CPS Energy faces $ 1 billion in winter energy crisis

SANTO ANTÓNIO – CPS Energy and its customers may face a $ 1 billion bill for the climate-related energy crisis in February, although utility workers say they are doing what they can to protect customers.

CPS Energy CEO Paula Gold-Williams told administrators during a special meeting on Monday afternoon that CPS is “accumulating” costs, but she 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 extra $ 200 million. Gold-Williams said that CPS will seek regulatory assistance and help from elected officials to prevent customers from carrying that load.

“Let’s negociate. We want to sit down and talk constructively with our suppliers about what happened and how difficult it is for ordinary people. And then we’ll use all the other tools in our toolbox to work to reduce that cost, ”said Gold-Williams.

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CPS accounts do not include extra winter break costs for the time being; CEO does not get to promise that it will never happen

Much of the state was plunged into a series of forced power cuts between February 15 and 19 to protect the larger power grid, as low temperatures shut down power plants at the same time, while stimulating demand for electricity to heat the residences.

Energy and fuel prices have skyrocketed. The price per megawatt of electricity reached ERCOT’s maximum of $ 9,000. Gold-Williams says the price of natural gas, which CPS uses at some of its plants and provides customers with cooking and heating, has shot up 16,000%.

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

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Gold-Williams had previously said that CPS would try to spread the cost to customers in 10 years or more. But, as customers and employees have resisted the idea of ​​paying any extra costs, she has focused her comments on how much of the $ 1 billion bill CPS can take down first.

The dealership is preparing to pay a good deal of that, however. The Board of Trustees voted on Monday to allow CPS to receive up to $ 500 million in short-term financing – in addition to other loan options already available.

“As we mentioned earlier, we are looking for every way to reduce the cost to a reasonable and fair level. But just in case, we are offering different solutions to increase our liquidity and allow us the flexibility to maneuver while executing our plan, ”said Julie Johnson, senior director of CPS’s Finance and Treasury department to administrators.

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The trustees also voted on Monday to order an independent review of the CPS’s preparedness, communication and response to the energy crisis. The board has yet to hire someone to carry it out, and the exact timeline for the review is unclear.