AUSTIN (Talk1370.com) -- After debating it for much of the past year, Austin City Council members on Thursday approved a base rate hike for Austin Energy customers that will go into effect in 2023.
The final proposal narrowly passed a divided council, with only seven votes in favor.
Despite an initial proposal seeking an average $15/month increase in the average ratepayer's bill, the approved proposal will result in a smaller $9/month increase.
The utility's customer charge will rise from $10/month to $13/month beginning in March 2023. That charge will increase to $14 in 2024, and $15 in 2025.
Actual usage rates are also set to rise, amounting to about $6/month for the average ratepayer. Between the usage rate and the customer charge increase, the average ratepayer will pay roughly 5% more per month.
According to Austin Energy, this is the first base rate increase for the utility in over 10 years.
"We know any rate increase affects our customers, who are dealing with rising costs just like our utility," said Jackie Sargent, Austin Energy's general manager. "With the new base rates, residential customers will continue to see some of the lowest bills in the state while paying closer to the cost of service. I appreciate City Council recognizing the need to protect customers from rate shock while improving the utility's financial position to continue to meet our community's needs and priorities in the long term. We believe this balanced approach will help our customers and our utility's long-term financial health."
Thursday's increase comes on the heels of an increase in the utility's pass-through rates in October. That increase is expected to add about $15 a month to the average ratepayer's bill.
