Austin poor spend much of their income on electricity

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Austin poor spend much of their income on electricity

October 28, 2010 by Citizen Carol

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Austin Energy hired a consultant to help determine how its rates compare to those of other utilities in preparation for its plan to substantially raise electricity rates in 2012. The work is ongoing, but an eye-opening statistic has already emerged. Estimates indicate that the average US household’s energy costs are equal to 7% of household income, but the study shows that on average, the poorest 5 percent of Travis County households spend about 45% of their incomes on electricity.

That is a staggering statistic and points out the need to provide more energy efficiency funding for low-income families. The short and long term benefits are economic relief and cost-effective home improvements. While assistance relieves pressure on individual households, the benefits also ripple into the community. With less money spent on energy, more money is available for other goods and services. If this money is spent locally, Austin captures this revenue, with further benefits rippling out from there.

Keep in mind, most low-income households are renters. There should be incentives put in place to encourage landlords to increase the energy efficiency of their properties. And don’t forget, there are environmental benefits to reducing our energy usage. This seems like a win win for our city.

Posted in Efficiency, Energy | Tagged Austin, Austin Energy, conservation, Efficient energy use, electricity, Energy, Energy Efficiency, Household, poverty, Technology | 2 Comments

2 Responses

on November 3, 2010 at 1:13 pm | Reply Salome

I believe we ALL spend too much of our income on utilities in Austin.
on November 3, 2010 at 2:23 pm | Reply cgeiger1303

We all probably feel that we spend too much of our income on utilities but below are rate comparisons in Texas’ competitive market by Transmission and Distribution Service Area from the Public Utility Commission’s “Power to Choose” website on Wednesday, November 3rd at 3pm

AEP Texas Central’s rates range from: 8.00 to 13.90 ¢ per kWh up to 1000 kWh / 7.50 to 13.90 ¢ per kWh up to 2000 kWh

AEP North’s rates range from: 7.40 to 13.90 ¢ per kWh up to 1000 kWh / 7.30 to 13.90 ¢ per kWh up to 2000 kWh

CenterPoint’s rates range from: 7.10 to 13.00 ¢ per kWh up to 1000 kWh / 6.70 to 13.00 ¢ per kWh up to 2000 kWh

Oncor’s rates range from: 6.60 to 14.90 ¢ per kWh up to 1000 kWh / 6.60 to 14.40 ¢ per kWh up to 2000 kWh

Sharyland’s rates range from: 8.10 to 13.60 ¢ per kWh up to 1000 kWh / 7.60 to 13.10 ¢ per kWh up to 2000 kWh

Texas-New Mexico Power Company’s rates range from: 7.10 to 12.80 ¢ per kWh up to 1000 kWh / 6.90 to 12.80 ¢ per kWh up to 2000 kWh

This compares to the rates listed on Austin Energy’s website today of:

Winter Billing Months – November through April
3.55¢ per kWh, first 500 kWh
6.02¢ per kWh, for all kWh over 500 kWh

Summer Billing Months – May through October
3.55¢ per kWh, first 500 kWh
7.82¢ per kWh, over 500 kWh