Austin’s Commission Resolution Raises Concerns Over Sale of District Cooling System

Austin’s Commission Resolution Seeks to Slow Down Sale of District Chilling System

On Tuesday, the Resource Management Commission will likely request that the city council delay the assessment of Austin Energy’s district cooling system’s potential sale. This information comes from Commissioner Paul Robbins, who is widely recognized as an environmentalist and for whom the downtown district cooling system bears its name. The system aids air conditioners in cooling large buildings, benefiting thousands of downtown Austin individuals. Notably, the discussion surrounding the proposal to sell did not involve community stakeholders before it was placed on the city council’s docket.

The Potential Effects of Selling

The commission’s resolution points out that selling this system might negatively influence peak demand and energy efficiency, affecting over 60 substantial structures. It was initially developed by Austin Energy to accommodate customer needs and create diverse revenue streams in a time of potential deregulation threats to its customer base. If Austin Energy were to sell now, it would forfeit the revenue from current chilling system customers, thereby losing its capacity to expand its customer base in the future. The resolution warns that such a sale could also potentially increase rates for these customers.

Public Perception and Outcry

Robbins has come forward to say that both the commission members and the general public felt “blindsided” by the sudden appearance of the proposal on the Council’s agenda. The announcement sparked widespread concern amongst the public, with Robbins labeling this strategy as “bad form” on part of the utility.

In response to the current scenario, former Council Member Kathie Tovo, presently a mayoral candidate, voiced concerns about Austin Energy possibly selling a lucrative part of the utility. Tovo strongly encouraged city ratepayers to protest and insisted that the city must retain ownership of vital environmental assets.

Potential for a Citywide Vote

The proposal’s mention in the City Charter raises questions about whether the sale’s approval requires a citywide vote. The Charter prohibits the council from selling, conveying, or leasing any substantial part of the city-owned public utility facilities. This limitation raises the question of whether the chilling system constitutes a substantial portion of Austin Energy’s facilities, a definition Council members will have to settle on unanimously.

Strong Opposition from Mayoral Candidates and Union

Two more mayoral candidates, Doug Greco and Carmen Llanes Pulido, echoed sentiments of concern regarding the potential sale. The city, county, and state employees union, AFSCME Local 1624, issued a statement on Thursday opposing the sale, calling it an apparent attempt at privatization. Pedro Villalobos, the president of AFSCME Local 1624, criticized the potential sale to J.P. Morgan, stating “Why sell a profitable, efficient and environmentally friendly system just to line the pockets of J.P. Morgan?”,

While Austin grapples with the implications of a potential sale, one thing remains clear – the future of Austin’s district cooling system hangs in balance, and the resolution of this matter is a matter of significant interest for the city and its citizens.