San Antonio – CPS Energy, the city‑owned electric and natural gas provider, said it will delay its next rate review until the middle of 2027. The decision comes as the utility acknowledges the “financial pressures” many San Antonians face from rising grocery costs, fuel prices and a decade of inflation.
Why the deferral matters for local families
In a statement released to the press, CPS Energy explained that the utility has already postponed two prior rate reviews. “We recognize the financial pressures facing our customers and will continue to implement efficiencies and cost‑saving measures while maintaining safe, reliable service,” the utility said.
With cumulative inflation of roughly 20% over the past five years, the utility emphasized that it is “holding the line” on costs for its customers. While a rate increase will eventually be necessary to fund infrastructure upgrades, CPS Energy said the timing is being adjusted to avoid adding to household burdens during a period of economic strain.
Background on recent rate actions
In December 2023, the San Antonio City Council approved a 4.25% rate increase for CPS Energy that took effect on February 1, 2024. That increase remains the most recent adjustment on record. The utility has pointed to rapid population growth, higher energy demand and aging infrastructure as long‑term drivers for future rate changes.
City officials have not yet set a date for the next council vote on a potential rate hike, but the utility indicated that a formal review will be revisited in mid‑2027.
Leadership changes and new priorities
Earlier this year, CPS Energy announced a leadership transition. Frank Almaraz was named president and chief executive officer, succeeding Rudy Garza. Almaraz has pledged to keep rates affordable while ensuring the utility can invest in critical upgrades to the electric grid and natural‑gas system.
Assistance programs for vulnerable customers
CPS Energy highlighted several assistance programs designed to help low‑income and vulnerable residents. The Casa Verde Weatherization Rebate Program offers rebates for energy‑efficiency upgrades, while the Affordability Discount Program (ADP) provides bill‑payment assistance to qualifying households. Customers in need can call the utility’s dedicated line at 210‑353‑2222 for information on eligibility and enrollment.
Impact on the community
As the nation’s largest publicly owned utility, CPS Energy serves roughly 970,000 electric and 390,000 natural‑gas customers across San Antonio and seven surrounding counties. The utility claims its rates rank among the lowest of the top‑20 largest U.S. cities, a point it hopes to maintain even as infrastructure investments become inevitable.
Local residents and business owners have expressed mixed reactions. Some welcome the temporary reprieve, noting that any rate increase would further strain household budgets already stretched by higher food and fuel costs. Others caution that delaying necessary upgrades could postpone essential reliability improvements.
Looking ahead
While the rate review has been deferred, CPS Energy affirmed its commitment to transparency and to keeping San Antonio’s energy costs competitive. The utility plans to continue reporting on its efficiency initiatives and to provide updates as the mid‑2027 review approaches.
Stakeholders are encouraged to stay informed through the utility’s website and community outreach events, especially as the city’s population continues to grow and the demand for reliable, affordable energy remains a cornerstone of local quality of life.
Original reporting: San Antonio Report — read the source article.
