01 Oct Austin City Council Approves 300 MW of Solar

Guest Post – from Al Braden

Austin City Council reviewed plans for up to 600 MW West Texas solar at their October 1 meeting.

After an hour discussion – 9 hands raised in support of action authorizing 300 MW of solar power to be built and contracted in West Texas. This Purchased Power Agreement (PPA), was a strong committment of Council following recommendation from Austin Energy, the Electric Utility Commission and the Resource Management Commission. Its estimated 3.8¢ per KWH is the lowest price solar bid yet seen in this growing sector. The guaranteed rate was well below Austin Energy’s average cost of power – 4.6¢ in 2013. The contract is poised to have a very small rate bump in 2017 and then begin to save ratepayers money in the coming years as fossil fuel prices rise and its rate remains fixed.

This action follow Council Member Delia Garza’s resolution 77 of September 17 requiring Austin Energy to provide recommendations on up to 600 MW of utility solar. That action was broken into two parts. The first was for 300 MW at the low 3.8¢ price range and the next – Item 5 on the agenda – was for 300 MW at the next best available bids – rumored to be around 4.2¢ per KWH.

Mayor Adler took charge of the conversation on the dais, repeatedly clarifying with speakers the values of the first 300 MW and separating the second for further negotiation, study and decision.

As a result the second batch – or tranche in utility lingo – was discussed and then postponed until the October 15 Council meeting. As the Mayor made clear, this will give Austin Energy time to finalize negations and see if they can get the second handful of contracts closer to the first. They will also meet in executive session with the Resource Management Commission and Electric Utility Commission to further analyze the contracts and determine how they would be advantageous to Austin.

Their recommendations will be made to Council in advance of the October 15 meeting in sufficient time for Council members and their staffs to properly evaluate them. At that time additional contracts up to 300 MW could be approved which would demonstrate Austin’s dual commitments to renewable energy and affordability.

Plan to attend that meeting in support additional solar energy. This is finally the day that affordable solar power can compete head on with fossil fuel plants!