CPS ENERGY BOARD OF TRUSTEES APPROVES RATE REQUEST
Recommended increase will be presented to City Council on December 7
December 4, 2023 (SAN ANTONIO) – This afternoon CPS Energy’s Board of Trustees voted to approve the utility’s request for a 4.25% rate increase. The rate increase will address CPS Energy’s infrastructure resiliency, growth, technology and security needs and workforce planning. This is part of a multi-year strategy of incremental rate increases necessary to maintain and improve the utility for the community now and in the future. CPS Energy will present to the San Antonio City Council on Thursday, December 7, 2023. If approved, the rate increase would go into effect February 1, 2024.
“This rate increase will help CPS Energy implement our Vision 2027 strategy to meet our customer needs and lead this utility into the future,” said Rudy D. Garza, President & CEO of CPS Energy. “I would like to thank Board Chair Gonzalez for her leadership and navigating this discussion and also thank our Board of Trustees for their support throughout this process.”
“As Board Chairman, I stand by our decision to approve this rate increase, essential for the realization of Vision 2027,” said Janie Gonzalez, Chair of the CPS Energy Board of Trustees. “The Board’s support reflects our unwavering commitment to our community’s input, energy future and CPS Energy’s role as a leader in innovative utility services. I echo our CEO’s appreciation for the collaborative effort that brought us to this pivotal decision.”
The rate increase would result in an average $4.45 increase monthly for a residential customer electric and gas bill. Small commercial customers would see an increase of $17.80 for their average electric bill, or an increase of $24.40 for those with combined gas and electric service. A bill calculator is available for residential and small commercial customers to see the potential impact on bills based on their normal energy usage.
The Board of Trustees also voted to approve a regulatory asset as part of the same request that will go to the City Council for a vote. This will update accounting procedures and have no impact on customer bills.
The rate increase will address the following:
Infrastructure Resiliency – Aging infrastructure needs to be upgraded to limit the likelihood and impact of outages. Inflation is also increasing the cost of existing materials such as poles, power lines and transformers.
Growth –San Antonio and the surrounding area is expected to increase its population by 30% by 2030. With growth comes additional load demand and investment to sustain system reliability.
Technology & Security – CPS Energy’s core technology systems are 20 years old and must be replaced. Similarly, there is a need to continue to invest and maintain the physical and cyber security systems.
People – Over the next five years, 30% of CPS Energy team members will be eligible for retirement. Thirty percent of the remaining workforce has less than two years in their role, so CPS Energy will need to invest in workforce planning.
The rate increase will include affordability assistance that will partially offset the bill impacts of the rate increase for customers who qualify for CPS Energy’s Affordability Discount Program (ADP). The new monthly discount will increase to $18.36 (previously $16.14).
CPS Energy is committed to connecting customers to resources that fit their needs. For payment options and customer assistance programs, customers can visit the CPS Energy website or call (210) 353-2222 to speak with an Energy Advisor. CPS Energy has participated in various community events to provide information about the rate request as well as options for bill assistance. A full list of the events CPS Energy has participated in, as well as a list of upcoming community events can be found here.
For more information about the rate request, visit CPS Energy’s website. Information is available in English and Spanish. Information on CPS Energy’s Board of Trustees meetings, including recordings of previous meetings can be found here.
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About CPS Energy
Established in 1860, CPS Energy is the nation’s largest public power, natural gas, and electric company, providing safe, reliable, and competitively priced service to more than 930,114 electric and 381,379 natural gas customers in San Antonio and portions of seven adjoining counties. Our customers’ combined energy bills rank among the lowest of the nation’s 20 largest cities – while generating $9 billion in revenue for the City of San Antonio for 80 years. As a trusted and strong community partner, we continuously focus on job creation, economic development, and educational investment. We are powered by our skilled workforce, whose commitment to the community is demonstrated through our employees’ volunteerism in giving back to our city and programs aimed at bringing value to our customers. CPS Energy is among the top public power wind energy buyers in the nation and number one in Texas for solar generation.
