San Antonio could send money back to CPS Energy in windfall years

– A proposal to stave off future CPS Energy rate increases by taking a smaller cut of its revenues has evolved into a smaller-scale plan to send money back to the utility only when its revenues far exceed estimates.

As the owner of CPS Energy, the City of San Antonio gets 14% of its gross revenues as a payment in lieu of taxes -- one of its single, largest funding sources. In FY 2024 alone, the city expects to collect $421 million from the gas and electric utility., she suggested that the utility could improve its resiliency and that a rate increase could be avoided for at least five years.

Sending $90 million back to CPS each year “would not fully offset that one , nor would it begin to address the one in 2027,” he told committee members. Though Gorzell confirmed this plan would not guarantee the utility won’t ask for a rate increase in the future, he said it could affect how much the utility requests.

Cabello Havrda said she felt “fantastic” about the plan and noted that her goals had been “reliability and affordability.”

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