December 31, 2009
No Increase in Electric Rates

Austin Energy electric rates will remain unchanged this year. Base electric rates have not been increased since 1994. There will also be no increase in the fuel charge. Austin Energy electric rates are among the lowest of large Texas cities. In addition, the average residential electric bill is among the lowest in the state due to our comprehensive energy efficiency programs.

The Austin Energy electric bill contains three charges: an Energy Charge, a Fuel Charge and a Customer Service Charge.

The Energy Charge on your electric bill pays for Austin Energy operations including all personnel, the cost of power plants and their operations (except for fuel) and all costs associated with building and maintaining the Austin Energy electric system. Austin Energy base rates have not been increased for 16 years in a row.

Austin Energy Residential Base Rates (Energy Charge)
First 500 kilowatt-hours (kWh) of electricity used each month:
3.55 cents per kilowatt-hour (kWh)

All use above 500 kWh per month:
6.02 cents per kWh during winter months (Oct-Mar)
7.82 cents per kWh during summer months (Apr-Sep)

Electric utilities located in warm areas of the nation have summer and winter rates. Summer rates are higher due to the additional generation needed to meet summertime air conditioning loads. In addition, the significant demand increase during summer months requires additional equipment and sizing of the electric delivery system. 

The Fuel Charge recovers the cost of fuels needed to generate the electricity used by Austin Energy customers; the cost of power purchased by Austin Energy from other generators in the state; and Austin’s share of fees to support the state electric grid operator, the Electric Reliability Council of Texas (ERCOT). There is no profit added to the fuel charge. It is a dollar-for-dollar recovery of actual costs. The fuel charge will not be increased for 2010 barring any unforeseen national or worldwide events that significantly affect the cost of natural gas, coal or nuclear fuel.

Austin Energy Fuel Charge
3.65 cents per kWh on all kWh used each month

The Customer Service Charge is a monthly charge to help defray the direct cost of utility bill preparation, distribution and management.

Austin Energy Customer Charge
Remains unchanged at $6 per month.

Austin Energy strives to operate in the most efficient and cost effective manner possible. For example, Austin Energy has 1,710 employees – about the same number of employees employed by the utility in 1998. Since 1998, the number of customers served by Austin Energy has grown by more than 100,000. In addition, Austin Energy now provides a number of additional services to the community that assist the utility including Austin 3-1-1, economic development and air quality programs. Few electric utilities in the nation or any goods and services have operated or been offered with no increase in base rates for as many years as Austin Energy. The Consumer Price Index, a measure of the average change over time in the prices paid goods and services, has increased by 34% since 1998.