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Posts Tagged ‘matthew johnson’

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.

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In case you didn’t catch our editorial in the San Antonio Express News this summer, it’s worth repeating.

NUCLEAR REACTORS ARE TOO EXPENSIVE

By Matthew Johnson – Express-News Guest Voices

CPS Energy announced its cost estimate for two more nuclear reactors at the South Texas Project near Bay City last week. The $13-billion price tag is the latest estimate in a sustained and systemic low-balling by utilities wishing to receive government subsidies.

CPS’ partner, NRG Energy, recently pegged the cost of units 3 and 4 at $10 billion, a figure that has jumped nearly 50 percent from its original estimate of $5.4 billion.

Other analyses, however, have estimated the cost of two new reactors to be nearly 100 percent higher than the CPS estimate. Former Texas Office of Public Utility Counsel official Clarence Johnson recently estimated the cost of STP expansion to be $20 billion to $22 billion, while nuclear engineer and president of the Institute for Energy and Environmental Research Dr. Arjun Makhijani estimated a cost of up to $17.5 billion in 2008.

A new study by Mark Cooper, of the Vermont Law School, analyzed numerous cost estimates of the so-called nuclear renaissance beginning around 2001. He discovered that early estimates of new nuclear reactors were made predominantly by industry and academics and were optimistic and eager to rejuvenate the industry.

Since then, utilities’ estimates have shown similar wishful thinking, but continue to rise. Independent analysts and Wall Street, Cooper shows, offer the most realistic estimates that are much higher.

The history of the STP expansion effort follows this pattern. CPS and NRG have been attempting to gain support in federal, state and city government since they submitted their application to build two new reactors to the Nuclear Regulatory Commission in 2007.

Wall Street estimates also place a similar and continuously rising price tag on new reactors. The bond-rating agency Moody’s predicted $5,000-6,000 per kilowatt for new reactors almost two years ago, which translates to $16.2 billion for STP expansion, and recently indicated that it could downgrade bond ratings on utilities constructing new nuclear reactors.

The federal government established an $18.5 billion subsidy to back loans taken out to construct new reactors. STP expansion advocates brag about being on the short list for part of these loan guarantees, but proponents and opponents agree that more reactors won’t be built if the feds don’t pony up the dough.

The reason is simple. Investors are squeamish to lend money for projects with such a high risk of defaulting on repayments. Delay and cost overruns increase risk. STP’s original reactors took eight years longer than planned to complete and costs soared six times over original estimates.

CPS Energy has faster and cheaper alternatives. Their recent announcement on the 27 megawatt solar plant in West Texas, the Mission Verde plan to develop 250 megawatts of solar and new wind contracts plus their goal to save 771 megawatts through energy efficiency by 2020 are shining examples of the path they should focus on to keep rates stable and low in the future. This path also creates more local jobs.

City Council will soon have to decide on San Antonio’s involvement in new reactors. It must vote no on nuclear to protect San Antonians from bearing the overwhelming economic burden of building costly, dangerous and unnecessary nuclear reactors.

Matthew Johnson is an energy policy analyst for Public Citizen’s Texas office.

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Last week San Antonio’s CPS released their cost estimate for the proposed South Texas Project Nuclear Expansion, and we found their numbers naive optimistic ignored history wanting.  To find out why, check out this Guest Column, printed in today’s San Antonio Express-News, from Public Citizen’s own Energy Policy Analyst Matthew Johnson.

Matthew Johnson: Why not cheaper, safer sources of energy?

Matthew Johnson: Why not cheaper, safer sources of energy?

Nuclear reactors too expensive

By Matthew Johnson – Express-News Guest Voices

CPS Energy announced its cost estimate for two more nuclear reactors at the South Texas Project near Bay City last week. The $13-billion price tag is the latest estimate in a sustained and systemic low-balling by utilities wishing to receive government subsidies.

CPS’ partner, NRG Energy, recently pegged the cost of units 3 and 4 at $10 billion, a figure that has jumped nearly 50 percent from its original estimate of $5.4 billion.

Other analyses, however, have estimated the cost of two new reactors to be nearly 100 percent higher than the CPS estimate. Former Texas Office of Public Utility Counsel official Clarence Johnson recently estimated the cost of STP expansion to be $20 billion to $22 billion, while nuclear engineer and president of the Institute for Energy and Environmental Research Dr. Arjun Makhijani estimated a cost of up to $17.5 billion in 2008.

A new study by Mark Cooper, of the Vermont Law School, analyzed numerous cost estimates of the so-called nuclear renaissance beginning around 2001. He discovered that early estimates of new nuclear reactors were made predominantly by industry and academics and were optimistic and eager to rejuvenate the industry.

Since then, utilities’ estimates have shown similar wishful thinking, but continue to rise. Independent analysts and Wall Street, Cooper shows, offer the most realistic estimates that are much higher.

The history of the STP expansion effort follows this pattern. CPS and NRG have been attempting to gain support in federal, state and city government since they submitted their application to build two new reactors to the Nuclear Regulatory Commission in 2007.

Wall Street estimates also place a similar and continuously rising price tag on new reactors. The bond-rating agency Moody’s predicted $5,000-6,000 per kilowatt for new reactors almost two years ago, which translates to $16.2 billion for STP expansion, and recently indicated that it could downgrade bond ratings on utilities constructing new nuclear reactors.

The federal government established an $18.5 billion subsidy to back loans taken out to construct new reactors. STP expansion advocates brag about being on the short list for part of these loan guarantees, but proponents and opponents agree that more reactors won’t be built if the feds don’t pony up the dough.

The reason is simple. Investors are squeamish to lend money for projects with such a high risk of defaulting on repayments. Delay and cost overruns increase risk. STP’s original reactors took eight years longer than planned to complete and costs soared six times over original estimates.

CPS Energy has faster and cheaper alternatives. Their recent announcement on the 27 megawatt solar plant in West Texas, the Mission Verde plan to develop 250 megawatts of solar and new wind contracts plus their goal to save 771 megawatts through energy efficiency by 2020 are shining examples of the path they should focus on to keep rates stable and low in the future. This path also creates more local jobs.

City Council will soon have to decide on San Antonio’s involvement in new reactors. It must vote no on nuclear to protect San Antonians from bearing the overwhelming economic burden of building costly, dangerous and unnecessary nuclear reactors.

Matthew Johnson is an energy policy analyst for Public Citizen’s Texas office.

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lightbulbThe Houston Chronicle ran an Op-Ed Sunday entitled An energy winner: Big savings are possible by upgrading efficiency goals. Authors: Public Citizen’s Tom “Smitty” Smith and Matthew Johnson.  Check it out:

In the world of energy, there’s one clear winner when it comes to cost, cleanliness and speed: energy efficiency.

Although regulated utilities in Texas, with few exceptions, met or surpassed all energy efficiency goals set by the Legislature in 2007, this is not the time for Texans to get complacent.

Rather, it’s time to increase our energy efficiency goals and give utilities more tools to achieve new, more aggressive targets. In this time of economic uncertainty and out-of-control utility bills, homes and businesses across Texas deserve more action.

Last year, the Public Utility Commission of Texas completed a study of the state’s energy efficiency potential. Conducted by the independent firm Itron, it concluded that there’s room for Texas to reduce its energy use by 18 percent. We could save even more during times of peak demand. The study also reported that if the Texas Legislature sets higher goals for energy savings, consumers could save $4 billion to $12 billion on utility bills over the next 10 years. (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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