Austin Energy pauses to analyze path forward for climate plan

Austin Energy General Manager Bob Kahn has informed the mayor and City Council that the utility is pausing the current process of amending its resource, generation and climate protection plan. The utility had been working to provide proposed changes to that plan this month.

In 2022, Council directed Austin Energy to work with the Electric Utility Commission and present any changes they would recommend in the 2030 plan for reaching a carbon-free future.

Kahn noted in a memo that the utility would be working with the community, the commission and city leaders “to analyze and share the key risks and benefits of various scenarios.”

Mayor Kirk Watson has recently pushed the idea that Austin should get out of the coal-fired Fayette Power Project, which it jointly owns with the Lower Colorado River Authority. Although they worked on reaching an agreement, Austin Energy announced in late 2021 that it had not been able to negotiate a plan with the LCRA to shutter Austin’s part of the plant.

LCRA has recently said that it has no intention of closing the Fayette plant, making Austin’s position difficult. The agency has also revealed plans to build a new natural gas-fired “peaker” plant in Caldwell County.

At the same time, environmentalists have urged Council to push the utility to move faster to become carbon-neutral.

According to Kahn’s memo, the utility will continue to “analyze generation resources and demand-side measures,” such as encouraging customers to limit power use during peak times of the day. He promised to keep Council informed on their progress. One important factor to note is that Austin Energy’s goals include reliability and affordability in addition to environmental sustainability. While the utility might be able to achieve a higher level of environmental sustainability, it seems likely that reliability and cost could make that more difficult.

Kahn wrote that Austin Energy would continue to refine its plan and consider whether a mid-course 2030 update would be sufficient or if the next plan should be in 2035 to align generation portfolio goals.

Kahn emphasized a commitment to exploring options for expanding its generation portfolio, including release of requests for proposal aimed at assessing the viability of potential changes to the way it generates electricity. He noted that building new generation, “whether renewable or conventional, requires years of planning and development work before the electricity source is operational.”

He added, “Looking ahead, we will issue RFPs that will help with getting more data surrounding carbon-free generation technologies, including wind, solar, and hydrogen fuel cells.” The utility will also be looking at proposals related to battery storage and flexible fuel generation, Kahn said.

“Austin Energy is committed to engaging in a more robust, collaborative process to ensure a conversation addressing the needs of the Austin community and related shared values of environmental sustainability and a common understanding of risks and challenges,” he said.

Kahn concluded his memo by reminding Council, “As part of the Texas clean energy scorecard the Sierra Club recognized Austin Energy as the highest scoring electric provider in the state. Austin Energy will continue on this trajectory as it targets 100 percent carbon free generation as aggressively as possible while ensuring the utility can serve customers with reliable and affordable power.”

Photo made available through a Creative Commons license.

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