Tag Archives: Austin City Council

The Big Electric Utility And Climate Change Dilemma – And How To Solve It

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By Bill Oakey, August 1, 2022

Electric Utilities Can’t Make a Profit

It’s simple economics. If homes and businesses get too energy efficient, the utilities can’t sell enough electricity. And yet, most offer home weatherization programs, and credits for rooftop solar panels. These utilities have whole divisions that do nothing but promote energy conservation, and they directly help customers achieve energy efficiency.

But now, many utilities find themselves facing a potential death spiral. Here in Austin, rapid growth requires expanding the utility services. City regulations do not require enough developer fees to cover all the costs associated with adding new customers. In addition, homes and businesses have become more energy efficient. As a result, Austin Energy has been losing money. They are not selling enough electricity throughout the year. Their solution is a hefty base rate increase. Austin Energy’s revenue bonds were downgraded to AA- in June. They told the Fitch bond rating service that additional rate increases, beyond this one, may be necessary.

The Utility Death Spiral Is Easily Explained

Austin Energy faces a daunting dilemma that they share with other utilities across the country. Rate increases as an ongoing business strategy will almost certainly backfire. They will push builders, homeowners and businesses to implement energy efficiency solutions at an accelerating pace. Businesses that sell solar panels have already stepped up their advertising. It’s easy to see that a whole series of rate increases, each followed by similar market responses, would drive the utility into a death spiral.

Within the next ten years, Austin residents and businesses will have a significantly lower demand for purchased power than they have today. We will always need electric utilities. As connected customers, we are assured of reliable service, assuming that the power grid holds up. But, future declines in electricity sales are inevitable. So, it is imperative for Austin Energy to find a new direction, and change their business model. Their very survival depends on it. If they don’t get it right, the City will face an additional, ominous revenue shortfall. Austin Energy’s transfer to the General Fund will have to be reduced.

If Utilities Try to Wage a Battle Against Technology, They Will Lose. And the Country’s Climate Change Efforts Will Suffer

I recently wrote a blog piece about an incredibly exciting climate change opportunity. CNN did a major study on the potential benefits of large-scale rooftop solar installations at big-box retail stores. Read that piece to get all the details.

But, the big dilemma comes back to bite us again. What if every Walmart, Home Depot, Lowes, big warehouse and distribution center across the country put solar panels on their rooftops? What if Austin put one on their massively expanding convention center? Austin Energy and the other utilities would sell a lot less electricity. And yet, we’d be addressing climate change. Severe drought, intense hurricanes, wildfires, epic flooding and West Coast water shortages might finally begin to subside. Further mitigation will become possible, once battery storage technology gets more efficient and affordable.

Some Utilities Are Pushing Back Against Solar Panel Credits

The seriousness of the utility profit / climate change dilemma is laid out in a disturbing article from NBC News, published in May. Utilities in some states are reducing their solar energy buyback rates. Austin Energy’s solar buyback program could be weakened, as part of their new rate proposal. The Sierra Club and Public Citizen are intervening in the case, to protect solar-use customers. In Mississippi and other places, utilities are telling their State regulators that maximum buyback benefits are no longer economically viable for them. The most stunning example is California, where drought and wildfires are prevalent. A battle over huge reductions in solar buyback rates has been raging there since January. Governor Gavin Newsom should step in and defend solar credits.

Utilities Need to Embrace Declining Electricity Sales

The pushback by utilities against technologies that help their customers is a major threat to national climate change efforts. The outdated utility business models are as dangerous to the environment and the planet as fossil fuels and carbon emissions. To put it quite simply, gradually selling less electricity over time must become one of the utilities’ primary goals. How to make that happen, while keeping the utilities in stable financial condition is the challenge.

Maybe the U.S. Congress Can Help

Congress is poised to pass a historic climate change bill this week. Funding will be available for energy efficiency programs and infrastructure improvements on a large scale. I have requested an appointment with Congressman Lloyd Doggett, during the August recess. One of the topics I would like to discuss is the daunting dilemma that is described here. Maybe Congress could    facilitate a series of discussions among climate scientists, utility company executives, State regulators and business strategy experts. They could task them with studying the dilemma and finding ways to resolve it. Our utilities need to counteract the death spiral, before it’s too late.

A First Step Toward the Solution

We only need to look at the frightening condition of the Colorado River to “get it” about climate change. A recent Washington Post report highlights the West Coast lakes that are drying up. The Austin City Council should stop Austin Energy’s rate increase proposal dead in in its tracks. And they should insist on maximum solar panel credits. The revenue windfall from the historic summer heatwave will buy some valuable time. With innovative planning and a fresh new approach, our city could shine a light on the rest of the nation. We should turn the daunting dilemma into an exciting opportunity for positive change.

A note about the author of this blog: I am a longtime affordability activist, with nearly 40 years of experience observing and participating in electronic utility rate cases.

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Austin Energy’s Rate Increase Tied To Not Selling Enough Electricity

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By Bill Oakey – July 28, 2022

That headline should jolt anyone out of bed, if they are not awake already. Yes, you read it right! This is a deja vu from a few years ago. We were urged to conserve water. Then Austin Water told us they were raising its rates, because they weren’t selling enough water.

The shocking news from Austin Energy seems outrageous on its face. But the philosophy behind it is chilling and disturbing. Here’s the explanation from Austin Energy’s vice president of finance: “Customers have become more efficient in their energy usage, but the current rate design is not as efficient as the customers, causing the revenue to be unable to keep up with costs. This means the old rate structure was built in a way that assumed the top energy users would to an extent subsidize the lower energy users. However, over the last 20 years, customers have become more efficient in using energy. This has eliminated a large portion of the higher-end energy users, causing Austin Energy to lose revenue.” 

Wow! Let’s think about that statement. He is literally suggesting that wealthy people who have moved into Austin neighborhoods, into big fancy homes, have made those homes more energy efficient. Therefore, the outdated rate design does not allow these folks to pay more and “subsidize” the low and middle-income folks who pay less for electricity.

Austin Energy’s shameless solution is to stick the smaller users with the highest portion of the rate increase. It would guarantee that by raising the fixed monthly customer charge by $15.00. On top of that, they want to decrease the number of rate tiers, and flatten their impact. This will lower the costs for the biggest users.

Here’s Why That Philosophy Falls Apart

1. It would exacerbate the income inequality that underlies Austin’s affordability crisis.

2. Instead of solving Austin Energy’s revenue problem, it would make it worse. Residents and small business owners at all income levels would make energy efficiency a high priority. They would use this link and this link on Austin Energy’s own website!  Yes, Austin Energy is offering us rebates and incentives to conserve. Then, with the other hand, they want higher base rates every month because they’re not selling enough electricity!

3. And get this, folks…The future outlook is even worse. On June 28, the Fitch bond rating service downgraded Austin Energy’s revenue bonds to AA-. Here is a statement from the first page of their report. “The planned rate increase is projected to contribute an additional $48 million in base rate revenues. AE expects additional base rate increases will be necessary to improve the utility’s operating cash flows and leverage profile on a sustained basis.”

Yup, that’s Austin Energy’s brilliant management plan. Watch the customer base shrink, as more homes and businesses install solar panels, energy storage batteries, etc. Have they not been adjusting their operational plans to coincide with the evolving market? It looks like they’re desperately trying to keep the ship afloat, by piling rate increases onto the masses of people who can’t afford to join the solar club.

I Have a Much Better Solution

1. Use the list of single-click links in my previous blog posting to email every City Council member and the Mayor. Ask them to cancel the proposed rate increase. The record daily highs and record high overnight lows this summer are producing historically high electric bills. This will easily shore up Austin Energy’s revenues.

2. The City Council owes it to the citizens to hold a series of public engagement sessions to evaluate the best path forward for Austin Energy. As for the ongoing formal rate hearing process – Nip it, Snip it, STRIP it! A new City Council will be sworn in next January. Why suffer through the agony of the other kind of swearing, that would accompany a raucous and contentious electric rate battle this fall? Citizens and small businesses are already being crushed by high summer bills.

3. Ausin Energy is the most important asset that our city owns. It provides us with electricity. But it is also a vital revenue source for the City’s general fund. Their financial dilemma needs to be carefully evaluated by our new Mayor and City Council. And most importantly, you and I and our friends and neighbors deserve a seat at the table!

Call To Action – Let’s STRIP Austin’s Electric Rate Increase Proposal!

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By Bill Oakey – July 25, 2022

On Friday July 22nd, KXAN-TV News aired a story about our oppressively high summer electric bills. The historic triple-digit heat has led to these burdensome bills, that are straining family budgets at a time of record high inflation. But, as I pointed out in the news segment, Austin Energy has a nasty surprise for us, lurking around the corner. They want to pile on a new base rate increase!

In the news interview, I explained that Austin Energy will be sweeping up the highest peak season profits in their history, from May through September. This will pour tens of millions of extra dollars into their coffers, well above their current year’s budget. The City Council will have every reason to nip the rate increase in the bud, as well they should.

But my jaw dropped to the floor, as I listened to Austin Energy’s response to that suggestion on KXAN. Here are their misleading and faulty arguments:

1. We don’t make any profits. The extra revenue is returned to the City.

2. We will earn extra revenue, but we also have additional expenses, with “the high cost of energy.”

The full costs of fuel and ERCOT power purchases are passed through to us, the customers. That charge appears on the Power Supply Adjustment line on our electric bills. The summer demand surge will undoubtedly push the charge higher. The fixed monthly amount is modified each year in November.

It’s true that Austin Energy’s revenue transfers to the general fund are not the same as a private business profit. But, here we’re talking about a revenue surplus – a windfall. In a recession or a time of high inflation, the revenue surplus can be used to keep customer rates stable. (Hint for the City Council)!

Imagine this historic seasonal windfall, with a new base rate increase stacked on top of it! That would generate even more tens of millions of extra revenue – every year. There are suspicions that the City wants to dodge the Legislative property tax cap with higher general fund transfers.

Here’s The Rub – Get Ready for a Snub!

The rate increase proposal would shift some base rate costs away from big businesses, onto residential ratepayers. And it would upend the residential rate tiers, pushing higher costs onto low and middle-income folks. We simply can’t let that happen! It’s a slap in the face in a city with extreme income inequality and an affordability crisis, plus high inflation.

It’s Time For a Call to Action!

S-T-R-I-P: Stop The Rate Increase Proposal

Nip It, Skip It, STRIP It!

My plan is to meet with neighborhood groups and civic organizations across the City, to explain what’s going on here. This is my fifth decade of affordability activism. I served on the City Electric Utility Commission from 1985-1990. This time around, we may have a victory in the palm of our hands. There are four City Council seats and the Mayor’s race on the ballot in November. Even if the current City Council adopts the lopsidedly unfair rate proposal, the new Council could scale it back or STRIP it completely. It’s up to you and me and our friends and neighbors, to elect a consumer-friendly Mayor and City Council. We can do it! Any future rate increase must not penalize small users, and it must protect residential and small business ratepayers!

Here’s What You Can Do to Help

1. Contact every City Council member and the Mayor. Ask them to STRIP (Ooooh!…They can do some of it behind closed doors, subject to the open meetings law limitations).

2. Ask the City Council to put senior discounts on the fixed customer charges for every category on our utility bills. It’s high time for the City to help our longtime residents.

3. Alert your friends, family, neighbors and co-workers. Send them the link to this blog piece.

4. Subscribe to this blog to stay up to date on our path to victory. A convenient STRIP Guide will soon be made available. It will tell it like it is in plain, simple language. The veil of special interest subterfuge will be peeled away and clearly exposed. We will wrestle our publicity-owned utility away from the special interests, and give it back to the people!

Use These One-Click Links to Send Emails to the City Council:

Mayor Steve Adler steve.adler@austintexas.gov
1. District 1 – Natasha Harper-Madison natasha.madison@austintexas.gov
2. District 2 – Vanessa Fuentes vanessa.fuentes@austintexas.gov
3. District 3 – Sabino “Pio” Renteria sabino.renteria@austintexas.gov
4, District 4 – Jose “Chio” Vela jose.vela@austintexas.gov
5. District 5 – Ann Kitchen ann.kitchen@austintexas.gov
6. District 6 – Mackenzie Kelly mackenzie.kelly@austintexas.gov
7. District 7 – Leslie Pool leslie.pool@austintexas.gov
8. District 8 – Paige Ellis paige.ellis@austintexas.gov
9. District 9 – Kathie Tovo kathie.tovo@austintexas.gov
10. District 10 – Mayor Pro Tem Alison Alter alison.alter@austintexas.gov

Musical Accompaniment for This Blog Posting:

1. “Let’s Call The Whole Thing Off” – Harry Connick Jr., from “When Harry Met Sally”
2. “The Stripper” – David Rose, 1962 #1 song
3. “Behind Closed Doors” – Charlie Rich
4. “The Streak” – Ray Stevens
5. “Heat Wave” – Martha & the Vandellas
6. “Windfall” – Rick Nelson
7. “77 Sunset Strip” – Don Ralke
8. “Tell It Like It Is” – Aaron Neville
9. “The High Cost Of Living” – Wood’s Tea Company
10. “When The Lights Go On Again” – Mary Duff

Two More Electric Bill Shocks Are Coming!

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By Bill Oakey, July 21, 2022

If you have seen your latest electric bill, you know that the historic heatwave has pushed it way up. That’s bad enough – with rents skyrocketing, along with gasoline, grocery bills and property taxes. But strap yourself in…The second and third episodes of this ugly electric bill drama are right around the corner. At least we may have a chance to slow down or significantly curtail Episode 3. But that will require a call to action, with a united citizen backlash. (I’ll be on the front lines for that!)

Episode 2 – The Power Supply Adjustment Charge

The sky high bills that we are seeing this summer are simply based on our usage – the number of kilowatt hours that we consumed in order to beat back the heat. Most of us were propelled into the third tier of the base rate structure. Anything above 1,000 kilowatt hours is billed at a higher rate. It doesn’t take much to jingle the cash register to $25, $50 or $100 above the normal charges that we are used to seeing.

So, you might wonder, how could it get any worse? Well, there’s the little matter of power generation costs – Austin Energy’s fuel costs, plus their energy sales and purchases through the ERCOT power grid. Those net costs are passed through to the customers, but there’s a hitch. The Power Supply Adjustment is a fixed monthly charge. Austin Energy and the City Council only recalculate it once a year. So, this summer it’s relatively small. That’s because we had a mild summer last year, before the latest calculation was made. The adjustment charge will be reviewed next month, as part of the City’s annual budget discussions.

That’s when the next shockwaves will probably come to light. Many Texas utilities adjust their fuel charges and ERCOT net costs on a monthly basis. Statewide news reports are filled with grim accounts of skyrocketing electric bills. They cite the huge spike in national gas costs for power plants. That’s because of the war in Ukraine and the worldwide heatwave. Texas is one of the highest U.S. gas producers. We are exporting lots of it to Europe.

That’s where supply and demand kicks in. It falls to ERCOT to regulate the daily sales and purchases of electricity across the state. Because of the Big Special Interests who created this system, and lobbied the Legislature to keep it, we’re screwed! During peak demand periods, the price per megawatt hour for ERCOT transactions can skyrocket. The normal rate of $40 to $50 per megawatt hour can legally spike up to $5,000 per megawatt hour. It shouldn’t hit that cap unless the grid goes into a weather emergency, like it did during the 2021 winter storm. But it has already swung to well over $1,000 per megawatt hour at times, during this heatwave.

For now, we are at arm’s length from Episode 2 of electric bill shock. I have asked the City Council to give us some sort of estimate of how bad it might be. Austin Energy actually made a $100 million profit during the winter storm. They produced more electricity than they were allowed to use. So, they sold it through the grid and netted a profit. But without any usage restrictions yet this summer, we are probably on the hook for high power purchase costs.

Episode 3 – A Ludicrous and Outlandish Rate Increase Proposal

As mentioned in my last blog posting, Austin Energy wants to jack up the fixed monthly customer charge from $10.00 to $25.00. That extra $15 per month would generate a stunning annual windfall of $84 million. Suspicions abound that a great portion of that would be transferred to the City’s general fund. They could be planning to circumvent the Legislature’s 3.5% revenue cap on property tax increases.

In addition, the rate proposal calls for increasing the charges for small users of electricity. This is a shameful act from Austin Energy. Austin’s “inverted block” rate structure was never based on “cost of service.” It was proudly established over 40 years ago, pioneered by Austin consumer and environmental icon, Shudde Fath. Sticking low-income residents with such a penalty during a city affordability crisis should be unthinkable. Let’s just hope that the City Council agrees. In the meantime, we’ll have to wait out a formal rate hearing process, peppered with reams of paper full of lawyerly crosstalk and legal jumbo-jumbo.

By the way, we may not even need a rate increase. Austin Energy will be earning historic profits from a record hot season from May through September. I’ve asked the City Council to request an updated estimate on that.

A Blast From the Past

This is my fifth decade as a consumer activist in Austin electric rate battles. In the early 1980’s, I defeated a 20% electric rate increase, by getting it cut in half. Late one night, I discovered a “magic sentence” in the City Budget. It stated that the 20% rate increase was based in part on the passage of lignite bonds in a City election. Well, the budget was adopted before the election, and the lignite bonds failed. City staff forgot to mention that detail to the City Council when they passed the rate increase.

City’s Numbers On Homeless Costs Don’t Add Up

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By Bill Oakey, June 29, 2022

I took a big gulp when I read the American-Statesman article about the “funding shortfall” of $93 million for housing the homeless. The article says the City has established a mind-bogging $515 million price tag for housing Austin’s homeless over three years. There is a big push to find corporate donors to cough up the $93 million. But, as you will see, their numbers don’t add up.

For starters, you can’t take all of the homeless people off the streets and put them into a home! Too many of them have serious substance abuse and mental health issues. Experience has shown that many (but not all) of these impaired individuals cannot maintain a home properly. Some will even refuse to be placed in a home.

I mention this, not for any lack of compassion, but for the sake of practical reality. The situation simply is what it is. What the City should be doing is raising large sums of money for mental health services and substance abuse rehabilitation. That should be a major component of the homeless solution plans.

Let’s Take a Look at the Math

Regardless of the merits of any of this, the City’s numbers do not add up. The City wants to build 1,300 housing units. The Statesman article suggests that with recent construction cost increases, a typical apartment unit would cost $275,000. So, let’s put a little cushion on that, and bump it to an even $300,000. Here’s how the math comes out:

$515,000,000 Total fundraising goal
    -93,000000 Alleged shortfall
$422,000,000 Available to spend

$300,000,000 Cost per housing unit
           X 1,300 Housing units needed
$390,000,000 Actual amount needed

$422,000,000 Available to spend
 -390,000,000 Actual amount needed
  $32,000,000 Left over, WITHOUT including the $93 million “shortfall”

Now, let’s look at it another way. Suppose they did raise the additional $93 million. Here’s what would happen:

$515,000,000 Available to spend
            / 1,300 Housing units needed
$396,153,846 Cost per unit

The City’s fundraising goal would provide roughly $400,000 per newly built housing unit for the homeless. That is a whopping sum of money for a very risky proposition. It assumes that all 1,300 of these folks could, or would, actually live sustainably in their own homes.

I would expect City officials and homeless advocates to do an artful dance around these numbers. They will probably mention administrative costs. Well, I can’t imagine those adding up to the $32 million left over without the shortfall, or the full $125 million, if you tack on the $93 million.

Perhaps they are allowing for other homeless services besides housing. If that’s the case, then it brings up a huge problem with the City’s lack of transparency to the public. Where in the &@#!!_&$#! are these giant mountains of taxpayer money and private donations for the homeless actually going?? What are the metrics? 

At the very least, we deserve to see answers to these basic questions:

1. How many homeless folks have been settled into housing in the last five years?

2. What is the annual budget for cleaning up homeless camps? Is there an upcoming  budget plan for providing sufficient staff to keep these camps clean and sanitary?

3. What is the annual budget for providing substance abuse rehab and mental health services for the homeless? What are the recent annual metrics for the numbers of people successfully treated with these services?

4. Does the City have a specific policy and the necessary staff to ensure that local businesses and homeowners are sufficiently protected from homeless crime?

5. What are the metrics for resolving issues of homeless crime? How many people have been arrested per recent year? What are the City’s policies for making arrests for homeless crimes? What are the specific metrics for prosecutions, prison time served, probation granted, release without prosecution, etc.? Is there sufficient accountability imposed on homeless folks who commit crimes to discourage these offenders from doing it again?

When all of these questions are satisfactorily answered, I sincerely believe that the public and potential corporate donors will show their compassion, and be much more willing to get on board with an aggressive plan to deal with our homeless dilemma.

What Are the Requirements to Get a Free Home?

This question is not intended to reflect badly on the unfortunate folks who lose their jobs, while facing devastating medical issues they can’t afford, and find themselves out on the street. Certainly, these folks need public services. But a program that offers free homes, valued at hundreds of thousands of dollars could become very tempting. What would prevent a fraudster from storing their belongings with a friend, and pitching a tent to become “homeless?” Or, what if a group of folks facing 30% or 40% rent increases, decided to stay in Austin and try to qualify for free homes? How will the City determine who is legitimately entitled to this grand prize of a benefit?

At first glance, this question might seem preposterous to longtime homeless advocates. If so, that just proves my point about the need for transparency. Will some of the newly constructed homes be intended only for transitional housing? Can we assume that the folks have to either buy the home, rent it or move out, if they get a job and become self-sufficient? Or, are they allowed to keep the free homes for life? Will these free homes come with a Federal tax liability, like the cars that were once given to Oprah Winfrey’s audience? The public needs to know, and we haven’t been told.

There Is a Big Shortfall, But It’s Not Financial

The City’s thinking falls far short of where It ought to be. Austin has a broad range of critical needs. In all of our history, major endeavors costing hundreds of millions of dollars have been debated, discussed and decided with significant public input. Major  projects have often required months, if not years of community involvement before we came together to approve them. On the homeless issue, our City leaders have made huge financial commitments, without large-scale community input. Discussions were held, of course, but not to the extent that we know many details about how the money is being spent. Or whether the public is comfortable with the vast amounts being spent. We haven’t seen any metrics on the progress made to house the homeless, or address the mental health, sanitation and public safety components of the issue.

Austin has a major affordability problem that impacts every neighborhood. We have a lopsided, tech-based economy that has created an income inequality crisis. It threatens our diversity, and is probably not economically sustainable. The Project Connect transit plan is spiraling out of control, with ballooning cost projections. Its odds of actually being completed, with miles of tunnels and a split-level underground fantasy land are slim to none. And we face a climate change challenge that threatens our quality of life, including severe wildfire dangers.

Bottom line – $515 million is a staggering sum to put into a single basket among all of our critical needs. Especially, without transparency and community consensus.

A Parting Thought

If and when the City finally decides to provide some transparency, I would urge them to reinforce their assumptions about the viability of their homeless initiatives. Please show us some examples of other cities that have a prove record of success, using the approaches that our taxpayer dollars will be funding. Let’s hope that the outcome looks better than what we see in San Francisco and L.A.

Musical Accompaniment for This Blog Piece:

  1. “Someone’s Child” – Matthews, Wright & King
  2. “Ain’t Got No Home” – Clarence “Frogman” Henry
  3. “Green Green Grass of Home” – Tom Jones
  4. “Sloop John B” – The Beach Boys
  5. “Detroit City” – Bobby Bare

City Should Establish Lots of Senior Discounts

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By Bill Oakey – May 22, 2022

Austin’s affordability disaster has reached every neighborhood in the city. Few people were surprised by the latest round of obnoxiously high tax appraisals. Our City leaders created this problem by marketing the city relentlessly, until the growth spiraled out of control. No other city  in Texas has seen the steep rise in housing costs on the scale that exists here.

Our long term residents should not be shoved aside, just to make room for more luxury housing units. Instead, the City should look for ways to keep the older folks here. After all, we are the ones who worked, volunteered and paid our taxes, to create the lively atmosphere and high quality of life that makes Austin special.

It’s Time for the City to Implement a Full Range of Senior Discounts

I am making the following recommendations to the City Council to consider for senior discounts:

1. All fixed customer charges on utility bills – for electric, water, wastewater, trash collection

2. Admission tickets, services charges and parking fees for all events, both public and private, that are held at City-owned facilities or on City-owned land. This includes music festivals, wine tastings and the multitude of other events at Zilker Park, Botanical Gardens, Auditorium Shores, etc.The City’s contracts with private entities that use City parks and facilities should be modified to require senior discounts.

3. General admission and parking for City parks and City facilities at all times, even when no special events are happening. State and national parks already provide senior discounts.

4. Fees for all parking meters, parking lots and parking garages throughout the city. This includes libraries, City Hall and all other City facilities.

The City should roll out this initiative with a major public relations campaign. They should encourage all private businesses to partner with them and offer similar senior discounts. We are starting to see far too many luxury events with sky-high prices. And it can cost an arm and a leg just to park, before going in to these events. That’s fine for the folks who can shrug it off with a few taps on their phones. But, it’s high time for our City officials to recognize that Austin still has some of the local people who cannot light a cigar with a $100 bill.

How Austin Can Lead The Way On Climate Change

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 By Bill Oakey – May 10, 2022

CNN recently published an article that provides a climate change and affordability solution that is perfect for Austin. Big-box stores are starting to install solar panels on their rooftops and portions of their giant parking lots. IKEA has already taken an early lead in this endeavor, with 54 solar installations, covering 90% of their stores nationwide. The cost savings and climate change benefits that could be achieved if more stores did this are enormous. Check out these points, summarizing CNN’s findings:

1. From September to December 2020, IKEA cut its energy purchases by 84% and slashed its energy costs by 57% at their Baltimore store. Meanwhile, the cars in their parking lot stayed cooler in the shade provided by the solar panels.

2. A report from the nonprofit Environment America estimates that solar panels could cut the electricity needed by big-box stores and shopping centers by 50%.

3. The same report found that if big-box stores nationwide installed solar panels, it would generate enough electricity to power 8 million average homes. The climate change impact would be equivalent to pulling 11.3 million gas-powered cars off the road.

4. The average Walmart has 180,000 square feet of rooftop. That’s equal to 3 football fields of space. It’s enough for solar panels to generate the electricity needed to power 200 homes.

Three Words Come to Mind for Austin – Let’s Do It!

 This initiative will require a coordinated effort from both public and private sector officials. There are some hurdles and strategic planning efforts that will come into play. In Austin, we may have permitting and other regulatory requirements. These could be reviewed and possibly adjusted to encourage the installations. The CNN study found that some big box stores have roofs that may need repairs or modifications to accommodate solar panels. The City Council should consider appointing a task force to engage the stakeholders, evaluate the situation and make recommendations on how best to move forward.

IKEA installed solar panels at its Round Rock store in 2012. Just imagine how much the technology has improved since then. What are we waiting for?

Austin Energy Would Need to Rethink Its Future Plans

A sudden large-scale shift to solar panels would impact Austin Energy’s ability to sell enough electricity to keep their operations financially viable. But, more solar installations are coming online already, some of which include entire residential subdivisions. Some serious discussions need to be held, regardless of this proposal. Part of Austin Energy’s reason for their pending rate increase is related to lower sales to customers in new, energy-efficient homes.

Here Are Some Things That Our City Officials Can Do

1. Explore whether Austin Energy can legally sell power directly to other utilities, and / or offer it for sale on the Texas power grid.

2. Do a detailed study on the impact of scaling up rooftop solar installations, and chart a path to gradually accommodate it. This can include reducing power generation from other sources, and rethinking Austin Energy’s future power generation plans. Another critical aspect would be evaluating the optimal mix of base load vs. peaking power capacity. This will ensure that we always have enough power to meet the demand during periods without a lot of sunshine.

3. Reach out to other major cities and large utilities, to determine best practices for a smooth transition toward large-scale solar installations.

4. Explore options to use available Federal funds for expanding solar infrastructure. Contact members of our Congressional delegation to seek assistance under both existing and potential new legislation.

5. This opportunity is hiding in plain sight – Put a solar installation on the roof of our massively expanded Austin Convention Center (!)

Let’s Not Forget About Rapidly Evolving Battery Storage Technology

This is the icing on the cake. Elon Musk and others are already manufacturing and selling new models of home and industrial battery installations to store solar power. These are following the path of solar panels, in rapidly becoming more affordable and of higher quality. City, State and Federal officials should review the excellent 2018 U.T. Honors Program thesis by my good friend, Maddie Bratcher. The title is “Gridlock on the Power Grid: How Battery Storage Technology Reveals Challenges to the Lone Star State.”

The future is now for both large-scale solar and battery storage. To quote an old fashioned saying, the train is roaring down the track. Austin needs to either hop on that train, or get out of the way. My advice is to move to the front of the train and lead the way!

Musical Accompaniment for This Blog Piece

1. “Up On the Roof” – The Drifters
2. “Walk Right In” – The Rooftop Singers
3. “Bring Me Sunshine” – Willie Nelson
4. “Here Comes the Sun” – The Beatles
5. “Walking In the Sunshine” – Roger Miller

Kathie Tovo For Austin Mayor – Wouldn’t It Be Great!

3 Replies

By Bill Oakey – January 18, 2022

Is your voice being heard at City Hall? If it isn’t, there’s a pretty simple reason. The special interests are the ones with all the connections. While you and your family are busy out working, the Big Money lobbyists and their cronies are always lurking at City Hall. Some are arrogant and some are real friendly. But their concern for you doesn’t add up to diddley.

So, many of us are wishing and hoping that Kathy Tovo will run for Mayor. Word has it that she is very close to a decision. If she doesn’t want it, we really can’t force her…

But if she does, I’m ready to endorse her!

Kathie Tovo

With Kathie Tovo in the Mayor’s chair, we could finally start chip-chipping away at that big thick wall that separates us regular folks from the insiders at City Hall. So, if she decides to run, what would you want her to include in her campaign platform? Let’s start thinking about that, just in case. I would propose some ideas on affordability. Then I would work with her office staff, and urge them to launch a couple of big initiatives right away. All I need is for her campaign to give me the word and start me up!

How Tough Would It Be To Get Her Elected?

This probably wouldn’t be an easy race for us to win. Every square inch of our City that hasn’t been nailed down is up for sale to the highest bidder. It’s too late to bring back the unique hometown ambiance and funky weirdness that helped the marketers lure more people here. The new Austin is still a wonderful place, but it’s fraught with many challenges. Not all of us drive Teslas and toss away $25 to $50 a pop to park at a soccer stadium. Some of us care more about a tasty down home meal than an overpriced joint with a fancy chef from Paris or Milan. Kathie Tovo is our strongest voice at City Hall. Don’t get me wrong, though. She has proven that she can bring all sides together and reach consensus on reasonable solutions to big, contentious issues.

So, if Kathie runs, how can we help her win?

In a nutshell, it’s up to you. We have elected grassroots candidates for Mayor before. But it’s a lot of hard work. You and your friends and their friends would all need to pitch in and help. If Kathy Tovo ran and won, she would be our first woman elected Mayor since the election of 1981. That was 41 years ago! Kathy supports the current development code requirement that neighborhoods must be notified in advance on proposed zoning changes. She can be counted on to work out a plan that allows more density in some areas, but not nearly as threatening to as many existing neighborhoods as what’s in the latest draft of the revised code.

Kathie did not vote to slash the police budget. As part of the City Council majority, she approved streamlining the operations, with much better handling of mental health related cases, and a whole host of other impressive reforms. The lack of officers on the job is largely caused by a backlog of new hires needing to complete the cadet training classes. The revisions to the cadet training program, which led to some delays, will pay off in the long run with much better protocols and safer outcomes during arrests. We need to share that message widely.

Here’s the Final Big Question…

Trustworthy grassroots candidates for Mayor with an amazing staff of experienced, knowledgable and responsive people are hard to come by. We might have to wait a million years for the next opportunity. So, if she runs here’s the big question. Can compassionate Austinites unite to support a proven leader who feels strongly about bringing people together to solve problems, and help heal our economic divide? I believe there’s a song that answers it – Yes, we can…can!

Musical Accompaniment for This Blog Posting

  1. “Wouldn’t it Be Great” – Loretta Lynn, title song from her 2018 album, recorded at age 85
  2. “Wishin’ and Hopin'” – Dusty Springfield, 1964, written by Hal David & Burt Bacharach
  3. “Chip Chip” – Gene McDaniels, 1962
  4. “Start Me Up” – The Rolling Stones, 1981
  5. “It’s Too Late” – Carole King, 1971, from her 13X platinum album, “Tapestry”
  6. “It’s Up to You” – Ricky Nelson, 1962
  7. “I’d Wait a Million Years” – The Grass Roots, 1969
  8. “Yes We Can Can” – The Pointer Sisters, 1973, their first hit single. Listen joyously to the positive, unifying message in the lyrics! It fits so well today that it could have been written yesterday. it was written by the legendary New Orleans pianist, singer, songwriter and producer, Allen Toussaint.

Lyrics – Yes We Can Can

Now’s the time for all good men
To get together with one another.
We got to iron out our problems
And iron out our quarrels
And try to live as brothers.
And try to find peace within
Without stepping on one another.

And do respect the women of the world.
Remember you all have mothers.
We got to make this land a better land
Than the world in which we live.
And we got to help each man be a better man
With the kindness that we give.
I know we can make it.
I know darn well we can work it out.

Oh yes we can, I know we can can
Yes we can can, why can’t we?
If we wanna get together, we can work it out.
And we gotta take care of all the children,
The little children of the world.
‘Cause they’re our strongest hope for the future,
The little bitty boys and girls.

We got to make this land a better land
Than the world in which we live.
And we got to help each man be a better man
With the kindness that we give.
I know we can make it.
I know darn well we can work it out.
Oh yes we can, I know we can can
Yes we can can, why can’t we?
If we wanna, yes we can can.

You Can Help Win The Taxpayer Battle!

1 Reply

By Bill Oakey – April 28, 2021

Let’s cut right to the chase. We now have the facts we need to win a taxpayer victory, with the Federal Rescue Plan funds. The City will have to recognize that an 8% maximum tax increase won’t be necessary in the upcoming budget. They can simply cover the shortfall with the Federal funds. You’re going to be amazed, when you see how obvious the evidence looks:

1. Houston – City Controller Chris Brown says, “A $615 million influx of federal funds will help Houston stave off a potentially disastrous budget season.”

2. New Orleans – Officials said that they hope to stretch the funds to cover what could be years of budget shortfalls from the drop-off in tourism and sales taxes.

3. Grand Rapids, Michigan – Proposed budget shortfalls offset by American Rescue Plan

4. Memphis – This is the clincher! Mayor Strickland: “Federal funds will go to budget shortfalls, the tax rate will go down.”

5. Kansas City, Missouri – Received $195 million, exactly what Austin got! They will use it to restore budget cuts and enhance public services.

Check out my clumsy attempt at poetry, and then hit the single-click link to send an email to the Mayor and all 10 City Council members.

What’s wrong with some of our local officials?
Are they too inept to even write their initials?
All they have to do is look around
The solution is right there, so easily found

From Memphis to Grand Rapids, and towns in between
They’re applying Federal funds to their budgets so lean
In Austin where homes are so hard to afford
They just want to tax us, good gracious, Good Lord!

I research this stuff in the dead of night
And I’m nowhere near ready to give up the fight!
So, City Council members and County Commissioners too
The taxpayers are advancing, you know what to do!

Please use this single-click link to email the Mayor and City Council. Be polite, ask them to do right, and we can win this fight!

Then share this blog piece with everyone you know, and post it on social media.

Musical Accompaniment For This Blog Piece:

1. “Memphis” – Johnny Rivers
2. “Way Down Yonder In New Orleans”– Freddy Cannon
3. “Houston” – Dean Martin
4. “Saginaw, Michigan” – Lefty Frizzell
5. “Kansas City” – Wilbert Harrison
6. “Walkin’ To Missouri” – Sammy Kaye, 1952. First record in my music collection, at age 5

How Austin Can Apply COVID Rescue Funds To Tax Relief

1 Reply

By Bill Oakey – April 27, 2021

Winning a battle to help the taxpayers is not an easy task. It’s like climbing up a hill backwards during a snowstorm in the dark. But it can be done, and this time it really must be done!

Get Ready To Go Down Into The Weeds!

This is what I have learned so far in researching the Federal American Rescue Plan Act. I am sharing this information with the Austin City Council:

1. Drill down on the American Rescue Plan details. Here is a good summary.

Take note of Item 2. on Page 17, under “Allandale Use of Funds”:

2. for the provision of government services to the extent of the reduction in revenue (i.e. online, property or income tax) due to the public health emergency.

This provision nails it. Austin has lost sales tax, property tax and various fee revenues since the pandemic began. These revenue losses can be covered with American Rescue Plan (ARP) funds. Some or all of the City’s projected budget shortfall can be covered with these funds. Here’s how to determine the exact amount:

This information is from the bottom of Page 2, in this Texas Municipal League document.

Eligible uses of ARP funds include:

– Responding to the public health emergency with respect to Covid-19 or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality.

– Responding to workers performing essential work during the pandemic by providing premium pay to eligible workers performing services inside recipients’ territories, or to eligible employers that have eligible workers who perform essential work.

– Providing government services to the extent of the reduction in revenue of such recipient due to the pandemic relative to revenues collected in the most recent full fiscal year of the recipient prior to the pandemic.

– Necessary investment in water, sewer, or broadband infrastructure.

The third bullet applies to our City Budget. Our most recent full fiscal year prior to the pandemic was FY 2019. It appears that pandemic-related revenue losses in the FY 2020 Budget are covered by the Rescue Plan funds, to the extent that the added revenues will bring the total up to the FY 2019 level, for each type of revenue. This provision does not make clear whether any FY 2021 revenue losses can be replenished with Rescue Plan funds. Please address this question to the Texas Municipal League or the U.S. Treasury. If I find out, I will let you know. You have until December 31, 2024 to spend the Rescue Plan funds. So, you could easily apply them to next year’s Budget, and provide relief on taxes and fees.

2. The Rescue Plan funds can be used for various health initiatives and social services. Many of these programs are funded annually in the City Budget. It seems to me that you should be able to apply the Rescue Plan funds directly to those eligible services, in lieu of property taxes. That would be in addition to the revenue shortfalls that you are allowed to cover.

Here’s the Bottom Line

You folks on the City Council have a unique opportunity to bring tax relief to homeowners and small businesses during this stressful period of the pandemic. This should be an easy win-win for everyone concerned. Think about these words from the recent KXAN News story:

Patrick Brown, a former Travis County chief appraiser, said with people already strained, an increase in the property tax calculation cap may put too much of a tax burden on Austinites. 

“It’s definitely going to affect all the commercial properties and land, and rental properties and the landlords, particularly ones that have acquired a mortgage loan in the last two or three years,” Brown said. 

That, in turn, he said will affect rental rates. 

“And that could push a number of residents out into the periphery and make Austin even less affordable than it is already,” he said.

Stay Tuned and We Shall See What Happens…

The next step is to ask the Travis County Commissioners to use part of their $247.1 million in Rescue Plan Funds for property tax relief. This news article makes no mention of their planning to do any such thing.