CPS Energy Board of Trustees unanimously approved a 3.85% rate increase Monday. They also approved a regulatory asset, or a fuel adjustment charge increase, which the utility says will recover $418 million in fuel costs from last February’s winter storm.
CPS Energy officials say this is the first rate increase in eight years.
“We’re appreciative of the approval we gained today from our Board of Trustees to move this process forward to City Council and we’re thankful to the leaders of both the Rate Advisory Committee and the Citizens Advisory Committee for attending today’s Board meeting and sharing the perspectives of their respective committees,” said Rudy D. Garza, interim president & CEO of CPS Energy.
The 3.85% rate hike, along with the regulatory asset — an .80% fuel adjustment charge increase — will impact customers’ bills depending on how much power and gas is used.
CPS Energy officials say that the rate hike for the average residential customer could add $3.84 to their monthly bill and an additional $1.26 per month for fuel adjustment charges.
The fuel adjustment charge would spread the $418 million to be recovered over 25 years, officials said.
Despite the Board of Trustee’s approval, the San Antonio City Council still has to approve the rate hike. Council Members are expected to vote on the rate increase Thursday.
If approved by the council, the increase would take effect on March 1.
You can read more on the proposed rate request here.