Aug 19, 2021 Electric Utility Commission

UM, NEXT

[1. APPROVAL OF MINUTES – Approve minutes of the July 15, 2021 special-called meeting]

IS APPROVAL OF MINUTES.

I WOULD, I WOULD MOVE APPROVAL THAT THE CYRUS READ.

DO WE HAVE A SECOND? I'LL SECOND.

WHAT ABOUT TO, CAN WE VOTE ON THIS? I'LL SAY HI.

HI.

I THINK WE HEAR KAREN OR WE SEE KAREN HOW THAT'S GREAT.

OKAY, WE GOT THAT OUT OF THE WAY.

HEY, JEFF, I THINK YOU HAVE AN INTRODUCTION FOR A NEW VP.

WOULD YOU LIKE TO INTRODUCE A PERSON? I DO.

VICE CHAIR, TUTTLE.

I'LL ALSO JUST FOR THE RECORD.

WANT TO MAKE SURE THAT, UH, EVERYBODY KNOWS THAT WE HAVE COMMISSIONER TROSTLE FERTRELL CHAPMAN HADDEN, FUNKHOUSER, AND REED JOINING VICE-CHAIR TUTTLE, WHO IS, UH, OFFICIATING TONIGHT.

AND, AND LET ME JUST SEE IF I CAN GET THAT STAFF MOVED OVER ONE MOMENT.

I'M GOING TO MOVE OVER OUR DEPUTY GENERAL MANAGER, CARRIE OVERTON, AND HE WILL INTRODUCE OUR NEW VICE PRESIDENT.

JEFF, CAN YOU HEAR ME? YES, SIR.

FACT THAT, UH, YOU KNOW, MY ROLE IS JUST TO CONTINUE IN THAT LEGACY.

FOR SOME REASON, I JUST DID A TEST ON MY CAMERA, BUT IT LOOKS LIKE IT'S JUST A GREEN SPOT.

SO, UM, I'LL TRY TO WORK ON THAT, BUT I'M GONNA TURN IT OFF.

THIS IS CARRIE OVERTON.

UH, UH, THANK YOU CHAIR FOR GIVING US THIS OPPORTUNITY.

UH, YOU MAY RECALL, UM, JUST IN THE SPRING, UM, WE HAD THE ANNOUNCEMENT OF DEBBIE KIMBERLY, WHO ANNOUNCED HER RETIREMENT, UH, FROM THE ORGANIZATION AND SHE WAS THE VICE PRESIDENT, UH, UH, CUSTOMER ENERGY SOLUTIONS, UH, CES.

WE NOW HAVE SINCE, UM, OFFERED THAT JOB TO, UH, THROUGH AN INTERVIEW PROCESS TO RICHARD GENESEE.

AND I WANTED TO GIVE AN OPPORTUNITY TO ALLOW RICHARD TO SHARE YOU A LITTLE BIT ABOUT HIS BACKGROUND.

AND IN THE INTERIM, WE HAD AN ACTING VICE PRESIDENT, ELAINE BELL SILKA WHO WAS, UM, HELPING MANAGE THAT TEAM FOR QUITE THIS TIME.

SHE'S NOT ON THIS MEETING, BUT I WANT TO THANK HER FOR HER CONTRIBUTION AND MAKING SURE THAT EVERYTHING CONTINUED TO MOVE FORWARD.

AND IT WAS A GREAT LEADERSHIP TEAM, UM, UM, UNDERNEATH ELAINE THAT, UM, MADE SURE THAT EVERYTHING WENT FORWARD.

SO, RICHARD, UM, I DON'T KNOW IF THEY MOVE YOU OVER.

UH, DO YOU MIND SHARING A LITTLE BIT OF YOUR BACKGROUND WITH THE COMMISSIONERS? UH, NOT AT ALL.

THANK YOU, CARRIE.

I'M RICHARD GENESEE, AND, UH, I HAVE A LONG, UH, HISTORY WITH UTILITIES AND ENERGY EFFICIENCY.

UH, I HAVE A CAREER BEFORE UTILITIES, WHICH IS CONSUMER PACKAGED GOODS, BUT FOR THE PURPOSE OF THIS DISCUSSION, I'LL JUST FOCUS ON, UH, BRIEFLY HITTING THE HIGHLIGHTS OF MY UTILITY EXPERIENCE, STARTING AT SOUTHERN CALIFORNIA EDISON, WHERE I WAS THE RESIDENTIAL, UH, PORTFOLIO MANAGER AND HAD ABOUT 30 RESIDENTIAL ENERGY EFFICIENCY PROGRAMS WERE REPORTING INTO ME.

UM, I MOVED ON, I DID THE ROLE AT SCE FOR ABOUT FIVE YEARS, AND THEN I MOVED ON TO A ROLE AT BONNEVILLE POWER ADMINISTRATION AND WENT FROM THE RETAIL MARKET TO THE WHOLESALE MARKET.

UM, YOU KNOW, BONNEVILLE IS THE WHOLESALE, UH, PROVIDER IN THE PACIFIC NORTHWEST WITH ABOUT 114 PUBLIC, UH, UH, CUSTOMERS IN Q2, INCLUDING MUNICIPAL UTILITIES.

AND, UH, I WAS THE VICE PRESIDENT OF ENERGY EFFICIENCY AT BONNEVILLE FOR ALSO ABOUT FIVE YEARS.

UM, AND THEN I WENT ON TO A POSITION AT CLEAR RESULT.

AND FOR THOSE OF YOU WHO KNOW CLEARESULT IS NORTH AMERICA'S LARGEST ENERGY EFFICIENCY PROVIDER, I, IN TERMS OF NUMBER OF, UH, CUSTOMERS, UM, AND IN THAT ROLE AS THE SENIOR VICE PRESIDENT OF OPERATIONS, I WAS RESPONSIBLE FOR 22 US STATES AND FOUR CANADIAN PROVINCES.

UM, BUT I THINK, YOU KNOW, BESIDES THE EXPERIENCE, THEY'RE REALLY THE ONLY TWO POINTS I'D LIKE TO MAKE TONIGHT.

UH, JUST AS I INTRODUCE TO GET INTRODUCED TO YOU IS, UH, IT IS SUCH AN AMAZING PLEASURE AND HONOR TO BE PART OF THE AUSTIN ENERGY FAMILY AND TEAM.

AND I RECOGNIZE THE INCREDIBLE LEGACY OF THIS TEAM IN TERMS OF THE MANY AWARDS AND ACCOMPLISHMENTS THAT, UH, THIS TEAM HAS AS HAS ACCOMPLISHED OVER THE YEARS.

AND THE

[00:05:01]

MY ROLE IS TO HELP SUPPORT THE TEAM AND CONTINUE TO MAKE IT, UM, AS WORLD-CLASS AND CUTTING EDGE LEADING EDGE AS IT'S BEEN, UH, FOR A NUMBER OF DECADES.

AND THE SECOND POINT IS IN TERMS OF HOW YOU'LL SEE ME OPERATE, I AM, UM, UH, ABSOLUTELY FIRMLY COMMITTED TO THE LOST ART OF LISTENING.

AND I THINK THAT YOU WILL FIND THAT, UM, I'M AN ACTIVE LISTENER.

I THINK THAT, UM, YOU KNOW, A LOT OF PEOPLE DON'T REALLY FOCUS ON THAT.

UM, AND, UH, I T I DO SO, UH, AS I SEEK TO, UM, MEET ALL OF YOU, UH, NOT VIRTUALLY, BUT HOPEFULLY SOON, UH, FACE-TO-FACE THERE AS, AS THE SITUATION AFFORDS ITSELF.

UM, I LOOK FORWARD TO LISTENING TO YOU AND, UH, AND BUILDING EFFECTIVE, UH, COLLABORATION AND RELATIONSHIP WITH YOU.

WELCOME TO AUSTIN ENERGY.

WELCOME TO AUSTIN.

YEAH, ACTUALLY, RICHARD, COULD YOU, COULD YOU GIVE AN OVERVIEW OF WHICH DEPARTMENTS LIKE KURT STOCK GOAL AND CARL POPPINS EBY GROUP ADVANCED TECHNICAL GROUP IT'S, IT'S ALL OF IT'S ALL OF CUSTOMER EXPERIENCE SOLUTIONS OR A CUSTOMER ENERGY SOLUTIONS.

SO IT IS THE FOUR GROUPS, UH, THE ENERGY SERVICES, THE EES GROUP, THE, UM, KURT KURT'S GROUP, DANIELLE'S GROUP TIM'S GROUP.

UH, SO IT'S, IT'S, UH, REALLY THE FOUR AREAS OF CS THAT, UM, YOU KNOW, UM, DEBBIE, UH, WAS THE PREDECESSOR, UM, FOR, YOU KNOW, I THINK ABOUT A 10 YEAR PERIOD AND, UH, ELIZA, CARRIE, UH, EXPRESSED ELAINE'S BEEN SERVING IN THE INTERIM ROLES SINCE DEBBIE LEFT IN, IN MAY.

SO IT'S, UH, THOSE FOUR DIRECT REPORTS.

MS. CARRIE, FORTY-ONE.

I JUST WANT TO SAY WELCOME ABOARD.

YOU'VE GOT BIG SHOES TO FILL.

DEBBIE DID A GREAT JOB FOR US, AND WE'RE LOOKING FORWARD TO IT.

GREAT.

THANK YOU VERY MUCH.

I APPRECIATE THAT.

IT LOOKS LIKE WE'VE LOST A DAY, AT LEAST ACCORDING TO MINE SHOWS UP YOUR DAY.

ARE YOU STILL THERE? OH, IT LOOKS LIKE, YEAH, I CAN SEE IT.

IT LOOKS LIKE DAVE IS, HAS LEFT, LEFT THE CONFERENCE.

WELL WITH THIS MOMENT IN BETWEEN, UM, MRS. KAREN HADN'T AND I ALSO WANTED TO SAY WELCOME.

WE'RE GLAD YOU'RE HERE.

AND, UM, UH, THANKS TO DEBBIE KIMBERLY FOR HER WORK DAY IS A BAD TAKE OVER.

I THOUGHT IT WAS YOUR, WHEN YOU WERE TALKING WERE CUT OFF AND IT WAS MY CONNECTION, I THINK I'M SORRY.

AGAIN, RICHARD.

WELCOME.

WE'RE GLAD TO HAVE YOU.

THE NEW BUSINESS CONSENT.

UM, JEFF, I MISSED A LITTLE BIT, THERE IS A TIME TO GO TO

[NEW BUSINESS – CONSENT]

PLEASE.

UH, YOU CAN MAKE A CALL TO SEE IF ANYBODY HAS ANY QUESTIONS ON ANY OF THE ITEMS OTHERWISE WE CAN APPROVE ON CONSENT.

SO DO WE HAVE ANY QUESTIONS ON TWO THROUGH SEVEN? NOPE.

SO SOMEONE LIKE MAKE A MOTION TO APPROVE TWO THROUGH SEVEN, SO, OKAY.

AND WE HAVE A SECOND.

ALL WHO APPROVE SAY, AYE.

I THINK WE HAVE UNANIMOUS THIRD JEFF TWO THROUGH SEVEN.

BEGIN WITH OUR BRIEFINGS, IF THAT'S ALL RIGHT.

THANK YOU SO MUCH.

AND NOW WE'LL

[8. Utility Bill Relief Funding and Standard Operations Briefing]

AND, UH, FIRST UP WILL BE AGAIN, VICE, UH, GENERAL DEPUTY GENERAL MANAGER, CARRIE OVERTON.

OKAY, JEFF, UM, ALL THAT TIME I'D BEEN WORKING TO GET THIS VIDEO GOING.

I'M NOT SURE WHAT HAPPENED, BUT I WILL, UH, KEEP WORKING ON IT.

UM, NO WORRIES.

WE'LL PULL UP THE PRESENTATION FOR YOU NOW, SIR.

I'M PLEASED TO SHARE WITH YOU THE PROGRESS THAT WE'VE MADE WITH OUR CUSTOMER UTILITY BILL RELIEF FUNDING AND OUR ONGOING EFFORTS TO SUPPORT OUR CUSTOMERS AS THE UTILITY RESUMED, THE STANDARDS, ACCOUNTS, RECEIVABLES MANAGEMENT ACTIVITIES.

AGAIN, UH, GOOD AFTERNOON.

COMMISSIONERS I'M CURI OAKTON, THE CHIEF CUSTOMER OFFICER WITH AUSTIN ENERGY.

[00:10:01]

UH, APPROXIMATELY 16 MONTHS AGO, THE CITY SUSPENDED UTILITY DISCONNECTIONS AND THE CHARGING OF LATE FEES ON DELINQUENT ACCOUNTS.

AS A RESULT OF THE UNPRECEDENTED PANDEMIC, OUR COMMUNITY WAS FACING, UH, IN APRIL, 2020 CITY COUNCIL AUTHORIZED $10 MILLION TO BE USED FOR THE UTILITY BILL RELIEF FUNDING FOR CUSTOMERS EXPERIENCING HARDSHIPS DURING THE PANDEMIC.

UM, AND AS A RESULT OF THAT, AUSTIN ENERGY LAUNCHED A COMPREHENSIVE OUTREACH CAMPAIGN TO OUR CUSTOMERS TO INCLUDE OPENING THE AUSTIN BILL HELP WEBSITE.

WE CREATED A MULTI-TIERED COMMUNICATION AND MARKETING STRATEGY IN ENGLISH AND IN SPANISH.

UM, AS WELL AS WE ENGAGED OUR 56 NON-PROFIT AND FAITH-BASED COMMUNITY PARTNERS, UH, TO HELP SERVE OUR CUSTOMERS THROUGH OUR EXPANDED, UM, PLUS ONE PROGRAM DURING THIS EXTREMELY DIFFICULT TIME, WE WANTED TO MAKE SURE THAT OUR CUSTOMERS WERE INFORMED ABOUT THE SPECIAL OPPORTUNITIES AVAILABLE FOR THEIR UTILITY ACCOUNTS AND AS SUCH, UM, WE HAD OUTREACH EFFORTS THAT INCLUDED DIRECT LETTERS, OUTBOUND CALLS, COURTESY DOOR HANGERS, SOCIAL MEDIA, AND VIDEO INFOGRAPHICS, OUR GOAL THEN, AND IT HAS REMAINED THE SAME NOW, AND THAT WAS FOCUSED ON RELIEF, FUNDING, AWARENESS, AND ENCOURAGEMENT FOR CUSTOMERS TO CONTACT US, TO HELP BRING THEIR UTILITY ACCOUNT BALANCES.

CURRENT THE ORIGINAL PLAN TO RESUME COLLECTION ACTIVITIES IN SEPTEMBER OF 2020, UH, WAS NOT ONLY EXTENDED MULTIPLE TIMES IN RECOGNITION OF THE PANDEMIC.

UH, BUT WE ALSO ADDED AN ADDITIONAL $10 MILLION TO THE RELIEF FUND.

UM, UH, DURING THAT TIME PERIOD.

UH, I SEE SOME HAVE LOST AUDIO.

I'M GOING TO KEEP GOING A CHAIR.

CAN YOU STILL HEAR ME? OKAY.

I'M GOING TO KEEP GOING.

UH, BY THE FALL OF 2020, A UTILITY ADDED A TOTAL OF $20 MILLION TOTAL TO THE BILL RELIEF EFFORT.

THIS WAS A COMBINED EFFORT WITH AUSTIN WATER AND AUSTIN ENERGY.

AND AS PART OF THAT SUCCESS, UM, RIGHT NOW OVER $16 MILLION HAVE BEEN DISTRIBUTED TO OUR CUSTOMERS WHO ARE IN NEED.

IF YOU LOOK AT THE DOLLAR FUNDED, UH, BLUE LINE ON THE CHART, IT SHOWS THAT ON AN AVERAGE ABOUT ONE TO $1.3 MILLION OF RELIEF FUNDING HAS BEEN DISTRIBUTED TO OUR CUSTOMERS ON A MONTHLY BASIS AND EVEN BETTER.

THE GOOD NEWS IS WE STILL HAVE $4 MILLION REMAINING IN THE RELIEF FUND.

AND WE ANTICIPATE THAT THOSE FUNDS WILL TAKE US THROUGH THE END OF THIS CALENDAR YEAR.

THIS, UM, BUILD JOURNEY CHART SHOWS THE COVID IMPACT ON A NORMAL ACCOUNTS, RECEIVABLES PROCESS, AND OUR NORMAL PROCESS.

TYPICALLY 90% OF OUR CUSTOMERS PAY THEIR BILL ON TIME OR NEAR THE BILL DUE DATE.

THAT PERCENTAGE OF CUSTOMERS CONSIDERED CURRENT AT THIS TIME CURRENTLY HAS DROPPED TO 75%.

AND LIKEWISE TWENTY-FIVE PERCENT OF OUR CUSTOMERS ARE BEHIND ON PAYMENTS.

UM, AND THEY RECEIVE NOTICES.

AND THIS GROUP, USUALLY IN OUR NORMAL CYCLE REPRESENTS LESS THAN 10% OF OUR CUSTOMERS.

JUST LAST MONTH, WE DID SEE AN UPTICK IN OUR PAYMENT ARRANGEMENT STATUS, WHICH IS LARGELY DUE TO OUR RECENT COMMUNICATIONS ABOUT THE COLLECTIONS PROCESS, UM, BEING STARTED AND THAT ALIGNS WITH OUR PAST EXPERIENCES.

AND THAT WAS VERY ENCOURAGING TO START SEEING THE RESPONSES TO SET UP THOSE PAYMENT ARRANGEMENTS.

UM, AND I WILL NOTE THAT THE, THE EXTENSION OF THE PAYMENT ARRANGEMENT WE NORMALLY WOULD HAVE, UH, FOR RESIDENTIAL CUSTOMERS, THEY WOULD HAVE UP TO 24 MONTHS.

WE'VE EXTENDED THAT TO 36 MONTHS, THREE YEARS WHERE THAT DEBT TO BE PAID BACK, UH, DURING THIS PERIOD.

AND WE MOVED OUR COMMERCIAL ACCOUNTS FROM 12 MONTHS TO 24 MONTHS, UH, DURING THIS TIME PERIOD.

UH, NEXT SLIDE.

UH, OBVIOUSLY THAT DEBT HAS SINCE DOUBLED TO $47 MILLION.

THANK YOU, JEFF, FOR MOVING ME ALONG.

UH, NO, NO, I'M SORRY.

GO BACK TO THE, TO THE MOUNTAIN CLIMBER CHART.

I WANT TO PROVIDE JUST A LITTLE BIT OF A PERSPECTIVE HERE ON OUR TYPICAL ACCOUNTS RECEIVABLES GREATER THAN 30 DAYS.

UH, THAT LINE IS TARGETED TO BE BELOW $20 MILLION.

AND AT BEST WE LIKE TO SEE THAT ENTIRE CURVE INSIDE THAT GRAY BAND ACROSS THE FISCAL YEAR.

[00:15:01]

HOWEVER, THIS WAS ANTICIPATED AND EXPECTED AS A RESULT OF THE RELIEF EFFORTS THAT WE HAD, BECAUSE WE RECOGNIZE NOT ONLY WHAT COUNCIL HAD MOVED TO, UH, SUPPORT, BUT ALSO AS A UTILITY, WE UNDERSTAND NEED THAT THE COMMUNITY WAS IN.

AND IF YOU WANT TO DO A COMPARISON IN 2019, THAT CAPTURES THE TYPICAL EBBS AND FLOW THAT WE LIKE TO SEE.

UM, BUT WE ALSO BELIEVE THAT OUR CURRENT STANDARD PROCESSES WILL GET US BACK TO THOSE LEVELS.

UH, IT COULD TAKE UP TO TWO TO THREE YEARS BECAUSE OF THE EXTENDED PAYMENT ARRANGEMENTS, BUT AT THIS MOMENT WE FEEL THAT THIS IS THE RIGHT TIME FOR US TO KEEP MOVING FORWARD WITH THE FLEXIBILITY THAT WE HAVE, AND WE'RE GOING TO CONTINUE TO SUPPORT, SUPPORT OUR CUSTOMERS THROUGHOUT THIS PROCESS.

AND JUST AS A MATTER OF COMPARISON AND THE PREVIOUS SLIDE, I JUST SHOWED YOU THAT DIFFERENCE OF 2019 TO 2021 AND THE TOTAL PAST DEBT.

I JUST WANTED TO ZOOM IN JUST A LITTLE BIT MORE IN DETAIL TO LOOK AT THE AVERAGE PAST DUE BALANCES OR OUR CUSTOMERS, ALTHOUGH THAT HAS DOUBLED, WHAT WE HAVE SEEN IS THAT NUMBER IN THE JUNE, 2021 AVERAGE BALANCE FOR CUSTOMERS, BOTH RESIDENTIAL AND CUSTOMERS WOULD BE SUBSTANTIALLY HIGHER, HAD THE RELIEF MONEY NOT BEEN APPLIED AT THIS TIME.

SO THOSE NUMBERS INCLUDE THE RELIEF FUNDING THAT BOUGHT THOSE COUNTERBALANCES DOWN.

UM, AND IF THERE IS A NOTE THERE THAT LEAVES US SOME WORK, UH, DESPITE OUR OUTREACH EFFORTS, UM, THAT HAS CONTINUED THROUGHOUT THIS ENTIRE TIME, WE DO HAVE A SMALL POCKET OF CUSTOMERS WHO HAVE, UH, NOT, NOT HAVE PAST DUE BALANCES.

THEY HAVE NOT MADE PAYMENTS ON IT AND NOR HAVE THEY MADE CONTACT WITH US.

AND SO WE'RE DOUBLING AND TRIPLING OUR EFFORTS TO JUST SIMPLY MAKE THE CONTACT WITH THOSE CUSTOMERS.

AND WE BELIEVE THAT WE WILL EVENTUALLY BE SUCCESSFUL.

AND YOU'RE ABSOLUTELY CORRECT.

UM, AND AGAIN, THE PROCESS OF STARTING BACK AND PARTICULARLY DURING THE SUMMER MONTH, THE PROCESS IS NOT FOR US TO JUST FOCUS ON SERVICE DISCONNECTS.

IN FACT, IT'S THE OPPOSITE.

OUR GOAL OF THE WAY WE'RE WORKING THIS PROGRAM WITH THE FLEXIBILITY IS TO DRIVE CUSTOMERS, TO CONTACT US, TO MAKE SURE THAT THEY ARE AWARE OF ALL OF THE OPTIONS THAT THEY HAVE AVAILABLE TO THEM, FOR THEM TO SEEK AND RECEIVE THAT RELIEF FUNDING THAT'S STILL AVAILABLE AND ALSO GET ON PAYMENT ARRANGEMENTS.

AND SO WE'LL MANAGE THIS PROCESS THROUGH THE REST OF THE YEAR.

UM, AND AS WE SAID, WE SENT, UM, YOU KNOW, SPECIAL LETTERS TO, UH, THOSE CUSTOMERS THAT WERE AT THE MOST, UM, OR HIGH RISK, UH, FOR DISCONNECTIONS, UH, THOSE THAT HAD NOT MADE PAYMENTS FOR 90 OR EVEN, UM, UM, YOU KNOW, SIX MONTHS.

AND SO WE HAD THE COURTESY DOOR HANGERS.

UM, ALSO WE HAD A MEDIA RELEASE THAT WENT OUT IN JULY AND THEN STORIES RAN, UH, THROUGHOUT THAT ENTIRE PERIOD, UH, IN MAJOR OUTLETS.

AND SO, UM, IN JULY 16TH WAS THE ACTUAL DAY THAT WE STARTED THE COLLECTIONS PROCESS, BUT ALSO IN THE NORMAL PROCESS, WE HAVE A WEATHER MORATORIUM.

SO THAT DOES NOT MEAN BECAUSE WE'VE STARTED.

UM, BUT EVERY DAY THE CUSTOMERS WILL BE DISCONNECTED.

IN FACT, DURING THIS TIME PERIOD, THERE'S ONLY BEEN TWO DAYS OF ACTUAL DISCONNECTS AND WE'VE KEPT THEM AT A VERY MINIMUM.

AND WHAT WE'VE SEEN IS THOSE CUSTOMERS HAVE SINCE CONTACTED US AND EITHER PUT UP A PAYMENT ARRANGEMENT OR THEY HAD SOME DISCUSSION WITH US.

AND SO WE SAW SOME POSITIVE RESPONSES FROM THAT, AND PARTICULARLY WITH SOME OF OUR COMMERCIAL ACCOUNTS AS WELL.

NEXT SLIDE, UH, AGAIN, TO SUMMARIZE, UH, WHAT HAS HAPPENED SO FAR, WE'VE HAD THIS CONVERSATION WITH COUNSEL THROUGHOUT THE ENTIRE 16 MONTHS.

WE KEPT, UH, THE COUNCIL MEMBERS INFORMED THROUGH OUR BRIEFINGS IN THE COMMUNITY.

WE HAD AN EXTENSIVE OUTREACH AND WE'RE GOING TO CONTINUE THAT THROUGH THE END OF THE YEAR, WE'D STILL HAVE UTILITY BUREAU, REALLY FUNDING AVAILABLE, AND WE HAVE MARKETING MATERIALS THAT ARE OUT THERE FOR CUSTOMERS TO GO TO AUSTIN, BILL HELP.

UM, AND THEY ALSO CAN CALL OUR CALL CENTER WHERE WE CAN PROVIDE ASSISTANCE AS WELL.

UM, WE HAVEN'T, AS I MENTIONED EARLIER, THE FLEXIBLE PAYMENT ARRANGEMENTS, AND WE ALSO, DURING THIS TIME PERIOD, WE REALLY WANT THEM TO ACT AND, UH, GIVE US THIS CONTEXT SO THAT WE CAN CONTINUE TO KEEP THEM UNDER THE COVERAGE OF THE WAIT FEE, UH, THE LATE FEE WAIVERS, UH, WITH THAT, UM, I WILL PAUSE CHEER AND PROBABLY RUN DOWN TO JACKIE'S OFFICE OR SOMETHING AND GET INTO THE BACKGROUND SO THAT EVERYBODY CAN, UH, MAKE A CONNECTION WITH THE FACE.

BUT I HAVE NO IDEA WHILE MY VIDEO IS NOT SHOWING THAT'S OKAY.

DON'T HAVE TO RUN.

ARE THERE ANY QUESTIONS?

[00:20:02]

YEP.

UH, MR. OVERTON, CAN YOU HEAR ME OKAY.

I CAN'T, YES, SIR.

GOOD CONNECTING WITH YOU AGAIN, IT'S BEEN AWHILE, A COUPLE OF QUESTIONS.

I'M THIS IS EXACTLY THE TYPE OF INFORMATION THAT, THAT I WAS ASKING FOR THE COMPARATIVE TO 2019.

AND, AND, UH, THANK YOU FOR, THANK YOU FOR THE PRESENTATION, MY COUPLE OF QUESTIONS, UH, HOW THE CITY OF BOSTON'S UTILITY BILL RELIEF PROGRAM, I THINK YOU SAID HAD, UH, ENOUGH MONEY TO GET THROUGH THE END OF THE CALENDAR YEAR IN ALL LIKELIHOOD.

UH, HOW DOES THAT, HOWEVER, THE STATE ALSO HAS THEIR, UH, PROGRAM FOR RENT RELIEF AND WHICH INCLUDES UTILITY ASSISTANCE.

HOW ARE THE TWO PROGRAMS COMBINED? ARE WE ABLE TO OUR CUSTOMERS ABLE TO APPLY FOR THE, UH, FUNDING THROUGH THE STATE PROGRAM AND THEREFORE MAKE AUSTIN ENERGY DOLLARS GO EVEN FURTHER? OH, ABSOLUTELY.

YOU ACTUALLY DESCRIBED A RIGHT THERE AT THE END.

WE ARE, UH, WORKING WITH THE HOUSING AUTHORITIES AND THE STATE PROGRAM CUSTOMERS GET RECEIVED BOTH.

IN FACT, THERE'S A REFERRAL.

ONCE THEY GO THROUGH THAT PROGRAM, CUSTOMERS ARE BEING HANDED INFORMATION TO CONTACT AUSTIN ENERGY.

UM, AND WE HAVE A TEAM THAT'S ALSO PROVIDING IT IS, UM, HAKA, UM, WHO WE ARE, I'M SORRY, NOT THE STATE.

IT WAS, IT WAS HAKA, UH, MS. MISPRONOUNCED THAT, AND WE ARE COORDINATING WITH THEM TO MAKE SURE THAT THE CUSTOMERS ARE RECEIVING THOSE DOLLARS.

UM, THEY LIKED THAT PROGRAM BECAUSE THEY CAN APPLY ALL OF THEIR DOLLARS ASSOCIATED WITH HOUSING AND THEN A HUNDRED PERCENT OF THE DOLLARS THAT WE ARE PROVIDING CAN GO TO ELECTRICAL SERVICES.

SO THERE IS A CONNECTION THERE.

EXCELLENT, EXCELLENT.

UH, MY NEXT QUESTION IS, UH, UH, I, I REFERRED TO THE PROGRAM AND, UH, UH, BUT IT'S THE PROGRAM THAT, THAT WE DEVELOPED WITH YOU YEARS AGO IS THE ARREARAGE MANAGEMENT PROGRAM, UH, WHICH HELPS PEOPLE, UH, IT LOW, PARTICULARLY LOW INCOME CONSUMERS, UH, WHO DEVELOP A, UH, PAVEMENT GET BACK INTO A PAYMENT PLAN.

IS THAT PROGRAM STILL IN EXISTENCE? AND HOW IS THAT WORKING? IT IS AN EXISTENCE, UM, UH, COMMISSIONER, THE, THE RICH, UH, MANAGEMENT PROGRAM.

WE REFER TO IT AS AMP, UH, YOU KNOW, ANY UTILITY.

WE HAVE AN ACRONYM FOR EVERY, EVERY, UM, PROGRAM, UM, IT'S WORKING WELL IN ONE REGARD.

AND THAT IS, UM, THAT PROGRAM WAS DESIGNED FOR CUSTOMERS WHO HAD REALLY HIGH DEBT FOR US TO GO INTO A MATCHING PROGRAM WITH THEM TO HELP THEM REDUCE THEIR BILL.

NOW, IT IS THAT PROGRAM WAS DESIGNED THAT AS THEY MADE A PAYMENT, IT WAS 50% OF THEIR CURRENT BILL.

UM, AND THEN THEY ALSO HAD, UM, THESE OTHER FLEXIBILITIES IN TERMS OF, UH, PAYMENT ARRANGEMENTS IN TIMES IN WHICH THEY CAN, IF THEY, YOU KNOW, RAN INTO A HARDSHIP, UH, THEY CAN STILL RENEW.

WHAT WE'VE FOUND IS IN THE FIRST TWO YEARS, IT WAS FOUR YEARS AGO WHEN WE LAUNCHED THAT, WORKING WITH YOU AND OTHERS IN THE COMMUNITY, WE LAUNCHED THAT FOR TWO YEARS AND WE'D HAD SEVERAL CUSTOMERS GO THROUGH AND COMPLETED THAT PROGRAM SUCCESSFULLY.

THEY RETURN TO HIS CURRENT BALANCE, AND THEY'VE BEEN VERY HAPPY WITH THE PROGRAM, WHAT WE FOUND JUST 16 MONTHS AGO, OR REALLY FOR THE LAST TWO YEARS WHEN THE EMERGENCY FUNDING WAS AVAILABLE, MORE CUSTOMERS RIGHT NOW CHOSE TO RECEIVE THE EMERGENCY MONEY, WHICH DIDN'T REQUIRE A MATCHING CONTRIBUTION ON THEIR SIDE IF THEY WERE ELIGIBLE FOR IT.

SO THE PROGRAM HAS SINCE SLOWED DOWN OVER THE LAST 16 MONTHS, BUT WE SUSPECT THAT WHEN THE RELIEF MONEY IS FINISHED, UM, OTHER CUSTOMERS WILL STILL BE DIRECTED TO AMP AND, YOU KNOW, AND WE'LL STILL WORK THAT SO SUCCESSFUL.

AND, UH, AND, AND THE MATERIAL YOU, YOU SHOW THE, UH, THE RESIDENTIAL, UH, TYPICAL, UH, PAST DUE BALANCE, UH, AS PRETTY HUNDRED $13, UH, ALL OF WHICH IS WHAT ARE THE OUTLIERS ON THERE, OBVIOUS LABOR, BUT IT COULD BE ONE TOO, BUT, BUT DO YOU HAVE PEOPLE THAT HAVE, UH, BALANCES OVER A THOUSAND DOLLARS? UH, WE DO THAT.

AND THE NUMBER THAT YOU RECITING IS AN AVERAGE.

SO, YOU KNOW, YOU HAVE, UH, ON BOTH ENDS, YOU HAVE SO MUCH LOWER AND IN MUCH HIGHER, WE DO HAVE SOME, UH, ACCOUNTS THAT WE'RE WORKING VERY CLOSELY THAT HAVE SOME BALANCES

[00:25:01]

OVER $2,000.

UM, I DON'T KNOW THE NUMBER OFF THE TOP OF MY HEAD, HOW MANY, UH, THAT THAT IS.

UM, WE THINK IT'S A SMALL PORTION.

UM, BUT ALSO WHAT WE FOUND IS THAT, UH, WHEN THEY CONTACT US, UM, THEY ARE AMAZED AND DELIGHTED THAT WE'RE GOING TO GIVE THEM, UH, THREE YEARS TO PAY THAT BACK.

AND IN FACT, THEY'RE ALSO WHEN THEY'RE, UM, HAD ANY OF THIS COVERT PERIOD THEY'RE RECEIVING MONEY TO HELP REDUCE THAT, THAT DEBT AS WELL.

SO WE THINK BOTH, BOTH PROGRAMS ARE WORKING WELL, BUT WE DO HAVE SOME CUSTOMERS WITH 2000 OVER $2,000.

AND FINALLY THEY, A 15% REDUCTION GOING UP FROM 10 TO 15%.

DID THAT HAVE A, UH, POSITIVE IMPACT IN REDUCING, UH, VOLUNTEERISM, KEEPING PEOPLE CONNECTED? UH, IT ABSOLUTELY DID.

AND, AND AGAIN, I WAS, UM, UH, GIVEN THE NUMBER THAT WE HAVE ABOUT ABOUT 1300 CUSTOMERS THAT ARE BALANCES OVER 2000, BUT, UM, WE, WE BELIEVE BETWEEN NOW AND DECEMBER BY THE END OF THE YEAR, UH, WITH THEY'RE CONSTANTLY HAVING CONTACT WITH US.

WE THINK WE WILL WORK THAT DOWN.

OTHER QUESTIONS, CAN YOU HEAR ME? YEAH.

MA'AM.

I CAN JUST A THOUGHT AND MAYBE, UM, I'M NOT SURE IF ANY OF THIS MAKES SENSE OR NOT IN THIS CASE, BUT HAS THERE EVER BEEN A PROGRAM OR A WAY FOR SOMEBODY WHO, UH, A MAJOR DONOR TYPE OF SCENARIO FOR SOMEONE WHO WANTS TO STEP IN AND HELP OUT AN INDIVIDUAL BY PAYING OFF THEIR BALANCE? UM, IS THAT, DOES THAT HAPPEN? CAN THAT BE DONE? YEAH.

YOU KNOW, YES, IT CAN BE DONE.

UH, AND WE'VE SEEN, UM, WITH THE INDIVIDUALS IN THIS CITY OF AUSTIN, UH, WE'RE ALWAYS, WELL, I DON'T WANT TO SAY AMAZED, BUT WE'VE ALWAYS SEEN GREAT SUPPORT.

WELL, NUMBER ONE, CUSTOMERS CAN CONTRIBUTE ON AN ONGOING BASIS TO THE PLUS ONE PROGRAM.

AND SO THERE'S AN OPPORTUNITY AT, UM, ON YOUR BILL.

AND WE DO DO MARKETING FOR THAT.

CUSTOMERS CAN SELECT MAKE A CONTRIBUTION.

IN THAT CASE, IT WOULD NOT BE DIRECT, UH, THAT THEY WOULD KNOW THE NAME OF THE PERSON THAT IT'S GOING WITH GOING TO, BUT THEY CAN DO THAT AT ALL TIMES WHEN WE MARKETED THAT.

AND WE ALSO HAVE, UM, CUSTOMER CUSTOMERS IN AUSTIN AND CITIZENS WHO ALWAYS REACH OUT TO HELP WHEN IT'S DIRECT.

UM, WE, WE HAVE THOSE CASES.

AND WHAT HAPPENS THOUGH? UM, IT TAKES A LITTLE BIT OF INSIGHT, UM, CONNECTIONS DIRECTLY WITH, UM, OUR DEPARTMENT, BECAUSE WHAT WE CAN'T DO IS GIVEN INDIVIDUAL THE ACCOUNT NUMBER IN SPECIFICS ON THE ACCOUNT, BUT THEY CAN COME IN TO OUR WALK-IN CENTER AND WE HAVE OTHER PROVISIONS IF THEY WANTED TO APPLY TO A SPECIFIC CUSTOMER'S ACCOUNT, UM, WE HAVE PROCESSES THAT WE CAN, UM, YOU KNOW, GET THAT APPLIED PROPERLY, BUT WE WON'T BE ABLE TO GIVE THAT CONTRIBUTOR, UM, ACCESS UNLESS THE ACCOUNT HOLDER GIVES US PERMISSION.

UM, PRIVACY INFORMATION.

NUMBER NINE, A THIRD QUARTER FINANCIAL BRIEFING.

ANY OTHER QUESTIONS, JEFF? WELL, I GUESS IF WE WANT TO MOVE TO

[9. 3rd Quarter Financial Briefing]

VERY GOOD.

WE'LL WORK TO, UH, MOVE OVER.

STEPHANIE.

KUDELKA OUR FINANCE DIRECTOR.

ONE MOMENT.

I'M SORRY.

WHAT I MEANT IS WE WILL UNMUTE HER.

STEPHANIE, YOU SHOULD BE ABLE TO, UH, SPEAK.

NOW.

I KNOW YOU WERE HAVING AUDIO TROUBLES AND WE'LL PULL UP THE PRESENTATION FOR YOU.

APOLOGIZE IF MY CAMERA IS NOT, UH, THINK THAT WITH MY VOICE.

HI, GOOD EVENING.

CAN EVERYONE HEAR ME? I HAVE BEEN HAVING SOME ISSUES.

UM, I'M STEPHANIE KUDELKA, AS JEFF MENTIONED, I AM THE DIRECTOR OF ACCOUNTING AND TONIGHT I'LL BE PRESENTING OUR UNAUDITED RESULTS FOR THE THIRD QUARTER ENDED JUNE, 2021.

[00:30:02]

UM, NEXT SLIDE, PLEASE.

THIS IS OUR STANDARD DISCLAIMER, SLIDE ON THE PRESENTATION, INCLUDING FORECASTED FINANCIAL INFORMATION.

AND OF COURSE, UM, THE PRESENTATION, UM, WITH FINANCIALS IS BASED ON REASONABLE INPUTS, ASSUMPTIONS, AND HISTORICAL DATA.

UH, ACTUAL RESULTS WILL VARY FROM OUR FORECAST AND WE PROVIDED A LINK ON THIS SLIDE.

HERE ARE AUDITED FINANCIAL STATEMENTS THAT WERE PUBLISHED IN MARCH OF THIS YEAR.

UM, AND JUST AS ANOTHER NOTE, THIS REPORT CONTAINS UNAUDITED INFORMATION.

AS A NORMAL PRACTICE, OUR STANDARD AGENDA, UM, WILL BE PRESENTED THIS EVENING, UM, FOR MARKET AND INDUSTRY ANALYSIS.

I'M GOING TO FOCUS ON OUR BOND RATING AND RATING AGENCY ACTIONS SINCE THE LAST QUARTERS REPORT.

THERE, YOU SEE AN EXECUTIVE SUMMARY OF OUR FINANCES, UM, AS YOU ALL KNOW, THE WINTER STORM AND COVID PANDEMIC HAVE, AND CONTINUE TO HAVE SIGNIFICANT IMPACTS ON OUR FINANCIAL POSITION.

UM, AS OF THE END OF THE THIRD QUARTER, WE'RE STILL GENERALLY COMPLIANT WITH OUR FINANCIAL POLICIES.

OUR CONTINGENCY AND CAPITAL RESERVE BALANCES ARE STILL SITTING BELOW MINIMUM.

UM, BUT JUST AS A NOTE, OUR TOTAL CASH EXCEEDS OUR MINIMUM BALANCE OF 457 MILLION.

WE ALSO HAD A SLIGHT DIP IN OUR DEBT SERVICE COVERAGE RATIO JUST BELOW TWO TIMES.

OUR OPERATING REVENUES ARE 14% UNDER BUDGET, AND THAT'S PRIMARILY DUE TO, UM, AS YOU KNOW, THOSE, UH, LOWER THAN EXPECTED POWER SUPPLY REVENUES.

UM, SINCE VENDOR REGULATORY ACCOUNTING AS A POWER SUPPLY EXPENSE AND REVENUE WILL END UP MATCHING, UM, AS A RESULT OF THAT, UM, BOTH OPERATING REVENUES AND OPERATING EXPENSES ARE UNDER BUDGET.

THE NUMBERS PRESENTED HERE JUST AS A NOTE FOR REVENUE AND EXPENSE, THEY DO REPRESENT OPERATING IMPACTS ONLY.

UM, AND WHAT THAT MEANS IS JUST BEFORE WE'RE ABLE TO MEET OUR CITY SUPPORT TRANSFERS AND OTHER INTERNAL TRANSFERS, UM, TO MEET OUR DEBT SERVICE PAYMENTS AND FUND THE CASH PORTION OF OUR CAPITAL IMPROVEMENT PLANS.

UM, YOU WILL SEE IN AN UPCOMING SLIDE THAT WE ARE SHOWING A NET LOSS ON A GAP BASIS OF 47 MILLION FOR THE 12 MONTHS ENDED JUNE AS OF THE END OF JUNE.

OUR CASH BALANCE IS SITTING AT 381 MILLION.

AND THEN FINALLY WE ARE CURRENTLY MEETING OUR AA CREDIT RATING METRIC ON JULY 20.

FIRST OF THIS YEAR, SMP DID REMOVE THE NEGATIVE WATCH.

UM, THEY REPLACED THAT WITH A NEGATIVE OUTLOOK.

UM, WE DID KEEP OUR AA RATING, WHICH IS GOOD NEWS.

UM, AND IN OUR MARKET AND INDUSTRY ANALYSIS SECTION, I'LL GO A LITTLE BIT MORE IN DEPTH ON THEIR RATING ACTIONS AND OUR CREDIT SUMMARY.

COVERAGE RATIO SITTING AT 1.9 TIMES.

UM, AS YOU KNOW, OUR FINANCIAL POLICIES ARE ADOPTED BY ORDINANCE EACH YEAR DURING OUR BUDGET PROCESS, AND WE ARE FULLY COMPLIANT WITH OUR OPERATING POLICIES.

AND AS I MENTIONED EARLIER, WE DO STILL HAVE PARTIAL COMPLIANCE WITH OUR RESERVE POLICIES, UM, DUE TO THAT CONTINGENCY AND CAPITAL RESERVE BALANCE.

UM, WE HAVE PARTIAL COMPLIANCE WITH OUR DEBT POLICIES, UM, AND THAT'S DUE TO THE COVERAGE RATIO THAT DIP TO RIGHT UNDER TWO TIMES AS OF THE END OF JUNE, UM, OUR TARGET, THERE IS 2.0, UM, THE COVERAGE RATIO HAS BEEN DECLINING AS A RESULT OF THE ACQUISITION OF NACADOCIOUS.

AND ALSO DUE TO THE LENGTH OF TIME SINCE OUR, UM, LAST BASE RATE ADJUSTMENT, WHICH WAS EFFECTIVE 2017.

UM, AND THAT'S CONTINUING TO CALL SOME ERODING MARGINS FOR US.

NEXT SLIDE AS I MENTIONED, SNP DID REAFFIRM OUR AA RATING IN JULY.

UM, AND JUST TO SHOW YOU SOME OF THE METRICS THAT KIND OF SIT UNDER THAT AA RATING UMBRELLA, UM, OUR DAY'S CASH ON HAND IS AT 239 DAYS, UM, WHICH IS, UH, WELL ABOVE OUR MINIMUM OF 150 ARE A DEBT

[00:35:01]

UM, JUST BELOW OUR TARGET OPERATING MARGINS ARE BELOW OUR GOAL OF 10%.

UM, AS OF THE END OF THE THIRD QUARTER, THEY WERE AT NEGATIVE FOUR, WHICH IS PRETTY CONSISTENT WITH WHERE WE SET AT MARCH.

UM, THIS IS A RESULT OF A LOWER CONSUMPTION AND SOME INCREASED OPERATING COSTS, UM, COUPLED WITH THE LONGEVITY.

UM, AS I MENTIONED SINCE OUR LAST FACE RATE ADJUSTMENT ON, UH, LEVERAGE OUR DEBT TO CAPITALIZATION, WE'RE SITTING AT 54.

UM, OUR GOAL THERE IS A 50%, UM, AND THAT'S STILL A RESULT OF THE ACQUISITION OF THE NEXT SESSION STABILITY, UM, WHICH AS, YOU KNOW, REDUCES COST FOR OUR CUSTOMERS, UM, VERSUS KEEPING THAT PPA IN PLACE.

WHAT CAN YOU TELL US ABOUT THE OPERATING MARGIN SITUATION, WHERE, HOW LONG IT RECOVERS AND WHAT ARE THE THINGS THAT ARE GOING TO MAKE IT GET BACK TO A 10%? SURE.

SO THE BIGGEST DRIVER OF THE MARGIN BEING DOWN RIGHT NOW, UM, IS DUE TO, UM, DEPRECIATION, WHICH IS ACCELERATED ON THE, UH, NACADOCIOUS FACILITIES.

SO WE HAVE THAT SITTING ON AT, UM, A MUCH SHORTER PERIOD THAN THE DEBT RECOVERY.

SO THAT'S PUTTING PRESSURE ON THE MARGIN.

WE ALSO HAVE SOME, UM, INCREASED COSTS FOR PENSION AND OTHER POST-EMPLOYMENT BENEFITS AND THOSE COSTS, UM, YOU KNOW, THEY ARE DEFERRED AT SOME POINT UNTIL WE GET THAT RECOVERY, BUT THE MARGINS STILL SUFFERS FROM, FROM THOSE INCREASED COSTS.

SO DOES THAT MEAN BY IN A YEAR, WE'RE GOING TO SEE A POSITIVE OR NEXT QUARTER OR WHAT? UM, BY THE END OF DECEMBER OF 2022, WHEN THAT ACCELERATED DEPRECIATION DROPS OFF, THAT WILL, UM, IMPROVE.

UM, BUT AS I MENTIONED, THE, THE BASE RATE ADJUSTMENT, UM, WILL ALSO, UM, HELP THOSE ERODING MARGINS.

SO YEAH, THIS HAS CARRIED FOR CHILL.

I JUST THINK I FOLLOW ALL THIS, BASICALLY, YOU'RE SAYING THAT THE MARGIN PRESSURE IS COMING FROM NON-CASH CHARGES.

THE DEPRECIATION BEING A NON-CASH COSTS, UM, ACCELERATED A MUCH HIGHER RATE THAN THAT RECOVERY IS COMING IN.

THAT'S CORRECT.

AND THIS IS, THIS IS REALLY WHAT WE KNEW WHEN WE TOOK ON AN ACADEMIC THIS PLANET AND, YOU KNOW, SO I THINK I, I FOLLOW THAT.

I THINK I'M OKAY WITH THAT.

UM, THE SLIDE YOU'RE SEEING HERE IS OUR AFFORDABILITY GOALS.

UM, THE AFFORDABILITY METRICS, UM, THE SETS, UM, SEEK TO MAINTAIN SYSTEM AVERAGE RATES AT, OR BELOW THAT 2% ANNUAL COMPOUND GROWTH RATE.

WE HAVE CONSISTENTLY MET THAT METRIC SINCE 2013.

UM, THE OTHER METRIC IS COMPETITIVENESS, UM, AND THAT SEEKS TO MAINTAIN THAT AVERAGE ANNUAL SYSTEM RATE IN THE LOWER 50% OF ALL TEXAS UTILITIES THAT SERVE CUSTOMERS.

UM, AS WE DO RESIDENTIAL COMMERCIAL AND INDUSTRIAL, UM, THE 2019 INFORMATION IS WHAT'S PRESENTED HERE, IT'S ON A CALENDAR YEAR THROUGH THE ENERGY INFORMATION ADMINISTRATION.

AND, UM, AT 20 OUR SYSTEM AVERAGE RATE WAS 97.6% OF THE STATE AVERAGE.

SO, UH, THE NEXT COUPLE OF SLIDES THAT I'LL PRESENT ARE ON A BUDGET BASIS OF REVENUES AND COSTS ON THE OPERATING REVENUE SIDE.

UM, AT THE END OF THE THIRD QUARTER, WE WERE ABOUT 14% BELOW OUR FORECASTED BUDGET AMOUNTS, UM, WITH POWER SUPPLY DRIVING, MOST OF IT DIFFERENT.

UM, THOSE REVENUES WERE ABOUT 40% UNDER BUDGET.

UM, BASED REVENUE IS ALSO UNDER BUDGET FOR THE PERIOD ABOUT 3% AS A RESULT OF LOWER THAN FORECAST OF CONSUMPTION AND DEMAND.

OPERATING EXPENSES ALSO CAME IN BELOW OUR FORECAST, UM, MOSTLY DUE TO LOWER POWER SUPPLY COSTS, WHICH WERE ABOUT 43% UNDER DUE TO THE WINTER EVENT.

UM, TOTAL OPERATING EXPENSES ARE BELOW BUDGET, UM, AS A WHOLE, AND THAT'S MOSTLY DUE TO TIMING OF PLANNED EXPENDITURES.

THIS IS A BROADER VIEW OF OUR FUND SUMMARY STILL ON A BUDGET BASIS.

[00:40:02]

UM, OUR OPERATING REVENUES CAME IN AT 843 MILLION, WHICH AS I MENTIONED IS ABOUT 14% UNDER BUDGET, LARGELY DUE AGAIN TO THE LOWER POWER SUPPLY REVENUE OPERATING EXPENSES OF 645 MILLION.

WE'RE ALSO UNDER BUDGET, UM, PRIMARILY DRIVEN BY THE SAME AS THE OPERATING INCOME RESULTS.

AND THIS IS ON A BUDGET BASIS IS 198 MILLION OF INCOME.

BUT THEN AS YOU'LL SEE, AS YOU MOVE DOWN THE PAGE THAT SERVICE REQUIREMENTS AND OUR TRANSFERS PUSH US INTO A DEFICIENCY OF 115 MILLION.

AND THAT'S COMPARED TO OUR FORECASTED A DEFICIENCY OF 72 MILLION VIP TRANSFERS, WHICH ARE AT THE BOTTOM OF THE PAGE, THOSE ARE OVER BUDGET AND THAT'S DRIVING MOST OF THAT FLUX.

UM, THAT'S DUE TO A CHANGE IN OUR CURRENT YEAR ESTIMATE.

UM, AND THAT WAS DUE TO TIMING OF THE GAIN ON SALE RELATED TO THE TRANSFER OF TOWN LAKE CENTER.

OUR INTEREST INCOME IS, UH, SHOWING UNDER BUDGET AND THAT'S DUE TO SLIGHTLY LOWER INTEREST RATES PAIRED WITH A REDUCED AVERAGE, UM, CASH BALANCE THAT WE'RE HOLDING NEXT SLIDE.

OUR ENERGY SALES THROUGH THE THIRD QUARTER.

UM, WE'RE UNDER FORECAST FOR THE YEAR, WHICH IS ABOUT 2% UNDER, UM, THE FLUCTUATIONS THAT YOU'RE SEEING ON A MONTHLY BASIS ARE MOSTLY, UM, WEATHER DRIVEN, ESPECIALLY IN THE THIRD QUARTER.

NEXT ONE, OUR NON POWER SUPPLY REVENUE IS ABOUT 4% LOWER THAN FORECAST.

UM, AND THAT'S DUE TO WEATHER ON THE RESIDENTIAL SIDE AND LOWER DEMAND ON THE COMMERCIAL SIDE, RIGHT FOR POWER SUPPLY BUDGET ACTUAL, UM, YOU'LL SEE THE BLUE LINE, WHICH IS REPRESENTING THE POWER SUPPLY ADJUSTMENT REVENUE, WHICH OF COURSE IS SET TO RECOVER THOSE POWER SUPPLY COSTS.

AND WE STARTED THE FISCAL YEAR OVER RECOVERED AND PSA BY 7 MILLION THAT WE DID, UM, SET THAT RATE, UH, LOWER TO RETURN THAT EXCESS TO OUR CUSTOMERS, UM, DUE TO THE WINTER EVENT.

AND WE'RE CURRENTLY SITTING AT AN OVER RECOVERY OF 121 MILLION.

AND MOST OF THAT OVER RECOVERY, UM, OF COURSE IS ATTRIBUTABLE TO THE WHOLESALE MARKET BENEFIT WE SAW AND NOT, UM, A RETAIL CUSTOMER RELATED OVER RECOVERY.

IT'S ALSO WORTH NOTING HERE THAT THIS OVER RECOVERY IS NOT ALL RECEIVED BY ERCOT.

AS WE HAVE A RECEIVABLE, UM, SITTING ON OUR BOOKS AS A 49 MILLION AT JUNE.

NEXT SLIDE WE HAVE SPENT, UM, ON THE CAPITAL SIDE ABOUT 69% OF OUR SIN PLAN FOR THE YEAR.

UM, THE LARGEST PROJECT THAT YOU SEE HERE ON THE GRAPH ON THE RIGHT IS OUR CORPORATE HEADQUARTERS BUILDING.

UM, WE HAD ABOUT $88 MILLION AND 21 RELATED TO THAT PROJECT.

AND WE DID TAKE POSSESSION OF THE BUILDING IN APRIL AND CURRENTLY PREPARING FOR OUR STAFF TO OCCUPY OUR NEW HEADQUARTERS.

UM, AT THE APPROPRIATE TIME, WE DO HAVE SOME PRETTY SIGNIFICANT SPENDING EXPECTED IN DISTRIBUTION.

UM, THE MAIN DRIVER OF THAT IS OF COURSE, THE CUSTOMER GROWTH IN OUR SERVICE TERRITORY.

AND YOU'LL SEE IN THE PIE CHART, UM, THAT WE DO HAVE THOSE CONTRIBUTIONS AND AID OF CONSTRUCTION AND THOSE SERVE AS A FUNDING SOURCE, UM, THAT ULTIMATELY, YOU KNOW, REDUCES THE AMOUNT OF DEBT AND CASH THAT WE NEED TO FUND THE, UH, THOSE PROJECTS.

NEXT SLIDE FOR THE 12 MONTHS ENDED JUNE, 2021, OUR NET POWER SUPPLY COSTS FOR 255 MILLION.

THAT'S THE GREEN BAR TO THE FAR RIGHT VERSUS A LOAD COST OF ABOUT 2 BILLION.

UM, AND AS YOU'RE AWARE, THE WINTER STORM OBVIOUSLY HAD A MATERIAL IMPACT ON THOSE LOAD ZONE COSTS.

UM, AS WELL AS THOSE REVENUES THAT WE RECEIVED FROM OUR OWNED AND CONTRACTED ASSETS, THE PSA RESULTS AT THE END OF JUNE DO GIVE US A SIGNIFICANT POSITIVE BALANCE OR OVER RECOVERY.

UM, BUT AS I MENTIONED EARLIER, UM, NOT ALL OF THAT OVER RECOVERY HAS BEEN REALIZED IN CASH, UM,

[00:45:01]

DUE, DUE TO THE SHORT PAYMENTS THAT EXISTED AND SOMETHING TO CHANNEL, UM, POTENTIAL LIABILITIES THAT WE, UM, COULD OWE AS A RESULT OF THE EVENT.

HOW LONG DO YOU THINK IT'LL TAKE TO RECONCILE THAT BY ERCOT? AND WHEN DO YOU THINK YOU'D GET AES 49 MILLION? SO THAT IS, UH, AS YOU KNOW, DRIVEN BY, UM, THE LEGISLATION THAT'S PENDING RIGHT NOW.

UM, AND SO UNTIL I THINK THAT GOES THROUGH ALL THE APPROPRIATE PROCESSES, WE WON'T KNOW.

UM, BUT, BUT 49 MILLION IS A RECONCILED BALANCE, BUT AS A KNOWN NUMBER THAT, THAT WE DO HAVE AN AR FROM THEM.

UM, SO YEAH, IT, IT, IT'S, IT'S THROUGH THAT PROCESS THAT WE'LL KNOW MORE, UM, ON THE TIMING OF THAT, THIS IS CARRIE FOR CHILL.

UM, SO IF, IF I UNDERSTAND IT AND I'M CERTAINLY NO EXPERT ON THE LEGISLATION, UH, BUT IF I UNDERSTAND IT CORRECTLY, THAT'S REALLY A MATTER OF TIMING OTHER THAN, UH, BECAUSE THAT LEGISLATION IS SET TO ACTUALLY MAKE THAT 49 MILLION, HEY, AT SOME POINT.

RIGHT? CORRECT.

SO IT'S JUST A QUESTION OF WHEN THEY, WHEN THEY'RE ABLE TO ISSUE THAT THAT'S CORRECT.

THIS IS A COMMISSIONER TROSTLE.

UM, SO IS THAT 49 MILLION TIED UP WITH THE SECURITIZATION THAT'S GOING TO BE OCCURRING? UM, THAT, THAT BILL WOULD ALLOW US TO RECEIVE, UM, THAT CASH BACK? YES.

ONCE THAT SETTLED OUT.

ALL RIGHT.

THE NEXT TWO SLIDES THAT I'M GOING TO PRESENT, UM, ARE ON A GAP BASIS, WHICH IS, UM, AND THAT'S, WHAT'S JUST FULL OF PEARL ACCOUNTING, UM, WHICH IS, UM, LESS OF A CASH BASIS THAN YOU'VE SEEN SO FAR FOR THE BALANCE SHEET.

UM, I'VE HIGHLIGHTED OUR RETAINED EARNINGS HERE, WHICH IS OUR NEXT SESSION.

UM, IT'S DECREASING AS A RESULT OF THOSE, UM, REDUCED MARGINS THAT WE TALKED ABOUT EARLIER, UM, AND IT'S WORTH MENTIONING AS WELL AS THE COSTS THAT ARE BROUGHT UP, THAT THAT CONSUMPTION IS ALSO PUTTING ON THOSE MARGINS.

UM, AS WELL AS THOSE OPERATING EXPENSES AND DEBT SERVICE REQUIREMENTS.

UM, OUR CURRENT RATES, AS YOU KNOW, ARE BASED ON, UM, ACTUAL EXPENSES FROM A TEST YEAR OF 2014, UM, WHICH WERE USED TO ESTABLISH THOSE BASE RATES IN OUR LAST REVIEW, EFFECTIVE 2017.

THE CHART ON THE UPPER RIGHT SHOWS OUR WORKING CAPITAL RESERVES, WHICH CAME IN AT 669 MILLION AT JUNE.

UM, THE BOTTOM RIGHT CHART IS OUR COMMERCIAL PAPER PROGRAM.

AND YOU'LL SEE THE DIP IN THE FIRST QUARTER OF 21.

AND THAT'S WHEN WE ISSUED REVENUE BONDS.

UH, WE CURRENTLY SIT AT $63 MILLION IN COMMERCIAL PAPER ISSUES.

UM, WE DO MONITOR THE NEEDS OF THAT SHORT TERM DEBT ON A MONTHLY BASIS.

NEXT SLIDE PLEASE.

AND THIS IS ANOTHER GAP FINANCIAL VIEW HERE.

UM, THE INCOME STATEMENT ON THE RIGHT, UM, OUR NON POWER SUPPLIES SENSES ARE UP 36 MILLION AND THAT'S PRIMARILY DUE TO THOSE OTHER POST-EMPLOYMENT BENEFITS AND PENSION COSTS THAT I MENTIONED.

THE OTHER REVENUE IS UP DUE TO, UM, REGULATORY ACCOUNTING TREATMENT OF THOSE BENEFIT AND PENSION COSTS.

UM, AND I SUPPOSE THE REVENUE JUST THE FIRST, THE COSTS UNTIL THEY'RE BUILT INTO OUR BASE RATES FOR A RECOVERY IN THE FUTURE, THE $47 MILLION NET LOSS I'VE HIGHLIGHTED IS DUE TO THE IMPACT OF THOSE DECREASING OPERATING MARGINS.

ON THE CUSTOMER ACCOUNT SIDE, WE HAVE SEEN GROWTH OF ABOUT 13,000 OR 2.6% WHILE OUR SALES, UM, DECREASED BY ABOUT THE SAME PERCENTAGE, UM, AS WE'VE REPORTED, UH, THOSE RETAIL SELLS ARE RELATIVELY FLAT, UM, COMPARED TO THE SIGNIFICANT CUSTOMER GROWTH IN OUR TERRITORY.

UM, COVID HAS SEEMED TO AMPLIFY, UM, THAT TREND.

AND AGAIN, OUR MARGINS ARE SUFFERING FROM THE PRESSURE THAT PUTS ON OUR REVENUES.

HAVE, UM, AN UPDATE ON THEIR OUTLOOK OF AUSTIN ENERGY, UM, TO START, I'LL JUST GIVE A QUICK RECAP OF OUR, UM, FINANCIAL SUMMARY POST-STORM, UM, AUSTIN ENERGY'S POSITION IS NET POSITIVE.

MARKET AND INDUSTRY ANALYSIS FOCUS.

THIS QUARTER IS ON STANDARD AND POOR'S RATING ACTIONS, UM, POST, UH, WINTER STORM, AS WE

[00:50:01]

UM, AS THE REVENUE FROM THAT POWER THAT WE PRODUCED AND SOLD TO THE MARKET, I WAS GREATER THAN THE COST OF POWER THAT WE ENDED UP BUYING TO SERVE OUR CUSTOMERS.

UM, AS I, WE HAVE THAT WHOLESALE MARKET OVER RECOVERY THAT WE ARE, UM, REVIEWING, UM, CLOSELY AS WE LOOK TO SET THE NEXT PSA RATE.

UM, TODAY I'LL FOCUS ON SNPS RATING ACTIONS ON OUR CREDIT WORTHINESS.

UM, WE DO WORK WITH THREE RATING AGENCIES, UM, BUT S AND P IS RATING IS OUR FOCUS FOR OUR FINANCIAL HEALTH GOAL METRICS FOR OUR STRATEGIC PLAN.

AND AS I MENTIONED, WE DO HAVE SOME UPDATES ON THEIR ACTIONS SINCE OUR LAST QUARTERLY REPORT THAT WE PROVIDED TO YOU.

NEXT SLIDE UM, TO SUMMARIZE, UM, SNPS ACTIONS OF THE WINTER STORM.

UM, I PROVIDED A QUICK RECAP FIRST ON THE MARCH, 2021 ACTIVITY.

UM, AT THAT TIME, UM, RIGHT AFTER THE STORM, WE WERE PLACED ON CREDIT WATCH WITH NEGATIVE IMPLICATIONS, UM, ALONG WITH MOST OTHER UTILITIES.

AND THAT WAS PRIMARILY DUE TO, UM, THE ERCOT ERCOT MARKET RISK, UM, DUE TO THOSE SHORT PAYS AND POTENTIAL UPLIFTS THAT EXISTED AT THAT TIME, AS WELL AS THE UNCERTAIN LEGISLATIVE ENVIRONMENT, UM, CREDIT WATCH, UH, IS OFTEN EVENT-DRIVEN, UM, AND EXPECTED TO BE RESOLVED IN THE SHORT TERM, UM, IN JULY OF 2021 S AND P DID REMOVE US FROM CREDIT WATCH AND AFFIRMED BY OUR AA RATING, JUST GREAT NEWS.

UM, THE FACTORS CONTRIBUTING TO THEIR ACTIONS, UM, INCLUDE THEIR VIEW ON OUR LIMITED EXPOSURE TO SUMMER ERCOT MARKET PRICE VOLATILITY.

UM, IN COMPARISON TO OUR PEERS, THEY DID, ALTHOUGH MOVE US FROM STABLE OUTLOOK TO NEGATIVE OUTLOOK, UM, AND THAT GIVES THEM A LONGER TIME HORIZON TO, UM, MAKE AN ULTIMATE DECISION ON OUR RATINGS.

UM, THE FACTORS THAT THEY CITED THAT DROVE THAT DECISION INCLUDE OUR PLANS TO REVISE OUR PORTFOLIO AND RETIRE ADDITIONAL GENERATIONS AND THEIR VIEW THAT ADDS OPERATING RISKS TO US, UM, WITH RELIANCE ON, UM, MORE RENEWABLE RESOURCES, UM, WHILE AUSTIN ENERGY DOES CONTINUE TO ADD MEASURES TO REDUCE THAT PRICE EXPOSURE, UM, S AND P VIEW, UM, IS THAT IT DOESN'T, UM, COMPLETELY ELIMINATE OUR EXPOSURE DURING THE STRESS SCENARIOS, SUCH AS THE WINTER EVENTS.

OVERALL.

UM, AUSTIN ENERGY CONTINUES TO HAVE HEALTHY LIQUIDITY LEVELS.

UM, WE HAVE STABLE FORECASTED THAT COVERAGE METRICS, UM, AND COMPETITIVE AND ADJUSTABLE RATES, UM, AND ALL OF THOSE FACTORS ARE VIEWED AS CREDIT CREDIT POSITIVE, THE RATING AGENCIES.

UM, THE FINANCE TEAM AT AUSTIN ENERGY CONTINUES TO COLLABORATE WITH OUR MARKET OPERATIONS AND POWER PRODUCTION, UM, TEAMS, UM, TO MAKE SURE WE'RE ADDRESSING, UM, THE RATING AGENCIES CONCERNS, UM, RELATED TO OUR GENERATION FLEET AND HOW WE'RE MANAGING OUR RESOURCES AND PRICE RISKS, ALL IN ALL TO SUMMARIZE, UM, AUSTIN ENERGY'S CREDIT RATING.

IT DOES REMAIN STRONG AT AA, UM, WHICH GIVES THE, A GOOD LEVEL OF CONFIDENCE TO INVESTORS, UM, ON OUR ABILITY TO MEET OUR FINANCIAL OBLIGATIONS, UM, ON TIME AND IN FULL.

AND, UM, OF COURSE THAT KEEPS THOSE BARRING, UH, RATES AND COSTS LOW FOR OUR CUSTOMERS.

AND WE WILL CONTINUE TO WORK WITH, UM, ALL THREE OF THE RATING AGENCIES WHO WERE IN PRETTY CLOSE CONTACT WITH CONSTANTLY, UM, TO ENSURE THAT THEY RECEIVE TIMELY AND ACCURATE INFORMATION, UM, RELATED TO AES FINANCES AND OPERATIONS.

THANKS, BYE.

SO THIS DOES CONCLUDE MY QUARTER THREE PRESENTATION EVENING.

UM, ANY OTHER QUESTIONS THAT I CAN ANSWER? THEY? SHOULD I GO AHEAD PLEASE?

[00:55:03]

AND I'M NOT SURE IF YOU CAN ANSWER THIS OR, OR WHO CAN, BUT IT SEEMS LIKE ONE OF THE THINGS THAT COULD HELP, UH, KEEP OUR CREDIT RATINGS HIGH IS TO ENSURE THAT OUR NATURAL GAS CONTRACTS ARE REQUIRING A DEMONSTRATION, UM, THAT THE PROVIDERS OF NATURAL GAS BE WEATHERIZED TO WITHSTAND ANOTHER WINTER STORM OF THE SEVERITY OF WHAT WE'VE EXPERIENCED, UM, IN 2021.

AND I'M WONDERING IF THAT IS HAPPENING IN OUR CONTRACTS, AND MAYBE THIS IS A QUESTION THAT COULD BE ANSWERED NEXT TIME AROUND IT DOESN'T NEED A WHOLE BRIEFING, BUT MAYBE WE COULD PUT IT ON THE AGENDA FOR A RESPONSE ON THAT FRONT.

UH, SURE.

UM, I, I CAN ANSWER THAT WE DO HAVE SOME COSTS AND OUR CAPITAL PLAN, UM, TO ADD THOSE, UM, WINTERIZATION MEASURES FROM THE RATING AGENCY PERSPECTIVE.

YOU KNOW, THAT'S SOMETHING THAT THEY'VE TALKED ABOUT WITH US.

UM, THEY'RE ALSO JUST AS WELL, LOOKING AT THE, THE OPERATION RISK JUST FROM OUR CHANGING PORTFOLIO.

UM, BUT YET MORE INFORMATION ON THE WINTERIZATION.

UM, I COULD MAYBE DEFER TO A TEAM OR A FOLLOW UP WITH MORE DETAILS ON THAT.

I'M HOPING THAT IF IT'S NOT IN CONTRACTS THAT MAYBE WE CAN FIND A WAY TO, UM, DO SOME ADDITIONAL AGREEMENTS OR SOMETHING.

UM, WE NEED TO HAVE, HAVE THAT IN PLACE COMMISSIONER AT THIS JEFF PIES.

WE'LL, WE'LL FOLLOW UP ON THAT.

THANK YOU VERY MUCH.

HEY, JEFF, THAT WOULD BE GREAT IF WE PUT THAT ON HERE, BECAUSE I THINK THAT CARRIE AND I AT LEAST HAVE TALKED ABOUT THE CHANGING RISK PROFILE AND THE CONCERN OVER TIME ON THAT JUST FOR THE LONG-TERM HEALTH AND RISK MANAGEMENT CONCERN.

SO ANY OTHER COMMENTS OR QUESTIONS? THANK YOU.

THIRD QUARTER

[10. 3rd Quarter Operations Briefing]

OPERATIONS BRIEFING.

WE'LL UH, MOVE OVER DEPUTY GENERAL MANAGER, SYDNEY JACKSON, AND PULL UP HIS PRESENTATION.

RENEWABLE CONTRIBUTION AS A PERCENTAGE OF LOAD, UH, IS 52% FOR THIS PARTICULAR REPORT THAT COMPARES TO 48% FROM PREVIOUS QUARTERS.

WELL, GOOD AFTERNOON, AFTERNOON, UH, CHAIR, MR. CHAIR, DAVID TUTTLE AND ELECTRIC UTILITY COMMISSION MEMBERS.

AGAIN, I AM SITTING IN JACKSON, DEPUTY GENERAL MANAGER AND CHIEF OPERATIONS OFFICER AND AUSTIN ENERGY, AS IT IS BEEN OUR TRADITION.

I WILL BE PRESENTING THE ACUTE, THE THREE QUARTERLY OPERATIONS REPORT, WHICH IS AN OVERVIEW OF ELECTRIC OPERATIONS, NAMELY FOR THE APRIL, MAY AND JUNE, UH, TIMEFRAME SLIDE NUMBER TWO, PLEASE.

OUR FOCUS TODAY WILL BE ON POWER SUPPLY OPERATIONS, TAKING A LOOK AT OUR SUPPLY ANALYSIS AND LOAD.

ALSO TAKE A LOOK AT RENEWABLE PERFORMANCE FROM A GRANULAR PERSPECTIVE, AND ALSO TAKE A LOOK AT SYSTEMS RELIABILITY, VERY SIMILAR TO WHAT WE HAVE DONE IN THE PAST.

SLIDE.

NUMBER FOUR, THIS SLIDE SPEAKS TO OUR POWER SUPPLY PERFORMANCE.

AS I PREVIOUSLY COMMUNICATED THREE MONTHS AGO, MUCH OF OUR PREPARATIONS DURING THAT TIME OR, UM, PLANNED OUTAGES TO MAKE SURE THAT WE ARE RELIABLE FOR THE PEAK SUMMER SEASON, WHICH IS NOW ALSO FOR Q3.

THAT IS, UH, THE SAME SCENARIO WHILE SOME OF THE AVAILABILITY METRICS ON THE RIGHT HAND COLUMN ARE LOWER FOR SANDHILL, DECKER AND SOUTH TEXAS PROJECT.

THOSE ARE DRIVEN BY PLAN TO OUTAGES AND THOSE NUMBERS WERE EXPECTED FOR Q THREE.

UH, ALSO I'D LIKE TO DRAW YOUR ATTENTION TO THE BOTTOM, OR WE START SUCCESS OF OUR SIMPLE CYCLE, UH, TURBINES.

THAT'S INDICATIVE OF OUR RELIABILITY ON OUR BILL, OUR ABILITY TO RESPOND PROMPTLY AND EFFECTIVELY TO DISPATCH INSTRUCTIONS OR COMMITMENT DISCHARGE INSTRUCTIONS FROM, FROM ERCOT.

SO AGAIN, THIS A HUNDRED PERCENT NUMBER HAS BEEN, UH, I'VE SEEN THIS, WE'VE SEEN THIS QUARTER OVER QUARTER OVER QUARTER, AND THAT IS A VERY GOOD TREND SLIDE.

NUMBER FIVE, PLEASE.

THIS SLIDE TAKES A LOOK AT OUR RESOURCE, MS. NICKS FROM A VERY, UH, VARIOUS PERSPECTIVES AND STARTING, YOU CAN SEE OUR

[01:00:01]

SO YOU CAN SEE THAT THAT IS INCREASING.

ALSO LOOKING AT THE TOP LEFT.

YOU CAN SEE OUR POWER GENERATION COST BY FUEL TYPE IS PROBABLY BEEN FROM PRIMARILY A RENEWABLE AND THAT THAT CAN BE EXPECTED.

UM, BUT THEN ALSO LOOKING AT OUR GENERATION VERSUS LOAD IN AGGREGATE TOTAL MEGAWATT HOURS IN THE UPPER, RIGHT.

AND YOU CAN SEE MOST OF THAT IS RENEWABLE AS WELL.

SLIDE NUMBER SIX, PLEASE.

HERE WE TAKE A LOOK AT SYSTEM RELIABILITY AND WE'RE LOOKING AT QUARTER THREE THIS PARTICULAR YEAR VERSUS QUARTER THREE THE LAST YEAR.

UNFORTUNATELY, THESE TRENDS SHOW A UNFAVORABLE REGRESSION AS COMPARED TO THE QUARTER THREE OF LAST PARTICULAR YEAR.

I WOULD REMIND YOU THAT THREE MONTHS AGO WHEN WE SPOKE OF QUARTER TWO SHOWED FAVORABLE TRENDS AS COMPARED TO QUARTER TO QUARTER OF PREVIOUS YEARS.

SO THAT WAS A VERY POSITIVE TREND THERE.

UH, ONE OF THE CONTRIBUTING OR THE MAJOR CONTRIBUTING FACTOR BY FAR HERE IS WEATHER, AND LIKE TO TAKE A CLOSE LOOK AT, UH, SOME OF THE WEATHER IN THIS PARTICULAR QUARTER, LOOKING AT THE WEATHER IN QUARTER THREE, MEANING THE APRIL MAY AND JUNE TIMEFRAME, WE HAVE HAD AN UNPRECEDENTED WEATHER IN THE AUSTIN SERVICE TERRITORY.

SOME SPECIFICS I'D LIKE TO DRAW YOUR ATTENTION TO APRIL.

WE HAD EXTREME RAIN RAINS, SOME OF THE MOST ON RECORD, UH, FOR OUR AUSTIN SERVICE TERRITORY.

MAY WE HAD SOME OF THE WETTEST, UH, MAY ON RECORD OFFICIAL RANKINGS.

UH, THE FOURTH WETTEST MAY ON RECORD, WELL OVER SEVEN INCHES ABOVE NORMAL.

UM, AUSTIN ENERGY ALSO FOR JUNE HAD THE START THAT HAD THE FOURTH WETNESS START, UH, IN JUNE AS WELL.

IN ADDITION IS WE ACTUALLY LOOK AT MAJOR EVENT DAYS THAT HAPPENED IN 2020.

AND THESE ARE THE EXTREME DAYS WHERE YOU HAVE OUTLIERS IN TERMS OF RELIABILITY EVENTS.

WE HAD 0 20, 20, 20, AND A NEW NUMEROUS OF THEM IN THIS PARTICULAR YEAR.

ALSO LOOKING AT THE TOTAL NUMBER OF WEATHER RELATED INCIDENTS AND OUTAGES THAT WE HAD THIS YEAR.

THEY WERE ORDERS OF MAGNITUDE HIGHER, ALMOST DOUBLE AS COMPARED TO WHAT WE EXPERIENCED OF LAST YEAR.

UNFORTUNATELY IT'S DIFFICULT TO FULLY WEATHER NORMALIZE THESE NUMBERS, UH, BUT I ALSO LIKE TO STRESS WHERE WE ARE MAKING IMPROVEMENTS AND MAKING STRIDES WHERE WE'VE MADE RELIABILITY ENHANCEMENTS RELATIVE TO VEGETATION MANAGEMENT, JUST CONTINUE TO FOCUS ON UNDERPERFORMING FEEDERS, UH, WILDFIRE MITIGATION, THE NUMBER OF CONTRACTORS ON SITE WORKING IN VEGETATION MANAGEMENT.

YOU CALL ON THE MAY 28TH, UH, MEMORIAL DAY STORM, UH, DURING DISCUSSIONS, UM, THE COUNCIL HAD ASKED FOR INFORMATION RELATIVE TO SOME OF OUR VEGETATION MANAGEMENT FOR THAT PARTICULAR STORM.

AND WE REPORTED BACK THAT OVER THE MEMORIAL DAY STORM AND MAY 28TH OF THE CIRCUITS THAT HAD BEEN COMPLETE COMPLETELY TRIMMED RECENTLY, UH, VIRTUALLY ZERO OUTAGES ON THOSE OF THE CIRCUITS THAT HAD NOT BEEN TRIMMED, UH, 89% OF THE ALLERGIES COULD BE ALLOCATED TO THEM.

AND THOSE CIRCUITS THAT WERE PARTIALLY TRIMMED WAS 11%.

AGAIN, AFFIRMATION OF THE EFFECTIVENESS OF THE TREE TRIMMING ALSO LIKE TO TURN YOUR ATTENTION TO, WE ARE MEETING WITH HOMEOWNERS ASSOCIATION AND THAT FOCUS ON VEGETATION MANAGEMENT HAS BEEN HELPFUL.

UM, AND THEN IN ADDITION TO THAT, UM, WE HAVE IMPROVED OUR STORM DISPATCH, OUR STORM RESPONSE, AND SOME OF OUR STORM RESTORATION RESTORATION PROCESS PROCESSES.

WE'RE GOING TO SLIDE NUMBER EIGHT, PLEASE JUST LOOKING AT RENEWABLE GENERATION.

UH, THE PREVIOUS SLIDE THERE WE GO, LOOKING AT RENEWABLE GENERATION BY MONTH.

WE CALLED MARCH WAS THE, THE MOST PERCENTAGE OF LOAD RENEWABLE GENERATION THAT WE HAVE EVER HAD AT 70%, UH, APRIL AND MAY GREATER THAN 60%, VERY ROBUST.

AND THEN ALSO, UM, YOU SEE JUNE THERE AGAIN CONTINUED, UH, EFFECTIVENESS OF OUR RENEWABLE GENERATION SLIDE NINE, PLEASE TAKING A LOOK AT SOME OF THE NEW RESOURCES COMING IN TO OUR FLEET.

AND THE GOOD NEWS

[01:05:01]

HERE IS THAT WE CONTINUE TO INVEST AND BRING ONLINE RENEWABLE RESOURCES, OR THIS PARTICULAR QUARTER, APRIL, MAY AND JUNE.

WE HAVE ADDED RAIDER THAN 300 MEGAWATTS THAT HAVE ACTUALLY COME ONLINE.

THIS PARTICULAR BORDER OF THE GULF WIND PROJECT, 170 MEGAWATTS CAME ONLINE IN MAY AND THE EAST BLACK SOLAR PROJECT AT 144 MEGAWATTS CAME ONLINE IN JULY, BOTH SIGNIFICANT IN TERMS OF BREADTH AND SIZE AT, AT GREATER THAN 300 MEGAWATTS COMBINED.

AND AGAIN, AFFIRMATION OF OUR RENEWABLE CONTINUED INVESTMENT IN RENEWABLE RESOURCES AS WE LOOK TO THE LAST QUARTER OF THE YEAR AT OUR CALENDAR YEAR OR OUR FISCAL YEAR.

UM, WE LOOK, I SHOULD SAY OF THE CALENDAR YEAR WE WERE LOOKING TO BRING ON EVEN ADDITIONAL NEW RENEWABLE RESOURCES.

THE AUSTIN AIRPORT, SOLAR IS AWAITING FINAL ADMINISTRATIVE APPROVALS ARE GONE SOLAR AGAIN IN OCTOBER OPERATIONAL DATE ANTICIPATED AND THE PANDORA SOLAR 250 MEGAWATTS FOR DECEMBER, UH, ANTICIPATED DATE AT THIS POINT AGAIN, SIGNIFICANT INCREMENTAL, RENEWABLE CONTRIBUTIONS, UH, THROUGH THE END OF THE CALENDAR YEAR.

I THINK TO SLIDE 11, PLEASE.

AGAIN, DISTRICT COOLING WE'D HAVE MADE SOME INCREMENTAL CAPACITY INVESTMENTS.

THE DOWNTOWN NETWORKS SPECIFICALLY THE DISTRICT COOLING AT NUMBER THREE IS ALMOST COMPLETE IN TESTING PHASES AND ABOUT TO ENTER THE INSTRUCTION CLOSE OUT PHASE.

AND SO THAT IS GOING ON REGARDING THE MUELLER NETWORK.

WE'RE IN THE VERY PRELIMINARY DECISIONS OF CONCEPTION OF THAT SHILLING FACILITY AND THE AUSTIN COMMUNITY COLLEGE NETWORK, UH, FINAL PHASES OF THAT CONSTRUCTION AND COMPLETION.

THE LAST SLIDE, NUMBER 13, PLEASE JUST LOOKING AT SOME OF OUR STRATEGIC GOALS, THE COMPLETION OF THE FIST, THIS FIELD SUBSTATION PROJECT THAT HAS BEEN COMPLETE.

THAT'S A SUBSTATION UPGRADE AND WE WERE ON TARGET FOR UNDERGROUNDING, UH, NETWORK RELIABILITY.

I'M PLEASED TO ANNOUNCE THAT OUR TRANSMISSION PLANNING STATEMENT OF WORK UNDER THE LAST CATEGORY, UH, THE REVIEW OF THE REQUEST FOR PROPOSALS ARE IN PROCESS.

SO THAT IS A SIGNIFICANT DEVELOPMENT OF THEIR, UM, MISSION CHAIR TITLE THAT CONCLUDES, UH, OUR OR THREE OPERATIONS REPORT.

UH, I DO HAVE A QUESTION ON THE TRANSMISSION SYSTEM, THE FUTURE, THAT LAST CHARTER.

SO WHEN WILL THE ACTUAL ANALYSIS BE UNDERWAY AND THEN HAVE THE RESULTS READ OUT? WELL, A PROJECT PLAN I DON'T BELIEVE HAS BEEN PUT TOGETHER SUCCINCTLY IF WE CAN BRING OVER TOM YOUR POINT AND ERICA, THEY HAVE BEEN WORKING ON THIS, UH, JOINTLY, BUT AN ACTUAL PROJECT PLAN HAS BEEN FORMALLY PUBLISHED, BUT TYPICALLY THAT TAKES SOME TIMES THAT IS A VERY EXTENSIVE PROCESS.

IS THAT SOMETHING I CAN GET BACK WITH YOU IN TERMS OF WHEN WE CAN EXPECT THAT? SURE.

COULD I ASK MR. PUREPOINT OR ERIC OR BOSCH IF THEY HAVE ANYTHING TO ADD TO THAT? THIS IS ERICA .

UM, WE ARE LOOKING AT, UH, 20, 22 AS, UH, WHERE WE WILL BE IN EARNEST, UH, WORKING WITH, UM, THE, UM, THE SELECTED, UM, UH, VENDOR, UH, TO BE ABLE TO COMPLETE THAT ANALYSIS.

UM, AND IT'LL BE TOWARDS THE END OF 2022 THAT WE'RE LOOKING TO ACTUALLY START, UM, COMMUNICATING THOSE RESULTS, BUT LIKE, UH, SYDNEY OR MR. JACKSON, UM, COMMUNICATED, I THINK, UH, WE WOULD LIKE TO COME BACK, UH, ONCE WE ENGAGE THE VENDOR AND WE FORMALIZE WHAT THAT TIMELINE IS, UM, THEN, THEN WE CAN, UH, COMMUNICATE WHAT THOSE DATES ARE BECAUSE WE HAVE NOT FORMALIZED THAT YET.

TO NUMBER 11, JEFF, THAT SOUNDS GOOD.

WELL, ANY OTHER QUESTIONS? OKAY.

I GUESS WE'RE MOVING ON

[11. Discussion and possible action regarding recommending that Council extend the 15% CustomerAssistance Program (CAP) discount (Chapman; Hopkins). (Part 1 of 2)]

WE DO HAVE STAFF AVAILABLE AND ALSO JUST A REMINDER.

UM, WE DID SEND IN OUR COMMUNICATION, UH, SOME INFORMATION REGARDING THIS ITEM.

[01:10:02]

IN OTHER WORDS, YES.

JUST A BRIEF COMMENT ON THE LAST ITEM.

UM, IT WAS REALLY GREAT.

UH, JUST WANTED TO SAY THANKS.

UM, IT'S GREAT TO GET THE INFORMATION ABOUT THE NEW SOLAR AND WIND PROJECTS COMING ON.

IT'S GOOD NEWS.

IS THERE ANY DISCUSSION ON 11 OR IS THAT JUST SOMETHING THERE TO MAKE US AWARE, RANDY ISN'T TISSUE OR ITEM? I THINK HE MUST BE ON MUTE.

CAN YOU HEAR ME NOW? YES.

ALL RIGHT.

UM, 11, UH, WHICH IS REFERS TO THE, UH, RIGHT DISCOUNT THAT WE TALKED ABOUT PREVIOUSLY.

UH, ALL OF WHICH IS THE FACT IS, UH, AS WE'VE HEARD ALL KNOW, COVID HAS NOT GONE.

WE HAVE SEEN SKY ROCKETING RENTS AND IN THIS AREA, UH, AND THE DISCOUNT.

UH, AND THANK YOU.

AND THANK YOU, JEFF, FOR PROVIDING THE BACKGROUND ON THAT, THE DISCOUNT OF 15%, UH, EVEN THOUGH IT'S A SMALL NUMBER ON A ACTUAL UTILITY BILL, IT DOES NOT, UH, UH, ON AN INDIVIDUAL'S UTILITY BILL, UH, ADDS UP TO ABOUT $40 A YEAR FOR THE APP RECIPIENT.

UH, SO ALL OF WHICH IS, UH, IT IS MY RECOMMENDATION THAT THE ELECTRIC UTILITY COMMISSION, UH, RECOMMEND TO COUNCIL THAT THE 15% DISCOUNT BE EXTENDED VIA EXTENDED PAST THE CURRENT YEAR AND ARE WELCOME ANY, I WELCOME ANY DISCUSSION, RANDY, THIS IS KAY.

UM, DO YOU HAVE AN END AT AN EVENT THAT WOULD, UH, LEAD TO A RECOMMENDATION OF WHEN IT WOULD END? I DO NOT.

I DID NOT.

I THINK THAT SHOULD BE LOCKED OUT.

MY SUGGESTION WAS NOT TO PUT AN END DATE ON IT, BUT RATHER TO EVALUATE IT AS THE COUNCIL DOES EACH YEAR, WHEN THEY, WHEN THEY, UH, REVIEW THE FEE, IT, OBVIOUSLY, IF THERE'S MORE REVENUE IN, WE KNOW THAT THEY, UH, IF THERE COMES IN MORE FEDERAL FUNDS OR BELL RELIEF, UH, WHICH WE MANY PEOPLE EXPECT, IT MAY NOT BE AS GREAT AS PEOPLE RETURN TO WORK.

SO I WOULD LEAVE IT AS AN OPEN ITEM, BUT, UM, I'D BE HAPPY TO, UH, PUT A DATE ON IT IF YOU PREFER.

I WASN'T, I WASN'T THINKING SO MUCH A DATE AS I WAS THINKING, YOU KNOW, UH, WHEN, UH, UNEMPLOYMENT REACHES A CERTAIN LOW LEVEL OR SOMETHING LONG THAT, OF COURSE, WE'VE ALL BEEN DEALING WITH THIS UNCERTAINTY FOR SO LONG.

NOW THAT IT'S HARD TO IMAGINE WHAT THE REAL END OF THIS ISSUE IS GOING TO BE.

GOOD AFTERNOON, COMMISSIONERS.

YOU KNOW, YOU KNOW, CERTAINLY WITH THE PANDEMIC WE THOUGHT, UH, BEFORE, YOU KNOW, UH, I THINK IT NEEDS TO BE LEFT.

MY SUGGESTION IS THAT IT BE LEFT OPEN BECAUSE, UH, WE, WE DON'T KNOW WHEN IT HITS CERTAIN SEGMENTS MORE, BUT WE KNOW THAT EVERYONE WHO RECEIVES THE DISCOUNT HAS BEEN DETERMINED TO BE INCOME ELIGIBLE AND THEREFORE, AND THEREFORE, UH, IF, IF THE NUMBERS IMPROVE, WE WILL, THERE WILL BE MORE FUNDS AVAILABLE.

IT CAN BE ADJUSTED ANNUALLY AND BE ADJUSTED ANNUALLY, BUT, UH, IN LIGHT OF THE CURRENT SITUATION, UH, IT'S MY RECOMMENDATION THAT IT, UH, NOT BE REDUCED, NOT BE REDUCED AT THIS TIME.

THANKS.

I'D LIKE TO HEAR FROM, THIS IS CARRIE.

UH, I'D LIKE TO HEAR FROM STAFF AND YOU KNOW, HOW MUCH THIS MONEY IS, IS ON A RUN RATE AND HOW AND HOW WE FUND IT, JUST TO MAKE SURE I UNDERSTAND WHAT THE ECONOMICS OF IT ALL ARE AND, AND GET THEIR, YOU KNOW, GET THEIR FEEDBACK ON IT.

MY NAME IS RUSSELL .

I AM THE INTERIM VICE PRESIDENT OF FINANCE.

UM, IF THE,

[01:15:01]

WELL, LET ME, LET ME GIVE YOU A LITTLE BACKGROUND FIRST, AS YOU'RE AWARE, THE, UM, CUSTOMER ASSISTANCE PROGRAM OR CAP IS FUNDED THROUGH THE COMMUNITY BENEFIT CHARGE.

AND THE CURRENT CAP RATE WAS SET IN 2019.

AND AT THAT TIME WE WERE IN AN OVER RECOVERED PERIOD.

SO THAT 2019 RATE WAS, UH, INTENTIONALLY SET BELOW COST RECOVERY.

THAT BEING SAID, UM, UH, AS WE ENTERED INTO THE COVID ERA ERA AND AS, UM, CARRIE OVERTON, UH, PRESENTED, UM, WE DREW ON THAT OVER RECOVERY BALANCE TO ASSIST IN THE PLUS ONE PROGRAM.

AND CONSEQUENTLY RAISE THE CAP DISCOUNT FROM 10% TO 15%.

SO WHAT THAT DID IN EFFECT IS IT ACCELERATED THE DRAW DOWN OF THAT OVER RECOVERY, IF YOU WILL, WHICH KIND OF GETS US TO WHERE WE ARE TODAY.

SO WE ESTIMATE AT THE END OF FISCAL YEAR 21, THAT WE'LL BE STILL BEING AN OVER RECOVERED POSITION OF ABOUT THREE AND A HALF MILLION DOLLARS.

IF, UM, THE CAP RATE IS RAISED TO A 15% DISCOUNT, WHAT WILL HAPPEN IS, UM, WE WOULD NOT NEED A BASE RATE OR WE WOULD NOT NEED A RATE INCREASE IN 22 OR 23 AT THAT OVER RECOVERY WOULD, IS ADEQUATE TO ABSORB THOSE COSTS.

UH, BUT IT WOULD PROBABLY RESULT IN ABOUT A 15% INCREASE IN 23, PROVIDED THAT THE CAP IS COUNT IS BROUGHT BACK DOWN TO 10%.

IF IT'S LEFT AT 15% AT A 15% CAP DISCOUNT MOVING IN FOR 23, THEN THAT RATE INCREASE IN 23 LOOKS MORE LIKE 34%.

SO AT THE POST AND THE FLIP SIDE TO THAT IS IF IT'S LEFT AT 10%, UM, IT'S REASONABLE TO ASSUME THAT THERE WOULD NOT BE ANY RATE IMPACT FOR THE NEXT TWO YEARS.

SO I'M SORRY.

CAN YOU SPECIFY THAT AGAIN? UM, ARE YOU TALKING ABOUT JUST FOR THE CAP OR THE OVERALL BILL OR WHAT ASPECTS OF THE CUSTOMER'S BILL, JUST THE CAP RATE, PARDON ME? JUST THE CAP RATE.

SO NO RATE IMPACT IN 22, IF YOU MOVE TO A CAP DESCENDED OF 15%, THERE'D BE NO RIGHT IMPACT OF 22 IN FISCAL YEAR 22 THIS UPCOMING YEAR, BUT IT PROBABLY WOULD RESULT IN A 15% INCREASE IN FISCAL YEAR 23 BECAUSE WE WOULD, WE WOULD, UH, UM, SPEND OVER RECOVERY AND BE UNDER RECOVERED.

UH, NESA NECESSITATING A, UH, A 15% BASE RATE IN NOT A BASE RATE.

UH, UM, UM, A CAP RATE INCREASED PROVIDED THAT IT DROPPED BACK DOWN TO 10%.

IF IT'S LEFT AT 15% MOVING INTO 23, THAT THAT 15% HAVE INCREASED WITH WOULD TURN INTO ABOUT A 34% CAP RATE INCREASE.

OKAY, WELL, WHEN THERE'S TWO CAP, I'M SEEING ON MY AC BILL COMMUNITY BENEFIT CHARGE, IS THAT WHAT YOU'RE SAYING MIGHT GO UP AT CAP PORTION OF THE COMMUNITY BENEFIT, CHARGED THE COMMUNITY BENEFIT, CHARGE RECOVERS THREE, UH, PASS THROUGHS, SERVICE AREA, LIGHTING CAP, AND ENERGY EFFICIENCY SERVICES.

SO THIS WOULD JUST BE THAT PORTION THAT RECOVERS CAP COSTS ANY IDEA ON HOW MUCH THAT MEANS TO THE BOTTOM LINE AVERAGE BILL.

I MEAN, BECAUSE YOU'RE TAKING A PORTION OF A PORTION.

IF, IF A 15% INCREASE IN THE CAP COST RESULTS IN ABOUT 20 CENTS A MONTH, INCREASE 20 CENTS A MONTH.

UM, EXTENSION LANDED A SONG, UM, AS WE CAN, MAYBE THAT WOULD BE, UM, POSSIBLY TO THE END OF 20, 22 OR SOMETHING ON THAT ORDER.

AND IF IT WERE TO GO, UM, TO, UH, UH, IF THE RIGHTS, IF THE CAP DISCOUNT RIGHT, WAS CAPPED AT 15% MOVING PAST 20, 23 OR 2022, UH, RESULTING IN A 34% RATE INCREASE THAT THAT EQUATES TO ABOUT 45 CENTS A MONTH.

OH, IT DOESN'T SEEM KAREN, DO YOU HAVE A QUESTION? UM, CAN YOU HEAR ME NOW? UM, AND ALSO I WANTED TO LET YOU KNOW THAT, UH, CYRUS REED IS, UM, WANTING TO SAY SOMETHING TOO.

I, UM, WANTED TO SAY THAT I SUPPORT RANDY'S IDEA.

[01:20:01]

UM, THEN WE CAN CONSIDER, YOU KNOW, THAT TO 10 OR WHATEVER, YOU KNOW, A LITTLE LATER DOWN THE LINE, BUT I LIKE THE CONCEPT.

YEAH, THIS IS CYRUS.

CAN YOU HEAR ME? AND WE CAN HEAR YOU CYRUS.

THANKS.

BILL RELIEF, UH, I THINK THAT THE CAP DISCOUNT RETURNS TO 10% IN NOVEMBER.

SORRY.

I WAS HAVING TROUBLE TALKING.

UM, YEAH, I, I SUPPORT THE IDEA OF EXTENDING THE DISCOUNT, BUT I WOULD, I WOULD RECOMMEND WE TO MAKE RECORDS FOR THE END OF FISCAL YEAR 2022.

SO IN OTHER WORDS, THROUGH SEPTEMBER OF 22, UM, AND THEN IT CAN BE REASSESSED AND HOPEFULLY BY THEN, YOU KNOW, THINGS WILL BE A LITTLE BIT, UH, BACK TO NORMAL JUST BECAUSE IT SOUNDED LIKE WE HAVE ENOUGH EXTRA MONEY, THE 3.6 MILLION TO COVER IT THROUGH FISCAL YEAR 20, 22 WITHOUT A BILL IMPACT.

BUT AFTER THAT, IT WOULD, YOU KNOW, IF WE WERE AN EXTENDED MORE THAN THAT, IT COULD, IT COULD BE, UH, UH, YOU KNOW, A SIGNIFICANT INCREASE, UH, ON EVERYONE'S BILLS.

SO I WOULD RECOMMEND JUST MAKING THE RECOMMENDATION THROUGH FISCAL YEAR 22, BUT THAT WOULD BE FINE WITH ME IN TERMS OF A FRIENDLY AMENDMENT AND A QUESTION, RANDY, ARE YOU WANTING THIS TO BE A RESOLUTION, UM, THAT WE RECOMMEND TO COUNCIL AS THE EUC? OKAY.

I WOULD, I WOULD MOVE, UM, WELL, I GUESS WE NEED THE EXACT LANGUAGE, BUT I WOULD SUPPORT THAT.

SO THROUGH SEPTEMBER 20, 22 OR ONE OTHER SUGGESTION WAS MAYBE HACKETT OF BENT BASED LIKE, UH, GOING DOWN TO STAGE TWO OR STAGE ONE OR SOMEONE UNEMPLOYMENT RATE.

UM, IS THERE ANY OTHER ADVICE WE COULD GET FROM FINANCIAL COMMUNITY, AES, OTHER EXECUTIVES ABOUT, YOU KNOW, WHAT MAKES MOST SENSE AS SOME KIND OF EVENT OR A SPECIFIC DATE TYPICALLY SET, UM, PASS THROUGHS DURING THE BUDGET PROCESS AS YOU WELL KNOW? UM, UH, IF THERE IS A TRIGGERING EVENT, IF THAT'S THE DECISION, UH, THAT, THAT THE COMMISSION, UM, INTENDS TO PURSUE, UH, MY RECOMMENDATION WOULD BE THAT, UM, UH, IF, WHEN, IF, AND WHEN THAT, THAT TRIGGERING EVENT HAPPENS, THAT WE, UH, ADJUST ONCE AGAIN AT THE YEAR END, AND IT WOULD BE A PASS THROUGH.

SO AS WE TEND TO OVER COLLECT OR UNDER COLLECTED, AND I THINK ECONOMY GETS BETTER OR GETS WORSE, UM, WE CAN ADJUST FROM THERE.

SO I WOULD LIKE TO REQUEST, UM, THAT I, I WOULD LIKE TO SAY, I WOULD LIKE TO VOTE IN FAVOR OF THIS, BUT UNFORTUNATELY I'M GOING TO HAVE TO HOP OFF.

SO IF YOU CAN RECORD ME IN FAVOR OF THE RESOLUTION, I WOULD PREFER IT THAT WAY.

UM, AND, UM, I'M HAPPY WITH THE DATE OF END OF, UH, SEPTEMBER, 2022.

AND THIS IS KRISHNA TRUSSELL.

I AM ALSO, UH, BECAUSE, UH, THE EVENT, IF THE TRIGGERING EVENT WAS STAGE TWO, WHERE WE ALL KNOW WHAT CAN HAPPEN AFTER YOU REACHED THAT A FEW MONTHS LATER.

SO I'M PERFECTLY HAPPY WITH, UH, RANDY'S ACCEPTANCE OF THE, UM, IDEA OF EXTENDING IT THROUGH FISCAL YEAR 2022, WHICH IS SEPTEMBER 20, 22.

AND THEN NOTE THAT WE, IT WOULD NEED TO BE RE-EVALUATED.

SO JEFF, WOULD IT BE WHERE THERE'S SOME DRAFT TEXT, AND THEN THE NEXT MEETING, WE ACTUALLY HAVE SOMETHING IN WRITING THAT'S MORE COMPLETELY DRAWN AND DRAFTED, AND WE JUST SEND THAT TO COUNCIL.

HOW DO WE WORK THIS ONCE YOU HAVE THE WRITTEN LANGUAGE OR THE AGREED UPON LANGUAGE, UM, WE'LL HANDLE THE MECHANICS OF CRAFT, YOU KNOW, UH, FINALIZING THE RECOMMENDATION AND GETTING IT OVER TO COUNCIL.

SO IF YOU WOULD LIKE TO DO THAT BY THE NEXT MEETING, THAT'S, THAT'S FINE.

IS THERE ANYTHING THAT'S ESSENTIAL IN ACCELERATING THAT OR WHERE YOU HAVE TO MAKE SOME KIND OF DECISION TODAY OR TAKE A VOTE TODAY, OR WILL THAT WORK? THAT'S SCHEDULED GETTING A DRAFTED, UH, THE EXACT TERMS AND THEN JUST HAVING A VOTE NEXT TIME.

YOU'RE IF YOU'RE ASKING ME, UH, I'LL CHECK IN WITH RUSTY, BUT, UH, I BELIEVE THAT CURRENTLY, UH, BASED ON THE EXISTING DECISIONS OF COUNCIL AND THE UTILITY

[01:25:01]

IS THAT CORRECT? RUSTY? YES.

THAT'S THE, THE TARIFFS THAT WERE APPROVED LAST WEEK BY THE CITY COUNCIL HAD 10% IN THEM AND THEY WOULD RETURN TO THAT, TO THAT.

UH, ARE THOSE THOSE, UM, UM, WELL, IN FACT, UH, THE TARIFF LANGUAGE, UH, IF IT'S APPROVED, UM, GOES INTO EFFECT, UH, OCTOBER 1ST AND THERE WOULD BE NO RIGHT CHANGE.

WE'RE NOT PROPOSING ANY RIGHT CHANGE, UM, IN THE CAP RATE, BUT IT W IT, IT, WE'RE NOT TALKING ABOUT A RIGHT CHANGE.

WE'RE TALKING ABOUT THE PERCENT OF DISCOUNT WE'VE BEEN FROM, FROM 15 TO 10 TENS CURRENTLY IN THE PROPOSED TARIFFS THAT WERE APPROVED.

SO RUSTY, IF WE, IF WE PUT THIS OFF FOR A MONTH, UH, ARE WE GOING TO LIST MOOT, LOSE OUR OPPORTUNITY TO HAVE AN INFLUENCE ON CITY COUNCIL'S DECISION? OR, UH, DOES THAT GIVE US PLENTY OF TIME, JEFF? CORRECT ME IF I'M MISTAKEN, BUT I, WE, WE ADD ONGOING IN FRONT OF, UM, UH, UH, CITY COUNCIL AT THE END OF SEPTEMBER FOR, UM, APPROVAL OF PASTORS AND IT COULD BE ADDRESSED AT THAT TIME.

SO IT'LL TURN ON WHEN WE, THE EUC MEETS AGAIN, WHICH HAS BEEN KIND OF A FUN PROCESS OF LIFE.

I'VE GOT A SUGGESTION, RANDY, WHY DON'T YOU JUST WRITE THIS UP? I MEAN, IT'S, IT'S LITERALLY A SENTENCE OR SO, RIGHT.

HAPPY TO HAPPY TO.

AND CAN WE CIRCULATE, I AT LEAST GOT WORD TO COUNCIL, UH, BEFORE WE MADE A GUN.

NO, NO.

WHAT I WAS SUGGESTING IS DO IT RIGHT NOW OVER THE NEXT TWO OR THREE MINUTES AND READ IT TO US.

AND IF EVERYBODY SIGNS OFF ON IT, WE CAN GET IT OUT.

I WILL WORK.

WE SHOULD DO IT NOW.

WE SHOULD DO IT NOW, BECAUSE NOW IS THE TIME.

IF THAT'S THE CASE I HAVE IN MY NOTES THAT YOUR HAVE A RECOMMENDATION THAT COUNCIL, UM, EXTEND THE 15% CAP DISCOUNT THROUGH FISCAL, THE END OF FISCAL YEAR 2022.

CORRECT.

THAT'S ONE SENTENCE.

I THINK WE CAN GET THAT IN, IN BRANDY'S WORDING IN AND JUST APPROVE IT RIGHT NOW.

I'LL SECOND.

THAT MOTION.

DID BRANDY MAKE IT? YES.

THAT'S.

THAT'S THE MOTION.

WHAT JEFF? JUST READ.

I'LL I'LL BACK THAT MOTION.

DID KAREN ALREADY DROPPED OFF OR DO WE HAVE, SHE DID WELL, SHE VOICED SUPPORT FOR IT.

SO FOR HIM, YOU HAVE A QUORUM REGARDLESS, CURRENTLY CHAIR, BUT I DO BEFORE YOU TAKE THE VOTE, CAN I JUST, UH, I JUST WANT TO MAKE SURE THAT STAFF WAS CLEAR THAT WE ARE CURRENTLY IN AN UNDER RECOVERING POSITION AND THEREFORE AN INCREASE IS GOING TO BE REQUIRED, REGARDLESS, AT LEAST I THINK THAT'S THE CASE, CORRECT? RUSTY.

YES, THAT'S CORRECT.

THE CURRENT RATE IS UNDER RECOVERY COSTS AND, UM, UH, AND THE 15%, UH, INCREASE IN THE CAP DISCOUNT WILL MORE THAN LIKELY INCREASE, UM, THE CAP RATE NEXT YEAR IN 2023.

THE DELTA, THERE WOULD BE GOING FROM 20 CENTS A MONTH TO 45 CENTS A MONTH ON THE AVERAGE BILL.

YES, NO, FROM ZERO TO 20.

PROVIDED THAT, THAT THE CAP DISCOUNT DROP THAT'S BACK DOWN TO 10% IN 20, 23.

BASED ON THE PROPOSAL THAT WE'RE MAKING, IT WOULD DROP AND AUTOMATICALLY DROP AGAIN, UNLESS RE UH, REAUTHORIZED BY CITY COUNCIL.

SO WE'RE TALKING ABOUT A 26.

ON AN, ON AN AVERAGE CUSTOMER'S BILL, CORRECT? OUR AVERAGE BILL AVERAGE RESIDENTIAL BILL.

AND THAT WOULD OCCUR IN 2023.

MA'AM.

AND WOULD HAVE TO BE SUBJECT TO APPROVAL THAT RATE, THAT, THAT RATE IS THAT RIGHT? DO I UNDERSTAND IT CORRECTLY? THE COUNCIL WOULD HAVE TO APPROVE THAT 20 CENT AVERAGE INCREASE IN TIME.

ANY, ANY CHANGES TO THE PASS-THROUGHS WOULD HAVE TO BE APPROVED BY CITY COUNCIL.

I CAN, I'M COMFORTABLE WITH THAT.

[01:30:01]

SO, AND I THINK WE HAVE THE WORDING.

WHY DON'T WE TAKE A VOTE? YES, LET'S.

DO WE HAVE A FIRST MAKE A MOTION TO REEL BACK A SECOND? WE HAVE A MOTION AND A SECOND.

THEN ALL WHO AGREES? AYE.

AYE.

ERICA, I COULDN'T HEAR YOU.

IS THAT OKAY? THAT SHE SAID YES BEFOREHAND? WELL, IT'S NOT EXACTLY ROBERT ROLLS, BUT UH, SURE.

YOU ALL SEEM TO ALL BE IN AGREEMENT, SO, OKAY.

SO DON'T WORRY ABOUT THE HOPES TO PASS THAT.

I WISH THAT ERIC COULD IN FACT PIPE UP AS WHAT I WOULD PREFER.

WHY DON'T WE COME BACK AND REVISIT JUST FOR GRANTS THE VOTE.

ON TO 12 AND THEN WE'LL COME BACK.

WELL, LET'S SEE, WE'VE GOT TWO MORE ITEMS, RIGHT? THAT'S WHAT I MEAN.

LET'S, LET'S SEE IF WE CAN GET BACK TO HERE.

THERE YOU GO.

SEND HIM A TEXT AND TELL HIM TO PICK UP.

WILL DO JEFF, DID YOU WANT TO TALK ABOUT WITH MOVING

[12. Discussion regarding location of future EUC meetings]

THAT'D BE GREAT.

ITEM 12.

Y'ALL HAVE POSTED A DISCUSSION REGARDING THE LOCATION OF THE UC MEETINGS.

AND I JUST WANTED TO TAKE A MOMENT TO CERTAINLY PRESENT STAFF'S, UM, INTERPRETATION, WHICH IS THAT OUR NEW HEADQUARTERS IS GOING TO BE FULLY FUNCTIONING IN SEPTEMBER.

AND IT WAS DESIGNED WITH THE FULL INTENT TO BE HOSTING THE ELECTRIC UTILITY AND RESOURCE MANAGEMENT COMMISSION MEETINGS, AND PROBABLY, UH, EXPANDING TO OTHER COMMISSIONS LIKE THE MUELLER COMMISSION.

UM, I ALSO WANTED TO LET THE COMMISSION KNOW THAT WE HEARD FROM THE CITY CLERK'S OFFICE, THAT THE GOVERNOR HAS NOT EXTENDED THE WAIVER OF THE OPEN MEETINGS ACT, UH, PROVISIONS.

AND THEREFORE BEGINNING IN SEPTEMBER, WE ARE EXPECTED TO BE MEETING IN PERSON.

AND, UM, THAT INCLUDES OF COURSE, UH, YOU KNOW, CITIZENS, IF THEY INTEND TO BE SPEAKING AND THAT SORT OF THING.

AND SO, UH, THE CHAIR AND I DISCUSSED THAT AND, AND, UM, WE INFORMED THE CLERK'S OFFICE THAT WE WOULD BE ATTEMPTING TO RETURN TO OUR, UH, NORMAL DATES THAT WERE ON OUR SCHEDULE.

SO THAT WOULD BE THE SECOND MONDAYS OF EACH MONTH.

AND, UM, AND THEN OF COURSE WE'LL BE COORDINATING WITH ATX EN TO ENSURE THAT THE MEETINGS ARE BEING RECORDED AND, UH, YOU KNOW, IN COMPLIANCE WITH OUR RECORDS MANAGEMENT EFFORTS AS WELL.

SO I JUST WANTED TO GIVE YOU ALL THAT BRIEFING.

UM, OBVIOUSLY, UH, FROM STAFF'S PERSPECTIVE THESE DAYS, WE, WE HAVE, UH, A MASKING REQUIREMENT RIGHT NOW.

SO, UH, WE'LL BE DOING SOCIAL DISTANCING AS BEST WE CAN IN TERMS OF THE SETUP AND ARRANGEMENT.

AND, UM, AND FRANKLY WE'LL ALSO BE SLATED TO HAVE, UH, THE HEADQUARTERS BRIEFING THAT, UH, COMMISSIONER HADN'T HAD THE UPDATE THAT SHE HAD REQUESTED ON THE SEPTEMBER MEETING.

SO, UH, THE SEPTEMBER 13TH IS CURRENTLY YOUR DATE.

THE ONLY THING THAT WE DIDN'T SETTLE UPON, UH, TALKING WITH MARTY IS THAT OF LATE, WE'VE BEEN HOLDING THESE AT FIVE 30.

UM, AND WE JUST WANTED Y'ALL TO ALSO DISCUSS, YOU KNOW, WOULD YOU LIKE TO STAY AT THAT TIME, OR DO YOU WANT TO GO TO SIX O'CLOCK, WHICH IS YOUR OLD MEETING TIME FROM STAFF'S PERSPECTIVE? OF COURSE, YOU KNOW, WE CERTAINLY PREFER THE EARLIER TIME, BUT, UH, AND WITH ALL THE STAFF BEING PRESENT AND BEING ABLE TO COME DOWN AND DO THEIR PRESENTATIONS AS WELL, WE DO HOPE THAT YOU'LL, YOU'LL UTILIZE THIS WONDERFUL INVESTMENT THAT WE'VE MADE, UH, OVER IN THE MUELLER NEIGHBORHOOD.

THAT'S ALL CHAIR.

SO THE ALTERNATIVES ARE FIVE 30 OR 6:00 PM.

YOU'RE SAYING JEFF OR EARLIER.

I MEAN, IT'S UP TO US.

I MENTIONED THAT IN THE PAST WE'VE DISCUSSED THIS.

WELL, WHAT ABOUT DISCUSSION ON THAT? WELL, I WOULD JUST, THIS IS CARRIE.

[01:35:01]

AND ONE OF THE THINGS THAT BECAME PRETTY CLEAR IS THAT IT REAL WORK AND PEOPLE WHO HAVE THE JOBS THAT THEY HAVE TO SHOW UP TO HAVE A HARD TIME SHOWING UP AT FIVE OR FIVE 30.

UM, SO, YOU KNOW, THAT'S AN, THAT'S AN ISSUE WE GOT TO THINK ABOUT.

UM, YOU KNOW, HONESTLY, DOESN'T MATTER TO ME THAT MY JOB I'VE GOT PRETTY FREE SCHEDULE, BUT, UH, BUT THAT MIGHT BE AN ISSUE FOR OTHER PEOPLE, OTHER COMMENTS, UM, IT, I I'M, I'M A RETIRED PERSON, SO THAT DOESN'T MATTER.

BUT IF WE ARE GOING TO MUELLER, I PROBABLY HAVE AT LEAST AN HOUR TO AN HOUR AND A HALF COMMUTE FROM WHERE I AM.

AND IF IT'S, SO THE TIME OF DAY MATTERS, YOU KNOW, UH, BECAUSE I'LL GET RIGHT IN THE MIDDLE OF RUSH HOUR, JUST THAT'S, THAT'S, THAT'S MY PERSPECTIVE.

SO WHAT DOES THAT MEAN FOR YOUR PREFERENCE? UM, IT MEANS THAT, UH, I MEAN, I PROBABLY HAVE AN HOUR COMMUTE IF WE STAYED DOWNTOWN JUST BASED ON PRE PANDEMIC COMMUTING TOWARDS DOWNTOWN THAT USUALLY WE TAKE AN HOUR TO GET INTO DOWNTOWN.

SO I, I WILL DO WHATEVER THE WILL OF THE REST OF THE CONDITION IS.

BUT MY BIGGEST ISSUE BEFORE JUST GETTING FROM UT DALLAS, IT WAS GETTING ACROSS THE BRIDGES.

THE STAFF THAT NEED TO BE THERE, WE'LL BE THERE.

EVEN AT SIX O'CLOCK.

SO I JUST DON'T HAVE A GOOD FEEL FOR WHAT IS RUSH HOUR TRAFFIC NOW BETWEEN FOUR 30 AND SIX, I'VE HEARD IN LIKE, UH, IN MID JULY THAT AUSTIN FOR EPIC TERM RETURNED TO 90% OF ITS PRE PANDEMIC LEVELS, ACCORDING TO, BUT I DO THINK, I DID THINK THE MUELLER LOCATION WOULD BE MUCH EASIER BECAUSE YOU CAN USE, YOU KNOW, AIRPORT BOULEVARD AND 51ST STREET OR, UH, SPRINGDALE, OR ONE OF THE THREE THERE'S MORE OPTIONS.

WHEREAS WHEN IT WAS DOWNTOWN, IT WAS, YOU KNOW, IN RUSH HOUR, IT WAS VERY DIFFICULT.

UM, I THINK IT WILL BE EASIER.

WELL, I PROBABLY AM COMING FROM THE FARTHEST SOUTH OF ANY OF YOU.

SO I'M PRACTICALLY TO 1826 OUT HERE OFF OF THE OPAC AND 45.

BUT AS I SAID, THAT'S THE OTHER BENEFIT OF RETIREMENT.

I CAN JUST START OUT AT THREE O'CLOCK IN THE AFTERNOON AND SEE WHEN I GET THERE.

WELL, IT'S JUST DIFFICULT TO UNDERSTAND THE TRAFFIC PATTERNS, JEFF, IS IT, IS IT HARD TO MODIFY IT OR MORE TIME? AND THEN IF WE FIND OUT THE TRAFFIC IS ACTUALLY BETTER AT FIVE 30 AND IS BETTER FOR THE STAFF OR WHATEVER, WE CAN MOVE IT, OR HOW SET IN STONE IS THIS.

ONCE WE GET BACK, YEAH, WE CAN DO IT AT SIX AND YOU CAN MODIFY IT TO THE EARLIER TIME, IF YOU SO CHOOSE STAFF WOULD CERTAINLY REQUEST THAT WE NOT MOVE IT LATER THAN SIX.

IS IT POSSIBLE TO ROTATE IT FROM ROTATE? IT, THAT IT BE AT THE NEW LOCATION EVERY OTHER MONTH THEN DOWN AND DOWNTOWN OR CITY HALL? THE COMMISSIONER, ALL I CAN SAY IS WE'VE JUST INVESTED TENS OF MILLIONS OF DOLLARS IN A NEW FACILITY.

AND, AND WE HAD EVERY INTENTION THAT COMMISSION MEETINGS WOULD BE HELD AT THAT SITE.

AND THAT LIKE PREVIOUSLY THE TOWN LIKE CENTER WAS A, ANOTHER AVENUE FOR THESE TYPES OF COMMUNITY MEETINGS.

AND, UM, THAT, THAT HAS CERTAINLY BEEN OUR INTENT ROTATING MEANS THAT WE WOULD, WE WOULD HAVE LOGISTICAL CHALLENGES.

I'M NOT SAYING IT.

WE WOULD HAVE LOGISTICAL CHALLENGES THAT THE CLERK'S OFFICE ALREADY HAS IN MANAGING THE 60 PLUS BOARDS AND COMMISSIONS THAT THE CITY COUNCIL HAS IN PLACE.

THAT'S WHAT I WOULD SAY.

CORRECT.

GOOD POINT.

I, YOU KNOW, I'M WITH I'M WITH KAIA IS, IS GOING TO BE, UH, MORE TIME ON THE ROAD, BUT, UH, WE SHOULD TAKE ADVANTAGE OF THE NEW FACILITY.

AND I HAVE A QUESTION, JEFF, UM, ARE YOU TELLING ME THAT BY THE TIME WE WOULD MEET THE, ALL OF THE AEC STAFF WOULD BE IN THE NEW BUILDING, WE HAVE OUR, UH, WORKPLACE READINESS UNDERWAY.

WE HAVE BEEN MOVING STAFF AND THEIR MATERIALS OVER.

AND IF I RECALL, UM, SEPTEMBER 9TH WAS OUR PLANNED, UM, YOU KNOW, FULLY OPERATIONAL DATE.

I'M NOT SAYING THAT EVERY STAFF PERSON WILL BE PRESENT, BUT AT A MEETING,

[01:40:01]

SO I HAVE ONE OTHER QUESTION, AND THIS IS JUST PERSONAL.

I THINK TO ME, I WAS APPOINTED TO THIS COMMISSION AT THE VERY BEGINNING OF THE PANDEMIC.

SO I'VE NEVER DONE ANYTHING THAT APPEAR VIRTUALLY.

AND I DON'T REMEMBER THE OPEN MEETINGS ACT WELL ENOUGH TO, TO, TO KNOW THE ANSWER.

SO I'M GOING TO ASK YOU THIS QUESTION, DEATH, AND IT IS THIS ONCE WE RETURNED TO MEETING IN PERSON, IS THERE A PROVISION THAT ALLOWS A COMMISSIONER, IF NOT DEPRIVING THE REST OF A QUORUM TO APPEAR ON THE PHONE OR WHATEVER.

IN OTHER WORDS, IF I'M OUT OF TOWN AND I PHONE IT IN MY UNDERSTANDING IS THAT TRADITIONALLY THAT'S NOT THE CASE.

I DO KNOW THAT THE CLERK'S OFFICE IS GOING TO BE EXPLORING AN ATTEMPT AT A HYBRID MEETING.

I DON'T KNOW THAT WE WILL HAVE THAT SAME OPTION.

UM, AND DON'T KNOW HOW MANY COMMISSIONS, IF ANY, ARE GOING TO GET TO DO THAT, THAT WOULD REQUIRE THAT THE QUORUM BE IN PLACE IN PERSON THAT SPEAKERS CITIZENS WOULD HAVE TO BE IN PLACE.

YOU'RE YOU'RE RIGHT.

THAT, UH, IN THEORY, ONE OR TWO COMMISSION, YOU KNOW, SEVERAL COMMISSIONERS MIGHT, COULD CALL IN MIKE, THE QUESTION REALLY IS, IS IT A PERMISSIBLE UNDER THE OPEN MEETINGS ACT? I WILL, UH, DOUBLE CHECK ON THAT, BUT AGAIN, RIGHT.

WELL, I CAN DO MY OWN RESEARCH.

GIVE ME YOUR, YOU KNOW, I'M KEEP GOING ON THAT.

I'D APPRECIATE IT.

SO LET'S SAY THAT WE'RE GOING TO THE NEW HEADQUARTERS.

JEFF HAS A QUESTION TO GET ANSWERED ABOUT DUKE.

CAN WE HAVE CALL-INS OR WOULD WE HAVE VIDEO SUPPORT LIKE THIS WHERE IT'S NOT REALLY A COLLIN, WELL, CYRUS IS DOING IT, BUT A VIDEO IN MAYBE THERE'S DIFFERENT LEVELS OF IT.

UM, AND THEN WE'RE TALKING ABOUT MAYBE FIVE 30 OR SIX O'CLOCK NO LATER THAN SIX O'CLOCK.

DOES THAT NARROW DOWN THE SCOPE OF WHAT WE'RE DISCUSSION I'LL TAKE IN ALL THAT DISCUSSION.

AND, UM, I THINK WHAT WE'LL DO IS SCHEDULE THE NEXT MEETING FOR SOUNDS LIKE SIX O'CLOCK.

IF I UNDERSTOOD THAT TO BE THE SORT OF THE WILL AND, UM, UH, DON'T W WE WILL NOT HAVE THIS KIND OF VIDEO HYBRID ACCESS.

DAVE, I CAN ANSWER THAT STRAIGHT UPFRONT.

UM, AT LEAST NOT IN SEPTEMBER, PERHAPS, YOU KNOW, SOMEWHERE DOWN THE LINE, BUT, UH, IF THE WORLD CONTINUES TO CHANGE, OKAY.

IT'S LIKE WE HAD TO OUR FIRST MEETING TOGETHER AGAIN IN SEPTEMBER AT THE NEW HEADQUARTERS AT SIX O'CLOCK.

THAT, IF YOU WOULD LIKE I CAN READ OFF, UM, THE PROJECTED FUTURE AGENDA ITEMS, PLEASE, DO WE STILL HAVE THAT WHEN APPLICABLE, WE'LL PROVIDE YOU AN UPDATE REGARDING THE RENEWABLES AND STORAGE RFP.

EVERYBODY STAY HEALTHY UNTIL THEN.

ABSOLUTELY.

AND NOW IF I COULD, ERIC, UH, IS IT POSSIBLE THAT YOU COULD UNMUTE YOURSELF AND, UM, TAKE A VOTE ON THE EARLIER RECOMMENDATION? ERIC, ARE YOU ON? I SHOWED THAT HE JUST UN-MUTED, BUT I DON'T HEAR ANYTHING THEN IF THAT'S THE SITUATION, I REALLY HAVE TO SAY, UM, I'M UNCOMFORTABLE WITH THE NOTION OF COUNTING A VOTE THAT TOOK PLACE PRIOR TO THE MOTION ACTUALLY BEING IN PLACE.

I I'M JUST SAYING AS, AS YOUR LIAISON, THAT'S MY RECOMMENDATION.

ERIC TEXTED THAT HE'S TRYING TO SPEAK.

I DON'T KNOW WHAT HAPPENED TO HIS WELL, IF HE CAN TEXT YOU, THEN LET HIM TEXT YOU HIS VOTE AND WE'LL, WE'LL LET YOU SPEAK FOR HIM.

AND I WAS FOR A COMPROMISE.

THAT SOUNDS GOOD, JEFF.

AND WHILE HE'S DOING

[14. Future agenda items.]

THAT WAS SOMETHING THAT CYRUS HAD REQUESTED.

COMMISSIONER STONE HAD ASKED TO PROVIDE THE DISTRIBUTION LINE CLEARANCE RULEMAKING OUTCOME.

WE'LL DO THAT.

UM, COMMISSIONER HADN'T HAD ASKED FOR HEADQUARTERS UPDATE, WE'RE SLATED FOR THAT IN SEPTEMBER.

AND NOW SHE HAS ASKED FOR NATURAL GAS SUPPLY CONTRACTS, WINTERIZATION REQUIREMENT, WE'LL TRY AND ADDRESS THAT NEXT MONTH

[01:45:01]

AS WELL.

UH, COMMISSIONER TUTTLE HAS,

[13. Report regarding City Council action on items previously reviewed by the EUC ]

UH, HAS SEVERAL ITEMS. I'LL TRY AND GO THROUGH THEM, UH, STILL IN PLACE, OUR DISTRIBUTION SYSTEM UPGRADE PLANS, WHICH INCLUDES FOR EXAMPLE, SEXUALIZATION PLAN OR USING AMI METERS FOR MORE GRANULAR ROLLING BLACKOUTS OR ANY OTHER CAPITAL IMPROVEMENTS THAT WILL HELP RESILIENCY AND RELIABILITY AND ACHIEVE SAFETY, SAFETY GOALS.

SECONDLY, TRANSMISSION INVESTMENT PLAN UPDATE, WHICH MAY COME LATER IN THE YEAR, THE URI AFTER ACTION REPORT, OF COURSE, WHEN COMPLETE, AND THEN A FOLLOW UP REGARDING THE CODES THAT INCLUDES, UH, THE EMV READY, ET CETERA, THAT IS TARGETED FOR NEXT MONTH AS WELL.

THAT WOULD BE KURT STOCKDALE COMING BACK FOR AN ADDITIONAL UPDATE.

THAT'S WHAT YOU CURRENTLY HAVE.

AND I THINK ONE OF THE OTHER COMMISSIONERS MENTIONED TO ME, MAYBE SOME FOLLOW-UP ON, LET ME GET MORE FINAL RESOLUTION OF THE, OF THE FINANCIAL IMPACT OF URI, OR IS THAT REALLY SETTLED THAT 49 MILLION? IT'S JUST A MATTER OF GETTING PAID.

I'M SORRY.

UH, VICE CHAIR.

WOULD YOU REPEAT THAT AGAIN? YEAH.

SO I THOUGHT STEPHANIE HAD SAID THAT THERE WAS 49 MILLION THAT WAS OWED AND IT WAS JUST A MATTER OF BEING PAID.

CARRIE CARRIE HAD MENTIONED TO ME IN A PREVIOUS CONVERSATION SOMETIME IN THE LAST FEW WEEKS ABOUT GETTING A REVIEW OR JUST AN UPDATE ON THE FINAL FINANCIAL SITUATION.

SO DO WE REALLY HAVE THAT ANSWER? IT'S 49 MILLION.

IT'S JUST A COUNSELOR, SINGLE SINGABLE.

AND, UH, HE JUST NEEDS TO BE PAID OR IS THERE ANY MORE, BETTER FINANCIAL IMPLICATIONS FROM THE STORM? UH, ACTUALLY, UH, UM, DAVE, I, I BELIEVE IT'S MORE THAN 49 MILLION.

IT'S JUST, THAT'S THE, THAT IS, IS STILL OUTSTANDING, UH, AND EXPECTS TO BE PAID WHEN THE, UM, WHEN THE LEGISLATION IS, IS FULLY PERFORMED.

I THINK IT CAME OUT TO MORE LIKE 115 SOMETHING AND PART OF IT'S BEEN SETTLED IN PART OF IT HAS.

SO WAS THAT ALREADY PRESENTED TO THE COUNCIL? WE JUST MAYBE JUST GET THE SAME UPDATE.

NO, I, I THINK WE GOT IT, UH, IN, IN THE PRESENTATION TONIGHT, BUT MY UNDERSTANDING IS IT'S PROBABLY NOT BEEN FINALLY SETTLED THROUGH ERCOT AND IT WOULD PROBABLY BE GOOD TO GET JUST ANOTHER PASS BY ON THAT, ON THE, THE FINAL, THE FINAL FINANCIAL IMPACT FOR AAE OF URI.

LET'S JUST ADD THAT TO THE AGENDA.

I THINK THAT'S A ONE SENTENCE ANSWER, HOPEFULLY.

I'M SORRY.

I GUESS I MISSED IT IN THE CHARTS THAT WERE PRESENTED ABOUT A HUNDRED AND SOMETHING VERSUS THE 54 THAT WE'D HEARD BEFORE IT WAS IN THE, UH, IN THE, UH, ORAL PRESENTATION.

SO IF I UNDERSTOOD COMMISSIONER TROSTLE THAT YOU SAID THE FINAL FINANCIAL IMPACT OF URI, IS THAT WHAT I UNDERSTOOD? WHAT I UNDERSTOOD.