Electric rates continue to vex the Austin City Council.

At its regular meeting Thursday, the council debated various proposals to raise rates, ultimately reaching no conclusion but to continue studying the matter for up to three more months. The decision came after the city-owned electric utility warned that inaction carries potentially serious financial consequences for the utility.

Three council members brought forth a proposal for an “interim” increase that would be smaller than Austin Energy says it needs. Council Members Mike Martinez, Laura Morrison and Kathie Tovo said a rate increase of 3.5 percent should be enough to tide the utility over until another increase in the fall and while the council sorts through numerous issues, including whether Austin Energy needs the additional revenue it says it does.

Read the full article at the Austin American-Statesman.