• In-Depth: The rising price of power

How Austin Energy's tiered billing affects you:

  • 1,000 kilowatts a month or less: You pay $5 more
  • 2,500+ kilowatts: Your price per kilowatt hour rises 19 percent
  • 3,000+ kilowatts: Your price per kilowatt hour rises 24 percent
  • Bottom line: The more you use, the more you pay.
  • Source: Austin Energy
Advertisement

Energy bill complaints dominate KXAN Tipline calls

Consumption jumped despite warmer winter weather

Updated: Tuesday, 26 Feb 2013, 6:59 PM CST
Published : Tuesday, 26 Feb 2013, 5:31 PM CST

AUSTIN (KXAN) - The KXAN Investigates team has been flooded with calls and emails about their Austin Energy bills doubling, even tripling following our news reports on billing spikes over the last two weeks. 

So, KXAN dug deeper and went straight to the top of Austin Energy for answers.

On average, it was warmer in December and January than in years past. So why do so many people seem to have a problem with their electric bill?  Our investigation found these warm winter temperatures can actually be deceiving for those thinking they’re using less energy.

“I was shocked,” Donna Kay told KXAN after looking at her January bill from Austin Energy. “I thought it was incorrect.”

Kay said she hasn’t had a bill higher than $281 for all of 2012.  Her bill for the period of Dec. 20, 2012, through Jan. 25, 2013, was $581. Austin Energy told her the increase was because she and husband used more kilowatts during the billing period, she said. 

“You know the usage shouldn't have been that high,” said Dean Sharp after he also experienced a higher-than-normal bill for the same period as Kay. 

Sharp scratched his head as he looked over the last 15 months of his energy bills.    

Henry Bockelman has a similar story.

“I said, ‘these people have lost their minds,'” Bockelman told KXAN after seeing a big spike in his January bill. 

Kay, Sharp, and Bockelman are among the numerous people who've called and emailed KXAN about their Austin Energy bills.  They have told KXAN they’ve seen bills double, triple, and even quadruple the amount from the month before.

The callers and emailers all say they’ve gotten the same explanation:  “It was cold and people used more heat.”

“We had periods of cold weather during December and January that I think frankly some of us sort of forget about,” the city-owned utility's spokesman Ed Clarke said during an interview for a recent KXAN report. 

The Weather Team weighs in

So we decided to get some perspective from our KXAN Weather Team and compare this winter to years past to determine just how cold it’s been.

Our KXAN weather team’s data shows December 2012 was the ninth warmest December in more than 150 years. In fact, the entire month of December was the fourth warmest average temperature on record, at 68.9 degrees. 

And January's average temperature was 2.1 degrees warmer than the normal. 

However, the overall monthly averages of these last two winter months have been 3 degrees cooler than December of 2011 and January of 2013.  But many Austin Energy customers say they haven’t used their heaters much and are baffled by the billing spikes.

“We had the furnace turned-off for so much of that month,” said Dave Pedley, who claims his heater was turned off for almost 2 weeks straight in December.   

Pedley has lived in the same house for 17 years knows how to read his electric bill. He immediately noticed his bill was $158 more than the previous month, but Pedley also looks directly at kilowatt hours used per day. 

“The average per day use was 72 kilowatt hours and I can't understand how that can be,” said Pedley.

The word from a top Austin Energy exec

So we took the electric bills from Donna Kay, Dean Sharp, Henry Bockelman, and Dave Pedley straight to the top of Austin Energy.  Chief Operating Officer Cheryl Mele says their bills are accurate.

“We can clearly see that on the days when the temperature is in the 70’s in the afternoons their consumption is much less than it is on the days where it never climbs above 60,” said Mele. 

Austin Energy says while Dave Pedley may have had his furnace off for a few days early in the month, his billing cycle didn't start until Dec. 22 and ran through Jan. 26, which is a longer 35 day billing cycle. During that time, there were 20 days with overnight temperatures below 40 degrees and that, Austin Energy says, is why Pedley's bill shows an average daily use of 72.9 kilowatt hours.

Pain, confusion for ratepayers

The billing confusion is a much more serious situation for folks like Henry Bockelman, living on a fixed income.

Bockelman spent nearly two decades as a power-plant operator so he too knows a little about electricity. He says his energy bills average about $65 a month for his small 2 bedroom apartment.

He said he doesn’t recall getting a bill higher than $100 in the three years he’s lived there.  But Bockelman says when he got his latest bill for $226, showing he used 1936 kilowatt hours he thought someone was tapping in to his electricity.

“I've been retired for 21 years,” said Bockelman. “This is the first time I've worried about money since we retired and it just knocks a hole in your planning and the way you're going to make your budget work,” he continued.

Austin Energy showed KXAN Bockelman’s kilowatt hour usage for every day in his billing cycle.  While Henry claims to set the thermostat low, Austin Energy claims the cold days in his billing cycle led to the increased energy consumption. 

Bockelman’s billing cycle was also 35 days, from Dec, 18 through

Jan. 22. Twenty-three of those days had overnight lows below 40 degrees and that, Austin Energy says, is what triggered the drastic increase in Bockelman’s kilowatt hours used in his small apartment.

“He was likely to have seen about $25 or so that would have been associated with the increase in rates,” said Mele.  “But the rest was based on a longer billing cycle and a little bit more daily consumption,” Mele continued.

Billing cycle variables

Austin Energy says customers should know billing dates and billing cycles aren’t the same for all customers and there are actually 20 different monthly billing cycles, each starting and ending on a different day of the month. So, Mele says if you had a 35-day billing cycle from Austin Energy your next one will be less. 

Because of the high number of complaints coming in to KXAN, we also asked Austin Energy about possible glitches in the meter-reading or the software that interacts with their new billing system and rate structure.

Austin Energy says since Jan. 1, they have checked more than 100 meters for accuracy and only one was a bit off, but it was actually favoring the homeowner.  The public utility also claims the new smart meters are the most accurate technology ever available to the electric utility industry.

About 85 percent of the Austin Energy customers use 1,000 kilowats hours or less a month. The rate hike adds $5 a month to those bills.

But the new "tier" system affects your bill even more. Go over 2,500 kilowat hours, and your bill will jump 19 percent. At 3,000 kilowatt hours, it jumps 24 percent.

The more you use, and go up the tier,  the more you pay per kilowat hour.

If you question your Austin Energy bill you can call 494-9400 to have a customer service representative to go over your kilowatt hour usage.  You can also arrange for a technician to check your meter.  Austin Energy says customers can also get a home energy efficiency audit through its "power saver" program .

If you are not an Austin Energy customer, check with your energy service provider about help getting a home energy efficiency audit. 

You can also learn more about energy efficiency audits on the U.S. Department of Energy's website.

KXAN checked with other Central Texas power companies outside of Austin Energy's service area.  TXU Energy, Reliant Energy, and the Bluebonnet Electric Cooperative all say they too have seen overall increases in energy consumption during this warm winter. 

Only the Pedernales Electric Cooperative says it’s seen a decrease in energy consumption this winter.


Opinions that are derogatory, attack other users or are offensive in nature may be removed. KXAN is not responsible for the content posted in this comment section. We reserve the right to remove any offensive or off-topic remark or thread. To mark a comment for review by a moderator, click "Report Abuse."

 

comments powered by Disqus

Advertisement
  • Most Popular Stories
    No Stories Available
Advertisement
  • KXAN Tipline, 512-703-5255
'Dream vacation' just that -- a dream
'Dream vacation' just that -- a dream

The Better Business Bureau warns about vacation prizes that …

Know your rights on insurance rates
Know your rights on insurance rates

Central Texas are getting hit with higher insurance premiums. …

High city water bills are refunded
High city water bills are refunded

Several Austin Water Utility customers who had unusual spikes …

Customers caught in kitchen nightmare
Customers caught in kitchen nightmare

Many homeowners dream of a custom remodeled kitchen.  But that …

Couple gets some relief over water bill
Couple gets some relief over water bill

The couple who was wrangling with Austin Water Utilities over a…

Advertisement

Site Tools