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Archive for February 17th, 2010

Statement of Tom “Smitty” Smith, Director, Public Citizen’s Texas Office

Today’s announcement that as a part of a settlement with NRG Energy, CPS Energy will withdraw its application for a federal loan guarantee for the South Texas (Nuclear) Project (STP) expansion and end further investment in the project demonstrates nuclear plants are too costly and too risky to build.

CPS Energy and the San Antonio City Council have signaled their desire to stop throwing good money after bad at STP, a message we hope will tell the U.S. Department of Energy that this plant is a poor candidate for federal loan guarantees. This debacle should show the federal government that nuclear loan guarantees are a fundamentally flawed and wasteful use of taxpayer money.

At $18.2 billion, the cost of STP has already tripled in just a year. When STP 1 and 2 were built, they ended up being six times over-budget and eight years behind schedule, and STP 3 and 4 look like they are on track to beat out that poor performance record.

Today’s announcement is a victory for the many citizens of San Antonio that have worked so hard in the last year to bring openness and accountability to the city’s participation in this project. We applaud CPS for wisely seeing the futility of wasting more time and energy on this flawed nuclear endeavor. We hope that they will be satisfied with the deal they’ve gotten and avoid the temptation to increase their ownership in the project. CPS has finally reached a settlement that shields San Antonio ratepayers from the financial risks of yet another nuclear deal gone wrong. Any future investment would throw that protection to the wind.

On Thursday, the City Council will vote on a proposed rate increase for CPS. The City Council should put a firewall in that proposal to ensure that no unauthorized money will be siphoned off to buy a bigger stake in STP.  San Antonio can’t afford to let this rate increase become a back door to continued nuclear investment.

We also have to wonder how NRG will move forward, without another clearly delineated partner in the project. Less than a month ago, NRG announced that if CPS “does not meet future obligations representative of its ownership interest in the site”, they “will wind down the project as quickly and as economically as possible.” We certainly hope that NRG CEO David Crane will remain true to that expressed intent to protect his shareholders from the next financial failure in a long historic line of overly expensive, poorly executed nuclear projects.

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By promoting cleaner energy, cleaner government, and cleaner air for all Texans, we hope to provide for a healthy place to live and prosper. We are Public Citizen Texas.

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Photo Courtesy of Donna Hoffman at the Lone Star Chapter of the Sierra Club. Thanks Donna!

Dozens of businesses and nonprofit organizations as well as more than 200 citizens have formed Clean Energy for Austin, a coalition whose purpose is to push Austin City Council to adopt a clean energy plan. Specifically, the coalition supports the passage of Austin Energy’s Resource and Climate Protection Plan and recommendations of a city task force created to examine the plan. Coalition members support the plan because of its emphasis on renewable energy and efficiency, green jobs creation and careful consideration of Austin’s low-income residents.

To date, more than 70 businesses, 18 non-profit organizations and more than 200 individuals have signed on in support of the energy plan through www.cleanenergyforaustin.org.

The energy plan is a road map for how Austin Energy, the city-owned electric utility, will meet the city’s energy needs over the next 10 years. It includes a substantial investment in energy efficiency and a variety of renewable energy resources like wind and solar, as well as new more efficient natural gas plants. In addition to diversifying its generation portfolio, Austin Energy wants to create a self-sustaining market for renewable technologies like solar rooftops and parking lots by 2020.

“A good business practice is to keep your options open when selecting suppliers,” said Steve Taylor of Applied Materials, a semiconductor manufacturer employing more than a thousand Austinites. “This plan allows for a diversity of different energy options, so it protects businesses – and residents – from long-term price spikes for any single power source because other energy supply options will be available and abundant. This plan also enhances Austin’s efforts to create green businesses and green jobs for years to come.”

The plan is the culmination of a nearly two-year public process of gathering input from multiple stakeholder groups, including businesses, environmental organizations, and groups serving low-income communities. Four representatives from the mayor’s Generation and Resource Planning Task Force, which analyzed more than a dozen scenarios of where Austin could get its power by 2020, are members of the coalition: Phillip Schmandt, chairman of Electric Utility Commission, Cary Ferchill, chair of Solar Austin, as well as non-profit members Public Citizen and Sierra Club.

“The great thing about the plan is its flexibility,” said Matthew Johnson, clean energy advocate with Public Citizen. “If costs for any resource type rise or fall dramatically over the next 10 years, Austin Energy would have the ability to change the plan, and do so with the help of community stakeholders. That’s the beauty of a diverse portfolio of resources. If Austin were locked into building a new coal or nuclear plant, our fate would be sealed.”

Energy efficiency, generally recognized as the cheapest energy resource, would be the main component of the plan. Austin Energy would take a more proactive and coordinated approach to reach low-income households with free weatherization to help lower their electric bills.

“Low-income communities need the most help with paying utility bills,” said Sunshine Mathon, design and development director of Foundation Communities, an Austin-based nonprofit affordable housing organization. “Austin has a long track record of having the lowest bills in Texas because of its commitment to conservation programs that help people lower their bills. My hope is that with the passage of this plan, those programs will not only expand but coordinate with other programs like bill assistance, neighborhood housing and community development.”

Coalition representatives also said that the plan reduces financial risk associated with overreliance on fossil fuels. The plan would enable Austin Energy to ramp down the Fayette coal plant more often, protecting the utility from pending carbon regulation.

“Whether or not you support greenhouse gas regulation, reducing the amount of carbon emissions that Austin is responsible for makes economic sense,” Johnson said. “That’s in addition to the improvements in air quality Austin and the surrounding region would experience. It’s a win-win.”

Austin’s City Council could vote on the plan in March, according to Austin Mayor Lee Leffingwell. He has scheduled a Feb. 22 town hall meeting on Austin Energy’s Resource and Climate Protection Plan. Coalition members urge the public to visit www.cleanenergyforaustin.org and sign on as well as attend the town hall meeting to show their support.

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By promoting cleaner energy, cleaner government, and cleaner air for all Texans, we hope to provide for a healthy place to live and prosper. We are Public Citizen Texas.

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UPDATE: Here it is. Great job KLRU, KUT and the Statesman for putting together a great show on an important topic!

http://www.klru.org/aai/

Unable to  embed unfortunately.

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Public Citizen participated in developing an energy plan for Austin to cut carbon emissions, use more renewables, and promote energy efficiency. And because we did, I’m about to be famous!

Pay no attention to that girl trying to steal my spotlight

Recently, I was one of several energy experts interviewed about the plan for a special program called “Austin at Issue: Energy for the Future”—a joint project of KLRU-TV (Austin’s PBS), KUT, and the Austin American-Statesman.

Watch “Austin at Issue: Energy for the Future” this Thursday, February 18, at 7:30 p.m. on KLRU or listen at 8 p.m. on KUT 90.5 FM.

City Council should vote on the plan to brighten Austin’s energy future sometime in March. To educate Austinites about the plan, the mayor is holding a town hall meeting on Monday, February 22, from 6 – 8 p.m. at the Palmer Events Center.

We need to show support for investment in renewables and energy efficiency that will bring new green jobs to Austin, and move us away from old dirty energy sources.

So do your homework by watching or listening to Austin at Issue, or visit www.cleanenergyforaustin.org, and come on out to the Mayor’s town hall on Monday. Look for the Public Citizen crew and stand with us to support Austin’s clean energy future!

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By promoting cleaner energy, cleaner government, and cleaner air for all Texans, we hope to provide for a healthy place to live and prosper. We are Public Citizen Texas.

Read Full Post »