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Posts Tagged ‘LSAC’

Austin Energy Ratepayers Rally for a Transition to Affordable Renewable Energy Photo by Al Braden

Austin Energy Ratepayers Rally for an Accelerated Transition to Affordable Renewable Energy
Photo by Al Braden

Read this post, then click here if you want to submit comments online to Austin Energy.

With 2 stakeholder meetings behind us and the final one ahead this afternoon, a lot of people are wondering what the purpose of of updating the Austin Energy Resource, Generation and Climate Protection Plan is if we aren’t going to update the goals in it.

To be fair, Austin Energy has done a decent job of providing information about how it is progressing with achieving current goals, and giving people an opportunity to share their views and ask questions.

What is so disconcerting though, is that Austin Energy has attempted to craft the whole update to exclude what is arguably the most important elements of the Resource, Generation and Climate Protection Plan – setting new goals for carbon reduction and renewable energy.  We’re told we can submit proposals that will be analyzed and considered for some future update, but that there’s not enough time to update those goals now.  Not enough time?  We’re only 2 months in to 2014 and Austin Energy has been talking about this update since mid 2013.  Let’s hope Austin Energy is more nimble than its giving itself credit for.

2014-02-26-Front-Page-Austin American-Statesman

Read the excellent coverage we got in the Austin American-Statesman yesterday.

When it comes to solar energy, this idea that no new goals will be set is especially frustrating because the issue has been postponed for 2 years now.  Increasing Austin Energy’s solar goal was on the table during the 2012 rate case, but Austin Energy wanted the issue studied.  So City Council established the Austin Local Solar Advisory Committee (LSAC) to study options for a way forward for solar in Austin.  The LSAC recommended several changes, including doubling the 2020 solar goal to 400 megawatts.   It’s important to note that the LSAC analysis showed that increasing the goal would actually result in net savings to Austin Energy ratepayers, as well as a net of $300 million in economic benefits to the Austin area.  When we tried to get that recommendation adopted in 2013, Austin Energy said it would be best taken up in the 2014 Generation Plan update, so City Council split the difference and passed a resolution recommending that the goal be adopted.  Now Austin Energy says that it doesn’t intend to update any of it’s goals as part of this process.  I’m starting to feel like the kid in the car on a long road trip and mom and dad just keep saying “we’re almost there.”  After you hear that a few times, you just stop believing.

When it comes to the overall renewable energy goal, Austin Energy’s resistance to increasing it as part of this process makes even less sense for 2 reasons.  First, renewable energy has become cheap energy.  Wind is our cheapest energy option and solar is now competitive with natural gas, but without the risks of rising fuel costs and pollution.  Second, Austin Energy has contracts that will allow it to meet it’s current 35% renewable energy goal 4 years early in 2016.  They should build on that success and expand the goal to 50% for 2020 and 60% for 2024.

For anyone who isn’t stuck at work or class from 1pm to 3pm today, I suggest going to the last of Austin Energy’s 3 scheduled stakeholder meetings.  Just don’t let them box you into a corner where the important issues are off the table.  Tell the leadership and staff there that you want all of the goals updated over the next few months.

If you can’t go, then click here to submit comments online to Austin Energy.

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Business leaders, environmentalists and low income advocates are behind a push to get Austin to increase its solar energy goal to 400 megawatts by 2020 and expand solar programs to meet that goal.

A diverse group of community leaders appointed to the Local Solar Advisory Committee (LSAC) by City Council examined solar opportunities in Austin and unanimously recommended that we double our 2020 solar goal, creating an estimated $300 million in net economic benefits and staying well within our current affordability goals.

“The Austin Energy leadership is saying we can’t afford to do this now,” says Tom “Smitty” Smith, director of Public Citizen’s Texas office.  “But they are only looking at replacement power costs.  The value of solar is far more than replacing wholesale power.  It increases revenue for the city from off system sales of peak power we won’t need at home. Expanding solar goals will mean reduced costs for peak power, fuel, hedging, insurance, maintenance and transmission, as well as reduced water use and pollution.  The LSAC looked at all of those factors and that’s why the business, solar and environmental community all agreed that we should expand our goals now.”

2013-08-06 400MW Solar is 5.2-6 Percent of Austin Energy Demand by 2020 (sun pie graph)The LSAC report shows that expanding the solar goal to 400 MW by 2020 – which would meet 5.2-6% of Austin Energy’s electric demand – would be affordable.  Current affordability limits are set at 2% of anticipated utility revenue and the solar program would never go beyond 0.31% – likely less, according to the LSAC report and would reduce costs by 2020.  The affordable nature of the plan is what got low income advocates to support it.

Susan McDowell, executive director at Lifeworks supports the expansion of Austin’s solar goals.  “Keeping up with rising electric bills is a struggle for many working families, especially in the summer.  Solar is cheaper over the long run and can ease that pressure.  We need more solar programs geared toward working families, including those who rent.”

Instead of embracing the recommendations, Austin Energy has proposed a 42% cut to its solar rebate program for fiscal year 2014, from $7.3 million to $4.2 million.  Supporters of the LSAC recommendations are asking City Council to move in the opposite direction and expand the solar budget to $10 million dollars.

We need a solar budget large enough to meet demand. This year, Austin Energy reduced the solar rebate to avoid running out of money before the year was over.  Solar is becoming more popular and we should take advantage of that.

While the LSAC did envision an eventual reduction and end to solar rebates, the Committee recommended investing more now to establish the industry in Austin and take advantage of a 30% federal tax credit for solar installations.

“Low solar prices, coupled with the 30% federal tax credit, give us the opportunity to get more solar installed for each dollar spent than ever before,” says BJ Stanbery, CEO of Heliovolt.  “And unlike most of the other energy sources we rely on, our investment in solar feeds into our local economy.  The time to establish the Austin solar business cluster is now because the 2016 federal ITC reduction from 30% to 10% is setting the timeline for industry maturation.”

The solar industry has already created hundreds of jobs in Austin, many of them in installation.  Solar installation companies are small, locally owned business and the jobs they create can’t be outsourced.

Carey Ibrahimbegovic, president and CEO of Greenbelt solar says, “We’re working hard to bring solar to as many families and business as we can and we’re creating good local jobs as we do that.  Austin area solar companies already employ over 600 people and meeting a 400 MW solar goal will create an estimated 420 new local direct and induced jobs each year from 2013 to 2020, with an average increase in local annual payroll of over $10 million.”

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