San Antonio’s city-owned utility has signed off on a sprawling $2.8 billion budget for its next fiscal year, a plan packed with infrastructure and reliability projects that still leaves a roughly $50 million hole to be filled later.
CPS Energy said the Fiscal Year 2027 plan (Feb. 1, 2026–Jan. 31, 2027) focuses on what it calls essential investments, steering about 70% of spending toward power generation, new customer connections, regulatory compliance and workforce needs, according to CPS Energy. The budget, which the utility says takes effect immediately, backs work that ranges from pole replacements and tree trimming to gas-safety operations and cybersecurity.
Where the $50 Million Gap Comes From
When CPS Energy combined its capital and operating budgets, the total came to about $5.26 billion in planned expenditures against roughly $5.21 billion in projected revenue, leaving the $50 million shortfall, according to reporting by the San Antonio Express-News. The $2.8 billion figure reflects the utility’s capital and nonfuel operating budgets and does not include CPS Energy’s annual payment to the city or fuel-related items, the paper reported.
City Leaders Push to Avoid a Rate Hike
Mayor Gina Ortiz Jones and City Council members pressed CPS Energy to look inward for fixes, such as using reserves or tapping credit, instead of jumping straight to higher customer rates. The gap is roughly 1% of the overall spending plan, which officials argued should be small enough to manage without a bill increase, Community Impact reported. Council members also stressed that spending on labor and system reliability should not be sacrificed while the utility sorts out its options.
What Comes Next
CPS Energy officials told their board of trustees they will track how summer revenues come in before deciding how to plug the gap. The utility’s chief financial officer said there are “many ways” to move forward and that the timing will depend on how revenues materialize, the San Antonio Express-News reported. The board’s vote followed a monthlong delay and a reworked presentation of the spending plan, as first highlighted by the San Antonio Business Journal.
CPS Energy said the full FY 2027 Budget Plan will be posted on its website and that trustees approved the measure so planned infrastructure work can keep moving, according to CPS Energy. For now, customers are left to watch whether the $50 million gap gets absorbed inside the utility’s books or ends up shaping a future rate debate.
