CPS Energy continues to fight to protect our customers from excessive, exorbitant fuel costs associated with Winter Storm Uri. Learn more about our actions here.
As part of our continued commitment to customers, we are still holding storm costs and not passing them through to customers. For the month of April, non-storm fuel related costs have increased, resulting in an increase to the electric and gas fuel adjustment factors.
The Fuel Adjustment Charge covers costs associated with generating, or producing, energy. Typically, these fuel adjustment charges are adjusted each month to reflect changes in the cost of generating energy. Many events can increase or decrease the cost of generating energy. Some examples include:
- An increase or decrease in the cost of fuel, such as natural gas or coal, for our power plants
- A planned maintenance project at one of our power plants that causes us to temporarily source energy from alternative sources
- A change in energy usage patterns due to weather or other factors that causes us to source energy from alternative sources
- Charges associated with ERCOT’s management of the Texas electric grid
- An unplanned event that otherwise causes a change in the average cost of producing energy for our customers
For April 2021, non-storm related costs reflected in the Fuel Adjustment Charge include:
Electric Fuel Adjustment Factor:
- The South Texas (STP) nuclear generation unit is undergoing a routine re-fueling outage. This requires us to rely on other sources of generation that are more expensive.
- While the cost of natural gas has returned to normal levels following the exorbitant prices during Winter Storm Uri, we are seeing natural gas costs that are slightly higher than pre-storm levels. This increases the cost of operating our natural gas generation units, resulting in higher average fuel costs.
Natural Gas Fuel Adjustment Factor:
- The increase in the cost of natural gas costs outlined above is the primary driver of the increase in gas fuel adjustment factor.
The April 2021 average cost per kWh for residential customers is 11.8 cents.
The current 12 month average is 11.0 cents
The electric and gas charges found on your CPS Energy residential bill are made up of base rate components, the fuel adjustment, and the regulatory adjustment.
The formula for the residential electric base rate combines:
- The Service Availability Charge covers the cost of metering and billing for your address, regardless of consumption.
- The Energy Charge recovers costs for power plants and other infrastructure based on the amount of electricity you use.
- The Peak Capacity Charge applies during the months of June through September when an additional charge of $0.0198 is added to bills for every kilowatt hour (kWh) used in excess of 600 kWh. The Peak Capacity Charge covers the higher costs for electricity CPS Energy incurs during summer months when the demand for electricity is at its highest.
For the natural gas rate, the residential base rate includes just the Service Availability Charge and the Energy Charge. Each of these items is listed on the back of your bill.
Retail rates contain an electric fuel adjustment, or gas cost adjustment clause, which provides for recovery of fuel costs.
Electric and gas fuel adjustment factors (listed below) are set each month and may be positive or negative, depending on whether fuel costs for the period are above or below the amount that is built into the base rate. As a result, customers may see a change or a credit on their monthly bill.
For retail customers, the Fuel Adjustment Charge may appear as a charge or a credit on your monthly bill. Here’s what goes into it:
- Generated Power Costs––fuel costs associated with CPS Energy’s nuclear, coal, and natural gas units
- Renewable Power Costs––renewable energy purchases of wind, solar, and landfill gas
- Market Power Purchases––purchases from the open market
- Save for Tomorrow Energy Plan (STEP)––recovers portion of costs associated with energy efficiency
Costs recovered through the Regulatory Adjustment factor include:
- Electric Reliability Council of Texas (ERCOT) administrative fee
- North American Electric Reliability Corporation / Electric Reliability Organization (NERC/ERO) fees
- Expenditures associated with the ERCOT-wide transmission grid
The City of San Antonio delivers a broad range of services – from waste collection to park maintenance – to you and your neighbors. The fees for many of those services are collected through your CPS Energy bill. For the city government, this is a convenient and efficient way to collect monthly fees. You’ll find a complete list of these fees under “City Services” on the back of your CPS Energy bill. CPS Energy is not responsible for providing these services. They include:
- Garbage Collection Services costs
- Brush Fee Environmental Services Fee
- Environmental Services Fee
To find out more, contact City Services Requests & Information by dialing 311 or 210-207-6000 between the hours of 7:00 a.m. to 7:00 p.m. Monday through Friday; 8:00 a.m. to 5:00 p.m. Saturday and Sunday. Assistance is available online at https://311.sanantonio.gov/services.