Austin City Council has approved a controversial $1 billion plan to build natural gas plants. Austin Energy officials say the plants are necessary to prevent power shortages and extreme price spikes during severe weather and grid emergencies. Austin Energy officials say the plants are necessary to prevent power shortages and extreme price spikes during severe weather and grid emergencies.
The council also authorized Austin Energy to move forward with wind and battery projects to add more power generation. The utility faces soaring demand and mounting financial pressure, and officials argue the gas plants will help protect residents and the utility from increasing costs. The utility faces soaring demand and mounting financial pressure, and officials argue the gas plants will help protect residents and the utility from increasing costs.
Critics argue the decision threatens Austin's climate goals, commits the city to more fossil fuel use, and raises transparency concerns because basic details have not been publicly disclosed. Critics argue the decision threatens Austin's climate goals, commits the city to more fossil fuel use, and raises transparency concerns because basic details have not been publicly disclosed.
The gas plants will replace aging plants from the 1970s, allowing for cleaner and more efficient power generation during emergencies. Austin Energy's analysis found that without increased locally generated energy, power costs could rise to 100 times their normal levels in hot summer months.
Mayor Kirk Watson and Council Member Marc Duchin raised concerns that a financially weakened Austin Energy could become a target for state intervention. (Mayor Kirk Watson and Council Member Marc Duchen have also raised a broader concern: that a financially weakened Austin Energy could become a target for state intervention.)
The council's authorization covers 400 megawatts from the gas plants and allows Austin Energy to negotiate for 399 megawatts from battery and wind resources. Now that the council has approved the projects, Austin Energy will begin the contracting process.