Something to Brag About

From this . . .

To This

All of us get the El Paso Electric Newsletter with our monthly bill. This month EPE is touting their new community solar facility. I was impressed by these two sentences:

"After the first year of operation, generation from this 3,000 kW facility will prevent more than 11 million pounds of carbon dioxide emissions from entering our atmosphere. This is equal to saving almost five million gallons of water and planting more than one hundred twenty-eight thousand trees."

Without getting into the debate about rooftop versus community or the current rate case and the contention that EPE is hobbling their rooftop competition, the above facts are something to brag about.

I repeat what CEO Mary Kipp said in the newsletter:

"We're very excited to bring this new facility online and begin generating credits for our customers who wanted to invest in solar energy without any equipment or embedded subsidies . . . We have several utility scale solar facilities that are part of our generation mix, and this latest project allows us to keep supporting innovation in renewable energy, and make it more accessible to our customers through our Community Solar Program."

Some Facts and Thoughts about the EPEC Rate Case

Some facts and thoughts:

The El Paso rate case comes in around 8,000 pages. Guess EPEC started this as soon as they didn't get everything that they wanted a year ago.

El Paso electric rates are the most expensive in the state of Texas. (Thought you should know.)

Why do we have high rates since 50% of our electricity comes from the Palo Duro nuclear power plant? Nuclear power is the most inexpensive means to generate electricity - second only to hydroelectric.

The last rate case cost rate payers $3.5M. EPEC's attorney fees and the City of El Paso's attorney fees are paid for through your electric bill. This means that there is no disincentive for EPEC to file case after case. 

Although commendable, EPEC's new solar program is really an oversell. An electron is an electron is an electron. It doesn't matter where or how electricity is generated. Those electrons just flow down the same wires. If you signed up for their program, you are paying for their new solar power plant is all.

I do not begrudge anyone her/his salary. Ms. Kipp is compensated below what other CEOs make - sexism perhaps? Still she makes just less than $1M per year. EPEC Board members make about 9X what I do as a City Council rep. (I make $29,000/year) These people are smart, financially savvy people. The cream of the crop. But really?

Finally, all of this rate business is really evidence of the dying throes of the electric utility business. Once batteries are manufactured that are affordable and capable of holding the necessary charge, each unit (home, business, school, etc.) will put up the solar panels, attach the batteries and disconnect from the electric company's grid. 5 years to such battery technology?

Don't Miss This

Click on image to enlarge.

From Vic Kolenc's El Paso Times story, El Paso Electric celebrates coal-free status, last week: "By dumping coal, the company has eliminated 1 billion pounds of carbon dioxide emissions annually from its electric-generation portfolio, Kipp said. Carbon dioxide emissions have been linked to global warming."

In spite of recent battles with EPEC over their solar policy, environmentalists should celebrate and thank El Paso Electric for their divestment of coal as a source of energy. 

Here's a pic of the filthy Four Corners plant which had been supplying EPEC with their coal guzzling, carbon dioxide spewing generators:

From KOB4 News, New Mexico

Mary Kipp

From Kipp takes over as EP Electric CEO by Vic Kolenc, El Paso Times
Photo by Victor Calzada

Earlier this week I met with the CEO of El Paso Electric, Mary Kipp. The time with her was not just informative but delightful. She has a very spontaneous, often perverse (in a fun way) sense of humor. I told her why I thought that EPEC was wrong regarding their policy toward rooftop solar and she shared her perspective.

The exchange was something akin to a Biology 101 student (me) speaking with a neurosurgeon (her). What I really discovered was that I was discussing solar energy with a fellow environmentalist - not a clandestine agent for the nefarious oil tycoons. (I also learned that Tom Shockley was not the evil minion of the Koch boys. Sorry, Tom.)

From PSEG El Paso Electric Solar Farm Inauguration,
El Paso Inc.
Photo from photo collection by Melody Parra

To be sure, we do have some differences of opinion. To solve the problem of carbon emissions (and, therefore, climate change), Kipp sees flaws in the rooftop solar approach. I was impressed with her sincerity and didn't see her thoughts on rooftop as being excuses to crush the competitors. Saying that she is an advocate of solar energy is an understatement.

If there was a flaw in her argument, it may have been because she was talking about solar in the context of the continuing existence of electrical utilities. (If I'm wrong, she can correct me the next time that we speak.) I still maintain that electric utilities are dinosaurian and already selected for extinction. More localized systems (perhaps as local as a single residence itself), are the future IMHO.

She did recommend that I read Bill McKibben's book, eaarth. I promised her that I would order it rightaway which I did. Thanks to Amazon Prime, it was at my doorstep this morning.

There is no doubt that EPEC's becoming coal free is the work of Shockley and the CEO whom he mentored: Mary Kipp. EPEC will even celebrate becoming coal free in a public event on Wednesday, August 3rd at 9:30 AM in the San Jacinto Plaza. It's a must attend.

Click on image to enlarge.

During our meeting Ms. Kipp was pleasantly straight forward. However, I do think that she misinformed me about one thing. She claimed that on her last birthday that she is older than she really is. I'm pretty sure that her Board would still approve of a 30ish CEO and take her knowledge, experience and expertise and not her age as the reasons to have made her CEO of EPEC.

Ratepayers and Solar Users Get the Shaft

The El Paso Times reports that City Council today agreed to a $37 million electric rate-hike settlement with the El Paso Electric Company. Simply put, your rates are going up and, of course, EPEC CEO, Mary Kipp, is happy. There won't be a separate solar rate class but solar rate customers will now pay an $11/month fee. That's up from no rate fee before. Eco-El Paso board member, Shelby Ruff, wrote on Facebook: "$11/month for a solar customer means that their first kilowatt of solar is basically being stolen by the Utility for their own profits. Oh, they forgot to mention they already tax each solar panel during the permit process, so now it's a double tax! FAIL EL PASO!"

Only Rep. Svarzbein voted against the agreement.

Bottom line: we, the ratepayers, are now feeding a business dinosaur more; and, henceforth, we should buy as few electrons as we can from EPEC. 

Senator Rodriguez issued the following statement about the City Council vote to authorize its legal counsel to settle the EPEC rate case according to terms outlined by counsel:

I commend the City of El Paso for diligently advancing settlement terms in El Paso Electric's current rate case that are advantageous to all ratepayers. 

Unfortunately, I still have concerns about proposals to increase fees on residential customers who chose to install solar panels on their homes.  I acknowledge that eliminating El Paso Electric's original proposal to move solar customers into a new rate category is a positive step.  For reasons I articulated to Council* and the Public Utility Commission of Texas,** I believe that proposal would have systematically overcharged solar customers. 

Nevertheless, I fear the remaining settlement terms may still disincentivize solar growth in El Paso.  As I understood those terms, solar customers would pay an additional $11 charge on their electric bill that can decline based on how much electricity the customer buys from El Paso Electric.  It is my understanding that most solar customers' average monthly savings is less than $10 a month, so I am concerned this new charge will still eliminate customers' financial incentive to use solar. 

Moreover, I understood the proposed settlement terms would only grandfather in customers who installed solar previous to El Paso Electric's rate case filing in August.  The number of new solar customers has nearly doubled since then.  These new customers may have invested substantial money installing solar, expecting to recoup that investment in monthly energy savings.  Now, their financial calculation is no longer valid.  This is unfair.  A better result would be to at least extend grandfathering provisions to the date when the PUC finally approves El Paso Electric's new rate regime. 

I understand that not all of the solar interveners in the rate case agree with this proposed settlement.  I look forward to seeing how the PUC will ultimately decide these remaining issues.  I would again urge the PUC to seriously consider the positive contributions residential solar brings to El Paso.


* Letter to City Council, November 18, 2015, http://interchange.puc.state.tx.us/WebApp/Interchange/Documents/44941_303_873542.PDF

** Letter to PUC, January 22, 2016, http://interchange.puc.state.tx.us/WebApp/Interchange/Documents/44941_629_879918.PDF

Here is Attorney Norman Gordon's presentation to City Council:

Elpaso #1240252-v1-city council-presentation_2-29-16 from elpasonaturally

Intervenor, Eco-El Paso, has not responded to an elpasonaturally inquiry whether they will agree to the settlement or continue pursuing the case with the PUC.