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| August 2008
Our utility bills have broken another record this year:
Reference February 2008 bill 6.2 cents/KW
Reference July 2008 bill 11.6 cents/KW
this amounts to nearly a 90% price rise over 5 months!
Customers now have to contend with the base charge for energy plus the Peak Capacity Charge and the Fuel Adjustment Charge.
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| Gas Prices, Hot Weather
Expected To Raise
Summer Energy Bills
Due to escalating prices of natural gas used in producing electricity and a forecast of a hot, dry summer, energy bills are expected to be higher than last summer. The projected average residential electric bill for the months of June through September is $162, based on estimated use of 1,600 kilowatt-hours (kWh). That’s $38 – or 31 percent – above last year’s summer electric bill of $123.89 and usage of 1,416 kWh.
In light of the new summer energy forecast, Sylvia Arnold, CPS Energy’s director of customer services, said CPS Energy is working diligently to help customers hold the line on energy costs.
"We will use lower-cost fuels such as nuclear and coal as much as possible to help stabilize the cost of electricity," Arnold said. "However, our customers’ demand for summer cooling causes us to rely on natural gas to meet approximately 20 percent of our electrical-generation requirements."
The average price of natural gas for summer 2008 is estimated at about $11 per thousand cubic feet (MCF) compared to $7 per MCF last summer, 57 percent higher, Arnold noted. Prices for natural gas and other fuels tend to rise when the price of oil and gasoline rises.
Source: CPS Energy, Energy Connection, June 2008
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| Slight Rise Projected for Summer Energy Bills
Residential electric bills for summer 2007 are expected to be slightly higher than last year, thanks to higher prices for natural gas used to produce electricity, according to Sylvia Arnold, director of customer services.
However, CPS Energy is working diligently to help customers hold the line on energy costs, she said.
"We will use our lower-cost fuel resources like nuclear and coal as much as possible to help stabilize the cost of electricity," Arnold said, "however our customers' demand for summer cooling causes us to rely on natural gas to meet approximately 20 percent of our electric-generation requirements."
The average resedential bill for the month of June through September is projected to be $155.28 based on estimated use of 1,660 kilowatt-hours (KWH). That's $4.74 - or 3.2 percent - above last year's average summer electric bill of $150.54 and use of 1,653 KWH.
(SUN ENERGY SYSTEMS noted that the advertised 3.2% increase (mentioned above) coupled with the Peak Fuel Adjustment (explained below in the next section) resulted in a total billing increase of 30%! May cost was 8 3/8 cents per kW; June cost was 11 cents per kW)
Despite the slight increase, San Antonio will continue to have the lowest energy bills of the 20 largest cities nationwide, Arnold said.
"We have an adequate supply of electricity, relatively stable coal and nuclear fuel costs, and we're trying to limit our use of natural gas as power plant fuel to put our customers in a more advantageous position," said Mark Werner, director of energy market operations. "We have ample stocks of oil, another fuel that can be used in gas-fired power plants, and we purchase electricity from the Texas wholesale market when conditions warrant to further reduce our use of gas in generating electricity."
Arnold urged customers to put energy-saving techniques into daily practice to keep their energy bills affordable.
Source: CPS Energy, Energy Connection, June 2007
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| Get Set for Summer Cooling Season
From June 1 through Sept. 30, you will see an additional line item on your CPS Energy billing statement. The Peak Capacity Charge appears on most customers' bills during the hot summer months when demand for electricity dramatically increases throughout our community, mainly for cooling.
The Peak Capacity Charge helps cover the costs to operate additional facilities during summer months when the demand for energy is at its highest. As with the Fuel Adjustment Charge, CPS Energy does not profit from the Peak Capacity Charge, but simply makes up for additional expenses to serve customers.
Hot weather and individual energy use are the factors that most significantly impact your energy bill. For energy conservation tips, visit cpsenergy.com.
Source: CPS Energy, Energy Connection, June 2007
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