Photo - Brax, Valley Publishing Joyce Wison & Gary Hedricks

Photo - Brax, Valley Publishing CEO, Gary Hedricks

In the last edition of The Upper Valley Beacon, June v.1, an editorial alerted readers that the EP Electric Company deal with the City of El Paso may have some dire consequences for the customers. There were several issues that seeme to be at odds with a "good" deal.

The fact that the City is taking a bigger cut opens the Administration to criticizm while rate payers keep paying an unusually high rate which is locked in for five years.

As an apparent reaction to the editorial as well as concerns expressed by readers to Joyce Wilson and Council; a public briefing was arranged. It was supposed to be a down to the bone Question and Answer session with concerned citizens and community watchdogs in attendance asking tough questions, but it turned out to be more of a story telling hour for the kids at the public library.

EP Electric Company CEO Gary Hedricks made a lengthy presentation of the most basic information and the public was presented an information packet provided by EPEC. The hour long time frame was cut by the meeting starting late but it was extended by Wilson so that at least one hour was available. This briefing needed to be at least two hours.

Hedricks took up over half of the time with attention to minutia.The problem continued. Hedricks would answer every question with background information and examples as if he were talking to a 3rd Grade class. For example "... the electrons go through the wire". In one response to a question asked by Lisa Turner, as to whether EPEC had entered into any negotiations for a merger, Hedricks spent nearly 5 minutes explaining why he could not comment publicly.

The real problem is that answers to real questions were not provided. Some of the more important questions that need answers according to readers and those in attendance at the presentation are:

Why are the rates in Austin and San Antonio lower than those in El Paso? Hedricks noted that these rates were not included in his rate comparison data sheet. Three other power companies have rates lower than EPEC... one is 6 cents a KWH as opposed to nearly 11 cents charged by EPEC.

Why isn’t the tax rate lowered for the next 5 years? If EPEC has lowered fixed costs by lowering customer service then a rate reduction and not a rate freeze are in order.

Why did the City place so much emphasis on the construction of local power generating facilities? EPEC can easily build elsewhere or not at all, and then the agreement is only voided. A new deal would have to be hammered out perhaps with the PUC involved. EPEC will not be penalized. Did Wilson and the City give up to much for this one item? There are no gaurantees that EPEC will even keep their headquarters in El Paso.

Why wasn’t an outside consultant called in to review the rate plan? Wilson says that they didn’t want to spend the money. Some estimates point to $200,000 to $500,000 cost but some say it could have been done for less. Yet the savings to consumers could have been in the millions of dollars according to Ray Gilbert who indicated that he had utility regulation experience.

Why does EPEC support more usage? Instead of conserving electricity EPEC supports rebates for those users who switch to refrigerated air which uses more electricity. Water is saved but many homes in the Upper Valley use less air-conditioning due to the cooler temperatures in the evening. Energy-efficient homes would save both water and electricity.

Are the civic contributions of EPEC as outlined in the proposed agreement really that much of a boom for our community? Or is it only window dressing that is thrown at EPEC big users and PR events used to make EPEC look like a nice company instead of that of a monopoly without any care or worry about competitive rates or any action unless they get caught at it.

Let's not forget that it was just a couple of years ago when EPE tried to ram the Santa Teresa-Montoya high-tension power lines down the throats of Upper Valley residents by moving the course of the lines a mile out of the way of a straight shot from point A to B. Residents fought that assault.

Readers have also complained that EPEC is not operating as a fair and professional company. In one case, a consumer after seeing high electric bills asked for a meter test. It was not done. Later the request was for a meter replacement. It again was not performed but the consumer was told that it was replaced. After being shown that the meter was still the old meter EPEC replaced it and the subsequent 50%-400% lower bills have not prompted EPEC to offer a refund.

Hedricks made it very clear that he was looking out for the stockholders and Wilson was supposed to look out for the City. But the question asked by some of those in attendance was “Who looks out for the ratepayers?”. Wilson is supposed to as the defacto guardian for the ratepayers.

It is clear that the deal is in the best interest of EPEC or they would not have agreed. The City of El Paso may have secured a similar sweet deal with extra revenue to throw in the kitty and some say will not affect taxes as Wilson claims. When asked if the two City Reps. of the Upper Valley, Lilly and Cobos, would initiate a public hearing, no affirmative response was received.

Residents have called for a Town Hall Meeting for the Upper Valley and Westside if not for the whole city. One could not be organized in such a short time before the July 5th vote. Residents have expressed the desire to their Representatives that a postponement is in order.

Many residents express frustration at the proposed agreement. They doubt that this proposed agreement is really in the best interest of the consumer. As Ray Gilbert has indicated, it seems that the City and EPEC will gang up on any one who tries to protest this agreement or send it to the PUC. The problem is that no one can prove the agreement is bad because that takes a lot of resources... but, no one can or has so far, proven that it is good.

Send feedback to:

Editor, Upper Valley Beacon

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