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[00:00:06]

YOU KNOW, 30 MINUTES LATE.

OKAY.

UM, SO, UH, CITY HALL IT, COULD WE GET GOING? UM, IT LOOKS LIKE GOOD TO GO AND I'M GOOD TO GO.

IF YOU'RE GOOD TO GO, WE CAN DO THAT.

OKAY.

LET'S DO IT.

OKAY.

UM,

[CALL MEETING TO ORDER]

I WILL CALL TO ORDER THIS ELECTRIC VIRTUAL ELECTRIC UTILITY COMMISSION MEETING.

UH, IT IS JULY 15TH, 2021 AT 6:00 PM.

UM, WE HAVE, UH, FOR RECORD KEEPING PURPOSES, COMMISSIONER'S HOPKINS, CHATMAN, VIRTUAL TUTTLE, REED, AND FUNKHOUSER AND ATTENDANCE.

UH, MS. AUTO, UM, YOU MAY NOT KNOW THE ANSWER TO THIS, OR WE MAY NOT HAVE IT JUST YET, BUT AS A HOUSEKEEPING MATTER.

UM, DO WE KNOW WHEN OUR, UH, AUGUST EDC MEETING IS YET? OKAY.

I DON'T BELIEVE THAT WE DO.

I THINK JEFF IS STILL WORKING ON SCHEDULING THAT WITH THE CLERK'S OFFICE.

HE WILL UPDATE UPDATE YOU NEXT WEEK OR WHEN HE, WHEN HE IS AVAILABLE TO DO THAT.

OKAY, GREAT.

THANK YOU ON TO SEND COMMUNICATIONS.

DO

[CITIZEN COMMUNICATION: GENERAL]

WE HAVE ANY PUBLIC COMMENT TODAY? NO, I DON'T BELIEVE ANYONE'S SIGNED UP.

OKAY, THEN, UH, TAKING UP ITEM

[1. APPROVAL OF MINUTES – Approve minutes of the June 21, 2021 special-called meeting.]

NUMBER ONE APPROVAL OF THE MINUTES.

UH, THE MEETING MINUTES FROM THE JUNE 21ST MEETING, UH, WERE CIRCULATED WITH YOUR MEETING MATERIALS.

ANYONE HAVE ANY COMMENTS TO THE JUNE MEETING MINUTES HEARING NONE.

NOPE, NO COMMENTS.

UM, BUT I'LL NOTE I WAS ACTUALLY PRESENT.

IT'S JUST, I WAS DRIVING BACK FROM CALIFORNIA, SO I WAS LISTENING TO THE WHOLE TIME.

I JUST KEPT GOING IN AND OUT, DEPENDING ON WHAT CURVE I, WHAT MOUNTAIN CURVE I WENT AROUND.

BUT, UM, I DID LISTEN TO TENTATIVELY, BUT YEAH, WOULD THAT I WOULD MAKE A MOTION TO APPROVE.

SO I WISH YOU DON'T THINK WE'RE GOING TO BUY THAT LAME EXCUSE DAY YET.

IT WAS ACTUALLY VERY ANNOYING THAT, YOU KNOW, IT KEPT GOING OUT AND THEN HAD CALLED BACK IN.

AND I REALLY WANTED TO ASK A QUESTION.

UM, UH, YOU KNOW, I WAS REALLY INTERESTED IN THE, IN THE ENERGY EFFICIENCY, UM, CONTRACT FOR EQUITY THAT WAS DISCUSSED AND I HAD QUESTIONS, BUT I, I KEPT ASKING THEM, BUT I KEPT RIGHT AS I WAS ASKING THEM VENTURE.

I TUNED OUT, UH, IT DOESN'T WORK WHILE TRYING TO DRIVE AND DO ONE OF THESE MEETINGS I CAN SEE.

YEAH.

OKAY.

UH, SO THERE'S A MOTION ON THE TABLE TO APPROVE THE JUNE MEETING MINUTES.

IS THERE A SECOND? THANK YOU, COMMISSIONER CHAPMAN.

ALL THOSE IN FAVOR.

AYE.

AYE.

AND ERIC, CAN I GET AN ODD AUDIBLE VOTE FROM YOU? I COULDN'T HEAR YOU.

ALL RIGHT.

THANK YOU.

SO, UH, THE JUNE MEETING MINUTES ARE APPROVED UNANIMOUSLY, UH, MOVING

[NEW BUSINESS – CONSENT]

ON TO NEW BUSINESS.

ARE THERE ANY ITEMS ON, UH, THE NEW BUSINESS AGENDA THAT THE COMMISSIONERS WOULD LIKE PULLED FOR DISCUSSION? I HAD A VERY QUICK QUESTION ON ITEM FOR THE PUBLIC HEARING, SAME COMMISSIONER REED.

SO WE'LL PULL THAT ONE.

ANYBODY ELSE? OKAY.

HEARING NONE.

I'LL ENTERTAIN A MOTION TO APPROVE ITEMS. 2, 3, 5 THROUGH 11.

THANK YOU, COMMISSIONER CHAPMAN.

AND IS THERE A SECOND? THANKS COMMISSIONER.

READ ALL THOSE IN FAVOR.

AYE.

AND COMMISSIONER FUNKHOUSER.

CAN I, UH, GET YOUR VOTE AGAIN? I THANK YOU.

OKAY.

UH, ITEMS NUMBER 2, 3, 5, 5 11 ARE, UH, APPROVED, TURNING TO

[4. (7/29) [Austin Energy] Conduct a public hearing to receive public comment and consider proposed rate and fee changes for Austin Energy as part of the Fiscal Year 2021-2022 proposed budget. (Part 1 of 2)]

ITEM NUMBER FOUR.

COMMISSIONER REED ARE ACTUALLY, UM, MISS AUTO, WHO DO WE HAVE FROM AUSTIN ENERGY TO ADDRESS ITEM NUMBER FOUR? IS THAT YOU? IT WON'T BE ME.

WE ACTUALLY HAVE GENERAL MANAGER JACKIE SERGEANT AVAILABLE.

OKAY.

ALL RIGHT.

UH, COMMISSIONER RAY, GO AHEAD.

YEAH.

MY BASIC QUESTION IS I NOTICED IN THE LATER PRESENTATION THAT, OF COURSE THERE'LL BE A, AN OPPORTUNITY FOR THE PUBLIC TO APPLY ON THE PROPOSED BUDGET AND, UM, YOU KNOW, NEW, NEW FEES.

[00:05:01]

BUT THE, THE PART OF THE, THE PART OF THE FEES THAT WON'T BE DISCUSSED IN AUGUST ARE IN SOME WAYS THE MORE IMPORTANT ONES, THE, THE PSA, UM, THE, UM, COMMUNITY BENEFIT CHARGE, WHICH, YOU KNOW, ARE OF INTEREST TO A LOT OF PEOPLE.

SO I GUESS MY QUESTION IS, WILL THERE BE AN OPPORTUNITY FOR THE PUBLIC TO, UH, PINE ON THOSE BEFORE THE CITY COUNCIL AT SOME POINT? AND IS THAT NOT PART OF THIS, THAT WOULD BE A FUTURE DISCUSSION.

JACKIE SERGEANT GENERAL MANAGER, AUSTIN ENERGY, YOU ARE CORRECT.

UM, WHEN THE, UH, WE BRING THOSE FORWARD FOR THE COUNCIL APPROVAL, THERE WILL BE A CHANCE, UM, FOR THAT DISCUSSION.

AND SO THIS IS FOR THE REGULAR PART OF THE, THE BUDGET AS IT MOVES FORWARD IN THE PROCESS, SIMILAR TO OTHER UTILITY, UM, DEPARTMENT FEES.

OKAY.

THANKS.

BUT THERE WILL BE AN OPPORTUNITY AND, AND WOULD, WOULD THE, THOSE PROPOSED PSA AND COMMUNITY BENEFIT CHARGES, AND I THINK THERE'S ONE OTHER, I CAN'T REMEMBER WHAT WOULD THEY COME BACK TO WOULD, WOULD WE ON THE EUC ALSO HAVE A CHANCE TO LOOK AT THOSE? OKAY, GREAT.

THAT WAS MY ONLY QUESTION.

SO, SO I'M CLEAR THAT YOU SEEK AND WHITES WAY AND NOT TAKE A POSITION FOR, OR AGAINST IN TERMS OF MAKING RECOMMENDATIONS TO CITY COUNCIL.

YES.

OUR ROLE AS ADVISORS TO CITY COUNCIL, YOU CAN MAKE RECOMMENDATIONS.

THAT'S WHAT I THOUGHT.

MS. SERGEANT, COULD YOU JUST, UH, EXPLAIN FOR ME GENERALLY, UH, THE PROCESS HERE, I'VE NOT BEEN THROUGH, UH, A RATE CASE, UM, WITH AUSTIN ENERGY.

AND SO I, I WOULD JUST APPRECIATE A SORT OF, YOU KNOW, VERY BRIEF ONE ON ONE AND ON, ON HOW THAT FLOWS THROUGH, UH, YOU KNOW, W WHAT WE'RE SEEING HERE, WHAT HAPPENS NEXT, AND, YOU KNOW, WHAT, WHAT IS IT EXACTLY THAT WE'RE ASKED TO APPROVE, UM, IN, IN ITEM NUMBER FOUR, YOU'RE JUST BEING MADE AWARE THAT THAT'S PART OF THE REGULAR BUDGET PROCESS, AND THAT, THAT WILL BE MOVING FORWARD FOR CITY COUNCIL TO SET PUBLIC HEARING FOR, UM, THOSE FEES AND CHARGES AS THEY WORK THROUGH THE BUDGET, THE NORMAL BUDGET PROCESS, AND THE BUDGET IS SET FOR, UH, THE FINAL READINGS AND ADOPTION STARTING ON AUGUST 11TH.

YOU SEPARATE THE WORK SESSIONS.

THERE'S A COUPLE OF WORK SESSIONS PRIOR TO THAT.

THE CITY MANAGER PRESENTED THE BUDGET TO CITY COUNCIL LAST WEEK.

OKAY.

SO I JUST, FOR CLARIFICATION, UH, THEY WILL TAKE ACTION A SECOND COUNSELING.

OKAY.

ACTION.

ON AUGUST 11, IT WOULD APPROVE, UH, THE FEES THAT CYRUS WAS IN FILE.

BEN.

IT DOESN'T SEEM LIKE I AM THE PUBLIC COMMISSION, MR. JOHN PRESENTED INFORMATION PREVIOUSLY, I BELIEVE.

AND AS WE MOVE THROUGH THIS PROCESS, UM, ADDITIONAL INFORMATION GETS PROVIDED AND WE WILL SET THE CHARGES THAT CYRUS WAS CALLING.

UM, AND THOSE, THOSE RATES WILL BE DONE IN SEPTEMBER.

ABSOLUTELY.

WE NEED TO GET THROUGH AUGUST, UM, AND UNDERSTAND CONSUMPTION NUMBERS SO THAT THOSE RATES CAN BE PROPERLY SET.

AND I MISSPOKE EARLIER WHEN I SAID RAY CASE.

SO I'M UNDERSTANDING NOW WE'RE ON THE SAME PAGE.

UM, OKAY.

ALL RIGHT.

UH, ANY OTHER QUESTIONS ON ITEM NUMBER FOUR? ALL RIGHT.

UM, I'LL ENTERTAIN A MOTION TO APPROVE ITEM NUMBER FOUR.

AND IS THERE A SECOND? THANK YOU, COMMISSIONER TITLE, ALL THOSE IN FAVOR, AYE.

HI, THIS IS CARRIE.

I I'VE GONE OFF VIDEO.

THANKS.

I GOT BOTH, UH, COMMISSIONER FUNKHOUSER AND COMMISSIONER FOR VIRTUAL VOTING.

I ON THAT, UH, THE MOTION CARRIES UNANIMOUSLY.

UH, WE WILL MOVE ON TO, HANG ON.

LET ME GET BACK UP TO MY AGENDA.

SORRY.

UH, MOVE ONTO STAFF BRIEFINGS IN

[00:10:01]

REPORTS.

UM, WE HAVE FIRST UP AUSTIN

[12. Austin Energy Budget]

ENERGY BUDGET PRESENTATION.

UM, AND WHO DO WE HAVE FROM STAFF PRESENTING TONIGHT? WE HAVE, UH, UM, MARK DOMBROWSKI AND JOHN DAVIS.

I THINK ONE MORE.

JUST GIVE US ONE MOMENT.

SURE.

AND CHAIRWOMAN, WE'RE NOT, WE'RE NOT TAKING ACTION ON THIS BUDGET OR ARE THEY LOOKING FOR US TO GIVE A SORT OF A THUMBS UP ON IT? IT'S NOT POSTED FOR ACTION, RIGHT? THAT'S GREAT.

I DON'T, IT'S NOT POSTED FOR ACTION.

UH, IS THAT, THAT'S MY UNDERSTANDING, UM, MASATO IS, IS THERE, IS THERE AN ASK FROM AUSTIN ENERGY ILLNESS? MARK, COULD YOU ANSWER THAT QUESTION FOR THE CHAIR OR THE CHAIR I'M MISTAKEN? WE NAMED BLURRED ON FOR THAT WAS THE ACTION.

IS THAT CORRECT, JOHN? THAT'S CORRECT.

THERE'S NO FURTHER ACTION RELATED TO THE BUDGET PRESENTATION.

IT'S JUST A PRESENTATION ONLY GO FORWARD.

LET, LET ME CIRCLE BACK ON THAT, BUT GO AHEAD AND START WITH THE PRESENTATION.

PRESENTATION IS 10 MINUTES.

READY? READY ON OUR END.

THANK YOU.

FANTASTIC.

GLAD IT'S WORKING.

GOOD AFTERNOON, EVERYBODY.

I'M JOHN DAVIS, DIRECTOR OF AUSTIN ENERGY FINANCE, AND TODAY I'M GOING TO BE PRESENTING AN OVERVIEW OF THE 2022 BUDGET.

I'LL BE COVERING, UH, THE FIRST THREE TOPICS.

UM, NEXT PAGE I'LL BE COVERING THE FIRST THREE TOPICS ON THE AGENDA.

AND THEN A REPRESENTATIVE FROM EACH OF OUR MAJOR BUSINESS UNITS IS GOING TO SPEAK TO THEIR INITIATIVES THAT THEY'VE INCLUDED IN THEIR BUDGETS THAT ARE BEING SUBMITTED.

I'LL CONCLUDE WITH THE REVIEW OF THE PROPOSED TARIFF, A FEW CHANGES, UM, SOME OF WHICH WE JUST SPOKE ABOUT NEXT SLIDE.

OKAY.

OKAY.

PAGE THREE IS THE FINE PRINT TO REMIND EVERYBODY THAT THE BUDGET WE HAVE SUBMITTED IS BASED ON OUR BEST ESTIMATE OF WHAT WE EXPECT FOR FISCAL YEAR 22, UH, FINANCIAL PERFORMANCE.

BUT AGAIN, IT IS AN ESTIMATE AND DEPENDS ON MANY FACTORS, NOT THE LEAST OF WHICH IS WEATHER AND THE PERFORMANCE OF THE ENERGY MARKETS.

NEXT SLIDE.

OKAY.

NOW WE'LL GO THROUGH THE BUDGET PRESENTATION.

NEXT SLIDE PLEASE.

OKAY.

THIS WILL TOUCH ON SOME OF THE DATA THAT WE JUST SPOKE ABOUT.

UM, YOU'LL SEE.

IN OUR PROPOSED BUDGET ADOPTION SCHEDULE, CITY MANAGER, KROC PRESENTED, PRESENTED THE CONSOLIDATED CITY BUDGET LAST WEEK, WHICH INCLUDED THE BUDGET FOR AUSTIN ENERGY.

TODAY.

WE WANT TO GO AHEAD AND PRESENT TO THE EUC A LITTLE MORE DETAIL ON THOSE BUDGET ITEMS THAT ARE SPECIFIC TO AUSTIN ENERGY.

THERE ARE TWO WORKING MEETINGS PLAN, AS YOU'LL SEE ON THE SCHEDULE, UH, WITH THE CITY COUNCIL TO DISCUSS THE BUDGET ON JULY THE 27TH, WE'VE GOT WORKING SESSION NUMBER ONE, AND THEN ON AUGUST 3RD, WORKING SESSION, NUMBER TWO, THERE'LL ALSO BE A PUBLIC HEARING ON THE RATES AND FEES ON JULY THE 29TH TO PROVIDE AN OPPORTUNITY FOR FURTHER PUBLIC INPUT.

WE EXPECT THE BUDGET READINGS AND BUDGET OPTION TO OCCUR ON AUGUST THE 11TH.

AND THEN FINALLY IN SEPTEMBER THE 30TH, UH, WE'LL DISCUSS SOME OF THOSE OTHER RATES THAT WERE JUST MENTIONED THE POWER SUPPLY ADJUSTMENT, THE COMMUNITY BENEFITS CHARGE AND THE REGULATORY CHARGE.

OKAY.

WOULD IT GO FORWARD ONE MORE? THANK YOU.

PAGE SEVEN IS PRESENTING THE 2022 CITY BUDGET PRESENTED BY CITY MANAGER CROCK AND ILLUSTRATES EXPENSE BUDGET IN PROPORTION TO THE REST OF THE CITY BUDGET.

AND JUST FOR YOUR OWN INFORMATION MAKES UP ABOUT 33% OF THE CITY WIDE BUDGET OF 4.5 BILLION.

NEXT SLIDE PLEASE, UM, PROVIDES A FURTHER BREAKDOWN TO THE BUDGET INTO THE MAJOR CATEGORIES IN WHAT WE CALL THE FUND SUMMARY FORMAT.

UM, I'D LIKE TO CALL YOUR ATTENTION TO THE THIRD COLUMN FROM THE RIGHT

[00:15:01]

F Y 2022 PROPOSED STARTING WITH THE BEGINNING BALANCE OF WHERE WE EXPECT THE FUND TO END THE YEAR 2021 AT 261 MILLION.

AND WITH THE BUDGET DETAIL BELOW, WE'RE INDICATING THAT WE'RE GOING TO HAVE A $18.8 MILLION DEFICIT IN 2022, UH, ENDING THE YEAR WITH THE PROJECTED BALANCE OF ABOUT 242.

NEXT SLIDE PAGE NINE AND 10 COULD BE LOOKED AT IN CONJUNCTION WITH ONE ANOTHER.

UM, PAGE NINE PROVIDES A BREAKOUT OF THE SOURCES OF THE 1.5 BILLION IN REVENUES, UM, THAT YOU CAN SEE MORE DETAIL ON PAGE EIGHT AND IT CAN BE VIEWED IN CONJUNCTION, UH, WITH PAGE 10, UH, TO PROVIDE SOME NOTES ABOUT OUR ASSUMPTIONS.

UM, THE LOAD FORECAST YOU USED FOR THE 22 BUDGET IS BASED ON A 20 YEAR WEATHER NORM IN YEARS PAST FOR THE REVENUE FORECAST, WE NORMALLY USE THE MOST RECENT YEAR END CUSTOMER DATA FOR THE HISTORICAL BASE.

BUT FOR 22 FORECASTS, WE USE THE MOST RECENT THROUGH YOUR AVERAGE CUSTOMER PROFILE TO THE IMPACT OF COVID-19 AND ITS IMPACT ON 2020.

ALSO NOTE THAT THE 58.2 MILLION OF REVENUES INCLUDES FUNDS COLLECTED FOR ENERGY EFFICIENCY, INITIATIVES, AND COMMUNITY-BASED PROGRAMS THAT PROVIDE BOTH ENERGY INCENTIVES AS WELL AS LOW INCOME SUPPORT TO MAKE ELECTRIC BILLS MORE AFFORDABLE TO CITIZENS.

PAGE NINE, I'LL LOOK AT A FEW MORE OF THE ASSUMPTIONS ASSOCIATED WITH THE REVENUES.

GO AHEAD, MOVE FORWARD.

ONE MORE SLIDE ON ME.

HERE WE GO.

BASED REVENUES ARE REMAIN FLAT.

UM, CUSTOMER GROWTH IS PROJECTED AT 1.6%.

ENERGY SALES GROWTH IS FORECASTED AT 0.8%.

UM, LOAD REVENUE FORECAST ARE BASED ON THE PRE COVID EXPECTATIONS.

LET ME JUST SPOKE ABOUT POWER SUPPLY ADJUSTMENT IS TO BE FINALIZED AT THE END OF SEPTEMBER.

WE'VE GOT A HEARING SCHEDULED FOR SEPTEMBER THE 30TH TO DISCUSS THAT ALSO THE REGULATORY CHARGES WILL BE FINALIZED AT THAT POINT.

NEXT SLIDE CHARTS ILLUSTRATE THE USES OF FUNDS THAT PROVIDE DETAIL ON HOW THE 1.5 MILLION OF BUDGETED EXPENSES WILL BE UTILIZED AND SHOULD BE USED IN CONJUNCTION WITH THE NOTE ON PAGE 12 SLIDE RIGHT ACROSS THE BOARD COST OF LIVING INCREASE IS INCLUDED IN OUR BUDGET, UH, AT 2%, WHICH RESULTED ABOUT A $3.75 MILLION IMPACT ON O AND M.

IT ALSO INCLUDES A ONE-TIME $500 EMPLOYEE PAYOUT, WHICH AMOUNTS TO 882,000.

IN ADDITION, THERE WERE 85 NEW FTES THAT WERE REQUESTED FOR OUR NET IMPACT OF 4.6.

UM, AND JUST SO THE COMMISSIONERS KNOW THAT A LARGE PORTION OF THOSE FTES THAT WERE REQUESTED WILL BE CONTRACTOR REPLACEMENTS, UM, AND THEN SOME GOOD NEWS AT THE BOTTOM, UH, INSURANCE COSTS PER FTE REDUCED, UH, RESULTING FROM THE, UM, UH, RESULTS OF THE POOL FROM 14,700 TO 12 AND A HALF THOUSAND PER EMPLOYEE.

I HAD A REALLY QUICK QUESTION ON SLIDE 11, JUST THE DEBT SERVICE.

I WAS JUST CURIOUS WHETHER THAT DEBT SERVICE OF 11%, UH, YOU KNOW, BEING ABOUT 11% OF THE OPERATING REQUIREMENTS, IS THAT KIND OF IN LINE WITH OTHER YEARS, DO YOU HAPPEN TO KNOW, OR IS THAT AN INCREASE, A DECREASE BECAUSE I KNOW WE TOOK ON SOME EXTRA DEBT WITH THE, UM, OR MAYBE WE DIDN'T, MAYBE WE JUST PURCHASE IT WITH CASH WITH THE BIOMASS CONTRACT.

I DIDN'T KNOW WHAT THAT, THAT WAS RELATED TO YES.

AND THE DEBT ASSOCIATED WITH THE NACADOCIOUS BIOMASS PLANT IS BEING PASTORED AS PART OF, UM, PURCHASE POWER EXPENSE.

AND THE DEBT SERVICE IS ON PAR WITH PRIOR, PRIOR, SORRY, PRIOR YEARS THAT WE'RE GOING TO SEE A SLIDE A LITTLE BIT LATER IN THE PRESENTATION.

IT'S A GOOD QUESTION.

THANKS.

THANKS.

GO AHEAD.

AS LONG AS WE'RE ON THIS SLIDE, YOU MENTIONED, UM, USING MORE CONTRACT BY, UH, OKAY.

YES.

YES.

SO, UM, I, IF I SAID MORE CONTRACT LABOR, I MISSPOKE, UM, MANY OF THE NEW FTES ARE REPLACING CONTRACT LABOR.

SO, UM, SORRY, GO AHEAD.

CAN YOU EXPLAIN THE INSURANCE COST REDUCTION, WHICH IS A POSITIVE WE NEED, YOU MENTIONED SOMETHING ABOUT A POOL.

IS THIS A HEALTH INSURANCE OR SOMETHING? YES, YES.

YES.

SO THE RESULTS, THE RESULTS FROM THE EXPERIENCE FROM LAST YEAR WERE GOOD AND OUR COSTS HAVE GONE DOWN FROM 14,700 TO 12, 12,500.

OKAY.

ONE MORE QUESTION FOR YOU ON SLIDE 12.

UM, WHAT IS

[00:20:01]

THE ONE TIME $500 EMPLOYEE PAYOUT, UH, MARK, MAYBE OFFER SOME MORE CLARIFICATION ON THAT, BUT THAT WAS ACTUALLY A CITY WIDE RECOMMENDATION IS MY UNDERSTANDING.

AND SO THAT IS EIGHT EAST PORTION OF THE $500 EMPLOYEE PAYOUT THAT THEY WERE, UM, RECOMMENDING FOR, UH, AUSTIN ENERGY TO BUDGET FOR NEXT YEAR.

I DON'T KNOW WHAT THE FULL CITY-WIDE IMPACT IS, BUT THAT'S EIGHT YEARS PORTION, UH, FISHER HOPKINS.

OKAY.

OKAY.

UM, I BELIEVE WE'RE ON SLIDE 13 NOW.

THANK YOU.

OKAY.

JUST A FEW COMMENTS ABOUT WINTER STORM URI.

UM, PLEASE BE AWARE THAT WE'RE ANTICIPATING AN AFTER ACTION ITEM REPORT RELATED TO THE STORM TO BE RELEASED LATER IN THE FALL.

AND WE MAY NEED TO REPRIORITIZE BUDGET ITEMS DEPENDING ON THE FINDINGS FROM THAT REPORT.

ALSO REGULATORY IMPLEMENTATION OF RECENT LEGISLATION LEGISLATION COULD IMPACT THE BUDGET AND TAMMY COOPER IS GOING TO BE SPEAKING ON THAT IMMEDIATELY AFTER THIS PRESENTATION, THE EXTENT OF ANY INCREASED COSTS WILL NOT BE KNOWN UNTIL THE CONCLUSION OF MULTIPLE IMPLEMENTATION PROJECTS AT PUC.

AND AGAIN, THE PSA RATE, WHICH IS THAT LAST BULLET IS GOING TO BE SET AT THE INNOCENT TEMPER, AND IT WILL BE EFFECTIVE NOVEMBER THE FIRST, WE'LL SEE A SLIDE LATER IN THE PRESENTATION THAT SHOWS WHERE WE ARE ON THE OVER-UNDER BALANCE AND THE PSA RATE.

NEXT SLIDE.

OKAY.

THIS SLIDE ILLUSTRATES THE TRANSFERS BACK TO THE CITY.

AND, UH, YOU'LL PROBABLY RECALL IF YOU HAPPEN TO FLIP BACK TO PAGE EIGHT, YOU'LL SEE THE GENERAL FUND TRANSFER, WHICH IS THE LARGEST OF THE TRANSFERS HAS REMAINED RELATIVELY FLAT AT APPROXIMATELY 114 MILLION.

AS YOU KNOW, THE GENERAL FUNDS TRANSFER IS CRUCIAL TO PROVIDING FUNDS TO A NUMBER OF INITIATIVES AT THE CITY LEVEL.

NEXT SLIDE.

OKAY.

THIS SLIDE AS A TABLE SUMMARIZING THE CONSTRUCTION CAPITAL IMPROVEMENT PLAN PROJECTS, OR THE NEXT FIVE YEARS, IT'S IMPORTANT TO NOTE THAT 2022 DOES NOT INCLUDE BUDGETING FOR ANY CONTINGENT PROJECTS SUCH AS TESLA AND SAMSUNG.

IF THESE PROJECTS DO MOVE FORWARD, WE'LL NEED TO ADDRESS THESE SEPARATELY AT A FUTURE MEETING.

ALSO 21 IS ELEVATED RELATIVE TO FISCAL YEAR 22, DUE TO THE COST OF CONSTRUCTION FOR THE NEW HEADQUARTERS AND NOTE, THIS IS THE FULL COST OF CAPITAL, REGARDLESS OF WHETHER OR NOT IT'S FUNDED OUT OF OPERATIONS OR DEBT.

SO CAN WE PAUSE ON THIS FOR A SECOND? IS THERE ANYTHING INCLUDED IN THERE AS A CONTINGENCY OR AT LEAST A PLACEHOLDER FOR LIKE THE SEXUALIZATION PLAN? UM, IT LOOKS LIKE THERE'S A HEALTHY BUMP IN FISCAL YEAR 2020 TO 124, AND THEN IT GOES BACK DOWN TO 114, BUT IT JUST SEEMS LIKE WE OUGHT TO BE COUNTING ON, UM, SOMETHING THAT HAS TO BE REQUIRING SOME CAP EX IN THE FUTURE.

SO WHAT'S THAT BUMP FOR RIGHT NOW? THE 124 COMPARED TO THE LOWER AMOUNTS IN THE OUT YEARS, UH, YOU JUMPED INTO THE DISTRIBUTION LINE.

YEAH, I'M SORRY.

YES.

DISTRIBUTION.

I MAY HAVE TO FOLLOW UP WITH DETAILS IN THAT UNLESS, UM, I CAN GET A, FROM THE BEALE DEVELOPER MARK.

UM, BUT I WILL FOLLOW UP ON THAT.

UM, I DO KNOW THAT THE BUMP IN 21, UH, IT WAS RELATED TO THE HEADQUARTERS, BUT, UM, BUT I'LL HAVE TO FOLLOW UP ON THAT DISTRIBUTION BUMP.

UM, I'M JUST, I'M ACTUALLY JUST THINKING THAT YOU OUGHT TO HAVE A PLACEHOLDER FOR SOME KIND OF EX EXTRA CAP EX BEYOND THE VEGETATION MANAGEMENT.

OKAY.

AND, UH, AHMED'S WITH US TOO.

HE MAY BE ABLE TO SPEAK ON THAT A LITTLE BIT LATER IN THE PRESENTATION.

UM, AND TO YOUR QUESTION RELATED TO THE CONTINGENT PROJECTS, UH, THERE IS A CONTINGENCY AMOUNT THAT WE DO ROUTINELY BUDGET FOR AND, UH, AND THE BUDGET.

HOWEVER, UM, THE PROJECTS IS WHAT I WAS SPEAKING TO RELATED TO TESLA AND SAMSUNG.

THERE IS NOTHING IN THE BUDGET RIGHT NOW FOR THOSE, UH, JUST BECAUSE THEY WEREN'T FAR ENOUGH ALONG AND WE DIDN'T WANT TO GO AHEAD AND, UM, ENCUMBER ANYTHING RELATED TO THOSE PROJECTS IF THEY'RE NOT GOING TO MOVE FORWARD.

SO THEY ARE NOT IN A BUDGET RIGHT NOW, JUST TO BE CLEAR.

OH, OKAY.

THE NEXT SLIDE, PLEASE.

THIS IS REALLY JUST AN OVERVIEW OF HOW WE PLAN TO FUND, UH, THE CIP, UM, PROJECTS.

[00:25:01]

UM, AGAIN, THIS IS CONSISTENT WITH BRIAR, YOU'LL SEE THE DEBT PERCENTAGE AND THE CASH PERCENTAGE DOWN BELOW, UH, FOR 22, WE'RE PROTECTING, IT WILL BE 50 FUNDED, 56, 50 7% WITH DEBT AND 30% WITH CASH AND 12% WITH CONTRIBUTIONS, DATA CONSTRUCTION FROM DEVELOPERS AND CUSTOMERS.

AND IT'S PRETTY CONSISTENT WITH THE PRIOR YEAR.

OKAY.

UP, WE'LL START TALKING ABOUT THE FINANCIAL HEALTH IN THE AVERAGE CUSTOMER BILL IMPACT.

RIGHT? ALL RIGHT.

THIS SLIDE SUMMARIZES THE AVERAGE BILL IMPACT FOR 860 KILOWATT HOUR MONTHLY BILL.

UH, WE DO NOT HAVE YET RATES FOR THE POWER SUPPLY ADJUSTMENT.

CAN YOU BENEFITS CHARGED OR THE REGULATORY CHARGE AS WE'VE ALREADY DISCUSSED IN 2022, BUT WE'LL BE FILLING THOSE PLACEHOLDERS IN LATER ONCE THIS CALCULATION CIRCLES.

OKAY.

NEXT SLIDE.

ALL RIGHT.

THIS IS THE SLIDE THAT WAS REFERRING TO EARLIER.

YOU'LL SEE THAT THE DEBT SERVICE, UH, FROM LAST YEAR TO 2022 IS RELATIVELY FLAT.

THE BUMP THAT YOU SEE FROM 2019 TO 2020, UM, WAS TAKEN ON THE NACADOCIOUS, UM, UH, BIOMASS PLANT.

UM, BUT THE DEBT SERVICE ASSOCIATED THE NACA DISH, THEY'RE JUST POWERPLANT HAS BEEN EMBEDDED IN THE, UM, PURCHASE POWER COSTS.

OKAY.

UM, AND WE'LL ALSO SEE A RELATED METRIC THAT WE USE FOR THE DEBT SERVICE COVERAGE LATER ON IN THE PRESENTATION.

AND NEXT SLIDE, THANK YOU.

WE'LL TALK A LITTLE BIT ABOUT THE FINANCIAL HEALTH.

UM, THESE ARE THE CORE METRICS THAT WE LOOK AT ROUTINELY.

UH, THE NUMBERS THAT ARE IN GREEN ARE INDICATING THAT WE'RE ABOVE THE MINIMUM.

UH, AND AS YOU CAN SEE FROM MOST OF THE CATEGORIES, AUSTIN ENERGY HAS EXCEEDED THE MINIMUM CRITERIA, UM, FOR THE DEBT SERVICE COVERAGE RATIO BEING LOWER THAN THE MINIMUM MINIMUM, UH, WHERE YOU CAN COUNTER THAT CONCERN WITH THE FACT THAT THERE ARE MORE THAN ENOUGH ADEQUATE RESERVES, UM, THAT WE'RE GOING TO SEE ON THE NEXT PAGE TO COVER ANY, UM, ISSUES RELATED TO DEBT SERVICE.

NEXT SLIDE.

AND YOU CAN SEE HERE THAT WE'RE SHOWING TOTAL RESERVES AT 641 BILLION PROJECTED FOR 2022, RELATIVE TO THE MINIMUM AMOUNT REQUIRED A 414 MILLION.

SO MORE THAN ENOUGH RESERVES TO HELP COVER ANY CONCERNS ABOUT DEBT, SERVICE, COVERAGE RATIO, WHAT WE'RE LIQUIDITY, NOT NUCLEAR DECOMMISSIONING.

IS THAT FOR FAYETTE? I BELIEVE SO.

I'LL GET THAT CLARIFIED AND FOLLOW UP.

UM, LATER IN THE PRESENTATION, WHEN I COME BACK TO SPEAK, I BELIEVE THAT IT IS FOR FAYETTE.

OKAY.

UM, NEXT, NEXT UP, WE'RE GOING TO HAVE THE, EACH ONE OF THE REPRESENTATIVES OF THE, UM, MAJOR BUSINESS UNIT SPEAK TO THEIR BUDGETS, AND NEXT UP WILL BE PASSING.

WE NEED VICE-PRESIDENT POWER PRODUCTION.

UH, HE'S GOING TO TAKE OVER THE PRESENTATION FROM HERE AND DISCUSS THE KEY ELEMENTS OF THE 2022 BUDGETS FOR POWER GENERATION.

THAT IF YOU'RE THERE AT HANDED OFF TO YOU, OKAY, THERE WE GO.

AND UN-MUTED NOW, AND HOPEFULLY YOU CAN SEE ME AS WELL.

OKAY.

WELL, GOOD EVENING COMMISSIONERS.

UM, SO I THINK WE NEED TO MOVE TO THE NEXT SLIDE ACTUALLY THEN ONE AFTER THAT SLIDE 23.

OKAY.

IN MY WAY HERE.

OKAY.

SO, UM, JUST A QUICK OVERVIEW OF OUR POWER GENERATION DISTRICT COOLING.

I'M RESPONSIBLE FOR BOTH AREAS, UH, AND KEEP IN MIND THESE CHARTS, UH, COMBINE THE TWO.

SO, UH, KEEP THAT IN MIND ON THE LEFT-HAND TOP, UH, YOU'LL SEE THE, UH, AND M BUDGET AND EMPLOYEE PERSPECTIVE, UM, FROM AN O AND M PERSPECTIVE.

UH, YOU CAN SEE IT'S BEEN RELATIVELY FLAT.

WE DO HAVE SOME UP UP FLUCTUATIONS, UM, IN O AND M AND ALSO IN CIP, SOMEWHAT ON A CYCLICAL NATURE AS WE GO THROUGH OUTAGE CYCLES, SOME PERIODS THAN OTHERS, BUT FOR THE MOST PART FLAT, UH, THE UPTICK IN 2020, UH, WAS RELATED TO THE, UH, ACQUISITION OF THE NACADOCIOUS FACILITY AS WAS NOTED.

THE DEBT IS ACTUALLY PASSED THROUGH, UH, IN THE POWER SUPPLY ADJUSTMENT.

HOWEVER, THE O AND M PIECE IS INCLUDED IN THIS.

AND SO

[00:30:01]

THAT, THAT UPTAKE THERE, UH, REFLECTS THAT.

UH, BUT BY AND LARGE, THE ONM ACTIVITY HAS REMAINED PRETTY FLAT FOR US ACROSS BOTH THE DIVISIONS.

OR YOU CAN SEE THE DOWNTREND IN EMPLOYEES.

THAT'S REFLECTING REDUCTIONS THAT WE HAVE, I'VE BEEN UNDERTAKING AT DECKER, AND YOU MAY RECALL WE RETIRED STEAM UNIT NUMBER ONE LAST YEAR, WE HAVE A PLAN TO RETIRE STEAM UNIT NUMBER TWO AT THE END OF THIS YEAR.

I THINK THAT TREND WILL CONTINUE A LITTLE BIT FURTHER DOWN.

ALTHOUGH KEEPING IN MIND, THIS IS A COMBINATION OF BOTH, UH, WORK GROUPS, UH, THAT WE'RE ADDING PLANTS ON THE DISTRICT COOLING SIDE.

SO WE'RE GOING TO SEE A LITTLE BIT ABOUT TAKES.

SO THAT TREND LINE MAY GO DOWN A LITTLE BIT MORE, BUT THEN FLATTEN OUT ON A COMBINED BASIS.

BUT OVERALL, WE'LL CONTINUE TO DRAW DOWN STAFF RELATED TO THE DECKER, UH, RETIREMENTS.

SO, UH, ON THE RIGHT-HAND SIDE CHART AGAIN, THAT THIS IS THE CAPITAL PERSPECTIVE.

UH, YOU CAN SEE THE UPTICKS IN 2020, AND THEN GOING ON, UH, THE BULK OF THOSE ARE DRIVEN BY IN THE NEAR TERM ARE DRIVEN BY, UM, UH, PLANT ADDITIONS FOR OUR DISTRICT COOLING FACILITIES.

SO, UH, WE ARE IN THE PROCESS OF COMPLETING, FOR EXAMPLE, DISTRICT COOLING PLANT NUMBER THREE, WHICH IS, UH, NEAR THE SEAHOLM, UH, OLD SEAHOLM FACILITY OF OUR LARGE FACILITY THERE WE'RE IN THE PROCESS OF COMPLETING, UM, DISTRICT COOLING, UH, A DISTRICT COOLING PLANT FOR ACC HIGHLAND, THEIR HIGHLAND CAMPUS.

UH, SO THE SPEND, UH, THERE'S BEEN, UH, THERE'S A FAIR AMOUNT OF SPEND THIS YEAR, BUT ALSO IN THE NEXT YEAR AS THOSE PLANTS MOVED TO COMPLETION, WE ALSO ARE IN THE PROCESS OF ADDING A NEW FACILITY OUT AT MUELLER AS WELL TO ACCOMMODATE GROWTH OUT THERE.

UH, SOME FURTHER NOTES ON THE, ON THE BOTTOM RIGHT THERE.

AND SOME OF THIS HAS ALREADY BEEN CAPTURED.

I TALKED ABOUT, UH, THE DISTRICT COOLING INCREASES.

WE ARE GOING TO EXPECT TO SEE A REDUCTION IN DECKER OPERATIONS.

REMEMBER THAT BLUE WE'RE RUNNING UP TO THE END OF THE YEAR AND WE HAVE ONGOING OPERATIONS THERE.

UH, SO THE, SO THIS WILL BE A PARTIAL YEAR FOR REDUCTIONS IN O AND M UH, IN ALL, IN ALL AT THE SAND HEALTH FACILITY WHERE WE'RE ADDING SOME CAPITAL EXPENSE THERE.

UH, I WOULD POINT OUT THAT AT THAT FACILITY WE'RE AT ABOUT MIDLIFE, IF YOU WILL, UH, THE GAS TURBINES THERE, DATE TO 2000, UH, THE COMBINED CYCLE OF 2005.

AND SO WE'RE AT A PERIOD WHERE WE'RE ADDING SOME CAPITAL EXPENSE TO REPLACE, UH, COMPONENTS THAT WERE OUT WITH, WITH USE.

SO I THINK WE CAN GO TO THE NEXT SLIDE.

GO AHEAD, MR. SWEETIE, UM, ON THE NACADOCIOUS PLANT.

UM, CAN YOU, CAN YOU GIVE ME A SENSE ABOUT WHAT THE ONGOING ONIN IS FOR THE, FOR THE PLANT ITSELF IT'S AROUND 15 MILLION.

AND, AND IS THERE ANY THOUGHT GIVEN TO, UM, I THINK, YOU KNOW, WHEN, WHEN WE, RIGHT AFTER THE STORM, WE HAD SOME CONVERSATION ABOUT, UM, YOU KNOW, WHY THAT PLANT, UH, COULDN'T RUN IN SCARCE CONDITIONS BECAUSE YOU KNOW, IT, IT WOULD REQUIRE, UM, I THINK DIFFERENT TYPE OF MAINTENANCE THAN WE HAD BEEN, UH, YOU KNOW, DOING.

IS THERE ANY THOUGHT GIVEN TO WHETHER ADDITIONAL ONM BUDGET WOULD ALLOW FOR IT TO BE, UH, MORE READILY, YOU KNOW, FLIP ON FASTER OR, OR, UH, YOU KNOW, I, YOU KNOW, SUBSEQUENT, SO THIS PAST, UH, WINTER SEASON, UH, WE, WE ACTUALLY INTENTIONALLY PUT THE FACILITY IN A MOCK BALL STATE.

SO OREGON HAS WHAT'S CALLED A, UM, WELL, IT WAS A SEASONAL MOTH BALL.

SO YOU CAN PUT THE, PUT A GENERATOR BASICALLY SAY, I'M NOT GOING TO RUN FROM ONE DAY TO ANOTHER.

UH, AND, AND WE DID THAT FROM OCTOBER THROUGH MAY.

AND SO THE UNIT WAS, UH, IN A, UH, STORE WAS IN A SAFE CONDITION TO CHECK THE EQUIPMENT AND SO ON AND SO FORTH.

WHEN THE WINTER STORM CAME UP, WE SIMPLY COULDN'T, UH, RESTORE TO OPERATION QUICKLY ENOUGH TO, TO BRING THE EQUIPMENT BACK TO LIFE AND, UH, AND, AND HAVE IT UP AND RUNNING.

ANOTHER ISSUE THERE IS, IS JEWEL SUPPLY.

UH, IT'S IN SIMILAR TO A COAL PLANT AND THAT YOU HAVE A PILE OF WOOD.

AND SO, AND, AND, AND THAT WAS UNDERTAKEN TO, TO REDUCE OUR EXPENSES.

SO BECAUSE THE, THE PLANT GENERALLY ONLY RUNS IN THE, IN THE I'M SORRY, IN THE SUMMER DURING HIGHER PRICES.

AND SO, UM, SO, UH, WE'RE LOOKING AT THAT, THAT THAT COULD BE A CHANGE FOR THIS UPCOMING WINTER.

WE'VE MADE SOME ADJUSTMENTS TO HOW RAPIDLY THE PLANT CAN COME ONLINE, BUT PRESUMING IT'S NOT IN A MOTHBALL STATE, UH, THAT MIGHT HELP THAT OUT.

UH, BUT THAT'S SOMETHING WE'RE ACTIVELY CONSIDERING.

OKAY.

THANK YOU.

SO I'VE GOT A QUESTION ABOUT THAT TOO.

SO, UM, I THINK LAST MONTH WHEN HER CAR WAS A LITTLE BIT SHORT AND CALLING FOR CONSERVATION, THAT WAS IN THE PERIOD THAT THE PLANT WAS NOT SUPPOSED TO BE MOTHBALLED, BUT WHAT WAS REALLY WRONG WITH IT, WHY COULDN'T CONTRIBUTE AND BE ONLINE THERE.

SO THAT WAS SO THE, THE END OF THE MULTIPLE PERIODS

[00:35:01]

MAY 15TH.

AND SO AT THAT POINT, THE PLANT, IF YOU'RE, IF YOU'RE, DON'T GO, YOU'LL FALL IN THAT PATH, IN YOUR THEN AVAILABLE.

UH, BUT THEN FROM AN AVAILABILITY STANDPOINT, UH, THE PLANTS STILL HAS ABOUT A MINIMUM DAY AND A HALF, UH, UP TO TWO DAYS OF STARTUP WHEN IT'S ALL OLD.

UH, AND WE HAD NOT PUT THE UNIT, UH, IN THAT CONDITION OR THE UNIT WAS AVAILABLE, UH, WITH A TWO DAY, TWO DAY COLOGNE.

SO TWO THINGS, UH, IT WAS NOT ON A PLANNED RUN BASIS DURING THAT FIRST WEEK OF JUNE WHEN THAT TIGHTNESS OCCURRED.

SO IT WASN'T PLANNING TO RUN.

UH, AND THEN AS, AS A CONDITIONS CAME ABOUT, WE DID MOVE TO A STARTUP IN THE NAVY, AND THEY INCURRED AN ISSUE THAT DELAYED THAT STARTUP BY ABOUT TWO DAYS THAT REQUIRED A PART TO BE SHIPPED IN.

AND SO, UNFORTUNATELY THAT MISSED THAT WINDOW, THAT, THAT EARLY JUNE WINDOW, UH, THE PLANT ACTUALLY THOUGH HAS BEEN ONLINE.

UH, NOW SINCE THAT TIME ON A SOLID BASIS, IT'S OPERATING AS WE SPEAK.

THANK YOU.

AND THEN, UM, WHAT ABOUT SOUTH TEXAS NUCLEAR PLANT? UM, DO WE ALREADY KNOW WHAT NEEDS TO BE DONE TO MAKE THAT MORE ROBUST AS FAR AS IT GOING OFFLINE IN FEBRUARY? AND, UM, IS THERE ALREADY SOMETHING IN THE BUDGET TO WINTERIZE IT MORE FULLY? WE BELIEVE THAT ISSUE IS TAKEN CARE OF.

THEY HAD A FAILED SYNCING LINE THAT, THAT THE INSTALLATION FAILED ON IT, UH, THAT WAS ADDRESSED.

IT WAS, UH, FORTUNATELY NOT, UH, WHILE IT WAS, IT CERTAINLY WAS EXPENSIVE, UH, IN TERMS OF THE OUTAGE, THE, UH, THE FIX, IF YOU WILL, AT LEAST IN OUR VIEW THAT WE THINK WE'VE ACHIEVED THERE, I WAS NOT USUALLY EXPENSIVE, BUT, UH, UH, WE WE'VE GOT OTHER ACTIONS THERE THAT THEY'RE REVIEWING TO, UH, MAKE ADDITIONAL CHECKS TO BE CERTAIN ABOUT THAT.

BUT AT THE MOMENT, I BELIEVE WE'RE, UH, WE'VE TAKEN CARE OF THE ISSUE THAT AROSE.

OKAY, THANK YOU.

WE'LL MOVE TO THE NEXT SLIDE.

WE HAVE THE SLIDE.

OKAY.

I'VE TOUCHED ON THIS A LITTLE BIT ALREADY.

THIS IS A LOOK AT THESE ARE HIGHLIGHTS.

SO THIS IS NOT ALL OF OUR CIP PLAN AND IT'S OVER THE FIVE-YEAR PERIOD.

UH, IF YOU LOOK AROUND THROUGH THERE, YOU'LL SEE THAT THREE OF THE FOUR LINES ARE DISTRICT COOLING RELATED.

UH, AGAIN, I TOUCHED ON THE FACT THAT, UH, WE HAVE A NEW FACILITY THAT WE'LL BE PUTTING IN AT MUELLER.

THAT'S THE FIRST LINE.

UM, THE NEXT LINE DOWN, I JUST, I MENTIONED AS WELL, THAT SANDHILL ENERGY CENTER IS, IS, UH, IS MOVING INTO ITS 20, 20, 25 YEAR RANGE.

AND SO WE HAVE SOME CAPITAL REPLACEMENT ACTIVITY THAT WE'RE UNDERTAKING IN THE COMING FISCAL YEAR AND SPREAD OUT OVER THE NEXT FEW YEARS.

UH, ALSO WE HAVE A DISTRICT COOLING PLANT, I'M SORRY, DISTRICT COOLING EXPANSION, PIPELINE ADDITIONS FOR CUSTOMERS DOWNTOWN, UH, AS THE NEXT LINE DOWN, COMING UP IN THE, IN THE NEAR YEAR.

AND THEN LASTLY, UH, WE DO HAVE ENOUGH RATE FOR SOME SWITCH GEAR OUT OF THE DOMAIN PLANT, UH, SOMEWHAT SIMILAR TO OTHER FACILITIES THAT PLANT OR THAT DOMAIN SITE.

UM, WE ACQUIRED IT ABOUT A LITTLE OVER 20 YEARS AGO, RIGHT? ABOUT 20 YEARS AGO, WE BOUGHT THAT SITE AND HAVE MADE MANY CHANGES WE'VE REPLACED, UH, ESSENTIALLY ALL THE CHILLER OPERATIONS AT THIS POINT WITH, WITH, UH, NEW CHILLERS.

UH, BUT, UH, BY WAY OF REFERENCE AGE WISE, THAT OVERALL SITE IS AT ABOUT 40 YEARS OLD OR SO.

AND SO THAT SWITCH GEAR IS VERY OLD, IT'S ORIGINAL EQUIPMENT.

UH, WE'RE, WE'RE CONCERNED ABOUT IT, YOUR LIABILITY AND SAFETY.

AND SO THAT IS A PLAN TO, TO SWITCH TO, UH, YOU KNOW, CHANGING THAT OUT TO, TO MODERN CURRENT EQUIPMENT.

SAME.

AND I BELIEVE WITH THAT, THAT'S ALL MY SLIDES, I BELIEVE.

UH, UM, PEERPOINT IS UP NEXT OR ELECTRIC SYSTEM DELIVERED, UNLESS THERE'S QUESTIONS CHAIR, TOM PEERPOINT SHOULD BE AVAILABLE NOW.

THANKS.

HOPEFULLY YOU ALL CAN SEE ME.

OKAY.

AND HEAR ME OKAY.

I BELIEVE ME, I'M, UH, TOM PEERPOINT VICE PRESIDENT ELECTRIC SYSTEM ENGINEERING IN AUSTIN ENERGY.

UM, I'M GOING TO BE TALKING ABOUT THE BUDGET, UH, FOR ELECTRIC SYSTEM DELIVERY, UH, ON BEHALF OF MYSELF AND ELTON RICHARDS, WHO'S VICE PRESIDENT OF FIELD OPERATIONS.

UM, THE ESD OR ELECTRIC SYSTEM DELIVERY BUDGET CONSISTS OF TRANSMISSION DISTRIBUTION, SUBSTATIONS, AND CUSTOMER DRIVEN PROJECTS FOR O AND M BUDGET, WHICH IS ON THE, UH, UPPER LEFT-HAND SIDE OF THE CHART.

UM, WE'RE LOOKING AT, UM, UH, AN INCREASE FROM ONE ABOUT 129 MILLION

[00:40:01]

TO $141 MILLION.

UM, THE, UH, THE PRIMARY DRIVERS OF THIS ARE, UM, UH, STAFFING INCREASES.

WE'VE HAD A VERY RAPID GROWTH IN THE AUSTIN REGION, UH, WHICH IS ONGOING AND PRETTY CONTINUOUS.

UM, WE'RE LOOKING AT, UM, UH, 29 NEW FULL-TIME EQUIVALENTS IN THE BUDGET, UH, THAT WILL BE OFFSET, UH, UH, BY, YOU KNOW, REIMBURSEMENTS CUSTOMER REIMBURSEMENTS FOR CONTRIBUTIONS IN AID OF CONSTRUCTION CIAC AND THAT'LL OFFSET SOME OF THE FINANCIAL IMPACT.

ANOTHER ITEM IS WE'RE LOOKING AT 2.2 MILLION INCREASE FOR DISTRIBUTION, UM, DESIGNER CONTRACTORS, UH, TO KEEP UP WITH GROWTH.

AND AGAIN, THAT'S ANOTHER ITEM IT'S, UH, UH, WHERE A CIAC OFFSET SOME OF THE IMPACTS.

AND THEN, UH, WE'RE LOOKING AT 1.7 MILLION FOR A SMART GRID NETWORK, MAINTENANCE AND SECURITY, A $1 MILLION POLE INSPECTION CONTRACT, AND A 1 MILLION INCREASED FOR COMPUTER HARDWARE MAINTENANCE, UH, TO REPLACE, UH, AGING, UH, UH, SYSTEMS, UM, IN OUR, UH, IN THE O AND M COMPONENT.

WE'RE LOOKING AT, UM, ABOUT 22 MILLION, A LITTLE OVER $22 MILLION IN LINE CLEARING YOUR VEGETATION MANAGEMENT, UM, FOR FYI 20, 22, IF I COULD, I'LL TALK ABOUT THE CIP BUDGET IN THE UPPER, RIGHT.

THE CAPITAL BUDGET, UM, WHERE, UH, OUR CURRENT LEVEL, UH, FOR THIS FISCAL YEAR IS ONE 40 MILLION.

UM, WE'RE GOING TO, UH, UH, TO 200, 4 MILLION.

UM, AND I'LL TALK ABOUT SOME OF THE DRIVERS HERE IN THE NEXT SLIDE.

COULD YOU, UM, JUST, UH, EXPLAIN WHAT THE ACTUAL COMPARED TO BUDGET IN THE 2020, UM, BAR GRAPH THERE? W W WHAT WAS THE DIFFERENCE? WHAT WAS THAT BIG? IT CLEARLY, UH, IT LOOKED LIKE ACTUALLY WAS ALMOST DOUBLE, OR IT WAS A LOT HIGHER THAN BUDGETED IN 2020 SURE THING.

CAN WE GO BACK ONE SLIDE? IS THAT, IS THAT THE, THE, THE BAR CHART ON THE UPPER, RIGHT? YES.

YEAH.

YEAH.

SO THAT'S DOUBLE SORRY, BUT HIGHER IT'S, IT'S A BIG INCREASE.

SO THIS IS, UM, THIS IS A CAPITAL BUDGET, THE, UM, CIP, UM, AND THIS IS RELATED TO BIG PROJECTS, UM, W WHICH I'LL TALK ABOUT IN THE NEXT SLIDE, BUT AS I MENTIONED, IT IS A SIGNIFICANT INCREASE.

IT'S GOING FROM A, ROUGHLY ONE 43 MILLION TO 204 MILLION.

UM, SO IT IS A BIG INCREASE IN, UH, AGAIN, IF WE, WE ADVANCED IN THE NEXT SLIDE, I'LL WALK THROUGH SOME OF THOSE, AND THIS MAY ALSO HELP TO ANSWER DAVE'S QUESTION FROM EARLIER TOO.

SO IN SOME OF THE AREAS WHERE WE HAVE INCREASES, WE HAVE ONGOING, UH, META REPLACEMENTS FOR THE AMI AS, AS WE, UM, GO TO THE, AS WE TRANSITION OUT ORDER METERS AND PUT A NEWER METERS, UM, TO GO TO THE CURRENT TECHNOLOGY.

UM, SO THAT'S AN ONGOING PROJECT.

UM, WE HAVE, UH, TWO, WE ACTUALLY HAVE FOUR SUBSTATIONS, UM, ON YOUR WAY, WHICH IS A BIT OF A BOW, THE TWO BIGGER ONES, MONEY WISE, RAINY STREET, AND SISTER AND SUBSTATIONS ARE HERE IN THE CHART.

UM, BUT AGAIN, WE ALSO HAVE TWO OTHERS.

UM, SO THERE'S, THERE'S A BIG BUMP ON THE SUBSTATION SIDE, AND THAT'S DRIVING BOTH TRANSMISSION CAPITAL AND DISTRIBUTION CAPITAL.

UM, TODAY'S, UH, QUESTION, WE HAVE AN OVERHEAD RELIABILITY PROGRAM.

UM, WE STARTED FINDING THAT PRETTY MUCH MORE AGGRESSIVELY IN FYI 21, AND WE'RE INCREASING IT FURTHER IN FYI, UH, 20, 22.

UM, SO THAT'S TO, UH, IMPROVE THE RELIABILITY ON THE OVERHEAD SYSTEM.

WHAT DID WE CLOSURES, UH, SOME SECTIONALIZING ET CETERA.

AND, UH, ANOTHER BIG ITEM DOWN AT THE VERY BOTTOM IS TO DUNLAP AUTO TRANSFORMER.

WE ACTUALLY HAVE, UM, UH, ABOUT FOUR PROJECTS LIKE THIS, WHERE WE'RE EITHER ADDING TRANSFORMERS OR BUILDING OUT A SUBSTATION, UM, UH, TO IMPROVE CAPACITY.

SO A NUMBER OF INCREASES IN THAT AREA, AND ANY SENSE ABOUT, UM, WHERE WE ARE ON THE 20, 21, UH, BUDGET, UH, TO, TO ACTUAL SPEND, OR WE SORT OF TRACKING A BUDGET FOR, FOR 2021.

OR DO YOU HAVE ANY SENSE ABOUT THAT? YES.

I BELIEVE WE'RE TRAPPING AT THIS TIME.

WE CAN GET SPECIFIC DETAILS BACK TO YOU IF YOU'D LIKE A QUICK QUESTION ON THE METER REPLACEMENTS, IS THIS NEWEST GENERATION, WHAT ARE THE FEATURES THAT THE NEWEST METERS PROVIDE TO THE, UM, UH, TH THE NEWER METERS IT'S, UM, UM, YOU KNOW, FULL TWO-WAY COMMUNICATIONS IT'S IT'S, UM, UH, PROVIDING INCREASED AMOUNTS OF, UH, TELEMETRY BACK,

[00:45:01]

UM, THAT WE CAN PICK UP, UM, YOU KNOW, UH, FURTHER TELEMETRY ON AVERAGES, DETECTING OUTAGES AND REPORTING BACK ON OUTAGES.

UM, SO THOSE ARE REALLY THE, THE PRIMARY, UM, ITEMS, COMMISSIONER TITLE, ANY OTHER COMMENTS? QUESTIONS.

OKAY.

THANK YOU SO MUCH.

I'D LIKE TO TURN IT OVER TO THE LANE TO STOP NEXT.

HELLO THERE? GOOD EVENING.

COMMISSIONERS.

CAN YOU HEAR ME? YES, I THERE, UM, I'M ELENA SALKA AND I, IF WE CAN GO TO THE NEXT SLIDE, I'M GOING TO BE PRESENTING A COUPLE OF SLIDES TO YOU TONIGHT, BECAUSE I'M GOING TO BE SPEAKING ON BEHALF OF CUSTOMER CARE SERVICES, CUSTOMER ACCOUNT MANAGEMENT, AND CUSTOMER ENERGY SOLUTIONS.

SO THE FIRST SLIDE UP IS THE COMBINED CUSTOMER CARE UNITS.

UM, YOU'LL SEE THAT, UM, WE HAVE TWO MAIN ITEMS TIED TO OUR APPOINTMENT TO BUDGET INCREASE.

UH, THE FIRST IS THE ADDITION OF 20 FTES TOTAL.

UM, THOSE ARE NOT NEW FT.

WELL, THEY'RE NEW FTES, BUT THEY'RE CONVERSION OF EXISTING RESOURCES FROM CONTRACTORS TO, UH, CITY FTES.

AND THAT COVERS 15, UH, FOR THE UTILITY CONTACT CENTER AND 3, 1, 1, AND FIVE, AND SUPPORT OF BACK OFFICE AND TRAINING FUNCTIONS.

THE SECOND AREA OF INCREASES MOSTLY A ONE TIME COST ASSOCIATED WITH CITY OF AUSTIN UTILITIES, CUSTOMER SYSTEMS. UM, AND THAT INCLUDES ABOUT 1.8 MILLION FOR AN UPGRADE OF OUR MOBILE WORKFORCE MANAGEMENT SYSTEM, WHICH IS OUR, UH, FIELD, UM, WORKFORCE PLANNING AND ORDER MANAGEMENT SYSTEM.

THAT'S USED ACROSS SEVERAL UNITS.

UM, WE WILL BE TRANSITIONING FROM, UH, ORACLE MOBILE WORKFORCE MANAGEMENT, WHICH IS A PRODUCT THAT'S NO LONGER SUPPORTED TO ORACLE, UH, CLOUD, UH, FIELD SERVICES.

WE ALSO HAVE 1.6 MILLION, UM, FOR, UH, CCNB THAT'S OUR CUSTOMER CARE AND BILLING OUR CITY OF AUSTIN UTILITIES BILLING SYSTEM, UM, FOR ADDITIONAL LICENSES, THAT'S ABOUT 600,000 OF THAT, AND THEN 1 MILLION FOR UPGRADES, AND THEN A ONE-TIME 3 MILLION, UH, INCREASE IN SOFTWARE AND LICENSES TIED TO DIGITAL SELF-SERVICE.

SO THAT'S DSS, THAT'S OUR CUSTOMER FACING PORTAL, AND THAT PAYS FOR DEVELOPMENT AND SERVICES AND ADDITIONAL MODULES THAT WILL GIVE INCREASED FUNCTIONALITY TO OUR END USE CUSTOMERS ON THAT, ON THE RIGHT SIDE, YOU'LL SEE WE HAVE A HUNDRED THOUSAND DOLLARS INCLUDED IN OUR FIVE-YEAR CIP PLAN, UM, FOR, UM, NEXT YEAR THAT WILL BE CLOSED OUT.

UM, THAT COST IS TIED TO THE REPLACEMENT OF OUR INNOVATIVE, INTEGRATED VOICE RESPONSE SYSTEM, WHICH IS OUR IVR, UM, IN FY 22 WE'LL WE WILL BE GOING LIVE WITH A PRODUCT CALLED GENESIS THAT, UM, WILL SUPPORT, UH, UH, CUSTOMER SELF SERVICE BY ALLOWING CUSTOMERS TO DO THINGS VIA THE PHONE.

LIKE A, I THINK THEIR PHONE NUMBER ENROLL IN PROGRAMS LIKE AUTO PAY AND BUDGET BILLING, AND, UH, STOP, UH, UTILITY SERVICES.

THERE ARE ANY QUESTIONS ON CUSTOMER CARE AND CUSTOMER ACCOUNT MANAGEMENT, YOU BET.

HEY, SO DO YOU STILL DO THE BILLING FOR THE WATER ALSO? YES.

PITY UTILITY FEES? YES.

OKAY.

SO I'M IN THIS PILOT FOR THE SMART WATER METERS, AND IT'S GREAT.

I JUST WONDER IF THAT'S ALSO HELPING, GIVEN WHAT WE WENT THROUGH COLLECTIVELY A FEW YEARS AGO, HOW THAT'S AFFECTING YOUR PART OF THE BUSINESS, AND THEN HOW IS THIS GOING TO ROLL OUT TO WHERE MORE AND MORE OF THE COMMUNITY HAVE THESE SMART WATER METERS AND HOW CAN THAT HELP IMPROVE YOUR, YOUR PART OF IT? SURE.

SO I THINK, UM, YOU KNOW, WE, WE ARE ON THE, UM, AS YOU MENTIONED, THE PILOT PHASES OF, UH, AUSTIN WATERS, AMI PROJECT, UM, I BELIEVE IT'S STILL PROJECTED TO BE A FIVE-YEAR PROJECT GOING INTO, I THINK, 20, 25.

UM, IT, WE, WE WILL BE GETTING, UM, THE, THE, UM, UH, NITA READS AND, YOU KNOW, 15 MINUTE INCREMENT DATA, THOSE TYPES OF THINGS BACK INTO OUR SYSTEMS. SO IT WILL ALLOW US, UM, EASIER ACCESS TO, YOU KNOW, SEE A METER, READ, SEE THE METER AND LOOK AT THE BEHAVIOR OF, OF WATER USAGE VERSUS GETTING THE ONE TIME A MONTH, THREE THAT'S THAT'S DONE MANUALLY.

UM, WE'RE WORKING TO ALSO, UM, AUSTIN WATER HAS A, MY WATER SMART PORTAL THAT THEY'RE USING WHERE CUSTOMERS CAN, CAN DO SOME ACTIONS AND, AND REVIEW SOME THINGS VERY SPECIFIC TO THEIR WATER ACCOUNTS.

[00:50:02]

WE'RE ALSO WORKING TO INTEGRATE THAT WITH OUR, UH, ONLINE CUSTOMER CARE PORTAL, OUR DSS PRODUCT.

UM, SO CUSTOMERS CAN STILL HAVE ONE PLACE TO GO YET, GET ALL THE INFORMATION THAT THEY NEED.

OKAY, THANK YOU.

OKAY.

I'M JUST SORT OF CURIOUS ABOUT WHAT WAS TO BE LIKE A MISMATCH BETWEEN, UH, THE, THE PLAN ON THE ACTUAL DOLLAR SPENT, UH, THE LAST FIVE YEARS ON THE TOP, RIGHT? IT LOOKS LIKE WE'RE WAY UNDER BUDGET ON THE ACTUAL SPEND, UM, IN 17, 19 AND 20, AND I BELIEVE THE, UM, 20 AND 21 ARE TIED TO, UM, THE GENESIS, AS I MENTIONED, THE IVR, I WANT TO SAY AN FYI 19, AND MAYBE A PORTION OF 20.

WE HAD ONE OF OUR UTILITY SERVICE CENTERS, SOME OF THE FACILITY COSTS POTENTIALLY IN THE CUSTOMER CARE BUDGET AND THAT MOVED TO FACILITIES.

UM, BUT I'LL BE, AND THAT MAY BE WHERE THE DISCREPANCY IS, BUT WE'LL BE GLAD TO CHECK INTO THAT AND GET BACK WITH YOU.

OKAY.

THANKS.

SURE.

YES.

AND CUSTOMER CARE AND CUSTOMER ACCOUNT MANAGEMENT TYPICALLY, BUT, YOU KNOW, UH, UH, PROJECTS SUCH AS THAT ON CUSTOMER CHARACTER IS, ARE STILL GOING TO BE A DROPBOX, UH, UH, NEAR IN THE DOWNTOWN IN THE DOWNTOWN.

YES.

UH, COMMISSIONER CHAPMAN.

WE STILL HAVE DROPBOXES AVAILABLE, UM, UH, NIGHT DROP PATIENTS, AS WELL AS, UM, W ONE TEXAS CENTER, WHICH IS DOWN THE STREET FROM TOWN LAKE CENTER.

AND WE ALSO HAVE ONE AT WALNUT CREEK PLAZA, WHICH IS WHERE AUSTIN WATER HEADQUARTERS ARE.

OKAY.

COULD WE MOVE TO THE NEXT SLIDE PLEASE? FOR CUSTOMER ENERGY SOLUTIONS FOR CUSTOMER ENERGY SOLUTIONS, THE BUDGET FOR FY 22, UM, REMAINS MAINLY STABLE, UM, TO THE PRIOR YEAR.

UM, IT CONTINUES TO ENSURE THAT WE, UH, MEET OR EXCEED, UH, THE COUNCIL AND GYM PLAN GOALS, UM, INCLUDING SOLAR INCENTIVE BUDGET, UH, TO SUPPORT THE 12 MEGAWATT TARGET.

UM, THE, UM, BUDGET DOES HAVE AN UPTICK IN THE NUMBER OF FTES.

WE'LL BE ADDING FIVE NEW FTES TO CUSTOMER ENERGY SOLUTIONS.

THERE'LL BE ONE IN KEY ACCOUNTS MANAGEMENT WHEN M UH, AS A SECTOR AND THEN, UM, THREE IN OUR ENERGY EFFICIENCY AREA.

AND THESE FTES WILL HELP US SUPPORT OUR CUSTOMER FACING PROGRAMS AND ONGOING CUSTOMER GROWTH.

ON THE RIGHT HAND SIDE, YOU'LL SEE OUR CIP PLAN.

UM, AGAIN, VERY SIMILAR TO CUSTOMER CARE AND CUSTOMER ACCOUNT MANAGEMENT, NOT, NOT TYPICALLY HUGE CIP PLANS, BUT THE FUNDING THAT IS, UH, SHOWN HERE IS TIED TO OUR ELECTRIC VEHICLE INITIATIVES.

AND THIS WILL COVER DC FAST CHARGING AND LEVEL TWO CHARGING STATIONS.

AND WITH THAT, I'M GOING TO TURN IT OVER TO MANNY GARZA WHO WILL GO, UM, OVER OUR ENERGY EFFICIENT C UH, PROGRAM ITEMS SHOULD BE ON.

NOW, CAN YOU ME A COMMISSIONERS? CAN YOU HEAR ME? YES, WE CAN HEAR YOU.

NEXT SLIDE PLEASE.

SO, EMMANUEL GARZA, I GO ON MANNY.

I MANAGE THE COMMERCIAL MULTIFAMILY AND SMALL BUSINESS PROGRAMS ALONG WITH OUR COMMERCIAL DEMAND RESPONSE.

UH, THIS SLIDE DEPICTS A PROPOSED ITEMIZED INCENTIVE BUDGETS FOR CES.

UM, SOME OF THE VARIANCES, UH, I'LL SPEAK TO SO FUNDING FOR LIMITED INCOME WEATHERIZATION IN AGGREGATE INCREASES BY 300,000 AND THAT'S DUE TO AN INCREASED PARTICIPATION.

UM, OUR LOAD CO-OP PROGRAM, WHICH IS OUR CNI DEMAND RESPONSE PROGRAM SHOWS AN INCREASE OF 150,000, AND THIS WILL CONTINUE TO INCREASE YEAR OVER YEAR, AS WE RAMP UP TO MEET THE 225 MEGAWATT GOAL LAID OUT IN THE GEN PLAN.

UH, OUR, OUR HOME PERFORMANCE WITH ENERGY STAR PROGRAM, UH, IS INCREASING BY A HUNDRED THOUSAND AS WE'VE SEEN AN ADDED INTEREST IN WHOLE HOME PROGRAMS. AND THAT'S IN CONJUNCTION WITH OUR 0% INTEREST LOANS RIGHT NOW.

UM, OUR, OUR APPLIANCE EFFICIENCY PROGRAM REDUCTION IS RELATED TO A SLOW IN PARTICIPATION IN THIS AREA, UH, BUT THAT MONEY IS BEING REALLOCATED TOWARDS WEATHERIZATION.

SO OUR LIMITED INCOME WEATHERIZATION, UH, OUR WATER HEATER TIMER PROGRAM IS BEING SUNSET.

UH, YOU KNOW, AS IT IS A CODE REQUIREMENT.

AND AS WE TRANSITION TO TWO WAY WATER HEATER CONTROL, UH, WE HAVE A DOE GRANT THAT WE'RE ABOUT TO KICK OFF IN THE MULTIFAMILY SECTOR TO START TO PILOT THIS TYPE OF, UH, RESOURCE, UH, AND, UH, WITH, UH,

[00:55:01]

AN EYE ON EQUITY, TRYING TO SERVE LOW INCOME IN THAT, UH, BRAND AS WELL.

UH, IN OUR STRATEGIC PARTNERSHIP WITH UTILITIES AND RETAILERS OR OUR SPUR PROGRAM CHOSE A DECREASE OF 150,000, UH, WHICH IS BEING MOVED TO OUR PARTNERS IN EVENTS, UH, WHERE WE WILL PROVIDE DIY KITS AND OTHER OFFERINGS TO LEVERAGE ADDITIONAL CHANNELS, TO REACH MORE CUSTOMERS, UH, NOW MORE THAN EVER.

UM, AND SO ALL OF OUR OTHER INCENTIVE, UH, BUDGETS REMAIN FLATS AND, UH, QUICK QUESTIONS, I'LL BE SURE I'M THE WEATHERIZATION.

WHAT DOES STAND FOR? UH, DIRECT INSTALL.

IT'S OLD NOMENCLATURE.

UH, OKAY.

UM, WELL, I'M GLAD YOU'RE INCREASING THAT BUDGET CAUSE THAT'S THE ONE THAT CAN DIRECTLY HELP PEOPLE A LOT.

UM, WHERE I DON'T KNOW IF IT'S IN THIS BUDGET.

UM, I KNOW YOU GUYS ALSO OBVIOUSLY HAVE A, A GREEN BUILDING PROGRAM.

THAT'S NOT REALLY INCENTIVE-BASED, BUT IT'S SORT OF AN INCENTIVE IN TERMS OF THE, YOU KNOW, THE STARS THAT YOU CAN GET.

IS THAT, IS THE BUDGET FOR THE GREEN BUILDING PROGRAM WITHIN ENERGY EFFICIENCY, OR IS THAT, IS IT IN CUSTOMER SERVICE? WHERE IS IT ACTUALLY? WHERE IS IT REFLECTED IN THESE DOCUMENTS? YEAH, SO IT WOULD BE THE, THE CES, UH, THE ONE RIGHT BEFORE.

AND SO IT'S REALLY ONLY BECAUSE WE DON'T, WE DON'T ANY INCENTIVES, THERE'S NO INCENTIVE AS I JUST LAID OUT HERE, IT'S REALLY JUST A PEOPLE AND THEN CONTRACTS AND THAT WOULD BE LAID OUT IN CES, THE AGGREGATE.

OKAY.

BUT YOU FEEL AS THE PREVIOUS SPEAKER SAID, YOU FEEL LIKE WAS THIS PROPOSED BUDGET, YOU CAN MEET THE, THE, BOTH THE DEMAND GOALS, BUT ALSO THE ENERGY SAVINGS GOALS, THE 1% WITH THIS BUDGET.

YEAH.

BUT THE 1% FOR THE ENERGY SAVINGS GOALS, WE WERE VERY CONFIDENT IN.

UM, BUT WHAT WILL WE'LL SEE OVER TIME IS THAT, UM, WE'RE GOING TO SEE DIMINISHING RETURNS IN THE DEMAND SIDE, UM, YOU KNOW, AS CODES GETTING, UH, MORE STRINGENT.

UM, SO OUR ENERGY CODE SAVINGS WILL GO DOWN.

UM, AND THEN OBVIOUSLY AS MARKET TRANSFORMS, IT GETS HARDER AND HARDER TO GET ADDITIONAL DEMAND SAVINGS, BUT YEAH, WE'RE ON TRACK TO MEET THE 1200 MEGAWATT AND WE BELIEVE THAT WE'RE GOING TO GET THERE IT'S JUST YEAR OVER YEAR IS GOING TO GET, UH, MORE EVER MORE CHALLENGING AND BANKS.

THERE'S NO OTHER QUESTIONS.

I'LL HAND IT OVER TO JOHN DAVIS, SO GO OVER SUPPORT SERVICES.

OKAY.

THANK YOU, MANNY.

NEXT SLIDE PLEASE.

NEXT SLIDE PLEASE.

SORRY.

THANK YOU.

OKAY.

OPERATING AND MAINTENANCE EXPENSE COSTS, UH, ON THE LEFT AGAIN, UH, THIS SLIGHTLY THAT JUST LIKE THE OTHERS AND, UH, THE CIP BUDGET IS ON THE RIGHT OF THE YELLOW LINE THAT YOU SEE OVER IN THE ONM SIDE IS REFLECTING A BIT OF AN UPTICK AND THAT'S RELATED TO THE EMPLOYEE COUNT IN THIS GROUP.

UH, AGAIN, THIS IS FOR SUPPORT SERVICES.

IT SUPPORTS CORPORATE COMMUNICATIONS, UH, FACILITIES, FLEET, SUPPLY CHAIN, UH, HR, CORPORATE QUALITY, GENERAL MANAGERS, OFFICE FINANCE, A NUMBER OF SHARED SERVICES DEPARTMENTS.

UM, AND YOU'LL SEE AN UPTAKE IN THE EMPLOYEE COUNT.

AND THIS WILL SPEAK TO WHAT WE TALKED ABOUT EARLIER THAT, UH, WE ARE PLANNING ON AN INCREASE IN EMPLOYEE COUNT OF 31 POSITIONS.

HOWEVER, 24 OF THOSE 31 POSITIONS ARE REPLACING CONTRACTOR EXPENSES.

SO, UH, AGAIN, UH, WE'RE JUST LIKE WE'RE ADDING A LOT OF EMPLOYEES, BUT IT'S REPLACING A LOT OF CONTRACTORS, UM, INCLUDED IN THE CIP PLAN IS 35 MILLION PRIMARILY RELATED TO, UM, THE NEW AG WAREHOUSE.

UH, AND THAT'S BUDGETED FOR IN FYI 22 AND 23.

UM, ALSO, UH, YOU'LL SEE THAT WE'VE GOT A 1.2, $4 MILLION INCREASE IN PROPERTY AND CASUALTY INSURANCE PREMIUM.

SO UNLIKE THE EMPLOYEE BENEFITS WE SPOKE ABOUT BEFORE WE DID SEE AN UPTICK, UPTICK AND PROPERTY CASUALTY INSURANCE PREMIUMS. UM, THAT'S ABOUT ALL THE HIGHLIGHTS FOR THAT SLIDE.

UM, UNLESS THERE'S ANY QUESTIONS AND IF NOT, UM, I'M GONNA GO AHEAD AND HAND IT OFF TO, UM, GREG PLAY, AS YOU KNOW, IT IS A KEY COMPONENT OF SUPPORT SERVICES.

AND SO I'M GOING TO ENDED UP OFF THE GRID, PLAY OUR TECHNOLOGY AND DATA VICE PRESIDENT, AND HE'S GONNA HIS BUDGET SUMMARY.

NEXT SLIDE PLEASE.

GOOD EVENING COMMISSIONERS.

UH, I'M GREG VICE PRESIDENT OF TECHNOLOGY AND DATA.

I'D LIKE TO PRESENT THE HIGHLIGHTS OF THE FY 2022 INFORMATION TECHNOLOGY BUDGET IN THE UPPER LEFT HAND CORNER.

YOU CAN SEE THAT THE FYI 2022 OWNING BUDGET IS IN LINE WITH PRIOR

[01:00:01]

FISCAL YEARS.

THE SLIGHT INCREASES ARE RELATED TO TWO TECHNOLOGY INITIATIVES, THE STRATEGIC TRANSFORMATION INFRASTRUCTURE ROADMAP, OR STIR PROGRAM, AS WELL AS THE IDENTITY GOVERNANCE PROGRAM.

THESE TWO PROGRAMS FOCUSED ON TRANSFORMING OUR TECHNOLOGY INFRASTRUCTURE AND DATA CENTERS ENHANCING OUR CYBER SECURITY POSTURE AND IMPROVING CLOUD READINESS AND BUSINESS CONTINUITY.

WE'LL ALSO BE ADDING SEVEN NEW FTES TO FOCUS ON IMPROVING OPERATIONS DELIVERY OF ENTERPRISE PROJECTS AND CONTINUED IMPROVEMENT AROUND CYBER SECURITY IN THE UPPER RIGHT HAND CORNER.

YOU CAN SEE THE CIP PROGRAM EXPENSES DECREASE, AND THAT'S WHY 22, AS WE MOVE INTO THE FINAL IMPLEMENTATION PHASES OF A STIR AND IDENTITY GOVERNANCE PROGRAMS, UNLESS THERE ARE ANY QUESTIONS, I WILL TURN IT OVER TO JOHN DAVIS TO COVER PROPOSED TARIFFS AND FEES.

YEAH, BUT THIS IS THIS PAUSE ON THIS BECAUSE RANSOMWARE IS SUPPOSEDLY RAMP RAMP HIT AND EVERYTHING.

I JUST WANT TO MAKE SURE THAT YOU HAVE ALL THE MONEY, YOU NEED TO DO THE BEST JOB POSSIBLE TO AVOID A SITUATION, UM, THAT WE KEEP READING ABOUT.

SO PERVASIVELY, YOU KNOW, THE RANSOM AND THE CIP, AND ARE THERE ANY NEW INITIATIVES THAT WILL BE COMING DOWN THE PIKE THAT YOU NEED FUNDING FOR? HOW DO WE PROTECT OURSELVES FROM THIS? WHAT ARE YOU? YOU DESCRIBE MORE OF THE THINGS YOU'RE DOING? SURE.

YEAH.

AT A HIGH LEVEL, WE'RE MOVING, UH, FROM MORE OF A, A BREED, UH, CYBER SECURITY DEFENSE TO MORE OF AN INTEGRATED, UH, CYBER SECURITY DEFENSE THAT, UM, ALLOWS ESSENTIALLY, UH, ONE KIND OF PROGRAM TO TALK TO ANOTHER KIND OF PROGRAM AND PASS ALONG INFORMATION WHICH CAN USE, UH, WHICH THE OTHER APPLICATION CAN USE TO BETTER PROTECT, UH, OUR, OUR, UH, DATA ASSETS.

SO WE HAVE QUITE A NUMBER OF, UM, UH, PROJECTS, UH, IN QUEUE TO CONTINUALLY IMPROVE.

UM, WE'RE CURRENTLY A LITTLE AHEAD OF THE PACK AND WE'RE STRIVING TO GET TO ESSENTIALLY TOP OF THE PACK RELATIVE TO PEER UTILITIES AND CYBERSECURITY POSTURE.

OKAY.

THANK YOU WITH THAT.

I'LL TURN IT OVER TO JOHN DAVIS TO COVER PROPOSED TARIFFS AND FEES.

THANK YOU.

NEXT SLIDE, PLEASE.

ONE MORE.

THANK YOU.

HERE'S A SUMMARY OF THE PROPOSED TARIFF AND FEE CHANGES.

UH, WE KNOW THAT THIS DOESN'T ADDRESS ALL THE FEES THAT WE KNOW ARE STILL COMING LIKE THE PSA AND THE REGULATORY CHARGES THAT WILL APPEAR ON THE CUSTOMER'S BILLS.

UM, DCS ARE ALL COST BASE AND GOOD NEWS IS IN GENERAL.

UH, THE FEES HAVE ALL DECLINED WITH THE EXCEPTION OF THE VERY FIRST ONE THAT HIT DAMAGED PAD MOUNTAIN TRANSFORMER.

UM, SO WE'VE HAD GOOD EXPERIENCE THERE.

THE VERY LAST FEE, UH, SHARED SOLAR SETUP.

IT'S NOT GOING FROM NOT CHARGING TO $17.

IT'S ACTUALLY A NEW FEE.

IT WAS IN THE PILOT STAGE IN THE PRIOR YEAR AND IS NOW ROLLING OUT.

UH, SO THAT'S A NEW FEE THAT'S BEING CHARGED AND IS RELATED TO A ONE-TIME SETUP FEES FOR, UM, SOLAR ON, UM, APARTMENT COMPLEXES.

MULTI-FAMILY MULTI-FAMILY HOUSING IN THE FOOTNOTES.

UM, PLEASE NOTE THAT WE'RE PROPOSING THAT THE CAP DISCOUNT RATE, UH, GO BACK DOWN TO 10%.

IT WAS AT 15% DURING COVID, BUT WE'RE PROPOSING TO GO BACK DOWN TO 10%.

UM, AND WHEN WE TALKED ABOUT THE PSA RATE, UH, THOSE WILL BE ADDRESSED LATER IN SEPTEMBER.

OKAY.

NEXT SLIDE PLEASE.

WHAT IS A BILL WHEN I REDUCE FIVE? YOU KNOW, ONE MORE TIME, I'M SORRY.

UH, UH, REDUCING THE CASH OUT FROM 15% TO 10.

UH, BUT IT'S THE BILL IMPACT OR THE AVERAGE CUSTOMER.

DO YOU HAVE A SENSE? ALL THEIR BILLS ARE GONNA GO UP.

I WOULD LIKE TO SAY 5%, BUT THAT'S SOMETHING FUNNY, BUT, UM, UH, I WILL GET THAT NUMBER FOR YOU.

I MEAN, UM, BASICALLY THE, THE CAP DISCOUNT, UH, PROVIDES A DISCOUNT TO REMOVE THE COMMUNITY BENEFITS CHARGE IN SOME OF THE, UM, REGULATORY CHARGES OFF THE CUSTOMER'S BILL.

UM, BUT I'LL GET THE FOLLOW UP ON THAT WITH THE DIFFERENCES BETWEEN THE 10%, 15% AVERAGE IMPACT ON THE CUSTOMER BILL.

OKAY, GOOD QUESTION.

OKAY.

NEXT SLIDE.

OKAY.

SO THIS CHART IS SHOWING, UH, THE CUMULATIVE EFFECT OF THE OVER-UNDER COLLECTION,

[01:05:01]

AS WELL AS THE CURRENT, UM, UH, PURCHASE POWER RATE PER KILOWATT HOUR.

AND, UM, YOU COULD SEE THAT THIS GETS UPDATED IN A LITTLE BIT OF A LAG, WHICH IS WHY YOU'RE NOT GOING TO, WE'RE NOT GOING TO COME TO YOU UNTIL THE END OF SEPTEMBER, UH, FOR WHAT THE CURRENT, UM, PSA RATE SHOULD BE.

SO THE LAST UPDATE THAT WE HAVE IS AS OF APRIL, 2021, AND IT SHOWS AN OVERCLOCKED THE BALANCE, UH, FOR THE OVER-UNDER COLLECTION.

SO AGAIN, WE'LL TALK ABOUT THE IMPACT OF THAT, UM, IN SEPTEMBER.

UM, AND AGAIN, THE MESSAGE APPEAR ON THE CALL AT LABELS OR THE PARTS SUPPLY ADJUSTMENT, UH, THAT WAS IN EFFECT RELATIVE TO THE OVER-UNDER COLLECTION.

UM, JUST FALLING BACK UP ON THE QUESTION WAS ASKED EARLIER.

UM, I DID FIND OUT THAT THE, UM, NON NUCLEAR DECOMMISSIONING COSTS THAT PERTAINS TO ALL NON-NUCLEAR FACILITIES, NOT JUST FED, SO IT'S DECKER AND ANY OF THE OTHER NON NUCLEAR FACILITIES AND AUSTIN ENERGY PUTS ASIDE, UM, $8 MILLION A YEAR, UH, TO HELP BUILD THAT, UH, DECOMMISSIONING COST RESERVE.

SO JUST TO FOLLOW UP, ANSWER ON THAT ONE, UM, WITH THAT, THAT CONCLUDES OUR HISTORY, THAT CONCLUDES OUR 2022, UM, BUDGET PRESENTATION, UH, HAPPY TO FOLLOW UP WITH THE, UH, ANY QUESTIONS YOU MAY HAVE AND, UM, GET BACK WITH YOU.

THANK YOU VERY MUCH.

THANK YOU.

UM, SO I THINK, UH, WE HAVE, UH, MR. DOMBROWSKI, I THINK, UH, WOULD LIKE TO COMMENT ON THE BUDGET AND THEN, UM, CYRUS, I THINK, UH, I HAVE A LITTLE MORE CLARIFICATION ON THE ITEM NUMBER FOUR, UM, AND, AND MAYBE EXPLAINS WHY WE WERE A LITTLE CONFUSED ABOUT THAT ITEM.

SO, UM, I THINK THE <