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Committee adopts small FACE grants funding recommendation and calls for a rate-case review of Austin Energy
Summary
The Joint Sustainability Committee voted to retain the $75,000 Food and Climate Equity (FACE) microgrant pool and recommended Austin Council delay proposed 5% base-rate increases until a full rate case or independent examiner review clarifies cost allocation and fairness.
The committee adopted two separate recommendations on June 24: one to preserve small Food and Climate Equity (FACE) grants and another to press for greater transparency and a formal rate case related to Austin Energy’s proposed rate increases.
On FACE grants, the committee noted FY2025 allocated $75,000 and used the program to fund about 25 community projects, typically in $3,000 microgrants for food-access and climate-equity work such as community gardens and meal distribution. Commissioners described the program as "bang for the buck" and unanimously adopted the committee recommendation to retain the small-dollar grant program.
On Austin Energy, commissioners discussed a proposed roughly 5% base-rate increase for FY27. Members said routine annual rate increases without a comprehensive cost-of-service review risked unfairly shifting transmission and other costs onto residential customers. The committee recommended declining the proposed increase until after a rate case and urged the use of an independent examiner to improve transparency; a commissioner described the push as driven by affordability concerns, noting "everybody's broke." The committee adopted the recommendation by voice vote; the transcript records motion, second and adoption but does not include a roll-call tally.
Commissioners asked staff to track likely timelines for an independent review and to follow the usual cost-of-service study schedule used in prior rate proceedings. The committee identified the recommendation to the City Council as a step to protect residential customers and to allow a fuller public process for any future rate-setting decision.
