| Press Release Archive
Austin Energy To Increase Fuel Charge
Press Release Archive
This increase will allow Austin Energy to
recover natural gas costs already incurred and paid for but
not yet collected from customers, as well as attempt to stay
even with fuel costs in the future. Austin Energy recovers
the cost of fuel from customers on a dollar-for-dollar basis
with no markup or profit added. This increase is consistent
with recent actions of other utilities in Texas and the nation.
An Austin Energy residential customer using 1,000 kWh per
month would see their monthly electric bill increase by $4.71
as a result of the change.
Austin Energy has reduced the impact of
escalating natural gas prices by switching the Decker Power
Plant from natural gas to low-sulfur fuel oil beginning this
past December. To date, this has resulted in over $2-million
in fuel savings for our customers with projected savings by
winter’s end of $3-million to $4-million. In addition,
AE’s power mix during an average year comes from about
a third each of coal, nuclear and natural gas. For these reasons
even after this increase, AE’s fuel charge is still
among the lowest in the state.
Natural gas prices have increased from an
average of $2.39 per MMBtu in December 1999 to $8.69 on average
in December 2000 per MMBtu--with prices as high as $10.00
per MMBtu at times. Again, this represents an increase in
natural gas prices of almost 400%.
Austin Energy’s base electric rates
have not increased since 1994. The fuel charge is a separate
component of each power bill that recovers only the cost of
the actual fuel used to generate the electricity used by the
customer.
For more information, contact Ed
Clark, Public Information.
Phone: (512) 322-6514
Pager: (512) 802-2000
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