El Paso Electric Seeks Texas PUC Approval To Build New Gas-fired Generation
November 25,2019
El Paso Electric Company (EPE or Company) filed a petition with the Public Utility Commission of Texas seeking authorization to
amend its Certificate of Convenience and Necessity (CCN) to include one new approximately
228 Megawatt (MW) natural gas-fired unit to be constructed at EPE's existing Newman
Generating Station in El Paso County and the City of El Paso (Newman Unit 6)
Any new build could potentially create new stranded costs, to the extent EPE ever transitions to retail electric competition
A witness for EPE said that the addition of Newman Unit 6 would not impact the implementation of retail competition in EPE's service area
EPE's witness said, "Under PURA Section 39.553 and 16 TAC ยง 25.421, 'Transition to Competition
for a Certain Area Outside the Electric Reliability Council of Texas Region,' (EPE
Competition Rule) the timeline for implementation of retail competition in EPE's
service territory is dependent upon completion of a five-stage process, the first of which
is development, approval and operation of a regional transmission organization
('RTO') for the EPE region. While EPE is an active participant in the development of
WestConnect which may result in the formation of an RTO, no plan is in place to form
or request FERC approval of an RTO. Approval of a CCN for the proposed generating
unit will not affect the development of an RTO in which EPE could participate. The
approval of this CCN will also not affect any subsequent stage toward full retail
competition in EPE's service area."