CPS Energy customers can expect winter 2009-10 utility bills to increase over last winter because of projected cooler weather that will cause greater use of energy, particularly natural gas for heating.

In their annual winter energy forecast, officials of Greater San Antonio’s gas and electric utility today said chillier temperatures will be the key reason for higher winter bills, however rising natural gas prices also will be an important factor. 

“Average natural gas prices are expected to increase to $6.31 per thousand cubic feet (MCF) from last year’s price of $5.78 per MCF,” said Sylvia Arnold, CPS Energy director of customer services. “The gas market remains volatile, but we continue to secure natural gas pricing below the national average.  The bottom line is that CPS Energy customers will continue to pay the lowest energy bills of any major city in the nation.”        

Electric and natural gas consumption is expected to be higher than last winter because colder weather will cause more energy to be used for heating.  CPS Energy estimates gas use for the average residential customer will be 50 CCF (hundred cubic feet) per month compared to last year’s average of 43 CCF.   Average electric use of 916 kilowatt-hours (KWH) per month last winter is also expected to be higher – 953 KWH per month.

In light of these projections, CPS Energy estimates the average monthly residential gas and electric bill for November through February at $135.50 per month, $14.57 – or 9 percent more – than last year’s average bill of $120.93.        

“Please keep in mind this is a mathematical average that takes into account energy use by all our customers,” Arnold said.  “For many customers, monthly billings will be greater because their energy consumption is much higher than average.  Cold weather for extended periods could drive energy use and bills up even more.”

Since many CPS Energy customers rely on natural gas to heat their homes, gas use will contribute significantly to their overall winter energy bills, Arnold explained.  To get the best prices available, CPS Energy has entered into a prepaid natural gas purchase agreement that will save in excess of $100 million in fuel costs over 20 years, or about $9 a year per residential customer.

As for electricity, CPS Energy will continue to generate power with less-expensive fuels such as nuclear and coal to meet almost all electric requirements.

Arnold advised customers to make timely monthly payments to avoid large past-due balances at the end of the cold-weather season.  She said CPS Energy has multiple payment options available for customers via cpsenergy.com.   “We also have several community programs in place to assist our customers who are struggling to pay their bills,” she said.  “Customers who can afford to do so can add an extra amount to their CPS Energy bill payments and designate the amount on the bill stub.  Those funds will go to REAP (Residential Energy Assistance Partnership) to help less-fortunate families in our community.”

Customers experiencing financial difficulty can contact CPS Energy 24 hours a day, seven days a week at 353-2222 to make pay arrangements.  In addition, they can visit one of four neighborhood customer service centers or more than 100 payment locations in grocery stores and other retail outlets throughout Greater San Antonio. 

“If a customer is having trouble paying energy bills this winter, he or she should get in touch with us as soon as possible to explain the circumstances,” Arnold said.  “Communication is key to working out an acceptable payment arrangement.”

To help customers save energy and money, CPS Energy is currently offering rebates on energy-efficient natural gas appliances – a $100 rebate on any make or model of gas clothes dryer, a $50 rebate on gas water heaters (any size, make, model, both tank and tank-less) and a $50 rebate on either a gas cooktop or gas stove.  Details are available at local appliance dealers and on online at cpsenergy.com.

Arnold also reminded that now is a good time to have heating equipment cleaned and inspected by a professional for safe, efficient operation throughout the heating season.