Austin Energy 'softens' rate increase

AUSTIN (KXAN) - Austin Energy pitched a re-vamped rate plan to the city officials Thursday. The utility now has a $77 million deficit and is seeking the first increase in its electric rates in more than 17 years.

AE officials outlined changes that aim to soften the impact of the rate increase while also raising revenue. That would mean an 8.7 percent increase this year and a 3.4 percent increase in 2015 for most customers.

They would remove certain set fees for small worship centers and small businesses.

Originally, the utility wanted the new rate by April, but the new proposal could delay it until June.

A full detail look at the proposal can be found here.

The City Council will discuss the proposed change in a work session on Tuesday. There will be a second public hearing during its regular meeting next Thursday.