Austin Energy Budget

Austin Energy is the largest City of Austin department. Annually, revenues exceed $800 million. Annual operating and maintenance expenses total more than $430 million. That includes about $200 million for fuel to generate electricity at Austin Energy power plants.

Building a Competitive Utility
In 1999, Austin Energy began increasing investments in its system budgeting. Capital improvements have grown more than $100 million annually.

While maintaining competitive rates, the Utility also transfers about $73 million each year to the City’s General Fund. This transfer helps fund City services including fire, police, parks and libraries.

The utility maintains a Competitive Strategy fund. Reserves in this fund total more than $170 million. This money is available for emergencies or for needs that improve the Utility’s competitive position.

Deregulation in Texas
Currently none of the 73 city-owned electric utilities in Texas are participating in retail deregulation. Only two of 75 electric cooperatives are participating.

However, Austin Energy has adopted a competitive strategy designed to keep rates low:

	Reduce operating costs
	Pay down debt
	Pay cash for new generation.

Austin Energy’s Fiscal Year
Like all City departments, the fiscal year for Austin Energy’s budget begins on October 1 and ends September 30. The Austin City Council sets Austin Energy’s budget and electric rates.