Proposed Charter Amendments

Financial Impact

What will the Charter Amendments cost the City?

If Proposition K, the citizen-led petition to add Climate Policy to the City Charter, passes there is an estimated total ANNUAL cost of $4,125,936 and an additional $154,995,000 through 2045. This estimate does not include:

  • Potential Inflation Costs (Estimated Cost: unknown)
  • Infrastructure Upgrades and Investments (Estimated Cost: unknown)
  • Other Green Conservation Measures that are not part of Prop K but may be considered such as water conservation, stormwater management, indoor air quality, and materials waste reduction (Estimated Cost: unknown)
  • Municipalization of El Paso Electric, i.e., the City purchasing El Paso Electric (Estimate Cost: unknown)

Below is the detailed estimated fiscal impact associated with climate policy implementation as described in Prop K is a breakdown of the policy outline in the following sections. All estimates included in this document are ONLY projections based on available data, current market costs, and conditions, and are subject to change.

If Proposition F, the Council approved Charter amendment to Article III, Section 3.11 (Initiative), there is a potential implementation cost. However, this would only occur if a citizen petition were filed and certified and Council fails to adopt the ordinance or adopts it with amendments. The City Council would then be required to place the proposed ordinance on one of the next two uniform elections at which time the election costs would vary; meaning, if the date falls on an already scheduled citywide election, the cost to add a proposed ordinance would not increase. However, if a special citywide election is called then the cost would depend on the number of other governmental entities that have the need for an election and can share the costs for that election at which time an increase to the City’s budget would be needed. The recent costs for a citywide election have varied between $650,000 and $1,000,000.

Below is a table outlining the breakdown of the estimated costs for the Proposition K:

Policy Sections Total Cost  Annual Cost
Climate Policy Sec. 9.1 $154,995,000.00 $4,125,936.00


Breakdown Sections Costs  Cost Recovery
Climate Director Sec. 9.3 $260,000.00  
Climate Department Personnel (excluding Director) Sec. 9.4 $1,268,361.00  
Climate Department Operations Sec. 9.4 $306,300.00  
Annual Climate Impact Rpt Sec. 9.5 $50,000.00  
Annual Emissions Rpt Sec. 9.6 $65,000.00  
Climate Jobs Sec. 9.7 $1,451,372.00  
Government Procurement Manager Sec. 9.7 $84,903.00  
Solar Power Generation Plan Sec. 9.8 $10,000.00  
Rooftop Solar Power Generation Policy Development and Maintenance Sec. 9.8 $10,000.00  
Investment Grade Audit (divided over 3 years) Sec. 9.9 $495,000.00  
Energy Efficiency and Electrification Sec. 9.9 $50,000,000.00  
Estimated cost to reach 80% renewable energy for municipally owned facilities by 2030 Sec. 9.9 $67,500,000.00  
Estimated cost to reach 100% renewable energy for municipally owned facilities by 2045 Sec. 9.9 $25,000,000.00
Municipalization of El Paso Electric feasibility study Sec. 9.10 $12,000,000.00  
Annual Climate Disaster Mitigation, Preparedness, and Response Sec. 9.11 $50,000.00  
Cost recovery due to the elimination of fees, permits, and fines associated with limiting the purchase, use, or generation of renewable energy. Sec. 9.13   $570,000.00

How much would it cost the City to purchase El Paso Electric?

IT IS UNKNOWN AT THIS TIME WHAT IT WOULD COST FOR THE MUNICIPALIZATION OF EL PASO ELECTRIC. If the voters approve adding the petitioner’s climate policy to the City’s Charter, the City may be required to conduct a feasibility study to determine the feasibility and an estimated cost for the municipalization.

The feasibility study is estimated to cost about $12 Million and is a multi-year study that averages between 8 to 10 years.

The utility was sold to IIF for $4.3 Billion in 2020.

EP Electric advised that they have added assets to the utility and estimate they have nearly doubled in value over the last 3 years. Additionally, EP Electric has advised us that they intend to invest another $2 Billion in infrastructure over the next 5 years.

At this time, the estimated value is about $8 Billion, according to EP Electric. The utility is not for sale at this time.

Read Yearout Energy’s budgetary estimates for Proposition K which includes the methodologies to the citizen-led petition.

Notice Requirement – Texas Local Government Code 9.004

"An argument might be made that the cost of acquiring the EPE system is $4.3 billion because that is what IIF paid in 2020.

Unfortunately, the acquisition price may not be a good proxy for acquiring and setting up a stand-alone city-owned utility.

A municipalization is a different legal and financial process, which will have to include a partial acquisition of EPE's service area as well as creating a whole new utility function."

H Bailey Group
March 2023