Molly Ayala
El Paso Electric (EPE) is a Texas-based public utility company that provides electricity to approximately 400,000 retail and wholesale customers in west Texas and southern New Mexico. Notably, EPE is not connected to the Texas power grid, which is managed by the Electric Reliability Council of Texas (ERCOT). Instead, EPE sources its power from various locations, including a power plant in New Mexico, the Palo Verde Nuclear Generating Station in Arizona, and the Montana Power Station. EPE has also invested in renewable energy sources, such as solar power, and has committed to promoting the adoption of electric vehicles.
| Characteristics | Values |
|---|---|
| Electric grid | Not on the Texas grid |
| Power sources | Nuclear fuel, natural gas, purchased power, solar and wind turbines |
| Electricity provider | El Paso Electric (EPE) |
| Number of charging stations | 32 |
| Number of electric car charging stations | 32 |
| Revenue in 2019 | $862 million |
| Net income in 2019 | $123 million |
| Date of sale to IIF | July 29, 2020 |
| Sale value | $4.3 billion |
| Debt assumed by IIF | $1.5 billion |
| Stock purchase price | $68.25 per share |
| Total stock purchase value | $2.8 billion |
| Number of customers | 400,000-437,000 |
| Solar power in generation mix | 47 MWs |
| Additional solar power secured | 50 MWs |
| Percentage of dedicated generation from solar energy | 5% |
| Transmission system voltages | 115,000 volts and 345,000 volts |
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What You'll Learn
El Paso Electric (EPE) is the sole electricity provider for the region
El Paso Electric (EPE) is the sole electricity provider for the El Paso region. The company was founded in 1901 and began serving its customers on August 30, 1901, as the El Paso Electric Railway Company. The company initially provided transportation via mule-drawn streetcars, which were replaced with electric streetcars in 1902. By 1925, the company's primary business had shifted to producing and distributing electricity, and it changed its name to the El Paso Electric Company. Today, EPE provides generation, transmission, and distribution services to approximately 400,000-437,000 retail and wholesale customers in a 10,000-square-mile area of the Rio Grande Valley in west Texas and southern New Mexico.
EPE is not connected to the Texas power grid and instead sources its power from a variety of energy sources and power plants. These include nuclear fuel, natural gas, purchased power, solar energy, and wind turbines. EPE owns six electrical generating facilities with a net dependable generating capacity of approximately 2,010 megawatts. Some of the power plants owned by EPE include the Palo Verde Nuclear Generating Station in Arizona, the Rio Grande Power Station in New Mexico, the Newman Power Station, the Copper Power Station, the Montana Power Station, and the Hueco Mountain Wind Ranch in Texas.
In addition to traditional electricity generation, EPE is also working to promote the adoption of electric vehicles in the region. As of 2013, the company had 32 electric car charging stations in its service area, and it has implemented the Plug-in Electric Vehicle and Charging Infrastructure Plan (PEVCIP) for the Rio Grande Valley region. EPE is also investing in renewable energy sources, such as solar energy, with the construction of a new solar facility expected to power over 3,800 homes.
EPE's position as the sole electricity provider in the region has had implications for electricity rates and regulatory approval processes. Prior to its acquisition by the Infrastructure Investments Fund (IIF) in 2020, any increases in electricity rates had to be approved by the city council and state regulators. As part of the acquisition agreement, EPE and IIF committed to investing $100 million in an Economic Sustainability Fund to promote economic development in the region, with $80 million allocated for the El Paso region and $20 million for New Mexico over 15 and 20 years, respectively.
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EPE is not part of the Texas power grid
El Paso Electric (EPE) is a Texas-based public utility company that engages in the generation, transmission, and distribution of electricity in west Texas and southern New Mexico. It is the sole provider of electricity for the region, serving approximately 400,000 retail and wholesale customers in a 10,000-square-mile area of the Rio Grande Valley.
The decision to connect to the Western grid was made about 60 years ago due to geographical considerations. El Paso Electric connected to the Western grid in Albuquerque, bringing in power from the Four Corners power plant in New Mexico. Additional connections were later made in Arizona to bring power from the Palo Verde Nuclear Generating Station, of which EPE is a part owner.
Being part of the Western grid has helped El Paso escape outages during periods of extreme cold. In February 2021, for example, the Texas grid experienced massive power outages due to power plant problems caused by freezing temperatures. EPE, however, did not face the same issues, as the colder weather in El Paso was less severe and did not cause the same natural gas supply problems seen in other parts of Texas.
In addition to its nuclear power sources, EPE is also committed to investing in renewable energy sources. The company has plans to build a solar energy facility in Northeast El Paso, which will help power over 3,800 homes. EPE is also working to expand the adoption of electric vehicles through its Plug-in Electric Vehicle and Charging Infrastructure Plan (PEVCIP) for the Rio Grande Valley region.
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EPE's power sources include solar, nuclear, and natural gas
El Paso Electric (EPE) is the sole provider of electricity for El Paso, Texas, and its energy sources include solar, nuclear, and natural gas.
EPE currently has 47 MWs of solar power in its generation mix and recently secured an additional 50 MWs of solar power, bringing the total to 110 MWs. In 2023, EPE started receiving power from a new 120-megawatt solar farm near Chaparral, and the company has plans to develop several other solar farms in New Mexico by 2025. However, EPE has stated that it can only add so many solar farms before their overall contribution to meeting peak power demand becomes too slim to justify further investment. To address this issue, EPE is developing large battery arrays to store solar energy for use during peak hours. Nevertheless, running gas-fired power plants remains more economical.
EPE's largest source of electricity is the Palo Verde nuclear power plant in Arizona, from which the company sources about 45% of its power supply. The plant is the largest power plant in the country and provides carbon-free energy to the region.
EPE also operates four natural gas-fired power plants, with natural gas making up approximately 38.6% of its generation portfolio. The company has shifted away from coal towards natural gas, which emits about half as much carbon dioxide. EPE is planning to add more natural gas power plants to its fleet as late as 2040, with the argument that gas turbines will be a more cost-effective way of meeting capacity needs.
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EPE has expanded its adoption of electric vehicles
El Paso, Texas, is not connected to the Texas power grid. Instead, it gets its power from other grid providers. El Paso Electric (EPE) is the sole provider of electricity for the region. It is a Texas-based public utility company that engages in the generation, transmission, and distribution of electricity in west Texas and southern New Mexico. EPE serves approximately 437,000 customers and distributes electricity to retail customers principally in El Paso, Texas, and Las Cruces, New Mexico.
EPE's commitment to expanding EV adoption is evident in its Plug-in Electric Vehicle and Charging Infrastructure Plan (PEVCIP) for the Rio Grande Valley region. As of 2013, EPE had 32 electric car charging stations in its service area, recharging Nissan Leafs, Chevrolet Volts, and other electric cars.
In addition to its EV initiatives, EPE has also invested in solar energy. In 2014, EPE signed an agreement to build a 10-megawatt solar energy facility in Northeast El Paso, which will help power over 3,800 homes. EPE has 47 megawatts of solar power in its generation mix and recently secured an additional 50 megawatts, bringing its total dedicated solar generation to 5%.
EPE's efforts to expand EV adoption and invest in renewable energy sources demonstrate its drive toward a greener and more sustainable future.
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EPE's transmission system voltages are 115,000 and 345,000 volts
El Paso Electric (EPE) is a Texas-based public utility company that provides electricity to El Paso, Texas, and Las Cruces, New Mexico. Notably, EPE is not connected to the Texas power grid. Instead, it is part of the Western grid.
EPE's transmission system voltages are 115,000 volts and 345,000 volts. These voltages are used for long-distance transmission, typically with overhead lines. In the United States, power transmission voltages vary between 230 kV and 500 kV, with 115 kV and 345 kV being exceptions.
The use of high-voltage power transmission allows for reduced resistive losses over long distances. This is because, at higher voltages, the fraction of energy lost to Joule heating decreases.
The voltages of 115 kV and 345 kV for transmission lines have historical and technical origins. In the early 1900s, limitations in insulators and switches made it challenging to surpass 60 kV. However, fluctuations in copper prices and advancements in electrical engineering led to the adoption of higher voltages.
Today, EPE serves approximately 400,000 to 437,000 customers, providing electricity through its generation, transmission, and distribution systems.
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Frequently asked questions
El Paso is on the Western grid, which includes Arizona and New Mexico.
El Paso Electric, the city's sole electricity provider, is not connected to the Texas power grid managed by the Electric Reliability Council of Texas (ERCOT). El Paso's proximity to New Mexico and Arizona makes it more economical to be part of the Western grid.
El Paso Electric was sold to the Infrastructure Investments Fund (IIF) in 2020.
El Paso Electric provides electricity to approximately 400,000-437,000 retail and wholesale customers.
El Paso Electric's energy sources include nuclear fuel, natural gas, purchased power, solar and wind turbines.
