Divided San Antonio council approves CPS Energy rate increase

A divided San Antonio City Council voted 8-3 Thursday to authorize a 4.25% rate increase that CPS Energy officials said is necessary to help replace aging equipment, keep up with rapid customer growth and transition to cleaner energy.

However, that approval only came after a 5-6 defeat of an amendment that would have shrunk the size of the proposed hike by half. It also followed concerns raised by multiple council members that the city-owned utility hasn’t done enough to shield financially vulnerable residents from rate increases, however necessary they might be.

Mayor Ron Nirenberg, who sits on CPS Energy’s board in his official capacity, was vocal in his support of the increase, which will mean customers pay an average of $4.45 more monthly. He was among the five utility trustees who approved the increase earlier this week.

“The answer to the challenges that we’re facing is not to continue the same patterns,” Nirenberg said ahead of the vote on the amendment to shrink the increase. “So, I will not support the amendment and will support the CPS rate request, because I think it’s appropriate, it’s measured and it’s conscious of all the challenges we’re facing in the community.”

CPS Energy’s request came less than a year after an earlier rate hike approved by council. However, Nirenberg said the previous increase followed an eight-year stretch during which the utility never sought an increase. Even after the new charge goes into effect March 1, the utility’s rates will still be among the lowest in the state, he added.

In the end, council’s most conservative member, District 10’s Marc Whyte, joined with its District 2’s Jalen McKee-Rodriguez and District 5’s Teri Castillo — the core of its progressive wing — to vote against CPS Energy’s request. All three also supported the failed amendment.

“If have to choose, I have committed myself to my residents, and nothing weighs more heavily on my mind and heart than those who will be hurt by this decision,” McKee-Rodriguez said of his vote to cut the size of CPS Energy’s increase.

During the public comment period, consumer advocates bashed the utility’s rate structure, which gives rate breaks to big users while expecting low-income residents to suffer more from raised rates. A representative from Southwest Worker’s union read comments from residents worried whether they’ll be able to keep their lights on if their bills go up.

Debra Ponce, an organizer for the Texas office of Public Citizen, warned that CPS officials presented council with a list of finite expenses but asked for an increase that will continue to burden ratepayers for generations.

“We all want CPS Energy to get their computers replaced,” Ponce said. “No one wants CPS employees dealing with 2002 Windows computers, but let’s be clear about this situation: computer replacements are one-time expenses, and this rate increase is indefinite. We will pay for this increase, our kids will pay for this increase and their kids will pay for this increase.”

Several council members who ultimately voted for the increase asked for assurances CPS officials will work with city staff to find ways to ensure more low-income residents can access its discount program. At present, just 65,000 customers of the 140,000 who could qualify for the program are enrolled, utility CEO Rudy Garza told council.

In the end, Garza committed to working with staff to find ways to make the program accessible to a larger number of customers. He also said the utility will strive to make sure more are aware the discounts exist.

District 4 Councilwoman Adriana Rocha Garcia said expects CPS Energy to make the program more visible on its website, where she said she had difficulty finding information on it.

“If this rate increase were to pass today, I want something big and flashy that says, ‘If you need help paying your bill, please click here’ to make it easy,” she said.

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This article appears in Nov 29 – Dec 12, 2023.