|
CPS Energy is proposing a rate hike for electricity and natural gas. Monday night, energy consumers had a chance to speak out at a public hearing. Many of the speakers took CPS Energy to task. Texas Public Radio’s David Martin Davies has the story.
February 9, 2010 · For the second time in two years, CPS Energy is seeking approval for a rate increase. Officials say this time the hike is urgently needed to pay for new energy systems, environmental clean up projects and improvements to the infrastructure.
“Now we are entering a major cycle of infrastructure,” said Jelynne LeBlanc Burley, the Acting General Manager for CPS Energy.
She told the crowd of about 50 people at La Villita assembly hall that money was needed to finish the construction of the Spruce 2 coal burning plant and two new natural gas peaking units at Braunig Power Station, plus pay for critical maintenance and government mandated environmental upgrades.
CPS is seeking city council approval of $1.7 billion dollars in bonds for operating and capital budget requirements, and they say to meet that goal they’ll need to raise rates.
“The average increase on a customer bill – assuming eleven hundred kilowatt hours – is about $3.52,” said LeBlanc Burley.
The city-owned energy provider wants the rates increased to 7.5 percent for electricity and 8.5 percent for gas.
CPS Energy said this means only a 4 percent increase in power bills.
Audience members who spoke out were overwhelmingly opposed to the plan.
They frequently reminded CPS Energy board members of last summer’s push for a nuclear energy project and the false information that was given to the public.
William Born, a resident of District 5, said his concern is “the fiasco over the new [nuclear] power plant.”
“Now coming forward with this new rate increase; when before you were asking for a 5% increase to cover for the nuclear project – it just doesn’t seem right,” he said.
Howard Rogers of the San Antonio Manufacturers Association said his group supports the rate increase because the city needs a reliable energy provider.
“We don’t want a rate increase, but we see the need for one,” said Rogers, adding “One thing we don’t want is a sloppy power company that doesn’t pay its bills on time and has to pay premium prices to borrow money.”
“We like the way that CPS is being run in this regard,” said Rogers.
However, Rodgers express concern about a proposed tiered rate plan that would charge a higher rate for electricity to homes that use more power.
“If you want life-line rates be prepared for a fight at the Manufacturers Association. You’ll have to roll it over our dead bodies, believe me,” said Rodgers.
Other speakers were also wary of that proposal, since it could penalize lower income families who live in older homes that tend not to be well insulated.
The overriding theme that came from the speakers to CPS Energy was, "We don’t trust you."
“How did CPS Energy go from flush to bust in just 4 months?” said Judy Hummel of District 9.
“Back in September our financial situation was sufficient to pay for the STP nuclear project with 5% rate increases every other year for 10 years,” she told the CPS Board.
“Today we need a substantial rate increase, and I believe you are asking for one again next year. And bond issuances just to maintain the status quo,” said Hummel.
As a result of the public relations disaster of the nuclear energy push the Ratepayers Protection Coalition was created.
Their attorney Karen Dalglish Seal told the CPS Energy board that issues concerning the nuclear proposal are not yet resolved.
“We really need transparency and honesty from CPS, guarantees on where the money will be spent, oversight of CPS subsequent to an external investigation, removal of the CPS employees who have contributed to the misrepresentations to the city council and to the public,” said Seal.
Charles Foster, the newly installed chairman of the CPS Energy board, said he understands the concerns of the ratepayers who may have lost faith in the credibility of the energy company.
“What do people in their individual relationships have to do when there’s lack of trust?” Foster asked.
“You’ve got to build it back. You’ve got to talk. You’ve got to listen,” he said. “We’re not obligated by law to do this, to have these public hearings but it’s a way to try to build it back. Try to furnish more information. Try to be more open about things as we can, but we’ve just got to communicate,” said Foster.
But with or without that trust CPS Energy is moving forward with the proposed rate hike.
The board votes on it Wednesday and then it moves to city council for final approval on February 18. If approved the rate increase will start on March 1.
|
