Stop Austin Energy CAP Discount for Tier 5

[Don Zimmerman]

CM Colleagues,

Here is the draft resolution to remove “CAP Discounts” for Tier 5 that was mentioned in the Austin Energy Oversight Committee yesterday (25-Feb-16). Please let me know if you are interested in co-sponsoring to bring before the full Council.



Whereas, the vast majority of Austinites receive power from Austin Energy; and

Whereas, the Austin Energy Customer Assistance Program (CAP) was created to help customers facing temporary and long-term financial difficulties; and

Whereas, the “CAP Discounts” program is for “Customers on low or fixed incomes who participate in certain state, federal, or local assistance programs”; and

Whereas, conserving energy is a high priority for the City of Austin; and

Whereas, the current billing structure has five progressive tiers based on electricity usage with Tier 5 rates being charged when more than 2,500 kWh being used in a billing cycle; and

Whereas, in 2014, the average monthly summer consumption was at 1,183 kWh; and

Whereas, less than 2% of all CAP bills for 2014 were billed for more than 2,500 kWh; and

Whereas, in 2015, over 5% of the “CAP Discount” funding ($543,849) was for the portion of a customer’s bill for more than 2,500 kWh; NOW THEREFORE,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF AUSTIN:

That the Austin City Council directs the City Manager to remove the “CAP Discounts” program for Tier 5 rates, but the “CAP Discounts” would still apply to Tiers 1-4, even for customers using more than 2,500 kWh in a given billing cycle.