Strategic Energy Plan

1 9 4 2 Purchased by the City of San Antonio

The Nation’s Largest Total assets of almost $9 billion 14 percent of our gross revenues conveyed to the City as a ROI One-fifth of the City’s operating budget from CPS Energy Police and fire protection, street improvements, parks and other services

Demand for Energy 677,000 Electric customers 318,000 Natural gas customers Serving Bexar County and portions of seven adjoining counties

A Growing Greater San Antonio Energy demand increasing at approximately 3 per cent annually CPS Energy adding between 1,000 and 2,000 new customers every month

Strategic Energy Plan The 70’s Maintaining an affordable and reliable supply of energy Environmental commitment Renewable energy and energy efficiency Your Questions Conclusion

Maintaining an Affordable Supply of Electricity The 70’s Launched fuels diversification program Nuclear and Coal The bulk of electricity Adding Two Units at STP? We’re studying the possibility

Why Add Two Units at STP? Nuclear has saved our customers millions in fuel costs Fossil fuel costs have been a roller-coaster ride The best alternative for a long-term supply of electricity in the 2016 timeframe

Maintaining an Affordable Supply of Electricity New coal-fired power plant to go on line in 2010 Natural gas peaking units set for Brauning Lake in 2009

Environmental Commitment Already doing more than what is required $200 million in the best-available emissions-control equipment at the new coal plant at Calaveras Lake Investing more than $500 million in environmental upgrades on existing coal units

Renewable Energy Enough capacity for 105,000 homes

11 Percent of Peak Demand Wind Landfill gas Solar Renewable energy capacity equal to 15 percent of peak demand by 2020

A New Fuel Source Reduce energy use and help customers save money Reduce emissions by reducing the need to generate more electricity Reduce rate of growth of peak demand by 10 percent annually

$96 Million in Customer Incentives For residential customers Rebates for ceiling and wall insulation, Energy Star windows, duct testing and more For residential and commercial customers Rebates for photovoltaic solar panels that produce electricity Additional information on rebates at cpsenergy.com

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We Share Your Interest The lowest energy bills of the nation’s 20 largest cities Highest financial ratings of any electrical system in the U.S. Highest score nationally in J.D. Power 2007 Gas Utility Residential Customer Satisfaction Study