* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:31] WE'VE GOT EVERYONE, OUR GRILL. UM, GOOD MORNING. WELCOME EVERYONE. THIS IS THE FIRST, UH, AUTHOR ENERGY, 2022 BASE RATE REVIEW TECHNICAL CONFERENCE. I'M THOMAS . I'M AN ATTORNEY THAT REPRESENTS THE CITY. UH, WHY DON'T WE GO AHEAD AND GET STARTED TODAY BY INTRODUCING THE, UH, OTHER INDIVIDUALS THAT ARE HERE ON BEHALF OF AUSTIN ENERGY. UH, AND THEN WE CAN TALK ABOUT LOGISTICS A LITTLE BIT, AND THEN WE CAN JUMP IN AND BEGIN TO ANSWER YOUR QUESTIONS. SO I'LL JUST START WITH MY LEFT. HELLO EVERYONE. I'M TIM HARVEY. I MANAGE THE CUSTOMER RENEWABLE SOLUTIONS TEAM. GOOD MORNING. MY NAME IS RUSTY MANGUS. I AM THE, UH, VICE PRESIDENT OF FINANCE HERE AT AUSTIN ENERGY. MY NAME IS GRANT RAVEN WITH NEW GEN STRATEGIES AND SOLUTIONS. THE CONSULTANT HIRED ON BEHALF OF AUSTIN ENERGY TO HELP WITH THIS RATE REVIEW, BRIAN MURPHY, WITH THE RATES TEAM, UH, ANYONE ELSE WITH AUSTIN ENERGY THAT WANTS TO INTRODUCE THEMSELVES. ALL RIGHT. UH, IF NOT THEN, UH, I WOULD NOTE THAT THIS IS THE FIRST OF TWO TECHNICAL CONFERENCES THAT WE'VE PLACED ON THE PROCEDURAL SCHEDULE. THE NEXT ONE WILL BE MAY 18TH FROM NINE TO NOON IN THIS SAME ROOM. SO, UM, FEEL FREE TO PARTICIPATE IN THAT ONE AS WELL. IF YOU HAVE ADDITIONAL QUESTIONS, UM, ALSO JUST TO LET YOU ALL KNOW, UM, WE WILL BE HANDING OUT SOME DOCUMENTS TODAY. UM, WE HAD RECEIVED SOME QUESTIONS FROM THE ICA, UH, IN ANTICIPATION OF THIS, UM, CONFERENCE, AND WE HAVE SOME MATERIALS, ANYTHING THAT WE HAND OUT, WE WILL POST THOSE TO THE CLERK'S WEBSITE. SO OTHER PARTIES WILL BE ABLE TO GET, UM, ACCESS TO THOSE DOCUMENTS AS WELL. WE ALSO KNOW THAT THERE ARE A FEW QUESTIONS THAT WE'VE RECEIVED, THAT WE WERE NOT ABLE TO, UM, PREPARE FULL RESPONSES TO, UH, IN THE SHORT TIME THAT WE'VE HAD. UM, BUT WE WILL FOLLOW UP. AND AGAIN, ANYTHING THAT WE PROVIDE, WE WILL POST THOSE ON THE WEBSITE. SO IF YOU WANT TO GET ACCESS TO THOSE DOCUMENTS, FEEL FREE TO, UM, GO TO THE CLERK'S WEBSITE, IF YOU NEED HELP IN, IN, UM, LOCATING THAT WEBSITE, UM, FEEL FREE TO REACH OUT TO ME. I'M HAPPY TO HELP YOU ALL WITH THAT. SO IF THERE'S NO OTHER, UM, PRELIMINARY MATTERS, WHY DON'T WE GO AHEAD AND GET STARTED? UM, LET ME ASK, CAUSE I DON'T KNOW EVERYONE IN THE AUDIENCE, UM, WHO HAS QUESTIONS, UM, TODAY FOR AUSTIN ENERGY. OKAY. SO WE HAVE SEVERAL, UM, WE'VE RECEIVED THE QUESTIONS FROM, UM, THE ICA. WHY DON'T WE GO AHEAD AND START WITH THOSE QUESTIONS IF THAT'S ALL RIGHT. AND THEN WE CAN MOVE ON TO THE OTHER INDIVIDUAL TO HAVE QUESTIONS, UM, CLARENCE, YOU WANT TO COME AND HAVE A SEAT AND THEN WE CAN GO FROM THERE AND JOHN, YEAH, YOU AS WELL. I KNOW THIS FEELS REAL FORMAL, BUT WHAT THE INTENTION WAS THIS TOO WAS FOR THIS TO BE A PRETTY INFORMAL BACK AND FORTH. YEAH. CLARENCE JOHNSON. UM, OKAY, GREAT. UM, THEN WHY DON'T WE GO AHEAD AND GET STARTED? UM, SO YOU ALL PROVIDED US THE LIST OF 16 QUESTIONS PLUS SOME, UM, SUB-PARTS UM, AND WE CAN JUST DIVE IN, UM, THE FIRST QUESTION, UH, DEALING WITH THE COST OF SERVICE MODEL, UM, BRIAN, YOU WANNA TAKE A SHOT AT RESPONDING TO THAT? SURE. UM, SO AS FAR AS ADDING NEW, UH, CLASS ALLOCATION FACTORS, OUR MODEL WORKS, IT WORKS A LOT, LIKE, YOU KNOW, THE TYPICAL BOTTLES HE'D SEE, UH, YOU KNOW, BUILT, BUILT BY STAFF AND ADOPTED BY THE COMMISSION AND A LITIGATED CASE, OR THAT YOU SEE FOR A LOT OF OTHER UTILITIES. I GUESS ONE OF THE ONLY DIFFERENCES WE, WE USE DROPDOWN MENUS FOR THE ALLOCATION FACTORS. SO, UH, WHAT'D SHE'D HAVE TO DO IS GO TO THE WORK PAPER THAT HAS THE CLASS ALLOCATION DATA, AND THAT IS IT'S IN THE F SERIES OF SCHEDULES. UM, SO SCHEDULE F SIX HAS ALL THE CLASS ALLOCATION PROPORTIONS AT, AND THE WAY IT'S STRUCTURED IS FIRST, YOU'VE GOT THE NICKNAME OF THE CLASS ALLOCATION FACTOR IN COLUMN B. THAT'S WHAT IS GOING TO SHOW UP IN THE DROPDOWN MENU WHEN YOU GO TO CHANGE [00:05:01] AN ALLOCATION FACTOR. AND IF YOU LOOK TO THE, TO THE LEFT OF THE ROW NUMBERS, I FEEL LIKE I'M GETTING FEEDBACK HERE. UM, YOU CAN SEE THAT THERE'S LITTLE SUBTOTAL PLOT, YOU KNOW, THE LITTLE PLUS SIGN INDICATES A SUBTOTAL IN THE, IN THE MARGIN. AND IF YOU CLICK ON THOSE, YOU'LL SEE THERE'S A BUNCH OF BLANKS IN HERE. SO THIS IS ONE OF THOSE SITUATIONS WHERE YOU KNOW, THAT THE WORKPAPERS STRUCTURED SO THAT THE, UH, THE LOOKUP FORMULAS TO FIND THE PROPORTIONS I'VE IDENTIFIED A CERTAIN RANGE. AND WITHIN THAT RANGE ARE A BUNCH OF BLANKS, RIGHT? SO THE WAY YOU ACCESS THOSE BLANKS IS BY CLICKING ON THESE LITTLE SUBTOTAL LINES. THE FIRST ONE I SEE FOR EXAMPLE IS IN MICROSOFT EXCEL ROW NINE, IT SAYS, YOU KNOW, BLANK FOR THE NAME. AND THEN THE DESCRIPTION SAYS NOT IN USE, RIGHT? SO THIS IS ALL ON SCHEDULE F SIX. AND IF YOU JUST SCROLL OVER TO THE RIGHT AND PAST ALL THE PROPORTIONS, YOU'LL GET TO THE ALLOCATION DATA SECTION THAT THE PROPORTIONS ARE BUILT OFF, THAT BEGINS IN COLUMN V. UH, SO FOR EXAMPLE, YOU KNOW, THERE'S TYPE DATA IN HERE. AND, UH, I MEAN, I WISH I HAD A SCREEN. I COULD SHOW YOU, BUT IF YOU JUST, YOU KNOW, ARE YOU FAMILIAR WITH, YOU KNOW, SORT OF CHANGING ALLOCATION, ALLOCATION DATA AND ALLOCATION TABLE THAT, THAT CALCULATES THE PROPORTIONS, YOU JUST TYPE IN WHATEVER INFORMATION YOU WANT IN THERE. AND THEN IT WILL SHOW UP AUTOMATICALLY CALCULATE THE PROPORTIONS. AND THEN IF YOU RENAME IT AND, UM, COLUMN B CHANGE THE NAME IN COLUMN B TO WHATEVER YOU WANT TO NAME IT, AS IT SHOULD SHOW UP. THEN WHEN YOU GO INTO THE CLASS ALLOCATION SECTION OF THE MODEL, WHICH IS G SIX, THAT NEW NAMED FACTOR WILL THEN APPEAR RIGHT NOW, IF YOU LOOK IN THE SCROLL DOWN MENU, YOU'LL SEE THERE'S A BUNCH OF THEM THAT ARE CALLED BLANK, RIGHT? WELL THAT THE NEW NAME WILL APPEAR AUTOMATICALLY. AND THERE, THE MACRO AUTOMATICALLY REFRESHES THE, YOU KNOW, WHAT THE, UH, ALLOCATOR NAMES. SO I PUT THE NEW NAME IN COLUMN B, IS THAT WHAT YOU SAID? RIGHT. AND THEN IT'LL SHOW UP IN THE DROPDOWN MENU. WE'LL SHOW UP IN THE DROP DOWN. OF COURSE, YOU'VE GOT TO ADD THE ALLOCATION DATA STARTING IN COLUMN V AND THEN GOING OUT, SO SHOULD BE PRETTY STRAIGHTFORWARD. THERE'S PROBABLY 20 OR 30 BLANKS IN HERE. I'M GUESSING THAT'S PROBABLY GOING TO BE ENOUGH FOR YOU GUYS, WHATEVER YOU NEED TO DO. BUT IF YOU, IF YOU NEED TO ADD MORE THAN THAT, THEN, YOU KNOW, LET ME KNOW, AND I'LL WALK YOU GUYS THROUGH HOW TO DO THAT. OKAY. AND THE ONLY REASON I ASKED THIS QUESTION, I, I USE THIS MODEL THE LAST TIME IN THE LAST CASE. BUT, UH, AT THAT TIME THEY HAD JUST THE, YOU KNOW, BLANK, UH, BLINDS FOR OTHER ALLOCATION FACTORS. AND DIDN'T HAVE THE DROPDOWN MENU, I GUESS. BUT, UH, SO THE DROPDOWN MENU, HOW DO I ACCESS THAT AGAIN? WHAT DO I CLICK ON? UH, SO IF YOU GO TO SCHEDULE G SIX AND YOU KNOW, THIS ISN'T JUST TRUE OF CLASS ALLOCATION, IT'S ALSO TRUE FOR THE FUNCTIONALIZATION AND THE SUB FUNCTIONALIZATION CLASSICS SLASH CLASSIFICATION. AND YOU CLICK ON, UM, THE COLUMN, IT SAYS ALLOCATOR. SO IN G SIX IT'S COLUMN G YOU SEE A LITTLE GRAY ARROW TO THE RIGHT, YOU KNOW, WHEN YOU, WHENEVER EXCEL'S BUILT WITH A MACRO THAT HAS A DROPDOWN MENU AND YOU JUST CLICK ON THAT, AND THEN ALL THE FACTORS ARE LISTED. THERE'S A LOT OF THEM. SO YOU MIGHT HAVE TO SCROLL TO, TO WHEREVER YOU PUT THE, UH, THE NEW ONE, WE GET STUCK AND WE'RE TRYING TO WORK ON THIS. IS IT, WOULD IT BE, I MEAN, WHAT'S THE APPROPRIATE PROTOCOL. CAN WE CALL AND JUST ASK A COUPLE CLARIFYING QUESTIONS ABOUT HOW I DON'T HAVE AN OBJECTION OR CONCERN IF THEY WANT TO WORK TOGETHER DIRECTLY, THERE MAY JUST BE ONE LITTLE GLITCH AND SOMETHING WE CAN'T FIGURE OUT. SURE. OKAY. ANYTHING FURTHER ON ONE? THE ONLY OTHER COMMENT I WAS GOING TO MAKE IS IT'LL BE IMPORTANT THAT YOU CREATE A UNIQUE, UM, NAME FOR ANY NEW ALLOCATORS. UH, IF YOU CAN'T NAME IT, THE EXACT SAME THING THAT ALREADY EXISTS, OTHERWISE IT'S GOING TO THE, MODEL'S NOT GOING TO KNOW WHICH ONE OF THOSE YOU'RE INTENDING TO REFER TO, BUT OTHER THAN THAT, IT'S PRETTY SURE TO BE VERY STRAIGHTFORWARD. OKAY. UH, W DID YOU DO SOME ADDITIONAL SUB-PARTS HERE ON THIS QUESTION ONE? UH, AND YES, SIR. I DIDN'T KNOW IF YOU WERE GOING TO GET TO THOSE OR NOT. SO, ABSOLUTELY. OKAY. UM, SO PART B, PLEASE EXPLAIN OR IDENTIFY THE DATA, WHICH IS PROTECTED AND CANNOT BE MODIFIED. SO THERE'S NO PROTECTED DATA IN THE MODEL. OKAY. THE ONLY HARD DATA THAT COMES IN, YOU CAN FIND IT, YOU KNOW, IF YOU DIG DOWN INTO THE WORK PAPERS, YOU'LL SEE THERE'S HARD CODED INPUTS FROM [00:10:01] THERE. OF COURSE, IT'S ALL FORMULAS. SO EVEN THOUGH THE FORMULAS ARE NOT PROTECTED, YOU CAN OVERWRITE THEM. YOU WILL BREAK THE MODEL. IF YOU, YOU KNOW, TYPE INTO A CELL THAT HAS A FORMULA, YOU KNOW, AND IT, AND IT DOESN'T FLOW THROUGH TO THE REST OF THE MODEL. UM, SO WITH THAT CAVEAT, I GUESS WHEN YOU SAY, UH, SO IN ORDER, SO IF YOU'RE CHANGING THE ALLOCATION FACTOR, YOU DON'T HAVE TO CHANGE THE FORMULA OR, OR NOT. YEAH, THAT'S RIGHT. ONCE YOU'VE BUILT THAT ALLOCATION FACTORS, IF YOU SELECT THE DROPDOWN MENU, YOU SHOULD BE GOOD. OKAY. OKAY. IS THAT, DID YOU HAVE A FOLLOW-UP ON SUBPART B? OKAY. SO PART C PLEASE IDENTIFY THE CELL OR CELLS, WHICH SHOW HOW THE RESIDENTIAL CUSTOMER CHARGE IS CALCULATED. SO THIS IS ONE OF THESE THINGS WHERE IT MIGHT BE HARD TO FOLLOW, I GUESS I'M GOING TO HAVE TO DIRECT YOU TO IT. UM, IT IS THE UNIT COSTS ARE SHOWN IN SCHEDULE G EIGHT AND THE CUSTOMER CHARGE IS DESIGNED BASED ON THE UNIT COSTS. IT'S ESSENTIALLY SET DIRECTLY TO THE UNIT COST OF THE UNIT COSTS CAN BE FOUND FOR THE RESIDENTIAL CLASS C SCHEDULE G SIX. YOU HAVE TO SCROLL QUITE A WAYS DOWN SCHEDULE G SIX. I'M STILL, I'M STILL SCROLLING. OH, I'M SORRY. IT'S ON SCHEDULE GA THE, UH, THE CLASS ALLOCATIONS ON GSX AND IT IS MICROSOFT EXCEL CELL J 4 36 AND SHOWS $24 AND 66 CENTS PER CUSTOMER PER MONTH. SO I GUESS WE'VE ROUNDED UP TO 25. YEAH. I CAN HELP YOU WITH THAT RIGHT NOW, ACTUALLY. SO WE DO HAVE METERS, WHICH ARE FUNCTIONALIZED TO DISTRIBUTION, BUT THEY'RE CLASSIFIED AS CUSTOMER. SO THERE'S A, THERE'S A SMALL PIECE THAT GETS PULLED IN FROM THE DISTRIBUTION FUNCTION. AND THAT IS, UM, IF I CAN FIND THE DOLLAR AMOUNT FOR YOU, IF I REMEMBER IT'S SOMETHING LIKE $10 MILLION, AND WHILE BRIAN'S DOING THAT, I WILL SAY THAT, YOU KNOW, ON THAT WORKSHEET THAT WE'RE TALKING ABOUT, YOU KNOW, YOU'LL, YOU'LL SEE THE VALUE, AND THEN YOU CAN JUST CLICK ON THE CELL AND LOOK AT THE VALUE AND IT'S A FORMULA, AND YOU CAN JUST GO BACK TO THE SOURCE, YOU KNOW, FOLLOW IT UP THE WORKSHEET TO SEE WHERE EVERY NAME NUMBER CAME FROM, UH, ULTIMATELY, UM, INCLUDING WHERE THEY ORIGINALLY CAME OFF OF ANOTHER SCHEDULE G SIX. SO THAT'S THE TRACE PRECEDENCE THING. YEP. YEAH. SO CELL J 1 27 SCHEDULED GA SHOWS THE METER COSTS ASSIGNED TO THE RESIDENTIAL CLASS. THAT'S $10.9 MILLION. AND IF YOU DIVIDE THAT BY THE NUMBER OF THE, OR, SORRY, I SHOULD SAY THE GET ADJUSTED NUMBER OF CUSTOMER MONTHS, ABOUT 5.7, THAT GIVES YOU AN AMOUNT OF $1 91 CENTS PER CUSTOMER PER MONTH FOR METER COSTS. AND THEN ALL THE REST OF IT IS THE, ESSENTIALLY THE ENTIRETY OF THE CUSTOMER FUNCTION IS CLASSIFIED AS CUSTOMER. AND IF YOU ADD THAT UP AND DIVIDE BY CUSTOMER A MONTH, YOU GET $22 AND 76 CENTS PLEASE TURN ON YOUR MICROPHONE. YOU KNOW, THAT WOULD, UH, CLASSIFY THE, YOU KNOW, LIKE, LET'S SAY NINE ACCOUNT NINE 20 OR 9 21 BY, YOU KNOW, A CUSTOMER COMPONENT OR NOT. UH, YEAH. SO THE, THE AAG ACCOUNTS, I I'D SUGGEST YOU START WITH A SCHEDULE G ONE. AND SO G ONE IS GOING TO BE A LISTING OF HOLISTIC LISTING OF ALL THE FERC ACCOUNTS AND ALL THE EXPENSES IN TOTAL, WHICH THINK IT FUNCTION IT FUNCTIONALIZED, UM, TO PRODUCTION, TRANSMISSION, DISTRIBUTION, AND CUSTOMER. SO ON THAT WORKSHEET, YOU WILL SEE EVERY DOLLAR THAT ENDS UP IN THE CUSTOMER [00:15:01] FUNCTION, WHICH THEN GOES ON TO A SUBSEQUENT WORKSHEET TO BE ALLOCATED OUT TO, TO CUSTOMER CLASSES. BUT IF YOU WANTED TO SEE THE DOLLARS INVOLVED IN BEING ASSOCIATED WITH THE CUSTOMER FUNCTION, THAT THAT WORKSHEET WOULD, WOULD TELL YOU THOSE DOLLARS AND WHERE THEY CAME FROM. OKAY. YOU KNOW, I JUST GOT SOME MORE, I NEGLECTED TO TELL YOU GUYS GOING BACK TO THE QUESTION ABOUT WHAT'S PROTECTED AND WHAT'S NOT. AND I MENTIONED THE HARD-CODED VALUES. WE IDENTIFY THOSE WITH LIGHT BLUE SHADING IN THE MODEL. SO WHEREVER YOU SEE, LIGHT BLUE SHADING, THAT INDICATES A HARD-CODED VALUE. OKAY. I THOUGHT I SAW SOME LIGHT BLUE SHADING SOMEWHERE. SO THAT'S THE REASON I WAS ASKING THE QUESTION MINISTRY MYSTERY IS SOLVED. OKAY. LET'S SEE. THERE'S MORE, THERE'S ANOTHER SUBPART, RIGHT? SO SOME PART D DID YOU HAVE ANY MORE QUESTIONS ABOUT SUBPART C? NO, I THINK THAT'S OKAY. OKAY. SO PART D SAYS AND USING THE MODEL, IS THERE A WAY FOR THE USER TO MOVE MORE QUICKLY BETWEEN SHEETS I'M CHUCKLING? BECAUSE I WISH THERE WERE, UH, THERE'S THE, YOU KNOW, AS YOU GUYS KNOW, THERE'S A LOT OF WORKSHEETS IN THE MODEL. I MEAN, THE ONLY WAY I KNOW REALLY IS TO DO THE THING WHERE YOU, RIGHT. CLICK ON THE ARROW, THAT, THAT, THAT SCROLLS, THE SH THE WORKSHEETS AND THAT YOU COULD JUMP INSTEAD OF HAVING TO GO THROUGH ALL OF THEM, BUT ABSENT THAT NO, WE DIDN'T BUILD ANY KIND OF, UH, HYPERLINKS OR ANYTHING LIKE THAT. YEAH. I THOUGHT MAYBE IN THE TABLE OF CONTENTS, YOU MIGHT HAVE A HYPERLINK TO GET TO THE SCHEDULES, BUT, UH, OKAY. UH, THE, THE ONLY OTHER OBSERVATION THAT MIGHT BE HELPFUL IS IF YOU'RE LOOKING AT A FORMULA, YOU KNOW, YOU CAN PRAY, UH, TRACE PRECEDENCE. SO YOU CAN FIND WHERE ALL THE VALUES THAT ARE REFERRED TO IN THAT FORMULA, YOU CAN, YOU KNOW, IMMEDIATELY BE TAKEN TO THOSE CELLS AND IN THE WORKSHEET. UM, AND IF THAT'S SOMETHING THAT, YOU KNOW, YOU'RE NOT FAMILIAR WITH, WE CAN CERTAINLY SHOW YOU HOW THAT WORKS AND MAY OR MAY NOT BE HELPFUL TO YOU. OKAY. ALL RIGHT. THEN LET'S MOVE ON. WE'VE GOT A QUESTION ABOUT OUTSIDE CITY RATES, UH, GRANT. YEAH. SO THE THAT'S A CITY RATES. THERE'S LIKE, THERE'S A COUPLE OF SUB PORTIONS OF THIS QUESTION, BUT, BUT THE, THE, THE FIRST PART OF THE QUESTION IS ESSENTIALLY DOES AUSTIN ENERGY PROPOSED TO, DOES, CAN YOU DISCONTINUE THE, UH, DIFFERENT RATES THAT ARE ASSESSED TO CUSTOMERS OUTSIDE THE CITY LIMITS AS COMPARED TO INSIDE THE CITY LIMITS? AND THE ANSWER IS LARGELY YES. AND FOR BASE RATES, THE ANSWER IS YES, THERE, THERE WILL STILL CONTINUE TO BE A DIFFERENCE, UM, IN TERMS OF THE SOUTH SERVICE AREA, LIGHTING PA PASS THROUGH, WHICH IS ONLY APPLICABLE TO CUSTOMERS INSIDE THE CITY LIMITS. BUT, BUT WHEN LOOKING AT THE BASE RATE COMPONENTS OF THE, OF THE OVERALL PROPOSAL, UM, WE'RE, WE'RE SUGGESTING THAT, YOU KNOW, THE INSIDE AND OUTSIDE CYLINDERS CUSTOMERS SHALL BE, UH, CHARGED THE EXACT SAME BASE RATES. UM, THERE, THERE WAS THEN A QUESTION ABOUT HOW THAT THEN WOULD BE REFLECTED IN THE BILL IMPACT TABLES THAT ARE EMBEDDED WITHIN THE MODEL ITSELF. AND SO IF YOU'RE LOOKING AT THE WORKSHEET AND THE QUESTION YOU REFERENCED, THE SPECIFICALLY A WORKSHEET THAT LOOKS AT BILL IMPACTS FOR CUSTOMERS OUTSIDE THE CITY LIMITS. AND SO THAT WORKSHEET IS REFLECTIVE OF THOSE OF THE STARTING POINT, UH, BEING DIFFERENTIATE RATES, THE CURRENT RATES, WHICH ARE DIFFERENT BETWEEN INSIDE AND OUTSIDE CITY LIMITS, YOU KNOW, ARE REFLECTED IN THAT WORKSHEET. UM, SO IN OTHER WORDS, CUSTOMERS OUTSIDE CITY LIMITS ARE STARTING FROM A DIFFERENT BILL THAN CUSTOMERS INSIDE CITY LIMITS, BUT THEN FOR THE PROPOSED RATES, UM, FOR AT LEAST FOR THE BASE PORTION OF THE BILL, IT WOULD BE EXACTLY THE SAME, REGARDLESS OF WHETHER YOU'RE LOOKING AT INSIDE OR OUTSIDE CITY LIMITS CUSTOMERS. AND I'M NOT SURE IT WAS, THAT WAS THAT IN DEIDRE QUESTION. YES. YES. WHETHER, YOU KNOW, WHEN IT SHOWS A PERCENTAGE SAY FOR A RESIDENTIAL TIER, DOES, YOU KNOW, OFF, DOES THAT INCLUDE, UH, YOU KNOW, HAVING TO, FOR THE OUTSIDE CITY CUSTOMERS MOVING FROM A RATE THAT INCLUDED THAT 5%, UH, REDUCTION AND THEN TO THE POST RATE. SO IN OTHER WORDS, IS THERE ANOTHER BUILDING? I CAN'T REMEMBER IF THERE WAS A BILL IMPACT SCHEDULE THAT IS ALL RESIDENTIAL CUSTOMERS INSIDE AND OUTSIDE THE CITY. IS THERE, YOU MEAN COMBINED TOGETHER? NO. THAT EVERYTHING IS SEGREGATED OUT BETWEEN INSIDE AND OUTSIDE AND IN THE PRESENTATION. OKAY. AND THEN THE FINAL PORTION OF YOUR QUESTION, UH, ASKED FOR A QUANTIFICATION OF, UH, THE, THE, THE DOLLAR AMOUNT OF THE DIFFERENCE REPRESENTED BY THE DIFFERENCE BETWEEN INSIDE AND OUTSIDE CITY CUSTOMERS. AND I GUESS I WILL CLARIFY JUST BRIEFLY FOR THOSE THAT ARE NOT AS [00:20:01] FAMILIAR WITH THIS TOPIC. IT IS NOT A DISCRETE 5%, I GUESS THE QUESTION COUCHED THE DISCOUNT AS BEING A 5% DISCOUNT. IT'S NOT EXACTLY THAT. I MEAN, IT, THERE ARE DIFFERENT RATES, IT'S NOT FORMULAICALLY, YOU KNOW, 5%. SO JUST FOR ANYONE ELSE, THAT'S LISTENING, BUT NOT FAMILIAR WITH THAT SET UP. UM, AND SO WE, WE HAVE A CALCULATION THAT IDENTIFIES, YOU KNOW, WHAT BASE RATE REVENUES FOR CUSTOMERS OUTSIDE THE CITY LIMITS, UH, WOULD BE UNDER THE CURRENT RATES, IF THEY WERE PAYING THE RATES THAT INCITES THEM, ITS CUSTOMERS ARE PAYING. UM, AND SO WE CAN PROVIDE THAT. I'M NOT SURE WHAT THE MECHANISM IS, BUT WE HAVE THAT NUMBER. WE CAN PROVIDE IT TO YOU. UM, IT IS, UM, PREDOMINANTLY RESIDENTIAL CLASS, ALTHOUGH THERE ARE SOME SMALL DIFFERENCES FOR A COUPLE OF THE COMMERCIAL CLASSES, THE DOLLARS INVOLVED ARE PRETTY DIMINIMOUS. OKAY. ALL RIGHT. THEN MOVING ON TO THREE. YEAH. WE'VE GOT A MULTIPLE PART QUESTION ADDRESSING LOW DISPATCH, DISPATCH EXPENSE, UH, GRANT YOU WANT TO ADDRESS THOSE? ABSOLUTELY. SO, UM, I GUESS THE, THE OVERALL QUESTION IS ASKING ABOUT LOAD DISPATCH AND ALL OF THE FORMS WHERE IT SHOWS UP IN THE ANALYSIS. AND I GUESS I'M GOING TO START WITH, UH, THE LOO DISPATCH THAT SHOWS UP WITHIN THE PRODUCTION RELATED ACTIVITIES. UM, AND SO THAT'S, UH, THAT WOULD BE IN FORK ACCOUNT 5, 5, 6. SO, AND I GUESS THE BEGINNING OF THE QUESTION IS, YOU KNOW, EXPLAINED IT TO HOW THE, THERE IS A, WHAT IS LABELED RECOVERABLE AND NONRECOVERABLE, UH, EXPENSE IN THAT, IN THAT FORK ACCOUNT. AND SO UNIVERSALLY, AND IT'S NOT JUST IN THIS PERK ACCOUNT, BUT IT SHOWS UP IN A COUPLE OTHER PLACES AS WELL, BUT UNIVERSALLY IN THE RATE FILING PACKAGE, THE REFERENCE TO RECOVERABLE IS IN REFERENCE TO RECOVERABLE THROUGH THE PSA, THE POWER SUPPLY ADJUSTMENT, AND SO DOLLARS THAT ARE IDENTIFIED IN THE RATE VOLUME PACKAGE AS BEING RECOVERABLE ARE DOLLARS THAT END UP BEING RECOVERED THROUGH THE PSA. AND SO THEREFORE NOT IN, IN BASE RATES. SO THAT TAKES THAT, THAT ACCOUNTS FOR THE VAST MAJORITY OF THE DOLLARS THAT ARE IN THAT PARTICULAR ACCOUNT FOR 5, 5, 6, THERE ARE SOME DOLLARS IN A FERC ACCOUNT, 5, 5, 6, UM, BETTER NONRECOVERABLE AND ABOUT, UH, AND THIS IS AN ESTIMATE, BUT AROUND 70% OF THOSE DOLLARS ARE ACTUALLY, UH, RELATED TO ERCOT ADMIN FEES. AND THOSE, THOSE DOLLARS END UP IN A DIFFERENT PASS THROUGH, THEY END UP IN THE REGULATORY CHARGE. SO THOSE DOLLARS HERE, AGAIN, DO NOT END UP IN, IN BASE RATES. THERE'S THEN A VERY SMALL ROW RELATIVE. THE OTHER NUMBERS IN THAT ACCOUNT, THERE'S A SMALL AMOUNT OF DOLLARS THAT ARE THEN ASSOCIATED, UH, WITH, UH, NONRECOVERABLE, UH, 5, 5, 6 THAT IS DOESN'T END UP IN THE REGULATORY CHARGE. AND THAT DOES END UP IN REC BASE RATES. AND THOSE ARE PREDOMINANTLY COSTS, UH, THAT ARE RELATED TO, UM, EMO THE, THE PEOPLE, THE PERSONNEL AND AUSTIN ENERGY THAT ARE THEIR ENERGY MARKET OPERATIONS FOLKS. AND SO THAT, THAT, THAT PIECE OF, UH, OF, OF, OF THAT OVERALL ACCOUNT DOES END UP IN BASE RATES. OKAY. NOW, AS I RECALL, UH, ON, I LOOKED AT THE SCHEDULE WITH 5 56, IT ON, UH, FOR THE, UH, RECOVERABLE, IT WAS A NEGATIVE NUMBER AND THEN, OR EXCUSE ME FOR THEM. YEAH. I THINK FOR THE RECOVERABLE, IT WAS A NEGATIVE NUMBER AND THEN A POSITIVE NUMBER FOR NONRECOVERABLE. I WAS ASSUMING THAT THE POSITIVE NUMBER WAS WHAT, WHEN IT WENT INTO THE BASE RATES, BUT YOU'RE SAYING THAT'S MOSTLY DID NOT GO INTO BASE RATES. THAT'S RIGHT. SO, UM, THE, THE, THE POSITIVE NUMBER THAT'S SMALLER, THE TWO, UH, NUMBERS THERE AND ABSOLUTE TERMS, UM, THE MAJORITY OF IT, 70% OR SO APPROXIMATELY ENDS UP AT A REGULATORY CHARGE. SO, UH, ONLY A SMALL SUBSET OF THAT OVERALL FORK ACCOUNT ENDS UP IN, IN BASE RATES. AND IT'S RELATED TO PEOPLE, UH, YOU KNOW, THE COST OF PEOPLE THAT DO THE, UH, ENERGY MARKET OPERATIONS FOR AUSTIN ENERGY. OKAY. AND, UM, I ASSUME THERE'S A SCHEDULE THAT WOULD SHOW ME WHAT THAT PAR PORTION IS, OR YOU CAN, YOU CAN, UH, YOU CAN FIND THAT ON SCHEDULE G OVER [00:25:01] TO PROBABLY TO, UM, YEAH. PRODUCTION, IF YOU, IF YOU'LL REFER TO SCHEDULE G2, UM, AND GO DOWN TO THE RELEVANT, UH, FERC ACCOUNT, YOU'LL SEE THAT THERE'S, YOU KNOW, $8.4 MILLION APPROXIMATELY IN A COLUMN LABELED OTHER, AND IT'S OTHER, BECAUSE IT'S, IT'S ENDED UP, IT ENDS UP IN A PASS THROUGH CHARGE. UM, AND THEN THE REMAINDER, THE ROUGHLY $2.6 MILLION THAT, THAT IS LEFT IN THAT BURKE ACCOUNT ENDS UP IN, UM, IN BASE RATES. AND IT'S ALLOCATED TO IT ON A DIFFERENT WORKSHEET ON, ON A SCHEDULED . IT IS THEN ALLOCATED TO CUSTOMER CLASSES BASED OFF THE ERCOT 12 CP. OKAY. YOUR NEXT QUESTION, UM, WAS ABOUT, UM, OTHER POWER EXPENSES THAT SHOW UP IN, UH, ANOTHER WORK ACCOUNT AND THEN FOR ACCOUNT 5, 5, 7. UM, AND MY, MY UNDERSTANDING, UM, IS THAT THOSE ARE PREDOMINANTLY LABOR RELATED EXPENSES, UM, OF AUSTIN ENERGY. AND WE CAN GIVE BACK TO YOU ON EXACTLY, YOU KNOW, WHAT, WHAT THOSE, THOSE PEOPLE ARE. OKAY. AND IT LISTS ANY, IF ANYBODY HAS, UM, SOME FURTHER EDIFICATION ON THAT. YEAH. JUST GOING TO GET BACK ON THAT. UH, SO THE, THE, THE WHY THE OTHER PART OF YOUR QUESTION WAS, YOU KNOW, AND HOW ARE THOSE COSTS THAT ARE QUOTE UNQUOTE, OTHER POWER EXPENSES, UH, HOW ARE THEY ALLOCATED? AND THEY ARE ALLOCATED TO CUSTOMER CLASSES BASED OFF ERCOT 12 CP. OKAY. AND THEN THE, I GUESS THE SECOND HALF OF THE QUESTION IS ABOUT LOW DISPATCH EXPENSES, UM, THAT ARE MORE RELATED TO THE, THE WIRES, THE, THEIR TRANSMISSION AND THE DISTRIBUTION FUNCTION. AND SO THOSE, THOSE EXPENSES ACTUALLY SHOW UP IN, IN DIFFERENT, UH, FOR ACCOUNT NUMBERS THEN, AND THEN THE 5, 5, 6 THAT WE'VE BEEN TALKING ABOUT THUS FAR. AND SO THERE, THE, THE PR THE ONES THAT ARE RELATED TO TRANSMISSION WIRES SHOW UP IN FERC 5 61 AND DISTRIBUTION SHOVAN 5 81. AND SO, BECAUSE THEY ARE IN SEPARATE FERC ACCOUNTS, THEY ARE ALREADY, UM, IN A SENSE FUNCTIONALIZED TO THOSE DIFFERENT FUNCTIONS. NOW, AS YOUR QUESTION SUGGESTED, YOU KNOW, ARE THESE THE SAME PEOPLE? SO FOR THE WIRES, UH, PORTION, SO MEANING THE TRANSMISSION, THE DISTRIBUTION PORTION, THOSE ARE THE, THE, THE FOLKS THAT ARE MAKING THOSE, UM, UH, MONITORING THE SYSTEM, MAKING, UH, THOSE, UH, ADJUSTMENTS OVERALL ARE THE SAME PEOPLE, UM, IN THE SAME CONTROL ROOM, PRESUMABLY, UM, IT'S BUT, BUT THEY ARE, YOU KNOW, SEPARATED OUT IN TERMS OF THE ACTIVITIES THAT THEY'RE PERFORMING BETWEEN TRANSMISSION AND DISTRIBUTION. THEY'RE NOT THE SAME PEOPLE THAT ARE, THAT, THAT SHOW UP IN, IN THE PRODUCTION RELATED, UM, LOW DISPATCH. THE, THAT IS, UH, THAT'S A SEPARATE GROUP OF PEOPLE. OKAY. AND I THINK THERE WAS THEN A QUESTION ABOUT HOW THE, THE, THE, THE T AND D THE TRANSMISSION AND DISTRIBUTION, UH, COSTS END UP BEING ALLOCATED TO CUSTOMER CLASSES. UM, THE TRANSMISSION, UM, RELATED LOAD DISPATCH COSTS ARE UNDER THE PURVIEW OF THE REGULATED, UH, REGULATED BY THE PUBLIC UTILITIES COMMISSION OF TEXAS. AND SO THEY, THEY DON'T GET ALLOCATED TO CUSTOMERS AND, AND THIS ANALYSIS, BECAUSE TH TH THOSE COSTS AREN'T RECOVERED, UH, IN BASE RATES, UM, FOR THE DISTRIBUTION RELATED LOW DISPATCHING, THOSE ARE ALLOCATED TO CUSTOMER CLASSES BASED OFF THE, UH, 12 NCP ALLOCATOR. AND YOU CAN SEE THAT, UH, ON, UM, SCHEDULE G SIX [00:30:14] I DON'T KNOW IF YOU SAW CLEARANCE, BUT WE ACTUALLY HAVE A SEPARATE ACHY. I USED TO CALL THAT EITHER A SUB FUNCTIONALIZATION OR A CLASSIFIED SUB FUNCTIONALIZATION DISTINCTLY FOR LOW DISPATCHING, WHICH I THINK IS KIND OF UNUSUAL. SO IT HAS ITS OWN DISTINCT, UH, LINE ITEM IN THE CLASS ALLOCATION IT'S, UM, IT SAYS G SIX ROW 20 MICROSOFT EXCEL ROW 27 AND I, I DON'T S I BELIEVE I MAY HAVE COVERED ALL OF YOUR QUESTIONS IN THAT LOAD DISPATCH SECTION, BUT IF YOU THINK I'VE MISSED SOMETHING, FEEL FREE TO POINT THAT OUT TO ME. UM, I THINK THE ONLY THING YOU SAID YOU MIGHT NEED TO GET BACK TO ME ON WAS THE OTHER POWER EXPENSES I HAVE TO, UM, OKAY. I THINK THAT'S ENOUGH FOR THREE. ALL RIGHT. THEN LET'S MOVE ON TO FOUR. YOU'RE ASKING WHERE THE PROOF OF REVENUES IS, UM, BRIAN. SURE. SO YOU GO TO WORK PAPER H DASH FIVE, THAT WHOLE SERIES OF THE PROOF OF REVENUE STATEMENTS FOR EACH CLASS. AND, UM, I AM TEMPTED TO WALK YOU THROUGH ONE OF THEM AND GIVE YOU THE LAY OF THE LAND, BECAUSE OUR PROOF OF REVENUE STATEMENTS ARE A LITTLE BIT MORE DETAILED THAN WHAT YOU'D TYPICALLY SEE. UM, SO YOU HAVE TO BE A LITTLE BIT, I GUESS, A LITTLE BIT MORE CAREFUL, UH, IN, IN TRYING TO CAPTURE EVERYTHING BECAUSE WE'VE GOT INSIDE CITY AND OUTSIDE CITY BROKEN OUT SEPARATELY FOR THE PRESENT BASED REVENUES CALCULATIONS. AND THEN, UM, OF COURSE WE ALSO HAVE A CHANGE TO THE TIER STRUCTURE THAT WE'RE PROPOSING. SO THE TIER STRUCTURE FOR THE CALCULATION OF PRESENT BASED REVENUES IS DIFFERENT THAN THE TIER STRUCTURE FOR THE CALCULATION OF PROPOSED SPACE REVENUES IN EACH TIER. AND THEN YOU ALSO HAVE TO BE CAREFUL TO NOTE THAT WE HAVE A SEPARATE SECTION FOR RESIDENTIAL CAP CUSTOMERS. SO YOU HAVE TO ADD A KIND OF ALL THE KWH AND ALL THE REVENUES, UH, TOGETHER, DEPENDING ON WHAT YOU'RE I GUESS, LOOKING TO DO. UM, SO THAT'S ONE CAVEAT, AND THEN THERE'S ALSO THE PASS THROUGH STUFF DOWN BELOW, AND IT STARTS, THERE'S A HEADER THAT SAYS OTHER CHARGES WHEN YOU GET TO THAT, YOU'RE NOT, IT'S NOT BASE RATES ANYMORE. NOW YOU'RE INTO THE PAST THROUGH STUFF. SO I'M SURE I'VE MADE THE MISTAKE OF ACCIDENTALLY PULLING IN STUFF THAT'S PASSED THROUGH STUFF. AND THEN IF YOU GO PAST, IF YOU SCROLL TO THE RIGHT ON THESE PROOF OF REVENUE SCHEDULES, THERE'S LIKE A COST TO SERVICE SECTION, WHICH, YOU KNOW, JUST PULLS IN THE UNIT COSTS. AND, YOU KNOW, FOR EXAMPLE, FOR THE RESIDENTIAL CLASS, WE'VE GOT THE UNIT COST SHOWN STATED AS A DOLLARS PER, UH, KWH, UH, C IS THAT THERE'S A, THERE'S A UNIT COST IN HERE. THERE'S AN ENERGY UNIT COST IN HERE AND THE COST OF SERVICE SECTION. I'M NOT SURE WHAT IS IN THAT. AND FRANKLY, I DON'T WANT TO, I DON'T WANT TO JUST SPEAK OFF THE CUFF. UM, OBVIOUSLY WE NOT, WE HAVEN'T CLASSIFIED ANY OF THE COSTS THAT ARE FEEDING THAT AS ENERGY RELATED. UH, AND THEN IF YOU KEEP SCROLLING YOU YET AND YOU GO OUT TO RATE EACH YEAR, THERE'S A SEPARATE SECTION FOR INSIDE AND OUTSIDE CITY FOR RATE YEAR ON THAT CORRESPONDS TO PR REVENUES UNDER PROPOSED RATES. AND IT'S THE SAME THING AS FAR AS REVENUE AS CAP AND ANOTHER NON CAP, RESIDENTIAL BEING BROKEN OUT SEPARATELY. AND THEN THE CAUTIONING ABOUT THE TIER OF THE CHANGE TO THE TIER STRUCTURE. YOU CAN SEE THE NEAR THE NEW TIER STRUCTURE, UH, IN COLUMN N FOR THE RESIDENTIAL PROOF OF REVENUES, YOU KNOW, ZERO TO 300, UH, AT 300 TO TWO FA UH, 1200 AND ABOVE 1200. AND THEN IT ALSO SHOWS SHOW THE KW AGENT INSIDE THAT'S RIGHT. AND IT ALSO SHOWS THE NUMBER OF KWH IS THERE THAT ARE IN KIND OF THE, UH, THE MARGINS BETWEEN WHERE THE NEW PROPOSED TIERS ARE AND THE OLD AND THE OLD TIERS WHERE, SO FOR EXAMPLE, CURRENT TIER ONE IS ZERO TO 500 NEW PROPOSED TIER ONE TO ZERO TO 300. SO IN THE PROPOSED RATES, [00:35:01] YOU ALSO HAVE AN INCREMENT FOR THREE TO 500. SO IF YOU WANT TO TRY TO GET TO APPLES, TO APPLES WITH ZERO TO 500, YOU'D ADD THOSE, ADD THOSE TWO TOGETHER. AND THE SAME THING AS THEN, WE'VE GOT 500, 1000. YOU CAN SEE THE UNITS AND THE REVENUES FOR THAT, EVEN THOUGH WE'RE NOT PROPOSING A THOUSAND KWH BREAK POINT IN THIS CASE. SO DOES THAT MAKE SENSE? I THINK SO. I'LL HAVE TO LOOK AT THAT, BUT, UH, I, I DON'T RE PART OF THE REASON I ASK THIS QUESTION IS I THINK I HAD NOT REVIEWED WORK PAPER H FIVE. SO, UH, BUT I'LL LOOK AT THAT. I HAVE A RELATED QUESTION, JUST, JUST FOR MY CURIOSITY, I ASSUME WHEN YOU'RE DOING YOUR PROPOSAL, YOU TAKE, YOU'RE TAKING THE, UM, THE ACTUAL REVENUES THAT YOU HAD AND JUST APPLYING THEM TO THE NEW YOU'VE TAKEN THE SAME KWH, OR YOU'RE NOT, UM, ASSUMING THAT THERE'S GOING TO, OR ARE THERE ANY CHANGES THAT YOU ARE, THAT YOU'RE SUGGESTING IN THE WAY PEOPLE ARE GOING TO CONSUME UNDER THE NEW PROPOSED, UH, TIERS AND PROPOSED? NO, WE'RE NOT MAKING ANY ADJUSTMENTS SAY FOR A PRICE RESPONSE. SO, YOU KNOW, WE'VE GOT PRICE ELASTICITY OF DEMAND OR SOMETHING LIKE THAT. IT'S THAT THE TOTAL NUMBER OF KWH IS OF THE SAME UNDER CURRENT AND PROPOSED RATES. OKAY. ALL RIGHT. THEN LET'S MOVE ON TO QUESTION FIVE, QUESTION FIVE HAS THREE PARTS, UM, GRANT YOU WANT TO ADDRESS THE QUESTIONS? SOME PART A AND B. SURE. UM, SO THE FIRST PART OF THE QUESTION IS DID THE AVERAGE BILLS THAT ARE SHOWN IN THE BILL IMPACT SHEETS, AND THERE'S A REFERENCE TO A SCHEDULE INCLUDE PASSER REVENUES OR ONLY BASE RATE REVENUES. IT IS INCLUSIVE OF THE WHOLE BILL. SO THERE IS AN, A PASS THROUGH REPRESENTATION IS, IS IN THAT NUMBER IS NOT JUST THE BASE RATE PORTION OF THE BILL. UM, AND THEN THE QUESTION GOES ON TO ASK, UM, YOU KNOW, CAN, HOW COULD YOU SEE JUST THE BASE RATE PORTION? AND SO THERE IS NOTHING ALREADY SET UP IN THE MODEL, UM, TO SHOW YOU JUST THE BASE RATE PORTION OF THE BILL IMPACTS, BUT YOU COULD VERY EASILY, UM, BECAUSE THE, THE PASS-THROUGH RATES THAT ARE BEING REFERENCED TO CALCULATE THE BILLS THAT ARE ON THAT WORKSHEET ARE ALL OFF TO THE RIGHT ON THE WORKSHEET ITSELF ON THE, YOU KNOW, IF YOU SCROLL OVER TO THE RIGHT-HAND SIDE OF THE, THE WORKSHEET, ALL THE COMPONENT PIECES ARE, ARE LISTED OUT THERE ON THE RIGHT HAND SIDE, THEY MAY OR MAY NOT BE IN A HIDDEN COLUMN. SO YOU MIGHT HAVE TO UNHIDE THE COLUMN. UH, IT WAS JUST FOR PRINTING PURPOSES, IT WAS GOING TO BE, WE DIDN'T WANT TO PRINT THAT. UM, BUT YOU CAN GO IN AND JUST DELETE ALL OF THE PAST THROUGH, UH, COMPONENTS OF THE BILL AND THE WORKSHEET WILL THEN DISPLAY, YOU KNOW, ONLY THE, THE BASE RATE PORTION OF THE BILL IMPACT. UM, YOU KNOW, IT, THAT IS NOT NECESSARILY THE WAY THAT THE, THE WORKSHEET WAS DESIGNED. UH, BUT, BUT THAT, THAT, THAT IS THE ANSWER THAT YOU'LL GET OUT OF THAT PROCESS. I WOULD JUST CAUTION YOU, IF YOU DO DELETE THOSE, YOU KNOW, EITHER SAVE THAT AS A SEPARATE VERSION OR DON'T SAVE IT, IF YOU'RE INTENDING TO GO BACK AND WANTING TO SEE THE FULL BUDGET BILL IMPACT. SO IS THERE A ROUGH PERCENTAGE THAT THE BASE RATES REFLECT OF THE AVERAGE RESIDENTIAL BILL? I WON'T HOLD YOU TO IT. I DON'T WANT TO GET BOTH OF THESE FIGHTING WITH EACH OTHER. THE, UM, YEAH. SO WHAT, WHAT, WHAT PROPORTION OF THE, OF THE, THE TYPICAL RESIDENTIAL BILL OR THE AVERAGE RESIDENTIAL BILL IS, UM, IS BASE REVENUES AND HOW MUCH IS EVERYTHING ELSE? I BELIEVE IT'S ROUGHLY 50, 50. UH, THAT'S IT, THE REST OF YOU, DOES THAT SEEM RIGHT TO YOU? YEAH. IN OUR PRESENTATIONS, UM, WE ASSERT THAT BASE REVENUES MAKE UP ABOUT HALF, BUT THAT IS BASED ON ALL THE SYSTEM SYSTEM-WIDE. SO WE LOOKED AT SYSTEM WIDE BASED REVENUE AND SYSTEM WIDE PASS THROUGHS, AND I THINK THAT'S A 52 48 SPLIT OR SOMETHING LIKE THAT. AND I JUST WONDERED HOW THAT APPLIED TO THE AVERAGE HOUSEHOLD, YOU KNOW, BUT, UH, I, I HAVEN'T, WELL, WE CAN TRY TO FIGURE THAT OUT. THANKS. BUT, BUT CERTAINLY THE DATA IS IN THE COST OF SERVICE TO CALCULATE IT. RIGHT. OKAY. ANYTHING MORE ON AMB? WELL, I DIDN'T ANSWER B YET. UM, BUT THE PART B WAS, UM, IF AUSTIN ENERGY HAD DONE ANY ANALYSES OF ALTERNATIVE RATE TIERS AND THE ANSWER'S, NO. AND WITH RESPECT TO SUBPART C UM, AUTHOR, ENERGY'S NOT, UM, CREATED ANY SPREADSHEET OR EXCEL WORKSHEET, UM, [00:40:01] TO, TO BE USED TO EVALUATE BILL AND PACKS. UM, I'M NOT EVEN CERTAIN HOW THEY WOULD GO ABOUT DOING THAT, FRANKLY. UM, WELL, UH, UH, I GUESS, YOU KNOW, IT'S SORT OF LIKE DOING A PROOF OF REVENUES, YOU KNOW, BUT, UH, MICROPHONE. YEAH. I GUESS MY THOUGHT WAS THAT IF ONE WERE TO PROPOSE AN ALTERNATIVE TIERED RATE STRUCTURE AND GIVEN WHAT WE'VE GOT, WHICH IS A HUGE COST OF SERVICE STUDY THAT, THAT, THAT THAT'S ATTACHED TO THAT, THAT THOSE SCHEDULES, UH, BILL IMPACTS WERE ATTACHED TO THAT. UM, WELL, I, IT JUST SEEMS DIFFICULT, UH, WITHOUT HAVING THAT, IT WOULD BE EASIER IF YOU HAD A SEPARATE SPREADSHEET THAT WAS JUST A SIMPLER, YOU KNOW, A SIMPLE, UH, UH, YOU KNOW, HERE, HERE ARE OUR RATES, HERE ARE, YOU KNOW, UH, KWH IS BY, YOU KNOW, INCREMENTS OF USAGE. AND, UH, THAT ONE COULD USE THAT TO TRY TO EVALUATE AS OPPOSED TO USING THE MODEL, WHICH FOR ONE THING, I MEAN, ASSUMING EVEN THAT I, FOR INSTANCE, I CAN FIGURE OUT HOW TO DO IT IN THE MODEL. UH, IT MEANS LIKE YOU MENTIONED, IT'S THE, YOU KNOW, HAVE TO SAVE A DIFFERENT VERSION OF THE MODEL EACH TIME I DO IT. AND, UH, SO I GUESS THAT'S, I WAS, THAT'S THE REASON I ASKED THAT QUESTION. I, I WAS KIND OF HOPING MAYBE, UH, THAT THAT'S, YOU KNOW, YOU HAD ONE LAYING AROUND THAT YOU'D USED YOURSELF, UH, TO TRY TO, YOU KNOW, SEE WHAT DIFFERENT RESULTS MIGHT COME FROM DIFFERENT, UH, DIFFERENT TIERS OR DIFFERENT, UH, UH, RATES FOR THE TIERS. BUT ANYWAY, I MEAN, I DON'T KNOW IF IT'S ANY CONSOLATION, BUT WE DO. I MEAN, WE HAVE ALL THE INFORMATION THAT YOU WOULD NEED, IF YOU, FOR EXAMPLE, WERE TO FILE A REQUEST FOR INFORMATION, WITH A DIFFERENT BREAK POINT OR SOMETHING LIKE THAT, WE CAN PROBABLY GET THAT INFORMATION TO YOU. OKAY. THAT'S GOOD TO KNOW. OKAY. YEAH. WE JUST DON'T HAVE SORT OF THE GENERIC LAYING AROUND AS YOU PUT IT. UM, OKAY. UM, THEN MOVING ON TO SIX, UM, ASKING ABOUT THE TREATMENT OF TRANSPORTATION COSTS AND REVENUES, UM, UH, BRIAN. SURE. SO I GUESS MAYBE YOU PROBABLY ALREADY KNOW THIS SOMEWHAT, BUT JUST TO GET A KIND OF SENSE OF THE LAY OF THE LAND, UH, AND MAPPING IT TO FAMILIAR TERRITORY IN TERMS OF HOW, HOW IT'S DONE WITH TD USE OR WITH VERTICAL OTHER VERTICAL UTILITIES IN TEXAS THAT ARE REGULATED BY THE PUC, UM, WHOLESALE T COST IS IT'S JUST LIKE FOR ANY OTHER TSP IN THAT THE DOLLARS ARE ASSIGNED TO THE TRANSMISSION FUNCTION AND, UH, BY VIRTUE OF FUNCTIONALIZING THOSE COSTS OF TRANSMISSION THEY'RE OUT OF THE BASE, YOU KNOW, THE, THE, UH, RETAIL BASE RATE REVENUE REQUIREMENT, AND THERE'S NO NEED TO FIDDLE WITH THEM AFTER THAT. RIGHT. UM, SO THAT'S THE WHOLESALE TRANSMISSION COST PIECE FOR AUSTIN ENERGY AS A TSP. THEN I BELIEVE ALSO IN THE TRANSMISSION FUNCTION, WE SHOW RETAIL TRANSMISSION EXPENSES, RIGHT? SO OUR SHARE OF THE COSTS OF TRANSMISSION GRID SERVICE THAT AUSTIN ENERGY HAS TO ACQUIRE TO SERVE ITS NATIVE LOAD, RIGHT? SO PAYING EVERYBODY ELSE FOR TRANSMISSION SERVICE. SO THE ENCORES AND THE CENTER POINTS AND ALL THAT, AS YOU PROBABLY KNOW, THAT IS NOT RECOVERED IN AUSTIN ENERGY'S BASE RATES. THAT'S AN IRREGULATORY CHARGED PASS THROUGH COST RECOVERY MECHANISM. SO THIS WOULD BE THE EQUIVALENT OF LIKE A TDU AND ERCOT THAT RECOVERS ALL OF THEIR RETAIL TRANSMISSION EXPENSES THROUGH THE TCRF. RIGHT. THAT'S KIND OF WHAT WE'RE DOING. THERE'S ALSO SOME OTHER STUFF IN THERE. I THINK GRANT MENTIONED OR ADMINISTRATIVE FEES. THERE'S SOME, SOME STUFF IN THERE AS WELL, AND THE REGULAR AND THE DETERMINATION OF THE REGULATORY CHARGE, BUT THAT'S WHERE RETAIL TRANSMISSION EXPENSES GO. RIGHT. SO THE ONLY PIECE LEFT IS WHAT ABOUT, UH, REVENUE CREDITS? SO THERE'S, IF YOU LOOK AT SCHEDULE WORK PAPER, SORRY, WORK PAPER, RATHER E 4.2, THAT SHOWS YOU WHERE THE, UH, LET'S SEE. NO, THAT'S NOT THE RIGHT ONE [00:45:20] PAPER, SORRY. A WORK PAPER E 5.1 SO THERE, YOU CAN SEE, UH, TOWER USAGE FEE REVENUES, AND, UM, LOOKS LIKE CELL ARE 37. IT'S ABOUT 820,000 TOWER APPLICATION FEES, $30,000. SO THIS IS, YOU KNOW, MISCELLANEOUS STUFF FOR YOU. SO THE TOWERS INFRASTRUCTURE, MISCELLANEOUS REVENUE TRANSMISSION IS ABOUT 600,000 THAT'S ON CELL R 62, AND THIS IS ALL IN WORK PAPER, EFI 0.1. SO THAT'S WHERE WE'RE DETERMINING THE, YOU KNOW, MISCELLANEOUS REVENUE CREDITS, BUT THAT'S CREDITS TO WHOLESALE T COSTS. NONE OF THAT AFFECTS THE, UH, RETAIL BASE REVENUE REQUIREMENT. YOU MENTIONED THE, UH, YOU KNOW, A NORMAL PDU OR CO TDU AT THE COMMISSION. AND MY RECOLLECTION IS THAT, UH, EVEN THOUGH THE TRANSMISSION COSTS ARE DEALT WITH SEPARATELY, THE, IN DETERMINING THE REVENUE REQUIREMENTS FOR THE TDU, THERE IS BASICALLY A, AN ADJUSTMENT OR REVENUE ADJUSTMENT. THAT'S THE, BASICALLY THE DIFFERENCE BETWEEN, UH, WHAT THEY HAD TO PAY, WHAT THE UTILITY HAD TO PAY, UH, FOR ITS OWN USE OF TRANSMISSION BUYING, I GUESS, ESSENTIALLY TRANSMISSION FROM ERCOT VERSUS THE, YOU KNOW, UH, AMOUNT OF REVENUE IT RECOVERED, UH, FROM THE ERCOT, YOU KNOW, AND AT THAT ADJUSTMENT BECOMES AN ADJUSTMENT TO REVENUE REQUIREMENT IN BASE RATES, YOU KNOW, ON I'M SAYING, OR IS THAT SOUND FAMILIAR? I DON'T THINK THAT'S CORRECT. I, YOU KNOW, THE TD USE ARE A LITTLE DIFFERENT AND THAT THEY ARE ACQUIRED BY THE COMMISSION TO COME IN AT THE SAME TIME, BOTH FOR THEIR WHOLESALE T COSTS AND THEIR RETAIL RATES, RETAIL DELIVERY RATES, AND, UH, TO BE SET SO THAT THE TOTAL COMPANY REVENUE REQUIREMENT IS A CONSTANT, UM, IN THAT PROCESS, I DON'T RECALL EVER HAVING PARTICIPATED IN A CASE WHERE THE TD USE ACTUAL WHOLESALE TRANSMISSION REVENUES WERE USED IN ANY WAY, UH, IN, UH, IN THE DETERMINATION OF THE WHOLESALE T COST OR RETAIL DELIVERY REVENUE REQUIREMENT. NOW IT CAN GET CONFUSING BECAUSE I KNOW CENTER POINT AND ENCORE TREATED DIFFERENTLY. AND ACTUALLY, YOU MAY REMEMBER I TOOK ISSUE WITH HOW CENTERPOINT TREATS IT AND 4, 9 41. UM, SO IT, IT CAN GET CONFUSING, BUT I DON'T THINK IT'S CORRECT THAT WHOLESALE, ACTUAL WHOLESALE TRANSMISSION REVENUES ARE USED IN ANY WAY, AT LEAST NOT IN ANY TDU RATE CASE THAT I'VE EVER PARTICIPATED IN. WELL, OKAY. I, I THINK THEY ARE, THEY HAVE BEEN, BUT LET ME JUST ASK THIS QUESTION THEN IF SUPPOSING THE AMOUNT, UH, THAT LET'S SAY, UH, AUSTIN ENERGY TAKES IN MORE REVENUE, WHOLESALE REVENUE THAN IT PAYS IN RETAIL FOR EAT FOR RETAIL, UH, UH, TRANSMISSION COSTS, UH, WHERE IS THAT REVENUE DEALT WITH OR THAT DIFFERENT DEALT WITH, IS IT DEALT WITH IN A PASS THROUGH RATE OR IS IT, UH, WELL, I WOULD SAY, YOU KNOW, THAT THE PUC HAS JURISDICTION OVER AUSTIN, ENERGY'S WHOLESALE T COSTS, RIGHT? AND AUSTIN ENERGY FILES AND EARNINGS MONITORING REPORT WITH THE COMMISSION EVERY YEAR. AND DURING EVERY YEAR, SINCE WE [00:50:01] LAST HAD A FULL T COSTS, SHANIQUA'S 2006, THE COMMISSION HAS REVIEWED OUR EARNINGS MONITORING REPORT EVERY YEAR AND HAS NOT FOUND THAT AUSTIN ENERGY IS OVER EARNING AND HAS NOT CALLED AUSTIN ENERGY IN, FOR A FULL T COSTS. BUT THE DETERMINATION AS TO WHETHER OR NOT THERE'S ANY WHOLESALE TRANSMISSION THAT ARE ABOVE THE LEVEL OF WHOLESALE TRANSMISSION COSTS THAT AUSTIN ENERGY'S INCURRING, THAT'S A DETERMINATION FOR THE COMMISSION TO MAKE. RIGHT. SO, AND THAT'S, THAT'S A DETERMINATION THAT WOULD BE THE END RESULT OF A FULL T COST PROCEEDING. RIGHT? I'M AN OVERDOING HERE IS WE'RE JUST SEGREGATING OUT WHOLESALE COSTS AND WE'RE SEGREGATING OUT WHOLESALE REVENUES. AND WE'RE SAYING THOSE ARE NOT RELEVANT TO SETTING RETAIL RATES IN THIS CASE. OKAY. SO ARE, IS THERE ANOTHER PASS-THROUGH THAT, UH, WOULD RECOGNIZE THIS, THE REVENUES AND THE COSTS, OR IS THERE A PASTOR RATE? YEAH. SO UNDER THE REGULATORY CHARGE, THERE'S A TRUE UP, I'M GOING TO CORRECT ME IF I'M WRONG. SO IN TERMS OF THE RETAIL TRANSMISSION EXPENSES, IT'S DOLLAR FOR DOLLAR, AND THERE'S A RECONCILIATION, THERE'S A TRUE OP OF, YOU KNOW, BILLING UNITS AND COSTS. SO WHAT ACTUALLY HAPPENED SO THAT, YOU KNOW, THAT THAT IS EXACTLY LIKE THE TCRF IN ARCATA. I DON'T KNOW IF THAT IS WHAT YOU'RE ASKING ABOUT. SO THE RETAIL SIDE IS, IS TRUED UP ON AN ONGOING BASIS ANNUALLY. OKAY. ALL RIGHT. WELL, I SEE PROBABLY SOMETHING I NEED TO THINK ABOUT SOME MORE, SO I CAN'T REALLY ASK ANY MORE QUESTIONS ON IT. SO I THINK WE CAN GO TO SEVEN OTHER THAN, WELL, I GUESS THERE IS A SUB-PART C HERE IS RIGHT. OH, I'M SORRY. OKAY. YEAH. LET ME GO HELP YOU WITH THE DOCKET NUMBERS HERE. SO I BELIEVE THE MATRIX DOCKET THAT WE USED TO CALCULATE THE LEVEL OF RETAIL TRANSMISSION EXPENSE THAT'S SHOWN IN THIS MODEL IS DOCKET NUMBER 5 1 6 1 2. SO THAT WOULD BE BASED ON HER COT LOAD IN 2020. AND THE MOST RECENT ONES IS SUBPART C DOCKET NUMBER 5, 2 9, 8 9 WAS RECENTLY APPROVED BY THE COMMISSION. I HAVE 2 8, 9, 9. IS IT 8, 909? I BELIEVE IT'S 9, 8, 9. OKAY. UM, SO THAT'S, UH, OR CAUGHT LOAD DURING CALENDAR YEAR, 2021. OKAY. ALL RIGHT. QUESTION SEVEN. ASK ABOUT NON NUCLEAR DECOMMISSIONING FUNDING, UM, GRANT. YEAH. UM, SO THERE IS, UM, WELL, THERE'S TWO RELEVANT, UM, DOCUMENTS THAT MIGHT BE HELPFUL TO YOU IN THAT REGARD. UH, ONE I'LL POINT YOU TO AUSTIN ENERGY'S FINANCIAL POLICY NUMBER 21, WHICH HAS A REQUIREMENT THAT AUSTIN ENERGY, UM, BEGIN TO SET ASIDE FUNDS FOR A MINIMUM OF FOUR YEARS PRIOR TO THE EXPECTED PLANT CLOSURE DATE. UM, AND THEN IN TERMS OF QUANTIFYING THE, THE, THE MAGNITUDE OF THE DOLLARS ASSOCIATED WITH DECOMMISSIONING, THE VARIOUS PLANTS, UM, THERE WAS A STUDY CONDUCTED, UM, IN 2015, UM, THAT THAT DOES CONTAIN, UH, YOU KNOW, UH, QUANTIFICATION OF THAT OBLIGATION. UM, AND THAT IS SOMETHING THAT WE CAN MAKE AVAILABLE. YES. THAT WOULD BE HELPFUL. YEAH. LET US PULL THOSE AND WE'LL GET THOSE TO YOU. ONE MOMENT. I, I JUST LIKE TO ADD, ADD TO THAT, THAT THOSE DECOMMISSIONING COSTS WERE AN ISSUE IN THE LAST RIGHT CASE. UM, AND, UH, CONSEQUENTLY, AFTER THE LAST RIGHT CASE, WHICH WAS SETTLED, UM, AUSTIN ENERGY HAS, UM, FOUR FULL YEARS, UM, CONTRIBUTED $8 MILLION. SO WHAT, UM, WHAT IS INCLUDED IN THIS COST OF SERVICE IS A HISTORICAL COST GOING BACK THREE, FIVE YEARS, WHATEVER THE, SINCE THE 2017 CASE BECAME EFFECTIVE. WELL, DID YOU CHANGE THE, UH, THE AMOUNT AS A RESULT OF THE CASE, OR IF MEMORY SERVES WHAT WE REQUESTED WAS, UH, MORE THAN THE $8 MILLION, ALTHOUGH [00:55:01] IT WAS SETTLED, UM, UH, AT SOMETHING LESS, UH, LET ME REPHRASE THAT. THE REDUCTION TO BASE REVENUES WAS MUCH GREATER THAN, UH, THE REDUCTION AUSTIN ENERGY HAD REQUESTED. AND SO WE FOUND AN AMOUNT THAT WE COULD AFFORD. OKAY. ALL RIGHT. QUESTION EIGHT HAS THREE PARTS, A, B, AND C AND UNQUOTE ON A SUB PARTS, A AND C. AND THESE DEAL WITH FAYETTE AND STP EXPENSE INFORMATION. UM, WE'RE GOING TO NEED TO GET BACK ON THAT. I'M CONCERNED THAT THERE'S A POSSIBILITY THAT SOME OF THAT INFORMATION MAY BE COMPETITIVE. AND I JUST WANT TO CONFIRM THAT BEFORE WE RESPOND TO IT, SUBPART B HOWEVER, ADDRESSES, UM, LABOR EXPENSES AND, UM, ALL I CAN GONZALEZ, UM, BELIEVE IS CAN, SO WE HAVE, WE HAVE THAT INFORMATION. WE CAN, WE CAN GIVE YOU FPP AND STP LABOR BY FARC. OKAY. AND IT SHOULDN'T TAKE LONG FOR ME TO GET CONFIRMATION ON PARTS A AND C JUST WASN'T ABLE TO DO THAT YESTERDAY. CLARENCE AND THE SAME IS TRUE ON, UH, I THINK OF MELBOURNE COMING UP, BUT WE'LL GET TO IT. UM, SO QUESTION NINE, DEALING WITH GAS GENERATION PLANTS, UH, BY THE WAY, I'M ON EIGHT, UH, SEE, YEAH. YOUR ANNUAL CAPACITY FACTOR FOR EACH POWER PLANT. I MEAN, I DIDN'T KNOW IF THAT WAS CONSIDERED CONFIDENTIAL, BUT I THOUGHT I SAW SOMEWHERE ON AES WEBSITE WHERE THERE WAS A REPORT THAT SHOWED THE CAPACITY FACTORS FOR THE UNITS. BUT, UH, AND MAYBE I'LL JUST ASK THIS CLARIFYING QUESTION. ARE YOU ASKING FOR NAMEPLATE CAPACITY OR ARE YOU ASKING FOR SOMETHING DIFFERENT? NO, JUST NAMEPLATE. OKAY. I MEAN, NOT THE, I MEAN, THE CAPACITY FACTOR THOUGH, THE, YOU KNOW, THE ANNUAL, UH, ENERGY USE OR ENERGY SUPPLY, YOU KNOW, VERSUS THE, A NAMEPLATE NAMEPLATE CAPACITY NAMEPLATE WOULD NOT, THAT'S PROBABLY WHAT'S ON THE WEBSITE, IF THERE'S SOMETHING, UH, ANNUAL COULD BE. AND THAT'S WHAT I WANT TO CONFIRM. YEAH. I MEAN, THERE IS ON THE WEBSITE, UH, SOME REPORTS THAT ARE, UH, UH, REPORTS FOR POWER PLANTS AND SO FORTH. HOWEVER, THEY DON'T LOOK LIKE THEY'RE THE MOST RECENT DATES. SO THAT'S ONE OF THE REASONS I ASKED THE QUESTION. I THOUGHT MAYBE YOU MIGHT HAVE AT LEAST SOMETHING THAT'S MOST CURRENT. SO, ALL RIGHT. AGAIN, LET ME JUST GO BACK AND CHECK IT. SHOULDN'T TAKE VERY LONG AND WE'LL SEE WHAT'S ON THE WEBSITE AND THEN WE'LL CONFIRM, UM, IF THERE'S NO CONFIDENTIALITY CONCERNS, WE'LL, WE'LL CERTAINLY PROVIDE IT, UH, ABOUT THE ANC. UM, ALL RIGHT. NOW, MOVING ON TO NINE, UH, GRANT. YEAH. SO QUESTION NINE IS ASKING FOR THE PLANT BALANCES FOR DIFFERENT GENERATION UNITS. AND SO LET ME START BY THE EASY PART OF THIS. UM, YOU CAN SEE IN THE RATE FILING PACKAGE ITSELF, THE TOTAL ORIGINAL COST GROSS PLANT, UH, BY FARC ACCOUNT AND SCHEDULE B AS IN BOY, ONE FURTHER, YOU CAN SEE THE ACCUMULATED DEPRECIATION BY BURKE ACCOUNT FOR ALL GENERATION, UM, AND SCHEDULE B FIVE. SO IF YOU SUBTRACT ONE FOR THE OTHER, YOU'LL GET THAT PLANT BALANCE. I HAVE NOT SEEN ANYTHING THAT BREAKS THAT OUT BY UNIT. SO THE INFORMATION THAT I, THAT I'M SEEING AND THAT IS AVAILABLE IN THE RATE FILING PACKAGE IS AT THAT LEVEL AT THE FORK ACCOUNT LEVEL, NOT BY GENERATION STATION OR, OR UNIT, UM, HM. IN TERMS OF THE GAS GENERATION, THAT'S IN THE COST OF SERVICE. AS I RECALL THAT THERE WERE S THERE IS GAS GENERATION COSTS THAT HAS BEEN REMOVED FROM THE STUDY BECAUSE IT'S, UH, RETIRED, UH, CORRECT, UH, RETIRED THIS YEAR, LAST YEAR, TH THERE WERE SOME DECKER, UH, UNIT, UH, OPERATING EXPENSES, UH, THAT, THAT WERE REMOVED, UH, FROM, FROM THE ANALYSIS. THAT'S THAT'S CORRECT. AND DO YOU KNOW WHAT KIND OF UNITS ARE LEFT AT DECKER THAT, UH, MERCEDES [01:00:05] YEAH, THE, THE REMAINING UNITS AT DECKER OR COMBUSTION TURBINES. OKAY. OKAY. ANYTHING MORE ON NINE? NO. OKAY. UM, ONE MOMENT. ALRIGHT. UM, QUESTIONS, UH, TENANT DEALING WITH UNCOLLECTABLE EXPENSE. UM, OKAY. THANKS RUSTY. SO THE QUESTION IS PROVIDE THE ANNUAL UNCOLLECTABLE EXPENSE FOR EACH OF THE THREE YEARS PRIOR TO 2020. UH, THOSE AMOUNTS COMMENCING WITH 2017 ARE $4,862,275 2018, $4,504,989 2019 $44,326,336. AND FOR WHAT IT'S WORTH 2020 $4,893,724. SO THE FIRST YEAR YOU GAVE ME WAS, UH, 2017. OKAY. OKAY. HI THERE FOR PART B ELAINE, THE SILCA VICE PRESIDENT OF CUSTOMER ACCOUNT MANAGEMENT. UM, WE TRACK BANKRUPTCIES BY RESIDENTIAL AND NON-RESIDENT RESIDENTIAL. SO WE DON'T HAVE DATA AVAILABLE TO THAT. THE REQUESTED LEVEL OF SPECIFY THE CITY. OKAY. I GUESS, I GUESS THAT'S ALL ON ALL COLLECTIBLE. ALL RIGHT. THEN WE'LL MOVE ON TO 11, UH, ADDRESSING METER READING. UM, HOW ARE WE GOING TO APPROACH THOSE? WELL, I BELIEVE I CAN ADDRESS A QUESTION. A PLEASE EXPLAIN HOW METER READING COSTS ARE DIVIDED BETWEEN WATER WASTEWATER, UTILITY AND AUSTIN ENERGY METER READING COSTS ARE ALLOCATED TO AUSTIN WATER BASED ON THE NUMBER OF MANUAL METER READS. UM, AND, UH, ABOUT 99.4, 4% GOES TO AUSTIN WATER AND WASTEWATER. OKAY. SO BASICALLY VERY LITTLE METER READING COSTS, UH, IS ASSIGNED TO, UH, AUSTIN ENERGY. THAT'S CORRECT. OKAY. UH, QUESTION BE ASKED FOR AN ANALYSIS OF THE SAVINGS AND METER READING EXPENSE ASSOCIATED WITH THE USE OF DIGITAL SMART METERS. UM, AUSTIN ENERGY DOES NOT HAVE ANY STUDY OR SUCH ANALYSIS I GATHER, UH, IS IT SINCE, UH, YOU KNOW, VERY LITTLE OF THE MA THE METER READING EXPENSES ALLOCATED TO AUSTIN ENERGY THAT, UH, THAT'S DUE TO THE FACT THAT, UH, UH, YOU HAVE DIGITAL METERS, RIGHT. THAT CAN BE, UH, NOW I'M NOT SURE EXACTLY HOW THAT, HOW THEY READ, READ THOSE IS THAT GO IN BY RADIO TO, UH, OR BY CELL OR CELL PHONE OR SOMETHING TO, UH, UM, YOU KNOW, UH, ONE LOCATION OR IS THAT JUST BY, UH, YOU KNOW, UH, AUSTIN ENERGY PERSONNEL DRIVING DOWN THE STREET AND PICKING UP THE DATA? YOU KNOW WHAT I'M SAYING? IT'S, IT'S FULLY, IT'S FULL AMI, SO IT, UH, THE READS COME OVER A NETWORK INTO OUR SYSTEM. OKAY. OKAY. UH, AND THEN ON C YEAH. UM, WE'RE GOING TO NEED TO GET BACK TO YOU ON, SEE OKAY. UH, ALL RIGHT. THEN ON, UH, 12, UH, DEALING WITH ELECTRIC METERS PART A, UH, SO OPT OUT OF OUR AMI PROGRAM IS ONLY AVAILABLE TO RESIDENTIAL CUSTOMERS. UM, THE PERCENTAGE OF RESIDENTIAL CUSTOMERS THAT HAVE OPTED OUT. UM, SO THEY HAVE A NON AMI METER IS LESS THAN ONE [01:05:01] 10TH OF 1%. IT'S LIKE 0.09%. OKAY. AND THOSE ARE THE ONLY ELECTROMECHANICAL METERS. AND, UM, OKAY. WE'LL NEED TO, BACK TO YOU CLEARANCE ON PART B THAT, UM, AND I'M PART C UH, I BELIEVE THAT THE THAT'S THE SAME INFORMATION THAT'S BEING REQUESTED IN, UM, RCA ONE DASH SIX, AND THOSE RESPONSES ARE DUE ON MONDAY. AND SO WE'LL, UM, ANSWER IT THEN IF FOR SOME REASON YOU FEEL LIKE, UM, SOMETHING DIFFERENT IS BEING ASKED IN THIS ONE, ONCE YOU GET OUR RESPONSE, LET US KNOW, AND WE CAN DEAL WITH THAT. I, I THINK I JUST REPEATED THE REQUEST PROBABLY CAUSE I WAS UNDER THE SAME TOPIC, BUT, UH, AND LIKE I SAID, IF YOU GET THE RESPONSE OR YOU DO LOOK AT IT CLOSELY AND, AND FEEL LIKE WE'RE, YOU'RE ASKING FOR SOMETHING DIFFERENT, JUST LET US KNOW AND WE'LL FOLLOW UP. OKAY. UM, UH, ON MISCELLANEOUS REVENUES, UH, OFTEN ENERGY DOESN'T MAINTAIN, UM, THIS INFORMATION BY CLASS. OKAY. UH, IS THE, YOU KNOW, I LIST HERE AS A SEPARATE ITEM CHARGED FOR REACTIVATION OF SERVICE AFTER DISCONNECTION. IS THAT PART OF THE SERVICE INITIATION FEE? I DIDN'T KNOW WHETHER I SHOULD BREAK THAT OUT AS A SEPARATE ITEM OR NOT, UH, SEPARATE, SEPARATE. OKAY. UH, AND EVEN IF YOU DON'T HAVE IT, MY CLASS, IS IT, UH, IS THERE A SCHEDULE WHERE I COULD SEE THESE ITEMS IN THE REVENUES FOR THEM, OR JUST, EVEN IF IT'S NOT BY CLASS, LOOK FORWARD HERE. IT'S LIKE WORK PAPER E DASH 5.1, ITEMIZES THOSE, UH, THE TOTAL AMOUNTS. OKAY. UH, ALL RIGHT. THEN QUESTION 14, DEALING WITH 3, 1, 1 EXPENSE, UM, THAT HAS TWO PORTIONS. UM, SO PART A BRIAN. SURE. SO WORK PAPER, E DASH 4.2 SHOWS THE, UH, COMPONENTS OF THE AMOUNT THAT'S GOING IN TO BASE RATES. BEAR WITH ME HERE. I'M GOING TO GO THERE. SO THIS WORK PAPER CAN BE A LITTLE BIT CONFUSING. UM, WHAT THIS WORK PAPER IS SHOWING IS HOW NON ELECTRIC EXPENSES ARE DETERMINED AND REMOVED. BUT IN ADDITION TO NON-ELECTRIC THREE, ONE, ONE CALL CENTER STUFF ALSO GETS PULLED IN HERE. SO THE AMOUNTS THAT ARE BEING USED HERE TO BACK THIS BACK, 3, 1, 1 OUT, IF YOU REVERSED THE SIGN, YOU CAN CONSIDER THOSE TO BE THE, UM, THE AMOUNTS THAT ARE GOING TO THE REVENUE REQUIREMENTS. SO IT SHOWS A TOTAL OF $2.8 MILLION, AND THERE'S A BREAKOUT OF VARIOUS ACCOUNTS UNDER AN HOUR. AND YOU'RE JUST IN THAT BREAKOUT CLEARANCE. YES. OKAY. SO, UM, 3, 1, 1 REIMBURSEMENT SERVICES. SO THIS, I GUESS WOULD BE AMOUNTS WERE THAT THE THREE, ONE, ONE CALL CENTER RECEIVES, UH, AS, AS REVENUE OFFSETS, THAT'S $9,066,618. AND THEN THERE'S THREE, ONE, ONE CALL CENTER OPERATIONS, 7 MILLION, $210,591. THAT'S ON THAT SCHEDULE. RIGHT? I SHOULD NOTE THAT THAT 9 MILLION, THAT WOULD BE AN ALL RIGHT. SO THAT'S, UH, THAT'S THE OPPOSITE SIGN AS THE, UH, YOU KNOW, THE EXPENSE AMOUNTS THAT ARE GOING IN. AND THE NEXT ACCOUNT IS 3 1, 1 TECHNOLOGY AND SUPPORT OPERATIONS. THAT'S 2 MILLION, $200,000, SORRY, 2 MILLION, $200,710, 3, 1, 1 [01:10:01] CLIENT RELATIONS, OUTREACH AND CRM SYSTEMS, $1,871,414. AND FINALLY, 3, 1, 1 CITY-WIDE INFO CENTER, $589,289. AND A, THE, THE TOTAL AMOUNT OF ALL THOSE IS 10 MILLION, 800, $5,385. SO THAT WOULD BE, HOW MUCH WOULD IT COST THAT'S GOING INTO THE REVENUE REQUIREMENT? WHAT WAS THE NUMBER AGAIN YOU GAVE FOR THE TOTAL 2,805,385? UM, IT DOESN'T SEEM LIKE, UH, UH, MEMPHIS, WE MISSING SOMETHING. MAYBE I NEED TO LOOK AT THAT WORK PAPER, BUT, UH, IT, UH, THOSE NUMBERS DON'T ADD UP TO, TO 2.8 MILLION, RIGHT. SO THE FIRST ONE IS, IS IT, YOU KNOW, LIKE I SAID, OPPOSITE SIGN VALUE. SO THE EXPENSE SIDE IS 11 MILLION, $872,003. AND THEN THE REVENUE SIDE IS THAT FIRST VALUE I GAVE YOU 9 MILLION. OKAY. YEAH. ALRIGHT. AND YOU SAID THIS WAS G UH, EXCUSE ME, E 4.2. IS THAT WORK PAPER 4.2? OR IS THAT JUST THE SCHEDULE? YES, SIR. WORK PAPER E 4.2. OKAY. CAN YOU HEAR ME? YEAH. YES. YEAH. AND THE, FOR THE SECOND PART, WE DO TRACK THE DURATION OF EVERY SINGLE CALL THAT WE TAKE AT THREE ONE, ONE. AND, UH, THAT IS, UH, THAT TIME. UH, THAT'S WHAT WE USE TO, UM, TO SEGMENT, UH, THE BUDGET AND ALLOCATED BACK TO EACH CITY OF BOSTON DEPARTMENT. OKAY. UH, SO IT'S A TIME DURATION OF CALLS. AND IS IT A TIME DURATION OF CALLS BY PARTICULAR TYPES OF ISSUES? I ASSUME YOU HAVE TO KNOW THE ISSUE BEFORE, YOU KNOW, WHAT DEPARTMENT, SO W WE TRACK IT BASED ON THE DEPARTMENT, BUT YOU'RE RIGHT. THERE COULD BE A DIFFERENT REASONS WHY THEY CALL FOR A SPECIFIC DEPARTMENT AND YOU'LL GET A LIST OF, UM, THE, THAT BUDGET ALLOCATION BACK TO EACH DEPARTMENT. OKAY. SO THERE'S SOME YOU'RE GETTING DOES TO US LATER ON THIS. YEAH. OKAY. OKAY. SO, UH, I GUESS WE CAN GO TO THE NEXT QUESTION. ALL RIGHT. THE NEXT QUESTION DEALS WITH, UH, ECONOMIC DEVELOPMENT PROGRAM AND IT'S, UM, ASKING FOR A NUMBER OF THINGS. THE FIRST PORTION OF THAT QUESTION ASKS FOR, UM, DETAILS REGARDING THE PURPOSE OF THE PROGRAM. UM, NEED TO FOLLOW UP WITH YOU ON THAT. UM, THE OTHER PIECES OF THAT QUESTION, UH, GRANT YOU WANT TO SPEAK TO IT? ABSOLUTELY. UM, SO THE, THE SPECIFIC, UM, AMOUNTS, UH, FOR ECONOMIC DEVELOPMENT, UM, WHICH ARE CAPTURED IN FOLK ACCOUNT 9 1, 1 CAN BE SHOWN, OR IT CAN BE SEEN ON SCHEDULE . AND THEN IF YOU THEN LOOK AT SCHEDULE G SIX, IT'LL SHOW YOU HOW THAT IS BEING ALLOCATED TO CUSTOMER CLASSES. AND IT'S BEING ALLOCATED BASED OFF A KEY ACCOUNTS ALLOCATED THAT'S DEVELOPED IN THE RIGHT AND PACKAGE. SO THE KEY ACCOUNT ALLOCATOR IS USED FOR ECONOMIC DEVELOPMENT. THAT'S RIGHT. OKAY. OKAY. I GUESS WE HAVE, I THINK THAT ANSWERS THE QUESTION, I GUESS, I GUESS. UM, UH, CAUSE I RECALL SEEING THE KEY ACCOUNT ALLOCATION FACTORS IN THE STUDY. SO THEN I, I HAD THOUGHT THOSE KEY ACCOUNT ALLOCATIONS CAME FROM THE AMOUNT OF TIME THAT THE PERSONNEL WHO HANDLE KEY ACCOUNTS SPEND ON VARIOUS CUSTOMER CLASSES. IS THAT CORRECT? OR, YEAH, THERE'S A, THERE'S A WORK PAPER IN THE RE-POTTING PACKAGE ITSELF THAT, THAT SHOWS THE PROPORTION OF KEY ACCOUNT STAFF, UM, EFFORT, UM, ASSOCIATED WITH EACH OF THE VARIOUS CUSTOMER CLASSES THAT THEN LEADS TO THAT ALLOCATOR. OKAY. ALL RIGHT. [01:15:01] THEN LASTLY, UH, QUESTION 16 DEALING WITH CALL CENTER, UH, JERRY, MAYBE NOT HERE. YEAH. SO I CAN HELP YOU WITH THE FIRST PART OF THIS CLARENCE. UM, SO FIRST PART IS PLEASE IDENTIFY THE AMOUNT OF AES CALL CENTER COSTS AND THE SCHEDULES, WHICH CONTAIN THE COST. SO THE, THOSE AMOUNTS ARE CONTAINED IN FERC ACCOUNTS, 9 0 3 9 0 8 9 29, 21 AND NINE 30. WE HAVE BEEN WORKING NOW. IT'S NOT THE FULL AMOUNT THAT YOU SEE IN THIS WORK ACCOUNTS. IT'S A COMPONENT OF THE TOTAL THAT'S INCLUDED IN THOSE ACCOUNTS. AND WE ARE WORKING ON, WE HAVE KIND OF A SENSE OF, OF HOW THAT BREAKS OUT, BUT, UM, IT HASN'T SORT OF GONE THROUGH FULL QUALITY CONTROL. SO ONCE WE'RE DONE CLEANING THAT UP AND VETTING IT, WE'LL, WE'LL GIVE IT TO YOU. OKAY. AND THEN THE PART B YOU WILL GET A BREAKDOWN OF THE MAJOR CALL TYPES THAT WE HANDLE IT. THE UTILITY CONTEXT CENTER FOR ALL CITY OF BOSTON UTILITIES AT A HIGH LEVEL IS ABOUT A THIRD STAR STOP AND TRANSFER. UH, I KNOW THAT THERE IT IS, UM, JUST GENERAL BALANCE INFORMATION PAYMENTS. UM, AND, AND AGAIN, WE'LL PROVIDE A BREAKDOWN IN TERMS OF AVERAGE HANDLE TIME. UM, IT'S ABOUT SIX MINUTES TO EIGHT MINUTES PER CALL. OKAY. DEPENDING ON THE, ON THE ISSUE, UM, I MEAN, DO YOU KEEP THAT RECORDED BY TYPE OF CUSTOMER, YOU KNOW, CUSTOMER CLASS, OR EVEN IF IT'S LIKE RESIDENTIAL VERSUS NON-RESIDENTIAL OR RIGHT. RESIDENTIAL VERSUS COMMERCIAL? YEAH. WE HAVE THAT INFORMATION. WE CAN PROVIDE A BREAKDOWN. WE DIDN'T HAVE THE TIME JUST LAST NIGHT TO BREAK IT DOWN TO THAT DEGREE, BUT WE CAN ABSOLUTELY DO IT. OKAY. THANK YOU. APPRECIATE. ALRIGHT. I THINK THAT'S ALL OF THE QUESTIONS. UH, ALL RIGHT. UM, I SHOW IT'S 10 17. UH, HOW ABOUT WE TAKE A SHORT BREAK AND COME BACK AT, SAY 10 25. I KNOW THERE'S A COUPLE OF OTHERS THAT SENT IN QUESTIONS. WE CERTAINLY WANT TO GIVE THEM TIME. UM, SO WE'LL, WE'LL BREAK NOW FOR SEVEN MINUTES, 10 25. ALL RIGHT. WE'RE READY TO GET STARTED AGAIN. GLAD EVERYONE'S HAVING SUCH A NICE TIME OUT THERE. UH, BEFORE WE MOVE ON TO, UH, THE NEXT INDIVIDUAL TO ADD QUESTIONS, UM, THEY'RE WANTING TO DO ONE FOLLOW-UP ON QUESTION THREE, UH, GRANT. YEAH. I WAS ABLE TO CONFIRM, UH, MR. JOHNSON, THAT THE LABOR THAT I REFERRED TO EARLIER AS BEING IN, UM, OTHER POWER EXPENSES AND FOR 5, 5, 7, IT CONFIRMED THE VAST MAJORITY OF IT IS EMO FOLKS. SO IT'S ENERGY MARKET OPERATION FOLKS, UM, THAT ARE IN THERE. THEIR LABOR COSTS ARE WHAT'S SHOWING UP IN THAT, THAT FORK ACCOUNT IN THAT CATEGORY. ALL RIGHT. THANKS FOR THAT. UM, ALL RIGHT. EARLIER, A COUPLE OF INDIVIDUALS SAID THAT THEY HAD SOME QUESTIONS. UM, I THINK I HAVE A D ARE YOU OUT THERE? YOU HAD SOME QUESTIONS PLEASE FEEL FREE TO COME FORWARD. AND I'M TOLD THAT WHOEVER'S, UH, AT THE TABLE, PLEASE TURN ON THE MIC. AND WHEN YOU'RE NOT SPEAKING, TURN OFF THE MIC. IT'S, UH, I WANT TO ADD TO THAT TOO, THAT WE GOT A REPORT THAT PEOPLE WERE HAVING TROUBLE HEARING THE, UH, THE INDIVIDUAL ASKING THE QUESTION. SO IF YOU COULD BE CLOSE TO THE MIC AND ALL THAT, THAT'D BE MUCH APPRECIATED. SURE. THANKS. UM, YEAH, I THINK A LOT OF Y'ALL KNOW ME CABLE WHITE WITH PUBLIC CITIZENS, TEXAS OFFICE, AND ADRIAN SHELLEY WITH A PUBLIC SAYS, THANK YOU, ADRIAN SHELLER WITH PUBLIC CITIZENS, TEXAS OFFICE. YEAH. SO, UM, I GUESS OUR FIRST QUESTION, OR MAYBE MORE OF A CONCERN IS AROUND THE SCOPE OF THE PROCEEDING. UM, WE CERTAINLY DO HAVE AN INTEREST IN THE BASE RATES AND, UH, THE FIXED FEE AND, AND JUST THE REVENUE REQUIREMENTS IN GENERAL, BUT WE ALSO HAVE AN INTEREST IN OTHER ASPECTS OF AUSTIN, ENERGY RATES AND TARIFFS, AND THOSE SEEM TO BE EXCLUDED FROM THIS PROCEEDING AS THE PROCEDURAL GUIDELINES ARE CURRENTLY STATED AND THAT'S OF CONCERN TO US AND, UH, SPECIFICALLY [01:20:01] ANYTHING THAT, THAT MIGHT, UH, YOU KNOW, TOUCH ON NEW TARIFFS FOR THINGS LIKE BATTERY STORAGE OR ADJUSTMENTS OF THE ENERGY EFFICIENCY SERVICES FEE OR OTHER CUSTOMER BENEFIT CHARGES APPEAR TO BE ENTIRELY EXCLUDED. AND WE DON'T THINK THAT IT IS FAIR OR LOGICAL TO EXCLUDE ALL OF THOSE THINGS AND ASK US TO JUST LOOK AT BASE RATES BECAUSE THE CUSTOMER'S BILL, OF COURSE, ISN'T JUST EFFECTED BY BASE RATES AND THE FIXED FEE. IT'S ALSO EFFECTED BY ALL OF THOSE PROGRAMS AND TARIFFS. AND IT'S REALLY DIFFICULT TO JUDGE WHETHER OR NOT SOMETHING IS FAIR AND REASONABLE TO THE CUSTOMER. IF WE DON'T HAVE ANY ASSURANCE THAT THERE ARE OTHER, UH, FUNDING SOURCES AND, UH, TARIFFS AND PROGRAMS AVAILABLE THAT WOULD ADJUST THOSE OTHER TOPICS, INCLUDING ENERGY EFFICIENCY AND SOLAR, AND, YOU KNOW, ALL OF THE OTHER PROGRAMS THAT, THAT ARE FUNDED THROUGH THOSE FEES. SO, YEAH, THAT'S, THAT'S OUR FIRST ISSUE WE WANTED TO BRING UP. CAN ANYBODY SPEAK TO THAT? UH, I DON'T KNOW THAT THERE'S ANYTHING TO SPEAK TO, UM, MEAN IF YOU HAVE OTHER QUESTIONS, OUR INFORMATION THAT YOU NEED FROM MOTH ENERGY, WE CAN CERTAINLY ADDRESS THOSE. WELL, I GUESS MY QUESTION IS WHY IS THAT BEING DONE? IT WASN'T THAT WAY LAST TIME. SO WHY IS IT, WHY IS THIS BOUNDARY BEING DRAWN FOR, FOR THIS RATE CASE THAT DIDN'T EXIST FOR THE LAST RATE CASE? WELL, THERE'S, UM, THIS GREAT CASE IS, YOU KNOW, IS LIMITED TO, YOU KNOW, BASE RATE PORTION OF, OF CUSTOMERS OVERALL SERVICE AND THERE'S OTHER, UM, FORUMS AND OPPORTUNITIES AND TIMES WHEN THE OTHER PIECES OF THE BILL OR DRESS, FOR EXAMPLE, THE PSA AND CBC CHARGES ARE TAKEN UP AT A DIFFERENT TIME BY COUNCIL. UM, SO IT WASN'T AN ATTEMPT TO EXCLUDE THOSE. IT'S JUST EACH ONE HAS THEIR PLACE. AND AS YOU KNOW, UNDER ORDINANCE COUNSEL, UH, AES REQUIRED TO DO AN EXAMINATION OF THEIR BASE RATES AT LEAST, UM, EVERY FIVE YEARS. AND THAT'S WHAT BRINGS US TO THIS REVIEW BASE RATES. IF THERE'S SOMEONE ELSE FROM A THAT YOU DON'T WANT TO SPEAK TO THIS AS WELL, PLEASE DO, BUT YEAH, I UNDERSTAND THAT THAT'S THE REQUIREMENT, BUT I'M JUST POINTING OUT THAT LAST TIME AROUND, THERE WAS A WIDER SCOPE AND A NUMBER OF PARTIES BROUGHT UP ISSUES THAT WERE NOT JUST AROUND THE BASE RATES. AND I THINK THAT WAS USEFUL, YOU KNOW, TO HAVE THAT IN AN OPEN PROCEEDING THAT THAT WAS, YOU KNOW, STRUCTURED AS THIS IS. AND, UM, THOSE, THOSE OTHER PROCEEDINGS ARE NOT AS ROBUST AND DO NOT HAVE THE, THE SAME, UM, OPPORTUNITY FOR ENGAGEMENT THAT THIS ONE DOES. SO WE ARE ASKING FOR THIS TO BE STRUCTURED MORE LIKE IT WAS LAST TIME AND ALLOW FOR PARTIES TO, UM, YOU KNOW, ASK QUESTIONS AND PUT FORWARD PROPOSALS THAT ARE FOR THINGS THAT, THAT ARE OUTSIDE OF, OF WHAT IS CURRENTLY, UH, OUTLINED UNDERSTOOD. IS THERE ANOTHER VENUE IN WHICH WE SHOULD BRING THIS UP OR, OR LIKE, I'D LIKE TO KNOW WHERE WE SHOULD GO FORWARD. UH, YOU KNOW, AGAIN, THE PROCESS THAT'S BEING FOLLOWED IN FOR THIS BASE RATE REVIEW IS, YOU KNOW, SIMILAR IN TO THE PROCESS WE FOLLOWED BACK IN 2016. UM, AND THE, AND THE SCOPE OF THIS, UH, THIS PROCEEDING IS TO REVIEW THE BASE RATES, UM, THAT ARE BEING CHARGED. AND AS I SAID EARLIER, THERE, THERE ARE OTHER PROCESSES AND TIMES TO ADDRESS THE OTHER COMPONENTS OF CUSTOMER'S BILLS. SO I WOULD JUST SAY THAT'S THE PROPER TIME TO, IF YOU HAVE CONCERNS ABOUT THOSE PORTIONS WOULD BE IN THOSE PROCESS. IF YOU ARE UNSATISFIED WITH THE, THE BREADTH OF THOSE PROCEEDINGS, THEN YOU KNOW, YOU CERTAINLY CAN BRING THOSE UP. UM, AND OF COURSE YOU'VE SHARED THOSE TODAY. SO ARE YOU SAYING THAT IT'S YOUR OPINION THAT THIS IS THE SAME AS LAST TIME, OR I WAS SPEAKING MORE TO THE STRUCTURE OF ENGAGING IN INDEPENDENT HEARINGS TO EXAMINE ARE IMPARTIAL HEARINGS, EXAMINER ENGAGING, UH, ICA, UM, HAVING A MORE, UM, STRUCTURED FORMAT THAN SAY BACK IN 2012, FOR EXAMPLE. YEAH, I WOULD, I WOULD AGREE THE FORMAT IS SIMILAR TO LAST TIME AND THAT'S, THAT'S GREAT. I LIKE THE FORMAT, I GUESS I'M JUST SPEAKING TO THIS, THIS BOUNDARY. UM, BUT IT SOUNDS LIKE AUSTIN ENERGY ISN'T GOING TO CONSIDER EXPANDING, IS THAT WHAT YOUR WE'VE CONSIDERED? UM, WE WE'VE CONSIDERED THE, THE SCOPE AND STRUCTURE OF THIS PROCESS QUITE A BIT. AND THE, AND THE, UH, AND, AND AGAIN, THIS PROCEEDING IS JUST TO ADDRESS THE, THE BASE RATES THAT ARE CHARGED TO CUSTOMERS. [01:25:01] AND WHAT ABOUT THE VALUE OF SOLAR TARIFF VALUE? SOLAR IS, IS ALSO INCLUDED IN THIS, UH, AS WELL. WELL, OKAY, SO THAT'S NOT PART OF THE BASE RATES, SO WHY IS VALUE OF SOLAR INCLUDED AND NOT ANYTHING ELSE, A CHANGE TO THAT TARIFF? OKAY. AND ISN'T ONE OF THOSE CHANGES PROPOSAL TO TAKE SOME, TO RECOVER SOME OF THOSE COSTS FOR THE VALUE OF SOLAR TARIFF THROUGH THE ENERGY EFFICIENCY SERVICES FEE. UM, TIM, DO YOU WANT YOUR CORRECT? OKAY. SO I GUESS I'M, I'M JUST STRUGGLING TO UNDERSTAND HOW WE CAN EVALUATE THAT PROPOSAL WITHOUT ALSO EVALUATING THE ENERGY EFFICIENCY SERVICES FEE. HI, TAMMY COOPER, SENIOR VICE PRESIDENT REGULATORY COMPLIANCE AND COMMUNICATIONS. MY UNDERSTANDING IS THAT THERE'S SPECIFIC LANGUAGE IN THE VALUE OF SOLAR TARIFF THAT SAYS IT WILL BE REVIEWED AT THE SAME TIME. WE DO A BASE RATE REVIEW AND THAT THE OTHER TARIFFS DON'T HAVE THAT PROVISION, BUT THE VALUE OF SOLAR SPECIFICALLY DOES, WHICH IS WHY IT WILL BE CONSIDERED AT THIS TIME. OKAY. THAT'S, THAT'S GREAT. I'M JUST NOT REALLY UNDERSTANDING WHY THAT MEANS THAT YOU CAN'T INCLUDE ANYTHING ELSE. AND HOW DOES A NEW TARIFF EVEN COME TO BE IN THE PAST, THIS NEW TARIFFS HAVE COME TO BE THROUGH THESE PROCEEDINGS. SO HOW WOULD NEW TARIFFS COME INTO EXISTENCE IF NOT THROUGH THESE PROCEEDINGS? WELL, I CAN'T SPEAK TO HOW IT WAS DONE IN 2016. UM, I WASN'T HERE, YOU KNOW, MY UNDERSTANDING WAS THAT IT WAS PRIMARILY A BASE RATE REVIEW, UH, AND THAT IS WHAT, YOU KNOW, THE ORDINANCE REQUIRES, YOU KNOW, IN TERMS OF, YOU KNOW, A PARTY PROPOSING ANOTHER TARIFF. UM, YOU KNOW, I THINK THAT THOSE, YOU KNOW, I'D LET SOMEONE, UH, FROM RATES SPEAK TO HOW, UH, TARIFFS ARE DEVELOPED, BUT, YOU KNOW, IT DEPENDS ON WHAT IT IS AND WHETHER IT IS APPROPRIATE TO BE CONSIDERED IN THE BASE RATE REVIEW PROCESS. SO BACK IN THE 2012, RIGHT CASE IS WHEN THE, THE CURRENT STRUCTURE WAS DEVELOPED IN THE SENSE OF WHAT IS A PASS THROUGH RATE AND WHAT IS BASE RATES. AND SO THAT WAS THE MECHANISM TO SET THE CURRENT, UH, STRUCTURE IN THAT, IN THAT SENSE, YOU'RE SAYING THAT THAT OCCURRED IN 2012, THE I'M SORRY, I'M NOT REALLY UNDERSTANDING HER RESPONSE, THE, THE RIGHT STRUCTURES OF HAVING BASE RATES AND PASS THROUGH RATES WHERE IT WAS DEVELOPED IN THE 2012 CASE. AND WE'RE NOT PROPOSING ANY CHANGES IN THAT, THAT BASIC STRUCTURE. OKAY. SO THEN ARE YOU SAYING THAT IF A TERROR FOR, TO BE PROPOSED, THAT WAS NOT A PASS THROUGH RATE, THEN THAT WOULD BE FAIR TO BRING UP IN THESE PROCEEDINGS? DO YOU, DO YOU HAVE A SPECIFIC EXAMPLE? I GUESS I'M NOT FOLLOWING WHAT YOU'RE ASKING? SURE. LIKE, JUST AS THERE'S A VALUE OF SOLAR TARIFF, SAY THERE WAS A TARIFF PROPOSED TO SUPPORT A CUSTOMER SAID BATTERY STORAGE, IF AT SOME POINT AUSTIN ENERGY WITH, TO PROPOSE A NEW TARIFF, THEY WOULD GO THROUGH A SEPARATE PROCESS THAT WOULD ALLOW FOR INPUT AND GET COUNCIL APPROVAL. SURE. I'M ASKING IF, IF, UH, IF A PARTY WANTS TO MAKE SUCH A PROPOSAL AGAIN, THE, THIS, THIS PROCEEDING IS LIMITED TO THE BASE RATES AND THE SOLAR TARIFF, UM, AND, AND ANY OTHER PROPOSALS BEYOND THAT WITH RESPECT TO NEW TARIFFS IN OUR VIEW, IT WOULD BE BEYOND THE SCOPE OF THE PROCEEDING. OKAY. CAN WE GO BACK TO VALUE OF SOLAR THEN, BECAUSE I STILL DON'T THINK THE QUESTION ABOUT, UM, HOW WE CAN EVALUATE THAT PROPOSAL HAS BEEN ANSWERED IF WE CAN'T EVALUATE THE ENERGY EFFICIENCY SERVICES FEE, WHICH NOW WOULD BE POTENTIALLY USED TO RECOVER THOSE COSTS. HOW, HOW CAN WE DO THAT? IF THAT IS EXCLUDED, I BELIEVE THAT YOU CAN REVIEW THE TARIFF AND THE PROPOSAL, UM, AS IT'S LAID OUT IN THE FILING. UM, I, I DON'T, I CAN'T ANSWER YOUR QUESTION. I DON'T KNOW HOW OR WHY IT IS THAT YOU, YOU NEED TO GO BEYOND, UH, UH, WHAT'S INCLUDED IN THE APPLICATION AND WHAT'S WITHIN THE SCOPE OF THAT TARIFF IN ORDER TO MAKE RECOMMENDATIONS, BUT, OKAY, WELL, I'D BE HAPPY TO ANSWER THAT QUESTION. AND THE REASON THAT I'M CONCERNED IS THAT IF YOU'RE TAKING MORE MONEY OUT OF WHAT IS COMING IN THROUGH THE ENERGY EFFICIENCY SERVICES FEE, THAT IF YOU AREN'T EXPANDING THAT POT OF MONEY, THEN IT'S TAKEN FROM SOME OTHER PROGRAMS, PROGRAMS THAT WE SUPPORT. [01:30:01] SO THAT'S, THAT'S WHY IT'S RELEVANT. AND IF YOU FEEL LIKE YOU NEED TO ADDRESS THOSE ISSUES, THEN, THEN GO FORWARD AND DO SO. OKAY. THANK YOU. DO YOU WANT TO BRING UP THE OTHER ISSUE? OKAY. UM, SO THE OTHER QUESTION THAT I HAVE IS AROUND, UM, JUST TRYING TO GET SOME UNDERSTANDING, AND THERE'S A RESTRICTION ON THE NUMBER OF REQUESTS FOR INFORMATION THAT EACH PARTY CAN ASK, IS THAT INTENDED TO BE A NUMBER OF QUESTIONS OR A NUMBER OF FILINGS. I'M GUESSING IT'S A NUMBER OF QUESTIONS, BUT I DON'T WANT TO ASSUME IT'S A NUMBER OF QUESTIONS. OKAY. IS THERE, WAS THERE, UH, SOME LOGIC AS TO HOW THAT NUMBER WAS DERIVED LOGIC? UH, IT WAS A DESIRE TO ALLOW PEOPLE TO, TO ASK QUESTIONS AND EXPLORE THE, UM, THE FILING WHILE, UM, UH, NOT GIVING, UM, PARTICIPANTS AN UNLIMITED ABILITY TO ASK QUESTIONS AND OVERWHELM, UH, THE ABILITY TO RESPOND TO THEM. AND THAT'S WHY WE ALSO HAVE THESE TWO TECHNICAL CONFERENCES TO ALSO ALLOW PEOPLE TO ASK QUESTIONS AND NOT HAVE THOSE COUNT AGAINST THAT LIMIT. OKAY. SO ANY QUESTIONS THAT WE, UH, CAN WE SUBMIT QUESTIONS IN WRITING PRIOR TO THE DEADLINE AND THOSE, YEAH. IT'S NOT ONLY CAN YOU, WE ASKED INDIVIDUALS TO DO SO, AND THAT'S WHAT WE'VE BEEN GOING THROUGH WITH THE ICA OVER THE LAST. OKAY. SO ANY QUESTIONS WE SUBMIT BEFORE THE DEADLINE DON'T COUNT TOWARDS THAT LIMIT? YOU LOOK AT THE PROCEDURAL RULES THAT LAYS IT OUT. UM, HOW DISCOVER QUESTIONS GOING TO BE COUNTED IN A DRESS, BUT THE, THE INTENTION, THE TENSION, UH, THESE TITLE CONFERENCES WAS TO HAVE AN OPPORTUNITY FOR PEOPLE TO INFORMALLY ASK QUESTIONS. IF YOU SUBMIT A LONG LIST OF QUESTIONS TO AVOID THE 50, UH, UH, QUESTION LIMIT, THEN WE MIGHT NEED A VISIT ABOUT THAT. OKAY. BUT TO BE CLEAR, THERE'S A 20, WE, WE, WE WERE REQUESTING THAT BEFORE THIS TECHNICAL CONFERENCE IN THE ONE IN TWO WEEKS THAT PARTIES SUBMIT A WRITTEN QUESTIONS, 24 HOURS IN ADVANCE, SO THAT WE COULD JUST BE PREPARED OBVIOUSLY. AND YES, THOSE DO NOT COUNT AGAINST THE SPECIFIC WRITTEN RFI QUESTIONS, UM, THERE. SO, YOU KNOW, CERTAINLY PARTIES CAN COME HERE AND ASK US QUESTIONS. WE MAY NOT NECESSARILY HAVE, YOU KNOW, BE PREPARED TO GIVE THE ANSWER AND THEN THEY MAY NEED TO SUBMIT A WRITTEN FOLLOW-UP RFI. THAT WOULD BE PART OF THE 50 LIMITATION. OKAY. THANKS. AND, UM, FORGIVE ME, THIS IS MY FIRST TIME THROUGH ONE OF THESE PROCEEDINGS. WHEN DOES THE ALIGNMENT OF PARTIES HAPPEN? AND I KNOW THAT WHEN PARTIES ARE ALIGNED WITH THE NUMBER OF QUESTIONS THAT THEY'RE ALLOWED TO ASK IS CONSOLIDATE IT. SO PROCEDURALLY, WHEN, WHEN DOES THAT HAPPEN? THAT'S WITHIN THE PURVIEW OF THE IAG. AND SO WHENEVER HE MAKES THAT DETERMINATION, YEAH. I GUESS I'M ASKING, BECAUSE OUR PARTY IS ABLE TO ASK QUESTIONS BEFORE, YOU KNOW, THE ALIGNMENT WOULD OCCUR. AND THEN IF THEY WERE CONSOLIDATED WITH THE NUMBER OF QUESTIONS THAT THEY'RE ALLOWED BE FIGURED BASED ON, YOU KNOW, WHAT THEY HAD PREVIOUSLY ASKED. YEAH. I DON'T KNOW THE ANSWER TO THAT QUESTION DIRECTLY. I WOULD SUGGEST THAT YOU START BACK, UH, UH, SEEKING TO PARTICIPATE IN THE PROCEEDING. AND THEN, UM, I THINK THE IAG AND OTHERS CAN ADDRESS IT, UM, AT THAT TIME. OKAY. YEAH. I MEAN, JUST TO BE CLEAR, THE INTENT IS, IS TO, TO BE ABLE TO ALLOW PEOPLE TO, YOU KNOW, ASK QUESTIONS AND, YOU KNOW, EITHER THROUGH THESE TYPES OF CONFERENCES OR THROUGH DISCOVERY AND, AND, UH, GET COMFORTABLE WITH THE FILING. SO, UM, AS FAR AS THAT SPECIFIC, UM, TWIST ON IT, UM, I DON'T KNOW, SITTING HERE TODAY EXACTLY HOW THE IHG IS GOING TO HANDLE THAT. OKAY. THANK YOU. YEAH. I'M SORRY. OH, I WAS JUST GOING TO SPECULATE OFF THE RECORD SPECULATION THOUGH THAT PROBABLY THE IHG IS NOT GOING TO ALIGN PARTIES BEFORE THE DEADLINE TO REQUEST TO PARTICIPATE, WHICH IS MAY 18TH, IF THAT HELPS YOU. OKAY. THANKS. YOU PUSHED THE BUTTON ON THE RIGHT. THANK YOU, JOHN RUSS, HOVERED WITH TIC. UM, I'VE COUPLE OF QUESTIONS FOR YOU IN THE RATE FILING PACKAGE ON PAGE 60, [01:35:01] Y'ALL TALK ABOUT, UH, THE ERCOT OR SELECTING THE ERCOT 12 CP METHODOLOGY. UM, AND I WAS HOPING YOU COULD EXPLAIN HOW THE 12 CP METHODOLOGY BETTER ALIGNS WITH THE COSTS AND BENEFITS OF AUSTIN ENERGY'S GENERATION FLEET SO AUSTIN ENERGY OVER, NOT OVER THE COURSE OF, UH, GOING THROUGH A RATE REVIEW IN THE LAST, UH, COUPLE OF OPPORTUNITIES THAT ALL SYNERGY HAS, HAS DONE. SO, UM, IT IS REVIEWED AND EVALUATED A MYRIAD OF POTENTIAL ALLOCATORS FOR PRODUCTION DEMAND. UM, AND IT, THE, THE, THE, THE APPROACH OF USING THE ERCOT 12 CP, WHICH IS WHAT'S IN THE PROPOSAL IS CONSISTENT WITH WHAT WAS USED IN THE 2016, THE LAST RATE REVIEW, AND ALSO ENERGY ARRIVED AT THE DECISION THAT THAT WAS THE APPROPRIATE ALLOCATOR, UH, FOR PRODUCTION DEMAND AND PART, BECAUSE THE, THE RESOURCES OF AUSTIN ENERGY ARE THERE AND PROVIDE BENEFIT AND VALUE TO ALL OF ITS CUSTOMERS, UM, IN EVERY MONTH OF THE YEAR. SO THROUGHOUT THE YEAR, IT'S NOT, NOT JUST IN THE SUMMER MONTHS, BUT THROUGHOUT THE YEAR, UH, THERE IS A BENEFIT TO, TO, TO THE CUSTOMERS AND, AND THE, ALL OF THE RESOURCES, UH, GENERATION RESOURCES ARE SOLD INTO THE ERCOT, UH, WHOLESALE MARKET. AND SO THAT IS THE VENUE IN WHICH, YOU KNOW, THAT THAT TRANSACTION IS DONE. AND SO ALIGNING THAT ALLOCATOR WITH THOSE SET OF FACTS IS WHAT AUSTIN ENERGY CAME TO BE CONCLUDED WAS THE MOST APPROPRIATE WAY TO ASSIGN THOSE, THOSE COSTS. UH, AND WAS THIS DONE THROUGH AN ANALYSIS OF SOME SORT WAS DECIDING ON 12 CP DONE THROUGH AN ANALYSIS, UH, OR HOW IS IT QUANTIFIED? SURE. SO, UM, EH, IN, IN PRIOR, UH, RATE REVIEWS THAT AUSTIN ENERGY HAS CONDUCTED WHEN EVALUATING WHAT THE VARIOUS OPTIONS WERE, UH, THAT ARE TRADITIONALLY EMPLOYED FOR ALLOCATING PRODUCTION DEMAND. THEY DID LOOK AT VARIOUS ALLOCATORS AND AT THAT TIME THEY DID QUANTIFY IT AND LOOK AT THE VARIOUS, YOU KNOW, UM, W W WHAT THOSE ALLOCATORS WOULD LOOK LIKE AS PART OF THE PROCESS OF EVALUATING THEM. UM, BUT, BUT LARGELY THE, THE DECISION ON SELECTING THE ALLOCATOR THAT THEY DID WAS BORN OF, UH, A RECOGNITION OF THE ALIGNMENT, UH, WITH THE REALITY OF THAT WHOLESALE MARKET AND ERCOT. UM, AND SO JUST THE RATIONAL NEXUS THERE BETWEEN THE MARKET ENVIRONMENT THAT THEY ARE SITUATED IN, UM, AND THE ALLOCATION OF THOSE COSTS, I WILL POINT OUT THOUGH THAT THERE WAS NO, UH, RECENT REVISITING OF THOSE ANALYSES IN THE, UM, IN THIS MOST RECENT LIEN FILED RATE REVIEW, THE, THE MODEL, UH, THAT WAS MADE AVAILABLE AS PART OF THE RAPE FILING PACKAGE DOES ALLOW, YOU KNOW, OTHER INDIVIDUALS TO EVALUATE, YOU KNOW, ANY NUMBER OF THINGS THAT THEY MIGHT COME UP WITH, BUT, BUT AUSTIN ENERGY DID NOT GO AND REVISIT OR REANALYZE ANY OF THAT AS PART OF THIS PARTICULAR, MOST RECENT RATE FILING, UH, WOULD THAT PREVIOUS, OH, I'M SORRY. CAN I, I JUST WANT TO ADD A LITTLE BIT TO THIS. SO THE QUESTION, IF I UNDERSTAND WHAT YOU ASKED DID AUSTIN, OR SHE PERFORMS SOME KIND OF QUANTITATIVE ANALYSIS EFFECTIVELY TO ARRIVE AT THE DECISION THAT ERCOT 12 CP WAS THE APPROPRIATE PRODUCTION, DEMAND, COST ALLOCATION METHODOLOGY. IS THAT A GOOD PARAPHRASING? OKAY. I HAVE TO SAY, I THINK IT'S A LITTLE BIT OF A MISGUIDED QUESTION IN THAT THAT'S NOT TYPICALLY HOW CLASS ALLOCATION FA I'M JUST SPEAKING GENERALLY THE GENERAL PROCESS TO FOLLOW, TO, TO CHOOSE A, A CLASS ALLOCATION METHODOLOGY IS TO SORT OF PERFORM AN INQUIRY INTO COST CAUSATION. WHAT IS, WHAT ACTIVITY ON THE SYSTEM IS CAUSING THIS COST? AND THAT'S LIKE AN INVESTIGATIVE EXERCISE. IT'S NOT REALLY A QUANTITATIVE ANALYSIS. YOU KNOW, YOU MIGHT GO TO THE ENGINEERING GROUP AND, OR THE, YOU KNOW, THE POWER SUPPLY GROUP AND, AND, AND ASK THEM FOR INFORMATION ABOUT OPERATIONALLY. HOW DO THEY GO ABOUT, YOU KNOW, WHAT REALLY TRYING TO GET TO THE ROOT CAUSE OF WHAT, WHAT IS THE ACTIVITY THAT, THAT CAUSES US AN ENERGY THEN TO GO HAVE TO, UM, SPEND COSTS ON EXISTING RESOURCES OR ACQUIRE NEW RESOURCES. AND THAT'S NOT REALLY A QUANTITATIVE ANALYSIS PER SE, ONCE YOU'VE ARRIVED AT WHAT YOU THINK THAT THE RIGHT COST CAUSATION BASIS IS, AND WHAT ACTIVITY IS THE DRIVER OF THE COSTS. [01:40:01] NOW YOU CAN QUANTIFY THOSE UNITS OF ACTIVITY AND USE THOSE TO DEVELOP AN ALLOCATION BASIS, BUT THAT'S NOT REALLY A QUANTITATIVE ANALYSIS THAT YOU'RE DOING TO PICK A METHODOLOGY, IF THAT MAKES SENSE. UH, OF COURSE, THANK YOU. UM, COULD YOU ALL PROVIDE THE PAST ANALYSIS, WHETHER IT BE QUALITATIVE OR NOT, THAT LED TO THE 12 CP DECISION ON WHETHER THERE WAS A PREVIOUS RATE CASE OR IN THE PREVIOUS SITUATION? I DON'T KNOW THAT THERE IS ANY WRITTEN DOCUMENTATION. THANK YOU. UM, COULD YOU ALL CONFIRM THAT THE PRIMARY SUBS PNC INCLUDES ALL PLANT INVESTMENT AND EXPENSES RELATED TO DISTRIBUTION, SUBSTATION POLES, TOWERS, FIXTURES, OVERHEAD UNDERGROUND CONDUCTORS DEVICES AND CONDUIT? SORRY, I CAN SAY I, I I'LL TAKE THIS ONE. HOLD ON JUST A MOMENT. FIRST OF ALL, LET ME GET YOUR FULL LIST. AND THEN I'LL, DOUBLE-CHECK, UH, PLANT INVESTMENTS AND EXPENSES RELATED TO DISTRIBUTION, SUBSTATIONS, POLES, TOWERS, FIXTURES, OVERHEAD UNDERGROUND CONDUCTORS DEVICES AND CONDUIT. I AM PRETTY SURE THE ANSWER IS YES, BUT I'M GOING TO TELL YOU FOR SURE, ON A SECOND. THANK YOU. AND WAS THE QUESTION, WHAT IS ALLOCATED ON A 12 NCP BASIS, OR WHAT'S INCLUDED IN THE PRIMARY DISTRIBUTION SYSTEM, JUST CONFIRMING THAT IT WAS INCLUDED IN THE PRIMARY SUBS PNC. SO, SO THE QUESTION IS, DOES THE PRIMARY SUBS, PNC SUB FUNCTIONALIZATION OF COSTS THAT GROUPING OF COSTS INCLUDE SUBSTATIONS, POLES, TOWERS, FIXTURES, DEVICES, CONDUIT, I THINK YOU SAID UNDERGROUND AND OVERHEAD, UM, CONDUCTOR, CORRECT. THAT JUST, THAT, THAT INCLUDES ALL OF THE PLANT INVESTMENT AND EXPENSES RELATED TO THOSE COSTS. GIVE ME A SECOND. YEAH. SORRY. I SHOULD HAVE SUBMITTED THESE AHEAD OF TIME. I APOLOGIZE. CAN WE JUST DOUBLE-CHECK AND THEN DO QUALITY INTERNAL QUALITY CONTROL AND GIVE YOU A DEFINITIVE ANSWER AT THE TAIL END OF THAT. OF COURSE. UM, ANOTHER QUESTION, COULD YOU EXPLAIN WHY AUSTIN ENERGY USES THE SAME ALLOCATION FACTOR FOR THE COSTS ASSOCIATED WITH DISTRIBUTION, SUBSTATIONS, POLES, TOWERS, FIXTURES, OVERHEAD, AND UNDERGROUND CONDUCTORS AND DEVICES AND CONDUIT. SO THE COSTS ASSOCIATED WITH, UH, THOSE VOTES, THOSE VARIOUS DISTRIBUTION, UH, SERVICES ARE ALL, UM, REASONABLY ALLOCATED BASED UPON THAT ALLOCATOR THAT WE'VE SELECTED. IN OTHER WORDS, THEY, WE HAVE GROUPED THEM TOGETHER BECAUSE THAT THE TYPES OF COSTS THAT, THAT ARE DRIVEN TO CUSTOMER CLASSES, RESPONSIBILITY, AND A SIMILAR MANNER. OKAY, THANK YOU. UH, DID ANY CUSTOMERS IN THE PRIMARY VOLTAGE OVER THREE MEGAWATTS AND OVER 20 MEGAWATTS OVER 85% AFL CLASSES TAKE DELIVERY SERVICE DIRECTLY FROM AUSTIN ENERGY OWNED DISTRIBUTION SUBSTATIONS? I CAN. SO JUST TO CLARIFY, I THINK WHAT YOU'RE ASKING IS, ARE THERE ANY CUSTOMERS WHO ARE SERVED AT PRIMARY VOLTAGE THAT DON'T RECEIVE PRIMARY FEEDER LINE SERVICE BECAUSE THEY OWN THEIR OWN FEEDER LINES AND THEY CONNECT DIRECTLY TO THE SUBSTATION, MAYBE AT THE SUBSTATION TRANSFORMER? YES. OKAY. I DON'T KNOW THE ANSWER TO THAT QUESTION. WE'LL HAVE TO GET BACK TO YOU. UH, THANK YOU. AND WHEN YOU'RE LOOKING INTO THAT, IF YOU WOULDN'T MIND, UH, FIGURING OUT WHICH PORTION OF THE 12 NCP LOADS OF THOSE CLASSES AS REPRESENTED BY CUSTOMERS TAKING DELIVERY DIRECTLY FROM THAT SUBSTATION, AND THEN THE RATIONALE FOR ALLOCATING COSTS OF PRIMARY [01:45:01] DISTRIBUTION, UH, TO CUSTOMERS THAT TAKE SERVICE DIRECTLY. I DON'T KNOW IF YOU CAN SPEAK TO THAT, BUT, UM, OH, AS TO THE QUESTION AS THE RATIONALE FOR NOT HAVING A SEPARATE SET OF CHARGES FOR CUSTOMERS WHO TAKE PRIMARY SUBSTATION SERVICE, BUT NOT PRIMARY FEEDER SERVICE. YES. WE, WE DON'T, WE HAVEN'T DEVELOPED ANY KIND OF, UH, ANALYSIS FOR THAT, TO THAT, TO MY KNOWLEDGE. UH, MY NEXT QUESTION, DOES THE RATE FILING PACKAGE CONTAIN INFORMATION ABOUT THE DATES AND TIMES OF THE DISTRIBUTION SUBSTATION SYSTEM PEAK DEMANDS? I BELIEVE THE ANSWER IS YES. GIVE ME JUST A MOMENT AND WHILE HE'S LOOKING, JUST SO I CAN BETTER UNDERSTAND THE QUESTION, ARE YOU ASKING WHETHER OR NOT THERE'S INFORMATION AVAILABLE IN THE RATE FILING PACKAGE THAT WOULD TELL YOU SOMETHING ABOUT WHAT THE PEAK DEMANDS WERE ON INDIVIDUAL SUBSTATIONS? UM, I'M NOT SURE. UH, I THINK GENERALLY IT IS INFORMATION AVAILABLE ABOUT, UH, YEAH, I GUESS I HAVE THE DISTRIBUTION SUBSTATION SYSTEM AS A WHOLE. AND YOU WANT HER TO KNOW THE SPECIFIC TIME OF THE, OF THE PEAK DEMANDS THAT ARE USING THE ALLOCATION? YEAH. THE DATES AND THE TIMES IT LOOKS LIKE THAT WE DON'T HAVE THOSE IN THE COST STUDY. YEAH. THE, THE DATES AND TIMES ARE NOT IDENTIFIED IN THE RAPE FILING PACKAGE. IT'S ALL. IS THE DATA AVAILABLE IN A DIFFERENT FORM OR IS THAT SOMETHING THAT WE WOULD NEED TO REQUEST WE'RE GOING TO HAVE TO GET BACK TO YOU? I'M NOT SURE. THANK YOU. UM, AND THEN IS THERE, I, WE TALKED ABOUT THIS A SECOND AGO, BUT JUST DOUBLE CHECKING. IS THERE SPECIFIC EVIDENCE THAT AUSTIN ENERGY IS RELYING UPON AN ALLOCATING THE COSTS OF PRIMARY DISTRIBUTION FACILITIES ON THE 12TH AND CP BASIS? SO YOUR QUESTION IS WHETHER OR NOT WE, WE ARE, OR NOT USING THE 12 AND CP AS THE ALLOCATOR FOR SOME OF THE DISTRIBUTION COSTS. I ASKED A QUESTION, SORRY. UH, IS THERE A SPECIFIC EVIDENCE THAT YOU'RE RELYING, UH, TH THAT YOU'RE RELYING ON TO ALLOCATE COSTS BASED ON THE 12 NCP BASIS? UH, I THINK THIS GOES BACK TO, UH, BRIAN'S EARLIER COMMENT ABOUT, UH, INVESTIGATING THE, THE RATIONAL, UH, EXPECTED COST CAUSATION. WHAT'S THE MOST REASONABLE DRIVER, UH, RECOGNIZING HOW, UM, YOU KNOW, COSTS ARE CAUSED AND, AND THE USING THAT AS A MEANS TO IDENTIFY AN APPROPRIATE ALLOCATION METHOD, TO, TO ASSIGN THOSE COSTS TO THE CUSTOMERS THAT ARE CAUSING THAT COST TO BE INCURRED. AND I GUESS MY QUESTION IS, ARE YOU RELYING ON SPECIFIC EVIDENCE FOR THAT? AND IF SO, WHAT IS THAT EVIDENCE? OH, I DON'T KNOW THAT WE HAVE ANYTHING DOCUMENTED. THAT WOULD BE, BE IT BE IN RESPONSE TO THAT. OKAY. THANK YOU. UM, AND COULD YOU EXPLAIN WHY AUSTIN ENERGY REQUIRES A, UH, 2.0 TIMES DEBT SERVICE COVERAGE RATIO? SO, SO FOR CLARITY, UH, OR, WELL, FOR STARTING OFF, UH, THE, THE TWO TIMES DEBT SERVICE COVERAGE REQUIREMENT IS A FINANCIAL POLICY THAT IS ADOPTED, UH, AND IMPROVED IT, UH, BY, BY CITY COUNCIL. IT SHOULD BE POINTED OUT THOUGH THAT THE, THE DEBT SERVICE COVERAGE, UM, ITSELF IS NOT A DRIVER OF THE OVERALL REVENUE REQUIREMENT. IT IS CERTAINLY IMPORTANT, UH, BUT IT IS NOT AN INPUT THAT IS DETERMINING THE OVERALL REVENUE REQUIREMENT. IT IS SOMETHING THAT IS A, UM, A POLICY THAT SHOULD BE, UH, ACHIEVED AS PART OF THE PROCESS, BUT IT IS NOT AN INPUT INTO DETERMINING THE OVERALL REVENUE REQUIREMENT AS [01:50:01] IT EXISTS TODAY UNDER THE METHODOLOGY THAT AUSTIN ENERGY IS UTILIZING TO DEVELOP ITS REVEREND REQUIREMENT. OKAY. UM, COULD YOU ALSO TALK ABOUT THE POLICY REASONS FOR MAINTAINING THE AA CREDIT RATING? OKAY. ASK YOUR QUESTION ONE MORE TIME, PLEASE. THANK YOU. OF COURSE. COULD YOU TALK ABOUT WHAT THE POLICY REASONS ARE FOR MAINTAINING UP AN AA CREDIT RATING? WELL, WE CURRENTLY HAVE A AA CREDIT RATING AND, UM, UM, UH, IT IS, UH, PART OF OUR STRATEGIC PLAN, I BELIEVE, TO, UM, TO MAINTAIN THAT AA CREDIT RATING. AND, UM, IT ALLOWS US TO KEEP OUR EXPENSES DOWN, RIGHT. SO THERE ARE COST SAVINGS ASSOCIATED WITH BORROWING AND, AND OTHER CREDIT REQUIREMENTS SPECIFICALLY, UH, IN, UH, IN, UH, ENERGY MARKET. UH, HAS AUSTIN ENERGY CONDUCTED A COST BENEFIT STUDY OF SETTING RATES TO ACHIEVE THE CREDIT METRICS SUPPORTED BY THE AA CREDIT RATING AS OPPOSED TO A LOWER INVESTMENT CREDIT RATING? NO. OKAY. THANK YOU. THAT'S ALL MY QUESTIONS. THANK YOU, BUTTON ON THE RIGHT. ALRIGHT. I FOUND IT 50 50 CHANCE, RIGHT? UH, ERIC GOLF, UH, WE'LL, I'LL BE INTERVENING ON BEHALF OF, UH, A NUMBER OF GROUPS, BUT HAVE NOT YET AT THIS TIME AND INCLUDE SOLAR AND BATTERY INSTALLERS, CIVIC GROUPS FOCUSED ON PARKS AND, UH, REAL ESTATE ISSUES. UM, I APOLOGIZE FOR NOT STICKING TO MY QUESTIONS IN ADVANCE, AND I APOLOGIZE FOR MY ALLERGIES. IF YOU CAN'T HEAR ME, PLEASE LET ME KNOW. UM, SO, UM, THE FIRST QUESTION IS, HAS THE CITY OR AUSTIN ENERGY CONSIDERED UPGRADING THE UTILITY BILLING SYSTEM AND INCLUDING THE COST OF THAT, UM, IN THE BASE CASE, IN ORDER TO SUPPORT A VARIETY OF RATES IN THE FUTURE, AS I'M SURE YOU'RE AWARE THE BILLING SYSTEM HAS BEEN A CONSTRAINT ON RATE DEVELOPMENT IN THE PAST. SO, SO YOUR QUESTION IS I'M SORRY. SO SURE. SO, UM, THE IT INFRASTRUCTURE RELATED THE UTILITY BILLING SYSTEM, UM, HAS BEEN A TECHNICAL CONSTRAINT ON RATE DEVELOPMENT IN THE PAST, UH, IN TERMS OF THE COST AND TIME OF UPGRADING THAT SYSTEM. AND, UH, HAVE YOU CONSIDERED, UM, REPLACING OR UPGRADING THAT SYSTEM AS PART OF, UM, THE COST ASSOCIATED WITH THE BASE BASE RATES? SO, UM, REPLACEMENT OR, UH, UH, REPLACEMENT OF, OR A MAJOR UPGRADED THE BILLING SYSTEM IS NOT PART OF THIS CONSIDERATION. UM, TECHNICAL AND FUNCTIONAL UPGRADES ARE TAKEN AS REGULAR COURSE OF NATURE. SO, UH, RATE DEVELOPMENT FOR SPECIALIZED RATES, YOU KNOW, IT, IF AS THEY COME ACROSS, THERE SHOULD BE NO IMPEDIMENTS FROM THE BILLING SYSTEM TO COMPLETE THOSE. OKAY. UM, SO YOU HAVEN'T EXPERIENCED IN THE PAST, UM, CONSTRAINTS RELATED TO THE BILLING SYSTEMS FUNCTIONALITY AS A RATE DESIGNS HAVE BEEN PROPOSED BY GROUPS, UH, IN THE LAST FIVE YEARS, UH, THE, THE COST OF SERVICE CERTAINLY DOESN'T DEAL WITH THAT. IT'S A HISTORICAL COST. SO WHATEVER COSTS ARE, ARE THAT SURROUND THE BILLING SYSTEM IS WHAT'S EMBEDDED IN THE COST OF SERVICE. YES, I UNDERSTAND THAT, BUT, SO I'M SORRY, I GUESS THE RIGHT WAY TO ASK THE QUESTION IS YOU HAVE NOT CONSIDERED, UM, REPLACING OR UPGRADING THAT SYSTEM AND THE COST AND BENEFITS OF THAT ON BASE RATES OR RATE DESIGN. ONCE AGAIN, THIS IS AN EMBEDDED COST. I MEAN, IF THE SCENARIO IS, IS, WELL, IF WE WANT TO DO X, WHAT ARE THE COSTS AND THIS CASE DIDN'T HAVE ANYTHING TO DO WITH THAT. OKAY. UM, AND THEN, UM, IN REGARDS TO, UH, INTERCONNECTION ISSUES OF SOLAR AND BATTERIES, THIS IS NOT A QUESTION, BUT JUST A STATEMENT, FYI, THE THINGS THAT WILL COME UP, UM, AS IT RELATES TO THE VALUE OF SOLAR, UM, WE INTEND TO ASK QUESTIONS AND TRY TO MAKE CHANGES TO IT [01:55:01] RELATED TO, UM, THE INTERCONNECTION PROCESS FOR RESIDENTIAL, SOLAR, AND BATTERIES AND STANDALONE SOLAR, INCLUDING THE TIMELINE, PERMITTING INSPECTIONS, FEE STRUCTURES, UM, AND, UM, AND HOW THOSE INTERACT WITH THE OVERALL COSTS AND STRUCTURE OF THE VALUE OF SOLAR TARIFF, UM, AS WELL AS POTENTIAL CHANGES OR ADDITIONS TO ASSOCIATED REBATE PROGRAMS OR CHANGES TO THOSE REBATE PROGRAMS. SO FOR EXAMPLE, YOU MAY HAVE SEEN A STUDY FROM UT THAT SHOWED THE POTENTIAL SIZE OF A, UH, RESIDENTIAL BATTERY REBATE FOR AUSTIN ENERGY THAT COULD BE INCLUDED AS A SUBPART TO, UM, THE VALUE OF SOLAR TARIFF. I'M NOT ASKING YOU A QUESTION, BUT MORE INFORMING YOU, SO YOU CAN THINK ABOUT THAT, YOU KNOW, AS WE HAVE THESE DISCUSSIONS, UM, I AGREE WITH, UM, QUEBEC, UM, UM, PUBLIC CITIZEN ABOUT THE INTERACTIONS OF THE ENERGY EFFICIENCY, UH, COSTS AND THE, THE VALUE OF SOLAR TARIFF. UM, AND SO WE ANTICIPATE ASKING QUESTIONS ABOUT, UH, THOSE INTERACTIONS, UM, AND, UM, OH, UM, ALSO PROPOSE, UM, BECAUSE OF THE, THE PROPOSED LIMITED SCOPE OF THIS, UM, POTENTIAL SUBSTANTIAL CHANGES TO THE VALUE OF SOLAR TARIFF TO ACCOUNT FOR, UM, BATTERIES, UM, MICRO GRIDS, UM, MULTI-FAMILY INSTALLATIONS, UM, AND WE'LL HAVE MEMBERS OF THE COALITION THAT HAD BEEN IMPACTED BY CURRENT POLICIES AND PROCEDURES IN THAT REGARD. UM, AND THEN, UM, WE'LL BE, UM, REQUESTING EITHER DIRECTLY THROUGH, UM, THE RATE CASE OR THROUGH SIDE CONVERSATIONS, UM, AS IT COMES, YOU KNOW, EVENTUALLY BEFORE CITY COUNCIL, UH, CHANGES TO THE PROCESS AROUND EASEMENTS. SO FOR EXAMPLE, UM, THE, HAVING A P A PROCEDURE, UM, THAT'S EASILY TO FOLLOW AND UNDERSTAND TO BURY TRANSMISSION AND DISTRIBUTION LINES, UM, CHANGES TO HOW EASEMENTS ARE SHARED WITH TRAIL, UM, PARKS, PLAYGROUNDS, UH, INTERACTIONS WITH THE DISTANCE BETWEEN, UH, YOUR INFRASTRUCTURE AND, AND PRIVATE USERS, UM, AND, UM, AND THEN ACQUISITION OF EQUIPMENT AS PART OF THE BASE CASE IN ORDER TO BETTER MANAGE THESE BINS. SO, FOR EXAMPLE, I UNDERSTAND, AND WE'LL ASK QUESTIONS, UM, THAT THE EASEMENTS RELATED TO, UM, DISTRIBUTION TRANSFORMERS IS IMPACTED BY AVAILABILITY OF EQUIPMENT TO MAINTAIN THOSE TRANSFORMERS, UH, TO THE EXTENT THAT'S TRUE. UM, WE WILL ADVOCATE FOR YOU TO ACQUIRE, UM, ADDITIONAL EQUIPMENT TO BETTER MEET HIM, THOSE TRANSFORMERS WITH A SMALLER EASEMENT, WHICH THOSE COSTS COULD BE INCLUDED IN YOUR RECOVERY. UM, THIS IS MORE INFORMATIVE THAN EXCEPT FOR THE ONE QUESTION I HAD, BUT I'M LOOKING FORWARD TO PARTICIPATING. THANK YOU SO MUCH. APPRECIATE IT. IS THERE ANYONE ELSE IN THE AUDIENCE THAT HAS QUESTIONS? ALL RIGHT. WELL, WE APPRECIATE EVERYONE'S PARTICIPATION TODAY. WE'VE OBVIOUSLY GOT A NUMBER OF ITEMS THAT WE, UM, COMMITTED TO FOLLOW UP ON, AND WE'LL DO THAT IN SHORT ORDER AND GET WITH THOSE, UH, INDIVIDUALS WHO ASKED THE QUESTIONS. AS I NOTED AT THE OUTSET, IF WE PROVIDE ANY DOCUMENTATION, UH, TO, UH, PARTICIPANTS, WE'LL MAKE SURE THAT WE INCLUDE THAT ON THE CLERK'S WEBSITE, UH, WITH THAT, UH, I WOULD CONCLUDE THIS TECHNICAL CONFERENCE, AS I NOTED. WE'VE GOT ANOTHER ONE SCHEDULED, UH, ON MAY THE 18TH IN THIS SAME LOCATION, UM, BETWEEN NINE AND 12. THANKS EVERYONE. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.