SAN ANTONIO CITY COUNCIL APPROVES CPS ENERGY’S RATE REQUEST
December 7, 2023 (SAN ANTONIO) – Today, the San Antonio City Council voted to approve CPS Energy’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. The City Council vote follows approval by the CPS Energy Board of Trustees on December 4, 2023. The request is part of a multi-year financial strategy of incremental rate increases necessary to maintain and improve the utility for the community now and in the future. The rate increase will go into effect February 1, 2024.
“We thank the San Antonio City Council for their commitment to make continued and necessary investments to protect our community’s electric and gas services,” said Rudy D. Garza, President & CEO of CPS Energy. “We also thank our community for their input throughout this process and we are committed to continuing two-way dialogue with them as we make more decisions for the future of our community asset.”
“Rate increases are never easy, but City Council stepped up to the plate to ensure that CPS Energy is adequately funded to retain its resilience, bolster its sustainability, and provide first-class service to its customers,” said Mayor Ron Nirenberg.
“I am grateful to the San Antonio City Council for their action and thoughtful dialogue in the rate adjustment journey,” stated Janie Gonzalez, Chair of the CPS Energy Board of Trustees. “Their decision plays a vital role in advancing our utility’s progress toward a future of greater resilience and reliability in energy services for our community.”
The rate increase will 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 impact on bills based on their normal energy usage.
The San Antonio City Council also voted to approve a regulatory asset that will update accounting procedures and will 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, and 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. Spanish speaking Energy Advisors are available to speak to customers, as well. 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. The next quarterly Public Input Session will take place Monday, December 18 from 5:30- 6:30 p.m. and will provide the community and stakeholders an opportunity to engage with the Board of Trustees on a variety of topics related to CPS Energy.
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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.
