CPS Energy is that much closer to another rate increase.
On a 5-0 vote Monday, the city-owned utility’s board of trustees approved a 4.25% increase over its base rates. That would raise the average customer’s monthly bill by an estimated $4.45, according to CPS officials.
The next stop for the proposed increase is San Antonio Council. Council, which is expected to debate the change this Thursday. If approved, the new rates would take effect Feb. 1.
CPS Energy officials maintain that the increase is necessary to pay for upgrades to outdated technology, keep pace with burgeoning growth and convert a coal-burning power plant to cleaner natural gas. The proposed change would bring in an additional $85 million in revenue.
Even so, critics say the increase is coming too soon and will strain the pocketbooks of low-income residents.
This is the second rate boost CPS Energy has sought in as many years. Council approved a 3.85% increase in March 2022 — the first for the utility in eight years. Officials have also said they expect to return to council to ask for another 5.5% rate increase within two years.
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This article appears in Nov 29 – Dec 12, 2023.
