(Slow day, but something for discussion. - promoted by Karl-Thomas Musselman)
Concerning prices and Austin's electricity future -- the Pace Reports have made their recommendations without regard for alarming financial risks related to keeping the coal plant burning. Austin's coal plant is a bad investment; vulnerable to expensive clean air regulation, a volatile fuel market, and more.
Yes, Austin's coal plant has been a great fit for providing electricity when we need it, year-round, for about 30 years. But today, our power plant is clunker:
1. Antique. In 2007, Austin's coal plant ranked #7 most polluting industrial complex in Texas, out of 2,045 surveyed. (1)
2. Vulnerable. As federal climate legislation becomes a factor, with carbon caps and the like, coal's costs "will likely double" according to Austin Energy's own statements. (2)
3. Volatile fuel market. Purchasing coal to burn in the coal plant costs money. Last year Austin Energy's coal fuel expenses went up 73% from the previous year. (5)
4. Rising operations costs. Austin's coal expenditures tripled in 10 years to $180 million in 2008. (6) Even the Pace Report clearly show Austin's coal costing $1 more per MegaWatt than Austin's renewables portfolio, by 2020.
Austin is about leadership.
Council should move immediately to refocusing Austin Energy's generation plan. The Pace Reports, thus far, have left out adequate analysis of our coal plant's financial risks. Austin's business leaders, City planners, advocates for the poor, and environmental activists need to look deeply at the financial risks associated with keeping this coal plant.
(Source Notes cited in full text version.)
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