Rates for Outside the City of Austin

Outside Rates: Three-Tier Rate Structure

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 from now until September 30, 2020:

  • All utility disconnects for non-payment are suspended and all late fees are waived.
  • All customers in need will be placed on payment arrangements.
  • 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 for residential customers is in effect immediately 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%.
  • Customer Assistance Program (CAP) Utility Bill Discounts on electric charges are increased from 10% to 15%. Customers with household incomes at or below 200% of the Federal Poverty Level may receive the CAP discount.
  • The Financial Support Plus 1 fund has received additional funding. Customers who experience financial hardship due to the effects of COVID-19 are eligible for the Plus 1 Program.

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.

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.

Tier 3 has been reduced as part of Austin Energy’s response to COVID-19.

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 - Rate reduced due to COVID-19   7.868¢ 7.814¢
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) Charge reduced due to COVID-19 1.252 0.851¢


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   $8.51
Community Benefit Charges   $4.41
Power Supply Adjustment   $31.39
City Sales Tax 1% $1.01


  • 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 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.
  • 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.
  • Energy Charge — Austin Energy sells electricity to residential customers in units called 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 outside the City of Austin (approximately 15% of customers) are organized into three 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.

  • Community Benefit Charges — These charges help pay for services that fund customer assistance and energy efficiency programs.

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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