Las Cruces to consider new franchise agreement with El Paso Electric

Organ Mountain News report

LAS CRUCES - The Las Cruces City Council discussed a proposed franchise agreement with El Paso Electric during a work session on Feb. 10, marking the first step in formalizing a contract that has been operating under an implied agreement since 2009.

The previous agreement, established by Ordinance 1790 in 2000, granted EPE a seven-year franchise with a two-year extension. When it expired in 2009, the city and EPE continued operating under its terms without a formal renewal.

The new agreement proposes an increase in the franchise fee from 2% to 3%. In fiscal year 2023, EPE collected and paid approximately $1.779 million in franchise fees to the city. The proposed increase is expected to generate an additional $889,000 annually.

The agreement also includes an automatic review every 10 years. Mayor Eric Enriquez suggested shortening that period to seven years, a recommendation that will be considered before the ordinance is introduced for a first reading before the City Council.

A first reading of the ordinance will take place at an upcoming regular council meeting, with potential adoption following a second reading.

The franchise agreement was the only item discussed during Monday’s work session. The meeting, along with all City Council regular meetings, is available for viewing on the City’s YouTube channel.

City offices will be closed Monday, Feb. 17, in observance of Presidents Day. The next regular City Council meeting is scheduled for Tuesday, Feb. 18, at 700 N. Main St.