After another rate adjustment, you're saving roughly $10 a month on your Austin Energy bill
AUSTIN (KXAN) -- As you sit down to go over your budget for the new year, we have some good news -- for four months in a row, Austin Energy has shaved off some of your bill.
We're talking about the Power Supply Adjustment (PSA) rate. We've told you previously when that rate has gone up, including in late 2023 when it jumped "for the third time in a year."
Now, Austin Energy said that rate has gone down by 20% over last four months, meaning the average customer could be saving roughly $8-$10 a month on their bill.
"Austin Energy is implementing an additional 5% decrease to the Power Supply Adjustment (PSA) rate, effective January 1, 2024," a memo from Austin Energy said. "This is the fourth month in a row that Austin Energy is implementing a 5% PSA reduction. For the typical residential customer, the impact of this latest change will be another bill decrease of approximately $2 per month."
In 2023, when the PSA rate went up, we talked to lifelong Austinite Louis Garcia, who was frustrated with the amount he was paying. We rolled back around to Garcia Thursday, who now said his bill has gone down roughly $15-$20 since we talked to him last.
"Usually I typically spend around 90-100 from the previous conversation we had. Now I'm spending anywhere from 60-70. I do obviously think that weather plays a big role in it, but for the most part I am seeing some adjustments on my end as each bill goes for sure," he said. "It goes a long way and it feels good to have an extra $20 to spend toward groceries."
What is the Power Supply Adjustment rate?
When you get your bill every month, you'll see things like a customer charge, an energy charge and the PSA rate. The PSA rate makes up about half of your bill.
The PSA rate is "a dollar-for-dollar recovery that includes the cost of fuel for our power plants, the cost of electricity purchased from the grid and any net charges experienced as Austin Energy sells power to the grid," Austin Energy's website said.
As for what fueled this month's decrease in PSA rate: "The decrease is due to lower power supply costs experienced by Austin Energy in the ERCOT market over the past year," the memo said.
You can read more about residential rates and what factors go into them here.