Residential Electric Rates & Line Items

Rates for Customers Who Live Inside the City of Austin

Thank you for being an Austin Energy customer. Austin Energy, a service of the City of Austin, structures rates into five billing components (Customer Charge, Energy Charges, Power Supply Adjustment, Community Benefit Charge, and Regulatory Charge). 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.

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.

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 – 1,500 kWh   7.814¢
Tier 4: 1,501 – 2,500 kWh   9.314¢
Tier 5: > 2,500 kWh   10.814¢
Power Supply Adjustment(¢ per kWh) 2.877¢
Community Benefit Charges (¢ per kWh)
Customer Assistance Program 0.154¢
Service Area Street Lighting 0.124¢
Energy Efficiency Programs 0.238¢
Regulatory Charge (¢ per kWh) 1.206¢


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   $12.06
Community Benefit Charges   $5.16
Power Supply Adjustment   $28.77
City Sales Tax 1% $0.99
TOTAL BILL $100.15


  • 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 (kWh) 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 charges. 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. A kilowatt-hour is equal to the energy needed to run one 1,000-watt electric heater or ten 100-watt lights for one hour. A typical residential user consumes 860 kWh per month.

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

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 initiatives 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. Those who want to reduce their carbon footprint can choose these additional green power options from Austin Energy:

Learn More

Date last reviewed or modified: 11/1/21


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