Item 3- Revised Recommendation regarding an audit of the Austin Energy District Energy and Cooling System — original pdf

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Resource Management Commission Resolution on Austin Energy District Energy and Cooling System WHEREAS, the City of Austin established its first District Energy and Cooling system plant in 2005; and WHEREAS, this system has now expanded to six locations around Austin, and is forecast to save 30 MW of summer peak demand by 2027 while providing air conditioning and refrigeration at a savings to at least 73 commercial customers; and WHEREAS, this system would have not been built without Austin Energy's support; and WHEREAS, the peak load reduction from the District Energy and Cooling System lowers Austin Energy’s wholesale electricity purchase costs for all Austin Energy customers; and WHEREAS, expansion of the district chilling system is an important strategy to save more energy and reduce carbon emissions as the new Austin Energy generation plan is implemented; and WHEREAS, Austin Energy has proposed sale of this system in the summer of 2024 because of the claim that it was not financially viable, which caused concern among its skilled workforce about the security of their jobs, which in turn puts the system at risk if these skilled employees take other jobs; and WHEREAS, Austin Energy has not released detailed information and data relevant to the financial viability of the district chilling system and the timeline by which a sale or other alternatives for the system might proceed; THEN BE IT RESOLVED that the Resource Management Commission: 1) ask the City Council to conduct an audit of Austin Energy's District Energy and Cooling system to determine when it will become profitable, and necessary steps that the City should take to ensure its financial viability; 2) ask Austin Energy to develop and share its plans, timing and rationale for the future expansion or sale of the District Energy and Cooling system; 3) request a public status report on the plans be made available in 4 months.