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12/06/2011 09:01 PM

Austin's faith community braces for potential utility hike

By: Alana Rocha

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After more than 17 years, Austin Energy is getting ready to restructure its rates and hints of its proposal have several segments of the community worried they won't be able to pay.

While analysts say low-income families will be the hardest hit, those who serve the needy are also expecting to suffer. Under the new plan, 621 worship facilities served by Austin Energy would be reclassified as commercial customers instead of residential, changing the way they pay for power.

First United Methodist Church in Downtown Austin provides tens of thousands of meals each year for the city’s poor and homeless. After restructuring, the church’s utility bills could jump as much as 47 percent.

"In order to cover that cost, we may have to consider cutting or curtailing some of those ministries," Reverend John Wright with the church said. "We're trying to do our part, but we can't do it all."

Residential and commercial customers both pay a fixed fee and a usage charge, but only commercial customers have to pay the “demand charge.”

A customer’s demand charge is calculated using its peak demand, the maximum amount of electricity required by a customer during the month.

Austin Energy Spokesman Ed Clark said under the proposed changes, the demand charge would be phased in over three years for churches; any new commercial customer.

Texas Impact, a grassroots network serving the faith-based community, is trying to help make sense of it all.

"It peaks and they measure that, they measure that peak instant of demand and charge you based on it," Joshua Houston with Texas Impact said. "We want to pay our fair share, but the way that the current rates are. It's not green. It's not affordable and it's not fair."

The faith community will have the opportunity to express their concerns to the Austin City Council next week as the council begins to consider the proposed changes.

Any congregation wanting to know more about the potential rate increases can contact Texas Impact at (512) 472-3903 or by visiting TexasImpact.org.