AUSTIN, Texas — Austin Energy is considering an increase in rates as customers are reportedly using less energy, according to a report by Community Impact.
The lower energy usage is causing a budget shortfall, leading the utility company to consider the increase to meet the base revenue. The report states that Austin Energy needs a $48 million base revenue increase due to revenue not keeping up with the current cost.
The base rate is the coverage of the cost to own and operate the system, per the report.
Austin Energy's base rate was last changed in 2017. The new proposal suggests raising rates by 7.6%, as base rate costs have been on the rise since 2018 and then outpaced revenue starting in 2020.
Austin Energy's vice president of finance said efficient energy use by customers combined with the rate design not keeping up with the efficiency is leading to the discrepancy between the cost and revenue.
The proposal would raise monthly rates by more than $15 for the average homeowner, the report stated. However, that increase could be lower or not increased at all if the Austin City Council counteracts.
To raise the base revenue, the energy provider presents a proposal to the City Council, which the council then votes on. That proposal could be presented in late October and, if approved, would take effect in 2023.
Read the full report by Community Impact here.
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