19 Oct Benefits of the “Quit Coal by 2014” scenario — 2. Flatter Rates

Replacing Austin’s coal plant offers the possibility of rate stabilization on a significant portion of your monthly bill. By replacing coal with clean, Austin would eliminate the volatility of coal’s market fuel costs from monthly bills. This should appeal to rate payers big and small. Over the last 10 years, Austin’s coal fuel costs are up 138%, (1) while the sun keeps shining, the wind keeps blowing, and our energy efficiency investments keep conserving — for free.

Background
In 2008, Austin’s coal fuel costs rose 73% from $50 to $87 million. (1) Purchasing fuel for Austin’s coal plant is apparently a volatile business. But forecasting in Austin Energy’s recommended generation plan assumes future (coal fuel) costs will drop 30% — and never again increase for 10 years.

Is this a reasonable assumption?

Alternatively, Austin Energy’s Pace consultancy recently created a Quit Coal by 2014 scenario which highlights how shuttering Austin’s coal plant and replacing it rooftop solar and energy efficiency would eliminate coal fuel’s volatile effects on our bills. Solar panels and energy efficiency “don’t need any fuel.” In fact, their fuel is free. The 2014 scenario replaces our 20th century clunker coal plant with clean technologies that have zero fuel costs — and zero fuel volatility, for life.

Austin Energy hired the Pace consultancy to explore numerous scenarios re: Austin’s electricity, 2010 to 2020. That firm recently ran the “2014 Scenatio” because several members of Austin’s Generation Task Force contend — shutting Austin’s coal plant ASAP is more cost effective than keeping it burning.

Pace reported that shuttering Austin’s coal by 2014 and replacing it with local rooftop solar, energy efficiency, and West Texas wind will cost bill payers about 5% more than the current plan. ($6 per month for most residents.)

Is it worth a 5% bill increase?

Summary
Replacing Austin’s coal plant offers the possibility of rate stabilization on a significant portion of your monthly bill — and beginning the move towards a complete portfolio of zero fuel cost technologies. By replacing coal with clean, Austin would eliminate the volatility of coal’s market fuel costs from monthly bills. This should appeal to rate payers big and small. Over the last 10 years, Austin’s coal fuel costs are up 138%, while the sun keeps shining, the wind keeps blowing, and our energy efficiency investments keep conserving — for free.

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For more on this, please check out my full BOR post http://tinyurl.com/yjna5z4 and our Fb group: http://tinyurl.com/yjpruvb.

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Notes
1) PowerSmack: http://powersmack.org/coal-fuel-costs-are-rising/ Shows extract from Austin Energy report. PowerSmack, “In the past 10 years, Coal fuel costs rose from $37 to $87 million (up 138%). In FY2008 alone, Coal fuel costs jumped from $50 to $87 million (up 73%).”

Thanks for reading, Chris