Item 1: Draft Austin Energy’s Resource, Generation, and Climate Protection Plan Part 4 of 4 — original pdf

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Broadening the Picture with Ascend Analytics’ Portfolios Along with Austin Energy’s model and analysis, we also contracted with Ascend Analytics to get additional portfolios and broader insights. They use a different type of model, which gives different outputs. With our approach, the resource mixes are human designed while in Ascend’s approach, those mixes are computer designed. For example, we can tell Ascend’s model that we want a portfolio that achieves carbon-free by 2035, hits a 65% renewable energy target by 2027 and has sufficient local resources to minimize the risk of load zone price separation. The model uses this information to forecast a lowest-cost solution within those parameters. We are then able to compare the outputs from Ascend’s modeling to our results and use the combined information to find better resource mixes. Another advantage with Ascend is the ability to generate a range of expected outcomes instead of a single data point. They do this by running their portfolios through 100 future situations to generate a range of outcomes. This range includes the average outcome as well as the 5th and 95th percentiles to represent the outer edge possibilities. This is helpful in understanding uncertainty and the significance of variability in events. Refining the Information and Portfolios With all the scenarios and sensitivities in the modeling analysis, we are able to study dozens of approaches to meeting the community’s energy needs. Based on that analysis, Austin Energy worked with the EUC to fine-tune four additional portfolios. We wanted to maximize strengths and resolve issues. For example, we talked with the EUC about the number we used for transmission import capacity. As a baseline in the model, we included ERCOT’s information on future transmission projects and upgrades. This includes all known projects for Austin Energy as well as every other transmission provider in ERCOT. This information, though, only goes out five years. We know we’ll still add in projects and upgrades beyond that window. In discussion with the EUC, we decided to add more import capacity as we enhance the modeling to account for that continued work. These are the refined portfolios: Portfolio Description Porfolio #14 Porfolio #15 Porfolio #16 This portfolio maxed out DSM projections and then added in just enough local storage and natural gas peaker units to reach near-term local reliability. It included increased transmission capacity. This portfolio was similar to #12 except with increased transmission capacity, DSM and local storage. The levels for both DSM and local storage were significantly higher than what is considered feasible based on market analysis and research. This portfolio was similar to #15 but studied a different mix of DSM and local storage while keeping local natural gas generation through 2035. The levels for both DSM and local storage were significantly higher than what is considered feasible based on market analysis and research. Porfolio #17 This matched #12 except it kept local natural gas generation through 2035. The levels for both DSM and local storage were significantly higher than what is considered feasible based on market analysis and research. Using a broad set of portfolios gave us and our community partners a better understanding of how all the pieces work together — and how we might best reach our values. 46 | Austin Energy Resource, Generation and Climate Protection Plan to 2035 Return to Table of Contents Austin Energy Resource, Generation and Climate Protection Plan to 2035 | 47 ASSESSING PERFORMANCE — KEY INSIGHTS AND TRADE-OFFS Modeling shows us is how these different resources and portfolios potentially meet our collective values. This is how we assess where there must be trade-offs. Think of this like the results at the end of the board game. For resource planning, though, modeling is not about winning. It’s about gathering the information that will help us find the strategies that best shield our community from risks while supporting the values they expressed. Key Insights and Tradeoffs With all the approaches we analyzed, we worked with Ascend Analytics and the EUC and found these key insights and trade-offs from the information: • Austin Energy has immediate needs and challenges we must address to provide clean, affordable and reliable energy. Doing nothing is not an option, and investment is needed. • The maximum levels of DSM (energy efficiency, demand response and local solar) from the DNV study are not enough to reduce reliability risk. Additional local solutions are necessary. • Modeling additional transmission import capacity — beyond what is currently accounted for — significantly reduces reliability risks and net costs. These projects have extensive regulatory requirements and take more time to complete than other resources. • Retaining existing local natural gas generation from Sand Hill and Decker significantly decreases reliability and liquidity risks especially in the later years of the planning timeframe. • High levels of new DSM and battery storage only manage reliability and liquidity risks when we keep existing local natural gas generation and when those new resources are brought on at a pace beyond what the DNV study found feasible. • Utility-scale battery storage provides the lowest emissions for dispatchable resources, but it comes at the highest cost. Battery storage supports reliability but only for events that last no longer than a few hours. • Larger natural gas combined cycle units are a low-cost, dispatchable resource that support reliability but produce more emissions than other generation resources we studied because they run more often. They support reliability and affordability especially for longer duration events. • Natural gas peaker units are a lower-cost dispatchable resource and they produce fewer emissions than combined cycle units because they only run when absolutely needed. Peakers support reliability and affordability especially for longer duration events. • DSM, transmission, local solar, battery storage and additional natural gas peaker units manage reliability and liquidity risks while maintaining low overall use of the peakers. All peakers ran less than 12% of the time. These insights lead us to a “tools in the toolkit” approach that provides the most flexibility in meeting the community’s values and priorities while also addressing multiple current- day risks and future uncertainties. Now we can lay out the strategies to reach our clean energy future. 48 | Austin Energy Resource, Generation and Climate Protection Plan to 2035 Return to Table of Contents I N O T A R E N E G , E C R U O S E R Y G R E N E N T S U A I I 5 3 0 2 O T N A L P N O T C E T O R P E T A M L C D N A I 48 | Austin Energy Resource, Generation and Climate Protection Plan to 2035 Return to Table of Contents Austin Energy Resource, Generation and Climate Protection Plan to 2035 | 49 POWERING AUSTIN’S CLEAN ENERGY FUTURE AUSTIN ENERGY’S RESOURCE, GENERATION AND CLIMATE PROTECTION PLAN TO 2035 Austin Energy faces a complicated and evolving energy landscape. Those changes increase our immediate risks, but they also open up opportunities. With the community’s values and objectives as the guide, the 2035 Plan gives us a flexible path to a reliable, affordable and environmentally sustainable future that benefits everyone in our community. To reach this future, the 2035 Plan: • Prioritizes customer energy solutions first in resource planning, reducing the need for additional generation and transmission in support of reliability. • Explores local solutions to ensure there are enough power generation resources in our service area to manage reliability and affordability. • Solidifies our commitment to environmental leadership, paving the way for decarbonization and an equitable, clean energy transition. • Outlines a culture of innovation so we can stay at the forefront of technology advancements that support our community. This outlines what we want to do to make that future a reality. The key actions detail how we will do it. KEY ACTIONS Prioritize Customer Energy Solutions • Lead with Energy Efficiency Austin Energy will lead with energy efficiency as the first priority to reduce energy needs during peak times. With more than 40 years of industry-leading experience, we will continue to expand award- winning programs and promote energy efficiency that lowers customer energy use, sustains customer comfort and reduces electric bills. Austin Energy plans to save 975 MW by 2027, moving a previous goal forward by three years. In 2027, we will shift to tracking avoided greenhouse gas for our energy efficiency programs. Greenhouse gas avoidance is a more holistic measure, allowing us to broaden our reach and capture the value of beneficial electrification.   • Lead with Demand Response An equally important priority is leveraging demand response programs to shift electricity use away from high-demand times. With decades of experience creating and promoting innovative demand response programs, Austin Energy will expand our offerings, planning to reach 270 MW of achieved summer reductions by 2035. This includes customer-sited batteries and managed electric vehicle charging. Looking ahead, Austin Energy will analyze our winter energy use and develop a demand response goal for that season as well. • Move from Megawatt Reduction to Greenhouse Gas Avoidance For decades, earlier than much of the U.S., Austin Energy developed and managed cost-effective energy efficiency and high-efficiency building code programs. Because of that early adoption and success, there is no more “low-hanging fruit” in this area. Progress toward megawatt reduction goals is harder with less return for each effort. To open up new opportunities and measures, Austin Energy will transition to tracking avoided greenhouse gases as the primary goal for many of our DSM programs. This change will support 50 | Austin Energy Resource, Generation and Climate Protection Plan to 2035 Return to Table of Contents our decarbonization and beneficial electrification progress. For example, shifting from natural gas heating in a home to electric heat pumps would increase electricity use. If we track avoided greenhouse gases instead, we will be able to measure how that same shift reduces pollution and supports the clean energy transition. • Promote Beneficial Electrification Beneficial electrification replaces fossil fuel use with electricity to reduce greenhouse gas emissions and energy costs overall. Focusing on electrification could increase peak electric use, customer bills and distribution system costs. Beneficial electrification means increasing electric energy consumption while minimizing the impacts on the grid and environment. An example would be replacing a gas water heater with a demand response-enabled heat pump water heater. The ability to control the electricity use is what minimizes the power impact and promotes environmental sustainability. Austin Energy will expand our offerings that support beneficial electrification for residential and commercial customers. We will track performance and establish a full suite of beneficial electrification incentives by 2027. • Incentivize Customer-Sited Batteries Recognizing the community’s desires for increased resiliency, Austin Energy will enhance its demand response program by including customer-sited batteries. Austin Energy will develop and provide incentives for battery storage to maximize benefits to customers and the electric grid. • Promote Innovative Local Solar Solutions Leveraging our 20 years of industry-leading and innovative solar solutions, Austin Energy is working to expand clean energy access for all customers through programs like Solar for All and Standard Solar Offer. Producing solar locally, where it is used, reduces congestion on the transmission grid and lowers prices. To better capture this benefit, the 2035 Plan defines local solar as any solar located within Austin Energy’s load zone. This helps us prioritize resources that will reduce local reliability risk and load zone price separation. Austin Energy will plan to reach 405 MW of installed local solar capacity by 2035 — including 160 MW of existing capacity. 50 | Austin Energy Resource, Generation and Climate Protection Plan to 2035 Return to Table of Contents Austin Energy Resource, Generation and Climate Protection Plan to 2035 | 51 • Improve Customer Interconnection Experience For Austin Energy to truly prioritize customer energy solutions, we must have a streamlined process for customers who wish to install customer-sited solutions like batteries, rooftop solar and personal generators. Austin Energy will assess and put quality measures in place to improve the customer experience and reduce barriers to installation and interconnection. This includes continued partnerships with other City departments to develop broad solutions. Develop Local Solutions • Prioritize Customer Energy Solutions A holistic approach to addressing the need for local solutions begins with reducing or managing demand. As a public power utility, we are uniquely positioned to manage all sides of the supply and demand equation. Austin Energy exists to serve the community, and part of that service is making the most of DSM opportunities and benefits. • Increase Transmission Import Capacity In addition to local resources, Austin Energy also brings in power from outside our service area to serve customers. This strategy has made us an environmental and renewable energy leader because it allowed us to invest in large amounts of clean energy across the state. There are constraints, though, on how much power we can bring in, creating reliability and cost risks to our customers. Austin Energy doesn’t have full control over transmission projects, but we will promote local transmission work that increases the amount of power we can bring into our area. • Promote Local Utility-Scale Solar Austin Energy will search for new opportunities to expand local utility-scale solar as we continue to invest in renewable resources and support our local power supply. This resource can help us meet the growing energy demand we have in our area with clean energy and lower market costs from load zone price separation. A current example is the Webberville Solar Project, a 30 MW installation within our load zone. While we consider local utility-scale solar options, siting considerations may be a significant challenge. • Include Local Utility-Scale Batteries With our experience from Austin SHINES, Austin Energy will incorporate utility-scale batteries to provide another type of local, dispatchable resource. Batteries offer flexibility and are well-suited to solve short duration events — two to four hours. Today, battery prices are higher than other local solutions, but as with most evolving technology, battery prices are expected to decrease over time. Within the bounds of affordability, Austin Energy will build or contract for local utility-scale batteries to supply energy during solar ramp down, provide ancillary services, supplement existing local generation and help fill the gaps from weather-dependent power production. 52 | Austin Energy Resource, Generation and Climate Protection Plan to 2035 Return to Table of Contents • Avoid Retiring Local Generation Prematurely Following through on a commitment reaffirmed in the 2030 Plan, Austin Energy successfully retired two older, gas-powered steam generators at Decker. Decker Steam Unit 1 (300 MW) retired in September 2020, and Decker Steam Unit 2 (425 MW) retired in March 2022, reducing local energy supply by 725 MW. In summer 2022, Austin’s service area saw load-zone price separation significantly increase, leading to congestion costs exceeding $135 million for the year. In 2023, congestion costs exceeded $150 million. The combination of retiring a significant amount of local generation without local replacements, market changes in the aftermath of Winter Storm Uri and transmission constraints across Texas and into the Austin Energy service area, creates significant reliability and affordability risks for the Austin community. To avoid increasing the risks, Austin Energy will not prematurely retire existing generation capacity at Sand Hill and Decker while seeking opportunities to increase efficiencies, reduce emissions and reduce costs for customers. Decker has four peakers, and Sand Hill has six peakers and a combined cycle unit. As the energy landscape evolves, Austin Energy will regularly assess our generation needs and potential retirements where possible. • Pursue Additional, More Efficient Natural Gas Peaker Units The resource planning analysis shows the local solutions listed above are not enough to solve the local reliability risks and load zone price separation we currently experience, especially for events lasting longer than a few hours. Peakers are smaller, modular power units that only run to meet peak electricity needs. This type of generation has become more and more efficient over time. When compared to our peakers at Decker — installed in the 1980s — a newer peaking unit is approximately twice as efficient. That means it would use about half as much natural gas to produce the same the same amount of power, thus reducing emissions by about half as much as well. Austin Energy should build or contract for more efficient local peaker units. These units will significantly reduce load zone price separation risk and provide voltage support for reliability. We would use these units only when needed, and we will run our most efficient (least emissions) units first. The older, existing peakers will be used as a last resort. Having peaker units acts like an insurance policy for events that would last beyond battery durations and aligns with the community’s objective of prioritizing reliability and resiliency. Once these additional units are placed in service, Austin Energy will apply guardrails to the operations of all our peaker units to reduce the negative effects on the environment. More on this below. • Develop Emissions Guardrails for All Peakers Because natural gas peaker units produce emissions, Austin Energy will apply guardrails to our units to reduce our environmental impact. Of all the resource types in the ERCOT market, natural gas peaking units are typically the last to be used to meet power needs. Their main purpose is to fill in the gaps for unexpected circumstances like days with extremely high demand and when the weather reduces available generation on the ERCOT system. Using peakers in this way means they don’t run very often, typically between 6% to 14% of the time. To limit carbon emissions Austin Energy only uses peaker units to meet peak energy needs, and we run the most efficient (lower emissions) units first. Once additional peaker units are placed in service, we will develop emissions limits for all peakers that will result in the strictest run time restrictions on the highest emitting units. With those limits established, Austin Energy will review and propose updated emissions limits in response to changing conditions, with a goal of strengthening them as cleaner resources become available to meet local needs. • Incorporate Equity into Siting Considerations When considering site locations for any future local generation solutions, Austin Energy will explore the feasibility of sites across our service territory. Site requirements vary for different resource types and include energy equity, land access, permitting restrictions and access to infrastructure — including 52 | Austin Energy Resource, Generation and Climate Protection Plan to 2035 Return to Table of Contents Austin Energy Resource, Generation and Climate Protection Plan to 2035 | 53 transmission, water and fuel. Austin Energy is committed to applying the energy equity framework used in developing the 2035 Plan, which includes procedural, recognition and distributional equity. Site selection will aim to avoid historically impacted communities, and any future local solutions will involve collaboration with our community. • Protect Local Air Quality Austin Energy works to minimize emissions from our local generating units and improve local air quality. For example, our existing units at Decker and Sand Hill have NOx emissions controls — with the Sand Hill peakers using Selective Catalytic Reduction (SCR) technology to reduce those emissions by 80% to 95%. Austin Energy will use SCR technology on any new peakers, and we will continue to assess emerging pollution control technologies to further reduce local emissions. In addition, we will look for innovative partnerships and opportunities to support our progress in this area. As part of these efforts, we will seek to leverage state and federal grant funding. • Focus Customer Programs to Support Neighborhoods  An equitable clean energy transition requires prioritizing strategies that deliver real benefits to impacted communities. To support this transition and reduce negative effects from Austin Energy’s generating units, we will focus the enrollment and marketing efforts of innovative customer programs to improve communities that host these facilities. Further, Austin Energy will work with impacted communities to find creative ways to implement their energy priorities. For example, in District 1, the community is working to implement the vision of the Northeast Planning District. As we develop local generation resources, Austin Energy will leverage local and regional partnerships to deliver innovative and sustainable solutions to the affected community. • Maintain Black Start Utility Status Concerns about black start in ERCOT have grown since the system came minutes away from a complete blackout during Winter Storm Uri in 2021. To help bring the grid back online in a blackout emergency, Austin needs black start resources. Black start is the process for restoring the electric grid after a full or partial blackout. It is a worst-case event — low probability but very high impact — that grid operators must plan for. There are strict requirements to be certified as a black start resource in ERCOT, and only certain units can meet these standards. Black start resources must be able to start without an external power source, and they must always be available and ready to start. Natural gas peaking units can meet these requirements. Batteries, on the other hand, have the potential to be partially or fully discharged at any time, preventing them from meeting ERCOT’s availability requirements. Austin Energy will maintain black start capabilities in its generation portfolio to be part of the solution in a statewide grid blackout emergency. Continue our Commitment to Decarbonization • Carbon Free as a Percentage of Load Austin Energy reaffirms the 2030 Plan’s goal of 100% carbon-free generation as a percentage of load by 2035 while recognizing the need for technology evolution as an enabling factor. The intent is to have enough carbon-free energy generated to cover all of our customer load in 2035 and beyond. If barriers stand in our way, we will take the approach of “do your best and clean up the rest,” mitigating or offsetting any remaining carbon emissions starting in 2035. As a milestone along the way and recognizing that most carbon-free sources are renewable, Austin Energy sets a goal of 70% renewable energy as a percentage of load by 2030. This gives us the flexibility to convert the remaining 30% to carbon free by 2035 using a mix of nuclear (currently about 22%), renewable or other carbon-free sources that best meet community needs. Austin Energy will promote reliability and affordability in alignment with community values and priorities as we advance these environmental sustainability goals. We will be transparent and communicate proactively on developments in this area. 54 | Austin Energy Resource, Generation and Climate Protection Plan to 2035 Return to Table of Contents • Exit Coal and Reaffirm REACH Austin Energy reaffirms our commitment to cease operation of our portion of the Fayette Power Project coal plant as soon as feasible. Austin Energy will continue using REACH to incorporate the cost of carbon into the coal plant’s dispatch price. REACH stands for Reduce Emissions Affordably for Climate Health, and it refers to the market-based approach adopted in the 2030 Plan to accelerate the reduction of carbon emissions from FPP in the most economic manner available. REACH reduces generation output during low- demand periods but keeps the resource available for high-demand periods, when the grid needs it most. The 2035 Plan positions Austin Energy to be ready for the successful ceasing of coal plant operations. By adding local, dispatchable generation, we can protect customers from the energy shortfall and additional energy market risks that come from no longer having FPP in Austin Energy’s portfolio. • Wind and Solar Outside of Austin Energy’s Service Area Recognizing the role of remote wind and solar in achieving Austin Energy’s goal of 100% carbon-free by 2035 as a percentage of load, we will continue to look to these types of projects to supplement our local portfolio. We will monitor the impact of oversupply and transmission congestion in the market and seek solutions that benefit our customers within the bounds of affordability. Austin Energy will use its annual Request for Proposal or equivalent process to seek the best available renewable energy and energy storage opportunities to add to Austin’s generation portfolio and to assess market trends for future planning. With an eye toward flexibility, the 2035 Plan does not designate the components of Austin Energy’s renewable energy portfolio. Austin Energy will plan for least net-cost and least-risk acquisition of renewable resources and energy storage as available in the ERCOT market to meet 2035 Plan goals. • Geothermal, Nuclear and Other Carbon-Free Technologies As described below, Austin Energy will seek to add more carbon-free generation options to our mix through emerging and evolving technologies such as geothermal, nuclear and other carbon-free opportunities. Further our Culture of Innovation • Research and Development Partnerships Austin Energy has long been a leader in innovative programs and solutions that benefit our customers. We reaffirm our commitment to fostering research and development partnerships to explore emerging technologies. In doing so, we position Austin Energy to continue to be a leader in the evolving energy landscape. • Grant and Other Funding Opportunities Austin Energy will continue to actively pursue opportunities for federal, state and private funding in support of City of Austin goals. • Solar for All Solar for All is an example of an emerging partnership between City of Austin and 10 coalition partners across Texas that leverages federal funding to promote equitable access to clean energy solutions. Courtesy of an Environmental Protection Agency grant award, qualifying customers participate at no cost to install solar and batteries for Austin Energy’s Community Solar program. In return for serving as a hosting location for these resources, low-to-moderate income participants receive 20% bill savings. Host customers also benefit from increased resiliency and gain ownership of the solar and battery after 15 years. We anticipate serving around 2,500 residential customers and 25 multifamily, nonprofit and community service faclities through this program. • Solar Standard Offer Solar Standard Offer is another flagship program demonstrating Austin Energy’s culture of innovation. Targeting rooftops that otherwise might not be incentivized to host local solar, this program provides a new rate so it’s easier for renewable developers to partner with commercial customers to lease their rooftop space and host solar for our Community Solar program. Austin Energy receives the power, and 54 | Austin Energy Resource, Generation and Climate Protection Plan to 2035 Return to Table of Contents Austin Energy Resource, Generation and Climate Protection Plan to 2035 | 55 in exchange, developers receive compensation and share it with the commercial customers according to an agreement that works for both parties. Austin Energy is initiating this innovative program with commercial customers and plans to add residential offerings once we have enough experience with the program. • Pilot Geothermal Generation Austin Energy seeks to support the development of geothermal electricity generation in Texas and gain a better understanding of the technology’s viability as we look to add more carbon-free power to our portfolio. We will begin with a PPA for a 5 MW project in East Texas, a small but manageable size given the maturity of the technology type. The successful development and completion of this project could lead to larger scale installations at a lower cost as it gains economies of scale. • Enhance “Virtual Power Plant” Programs and Set Up a Distributed Energy Resource Management System In support of our demand response goals, Austin Energy will research, develop and implement ways to enhance our “virtual power plant” programs. Virtual power plants refer to a range of connected technologies and programs. For example, Austin Energy’s robust thermostat program and our recently launched EV managed charging program fall under this category. Austin Energy will work to increase community participation in these programs. In addition, we will develop and build new virtual power plant programs, like offering incentives for batteries. This new battery program is targeted to launch in 2025 and is an essential part of meeting the demand response goals outlined above. Adopting a Distributed Energy Resource Management System (DERMS) will help us make more progress on our virtual power plant programs. A DERMS optimizes the use of distributed resources like thermostats, electric vehicle chargers and batteries. Austin Energy is currently working with the Electric Power Research Institute to develop requirements for a DERMS, and then we expect to put out a proposal request. • Support Vehicle-to-X Opportunities Vehicle-to-X (V2X) refers to a variety of technologies that allow electric vehicles (EVs) to play a more active role in the electric system. This could allow EVs to support a wide range of applications such as demand response, grid balancing and outage support. Currently, Austin Energy’s smart and connected EV chargers work as a demand response tool, but they hold the potential to turn EVs into mobile energy storage devices that can provide power to homes or the grid when needed. Austin Energy will work toward V2X by supporting necessary infrastructure, standards placement, regulatory changes and technological integration. • Explore Advanced Nuclear Technologies Austin Energy will monitor the progress of advanced nuclear reactors and engage directly with those who have expertise in this area. Given the evolving technology opportunities as well as funding incentives and grants, the 2035 Plan reestablishes our ability to engage in nuclear technologies if we find the right opportunity. • Emerging Carbon Capture Technologies To reach our carbon-free by 2035 goal, Austin Energy may need to rely on emerging emission control technologies. We will monitor the progress of various carbon capture technologies and applications over the next decade. REPORTING FOR THE 2035 PLAN As Austin Energy moves forward with implementing the 2035 Plan, we will provide a report annually to highlight the progress we’ve made, the changes we’re seeing and the actions needed to continue forward on reliability, affordability and environmental sustainability. 56 | Austin Energy Resource, Generation and Climate Protection Plan to 2035 Return to Table of Contents I N O T A R E N E G , E C R U O S E R Y G R E N E N T S U A I I 5 3 0 2 O T N A L P N O T C E T O R P E T A M L C D N A I 56 | Austin Energy Resource, Generation and Climate Protection Plan to 2035 Return to Table of Contents Austin Energy Resource, Generation and Climate Protection Plan to 2035 | 57 CONCLUSION Energy markets and energy grids have seen rapid changes, leading to increased risks. At the same time, we are experiencing a climate emergency. A responsible approach to generation resource planning does not gamble on uncertainty at our community’s expense. We heard from the community that reliability is their top priority, and it is one of the significant risks Austin Energy faces. The 2035 Plan provides us the ability to add the resources we need to address voltage support, extreme weather and market risks. This way, our community is better protected from local outages and future weather events. By creating a flexible path focused on innovation, the 2035 Plan helps us meet the community’s values and our industry’s changing needs while being as environmentally sustainable as possible, as quickly as possible. Though a 100% carbon-free energy future is not here yet, the 2035 Plan moves Austin Energy and the community closer to that world. The 2035 Plan guides us to a clean energy future that has: ✔ Continued progress to an industry-leading goal of 100% carbon-free energy by 2035. ✔ New and innovative customer energy solutions. ✔ Improved reliability, affordability and environmental sustainability. ✔ An energy equity approach that protects the most vulnerable customers. ✔ Resiliency in the face of extreme weather and associated financial risk. ✔ Flexibility and innovation to tackle current and future challenges. In partnership with our community, this is how we will continue to safely deliver clean, affordable, reliable energy and excellent customer service — now and into the future. 58 | Austin Energy Resource, Generation and Climate Protection Plan to 2035 Return to Table of Contents I N O T A R E N E G , E C R U O S E R Y G R E N E N T S U A I I 5 3 0 2 O T N A L P N O T C E T O R P E T A M L C D N A I 58 | Austin Energy Resource, Generation and Climate Protection Plan to 2035 Return to Table of Contents Austin Energy Resource, Generation and Climate Protection Plan to 2035 | 59 AUSTIN ENERGY RESOURCE, GENERATIONAND CLIMATE PROTECTION PLAN TO 20354815 Mueller Blvd, Austin, TX 78723 | phone: 512-494-9400 | web: austinenergy.com ©2024 Austin Energy. All rights reserved. Austin Energy and the Austin Energy logo and combinations thereof are trademarks of Austin Energy, the electric department of the City of Austin, Texas. Other names and logos are for informational purposes only and may be trademarks of their respective owners. CORP 24 3662 11/2024