Austin Energy (AE) finally settled on a new rate structure for all customers. In general, most, if not all AE customers, will see a decrease in energy costs. For commercial accounts, the reduction will be most pronounced during the summer months as AE is eliminating the seasonality charges for peak demand and energy charges. The new rates will be implemented over a two month period starting with the November 2016 AE invoice.
The biggest change, in our view, is the changes to the commercial customer rate classes. Please recall that the commercial rate applicable to your property depends on which “demand class” your property belongs to as measured (metered) by summer month’s peak demand (kW).
The bulk of Austin Energy’s commercial customers fall into two rate classes based on peak demand. Smaller commercial properties are typical in the 10>50kW rate class and larger commercial properties in the 50kW and greater rate class. With the new rate plan the commercial rate classes are changed per the chart above.
Please note that AE has not yet published the approved rate plan but we believe the information provided above to be correct. Unfortunately, it is not all good news as some components of the AE rate plan will result in increases of certain charges. Furthermore, it is our view that the recent increase in energy prices, specifically natural gas prices will result in AE having to increase the fuel charge (Power Supply Adjustment) in 2017.
If you want to find out more about Austin Energy’s new rate structure for commercial properties the Building Owners and Managers Association (BOMA) Austin, who was a key player in the rate discussions, is hosting a seminar on October 13th at Frost Bank where Blue Ocean will be talking about the new rates, load factor, peak demand and managing your electric bills. The seminar is open to all.