Trystan Casey
CPS Energy, a utility company based in San Antonio, Texas, has been criticized for cutting off electricity to customers who are unable to pay their bills. CPS Energy has cut power to tens of thousands of households and businesses annually, with a particular focus on low-income and vulnerable communities. During the COVID-19 pandemic, CPS Energy temporarily paused disconnections, but they have since resumed the practice. CPS Energy offers payment plans and assistance programs to help customers manage their bills and avoid disconnection. However, customers must actively enroll in these programs to avoid losing power.
| Characteristics | Values |
|---|---|
| CPS Electricity Cut-off Reasons | Non-payment of bills |
| CPS Electricity Cut-off Timeline | Varies; could be after a year of non-payment or within 30 days of non-payment |
| CPS Electricity Cut-off Alternatives | Payment plans, financial help, or assistance programs |
| CPS Electricity Cut-off Process | Initial site inspection, validation of service address, review of permits, and account closure |
| CPS Electricity Cut-off Prevention | Contact CPS to discuss payment plans or financial assistance |
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What You'll Learn
CPS cut-off power to 100,000 homes/businesses annually before the pandemic
CPS Energy, the nation's largest public power, natural gas, and electric company, has been known to cut off electricity to customers who fail to pay their bills. Before the pandemic, CPS cut off power to about 100,000 households and businesses annually.
CPS Energy serves more than 884,811 electric and 366,709 natural gas customers in San Antonio and parts of seven neighbouring counties. The company offers several payment plan options and assistance programs for various age and wage groups. They also partner with city and county assistance programs.
CPS Energy typically provides a 30-day warning before disconnecting power. However, during the pandemic, CPS Energy and other utilities prioritized human well-being over profit, temporarily pausing disconnections. As of August 2021, CPS Energy had resumed plans to disconnect power for some customers.
CPS Energy has been criticized for its high number of disconnections under CEO Paula Gold-Williams. While state unemployment rates declined from 8.3% in 2010 to 3.5% in 2019, disconnections soared during Gold-Williams's tenure. In 2018, an estimated 300,000 people in San Antonio, a city of 1,500,000, experienced power cut-offs.
To avoid disconnection, customers are advised to contact CPS Energy to discuss payment plans and explore financial assistance options.
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CPS paused disconnections during the pandemic
CPS Energy, the only power utility in San Antonio and Bexar County, paused disconnections during the COVID-19 pandemic, which began in March 2020. The company halted shutoffs due to the economic impact of the pandemic, which saw thousands of people in San Antonio lose their jobs.
During the pandemic, the city made available several resources to ratepayers, such as the emergency housing assistance program, to provide financial support in making utility payments. CPS Energy also provided over $31 million in assistance since the pandemic began.
In March 2021, President and CEO Paula Gold-Williams announced that CPS Energy would likely resume disconnections in the coming months, citing the increasing vaccination rates in Bexar County. However, San Antonio Mayor Ron Nirenberg questioned the decision, stating that vaccination rates would not immediately impact the financial struggles of residents.
CPS Energy planned to resume disconnections in a staggered manner, with large commercial customers facing disconnections as early as September 1, 2021, and small businesses by October 1, 2021. For residential customers, disconnections would begin on October 1, 2021, for those past due over 30 days who were not enrolled in a payment assistance program or had not responded to outreach. Disconnects for residential customers enrolled in assistance programs were scheduled for January 4, 2022.
Despite calls to maintain the pause on disconnections due to the ongoing impact of the pandemic, CPS Energy resumed forced disconnections in August 2024, targeting thousands of residential accounts with past-due payments.
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CPS resumed disconnecting power in October 2021
CPS Energy, a utility company in San Antonio, Texas, announced in July 2021 that it would resume disconnecting power to customers who were behind on their bills starting October 1, 2021. The decision to resume disconnections came 16 months after CPS Energy had temporarily halted cutting off power to households during the COVID-19 pandemic.
The company cited financial pressure from past-due customer accounts as the reason for resuming disconnections. At the time of the announcement, nearly one in five residential customers, totalling about 154,000, had fallen at least 30 days behind on their bills, amounting to $92.5 million in delinquent residential accounts.
CPS Energy stated that customers who were enrolled in a payment assistance program or had responded to outreach would not be disconnected. The company offered multiple payment plan options and assistance programs for various age and wage groups, and also partnered with city and county assistance programs.
The resumption of disconnects in October 2021 was part of CPS Energy's return to normal billing operations after suspending disconnections due to the pandemic. The company had initially started the suspensions in March 2020, at the onset of the pandemic, and had also waived late fees for customers who enrolled in a payment plan.
While CPS Energy resumed disconnecting power in October 2021, it was important to note that they emphasised working with customers to prevent disconnections. The company encouraged customers to call and work out payment schedules, stating that nobody needed to be disconnected if they communicated their specific situations.
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CPS offers payment plans and assistance programs
CPS Energy offers a range of payment plans and assistance programs to support customers who are struggling to pay their bills. These options are designed to help customers avoid service disconnections due to past-due payments.
The Modified Budget Payment Plan allows customers to break down past-due amounts into installments, which are then added to their monthly budget payment plan. This option provides flexibility and makes it easier for customers to manage their debt.
For senior citizens, CPS Energy offers additional support through the Senior Citizen Billing Program, which provides additional time for seniors to pay their energy bills. The Senior Citizen Late Fee Waiver is another initiative that allows qualifying seniors over 60 years old to have their late charges waived.
CPS Energy also partners with local governments and organizations to provide financial assistance to those in need. The Residential Energy Assistance Partnership (REAP), a collaboration between CPS Energy, the City of San Antonio, and Bexar County, offers energy bill assistance to eligible customers up to two times per year. CPS Energy contributes $1 million or more annually to the REAP fund, demonstrating their commitment to supporting the community.
In addition to financial assistance, CPS Energy promotes higher education and career development through the CPS Energy Student Assistance for Education (SAFE) Program. This initiative encourages students to pursue professional careers in public utilities and provides opportunities for technical education.
CPS Energy also recognizes the importance of supporting first responders. The First Responders with Burn Injuries Discount Program assists those who have sustained severe burn injuries in the line of duty, helping with electric bill payments for those who have difficulty regulating their core body temperatures as a result of their injuries.
By offering these diverse payment plans and assistance programs, CPS Energy demonstrates its commitment to supporting customers and ensuring that everyone has access to the essential services they provide.
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CPS cut-offs impact 300,000 people in San Antonio
CPS Energy, a utility company in San Antonio, has been facing challenges with customers falling behind on their bills, resulting in potential electricity cut-offs. In July 2024, approximately 73,000 customers were at risk of power shut-off due to past-due bills totalling $28 million. This issue is a continuation of financial difficulties that began during the pandemic when CPS implemented a moratorium on disconnections for non-payment, causing past-due bills to surge to about $208 million in December 2022.
To address this situation, CPS has actively encouraged customers to enrol in payment plans, reporting that about 70% of customers remain on the plans once established. By the end of April, roughly 74,000 past-due accounts were on payment plans, significantly reducing the total amount owed. Additionally, CPS has increased its outreach efforts, utilising payment reminders to communicate with customers.
CPS Energy has a complex structure, functioning as both a business and a governmental agency. This hybrid model aims to balance profitability with community considerations. CPS recognises its vital role in San Antonio, demonstrating flexibility in challenging times, such as during the federal government shutdown in 2018 when it halted shut-offs for federal workers.
The impact of potential electricity cut-offs extends beyond the 73,000 at-risk customers, as it may also affect the broader community of approximately 300,000 people in San Antonio. While CPS navigates the financial challenges, it continues to explore alternative energy sources and strives to assist customers in reducing their energy consumption, particularly in the use of climate-altering fossil fuels.
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Frequently asked questions
CPS Energy has been known to cut off electricity for unpaid bills within a year. However, they offer payment plans and assistance programs for various age and wage groups, and they do not cut off electricity if they have started a payment plan with you.
CPS Energy will perform an initial site inspection and validate the service address where removal is being requested. They will also review the demolition permit and ensure the account is closed. If there are any costs for removal and demolition, the customer must pay the invoice within 5 business days to avoid an extension of the completion date. Invoices not paid within 90 calendar days will be voided.
In 2018, CPS cut off electricity to roughly 300,000 people in San Antonio, a city of 1,500,000. This number is likely higher than usual due to the pandemic, during which CPS paused disconnections. In a typical year, they cut off around 100,000 customers.
You should call CPS and try to work out a payment plan with them. They also offer assistance or relief programs that you may be eligible for.
