CPS Energy proposes second rate increase since 2022

CPS Energy is considering yet another rate increase after it raised the cost in 2022 despite pushback from some members of the community. The board of trustees listened to a presentation Wednesday, November 8 that proposed increasing the rate by 4.25%. The meeting was held before CPS Energy brings that proposal to the City Council Wednesday afternoon.

The presentation says that residential customers would see combined change in electric and gas bills of $4.45 per month — $3.62 for electric and 83 cents for gas. CPS Energy serves 827,338 residential customers, which is 90% of the utility’s customer base. 

Commercial customers, depending on the size of their business and usage would see a high increase in their monthly bills. The possible changes in commercial electric bills are as follows: 

• Small Commercial $18
• Large Commercial $364
• Extra Large Commercial $2,970
• Super Large Commercial $17,127

When it comes to gas bills, small commercial customers could see a $7 change and large commercial customers could see an $824 change. CPS Energy has 84,122 small and medium commercial customers. 

CPS Energy increased rates by 3.85% in 2022. This proposed 2024 increase is lower than the anticipated 5.5% increase, but  CPS Energy still plans to propose a rate increase every two years. CPS Energy estimates that the increase will bring in a revenue of $85 million, $26 million of which will go towards infrastructure upgrades, according to the presentation. 

CPS Energy will host various community outreach events through December, where they will be able to talk to customers directly and listen to what they have to say.

They hope to have the rate increase approved by December. The new rates would go into effect by February.