North San Antonio Edition | January 2024

From the cover

CPS Energy raising rates to address sustainability

BY EDMOND ORTIZ

Two-minute impact

Average yearly residential bill from 20132024 From 2013 to 2023, the yearly average residential bill has increased $23.37. CPS Energy ocials approved increases to the base rate in 2014, 2022 and 2024. Ocials say they anticipate another hike in 2027.

The rate hike, approved by CPS Energy board and City Council Dec. 4 and 7, respectively, will generate $85 million more yearly for the utility. CPS Energy ocials said the new revenue will go toward reinforcing the utility’s wires, poles and other infrastructure; overhauling its 20-year-old computer system; enhancing customer service; and preparing to replace workers eligible for retirement over the next ve years. District 10 Council Member Marc Whyte proposed a 2.125% rate hike and returning part of a $420 million-plus city budget surplus, including CPS Energy excess revenues, to the city-owned utility to stave o the 4.25% increase. Council rejected that proposal. “In the 2025 budget process, we need to cut spending on the city side and invest those savings into CPS,” Whyte said later.

2013 2014 2015 2016 2017 2018 2019 2020

$139.03

$152.56

Rate rose 4.25%

$147.80

$141.03 $140.94

$148.51

$138.05 $139.23

2021 2022 2023 2024 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Rate rose 3.85% Rate rose 4.25% $144.92 $181.40 $162.40 $168.89*

Average yearly residential bill

*PROJECTED

SOURCE: CPS ENERGYCOMMUNITY IMPACT

Dig deeper

What they’re saying

Spurred by council and community members’ concerns about aording the new rate hike, CPS Energy ocials said they will increase the Aord- ability Discount Program. Eligible residential customers can save as much as $2.22 monthly on electric and gas together with the program increases. The utility also plans to boost the num- ber of eligible customers the program can aid. Eligible customers seeking payment assistance may also nd help through the city’s and Bexar County’s Residential Energy Assistance Partnership on the city’s website at www.tinyurl.com/ys8hyz7f or the county’s website at www.tinyurl.com/mr378epj. Average residential bill impact Average CPS energy residential customers will see an estimated 2.8% bill increase, which includes increases in the base rate and the Aordable Discount Program.

"A 4.25% rate increase is immediately needed to ensure continued adequate, ecient and reliable

"None of us have a voice on the rate hikes. We are just forced to accept

the whims of the San Antonio City Council." CHRIS FAILS, FORMER HOLLYWOOD PARK MAYOR

energy delivery to every household and business in the CPS Energy system."

JOHN COURAGE, SAN ANTONIO DISTRICT 9 CITY COUNCIL MEMBER

Going forward

Annual projected capital improvement expenses

CPS Energy President and CEO Rudy Garza said the rate hike will also support implementation of the utility’s new power generation portfolio. Ocials plan to phase out coal use by 2028; close one coal plant; turn another into a natural gas facility; and add nearly 5,000 megawatts of power capacity over seven years—a blend of natural gas, solar, wind and lithium battery storage. In all, CPS Energy ocials plan to spend $6.2 billion over the next ve years to implement these and other improvements.

Combined electric and gas

Electric only

Gas only

Residential bill

Current bill Base increase

$164.44 $134.54 $29.90

$4.22

$3.46

$0.76

Aordable Discount Program increase Total bill increase

$0.23

$0.16

$0.07

2025 2026 2027 2028 2029

$4.45

$3.62

$0.83

SOURCE: CPS ENERGYCOMMUNITY IMPACT

NORTH SAN ANTONIO EDITION