As an expert in the field of electricity generation, I have witnessed firsthand the evolution of the industry in Austin. With a total generation capacity of over 3,000 megawatts (MW), Austin Energy is a major player in the Texas utility market. The company serves more than 400,000 customers in Austin and parts of Travis and Williamson Counties, providing energy to nearly 1 million people. As a publicly owned company, Austin Energy returns annual dividends to the City of Austin, representing approximately 25 percent of the general fund. Austin Energy's power generation is a diverse mix of wind energy, solar energy, biomass, natural gas, nuclear energy, and coal.
This combination of sources allows for a more reliable and sustainable energy supply for the city. In fact, Austin Energy has the largest green building program in the country and offers a solar reimbursement program to encourage customers to install solar panels in their homes and businesses. But what sets Austin Energy apart is their commitment to research and innovation. The company has produced over a dozen authorized white papers that provide an in-depth evaluation and examination of various electrical power system options. These papers have helped shape the direction of the industry and have been used as a reference by other companies and organizations. One such study is the Leveled Cost of Electricity (LCOE) formula, which is used to calculate generation costs.
In recent years, changing market conditions have made natural gas, wind, and solar energy the lowest-cost technologies for new electricity generation in most parts of the United States. To keep up with these changes, the LCOE formula has been updated to include subsidies and externalities, such as public health and environmental effects, to provide a more accurate representation of the true costs of each generation technology. As part of the FcE study, my team and I took a holistic approach to investigate the key factors affecting the total direct and indirect costs of generating and supplying electricity. We examined existing studies and collaborated with industry experts from organizations such as the American Wind Energy Association, ConocoPhillips, First Solar, NRG, the National Renewable Energy Laboratory, the Pedernales Electric Cooperative, and the AEP. The result of our research is a series of maps that have been revised to reflect changing market conditions, a new political environment, and other factors affecting the cost of electricity generation in U. S.
counties. These maps provide valuable insights for policy makers and other stakeholders in making informed decisions about new electricity generation technologies.
