City to Consider New Franchise Agreement with El Paso Electric

Las Cruces City Councilors met Feb. 10, 2025, in a work session where they were introduced to a proposed new franchise agreement with the El Paso Electric Company.

In 2000, City Council adopted Ordinance 1790 that granted El Paso Electric a seven-year franchise agreement, with a two-year extension, with the City. That agreement expired in 2009, after which the parties continued to cooperate according to the terms of the franchise in an implied agreement to abide by those terms.

The proposed new contract is a typical pass-through franchise agreement that includes an increase from two percent to three percent.

In fiscal year 2023, El Paso Electric collected and paid approximately $1.779 million in franchise fees to the City. The one percent bump is projected to see the franchise fee increase by about $889,000 each year.

The proposed new franchise fee includes an automatic review of the agreement every 10 years. Mayor Eric Enriquez suggested both parties might be better suited if the automatic review is done every seven years. The suggested change will be considered by EPE and the City before the first read of the ordinance before Council.

The next step will include a first reading of the proposed ordinance at a regular meeting of City Council. The new agreement can be adopted during a second reading of the ordinance.

The EPE franchise agreement was the only item on Monday’s work session agenda.

Monday’s work session, and all City Council regular meetings, can be seen on the City’s YouTube channel.

Monday, Feb. 17, is President’s Day, a federal holiday observed by the City. Council will next meet in a regular meeting on Tuesday, Feb. 18, 2025, in Council Chambers, 700 N. Main St.