Austin’s remaining operational power plant is set to go dark.

The Austin Utilities Board of Commissioners voted earlier this month to decommission the Northeast Power Plant starting in June of 2016.

Discontinuing operation of the plant is not expected to impact customer rates, as Austin Utilities currently obtains nearly all its electric needs from Southern Minnesota Municipal Power Agency (SMMPA) through an agreement that is set to expire in 2030.

“Not running that power plant doesn’t really affect our power supply; it shouldn’t affect rates,” General Manager Mark Nibaur said.

The board’s 4-1 vote was based off of Austin Utilities staff report “Austin Utilities Power Supply & Resource Plan.”

Many factors lead to the decisions: inefficiencies of the plant, low electric market prices and local upgrades that have significantly reduced the potential need for the plant.

Ultimately, the board determined it was in the best interest of the customers to move forward with decommissioning the Northeast Power Plant.

SMMPA discontinued its agreement to buy power produced at the plant in September of 2010. The plant has been used mostly for peak times and to regulate voltage in the area’s electric system, according to Nibaur.

The board also voted to continue operating the Northeast Power Plant and to sell the capacity of the plant through May of 2016.  Austin staff will begin negotiating to sell the available capacity into the electric market.

The Northeast Power Plant is a 30 Megawatt power generating facility commissioned in 1971. The plant was fueled predominately with coal until 2012 when the Austin Utilities board set direction to eliminate the burning of coal in favor of natural gas, an effort to meet future environmental regulation requirements and reduce operating costs.

Nine people currently work at the plant, and Nibaur said the board and staff will discuss employee changes, as well as potential savings as the plan moves forward.

Nibaur welcomed input from the public as the plan moves forward.

Austin Utilities serves about 12,300 electric customers, 10,300 natural gas customers, and 9,000 water customers.