Richard Dayoub, president of the Greater El Paso Chamber of Commerce, says the chamber is against the proposed franchise fee increase for Fiscal Year 2015 and any future fee increase.
Dayoub told ABC-7 it is "nothing more than a tax increase in disguise."
The chamber members also have a problem with a proposed Public Service Board fee increase, as does the PSB board itself.
Chamber members were polled and that business owners who completed the poll said "they were concerned their bills would go up significantly and they couldn't pass on the increase to customers," according to Dayoub.
While residential customer may see their electric bills go up by $9 per year, some commercial and industrial customers' bills would go up by a several thousand dollars, Dayoub said.
The president of the chamber of commerce said the City's proposal to increase the franchise fee is in direct contradiction with the message mayor Oscar Leeser has been sending, which is "El Paso, open for business."
Dayoub said such "hidden taxes" make it more difficult to recruit when a franchise fee -- designed to buy down electric rates as enticement for businesses to move into El Paso -- will be a detriment to the business being recruited.
"It is, in fact, a tax. It is not presented as a tax," Dayoub told ABC-7. "We believe elected officials should --right or wrong -- decide whether to increase taxes and be held accountable for it."
Dayoub said he will voice the business community's concerns during the City Council meeting at a.m. Tuesday.
City representatives are expected to approve the Fiscal Year 2015 budget during that meeting.
Earlier this month, City Rep. Cortney Niland advocated that the City charge a franchise fee to El Paso Water Utilities or El Paso Electric.
It would help raise $3.5 million for the City.
That would mean a $2 or more increase for customers per month.