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El Paso Electric files settlement agreement in Texas rate case

on July 21filed an unopposed settlementagreement with the Public Utility Commission of Texas that willprovide an annual nonfuel base rate increase of $37 million.

Theagreement also provides for annual depreciation expense of about $8.5 million,an ROE of 9.7% for allowance for funds used during construction purposes and anadditional annual nonfuel base rate increase of $3.7 million related toFour Cornersgenerating station costs.

In August2015, El Paso Electric originally requested nonfuel base revenues ofabout $71.5 million, which was modified to a requested increaseof $63.3 million in January 2016.

On March29, a nonunanimous stipulation and agreement and motion was filed withregulators to approve interim rates. Four parties to the rate case opposed thesettlement. Interim rates were approved by the PUCT effective April 1 subjectto refund or surcharge.