Link

Social

Embed

Download

Download
Download Transcript

OKAY,

[00:00:01]

LET'S SEE.

THEN I WILL CALL THIS MEETING TO ORDER THE

[CALL MEETING TO ORDER]

ELECTRIC UTILITY COMMISSION.

IT'S 6:07 PM.

AND WE ARE IN THE SHUDI FATH CONFERENCE ROOM AT THE AUSTIN ENERGY HEADQUARTERS IN ATTENDANCE FOR THE RECORD WE'VE GOT IN-PERSON COMMISSIONERS, REED AND YONKER, AND THEN VIRTUALLY WE HAVE COMMISSIONER VIRTUAL TRESTLE AND TUTTLE.

THANKS EVERYONE FOR ATTENDING TONIGHT'S MEETING.

SORRY FOR THE TECHNICAL DIFFICULTIES.

UM, SO WE'RE RUNNING JUST A LITTLE BIT LATE, BUT WE HAVE A RELATIVELY SHORT AGENDA TONIGHT.

UM, SO LET'S GET STARTED WITH CITIZEN COMMUNICATIONS.

[PUBLIC COMMUNICATION: GENERAL]

I BELIEVE WE HAVE, UM, MR. BEULAH HERE.

GOOD EVENING COMMISSIONERS.

UH, MY NAME IS DALE BEULAH AND I WOULD LIKE TO MAKE SOME SUGGESTIONS ON HOW AUSTIN ENERGY COULD BE PERHAPS MORE AGGRESSIVE IN SAVING ENERGY AND MONEY WHILE HELPING OUR CLIMATE.

I HOPE THAT YOU INDIVIDUALLY HAVE BEEN RECEIVING SOME OF THE ARTICLES THAT I PERIODICALLY SEND OUT ABOUT THESE ISSUES.

FIRST TONIGHT, I'D LIKE TO TALK ABOUT STORAGE.

A BATTERY STORAGE HAS BEEN SUGGESTED MANY TIMES, BUT AUSTIN ENERGY IS REALLY JUST SORT OF PUTTING HIS TOE IN THE WATER WHEN IT COMES TO STORAGE, ESPECIALLY COMPARED TO LIKE THE STATE OF CALIFORNIA.

UH, MY, UH, ARTICLE SAID, WHY NOT USE GRAVITY IN AN ARTICLE THAT I SENT YOU RECENTLY? IT SEEMS THAT BY PUTTING HUGE WEIGHTS ON TALL STRUCTURES AND RAISING THEM OVERNIGHT WHEN WIND POWER IS CHEAP AND THEN RELEASING THEM DURING PEAK LOAD COULD, SHOULD BE CONSIDERED.

UH, MY THOUGHT WAS ELEVATOR SHAFTS IN ALL OF OUR SKYSCRAPERS WILL BE A GREAT PLACE TO TRY OUT THIS, UH, TECHNOLOGY.

UH, THE SECOND, UH, ARTICLE WAS ON ELECTRIFICATION IN A RECENT ARTICLE THAT I SENT YOU.

IT SEEMS THAT WE HAVE A LONG WAY TO GO TO ELECTRIFY OUR TRANSPORTATION GROUND TRANSPORTATION AT OUR AIRPORTS.

UH, ELECTRIC SHORT HAUL COMMERCIAL ROUTES ARE STATED SLATED TO BEGIN IN 2026.

AND MY CONCERN IS THAT IS AUSTIN, UH, AIRPORT REALLY READY FOR THIS WITH HIGH SPEED CHARGING FOR THESE ELECTRIC AIRCRAFT? UH, THE THIRD ARTICLE I WANTED TO MENTION WAS ON CURBSIDE CHARGING IN A RECENT ARTICLE THAT I SENT.

UH, IT SEEMS THAT SEATTLE IS INSTALLING CURBSIDE EVIE CHARGING ON RESIDENTIAL STREETS FOR FOLKS THAT HAVE TO DO ON STREET PARKING, THE RESIDENTS PLAY A FAT FLAT FEE, UH, WHICH IS SORT OF IN LINE WITH OUR CURRENT PLUGIN PARTNERS, UH, SITUATION THEY CAN PLUG IN AT NIGHT CHARGE THEIR ELECTRIC VEHICLES.

AND I THINK WE SHOULD AT LEAST DO SOME TYPE OF A PILOT PROGRAM TO SEE IF THAT WOULD WORK HERE IN AUSTIN.

AND THE LAST THING I WANTED TO MENTION WAS ROOFTOP SOLAR, UH, HATE TO BEAT A DEAD HORSE.

I MENTIONED, I'VE MENTIONED THIS ALMOST EVERY TIME.

I'VE SPOKEN TO THE COMMISSION, UH, WHEN IT COMES TO LOW-HANGING FRUIT, THE THOUSANDS OF ACRES OF WAREHOUSE ROOFTOPS IN AUSTIN ARE REALLY BEGGING FOR ROOFTOP SOLAR.

I THINK IT WILL SAVE MONEY TO THE WAREHOUSES AND PROVIDE GENERATION WITHOUT PAYING THE TRANSPORTATION COSTS THAT AUSTIN ENERGY HAS TO PAY FROM THE CRUISE LINES IN A RECENT ARTICLE THAT I SENT.

UM, IT'S CLEAR THAT HAWAII IS MOVING IN THAT DIRECTION.

THE ISLAND OF KAUAI NOT PRODUCE A 70% OF ITS ELECTRICITY FROM RENEWABLE SOURCES, AND SOON TO BE A HUNDRED PERCENT.

ONE THIRD OF THE HOUSES IN HAWAII NOW HAVE ROOFTOP SOLAR, WHICH IS TWICE THE RATE OF COVERAGE THAT CALIFORNIA HAS.

AND NOW WITH NATURAL GAS APPROACHING $10, IT SEEMS THAT WE SHOULDN'T MOVE MORE QUICKLY TO USE THIS SOURCE OF ENERGY THAT ONCE IT'S INSTALLED IS FREE.

SO THANK YOU FOR LISTENING TO MY GRIPES.

THANK YOU, MR. BIELA.

ANY OTHER CITIZENS COMMUNICATIONS.

THANK YOU.

ALL RIGHT.

I'VE SAID THIS BEFORE, BUT UM, MR. BEULAH, CAN YOU MAKE SURE YOU SEND AT, AT ANYTHING YOU WRITE OR WANT US TO GET, UM, CENTER LIAISON JUST TO MAKE SURE WE ALL GET IT BECAUSE I PERSONALLY SOMETIMES MISS EMAILS, BUT IF IT COMES, UH, YOU KNOW, IF IT COMES FROM OUR LIAISON, I TEND TO PAY MORE ATTENTION.

I THINK IT'D BE A GOOD IDEA TO JUST, UH, YEAH, AND THEN SHE CAN DISTRIBUTE IT AND THAT WAY WE, WE ALL MAKE SURE WE GET IT.

THANK YOU.

UH, MOVING ON TO NEW

[NEW BUSINESS – CONSENT]

BUSINESS.

UH, ARE THERE ANY COMMISSIONERS THAT WOULD LIKE TO TAKE UP ITEMS NUMBER TWO THROUGH FIVE HEARING

[00:05:01]

NONE.

I'LL ENTERTAIN A MOTION TO APPROVE ITEM NUMBERS TWO THROUGH FIVE.

SO MOVED.

THANK YOU, COMMISSIONER CHAPMAN.

IS THERE A SECOND? SECOND.

THANK YOU.

COMMISSIONER.

READ ALL THOSE IN FAVOR.

AYE.

AYE.

ALL THOSE OPPOSED.

ALL RIGHT.

MOTION PASSES ITEMS. NUMBER TWO THROUGH FIVE ARE APPROVED NOW, MOVING ON TO, OH, EXCUSE ME.

GO AHEAD.

OH, I ALWAYS FORGET THAT.

I DIDN'T PUT THAT ON MY, UH, HOT, WE SKIPPED IT, UH, APPROVAL OF THE

[1. Approve minutes of the May 9, 2022 meeting.]

MINUTES.

EXCUSE ME.

UH, THE LAST MONTH'S MEETING, MAY I BELIEVE IT WAS THE NINTH.

LET'S SEE.

OKAY, GREAT.

UM, MAY 9TH, UH, MINUTES WERE CIRCULATED IN YOUR PACKET ON FRIDAY, ALONG WITH THE MEETING MATERIALS.

ARE THERE ANY CHANGES? I THINK, UM, I HAD, UH, I MIGHT REQUEST A CHANGE.

MR. BULOW WAS, UM, INTERESTED IN HIS COMMENTS BEING REFLECTED ON THE MINUTES.

UM, I KNOW THAT THERE IS, THERE WAS ONE SPEAKER, BUT IT MIGHT BE NICE TO HAVE LIKE A SENTENCE ON THE TOPIC AT LEAST THAT HE SPOKE ON TO ENSURE THAT THAT'S REFLECTED.

I DON'T HAVE ANY PROPOSED LANGUAGE.

MAYBE THAT'S SOMETHING THAT THE, UM, OUR LIAISON COULD GO BACK AND PROPOSE FOR US.

YES, WE'LL REVIEW THE TAPE.

OKAY.

THANK YOU.

THANK YOU.

COPIES TO ROBIN.

SHE GOT A COPY OF MY BAD.

OKAY, GREAT.

ALL RIGHT.

SO WE'LL, WE'LL TAKE THAT UP NEXT MEETING IF THAT, THAT WORKS FOR FOLKS.

ALL RIGHT.

LET'S MOVING ON TO

[6. Base Rate Review Process and Community Outreach Update]

STAFF BRIEFINGS AND REPORTS, ITEM NUMBER SIX, BASE RATE REVIEW PROCESS AND COMMUNICATION OUTREACH OR COMMUNITY OUTREACH, UH, LOOKS LIKE MS. COOPER'S HERE TO PRESENT ON BEHALF OF AUSTIN ENERGY.

UH, GOOD EVENING.

AND WHILE THE SLIDES ARE GETTING PULLED UP, I JUST WANT TO TAKE A QUICK MOMENT TO INTRODUCE EVERYONE TO AMY EVERHART, WHO IS OUR NEW DIRECTOR, LOCAL GOVERNMENT ISSUES.

UH, SHE'S REPLACING JEFF WEISS WHO RETIRED RECENTLY IF YOU'LL RECALL.

AND AMY COMES TO US MOST RECENTLY FROM COUNCIL MEMBER ELLIS'S OFFICE.

THEN PRIOR TO THAT HAD BEEN AT THE MAYOR'S OFFICE IN A VARIETY OF OTHER CITY HALL PLACES.

SO AGAIN, WELCOME.

I KNOW YOU'LL BE WORKING CLOSELY WITH HER AND WE'RE GLAD TO HAVE HER ON BOARD.

ALRIGHTY, I'LL GO AHEAD AND GET STARTED HERE IF YOU'LL HIT THE NEXT SLIDE.

ALL RIGHT.

I JUST WANTED TO, UM, TAKE A MOMENT THIS EVENING TO UPDATE YOU ON WHERE WE ARE IN THE BASE RATE REVIEW PROCESS AND SHARE SOME DETAILS ABOUT OUR COMMUNITY OUTREACH EFFORTS.

THIS WAS A PRESENTATION GIVEN TO THE UOC LAST WEEK.

WE TYPICALLY WE DO THAT IN REVERSE ORDER, BUT JUST WITH THE WAY THE TIMING IT WORKED OUT, UM, UH, I DID THE UOC BRIEFING FIRST.

SO THIS SLIDE, UH, IS, IS KIND OF SHOWS YOU A VERY DETAILED TIMELINE ON WHERE WE ARE IN THE BASE RATE REVIEW PROCESS.

UH, AND I WILL KNOW WE'LL GET TO SOME UPDATES IN IT AND JUST MOMENTARILY.

UH, BUT, UH, BASICALLY AS YOU'LL SEE IN, ON APRIL 18TH, WE FILED THE BASE RATE FILING PACKAGE AND WE ENGAGED IN COMMUNITY OUTREACH FOR THE NEXT MONTH.

AND AS YOU CAN SEE, THERE'S A LOT OF ACTIVITY GOING ON, UH, OVER NEXT FEW MONTHS AS WE CONTINUE THIS PROCESS.

AND IT IS A VERY BUSY TIME FOR AUSTIN ENERGY AND THE PARTICIPANTS, UH, FORMAL PARTICIPANTS, UH, HAVE JUST FINISHED, UH, ENGAGING IN DISCOVERY AND WILL BE FILING POSITION STATEMENTS NEXT WEEK.

SO, UH, RIGHT BEFORE OR RIGHT AFTER THE HOLIDAY, I THINK THE MEMORIAL DAY HOLIDAY, UH, THE EXTENSION TO, UH, REVISE THE PROCEDURAL SCHEDULE WAS REQUESTED BY SEVERAL PARTICIPANTS.

AND THE REVISED SCHEDULE WAS FILED ON JUNE 3RD.

AND THAT'S WHY, UH, THIS SLIDE, WHICH WAS PREPARED FOR THE UFC MEETING, DOESN'T REFLECT SOME OF THOSE UPDATES, UH, BUT ULTIMATELY THE INTEGRITY OF THE SCHEDULE AND ITS KEY DATES BEGINNING WITH THE FINAL CONFERENCE, WHICH WE CAN ALSO CALL THE HEARING ON THE MERITS THAT HAS NOT CHANGED.

UH, MANY OF THE DATES TOWARDS THE END COULD NOT BE REMOVED DUE TO EXISTING COMMITMENTS, PARTICULARLY THAT WITH THE IMPARTIAL HEARING EXAMINER.

UH, BUT BASICALLY, UH, WE DID ACCOMMODATE, UH, SOME OF THE PARTIES REQUESTS.

AND YOU'LL NOTICE THAT AGAIN.

UH, I BELIEVE THIS PROBABLY I CAN'T READ IT VERY WELL FROM HERE, BUT, BUT, UH, THE, THE PARTIES, UH, ORIGINAL POSITION STATEMENT

[00:10:01]

WAS DUE THIS WEDNESDAY, BUT THAT HAS BEEN EXTENDED TO THE 22ND.

UH, AND THEN THERE WILL BE A DISCOVERY PERIOD FOR THAT AUSTIN ENERGY WILL THEN FILE.

IT'S A REBUTTAL AND WE WILL CONTINUE TO, UH, HAVE SETTLEMENT DISCUSSIONS AND THE, THE FINAL, UH, HEARING THE WEEK STARTING JULY 11TH.

AND THERE WILL BE PARTICIPANT CLOSING BRIEFS, AUSTIN, ENERGY'S CLOSING BRIEF ON AUGUST 1ST.

AND THEN BY AUGUST 31ST, WE ARE EXPECTING THE RECOMMENDATION FROM THE INDEPENDENT HEARING EXAMINER.

AND THEN AS YOU CAN SEE ON THE SLIDE AGAIN, I THINK WE'VE SHOWN THIS TO YOU BEFORE THAT THE EUC WILL CONSIDER THE HEARING EXAMINERS RECOMMENDATION, UH, IN ITS OCTOBER MEETING.

AND THEN IN NOVEMBER, COUNCIL WILL SET A PUBLIC HEARING DATE FOR NOVEMBER 17TH.

AND AGAIN, OUR GOAL HERE IS TO HAVE THE NEW RATES IN PLACE BY JANUARY 1ST, 2023.

SO NEXT SLIDE PLEASE.

QUICK QUESTION ON THE TIMELINE, UH, IF, UH, COUNCIL, UH, OR THE PARTIES AND EVENTUALLY COUNCIL NEED ADDITIONAL TIME.

IS THERE ANYTHING MAGIC ABOUT JANUARY ONE THAT, THAT THEY, IF THEY NEED MORE TIME THAT THEY COULD PUSH IT BACK? WELL, UM, CERTAINLY THAT'S THE GOAL.

WE'RE, WE'RE OBVIOUSLY IN A DEFICIT, UH, UH, SITUATION AND WE'D LIKE TO START REVIEWING OR RECUR RECOVERING THE NEW RATES AS SOON AS POSSIBLE.

ALSO, UM, THE FURTHER YOU GET INTO THE NEW YEAR, THEN THE CLOSER YOU ARE IN A LEGISLATIVE SESSION.

SO THAT'S SOMETHING ALSO TO BE MINDFUL OF AS WELL.

ALL RIGHT.

OOPS.

I THINK I LOST THE NEXT SLIDE THERE.

OKAY.

SO THIS SLIDE SHOWS YOU THE LIST OF THE FORMAL PARTICIPANTS IN THE BASE RATE REVIEW.

I THINK WE'VE UPDATED YOU PREVIOUSLY THAT, YOU KNOW, OUR, OUR, UH, UH, CUSTOMERS HAVE THE OPTION TO PARTICIPATE FORMALLY.

UH, AND, AND THIS IS THE LIST OF PARTIES THAT ARE PARTICIPATING AS FORMAL PARTICIPANTS IN THE PROCESS.

SO NEXT SLIDE.

OH, EXCUSE ME.

I THINK COMMISSIONER RAID HAS A QUESTION.

I DIDN'T SEE THAT.

YES.

IT'S MORE OF A COMMENT.

I WANT FOLKS TO KNOW THAT OBVIOUSLY I WORK FOR SIERRA CLUB, UM, AND I HAVE PUT IN A REQUEST TO AUSTIN ENERGY TO LIAISON JUST TO, TO SEE IF THERE'S ANYTHING I SHOULD BE DOING, BECAUSE I'M BOTH REPRESENTING SIERRA CLUB IN MY JOB, BUT I'M ALSO HERE ON THE EUC.

SO IS IT APPROPRIATE? AND WE HAVE POSITIONS IN THE RATE CASE, IS IT APPROPRIATE ONCE WE GET TO THE REVIEW FOR ME TO, YOU KNOW, IS THERE ANYTHING I NEED TO DO? DOES IT CREATING ANY KIND OF A CONFLICT OF INTEREST? SO I'M, I'M WAITING FOR, UH, SOME SORT OF FORMAL RESPONSE FROM AUSTIN LEGAL.

YES.

I CALLED UP WITH LEGAL THIS AFTERNOON, UH, TO SEE THE STATUS OF THAT REQUEST AND THEY THEY'RE TRYING TO GET SOME MEETINGS SCHEDULED.

AND SO HOPEFULLY WE'LL HAVE A RESPONSE TO YOU SHORTLY.

AND THANK YOU, UH, CYRUS FOR, YOU KNOW, I JUST INFORMING THE COMMISSION.

UM, AND, AND ALSO, UH, WE ALSO, UH, GOT CONFIRMATION THAT WHAT I WOULD CALL WHAT I SAID, LOOSELY EX PARTE COMMUNICATIONS.

IT DOESN'T APPLY.

SO WE AS COMMISSIONERS CAN, UM, INTERACT, UM, AND DISCUSS THE RATE CASE ISSUES WITH INDIVIDUALS AND INTERVENERS, AND THAT'S NOT PRESENTING ANY PROBLEM, UM, OUR ROLE ON THE COMMISSION.

SO, UM, THAT, JUST TO WRAP THAT UP TOO, AS WELL.

ALL RIGHT.

UM, NEXT COUPLE OF SLIDES, ONE MORE.

UH, SO TO PROMOTE COMMUNITY AWARENESS OF THE BASE RATE REVIEW, WE ENGAGED IN A SERIES OF COMMUNITY MEETINGS AND, UH, YOU KNOW, THIS SLIDE SHOWS THE EXTENSIVE COMMUNITY OUTREACH THAT WE ENGAGED IN.

AND WE USED A VARIETY OF MEDIUMS TO COMMUNICATE TO OUR CUSTOMERS ABOUT THE UPCOMING MEETINGS.

WE USE THE AUSTIN ENERGY WEBSITE, CUSTOMER EMAILS, SOCIAL MEDIA, LOCAL PRESS, AND OTHER MEANS TO ALERT THE COMMUNITY ABOUT THE BASE RATE REVIEW AND OPPORTUNITIES TO PROVIDE FEEDBACK.

WE ALSO POSTED FLYERS POSTERS AND HAD PAPER FEEDBACK FORMS AND LIBRARIES AND UTILITY CUSTOMER SERVICE CENTERS.

THERE WERE BILL INSERTS ON BILL MESSAGING, WHICH IS ACTUALLY A NOTE ON THE BILL.

AND WE ALSO RELEASED NEWS RELEASES AS WELL AS PROVIDING INTERVIEWS TO NEWS MEDIA IN BOTH ENGLISH AND IN SPANISH.

NEXT SLIDE.

SO HERE'S A SAMPLE OF THE RESIDENTIAL CUSTOMER EMAIL.

I REALIZE THIS IS QUITE A BUSY EMAIL, AND IT'S DIFFICULT TO READ FROM YOUR VANTAGE POINT.

UH, BUT IT SHOWS THAT THE CUSTOMER OUTREACH, WE BOTH A COMBINED EDUCATION FOR CUSTOMERS EXPLAINING, UH, THE, WHAT THE BASE RATE REVIEW WAS SEEKING AND INFORMED THEM ON HOW THEY COULD PARTICIPATE

[00:15:01]

AND ATTEND COMMUNITY OUTREACH MEETINGS.

NEXT SLIDE.

AND THIS IS A SAMPLE OF THE ON-BILL MESSAGING AND THE UTILITIES NOW, BILL INSERT THAT WAS PROVIDED TO ALL CUSTOMERS.

AND THIS SLIDE ALSO SHOWS, UH, THE CITY CLERK'S WEBSITE, WHERE THERE IS DETAILED INFORMATION ON THE BASE RATE REVIEW AND WHERE THE PUBLIC CAN ACCESS ALL OF THE FILINGS MADE BY AUSTIN AND ENERGY AND ALL OF THE PARTICIPANTS IT'S ALL UP THERE ON THE INTERNET.

NEXT SLIDE.

WE ALSO ESTABLISHED A SPEAK-UP AUSTIN PAGE, WHICH PROVIDED MULTIPLE LANGUAGE TRANSLATIONS FOR OUR CUSTOMERS, INCLUDING ENGLISH, SPANISH, SIMPLIFIED CHINESE, ARABIC, VIETNAMESE, AND KOREAN.

WE ALSO HAD INTERPRETERS AVAILABLE AT EACH VIRTUAL AND IN-PERSON COMMUNITY MEETING UPON REQUEST.

NEXT SLIDE.

SO WE HOPE FIVE VIRTUAL AND THREE IN-PERSON COMMUNITY MEETINGS, 45% OF THE PEOPLE THAT REGISTERED ATTENDED.

AND WE VARIED THE TIMES AND LOCATIONS TO PROVIDE MULTIPLE OPTIONS FOR OUR CUSTOMERS TO ATTEND.

SOME OF THE MEETINGS WERE IN THE EVENING, SOMEWHERE ON A WEEKEND, UH, SOME DURING THE DAY NEXT SLIDE.

AND WE ARE CURRENTLY STILL, UH, ACCEPTING CUSTOMER FEEDBACK THROUGH SPEAK-UP AUSTIN, UH, IS THE DATE OF THIS SLIDE.

YOU CAN SEE THAT WE HAVE RECEIVED FEEDBACK FROM 264 COMMONERS.

I ACTUALLY THINK THAT NUMBER IS HIGHER.

I FEEL LIKE I, I TOLD, UH, COUNCIL LAST WEEK THAT IT WAS OVER 300, UM, AND THIS FEEDBACK HAS NOW BEEN FILED, UH, IN, IN THE, UH, THE DOCKET ON THE CITY CLERK'S WEBSITE, SO THAT IT CAN BE AVAILABLE TO THE IMPARTIAL HEARING EXAMINER, THE INDEPENDENT CONSUMER ADVOCATE, UH, AND ALL OF THE PARTICIPANTS AS WELL.

WE JUST EMAILED THE LINK TO THE EUC MEMBERS THIS AFTERNOON, SO THAT YOU CAN TAKE A LOOK DIRECTLY AND, AND REVIEW THE, THE OPEN-ENDED FEEDBACK THAT WE RECEIVED FROM CUSTOMERS.

NEXT SLIDE.

UH, IN ADDITION TO COMMUNITY MEETINGS, WE ALSO CONDUCT CONDUCTED ADDITIONAL OUTREACH TO MANY OF THE DIFFERENT STAKEHOLDER GROUPS, UH, INCLUDING OFFICIALS IN THE SURROUNDING COMMUNITIES.

WE SERVE.

WE ALSO ENGAGED OUTREACH WITH OUR CUSTOMER ASSISTANCE PROGRAM, COMMUNITY PARTNERS, THE EQUITY OFFICE, AND WE HAD TABLES AT VARIOUS COMMUNITY EVENTS, NEXT SLIDE.

AND SO FOR CUSTOMERS AND THE OTHER ORGANIZATIONS THAT MAY NOT HAVE TIME FOR A FORMAL MEETING, THERE'S A WEALTH OF INFORMATION ON OUR WEBSITE, INCLUDING ON-DEMAND VIDEOS THAT EXPLAIN THE PROCESS AND PROPOSALS.

SO WE'VE GOT THE LITTLE SHORT ANIMATED VIDEO, AND WE ADDITIONALLY DID A RECORDING OF THE ENTIRE COMMUNITY OUTREACH MEETING THAT LASTS ABOUT A HALF HOUR IS AVAILABLE FOR ANYONE TO VIEW ON OUR WEBSITE.

NEXT SLIDE.

AND SO HERE YOU WILL SEE THERE'S A SPECIFIC DEDICATED EMAIL, UH, RATE'S 20 TWENTY2@AUSTINENERGY.COM WHERE CUSTOMERS CAN SUBMIT QUESTIONS ABOUT THE BASE RATE REVIEW AND THE PROCESS.

SO AGAIN, THANK YOU FOR YOUR TIME THIS EVENING, AND I'M HAPPY TO ANSWER ANY QUESTIONS.

COMMISSIONER TRUSSELL LOOKS LIKE.

YES, THANK YOU.

UM, TAMMY, I, UH, LOOKED WITH INTEREST AT THE, UH, FEEDBACK FORMS THAT WERE SENT TO US LIKE THIS AFTERNOON.

AND MY QUESTION IS, UM, HOW IN FACT ARE THOSE TO BE TREATED BY THE INDEPENDENT HEARING EXAMINER AND THE CONSUMER ADVOCATE? ARE THEY TO, IS IT YOUR INTENTION THAT THEY BE CONSIDERED, UH, UM, IN, UH, IN THE SAME, GIVEN THE SAME WEIGHT AS, UH, STATEMENTS OF POSITION BY THE FORMER PARTIES? I THINK WE WOULD CONSIDER THOSE AGAIN, COMPARING OUR PROCESS TO THE PUC PROCESS, SIMILAR TO HOW COMMENTS ARE TREATED.

UM, AND THE PUC PROCESS.

I DON'T KNOW THAT IT'S NECESSARILY EVIDENCE, BUT, UH, YOU KNOW, IT MAY NOT MEET ALL OF THAT CRITERIA, BUT IT'S CERTAINLY SOMETHING THAT I THINK, YOU KNOW, THEY CAN, THEY CAN PERHAPS GIVE THEIR OWN AMOUNT OF WEIGHT TO, YOU KNOW, WE DON'T HAVE THE SAME STRICT, UH, PROCEDURAL RULES THAT THE PUC DOES.

AND SO, YOU KNOW, I THINK IT IS, UH, YOU KNOW, UP TO THEIR DISCRETION, HOW THEY CONSIDER IT WELL.

SO IN OTHER WORDS, YOU'RE TELLING ME THAT THE CITY IN RETAINING THE INDEPENDENT HEARING EXAMINER, DOESN'T GIVE THEM A DIRECTION ON WHAT THEY CAN CONSIDER, WHAT THE LENDER CAN CONSIDER.

I MEAN, UP WITH HIS RECOMMENDATION, WELL, THERE, THERE ARE PROCEDURAL GUIDELINES AVAILABLE, UM, THAT, THAT HAVE BEEN PROVIDED TO THE HEARING EXAMINER.

ABSOLUTELY.

BUT THEY DO NOT GO TO THE SPECIFIC LEVEL OF DETAIL, UM, IN TERMS OF, OF, OF HOW YOU MIGHT COMPARE IT TO THE PUC.

I THINK THAT, UH, THERE'S A LITTLE MORE LATITUDE IN OUR PROCESS FOR THAT.

AND IN, IN PARTICULAR, WE TRIED TO MAKE THE PROCESS MORE, UH USER-FRIENDLY FOR CUSTOMERS, AND WE'RE NOT REQUIRING ALL OF THE SAME SORT OF EVIDENTIARY CONSIDERATIONS, BUT, YOU KNOW, AGAIN, I DON'T THINK W YOU KNOW, WE DIDN'T PUT A PROCESS

[00:20:01]

IN PLACE THAT SAID, UH, WHAT LEVEL OF WEIGHT THEY HAVE TO GIVE A PUBLIC COMMENT.

OKAY.

AND, UM, I, WASN'T SUGGESTING THAT YOU DOING IT IN CONFORMANCE WITH, YOU KNOW, ADMINISTRATIVE PROCEDURE ACT HEARING.

I JUST AM TRYING TO FIGURE OUT IF THE PEOPLE WHO TOOK THE TIME TO FILL OUT THESE FORMS SHOULD HAVE ANY REALISTIC EXPECTATION THAT ANYBODY'S GOING TO REALLY TAKE THEM INTO CONSIDERATION IN REACHING A RECOMMENDATION.

WELL, I WOULD CERTAINLY THINK SO.

I MEAN, THAT'S WHY WE FILED IT, SO THAT, THAT IT'S, YOU KNOW, EVERY IT'S PART OF, PART OF THE, WHATEVER WE WANT TO CONSIDER A RECORD, UH, IN, IN THIS PROCEEDING, COMMISSIONER TRUSSELL.

ANY, ANYTHING ELSE? NO, THANK YOU.

UM, COMMISSIONER, I THINK COMMISSIONER BOWMAN HAD A COUPLE OF QUESTIONS.

THANKS, TAMMY.

UM, I'M JUST A QUESTION ON THE TIMELINE, DS, THE MEETINGS THAT WERE HELD, WHERE THEY HELD, WHAT WAS THE TIMEFRAME FOR THOSE MEETINGS? THEY WERE CONDUCTED ALL THROUGHOUT THE MONTH OF MAY.

OKAY.

WE, I BELIEVE WE HAD, I CAN'T REMEMBER HOW MANY I SAID THAT WE HAD, UM, WE, YEAH, WE HAD EIGHT MEETINGS, SO WE BASICALLY, IT WAS ABOUT TWO A WEEK FOR THE MONTH OF MAY.

SO THERE WERE MEETINGS THAT WERE, I'M JUST THINKING THROUGH THE TIMELINE WHERE THE BASE RATE FILING PACKAGE WAS PUBLISHED, APRIL 18TH AND THE DEADLINE FOR, TO PARTICIPATE WAS MAY 18TH.

SO IF A, IF A MEMBER OF THE PUBLIC CAME TO A MEETING AND DECIDED THEY WANTED TO PARTICIPATE IN THE PROCESS, THEY WOULD HAVE TO DO SO BY MAY 18.

RIGHT.

AND THAT'S WHY WE DID THEM BEFORE MAY 18TH, BECAUSE WE DIDN'T WANT ANYONE TO MISS THAT DEADLINE.

WE WANTED TO MAKE SURE THAT THEY HAD THE INFORMATION THEY NEEDED, UH, TO DETERMINE WHETHER THEY WANTED TO FILE A REQUEST TO PARTICIPATE IN.

BUT TH BUT THERE WERE SOME HELD AFTER MAY 18TH.

NO, NO.

THEY WERE ALL HELD BEFORE.

OKAY.

THAT WAS MY QUESTION.

OKAY.

THANKS.

CAN I SHOW READ, I THINK YOU HAD SOME QUESTIONS.

YEAH.

W UM, QUESTION NUMBER ONE WAS, UH, SINCE YOU STILL HAVE THAT, UH, THAT WEBSITE OPEN FOR COMMENTS, DOES THAT MEAN ALTERNATIVES? HE PLANS TO FILE ADDITIONAL COMMENTS ON JULY 1ST IN THE, IN THE CITY CLERKS.

OKAY.

YES, WE ARE KEEPING IT OPEN.

THIS WAS BASICALLY OUR FIRST BATCH.

WE WANTED TO GO AHEAD AND GET, GET EM, YOU KNOW, THE ONES WE HAD OUT THERE SO THAT, UM, YOU KNOW, THEY WAS, WEREN'T DELAYED.

SORRY.

I'VE TOLD I NEED TO SPEAK CLOSER TO THE MIC.

I APOLOGIZE IF THIS SEEMS LOUD AND EVERY ONCE A YEAR I'VE BEEN TOLD I NEED TO BE FAR AWAY FROM THE BIKE.

SO, UM, SO YES, THAT WAS THE FIRST BATCH.

WE DIDN'T WANT TO JUST SIT ON THEM TOO LONG SINCE WE HAD THEM FROM, YOU KNOW, COMMUNITY MEETINGS AND THEN FROM THE SPEAK-UP AUSTIN WEBSITE, BUT THEN WE WILL FILE THE, YOU KNOW, THE NEXT ROUND, UH, BY THAT DATE.

YEAH.

AND I, I, I DO APPRECIATE IT.

I THINK IT'S, IT'S HELPFUL TO HAVE THOSE.

UM, AND THEN THIS WAS A QUESTION MORE ON THE TIMELINE.

SO THE EUC ITSELF, WE'RE ONLY GOING TO CONSIDER THE RATES AT THAT ONE MEETING IN OCTOBER.

THAT'S RIGHT.

SO WE'LL, WE'LL REVIEW THE INDEPENDENT HEARING EXAMINER.

SO THE INDEPENDENT HEARING EXAMINER RECOMMENDATION WILL COME OUT ON SEPTEMBER 15TH.

AND THEN, SO WE'LL HAVE ABOUT A MONTH TO REVIEW IT INDIVIDUALLY, DIGEST IT.

UM, I THINK IF, IF WE HAVE QUESTIONS THAT WE WOULD LIKE, UH, AUSTIN ENERGY TO COME PREPARED TO DISCUSS THAT WE SHOULD TRY TO GET THOSE AUSTIN ENERGY BEFORE THE OCTOBER 17TH MEETING.

UM, AND, AND SO THAT WE HAVE A COMPREHENSIVE CONVERSATION ON THE 17TH THAT ADDRESSES ANY QUESTIONS WE HAVE, AND THEN WE'RE PREPARED TO MAKE A RECOMMENDATION ON THAT DATE, OCTOBER 17TH.

AND IF I MIGHT JUST INTERJECT, ACTUALLY THE IAGS RECOMMENDATION IS SCHEDULED TO COME OUT AUGUST 31ST.

IT IS THE EXCEPTIONS THAT THE PARTICIPANTS WILL FILE TO THE RECOMMENDATION THAT ARE DUE SEPTEMBER 15.

SO YOU'LL ACTUALLY HAVE ABOUT SIX WEEKS.

SO, YOU KNOW, AS SOON AS IT COMES OUT AND WE CAN PROVIDE IT TO YOU ALL AND, YOU KNOW, YOU CAN START REVIEWING.

YEAH.

THAT WAS ACTUALLY GOING TO BE MY SUGGESTION.

I KNOW THIS BLEEDS INTO THE NEXT ITEM IS WE MIGHT BE ABLE TO, UM, ALSO IN SEPTEMBER, AT LEAST HAVE A DISCUSSION ABOUT IT.

OBVIOUSLY WE, WE WOULDN'T TAKE ACTION, BUT AT LEAST WE COULD START TALKING ABOUT IT, ASK QUESTIONS, KNOWING THAT THERE'S STILL GOING TO BE EXCEPTIONS FILED.

YEAH.

GOOD CALL.

I, I ACTUALLY DIDN'T REALIZE THAT, UM, THAT THE, THE RECOMMENDATION WOULD BE OUT BEFORE THE SEPTEMBER MEETING.

SO I THINK THAT'S, I THINK THAT'S APPROPRIATE.

WE CAN HAVE A, WE CAN HAVE A DISCUSSION ON THE S ON, AT THE SEPTEMBER MEETING AND THEN, YOU KNOW, WE'LL POST FOR ACTION AT THE OCTOBER

[00:25:01]

MEETING AND BE PREPARED TO MAKE A RECOMMENDATION AT THAT TIME OR NOT, OR NOT.

OKAY.

COMMISSIONER, UH, READ.

IS THAT, IS THAT ALL OKAY.

COMMISSIONER CHAPMAN.

I JUST WANTED TO ASK GOD, ALL OF WHICH IS, UH, LIKE TO DEFINITELY HEAR FROM, UH, THE CONSUMER ADVOCATE AT THAT MEETING AND ANY OTHER INTERESTED PARTIES AT THE SEPTEMBER MEETING AND, AND USE THAT TO DEVELOP OUR RECOMMENDATION OR RECOMMENDATIONS FOR THE OCTOBER MEETING.

I THINK, UM, I HAVE, I HAVE A FEW THOUGHTS ABOUT THAT.

I THINK, UH, COMMISSIONER CHAPMAN, AND IT MIGHT MAKE SENSE TO HAVE THAT DISCUSSION WHEN WE, WHEN WE GET TO YOUR, UM, THE WORK GROUP, UM, DISCUSSION, I THINK IT'S ITEM NUMBER FIVE.

AND SO MAYBE LET'S OKAY, GREAT.

ANY OTHER QUESTIONS FOR MS. COOPER? OKAY.

HEARING NONE.

THANK YOU VERY MUCH FOR THAT HELPFUL PRESENTATION OR ALL RIGHT.

MOVING ON TO

[7. Discussion and possible action from Budget and Audit Workgroup (Sponsors: Chapman; Hopkins)]

ITEMS FROM COMMISSIONERS.

UH, AND NOW I THINK THIS WILL PROBABLY TAKE UP THE BULK OF OUR MEETING.

WE'VE GOT A BUDGET AND AUDIT WORKING GROUP, UM, DISCUSSED, UH, POSTED FOR DISCUSSION AND POSSIBLE ACTION.

AND THERE ARE FIVE RECOMMENDATIONS AND I WILL, UH, OBVIOUSLY LET COMMISSIONER CHAPMAN WALK THROUGH THESE.

I THINK WE SHOULD DO IT ONE AT A TIME.

AND THEN, UM, HAVE A, I THINK I WOULD LIKE TO HEAR, UM, AFTER COMMISSIONER CHATMAN, AFTER YOU PRESENT YOUR, THE ITEM I'D LIKE TO HEAR FROM, UH, AUSTIN ENERGY, WHAT THEIR THOUGHTS ARE, IF, IF THEY WOULD LIKE TO WEIGH IN.

UM, AND THEN I'D LIKE TO HAVE A DISCUSSION AMONG THE COMMISSIONERS, UM, ABOUT EACH ITEM.

SO INDIVIDUALLY, SO LET'S JUST TAKE THEM ONE AT A TIME.

LET ME, LET ME START, LET ME START.

UH, ALL OF WHICH IS, UH, THERE HAVE BEEN SOME OF THE RECOMMENDATIONS, SOME THIS IS A CONSENSUS PROJECT, AND IF IT'S OKAY, I WILL GO AHEAD.

I'LL DISCUSS REG THE FIRST COUPLE OF RECOMMENDATIONS AND HOWEVER MUCH LET'S DO IT, DO IT THAT WAY.

UH, ALL OF WHICH IS THE REC RECOMMENDATIONS.

ONE AND TWO, I WILL SPEAK, I WILL SPEAK TO, UH, WHICH IS AS, AS MS. COOPER'S, UH, STATED THERE HAVE BEEN 300, 300 COMMENTS, AND I'M GLAD THEY ARE POSTED PEOPLE.

THEY ARE HEARTFELT COMMENTS.

THEY ARE.

IF, IF I HAVE NOT HONESTLY PERSONALLY READ EVERY SINGLE ONE, BUT I IDENTIFIED THREE OF THE 300 THAT DID NOT SUPPORT THE RIGHT PACKAGE AS PROPOSED.

THE FACT IS MANY OF THE PEOPLE RETIRED SCHOOL TEACHERS, RETIRED CITY EMPLOYEES, OTHERS IN THE COMMUNITY WHO ARE WORKING TWO JOBS, UH, AND TRYING TO MAKE ENDS MEET.

UH, IT DOES NOT.

WE'RE SEEING A LOT OF PEOPLE WHO ARE HAVING A ROUGH TIME SUNDAY'S FRONT PAGE HEADLINE THAT SPOKE TO THE RISING RENTS AND PEOPLE SAYING ENOUGH, I'VE LIVED HERE ALL MY LIFE.

I'M LEAVING AUSTIN.

IT, IF YOU READ THE ARTICLE, IT REFLECTS MANY OF THE COMMENTS, THE 300 COMMENTS THAT ARE REFLECTED IN THE, IN THE EMAIL THAT YOU RECEIVED TODAY, POSTED ON THE COUNCIL ON THE CITY CLERK'S WEBSITE, THE TIMING FOR A RATE INCREASE.

IT COULD NOT BE WORSE WITH INFLATION, GENERALLY PEOPLE HAVING A HARD TIME.

I, I ASK, I ASK A FEW MINUTES AGO ABOUT THE TIMING OF THE RIGHT REVIEW.

IS THIS REALLY THE TIME TO BE INCREASING RIGHTS, PARTICULARLY FOR RESIDENTIAL CUSTOMERS? I DON'T KNOW.

I DON'T KNOW.

I THINK IT'S SOMETHING FOR EVERYONE TO CONSIDER IS I HAVE NOT LOOKED AT THE REVENUE REQUIREMENT.

I HAVEN'T, THAT'S NOT OUR JOB,

[00:30:02]

BUT ALL THE, WHICH IS WE'LL SEE WHAT THE RECOMMENDATIONS ARE.

WHETHER EVERY DOLLAR THAT IS BEING ASKED FOR IS NECESSARY.

AND IN ORDER TO LOWER THE LOWER THE DEFICIT, OR KEEP UP THE RESERVE, UH, OR TO MAINTAIN THE, UH, RATINGS WITH THE NEW YORK BANKERS, REGARDLESS, PEOPLE ARE HAVING A ROUGH TIME AND THE REFLECTED THERE, I CHANGED THE WORDING THAT EACH OF YOU HAVE.

UH, AND, UH, AND BEFORE YOU BOTH, WHEN WE DISCUSSED THIS LAST MONTH, I RECOMMENDED A DELIBERATIVE POLL AND ITEM ONE.

AND THAT TAKES TIME THAT DOES TAKE TIME.

THE PUC, UH, HAD A PROCESS IN EVERY IOU SERVICE AREA YEARS AGO, AND THEY BROUGHT IN OUTSIDE EXPERTS TO DO THAT.

UH, WHAT I CHANGED, WHAT I CHANGED HERE IN ITEM ONE WAS TO DROP THE WORD DELIBERATIVE.

SO IT WOULD BE A POLL.

NOW WE HAVE 300 AUSTIN ENERGY THAT A GREAT JOB, GREAT JOB IN TERMS OF OUTREACH, AS YOU DISCUSSED, BUT ALL ARE, WHICH IS THE CON CONCEPT IS STILL THERE TO GET A CONSUMER CONCERN ACROSS SECTION OF CONSUMER INPUT.

SO THAT THE INDEPENDENT HEARING OFFICER AND COUNSEL KNOW THAT THOSE 300 COMMENTS WHO HAVE PEOPLE WHO ARE SAYING, THIS IS THE STRAW THAT BREAKS THE CAMEL'S BACK.

THAT THAT WAS HER, NOT JUST COMMENTS FROM, FROM A FEW ARE THAT WERE LOOPED TOGETHER BY A BUNCH OF GROUPS.

LET'S, LET'S HEAR IT FROM A CROSS SECTION, AUSTIN ENERGY, IN MY OPINION, COULD UTILIZE EXISTING STAFF TO DO THAT, OR THEY COULD DO, UH, INTERAGENCY CONTRACT, UH, WITH ANOTHER GOVERNMENTAL ENTITY TO GO OUT AND START FRESH AND DO AN RFP WOULD TAKE TOO LONG.

WE, WE AGREE, BUT ALL OF WHICH IS, AND IF WE SAY POSTPONE THIS TILL NEXT YEAR, UH, THE RATE INCREASE WILL BE IN EFFECT NEXT YEAR, UH, UTILITY AND THAT'S FOR FIVE YEARS.

SO IF WE, IF WE WANT COUNSEL AND SETTING RIGHTS TO KNOW WHAT CONSUMERS ARE SAYING BEYOND THE 300 COMMENTS, WHICH AT LEAST 300, I COUNTED 308, BUT AT LEAST 300 SAID, NO, IF THE TIME FOR INPUT IS NOW, AND THAT THAT'S THOUGHTS, THE RECOMMENDATION ONE WAS CHANGED.

SO IT WOULD BE A SIMPLE POLL, NOT, NOT THE DELIBERATIVE POLL, WHICH REQUIRES A LOT MORE TIME AND PROCESS.

THANK YOU.

THANK YOU, COMMISSIONER CHAPMAN, THIS AUSTIN ENERGY CARE TO WEIGH IN ON, ON THAT RECOMMENDATION.

THANK YOU.

UM, AND I APPRECIATE THE EDITS THAT YOU HAVE MADE, UH, RECOGNIZING I THINK WE BOTH HAD EXPERIENCED WITH THE DELIBERATIVE POLL AND THAT, THAT IS QUITE AN UNDERTAKING.

UM, I, I STILL DO LOOK, YOU KNOW, SORT OF TO THE TIMING OF EVERYTHING THAT WE HAVE, UM, AND, AND HOW WE STILL MIGHT BE ABLE TO GET THAT DONE THE, THE INTER-AGENCY AGREEMENT, UNFORTUNATELY, REALLY DOESN'T ELIMINATE SOME OF THE, UH, THE PROCUREMENT RE TIMELINE REQUIREMENTS THAT WE HAVE.

UM, AND SO, YOU KNOW, IN TERMS OF, IN TERMS OF OUR STAFF, WE'RE, YOU KNOW, WE'RE NOT NECESSARILY EXPERTS, UM, IN, IN DOING SOME OF THESE POLLS AND, YOU KNOW, YOU MIGHT, UM, YOU KNOW, GET A BENEFIT FROM HAVING A THIRD PARTY, I GUESS I WOULD ALSO ASK, LIKE, WHAT, WHAT MORE ARE YOU TRYING TO ASK? LIKE, WHAT DO YOU SEE THIS POLL ASKING? YOU KNOW, HOW DO YOU THINK THAT WE MIGHT BE ABLE TO COMMUNICATE BETTER WITH THE CUSTOMERS AND GET A, MORE OF A RESPONSE BECAUSE, YOU KNOW, WE'VE ALREADY EMAILED THEM ALL, YOU KNOW, WE'VE DONE A LOT OF THINGS AND SO, YOU KNOW, WHAT QUESTIONS ARE YOU GOING FOR? AND AGAIN, I UNDERSTAND THAT YOU'RE LOOKING AT IT IN TERMS OF, OF THE BASE RATE REVIEW, BUT TO THE EXTENT THIS HAS

[00:35:01]

A BROADER SCOPE, THAT'S WHY IT MIGHT BE APPROPRIATE TO TAKE ON, YOU KNOW, THIS IN A WAY THAT DOES, UH, HAVE A, UH, A BROADER, UM, YOU KNOW, REVIEW WITH, WITH THE PROFESSIONAL, UH, YOU KNOW, POLLING CONSULTANT.

OKAY.

COMMISSIONER CHAPMAN.

YEAH.

PLEASE GO AHEAD AND RESPOND TO THEN LET'S HAVE A CONVERSATION AMONG THE GROUP.

OKAY.

SO SORTA, CERTAINLY, UH, ALL OF WHICH IS IF IT, I MEAN, WE DISCUSSED THIS OVER A MONTH AGO, THE CONCEPT OF OVER A MONTH AGO, I DON'T WANT ANYONE, IN MY OPINION, TO BE DISMISSIVE THAT THESE ARE JUST 300 ANGRY CUSTOMERS AND DON'T REPRESENT A CROSS SECTION OF AUSTIN ENERGY CUSTOMERS, BOTH RESIDENTIAL AND CON AND, AND COMMERCIAL.

AND THAT'S, THAT'S, THAT'S THE CONCEPT.

UH, CERTAINLY, UH, CERTAINLY WE CAN LOOK AT QUESTIONS FROM PAST POLLS THAT I REFERENCED, UH, AND CERTAINLY THE PEOPLE ON THE WORK GROUP CAN HELP IN DEVELOPING THE QUESTIONS.

THANK YOU.

THANK YOU.

UM, ANYBODY ELSE ON THE COMMISSION LIKE TO ADD TO THE DISCUSSION? YEAH, THIS IS CARRIE.

I, I'M NOT SURE.

I UNDERSTAND WHAT EXACTLY WE'RE TRYING TO PULL FOR IS DO YOU, RANDY AND ENVISION, THIS IS JUST AN UPPER DOWN, DO WE LIKE THE PROPOSAL OR NOT LIKE THE PROPOSAL, BECAUSE I READ QUITE A FEW OF THE COMMENTS AND WHILE THEY WERE YOU'RE CORRECT.

OVERWHELMINGLY NEGATIVE ABOUT ANYTHING THAT WOULD INCREASE RATES OR AT LEAST INCREASE THE BASE RATE.

UM, AT THE SAME TIME THEY HAD MANY, MANY, MANY DIFFERENT APPROACHES TO HOW WE SHOULD GO AT IT, WHAT WE SHOULD DO INSTEAD, WHO SHOULD BENEFIT, WHO SHOULD PAY.

AND I, I'M TRYING TO UNDERSTAND HOW A POLL HELPS US GET AN ANSWER TO THAT.

UH, ALL OF, ALL OF WHICH IS I DON'T WANT ANYONE SINCE I DEVELOPED THE QUESTION ONE, I DON'T WANT ANYONE TO BE DISMISSIVE OF THOSE 300 PLUS COMMENTS.

ALL OF WHICH IS, UH, IF I UNDERSTAND IF ADDITION AND I THROW THIS OUT, IF ADDITIONAL TIME IS REQUIRED TO DO A FULL PLEDGE DELIBERATIVE POLL, IS THAT SOMETHING THAT AUSTIN ENERGY WOULD SUPPORT, EVEN IF IT DOES NOT FIT WITHIN THE JANUARY OR CITY COUNCIL DEADLINE FOR THE RIGHT REVIEW? I THINK WE'D HAVE TO JUST HAVE A DISCUSSION MORE ON, ON WHAT WE WOULD BE POLLING ABOUT, UM, AND, AND HOW THAT, YOU KNOW, WHAT INFORMATION ARE WE REALLY TRYING TO GET FROM CUSTOMERS.

SO THERE'S CERTAINLY A DISCUSSION WE CAN HAVE AND TALK FURTHER ABOUT THAT.

ALL OF WHICH IS THE COMMUNITY BENEFIT CHARGE, WHICH IS ADOPTED ANNUALLY BY COUNCIL SEPARATE AND APART FROM THE RIGHT REVIEW, THIS WOULD BE DATA THAT WOULD BE HELPFUL FOR THEM FOR ENERGY EFFICIENCY, LOW INCOME AND LOW INCOME PROGRAMS. AND THEREFORE IF IT SPILLED OVER, UH, IF IT SPILLED OVER INTO THE FOLLOWING YEAR, 2023, IT WOULD BE HELPFUL.

AND THAT'S WHY I'M ASKING IF, IF YOU WOULD SUPPORT THAT CONCEPT.

I DON'T KNOW THAT I CAN SPEAK ON BEHALF OF ALL OF THE AUSTIN ENERGY, SENIOR MANAGEMENT, BUT, YOU KNOW, CERTAINLY I THINK THAT'S SOMETHING WE'RE, WE'RE, WE WOULD SUPPORT EXPLORING FURTHER WITH YOU ON IF THAT IS THAT, IS THAT ENOUGH OF A QUALIFIER? I THINK, YOU KNOW, UM, I JUST, MY 2 CENTS, I REALLY LIKE THE IDEA OF A POLE.

I THINK THAT IT COULD BE VERY USEFUL.

UM, I AM ALSO, I GUESS, SORT OF I'M STRUGGLING WITH, UH, HOW TO FIT IT IN, INTO THE EXISTING PROCESS.

UM, AND, AND SORT OF IN MY MIND, MAYBE, YOU KNOW, IN AN IDEAL WORLD, WE, WE WOULD HAVE, UM, HAD A POLE IN PLACE.

UM, YOU KNOW, W WHEN THE, AS SOON AS THE RATE FILING PACKAGE WAS PRESENTED, UM, OR THE WAY RATE

[00:40:01]

PER RATE PROPOSAL WAS PRESENTED, AND, AND, YOU KNOW, THERE'S, THERE'S CERTAINLY ALWAYS ROOM FOR IMPROVEMENT, AND THIS IS ONLY THE SECOND TIME, UH, THAT AUSTIN ENERGY'S ATTEMPTED TO DO ANYTHING LIKE THIS.

AND SO I THINK, YOU KNOW, MAKES SENSE TO ME THAT THAT COULD BE A PROCESS IMPROVEMENT FOR THE NEXT, UH, RATE REVIEW, UM, PUT THAT IN, IN ADVANCE, THAT'D BE SOMETHING THAT THEY, YOU SEE, UM, HAS RECOMMENDED, OR, YOU KNOW, ENSURE THAT A, THAT, YOU KNOW, PUTS THAT IN PLACE AS A PART OF THE COMMUNITY OUTREACH.

SO THAT TO ADDRESS YOUR, YOUR, UM, POINT COMMISSIONER CHAPMAN ABOUT, UM, THE, THE FOLKS WHO ARE ACTIVELY REACHING OUT SOMEHOW THEIR, THEIR VOICES BEING DISCOUNTED BECAUSE, UM, YOU KNOW, JUST LIKE RESTAURANT REVIEWS, LIKE ONLY THE PEOPLE THAT ARE REALLY UPSET ARE REVIEWING.

UM, AND SO, YOU KNOW, I THINK THOUGH THAT, YOU KNOW, I ALSO LOOKED AT THE COMMENTS AND I THINK IT WOULD BE DIFFICULT TO, IF YOU ARE A, IF YOU'RE THE INDEPENDENT HEARING EXAMINER AND YOU READ THOSE, WHICH I WOULD EXPECT THAT THEY WOULD DO, UM, THAT THEY WOULD BELIEVE THAT TO BE A PART OF THEIR, UM, CHARGE.

I THINK IT WOULD BE DIFFICULT TO IGNORE THOSE COMMENTS.

I MEAN, I, I THINK THAT THERE ARE A LOT OF THEM AND, AND THERE ARE VERY CLEAR.

UM, AND THEN IN ADDITION, I THINK WE DO HAVE THE INDEPENDENT CONSUMER OR CONSUMER ADVOCATE WHO IS THERE TO ADVOCATE ON BEHALF OF THE ENTIRE, UM, YOU KNOW, RESIDENTIAL, UM, UH, CUSTOMER CLASS.

SO I, I'M JUST, I'M A LITTLE BIT CONCERNED ABOUT HOW TO FIT IT IN.

UH, AND I THINK IT COULD BE A PROCESS IMPROVEMENT FOR THE NEXT RATE REVIEW, AND THEN SEPARATELY, I THINK WE SHOULD CONSIDER POLLING, UM, ON EACH OF THE INDIVIDUAL PROGRAMS THAT, UM, THAT I THINK WE'RE GOING TO GET TO HERE NEXT AND LIKE ITEM NUMBER THREE.

UM, BUT THE COMMUNITY BENEFIT CHARGE BEING ONE OF THOSE THINGS.

AND SO, YOU KNOW, AS IF WE, AS A COMMISSION AND TAKE UP THE COMMUNITY BENEFIT CHARGE AS SOMETHING WE'D LIKE TO REVIEW FROM A POLICY PERSPECTIVE, UM, AND THEN, YOU KNOW, PERHAPS WE GET, UH, POLLING DATA ON THAT PARTICULAR PROGRAM.

UM, I DON'T KNOW HOW COMPLICATED THAT WOULD BE, BUT I, I GUESS I, I, I DON'T SEE HOW ADDITIONAL POLLING IN THE CONTEXT OF THE PENDING RATE REVIEW WILL ADD SIGNIFICANT VALUE.

I'M HAVING DIFFICULTY SEEING THAT THOSE ARE MY 2 CENTS.

I THINK I SHOULD.

OH, I'LL GO.

OKAY.

I JUST, I WAS GOING TO SAY, I THINK I SHARE SIMILAR CONCERNS AT THIS JUNCTURE BECAUSE OF AUSTIN ENERGY'S EFFORTS TO DATE OF KIND OF PUTTING THE MARKETING OUT, GETTING THE EMAILS OUT, POSTING ALL OF THE SOCIAL MEDIA AND HOSTING THE MEETINGS THAT IF THAT THEN GETTING A POLL PUSHED OUT AT THIS POINT AFTER ALL THAT'S ALREADY HAPPENED, IT MIGHT BE CONFUSING TO FOLKS TO WHO HAVE ALREADY SEEN COMMUNICATIONS ABOUT PUBLIC ENGAGEMENT IN THE PROCESS TO THEN RECEIVE AN ADDITIONAL CAUSE I'M ASSUMING YOU WERE ENVISIONING THIS BEING PUSHED OUT TO ALL THE CUSTOMERS THROUGH EMAIL, OR I GUESS THAT'S A QUESTION.

HOW, HOW WOULD, HOW DID YOU KIND OF ENVISION PUSHING THE POLL OUT TO THE PUBLIC? OKAY.

ALL, ALL OF ALL OF WHICH HAS THE RECOMMENDATION, WHICH WAS SENT OUT WAS BEFORE THE 300, UH, CAME IN 300 PLUS CAME IN.

SO ALL OF THAT, ALL OF WHICH IS, UH, IF, IF WE'RE SATISFIED, IF WE'RE SATISFIED THAT AUSTIN ENERGY DID A OUTSTANDING OUTREACH THROUGH CUSTOMER BILLS, BILL INSERTS AT COMMUNITY MEETINGS, THIS MAY NOT BE NECESSARY NOW.

UH, ALL, UH, LIKE I SAY, THIS WAS PROPOSED AT OUR LAST MEETING BEFORE WE HAD THE BENEFIT OF READING THOSE 300, UH, COMMENTS AND THERE, THEREFORE, UH, I DO THINK THIS A AS COUNCIL REVIEWS NEXT FOR NEXT YEAR, UH, THE COMMUNITY BENEFIT CHARGE, UH, PUSHING IT OUT TO FIVE YEARS, FIVE YEARS NEXT STRIPE REVIEW 2027, I TOO, TOO FAR OUT.

BUT I THINK HAVING, UH, PUBLIC INPUT REGARDING FOR THE FOLLOWING YEAR WOULD BE HELPFUL.

AND THEREFORE,

[00:45:01]

THEREFORE FOR RIGHT NOW, I, I WITHDRAW THIS RECOMMENDATION, UH, BUT ONE ASKED THAT IT BE KEPT ALIVE AND, UH, KEPT ALIVE AS A FUTURE DISCUSSION ITEM.

THIS IS COMMISSIONER TRUSSELL.

I'D LIKE TO, UM, ASK IF WE, YOU WOULD CONSIDER RANDY MODIFYING THIS TO, UM, A RECOMMENDATION THAT EITHER THE, THIS, UM, AUSTIN ENERGY ITSELF IN THE HEARING OR, AND OR THE CONSUMER ADVOCATE, UH, THAT WE, THAT WE URGE THEM TO, UM, MAKE CERTAIN THAT ALL OF THE, UH, FEEDBACK FORMS, UH, AND ALL THE INFORMATION IS PRESENTED TO THE, UM, HEARING EXAMINER AS PART OF THE HEARING PROCESS.

IN OTHER WORDS, THE FACT THAT THEY'RE JUST FILED, I DON'T KNOW IF THAT MEANS, AND IT SOUNDS AS THOUGH THE CITY'S GUIDELINES FOR THE INDEPENDENT HEARING EXAMINER ARE, UM, NOT RESTRICTED, BUT I DON'T KNOW THAT THEY WOULD DIRECT HIM TO CONSIDER THESE MATTERS.

SO I JUST, UH, I AGREE THAT IT'S A, IT'S A VERY POWERFUL, UH, UM, LIST OF, UH, PEOPLE WHO I WOULDN'T CHARACTERIZE THEM AS THE COMPLAINER'S.

I WOULD CHARACTERIZE THEM AS THE PEOPLE WHO ARE, WHO ARE SO SIGNIFICANTLY INVESTED IN THEIR OWN GENERAL ECONOMIC WELFARE AND THE, OF THE CITY'S, UH, UH, COST OF LIVING THAT THEY TOOK THE TIME TO SUBMIT THEM.

AND THEY OUGHT TO BE GIVEN SIGNIFICANT WELL, THEY SHOULD BE GIVEN DUE, WAIT, I THINK THAT'S, I THINK THAT'S REALLY FAIR COMMISSIONER TRUSSELL.

AND I CERTAINLY DIDN'T MEAN TO IMPLY THAT, THAT THE FOLKS WHO FILED COMMENTS WERE, WERE JUST CON COMPLAINER'S.

CAUSE I THINK THAT'S EXACTLY RIGHT.

AND I THINK THAT, UM, AS I'M, AS I MENTIONED, I THINK ANYONE WHO, WHO READS THOSE WILL WILL UNDERSTAND, UM, THE, THE REAL IMPACT THAT, THAT A RATE INCREASE WILL HA WILL HAVE ON, ON, YOU KNOW, INDIVIDUAL CONSUMERS.

AND I THINK THAT, THAT, UH, I WOULD SUPPORT A MODIFICATION TO, UH, RECOMMENDATION NUMBER ONE, ALONG ALONG THOSE LINES.

IF, IF SOMEBODY WANTS TO COME UP WITH SOME LANGUAGE COMMISSIONER CROSS-SELL, I WAS SIMPLY GOING TO ASK IF YOU COULD, UH, UH, GRAPH THAT LANGUAGE.

UH, SO WE COULD HAVE THAT BEFORE US, UH, FOR CONSIDERATION LATER IN THE MEETING.

THANK YOU.

UM, OKAY.

DO YOU WANT TO MOVE ON TO ITEM NUMBER TWO THEN WHILE COMMISSIONER TRUSSELL IS WORKING ON THAT? CERTAINLY ALL OF WHICH IS, UH, SPOKE TO THIS LAST TIME ABOUT AUSTIN ENERGY.

AS, AS WE HEAR ON CAPE VIEW EVERY NIGHT, BOOMTOWN AUSTIN, UH, IS GROWING AT EXPONENTIAL RIGHTS, AND THERE'S NO INDICATION THAT THAT'S MAYBE THE GROWTH RATES COULD SLOW DOWN, BUT ALL THE WITCHES PEOPLE WERE CONTINUING TO MOVE TO OUR GREAT CITY AND WITH THAT BUSINESSES ARE MOVING HERE.

UH, AND, UH, IF I UNDERSTAND WE HAVE, UH, IF I, IF I SAW ABOUT A THOUSAND PEOPLE MOVING HERE WEEKLY COULD BE WRONG ON THAT NUMBER, BUT IT'S A LARGE NUMBER.

AND, UH, AND ALL OF WHICH IS W AUSTIN ENERGY HAS PICKED UP OVER 30,000 NEW CUSTOMERS SINCE THE LAST GREAT REVIEW.

IF I UNDERSTAND IT, CORRECT, I'M SORRY, 80,000, EXCUSE ME, 80,000 NEW CUSTOMERS.

UH, ALL OF WHICH, ALL OF WHICH IS YES.

OKAY.

SINCE 2009, RIGHT? THE LAST GRADE REVIEW WAS 2016.

SO IT'S NOT SINCE THE LAST BREAK REVIEW.

THANK YOU.

ALL OF, ALL OF WHICH HAS, UH, AS I, AS I SPOKE LAST MONTH, UH, WE KNOW THAT THE USAGE IS DOWN AS INDICATED IN THE RIGHT REVIEW COST.

AUSTIN ENERGY HAS RISING COSTS DUE TO INFLATION, DUE TO

[00:50:01]

ADDITIONAL TREE TRIMMING DUE TO THE VERY CONTRACTS THAT WE HAVE LOOKED AT, UH, AND APPROVED THAT AT THESE VARIOUS MEETINGS, NEW MATERS, NEW EVERYTHING, AND, AND, AND HAS RESOLVED, UH, THE NUMBER OF FTES MAY BE STABLE, BUT ALL OF WHICH HAS AUSTIN ENERGY IS SUBJECT TO RISING COSTS.

THE QUESTION IS WHO PAYS THOSE COSTS AS WE SAW, UH, LA LAST MONTH THERE, UH, 3,500 PEOPLE, UH, WERE CUT OFF FOR HOURS BECAUSE OF SYSTEM OVER OVERLOAD, NEW SUBSTATION JUST CAME ON TO SERVE THE ADDITIONAL CUSTOMERS IN THAT FEEDER SERVED BY THAT FEEDER.

WE ARE LOOKING AT GROWTH, EXPONENTIAL GROWTH IN THE QUESTION IS RAINY STREET IS A GOOD EXAMPLE.

LOOKING AT HIGH RISE, HIGH RISES, NEW DEVELOPMENT.

WHO'S PAYING FOR THAT, OBVIOUSLY THE BUILDER OR DEVELOPER, UH, WHO PASSES THAT ALONG AND PEOPLE PAY IT IN, IN A, EVENTUALLY IN A 30 YEAR MORTGAGE, BUT ALL OF WHICH IS THE PEOPLE WHO ARE LIFELONG RESIDENTS, UH, SHOULD NOT BE COUCHED WITH THE COST OF SERVING NEW LOAD.

THEREFORE, THE RECOMMENDATION, UH, ABOUT THE ASSIGNMENT OF COST, UH, IS THAT THOSE COSTS FOR GROWTH BE APPROPRIATELY ASSIGNED.

THAT'S THE RECOMMENDATION.

AND I ASK FOR YOUR SUPPORT.

SO AGAIN, I THINK I'D APPRECIATE, UM, AUSTIN ENERGY'S, UH, INPUT ON THIS ONE.

UM, BEFORE WE HAVE A, A LARGER DISCUSSION, IF YOU'D, IF YOU'D LIKE TO WEIGH IN, HI, MARK NEBRASKA, I'M THE CFO OF AUSTIN ENERGY.

SO, UM, YOU'RE RIGHT.

WE HAD HAD A PRETTY SIGNIFICANT INCREASE IN OUR CUSTOMER COUNT OVER THE LAST DECADE.

UM, AND WE DO ASSIGN COSTS TO CLASSES OF CUSTOMERS BASED UPON THE DEMANDS THAT THEY PUT ON THE SYSTEM.

SO FOR EXAMPLE, RESIDENTIAL COMMERCIAL, OR THEY TAKE PRIMARY OR SECONDARY SERVICE.

UM, AND FROM WHAT I UNDERSTAND, UM, YOUR DESCRIPTION IS, UH, WE WOULD HAVE A, UM, AN ALLOCATOR BASED UPON WHEN YOU BEGAN TAKING SERVICE.

SO YOU WOULD HAVE AN ASSIGNMENT BASED UPON, UM, SOME SORT OF DATE.

SO YOU HAVE MULTIPLE CLASSES OF RESIDENTIAL CUSTOMERS, NEWER CUSTOMER VERSUS OLDER CUSTOMERS, NOT NECESSARILY HOW THEY USE THE SYSTEM, BUT HOW LONG THEY'D BEEN AT CUSTOMER.

I THINK THAT'S WHAT YOU'RE DESCRIBING.

I DON'T, AM I, AM I WRONG IN THAT? NOT ATTACK.

OKAY.

NOT EXACTLY.

ALL OF WHICH IS IT'S NOT WHEN YOU MOVE TOWN, THAT'S NOT WHAT I'M SUGGESTING ARE W WHERE YOU MOVE FROM NOT, NOT SUGGESTING OR GOING THERE, THE REC THE BASIS FOR THE RECOMMEND, I, THE BASIS FOR THE RECOMMENDATION IS WHAT WE ARE SEEING IN MANY NEIGHBORHOODS ARE HOUSES BEING BULLDOZED, GOOD HOMES THAT ARE 1200, 1500 SQUARE FEET, UH, THAT ARE BEING BULLDOZED FOR REPLACEMENT HOMES THAT ARE 4,000 SQUARE FEET THAT ARE BEING BUILT WITH TWO SYSTEMS, WAS SWIMMING POOL OUT BACK, AND SOME CASES, UH, THAT THE, UH, AND SELLING IN, IN THE RANGE TWO TO $10 MILLION, THAT ON THE RESIDENTIAL SIDE, ON THE COMMERCIAL SIDE, UH, NEAR WHERE I LIVE AN ENTIRE SHOPPING CENTER IS WAITING BULLDOZED.

AND IT'S GOING ON BOTH IN SOUTH AUSTIN, NORTH AUSTIN, SHOPPING CENTERS, BEING BULLDOZED AND DEVELOPERS COMING IN AND DOING GOOD WORK TO DEVELOP REPLACEMENT.

UH, BUT THE CHARGE WOULD NOT BE THE CHARGE WOULD BE TO THE BUILDER DEVELOPER AS WE MOVE FORWARD AT NOT, NOT CREATING SUBCLASSES, BUT THAT THOSE CHARGES THAT ARE PAID ARE NOT JUST THE $200 TO STRING A LINE FROM

[00:55:01]

THAT HOUSE TO, TO THE NEAREST POLE.

AND, UH, BUT RATHER THE CONCEPT IS THAT THE BUILDER DEVELOPER, AS PART OF THE FEE, LOOK AT THE ENTIRE OVERHEAD OF AUSTIN ENERGY AND THE REQUIRED AMOUNT OF POWER TO SERVE THIS INCREASE OF CUSTOMER INCREASE OF CUSTOMERS.

SO NOW IT WOULD NOT BE REFLECTED AS A, UH, SPECIAL TARIFFS WITHIN ANY COMMERCIAL PLANTS.

IT WOULD BE PAID THROUGH ENTIRELY THROUGH DEVELOPMENT AND BELT OR FEES.

YEAH.

SO TO THE EXTENSOR AND BUILDS A LARGE HOME, THAT STANDARD RESIDENTIAL SERVICE COULD NOT SERVE.

THEY PAY A CONTRIBUTION TO ANY CONSTRUCTION, AND THERE ARE HOMES IN AUSTIN THEY'RE LARGE ENOUGH THAT REQUIRE THREE PHASE TYPE SERVICE.

AND THEY, THEY, THEY PAY FOR THAT.

I THINK WHAT YOU'RE REFERRING TO IS THOSE TYPES OF LONG-TERM SYSTEM IMPROVEMENTS THAT WE HAVE TO MAKE AS THE CITY ITSELF GROWS.

AND THOSE ARE ASSIGNED BY CLASS.

AND I DON'T HAVE A WAY TO ASSIGN THAT TO AN INDIVIDUAL CUSTOMER.

FOR EXAMPLE, SOMEONE BUILDS A HOME SOMEWHERE IN AUSTIN AND SAYING A YEAR OR TWO FROM NOW, WE'RE GOING TO HAVE TO INCREASE OUR BILLING SYSTEM FOR MORE CUSTOMERS TO GO TO THAT CUSTOMER AND SAY, I'M GOING TO HAVE TO CHARGE YOU X DOLLARS BECAUSE OF THE DECISION I HAVE TO MAKE A YEAR FROM NOW OR FIVE YEARS FROM NOW.

SO THEY, THEY PAY THE COST, CONNECT THEM THROUGH THE LINE EXTENSION FEE, UM, AND ANY NON-STANDARD SERVICE THEY PAY AS AS WELL.

UM, BUT I DON'T HAVE A WAY OTHER THAN ASSIGNING COSTS TO CLASSES, A CUSTOMER TO ASSIGN IT TO A SUB SET OF THOSE CUSTOMERS WITHOUT HAVING THEM BE A CLASS OF CUSTOMER.

AND THAT'S WHY I ASKED ABOUT THE DATA ISSUE.

AND THE RECOMMENDATION IS THE RECOMMENDATION.

THE WORDING IS THAT AUSTIN ENERGY WORK IN CITY COUNCIL CONSIDER THE UNDERLYING RATIONALE.

ALL OF WHICH IS WE'RE NOT ALL OF WHICH IS THIS IS GOING TO TAKE TIME.

THIS IS GOING TO TAKE SOME TIME.

AND, AND TO, TO LOOK AT, TO LOOK AT THE HARD COST ASSOCIATED WITH THE BUILDING, BOOM THAT WE ARE SAYING.

SO NOT ALL OF WHICH IS IT, THIS IS A GENERAL POLICY CONCEPT AND NOT, NOT SOMETHING, UH, ANYTHING MORE THAN THAT.

UH, YOU KNOW, WE'RE ASKING AUSTIN ENERGY CITY COUNCIL PUT ON YOUR THINKING CAPS, THAT'S THE RECOMMENDATION.

WELL, I APPRECIATE THAT.

AND WE, I MEAN, WE HAVE A WHOLE SECTION ON HOW HE ASSIGNED COSTS FOR THE COST OF SERVICE.

AND, UH, WE ALWAYS TAKE A LOOK AT THAT AND MAKE SURE THAT WE ARE ALLOCATING THOSE COSTS TO EACH CLASS OF CUSTOMER BASED UPON HOW THAT CLASS USES THE SYSTEM.

AND NOT ONLY DO WE LOOK AT SORT OF THE STANDARD APPROACHES USING INDUSTRY, BUT WE ALSO LOOK AT SOME UNIQUE AND SAY, WOULD THIS BE A MORE RATIONAL WAY TO DO IT? SO WE DO TAKE THOSE INTO ACCOUNT WHEN WE DO OUR COST OF SERVICE, BUT WE HAD TO HAVE A MORE IN-DEPTH DISCUSSION ON, ON HOW WE DETERMINE THOSE COSTS WITH YOU.

UM, SO MARK, IS THERE SOME KIND OF WRITTEN DOCUMENT THAT DESCRIBES THE COST CAUSATION ANALYSIS YOU WERE JUST DESCRIBING THAT WE COULD REVIEW? YES.

IT'S IN OUR RATE REVIEW REPORT THAT WE FILED, IT'S A ONLINE, SOMEBODY SEND US THE LINK TO THEM.

YES.

YEAH.

OKAY.

I MEAN, IT HELP US DIVE INTO THE SPECIFIC, SO WE DON'T HAVE TO WADE THROUGH A LOT.

SURE.

MARK.

IT, IT SOUNDS TOO, ARE YOU, ARE YOU DONE DAVE? YEAH.

THANKS.

I WAS JUST GONNA ASK BASED ON HOW THIS IS WRITTEN, YOU KNOW, RECOMMEND, AND THIS IS KIND OF WHAT YOU WERE JUST TALKING ABOUT, RECOMMEND THAT AUSTIN ENERGY AND CITY COUNCIL CONSIDER THE UNDERLYING RATIONALE FOR THE REVENUE DEFICIT.

IT SOUNDS TO ME LIKE THAT'S SOMETHING AUSTIN ENERGY ALREADY DOES.

WELL, I'M HAVING TO INTERPRET SOME OF THE WORDS ON IT, BUT JUST, JUST TAKING A COST OF SERVICE STUDY DOES, IT'S WHAT IT SAYS.

IT'S OUR RATES AREN'T GENERATING ENOUGH REVENUE FOR OUR TEST YEAR.

SO THEN WE SET THOSE RATES TO ACHIEVE THAT LEVEL OF REVENUE FOR THAT TEST YEAR.

UM, AND THAT'S REALLY WHAT IT COSTS TO SERVICE DOES.

AND THEN YOU ALL, IT SOUNDS LIKE YOU ALL DO AN EXAMINATION OF EXPENSES ASSOCIATED WITH THE GROWTH AND HOW TO ASSIGN THOSE EXPENSES.

THAT'S CORRECT.

AND THAT'S OUTLINED IN OUR RATE REVIEW.

UM, I GUESS MY POINT IS, IT SOUNDS LIKE SOME OF THIS IS ALREADY BEING DONE AND THERE MAY BE A WAY FOR US TO KIND OF DIG INTO IT AT THE COMMISSION LEVEL AT THE APPROPRIATE TIME.

[01:00:01]

BUT I GUESS I JUST, MY VIEW OF THIS IS IT SOUNDS LIKE BASED ON THE TEXT OF THIS PROPOSED ITEM, I'M HEARING THAT AUSTIN, ENERGY'S ALREADY DOING THIS.

WE JUST MAY NEED TO DIG IN A LITTLE BIT INTO AREAS WHERE WE HAVE QUESTIONS.

UH, COMMISSIONER BOWEN.

MY UNDERSTANDING IS IT IS THE, UH, THE ANALYSIS FOR THE RIGHT REVIEW WAS BASED ON THE TEST HERE.

THAT'S CORRECT.

AND WHAT'S MISSING.

WHAT IS MISSING IS AUSTIN ENERGY HAS A REVENUE DEFICIT AS WE, AS WE HAVE LEARNED.

AND THEREFORE, HOW DO YOU MAKE UP FOR THAT REVENUE ESTIMATE? DO YOU CHARGE IT GENERALLY AMONG THE EXISTING RIGHT CLASSES OR DO YOU TO ACCOUNT FOR GROWTH? WE APPROVE CONTRACTS, MILLIONS OF DOLLARS FOR, FOR NEW MA FOR, UH, NEW METERS, UH, NOT NECESSARILY REPLACEMENT MATERS BECAUSE THOSE ARE, THOSE ARE LARGELY INSTALLED, BUT RATHER METERS TO MEET THE FUTURE NEEDS SUBSTATIONS, UH, EMPLOY EMPLOYEES, TRUCKS, ALL OF WHICH IS THE QUESTION IS, DO WE SADDLE IT TO THE EXTENT THAT WE ARE A GRADE THAT AUSTIN ENERGY NEEDS MORE MONEY IS WHO'S GOING TO PAY THE COST.

AND MY, MY RECOMMENDATION ITEM TO, UH, THE SECOND SENTENCE IS THAT THE REVIEW INCLUDE AN EXAMINATION OF EXPENSES ASSOCIATED WITH SYSTEM GROWTH.

AND THE PROPER ASSIGNMENT WERE AGREED.

THE FIRST SENTENCE COVERS COVERS WHAT, WHAT MARK JUST DESCRIBED, BUT THE DEVELOPMENT PHASE IN MY VIEW, AS I LOOKED, AS I LOOKED AT THEM ARE MARGINAL, UH, COMMISSIONER REED.

I THINK YOU, YEAH, I WAS JUST GOING TO SUGGEST THAT I THINK IT NEEDS TO BE WRITTEN A WAY THAT'S CLEAR THAT WHAT WE'RE TALKING ABOUT ISN'T NECESSARILY, UM, WHAT'S ALREADY BEEN DONE IN THE RATE REVIEW BECAUSE CLEARLY THEY'VE DONE AN ANALYSIS ALREADY OF PROPER ALLOCATION OF COSTS TO THE DIFFERENT CUSTOMER.

WHAT WE'RE TALKING ABOUT IS REVIEWING A NEW IDEA OF ASSIGNING SOME COSTS TO NEW GROWTH GOING FORWARD.

I'M NOT SURE HOW TO WRITE IT IN A WAY THAT'S CLEAR, BUT I CAN SEE READING THIS.

IT'S NOT QUITE CLEAR.

SO MAYBE THERE'S A SUCH AS CLAUSE SUCH AS LOOKING AT NEW DEVELOPMENT FEES OR SOMETHING TO THAT EXTENT.

UM, THAT MAKES IT CLEAR.

WE'RE NOT ASKING US TO ENERGY TO REDO THEIR COST ALLOCATION STUDIES IN THE MIDDLE OF A RATE CASE.

WE'RE ASKING CITY COUNCIL TO LOOK AT, UH, POTENTIALLY A POTENTIAL NEW WAY TO ALLOCATE COSTS THAT WOULD PUT SOME OF THAT COST ON NEW DEVELOPMENT AS IT COMES ON.

UM, I HAD TO COMMENT ON IT.

I THINK WHAT I'M HEARING.

SO THERE'S TWO BASIC WAYS OF SETTING RATES.

THERE'S ONE CALLED THE EMBEDDED APPROACH OR HISTORICAL APPROACH WE'RE USED ACTUAL COSTS, AND THAT'S WHAT WE DO HERE AT AUSTIN ENERGY.

IN FACT, THAT'S WHAT IS PERMITTED IN MOST STATES, THERE'S ANOTHER APPROACH CALLED MARGINAL COST WHERE YOU'RE, UM, UH, COMING UP WITH THE COST OF THE NEXT ELEMENT NEXT KWH, WHAT DOES IT COST TO PROVIDE THE NEXT KWH? UM, AND THAT'S CALLED A MARGINAL COST APPROACH THAT IS DISALLOWED IN MOST STATES.

I ONLY KNOW OF ONE OR TWO STATES THAT ALLOW IT.

AND I KNOW IN TEXAS, THEY DON'T KNOW HOW MARGINAL COSTS, BECAUSE WHAT YOU'RE REALLY DOING IS YOU'RE BASING OUR COSTS ON THE ACTUAL COST.

BUT WHAT YOU THINK THAT WILL BE IN THE FUTURE, UM, WHERE IN THE, UH, EMBEDDED HISTORICAL COSTS, YOU HAVE ACTUAL RECEIPTS AND KWH THAT YOU BASE IT ON.

AND SO IT'S, UH, YOU CAN, YOU CAN PROVE IT.

AND TO THE EXTENT YOU CAN MAKE ADJUSTMENTS KNOWN AND MEASURABLE.

SO ONCE YOUR EAR CLOSES, YOU MAKE A NOTE, A MEASURABLE CHANGE TO THAT.

UH, BUT BEYOND THAT, WE DON'T, UH, WE DON'T SET RATES FOR WHAT WE THINK MAY HAPPEN IN THE FUTURE.

UM, IF WE FIND OUT THAT OUR RATES ARE, UH, ARE OVER RECOVERY OR UNDER RECOVERY, WE'LL COME BACK AND HAVE ANOTHER RATE CASE TO RESET THOSE RATES BASED UPON A NEW TEST YEAR.

IS IT NOT TRUE THOUGH, THAT IN THE WORLD OF

[01:05:01]

TRANSPORTATION OR WATER AND WASTEWATER, WE PUT IMPACT FEES ON DEVELOPERS ALL THE TIME THAT'S TO TRY TO PAY FOR THE GROWTH THAT'S COMING, BECAUSE WE KNOW FOR EXAMPLE, THAT THE, THE WATER TREATMENT AND THE WASTEWATER TREATMENT THAT SERVES PRESENT DAY, WE'RE GOING TO HAVE MORE NEEDS AS NEW DEVELOPMENT HAPPENS.

SO, YEAH, AND WE DO THINGS LIKE THAT AND TRANSPORTATION TOO, RIGHT, WHERE WE PUT IMPACT FEES FOR FUTURE TRANSPORTATION COSTS ON OUR DEVELOPMENT.

OKAY.

I WOULD THINK, YOU KNOW, I, I'M SORT OF SPECULATING NOW HERE, LIKE COFFEE TALK, AN IMPACT FEE IS KIND OF LIKE A CONTRIBUTION TO ANY CONSTRUCTION WHERE WHEN A CUSTOMER COMES AND SAYS, I'M GOING TO BUILD THIS BUILDING, WE ASKED THEM TO GIVE US OUR LOAD PROJECTIONS.

AND WE, WE ENGINEER THAT, THAT CONNECTION SO THAT IT SERVES OUT OF MOUSE ENERGY TO THAT CUSTOMER, EVEN IF THEY DON'T USE IT.

SO THEY PAY THE CONTRIBUTION, ANY CONSTRUCTION THAT MATCHES THEIR LOAD FORECAST.

I THINK AS LIKE AN IMPACT FEE, WHEN A DEVELOPER SAYS, I'M GOING TO BUILD THIS NEW HOUSING AREA AND YOU SORT OF ESTIMATE THE NUMBER OF CARS AND THEY SAY, WELL, THEN YOU HAVE TO IMPROVE THIS INTERSECTION TO HANDLE THE CARS AND STUFF, EVEN IF THEY DON'T SHOW UP.

SO I THINK THAT'S HOW IT EQUATED, NOT SO MUCH THE UNKNOWN COSTS IN THE FUTURE, BUT WHAT'S THE CUSTOMER'S USAGE.

SO IN THAT EXTENT, I WOULD SAY WE DO SOMETHING SIMILAR TO THAT IN THAT CONTRIBUTION NET CONSTRUCTION.

SO I THINK I'M, I'M HEARING A COUPLE THINGS.

IT, IT SEEMS THE CONCEPT IS SUPER INTERESTING.

UM, AND, UH, IT, IT SEEMS LIKE A W W ONE THERE'S WE HAVE THE HISTORICAL TEST HERE AND, AND WE DON'T, WE DON'T HAVE FUTURE TEST YEARS IN TEXAS.

UM, AND YOU KNOW, SO, SO WE, WE ARE, YOU KNOW, WE'RE, WE'RE ONLY LOOKING AT ACTUAL EXPENSES FOR OUR TEST, YOUR PLUS AS MRS. DOMBROWSKI MENTIONED A KNOWN AND MEASURABLE CHANGES.

SO, YOU KNOW, THERE CAN BE SOME ESTIMATES MADE, YOU KNOW, IF THEY'RE, IF THEY REACH THAT STANDARD.

UM, AND SO I THINK, YOU KNOW, THAT WHERE WE'RE CONSTRAINED IN, IN, UH, SEEKING THE DOLLARS NECESSARY TO RUN THE UTILITY FROM EXISTING CUSTOMERS AND, AND BASED ON A HISTORICAL TEST YEAR, AND, YOU KNOW, AS NEW FOLKS MOVE IN, THEY WILL FALL INTO THE EXISTING RATE CLASSES.

UM, UNTIL SUCH TIME WE HAVE ANOTHER RATE REVIEW IF WE HAVE, IF WE'VE GOTTEN TO THE POINT WHERE GROWTH HAS BEEN.

SO, UH, YOU KNOW, LARGE THAT NOW WE ARE UNDER RECOVERING.

AND SO WE NEED TO COME BACK IN AND SEEK ADDITIONAL, UM, RATE INCREASE, OR AS, AS MR. JOHN BOSSY MENTIONED, UH, UH, AN OVER RECOVERY, IT COULD BE REFUNDED.

UM, BUT I THINK, UH, CONSIDERING, AND THEN IT'S, IT'S ALMOST LIKE AT THE, AT THAT NEXT RATE REVIEW, IF WE WANTED TO CONTEMPLATE A DIFFERENT COST ALLOCATION METHOD, UM, YOU KNOW, WE CERTAINLY COULD, UH, YOU KNOW, I THINK THE CONCEPT IS REALLY INTERESTING.

UM, BUT I THINK THAT IT COULD GET REALLY COMPLICATED REALLY QUICKLY.

AND, AND THAT WOULD, WE, YOU KNOW, YOU WOULD NEED SOME TYPE OF ECONOMICS UTILITY, UH, CONSULTANT TO DEVELOP A, YOU KNOW, WHAT, WHAT THE COST ALLOCATION WOULD LOOK LIKE IN THAT, UM, SORT OF CONSIDERING THESE PARAMETERS OR GUIDELINES.

UM, BUT SO I, I'M ALL OF THAT TO SAY, I DO THINK WE HAVE THE KAYAK, WHICH IS THE CONSTRUCTION AND AID OF, UM, NO CONTRIBUTION AND AID OF CON CONSTRUCTION, WHICH IS, I THINK JUST A POLICY.

AND, AND SO I THINK