Newly appointed trustee Charles Foster will head the CPS Energy Board as its new chair.  Foster was voted in unanimously by the other trustees during today’s Board Meeting.

“As I have told everyone coming in, this company is not broke, and I am not here to fix it,” said Foster. “This is a great utility, one that serves this community well with low cost, reliable power.  These employees should be proud to work here, and I am very proud to be associated with them and this great company.”

During Foster’s first board meeting, staff presented its proposed budget for fiscal year 2010-11. Staff recommended a combined operating and capital budget of $1.7 billion dollars. The proposed budget is contingent on the passage of a rate increase and the issuance of bonds.  CPS Energy staff proposed a 4.2 percent overall bill increase for customers and $359 million in bonds.

Drivers for the rate increase were:

Electric:

• New Generation (Spruce 2, Peakers)
• Environmental/Regulatory Requirements
• Maintain Reliability
• Cover Operating Costs

Gas:

• Required Civic Improvements (State, County, City)
• Maintain and improve infrastructure

CPS Energy staff will review its recommendations with the San Antonio City Council in two work sessions before presenting its final recommendations to the CPS Energy Board on Feb. 8.  If the Board approves the recommendations they will be sent to the City Council for approval on Feb. 18.