| Press Release Archive
Austin Energy customers to see
electric bills decline
Austin Energy will decrease its system fuel
recovery charge from 2.669 to 1.765 cents per kilowatt-hour
(kWh) effective January 1, 2002.
The decrease represents a 33% drop in the
fuel charge and is expected to remain in effect for all of
calendar year 2002. The fuel charge is a dollar-for-dollar
pass through to customers. The utility makes no profit on
fuel costs recovery.
The fuel charge is one of two charges that
make up an electric bill. The other charge — base electric
rates that cover power plants and operating expenses —
has remained unchanged since 1994.
The drop in the fuel charge means that a
customer using 1,000 kWh per month (system average for residential
customers) will see their total electric bill drop by about
11% beginning with electricity used in January.
The fuel charge for residential customers
will be 1.774 cents per kWh and 1.721 for commercial customers.
The difference between the two fuel charges is attributable
to the line loses associated with shipping power through the
vast network of power lines feeding residences versus the
larger, more direct lines often feeding large industries.
More power and therefore fuel, is required to get power to
residential customers.
Austin Energy's fuel charge has consistently
ranked among the lowest for large utilities in Texas. AE's
1.774 fuel charge for residential customers compares to 2.76
cents per kWh charged by Central Power and Light (Corpus),
2.53 cents charged by Reliant (Houston) and 2.48 cents charged
by Texas Utilities (Dallas).
This decrease in the fuel charge is due
to a normalization of natural gas prices. Last December natural
gas prices averaged $8.67 per million BTUs (MMBTU). This December
natural gas prices are averaging $2.45 per MMBTU.
For more information, contact Ed
Clark, Public Information.
Phone: (512) 322-6514
Pager: (512) 802-2000
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