April 6, 2006 News Media Release

Council OKs more renewable energy sources, additional power to keep Holly closure
on track

The Austin City Council approved on Thursday, April 6, two requests to purchase new power sources that will enable Austin Energy to double its renewable energy supply and to proceed with plans to retire the Holly Power Plant next year.

One contract involves the purchase of the annual output of electricity for the next 20 years from 225 megawatts (MW) of new wind generators to be built in West Texas. That request is for up to $685 million of spending authority for that purchase. The new wind power will bring Austin Energy’s renewable energy portfolio to 450 MW of capacity, 11% of its total generation demand and well on its way to its goal of 20% renewable energy by 2020. The contract with RES AMERICAN DEVELOPMENT INC., of Austin, requires the contractor to build the wind turbines and have them producing power by December 31, 2007.

A second Council action approved $132 million to purchase 250 MW of conventional electricity annually for three years beginning in 2008. Like the wind energy, the purchased power will be delivered over the statewide electric grid to Austin. The purchased power, combined with the new Sand Hill power plant located just east of Austin-Bergstrom International Airport and opened in 2001, enables Austin Energy to retire the remaining two units at the Holly Power Plant at the end of 2007. The first two Holly units were retired at the end of 2004.

The renewable energy purchase will give Austin Energy one of the largest green power supplies of any utility in Texas. Austin Energy has been ranked #1 in the country four years in a row for the most renewable energy sales by a utility-sponsored green power program—outperforming some 600 other programs nationwide.

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