CPS Energy officials briefed the San Antonio City Council on Nov. 5 on progress under Vision 2027, recent power-asset acquisitions and the utilitys short- and long-term financial picture as they prepare a generation-plan refresh that will inform any future rate request.

Elena Ball, chief strategy officer for CPS Energy, said the utility has executed acquisitions and additions since adopting a community-led generation plan in January 2023 that have accelerated capacity additions and lowered costs. Ball said the utility has acquired roughly 3,900 megawatts of generation, added about 520 megawatts of battery storage and more than 700 megawatts of solar and additional wind capacity.

Why it matters: CPS told council members it expects to present refreshed analyses to its board and to the public in winter and spring, and that the refresh will inform any rate request next year. Mayor and council members repeatedly framed the briefing around the consequences for customers, particularly low-income households, if a rate increase is sought.

Ball said the moves already have produced measurable financial benefits. "Net net, with all of the key moves that we've made, we have secured $1,500,000,000 of net present value improvements over our base plan, for over a 25 year period," she said. She added that a recent September acquisition of roughly 1,600 megawatts closed after a five-month process and that, compared with building equivalent capacity today, acquisitions have saved the utility billions. Ball also said CPS is increasing its share of nuclear ownership tied to the South Texas Project and that some acquired assets include revenue contracts that provide near-term certainty.

Corey Kaczynski, chief financial officer for CPS Energy, outlined how the generation plan and other forecasting inputs feed a 25-year financial model used for board budget approvals and for any council rate request. He said quarter-two results (quarter end July) showed stronger-than-expected nonfuel revenues driven by local demand, modest overspending on O&M tied to storm response and unplanned gas leaks, and under-run on non-transmission capital pending a final close on additional STP ownership.

Kaczynski emphasized key financial targets tied to credit ratings, including a coverage ratio, a targeted peak debt-to-capitalization of about 70% over the next five to eight years, and a days-cash-on-hand threshold near 150 days. He said CPS currently has roughly $2 billion of available credit capacity.

Council members pressed CPS leadership for more granular, customer-facing materials and scenarios they could use when discussing possible rate adjustments with constituents. Councilwoman Spears said it will be politically difficult to explain near-term rate increases even when they buy lower-cost capacity that reduces future costs; several council members asked staff to provide comparative rate and bill-impact slides, affordability and assistance program details, and a deeper breakdown of O&M and capital assumptions.

On load growth and resource needs, CPS said organic load growth has accelerated since the 2022 plan assumptions. Ball said the 2022 analysis assumed roughly 100 megawatts per year of growth; CPS now sees about 200 megawatts per year organically and more than 2,000 megawatts of large-customer growth already under contract in the service territory. For that reason, CPS said the generation-plan refresh is likely to increase the total new capacity target compared with the 2023 baseline.

CPS also described portfolio composition and emissions implications: the utility has added renewables and storage and intends to replace or repower older coal units (Spruce units were discussed) and has executed acquisitions of gas-fired combined-cycle resources that are less carbon-intensive than coal. CPS noted the acquired assets sit near hydrogen infrastructure and staff said the utility is evaluating cofiring and other emerging low-carbon options over time.

Next steps: CPS staff said they are updating assumptions and will present refresh results and recommendations to their board, the community and the council in winter–spring; any formal rate filing would follow the board process and be presented to council. Council members asked for a series of follow-ups, including district-level load and construction plans, detailed O&M breakdowns, STEP (conservation) program progress, and customer-facing materials to explain trade-offs and bill impacts.