SAN ANTONIO, Texas — The average power bill, which is about $150, will increase by $5.10 a month or about $61 a year in total if the rate increase is successful.
CPS Energy presented its rate increase plan to city council for the first time today. The increase will come in two ways. First, the base rate will increase 3.85%. That means an extra $3.84 a month added to your bill. That will provide the utility with $72.3 million. There will also be a fuel increase of .8% to reimburse CPS Energy for fuel costs already paid for the February winter storm, which is $418 million dollars. That charge will be an extra $1.26 a month and last 25 years. CPS Energy is still disputing $600 million in winter storm fuel costs. The contested cost is not included in the rate hike. CPS Energy would need to ask for another increase should it have to pay any of contested costs.
CPS Energy initially looked at 10% rate hike. The increase is significantly lower, but before you breathe a sigh of relief, CPS Energy is likely to ask for smaller rate hikes every two years in the future.
This rate increase will address the utility’s immediate financial needs. Those include $31 million for weatherizing infrastructure, $15 million for technology, $14 million for growth including providing service to new residential and commercial areas and $13 million for employees.
“Really this is a pared down version of where we started. It really is the investments we have to make in weatherizing, our infrastructure, resiliency,” said Rudy Garza, the CPS Energy interim CEO. “We’re investing a lot of money in our power generation units to make sure they are capable and ready to run during the coldest time of the year.”
CPS Energy is also expanding its affordability program to help more customers afford the increase. It will add 14,000 more people to the program and increase the monthly discount by $3.84.
The rate increase needs to be approved by both city council and the CPS Energy board. If that happens, look for your bills to go up on March 1, 2022.