Based on Capital Improvement Project (CIP) data from Austin Energy for the Fayette Coal Power Project:
- CIP funding for coal rose from $0.2 million to $74.4 million (up 449 X) in the past 10 years
- CIP funding for coal jumped from $32.4 million in 2007 to $74.4 million in 2008 (up 130%)
Unlike Fuel and O&M costs, major capital investments are not required every year and fund major improvements that typically last for decades. The graph below shows the CIP investment by year.
Austin Energy made a commitment to extend the life the Fayette coal plant in recent years with significant investment for low NOx burners and about $233 million over multiple years for “scrubbers.” Austin Energy has disclosed that it is financing at least part of the CIP coal investments over 30 years. This minimizes the allocation of costs to the current operating year and may under-represent costs if the coal plant does not operate for 30 additional years.
