September 22, 2015 Re: Decision on purchasing up to 600 MW of Solar Energy Dear Mayor and Council, The Coalition for Clean Affordable and Reliable Energy (CCARE) represents small, commercial and industrial businesses, as well as non-profits, school districts and state facilities which in total, employ more than 50,000 Central Texans. Collectively, our members purchase more than 200 million kilowatt hours of Green Choice energy annually. We are nationally and internationally recognized for leadership in environmental stewardship and the leaders in the business community on energy and regulatory issues. CCARE supports prudent investment of renewables in the City of Austin and Austin Energy’s Generation Plan. However, we are very concerned at the speed with which the City Council is proposing to move forward with the purchase of 600 MW of solar; despite objections from its professional staff. A summary of our reasons are below: 1. There has not been an analysis performed to determine the cost to each customer class for the decision to move ahead with 600 MW as called for in the Local Solar Strategic Plan adopted by the Austin Local Solar Advisory Committee. 2. There has not been a study of what the impact will be on the affordability goal. 3. Additionally, the Generation Plan states that AE staff is to compare any procurement of 10MW or more with other available power on the ERCOT market. 4. Has any of this been provided to the City Council/Board of Directors for Austin Energy? 5. The cost of solar will continue to go lower over time. Why the rush to buy 600MW now and not phase it in over several years? The City of Austin will once again be paying a premium that is not necessary. Just like Biomass. Just like the Webberville Solar project. 6. The Navigant study on the Generation Plan hasn’t been completed. Completion of the City Council authorized study would provide the answers to the questions posed in the study, and those above. On September 24th, 2014 at the Austin Energy subcommittee meeting, Austin Energy presented the financial feasibility of replacing Decker Power Plant with 600 MW of Solar. In this presentation, Austin Energy outlined in great detail that the Generation Plan--with direction to staff to replace Decker--would violate the City Council’s own adopted affordability goal. The City’s professional staff was clear; converting the Decker Power plant to solar would cost hundreds of millions dollars to the ratepayers of Austin. CCARE has worked closely with Austin Energy to identify and support additional wind and solar contracts to reach renewable energy goals, because we too value a future that includes renewable energy. But we, like the community, also value affordability and this decision does not uphold affordability and smart-planning for the future of this utility. Affordability isn’t just important for residents—who are also our employees—but it is vital to the city’s economic success that Austin remains competitive and affordable for businesses to successfully plan for retention and expansion. CCARE is respectfully asking the Austin City Council to slow down and not repeat the mistakes of the previous City Council. Sincerely, Roger Wood Chairman CCARE CC: City Manager Marc Ott Assistant City Manager Robert Goode General Manager Larry Weis