Wrong time to ask residents to pay more
After the devastation of Winter Storm Uri, there was hope that changes to the grid would occur at the state level.
People participated in hearings in Austin, wrote letters and made phone calls demanding answers, accountability and changes. Unfortunately, we were all disappointed with the lack of legislative action to provide substantive structural changes at the state level. Locally, we participated in a months-long study through the city’s Committee on Emergency Preparedness to examine the failures at the municipal level when our own power and water infrastructure proved to be far less resilient than it should be.
While the city of San Antonio, CPS Energy and San Antonio Water System have started implementing some of the recommended changes, there is still work to be done. There is a sense of fear that another storm could cause equal or worse conditions in winter months and in future summer heat waves.
With a catastrophe like Winter Storm Uri and the collective sense of anxiety across our society still fresh in people’s minds, the last thing I would have thought CPS Energy would do is propose a rate increase. I was wrong.
In a December City Council session, CPS Energy proposed a base rate increase of 3.85 percent, along with a 0.8 percent charge to pay for fuel used during the winter storm. This would amount to an average increase of $5.10 to a monthly residential bill. A forecast was also presented that showed future potential rate increases from CPS Energy. This included 5.5 percent every two years through 2027, meaning potentially a 14.85 percent increase in the base rate over the next five years. CPS Energy would have to get City Council approval for each rate increase.
In that briefing, CPS Energy also reviewed how funds from the rate increase would be allocated and shared why it was necessary to be implemented in February. The main categories include infrastructure resilience, technology updates, growth and stabilization of staffing levels for a total of $73 million in new revenue per year.
I had several questions and concerns, but none bigger than the timing of the request. This is the absolute worst time to ask ratepayers to pay more, especially when there is so much trauma from the past 18 months. Trust between the community and CPS Energy is low. Throughout Winter Storm Uri and afterward, many residents expressed serious concerns about what they felt was a lack of leadership at CPS Energy. People are outraged about paying for fuel charges during the storm that were out of their control. Many must pay despite not having power for days.
Even though CPS Energy has some of the lowest energy prices in Texas on the residential side, our community is also made up of some of the most socioeconomically challenged residents. Any increase, even 3.85 percent, impacts people on a strict budget or a fixed income. I have heard the argument that it’s only a few dollars. At face value it may not seem like much, but add a new fee here, tack on a few dollars there, and after a while those few dollars add up.
I agree we need to make CPS Energy more resilient and better prepared for future challenges. I also know that in time we will need to raise rates. Right now, we need more time to digest what is being asked and the impact on our pocketbooks. We also need to fully understand the cost of doing nothing. I believe it could cause more harm than good, but we need to fully investigate to be certain. City Council will vote on this rate increase Thursday. This is too soon. Rushing to pass a rate increase without thoroughly explaining it to the community is ill-considered. Speak to your elected representative and let them know your opinion on the increase. There is never a good time for rate increases, but there can be a bad time. This is that bad time.