Hey small business owners- did you know that Austin energy is planning to restructure their energy rate plan in a manner that will be more costly to your business rental space? Historically, small businesses have “favored” in regard to energy costs by saving upwards of 30 percent on the energy necessary to support them. The new pricing structure is designed to allocate costs more efficiently in an effort to pass some of the cost from large companies to small businesses. It is said that this rate restructure could raise the price of your electric bill by as much as 22 percent! At that rate, you would be forking out thousands of dollars in additional fees per year. Here are some helpful tips to tackle this issue:
- Track what you’re paying and monitor your cash flow. Make it a point to know what you historically pay for energy during any given part of the year. Know what you typically pay and begin budgeting for an increase of up to 22%.
- Get Proactive – Austin is a city that has flourished largely in part to a strong community of small businesses. Stand up against this change that could hinder the competitiveness of your business
- Stay informed – Keep a keen eye on events surrounding this issue and advancements in the proposition. Monitor the progress of the proposition and spread the word to others in the community.
If you are considering leasing an office in which you would be required to pay your own electric VS a commercial building that includes electric as part of the rent, make sure you compare apples to apples. If you lease a building that requires you to pay for your own electric estimate another $2 to $3.50 per sf/yr for electricity.