By Cyrus Reed, Conservation Director
In an extraordinary (and long) joint meeting of Austin’s Resource Management Commission (RMC) and Electric Utility Commission (EUC) last night, both bodies took slightly different approaches to send a simple message to Austin City Council: buy more solar.
The special called meeting was the result of a directive issued by City Council on October 1 for the two bodies to review additional solar contracts from an April Request-for-Proposals (RFP) by Austin Energy for up to 600 MW of solar. City Council approved a first batch of solar contracts for up to 300 MW (widely reported to be 288 MWs) and ordered the special meeting based on slightly less favorable reported prices for a second batch of proposals.
Before the two advisory bodies went into executive session to receive a presentation from Austin Energy on costs, revenues, and potential impact on an average 2017 bill, the committees heard citizen communication from four citizens – including Sierra Club members Dave Cortez, Al Braden, and Susan Lipmann – all of whom urged additional solar purchases while considering both the impacts on ratepayers and the city’s plans to retire the Fayette coal plant and Decker Creek natural gas plant. Long-time activist Paul Robbins urged caution in acquiring more solar if it could not be obtained at lower prices, since he believed solar prices would continue to decline opening up the potential for ownership directly by Austin Energy.
Surprisingly, all the proposed contracts had generally favorable pricing similar to the contracts already approved by City Council, though the final two batches of solar had slightly less favorable pricing. While there was considerable back and forth among commissioners, most of them favored purchasing more solar.
EUC
Still, the two bodies took slightly different approaches. The EUC simply stated that City Council should direct Austin Energy to approve 250 MW of solar at the best prices it could obtain. The motion was made by Carol Biedrzycki (appointed by Council Member Leslie Pool) and seconded by EUC Vice-Chair Karen Hadden (appointed by Council Member Ann Kitchen). The motion was approved on a 7-3 vote, with Commissioners Cary Ferchil (appointed by Mayor Steve Adler), Michael Osborne (appointed by Council Member Kathie Tovo), Stefan Wray (appointed by Council Member Pio Renteria), Ruby Roa (appointed by Council Member Greg Casar), and Shudde Fath (appointed by Council Member Delia Garza) joining in support. Commissioners Brent Heidebrecht (appointed by Council Member Sheri Gallo), Derrick Norris (appointed by Council Member Ora Houston), and Mary Katherine Stout (appointed by Council Member Ellen Troxclair), voted against the proposal. One Commissioner was absent.
If City Council were to adopt the approach suggested by the EUC on October 15, it would direct Austin Energy to add 250 MW of solar to the 288 MW reported to have been contracted on October 1, meaning Austin could have a total of 538 MW of new solar capacity potentially operational by the end of 2016.
RMC
The RMC took a slightly different approach, recommending that City Council direct Austin Energy to contract at least 101 MW, but up to an additional 312 MW of solar as long as the expected impact on the Power Supply Adjustment (PSA) did not exceed 1.01 percent in 2017 for any rate classes. However, if that guideline would mean that Austin Energy would not achieve its 600 MW solar goal, the resolution would direct Austin Energy to present a plan to City Council by January 2017 on how to get to 600 MW either through additional contracts or ownership. Information provided by Austin Energy indicated that such an approach would likely lead to an additional 150 MW of solar being contracted by the end of 2016 for a total close to 450 MW. (see Table)
The motion to approve the resolution, made by the Sierra Club’s Cyrus Reed (appointed by Council Member Kathie Tovo), was seconded by Luke Metzger (appointed by Council Member Ora Houston). After a long discussion, the resolution was approved on an 8-1 vote, with Kaiba White (appointed by Council Member Delia Garza) opposing. White preferred to recommend batches of contracts with similar prices.
On Thursday, City Council is expected to take up the additional solar contracts. Sierra Club is supportive of City Council contracting additional solar while keeping expected 2017 rate impacts low.
Resolution approved by EUC on a 7-3 vote
Austin City Council to authorize Austin Energy to contract to purchase an additional 250 MWs of utility scale solar power from among the lowest bids received.
Resolution approved by RMC on 8-1 vote
Austin City Council should direct Austin Energy to contract at least 101 MW and up to 312 MW of additional solar based on the contracts described as “up to 350 additional MW of solar,” as long as the maximum expected PSA impact of all solar contracted in 2015 on all rate classes would be less than or equal to1.01 percent in 2017. Furthermore, to the extent 600 MW of total solar is not contracted in 2015, Austin Energy should present an updated plan for acquiring or owning any additional solar to City Council no later than January 31, 2017.
Let City Council know you support more solar!
This Thursday, October 15, Austin City Council will be voting on agenda item 3 to authorize Austin Energy to purchase more solar energy. Here are a couple of options available for you to show your support:
Speak Out: Click here to register "for" item number 3 on the Austin City Council agenda for Thursday October 15. The only information you will be required to provide is your name, the agenda item number, and indicate if you wish to speak at the meeting.
Show Up: Attend the City Council meeting and wear green to show your support!
WHEN: October 15 at 10am
WHERE: Austin City Hall (301 W. 2nd St.)
WHAT: Wear green to show the City Council that you support affordable solar energy.
Write to Council: Email your city council member
Address: (firstname.lastname@austintexas.gov)
Subject: Broad support for more solar and item #3
Body: (see sample language below, or write your own!)
Dear Council Member (find your councilmember here),
My name is ____ and I live at ______ in District ___. Both the Resource Management Commission and Electric Utility Commission have adopted resolutions showing overwhelming support for another round of solar purchases of between 150 and 250 MW of additional solar, and I implore you to show your support as well by voting for item 3 this Thursday.
Both commissions were briefed by Austin Energy and based their decisions on affordability and reduced rate impacts. This next round of solar purchases will have a marginal impact on Austinites’ bills in the short term ($4 to $6 per year) while ultimately helping to reduce bills in the long run.
Thank you for your time and support,
__your name___
__phone number___
Photos courtesy of Al Braden (albradenphoto.com).
Editor's Note: This version has been updated to reflect more accurately Commissioner White's reason for opposing the resolution.