CPS Energy faces a $ 1 billion bill for the winter energy crisis

SAINT ANTHONY – CPS Energy and its customers could face a $ 1 billion bill for the February climate-related energy crisis, though utility officials say they are doing their best to protect customers .

CPS Energy CEO Paula Gold-Williams told managers during a special meeting Monday afternoon that CPS “accumulates” costs, but estimated that natural gas suppliers want $ 800 million for the fuel they sold CPS during the crisis, and the state’s grid operator, Electric The Texas Reliability Council (ERCOT) wants an additional $ 200 million. Gold-Williams said CPS would pursue regulatory assistance and the help of elected officials to prevent customers from taking on that burden.

“We are going to negotiate. We want to sit down and talk constructively with our suppliers about what has happened and how difficult the average citizen can bear. And then we’ll use any other tool in our toolbox to work to reduce that cost, ”Gold-Williams said.

Announcements

CPS bills will not include additional costs arising from winter outages; The CEO stops promising that it will never happen

Much of the state was mired in a series of forced power outages between Feb. 15 and 19 to protect the larger power grid, as cold temperatures left power plants offline. at the same time, they stimulated the demand for electricity to heat houses.

Power and fuel prices skyrocketed. The price per megawatt of electricity reached the ERCOT maximum of $ 9,000. Gold-Williams says the price of natural gas, which CPS uses at some of its power plants and provides customers with cooking and heating, rose 16,000%.

What CPS pays for fuel is usually passed directly to customers on their bills, but the utility has so far avoided it in this case.

Announcements

Gold-Williams has previously said that CPS would try to spread the cost to customers for 10 years or more. But since both customers and officials have rejected the idea of ​​incurring any additional costs, instead it has focused its comments on the $ 1 billion bill that CPS may top down first.

However, the utility is preparing to be able to pay a good part of it. The Board voted Monday to allow CPS to raise up to $ 500 million in short-term financing, in addition to other loan options it already has available.

“As we mentioned above, we pursue all the ways to reduce the cost to a reasonable and fair level. But with great caution, we offer different solutions to increase our liquidity and allow us the flexibility to maneuver while we execute our plan, ”Julie Johnson, chief executive officer of CPS’ Finance and Treasury department, told administrators.

Announcements

Patrons also voted Monday to call for an independent review of CPS’s preparedness, communication and response to the energy crisis. The council has yet to hire someone to do so and the exact timetable for the review is unclear.