El Paso Electricity Rates
El Paso is a Texas city that isn’t on the Texas grid. El Paso Electric connects to the Western Interconnection, not ERCOT — which is why the city stayed on during Winter Storm Uri. After a 13% rate hike in February 2026, the average residential rate is 14.1¢/kWh.
A Separate Grid, a Monopoly Bill
El Paso Electric serves about 450,000 customers in West Texas and southern New Mexico. Unlike Austin Energy or CPS Energy, it is investor-owned (IIF / J.P. Morgan) and rate-regulated by the Texas PUC. The 2026 case was its first in five years.
It is the only major Texas utility on the Western Interconnection, serves Texas and New Mexico under two regulators, and takes 665 MW of carbon-free baseload from Palo Verde in Arizona. Since 2020 it has invested over $1 billion, including the 228 MW Newman Unit 6 gas plant (2024).
The utility asked for $22.39/month; the PUC approved $13.71. The customer charge nearly doubled from $9.25 to $13.71. Summer energy is 12.90¢ for the first 600 kWh and 13.90¢ above that. Rooftop solar customers now face a $28–$48/month demand charge.
Desert Bills: A Sharp Seasonal Swing
Summer highs often top 105°F. Winters are dry and mild, so heating is cheap compared with East Texas — but cooling is not.
Estimated monthly bill for a typical El Paso home
Bills run about $65 in Dec and $192 in Jul. Little winter heat, heavy May–September cooling. El Paso is also the only major Texas city on Mountain Time.
El Paso Electric Generation Mix
Palo Verde (665 MW) is the carbon-free backbone. Local gas plants (Newman, Montana, Rio Grande, Copper) cover dispatch. Renewables were 45% of 2025 retail energy. Targets: 80% carbon-free by 2035, 100% by 2045.
Best Solar Potential in Texas
El Paso gets 6.1 peak sun hours a day, the most of any major Texas city. Rooftop solar produces well here, but the 2026 rate case added a solar demand charge.
The Solar Demand Charge Controversy
The 2026 case added a $28–$48/month demand charge for rooftop solar. The utility says it covers grid costs; advocates say it penalizes solar. It typically adds 1–2 years to payback.
Time-of-Use Option
The TOD rate is 23.98¢/kWh weekdays 12–6 PM in summer and 7.00¢ off-peak. Shift AC to mornings and evenings, or pair solar with a battery, and it can cut the bill.
The Fort Bliss Effect
Fort Bliss is one of El Paso Electric’s largest customers and has its own solar and microgrid. On-post housing is still on El Paso Electric; off-post housing uses standard residential rates.
El Paso Electricity FAQ
Rates, the non-ERCOT grid, and El Paso Electric service.
Can I choose my electricity provider in El Paso?
No. El Paso Electric is the only provider. El Paso is not in the deregulated ERCOT market.
Is El Paso on the Texas power grid (ERCOT)?
No. It is the only major Texas city outside ERCOT. It connects to the Western Interconnection, which is why it stayed on during Winter Storm Uri. El Paso also runs on Mountain Time.
What is the average electricity rate in El Paso?
About 14.1¢/kWh after the 2026 increase. Typical bill: $111, from ~$72 in winter to $145+ in summer.
Why did El Paso Electric rates increase in 2026?
First rate case in five years. The PUC approved $13.71/month after $1 billion in investments since 2020, including Newman Unit 6. The customer charge rose from $9.25 to $13.71.
Where does El Paso’s electricity come from?
Natural gas plants in the El Paso area, nuclear from Palo Verde in Arizona (665 MW), and growing solar (238+ MW). Renewables were 45% of 2025 retail energy.
How do I report a power outage in El Paso?
Call El Paso Electric at 915-877-3400 or report at epelectric.com. Monsoon storms (July–September) cause most outages.