April 9, 2001 News Media Release

Austin Energy ready for summer

Austin Energy, the City of Austin’s electric utility, has ample generation and reserves and expects no problem meeting summer 2001 electric demand. In addition, there will be more excess generation in Texas this summer than in any of the previous three.

“With California experiencing blackouts and with electric rates increasing in states surrounding California, we want to assure our customers that Austin is in good shape and will not be impacted,” said Chuck Manning, Austin Energy General Manager.

Austin Energy is adding 80 megawatts (MW) of gas turbine peaking generation that will be ready to operate by this May. In addition, some 86 MW of green power will begin flowing into the Austin Energy system this summer, primarily from wind turbines in West Texas. And last year, Austin Energy made improvements that reclaimed an additional 55 MW of capacity from older gas turbines and the two steam units at the Decker Power Plant in Austin. This approximately 200 MW of additional generation is sufficient to power 50,000 homes.

Austin Energy’s total generation this summer will exceed 2,700 MW. The projected peak for Austin this summer is not expected to be greater than last summer’s peak of approximately 2,350 MW -- and may be less. Utilities that are a part of the ERCOT (Electric Reliability Council of Texas) grid are projecting a collective drop in peak electric demand this summer by about 2%. ERCOT encompasses about 85% of Texas.

“Demand is expected to be less due to more normal summer temperatures and because of a slowdown in the economy, “Manning said. “For instance, we had been preparing for newly announced data centers in Austin requiring a combined 100 MW of power. Today only about 10 MW of that demand is still being planned.”

Weather experts predict 10-13 days of 100 degree or more temperatures this summer in Austin. Last summer there were 42. The summers of 1998, 1999 and 2000 were all record setting for Austin and for most of Texas. Over those three summers Austin set 17 new all-time records for peak electric demand.The peak is that hour during the year when the greatest demand for electricity occurs. Austin’s peak occurs during summer months.

Texas will have more excess generation this summer than in recent years. Last year, more than 5, 300 MW of new generation began operation in Texas. Another 2,200 MW will go online between this June and September. Combined, the new generation is sufficient to power an additional 1.8 million homes.

To help customers use electricity more efficiently, Austin Energy provides the most comprehensive energy efficiency programs in Texas and in most of the nation. AE offers rebates and, through an outside lender, low interest loans to both residential and commercial customers for energy efficiency improvements. Residential Customers making key improvements see summer electric bills drop by as much 40% or even more, depending on the age and condition of the home. To date over 110,000 Austinites have used the programs.

Austin Energy also provides free weatherization services for low-income customers. The program serves about 700 families each year and rental homes are eligible provided the customer has lived in the home for a year or longer.

And, in efforts to directly manage peak demand, Austin Energy is also building voluntary programs whereby customers allow their air conditioners to be briefly cycled off during peak demand periods. For participation in the Power Partner program, as it is called, customers receive a free programmable thermostat to help them manage both natural gas heating and electric cooling. To date more than 8,000 residential and business customers have signed up for the program.

Austin Energy’s renewable energy program, GreenChoice^SM, is the most affordable renewable energy program in the nation. Subscribers using the system monthly average of 1,000 kilowatt-hours (kWh) of electricity pay only $1.70 more per month. And GreenChoice’s green power charge stays fixed for 10 years, replacing the standard fuel charge -- which can increase with natural gas swings or other fuel cost increases.

Customers interested in Austin Energy programs can visit www.austinenergy.com or call 499-7827 for information packets.

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For more information, contact Ed Clark, Public Information.
Phone: (512) 322-6514
Pager: (512) 802-2000