Many Austin residents opening their November bills are finding an unwelcome surprise: higher charges for electricity, water, and trash service tied to the city’s new FY 2025-26 budget. The rate changes, which took effect Nov. 1, apply to most customers. City estimates suggest a “typical” household will pay about $80 more a year, even as some electric account types see savings from lower wholesale pass-throughs.
A taxpayer impact analysis from the City of Austin pegs the net effect at roughly an $80 annual increase for a typical residential ratepayer once adjustments from Austin Energy, Austin Water, and Austin Resource Recovery are all added together. The document spells out the usage assumptions behind that estimate and shows how the separate line items stack up across the utilities.
Electric Bills: Base Rate Up, PSA Down
Austin Energy signed off on a 5% increase to base electric rates, including a $1.50 bump to the residential customer charge. At the same time, its Power Supply Adjustment, the pass-through tied to wholesale market costs, is about 23% lower than it was a year ago. The new rates and fees took effect Nov. 1, and whether an individual customer’s bill winds up higher or lower will largely depend on usage patterns and account type, Austin Energy says.
Why The Increases
City leaders and utility staff say the overall package is designed to keep the system running in the face of rising operating costs and aging infrastructure. They point to the need to fund capital projects while trying not to push bills too far, too fast.
Matt Mitchell, a public information officer for Austin Energy, told The Daily Texan that the mix of base-rate adjustments and program funding is aimed at preserving reliability. “We’re not private, we’re not for profit, and we set those rates accordingly,” he said.
Water And Trash: Uneven Impacts
Austin Water recently completed a 2024 cost-of-service study and recommended phasing its changes so customers are not hit with steep jumps all at once. Utility staff told the Water and Wastewater Commission that the phased structure is meant to balance affordability for essential use with the need to pay for maintenance and capital improvements, as detailed in Austin Water FY26 briefing materials.
Local Reaction
Not everyone is thrilled with how that “balance” looks on paper. Christina Romero, acting assistant director of financial services for Austin Water, told The Daily Texan that some customer classes, including West Campus multi-family accounts, are seeing larger percentage changes as the utility weighs system needs against affordability…