Austin residents' utility bill is going up. Here is what the fees are for

AUSTIN, Texas - If you're an Austin resident, you'll notice some increases for several different department fees on your utility bill. 

The new rates went into effect on Nov. 1. They were approved by City Council in August. 

The average Austin utility bill will go up to $9.54 per month for the typical customer. It's not just electric charges on that bill, other department fees are added in. 

Austin Energy

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While some electric costs are going up, Austin Energy says overall, their portion of the utility bill may be lower. 

Base rates will increase by 5 percent. 

"That five percent increase is to keep up with inflation, to add infrastructure and equipment that are really important in terms of keeping our grid very resilient," Matt Mitchell with Austin Energy said. "We want to make sure that we have the right equipment to be able to keep the lights on and get the lights back on as quickly as possible during those extreme weather events and also potentially a wildfire situation."

The community benefit charge, which goes towards the Customer Assistance Program and energy efficiency programs, will go up by $2.

"We want people to get help where they want. We want to make our environment more sustainable and our community more environmentally friendly," Mitchell said.

However, lower power supply costs mean that a portion of the bill will be an average of $5 less than the rate last year. The power supply cost reflects the cost of buying and selling energy in the ERCOT market.  Mitchell says this essentially balances out the other increased rates.

"What we want to do is make sure that we're reflecting the priorities of our community and making sure that we keep bills as affordable as possible. Our bills are about $60 lower than the state average for residential customers," Mitchell said. "We still forecast lower bills than this time last year for the vast majority of our residential customers."

Customers who are enrolled in CAP will continue to receive a waiver of their customer charge and the CAP portion of the CBC, and a 10% discount on their remaining charges. The utility will also offer more funding for rebates, incentives, and solar programs.

Austin Water

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Austin Water's rate is going up by an average of $8.71. That's part of a five-year phased increase. Customers enrolled in CAP will have an average increase of $5.50. This is to keep up with rising costs and infrastructure projects like the expanding the Walnut Creek Wastewater Treatment plant. 

"Our budget, our capital plan includes projects that focus on maintaining system reliability, addressing water loss, but also looking to diversify and expand our water supply for future generations," Joseph Gonzales, deputy director of business services for Austin Water said. "We understand that affordability and rising costs are a challenge for our community. Although we're facing those same rising costs, we're committed to maintaining a cost structure that's low as possible and ultimately a rate structure that that's as low as possible."

More charges

Dig deeper:

The following departments also have fee increases outlined in the latest city utility newsletter. FOX 7 asked each department what the increased fees are going towards and why they're necessary. 

The statements under each bullet point are their responses. 

Austin Resource Recovery

Austin Resource Recovery’s (ARR) base fee for residential customers increased by $1.90 per month, and the fee for using a large trash cart rose by $1 per month, resulting in an overall increase of $2.90 for the average customer. You can save money on your utility bill by recycling and composting more, as well as by switching to a smaller trash cart.

"Austin Resource Recovery (ARR) performs a comprehensive cost of service analysis each year. The increase to the base and cart fees for Fiscal Year 2026 will ensure the continued delivery of essential services to the community. The fee adjustments reflect rising operational costs driven by inflation, increased expenses for labor, fuel, equipment and materials, as well as the need to maintain and replace an aging fleet and infrastructure. 

In addition, beginning in FY 2026, ARR will begin meeting debt service requirements associated with the Northeast Service Center capital improvement project, a major investment designed to improve operational efficiency and support future growth. The fee increase will also help sustain ARR’s long-term financial stability and support key initiatives that advance Austin’s Zero Waste goals. 

ARR is enterprise department, which means it is funded primarily through the fees charged customers for services provided, rather than through general tax revenue."

Austin Watershed Protection

Austin Watershed Protection is increasing its drainage charge by 5%. For a typical single-family home, the charge will increase from $13.38 to $14.05 per month. That is an annual change of $8.04 for a residential customer with 3,100 square feet of impervious cover and 37% impervious cover.

"Austin's drainage utility charge pays for solutions to flooding, erosion and water pollution. A rate increase went into effect on October 1, 2025, and will be reflected on November utility bills. This rate increase is needed to keep pace with rising operational costs for services such as vegetation control, maintenance of our drainage system, water quality testing and engineering consulting services. Additionally, the rate increase will support the addition of new staff to support construction of drainage infrastructure projects, preventative maintenance and storm drain cleaning functions. 

The drainage charge is calculated individually for each property, based on the amount and percent of impervious cover such as rooftops, driveways and patios. Less impervious cover means a lower charge. The rate increase is $8.04 annually, or $0.67 per month, for a typical residential customer with 3,100 square feet of impervious cover."

Transportation User Fee

The Transportation User Fee is increasing by 11% on average, resulting in an $2.06 monthly increase for the typical single-family home. 

"The Transportation User Fee (TUF) increase is due to rising cost drivers and the addition of enhanced services, including bridge repairs, concrete repairs, and expanded street maintenance. This adjustment ensures the City can continue to keep Austin’s transportation network safe and reliable for all users, and reflects the costs necessary to sustain and improve these service levels."

• The Code Compliance charge will increase from $4.70 to $4.80.

"The increase in Code Compliance’s portion of the residential Clean Community Fee (CCF) was due to annual citywide cost drivers and temporary staffing and equipment costs for the Graffiti Abatement Pilot Program.

The Graffiti Abatement Pilot Program is a free service that launched in October. Our community has asked for support in cleaning up unwanted graffiti, and this pilot provides this free and needed resource to Austin homeowners and business owners."

AustinAustin City Council