Public responds to Austin Energy rate hike proposal at first outreach meeting

Biedrzycki said the monthly rates are too high and too much cost is shifted from industrial customers to residential customers, which is especially difficult for those on fixed incomes. She and several others questioned whether Austin Energy truly needs the amount of money the company has cited.

Austin Energy has not increased the base rate in 17 years, which the utility says is the culprit behind its $131 million deficit and is necessary to make ends meet.

The utility outlined four increased rate options for residential users to be considered by City Council. Depending on usage and which option is chosen, the rates will change a residential customer's bill by as much as 60 percent or as little as 5 percent. The base monthly fee would raise from $6 to $22.

In comparison, commercial and industrial users, depending on usage, face a change as high as 22 percent or as low as 1 percent.

Environmental activist Robin Rather received cheers and applause after questioning the point of a municipally owned energy company if it acts like a corporation concerned only with profits and salary bonuses. She added that targeting residents and raising rates in this manner is not characteristic of the Austin community, which spurred more accolades from the crowd.

Numerous representatives from various faiths also expressed concern the proposal favors industrial and commercial users. Under the proposal, churches would not be charged the reduced "sanctuary rate" but would be considered residential or commercial users.

"Don't penalize us by slapping us with a rate structure 3.5 to 4.5 times an ordinary business," Rev. John Wright of the First United Church said. "It's not like we can pass the costs on to [members]."

Wright and several church leaders described how this would leave the church without the resources to continue providing many of their ministries and services administered to those in need.

Another main complaint was that the proposal is not ecologically responsible.

Cyrus Reed, conservation director of the Sierra Club's Lone Star Chapter, emphasized how fixed rates are disincentive to conservation, and those who use the least need to be rewarded, while environmentalists and solar energy proponents warned against the lack of solar power rebate programs.

Rusty Osborne, who said he was a utility manager for several years at the University of Texas, shared how he was able to receive rebates after investing approximately $15,000 into his home to make it more energy-efficient.

"The proposal seems to be a rebate recovery," Osborne said.

State Rep. Paul Workman, R-Austin, testified on behalf of residents who live outside of city limits but are still within Austin Energy's coverage area, saying that he feels those residents should have a voice when it comes to a rate hike that will have an effect on their payments. The representative said the proposal is "nothing less than taxation without representation."

Rep. Workman instead urged a two-tier rate system for those outside the limits.

A second public hearing on the proposal has been set for 6 p.m. on Feb. 2 at City Hall.