Austin Energy outlined four main changes, including phasing in the rate increase in two-steps. The first phase would take place this year, while the second would be in October 2014.
During Phase 1, billing reserves would be deferred, and bill commencement would occur by June 1. Phase 2 would include rebuilding reserves and billing commencement by Oct. 1, 2014. This would result in an 8.7 percent increase this year and a 3. 8 percent increase in 2015.
The second recommended modification would be a cap at $105 million for the General Transfer Fund, and a reduction by 6.1 percent for residential customers outside the city limits.
The minimum residential charge would remain at $22, but the first 200 kilowatt-hours would be included in the $12 customer charge.
The last modification would be to remove the delivery charge for the small commercial rate group, which would include worship centers, and make a time-of-use fee optional.
In order to implement the rate increases by June, action must be taken by City Council in March. However, Mayor Lee Leffingwell expressed concern about whether members would be prepared enough to vote in March on a proposal that is complex, he said.
A public hearing on the rate increase proposal is set for 6 p.m. Feb. 9 at City Hall, 301 W. Second St.
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