Council Member Marc Duchen voted against the overall budget and opposed or abstained from most of his colleagues’ modifications to the city budget for the next year. However, by suggesting raising its rates and levies, Austin Energy made an effort to enhance its revenue. The total revenue from his proposal would have been $63 million. During Thursday’s budget adoption, Duchen was the only council member to vote in favor of the change.
After assisting consumers during the COVID-19 outbreak, the utility has fallen further behind and failed to keep up with inflation. Austin Energy anticipates a $43 million deficit in 2026 as a result. For the 2025–2026 budget, the utility suggested a little increase in the monthly user cost from $15 to $16.20.Customers of the Customer Assistance Program (CAP) are exempt from paying this charge.
Duchen’s motion did not specify whether the utility was expected to boost revenue by increasing rates for electricity used, hiking the consumer price even more, or doing both.
Austin Energy has made every effort to prevent ratepayers from receiving unexpectedly high bills. This year, the company is proposing—and the council has approved—a $4.89 monthly bill reduction for the typical customer, with a $7 drop for CAP subscribers.
Recently, two members of the Electric Utility Commission suggested increasing the amount that consumers pay for using electricity while keeping the monthly price at $15. According to utility authorities, the monthly fee gives them a steady stream of income. The plan to alter the method of raising that revenue was turned down by the commission.
Austin Energy’s initiative has the resounding endorsement of Mayor Kirk Watson. He pointed out that there is an inherent conflict between asking the public for more money and providing essential services. “The only budget item where we’re actually decreasing (charges) on behalf of the ratepayer is Austin Energy’s new rate schedule,” he added.
When it came time to vote, Krista Laine, a council member from District 6, supported Duchen’s motion by providing the second, but she voted against it. Laine pointed out that compared to other sections of the city, her district and other regions of north Austin struggle more to keep the lights on. She only urged Austin Energy to proceed with its goals for bettering service, adding, “I know people who have moved out of our area because of electric reliability.”
Stuart Riley, the AE Interim General Manager, said Council on Thursday that they had allocated $30 million for vegetation control and were spending more on tree trimming than their comparable cities. Riley agreed that some customers are not seeing that, but overall, he stated that Austin Energy has superior dependability numbers than peer cities.
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