![]() In January, CPS interim President and CEO Rudy Garza said the monthly charge to ratepayers for the debt would probably increase to $3 or $3.50 after all suits are resolved. Because it won’t disclose details of the settlements, it’s unknown whether that will be necessary. The $418 million in debt CPS agreed to last year was packaged into a so-called regulatory asset, allowing the utility to pay it off over time and leading to the current bump in customers’ bills.īut CPS and the city structured the asset to absorb up to $1 billion in debt if CPS is forced to pay the entire storm-related bill. The two remaining suits are contesting combined charges of about $350 million. Since early this year, the utility has settled six more cases in which it was contesting a total of about $32 million in bills. The utility has been charging ratepayers an average $1.26 per month since March to pay off that debt - a fee they’ll see on their bills for the next 25 years.Īs the final cases are added, that amount could nearly triple. On : Embattled CPS Energy head Paula Gold-Williams to step down in early 2022ĬPS settled several of its lawsuits late last year, agreeing to pay suppliers $418 million. A few weeks after the storm, CPS unleashed its legal assault on gas suppliers - even as customers and elected officials directed their anger at the utility after the deep freeze led to days-long blackouts. The ensuing financial crisis rocked CPS, leading to an exodus of top leaders. The 16-month legal saga began after CPS spent more than $1 billion buying pricey natural gas and electricity the week of the storm - roughly the same amount it typically spends for fuel in a whole year. “We are pleased with our progress in the gas supplier litigation and with only two natural gas cases remaining we are confident that our customers will pay significantly less in the long run than if we hadn’t taken on these legal actions.” “There will be no increase until further resolution of remaining open lawsuits,” the city-owned utility said in a statement. While the outcome of its legal battle is murky, this much is known: CPS has made a plan to shift virtually all of the $1 billion-plus it racked up buying high-priced fuel onto ratepayers, who will see higher bills for the next 25 years as a result.Įxactly how high they’ll go remains unclear. The others have been dropped or settled, but CPS has fought to conceal terms of the settlements. Of lawsuits filed against 18 suppliers the utility accused of price-gouging at the depths of the storm, only two remain. Lisa Krantz, Staff / Staff photographer Show More Show LessĬPS Energy’s multi-front legal war to recoup some of what it paid for natural gas during 2021’s deep freeze is winding down - leaving ratepayers on the hook for higher bills. A person carrying a light temporarily lit the hallway for the residents who were waiting in the dark. ![]() Kin Man Hui, San Antonio Express-News / Staff photographer Show More Show Less 3 of3įair Avenue Apartments residents wait for VIA buses to arrive to transport residents to the Grand Hyatt hotel downtown late Tuesday night after living without water for days in San Antonio on Feb. A small group of protestors opposed to the hike appeared before the council session. ![]() Kin Man Hui, San Antonio Express-News / Staff photographer Show More Show Less 2 of3ĬPS Energy interim CEO Rudy Garza speaks as City Council decides on whether to approve a rate hike by CPS Energy on Thursday, Jan. Several crews were in the area working to restore power to area residents. A lineman contracted by CPS Energy work on a downed line in Castle Hills as a strong cold front blows into town causing icy conditions on Thursday, Feb.
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