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