Most residential CPS Energy customers will see about a $4.45 bump in their monthly electricity utility bills after the San Antonio City Council approved a 4.25% increase in electricity rates.
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. The rate increase was nearly cut in half after an amendment to reduce it to 2.125% failed by a single vote. The new rate would take effect in February when CPS Energy’s fiscal year begins.
San Antonio Mayor Ron Nirenberg said not providing additional support for the utility now would cost more over time.
“CPS Energy is an essential city service that is owed by every single one of us in the community,” he said. “And we have a responsibility to maintain it and that's why we’ve been doing this methodically, conscious of the challenges and the rising costs.”
Earlier this week the CPS Energy Board of Trustees approved the rate increase unanimously. The city council is the final say in a utility rate increase as the City of San Antonio owns both CPS Energy, the only electricity provider for Bexar County and the San Antonio Water System.
According to CPS Energy, most residential customers pay about $181 per month in their average electric and gas bill.
Under the increase, the utility is expected to gain an additional $85 million in annual revenue, 14% of which would go to the City of San Antonio’s general fund as part of its regular payments to the city. The utility plans to invest much of that into beefing up its staffing capabilities and providing security upgrades to prevent cyber attacks.
District 10 Councilman Marc Whyte proposed cutting the rate increase in half, however, it failed in a 5-6 vote that split the council with Councilmembers Castillo, McKee-Rodriguez, Phyllis Viagran, and Manny Pelaez supporting the amendment.
The utility last increased rates in 2022, along very similar lines in an 8-3 vote. Another rate increase could be expected in two years.
