Austin Energy has a new General Manager. Here's what he sees for future of the department

New Austin Energy General Manager, Bob Kahn, Wednesday, Aug 9, 2023, at Austin Energy Headquarters.  Kahn spoke about his role as Austin Energy General Manager.
Ricardo B. Brazziell / Austin American-Statesman

Austin American-Statesman
Ella McCarthy, Austin American-Statesman
August 10, 2023

Austin Energy has a new general manager, but he’s no stranger to the department or the utilities business. 

Bob Kahn, who assumed the role in early July, has spent much of his career in the electric industry – previously serving as deputy general manager, general counsel and vice president for legal services at Austin Energy. He most recently worked at the Texas Municipal Power Agency as the general manager.

Kahn now oversees the city-owned electric utility that serves over half a million customers, according to the city. He replaced the Interim General Manager Stuart Reilly, who took over for Jackie Sargent after she retired in March.

The city has faced public scrutiny over its handling severe weather-related incidents have left residents without power in recent years, including when hundreds of thousands of Austin homes and businesses went without power in early 2023.

Spencer Cronk, Austin's former city manager, was fired in February in part due to the city's response to the storm.

"We need to be nimble, flexible," Kahn said. "We need to make sure that we have reliable power."

Kahn spoke with the American-Statesman about where the department is at now and what he would like to see in the future.

Extreme weather

Austinites are no stranger to extreme winter weather. The city was battered with an ice storm in early 2023 that left many without power for days. In 2021, a weeklong February freeze caused severe power outages and left 28 people dead.

In cases of severe storms, the department needs to do a better job of assessing the problem, Kahn said.

When the 2023 storm brought more ice than predicted, Austin Energy wasn't ready, Kahn said.

"Then we went on TV and said, 'Here's when we think power is going to be back on,' and we were incorrect," Kahn said.

Despite calling in around 400 additional crew members from surrounding areas, because of the devastation, "the power was going to be out for at least a week or so," Kahn said.

When asked about what Austin Energy is doing to prevent severe weather-related outages from happening in the future, Kahn didn't provide specifics, instead referring to an after-action report due to be released later this month.

The report, focusing on the 2023 storm, will be released with recommendations and exercises to prepare for such weather-related events in the future, Kahn said.

An after-action report was also released following the 2021 winter storm outages that detailed the key things that went wrong and why, and what could be done to prevent it in the future.

Short-term and long-term goals

One of Kahn's short-term goals is to address shortages in parts and labor necessary for Austin Energy operations.

For example, the city has at times struggled to obtain electric transformers because of supply chain issues related to the materials used to make them, according to Austin Energy. Transformers are crucial electronic components that safely change the voltage level from one circuit to another, helping to power homes and businesses.

"Instead of looking in the (United) States for stuff – transformers, wood poles, cable – we're looking worldwide," Kahn said. "We're looking at Mexico, China, Korea and the States to buy the stuff that we need, and we're actually making good progress on that."

In the long-term, "we need to maintain the financial strength of the utility," Kahn said.

Austin Energy is expected to receive a budget of nearly $1.5 billion for the coming year from the city.

The city's $5.5 billion 2023-24 budget draft won't be finalized until the city council votes on the budget, which is scheduled to take place August 16.