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CPS Energy proposing rate hike for customers adding at least $10 per monthly bill

CPS Energy leaders are proposing its first rate hike since 2014 to address several issues.

SAN ANTONIO — CPS Energy bills could possibly be going up in the winter.

Leaders at San Antonio's power company are debating how much rates could increase with one proposal estimating an extra $10 to $15 per monthly bill.

One local group that has been assisting people behind on their utility bills says it is opposing a rate increase.

Anacua Orellana Garcia is a community organizer with Southwest Workers Union. She says their organization has done rounds of $250 payments to 200 customers.

"One of the most disheartening and heartbreaking things that we learned was the amount we were giving for some customers was nowhere near enough. We have some of our community members that are thousands of dollars in debt with SAWS and CPS [Energy]," Orellana Garcia says.

"We are definitely organizing with city council to intervene and not approve a rate increase unless its fair,” Orellana Garcia tells KENS 5.

CPS Energy board members discussed the proposed rate request on Monday. The estimated $10 to $15 a month would be the utility's first rate increase since 2014.

"We know this is a difficult conversation to bring forth any rate request," Cory Kuchinsky, CFO for CPS Energy says the rate increase could address several issues.

The utility says it wants to keep up with growing demand while addressing aging infrastructure. A presentation to the CPS Energy board shows that achieving financial stability will be required while trying to address the $1 billion in winter storm fuel costs, along with the $110 million in bills past due as a result of the pandemic.

"It's been almost eight years since we've had our last rate request and there's been a lot of changes in the community that we've had to keep up with," Kuchinsky said.

"We've seen almost a 15 percent increase in our total customer base, electric and gas customers since 2014 which is pretty strong. That's necessitated a lot of investment in infrastructure...and we also spoke a lot about how the cost of investing and keeping up with maintenance has been going up exponentially," he added.

CPS Energy says it has had over a decade of cost savings totaling $906 million.

The rate request will be finalized first before being presented to the San Antonio City Council.

CPS Energy estimates it could take effect in December 2021.

The utility is hosting assistance fairs in communities like the south side to help customers avoid disconnections.

Orellana Garcia says her group is working to help people keep their lights on.

“We want fair rate structures, we want to end the legacy of disconnections for public utilities. Especially amid a pandemic, it’s inhumane and a human rights violation," she said.

Anyone in need of utility assistance can check out CPS Energy's website.

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