Austin Energy: Your bill will likely go up, unless you conserve during this heat

AUSTIN (KXAN)-- The more 100+ degree days we hit here in Austin, the more people crank up their air to stay cool. With two new Austin Energy rate hikes now in effect, how might that impact your bill?

For the first time in 10 years, Austin Energy increased its base rates last year to cover the costs of a budget shortfall.

The customer charge has gone up from $10 to $13 a month. Keep in mind, that’s what you’re charged before you even flip on a switch.

Austin Energy also upped customers’ monthly bills by an average of $15 a month in November. This pass-through rate increase covers the cost of buying and transporting energy.

Austin Energy spokesperson Matt Mitchell told KXAN in the past that a typical resident consumes 860 kWh per month. So, both rate hikes add up to about an extra $24 per month for the average Austin Energy user.

Of course, that increases the more you crank up your air.

"Those rates have been in place for some time now many months. So, our customers are already seeing that as a part of their bill," Mitchell said.

Mitchell said last summer, record heat, combined with record natural gas prices, forced the pass-through rate hike that we're paying for this summer.

"The rates are a component of an energy bill. Absolutely. But the single biggest impact to that energy bill that our customers pay is the amount of energy that our customers use," he said.

Austin Energy spokespeople said conservation efforts can offset those rate hikes-- things like raising your thermostat by a few degrees and using fans, instead; closing the shades and curtains to keep out the direct sunlight; and avoid using large appliances such as dryers and ovens during the hottest parts of the day.

Mitchell said the agency evaluates its rates every fall, so the cost of natural gas, plus how much energy we use this summer, will factor into next summer's rates.

He said so far, it's too early to tell if rates will increase again, but there are a couple differences that should cool customers' nerves.

Mitchell said first, this year's rate hikes include some insulation; the agency built in wiggle room so that customers would be less likely to face another rate shock next year.

He also said that natural gas prices are much lower so far this year.

Still, he said it's too early to tell if rates will increase again.

Mitchell said Austin Energy has resources for its customers.

"For anyone who's concerned about paying their bills, please reach out to us. We have customer assistance programs that may be able to help," Mitchell said.

You can also save some money by letting Austin Energy adjust your thermostat.

It's offering an annual rebate for those who are enrolled in the Power Partner Thermostats program. The program allows Austin Energy to adjust your smart thermostat by two to four degrees on high energy use days.

Customers will receive a $50 bill credit for each new smart thermostat they enroll.

Customers in the program will also get a $25 bill credit each year.

But it's important to note that joining that program doesn't mean you lose control over your thermostat; you can always override the setting by simply adjusting the temperature back to where you like it.