Resource Management Commission audits Austin Energy's district cooling system for financial viability

The Resource Management Commission convened on May 20, 2025, to discuss critical issues surrounding Austin Energy's district energy and cooling system. The meeting focused on the financial underperformance of the system and the need for a comprehensive audit to assess its future viability.

The commission began by outlining the expectations for an upcoming report from PFM, the city's financial advisor, which is due by October 1, 2025. This report will evaluate various options for the district energy and cooling system, including potential expansion or divestment strategies. The commission emphasized the importance of this audit in identifying the financial drivers behind the system's current challenges.

Vice Chair Robbins highlighted the ongoing concerns regarding the system, noting that discussions about its future have been ongoing since July of the previous year. The commission expressed frustration over the lack of clear answers from Austin Energy and decided that an independent audit by the city auditor would provide a necessary third-party perspective.

A resolution was proposed to formally recommend that the City Council commission this audit. The resolution aims to ensure that Austin Energy publicly shares a strategic roadmap detailing the timeline and rationale for any planned changes to the district energy system. The commission debated the necessity of the resolution, with some members arguing that it was redundant given Austin Energy's commitment to conduct a review.

Commissioner Silverstein, a co-sponsor of the resolution, acknowledged the importance of the audit but expressed willingness to withdraw the resolution if it was deemed unnecessary. The discussion highlighted differing opinions on the effectiveness of the previous meetings with Austin Energy staff and the need for ongoing collaboration between the commission and the utility.

As the meeting progressed, members voiced their concerns about the timeline for the audit and the potential impact of delaying the process. The consensus was that while the audit is crucial, it should not hinder the timely implementation of any recommendations that arise from PFM's report.

In conclusion, the Resource Management Commission's meeting underscored the urgency of addressing the financial issues facing Austin Energy's district energy and cooling system. The commission plans to follow up on the audit's findings and ensure that the City Council is updated on the progress by the end of September 2025. The outcome of this audit will be pivotal in determining the future direction of the district energy system and its role in meeting the city's energy demands.