Energy in the News: Austin Buys Biomass Plant

Austin Energy: Safeguards in place after paying $460M for plant that lost value over the years

KXAN, April 23, 2019

Austin Energy is paying hundreds of millions of dollars to get out of a $2 billion energy contract it entered into back in 2012.  City leaders say they are saving customers money.  But critics say it was a bad deal in the first place.

The City now owns this wood-burning plant in Nacogdoches rather than leasing energy from it like it did before.

Environmental activist Paul Robbins tells me the purchase is the end of a more than $2 billion, long-term mistake.

Paul Robbins: I compared benchmark costs of what a biomass plant should have cost compared to what we were being charged.  The cost difference was stark. It made no sense.

 

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