21 Feb A simple policy proposal for the Generation Plan for Austin Energy that will get us where we want to be

Dear Mayor, City Council members, and supporting staff,

The discussion around Fayette and the generation plan is a good one to have. What is the right mix for Austin is the central question. We all know you have provided guidance in the past to Austin Energy what you expect to see from the operations. You have clearly set goals around affordability and climate protection. The regulatory framework from the state and federal government is also an important ingredient. I am asking you to change one of the ingredients in this recipe. I want you to provide Austin Energy with a clear pathway forward that provides Austin Energy with the freedom to find the best possible way to meet this new requirement without you having to be specific as to how to comply. It is also a pathway that is consistent with the timeframe of capital investment which tend to extend over decades when it relates to PPA contracts for wind and utility scale solar (20 years) and fossil fueled powered thermal power plant (30-50 years). It is also a pathway that will warrant that we are at our best in implementing energy efficiency, adopting more and more renewable power, cleaning our air and fighting climate change.

I am proposing to adopt one simple resolution.

It is based on the simple premise that we need to deal with climate change. The best way to do this is to not emit any greenhouse gasses. Several US cities are adopting climate change goals that range from 35% by 2030 to 100% by 2050. The implication for our electricity system is that we need to make it more and more based on renewables. The current plan of Austin Energy adds more renewable energy, but the growth, if extended in a straight line over time will get us to 100% renewable energy by 2070. It represents a growth of 1.3% per year. That is too late. The general accepted goals need to be at 80% by 2050 to keep us under 2 degrees warming which gives us a 50% change to stay under what is called tipping points that we do not want to cross. To be a little bit safer, and assuming not all of the world will do this, we need to show a bit more leadership. My conclusion is that the current proposal is not ambitious enough. It is accepting that we will fail the challenges we are facing from climate change. I am not ready to do that. And we do not have to.

Here is what I am proposing: adopt a resolution that asks Austin Energy to increase the share of renewable energy in the generation portfolio by 2.8% per year with 2013 as the base year. This will get us to 100% renewable energy by the year 2040.

This simple ingredient changes the guidance from the 2007 Austin Climate Protection Plant and provides a clear new boundary condition to take Austin Energy beyond the 35% renewables it is about to achieve. Kudos for that leadership. Both form you and Austin Energy as it is a very important step. But we need to make some more. And you can set the boundary conditions going forward.

My ask to you is to adopt this resolution and ask Austin Energy to come up with generation plans for the 2020 horizon that meet this requirements and to find out what the best way forward is. Instead of being too prescriptive about some of the ingredients that go into a generation plan, we just tell Austin Energy to put their best engineering and planning to work to meet this new policy direction. This way we do not sit on their seat, but we will get what we need as a city, as citizens and even future citizens.

I believe this simple resolution will enable us to grow our wind and solar portfolio, will allow appropriate attention to energy efficiency, will lead to a balanced approach for the fossil fuel based generation, provides a framework that is workable for Austin Energy and provides a pathway forward that is as smooth as we can make it and not a bumpy ride with all sorts of legal and financial restrictions attached.

If you accept the basic premise of this proposal and feel this can be a viable option taking us forward, then please reach out and we can find out what details we need to cover to make this a reality.