Concern about Austin Energy's Proposed Rate Design

On October 25, Texas Impact joined other concerned organizations in a press conference to voice strong concerns about Austin Energy's proposed new rate design. After 17 years, Austin Energy is due for rate modernization. However, Texas Impact believes that a 80% increase on Austin area houses of worship would be a disproportionate burden and that attention to the needs of disadvantaged ratepayers has been inadequate. 

As a customer class under the new rate design, the faith community would experience a 80% average rate increase for their worship facilities. When compared to other customer classes, this is twice the residential increase of 22% and of other small commercial customers at 21%. The medium size commercial customer increase is only 8%, and the large commercial is only 5%. Non-profits exist to serve the community and would face difficult challenges in trying to absorb such increased costs. Additionally, worship facilities consume energy generally on nights and weekends, when electricity is cheaper and stress is low on the grid, but these factors have not been considered adequately in the proposed plan.

For disadvantaged ratepayers, the proposal covers only half of the need for immediate bill assistance, and is silent on whether low and moderate income households will be in Austin Energy's energy-efficiency plans.  Texas Impact believes that the Customer Assistance Program (CAP) should be funded and structured to cover more households than is currently envisioned. As is, the proposed funding would cover only about half of the expected need. The proposal looks to cover about 25,000 customers, but with 1 in 5 people in Austin living below federal poverty, there are at least 50,000 customers in need. Low-income households also need a more permanent solution to reduce energy consumption. The proposed line item for energy efficiency is projected to raise about $28 million. We believe that a percentage of that funding should be dedicated to energy efficiency for low & moderate-income homes to help permanently lower their bills and provide equitable benefits to those ratepayers from the clean energy economy. 

One of the potential strengths of a community-owned utility is the opportunity it has to serve and strengthen the community. Texas Impact calls on Austin Energy and Austin's City Council to make the needs of disadvantaged Austinites--and the community-based organizations that serve them--meaningful priorities in the new rate structure.

Do you agree? Let Austin leaders know! Contact information for Austin City Council members and Mayor Leffingwell can be found here.