Information about Austin Energy Plan

TALKING POINTS:

Austin Energy’s “Resource Generation and CO2 Plan” is an effort to reduce the city’s carbon footprint by 35 percent by implementing more renewable energy resources over the next 10 years.

According to Austin Energy, if implemented, this plan to reduce emissions will cause utility bills to rise. (see Austin Energy Worksheet)

Austin residents face three additional cost increases unrelated to the “Resource Generation and CO2 Plan”: Austin Energy reports that utility costs will drastically increase regardless of whether plan is or is not adopted.

Reasonable assumptions place these increases at 50 percent in the next five years, and even more in 10 years. (see Austin Energy Worksheet)

New transmission lines to bring wind and renewable energy to different parts of the state are under construction. The cost is projected to be $5 to $8 billion. Austin Energy reports that it must pay its share of these “green” transmission lines ($5 million/year in the next year and nine times as much, ~$45 million/year by 2014).
Austin Energy reports that it will seek an increase in the Base Rate in 2012.
Austin Energy reports that there will be increases in fuel costs that customers must pay due to the solar and biomass generation contracts it recently signed, along with anticipated increases in natural gas (all of which will increase by ~11.5 percent in the next three years).

The Diocese of Austin favors green energy and efforts to protect the environment. We recognize that human dignity is not upheld if there is not breathable air or drinkable water. At the same time, we cannot forget our obligation to the poor and most vulnerable in society; especially if our move toward cleaner energy raises utility costs.

The Diocese of Austin asks Austin Energy to take into account the needs of the poor and the burden that the increased costs will place on all citizens of Austin. The Diocese asks for full disclosure and discussion of the following:

The bottom line, cost impact to every Austin Energy rate payer and classification, so that we can properly assess the likely resulting demand for assistance and needs of those who cannot afford increases in utility costs.
The determination of whether coal-fired plants in Texas will reduce power production from current levels. Conflicting information has been communicated whether coal fired plants will reduce production or will be sold to permit others to continue to operate the plant at full capacity.
A plan to address: (i) delinquency rates, which are expected to increase; and (ii) the increase in demand for assistance from those who will not be able to pay utility bills.

Currently, requests for utility assistance are one of the top reasons people call 2-1-1, Catholic Charities, St. Vincent de Paul Societies, and other non-profit organizations who provide direct service to those in need; which is clear evidence that the needs of the poor are not currently being met.

If the protection of the environment involves costs, they should be justly distributed, taking due account of the different levels of development of various countries and the need for solidarity with future generations.

-Pope Benedict XVI, World Day of Peace Message, December 2007