Electric Rate Comparison: Austin Energy and Texas

The following table and graph are based on the latest EIA data sources available (2010 for Austin & 2011 for Texas) and project by straight line forward to 2012 such that Austin Energy’s 2012 average rate before any rate increase is shown to be the same as 2010. The 2012 projection for Texas equals 2011 data from EIA. In actuality, due to changes in the fuel charge and transmission rider, AE’s 2012 rate is likely to be slightly higher than in 2010. Due to sharply lower natural gas prices in 2012, Texas average electric rates are likely to continue their downward trend in 2012 (This expectation is also supported by preliminary EIA data for the first 2 months of 2012)

Austin Energy has proposed a phased rate increase of $127 million (12.5% overall rate increase) which envisions $71 million is assessed in 2012 (a 7% initial average rate increase).

Even the initial phase of Austin Energy’s proposed rate increase (7%) is almost certain to bust the City’s “Affordability Goal” to have Austin Energy’s rates remain in the bottom 50% of rates in Texas, since even a conservative projection of current rates suggest Texas is at most 4.4% higher than Austin Energy’s average electric rate..

From City Financial Forecast Update, May 9, 2012.

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