#NotOnlyREPs: Austin Energy Rate Settlement Criticized For Penalizing Customers For Conserving Power
August 24,2016
A rate settlement at muni Austin Energy is being criticized by some stakeholders for changes in its tiered rate structure under which rates paid by all customers will fund a decrease in rates for higher usage tiers, the Austin American-Statesman reports
The Statesman describes the increase varyingly as Austin Energy, "increasing its base electric tier paid by everyone," and increasing the "base rate paid by all customers." It was not clear from the Statesman's reporting if this charge was flat or volumetric; however, in either case the result is the same, lower usage customers are being allocated more costs than currently, and in a sense are being "penalized" for their low usage. The negative impact would be even higher if the base charge is flat and cannot be reduced or avoided through conservation.
"[C]ritics contend the changes punish conservation-minded consumers," the Statesman reports -- a charge that is often thrown at retail electric providers for monthly fees or minimum usage fees, as if the competitive market were solely responsible for such evils.