Austin Energy exploring power plant involvement; pauses current plan

AUSTIN (KXAN) -- Austin Energy will take up City of Austin Mayor Kirk Watson's charge to get out of a coal-fired power plant sooner rather than later. However, a new memo from the city indicates it may not happen as quickly as the mayor wants.

Austin Energy announced it would pause the current process of working with the Electric Utility Commission on the 2030 Climate Protection Plan.

KXAN previously reported on the Fayette Power Project near La Grange. The Lower Colorado River Authority (LCRA) and Austin Energy co-own part of the plant, which has been in operation since the 1970s.

Watson said last month he wanted Austin out of the Fayette Plant no later than January 2029. The Fayette Plant is one of the plants included in a University of Texas research project, which looked at health impacts of coal energy nationwide.

In the new memo, the utility company revealed it will explore options, which include continued discussions with the LCRA about how to get out of the power plant. It also means addressing new generation opportunities, including how such a move would impact the demand for Austin Energy.

This could then determine whether a simple update to that plan is needed or if Austin Energy needs to focus on a 2035 plan in an effort to achieve a "carbon-free future," according to the memo.

Furthermore, the LCRA told KXAN at the time that no matter what happens in Austin, it plans to continue operating the plant.