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he utility industry is
experiencing a major
evolution as new technologies,
increased regulations and
changing customer expectations
converge – impacting not only the way
we do business, but also our strategic
outlook for years to come. In this rapidly
changing environment, we are proud
to be recognized as an innovative
leader in the industry for our forward-
thinking approach and public/private
partnerships. We continue to proactively
embrace change and leverage new
technologies to create programs and
partnerships that bring value to our
customers and community stakeholders.
The year 2014 was a period of solid
performance for us. We expanded our
diverse energy portfolio with additional
commitments to affordable clean power.
Currently, 54 percent of our generation
comes from low- or non-carbon-
emitting energy sources. We also have
the most solar generation capacity in
Texas, and we rank seventh in the nation
L E T T E R F R O M T H E C E O
for installed solar power. In addition,
this past year we were recognized by
the Pew Charitable Trusts and Cogent
Reports for leadership in renewable
energy development and proudly serving
as “a customer champion.”
We continue to adopt the latest
technologies to improve operational
efficiencies and reliability and to expand
our customers’ options and experiences.
In 2014, we launched our Smart Grid
Initiative that will help strengthen our
top-tier electric reliability rating. With
this state-of-the-art infrastructure, our
customers will have immediate access to
more information, giving them the tools
to better manage their energy use.
As an integral part of the community,
our New Energy Economy (NEE)
partnerships have brought leading-edge
technology and economic development
to our community with an impact of more
than 500 jobs created and an economic
benefit of more than $800 million annually.
Our commitment to customer
satisfaction has driven the development
of innovative programs. This past
year, we created a new field-based
community engagement team to
strengthen our grass-roots customer
outreach efforts. In addition, we’re pleased
that our Casa Verde weatherization
program reached a milestone of providing
valuable energy improvements to more
than 10,000 customers.
Furthermore, our team members
pledged a record-setting $1 million to
our annual United Way campaign and
contributed nearly 14,000 volunteer hours
to assist local non-profit organizations.
Our successes and milestones
throughout the year and our ability to be
an innovative industry leader is due to the
hard work and commitment of our team
members, our Board of Trustees’ vision
for the future, and the staunch support of
our Greater San Antonio community.
> > C P S E N E R G Y I S P R O U D T O B E R E C O G N I Z E D
A S A N I N N O V A T I V E L E A D E R I N T H E I N D U S T R Y
F O R O U R F O R W A R D - T H I N K I N G A P P R O A C H
A N D P U B L I C / P R I V A T E P A R T N E R S H I P S . < <
-Doyle N. Beneby
Our commitment to customer satisfaction
is driving technology enhancements and
new ways of doing business at
CPS Energy. We strive to provide
exceptional service to more than 1 million
gas and electric customers every day.
In 2014, we created a field-based
community engagement team to
strengthen our customer outreach
through grass-roots efforts and
take a more proactive approach
to customer service.
Embedded in the group is the mobile
Customer Response Unit (CRU), a
distinctive hybrid model of customer
service. The CRU works directly with
customers with unique needs using a
case management style. Extra time,
coordination and attention was given
to 400 cases in six short months after
the CRU activated, allowing greater
efficiency among customer service
representatives who respond to more
than 4 million requests annually.
The community engagement
group increased awareness of and
D E L I V E R I N G C U S T O M E R C O M M I T M E N T
>> WE STRIVE
TO PROVIDE
EXCEPTIONAL
SERVICE TO
OUR 772,000
ELECTRIC AND
337,000 GAS
CUSTOMERS
EVERY DAY. <<
650
I n 2 014 , t h e
C u s t o m e r Re s p o n s e U n i t
e n g a g e d w i t h c u s t o m e r s a t
o u t r e a c h e v e n t s .
O U R C U S T O M E R R E S P O N S E U N I T T A K E S F A C E - T O - F A C E S E R V I C E D I R E C T L Y T O C U S T O M E R S T H R O U G H O U T O U R C O M M U N I T Y .
O U R C U S T O M E R S E R V I C E R E P R E S E N T A T I V E S D E L I V E R E D A D V I C E , O P T I O N S A N D A S S I S T A N C E D U R I N G 4 . 1 M I L L I O N U N I Q U E C U S T O M E R E X P E R I E N C E S L A S T Y E A R .
enrollment in assistance programs,
and engaged customers about energy
efficiency and safety at 650 outreach
and intake events. With an existing
Casa Verde weatherization team
under its umbrella, the group hit a
major milestone of providing energy-
saving improvements to more than
10,000 customers. The Casa Verde
weatherization program is helping our
customers save an average of $350 a
year on their energy bills.
In 2014, our Board of Trustees, and
subsequently the San Antonio City
Council, approved a late-fee waiver
for our low-income seniors. More
than 6,400 seniors are expected to
immediately benefit from the waiver,
saving them a cumulative total of
about $88,000. It complements
several other assistance programs,
including ones for burned military
veterans, low-income families with
children, the disabled, and those facing
temporary hardships. Additionally,
we provide a minimum of $1 million
annually to the Residential Energy
Assistance Partnership (REAP) bill
payment assistance program.
New commitments to our
customers coupled with ongoing
energy efficiency efforts under the
Save for Tomorrow Energy Plan (STEP)
are creating time, energy and bill
savings. More than 17,000 customers
took advantage of rebates through
a robust program that incentivized
customers to replace energy inefficient
refrigerators, air conditioning units,
and emissions-blowing mowers, while
adding solar panels, tree canopy,
and attic insulation. In 2014,
customers reduced energy use by
138 megawatts (MW) through STEP.
Our customers play a strong role in
making decisions that will improve our
entire community. And, we believe it’s
important to make their choices easy.
That’s what we’re committed to, and
that’s what we’ll do because
CPS Energy works for you.
THROUGH OUR SAVE FOR
TOMORROW ENERGY
PLAN, CUSTOMERS
REDUCED ENERGY USE
BY 138 MEGAWAT TS .
> > O U R C ASA V E R D E W E AT H E R I Z AT I O N
P R O G R A M H I T A M A J O R M I L E STO N E O F
P R OV I D I N G E N E R GY SAV I N G S TO M O R E T H A N
10,000 CUSTOMERS . < <
O U R A C C O U N T M A N A G E M E N T T E A M W O R KS C L O S E L Y W I T H C O M M E R C I A L C L I E N T S T O H E L P T H E M I N C R E A S E E N E R G Y E F F I C I E N C Y A N D M A N A G E P O W E R U S A G E .
E M P OW E R I N G O U R T E A M
Because much of our future
success depends on maintaining a
skilled and diverse workforce, we have
placed a renewed focus on talent
development, rolling out initiatives
such as EmpowerU, CPS Energy
University, talent development teams
and a job rotation program.
EmpowerU offers a new and
different kind of talent development
opportunity to team members,
who have consistently ranked
opportunities for growth and
development as a top priority. In
spring 2014, EmpowerU attendees
heard from Ed Whitacre, who led
AT&T for 17 years before coming out of
retirement to successfully lead General
Motors out of bankruptcy. He urged the
crowd to take risks, “If you don’t take
risks, you lose,” he said. “If you’re always
in defensive mode, you lose.”
Our team members have the
opportunity to expand their
knowledge and skills by serving
on talent development teams that
include our employees and those from
partnering companies like Rackspace,
OCI Solar Power, Joint Base
San Antonio (JBSA) and H-E-B. These
collaborative teams work on mutually
beneficial projects, allowing members
to learn firsthand about the other
companies’ cultures and processes.
> > O U R T E A M M E M B E R S HAVE
THE OPPORTUNIT Y TO EXPAND
THEIR KNOWLEDGE A N D S K I L L S
BY S E R V I N G ON TA L E N T
D E V E LO P M E N T T E A M S .<<O N E C P S E N E R G Y T A L E N T D E V E L O P M E N T T E A M
P A R T N E R E D W I T H H - E - B T O E X C H A N G E I D E A S A N D P R O C E S S E S .
O U R J B S A T E A M I S W O R K I N G W I T H M I L I T A R Y B A S E S T O I N C R E A S E E N E R G Y C O N S E R V A T I O N A N D I M P L E M E N T R E N E W A B L E E N E R G Y O P T I O N S .
>> ALL INTERNAL TRAINING NOW
FALLS UNDER ONE ORGANIZATION –
C P S E N E R GY U N I V E R S I T Y . < <
Additionally, 70 managers attended a four-day
Leadership Development Program at Our Lady of the
Lake University, and more than a dozen executives
completed the Rice University Jones School of
Business Accelerated Development Program that is
designed to help prepare leaders for the transition to
general management.
In-house training is another vital component
to ensuring our team members’ success. Prior
to realigning in the past couple of years,
multiple training areas co-existed throughout
the Company. Now, all internal training
falls under one organization – CPS Energy
University. The new structure allows for
better integration, and the University has
added more courses to help prepare team
members transition into new areas or
leadership roles. This was especially
advantageous as more than 100
team members were promoted, as
a cascading effect of our Voluntary
Retirement Incentive Program, under
which 280 team members elected
to retire in 2014. Team members
had been requesting a retirement
incentive program, and leadership
listened – taking the time to
carefully plan and execute the
program while maintaining
business continuity and top-
tier performance.
C P S E N E R G Y U N I V E R S I T Y U T I L I Z E S S T A T E - O F - T H E - A R T T R A I N I N G E Q U I P M E N T T O E N H A N C E E M P L O Y E E S ’ T E C H N I C A L S K I L L S .
INVESTING IN TECHNOLOGY & PARTNERSHIPS
Utilities can fight the disruptive
changes facing the energy industry or
continually innovate to stay relevant
and create value out of emerging and
new technologies.
Led by President and CEO Doyle
Beneby, we have embraced the latter
path and are committed to deploying
new technologies to create programs
and partnerships that bring value to
collaborate with companies on new
ways to utilize the grid by supporting
transformational products and
services like micro-grids, big-data
analytics and battery storage.
In 2014, we developed two new
solar programs with the aim of
radically increasing the amount of
solar power in our region. While
San Antonio already ranks seventh in
> > W E ’ V E D E V E L O P E D
T W O N E W S O L A R
P R O G R A M S W I T H T H E
A I M O F R A D I C A L LY
I N C R E A S I N G T H E
AMOUNT OF SOL AR
P OW E R I N O U R
R E G I O N . < <
500J O B S T H U S F A R .
O U R P A R T N E R S H I P S W I T H C L E A N E N E R G Y
C O M P A N I E S H A V E C R E A T E D M O R E T H A N
our customers without risking
our hard-earned and enviable
financial status.
“The world is changing. We are
facing a low-carbon, interconnected
future where innovation will be key,”
Beneby said recently at a gathering of
traditional and new energy companies
in San Antonio.
The companies were invited
to partner with us on a “Grid of
the Future” project, part of our
$290 million Smart Grid Initiative,
launched in 2014 to upgrade our
grid infrastructure with 21st century
communications technology. Once
complete, the smart grid will boost
efficiency and reliability, while
offering customers more control over
the power they consume. We will
C L E A N E N E R G Y P A R T N E R S H I P S , L I K E M I S S I O N S O L A R , H A V E H A D E C O N O M I C B E N E F I T S O F M O R E T H A N $ 8 0 0 M I L L I O N A N N U A L L Y I N O U R C O M M U N I T Y .
the nation for solar power, thanks to
our utility-scale projects, we wanted
to increase access to solar power
for those customers who cannot
afford the still-high upfront costs of
rooftop systems, or who don’t have
qualifying roofs.
Our community solar program will
allow customers to buy a share of a
1-MW site located on land in
our territory. They’ll see a credit on
their bill for the power that share
generates. Our rooftop program will
include installation of solar panels on
residential and non-profit commercial
rooftops – at no cost to them – in
exchange for a “hosting” fee for
the use of the rooftop. Under both
programs, we will partner with
private companies and buy the
output from the panels.
These kinds of partnerships pave
the way to a future where our
customers have increasing choice and
flexibility in the ways they consume
and manage energy, and build on
the existing partnerships that have
contributed to making us an
industry leader.
Our NEE initiative, for example,
continues to reap benefits for our
community. According to the 2014
economic impact report from
Dr. Steve Nivin of St. Mary’s University,
our partnerships with more than a
half dozen clean-energy-related
companies have directly created
more than 500 jobs thus far. Add
indirect and induced jobs, and the
total soars to more than 2,600 jobs.
With the multiplier effect, Nivin found
economic benefits of more than
OUR NEW ENERGY ECONOMY INITIATIVE
HAS CREATED ECONOMIC BENEFITS OF
MORE THAN $800 MILLIONANNUALLY.
$800 million annually.
These impressive and impactful
efforts attract organizations like
Advanced Energy Economy, which
invited our CEO/President onto its
board after co-hosting a private
CEO think tank event with us in June
of 2013, and the federal Advanced
Research Projects Agency-Energy
(ARPA-E) which invited our
CEO/President to speak at its
Energy Innovation Summit earlier this
year, along with the likes of Energy
Secretary Ernest Moniz and
former U.S. Treasury Secretary
Henry Paulson.
While our profile as an innovative
industry leader grows, our primary
focus will always remain on our
customers. That means using
technology and partnering with
innovative and like-minded companies
in an effort to produce safe, affordable
and reliable power.
>> T H E S M A RT G R I D W I L L B O O ST
E F F I C I E N C Y A N D R E L I A B I L I T Y ,
WHILE OFFER ING OUR CUSTOMERS
M O R E C O N T R O L OV E R T H E
P OW E R T H E Y CO N S U M E. <<
C P S E N E R G Y P U T S S M A R T M E T E R S T H R O U G H A R I G O R O U S T E S T I N G P R O C E S S B E F O R E B E I N G I N S T A L L E D .
As members and active participants of
Greater San Antonio’s vibrant community,
our proud and dedicated team members
provide or support a multitude of
critical services.
We focus on contracting with locally
owned businesses when possible to
strengthen our value to our community.
Last year, we awarded nearly
$6.5 million in contracts to veteran-
owned businesses, and for the
past three years, we’ve hosted
the Veteran Symposium & Expo
to help veteran entrepreneurs
connect directly with procurement
organizations and business partners.
Another way we’re ensuring our
community’s needs are met is through
our commitment to the United Way
of San Antonio and Bexar County, and
in 2014 our generous team members
demonstrated a million ways to give.
For the first time ever, employee
and retiree contributions and
fundraising for the annual United Way
campaign surpassed the $1 million
S T R E N G T H E N I N G O U R C O M M U N I T Y
>> FOR THE FIRST
TIME EVER, OUR
ANNUAL UNITED
WAY CAMPAIGN
SURPASSED THE
$1 MILLION
THRESHOLD. <<
threshold. We’re also strengthening
our community and cultivating
tomorrow’s leaders through
educational investments. We reached
a new level of participation in the San
Antonio Youth Literacy Reading Buddy
program, with more than 100 team
C P S E N E R GY E M P LOY E E V O LU N T E E R S C L E A N U P AT T H E R O N A L D M C D O N A L D H O U S E .
O U R T E A M M E M B E R S S U P P O R T T E C H N O L O G Y E D U C A T I O N B Y S E R V I N G A S J U D G E S F O R A L A M O - F I R S T R E G I O N A L R O B O T I C S C O M P E T I T I O N .
I N 2 014 , T E A M M E M B E R S
V O L U N T E E R E D N E A R LY 14,000
HOURS TO A S S I ST L O C A L
C H A R I T I E S A N D N O N - P R O F I T S .
> > > > > > > > > > > > > > > > > > > > > > > > > > >
>>>>>>>>>>>>>>>>>>>>>>>>>>>members helping second graders
improve their reading skills. Our team
members mentor youth at risk of not
graduating, as well as top students
interested in engineering and technical
fields. In 2014, we co-sponsored
the Alamo-FIRST Regional Robotics
Competition, the largest K-12
robotics competition in the United
States. Each year, we partner with
the San Antonio Hispanic Chamber
to sponsor the CORE4 STEM Expo,
to bring greater awareness to and
generate interest in the Science,
Technology, Engineering and Math
(STEM) fields.
Through our high school mentoring
and internships programs, we’ve
awarded nearly $700,000 in
scholarships and encouraged students
to attend college. Because education
is one of our top priorities, we
included an educational investment
component in the agreements we’ve
forged with our NEE partners. From
2011 (when we began our NEE
initiative) to date, these agreements
have culminated in an impressive
$13.3 million commitment from our
partners to local education.
Another way we support our
community is by “lending a hand.”
In 2014, our team members
volunteered nearly 14,000 hours
to assist local charities and non-
profit organizations, and helped
with community projects like the
Salvation Army Angel Tree Program
and Communities in Schools Stuff the
Bus school supply drive, as well as our
own Kids’ Fish event benefitting the
youth at Boysville. > > O U R N E W E N E R G Y
E C O N O MY PA R T N E R S H AV E
C O M M I T T E D $13 . 3 M I L L I O N
T O L O C A L E D U C A T I O N . <<
W E H A D M O R E T H A N 10 0 E M P L O Y E E S H E L P I N G S E C O N D G R A D E R S I M P R O V E T H E I R R E A D I N G S K I L L S .
WE’VE AWARDED NEARLY
$700,000IN SCHOLARSHIPS.
Solar panels produced in San Antonio
now bring renewable power to local
homes and businesses. The increasing
number of solar farms in and around our
area, combined with the development of
the partnerships and resources to create
the elements of each farm, demonstrate
our commitment to provide our
customers with affordable
clean energy.
In September, Mission Solar
Energy LLC opened the doors to
the only solar cell and module
manufacturing facility in Texas. Today,
nearly 300 employees build solar
panels at the new plant. It is the
first and only company in America to
commercially manufacture N-type
solar panels, an advanced technology
that produces electricity more
efficiently than conventional modules.
These modules, paired with new dual-
axis sun tracker technology, are part
of a 5.5-MW solar farm that is the
latest addition to a growing fleet of
renewable energy projects.
B U I L D I N G O U R C O M M I T M E N T T O C L E A N E N E R GY
>> CPS ENERGY
HAS 134 MW
OF SOLAR
GENERATION
CAPACITY –
THE MOST
IN TEXAS. <<
500MW
B y 2 0 1 7 ,
c o m m e r c i a l a n d
r e s i d e n t i a l a r r a y s
i n a n d a r o u n d
S a n A n t o n i o w i l l
t o t a l n e a r l y
o f r e n e w a b l e e n e r g y .
A L A M O 3 S O L A R F A R M
M I S S I O N S O L A R E N E R G Y
generation fleet – tops nationally
among municipal utilities.
In 2014, we also added a second
methane-gas-to-electricity plant
that turns decomposing landfill waste
into clean energy.
Demand response, or the voluntary
curtailment of energy use during
periods of high energy demand,
has become a popular energy
conservation tool for our customers.
In 2014, more than 110,000
customers conserved electricity
through the use of CPS Energy-
sponsored programmable thermostats
and energy management systems
in their homes. Businesses,
including schools, hotels, hospitals
and manufacturing facilities,
either enrolled or expanded their
participation, accounting for more
than 83 MW of savings – enough to
power at least 21,000 homes.
Thanks to commercial and industrial
demand response initiatives, nearly
2 million pounds of carbon were
curtailed in 2014. Today, 54 percent
of our generation comes from low- or
non-carbon-emitting energy sources.
In addition to renewables, energy
efficiency and demand response, we
continue to focus on low-carbon
fuels like natural gas – increasing gas
generation by 17 percent in 2014 –
to meet more of our base-generation
needs and reach our target of
65 percent low- or non-carbon-
emitting resources by 2020. When
the Environmental Protection Agency
(EPA) proposed its Clean Power
Plan last June, we were already
on an aggressive path to diversify
our generation fleet to low-carbon
generation resources. We believe
these efforts will help the state
of Texas meet emission reduction
targets that are likely to be mandated
in the future by the EPA.
N E A R LY 2 MILLION
P OUNDS O F C A R B O N
WAS C U RTA I L E D T H R O U G H
CO M M E R C I A L A N D I N D U ST R I A L
D E M A N D R E S P O N S E I N I T I AT I V E S .
Through power purchase
agreements with a number of
solar farm operators, we now have
134 MW of solar generation
capacity – the most in Texas. More
than 300 MW of utility scale sun
power are still in development. By
2017, our commercial and residential
arrays in the San Antonio area and
around Texas will total nearly
500 MW of renewable energy capacity.
Renewable power is integral to
providing more environmentally
friendly generation alternatives to
our customers. In addition to solar,
we are purchasing power from more
than 1,000 MW of wind generation
capacity that complements our
O U R C O M M I T M E N T T O T H E E N V I R O N M E N T W A S R E C O G N I Z E D W I T H A 2 014 N O R T H A M E R I C A N G R E E N F L E E T A W A R D .
54P E R C E N TO F O U R G E N E R AT I O N
CO M E S F R O M LOW -
O R N O N - C A R B O N -
E M I T T I N G S O U R C E S .
F O R T H E F I S C A L
Y E A R E N D E D
J A N U A RY 31,2015,
W E M A D E
PAY M E N T S TO
T H E C I T Y O F
SAN ANTONIO OF
$336M I L L I O N .
BUILDING ON OUR FINANCIALSTRENGTH
Because of our financial integrity
and fiscal responsibility, our customers
continue to benefit from the lowest
electric and natural gas rates among
the 10 largest cities across
the country.
In 2014, we were pleased to
announce the elimination of a base
rate increase request that had been
projected to take effect in February
2016. Several factors allowed us
to eliminate the proposed base rate
increase, including lower debt costs,
stronger than expected electric
sales, and operational and process
improvements being implemented
across the entire Company.
Additionally, we carried out several
prudent financial transactions during
the fiscal year. In July 2014, we issued
$200 million of junior lien bonds to
fund capital projects to strengthen our
strength. We continue to maintain
solid credit ratings on our senior lien
bonds from all three major credit
ratings agencies: AA+ by Fitch Ratings,
Aa1 by Moody’s Investors Service,
and AA by Standard & Poor’s
Ratings Services.
In February 2014, we executed
an agreement with Exelon and
other parties that resulted in the
termination of the 2001 lease/
leaseback arrangement related to
our Spruce Unit 1 power plant. This
growing system. In November 2014,
we issued $262.5 million of 2014
junior lien refunding bonds, proceeds
from which were combined with the
$37.3 million premium associated
with the new bonds and used to
refund the $294.6 million par value
of senior lien bonds issued in 2005.
This refunding resulted in a net
present value debt service savings of
$36 million, to be realized over the
next six years. In December 2014,
we remarketed $47.1 million of the
2012A junior lien variable-rate bonds,
which reduced outstanding debt
by approximately $1 million. And in
January 2015, we issued a total of
$250 million in junior lien refunding
bonds and used the proceeds to
refund $250 million of the 2003
junior lien variable-rate bonds, which
eliminated a requirement for third-
party liquidity support.
The successful execution of these
transactions was attributed primarily
to our high credit ratings and financial
D O W N T O W N S A N A N T O N I O
termination transaction resulted in a
net non-cash gain of approximately
$43 million that was reported as a
special item on our Statements of
Revenues, Expenses and Changes in
Net Position.
For the fiscal year ended January 31,
2015, we made payments to the
City of San Antonio, of $336 million.
This practice carries on our long-
standing commitment of making this
important payment to the City of
San Antonio.
EXECUTIVELEADERSHIP TEAM
Left to Right:
Jelynne LeBlanc BurleyGroup Executive Vice President &
Chief Delivery Officer
Cris EugsterGroup Executive Vice President &
Chief Generation & Strategy Officer
Doyle N. BenebyPresident & Chief Executive Officer
Paula Gold-WilliamsGroup Executive Vice President -
Financial & Administrative
Services, Chief Financial
Officer & Treasurer
Carolyn ShellmanGroup Executive Vice
President & General
Counsel
B O A R D O F T R U S T E E S
CITIZENS ADVISORY COMMIT TEE
Katrina Glavan-HeiseChair & Member at Large
Corina Castillo-JohnsonVice Chair & District 10 Representative
Kyle LindseyMember at Large
Michael MoczygembaMember at Large
Pilar PinillaMember at Large
Klaus WeiswurmMember at Large
Esther De LeonDistrict 1 Representative
William B. JohnsonDistrict 2 Representative
Lulu AvituaDistrict 3 Representative
George Britton Jr.District 4 Representative
Andy CastilloDistrict 5 Representative
Alvaro RodriguezDistrict 6 Representative
Roger PlasseDistrict 7 Representative
Robert RomeoDistrict 8 Representative
Ram KhattiDistrict 9 Representative
Nora ChávezBoard Chair
Not Pictured: Mayor Ivy Taylor Mayor & Ex-Officio Member
Edward KelleyVice Chair
Derrick HowardTrustee
Dr. Homer GuevaraTrustee
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R E P O RT O F M A N AG E M E N T
F I N A N C I A L S T A T E M E N T S A V A I L A B L E O N L I N E A T :C P S E N E R G Y . C O M
-Doyle N. Beneby
President & Chief Executive Officer
-Paula Gold-Williams
Group Executive Vice President - Financial &
Administrative Services, Chief Financial Officer &
Treasurer
April 22, 2015
F I N A N C I A L S
he FY 2015 financial audit
was successful. Based on
procedures they conducted,
our external auditors, Baker
Tilly Virchow Krause, LLP; Garza,
Preis & Co., L.L.C.; and Robert J.
Williams, CPA, issued an unmodified
opinion indicating that our financial
statements were found to be free of
reporting deficiencies.
The audited basic financial
statements were prepared by our
Management Team in conformity with
accounting principles generally accepted
in the United States of America, and
the statements are presented fairly
in all material respects. We have also
prepared other financial information
presented in the annual report and
have ensured that it is consistent
with information in the audited
financial statements.
Our Management Team maintains
accounting, financial reporting and
administrative internal controls designed
to provide reasonable assurance that
the financial information is relevant,
reliable, and accurate and that assets
are appropriately accounted for and
adequately safeguarded. These controls
are supported by formal policies and
procedures readily communicated
throughout our Company. Additionally,
CPS Energy has an internal audit
function that assists in evaluating the
adequacy and effectiveness of the
control environment.
CPS Energy’s independent Board of
Trustees is responsible for reviewing
and accepting both the audited
financial statements and Management’s
Discussion and Analysis (MD&A). The
Board of Trustees, primarily through
two of their members who comprise
the Audit Committee, ensures
our Management Team fulfills our
responsibilities for financial reporting.
The Board of Trustees also approves the
engagement or reappointment of the
external auditors.
The Audit Committee meets
regularly with our Management Team,
and with the internal and external
auditors, to discuss internal control and
financial reporting issues and to ensure
each party is properly discharging its
responsibilities. The Audit Committee
reviews the audited financial statements
and the external auditors’ report and
considers the statements for review and
acceptance by all members of the Board.
CPS Energy’s external auditors
have audited the financial statements
in accordance with auditing standards
generally accepted in the United States
of America. They performed procedures
to obtain audit evidence deemed
sufficient and appropriate to provide a
basis for their opinion on the fairness
of the audited financial statements.
In support of the external auditors’
procedures, our Management Team
provided them full and free access to our
accounting records.
T H R E E - Y E A R H I G H L I G H T S // U N A U D I T E D
APPLICATION OF REVENUEF I S C A L Y E A R E N D E D J A N U A R Y 3 1
o p e r at i o n & m a i n t e n a n c e
d e bt r e q u i r e m e n ts & o t h e r i n t e r e st
c i t y paym e n t
r e pa i r a n d r e p l a c e m e n t a cc o u n t
2015 2014 2013
TOTAL REVENUE F I S C A L Y E A R E N D E D J A N U A R Y 3 1
( I N B I L L I O N S )
e l e c t r i c g as n o n o p e r at i n g
$2.7
2015 2014 2013
$2.5$2.3
2.4 2.2 2.0
0.2 0.2 0.20.1 0.1 0.1
60%63% 61%
15%15% 18%
12%12% 13%
13% 10% 8%
T H R E E - Y E A R H I G H L I G H T S // U N A U D I T E D
NEW CONSTRUCTION EXPENDITURESF I S C A L Y E A R E N D E D J A N U A R Y 3 1
( I N M I L L I O N S )
n u c l e a r
g e n e r at i o n & st r at e gy
c o a l
t r a n s m i s s i o n & d i st r i b u t i o n
p u r c h as e d p ow e r - r e n e wa b l e s p u r c h as e d p ow e r - o t h e r
g as
a l l o t h e r
$532
148
286
98
$437
281
40
$859
546
269
44
116
2015
2015
2014
2014
2013
2013
ELECTRIC GENERATION & OTHER POWERF I S C A L Y E A R E N D E D J A N U A R Y 3 1
25%
42%
19%
11%
24%
41%
18%
11%
3%
25%
43%
20%
9%3%6%
Includes the acquisition of the Rio Nogales combined-cycle natural gas electric generating plant.
T H R E E - Y E A R H I G H L I G H T S // U N A U D I T E D
ELECTRIC SALES
GAS SALES
F I S C A L Y E A R E N D E D J A N U A R Y 3 1
F I S C A L Y E A R E N D E D J A N U A R Y 3 1
( I N M I L L I O N M W H )
( I N M I L L I O N M C F )
31.929.3 28.7
9.5
9.3 9.2
12.2
25.7
11.7
14.0
10.8
25.4
14.6
21.4
8.6
12.8
12.3 12.2
10.2 7.7 7.3
2015
2015
2014
2014
2013
2013
r e s i d e n t i a l c o m m e r c i a l & o t h e r w h o l e s a l e
r e s i d e n t i a l c o m m e r c i a l & o t h e r
COMPARISON OF RESIDENTIAL ELECTRIC
AND GAS BILLS FOR THE 10 LARGEST
U.S. CITIES 1 // F Y 2 014 - 2 015
CPS Energy is the nation’s largest municipally owned natural gas and electric company, providing service to
772,000 electric and 337,000 natural gas customers in the Greater San Antonio area. With our AA+ credit
rating, one of the best in the industry, we offer best in class reliability and the lowest rates among the top 10
largest U.S. cities. We recognize our role as a community partner and are continuously focused on job creation,
economic development and educational investment. Powered by our people, our investment in the community is
demonstrated through our team members’ generosity in giving $1 million to United Way. We are also committed
to investing in clean energy. CPS Energy is the number one wind energy buyer among the nation’s municipally
owned utilities and number one in Texas for solar generation. For more information, visit cpsenergy.com .
about cps energy
2
2
Monthly average for 12 months ended January 2015 based on 1,000 kWh and 5 mcf.
The e lec tr ic amounts used for Dal las and Houston are an average of a l l res ident ia l e lec tr ic providers in the ir area.
1
2
D E S I G N B Y C P S E N E R G Y C O R P O R A T E C O M M U N I C A T I O N S
P H O T O G R A P H Y B Y L O U I E P R E C I A D O
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