AUSTIN, Texas — Electricity prices in Austin are about to rise.
In a memo sent to the Mayor and Austin City Council, Austin Energy said they will implement a 5% rate increase as part of the Power Supply Adjustment (PSA) for all customers.
For the average household, the rate increase amounts to about a $2 price increase per month.
According to Austin Energy, the move comes as a means of assisting the energy provider reimburse ERCOT for materials the company had to purchase to deal with higher electricity demand during the summer months.
"The increase is required to continue making progress on recovering power supply costs in order to position Austin Energy for an anticipated PSA under-recovery during the summer months," the company said in the memo.
The company implemented a similar rate hike on Dec. 1. Company policy only allows rate hikes of up to 5% at any given time.