Watson Calls for Shutting Austin’s Portion of the Power Plant in Five Years
In a newsletter last week, Austin Mayor Kirk Watson reiterated his City’s commitment to divesting in the Fayette Power Project (FPP) outside La Grange. Austin Energy, the City’s power utility, owns 50 percent interest in two out of the three coal-fired units at FPP. That represents about 13 percent of Austin Energy’s total generating capacity. The Lower Colorado River Authority (LCRA) operates the plant and owns the remaining portion.
About a decade ago, the Austin City Council began discussion over transitioning its electric portfolio to renewable energy.
In 2020, the City approved a plan to shut down its portion of the plant by 2022, but they were unable to meet that goal. Next month, the Austin City Council will consider Austin Energy’s 2030 Resource, Generation and Climate Protection Plan. Mayor Watson issued a newsletter last Friday saying he won’t support the plan. Instead, he called for a renewed focus on closing Austin Energy’s portion of FPP.
“The Fayette Power Plant is our single biggest contributor to greenhouse gas emissions,” Watson said. “It represents three-quarters of Austin Energy’s emissions and about a quarter of Austin’s overall emissions. The plant is also a huge consumer of our limited water supply.
“I want Austin out of the coal plant that Austin Energy has co-owned with the Lower Colorado River Authority since 1979,” he added. “There’s nothing we can do — nothing that I can do as mayor — that’s more profound or effective in combating climate change than getting us out of that plant. I want us to shut down our portion of the plant by no later than January of 2029.”
It remains unclear how Austin will be able to shut down its portion of the plant. LCRA issued the following statement to the Record this week: “The Fayette Power Project is important to the reliability of the ERCOT market. As a partner in FPP, the city of Austin must meet its contractual obligations related to the plant. We value our years-long partnership and look forward to working with the city of Austin in the future and hearing any proposal the city may bring forward.”
The Record asked LCRA what Mayor Watson’s plans mean for the future of the power plant.
“LCRA intends to continue operating the Fayette Power Project as long as it continues to provide reliable, cost-effective power,” said an LCRA spokesperson.