City Council approves CPS Energy rate increase | #citycouncil

CPS Energy customers will see an increase on their electric bills in February after San Antonio City Council approved a rate hike Thursday morning. The City Council approved a 4.25% increase to electric and gas rates for residential and commercial customers with the expectations of seeing an annual revenue increase to $89 million. 

The rate increase was approved 8-3 with council members Jalen McKee-Rodriguez, Marc Whyte, and Teri Castillo voting against the motion, representing districts 2, 10, and 5, respectively.

Residential customers would see combined change in electric and gas bills of $4.45 per month — $3.62 for electric and 83 cents for gas — or $53.40 per year, according to CPS Energy estimates based on an average of 1,100 kilowatts per hour. CPS Energy serves 827,338 residential customers, which is 90% of the utility’s customer base. Small commercial customers with an average bill will see an increase of $17.80 and $24.40 on their electric and gas services, respectively.

The rate increase aims to help fund better CPS Energy infrastructure, growth, technology needs, and workforce planning. CPS Energy plans on proposing another rate increase in two years. The annual increased revenue of $89 million will go to funding fire department and police department needs in the ongoing budget and the 2025 budget. 

Most residents and customers that spoke during the public comments portion railed against CPS Energy’s proposed rate increase, saying that it will only hurt undeserved communities and people still living paycheck to paycheck.

Aaron Arguello, a resident and San Antonio advocacy organizer for MOVE Texas, asked the City Council if they understand what it means to live paycheck to paycheck, and he described how he felt helpless the times his lights were cut off when he couldn’t make payments. He urged the City Council to vote against the increase.

“With so many customers already behind on bills and on payment plans, we should be doing everything we can to prevent further inequality and this rate increase would serve to accomplish the opposite,” Arguello said. 

Deborah Ponce, a local climate justice organizer with Public Citizen, said that she didn’t want to hear council members say that they know residents don’t want the increase but they have to make a tough decision. Council members still echoed this sentiment. 

“We will pay for this increase,” Ponce said. “Our kids will pay for this increase and our grandkids will be paying for the 2024 CPS computer replacement until infinity.”

Diana Lopez, an organizer with the Southwest Workers Union, also pushed back against the rate increase. Lopez, however, made her comment to the tune of “Santa Claus Is Coming To Town.” Express-News reporter Sara DiNatale caught the moment on video.

Councilman Marc Whyte proposed cutting the proposed rate increase in half, which received support from some council members including McKee-Rodriguez. Councilwoman Phyllis Viagran of District 3 asked if it was possible to approve the 4.25% increase but only implement half and then implement the other half in October when the new budget goes into effect. 

“We’ve all said that we’re here to do this together,” Whyte said. “It’s not doing it together to ask the citizens to pay for the entire damn thing. That’s not together.”

Mayor Ron Nirenberg said that he was not in favor of cutting CPS Energy’s rate increase in half, saying CPS Energy needs to catch up in terms of its cybersecurity technology. He says continuing to under fund city utilities is why certain areas around the city have better roads and sidewalks than other areas. He said the revenue increase will allow the city to fund those infrastructure improvement projects.

“For the sake of making sure we can say we didn’t support the rate increase, I’m not willing to compromise that,” Nirenberg said. “I’ll take my lumps now if it means I can do the right thing.”

Whyte’s amendment was voted down 5-6 with council members Adriana Rocha Garcia, Manny Pelaez, Sukh Kaur, Marina Alderete Gavito and John Courage voting against the motion.