Under pressure from an unhappy City Council, Austin Energy released a new proposal Thursday for raising electric rates.

The city-owned utility is seeking to keep the 12.5 percent average rate increase it initially proposed but phase it in over two steps. Sometime this year, rates would rise 8.7 percent, although the increase would hit homes, churches and some other classes of customer much harder. Another 3.8 percent increase would kick in around October 2014.

Full article at the Austin American-Statesman.