Austin Energy is a
publicly owned utility providing
electrical power
Electric power is the rate of transfer of electrical energy within a electric circuit, circuit. Its SI unit is the watt, the general unit of power (physics), power, defined as one joule per second. Standard prefixes apply to watts as with oth ...
to the city of
Austin, Texas
Austin ( ) is the List of capitals in the United States, capital city of the U.S. state of Texas. It is the county seat and most populous city of Travis County, Texas, Travis County, with portions extending into Hays County, Texas, Hays and W ...
and surrounding areas. Established in 1895, the utility is a department of the City of Austin and returns its profits to the city's
general fund to finance other city services. Austin Energy is the United States' 7th largest public utility, serving more than 500,000 customers and more than one million residents (as of 2019) within a service area of approximately , including Austin,
Travis County and a small portion of
Williamson County.
Energy generation
Austin Energy’s total generation capacity is more than 3,000 megawatts (MW), provided by a mixture of
wind power
Wind power is the use of wind energy to generate useful work. Historically, wind power was used by sails, windmills and windpumps, but today it is mostly used to generate electricity. This article deals only with wind power for electricity ge ...
,
solar power
Solar power, also known as solar electricity, is the conversion of energy from sunlight into electricity, either directly using photovoltaics (PV) or indirectly using concentrated solar power. Solar panels use the photovoltaic effect to c ...
,
biomass
Biomass is a term used in several contexts: in the context of ecology it means living organisms, and in the context of bioenergy it means matter from recently living (but now dead) organisms. In the latter context, there are variations in how ...
,
natural gas
Natural gas (also fossil gas, methane gas, and gas) is a naturally occurring compound of gaseous hydrocarbons, primarily methane (95%), small amounts of higher alkanes, and traces of carbon dioxide and nitrogen, hydrogen sulfide and helium ...
,
nuclear power
Nuclear power is the use of nuclear reactions to produce electricity. Nuclear power can be obtained from nuclear fission, nuclear decay and nuclear fusion reactions. Presently, the vast majority of electricity from nuclear power is produced by ...
, and
coal
Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other Chemical element, elements, chiefly hydrogen, sulfur, oxygen, and nitrogen.
Coal i ...
.
All of Austin Energy's generation is sold into the
ERCOT wholesale market; all of the retail load is served by purchasing power from ERCOT.
Generation assets
Austin Energy owns and operates two
natural gas
Natural gas (also fossil gas, methane gas, and gas) is a naturally occurring compound of gaseous hydrocarbons, primarily methane (95%), small amounts of higher alkanes, and traces of carbon dioxide and nitrogen, hydrogen sulfide and helium ...
-fired power plants in the Austin area: the Decker Creek Power Station and the Sand Hill Energy Center. The utility also owns 50% of units 1 and 2 at the
coal
Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other Chemical element, elements, chiefly hydrogen, sulfur, oxygen, and nitrogen.
Coal i ...
-fired
Fayette Power Project in
La Grange and 16% of the
South Texas Nuclear Project in
Bay City (near
Houston
Houston ( ) is the List of cities in Texas by population, most populous city in the U.S. state of Texas and in the Southern United States. Located in Southeast Texas near Galveston Bay and the Gulf of Mexico, it is the county seat, seat of ...
).
The STNP was the subject of a binding citizen referendum (November 3, 1981) to sell Austin's part in the project. STNP went online in 1986. No council has sold Austin's STNP, telling citizens that "no one wanted our 16 percent".
Austin Energy's 2030 generation resource plan called for the retirement of its share in the coal-fired Fayette Power Project by the end of 2022, but multi-year negotiations with co-owner
LCRA stalled in late 2021.
Renewable energy
As of July 2014,
renewable energy
Renewable energy (also called green energy) is energy made from renewable resource, renewable natural resources that are replenished on a human lifetime, human timescale. The most widely used renewable energy types are solar energy, wind pow ...
represented roughly 23% of Austin Energy's generation portfolio, which included wind, solar, landfill methane and biomass projects.
The utility's 2014 generation plan indicated that it aimed to produce 50% of power from renewable sources and 75% from carbon-free sources by 2025. Since that time, new green energy generation assets have rapidly been brought online. As of August 2019, green energy had jumped to 43% of Austin Energy's generation mix, and by February 2020 included 1,425.6 MW of wind turbines and 644.6 MW of solar panels.
On April 23, 2019, Austin Energy reached an agreement to purchase the Nacogdoches biomass facility for $460 million. Since Austin Energy entered into the 20-year Power Purchase Agreement with the biomass facility the price of natural gas has come down significantly. The purchase – one of Austin's single largest purchases ever – is anticipated to allow the city to avoid $275 million in additional costs.
Energy conservation
Austin Energy operates an
energy efficiency program to help customers identify ways to reduce their energy consumption and save on utility bills. The utility offers various subsidies and rebates for efficiency improvements, including
HVAC
Heating, ventilation, and air conditioning (HVAC ) is the use of various technologies to control the temperature, humidity, and purity of the air in an enclosed space. Its goal is to provide thermal comfort and acceptable indoor air quality. ...
,
insulation, efficient
lighting
Lighting or illumination is the deliberate use of light to achieve practical or aesthetic effects. Lighting includes the use of both artificial light sources like lamps and light fixtures, as well as natural illumination by capturing daylight. ...
, and
photovoltaic panels.
In 1992, Austin Energy developed the nation's first local
Green Building
Green building (also known as green construction, sustainable building, or eco-friendly building) refers to both a structure and the application of processes that are environmentally responsible and resource-efficient throughout a building's li ...
program. It shares the distinction of being the largest and best established green building program in the country along with Built Green Colorado in
Denver
Denver ( ) is a List of municipalities in Colorado#Consolidated city and county, consolidated city and county, the List of capitals in the United States, capital and List of municipalities in Colorado, most populous city of the U.S. state of ...
.
Electric vehicle program
Austin Energy’s Plug-In EVerywhere network, powered by
100% renewable energy, expanded to 186 public charging stations to help drive a two-year, 300% Austin EV growth rate. Austin Energy led a 10-county, regional effort to develop a community plan that supports the adoption of EVs and successfully deployed the first-of-its-kind EV home charging
Demand Response
Demand response is a change in the power consumption of an electric utility customer to better match the demand for power with the supply. Until the 21st century decrease in the cost of pumped storage and batteries, electric energy could not b ...
program.
Criticism
Austin energy has been criticized for increasing energy prices to fund renewable energy projects and for the 2011 rolling blackouts. It has also been criticized for its handling of the
Texas freeze in early 2021. Critics have called Austin Energy a "monopoly", since Austin didn't follow suit in the deregulation that approximately 1/3rd of Texas cities have been part of.
Austin Energy received significant criticism, including calls for its executive team to resign, during an
ice storm that occurred on February 1, 2023 for failing to prepare for adverse weather, poorly communicating with customers, and not being able to restore power to customers within a reasonable time frame.
References
External links
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Companies based in Austin, Texas
Municipal electric utilities of the United States