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The city-owned power company reported the typical customer will see an average $4.45 monthly increase — or an annual increase of more than $53.
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The council passed the increase in a 8-3 vote with council members Teri Castillo, Marc Whyte, and Jalen McKee-Rodriguez voting against the measure.
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The rate hike is down from the utility's initial forecast of a 5.5% increase, and it's estimated to generate $85 million.
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District 6's Melissa Cabello Havrda filed a Council Consideration Request (CCR) this week that would modify the city's 14 percent draw from CPS Energy amid strains in the state's power grid this summer.
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The Texas power grid survived another close call Thursday evening. While record energy demand came dangerously close to the available supply, a need for rolling blackouts did not arise — as San Antonio officials had warned. CPS Energy, the municipally owned utility, thanked San Antonio residents on social media for "doing their part to conserve today."
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The adopted plan will use a mix of wind, solar, gas, and energy storage. San Antonio's Spruce 1 coal plant will be shut down by 2028, and generation at Spruce 2 plant is expected to be converted to gas by 2027.
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CPS Energy and SAWS also described other efforts to make their systems more resilient.
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The heads of CPS Energy and the San Antonio Water System said on Wednesday they have taken measures to keep the lights on and the water flowing.
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CPS Energy customers will receive a rebate in November following the proposal's inclusion in the full 2023 budget, which council members approved on Thursday along with the operating budget for 2023.
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The city of San Antonio has revised its proposal to return $50 million in unanticipated CPS Energy revenue this summer, but most of the city council doesn’t seem to be in favor of it. Instead, many council members want to see what else it could be used for with suggestions for weatherization, climate change protection and new funding mechanisms for sustainability.