Proposal would cut San Antonio’s share of CPS Energy revenue to improve reliability

In a bid to keep San Antonio’s lights on as the state’s power grid looks increasingly unreliable, Councilwoman Melissa Cabello Havrda this week filed a request to lower the amount of revenue the city takes monthly from CPS Energy.

The District 6 councilwoman’s proposal would allow the city-owned utility to keep 2-3% more of its monthly revenue and use that money to bolster its power supply and reliability. Currently, 14% of CPS’s monthly sales go directly into the City of San Antonio’s coffers.

Cabello Havrda’s request comes after the Electric Reliability Council of Texas (ERCOT) issued nearly a dozen calls this summer for voluntary conservation as power demand nearly outstripped supply. Last week, the organization went into emergency operations — a step away from triggering rolling blackouts to avoid major damage to the state’s grid.

“I’m 100% concerned that if we don’t make ourselves more self-reliant, we’re going to be in trouble in terms of our ability to meet electrical demand,” Cabello Havrda said. 

Climate change has made it more likely San Antonio will endure future weather disasters like this summer’s record heat and 2021’s Winter Storm Uri, which forced millions of Texans to endure blackouts, the councilwoman added.

Cabello Havrda requested council debate the proposal in October so it can be implemented before potentially severe winter weather again put the Texas grid at risk. She said she’s received signals her request has majority support on council.

The proposed five-year plan would force the city to give up at least $60 million in revenue during the next fiscal year. However, CPS would be required to spend the additional funds on diversifying energy sources, software upgrades and new infrastructure, all of which would boost the utility’s resilience, the councilwoman said. 

The proposal also would allow CPS to stave off a potential rate increase, according to Cabello Havrda. The utility raised rates in spring of 2022 and has said it would seek a further increase as early as next year.

“Avoiding a rate increase would be a happy side-effect, but the main concern is making San Antonio more self-reliant,” Cabello Havrda said.

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This article appears in Sep 6-19, 2023.