SAN ANTONIO — CPS Energy is aiming to implement a "provisional rate increase" this fall for San Antonio customers.
The company will present its request at a board meeting at 1 p.m. Monday. According to the meeting's agenda, the rate increase "is only a placeholder" and is subject to board members and city council approval.
The proposal includes an estimated 4-4.5% increase to maintain operations and support growth and an estimated 1-2% to make up for unrecovered costs during the coronavirus pandemic. Also included is a proposed 1.5-3% increase to pay for costs incurred during February Storm Uri.
CPS Energy estimates the average impact for customers over the next year ranges between $9.70 and $14.60. While the pandemic-related increase is projected to last up to five years, the increase due to the winter storm could remain in effect for up to 25 years. CPS Energy says the length of the hike is to spread costs over time to minimize customers' bill impact.
The company says there was a need for a rate increase even before the impacts of February's winter storm.
In the immediate aftermath of the winter storm, CPS Energy CEO Paula Gold-Williams said the company will not shift costs to San Antonio customers “at this time” as leaders weigh options for bill relief. Natural gas prices skyrocketed during the winter weather crisis, forcing utility companies across the state to purchase natural gas at a nearly 16,000% markup.
“We will not be putting these extra costs on San Antonio customers’ bills at this time,” Gold-Williams said during a February press conference. "We’re holding those extra charges for fuel and incremental power we needed while we assess what are opportunities to lower the costs for all customers, particularly those most hit by the outages that had to be taken.”
Monday, Gold-Williams emphasized that the company is not "declaring a rate increase at this time, but we are talking about our budget" during Monday's meeting.
"We understand customers are very price sensitive. Every customer wants us to avoid asking for one more dollar than we need. Every year we work not to have an increase,” Gold-Williams said.
“I don’t think you can go to the grocery store and say everything you get in the basket is the same price it was seven years ago.”
According to CPS Energy, without an increase customers would see longer and more frequent outages; reduced ability to support growth in the San Antonio metro; and declining customer services. The company also says without a rate increase now, bigger bill increases could come in the future.
This would be the first increase since 2014, according to CPS Energy.