Commercial Electric Rates & Line Items

Alignment with Industry Best Practices

Thank you for being an Austin Energy customer. The utility's commercial rate classes align with industry best practices and reflect what it costs to serve each class.

Customer Class

A customer class is a grouping of customers with similar energy-use characteristics. This is important because the cost to serve each class can vary substantially depending on service needs and electricity consumption. 

An industrial customer, for example, may receive electricity through a single high-voltage line extending directly from a substation. A small business, just like a home, typically receives its electricity through a series of lower-voltage lines, requiring more equipment to serve.

Austin Energy's ten commercial rate classes are:

Commercial Rate Classes by Demand
Commercial
Secondary Voltage 1 < 10 kW
Secondary Voltage 2 ≥ 10 < 300 kW
Secondary Voltage 3 ≥ 300 kW
Commercial and Industrial
Primary Voltage 1 < 3 MW
Primary Voltage 2 ≥ 3 < 20 MW
Primary Voltage 2 High Load Factor (HLF) ≥ 3 < 20 MW & ≥ 85% Load Factor
Primary Voltage 3 ≥ 20 MW
Primary Voltage 4 ≥ 20 MW & ≥ 85% Load Factor
Transmission Voltage 1  
Transmission Voltage 2 ≥ 20 MW & ≥ 85% Load Factor

Customer Charge

The Customer Charge helps to recover the costs of metering, billing, collections, and customer service incurred in managing customer accounts. These costs come from all customers, regardless of how much energy is used.

Customer Charge ($ per month)
Commercial
Secondary Voltage 1 < 10 kW $35.70
Secondary Voltage 2 ≥ 10 < 300 kW $56.10
Secondary Voltage 3 ≥ 300 kW $280.50
Commercial and Industrial
Primary Voltage 1 < 3 MW $306.00
Primary Voltage 2 ≥ 3 < 20 MW $2,550.00
Primary Voltage 2 HLF
≥ 3 < 20 MW & ≥ 85% LF
$6,424.98
Primary Voltage 3 ≥ 20 MW $2,805.00
Primary Voltage 4 ≥ 20 MW & ≥ 85% LF $20,400.00
Transmission Voltage 1   $3,570.00
Transmission Voltage 2 ≥ 20 MW & ≥ 85% LF $20,400.00

Demand Charge

"Demand" is the maximum flow of power a customer uses at any one time. It is measured in kilowatts by an electric demand meter. Demand charges are a significant part of many businesses' utility bills.

The Demand Charge recovers fixed costs related to building and maintaining Austin Energy's electric system. This charge is applied to all commercial customers with an average summer (June through September) peak demand of 10 kW and higher.

Using a demand charge best reflects costs to Austin Energy's system and provides an incentive for our customers to decrease their load by making energy efficiency improvements or by leveling their demand.

Demand Charge ($ per kW billed)
Commercial
Secondary Voltage 1 < 10 kW n/a
Secondary Voltage 2 ≥ 10 < 300 kW $9.18
Secondary Voltage 3 ≥ 300 kW $11.73
Commercial and Industrial
Primary Voltage 1 < 3 MW $11.73
Primary Voltage 2 ≥ 3 < 20 MW $14.28
Primary Voltage 2 HLF
≥ 3 < 20 MW & ≥ 85% LF
$13.69
Primary Voltage 3 ≥ 20 MW $15.17
Primary Voltage 4 ≥ 20 MW & ≥ 85% LF $14.70
Transmission Voltage 1   $13.26
Transmission Voltage 2 ≥ 20 MW & ≥ 85% LF $11.29

Energy Charge

The Energy Charge is generally designed to recover the variable costs of running the utility. It is billed on a cents per kilowatt-hour basis and varies by rate class.

Energy Charge (¢ per kWh billed)
Commercial
Secondary Voltage 1 < 10 kW 2.922¢
Secondary Voltage 2 ≥ 10 < 300 kW 1.804¢
Secondary Voltage 3 ≥ 300 kW 1.718¢
Commercial and Industrial
Primary Voltage 1 < 3 MW 0.111¢
Primary Voltage 2 ≥ 3 < 20 MW 0.019¢
Primary Voltage 2 HLF
≥ 3 < 20 MW & ≥ 85% LF
n/a
Primary Voltage 3  ≥ 20 MW 0.155¢
Primary Voltage 4 ≥ 20 MW & ≥ 85% LF n/a
Transmission Voltage 1   0.35¢
Transmission Voltage 2 ≥ 20 MW & ≥ 85% LF n/a

Power Supply Adjustment

The Power Supply Adjustment (PSA) is a dollar-for-dollar recovery that includes the cost of fuel for our power plants, the cost of electricity purchased from the grid, and any net charges experienced as Austin Energy sells power to the grid.

Austin Energy adjusts the Power Supply Adjustment annually to reflect the current price of fuel, projected Austin Energy power purchases, and any existing over/under recovery of those expenses.

Power Supply Adjustment (¢ per kWh)
Commercial
Secondary Voltage 1 < 10 kW 4.598¢
Secondary Voltage 2 ≥ 10 < 300 kW 4.598¢
Secondary Voltage 3 ≥ 300 kW 4.598¢
Commercial and Industrial
Primary Voltage 1 < 3 MW 4.472¢
Primary Voltage 2 ≥ 3 < 20 MW 4.472¢
Primary Voltage 2 HLF
≥ 3 < 20 MW & ≥ 85% LF
4.472¢
Primary Voltage 3 ≥ 20 MW 4.472¢
Primary Voltage 4 ≥ 20 MW & ≥ 85% LF 4.472¢
Transmission Voltage 1   4.416¢
Transmission Voltage 2 ≥ 20 MW & ≥ 85% LF 4.416¢

PSA Administrative Adjustment

As conditions require throughout the year, Austin Energy can make small changes to the Power Supply Adjustment. These changes allow the utility to better manage its financial health by responding to changing market conditions faster.

PSA Administrative Adjustment
Commercial
Secondary Voltage 1 < 10 kW 0.471¢
Secondary Voltage 2 ≥ 10 < 300 kW 0.471¢
Secondary Voltage 3 ≥ 300 kW 0.471¢
Commercial and Industrial
Primary Voltage 1 < 3 MW 0.458¢
Primary Voltage 2 ≥ 3 < 20 MW 0.458¢
Primary Voltage 2 HLF
≥ 3 < 20 MW & ≥ 85% LF
0.458¢
Primary Voltage 3 ≥ 20 MW 0.458¢
Primary Voltage 4 ≥ 20 MW & ≥ 85% LF 0.458¢
Transmission Voltage 1   0.453¢
Transmission Voltage 2 ≥ 20 MW & ≥ 85% LF 0.453¢

Regulatory Charge

The Regulatory Charge recovers Austin Energy’s costs for using the ERCOT wholesale transmission system and other regulatory fees and charges. Transmission costs are based on Austin Energy’s roughly 4% share of the ERCOT market and determined by the Public Utility Commission of Texas.

Regulatory Charge
  (¢ per kWh) ($ per kW billed)
Commercial
Secondary Voltage 1 < 10 kW 1.374¢ 0
Secondary Voltage 2 ≥ 10 < 300 kW 0 $3.83
Secondary Voltage 3 ≥ 300 kW 0 $3.83
Commercial and Industrial
Primary Voltage 1 < 3 MW 0 $3.75
Primary Voltage 2 ≥ 3 < 20 MW 0 $3.75
Primary Voltage 2 HLF
≥ 3 < 20 MW & ≥ 85% LF
 0 $3.75
Primary Voltage 3 ≥ 20 MW 0 $3.75
Primary Voltage 4 ≥ 20 MW & ≥ 85% LF 0 $3.75
Transmission Voltage 1   0 $3.71
Transmission Voltage 2 ≥ 20 MW & ≥ 85% LF 0 $3.71

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Date last reviewed or modified: 01/01/2024