CPS Energy to seek 4.25% rate increase

CPS Energy is seeking a 4.25% customer rate hike to take effect early next year, down from the 5.5% increase it had been predicting.

The city-owned utility estimates the average resident’s combined electric and gas bill would go up about $4.45 per month under the proposed rate, according to a presentation made public late Friday afternoon.

CPS will make its case for the rate hike to its board of trustees and hear public comment at a public meeting scheduled for Wednesday morning. That afternoon, utility officials are to make their pitch to City Council, which will have final say on the plan. However, council’s vote on the plan will come later.

If approved, it would be the second increase for the utility’s customers in two years.

CPS reduced the size of its request after a windfall of revenue from electricity CPS sold on the wholesale market during Texas’ record-breaking summer heat.

Presentation documents show CPS is seeking to generate an additional $85 million in customer revenue through the increase.

The first rate request meeting is set for 11 a.m. Wednesday at CPS headquarters at 500 McCullough Ave. Utility officials are scheduled to be at City Hall for a 2 p.m. session with City Council.

Customers have until 1 p.m. Tuesday to sign up to enter a public comment at Wednesday morning’s meeting. CPS is taking registrations by phone at 210-353-4662 or via email to PublicCommentRegistration@cpsenergy.com.

CPS has said its goal is to have the new rate in place by Feb. 1. That would mean both CPS and council would have to vote on the rate hike before the end of December.

In the documents posted Friday, CPS says it would use the $85 million in additional funds to increase reliability by adding new power generation; update technology and security; address population growth by adding transformers and replacing aging equipment; and hire and train new and existing employees to meet growing demand.

CPS’ last increase was approved by the city in January 2022. The 3.85% rate hike was effective that March.

CPS documents show it doesn’t plan to ask for an increase for the 2026 fiscal yearbut projects it will ask for a 5.5% increase in fiscal 2027.