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CPS Energy Rate Increases Will Average About $5 per Month

CPS Energy Rate Increases Will Average About $5 per Month

CPS Energy says it will ask City Council for permission to raise rates by 4.7%, 1200 WOAI news reports.

 

  According to CPS Energy,the average family will be paying $5.19 more each month on their bill.

 

  CPS Energy spokeswoman Christine Patmon says one of the reasons for the requested rate increase is the growth of the city, and the need to erect more poles and string more wires, a process that is not cheap.

 

  "We also have substations that need to be built, and additional infrastructure," she said.

 

  For example, each of the giant electric towers that has be erected on a newly build street costs six figures.

 

  And, contrary to popular perception, Patmon says the revenue that is paid by the thousands of new homes being built and new families coming into the CPS Energy service area do not cover the costs of extending electricity infrastructure to those areas.

 

  "The answer to that is no, the new customers coming in do not pay enough to pay for the new infrastructure."

 

  CPS Energy is owned by the City of San Antonio, so City Council has to approve the requested rate increase, something that is expected to happen in the coming two months.

 

  The higher bills are expected to take effect in 2014.

 

  CPS Energy also paid out about $17 million in bonuses to top executives in 2013, or, as the utility puts it...incentive pay.  Some CPS Energy executives are stuffing their pockets with bonuses which are equivalent to 32% of their base pay.  That money comes from the ratepayers, too.

 

 

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