CPS Energy bills to increase in San Antonio after City Council approves rate hike
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Energy bills will increase in the new year after the San Antonio City Council approved the second rate hike for CPS Energy in two years.
Why it matters: Utility officials have said the additional income will allow them to meet community expectations around reduced carbon emissions, reliability amid extreme weather and more.
- But those who opposed the rate increase said CPS should first hire a consumer advocate and restructure its rates to ensure businesses that use the most power pay more, a long-time request from environmental and progressive activists.
The latest: The council's most progressive and conservative members — District 2 Councilmember Jalen McKee-Rodriguez, District 5 Councilmember Teri Castillo and District 10 Councilmember Marc Whyte — came together in opposing the rate hike in the final 8-3 vote Thursday, citing the burden on residents.
- Whyte had proposed an amendment to cut the rate increase in half and fund the rest of what CPS needs through the city's annual budget. A vote on that amendment failed narrowly, 6-5.
Details: The city-owned utility will raise rates by 4.25% effective in February. Officials say they will use the extra $85 million in annual revenue to replace aging technology and meet the power needs of a quickly growing city, among other upgrades.
- Of the $85 million, CPS would spend $26 million on reliability and resiliency efforts, $25 million on technology and security, $13 million on growth and $21 million on people.
By the numbers: The average residential bill will rise by about $4.45 per month, or $53 per year, according to CPS.
- Residents who participate in CPS' Affordability Discount Program for low-income customers will see an increase of about $2.42 per month, or about $29 per year.
What they're saying: "I have no doubt that this proposed rate increase will damage the financial wellness of families, businesses and individuals all over the city," Debra Ponce, an organizer with consumer and advocacy group Public Citizen, told the council.
- "We oppose the rate increase, and not because they don't need the money, but because they haven't met previous promises," Terry Burns, former chair of the Alamo Group of the Sierra Club, said.
The other side: "This is a relatively small rate increase," Mayor Ron Nirenberg said. "It's time to invest in our utility so it can be modernized, better equipped and better prepared to meet the demands and needs of our residents."
- "You're either moving forward or you're falling behind," CPS CEO Rudy Garza told council members.
Be smart: Rate increases are one of the few ways in which the City Council exercises direct control over CPS.
- The city owns CPS, but the utility operates independently with its own Board of Trustees, which includes the mayor.
Flashback: In January 2022, the City Council approved a 3.85% rate increase for CPS, then the utility's first rate hike in eight years.
What's next: CPS will seek another rate increase, up to 5.5%, in two years.