Council Revisits Energy Rate Increase
“This is a terrible time for a rate increase,” said Councilmember Bill Spellman. “I wish we could wait another year or two before proposing higher electric rates, but we can’t.”
The proposal – sponsored by Spellman, Chris Riley and Mayor Pro Tem Sheryl Cole – uses the same five-tier rate structure originally designed by Austin Energy, but sets the monthly household base charge at $10. Austin Energy’s initial proposal asked for $22.
“The combination of the progressive rate and reduced fixed charges means that the average household will pay about 8 percent more for electric power – about half the increase of the Austin Energy proposal,” Spellman said.
The rate increase would be implemented over two phases – the second would begin in 2015. City Council will discuss the proposal Thursday, May 17.