The Austin City Council heard Austin Energy's recommended modifications to the proposed 12.5 percent increase in system-wide rates at the council's Feb. 2 regular meeting.
Austin Energy outlined four main changes, including phasing in the rate increase in two-steps. The first phase would take place this year, while the second would be in October 2014.
During Phase 1, billing reserves would be deferred, and bill commencement would occur by June 1. Phase 2 would include rebuilding reserves and billing commencement by Oct. 1, 2014. This would result in an 8.7 percent increase this year and a 3. 8 percent increase in 2015.
The second recommended modification would be a cap at $105 million for the General Transfer Fund, and a reduction by 6.1 percent for residential customers outside the city limits.
