, according to the Texas Tribune. Despite this, the deregulated market is becoming more affordable, and savvy shoppers can find bargains.
The average monthly energy cost in Texas in 2021 was $132.59, according to statistics from the US Energy Information Administration (EIA) from 2020. That’s over 10% more than the national average of $117.46.
How much should I set aside each month for gas?
The average American spends between $150 and $200 each month on gas, to give you a ballpark estimate for your budget. However, your actual gasoline prices will be determined by a number of factors, including where you live, how frequently you drive, and the fuel grade you use in your vehicle.
Is it true that gas costs more than electricity?
On the surface, the cost of gas vs. electric heating appears to be significantly lower. A single kilowatt-hour (kWh) of gas costs roughly 4.65p, whereas a kWh of electricity costs more than 20p on average. However, this does not imply that electric heating costs four times as much as gas!
So, is electric or gas heat cheaper?
Using off-peak electricity, traditional electric heating can be twice as expensive as gas heating.
Electric heaters are about 100 percent efficient, which is why they are so popular. In other words, they convert all of the electricity they utilize into heat. A gas or oil-fired central heating system is not the same. Even a boiler with an A rating wastes roughly 10% of the energy in its fuel. It’s possible that some heat is lost through the piping. The boiler and its pumps require only a tiny amount of electricity to operate.
How can you make your electric heating system more cost-effective?
Electric heating systems that are low-cost can typically be timed to take advantage of off-peak tariffs as well. When the average cost of 1kWh of power is less than 10p, it is considered off-peak. You can also get smart controllers for your home’s heating that you can operate from your phone. You don’t even have to be home to turn it on or off, or to set a timer for it to heat your home when you return.