On Wednesday, Austin Energy proposed a rate increase to the city council. If approved, this would be the first rate increase since 1994. Austin Energy faces a budget deficit of $9.3 million next year, and a deficit of $177 million by 2013 if the current rates stay the same. Austin Energy’s expenses are mounting due to conservation initiatives, installing smart meters, and the cost of new transmission lines.
While Austin Energy has made it clear that a rate increase is needed, it is unclear how much this increase will be. However, the rate restructuring would be a two-year process eventually needing state approval.
Links to articles with additional information about the financial state of Austin Energy can be found here and here.
Friday, November 6, 2009
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