NAsk the editorew Austin Energy rates went into effect Jan. 1, and the average electric utility customer will see a decrease in his or her annual bill.


Austin City Council approved the new structure for Austin Energy’s rates and fees in August. The utility worked with several local entities to reduce its revenue requirement by $42.5 million.


Austin Energy is transitioning from seasonal base rates—which were higher during the summer and, thus, hotter months—to a base rate that is consistent throughout the year.


The average residential customer in each usage level, or tier, is expected to save the following amount over a year on his or her electricity bills:




  • Tier 1 (460 kilowatt-hours per month): $4.12

  • Tier 2 (960 kilowatt-hours per month): $34.52

  • Tier 3 (1,471 kilowatt-hours per month): $69.30

  • Tier 4 (2,459 kilowatt-hours per month): $50.77

  • Tier 5 (3,451 kilowatt-hours per month): $9.69


For more information on the new rate structure, visit www.austinenergy.com.