San Antonio City Council approves CPS Energy rate hike

SAN ANTONIOReplace (1:35 p.m., Thursday, Jan 13, 2022): The San Antonio City Council accredited a CPS Energy rate hike, 7-3, on Thursday morning.

Councilmembers Teri Castillo, Clayton Perry and Jalen McKee-Rodriguez voted in opposition to the rise.

The brand new hike — a 3.85 p.c rate enhance — takes impression on March 1.

Authentic (3:29 p.m., Wednesday, Jan 12, 2022): The San Antonio City Council will vote on a CPS Energy rate hike proposal this Thursday after the CPS Energy Board of Trustees unanimously accredited the three.85 p.c rate enhance earlier this week.

The board moreover accredited a regulatory asset, which the utility says will recuperate $418 million in gasoline costs from closing February’s winter storm.


The rate hike has been anticipated for quite a lot of months, and whereas it’s lower than the double-digit proportion enhance the utility initially wanted, many purchasers nonetheless have questions. Listed here are quite a lot of the options:

The proposed rate hike is comprised of two parts: a 3.85 p.c enhance to the underside rate and establishing what the utility calls a “regulatory asset,” which could current up as an increase to your gasoline adjustment value.

How onerous these two parts would hit you depends on how loads vitality and gasoline you use. CPS Energy estimates the everyday electrical and gasoline purchaser would see a $5.10 enhance to their month-to-month bill, a 3.3 p.c affect.

Those that use 2,000 kWh of vitality and 50 CCF of pure gasoline each month, though, may even see a $9.35 bump every month — about 3.5 p.c higher than their current funds.


CPS Energy’s rate hike proposal comprises every a 3.85% enhance throughout the base rate and a bump in your gasoline adjustment value, which is meant to cowl the costs from the February Freeze. (CPS Energy)
Whereas the everyday home-owner will see a 3.3 p.c affect to their bill, CPS says that may differ based mostly totally on utilization. (CPS Energy)

As part of its rate requests, CPS Energy moreover proposes to develop its affordability program by one different 14,000 prospects — as a lot as 65,000 prospects entire — and enhance the low value prospects receive enough to offset, on widespread, the underside rate portion of the tax hike.

Officers say the rate hike proposal is about defending quick financial pressures.

The enhance to the underside rate is anticipated to generate about $73 million further annually for the utility, which it says may very well be used for making infrastructure further resilient to extreme local weather, planning for further regulatory requirements, planning for altering their earlier pc packages, and staffing.

In the meantime, the bump throughout the gasoline adjustment value would cowl — over 25 years — the $418 million the utility has already paid out for gasoline and related costs incurred all through the winter freeze.

CPS continues to be combating one different $587 million worth of costs from the freeze, which aren’t included throughout the calculations for the rate adjustment.


The rate hike doesn’t consider the entire cash prospects nonetheless owe from the pandemic each, because it’s able to see what variety of prospects start paying up as quickly as they’re confronted with disconnections.

The enhance doesn’t embody any modifications to the rate construction or worth assumptions for any strategic picks on generations, each, resembling shutting down or altering its coal-power Spruce plant.

CPS Energy had initially proposed a loads larger hike, about 11.1 p.c basic, along with a 13.4 p.c hike to the underside rate.

Many further points had been bundled into the distinctive draft, along with recuperating the “dangerous debt” from then-unpaid purchaser funds and further of the gasoline costs from the February freeze. It moreover took into consideration picks on what to do with the Spruce 2 coal vitality plant and totally different vitality period factors.

City employees acquired that draft proposal in September nevertheless steered the utility take a particular route, specializing in a pared-down request that solely focuses on acknowledged costs. City employees say they labored “collaboratively” with the utility to develop the model new proposal that’s now up for approval.


If accredited by the San Antonio City Council on Thursday, the model new expenses would take impression March 1, 2022.

It has been eight years since CPS prospects had a rate hike, nevertheless utility officers have made it clear they don’t intend to attend that prolonged as soon as extra.

The metropolis council accredited a 4.25 p.c bump to {the electrical} and gasoline base expenses in November 2013, which took impression February 2014.

If the council approves this enhance, utility officers have talked about they plan to do new rate evaluations every two years.

A CPS presentation to council confirmed 5.5 p.c base rate will improve in FY 2025 and FY 2027, though officers talked about these are merely “placeholders” and folks numbers is perhaps refined as these situations get nearer.

Officers say the Rate Advisory Committee, which consists of council and CPS board appointees, moreover need time to consider presumably restructuring the fees for the best way prospects are billed, along with strategic picks on how the utility generates vitality.



In its efforts to justify the proposed rate enhance to prospects, CPS Energy has invited prospects to go to its Proposed Rate Case website or title 210-353-2222.

The website lays out the utility’s reasoning for the rate hike and has upcoming events, along with a Dec. 13 board assembly and Dec. 14 tele-town hall, which have alternate options for public enter.


CPS Energy’s Board of Trustees approves 3.85% rate enhance

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