How CPS Energy’s New Peak Demand Charges Are Transforming HVAC Repair and Maintenance Strategies in Bexar County

With CPS Energy’s 4.25% rate increase that went into effect February 1, 2024, commercial and residential customers across Bexar County are experiencing significant changes in their energy costs. The Peak Capacity Charge, which applies during June through September when additional charges are applied for every kilowatt hour (kWh) used in excess of 600 kWh, covers the higher costs for electricity CPS Energy incurs during summer months when demand for electricity is at its highest. These evolving utility rate structures are fundamentally changing how property owners approach HVAC system operation and maintenance.

Understanding CPS Energy’s Peak Demand Pricing Structure

CPS Energy’s Peak Capacity Charge only applies during the months of June through September when an additional charge is applied for every kilowatt hour (kWh) used in excess of 600 kWh, covering the higher costs for electricity during summer months when demand is at its highest. For commercial customers, demand charges make up a significant portion of the electricity bill for larger companies, with larger businesses also paying what’s called a demand charge. This pricing structure directly impacts how HVAC systems should be operated and maintained to minimize costs.

The 4.25% increase helps the utility raise an additional estimated $85 million per year, with about $26 million going towards reliability and resiliency efforts such as increased plant maintenance, replacing and upgrading aging infrastructure. Understanding these cost drivers helps property owners make informed decisions about their HVAC maintenance strategies.

Strategic HVAC Maintenance for Peak Demand Management

With CPS Energy’s peak demand charges in effect, proactive HVAC maintenance becomes more critical than ever. Consistent upkeep on building systems results in an impressive 50% reduction in energy use for electrical systems and 10% for natural gas systems in most commercial buildings, with seasonal maintenance helping HVAC systems in peak form impact the bottom line.

Key maintenance strategies include:

Spring HVAC maintenance focuses on preparing your air conditioning system for the impending peak cooling season, with tasks essential for ensuring your A/C system is finely tuned and ready to handle rising temperatures, maintaining good indoor air quality, optimizing cooling system efficiency, and preventing system overload during increased demand
Regular maintenance as the cornerstone of HVAC energy efficiency, ensuring that air handling units (AHUs), chillers, boilers, and other critical equipment operate at their peak
Performing seasonal tune-ups by scheduling comprehensive tune-ups before peak seasons to inspect thermostats, clean components, and test critical parts

Energy Efficiency Improvements to Combat Rising Costs

Studies have found that high-efficiency systems can lower energy costs by 20% or more, with the U.S. Department of Energy stating that upgrading your HVAC system can reduce monthly utility bills by a staggering 20–40%. During CPS Energy’s peak demand periods, these savings become even more valuable.

Critical efficiency measures include:

Addressing dirt and neglect as the top causes of heating and cooling system failure and inefficiency, with maintaining equipment keeping systems operating at peak performance and preventing future problems and unwanted costs
Ensuring HVAC systems run at peak efficiency to save 5-15% on annual energy costs – for instance, if your yearly energy bill is $2,400, you could save between $120 and $360 each year with regular maintenance
Properly designed and tuned control algorithms that can reduce HVAC energy consumption by up to 30%, with key control loops including supply air temperature control, pressure control, and utilizing economy mode for free cooling

Professional HVAC Services Make the Difference

When dealing with CPS Energy’s evolving rate structure, partnering with experienced local professionals becomes essential. Texas Air Repair brings family-owned reliability to every HVAC project in Bexar County, TX, understanding that comfort can’t wait, which is why they’ve built their reputation on honest service, fair pricing, and getting the job done right the first time.

Texas Air Repair has been serving Bexar County, TX for 20+ years, starting when their founders recognized that Bexar County needed HVAC services built on family values: reliability, integrity, and genuine care, with over thirty years of experience providing heating and cooling services across San Antonio, Houston, and Austin. For property owners seeking reliable hvac repair bexar county,TX, this local expertise proves invaluable in navigating both system optimization and utility cost management.

Demand Response and Load Management Strategies

CPS Energy’s Demand Response program is a voluntary load curtailment program for commercial and industrial customers, designed to reduce CPS Energy’s peak load growth by incentivizing customers to shed electric loads on peak summer days, with Demand Response season beginning June 1 and ending September 30.

Smart HVAC management during these periods includes:

Setting optimal temperatures to avoid unnecessary cooling or heating, limiting air conditioning to necessary spaces and closing dampers/grills in unused areas
Preparing for summer when demand for air conditioning skyrockets to keep businesses cool and comfortable, ensuring HVAC systems are well-prepared with peak cooling season maintenance before temperatures soar
Implementing comprehensive preventive maintenance contracts designed specifically for commercial HVAC systems, including regular inspections, cleaning, filter changes, and tune-ups scheduled at convenient times, helping avoid unexpected breakdowns, extending equipment life, improving energy efficiency, and maintaining warranty coverage

Looking Forward: Adapting to Utility Rate Changes

CPS Energy’s multi-year plan showed the utility would require at least two 5.5% rate increases — one approved in 2023 and one in 2025 — to keep up with growing costs, with the utility still planning to seek an additional 5.5% base rate increase for fiscal year 2027, with CPS Energy officials likely launching that process in 2025.

Property owners must prepare for continued rate evolution by investing in:

Proper HVAC maintenance as essential for achieving energy efficiency and ensuring long-term reliability, with properly maintained systems lowering energy costs, extending equipment life, and supporting sustainability goals, while implementing proactive HVAC maintenance strategies significantly improving system performance and impacting the bottom line
Customized heating and cooling services designed to minimize downtime and maximize energy efficiency, with over 20 years of experience serving San Antonio’s commercial sector, understanding that HVAC systems are critical to daily operations, providing services from emergency repairs to preventative maintenance to keep businesses running smoothly year-round

As CPS Energy continues implementing rate adjustments to fund infrastructure improvements and meet growing demand, strategic HVAC maintenance and operation become more critical than ever. Property owners who proactively address system efficiency, partner with experienced local contractors, and implement demand management strategies will be best positioned to manage rising energy costs while maintaining comfortable, productive environments.