Welcome new AE GM & statement on City's energy future

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Leslie Pool
Posts: 231
Joined: Mon Jan 12, 2015 3:22 pm

Welcome new AE GM & statement on City's energy future

Post by Leslie Pool »

I’d like to welcome the new General Manager of Austin Energy Jackie Sargent back to Austin. Looking forward to meeting her and working on the various issues ahead.

Since Ms Sargent is coming to Austin in the middle of a rate case and us having just had the new Navigant report on feasibility of building a gas plant, I wanted to make a couple statements.

The consultant report from Navigant rates the gas plant in a virtual tie with wind and solar.

Our current gas plants are losing $60 million/year in the market.

Even with the wholesale market improving the case for a new $500 million gas plant has not been made, and - as Cyrus Reed just pointed out - we need to turn our focus toward preparing financially to defease our debt and close Fayette. The decision on whether to build a new gas plant will be made by the City Council, sitting as the Board of Directors of Austin Energy and on behalf of Austin ratepayers and stakeholders.

With our solar purchases we have made, we have adequate capacity to meet peak demand, even with the closing of Decker until 2021 or 2022.

I have previously stated my reluctance – if not actual opposition to – building a new gas plant. Gas plants are old technology and Austin needs to be looking beyond coal, beyond gas, to the future renewables markets with solar and wind. We should also be open to considering other power generation sources that may today be unknown to us. This Council made significant progress in that direction with our PPAs last year of close to 600 megawatts of solar. That was a big deal. We demonstrated our desire to move that direction and I’d like today to emphasize, to underscore my continued focus on renewables, and my belief that for us to achieve our NetZERO goals in the City's Climate Protection Plan, we must divest the city of the old fossil fuels and move boldly toward the clean future with renewables.
Leslie Pool
Mayor Pro Tem
Council Member, District 7