Council members offer alternative energy rate plan
Three Austin City Council members unveiled an alternative energy rate plan May 14 that cuts the residential rates in Austin Energy's proposal by about half.
Council members Bill Spelman, Chris Riley and Sheryl Cole designed a system of rate hikes to occur in two phases in an effort to "reduce rate shock." Under the plan, the average household would see about an 8 percent increase compared with the 20 percent increase under AE's proposal.
Spelman said the utility expects to lose $89 million this year, and that Phase 1, which would begin Sept. 1, would generate about $71 million in an effort to slow the budget bleeding "just enough."
Spelman explained that the second phase would result in $35 million in additional revenue and would begin when AE can cut costs.
