In April, Austin Energy revealed a big ask: It wants to change its base rate structure for the first time since 2017.
A speaker opposed to the Austin Energy base rate increase testifies at a Nov. 15 City Council hearingfor the first time since 2017. Back then, the city-owned utility gave customers a discount; this time, it wants to do the opposite, saying the basic costs of operating AE require more money.
In a Council public hearing Nov. 15, AE rebutted those issues point by point. The hearing examiner sided with AE on many of these justifications, but notably rejected the use of 2021 as the"test year" for determining the revenue requirement, saying that AE"better explain Winter Storm Uri's impact." Council Member Kathie Tovo agreed, saying she was"compelled by interveners' testimony … it did seem to me that revenue on most years is higher.
Aside from large customers like NXP Semiconductors, which are balking at increased energy costs, stakeholder pushback to the rate proposal has come in two flavors: socioeconomic and environmental. Many agree with Coffman that the proposal shifts too much of AE's cost burden onto its low-income customers.
Early this summer, CM Ann Kitchen worked with labor leaders to try to extend those protections to workers on solar farms in West Texas, but Council's reaction was lukewarm and the issue was tabled."The other perspective was, 'These are people not working in our community,'" explains Kitchen."We're getting the benefits of what these workers are doing. So I don't think it's right to say we don't have to do what's fair.
“There’s some people that are going to get a 30% or more increase in their bill. It’s going to be low-income people, people who live alone, people who live in apartments.”"There is a lot of money in the Inflation Reduction Act that is available for communities that are looking to get out of coal, and particularly to buy down debt," says Reed."So there is potential that some of that money could be used in a negotiated settlement with LCRA.", met Monday, Nov.
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