14 Oct Mayor to Solar Advocates – Put Your Heads Together
Guest Post – from Al Braden
Monday night saw a rare joint meeting of the Electric Utility Commission (EUC), led by Chairman Michael Osborne and the Resource Management Commission (RMC) led by it’s Chairman Leo Dielmann. Both expert citizen commissions were tasked by Mayor Adler and Austin City Council to evaluate and make recommendations on pending bids for up to 600 MW of West Texas utility scale solar.
At the October 1st City Council Meeting, proposals from Council Members and the EUC were up for votes. The first proposal called for authorization for Austin Energy (AE) to contract for up to 300 MW of utility scale West Texas solar at rates believed to be about 3.8¢ per KWH, or significantly below AE’s average cost of generation. It passed overwhelmingly 9-2. A second proposal for an additional 300 MW was also on the table, consisting of the next best bids that Austin Energy had received – rumored to be in the 4.2¢ range. The exact bids were confidential and time is of the essence as these bids as they are based on a 30% federal tax credit set to expire December 31, 2016. The tax credit requires the systems to be installed by that date. Contracts will have to be signed this month to meet the deadline.
Sierra Club’s Dave Cortez addresses joint commissions on the importance of keeping solar affordable for all classes of ratepayers, especially in the low income communities.
Recognizing the value of due diligence on such a large commitment, Mayor Alder tabled the vote until the October 15th Council meeting, allowing the EUC and RMC – to evaluate the actual bids in executive session and make recommendations. Each commission then met immediately after the confidential presentation by AE staff. Both recommended significant additional solar contracts, though their approaches differed.
EUC on a 7-3 vote pushed for 250 MW more based on the best of the 300 MW in additional bids. Apparently one bid in the group of bids submitted had been significantly higher and skewed the average. Removing it made the balance of the package a good value for Austin.
RMC, on a slightly different tack, voted 8-1 to recommend that additional purchases be made that would keep the Power Supply Adjustment (PSA) portion of the utility bill within a 1% increase. That number not certain at this point, but the best guess around 150 MW additional.
Both recommendations will be on the Council’s desk for a vote on Item 3 on Thursday’s meeting:
| 3. | Adopt a plan of achieving 600 megawatts of utility-scale, solar generation capacity by 2017 in addition to solar capacity currently existing or under contract, and to authorize negotiation and execution of power purchase agreements with qualified offerors for up to 350 megawatts of utility-scale, solar-generated electricity (for a total acquisition of approximately 600 megawatts of new solar capacity, if available and affordable) for terms of up to 25 years, for a combined estimated annual amount of $44,000,000 and combined total of $1,100,000,000. |
This is a time Austin can show real leadership – and provide stable electric rates.
ACTIONS to TAKE – Courtesy of Dale Bulla:
1—Come to City Hall on the 15th wearing a green shirt. Do this even if you don’t want to speak–you can still register your approval/yes-vote of agenda item #3 online on the computers outside Council Chambers. An audience full of people WEARING GREEN SHIRTS will be a strong message to the council members.
2—-The most important action you can take is #1, but if you can’t make it, please send an email to the entire city council with this link— https://www.austintexas.gov/ email/all-council-members
3——Sign up in support for item #3 on line, http://austintexas.gov/council_meetings/speaker_signup/speaker2.cfm
4—Then, CALL THE MAYOR–please, as he is a key vote on this issue. His number is 512-978-2100.
Let’s make the sun shine for all Austin electric customers!
No Comments