The Resource Management Commission voted to transfer $30,000,000 of over-recovered power supply adjustment funds into Austin Energy's power supply stabilization reserve to bring the reserve in line with the utility's financial policy.

Stuart Riley, Austin Energy deputy general manager of business services, told commissioners the utility’s financial policy “requires Austin Energy to overall have a 150 days cash on hand as a minimum.” He said the policy includes a sub-requirement that the utility hold a reserve equal to about 90 days of power supply costs—about $140,000,000 by tally—and that the reserve currently stands at roughly $110,000,000. “This would take $30,000,000 of over recovery power supply adjustment funding...to fully fund that power supply stabilization reserve,” Riley said.

The commission discussed the origin of the shortfall and whether it was caused by recent cost increases or previous withdrawals. Riley said both factors contributed: Austin Energy had previously used reserve funds in 2023 when power supply costs spiked and rising costs have since increased the dollar amount that represents a single day of reserve. He added that under the utility’s tariff, power-supply-related funds can now be used to replenish the power supply stabilization reserve.

Commissioners moved and seconded the action and approved the transfer by voice/hand vote; no roll-call tally was recorded in the transcript.

The action brings the reserve into closer alignment with the financial policy target, and staff said the transfer uses recovered power-supply funds rather than base-rate revenue.

The commission also approved several other consent items at the same meeting; the approval of those items did not change the substance of the reserve transfer.

Looking ahead, Riley and other staff are expected to continue reporting on financial metrics and reserve status in regular finance briefings.