Austin Utilities officials announced on Wednesday that electric and water rates will go up next year.

Electric rates will be adjusted with a 1½ percent increase and water rates will be adjusted with a 4.9 percent increase, according to a news release.

There will be no increase in natural gas rates.

Residential customers will see an average bill increase of $2.84 per month, while small to mid-sized business customers can expect to see increases in the range of $15.72 -$86.28.

The rate changes will start with the January 2018 utility bill.

The increases are part of the 2018 Austin Utilities budget, approved by the Austin Utilities Board of Commissioners at its regular board meeting Tuesday.

The adjustments are the result of increasing wholesale energy costs and the continued need to bring aging utility infrastructure up to date, according to a news release.

Utility staff confirmed the need for rate adjustments through a study performed in September 2016.

“We understand the financial impact these increases have on our customers, and we are working hard to keep costs down,” said Austin Utilities General Manager Mark Nibaur. “Reliability is the number one concern of our customers and keeping our infrastructure up to date allows us to provide reliable service.”

Customers will see a change as costs are shifted from the energy charge to the “customer charge,” a set charge for all customers regardless of energy usage. This is to allow Austin Utilities to fairly recover distribution costs from all customers. This charge covers the cost to maintain facilities and infrastructure, including items such as meters, distribution poles, piping, safety equipment, miscellaneous supplies, and account administration.

Austin Utilities customers can take advantage of the Conserve and Save rebate program, which offers a full range of rebates on equipment designed to help customers reduce their energy bills. Customers may also be eligible for budget billing that allows for even payments each month.

For more information, contact the Austin Utilities Energy Service Department at 507-433-8886