Pearsall councilors have authorized the city to join a consortium that is fighting a proposed rate increase by American Electric Power (AEP).
The council approved a resolution to join other Texas cities in hiring attorneys to intervene in a proposal before the Texas Utility Commission.
“AEP is looking to increase rates,” City Manager Federico Reyes said during a meeting on Wednesday, May 29. “The city has the responsibility to either agree or disagree. We have a firm and they are fighting the rate case for us. Our hope is they will agree to a negotiated rate.”
Records filed at City Hall show that councilors previously approved an independent firm, Lloyd Gosselink, Rochelle & Townsend, an Austin-based company, to represent the city.
According to Reyes, the electrical company is looking to add, at a minimum, $4.60 per utility bill for transmission and distribution service.
The increase is believed to have a direct correlation to fund capital improvement projects the electrical company is currently undergoing due to an increase in energy demands.
The resolution, 2024-05-04, states that the city of Pearsall finds that AEP’s requested increase to its electric transmission and distribution rates and charges within the city should be denied; and finding that the city’s reasonable rate case expenses shall be reimbursed by the company.
“This resolution simply denies AEP’s requested rate increase,” Bobby Maldondo, legal counsel for the city said. “So the lawyers can continue to represent the consortium and represent all the member cities before the Public Utility Commission to oppose rate increases and keep any potential increase to a minimum for all consumers.”
