Construction on Austin Energy's Trading Post Feeder Tie Project could begin within 60 days from the date of most recent correspondence Oct. 23. A Sept. 21 memo to Bee Cave city staff showed the date of when Austin Energy first informed the city about the project, as the utility is required to do under an existing franchise agreement.
Council members at the Nov. 14 meeting wanted to know what options existed for burying the wires—a more expensive option, estimated to top $1 million, or 10 times the cost of overhead wires—according to council records.
Of five property owners along the stretch whom Austin Energy notified, one, developer Adrian Overstreet, told council he would offer to pay $150,000 toward the cost of burying the wires “to help beautify the city.”
Overstreet’s development group, Hill Country Texas Galleria, LLC holds title to an undeveloped tract behind the Target store that lies alongside Bee Cave Parkway.
Farther west along the Parkway, Backyard developer Christopher Milam also expressed interest in contributing ‘pro rated’ funds to "maintain the aesthetics of the area."
A spokesperson for Austin Energy told Community Impact Newspaper the utility would be open to burying the lines if the City of Bee Cave is willing to “substantially share” in the cost.
“To maintain fairness, Austin Energy requires developers and/or customers to pay the additional expense to underground facilities so as not to socialize these costs to all customers," said Austin Energy spokesperson Jennifer Herber in an email.
Urgent matter
Council Member Money Parker told council Austin Energy seemed unwilling to slow down to work with developers to fund burying the lines.
“I don’t see anything that makes it so urgent,” he said at the meeting. “They seem unwilling to slow down to work with the developers we have talked to, to partner with and fund [the underground line project].”
An Austin Energy spokesperson said the utility does not have much time to give to a delay.
“The project is necessary to increase the safety and overall reliability of electric service to both existing and future customers in the city of Bee Cave. The Feeder Project is time critical and must be constructed prior to the peak loading period, which will occur during the summer months of 2018,” said Jennifer Herber with Austin Energy.
During peak times, Herber said this distribution circuit has consistently exceeded its capacity rating, and the reliability of the electric service in the area is at risk.
“The circuit loading situation in Bee Cave is reaching a serious level. Overloading circuits beyond their maximum rating could lead to possible failure and outages,” Herber said.
Past concerns
Mayor Caroline Murphy explained the origin of council’s concern as dating back to Austin Energy’s apparent reluctance several years ago to use hundreds of feet of unused conduits under the Hill Country Galleria.
“It was very disappointing when it came time for Austin Energy to decide they needed to put additional [power] service along Bee Cave Parkway behind the Galleria, it was disturbing to find they were just going to proceed with overhead poles,” she told the meeting.
Austin Energy told city staff in the memo the new lines on the other end of the Parkway are needed to allow the utility to have improved line switching flexibility, and allow for future capacity upgrades in the area when vacant land in the area is developed.
Mayor Caroline Murphy told the meeting attendees she was also puzzled why Austin Energy had incorrect information on affected property owners and once told, still decided to maintain the project’s timing.
“We want our people to have good, reliable power. [But] the projects that they cited were needing this additional service, they had incorrect information on them.”
One parcel is dormant, the mayor said, and the city of Bee Cave owns the Skaggs property which she told the meeting will not be developed any time soon and not for a retail use.
In March 2011, the city executed a 10-year franchise agreement that permits Austin Energy to install power distribution lines in its jurisdiction. In return, the utility pays the city 3 percent of gross revenues generated, council records showed.
