Austin City Council to consider $320M battery storage agreement July 23

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Austin City Council is scheduled to consider on July 23, 2026 an authorization to negotiate and execute a battery storage agreement that, according to staff, is for an estimated amount not to exceed $16,000,000 per year and a total agreement amount not to exceed $320,000,000, for a term of up to 20 years. Funding is described as contingent upon available funding in future budgets.

The agreement is with Balcones Ridge Resiliency II, LLC, described in the agenda and staff materials as a Jupiter Power subsidiary. The City’s requested authorization is to negotiate and execute under the posted limits—not necessarily a guarantee that every final negotiated detail matches the estimates in the paperwork.

What Council is being asked to authorize i

On the City’s Energy agenda item labeled Item 6, Austin City Council is being asked to authorize negotiation and execution of the battery storage agreement with Balcones Ridge Resiliency II, LLC for:

• Up to 200 megawatts (MW) of electrical power capacity
• An estimated amount not to exceed $16,000,000 per year
• Up to 20 years for the term
• A total agreement amount not to exceed $320,000,000

The agenda text also says the funding is contingent upon available funding in future budgets.

Project basics: the provider, the capacity target, and the “why now” i

In staff’s backup for Legistar File 26-2096, Austin Energy points to the company Jupiter Power as the next step in the City’s battery storage procurement after a prior attempt for a different project did not move forward commercially.

Staff says that in November 2025, Austin Energy issued an “All-Resource Request for Proposals (RFP)” for local energy resources. The City previously authorized—on May 21, 2026—a battery storage agreement with OCI Energy, LLC for up to 100 MW, with operation slated for 2030. Staff says after that May 2026 authorization, Austin Energy and OCI Energy were unable to come to agreement on commercial terms.

Staff then describes Jupiter Power as participating in the same All-Resource RFP and as having a Council-approved tolling agreement for 100 MW of battery capacity. Austin Energy’s staff materials say Jupiter Power included proposals for additional battery storage at its Austin site that is under development, and that—because the OCI project was no longer viable—Austin Energy recommends moving forward with Jupiter Power’s project instead.

Cost recovery through Austin Energy’s PSA pass-through i

Staff says the battery storage agreement costs would be recovered through Austin Energy’s Power Supply Adjustment (PSA) pass-through charge. The backup materials also describe this as similar to how power purchase agreement costs are recovered.

In practical terms, PSA pass-throughs run through Austin Energy’s rate/rider processes. That means Council’s authorization to negotiate and execute under the posted limits does not, by itself, guarantee a specific customer bill impact without the later rate process details.

Electric Utility Commission recommendation i

Backup documents also include the Electric Utility Commission’s recommendation. According to the Electric Utility Commission recommendation summary included with the Council packet, the Electric Utility Commission recommended the item on July 20, 2026 on an 8-0 vote, with Commissioner Benavides off the dais, Commissioner Blackburn absent, and one vacancy.

What to watch on July 23 i

If Council votes to authorize Item 6, residents will likely want to track any next disclosures that follow negotiation/execution—especially if later documents clarify how the PSA pass-through mechanism applies and whether any details differ from the “estimated” and “not to exceed” parameters in the initial staff memo.

Sources

• Austin City Council July 23, 2026 agenda (Energy, Item 6)
• Legistar backup memo (Recommendation for Action, File 26-2096)

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