Residential Electric Rates & Line Items

Rates for Customers Who Live Inside the City of Austin

City of Austin Utility Bill Relief

As our community comes together to respond to the concerns of COVID-19, the City has taken steps to ensure customers have uninterrupted access to utility services and that customers experiencing hardships due to COVID-19 can get immediate utility bill help.

These measures are in effect through October 31, 2020:

  • Regulatory electric charges are reduced by 32% for residential and commercial customers, which will result in about a 4% reduction of the total bill. This change went into effect April 9, 2020 for residential customers and on May 1, 2020 for commercial customers.
  • Rates for all residential electric customers are set at 7.814 cents/kWh for usage above 1,000 kWh.
  • Residential water rates (Tiers 1-3) and wastewater (Tiers 1-2) volume are reduced by 10%.

These measures are in effect indefinitely or so long as funds remain:

Normal billing operations, including the assessment of late fees, will resume beginning in November 2020. Disconnections for non-payment are expected to resume in early 2021.

Customers who are having difficulty paying their utility bill should contact City of Austin Utilities at 512-494-9400 as soon as possible.

Get more information about City of Austin Bill Relief

Thank you for being an Austin Energy customer. Austin Energy, a service of the City of Austin, structures rates into five billing components. These charges are factored into your electric bill each month. Taken together, Austin Energy’s goal is to be in the lower 50% of residential costs for similar utilities in Texas.

  • Community Benefit Charges — These charges help pay for City services that fund street lighting, customer assistance, and energy efficiency programs. 
     
  • Customer Charge — This charge helps cover the costs for billing, metering, collections, customer service, and other account management costs.
     
  • Power Supply Adjustment — Austin Energy charges customers what it costs to provide power to the community. The Power Supply Adjustment recovers the net costs of the kilowatt-hours used by customers. It covers fuel for our power plants, the cost of electricity purchased from the grid, and any net revenues (or losses) experienced as Austin Energy produces and sells power to the grid. The Power Supply Adjustment is adjusted to reflect the current price of fuel and projected Austin Energy power purchases.
     
  • Regulatory Charge — The Regulatory Charge recovers dollar-for-dollar Austin Energy’s share of the costs of managing, using, and maintaining the ERCOT-wide transmission grid, as well as other regulatory fees and penalties. Transmission charges and fees are based on Austin Energy’s share of the summer ERCOT peak demand — about 4% of the statewide total. These costs are reviewed, approved, and apportioned under rules established by the Public Utility Commission of Texas.
     
  • Energy Charge — Austin Energy sells electricity to residential customers in kilowatt-hours (kWh). A kilowatt-hour is the energy needed to run one 1,000-watt electric heater or ten 100-watt lights for one hour. An average residential user, for example, consumes 860 kWh per month.

    Electric rates for customers inside the City of Austin (approximately 85% of customers) are organized into five tiers. When a customer’s energy usage increases from tier to tier, the rate per kilowatt-hour also increases. This financial incentive encourages the efficient use of electricity and rewards lower use.

Inside City of Austin Rates: Five-Tier Rate Structure

Austin Energy has a five-tier rate structure that rewards customers who use less electricity with lower rates. With the five-tier rate structure, you can see how lowering your electric use can result in lower bills. You can lower your electric usage by modifying your energy use or by making energy-efficiency improvements to your home.

As part of Austin Energy’s response to COVID-19, Tiers four and five have been repriced at the Tier three level.

Austin Energy Residential Electric Rates
Billing Components   Inside Residential
Customer Charge ($ per month) $10.00
Energy Charge (¢ per kWh)
Tier 1: 0 – 500 kWh   2.801¢
Tier 2: 501 – 1,000 kWh   5.832¢
Tier 3: >1,000 kWh   7.814¢
Tier 4: 1,501 – 2,500 kWh Rate suspended due to COVID-19   9.314¢
Tier 5: > 2,500 kWh Rate suspended due to COVID-19   10.814¢
Power Supply Adjustment (¢ per kWh) 3.139¢
Community Benefit Charges (¢ per kWh)
Customer Assistance Program 0.154¢
Service Area Street Lighting 0.124¢
Energy Efficiency Programs 0.335¢
Regulatory Charge (¢ per kWh) Charge reduced due to COVID-19 1.252¢ 0.851¢

 

Example: Rates for Inside City of Austin Customers  - 1,000 kWh
Line Item kWh Per Tier Charges
Customer Charge $10.00
Tier 1 500 $14.01
Tier 2 500 $29.16
Tier 3 0 $0.00
Tier 4 0 $0.00
Tier 5 0 $0.00
Regulatory Charges   $8.51
Community Benefit Charges   $6.13
Power Supply Adjustment   $31.39
City Sales Tax 1% $0.99
TOTAL BILL $100.19

 


Residential electric bills from Austin Energy tend to be lower when compared to most other utilities in Texas as a result of lower kilowatt-hour use. The lower use comes from energy efficiency measures, higher building standards, and other measures supported by Austin Energy.

Browse our many energy efficiency tips, tools, and rebates

Renewable Energy Options

Many customers are concerned about the carbon impact of their electric power. In FY 2018, at least 37.5% of Austin Energy’s electric power came from wind, solar, and other renewable resources.  

Customers who want to do even more to reduce their carbon footprint can choose these additional green power options from Austin Energy:

Learn More

Date last reviewed or modified: 4/9/20

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