The surge in energy prices leads to concerns about CPS’s next energy bill

Santo António – Power may have been scarce this week for CPS customers, but it is likely to end up costing too.

Now that the electricity reliability crisis is over, CPS Energy CEO Paula Gold-Williams says accessibility problems are arising because of high fuel costs during cold weather. The dealership is still trying to calculate the cost of the event, Gold-Williams said, but “it will be huge” and they are trying to minimize the impact on customer accounts.

“I will say that we understand that it would be unacceptable just for customers to bear the cost on their monthly bill and as if someone could pay for it,” said Gold-Williams. “So we’re working diligently – the financial services team is working diligently, trying to figure out ways to really spread that cost, potentially maybe, you know 15 – I mean, 10 years or more to try to make it affordable. We do not have this fully evaluated. “

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Gold-Williams told reporters during a briefing on Monday that supply and demand were on the rise during cold weather that took many generating units offline across the state and froze natural gas wells.

“We were able to see from the start of this event – even before Monday’s editions – that the price of energy and the supply of energy soared prices,” said Gold-Williams. “Once again, I will mention that the natural gas that I saw went up 7,000 percent, up 10,000 percent. I stopped counting at 16,000 percent. “

Part of your CPS bill is based on a “Fuel Adjustment Fee”, which covers the fuel costs associated with CPS generation energy, the purchase of renewable energy and purchases from the open energy market. Therefore, how much CPS has to pay to supply you with power will affect how much you will pay.

Typically, these fuel costs roll over for 45 to 60 days, but CPS is trying to find a way to spread the cost over time.

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Although the final effect on his account is not yet clear, CPS officials emphasized that he has not disconnected customers since March.

The dealership will have to use “a good part” of its money to meet immediate demands to pay for the fuel it had and also use part of its credit, said Gold-Williams. Ultimately, a title may be needed to help distribute costs.

The plans will require discussion with the CPS council, the city council and answers to community questions, said the CPS CEO, but she estimated that they have about 60 to 120 days to resolve this, or it could affect purchasing ability of the fuel company on the market now.