CPS past-due bills decline as utility expects to ramp up disconnections

San Antonio Mayor Ron Nirenberg, left, and CPS CEO Rudy Garza confer during an August 2022 meeting of CPS’ board, which Nirenberg sits on.The balance of unpaid bills owed by CPS Energy customers declined for a second straight month in January, a sign the utility’s persistent cash shortage that’s been blamed on hundreds of millions of dollars in past-due bills may be easing.

Hardwick said nearly 78,000 customer accounts — which collectively owe CPS $100 million — are on plans to pay their bills over periods as long as two years. That was up from November, when accounts that owed a total of $77 million were on installment plans. Another 52,000 customer accounts that owe a total of $50 million in late bills are on the verge of having their electricity shut off for nonpayment, Hardwick said. CPS disconnected 23,000 customers last year as it sought to collect late bills.“It sounds harsh, but it’s a reality of where we are: We’re going to keep ramping up disconnects,” Garza said, suggesting the utility could shut off power to as many as 10,000 customers per week in the months ahead.

Maintaining strong credit ratings is a priority for CPS, which wants to keep the interest rate it pays on its debt low. In the coming year, CPS plans to fund its capital spending with about $518 million of debt and $423 million of its own money.CPS will spend much of 2023 trying to win approval from City Council members for a planned 5.5 percent rate increase early next year. CPS last raised rates a year ago by 3.85 percent — roughly $5 extra per month for households.

And while credit rating agencies look closely at CPS Energy’s finances, they care just as much about whether CPS can raise its rates if necessary to stay financially healthy. Even so, the City Council could see a shakeup after municipal elections in May, making the path ahead murkier.

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