Proposed increase to help pay for new facility

The Austin Utilities Board of Directors officially approved the upcoming utility rate increases to pay for a new central administrative facility during a public meeting Monday.

Electric rates will increase 1.77 percent, gas rates will increase 3.5 percent and water rates will increase 6.9 percent starting Jan. 1.

Utilities officials previously estimated an average increase of $8.18 in utilities payments per month for residential customers and a 1 to 3 percent increase per month for commercial properties.

The rate increase goes to pay for a new $18.6 million central administrative facility for Austin Utilities.

Utilities officials are looking to consolidate office operations, including customer service, staff operations and administrative duties, from the seven buildings utilities workers use.

Though Austin Utilities has for years looked at options to improve its efficiencies — utilities officials bought 23 acres south of Todd Park in 2009 to potentially host a new building — General Manager Mark Nibaur previously said the time wasn’t right to move forward until utilities officials decommissioned the downtown power plant and looked at its options.

A new building would solve several safety and regulation issues for the utilities company. Austin Utilities doesn’t have enough space to store essential supplies like water and gas pipes indoors, according to Nibaur, and there are numerous inefficiencies throughout utilities operations that could be eliminated through a new facility. Utilities officials estimate the company could save $2.5 million over the next 10 years with a new facility. The new plans would also disaster-proof utilities operations, which Nibaur said was an important improvement.