Form 8-K EL PASO ELECTRIC CO /TX/ For: Aug 18
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E-mailUNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
August 18, 2016
El Paso Electric Company
(Exact name of registrant as specified in its charter)
Texas | 001-14206 | 74-0607870 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
Stanton Tower, 100 North Stanton, El Paso, Texas | 79901 | |
(Address of principal executive offices) | (Zip Code) | |
(915) 543-5711
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 8.01 Other Events.
On August 18, 2016, the Public Utility Commission of Texas (the “Commission”) approved a Final Order (the “Order”), as proposed, approving the uncontested settlement agreement that was filed with the Commission on July 21, 2016 in El Paso Electric Company’s (the “Company”) rate case pending before the Commission. Now that the Order has been approved, the Company will record the impacts of the Order for financial reporting purposes in the third quarter of 2016.
A copy of the Press Release issued by the Company on August 18, 2016 is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference. The Order is expected to be signed soon and will be filed on the Commission’s website under docket number 44941. Documents appearing on the Commission’s website are not incorporated by reference into this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. | Description |
99.1 | Press Release issued by the Company dated August 18, 2016 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
EL PASO ELECTRIC COMPANY | ||
By: | /s/ Nathan T. Hirschi | |
Name: | Nathan T. Hirschi | |
Title: | Senior Vice President - Chief Financial Officer | |
Dated: August 18, 2016
Exhibit No. | EXHIBIT INDEX Description |
99.1 | Press Release issued by the Company dated August 18, 2016 |
 | |||
www.epelectric.com | News Release | ||
News Release | ||
August 18, 2016 | ||
Public Utility Commission of Texas Approves Final Order in Texas Rate Case Docket No. 44941
El Paso, Texas - The Public Utility Commission of Texas (the “Commission”) approved a Final Order (the “Order”) today in El Paso Electric Company’s (the “Company” or “EPE”) rate case. The Order resolves all issues in this rate case.
“While we are pleased that we have come to a resolution in our rate case, we understand the current economic impacts affecting our growing community,” said Mary Kipp, El Paso Electric CEO. “As a member of this community for 115 years, we have been dedicated to the long-term success and well-being of our region. As we continue to see solid customer growth, we remain committed to making prudent investments to meet increasing demand. By using cost-effective technologies and making environmentally-conscious decisions, we are making our power grid more dependable, safer and cleaner for future generations.”
The Order provides for the following: (i) an annual non-fuel base rate increase of $37 million, lower annual depreciation expense of approximately $8.5 million, a return on equity of 9.7% for AFUDC purposes, and including substantially all new plant in service in rate base, all as specified in the uncontested Stipulation and Agreement filed with the Commission on July 15, 2016; (ii) an additional annual non-fuel base rate increase of $3.7 million related to Four Corners Generating Station costs, which will be collected through a surcharge terminating on July 12, 2017; (iii) removing the separate treatment for residential customers with solar systems; (iv) allowing the Company to recover $3.1 million in rate case expenses through a separate surcharge; and (v) allowing the Company to recover revenues associated with the relation back of rates to consumption on and after January 12, 2016 through a separate surcharge.
Interim rates, associated with the annual non-fuel base rate increase of $37 million, became effective on April 1, 2016. The additional surcharges associated with the incremental Four Corners Generating Station costs, rate case expenses and the relation back of rates back to consumption on and after January 12, 2016 are anticipated to begin as early as October 1, 2016.
As the Company continues to meet the needs of its growing service territory with two new generating units at the Montana Power Station coming online in 2016, EPE anticipates filing new rate cases in Texas and New Mexico in early 2017.
El Paso Electric is a regional electric utility providing generation, transmission and distribution service to approximately 400,000 retail and wholesale customers in a 10,000 square mile area of the Rio Grande valley in west Texas and southern New Mexico. El Paso Electric has a net dependable generating capability of 1,990 MW.
Safe Harbor
This news release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. This information often involves risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Factors that could cause or contribute to such
differences include, but are not limited to: (i) increased prices for fuel and purchased power and the possibility that regulators may not permit EPE to pass through all such increased costs to customers or to recover previously incurred fuel costs in rates; (ii) full and timely recovery of capital investments and operating costs through rates in Texas and New Mexico; and (iii) other factors detailed by EPE in its public filings with the Securities and Exchange Commission. EPE's filings are available from the Securities and Exchange Commission or may be obtained through EPE's website, http://www.epelectric.com. Although El Paso Electric believes that the expectations reflected in such forward-looking statements are reasonable, no assurances can be given that these expectations will prove to be correct. Any such forward-looking statement is qualified by reference to these risks and factors. EPE cautions that these risks and factors are not exclusive. EPE does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of EPE except as required by law.
Public Relations Eddie Gutierrez | 915.543.5763 | Investor Relations Lisa Budtke | 915.543.5947 Richard Gonzalez | 915.543.2236 |
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