[00:00:03]
SO CITY HALL, ARE YOU GUYS READY? READY WHEN YOU ARE.
[CALL MEETING TO ORDER ]
GREAT.HOW DO YOU WANT TO DO THIS? UM, I MEAN, I THINK LIKE, I GUESS, UH, I WILL OFFICIALLY CALL US TO THE ORDER HERE.
UH, THE RMC HAS A CORN, SO WE'RE CALLING THIS MEETING TO ORDER.
UM, LIKEWISE, I WILL CALL THE ELECTRIC UTILITY COMMISSION MEETING TO ORDER AT ONE 39 ON MARCH 8TH TO 2021.
AND MARTY, I'M HAPPY TO HAVE YOU, UH, TEND TO TAKE US THROUGH FACILITATING PROBABLY, UM, MAKES SENSE FOR YOU TO, UM, FOR ONE OF US TO DO THAT.
UM, I'M ALSO HAPPY TO HELP KEEP TRACK OF THE, UM, YOU SEE THERE RMC, UH, KIND OF MEMBERS AS THEY POP UP WITH QUESTIONS.
UM, I WILL SAY WHAT, WHAT MARTY AND I BRIEFLY DISCUSSED VIA AS THE MOST MINUTE TEXT MESSAGES HERE WITH, UH, TO EACH PRESENTER, GIVE THEIR FULL PRESENTATION AND THEN TAKE QUESTIONS AFTER EACH PRESENTER SO THAT, YOU KNOW, THEY CAN GET THROUGH THEIR PRESENTATION.
UM, AND THEN, YOU KNOW, IT JUST TO KIND OF ALTERNATE BETWEEN THE COMMISSIONS, UH, IF, IF THERE ARE MEMBERS FROM BOTH COMMISSIONS THAT HAVE QUESTIONS SO THAT WE CAN JUST, UH, TRY TO GET TO EVERYBODY.
UM, AND THEN WE'LL, WE'LL KIND OF DO THAT.
I THINK WE HAVE THREE OR FOUR PRESENTERS IF I'M NOT MISTAKEN, BUT, UH, MARTY, IF YOU WANT TO TAKE IT FROM HERE.
[CITIZEN COMMUNICATIONS: GENERAL ]
FIRST UP ON THE AGENDA IS CITIZEN COMMUNICATIONS AND I BELIEVE WE HAVE TWO FOLKS THAT HAVE SIGNED UP FOR CITIZEN COMMUNICATIONS FOR THE JOINT MEETING.AND IF YOU, UH, WHEN WE GET YOU IN LINE HERE, IF YOU COULD PLEASE INTRODUCE YOURSELF, UH, AND THEN, AND THEN YOU HAVE THREE MINUTES, JUNE, JUNE, BUT PAUL ROBBINS LIKE TO COME UP FIRST ON HERE.
I'M AN ENVIRONMENTALIST AND CONSUMER ADVOCATE AND OBSERVER OF AUSTIN ENERGY SINCE 1977.
BEFORE MY MAIN COMMENTS ON OUTAGES, I WANT TO ASK THE CHAIR OF THE RESOURCE MANAGEMENT COMMISSION TO POST ME ON THE NEXT AGENDA TO DISCUSS THE UTILITIES BROKEN CUSTOMER ASSISTANCE PROGRAM.
MONEY HAS BEEN GIVEN TO THE WRONG PEOPLE OR THE WRONG PURPOSE FOR FAR TOO LONG.
MY PURPOSE IN SPEAKING THOUGH REGARDS MY OBSERVATIONS ABOUT THE RECENT POWER OUTAGES AND HOW THEY AFFECT AUSTIN GOING FORWARD, PLEASE REFER TO THE CHART IN THE BACKUP MATERIAL ON PAGE NINE.
IT SHOWS AUSTIN ENERGY'S POWER GENERATION BY FUEL.
DURING THE OUTAGE, I HAVE ASKED FOR MORE SPECIFIC INFORMATION BY POWER PLANT, AS OPPOSED TO POWER SOURCE, BUT SINCE THE UTILITY HAS A HABIT OF SPIKING, MY INFORMATION REQUESTS, UH, I AM NOT SURE THAT I WILL GET THIS INFORMATION IN A TIMELY OR GRACEFUL MANNER.
UH, THIS CHART IS INSTRUCTED ABOUT WHAT IS STATED AND NOT STATED IT DOES NOT SHOW WHAT THE POWER YOU SHOULD HAVE BEEN.
IF ELECTRICITY WERE NOT CURTAILED, IT DOES NOT SHOW WHICH UNITS WERE DOWN FOR MAINTENANCE OR LACK OF WINTERIZATION.
STILL GIVEN THAT MOST OF THE POWER CAME FROM DISPATCHABLE SOURCES AND NOT RENEWABLES.
IT PROMPTS ENOUGH CAUTION IN ME TO SUGGEST THAT UNTIL MORE IS KNOWN THE PLAINTIFF RETIREMENTS OF DECKER GAS PLANT, IN FACT, FAYETTE COAL PLANT SHOULD BE TEMPORARILY DEFERRED.
UH, HAD THIS DISASTER OCCURRED TWO YEARS FROM NOW.
AFTER THESE PLANTS, UH, SCHEDULED RETIREMENT, AUSTIN WOULD BE IN A PRECARIOUS ECONOMIC POSITION AND THE PUBLIC WOULD BE BLAMING THE PEOPLE WHO SHUT THESE PLANTS DOWN.
THIS SPEAKS TO THE SUBJECT THAT I HAVE REPEATEDLY STATED OVER THE LAST SEVEN YEARS, WE HAVE NO DISPATCHABLE POWER THAT IS RENEWABLE.
THIS LEADS TO MY SECOND POINT, AUSTIN ENERGY, ALONG WITH OTHER UTILITIES, CITIES AND NONPROFITS
[00:05:01]
IN TEXAS NEEDS TO START INVESTING IN DEVELOPMENT OF DISPATCHABLE, RENEWABLE ENERGY.AUSTIN ENERGY IS VEHEMENTLY OPPOSED TO THIS.
TWO OF ITS EXECUTIVES HAVE TOLD ME TO MY FACE THAT IT IS NOT THE UTILITIES PLACE TO DEVELOP TECHNOLOGY.
IF YOU WANT A GRID THAT IS FREE OF DIRTY FOSSIL AND FISSILE POWER, YOU'RE GOING TO NEED DISPATCHABLE ALTERNATIVES AND THE UTILITY WILL NEED TO TAKE A VERY ACCURATE.
UM, THANK YOU FOR YOUR COMMENTS, MR. ROBBINS.
SO, UH, DO YOU WANT TO GO AHEAD? OKAY.
SO NEXT UP WE'VE GOT A, IT LOOKS LIKE STATUS.
I'M A PROFESSOR OF THE UNIVERSITY OF TEXAS.
I WORK IN THE AREA OF ENERGY, BUT I'M ONLY HERE TO REPRESENT MYSELF TODAY.
I'VE BEEN LIVING IN AUSTIN FOR 25 YEARS, LIKE MANY OTHERS.
MY FAMILY LOST POWER DURING THE RECENT STORM WHO WERE LIKE HERE.
BUT MANY SINCE OUR PIPES DID NOT BURST, WE WERE ABLE TO FIND WARM SHELTER FOR A COUPLE OF NIGHTS.
AUSTIN ENERGY DID MANY THINGS DURING THE STORM, AND I WANT TO PARTICULARLY THANK THE AUSTIN ENERGY CREWS THAT GO VERY HARD AND THEY'RE VERY DESERT CONDITIONS TO RESTORE ELECTRICITY, BUT THE STORM ALSO REVEALED PROBLEMS. THEY HELP US TO MANAGE.
WE WILL ADDRESS BEFORE THE NEXT TIME A STORM LIKE THIS HAPPENS.
ONE PROBLEM WHO IS THE FINANCIAL RISK OF COSTING ENERGY ON BEHALF OF THE RESIDENTS OF AUSTIN, POST ANALOGY WAS LUCKY AND WAS ABLE TO GENERATE ENOUGH ELECTRICITY TO COVER THE NEEDS OF THE RESIDENTS.
AUSTIN ENERGY PROBABLY ENDED UP WITH A FINANCIAL WINDFALL.
I HOPE IT USES IT TO PREPARE BETTER FOR NEXT TIME, BECAUSE THIS TIME THE STORM REVEALED THAT TRUSTING ENERGY TOOK A LARGE RISK OUTAGES, NATURAL GAS PLANTS, AND WIND GENERATION AND DEPENDENCE.
THAT WAS WELL KNOWN BEFORE THE STORM CARE.
AT THE SAME TIME AS OUTAGES OF COAL AND NUCLEAR PLANTS, THESE DEPENDENCIES DANGEROUS AND LIKELY TO BE PROBLEMS. AGAIN, THE SECOND PROBLEM WAS COSTING ENERGIES IN THE ABILITY TO ROTATE OUT NATURAL POSTING ENERGIES LOAD TURNED OUT TO BE CRITICAL.
60% OF THE REMAINING 40% WAS LEFT WITHOUT POWER FOR DAYS, LEAVING PEOPLE WITHOUT POWER WAS THE CAUSE OF MOST DAMAGE TO PROPERTY AND LIFE.
I HOPE THE ENERGY WILL ADDRESS BOTH PROBLEMS, NOT ONLY IN THE LONG RUN, BUT ALSO IN THE SHORT RUN IN THE LONG RUN MOVIES, CLEAVAGE GENERATION AND COUPLING TEMPORARY AND PERMANENT BATTERY STORAGE TO THE GRID WILL HELP THAT IN THE SHORT RUN.
I HOPE THE FIRST THING ENERGY WILL CONSIDER INCREASING THE AMOUNT OF LOAD THAT CAN BE INTERRUPTED ONE WAY WOULD BE BY HEARING ADDITIONAL INCORRUPTIBLE CONFLICTS, ESPECIALLY WITH INDUSTRIAL AND COMMERCIAL CUSTOMERS AND ANOTHER TO BETTER SEPARATE THE LOAD THROUGH THE CRITICAL STRUCTURES, SUCH AS HOSPITAL COMMUNICATION CENTERS FROM ADJACENT ROAD.
PEOPLE SAY THE STORM WAS UNPRECEDENTED, BUT IT ONLY HAPPENS EVERY HUNDRED YEARS.
I HOPE THIS IS TRUE, BUT HOPE IS NOT A PLAN.
AND THIS TIME THE PLAN FAILED, MAYBE IT WILL NOT BE NEEDED, BUT I ARE EXPECTING YOUR ANSWER TO DEVELOP A BETTER PLAN.
THANK YOU, MR. TOM FIGHT IS WE HAVE ONE MORE SECOND COMMUNICATION, I BELIEVE.
NEXT UP WE HAVE JEN KRIEGER, HELLO, UTILITY AND RESOURCE MANAGEMENT COMMISSIONS.
MY NAME IS JEN KRIEGER AND I'M SPEAKING ON MY OWN BEHALF THIS AFTERNOON.
I'M NOT COMMENTING ON THE CURRENT AGENDA ITEM RELATED TO THE IMPACT OF WINTER STORM URI.
INSTEAD, I WOULD LIKE TO REQUEST A FUTURE AGENDA ITEM FOR BOTH COMMISSIONS ASKING FOR AUSTIN ENERGY TO PROVIDE INFORMATION ABOUT THE MOST RECENT REORGANIZATION THAT PLACE ITS CUSTOMER ENERGY SOLUTIONS OR CS UNDER THE DIRECTION OF DEPUTY GENERAL MANAGER CARRY OVER 10, ALONG WITH CUSTOMER SERVICE AND COMPLIANCE FUNCTIONS OF THE UTILITY.
THIS CURRENT STRUCTURE IS OUTLINED IN THE ONLINE OR CHART DATED FEBRUARY 1ST OF THIS YEAR.
[00:10:01]
THIS IS THE FIRST TIME THAT THE VP OF CS HAS NOT REPORTED DIRECTLY TO THE GENERAL MANAGER ON ITS SURFACE.THIS CHANGE APPEARS TO DEPRIORITIZE THE ENVIRONMENTAL COST SAVINGS, RESILIENCY, AND OTHER BENEFITS THAT CES PROGRAMS HISTORICALLY HAVE PROVIDED TO AUSTIN ENERGY CUSTOMERS AND SOCIETY AT LARGE, THIS PERCEIVED BURYING OF AUSTIN INTERVIEWS, QUOTE ON QUOTE GREEN PROGRAMS HAS BEEN A CONSISTENT TREND AND THE GENERAL MANAGER SERGEANT'S LEADERSHIP AND NOT OF HER PREDECESSOR ARE ENVIRONMENTAL AND RESILIENCY PROBLEMS ARE ONLY WORSENING AS CLIMATE CHANGE AFFORDABILITY AND RACIAL AND ECONOMIC INEQUITIES DEEPEN IN OUR COMMUNITY.
AND SPEAKING TO SOMEONE WHO HAS WORKED WITH CES STAFF AND PROGRAMS SINCE 2007, HAVE WITNESSED CES CULTURE AND EMPLOYEE MORALE WORSENED OVER THE PAST DECADE.
THIS PAINS ME BECAUSE I CARE DEEPLY ABOUT THESE CES EMPLOYEES AND THEIR PROGRAMS, AND BECAUSE LOW EMPLOYEE MORALE TYPICALLY TRANSLATES TO POOR PERFORMANCE AND PRODUCTIVITY.
I WOULD LIKE TO HEAR FROM AUSTIN ENERGY LEADERSHIP ABOUT THE RATIONALE FOR THE MOST RECENT ORGANIZATIONAL CHANGES AND HEAR THEIR PLANS AND PRIORITIES FOR CES AND RELATED.
AND SHE GETS ON A RELATED NOTE.
I ALSO FIND IT CONCERNING THAT IN THE CURRENT ORG CHART, THERE ARE ONLY TWO POSITIONS WITH THE WORD COMMUNICATIONS IN THE TITLE THAT OF THE VP OF REGULATORY AFFAIRS AND CORPORATE COMMUNICATIONS AND CORPORATE COMMUNICATIONS DIRECTOR.
BOTH OF THESE TITLES REFER TO CORPORATE COMMUNICATIONS, NOT PUBLIC OR COMMUNITY COMMUNICATIONS.
THIS STRIKES ME AS ODD SINCE AFTER ALL AUSTIN ENERGY IS A PUBLIC UTILITY THAT SERVES WITH LOCAL COMMUNITY, NOT CORPORATE SHAREHOLDERS.
WHAT I DO NOT SEE IN THE TITLES AND PLACEMENTS OF POSITIONS ON THIS ORG CHART IS A FOCUS ON AUTHENTIC COMMUNITY DIALOGUE AND PARTNERSHIP AS A COMMUNICATIONS PRIORITY.
AND I WOULD ALSO APPRECIATE AUSTIN ENERGY SPEAKING TO THIS AT A FUTURE MEETING.
FINALLY, I'D LIKE TO POINT OUT THE GENERAL MANAGER SERGEANT'S PROFILE ON AUSTIN ENERGY WEBSITE STATES.
SARGENT BELIEVES AUSTIN ENERGY CAN BE A GREAT VALUE TO ITS CUSTOMERS BY FOCUSING ON THESE FIVE CORE VALUES, SAFETY, FINANCIAL INTEGRITY, OPERATIONAL EXCELLENCE, AND RELIABILITY, EXCEPTIONAL CUSTOMER SERVICE AND ENGAGED EMPLOYEES.
NOWHERE IN THIS VALUE STATEMENT IS AN EXPLICIT REFERENCE TO COMMUNITY OR ENVIRONMENTAL BENEFIT.
SO PERHAPS THIS MOST RECENT ORG CHART DOES REFLECT AUSTIN ENERGY'S VALUES.
BUT IN THAT CASE, I QUESTIONED WHETHER THE UTILITIES VALUES REFLECT THOSE WITH THE COMMUNITY IT SERVES AND AT THE CITY COUNCIL THAT OVERSEES IT.
NEXT ON THE AGENDA IS OUR A STAFF PRESENTATION AND BRIEFING ON THE FEBRUARY STORM WINTER STORM EVENT.
AND AS A COMMISSIONER WHITE MENTIONED, THERE ARE MULTIPLE SPEAKERS.
UM, AND JUST, JUST BEFORE WE GET STARTED, I WOULD LIKE TO NOTE AT THE OUTSET, UM, THAT, YOU KNOW, WE, WE ALL, AS, AS MEMBERS OF THE AUSTIN COMMUNITY WENT, WENT THROUGH THE STORM TOGETHER AND I THINK, YOU KNOW, SAW THE TREMENDOUS HUMAN SUFFERING, UH, AND, AND ALL OF THE CONSEQUENCES THAT THAT MANY ARE STILL FEELING.
AND, AND THAT THIS IS ON TOP OF, YOU KNOW, A YEAR OF PANDEMIC AND, AND OTHER FINANCIAL ECONOMIC AND HEALTH CRISES.
UM, RECOGNIZING THAT, THAT, THAT, YOU KNOW, THIS WAS AN EXTREMELY DIFFICULT, UH, SITUATION.
AND, AND THOUGH IT MAY BE, UH, YOU KNOW, HISTORIC IN NATURE AND UNPRECEDENTED, UNPRECEDENTED, AND ALL THE OTHER TERMS THAT WE'VE HEARD.
UM, I, I DO THINK THAT THESE TWO BODIES HERE IN PARTICULAR ARE MADE UP OF PEOPLE WITH, WITH A LOT OF, UM, SUBJECT MATTER EXPERTISE AND, AND, AND A, A HEART FOR SERVICE.
AND THAT I, MY HOPE IS THAT THESE, THESE BODIES ARE, UM, THAT, THAT WE USE OUR POSITIONS TO, UH, HELP AUSTIN ENERGY AND, AND CITY COUNCIL, UH, COME UP WITH, WITH PLANS FOR HOW TO AVOID SOMETHING AS CATASTROPHIC AS WE EXPERIENCED IN THE FUTURE, UH, DESPITE A UNPRECEDENTED OR HISTORICAL, UM, WEATHER EVENT.
AND SO THAT, THAT'S MY HOPE GOING FORWARD.
AND W WITH THAT, UM, MR. JACKSON, I'LL, I'LL LET YOU GET STARTED.
I'M GOING TO START OUT SYDNEY THAT'S OKAY.
[1. Briefing on February 2021 Winter Storm Event ]
COMMISSIONERS.I'M JACKIE
FIRST, AS WE LOOK AT WHAT HAPPENED DURING THE RECENT WINTER STORM, LET ME SAY THAT AUSTIN ENERGY SHARES YOUR FRUSTRATION AND DESIRE FOR IMPROVEMENTS DURING THE ERCOT GRID, EMERGENCY PEOPLE SUFFERED AND ENDURED SIGNIFICANT HARDSHIP.
MY TEAM AND I ARE REALLY SORRY FOR THAT.
ADDITIONALLY, MY TEAM AND OUR INDUSTRY AS A WHOLE ARE LOOKING AT WAYS TO BETTER PROTECT
[00:15:01]
CUSTOMERS FROM THESE SITES OF THE EVENTS IN THE FUTURE.AS WE CONDUCT AN AFTER ACTION REVIEW, WE WILL LOOK FOR OPPORTUNITIES TO HARDEN OUR SYSTEMS, ENHANCE OUR RESPONSE EFFORTS AND IMPROVE COMMUNICATIONS, OUR CITY, OUR COMMUNITY, AND OUR STATE MUST BE BETTER PREPARED FOR THE NEXT SEVERE MULTI-DAY WEATHER EVENT.
WE ARE PUBLIC SERVANTS, AND WE TAKE OUR DUTY TO OUR CUSTOMERS AND OUR COMMUNITY.
WE MUST WORK TOGETHER TO FIND SOLUTIONS TO ADDRESS THIS EMERGENCY AND PLAN FOR THE FUTURE.
I WOULD LIKE TO SAY HOW THANKFUL I AM TO UTILITY WORKERS HERE IN AUSTIN AND ACROSS THE STATE FOR THEIR HEROIC EFFORTS, LINE WORKERS, UH, POWER PLANT STAFF, VEGETATION, CREWS, CONTROL, ROOM OPERATORS, CUSTOMER CARE REPRESENTATIVES, AND THE WHOLE AUSTIN ENERGY TEAM WORKED AS HARD AS I'VE EVER SEEN PEOPLE WORK, EVEN WHEN FACED WITH THEIR OWN PERSONAL CHALLENGES DURING THIS EMERGENCY TODAY, CONSISTENT WITH THE PRESENTATION THAT WAS PROVIDED TO THE AUSTIN ENERGY UTILITY OVERSIGHT COMMITTEE, CHIEF OPERATING OFFICERS, SYDNEY JACKSON WILL PRESENT A TIMELINE OF EVENTS.
DIRECTOR OF CORPORATE COMMUNICATIONS.
MARISA MONROY WILL GIVE A SUMMARY OF OUR COMMUNICATIONS PROCEEDING AND DURING THE EVENTS CHIEF CUSTOMER OFFICER CARRIE OVERTON, WE'LL TOUCH ON CUSTOMER ASSISTANCE PROGRAMS AND BILL RELIEF MEASURES.
AND FINALLY, VICE-PRESIDENT OF REGULATORY AFFAIRS AND CORPORATE COMMUNICATIONS.
TAMMY COOPER WILL SHARE INFORMATION REGARDING POLICY DISCUSSIONS AND REGULATORY COMPLIANCE ACTIVITIES.
I'LL TURN IT OVER TO SYDNEY JACKSON FOR AN OPERATIONAL OVERVIEW OF THE EVENTS THAT TRANSPIRED SYDNEY.
THANK YOU, GENTLEMEN MANAGER AND GOOD AFTERNOON COMMISSIONERS AGAIN.
I'M THE DEPUTY GENERAL MANAGER AND CHIEF OPERATIONS OFFICER FOR AUSTIN ENERGY.
MY OBJECTIVE OVER THE NEXT SEVERAL MINUTES IS JUST TO GO OVER THE TIMELINE OR MAJOR EVENTS THAT LED UP TO THE ERCOT GRID EMERGENCY ON DO THAT.
GIVEN THAT WE HAVE LIMITED TIME, I AM GOING TO TRY TO BE BRIEF AND GET THE HIGHLIGHTS.
UM, MY FOCUS WILL BE ON THE WINTER STORM EVENT THAT BEGAN THURSDAY, FEBRUARY 11TH, AND CONTINUED THROUGH MOST OF THE WEEK.
WE'RE ACTUALLY THE WHOLE WEEK.
AND AS YOU KNOW, THOSE STORM EVENTS WERE, UH, A SIGNIFICANT PREREQUISITE FOR, UH, OR CONTRIBUTOR TO THE ERCOT GRID EMERGENCY OR THE SEVERE LOAD SHEDS THAT STARTED MONDAY, FEBRUARY 15, FOLLOWING MY BRIEF REMARKS, OUR DIRECTOR OF COMMUNICATION, MISS MARISSA MONRO.
WE REPORT OUT ON EXTERNAL COMMUNICATIONS, THOSE COMMUNICATIONS THAT AUSTIN ENERGY INITIATED BEFORE, DURING AND AFTER THE ELECTRIC GRID EMERGENCY.
UM, NEXT SLIDE, PLEASE, PLEASE.
AND WHEN THE STORM HAVE BEEN IMPACTED AUSTIN, THAT IMPACTED AUSTIN, UH, WAS A A HUNDRED YEAR STORM EVENT, AS YOU'VE ALREADY HEARD.
UM, AND THIS EVENT IMPACTED MUCH WITH THE SOUTH CENTRAL REGION.
THE STORM COULD REALLY BE CATEGORIZED AS A CONTINUING STORM, AND THAT IT WAS UNIQUE TO THE AUSTIN THAT GEOGRAPHY DIDN'T, THAT THIS CONTINUING STORM, THE POSITIVE WAVE AFTER WAVE OF, UH, SNOW ICE, FREEZING RAIN WITH MULTIPLE BOUTS THAT COVERED OUR VEGETATION IN A CUMULATIVE AND ADDITIVE MANNER.
AND THE SLIDE CLEARLY SHOWS SOME OF THOSE CHALLENGES.
NEXT SLIDE, PLEASE, IN TERMS OF OUR EMERGENCY RESPONSE AND PREPAREDNESS AUSTIN ENERGY WAS FOCUSED ON THE WEATHER FORECAST.
WE UNDERSTOOD HIS POTENTIAL IMPACT, UH, ESPECIALLY AFTER THE PREVIOUS MONTH OF JANUARY 10TH AND 11, GOING THROUGH A SNOW EVENT THAT WASN'T NEAR AS SERIOUS AS THIS PARTICULAR ONE, OUR INCIDENT COMMAND STRUCTURE WAS IN PLACE PRIOR TO THE STORM.
OUR CREWS WERE SCHEDULED, UH, IN ANTICIPATION OF THE STORM AND THEY WERE MOBILIZED AND READY TO RESPOND.
UH, DURING THE EVENT, OUR CREWS WERE STRATEGICALLY SEQUESTERED AT TIMES TO ASSURE THEIR AVAILABILITY AND THIS INCLUDE FIELD, FIELD CREWS, POWER PLANT PERSONNEL CONTROL, AND OPERATIONS PERSONNEL.
AND IN SUNDRY OF, UH, OF OTHER, UH, PERSONNEL.
NEXT SLIDE, PLEASE, AS THIS SLIDE SHOWS THE DEGREE OF ICE THAT FORMED ON EDUCATION WAS A SIGNIFICANT, IT CAUSED NUMEROUS OUTAGE AS A GRAPHIC SHOW OF THE VEGETATION ON THE POWER LINES WAS EXTENSIVE.
UM, THESE RESULTED IN DIFFICULTY, UH, JUST DUE TO THE EXTREME TEMPERATURES,
[00:20:01]
UH, TRAVEL SAFETY CONCERNS.AND ONE THING THAT CAN'T REALLY BE REPRESENTED HERE IS THAT AUSTIN ENERGY PERSONNEL, AS OUR GM GENERAL MANAGER COMMUNICATED, THEY WORKED TIRELESSLY AROUND THE CLOCK, UH, TO RESTORE A SERVICE.
AND THEY OFTEN DID IT WHILE THEIR OWN FAMILY AND LOVED ONES, UH, WERE IN, UM, IN HARM'S WAY AS WELL.
I WILL SPEND A LITTLE BIT MORE ON THIS SLIDE AS IT SPEAKS TO THE NUMBER OF CUSTOMERS THAT WERE OUTAGE DURING THE EVENT.
UM, THERE'S THREE BOXES THAT GO ALONG THE TIMELINE FROM THE LEFT STARTING OF THAT THURSDAY, 11TH, ALL THE WAY OUT TO SATURDAY, FEBRUARY 20TH, AND THE VOLUME OF THE GRAPH JUST RECOMMEND REPRESENTS THE CUSTOMERS THAT WERE OUTAGE.
LET ME START AT THE YELLOW BOX ON THE LEFT.
AND THAT IS ESSENTIALLY THOSE CUSTOMERS THAT WERE OUTAGE PRIOR AND THE EMPHASIS IS ON THE ERCOT STORM EVENT.
AND THAT WOULD BE THE THURSDAY, FRIDAY, SATURDAY, AND SUNDAY TIMEFRAME, ESSENTIALLY FEBRUARY 11TH, FEBRUARY 14, OUR PEAK CUSTOMER OUTAGES IN THIS YELLOW BOX AREA WAS 33,833.
AND THAT WAS DESPITE NUMEROUS WAVES OF LICENSED STORM THAT CAME THROUGH OUR SERVICE TERRITORY.
UM, AND AGAIN, THIS IS PRIOR TO THE ERCOT EVENT, THE RESTORATION IN THIS EVENT, IN THIS TIMEFRAME WAS MADE ESPECIALLY DIFFICULT DUE TO REPEAT IT OUTAGES OFTEN ON THE SAME CIRCUIT, UH, WITH THE REPEATED BOUTS OF ICE AND SNOW COMING THROUGH THE AREA, IT WAS COMMONPLACE FOR US TO RESTORE, UM, THE SAME CIRCUIT, NOT ONCE, BUT MULTIPLE TIMES JUST DUE TO REPEATING, UH, VEGETATION COMPROMISE.
UM, YOU CAN ATTRIBUTE THAT TO, UH, ESSENTIALLY THERE WAS A SIGNIFICANT AMOUNT OF REWORK.
WHAT YOU SEE HERE IS JUST THE NET CUSTOMERS THAT WERE OUT AT ANY GIVEN TIME.
THE ACTUAL NUMBER OF CUSTOMERS WOULD BE MORE BECAUSE IT WAS ADDITIVE AS IT WENT ALONG AGAIN, A VERY DIFFICULT SCENARIO, JUST DUE TO THE NUMEROUS WAVES OF ICE AND SNOW THAT COMPROMISED OUR SERVICE TIER SERVICE TERRITORY.
AS YOU KNOW, OUR GOAL IS TO RESTORE ALL CUSTOMERS AS SOON AND AS SAFELY AS POSSIBLE.
AND IN THIS YELLOW BOX, AS WE CROSSED INTO SATURDAY NIGHT, GOING INTO SUNDAY MORNING, UH, EFFECTIVELY ALL OUR CUSTOMERS WERE, WERE RESTORED, BUT AS WE APPROACHED SUNDAY MORNING, AGAIN, CONTINUING ADVERSE WEATHER.
AND AS, AS WE CAME INTO SUNDAY MORNING, UM, WE HAD MORE OUTAGES, APPROXIMATELY 822.
UH, CUSTOMERS WERE STILL OUT OF SERVICE AS WE TRANSITIONED INTO THE RED BOX.
UH, AGAIN, THOSE 822 CUSTOMERS, WE WERE WORKING DOWN.
UM, BUT THEY WERE THE RESULT OF THIS CONTINUING WAVE OF ADVERSE WEATHER.
LET'S TRANSITION TO THE RED BOX, UH, IN THE MIDDLE.
AND THAT BOX INSTITUTES, ESSENTIALLY THE ERCOT LOAD SHED INITIATIVE, THE MONDAY, TUESDAY AND WEDNESDAY TIMEFRAME SEPT, UH, FEBRUARY 15TH, 16, AND 17.
OUR PEAK CUSTOMER OUTAGE DURING THIS TIMEFRAME WAS 220,000 CUSTOMERS WITHOUT POWER.
AND IT WAS THE RESULT OF MANDATORY AND SEVERE ERCOT LOAD SHED, UH, GREATER THAN 40% OF OUR TRUCKS, PERCENT OF OUR CUSTOMERS.
UH, AND OBVIOUSLY THIS EMERGENCY GRID DIRECTOR WAS TO BRING, UM, LOAD IN LINE WITH POWER GEN POWER GENERATION AVAILABLE TO ERCOT LOOKING AT THIS RED AREA.
MANY CUSTOMERS OFTEN ASK WHY COULDN'T BOSTON ENERGY COMMUNICATE WHEN THEY WOULD BE RESTORED OF GERMANY.
THIS RED PHASE, ERCOT IS A TEXAS RED ELECTRIC GRID AUTHORITY.
THEY ISSUED DIRECTIVES TO AUSTIN ENERGY TO EXECUTE THOSE LITTLE SHEDS.
AND SIMILARLY ERCOT ISSUED THOSE DIRECTIVES TO EVERY TRANSMISSION PROVIDER AND JUST PR DISTRIBUTION PROVIDER IN THE REGION.
DURING THIS PHASE, IT WAS THE EDA THREE EMERGENCY ERCOT DETERMINES WHEN AUSTIN ENERGY WILL SHED LOAD AND WHEN AUSTIN ENERGY AND OTHERS WOULD RESTORE LOAN OR CUT ALSO DETERMINES HOW MUCH AUSTIN ENERGY IS TO SHED AND HOW MUCH AUSTIN ENERGY IS EVEN STORE AUSTIN ENERGY DID NOT HAVE A VANTAGE POINT AS TO THE DIRECTION OR THE SEVERITY OF BURN PROTECTIVE PERSPECTIVE LOAD SHIFTS.
AS YOU KNOW, ERCOT COD HAS THE TELEMETRY TELEMETRY FOR MOST REGENERATION GENERATION AND TRANSMISSION FACILITY IN THE STATE OF TEXAS.
[00:25:01]
AND ERCOT ONLY HAS THAT WIDE VANTAGE POINT, THAT WIDE INFORMATION, AS WELL AS IT SINGULARLY HAS THE LEGAL CHARTER TO IMPLEMENT LOAD SHEDS AS HAS BEEN PREVIOUSLY COMMUNICATED.OUR OBJECTIVE WAS TO EXECUTE ROTATING OUTAGES AS ERCOT IMPLEMENTED LOAD SHEDS AUSTIN, AND ARE JUST WANT TO REASSURE YOU.
AUSTIN ENERGY SYSTEMS WERE STANDING BY AND READY TO EXECUTE OUTAGE ROTATIONS.
OUR SYSTEMS WERE AT THE READY, BUT AS YOU HEARD, THE ACTUAL DEPTH OF THE LOAD SHED CURTAILMENTS WERE SO SEVERE THAT TO EXECUTE A LOAD SHED WOULD HAVE, OR COULD HAVE RESULTED IN A COMPROMISE SO CRITICAL LOADS AND CRITICAL LOADS, OFTEN BEING POLICE, FIRE, EMERGENCY RESPONDERS IN THE LIFE, MOVING TO THE BACK END OF THE RED BOX.
UH, FORTUNATELY, UH, AS WE APPROACHED, UM, THE LATE TUESDAY OR EARLY WEDNESDAY TIMEFRAME, EVEN WHILE ERCOT WAS STILL IN THREE, WHICH IS THE HIGHEST LEVEL OF EMERGENCY ACTION LEVEL OR CO WAS, UH, DIRECTING, UH, AUSTIN ENERGY AND OTHERS TO RESTORE LOAD AND AUSTIN ENERGY, AS WELL AS OTHERS, UH, RESTORED AS SAFELY AND AS QUICKLY AS POSSIBLE WHILE ADHERING TO ERCOT SCHEDULE PACE AND MOVING TO THE FINAL PHASE AS THE GREEN BOX ON THE RIGHT, WHICH ESSENTIALLY IS THE RESTORATION PHASE, UM, POST THEATER, COTTON LOAD SHED.
THIS WOULD NORMALLY BE THE THURSDAY, FRIDAY AND SATURDAY TIMEFRAME, FEBRUARY 18TH, 19TH, AND 20TH.
UM, AUSTIN ENERGY HAD NOMINALLY 99% OR GREATER OVER CUSTOMERS RESTORED BY SATURDAY 12 NOON.
AND THAT WAS IN PART BY AIDED AIDED BY FAVORABLE WEATHER, BUT WE STILL HAD SOME WIND AND WE STILL HAD COMPROMISED VEGETATION THAT CONTINUED TO CAUSE US CHALLENGES.
AND, UH, THOSE WERE CHASED OR PROBABLY THE NEXT DAY, UH, IN A VERY GRANULAR, UM, BUT AGAIN, WELL, WELL LESS THAN 1% OF OUR, OUR SERVICE TERRITORY.
UH, CAN WE MOVE TO THE NEXT SLIDE PLEASE? THIS SLIDE IS SIMILAR TO THE LAST SLIDE.
IT JUST REEMPHASIZES THE WAVE AND WAVE OF CONTINUOUS STORMS ON THE DIFFICULT, STILL DIFFICULT RESTORATION, UM, CONDITIONS.
THE REALITY SCENARIO THAT PRE PREVIOUSLY MENTIONED, UM, WE HAD CLOSED CRAP TRAFFIC COURT TORE DOORS.
DURING THIS TIME, THE ROADS WERE FRANKLY IMPASSABLE, UH, ESSENTIALLY A SUSTAINED OVER VORTEX, LOW FREEZING TEMPERATURES, UH, FOR AN EXTERIOR EXTENDED PERIOD OF TIMES.
AGAIN, THE MAIN TAKEAWAY OF THIS SLIDE IS SUSTAINED REPEATED SYSTEMIC OVERBOARD TECHS AND SEVERE WEATHER WEATHER THAT CONTINUED WELL PAST THE INITIAL STORM OF THURSDAY AND FRIDAY TIMEFRAME MOVING TO THE NEXT SLIDE.
AND AGAIN, I'M TRYING TO, I KNOW WE HAVE LIMITED TIME AND I'M TRYING TO TOUCH ON THESE HIGH EVENTS, HIGH LEVEL EVENTS.
THIS SLIDE TAKES SPEAKS TO THE UNPRECEDENTED NEAR COLLAPSE OF THE TEXAS ELECTRICAL GRID EXPECTS TO THE TARGETED ELECTRIC GRID, FREQUENCY OF 60 HERTZ.
THAT'S WHERE IT, UH, IS TARGETED.
UH, AND AT THE LOW POINT OF THIS SLIDE, WE ARE DEVIATION WAS, WAS DOWN TO ALMOST 59.3 HERTZ.
THIS IS A 30 MINUTE TIMEFRAME FROM THE LEFT EDGE TO THE RIGHT EDGE OF THIS GRAPHIC.
AND IT JUST SHOWS THE PERVASIVE AND THE RELIANCE UPON SHOWED LOW CHADS.
DURING THIS 30 MINUTE TIME, IT WAS PROBABLY THE MOST, UH, SEVERE, UH, LOAD SHED EVENT PERHAPS IN THE, UM, WHOLE COLLECTIC SYSTEM.
UM, PROBABLY IN THE LAST, UH, 50, 60 YEARS OR MORE.
SO IN THIS PARTICULAR SLIDE, ALL LOAD SHEDS ARE SHOWN IN RED, AND I'LL JUST WALK YOU THROUGH THEM.
UH, AT BEGINNING OF THE TIMEFRAME, 1000 MEGAWATTS OF LOAD WAS SHED AT ONE 20 RAY, AND OBVIOUSLY AUSTIN ENERGY HAD OUR SHARE OF THAT 1000 NEGAWATTS 25 MINUTES LATER.
UH, AS THE FREQUENCY BEGAN, IT BEGAN TO DEGRADE ANOTHER ALISON WATTS WAS SHED WALKING THAT FORWARD FIVE MINUTES LATER, AS THE FREQUENCY WAS DANGEROUSLY LOW, UH, TWO EMINENT COLLAPSE ON AN INCREMENTAL 3000 MEGAWATTS WAS SHED FOUR MINUTES AFTER THAT, AS YOU CAN SEE THE LE THE, THE AREA IN THE RED, UH, AN INCREMENTAL, UH, 3,500 MEGAWATTS WAS SHED AND STILL, UH, THAT WAS IN THE DANGEROUS TERRITORY TERRITORY.
UH, AND EVEN AS THE FREQUENCY RESTORED, UM, TO AN INCREMENTAL 2000 MEGAWATTS, BUT SHE HAD SEVEN MINUTES LATER, AN AUSTIN ENERGY SHARE OF THE, OF THESE LOAD SHEDS
[00:30:01]
IS 3.71%, IF YOU WANT TO DO THE MATH, BUT IT DOES REPRESENT A SIGNIFICANT PORTION OF OUR, UM, CUSTOMERS THAT WERE QUICK QUESTION AT WHAT POINT TO THE, UH, UNDER FREQUENCY LOAD RELAYS TRIP, IF THE MINIMUM WAS 5,900, WE'RE GOING TO WAIT UNTIL THE END OF THE PRESENTATION FOR ALL QUESTIONS, IF THAT'S OKAY.I AM IN TOWARD THE, THE END OF, UH, GETTING CLOSE TO THE END, BUT, UH, THE SIGNIFICANCE OF THAT 57.3 HERTZ IS THAT IS RIGHT AT THE THRESHOLD WHERE SOME OF THE
BUT IT'S IMPORTANT TO SAY THAT AUSTIN ENERGY AND ALL THE OTHER TRANSMISSION AND DISTRIBUTION PROVIDERS HAD TO HAVE FAST COMPLIANCE TO ARREST THIS DECAYING FREQUENCY AND OUR FAST COMPLIANCE WHILE IT'S AN UNENVIABLE TASK.
IT'S ONE THAT OUR OPERATIONS TEAM IS OBLIGATED TO PERFORM AT THE DIRECTION OF HER CAR.
UM, THIS SLIDE SPEAKS TO HOW DID AUSTIN ENERGY'S GENERATION PORTFOLIO PERFORM.
AND OBVIOUSLY THERE WERE SEVERAL QUESTIONS ABOUT THAT IN THE CUSTOMER, UM, CITIZEN PORTION TODAY, THIS SLIDE ATTEMPTS TO SPEAK TO THEM IN GLOBAL TERMS, THE BLACK MIND ESSENTIALLY REPRESENTS AUSTIN ENERGY'S LOAD AND WHERE YOU SEE THE RED WRITING AND RED ARROW THAT REPRESENTS WHERE THE, UH, LOAD SHED EVENT, UH, OCCURRED.
AUSTIN ENERGY'S GENERATION EXCEEDED LOADED.
IN MOST INSTANCES, AS YOU CAN SEE WITH THE LOAD, AGAIN, BEING SHOWN IN BLACK, UH, AUSTIN ENERGY'S RESOURCES WERE MADE AVAILABLE TO ERCOT FOR PROTOCOL, FOR MARKET DESIGN FOR OUR CURRENT MARKET DESIGN.
UH, I WILL EMPHASIZE THAT AUSTIN ENERGY'S RENEWABLE PORTFOLIO OR RENEWABLE RESOURCES, WHETHER THAT BE WINDOWS, SOLAR WERE MEASURABLE AND IMPACTFUL IN ASSISTING ERCOT NEED LOW DEMAND, BUT WHILE ALSO ASSISTING AUSTIN ENERGY REDUCE AND MITIGATIONS, IT'S A PRICE VOLATILITY TO THE ERCOT MARKET.
BUT SIMILARLY, AUSTIN ENERGY'S GENERATION RESOURCES ASSOCIATED WITH CLEAR NATURAL GAS AND COAL WERE ALSO MEASURABLE AND MEANINGFUL, AND ALSO HELPED REDUCE OUR VULNERABILITY TO ERCOT PRICE VOLATILITY.
AND I WOULD ALSO GO ON TO SAY WHERE AUSTIN ENERGY DID HAVE GENERATION DIFFICULTIES, AUSTIN ENERGY PER, UH, POWER SUPPLY PERSONNEL WERE WARRANTYING AND SEQUESTER, AND THEY RESTORED THOSE GENERATION FACILITIES, RELATIVELY PROMPT FASHION HELPING, UH, THE OVERALL ERCOT.
AND THEN CAN I GO TO THE NEXT TWO SLIDES AS WE APPROACH THE FINAL TWO SLIDES THAT I HAVE? UM, SO WHAT'S AHEAD.
UH, WHAT ARE OUR IMPROVEMENT OPPORTUNITIES? ONE OF THE MOST GRANULAR AND MOST VISIBLE IS OUR OUTAGE MAP.
WHILE THE OUTAGE MAP DID QUANTITATIVELY PROVIDE TOTAL OUTAGES, TOTAL INCIDENTS, TOTAL CUSTOMERS OUTAGE.
UM, WE, WE CLEARLY HAD TO DO A BETTER JOB IN IS GRANULAR GRAPH PERFORMANCE, SUCH THAT CUSTOMERS, ALL CUSTOMERS CAN HAVE THE ABILITY TO DRILL DOWN AND SEE THEIR SERVICE ENGAGE THEM IN A BETTER UNDERSTANDING OF THE, UH, OF THE OUTAGE, UH, MOVING TO THE NEXT SLIDE AGAIN, AFTER ACTION REVIEW, WHAT ARE SOME OF THE THINGS WE'RE LOOKING AT? ONE OF THE MOST IMPORTANT THINGS IS WE'RE REACHING OUT TO EXTERNAL ENTITIES, FOR INSTANCE, EMERY, WHICH STANDS FOR ELECTRIC POWER RESEARCH INSTITUTE.
WE THINK THAT THEY CAN BRING VALUE AS AN EXTERNAL PARTY PARTY.
THEY HAVE A LONG INDUSTRY RESEARCH, UM, HISTORY, UH, AND OUR ACTION AND OUR, OUR AFTER ACTION REVIEW, UH, EVERY IS ONE OF THE LEADING ELECTRIC POWER RESEARCH FIRMS IN OUR INDUSTRY.
UH, OTHER EXAMPLES, UH, THAT LAUREN OUR REVIEW IS POTENTIALLY LOOKING AT SMARTER OR SMART, UH, DISTRIBUTION SYSTEM TECHNOLOGY THAT COULD BE INHERENTLY HELP US IN SOME OF OUR DISTRIBUTION SWITCHING, BUT IN SUMMARY, UH, CLEARLY WE HAVE CONTINUED WORK TO DO IN THE POST EVALUATION STAGE, AND WE FULLY UNDERSTAND THAT OUR RESPONSIBILITY WHO'S WORKING WITH ALL OUR STAKEHOLDERS, YOURSELVES, POLICYMAKERS, CUSTOMERS, AND INDUSTRY REGULATION, INDUSTRY, OR REGULATORS.
UH, AND WITH THAT CONCLUDING REMARK, I WOULD LIKE TO TURN IT OVER TO OUR COMMUNICATIONS TEAM TO CONTINUE THE AUSTIN ENERGY.
UH, AND THIS MARISA MONROY WILL SPEAK TO OUR EXTERNAL COMMUNICATIONS IF THAT'S OKAY.
CHAIR, UH, MR. JACKSON, IF YOU DON'T MIND, ACTUALLY, WE WE'D LIKE TO TAKE AN OPPORTUNITY TO ASK YOU SPECIFIC QUESTIONS NOW, BEFORE WE TURN
[00:35:01]
IT OVER TO MS. MONROE WITH MONROY.EXCUSE ME, IF THAT'S ALL RIGHT.
AND SO I KNOW DAVE, YOU'VE GOT A QUESTION, SO COMMISSIONER TUTTLE, WHY DON'T YOU GO AHEAD AND START AND THEN WE'LL SWITCH OVER TO, UH, QAEDA AND THEN WE'LL GO BACK AND FORTH.
SO, YEAH, WE'RE GOING TO NEED SOME FOLLOW UP IN SUBSEQUENT MEETINGS.
UM, SO I THOUGHT I HEARD JACKIE TALK ABOUT 25% OF THE CIRCUITS WORK ON UNDER FREQUENCY RELAYS.
WELL, WHAT WOULD, WHAT WOULD HAVE TRIPPED THEM OFF? WHAT'S THE FREQUENCY FOR WHAT DURATION AND WHICH WOULD HAVE CAUSED A FURTHER CASCADING WITH THE HOSE, AND THEN OTHER THINGS LIKE, UM, KNOW THE IMPACT TO THE, THE PSA.
I KNOW THERE'S A LOT OF FINANCIAL THAT STILL HAS TO BE SETTLED.
WELL, LET ME TRY TO END THE ANSWER AT A VERY HIGH LEVEL, THEN I'LL CALL ON OUR VICE PRESIDENT POWER DUCK PRODUCTION, MR. PAT, SWEENEY TO TALK ABOUT, UM, THE UNDER FREQUENCY, UH, TRIP POINTS, UH, IMPACT TO THE POWER SUPPLY OR ESA, IF YOU WILL, IT'S STILL UP IN THE AIR JUST BECAUSE ERCOT IS GOING THROUGH SETTLEMENTS.
IT'S TOO EARLY FOR US TO GIVE A DEFINITE NUMBER, BECAUSE WE JUST DON'T KNOW.
THAT'S THE ANSWER AT A HIGH LEVEL.
UM, PAT, CAN YOU SPEAK TO, UH, THE UNDER FREQUENCY OR TOM TO ANSWER YOUR QUESTION? THE UNDER FREQUENCY RELATED TRIP NOMINALLY, RIGHT AT ABOUT 59, THREE, MAYBE A HERE I CAN LOOK UP THE EXACT NUMBER, BUT IF IT SUSTAINS THEREFORE THE TIME YOUR GENERATORS TO PRESERVE, UH, AND PREVENT THEM FROM SELF DAMAGE, UM, TO PREVENT, YOU KNOW, DESTRUCTION, THEY WILL TRIP OFFLINE AT THAT POINT.
SO GETTING BACK TO THAT, THE QUESTION I HAD ACTUALLY WAS, WHEN DO YOU THINK YOU'LL HAVE AN ANSWER TO THE PSA, UNDERSTAND THAT THERE'S SETTLEMENT GOING ON AND DEBATES ABOUT ANCILLARY SERVICES, CLAW BACK, ET CETERA, BUT HOW LONG DO YOU THINK THE MAXIMUM TIME IS BEFORE WE'LL HAVE THAT ALL SETTLED? UM, MR. MARK, NEBRASKA, AND OUR CHIEF FINANCE OFFICER, ARE YOU ON THE LINE? UM, LET ME GIVE YOU THE ANSWER THEN THE ANSWER, IT DEPENDS ON WHAT ERCOT DOES.
THEY'RE GOING THROUGH VARIOUS RESETTLEMENTS.
IT ISN'T DETERMINED THE STATE LEGISLATURE IS INVOLVED.
THEY'RE LOOKING AT VARIOUS SCENARIOS AND HOW THAT WOULD OR LOOK AT THAT IS BEYOND OUR PURVIEW AND OUR CONTROL.
BUT WHEN WE KNOW WE'LL BE GLAD TO LET YOU KNOW, I WISH I COULD BE MORE SPECIFIC.
THIS IS JACKIE SERGEANT GENERAL MANAGER, AND WE ARE LOOKING AT THAT, BUT RIGHT NOW THERE ARE A NUMBER OF THINGS THAT, UM, ARE CREATING A LOT OF UNCERTAINTY AROUND THAT.
UM, JUST TODAY, UH, THERE WAS A LETTER FROM THE LIEUTENANT GOVERNOR, UM, AND THERE HAS BEEN DISCUSSION ABOUT RESETTLEMENTS REPRICING, AND THAT WOULD IMPACT US AS IT STANDS.
IF WE WERE TO, YOU KNOW, EVERYTHING SETTLES THE WAY WE RESPONDED AND THE WAY OUR UNITS WERE, UH, REQUESTED TO RESPOND DURING THE ENERGY EMERGENCY AND THE PRICE SIGNALS THAT WERE GIVEN, UM, THERE WOULD BE A BENEFIT TO AUSTIN ENERGY CUSTOMERS, AND THAT IS, UM, A BENEFIT THAT FLOWS THROUGH OUR POWER SUPPLY ADJUSTMENT.
SO IN THE POWER SUPPLY ADJUSTMENT, UM, ALL COSTS ARE, ARE DONE AT COSTS.
THERE'S NO GENERAL FUND TRANSFERS ASSOCIATED WITH ANY OF THAT.
AND IF THERE IS A NET BENEFIT, IT FLOWS BACK TO CUSTOMERS.
IF WE'VE UNDER RECOVERED, THEN WE INCREASE THE PSA TO, TO REPLACE THAT, UM, MONIES THAT WE NEED TO MAINTAIN THAT AT A FLAT BALANCE, UM, BECAUSE THE POWER SUPPLY ADJUSTMENT IS SIMPLY THAT A PASTOR, UM, AND WHEN AN, OUR, OUR CHIEF FINANCIAL OFFICER, MR. DOMBROWSKI, HE CAN ADDRESS THIS MORE FULLY.
WHAT I'M CONCERNED WITH IS IT LOOKS LIKE WE WERE LONG, GOOD JOB ON THAT IS JUST, WHAT ABOUT THE LISTS FROM BROWSE, THOSE BANKRUPTCIES AND OTHER THINGS THAT COULD BE AN UPLIFT AND HOW HAS THAT SETTLED OUT? AND I KNOW THE SETTLEMENT MIGHT BE, SAY 90 DAYS, BUT DO YOU THINK IT'LL TAKE THAT LONG TO SETTLE OUT AND THEN THERE'S OTHER DENTON LAWSUITS AND GRITTY SITUATIONS.
YEAH, THERE'S JUST SO MANY MOVING PARTS.
MR. COMMISSIONER TOLD THAT, YOU KNOW, WE NEED TO UNDERSTAND WHERE THAT'S GOING.
AND CERTAINLY IF PEOPLE DECIDE TO
[00:40:01]
GO BACK AND, UM, IF THERE'S DECISIONS OR DIRECTIONS THAT ARE MADE TO DO REPRICING, UM, THAT COULD BE VERY, VERY CONCERNING AND PROBLEMATIC.SO WE NEED TO FIND OUT WHERE ALL OF THOSE PLANES LAND, AND THEN WE CAN PROVIDE A BETTER PICTURE.
AND CAN I FOLLOW UP, OTHER MARKETS HAVE GONE THROUGH SIMILAR EXCURSIONS, THE OTHER 365 DAYS WITH RESETTLEMENTS BACK AND FORTH.
UM, HOPEFULLY THIS WILL NOT BE THE CASE HERE, UH, BUT THERE ARE A LOT OF PARTIES INVOLVED IN THIS LIES IN OR CONSEQUENCE.
IT IS NOT IN, IT'S NOT A UNILATERAL AUSTIN ENERGY, UH, DECISION.
DO YOU WANT TO RMC TAKE A, TAKE A SHOT? HOW YOU ABOUT TO THINK YOU'RE ON MUTE.
AND SO YOU, YOU THERE, I THINK, DID YOU HAVE A QUESTION OR NO? OKAY.
DOES ANYBODY ELSE, UH, HAVE A QUESTION OR IF NOT, I DO HAVE A QUESTION.
UM, SO I'VE GOT A QUESTION IT'S KIND OF, UM, MAYBE TWOFOLD MAYBE FOR JACK OR SYDNEY.
AND, UH, UH, ONE QUESTION IS, UH, WHEN, FOR EXAMPLE, ERIC HALL CALLS, UH, AUSTIN ENERGY AND SAYS, UH, I WANT YOU TO DO THE LOAD, SHARE THAT THE THOUSAND OR SO, UH, IS THERE A DISCUSSION BETWEEN AUSTIN ENERGY AND, AND AIR-CON SAID, WELL, IF WE DO THIS, THIS IS WHAT'S GOING TO HAPPEN.
OR WHEN L ERCOT SAYS, OKAY, I WANT YOU TO SHARE THIS MUCH LOAD.
THE OTHER QUESTION, UH, I READ SOME IN THE PAPER ABOUT, UM, SOME OF THE INDUSTRIES THAT, UH, ALSO ENERGY AS TO, TO, UH, SHUT DOWN.
UM, IS THERE ANY AGREEMENT BETWEEN THOSE INDUSTRIES AND AUSTIN ENERGY THAT, UM, YOU KNOW, AT A CERTAIN POINT, UH, THEY CAN SHUT DOWN OR, UM, IF WE HAD SHUT DOWN SOME OF THOSE INDUSTRIES, LIKE, FOR EXAMPLE, SAMSUNG, UM, YOU KNOW, A FEW DAYS EARLIER, UM, WOULD THAT HELP ANY? SURE.
AND I'M SURE JACKIE MIGHT HAVE SOME FOLLOW-UP COMMENTS.
UM, WHEN ERCOT GIVES A LOAD SHED DIRECTIVE, IT IS NOT A NEGOTIATION.
WE HAVE A COMPLIANCE OBLIGATION FROM THE GRID OPERATOR.
THE GRID OPERATOR IS THE AIRPLANE CONTROLLER, THE AIR FLIGHT CONTROLLER, IF YOU WILL, IT IS STEEPED IN NERC POLICY INDUSTRY POLICY THAT WE HAVE TO EXECUTE THEIR DIRECTIVES.
SO THERE IS NOT A NEGOTIATION.
IT IS PROBABLY ONLY IN A NO NEGOTIATION IF WE'RE HAVING TROUBLES DOING IT CAUSE WE HAVE SYSTEM PROBLEMS OR SOMETHING EXTREME.
BUT OTHER THAN THAT, IT'S, IT IS A COMPLIANCE DIRECTOR.
AND I WILL GO ON TO SAY THAT MUCH OF THE POST EVENT ANALYSIS WILL BE ABOUT HOW EFFECTIVELY AUSTIN ENERGY AND OTHER TRANSMISSION PROVIDERS AND OTHER DISTRIBUTION PROVIDERS EXECUTED THOSE LOAD SHED DIRECTIVES.
UM, AND THAT IS GOING TO BE A, A SIGNIFICANT, UH, POST WITH EVENT REVIEW, UH, AND RE IN REGARD TO INDUSTRY, FOR INSTANCE, SOME OF THESE BIG INDUSTRIALS.
ONE OF THE THINGS I DIDN'T MENTION IS WORKING WITH SOME OF THESE BIG INDUSTRIALS.
UM, THEY, THEIR ABILITY TO COME OFFLINE IS NOT NECESSARILY IMMEDIATE.
AS YOU SAW A LOAD SHED DIRECTIVE, THE THOUSAND MEGAWATTS AND OUR SHARE LOAD SET TO RECORD A FEW MINUTES LATER, 3,500 MEGAWATTS IN OUR SHERIFFS 3.17%.
WE HAD STARTED WORKING WITH THESE BIG INDUSTRIAL CUSTOMERS.
WELL IN ADVANCE, ONCE WE SAW WHERE THIS WAS GOING TO GET THEM, THEIR PERSONNEL IN A SAFE POSITION TO ENSURE WE DON'T HAVE ANY ENVIRONMENTAL COMPROMISES, UH, TO GET THEM SO THAT THEY COULD SHUT DOWN THEIR PROCESSES AS BEST THEY CAN.
AND I WILL SAY OUR KEY ACCOUNTS PERSONNEL, AND SOME OF THE OTHER KEY PEOPLE INSIDE OF AUSTIN ENERGY WORKING WITH TO GET THEM OFFLINE IN A SAFE MANNER, UH, WAS A SIGNIFICANT ACCOMPLISHMENT.
AND I, AND JACKIE, I'M SURE YOU MAY HAVE SOME COMMENTS.
NO, I THINK YOU SHARED THAT VERY WELL.
WE REACHED OUT, UM, TO THOSE CUSTOMERS AND, UH, WE REALLY APPRECIATE THE COLLABORATION AND PARTNERSHIP THAT WE HAVE WITH THEM.
UH, THEY DO HAVE CERTAIN PROCESSES THAT DO REQUIRE LIFE SAFETY MEASURES.
[00:45:01]
UH, THEY NEEDED TIME TO BE ABLE TO SHUT DOWN WHEN THEIR SYSTEMS, UH, LIKE, LIKE DEPUTY GENERAL MANAGER, UH, JACKSON SAID IN A SAFE AND ENVIRONMENTALLY SOUND MANNER.UH, THAT'S ALL, UH, KIVA FROM MR. AND GLORY.
I'LL TURN, I'LL TURN IT TO, UH, CONSTRUCT TRUSSELL, UH, MR. JACKSON, UM, I APPRECIATE YOUR PRESENTATION.
I NOTICED THAT IT'S THE SAME PRESENTATION YOU MADE TO THE JOINT COUNCIL LAST WEEK.
HAVE YOU LEARNED ANYTHING NEW THAT YOU CAN REPORT? UH, SINCE THAT PRESENTATION? I DON'T KNOW.
UM, IF WE LEARNED ANYTHING NEW, BUT AS I MENTIONED, UH, FOCUS WANTING CONFIRMATION, FEDERAL ENERGY, REGULATORY COMMISSION POINT BEING IS THERE'S A LOT OF FEDERAL AND STATE AGENCIES LOOKING AT HOW W FORMS. I MENTIONED THE LOAD SHED DIRECTORS, AND WE EXECUTE THEM.
HOW FAST DID WE EXECUTE THEM? SO THERE IS A LOT OF DATA FOLLOW-UP, I THINK THAT IS, UH, A SIGNIFICANT LEARNING, UM, PORTION OF THIS AS WELL.
YEAH, I KNOW THAT ERCOT DIRECTS, UH, EACH TRANSMISSION DISTRIBUTION OWNERS.
WHAT PERCENTAGE OF THE TOTAL LOAD SHED YOU HAVE YOU'RE RESPONSIBLE FOR? AND FOR AUSTIN ENERGY, IT'S 3.7, 1% OF WHATEVER THE LOAD SHED ORDERED IS.
SO ON YOUR, ON YOUR CHART, IT STARTED WITH A THOUSAND MEGAWATTS AND AUSTIN HAD TO SHED 3.71% OF THAT AT, UH, WHATEVER TIME THAT OCCURRED AT 1:23 AM.
AND IT'S AN ONGOING, WHAT WAS YOUR, UH, WHAT WAS A E'S PROJECTED, UH, LOAD, UH, FOR, FOR, UM, FEBRUARY 15TH? I WISH I HAD THAT, UH, THAT NUMBER IN FRONT OF ME.
AND I THINK I DUG AROUND HERE.
I THINK, UM, OUR GENERAL MANAGER, UH, JACKIE HAD MENTIONED THAT WE WERE PROBABLY HEADED TOWARDS A PEAK MODE DAY FOR THE WINTER ABSENTEES, UH, LOAD SHED EVENTS.
UM, AND SO I HOPE THAT GIVES YOU SOME TYPE OF CONTEXT.
OUR TOTAL BULLSHIT WAS PROBABLY, I KNOW IT WAS GREATER THAN 700 MEGAWATTS.
OUR SHARE, IF THAT HELPS, IF YOU DID THE MATH, UM, YOU COULD, YOU COULD, UH, IF YOU'RE AVAILABLE ERICA, I KNOW WE WERE HAVING TECHNICAL DIFFICULTIES.
SHE COULD, OUR VICE PRESIDENT OF ENERGY MARKET AND OPERATIONS.
ARE YOU THERE, ERIC? YES, I AM.
THANK YOU VERY MUCH FOR HAVING ME.
UM, SO OUR, UH, LOAD PROJECTIONS GOING INTO THE STORM WERE ACTUALLY QUITE HIGH.
UM, WE SAW THEM OVER 3000 MEGAWATTS AND, UM, ONE OF THE THINGS THAT WE, UM, KNOW WHENEVER WE'RE IN VERY, VERY EXTREME SITUATIONS IS THAT FORECAST OF A HIGHER DEGREE OF, UH, ERROR WHENEVER YOU'RE IN EXTREME EVENTS.
UH, SO, UH, WE DID HAVE A FORECAST OVER 3000.
WE, UH, OUR PEAK IN THE, UH, WINTER, UH, IT'S IN THE 2,600 RANGE.
UM, SO WE SAW QUITE A LARGE DELTA THERE.
UM, SO I'M ALSO VERY INTERESTED IN THE, UM, CRITICAL CIRCUITS, THE CRITICAL THEATERS THAT YOU HAVE.
I BELIEVE THAT, UH, UH, GENERAL MANAGER SERGEANT HAD TESTIFIED.
I, I DON'T KNOW IF IT WAS AT THE SENATE OR WHERE, BUT THAT, UH, A HAS 400, HUNDRED AND 10 THEATERS AND 109 OF THEM ARE CONSIDERED CRITICAL AND 25% ARE ON UNDER FREQUENCY REALIZE, DOES THAT SOUND RIGHT TO YOU? OKAY.
UM, TOM, UM, MR. PURE FOR OUR VP OF ELECTRIC SYSTEM ENGINEERING.
TOM, CAN YOU ADDRESS THAT PLEASE? RIGHT.
I THINK THE NUMBERS THAT ARE BEING READ OFF SOUNDED LIKE, UH, WHAT WE PUBLISHED WITH FOYER AND 10 FEEDERS, TOTAL, UM, AND ROUGHLY 25% TOTAL, UM, UNDER FREQUENCY AND THEN MAYBE ANOTHER 25% OR SO FOR, UM, AVAILABLE DEAD FEEDERS, 25% FOR WHAT THERE'S, UH, THERE'S 25, UH, SERGEANT CAMMIE THERE'S 25%.
THE 410 IS ROUGHLY 25% THAT ARE UNDER FREQUENCY FEEDERS.
AND THEN THERE'S 25% THAT ARE LOAD SHED FEEDERS.
[00:50:01]
OKAY.AND SO IS IT CORRECT THAT BY MY CALCULATION, YOU HAVE AT LEAST 52% OF YOUR FADERS THAT YOU CAN'T TAKE OUT GOING INTO A LOAD SHED EVENT.
SO YOU'RE LEFT WITH LESS THAN 50% OF YOUR CIRCUITS THAT ARE AVAILABLE FOR LARGE DEBT.
THE RE THE REMAINDER ARE CRITICAL, CRITICAL CODE, AND WE DON'T HAVE A WAY TO SHED THE UNDERGROUND NETWORK RIGHT AT THE START DOWNTOWN.
SO WHAT'S LEFT THAT CAN BE SHARED WHAT PERCENTAGE OF THE A E CIRCUITS OR THEATERS CAN BE SHIPPED? WELL, I'D DO THE ONES THAT CAN BE SHATTERED ON THE LIST RIGHT NOW.
WE'RE GOING TO HAVE TO LOOK REAL HARD AT THE MAY SAY 50 ISH PERCENT AND SEE IF THERE'S OTHER CANDIDATES THAT WE CAN FIGURE OUT WAYS TO CONFIGURE AND SHED AS WELL.
I, I GUESS, AND I, THIS IS A LONGER TERM CONVERSATION, BUT I'M VERY INTERESTED IN THIS BECAUSE IT SEEMS TO ME THAT, UM, WE NEED TO, UH, AS A POLICY MATTER, LOOK AGAIN, AND DECIDE HOW CIRCUITS GET PUT ON THE CRITICAL LIST, UH, HOW THEY COULD PERHAPS BE, UM, SPLIT OFF SO THAT YOU DON'T TAKE THE, EVERYTHING, ALL THE LOAD ON A CIRCUIT, UM, OFF THE PO POTENTIAL LOAD SHED LIST.
UM, AND I JUST WOULD ALSO LIKE TO KNOW WHEN WAS, WHEN, WHEN IS THE CRITICAL LOAD SHED, UH, LIST REVIEWED, WHO REVIEWS IT, WHO DETERMINES WHAT GOES ON, WHICH CIRCUITS CAN'T GO ON, ET CETERA.
UH, BECAUSE I THINK THAT, THAT, I THINK THAT THIS IS ALSO AN AREA THAT NEEDS EXTENSIVE, UH, COMMUNICATIONS WITH THE CITIZENS OF AUSTIN TO MAKE IT CLEAR.
THAT'LL BE PART OF THE AFTER ACTION REVIEW, UM, TO, TO GO THROUGH EXACTLY THAT.
UM, I KNOW SOMEBODY YOU HAD YOUR HAND UP, DO YOU STILL HAVE A QUESTION? I HAVE A SERIES OF QUESTIONS, AND FIRST I ALSO WANT TO ADD MY APPRECIATION AUSTIN ENERGY STAFF, WHILE THERE'S A LOT OF CRITICISM ABOUT THE SIZE OF THE OUTAGE AND, UH, INABILITY TO ROTATE BLACKOUTS.
UM, THAT WAS VERY FRUSTRATING AND UNDERSTANDABLY, SO I REALLY WANT TO GIVE YOU CREDIT.
YOU DESERVE FOR WORKING EXTREMELY HARD AND SMART DO THIS.
AND I THINK MANY OF THE MEMBERS OF THIS COMMISSION DO GOING TO THE QUESTION OF THE LOAD SHED EVENT IN THE CHART, UH, PAGE NINE, WHERE YOU HAD THE LITTLE HILLS AND GRAPHS AND SHOWED WHAT CAME OFF.
ONE OF THE THINGS THAT I NOTED, UM, WAS THAT YOU COULDN'T MENTION WHICH PLANTS WENT OFFLINE.
IT DOESN'T TAKE A ROCKET SCIENCE TO FIGURE OUT WHAT SEEMED TO HAVE HAPPENED HERE DURING THE FREEZE.
YOU HAD DECLINE AND NUCLEAR POWER OF ABOUT HALF FROM FOUR MEGAWATTS DOWN TO 200 IN COAL FROM A THOUSAND DOWN TO 800, INDICATING THAT ROUGHLY A QUARTER OF YOUR COAL CAPACITY HAD FROZEN, MEANING THAT ONE OF TWO SMALLER UNITS MUST HAVE GONE OFFLINE.
AND IN GAS, YOU WERE GENERATING ABOUT 2000 MEGAWATTS.
IT DROPPED PRETTY QUICKLY DOWN TO 1500, AND THEN EVENTUALLY DOWN TO ABOUT 1350 SHOWING A LOAD SHED OF SOMEWHERE BETWEEN 500 AND 650, UH, T PAUL'S FAVORITE DISPATCHABLE RESOURCE.
UM, SO WHY ARE THE BMS, THE ONES THAT WE RELY UPON TO BE THE BACKBONE OF OUR SYSTEM, THE INFALLIBLE PLANTS FAILING.
LET ME JUST CLARIFY A COUPLE OF THINGS.
UNFORTUNATELY, THAT LOW GRAPH THAT YOU'RE SHOWING SHOWS KIND OF AVAILABILITY, WHERE THEY WERE DISPATCHED AT DEPENDING ON DIFFERENT POINTS IN THE GRAPH.
SO WHILE YOU'RE DRAWING WHAT I WOULD CALL A STUDENT OBSERVATIONS, UM, I WOULD CAUTION YOU IN MAKING THOSE DECISIONS WHERE THOSE DETERMINATIONS IS FROM, BECAUSE THERE ARE TIMES WHEN THE PLANT WERE, WAS DISPATCHED, ESPECIALLY PRIOR TO THE, UH, LOAD SHED EVENTS WAS DISPATCHED DOWN BY ERCOT, EVEN THOUGH IT WAS AVAILABLE, BUBBLE WILL FIRE.
UH, I WILL ALSO CAUTION THAT, UNFORTUNATELY IN A COMPETITIVE MARKET, LIKE ERCOT, THE GRANULAR DETAILS OF WHERE
[00:55:01]
POWER PLANTS WERE AT WHAT PRICE THEY WERE OFFERING AT, UH, HOW THEY CLEARED AGAINST THE LMP IS VERY PROPRIETARY AND CONSIDERED, UM, UH, COMPETITIVE INFORMATION.SO THUS THE, SOME OF THE DELAYS IN GETTING THIS INFORMATION OUT, I WOULD ALSO SAY THAT ERCOT IS PUBLISHING SOME OF THAT DETAIL, UH, AND THAT MIGHT BE A RESOURCE FOR YOU, AS I UNDERSTAND SOME OF THAT INFORMATION JUST, JUST, UH, CAME OUT.
UM, I DON'T KNOW IF THAT ADDRESSES YOUR QUESTION.
SO I GUESS THE FUNDAMENTAL QUESTION IS, DID DISPATCHABILITY, UH, IS DISPATCHABILITY THAT BIG, UH, BOOGEYMAN THAT T PAUL CONTINUES TO SAY IT IS, OR DID WE HAVE WEATHERIZATION PROBLEMS THAT CAUSED US TO HAVE SOME PLANTS THAT WE'D NORMALLY WOULD UTILIZE BE UNAVAILABLE? YOU KNOW, I LIKE TO GIVE THE HIGH LEVEL VIEW IS ESSENTIALLY ALL OUR PLANTS HAD SOME COMPROMISE.
UM, THEY WERE ALL RETURNED TO SERVICE, OR I WOULD CONSIDER, UH, FAIRLY PROMPTLY.
NOW I'M NOT TELLING YOU WHEN AND HOW FAST, UM, BUT THEY WERE TURNED AROUND.
AND I THINK THAT'S A ATTRIBUTION OF OUR POWER PLANT PERSONNEL THAT WERE ABLE TO REMEDY THAT, UM, AGAIN, VERY HIGH LEVEL COMMENTS AT THIS TIME.
AND I'M SURE AFTER THE PRICE SENSITIVITY WEARS OFF CAN GET INTO MUCH MORE A GRANULAR RESPONSE.
UH, BUT PAT, OUR VP OF POWER PRODUCTION NAME WOULD PROVIDE A LITTLE BIT MORE DETAIL OR YOU BROUGHT OVER PAT, IF NOT ERICA, SHE CAN, CAN BRING SOME MORE, UH, COMMISSIONER SMITTY.
UM, IF YOU NOTICE ON THE, YOU SEE A STEP DOWN IN THE COAL, BUT THERE IS NO CHANGE BECAUSE YOU SEE THAT REALLY ALL THAT'S HAPPENED IS THAT THERE'S BEEN A SHIFT DOWN BECAUSE OF THE NUCLEAR.
SO THERE WAS NO CHANGE ON THE 15TH, IN THE AMOUNT OF COAL THAT WAS BEING GENERATED.
THERE IS A SLIGHT DIP ON THE 17TH WHERE WE HAD A SMALL DURATION AT THAT FACILITY BECAUSE THE COAL SUPPLIES WERE FROZEN AND THEY WERE OUT THERE WITH HEATERS, JUST TRYING TO WARM THAT COAL BACK UP, BUT THERE WAS NO, UM, UH, UH, UH, FAILURE OR, UH, UH, THE COAL, THE COAL PLANT WAS, DID NOT STOP RUNNING.
UM, SO, SO I WANTED TO CLARIFY THAT ON THE GRAPH.
THANK YOU FOR YOUR CORRECTION.
UM, AND THEN, UH, I APOLOGIZE, I WAS TRYING TO TRACK THE OTHER QUESTIONS.
WAS THERE ANOTHER ONE THAT YOU WERE, UH, ASKING ABOUT AND THEN, SO THE OTHER, UH, BIGGER QUESTION.
THE OTHER QUESTION THAT I HAD, UM, THE FOLLOW UP ON KAY'S QUESTION, UM, HAD TO DO WITH CIRCUITS.
UH, WE'VE HEARD MUCH ABOUT THE SORT OF CRITICAL CIRCUITS AND, UH, ONE OF YOUR STAFF MOMENTS AGO, UH, RAISED A QUESTION, UH, WHEN, WHEN WE WERE LOOKING AT THE PICTURES OF THE STORM, IT APPEARED TO MANY OF US THAT LARGE SWATHS OF DOWNTOWN, THE CAPITOL COMPLEX AND UT REMAINED LIT WHILE THE PEOPLE ON THE EAST SIDE WERE FREEZING.
AND PART OF THE QUESTION THAT I HAVE IS THAT WAS, IS THAT DUE TO AGE AND INFLEXIBLE CIRCUITRY, WHAT PERCENTAGE OF ALL THOSE CIRCUITS IN DOWNTOWN REALLY HAVE CRITICAL STRUCTURE IN THEM LIKE SERVER FARMS OR COMMAND CENTERS OR EXPERIMENTS THAT WILL GO AWRY AND KILLED ALL AT UT, SHOULD THE POWER GO OFF, OR IS IT JUST BECAUSE SOMEWHERE ALONG TIME AGO, WE WIRED THEM ALL TOGETHER.
TOM, COULD YOU ADDRESS THAT? YEAH, THIS IS TOM PIERPOINT, UH, VICE PRESIDENT OF ENGINEERING, THE, UM, THE DOWNTOWN NETWORK, UM, GRID.
THERE'S A NUMBER OF GRIDS THAT HAVE, UH, UH, CRITICAL INFRASTRUCTURE, CRITICAL LOAD ON 'EM.
UM, IN GENERAL, I'LL SAY A LARGE CITY GRID.
UM, AND WHAT AUSTIN HAS IS, UM, A COMMON IN THE U S UM, IT IT'S INCREDIBLY DIFFICULT UNDER THE WEATHER SITUATIONS THAT WE EXPERIENCED TO DROP AN ENTIRE GRID AND TO BE ABLE TO BRING IT BACK UP AGAIN.
UM, WE, WE WOULD HAVE TO BRING BACK UP THE GRID WOULD HAVE INVOLVED, UM, GOING TO THAT JUST ABOUT EVERY SINGLE BUILDING, SWITCHING THEM OUT AND BRINGING THE GRID BACKUP, AND THEN TRY TO SWITCH AND BUILDINGS.
SO IT'S, UH, DEFINITELY SOMETHING WE CAN LOOK AT AFTER ACTION TO SEE IF THERE'S, UM, YOU KNOW, PERHAPS SOME THINGS WE CAN DO ON THE GRID.
AND THAT MIGHT INCLUDE, UM, YOU KNOW, UH, DEMAND SIDE MANAGEMENT OR CONTAIN OUR CURTAILMENTS WITHIN THE BUILDINGS THEMSELVES WITHOUT DROPPING THE GRID.
SO THERE'S A NUMBER OF THINGS WE CAN
[01:00:01]
LOOK AT, UM, AS A FOLLOW-UP.AND LASTLY, UM, ONE OF THE THINGS THAT AUSTIN TOUTS IS THAT WE HAVE A SUBSTANTIAL AMOUNT OF, UM, DISPATCHABLE LOAD.
AND THEN WE ALSO HAVE MICRO GRIDS OR SMALL POWER PLANTS, UH, LIKE THE ROBBINS, UH, CHILLING OPERATION IN DOWNTOWN AUSTIN.
DID THAT, THOSE SYSTEMS WORK, DID THEY PROVIDE ENERGY? UM, AND HOW MUCH OF OUR LOAD IS ULTIMATELY DISPATCHABLE AT THIS POINT? WHAT'S THE POTENTIAL.
COULD YOU SPEAK TO THAT PLEASE? OR VICE PRESIDENT ENERGY MARKET OPERATIONS? SO I'M SORRY.
UM, COMMISSIONER SMITTY, YOU'RE TALKING ABOUT DISTRIBUTED GENERATION, LIKE, UM, OUR PECAN STREET, MUELLER KINGSBURY, AND, UH, THE TYPES OF STORAGE THAT WE HAVE AT THOSE COMMUNITY SOLAR LOCATIONS.
IS THAT WHAT YOU'RE SPEAKING TO? JUST SO I CAN ANSWER YOUR QUESTION PROPERLY.
THAT'S ONE OF THEM, WE HAVE MICRO, UH, POWER PLANTS, LIKE THE TEA, PAUL ROBBINS, CHILLING PLANT, AND DOWNTOWN AUSTIN.
UM, AND THEN THE OTHER QUESTION I HAD ALSO WENT TO DEMAND, MAN, ERICA, YOU KNOW, FAILABLE AND HOW MUCH WE WERE ABLE TO SWITCH OFF BY THE FLICK OF A BUTTON ON THE, ON THE COMPUTER.
SO, YOU KNOW, WE HAD, UM, YOU KNOW, WE WERE, AS YOU COULD IMAGINE, UM, USING ALL OF THE RESOURCES AT OUR DISPOSAL.
SO, UM, OUR DISTRICT COOLING, UM, UH, FACILITIES WERE UP AND RUNNING, UM, MANAGING IN THIS WEATHER EVENT, LIKE ALL OF OUR RESOURCES WERE MANAGING THIS, THIS, UH, VERY, VERY SEVERE CONDITIONS WE, UH, HAD, UH, ONE OF OUR BATTERIES, UM, AT, UH, UH, MUELLER, UH, HAD, HAD BEEN IN OUTAGE.
UH, BUT THE, UH, BATTERY AT KINGSBURY, UM, WAS, WAS USED.
UH, WE WERE DEPLOYING IT, UM, THROUGH A SYSTEM THAT WE HAVE CALLED
UH, WE WERE ALSO, UH, USING OUR THERMOSTAT PROGRAM.
WE WERE DEPLOYING TWICE A DAY, UM, FOR A COUPLE OF DAYS.
UM, AND, UH, AS YOU KNOW, SOME OF OUR, UM, BECAUSE OF THE CUSTOMERS THAT WERE EXPERIENCING OUTAGES, UM, OR HAD, YOU KNOW, BEEN PART OF ROTATING OUTAGES, UM, SOME OF THOSE PROGRAMS WEREN'T AS EFFECTIVE.
UM, THOSE PROGRAMS THAT WE USE, FOR EXAMPLE, THE LEGACY, THE THERMOSTAT IS REALLY TYPICALLY A SUMMER, UH, UH, PROGRAM.
UM, SO WE'RE REALLY LOOKING TO USE WHAT WE HAD AT OUR DISPOSAL DURING THIS EVENT.
SO, UM, YES, WE DID LOOK AT, WE DID UTILIZE AND TAKE ADVANTAGE OF THE DEMAND SIDE PROGRAMS THAT WE HAD.
UM, MAYBE NOT AS EFFECTIVE AS, YOU KNOW, LIKE IF WE WERE IN THE SUMMER OR, YOU KNOW, UM, DUE TO THE EVENT THAT WE WERE IN.
I THINK COMMISSIONER STONE, I SAW YOU WITH YOUR HAND UP.
I JUST WANTED TO, I GUESS IT'S NOT AS MUCH A QUESTION, BUT IN THE FOLLOW-UP REPORTING THAT GOES ON, I WOULD LIKE TO KNOW, UM, IF THERE'S A WAY TO EXAMINE THE GRID IN TERMS OF, UM, YOU KNOW, IT WAS A LOT OF THE EAST SIDE, THERE WERE A LOT OF MULTIFAMILY APARTMENTS THAT WENT OFFLINE AND THE DAMAGE HAS BEEN TREMENDOUS WITH THE NUMBER OF BURSTS PIPES.
I MEAN, THERE ARE STILL PEOPLE LIVING IN APARTMENT BUILDINGS THAT DON'T HAVE WATER.
AND GIVEN THAT WE, YOU KNOW, IT'S BEEN THE WORST DROUGHT EVER, AND THEN THE WORST COLD EVER, AND THE WORST HEAT EVER.
AND IT SEEMS LIKE WE'RE LIVING IN THE WORST EVERS A LOT THESE DAYS.
AND SO, UM, MY HOUSE WITH THE POWER OFF ENDED UP BEING ABOUT 45 DEGREES.
WHEREAS SOME OF THESE UNWEATHERED
I HAD A FRIEND WHO WOKE UP AND HER BUILDING WAS 38 DEGREES.
AND LIKE, THAT'S REALLY UNLIVABLE.
I JUST WONDER HOW WE CAN LOOK AT, UM, NOT ONLY, YOU KNOW, THE NEIGHBORHOODS THAT THE CRITICAL THINGS CRITICAL LOADS ARE IN, BUT ALSO HOW TO PREVENT HUNDREDS OF MULTIFAMILY UNITS FROM GOING OFFLINE.
UM, WHEN IT SEEMS LIKE THE DAMAGE AND, AND JUST THE LOW-INCOME NEIGHBORHOODS AT LARGE, LIKE, WE NEED TO THINK ABOUT THESE IN DIFFERENT WAYS IN TERMS OF WHAT THE WEATHERIZATION IS, WHAT THE TEMPERATURE IN THE HOUSE IS GOING TO BE.
I THINK RENTERS ARE PARTICULARLY, UM, AT THE WHIM OF THEIR LANDLORD TO HAVE PUT IN SOME PROTECTIONS FOR THESE THINGS IN WAYS THAT SOME HOMEOWNERS ARE, UM, ABLE TO PREPARE FOR.
SO I WOULD JUST LIKE TO SEE A LITTLE BIT OF ANALYSIS COMING BACK ON THAT WITH HOW SOME OF THESE REALLY LARGE BUILDINGS THAT PUT SO MANY HUNDREDS OF PEOPLE, THOUSANDS OF PEOPLE AT REALLY SEVERE RISK
[01:05:01]
CAN BE TAKEN, UH, INTO SOME GREATER CONSIDERATION WHEN WE, WHEN THESE, UM, GRID QUESTIONS ARE EXAMINED.UM, YOUR POINT IS WELL TAKEN IN ANY OF OUR AND FAMILY LIVED IN SOMEONE'S APARTMENT BUILDINGS IS AS YOU MIGHT GUESS, BUT TO YOUR POINT, OUR AFTER ACTION REVIEW IS GOING TO TAKE A LOOK AT THAT AS YOU WELL KNOW, ROTATING OUTAGES, BEING ABLE TO ROTATE THAT LOAD, THE PERVASIVENESS OR THE EXPANSIVENESS OF OUR CRITICAL LOADS IS A CONCERN.
AND OBVIOUSLY THE DURATION OF THIS POLAR VORTEX EXTENDING SEVEN DAYS AND BEYOND, UH, OBVIOUSLY BEYOND OUR CONTROL, BUT TO YOUR POINT, THE COMMISSIONER STONE ON THAT IS SOMETHING WE WILL CONSIDER IN OUR, OUR, AFTER OUR EVENT ANALYSIS.
UH, RMC MEMBERS, IF YOU HAVE A QUESTION, EITHER UNMUTE OR COME ON THE SCREEN, AND IF NOBODY HAS ONE RIGHT NOW, I DO HAVE A COUPLE.
ALL RIGHT, I'M GONNA GO WITH MINE, BUT, UH, IF ANYBODY HAS ONE IN LIKE, WELL, WE'RE GOING AND FEEL FREE TO WAVE AT ME ON THE SCREEN AND I'LL, I'LL GET YOU NEXT.
UM, YEAH, AT FIRST, I JUST WANT TO, UM, THANK YOU TO AUSTIN ENERGY STAFF.
I KNOW THIS WAS AN INCREDIBLE CHALLENGE AND, UM, I APPRECIATE THE, THE MENTALITY SEEMS TO BE THAT WE DID THE BEST WE COULD.
EVERYBODY WAS WORKING SUPER HARD AND YET WE ALL RECOGNIZE THAT, UM, THINGS STILL NEED TO BE IMPROVED UPON.
SO THE, UM, YOU KNOW, OUR COMMUNITY IS NOT HARMED IN THE WAY THAT IT HAS BEEN AND CONTINUES TO BE.
I DO WANT TO, UM, YEAH, JUST KIND OF LIKE, PLUS ONE TO WHAT RACHEL SAID ABOUT THE WEATHERIZATION.
UM, YOU KNOW, I KNOW THAT, UM, EVEN WITH, WITH ENFORCEMENT OF, YOU KNOW, BILLING CODES AND IN NEW BUILDINGS, UM, YOU KNOW, OFTEN THE ENERGY EFFICIENCY SIDE OF THINGS IS SEEN AS LESS IMPORTANT AND NOT CONSIDERED, YOU KNOW, UH, ESSENTIAL MAYBE TO DO INSPECTIONS ON AND IT'S, UH, YOU KNOW, NOT A LIFE SAFETY ISSUE.
WELL, HERE, IT TURNS OUT THAT ACTUALLY HAVING A WELL-INSULATED BUILDING IS AN ACTUAL LIFE SAFETY ISSUE, WHICH IS, UM, A NEW THING FOR US, I GUESS.
UM, BUT JUST, YOU KNOW, TO ADD A COMMENT TO THAT, MY QUESTION IS ABOUT USING SMART METERS, UM, TO ACTUALLY BE ABLE TO MANAGE THE OUTAGES.
UM, WELL, IT'S THAT THE UTILITY IS NOT SET UP TO BE ABLE TO DO THAT AT THE MOMENT.
UM, BUT IT SEEMS LIKE THERE'S INFRASTRUCTURE THAT WE ARE ALL PAYING FOR IN THE FORM OF SMART METERS.
AND OBVIOUSLY WE'RE GETTING SOME OTHER BENEFITS FROM THAT, BUT, UM, THE, PERHAPS THERE'S AN OPPORTUNITY GOING FORWARD TO BE ABLE TO USE THE SMART METERS TO, UH, RE ROLL THOSE OUTAGES FROM ONE AREA TO ANOTHER, EVEN IF, UH, CUSTOMERS ARE ON A CIRCUIT THAT IS SHARED WITH CRITICAL LOADS.
UM, AND I'M WONDERING IF ANYBODY IS ACTIVELY WORKING ON THAT RIGHT NOW AT THE UTILITY.
LET ME TRY TO ADDRESS THAT GENERALLY YOUR SMART METERS, DON'T ROLL INTO THE LIABILITY AND OPERATION SPACE.
UH, FOR INSTANCE, ON A LOAD SHED, THERE'S A HUGE TIMING REQUIREMENT AND SAW THE URGENCY THAT TECHNOLOGY IS NOT BUILT FOR SCOPE FOR THAT.
WE ARE LOOKING AT OUR, OF OUR AFTER ACTION WHERE THAT TECHNOLOGY MIGHT BE AN EIGHT IN TERMS OF BUSINESS CASE, BUT YOUR POINT IS MORE MADE.
IDEALLY IT COULD DO THAT IF IT WERE DESIGNED FOR THAT, BUT WE DO NEED TO LOOK TO YOUR POINT.
WE NEED TO EVALUATE AND SPEAK WITH OUR VENDORS.
IS THERE A BUSINESS CASE OR BUSINESS USE CASE THAT CAN MAKE THE OPERATIONAL REQUIREMENT REQUIREMENTS? GENERALLY, UH, SMART METERS ARE ABOUT SHIFTING SERVICE, GETTING READS METER READS ON THE BUSINESS SIDE.
THE RELIABILITY SIDE IS SOMEWHAT OF A FIREWALL WILL, UH, AND THAT TECHNOLOGY BEING TO OPERATE ON THAT FIREWALL WITH THOSE TIMING REQUIREMENTS, WITH THE SCRUTINY THAT IT NEEDS TO HAVE, UM, IS A BUSINESS CASE.
IT IS A STRETCH, UM, BUT IT'S SOMETHING THAT WE NEED TO SHARPEN OUR PENCIL ON AND WE NEED TO REVIEW.
SO, UM, COMMISSIONER WHITE, WE WILL TAKE A LOOK AT THAT AS PART OF OUR ACTION AFTER ACTION.
AND I HAVE, UM, YEAH, SO I'VE BEEN TALKING TO SOME OTHER FOLKS ABOUT THIS, UH, IN THE INDUSTRY AND HAVE DEFINITELY HEARD THAT ISSUE OF, UH, THE QUICK TIMING BEING AN ESSENTIAL ONE.
UM, ONE OF THE THINGS THAT WAS SUGGESTED WAS THAT PERHAPS
[01:10:01]
YOU FEEL LIKE YOU WOULD STILL, UH, INITIALLY TURN OFF AT THE THEATER OR CIRCUIT LEVEL, BUT THEN BE ABLE TO UTILIZE, UH, SMART METERS WITH SOME ADDITIONAL SOFTWARE TO THEN START ROTATING.SO THAT YOU'D GET THAT QUICK RESPONSE, UH, YOU KNOW, AT THE INITIAL, UM, LOAD SHEDDING, BUT THEN IF IT WAS GOING TO CONTINUE THAT YOU COULD PERHAPS BE ABLE TO ROLL THOSE OUTAGES.
SO, UM, YEAH, JUST SOMETHING THAT I HOPE WE CAN BE TALKING ABOUT BECAUSE I, I DO THINK THAT A BIG, UM, PART OF THE HARDSHIP, OBVIOUSLY IT WAS INHERENTLY GOING TO BE HARD, BUT THE FACT THAT SOME PEOPLE WENT SO LONG WITHOUT ELECTRICITY WAS, WAS THE MAJOR FACTOR IN A LOT OF CASES.
UM, IT DOES MAKE THEORETICAL SENSE AND IT'S SOMETHING WE WILL EVALUATE.
KRISHNA WHITE COMMISSIONER OR VIRTUAL.
UH, YEAH, I JUST WANT TO ADD MY OBSERVATION THAT I THINK THAT, UH, AUSTIN ENERGY DID A BANG UP JOB OF TRYING TO GET AHEAD OF THIS AND, UM, AND TO TRY TO CATCH UP AFTER THE CONSEQUENCES, UH, UH, MAKE THEMSELVES MANIFEST.
UH, SO, YOU KNOW, CONGRATULATIONS TO STAFF ON THAT.
UM, ONE OTHER THING THOUGH I WANTED TO POINT OUT IS, UH, CAUSE NOBODY'S MENTIONED THIS, WHAT WE JUST EXPERIENCED WAS MOSTLY A FAILURE OF THE ERCOT SYSTEM.
AND I SUSPECT THAT ERCOT IS GETTING READY TO MAKE SOME BIG CHANGES, COULD BE WRONG, COULD BE THAT SOMEHOW THEY MANAGE TO POUND THIS DOWN AND IT'S JUST LOST IN THE, UH, IN THE MIX.
AND ONE OF THE THINGS WE NEED TO DO IS KEEP IN MIND THAT UNTIL WE FIGURE OUT HOW HER COTS GOING TO GO AT ADDRESSING THEIR SIDE OF THE EQUATION, WE CAN'T REALLY FIGURE OUT HOW WE WANT TO ADDRESS OUR SIDE.
YOU KNOW, THERE'S, THERE'S TWO ISSUES.
ONE IS PEOPLE WERE FREEZING TO DEATH.
AND THE OTHER ONE IS THAT WE WERE FINANCIALLY EXPOSED.
UH, IT LOOKS LIKE, YOU KNOW, MAYBE IF WE'RE LUCKY WE WILL COME OUT ON THE WINNING END OF THE FINANCIAL EXPOSURE.
DON'T KNOW IF THAT'LL HAPPEN NEXT TIME.
IT'S T PAUL'S BIGGEST CONCERN, BUT THOSE ARE COMPLETELY WHILE THEY'RE NOT COMPLETELY DIFFERENT CONCERNS, BUT THEY ARE DIFFERENT CONCERNS.
IF WE HAD DOUBLE THE GENERATION CAPACITY, WE WOULD STILL HAVE JUST BEEN JUST AS COLD.
WE WOULD HAVE BEEN DUMPING INTO ERCOT AND THEY'D BEEN SHARING IT OUT AMONG THE REST OF THE ENTIRE STATE AND WE WOULDN'T HAVE BEEN ANYMORE.
AND, UH, IF, UH, IF WE DIDN'T HAVE, UM, ALL OF THE GENERATION PLANTS THAT WE HAVE, MAYBE WE WOULD HAVE BEEN FARTHER BEHIND THE EIGHT BALL FINANCIALLY, OR MAYBE WE WOULD HAVE BEEN AHEAD OF THE, UH, WHERE WE ARE ON, UH, ON THE FINANCIALS.
UH, BUT UNTIL WE KNOW WHAT ARE CHANGES, ERCOT IS GOING TO MAKE AND THEIR SYSTEM, WE DON'T REALLY KNOW HOW TO FIX OR HOW TO CURE ANY FINANCIAL EXPOSURE.
SO I JUST WANT TO CAUTION PEOPLE TO, TO GOODNESS, A LITTLE TIME TO PLAY OUT.
LUCKILY, HOPEFULLY WE'RE PAST THE WINTER PROBLEMS AND NOW WE CAN LOOK FORWARD TO ALL OF THE DIFFICULTIES OF TRYING TO MEET OUR SUMMER PEAK, UH, AND, UH, YOU KNOW, DIFFERENT, COMPLETELY DIFFERENT SET OF, UH, SET OF PROBLEMS. AND I THINK WE'VE GOT A LITTLE TIME TO FIGURE OUT HOW WE'RE GOING TO ADDRESS THIS.
UH, SO, YOU KNOW, LET'S JUST MAKE SURE NOT, NOT TO JUMP TOO FAR AHEAD OF THE AHEAD OF THE PAIN.
COMMISSIONER VIRTUAL, CUSHNER, WHITE, ANYBODY ELSE FROM THE RMC I'M SEE MEMORIES.
SO HARD FOR ME TO TELL IF YOU MIGHT HAVE A QUESTION OR A COMMENT, WE CAN GO BACK TO ESE IF ANYBODY ELSE HAS QUESTIONS OVER THERE.
IN THE FUTURE, WE'LL LET YOU SEE A PLAN WITH ALL THE CAPITAL METRO BUSES, LARGE BATTERIES, YOU KNOW, WE'RE GOING TO SEE MORE AND MORE ELECTRIFIED BUSES AND CAP METRO, HOPEFULLY SOME SCHOOL BUSES, HUGE SET OF BATTERIES.
THIS IS NOT A SHORT-TERM THING, BUT I'D LIKE TO HAVE ENGAGED OVER THE MID TERM, YOUR DISCUSSION ABOUT VIDA G THE PROTEST OF US AS THE CAP, METRO HAS HAVE THAT CAPABILITY.
[01:15:01]
ROTATING BACKUPS IN SOME WAY LONGER TERM TECHNOLOGY INVESTMENT, BUT I JUST DON'T WANT TO GET HERE 10 YEARS FROM NOW.AND WE HAVE A HUGE AMOUNT OF STORAGE ON THESE BUSES, FOR EXAMPLE, AND THEN WE CAN'T USE THEM FOR GRID RESILIENCY.
I THINK YOU HAD YOUR HAND UP, AND THEN I HAVE A QUESTION.
WELL, MINE WAS ACTUALLY A VERY SIMILAR COMMENT TO DAVE'S.
I JUST WANTED TO, I FEEL LIKE AT THE STATE LEVEL, PEOPLE ARE DIVING INTO WHAT LOOKED LIKE SOLUTIONS VERY, VERY QUICKLY IN TERMS OF WE NEEDED TO BE, YOU KNOW, HAVE GREATER CAPACITY TO THE NEIGHBORING, UH, INTERCONNECTION AREAS.
UM, AND WE HAVE TO HARDEN ALL OUR, UH, UH, GENERATION UNIT.
I ENDED UP SOME, SOME OF THE HARDENING DECISIONS.
ONE OF THE DECISIONS IS, IS WHAT A PENALTY YOU'RE WILLING TO PAY IN TERMS OF THAT WINTER RESILIENCY AT THE COST OF A SUMMER PERFORMANCE EFFICIENCY.
AND, UM, UH, I WAS STRUCK BY KERRY'S COMMENTS.
I WOULD SAY THAT, THAT, UH, WE SHOULD LOOK AT THAT RESTRICTION THAT DEPENDENCY ON ERCOT IS ALSO A, MAYBE A GUIDANCE PRINCIPLE TO WHAT WE DO CHOOSE AS APPARENT PATHWAYS.
UM, I JUST DON'T WANT US TO CONFINE SOLUTIONS TO WHAT WE THINK THE PROBLEM IS BECAUSE, UH, THE KEY, THE KEY IN MY PERSONAL EXPERIENCE IS THAT NO POWER IS VERY PAINFUL.
UH, POWER SPACED OVER TIME IS MORE THAN TOLERABLE, WHICH IS WHAT I EXPERIENCED, RIGHT.
I HAD ROLLING, UH, OUTAGES THAT WE COULD HAVE ENDURED INDEFINITELY.
AND SO THAT IS, THAT IS SOMETHING THAT WE COULD CONTROL AND IMPLEMENT, AND THAT WOULD, UH, PROVIDE CAPABILITY FOR A VARIETY OF, UH, BAD CIRCUMSTANCES, NOT JUST A HARSH WINTER EVENT.
SO, UH, SO I GUESS MY COMMENT WAS, WE NEED TO THINK, UH, IF WHATEVER, WHATEVER'S A FAILURE, IT WAS A FAILURE IN LEADERSHIP.
AND, AND I WANT TO COMPLIMENT ERCOT AND AUSTIN ENERGY FOR THE LINE, THE FRONTLINE EXECUTION OF RECOVERY, BECAUSE IT WAS OBVIOUSLY VERY CHALLENGING AND I'M IMPRESSED THAT GIVEN SOME OF THE BIG WATER EVENTS AND WHATNOT, UH, UH, WE RECOVERED AS QUICKLY AS WE CAN TODAY.
AND, UH, I KNOW COMPLETE ACKNOWLEDGEMENT TO THE PEOPLE WHO STILL DON'T HAVE WATER.
THANK YOU, CHRISTOPHER WELL-DONE, UH, ANYBODY ELSE ON THE EUC? OKAY.
I HAD A, JUST A COUPLE OF QUESTIONS AS WELL.
FIRST I WANT TO ECHO, I GO EVERYBODY'S, UH, THANKS, HEARTFELT, THANKS TO, UH, THE UTILITY.
I KNOW, UH, TEAMS ACROSS, ACROSS THE BOARD, UM, YOU KNOW, WORK 24 SEVEN TO, TO ADDRESS THE EMERGENCY AND, AND, AND GET POWER BACK TO CUSTOMERS AS QUICKLY AS POSSIBLE.
AND I REALLY DO APPRECIATE ALL THOSE EFFORTS AND, UH, JUST LIKE EVERYONE ON THIS CALL HAS SAID, UM, I, I THINK AS FAR AS, UM, AFTER ACTION REPORTS, I KNOW THIS, SOME OF THIS IS, IS LONG-TERM.
I KNOW, UM, BUT I'D LIKE TO SEE, AND I THINK MANY PEOPLE HAVE BROUGHT UP, UM, THESE VARIOUS PIECES, BUT OF, OF HARDENING, UM, YOU KNOW, RESILIENCE AND FLEXIBILITY OF THE AUSTIN ENERGY DISTRIBUTION SYSTEM.
AND I THINK THERE ARE MULTIPLE WAYS TO TACKLE THAT.
AND, AND WE'VE HEARD A LOT OF REALLY GREAT IDEAS ALREADY HERE TODAY, AND I HOPE THAT WE SEE SOME KIND OF, UM, YOU KNOW, COMPREHENSIVE COST BENEFIT ANALYSIS OF, OF WHAT, WHAT ARE THE CURRENT TECHNOLOGIES, HOW MUCH DID THEY COST AND, AND, YOU KNOW, WHAT'S FEASIBLE, UM, AT WHAT PRICE, UH, BECAUSE, YOU KNOW, I I'D LIKE TO SEE INFORMATION ON, UM, WHAT COMMISSIONER WHITE WAS TALKING ABOUT, SMART METER GRANULARITY, UM, SEXUALIZATION, UM, MORE DEMAND RESPONSE TECHNOLOGY, UM, AND INCORPORATING EQUITY CONSIDERATIONS INTO THE, UM, LOAD FED PLANS, UH, AND, UH, THE NETWORK, UM, THE DOWNTOWN NETWORK, AND WHETHER THAT CAN BE SECTIONALIZED IN ANY, IN ANY MEANINGFUL WAY.
UH, ALSO WHETHER INCORPORATING, UM, UH, ONSITE, YOU KNOW, MICRO-GENERATION OF SOME KIND OR, OR SMALLER BATTERIES THAT AUSTIN ENERGY OWNS 10 MEGAWATTS OR UNDER, OR SOMETHING LIKE THAT, JUST SO THE FULL GAMUT OF WHAT WHAT'S AVAILABLE TO, TO HELP, UH, YOU KNOW, MAKE OUR ENERGY DISTRIBUTION SYSTEM MORE RESILIENT AND FLEXIBLE SO THAT IF WE'RE FACED
[01:20:01]
WITH AN ENORMOUS LOAD SHED DIRECTIVE FROM, UH, ERCOT AGAIN, UH, THROUGH, YOU KNOW, FOR, FOR WHATEVER REASON THAT WE'RE MORE PREPARED TO, UM, RESPOND.AND THAT'S MORE JUST A COMMENT.
UM, I DID HAVE A QUESTION ON, ON SLIDE NINE, THE, THIS IS THE GENERATION PORTFOLIO PERFORMANCE, UM, AND MR. JACKSON, MAYBE YOUR, UM, MS.
UH, THIS IS ERICA PIERCE PARK.
SO, UH, THE, THE BLUE IS NOT WHERE THE NATURAL GAS IT IS NOT RUNNING AT MAX NECESSARILY.
UH, WHAT YOU ARE SEEING IN THAT GRAPH IS THE ACTION THAT, UM, W THAT WAS, UH, PUT ON THE GRID, UH, WHAT IT DOES NOT SHOW YOU IS, UM, GENERATION THAT POTENTIALLY DID NOT GENERATE.
UM, AND I'LL GIVE YOU AN EXAMPLE, UM, AT NIGHT ON THE 13TH AND THE 14TH, OUR GPS, UH, WERE NOT DEPLOYED BECAUSE, UM, NATURAL GAS PRICES, UH, WERE VERY, VERY HIGH, UM, AND, UH, FOR MAKING OUR PRODUCTION COST VERY HIGH IN THOSE SETTLEMENT POINT PRICES OVERNIGHT WERE LOW.
SO, UH, WE SAW SETTLEMENT POINT PRICES BETWEEN 700 AND $1,400 OFF PEAK.
AND, UM, OUR GTS PRODUCTION COSTS WAS NORTH, UH, WAS AROUND $2,000.
SO THEY DID NOT RUN NOW LOOKING OVER TO THE RIGHT OF THAT, UM, AND REALLY THROUGHOUT THE ENTIRE GRAPH.
UM, IT DOES NOT SHOW YOU THE AMOUNT OF INSULARY SERVICES, UM, THAT WE WERE, UH, SELF PROVIDING.
AND SO THERE WAS, UH, MORE CAPACITY ON ALL OF OUR GENERATION, UM, COAL, ALL OF OUR NATURAL GAS UNITS, UM, UH, DECKER, AS WELL AS THE SANDHILLS, AS WELL AS THE GTS WHERE WE WERE SELF PROVIDING ANCILLARY SERVICES, UH, WHICH WAS A VERY GOOD DECISION FOR US BECAUSE IN SOLELY SERVICES CLEARED AT TWO TIMES THE AMOUNT OF ENERGY.
SO IN $25,000 RANGE, SO WE SAVED OUR CUSTOMERS A LOT OF MONEY THERE.
SO THIS SHOWS YOU THE AMOUNT THAT WAS GENERATED.
IT DOESN'T SHOW YOU THE CAPACITY THAT WE HAD ON ALL OF OUR UNITS.
UM, THERE WAS ANOTHER PHENOMENON THAT WAS OCCURRING.
UM, AND THAT WAS THAT, UH, WHILE THE SYSTEM, WHILE ERCOT WAS TRYING TO BRING LOAD BACK ON, UM, SOME OF THE GENERATION WAS BEING IN OURS, INCLUDED WAS, UH, HAD, UH, WITH BEING TOLD TO KIND OF STAY TOWARDS THE BOTTOM BOTTOM, AND THAT'S BECAUSE, UM, IT NEEDED TO, UH, STABILIZE THE NETWORK.
UM, SO WE WERE GETTING BASE POINTS, UH, TOWARDS THE MIDDLE OR TOWARDS THE BOTTOM OF OUR PLANTS FOR MANY HOURS, UM, THROUGHOUT THURSDAY, THROUGHOUT WEDNESDAY AND THURSDAY.
UM, AND, AND, AND THEREFORE, UH, THAT CAPACITY WAS JUST WAITING TO COME ON AS THEY COULD BRING ON LOAD.
SO I JUST WANTED TO SHARE WITH YOU SOME OF THE REASONS WHY YOU DON'T SEE THE FULL CAPACITY OF OUR UNITS, YOU HUMAN SPIRITS LIKE THAT.
YOU ANTICIPATED ALL OF MY FOLLOW-UP QUESTIONS THERE.
I WANTED TO START WITH JUST THE PEAKS AND VALLEYS THERE ON THE THIRD, THE 13TH AND 14TH WITH NATURAL GAS IN PARTICULAR, I GET THE INTERMITTENCY OF WIND AND SOLAR, BUT I WAS WONDERING WHY, WHY WE SAW THE TROUGHS, UM, ON NATURAL GAS.
SO, UM, THAT THAT'S, THAT'S REALLY HELPFUL.
UM, SECOND, SECOND QUESTION ON THAT.
DID WE EXPERIENCE ANY SUPPLY INTERRUPTION, UH, ON NATURAL GAS? UH, SO WE DIDN'T HAVE SUPPLY INTERRUPTIONS FROM OUR SUPPLIERS, SO WE PURCHASED GAS AND WE WERE FORTUNATE ENOUGH, UM, ALTHOUGH AT A VERY EXPENSIVE RATE, UM, WE WERE ABLE TO OBTAIN THE GAS FOR OUR UNITS, EXCUSE ME, BUT THERE WERE PIPELINE ISSUES.
SO, UH, THERE WERE PRESSURE ISSUES ON THE PIPE.
AND SO THERE WERE TIMES WHERE WE HAD SOME, UM, EXCUSE ME, WE HAD, UH, UH, SOME OF OUR, UH, GAS WAS CUT, BUT, UM, WE NEVER HAD A PROBLEM BRINGING UP OUR GENERATION DUE TO NATURAL GAS.
WE ALSO TALKED A LITTLE BIT ABOUT, UM, WEATHERIZATION EFFORTS AND, AND THAT THERE ARE SOME OF OUR, OUR GENERATION WAS DOWN, UH, DUE TO
[01:25:01]
DUE TO W WHAT WE WOULD CALL, UM, WEATHERIZATION ISSUES.UM, BUT, BUT THEN YOU WERE ABLE TO BRING UP, BRING BACK UP OR OUR PLANTS, UM, RELATIVELY QUICKLY.
UM, I, I, YOU KNOW, WE WE'VE SEEN IN THE NEWS AND, AND IN MANY OF THE OTHER, UH, YOU KNOW, HEARINGS AND, AND, AND MEETINGS THIS 2011, UM, DEPARTMENT OF, OR THE DOD, UH, RECOMMENDATIONS, UM, ON, OR DOE SUMMARY RECOMMENDATIONS OR WEATHERIZATION DOD OF CRA, UH, SORRY ABOUT THAT.
UM, AND, AND SO I WAS, I WAS JUST WONDERING IF, IF, UM, SO MY UNDERSTANDING IS THAT THERE ARE NOT A MINIMUM MANDATORY, UM, WEATHERIZATION, UH, REQUIREMENTS THAT, UM, EITHER THAT THERE ARE SOME THAT ARE BEING CURRENTLY CONSIDERED BY NERC, UM, AND, AND THAT MAY BECOME MANDATORY, BUT THEY AREN'T YET.
AND, AND SO I WONDER IF YOU COULD JUST SPEAK ABOUT AUSTIN ENERGY'S APPROACH TO WEATHERIZATION, IF THERE ARE NO MINIMUM STANDARDS, HOW DO YOU, HOW DO YOU APPROACH WEATHERIZATION, UM, FROM A BEST PRACTICES STANDPOINT, AND HAVE YOU ANY, YOU KNOW, LESSONS LEARNED FROM HOW OUR PLANTS PERFORMED, UH, DURING THIS WINTER WEATHER EVENT? HI COMMISSIONER, THIS IS PAT SWEENEY, UH, VICE PRESIDENT POWER PRODUCTION.
SO, UH, FROM A WEATHERIZATION STANDPOINT, UH, THAT VARY BY THE, THE GENERATOR, JUST LIKE DIFFERENT MODEL CARS AND WHATNOT THERE, WHILE THEY'RE GENERAL, THEY ALL FUNCTION THEY'RE BUILT DIFFERENTLY IN DIFFERENT TIMES.
SO I OF ONE SIZE FITS ALL TYPES OF STANDARD.
UM, AND SO THERE MAY BE AN ATTEMPT TO DO THAT.
IT MIGHT BE FRANKLY DIFFICULT TO PULL THAT OFF BECAUSE OF THE VERY REASON I JUST STATED, UH, AND WEATHERIZATION OBVIOUSLY VARIES BY, UH, LOCATION.
SO IF YOU'RE IN A NORTHERN CLIMATE, UH, YOU'RE GOING TO HAVE A HIGHER WEATHERIZATION STANDARD TOWARDS THE COLD.
AND HERE I'LL GIVE YOU ONE EXAMPLE OF, ONE OF THE FIRST THINGS WE DO FROM A SUMMER PREP STANDPOINT IS REMOVED WINTER WEATHERIZATION.
SO FOR EXAMPLE, SOME EVERS BREADS, THINGS LIKE THAT THAT WOULD TRAP HEAT OR, OR MINIMIZE, UH, THE WIND, A WIND CHILL, UH, FIRST THING TO GET FROM MOVE THOSE.
SO, SO YOU KIND OF HAVE THIS ILLUSTRATION OF, WE HAVE A SYSTEM HERE THAT'S LARGELY BUILT TOWARDS MANAGING HEAT VERSUS COLD.
UM, SO, UH, BUT WE, WE DID HAVE SOME ISSUES WITH THE WEATHERIZATION STILL, AND, AND, AND, AND, UH, AND WE'VE HAD EVENTS IN THE PAST, THE MOST RECENT ONE BEING 2011, SO 10 YEARS AGO, AND I'LL GIVE APPLE, AND THIS IS STILL PRELIMINARY, BUT WE KNOW WE HAVE AT LEAST ONE INSTANCE OF AN ITEM IN OUR SANDHILL PLAN, A TRANSMITTER THAT FAILED AGAIN AND DUE TO DUE TO FREEZING, BUT THAT, AND THAT, THAT SAME DEVICE HAD A FAILURE BACK IN 2011, IT WAS POINTED OUT.
WE ACTUALLY TOOK STEPS TO FURTHER PROTECT IT AND PUTTING THE ADDITION TO HEAT TRACING AND AN ADDITIONAL, UH, WIND PROTECTION.
AND SO, YOU KNOW, SOME OF THE ITERATIVE PROCESS WHERE YOU CAN'T REALLY TEST THESE TEMPERATURES, RIGHT.
UH, BECAUSE OF THE, WHERE WE ARE.
AND SO YOU DON'T GET THE TEST UNTIL IT COMES.
AND UNFORTUNATELY, SOMETIMES IT TURNS OUT YOU WEREN'T QUITE AS PREPARED AS YOU MIGHT'VE THOUGHT.
AND SO THERE, THERE IS AN ONGOING, IT WILL CERTAINLY BE AN ONGOING LEARNING AND IMPROVEMENT FROM THAT.
AND, AND WE WE'VE LEARNED FROM THE PAST, AND WE'LL, WE'LL, WE'LL LEARN FROM THIS ALL, AND THEN LOOK AT THE OPPORTUNITIES TO MAKE THOSE IMPROVEMENTS.
COMMISSIONER WHITE, ANYTHING ELSE ON YOUR SIDE? I THINK WE SHOULD MOVE ON TO THE NEXT PRESENTATION, IF THAT'S ALL RIGHT WITH EVERYONE.
OH, MAKING SURE AUDIO IS GOOD TO GO.
MY NAME IS MARISSA MONTEREY, AND I AM THE DIRECTOR OF COMMUNICATIONS FOR AUSTIN ENERGY.
I WANT TO LET YOU KNOW THAT THE AUSTIN ENERGY COMMUNICATIONS TEAM CONTINUOUSLY ENGAGED WITH THE COMMUNITY KEY STAKEHOLDERS, THE MEDIA MAYOR, AND COUNCIL BEFORE, DURING AND AFTER POT ISSUES, THAT IT'S AN EMERGENCY IT'S ENERGY EMERGENCY ALERTS.
WE KNOW HOW OUR UTILITY COMMUNICATE DURING A CRISIS IS JUST AS IMPORTANT AS HOW THE INCIDENT IS MANAGED.
WE WORK HARD TO UNDERSTAND THE NEEDS AND DEMANDS OF OUR STAKEHOLDERS AND THE
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PUBLIC.SO THAT'S WHAT WE'RE ABLE TO DELIVER.
CLEARLY CLEAR, CLEARLY CLEAR MESSAGES WITH CREDIBILITY.
I KNOW THERE'S A COUPLE MORE PEOPLE AFTER ME, SO I'LL MAKE THIS BRIEF, BUT OVER THE NEXT COUPLE OF MINUTES, I WILL WALK YOU THROUGH THE COMMUNICATIONS.
THE AUSTIN ENERGY TEAM PROVIDED THROUGHOUT ALL OF THE EVENTS THAT UNFOLDED BETWEEN THURSDAY, FEBRUARY 11TH AND SUNDAY, FEBRUARY 20.
LET'S BEGIN WITH A LOOK AT OUR COMMUNICATIONS ON THURSDAY, FEBRUARY 11TH AND FRIDAY, FEBRUARY 12TH, AS WE NOTED INITIALLY THROUGH MR. JACKSON'S PRESENTATION, THAT INITIAL ICE STORM CAME THROUGH THAT FRIDAY AFTERNOON.
BUT AHEAD OF THAT INITIAL ICE STORM, OUR TEAM WORKED THROUGH A NUMBER OF DIFFERENT CHANNELS TO LET PEOPLE KNOW THAT WEATHER WAS ON ITS WAY.
WE ALWAYS WANT TO PROVIDE CUSTOMERS WITH MESSAGES ABOUT CONSERVATION AND OUTAGE PREPARATION AHEAD OF STORMS. BUT WE ALSO KNOW IT'S IMPORTANT TO LET FOLKS KNOW WHAT WE'RE DOING ON OUR END AS WELL.
SO WE SET THE ALARM CLOCK REALLY EARLY ON THOSE DAYS, AND WE PROVIDED LIVE INTERVIEWS TO NEARLY EVERY TV STATION IN TOWN.
WE ALSO RESPONDED TO MEDIA REQUEST ABOUT THE NUMBER OF CREWS WE HAD IN THE FIELD, ENERGY CONSERVATION AND OUTAGE PREPARE PREPARATION.
AND WE SHARED SOCIAL MEDIA MESSAGING AND UPDATED OUR WEBSITE.
ON THE LEFT, YOU'LL SEE THE NEWS RELEASE.
WE SENT OUT TO OUR 150 PLUS MEDIA PARTNERS.
WE ALWAYS MAKE SURE TO INCLUDE MAYOR AND COUNCIL STAFF AND OUR NEWS RELEASES SO THAT THEY'RE IN THE LOOP WITH THE INFORMATION WE'RE SHARING IN THE MIDDLE SOCIAL MEDIA MESSAGING ABOUT HOW TO PREPARE A REPORT FOR POWER OUTAGES AND ON THE RIGHT, THE TWO OF THE MANY INTERVIEWS WERE PROVIDED BEFORE THAT INITIAL ICE STORM HIT THESE SPECIFIC ONES SHOWN HERE ARE WITH CBS, AUSTIN AND TELEMUNDO AUSTIN.
ONCE THAT INITIAL STORM ROLLED THROUGH FRIDAY AFTERNOON, WE EXPANDED OUR MESSAGING TO INCLUDE OUTAGE RESTORATION AND MESSAGING AROUND THE NEXT INCOMING WINTER STORM.
WE CONTINUE TO PROVIDE THE SAME COMMUNICATIONS WE HAVE PROVIDED BEFORE THAT INITIAL ICE STORM.
BUT IN ADDITION, WE FACILITATED VIRTUAL NEWS CONFERENCES THAT SATURDAY AND SUNDAY, WE PROVIDED MAYOR AND COUNCIL WITH KEY MESSAGING ABOUT OUR CURRENT OPERATIONS.
WE EMAILED EVERY SINGLE ONE OF OUR CITY OF AUSTIN, UTILITY CUSTOMERS, A MESSAGE ABOUT ENERGY CONSERVATION.
WE ALSO SEND OUR KEY ACCOUNTS CUSTOMERS, WHAT WE CALL A NEWSFLASH.
THAT'S BASICALLY AN EMAIL ENCOURAGING THEM TO CONSERVE ENERGY.
AND FINALLY, WE PROVIDED MESSAGING TO OUR PARTNERS THAT THREE ONE, ONE AND CITY OF AUSTIN UTILITIES CALL CENTERS SO THAT THEY COULD BE PREPARED FOR THE MANY QUESTIONS WE KNEW WOULD BE COMING FROM THE PUBLIC AS A RESULT OF THAT BIG STORM.
NEXT SLIDE, PLEASE LOOK AT SOME OF THE COMMUNICATIONS THAT UNFOLDED THAT WEEKEND ON THE LEFT, MR. JACKSON, OUR CHIEF OPERATING OFFICER PROVIDED THOSE VIRTUAL NEWS CONFERENCES ON SATURDAY AND SUNDAYS.
WE ONCE AGAIN TELL PEOPLE THAT WITH THE INCOMING STORE AND THEY SHOULD PREPARE FOR A POWER OUTAGE.
SO THAT'S OUR METHODS IN THE MIDDLE.
ALSO, WE KNOW THAT NO ONE TELLS OUR STORY BETTER THAN OUR FOLKS WORKING OUT IN THE ELEMENTS.
SO THAT LAST IMAGE ON THE RIGHT IS A SNAPSHOT TAKEN FROM A VIDEO WE PUT TOGETHER OF OUR CREWS WORKING IN ICY CONDITIONS, THIS PARTICULAR FIELD CREW, LIKE IN HIS EXPERIENCE OF TRYING TO OPEN IC EQUIPMENT.
SO THAT OF OPENING UP A CAR DOOR THAT HAD BEEN ICED OVER, YOU KNOW, IT TAKES A LITTLE FORT.
SHE KIND OF WORKED OUT, GOT TO WORK AT IT A LITTLE BIT.
SO THROUGHOUT OUR COMMUNICATIONS, AS DIFFICULT AS IT MIGHT'VE BEEN, WE REALLY DID DO OUR BEST TO TRY TO PUT THINGS IN THE SIMPLEST TERMS POSSIBLE FOR THE PUBLIC TO UNDERSTAND WHAT WAS GOING ON.
AND THIS VIDEO IS ONE EXAMPLE OF THAT NEXT SLIDE, PLEASE, JUST AFTER MIDNIGHT ON SUNDAY, ERCOT ISSUED ITS FIRST EEA AUSTIN ENERGY STAFF PRACTICES FOR EAS EVERY YEAR, OUR TEAM HAD COMMUNICATIONS TEMPLATES READY TO GO.
THAT'S WHY IT TOOK US LESS THAN 30 MINUTES TO KNOCK OUT EVERY SINGLE COMMUNICATION BULLETED BELOW EACH EEA.
AS YOU ALL LIKELY KNOW, NEA THREE IS WHAT TRIGGERS THOSE ROTATING OUTAGES.
SO WHEN ERCOT ISSUED THAT EEA THREE, WE KNEW WE HAD TO GO BEYOND OUR NORMAL COMMUNICATION CHANNELS.
AND WE DID SO USING THE COMMUNITY COMMUNICATION CHANNELS, BOLDED ON THAT SLIDE ON THIS SLIDE INCLUDED AN EMAIL TO MAYOR AND COUNCIL, BUT WE ALSO WORKED WITH OUR HOMELAND SECURITY AND EMERGENCY MANAGEMENT GROUP TO ISSUE A WARRANT CENTRAL TEXAS ALERT IN BOTH ENGLISH AND SPANISH.
SO QUICK NOTE ABOUT THAT WARRANT CENTRAL TEXAS ALERT AS IT WAS ONE OF SEVERAL PROACTIVE TOOLS.
THE CITY USED TO REACH OUT TO PEOPLE THROUGHOUT THIS EVENT.
IT'S A REGIONAL EMERGENCY NOTIFICATION SYSTEM.
IT'S ORCHESTRATED THROUGH THE CAPITOL AREA.
COUNCIL OF GOVERNMENTS REGISTERING WITH WARREN CENTRAL TEXAS ALLOWS LOCAL OFFICIALS TO BASICALLY CONTACT COMMUNITIES BY PHONE, EMAIL, OR TEXT DURING TIMES OF DISASTERS OR PUBLIC SAFETY EVENTS.
ONE IMPORTANT THING TO NOTE THOUGH, IS PEOPLE MUST REGISTER TO RECEIVE THESE ALERTS THAT'S WISELY.
YES, TWO MINUTES AFTER ERCOT ISSUED THAT EA THREE, WE SHARED THAT INFORMATION ON OUR SOCIAL MEDIA PAGES.
AND THAT'S WHAT YOU SEE ON THE LEFT.
AND THE MIDDLE IS A SCREENSHOT OF THAT WARRANT, CENTRAL TEXAS MESSAGE.
WE SENT BOTH IN ENGLISH AND IN SPANISH AND ON THE RIGHT IS THAT EMAIL.
WE SENT THE HEAD OF THE EEAS TO ALL CITY OF AUSTIN, UTILITY CUSTOMERS TELLING THEM TO PREPARE FOR EXTREME WEATHER.
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THAT'S LIKELY AS SOON AS AUSTIN ENERGY'S APP REALIZED THESE OUTAGES, WE EXTEND EXTENDED LONGER THAN ANY OF US IMAGINED.WE STARTED TO GET THE WORD OUT AND EXPLAIN IT AS BEST AS WE COULD GIVEN THE LIMITED DETAILS AUSTIN ENERGY STAFF HAD WHAT WAS HAPPENING, BUT THAT WINTER STORM LINGERED ON THROUGHOUT THE WEEK AND AS THE EVENTS UNFOLDED.
WE CONTINUED TO FOCUS ON ENERGY CONSERVATION.
WE FOCUSED ON CRITICAL LOAD CIRCUITS, BUILDING QUESTIONS AND SADLY SCAM AWARENESS.
WE SHARED AS MANY DETAILS AS WE HAD AVAILABLE TO US USING THE SAME COMMUNICATION CHANNELS WE HAD RE WE ALWAYS RELY ON REALLY PARTICIPATED IN DAILY NEWS CONFERENCES THAT WEEK WITH AUSTIN, TRAVIS COUNTY LEADERSHIP.
AND WE ANSWERED MEDIA QUESTION AFTER ME A QUESTION AFTER ME, A QUESTION WE KEPT IN TOUCH WITH OUR CUSTOMERS THROUGH EMAILS ABOUT CONSERVATION AND OUTAGE UPDATES AND ONE BULLET FOOT.
IT ACTUALLY LIKES TO HIGHLIGHT IN THIS LIST.
IT'S A MORE THAN 500 SOCIAL MEDIA MESSAGES WE PROVIDED THAT WEEK.
WE UNDERSTAND NOT EVERYONE IS ON SOCIAL MEDIA.
THAT'S WHY WE WORKED THROUGH A LOT OF OTHER COMMUNICATION CHANNELS, BUT WE WERE ABSOLUTELY GETTING INUNDATED WITH QUESTIONS, SPECIFIC QUESTIONS FROM THE COMMUNITY ABOUT THEIR SITUATION THROUGH OUR SOCIAL MEDIA PLATFORMS. WE ALSO PROVIDED A SPECIAL HERE'S WHAT YOU NEED TO KNOW ABOUT OUR OUTAGE SITUATION WEBPAGE.
WE KNEW THAT A WEBSITE WOULD BE CRUCIAL IN GIVING EVERYONE WHETHER IT WAS MAYOR AND COUNCIL, THE MEDIA PUBLIX THREE, ONE, ONE, EVERYONE, A PLACE TO COME BACK TO YOU ON THIS DYNAMIC SITUATION.
SO THROUGHOUT THE WEEK, WE PROVIDED AN UPDATE AFTER UPDATE RIGHT THERE ON THE FRONT PAGE OF AUSTIN ENERGY.COM.
WE ALSO KNEW OUR OUTAGE MAP WAS GETTING A TON OF CLICKS AND WE MADE SURE TO INCLUDE UPDATES THERE AS WELL.
SO ON THE LEFT, YOU'LL SEE THAT WEB PAGE THAT WE UPDATED THROUGHOUT THE WEEK, WHICH PROVIDED KEY INFORMATION ABOUT WHAT WAS HAPPENING ON THE RIGHT.
IT'S A GLIMPSE OF WHAT WE CALL OUR ROTATING BANNERS.
SO THIS ONE SPECIFICALLY LINKS TO INFORMATION ABOUT AUSTIN ENERGY BILLS, WHICH WAS, AND CONTINUES TO BE A HOT TOPIC.
OF COURSE, THE OTHER PLACE FOLKS MIGHT GO TO LOOK FOR INFORMATION IS OUR COA UTILITIES.COM WEB PAGE.
THAT'S WHERE PEOPLE GO TO PAY THEIR BILLS.
SO WE MADE SURE TO UPDATE CONTENT THERE AS WELL.
AND THAT'S THE IMAGE SHOWN AT THE BOTTOM.
UH, ON THE LEFT, ANOTHER LOOK AT OUR SOCIAL MEDIA MESSAGING, LIKE I SAID, WE WOULD USE PHOTOS AND VIDEOS AS MUCH AS WE COULD TO EXPLAIN THE SITUATION ON THE RIGHT AND INFOGRAPHIC.
WE SHARED WITH THE PUBLIC ABOUT HOW WE RESTORE POWER AND ON THE BOTTOM LEFT A SNAPSHOT OF OUR GENERAL MANAGER, JACKIE SERGEANT PROVIDING AN INTERVIEW FOR THE CITY OF AUSTIN NEWS CONFERENCES.
AND FINALLY, JUST A QUICK LOOK AT THE COMMUNICATIONS WE SHARED WITH OUR GOVERNING BODY MAYOR AND COUNCIL.
WE'RE THANKFUL TO EACH OF THEM AND TO ALL OF YOU THAT HELPED AMPLIFY OUR MESSAGING DIRECTLY TO OUR COMMUNITY.
WE PROVIDED MULTIPLE MEMOS AND EMAILS ABOUT WHAT WAS GOING ON IN MANY LAWMAKERS.
AND LIKE I SAID, SOME OF YOU EVEN HERE BEFORE US TODAY SHARED OUR SOCIAL MEDIA MESSAGES MESSAGING, AND IT DID NOT GO AND NOTICE.
WE'RE GRATEFUL TO EAT THESE FOR SUPPORT.
LOOK FORWARD TO WORKING WITH ALL OF YOU IN THE FUTURE.
AS YOU CONTINUE TO TAKE A CLOSER LOOK AT THE EVENTS THAT UNFOLDED DURING THE STORM.
AND I'M HAPPY TO ANSWER ANY QUESTIONS OR GO AHEAD AND PASS THE BATON TO OUR NEXT PRESENTER.
UH, IT LOOKS LIKE COMMISSIONER TUTTLE HAS SOME QUESTIONS FOR YOU.
I THINK HE DID A GREAT JOB IN MANY WAYS.
UM, EVEN GENERAL MANAGER, SERGEANT GOT A COMPLIMENT ABOUT IT FROM THE HOUSE OR SENATE GAVE YOU AN A MINUS OR A DAY, WHICH IS REALLY, UH, QUITE IMPRESSIVE IN ITSELF.
HEY, THERE'S ALWAYS THINGS YOU COULD DO, EVEN THOUGH YOU WERE DOING SO MUCH, SOME OF THE THINGS I'VE HEARD OR, UM, EVEN THOUGH THERE WERE MESSAGES ABOUT KEEP YOUR CELL PHONE CHARGED, ET CETERA.
UM, ALSO WHEN THE POWER IS OUT AND YOU'RE NOT GOING TO BE ABLE TO ROLL THEIR THING, WATER, TO TRY TO SAVE PIPES FOR BEING BURST AND OR IF YOU REALLY CAN'T DRINK, BECAUSE THEN THE, THERE WERE OTHER ISSUES WITH THE WATER SYSTEM THEN DRAIN GO TO THE, SO COULD THERE NEXT TIME BE SOMETHING ABOUT IF WE KNOW PARTICULARLY EXTREME COLD WEATHER FOR A DURATION ABOUT DRIP OR DRAIN TO TRY TO SAVE A BURST PIPES.
AND THEN SECONDLY, I HEARD DIRECTLY FROM A PERSON, UM, THAT THEY HAD, THERE WAS AN ISSUE WITH THE TEXT ALERTS, I THINK, WHERE THEY SUBMITTED A PROBLEM SAYING WE'RE OUT.
AND THEN THERE WAS AN ERRONEOUS MESSAGE SAYING, OH, YOUR COUNTERS ARE STORED.
AND THEY KEPT DOING THAT AND THEY FELT FRUSTRATED BECAUSE IT MADE IT LOOK LIKE HE DIDN'T REALLY KNOW THAT THEY WERE STILL OUT THAT MAYBE THE MESSAGING SYSTEM, NOT SURE IF THAT'S IN YOUR DOMAIN, BUT THE ALERT SYSTEM AND SOFTWARE UPGRADES FOR THAT.
SO DRAINER DRIP AND WE'LL TEXT.
AND THEN I WAS GOING TO ASK YOU, WHAT ARE THE OTHER THINGS THAT YOU'VE GOTTEN FEEDBACK FOR THAT YOU DO EVEN BETTER, BUT THANK YOU FOR ALL YOU DID DO.
SO WE WILL DEFINITELY CONTINUE TO WORK WITH OUR AUSTIN WATER PARTNERS AND SHARING THEIR MESSAGING.
UM, I THINK WHEN WE FIRST STARTED THIS WITH OBVIOUSLY A POWER OUTAGE SITUATION AND AS THINGS EVOLVED, AS YOU ALL KNOW, IT BECAME MORE OF A WATER EMERGENCY AS WELL.
[01:40:01]
TO WORK WITH THEM TO SEE HOW WE CAN COME TOGETHER TO BETTER COMMUNICATE ALL OF THAT.AS FAR AS THE TEXT NOTIFICATION, I KNOW OUR OUTAGE MAP, THERE WAS SOME TEXT NOTIFICATION ISSUES WITH THAT, AND THAT'S SOMETHING WE'RE LOOKING AT AS WELL IN OUR AFTER ACTION REPORT.
AND THEN SOMETHING THAT I THINK THAT WE COULD LOOK AT DOING BETTER IN THE FUTURE.
AND I'VE GOTTEN THAT QUESTION FROM A LOT OF DIFFERENT FOLKS IS SOMETHING I'LL GO BACK TO MY PRESENTATION.
WE HAD SO MANY PEOPLE REACH OUT TO US ON SOCIAL MEDIA.
I COULD SEE US HAVING SOMEONE IN OUR CUSTOMER CARE OR THREE, ONE, ONE CENTER SIT WITH OUR COMMUNICATIONS TEAM AND RIGHT THERE WITH, AS A SOCIAL MEDIA, SOMEONE COMES IN AND GET US THEIR ADDRESS AND ASK THEM SPECIFICALLY WHAT'S GOING ON IN THEIR NEIGHBORHOOD THAT MIGHT BE ABLE TO CUT THROUGH SOME RED TAPE A LITTLE BIT EASIER RATHER THAN HAVING THEM IN A DIFFERENT PLACE FROM OUR COMMUNICATIONS TEAM.
SO THAT'S ONE AREA OF IMPROVEMENT I WOULD SEE GOING FORWARD.
DOES ANYBODY HAVE A QUESTION? I HAVE A QUESTION.
SO, YOU KNOW, IN THE SIMILAR VEIN OF, UH, COMMUNICATIONS AND OUTREACH, UM, I'M WONDERING, DOES THE CITY OR UTILITY HAVE ANY SORT OF PLAN OR INTENT TO TRY TO COORDINATE WITH DIFFERENT COMMUNITY GROUPS OR ORGANIZATIONS FOR THIS EMERGENCY OUTREACH? AND I THINK IT'S, TO ME, IT'S, IT'S ALARMING THAT SORT OF A, A, YOU KNOW, MAIN CENTRAL EMERGENCY TEXT ALERT IS AN OPT IN, UH, PROTOCOL FOR COMMUNITY MEMBERS.
UM, SO WONDERING WHAT OTHER ADDITIONAL OUTLETS AVENUES ARE, THE UTILITY OR CITY TAKING FOR SITUATIONS LIKE THIS.
UH, AND YOU KNOW, I'VE SEEN, UH, YOU KNOW, COMMUNICATION ENGAGEMENT BEING MY SPECIAL SPECIALTY OR AREA.
YOU KNOW, I'VE SEEN SO MANY DIFFERENT COMMUNITY ORGANIZATIONS AND NONPROFITS REALLY BEING THE ONES THAT ARE GETTING THIS INFORMATION AND DISPERSING IT THROUGHOUT THE COMMUNITY, UH, AND IN, IN A LOT OF AREAS.
AND SO THAT, THAT ALONE HAS HELPED SAVE A LOT OF LIVES AND SPREAD INTO EXTREMELY IMPORTANT INFORMATION.
SO I THINK THAT SHOULD BE MORE CENTRALIZED AND, AND STANDARDIZED FROM TOP DOWN IN THE CITY FOR, IN A SEVERE, UH, OR REALLY EXTREME WEATHER AND EMERGENCIES LIKE THIS.
I'M GETTING A LOT OF COMMUNICATIONS OUT.
UM, BUT I HAVE, I HAVE TWO THOUGHTS.
ONE IS WHEN DID YOU KNOW, WHEN DID YOU GET THE FORECAST THAT THIS WAS GOING TO BE AN EXTREME EVENT? I MEAN, NOBODY KNEW HOW EXTREME IT WAS GOING TO BE.
I, I GRANT YOU THAT, BUT, UM, I, FOR INSTANCE, HAVE HEARD COMMENT OR IS IT VARIOUS HEARINGS SAYING THAT ERCOT DIDN'T EXPRESS THE URGENCY OF WHAT WAS COMING SOON ENOUGH? SO DID A KNOW WHAT WAS COMING AND IF SO, I THINK THAT WE NEED TO TICK UP THE COMMUNICATIONS TO THE CITIZENS.
AND THE SECOND THING IS I THINK THAT WE NEED THE COMMUNICATION TO EMPHASIZE NOT ONLY CONSERVATION, WHICH, YOU KNOW, ULTIMATELY DIDN'T DO MUCH GOOD, RIGHT? BECAUSE IT WAS THE WHOLE GRID SITUATION, BUT WE NEED TO HELP PEOPLE UNDERSTAND.
WE NEED TO FOCUS ON PUBLIC HEALTH.
IN OTHER WORDS, IF YOU CAN GET TO SOME PLACE THAT HAS ELECTRICITY, YOU NEED TO DO IT AS SAFELY AND AS QUICKLY AS POSSIBLE BECAUSE IT MAY BE THREE OR FOUR DAYS.
AND TO COMMISSIONER TOTAL POINT, AND BY THE WAY, DRAIN YOUR PIPES BEFORE YOU LEAVE.
BUT, YOU KNOW, SO ONE, WHEN DID COMMUNICATIONS KNOW THAT YOU WERE GOING TO BE FACING EIGHT, EIGHT POTENTIALLY LIFE-THREATENING EXTENDED OUTAGE EVENT AND TWO, WHAT DO YOU THINK YOU COULD DO TO INCREASE THE SENSE OF URGENCY BEYOND YOUR USUAL, YOU KNOW, UH, NOTICES THAT YOU PLAN FOR, FOR E WHAT A ONE, TWO, ET CETERA.
WELL, MERCY, CAN I TAKE A STAB AT THAT ONE? IF YOU COULD PUT UP THE SLIDE, THIS IS SYDNEY JACKSON.
IF YOU COULD PUT UP THE SLIDE WHERE YOU TAKE TAKE, WHEN THE EEA ONE OCCURRED, THE EA TWO, AND THEN THE EA THREE, I DON'T REMEMBER THE NUMBER OF THAT SLIDE, BUT I'LL JUST BE VERY BRIEF RIGHT THERE.
SO EEA ONE OCCURRED AT JUST PAST MIDNIGHT AND WE WOULDN'T SAY EEA THREE AND
[01:45:01]
LESS THAN AN HOUR AND A HALF TYPICALLY EEA ONE IS JUST, UH, WHERE WE GOT TIGHT CONDITIONS.UM, THINGS ARE GETTING VERY TIGHT, PUBLIC APPEAL, REDUCE EMERGENT, YOU KNOW, REDUCED DEMAND TO GO TO ROTATING OUTAGES IN ONE AND A HALF HOURS IS MY 30 YEARS IN THE INDUSTRY.
I'VE NEVER SEEN ANYTHING THAT ABROAD.
UM, SO I JUST WANTED TO GIVE YOU THAT BENCHMARK.
SO MY QUESTION IS, SO DOES THAT ANY HAVE ITS OWN METEOROLOGIST, DID SOMEBODY TELL YOU WHAT WAS COMING? DID WE KNOW THIS POLAR VORTEX WAS HEADED OUR WAY? AND IF SO, WHEN, UM, SO WE WERE AWARE OF THE FORECAST, UH, ABSENT, WHAT WE ARE NOT AWARE OF IS THE AGGREGATE POWER SUPPLY, THE POWER GENERATION ACROSS THE WHOLE STATE OF TEXAS.
THAT IS THE PIECE WE WOULD NOT KNOW ERCOT WOULD HAVE THEIR FINGER ON THAT PULSE AND NORRIS I'LL TURN THAT BACK TO YOU.
SO, AND I WOULD SAY ONE OF THE THINGS THAT COMPLICATED THE SITUATION IS THAT INITIAL ICE STORM.
SO WE WERE PREPARING THE WEEK BEFORE, EVEN THE WEEKEND BEFORE THE STORM, THE VERY WEEK BEFORE, SO THAT INITIAL ICE STORM, WE GOT OUR MESSAGING OUT ABOUT THIS ICE FORM.
WE GOT OUT WHAT WAS GOING TO HAPPEN WITH THIS ICE STORM AND THEN THE ICE STORM HIT.
AND THEN WE TALKED ABOUT OUR RESTORATION EFFORTS THAT WEEKEND AND THAT WEEKEND WE TALKED ABOUT OUR RESTORATION EFFORTS, BUT THEN WE STARTED TO TALK ABOUT THIS NEXT STORM THAT WAS COMING, AND WE DID OUR BEST TO GET THE WORD OUT THROUGH LIKE ALL THE, THE, THE CHANNELS THAT I MENTIONED BEFORE OUR VIRTUAL NEWS CONFERENCES, OUR EMAIL TO ALL OF THE CITY OF AUSTIN UTILITIES CUSTOMERS ARE, YOU KNOW, WE WERE READY TO GO WHEN THE EAS WERE ISSUED, WE CAN ALWAYS LOOK TO DO BETTER.
WE CAN ALWAYS LOOK TO SEE WHERE WE CAN PARTNER MORE WITH DIFFERENT IN THE COMMUNITY.
AND WE'LL CERTAINLY BE TAKING A CLOSER LOOK AT THAT, BUT I THINK THAT MIGHT'VE COMPLICATED THINGS, BUT THAT INITIAL ICE STORM.
AND I THINK THERE MIGHT'VE BEEN SOME CONFUSION ABOUT, OH, I ALREADY HEARD ABOUT THIS.
I'M ALREADY KNOW THERE'S ANOTHER STORM COMING THAT STORM THAT LASTED THE ENTIRE WEEK.
SO I THINK THAT, THAT COMPLICATED THINGS AS WELL THERE, HI, I'M STEVE MEMBERS, ANY QUESTIONS? OKAY.
I'LL SAY A QUICK FOLLOW-UP IN TERMS OF THE, THIS IS SHAMED, UH, THE COMMISSIONER AGAIN.
UM, SO YEAH, JUST TO PUT, JUST PUT THE IDEA OUT THERE IN TERMS OF RAPID EMERGENCY RESPONSE OR, YOU KNOW, ONCE THIS BECAME AN EMERGENCY SITUATION AND GETTING IT OUT, GETTING THE INFORMATION OUT TO COMMUNITY ORGANIZATIONS AND NONPROFITS, PARTNERS, WHATEVER, UH, ENTITY, UH, I THINK THE PLUS ONE PROGRAM WOULD BE A GREAT PLACE TO START, I THINK, ANY PARTICIPANTS OR, UM, W WHATEVER THEIR, THEIR TITLE IS IN THAT PROGRAM THAT ARE PARTNERED WITH AUSTIN ENERGY, UM, IN AN EMERGENCY LIKE THIS.
SO IT WOULD MAKE A LOT OF SENSE TO ME TO, TO NOTIFY EVERY CONTACT IN EACH OF THOSE PARTNERS THAT THERE'S, THIS EMERGENCY NEED TO PASS ON XYZ INFORMATION TO, UH, TO YOUR, UH, NETWORK OR, UH, YOU KNOW, THE PEOPLE YOU SERVE, ET CETERA.
THANK YOU, COMMISSIONER JOHNSON.
WE WILL DEFINITELY LOOK INTO DOING MORE OF THAT.
ANYONE FROM THE, OH, SORRY, UC.
IF NO ONE FROM OUR SIDE, I HAD JUST, UH, ONE QUICK COMMENT FOR YOU.
UM, I THINK AUSTIN ENERGY DOES PROBABLY A BETTER JOB THAN MOST, UM, IN TRYING NOT TO USE, UH, TECHNICAL ENERGY SPEAK.
UM, UH, YOU KNOW, I THINK WE SAW SOME, SOME COMMUNICATIONS FROM, YOU KNOW, THE GRID OPERATOR OR COD, WHICH MAKES SENSE, BECAUSE THAT IS WHAT THAT IS.
THEIR BUSINESS IS HIGHLY TECHNICAL.
UM, BUT YOU KNOW, UM, REGULAR FOLKS DON'T KNOW WHAT EDA THREE MEANS.
DON'T KNOW WHAT LOAD SHED MEANS.
DON'T KNOW, YOU KNOW, THERE'S A LOT OF TECHNICAL JARGON, UM, IN THE ENERGY INDUSTRY.
AND I THINK, UH, YOU KNOW, ONE THING THAT WE NEED TO FOCUS ON IS MAKING SURE THAT THE COMMUNICATIONS THAT ARE GOING OUT ARE CLEAR LOAD FED MEANS YOUR POWER'S GOING TO BE CUT OFF.
AND, YOU KNOW, I MEAN, YOU KNOW, IT NEEDS TO BE REALLY, REALLY CRYSTAL CLEAR.
UM, AND THEN ALSO ONE OTHER COMMENT ON THAT IS THIS, I'M CURIOUS IF THERE'S REALLY NO, AND COMMISSIONER TOTTLE MAY HAVE THOUGHTS ON THIS, BUT THERE'S ANY WAY TO DO SOME EDUCATION AROUND, UH, WHAT, HOW AUSTIN ENERGY IS SOMEWHAT UNIQUE IN THE ERCOT MARKET IN THAT WE ARE, WE ARE
[01:50:01]
NOT IN RETAIL COMPETITION.AND SO THOSE, THOSE, UM, CONSUMERS WHO WERE, WHO WERE GETTING THE, YOU KNOW, $18,000 RETAIL ELECTRIC BILLS, UM, KNEW THAT THAT WAS NOT GOING TO HAPPEN HERE.
AND, AND I THINK THERE WAS A LOT OF IMMEDIATE CONCERN WHEN SOME OF THOSE NEWS STORIES STARTED COMING OUT, THAT, YOU KNOW, WE WOULD SEE SOME PRESSURE, UM, IN OUR, IN OUR BILLS AND, AND WONDERING IF THERE'S SOME EDUCATION THAT AUSTIN ENERGY CAN DO.
AND I KNOW THAT YOU HAVE THE NOW, UM, AFTER THOSE STORIES CAME OUT, BUT, BUT SORT OF JUST ON AN ONGOING BASIS ABOUT HOW, HOW THE MARKET WORKS AND HOW AUSTIN ENERGY IS SITUATED AND, AND HOW CUSTOMERS ARE PROTECTED FROM, YOU KNOW, INDEX PRICING PLANS IN THAT WAY.
UM, THAT'S ALL CERTAINLY COMMISSIONER HOPKINS.
IF WE CAN DO THAT MORE, THAT THIS IS A COMPLICATED INDUSTRY, SORRY.
SO I THINK GOING BACK TO KAY'S QUESTION, AND I'M NOT SURE TO WHOM THIS WOULD GO, WHETHER IT'S SYDNEY OR TO WHOM, UM, I BELIEVE IT WAS VISTRA KURT MORGAN'S PRESENTATION.
WHAT HE SAID, WE CALLED THE GOVERNOR, WE CALLED ERCOT AND WE CALLED THE RAILROAD COMMISSION ON THE NINTH AND SAID AN EXTREMELY BAD STORM IS GOING TO HAPPEN.
AND THE PREPARATIONS THAT THE STATE HAS MADE APPEAR TO BE INSUFFICIENT.
SIMILARLY, JIM SPENCER, AND AN ARTICLE, I THINK YESTERDAY ABOUT HIS RETIREMENT SAID THAT HE BEGAN SOUNDING THE ALARM ABOUT THE SEVERITY OF THE STORM AT ABOUT THE SAME TIME.
AND IN YOUR ANSWER TO KAY'S QUESTION, I THINK YOU DIDN'T ANSWER FULLY HOW AWARE WERE YOU AT THAT POINT ABOUT THE, THE, UH, THE UPCOMING STORM AND THEN KAY, KAI.
I HAVE A FOLLOW-UP I THINK WE WERE PREPARING BY FEBRUARY 10TH AND 11TH FOR THAT BIG STORM.
WE HAD TO FOCUS ON THAT INITIAL FORM BIRTH, BUT WE KNEW BY THAT FEBRUARY 10TH AND 11TH, THAT THE NET A STORM WAS COMING ON ITS WAY.
AND THEN THE OTHER QUESTION, AND I WANT, THIS IS MOSTLY PARTIALLY, UH, TO GIVE A SHOUT OUT TO AUSTIN ENERGY, BUT ALSO TO ASK ABOUT PREPARATIONS, UM, IN THE MARCH 5TH, 2020 STATE CLIMATOLOGISTS REPORT, THE TEXAS CLIMATE FROM 1900 TO 2036, WHERE HE PROGNOSTICATE ABOUT THE NEXT 15 YEARS.
ONE OF THE THINGS THAT HE SAID IS THAT THE FUTURE IN THE NEXT 15 YEARS IS GOING TO BE SIGNIFICANTLY WORSE THAN IT HAS BEEN IN THE PAST.
AT ANY TIME IN THE LAST 120 YEARS, HE POINTS OUT THAT WE CAN EXPECT MANY MORE SEVERE WINTER STORMS, HEAT WAVES, HURRICANES, AND DROUGHT.
AND ONE OF THE THINGS I WANT TO GIVE YOU A SHOUT OUT ABOUT IS THE FACT THAT YOU ACTUALLY LOOK AT THE CLIMATE IN TERMS OF PLANNING, UNLIKE EVERY OTHER MAJOR UTILITY IN THE STATE OF TEXAS OR THE PUC OR THE RAILROAD COMMISSION.
AND THEN THE SECOND QUESTION, THE QUESTION HERE IS, ARE OUR PLANS ADEQUATE TO MEET STATE CLIMATOLOGIST REPORT OR THE PREDICTIONS OF DR.
KATHARINE HAYHOE IN HER 2019 REPORT TO THE CITY COUNCIL.
I DON'T KNOW HOW TO ANSWER THAT.
IF YOU LOOK AT ERCOT ITS MISSION, ITS PURPOSE, ITS DIRECTIVE, AND I SEE JACKIE'S ON IT HAS THE PLANNING.
UM, IT HAS THE PLANNING AUTHORITY, AND THAT IS A LOT OF WHAT YOU SPEAK TO AS TO DO WITH THE PLANNING AUTHORITY, FOR PLANNING, VERIZON, THE PLANNING RISK, UH, WEATHER FORECAST, WHAT THE FACILITATION OF THAT IS.
AND I'LL JUST, UH, WITH THAT JACKIE, UH, OUR GENERAL MANAGER, JACKIE, UH, I'LL TURN THAT OVER TO YOU.
I'LL JUST ADD TO THAT COMMISSIONER
[01:55:01]
SMITH THAT, YOU KNOW, I THINK THAT IS SOMETHING THAT WE CERTAINLY DO LOOK AT IN THE PLANNING EFFORT AND, AND WITH OUR STAKEHOLDERS ENGAGED IN THOSE PROCESSES.UM, AND IT IS CONCERNING THAT IF WE ARE THE ONES DOING THAT AND EVERYONE ELSE ISN'T WHAT IMPACT CAN WE REALLY HAVE, UM, IN TERMS OF THAT PREPAREDNESS.
BUT WHEN WE LOOK AT OUR AFTER ACTION REVIEW, WE'RE GOING TO CONSIDER RESILIENCE AND WE'RE GOING TO, UH, CONSIDER, UM, THE EXTREME, UH, THAT WE NEED TO BE PLANNING FOR AND TAKE THAT ALSO INTO CONSIDERATION AND BY OUR, IN OTHER INDUSTRY GROUPS, UM, WE WILL BE PART OF ASKING, UM, QUESTIONS AND, YOU KNOW, SEEKING TO GET, UH, INFORMATION AND, AND TO ALSO SHARE OUR CONCERNS AND HOPEFULLY ENGAGE WITH A BROADER AUDIENCE ON THAT.
BUT THOSE ARE VERY REAL CONCERNS.
AND, AND TODAY ARE WE PREPARED FOR THAT AS THE STATE? UM, I, I WOULD HAVE TO SAY AFTER EXPERIENCING THIS, THE ANSWER WAS NO.
AND WHAT DO WE NEED TO DO? WE NEED TO FIGURE THAT OUT.
I DON'T THINK WE KNOW THE ANSWERS TO THAT.
AND SO PART OF THE INVESTING TO GORY PROCESS THAT IS ALREADY STARTED, UH, THE THINGS THAT WE'RE GOING TO BE DOING, THEY'RE ALL GOING TO BE, UM, LOOKING AT ANSWERS AND, AND DIRECTION.
SO I THINK THAT IT'S IMPORTANT THAT WE ARE AT THE TABLE AND THAT WE ARE ASKING THOSE TOUGH QUESTIONS.
AND THANKS FOR THE QUALITY OF THE RESPONSE.
I, YOU ARE THE KIND OF PUBLIC SERVANT THAT I'M GLAD WE HAVE, AND I WISH YOU GODSPEED AND ASKING QUESTIONS.
IT WILL ALERT EVERYBODY ELSE TO HOW SIGNIFICANT THE THREATS GOING TO BE IN THE NEXT 15 YEARS.
ANYONE ELSE ON THE EMC SIDE LOOKS LIKE? NO.
WELL, I FORWARDED ON TO JEFF TO FORWARDS OF THE, UH, DOD REPORT.
UM, WHAT THE DEPARTMENT OF DEFENSE HAVE LOOKED AT IN TERMS OF CLIMATE RISKS TO THEIR OPERATIONS.
SOME OF THE THINGS IN THERE THAT ABSOLUTELY WE HAVE TO WORRY ABOUT, YOU KNOW, UM, DROUGHT AND HEAT AND SUCH, NOT SOME OF THE THINGS LIKE PERMAFROST MELTING ON THAT REGION, BUT THE REASON I SEPARATED THAT IT WAS AN EXAMPLE OF WHAT CREDIBLE ORGANIZATIONS HAVE LOOKED AT IN TERMS OF WHAT WOULD BE THE IMPACT.
AND SO I'D LOVE TO SEE WHATEVER MATERIAL IS ALREADY OUT THERE THAT WE CAN GET UP TO SPEED ON BECAUSE JACKIE IS EXACTLY CORRECT HER.
WE'RE HAVING TO INVENT A RESILIENT COMMUNITY AS WE GO HERE AND THE GOALPOSTS CAN BE MOVING TOO.
SO WE HAVE TO THINK ABOUT FURTHER AHEAD IN THOSE GOALPOSTS MOVE.
AND SO I THINK THAT THAT'S A CONCERN RESILIENCE AND ALSO DISASTER RECOVERY, BECAUSE THERE MAY BE DIFFERENT EVENTS.
I REMEMBER 20 SOMETHING YEARS AGO, WE HAD A TORNADO IN GERALD THAT KILLED 27 PEOPLE.
WE MAY HAVE OTHER EVENTS, YOU KNOW, I THINK OF HEAT AND DROUGHT FIRES THAT WE'VE GOT THE, UH, COLD WEATHER SNAPS.
UM, WE COULD HAVE TORNADIC ACTIVITIES ALSO.
SO THE RESILIENCE TO KEEP THE GRID UP.
AND THEN ALSO THINKING ABOUT HOW WE, IF WE DO HAVE SOME SERIES OF EVENTS, THE DISASTER RECOVERY PLAN, I'D LIKE TO GET A BASELINE OF THAT TO GET EDUCATED.
SO I CAN ASK MORE INTELLIGENT QUESTIONS FROM THERE.
I'M SEEING MEMBERS, ANY OTHER QUESTIONS? I DID HAVE ONE REALLY SPECIFIC QUESTION ON A COMMUNICATION, AND MAYBE THIS IS JUST PURELY FOR AUSTIN WATER, BUT I FORGET WHICH DAY IT WAS.
I WANT TO SAY MAYBE IT WAS WEDNESDAY, THERE WAS A NOTICE SENT OUT TO STOP DRIPPING YOUR PIPES.
AND, UM, YOU KNOW, I THINK THAT CAME BECAUSE THERE WERE PROBLEMS WITH THE WATER SYSTEM AND THEY WERE TRYING TO GET EVERYBODY TO CONSERVE WATER.
AND I GUESS MY QUESTION, SINCE IT WAS PRIMARILY A WATER THING WAS WHAT IS AUSTIN ENERGY WORKING WITH AUSTIN WATER? UM, THOSE KINDS OF COMMUNICATIONS, OR WAS THE WATER UTILITY
[02:00:01]
TOTALLY DOING THEIR OWN COMMUNICATIONS BECAUSE TELLING PEOPLE TO STOP DRIPPING YOUR PIPES WITH LIKE, I'M SURE AUSTIN ENERGY KNEW THAT LIKE PEOPLE WERE LITERALLY NOT OUT OF THE DARK IN TERMS OF LIKE THEIR ELECTRICITY COMING BACK ON AND THEN BEING ABLE TO HEAT THEIR HOMES.BUT THAT FELT LIKE, UM, I DUNNO, I DUNNO HOW MANY PEOPLE FOLLOWED THAT ADVICE, BUT, UM, YEAH.
SEEMED LIKE THE, MAYBE A MISGUIDED COMMUNICATION.
I THINK IT WAS A COMBINATION OF BOTH.
I THINK WE WERE AT THE AUSTIN ENERGY COMMUNICATIONS TEAM WAS PRIMARILY FOCUSED ON OUR, ON OUR ENERGY MESSAGING AND WHAT WE WERE DOING ON OUR END.
AND I THINK THE WATER SITUATION WAS JUST STARTING TO EVOLVE.
THEY WERE JUST STARTING TO GET THEIR, THEIR TEAM IN PLACE TO PREPARE FOR THE WATER EMERGENCY THAT WE FELL IN BOLD AND ARE STILL THINKING UNFOLDING RIGHT NOW.
UM, THEY KEPT US ABREAST OF KIND OF WHAT WAS GOING ON AND WE KEPT THEM ABREAST OF WHAT WE WERE DOING, BUT I THINK THERE CAN DEFINITELY BE MORE ROOM FOR IMPROVEMENT IN THE FUTURE ABOUT HOW WE WORK TOGETHER.
BUT I THINK AT THE TIME, I THINK IT WAS, IT WAS, IT WAS, IT WAS, THERE WAS A LOT GOING ON THAT WEEK.
AND SO I THINK WE WERE REALLY JUST FOCUSED ON OUR INDIVIDUAL DEPARTMENTS AT THAT TIME, BUT WE DID, BUT WE DID KEEP IN CONTACT WITH EACH OTHER AS BEST AS WE COULD.
UM, YEAH, I MEAN, HOPE, HOPEFULLY A LITTLE, UM, MAYBE MORE, MORE COMMUNICATION COORDINATION IN THE FUTURE.
UM, BUT I KNOW THAT Y'ALL WERE, WERE DOING THE BEST THAT YOU COULD AND, AND FRANKLY, DOING A LOT MORE THAN I THINK, UH, OTHER CUSTOMERS OUTSIDE OF AUSTIN PROBABLY EXPERIENCED.
UM, IT SEEMS THAT THE RMC, I THINK WE HAVE ASKED OUR QUESTIONS.
ANY OTHER UC MEMBERS WITH QUESTIONS DOESN'T LOOK LIKE IT.
UH, HOW ABOUT LET'S MOVE ON TO MR. OVERTON.
I AM CARRIE TO THE CHIEF CUSTOMER OFFICER.
UH, WE FIRMLY RECOGNIZE THE HARDSHIP PRESENTED BY THE STORM EVENTS AND THE IMPACT TO OUR CUSTOMERS AND THIS COMMUNITY.
UM, WE DO ASSURE YOU COMMISSIONERS, UM, AS WE HAVE WITH COUNCIL THAT WE ARE COMMITTED TO WORKING WITH YOU AND THE REST OF THE COMMUNITY FOR MAKING IMPROVEMENTS FROM LESSONS LEARNED WHILE WE ALSO PROVIDE, UH, MUCH OR REALLY AS MUCH RELIEF AS POSSIBLE.
UM, WE ARE AWARE THAT MANY OF CUSTOMERS AND I THINK, UH, COMMISSIONER HOPKINS, YOU, UM, YOU MENTIONED THIS AND THAT WAS CONCERNED ABOUT THE OUTSIDE REPORTS THAT THEY WERE HEARING ABOUT LARGE BILLS FIXE DUE TO VARIABLE PRICE CONTRACTS.
UM, HE PROVIDES STABLE AND AFFORDABLE RATES TO OUR CUSTOMERS.
OUR ELECTRIC UTILITY RATES ARE FIXED AND CHANGES MUST BE AUTHORIZED BY CITY COUNCIL.
SO WHAT'S IMPORTANT TO KNOW HERE IS THAT OUR CUSTOMERS WILL ONLY BE CHARGED FOR THE ELECTRICITY THAT THEY CONSUME OUTWARD, CONTINUING TO WORK WITH AUSTIN WATER, UH, AS THEY IMPLEMENTED SEVERAL ADDITIONAL RATE RELIEF MEASURES THAT WERE JUST RECENTLY APPROVED BY COUNCIL.
UM, AND ALL OF THOSE EFFORTS, INCLUDING WITH THE ONES THAT WE ARE PRESENTING OR ALL, UH, INTENDED TO MINIMIZE THE IMPACT OF THE STORM IMPACT ON TO OUR CUSTOMERS BUILD, UH, FOR THE ELECTRIC SIDE COUNCIL JUST APPROVED, UH, THE SUSPENSION OF ALL SEAL, A UTILITY, UH, LATE FEES ASSOCIATED WITH BUILDING, UM, AND ALSO AS WELL, THEY PROVIDED, UH, PROVISIONS TO WEIGH THE $20 SERVICE INITIATION FEE FOR OUR IMPACTED RESIDENTIAL CUSTOMERS AND A $10 BILL CREDIT FOR 80 RESIDENTIAL CUSTOMERS AS AN OFFSET TO THE CUSTOMER SERVICE CHARGE.
YOU ALSO HAD, UM, EXTENDED OR EXPANDED WITH COUNCIL'S APPROVAL, UM, R PLUS ONE EMERGENCY FINANCIAL RELIEF DOLLARS UP TO A TUNE OF 10 MILLION, ADDITIONAL DOLLARS, 5 MILLION FROM AUSTIN WATER AND BOB MILLION FROM AUSTIN ENERGY THAT HAS NOW BEEN APPROVED.
AND WE'VE EXPANDED THE QUALIFICATIONS FOR CUSTOMERS WHO HAVE ALSO BEEN IMPACTED BY THESE, UH, BY THE STORM EVENT, UM, THEMSELVES, UH, NEXT AND AS, UM, OUR, UM, COMMUNICATIONS TEAM HAD JUST MENTIONED, WE HAD CONTINUED TO PUT OUT INFORMATION TO TELL CUSTOMERS HOW THEY CAN ACCESS THESE FUNDS, HOW THEY CAN ACTUALLY CONTACT US, WE'RE GOING TO CONTINUE THOSE EFFORTS.
UM, UM, AND WE'RE DOING THAT RESEARCH, UH, CURRENTLY.
SO CUSTOMERS WHO WANT TO FIND OUT MORE INFORMATION ABOUT HOW THEY CAN RECEIVE
[02:05:01]
BILL RELIEF, THEY CAN, UH, CONTACT US AT, UH, AUSTIN BEALE.COM OR THEY CAN ALSO GO ONLINE TO OUR COA UTILITIES.COM AND WE'VE LIFTED TWO NUMBERS THAT ARE VERY IMPORTANT FOR CUSTOMERS WHO WANT TO CONTACT US THROUGH ANY OF THOSE SERVICES.AND OUR MAIN UTILITY CONTACT CENTER IS THE (512) 494-9400 NUMBER, THE ONE SPECIFICALLY FOR THE AUSTIN BILL HELP FOR THE RELIEF.
UM, NOT ONLY, AND I WILL JUST MAYBE MAKE THIS ANNOUNCEMENT AS WELL FOR THE COVID 19 EVENTS, AS WELL AS THE STORM EVENTS, UM, IS THE OTHER NUMBER LISTED, UM, UH, NEXT TO AUSTIN BILL HELP CUSTOMERS ALSO, UM, WHO HAVE, UM, MORE QUESTIONS AND NEED, UM, FACE TO FACE INTERACTIONS WITH US AND HAVE SOMEBODY WALK THROUGH SOME OF THE ISSUES OR CONCERNS THAT THEY MIGHT HAVE.
THEY CAN GO IN, UM, WA ONE OF OUR WALK-IN CENTERS, UH, IT'S A NORTH AUSTIN UTILITY CUSTOMER SERVICE CENTER, AND IT'S LOCATED AT 87 16 RESEARCH BOULEVARD.
UM, AND WE'RE ALWAYS WILLING AND ABLE TO HELP OUR CUSTOMERS MAKE IT THROUGH THIS TIME.
WE'LL CONTINUE TO MAKE OURSELVES AVAILABLE.
AND I CAN TAKE ANY QUESTIONS THAT YOU HAVE JUST ABOUT THE, UH, THE NUMBER OF RELIEF THAT WE ARE PROVIDING TO OUR CUSTOMERS.
THANK YOU, MR. ROBERTSON, ANY QUESTIONS FROM THE UC? I DON'T THINK I HEAR ANY COMMISSIONER, WHAT I'M SEE MEMBERS, ANY QUESTIONS? LISA QUESTION.
UM, IT'S PART OF THIS CARE TEAM THAT YOU HAVE, IF SOMEBODY, FOR EXAMPLE, HAS TO REPLACE A WATER HEATER OR DO SOME SORT OF REPLACEMENT IN THEIR HOME, DOES YOUR TEAM HAVE THE ABILITY TO MAYBE POINT THEM TOWARDS SOME THAT REBATE PROGRAM OR OTHER PROGRAMS MIGHT, YOU KNOW, NOT ONLY GIVES THEM FINANCIAL ASSISTANCE, BUT ALSO HELP THEM POTENTIALLY UPGRADE TO A MORE ENERGY EFFICIENT SYSTEM? UH, MO MOST OF WHAT WE REVIEWED IN THAT AREA ON, ON THE PRIVATE SIDE OF THAT, WE WOULD DO MORE REFERRALS.
UH, WE DO HAVE PR UM, UM, OF OUR PROGRAMS, IF THEY'RE ELIGIBLE FOR THEM, THEY CAN, WE CAN PROVIDE THAT INFORMATION THEM THROUGH OUR, UH, THAT TELEPHONE NUMBER THAT I MENTIONED TO YOU AS UT UTILITIES.
UM, WE HAVE HAD SOME CUSTOMERS, SOME FILED CLAIMS ALREADY, BUT THOSE ARE ITEMS THAT THEY WOULD HAVE TO, UM, UH, TAKE UP, UM, PERSONALLY, BUT, UH, YOU KNOW, REPLACING THOSE WATER HEATERS, WORKING THROUGH THEIR INSURANCE COMPANIES, ET CETERA.
AND, UM, I THINK AUSTIN WATER, UM, WE CAN ALSO GET SOME ADDITIONAL INFORMATION WHERE THERE WERE, UM, PARTICULARLY AREAS IN THOSE CLAIMS WHERE AUSTIN WATER WOULD BE FACILITATING THOSE.
WE'LL PROVIDE ADDITIONAL INFORMATION OUT TO THE CITIZENS AS WELL, BUT, BUT VERY SPECIFICALLY OUR ROLE IS GOING TO BE MORE OF A REFERRAL, UH, ROLE TO MAKE SURE THE CUSTOMERS KNOW WHERE THEY CAN GO TO RECEIVE ADDITIONAL HELP.
I DON'T THINK ANYONE ON THE ADC SIDE HAD ANY MORE QUESTIONS, ANY OTHER RMC MEMBERS HAVE COMMISSIONERS? I DID HAVE ONE QUICK QUESTION, UM, ON THE BILL ASSISTANCE.
UM, CAN YOU HAVE ANY SENSE IF THE, THAT EXTRA AMOUNT ALLOCATED THE 10 MILLION, UM, YOU KNOW, IF THAT MEETS THE EXISTING NEED IN THE COMMUNITY, WAS THERE A, SOME ASSESSMENT DONE TO COME UP WITH THAT AMOUNT OR, UM, WELL, THE OVERALL ANSWER TO THE QUESTION, WE THINK IT WOULD GO A LONG WAY BECAUSE WE HAD TO, WE HAD TWO CRISIS THAT LED UP TO US EXPANDING THAT, AND ONE WAS THE EXISTING COVID 19 PANDEMIC THAT WAS UPON US.
AND THEN WE EXPANDED THAT DEFINITION TO INCLUDE THE STORMS. UH, WE DON'T KNOW, WE HAVE BEEN DOING A LOT OF OUTREACH AND COMMUNICATIONS AND USING OUR COMMUNITY PARTNERS TO HELP US WITH THAT.
UM, WE BELIEVE AS THE FIRST PART OF THE STORM COMES DOWN, PEOPLE WILL START NOTIFYING US.
UM, RIGHT NOW, UM, WE DO HAVE, UM, A GOOD AMOUNT OF MONEY, UH, TO DISTRIBUTE IN THAT FUNDS.
WE DON'T KNOW THE NUMBER, UM, UH, THE TOTAL NUMBER OF NEEDS THAT ARE OUT THERE ASSOCIATED WITH BILL ASSISTANCE.
UM, WILL, I MEAN, EACH MONTH TO THE 10 WE'VE BEEN, IT'S BEEN PROBABLY WE'VE BEEN PROVIDING ABOUT A MILLION DOLLARS
[02:10:01]
A MONTH.UM, PROBABLY A LOT, $1.3 MILLION A MONTH WORTH OF ASSISTANCE, BUT WE'RE JUST IN THE FIRST WEEK AFTER THE STORM HAD COMPLETED.
SO WE EXPECT TO SEE THAT NUMBER GO UP, UM, YOU KNOW, IN THE NEXT IN THE WEEKS TO COME.
UM, YEAH, I'M ASKING, UH, MY MOTHER-IN-LAW ACTUALLY, UH, PARTICIPATES THROUGH ONE OF THE ORGANIZATIONS DOING THOSE, UM, HOUSE VISITS, UH, TO HELP GET THAT MONEY OUT TO FOLKS IN NEED.
AND ONE OF THE THINGS THAT SHE HAS DESCRIBED IS, UM, BEING ABLE TO GIVE PEOPLE PARTIAL ASSISTANCE, BUT THEM STILL BEING LEFT WITH A PRETTY HEFTY BILL.
AND SO I DON'T KNOW HOW MUCH, UM, THERE'S, YOU KNOW, KIND OF A TWO WAY INFORMATION, BUT I WOULD ENCOURAGE, UM, AS MUCH KIND OF, I GUESS, DATA COLLECTION AS POSSIBLE.
SO, YOU KNOW, IF THOSE PEOPLE WHO ARE OUT THERE DOING THOSE HOUSE CALLS AND REALLY, UM, GETTING THAT DETAILED, UM, A LOT, JUST A LITTLE BIT, YEAH, FORMATION OF $200, WHICH, YOU KNOW, WHERE I CUT OFF, BUT I'M JUST ENCOURAGING SOME DATA COLLECTION WHERE IT'S POSSIBLE AS PART OF THAT PROGRAM.
SO YOU CAN ASSESS IF ME EXHIBITING THAT.
CERTAINLY, CERTAINLY WE WILL, UH, WE'LL CONTINUE TO KEEP THE DATA AS WE'RE TRACKING COMING FORWARD.
UM, I DID HEAR THAT COME THROUGH.
AND, UH, COMMISSIONER HOPKINS ALSO, LET ME JUST, UM, ADD WITH, UH, COMMISSIONER WHITE'S, UM, OVERALL, UM, STATEMENT, UM, IN A DIFFERENT, TO THE DOLLARS THAT WE HAVE, UM, WITH OUR PARTNERS IN PARTICULARLY THE ADDITIONAL DOLLARS THAT WILL BE AVAILABLE TO THE CITY.
WE ALSO, UM, HAD MENTIONED TO COUNCIL, UM, AS WE COME OUT OF THIS, THE DOLLARS, UM, THAT CUSTOMERS, OH, I'M ASSOCIATED WITH ANY, UM, YOU KNOW, DEBT GOING ON, WE'VE EXTENDED OUR REPAYMENT POLICY, UH, PROBABLY ABOUT THE FLEXIBLE, THE MOST FLEXIBLE THAT WE'VE EVER SEEN IT.
AND THAT IS, UM, WORKING WITH OUR CUSTOMERS UP TO 36 MONTHS, EVEN AFTER ALL OF THIS, UM, SORT OF SOCIETY TO MAKE SURE THAT WE'RE WORKING WITH THEM ON WAYS, NOT ONLY TO PROVIDE THE MONEY, THE FINANCIAL ASSISTANCE, BUT MAKE SURE THAT THEY CAN, UM, HAVE, UM, FLEXIBLE PAYMENT PLANS FOR UP TO THREE YEARS, UM, AFTER THIS PROCESS IS OVER.
THANK YOU FOR THAT ADDITIONAL INFORMATION.
I THINK THAT WRAPS UP QUESTIONS FOR YOU, MR. OVERSON, UM, MOVING ON TO OUR LAST BUT NOT LEAST PRESENTER HERE, MS. COOPER, GOOD AFTERNOON COMMISSIONERS.
I'M THE VICE PRESIDENT OF REGULATORY AFFAIRS AND CORPORATE COMMUNICATIONS.
AND I JUST WANTED TO CLOSE OUT THIS PRESENTATION QUICKLY BY GIVING YOU A HIGH LEVEL OVERVIEW OF SOME OF THE REGULATORY AND COMPLIANCE ACTIVITIES THAT WE HAVE GOING ON.
SO I PLEASE, I KNOW THAT MOST OF YOU ARE AWARE THAT AUSTIN ENERGY OPERATES IN A VERY HIGHLY REGULATED ENVIRONMENT.
AND SO FOR, UH, THE BULK OF SOME OF MY TEAM IS, IS REALLY JUST BEGINNING.
AND I JUST WANTED TO GO OVER THAT SORT OF BRIEFLY.
UM, WE'VE GOT, AS YOU CAN SEE, ON, ON THE, THE LEFT HAND SIDE OF THE SCREEN, I'VE GOT THE, THE FEDERAL PIECE OF IT.
I THINK THAT, UH, MOST FOLKS, UH, WHO LIVE IN TEXAS OR HAVE BEEN IN THE ERCOT MARKET THINK, WELL, GOSH, YOU KNOW, TEXAS ISN'T SUB ERCOT IS NOT SUBJECT TO FEDERAL REGULATION.
AND, UH, THAT'S ACTUALLY NOT TRUE WHEN IT COMES TO RELIABILITY.
SO THE FEDERAL ENERGY REGULATORY COMMISSION AND THE NORTH AMERICAN ELECTRIC RELIABILITY CORPORATION, UH, KNOWN AS FERC AND NERC, THEY HAVE ACTUALLY JUST BEGAN A JOINT INVESTIGATION OF THE EVENTS IMPACTING THE TEXAS GRID.
UH, FOLK HAS THE AUTHORITY TO ADOPT AND ENFORCE MANDATORY ELECTRIC RELIABILITY STANDARDS FOR THE BULK POWER SYSTEM.
AND THAT DOES INCLUDE ERCOT HERBS IS WHAT IS KNOWN AS THE ELECTRIC RELIABILITY ORGANIZATION, MORE ACRONYMS, RIGHT? THE ERO AND TEXAS ARI WORKS WITH NERC SPECIFICALLY TO MONITOR ELECTRIC GRID RELIABILITY IN THE ERCOT REGION.
AND SO WE WILL BE HAVING ONGOING COMPLIANCE ACTIVITIES WITH THESE ORGANIZATIONS.
UH, OF COURSE, IN THE CENTER, YOU SEE THAT WE'VE GOT, UH, OUR CITY, WE'VE GOT CITY COUNCIL, OUR GOVERNING BODY, AS WELL AS, UH, THESE TWO COMMISSIONS THAT WE WORK WITH.
AND SO WE WILL BE CONTINUING TO ENGAGE WITH CITY COUNCIL, UH, AND, AND THE AUC AND THE RMC AS, UH, AS WE, UH,
[02:15:01]
LOOK FURTHER INTO THE AFTER ACTION REVIEW AND ON THE STATE SIDE, AGAIN, I THINK MANY OF YOU ARE AWARE THAT THE TEXAS LEGISLATURE IS IN SESSION RIGHT NOW, AND THEY ARE LOOKING INTO THESE RECENT EVENTS, UH, AS BOTH THE HOUSE AND THE SENATE HELD HEARINGS.UM, I GUESS WEEK BEFORE LAST, AND THEY ARE STILL HAVING ADDITIONAL HEARINGS WILL BE ONGOING LOTS AND LOTS OF BILLS FILED WITH A VARIETY OF DIFFERENT WAYS AND IDEAS ON HOW TO RESTRUCTURE OR RESTRUCTURE THE PUC DIFFERENT KINDS OF THINGS.
AND WHILE THE BILL FILING DEADLINE IS, UH, FRIDAY, WE'RE, WE'RE SURE THAT WE WILL SEE LOTS OF AMENDMENTS AND OTHER THINGS AS WELL COME ABOUT.
SO, UH, ACT AUSTIN ENERGY IS ACTIVELY ENGAGING IN THOSE LEGISLATIVE HEARINGS AND ADVOCATING ON BEHALF OF OUR CUSTOMERS DURING THE LEGISLATIVE PROCESS.
AND OF COURSE, UM, WE'RE ALSO ENGAGED AT THE PUBLIC UTILITY COMMISSION OF TEXAS.
THERE'S STILL A LOT OF ONGOING PROCEEDINGS, AND WE WANT TO ENSURE THAT WE NEED ALL OF THE REGULATORY COMPLIANCE REQUIREMENTS AND PARTICIPATE IN THOSE POLICY DISCUSSIONS THAT COULD IMPACT AUSTIN ENERGY CUSTOMERS.
AND FINALLY, UH, AUSTIN ENERGY CONTINUES TO BE ENGAGED IN THE ERCOT STAKEHOLDER PROCESS TO FURTHER ASSESS THE EVENT AND IDENTIFY PROCESS IMPROVEMENTS.
AND WE WANT A TIMELY REC, UH, MAKE RECOMMEND RECOMMENDATIONS, UH, FOR, FOR DIFFERENT IDEAS AND SOLUTIONS AS THEY COME ACROSS.
SO NEEDLESS TO SAY, OUR REGULATORY PLATE IS FULL AND, UH, WE WILL CONTINUE TO KEEP YOU UPDATED ON DEVELOPMENTS.
AND I BELIEVE THAT CLOSES OUR PRESENTATION, UM, COMMISSIONER TUTTLE, OKAY.
PEEP UP ON THIS, UH, AS WE GO, BECAUSE, YOU KNOW, THERE WERE THE 2011 REPORT THAT CAME OUT IN AUGUST, 2011 FROM THE FEBRUARY, 2011.
AND SO WE'VE BEEN READING ABOUT GLENN HAGAR'S BILL AT THE TEXAS LEVEL THAT GOT WATERED DOWN.
IT DIDN'T REALLY DO ANYTHING BESIDES MAKE A PLAN THAT SUBMITTED, BUT AT THE SAME TIME, THERE'S THE FEDERAL LEVEL, BUT, AND DEREK HAD THAT REPORT AND THEN NO ONE REALLY DID ANYTHING THERE BESIDES TRYING TO GET PEOPLE TOGETHER FOR BEST PRACTICE CONVERSATIONS.
BUT IT SEEMS LIKE THERE'S PARALLEL REGULATORY AUTHORITY.
THE LEDGE CAN DO WHATEVER IT WANTS.
AND NERC HAS FEDERAL AUTHORITY, AS YOU WERE SAYING, WE'RE NOT INDEPENDENT OF THAT.
SO ARE, YOU KNOW, CAN YOU GIVE US A LAY OF THE LAND OF HOW THIS REALLY WORKS, WHERE NERC DROPPED THE BALL, NOTHING GOT REALLY DONE ON THE LEDGE AND SOME OF THIS BACKGROUND.
SO WE JUST DON'T HAVE AN AUGUST 20, 21 REPORT FROM NERC FOR WORK.
AND IT SAYS, OH, WE DIDN'T HAVE ANYTHING DONE IN 89, NOTHING DONE IN 2011.
UM, OH, BY THE WAY, HERE'S SOME RECOMMENDATIONS THAT PROBABLY NO ONE WITH ANY TEAMS WILL DO AGAIN IN 20 COUPLE MONTHS, YOU KNOW, I CAN'T SPEAK SPECIFICALLY TO WHY THERE WAS NOT A NERC STANDARD THAT WAS DEVELOPED AFTER THE 2011 REPORT.
UM, YOU KNOW, NERC IS A STAKEHOLDER DRIVEN PROCESS.
UH, AND YOU KNOW, AGAIN, I THINK PERHAPS THIS AS MR. SWEENEY POINTED OUT THERE COULD BE, YOU KNOW, SOME, THEY MAY HAVE GOTTEN, UM, KIND OF SIDELINED WITH DIFFERENCES IN LOCATION AND, AND DIFFERENT ISSUES THAT MAY HAVE IMPACTED A SPECIFIC COLD WEATHER, UH, EVENT WEATHERIZATION.
THAT BEING SAID, THERE WAS ALREADY A STANDARD UNDER DEVELOPMENT FOR COLD WEATHER.
SO IT SEEMS TO HAVE TAKEN THEM TWO YEARS TO, TO, TO KIND OF BRING IT BACK.
AND THAT WAS SOMETHING THAT WAS UNDER REVIEW.
AND SO WE'RE PARTICIPATING IN THAT AS WELL.
AND THEN, YOU KNOW, AS FAR AS WHETHER THE LEGISLATURE IMPLEMENTS, UH, YOU KNOW, CERTAINLY AFTER 2011, THERE WERE SOME, SOME REPORT REQUIREMENTS.
AND A LOT OF THAT ACTUALLY GOT IMPLEMENTED INTO ERCOT PROTOCOLS IN TERMS OF, OF, OF SUBMITTING WEATHERIZATION PLANS.
SO, YOU KNOW, SOMETIMES THINGS, UH, WE'LL, WE'LL GET A LOT OF ATTENTION AND THEN, YOU KNOW, PEOPLE GET FOCUSED ON, ON SOMETIMES ON THE NEXT ISSUE, OBVIOUSLY THIS EVENT, I THINK THE MAGNITUDE OF THIS EVENT, WE WILL BE DEALING WITH THIS.
AND I THINK WE WILL BE IMPLEMENTING A LOT OF CHANGES COMING FORTH.
UM, AND, AND, AND JUST LIKE IN 2011, YOU KNOW, THE LEGISLATURE'S IN SESSION, UH, WHEN THIS HAPPENED.
AND SO I, I CAN EXPECT THAT WE WILL SEE SOME ACTIVITY.
AND WE'VE ALSO HEARD THAT THERE MAY BE A SPECIAL SESSION BECAUSE THIS IS COMPLICATED STUFF TO FIGURE OUT.
IT'S NOT REALLY SOMETHING THAT THEY'RE JUST GOING TO BE ABLE TO, TO, TO WRITE A BILL IN THE NEXT FEW DAYS AND GET IT FILED BY FRIDAY.
UH, THIS IS THE KIND OF STUFF THAT I THINK TAKES A LOT OF THINKING.
AND SO WHILE THERE'S OBVIOUSLY A PUSH AND A RUSH TO GET THINGS SOLVED QUICKLY, YOU KNOW, IT'LL BE SUMMER AND THE 110 DEGREES BEFORE WE KNOW IT.
UM, YOU KNOW, I DO THINK ALL OF US STAKEHOLDERS DO WANT THEM TO BE DELIBERATE AND THOUGHTFUL SO THAT, YOU KNOW, WE GET GOOD OUTCOMES AND, AND, AND GOOD CHANGES THAT CAN REALLY BENEFIT ALL OF US.
[02:20:01]
THANK YOU.I THINK I SEE YOUR HAND UP, AND I JUST WANT TO POINT OUT THAT IT WAS 89, 2011, 2014, AND BY 2018, THOSE FIRST THREE OR FOUR, THE, UM, NERC PEOPLE RECOMMENDED THE STATE TAKE SOME ACTION.
IF REGULATORY AGENCIES DO SOMETHING BY 2018, THEY HAD HAP AND IN THEIR 2018 REPORT ON THE, ON THAT PARTICULAR STORM, AFTER THAT, THEY SAID, WE RECOMMEND THE LEGISLATURE MUST STEP IN AND TAKE ACTION TO REQUIRE THIS FROM THE REGULATORY AGENCY.
SO AFTER FOUR WARNINGS, NERC FINALLY SAID, THE LEGISLATURE HAS TO DO IT.
AND SO, TAMMY, AS YOU, UH, AS YOU USE THAT AS THE TOOL, AS YOU MIGHT IN THE, UH, IN THE RECOMMENDATIONS OF THE 2018 PAT HAD IT, BUT THE FINGER BACK WHERE IT BELONGS ON THE LEGISLATURE FOR THEIR FAILURE TO DO ANYTHING.
AND THANK YOU, AUSTIN ENERGY FOR HAVING DONE SOME COMMISSIONER WELDON.
THIS IS A VARIANT OF, UH, DAVE'S QUESTION, UH, ABOUT THE FINANCIAL IMPACT, UH, THROUGH THE PSA.
AND THAT MAY EVENTUALLY BE UPLIFTED TO US.
SO THE PUC, UH, MADE IT KNOWN THAT THEY'RE NOT GOING TO RECHARACTERIZE THE, THE, THE SO-CALLED OVERCHARGED PERIOD.
AND, UH, WE WILL BE INSULATED FROM THAT TO SOME DEGREE BECAUSE OF OUR OWN GENERATION ASSETS, BUT EVEN IF WE PRESUME SOME FRACTION OF THAT GETS, UH, SOCIALIZED THROUGH ERCOT TO BE ABSORBED, UH, THAT BECOMES A SUBSTANTIAL NUMBER.
AND I WAS JUST CURIOUS WHAT, HOW THAT'S BEEN TREATED IN PAST EVENTS OVER WHAT TIME PERIOD WOULD THAT BE AMATEURIZE UH, AND HOW WOULD IT BE A PORTION? SO IF WE LOOK AT 3.7% OF THAT IS KIND OF BEING A NOMINAL FRACTION OF THAT NUMBER THAT AUSTIN ENERGY, UH, MIGHT HAVE TO DEAL WITH LESS, UH, THE BENEFITS OF OUR OWN GENERATION ASSETS.
YOU KNOW, IT'S STILL A PERCENTAGE OF THAT WE CAN BE LOOKING AT, AND THAT BECOMES, OKAY, THAT BECOMES A SIGNIFICANT BILL TO ABSORB.
UH, WHAT'S HISTORY SAY IS THAT THAT'S TREATED, UH, YOU KNOW, MY UNDERSTANDING IS THAT IN THE PAST, WHEN THERE HAVE BEEN, UH, SOME UPLIFT CHARGES TO THE MARKET, IT'S OBVIOUSLY BEEN OF A LOT LESS, UH, MAGNITUDE.
AND SO I'M NOT SURE WE, WE KNOW KIND OF, LIKE WE WERE SAYING EARLIER WITH SOME OF THE FINANCIAL IMPLICATIONS, IT'S, IT'S REALLY TOO SOON TO TELL.
UM, AND, AND, YOU KNOW, WE'LL JUST KIND OF HAVE TO SEE HOW SOME OF THIS SHAKES OUT.
I WISH I COULD GIVE YOU MORE CERTAINTY AND A BETTER ANSWER, BUT HONESTLY, WE, WE JUST DON'T KNOW RIGHT NOW.
NO, I WAS JUST LOOKING BACK TO SEE IF THERE'S LIKE A WORST CASE SCENARIO WHERE, YOU KNOW, WHATEVER THE 2011 EVENT AFTER, YOU KNOW, WE HAD SOME AWARENESS, OR IF WE HAD A PARTICULAR UTILITY THAT HAD GONE BANKRUPT AND THEY HAD TO UPLIFT THOSE CHARGES, HOW THAT HAD BEEN DISTRIBUTED IN THE PAST.
I, I'M NOT SURE I HAVE THAT INFORMATION.
I KNOW SOMETIMES THAT'S THE RIGHT ANSWER.
I DON'T KNOW NOW, AND I'M NOT GOING TO MAKE UP AN ANSWER.
SO THAT'S, THAT'S FAIR RMC MEMBERS, ANY QUESTIONS? I HAVE A COUPLE, UM, I GUESS FIRST, UM, YOU KNOW, I THINK WE'VE ALL PROBABLY HEARD SOME COMMENTS FROM DIFFERENT, UH, UM, INDUSTRY SOURCES ABOUT, UH, WEATHERIZATION AND THAT YOUR PACKAGES MAYBE CAN'T BE MIXED WITH WINTER PACK PACKAGES.
AND THEN, UM, I GUESS I'M, I'M WONDERING, AND I GUESS, ESPECIALLY GIVEN THAT IT SEEMS LIKE AUSTIN ENERGY, UH, WAS AT LEAST PARTIALLY SUCCESSFUL WITH THE THERMAL GENERATOR GENERATING, UH, UNITS THAT YOU HAD CONTROL OF THE ENERGY SOURCES THAT YOU HAVE.
IF YOU HAVE ANY THOUGHTS ON THAT, LIKE, DO YOU VIEW IT AS, AS A REASONABLE, UH, TECHNOLOGICAL PATH FORWARD TO BOTH WINTERIZE AND BE PREPARED FOR SUMMER HEAT EVENTS? I CAN TAKE A STAB AT THAT.
WHITE, UM, YOU KNOW, I THINK THAT WE'RE GOING TO BE LOOKING AT THAT FULLY IN OUR AFTER ACTION REVIEW AND WE WILL, YOU KNOW, HAVE TO DO THOSE COSTS, ESTIMATES AND FIGURE OUT, YOU KNOW, WHAT
[02:25:01]
DOES MAKE SENSE, AND IS THERE A BUSINESS CASE THAT YOU CAN REALLY PUT TOGETHER AND THEN BRING FORWARD AND THEN HOW WOULD THE FUNDING MECHANISMS BE FOR, FOR DOING THAT? SO I WOULD SAY THAT WILL BE PART OF THE REVIEW AND THAT THERE'LL BE MORE TO COME.UM, AND THEN I GUESS JUST KIND OF IN A, UM, NO, ARE THE BILLS THAT YOU'RE LOOKING AT THAT HAVE BEEN FILED THAT YOU THINK ARE PARTICULARLY GOOD OR BAD SO FAR? YOU KNOW, I WOULD SAY WE HAVEN'T REALLY TAKEN A POSITION YET.
WE, WE ARE STILL REVIEWING, UH, THE BILLS AND KIND OF, YOU KNOW, GETTING A SENSE OF WHAT WE THINK MAY BE, UH, BENEFICIAL TO AUSTIN ENERGY AND, AND WHAT, YOU KNOW, MAY IS SOMETHING THAT WE KIND OF WANT TO WORK ON FURTHER ADVOCACY.
SO, UH, HONESTLY, AGAIN, I HATE TO KEEP SOUNDING LIKE A BROKEN RECORD, BUT, BUT IT IS A LITTLE TOO SOON FOR US TO KIND OF TELL, YOU KNOW, SOME, AND SOME OF THE BILLS I WOULD SAY ARE KIND OF MAYBE MORE LIKE SHELLS OR PLACEHOLDERS, YOU KNOW, THEY JUST HAVE A FEW KIND OF LINES IN THERE ABOUT ARE POT REFORM.
A LOT OF THEM ARE CHANGING THE BOARD STRUCTURE OR, YOU KNOW, DIFFERENT THINGS LIKE THAT WITH THE RAILROAD COMMISSION.
AND, AND I DON'T THINK THAT THEY'RE QUITE AS ROBUST AS WE'LL ACTUALLY GOING TO END UP SEEING AND LENGTHY AS, AS WILL PROBABLY BE NECESSARY TO IMPLEMENT SOME OF THE REFORMS THAT WE'VE HEARD TALKED ABOUT.
I THINK THAT MAKES, MAKES SENSE TO ME, I GUESS YOUR, YOUR JOB JUST GOT EXTREMELY INTERESTING.
ANY OTHER QUESTIONS FROM UC MEMBERS? OKAY.
IT LOOKS LIKE, UM, ANY, UH, MS. SERGEANT, WOULD YOU LIKE TO CLOSE THIS OUT? THANK YOU.
UM, YOU SEE CHAIR HOPKINS, UH, I REALLY APPRECIATE THE OPPORTUNITY TO SPEAK WITH YOU TODAY AND HAVE MY TEAM SHARE INFORMATION.
UM, YOU KNOW, I'VE SAID THAT THIS WAS, UM, IN HARDSHIP, IT, IT, IT TURNED INTO A HUMANITARIAN CRISIS AND IT'S VERY FRUSTRATING WHEN YOU ARE TRYING TO RESTORE POWER AND YOU ARE LIMITED IN WHAT YOU CAN DO.
AND SO I HAVE TO GIVE A BIG SHOUT OUT TO MY TEAM, AND I REALLY APPRECIATE THE COMMENTS THAT YOU ALL MADE.
I MEAN, THEY WERE WORKING IN, IN SOME VERY TREACHEROUS CONDITIONS, IN SOME CHALLENGING AREAS, UM, AND WORKING DILIGENTLY, NOT, YOU KNOW, NOT GIVING UP 24 SEVEN AND THEY WERE EXPERIENCING SOME OF THESE SAME HARDSHIPS IN THEIR OWN HOMES AND THEIR FAMILIES.
AND SO, UM, THEY PUT CUSTOMERS AND COMMUNITY FIRST, AND I CAN'T BE MORE PROUD OF MY TEAM FOR THEIR EFFORT.
AND WE ARE AN ORGANIZATION THAT IS FOCUSED ON CONTINUOUS IMPROVEMENT, UM, WANTING TO BE BETTER, WANTING TO GET BETTER, AND WE WILL TAKE THE LEARNINGS FROM THIS AND APPLY THEM, UM, SO THAT WE CAN BECOME THAT BETTER ORGANIZATION AND THE TEAM WE HAVE, UH, WE'LL WORK DILIGENTLY TO DO THAT.
SO THANK YOU FOR YOUR SUPPORT.
AND THANK YOU TO THE ENTIRE LEADERSHIP TEAM FOR BEING HERE, UM, AND, AND SPENDING THESE THREE HOURS WITH US TODAY.
I KNOW IT'S TIME CONSUMING, BUT I KNOW THAT, UM, BOTH OF THESE COMMISSIONS, UH, APPRECIATE THE TIME AND EFFORT THAT YOU PUT INTO BOTH THE PRESENTATION AND YOUR, AND YOUR TIME HERE TODAY AND ANSWERING QUESTIONS.
WE LOOK FORWARD TO WORKING WITH YOU, UM, YOU KNOW, MOVING FORWARD, COMMISSIONER WHITE.
I KNOW THAT IT'S PROBABLY NOT BEEN AN EASY, UH, FEW WEEKS OVER AT AUSTIN ENERGY, SO THANK YOU FOR YOUR SERVICE.
AND, UH, YEAH, I THINK WE ALL LOOK FORWARD TO WORKING HOPEFULLY COLLABORATIVELY TO COME UP WITH WHAT THE BEST SOLUTIONS ARE TO MITIGATE FUTURE PAIN AND SUFFERING.
I MOVED TO A JUROR WITHOUT OBJECTION.
[02:30:02]
AT FIRST NOTICE, JULIET