August 24, 2009
Summer Utility Bill Assistance Available

Due to the extreme summer temperatures, the City of Austin is offering a one-time, six-month-term Deferred Payment Arrangement option to assist customers having difficulties paying their summer utility bills. Generally utility payment plans are limited to four-month terms.

“July was the hottest month on record and it appears we will break the all-time record in Austin for the total number of days over 100 degrees,” said Austin Mayor Lee Leffingwell. “The extreme heat coupled with the downturn in the economy requires additional consideration for citizens facing financial difficulties.”

Customers who wish to request a six-month payment plan should contact the City of Austin before Oct. 1, 2009. Under this payment arrangement, customers will pay 25 percent of the total account balance as a down payment within seven calendar days of making the Deferred Payment Arrangement, with the remaining balance spread across six equal installments.

The installment payments must be made in addition to payment of current bill charges each month. City of Austin utility customers who remain current on their DPA installments and monthly usage charges will not be subject to disconnection.

“Increased awareness of this new six-month DPA option, as well as other AE customer assistance programs, will help citizens who are struggling to pay their high summer bills,” said Austin City Council Member Chris Riley. “Austin Energy has done a great job of working with Council staff and concerned citizens to make necessary changes in response to Austin’s record high temperatures.”

The exceptional heat has resulted in significant increases in residential electric use due to air conditioning. With temperatures peaking at or above 100 degrees (especially for multiple days in a row) air conditioners will still run eight hours or more a day – even with thermostats set at 79 or 80. And for those keeping their house cool in 100 degree-plus temperatures, the average air conditioner has been running up to 15-17 hours out of 24 on average.

The result is much higher summer electric bills. For instance, single family homes in Austin (excluding apartments) on average used about 887 kilowatt-hours (kWh) of electricity during both March and April of this year. June average usage jumped to 1,927 kWh and in July hit a record 2,157 kWh average. The utility bill translation of those jumps goes from a March and April average electric bill of about $88 to a June bill of $203 on average and a July bill of $235—virtually a tripling of electric bills from spring to summer due almost totally to air conditioning.

Council Member Laura Morrison added, “This is also a perfect time for qualified home owners and renters to apply for Austin Energy’s free energy efficiency improvements programs. These programs can help customers reduce their monthly energy consumption, which will result in lower utility bills.”

Customer Assistance Discount Program

The City of Austin Customer Assistance Discount Program provides utility bill discounts that can total $44.90 a month for a residential customer using a monthly average of 1,000 kilowatt-hours. The program is available to customers already receiving benefits through programs such as Medicaid, State-paid Medicare, Supplemental Security Income, Travis County energy assistance programs or Travis County or City of Austin medical assistance programs.

Customer Assistance (PLUS 1) Financial Support Program

Emergency utility bill assistance, or Plus 1, is available to help pay utility bills of customers facing extraordinary situations such as loss of job or medical problems. The funding is distributed through some 15 community assistance groups such as Travis County Family Support Services. The City of Austin provides about $300,000 a year in funding and Austin utility customers provide about $45,000 in additional funding.

“Austin citizens have been generous throughout the years in assisting those less fortunate and we appreciate their participation very much,” said Austin Energy General Manager Roger Duncan. “Those who would like to provide funding assistance can simply add a contribution to any utility bill payment and indicate the contribution on their payment statement.”

Free Energy Efficiency Improvements

Austin Energy provides free efficiency improvements to qualified customers who own a home, or to those who rent if they have lived in the rented house at least three months. Efficiency improvements include additional attic insulation, duct sealing, solar screens and more. The program will also make limited repairs on homes so that energy efficiency improvements will be effective. This might include installing new entry doors and window repair.

Levelized Billing Can Also Help

This program lets you pay the same electric bill amount each month throughout the year to avoid a large jump during summer months. It works like this: your energy use over the previous 12 months is added up and divided by 12. Any projected increase in the fuel charge for the coming year is factored in and you get a set electric bill amount to pay each month. If your energy usage exceeds your set payments, the overage is simply factored into the average for the next year, which means you get 12 months to pay it off. Customers can drop out of the program at any time.

Customers should call 494-9400 or visit www.austinenergy.com for information or application forms on the utility assistance programs outlined above.