Texas PUC Fails Consumers, Approving Higher Utility Rates and Unnecessary Fees
PUCT Approves Utility’s Rate Hike and Punitive Fees for Families with Rooftop Solar
FOR IMMEDIATE RELEASE
February 23, 2026
El Paso, TX – The Public Utilities Commission of Texas (PUCT) voted on Friday, February 20, to approve a rate hike that will raise electricity bills for all El Paso Electric (EPE) customers and discriminate against those with rooftop solar. Despite advocates calling for a comprehensive cost-benefit analysis of rooftop solar before imposing the new fees, the PUCT ordered an additional new fee of $4.75 per kilowatt of energy usage for households with rooftop solar, which could add over $20 to bills, depending on energy demand in the home.
During the rate case, a coalition of solar and consumer advocacy organizations, including Solar United Neighbors, Public Citizen, Vote Solar, Amanecer People’s Project, Empowering Area Communities & Households, and the Texas Solar Energy Society, argued that EPE’s proposal to increase the monthly residential fixed charge harms customers who make efforts to conserve energy, including customers with solar, smaller households, and low-income families. Advocates presented evidence that EPE’s proposed solar fees are unfounded, showing that EPE failed to demonstrate that solar customers aren’t already paying their fair share and that the utility neglected to account for the benefits rooftop solar provides to the grid. In a draft of the decision, administrative law judges who reviewed the case largely agreed with advocates. Judges recommended rejecting EPE’s proposals to increase fixed charges for all residential customers by 50% and to implement a non-coincident peak demand charge that will raise rates for customers with rooftop solar. In a dramatic reversal of the judges’ recommendations, the PUCT largely approved EPE’s requested rate hike in an open meeting on February 20th.
“After several record-breaking hot summers, rising utility bills are putting further strain on household budgets,” said Kate Bowman, Vote Solar’s Senior Regulatory Director. “The high fixed charges approved by the PUCT will prevent families from meaningfully lowering their bills, no matter how hard they work to cut their energy use, whether by installing rooftop solar or by making their homes more efficient. We are disappointed that PUCT took the side of utility profits at the expense of families already facing affordability challenges.”
“Utilities exist to serve customers, not the other way around,” said Sam Silerio, Solar United Neighbors’ Texas Program Director. “We’re disappointed the PUCT does not see it this way too. Today’s ruling harms all El Pasoans, worsening our affordability crisis and limiting our ability to power our own homes. The sun shines for all of us, and families in the Sun City who take control and install their own solar panels should not be charged more when they contribute so much to our electric grid.”
“We are deeply disappointed that the PUCT approved El Paso Electric’s latest attempt to stifle the use of solar energy. Forcing customers with solar to pay additional fees that don’t apply to other residential customers discourages utilization of a plentiful local clean energy resource that can keep bills affordable, power local economic development and limit the need for polluting fossil fuels,” commented Kaiba White, from Public Citizen’s Texas office. “Allowing these anti-solar fees without any credible cost-benefit analysis to back them up is particularly insulting to customers.”
“Sound, favorable solar policies that will grow a diverse, equitable industry; build healthy, resilient communities; support local, well-paying jobs are important for any community. The economics and jobs that are created from rooftop solar are real and market signals from utilities are critical in keeping the market alive. The state continues to need every electron that is or could be available, and the PUCT missed the mark with this decision.” commented Pete Parsons, Executive Director of the Texas Solar Energy Society.
In addition to approving higher fixed fees, the PUCT rejected a rate moderation proposal that would have limited cost increases for residential customers. The full impact on customer bills will be determined in the coming days, once a written order is filed with the PUCT.
About Solar United Neighbors
Solar United Neighbors is a nonprofit organization that works in Texas and across the country to represent the needs and interests of solar owners and supporters. It’s building an energy system with rooftop solar at the cornerstone. Solar United Neighbors holds events and education programs to help people become informed solar consumers, maximize the value of their solar investment, and advocate for fair solar policies.
About Public Citizen
Public Citizen’s Texas office works to protect the health and prosperity of our communities and families. We support a just energy transition that creates green jobs, living wages and a strong economy. We advocate for strong and fair environmental and energy policies that benefit everyday people and future generations.
About Vote Solar
Vote Solar is an energy justice non-profit working towards a 100% clean energy future by bringing solar to the mainstream. Founded in 2002, Vote Solar advocates for clean energy in legislative and regulatory arenas at the state level, where most decisions about electricity are made. Despite powerful opposition, we use a winning combination of deep policy expertise, coalition building, and public engagement to get the job done.
About the Texas Solar Energy Society
For 50 years, TXSES has been the pre-eminent statewide organization developing free thought-leading, independent, fact-based educational materials that inspire innovation, share best practices and educate decision-makers on the critical importance of sound, favorable solar policies that will grow a diverse, equitable industry; build healthy, resilient communities; support local, well-paying jobs; and lay the foundation for a 100% clean energy future for Texas, one community at a time.