District 9 Councilman Louis Rowe will host a town hall meeting Wednesday, May 7 to hear public input on a proposed increase in CPS Energy rates. Already given the green light by the energy company’s Board of Trustees, the proposed 5 percent hike in electrical and natural gas rates is expected to go before a vote of the city council later this month.  If approved, the new rate could go into effect as early as June.
 
“It’s never a good time to ask for a rate increase.  Everything is going up.  We all feel it,” says Theresa Brown Cortez, CPS’ public relations manager.  On the other hand, this is the first increase proposed by the energy company in 17 years.  The company did adjust the electric base rate in 2005, a move that actually lowered bills.
 
Requiring a final approval by the city council, the proposed 5 percent rate hike will likely add another $6 to $7 to the average $135 monthly bill.  Even with the increase, Cortez says San Antonio’s energy rates will still be “lower than the 10 largest cities in the nation.”
 
Acquired by the city of San Antonio in 1942, CPS Energy serves roughly 680,000 electric customers and 319,000 natural gas customers.  More than 1,000 new clients are added every month.    
 
Along with supporting its growing service base and the rising cost of infrastructure, the revenue gained by the rate increase will support five key initiatives:
 

1. completion of a large coal-fired generating unit at Calaveras Lake and the installation of natural gas-fired peaking units at Braunig Lake;

2. environmental commitments to the community and region, including $500 million in emissions-control upgrades to existing power plants;

3. $96 million in customer rebates and incentives as part of CPS Energy’s more-aggressive energy-efficiency program;

4. Needed infrastructure such as electric substations and power lines;

5. A detailed study on the possible addition of more nuclear-fueled electrical generation.

 
Councilman Rowe’s town hall meeting will begin at 6:30 p.m. within the San Antonio Police Department’s North Substation, 13030 Jones-Maltsberger.