AUSTIN (KXAN) — Austin Energy made the first step in proposing new rates Monday. In its presentation to the city council’s Austin Energy Utility Oversight Committee, the utility laid out its plans for its new rates, expected to go into effect Fall 2016.
Following Austin Energy’s last rate review in 2012, the city council required that rates be reviewed every five years, the utility said in a statement posted on its website. Before the 2012 review, base rates had not been adjusted for 18 years. As a result, the utility says its finances were “growing unstable.” The 2016 rate review will take into consideration the utility’s increased financial stability.
The utility will reduce revenue by $17.4 million through the proposed rates, a 2.8 percent base rate decrease. Tier 1 customers will see an increase, but reductions in Tiers 4 and 5 may reduce total cost, they say.
Austin Energy would also like to spread out how much customers pay over a 12-month period, rather than having sharp increases during the Summer.
You can share your opinion with Austin Energy on the proposed rate changes on their website. You can see the proposed rate changes here:
On Jan. 1, KXAN reported that an audit found that Austin Energy missed an opportunity to help hundreds lower their utility bills. Around 200 low-income customers never got the help they needed, the audit showed.