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 customer 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 starting from a substation.

Austin Energy's nine 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 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. Austin Energy incurs these costs for all customers, regardless of how much energy is used. The Customer Charge is assessed on a monthly basis.

Customer Charge ($ per month)
Commercial
Secondary Voltage 1 < 10 kW $18.00
Secondary Voltage 2 ≥ 10 < 300 kW $27.50
Secondary Voltage 3 ≥ 300 kW $71.50
Commercial and Industrial
Primary Voltage 1 < 3 MW $275.00
Primary Voltage 2 ≥ 3 < 20 MW $2,200.00
Primary Voltage 3 ≥ 20 MW $2,750.00
Primary Voltage 4 ≥ 20 MW & ≥ 85% LF $11,000.00
Transmission Voltage 1   $2,750.00
Transmission Voltage 2 ≥ 20 MW & ≥ 85% LF $21,120.00

Electric Delivery

The Electric Delivery Charge helps to recover the operating, maintenance, and capital costs of our distribution system including poles, wires, transformers, and Smart Grid technology. This charge only applies to customers who are assessed demand charges.

Electric Delivery ($ per kW billed)
Commercial
Secondary Voltage 1 < 10 kW n/a
Secondary Voltage 2 ≥ 10 < 300 kW $4.50
Secondary Voltage 3 ≥ 300 kW $4.50
Commercial and Industrial
Primary Voltage 1 < 3 MW $4.50
Primary Voltage 2 ≥ 3 < 20 MW $4.50
Primary Voltage 3 ≥ 20 MW $4.50
Primary Voltage 4 ≥ 20 MW & ≥ 85% LF $4.50
Transmission Voltage 1   n/a
Transmission Voltage 2 ≥ 20 MW  & ≥ 85% LF n/a

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 a business's utility bill.

The Demand Charge recovers fixed power production costs related to building and maintaining Austin Energy's electric supply system. A Demand 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 the way in which costs on the Austin Energy system are incurred 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 $4.19
Secondary Voltage 3 ≥ 300 kW $6.40
Commercial and Industrial
Primary Voltage 1 < 3 MW $7.00
Primary Voltage 2 ≥ 3 < 20 MW $9.17
Primary Voltage 3 ≥ 20 MW $10.37
Primary Voltage 4 ≥ 20 MW & ≥ 85% LF $10.20
Transmission Voltage 1   $12.00
Transmission Voltage 2 ≥ 20 MW & ≥ 85% LF $11.15

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. The Energy Charge for commercial customers outside the City of Austin is less than or equal to the Energy Charge for comparable commercial customers inside the City of Austin.

Energy Charge (¢ per kWh billed)
  Inside Outside
Commercial
Secondary Voltage 1 < 10 kW 4.802¢ 4.802¢
Secondary Voltage 2 ≥ 10 < 300 kW 2.421¢ 2.356¢
Secondary Voltage 3 ≥ 300 kW 1.955¢ 1.902¢
Commercial and Industrial
Primary Voltage 1 < 3 MW 0.053¢ 0.052¢
Primary Voltage 2 ≥ 3 < 20 MW 0.052¢ 0.051¢
Primary Voltage 3  ≥ 20 MW 0.152¢ 0.152¢
Primary Voltage 4 ≥ 20 MW & ≥ 85% LF 0.0¢ 0.0¢
Transmission Voltage 1   0.500¢ 0.500¢
Transmission Voltage 2 ≥ 20 MW & ≥ 85% LF 0.0¢ 0.0¢

Power Supply Adjustment

The Power Supply Adjustment 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 changes experienced as Austin Energy sells power to the grid.

Austin Energy adjusts the Power Supply Adjustment to reflect the current price of fuel, projected Austin Energy power purchases, and any existing over/under recovery of those expenses. The utility can make small adjustments to this charge throughout the year, as conditions require.

Power Supply Adjustment (¢ per kWh)
   
Commercial
Secondary Voltage 1 < 10 kW 4.371¢
Secondary Voltage 2 ≥ 10 < 300 kW 4.371¢
Secondary Voltage 3 ≥ 300 kW 4.371¢
Commercial and Industrial
Primary Voltage 1 < 3 MW 4.271¢
Primary Voltage 2 ≥ 3 < 20 MW 4.271¢
Primary Voltage 3 ≥ 20 MW 4.271¢
Primary Voltage 4 ≥ 20 MW & ≥ 85% LF 4.271¢
Transmission Voltage 1   4.217¢
Transmission Voltage 2 ≥ 20 MW & ≥ 85% LF 4.217¢

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 1.491¢ 0
Secondary Voltage 2 ≥ 10 < 300 kW 0 $4.15
Secondary Voltage 3 ≥ 300 kW 0 $4.15
Commercial and Industrial
Primary Voltage 1 < 3 MW 0 $4.07
Primary Voltage 2 ≥ 3 < 20 MW 0 $4.07
Primary Voltage 3 ≥ 20 MW 0 $4.07
Primary Voltage 4 ≥ 20 MW & ≥ 85% LF 0 $4.07
Transmission Voltage 1   0 $4.02
Transmission Voltage 2 ≥ 20 MW & ≥ 85% LF 0 $4.02

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Date last reviewed or modified: 11/01/2022