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[00:00:02]

OH, MY GOSH.

OKAY.

AB GO AHEAD AND MAKE US PUBLIC AND THEN LINE UP.

I'M GOING TO INTRODUCE THE MEETING AND THEN WE CAN LINE UP THE FOLKS FOR CITIZEN, WITH COMMUNICATION.

OKAY.

READY TO GO? THANKS AFTERNOON

[CALL TO ORDER]

EVERYBODY.

I'M LESLIE POOLE AND I'M THE CHAIR OF THE AUSTIN ENERGY UTILITY OVERSIGHT COMMITTEE.

AND I HAVE HERE TODAY, A QUORUM OF OUR CITY COUNCIL, UM, AT THIS POINT, AND I'M SURE OTHER FOLKS WILL BE JOINING US.

WE HAVE VICE CHAIR, COUNCIL MEMBER TOVO UM, I SEE COUNCIL MEMBER, RENTER, MARIA COUNCIL MEMBER, KITCHEN COUNCIL MEMBER, KELLY COUNCIL MEMBER ELLIS.

AND I SEE A COUPLE SQUARES WITH A COUNCIL MEMBER, HARPER, MADISON, AND THERE SHE IS.

AND COUNCIL MEMBER.

COSAR GREAT.

UM, WE HAVE A, UH, OKAY, SO I WILL CALL THIS MEETING TO ORDER.

IT IS WEDNESDAY, MARCH 30, ONE, 2021, A LITTLE BIT PAST ONE 30 IN THE AFTERNOON.

WE ARE DOING THIS BY WAY OF VIDEO CONFERENCE AND WE WILL TAKE OUR PUBLIC COMMENT.

FIRST.

THERE ARE THREE SPEAKERS SIGNED UP TO SPEAK TO US.

THEY EACH HAVE THREE MINUTES AND THEN WE WILL GO DIRECTLY TO EXECUTIVE SESSION TO TAKE UP TWO ITEMS. UM, AND I'LL READ THAT SCRIPT AT THE TIME.

THOSE ARE THE ITEMS THAT WE DIFFERED FROM LAST THURSDAY, AND THEN WE'LL COME BACK AND HAVE OUR AUSTIN ENERGY OVERSIGHT COMMITTEE MEETING.

AND THEN AS YOU KNOW, THIS IS A COMBINED MEETING WITH AUSTIN WATER OVERSIGHT COMMITTEE.

AND WHEN WE GET THROUGH THE AA ITEMS, THEN I'LL HAND OFF THE, UM, GAVEL AND THE AUTHORITIES TO, UH, THE CHAIR OF AUSTIN WATER COUNCIL MEMBER KITCHEN.

AND WE'RE GOING TO TRY TO STAY WITHIN A TWO-AND-A-HALF HOUR PLUS MAYBE INTO THREE HOURS MAX.

SO WE'LL TRY TO KEEP OURSELVES CONFINED TO THAT.

UM, ANYBODY HAVE ANYTHING TO OFFER AT THIS POINT BEFORE I BRING IN THE CITIZEN COMMUNICATION? YES.

COUNCILMEMBER ELLIS.

I DID JUST WANT TO BRIEFLY MENTION THAT I HAVE A THREE TO FOUR O'CLOCK MEETING THAT I JUST COULDN'T MOVE.

AND SO YOU'LL SEE ME LEAVE AND THEN COME BACK IF YOU'RE STILL GOING AT THAT POINT.

HAPPY TO HAVE YOU BACK WHEN YOU'RE ABLE TO.

AND THANKS FOR THE HEADS UP.

ANYBODY ELSE? UH, YES, COUNCILMAN, UH, MAYOR PRO TEM HARPER, MADISON.

I HAVE A SIMILAR OBLIGATION, BUT FOR A HALF HOUR.

SO I'LL LEAVE ANYTHING BACK IF WE'RE STILL LABORING AWAY.

YOU'RE WELCOME TO COME AND JOIN US BACK.

ALRIGHT.

UM, STAFF,

[Citizen Communication: General]

COULD WE GO AHEAD AND HAVE OUR FIRST OF THE THREE SPEAKERS I HAVE PAUL ROBBINS IS HE FIRST.

HEY, PAUL, WELCOME.

AND THANKS FOR DIALING IN.

YOU HAVE THREE MINUTES.

THANK YOU COUNSEL.

DURING THE HORRIBLE FREEZE IN FEBRUARY THAT KNOCKED OUT OVER 40% OF AUSTIN SELECTRIC CUSTOMERS OFFLINE AUSTIN ENERGY CONTINUED TO GENERATE POWER.

AUSTIN ACTUALLY WAS ABLE TO EXPORT MORE ELECTRICITY THAN WE USE DURING ALMOST ALL OF THE CRISIS PERIOD AT YOUR MARCH.

THIRD MEETING, AUSTIN ENERGY ACTUALLY SHOWED A GRAPH OF HOURLY GENERATION FOR EACH POWER SOURCE, INCLUDING GAS, COAL, NUCLEAR, WIND, AND SOLAR.

WHAT WAS INTERESTING AND ALARMING TO ME IS THAT ON AVERAGE, 80 TO 90% OF THE POWER GENERATED DURING THE CRISIS WAS FROM DISPATCHABLE AND POLLUTING POWER PLANTS.

AND AUSTIN IS PLANNING ON RETIRING OVER HALF OF THIS DISPATCHABLE CAPACITY.

IN THE NEXT TWO YEARS, AUSTIN MADE $54 MILLION IN PROFIT DURING THE CRISIS.

HOWEVER, IF THE CRISIS HAD OCCURRED TWO YEARS FROM NOW, AFTER THESE PLANTS, UH, ARE SCHEDULED TO BE RETIRED, WE VERY WELL COULD HAVE LOST MONEY.

AND MANY IN THE PUBLIC WOULD REVILE ENVIRONMENTALIST WHO RETIRED THESE PLANTS.

I AM IN FACT, AN ENVIRONMENTAL ACTIVIST.

I UNDERSTAND IN GREAT DETAIL, THE REASONS FOR RETIRING FOSSIL AND FISSILE FUEL.

HOWEVER, THIS CRUEL WEATHER EVENT HAS EXPOSED OUR VULNERABILITY TO THE LACK OF DISPATCHABLE CAPACITY.

WE HAVE NO DISPATCHABLE RENEWABLE CAPACITY AT THIS POINT AND NO PLAN TO DEVELOP IT.

TO MY KNOWLEDGE, WE HAVE NO FIRM POWER CONTRACT FOR CONVENTIONAL DISPATCHABLE CAPACITY WHEN AUSTIN'S PLANTS ARE RETIRED.

SO OUT OF AN ABUNDANCE OF CAUTION, I AM ASKING YOU TO TEMPORARILY DELAY THE PLANT RETIREMENTS UNTIL THE PROBLEM IS UNDERSTOOD AND RESOLVED.

I STRESS THE WORD TEMPORARY, BUT WE CANNOT BE SO SHROUDED IN OUR OWN POLITICAL CORRECTNESS AS TO IGNORE THE CHALLENGE WE HAVE BEEN DEALT.

[00:05:01]

MY FINAL POINT IS THAT IN PREPARING THE SPEECH I ASKED, I ASKED AUSTIN ENERGY FOR DOCUMENTATION FROM THE PRESENTATION IT MADE TO THE COUNCIL AT YOUR MARCH 3RD MEETINGS.

THE CHART THAT I REFERENCED, HOWEVER, THE UTILITY WILL NOT PROVIDE THIS IN A TIMELY MANNER.

CONSIDER THIS CHART THAT I NEED DOCUMENTATION FOR WAS PRINTED IN THE AUSTIN STATEMENT YET I'M NOT ALLOWED TO SEE THE NUMBERS FOR THE, THAT THIS CHART IS BASED ON IN A TIMELY MANNER TO UNDERSTATE THIS.

IT IS HARDLY A MODEL OF TRANSPARENT GOVERNMENT.

THANK YOU FOR YOUR ATTENTION.

THANKS, PAUL.

THE NEXT SPEAKER IS BILL.

OKAY.

BILL, ARE YOU WITH US? YES, I AM WELCOME.

YOU HAVE THREE MINUTES.

THANKS FOR CALLING IN TODAY.

OKAY.

FIRST I WANT TO THANK AUSTIN ENERGY FOR WEATHERIZING THE POWER PLANTS AND ENABLING US TO GET THROUGH THIS THING SAFELY.

AND SECOND, I WANT TO THANK ALL THE COUNCIL MEMBERS FOR THE INCREDIBLE WORK THEY DID DURING THE STORM.

AND I ESPECIALLY WANT TO THANK COUNCIL MEMBER TOBA, WHO IS ALWAYS RESPONSIVE TO ME AND HAS BEEN FOR MANY YEARS AND SHE'S EARTH KILLING GOLD STAR.

UH, ONE OF MY CONCERNS IS PREPAREDNESS FOR STORMS AND RESPONSIVENESS AFTER A STORM.

UH, I THINK I'M URGING YOU TO PREPARE AS IF WE ARE GOING TO HAVE ANOTHER POLAR VORTEX NEXT YEAR, AND WE VERY WELL COULD.

SO WHAT I THINK YOU NEED TO DO IS DEVELOP A, A VERY CLEAR PLAN THAT ENABLED ROLLING BLACKOUTS IN ORDER TO ENSURE THAT WE HAVE ROLLING BLACKOUT, PLEASE TAKE A LOOK AT THE LAYOUT OF YOUR DISTRIBUTION CIRCUITS AND SEE IF THERE'S A WAY TO RECONFIGURE THEM.

I'VE BEEN TOLD THAT THE SMART METERS MIGHT HELP.

UH, THERE WERE TOO MANY AREAS OF DOWNTOWN AND TOO MANY AREAS OF OTHER NEIGHBORHOODS THAT WERE, THAT WERE WIDER THAN THEY NEEDED TO BE, TO PROTECT THE CRITICAL INFRASTRUCTURE.

UH, I HAVE SENT YOU SOME WRITTEN, UH, PROPOSALS IN DETAIL ON THAT SUBJECT.

THE OTHER THING I WOULD SAY IS THAT AFTER THE STORM TREES, TREES, TREES, I MEAN, THAT'S ACTUALLY BEFORE THE STORM TREES, TREES, TREES, PLEASE MAKE SURE THAT YOU'RE UP TO DATE ON THE TREE TRIMMING AND THAT YOU STAY UP TO DATE ON THE TREE TRIMMING.

UH, THAT PROGRAM PROBLEM GOES BACK MANY YEARS AFTER THE STORM, WE DIDN'T HAVE ENOUGH SHELTERS, UH, PEOPLE, A DOZEN OR SO PEOPLE LOST ONE OR BOTH OF THEIR FEET AND SOME OF THEM WILL BE DISABLED FOR LIFE.

SO PLEASE TRY TO HELP ON THE SHELTERS, UH, WHAT, AND ALSO YOU CAN READ THE WRITTEN MATERIAL AND YOU'LL SEE THE REST OF MY CONCERNS THERE.

BUT ONE THING I WANTED TO MENTION IS I SPOKE WITH AUSTIN ENERGY ABOUT THE PROSPECT OF RATEPAYER CREDITS FOR THIS, UH, PROFIT.

AND IT'S MY UNDERSTANDING THAT IT'S POSSIBLE THAT AUSTIN ENERGY COULD CLEAR A PROFIT FROM THE HURACAN TRANSACTIONS SOMEWHERE IN THE NEIGHBORHOOD OF $50 MILLION, OR IT COULD BE EVEN TIRED.

IT WILL TAKE A FEW MONTHS TO UNDERSTAND EXACTLY WHAT THE FILE SETTLED THEM OUT WILL BE, BUT THAT WILL BE PASSED THROUGH TO THE CUSTOMERS THROUGH THE POWER SUPPLY ADJUSTMENT ON OUR UTILITY BILLS IN ORDER TO AVOID SPIKES.

AFTER THIS DISCOUNT IS GIVEN, I WOULD SUGGEST THAT YOU DO DO IT OVER SUMMER MONTHS BECAUSE SUMMER BILLS ARE HIGH ANYWAY.

AND IF YOU GIVE PEOPLE CREDITS DURING THE SUMMER, THEN THE WINTER RATES ARE ALWAYS LOWER ANYWAY, AND THEY WON'T SEE A SPIKE AFTER THE, AFTER THE, UH, REFUND CREDITS GO AWAY.

SO, UM, THANK YOU FOR ALL THE CHALLENGES THAT YOU'RE FACING.

UH, I KNOW IT'S A REALLY TOUGH DEAL.

UH, I DO NOT BELIEVE THAT THE ERCOT STANDARD OF 9,000 MEGAWATTS, UH, DOLLARS PER MEGAWATT HOUR CAN STAND IN THE FUTURE.

UH, ACCORDING TO THE WASHINGTON POST, THEY SOLD $50 BILLION WORTH OF ELECTRICITY IN ONE WEEK.

AND YOU WOULD HAVE TO ADD THE ENTIRE ANNUAL BUDGETS OF AUSTIN, DALLAS, HOUSTON, AND SAN ANTONIO, AND THEN MULTIPLY THAT NUMBER BY THREE IN ORDER TO COME CLOSE TO THAT $50 BILLION FIGURE.

WE, YOU CANNOT SUSTAIN THAT THE STATE CANNOT SUSTAIN THAT, SUSTAIN THAT.

SO YOU NEED TO URGE THE LEGISLATURE TO REFORM OR COTS PRICING MODEL.

THANK YOU VERY MUCH FOR YOUR TIME.

UH, CHAIR, CHAIR.

I THINK YOU'RE ON MUTE.

UM, I THINK THAT IT'S CHAIR TOBO HAS HER HAND UP, MR. OKEY, ARE YOU STILL ON THE LINE? WELL, I'LL JUST FOLLOW UP AND SAY, I JUST WANTED TO BE SURE THAT MR. OKI, UM, IS AWARE THAT THE COUNCIL PASSED A RESOLUTION THAT I HAD BROUGHT TO LOOK

[00:10:01]

AT AT VARIOUS ELEMENTS OF THE STORM AND, UH, THAT RESPONSE, I THINK DIRECTLY TO SOME OF HIS COMMENTS HERE TODAY, AS WELL AS SOME OF THE EMAILS HE SENT TO ALL OF US, THAT MANY OF THE TOPICS HE'S RAISED WILL BE SUBJECTS OF, OF REVIEW.

WELL, I APPRECIATE THAT.

AND THANKS AGAIN FOR ALL YOUR HARD WORK.

THAT'S GREAT.

ANYTHING ELSE? UH, OUR THIRD SPEAKER IS KIBO COHIBA.

ARE YOU THERE? I AM WELCOME.

YOU HAVE THREE MINUTES.

THANKS FOR CALLING IN.

THANK YOU.

YEAH, MY NAME IS CABLE WHITE, AND I'M CALLING TO MAKE SOME COMMENTS ON BEHALF OF PUBLIC CITIZEN.

UH, FIRST I GUESS I WILL START BY SAYING, I URGE THE COUNCIL TO STAY THE COURSE WITH THE SCHEDULED RETIREMENT OF FAYETTE AND DECKER.

UH, OBVIOUSLY THIS IS A SITUATION THAT, UM, YOU KNOW, WENT IN DIFFERENT DIRECTIONS FOR VARIOUS UTILITIES, UH, BASED ON HOW THEIR ENERGY SOURCES PROVIDED DURING THE STORM.

AND THAT IS IMPORTANT AND IT'S SOMETHING WE NEED TO KEEP OUR EYE ON, BUT OUR ENVIRONMENTAL COMMITMENTS ARE ALSO IMPORTANT.

AND I THINK WE NEED TO ADDRESS THE PROBLEM WITHOUT GOING BACKWARDS ON THOSE COMPONENTS.

AND I DO THINK THAT'S POSSIBLE.

AND THAT'S ONE AREA THAT I WANTED TO TALK ABOUT, AND THAT IS HOW TO MANAGE THESE OUT THESE OUTAGES, UH, IN A WAY THAT IS MORE EFFECTIVE AND MORE FAIR IN THE FUTURE.

AND I SAY THAT BECAUSE I THINK IT IS UNLIKELY THAT WE WILL NEVER HAVE OUTAGES AGAIN IN THE FUTURE.

OF COURSE WE WANT TO MINIMIZE THEM.

THE STATE WANTS TO MINIMIZE THEM, BUT THAT IS A TALL CHALLENGE GIVING, GIVEN THAT OUR CLIMATE IS CHANGING AND WE ARE GOING TO HAVE MORE, NOT LESS SEVERE WEATHER, AND WE NEED TO DO WHAT WE CAN TO PROTECT OUR POPULATION HERE IN AUSTIN, REGARDLESS OF WHAT THE REST OF THE STATE IS DOING.

AND WE DO HAVE THE LUXURY OF HAVING OUR OWN ELECTRIC UTILITY SO WE CAN TAKE SOME ACTIONS, UH, KIND OF, REGARDLESS OF WHAT THE STATE DOES SPECIFICALLY.

I THINK WE SHOULD BE LOOKING AT WAYS TO UTILIZE OUR SMART METERS TO MORE PRECISELY TURN ON AND OFF THOSE, UH, METERS THAT ARE MAYBE NOT CRITICAL LOAD, BUT ARE NEAR TO CRITICAL ONES.

UH, IN, FOR EXAMPLE, I HAD POWER THE WHOLE TIME DURING THE STORM WHILE OTHERS WERE FREEZING.

I WOULD'VE GLADLY HAD MY POWER OFF PART OF THE TIME SO THAT OTHERS COULD HAVE THEIR POWER ON PART OF THE TIME.

YES, THIS WILL REQUIRE AN INVESTMENT.

I BELIEVE IN SOFTWARE TO BE ABLE TO CONTROL THE SMART METERS IN A WAY THAT THEY ARE NOT CONTROLLED RIGHT NOW, RIGHT NOW THEY CAN BE TURNED OFF ONE AT A TIME.

IT SEEMS THAT IT IS PROBABLY POSSIBLE TO DO THEM IN BATCHES SO THAT OUTAGES COULD BE ROLLED FROM ONE NEIGHBORHOOD TO ANOTHER, EVEN IN THOSE TIGHT CIRCUMSTANCES LIKE WE EXPERIENCED IN FEBRUARY, THIS ED LEAVE WOULD BE MORE EFFECTIVE AND ULTIMATELY CHEAPER THAN TRYING TO SEGMENT OUT THOSE CIRCUITS ON A PHYSICAL BASIS.

AND I SAY THAT BECAUSE SEGMENTING OUT ON A PHYSICAL BASIS, OF COURSE REQUIRES UPGRADES TO PHYSICAL INFRASTRUCTURE AND WOULD RELY ON THOSE CRITICAL LOADS BEING IN THE SAME POINTS.

OTHERWISE YOU WOULD CONTINUALLY HAVE TO KEEP UPGRADING THOSE CIRCUITS TO KEEP THOSE CRITICAL LOADS ON THEIR OWN CIRCUIT.

THAT JUST DOESN'T SEEM LIKE A PRACTICAL SOLUTION TO ME IN A CITY THAT IS GROWING AND CHANGING IN THE WAY THAT AUSTIN IS.

AND WE ALREADY HAVE LEADERS DEPLOYED AT ALL OF OUR HOMES AND BUSINESSES.

SO LET'S MAKE THIS EXTRA INVESTMENT SO THAT WE CAN USE THAT INFRASTRUCTURE THAT WE HAVE IN A MORE EFFECTIVE WAY.

AND GIVEN THAT AUSTIN ENERGY DID JUST, UH, MAKE SOME PROFIT OFF OF THIS SITUATION.

AND THIS WOULD PERHAPS BE A GOOD WAY TO SPEND SOME OF THAT MONEY SO THAT WE CAN BE PREPARED FOR THE NEXT TIME AROUND.

SO THEY, EVEN IF THEY'RE MAKING A PROFIT PEOPLE AT THE SAME TIME ARE FREEZING IN THEIR HOMES, I WOULD LOOK FORWARD TO YOU ABOUT THIS ISSUE.

THANK YOU.

THANKS KIVA.

DOES ANYBODY HAVE ANYTHING TO SAY ABOUT THAT? I JUST WANTED TO LET YOU KNOW, WE ARE LOOKING AT BOTH THE CIRCUITRY AND I THINK THE, YOUR POINTS ABOUT SEGMENTATION ARE WELL-TAKEN AND, AND WE DEFINITELY WANT TO MOVE IN A DIRECTION THAT WOULD MAKE US MORE NIMBLE.

I THINK EVERYBODY IS, IS AGREED ON THAT.

THANKS KAY, BEFORE, AND WE'LL SEE WHERE WE CAN HELP US.

WE CAN MOVE IN WHERE WE CAN GO WITH THAT.

ALL RIGHT.

THAT CONCLUDES, UH, CITIZEN COMMUNICATION.

I ASSUME THERE'S NOBODY ELSE CALLING IN.

AND SO I WILL NOW, UH,

[Executive Session]

MOVE US INTO EXECUTIVE SESSION FOR AUSTIN UTILITY OVERSIGHT COMMITTEE.

THE COMMITTEE WILL NOW GO INTO CLOSED SESSION TO TAKE UP TWO ITEMS PURSUANT TO SECTIONS FIVE 51 DOT OH

[00:15:01]

SEVEN.

ONE OF THE GOVERNMENT CODE.

THE CITY COUNCIL WILL DISCUSS LEGAL ISSUES RELATED TO ITEM NUMBER SIX, WINTER STORM, URI, AND PURSUANT TO SECTIONS FIVE 51 DOT OH EIGHT, SIX OF GOVERNMENT CODE.

THE COUNCIL CITY COUNCIL WILL DISCUSS COMPETITIVE MATTERS RELATED TO ITEM NUMBER SEVEN, AUSTIN ENERGY GENERATION RESOURCE ISSUES.

IS THERE ANY OBJECTION TO GOING INTO EXECUTIVE SESSION ON THE ITEMS ANNOUNCED HEARING NONE, THE COMMITTEE WILL NOW GO INTO EXECUTIVE SESSION AND THEN WE WILL BE COMING OUT HERE TO FINISH UP THE REST OF THE MEETING AFTER THAT.

YES.

COUNCIL MEMBER KITCHEN.

JUST WANTED TO ASK THAT.

UM, AND I KNOW WE HAVE, WELL, I DON'T KNOW YOU, YOU PROBABLY NOT ABLE TO ESTIMATE WHEN WE WOULD COME OUT, BUT JUST TO GIVE PEOPLE AN IDEA, YOU SAID EARLIER, WHAT YOU WERE GONNA, YOU KNOW, STILL TAKE IT AND IT'S NOT HOW MANY QUESTIONS, BUT I IMAGINE WE SHOULD BE BACK OUT IN ABOUT 20, 30 MINUTES, MAYBE FOR MOST HARD, HARD TO NOW, BUT YES, THANKS.

SEE Y'ALL OVER ON THE OTHER CHAIN.

OKAY.

WE ARE NOW BACK OUT ON THE DAYAS IN OUR OPEN MEETING, UM, OUT OF CLOSED SESSION IN CLOSED SESSION, WE DISCUSSED LEGAL ISSUES RELATED TO ITEM SIX AND COMPETITIVE MATTERS RELATED TO ITEM SEVEN.

WE'RE NOW BACK IN OUR OPEN SESSION, PUBLIC MEETING, AND WE'LL GO RIGHT TO, UH, ITEM ONE IN THE AUSTIN ENERGY, UH, PORTION OF THIS MEETING.

AND I'M GOING TO GO REALLY FAST SO THAT WE CAN TRY TO GET ALL THE WORK IN, UH, UH, IN A CONSTRAINED PERIOD OF TIME.

ALL RIGHT, ITEM ONE,

[1. Approve the minutes of the February 10, 2021 Austm Energy Utility Oversight Committee meeting and the March 3, 2021 Special Called Austm Energy Utility Oversight Committee meeting.]

APPROVE THE MINUTES OF, UH, JUST THE MARCH THREE 2021 SPECIAL CALLED AUSTIN ENERGY UTILITY OVERSIGHT COMMITTEE MEETING BECAUSE THE FEBRUARY 10 MINUTES ARE NOT YET AVAILABLE.

IS THERE A MOTION FOR THIS? AND, UM, I SEE, UH, COUNCIL MEMBER KELLY, AND A SECOND PLEASE.

UH, COUNCIL MEMBER KITCHEN.

THANK YOU.

UM, UH, ALL IN FAVOR, PLEASE SAY AYE.

AND LET'S SEE, I'VE GOT, UH, I FROM, UH, COUNCIL MEMBER, KITCHEN AND CASAR AND TOWBOAT AND KELLY AND RENTER RHEA, AND ME, AND, UH, I DON'T SEE, UH, COUNCILMEMBER FONTEZ.

ALL RIGHT.

SO THAT IS HOW MANY WAS THAT? FOUR WHO WERE, UH, ON THE DYESS.

THANK YOU.

BRIEFING GENERAL MANAGERS

[2. General Manager's report: Upcoming recommendations for Council action Innovations, events and awards.]

REPORT UPCOMING RECOMMENDATIONS FOR COUNCIL ACTION, INNOVATION EVENTS AND AWARDS IS OUR GENERAL MANAGER SERGEANT HERE, BECKY.

THERE YOU ARE.

GREAT.

CAN YOU HELP US? CAN YOU HELP US BY COMPRESSING? SORRY.

THANK YOU VERY MUCH.

UM, WE WILL GET THROUGH, UM, OUR ITEMS AS QUICKLY AS WE CAN.

GOOD AFTERNOON CHAIR, VICE CHAIR AND COMMITTEE MEMBERS.

I'M JACKIE SERGEANT AUSTIN AREA, GENERAL MANAGER.

IF YOU PLEASE BRING UP THE PRESENTATION.

THANK YOU.

IN ADDITION TO MY REPORT, UH, VICE-PRESIDENT OF POWER PRODUCTION, PAT SWEENEY WILL PROVIDE THE DECKER CREEK POWER STATION, WORKFORCE PLANNING, ERICA BEERS, BACH VICE PRESIDENT OF MARKET OPERATIONS, RESEARCH PLANNING, ADAM MCELROY, FINANCE DIRECTOR, AND, UH, RISK, UM, AND MARKETS AND TOM PEERPOINT VICE-PRESIDENT ELECTRIC SYSTEM ENGINEERING AND TECHNICAL SERVICE.

WE'LL PROVIDE A BRIEFING ON ENERGY MARKET ECONOMICS AND THE TEXAS REGULATORY FRAMEWORK.

HOW THE POWER SUPPLY ADJUSTMENT WORKS AND CIRCUIT SEGMENTATION.

NEXT SLIDE, PLEASE.

AS, UM, AS I TYPICALLY DO, I WANT TO BRIEF THE COMMITTEE ON AUSTIN, NEW UPCOMING RECOMMENDATIONS FOR COUNCIL ACTION.

THE FIRST ITEM IS A FIVE-YEAR CONTRACT WITH KBS ELECTRICAL DISTRIBUTORS FOR NETWORK DETECTORS, NOT TO EXCEED $10 MILLION.

THIS EQUIPMENT IS NECESSARY FOR USE IN OUR DOWNTOWN NETWORK, WHICH IS DESIGNED TO PROVIDE MAXIMUM SERVICE CONTINUITY.

AND I SAID TO DENSITY SERVICE AREA, THE NEXT ITEM IS AN AMENDMENT TO THE EXISTING CONTRACT WITH MASTEC NORTH AMERICA FOR CONTINUED UNDERGROUND TRANSMISSION AND DISTRIBUTION ELECTRICAL SERVICES ARE REVISED TOTAL CONTRACT AMOUNT, NOT TO EXCEED $72 MILLION.

ANOTHER UPCOMING CONTRACT IS A FIVE-YEAR CONTRACT WITH THE TREE EXPERT FOR VEGETATION MANAGEMENT SERVICES ON ENERGIZED TRANSMISSION LINES.

THESE ARE THE HIGH VOLTAGE LINES FOR A TOTAL CONTRACT UP TO $17.5 MILLION.

NEXT SLIDE, PLEASE.

NEXT IS A FIVE-YEAR CONTRACT WITH KBS ELECTRICAL DISTRIBUTORS TO PROVIDE CIRCUIT BREAKERS UP OR NOT TO EXCEED AMOUNT OF $7 MILLION.

THIS CONTRACT WILL PROVIDE HIGH VOLTAGE CIRCUIT BREAKERS, WHICH ARE USED TO DE-ENERGIZE TRANSMISSION LINES FOR CONSTRUCTION AND MAINTENANCE PURPOSES AND DURING FAULT AND OUTAGE CONDITIONS.

THE NEXT ITEM IS AN AMENDMENT TO THE EXISTING CONTRACT WITH PIKE ELECTRIC FOR CONTINUED SUBSTATION INSTALLATION, REPAIR AND MAINTENANCE SERVICES

[00:20:01]

FOR $2 MILLION.

THIS WILL PROVIDE FOR CONTINUED AND ADDITIONAL SUBSTATION INSTALLATION AND MAINTENANCE SERVICES.

AND THE FINAL ITEM I'D LIKE TO BRIEF YOU ON IS AN AMENDMENT TO AN EXISTING CONTRACT WITH PIKE ENTERPRISES TO PROVIDE CONTINUED TRANSMISSION AND DISTRIBUTION ELECTRICAL SERVICES FOR $4 MILLION.

THIS WILL ALLOW AUSTIN ENERGY TO COMPLETE PLAN AND EMERGENCY TRANSMISSION AND DISTRIBUTION PROJECTS PROJECT TO INCREASED OVER THE COURSE OF THE CONTRACT AND REQUESTED AMENDMENT WILL ALLOW US TO INTERVIEW TO MAINTAIN SERVICES FOR THE DURATION.

NEXT SLIDE, PLEASE.

LASTLY, I'D LIKE TO MENTION THE 64TH ANNUAL AUSTIN ENERGY REGIONAL SCIENCE FEST, WHICH IS ONE OF TEXAS'S LARGEST REGIONAL SCIENCE FAIRS WITH STUDENTS FROM THIRD THROUGH 12TH GRADE.

IT ENCOURAGES AND, AND RESORT REWARDS, INNOVATIVE STUDENT RESEARCH, AND IT ALSO PROVIDES SCIENTISTS, ENGINEERS, AND OTHER PROFESSIONALS, A CHANCE TO VOLUNTEER IN THE COMMUNITY DUE TO THE PANDEMIC SCIENCE FEST WAS HELD VIRTUALLY.

AND THIS YEAR 826 STUDENTS PARTICIPATED IN THE ELEMENTARY DIVISION, 294 AND THE JUNIOR VISION.

AND THERE WERE 210 STUDENTS IN THE SENIOR DIVISION.

SIX PROJECTS WERE SELECTED TO ADVANCE DIRECTLY TO THE REGENERON INTERNATIONAL SCIENCE AND ENGINEERING FAIR, WHICH WILL TAKE PLACE IN MAY LIKE TO SAY THANK YOU TO ALL THE SPONSORS AND VOLUNTEERS FOR THEIR SUPPORT.

ALSO THE PARTICIPANTS AS ALWAYS.

IT'S GREAT TO CELEBRATE WITH THE YOUNG SCIENTIST OF AUSTIN AND THE SURROUNDING AREA.

AND WITH THAT, IT CONCLUDES MY REPORT.

I'LL PAUSE.

IF, IF THERE'S ANY QUESTIONS YOU MAY HAVE,

[3. Decker Creek Power Station Workforce Planning]

I THINK WE MIGHT JUST WANT TO REFER IT ON TO THE DECKER FIRE STATION, WORKFORCE PLANNING, ITEM NUMBER, TURN IT OVER TO PAT SWEENEY THEN PLEASE.

THANKS.

THANKS JACKIE IMPLEMENTATION.

IF WE HAVE TIME WHEN WE'RE DONE, I DO HAVE A TIME SENSITIVE ONE THAT'S RELATED TO THE VEGETATION MANAGEMENT THING.

IT SHOULD TIME.

OKAY.

HELLO COUNCIL MEMBERS.

GOOD AFTERNOON.

CAN YOU HEAR ME? YEP.

OKAY.

SO AGAIN, I'LL, I WILL BE BRIEF, UH, JUST A SHORT UPDATE ON OUR ACTIVITY WITH, UH, THE DECKER TRAN UH, WORKFORCE TRANSITION.

SO, UM, SINCE OUR LAST MEETINGS, ONE OF THE MAIN THINGS WE'VE BEEN FOCUSING ON IS JOB SHADOWING.

WE RECEIVED THE 20 REQUESTS FROM EMPLOYEES TO GO SHADOW OTHER JOB OPPORTUNITIES WITHIN AUSTIN ENERGY.

AND TODAY, UH, THROUGH MARCH, WE'VE GOT 11 OF THOSE THAT HAVE FINISHED UP.

UH, SO THAT'S ABOUT 50%.

WE'VE GOT, UH, ANOTHER SIX SCHEDULED IN APRIL.

SO WHEN WE WRAP UP APRIL, THAT'LL PUT US AT 90%.

AND SO THAT REMAINDER WE WOULD BE ADDRESSING IN, IN MAY AND BEYOND, UH, OBVIOUSLY THAT'S SUBJECT TO ADDITIONAL REQUESTS COMING IN, WHICH WILL WORK TO ACCOMMODATE.

SO THAT'S BEEN THE MAIN FOCUS.

WE CONTINUE WITH OUR MONTHLY COMMUNICATIONS.

WE HAD A MEETING EARLIER THIS WEEK, ACTUALLY.

UH, WE CONTINUE TO OFFER CAREER ASSESSMENTS, CAREER COACHING AND TRAINING OPPORTUNITIES.

UM, AND SO, UH, I THINK WE'VE, WE, FRANKLY, WE MAY HAVE HIT A PLATEAU ON THOSE.

A LOT OF FOLKS HAVE TAKEN ADVANTAGE OF THOSE AND THAT WE CONTINUE TO MAKE THEM AVAILABLE.

UH, BUT IN SUMMARY, I'D SAY THAT WE'RE MAKING GOOD PROGRESS.

WE'VE GOT SEVERAL TEAM MEMBERS THAT HAVE TAKEN NEW POSITIONS IN DIFFERENT PARTS OF THE ORGANIZATION.

UH, WE'VE HAD RETIREMENTS, AND I THINK WE'RE, WE'RE SEEING A TREND THAT WILL CONTINUE AND PUT US IN A GOOD POSITION AT THE TIME WE REACHED THE END POINT TO MINIMIZE THE IMPACT OF THE WORKFORCE.

SO WITH THAT, DO YOU HAVE ANY QUESTIONS? I'M HAPPY TO ANSWER QUESTIONS FOR MR. SCREENY.

ALISON, DO YOU WANT TO THANK YOU MR. SWEENEY AND LISTEN, DO YOU WANT TO GO AHEAD AND ASK YOUR QUESTION ON ASHLAND THIS POINT? SURE.

UM, THIS IS, UH, A QUESTION ABOUT, UM, TREE TRIMMING THAT RELATES TO THE STORM STUFF TOO.

UM, I WOULD LIKE TO KNOW HOW, UM, AUSTIN ENERGY PLANS TO ADDRESS THE TREE TRIMMINGS THAT WERE LEFT BEHIND AS A RESULT OF THE POWER RESTORATION EFFORTS.

UNDER TYPICAL PROCESSES, AES CONTRACTORS ARE RESPONSIBLE FOR CLEARING THE VEGETATION, UM, GIVEN THE EXTRAORDINARY NATURE OF THE WINTER STORM.

THEY, UM, THE TREE TRIMMINGS WERE JUST LEFT THERE AND I WANT TO KNOW WHAT WE'RE DOING TO CLEAR THE EASEMENTS, THIS DEAD VEGETATION PRESENTS A WILDFIRE RISK.

UM, AND NOBODY SEEMS TO KNOW WHO'S RESPONSIBLE FOR CLEARING IT.

MY DISTRICT WAS HIT PARTICULARLY BAD BY THE ICE STORM WITH THE TREE TRIMMINGS BY AUSTIN ENERGY.

AND WE, UM, ARE TRYING TO ADDRESS THIS.

AND I WANT TO MAKE SURE THAT THIS IS MS. HAS MISS SERGEANT'S ATTENTION COUNCIL MEMBER ALTAR.

I HEAR YOU.

I DO NOT HAVE THE ANSWER TO YOUR QUESTION TODAY, BUT WE WILL GET BACK TO YOU.

AND I WOULD JUST BROADLY ASK THAT IF, UM, ANY OF MY COLLEAGUES ARE EXPERIENCING SIMILAR ISSUES, WHETHER IT'S THE BRUSH FROM AUSTIN ENERGY OR FROM, UM, ON GREENWAYS AND OTHER SPACES WHERE WE HAVE A LOT OF THESE, UM, DEBRIS FROM THE STORM STILL THERE THAT IS JUST RIPE TO BE DRIED OUT AND FODDER FOR WILDFIRES.

UM, IF YOU ARE INTERESTED IN WORKING WITH US TO SEE IF WE CAN GET SOME FIXES TO

[00:25:01]

THIS, UH, PLEASE LET MY OFFICE KNOW.

I THINK THERE WAS SOME RELIANCE, I THINK THERE WAS ALSO SOME RELIANCE ON AUSTIN RESOURCE RECOVERY, PICKING UP THE EXTRA LIMBS AND SO FORTH.

AND, BUT, AND THAT HAS ALL THAT HAS BEEN HAPPENING AND IT IS SLOWING DOWN ALL OF THAT WORK AS WELL.

BUT YEAH, IT'S CLEARLY WE HAVEN'T MOVED THROUGH ALL OF THE DIDN'T SEEM TO BE HAPPENING FOR THE AUSTIN ENERGY LINES WORK.

AND THEN THERE'S A LOT OF SPACES THAT ARE NOT PRIVATE SPACES THAT PEOPLE ARE CALLING ON THAT ARE STILL HAVE A LOT OF DEBRIS THAT IS A WILDFIRE DANGER.

YEAH.

I THINK WHAT'S HAPPENING IS PEOPLE ARE BRAGGING IT TO THEIR CURB AND THAT'S, WHAT'S BEING PICKED UP.

BUT TO YOUR POINT, YES, THAT'S, THOSE ARE AREAS THAT HAVEN'T BEEN ADDRESSED YET.

ANYBODY ELSE WE'RE GOING TO MOVE ON TO THE INDUSTRY PRACTICE TO, UM, DURING STORM EVENTS OR THE UTILITIES TO PICK UP THE VEGETATION, THAT'S TRIM TO BE ABLE TO RESTORE POWER.

UM, AND WE WILL GET BACK TO YOU WITH, UM, WHAT, WHAT CAN BE DONE OR WHAT OPTIONS, OR MAYBE AFTER THIS EVENT.

OKAY, THANK YOU.

UM,

[4. Energy Market Economics, the Texas Regulatory Framework, and Customer Costs for Power Supply and circuit segmentation]

LET'S SEE, WE'RE GOING ON TO ITEM NUMBER FOUR, ENERGY MARKET ECONOMICS, TEXAS REGULATORY FRAMEWORK, AND CUSTOMER COSTS FOR POWER SUPPLY AND CIRCUIT CIRCUITRY.

AND THEN ITEM FIVE IS THE WINTER STORM EVENT UPDATES.

BOTH OF THESE WERE RELATED TO, UM, OUR WORK TO, UH, ASSESS AND BE BRIEFED ON, UH, RESPONSE TO WINTER STORM URI.

AND I WAS GONNA SAY, CONTINUING THIS PORTION IS A CONTINUATION OF, UH, THE, THE TOPIC ITEMS I HAD REQUESTED FROM MARCH 3RD.

GO AHEAD.

THANKS.

THAT'S GOOD AFTERNOON, COUNCIL MEMBERS.

MY NAME IS ERICA .

I'M VICE PRESIDENT OF ENERGY MARKET OPERATIONS AND RESOURCE PLANNING.

AND I'D LIKE TO WALK THROUGH SEVERAL SLIDES THAT SPEAK TO OUR ENERGY MARKETS, ECONOMICS, AS WELL AS A HIGH LEVEL DESCRIPTION OF THE REGULATORY FRAMEWORK SUPPORTING IT.

I'M JUST GOING TO TURN OFF MY VIDEO WHILE I GO THROUGH THESE SLIDES, AS IT MAKES THE TRANSMISSION A LITTLE BIT MORE CLEAN.

UM, BUT, UH, WE'LL TURN BACK ON WHEN, WHEN I'M DONE, IF YOU COULD GO TO THE NEXT SLIDE, PLEASE.

IN 2002, THE STATE DEREGULATED THE ELECTRIC INDUSTRY IN TEXAS, EXCEPT FOR TRANSMISSION, THE PUBLIC UTILITY COMMISSION OR PUC FOR SHORT OVERSEES, THE ELECTRIC MARKET STRUCTURE.

IT ADOPTS RULES ADDRESSING THE MARKET AND CAN REVERSE RULES ADOPTED BY THE ERCOT BOARD.

THE PUC HAS AUTHORITY OVER OR CUTS FINANCES, BUDGET AND OPERATIONS WITH TEXAS LEGISLATURE OVERSIGHT.

THE ERCOT BOARD IS COMPRISED OF 16 MEMBERS ESTABLISHED BY LAW.

THIS COMPOSITION IT'S CURRENTLY UNDER REVIEW BY THE STATE LEGISLATURE.

NEXT SLIDE PLEASE.

SO WHAT ABOUT OUR COT? IT'S THE ELECTRICAL LIABILITY COUNCIL OF TEXAS.

IT WAS FOUNDED IN 1970 WITH THE LEGISLATURE, ENACTING LAWS, GOVERNING ERCOT ACTIVITIES, OR CAUGHT AS A NONPROFIT WITH MEMBERS FROM SEVEN MARKET SEGMENTS.

AND THEY'RE LISTED HERE BEFORE YOU CONSUMERS.

CO-OPS INDEPENDENT GENERATORS, INDEPENDENT REPS, RETAIL, ELECTRIC PROVIDERS, IOUS, UM, AND THEN OUR SEGMENT, WHICH ARE THE MUNICIPALS OR THE MUNICIPAL, UM, UTILITIES.

UH, NEXT SLIDE PLEASE.

SO ERCOT PURPOSE REALLY COMES DOWN TO FOUR RESPONSIBILITIES.

THE PRIMARY RESPONSIBILITY BEING RELIABILITY SYSTEM RELIABILITY, OR BALANCING SUPPLY AND DEMAND GENERATION AND LOAD IS DONE BY AMONG OTHER THINGS, MAINTAINING THE GRID AT 60 HERTZ CONTINUOUSLY EVERY MINUTE OF EVERY DAY.

IN ADDITION, ERCOT IS THE FINANCIAL CONDUIT THAT SETTLES ALL WHOLESALE MARKET ACTIVITY FOR ALL MARKET PARTICIPANTS AND FOR ALL WHOLESALE PRODUCTS, SETTLING PRICES FOR THOUSANDS OF NODES ACROSS THE STATE IN ORDER TO PRICE, SUPPLY, AND PRICE DEMAND ON THE SYSTEM EVERY FIVE MINUTES OR COTS RESPONSIBLE FOR FACILITATING THE RETAIL SWITCHING PROCESS THAT GIVES CUSTOMER CHOICE AND DEREGULATED RETAIL MARKETS.

AND THEY ALSO PROVIDE AN OPEN ACCESS TO TRANSMISSION FOR DEVELOPMENT.

NEXT SLIDE PLEASE.

SO LET'S LOOK AT SOME ERCOT MECHANICS.

AUSTIN ENERGY'S CUSTOMERS HAVE INVESTED IN GENERATION AUSTIN ENERGY MUST OFFER THAT GENERATION INTO THE ERCOT MARKET FOR IT TO DISPATCH THE CITY'S GENERATION COMPETES WITH ALL THE OTHER GENERATION IN THE WHOLESALE MARKET.

OUR GENERATION DOES NOT SUPPLY OUR LOAD.

THE POWER OUR CUSTOMERS USE IS PURCHASED FROM ARCOT AT OUR LOAD ZONE.

NEXT SLIDE PLEASE.

SO HOW DO MARKET PARTICIPANTS LIKE AEI TAKE PART IN ERCOT? IE DOES NOT SELF-SUPPLY ITS GENERATION TO ITS

[00:30:01]

CUSTOMERS.

IT CANNOT DO SO.

WE CANNOT DO SO.

THE ERCOT MARKET IS A NODAL MARKET, WHICH REQUIRES SUPPLY OR GENERATION AND DEMAND OR LOAD TO BE EITHER INJECTED OR PULLED FROM THE GRID AT SPECIFIC NODES FOR THAT ENERGY TO BE VALUED OR PRICED ACCORDINGLY.

AES PARTICIPATION IN THE ERCOT MARKET IS NOT OPTIONAL TO SERVE OUR LOAD AND UTILIZE OUR GENERATION ASSETS.

WE MUST ENGAGE IN ERCOT INFRASTRUCTURE, OUR CUSTOMERS GENERATION COMPETES IN MARKETS, DEREGULATED WHOLESALE MARKET, ALONG WITH ALL THE OTHER GENERATION IN THE MARKET, ALL OF THOSE OTHER MARKET SEGMENTS YOU SAW LISTED IN A PREVIOUS SLIDE AUSTIN'S MARKET SEGMENT IS THE MUNI.

THE MUNICIPAL SEGMENT.

WE ARE A NON OPT-IN ENTITY OR A NOEY, WHICH MEANS WE HAVE NOT OFFERED INTO RETAIL COMPETITION.

WE COMPETE IN THE WHOLESALE MARKET, BUT NOT IN THE RETAIL MARKET.

SO WE ARE A LOAD SERVING ENTITY.

WE HAVE AN OBLIGATION TO SERVE OUR CUSTOMERS.

AND IN ORDER TO FULFILL THAT COMMITMENT, WE MUST PURCHASE ALL OF OUR CUSTOMERS POWER FROM THE GRID, WHICH IS THE ERCOT MARKET.

AND WE PURCHASE THAT POWER AT AUSTIN'S LOAD ZONE AT OUR LOAD ZONE PRICE, WHICH SETTLES EVERY 15 MINUTES.

AUSTIN COSTING CUSTOMERS HAVE ALSO INVESTED IN GENERATION, THEREFORE EIGHT YEARS, A GENERATOR IN ERCOT WHOLESALE MARKET.

WE OFFER OUR UNITS IN TO THE MARKET.

THESE UNITS, ALL TYPES, RENEWABLES, CONVENTIONAL GENERATION COMPETE AGAINST EACH OTHER THROUGH A PROCESS OF OFFER CURVES AND ECONOMIC DISPATCH.

IF, AND WHEN WE ARE SELECTED, WE'RE TOLD HOW MUCH THE MARKET WILL BUY AND WHAT VALUE THE MARKET IS PLACING ON THAT ENERGY.

THROUGH THE SETTLEMENT PRICE, IT RECEIVES AT ITS LOCATION.

OUR GENERATION DOES NOT SERVE OUR LOAD.

NONE OF IT DOES, BUT IT DOES BENEFIT OUR LOAD BY PROVIDING A PHYSICAL HEDGE IN THE WHOLESALE MARKET.

SO HOW DID THIS SERVE US DURING THE WINTER EVENT AND HOW WAS OUR PORTFOLIO PREPARED FOR IT? UM, NEXT SLIDE, PLEASE.

THIS GRAPH REPRESENTS ALL THE RENEWAL, ALL THE AVAILABLE GENERATION AUSTIN ENERGY HAD FOR THE MARKET FROM FEBRUARY 11TH TO FEBRUARY 19TH, AS WELL AS A FEW PURCHASES WE MADE IN THE COLOR BROWN FOR FURTHER PROTECTION.

PLEASE NOTE THAT THIS SLIDE IS DIFFERENT THAN A PREVIOUS SLIDE SHOWN TO COUNSEL EARLIER THIS MUCH, WHICH EARLIER THIS MONTH, WHICH LOOKS SIMILAR TO THIS ONE EIGHT, THE GRAPH SHOWN PREVIOUSLY ONLY DEPICTED THE AMOUNT OF GENERATION THAT WAS PRODUCED FROM AUSTIN.

ENERGY'S GENERATING ASSETS.

THIS GRAPH SHOWS THE ENTIRE AMOUNT OF GENERATION AVAILABLE IN OUR FLEET DURING THE EVENT.

IN OTHER WORDS, THIS GRAPH SHOWS YOU THE PORTFOLIOS SUPPLY OR CAPACITY DURING THE EVENT, THE GRAPH SHOWS GENERATION IN EXCESS OF FORECASTED LOAD.

IT ALSO SHOWS THAT THE EXCESS GENERATION WAS NOT DUE TO LOAD SHED.

THERE WAS GENERATION IN OUR FLEET THAT DID NOT COMPLETELY DISPATCH.

AND THAT WAS FOR SEVERAL REASONS.

I'M GOING TO WALK THROUGH THOSE REASONS BEFORE ERCOT ENTERED EEA ON MONDAY THE 15TH AND BEGAN TO SHED LOAD IN THE EARLY MORNING HOURS, GAS PRICES HAD ALREADY BEEN TRADING VERY HIGH OVER THE WEEKEND DUE TO FREEZE OFFS AND SUPPLY DISRUPTIONS IN THE WEST.

ALTHOUGH PRICES AT NIGHT OVER THE WEEKEND, ALTHOUGH PRICES AT NIGHT OVER THE WEEKEND WERE IN THE THOUSANDS.

WHEN NORMALLY THEY ARE IN THE TEENS, THEY DID NOT GET HIGH ENOUGH TO BRING ON ALL OF OUR GENERATION.

THIS WAS BEFORE LOAD SHED.

THIS IS REASON.

NUMBER ONE, FOR US NOT BEING AT FULL DISPATCH, EVEN IN THESE HIGH PRICES, REASON, NUMBER TWO, AS A LOAD SERVING ENTITY WHO IS 4% OF THE MARKET, WE ARE REQUIRED TO PROVIDE A SPECIFIC AMOUNT OF ANCILLARY SERVICES TO THE MARKET AND SLOW YOUR SERVICES OR THE RELIABILITY PRODUCTS NECESSARY TO SUPPORT THE TRANSMISSION OF ELECTRIC POWER FROM GENERATORS TO CONSUMERS, AUSTIN ENERGY TYPICALLY CARRIES OR TIES UP.

MOST OF THESE INSULARY SERVICES ON OUR GENERATING UNITS, AS OPPOSED TO BUYING THEM FROM THE MARKET.

THIS SERVE OUR CUSTOMERS WELL BECAUSE OUR REQUIREMENTS WERE CAUGHT.

THESE REQUIREMENTS WERE COSTING THE MARKET TWO AND A HALF TIMES.

THE PRICE OF ENERGY WHEN ENERGY WAS AT THE $9,000 TAX.

AND FINALLY REASON NUMBER THREE, THERE WERE MANY HOURS WHILE ERCOT WAS TRYING TO MAINTAIN STABILITY ON THE NETWORK AND BRING LOAD BACK ONTO THE SYSTEM THAT A PORTION OF OUR GENERATION UNITS WERE SITTING AT THE BOTTOM WAITING FOR, FOR DIRECTION, FROM ERCOT TO BRING OUR UNITS BACK UP, TO MEET DEMAND, A DELICATE BALANCE.

AUSTIN ENERGY'S GENERATION AND POSITIONS WERE WELL IN EXCESS OF OUR FORECASTED LOAD.

WE ALONG WITH OTHER GENERATORS SUFFERED TRIPS, BUT FOR MOST OF THE EVENT,

[00:35:01]

IT WASN'T LOW SHED THAT POSITIONED US FINANCIALLY.

IT WAS THAT WE HAD GENERATION FOR A MARKET THAT WAS IN SEVERE SHORT SUPPLY.

CAN YOU GO TO THE NEXT SLIDE PLEASE? SO AUSTIN ENERGY HAS BEEN MANAGING THE PRICE RISK IN OUR CUSTOMER'S PORTFOLIO.

FOR QUITE SOME TIME.

OUR HEDGING PROGRAM HAS OVERSIGHT A COMPETITIVE PROCESS FOR ACQUIRING ASSETS, DIVERSIFIED PORTFOLIO, AND AN ACTIVE PORTFOLIO MANAGEMENT PHILOSOPHY, WHICH HAS SERVED OUR COMMUNITY.

WELL, CAN YOU GO TO THE NEXT SLIDE PLEASE? AUSTIN ENERGY.

UM, THIS IS A SNAPSHOT OF HOW YOUR PORTFOLIO IS DIVERSIFIED THROUGHOUT THE STATE, BY SELECTING PROJECTS IN DIFFERENT REGIONS.

WE DECREASED DEPENDENCE ON A SPECIFIC REGION, AN INCREASED PROBABILITY OF AN OF EXPECTED OUTPUT.

CAN YOU GO TO THE NEXT SLIDE PLEASE? AUSTIN ENERGY'S HEDGING PROGRAM BEGAN MANAGING THE NATURAL GAS PRICE RISK IN THE FUEL CHARGE.

WHEN THE VOLATILITY IN THAT MARKET, THE NATURAL GAS MARKET CREATED MUCH UNCERTAINTY FOR OUR CUSTOMERS, OUR FUEL CHARGES.

NOW THE POWER SUPPLY ADJUSTMENT OR THE PSA, AND WE MANAGE THE PRICE RISK INHERENT IN THIS CHART.

THE POWER SUPPLY ADJUSTMENT IS A PASS THROUGH AND DOES NOT CONTRIBUTE TO THE GENERAL FUNDS TRANSFER.

THIS INCLUDES THE NODAL PRICE RISK AROUND OUR LOAD ZONE COSTS AND WHERE OUR CONSUMERS DEMAND POWER AS WELL AS OUR RESOURCES WHERE OUR RESOURCES INJECT POWER, THE CONGESTION ON THE NETWORK, FUEL PRICE, RISK, AND TRANSPORTATION OF THOSE FUELS.

NEXT SLIDE, PLEASE.

IF THERE ARE NO QUESTIONS I'D LIKE TO PASS THE BATON TO AUSTIN ENERGY'S DIRECTOR OF ENTERPRISE WIDE RISK MANAGEMENT, WHO WILL SPEAK TO YOU ABOUT THE PSA IN MORE DEPTH.

THANK YOU SO MUCH FOR YOUR TIME AND ATTENTION TODAY.

THANK YOU, MS. FAIR ROCK.

ANY QUESTIONS HERE FOR ERICA? ALL RIGHT.

LET'S LET'S MOVE ON TO THE NEXT SECTION.

GOOD AFTERNOON.

COUNCIL MEMBERS.

MY NAME IS ADAM MCELROY AND I'M AUSTIN.

ENERGY'S FINANCE DIRECTOR FOR RISK AND SETTLEMENTS.

IT'S MY PLEASURE TO SPEAK TO YOU TODAY TO PROVIDE SOME FURTHER DETAIL ON HOW THE ENERGY MARKETS ERICA HAS DESCRIBED, BECOME PART OF OUR CUSTOMERS' FINANCES THROUGH OUR BILLING AND OUR POWER SUPPLY ADJUSTMENT.

NEXT SLIDE PLEASE.

SO THE ENERGY MARKETS ERICA HAS DESCRIBED TODAY, CREATE POWER SUPPLY COSTS AND REVENUES FOR AUSTIN ENERGY.

AND THESE ARE PASSED THROUGH TO CUSTOMERS ON A DOLLAR FOR DOLLAR BASIS THROUGH THE POWER SUPPLY ADJUSTMENT CHARGE ON CUSTOMER BUILDS, ESA CASH FLOWS, ENCOMPASS COSTS AND REVENUES FROM OUR WHOLESALE POWER MARKET ACTIVITIES ON BEHALF OF OUR CUSTOMERS AND THE LARGEST COMPONENTS OF THESE AS ERICA LAID OUT ARE PURCHASES FOR CUSTOMER USAGE OR LOAD SALES INTO THE MARKET FROM OUR GENERATION FLEET AND PURCHASES FOR FUEL AND RENEWABLE ENERGY FOR THAT FLEET.

NEXT SLIDE PLEASE.

SO ON A DAILY BASIS, THESE PSA COST COMPONENTS ARE FAST MOVING AND DYNAMIC WITH FEATURES OF SUB HOURLY PRICE MOVEMENTS, SEASONAL MARKET ENVIRONMENTS WITH DISTINCT DYNAMICS, MULTIPLE RELATED MARKETS FROM ELECTRICITY TO RESERVES, TO FUELS, TO RENEWABLE RESOURCES AND THROUGHOUT THESE MARKETS, THERE'S AN HOURLY DEPENDENCE ON TEXAS IS COMPLEX WEATHER.

SO A KEY FOCUS OF AUSTIN ENERGY'S OPERATIONAL AND FINANCIAL PROCEDURES IS TO MITIGATE THIS DYNAMISM, TO OFFER CUSTOMERS STABLE AND AFFORDABLE RATES TO DO THIS.

THE UTILITY USES ITS DIVERSIFIED PORTFOLIO.

AS ERICA DESCRIBED A PHYSICAL GENERATION RESOURCES, A THOROUGH SUITE OF RISK MANAGEMENT ACTIVITIES AND POLICIES AND CASH MANAGEMENT FROM THE ORGANIZATION'S OWN FUNDS TO HELP PROVIDE CUSTOMERS AN ANNUAL PSA RATE WITH MEASURED CHANGES FROM YEAR TO YEAR.

NEXT SLIDE PLEASE.

SO CUSTOMERS EVENTUALLY EXPERIENCED ENERGY MARKET COSTS AS MONTHLY GSA CHARGES.

THESE ARE COLLECTED AS A PASS THROUGH CHARGE LEVIED ON PER KILOWATT HOUR ON CUSTOMER BILLS.

THE RATE FOR THESE CHARGES IS SET ONCE PER YEAR AND IS DETERMINED SO THAT IT RECOVERS NET ENERGY MARKET COSTS ACROSS THE FULL SYSTEM.

AND OVER THE 12 MONTHS OF THE RATE YEAR, THE PSA CHARGE IS A ONE-TO-ONE DOLLAR FOR DOLLAR PASS THROUGH OF THE NET ENERGY MARKET COSTS PER KILOWATT HOUR IN PARTICULAR WHERE OUR CUSTOMERS GENERATION PORTFOLIO EARNS REVENUE FROM SALES, THAT REVENUE OFFSETS COSTS DOLLAR FOR DOLLAR AS WELL.

SO IN PARTICULAR THAT THERE IS NO GENERAL FUND TRANSFER APPLIED TO PSA COSTS OR REVENUES.

THE PSA CHARGE CURRENTLY ACCOUNTS FOR ROUGHLY 31% OF RESIDENTIAL CUSTOMER BILLS WITH OTHER KEY BILLING COMPONENTS BEING BASE RATES AND REGULATORY CHARGES.

NEXT SLIDE PLEASE.

SO THE PSA RATE IS ADJUSTED ONCE PER YEAR AND IT IS DETERMINED SO THAT IT COLLECTS THE NET COST FOR MARKET ACTIVITY OVER ONE YEAR, AS ESTIMATED AT THE TIME OF GRADE SETTING, THE RATE IS ALSO SET SO THAT IT RETURNS OR COLLECTS ANY NON-ZERO PSA BALANCES

[00:40:01]

HELD BY THE UTILITY ON CUSTOMER'S BEHALF.

AT THE TIME OF RATE SETTING DAILY AND MONTHLY MOVEMENTS IN OUR SUPPLY, SETTLEMENTS ARE MANAGED BY AUSTIN ENERGY'S FUNDS AND SHORT-TERM CHANGES DID NOT IMMEDIATELY IMPACT CUSTOMER BUILDS.

THERE IS A MECHANISM BY WHICH IF THE BALANCE IN THE UTILITIES, PSA ACCOUNTS BECOMES LARGER THAN 10% OF AN ANNUAL PSA AMOUNT.

OFTEN ENERGY WORKS WITH COUNCIL TO ADJUST THE PSA RATE OFF CYCLE, TO BEGIN TO RETURN THE BALANCE OR COLLECTED DEFICIT FROM CUSTOMERS OVER THE FOLLOWING 12 MONTHS.

NEXT SLIDE PLEASE.

SO AUSTIN ENERGY'S CASH AND LIQUIDITY BALANCES HELPED MANAGE THE DAILY SETTLEMENTS IN THE ENERGY MARKETS.

SO THE AUSTIN ENERGY CAN TRANSACT IN THESE FAST MOVING DAILY MARKETS WHILE STILL OFFERING CUSTOMERS RATES THAT ARE COLLECTED MONTHLY SET ANNUALLY, AND THAT EXPERIENCED MEASURED THE CHANGES UTILITIES ACROSS TEXAS USE THEIR OWN FINANCIAL RESOURCES.

SIMILARLY ON BEHALF OF THEIR CUSTOMERS AFTER THE WINTER EVENT, THESE LIQUIDITY BALANCES AND GENERAL FINANCIAL HEALTH CAME TO BE ITEMS OF KEEN CONCERN FOR BOND HOLDERS AND RATINGS AGENCIES WHO EVALUATE THE ABILITY OF UTILITIES TO REMAIN FINANCIALLY SOUND AND TO MAKE TIMELY PAYMENTS ON THEIR BOND OBLIGATIONS THROUGHOUT FEBRUARY IS WINTER EVENT.

AUSTIN ENERGY'S OWN CASH BALANCES REMAIN HEALTHY GIVING SUPPORT TO THE STABLE RATES WE OFFER TO OUR CUSTOMERS.

NEXT SLIDE PLEASE.

SO BECAUSE AUSTIN ENERGY AND THE CITY OF AUSTIN PARTICIPATE IN THE BOND MARKETS, THE HAS TAKEN ON OBLIGATIONS TO MAKE BONDHOLDERS AWARE OF SIGNIFICANT FINANCIAL EVENTS AND RISKS TO MEET THIS OBLIGATION.

AFTER THE WINTER EVENT, AUSTIN ENERGY AND CITY OF AUSTIN TREASURY MADE A FINANCIAL DISCLOSURE TO THE BOND MARKET.

ON MARCH 8TH, THE DISCLOSURE DESCRIBED THE WEATHER EVENT AND UPDATED BOND HOLDERS ON AUSTIN ENERGY'S FINANCIAL POSITION DURING AND AFTER THE EVENT AS KEY POINTS OF THE DISCLOSURE, AUSTIN ENERGY AND TREASURY COMMUNICATED THAT AUSTIN ENERGY'S CASH LIQUIDITY POSITION REMAINED STRONG THROUGHOUT THE EVENT.

AND AFTERWARDS THAT DURING THE EVENT, AUSTIN ENERGY SUPPLIED GENERATION AND RESERVES IN ACCESS OF LOAD TO THE ERCOT MARKET.

AND THAT BECAUSE OF THIS, WE ESTIMATE THAT WHOLESALE MARKET REVENUE WILL OFFSET ALL OF MARKET COSTS FROM THE EVENT WHEN ALL THE COSTS ARE SETTLED IN THEIR FINAL FORM.

WE ALSO DISCLOSED AN IMPORTANT CAVEAT THAT SETTLEMENTS FOR ALL ACTIVITY DURING THAT WEEK ARE NOT YET COMPLETE AND MANY UNCERTAINTIES REMAIN IN THE DISCLOSURE.

WE NOTED THAT SOME OF THOSE UNCERTAINTIES HAVE THE POTENTIAL TO CHANGE AUSTIN.

ENERGY'S CUSTOMERS, ECONOMICS FROM A NET REVENUE POSITION TO A NET COST POSITION FOR THE EVENT.

NEXT SLIDE PLEASE.

SO TO CONCLUDE FOR TODAY ON THE PSA AUSTIN ENERGY MANAGERS, DYNAMIC DAILY ENERGY MARKETS TO PROVIDE STABLE, AFFORDABLE, AND ANNUALLY SET GSA RATES TO CUSTOMERS, PSA CHARGES AND REVENUES ARE PASSED THROUGH TO CUSTOMERS INFO WITH NO GENERAL FUND TRANSFER BY USING ITS OWN LIQUIDITY ON CUSTOMER'S BEHALF.

THE UTILITY MUST OCCASIONALLY GIVE GUIDANCE TO BOND MARKETS ON ITS FINANCIAL HEALTH AND AUSTIN ENERGY IS FINANCIALLY HEALTHY AFTER THE WINTER EVENT.

AND WE LOOK FORWARD TO CONTINUING TO OFFER STABLE RATES FOR OUR CUSTOMERS GOING FORWARD WITH THAT.

I'LL PAUSE THERE.

I'M HAPPY TO ANSWER ANY QUESTIONS OR TERM TURNS TO TOM PEERPOINT FOR OUR NEXT TOPIC.

ANY QUESTIONS, AND THEN MR. PIERPONT, WE WANT TO TRY, I WANT TO BE ABLE TO HAND THIS MEETING OVER TO OUR FRIENDS WITH AUSTIN WATER EVER SAID AT ABOUT THREE 30.

UM, DO YOU THINK WE'LL BE ABLE TO FIT INTO THAT TIMEFRAME MR. KERPLUNK ON THE LEFT SHIFT? WHY NOT? I CAN MOVE PRETTY QUICKLY, PROBABLY ONE SLIDE.

THANK YOU SO MUCH FIRE AWAY.

ALL RIGHT, THANKS.

I'M GOING TO TALK ABOUT LOW SHED, UM, UH, IN ALL UTILITIES, THE GENERATION AND THE LOAD HAVE TO REMAIN IN BALANCE.

UM, BASICALLY AT ALL TIMES, UM, A LOT OF CHAT IN THE CONTEXT OF ARCHIVE, UM, IS, IS A PROCESS WHERE WE, UM, SHUT OFF CUSTOMER LOAD, UM, TO MAINTAIN THAT BALANCE.

UM, AND THAT LOAD SHED IS, UM, ONLY DONE THROUGH OUR COD IT'S NOT, UM, IT'S NOT, WOULD NEVER BE CALLED BY AUSTIN ENERGY.

UM, WHEN, UH, ERCOT GOES INTO A LOAD SHED, UH, SITUATION, OUR, UM, SHARE AUSTIN ENERGY IS PROVIDED TO US AND WE, WE PUT IT IN A CONTROL CENTER SYSTEM.

WE ENTERED THE MOUNTAIN AND THE SYSTEM HAS AN AUTOMATED PROGRAM THAT STARTS ROTATING FRUIT FEEDERS, UM, TO GET DOWN TO THE NEEDED LEVEL.

UM, AND, AND JUST TALKING ABOUT FEEDERS REAL QUICK, EACH FEEDER TO THE SUBSTATION.

SO WE'RE TURNING OFF THE FEED OR AT THE SUBSTATION PETERS CAN GENERALLY SERVE THOUSANDS OF CUSTOMERS, UM, AND ALSO ACROSS MANY DIFFERENT, UH, COMMUNITIES.

[00:45:01]

UM, IT'S ALSO IMPORTANT TO POINT OUT THAT THE FEEDERS IN THE LIST MAY OR MAY NOT BE AVAILABLE IF THEY'RE SERVING CRITICAL LOADS OR THEY'RE USED FOR UNDER FREQUENCY, UM, PROTECTION.

UM, THE SECOND POINT WITH THIS IS THAT THE, THE LOW SHED LIST AT AUSTIN ENERGY WAS DESIGNED TO BE, UM, TO ALLOW A LOT OF ROTATION AND RESULT IN RELATIVELY SURE, UM, SHUT OFFS FOR CUSTOMERS, UNFORTUNATELY, UM, ON THE DAYS THAT ARE CAUGHT, CALLED FOR REDUCTIONS, THEY WERE SO DEEP, UM, AND THEY CONSUMED REALLY MOST OF THE LOAD SHED LISTS AND PREVENTED ANY ROTATION.

SO FOR THE AUTOMATED ROTATING LIST WHERE WE'RE LOOKING AT THE POTENTIAL WAYS TO POWER CRITICAL LOAD WHILE OTHERS RECYCLE, UM, AND MANY OF THESE POINTS HAVE BEEN BROUGHT UP BY, UH, BY VARIOUS STAKEHOLDERS IS, COULD INCLUDE SEGMENTING SECTIONALIZING, UM, OR EVEN RECONFIGURING FEEDERS WHERE FEASIBLE.

UM, ONE OF THE THINGS THAT WAS BROUGHT UP TODAY AND HAS BEEN BROUGHT UP IN MULTIPLE FORMS IS THE, UH, POSSIBILITY OF USING AUTOMATED METERING TYPE SOLUTIONS, UM, FOR INDIVIDUAL SHUTOFFS WHILE UNDER CUSTOMER STAY UP.

UM, WE WILL, AUSTIN ENERGY IS EXPLORING THIS WITH THE VENDOR.

THERE ARE SOME, UM, UH, SOME HURDLES THAT HAVE TO BE OVERCOME.

THIS INCLUDES THE COMMUNICATIONS AND THE ABILITY CAPABILITIES OF METERS TO ACTUALLY TURN OFF A LOAD OR NOT.

UM, AND THEN ANOTHER AFTER ACTIONS ITEMS, WE'RE LOOKING AT RESOURCES FROM ELECTRICAL POWER RESEARCH INSTITUTE, UM, YOU KNOW, TO LOOK AT WAYS WE COULD, UH, WE COULD BETTER DO LOAD SHED IN THE FUTURE.

UM, THERE'S ALSO OTHER TYPES OF LOAD SHED BESIDES THE ROTATING LIST.

THIS IS MOSTLY COMPRISED OF LARGER COMMERCIAL INDUSTRIAL CUSTOMERS, AND THOSE CUSTOMERS SIMPLY CAN'T BE CYCLED.

THERE'S NO WAY TO TURN OFF CARAMEL AND TURN THEM OFF.

IT JUST DOESN'T WORK.

UM, SO RIGHT NOW WE HAVE, WE HAVE TO CLOSELY COORDINATE WITH THESE, WITH THE LARGE CNI CUSTOMERS VIA PHONE, UM, TO, UH, TO HAVE THEM RAMP DOWN AND SHUT OFF.

AND THIS IS REQUIRED TO ENSURE SAFETY AT THEIR FACILITIES, UM, AND PREVENT DAMAGE.

UM, OUR AFTER ACTIONS, UH, FOR THE CNI CUSTOMERS IS WE WANT TO WORK WITH ERCOT AND CNI CUSTOMERS, UM, TO DEVELOP A MORE AUTOMATED PROGRAM, UH, THAT GETS US LOAD HELPS US MEET LOAD SHED REQUIREMENTS, BUT ALSO HELPS THEM, UH, MANAGE THEIR FACILITIES AT THE SAME TIME.

AND SO THAT IS IT ALL MUCH IF THERE'S ANY QUESTIONS.

ALL RIGHT.

ANY QUESTIONS FOR MR. PEERPOINT? YES.

COUNCILMEMBER TIMBER.

UM, YES.

THANK YOU, MR. PEERPOINT.

UM, I HAVE, UH, I HAVE A SERIES OF QUESTIONS ABOUT THIS, CAUSE I THINK THIS IS THE QUESTION THAT WE'RE ASKED THE MOST, REALLY WITH RELATIONSHIP TO THE WINTER STORM.

CAN YOU WALK ME BACK? I'M SORRY, I DIDN'T PULL UP MY PRESENTATION.

SO I'M GOING TO HAVE TO DO THAT.

UM, SINCE YOU JUST TOOK THAT LAST, THAT LAST, THAT ONE SLIDE DOWN, UH, CAN YOU TALK A LITTLE BIT ABOUT HOW, HOW THE ORIGINAL CIRCUITS WERE DESIGNED, UM, AND WHY THERE ARE RESIDENTIAL CUSTOMERS ON THOSE CIRCUITS? UM, IN ADDITION TO SOME OF THE CRITICAL FUNCTIONS LIKE HOSPITALS, SURE.

IT'S JUST A FUNCTION OF THE FEEDER, UM, YOU KNOW, AND HOW IT WAS LAID OUT THERE.

IT'S, IT'S ENTIRELY POSSIBLE THAT THERE'S HOSPITALS AND RESIDENTIAL CUSTOMERS ON THE SAME FEEDER.

UM, IT'S JUST HOW THE SYSTEM WAS CONSTRUCTED OVER THE YEARS.

UM, SO THE, SO THEY COULD BE INTERMIXED AND THAT'S, UH, THAT GOES BACK TO THE SLIDE.

THE, UM, LOOKING AT THE, AT THE AFTER ACTIONS, THE FIRST POINT IS LOOKING AT WAYS THAT WE MIGHT FURTHER SEGMENT, UM, YOU KNOW, OUT HOSPITALS, FOR INSTANCE, MAYBE PUT ONE A DEDICATED FEEDER.

IN SOME CASES, WESTLAKE MEDICAL CENTER MIGHT BE AN EXAMPLE.

AND, UM, UM, AND, AND THEN SEPARATE THE CRITICAL LOAD FROM THE REST OF THE FEEDER.

AND SO, YOU KNOW, ONE OF THE QUESTIONS THAT I KNOW OUR GENERAL MANAGER ADDRESS DURING A PRESS CONFERENCE WAS, AGAIN, A QUESTION THAT WE'VE BEEN ASKED A LOT BY OUR COO OUR CONSTITUENTS.

IF YOU HAVE THE ABILITY, IF AUSTIN ENERGY HAS THE ABILITY TO SHUT OFF MY POWER, IF I DON'T PAY MY BILL, WHY COULDN'T THEY HAVE USED THAT MECHANISM? UM, DURING THIS SITUATION, JUST TO, IN ESSENCE, TAKE DOWN, UH, RESIDENTIAL CUSTOMERS WHO WERE NOT SERVING CRITICAL FUNCTIONS WHO HAD POWER DURING THAT PERIOD OF TIME.

I KNOW SHE EXPLAINED THAT IT WASN'T POSSIBLE, BUT I, THE ANSWER WAS PRETTY TECHNICAL.

UM, AND SO I WOULD ASK IF YOU COULD JUST EXPLAIN WHY WASN'T IT POSSIBLE TO TAKE DOWN SOME OF THE CUSTOMERS WHO WERE RESIDENTIAL CUSTOMERS OR NON-CRITICAL BUSINESSES THAT WERE ON A CRITICAL CIRCUIT, UM, SO THAT YOU COULD HAVE BROUGHT UP OTHER WELL, A COUPLE, COUPLE ANSWERS IS WE ARE GOING TO FURTHER LOOK INTO THAT, BUT

[00:50:01]

THE, FOR A LOT OF CUSTOMERS IN A LOT OF CASES IN THE AMI SYSTEM IS NOT THERE YET.

WE ACTUALLY SHUT OFF CUSTOMERS, SEND OUT, SEND A TRUCK ROLL SO THAT, YOU KNOW, THE METER ACTUALLY GETS PULL.

AND THEN, UM, THE SECOND PART TO IT IS FOR AUTOMATED METERS, THE COMMUNICATIONS.

AND SO WE'RE TALKING TENS OF THOUSANDS OF DEVICES AND THE NETWORKS FOR AUTOMATED METERS, AREN'T DESIGNED FOR THAT KIND OF THROUGHPUT.

SO SENDING OUT TENS OF THOUSANDS OF COMMANDS, IF YOU WILL, THROUGH THESE NETWORKS TO AMI METERS, IS, IS SOMETHING WE'RE GOING TO HAVE TO LOOK AT THE DESIGN.

I MEAN, THE SHORT ANSWER IS THE COMMUNICATION SYSTEMS WEREN'T DESIGNED FOR THAT KIND OF CRUSHING.

BUT YEAH, I WOULD SAY THAT AS IT IS, WE ARE EXPLORING IT WITH THE VENDOR.

I MEAN, WE ARE TAKING THIS REQUEST CIGARETTE SPLIT, BUT JUST WHY IT WASN'T FEASIBLE DURING THIS STORM.

SORRY, WHY IT WASN'T FEASIBLE DURING THE STORM IS BECAUSE IN A LOT OF CASES THERE AREN'T AUTOMATED AUTOMATIC METERS, YOU WOULD HAVE NEEDED TO SEND OUT A TRUCK, WHICH OBVIOUSLY WASN'T EFFICIENT OR POSSIBLE.

UM, AND THEN FOR, FOR THOSE WHERE THERE, THERE ARE AUTOMATED METERS, UM, THE SYSTEM AT THIS POINT IS NOT DESIGNED TO HAVE DONE THE VOLUME THAT YOU WOULD HAVE NEEDED FOR THAT TO EVEN HAVE MADE A DIFFERENCE IN TERMS OF ALLOWING YOU ENOUGH, UH, LEVERAGE TO BRING BACK OTHER CUSTOMERS, GIVEN THE DEPTH OF EXACTLY AND SENDING ALL THOSE COMMANDS OUT TO SHUT THEM OFF, AND THEN MAKING SURE THAT WE COULD SEND ALL THOSE COMMANDS BACK OUT AGAIN, TO TURN THEM ALL BACK ON.

UM, THAT'S, THAT'S STUFF THAT WE'D HAVE TO BE ROCK SOLID ON.

OKAY, THANK YOU SO MUCH.

AND WE REALLY APPRECIATE IT, AND THIS IS GOOD INFORMATION AND IT MAY BE USEFUL FOR US TO GET THAT EXPLANATION IN A, IN A MEMO TOO.

I'D LOVE TO SEND THAT OUT BY WAY OF MY NEWSLETTER.

UM, AND I THINK EVERYBODY ELSE WOULD, I WOULD APPRECIATE THAT AS WELL.

I'M GOING TO MOVE US NOW, UH, UH, ALTOGETHER.

UH, WE'RE STILL HAVING THE JOINT MEETING, UH, OVER TO THE AUSTIN WATER OVERSIGHT COMMITTEE AND AT THREE 33, I'M GOING TO ADJOURN THE AUSTIN ENERGY UTILITY OVERSIGHT COMMITTEE IN THE PAST THE GAVEL ONTO THE CHAIR, A CHAIR KITCHEN WITH AUSTIN WATER OVERSIGHT TO CONTINUE THE CONVERSATION, UM, ON ALL OF THESE TOPICS.

UH, THANK YOU, TARA POOL.

UM, I'M GOING TO CALL TO ORDER THE MEETING WATER OVERSIGHT COMMITTEE AS PART OF THE AUSTIN ENERGY JOINT MEETING AT THREE 33.

UM, TODAY, JUST TO, JUST TO LAY OUT WHAT WE'RE DOING HERE WITH AUSTIN WATER, WE HAVE A HARD STOP AT FOUR 30.

SO WE HAVE A FOLLOW-UP, UH, PRESENTATION FROM AUSTIN WATER FOLLOW UP FROM OUR MEETING THAT WE HAD.

UM, I BELIEVE IT WAS MARCH 3RD, THE LAST MEETING THAT WE HAD.

SO TODAY WHAT WE'RE GONNA DO IS, UM, OUR STAFF IS GOING TO TALK TO US ABOUT, UM, THE FINANCIAL RELIEF ACHIEVED TO DATE ABOUT, UH, AUSTIN WATER'S RESILIENCE EFFORTS AND, UH, AND FURTHER UPDATES THAT WE BEGAN LAST TIME ON A WINTER STORM DEMAND ANALYSIS.

AND ALSO, I JUST WANT TO LET EVERYBODY KNOW THAT THE NEXT MEETING, UH, SO WE HAVE AN HOUR TODAY AND WE APPRECIATE CHAIR POOL FOR, UH, LETTING US, UH, BE PART OF THIS JOINT MEETING OF AUSTIN ENERGY.

THE NEXT MEETING OF AUSTIN WATER WILL BE ON APRIL 19TH.

THAT WILL BE A REGULAR MEETING OF AUSTIN WATER AT THAT MEETING TO BE ABLE TO DRILL DOWN INTO MORE DETAIL ON INFRASTRUCTURE AND COMMUNICATION ISSUES.

SO

[5. Austin Water February Winter Storm Event Updates]

TODAY I'M GOING TO TURN IT OVER TO STEVE AND HIS TEAM.

UM, I'M GOING TO ASK HIM TO GO AHEAD AND GO THROUGH HIS FULL PRESENTATION BEFORE WE STOP AND ASK QUESTIONS THAT WAY.

I LIKE TO TRY IT THAT WAY, BECAUSE THAT'LL GIVE US SOME MORE CONCENTRATED TIME AT THE END SO THAT WE CAN, UM, ASK QUESTIONS AND HAVE A CONVERSATION WITH HIM.

UH, SO MR. MASCARAS, WE HAVE A HARD STOP AT FOUR 30.

I KNOW YOU'VE GOT SOME VERY INTERESTING INFORMATION TO PROVIDE TO US.

SO JUST DO THAT IN, YOU KNOW, 40 MINUTES, IF YOU CAN, UM, LAST AND THEN WE'LL OPEN IT UP FOR CONVERSATION.

SO THANK YOU.

REMEMBER PULL, UH, SORRY TO INTERRUPT.

THIS IS HEATHER COOKS FROM AUSTIN WATER.

DID YOU WANT TO ADOPT MINUTES FIRST FROM THE LAST MEETING YOU WERE POSTED TO DO THAT, OR I'M SORRY, WE COUNCIL MEMBER, CHAIR KITCHEN.

I APOLOGIZE.

NO, I DON'T WANT TO DO THAT AT THIS TIME.

WE HAVE A SHORT PERIOD OF TIME AND I WANT TO JUST, I WANT US TO JUST GET MOVING ON THIS PRESENTATION.

GOT IT.

AND MY APOLOGIES.

THANK YOU.

WELL, THANK YOU, COUNCIL MEMBER, UH, UH, GREG DIRECTOR OF AUSTIN WATER.

I'LL GET US KICKED OFF TODAY.

AND SO, UH, UH, CHAIR, UM, KITCHEN OUTLINED, REALLY WHAT WE WANT TO DO TODAY, UH, GOING OVER SOME OF OUR RESILIENCY EFFORTS, UH, WE'VE HAD AN OPPORTUNITY TO EXAMINE, UH, SOME OF THE WATER USE.

IT'S IMPORTANT TO UNDERSTAND

[00:55:01]

WHERE ALL THE WATER WENT, UH, AS WE'RE COMING TO BETTER UNDERSTAND THIS EVENT.

AND SO WE WANT TO SHARE SOME OF THAT WITH YOU, BOTH AT A SYSTEM LEVEL, THE ENTIRE WATER SYSTEM, AS WELL AS SHARING, UH, SOME OF OUR AMI METER DATA.

WE HAVE ROUGHLY 4,000, UH, AMI METERS INSTALLED IN OUR PILOT PROJECT AND ARE GOING TO SHARE THAT WITH YOU TODAY, IN TERMS OF SOME OF THE EXPERIENCE WE HAD REVIEWING THAT DATA.

AND THEN, UH, THEN ON TO APRIL WHERE WE'LL DIVE DEEPER INTO COMMUNICATION STRATEGIES AND, UH, AND INFRASTRUCTURE, I WILL SAY ALSO OCEAN WATER, STAYING INVOLVED AT THE STATE LEVEL.

UM, UH, HERE LAST WEEK, I, UH, ATTENDED A MEETING WITH OTHER, UH, LARGE UTILITY WATER DIRECTORS ACROSS THE STATE WHERE WE SHARED, UH, EXPERIENCES AND SOME LESSONS LEARNED AND, AND ARE COMMITTED TO CONTINUING TO COMMUNICATE WITH EACH OTHER ON, ON DIFFERENT APPROACHES, UH, TO COMING TO TERMS WITH, UH, IMPROVED PERFORMANCE DURING A WINTER EVENT OF THIS NATURE.

AND ALSO WHAT THE STATE OF TEXAS THAT TCEQ IS.

UH, THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY IS ARRANGING FOR A SURVEYS OF WATER UTILITIES.

THEIR FINAL COUNT THEY'VE INDICATED OVER 2300 WATER UTILITIES ACROSS THE STATE, EXPERIENCED SOME FORM OF SIGNIFICANT DISRUPTION THROUGH THE WINTER STORM.

AND THEY'RE GOING TO BE SERVING THOSE GROUPS TO KIND OF LEARN MORE AND FIND OUT BEST PRACTICES, UH, AND, UH, AND, AND SHARING THAT INFORMATION.

SO, UH, WE'LL STAY ENGAGED AT ALL LEVELS AT THOSE LEVELS AND SHARE THAT WITH YOU.

UH, AND WITH THAT, I'D LIKE TO JUST KEEP FLOWING AND, UH, AND TURN IT OVER TO, UH, ASSISTANT DIRECTOR JOSEPH GONZALES.

AND HE'LL GIVE YOU A QUICK REVIEW OF WHERE WE ARE WITH FINANCIAL RELIEF MATTERS.

THANK YOU, DIRECTOR.

MISSOURI'S AGAIN, MY NAME IS JOSEPH CONSOLS, AUSTIN WATER ASSISTANT DIRECTOR OVER FINANCIAL SERVICES, AND I'LL BE PROVIDING A BRIEF OVERVIEW OF AUSTIN WATERS, FINANCIAL RELIEF EFFORTS IN RESPONSE TO THE FEBRUARY WINTER STORM.

NEXT SLIDE, PLEASE.

THANK YOU.

UM, SO OUR, OUR GOAL FROM THE VERY BEGINNING WAS TO AVOID POTENTIALLY HIGH BILLS FOR OUR CUSTOMERS AS A RESULT OF DRIPPING FAUCETS AND BURST PIPES DURING THE STORM EVENT.

AND AS A REMINDER EARLIER THIS MONTH, COUNCIL APPROVED AN ORDINANCE THAT PROVIDED A TEMPORARY RESIDENTIAL RATE REDUCTION THAT DROPPED THE VOLUME METRIC RATES FOR TWO YEARS, THREE TO 5.10 CENT PER THOUSAND GALLONS, AND ALSO REDUCE THE CHAIRED FIXED FEES FOR TIERS THREE THROUGH FIVE FOR THE TIER TWO RATE OF $3 AND 55 CENTS.

NOW THROUGH THE USE OF ESTIMATED READS FOR BILL CYCLES, UH, IMMEDIATELY FOLLOWING THE STORM EVENT, WE WERE ABLE TO PUSH ALMOST ALL HIGH RESIDENTIAL CONSUMPTION RESULTING FROM THE STORM INTO BILLING PERIODS BEGINNING MARCH 19TH, WHEN THE REDUCED RATES TOOK EFFECT TO ESSENTIALLY CAP PRESIDENTIAL BILLS AT 6,000 GALLONS OF CONSUMPTION, WHICH IS EQUIVALENT OF AROUND $37 FOR, UH, YOU KNOW, FOR WATER USE.

NOW, IN ADDITION, THE ORDINANCE, GRANTED AUSTIN WATER AUTHORITY TO STREAMLINE THE BILL ADJUSTMENT PROCESS AND TO PROVIDE ADJUSTMENTS TO COMMERCIAL AND MULTIFAMILY ACCOUNTS IMPACTED BY THE WINTER STORM EVENT.

NEXT SLIDE PLEASE.

SO TRUE.

LET'S TAKE, I'M SORRY.

NEXT SLIDE PLEASE.

HERE WE GO.

UH, THREE OF THE FIRST FIVE BILL CYCLES THERE, UH, THAT WERE SCHEDULED TO BILL SINCE THE TEMPORARY RATES TOOK EFFECT ON MARCH 19TH, APPROXIMATELY APPROXIMATELY 78 MILLION GALLONS OF CONSUMPTION OCCURRED IN TIER THREE THROUGH FIVE RESULTING IN APPROXIMATELY $990,000 OF RATE RELIEF AS COMPARED TO THE AMOUNT THAT WOULD HAVE BEEN BILLED UNDER OUR NORMAL RATE STRUCTURE AND PUT THAT IN PERSPECTIVE, THE, THE BILL RELEASE NUMBERS TODAY REPRESENT ABOUT 25% OF OUR MONTHLY BILL CYCLES.

HOWEVER, THE 78 BILLION GALLONS THAT WERE BUILT IN THOSE TIERS THREE THROUGH FIVE REPRESENT MORE THAN HALF OF OUR NORMAL MONTHLY CONSUMPTION IN THOSE TIERS FOR, FOR THIS TIME OF YEAR NOW FOR COMMERCIAL AND MULTIFAMILY ACCOUNTS, WE'RE MANUALLY REVIEWING THOSE ACCOUNTS TO IDENTIFY UNUSUALLY HIGH CONSUMPTION AND PROACTIVELY APPLYING A BILL ADJUSTMENTS TO REDUCE BILL CONSUMPTION DOWN TO THE NORMAL EXPECTED LEVEL OF CONSUMPTION FOR THIS TIME OF YEAR.

AND TO DATE, WE'VE APPLIED ALMOST 256,000 BILL ADJUSTMENTS FOR COMMERCIAL CUSTOMERS AND APPROXIMATELY $588,000 IN BILL ADJUSTMENTS FOR MULTI-FAMILY ACCOUNTS.

NOW ON THE COMMERCIAL SIDE, UH, 47 MILLION GALLONS HAVE BEEN ADJUSTED TO DATE, UM, YOU KNOW, REDUCED DOWN TO A NORMAL EXPECTED LEVEL OF CONSUMPTION.

AND THAT REPRESENTS ABOUT 7% OF OUR NORMAL MONTHLY COMMERCIAL CONSUMPTION.

WHILE ON THE MULTIFAMILY SIDE, 124 MILLION GALLONS HAVE BEEN ADJUSTED TO DATE, WHICH REPRESENTS ABOUT 17% OF OUR NORMAL MONTHLY CONSUMPTION FOR THIS TIME OF YEAR.

NOW IN TOTAL, WE'VE PROVIDED OVER 1.8 MILLION IN BILL RELIEF TODAY TO CUSTOMERS IMPACTED BY THE WINTER STORM.

AND LOOKING AHEAD, WE EXPECT,

[01:00:01]

UH, THE BULK OF THE FINANCIAL RELIEF PROCESS TO BE COMPLETED BY THE END OF APRIL, BUT IT MAY TAKE A FEW ADDITIONAL BILLING CYCLES TO FULLY RESOLVE SOME OF THE ISSUES THAT OUR CUSTOMERS MAY BE EXPERIENCING, UH, PARTICULARLY FOR THOSE CUSTOMERS, FOR EXAMPLE, WHOSE RATES WEREN'T ABLE TO BE RE OR AS JUST WEREN'T ABLE TO BE READ DURING THE STORM EVENT.

UM, SINCE THE MARCH READ, THE SUBSEQUENT READ IS CURRENTLY THE ONLY DATA POINT THAT WE HAVE FOR THOSE CUSTOMERS.

YOU HAVE ANY ONGOING ISSUES OR LEAKS MIGHT NOT BECOME FULLY APPARENT UNTIL WE GET THE NEXT READ.

UM, SO WHILE WE'RE WORKING