In a move that could reshape the way Austin manages its energy resources, City Manager T.C. Broadnax has announced plans to explore the sale of Austin Energy's district cooling system, as per a memo that outlines the city's intention to seek assistance from J.P. Morgan Securities LLC in assessing the system's market value and potential buyers, the Austin Monitor reported.

Central to downtown Austin's climate control infrastructure, the district cooling system currently services thousands with chilled water for air conditioning—and it does so by powering up during the night when the electricity demand is lower, thus easing the energy load during peak times and enhancing overall system efficiency, but now, the city mulls the sale of this profitable sector, which in 2019, as reported by the Austin American-Statesman, netted a $3 million gain off of a $22 million investment made to operate the system, Austin Monitor indicated.

The city's rationale for considering the sale is that divesting from the cooling system might allow for greater investment in the core energy grid, with Austin Energy emphasizing that the potential sale would not affect their half a million customers and would enable debt payoff and capital freeing for crucial grid improvements, as per  Austin Monitor. However, not all share the city’s optimism, including notable local environmentalist Paul Robbins, whose name adorns the downtown chilling plant and has voiced concerns based on the Austin City Charter's restrictions against the sale of significant municipal utility facilities.

Mayoral candidate Doug Greco said, "Why are Mayor & City wanting to privatize one of its best energy efficiency and climate protection programs (District Energy and Cooling system) and give J.P. Morgan Securities a big cut of the proceeds? Privatizing AE has been a Republican priority," while the city has yet to signal a unanimous decision on this potential privatization approach, no Council member currently endorses this project, the Austin Monitor revealed.