Austin Utilities Board approves rate changes for 2025

(ABC 6 News) — The Austin Utilities Board of Commissioners approved the 2025 Austin Utilities budget and related rate adjustments at the December board meeting.

Every 3-4 years, Austin Utilities commissions a third party to conduct a rate study to evaluate future rate requirements.

According to a press release from Austin Utilities, the costs of providing energy continues to rise due to multiple reasons, including rising wholesale energy costs, increasing operational costs, and the continued need to upgrade aging utility infrastructure.

For electric rates, customers can expect to see increases of 1-3% across all rate classes. The average residential customer will see an increase of $2.99 per month while small to mid-sized business customers can expect an increase of $3.83 per month.

Meanwhile, water rates will increase by 4.5% for all customer classes, with average residential customers seeing a bill increase of $1.50 from May-October. Business customers can expect to see a monthly increase of $4.91, depending on their meter size and usage.

Finally, gas rates will increase by 2% for all customer classes. This will result in the average residential customer seeing an increase of $4.13 per month while business customers can expect an increase of $34.04 per month.

“Our board and staff worked jointly to trim operating expenses for 2025 to help reduce the rate
increases,” said General Manager Mark Nibaur via a press release. “We understand the financial impact our customers are experiencing, and we are committed to providing reliable and safe utility services at a reasonable price.”