AUSTIN, Texas — Rates are going down for Austin Energy users.
According to the utility provider, rates are set to decrease 5% at the beginning of October. That adds up to savings around $2 per month.
Austin Energy General Manager Bob Kahn said the decrease is due to a more moderate summer overhaul and the full recovery of the rate's under-recovered balance.
In a memo to the mayor and council members, Kahn said while August power costs were significant and higher than July, rates were sufficient to recover those high load-zone costs. He said overall ERCOT market prices and congestion costs this summer have been “more moderate” than Austin Energy has experienced in the past two years.
“However, long-term market trends remain, as overall wholesale power market prices continue to see increased risk, upward pressure and unique challenges within the Austin Energy load zone,” Kahn said.
Power supply costs are also affected by transmission congestion, renewable generation limitations and a lack of sufficient power generation capacity. Kahn said Austin Energy must look at historical PSA results and also plan ahead for "the seasonality of costs."
“Market prices in recent years have generally been significant in September, and Austin Energy has typically under-recovered costs in that period,” Kahn said. “As such, Austin Energy will continue to closely monitor recovery balances and assess the PSA rate for potential additional decreases, which will depend largely on the results from a typically volatile September market.”