AUSTIN -- Austin Energy unveiled to the Austin City Council Wednesday a proposal for a rate increase targeted for April 2012.
Ed Clark, a spokesman for Austin Energy, says the rate increase is way overdue.
"We tried to delay a rate increase, and we've been looking at deficits in the $75 million a year arena for the last few years,” says Clark.
He also said that Austin Energy hasn’t raised rates in 17-years.
Under the proposed rate hike, the average residential customer would pay about $20 more a month on their utility bill.
The proposed rate hike has some local churches crying foul. Reverend John Wright of First United Methodist Church says the proposed rate hike "feels like a slap in the face.”
Reverend Wright says that his church feeds 300-400 homeless people a day, at a cost of $150,000 a year. That figure which does not include building maintenance or utilities.
Wright went on to say that under Austin Energy’s proposed rate increase that his church would be paying $16,000 more a year in utilities. He’s now afraid what the extra cost could mean to the church’s countless programs for the homeless.
“If we have to cease those services, where will they go?" questioned Revered Wright. "The city will have to deal with them right?”
The Austin City Council wants to hold several public hearings to give members of the community a chance to offer input on the proposed electric rate increase.
In Wednesday morning’s presentation, Mayor Lee Leffingwell told members of the council that he wasn’t sure if a target date of January 12, 2012 would give the council or the community enough time to get familiar with the rate increase proposal.
The city council is expected to decide on Thursday when and where the public hearing will take place.
For Austin Energy’s entire rate increase proposal, click here:
