Sandy Jones
The Texas-based company contends the counties, like municipalities, have the authority to collect franchise fees – amounts paid by a franchisee as consideration for the right to use the public streets and highways of the local government granting the franchise fees. But commissioners ruled the fees were never approved.
“It is illegal for El Paso Electric to be passing these costs on to consumers,” PRC District 5 Commissioner Sandy Jones said during Tuesday’s hearing. “If it was up to me, I’d make El Paso Electric refund all of the fees collected since 1999.”
But customers may not see the money returned in a reduction of their bills right away, because the the company filed a notice of appeal with the New Mexico Supreme Court on Wednesday.
“We are working together with the counties to resolve this issue through the courts and the Legislature,” Teresa Souza , a El Paso Electric spokesperson, wrote in response to NMPolitics.net inquiry.
The PRC order was spearheaded by Jones, who represents both counties on the PRC. It demands that the company refund, over a three-year period, more than $5.3 million in fees to customers in Doña Ana County and more than $280,000 to customers in Otero County, plus interest.
Although the franchise fees have been collected since 1999, the refund period – June 1, 2004 through the present – reflects the time that the fees were charged as a separate line item on customer bills without PRC review or approval.
The refunds, if the PRC order is upheld, would be made through credits that will appear on customer utility bills. Consumers will also see a 2-percent reduction on their utility bills within the next few months.