CPS ENERGY STATEMENT REGARDING UTILITY INCENTIVES

CPS Energy is a business, owned by a community, that is appropriately active within the local, national and global energy landscapes. It has functioned prudently for 159 years, and has returned over $7 billion dollars to the community, significantly supporting city departments that include police officers and fire fighters. CPS Energy’s General Fund Transfer to the City of San Antonio also helps to further reduce property taxes that would have otherwise risen more if CPS Energy was not consistently transferring significant amounts of cash back to the community each year. CPS Energy provides the same utility energy services as Investor-Owned Utilities, while bringing great solutions to San Antonio that benefit our customers and community. CPS Energy’s incentive system has been in place for years, and has been designed to ensure CPS Energy is able to attract and retain highly capable team members for jobs that are very complex, and that are becoming increasingly more complicated day-after-day. This said, Mayor Nirenberg recently initiated an informal discussion with our President & CEO, Paula Gold-Williams about a compensation redesign. Ms. Gold-Williams is always open to new and creative ideas. Respectfully, and as a matter of process, Ms. Gold-Williams understands that the full Board needs to thoroughly discuss this topic further. After that, she stands ready to constructively discuss options for potential and equitable compensation system improvements.