CORPUS CHRISTI, Texas — AEP Texas asked the City of Corpus Christi to allow it to raise its transmission and distribution rates. The city said no.
Officials said AEP's request would add an estimated $4.59 to your electric bill each month.
City Manager Peter Zanoni said the city has a say in proposed rate hikes.
"[AEP] each year generally tries to increase their rates to recoup the costs for providing service, because their infrastructure is in the City’s right of way they actually pay a franchise fee to the City we have under state law, the right to protest the rates on behalf of the residents here in Corpus Christi," Zanoni said.
Council turned down the request by passing a resolution saying the rate proposal was not reasonable.
"Whatever we can do to hold the line I’m willing to do that and I’m glad the rest of the council feel that way," Councilmember Sylvia Campos said. "And yes, we know it’s an uphill battle, we know they’re going to still request additional money, but at the end of the day what we’re doing is standing up for the people."
Zanoni expects AEP Texas will get a rate hike approved but probably not at the requested rate.
"When both sides look at, 'How do you justify this rate increase?' if it seems like it’s going to be tough to justify, if AEP will have trouble justifying it, then they’ll settle outside of going to the PUC, where a third party kind of independently looks at what the rate increases are required," he said.
The city manager told 3NEWS that it could be months before this issue is settled.