Austin Energy reports $119M over‑collection and reviews 12 All‑Resource RFP proposals, none for local utility‑scale solar

Acting Chief Financial Officer John Davis told the Utility Oversight Committee that Austin Energy’s operating income for the quarter ended Dec. 31, 2025, was approximately $6 million below budget, driven largely by lower transmission revenues.

Davis reported that the power supply adjustment was about $119,000,000 over‑collected as of Dec. 31, 2025; that overcollection contributes roughly 32 days of the utility’s reported 194 days cash on hand. He said Standard & Poor’s affirmed Austin Energy’s AA‑ bond rating in October 2025 and that staff expect to continue gradual rate adjustments and efficiency work to restore longer‑term financial targets. Davis said the utility anticipates ending the year near the approved budget deficit of $43,500,000.

Deputy General Manager and Chief Operating Officer Lisa Martin summarized the All‑Resource RFP review: staff received 12 proposals located inside the local load zone — seven battery storage projects and five proposals for various natural‑gas technologies — and no proposals for local utility‑scale solar. Martin said the evaluation team is reviewing bids and will move into contract pre‑positioning for viable projects, with some items expected to come to council in April and May. She added that staff plan community engagement in April on potential siting for local utility‑scale resources.

Councilmembers asked how proposals outside the load zone (e.g., West Texas or coastal wind) and new federal tax incentives fit the utility’s resource strategy and how any natural‑gas proposals would respect the generation plan’s carbon‑intensity guardrails. Martin said past wind RFPs and out‑of‑zone PPAs are part of the procurement strategy and that staff will discuss guardrails alongside any gas proposals.

The committee also discussed operational impacts: Martin noted that renewable percentages were reduced this quarter by curtailments tied to transmission congestion and that two Decker peaker units were out of service much of the quarter. She said staff hope to return Decker units to service before summer and that RFP‑related contract work will proceed in parallel with transmission alignment efforts.

Staff will return with further evaluation results, proposed contract terms for viable projects and details on how proposals align with the generation plan’s emissions guardrails.