A Message from General Manager Stuart Reilly: Austin's Clean Energy Future Still Requires Reliable Backup

May 15, 2026

Austin is growing. Maybe not at the incredible pace of a few years ago, but our economy is expanding, our population is increasing, and expectations for reliable, affordable, environmentally sustainable power have never been higher.

As the new general manager of Austin Energy, I owe our community something simple but often uncomfortable: the truth.

The truth is that we are in the middle of the most complex energy transition in modern history. And while our commitment to sustainability is real and unwavering, so are the challenges we face to keep the lights on every hour of every day. To move forward, we must have clarity about where we stand today along with confidence in where we’re going.

Austin Energy is asking for the City Council’s approval on May 21 to purchase new, more efficient, natural gas peaking units that start at a moment’s notice when the grid needs them. We will ask for the minimum amount necessary to protect reliability and the affordability of energy market costs for our customers.

Let’s start with what we cannot ignore. Electric demand is rising. Manufacturing, transit projects, electric vehicles, and the electrification of homes and businesses are all expanding. This shift is good for the environment and good for the economy, but it also puts more pressure on our local grid than at any point in recent history.

At the same time, we’ve retired older, higher-emission power plants, and we are adding cleaner alternatives such as wind, solar and battery storage. These are significant and necessary steps that reflect our values and long-term direction. But as we accelerate these investments, the risks of extreme weather — risks our community knows all too well — are increasing.

We are planning the grid for a future that looks very different from the past. For decades, Austin Energy has been a leader in fighting climate change. Now, we are also responding to its impacts. The energy transition is not as simple as swapping one resource for another. As demand rises and extreme weather becomes more frequent, progress does not eliminate complexity — it reveals it.

Renewable energy is essential to our future and already a major part of our portfolio. We’re an industry leader at more than 70% carbon-free energy production, but achieving our clean energy future can’t happen if we ignore the challenges.

Solar and wind alone cannot address the risks we face during extreme weather, when demand is at its peak and reliability matters most. Battery storage is improving rapidly, but it cannot yet replace the need for power that can start instantly and run as long as necessary.

That brings us to Austin Energy's proposal to add the natural gas peaking units as part of the approved Resource Generation Plan.

We need to be clear about what that means and what it does not. It does not mean stepping away from climate goals. It does not mean slowing down the clean energy transition.

It means acknowledging our most fundamental responsibility: when our customers flip a switch, the power must turn on. Hospitals, schools, small businesses, and families depend on that reliability. And when the power goes out, it is the most vulnerable who are hit hardest.

Natural gas peaking units are a tool we expect to use sparingly, providing flexibility and backup power as we build a cleaner, more complex grid.

Austin will continue to lead in building a more environmentally sustainable and resilient energy system. But leadership is not pretending the path is easy. It is doing the hard work, planning carefully, investing responsibly, and being honest with the community we serve.

We’re not choosing between a reliable grid and a sustainable one. We’re choosing to build both — and we must be clear about what it takes to achieve this energy transition.