Austin Energy Rate Selection Guide
Austin Energy is a municipal electric utility owned by the City of Austin, Texas, serving approximately 562,000 customers. As one of the few municipal utilities with Green Button Connect My Data support (via Smart Meter Texas), Austin Energy offers comprehensive data access including 15-minute interval data, Green Button DMD/CMD, and third-party CSP authorization through the ERCOT-administered Smart Meter Texas platform.
Austin Energy Rate Schedule Comparison
| Schedule | Type | Rate | Best For |
|---|---|---|---|
| Residential (Tiered) | Residential 5-Tier | See tariff | Most homes, rewards conservation |
| Residential TOU | Residential Time-of-Use | See tariff | Homes with flexible schedules and EVs |
| Value of Solar | Solar Production Credit | See tariff | Solar customers (post-2014) |
| Commercial P1 | Small Commercial | See tariff | Businesses under 10 kW |
| Commercial S2/S3 | Secondary Service | See tariff | Mid-size commercial 10-300 kW |
| Commercial TOU | Secondary TOU | See tariff | Commercial with load shifting ability |
| Commercial P2/P3 | Primary Service | See tariff | Large commercial/industrial 300+ kW |
| Transmission T1 | Transmission Service | See tariff | Very large industrial at 69 kV+ |
Market Overview
Austin Energy is a municipally owned utility exempt from ERCOT retail competition. While most of Texas has retail choice (customers can shop for electricity providers), Austin Energy customers cannot choose an alternative supplier. Rates are set by the Austin City Council rather than the Public Utility Commission of Texas. This structure gives the city direct control over energy policy, enabling aggressive renewable energy and equity programs.
Need to pull your actual usage data to compare rates? See the Austin Energy Data Access Guide →
Current Rate Schedules
Austin Energy uses a tiered residential rate structure that increases with consumption (5 tiers) to encourage conservation. Commercial rates include demand charges and optional TOU pricing. The utility also offers a Value of Solar (VOS) tariff for solar customers that provides a production-based credit separate from the retail rate, rather than traditional net metering.
Effective: January 1, 2026 · Full Tariff Book →
| Schedule | Type | Applicability | Structure | Rate |
|---|---|---|---|---|
| Commercial — Small (P1) | commercial | Small commercial customers with demand under 10 kW | Customer charge plus flat energy charge per kWh. No demand component. Simple structure for very small businesses. | — |
| Commercial — Secondary (S2/S3) | commercial | Commercial customers with demand 10-300 kW taking secondary voltage service | Customer charge, demand charge (per kW), and energy charge (per kWh) with summer/winter seasonal variation. Demand based on highest 15-minute interval. | — |
| Commercial — TOU Secondary | commercial | Commercial customers on secondary service who opt into TOU pricing | TOU energy charges (on-peak/off-peak) plus demand charges with on-peak demand component. Peak: 2-8 PM weekdays (summer), 6-10 AM and 6-10 PM (winter). | — |
| Commercial — Primary (P2/P3) | industrial | Large commercial and industrial customers taking primary voltage service (>300 kW) | Customer charge, demand charge with on-peak/off-peak components, energy charge with TOU periods. Voltage discount for primary service. | — |
| Commercial — Transmission (T1) | industrial | Very large industrial customers taking transmission voltage service | Lowest per-unit rates for customers receiving power at transmission voltage (69 kV+). Minimal utility distribution infrastructure required. | — |
Rate Recommendations by Use Case
Small Business / Startup
Small commercial under 10 kW — coffee shops, small offices, retail boutiques.
P1 rate has no demand charge, making costs completely predictable based on consumption. This is ideal for small businesses with variable operating hours and limited capital for demand management equipment. The flat energy rate simplifies budgeting and eliminates risk from equipment startup spikes.
- LED lighting and smart HVAC controls are the highest-ROI investments for small Austin businesses.
- Austin Energy GreenChoice program lets you source 100% renewable energy at a fixed rate — good for marketing.
- Monitor your peak demand — if you approach 10 kW, consider load management before being moved to a demand rate.
- Free commercial energy audits available through Austin Energy.
Mid-Size Commercial (10-300 kW)
Office buildings, restaurants, retail centers, and mid-size facilities.
Demand charges represent a significant portion of mid-size commercial bills. The TOU variant may save money if you can shift flexible loads off-peak (before 2 PM or after 8 PM in summer). Austin summers are brutal — HVAC optimization is the single largest lever for managing both energy and demand.
- Pre-cool buildings before 2 PM peak period starts — thermal mass can coast through the first hours of peak.
- Stagger HVAC unit startups by 10-15 minutes to avoid demand spikes in early morning.
- Consider the TOU rate if you can shift 20%+ of energy use to off-peak hours.
- Austin Energy offers commercial rebates for chillers, VFDs, lighting, and building controls.
- Evaluate community solar subscription if rooftop solar is not feasible.
Large Commercial / Industrial
Large facilities taking primary or transmission voltage service.
Large customers benefit significantly from voltage-level discounts. Taking service at primary (12.47 kV) or transmission (69 kV+) voltage reduces rates because Austin Energy avoids transformer and distribution infrastructure costs. High load factor operations benefit most from these rate structures.
- Evaluate primary voltage service — the discount often justifies the cost of customer-owned transformers.
- Maintain high load factor (>65%) for optimal economics on primary/transmission rates.
- Participate in Austin Energy demand response programs for additional credits during ERCOT grid stress events.
- Consider on-site solar or power purchase agreements — Austin has excellent solar resource.
- Install power factor correction to avoid reactive demand penalties.
Historical Rate Trends
Austin Energy rates have increased at a moderate pace, reflecting investments in renewable energy, grid infrastructure, and affordability programs. As a municipal utility, rate decisions are made by Austin City Council, which balances cost recovery with equity and climate goals.
November 1, 2022
Base rate increase approved by City Council following a comprehensive rate review. Includes increased investment in renewable portfolio and distribution grid upgrades.
+7.0%June 1, 2023
Power Supply Adjustment reflecting higher ERCOT wholesale market costs from Winter Storm Uri-related securitization and natural gas price impacts.
+4.2%January 1, 2024
Community benefit charge increase to fund expanded Customer Assistance Program (CAP) and weatherization for low-income customers.
+2.5%October 1, 2024
Power Supply Adjustment decrease as wholesale costs stabilized and Austin Energy solar/wind portfolio offset market purchases.
-1.8%November 1, 2025
Rate restructure approved by Council: slight increase in customer charge offset by lower upper-tier energy rates to reduce bill volatility for high-use customers.
+3.1%Overall trend: Austin Energy rates have increased at roughly 3-5% annually, driven by renewable energy investments, grid hardening (post-Winter Storm Uri), and equity programs. The tiered structure has been periodically adjusted to balance conservation incentives with affordability for high-use households in Austin's extreme summer climate.
Next expected change: June 2026 (Power Supply Adjustment)
Cost Optimization Strategies
Austin Energy's tiered residential rate heavily rewards conservation — keeping consumption low is the primary strategy. For commercial customers, demand management and TOU optimization offer the largest savings. Austin's excellent solar resource and generous community programs create additional opportunities.
Solar + Value of Solar Credits
For: All customer classes with suitable roof/land
Austin's solar resource (5.3+ peak sun hours/day) makes rooftop solar highly productive. The Value of Solar tariff provides credit for all generation regardless of consumption pattern. Combined with efficiency measures to reduce tier exposure, solar + efficiency is the strongest cost reduction strategy available.
Demand Management (Commercial)
For: Commercial and industrial (>10 kW)
For S2/S3 and P2/P3 rate customers, demand charges can constitute 30-50% of the bill. Install demand monitoring, stagger equipment startups, and implement automated load shedding. Austin Energy measures demand as the highest 15-minute interval, so even brief spikes are costly.
GreenChoice Fixed-Rate Program
For: All customer classes
Austin Energy GreenChoice allows customers to lock in a fixed energy rate sourced from 100% renewable energy for terms of 1-3 years. During periods of rising fuel costs, the fixed GreenChoice rate can be lower than the standard variable Power Supply Adjustment — providing both price stability and sustainability credentials.
Austin Energy Rebate Programs
For: All customer classes
Austin Energy offers substantial rebates: up to $1,600 for HVAC upgrades, $600 for insulation, $200 for smart thermostats, and commercial rebates for lighting, chillers, and building controls. These programs reduce the payback period for efficiency investments from 5-7 years to 2-4 years.
To implement these strategies, you need your 15-minute interval data. Learn how to download Austin Energy interval data →
Frequently Asked Questions
How do I download 15-minute interval data from Austin Energy?▾
Sign into Austin Utilities Customer Connect (coautilities.com), navigate to My Usage, select your date range, and export as Green Button XML or CSV. 15-minute interval data is available for all smart meter accounts with 13+ months of history.
Does Austin Energy support third-party API access like Green Button Connect?▾
Austin Energy does not offer a formal third-party API program (Connect My Data is not implemented). Third parties must work through manual authorization with customer consent. Contact Austin Energy directly for custom data sharing arrangements.
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