Already paying what it calls the highest electric rates for a refiner in Texas, and facing another El Paso Electric rate increase, Western Refining is considering building a cogeneration plant to free itself from monopoly provider El Paso Electric, El Paso Inc. reports

EPE's rates, Western Refining told El Paso Inc., hinders its ability to compete with other Texas refineries

El Paso Electric is one of the areas of Texas which has not been opened to customer choice

EnergyChoiceMatters.com previously noted that despite EPE and certain other non-choice areas of Texas (Entergy, SPS) having rates in excess of ERCOT's choice areas (at about 10-11¢ all-in at 1,000 kWh, versus choice fixed plans without minimum usage fees being in the 5-6¢ range all-in per 1,000 kWh at Oncor, with other plans as low as under 2¢), the large "competitive" providers in Texas, which also own merchant generation, have in recent years been more interested in rolling back choice in ERCOT through mandatory capacity payments, rather than expanding choice to fulfill the promise of SB 7

Although the so-called leaders in competitive energy have not launched any efforts to open new areas of Texas to choice, individual customers, frustrated with their inability to access the lower rates of the ERCOT choice areas, have pushed for choice (see efforts at Cap Rock which eventually led to choice expansion, and efforts at EPE)

As eloquently put by Chris Hendrix, Director of Markets and Compliance for Wal-Mart, earlier this year, there is "no rational reason" for electric choice not to be offered at Entergy Texas, Southwestern Public Service, and the ERCOT municipals and cooperatives (non opt-in entities, or NOIEs)

See El Paso Inc. for the full story on Western Refining