Item 1- RMC Austin Energy's Resource, Generation, and Climate Protection Plan Plan Recommendations — original pdf

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RMC Gen Plan Recommendations 1. Consider Leasing Combustion Turbines – AE is concerned that it cannot economically operate without some level of new combustion turbines in the service territory. AE has shown that lack of local generation has raised the cost of imported power because of transmission line constraints. Environmentalists are concerned about carbon emissions and air pollution. Some have also criticized new turbines as a potential stranded investment, where machinery mortgaged over 30 years may not be needed if cleaner technology takes its place. RMC should recommend AE consider the option of leasing instead of owning Combustion Turbines until new transmission lines are built. 2. Require Heat Pump Water Heaters in Building Energy Code By October 1, 2025 – Austin Energy has ignored requiring heat pump water heaters for all-electric homes as a performance option in the energy building code. RMC has passed a resolution asking this to be considered. Rather than delay the current energy code amendments from being passed by Council, RMC should recommend that a new (smaller) process be created for this specific item. There are large savings to be had from this measure, making it worth the effort. 3. Passive House Initiative Beginning October 1, 2025 – A resolution RMC passed last March asking for a pilot program for passive affordable housing has yet to be acted on. We are asking for a date certain for this program to begin. 4. Battery/Virtual Power Plant Program Beginning on October 1, 2025 – Austin Energy has at least 10 MW of Residential energy storage batteries, but does not coordinate their use to lower summer and winter peak demand. AE should have a pilot program in place by October 1 to make use of this and other DSM technologies as a Virtual Power Plant. 5. Reinforce Demand-Side Resources Goals (from Electric Utility Commission and AE) Percent Renewable Energy Goal: 73% renewable energy as a percentage of load by 2030. This goal will include both local and non-local renewable resources. Solar Goal: Austin Energy will plan to reach at least 205 MWs by 2027, and at least 431 MW of installed local solar capacity by 2035 — including 160 MW of existing capacity. Efficiency/Demand Response Goals: An economically achievable goal of at least 360 MW of peak efficiency savings and 269 MW of demand response peak savings by 2035. Thermal Storage Goal: At least 40 MW of local thermal storage by 2030 and at least 50 MWs of local thermal storage by 2035. At least one thermal storage installation should be targeted at a grocery store or food processing plant with substantial chilling requirements. 6. Remove Nuclear Language in Generation Plan – AE's generation plan recommends that nuclear power be considered as a future low-carbon energy source. Given the sordid state of the U.S. nuclear industry (high costs, overruns, waste problems, possibility of accidents and sabotage, lack of new practical improvements), "considering" nuclear power is symbolic at this time. Still, the huge cost overruns experienced by AE with the South Texas Nuclear Project, lack of substantial domestic uranium supplies, and the fading hopes of new technologies such as modular nuclear reactors, elevates false hope and expectations. RMC should ask this language to be removed from the generation plan. 7. Revise GreenChoice Program to Fund Dispatchable Renewable Energy Development (Including Energy Storage) – A resolution RMC passed last May asked that GreenChoice funding that was formerly spent on wind power be diverted to the more relevant challenge of renewable energy dispatchability. Since AE gets over 50% of its energy from solar and wind, and this percentage is expected to grow further without GreenChoice funding, this repurposing will assist in the investment of dispatchable energy technologies such as geothermal and batteries. RMC should ask for this policy to be placed in the new generation plan.