San Antonio utilities diverge on rate hike approvals

San Antonio utility providers are moving in different directions regarding rate increases. CPS Energy, the city-owned power utility, has decided to drop its request for a rate hike through the San Antonio City Council. The utility cited financial pressures on customers, including inflation, as the reason for deferring the review until mid-2027. CPS Energy noted that while infrastructure improvements are necessary due to population growth and aging systems, they will focus on cost-saving measures for now.

In contrast, the San Antonio City Council approved a rate increase for the San Antonio Water System (SAWS). The approved hike is expected to increase residential bills by approximately 29% over a four-year period, starting January 1. SAWS officials stated the increase is essential to maintain and upgrade infrastructure, noting the utility lost 16.5 billion gallons of water last year due to leaks and faulty pipes. The council revised the plan at the last minute to lower the rate ceiling for the final two years of the implementation period.