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Local News
26 October 2025

CPS Energy Faces Scrutiny After Storm Outages And Billion Dollar Gas Plant Deal

San Antonio residents endure widespread power outages as critics question CPS Energy’s $1.4 billion gas plant purchase made without public input.

As storms swept through San Antonio and South Texas on October 25, 2025, thousands of CPS Energy customers found themselves without power, highlighting both the challenges and controversies facing the nation’s largest municipal electric and gas utility. The outages, which at one point affected nearly 4,000 residents, arrived just weeks after CPS Energy’s surprise announcement of a $1.4 billion purchase of four methane gas power plants—an acquisition made without public input, according to multiple sources including Public Citizen and local news outlets.

For many San Antonians, the immediate concern was getting the lights back on. According to CPS Energy’s outage map, 43 active outages initially left 3,939 residents in the dark as the storms rolled in. By 10:15 a.m., the number of outages had climbed to 58, though the number of affected residents had dropped to 1,768 as crews worked to restore service. The hardest-hit areas included Leon Valley, with four active outages reported.

CPS Energy took to social media to reassure residents. "Work crews will be responding to any reports of possible downed power lines and outages this morning. Delays in restoration may occur due to weather and road conditions, so please know that workers will also be prioritizing safety conditions during the morning storms," the utility stated. Residents were urged to report downed power lines by calling 210-353-HELP (4357), a reminder of the hazards that come with severe weather and aging infrastructure.

The National Weather Service had issued a flood watch from 7 p.m. on October 24 through 1 p.m. the next day, warning that rainfall totals could reach up to five inches in some spots, raising the risk of flooding in rivers, creeks, and low-lying areas. Road closures compounded the difficulties for residents and repair crews alike: Old Fredericksburg Road and Burshard Road were blocked off for ongoing construction, closures expected to last several more months.

While the storms and outages were the most immediate concern, a deeper debate was unfolding in San Antonio over the direction and transparency of CPS Energy’s long-term planning. The utility’s September announcement of a $1.4 billion purchase of four methane gas power plants in the Houston area surprised many—including clean energy advocates and everyday ratepayers—because the decision was made behind closed doors. DeeDee Belmares, a clean energy advocate with Public Citizen and former member of the CPS Energy Rate Advisory Committee, voiced the frustration felt by many: "How did such a major decision happen behind closed doors? CPS Energy customers should be disappointed with this very un-public move from their public utility."

CPS Energy leadership has defended the purchase, arguing that acquiring existing gas plants, rather than building new ones, could save customers $2 to $4 a month on their bills. These projected savings are based on cost comparisons with new construction, but critics question the reliability of such estimates. As Belmares pointed out, "Gas prices are volatile and can be affected by geopolitical events, supply chain disruptions, and severe weather, as seen during the deadly winter storm of 2021 which resulted in billions of dollars in new charges to Texans." The memory of that storm—when frozen methane gas supply chains left Texans with soaring bills that will linger for years—remains fresh for many in the region.

Beyond the question of cost, the lack of public input in such a consequential decision has raised alarms about transparency and accountability at the utility. The only formal avenue for community engagement is the CPS Energy Community Input Committee, but its meetings are not open to the public, and only summaries are made available online. "This lack of transparency in a public utility should alarm ratepayers," Belmares wrote in a recent op-ed, echoing concerns voiced by other local advocates.

Compounding the frustration is the timing of the purchase. CPS Energy is on the verge of updating its generation plan—a process intended to determine which energy sources will power San Antonio in the years to come. But with $1.4 billion already committed to additional fossil fuel capacity, some stakeholders feel the outcome has been preempted. "The update should have been the opportunity for stakeholders to engage with CPS Energy on any expensive fossil fuel expansion plans and the issues of sustainability, affordability and reliability of all power sources," Belmares argued.

San Antonio’s experience is not unique. Across Texas and the nation, utilities face mounting pressure to balance reliability, affordability, and sustainability. The Sustainable Tomorrow Energy Plan (STEP), already in place in San Antonio, offers incentives for energy efficiency upgrades—everything from insulation to new appliances—while the Casa Verde weatherization program provides free improvements to income-qualified customers. These programs, advocates say, not only help customers save money but also reduce demand on the grid, making the system more resilient to shocks like the 2021 winter storm.

"Every megawatt of energy we save is a megawatt CPS Energy doesn’t have to buy. It’s a win for everyone," Belmares noted. The savings from such programs are permanent, unlike the unpredictable costs of natural gas, which can spike due to global events or extreme weather.

The September purchase was not the first time CPS Energy made a major acquisition without public engagement. In May 2024, the utility purchased three gas plants from Talen Energy in Laredo and Corpus Christi for $785 million, again with little warning to the public. The pattern of sudden, high-stakes decisions has left some residents and advocates wary of what comes next.

As the city recovers from the latest round of storms and outages, the broader questions about CPS Energy’s future remain unresolved. Will the utility embrace a more transparent, participatory approach to decision-making? Can it balance the needs for reliability and affordability with the imperatives of climate action and public health? For now, San Antonio’s residents are left waiting—not only for the power to return, but for a voice in the decisions that will shape their energy future for decades to come.

The events of October 25 served as a stark reminder of the stakes involved. As climate-driven storms become more frequent and intense, and as energy markets grow more volatile, the choices made by public utilities like CPS Energy will have far-reaching consequences—for pocketbooks, for the environment, and for the very definition of what it means to serve the public interest.