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Austin City Council approved an updated resource, generation, and climate protection plan. Also, Austin City Council directed Austin Energy staff to develop and adopt an affordability goal for rates and services for all classes of customers by no later than December 31, 2010.

Some of the key principles of the adopted plan include:

  • Develop affordability benchmark for customer bills
  • Evaluate impact on disadvantaged
  • Retain and attract businesses; economic development (1)

However, even without this plan, electric utility rates will be going up. Austin Energy's fair share to pay for upgrading transmission lines will increase bills by 6.7 percent. Also, the additional costs to implement the current generation plan, including recent power purchase agreements approved by City Council will increase electric bills by 10.4 percent. Combined, customers' bills will increase by 17.2 percent, before taking inflation into account.

On Thursday, April 22, 2010, Austin City Council approved an updated resource, generation, and climate protection plan. Also, Austin City Council directed Austin Energy staff to develop and adopt an affordability goal for rates and services for all classes of customers by no later than December 31, 2010.

As presented by Austin Energy staff to the City Council on April 8, 2010, some of the key principles of the proposed plan include:

  • Develop affordability benchmark for customer bills
  • Evaluate impact on disadvantaged
  • Retain and attract businesses; economic development (1)

However, without this plan, electric utility rates will be going up. Austin Energy's fair share to pay for upgrading transmission lines will increase bills by 6.7 percent. Also, the additional costs to implement the current generation plan, including recent power purchase agreements approved by City Council will increase electric bills by 10.4 percent. Combined, customers' bills will increase by 17.2 percent, before taking inflation into account.

With this new plan under consideration, customers' bills will increase by an additional 9.5 percent, again above and beyond inflation. (2) Altogether, by implementing the old generation plan and the new generation plan, electric bills will increase by nearly 27 percent before inflation. That's reduced purchasing power for Austin residents and businesses, especially for those on fixed incomes or whose wages barely keep pace with inflation. To pay for electric bills in the future, Austin Energy customers will need to cut their budget in other places.

The Austin Chamber of Commerce will continue working with Austin Energy to develop and implement affordability matrix to evaluate future power investments.

Additional Organizations:

Sources of Information:

  • (1) – Slide 6 of Austin Energy Resource, Generation, and Climate Protection Plan to 2020
  • (2) – Slide 15 of Austin Energy Resource, Generation, and Climate Protection Plan to 2020

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