Stakeholder fury pushes Austin Energy to change rate structure.
for electric service from $10 to $25 per month, and a restructuring of thethat AE charges as a conservation strategy. The longstanding system, which currently has five tiers, charges people who use more electricity a higher price per kilowatt-hour . The utility wants to compress it into three tiers.
The last time AE changed its base rate was in 2017, when it decreased by 6.7%. Notably, in 2020, AE customers' average monthly bill was the second-lowest in Texas. But AE has been hurting financially, with $90 million net losses in fiscal years 2020 and 2021. Its original proposal would have raised overall rates by 7.6%, for a total revenue increase of $48.2 million, which would close that budget gap. But, during ain July, AE lowered their desired total revenue to $35 million.
Austin Energy's chart shows that their base rate no longer covers the expense of providing service. AE's critics say proposed changes will hurt poorer customers and discourage conservation., on behalf of the Sierra Club, Public Citizen, and Solar United Neighbors, testified that the changes would"harm customers in the name of revenue predictability" and"be manifestly unfair to those with lower monthly energy usage.
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