Thursday, March 27, 2008

Your Money for Nukes, Coal and other things that make you sick

Residents oppose bigger CPS bills

Web Posted: 03/26/2008 12:00 AM CDT
Vicki Vaughan, Express-News
Opponents of a rate increase proposed by CPS Energy far outnumbered supporters at a public hearing Tuesday night, with most objecting to the part of the boost that would fund a nuclear plant study.

More than 30 residents spoke at the hearing at La Villita Assembly Hall, which came less than a week before the CPS Energy board of trustees is expected to vote on the rate increase proposal, which could go into effect in May.

CPS Energy officials said the nearly 5 percent increase for electricity and natural gas customers would add about $6 to the average residential monthly bill of $135. That's a revision of an earlier estimate by the city-owned utility that bills would increase by almost $7 a month.

CPS Energy has said that only a small percentage of the increase would fund a controversial $206 million study on the expansion of the South Texas Project nuclear plant near Bay City, southwest of Houston.

Although CPS Energy told the crowd of about 120 that CPS has the lowest electricity rates in Texas, that didn't comfort Consuelo Pedroza, who spoke in opposition to the rate increase.

"It's not fair to compare our rates to other cities, because wages in San Antonio are lower," she said. A senior citizen on a limited income, Pedroza objected to the proposed expansion of the nuclear plant, saying she's concerned about nuclear waste disposal.

CPS Energy deputy general manager Steve Bartley said that "there's no silver bullet for meeting our future demands" for energy. The utility has worked hard to achieve a balanced portfolio that includes renewable sources and conservation, he said.

But many speakers insisted that CPS Energy isn't doing enough to boost sustainable energy sources.

"Did you really consider all the safe, clean alternatives? I think not," said Loretta Von Copponelle of the Lone Star Chapter of the Sierra Club. The decision to spend $206 million to study expanding the nuclear plant "was a wrong one."

But Richard Perez, president of the Greater San Antonio Chamber of Commerce, said the chamber supports the proposed rate increase. "I urge you all to move forward; the plan is very sound."

Howard Rogers, a member of the San Antonio Manufacturers Association, said he supports the use of renewable energy sources, but new plants must be built to handle future energy needs. "The (rate) plan as currently presented strikes a nice balance," he said.

CPS Energy officials said the increase would be the first since 1991 and that the utility needs to raise rates to pay for a number of major projects now under way, including the completion of a coal-fired plant at Calaveras Lake to be completed in 2010 and a detailed look at whether the utility should add two reactors to the South Texas Project nuclear plant.

CPS Energy's board last year approved spending $206 million to study the feasibility of the nuclear plant expansion.

The utility joined NRG Energy of New Jersey last fall in filing the first application to build a nuclear plant in the United States in almost 30 years. NRG has estimated that adding two reactors to the South Texas Project could cost $6 billion to $7 billion.

If CPS Energy trustees approve the rate increase Monday, the City Council must then approve the measure.

More:

CPS nuclear project poses big questions, San Antonio Express News

Foes claim nuke plan cost estimate lowballed, San Antonio Express News

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