Recommendation 20221018-004B: Resolution on Austin Energy Proposed Residential Electric Rate Increase — original pdf

Recommendation

BOARD/COMMISSION RECOMMENDATION Resource Management Commission Recommendation No. 20221018-004B Resolution on Austin Energy Proposed Residential Electric Rate Increase Whereas, Austin has been a leader in energy efficiency since the 1970s; and Whereas, Austin Energy has the lowest average Residential electricity consumption of any large utility in ERCOT, which also allows it to have one of the lowest average Residential bills of any utility in ERCOT; and Whereas, proposed changes to Austin Energy’s Residential electric rate structure threaten further progress in energy efficiency by dramatically removing price signals to conserve; and Whereas, since low-income utility customers generally use less energy than average customers, changing Austin’s progressive electric Residential rate structure that discourages consumption will make bills more burdensome to the lower and moderate income residents; and Whereas, Austin Energy has made a proposal in its current rate case to completely replace the current progressive rate structure with one that rewards more consumption; Whereas, Austin Energy's current $10 per month customer charge is on par with fixed fees at other Texas municipal utilities, and Austin Energy's proposed $25 per month fixed fee would far exceed similarly situated Texas municipal utilities; NOW, THEREFORE, BE IT RESOLVED that the Resource Management Commission of the City of Austin advises the City Council to retain Austin Energy’s current progressive rate structure and avoid any significant increase in the customer charge; and BE IT FURTHER RESOLVED that if any rate increases are enacted, they be levied as a proportional increase to the utility’s current monthly base cost and tiers in its current rate structure. Commissioner Kaiba White, Vice Chair; Commissioner Charlotte Davis; Commissioner Shane Johnson; Commissioner Paul Robbins; Commissioner Louis Stone; Commissioner Lisa Chavarria Commissioner Jonathon Blackburn, Chair Vote: For: 6-1 Against: Abstentions: None Off Dais: None Absences: Commissioner Sam Angoori; Commissioner Dana Harmon; Commissioner Rebecca Brenneman Vacancies: District 7 Attest: Natasha Goodwin, Staff Liaison