* 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. [00:00:09] WE'RE GOING TO GO AHEAD AND GET STARTED. GOOD MORNING, EVERYONE. THANK YOU FOR YOUR PATIENCE. UM, THIS IS, AS YOU ALL KNOW, THE SECOND TECHNICAL CONFERENCE AND THE AUTHOR ENERGY, 2022 BASE RATE REVIEW. I'M THOMAS MERCADO. UM, JUST FOR THOSE WHO MAY NOT BE AWARE, WE'RE NOT HERE FOR THE FIRST TECHNICAL CONFERENCE. OUR PLAN TODAY IS TO, UH, ANSWER QUESTIONS THAT WE'VE RECEIVED. UM, WE'VE ALREADY, UM, VISITED, UH, AMONGST OURSELVES ABOUT THE QUESTIONS THAT HAVE BEEN SUBMITTED PREVIOUSLY. WE DID RECEIVE A COUPLE OF SETS JUST IN THE LAST FEW HOURS, UH, OR VERY LATE IN THE DAY YESTERDAY THAT, UM, WE MAY NOT HAVE RESPONSES TO TODAY. UM, AND IN THAT EVENT WE WILL, UM, FOLLOW UP, UM, AFTER THIS TECHNICAL CONFERENCE, OUR PLAN IS TO GO FROM NOW UNTIL ABOUT 10 30. WE'LL TAKE A SHORT BREAK, UH, AND THEN WE'LL COME BACK, UH, AFTER, UH, ABOUT A 10 MINUTE BREAK AND THEN WE'LL PROCEED ON UNTIL, UM, SLIGHTLY AFTER NOON. UM, SO THAT'S OUR PLAN. WE HAVE RECEIVED QUESTIONS FROM A TIC TIC SENT. I'M GOING TO SAY THREE DIFFERENT SETS OF ROUNDS OF QUESTIONS, THREE EMAILS, CONTAINING QUESTIONS. UH, ALSO, UH, WE RECEIVED, UM, TWO SETS FROM THE ICA THAT SECOND SET AGAIN CAME IN VERY LATE. AND SO WE'RE NOT GOING TO BE ABLE TO RESPOND TO THOSE, UM, TODAY. UH, THE SAME IS TRUE OF, UM, QUESTIONS FROM, UH, LINETTA COOPER. IS IT, UM, TO WR? IS THAT THE OKAY. THE, UH, CLIENT, UH, GROUP, UM, UH, AND THEN WE RECEIVED A COUPLE OF QUESTIONS FROM PAUL ROBINSON. WE'LL ADDRESS THOSE AS WELL. WE ARE AWARE THAT WE RECEIVED FORMAL SETS OF DISCOVERY FROM, UH, T TIC NXP AND, UM, JUST A MOMENT AGO, PAUL ROBINS, UH, AND WE WILL PROVIDE ANSWERS TO THOSE QUESTIONS, UM, ALONG THE USUAL, UM, PROCEDURAL, UH, PROCEDURES. UM, SO BEFORE WE GET STARTED, YES, UH, CYRUS. YEAH. IF WE HAVE SOME QUESTIONS JUST ABOUT NOT QUESTIONS, NOT LIKE DISCOVERY QUESTIONS, BUT JUST MORE PROCEDURAL. AND WE ASK CERTAINLY, YEAH, I MEAN, OUR REQUEST WAS THAT PEOPLE PROVIDE THEIR QUESTIONS TO US 24 HOURS IN ADVANCE OF THIS TECHNICAL CONFERENCE, PRIMARILY, JUST SO WE COULD GET ORGANIZED AND HAVE MORE INFORMATIVE, UM, RESPONSIVE, UH, RESPONSES. UM, BUT IF YOU HAVE QUESTIONS TODAY, CERTAINLY. UM, AND I WOULD LIKE TO RESERVE THOSE TO THE END, IF WE COULD, I'LL GO THROUGH THE, UH, THE QUESTIONS THAT WE RECEIVED, UM, FORMALLY, UH, FIRST, UH, JUDGING. OH, VERY GOOD. OKAY. AND I SEE DAVE EFRON, UM, WHO WORKS WITH THE ICA, HAS NOW JOINED US GOOD MORNING DAY. UM, OKAY. UM, I WOULD LIKE IF WE COULD TO GO AROUND AND JUST, UM, HAVE EVERYONE INTRODUCE THEMSELVES, I'LL START ON MY LEFT, UH, AND WHO YOU REPRESENT IF YOU'RE REPRESENTING SOMEONE, INCLUDING YOURSELF. OKAY, GOOD MORNING, CYRUS. YOU'RE UP? YEAH. UH, CYRUS DON'T HAVE SIERRA CLUB. UM, WE'RE, WE'RE GOING TO BE PATRICK IN THE CASE WITH PUBLIC CITIZEN AS WELL. SO SORT OF HERE ON PAUL ROBBINS ON THE CONSUMER. GOOD MORNING, PAUL, AND THEN BEHIND CYRUS AND PAUL Y'ALL WE'LL JUST GO AHEAD. GOOD MORNING. UH, BEN WAL-MART AND JOHN HUBBARD, THE TIC, UH, AND THEN I, UH, LANETTA HI, I'M LINDA COOPER. UM, MY CLIENTS ARE TWO WOMEN, RIGHT. THERE'S ONE LIVING INSIDE THE CITY OR LIVING. GOOD MORNING. I KNOW YOU MARK. UM, HOW ABOUT IN THE BACK THERE? HELLO, MOLLY. OKAY. I GOT IT. HEY FOLKS. ANYONE ELSE? OKAY, VERY GOOD. UM, THEN WHY DON'T WE GO AHEAD AND GET STARTED? UH, AND, UH, WE CAN JUST KICK IT OFF, UH, GOING THROUGH THE, UM, QUESTIONS THAT WE RECEIVED FROM THE ICA. UM, WE RECEIVED A NUMBER OF QUESTIONS. UM, I WOULD ALSO REMIND FOLKS TO, UM, SPEAK INTO THE MICROPHONE AND IF YOU'RE GOING TO HAVE EXTENDED BACK AND FORTH, JUST COME TO THE TABLE, PLEASE AND PUSH THE BUTTON ON THE RIGHT. UH, IT'LL ELIMINATE RED WHEN IT'S ON. UM, OKAY. SO FIRST QUESTION. UM, WE RECEIVED, UM, [00:05:04] FROM THE ICA, UH, THIS QUESTION ASKED FOR, WITH RESPECT TO THE CURRENT TIERS FOR RESIDENTIAL INSIDE CITY, PLEASE PROVIDE THE AVERAGE LOAD FACTOR FOR CUSTOMERS WITHIN EACH TIER BASED ON LOAD SAMPLING DATA. IF THE INFORMATION IS AVAILABLE, PROVIDE THE LOAD FACTORS BY TIER FOR WINTER AND SUMMER. UM, GOT JOE LAURA'S NAME NEXT TO THIS, BUT ALSO BELIEVE THAT THIS INFORMATION IS NOT AVAILABLE. I CAN TAKE THIS ONE TIME. SO, UH, BRIAN MURPHY, I WORK WITH THE RATES TEAM, UH, AUSTIN ENERGY. SO THE SHORT ANSWER TO THIS IS JUST WHAT THOMAS SAID, THAT WE DON'T HAVE IT. WE HAVEN'T PERFORMED THIS ANALYSIS. UM, THE LONG ANSWER WOULD BE THAT IF SOMEONE WERE TO FILE A FORMAL RFI WOULD TAKE US SOME TIME WITH OUR EXISTING LOAD, UH, RESEARCH DATA THAT WE DID FOR THE TEST YEAR. WE COULD PULL TOGETHER AN ANALYSIS LIKE THIS, BUT THERE ARE A NUMBER OF, UH, CAVEATS, I GUESS, THAT I WANT TO GIVE, UM, BEFORE, BECAUSE IT'S, UH, IT'S SORT OF A CAVEAT EMPTOR BECAUSE, UH, IT MAY NOT BE THAT USEFUL INFORMATION IF WE DO IT. AND I'LL EXPLAIN TO YOU IN A SECOND HERE, WHY THAT'S TRUE. SO, UM, IN OUR LOAD RESEARCH PROGRAM, WE HAVE A CERTAIN SAMPLE DESIGN THAT'S. UM, THE SAMPLING THAT WE DO OF OUR CUSTOMERS FOR LOAD RESEARCH PURPOSES IS DESIGNED TO ACCOMPLISH CERTAIN THINGS, RIGHT? AND ONE OF THEM IS TO ACHIEVE A CERTAIN DEGREE OF ACCURACY AT A CERTAIN LEVEL OF ANALYSIS. THIS IS A MORE GRANULAR, DETAILED LEVEL OF ANALYSIS THAN THE LOAD, UH, RESEARCH PROGRAM WAS DESIGNED TO ACHIEVE. WHICH MEANS THAT IF WE WERE TO TAKE THE LOAD SAMPLING INFORMATION THAT WE DID FOR THE TEST HERE AND TRY TO APPLY THIS LEVEL OF GRANULARITY, IN OTHER WORDS, GOING INTO, UH, THE LOAD INFORMATION FOR CUSTOMERS IN EACH TIER FOR INSIDE VERSUS OUTSIDE CITY, IT'S LIKELY, AND MAYBE EVEN AN INEVITABLE THAT THE RESULTS WOULD NOT BE STATISTICALLY RELIABLE WOULD NOT BE STATISTICALLY SIGNIFICANT. UM, SO THAT'S ONE CAVEAT. ANOTHER ONE IS THAT, AND THIS MAY BE STATING THE OBVIOUS. THERE'S NOT REALLY ANY SUCH THING AS A CUSTOMER IN A TIER, RIGHT? BECAUSE CUSTOMERS JUMP TIERS THROUGHOUT THE YEAR AS THEIR USAGE CHANGES, UH, AND AS THE WEATHER CHANGES AND THINGS LIKE THAT. SO, YOU KNOW, TYPICALLY YOU WOULD THINK ABOUT LOW DATA BEING PERFORMED FOR, FOR A TEST HERE AND NOT ON A MONTHLY BASIS, BUT REALLY IN ORDER TO ANSWER THIS, WE'RE GOING TO HAVE, WE WOULD HAVE TO DO IT, UH, BY MONTH. AND, UH, YOU KNOW, A CUSTOMER IN TIER ONE COULD JUMP TO TIER THREE, UH, IN THE, IN AUGUST OR SOMETHING LIKE THAT. RIGHT? SO THAT'S ANOTHER, UM, CAVEAT, I GUESS, TO THE ANALYSIS, BUT GIVEN ALL THAT, IF SOMEONE WERE TO FILE A FORMAL REQUEST, THEN, UH, THAT, THAT WOULD GIVE US ENOUGH TIME TO BE ABLE TO PULL THAT TOGETHER. IF SOMEONE THINKS THAT WOULD STILL BE USEFUL, GIVEN THOSE CAVEATS. THANKS, BRIAN. AND I SHOULD HAVE STATED THIS AT THE OUTSET OR TAKEN THE OPPORTUNITY TO, UM, INTRODUCE THE FOLKS THAT WE HAVE HERE, UM, FROM AUSTIN ENERGY. SO I'LL JUST, UM, ALLOW THEM TO DO THAT. UM, STARTING ON MY LEFT. HELLO, I'M TIM HARVEY. I MANAGE THE CUSTOMER RENEWABLE SOLUTIONS TEAM. GOOD MORNING. I'M JOHN AND I'M THE, UH, RATES AND REGULATORY MANAGER FROSTED ENERGY. MY NAME IS GRANT RAYBAN AND WITH NEW GEN STRATEGIES AND SOLUTIONS, I'M THE CONSULTANT THAT WAS HIRED BY AUSTIN ENERGY TO ASSIST IN THIS RATE REVIEW. HI, I'M MONICA GONZALEZ. I'M THE PRINCIPAL ACCOUNTING MANAGER OVER CORPORATE ACCOUNTING, BRIAN MURPHY, SUPERVISOR OF RATES WITH AUSTIN ENERGY. OH, GREAT. THANKS EVERYONE. SORRY FOR NOT DOING THAT EARLIER. UM, OKAY, THEN LET'S MOVE ON TO THE SECOND QUESTION. UM, CAN YOU PROVIDE RESIDENTIAL INSIDE CITY BILL IMPACT DATA FOR SUMMER MONTHS AND WINTER MONTHS? UM, YEAH, SO THIS INFORMATION IS, IS NOT IN THE RAPE FILING PACKAGE, UH, THAT WAS MADE PUBLIC, UM, UH, IT, BUT, UH, THIS DATA CAN BE PROVIDED. UM, SO HERE AGAIN, IF THE, IF YOU WILL ADD THIS TO A FORMAL RFI, UH, WE CAN PUT TOGETHER THE INFORMATION AND RESPONSIVE TO THIS. ALL RIGHT, THANKS. UM, QUESTIONS THREE, A AND THREE B THEY'RE REALLY, THERE [00:10:01] WERE TWO, IT WAS A TWO-PART QUESTION AS FOR HOW MANY RESIDENTIAL CUSTOMERS WERE SUBJECT TO OUTAGE DURING A WINTER STORM YURI. AND THEN WHAT WAS THE AVERAGE DURATION OF THE OUTAGE? UM, THE CITY OF AUSTIN PREPARED AN AFTER ACTION REPORT THAT CONTAINS THE INFORMATION THAT WE HAVE ON THIS, THESE QUESTIONS. UM, AND WE'LL BE HAPPY TO PROVIDE A LINK THAT SHOWS YOU HOW TO ACCESS THAT INFORMATION. AND SO, UM, FOLLOWING THIS TECHNICAL CONFERENCE, I'LL SEND THAT OUT, ALONG WITH ANY OTHER FOLLOW-UP INFORMATION THAT WE HAVE TO PROVIDE THE NEXT PART OF QUESTION THREE, AS FOR HOW MANY SMALL COMMERCIAL AND LARGE COMMERCIAL CUSTOMERS WERE SUBJECT TO OUTAGE DURING WINTER STORM YURI. UM, JOHN, DO YOU WANNA ADDRESS THAT? UH, IT'S PRETTY MUCH THE SAME ANSWER AS, UH, AS WHAT THOMAS JUST PROVIDED. WE ONLY HAD A CHEMOED OF NUMBERS AND THE AFTER ACTION REPORT. WE DID NOT BREAK IT DOWN BY MY CLASSES AND THE SAME IS FOR THE DURATION INFORMATION. GOT IT. OKAY. THANKS. UH, QUESTION FOUR, UH, ASKED A, TO PROVIDE GROSS PLANT IN ACCUMULATED DEPRECIATION FOR AUSTIN, SHERIFF FAYETTE POWER PLANT MONICA. HI SHORT, WE'LL HAVE TO COMPILE THAT, BUT WE CAN GET THAT TO YOU. UH, QUESTION FIVE, UM, ASKED, UM, A TO PROVIDE STANDING IN THE JD POWERS, CUSTOMER SATISFACTION INDEX FOR RESIDENTIAL AND COMMERCIAL CUSTOMERS. UM, OUR CHALLENGE THERE IS THAT WE'RE NOT ABLE TO RELEASE THAT INFORMATION SPECIFIC STUDY DATA WITHOUT PRIOR AGREEMENTS FROM, UM, JD POWERS. UM, SO IF THERE'S, UM, MORE THAT WE NEED TO DISCUSS ON THAT, I WOULD JUST ASK THE ICA TO, TO REACH OUT TO ME AND WE CAN TALK ABOUT, BUT THAT'S OUR, UM, RESTRAINT RIGHT NOW. UM, QUESTION SIX REFERS TO ICA TC ONE DASH 14 B AND ASK, DOES THIS INDICATE THAT AES PAYMENT FOR THREE 11 SERVICES, A DEPARTMENTAL ALLOCATION, APPROXIMATELY 686,000 PLUS 25% OF THE TOTAL COST, APPROXIMATELY 3.1 MILLION. UM, JERRY, THE SECOND PART OF THAT QUESTION, WHICH JERRY WILL ALSO ADDRESS AS TO, UM, TO EXPLAIN WHAT THE TWENTY-FIVE PERCENT BACKUP VALUE IS AND HOW THAT VALUE WAS DETERMINED. THERE WE GO. JERRY GALVAN, VICE PRESIDENT CUSTOMER CARE SERVICES. YES. THE ANSWER TO SIX A IS YES. UM, IN THE, UM, THE PIECE ON SIX B EXPLAINED THE BACK OF VALUE. THAT'S HOW, UM, WE STRUCTURED, UM, 3, 1, 1 IN THE UTILITY CONTEXT CENTER. UH, THE UTILITY CONTEXT CENTER NEEDS 24 HOURS OF COVERAGE FOR OUTAGE CALL SUPPORT, UH, AUSTIN THREE, ONE, ONE IT'S OPEN TWENTY THREE HUNDRED AND SIXTY FIVE DAYS A YEAR, 24 HOURS A DAY. AS A RESULT OF AUSTIN, 3, 1, 1 BEING OPEN FOR US AFTER HOURS. OUR UTILITY CONTACT CENTER CLOSEST AT 9:00 PM EVERY SINGLE DAY AND REOPENS AT 7:00 AM. SO 10 HOURS OF THE 24 HOUR PERIOD 3 1, 1 IS THE OUTAGE, UM, CALL CENTER. UH, THAT'S ALSO TRUE WHEN WE HAVE A STORM AT THREE ONE FUNCTIONS AS A, UH, OVERFLOW CALL CENTER FOR THE UTILITY CONTACT CENTER. ALL RIGHT, THANKS, JERRY. UM, THEN MOVING ON TO QUESTION SEVEN, IT REFERS TO ICA TC ONE DASH TWO, DID THE, COVID A RATE REDUCTION FOR THE TOP TWO TIERS REQUIRE ANY NORMALIZATION ADJUSTMENTS TO CURRENT REVENUES IN THE COST OF SERVICE. AND THEN THE SECOND PART OF THAT QUESTION ASKS WITH RESPECT TO THE ATTACHMENT TO TC ONE DASH TWO, CONFIRMED THAT THE MONTH OF OCTOBER SHOWN IN THOSE TABLES IS 2020. UM, BRIAN. YEAH, THE ANSWER TO THE FIRST PART IS NO, NO ADJUSTMENTS ARE REQUIRED. THE, THE, UM, THE WAY THAT THE PRESENT REVENUES ARE CALCULATED IN THE COST OF SERVICE MODEL TREATS ALL BILLING UNITS THE SAME AS FAR AS THE, UM, THE CURRENT RATES THAT GET APPLIED. SO THE DISCOUNTED RATES THAT WERE SHORTLY IN EFFECT, UH, HAD NO IMPACT ON THE, OF THE CALCULATIONS OF REVENUES AND THE COST OF SERVICE STUDY. THE SECOND PART CONFIRMED. YES. UH, THAT'S OCTOBER, 2020. ALL RIGHT. THANK YOU. AND THEN, UM, QUESTION EIGHT. I THINK LENNON HAD A FOLLOW-UP THOMAS. OH, I'M SORRY. I DIDN'T SEE. THAT'S ACTUALLY ONE OF THE QUESTIONS I ASKED YOU. SURE. GO AHEAD. AND IF YOU, IF YOU WOULD COME TO THE TABLE [00:15:05] AGAIN, THE ONE ON THE RIGHT IT'LL TURN RED. ALRIGHT, THANK YOU. SURE. ALRIGHT. UH, IN LAST YEAR'S RATE KATE ON THAT LAST YEAR, SORRY, GOD, THAT'S AWFUL. NOT LAST YEAR, THE LAST RATE CASE 2016. THAT'S RIGHT. AND THE LAST RATE CASE, UH, Y'ALL Y'ALL MEANING AUSTIN ENERGY DID NOT OFFSET THE BASE COST WITH THE CAP REVENUES FROM THE DISCOUNT. AND THAT'S KIND OF WHAT CLARENCE IS ASKING IN THIS QUESTION WITH THE COVID DISCOUNT. SO, UM, MY QUESTION WAS, UH, AND IN YOUR REBUTTAL, UH, MR. DOMBROSKI AGREED THAT THOSE REVENUES SHOULD HAVE BEEN INCLUDED AS A REVENUE OFFSET TO THE BASE RATE COST. SO IT ADDED, I THINK, SIX OR $7 MILLION TO THE, TO THE REVENUES, UH, AND ACTUALLY INCREASED THE DECREASE. SO THE QUESTION I HAVE IS, UH, IS, IS THAT WHAT YOU WERE DOING WITH THE COVID DISCOUNT? YOU WERE JUST TAKING THE REVENUES OR THE CAP REVENUES. I'M JUST, I'M NOT CLEAR ON WHAT YOUR ANSWER WAS. SO I'LL TRY TO, UH, ANSWER THE, UM, THE QUESTION ABOUT THE TREATMENT OF THE CAP. I WAS NOT AROUND IN 2016 AND I HAVEN'T REALLY REVIEWED THE WAY THAT STUDY WAS UNDER DETAILED. SO I GUESS GRANT CAN FOLLOW UP WHAT I, WHATEVER I, I CAN SAY ABOUT THAT. UM, AS FAR AS THE, THE COVID RATE IMPACT, UM, YOU KNOW, LIKE I WAS SAYING BEFORE, IT DIDN'T HAVE ANY EFFECT ON, UH, OUR ANALYSIS IN THIS CASE, BECAUSE IT DOESN'T AFFECT THE CALCULATION OF THE PRESENT REVENUES TO SHOW US WHERE WE ARE NOW THAT WE USE TO COMPARE AGAINST COSTS TO SAY, YOU KNOW, THERE'S THE GAP, UH, THERE'S A REVENUE DEFICIENCY, AND THEN WE HAVE TO INCREASE RATES TO, TO FILL THE GAP, RIGHT. UM, AS FAR AS CAP, THE WAY THAT WE'VE CONSTRUCTED THE COST STUDY THIS TIME IS A LITTLE BIT DIFFERENT. THE IMPACTS OF CAP HAVE BEEN COMPLETELY REMOVED FROM THE COST STUDY SO THAT THE CAP PROGRAM IS TREATED ENTIRELY OUTSIDE OF THE BASE RATE COST OF SERVICE JUST IN THE CBC. RIGHT. WELL, I, I GUESS I'LL LET GRANT SPEAK TO HOW IT WAS DONE, BUT I GUESS MAYBE THERE WAS AN ERROR ON HOW THEY IMPLEMENTED IT LAST TIME, ACTUALLY, WHAT THEY SAID, WHICH THEY AGREED. I SAID, THE WHOLE PURPOSE OF CAP REVENUES IS TO USE, TO REIMBURSE AUSTIN ENERGY FOR BASE RATE COSTS THAT THEY WOULD OTHERWISE NOT RECOVER, BUT FOR THE AMOUNT TO PAY FOR THE CUSTOMER CHARGE WAIVER AND THE RATE DISCOUNT AND AUSTIN ENERGY AGREED WITH THAT IN REBUTTAL. AND SO YOU MADE THAT ADJUSTMENT. SO, BUT THE VERY FIRST TIME YOU LAID OUT THE CASE, YOU KEPT ARGUING THAT CAP IS A SEPARATE, UH, CASE. AND NONE OF THAT SHOULD BE INSIDE THE RATES UNTIL WE POINTED OUT. WELL, THE WHOLE PURPOSE OF CAP IS TO GIVE MONEY TO AUSTIN ENERGY, TO REIMBURSE THEM FOR THE DISCOUNT AND THE WAIVER. SO IT, IT DOES NOT MAKE SENSE TO NOT RECOGNIZE THAT AS A REVENUE SOURCE. SO I'M THROUGH FAIR ENOUGH. SO, UH, YEAH, I, I DO REMEMBER, WELL, UH, THE, THE ISSUE THAT YOU'RE REFERRING TO IN THE LAST RATE REVIEW, UH, WE HAVE, UH, APPROACH THE ACCOUNTING FOR, UH, THE CAP, UH, DISCOUNT AND REVENUES, UH, DIFFERENTLY IN THIS RATE REVIEW. SO THAT TO MAKE IT ABUNDANTLY CLEAR AND, UH, BE ABLE TO INTERNALLY BE SURE, AND ALSO BE ABLE TO REPRESENT TO EXTERNAL STAKEHOLDERS THAT THAT IS ACCOUNTED FOR APPROPRIATELY. THERE IS A, UH, A NEW WORK PAPER THAT IS IN THE RATE VOLUME PACKAGE THAT DIDN'T EXIST LAST TIME THAT, THAT QUANTIFIES AND SHOWS THE CAP DISCOUNT, UH, AND ACCOUNTING FOR IT. UM, AND WE'RE CONFIDENT THAT IS, UH, TREATED APPROPRIATELY IN THIS RATE. OKAY. AND WHEN YOU SAY TREATED APPROPRIATELY, HOW WAS IT TREATED IN THIS RIGHT CASE? WAS IT USED TO OFFSET BASE RATE COSTS? DID YOU ADD THEM IN AS REVENUES AVAILABLE IN THIS RATE CASE? SO IN THE DEVELOPMENT OF THE PROOF OF REVENUE, UH, WE, WE DID NOT ASSUME THE DISCOUNT WHEN DEVELOPING THE REVENUES FROM CAP CUSTOMERS. SO, BECAUSE I, YOU KNOW, IN A PRIOR VERSION, UH, IN 2016, WHEN WE WERE DEVELOPING THE PROOF OF REVENUE, WE RIGHTLY RECOGNIZE THAT, OH, THESE CAP CUSTOMERS ARE PAYING DIFFERENT RATES [00:20:01] THAN WHAT OTHER RESIDENTIAL CUSTOMERS ARE PAYING BECAUSE OF THE DISCOUNTS. UM, IN THIS, IN THIS VERSION OF THE ANALYSIS, WE HAVE SIMPLY SHOWN IN THE PROOF OF REVENUE THAT THOSE CUSTOMERS ARE PAYING THE FULL REGULAR RATES, RECOGNIZING THAT SOME OF THAT REVENUE IS COMING FROM THE INDIVIDUAL CAP CUSTOMERS THEMSELVES. THE REST OF THAT REVENUE IS COMING THROUGH THE CAP PASS THROUGH AS A MEANS OF FILLING THAT HOLE. SO IT'S CONSISTENT WITH WHAT MR. DOMBROSKI SAID, AND HIS REBUTTAL IN THE LAST RATE CASE THAT YOU DID ACKNOWLEDGE THOSE REVENUES, AND THAT'S HOW YOU DID IT. RIGHT? AND, AND I DIDN'T REVIEW, UH, MR. DOMBROSKI SKIS, A TESTIMONY OR A REBUTTAL, BUT PRIOR TO COMING HERE, SO I CAN'T BE POSITIVE, BUT WHAT IT SAID, BUT WE ARE CONFIDENT THAT IT IS BEING TREATED CONSISTENT WITH THE ULTIMATE, UM, POSITION OF AUSTIN ENERGY ON THAT ISSUE. AND THE LAST RATE REVIEW SOUNDS GREAT. NOW I DID ASK FOR YOU TO POINT OUT IN THE RIGHT FILING PACKAGE. AND IF, IF YOU, AND I'M NOT ASKING YOU TO DO IT NOW, CAUSE I KNOW Y'ALL HAVE GOT OTHER THINGS TO DO, AND I'LL BE QUIET IN A SECOND. IF YOU COULD GIVE ME A FOLLOW-UP ON THAT BECAUSE I WAS HAVING A HARD TIME TRYING TO FIND IT, AND I'M NOT AN EXPERT. SO I WILL TELL YOU THAT THERE IS A ICA QUESTION ON THIS ISSUE WHERE BY, UH, THE RESPONSE WILL INCLUDE REFERENCE TO THE WORK PAPER THAT IS AT ISSUE HERE, OR MAYBE IT'S NOT ICA, SOMEBODY ASKS A QUESTION THAT IT'S RELATED TO THIS. UM, AND SO, UH, THAT RESPONSE WILL BE, YOU KNOW, PRESUMABLY HELPFUL TO YOU IN FINDING THAT PARTICULAR WORKSHEET. THANK YOU SO MUCH. THANK YOU FOR YOUR TIME. EXCELLENT NETTA IF YOU KNOW, IT'S PROBABLY OKAY. ALL RIGHT. LET'S GO BACK TO THE ICA QUESTIONS. UM, WE WERE ON QUESTIONS EIGHT, WHICH IS A TWO PART QUESTION. THE FIRST PART ASKS, WHAT IS THE PRICE ELASTICITY OF DEMAND FOR RESIDENTIAL CUSTOMERS USED IN THE WEATHER MODEL? AND THEN A SECOND PART ASKS FOR A PLANNING PURPOSES. WHAT IS THE LONG RUN PRICE ELASTICITY OF DEMAND PER RESIDENTIAL CONSUMPTION? UM, BRIAN, ALL RIGHT. SO THIS IS ANOTHER, A SHORT ANSWER AND LONG ANSWER, UM, SITUATION. THE SHORT ANSWER IS THAT WE DO NOT USE ANY SINGLE VALUE FOR PRICE ELASTICITY OF DEMAND IN EITHER THE WEATHER MODEL OR FOR PLANNING PURPOSES. HOWEVER, THERE ARE PRE PRICE ELASTICITIES THAT ARE REFLECTED IN OUR WEATHER NORMALIZATION METHODOLOGY AND, UH, IN THE, IN THE FORECASTING AND PLANNING THAT WE DO, THOSE ARE NOT A SINGLE POINT OF PRICE, ELASTICITY OF DEMAND, BUT RATHER, UM, A LONG LIST OF PRICE ELASTICITIES THAT ARE CONNECTED TO SPECIFIC END USES FOR POWER. OKAY. SO BOTH THE WEATHER MODEL AND ALSO THE FORECASTING MODEL THAT WE USE USE A STATISTICALLY ADJUSTED TO END USE MODELING TOOL THAT'S DEVELOPED BY THE EIA. OKAY. AND IF YOU LOOK HERE BEHIND ME, YOU CAN SEE ALL OF THE DIFFERENT PRICE ELASTICITIES FOR SPECIFIC END USES THAT ARE INCLUDED, OR THEY'RE AN INTEGRAL PART OF THAT, UM, INDUSTRY STANDARD MODEL THAT WE USE AND USE, LIKE I SAID, STATISTICALLY DOES ADJUST TO DENT USED MODEL. UM, IF YOU, LIKE, I CAN DETAIL SOME OF THE END USES THAT HAVE PRICE ELASTICITIES AND THOSE INCLUDE SPACE HEATING FANS, COOLING, COOKING, REFRIGERATORS, FREEZERS, DISHWASHERS, CLOTHES, WASHERS, CLOTHES, DRYERS, TVS, LIGHTING, AND FURNACES. SO, UM, IT'S A LITTLE BIT OF A, I GUESS, NUANCED ANSWER. ALRIGHT, THANKS, BRIAN, SIR. MR. ROBBINS, UH, COULD YOU PLEASE, UH, EMAIL ME OR US THE LINK TO WHAT YOU'VE JUST DISCLOSED? I THINK WE CAN, I'LL HAVE TO CHECK AND SEE IF IT'S SOMETHING THAT, UM, I'M PRETTY SURE. I, I, I'M PRETTY SURE IT'S PUBLIC. YES. I DO HAVE A DOCUMENT. I'LL CHECK. I'LL VERIFY IT TO BE SURE THAT WE CAN, THAT WE CAN PRODUCE. THANK YOU. AND JUST SO WE'RE CLEAR JUST AS WE DID, UH, FOLLOWING THE FIRST ANOKA CONFERENCE, UH, ANYTHING THAT WE, UM, INDICATE TODAY THAT WE WILL FOLLOW UP WITH, WE WILL SUBMIT THOSE TO THE RA AND POST THEM ON THE COURT'S WEBSITE, SO EVERYONE WILL GET TO SEE IT. UM, ALL RIGHT. UM, THOMAS, STEVE, YES, GO AHEAD. KAUFMAN. I, [00:25:01] YOU KNOW, FOR THE ICA, I JUST WANTED TO, I WAS, I WAS GOING TO ASK THAT CLARIFICATION. I ASSUME YOU GUYS ARE GOING TO PUT SOMETHING IN LIGHTING AND POSTED ON THE INTERCHANGE, SHOWING THE, UH, YOUR RESPONSES TO THESE QUESTIONS LATER, INCLUDING KIND OF THE FOLLOWUPS. AND, AND, AND THE REASON I ASK IS I, I THINK MR. MURPHY SAID, UH, IN RESPONSE TO NUMBER TWO, THAT, UM, HE SAYS, IF YOU PUT IT INTO AN RFI, SO I JUST WANTED TO MAKE SURE, DO WE NEED TO SUBMIT THESE AS RFAS OR ARE THESE GOING TO BE KIND OF TREATED AS RFIDS AND YOU'RE RESPONDING TO THEM PUBLICLY? OR IS THERE ANY NUGGET JUST INDICATE IF IT IS YOU, UH, W WHERE IT IS YOU THINK THAT WE NEED TO DO ADDITIONAL REQUESTS OTHER THAN WHAT WE'VE ALREADY SUBMITTED? WELL, ACTUALLY, WHAT I WOULD ASK OF YOU IS, UM, IF THERE'S, UM, SOMETHING THAT YOU BELIEVE, UM, HAS NOT BEEN ANSWERED FULLY, OR THAT, UM, YOU BELIEVE THAT WE INDICATED THAT WE WOULD FOLLOW UP, IF YOU'LL JUST SEND ME AN EMAIL KIND OF LISTING THOSE, WHAT YOU THINK IS OUTSTANDING. UM, THEN WE'LL MOVE FORWARD. I TIC DID THAT LAST TIME, AND IT WAS VERY HELPFUL, JUST SO WE CAN COMPARE OUR NOTES TO TOO, THAT THERE'S. IS THERE GOING TO BE A WRITTEN RESPONSE TO THESE QUESTIONS? WELL, WE DID, WE WERE NOT PLANNING ON DOING THAT, DOING THAT. WE WERE PLANNING SIMPLY TO PUT IN WRITING ANY INFORMATION THAT WE, UM, STATE THAT WE WOULD FOLLOW UP ON. OTHERWISE WE'RE EXPECTING THAT YOU ALL ARE DOING KIND OF LIKE WE AREN'T TAKING NOTES, BUT IF, AGAIN, IF YOU FEEL LIKE YOU NEED THAT IN WRITING, I WAS NERVOUS ABOUT THE 50 QUESTION LIMIT AND TRYING TO BE SURE WHAT'S, WHAT'S AN RFI AND WHAT WE CAN GET ANSWERED. THAT'S NOT UNDERSTOOD. UM, OKAY. CAN I TELL HIM TO JUST ADD TO THAT REAL QUICK, MR. KAUFFMAN, THAT HOPEFULLY YOU CAN HEAR ME THE, UH, THE, SORT OF THE SPECIAL THING ABOUT WHAT YOU WERE JUST ASKING ABOUT, UH, AND QUESTION NUMBER ONE, IS THAT HAVING CHECKED WITH, UH, YOU KNOW, WITH THE TEAM, THAT'S GOING TO REQUIRE A PRETTY SIGNIFICANT AMOUNT OF WORK FOR US TO DO. IF YOU GUYS DECIDE THAT IT'S GOING TO BE USEFUL FOR YOU, AND WE'RE GOING TO NEED, YOU KNOW, A PRETTY GOOD AMOUNT OF TIME TO DO THAT. SO IT'S SORT OF A SPECIAL CASE. UM, I THINK SO YOU MIGHT, YOU, YOU MIGHT NEED SOMETHING, UH, AN RFI AND RIDING ON NUMBER ONE, NUMBER TWO, I BELIEVE. OKAY. ONE MOMENT. ALL RIGHT, THEN, UM, MOVING FORWARD, UM, QUESTION NINE, ALSO A TWO-PART QUESTION, UM, THAT REFERS TO ICA ON ONE DASH THREE. THIS ANSWER INDICATES THAT A 20 YEAR HISTORICAL PERIOD WAS USED FOR FORMAL WEATHER AND THE WEATHER MODEL HAS COMPARED THE WEATHER NORMALIZATION RESULT OF A 10 YEAR HISTORICAL PERIOD IS USED INSTEAD OF 20 YEARS FOR NORMAL. AND THEN THE SECOND PART SAYS, WHAT IS THE COMPARISON OF TOTAL CDS? AND HDDS FOR A TEN-YEAR NORMAL ANNUAL PERIOD VERSUS THE 20 YEAR NORMAL PERIOD USED BY AA? UH, BRIAN. OKAY. SO THE ANSWER TO THE FIRST PART IS THAT NO, WE DID NOT DO THIS COMPARISON FOR THE TEST YEAR FISCAL YEAR, 2021, HOWEVER, FIVE YEARS AGO, WE SWITCHED FROM USING A, UH, 10 YEAR TWO TO A 20 YEAR, WHETHER NORMAL PERIOD AND BEHIND ME, YOU CAN SEE THE RESULTS, UH, SORRY, I'M GOING TO HAVE TO TURN AROUND. SO TO THE FAR LEFT THERE IN THE GREEN, YOU CAN SEE THE 20 YEAR PERIOD COVERING 1998 THROUGH 2017, AND THEN IN YELLOW, THE 10 YEAR PERIOD, 2006 TO 2015. SO THAT DOES THE MOST RECENT ANALYSIS WE HAVE. AND OF COURSE IT'S NOT THE SAME YEARS. AND THEN ON THE FAR RIGHT, YOU CAN SEE THE, THE 20 YEAR, WHETHER NORMAL PERIOD THAT WAS USED FOR THIS CASE. NOW, IF YOU TAKE A LOOK AT THE HDDS AND THE CDS YOU'LL OBSERVE THAT THERE'S REALLY NOT THAT MUCH DIFFERENCE, UM, BETWEEN THE USE OF A 10 YEAR AND A 20 YEAR PERIOD. UM, WHAT ALSO NOTE THAT THE CDS ARE MUCH MORE IMPACTFUL THAN THE HDDS. SO THAT'S PROBABLY WHAT YOU WANT TO FOCUS ON. UM, THE OTHER THING TO SAY HERE IS THAT THERE'S NO SUCH THING AS AN APPLES TO APPLES COMPARISON OF, OF, UH, A 20 YEAR TIME PERIOD AND A 10 YEAR TIME PERIOD IN PART, BECAUSE, UH, AS I UNDERSTAND IT, THE METER CYCLES ARE ALWAYS GOING [00:30:01] TO BE DIFFERENT FROM ONE YEAR TO THE NEXT. SO FOR EXAMPLE, UM, THE OCTOBERS THAT ARE INCLUDED IN THE 20 YEAR ANALYSIS COULD COVER DIFFERENT DAYS. THEY'RE, THEY'RE DIFFERENT OCTOBERS. THEY DON'T REPRESENT THE SAME DAYS. YOU KNOW, ONE COULD BE, UH, YOU KNOW, USAGE THAT OCCURRED FROM AUGUST 28TH TO SEPTEMBER 27TH. AND ANOTHER ONE COULD BE AUGUST 25TH THROUGH SEPTEMBER 26TH, AND ONE INCLUDES 34 DAYS. AND THE OTHER INCLUDES 28 DAYS. SO IT'S JUST, I GUESS, A LITTLE BIT OF A, A WARNING THAT IT'S, IT'S ESSENTIALLY AN, A POSSIBILITY TO GET TO A DIRECT COMPARISON OF A, OF A 10 YEAR TO 20 YEAR BASED ON THE, UM, THE TECHNICAL REALITIES OF A METER CYCLES. SO THAT'S, UH, THAT I ANSWERED BOTH OF THEM. OKAY. ALL RIGHT. AND, UH, WOULD YOU ALSO ADDRESS 10, 10 S UH, PROVIDE THE WEATHER ADJUSTMENT, UH, KWH IN REVENUE BY MONTH COMPARED TO THE ACTUAL REVENUE BY MONTH? OKAY. UH, SO WE DO NOT HAVE A COMPARISON OF REVENUES BY MONTH, BUT THE COMPARISON OF KWH IS BY MONTH, WAS ALREADY PROVIDED IN RESPONSE TO ICA ONE DASH ONE, THE FORMAL, THE FIRST ITEM, I GUESS, THAT WAS FILED BY THE ICA. SO YOU CAN NOT, I GUESS, REFER TO THE CLERK'S WEBSITE FOR THAT. ALRIGHT. AND THEN QUESTION 11 REFERS TO US CA ONE DASH FIVE, EXPLAIN WHETHER AN ADJUSTMENT WAS MADE TO CURRENT REVENUE TO EXCLUDE THE IMPACT OF THE $10 CREDIT FOR WINTER STORM URI, BRIAN, UH, NO, ALL MONTHS AND KWH HAS RETREATED THE SAME AND THE CALCULATIONS OF PRESENT REVENUES. SO THERE WERE, THERE WAS NO NEED TO ADD BACK ANY, UH, REVENUES FOR, FOR THE $10 CREDIT, UH, BECAUSE IT WAS NEVER, UH, IT WAS NEVER APPLIED IN THE CALCULATIONS THAT WE USE, UH, IN THE, IN THE COST STUDY. SO, UM, JUST, I GUESS FOR THE UNINITIATED, WE FOLLOW THE W WHEN WE CALCULATE PRESENT REVENUES AND THE COST OF SERVICE, WE DO IT SORT OF THE WAY THAT MOST UTILITIES DO IT, WHICH IS THAT YOU TAKE FULLY ADJUSTED BILLING UNITS FOR THE TEST HERE, YOU KNOW, ADJUSTED FOR YEAR CUSTOMER COUNTS AND CUSTOMER ANNUALIZATION AND WEATHER NORMALIZATION, OR ANY OTHER APPROPRIATE ADJUSTMENTS. AND ONCE YOU'VE DETERMINED WHAT THOSE ADJUSTED BILLING UNITS ARE, YOU JUST APPLY THEM TO THE CURRENT RATES AND THAT SORT OF, SORT OF LIKE A NORMALIZED, UH, DETERMINATION OF PRESENT REVENUES AND IT'S UNAFFECTED BY ANY, YOU KNOW, DISCOUNTS OR ANY SPECIAL THINGS THAT HAPPEN THROUGHOUT THE YEAR. THERE'S JUST NO WAY FOR THOSE THINGS TO CREEP INTO THE CALCULATION. SO THERE'S NO ADJUSTMENT THAT NEEDS TO BE MADE FOR, FOR THE SORT OF THING. ALRIGHT, THANKS. UM, NUMBER 12, PLEASE PROVIDE ALL STUDIES PERFORMED. I THINK IT SHOULD BE, OR RELIED UPON BY AA FOR SECTION 7.2 0.3 IMPACT ON VULNERABLE CUSTOMERS AND THE BASE RATE FILING PACKAGE, BRIAN, UH, WELL INSIDE THE NARRATIVE, UH, IF YOU FOLLOW IT, YOU CAN SEE, YOU KNOW, THAT WE'VE, UM, ANALYZED THE USAGE, THE HISTORICAL USAGE FOR KAPPA NON-CASH CUSTOMERS BROKEN OUT BY TIERS, BROKEN OUT OVERALL TRENDING OVER TIME. UM, SO THOSE ANALYSES ARE ALREADY INCLUDED IN THE, UH, THE NARRATIVE. I'M NOT SURE THERE'S MUCH MORE THAT WE HAVE, IF ANYTHING, THAT, UM, THAT, THAT ISN'T ALREADY REFERENCED IN THE NARRATIVE. AND, UH, THE ANALYSIS OF CAP VERSUS NON CAP IS THE EXTENT OF THE, YOU KNOW, UH, STUDIES THAT WE'VE DONE ON THE IMPACT ON VULNERABLE CUSTOMERS, WHO, YOU KNOW, USING CAP AS A PROXY FOR VULNERABLE CUSTOMERS AS A WHOLE. ALL RIGHT, THANK YOU. UM, QUESTION 13, WITH RESPECT TO ENERGY EFFICIENCY RELATED EXPENSES, RECLASSIFIED TO PRODUCTION CONFIRMED THAT THESE EXPENSES ARE REMOVE FROM THE BASE RATE COST OF SERVICE GRANT CONFIRMED NUMBER 14, UH, WHAT FUNCTIONALIZATION AND CLASSIFICATION FACTORS THAT ARE USED TO DISTRIBUTE GENERAL FUND TRANSFER GRANT. UM, SO THE, THE RIVER REQUIREMENT, UH, UM, THE COST SERVICE ANALYSIS USES A REVENUE REQUIREMENT AS THE MEANS TO FUNCTIONALIZE THE GENERAL FUND TRANSFER TO, TO PRODUCTION, [00:35:01] TRANSMISSION, DISTRIBUTION, AND CUSTOMER, UH, FUNCTIONS, UM, AND THEREAFTER, UM, FOR PRODUCTION AND FOR, UM, TRANSMISSION, UH, THE, THE CLASSIFICATION OF THOSE THAT COSTS IS TO DEMAND. UM, AND FOR DISPARATE DISTRIBUTION FUNCTION AND CUSTOMER FUNCTION HERE, AGAIN, REVENUE REQUIREMENT IS THE MEANS OF, OF CLASSIFYING THOSE COSTS. UM, I WILL NOTE THAT, UM, THE GENERAL FUND TRANSFER ITSELF IS, UH, BASED UPON REVENUES, EXCLUDING, UH, THE PSA, THE POWER SUPPLY ADJUSTMENT COSTS. AND SO, UM, IT IS APPROPRIATE TO NOT ALLOCATE A PORTION OF THE GFT COST, UM, TO POWER SUPPLY COSTS FOR THAT REASON. ALRIGHT, THANKS. UM, QUESTION 15 IS A FOUR-PART QUESTION. UM, FIRST PART IS WHAT IS THE BASIS FOR THE CLASSIFICATION OF CONTRIBUTION NATIVE CONSTRUCTION OR SIACK GRANT? YEAH. AND, UH, WHILE I'M ANSWERING THIS, UH, GARY, IF YOU CAN PULL UP A WORK PAPER, SEE THREE, FIVE SO, UH, SO THIS IS A WORK PAPER, UH, SHOWS YOU THE, THE CONTRIBUTIONS IN A, TO CONSTRUCTION, WHICH I MAY REFER TO AS CELIAC. UM, AND IT, THE NATURE OF THE CONTRIBUTION, UH, IS USED TO DERIVE A FUNCTIONALIZATION OF THAT, UH, TO PRODUCTION, TRANSMISSION DISTRIBUTION CUSTOMER. UM, THE, THE CELIAC IN THE, IN THE, IN THE REVENUE REQUIREMENT, UH, DEVELOPED, UH, SERVES AS AN, A, AN OFFSET, UH, TO THE INTERNALLY GENERATED INTERNALLY GENERATED FUNDS FOR CONSTRUCTION. SO THE CLASSIFICATION OF CA MATCHES THE CLASSIFICATION OF INTERNALLY GENERATED FUNDS FOR CONSUMPTION, FOR, UH, CONSTRUCTION, UM, IN PARTICULAR, UM, IT'S, YOU KNOW, BASED ON DEMAND FOR PRODUCTION OR TRANSMISSION, AND THEN DISTRIBUTION IS THE MEANS OF, UH, COST OF BUYING THAT COST AND DISTRIBUTION AND CUSTOMER. ALL RIGHT. UM, THEN, UH, THE SECOND PART DOES THE CLASSIFICATION TRACK A'S RECORDS REGARDING THE TYPES OF FACILITIES FOR WHICH A DEVELOPER CONTRIBUTION WAS MADE. AND THE NEXT PART, PLEASE EXPLAIN HOW DEVELOPERS CONTRIBUTIONS ARE USED TO REDUCE PLANT COSTS AND THE COST OF SERVICE STUDY GRANT. SURE. SO, UH, NO, AS, AS, AS MENTIONED IN MY PREVIOUS ANSWER, UH, THE, THE, THE CELIAC, UM, YOU KNOW, LINES UP WITH, AS AN OFFSET TO INTERNALLY GENERATED FUNDS FOR CONSTRUCTION. UM, AND IF YOU WILL GO TO WORKPAPERS C 3, 3, 1, THIS WORK PAPER SHOWS HOW THE CELIAC ACTS AS A FUNDING SOURCE, REDUCING THE AMOUNT OF FUNDING NEEDED, UH, TO PAY FOR AUSTIN ENERGY'S, UH, CAPITAL, UH, CONSTRUCTION NEEDS. GOT IT. UM, AND THEN THE FINAL PART OF THAT QUESTION IS, IS THE DEVELOPER CONTRIBUTION PRIMARILY LIMITED TO SERVICES IN METER, OR DOES IT INCLUDE PAYMENT FOR ADDITIONAL LOAD PLACED ON UPSTREAM FACILITIES, SUCH AS CONDUCTORS, FEEDERS, TRANSFORMERS, SUBSTATIONS? UM, I BELIEVE ORIGINALLY ELTON RICHARDS WAS, UM, SET TO RESPOND TO THIS, BUT I DON'T BELIEVE HE'S HERE. UM, UNLESS SOMEONE HERE AT THE TABLE FEELS COMFORTABLE ADDRESSING IT. I WOULD ASK THAT WE FOLLOW UP THOMAS. I HATE TO INTERRUPT. I THINK MR. ROBBINS MIGHT HAVE HAD A FOLLOW THROUGH TO THE PRIOR ITEM. OH, I'M SORRY. UM, YES, PAUL, PLEASE COME FORWARD. OH, I WOULD HAVE SAID SOMETHING EVENTUALLY. UM, I, THE SUBJECT OF CX CONTRIBUTIONS, UH, SEEMS TO BE THE QUESTION OF THE HOUR, AND I AM JUST TRYING TO SET IN MY MIND IF THE WORKSHEETS THAT YOU HAVE SHOW A 100% MATCH, UH, BETWEEN CUSTOMER CONTRIBUTIONS AND SEE ACNE NEEDS, OR IF THERE'S A DIFFERENCE, [00:40:01] IS AUSTIN ENERGY COLLECTING 100% OF CELIAC FROM CUSTOMERS? THERE WE GO. UH, YES, THEY ARE. UH, I BELIEVE THERE MAY. MY MEMORY IS THAT THERE MAY BE AN EXCEPTION FOR SOME LOW INCOME ASSISTANCE ASSISTANT OR SOME DEVELOPMENTS THAT INCLUDE A SHARE OF LOW INCOME. UH, SO, UH, BUT IN GENERAL, YES, WE ARE. OKAY. IS IT POSSIBLE THAT THE DEFINITION OF CELIAC COULD BE, UH, UM, DEBATED, UH, RESPECTFULLY AMONGST DIFFERING POINTS OF VIEW? I IMAGINE SO. I MEAN, I'M NOT A HUNDRED PERCENT SURE WHAT THE W W WHAT, WHAT YOU'RE ALLUDING TO, AND PERHAPS I'M THE ONLY ONE THAT'S NOT FOLLOWING ALONG, BUT COULD YOU PROVIDE A SPECIFIC EXAMPLE OR, UM, WELL, I CAN'T PROVIDE A SPECIFIC EXAMPLE BECAUSE I DON'T SEE THE ORDERS AS THEY COME IN, BUT THERE'S BEEN A, THERE'S BEEN A SUGGESTION THAT AUSTIN COULD ELIMINATE PART OF THE RATE INCREASE BY INCREASING CELIAC. AND I'M WONDERING HOW THAT COULD BE THE CASE, IF EVER WHAT YOU'RE SAYING IS CORRECT. I, I WOULD GENERALLY AGREE WITH THAT. I MEAN, UH, UNLESS WE WERE GOING TO HAVE A SURCHARGE. OKAY. YEAH, YEAH. PAULA, I THINK YOUR CONCERN IS THAT YOU OR OTHERS MAY BE USING A DIFFERENT DEFINITION OF SIADH THAN WHAT OFTEN ENERGY MIGHT BE USING. SO WHEN THEY SAY, YES, WE'RE COLLECTING A HUNDRED PERCENT UNDER YOUR DEFINITION, PERHAPS THEY'RE NOT. AND SO MY RESPONSE TO YOU IS, UM, THAT POLICY IS IN WRITING AND WE PROVIDE THAT IF YOU DON'T HAVE ACCESS TO IT. SO, SO YOU CAN, UM, COMPARE, UM, THAT POLICY TO WHAT YOUR UNDERSTANDING OR DEFINITION IS OR SHOULD BE. OH, I WAS ACTUALLY AT COUNCIL THE DAY, THIS WAS DECIDED. SO I UNDERSTAND THE INTENT OF THE POLICY, UH, AND I'M NOT MAKING ANY ALLEGATIONS OF BAD FAITH. I'M JUST WONDERING IF THERE ARE DIFFERING DEFINITIONS, THAT'S ALL. AND INDEED, THAT'S, THAT'S THE PURPOSE OF MY RESPONSE IS TO TELL YOU THAT THAT POLICY IS IN WRITING. AND SO YOU CAN SEE IT. JOHN INDICATED THAT THERE AE IS FOLLOWING THAT POLICY AND COLLECTING A HUNDRED PERCENT WELL WITH THE NOTED EXCEPTIONS FOR LOW-INCOME, UM, THAT HE MENTIONED, BUT, UM, THAT WOULD ALLOW YOU TO KIND OF DO THAT SIDE BY SIDE COMPARISON, IF YOU LIKE, SORRY TO BOTHER YOU BY. UM, ALL RIGHT. THEN ON 16 WIRE SERVICES NOT INCLUDED IN THE DEVELOPMENT OF THE RESIDENTIAL CUSTOMER CHARGE SCHEDULE G EIGHT GRANT. UM, SO THE DISTRIBUTION SYSTEM IS DRIVEN BY PRIMARILY, UH, YOU KNOW, TWO PRIMARY, UH, DRIVERS. UH, ONE IS DEMAND, UH, AND, AND ONE IS CUSTOMERS. UM, AND, AND SO AUSTIN ENERGY HAS DRAWN THE DISTINCTION AT THE METER, MEANING THAT METERS ARE DECIDEDLY CUSTOMER RELATED. UM, BUT AFTER THE METER, EVERYTHING ELSE IN THE DISTRIBUTION SYSTEM IS PREDOMINANTLY OR REASONABLY DRIVEN BY DEMANDS RATHER THAN THE EXISTENCE OF A CUSTOMER. AND SO THEREFORE SERVICES ARE PART OF THAT, THAT WE'VE INCLUDED AS BEING MORE ATTRIBUTABLE TO THE DEMAND THAN THE EXISTENCE OF A CUSTOMER OUT. I'D LIKE TO ADD JUST A LITTLE BIT, AND THIS IS, ARE WE ON NUMBER 16 YEAR? CORRECT. OKAY. ALL RIGHT. SO I CHECKED WITH OUR DISTRIBUTION DESIGN TEAM, AND IT JUST SO HAPPENS THAT, UH, WHEN WE NEED TO INITIATE SERVICE AT OUR NEW LOCATION, THE DISTRIBUTION DESIGN TEAM SENDS OUT A SURVEY TO THE CUSTOMER ASKING THEM FOR DETAILED INFORMATION ABOUT THEIR EXPECTED LOAD. OKAY. SO THERE IS A VERY DIRECT RELATIONSHIP BETWEEN THE LOAD THAT THE CUSTOMER PLANS TO IMPOSE ON THE SYSTEM AND THE SIZING OF THE SERVICE TO, TO, TO FEED THE CUSTOMER. SO [00:45:01] IT'S ESSENTIALLY, UH, YOU KNOW, THERE'S A DIRECT TIE BETWEEN A DEMAND DECLASSIFICATION OF A SERVICE DROP AND WHAT, AND WHAT'S ACTUALLY HAPPENING WITH OUR DISTRIBUTION DESIGN TEAM. ALL RIGHT. AND THEN ON QUESTION 17, PLEASE EXPLAIN THE NON-RECURRING EVENTS THAT CAUSED A KNOWN AND MEASURABLE ADJUSTMENT TO UNCOLLECTABLE EXPENSE, RIGHT. HI. UM, I'LL GO AHEAD AND SPEAK TO THAT. SORRY. UM, SO ESSENTIALLY WE JUST HAVE A BILLING DISPUTE WITH AN INFRASTRUCTURE BILLING, UM, WITH ONE CUSTOMER, UM, THAT AT THIS TIME WE'RE NOT ABLE TO HAVE CONFIDENCE IN THE COLLECTABILITY OF IT. ALL RIGHT. THANK YOU. SO THOSE ARE ALL THE QUESTIONS THAT WE RECEIVED FROM THE ICA IN THEIR FIRST SET. I WOULD NOTE THAT WE RECEIVED NINE QUESTIONS, UH, NON ADDITIONAL QUESTIONS YESTERDAY AT FIVE 15. WE'VE NOT HAD A CHANCE TO REVIEW THOSE QUESTIONS, BUT I WOULD, UM, STATE THAT WE'VE GOT A BREAK COMING UP IN A FEW MOMENTS UNTIL WE'LL ATTEMPT TO PERHAPS, UM, HUDDLE UP AND SEE IF WE CAN GET SOME RESPONSES TO SOME OF THOSE QUESTIONS, ALTHOUGH THEY SEEM, UH, PRETTY TECHNICAL IN NATURE. SO WE MAY HAVE TO JUST FOLLOW UP, UM, AFTER THIS, UH, JOHN. UM, SO THAT CONCLUDES THE QUESTIONS THAT WE RECEIVED FROM THE ICA. WHY DON'T WE GO AHEAD AND MOVE FORWARD THEN, UM, TO ADDRESS THE QUESTIONS FROM TIC. UM, GOOD MORNING, JOHN. GOOD MORNING. SO YOU SENT TWO QUESTIONS AND THEN YOU FOLLOWED UP WITH AN ADDITIONAL, UM, TWO QUESTIONS. AND THEN, UH, UH, UH, ONE FINAL QUESTION, UM, YESTERDAY. SO WE'LL START IN CHRONOLOGICAL ORDER, UH, BEGINNING WITH, UH, THE QUESTION THAT I ASKED, PLEASE EXPLAIN WHY A ALLOCATE SYSTEM PRODUCTION DEMAND RELATED COST TO CUSTOMER CLASSES USING THE 12TH CP ERCOT PEAK, RATHER THAN THE AC SYSTEM 12 CP GRANT. YEAH, I'M GOING TO, I'M GOING TO PROVIDE YOU THE, THE WAY I VIEW THIS ISSUE AND AUSTIN ENERGY AS WELCOME TO SUPPLEMENT MY COMMENTS AS THEY DEEM APPROPRIATE. UM, I GUESS I WOULD START BY SAYING THAT THE, THERE ARE 12 CP IS THE PRODUCTION DEMAND ALLOCATION METHOD THAT WAS, UH, ADOPTED AND USED IN THE LAST RATE REVIEW, WHICH I'M A KIND OF REFER TO THE 2016 RATE REVIEW. UM, AND SO THAT THAT'S THE SAME ALLOCATOR AS WAS ADOPTED IN, IN THAT, UM, THAT LAST RATE REVIEW. UM, I'LL ALSO REMIND, UM, FOR THE PURPOSES OF MY COMMENTS, REMIND EVERYONE THAT, UM, AUSTIN ENERGY DOES NOT CONTROL THE DISPATCH, UM, OF ITS GENERATION UNITS, UH, INTO THE ERCOT MARKET, UH, THAT IS DIRECTED, UM, BY, BY ERCOT. AND SO GENERALLY, UH, PRICES IN ERCOT ARE HIGH WIND DEMANDS IN AN ERCOT ARE HIGH. AND, AND SO THE MARGINS THAT AUSTIN ENERGY EARNS ON ITS GENERATION FLEET, UM, OBVIOUSLY ARE, ARE HIGHEST WHEN THE PRICES ARE HIGHEST. AND AS I JUST STATED, GENERALLY, PRICES ARE HIGH WHEN, WHEN THE ERCOT DEMAND IS HIGH. UM, AND I GUESS AS A QUICK ASIDE, YOU KNOW, THOSE MARGINS GET PASSED BACK TO THE BENEFIT OF ALL AUSTIN ENERGY'S RATE PAYERS THROUGH THE PSA. UM, SO THE IT'S ALSO TRUE THAT ALTHOUGH AUSTIN ENERGY'S LOAD IS PART OF THE OVERALL ERCOT LOAD, UM, IT DOESN'T DRIVE OR COD. UM, AND SO THE REVENUES THAT AUSTIN ENERGY RECEIVES FROM, UH, IT'S UNITS DISPATCHED AND THAT A CAUGHT MARKET ARE, ARE LARGELY DISCONNECTED FROM THE ACTUAL NATIVE LOAD OF AUSTIN ENERGY THAT'S BEING, BEING SERVED. AND SO TO THE EXTENT THAT AUSTIN ENERGY'S NATIVE LOAD IS NOT ON, YOU KNOW, NOT PLACING DEMANDS UPON THE ERCOT, UH, SYSTEM WHEN ERCOT MARKET IS PEAKING, UM, AUSTIN ENERGY IS GENERATING THE GREATEST VALUE FROM THAT GENERATION FLEET AND IS ABLE TO PASS BACK THE, THE, YOU KNOW, A, A MORE SIGNIFICANT PORTION OF THAT, UH, MARGIN BACK TO CUSTOMERS BECAUSE THEY DON'T ALSO HAVE TO CORRESPONDINGLY BUY AS MUCH LOAD TO SERVE THE NATIVE AUSTIN ENERGY LEARN LOAD. AND SO THE USE OF THE ERCOT 12 CP, UH, ALLOCATOR, UH, SENDS A PRICING SIGNAL TO CUSTOMERS, UM, TO, TO STAY OFF OF, UH, THE ERCOT PEAK DEMAND PERIODS. UM, IT'S ANALOGOUS TO THE SAME SIGNAL THAT'S BEING [00:50:01] SENT TO CUSTOMERS, UH, FOR THE TRANSMISSION, UM, UH, FUNCTION, UH, IN THE CASE OF TRANSMISSION, YOU KNOW, THE COSTS OF TRANSMISSION ARE DIRECTLY ALLOCATED TO CA TO AUSTIN ENERGY BASED ON, YOU KNOW, HOW MUCH OF THEIR NATIVE LOAD IS ON DURING THE FOUR SUMMER ERCOT MARKET PEAKS. UM, AND SO, UH, YOU KNOW, NOT TOO DISSIMILARLY THE, THE, THE MARGINS AND THE VALUE OF, OF, OF AUSTIN ENERGY GENERATION FLEET, UH, IS MAXIMIZED WHEN AUSTIN ENERGY'S CUSTOMERS ARE SIMILARLY NOT DEMANDING POWER AT THE TIME OF THE ERCOT MARKET PEAKS. ALL RIGHT, THANKS GRANT. UH, AND THEN THE SECOND QUESTION REFERS TO SCHEDULE GCX PLEASE RECONCILE A'S PROPOSED ALLOCATION OF ENERGY EFFICIENCY PROGRAMS, EXPENSES TO THE FOLLOWING TARIFF PROVISION IN THE PRIMARY GREATER THAN 20 MEGAWATTS AND HIGH LOAD FACTOR, TRANSMISSION VOLTAGE RATE SCHEDULES, AND THEN UNDER IT, IT SAYS MAXIMUM COMMUNITY BENEFIT CHARGES DURING THE TERM OF A SERVICE CONTRACT CUSTOMER ASSISTANCE PROGRAM CHARGES SHALL NOT EXCEED 200,000 DURING ANY CALENDAR YEAR PRORATED FOR ANY PARTIAL YEAR CHARGES FOR SERVICE AREA LIGHTING AND ENERGY EFFICIENCY SERVICES DO NOT APPLY UNDER THIS RATE SCHEDULE GRANT. UM, SO FIRST OF ALL, JUST CLARIFYING MY COMMENTS ASSUME THAT THE REFERENCE TO PRIMARY VOLTAGE GREATER THAN 20 MEGAWATTS IS REALLY A REFERENCE TO PRIMARY VOLTAGE GREATER THAN 20 MEGAWATTS AT 85% AVERAGE LOAD FACTOR. UM, I GUESS FOR MY 2, 2, 2 MAIN COMMENTS HERE, UH, ONE IS, UM, THE FACT THAT AUSTIN ENERGY HAS MADE A RATE ACCOMMODATION FOR THESE CUSTOMERS DOESN'T REALLY CHANGE THE COST OF SERVICE. UM, SO TH THE, THE MEANS OF COSTS ASSIGNMENT IS NOT REALLY IMPACTED BY WHETHER THEY DO OR DON'T MAKE ACCOMMODATION TO NOT CHARGE THIS CUSTOMER A PARTICULAR FACET OF THE OVERALL RATE TARIFF. IF THEY CHARGE THE CUSTOMER NOTHING FOR ELECTRIC SERVICE, IT WOULDN'T MEAN THAT IT DOESN'T COST ANYTHING TO PROVIDE THAT CUSTOMER ELECTRIC SERVICE. IT JUST MEANS THEY'VE CHOSEN, UH, TO ACCOMMODATE THEM, UH, IN A CERTAIN MANNER. SO ONE HAS NOTHING TO DO WITH THE OTHER, AND IN LARGE PART, UM, THE, THE OTHER COMMENT I'LL MAKE IS THAT THAT LARGELY THIS IS MOOT BECAUSE, UM, YOU KNOW, THIS IS A, A COST THAT ENDS UP IN THE, UH, COMMUNITY BENEFIT, CHARGE, A PASS THROUGH, WHICH IS NOT A PART OF THIS BASE RATE REVIEW. UM, SO THESE, YOU KNOW, REGARDLESS OF HOW THEY, THEY SHOW UP AS BEING ALLOCATED IN THIS ANALYSIS, IT DOESN'T REALLY MAKE ANY DIFFERENCE. CAUSE THERE'S NO, THERE'S NO IMPACT ON BASE RATES. IT'S NOT PART OF THIS REVIEW. OKAY. SO JUST TO, TO BE CLEARED, IT ISN'T A COMBINATION, WHICH IS WHY THE 3 MILLION DOESN'T SHOW UP AND THE TARIFF JUST TO BE CORRECT. I'M NOT SURE WHAT 3 MILLION YOU'RE REFERRING TO, BUT IF YOU'RE SAYING THAT AT THE, AND THE ALLOCATION IN THE WORKSHEET SHOWS THAT $3 MILLION OF, UH, WHAT WAS THE CES E S UH, IT SHOWS UP UNDERNEATH, UH, AS A, IS ASSIGNED TO THE RESPONSIBILITY OF THIS CLASS. YEAH. THAT DOES NOT MEAN THAT THAT'S ACTUALLY BEING COLLECTED FROM THOSE CUSTOMERS. THAT'S TRUE. OKAY. AND, YEAH, SORRY, JUST TO BE CLEAR, THE 3.7 MILLIONS FROM SCHEDULE G SEVEN, WHICH WE DIDN'T MENTION IN OUR COMMENTS, BUT, UH, SHOWS MONEY OR SHOWS CHARGES FROM RECOVERED SERVICE AREAS, STREET LIGHTING, AND ENERGY EFFICIENCY PROGRAMS UNDER COMMUNITY BENEFIT. YEAH, ABSOLUTELY. IT ACTUALLY, I'M GLAD YOU'VE REFERENCED THE, IT MIGHT BE HELPFUL TO THOSE, UH, LOOKING AT THIS, EH, ANY COSTS THAT SHOW UP ON SCHEDULE G SEVEN ARE ALL PASSED THROUGH, THROUGH TO SOME OTHER NON BASE RATE ELEMENTS. SO ANY, ANY DOLLAR AMOUNTS THAT SHOW UP ON ARE NOT SHOWING UP SOMEWHERE IN BASE RATES THERE, THEY'RE GOING TO BE, UH, UH, ASSIGNED TO A PASS THROUGH TO BE RECOVERED, UM, YOU KNOW, IN A PASS THROUGH THAT WILL BE SET OUTSIDE OF THIS PROCESS. THANK YOU. ALL RIGHT. AND THEN GOING TO THE, WHAT I'LL CALL THE SECOND SET OF QUESTIONS. UM, LET ME SKIP OVER THAT, THAT FIRST ONE FOR A MOMENT AND GO TO THE SECOND ONE. UM, EXPLAIN WHY AUSTIN ENERGY HAS HISTORICALLY DIVIDED THE SYSTEM ON THE BASIS OF GENERAL VOLTAGE LEVELS AND HAS NOT PERFORMED SUBDIVISIONS OF THE SYSTEM WITHIN A GIVEN VOLTAGE LEVEL. RIGHT? SURE. UM, SO IT IS COMMON UTILITY PRACTICE TO SEPARATE, UM, THE SERVICE VOLTAGES INTO THE GENERAL CATEGORIES OF TRANSMISSION PRIMARY AND SECONDARY, UH, WHICH IS WHAT AUSTIN ENERGY HAS DONE. UM, IN THEORY, YOU COULD SUBDIVIDE THAT FURTHER INTO, YOU KNOW, MORE GRANULAR LEVELS OF VOLTAGES, UM, BUT THERE'S AN ADMINISTRATIVE BURDEN ASSOCIATED WITH DOING SO AND, [00:55:01] AND KIND OF DIMINISHING RETURNS IN TERMS OF WHAT LEVEL OF MORE ACCURACY YOU ACHIEVE, UH, BY ENDEAVORING TO, TO, TO DRILL DOWN INTO A, A MORE, UH, MORE GRANULARLY FOCUSED, UH, VOLTAGE LEVEL. UM, SO A'S APPROACH REASONABLY DIFFERENTIATES, UM, YOU KNOW, THE, THE CUSTOMER CLASSES BASED ON SERVICE VOLTAGE, IT'S FOR THE PURPOSES OF COST ALLOCATION. OKAY. SO JUST TO BE CLEAR, THE REASONING IS BECAUSE IT LESSENS THE ADMINISTRATIVE BURDEN. UH, I GUESS MY ANSWER IS IT'S IT'S STANDARD INDUSTRY PRACTICE TO SEPARATE, UH, BY GENERAL VOLTAGE LEVELS OF TRANSMISSION, PRIMARY, SECONDARY, UM, AND THAT REASONABLY, UM, ALLOWS FOR A DIFFERENTIATION OF SIMON OF COSTS BASED ON THOSE VOLTAGES. ANYTHING FURTHER ON THAT? ALL RIGHT, THEN, UM, THEN LET'S GO BACK UP TO, UM, THE FIRST QUESTION IN RESPONSE TO TIC TC, ONE DASH TWO AUSTIN ENERGY STATED THAT CUSTOMERS IN THE PRIMARY VOLTAGE OVER THREE AND OVER 20 MEGAWATT CLASSES TAKE DELIVERY SERVICE DIRECTLY FROM AUSTIN ENERGY ON DISTRIBUTION SUBSTATIONS, JOHN, WHERE YOU GOING TO MAKE A COMMENT ABOUT THAT? SURE. I HAVEN'T CHECKED THE, UH, THE, UH, RFI, BUT MY MEMORY WAS THAT IT ASKED WHETHER WE HAD ANY CUSTOMERS THAT TOOK IT AND THE RESPONSE TO THAT WAS YES, BUT WE DID NOT SAY THAT ALL CUSTOMERS TOOK ALL RIGHT. AND THEN THE OTHER TWO QUESTIONS ASK, UM, FOR, UH, CUSTOMER INFORMATION THAT, UM, RES CONFIDENTIAL, UM, ISSUES. UM, WE'RE STILL LOOKING AT THAT. UM, SO IF WE MAY, WE'D LIKE TO KIND OF FOLLOW UP AND GET BACK IN TOUCH WITH YOU. WOULD YOU, DO WE NEED TO SUBMIT AN RFI FOR THAT OR WILL IT JUST BE A FOLLOW-UP? NO, THIS IS SUFFICIENT. THAT'S NOT THE CONCERN. THE CONCERN IS JUST REALLY JUST RELEASING ANY, UM, INFORMATION THAT COULD END UP, UM, DIVULGING CUSTOMER SPECIFIC DATA. UM, ALL RIGHT. AND THEN, UM, THEN YOU, YOU SUBMITTED A FINAL QUESTION, UM, ASKING FOR AUSTIN TO PROVIDE AN EXPLANATION OF WHAT METHODOLOGY AUSTIN ENERGY HAS PROPOSED TO ALLOCATE PRODUCTION DEMAND, COST AMONG CLASSES OVER TIME, INCLUDING ANY CHANGES TO THAT METHODOLOGY AND WHETHER SUCH METHODOLOGY WAS APPROVED BY THE CITY COUNCIL GRANT. SURE. SO, UM, SINCE THE ADVENT OF THE, THE MODERN NODAL CONSTRUCT AND ERCOT, UM, AUSTIN ENERGY HAS USED, UH, TO PRODUCTION DEMAND ALLOCATORS, UM, IN THE 20 10, 20 12, UH, CASE, UM, THE, THE ALLOCATOR UTILIZED WAS 84 CP, UM, IN THE 2016 REVIEW. AND IN THIS RATE REVIEW, UH, THAT HAS BEEN, UH, ADJUSTED, UM, TO USE ERCOT, UH, 12 CP. UM, SO THAT THAT'S THE ONLY CHANGE IN METHODOLOGY THAT'S, THAT'S TAKEN PLACE SINCE THAT, YOU KNOW, IN THAT TIMEFRAME AND THAT WAS APPROVED BY THE CITY COUNCIL. OH, SORRY. UH, THANKS FOR POINTING THAT OUT. I, I MISSED THAT PART OF THE QUESTION. SO I, I WILL ADMIT THAT I AM PROBABLY NOT THE ONE TO SPEAK ON BEHALF OF OZ ENERGY ABOUT WHAT CITY COUNCIL HAS APPROVED, BUT IT'S MY UNDERSTANDING THAT IN THE 20 10 20 12 TIMEFRAME, THAT RATE REVIEW, UH, CITY COUNCIL, UM, INDICATED THAT THE, THAT THE ALLOCATOR WAS, WAS APPROPRIATE. UH, BUT TO MY KNOWLEDGE, THEY'VE NEVER DICTATED OR SUGGESTED THAT A, A CERTAIN, UH, PRODUCTION DEMAND ALLOCATOR SHOULD BE USED. AND IF THERE'S SOMEBODY AT AUSTIN ENERGY THAT CAN SPEAK TO THAT MORE SPECIFICALLY, OR I'M WRONG, PLEASE SPEAK UP. BUT THAT'S, THAT'S MY UNDERSTANDING PERSONALLY, BOTH THE 2012 AND 2016 CASES ULTIMATELY RESULT IN ITS SETTLEMENTS THAT WERE APPROVED BY THE COMMISSION, EXCUSE ME, BY THE COUNCIL, THE 20 12 1 WAS ALSO APPROVED BY THE COMMISSION. OKAY. YOU HAD TO ADD ONTO THAT. I DON'T THINK THERE WAS ANY PRODUCTION DEMAND, ALLOCATION METHODOLOGY STIPULATED IN ANY OF THE SETTLEMENT AGREEMENTS, 2016. UH, BUT I WOULD NOTE THAT THE IAG REPORT IN THE 2016 CASE, FIRST OF ALL, IT WAS A DISPUTED ISSUE. IT'S ALWAYS A DISPUTED ISSUE, RIGHT? THIS IS SORT OF THE BIG, THE BIG KAHUNA. AND, UM, THE IAG DID FIND THAT [01:00:01] ERCOT 12 CP WAS APPROPRIATE AFTER OTHER PARTIES PRESENTED ANOTHER, A NUMBER OF ALTERNATIVE METHODOLOGIES UNTIL I FOLLOW UP BACK ON THE PRIOR QUESTION, THE, UH, ABOUT CUSTOMERS IN THE PRIMARY VOLTAGE OVER THREE MEGAWATTS AND OVER 20 MEGAWATT CLASSES. SO DO SOME, JUST TO BE CLEAR, SOME DO TAKE SERVICE DIRECTLY FROM AUSTIN ENERGY OWN SUBSTATIONS. YES. BUT JUST REPLY THAT THERE, THERE, THERE IS AT LEAST ONE, BUT WE DON'T WANT TO DO ANYTHING TO IDENTIFY CUSTOMERS. SO, AND SOME DO NOT. AND I DID NOT SAY THAT, OH, NO. ON A, ON A, SOME DO NOT TAKE IT DIRECTLY FROM AUSTIN ENERGY SUBSTATIONS, UH, IN THE, IN THE, IN, IN THE, IN THE, IN THE HEIGHT THAT ABOVE 20 MEGAWATT, I THINK HE WAS ASKING OVER THREE OVER THREE, BUT I DON'T WANT TO PUT WORDS IN YOUR MOUTH ON ANY, UH, OVER THREE. I, I'M NOT SURE ABOUT THAT. OKAY. COULD YOU ALL FOLLOW UP IF ANY, DO NOT TAKE IT DIRECTLY? CAUSE WE ASKED FOR YOU TO CONFIRM THAT ALL DO TAKE IT DIRECTLY. YEAH. AND YOU HAVEN'T CONFIRMED THAT. CORRECT. OUR CONCERN IS THAT THERE'S SO FEW INVOLVED THAT NO MATTER WHAT YOU SAY, YOU MIGHT BE, UM, INADVERTENTLY REVEALING, UM, WHO'S LEFT. UM, SO AS I SAID AT THE BEGINNING, LET US CHAT AND THEN WE'LL FOLLOW UP WITH YOU. THANK YOU. TH THERE'S TWO THINGS, RIGHT? ONE IS, CAN WE SAY, AND THE SECOND IS HOW MANY IS IT ALL OR IS IT NOT ALL CORRECT? SO, AND YOU CAN'T SAY EITHER HOW MANY OR WHETHER OR NOT THEY DO, WE CAN'T SAY UNTIL WE KNOW IF WE CAN SAY, YOU KNOW, I PROMISE WE'RE NOT TRYING TO BE EVASIVE. IT JUST SOUNDS THAT WAY. UH, ALL RIGHT. THOSE ARE ALL THE QUESTIONS WE'VE RECEIVED FROM TIC. UH, WE DID ALSO DID ALSO RECEIVE, UM, A COUPLE OF QUESTIONS FROM PAUL ROBINSON AT, I DON'T SEE IN THE ROOM ANY LONGER. UM, YEAH, I WAS ABOUT TO SAY, I DON'T KNOW. DOES ANYONE KNOW WHAT HAPPENED TO PAUL? HE JUST STEPPED OUT. UM, IF HE'S THERE, LET'S SEE IF WE CAN ADDRESS IT. CAUSE WE COUPLE OF SURE. UM, LET'S SEE IF HE'S HERE, WE'LL JUST DO THESE. UM, THERE'S ONLY TWO YOU DIDN'T SEE PAUL ROBBINS WANDERING AROUND OUT THERE. DID YOU? OH YEAH, NO, A LOT SNACK ROOM. IS THERE? I DON'T EVEN KNOW YOU UNDERSTOOD. ALL RIGHT. WELL THEN WHY DON'T WE GO AHEAD AND MOVE ON IF HE SHOWS UP, UH, WE'LL ADDRESS HIS TWO QUESTIONS. WE ALSO RECEIVED YESTERDAY AT 5 0 3 17 QUESTIONS FROM, UM, TWO WR. UM, AS I NOTED WITH, UH, WITH RESPECT TO THE QUESTIONS WE RECEIVE LIGHT FROM US IN THE RCA, UM, ONE IN THE SIMILAR BOAT WHERE WE HAVEN'T REALLY HAD A CHANCE TO VISIT ABOUT THESE. IF WE TAKE A BREAK, UM, WE'LL SEE IF THERE'S, UM, SOME THAT CAN BE QUICKLY ANSWERED. OTHERWISE WE'RE GOING TO NEED TO FOLLOW UP. UM, CAUSE THERE'S A LOT HERE. NOT TOTALLY UNDERSTOOD AND WE'RE DOING THE SAME. UM, JUST HAVEN'T TOTALLY GET IT, BUT I, I JUST DIDN'T WANT YOU TO BE EXPECTING IMMEDIATE RESPONSES TO ALL OF THESE, UM, GIVEN THAT THE TIME THAT WE RECEIVED THEM. UM, OKAY. SO THOSE ARE ALL THE QUESTIONS THAT WE RECEIVED FROM FOLKS. UM, SO CYRUS, IF YOU WANT TO ASK YOUR QUESTIONS, PLEASE COME FORWARD AND, AND UH, AND LET'S GO. SURE. I'LL BE VERY QUICK. CYRUS READS SIERRA CLUB. UM, QUESTION NUMBER ONE. AND THIS COMES FROM, UH, OUR LAWYERS WHO LIVE IN OAKLAND, UM, UH, IS THE DEADLINE FOR INTERVENING TODAY AT NOON OR TODAY AT FIVE? TH THE DEADLINE IS TODAY AT NOON. HOWEVER, JUST SAYS, UM, IN OTHER CASES IT'S SO ON THE PC, UH, IF WE GET A LATE FILED INTERVENTION, A PARTY CAN STILL PARTICIPATE. THEY'RE JUST EXPECTED TO TAKE THE CASES THEY FIND IT. SO IT'S GOT AN, A NOON. UM, THAT BEING SAID, I WOULD LIKE TO NOTE THAT IN THE PROCEDURAL SCHEDULE, YES, IT JUST HAD TODAY'S DEADLINE. IT [01:05:01] DID NOT HAVE A TIME. RIGHT. SO I WOULD, I WOULD ASK FOR FORGIVENESS FOR THOSE WHO MIGHT WE'LL GET IT IN BY NOON, BUT FOR THOSE, YOU KNOW, IT, IT WASN'T CLEAR IN YOUR PROCEDURAL SCHEDULES. I WANT TO NOTE THAT ON THE RECORD, UH, UNDERSTOOD. UM, AND AS I NOTED, WE'RE NOT GOING TO OBJECT SOMEONE FALLS IT AT TWO O'CLOCK, THREE O'CLOCK OR EVEN TOMORROW, UM, THAT WE JUST WOULD EXPECT THAT THEY WOULD TAKE THE CASES, THEY FIND IT. AND WOULDN'T ASK FOR, YOU KNOW, SOME SPECIAL MODIFICATIONS BECAUSE THEY, UM, DIDN'T INTERVENE TIMELY. THE OTHER THING I WOULD NOTE IS JUST AS IN 2016, THE FILING DEADLINE, UH, IS AT 12 O'CLOCK. UM, I KNOW AT THE PUC, FOR EXAMPLE, IS AT THREE O'CLOCK, BUT HERE IT'S AT 12, UM, SO THAT WE CAN GET DOCUMENTS TO THE CLERK AND THE CLERK CAN PUT THEM ON THE, UM, OKAY. SO THAT WILL SIMILARLY BE TRUE FOR THE JUNE ONE, UH, GETTING YOUR QUESTIONS AND CORRECT. AND THE JUNE 15TH, CORRECT. ALL, ALL DEADLINES ARE AT 12 O'CLOCK UNLESS YOU HEAR OTHERWISE. OKAY. THAT'S USEFUL. UM, SECOND QUESTION, UM, IN YOUR SCHEDULE, YOU HAVE, UH, SOME, AND, UH, I'M NOT LOOKING AT IT, RIGHT. IT'S NOT RIGHT IN FRONT OF ME, BUT, UM, YOU HAVE SOME DATES FOR POTENTIAL SETTLEMENT TALKS AND THE DATES FOR THE ACTUAL HEARINGS, UM, IS THE EXPECTATION THAT ALL PEOPLE MUST BE PHYSICALLY PRESENT IN THE ROOM, OR WILL YOU BE ALLOWING FOR, UH, LIKE MR. CLARENCE JOHNSON IS DOING RIGHT NOW. AND I SAY THAT BECAUSE WE'RE LIKELY TO HAVE A COUPLE OF EXPERTS AND WE CAN GET THEM HERE. IF WE NEED TO. THAT BEING SAID, IT'S FAR EASIER IF, IF THEY LIVE FAR AWAY AND GIVEN THE SITUATION WITH COVID, WHICH NOBODY KNOWS WHAT IT'S GOING TO LOOK LIKE IN 30 DAYS. UH, SO I'M ASKING, IS THAT SOMETHING THAT WILL BE DECIDED BY THE JUDGE LATER? OR IS THAT SOMETHING THAT'S BEEN DECIDED NOW? A LITTLE BIT OF ALL OF THAT. I MEAN, LIKE, YOU WERE ALL KIND OF STRUGGLING IN THIS NEW WORLD. UM, WE WANT TO MAKE THE PROCEDURES AND PROCESSES, UM, UH, ACCESSIBLE AT THE SAME TIME. THERE ARE SOME OBVIOUS BENEFITS TO EVERYONE BEING IN THE SAME ROOM. UM, I DON'T KNOW IF WE'VE SORT OF FORMALLY LANDED ON KIND OF WHERE WE ARE. I SEE A HEAD, UH, SHAKING. SO, UM, LET US SORT THROUGH THAT AND WE'LL GET BACK TO YOU. OKAY. IT'D BE NICE FOR ALL PARTIES TO KNOW THAT NOW, BECAUSE I'M SURE OTHER FOLKS HAVE EXPERTS AS WELL AND KNOW WHETHER THEY NEED TO GET THEM HERE OR NOT. UM, UM, I CAN'T TELL YOU, I MEAN, OUR PREFERENCE WOULD BE THAT EVERYONE'S HERE JUST BECAUSE LOGISTICALLY IT'S EASIER THAN, YOU KNOW, HAVING TO TURN BACK AND THEN HERE AND TECHNOLOGY ISSUES. UM, BUT WE ALSO UNDERSTAND THAT TRAVEL AND EXPENSES ASSOCIATED WITH IT, YOU KNOW, ARE PROBLEMATIC. SO, UM, LET US, LET US GATHERING AND COME BACK TO YOU ALL ON THAT. I UNDERSTAND THAT THAT'S AN ISSUE. THE THIRD, THE THIRD ISSUE, I'M JUST GOING TO RAISE. AND I DON'T KNOW, WE HAVEN'T DETERMINED WHETHER WE'RE GOING TO SAY SOMETHING FORMALLY OR NOT, BUT, UM, WE DO HAVE SOME CONCERNS ABOUT SOME OF THE TIMING OF THIS. WE UNDERSTAND WE'RE ON A SHORT SCHEDULE, BUT, UM, JUST AS AN EXAMPLE, THE JUNE ONE DEADLINE TO GET ANY QUESTIONS IN. UM, AND THEN, UH, YOU GUYS HAVE 14 DAYS AND THEN THE DEADLINE TO PUT YOUR POSITION STATEMENT AND EXPERT TESTIMONY IS JUNE. IF YOU REALLY TAKE THE 14 DAYS, THAT'S NOT VERY MUCH TIME TO SEE RESPONSES AND POTENTIALLY ADJUST YOUR, SO I'M NOT SAYING WE'RE GOING TO DO IT, BUT WE MAY ASK, YOU KNOW, WE MAY, WITH OTHER PARTIES SUGGEST SOME CHANGES TO SOME OF THOSE, THE TIMINGS, UH, JUST BECAUSE OF THAT. CAUSE WE'RE CONCERNED. YOU KNOW, WHAT IF, WHAT IF YOU GET A QUESTION BACK EVEN A FEW DAYS BEFORE, BUT THEN YOU WANT TO DO A FOLLOW UP QUESTION TO, YOU KNOW, IT JUST, IT'S JUST NOT A LOT OF TIME AND UNDERSTAND WHERE THIS IS A TIGHT SCHEDULE, BUT, UH, I JUST WANT TO RAISE THAT NOW THAT WE MAY BE SUGGEST MAKING SOME SUGGESTIONS ON SLIGHT TWEAKS TO THE SCHEDULE. I WOULD SAY A COUPLE OF THINGS. UM, WE FILED A MONTH AGO, SO IT'S BEEN OUT THERE FOR A MONTH. UM, I WOULD ENCOURAGE YOU IF YOU'VE GOT QUESTIONS, GET THEM TO US. UH, IF WE'RE LIGHT IN THE PROCESS AND WE'RE ABLE TO, WE CAN VISIT WITH YOU ABOUT GETTING RESPONSES TO SOME QUESTIONS PERHAPS SHORTER THAN THE 14 DAYS, IF THAT'S POSSIBLE. UM, SO THOSE ARE MY INITIAL THOUGHTS. AND THEN, UM, THE FINAL, MY FINAL SORT OF STATEMENT OR QUESTION, AS I KNOW, YOU HAVE CLEARLY STATED THAT THE, UH, CUSTOMER BENEFIT CHARGE AND E S R A SEPARATE TARIFF HANDLED ANNUALLY AND ARE NOT PART OF THIS RATE CASE, THAT BEING SAID, WE THINK THERE ARE SOME ISSUES THAT TOUCH ON THAT AND WE'RE LIKELY TO RAISE THOSE ISSUES. THAT'LL BE OBVIOUSLY UP TO YOU GUYS AND THE JUDGE, WHETHER SOME OF THOSE ISSUES GET RESOLVED. AND JUST AS AN EXAMPLE, UH, BECAUSE THE CHANGES IN THE VALUE OF SOLAR MAY BE USING SOME OF THOSE FUNDS THAT COULD THEN POTENTIALLY IMPACT SOME OF THE GOALS WE'D LIKE TO SEE ON. SO [01:10:01] WE'RE GOING TO RAISE THOSE ISSUES. OKAY. IT'LL BE UP TO EVERYBODY, WHETHER THOSE ARE ULTIMATELY INCLUDED, BUT I JUST WANT TO SORT OF FOREWARN YOU THAT THAT'S OUR PLAN. YEAH. THANKS FOR DOING THAT. AND ACTUALLY, UM, I WOULD ASK W WHY DON'T YOU CALL ME WHEN YOU HAVE A KIND OF A FULLER PICTURE OF, OF EXACTLY WHAT YOU'RE THINKING. AND THE REASON I'M ASKING YOU TO DO THAT IS SO THAT YOU DON'T WASTE RESOURCES AND WE'RE NOT GETTING UNNECESSARILY CONTENTIOUS. UM, CAUSE I THINK IF WE HAVE AN IDEA OF KIND OF WHERE YOU WANT TO GO, THEN WE CAN KIND OF TALK. I MIGHT NOT HAVE AN IDEA TODAY BY NOON AND I WASN'T MEANING THAT YOU SHOULD TODAY, BUT I'M JUST SAYING BEFORE YOU GO AND, YOU KNOW, PREPARE SOME TYPE OF TESTIMONY OR STATEMENT OF POSITION, UH, AND THEN WE'RE IN A POSITION OF SAYING, WELL, WE THINK THIS IS OUTSIDE OF THE SCOPE AND WE'RE FILING SOMETHING TO STRIKE IT IN THE EXTREME, UM, CIRCUMSTANCE. I JUST THINK IF WE HAD A CONVERSATION UP FRONT, WE MIGHT BE ABLE TO KIND OF REACH SOME AGREEMENT. SO AGAIN THAT WE'RE NOT WASTING RESOURCES IN FIGHTING UNNECESSARILY. OKAY. APPRECIATE THAT. YEAH. THOSE WERE ALL MY QUESTIONS. UM, I STILL DON'T SEE. OH NO, PAUL, EXCUSE ME. HOW CAN I MISS YOU? UH, PAUL, IF YOU WANT TO COME FORWARD, WE'VE GOT THOSE TWO QUESTIONS THAT YOU, UM, HAD ASKED. UM, THE OTHER DAY, THE FIRST I WAS SO THIN THAT IT'S HARD TO SEE ME FROM YEAH, DON'T TURN SIDEWAYS. UM, IN PREPARATION FOR WHAT WAS TOMORROW'S RESOURCE MANAGEMENT COMMISSION BRIEFING ON THE RATE INCREASE, I'M ASKING YOU TO SEND ME THE MOST, THEIR MONTHLY CASHFLOW AND REVENUE REQUIREMENTS FOR THE RESIDENTIAL SECTOR. UH, AND THEN YOU S YOU NOTED THAT THE UTILITY HAS PUBLICLY STATED IN THE PAST THAT IT IS NOT COLLECTING ENOUGH REVENUE FROM THE RESIDENTIAL RIGHT CLASS IN A TIMELY MANNER. UH, I'M ASKING TO SEE THE EVIDENCE FOR THIS STATEMENT SLASH BELIEF, UH, GRANT, YOU WANT TO RESPOND? ABSOLUTELY. GARY YOU'LL PULL UP THE CLASS TARGETS WORKSHEET WHILE I'M ANSWERING. THAT'D BE HELP. WELL, I'M SORRY, WHAT NUMBER WORKSHEET IS THIS? YEAH, IT'S ONE OF THE ONLY WORKSHEETS IN THE ENTIRE DOCUMENT THAT DOESN'T HAVE A NUMBER, BUT GARY, GARY WILL PULL IT UP AND, AND YOU'LL SEE. YOU'LL, YOU'LL SEE IT HERE SHORTLY. UH, THERE PROBABLY. YEAH. GARY, IF YOU DON'T MIND ALSO LOOKING FOR THE BATE STAMP ON THAT AFTER YOU GET IT PULLED UP, UH, THAT THAT WOULD BE HELPFUL TO BE AS A REFERENCE. GOOD SUGGESTION. LINETTA UM, SO I GUESS FIRST THE REVENUE REQUIREMENT IS NOT DEVELOPED ON A MONTHLY BASIS, SO WE CAN'T GIVE YOU THE REVENUE REQUIREMENT BY MONTH. IT'S A, IT'S AN ANNUAL NUMBER. UM, BUT THIS WORKSHEET THAT THAT'S SHOWN HERE ON THE SCREEN, UH, DOES DOCUMENT, UH, WHAT AUSTIN ENERGY IDENTIFIED AS THE UNDER RECOVERY FROM EACH CUSTOMER CLASS, INCLUDING THE RESIDENTIAL CUSTOMER CLASS. SO ON AN ANNUAL BASIS, THE UNDER RECOVERY ON AN ANNUAL BASIS. AND SO ONE MIGHT INTERPOLATE, WELL IT'S X PERCENT, UH, THEN MAYBE BY AUGUST, IT WOULD BE X PERCENT, THAT KIND OF THING. YOU COULD DO THAT. AND THAT THE ISSUE IS THAT, YOU KNOW, THE, SOME OF BOSTON ENERGY'S COSTS ARE THE SAME MONTH IN MONTH OUT. UH, AND SOME OF THEM ARE VASTLY DIFFERENT DEPENDING ON IF WE'RE IN THE SUMMER OR NOT. SO, YOU KNOW, WHETHER THEY'RE OVER OR UNDER RECOVERING BY A CERTAIN DOLLAR AMOUNT IN A PARTICULAR MONTH MAY NOT BE ALL THAT. UH, AND YOU CAN'T GET THERE WITH PRECISION FROM, FROM, FROM ANYTHING THAT WE HAVE AVAILABLE, BUT, BUT YOU COULD MAKE AN ASSUMPTION ABOUT THEM BEING, YOU KNOW, DIVIDE BY 12 AND, AND ASSUME THAT THE, YOU KNOW, THAT THAT'S REPRESENTATIVE OVER THE COURSE OF A YEAR, IT WOULD BE. BUT IF ANY PARTICULAR MONTH, IT, IT MAY NOT BE OKAY. WHERE WOULD I FIND THIS SHEET? YEAH. UM, SO WE'RE GOING TO LOOK UP THE BATE STAMP FOR YOU, BUT, BUT THIS WORKSHEET THAT'S SHOWN, I'M SORRY. IT'S FINE. UH, 3, 3, 3 BATES STAMP 3, 3, 3. ARE THERE DASHES IN THESE NUMBERS OR I THINK IT'S C3 3, 3, 3 DASH NINE. OH BOY. THERE'S TWO DIFFERENT NUMBERS. THERE'S THE C, WHICH IS NUMERICALLY LESS THAN THE BATE STAMP WE CAN GET THAT'S RIGHT. JUST THE SAME AS THE SEAT. OH YEAH. FAIR ENOUGH. SORRY. YEAH. SEE, 1, 1, 1, OR BATE STAMP. 3, 3, 3, 3 DASH ONE C THREE. I'M SORRY, C 1, 1, 1, OR ALTERNATIVELY ON THE SAME PAGE. IT SHOULD ALSO HAVE A BAIT SAMPLE OF 3, 3, 3. ANYWAY, I'LL LOOK FOR IT. FAIR ENOUGH. UH, BUT, BUT WHAT, WELL, IT'S NOT SHOWING UP HERE ANYMORE, BUT, UM, I GUESS GARY'S NAVIGATING TO IT, BUT WHAT WHAT'S ON THAT WORKSHEET IS A SUMMARY OF BY CUSTOMER CLASS. UH, WHAT WE FORECAST THE, UH, BASED REVENUES WOULD BE UNDER CURRENT RATES UNDER PROPOSED RATES, WHAT THE COST OF SERVICE IS, AND THEN THE COMPARISON, UH, VARIOUS DIFFERENT WAYS OF LOOKING AT WHAT THE COMPARISON WOULD BE [01:15:01] BETWEEN, YOU KNOW, COST OF SERVICE AND THE, THE REVENUE WE EXPECT UNDER. OH, I WILL LOOK FOR IT. SURE. UM, THE OTHER QUESTION IS THE OTHER ONE, UM, ASK ON PAGE 1 30, 3 OF THE RIGHT FILING TABLE EIGHT, B BILL IMPACTS FOR INSIDE CITY LIMITS, RESIDENTIAL CUSTOMERS ENROLLED IN CAP. IT APPEARS TO PRESUME THAT THE ENTIRE $25 PROPOSED MONTHLY SERVICE FEE WILL BE WAIVED. IT WOULD SEEM TO ME THAT IN ORDER TO DO THIS, THAT UTILITY WOULD HAVE TO INCREASE THE OVERALL CAP DISCOUNT. UH, WHAT IS THE NEW PROPOSED CAP DISCOUNT STRUCTURE AND HOW MUCH IS IT PREDICTED TO COST TO THE ENTIRE UTILITY PER YEAR? GREAT. UM, SO IF, UH, GARY YOU'D BE WILLING TO GO TO THE NEARBY SCHEDULE H 5 2 1, UH, THE BOTTOM HALF OF THAT WORKSHEET IS, UH, UH, SHOWS THE, THE, THE STRUCTURE OF THE CAP, UH, DISCOUNT. UH, IT IS, IT IS UNCHANGED, UH, UNDER THE PROPOSAL THAT THEY, YOU KNOW, THE STRUCTURE IS THE SAME, MEANING THE WAIVING OF THE CUSTOMER CHARGE AND A 10% DISCOUNT ON THE REMAINDER OF THE BILL. AND THEY DON'T HAVE TO PAY THE, THE CAP, UH, PASSENGER CHARGE. UM, THAT'S SUMMARIZED THERE ON THE LEFT-HAND SIDE OF THAT SCREEN, AND THEN QUANTIFY BELOW THAT IS THE DOLLARS INVOLVED UNDER THE CURRENT RATES AND THE PROPOSED RATES. SO YOU CAN SEE WHAT THE, UH, DOLLAR INCREASE IN CAP, UH, FUNDING IS NEEDED. AND THEN ALSO CORRESPONDINGLY A, A CAP, A PASS THROUGH CHARGE THAT RECOVERS THOSE DOLLARS AT THE VERY BOTTOM OF THAT WORKSHEET. I LOOK FOR IT. THANK YOU. YEAH. I'M SORRY THAT, THAT WAS ALSO THE WORKSHEET. I WAS HOPING IT MIGHT BE HELPFUL TO YOU. YEAH. CAUSE THIS OUTLINES NUMBER ONE MORE TIME OF THE WORKSHEET. YEAH. IT'S UH, OH, IT'S, UH, SCHEDULE H FIVE TO ONE. OH, I, AND IT, THE PAGE 1 33, IS THAT THE BAIT OR THAT'S THE BATE STAMP? THE ONE ON THE RIGHT-HAND CORNER, 3, 3, 3 IS THE BATE STAMP OR A DIFFERENT WORKSHEET. AND Y'ALL SAID, OH, IT WOULD BE A LOWER NUMBER THAN THAT ORIGINALLY SAID, PAGE ONE. THAT WAS MY QUESTION. LINDA AND PAGE 1 33 WAS REFERRING TO THE ORIGINAL, UH, RATE CASE DOCUMENT. RIGHT. IS IT THE BASE STAMP THOUGH? OR IS IT THE C DASH 1 33? THAT'S THE QUESTION? I, I JUST WANTED CLARIFICATION ON THE RATE FILING. SO TH THE, THE, THE, THE, THE C. OKAY. SO FOR, TO BE CLEAR THAT ON THE, THE LAST WORKSHEET WE WERE TALKING ABOUT THAT QUANTIFIES, THE, UM, THE CAP PROGRAM, THIS IS SHOWN ON THE SCREEN. IT'S C DASH 3 0 9 IN THE UPPER RIGHT-HAND CORNER. AND IT'S, BUT THE BOTTOM LEFT-HAND BOTTOM RIGHT-HAND CORNER IS GOT PAGE 3, 3, 1 ON IT. NO, THE LAST ONE, REMEMBER THE OTHER ONE IS 3, 3, 3. OH, THIS 1, 3, 3, 1 3. YEAH. THEY'RE VERY CLOSE TO EACH OTHER. GET INTO THAT AREA AND JUST FLIP UP YOUR PAGES. ALL RIGHT. THANKS GRANT. UM, THOSE ARE ALL THE QUESTIONS THAT WE'VE RECEIVED. IS THERE ANYONE IN THE AUDIENCE WHO HAS OTHER QUESTIONS THAT YOU'D LIKE TO ASK TODAY? ALL RIGHT. IT'S 10 30. UM, WHY DON'T WE TAKE A SHORT BREAK, SAY 10 MINUTES. I HAD MENTIONED EARLIER THAT WE WOULD LOOK OVER THE QUESTIONS THAT WE RECEIVED FROM THE ICA AND FROM, UH, TO WR, UH, AND SEE IF WE CAN ADDRESS ANY OF THOSE NOW, OTHERWISE, UM, WE'LL NEED TO EXIST THAT FOLLOW UP, UM, AFTER THIS. SO, UM, LET'S COME BACK AT, AT 10 40, SINCE WE RECEIVED LATE YESTERDAY FROM THE ICA, UM, THE ADDITIONAL QUESTIONS FOR SECOND TECHNICAL CONFERENCE, AND WE DON'T HAVE ANSWERS TO ALL OF THEM, BUT WE DO HAVE ANSWERS TO A FEW OF THEM. UM, LET'S START WITH THE FIRST QUESTION, WHICH IS LISTED AS QUESTION 17. IT ASKS FOR, UM, WITH REGARD TO A'S RESPONSE TO ICA TWO DASH TWO, CAN WE GET A BREAKOUT OF DEBT SERVICE FOR ELECTRIC PLANTS AND NON-ELECTRIC PLANS FOR 2021 AND 2022 GRANT? UH, YEAH. SO THE WORK PAPER THAT'S ON THE SCREEN NOW, WE'RE PAPER, SEE 3, 1, 1 LISTS, TOTAL, UM, DEBT SERVICE ON THEIR CRUEL BASIS, UH, FOR 2022 AND 2021, UM, ON THAT WORKSHEET. AND YOU'LL SEE THAT THERE'S A PORTION THAT'S NOT ELECTRIC. UM, AND THEN EVERYTHING ELSE IS, IS, IS ELECTRIC. SO, UM, THIS WORKSHEET SHOULD BE RESPONSIVE TO [01:20:01] THE QUESTION AS WE UNDERSTAND IT. ALRIGHT. UM, AND THEN, UM, THE SECOND QUESTION, UM, NUMBER 18, WITH REGARD TO A'S RESPONSE TO ICA TWO DASH THREE, PROVIDE THE PERCENTAGES BASED ON REVENUES NET OF POWER SUPPLY COSTS HAS SHOWN ON APPENDIX C PAGE CDR 69. I THINK WE, WE NEED A CLARIFICATION ON THAT. UM, MONICA, DO YOU WANT TO SPEAK TO IT? SURE. SO I WANTED TO MAKE SURE TO NOTE THAT WE ALSO REMOVED DISTRICT COOLING IN THAT APPENDIX. SO, UM, DO YOU ALSO WANT US TO REMOVE, UM, DISTRICT COOLING AS WELL AS POWER SUPPLY EXPENSE, JOHN, OR CLARENCE OR DAVE? UM, DID YOU HEAR THAT? UH, AND CAN YOU HELP, UH, CLARIFY WHAT YOU'RE LOOKING FOR? IF CLARENCE, YOU MAY BE ON MUTE ACTUALLY, YOU'RE ALL ON MUTE, BUT I'M NOT SURE IF SOMEONE'S ATTEMPT LOOKS LIKE I WISH I COULD GIVE THE ANSWER, ACTUALLY. I DON'T KNOW IF DAVE IS ON RIGHT NOW OR NOT, BUT IF, UH, UH, HE WOULD HAVE HIS QUESTION AND THEN HE WOULD HAVE THE ANSWER TO THAT. SO I'M NOT SURE THE ANSWER. CAN YOU HEAR ME? HELLO? YEAH. YES. UH, YEAH, I JUST WANT TO PUT IT ON A CONSISTENT BASIS, CONSISTENT BASIS WITH, UH, THE WAY, UH, IT WAS DONE, UH, THE, UH, SCHEDULE TO WHICH I REFERRED. SO IF THOSE, UH, DISTRICT COOLING REVENUES WERE REMOVED FROM THE, UH, REVENUE BASE THERE, I WOULD LIKE IT REMOVED FROM THE, UM, REVENUE BASE, UH, UH, UH, FOR THE PURPOSE OF COMPARING THE, UM, THE PAYMENTS TO THE REV. THANK YOU. WE'LL DO. ALRIGHT. THANKS, DAVE. UM, QUESTIONS, 19 20 21, WE'RE GOING TO NEED ADDITIONAL TIME TO ANSWER, UH, 22, THAT QUESTION ASKED FOR, WITH REGARD TO AES RESPONSE TO ICA TWO DASH EIGHT. WHY ARE THE INCREASES IN THE BUDGET IN HEAVY EQUIPMENT? LEASE EXPENSES NECESSARY ARE THE AMOUNTS FOR FISCAL YEAR 2023 THROUGH 2025 CONTRACTUAL OBLIGATIONS. UH, MARTIN DOMBROSKI IS HERE, UH, AND CAN SPEAK TO THAT. OKAY. MARK AND BRAS YOU, THE CHIEF FINANCIAL OFFICER, UH, ALSO RESPONSIBLE FOR A FLEET OPERATIONS OR AUSTIN ENERGY. SO, UM, SEVERAL YEARS AGO, AUSTIN ENERGY BEGAN TO USE, UM, ALL TECH LEASES FOR CERTAIN HEAVY EQUIPMENT VEHICLES, UH, FOR A COUPLE OF REASONS. THE FIRST WAS THAT, UM, WE WERE NOT ABLE TO PROVIDE MAINTENANCE TO, UH, THE, THAT HE ON LIKE, SUCH AS, UM, UH, HYDRAULICS ON BRONTO'S AND THINGS. AND SO BY, BY LEASING THESE VEHICLES THROUGH ALLTECH, UH, IT COMES WITH MAINTENANCE. IN ADDITION, IT COMES OFF REPLACEMENT VEHICLES SO THAT WHEN A VEHICLE DOES GO DOWN FOR AN EXTENDED PERIOD, WE'RE PROVIDED WITH A VEHICLE WHO USED OR IN THE INTERIM, AN AD ADDRESSES BOTH RELIABILITY AND, UM, RESPONSE TIMES FOR OUR CUSTOMERS. AND, UH, THE COSTS ARE, UM, WE HAVE A CONTRACTUAL OBLIGATION AND MULTI-YEAR LEASE. I BELIEVE IT'S A FIVE-YEAR LEASE. AND THOSE COSTS DO HAVE ESCALATORS AS WELL AS ADDITIONAL VEHICLES THAT WE MIGHT ACQUIRE IN THE FUTURE. ALRIGHT, THANKS, MARK. UH, THE NEXT QUESTION IS QUESTION 23 WITH REGARD TO A'S RESPONSE TO ICA TWO DASH NINE. EXPLAIN WHY THE INCREASE IN STAFFING IS NECESSARY WITH REGARD TO ATTACHMENT ICA TWO DASH NINE B WHAT ARE THE PRESENT NUMBER OF EMPLOYEES FOR EACH OF THE LINE ITEMS? UH, JERRY GALVIN. SURE. SO, SO THE INCREASE IN THE STAFFING CONTRACT, UH, THE DOLLAR INCREASE HAS TO DO WITH THE BIGGEST DRIVER IS JUST THE LOCAL LABOR MARKET. UH, WE USED TO PAY 11 BUCKS FOR A CALL CENTER REP NOT NOT MANY YEARS AGO. UM, RIGHT NOW I THINK MCDONALD'S IS PAYING $17 AN HOUR UP TO RIGHT. THAT'S JUST THE LABOR MARKET. AND IT'S REALLY THE BIGGEST DRIVER IS WAGES AND INCENTIVE FOR THE EMPLOYEES, FOR THE STAFF. ALL RIGHT, THANKS JERRY. UM, THEN QUESTION 24 WITH REGARD TO A'S RESPONSE TO ICA TWO DASH 11, PROVIDE DOCUMENTATION SUPPORTING THE CONTRACT THAT THE FAYETTE POWER PROJECT ASSOCIATED WITH THE FEDERAL TAX CREDIT THAT EXPIRED DECEMBER 31ST, 2021, AND THE AMOUNT OF 3,000,730 1005 [01:25:01] 32. WHY DOES AUSTIN ENERGY NOT EXPECT TO COLLECT PAYMENT ON THE DISPUTED BILL FOR POLE ATTACHMENTS? MONICA. OKAY. SO AS FAR AS THE FE CONTRACT, I'LL HAVE TO VALIDATE THAT THAT'S SOMETHING THAT WE CAN ACTUALLY SHARE. UM, SO I'LL GET BACK TO YOU ON THAT. AND THEN FOR THE DISPUTED BILL POLE ATTACHMENTS, THAT'S ACTUALLY THE SAME, UH, RELATED TO THE SAME ITEM AS NUMBER 17 ABOVE. UM, ESSENTIALLY WE HAD AN INFRASTRUCTURE BILL WITH ONE CUSTOMER WHERE THE BILLING AMOUNTS ARE BEING DISPUTED AND WE HAD TO ALLOW ON THOSE AMOUNTS. ALL RIGHT. THANK YOU, MONICA. AND THEN, UM, THE LAST QUESTION, UM, WE'RE GOING TO NEED SOME ADDITIONAL TIME TO RESPOND TO THAT ONE AS WELL. UM, OBVIOUSLY, UH, AND THEN, UM, AS I NOTED EARLIER, WE RECEIVED LATE YESTERDAY, SOME QUESTIONS FROM, UM, TO WR, UM, LINETTA W WHAT ARE YOU GOING TO HAVE TO FOLLOW UP ON THESE? AND I APOLOGIZE, BUT WE JUST, AND FRANKLY, WE TALKED ABOUT SOME OF THEM A MOMENT AGO, BUT I JUST DIDN'T FEEL COMFORTABLE AND NEITHER DID I ANSWER THEM ON THE FLY WITHOUT REALLY THOROUGHLY READING THROUGH THEM. AND, UM, SO WE'LL DO THAT. AND SO, UM, OKAY. UM, ANY OTHER QUESTIONS FROM ANYONE ELSE IN THE AUDIENCE? YES, CYRUS, UM, MORE OF A CONFIRMATION, ALL OF THE QUESTIONS THAT YOU DISCUSSED HAVING RECEIVED, WE WILL SEE IN THE CITY OF CLERKS, THE QUESTIONS FROM THE PARTICIPANTS. CAUSE I DON'T, I DON'T SEE THEM YET. THE ONES FROM LINETTA THEY'LL ALL BE THERE. OKAY. SO THEY SHOULD, THEY SHOULD SHOW UP SOON. YEAH. SOME, SOME FILED THEM, SOME JUST SEND AN EMAIL, UM, AS I NOTED, WE WILL FOLLOW UP, UH, AND OF COURSE WE'LL PROVIDE YOU WILL, YOU WE'LL FOLLOW YOU. WE'LL MAKE SURE THOSE GO INTO THE CITY. JUST SO ALL OF US CAN SEE THE QUESTIONS SINCE WE HAVE A LIMITED NUMBER OF QUESTIONS. WE DON'T WANT TO ASK THE SAME QUESTIONS THAT HAVE BEEN ASKED. YES. UM, AND THEN ALL OF THE ANSWERS YOU'VE PROVIDED ORALLY YOU'LL, YOU'LL DO SOME SORT OF WRITTEN TODAY. NO, THAT WAS NOT OUR PLAN. OUR PLAN WAS TO PROVIDE ORAL RESPONSES TODAY, AND THEN IF WE HAVE TO PROVIDE FOLLOW UP, WE WOULD, WE WILL SUBMIT THOSE WELL, THOSE OF US WHO, UM, MIGHT BE LIKE CHECKING SOCCER WEBSITES AND NOT PAYING ATTENTION FULLY, WILL YOU BE, UM, WE'LL, YOU WILL, THERE'LL BE SOME SORT OF, UM, WRITE UP OF THIS JUST SO WE KNOW. NO. OKAY. YEAH. SO, I MEAN, AS AN EXAMPLE, THE WORK PAPERS YOU'VE SHOWED AS AN ANSWER TO QUESTIONS. YOU'RE NOT GOING TO FILE THOSE ANYWHERE AS AN ANSWER TO THOSE QUESTIONS AND THE PLAN, THE PLAN WAS FOR BOX TO GET RESPONSES AND, AND Y'ALL WERE RIGHT DOWN, OR, I MEAN THAT, THIS IS THE TIME TO BE LISTENING TO THE RESPONSES THAT'S OF COURSE, MOST OF THEM WERE, YOU KNOW, FROM THE FILING PACKAGE, RIGHT? YEAH. THE COST OF SERVICE AND THE NARRATIVE. AND, UM, I THINK IT WOULD BE HELPFUL FOR SOME OF US TO, UM, TO THE EXTENT YOU'RE RECORDING THIS MEETING, TO HAVE THAT AVAILABLE TO, I DON'T KNOW IF THAT'S POSSIBLE, UM, IF WE, IT AT THE VERY LEAST SO THAT WE COULD REQUEST THAT, CAUSE THERE ARE SOME, YOU KNOW, I SAW THAT, YOU KNOW, ADD FROM THE LOCAL MANUFACTURERS JUST JOINED. HE MAY NOT, HE MAY NOT HAVE, I DON'T KNOW THAT HE'S HERE OR HAS A REPRESENTATIVE HERE. HE MAY WANT TO KNOW THE ANSWERS TO THESE QUESTIONS THAT WERE PROVIDED ORALLY, UM, FOR THOSE, YOU KNOW, UH, YEAH. SO, UM, MAYBE WE CAN MAKE THAT REQUEST TO HAVE A COPY MADE AVAILABLE OF THE, OF THE RECORDED MEETINGS SO THAT WE CAN GO BACK AND ANSWER. IF WE FORGOT TO WRITE DOWN C DASH ONE, THAT'S THREE DOUBT, ONE OR WHATEVER. UH, LET ME CHECK WITH THEM. OKAY. UM, ANYTHING FURTHER FROM ANYONE? ALL RIGHT. THEN I APPRECIATE EVERYONE'S, UM, ATTENDANCE HERE TODAY. AS I NOTED, WE WILL FOLLOW UP ON, UM, THE QUESTIONS THAT WE INDICATED, UH, I WOULD ASK, UM, FOR THOSE THAT SUBMITTED QUESTIONS, SEND ME AN EMAIL, UH, AND LET ME KNOW WHAT YOU THINK WE'RE SUPPOSED TO BE PROVIDING, UM, UH, FOLLOWING UP AND I CAN COMPARE IT TO OURS THAT WOULD HELP MAKE SURE THAT THERE'S NOT A DISCONNECT AND THAT WE DON'T GET A DELAY IN GETTING BACK TO YOU. 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.