Rates for Outside the City of Austin

Outside Rates: Three-Tier Rate Structure

Austin Energy customers who live outside the City of Austin pay rates that are organized in a three-tier structure that rewards customers who use less electricity with lower rates.

With the three-tier rate structure, you can see how lowering your electric usage 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.

Learn how to save money with whole-home energy improvements

Austin Energy Outside City of Austin Residential Rates
Billing Components   Outside Residential Rates
Customer Charge ($ per month)   $10.00
Energy Charge (¢ per kWh)
Tier 1: 0 – 500 kWh   3.700¢
Tier 2: 501 – 1,000 kWh   5.600¢
Tier 3: >1,000 kWh   7.868¢
Power Supply Adjustment (¢ per kWh) 3.139¢
Community Benefit Charges (¢ per kWh)
Customer Assistance Program 0.106¢
Service Area Street Lighting n/a
Energy Efficiency Programs 0.335¢
Regulatory Charge (¢ per kWh) 1.252


Example: Rates for Outside City of Austin Customers - 1,000 kWh 
Line Item kWh Per Tier Charges
Customer Charge $10.00
Tier 1 500 $18.50
Tier 2 500 $28.00
Tier 3 0 $0.00
Regulatory Charges   $12.52
Community Benefit Charges   $4.41
Power Supply Adjustment   $31.39
City Sales Tax 1% $1.02


  • Customer Charge — This charge helps cover the costs for billing, metering, collections, customer service, and other account management costs.
  • Regulatory Charge — The Regulatory Charge recovers dollar-for-dollar Austin Energy’s share of the statewide costs of managing, using, and maintaining the transmission grid, as well as other regulatory fees and penalties. Transmission charges and fees are based on Austin Energy’s share of the summer statewide 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.
  • Power Supply Adjustment — The Power Supply Adjustment recovers dollar-for-dollar the net costs of the kilowatt-hours used by customers. Austin Energy makes no profit on this dollar-for-dollar pass-through charge. 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.

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Date last reviewed or modified: 11/1/19

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