Council Member Marc Duchen opposed or abstained on the majority of his colleagues’ amendments to next year’s city budget and voted against the overall budget. However, did try to raise Austin Energy’s income by proposing to increase its rates and fees. His proposal would have added up to $63 million in revenues. Neither the Mayor nor any other Council Member joined Duchen in voting for the amendment during Thursday’s budget adoption.
The utility has not kept pace with inflation and fell further behind after helping customers through the Covid pandemic. As a result, Austin Energy projects a $43 million shortfall in 2026. The utility proposed a small increase to the monthly customer fee from $15 a month to $16.20 a month for the 2025-26 budget. Customer Assistance Program (CAP) customers do not pay this fee.
Duchen’s motion did not spell out whether the utility was supposed to increase revenue by raising the customer charge further, by increasing rates for electricity used, or both.
Austin Energy has worked diligently to avoid shocking ratepayers with higher bills. This year, the utility is proposed, and Council approved, a reduction in the average customer’s monthly bill by $4.89, with a $7 reduction for CAP customers.
Two members of the Electric Utility Commission recently proposed maintaining the monthly fee at $15, but raising the amount customers pay for electric usage. Utility officials explained that they needed a reliable source of revenue, which the monthly fee provides. The commission rejected the proposal to change how that revenue would be raised.
Mayor Kirk Watson expressed strong support for Austin Energy’s plan. He noted that there is an inherent tension between providing necessary services and asking the citizens for more money. Austin Energy’s new rate schedule, he said, is the only item in the budget “where we’re actually decreasing (charges) on behalf of the ratepayer.”
District 6 Council Member Krista Laine provided the second to Duchen’s motion, although she voted against it when it was time to vote. Laine noted that her district and other areas of north Austin have more problems keeping the lights on than other parts of the city. “I know people who have moved out of our area… because of electric reliability,” she said, but she simply encouraged Austin Energy to move forward with its plans for improving service.
AE Interim General Manager Stuart Riley told Council Thursday that, compared to peer cities, they were spending more on tree trimming and had budgeted $30 million for vegetation management. On average, Riley said, Austin Energy has “better reliability numbers than peer cities,” although he acknowledged that “some customers are not experiencing that.”
The Austin Monitor’s work is made possible by donations from the community. Though our reporting covers donors from time to time, we are careful to keep business and editorial efforts separate while maintaining transparency. A complete list of donors is available here, and our code of ethics is explained here.