After months of debate, the Austin City Council officially approved new base electric rates last week that will help Austin Energy close a significant base revenue deficit.
According to a release from the City of Austin, with a $13 monthly customer charge, a typical residential user living inside the City of Austin who uses 860 kWh per month will see an increase of $8.87 to their electric bill beginning in March 2023. This represents a 5% percent overall base rate increase, the city said, though actual bill impacts will vary depending on customer class and usage.
“We know any rate increase affects our customers, who are dealing with rising costs just like our utility,” said Jackie Sargent, Austin Energy’s general manager. “With the new base rates, residential customers will continue to see some of the lowest bills in the state while paying closer to the cost of service. I appreciate City Council recognizing the need to protect customers from rate shock while improving the utility’s financial position to continue to meet our community’s needs and priorities in the long term. We believe this balanced approach will help our customers and our utility’s long-term financial health.”
