Residential bill to increase by $6 on average

Austin Utilities customers can expect to see their water and electric bills increase next year.

The Austin Utilities Board of Commissioners voted Tuesday to increase electricity rates by 4.9 percent and water bills by about 6.9 percent — about $6 more per month on average for Austin residents.

That amounts to about $4.62 per month for electricity based on the 2013 billing rate for 700 kilowatt hours and $1.74 per month for water based on 600 cubic feet, about what an average Austin home uses, according to general manager Mark Nibaur.

Nibaur said the rate increase comes as Utilities deals with increased operating costs, infrastructure improvements, and decommissioning costs for the downtown Austin power plant.

In response, Utilities staff contracted out a review of its projected expenditures and revenues to determine the upcoming rate increases.

“We’ve had to raise our revenues to match those expenditures,” Nibaur said.

Gas rates will not increase along with water and electric rates. The changes take effect Jan. 1, 2014.

Austin Utilities increased its water and electric rates in 2013 by about $1.28 per month on average.

Nibaur said customers can contact Austin Utilities for tips and conservation programs to reduce energy costs as well.

Rate increases aren’t the only thing Utilties staff is working on, however. Staff will soon discuss plans to build a central facility for Austin Utilities operations and customer support staff. A proposed facility would be located at the Energy Park site and would allow consolidation of all utility functions at one location, according to a press release. The building could cost $15 to $20 million to build, and utilities staff have yet to decide on a construction date. Nibaur said staff have discussed a new building for years and will soon develop a plan for it.

Nibaur said Utilities staff are inviting public comment on the potential new building and rate increases at the next Utilities board meeting, at 4 p.m. Dec. 10 at City Hall.