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Posts Tagged ‘Austin Energy’

austin-skyline-bannerAs expected, the Austin City Council made the decision to delay the vote on Austin Energy’s proposed solar plant until March 5th.  Council Member Mike Martinez wanted to put it off longer, but since the bid for the plant will actually expire just seven days after this March meeting, the council agreed unanimously to have the final vote in three weeks time.

The foremost explanation for this delay was to give more time for the public participation process… though I think it is important to note that the “public” we’re referring to here is chiefly the city’s largest industrial rate-payers.  The general Austin public has already shown its colors on this issue.  According to recent surveys conducted by Austin Energy (and presented yesterday morning by Roger Duncan, general manager of the utility), Austinites want much more solar.  At 30 MW, the proposed solar plant would be the largest utility-scale photovoltaic array in the nation, and the 6th biggest solar plant in the world.  From where I’m sitting, that looks like just what the doctor ordered.

Large-scale users are up in arms because, since they use so much more energy, they think they’re going to be particularly hard hit by any slight rate increase.  Due to information that surfaced during this meeting, I am inclined not to feel terribly sorry for these folks.  If you’ll just stick with me here, everything will be illuminated.  I promise it’ll be good.

The council had already decided to delay the vote before they even entered the chamber, but listened to presentations and public comment anyway.  First on the agenda was Roger Duncan, general manager of Austin Energy.

Roger started out by laying out the basics of the proposed solar plant and how it would fit in with the City’s strategic energy plan.  The City plans to get 100 MW of its power from solar energy by 2020.  The first goal in this process was to install 15 MW of solar power by 2007.  We missed that stepping stone — Roger said we currently have 1.5 MW of solar installed on rooftops throughout Austin.  The next goal in line is to get 30 MW by 2010.  If the proposed project is approved, and built within the expected 18 months, Austin will be right on schedule to meet that goal. (more…)

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Hip-hip- HOORAY! After a series of informative, provocative presentations and public comments this morning, the Austin City Council voted unanimously to DECLINE participation in the South Texas Nuclear Project’s expansion plan.

Austin has a 16% stake in the current South Texas Nuclear Project, and has been questioning for months whether it should be a financial participant in new plans to double the capacity of that plant.  Months ago a consultant firm, Worley Parsons, was hired by Austin Energy to investigate whether this would be a good idea for Austin’s future.

First to present was Roger Duncan, general manager of Austin Energy.  He gave a presentation on the consulting firm’s recommendations.  We learned the following:

  • The proposed expansion would generate an additional 436 MW for the City of Austin.  Estimated cost: $2 billion.
  • Under a worst case scenario (of cost overruns, delayed construction, etc), power generated from the new boilers would cost 13 cents/kwh.  Under the best of circumstances (everything was beautiful and nothing hurt), electricity would cost 6 cents/kwh.  The firm’s most realistic, expected scenario would price out at around 8 and a half cents/kwh — however, it should be noted that Worley Parsons is a pro-nuclear consulting firm, so these are likely the most conservative of estimates.

The consulting firm concluded that with only a 16% stake in the project, Austin Energy would have insufficient owner protection from the scheduling, cost, contractor and regulatory risks involved in the project.  For example, if significant cost overruns did occur, Austin Energy would not have any vote or say in the matter of how to proceed.  Furthermore, large capital costs would be associated with the project throughout 2016 — but none of that cost risk would be within Austin Energy’s control.  The firm also warned of a potential downgrade of Austin Energy’s bonds because of the extended time period of debt issuance without cost recovery.

Because of the significant amount of unacceptable risk associated with the the expansion project, Worley Parsons recommended that Austin NOT participate.  As an Austin Energy spokesman Mr. Duncan announced that the utility had reached the same conclusion with the additional reasoning that Austin has no need for the 432 MW of base-load power that the project would eventually supply.  We wouldn’t even know what to with all that power.  Austin Energy also expressed concerns (rightly so!) that the nuclear waste issue remains unresolved. (more…)

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Ever wonder what Public Citizen is telling your Austin City Council members?  Wish, granted!

scroll1Feb 11, 2009

Dear Council Member,

Will Austin remain a renewable energy leader or will it fade into the background as San Antonio, the Texas Legislature, and the Federal government move ahead to turn crisis into opportunity? Decision makers from all levels of government recognize that investing in clean energy projects will not only stimulate the economy but also combat climate change and localized pollution. Why would Austin pass this up?

We urge City Council to act now to approve the Webberville solar plant. We recognize the fact that the city faces an anemic budget this year due to reduced sales tax revenue. Since Austin Energy operates on a separate budget, it is in an advantageous position to keep its solar plans intact and on time.

Solar energy’s benefits far exceed its costs even during these uncertain economic tifcmes when you consider several factors: (more…)

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Time to show your support for solar, and your opposition to new nuclear power!

On Thursday, Austin City Council will take up the issues of nuclear energy and solar energy. We can’t think of a better picture to illustrate the fork in the road we face when it comes to Austin’s energy future.

Item 3 on the City Council agenda: Austin Energy will appropriately recommend, again, that the City of Austin not invest in expansion of the South Texas Project. Austin Energy hired the pro-nuclear consulting firm Worley Parsons to examine the proposal, which concluded that Austin’s share of the proposed 3rd & 4th reactors would cost around $2 billion (that’s only 16% of the total, btw). Our solid credit rating would likely decline due to the large amount of debt the city would have to issue coupled with the high risk of cost overruns and schedule delays typically associated with nuclear power plants. Furthermore, the addition of 432 megawatts of baseload nuclear power does not fit with Austin’s projected electric demand forecast. This deal didn’t make sense in 2007 or 2008. It makes even less sense in 2009.

New nuclear power economics are frightening (several cost estimates put new nukes in a category by themselves), and it’s a down right nasty way to make electric power. Uranium mine sites plague groundwater sources, there is no plan in place to deal with the waste, and Texas can ill-afford to devote its precious water resources to running a radioactive water boiler.

We don’t need to go down the nuclear path again. We’ve learned from the mistakes of previous councils. Remember, Carole Keeton McClellan [Strayhorn] was mayor of Austin (1977-1983) when the city trapped itself in the boondoggle that was the first two units at STNP. Read the Austin Chronicle article from 2006 on her (scroll down to “Nailed to the Nuke”).

She is running for mayor again, which means this becomes a radioactive campaign issue. Where do Leffingwell and McCracken stand on the issue? Stay tuned.

Better options exist. Come out and voice your opposition to new nuclear power.

solar-array

Item 16 on the City Council agenda: Austin Energy will recommend that Council approve a plan to invest in 30 megawatts of solar power from the proposed solar plant near Webberville. This project is a good start down the path toward a renewable energy future for Austin. The 25 year $250 million contract with California-based Gemini Solar Development Company will provide Austinites clean, renewable power from one of the largest photovoltaic arrays in the world. Solar beats new nuclear power on cost, environment and meeting peak demand.

Solar power may seem expensive, but compared to what it costs to run natural gas plants to cover the same peak period and its associated environmental impacts, it’s a winner.

Some have raised objection to the fact that the solar panels are not local. Buying local is always preferable, but it’s not always feasible. There are no Texas companies that can currently manufacture panels for this sized plant. And while a California company has gotten the first contract because of California commitment to solar, local contractors and products can be used to construct and maintain the facility. Austin will still own the land too. We hope that with more plants like this one, solar companies will get the message that Texas is open for business.

We expect a large pro-nuke/anti-solar crowd, so come out to City Council this Thursday, Feb 12, sign up to voice your support for solar power. Tell City Council you want more!

Council convenes at 10 AM.

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towncrier3asWant Austin to do think outside the box on energy efficiency?

Think we should invest in storage technology to store all that beautiful wind and solar energy?

Want to see city hall but never had a reason to?

On Wednesday, Jan 28, Austin Energy will host a town hall meeting at city hall (301 W. 2nd Street) to solicit public comments and input on their future energy planning.  Here’s the full schedule.  If you can’t make one, make the other.

January 28, 2009 (Wednesday) City Hall Council Chambers (301 West 2nd Street); 6-9 PM

February 3, 2009 (Tuesday) Town Lake Center – Assembly Room (721 Barton Springs Road)

February 5, 2009 (Thursday) Carver Branch Library  (1161 Angelina)

Public Citizen, in case you were unaware, recommends mega energy efficiency programs (since there’s so much available in Texas), larger investment in renewable power (especially solar), and development of energy storage technologies like compressed air energy storage, thermal storage, advanced batteries, ultracapacitors, and flywheels.  Learn more here.  Austin Energy’s info is here.

-Matt

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Got a few seconds? Austin Energy has a survey tool on the Austin Smart Energy website to solicit feedback on their current energy mix and where to get new energy.

Public Citizen is a stakeholder in the process.  We will do our best to advocate for lots of renewables and more efficiency.

And coming soon, for the extra nerdy, the site will have a sim game where you can play the role of GM Roger Duncan and simulate different future energy scenarios. I can’t wait! I might make pewter figurines of utility planners and stay up all night drinking Dr. Pepper.

-Matt

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Austin City Council will soon deliberate on the recommendations from the Energy Efficiency Retrofit Task Force: a group of stakeholders charged with coming up with ways to make more homes and businesses in the city more energy efficient.

The central recommendation of the Task Force is to require energy audits to be performed on all commercial and multi-family (think apartment buildings) properties within two years of implementation of the ordinance. Single-family homes would have a similar requirement, but it would take effect when a home is put up for sale.

Energy audits (which cost about $200-$300) are performed by Austin Energy certified professionals and include a visual inspection plus duct testing to analyze a building’s energy efficiency. Building owners or prospective buyers could then take advantage of a voluntary program of energy efficiency upgrades, that are loaded with rebates and incentives provided by Austin Energy.

This is good news for Austin consumers because Austinites have a right to know about the energy efficiency of a home, and ways they can save money. Housing affordability is not just the mortgage. It’s utilities too. For example. if you were a prospective home buyer, which house would you choose if these were the same price and right next to each other?

Which one would you choose if you knew that the first house paid $200 in monthly utilities and the second one paid $100? Energy audits make this information available so consumers can make more informed decisions like the one you just did.

But what about renters? Renters can’t make energy efficiency improvements beyond changing a few lightbulbs because they don’t own the property they live in. Concurrently, apartment building owners, don’t have a great financial incentive to make energy efficiency improvements because they don’t pay the utility bills.

That’s why, if after two years multi-family building owners are not taking advantage of the energy efficiency incentives from Austin Energy, City Council should make efficiency upgrades a requirement for multi-family properties. By strengthening the task force recommendations this way, Austin will be acting in the best interests of ratepayers…

…oh yeah, and reducing greenhouse gases.

-Matt

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CPS Energy stakes its energy planning credibility on the fact that it has the lowest energy bills in Texas – even lower than those Austin people who get energy from hugging bunnies.

But WOAI crunched the numbers and last month, Austin Energy beat ’em. Check out the write-up and video here.

-Matt

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