Nov 08, 2021 Electric Utility Commission

MY ALARM WASN'T VERY LOUD.

OUR NEXT SPEAKER IS DANNY.

DANNY .

THANK YOU, DAN.

YOU'LL HAVE THREE MINUTES.

UM, UH, MY NAME IS DANNY AND I'M A ACTIVE MEMBER OF THREE 50 LCRA.

AND WE'VE GOT TO GET CLEAR ON WHAT WE'RE DEALING WITH.

LCRA IS A CLIMATE CRIMINAL AND AUSTIN IS AN ACCESSORY ACCESSORY TO THE CRIMES AND THAT HAS TO STOP.

AND THE FOLKS IN THIS ROOM SHOULD BE ABLE TO GO BACK TO THEIR CITY COUNCIL FOLKS AND TELL THEM THERE'S A PROBLEM WHERE LCRA IS AN ACTUAL CRIMINAL LCA.

THERE'S BEEN SOME TALK THAT THERE'S NOTHING WE CAN DO BECAUSE OF THE CONTRACTS THAT WERE SIGNED BETWEEN LCRA AND AUSTIN ENERGY.

WELL, IF YOU LOOK AT THOSE CONTRACTS CAREFULLY, THERE'S NOTHING IN THE CONTRACTS THAT PREVENTS AUSTIN FROM CLEANING UP POISON, AND LET'S BE CLEAR, COAL ASH IS POISON.

NOBODY WOULD LIKE IT ON THE LAND HERE, POISONING OUR KIDS.

BUT FOR SOME REASON, THE CITY COUNCIL OF AUSTIN REFUSES TO TAKE RESPONSIBILITY FOR POISONING PEOPLE AND LIKE RANGE AND THE WAY THE WATER TABLE FLOWS IN COLUMBUS AND IN WHARTON, THE LCRA.

AND WE SHOULD BE CLEAR ON THAT, THAT THE LCA CONTRACTS DOES NOT PREVENT THE CITY OF AUSTIN TO TEST PEOPLE IN FAYETTE COUNTY, COLORADO COUNTY, OR WHARTON COUNTY FOR LEAD MERCURY AND ARSENIC, WHICH ARE EXTREMELY DANGEROUS.

THERE'S NOTHING THAT PREVENTS THE CITY OF AUSTIN FROM TAKING ACTION, REGARDLESS OF WHAT AUSTIN ENERGY LAWYERS SETTING.

THEY'VE GOT TO STOP DEFENDING LCRA AND START DEFENDING THE CITIZENS OF AUSTIN WHO CLEARLY DO NOT WANT US POISONING THE CITIZENS IN THE OTHER COUNTIES.

THE CLIMATE CRIMINALS IN LCRA IS SPREADING CANCER IN THOSE COMMUNITIES THAT CANCER IS EATING AWAY AT THE BODIES.

I MEAN, WE SHOULD BE CLEAR ON THIS THERE'S BLOCKS IN LAGRANGE, WHERE EVERY HOUSE HAS SOMEBODY WITH CANCER AND SOME OF YOU ARE NOT FAMILIAR WITH CANCER AND WHAT COAL ASH CAN DO, BUT YOU HAVE A RESPONSIBILITY TO LEARN SOMETHING ABOUT THAT.

LCRA IS ALSO PUTTING CARBON INTO THE AIR.

THAT'S KILLING OUR PLANET.

ONE SEVENTH OF ALL OF THE UNITED STATES, CARBON IS PRODUCED IN TEXAS AND THE FAYETTE PLANT, WHICH THE CITY OF AUSTIN, A THIRD OF IS ONE OF THE LARGEST CONTRIBUTORS TO CARBON IN THE AIR.

WE'RE ASKING YOU TO DO A COUPLE OF THINGS.

WELL, ACTUALLY FOUR THINGS, ONE STOP HELPING LCRA CLIMATE CRIMINALS.

THEY SHOULD NOT BE THE AGENDA ITEMS SHOULD NOT BE TO PREVENT FROM EMBARRASSING THEM.

WE SHOULD STOP HELPING THEM.

WE SHOULD START THE TESTING IMMEDIATELY FOR THE CITIZENS IN FAYETTE, IN COLUMBUS AND MORTON FOR LEAD MERCURY AND ARSENIC.

THEIR KIDS MATTERED TO THOSE FOLKS.

JUST AS MUCH AS OUR KIDS MATTERED TO US.

THE THIRD THING IS WE SHOULD START THE CLEANUP OF COAL ASH AND COAL ASH IS STILL ON THE LAND THERE AND VERY IN 48 FOOT PENCE WITH A VERY THIN LAYER OF CLAY THEN CRACKS BECAUSE OF THE LEVEL OF MOISTURE INCREASES AND DECREASES.

AND IT GOES RIGHT DOWN INTO THE WATER TABLE AND POISONS THE OTHER COMMUNITIES.

I'M SO SORRY,

[00:10:01]

UH, COULD YOU, COULD YOU MAKE YOUR FOURTH POINT PLEASE? OKAY.

NUMBER FOUR IS WE SHOULD.

AND I THINK SOME OF YOU ALREADY AGREE WITH THAT.

WE SHOULD START ADVOCATING FOR A SOLAR PLANT TO BE BUILT ON THAT LAND PERIOD, AND THAT CAN START TO REPLACE THAT.

AND I'M SORRY FOR OVER GOVERNOR, I ACTUALLY TIMED MYSELF WHEN I CAME IN AT ONE MINUTE, TIME OPERATES DIFFERENTLY HERE AT THE HEADQUARTERS.

MY NEXT SPEAKER IS MR. MATT WELDON, FORMER COMMISSIONER WELLBEING SO MUCH.

UH, THANK YOU.

SO, UH, I WAS PROMPTED TO COME THIS EVENING, OF COURSE, BECAUSE OF THE SURPRISING AND DISAPPOINTING TOPIC, UH, OF, OF THE POWER PLANT AND, UH, THE INABILITY TO COME TO TERMS THAT WOULD ALLOW AUSTIN TO CLOSE ITS PORTION OF INTEREST.

SO I HAD THREE THINGS I WANTED TO TOUCH ON THE FIRST IS THE GOOD I'VE READ AHEAD IN THE GEN THE AGENDA, I'VE READ THE RESOLUTION AND IF GIVEN THE, ARE THE EXISTING STARTING POINT, UH, THAT THAT IS A GOOD, THOSE ARE ALL GOOD TOPICS.

AND THE ONLY THING I CAN URGE YOU IS TO THINK AMBITIOUSLY, UH, BECAUSE WE OFTEN CONSTRAIN OURSELVES MORE THAN IS ACTUALLY NEEDED.

UM, WE, UH, AS YOU ALL KNOW, I'M, I WILL ADMIT TO BEING VERY PRIDEFUL ABOUT THE REACH PROGRAM.

UH, AND IT'S GETTING A LOT OF ATTENTION NOW AS A LINE ITEM MEANT TO CLOSE THE GAP.

AND I THINK THAT I WOULD JUST WANT TO SAY, WE ARE ASKING A LOT OF IT.

UM, BUT I THINK IT'S IMPORTANT WHAT REACH REVEALS ABOUT OUR ENERGY MARKET AND THE BENEFITS THAT IT BRINGS TO TEXAS.

SPECIFICALLY, IF WE WERE TALKING ABOUT IMPLEMENTING REACH AT THE STATE LEVEL, I WOULD EVEN PROBABLY GO SO FAR AS TO ARGUE IN KEEPING THE FAYETTE POWER PLANT OPEN, BUT WE ARE NOT TALKING ABOUT THAT.

THAT IS NOT ON THE TABLE.

AND I WILL JUST ADD TO THE PRIOR COMMENTS AND NOTE THAT THE NATIONAL ACADEMY OF SCIENCES ABOUT A DECADE AGO, PUBLISHED A PAPER, TALKING ABOUT THE HEALTH IMPACTS OF COAL FIRED POWER AND QUESTIONED WHETHER IT WAS A NET VALUE PROPOSITION, MEANING THAT THE GENERAL HEALTH EFFECTS OR RACE, ANY VALUE OF POWER GENERATE FROM COAL.

SO THAT, LIKE I SAID, IT WAS A DECADE AGO FROM THE NATIONAL ACADEMY OF SCIENCE IS TALKING ABOUT COAL IN GENERAL.

AND THEN THE LAST TOPIC IS SECRECY AND CONCEALMENT.

AUSTIN ENERGY IS OUR BELOVED MUNICIPAL ELECTRIC UTILITY.

UH, THE LCRA LCRA IS A NON-PAR PROFIT PUBLIC UTILITY, AND I'LL QUOTE WHAT THEIR PURPOSE IS THERE TO PROVIDE PUBLIC POWER, MANAGE THE LOWER COLORADO RIVER BUILD AND OPERATE TRANSMISSION LINES ACROSS THE STATE LRS CRA'S MISSION IS TO ENHANCE THE QUALITY OF LIFE FOR THE TEXANS WE SERVE THROUGH WATER STEWARDSHIP, ENERGY AND COMMUNITY SERVICE THAT IS FROM THEIR WEBSITE.

SO I JUST WANT TO SAY, I AM OFFENDED BY THE, THE LOGIC SAYS IT'S TOLERABLE TO COME TO A NEGOTIATION IMPASSE BETWEEN TWO PUBLIC ENTITIES AND CLAIM THAT THERE IS A COMPETITIVE INTEREST THAT JUSTIFIES KEEPING THE CAUSE OF THE IMPASSE A SECRET.

IF THERE'S A PARTY THAT BENEFITS FROM THE SECRET.

SEE, I WOULD ASK YOU TO PLEASE NAME IT AND EXPLAIN THE BENEFIT.

IT CAN'T BE AUSTIN ENERGY.

WE DIDN'T GET WHAT WE WANTED.

WE DIDN'T GET ANYTHING.

UH, THERE'S ONLY ONE ENTITY ON EARTH THAT KNOWS MORE ABOUT THE FIT POWER PLANT THAN AUSTIN ENERGY.

AND THAT IS THE LCRA.

SO WE'RE NOT HOLDING ANY INFORMATION BACK FROM THEM.

AND SO I WOULD JUST SAY THAT AUSTIN ENERGY BENEFITS FROM OPENNESS, WE ARE HERE TO ENGAGE IN DISCUSSION AND LEARN WHAT THE PUBLIC BENEFITS ARE.

AND I'M JUST ASKING YOU TO GIVE THE PUBLIC AND OPPORTUNITY TO SUPPORT YOUR EFFORTS WITH CLARITY AND INFORMATION.

THANK YOU VERY MUCH.

THANK YOU, MR. SPEAKER IS BECKY HELPING US HELPING YOU HAVE THREE MINUTES.

WELCOME BACK TO THE EOC MEETINGS LIVE.

WELL, I AM VERY DISAPPOINTED AND SADDENED THAT COME TO THIS DAY WHEN AFTER YEARS AND YEARS OF WORK PUT IN BY ANY NUMBER OF PEOPLE FROM ALL DIFFERENT WALKS OF LIFE TO ACTUALLY CLOSE FAYETTE POWER PLANT, AND THE PROMISES MADE TO CLOSE FAIR FLOWER PLANT THAT WE HERE, THAT IS SOMETHING WE JUST CAN'T DO.

AND IT FEELS EQUALLY DISAPPOINTING BECAUSE IT HAS FELT OF LATE AS A CAT AND MOUSE

[00:15:01]

GAME OF ALMOST TWO PLAYERS WHO WERE ASKED TO GET A DIVORCE AND WHO I FELT LIKE MAYBE REALLY DIDN'T WANT TO GET THAT DIVORCE AT ALL.

AND IT'S HARD TO SEE WHAT HAPPENED.

YOU KNOW, IT'S HARD FOR ME TO KNOW IF AUSTIN ENERGY REALLY DID WANT TO GET OUT AND JUST COULDN'T OR WHAT HAPPENED.

I MEAN, THE TRANSPARENCY HERE HAS BEEN ZERO AND FOR A PUBLIC INSTITUTION.

I THINK THAT DOESN'T SPEAK VERY HIGHLY.

I MEAN, IF COUNCIL MEMBERS DON'T EVEN KNOW WHAT'S GOING ON, IT DOESN'T SPEAK VERY HIGHLY, UM, EQUALLY SAD.

UM, IN ALL RESPECT TO MR. WELDON, UH, THAT WE CELEBRATE THE REACH PROGRAM AS WE DO TO ME, THE REACH PROGRAM IS SUCH A SLOW APPROACH TO QUITTING SOMETHING WE SHOULD JUST GET OUT OF.

IT WAS LIKE A SMOKER THAT SMOKES TWO PACKS A DAY AND THEN SAYS, WELL, THIS YEAR I'M JUST GOING TO SMOKE ONE CIGARETTE LESS, AND NEXT YEAR, TWO CIGARETTES, LESS.

AND THE YEAR AFTER THAT THREE CIGARETTES LESS, BUT BY THE END OF IT, ALL THE SMOKERS STILL GOING TO HAVE CANCER, THEY SHOULD, WE JUST HAVE TO QUIT.

WE CAN'T QUIT SLOWLY NOR CAN WE CELEBRATE THAT BY QUITTING, BY NOT BIDDING IN OUR COAL PLANT, WE'RE GONNA HAVE SOMETHING CLEANER IN THE FORM OF NATURAL GAS.

IT BURNS CLEANER, BUT FOR THE PROBLEM OF CLIMATE CHANGE, IT'S MUCH MORE POTENT.

IT'S 80 TIMES MORE POTENT BECAUSE OF THE RELEASE OF METHANE DURING THE, UM, EXTRACTION AND TRANSPORTATION OF NATURAL GAS.

IT'S ALSO A CLIMATE POLLUTE.

SO IT'S A AIR POLLUTANT FOR PEOPLE THAT LIVE OUT WHERE THEY'RE EXTRACTING THE NATURAL GAS.

SO IT'S NOT A CELEBRATION OF ANY SORT TO SWAP OUT.

COAL FOR GAS IS REALLY TERRIBLE.

SO I DON'T THINK THERE'S ANYTHING TO CELEBRATE UNTIL WE CELEBRATE GETTING OUT OF FAYETTE COAL PLANT AND INTO RENEWABLES, BECAUSE THAT'S WHAT WE HAVE TO DO.

THAT'S WHAT'S CALLED ON.

AND I THINK WE NEED TO KEEP PUSHING AS POLICYMAKERS.

I HOPE AND ASK THAT YOU WILL CONTINUE TO PUSH THE, THE REAL DECISION MAKERS, THE DECIDERS, WHO ARE THE CITY COUNCIL TO REALLY FIGURE OUT A WAY TO GET US OUT OF FAYETTE AS SOON AS POSSIBLE.

THANK YOU VERY MUCH.

AND OUR LAST SPEAKER IS DALE BEULAH.

GOOD EVENING COMMISSIONERS.

I'M DALE BEULAH.

I WOULD LIKE TO SHARE MY THOUGHTS WITH YOU THIS EVENING REGARDING THE FAYETTE POWER PLANT AND OTHER ISSUES OF CLIMATE CHANGE IN THE PAST, MANY OF US HAVE BEEN PATIENT KNOWING THAT AUSTIN ENERGY TOLD US TO WAIT TILL THE EARLY 2020S AND OUR SHARE OF THE PLANT WILL BE SHUT DOWN.

AND SINCE ALL OF THESE TALKS ARE PROPRIETARY, WE CAN'T REALLY TELL YOU ANYTHING TONIGHT.

IT APPEARS THAT THOSE ASSURANCES HAVE NOT BORNE OUT AND IT'S TIME TO PUT PRESSURE ON ALL FOLKS THAT ARE INVOLVED SINCE THERE IS NO PLANET B, WE IMPLORE YOU TO EITHER KEEP PUSHING LCRA, OR IF IT'S FUTILE LAUNCH A MASSIVE EFFORT TO MOVE US MORE QUICKLY FORWARD WITH RENEWABLES, SUCH AS WIND AND SOLAR AND MASSIVE STORAGE EFFORT.

WE ALL SAW THE WINTER STORM EFFECTS.

THE WINTER STORM EFFECTS ON NATURAL GAS.

WE CAN'T ALWAYS DEPEND ON THIS SOURCE OF ELECTRICITY.

WE MUST TAKE ADVANTAGE OF THE PASSAGE OF THE FEDERAL INFRASTRUCTURE LEGISLATION BY BORROWING BEAR, BURYING OVERHEAD TRANSMISSION LINES AND WINTERIZING EQUIPMENT, AND MUCH MORE IT'S TIME FOR AUSTIN ENERGY TO TRANSITIONED VEHICLES TO ZERO EMISSION VEHICLES.

NOW THAT THERE ARE SO MANY CHOICES AVAILABLE AND BY PLACING ORDERS, NOW WE CAN GET A JUMP ON THE LOWER EMISSIONS IN HOUSE.

OUR GOVERNOR IS ASKING THE PUC TO PUSH FORWARD WITH GAS, COAL, AND NUCLEAR, WHILE DISCOURAGING RENEWABLES, THAT CANNOT GUARANTEE A 24 7 AVAILABILITY.

AND IT SEEMS THAT HE'S UNAWARE OF THE LOSS OF THESE CARBON SOURCES, AS WELL AS THE SOUTH TEXAS NUKE DURING THE RECENT WINTER STORM THAT KILLED OVER 200 TEXANS.

IT IS THEREFORE UP TO US TO LEAVE A LIGHT LIVABLE PLANET FOR THE NEXT GENERATION AND NOT HOPE FOR THE STATE TO BE A PARTNER IN THIS EFFORT, PERHAPS A BETTER PARTNER WOULD BE TESLA AND THEIR MASSIVE BATTERY STORAGE PRODUCTS THAT HAVE BEEN SO POSITIVE ON THE AUSTRALIAN GRID WITH 193.5 MEGAWATTS OF STORAGE, SAVING THEM OVER $100 MILLION.

I'VE READ TODAY THAT THE BUILD BACK BETTER PLANNING.

CONGRESS HAS JUST ADDED A $20 PER TON PRICE ON CARBON, WHICH WILL BE A GAME CHANGER FOR AUSTIN ENERGY AND THE FAYETTE COAL PLANT.

I HAVE WITH ME FORUMS

[00:20:01]

FOR LOCAL LEADERS TO SIGN THAT THEY SUPPORT A FEE ON CARBON AND THAT THEY WOULD LIKE, IF ANY OF YOU WOULD LIKE ONE OF THOSE FORMS. I HAVE THEM WITH ME IF YOU'LL SIGN IT TONIGHT.

UH, I HAVE SIGNATURES FROM MANY CITY AND COUNTY OFFICIALS THAT HAVE ALREADY SIGNED.

THANK YOU FOR YOUR TIME AND REMEMBER WHERE THERE IS NO PLANET B.

THANK YOU, MR. BR, UH, MR. CHAIR, THAT'S ALL THE SPEAKERS.

SO WE HAVE SOME NEW MEMBERS.

ACTUALLY, WE HAVE ONE.

REMEMBER, WE'D LIKE TO TAKE SOME TIME FOR YOU TO INTRODUCE YOURSELF, TAKE 45.

AND SINCE YOU KNOW, WE'VE NEVER MET RANDY AND KAY IN PERSON, I THINK YOU JOINED.

SO WHY DON'T YOU TAKE SOME TIME TO, SO MARSHALL, WELCOME.

I'M GRATEFUL TO BE HERE.

MY NAME IS MARSHALL BOWEN AND, UH, THIS IS MY FIRST MEETING SINCE BEING APPOINTED A COMMISSIONER.

AND I'M, I'M THRILLED TO BE HERE IN PERSON WITH YOU ALL.

I'M A NATIVE AUSTIN.

I GREW UP HERE IN AUSTIN AND, UH, LOVE THIS CITY A LOT AND LOVE PUBLIC SERVICE AND GIVING BACK AND EXCITED ABOUT THIS OPPORTUNITY.

I AM AN ATTORNEY HERE IN AUSTIN AND I'VE BEEN INVOLVED IN FORTUNE THE GOVERNOR AND THE LEGISLATURE BEFORE AND BEEN INVOLVED IN PUBLIC POLICY.

SO THIS KIND OF FITS IN MY WHEELHOUSE, BUT MOST IMPORTANTLY, I'M A NEW DAD.

I WELCOMED MY FIRST DAUGHTER, UH, ABOUT A MONTH AGO, ALLIE.

AND SO THAT IS MY BIGGEST CLAIM TO FAME.

THANK YOU, RANDY.

YOU WANT TO, AH, GOOD EVENING EVERYONE.

MY NAME'S RANDY CHAPMAN, UH, AND I, THIS IS MY FIRST IN-PERSON MEETING.

UH, AS I JOINED, UH, EARLY SPRING, UH, MY BACKGROUND IS ON A MOUSE OR A LAWYER, UH, FORGIVE ME, UH, AND, UH, TEXAS LEGAL SERVICES CENTER SINCE 1985, WHERE I'M LARGELY WORKED ON ENERGY ISSUES.

UH, BOTH HAD THE PUC AND THE TEXAS LEGISLATURE AND, UH, ON BEHALF OF LOW-INCOME CONSUMERS.

MY BACK IS TO MOST OF YOU.

UM, I'M K-12 SOUL.

I AM ALSO A LAWYER, BUT I'M RETIRED.

UH, AND I SPENT, UH, ABOUT 35 OF MY 39 YEARS OF PRACTICE BEFORE THE PUC.

I WAS ALSO AN ADMINISTRATIVE LAW JUDGE THERE FOR 10 YEARS.

UM, AND, UH, I, IT'S AN AREA THAT I STILL HAVE A GREAT DEAL OF INTEREST IN AND, UH, WAS HAPPY TO, UH, UH, WHEN ASKED TO SERVE TO, TO BE ABLE TO DO SO.

I'M FINDING RETIREMENT PROVIDES A LOT OF OPPORTUNITIES FOR VOLUNTEER WORK AND RANDY AND I PRACTICED TOGETHER, UM, ARE OFTENTIMES ON OPPOSITE SIDES, UH, IN AN EARLIER LIFE.

SO IT'S A PLEASURE TO BE HERE.

THANK YOU, CYRUS.

YOU'RE ALL HAND, RIGHT? YEAH, SURE.

UH, SILAS READ, UM, I'M HERE ON BEHALF OF, UH, KATHY TABOS, WHO APPOINTED ME TO THE AUC, UH, AND IN MY DAY JOB, I WORKED FOR THE SIERRA CLUB LONESTAR CHAPTER AND M OFTEN AT THE LEGISLATURE AND, UH, PUC, YOU SEEM FAMILIAR TO ME, SO MAYBE OUR PATHS PATHS CROSSED THE LEGISLATURE, UM, AND, UH, HAPPY TO BE HERE, ALTHOUGH LIKE A LOT OF THE PEOPLE WHO SPOKE EARLIER, UH, SOMEWHAT SAT IN TO HEAR THE NEWS ABOUT A WEEK AGO, I GUESS.

UM, AND, UH, LOOKING FORWARD TO MAYBE WORKING ON SOME SOLUTIONS TO THAT.

SO CARRIE AND I WOULDN'T DO OKAY.

I'M DAVE TUTTLE.

I'M THE VICE CHAIR I'M SITTING IN FOR MADDIE HOPKINS.

UM, MY BACKGROUND IS TECHNOLOGY USED TO DESIGN COMPUTERS AND MICROPROCESSORS AT TWO LARGE COMPANIES HERE.

AND WE WENT BACK AND, UM, FINISHED MY PHD IN ELECTRICAL ENGINEERING AND IT'S IN THE ENERGY SPACE.

SO I FEEL A LITTLE BIT LITERATE ABOUT ALL THIS AND GLAD TO SERVE I'M CARRIE FOR CHILL AND RATTLERS APPOINTEE TO THE EEC AND A HAVE BEEN ON THE EAC FOR SIX YEARS NOW, MAYBE A LITTLE BIT MORE, UM, AND I'M GLAD TO BE HERE.

ALL RIGHT, THANKS.

SO LET ME GO THROUGH, I THINK THE FIRST THING IS APPROVAL OF THE MATS.

UH, SO, UH, HOPEFULLY I'LL BE THERE IN PERSON, UH, OR MY, UH, BACKGROUND, UH, POWER SECTOR.

GETTING A SUGGESTION TO ALLOW YOUR FOLKS, WHO ARE YOU GOING ABOUT EVERYTHING.

SURE.

I APPRECIATE THAT.

THANK YOU, ERIC.

DO YOU WANT TO GO FIRST? SURE.

UH UM, I , I'M A COMMISSIONER OR, UH,

[00:25:03]

, UH, CURRENTLY I WORK AT AND, UH, PRIMARILY WORK ON EARLY STAGE, UM, INNOVATION.

SO WHEN YOU WEREN'T WORKING WITH, OKAY, THANK YOU.

HEY KAREN.

HI, KAREN HEN FROM, I'M HAPPY TO BE HERE, SORRY.

IT'S NOT IN PERSON.

UM, AND I'VE BEEN WORKING ON ENERGY ISSUES FOR OVER 20 YEARS.

[1. APPROVAL OF MINUTES – Approve minutes of the August 19, 2021 special-called meeting.]

ELSE BEFORE WE GO TO APPROVALS? OKAY.

DO WE HAVE A MOTION TO APPROVE THE MINUTES ALSO MOVE SECOND, SECOND.

[NEW BUSINESS – CONSENT]

TO TWO THROUGH 17.

ANY THAT WANT TO BE PULLED OUT A QUESTION ABOUT THE AMANDA AND ROBIN METERS OR SIX? IS THAT THE WALL? YEAH, I DO TOO.

SO LISTEN.

ANY OTHERS TO BE PULLED BESIDES SIX? I HAD A QUESTION, UM, CONCERNING THE WORK BEING DONE AT DECKER.

I CAN'T YET, IF IT'S 12 OR 13, I CAN'T TELL FROM MY NOTES.

UH, THAT'S NOT 12, SORRY.

I'LL FIND IT.

THINK THE CONTROLS ARE BROUGHT OUT.

THAT'S IT? THANK YOU.

NUMBER 13.

JUST A QUESTION ON THAT.

AND I HAD A QUESTION ON FOUR.

JUST ON A KIND OF THE LABOR FORCE SUPPLEMENTATION, WHAT THAT IS EXACTLY.

SO WHY DON'T WE PULL THOSE OUT? THOSE THREE, IF THAT'S IT AND WE'LL GO APPROVE THE REST AND THEN GO BACK.

SO DO WE HAVE A MOTION TO APPROVE 2, 3, 5, 7, 8, 9, 10, 11, 12, 14, 15, 16, AND 17.

I SECOND PROVE.

WANT TO HIT NUMBER FOUR? WHO CAN TALK ABOUT NUMBER FOUR? FIRST? WHAT? I WAS JUST ELTON.

SO ARE WE GOING TO ORDER, SO DO YOU

[4. (11/18) [Capital Contracting] Authorize negotiation and execution of a construction contract with MasTec North America, Inc., for Underground Electrical Civil Construction Indefinite Delivery/ Indefinite Quantity contract in the amount of $24,000,000 for an initial 2-year term, with four 1-year extensions of $12,000,000, for a total contract amount not to exceed $72,000,000.]

I'M GOING TO NEED YOU TO COME TO THE PODIUM HERE.

THAT'S FOR THE TV CAMERA.

WHAT'S YOUR, WHAT'S THE QUESTION GO FORTH.

I WAS JUST CURIOUS ABOUT, IS THIS, WAS THIS KIND OF LIKE PART OF THE LONG TERM PLAN OR WAS THERE SOMETHING THAT KIND OF, IT JUST SEEMS LIKE A, I UNDERSTAND IT SOUNDS LIKE WE NEED TO RESPOND TO THE RAPID GROWTH IN DEMAND AND HENCE THE LARGE CONTRACT AMOUNT.

THIS IS A REPEAT THIS ONE ENDED AND THIS IS THE NEW CONTRACT COMING IN FOR ALL THE SYLLABLE.

SO THIS IS OVER THE PERIOD THAT YOU SEE AND THAT'S WHERE ALL THE SIBLINGS TO COME IN AND PLAN FOR IN THE NET PROFIT BY YEAR.

AND THIS IS DELAYED NEW INFRASTRUCTURE LINES, THE CIVIL WAR OR THE NEW CONSTRUCTION IS COMING IN.

SO ALL CIVIL WAR WOULD FALL UNDER THIS BASKET CONTRACT.

THAT'S ALL I HAD.

YOU GUYS ARE ANY MORE ON FOUR.

WE LOAD AFTER EACH ONE OR DO IT EITHER WAY.

YOU WANT EITHER WAY.

AND I'M NOT SPENDING THEM.

SO DO YOU WANT TO VOTE ON FOUR AND GET, OKAY.

SO WHAT HAPPENS IF WE DON'T DO THAT? BUILD OUT, THIS HAS BEEN TENDENCY BASED, SO IT'S NOT A DEFAULT THAT'S OUT THERE.

SO THIS IS AS THEY EXPEND, WE'LL BE PULLING FROM THIS CONTRACT, BUT I CAN TELL YOU BASED UPON THE LAST FIVE, 10 YEARS, UH, THIS IS NOT GOING TO BE AN ISSUE WITH AUSTIN.

I THINK EVERYONE KNOWS WHO'S CONTINUING TO BOOM, ESPECIALLY IN THE DOWNTOWN AREA.

AND THE CIVIL WORK HAS NOT SLOWED DOWN WHATSOEVER, BUT IT WILL NOT BE A WASH.

SO IT'S NOT SPENT THAT IT'S SET BACK.

SO IT'S NOT A, UH, A, IT, YOU'RE NOT GIVING ME THE DOLLARS

[00:30:01]

IT'S, IT'S SUSPENDED AS I, AS I FEEL THAT YOUR QUESTION.

ANYTHING MORE ON FOUR? WE HAVE A MOTION.

I MOVE APPROVAL SECOND.

I K KAREN.

SO WE HAVE UNANIMOUS CHAIR.

IF YOU COULD JUST CLARIFY FOR ME THE TWO, THEIR ONLINE EITHER HAVE HIM GET A VOICE ALONG WITH THEIR HAND VOTE.

IF YOU WANT TO ALARM.

SO KAREN, I SAW A HAND, SO YOU APPROVE.

THEY VOTED ON ITEM NUMBER FOUR ON THE AGENDA.

YEAH, I GUESS NEXT TIME, MAYBE HAVING SOME AGENDAS THERE, I APOLOGIZE TO THE PUBLIC.

WE'LL DO OUR BEST TO HAVE A PAPER AGENDA AS WE'VE TRIED TO MOVE TOWARDS A PAPERLESS PRODUCT, BUT WE CAN ALSO PULL THAT UP IF NECESSARY, BUT, UM, AND GIVE YOU A CHANCE TO AT LEAST READ THAT YOU CAN SEE AUSTIN GET TO THE AGENDA AND IT'S ALL, ALL THIS MATERIALS ON MINE AS WELL, JUST FOR THE PRESENT.

SO HE SEES WEBSITE.

FOR PURCHASING AUTHORIZE AN AMENDMENT TO A CONTRACT WITH I'LL READ IT OUT SO YOU CAN TRY IT.

SORRY.

GO AHEAD, MR. NUMBER SIX

[6. (12/2) [Purchasing] Authorize an amendment to a contract with Texas Electric Cooperatives, for the continued purchase of electric meters for use throughout the Austin Energy service area, to increase the amount by $10,000,000 and to extend the term by 18 months, for a revised total contract amount not to exceed $40,000,000. (Part 1 of 2)]

AND I KNOW THE MASK CAN COME IN HERE FOR THAT TO AUTHORIZE AN AMENDMENT TO A CONTRACT WITH TEXAS ELECTRIC CO-OPS FOR THE CONTINUED PURCHASE OF ELECTRIC METERS FOR USE THROUGHOUT THE AG SERVICE AREA, TO INCREASE THE AMOUNT BY 10 MILLION AND TO EXTEND THE TERM BY 18 MONTHS FOR A RISE TOTAL CONTRACT AMOUNT, NOT TO EXCEED $40 MILLION.

SO LET'S TALK ABOUT METERS.

UM, SCOTT THERE, THE DIRECTOR OF TRANSMISSION DISTRIBUTION ENGINEERING, TOM POINT IN THE PAST PRESIDENT OF THIS AREA.

UH, WHAT, WHAT'S THE SPECIFIC QUESTION ON THIS? SO IS THIS FOR A COST LIKE THE HARDWARE FOR THE SECOND THIRD GENERATION METERS OR EXACTLY? IT'S SECOND GENERATION SMART METERS IS TO REPLACE SOME OF THE FIRST-GENERATION METERS THAT WE HAVE OUT THERE NOW.

AND ALSO FOR THE, UH, THE GROWTH IT'S ANTICIPATED.

CLICK YOUR MICROPHONE ON, SORRY, IF THIS, THE LITTLE PICTURE OF THE PERSON SPEAKING NO ON THIS, MIKE IS LIVES.

IS THIS BETTER? SO HOW LONG HAVE THESE METERS LAST? THEY, UH, WELL, THERE'S ALWAYS FIRMWARE UPGRADES THAT GO WITH THEM, BUT I WOULD SAY THEY PROBABLY LAST, YOU KNOW, 15 TO 20 YEARS, MAY I ASK A METER? I KNOW THERE'S THE INFRASTRUCTURE BEHIND IT, BUT WHILE THESE METERS, UH, ALLOW FOR MASS LOAD CHECK, IF THERE'S A MASS LOAD SHED THAT THEY COULD BE USED FOR THAT PURPOSE, YOU KNOW, WE'VE LOOKED INTO THAT.

AND AT THIS POINT WE WILL HAVE TO SAY, NO, THEY, THEY, THIS STYLE OF METER WITH THE INFRASTRUCTURE AS IT IS NOW DOES NOT SUPPORT THAT.

NO, THAT'S ACTUALLY A COMPANY THAT SELLS, SELLS THE METER TO CO-OP VERSUS NOTHING COOPERATIVE ABOUT THEM.

IT'S JUST THEIR NAME, I BELIEVE.

IS THAT CORRECT? YEAH.

WELL, ANOTHER VENDOR, OTHER VENDORS THAT CAN DO THAT, NOT THAT I'M AWARE OF, BUT I'M NOT THE SUBJECT MATTER EXPERT IN THIS, IN THIS AREA.

SO THIS, THIS WAS A CONTRACT THAT WAS A FIRST STARTED IN 2017, AND THIS IS FOR AN EXTENSION.

IT WAS ORIGINALLY FOR, UH, A YEAR, FOR 60 MONTHS FOR $30 MILLION.

WE'RE ASKING FOR AN 18 MONTH EXTENSION FOR ANOTHER 10 MILLION TO PURCHASE THE ADDITIONAL METERS THAT WE SEE COMING.

AND, AND ALL OF WHICH IS RELATED BACK TO MY LOAD SHED QUESTION.

AS I KNOW, ASPEN ENERGY IS LOOKING AT, AT DOING NEURO CRITICAL SPACE, BEING MORE TARGETED.

UH, THESE METERS WON'T DO THAT.

[00:35:01]

AND GET BACK WITH YOU.

WE'VE HAD SOME INTEREST IN THOSE, YOU KNOW, AS FAR AS THE METERS.

AND IS IT REALLY THE METER ITSELF OR IS IT THE AMI BACK HAUL? THAT'S THE LIMITING FACTOR IN ALLOWING IT TO BE A VERY GREEN COLOR SOURCE OF LOAD SHED? SO EVEN IF THESE MEET, I WOULD THINK THAT THESE METERS, THERE'S NOTHING IN THE METERS THAT WOULDN'T ALLOW IT.

IS THAT TRUE? OR IS IT THE REST OF THE MESH INFRASTRUCTURE THAT YOU HAVE THAT WOULD BE, HAVE TO BE UPGRADED TO ENABLE THAT AGAIN, I'M NOT THE SUBJECT MATTER EXPERT HERE, BUT I DO KNOW THAT WE HAVE REMOTE, UH, DISCONNECT ON THESE METERS.

SO I DON'T BELIEVE IT'S THE METER ITSELF.

I BELIEVE IT IS THE, UH, UH, THE SYSTEM BACK BACK THE SYSTEM WON'T SUPPORT THE, UH, UH, LOAD SHED.

SO IS THERE ANYBODY ELSE I COULD TALK ABOUT? CAUSE THAT'S BEEN A TOPIC THAT'S BEEN OF INTEREST SINCE OBVIOUSLY FEBRUARY.

AND CAN WE PUT THAT ON NEXT MONTH'S AGENDA OR CAN ONE OF THE EXECUTIVES TALK ABOUT IT MORE DETAIL? YOU'VE PROBABLY GONE OVER AND I HAD A GENERAL QUESTION ALSO, JUST THIS IS SECOND GENERATION METERS.

CAN SOMEONE JUST DESCRIBE WHAT WE HAVE NOW, WHAT THIS WOULD BE AND WHAT THE FUTURE MIGHT BE? UM, I JUST DON'T WANT TO JUMP INTO A 10 MILLION CONTRACT IF THERE'S SOMETHING AROUND THE CORNER THAT COULD BE BETTER, RIGHT.

AGAIN, I WOULDN'T SAY I WOULDN'T RECOMMEND IT.

WE HAVE A PRESENTER AT THE NEXT MEETING TO TALK ABOUT THE FUTURE THERE, BECAUSE AGAIN, THIS IS NOT MY AREA.

UH, BUT I, I WILL SAY THAT TO GO TO ANOTHER VENDOR WITH THE, UH, WITH THE INSTALLED BASE THAT WE HAVE WOULD BE PROBLEMATIC BECAUSE WE DO HAVE RAPID GROWTH.

WE DO NEED, UH, THE METERS TO SUPPORT, YOU KNOW, THE GROWTH THAT WE HAVE HERE AT THIS POINT, AS WELL AS THE REPLACEMENTS THAT WE'RE TRYING TO DO.

SO HOW MANY METERS OF THESE, OF THIS GENERATION DO WE CURRENTLY HAVE? AGAIN, I APOLOGIZE FOR NOT HAVING THE NUMBERS.

UH, IF WE COULD ADD THAT TO THE INFORMATION, THEN WE CAN PROVIDE YOU THE NEXT MEETING.

I BELIEVE COMMISSIONER, HADN'T HAD A QUESTION, KEN.

UM, I FIND THAT A LITTLE DISAPPOINTING THAT YOU WOULD CONSIDER SPENDING UP TO 40 MILLION LITERS.

THEY CAN'T HELP THEM.

I AM WONDERING TWO THINGS.

ONE IS, DOES THIS WORK WITH ELECTRIC VEHICLES IN TERMS OF CHARGING? I BELIEVE THESE METERS ARE FOR, UH, RESIDENTIAL COMMERCIAL, REGULAR METERING TOP, NOT, NOT THE, UH, ELECTRIC VEHICLE CHARGING.

AND THEN MY NEXT QUESTION IS, UM, MIGHT CONSIDER VOTING ON THIS NEXT TIME.

THEY NEED A LITTLE BIT MORE INFORMATION, THE LARGE PURCHASE THAT LEADERS.

AND WHILE WE DO HAVE GROWTH HAPPENING QUICKLY, I THINK WE STILL, UH, IF I UNDERSTAND CORRECTLY, MONEY'S STILL IN THE BUDGET FOR NEIGHBORS.

UM, SO I THINK BEFORE WE GO OUT OF THIS LARGE THAT WE HAVE TO LOOK AT, THAT'S A GOOD QUESTION.

CHOSE A PATH AND COMMITTED TO IT QUITE SOME TIME AGO ON THIS NEW GENERATION OF METERS.

IF I'M, I, I GUESS IT SHOWS THE BENEFIT OR, UH, OF HAVING BEEN ON THE COMMISSION FOR SO LONG.

UH, I WANT TO RECOMMEND LIKE EVERYBODY ELSE SO FAR THAT WE, IF, IF, WELL, FIRST OFF I'LL ASK, IS THERE ANY REASON WHY IT HAS TO BE DONE THIS MONTH AS OPPOSED TO NEXT MONTH, IF IT'S NOT AN EMERGENCY? YEAH, SO OKAY.

SO, SO HERE'S, HERE'S THE REASON I'M SAYING THIS.

THIS IS NOT OUR FIRST PASS AT THESE METERS.

UH, THIS IS OUR FIFTH PASS ON METERS, AT LEAST.

UH, AND WE

[00:40:01]

AND THE MAIN REASON WE CHOSE IT WAS BECAUSE IT HAS A BACK, UH, BACKEND THAT IS MANAGED AT THE UTILITY ITSELF, WHICH IS UPGRADABLE SO THAT THE METERS CAN ACTUALLY BE IMPROVED OVER TIME AS THE, AS THE NEED TO DO IT.

AND THE TECHNOLOGY IS AVAILABLE.

UM, IT WOULD BE IT'S MY UNDERSTANDING BASED ON ALL OF THE PRIOR TIMES THAT WE'VE AUTHORIZED THESE METER PURCHASES THAT GOING BACKWARDS RIGHT NOW WOULD BE A HUGE PROBLEM, UH, AND, AND POTENTIALLY, YOU KNOW, POTENTIALLY RENDER THE METERS THAT WE HAVE OUTSTANDING THAT WE'VE JUST BOUGHT, NOT, NOT USABLE.

UM, SO I REALLY THINK WE OUGHT TO GET SOMEBODY WHO'S, WHO'S SUPER UP TO SPEED ON THIS TO COME AND EXPLAIN IT TO US.

UH, CAUSE THERE REALLY IS A HUGE LONG HISTORY THAT GOES WITH IT.

AND I SPECIFICALLY, I THINK THIS IS WHAT KAREN WAS GETTING AT, UM, ARE THESE LIVE FIGHT ENABLED SUCH THAT THEY CAN TALK TO TALK TO COMMUNICATE WITH OTHER APPLIANCES AND THAT THIS IS OUTSIDE MY AREA OF EXPERTISE OBVIOUSLY, BUT JUST, IT'D BE NICE TO GET THAT KIND OF INFORMATION FOR EXAMPLE.

YEP.

SO YEAH, WE'D LIKE, WE'D LIKE MORE DETAILS.

SO DO WE TABLE THIS OR DO WE VOTE? WE WANT TO GO TO DOWN, WE JUST TABLE DON'T JUST DON'T VOTE ON IT.

COMMISSIONER TURTLE.

I DID NOTE THAT THE, THE CURRENT CONTRACT EXPIRES DECEMBER 26TH OF THIS YEAR.

AND IT'S MY UNDERSTANDING THAT WE DO NOT HAVE A MEETING IN DECEMBER, CORRECT COMMISSIONER.

SO, UM, MR. VICE, IF WE DON'T TAKE THIS UP AND PROVE IT, WELL, MY SUPPOSITION IS THE STAFF WOULD MOVE FORWARD WITH THIS ITEM TO MAN COUNCIL.

BUT THAT AGAIN, THAT'S, THAT'S MY MAIN, THAT'S MY SUSPICION GIVEN THAT THE CONTRACT IS DUE DECEMBER, SO WE DON'T HAVE AN INVENTORY OF THESE.

I DON'T HAVE ANY INFORMATION.

I THINK WE SHOULD STILL POST ON THIS.

SO BASICALLY THERE'S A, COULD BE AN INVENTORY.

THERE'S A APPEAL PATH THAT YOU'RE SEEING AND WE'D LIKE MORE INFORMATION.

SO I THINK WE OUGHT TO JUST DEFER THE CONVERSATION.

I'M NOT SURE THAT IT EXPIRES IN DECEMBER.

I THINK YOU'RE LOOKING AT THE ONE BEFORE.

YOU'RE LOOKING AT THE ITEM BEFORE, WHICH IS THE ROCKS.

I THINK THE ROCKS EXPIRE ON DECEMBER 26TH, 2028 IS JOHN LANE.

MR. CHAIR, IF YOU WILL LIKE IN LINE WITH WHAT COMMISSIONER HAD AND IS ASKING, PERHAPS WE COULD TABLE THIS FOR NOW, WE'LL DO OUR BEST TO TRY AND GET, UH, UH, ANOTHER STAFF PERSON ALONG WITH SCOTT WHO MAYBE CAN ANSWER YOUR QUESTIONS TO SOME SATISFACTION.

LET'S DO THAT.

THAT WORKS FOR Y'ALL.

13, I'LL GO AHEAD AND READ IT.

CANDIOTTI NO COMMENT.

[13. (12/2) [Capital Contracting] Authorize negotiation and execution of a Job Order Assignment with Alpha Building Corporation, one of the City’s Facilities Improvement Job Order Contractors, for Decker Control Center Buildout Phase 1 for a total amount not to exceed $900,000.]

AUTHORIZE NEGOTIATION AND EXECUTION OF A JOB ORDER ASSIGNMENT WITH ALPHA BUILDING CORPORATION.

ONE OF THE CITY'S FACILITIES IMPROVEMENT JOB ORDER CONTRACTORS FOR DECKER CONTROL CENTER, BUILD OUT PHASE ONE FOR A TOTAL NOT TO EXCEED $900,000.

MA'AM UM, SO I'M NOT THAT FAMILIAR WITH WHAT IS OUT AT DECKER, BUT I DO KNOW THAT DOCK DECKER TOO IS TO CLOSE IN THREE MONTHS.

SO MY QUESTION IS WHY, WHAT CAN YOU EXPLAIN WHAT THE NECESSITY IS FOR MOVING OR BUILDING OUT THE CONTROL CENTER BUILDING AT? YEAH.

WHAT THIS IS, IS, UH, UH, SCC OPERATIONS AND EMO NEED TO MOVE SOME DATA SERVERS THIS INTO THIS AREA.

IT HAS A BACKUP.

SO THE, UH, THE GROWTH THAT WE'VE HAD AND THE INCREASE IN THE DATA, UH, EQUIPMENT THAT WE NEEDED, UH, AND ESPECIALLY WITH THE SHUTDOWN DECKER TOO, BECAUSE SOME OF THAT EQUIPMENT IS, IS IN THE, IS IN THAT LIBRARY WHEN THEY CALL IT THE LIBRARY, BUT THEY'RE USING SOME OF THE ROOM THERE.

SO THIS IS A PRE-MANUFACTURED BUILDING.

THAT'S GOING OUT ON THE SIDE THAT, UH, SCC IS USING BASICALLY AS A DATA CENTER, AS A BACKUP TO WHAT THEY HAVE

[00:45:01]

AT SCC.

AND ALSO FOR SOME EMO, UH, UH, EQUIPMENT IS SUPPOSED TO GO OUT THERE TO THE INTENT, WAS TO USE JOB ORDER CONTRACTING, UH, AND USE OUR INTERNAL PEOPLE TO DO A LOT OF THE WORK.

UM, AND SO THE JOB WE'RE CONTRACTING IS LIMITED TO 500,000, UNLESS YOU HAVE, YOU CAN GO OVER THAT, BUT YOU HAVE TO HAVE A CITY APPROVED CITY COUNCIL APPROVAL, WHICH IS WHAT WE'RE ASKING FOR HERE.

AND SO THE PROBLEM HERE WAS THAT OUR INTERNAL RESOURCES CAN'T TO STRETCH IF THEY CAN'T HANDLE THE PROJECT RIGHT NOW.

AND SO WE'RE TRYING TO EXPAND THE WORK FROM HIS JOB ORDER CONTRACTING CONTRACTOR.

SO YOU REFERENCE SCC, WHICH IS SYSTEM CONTROL CENTER.

SO THE IDEA IS THAT IT, DECKER, WE HAVE SOME CONTROL COMPONENTS THERE FOR, BECAUSE YOU NEED GEOGRAPHIC DIVERSITY FOR YOUR CONTROL CENTERS, RIGHT.

IN CASE THE MAIN CONTROL CENTER GOES DOWN.

YOU NEED ANOTHER ONE WHEN YOU CLOSE DECKER TO, IS THERE ANY, WHAT, WHAT ELSE WILL REMAIN THERE'S GAS UNITS OUT THERE? IS THAT RIGHT? AND SO I'M JUST TRYING TO FIGURE OUT IF IT MAKES SENSE TO LEAVE IT THERE AND SPEND MORE MONEY ON THIS CONTROL CENTER THERE, OR IF IT WOULD MAKE MORE SENSE TO PUT IT SOMEPLACE ELSE THAT, I MEAN, I DON'T KNOW WHAT THE LONG-TERM PLAN IS FOR ALL OF DECKER, BUT IF EVENTUALLY, IF IT'S IN THE RECENT FORESEEABLE FORECAST THAT THE WHOLE FACILITY IS GOING TO BE CLOSED, WHY WOULD WE PUT MONEY INTO MOVING THE CONTROL CENTER THERE INSTEAD OF PUTTING IT SOMEPLACE ELSE? THE LOCATION OF THIS BUILDING IS NOT AT THE DECKER, IT'S ON THE DECKER PROPERTY, BUT IT'S, BUT IT'S WELL AWAY FROM THE DECKER GENERATION UNITS AND THE BUILDINGS.

AND SO THERE IS AN EXISTING BACKUP CONTROL CENTER THERE.

NOW IT JUST DOESN'T HAVE THE SPACE TO ADD THE INCREASE IN THE, UH, IN THE EQUIPMENT THAT WE NEED RIGHT NOW.

PLUS THE FACT THAT WE'VE GOT, UH, THE EMO SYSTEM HAS A BACKUP EQUIPMENT DATA CENTER IN THE LIBRARY OF THE, UH, OF THE DECKER POWER PLANT BUILDING, WHICH IS GOING TO BE SHUT DOWN.

SO THEY NEED TO RELOCATE THAT EQUIPMENT INTO THIS, TO, TO DO THE SAME THING AS FAR AS A BACKUP DATA CENTER FOR THEIR, FOR THEIR PURPOSES, WHICH UNIT'S JUST THAT CONTROL CENTER IN THAT WELL, IT SERVES, UH, IT'S IT SERVES THE EMO SYSTEM, NOT NECESSARILY THE SPECIFIC TO THAT SPECIFIC GENERATION UNIT.

SO IT'S ON THE DECKER, SAME PROPERTY AS THE GENERATING UNITS, BUT IT IS NOT WELL, EXCEPT FOR THE LITTLE ONE THAT'S IN THE LIBRARY THAT YOU'RE GOING TO MOVE OUT.

SO THERE'S, IT'S NOT ANTICIPATED THAT THE CITY WOULD EVER GET RID OF THAT PROPERTY TO JUST PUT IT, YOU KNOW, AT THIS POINT.

THAT'S WHAT I WAS SAYING.

ANY QUESTIONS? WELL, I SHARE THAT CONCURRENT ABOUT, AT THIS POINT, UM, I SORT OF DECIDED, WELL, BACK THEN, I COULD NO LONGER SUPPORT PUTTING MONEY INTO RETIRING FACILITIES AS A MATTER OF PRINCIPLE.

AND SO, SO IS THIS WHAT YOU SAID, YOU WANT TO DEFINE WHAT ACRONYM IS ON ENERGY MANAGEMENT OFFICE OR ENERGY MARKET OPERATIONS.

SO THAT'S A FUNCTION FOR MANAGING THE ENTIRE FLEET THAT AEC HAS OR PROCURING ENOUGH ENERGY TO MEET LOAD.

THAT'S WHERE ALL THE GENERATION I'LL SPEAK TO THAT BETTER KNOW THEY'RE KEPT SEPARATE FROM OUR SYSTEM CHOSE CENTER WHO OPERATES THE TRANSMISSION DISTRIBUTION SYSTEM.

UH, SO, BUT WE CAN'T PUT IT IN THE SAME BUILDING, BUT, UH, ISOLATED FROM EACH OTHER.

POWER PLANTS THAT ARE THERE.

WOULD IT BE EQUALLY FEASIBLE FOR IT TO BE LOCATED SINCE IT'S NOT IN THE FACILITY THAT IT COULD BE AT THE AIRPORT OR ANOTHER LOCATION? IT WOULDN'T BE FEASIBLE AT THIS TIME BECAUSE OF ALL THE FIBER THAT WOULD HAVE TO BE RUN, THERE'S ALREADY FIBER OUT THERE.

UH, AND SO IT'S JUST A MATTER OF EXPANDING WHAT'S THERE NOW.

SO JUST TO BE CLEAR ON MY MIND, THE FACT THAT YOU PUT THE FACT THAT YOU GUYS WANT TO PUT, EXPAND AND PUT AN EMO CENTER, THERE HAS NOTHING TO DO WITH TH WITH THE

[00:50:01]

IT'S JUST, YOU HAVE A, YOU OWN THE PROPERTY AND YOU HAVE THE PROPER FIBER OPTICS OUT THERE.

SO WE'RE NOT PUTTING MONEY INTO DUCKER.

WE'RE JUST PUTTING MONEY INTO A BUILDING THAT HAPPENS TO BE AT DECKER.

ANY MORE QUESTIONS? ARE WE READY FOR A VOTE? I MOVE APPROVAL.

AS WELL, ERIC, YOU CAN.

I SEE BOTH OF THEM VOTING.

I THINK WE GO TO NUMBER 18 START OF THE STAFF BRIEFINGS THAT REPORTS.

SO WE HAVE UNANIMOUS APPROVAL.

SO NOW

[18. Generation Portfolio Announcement Briefing]

THANK YOU, SIR.

WE'LL ASK OUR, UH, VICE-PRESIDENT OVER POWER GENERATION TO COME TO THE PODIUM AND THERE HE IS.

GOOD EVENING COMMISSIONERS.

MY NAME IS PAT VICE-PRESIDENT PRODUCTION.

I'M GOING THROUGH OKAY.

THERE'S OUR SLIDES GO OVER SOME OF THE ANNOUNCEMENT ITEMS THAT WERE BROUGHT OUT LAST WEEK.

CAN YOU BE CLOSER TO THE MIC PLEASE? OKAY.

IS THAT BETTER? OKAY.

I'M GOING TO GO OVER SOME OF THE ANNOUNCEMENTS THAT WE MADE LAST WEEK, UH, TO HOPEFULLY ADD SOME FURTHER CONTEXT TO THEM.

UH, NEXT SLIDE.

OR DO I HAVE CONTROL UP HERE? DO I HAVE CONTROL OF THE SLIDES HERE? OKAY, SO, SO NEXT SLIDE PLEASE.

ALL RIGHT.

UH, SO WE, WE, WE BROUGHT UP THREE TOPICS, UH, THE NEGOTIATIONS WITH, UH, THE POWER PROJECT AND LCRA, UH, THE DECKER TO STEAM UNIT RETIREMENT AND THE NACADOCIOUS BIOMAP BIOMASS PLANT THAT THAT'S GOING TO BE AVAILABLE OVER THE WINTER AND NEAR ROUND THIS YEAR.

SO NEXT SLIDE.

SO THE FIRST STEP, OBVIOUSLY WE'VE TALKED ABOUT A LITTLE BIT TONIGHT IS THE NEGOTIATIONS THAT STALLED OVER, UH, THE FAT POWER PROJECT, OUR INTENT TO RETIRE, OUR SHARE AS BACKGROUND AUSTIN, ENERGY CONES, FPP, UH, WITH LCRA SPECIFICALLY 50% OF UNIT ONE AND UNIT TWO.

THERE'S A THIRD UNIT THERE THAT LCRA OWNS AND WHOLE, AND, AND L SRE IS THE PROJECT MANAGER.

SO THEY OPERATE THE WHOLE FACILITY.

UH, THE JOINT OWNERSHIP AGREEMENT THAT WAS ESTABLISHED FOR FAYETTE, UH, SIMPLY DOES NOT SET OUT HOW ONE PARTY CAN RETIRE, UH, ONLY AT SHARE THE PROJECT.

AND ULTIMATELY, UH, AT THIS POINT WE'VE BEEN UNABLE TO REACH, UH, TERMS THAT WOULD ALLOW US TO, UH, SHUT DOWN OUR SHARE.

UH, WE, WE DID NOT MEET MUTUALLY AGREEABLE TERMS, WHICH IS ULTIMATELY NEEDED BECAUSE OF THE TWO PARTIES, UH, SOMETHING THAT FRANKLY WE'VE POINTED OUT THAT WAS ALWAYS A RISK FACTOR.

UH, GIVEN THE JOINT OWNERSHIP ARRANGEMENT, I DO WANT TO MAKE CLEAR THAT COUNSEL WAS BRIEFED FULLY ALL THE WAY THROUGH THIS ENTIRE PROCESS.

IT SIMPLY BECAME NECESSARY BECAUSE OF THE TIME WE'RE AT, UH, WITH BUDGETS COMING UP, THAT WE NEED TO RECOGNIZE THAT, UH, WE WOULD LIKELY NEED TO INCLUDE BUDGET FOR OPERATIONS, THE FORTHCOMING FISCAL YEAR.

ONE MORE SLIDE ON THIS CAR.

STOP, PAUSE.

UH, SO THE NEXT ONE YOU CAN HARDLY HEARING.

AND THERE'S ONGOING OPPORTUNITY TO ENGAGE IN NEGOTIATION AND DISCUSSION WITH LCRA.

UM, THE NEXT, UH, SO AS WE SAID, THE NEGOTIATIONS AT A STOPPING POINT FOR THE MOMENT, UH, HOWEVER, UH, WHAT'S UP NEXT, WE CONTINUE TO RUN OUR FA OUR PORTION OF FAT, BUT WE WILL MINIMIZE OUR SCHEDULING OF THE OUTPUT FROM FED, UH, USING THE REACH PROGRAM HAS BEEN, HAS BEEN TALKED ABOUT THAT PROGRAM'S ALREADY BEEN AN OPERATION, UH, AND WE LOOK TO EXTEND ITS USE GOING OUT, UH, ERICA BEER SPOCK, OUR VICE-PRESIDENT FOR ENERGY MARKET OPERATIONS.

WE'LL TALK MORE ABOUT THE REACH PROGRAM COMING UP.

UH, BUT THE REACH STRATEGY CONSIDERS THE COST OF CARBON AND THE UTILITIES, UH, OFFERS TO SELL GENERATION FROM MPP.

AND THAT, THAT, THAT ADD, OR THAT WE INCLUDE THEN TURNS, TURNS INTO A REDUCTION IN THE OUTPUT.

AND SO THAT LEVER HAS BEEN USED AND WILL CONTINUE TO BE USED AND HOPEFULLY, UH, ADDED INCREASE, UH, MOVING AWAY FROM IT.

UM, UH, THE LAST POINT THOUGH, UH, I THINK IS IMPORTANT THAT WE CONTINUE TO NEGOTIATE WITH LCRA TO RETIRE OUR SHARE, BUT AS WE POINTED OUT, UH, IT'S NECESSARY AT THIS STAGE TO REFLECT WHERE WE ARE.

UH, SO THAT, TO THE EXTENT WE NEED TO MAKE BUDGET PLANS COMING UP, THAT IT'S REFLECTIVE OF THE CURRENT REALITY, BUT THE DOOR REMAINS OPEN

[00:55:01]

UM, I WOULD LASTLY POINT OUT THAT, UH, YOU KNOW, BOTH THESE UNITS ARE GETTING UP THERE.

THEY WERE COMMISSIONED IN 1979 AND 1980 RESPECTIVELY.

UH, THAT GIVES US A LOT OF OPPORTUNITY IN THE NEXT FEW YEARS TO CONSIDER WHERE THEIR RETIREMENT OCCURS.

UH, AS THEY AGE, UH, LIKE MYSELF, THEY'RE, THEY'RE NOT GETTING ANY YOUNGER.

UM, AND, UH, OUR 2035, NO CARBON DATE, I THINK IS A DATE THAT, UH, IS STILL NOT UNREASONABLE RELATIVE TO THE FAB POWER PROJECT.

UH, SO I HAVE SOME ADDITIONAL SLIDES ON THE OTHER TWO TOPICS.

SO IF YOU WANT TO PAUSE HERE FOR A FAYETTE OR I CAN CONTINUE ON, LET'S TALK ABOUT THIS ONE.

I THINK WE'LL HAVE A NUMBER.

SO WHAT'S THE AVERAGE LIFE.

IS THERE AN AVERAGE LIFE FOR COAL PLANTS? I DON'T KNOW, HAVE AN AVERAGE LIFE MYSELF, UH, GENERALLY WHEN THESE PLANTS ARE BUILT, UH, PLANTS LIKE THESE, THEY HAVE A 30 TO 50 YEAR GENERAL SPAN OF LIFE.

AND SO WE'RE IN ABOUT, IN THE MIDDLE OF THAT RANGE AT THIS POINT, OTHER QUESTIONS.

SO, SO I DID WANT TO, UM, JUST MAKE, MAKE A STATEMENT THAT, UH, YOU KNOW, OBVIOUSLY A LOT OF US THE PUBLIC SAW AND WE AS A UC MEMBERS SAW THE ANNOUNCEMENT THAT YOU GUYS MADE ON NOVEMBER 1ST.

UM, JUST, JUST FOR YOUR EDIFICATION.

I THINK IT WOULD HAVE BEEN HELPFUL FOR MEMBERS OF THE PUBLIC TO KNOW THAT YOU'D, UM, UH, YOU'D BRIEFED AND KEPT CITY COUNCIL, YOU KNOW, ABREAST OF WHAT WAS HAPPENING WITHIN NEGOTIATIONS, BECAUSE IT, IT, AT LEAST FROM A MEMBER OF THE EAC, IT APPEARED TO ME LIKE AUSTIN ENERGY WAS MAKING A DECISION AND THAT INFORMATION WAS NOT INCLUDED.

SO JUST FOR THE FUTURE, I THINK THAT WOULD BE HELPFUL, UH, FOR THOSE OF US TO KNOW THAT THIS WASN'T A DECISION YOU MADE ALONE, IT WAS IN CONSULTATION WITH, UM, CITY COUNCIL.

UM, AND THEN THAT THIRD, AND WE CAN TALK ABOUT THE REACH STRATEGY, I GUESS, WITH, WITH CO-WRITER, BUT THE FORWARD CONTINUE TO NEGOTIATE WITH LCRA.

UM, YOU KNOW, WE HAVE A CITY COUNCIL RESOLUTION OR A CITY COUNCIL PLAN.

THAT'S AN AUSTIN ENERGY PLAN THAT SAYS BY THE END OF 2022, UM, IS THERE, DO YOU BELIEVE THERE'S ANY OPPORTUNITY TO STILL MEET THAT DEADLINE OR IN EFFECT THAT WE SAYING THAT IS NOT SOMETHING THAT CAN HAPPEN IN 2022, GIVEN THE STATE OF THE NEGOTIATIONS RIGHT NOW? SO IS THERE STILL OPPORTUNITY? YES.

UM, BUT I'LL, UH, BUT WE'RE ALSO BEING REALISTIC ABOUT WHAT R AND CONSIDERATION OF THE FACT THAT WE START PLANNING OUR BUDGET, UH, THAT WILL COVER, UH, 20, 23 IN THE CALENDAR YEAR ANYWAY, UH, AT THE BEGINNING OF THIS NEXT YEAR.

AND SO WE HAVE TO PLAN IN A PRACTICAL FASHION GIVEN WHERE WE ARE, BUT THE DOOR'S STILL OPEN.

UM, WHEN WE INITIALLY, AND, AND IF YOU CAN'T ANSWER THIS QUESTION BECAUSE OF NEGOTIATIONS, YOU KNOW, JUST SAY YOU CAN ANSWER IT.

BUT, UM, FROM THE VERY BEGINNING WE DISCUSSED DIFFERENT STRATEGIES, EITHER A STRATEGY OF US SWAPPING UNITS OR A STRATEGY OF, UM, VIRTUALLY, UH, VIRTUALLY RUNNING THE POWER PLANT IN SUCH A WAY THAT ESSENTIALLY WE WEREN'T USING THE 509TH AND 90 MEGAWATTS OF POWER.

WE'RE BOTH THOSE OPTIONS EXPLORED WITH LCRI, IF YOU CAN, IF YOU CAN ANSWER THAT BECAUSE IT'S BEEN ALLUDED TO, THERE IS A NONDISCLOSURE AGREEMENT THAT INCLUDES DETAILS OF DISCUSSIONS.

UM, SO FINAL FINAL QUESTION.

IS THERE ANY, IS THERE ANYTHING THAT CAME OUT OF THE NEGOTIATIONS THAT YOU'VE LEARNED THAT YOU THINK WOULD BE HELPFUL FOR THE EUC OR A CITY COUNCIL, ANY STUDIES THAT ARE NEEDED, ANY, ANY ADDITIONAL THINGS THAT WE CAN, THAT WE COULD, UH, HELP YOU THAT COULD LEAD TO AN EVENTUAL RESOLUTION OF THIS? THANKS.

SO I NEED TO UNDERSTAND, UH, CYRUS JUST MENTIONED, UH, 590 MEGAWATTS.

IS THAT WHAT THE, UM, THE CAPACITY THAT WE, AUSTIN ENERGY OWNS IN BOTH UNITS ONE AND TWO 50%.

SO THAT'S THE TOTAL OR THE, OR THOSE UNITS THE SAME HAVE THE SAME CAPACITY EACH OF THEM? YES.

YOU'RE IN THE MARKET, I HAVE SOME UNDERSTANDING OF THAT, BUT, UH, IT WOULD BE HELPFUL TO ME IF YOU COULD TELL ME IF YOU CAN EFFECTIVELY ENSURE THAT YOUR FIVE, THAT AES 590 MEGAWATTS, WON'T BE, UM, WON'T BE ACCEPTED IN THE BID STACK BY JACKING UP THE PRICE, UH, ERICA, WHEN SHE COMES TO SPEAK TO ALL THE MECHANICS.

SO WHEN YOU TALK IN YOUR SECOND POINT ABOUT, UM, YOU KNOW, YOU MAKE

[01:00:01]

BUT I DON'T THINK WE CAN ABSOLUTELY GUARANTEE DO PUT A PRICE ON THERE.

THE PRICE INDICATES WHERE THE, WHERE THE UNIT IS TRIGGERED TO GO UP OR DOWN.

SO IT'S ONLY SUBJECT TO THE PRICE IT'S SUBJECT TO THE PRICE THAT YOU PUT ON THERE.

SO THAT, RIGHT.

AND DO YOU HAVE THE HISTORICAL, HOW EFFECTIVE IT'S BEEN TO, UM, UTILIZE, MAKE YOUR OFFERS UNDER REACH, UM, OVER THE PAST YEAR AND HOW OFTEN THE BIDS HAVE BEEN ACCEPTED.

OKAY, THANK YOU.

UM, IS THAT ACCURATE? AND WHAT PERCENTAGE OF THAT, UH, COMMISSIONER, I CAN'T COMMENT ON DETAILS OF, OF THE DISCUSSIONS WITH LCRA.

WELL, CAN YOU PULL US IN SOME WAY ON THAT, ON THAT MATTER? BECAUSE THERE ARE A NUMBER OF US WHO ARE LOOKING FOR CREATIVE SOLUTIONS.

I SHARED THE CONCERNS EXPRESSED BY CITIZENS WHO CAN FORWARD TONIGHT.

THIS IS SOMETHING THAT RETIREMENT WAS SOMETHING THAT WE AS A COMMUNITY HAVE WORKED FOR A LONG AND HARD AND HAD ENERGY AND LCRA DOESN'T SEEM.

SO, CAN YOU CLUE US IN TO DO A LITTLE BIT MORE OF THE DYNAMICS AND WHAT SOLUTIONS MIGHT BE OUT THERE? I REALLY CAN'T CHARACTERIZE, CHARACTERIZE IN THE NEGOTIATIONS WITH AUSTRALIA ANYMORE THAN WHAT WE'VE SAID.

I LIKE YOURSELF.

I'M DISAPPOINTED THAT WE HAVE TO MAKE THE ANNOUNCEMENT THAT WE DID, UH, BUT STILL HOPEFUL THAT THERE'S OPPORTUNITIES GOING FORWARD.

ERIC, ANY QUESTIONS? OKAY.

SORRY.

ONE LAST QUESTION.

A NUMBER OF THE CITIZENS, I THINK RIGHTLY POINTED OUT, UM, SOME OF THE ENVIRONMENTAL CONSEQUENCES IN THE LAND AND IN THE NEARBY COMMUNITIES.

AND I DON'T THINK YOU'RE THE PERSON OVER ENVIRONMENTAL COMPLIANCE.

UM, BUT IS THERE SOMEONE FROM AUSTIN ENERGY THAT WE MIGHT BE ABLE TO GET A FUTURE PRESENTATION ABOUT WHAT TESTING HAS OCCURRED THERE AND WHERE WE ARE IN TERMS OF THE COMPLIANCE OF THE COAL ASH AND OTHER? I THINK WE CAN TAKE THAT UP AND LOOK AT THAT AS A FUTURE AGENDA ITEM.

UH, I CAN TELL YOU THAT WE ARE IN COMPLIANCE FROM A REGULATORY STANDPOINT, UH, ACROSS THE BOARD.

I THINK THAT WOULD BE A HOPEFUL FUTURE ITEM.

AND I HAVE ONE MORE QUESTION SINCE LCRA IS THE OPERATOR OF THESE UNITS.

DO THEY HAVE ANY INFLUENCE OVER WHAT PRICE YOU, UM, OFFERED TO SELL APP? THANK YOU.

SO SYRAH, SHE WANTED TO ARTICULATE MORE IN DETAIL OF WHAT YOU WERE LOOKING FOR THERE, THE COAL ASH.

UM, I THINK IT WOULD BE USEFUL TO HAVE A PRESENTATION, UH, ON THE REGULATIONS THAT GOVERN THE OPERATION OF THE COAL PLANT, UH, AND MAYBE THE, THE, THE RISKS AND HOW WE'RE MONITORING THOSE RISKS.

AND I DON'T KNOW IF THAT'S SOMETHING AUSTIN ENERGY DOES OR LCRA DOES, BUT LEARNING ABOUT THAT, BECAUSE IT SEEMS LIKE A PARTICULAR ISSUE IS THE COAL ASH PILE AND HOW WE'RE DEALING WITH IT.

AND IF WE'RE, IF YOU GIVE IT AWAY, LCO IS DOING IT OR THE WAY WE'RE DOING IT IS LEADING TO PROBLEMS IN THAT COMMUNITY.

THAT IS A RESPONSIBILITY WE HAVE.

SO, YOU KNOW, I DON'T KNOW ABOUT THIS ISSUE, BUT I'D LIKE TO LEARN MORE ABOUT IT.

AND WE COME UP WITH SOME TEXT CAM YEAH.

[01:05:02]

ENERGY.

AND THEY END UP IN A LEGAL BATTLE.

AND THAT, BECAUSE THE CONTRACT INVOLVED DID NOT HAVE ADEQUATE OFFER, BOTH OF THE PARTIES HAVE BEEN TRYING TO ENSURE THAT NO ONE ELSE THAT LEAVES THEY DIDN'T HAVE OFFERINGS.

UM, IT IS MY HOPE THAT ALL LEGAL OPTIONS WILL BE EXPLORED.

AND THAT'S JUST IN COMMENT BECAUSE THEY DID FIND A WAY TO WORK THINGS OUT.

I THINK WE NEED TO FIND A WAY OF THAT LACK OF OFFERINGS COMMISSIONERS, IF YOU WILL HAVE TO HAVE A FEW MORE SLIDES RELEVANT TO, UH, DECKER IN NACADOCIOUS.

SO IF WE COULD GO TO THE NEXT SLIDE, UH, WE DID ANNOUNCE ALSO OUR RETIREMENT OF DECKER UNIT TWO.

UM, UH, THIS HAS BEEN A, UH, A LONGSTANDING PLAN, UH, FIRST, UH, UH, PUT OUT IN 2017 AND ULTIMATELY, UH, REAFFIRMED IN SEVERAL ITERATIONS OF THE RESOURCE PLAN SINCE THEN WITH THAT PLAN BEING ORIGINALLY TO SHUT DOWN UNIT TWO, BY THE END OF THIS CALENDAR YEAR, UH, WITH, UH, WITH THE CONSIDERATION OF THE AGE OF THE UNIT, IT'S BECOMING MORE DIFFICULT TO MAINTAIN SECURE REPLACEMENT PARTS AND TECHNICAL EXPERTISE.

IT'S CERTAINLY A LESS EFFICIENT, UH, RELATIVE TO NEWER UNITS, SUCH AS OUR COMBINED CYCLE UNIT OUT AT, UH, AT SANDHILL AND, UH, AND ULTIMATELY LOWER OUR CARBON EMISSIONS AS WELL.

UH, WE'VE UH, WE'VE DEFERRED THAT, UH, TO, UH, MARCH INSTEAD OF THE END OF THIS YEAR, IF YOU CAN CHANGE SLIDES AGAIN.

SO WE'VE, WE'VE CHANGED THAT TO MARCH AND RECOGNITION OF SOME OF THE CONCERNS WITH THE GRID, UH, FROM THE WINTER STORM.

AND SO THAT WAS A FAIRLY STRAIGHTFORWARD AND EASY, UH, MOVE TO EXTEND THAT TIME JUST A BIT, UH, FROM A PROCESS STANDPOINT, UH, WE SENT ERCOT WHAT'S CALLED A NSO OR NOTICE OF SUSPENSION OF OPERATION.

THAT'S REQUIRED OF ANYONE WHO WANTS TO RETIRE GENERATOR AND ERCOT.

UH, YOU HAVE TO GIVE THEM AT LEAST 150 DAYS NOTICE OF THE RETIREMENT DATE.

UH, THE DATE WE PUT IN THERE AS MARCH 31ST, 2022.

AND IN THIS PROCESS, ERCOT WILL DETERMINE WHETHER WEATHER UNIT NEEDS TO KEEP OPERATING DUE TO RELIABILITY.

AND IF SO, IT CAN PURSUE WHAT'S CALLED A RELIABILITY, MUST RUN A COMMITMENT OR CONTRACT OR RMR CONTRACT WITH AUSTIN ENERGY AS THEY WOULD DO WITH ANY OTHER GENERATION OWNER, IF THEY FELT THAT FACILITY WAS NEEDED.

UH, SO THEY ARE IN THEIR PROCESS CURRENTLY OF STUDYING THAT.

UH, THEY'LL ULTIMATELY LET US KNOW, UH, WITHIN THIS TIMEFRAME AND THAT'LL BE A PUBLIC CONFIRMATION OF THEIR FINDING.

AND THEN DEPENDING UPON THAT, WE'LL EITHER PROCEED TO, UH, THE ON MARCH 31ST OR ENGAGE AS, AS NEEDED IF NEEDED, UH, ON THE RMR DISCUSSION.

UH, SO WHAT'S NEXT AGAIN, WE'LL HEAR BACK FROM OUR COP, BUT ALSO AS WAS MENTIONED HERE PREVIOUSLY, UH, THIS WILL BE THE SECOND STEAM UNIT.

THAT'S RETIRED.

WE RETIRED UNIT ONE LAST YEAR AND FOUR, UH, UNITS WILL REMAIN OPERATION.

THESE ARE FOUR 50 MEGAWATT GAS TURBINES, UH, AND THEY ARE QUICK DISPATCH, UH, PEAKER TYPE UNITS.

UH, SOME FOLKS REFER TO THEM AS THEY WILL CONTINUE IN OPERATION.

WE DON'T HAVE A SHUTDOWN DATE FOR THEM AT THIS POINT.

UH, SO THOSE WILL BE ADDRESSED IN FUTURE RESOURCE PLANS.

ALL RIGHT.

UH, WE'LL GO TO THE NEXT SLIDE, UNLESS THERE'S ANY QUESTIONS ON DECKER.

THIS IS ADMISSIONS AND JUST IN THE LIFE FOR THIS FOR DECADES, TEAM TWO, IS IT HOW MANY MEGAWATTS IS IT? UH, YOU IT'S 420 MILLION AND THE RMR IT'S, IT'S AN OFFER THAT YOU CAN REFUSE IF ERCOT COMES AND SAYS YOU HAVE IT THEY'D HAVE TO PURSE, THEY HAVE TO PURSUE IT.

WELL, IT'S NOT AN OFFER, IT'S A REQUIREMENT.

SO IT'S A REQUIREMENT OF ALL MARKET PARTICIPANTS.

THEY CAN ESSENTIALLY RETAIN THE GENERATOR, UH, UNDER CONTRACT, UH, IF NEEDED FOR LIABILITY THESE AGREEMENTS.

AND THERE'S NOT BEEN A LOT, BUT IN RECENT TIMES, UH, THEY'RE USUALLY YOU'RE IN LANE, UH, AND THAT'S UNTIL TRANSMISSION CAN BE BUILT TO ADDRESS THE CONCERN THAT THE GENERATOR GOING AWAY WITH PRESENT.

SO THERE ARE TEMPORARY MEASURES AND THE GENERATION OWNERS COMPENSATED THROUGH ERCOT TO MAINTAIN THE FACILITY FOR THE PERIOD OF TIME THAT'S NEEDED.

MY, MY THREE YEARS OF RETIREMENT, IT MADE ME FORGET THAT THEY WERE NOT OPTIONAL.

[01:10:01]

THANK YOU FOR THAT CLARIFICATION.

ASK SOME MORE SLIDES.

THESE ARE OUR NECK.

UH NACADOCIOUS IF WE'RE HAVING ANY MORE QUESTIONS WITH DECKER.

UM, SO THIS YEAR WE WILL NOT BE MOCKED.

MOTHBALLING OUR NACADOCIOUS BIOMASS PLANT THAT WILL BE AVAILABLE YEAR ROUND.

UH, YOU MAY RECALL THAT PLANT IS A WOOD WASTE FUEL PLANT, SO IT TAKES WOOD WASTE FROM THE FOREST, UH, THINNINGS AND CLEARINGS IN, UH, EAST TEXAS.

AND IF YOU HAVEN'T BEEN THERE, UH, IN EAST TEXAS, UH, MOST FOLKS ARE AMAZED IF THEY GO THERE AND REALIZE HOW BIG OF A FOREST OPERATION THERE IS THERE.

UH, PREVIOUSLY WE DID MOTH BALL DID WHAT'S CALLED A SEASONAL MOTHBALL FOR THE UNIT, MEANING IT WAS MADE AVAILABLE TO RUN ONLY DURING THE HIGHER ENERGY DEMAND, SUMMER MONTHS, QUITE SIMPLY THE PRICING WAS SUPPORTIVE ONLY DURING THE SUMMER MONTHS, TYPICALLY IN YEARS, PAST, VIRTUALLY EVERY YEAR PAST.

UM, AND, AND, AND THAT'S NOT QUITE THE CASE AT THIS POINT.

UM, WE PURCHASED THAT PLAN, AS YOU MAY RECALL, FROM SOUTHERN POWER, UH, WHICH RELIEVED US OF, UH, OF A PURCHASE POWER AGREEMENT THAT WE HAD WITH THEM IN 2019.

AND THAT, UH, SAVED US 275 MILLION OR ABOUT 275 MILLION, UH, IN COST OVER WHAT WOULD HAVE BEEN A, A MORE, A LONGER TERM PURCHASE POWER AGREEMENT.

UM, AND AGAIN, IN TERMS OF KEEPING IT AVAILABLE FOR THIS YEAR, UH, SEVERAL FACTORS WE'VE BEEN ABLE TO IMPROVE SOME OPERATIONS, UH, FROM COMPARED TO WHAT WE HAD UNDER THE, UH, UH, POWER PURCHASE AGREEMENT, WHERE WE HAD A LONGER STARTUP REQUIREMENT PERIOD THAT IT TOOK TO GET THE UNIT ONLINE.

WE'VE CONDENSED THAT DOWN CONSIDERABLY.

SO IT'S MORE FLEXIBLE ALSO MARKET CONDITIONS, NAMELY NATURAL GAS IS PUSHED POWER PRICES UP, AND IT MAKES THE UNIT ECONOMICAL.

SO THE FACT THAT IT'S RUNNING IS ACTUALLY A GOOD THING.

IT PRODUCES RENEWABLE POWER, AND IT PRODUCES IT AT A PRICE POINT THAT IS HELPFUL TO OUR CUSTOMERS.

UH, AND AS IT IS, WE, WE WILL MAKE THAT UNIT AVAILABLE NOW FOR ON A YEAR ROUND BASIS, THIS POINT.

AND THEN LASTLY, UH, ONE MORE SLIDE, UNLESS THERE'S ANY QUESTIONS ON NACADOCIOUS.

WE SAID IT WOULD BE AVAILABLE YOU AROUND, ARE YOU TALKING ABOUT 20, 22 BECAUSE THE CONDITIONS ARE SUCH, SHE BELIEVED THAT MAKES SENSE.

IS THIS SOMETHING THAT YOU'LL BE LOOKING AT EACH YEAR, OR WE WOULD LOOK AT THIS EVERY YEAR, BUT FOR THE, CERTAINLY FOR THE NEXT YEAR, UH, AND THIS IS A RUNNING THING THAT YOU CAN DO WITH, WITH ANY GENERATOR.

UH, YOU HAVE THE ABILITY EVERY YEAR TO APPLY FOR SEASONAL, IF SO, DESIRED.

UH, BUT AT THIS POINT FOR 2022 IN PARTICULAR, UH, IT'S GOING TO BE AVAILABLE FOR, FROM NOW THROUGH THEN, AND THIS IS FROM MEMORY, BUT I HAVE, IN MY MEMORY, WE WERE THINKING THAT NACA DUCHESS WAS PROBABLY ONLY GOING TO RUN A FEW MORE YEARS.

ANYWAY, AT LEAST THAT'S WHAT I REMEMBER THE DISCUSSION AROUND THE 2030 GEN PLAN BEING AM I, IS MY MEMORY, RIGHT? WELL, SO AFTER WE WERE ACQUIRED, THE PLANT ACQUIRED THE PLANT, UH, THAT'S A, THAT'S A RUNNING EVALUATION AS TO WHEN WE RETIRED AT SOME POINT, UH, THAT WILL BE BASED ON THE ECONOMICS AND THE CONDITIONS, UH, UH, AT THAT FACILITY, WE DID NOT HAVE A SPECIFIC RETIREMENT DATE AND THE GENERATION PLAN.

WE HAD A GUESSTIMATE, BUT IT WASN'T, THERE'S NO SETBACK AS FAR AS.

OKAY, THANKS.

SO YOU KNOW, YOUR COSTS AND YOU CAN LOCK IN ON THE FUTURE CURVES TO KNOW YOUR REVENUE.

SO YOU'LL KNOW AHEAD OF TIME, WHETHER YOU'RE GONNA BE IN THE MONEY OR NOT.

YOU KNOW, THE TERMS OF THOSE CONTRACTS USUALLY A YEAR OR THEY BURY, UH, AND SAYING, YES, THEY'RE LOCAL, UH, FROM AN ECONOMIC PERSPECTIVE, AND THIS IS TRUE.

UH NACADOCIOUS UH, BECAUSE WOOD WASTE BIOMASS PLANTS, UH, IT OPERATES ACTUALLY QUITE LIKE A COAL PLANT AND THAT THERE IS A WOODPILE, LIKE A COAL PILE THAT SITS THERE, SO WE CAN ACQUIRE THE FUEL.

WE CAN STORE THE FUEL.

UH, THE FUEL IS NOT, YOU CAN'T STORE WOOD FUELS AS LONG AS YOU CAN, UH, COAL, UH, DETERIORATES.

AND IT HAS TO BE USED UP IN OVER A PERIOD OF MONTHS, UH, ULTIMATELY, BUT IT IS STORABLE.

AND SO WE KNOW OUR COSTS.

UH, WE ALSO KNOW FOR PRICING AND SO WE CAN SEE WHERE, YOU KNOW, THAT, THAT IT'S, IT'S GOOD FOR OUR CUSTOMERS TO CAPITA AVAILABLE OVER THIS TIMEFRAME.

YOU HAVE A CONTRACT WITH A SUPPLIER FOR THE FUEL, FOR THE WOOD.

DID YOU BUY, I'M SORRY.

DO YOU HAVE A CONTRACT WITH THE SUPPLIER OF THE, WHOEVER IT IS? SO ACTUALLY WE HAVE MANY CONTRACTS.

THERE'S A LOT OF, SO MANY OF THE SUPPLIERS ARE RELATIVELY SMALLER, SO, AND ARE THEY LOCAL AS AN EAST, TEXAS? YES.

AND WHAT'S THE GENERAL,

[01:15:01]

MOST BIOMASS PLANTS, IT COSTS THE MORE MONEY THE LONGER YOU HAUL IT FURTHER, YOU HAUL MORE COSTS.

SO THIS FUEL IS GENERALLY SOURCED WITHIN A HUNDRED MILE RADIUS OF THE PLAN.

IT'S THE POWER PLANT IS NEEDED THIS WINTER.

HOW LONG DOES IT TAKE TO BRING IT UP, BRING IT UP.

UM, SO, AND THIS IS TRUE.

ANY THERMAL TYPE FACILITY? UH, IT, IT DEPENDS ON HOW LONG IT'S BEEN OFF.

IF IT'S COMPLETELY COLD, IT CAN TAKE US ABOUT 36 HOURS.

UH, IF IT'S BEEN RUNNING A DAY OR TWO BEFORE, AND IT'S STILL WARM IN A WARM STATE, UH, THAT CAN BE REDUCED TO 24 TO 12 HOURS.

CAN YOU HAVE YOUR HAND UP ONCE AGAIN, THIS IS A FACILITY THAT WAS LOOKING LIKE WAS ON HIS WAY OUT AND WAS HEADING TOWARDS BEST INTEL AND IT'S OF GREAT CONCERN TO SEE, YOU KNOW, KIND OF AFTER JUST THE SUMMER MONTHS.

AND IT'S A GREAT CONCERN TO SEE.

IT WOULD BE RUNNING FULL TIME NOW, AND I'D LIKE TO REQUEST SOME AUSTIN ENERGY DATA, UM, THE, UM, LUPUS THAT COME OUT OF THAT PLANT AND HOW THEY COMPARE WITH OTHER FACILITIES, BECAUSE I THINK THERE'S MORE THAN ONE PROBLEM WITH THAT BIOMASS PLANT, WHICH HAS BEEN CONTROVERSIAL FROM DAY ONE.

AND, UM, I'D LIKE TO LOOK AT THAT.

I THINK THERE'S WAYS THAT WE CAN DO BETTER THAN THIS, AND WE'LL WORK OFFLINE TO COME UP WITH SOMETHING THAT YOU CAN COME BACK WITH.

I HAVE A FINAL SLIDE AND THIS IS A GOOD GO TO NEXT SLIDE.

THIS IS JUST, THIS IS JUST A RECAP OF OUR PORTFOLIO AS IT WILL STAND IN AT THE END OF MARCH, 2022.

SO AS YOU LOOK AHEAD WITH THE, UH, DECKER RETIREMENT, UH, AT THAT POINT, WE WILL HAVE AS NOTED HERE, SEVEN SOLAR FORM FARMS AT 966 MEGAWATTS OF CAPACITY, EIGHT WIND PROJECTS THAT ALMOST 1800 MEGAWATTS OF CAPACITY.

OUR SHARE OF THE SOUTH TEXAS NUCLEAR PROJECT, A TOTAL OF 430 MEGAWATTS, THE SANDHILL ENERGY CENTER, WHICH IS NATURAL GAS FIRED AT 570 MEGAWATTS.

AGAIN, THE FAYETTE COAL POWER PLANT 590 MEGAWATTS NACADOCIOUS, WHICH IS A HUNDRED MEGAWATTS IN THE DECKER QUICKSTART GAS TURBINES, WHICH ARE 200 MEGAWATTS.

AND AS YOU CAN SEE THE SPLIT ON THAT CAPACITY BETWEEN BEING CARBON FREE AND CONVENTIONAL 66 AND 34%, UH, RESPECTABLY.

SO I REMEMBER A FEW YEARS AGO WE HAD THE ROADMAP OF, I THINK IT WAS 62% WOULD 62% OR SO CARBON FREE 2020 OR 2021.

IT'S GOING TO BE 86% AFTER FAYETTE CLOSED DOWN IN 2025.

I MEAN, I WAS 20, 22, BUT BY 2025, IT WAS GOING TO BE 86%.

AND THEN BY 2030 WAS 93% OR SO.

AND THEN BY 2035, IT WAS GOING TO BE A HUNDRED PERCENT, ZERO.

SO WHAT ARE THE NEW NUMBERS AS FAR AS THOSE TIMEFRAMES OF YOU GOT 71% NOW, WHAT ABOUT 20 25, 20 30, 20 35.

SO OUR GOALS ARE THE SAME.

SO WE'RE WORKING TOWARDS THOSE GOALS AS THEY CURRENTLY STAND.

AND I THINK THEN THE NUMBERS THAT YOU'RE REFERRING TO AS FAR AS PROJECTIONS GO, THOSE WILL BE ADDRESSED IN FUTURE UPDATES OF THE RESOURCE PLAN.

WHAT OTHER QUESTIONS DO WE HAVE CAN, OR I CAN'T SEE, WHEN ARE YOU THINKING IS THE NEXT GENERATION I'LL PROBABLY LET ERIC BEER SPOCK ADDRESS THAT, BUT I BELIEVE OUR NEXT, UH, PLAN TO UPDATE A FULL UPDATE WAS IN CONCERT WITH OUR, UH, UH, RIGHT NEXT RATE ADJUSTMENT, UH, PLAN, WHICH IS A FEW YEARS OUT, NO WRONG MAXIMUM STRIKE THAT.

WHAT WAS THE ANSWER? CAN I ASK PAT ONE MORE QUESTION OR A PECAN ANSWER TO, UM, IN MY MEMORY WE HAVE TWO OTHER BIG SELLER CONTRACTS COMING ONLINE SOON.

PROBABLY A BETTER QUESTION ACTUALLY.

AND THE QUESTION WOULD BE ONE, WE HAVE THOSE

[01:20:01]

AND WHAT WILL THESE NUMBERS LOOK LIKE IF YOU KNOW OUR SECOND? SO, UM, OUR SECOND TO LAST SOLAR FARM IS ACTUALLY IN THESE NUMBERS.

OUR LAST CONTRACTED A SOLAR FARM IS GOING TO COME ONLINE IN 2023.

AND SO THOSE PROJECTIONS ARE GOING TO BE IN THE HIGH END HIGHER SIXTIES.

IT'S A QUITE LARGE FARM.

I DON'T HAVE THAT EXACT NUMBER FOR YOU, BUT WE CAN PROVIDE IT TO THE COMMISSION.

ANY OTHER QUESTIONS FOR MR. OH, OKAY.

VICE-PRESIDENT PEER SPOT.

NUMBER 19.

[19. REACH Update]

GOOD EVENING COMMISSIONERS.

MY NAME IS ERIC AND I'M VICE-PRESIDENT ENERGY MARKET OPERATIONS AND RESOURCE PLANNING.

AND IT IS A PLEASURE TO BE WITH YOU HERE THIS EVENING IN PERSON WE'VE BEEN THROUGH A LOT OF VIRTUAL MEETINGS AND ITERATIONS.

SO, UM, SO IT IS A PLEASURE, UH, TO BE IN FRONT OF YOU TODAY.

I'M GOING TO BE PROVIDING AN UPDATE ON REACH FOR THIS CALENDAR YEAR.

UM, IT'LL BE JANUARY THROUGH OCTOBER 31ST, 2021.

AND WHAT I'D LIKE TO DO YOU GO TO THE NEXT SLIDE REAL QUICK IS I'D LIKE TO PROVIDE A QUICK UPDATE AS TO, UH, THE STRATEGIES DEFINITION.

SO REDUCE EMISSIONS AFFORDABLY FOR CLIMATE HEALTH OR REACH IS A PLACE AS A COST OF CARBON.

UM, ON OUR SHARE OF THE ASSETS, DISPATCH PRICE, WE CARVE OUT A BUDGET, WHICH IS 2% OF THE PRIOR YEAR'S PSA.

AND THESE AREN'T DOLLARS THAT WE'RE SPENDING.

THESE ARE DOLLARS WE'RE NOT RECEIVING.

SO, UH, EMISSION SAVINGS FOR CALENDAR YEAR 2021 WERE TARGETED AT 1.28 MILLION METRIC TONS REACH WAS DESIGNED TO BE ABLE TO REDUCE, UM, THE UTILITIES CARBON EMISSIONS BY 30% OR 4 MILLION METRIC TONS FROM MARCH 26TH, 2020, WHICH IS WHEN THE PLAN WAS ADOPTED, UM, THROUGH DECEMBER 31ST, 2022 FROM FATE.

SO THAT IS THE FIRST PART OF REACH IS TO FOCUS ON, UM, FAYETTE AND TO BE ABLE TO ADDRESS THOSE 4 MILLION METRIC TONS THROUGH THAT TIMEFRAME.

UM, SO I THINK IT WOULD BE AN UNDERSTATEMENT TO SAY THAT THIS HAS BEEN A CHALLENGING YEAR, AND I'M HERE TO EXPLAIN HOW IT'S BEEN CHALLENGING IN MORE WAYS THAN ONE FOR US FOR REACH.

SO I WANT TO REVIEW SOME OPERATIONAL FACTORS WHICH HAVE IMPACTED, UM, OUR REACH TO DATE AND LATE SPRING, EARLY SUMMER OF THIS YEAR, FAYETTE RECEIVED THE EQUIVALENT RAINFALL OF A HURRICANE LEVEL EVENT.

LARGE AMOUNTS OF RAIN WILL CAUSE PONG LEVELS TO RISE ACCORDINGLY.

AND THE BEST METHOD FOR REDUCING POND LEVELS IS THROUGH EVAPURE EVAPORATION IN THE SCRUBBERS, THE SCRUBBERS EVAPORATE MORE WATER AT FULL LOAD COMPARED TO LOW LOAD.

SO TO GIVE YOU AN IDEA, EVAPORATION IS ON THE ORDER OF LIKE 600 GALLONS PER MINUTE AT FULL LOAD AND 250 GALLONS PER MINUTE AT WHAT WE CALL LSL OR THAT LOW SUSTAINABLE LIMIT.

SO MAXIMUM LOAD IS PREFERRED, UH, WHEN THERE IS A NEED TO CONSUME LARGE AMOUNTS OF WATER FROM THE PONDS PLANT MANAGEMENT AT FAYETTE REQUESTED OUR ASSISTANCE, UH, TO EVAPORATE, EVAPORATING THE WATER, UM, BY INCREASING OUR LOAD ON THE UNITS.

AND SO REACH OPERATION WITH SUSPENDED, UH, FROM MAY 17TH TO AUGUST 11TH.

SO THE EVAPORATION WAS SUCCESSFUL IN LOWERING THE POND LEVELS.

UM, THE GOAL WAS TO INCREASE THE FREE BOARD IN BOTH THE RECLAIMED POND, AS WELL AS THE COAL PILE RUNOFF POND TO LEVELS THAT WOULD ALLOW THE PLANT TO, UM, ABSORB A HURRICANE EVENT WITHOUT BREAKING OUR ENVIRONMENTAL POND PERMIT LIMITS.

THE OTHER ISSUES THAT WE FACE THROUGH THIS YEAR SINCE THIS IS OUR SECOND YEAR OF IMPLEMENTING REACH, IS WE, UM, HAVE BEEN, UH, MANAGING A VERY HIGH COAL PILE THROUGHOUT THE YEAR.

UM, THERE'S OPERATIONAL LIMITATIONS, UH, ON PILES OUT, UH, INVENTORY WISE AND SAFETY CONSIDERATIONS THAT WE NEED TO TAKE INTO, UH, UH, INTO ACCOUNT.

SO THE COMBINATION OF THESE THINGS IS WHAT, UH, REALLY HA SUSPENDED REACH AND, AND WAS DIFFICULT FOR US TO BE ABLE TO, UM, YOU KNOW, COMPLETELY USE THE STRATEGY

[01:25:01]

EVERY MONTH THROUGHOUT THE, UM, THROUGHOUT THE YEAR, IF YOU CAN GO TO THE NEXT SLIDE.

ANOTHER ITEM THAT, UH, WE EXPERIENCED THIS YEAR IS NATURAL GAS HAS BEEN ON A TEAR AT THE BEGINNING OF THIS CALENDAR YEAR, AS YOU CAN SEE, IT WAS SITTING AT LEVELS THAT WE EXPERIENCED IN 2020.

SO IN THE MID TWOS, UM, IT IT'S TRADED OVER $6.

THIS FALL AND HIGH GAS PRICES MEAN THAT WE HAVE TO BE VERY AGGRESSIVE WITH THE ADDER.

CAN YOU GO TO THE NEXT SLIDE? SO THIS SLIDE SHOWS OUR CARBON MATTER FOR THIS YEAR TO DATE.

UM, ESSENTIALLY WE STARTED THE YEAR USING, UM, UH, AN EFFECTIVE ADDER FOR THE NATURAL GAS PRICE, UM, SIMILAR TO WHAT WE USED IN 2020, UH, THE RAINS CAUSED, AS I MENTIONED, THE ADD OR TO GO TO ZERO.

AND THEN SINCE WE ARE BACK USING, UH, REACH, UH, MID SUMMER OR MID AUGUST, EXCUSE ME, UM, WE HAD A VERY STEEP CLIMB TO TRY AND CATCH THOSE TARGETS THAT WE HAD SET OUT FOR OURSELVES FOR THE YEAR, THE NUMBERS ON THE LEFT-HAND, WHAT THOSE, I'M SORRY, THIS IS POORLY MARKED.

AND I APOLOGIZE FOR THAT.

WE'LL CHANGE THAT BEFORE WE POST IT, BUT THIS IS JUST, UM, UH, $2 AND 50 CENTS IS THE TOP.

WE'RE ADDING THAT.

THAT'S WHAT GETS ACTUALLY ADDED INTO OUR THAT'S THE PRICE.

SO THIS IS A TABLE THAT REALLY SHOWS THE FIRST, UH, 10 MONTHS OF THE YEAR WITH REGARDS TO THE ACTUAL CARBON EMISSIONS.

AND I'M GOING TO KIND OF WALK THROUGH THE DIFFERENT COLUMNS FOR YOU.

SO, UM, THE FIRST COLUMN IS THE EMISSIONS THAT WE FORECAST THROUGH OUR MO THAT THROUGH OUR MODEL, WHAT IT WOULD ADMIT.

SO WE NEEDED TO HAVE A BASELINE WHEN WE CREATED REACH.

SO THAT IS THE NUMBER THAT, UM, WE WOULD, UM, HAVE.

THAT'S WHAT OUR MODEL SHOWED WE WOULD BE EMITTING, UH, WITH, WITH, WITHOUT ANYTHING.

THE SECOND COLUMN IS THE EMISSIONS THAT WE WOULD HAVE HAD, WE WOULD HAVE EMITTED HAD WE NOT APPLIED REACH.

SO IT'S ESSENTIALLY ECONOMIC FOR 2021.

AND THEN YOUR THIRD COLUMN IS, UH, WHAT WE ACTUALLY ADMITTED.

SO IT'S WITH REACH APPLIED.

AND, UM, THE LAST IS THE REDUCTION.

SO THAT'S SIX HUNDRED AND SIXTY TWO, SEVEN EIGHTY IS COMPARED TO THE 1.28 THAT I SHOWED ON THE FIRST SLIDE.

SO WE ARE BARELY UNDER HALF OF WHAT, UH, WE WOULD HAVE WANTED TO BE AT BY THE END OF THIS YEAR, BUT WE STILL HAVE, UH, 60 DAYS.

AND I'LL TALK A LITTLE BIT ABOUT WHAT WE PROJECTED TO BE ABLE TO DO BY THE END OF THE YEAR, IF YOU COULD GO TO THE NEXT SLIDE.

SO THIS SLIDE BREAKS DOWN THE COMPONENTS.

SO THERE'S DIFFERENT REASONS WHY WE MAY NOT EMIT, AND WE ARE VERY TRANSPARENT ABOUT WHAT IS ATTRIBUTED TO REACH AND WHAT MIGHT BE ATTRIBUTED TO OTHER FACTORS WITHIN THE YEAR.

SO, UM, THE 662,000 REDUCTION, UM, IS MADE UP OF, UH, 513,000 OF THAT IS REACH, WHICH IS THAT FIRST GREEN BAR THAT YOU SEE, WE ACTUALLY HAVE OUTAGES THAT DIDN'T WORK IN OUR FAVOR, WHICH MEANS WE WERE PROJECTING MORE OUTAGES IN OUR FORECAST THAN WHAT WE ACTUALLY EXPERIENCED.

SO THAT ACTUALLY ADDED, UH, EMISSIONS, UH, OR THE LACK OF THEM ADDED, UM, OR INCREASED THE NUMBER, UM, IN OUR COMPARISON, AND THEN FINALLY MODEL TO MARKET AS THE 480,000.

AND THAT JUST MEANS THAT MY MODEL WAS EXPECTING ME TO GENERATE MORE.

AND MY MA THE MARKET ACTUALLY HAD ME GENERATING LESS EMISSIONS.

SO WE, UM, TRACK ALL OF THESE, UH, DIFFERENT COMPONENTS BECAUSE WE WANT TO KNOW WHAT REACH IS ACTUALLY DOING AND HOW IT'S AFFECTING, UH, THE PLANTS, UH, DISPATCH.

SO IF YOU CAN MOVE TO THE LAST SLIDE.

SO, UM, OUR, THIS LAST SLIDE ACTUALLY BREAKS DOWN THE EMISSIONS, UH, JUST FOR FAYETTE, BECAUSE THAT REALLY IS WHAT REACHES TARGETING RIGHT NOW.

UM, SO WHAT YOU'LL SEE HERE IS IT BROKEN DOWN BY A UNIT AND ESSENTIALLY WE CALCULATE THIS.

SO THEN WE CAN SEE WHAT WE HAVE EFFECTIVELY BEEN ABLE TO, UH, DO A PER TON OR WHAT THE COST HAS BEEN PER TON FOR US TO BE ABLE TO USE THIS DISPATCH CURVE.

SO, UM, WE HAVE BEEN ABLE TO, UM, EFFECTIVELY SPEND THE $4 AND 18 CENTS PER TON TO REDUCE THE EMISSIONS USING REACH, WHICH IS, UH, THAT 530,000 THAT I MENTIONED A LITTLE EARLIER, OR I'M SORRY, 513,000 THAT YOU SEE RIGHT THERE.

SO, UM, TARGETED FOR THE REST OF THE YEAR.

WE ROUGHLY HAVE, UH, LESS THAN 60 DAYS, UM, ABOUT 50 DAYS LEFT.

AND, UH, UNIT TWO IS ACTUALLY IN OUTAGE RIGHT NOW.

AND, UH, IT'LL BE AN OUTAGE UNTIL THE THIRD WEEK OF DECEMBER.

SO THAT IS GOING TO PROVIDE ABOUT 275,000 OF THE 620,000 THAT IS LEFT IN MY TARGET.

UH, AND THEN, UH, OUR ADDER IS, UH, AT A POINT, UH, THAT IS

[01:30:01]

ROUGHLY, UM, GOING TO GENERATE ABOUT A HUNDRED THOUSAND OF A CARBON REDUCTION UNTIL THE END OF THE YEAR.

UH, WE'RE LOOKING TO POTENTIALLY INCREASE THE ADDER IF WE CAN CATCH THE MARKET CONDITIONS, CHANGE ALL THE TIME, UM, OR COT IS USING, UH, NEW METHODS TO BE ABLE TO PROVIDE RELIABILITY IN THE MARKET, WHICH IS, IT HAS BEEN, UH, DIFFERENT THAN WHAT WE'VE EXPERIENCED IN THE PAST AS WELL.

SO THAT ACTUALLY DOES AFFECT OUR STRATEGY.

UM, THERE WE'RE ACQUIRING MORE ANCILLARY SERVICES.

UM, THEY'RE USING TOOLS IN THEIR TOOLBOX THAT THEY'VE NEVER REALLY USED BEFORE TO PROVIDE RELIABILITY, AND THAT HAS A TENDENCY TO AFFECT PRICING ALL THROUGH THE MARKET.

AND SO THAT ALSO AFFECTS OUR STRATEGY.

SO WE'RE KIND OF PLAYING WITH THAT AD OR TO MAKE SURE THAT WE CAN MAXIMIZE THE USE OF IT, BUT THAT'S THE EXPECTATION.

UM, RIGHT NOW IT'S ABOUT 250,000 EMISSIONS THAT ARE AT RISK.

THAT'S WHAT WE'RE STILL TRYING TO CLOSE THE GAP TO MEET THAT 1.28.

AND, UM, IF WE DON'T MAKE THOSE, UH, THOSE, THAT LAST AMOUNT, WE WERE ROLLING THAT INTO NEXT YEAR, BECAUSE THE GOAL IS THAT, THAT FULL AMOUNT FOR, UNTIL THE END OF NEXT YEAR TO BE ABLE TO MAKE THAT REDUCTION.

SO THAT'S IT.

SO WHAT, SORRY, SORRY, GO AHEAD.

NO, GO AHEAD.

UM, SO WHAT EFFECT DOES THE STALLING OF THE NEGOTIATIONS TO PUT IT KINDLY WITH LCRA HAVE ON YOUR PROJECTIONS THROUGH 2022? SO WE'RE FLYING OUR REACH STRATEGY IN 2022 AS, AS WE HAVE, UM, AS WE ENVISIONED DOING PREVIOUSLY.

UM, I THINK, UH, WHAT WE HAVE COMMUNICATED IN OUR, UM, IN NOVEMBER THROUGH OUR COMMUNICATIONS, UM, IS THAT WE PLAN ON, UH, LOOKING AT USING REACH, UM, UH, POTENTIALLY MORE AGGRESSIVELY, UM, IN 2023, IT WAS JUST ABOUT THE, THE CO SO 500,000.

SEE IF MY MATH IS RIGHT, 500,000 TONS AT $4.

SO BASICALLY WE GAVE UP $2 MILLION TO GET HALF A MILLION TONS.

AND YOU, YOU BUDGETED ABOUT 8 MILLION.

SO, UM, IT'S ABOUT A LITTLE OVER SEVEN, BUT, UM, SO ONE OF THE ISSUES WITH REACH, WHICH I THINK, YOU KNOW, WE'RE SHOWING HERE IS, IS THAT THERE'S OPERATIONAL LIMITATIONS AS FAR AS WELL AS MARKET CONDITIONS.

THAT DON'T ALWAYS ALLOW ME TO USE THAT BUDGET AS, AS I WOULD LIKE.

SO, UH, YOU SAW THAT STEEP CURVE OF THE ADDER.

WE WERE, YOU KNOW, AGGRESSIVELY MOVING IT UP AS GAS PRICES, UH, MOVED UP.

AND, UM, WE ARE LOOKING TO CLOSE THAT GAP, UM, IN THE LAST COUPLE OF MONTHS.

AND LIKE I SAID, IF NOT, IF WE CAN'T MAKE THOSE LAST, UM, TONS, WE, WE PLAN ON ADDRESSING THEM IN 2020.

AND DO YOU KNOW NOW, WHAT YEAR DO YOU KNOW THIS YEAR'S PSA TO KNOW APPROXIMATELY WHAT YOUR BUDGET, IF YOU'RE GOING TO OPERATE WITHIN THAT SAME? UM, IT IS A LITTLE LOWER BECAUSE IT'S THE BUDGET, THE PSA'S LOWER QUESTIONS FROM THOSE ONLINE PARENT.

ERIC, CAN YOU HAVE YOUR LITTLE HAND THING UP, BUT, OKAY.

SO ERICA, WITH THE THINGS THAT ARE GOING ON WITH THE PUC, AS FAR AS MARKET REFORMS, YOU KNOW, ADJUSTING THE ALREADY YOU SEE, AND, AND THINGS LIKE THAT TO TRY TO PUT, UM, KIND OF CHANGE THE MARKET TO IMPROVE RELIABILITY, DO YOU THINK REACH WILL BE MORE EXPENSIVE OR LESS EXPENSIVE IN THE FUTURE WITH THOSE CHANGES GIVEN IT'S A DISPATCHABLE RESOURCE? UH, THAT'S A VERY GOOD QUESTION.

UM, YOU KNOW, WHAT'S GOING ON WITH PUC RIGHT NOW IS, IS INTERESTING.

UH, THERE'S A LOT OF DIFFERENT IDEAS BEING THROWN AROUND.

UM, I THINK REACH, UH, COULD BE, UM, IT COULD BE SOMETHING THAT IS VIEWED IN A WAY THAT WE WOULDN'T WANT IT TO BE VIEWED.

SO I THINK WE NEED TO BE VERY CAREFUL ABOUT HOW WE USE OUR STRATEGY, UM, AND, UH, BE VERY JUDICIOUS SO WE CAN CONTINUE TO USE IT, UM, EFFECTIVELY FOR OUR CUSTOMERS.

AND SO IT, WASN'T ONE OF THE MAIN POINTS THOUGH, TO KEEP RELIABILITY IN THE GRID.

THAT RESOURCE IS STILL THERE.

AND SO IF THERE'S A RESOURCE THAT CAN ACTUALLY HELP SAVE LIVES, YOU KNOW, YOU COULD SEE THE EMPHASIS ON THAT FROM FOLKS WHO, YOU KNOW, MAYBE LESS SENSITIVE TO THE ENVIRONMENTAL IMPACTS, BUT, UM, HOW DO YOU THINK THAT'LL PLAY OUT AS FAR AS THE, THE PUC IS COMPLETION? THERE'S SOME AGGRESSIVE DEADLINES THAT THE CHAIR HAS TO BRING SOME OF THIS TO FRUITION.

AND SO UNDERSTANDABLY, AND WE'RE ALL CONCERNED WITH THIS HUNDREDS OF PEOPLE DIED DURING FEBRUARY, RIGHT?

[01:35:01]

UH, THERE'S ALSO, UH, SOME, UM, UH, CONCERN FROM STAKEHOLDERS AND OTHER COMMISSIONERS THAT THINGS MIGHT BE MOVING A LITTLE TOO FAST.

UH, WE, YOU KNOW, IT TOOK US A WHILE TO JUST GET OUR ENERGY ONLY MARKET AND NODAL, UM, YOU KNOW, INTO A PLACE, UH, WHERE WE COULD START TO FOCUS IN AND ADOPT REAL TIME COLONIZATION, WHICH IS A BIG PART OF WHAT THEY WANT TO HAPPEN AS WELL.

AND WE THINK WOULD BE A GREAT BENEFIT TO THE MARKET.

SO, UM, YOU KNOW, I THINK THAT, UH, THERE ARE SOME, YOU KNOW, Q1 DATES, UH, THEY, YOU KNOW, J JANUARY 1ST DATES, UH, DECEMBER DATES.

UM, BUT, UH, YOU KNOW, I THINK THERE'LL BE SOME PASSAGE OF, OF ITEMS IN THE NEXT 60 DAYS.

UM, AND I THINK THAT, UH, WE'LL, WE'LL SEE IF, UH, THERE IS, IF THEY'RE ABLE TO PULL THE REINS A LITTLE BIT FOR FULL ANALYSIS, UM, FROM DIFFERENT, WHETHER IT'S BRATTLE, WHETHER IT'S, YOU KNOW, IMM TO BE ABLE TO BRING BACK SOME KIND OF MORE FULL, UH, STUDIES ON HOW SOME OF THESE, UM, UH, SOME OF THE THOUGHTS THEY HAVE TO MOVE FORWARD IS REALLY GOING TO IMPACT THE ENTIRE MARKET.

SO I THINK, UM, STEEL WE'LL BE SEEING THINGS SOON, BUT HOPEFULLY IT WILL BE THOUGHT THROUGH AND, YOU KNOW, WE'LL HAVE A FULL YEAR, 18 MONTHS TO BE ABLE TO KIND OF HAVE THEM GO THROUGH THE MARKET.

THINGS THAT WE ALREADY HAVE IN PLACE, THINGS THAT THEY ALREADY HAD IN THE PIPELINE.

UH, THOSE THINGS ARE, YOU KNOW, ERCOT HAS BEEN, UH, CERTAINLY, UM, UH, USING MORE TOOLS, LIKE I SAID, AND, AND, AND MORE, UH, UH, JUST, UH, KIND OF UPPING THE ANTE.

SO, SO THEN, UH, WE CAN, THEY CAN PROVIDE THAT RELIABILITY IN THE MARKET.

SO ONCE THE PUC ADOPTS, WHATEVER RULES CHANGES IT'S GOING TO ADOPT, UM, I THINK THIS IS STILL TRUE, THEN IT GOES TO ERCOT FOR PROTOCOL CHANGES, RIGHT? YEAH.

THERE'S SOME, IT DEPENDS ON WHAT WE'RE TALKING ABOUT.

THERE'S SOME THINGS THAT THEY WANT TO HAVE PASS THROUGH, YOU KNOW, WITHOUT THE SYSTEMS CHANGES, BECAUSE THEY CAN DO IT RIGHT AWAY.

BUT YES, IT DOES HAVE TO GO THROUGH TAC AND DO THEIR CARDBOARD.

AND THAT CAN BE A RATHER DRAWN OUT PROCESS.

UM, I DON'T THINK WE HAVE ANY MORE QUESTIONS HERE.

I CAN'T SEE KAREN OR ERIC.

UH THANK YOU.

THAT WE HAVE AN EXPERT THAT CAN ANSWER THE QUESTIONS ON NUMBER SIX.

SO I'VE BEEN INFORMED

THAT WAS TABLED.

THAT WAS THE QUESTION ABOUT THE METERS.

DO YOU, IF YOU WANT TO INSERT THAT NOW? YES, SIR.

MR. CHAIR, UH, NATASHA, JUST MAKE SURE THAT, UH, KELLY, UH, WE'VE HAD BOOKS SELLING ONLINE AND HE'S READY TO ANSWER YOUR QUESTIONS REGARDING METERS DISTRIBUTED.

IT WOULD NOT BE POSSIBLE, ESPECIALLY DURING WINTER, OUR AMI WITH YOUR ARNOLD WAY, UH, MATH CALCULATIONS BASED UPON A CERTAIN TERRITORY ON HOW WE DO IT.

SO AS OF COURSE, FOR HIM TO ANSWER YOUR QUESTIONS AND WE WOULD LOVE TO HAVE YOU MOVE APPROVAL, BUT, UH, HE WAS NOT PRESENT UNFORTUNATELY FOR THE, FOR THE PREVIOUS QUESTION.

SO YOU HAVE TO REITERATE, OKAY.

THE ONES THAT I REMEMBER WE WERE TALKING ABOUT LOAD SHED, WELL, THERE'S THE IMPEDIMENT.

IF YOU'RE INVESTING A LOT OF MONEY MAKING IT WHERE YOU HAD VERY FINE GRANULARITY AND LOAD SHED.

AND SO CAN YOU DESCRIBE WHAT SOME OF THE LIMITATIONS ARE ON USING IT? BECAUSE I'VE GOTTEN FEEDBACK PERSONALLY AND OTHER PEOPLE.

THIS IS A COMMON QUESTION, AND WE'VE TALKED ABOUT THE BEGINNING IN AN FAQ SOMEWHERE THAT GOES INTO IT FOR FOLKS, BUT CAN YOU EXPLAIN MORE ABOUT WHY HE DOES NOT BELIEVE IT'S THE RIGHT TECHNOLOGY INVESTMENT TO HAVE FINE GRAIN LOAD SHED WITH THE METERS? UM, I DON'T KNOW THAT WE A, UH,

[01:40:01]

UM, I WON'T FLY, UM, IF YOU WERE TO NEED TO DO IT RIGHT, THE PROBLEM IS WE HAVE, UH, A NUMBER OF THOUSAND , THERE'S ONLY DOMAIN, UH, ADDED INFORMATION OR REQUEST THEY CAN GET THROUGH THE FALL OR FALL.

WE WERE PAID A HUNDRED THOUSAND TIME.

A LOT OF THEM GO THE PAIN, UM, UH, AND, UM, THREE EVOLVEMENT OF MEDICATION, FIND IT OUT, EACH NEEDED TO BE COMMAND.

THEN EITHER OR A REQUEST, REMOTELY DISCONNECT SOMEONE THROUGH IT, UH, TAKE THE TIME TO LIVE AS THEY CALL IT 300 BACK FOR FIVE MINUTES, YOU CAN'T GET YOUR PACKAGE IN FIVE MINUTES, UH, ACCURATE, RIGHT? WE HAVE THAT POINT IN TIME RIGHT NOW, THE ONLY MEANS THAT ARE AVAILABLE WIDELY AVAILABLE ON THE MARKET TODAY ARE, UH, AND OR RESIDENTIAL HAD A PRODUCT FOR A NUMBER OF, YOU'RE PROBABLY AWARE OF .

UM, WE ARE ABOUT 35 TO 10 OF OUR WAY THROUGH THAT PROJECT.

A LOT OF UNKNOWN, BUT NOT INCLUDE ORIGINAL METERS OR, UH, YOU KNOW, LARGE, VERY LARGE RESIDENTIAL HOME THAT COME ON OUT THERE RIGHT NOW.

UH, BUT, UH, OR THERE WILL BE OUT THERE THAT HAVE THAT CAPABILITY.

UH, BUT IT NOT SAY NOT ALL, NOT ALL REPLACEMENT ARE REMAINING ROUGHLY 100,000.

COMPLETELY, UH, YOU KNOW, YOU'RE JUMPING AROUND A LITTLE BIT.

I APOLOGIZE, UH, SORT OF GIVE YOU THE BASIS ON HOW THEY NEED THAT AVAILABLE.

UM, MORE EFFECTIVELY FOR US TO BE ABLE TO ROTATE CURLING INDEED ENOUGH, MAKE A LOT MORE, UH, AMOUNT OF TIME, UH, IS NOT OWL WHAT WE HAD TO SHED OR A WINTER STORM HERE.

SO WE FEEL LIKE WE MIGHT BE ABLE TO BE, UH, IF IMPLEMENTED, IF EVERYTHING WORKED OUT , UH, AND THEN ROTATE THERE WITH A THIRD MAN AND SAVE THE AMOUNT OF APRIL FEMALE, LOT ON HIS EAR, AND THEN GRADUALLY IMPORTANT NOW BASED UPON THE POPULATION THAT WAS THERE IN THE BACK OF THE ENVELOPE, UH, CALCULATING THE PROBLEM IN THE WAY THAT YOU'RE GOING TO WHERE WE CAN BASICALLY GET A RIDE AND BACK WE'VE GOT A MEGAWATT, WOULDN'T BE ENOUGH.

SO THE TECHNOLOGY IS NOT THERE IN THE PURINA, IN, AT ALL, ANY FROM THERE, WHETHER IT'S RF CELL KNOWING THE, WHAT HAVE YOU TO BE ABLE TO EFFECTIVELY, WE HAVE LIMITED ALIGNMENT.

AND THAT'S WHY, AGAIN, THE DEVELOPMENT PROGRAM

[01:45:03]

HERE, UH, IN PRACTICE, THERE'S A NUMBER OF DIFFERENT .

SO ARE THESE BEHAVIORS, UM, ARE THEY VEHICLE TO GRID? THEY HAVE THAT CAPABILITY.

UH, I, I'M NOT SURE WHAT, UH, YEAH, WE DO HAVE A VEHICLE TO GRID IS A FEDERAL PROGRAM.

UH, SO I'M JUST TALKING ABOUT BEING THEN, YOU KNOW, , UH, VEHICLE, VEHICLE, UH, YOU KNOW, UH, UH, YOU KNOW, UM, I'M SORRY TO HEAR YOU.

SO BASICALLY THE METERS ARE ALL BI-DIRECTIONAL AND YOU DO THAT TODAY.

I THOUGHT WITH PAINT, EVEN THOUGH YOU HAVE A SEPARATE PV METER, IT STILL GOES THROUGH THE MAIN METER.

I COULDN'T GET MY MUSIC BETTER.

AND GOES BACK.

SO IT'S, BI-DIRECTIONAL GOOD ASKED ABOUT EATING READY METERS.

IS THAT, WHAT IS THAT WHAT YOU'RE REALLY WE'RE TALKING ABOUT VTG OR THAT'S WHAT I TRIED TO GET TO BE STORING ENERGY IN THE VEHICLE ITSELF.

UM, AND THAT CAN BE PULLED OFF DURING THE WEEK WHEN WE NEEDED THE VEHICLE.

THAT'S WHAT I'M TALKING ABOUT AND HOW TO GET IT TODAY.

UH, NOT FAR FROM HERE.

, UH, UH, UH, UM, SOME ENGINEERS AND DEBBIE KIMBERLY'S GROUP WAS WORKING ON AN INTERESTING PILOT, SMALL SCALE.

I THINK IT WAS USING ZIGBEE AND THE ORIGINAL WOUNDS.

IT WASN'T READY FOR PRIME TIME.

IS THERE ANYTHING NEW ON THESE NEW METERS? ARE THEY ALL ZIGBEE VERSUS WIFI CONNECTED TO ONE AT TECHNOLOGY MATURES? YOU COULD HAVE DIRECT READING THROUGH A DEVICE AT THE HOME AND GET THE INFORMATION OFF OF THE METER VERSUS HAVING TO RUN IT THROUGH THE AMI BACK, HAUL THROUGH A SMART METER, TEXAS, LIKE A FAIR, DOES IT HAVE A CB RADIO? AND IS THERE ANY PROGRESS ON THAT TYPE OF DATA ACQUISITION, UM, UH, THAT TECHNOLOGY INVOLVED, UH, AND THE, UH, AND THEN CONTROL THE NETWORK AND ALSO, UH, UH, , UH, THE PILOT AND, UH, A LOT OF THE CHALLENGES AROUND CUSTOMER, UH, THE PARENT AND THE LEADER WITH THE, UH, , UH, THROUGH THE, OF THE HOME, UH, UM, TOOK ONE OF THE RAPE MY OWN LIFE.

I LIVE HERE WITH MY KNEES.

I, I LIKED IT.

I KNOW, BUT, YOU KNOW, NOT ALL, BUT IN THAT CASE,

[01:50:01]

WE FOUND THAT THERE WAS OTHER PEOPLE IN THE PILOT AT THE END, AT THE END OF THE CALL, I PUT ON MAYBE A LITTLE BIT WITH THE RAPE, MY PARENTS, UH, WE HAD TO BE DIVIDED AND IT WAS, UH, YOU KNOW, AND I GUESS THEY WASN'T AN ISSUE FOR A DAY WITH ERIC DIRECTLY, BUT MAYBE IF YOU, UH, I THINK THE DYNAMICS OF THE, THE USER, NOT THE PROVISION, UH, THEIR APPLICATION , THEY HAVE TO GET IT OPEN UP, COMMUNICATE IN THAT THE BIGGIE RADIO THING AND THE METER, BUT ALSO IN THE DEVICE, AND THEN OFTEN INTERVENE AIR OR ALLOW AIR DRIED ALL ME ANYMORE.

THERE ARE, UH, WHO HAD, UH, DEVELOPED, UH, AND THEN SIX MONTHS LATER, THEY, THEY HAD ON, THEY HAD ABANDONED THAT MOLDING AND THAT PROGRAM.

SO, UH, I THINK THE BATON GLORIA GO BACK TO US MARKET.

UH, THEY MIGHT BE OUT LIKE MR. I APPRECIATE THE ANSWERS.

AND I KNOW THEY'RE THINKING, AND MAYBE SOME MORE QUESTIONS I WOULD ENCOURAGE YOU TO PERHAPS TIGHTEN RESPONSES.

AND I'D ALSO LIKE TO JUST DO A TIME CHECK FOR THE COMMISSION MENTIONED THAT IT'S EIGHT O'CLOCK AND WE DID STILL HAVE TWO BRIEFINGS REMAINING.

I THINK WE COULD MOVE FORWARD ON THIS AND THEY GET ALL THE QUESTIONS AND THEN SOME TAKEN CARE OF JUST A QUICK QUESTION THAT WAS RAISED AT NOT AS ARE THESE FOR PURPOSES OF THIS CONTRACT.

ARE THESE REPLACEMENT MATERS OR ARE THEY CRITICALLY NEEDED TO MEET NEW NEW CUSTOMERS MOVING IN NEW SUBDIVISIONS? A LOT.

THE BATHROOM I AM ON ONE WAS DOWN.

HOW ABOUT, DO WE PUT THIS BACK IN THE TABLE TO TAKE A VOTE? DO WE HAVE A MOTION? I'LL MOVE TO THE SECOND.

LET'S VOTE.

UH, KAREN AND ERIC WAS HERE OVER HERE.

EXCELLENT.

SO WE HAVE UNANIMOUS HERE, PLUS KAREN, WHAT IS YOUR BOAT? OKAY, SO JEFF, YOU GOT THAT, YOU GOT THAT OFF THE TABLE, AND THIS DOES NOT PREVENT US FROM DISCUSSING METERS IN THE FUTURE.

NO.

IS NUMBER 24TH QUARTER OPERATIONS BRIEFING UH, COMMISSION CHAIR, UTILITY COMMISSION.

SO NEXT

[20. 4th Quarter Operations Briefing]

MY NAME IS SIDNEY JACKSON.

I'M THE DEPUTY GENERAL MANAGER AND CHIEF OPERATIONS OFFICER.

AND IT'S MY PLEASURE TODAY TO PRESENT THE Q4 OPERATIONS REPORT, AS YOU ARE WELL AWARE OF THE Q4 OPERATIONS REPORT IS A, NOT ONLY A TIMELY REPORT, BUT IT'S CRITICAL IN TERMS OF ITS TIMEFRAME.

AS THERE REPRESENTS JULY, AUGUST, AND SEPTEMBER AND IMPORTANT TIMEFRAME FOR ENERGY MARKETS IS AS THAT IS WHERE, UH, DEMAND IS AT ITS PEAK AND ENERGY PRICES GENERALLY ARE CUSTOMARILY, UH, AT ITS PEAK AS WELL.

UM, MOVING TO THE NEXT SLIDE, PLEASE.

OUR AGENDA TODAY IS ESSENTIALLY POWER SUPPLY OPERATIONS ANALYSIS OF AUSTIN ENERGY LOAD.

WE'LL TAKE A LOOK AT RENEWABLE GENERATION

[01:55:01]

AND SYSTEM RELIABILITY, UH, AS WELL, TRADITIONAL OPERATIONS, UH, DISCUSSIONS SLIDE NUMBER FOUR, PLEASE.

THIS IS AFFIRMATION THAT POWER SUPPLY PERFORMANCE REMAINS EXCEPTIONALLY HIGH FOR THE QUARTER.

AS YOU CAN SEE ON THE RIGHT HAND COLUMN IS NEAR A HUNDRED PERCENT FOR SOME KEY GENERATION FACILITIES, A RECALL IN THE LAST OR THE PREVIOUS QUARTER.

I MENTIONED THAT WE WERE IN THE MIDST OF A SPRING OUTAGES.

THOSE OUTAGES HAVE PREPARED US FOR THE KEY SUMMER SEASONS.

YOU CAN SEE THOSE AVAILABILITIES ARE EXTREMELY HIGH, NEAR A HUNDRED PERCENT ACROSS THE BOARD.

UM, MOREOVER AND EQUALLY IMPORTANT.

THOSE GENERATION FACILITIES, ENERGY MARKETING, RISK MANAGEMENT AND PORTFOLIO OPERA MATE, OPERA OPTIMIZATION OVER THIS KEY TIMEFRAME AS WELL.

SLIDE NUMBER FIVE, PLEASE.

THE NEXT ONE, LOOKING AT THE ANALYSIS OF LOAD POWER GENERATION BY FUEL TIME, I'D LIKE TO EMPHASIZE THE GRAPHIC ON THE LOWER LEFT.

UNFORTUNATELY, WE'LL HAVE TO UPDATE THIS GRAPHIC, BUT THE, THE LOWER LEFT GRAPH SHOULD SHOW THAT WE ALMOST SET A SYSTEM PEAK FOR THE FOURTH QUARTER OF THIS YEAR.

WE'RE JUST A FEW HUNDRED MEGAWATTS SHY ON THE RIGHT-HAND SIDE AS WELL NEEDS TO BE UP.

NO, THE RIGHT-HAND SIDE IS CORRECT.

THE LOWER RIGHT ARE NUMERABLE GENERATION AS A PERCENTAGE BECAUSE CONSUMPTION WAS 42% LOOKING BACK TO LAST QUARTER.

THAT WAS AT 52%, SO A LITTLE BIT DOWN, BUT THAT COULD BE EXPECTED AS THE DEMAND WAS HIGHER FOR THE QUARTER.

NEXT SLIDE.

CAN, CAN WE GET BACK TO THE SLIGHTEST SECOND? TO ME IT LOOKS LIKE DEMAND ONE DOWN.

LIKE I SAID, THAT GRAPH OTHER GRAPHS INCORRECT.

AND WE WILL UPDATE IT.

UH, MY APOLOGIES THERE, UH, BUT YOU'RE RIGHT.

THE GRAPH, THE GRAPH IS IT SHOULD GO UP THAT LAST PART SHE'S GOING UP INSTEAD OF DOWN, UH, TOWARDS THE LEFT, WE WERE JUST SHY OF AN ALL TIME PEAK EQUIVALENTLY.

UH, A COP WAS ALSO, UH, AS A MARKET HOLE WAS JUST SHY OF AN ALL TIME PEAK, UH, LOOKING AT SYSTEM RELIABILITY METRICS, ESSENTIALLY CONSISTENT WITH QUARTER FOUR OF 2020, UH, NOT MUCH CHANGE WITHIN, UH, A NORMAL EXPECTED BANDWIDTH.

UH, NEXT SLIDE, PLEASE LET'S STAY ON THAT SIDE.

LET'S STAY ON THAT SIDE.

SO WHEN ARE WE GOING TO SEE IT COMING DOWN INSTEAD OF KEEP GOING UP? I THINK IF YOU RECALL, IN THE SPRING, WE SAW IT GOING DOWN AS COMPARED TO THE SPRING QUARTER, THE PREVIOUS YEAR.

UH, SO THIS IS JUST LOOKING AT ONE QUARTER TO A PREVIOUS QUARTER AND PREVIOUS, AND IN ANOTHER YEAR, UM, I WILL SAY COMMENSURATE OR COMPARED TO OVERALL TEXAS NUMBERS.

THESE NUMBERS ARE QUITE GOOD.

UH, IN THE FUTURE, CAN WE SEE MULTIPLE QUARTERS? YOU KNOW, A LONGER-TERM TRAIN ON THIS SO WE CAN SEE WHERE YOU'RE TALKING ABOUT NEXT SLIDE, PLEASE.

EXCELLENT.

ALL RENEWABLE GENERATION CONTINUES TO BE ROW PLUS DURING THE QUARTER, IN TERMS OF PERCENT OF LOADS YOU CAN SEE WAS NOT ONLY GREATER THAN 40%, AGAIN, ROBUST GENERATION FOR A QUARTER.

YOU CAN SEE IN MARCH, WE SET A RECORD AT 70% THERE FOR THE MONTH OF MARCH.

NEXT SLIDE PLEASE.

BID ON OUR RFPS CONDITION, MONITORING THE INFRASTRUCTURE BILL WITH OUR TRADE ASSOCIATIONS UP IN WASHINGTON, DC.

UM, LOOKING AT OUR VITAL ENVIRONMENTAL FOCUS, WE CONTINUE TO MAKE INVESTMENTS AS THE SLIDE INDICATES.

UH, WE HAVE NEW INVESTMENTS, NEW, UH, SO NEW, RENEWABLE PRODUCTION EXPECTED, UH, BY THE END OF THE YEAR, THE ARAGON SOLAR AT 180 MEGAWATTS ON, AND THE PANDORA SOLAR AT 250 MEGAWATTS.

AS A REMINDER, WE CALL LAST QUARTER, I PRESENTED THE GULF WIND, UH, AT 170 MEGAWATTS THAT WAS OPERATIONAL IN MAY AND THEN EAST BLACK LANDS, UH, LOOKING FROM MAY TO THE END OF THE YEAR, ESSENTIALLY 750 MEGAWATTS OF INCREMENTAL, UH, RENEWABLE GENERATION, WHETHER IT BE WINTER, SLOWER, WINTER SOLAR IN SUMMARY, AUSTIN ENERGY IS DEMONSTRATING CONTINUED INVESTMENT IN RENEWABLE RESOURCES.

A QUICK QUESTION IN THAT DOES THE RECENTLY PASSED INFRASTRUCTURE PLAN HAVE MONEY FOR, UM, OFFSHORE WIND, UH, UH, TO BE DEVELOPED THAT YOU KNOW OF THAT IS LOOKING INTO THAT GENERALLY OUR RFPS ARE OPEN, THEY'RE NOT CLOSED OFF SHORE WIND.

UM, SO I DON'T KNOW IF THAT ANSWERS YOUR QUESTION THERE ENABLED TO

[02:00:01]

NEXT SLIDE, PLEASE LOOKING AT A DISTRICT COOLING AUSTIN ENERGY CONTINUES TO EXAMINE EFFECTIVE AND EFFICIENT CAPACITY ADDITIONS.

HERE WE SHOW, UH, THE DOWNTOWN NETWORK DISTRICT COOLING PLANT NUMBER THREE, IT'S IN ITS FINAL PHASES, AUSTIN COMMUNITY COLLEGE NETWORK, CAPACITY ADDITIONS, NEARING COMPLETION, AND THE DOMAIN DISTRICT COOLING, UH, INCREMENTAL WORK TOWARDS THAT COMPLETION AS WELL.

SO AGAIN, THE EFFECTIVE AND EFFICIENT CAPACITY ADDITIONS WHERE IT MAKES SENSE AND CONCLUDING A LIFE TO SPEAK TO THE NEXT SLIDE, READ RESILIENCE.

AND JUST LIKE TO MENTION ON THE BOTTOM, THE TRANSMISSION SYSTEM OF THE FUTURE, UH, AS OUR REQUIRED TRANSMISSION STUDY AND CONSULTANT SELECTION PROCESS IS STILL PROGRESSING, AND THAT IS GOING TO BE, UH, IMPORTANT DETERMINANT INFORMING OUR GENERATION AND RESOURCE PLAN, UH, COMMITTEE CHAIR THAT CONCLUDES THE AUSTIN ENERGY Q4 REPORT.

I'D LIKE TO MOVE INTO PROVIDING A BRIEF OVERVIEW OF THE AUSTIN ENERGY AFTER ACTION REPORT.

CAN I MAKE THIS KIND OF NAKED STATEMENT, WHICH HAS KIND OF A QUESTION JUST BECAUSE THERE WAS A QUESTION EARLIER ABOUT THE TIME OF THE RESOURCE PLAN, AND I DID RUN DOWN ANOTHER AUSTIN ENERGY EMPLOYEE TO REMIND OURSELVES OF THE DEADLINE.

AND IF YOU REMEMBER THE COMPROMISE WE HAD, AND YOU TELL ME IF I'M WRONG IS AFTER THE TRANSMISSION STUDY IS DONE.

WE AS THE EUC AND WE GET AN UPDATE FROM OUR STRATEGY, WE WILL DECIDED SOMETIME AROUND THE END OF 2022, WHETHER TO START AN UPDATE TO THE RESOURCE PLAN IN 23, OR WHETHER TO WAIT A FEW YEARS.

AND THAT, THAT WAS CONFRONTING TO ME BY ERICA, THAT THAT WAS, THAT WAS SORT OF THE IDEA THAT WE WOULD, WE WOULD WAIT UNTIL THE TRANSMISSION STUDY COMES OUT.

SEE IF IT MADE SENSE TO DO A WHOLE NOTHER RESOURCE PLAN BASED ON THOSE FACTORS OR WAIT A FEW ADDITIONAL YEARS.

THAT'S THE WAY I RECALL IT TO, YES, AT THIS TIME SHARE TRANSITS ACTION REPORT.

UM, THE AFTER-ACTION REPORT REPRESENTS A FORMAL AND COMPREHENSIVE REFLECTION OF A WIDE RANGE OF REQUIRED ACTIONS AND DELIVERABLES ON THE I ON BEHALF OF BOSTON ENTRY, AUSTIN ENERGY, AS WE'RE ALL WELL AWARE, THE POLAR VORTEX BROUGHT DEVASTATING WEATHER CATASTROPHIC IMPACTS TO THE ERCOT REGION, UH, AND IMPACTED COMMUNITIES, UM, IN CITIES, UH, EVEN BEYOND THE TEXAS ERCOT BOUNDARIES, OUR AFTER ACTION ROOMS REPORT WAS DEVELOPED AFTER SEVERAL MONTHS, UH, AS STAFF COLLECTIVELY MET AND COLLABORATED AND DISCUSSED, UH, OUTCOMES RELATIVE TO THE FEBRUARY TEXAS STORMS. UH, WE DID, UH, COLLABORATE WITH THIRD-PARTY INDUSTRY EXPERTS, SUCH AS EVERY ELECTRIC POWER RESEARCH INSTITUTE, A LEADING ELECTRIC INDUSTRY CONSULTANT AND KNOWLEDGE BASE.

AND THEN ALSO REMIND YOU THAT, UH, IMMEDIATELY FOLLOWING THE FEBRUARY STORM AS THE BULK ELECTRIC SYSTEM RETURN TO TRADITIONAL ENORMOUS NORMALCY, AUSTIN ENERGY SPOKE IN MANY FORMS AS TO ITS ACTIONS AND OUTCOMES.

NEXT SLIDE, PLEASE.

THIS IS A TIMELINE HERE AT INNOCENT ESSENTIAL DISCUSSION PRIOR TO DELVING INTO THE DETAILS OF THE AFTER ACTION REPORT, UH, IN MOST RESPECTS, UH, THIS TIMELINE IS IN A CENTRAL PREREQUISITE DISCUSSION, AS IT HELPS TO INTERCONNECT THE MANY INTERDEPENDENT MOVING PARTS RELATIVE TO THE STORM AND AUSTIN AND ROSIE'S ACTIONS, AND ALSO RELATIVE TO ERCOT MANDATES TO AUSTIN ENERGY.

AND I'LL JUST TAKE A MINUTE OR TWO, JUST TO EXPLAIN THIS GRAPHIC.

UH, AS THE GRAPHIC SHOWS, THERE'S ESSENTIALLY THREE SECTIONS.

THERE'S A BLUE SECTION, FEBRUARY 11TH THROUGH 13 WITH THERE'S THE INITIAL STORM AND TRADITIONAL STORM RESPONSE, THE BLACK SECTION, FEBRUARY 14TH, THEN ALSO FEBRUARY 19TH, 20TH AND 21ST.

THOSE WERE SUBSEQUENT STORMS AND SUBSEQUENT RESTORATIONS, THE RED IMAGE MAGENTA SECTION FEBRUARY 15TH THROUGH THE 18TH REPRESENTS ERCOT MANDATED LOAD SHEDS AND IS BY FAR THE MOST SIGNIFICANT TIMEFRAME.

AND THEN WE HAD THE BLUE GRAPH ON THE BOTTOM, UM, THAT SUPERIMPOSED, AND THAT IS THE NET CUSTOMERS THAT

[02:05:01]

WERE OUTAGES AT ANY GIVEN TIME.

SO IF YOU LOOK AT THE OVERALL TIME FRAME, IT CLEARLY REFRESH, REFLECTS THE DIFFERING AND REPEATED WAVES OF ADVERSE WEATHER TO INCLUDE THE POLAR VORTEX FREEZING TEMPERATURES PROLONGED OVER A PERIOD OF TIME, WAVES OF WEATHER BROUGHT BY, UM, ICE SNOW WHEN CRYSTAL AND PRECIPITATION ALL RESULTING IN UNIQUE IMPACTS TO THE HIGH VOLTAGE GRID AND THE ELECTRICAL DISTRIBUTION SYSTEM.

SO LET'S FOCUS ON THE BLUE AREA FOR JUST A MOMENT, 11 FEBRUARY 11TH THROUGH 13TH, THAT TIMEFRAME ESSENTIALLY REPRESENTS THE INITIAL STORM OR BETTER SET THE INITIAL SEVERE STORM AS THE POLAR VORTEX RESULTED IN 35,000 CUSTOMERS WITHOUT POWER ON FEBRUARY 11TH, BUT RESTORATION WAS VIRTUALLY COMPLETED BY FEBRUARY 13TH AND THE EMPHASIS ON VIRTUALLY ALL COMPLETED BY FEBRUARY 13, THE RESTORATION, UH, BY FEBRUARY 13TH WAS THE RESULTS OF DILIGENT WORK OF LINE WORKERS, VEGETATION MANAGEMENT, FIELD CREWS, A WIDE ARRAY OF SUPPORT STAFF TO INCLUDE CUSTOMER SERVICES, TECHNICAL TEAMS WORKING CONTINUOUSLY AROUND THE CLOCK AND VERY ADVERSE CONDITIONS.

THE BLUE LINER GRAPHS SUPERIMPOSED, AS I MENTIONED, SHOWS THE NUMBER OF CUSTOMERS.

AND AGAIN, BY FEBRUARY 14TH, WE WERE VIRTUALLY RESTORED, AS YOU CAN AFFIRM BY THE BLUE LINE, RECALL THAT I MENTIONED THAT THE STORM WAS DYNAMIC, UM, FEBRUARY 14TH BROUGHT NEW STORMS, NEW SNOW, NEW HIGH WINDS RESULTING IN INCREMENTAL ALLERGISTS.

AND AS YOU CAN SEE, AS FEBRUARY 14TH, UH, CAME IN ONCE WE FLUCTUATED BETWEEN OUTAGES OF NOMINALLY, 112 HUNDRED AT ITS PEAK TO LESS THAN 20 MINUTES, MINUTE MINIMUM, DEPENDING UPON A MOMENT IN TIME, DOMINIC INSENSITIVE OF AS TENSITY OF THE STORE AND WHERE WE WERE IN THE RESTORATION PROCESS.

AGAIN, AUSTIN ENERGY'S FIELD TEAMS WORKED AROUND THE CLOCK AGAIN IN DANGEROUS CONDITIONS ARE RESTORING, UH, ELECTRICAL SERVICE.

NOW LET'S PAUSE HERE FOR A MOMENT UP TO THIS POINT IN TIME, FEBRUARY 11, THROUGH 13, UP TO THIS POINT IN TIME, THIS STORM HAD THE LOOK AND FEEL OF A TRADITIONAL SEVERE STORM, UH, FOLLOWED BY THE ACCOMPANYING OUTAGES WITHOUT THE ERCOT LOAD SHED THAT WOULD FOLLOW.

AND THAT BEGAN THE NEXT DAY ON FEBRUARY 15TH, THIS FEBRUARY WINTER STORM WOULD HAVE LOOKED COMPLETELY DIFFERENT IN TERMS OF ITS MAGNITUDE AND IN TERMS OF HIS COLLECTIVE IMPACT ON AUSTIN HOUSEHOLDS AND ON AUSTIN COMMUNITIES.

SO LASTLY, LET'S EXAMINE THE ACTUAL LOAD SHED.

THE TIMELINE ON FROM FEBRUARY 15TH TO 18TH IS PREVIOUSLY COMMUNICATED WAS THE MOST SEVERE AD-WORDS ADVERSE WEATHER CONDITIONS, PERSISTENT, BUT MOST IMPORTANTLY, ERCOT ELECTRIC RELIABILITY COUNCIL OF TEXAS ISSUED EMERGENCIES, DIRECTIVES REQUIRING US AND ENERGY, UH, TO SHED LOAD, TO SHED LOAD.

AND THOSE OF YOU NOT FAMILIAR WITH ERCOT, UH, THEY HAVE THE OVERALL HIGH VOLTAGE ELECTRIC GRID RELIABILITY AND OPERATIONAL AUTHORITY IS AUTHORIZED BY THE PUBLIC UTILITY COMMISSION.

AND DURING THIS TIME ERCOT DIRECTED AUSTIN ENERGY TO SHED, OR DE-ENERGIZE OVER 200,000 CUSTOMERS IN THEIR EFFORTS TO PRESERVE THE HIGH VOLTAGE GRID, BRINGING IN LINE, UM, STATEWIDE ELECTRICAL DEGENERATION, COMMENSURATE WITH STRAIGHT STATEWIDE ELECTRICAL DEMAND.

AS THIS GRAPH SHOWS, YOU CAN SEE THE BLUE GRAPH OF VERTICAL RISE.

THE NUMBER OF CURTAILED CUSTOMERS JUMPED ORDERS OF MAGNITUDE.

ON FEBRUARY 15TH, WE WENT FROM NORMALLY A FEW HUNDRED CUSTOMERS OUTAGE TO APPROXIMATELY 200,000, JUST FOR EMPHASIS.

ONCE THE ERCOT LOAD SHED DIRECTORS WERE ISSUED AUSTIN ENERGY COMPANIES WITHOUT POWER INCREASE FROM A FEW HUNDRED TO NOMINALLY, 200,000, AND ALSO LET'S BE CLEAR.

ERCOT LOAD SHED MANDATES WERE REPLICATED STATEWIDE ACROSS THE ERCOT REGION AND OTHER ELECTRIC UTILITIES AND SYSTEMS WERE IMPACTED SIMULTANEOUSLY AUSTIN ENERGY, LIKE MANY OTHER UTILITY UTILITIES HAS PROCESSES IN PLACE TO ROTATE OUTAGES AND STOOD, READY TO EXECUTE AS WE HAVE DONE SUCCESSFULLY IN THE PAST.

HOWEVER, THE DEPTH AND SHEER VOLUME OF THESE LOAD SHED DIRECTORS WERE SO LARGE THAT OUTAGE ROTATION WAS NOT POSSIBLE.

AND THEN LASTLY LOOKING AT TOWARDS THE REAR END OF THE TIMELINE, AS WE APPROACHED, UH, FEBRUARY 17TH OR COD, UH, ALLOWED US TO START RESTORING LOAD.

AND THEN EVENTUALLY, UH, FEBRUARY 19TH, THEY CEASED, UM, THEIR

[02:10:01]

EMERGENCY OPERATIONS LEVELS AND WE WERE ALLOWED TO, UH, FULLY RESTORE IN SUMMARY.

ALL THIS IS TO SAY THE COMPLEXITY, THE EXTREME SEVERITY, THE DYNAMIC NATURE OF THE FEBRUARY WINTER STORMS WAS DAUNTING COMPLEX, AND OBVIOUSLY DEVASTATING OUTCOMES.

OUR AFTER ACTION REPORT CAPTURES THESE COMPLEXITIES.

NEXT SLIDE, I TALKED ABOUT THE COMPREHENSIVE NATURE OF OUR ACTION ISH ACTION REPORT IN TERMS OF SCOPE.

UH, THE AFTER ACTION REPORT IS ARRANGED IN OBSERVATIONS, LEVERAGING AN INCIDENT REPORTING FRAMEWORK THAT IS OFTEN USED BY FEMA.

AS YOU CAN SEE ON THIS GRAPHIC, MANY OF THE OBSERVATIONS ARE LISTED ON THE TABLE OF CONTENTS.

THAT MAY BE HARD TO READ, BUT JUST TO READ A FEW OF THEM OBSERVATION, NUMBER ONE IS COMMUNITY COMMUNICATIONS.

OBSERVATION.

NUMBER THREE IS MEDICALLY VULNERABLE REGISTER NUMBER FIVE, ERCOT DIRECTOR LOAD SHED NUMBER SEVEN RESTORATION PROCESS.

AND ON THIS SLIDE, YOU CAN SEE NUMBER 17, OCCUPATIONAL SEVENS SAFETY.

NEXT SLIDE PLEASE.

THAT REACHES OUT AND COORDINATES WITH THEM.

LOOKING AT OBSERVATION, NUMBER ONE IN MORE DETAIL, UH, THE FRAMEWORK OF THE REPORT SHOWS A DESCRIPTION OF THE OBSERVATION IN THIS CASE, A SUMMARY OF THE AUSTIN ENERGY, UH, COMMUNICATION THAT WAS PROVIDED TO THE COMMUNITY AND VARIOUS MEDIA, WHETHER IT WAS BEFORE, DURING OR AFTER THE FEBRUARY WINTER STORM ALSO PROVIDED.

AND IN TERMS OF CONTEXT IS BREAKDOWN INFORMATION AND THEN FOLLOW UP ACTIONS AS WELL.

AND YOU CAN SEE THAT, UH, METHODOLOGY, UH, CARRIED FORWARD.

UH, AND WHAT'S THERE ON THE SCREEN.

NEXT SLIDE, PLEASE.

LOTS TO TAKE A LOOK AT SOME OF THE KEY TAKEAWAYS FROM THE AFTER ACTION REPORT.

FIRST OFF, STARTING WITH AREAS THAT WORKED WELL.

AND I JUST LISTED A FEW.

WE SAW STABILITY IN OUR CORE ENERGY CONTROL SYSTEMS. THESE TECHNOLOGIES ARE CRITICAL AND ARE HIGHLY RELIED UPON, ESPECIALLY BY OUR CONTROLLER PERSONNEL.

ADDITIONALLY, WE WERE ABLE TO SUSTAIN CRITICAL LOADS FOR THE DURATION OF THE FEBRUARY STORMS, CRITICAL LOADS, SUCH AS MEDICAL FACILITIES, TRAUMA CENTERS, GOVERNMENT AGENCIES, SUCH AS POLICE, FIRE, AND EMERGENCY RESPONDERS.

ALSO, WE WERE ABLE TO PROTECT RETAIL CUSTOMERS FROM EXTREME PRICE VOLATILITY IN THE ERCOT ENERGY MARKET.

DURING THIS TIMEFRAME, AS THIS PROTECTS OUR ELECTRIC RATES LEVERAGING OUR ENERGY MARKET RISK MANAGEMENT POLICIES AND PROCEDURES.

IN ADDITION TO OUR ELECTRICAL GENERATION PORTFOLIO OR POWER PLANTS WERE A STRONG CONTRIBUTOR AS THESE FACILITIES ASSISTED ERCOT ELECTRIC GRID RED FROM A SUPPLY PERSPECTIVE, BUT THEY ALSO AIDED IN OUR ENERGY MARKET RISK MANAGEMENT AND PORTFOLIO OPTIMIZATION.

DURING THAT TIMEFRAME, WE ALSO WERE ABLE TO PROVIDE BLACKSTAR CAPABILITY IF THAT WAS NEEDED.

AND THAT'S AN ABILITY TO RESTART OR REENERGIZE THE ELECTRIC TRANSMISSION GRID IF IT WERE NEEDED.

UH, ALSO OCCUPATIONAL SAFETY, UH, WAS A AREA THAT WORKED WELL IS WE DID NOT INCUR A SINGLE SERIOUS INJURY OR OSHA RECORDER PORTABLE DURING THE TIMEFRAME AND OUR INCIDENT COMMAND STRUCTURE AND ABILITY TO WORK A, TO SUPPORT A REMOTE WORKFORCE DURING THE FEBRUARY WINTER STORM, UH, WAS AN AREA THAT WORKED WELL IN ALLOWING US TO MAKE ONE QUICK QUESTION ON THE SECOND BULLET, THE CRITICAL LOAD LIST.

SO THAT WOULD BE MORE INSTITUTIONAL SETTINGS LIKE MEDICAL FACILITIES OR EMERGENCY ROOMS THAT THAT WOULD NOT INCLUDE A CORRECT.

W DO WE HAVE A CRITICAL LIST FOR, UM, YOU KNOW, INDIVIDUALS WHO NEED ACCIDENT OXYGENATION OR MEDICAL EQUIPMENT? IS THAT, DOES THAT LIST EXIST? YOU MAY KNOW MORE ABOUT THIS THAN I DO.

I JUST, UM, I, ALL I KNOW IS I, I ATTEND CHURCH ACROSS THE WAY, AND WE HAD A WHOLE BUNCH OF OLD FOLKS, OLDER FOLKS THAT WERE IN AN APARTMENT, A LOT OF THEM WITH MEDICAL CONDITIONS WHO HAD NOWHERE TO GO.

UM, AND SO THEY CAME TO OUR CHURCH AND HUNG OUT THERE FOR A FEW DAYS.

UM, SO IT SEEMED LIKE THERE WERE A LOT OF PEOPLE WHO WERE, WHO I WOULD CONSIDER HAVE CRITICAL LOADS THAT WERE IMPACTED.

UM, SO I MEAN, I GUESS ONE QUESTION IS, DO WE NEED TO UPDATE OUR CRITICAL LOAD LIST? SO WE DO PERIODICALLY UPDATE OR CRITICAL LOAD LIST.

THE CRITICAL LOAD IS A BIG, BIG TERM AND ENCOMPASS A LOT OF, ONE OF THE THINGS YOU WERE TALKING ABOUT IS MEDICALLY VULNERABLE REGISTER.

AND BY THE WAY, THANK YOU IN YOUR ORGANIZATION FOR PROVIDING SOME TYPE OF WARMING CENTER OR HELP FOR THE COMMUNITY THAT IS ESSENTIAL.

ONE OF THE THINGS OUR DISASTER PREPAREDNESS GROUP SPOKE TO THURSDAY LAST WEEK IN FRONT OF THE CITY COUNCIL IS NEIGHBORS HELPING NEIGHBORS.

SO THANK YOU, UH, FOR THAT, UH, BUT MEDICALLY VULNERABLE REGISTER.

WE HAVE A CUSTOMER CARE GROUP

[02:15:01]

UM, BUT FOR, UM, CRITICAL LOADS WHERE WE HAVE VARIOUS CATEGORIES, THE HIGHEST CATEGORY WOULD BE POLICE, FIRE, GOVERNMENT CENTERS, MAJOR TRAUMA CENTERS IN THE LIGHT.

AND I DIDN'T MEAN IT'S A CRITICISM.

I WAS JUST TRYING TO GET A SENSE OF WHAT CRITICAL LOAD MEANS, UM, AND WHETHER THAT WOULD INCLUDE THOSE MEDICALLY VULNERABLE PEOPLE.

SO, AND THE PUC OUT THE PUC IS LOOKING AT AT THAT SAME DEFINITION OF MEDICALLY VULNERABLE AND WHERE OUR LIST THAT EMERGENCY MANAGEMENT SERVICES HAS THAT WE FOUND OUT DURING THE STORM KILLED.

BUT JET SKI DID A LOT OF WORK ON THIS, THAT THERE IS NO COORDINATION BETWEEN THE LIST OF EMERGENCY MANAGEMENT SERVICES HAS THAT THEIR SHARE UPS AND OTHERS HAVE ACCESS TO BECAUSE OF CONFIDENTIALITY REQUIREMENTS COULD NOT.

WE'RE UNABLE TO ACTUALLY REACH MANY PEOPLE WHO NEEDED HELP.

EXCUSE ME.

WE DO HAVE CARRY OVER GEN, UH, ARE, UM, MANAGES THAT AREA, SPEAK TO THAT AT ALL, OR PROVIDE A FEW COMMENTS ON THE MATTER OF VULNERABLE REGISTERED YES, CARRIE OVERTON, UH, DEPUTY GENERAL MANAGER OVER CUSTOMER CARE.

AND I START JUST, WHAT I THINK WAS A STATEMENT THAT COMMISSIONER CHAPMAN HAD MENTIONED, UM, THIS DEFINITION OF MEDICAL, OF CRITICAL, UH, TH THIS KIND OF CARE IS VERY DIFFERENT FROM PROTECTING THE CIRCUITS AND THE THINGS THAT YOU'RE HEARING FROM THE PRESENTATION, AS OPPOSED TO WHAT, WHAT DO WE DO AS A MATTER OF PROGRAM IN THE PROGRAM? WHAT WE MEAN IS WE MAKE DIRECT CONTACT WITH OUR CUSTOMERS.

WE START THEM TO GOING THROUGH THEIR, UM, THEIR PLAN, THEIR EMERGENCY PLAN.

THOSE EMERGENCY PLANS INCLUDE ALREADY STARTING TO DRAW OUT, UH, GET POWER TO, UH, ALL THEIR BACKUP BATTERIES.

UM, ALL THE KINDS OF THINGS THEY NEED.

WE MAKE, THEY HAVE A CONTACT PERSON THAT'S ON THAT LIST.

WE MADE SURE THAT THEY'RE IN REACH AND IF THEY NEED EARLY EVACUATIONS AND THEY NEED TO MOVE TO CENTERS, WE ARE ALSO PART OF THAT COORDINATION WITH THEM.

BUT DURING THIS PROCESS, MANY INDIVIDUALS DECIDED TO STAY IN THEIR HOMES, UM, AND THEY DID NOT WANT TO LEAVE.

AND SO THEN IT BECOMES ALSO THE SECOND PART OF THAT PROCESS IS WE TRY TO MAKE SURE WE CAN IDENTIFY NEIGHBORS AND THOSE THAT ARE CLOSE TO THEM, THAT CAN ALSO KEEP AN EYE.

THE DIFFERENCE HERE THAT WE EXPERIENCED, THAT WE HAD NEVER EXPERIENCED BEFORE WHEN THE ROADS WERE COMPLETELY UNTRACKABLE AND THE EMS SERVICES WERE COMPLETELY BACKED UP AT THE LEVEL OF THE STORM THAT SYDNEY HAD MENTIONED.

UM, NO ONE WE COULD NOT GET TO THESE CUSTOMERS AND NOR COULD THEIR EMERGENCY CONTACT PERSON GET TO THESE INDIVIDUALS.

THAT WAS THE BIGGEST DIFFERENCES, UH, IN, IN THIS PARTICULAR CASE.

HOWEVER, WE DO DO CALLS TO DO, UM, EMERGENCY, UM, CHECKS ON ALL OF THESE HOMES.

AND SO EVEN WHILE EMS, UM, IS IF THEY WERE HAVING TO BE DISPATCHED TO A HOME, WE HAVE INDIVIDUALS, UM, 24 7 CALLING THOSE CUSTOMERS TO MAKING SURE THAT THEIR CONDITIONS ARE NOT CHANGING.

AND JUST BY POINT OF CLARIFICATION, NOW, NOW MY MEMORY IS WORKING BETTER IN THIS PARTICULAR CASE, THIS APARTMENT BUILDING WITH A LOT OF PEOPLE, WITH MEDICAL OLDER FOLKS, WITH MEDICAL ISSUES, THE BACKUP GENERATION THEY HAD IN THAT BUILDING COMPLETELY, IT DIDN'T WORK.

SO THEY HAD A SYSTEM AS SOME SORT OF A DIESEL GENERATOR, AND IT JUST DIDN'T, IT DIDN'T FUNCTION.

THEY HADN'T KEPT IT UP AS THEY SHOULD HAVE, OR THE OWNERS DIDN'T.

SO THERE ARE THESE OTHER ISSUES THAT ARE, ARE COMPLICATED.

THAT CONTINUATION OF POWER, ONE DISCUSSION, AND THE SUPPORT SERVICES THAT WE PROVIDE WHILE THAT EMERGENCY IS OCCURRING IS MORE IMPORTANT.

PROGRAMMATIC DISCUSSION.

I HAD A QUICK QUESTION, THE SECOND POINT WHERE YOU SAY THAT YOU WERE ABLE TO SUSTAIN OUR CUSTOMERS ON CRITICAL LOAD LIST.

MY UNDERSTANDING IS THAT YOU HAD ACTUALLY IDENTIFY CIRCUITS, BUT HAVE CRITICAL LOAD ON THEM.

IS THAT CORRECT? AND SO HE HAPPENED TO BE NEXT TO A NURSING HOME.

YOU DIDN'T LOSE POWER.

THAT'S TRUE.

AND CAN YOU TELL ME WHAT PERCENTAGE OF THE CIRCUITS IN THE AUSTIN ENERGY SERVICE TERRITORY ARE CONSIDERED CRITICAL? IT'S MORE THAN 50%, ISN'T IT? I DON'T THINK IT'S THAT MUCH, BUT

[02:20:02]

I PREFER TO GET IT BACK.

BECAUSE IT'S MY UNDERSTANDING THAT IT WOULD BE IN LARGE PART BECAUSE OF THE NUMBER OF CRITICAL CIRCUITS THAT IMPACTED THE INABILITY OF AUSTIN TO DO ROTATING OUTAGES, UM, THAT IMPACTS IT AS WELL, FREQUENCY CIRCUITS, AS WELL AS ANOTHER INDICATORS.

THERE'S A VARIETY OF THINGS THAT IMPACT AND UNDER FREQUENCY, UH, REALIZING THAT DOWNTOWN, THIS, UH, AREAS, UH, UNDER FREQUENCIES ASSIGNED BY OUR ENGINEERING TEAM, IT'S JUST A PERCENTAGE OF LOAD REPRESENTED BY NUMBER OF CIRCUITS.

THERE'S A SPECIAL DESIGNATION FOR THE DOWNTOWN AREAS.

THEY'RE NOT.

AND CAN, COULD IT HAVE BEEN, UH, COULD IT HAVE BEEN, UH, COULD IT HAVE LOST POWER UNDER ANY? YEAH, SO THAT HAS BEEN, UH, ONE OF THE TAKEAWAYS.

IF YOU CAN SEE THEM AREAS FOR FOLLOW UP, UH, INCREASED COORDINATION OF LARGE INDUSTRIAL CUSTOMERS AND, UM, THERE'S COORDINATION WITH LARGE INDUSTRIAL CUSTOMERS, EXCUSE ME, DEVELOPMENT, A METHOD FOR REDUCING POWER USE ON DOWNTOWN NETWORK.

SO THAT IS, UM, ONE OF OUR AREAS FOR FOLLOW-UP OF, UH, TO ADDRESS YOUR QUESTION.

THE UNDERGROUND NETWORK ASSOCIATED WITH DOWNTOWN IS A DIFFERENT NETWORK.

IT'S NOT YOUR TRADITIONAL OVERHEAD RADIO AND HAS MADE FOR HIGH RELIABILITY.

UM, ONE THING THAT ISN'T WIDELY INDICATED IS THAT WE DID IN CHILDS IN MANY OF THOSE NON-CRITICAL LOADS THAT WERE ON THAT UNDERGROUND NETWORK AND ASK THEM TO REDUCE THEIR USAGE, PASS THEM TO DM OR CURTAIL THEIR LIGHTINGS, WHICH THEY DID ASK THEM TO REDUCE USAGE WITH THEIR HPAC AND ENERGY MANAGEMENT SYSTEMS, WHICH THEY DID.

UM, AND MANY OF THEM ALSO DID PROVIDE, UM, FLYERS TO THEIR, ESPECIALLY THE HOTELS IN REGARD TO ASKING HOTEL CUSTOMERS ALSO TO REDUCE USAGE SO THAT THERE WAS OUTREACH, BUT WE DO NEED TO DO MORE AND FIND MORE, ANY QUESTIONS FROM PEOPLE WHO REMAIN.

I HAVE QUESTION SO ON THAT RIGHT-HAND LIST, CAN WE FOLLOW UP OVER TIME ON THE DETAILS ON THAT? FOR EXAMPLE, THE SEXUALIZATION PLAN, YOU KNOW, THAT'S KEY, UM, AND THE LEDGE PUT IN PLACE, YOU KNOW, ACTUAL REQUIREMENTS FOR CRITICAL LOAD DESIGNATION, YOU KNOW, MAKING SURE WE DIDN'T TURN OFF NATURAL GAS PIPELINE INFRASTRUCTURE, ET CETERA, YOU KNOW, HAS THAT ALREADY BEEN COMPLETED? UM, THAT WAS, THERE WAS ALSO SOMETHING ABOUT THE TEXAS ENERGY, RELIABILITY COUNCIL, TURK, AND WHAT'S GOING ON WITH THAT? THE NEW LOW CHAIR, YOU MENTIONED THAT PERIODICALLY YOU LOOK AT CRITICAL LOADS, BUT I THINK THERE'S A NEW REQUIREMENT AFTER URI TO DO THAT.

AND FROM THE LEGISLATIVE BILLS EARLIER THIS YEAR, SO THAT SPECIAL, I GUESS, LOOK AT THE LOAD SHED PROCEDURES, WHEN WILL THAT BE COMPLETED? SO WE HAVE ONGOING COMPLIANCE OBLIGATIONS TALKED ABOUT THE LEDGE, MONITORIZATION OF POWER PLANTS.

I DO ONGOING A BENCHMARK FOR AS A NATIONAL LASH AND RELIABILITY COUNCIL.

SO FROM OUR COMPLIANCE OBLIGATIONS AND RULEMAKING ASSOCIATED WITH THE STORE, WHAT YOU HAVE MENTIONED ARE ONE OF MANY COMPLIANCE OBLIGATIONS THAT WE HAVE, WE WERE IN PROCESS OF WORKING ON.

SO ONE OF THE THINGS I THOUGHT FOR PHASE ONE WAS TO LOOK BACK AT THE 2011 RECOMMENDATIONS FROM THE FERC REPORT OR THE NERC REPORT.

THEY AT LEAST GET THE FLEET AFTER THAT AUSTIN ENERGY PERFORMED FAIRLY WELL.

IS THAT ALREADY BASICALLY DONE? SO PHASE ONE, 2011, UM, REQUIREMENTS MET AND THEN PHASE TWO, WHEN THEY GET SOME MORE DATA DELIVER ADDITIONAL OR YOU ALREADY COMPLETED, UM, I WOULD SAY THE WINTERIZATION HARDLY DRY ON THAT.

SO THERE'S A LOT OF COMPLIANCE WORK TO MAKE SURE WE MAKE THE SPIRIT AND THE LETTER OF THE LAW, EVEN THOUGH WE DID PERFORM WELL, BUT OTHER ORGANIZATIONS.

SO I HOPE THAT GENERICALLY ANSWERS YOUR QUESTION.

EVERYBODY'S INTERESTED IN FOLLOW-UP ON THAT.

MR. CHAIRMAN, CAN I, THERE'S A LOT TO UNPACK HERE AND I THINK IT COULD BE BENEFICIAL AND THIS IS AN ONGOING CONVERSATION, BUT TO COME BACK TO SOME OF THIS TONIGHT, WE HAVE A HEAVY AGENDA WITH A LOT ON OUR PLATES.

I'M WONDERING IF WE COULD CARVE OUT SOME TIME IN ONE OF OUR EARLY MEETINGS NEXT YEAR TO REVISIT SOME OF THESE POINTS AND MAYBE MR. JACKSON COULD COME IN AND WE COULD HAVE A LITTLE MORE DISCUSSION.

ABSOLUTELY.

WE ANTICIPATED AS MUCH.

YEAH, THAT'D BE GREAT.

UH, JUST TO KEEP THINGS MOVING AND THINK OF ONE MORE SLIDE AFTER THIS, AS YOU CAN SEE AREAS FOR FOLLOWUP ON THAT, EVEN JUST

[02:25:01]

FOR THE SAKE OF TIME.

UH, BUT THOSE ARE THINGS THAT WE RECOGNIZE THAT WE CAN DO BETTER WHERE WE CAN MOVE THE BAR FORWARD.

UM, COMMUNITY COMMUNICATIONS, TEXTS, ALERTS, OUTAGE MAP.

WE ARE INVESTING IS A PARTNER WITH ERCOT AS A KEY STAKEHOLDER.

LIKE ALL THE OTHER STAKEHOLDERS ARE KEY AND WE ARE PARTICIPATING IN, UM, REGULATORY FRAMEWORK DISCUSSIONS, UM, AND INCREASED COORDINATION WITH CITY DEPARTMENTS TO HELP THEM, UH, INCREASE THEIR RESILIENCY AS WELL.

NEXT SLIDE PLEASE.

AND I'LL JUST CONCLUDE WITH THIS PARTICULAR SLIDE.

UH, I MENTIONED THE SCOPE OF THE AUSTIN ENERGY REPORT IN TERMS OF THE OBSERVATIONS.

THERE WERE 19 OBSERVATIONS AND THOSE OBSERVATIONS THERE'S 112 FOLLOWUP ACTIONS.

UH, I'D LIKE TO THANK THE AUSTIN ENERGY INTERNAL TEAM BECAUSE IT WAS QUITE THE EFFORT FROM A LOT OF ORGANIZATIONS TO, UM, COLLECTIVELY MEET, DISCUSS AND DOCUMENT THESE 212 UP ACTIONS OF THE 112.

AS YOU CAN SEE, 29% ARE COMPLETED 50% IN PROGRESS AND 21% ONGOING.

UH, AGAIN, THIS IS A VERY COMPLEX ISSUE.

UH, THE WEB FEBRUARY, WINTER STORMS, UH, VERY DYNAMIC ISSUE WITH, UH, I COULDN'T, I CAN'T THINK OF ANYTHING WITH MORE SIGNIFICANCE AND PROMINENCE THAT SOMETHING THAT IS JUST HAS TO BE DONE AND IT HAS TO BE DONE WELL.

AND WE'RE WORKING TOWARDS THAT.

UM, MR. CHAIR, THAT CONCLUDES MY REMARKS.

OKAY, THANK YOU.

[21. 4th Quarter Financial Briefing]

UP.

WE HAVE OUR DEPUTY GENERAL MANAGER AND CHIEF ADMINISTRATIVE FINANCIAL OFFICER MARTIN BASKET TO GET HIS PORTLAND, UH, MARCH AND BRASSICA TONIGHT.

I'LL BE PRESENTING THE UNAUDITED RESULTS QUARTER ENDING SEPTEMBER, 2021.

AND I KNOW WE'RE RUNNING LATE, SO I THOUGHT I'D GIVE THE COMMISSION OPTION.

AND I HAVE A SORT OF AN ABBREVIATED VERSION FROM THE EXECUTIVE SUMMARY THAT I USUALLY GIVE OUR COUNSEL I CAN PRESENT TO YOU.

OR IF YOU'D LIKE, I CAN GO THROUGH THE ENTIRE PRESENTATION FOR YOU.

WITH THE LATEST NUMBERS, I THOUGHT A MADE 54 MILLION FROM OVER A URI, BUT I THOUGHT THAT MAY A, A DIFFERENT NUMBER.

SO IF YOU HAVE THAT NUMBER, THE FINAL NUMBER, THAT WOULD BE GOOD TOO.

SO I I'LL DO IS, I'LL GIVE YOU THE EXECUTIVE BRIEF AND I'LL JUMP TO THAT PSA SINCE THAT'S A BIG ISSUE FOR US PSA NUMBERS FOR YOU.

EXPERIENCED THAT NET LOSS OF 53 MILLION FOR THE 12 MONTHS ENDING SEPTEMBER 21.

SO NEXT SLIDE PLEASE.

SO THE DATA I'M GOING TO PRESENT TO YOU IS FORECASTED FINANCIAL INFORMATION.

WE USE REASONABLE, UH, INPUTS, ASSUMPTIONS, AND DATA.

HOWEVER, THE ACTUAL RESULTS WILL VARY AND OUR REPORT CONTAINS UNAUDITED INFORMATION THAT IS SUBJECT TO CHANGE.

UM, OUR LAST AUDIT REPORT FOR FYI 20 WAS PUBLISHED ON MARCH 18TH, 2021.

AND WE EXPECT THE FYI 21 NUMBERS, WHICH ARE CURRENTLY UNDER WAY WITH OUR AUDITORS.

IT SHOULD BE PUBLISHED IN MARCH OF 2022 NEXT PAGE.

SO THIS IS OUR AGENDA AND THE REPORTS REALLY DESIGNED TO BE A SLOW READ STANDALONE.

SO YOU CAN GO THROUGH IT LATER.

IF YOU HAVE QUESTIONS, I'D BE GLAD TO ANSWER THEM FOR YOU.

UM, NEXT PLEASE, PLEASE.

NEXT PAGE EXECUTIVE SUMMARY.

SO AT THE END OF FOURTH QUARTER WERE GENERALLY COMPLIANT WITH ALL OF OUR FINANCIAL POLICIES ARE CONTINGENCY AND CAPITAL RESERVE BALANCES ARE STILL BELOW OUR MINIMUMS, BUT THE TOTAL CASH EXCEEDS OR MINIMUM $457 MILLION.

OUR OPERATING REVENUES ARE 9% UNDER BUDGET, PRIMARILY DUE TO LOWER THAN EXPECTED POWER SUPPLY REVENUE AND BASE REVENUE.

UNDER REGULATORY ACCOUNTING, POWER SUPPLY REVENUES WILL ALWAYS MATCH THE ACTUAL POWER SUPPLY EXPENSES AND DUE TO THE AUSTIN ENERGY'S NET GAIN AND THE PSA DURING FEBRUARY, 2021, BOTH OUR OPERATING REVENUES AND OUR EXPENSES ARE UNDER BUDGET ON A BUDGETARY BASIS.

OUR OPERATING REVENUES WERE 1.28 BILLION FOR FYI 21 OR 9% UNDER BUDGET.

WHILE OUR OPERATING EXPENSES WERE 937 MILLION OR 10% UNDER BUDGET.

THIS RESULTS IN A BUDGETARY OPERATING INCOME BY $350 MILLION.

AS I STATED, MOST OF THAT WAS DUE TO OUR WINTER STORM IN FEBRUARY, BUT WE ALSO EXPERIENCED A DECREASE IN BASE REVENUES AS A RESULT OF LOWER THAN EXPECTED, UH, CONSUMPTION FROM OUR OPERATING INCOME OF 350 MILLION.

WE MADE CITY, UH, SUPPORT TRANSFERS AND INTERNAL TRANSFERS SUCH AS DEBT SERVICE AND THE CASH PORTION TO FUND OUR CIP, WHICH NETS A BUDGETARY DEFICIT OF 129 MILLION VERSUS A FORECAST EFFICIENCY OF 11 MILLION ON A GAP BASIS.

[02:30:01]

AT THE END OF SEPTEMBER, OUR CASH BALANCE IS 330 MILLION, WHICH IS A DECREASE OF 72 MILLION FROM A YEAR AGO.

AND THAT'S PRIMARILY DUE TO THE INCREASE IN OUR CASH TRANSFER TO THE CIP.

SINCE WE DID NOT CONVEY THE TLC BUILDING IN 21, AS WE HAD PLANNED, WE ARE CURRENTLY MEETING OR AA CREDIT RATING METRIC, WHICH WAS AFFIRMED BY S AND P CREDIT IN JULY OF 21.

AND IN OUR MARKET INDUSTRY ANALYSIS, WE PRESENTED OUR ANNUAL COMPETITIVENESS METRIC FOR CALENDAR 2020 INDICATED THAT AUSTIN ENERGY IS AVERAGE SYSTEM RATE IS 2.5%.

THE STATE AVERAGE WITH THAT, IF YOU GO TO PAGE, LET'S SEE ONE PAGER SO FOR THE 12 MONTHS ENDING SEPTEMBER 21, OUR NET POWER SUPPLY COSTS WERE 281 MILLION VERSUS A LOAD COST OF 2.1 BILLION FEBRUARY WINTER STORM HAD A MATERIAL IMPACT ON OUR LOAD ZONE COSTS, AS WELL AS OUR REVENUES FROM OWNED CONTRACTED ASSETS, THE PSA RESULTS.

AT THE END OF THE YEAR, IT GIVES US A SIGNIFICANT POSITIVE BALANCE OF $105 MILLION.

BUT AS I MENTIONED, NOT ALL OF THAT WAS, UH, OVER, UH, WAS RECOVERED.

AND, UM, WE STILL HAVE SOME MORE MONEY THAT THAT'S DUE TO SHORT PACE, UH, FROM ERCOT, UM, THAT IS STILL PENDING, UM, EFFECTIVE NOVEMBER 1ST, THE PSA WAS REDUCED BY 6.5% AND THAT REDUCTION IS ATTRIBUTED TO THOSE REVENUES FROM OUR OWNED AND CONTRACTED ASSETS, AS WELL AS THE BILATERAL TRADES AND OUR HEDGING ACTIVITY.

UM, AS FAR AS THE ERCOT SHORT PAY.

SO WE WERE, UH, SHORT PAID $49 MILLION, MEANING THAT'S HOW MUCH ERCOT OWED US.

AND WE, UM, WE EXPECT TO PAY $17 MILLION IN UPLIFT.

SO THAT'S OUR SHARE OF, UM, UM, THE LACK OF FUNDS BEING RECEIVED FROM, FROM, UH, FROM UTILITIES, UM, AS, AS A PRODUCER OF ENERGY.

SO THAT NETS 32 MILLION.

SO WE HAVE A $32 MILLION RECEIVABLE ON THE BOOKS FROM ERCOT.

ONCE THAT SECURITIZATION GOES THROUGH THAT, WE HOPE TO RECEIVE THAT THOSE MONIES.

AND WHEN WE SET THE PSA, UM, WE DID NOT INCLUDE THAT 32 MILLION IN THE DOLLARS GOING BACK SO THAT, UH, ONCE WE RECEIVED THOSE DOLLARS, I'D GO INTO THE CALCULATION IN WHICHEVER YEAR, UH, THAT WE RECEIVED THOSE FUNDS.

SO IT'S 32 PLUS 54 OR 32 AS THE NEW NOTE.

SO, SO 54 WAS OUR, IT WAS OUR INITIAL NUMBER, UM, THAT WE, WITHIN DAYS AFTER THE STORM, UM, IT TOOK SEVERAL MONTHS FOR ALL THE ERCOT SETTLEMENTS TO COME THROUGH.

AND THEN THERE WAS ALSO, UM, A BROADER PERIOD THAT JUST THE FEBRUARY STORM, UM, PRICES REMAINED HIGH FOR SOME TIME AFTERWARDS.

AND SO THE TOTAL FEBRUARY GAIN WAS, WAS MUCH MORE THAN $54 MILLION.

IN FACT, UH, WE, UH, WE EXPECTED ABOUT $105 MILLION IN TOTAL GAIN FOR THE MONTH OF FEBRUARY.

SO BOTTOM LINE IS WE REDUCED OUR PSA CUSTOMERS BENEFITED ON NOVEMBER 1ST WITH A LOWER DSL.

THAT'S CORRECT.

SO WE CALL IT AN OVERCOLLECTION, BUT THESE FUNDS WEREN'T, UH, WEREN'T THE WORD GENERATE TO THE POWER SUPPLY ADJUSTMENT, RIGHT? THE CUSTOMERS PAY THIS IS GENERATED FROM THE ERCOT MARKET BY PRODUCING POWER, UH, WHEN PRICES WERE AT 9,000, AS WELL AS, UH, PROVIDING ANCILLARY SERVICES, UM, WHERE THE PRICES WERE QUITE HIGH AS WELL TO JANE JOY TESTIFYING AT THE LEGISLATURE.

I'M JUST KIDDING.

UH, YOU KNOW, THEY ONLY GIVE YOU THREE MINUTES TO SAY A LOT, SO NO, ANY QUESTIONS I SAID, NO ONE HAS ANY QUESTIONS.

I'LL BE GLAD TO ANSWER EMAIL OR THANK YOU, MARK.

AM 22 IS AN ITEM FROM COMMISSIONERS.

NEXT ITEM.

JENNIFER, WERE YOU ON 22?

[02:35:02]

YES, SIR.

[22. Discussion and possible action regarding forming a Fayette Power Plant Resource Plan Working Group. (Sponsors: Tuttle; Reed)]

SO CYRUSONE, SO YOU DRAFTED THAT.

DO YOU WANT TO, CAN YOU BRING IT UP AND SURE.

UM, SO LIKE A LOT OF, A LOT OF YOU ON NOVEMBER 1ST, ONE IN ANNOUNCED THAT, UM, THEY WERE UNABLE TO REACH AN AGREEMENT WITH LCRA ON THE COAL PLANT.

UM, I WAS PRETTY CONCERNED BECAUSE THE GENERATION PLAN THAT CITY COUNCIL ADOPTED WITH A LOT OF INPUT FROM US, UH, A LOT, A LOT OF THE, THE, THE GOOD WAS, UH, SUBJECT TO THIS, THIS POTENTIAL RETIREMENT OF OUR SHOW, THE FAYETTE PLANT.

SO THE IDEA OF THIS, UH, RESOLUTION WAS NOT, UH, TO REOPEN THE WHOLE RESOURCE PLAN, WHICH I THINK IT NEEDS A MUCH LONGER DISCUSSION.

AND AS I, AS I RELAYED THAT WILL HAPPEN EITHER IN 20, 23 OR LATER, DEPENDING ON WHAT WE DO, BUT SIMPLY TO GET A SUBGROUP OF THE EDC, TO HAVE SOME MEETINGS WITH AUSTRIAN ENERGY IN THE NEXT FEW MONTHS, AND LOOK AT WHAT ARE THE OPTIONS.

AND THE THREE OPTIONS THAT ARE MENTIONED, THIS RESOLUTION IS ONE CONTINUE TO KNIT.

AND THESE AREN'T MUTUALLY EXCLUSIVE, RIGHT.

ONE IS CONTINUE TO NEGOTIATE WITH LCRA FOUR TO REACH THE DATE OF 20, 22, OR AS SOON AS POSSIBLE.

MAYBE IT TAKES A LITTLE BIT LONGER, RIGHT? UH, THE SECOND IS TO USE, REACH AND POTENTIAL IN A MORE AGGRESSIVE WAY TO REDUCE CALL EMISSIONS.

UM, AND A THIRD OPTION, UM, IS TO ALSO LOOK AT, UM, RFPS OR OTHER MEANS TO PRODUCE CARBON FREE ELECTRICITY IN THAT SAME NOTE, IN THAT SAME AREA, WHICH, UH, WOULD BE VERY BENEFICIAL AND COULD ALSO MAYBE PUT SOME PRESSURE TO REDUCE EMISSIONS FROM FAT, FROM THE COAL PORTION OF FAT.

SO THOSE AREN'T NECESSARILY ALL THE IDEAS.

UM, AND SO THE TWO, LET ME DISCUSS TWO CHANGES.

I WOULD LIKE TO SEE, AND MAYBE A THIRD CHANGE AND SUBJECT TO, TO WHAT PEOPLE THINK.

UM, ONE IS IN TALKING TO AUSTIN ENERGY STAFF.

THIS HAD US, UH, COMING BACK, YOU KNOW, BY NO LATER THAN THE END OF JANUARY, WITH SOME RECOMMENDATIONS TO THE FULL EOC, THAT'S A PRETTY SHORT TIME PERIOD TO DISCUSS THIS STUFF.

UM, SO ONE CHANGE I WOULD, I WOULD SAY IS LET'S PUSH THAT A FEW MORE MONTHS DOWN THE LINE, WHICH WILL GIVE MORE TIME TO, YOU KNOW, MEET WITH EUC, ET CETERA.

UH, ANOTHER CHANGE, UM, IN THE THREE BULLET POINTS, MAYBE WE SIT AND WE SAY NOT LIMIT, INCLUDING, BUT NOT LIMITED TO, BECAUSE THERE MAY BE OTHER OPTIONS THAT WE HAVEN'T THOUGHT ABOUT.

UH, MAYBE THERE'S MAYBE THERE'S BUILD BACK BETTER MONEY THAT COULD BE USED FOR SOMETHING, YOU KNOW, WE DON'T KNOW.

UM, SO THAT'D BE ANOTHER CHANGE.

AND THEN THE THIRD THING I WANT TO DISCUSS, I DON'T KNOW IF PEOPLE ALSO WANT TO LOOK AT THE NACADOCIOUS PAP AT THE SAME TIME, OR KEEP THIS FOCUS JUST ON FAYETTE.

UM, I HAVE THIS ALTERNATIVE VERSION THAT INCLUDES BOTH, UH, OR WE COULD, WE COULD STICK TO JUST FAYETTE AND I'M SORT OF GETTING A TEMPERATURE CHECK, WHETHER WHAT PEOPLE THINK COMMENTS ON BOTH NACADOCIOUS AND FAYETTE VERSUS VERSUS JUST FOCUSING ON, ON THE UNFAIR ITSELF, BUT I'LL GIVE IT AN ADDITIONAL TIME.

I WOULD SUGGEST BOTH.

UH, AND I JUST WANT TO CLARIFY THAT AS, AS GRAFTED, THERE'S NO PROBLEM WITHOUT OPEN MEETINGS TYPE, UH, THESE CONSULTATIONS OF THE WORK GROUP, THAT THERE WOULDN'T BE ANY ISSUES THERE AS LONG AS IT'S NOT A CALL ON YOU.

UH, QUANTUM OR EITHER, EITHER GROUP.

CLOSING THE COAL PLANT IS A BIG DEAL FOR A LOT OF REASONS.

YOU NEED TO, YOU NEED TO KEEP IT BELOW A QUORUM.

THE IDEA WOULD BE TO MEET WITH AUSTIN ENERGY, GET INPUT AND COME BACK AND, AND IT MIGHT NOT LEAD TO ANYTHING, RIGHT.

IT MIGHT SAY, YOU KNOW, WE'RE GOING TO WAIT AND, YOU KNOW, WE NEED TO WAIT LONGER.

WE, WE DON'T HAVE ANY ANSWERS, BUT, UM, I, I JUST, THIS IS A BIG DEAL, RIGHT?

[02:40:01]

AND TO JUST DO NOTHING, DOESN'T SEEM LIKE A GOOD OPTION.

SO THAT AT LEAST THIS WOULD GIVE US SOME WORKING MEETINGS.

UM, AND HOPEFULLY OUR RMC ALSO WANTS TO DO SOMETHING ON THIS.

AND THEN WE COULD KIND OF WORK COLLABORATIVELY WITH THE TWO COMMISSIONS.

I, YOU KNOW, MY, MY REACTION WHEN I SAW THAT SAYS IS ALL OF WHICH IS WE DO NOT HAVE THE DATA THAT CITY COUNCIL DOES.

AND WE ARE AN ADVISORY GROUP TO THE CITY COUNCIL.

THEY KNOW WHAT THE NUMBERS ARE THAT AT A CRA THROUGHOUT OUR CITY COULD NOT.

IT'S THE CITY COUNCIL MEMBERS AND THE MAYOR FOUND UNACCEPTABLE.

UH, ALL OF WHICH IS AS PART OF ANY DISCUSSION ON AS PART, YOU KNOW, WE ARE HINDERED BY THAT AS A GROUP TO BE ABLE TO MAKE RECOMMENDATIONS WITHOUT DATA.

ON THE OTHER HAND, I WOULD LIKE AS PART OF THIS, IF THIS AMENDMENT, BECAUSE I LIKED CONCEPT, UH, WOULD CERTAINLY BE AN ANALYSIS OF BILL IMPACT ASSOCIATED CUSTOMER BILL IMPACT ASSOCIATED WITH ANY SPECIFIC ACTION.

WELL, HAVING BEEN PRETTY, UH, INVOLVED IN PUTTING THE PLAN TOGETHER, I GOT TO SAY THAT TAKING THIS ONE SEGMENT OUT PRETTY MUCH ORIGINATES, YOU KNOW, 50% PLUS OF THE BENEFITS THAT WE WERE TRYING TO GET ON THE CARBON SAVINGS.

SO, UH, YOU KNOW, IT SEEMS WORSE, UH, ADDRESSING IT.

I HAVE TO ADMIT, I'M NOT ENTIRELY SURE I FOLLOW WHY YOU WANT TO, UH, ADD THE, UH, THE BIOMASS PLANT, UH, INTO THE EQUATION.

IT, UM, I'M OPEN EITHER WAY.

IT'S, IT'S A CHANGE, YOU KNOW, THE PLAN THAT WAS ADOPTED BY CITY COUNCIL CONTEMPLATED THE BIOMASS PLANT ONLY OPERATING IN THE SUMMER AND RETIRING IN A SHORT TIMEFRAME.

THAT ALSO SEEMS LIKE A MAJOR CHANGE TO THE PLAN, THIS ANNOUNCEMENT.

UM, BUT I'M ALSO SENSITIVE TO NOT WANTING TO TAKE ON.

YEAH, I THINK YOU'RE TAKING MORE THAN YOU NEED TO.

IT'S A, IT'S A SIGNIFICANTLY DIFFERENT ISSUE AND I COULD ARGUE IT'S ACTUALLY A POSITIVE DEVELOPMENT.

SO, UM, YOU KNOW, UH, I'M NOT SURE THEY BELONG IN THE SAME BUCKET AND PRODIGY AND A BOG YOURSELF DOWN.

AND CANADA HAS THE QUESTION ABOUT THE EMISSIONS.

I WOULD RECOMMEND THERE'LL BE SEPARATE APP BECAUSE KAREN AND ASK ABOUT , THERE SHOULD BE SOME EMISSIONS DATA THAT SAYS, IS THIS GIVEN IT'S A BIOMASS PLANT? DOES IT NET ZERO? I MEAN THE WHOLE PREMISE OF IT, BUT HOW MANY YEARS AGO, WHEN IT WAS PUT IN PLACE, THERE SHOULD BE SOME DATA WITH THAT.

AND SO IT MAY BE A QUICKER CONVERSATION AND LESS DEFOCUSING.

THEY HAVE JUST THE FAYETTE CONVERSATION, AND THEN WE COULD HAVE A FOLLOW-UP MEETING OR A FOLLOW-UP PRESENTATION IN A FUTURE MEETING ABOUT THE BIO-MASS ITSELF.

ULTIMATELY, YOU KNOW, HE CAN MAKE THE MOTION THAT HE WANTS TO MAKE.

I THINK THERE'S ALREADY DATA THERE ABOUT ITS EMISSION PROFILE, BECAUSE IF IT'S IN THE MONEY AND IT'S NEAR ZERO ALREADY, ISN'T THAT, I DON'T KNOW.

YOU REFERRING TO OTHER EMISSIONS SUCH AS NITROGEN OXIDE EMISSIONS VERSUS CARBON EMISSIONS ALL WENT THROUGH WHEN IT WAS CREATED THIS WHOLE PLANT AND HOW MANY YEARS AGO YEAH.

CURE.

UM, WELL, THERE WAS A LOT OF CONTROVERSY ABOUT THE VIOLINIST ALL ALONG EXPENSE WAS A HUGE, UM, I THINK THAT I WOULD PREFER THAT IT BE INCLUDED IN THESE DISCUSSIONS.

UM, AND AS YOU KNOW, WE MAY OR MAY NOT CHOOSE TO TAKE ACTION.

WE CAN TAKE ACTION RECOMMENDATIONS.

SO I THINK IF, OKAY, SO I HAVE, I HAVE THIS COPY OF A EXPANDED RESOLUTION THAT INCLUDES NACADOCIOUS AND FIAT.

UM, AND IT HAS A MARCH DEADLINE AS OPPOSED TO A JANUARY DEADLINE, WHICH I CAN PASS OUT IF THERE'S SUPPORT FOR IT.

AND THIS IS STILL, I DON'T KNOW THAT THE DEADLINE NECESSARILY YOU HAVE TO CHANGE.

I THINK IT COULD EASILY, ESPECIALLY, I DON'T THINK IT'S TOO MUCH HEAR, HEAR THEIR ELDER STATESMAN.

UM, IT'S NOT TOO MUCH IT'S CYRUS'S MOTION.

[02:45:01]

I, I JUST, YOU KNOW, I'VE BEEN THROUGH RESOURCE PLANNING QUITE A FEW TIMES NOW.

AND, UH, I JUST GOT TO SAY, THE MORE YOU ADD TO THE AGENDA, THE HARDER IT IS TO GET IT DONE.

AND THIS IS SOMETHING WHERE I, I THINK A LOT OF PEOPLE ARE GOING TO HAVE SOME KIND OF A PROMPT REVIEW OF, OF OPTIONS ON THE TABLE FOR, UM, ADDRESSING YEAH.

FINDING ALTERNATIVES TO, TO OUR ORIGINAL PLAN.

AND I JUST THINK, I CAN'T THINK, UM, BOTTOMLEY HAS POINTED TO IT IS IT ADDS A COMPLETELY DIFFERENT DIMENSION AND I'M NOT SURE YOU'RE GOING TO MOVE FAST, BUT YOU KNOW, I'VE ALREADY SAID THAT ONCE.

SO, YOU KNOW, I'VE SAID IT TWICE.

I AGREE WITH THAT ANALYSIS, I'D BE IN FAVOR OF KEEPING THEM SEPARATE.

I DIDN'T BRING ENOUGH, BUT I THINK PROCEDURALLY IT'S ULTIMATELY CYRUS'S TO MAKE A MOTION ON WHERE ARE THE OTHER, OH, I FOUND SOME MORE COPIES.

UM, AND I'D, UH, OF COURSE ERIC DOESN'T IS THERE EXTERNAL IN THE LINE OF YOU LEFT? OKAY.

UM, AND KAREN, I SENT IT TO YOU SEPARATELY.

DID YOU GET A COPY OF THIS? I SAID, OKAY.

UM, I CAN EAT KIT.

IF PEOPLE HAVE A COPY OF THIS, I COULD, I COULD READ IT IF THAT'S HELPFUL.

OR WE HEARD THE NEWS, THAT ONE, THE, THE VERSION I JUST PASSED YOU THAT'S WITH THE WOULD HAVE BEEN NACADOCIOUS.

SO IT WOULD BE FORMING A, UM, WHAT DID I CALL IT? A AUSTIN ENERGY POWER PLANT NACADOCIOUS BIOMASS GENERATOR, EEC WORKING GROUP.

THAT'S A MOUTHFUL.

THAT WOULD LOOK AT THE COST AND BENEFITS OF THE NACADOCIOUS PLANT AND ALSO CONSIDER ALL OPTIONS FOR FAYETTE, INCLUDING, BUT NOT LIMITED TO THE THREE THINGS I SAID.

AND WE WOULD MAKE FULL RECOMMENDATIONS TO THE FULL UC FOR POSSIBLE ACTION NO LATER THAN MARCH 7TH, 2022, BECAUSE I THINK THAT'S OUR NEXT, THAT'S THE MARCH.

SO GIVE US ANOTHER LITTLE MORE TIME.

AND AGAIN, IT COULD BE, WE, YOU KNOW, WE LOOK AT ALL THIS AND WE'RE NOT SURE WHAT TO DO, OR IT COULD BE, BE, COME UP WITH SOME REALLY GOOD IDEAS.

THAT'LL KEEP US ON THAT.

20, 22 PATH.

I HAVE A QUESTION.

IS THERE ANYTHING ABOUT THE BIOMASS PLANT THAT IS A CARBON ISSUE? WELL, TECHNICALLY THE POINT WAS SOLD AS A ZERO CARBON PLANET.

UH, YOU KNOW, UH, I KNOW THERE'S A LOT OF PEOPLE WHO, YOU KNOW, DON'T BUY IT OUT FOR WHATEVER REASON.

UM, I BELIEVE IT'S FAIR TO SAY THAT KAREN'S KAREN'S CONCERN IS NON-CARBON IT'S ABOUT OTHER POLLUTANTS THAT ARE IN THE WOOD-BURNING, UH, PROCESS, BUT, YOU KNOW, IF YOU BUY WHAT THE EPA HE SAID ABOUT IT, IT'S A CARBON, NOT A NON-CARBON GENERATING PLANT AND NOT TO BELABOR IT, BUT THE WHOLE PURPOSE OF THE, OF THE, UM, THE EX CLIMATE EQUITY PLAN ADDRESSED, IT WAS ZERO GREENHOUSE GAS EMISSIONS, YOUR FIRST POINT.

AND SO IS THAT IMPLICATED? I'M JUST, I REALLY DO NOT UNDERSTAND WHY, WHY THAT, WHY THE BIOMASS PLANT WOULD BE PART OF THIS DISCUSSION.

AND THAT'S WHAT I'M SEEKING CLARIFICATION ON.

I'M HERE TO BE EDUCATED.

I THINK, AGAIN, IT GOES BACK TO SOME OF US DON'T BELIEVE THE WAY THE WORD IS ACTUALLY MIND MAKES IT A ZERO CARBON PLANT, BUT THAT'S A MORE AREA DIET DISCUSSION.

IT IS.

AND IT'S, YOU KNOW, COMPLETELY COUNTER TO THE WHOLE RATIONALE FOR BUYING THE PLANT IN THE FIRST PLACE.

SO, UM, OR COMMITTING TO THE PLANT IN THE FIRST PLACE.

I JUST, I JUST THINK IT TAKES YOU DOWN A DIFFERENT PATH AND IT'S GOING TO SLOW YOU DOWN AND, AND TAKE A LOT OF EXTRA TIME.

SO IT'S UP TO YOU.

I THINK IT'D BE WISE IF YOU OFFERED TO, AND THEN WE'LL HAVE A VOTE ON EACH

[02:50:01]

ONE, BOTH.

AND THEN WHICH ONE DO YOU WANT TO DO? BOTH.

AND THEN JUST FAYETTE OR WHAT HE WANTS TO KNOW WHEN HE'D PAY A TERROR.

VOTE'S GOING TO COME IN.

IT'LL BE HARD TO JUST SEPARATE IT BECAUSE WE CAN HAVE A SEPARATE CONVERSATION.

THAT'S TRUE.

NACADOCIOUS, I'M HAPPY TO SEPARATE THE CONVERSATION.

LET'S SO, SO LET'S, UM, LET'S, LET'S GO BACK TO THE ORIGINAL RESOLUTION THAT WAS POSTED, UM, AND SIMPLY REPLACED CHANGE THE DATE FRIENDLY MAMET CHANGE THE DATE FROM END OF JANUARY TO MARCH 7TH, WHICH GIVES US A LITTLE MORE TIME.

AND THEN IN THE LINE BEFORE THE THREE BULLET POINTS SAY, INCLUDING, BUT NOT LIMITED TO, IN CASE WE THINK OF REALLY OTHER REALLY GOOD IDEAS ON HOW TO GET OUT OF CALL THAT YOU HAVE A MARKUP FOR THAT.

NO.

GOOD.

WHY DON'T YOU ASK, UH, ASK HIM TO MARK IT UP AND WE CAN VOTE ON IT.

SO I MOVE THAT, WE APPROVE THE RESOLUTION POSTED ON THE AGENDA, DO DULY POST ON THE AGENDA WITH, UH, TWO MODIFICATIONS, WHICH IS IN THE PARAGRAPH THAT STARTS THEREFORE RESOLVED.

UH, WE SAY INCLUDING COMMA, BUT NOT LIMITED TO SEMI-COLON AND THE, THE THREE OPTIONS AND THAT WE CHANGE THE JANUARY 31ST, 20, 22 TO MARCH 7TH, 2022.

I SAT THERE.

I WAS GOING TO MAKE AN AMENDMENT.

OH, I'M SORRY.

NOT THAT YOU SAID YES.

BEFORE WE VOTE CONSISTENT WITH WHAT I SAID BEFORE, UH, I, UH, MOVE THAT IT BE AMENDED TO SAY, BE IT FURTHER RESOLVED THAT THE WORKING GROUP PROVIDE THAT HE UC WITH A BARREL IMPACT ANALYSIS, A BEACH RECOMMEND OF EACH RECOMMENDATION IF AVAILABLE.

YEP.

IF AVAILABLE.

WELL, OF COURSE, RIGHT.

YOU WANT TO WRITE THAT IN A, I DON'T HAVE A PEN, BUT I GOT IT WRITTEN DOWN.

WE WILL MAKE THESE TWO COPIES AVAILABLE FOR JEFF.

SO KAREN, ANY LAST COMMENT? I ACCEPT THE FRIENDLY AMENDMENT FROM MY GOOD FRIEND, RANDY CHAPMAN.

HE'S A LAWYER, BUT I LIKE HIM ANYWAY.

SO IS IT COMFORTABLE? OKAY.

HERE'S A FAVOR THAT KAREN, I SEE YOUR HAND.

SURE.

NOW I WORK WITH SIRENS TO ENSURE THAT I HAVE THE RIGHT LANGUAGE FOR OUR ITEMS. LIKE,

[23. Discussion and possible action regarding the 2022 Electric Utility Commission Meeting Schedule.]

SIGN 23 IS YOUR SCHEDULE.

AND I JUST WANT TO REMIND EVERYBODY THAT THE SCHEDULE FOLLOWS THE USUAL FORMAT OF EVERY SECOND, MONDAY SIX, O'CLOCK HERE AT THE HEADQUARTERS.

OBVIOUSLY WE'RE TRYING TO HAVE HYBRID MEETINGS AND WE'LL CONTINUE THOSE EFFORTS.

UH, THERE MAY BE A CHANGING REQUIREMENT THAT MAY COME INTO EFFECT AT THE END OF FEBRUARY, COURTESY OF AN ORDINANCE THAT COUNCIL HAS PASSED.

WE WILL STAY ABREAST OF THAT.

UH, AND IT WOULD SAY THAT YOU DON'T HAVE TO HAVE THE FULL CORE HERE AT PRESENT.

SO THAT'S JUST AN ADVANCED NOTICE THAT THAT MAIN CHANGE, UH, ALTHOUGH, UH, THERE ARE CHALLENGES, UH, YEAH, BUT WE'LL KEEP YOU A PROMPT.

THERE ARE A FEW ADJUSTMENTS TO THE SCHEDULE, UH, DURING THE HOLIDAYS.

UM, THE FIRST IS IN MARCH, YOU'RE MOVING MOST OF ALL ON SPRING BREAK, THE WEEK OF SPRING BREAK FOR YOUR T AISD AND OTHERS SURELY.

AND THEREFORE WE MOVED IT ONE WHEN WE, I THINK LATER, LET ME PULL THAT UP.

AND THEREFORE NOTHING TO WORRY ABOUT THEM.

EARLIER, UH, ONE WEEK LATER, THANK YOU.

AND THE SAME, YOU KNOW, OCTOBER ON COLUMBUS DAY OR INDIGENOUS PEOPLE'S DAY.

AND, UM, I MEAN, PRACTICE, KEEPING IN PRACTICE AS HAS BEEN THE LAST FEW, SEVERAL YEARS, UH, WE CANCELED YOUR DECEMBER MEETING.

I'LL STAY IN SABRINA IT'S BECAUSE THERE ARE NO COUNCIL MEETINGS AFTER, YOU KNOW, AFTER A YEAR MEETING DATE

[02:55:01]

AND AT THAT, AND THEN WE JUST PICK IT BACK UP IN JANUARY.

ANY COMMENTS ABOUT THIS? AND BY ALL MEANS, BY THE WAY, DON'T LET ME, UH, PREVENT YOU FROM CHOOSING THE MOOD TO BUY MONTHLY OR TO CANCEL THE MARCH MEETING.

IF YOU'D RATHER JUST SAY ANYTIME WE CAN GET A QUOTE OF A MEETING.

SO YOU'RE LOOKING FOR A MOTION AND A SECOND VOTING ON THIS.

DO WE EVER MOVE? OKAY.

MY SECOND BOOTS I CAN.

SO WE HAVE CONFIRMATION UNANIMOUS.

HEY, DAVE, I RE I REALIZED AFTER PASSING THAT RESOLUTION, WE DID THEN CALL FOR, UH, VOLUNTEERS TO BE ON THE EOC COMMITTEE.

GOOD POINT.

UM, I THINK UNTIL MARTY COMES BACK, I DON'T NEED TO BE ON THAT.

YOU'RE GOING TO BE ON THAT.

WHO ELSE WOULD VOLUNTEER? AND IT CAN'T BE, IT HAS TO BE FIVE OR US.

OH, DID WE GET THE NAVY? NO, GET OKAY.

BUT COULD WE HAVE FIVE? WE CAN HAVE FIVE OR BELOW FROM WHAT I UNDERSTOOD.

AND WE NEED TO PUT, LEAVE A PLACE FOR MARTY .

OH, KAY.

KAY.

I WASN'T RAISING MY HAND.

IT'D BE NICE TO, IT'D BE NICE TO HAVE, IT'D BE NICE TO HAVE KAREN ON.

SO DOES THAT LEAVE ROOM FOR MARTY? IF SHE COMES BACK AFTER MATERNITY LEAVE 1, 2, 3, 4, 5.

I'M JUST CONFIRMING, YOU ARE SUGGESTING THAT VICE CHAIR, TITLE, COMMISSIONERS, REED, CHATMAN, AND HATTON ARE THE MEMBERS OF THE WORKING GROUP.

FUTURE AGENDA ITEMS. UH, THIS IS THE END OF THE YEAR.

AND CAN YOU PUT MARTY'S NAME ON THERE TOO AND TOLD HER, BUT SHE'S CALLING TO HER ABOUT THIS, BUT SHE DIDN'T, I'M SURE SHE CAN ALWAYS BE KALINE ON THAT.

SO THAT ARE REALLY THROUGH WITH 23.

WHAT ABOUT, UH, 24 AND 25? THERE WERE NO BARRIERS, NO REPORT FOR ITEM 24.

THE LAST TIME Y'ALL RECEIVED A REPORT UPDATE WAS BACK IN SEPTEMBER, UH, UNDER 25

[25. Future agenda items.]

WE, I DON'T HAVE A LIST, BUT, UH, I BELIEVE HAS GIVEN US, I'M SORRY.

VICE CHAIR TITLE HAS GIVEN US A LENGTHY LIST THAT WE ARE CURRENTLY REVEALING THAT DOES EDITING FROM THE AFTER ACTION REPORT, BREAKING DOWN THE SEXUALIZATION OF CIRCUITS.

UM, THERE'S A REQUEST FOR AN UPDATE ABOUT THE SOLAR SLASH STORAGE RFP AT SOME POINT FROM COMMISSIONER REED.

UH, AND IN FACT, I COULD PROBABLY JUST SEND YOU A WRITTEN KIND OF UPDATE OR STATUS POINT ALL THE COMMISSIONERS, OF COURSE, TO ALL THE COMMISSIONERS.

AND, UM, SO WE CAN HANDLE IT IN THAT MANNER, IF THAT'S ALL RIGHT WITH Y'ALL, WE WILL DO THE TWO ITEMS THAT WERE ON YOUR, YOU KNOW, TWO OR THREE MONTHS WORTH OF AGENDAS.

THEY EIGHT AND A HEADQUARTERS UPDATE.

WE'RE HAPPY TO GIVE YOU ONE STILL, MAYBE WE CAN COMBINE IT WITH A TOUR DEPENDING ON HOW LENGTHY OR, YOU KNOW, AN AGENDA YOU END UP WITH AND THEN WE'LL HAVE AN UPDATE FROM MR. STOCKVILLE ON MY BUILDING ITEMS. THAT SOUNDS GOOD.

AND THE REQUEST FOR DEATH AND THE, UM, POLLUTION, UM, SHE SAID THE VIOME HAS PLANTED THE EMISSIONS A LITTLE.

AND TO BE CLEAR, KAREN, YOU'RE TALKING ABOUT ALL, UH, AIR EMISSIONS, ALL AIR EMISSIONS.

THAT COULD BE GREAT.

THAT WAS THAT, UH, WE SHOULD BE INVOLVED A LITTLE BIT EARLIER WITH STAFF IN DEVELOPING THE BUDGET BEFORE IT GOES TO COUNCIL.

SO HAVE I WAS GONNA ADD, WE KIND OF STUMBLED A LITTLE BIT WHEN WE WERE REVIEWING THE, UH, ACTION BY CITY COUNCIL REGARDING THE DISCOUNT PROGRAM, IF YOU RECALL.

I, AND, AND FROM THAT, FROM THAT, IT SEEMED TO ME THAT THE AUC SHOULD BE INVOLVED EARLY AROUND IN THE CHIP PROCESS CAPE ON

[03:00:01]

SO NOT FOR THE JANUARY MEETING, WE GOT PLENTY THERE, BUT, BUT IS I UNDERSTAND THE RIGHT REVIEW.

THAT ITEM IS THE RIGHT REVIEW.

SO IF, UH, IF THE COUNCIL IS GOING TO BE TAKEN, UNDERTAKING A RATE REVIEW IN FEBRUARY, UH, IT'S GIVE ME A RIGHT REVIEW.

CAN WE PUT THAT ON THE AGENDA FOR THE FEBRUARY MEETING, MARK, MARK? WHAT, WHAT THAT TIMING WOULD BE PAST JEFF CONDITIONER? IT'S, IT'S MORE HELPFUL FOR US IF THERE'S A, IF THERE'S A TOPIC THAT COUNCIL IS GOING TO BE CONSIDERING AND YOU'RE WANTING TO PROVIDE A RECOMMENDATION, UH, BUT THAT TIMING WILL UNFOLD ON ITSELF.

UM, IT SOUNDS LIKE YOU WANT AN UPDATE OR YOU WANT TO DISCUSS, DISCUSS A POTENTIAL RATE WITH ME.

IS THAT WHAT I UNDERSTAND? I UNDERSTAND MY QUESTION.

I GUESS THERE'S MY UNDERSTANDING, OR THERE'S BEEN DISCUSSION OF A RIGHT REVIEW IN 20 AND 2022 HERE.

IF THAT'S GOING TO TAKE PLACE, THEN I'M JUST RECOMMENDING THAT THE NDC BE INVOLVED EARLY ON IN THE PROCESS.

IS, IS IT, IS THAT CORRECT? IS, IS RIGHT REVIEW, UH, GOING TO BE CONSIDERED THIS COMING YEAR, LOOKING TO SEE IF OUR CFO WAS STILL HERE.

JACKIE ASKED THE ANSWER'S.

AND THAT'S THE, THAT'S THE ITEM ITEM AND THAT, I DON'T KNOW IF WE NEED SOME GROUP OR, OR, OR TO KIND OF DEL DELVE INTO IT BECAUSE WE DIDN'T KNOW WHAT THE INITIAL RECOMMENDATIONS ARE, BUT LET'S, LET'S KEEP THAT AS AN AGENDA ITEM.

WE'VE FLAGGED THAT IN SOME WAY.

SO WE DON'T REMEMBER THIS FLAG.

YES, SIR.

SO THREE HOURS HAS GONE BY PRETTY FAST .