But on Monday, administrators elected to extend STEP for another five years at an annual cost of $70 million. As in the past, CPS customers will pay an average of $3.50 per month to fund it.

“This new program continues with the simple mission of reducing demand for electricity, but has more innovative programs to incentivize and assist customers, including broader access to solar power regardless of income,” said said interim CEO Rudy Garza. “This new proposal reflects the voice of our community and addresses bill savings, equity, emissions reduction, technology innovation to help businesses, homes and demand response.”

The administrators also considered options that would have reduced STEP and one that would have expanded it.

The initiative is a constellation of about 20 programs designed to reduce the electricity needed to power the city. It does this by paying for things like low-income customers who get new insulation in their homes and offering discounts to customers who buy solar panels or energy-efficient appliances.

Since coming into operation in 2008, CPS has spent $838 million through STEP to conserve roughly output from its newest power plant, the coal-fired Spruce 2 unit, which can generate 878 megawatts of electricity.

That price was one of the reasons trustee John Steen took aim last fall at STEP as he began to consider a rate increase, arguing that ending the program could offset most of the rate increase. for the customers.

As the focus on preventing climate change has intensified, utilities nationwide have relied on these efficiency and conservation programs to reduce emissions and defer construction of new power plants.

But CPS’s expenses also rose sharply, primarily due to rising natural gas costs. The average residential CPS bill in April was $136 for electric and gas service, a 20% increase from a year ago that was largely caused by rising natural gas prices.

Mayor Ron Nirenberg originally proposed an option that would have extended STEP and increased the cost to customers to an average of $5 per month. But he voted for the smaller option due to inflation and rising costs for customers.

“I would love to support an expanded program,” he said. “But given where we are and how costs are rising for everyone, from milk to rent, we have to take that into account and not move too fast.”

Administrator Francine Romero pushed for the broader option as a method to reduce emissions and tackle climate change.

“We need to do more to meet this challenge. We have never had a May as hot as this,” she said. “For us not to add the extra $1.50 a month to provide an expanded program – I feel like we’re not fulfilling our mission.”

Part of Steen’s critique is that solar rebates, a major component of STEP, have largely benefited wealthier San Antonio homeowners who can afford the large upfront costs of a rooftop solar system and later receive a credit. Steen also called STEP a “consumption tax” on customers.

He voted against extending STEP beyond its expiration in July.

“The solar program was really benefiting the wealthier areas, but you are, in effect, taxing our 900,000 customers to do these types of projects,” he said.

Since 2009, CPS has paid $153 million in customer rebates to install solar panels. For residential solar projects, the rebate is worth at least $2,500.

But CPS said it plans to move away from discounts for solar systems in favor of more accessible solar programs. This could include more community solar projects, such as large solar installations that allow CPS customers to purchase as little as a single solar panel for a few hundred dollars.

“The challenge we’ve had with solar sheds is that these systems are expensive. You must have $30,000,” said Rick Luna, director of technology and product innovation for CPS. “How can we pivot to things where we can lower the barriers? Like community solar, where I can buy a panel, and it’s a much more manageable investment for people.

[email protected]