January 9 , 2003 News Media Release

No Fuel Charge Increase For Electric Bills

Austin Energy will not increase its fuel charge for 2003. Unless there are unforeseen events related to natural gas prices, demand or deregulation -- a review indicates the fuel charge in place is currently adequate. This means Austin Energy customers will see no increase in their electric bill during 2003 unless they increase their energy use.

The fuel charge on the customer’s electric bill recovers the cost of fuel dollar-for-dollar. Austin Energy includes no profit in this charge.

The other charge on electric utility bills is the base electric charge. Austin Energy’s base electric rates have not increased in 8 years.

AE’s fuel charge is among the lowest for large cities in Texas. And, while AE’s fuel charge remained unchanged during 2002, large investor-owned electric utilities participating in deregulation implemented fuel charge increases. Reliant Energy implemented one increase earlier in 2002 and recently received approval for another. Fuel charge increases approved by the Texas Public Utility Commission for IOU Retail Electric Providers during 2002:

Austin Energy’s fuel charge is considerably lower than the fuel charge of any of the utilities listed above. Austin Energy reviews its fuel charge each December.

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For more information, contact Ed Clark, Public Information.
Phone: (512) 322-6514
Pager: (512) 802-2000