For decades, the City of Austin Utilities-Customer Assistance Program, administered by Austin Energy, has provided financial relief to residents with limited incomes who are struggling with utility costs. What began in the early ’80s as a modest initiative has since evolved into a far-reaching Customer Assistance Discount Program.

“We’ve grown from having about 4,000 to 5,000 customers in 2011 to almost 63,000 households who are receiving this benefit today,” customer solutions manager Ronnie Mendoza said. “Our target is to get to 83,000 households by June.”

In 2011, Austin Energy underwent its first formal rate case, meaning they sought regulatory approval to adjust customer rates. As part of this process, an advisor was appointed to advocate for financially vulnerable customers, ultimately leading to an expansion of the discount program.

To fund this initiative, the city introduced a Community Benefit Charge—a small fee applied to all Austin Energy customers. This charge now supports not only the discount program but also emergency assistance and medical vulnerability aid.

“Now that we had the money to serve the population, [the question became,] ‘How do we get these customers in the door,’” Mendoza said.

The solution lay in simplifying the enrollment process.

Utility discount program in Austin employees smile

The impact of automatic enrollment

To remove bureaucratic hurdles, Austin Energy established a data-sharing agreement with the Texas Department of Health and Human Services. By leveraging state records, a third-party vendor cross-references Austin Energy’s residential customer list with individuals already enrolled in benefits such as Medicaid or Supplemental Nutrition Assistance Program.

“We thought, ‘Why don't we remove that barrier immediately to give them this benefit,’” Mendoza said.

The shift to automatic enrollment has dramatically increased participation. At the time of the rate case, 97% of customers had to manually apply. Today, that same percentage is enrolled automatically. This model, which has earned national recognition, ensures that those most in need receive assistance without the burden of additional paperwork.

For individuals who do not match state records but still meet eligibility criteria, an application process remains available. Additionally, those who prefer not to participate may opt out.

Additional benefits and community support

Beyond financial relief, Austin Energy integrates additional services, such as an educational component aimed at long-term energy conservation.

An eight-part curriculum, developed with input from a community steering committee, provides enrollees with guidance on reducing energy consumption, reading utility bills and implementing conservation strategies.

“It's a two-and-a-half-hour course,” Mendoza said. “We have in-person classes, but we also offer the online courses as well. Whatever the case may be, customers can take the course at their own pace.”

City of Austin Utilities employee talks to community members

Powering stability for Austin residents

For Mendoza, his work extends beyond numbers and logistics; it’s about impact.

“This has been my passion project and my legacy project,” Mendoza said.

As the program expands, its core mission remains the same: providing stability for Austin residents by keeping their homes powered, comfortable and secure.

Community members who want to support the initiative can contribute by rounding up their utility bills or making direct donations, which helps ensure that assistance reaches those who need it most.

To learn more about Austin Energy’s discount program or to apply for benefits, visit their website today.

The above story was produced by Multi Platform Journalist Sydney Heller with Community Impact's Storytelling team with information solely provided by the local business as part of their "sponsored content" purchase through our advertising team.