Urge Austin City Council to Reject 80% Electric Rate Increase for Worship Facilities

Contact Mayor Leffingwell and City Council

Austin Energy is proposing its first rate structure revision in 17 years. If Austin Energy’s proposed new rate structure is implemented in its current form, many Austin congregations will experience a doubling of their electric bills over the next three years. While the exact increase will vary for each congregation, worship facilities as a group would experience an average increase of 80%, far greater than the planned increases for most of Austin Energy’s other customer classes.

Houses of worship make up a tiny fraction of Austin Energy’s customer base: Altogether, their 621 congregations account for roughly $5 million—just 1/2 of 1% of Austin Energy’s $1.03 billion in annual revenue. Clearly, everyone needs to bear some share of the burden for rising energy costs—but an 80% increase in rates on one small customer class is an unacceptable burden.

There are options available to the utility that would prevent the disproportionate burdening of the faith community. Minimal changes to the rate design would give individual congregations flexibility to choose their rate class. Alternatively, the utility could scale back its economic development spending or reduce its extremely generous reserve requirements, either of which would permit a reduction in rate increases—not only for worship facilities but across every class of customer.

Because Austin Energy is a municipally owned utility, the Austin City Council must approve any changes to the utility’s rate structure. Austin Energy staff members have stated that it is the role of the City Council to mediate “community conflicts” such as disproportionate impacts on worship facilities, and they have encouraged us to take our concerns directly to City Council. City Council is expected to make final decisions about the proposed rate structure very early in 2012. The Council could approve the proposed structure; approve it with modifications; or reject it and send Austin Energy back to the drawing board.

For more information, contact Joshua Houston at 512-472-3903 or josh@texasimpact.org