Rep. Ann Morgan Lilly pitches city takeover of El Paso Electric Co.

Thursday, March 24, 2011 3:55 AM

(Source: El Paso Times)trackingBy Cindy Ramirez, El Paso Times, Texas

March 24--The city of El Paso should "seriously consider" taking over El Paso Electric, said city Rep. Ann Morgan Lilly, the incumbent for District 1 in the May 14 municipal elections.

In a meeting with the El Paso Times editorial board Wednesday, Lilly said she was dissatisfied with the utility's performance, calling it "out of touch" with the community it serves.

"It is a serious consideration. I haven't vetted it or brought it formally to council, but it is something we should be talking about," she said in a follow-up interview. "The control is in the hands of an out-of-town, out-of-touch board. I just don't think things should continue the way they have been."

In a prepared statement, the utility said it has served the community well for 110 years.

"Based upon performance statistics, EPE is one of the most reliable electric utilities in Texas. EPE is also one of the few publicly-owned corporations headquartered in El Paso and a leading contributor to the civic and business life of our community."

In reply to Lilly's suggestion, the utility said: "We would hope City Council members and those running for office would focus on building a business-friendly environment that would attract new companies to this region, creating private-sector jobs. Private-sector jobs are the key to encouraging young people to stay and build their lives in this community."

Lilly noted that she has long questioned El Paso Electric's performance and rates, but said the issue came to the forefront

after the February storm that led to rolling blackouts across the city.

The Federal Energy Regulatory Commission and the Public Utility Commission, which oversee the utility, are conducting independent investigations into the blackouts. The city has also pledged to convene special hearings to evaluate the performance of the electric company and other utilities during the storm.

City Rep. Beto O'Rourke, who is not seeking re-election, said the city's hearings won't take place until after the commissions issue their reports. The hearings, though, should happen before the next council takes office in June, he said.

O'Rourke said he understands why the idea of the city taking over the utility seems "attractive." However, he said, given the cost and procedures that would be required, "in practical terms, I don't know how we would ever do that."

The city last extended the company's operating franchise in 2003. It runs through July 2030.

"I think that train has left," O'Rourke said. "It would be unlikely an opportunity to seriously consider that would come about for many, many years."

Lilly said she would like to begin discussions with the council and the public that could lead to serious talks with the utility and its board.

"I understand it wouldn't be an easy or quick process, but I do think we should seriously discuss what benefits it would bring: the lower rates, the better service and the accountability," Lilly said.

Lilly faces six challengers for her council seat, which covers West El Paso.

Cindy Ramirez may be reached at cramirez@elpasotimes.com; 546-6151.

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To see more of the El Paso Times, or to subscribe to the newspaper, go to http://www.elpasotimes.com.

Copyright (c) 2011, El Paso Times, Texas

Distributed by McClatchy-Tribune Information Services.

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