Energy Efficiency Services - Commercial and Multifamily Enrollment Pipeline Program Location Name Installation Address Council District Measures Est. kWh Savings Est. $ Incentive Multifamily Income Qualified Bridge at Henly 6107 E RIVERSIDE DR UNIT CLUB Multifamily Lantana Hills Apartments 7601 RIALTO BLVD UNIT TC Multifamily STONEY RIDGE APARTMENTS 3200 S 1ST ST UNIT 1 Multifamily Income Qualified ELM RIDGE 1190 AIRPORT BLVD Multifamily Mackenzie Point Apartments 1044 CAMINO LA COSTA UNIT 10 Commercial TRAVIS PARK PRESERVATION LLC 1100 E OLTORF ST UNIT 2 3 8 3 1 4 9 Attic Insulation, Duct Sealing and Remediation, Lighting, Smart PPT Eligible Thermostat, HVAC Tune-Up Attic Insulation, Duct Sealing and Remediation, Lighting, Smart PPT Eligible Thermostat, Supplemental Measure, HVAC Tune-Up, Water Saving Devices Smart PPT Eligible Thermostat, HVAC Tune-Up Attic Insulation, ECAD Incentive, Smart PPT Eligible Thermostat, HVAC Tune-Up, Water Saving Devices Attic Insulation,Building Information, Duct Sealing and Remediation, Smart PPT Eligible Thermostat, HVAC Tune- Up Chillers, Commercial Supplemental Measure, Roof/Ceiling Insulation, Reflective Roof Coating, Solar Screen/Solar Film 364,850 $ 257,648 447,754 $ 148,147 197,212 $ 104,928 111,909 $ 96,101 37,591 $ 86,116 200,260 $ 80,858 Rebate Fact Sheet - Energy Efficiency Services January 2026 Property Information Rebate Program Enrollment Multifamily 1297548 Customer or Property SOMERSET TOWNHOMES Property Address Year Built * Total Number of Rentable Units Building Total Square Feet 6800 AUSTIN CENTER BLVD 04 AUSTIN, TX 78731 1995 123 N/A Rebates and Estimated Annual Savings Measure ** Attic Insulation HVAC Tune-Up Smart PPT Eligible Thermostat Est. Kilowatt (kW) Reduction Est. Kilowatt- hours (kWh) Reduction Est. $/kW Rebate per Tenant Unit Total Rebate 33.3 17.3 10.5 26,128 $1,796 67,307 $1,887 59,882 $2,010 $487 $265 $171 $59,857 $32,656 $21,000 Total *** 61.1 * Year built may not include major renovations ** Fact sheets include final inspection information, and some values may have changed since original proposal. *** Assumes 100% Occupancy $113,513 153,317 $5,693 $923 Energy Efficiency Rebates in Past 10-Years Date (Year) Measure Rebate Amount N/A Rebate Fact Sheet - Energy Efficiency Services January 2026 Rebate Program Enrollment Customer or Property Property Address Year Built * Total Number of Rentable Units Building Total Square Feet Property Information Multifamily Income Qualified 1344686 The Amethyst 13401 METRIC BLVD 01 AUSTIN, TX 78727 1996 260 N/A Measure ** Rebates and Estimated Annual Savings Est. Kilowatt (kW) Reduction Est. Kilowatt- hours (kWh) Reduction Est. $/kW Rebate per Tenant Unit Total Rebate Attic Insulation Limited Time Bonus Offer …
REGULAR MEETING OF THE RESOURCE MANAGEMENT COMMISSION February 17, 2026 6:00 p.m. Austin Energy Headquarters; 1st Floor; Shudde Fath Conference Room 4815 Mueller Blvd, Austin, Texas 78723 Some members of the Resource Management Commission maybe participating by video conference. Public comment will be allowed in-person or remotely by telephone. Speakers may only register to speak on an item once either in-person or remotely and will be allowed up to three minutes to provide their comments. Registration no later than noon the day before the meeting is required for remote participation. To register contact Natasha Goodwin, at Natasha.Goodwin@austinenergy.com or 512-322-6505. Members: Charlotte Davis, Chair Paul Robbins, Vice Chair Kamil Cook Trey Farmer CALL MEETING TO ORDER AGENDA GeNell Gary Joseph Gerland Harry Kennard Martin Luecke Raphael Schwartz Alison Silverstein Danielle Zigon PUBLIC COMMUNICATION: GENERAL The first 5 speakers signed up prior to the meeting being called to order will each be allowed a three-minute allotment to address their concerns regarding items not posted on the agenda. APPROVAL OF MINUTES 1. Approve the minutes of the Resource Management Commission Meeting on January 20, 2026. DISCUSSION AND ACTION ITEMS 2. Discussion and recommend residential electric rates implemented by Austin Energy and its effects on energy conservation and equity. STAFF BRIEFING 3. Staff briefing on Water Management Strategy Implementation Report Highlights by Kevin Kluge, Water Conservation Division Manager, Austin Water. 4. Staff briefing on Customer Demand Response Battery Pilot by Hammad Chaudhry, Director, Energy Efficiency Services, Austin Energy and Lindsey McDougall, Manager, Energy Efficiency Services, Austin Energy. DISCUSSION ITEMS 5. Discussion on time of use rates and demand response. FUTURE AGENDA ITEMS ADJOURNMENT The City of Austin is committed to compliance with the Americans with Disabilities Act. Reasonable modifications and equal access to communications will be provided upon request. For assistance, please contact the Liaison or TTY users’ route through 711. A person may request language access accommodations no later than 48 hours before the scheduled meeting. Please call or email Natasha Goodwin at Austin Energy, at (512) 322-6505 or Natasha.Goodwin@austinenergy.com to request service or for additional information. For more information on the Resource Management Commission, please contact Natasha Goodwin at Austin Energy, at 512-322-6505 or Natasha.Goodwin@austinenergy.com .
Resource Management Commission Resolution Fairness of Residential Electric Rates Whereas, progressive Residential utility rates structures that charge less per unit for less consumption and more per unit for greater consumption encourage conservation; and Whereas progressive Residential rate structures also help save money for low-income customers, who generally use less energy; and Whereas, Austin Energy defended raising these rates during the 2025 budget by explaining to City Council and the Electric Utility Commission that Residential bills would actually go down because of lower fuel costs, when in fact this was not the case; and Whereas, Austin Energy’s more regressive Residential rate structure harms some City Council Districts disproportionally, with Districts 3,4,6,7, and 9 seeing the average bill go up between 31 and 34% between 2022 and 2026, while District 10 will see its average bill go up only 20% (See Attachment 1); and Whereas Austin Energy did not inform the City Council and the general public of this; and Whereas, Austin Energy has claimed that low-income customers have had their bills lowered through the Customer Assistance Program, even though the percentage of CAP customers in less than one-third of Austin’s population of low- and moderate-income citizens; and Whereas, due to the increasingly regressive nature of the rate structure, the majority of Residential customers in every City Council District will see their rates rise above average (See Attachment 2); and Whereas, the Resource Management Commission passed a resolution during the last Austin Energy rate case in 2022 that was on record against regressive rates (Recommendation No. 20221018-004B); and Whereas, Austin Energy intentionally avoided bringing this issue to the RMC during the budget and rate review in 2025, making it impossible for the Commission to make a similar recommendation; and Whereas, Austin Energy went on record during the settlement of the rate case in 2022 to raise Residential rates by a prescribed amount, but exceeded this in 2025, calling into question if the utility can abide by its commitments; and Whereas, electric rates were raised though the budget process and not through an evidentiary rate hearing that Austin is accustomed to; and Whereas rate cases were held in 2012, 2016, and 2022, but have since been completely eliminated; and Whereas, Austin Energy has predicted a 5% per year overall rate increase each year for the next four years; and Whereas, the increased Austin Energy budget has been created without allowing ratepayers and stakeholders …
Resource Management Commission Resolution Fairness of Residential Electric Rates WHEREAS, progressive Residential utility rates structures that charge less per unit for less consumption and more per unit for more consumption encourage conservation; and WHEREAS, progressive Residential rate structures also help save money for low-income customers, who generally use less energy; and WHEREAS, Austin Energy has implemented a more regressive Residential rate structure that runs counter to the goals of both energy conservation and of lowering costs for low-income residents; and WHEREAS, Austin Energy defended this change during the 2025 budget by explaining to City Council and the Electric Utility Commission that Residential bills would actually go down because of lower fuel costs, when in fact this has not happened; and WHEREAS, this more regressive Residential rate structure harms some City Council Districts disproportionally, where Districts 3,4,6,7, and 9 experienced rate increases of between 31 and 34% between 2022 and 2026, while District 10 experienced only a 20% rate increase (See Attachment 1); and WHEREAS, Austin Energy did not inform the City Council and the general public of this; and WHEREAS, Austin Energy has stated that low-income customers have had their bills lowered through the Customer Assistance Program, even though the percentage of CAP customers is less than one-third of Austin’s population of low- and moderate-income citizens; and WHEREAS, due to the increasingly regressive nature of the rate structure, the majority of Residential customers in every City Council District have seen their rates rise above average (See Attachment 2) because customers with the very highest energy usage received a rate increase far below the average; and WHEREAS, the Resource Management Commission (RMC) passed a resolution during the last Austin Energy rate case in 2022 that was on record against regressive rates (Recommendation No. 20221018-004B); and WHEREAS, Austin Energy did not mention this major rate change to RMC during the budget review in 2025, making it difficult for the Commission to make a similar recommendation; and WHEREAS, high monthly base fees such as those in Austin ($16.50) contribute to regressive rates, and there are other municipal electric utilities in Texas with lower monthly fees, including San Antonio CPS ($9.50), the City of Brownsville ($6.94); the City of Greenville ($12.15), the City of San Marcos ($12.61), and Bryan Texas Utilities ($11); and WHEREAS, Austin Energy went on record during the settlement of the rate case in 2022 to raise Residential rates by a …
Water Management Strategy Implementation REPORT Fourth Quarter 2025, October - December February 2026 Contents Fourth Quarter Summary Water Conservation Updates Water Loss Reduction Updates Reclaimed Water and Onsite Reuse Updates Conservation Outreach Updates Water Supply Project Updates Water Use and GPCD Notes Regarding Data 2 Fourth Quarter Summary The Water Management Strategy Implementation Report is intended to provide transparency and accountability regarding the execution of strategies from the 2024 Water Conservation Plan and the 2024 Water Forward Plan. The plans include proactive and substantial demand management strategies and innovative local supply strategies, but the hard work necessary to complete the strategies and meet the goals are illustrated in the implementation reports. While the combined water storage in Lakes Buchanan and Travis stayed about 80 percent full throughout the fourth quarter of 2025, Central Texas entered moderate and severe levels of hydrologic drought and remained throughout the quarter. These dry conditions resulted in summer-like water use levels in October before lessening in November. 3 Water Conservation Updates Annual WaterWise Irrigation Program seminar was held on November 6, 2025. Over 130 irrigators and landscapers attended the seminar to learn about landscaping and irrigation. Irrigation inspection anniversary – since October 2024, 1,600 new residential automatic irrigation systems have been inspected to meet State and Austin regulations, providing more efficient and effective landscape irrigation. In 2025, customers saved over 30 million gallons from rebate programs, the highest in 5 years. 4 Water Conservation Metrics Residential Rebate Programs Approved Rebates 50 45 40 35 30 25 20 15 10 5 0 Drought Survival Tools Irrigation Upgrades Rainwater Harvesting Rebates WaterWise Landscape WaterWise Rainscape Other Residential Programs Q4 2024-Q3 2025 Q4 2025 5 Water Conservation Metrics Commercial Rebate Programs Approved Rebates 5 4 3 2 1 0 4 4 3 1 1 0 0 0 0 0 Bucks for Business Other Commercial Programs Q4 2024-Q3 2025 Q4 2025 6 Water Conservation Metrics Compliance Assessments Number of Compliant Commercial Facilities 86% 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Number of Compliant Commercial Facilities 85% 96% 350 300 250 200 150 100 50 0 Landscape Irrigation Assessment Cooling Tower Assessment Vehicle Wash Assessment Q4 2024-Q3 2025 Q4 2025 Q4 2024-Q3 2025 Q4 2025 7 Water Conservation Strategy Milestones (Water Conservation Plan, p. 35-36, Water Forward Plan, p. 34, 36) 2025 Milestones Commercial Incentives Progress Pilot an …
BOARD/COMMISSION RECOMMENDATION Resource Management Commission Recommendation No. 20260217-002 Recommendation on Fairness of Residential Electric Rates WHEREAS, progressive Residential utility rates structures that charge less per unit for less consumption and more per unit for more consumption encourage conservation; and WHEREAS, progressive Residential rate structures also help save money for low-income customers, who generally use less energy; and WHEREAS, Austin Energy has implemented a more regressive Residential rate structure that runs counter to the goals of both energy conservation and of lowering costs for low-income residents; and WHEREAS, Austin Energy defended this change during the 2025 budget by explaining to City Council and the Electric Utility Commission that Residential bills would actually go down because of lower fuel costs, when in fact this has not happened; and WHEREAS, this more regressive Residential rate structure harms some City Council Districts disproportionally, where Districts 3,4,6,7, and 9 experienced rate increases of between 31 and 34% between 2022 and 2026, while District 10 experienced only a 20% rate increase (See Attachment 1); and WHEREAS, Austin Energy did not inform the City Council and the general public of this; and WHEREAS, Austin Energy has stated that low-income customers have had their bills lowered through the Customer Assistance Program, even though the percentage of CAP customers is less than one-third of Austin’s population of low- and moderate-income citizens; and WHEREAS, due to the increasingly regressive nature of the rate structure, the majority of Residential customers in every City Council District have seen their rates rise above average (See Attachment 2) because customers with the very highest energy usage received a rate increase far below the average; and WHEREAS, the Resource Management Commission (RMC) passed a resolution during the last Austin Energy rate case in 2022 that was on record against regressive rates (Recommendation No. 20221018- 004B); and WHEREAS, Austin Energy did not mention this major rate change to RMC during the budget review in 2025, making it difficult for the Commission to make a similar recommendation; and WHEREAS, high monthly base fees such as those in Austin ($16.50) contribute to regressive rates, and there are other municipal electric utilities in Texas with lower monthly fees, including San Antonio CPS ($9.50), the City of Brownsville ($6.94); the City of Greenville ($12.15), the City of San Marcos ($12.61), and Bryan Texas Utilities ($11); and WHEREAS, Austin Energy went on record during the settlement of the rate case in …
To: From: Date: MEMORANDUM Resource Management Commission (RMC) Stephanie Koudelka, Interim Senior VP & Chief Financial Officer February 13, 2026 Subject: February 17, 2026 RMC Agenda Item # 2 This memo clarifies and corrects information in the draft resolution on the February 17, 2026, meeting agenda. Austin Energy is a cost-recovery utility. Austin Energy’s rates are designed strictly to recover the utility’s costs incurred in providing electric service to customers. Austin Energy’s retail rate structure includes base rates, which cover fixed costs outlined below, and pass-through rates, which include the Power Supply Adjustment, Community Benefit Charge, and Regulatory Charge. Information about Austin Energy’s residential rates and charges is available on Austin Energy's website. Austin Energy’s rates are determined using careful planning and analysis, ensuring system reliability and the utility’s financial health. • Base rates are set to recover costs such as billing, metering, debt service, equipment, and employee salaries. Base rates include a customer charge and energy charges. The customer charge is $16.50 per month and remains low compared to our peers. Austin Energy’s Customer Assistance Program (CAP) customers, a set of customers that has been vastly expanded in recent years to reach more low income customers, do not pay the customer charge. Energy charges are based on the actual electricity used by customers each month, through an escalating tier structure. The less a customer uses, the lower their bill. • Customers’ energy usage has decreased consistently over the years due to Austin Energy’s industry leading conservation programs. Austin Energy must recover rising costs through a balanced approach in the fixed customer charge and energy charges. • Base rates are applied consistently to Austin Energy customers, and any difference among customer bills is due to consumption patterns, not Council district. • Rising costs, due mostly to rapid and substantial inflation in our sector but also due to critical system investments, mean that Austin Energy must increase base rates to achieve financial stability. In FY26, Austin Energy’s base rates increased 5% to ensure continued system resilience and effective cost recovery. Current base rates were approved by Council ordinance as part of the FY26 budget process. Page 1 of 2 • Austin Energy presents annual budget forecasts and departmental requests to the Electric Utility Commission and City Council. The EUC has purview over rates and has the opportunity to make recommendations to Council. City Council votes on Austin Energy’s rates every year …
Resource Management Commission Resolution Fairness of Residential Electric Rates WHEREAS, progressive Residential utility rates structures that charge less per unit for less consumption and more per unit for more consumption encourage conservation; and WHEREAS, progressive Residential rate structures also help save money for low-income customers, who generally use less energy; and Here is a chart that I have shown before derived from the U.S. Energy Information Administration’s Residential Consumption Survey. The data comes from Table CE1.4 Summary consumption and expenditures in the South - totals and intensities, “2020 annual household income.” WHEREAS, Austin Energy has implemented a more regressive Residential rate structure that runs counter to the goals of both energy conservation and of lowering costs for low-income residents; and The new tariff was approved by City Council on August 13, 2025. It contains increases in the Customer Charge and the lowest “Tier 1” of consumption, but no increases in the higher 3 Tiers of consumption. It can be found at this link. You can compare these to the older tariffs: Tariffs for FY 2024 and 2025 Pages 5 & 6 WHEREAS, Austin Energy defended this change during the 2025 budget by explaining to City Council and the Electric Utility Commission that Residential bills would actually go down because of lower fuel costs, when in fact this has not happened; and First, this is an example of the utility’s public stance, as taken from a news story. Matt Mitchell, a public information officer for Austin Energy, said...the base rate will rise 5%... However, Austin Energy has been able to lower the power supply adjustment charge...and most customers will see lower electric bills compared to last year. This is calculated in the Austin Energy Budget Presentation given to the EUC in mid-July. See Slide 16. Below is a screenshot. The PSA (fuel charge) here is 5.32¢ per kwh. ($45.77 ÷ 860 kwh.) But the actual fuel charge over the course of the year was 4.352¢. from: Everhart, Amy <Amy.Everhart@austinenergy.com> to: Paul Robbins <paul_robbins@greenbuilder.com> date: Jan 9, 2026, 3:31 PM subject: RE: Request for Information on 2025 PSA Costs Paul, Here is the response to your questions: Fiscal Year 2025 Average residential rate: $.04363 Weighted Average residential rate: $.04352 This EUC presentation was made 9 months into the rate year, so it was virtually impossible that Austin Energy could not know or at least estimate the last 3 months. The bottom line …
Resource Management Commission Residential Rate Structure Resolution Paul Robbins February 17, 2026 Map of Rate Increases by Austin City Council District Between 2022 and 2026 On December 16, 2025, I submitted Public Information Request #X022954 to Stuart Reilly, General Manager of Austin Energy. The answers were provided December 30, including the one below. In the most recent Austin Energy rate increase discussions and deliberations that have taken place since June of 2025, has there been any information provided by Austin Energy to the City Council or public on how the proposed rate increase affects individual City Council Districts? If so, provide this. REPLY: • No responsive information Austin Energy Boasts Bill Savings in 2026 Compared to 2025 Because Fuel Costs Were Lower $45.77 ÷ 860 Kwh = 5.3¢/Kwh Fuel Cost But Austin Energy Recently Stated Fuel Costs Were in Fact Only 4.35¢/Kwh in 2025 So the Total Bill in 2026 is More, Not Less, Than 2025 From Austin Energy February 13, 2026 Energy charges are based on the actual electricity used by customers each month, through an escalating tier structure. AUSTIN ENERGY PROPOSAL IN 2022 RATE CASE 8¢/Kwh Between Tiers vs 1¢/Kwh Differential Between Tiers Thanks for Your Attention Paul Robbins (512) 447-8712 Paul_Robbins@greenbuilder.com
BOARD/COMMISSION RECOMMENDATION Resource Management Commission Revised Recommendation No. 20260217-002 Recommendation on Fairness of Residential Electric Rates WHEREAS, progressive Residential utility rates structures that charge less per unit for less consumption and more per unit for more consumption encourage conservation; and WHEREAS, progressive Residential rate structures also help save money for low-income customers, who generally use less energy; and WHEREAS, Austin Energy has implemented a more regressive Residential rate structure that runs counter to the goals of both energy conservation and of lowering costs for low-income residents; and WHEREAS, Austin Energy defended this change during the 2025 budget by explaining to City Council and the Electric Utility Commission that Residential bills would actually go down because of lower fuel costs, when in fact this has not happened; and WHEREAS, this more regressive Residential rate structure harms some City Council Districts disproportionally, where Districts 3,4,6,7, and 9 experienced rate increases of between 31 and 34% between 2022 and 2026, while District 10 experienced only a 20% rate increase (See Attachment 1); and WHEREAS, Austin Energy did not inform the City Council and the general public of this; and WHEREAS, Austin Energy has stated that low-income customers have had their bills lowered through the Customer Assistance Program, even though the percentage of CAP customers is less than one-third of Austin’s population of low- and moderate-income citizens; and WHEREAS, due to the increasingly regressive nature of the rate structure, the majority of Residential customers in every City Council District have seen their rates rise above average (See Attachment 2) because customers with the very highest energy usage received a rate increase far below the average; and WHEREAS, the Resource Management Commission (RMC) passed a resolution during the last Austin Energy rate case in 2022 that was on record against regressive rates (Recommendation No. 20221018- 004B); and WHEREAS, Austin Energy did not mention this major rate change to RMC during the budget review in 2025, making it difficult for the Commission to make a similar recommendation; and WHEREAS, high monthly base fees such as those in Austin ($16.50) contribute to regressive rates, and there are other municipal electric utilities in Texas with lower monthly fees, including San Antonio CPS ($9.50), the City of Brownsville ($6.94); the City of Greenville ($12.15), the City of San Marcos ($12.61), and Bryan Texas Utilities ($11); and WHEREAS, Austin Energy went on record during the settlement of the rate case …
REGULAR MEETING OF THE RESOURCE MANAGEMENT COMMISSION January 20, 2026 6:00 p.m. Austin Energy Headquarters; 1st Floor; Shudde Fath Conference Room 4815 Mueller Blvd, Austin, Texas 78723 Some members of the Resource Management Commission maybe participating by videoconference. Public comment will be allowed in-person or remotely by telephone. Speakers may only register to speak on an item once either in-person or remotely and will be allowed up to three minutes to provide their comments. Registration no later than noon the day before the meeting is required for remote participation. To register contact Natasha Goodwin, at Natasha.Goodwin@austinenergy.com or 512-322-6505. Members: Charlotte Davis, Chair Paul Robbins, Vice Chair Kamil Cook Trey Farmer CALL MEETING TO ORDER AGENDA GeNell Gary Joseph Gerland Harry Kennard Martin Luecke Raphael Schwartz Alison Silverstein Danielle Zigon PUBLIC COMMUNICATION: GENERAL The first 5 speakers signed up prior to the meeting being called to order will each be allowed a three-minute allotment to address their concerns regarding items not posted on the agenda. APPROVAL OF MINUTES 1. Approve the minutes of the Resource Management Commission Meeting on November 18, 2025. DISCUSSION AND ACTION ITEMS 2. Discussion and recommend a policy for the Texas Gas Service franchise negotiations. DISCUSSION 3. Discussion on residential electric rates implemented by Austin Energy and its effects on energy conservation and equity. FUTURE AGENDA ITEMS ADJOURNMENT The City of Austin is committed to compliance with the Americans with Disabilities Act. Reasonable modifications and equal access to communications will be provided upon request. For assistance, please contact the Liaison or TTY users’ route through 711. A person may request language access accommodations no later than 48 hours before the scheduled meeting. Please call or email Natasha Goodwin at Austin Energy, at (512) 322-6505 or Natasha.Goodwin@austinenergy.com to request service or for additional information. For more information on the Resource Management Commission, please contact Natasha Goodwin at Austin Energy, at 512-322-6505 or Natasha.Goodwin@austinenergy.com .
Draft Resource Management Commission Resolution on Texas Gas Service Franchise October 20, 2025 Introduction The City of Austin (The City) has a 20-year franchise agreement with Texas Gas Service (TGS), which is the company’s license to operate in the city limits. That franchise agreement expires in October of 2026. The renewal of the franchise is a once-in-a-generation opportunity to correct or reform longstanding problems that include high rates, high fuel costs, poorly designed rate structures, poorly performing energy conservation programs, scant funding to assist low-income ratepayers, and lack of progress in shrinking the company’s carbon footprint with the company. 1.0 Selection of Company and Term of Franchise WHEREAS, Texas Gas Service, the fifth consecutive owner of the main private gas utility that has provided service in the city limits of Austin since the 1870s, has never participated in a competitive process to determine if the company offers ratepayers adequate or better service; and WHEREAS, the current term of the franchise is 20 years (a 10-year initial period with a subsequent 10-year automatic renewal with minimal conditions), is too long a time period to lapse without a revised regulatory agreement; and 1.1 High and Inequitable Rates WHEREAS, retail residential gas rates have gone up about 132% between 2016 and 2025, which is 96% above inflation; and WHEREAS, Texas Gas Service has proposed three rate increases in since 2024; and WHEREAS, these rate increases are largely driven by the cost of capital expansion or improvements of the system, and no city or state regulator has the ability to prevent these expenditures prior to their occurrence; and WHEREAS, TGS does not collect full payment for new infrastructure (known as Contribution in Aid of Construction or Capital Recovery Fees) required for new customers, thus subsidizing new customers while increasing gas bills of existing customers; and WHEREAS, the recent combination of TGS Central Texas and Gulf Coast regions for purposes of ratemaking has raised Austin’s bills while lowering bills in the Coastal region; and 1.2 Rate Structure (Conservation-Based Rates that Also Help Low-Income Customers) WHEREAS, Austin’s municipal utilities have progressive tiered rates that charge less per unit for less usage, while Texas Gas Service has historically maintained a regressive flat rate, which discourages conservation and adversely affects lower-income ratepayers who typically consume less energy; and 1.3 Low-Income Assistance WHEREAS, TGS currently has no customer assistance program that reduces monthly gas bills for low-income customers; and …
RESOURCE MANAGEMENT COMMISSION RECOMMENDATION 20260120-XX Recommendation on Leak Detection and Repair in Texas Gas Service Franchise Agreement WHEREAS, the City of Austin has a 20-year franchise agreement with Texas Gas Service (TGS), which is the Company’s license to operate in the City’s right of way; and WHEREAS, methane leaks are an inherent risk in the operation of gas utilities and can pose significant safety concerns for people, businesses and infrastructure; and WHEREAS, it is in the interest of the residents of the City of Austin to have visibility into the frequency and severity of methane leaks and the mitigation and repair procedures being employed to minimize the risk; and WHEREAS, minimum leak detection standards are established by federal and state law and the City’s current franchise agreements include only general provisions requiring gas utilities to comply with applicable federal and state regulations; and WHEREAS, the public has limited visibility into the efforts to detect and reduce leaks, the effectiveness of such efforts, the frequency, duration, and persistence of non-hazardous leaks, and the volume of methane emissions from ongoing leaks; and WHEREAS, current advanced leak detection and repair (LDAR) programs may include highly sensitive vehicle-mounted detectors, infrared optical imaging and other methodologies, but are continuously evolving; NOW, THEREFORE BE IT RESOLVED THAT The Resource Management Commission recommends that the City require in its upcoming franchise agreement that Texas Gas Service: 1. Employ industry-leading advanced leak detection and repair technologies throughout the term of the agreement, including technologies that increase the speed and sensitivity of leak detection, expand the search footprint, reduce response time for gas emergencies, and/or increase the repair speed of leaks within the City, 2. Regularly update its LDAR practices to reflect technological advancements, 3. Submit annual reports to the City on the performance of its LDAR programs within the City. Information in reports could include but is not limited to: ○ LDAR practices & technology employed including leak detection survey frequency and mitigation strategies ○ Fugitive methane emissions and fugitive methane emissions rate ○ Average response time for gas emergencies ○ Average leak repair time
Resource Management Commission Resolution Fairness of Residential Electric Rates Whereas, progressive Residential utility rates structures that charge less per unit for less consumption and more per unit for greater consumption encourage conservation; and Whereas progressive Residential rate structures also help save money for low-income customers, who generally use less energy; and Whereas, Austin Energy defended raising these rates during the 2025 budget by explaining to City Council and the Electric Utility Commission that Residential bills would actually go down because of lower fuel costs, when in fact this was not the case; and Whereas, Austin Energy’s more regressive Residential rate structure harms some City Council Districts disproportionally, with Districts 3,4,6,7, and 9 seeing the average bill go up between 31 and 34% between 2022 and 2026, while District 10 will see its average bill go up only 20% (See Attachment 1); and Whereas Austin Energy did not inform the City Council and the general public of this; and Whereas, Austin Energy has claimed that low-income customers have had their bills lowered through the Customer Assistance Program, even though the percentage of CAP customers in less than one-third of Austin’s population of low- and moderate-income citizens; and Whereas, due to the increasingly regressive nature of the rate structure, the majority of Residential customers in every City Council District will see their rates rise above average (See Attachment 2); and Whereas, the Resource Management Commission passed a resolution during the last Austin Energy rate case in 2022 that was on record against regressive rates (Recommendation No. 20221018-004B); and Whereas, Austin Energy intentionally avoided bringing this issue to the RMC during the budget and rate review in 2025, making it impossible for the Commission to make a similar recommendation; and Whereas, Austin Energy went on record during the settlement of the rate case in 2022 to raise Residential rates by a prescribed amount, but exceeded this in 2025, calling into question if the utility can abide by its commitments; and Whereas, electric rates were raised though the budget process and not through an evidentiary rate hearing that Austin is accustomed to; and Whereas rate cases were held in 2012, 2016, and 2022, but have since been completely eliminated; and Whereas, Austin Energy has predicted a 5% per year overall rate increase each year for the next four years; and Whereas, the increased Austin Energy budget has been created without allowing ratepayers and stakeholders …
Energy Efficiency Services - Commercial and Multifamily Enrollment Pipeline Program Location Name Installation Address Council District Measures Est. kWh Savings Est. $ Incentive Multifamily Lantana Hills Apartments 7601 RIALTO BLVD 8 Multifamily SOMERSET TOWNHOMES 6800 AUSTIN CENTER BLVD 04 10 Multifamily STONEY RIDGE APARTMENTS 3200 S 1ST ST Multifamily Mackenzie Point Apartments 1044 CAMINO LA COSTA Multifamily Income Qualified Bridge at Henly 6107 E RIVERSIDE DR UNIT CLUB Multifamily Income Qualified ELM RIDGE 1190 AIRPORT BLVD Multifamily Income Qualified The Amethyst 13401 METRIC BLVD 01 Multifamily Income Qualified Bridge at Goodnight Ranch 9005 ALDERMAN DR HP1 3 4 3 1 7 2 Attic Insulation, Duct Sealing and Remediation, Lighting, Smart PPT Eligible Thermostat, HVAC Tune-Up Attic Insulation, Duct Sealing and Remediation, Lighting, Smart PPT Eligible Thermostat, HVAC Tune-Up Attic Insulation, Duct Sealing and Remediation, Lighting, Smart PPT Eligible Thermostat, HVAC Tune-Up Attic Insulation, Duct Sealing and Remediation, Lighting, Smart PPT Eligible Thermostat, HVAC Tune-Up Attic Insulation, Duct Sealing and Remediation, Lighting, Smart PPT Eligible Thermostat, HVAC Tune-Up Attic Insulation, Duct Sealing and Remediation, Lighting, Smart PPT Eligible Thermostat, HVAC Tune-Up Attic Insulation, Duct Sealing and Remediation, Lighting, Smart PPT Eligible Thermostat, HVAC Tune-Up Attic Insulation, Duct Sealing and Remediation, Lighting, Smart PPT Eligible Thermostat, HVAC Tune-Up 479,191 $ 192,467 153,317 $ 113,513 197,212 $ 104,928 37,591 $ 86,116 364,850 $ 257,648 111,909 $ 96,101 1,006 $ 82,425 129,687 $ 62,178 Rebate Fact Sheet - Energy Efficiency Services December 2025 Rebate Program Enrollment Property Information Multifamily Income Qualified 1325312 Customer or Property THE PARK AT WALNUT CREEK Property Address Year Built * Total Number of Rentable Units Building Total Square Feet 12113 METRIC BLVD 1 AUSTIN, TX 78758 1995 342 N/A Measure ** Rebates and Estimated Annual Savings Est. Kilowatt (kW) Reduction Est. Kilowatt- hours (kWh) Reduction Est. $/kW Rebate per Tenant Unit Total Rebate Attic Insulation Limited Time Bonus Offer 69.7 33,234 $1,472 $300 $102,491 $3 $894 Total *** 69.7 * Year built may not include major renovations ** Fact sheets include final inspection information, and some values may have changed since original proposal. *** Assumes 100% Occupancy $103,385 33,234 $1,472 $302 Date (Year) Measure Rebate Amount Energy Efficiency Rebates in Past 10-Years N/A Rebate Fact Sheet - Energy Efficiency Services December 2025 Rebate Program Enrollment Property Information Multifamily Income Qualified 1327099 Customer or Property BRIDGE AT SOUTHPARK LANDING Property Address Year Built * Total Number of Rentable Units Building …
RESOURCE MANAGEMENT COMMISSION RECOMMENDATION 20260120-XX Recommendation on the Future of Energy Conservation Programs in Texas Gas Service Franchise Agreement WHEREAS, Texas Gas Service (TGS) has been planning and operating Residential energy conservation incentive programs that do not pay for themselves in reduced fuel costs or reduced fuel consumption;1 and WHEREAS, some of these conservation programs are largely targeted at marketing gas appliances rather than energy efficiency;2 and WHEREAS, TGS conservation program incentives are, on average, much higher than those offered by other gas utilities around the country;3 and WHEREAS, Austin Energy already runs similar conservation programs for energy efficiency building improvements and serve most of the same customers as TGS. Austin’s programs have proven much more successful at achieving cost-effective energy savings than TGS' programs; and WHEREAS, there is precedent for the City of Austin to operate a gas utility conservation program, which took place between 1987 and 1997; and WHEREAS, TGS is currently in violation of its franchise, which requires it to implement energy conservation programs as part of its normal operations; THEN BE IT THEREFORE RESOLVED that the City’s Resource Management Commission recommend that the Austin City Council implement the following policies related to the new Texas Gas Service franchise agreement: • Austin should take over planning and management of TGS conservation programs as part of the new franchise agreements, with charges for gas conservation programs paid by TGS. • These funds should be collected with either an increased franchise fee specific to each rate class of customers or a bill rider similar to the Texas Gas Service’s Conservation Adjustment Charge or Austin Energy’s Community Benefits Charges. The funds from an increased franchise fee or bill rider can be allowed to change from year to year, with a not-to-exceed amount or percentage.4 1 Evidence sent to the Texas Railroad Commission, “TGS Conservation Letter to RRC,” on August 8, 2025. 2 Ibid. 3 Evidence sent to the Texas Railroad Commission, “2025 – Gas Utility Rebate Survey 1.0.xlsx,” on August 8, 2025. 4 Using 2025 data as a benchmark, funding the current TGS Residential conservation program would require a franchise fee increase from 5% to about 6.5% on the Residential class. Funding the current TGS commercial program would raise the franchise fee from 5% to about 5.35% to 5.7%. These costs were formerly collected with a bill rider. • Under certain circumstances, increased franchise fee revenue can also be used …
RESOURCE MANAGEMENT COMMISSION RECOMMENDATION 20260120-XX Recommendation on Franchise Fees for Public Entities Texas Gas Service Franchise Agreement WHEREAS, the City of Austin levies a 5% franchise fee on the gross receipts of rates and normal fuel costs, which support the City’s General Fund services; and WHEREAS, the City exempts franchise fee collections from public entities (including governments, educational institutions, and hospitals that provide indigent health care), which does not always occur in other Texas cities; and THEN BE IT THEREFORE RESOLVED that the City’s Resource Management Commission recommend that the Austin City Council implement the following policies related to the new Texas Gas Service franchise agreement: • The City should conduct a benchmark study of large Texas cities to compare the practice of exempting public entities from natural gas utility franchise fees. If the City of Austin is found to be abnormally lenient in collecting franchise fees compared to other large Texas cities, then a phased-in collection of these fees should be enacted.
RESOURCE MANAGEMENT COMMISSION RECOMMENDATION 20260120-XX Recommendation on High Fuel Costs in Texas Gas Service Franchise Agreement WHEREAS, fuel costs, which are added to rates as part of the total gas bill, have spiked in recent years due to increased storage and pipeline demand charges; adding to affordability problems; THEN BE IT THEREFORE RESOLVED that the City’s Resource Management Commission recommend that the Austin City Council implement the following policies related to the new Texas Gas Service franchise agreement: • TGS and the City should investigate ways to lower gas storage costs, demand fees, and reservation fees to historical levels.
RESOURCE MANAGEMENT COMMISSION RECOMMENDATION 20260120-XX Recommendation on Low-Income Assistance in Texas Gas Service Franchise Agreement WHEREAS, TGS currently has no customer assistance program that reduces monthly gas bills for low-income customers; and WHEREAS, TGS only provides minimal funding for emergency bill payments for low-income customers; and WHEREAS, in contrast, Austin Energy and Austin Water provide substantial funding for these kinds of low-income assistance; and THEN BE IT THEREFORE RESOLVED that the City’s Resource Management Commission recommend that the Austin City Council implement the following policies related to the new Texas Gas Service franchise agreement: • The City should immediately require TGS to adopt an income-qualified monthly customer assistance program, to be phased in to enroll at least 7% of ratepayers in the Austin city limits by January 2029. This program could be funded with an increased franchise fee, a bill rider, or a modified rate structure. • The City should require TGS to fund at least $500,000 annually (to go up with annual inflation) for income-qualified emergency bill assistance in the Austin city limits, and to fund at least half of this with money paid by shareholders of the company.
RESOURCE MANAGEMENT COMMISSION RECOMMENDATION 20260120-XX Recommendation on High and Inequitable Rates in Texas Gas Service Franchise Agreement WHEREAS, Texas Gas Service (TGS) residential gas rates have gone up about 108% between 2019 and 2025, which is 79% above inflation; and WHEREAS, Texas Gas Service has proposed three rate increases since 2024; and WHEREAS, these rate increases are largely driven by the cost of capital expansion or improvements of the system, and no city or state regulator has the ability to prevent these expenditures prior to their occurrence; and WHEREAS, TGS does not collect full payment for new infrastructure (known as Contribution in Aid of Construction or Capital Recovery Fees) required for new customers, thus subsidizing new customers while increasing gas bills of existing customers; and WHEREAS, when Austin Energy and Austin Water implemented full capital recovery fees, they experienced rate decreases; and WHEREAS, Austin’s municipal utilities have progressive tiered rates that charge less per unit for less usage, while Texas Gas Service has historically maintained a regressive flat rate, which discourages conservation and adversely affects lower-income ratepayers who typically consume less energy; THEN BE IT THEREFORE RESOLVED that the City’s Resource Management Commission recommend that the Austin City Council implement the following policies related to the new Texas Gas Service franchise agreement: • Austin should demand full capital recovery fees for new hookups and developments in the same manner that it employs for its municipal electric and water utilities. This model should emulate how Austin Water collects water infrastructure improvements for the entire system from new customers as well as the infrastructure for the local infrastructure specific to these new customers.1 • The City of Austin, through the Resource Management Commission and the Austin City Council, should require an annual report by Texas Gas Service of its expected Plant Costs (Capital Improvements) for the coming year prior to their expense. 1 The Commission particularly disagrees that revenue collected from new customers, for example during the first 10 years of their service, can be used as a justification for burdening existing customers by requiring them to subsidize the new development capital expenses. The City should require that this practice ends within the City and that developer contributions reflect the full cost of development so that existing customers are no longer burdened by system expansion. City should require that Austin ratepayers not be billed for uncollected development expenses within or outside of …
RESOURCE MANAGEMENT COMMISSION RECOMMENDATION 20260120-XX Recommendation on Selection of Company and Term of Franchise in Texas Gas Service Franchise Agreement WHEREAS, Texas Gas Service, the fifth consecutive owner of the main private gas utility that has provided service in the city limits of Austin since the 1870s, has never participated in a competitive process to determine if the company offers ratepayers adequate or better service; and WHEREAS, the current term of the franchise is 20 years (a 10-year initial period with a subsequent 10-year automatic renewal with minimal conditions), is too long a time period to lapse without a revised regulatory agreement; THEN BE IT THEREFORE RESOLVED that the City’s Resource Management Commission recommend that the Austin City Council implement the following policies related to the new Texas Gas Service franchise agreement: • The new franchise agreement should be limited to a 10-year term with a firm expiration date and no automatic renewal, as a shorter term will ensure greater regulatory accountability. • Over the proposed 10-year period of the next franchise, the City should consider alternative strategies to lower rates, including municipalization and competitive bidding by other gas utilities. • The agreement should maintain the City's option to purchase distribution system throughout the entirety of the franchise term.
BOARD/COMMISSION RECOMMENDATION Resource Management Commission Recommendation No. 20260120-002 Recommendation on Texas Gas Service Franchise Introduction The City of Austin (The City) has a 20-year franchise agreement with Texas Gas Service (TGS), which is the company’s license to operate in the city limits. That franchise agreement expires in October of 2026. The renewal of the franchise is a once-in-a-generation opportunity to correct or reform longstanding problems that include high rates, high fuel costs, poorly designed rate structures, poorly performing energy conservation programs, scant funding to assist low-income ratepayers, and lack of progress in shrinking the company’s carbon footprint. 1.0 Selection of Company and Term of Franchise WHEREAS, Texas Gas Service, the fifth consecutive owner of the main private gas utility that has provided service in the city limits of Austin since the 1870s, has never participated in a competitive process to determine if the company offers ratepayers adequate or better service; and WHEREAS, the current term of the franchise is 20 years (a 10-year initial period with a subsequent 10- year automatic renewal with minimal conditions), is too long a time period to lapse without a revised regulatory agreement; and 1.1 High and Inequitable Rates WHEREAS, Texas Gas Service (TGS) residential gas rates have gone up about 108% between 2019 and 2025, which is 79% above inflation; and WHEREAS, Texas Gas Service has proposed three rate increases since 2024; and WHEREAS, these rate increases are largely driven by the cost of capital expansion or improvements of the system, and no city or state regulator has the ability to prevent these expenditures prior to their occurrence; and WHEREAS, TGS does not collect full payment for new infrastructure (known as Contribution in Aid of Construction or Capital Recovery Fees) required for new customers, thus subsidizing new customers while increasing gas bills of existing customers; and WHEREAS, when Austin Energy and Austin Water implemented full capital recovery fees, they experienced rate decreases; and WHEREAS, Austin’s municipal utilities have progressive tiered rates that charge less per unit for less usage, while Texas Gas Service has historically maintained a regressive flat rate, which discourages conservation and adversely affects lower-income ratepayers who typically consume less energy; and 1.2 Low-Income Assistance WHEREAS, TGS currently has no customer assistance program that reduces monthly gas bills for low- income customers; and WHEREAS, TGS only provides minimal funding for emergency bill payments for low-income customers; and WHEREAS, in contrast, Austin Energy …
PROPOSED AMENDMENTS Resource Management Commission 20260120-02 Recommendation on Texas Gas Service Franchise Introduction The City of Austin (The City) has a 20-year franchise agreement with Texas Gas Service (TGS), which is the company’s license to operate in the city limits. That franchise agreement expires in October of 2026. The renewal of the franchise is a once-in-a-generation opportunity to correct or reform longstanding problems that include high rates, high fuel costs, poorly designed rate structures, poorly performing energy conservation programs, scant funding to assist low-income ratepayers, and lack of progress in shrinking the company’s carbon footprint with the company. 1.0 Selection of Company and Term of Franchise WHEREAS, Texas Gas Service, the fifth consecutive owner of the main private gas utility that has provided service in the city limits of Austin since the 1870s, has never participated in a competitive process to determine if the company offers ratepayers adequate or better service; and WHEREAS, the current term of the franchise is 20 years (a 10-year initial period with a subsequent 10-year automatic renewal with minimal conditions), is too long a time period to lapse without a revised regulatory agreement; and 1.1 High and Inequitable Rates WHEREAS, Texas Gas Service (TGS) residential gas rates have gone up about 132% 108% between 2016 2019 and 2025, which is 96 79% above inflation; and WHEREAS, Texas Gas Service has proposed three rate increases since 2024; and WHEREAS, these rate increases are largely driven by the cost of capital expansion or improvements of the system, and no city or state regulator has the ability to prevent these expenditures prior to their occurrence; and WHEREAS, TGS does not collect full payment for new infrastructure (known as Contribution in Aid of Construction or Capital Recovery Fees) required for new customers, thus subsidizing new customers while increasing gas bills of existing customers; and WHEREAS, when Austin Energy and Austin Water implemented full capital recovery fees, they experienced rate decreases; and WHEREAS, the recent combination of TGS Central Texas and Gulf Coast regions for purposes of ratemaking has raised Austin’s bills while lowering bills in the Coastal region; and 1.2 Rate Structure (Conservation-Based Rates that Also Help Low-Income Customers) WHEREAS, Austin’s municipal utilities have progressive tiered rates that charge less per unit for less usage, while Texas Gas Service has historically maintained a regressive flat rate, which discourages conservation and adversely affects lower-income ratepayers who typically consume less energy; …
Austin Energy Residential Rate Hike Resource Management Commission Paul Robbins • January 20, 2026 Lower-Income Customers Use Less Energy From: Residential Energy Consumption Survey 2020 for Southern U.S. U.S. Energy Information Administration Austin Energy Residential Rates Increased 29% Between 2022 and 2026 The Majority of Residential Customers In Every Council District Have Above-Average Rate Increases Council Can Retroactively Change Rates Make X5% Applicable to Monthly Charge and All Tiers
RESOURCE MANAGEMENT COMMISSION MEETING MINUTES Tuesday, January 20, 2026 RESOURCE MANAGEMENT COMMISSION REGULAR CALLED MEETING MINUTES Tuesday, January 20, 2026 The Resource Management Commission convened in a Regular Called meeting on Tuesday, January 20, 2026, at Austin Energy Headquarters 4815 Mueller Blvd, Austin, TX 78723. Chair Charlotte Davis called the Resource Management Commission meeting to order at 6:04 p.m. Board Members/Commissioners in Attendance: Commissioner Charlotte Davis, Chair; Commissioner Paul Robbins, Vice Chair; Commissioner Kamil Cook; Commissioner Trey Farmer; Commissioner Harry Kennard; Commissioner Martin Luecke; Commissioner Raphael Schwartz; Commissioner Alison Silverstein. Board Members/Commissioners Commissioner Danielle Zigon. in Attendance Remotely: Commissioner GeNell Gary; Commissioners Absent: Commissioner Joseph Gerland PUBLIC COMMUNICATION: General- • Al Braden- Texas Gas Service franchise • Craig Naizer- Texas Gas Service franchise • Shane Johnson- Texas Gas Service franchise • Kaiba White- Texas Gas Service franchise APPROVAL OF MINUTES 1. Approve the minutes of the Resource Management Commission Meeting on November 18, 2025. The motion approving the minutes of the Resource Management Commission regular called meeting of November 18, 2025 was approved on Commissioner Silverstein’s motion, Commissioner Kennard’s second on a 10-0 vote, with Commissioner Gerland absent. DISCUSSION AND ACTION ITEMS 2. Discussion and recommend a policy for the Texas Gas Service franchise negotiations. The motion approving a policy for the Texas Gas Service franchise negotiations was approved on Vice Chair Robbin’s motion, Commissioner Silverstein’s second on a 10-0 vote, with Commissioner Gerland absent. DISCUSSION 3. Discussion on residential electric rates implemented by Austin Energy and its effects on energy conservation and equity. RESOURCE MANAGEMENT COMMISSION MEETING MINUTES Tuesday, January 20, 2026 The commission discussed the residential electric rates implemented by Austin Energy and its effects on energy conservation and equity. This item was tabled to February’s meeting. FUTURE AGENDA ITEMS • Discussion on residential electric rates implemented by Austin Energy and its effects on energy conservation and equity. (Sponsors: Robbins and Davis) • Recommendation on the time of use of rates and demand response (Sponsors: Farmer and Davis) • District Energy Cooling Recommendations and Plans - Silverstein • Briefing on the Community benefit charge and power supply adjustment- Luecke ADJOURNMENT The meeting was adjourned at 8:16 p.m. The meeting minutes were approved at the February 17, 2026 meeting on Vice Chair Robbins motion, Commissioner Silverstein’s second on an 8-0 vote, with Commissioners Gary, Gerland, and Zigon absent.
