Rate hike plan worries council, mayor

AUSTIN (KXAN) - The Austin City Council held a work session on Tuesday morning to discuss the proposed Austin Energy rate increase.

Mayor Lee Leffingwell and other council members have expressed concerns about the way the proposal is structured and worry it would be putting a bigger burden on the residential customers.

The biggest question that must be answered is how much money Austin Energy needs.

“Everyone has to accept the number,” said Leffingwell. “We need to do more research and analysis.”

Leffingwell says the city-owned utility needs have to be assessed before any rate increase is passed. He also repeated his request for a “phase-in” type implementation to soften the financial blow and stated his opposition to reclassifying churches as businesses.

“I do not think there is any justification for changing sanctuary’s from residential to commercial. We do not do that in zoning," he said.

Austin Energy General Manager Larry Weis said the work session is part of the process for setting the new rates but says regardless of whatever money figure is attached to the utility’s need, change is necessary.

“No matter what revenue requirement you pick, you still have to do something about the rates,” said Weis.

Weis said the low-income program would also be adjusted and could effect the rate increase.

“Right now, we have people on a waiting list and we plan on doubling the program,” said Weis about the program that is funded in part by customer donations.