Austin Energy Rate Case at Work Session

[Atha Phillips]

On behalf of Council Member Pool, here are links to the documents we handed out today.

Council Member Pool’s proposal and chart http://assets.austintexas.gov/austincou ... 092047.pdf

Memo from Austin Energy’s outside council-Thomas Brocato http://assets.austintexas.gov/austincou ... 092224.pdf

Thanks,
Atha Phillips
Senior Policy Aide-D7

[Atha Phillips]

Colleagues,

I have asked Austin Energy to run a $13 customer charge. I am still proposing a gradual customer charge for 3 years, but with a $13 a month starting point, the two graduated options are: $13, $14, $15, OR $14, $15, $16.
Please note this proposal addresses the following issues identified by AE, the IHE, and the ICA.

1. Both options of this proposal begin with an assumed revenue of $31.3 million, we get there by holding the GFT at $115 million for 3 years and we will evaluate where we are during budget next year.

2. Both options of this proposal provide a gradual customer charge. This approach gets the utility to where they need to be financially and helps avoid rate shock.

3. Both maintain four tiers. The first two tiers capture the average customer and the rate is offered just below the cost of service.

4. Both maintain a sharp increase at Tiers 3 and 4 to incentivize conservation which will either get customers to change their habits or maybe invest in solar.

5. The extra revenue on both will go towards making the outside ratepayers whole and $3.5 million will go to expand the CAP program, which offers assistance to customers who cannot afford to pay their bill.

 $13 FY 23 Customer Charge Price per kWh Proposed Tiers
$0.04117 Tier 1: 0-300 kWh 
$0.05117  Tier 2: 301-900 kWh 
$0.07291 Tier 3: 901-2000 kWh 
$0.10565 Tier 4: 2001 + kWh 

 $14 FY 23 Customer Charge Price per kWh Proposed Tiers
$0.04002  Tier 1: 0-300 kWh 
$0.05002  Tier 2: 301-900 kWh 
 Alter amendment-New rate: 0.07285  $0.06502  Tier 3: 901-2000 kWh 
 Alter amendment-New rate: 0.10560  $0.08502  Tier 4: 2001 + kWh 

 $15 FY 24 Customer Charge Price per kWh Proposed Tiers
$0.03887  Tier 1: 0-300 kWh 
$0.04887  Tier 2: 301-900 kWh 
 Alter amendment-New rate: 0.07279  $0.06387  Tier 3: 901-2000 kWh 
 Alter amendment-New rate: 0.10555  $0.08387  Tier 4: 2001 + kWh 

 $16 FY 25 Customer Charge Price per kWh Proposed Tiers
$0.03771  Tier 1: 0-300 kWh 
$0.04771  Tier 2: 301-900 kWh 
 Alter amendment-New rate: 0.07274  $0.06271  Tier 3: 901-2000 kWh 
 Alter amendment-New rate: 0.1055 $0.08271  Tier 4: 2001 + kWh 

[Atha Phillips]

On behalf of Council Member Pool

Colleagues,

I have asked Austin Energy to run a scenario with a $13 customer charge. I am still proposing a gradual customer charge for 3 years, but with a $13 a month starting point, the two graduated options are: $13, $14, $15, OR $14, $15, $16.
Please note this proposal addresses the following issues identified by AE, the IHE, and the ICA.

1. Both options of this proposal begin with an assumed revenue of $31.3 million, we get there by holding the General Fund Transfer at $115 million for 3 years and we will evaluate where we are during budget next year.

2. Both options of this proposal provide a gradual customer charge. This approach gets the utility to where they need to be financially and helps avoid rate shock.

3. Both maintain four tiers. The first two tiers capture the average customer and the rate is offered just below the cost of service.

4. Both maintain a sharp increase at Tiers 3 and 4 to incentivize conservation which will either get customers to change their habits or maybe invest in solar.

5. The extra revenue on both will go towards making the outside ratepayers whole and $3.5 million will go to expand the CAP program, which offers assistance to customers who cannot afford to pay their utility bill.

Here is the link to my chart with a $13 customer charge:
http://assets.austintexas.gov/austincou ... 171758.pdf

Looking forward to our discussion on Thursday.

Leslie

[Atha Phillips]

Please ignore the 5:15 post, it is replaced by the 5:25 post.
Thanks,
Atha