Newsletter Signup
The Austin Monitor thanks its sponsors. Become one.
Most Popular Stories
- Austin’s airport is getting a new concourse and 20 more gates but not until the 2030s
- New rules in the works for electric vehicle charging stations
- Judge rules city can’t use taxpayer money for South Central TIRZ
- Budget deficit looms over city this year and beyond
- Save Our Springs Alliance sues City Council over Open Meetings Act
-
Discover News By District
Austin Energy seeks new power purchase agreement
Thursday, June 22, 2017 by Sommer Brugal
Austin Energy requested the approval of a 15-year power purchase agreement at the Electric Utility Commission meeting Monday evening. The recommended purchase is for 200 megawatts of utility-scale, wind-generated electricity capacity expected to cost $17.5 million per year. It is estimated to cost a total of $262.5 million. Khalil Shalabi, Austin Energy’s vice president of energy market operations and resource planning, explained why the utility feels it’s a good time to enter into a power purchase agreement. “The reason we’re doing it now is because the production tax credits are to be rolled off by the federal government unless they’re extended another time,” said Shalabi. He said this technology is quite mature and prices for such technologies aren’t expected to go down. Still, many commissioners questioned the higher-than-usual price. According to Shalabi, though, the utility stands to gain because this project is set to generate high revenues. “This particular project is a coastal wind project, and we saw that it really did generate a lot of revenue during peak hours during the day,” he said. The commission passed the request unanimously, and the proposal is scheduled for discussion before City Council today.
Join Your Friends and Neighbors
We're a nonprofit news organization, and we put our service to you above all else. That will never change. But public-service journalism requires community support from readers like you. Will you join your friends and neighbors to support our work and mission?