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Price Issues for CPS

By November 6, 2009

City Public Service (CPS) seems to have some price issues lately, and for once it's not just the price you see on your bill. Actually, this could be worse than that and could significantly affect your bills in the future.

According to the San Antonio Business Journal, the original cost estimate for two nuclear reactors that the municipally-owned power company was set to build has gone up-- by a lot. And now an investigation will have to be done.

The original cost estimate from the Toshiba Corporation was $13 billion, which is already a hefty price tag. But now, the estimate has jumped by an additional $4 billion-- not exacty chump change.

So now, CPS is faced with figuring out just why the cost estimate went up over 20%. Two employees have been placed on administrative leave over the debacle, and a trip to Japan by CPS officials is planned to meet with Toshiba about the increase. What happens as a result of this trip and investigation is anyone's guess, but it will be interesting to see how this all plays out.


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