Austin Energy’s rate increase proposal begins with an outrageous $25 in fixed monthly charges for residential ratepayers. That’s $25 before you even flip the first light switch! Customers who use the smallest amount of electricity, 300 kWh, would see a whopping 60% rate increase. This policy goes against Austin’s proud legacy of encouraging conservation and keeping energy affordable for those least able to pay. We believe that Austin Energy’s proposal is upside down and backwards:
The following groups and individuals are working together to oppose the AE rate proposal:
Public Citizen Texas
Texas ROSE
Austin Tenants Council
Texas Legal Services Center
Sierra Club
Gray Panthers of Texas
Bill Oakey, Consumer Advocate
Paul Robbins, Energy Activist
The City Council will begin holding public hearings on electric rates after the first of the year. Please ask your friends and neighbors to help, by subscribing to our blog, “Affordable Energy for Austin,” and visiting our “Affordable Energy for Austin” Facebook page. Or contact Bill Oakey at .
The high fixed charges are just the tip of the iceberg. Here’s what we are asking the City Council to fix:
| Austin Energy’s Proposal | Affordable and Fair Proposal |
| $25 in fixed monthly charges | Eliminate the new $15 “delivery charge.”Reduce the proposed $10 customer charge. |
| A new rate design that imposes the biggest financial burden on those who can least afford it and those who use the least electricity, which discourages energy conservation. | Keep a rate design that follows Austin’s legacy that encourages energy conservation and conforms to the City’s own “Resource Generation and Climate Protection Plan.” |
| Change existing “cost of service” model to the “AED” model, which severely over-charges residences and small businesses. | Use the “BIP” model, which is fair and accurate and eliminates corporate welfare to large industrial customers. |
| An overstated revenue requirement totaling a $100 million a year or more. | Reduce revenue requirement by at least 50% |