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[00:00:07]

OKAY FOLKS,

[CALL MEETING TO ORDER]

I'M GOING TO CALL TO ORDER THIS SPECIAL CALLED MEETING OF THE ELECTRIC UTILITY COMMISSION.

IT'S JULY 18TH, 2022 AT 6:04 PM.

WE'RE HERE IN THE SHUDI FATH CONFERENCE ROOM AT THE AUSTIN ENERGY HEADQUARTERS.

AND WE HAVE A COUPLE OF COMMISSIONERS APPEARING VIRTUALLY IN ATTENDANCE FOR THE RECORD, OUR COMMISSIONERS TRUSSELL BOWEN, UM, MCCANN.

I'M FORGETTING HER LAST NAME.

YONKER.

THANK YOU.

I COULDN'T SEE YOUR NAME TAG.

UH, UH, COMMISSIONER CHAPMAN, COMMISSIONER REED AND COMMISSIONER.

HOPKINS' VIRTUALLY WE'VE GOT COMMISSIONER AND COMMISSIONER TUTTLE.

UM,

[PUBLIC COMMUNICATION: GENERAL]

ARE THERE ANY, UH, PUBLIC COMMENTS TODAY? NOPE, NO ONE HAS SIGNED UP FOR PUBLIC COMMENTS.

SO, UH, I WOULD LIKE TO JUST NOTE, UM, UH, ONE PROCEDURAL ITEMS. SO YOU, YOU MAY HAVE NOTICED THAT THE AGENDA LOOKS SLIGHTLY DIFFERENT THAN IT HAS IN THE PAST, AS FAR AS FORMATTING.

UM, THE CITY CLERK HAS, UH, PROVIDED A FORMAT THAT THEY HAVE DIRECTED US TO ATTEMPT TO, UM, BE CONSISTENT WITH.

UH, THIS IS A FORM THAT THEY'RE RECOMMENDING FOR MULTIPLE, UH, BOARDS AND COMMISSIONS, ESPECIALLY ONES WITH THE, UH, AUTHORITY TO APPROVE, UH, RECOMMENDATIONS TO COUNCIL TO FOLLOW A STANDARDIZED AGENDA.

SO WE'RE, WE'RE WORKING TO INCORPORATE THAT, UM, STANDARD.

SO TO THE EXTENT THAT LOOKS A LITTLE DIFFERENT, THAT'S WHY, UM, NOTHING SUBSTANTIVELY IS INTENDING TO BE CHANGED HERE.

CAN I ASK ONE QUICK QUESTION ON THAT? SURE.

UM, SO AS AN EXAMPLE, IN TERMS OF THE ORDER, WE NOW HAVE A STAFF BRIEFING BEFORE POSSIBLE ACTION AND RECOMMENDATIONS.

AND IS THAT THE WAY WE'RE GONNA DO THE MEETINGS FROM NOW ON? I ACTUALLY THINK THAT, UM, IN HINDSIGHT I WOULD PREFER TO TAKE UP THE RCAS FIRST BEFORE STAFF BRIEFINGS.

SO, SO THAT FOLKS THAT ARE HERE, UM, FOR THOSE ITEMS IN PARTICULAR CAN TAKE OFF.

AND SO I THINK, UM, IN FUTURE, I'M GOING TO, I'M GOING TO PROPOSE THAT WE TAKE THAT ITEM OUT OF ORDER AND IN FUTURE, WE WILL MAKE SURE THAT RCA HAS COME FIRST BEFORE STAFF BRIEFINGS.

OKAY.

THANKS.

THE REAL CHANGE COMES COMMISSIONER READ JUST FOR YOUR INFORMATION IN WHAT THEY'RE CALLING DISCUSSION AND POSSIBLE ACTION ON RECOMMENDATIONS.

AND THAT LANGUAGE HAS JUST WRITTEN A LITTLE BIT DIFFERENTLY.

SO WE ARE, IT, IT LISTS RECOMMEND APPROVAL TO AUTHORIZE NEGOTIATION AND EXECUTION OF A CONTRACT.DOT.DOT.SO WE CAN CHOOSE TO NOT RECOMMEND APPROVAL.

SO, UM, THAT THAT'S REALLY WHERE THE DIFFERENCE IS IN MY MIND.

UM, OKAY.

SO MOVING ON TO, AS I MENTIONED, OH, NO, EXCUSE ME.

MOVING

[1. Approve the minutes of the Electric Utility Commission Regular meetings on May 9, 2022, and June 13, 2022.]

ON TO ITEM NUMBER ONE APPROVAL OF THE MINUTES.

UM, WE HAVE MINUTES FROM BOTH THE MAY 9TH MEETING AND THE JUNE 13TH MEETING TO APPROVE.

ARE THERE ANY CORRECTIONS TO EITHER OF THOSE MEETING MINUTES? UH, YES.

I THINK ON THE JUNE MEETING, I ABSTAINED ON RECOMMENDATION TO OKAY.

NOTED.

THANK YOU ROBIN.

COULD WE GET THAT CORRECTED? OKAY, GREAT.

I'LL ENTERTAIN A, UM, ROBIN, IS IT POSSIBLE TO APPROVE THE JUNE MINUTES WITH AN AMENDMENT ORALLY HERE AND YOU MAKE THAT CHANGE IN THAT? OKAY, GREAT.

OKAY, GREAT.

THEN I'LL ENTERTAIN A MOTION TO APPROVE THE MAY 9TH, 2022 MINUTES.

AND THE JUNE 13TH, 2022 MINUTES AS AMENDED STATED BY COMMISSIONER YONKER.

SO MOVED.

IS THERE A SECOND? THANKS.

UH, ALL THOSE IN FAVOR AYE.

AND NONE OPPOSED MOTION PASSES.

AND I SEE COMMISSIONER HADDON HAS JOINED US AS WELL.

IS THAT A FULL HOUSE? WOW.

I, I BELIEVE WE'RE MISSING COMMISSIONER FUNKHOUSER COMMISSIONER FOND COUNSELOR NEXT TIME.

OKAY, GREAT.

OKAY.

SO, UH, LET'S SEE.

AS I MENTIONED, WE'LL TAKE, UM, ITEM NUMBER THREE OUT OF ORDER DISCUSSION AND POSSIBLE ACTION ON RECOMMENDATIONS.

SO ARE THERE ANY ITEMS THAT COMMISSIONERS WOULD LIKE TO TAKE UP? I NEED JUST ONE MINUTE, UH, TO JUST CHECK SOMETHING REALLY QUICKLY.

SO

[00:05:01]

EXCUSE ME.

I THINK I'D LIKE TO PULL ITEM NUMBER FOUR.

ARE THERE ANY OTHER ITEMS COMMISSIONERS WOULD LIKE PULLED FOR DISCUSSION? I HAVE A GENERAL QUESTION AND THAT IS WHETHER ANY OF THESE ITEMS, UH, ADDRESS THE ISSUE OF SEXUALIZATION.

AND IF SO, THEN, THEN LIKE, LIKE TO HAVE MORE INFORMATION ON THAT ITEM.

OKAY.

IS THERE ANYONE WITH AUSTIN ENERGY STAFF THAT CAN TELL US IF ANY OF THE, UM, RECOMMENDATION ITEMS WOULD COVER? YEAH.

SIDNEY JACKSON, CHIEF OPERATIONS OFFICER, AS I LOOKED THROUGH THE LIST, IT'S A VERY GRANULAR GENERATED OR NOT TARGETED AT THE SPECIFIC ISSUE OF SEXUALIZATION, WHETHER THEY BE SWITCHGEAR OR WHETHER IT BE BATTERY COMPONENTS, WHETHER IT BE CONTROL SYSTEMS FOR LIGHTING, IT'S NOT APPARENT WHERE THE BUTTON IS.

OH, IT'S ALREADY ON, UM, AGAIN, SIDNEY JACKSON, UH, CHIEF OPERATIONS OFFICER.

UH, YOUR QUESTION WAS AROUND ANY OF THESE, UH, FOUR COUNCIL OR FOUR VOTE RCAS, UH, RELATED TO SEXUALIZATION.

UH, AS I READ THE RCAS, THEY ARE SPECIFIC TO MORE GRANULAR AND MORE DETAILED ISSUES, WHETHER IT BE CONTROLLED SYSTEMS FOR BATTERIES, WHETHER IT BE CONTROL SYSTEMS FOR, UM, UM, SUBSTATIONS OR WHETHER IT BE SOME CONTROL SYSTEMS FOR LIGHTING.

UH, THOSE ARE THE GENERAL, UH, TECHNICAL COMPONENTS THAT ARE IN THESE RCAS.

THANK YOU.

ANY OTHER ITEMS COMMISSIONERS WOULD LIKE PULLED, OKAY.

HEARING NONE.

I WILL

[Items 3 & 5 - 16]

ENTERTAIN A MOTION TO APPROVE FOR RECOMMENDATION TO COUNCIL, UH, ITEMS NUMBER THREE, FIVE THROUGH 16.

SO MOVED.

THANK YOU.

IS THERE A SECOND, SECOND? THANKS.

ALL THOSE IN FAVOR.

AYE.

COMMISSIONER HADN'T I DIDN'T CATCH YOUR VOTE.

I THINK YOU'RE ON MUTE.

OKAY, GREAT.

I THINK THAT'S A, YEAH, I THINK THAT'S A POSITIVE.

OKAY, GREAT.

ALL RIGHT.

UM, UH, NONE OPPOSED MOTION PASSES.

THANK YOU.

ALL RIGHT.

SO, UH, MOVING

[4. Recommend approval to authorize an amendment to an existing contract with Mitsubishi Electric Power Products Inc D/B/A Mitsubishi Electric Power Products for continued gasinsulated switchgear and related services to increase the amount by $850,000, for a revised total contract amount not to exceed $7,650,000.]

ON TO ITEM NUMBER FOUR, IS THERE SOMEONE FROM THE COMMISSION OR THE EE THAT CAN SPEAK TO THIS HOMICIDE COMMISSION STAFF? WE DON'T, WE DON'T HAVE THAT.

YES.

COMMISSIONER SIDNEY JACKSON, AGAIN IN RELATION TO ITEM NUMBER THREE, IS THAT I BELIEVE ITEM NUMBER FOUR, RECOMMENDATION TO AUTHORIZE AMENDMENTS FOR EXISTING CONTRACT WITH MS. MITCHELL BC FOR SWITCH GEAR WORK, INSULATED SWITCHGEAR.

THIS IS ASSOCIATED WITH THE RAINY STREET SUBSTATION.

AS YOU RECALL, THE RAINY STREET SUBSTATION DID EXPERIENCE SOME DELAYS SOMETIME IN THE PAST DUE TO BASICALLY COVID IMPACTS.

UH, SO AS LOOK AT THIS PARTICULAR, UM, ACTION ITEM, IT IS RELATED TO STORAGE.

UH, IT'S ALSO RELATED TO PROJECT MANAGEMENT SERVICES PROVIDED BY MENTIA BC STORAGE IS UNIQUE IN THIS SPACE BECAUSE IT'S CLIMATE CONTROLLED IN HUMIDITY CONTROLLED, UH, STORAGE FOR THE SWITCH GEAR.

UH, AND THEN THERE IS SOME CONTINGENCY BUILT IN, UH, UH, RELATED TO THIS MATTER AS WELL.

OKAY, THANKS.

THAT, THAT ACTUALLY ANSWERS MY QUESTION.

I WANTED TO UNDERSTAND WHAT THE COSTS WERE ASSOCIATED WITH THE DELAY.

SO, UH, IT'S UM, IT'S IT, UH, I WOULD SAY A FAIRLY SIGNIFICANT INCREASE TO THE, THE COST OF THE CONTRACT.

UM, AND SO THAT'S PRIMARILY RELATED TO THE, UH, STORAGE ASSOCIATED WITH EQUIPMENT, UH, THAT WE COULDN'T PUT, WE COULDN'T PUT INTO SERVICE BECAUSE OF UH COVID AND, UM, HALTED, CONSTRUCTION, SUPPLY CHAIN DISRUPTIONS, IN ADDITION TO,

[00:10:01]

UH, PROJECT MANAGEMENT, UM, WORK, UH, INCREMENTAL PROJECT MANAGEMENT WORK THAT WE'RE GOING TO NEED.

UH, AND WHICH IS SOMETHING YOU DIDN'T MENTION.

OKAY.

AND WHAT IS THAT INCREMENTAL PROJECT MANAGEMENT WORK? WHAT DOES THAT LOOK LIKE? PROJECT MANAGEMENT IN TERMS OF THE DESIGN COORDINATION, UH, THE LOGISTICS ASSOCIATED WITH MOVING EQUIPMENT AROUND IN WHEN, UH, TRYING TO GET IT IN PLACE IN SUPPORT OF THE PROJECT CONSTRUCTION SCHEDULE AND THEN ALL THE OTHER COORDINATION AND INTERCONNECTED PARTS THAT GO WITH THAT.

OKAY.

ALL RIGHT.

THANK YOU.

THAT'S ALL I HAVE.

UM, COMMISSIONER HADDEN.

DID YOU HAVE ANOTHER QUESTION? UH, YES.

CAN YOU HEAR ME? YES.

OKAY.

IF POSSIBLE, I WOULD LIKE TO ABSTAIN ON ITEM 10 THAT WE WERE VOTING ON.

THAT'S WHY I WAS DELAYED A LITTLE BIT.

IF, IF THAT'S NOT POSSIBLE TO PULL IT OUT THAT WAY, THEN I'LL LEAVE IT AS A YES.

I'M TRYING TO THINK UNDER THE RULES ON ROBERT'S RULES, IF WE COULD, UH, DO WE NEED TO RETAKE PROMOTES PRIOR MOTION? OKAY.

SO I'LL MOVE TO RECONSIDER OUR PRIOR MOTION ADOPTING A NUMBERS THREE AND 5, 3 16.

THANK YOU.

COULD WE ASK A QUESTION ABOUT NUMBER 10? IS THAT POSSIBLE? WELL, SURE.

I THINK NOW WE HAVE DISCUSSION.

YEAH.

OKAY.

UM, SO THERE'S A SECOND.

ALL RIGHT.

DISCUSSION.

UM, YOU'D LIKE TO JUST PULL ITEM NUMBER 10 SO WE CAN ASK A QUESTION.

I'LL, I'LL ENTERTAIN A MOTION TO, UM, APPROVED FOR COUNCIL RECOMMENDATION ITEMS NUMBER.

AND AT THIS POINT I'M GOING TO INCLUDE ITEM NUMBER FOUR BECAUSE I'VE HAD, I'VE GOT MY QUESTIONS ANSWERED.

SO I'M GOING TO SAY ITEMS NUMBER THREE THROUGH NINE AND 11 THROUGH 16.

OKAY.

THANK YOU.

COMMISSIONER VIRTUAL.

AND SO OUR SECOND, SECOND.

OKAY.

OKAY, GREAT.

THANK YOU.

ALL THOSE IN FAVOR.

AYE.

COMMISSIONER READ.

DID YOU VOTE? OH, ON THE OTHER ONES? YEAH.

YEAH.

ON THE OTHER ONES.

YEAH.

THANK YOU.

SORRY.

NONE OPPOSED.

MOTION PASSES.

OKAY.

SO NOW, UM, LET'S TAKE, UH, ITEM NUMBER 10, UH, AND COMMISSIONER READ.

OKAY.

SO MY QUESTION IS THIS IS THIS MONEY, UH, FOR THE CONTRACT WITH CG THREE SPECIALTY CHEMICALS, UM, TO PROVIDE THIS, UM, CHEMICAL, WHICH IS ACQUIESCE AMMONIA, IS THAT FOR THE PURPOSES OF LOWERING EMISSIONS, EMISSIONS OF NITROGEN OXIDE, IS THAT A, IS THAT A, AN ENVIRONMENTAL COMPLIANCE ISSUE? YES, IT'S, IT'S REQUIRED AS PART OF THE SYSTEM TO, UH, REDUCE NOT, BUT THE CONTRACT YOU HAVE BEFORE YOU, UM, IS ONLY FOR THE NEXT FIVE YEARS, IT DOESN'T EXTEND PAST THAT DATE.

RIGHT.

AND IT'S A FAIRLY TYPICAL CONTRACT PERIOD.

OKAY.

THANKS.

YEP.

OKAY.

WAS THAT, UM, I'LL ENTERTAIN A MOTION TO APPROVE ITEM NUMBER 10.

UH, I'D MAKE A MOTION TO APPROVE THAT ITEM.

THANK YOU.

IS THERE A SECOND, SECOND? THANK YOU.

ALL THOSE IN FAVOR.

AYE.

ALL THOSE OPPOSED AND COMMISSIONER HADDON IS SUSTAINED.

I MEAN, ABSTAINING, THANK YOU VERY MUCH.

AND I THINK, UH, WE'VE LOST COMMISSIONER CHAPMAN, SO, UH, WE'LL JUST REGISTER HIM AS A NON VOTE ON THAT ITEM.

OKAY.

UH, ITEM NUMBER 10 PASSES.

OKAY.

NOW I'D LIKE

[2. Staff briefing regarding an update on the Austin Energy Resiliency as a Service (RaaS) Program Development by Erika Bierschbach, Vice President of Market Operations & Resource Planning.]

TO TAKE BACK, UH, WE'RE GO, GO BACK UP TO ITEM NUMBER TWO, STAFF BRIEFINGS AND REPORTS.

AND I BELIEVE WE HAVE THE SPEAR SPOT HERE TO, UM, TALK ABOUT RESILIENCY AS A SERVICE.

GOOD EVENING.

COMMISSIONERS ERICA VICE PRESIDENT OF ENERGY MARKET OPERATIONS AND RESOURCE PLANNING.

I'M JUST LOOKING TO BRING UP THE PRESENTATION.

OKAY.

SORRY.

SO I'M GOING TO WALK THROUGH, UM, THE BACKGROUND OF, UH, THE RESILIENCY AS A SERVICE PROGRAM, AS WELL AS THE PROGRAM OVERVIEW.

AND THEN, UH, TAKE ANY QUESTIONS YOU ALL MIGHT HAVE.

IF WE CAN JUST GO TO SLIDE THREE.

THAT'D BE GOOD.

[00:15:03]

OKAY.

THANK YOU.

SO, UM, GROCERY STORES, UM, OTHER FORMS OF KIND OF CRITICAL LOW THROUGHOUT THE STATE HAVE BEEN PARTNERING UP WITH GENERATOR, GENERATOR, GENERATORS, GENERATION COMPANIES, UM, UH, LIKE, UH, CHIN AND ROCK A NAME THAT Y'ALL HAVE PROBABLY HEARD, UH, FOR SEVERAL YEARS NOW, UM, IN ERCOT, UH, TO PROVIDE RESILIENCY AND BACKUP POWER FOR THEIR FACILITIES.

UM, HEB PARTNERED WITH ENCHANTED ROCK, UM, LIKE IN 2016 AND STARTED THIS PROGRAM STARTED PROGRAMS LIKE THESE FOR THEIR STORES ALL OVER THE STATE.

AND THEY BASICALLY, UM, LOOK AT A CUSTOMER LIKE BEHIND THE METER TYPE, UH, CON CONSTRUCTIONS.

UM, AND THEY'RE LOOKING AT ANYTHING FROM LIKE A 250 KILOWATT TO, UM, UNDER 10 MEGAWATTS.

AND THAT'S FOR THOSE BEHIND THE METER TYPE, UM, ARRANGEMENT THIS, THESE ARE TO PROVIDE PROTECTION FOR, YOU KNOW, HURRICANES STORMS, YOU KNOW, ALL KINDS OF SITUATIONS THAT COULD, UH, YOU KNOW, PUT THEM IN AN OUTAGE SITUATION.

AND, UM, WHAT THE GENERATION COMPANIES DO IS THEY ESSENTIALLY, UM, MANAGE, UM, THESE ASSETS FOR THEM AND THEY ACTUALLY SELL THE GENERATION INTO THEIR ACCOUNT MARKET.

SO, UM, THEY'RE ABLE TO HEB OR ANY OTHER, UM, CUSTOMER, UH, THAT NEEDS RESILIENCY IS ABLE TO, UM, UH, HAVE, UH, ACCESS TO THIS RESILIENCY AT A LOWER COST THAN THEY NORMALLY WOULD HAVE, UH, THAN THEY WOULD NEED TO IF THEY OWNED IT STRAIGHT OUT OR EVEN LEASED IT.

SO THEY'RE ABLE TO LEASE IT AT A FRACTION OF THE COST, UM, WHEN WINTER STORM YURI HAPPENED, UM, YOU KNOW, THESE GROCERY STORES, UH, WITH BACKUP GENERATORS, UM, YOU KNOW, REALLY WERE ABLE TO MAINTAIN POWER THROUGHOUT, THROUGHOUT THE STORM, THROUGHOUT THE STATE.

AND SO THIS WAS A VERY VALUABLE FOR THEM AND IT WASN'T JUST, UM, YOU KNOW, THEM THAT, UH, BENEFITED FROM THIS THERE'S OTHER TYPES OF CRITICAL LOAD AS WELL, THAT WE'RE ABLE TO, UM, TAKE ADVANTAGE OF THAT BACKUP POWER, UM, AND DO SO AT AN AFFORDABLE, AFFORDABLE RATE.

UM, AFTER WINTER STORM YURI, UH, LEGISLATION WAS, UH, PASSED SB 3 98 THAT ESSENTIALLY, UM, ALLOWED GROCERIES OR FOOD SUPPLY CHAIN TO, UH, CONTRACT WITH THESE GENERATION COMPANIES IN NOEY TERRITORIES.

AND, UM, IT ALLOWED THEM TO NOT ONLY HAVE THIS GENERATION INSTALLED, BUT ALSO GET ACCESS TO THE WHOLESALE MARKET.

A PROVISION IN THAT LEGISLATION ESSENTIALLY GIVES NOAH'S RIGHT OF FIRST REFUSAL TO ACT AS WHETHER, UH, THAT GENERATOR OR AS QUEASY.

UM, BUT AT THE END OF THE DAY, THE BILL DOES REQUIRE FOR, UM, THE SERVICE TO, UM, ALLOW FOR INTERCONNECTION, UH, FOR THAT GENERATION.

UM, AND THERE IS, UM, UH, BASICALLY A STOP CLOCK.

SO THEY HA THEY HAVE A CERTAIN AMOUNT OF TIME THAT THEY HAVE TO BE ABLE TO TURN AROUND THAT INTERCONNECTION REQUEST AND, UM, CONNECT THEM TO THE GRID.

QUICK QUESTION.

YES.

UM, SO PRIOR TO SB 3 98, DID AUSTIN ENERGY HAVE, UH, ENCHANTED ROCK TYPE INSTALLATIONS IN OUR SERVICE TERRITORY? NO.

UM, WE JUST HAD PEOPLE THAT WOULD, UH, INSTALL, UM, THAT WOULD INSTALL GENERATION, UH, BUT WE DIDN'T HAVE AN ENCHANTED ROCK TYPE.

UM, UM, WE DIDN'T HAVE VENDORS SEEKING TO TAKE OUR CUSTOMERS, UM, THAT WE COULD KIND OF VISIBLY TELL IN OUR SERVICE TERRITORY, BUT THERE'S CERTAINLY SOME, YOU KNOW, THERE'S, WE, WE KNOW OF, UH, GENEROUS SMALL GENERATORS THAT HAVE, UH, THAT HAVE BEEN PUT IN PLACE, UM, AT SOME SCHOOLS AT SOME DIFFERENT, UH, LOCATIONS.

UM, WE HAVE TALKED TO DIFFERENT, UH, GENERATION COMPANIES LIKE GENERAC, UM, THAT HAVE COMMUNICATED TO US WHERE THEY WERE INSTALLED IN OUR SERVICE TERRITORY, BUT IT'S FAIRLY SMALL, UM, NOTHING REALLY LARGE AND SMALL MEANING LIKE W WHAT'S THE CAPACITY, HOW SMALL, UH, I MEAN UNDER 250 KILOWATTS.

OKAY.

OKAY.

THANKS.

I HAVE A COUPLE OF QUESTIONS CAUSE I WATCHED THE DEBATE WHEN THIS WAS TAKEN UP IN THE TEXAS HOUSE.

UH, AND IT, IT SEEMED, WELL, IT SEEMED LIKE THE SUGGESTION WAS MADE THAT IF YOU ARE A TARGET OR A WALMART, YOU, YOU BASICALLY HAVE A LICENSE UNLIMITED LICENSE TO SELL BACK, EVEN THOUGH MOST OF YOUR GOODS MAY BE NON GROCERIES.

UH, IN ESSENCE, IT'S A, THE ARGUMENT WAS MADE THAT IT'S A,

[00:20:01]

A GREAT BENEFIT TO THE LARGE RETAILERS WHILE YOUR SMALLER GROCERS RAILROAD SERVICE, UH, DON'T RECEIVE ANY THAT TYPE OF BENEFIT.

WHAT, UH, BECAUSE OF THE BREAK, BECAUSE OF THE BREAKEVEN POINT, UH, THE 250 KILOWATT HAVE ANY THOUGHTS ON THAT THE, THE GROCERS ARE RECEIVING A BENEFIT.

UM, THEY CAN, UH, INSTALL, UM, TYPICALLY THEY'RE STALLING UP TO A MEGAWATT DEPENDING ON THEIR SIZE OR RIGHT UNDER A MEGAWATT.

UM, THEY CAN AGGREGATE, SO HEB IS BENEFITING OR ANY OTHER GROCERS ARE FROM THIS TYPE OF INSTALLATION.

THEY'RE, THEY'RE ABLE TO ACCESS THE WHOLESALE MARKET AND THEY'RE ABLE TO, UM, ESSENTIALLY, UM, PROVIDE THIS RESILIENCY AT A FRACTION OF THE COST.

BUT IF I'M A, IF I'M A BIG BOX STORE LIKE A HOME DEPOT, I DON'T HAVE THAT SAME ACCESS TO THAT SAME INNER INTERCONNECTION AND PRICING.

RIGHT.

ABSOLUTELY.

THEY HAVE ACCESS TO IT AS WELL.

AND THERE'S NO REASON WHY THEY, I MEAN, THEY ARE, THEY ARE DOING THE SAME THING.

I THINK THE, THE, THE POINT OF THE BILL IS, IS THAT, UM, GROSS GROCERS WANTED TO, UM, BE ABLE TO ENSURE IN A NOEY TERRITORY THAT THEY WOULD BE ABLE TO GET RESILIENCY.

OKAY.

AND HOW DOES THIS, UH, CONCEPTUALLY COMPARE TO THE VALUE OF SOLAR FOR RESIDENTIAL CUSTOMERS? IN OTHER WORDS, IS, IS THE BENEFIT RECEIVED BY SELLING BACK THE EXCESS POWER, EXCESS POWER AS A GENERATOR, THE SAME AS A REZ? YOU KNOW, WE'RE TALKING APPLES AND ORANGES A LITTLE BIT, BUT I'D LIKE TO KNOW THAT COMPARISONS.

SURE.

UM, I WOULD SAY IT'S, IT'S EXTREMELY DIFFERENT, UM, IN THE SENSE THAT, UH, THIS PRODUCT, UM, CAN BE, UM, PROVIDED TO THE GRID, UM, AT ANY MOMENT OF THE DAY IN A MOMENT, IN AN INSTANT, IT IS NOT MITIGATED BY, UH, WHAT TIME OF THE DAY, WHETHER THE SUN IS SHINING, WHETHER THERE'S CLOUD COVER, UM, YES, THERE WILL BE FUEL ISSUES POTENTIALLY, BUT AT THE END OF THE DAY, THE VALUE PROPOSITION IS COMPLETELY DIFFERENT.

UM, SO NOW I'M A LITTLE CONFUSED THE WAY I READ THIS DESCRIPTION, IT APPEARED THAT THE GENERATION COMPANY MAINTAINS OWNERSHIP OF THE GENERATION.

THAT'S CORRECT.

AND SO DO, UH, DO THEY ENTER INTO SOME KIND OF CONTRACT WITH AGB, LET'S USE THAT EXAMPLE, UM, SO THAT WHEN THEY'RE SELLING BACK INTO THE MARKET, THAT HEB GETS SOME BENEFIT OF THAT, UM, PRIVATE ARRANGEMENTS CAN BE DONE IN A VARIETY OF WAYS.

UM, I THINK THAT THE END OF THE DAY, THE POINT OF THIS, UM, RELATIONSHIP IS THAT THE GENERATOR IS ABLE TO LEASE THIS, UH, ASSET TO THE, UH, CUSTOMER WHO NEEDS THE RESILIENCY.

AND THEN THEY'RE ABLE TO MONETIZE THAT ASSET IN A MARKET THAT ISN'T HEBS WHEELHOUSE OR EXPERTISE TO MONETIZE THAT ASSET.

SO THEY'RE LOOKING FOR SOMEONE ELSE TO DO THAT MONETIZATION FOR THEM.

ARE YOU AWARE OF ANY OTHER, UM, FOLKS IN THE, IN THE AUSTIN ENERGY SERVICE TERRITORY, OTHER THAN ENCHANTED ROCK THAT ARE, I MEAN, ARE YOU GETTING INQUIRIES FROM OTHER POTENTIAL VENDORS THAT ARE LOOKING TO SET UP SIMILAR TYPE ARRANGEMENTS? SO, UH, THE PROGRAM THAT I'LL BE EXPLAINING TO, UH, TO THE COMMISSION, IF Y'ALL WANT TO GO TO THE NEXT SLIDE? NO, NO, NO, NO.

THIS IS A, THESE ARE ALL GREAT QUESTIONS.

THAT'S WHY I'M HERE.

UM, SO AUSTIN ENERGY IS WORKING WITH VENDORS, UH, AND OUR CUSTOMERS.

THIS IS A CUSTOMER DRIVEN PROGRAM.

OUR CUSTOMERS, UM, HAVE A NEED FOR RESILIENCY.

UM, AND WE ARE WORKING WITH, UH, VENDORS THAT CAN PROVIDE THIS ASSET TO OUR CUSTOMERS.

AND, UH, WE WILL BE THE ONES THAT WILL BE MONETIZING THAT ASSET FOR OUR CUSTOMERS, UH, TO PROVIDE IT FOR THE LARGER PORTFOLIO BENEFIT.

WE WILL, WE, AS AN AUSTIN ENERGY WILL BE THE ONE MONETIZING IT, RIGHT? SO IN OTHER PARTS OF THE STATE, THE QUEASY IS THE GENERATOR, THE ENCHANTED ROCK.

WE'RE A LEVEL FOUR QUEASY.

WE HAVE THESE TYPES.

UM, WE, WE DO THIS WORK EVERY DAY.

AND SO WE WILL BE MONETIZING THESE ASSETS, UM, IN OUR SERVICE TERRITORY, AS OPPOSED TO HAVING THE VENDORS IN OUR SERVICE STORE SERVICE TERRITORY AS A QUEASY.

SO THE VENDOR WILL ENTER INTO, UH, A QSC SERVICES AGREEMENT WITH AUSTIN ENERGY.

WELL, WE'LL BE THE QUEASY,

[00:25:01]

SO WE'LL JUST, WE'LL ENTER INTO AN AGREEMENT WITH THE VENDOR.

SO THEN WE HAVE THOSE DISPATCH RIGHTS AND THEN, UM, THEY WILL BE IN AN, UH, AN AGREEMENT WITH OUR CUSTOMER, UH, AS A, UH, DOING THE MAINTENANCE ON THE ASSET THAT THEY OWN.

IS THERE ANY REASON AUSTIN ENERGY CAN'T BE SUPPLIED THE GENERATOR ITSELF? UH, WE WOULD LOVE TO DO THAT.

UM, I THINK, YOU KNOW, THERE I SAY WE WOULD LOVE TO DO THAT.

LET ME, LET ME STEP BACK.

UM, WE HAVE A, UM, A RESOURCE PLAN THAT DOES NOT ALLOW US TO OWN ANY FUEL GENERATION.

SO WE LOOK AT THAT SERIOUSLY.

COULD YOU, COULD IT BE, UH, SOME OTHER TYPE OF CLEAN ENERGY? UH, LET'S SAY, JUST LIKE I A BATTERY.

SO WE ARE, UM, AS PART OF OUR PROGRAM, WE ARE, UM, HAVE A SCOPE OR HAVE A CARVE OUT FOR THAT OPPORTUNITY.

UM, RIGHT NOW THE AFFORDABILITY OF THIS, UH, ASSET, UH, THAT'S FUEL-BASED THAT'S GAS-BASED, UM, IS, UM, IS MORE PALATABLE FOR OUR CUSTOMERS.

IT'S MORE AFFORDABLE TO OUR CUSTOMERS.

UM, WE ARE, YOU KNOW, WE HAVE A IT'S REALLY, WE LOOK AT THIS AS A BRIDGE FOR THOSE CUSTOMERS THAT WANT TO HAVE A SOLAR PLUS BATTERY TYPE, UM, COMBINATION.

UM, BUT AT THE END OF THE DAY, UM, THIS IS, UH, THE AFFORDABLE ASSET THAT PROVIDES RESILIENCY, WHERE SOLAR PLUS BATTERY IS NOT AS AFFORDABLE AND ISN'T ON THE SAME PLAYING FIELD.

SO WE ARE, YOU KNOW, UH, WE WANT THIS PROGRAM TO BE ABLE TO SERVE THOSE NEEDS, SERVE THAT ASSET OR THAT EMERGING TECHNOLOGY WHEN IT IS, UM, KIND OF RIPE FOR OUR CUSTOMERS FOR THIS SIZE.

UM, AND, AND, AND TO BE ABLE TO, AT THE END OF THE DAY, IT DOESN'T PROVIDE THE, IT ISN'T THE SAME VALUE THAT ASSET DOESN'T PROVIDE THE SAME VALUE IN THE ERCOT MARKET THAN, THAN THIS TYPE OF GENERATION DOES.

SO THIS SENATE BILL REQUIRES US TO ALLOW THIS TYPE OF ARRANGEMENT, SENATE BILL 3 98.

SO WHAT YOU'RE SAYING IS THAT THIS IS GOING TO BE A, THESE ARE CARBON PRODUCING GENERATORS.

WHAT DOES THAT DO TO AUSTIN ENERGY'S PLAN FOR SO, UM, CLEAN ENERGY? YEAH.

SO KIND OF A GOOD, GOOD NEWS.

UM, AND, YOU KNOW, I GUESS, I DON'T KNOW IF YOU SAY GOOD NEWS, BAD NEWS, UM, I GUESS BAD NEWS WOULD BE LEGISLATION IS REALLY REQUIRING US TO BE ABLE TO ALLOW THIS, UM, THESE ASSETS OR THESE ARRANGEMENTS, UH, TO BE IN OUR SERVICE TERRITORY.

UM, BY US PARTNERING UP WITH OUR CUSTOMERS AND OUR VENDORS, WE KNOW OUR CUSTOMERS, WE KNOW WHAT THEIR NEEDS ARE.

UM, WE ARE LOOKING TO CONSTRUCT THESE ARRANGEMENTS.

SO THEN WE'RE THE ONES THAT ARE DISPATCHING THESE ASSETS TO MEET THE GOALS OF OUR, OF OUR CUSTOMERS OR THE NEEDS OF OUR CUSTOMERS, BECAUSE WE'RE A LOAD SERVING ENTITY.

WE HAVE ALL ANCILLARY SERVICE REQUIREMENTS, UH, WE'RE EXPOSED TO, UH, HIGH PRICES.

AND SO W BIAS MANAGING THESE ASSETS.

WE AREN'T LOOKING TO RUN THEM, UH, WITH THE SAME OBJECTIVES AS A VENDOR, UM, AS A GENERATION OWNER WOULD, UM, WE'RE LOOKING TO, UM, OUR RUNTIME WOULD, WOULD BE, UH, A FRACTION OF THE RUNTIME THAT, UM, THEN WE SEE IN OTHER SERVICE TERRITORIES, UM, WE'RE LOOKING AT ESSENTIALLY, UM, RUNNING THEM, UH, LESS THAN 10% OF THE YEAR.

SO SOMEWHERE BETWEEN TWO AND 300 HOURS.

UM, AND SO, UH, THIS IS, AGAIN, OUR OBJECTIVES OF MANAGING AND USING THESE ASSETS, UH, WOULD BE, WE HAVE A DIFFERENT RISK PROFILE THAN MAYBE THOSE VENDORS DO IN OTHER PARTS OF THE STATE.

UM, WE'RE LOOKING TO PROTECT OUR PORTFOLIO, OUR CUSTOMER'S PORTFOLIO.

SO, UM, THAT REALLY HAS US RUN THEM DIFFERENTLY.

SO, UM, WE ALSO THROUGH REACH, WE, UM, REPORT ON OUR EMISSIONS, UH, WE REPORT OUR MISSIONS OF, UH, NOT ONLY OUR GAS-FIRED ASSETS, BUT ALSO, UM, YOU KNOW, OUR FAYETTE.

SO THIS WOULD BE WRAPPED INTO THAT TO ENSURE THAT WE'RE MEETING THOSE GOALS, THAT WE HAVE OUR RESOURCE PLAN.

SO WE WOULD BE REPORTING ON THESE EMISSIONS.

UM, AND, UM, YOU KNOW, UH, LIKE I SAID, UH, LOOKING TO MINIMIZE, UH, THE, YOU KNOW, THE CARBON EMISSION THAT COMES FROM THEM BALANCING THE VALUE THAT THEY PROVIDE IN THE MARKET, AS FAR AS A HEDGING TOOL,

[00:30:02]

IS THERE A CAP ON THE NUMBER, UM, THAT, THAT CAN GO INTO A NOEY SERVICE STATUS? SO THE SENATE BILL DOESN'T HAVE A CAP.

UM, OUR PROGRAM CURRENTLY IS IT DOES HAVE A CAP, RIGHT? THE SENATE BILL HAS A CAP AT WHICH YOU'RE NOT REQUIRED TO APPROVE THE INTERCONNECTIONS.

THERE'S A CAP IN THE BILL.

IT'S 5% OF YOUR PEAK LOAD OR 300 MEGAWATTS.

I DON'T THINK YOU'D MEET THAT, BUT, UM, THERE IS A CAP AND SECTION, AND THAT SAYS, OKAY, YOU'RE NOT REQUIRED TO INTERCONNECT ONE OF THESE FACILITIES IF ON THAT DATE, UM, THE TOTAL AGGREGATE CAPACITY IS EITHER 5% OF YOUR AVERAGE SUMMER PEAK LOAD OF THE 15 MINUTE SUMMER PEAK LOAD OR 300 MEGAWATTS.

SO THERE IS, THERE IS A CAP IN THE BILL DOESN'T MEAN YOU CAN GO ABOVE IT IF YOU WANT IT TO, BUT IT MEANS YOU'RE ALLOWED TO SAY NO.

SO, UM, WE CURRENTLY OUR PROGRAM IS WE HAVE A 50 MEGAWATT BEHIND THE METER CAP THAT HAS BEEN PLACED THAT WE HAVE, THAT OUR, OUR LEADERSHIP HAS PLACED ON THIS PROGRAM FOR BEHIND THE METER FOR THOSE SMALLER INSTALLATIONS, AND THEN A 200 MEGAWATT FOR OUR LARGER, UH, INSTALLATIONS FOR IN FRONT OF THE METER.

SO, UM, LOAD THAT IS ON CRITICAL, UH, CRITICAL FEEDERS.

UM, SO WE, WE HAVE A SELF-IMPOSED CAP.

UM, SO THEN WE CAN MEET THE NEEDS OF OUR CUSTOMERS, UM, THAT WILL, UM, GO OUT AND MEET, GET THIS NEED MET SOMEHOW WITH, OR WITHOUT US.

UM, AND, UH, SO THAT'S HOW WE'VE CONSTRUCTED THE PROGRAM TO DATE.

OKAY.

EXPLAIN THAT PART ONE MORE TIME.

SORRY.

SO IT MEETS THE NEED WITH HER WITHOUT YOU.

SO LET'S SAY THE, WHERE WE GET INTO A SITUATION WHERE WE'RE ABOVE THE 50 MEGAWATT BEHIND THE METER PROGRAM CAP.

UM, BUT WE HAVEN'T HIT THE STATUTE CAP.

UM, AND IT WOULD, SO AS A F IF I'M UNDERSTANDING IT, RIGHT, THE LEGISLATION WOULD REQUIRE AUSTIN ENERGY TO INTERCONNECT.

UM, BUT THEN THEY WOULDN'T BE FUNCTIONING AS THE QUEASY FOR THAT ASSET, OR HOW, HOW WOULD THAT WORK? WELL, THAT'S A GOOD QUESTION.

UM, WE DON'T RIGHT NOW, THE WAY THAT WE'VE CONSTRUCTED THE PROGRAM OR THE CAPS ON THE PROGRAM IS WE'VE IDENTIFIED OUR CUSTOMERS' NEEDS THAT WE UNDER, AS WE UNDERSTAND THAT TO BE, SO OUR CUSTOMERS HAVE COME TO US, THEY VERBALIZE THESE NEEDS.

AND SO WE'RE WORKING TO MEET THOSE NEEDS.

SO WE HAVE, UH, CONSTRUCTED THESE PROGRAMS WITH THIS TA WITH TOTAL NUMBERS.

SO THEN WE CAN HAVE SOME ROOM TO GROW.

UM, SO WE DON'T RIGHT NOW FORESEE THAT IT WOULD EXCEED THOSE NUMBERS.

UM, LIKE I SAID, WE'VE GONE OUT AND I'VE IDENTIFIED ALL THOSE KEY ACCOUNT, ALL THOSE CUSTOMERS THAT, THAT WOULD, THAT WOULD PARTICIPATE, UM, IF IT, IF IT SO HAPPENS THAT, YOU KNOW, THAT NEED IS MUCH LARGER THAN WE WOULD, THEN WE WOULD, YOU KNOW, ADDRESS IT AT THAT TIME.

BUT FOR RIGHT NOW, EVERYTHING WE'VE IDENTIFIED WITH ALL OF THE CUSTOMERS THAT HAVE, UM, THAT HAVE EXPRESSED INTEREST THAT HAVE EXPRESSED NEED A DESIRE TO MOVE FORWARD, MOVE FORWARD WITH THIS.

THAT'S WHY WE'VE CONSTRUCTED.

UH, WE'VE PUT THOSE CAPS, UM, IN PLACE BASED ON, BASED ON THAT NEED, JUST CLARIFY, IS THAT 50 MEGAWATTS BEHIND THE METER, A SERVICE TERRITORY WIDE OR ANY, LIKE, I WOULD MAYBE BE A LARGE CUSTOMER, BUT THAT'S FOR THE AA SERVICE AREA 50 AND THEN 200, IT'S IT ISN'T YES, IT WOULD BE A III SERVICE AREA.

OKAY.

AND SO BY LIMITING THE NUMBER OF HOURS, ARE YOU REALLY THINKING ABOUT THIS PARTICIPATING IN THE ENERGY MARKET IN SOME WAY AND NOT THE ASMR MARKET, OR YOU'RE GOING TO BE DISPATCHING THESE AS SETTLEMENT ONLY DG OR ANY EXPLAIN TO THE DEGREE THAT A SOC COMPETITIVE? SURE, SURE.

AND IF WE COULD GO TO THE NEXT SLIDE, IT'LL HAVE SOME LANGUAGE, UH, WITH REGARDS TO, UM, THE PROGRAM BENEFITS.

UM, SO FOR THE BEHIND THE METER, SO THE SMALLER PROGRAM, THE 50 MEGAWATTS, ESSENTIALLY, THIS IS, UH, LIKE, UH, UH, COMMISSIONER TELL-ALL MENTIONED TO, UH, UH, SETTLEMENT ONLY.

SO WE'RE ESSENTIALLY WE'RE BACKING OFF LOAD.

UM, THIS HAS A LITTLE MORE LIMITED BENEFITS THAN, UM, THE, IN FRONT OF THE METER.

UM, BUT IT STILL DOES PROVIDE QUITE A BIT OF VALUE.

UM, AND, UH, IT CAN HELP WITH, UM, UH, LOAD REDUCTION.

IT HELPS WITH, FOR CP.

IT HELPS, UH, IT, IT REALLY DOES, UH, PROVIDE SOME VALUE WITH OUR, UH, PRICE

[00:35:01]

SEPARATION THAT WE EXPERIENCE, UH, AT OUR LOAD ZONE FROM THE REST OF THE MARKET.

UM, AND THEN OF COURSE IT DOES PROVIDE A LOT OF, UH, BENEFITS TO OUR CUSTOMER, UM, JUST IMPROVED RESILIENCY, BUSINESS CONTINUITY.

UM, IT'S A MORE AFFORDABLE, UH, MECHANISM FOR THEM TO GAIN THIS RE RELIABILITY.

UM, AND, UM, UH, THEY'RE NOT HAVING TO MANAGE THIS ASSET.

UM, UH, THE CONSTRUCT, UM, ALLOWS THEM TO BE ABLE TO, UM, YOU KNOW, WORK IN A RELATIONSHIP THAT THAT'S ALREADY TAKEN CARE OF.

SO, UM, WITH THE REGARDS TO THE, IN FRONT OF THE, UM, ASSETS, UM, THAT'S A, UH, HAS A LITTLE BIT, HAS MORE VALUE TO US IN THAT WE CAN USE IT FOR ANCILLARY SERVICE.

UM, IT DOES HAVE A STRONGER, UM, UH, IMPACT ON THAT LOAD, THAT LOAD PRICE, UH, SEPARATION, AND, UH, WE CAN, UM, USE IT FOR, UH, PRICE SPIKES.

SO WHEN WE DO SEE THOSE PRICES SPIKING, UH, IN THE MARKET, UH, THEN WE WOULD BE DISPATCHING THESE UNITS, UH, FOR THAT PURPOSE.

SO ON THE, IN FRONT OF THE METER, HOW DOES THAT, HOW DOES THAT WORK? IS THERE A, UH, YOU'VE GOT A GENERATION ASSET INTERCONNECTING WITH AN EPS MEANER AND, AND LOAD IS THEN LATER IN OUR CONNECTED BEHIND IT.

HOW, HOW IS THAT? UH, I, I DON'T UNDERSTAND HOW THE IN FRONT OF THE REMAINDER WOULD WORK.

SO IN FRONT OF THE METER, IF, UM, MY, IF THAT IT'S JUST A LARGER CONSTRUCT, SO INSTEAD OF IT ACTUALLY SHOWING LESS LOAD TO ERCOT, UM, IT WOULD ESSENTIALLY JUST KICK ON THAT GENERATION.

UM, I WOULD BE USING IT WHEN MY CUSTOMER DOES NOT NEED IT.

SO, BUT THEN, I MEAN, THE LOAD IS BEHIND THE LOAD IS BEHIND THE GENERATOR IN THAT INSTANCE, RIGHT? YES.

SO, I MEAN, I'M TRYING TO THINK HOW THAT GETS BUILT.

LIKE, IS IT, IT, IT GOES STRAIGHT INTO THE TRANSMISSION SYSTEM, PRESUMABLY THE LOAD IS ALREADY EXISTING AND THEY'VE GOT LIKE AN IDR METER OR SOMETHING.

SO THEY'RE ESSENTIALLY, NOW THEY'RE HIDING THE GENERATION, RIGHT.

THEY'RE USING THE GENERATION.

OKAY.

THANK YOU.

I MEAN, LET ME ASK, UH, ALL OF WHICH IS I CAUGHT SOME OF THE DEBATE, BUT I, UH, AT THE END OF THE DAY AND DIDN'T WATCH THE SENATE PART, BUT DID, UH, TEXAS PUBLIC POWER ASSOCIATION, UM, MUNIES, UH, AND, AND FOR THAT MATTER, THE CO-OPS DID THEY SUPPORT THIS LEGISLATION? UM, MUNICIPALS WORKED WITH, UH, THE HEBS, UM, TO HELP, UM, UM, WORK ON LANGUAGE, UM, TO, UM, I GUESS, MAKE IT AS PALATABLE AS POSSIBLE SINCE THIS WAS SOMETHING THAT WAS GOING TO HAPPEN REGARDLESS.

I UNDERSTAND.

YEAH.

AND JUST TO GIVE SOME CONTEXT, UM, SB 3 98, IT HAD NOTHING TO DO WITH THIS AS B3, 98 WAS A SOLAR BILL OF RIGHTS, RENEWABLE DISTRIBUTED BILL.

THIS WAS AN AMENDMENT THAT GOT ADDED TO IT IN THE HOUSE DUE TO, UM, PRESSURE FROM LEADERSHIP IN THE HOUSE.

UH, SO IT WAS THIS A COMPLETELY SEPARATE BILL THAT GOT ADDED TO THE SB 3 98, IF I REMEMBER.

RIGHT.

UM, BUT MY QUESTION, THE BILL ALLOWS YOU, YOU AUSTIN ENERGY AS THE MUNI TO SET THE APPROPRIATE FEES SO THAT YOU CAN BE THE QUEASY, RIGHT.

IS THERE A, IS THERE A PUBLISHED TARIFF? NO.

SO IS IT CONTRACT BY CONTRACT OR HOW DO WE, THIS IS A PRODUCT THAT'S GOING TO BE IN THE WHOLESALE MARKET.

SO THIS IS GOING TO BE A SEPARATE AGREEMENTS THAT WE ESTABLISH WITH THE VENDOR AND WITH OUR CUSTOMER.

BUT YOU, IN OTHER WORDS, YOU'RE NOT DOING THIS FOR FREE FOR THEM RIGHT THERE.

THEY'RE PAYING US TO ALLOW US TO USE THIS RESOURCE IN A WAY THAT'S GOING TO BENEFIT AUSTIN ENERGY CUSTOMERS.

WE'RE USING THE RESOURCE, THEY'RE NOT USING THE RESOURCE.

SO AT THE END OF THE DAY, THERE'S A VALUE THAT THESE ASSETS HAVE IN THE MARKET.

SO AT THE END OF THE DAY FOR MY CUSTOMERS, IT SHOULD BE COST NEUTRAL BECAUSE WE'RE GOING TO BE PAYING TO USE THESE ASSETS, BUT I'M GOING TO BE GENERATING VALUE FROM THOSE ASSETS IN THE MARKET MARKET.

BUT WE'RE NOT PROVIDING, THEY'RE BUILDING THE FACILITY BECAUSE YEAH, THEY'RE BUILDING FACILITY, YOU'RE THE QUEASY.

THAT'S UTILIZING THE RESOURCE AND DETERMINING WHEN TO USE IT.

THEY'RE USING IT FOR THEIR OWN NEEDS.

NOPE.

THEY DON'T USE IT AT ALL.

IT HAS, THEY HAVE NO ACCESS TO IT.

I HAVE FULL ACCESS TO

[00:40:01]

IT, OR THAT'S THE WHOLE IDEA THAT THEY HAVE BACKUP POWER WHEN I'M SORRY.

I THOUGHT, I THOUGHT YOU WERE TALKING ABOUT THE VENDOR.

OUR CUSTOMER IS THE, IS THE REASON THAT ASSET IS THERE IS BECAUSE MY CUSTOMER NEEDS IT.

YES.

AND I APOLOGIZE.

SO OUR CUSTOMER DOES PAY A PRO A CERTAIN PORTION OF THAT COST, SO THEY CAN HAVE THAT RESILIENCY IN THEIR BACKYARD.

THAT'S WHAT I MEANT THE CUSTOMER IS PAYING.

AND IS THAT A PUBLISHED TARIFF? IT'S ON A CASE BY CASE.

YES.

BUT YOU'RE TREATING, HOW DO WE KNOW THAT WE'RE TREATING CUSTOMERS SIMILARLY? WELL, THE PR THE PROGRAM FOR THE BEHIND THE METER HAS A CERTAIN APPROVED VALUE THAT WE'RE ALLOWED TO OFFER.

RIGHT.

AND THEN THE, THEN THE CUSTOMER HAS TO DETERMINE IF THAT ARRANGEMENT, YOU KNOW, WORKS FOR THEM.

UM, AND THEN SIMILARLY FOR THE, IN FRONT OF THE METER, THERE'S SOMETHING THAT IS APPROVED, JUST LIKE ANY OTHER WHOLESALE PRODUCT THAT WE MANAGE, UM, FOR OUR CUSTOMERS.

THAT IS A NUMBER THAT, THAT IS AN INTERNAL NUMBER.

IT'S A COMPETITIVE NUMBER BECAUSE IT'S A PRODUCT THAT'S IN THE WHOLESALE MARKET, UM, THAT WE PROVIDE FOR EITHER BEHIND THE METER OR IN FRONT OF THE METER OF CUSTOMERS.

OKAY.

I'M TRYING TO, I'M, I'M STRUGGLING WITH ALL THIS TROUBLE ANYWAY, GO AHEAD WITH YOUR PRESENTATION.

SO IF WE CAN GO TO THE NEXT SLIDE.

OKAY.

SO JUST SOME OF THE KEY TAKEAWAYS, UM, THIS PROGRAM IS ABOUT PROVIDING RESILIENCY, UM, AND SAFETY FOR OUR CUSTOMERS AND FOR OUR COMMUNITY.

UM, OUR CUSTOMERS ARE DEMANDING THIS, UM, LIKE I SAID, THE REASON THAT THOSE NUMBERS WERE CREATED AS FAR AS THE, UH, THE BEHIND THE METER AND THE IN FRONT OF THE METER, UM, CAP, UM, IS BECAUSE OF THE, UM, THE NUMBER OF, OF, OF, UM, MEGAWATTS THAT OUR CUSTOMERS HAVE, HAVE, HAVE ASKED FOR RESILIENCY.

UM, SO THAT'S HOW THAT WAS DRIVEN.

THAT'S HOW THOSE NUMBERS WERE DETERMINED.

UM, THEY, THE, THESE DISTRIBUTION FACILITIES WILL BE, THEY WILL BE, UM, INSTALLED WITH, OR WITHOUT OUR PROGRAM.

AND WE HAVE, UM, WORKED TO, UM, PROVIDE AN ARRANGEMENT THAT ALLOWS US TO STAY CONNECTED WITH OUR CUSTOMERS, KNOW WHAT OUR CUSTOMER'S NEEDS ARE, MEET THOSE CUSTOMER'S NEEDS, AND THEN STILL MANAGE, UM, THE AMOUNT OF ASSETS, UM, THAT POP UP IN OUR SERVICE TERRITORY AND THE AMOUNT OF EMISSIONS THAT THESE WILL, UM, PRODUCE.

UM, SO UNDER THE PROGRAM, THESE ASSETS ARE GONNA RUN, UM, FOR ABOUT 10% OR LESS ANNUALLY.

UM, AND THE WAY WE DETERMINE THAT IS BECAUSE WE HAVE A LOT OF DATA AROUND, UM, THE AMOUNT OF, UH, RUNTIME ASSETS, LIKE THESE RUN IN THE MARKET FOR, TO MEET OUR NEEDS.

SO WE HAVE THOSE TYPES OF ASSETS, UM, UH, I'M A LITTLE BIT LARGER SKILL, BUT, UM, YOU KNOW, AT DECKER AND AT SANDHILL, SO WE KNOW HOW THEY RUN.

SO WE, WE, WE HAVE THAT DATA, WE KNOW HOW WE USE THEM, WE KNOW HOW WE RUN THEM.

SO WE THAT'S HOW WE CAN COME UP WITH THESE NUMBERS.

LIKE I MENTIONED BEFORE, NATURAL GAS, UH, WE LOOK AT NATURAL GAS AS A BRIDGE FUEL, UM, YOU KNOW, LOOKING TO, UH, ROLL OUT A SOLAR STORAGE, UH, UH, ARRANGEMENT, UH, WHEN IT'S SOMETHING THAT, UM, MAKES SENSE FOR OUR, THAT OUR CUSTOMERS WANT, THEY WANT THAT AS A SOLUTION.

UM, AND THEN, UH, RAZ PASSES THESE, UH, RELIABILITY AND COST SAVING COST SAVINGS BENEFITS, UH, TO OUR CUSTOMERS, UM, THAT OTHERWISE WOULD NOT BE CAPTURED, UH, IF WE WERE NOT PART OF THIS PROCESS.

AND I THINK THAT'S THE LAST ONE.

SO I THINK, UH, THIS TOTALLY MAKES SENSE.

I THINK, UM, AS THE PROGRAM, AS YOU'VE LAID IT OUT, I THINK IS, UH, IT SOUNDS GREAT.

UM, MY, I GUESS I, WOULD YOU BE REQUIRED TO BE THE QSC FOR THESE ASSETS, LIKE, IS, IS, COULD WE COULD PASS UP, WE COULD PASS UP THE QSC.

YES.

AND SO, BUT I, SO AS, AS I'M INTERPRETING THIS, I THINK THAT BY SERVING IN THE QSC ROLE, YOU'RE, WE'RE, WE'RE ABLE TO, YOU KNOW, EXTRACT SOME VALUE FOR MORE THAN JUST THE SINGLE CUSTOMER THAT'S BEING SERVED BY THE RELIABILITY SERVICE THAT THE, THAT THE VENDOR IS PROVIDING.

AND YOU'RE RIGHT.

OKAY.

GO AHEAD.

SO I'M INTERESTED IN FOLLOWING UP.

I WANT TO KNOW, LIKE, LIKE SHOW ME THE MONEY, HOW ARE WE GOING TO SEE WHAT THIS PROGRAM GENERATES IN REVENUE FOR A IT'S

[00:45:01]

ABOUT PROTECTING OUR, UH, CUSTOMERS, UM, PRICE RISK.

SO WHETHER IT IS, UM, BACKING OFF LOAD, SO WE'RE NOT HAVING TO PURCHASE AS MUCH LOAD FROM ERCOT, UM, DURING HIGH PRICED, UH, HIGH PRICED EVENTS, UH, WHETHER IT IS, UM, PROVIDING ANCILLARY SERVICES, WHICH ARE VERY, VERY HIGH PRICED IN THE MARKET.

SO ALL OF THOSE THINGS ARE, ARE, UM, OBLIGATIONS, UM, AND RISK THAT WE HAVE IN THE WHOLESALE MARKET.

AND SO THAT'S HOW WE WOULD BE UTILIZING THESE ASSETS AS A LOWER COST SOURCE THAN THE ANCILLARY SERVICES ON THE MARKET AS A LOWER COST THAN GOING TO A BANK AND BUYING A CALL OPTION.

OKAY.

AND SO FOR THE CUSTOMER, THIS WILL BE AT A LESSER PRICE THAN THEM INSTALLING A BEHIND THE METER GENERATOR.

UM, I WOULDN'T, UH, WELL, IF THE CUSTOMER DID IT ON THEIR OWN, UM, AND DIDN'T TAKE ADVANTAGE OF ANY MARKET OPPORTUNITY THEN, AND THEY WERE PAYING THE FULL PRICE, THEN, THEN IT WOULD DEFINITELY BE, I MEAN, IT IS, YOU KNOW, MORE AFFORDABLE FOR THEM.

THIS ARRANGEMENT IS MORE AFFORDABLE FOR THEM THAN JUST NOT DOING ANYTHING, UH, AS FAR AS TRYING TO TAKE ADVANTAGE OF ANY KIND OF OPPORTUNITY IN THE ERCOT MARKET, IF THAT'S WHAT YOU MEAN.

WHEN DO YOU THINK YOU'LL GO LIVE WITH THIS? I'M SORRY, WHAT WAS THE QUESTION? WHEN DO YOU THINK YOU'LL GO LIVE WELL? UH, WE WOULD LIKE TO, UH, LAUNCH IN THE FALL.

UM, I DON'T HAVE A TIMELINE FOR YOU BECAUSE WE ARE, UM, I'M STILL, YOU KNOW, WORKING ON SEVERAL ASPECTS OF THE PROGRAM, BUT, UM, WE, WE, WE ARE HOPEFULLY JUST THREE OR FOUR MONTHS AWAY FROM BEING ABLE TO ACCEPT OUR FIRST INTERCONNECTION AGREEMENT.

SO ERICA, THIS IS CARRIE.

I MEAN, TELL ME IF I'VE GOT THIS WRONG, BUT THIS, THIS SEEMS LIKE A GREAT IDEA TO ME FIRST OFF, BECAUSE IT'S GOING TO HAPPEN WHETHER WE WANT IT TO, OR NOT.

SECONDLY, BY US MANAGING THIS ASSET, DO TWO THINGS.

WE MAINTAIN OUR RELATIONSHIP WITH THE CUSTOMER, WHICH IS GOOD.

AND, UH, WE ALSO HAVE THE OPPORTUNITY TO MANAGE THE ASSET IN A WAY THAT'S COMPATIBLE WITH OUR OWN, UH, OR IT'S MORE COMPATIBLE WITH OUR OWN GENERATION GOALS EXACTLY.

WITH OUR ENVIRONMENTAL GOALS.

I'M GLAD YOU SEE IT THAT WAY.

CAREY, WE DO TOO WELL.

WELL, THESE AGREEMENTS BE PUBLIC INFORMATION AVAILABLE AND EVEN THE FORM AND FORMAT OF THE AGREEMENT, IF NOT THE PRICE.

SO, UM, OUR WHOLESALE, UH, CONTRACTS ARE COMPETITIVE BY NATURE AND, UM, IT'S REALLY NOT IN OUR CUSTOMERS ARE IN OUR CUSTOMER'S BEST INTEREST FOR THOSE TO BE PUBLIC.

SO THEY'RE ALL PROTECTED.

UH, BUT IN TERMS OF FORM AND FORMAT, UH, I, I, I UNDERSTAND THE POINT ON PRICING, UH, BUT IN TERMS OF THE WHAT'S IN THERE, UH, WHICH, UH, IN, IN ESSENCE HELPS US ESTABLISH POLICY, UH, WILL THAT INFORMATION BE AVAILABLE FOR US TO LOOK AT? UM, WE WOULD, YOU KNOW, I, I DON'T SEE ANY REASON WHY WE COULDN'T PROVIDE KIND OF A HIGH LEVEL OVERVIEW OF WHAT IS IN THE CONTRACT.

UM, BUT, UH, JUST PUBLISHING THE CONTRACT, UM, IS NOT SOMETHING THAT WE DO WITH ANY OF OUR WHOLESALE PURCHASE AGREEMENTS.

AND LET ME, IN TERMS OF SEPARATING THIS OUT, UH, WELL, THAT INFORMATION BE AVAILABLE IN THE AGGREGATE ASSUME ON ADWORDS FOR FOUR IN THE AG, IN AN AGGREGATED FORM FOR US TO LOOK AT.

SO, YOU KNOW, PART OF THE REASON OF WANTING TO COMMUNICATE THE PROGRAM TO THE COMMISSION IS, SO THEN WE COULD REPORT ON THE PROGRAM, UM, YOU KNOW, THIS IS A, A VALUE ADD FOR OUR ONE CUSTOMER THAT NEEDS RESILIENCY AND THEN A WHOLE PORTFOLIO OF CUSTOMERS THAT NEEDS PRICE PROTECTION.

SO, UM, IN THAT VEIN, UH, JUST LIKE WE REPORT ON REACH, UM, TO THE COMMISSION TWICE A YEAR, UM, YOU KNOW, WE'RE VERY EXCITED TO BE ABLE TO REPORT HOPEFULLY THE SUCCESS, YOU KNOW, THAT WE ARE WORKING ON, UH, WITH REGARDS TO THE PROGRAM, BUT ALWAYS KNOWING THAT THERE'S A CERTAIN COMPETITIVE NATURE WHEN WE'RE, UH, PARTICIPATING IN THE WHOLESALE MARKET.

[00:50:01]

UM, SO WE WOULD BE ABLE TO BRING YOU KIND OF HIGH-LEVEL TYPE INFORMATION.

I HAVE JUST ONE QUESTION.

UM, I'M TRYING TO ENVISION THIS.

DO YOU ANTICIPATE THAT, UM, A CHAIN GROCERY STORE, UH, WOULD INSTALL, UM, UH, ART CONTRACT FOR A UNIT AT EACH OF THEIR LARGE FACILITIES? YES.

OKAY.

AND REMIND ME, IS, IS IT JUST GROCERY STORES THAT THAT ARE, UM, SO OUR, UH, WE'RE LOOKING AT CRITICAL LOAD, WHICH IS A PRETTY LARGE, YOU KNOW, DEFINITION YOU CAN THINK OF HOSPITALS, EMERGENCY CENTERS, URGENT CARE, ANYTHING, UH, THAT IS, UH, SUSTAINING, UM, W UM, LIKE, UH, LIFE SUPPORT, UM, BLOOD TISSUE CENTERS, UM, UH, PLACES THAT NEED TO PROVIDE BUSINESS.

I MEAN, THERE'S, THERE'S A LOT OF TH TH IT'S, THERE'S A LOT OUT THERE THAT IS ACTUALLY CRITICAL LOAD.

IF YOU THINK ABOUT IT, I'M LIMITED TO CRITICAL LOAD.

YOU HAVE TO QUALIFY AS CRITICAL LOAD TO, TO PARTICIPATE.

SO WE LOOK AT CRITICAL LOAD AS WELL AS LOAD THAT'S ON CRITICAL FEEDERS.

OKAY.

RIGHT NOW THAT IS WHAT IS KIND OF ABSORBING THAT THE FULL AMOUNT OF THE MEGAWATTS OF BOTH THE BEHIND IN FRONT OF THE METER, UH, UM, PROGRAM RIGHT NOW.

SO I SEE THAT AS A THIRD BENEFIT TO CARRIE'S POINT EARLIER, UM, AS, AS, I MEAN, IF WE GET INTO ANOTHER, YOU KNOW, W YURI SITUATION, WE'VE GOT, UM, BACKUP GENERATION IN PLACE, OBVIOUSLY FOR THAT INDIVIDUAL CUSTOMER, BUT THEN ON, UM, CRITICAL CIRCUITS AND, AND KEEPING THOSE LINES OPEN FOR POTENTIALLY BEING ABLE TO ROLL BLACK OUTS IF WE NEED TO HAVING MORE.

SO IT'S NOT QUITE SEXUALIZATION, BUT IT'S, YOU KNOW, IT'S, IT'S TRYING TO HELP.

I, I'M EXCITED.

I THINK THIS SOUNDS REALLY COOL.

I'M GLAD TO HEAR.

THANK YOU.

SO, ERIC, I THINK I UNDERSTAND THAT IF AES, THIS IS MY THING, IT'S LIKE, I CAN UNDERSTAND THE HEDGING BENEFIT FOR A E, BUT IS THERE ALSO AN ELEMENT HERE WHERE IN THE PROGRAM IT PROVIDES SOME WHOLESALE PRICE HEDGING FOR THE CUSTOMER, OR DOES IT ALLOW THEM TO DO SOME, UH, DEMAND CHARGE MANAGEMENT? SO THE, UM, THE WHOLESALE PRICE, UM, PROTECTION OR, UM, KIND OF, UM, UH, ASSET MANAGEMENT IN THE WHOLESALE MARKET IS GOING TO BENEFIT THE ENTIRE PORTFOLIO BECAUSE THE ENTIRE PORTFOLIO IS THE ONE THAT'S GETTING ACCESS TO THAT.

UM, TO THAT ASSET, THE CUSTOMER ITSELF WON'T BE RECEIVING ANYTHING DIRECTLY THEY'LL BE RECEIVING.

UM, THEY WILL BE RECEIVING IT THROUGH BEING PART OF A LARGER PORTFOLIO, BUT THEN THEY ALSO RECEIVE THE BENCH.

SO THEY, THEY ACTUALLY HAVE, THEY RECEIVED, YOU KNOW, SEVERAL BENEFITS, UM, A MORE AFFORDABLE RESILIENCY, UM, SERVICE, UM, UH, BEING PART OF A PORTFOLIO THAT IS, UM, BEING PROTECTED, UM, BY THESE ASSETS.

UH, AND THEN, YOU KNOW, LIKE, UM, UH, COMMISSIONER MENTIONED, UM, CHAIRMAN MENTIONED, UH, THE, THE COMMUNITY IS BENEFITING AS WELL BECAUSE YOU'RE A LARGE, YOU'RE A PART OF THIS LARGER HOLISTIC, UM, SYSTEM.

SO I, THE, THE CUSTOMER DOESN'T RECEIVE IS REALLY RECEIVING THOSE WHOLESALE BENEFITS BECAUSE THEY'RE PART OF THE PORTFOLIO.

IF I'M ANSWERING THAT PROPERLY, THEY ALSO RECEIVED THE FOUR CP, UM, THEY'RE BACKING OFF LOAD.

SO THEY'RE GOING TO HAVE A LOWER, UM, YOU KNOW, THAT, THAT REGULATORY CHARGE IS AFFECTED.

SO THERE'S, THAT'S DIRECTED BY THE CUSTOMER OR BY YOU.

SO WHEN THE CUSTOMER HAS A NEED THERE, THE FIRST ONE, THE NEED, THEY'RE THERE THE VERY FIRST CALL ON THIS ASSET WHEN THEY NEED IT.

AND SO COULD THEY SAY, WELL, WHO'S IDENTIFYING FOR CP IS THE CUSTOMER.

I MEAN, AS WE'VE DISCUSSED THERE, THEY'RE NOT IN THE MIDDLE OF, WE WOULDN'T BE MAKING THE CALL YEAH.

FOR THEM, THEIR NEED IS FOR EMERGENCY SERVICES, NOT FOR ANY OTHER, BECAUSE THEY, THEY, THEY, THAT'S AN INDIRECT, THEY'RE NOT PART OF A LOAD CO-OP PROGRAM.

THIS IS NOT PART OF A LOAD CO-OP PROGRAM.

UM, THIS HAS ITS OWN WHOLESALE BENEFIT, UM, UM, MECHANISM, UM, BUT THEY BENEFIT JUST BY BEING PART OF THAT LARGER PORTFOLIO.

AND SO, I MEAN, BUT THE CUSTOMER WOULD BE INCENTIVIZED TO TURN IT ON DURING, FOR CP, IF, UM, CAN THEY, CAN THEY REQUEST THAT THAT BE DONE? UM, IT REALLY DOESN'T.

UM, IF THAT IS NOT SOMETHING THAT REALLY IS IN THEIR BEST INTEREST TO DO, BECAUSE THEN THE COST OF THAT ASSET STARTS

[00:55:01]

TO GO UP.

SO IF THEY'RE NOW TRYING TO PARTICIPATE IN THAT VALUE, THEN THEY HAVE TO PAY FOR IT.

I SEE.

OKAY.

I GOT IT.

SO, SO AGAIN, AUSTIN ENERGY WILL BE MANAGING THE ASSET AS A PART OF ITS GENERATION PORTFOLIO.

EXACTLY.

OKAY.

THAT WAY EVERYBODY BENEFITS.

OKAY.

AND THE CUSTOMER GETS BUSINESS CONTINUITY AT A LOWER COST.

ABSOLUTELY.

OKAY.

COOL.

COMMISSIONER REED.

I'M SO SORRY.

I'M TRYING TO USE MY ARCHIVE.

I NOTICED.

UM, SO I, MY CONCERNS, WHICH YOU PROBABLY CAN GUESS DON'T HAVE TO DO WITH THE BENEFITS OF DISTRIBUTED GENERATION, THEY HAVE TO DO WITH, UH, THE EMISSIONS AND USE OF GAS WHEN WE'RE TRYING TO MOVE AWAY FROM IT.

UM, AND YOU'VE SAID THERE ARE SOME LIMITS, ARE YOU GUYS, UM, GOING TO BE KEEPING TABS ON THE TYPE OF TECHNOLOGY AND EMISSIONS CONTROLS THAT THESE DISTRIBUTED GENERATION RESOURCES WOULD EMPLOY? IS THAT SOMETHING THAT YOU, YOU CAN, UM, ADVISE CLIENTS ON, LIKE ALL, ALL DISTRIBUTED GAS UNITS ARE NOT CREATED EQUAL, THERE'S SOME THAT ARE DIRTIER THAN OTHERS, ET CETERA.

IS THAT SOMETHING YOU GUYS HAVE ANY CONTROL OVER? YES, WE DO.

UM, YOU KNOW, PART OF THE REASON THAT WE'RE, YOU KNOW, WANTING TO MOVE SOONER THAN LATER IS BECAUSE WE SEE, UH, WE'RE TRYING TO NOT LET DIESEL COME IN ITS PLACE AND WE'VE, WE'VE, WE'VE, WE'VE SEEN THAT ALREADY HAPPEN IN OUR SERVICE TERRITORY.

SO WE, WE WANT TO PREVENT THAT FROM HAPPENING.

OKAY.

UM, AND, UM, YOU KNOW, OUR, UH, UH, QUALIFICATIONS, UH, LOOK AT, YOU KNOW, LOW EMITTING THERE'S THERE'S, UM, THERE'S SOME, THERE'S SOME REALLY GOOD TECHNOLOGY OUT THERE.

UM, ESPECIALLY, UM, WITH THE WORK THAT'S, THAT'S BEEN DONE THROUGHOUT THE STATE, UM, TO, TO BE ABLE TO, TO REQUEST OR REQUIRE A LOWER EMITTING TYPE GENERATION AT THE END OF THE DAY, IT IS CUSTOMER DRIVEN.

UM, BUT WE DO SEE THAT OUR CUSTOMERS, UH, ARE ENVIRONMENTALLY CONSCIENCE CONSCIOUS AND, UM, YOU KNOW, THEY ARE LOOKING FOR THOSE.

OKAY.

SO ALONG THOSE LINES, YOU MENTIONED AS ONE OF YOUR BULLET POINTS THAT THIS IS QUOTE UNQUOTE, A BRIDGE AND THAT THE FUTURE COULD BE SOLAR PLUS STORAGE.

DOES THAT, IS THAT SOMETHING THAT YOU CAN PROMOTE WITH CUSTOMERS, OR ARE YOU SAYING THAT AUSTIN ITSELF, AUSTIN ENERGY COULD PROVIDE THAT TECHNOLOGY AND PROVIDE A SERVICE? YOU SEE, WHAT I'M SAYING IS THAT I COMPLETELY SEE WHAT YOU'RE SAYING.

AND IF THAT IS A, AN AFFORDABLE SOLUTION, WE, THAT WE WOULD WANT IT, THAT THAT'S NOT SOMETHING THAT WE ARE PROHIBITED FROM OWNING.

SO IF THAT WAS A SOLUTION THAT COULD PROVIDE RESILIENCY FOR OUR CUSTOMERS, UM, FOR OUR, UM, PARTS OF OUR DISTRIBUTION SYSTEM, THEN WE WOULD, WE'RE, WE'RE WORKING WITH WEBER CURRENTLY, YOU KNOW, ON A STUDY TO BE ABLE TO SEE WHERE THAT COULD, YOU KNOW, WHERE BATTERIES ARE, IT COULD BE LOCATED ON OUR FEEDERS.

SO, SO THAT PREVENTS YOU FROM, FROM LOOKING AT BATTERIES, PLUS SOLAR AS A RESILIENCY, WHETHER IT'S FOR A PARTICULAR CUSTOMER OR FOR THE WHOLE.

OKAY.

AND WE HAVE STUDIES UNDERWAY CURRENTLY THAT ARE LOOKING AT THAT.

SO CAN YOU DESCRIBE HOW BAD THE DIESEL GENERATORS ARE WHEN, WHEN PEOPLE INSTALLED BEHIND THE METER BACKUP DIESEL GENERATORS, DO THEY HAVE ANY KIND OF EMISSION CONTROLS? DO THEY HAVE, UM, LIKE SOPHISTICATED AUTOMOBILES, HAVE THEY HAVE, UH, DIESEL PARTICULATE FILTERS AND THEY HAVE SCRS AND THEY HAVE QUITE A, THEY CALL IT SOMETIMES MY FRIENDS IN THE AUTOMOTIVE INDUSTRY, A CHEMICAL FACTORY, AND THE EXHAUST STREAM TO THAT.

DO ANY OF THOSE DIESEL GENERATORS HAVE ANY OF THAT OR IS IT BASICALLY DIESEL, WHICH COULD BE WORSE THAN COAL? SO I DON'T HAVE, UH, DETAILS, UM, ON ANY KIND OF CURRENT LANE, RECENT INSTALLATIONS.

AND I MENTIONED THAT JUST IN THIS, UH, NOT BECAUSE IT'S SOMETHING THAT IS RAMPANT IN OUR SERVICE TERRITORY.

I'M NOT TRYING TO SAY THAT AT ALL.

UH, WHAT I'M SAYING IS, IS THAT OUR CUSTOMERS HAVE A NEED, AND WE HAVE SEEN WHERE THEY'VE STEPPED IN FRONT OF US AND CHOSEN DIESEL BECAUSE THIS WASN'T HAPPENING FAST ENOUGH.

AND SO, UM, I'M NOT, I'M NOT TRYING TO PRETEND THAT, UH, PROPORT THAT THERE THERE'S BEEN A LOT OF INSTALLATIONS OR ANYTHING LIKE THAT.

AND I DON'T HAVE THAT DATA FOR YOU.

I'M SURE I'LL, I'LL GO BACK AND SEE IF THERE'S ANYTHING THAT I CAN FIND FOR YOU, UH, COMMISSIONER TUTTLE.

BUT, UM, I THINK THE IMPORTANT REASON FOR BRINGING THAT UP IS BECAUSE WE'VE HAD HAD, YOU KNOW,

[01:00:01]

WE'VE SEEN ONE OR TWO EXAMPLES AND WE JUST, WE, WE WANT TO LET OUR CUSTOMERS KNOW THAT THEY DON'T HAVE TO DO THAT, THAT THEY CAN, UH, WORK WITH US.

AND, UM, WE CAN GIVE THEM THE REAL, THE RESILIENCY THAT THEY, THAT THEY NEED, AND THEY WANT, UM, YOU KNOW, AND DOING IT A MUCH MORE ENVIRONMENTALLY FRIENDLY WAY.

ERICA, THIS IS CARRIE, YOU KNOW, I AGREE, I SURE WOULD LIKE TO SEE YOU GET THIS OUT THERE, PRONTO AND HEAD THEM OFF AT THE PAST.

UM, BUT IN TRYING TO QUANTIFY WHAT WE'RE TALKING ABOUT HERE, IF 5% OF SUMMER PEAK IS, UM, IS THE MAX THAT YOU HAVE TO GO, I DON'T EVEN REALLY KNOW WHAT THAT NUMBER IS.

CAN YOU TELL ME, UM, 5% OF SUMMER PEAK? THAT'S 150, 150.

OKAY.

SO WELL BELOW THE, THE ALTERNATIVE CAP UNDER THE STATUTE, IF IT'S 300, CAN YOU SAY YOUR QUESTION ONE MORE TIME? THE CA JUST TO BE CLEAR, THE CAP IS A, BUT WE CAN GO ABOVE THAT.

THE CAP IS JUST IF A MUNICIPALITY OR ELECTRIC CO-OP DOESN'T WANT MORE THAN THAT.

THEY CAN SAY NO.

RIGHT.

IT DOESN'T MEAN YOU CAN'T GO FURTHER.

YEAH, I'M SORRY THAT, THAT'S WHAT I MEANT, BUT YOU'RE NOT REQUIRED TO GO TO ANY, BECAUSE IT'S 5% OF SUMMER PEAK.

YOU DON'T HAVE TO GO TO MORE THAN 150, YOU DON'T HAVE TO GET TO THE 300.

RIGHT.

SO, YOU KNOW, IT BRITAIN 50, I MEAN THAT, I, YOU KNOW, WE, WE'RE NOT, WE'RE NOT THRILLED ABOUT ADDING MORE GAS RESOURCES IN GENERAL, BUT UNDER THE CIRCUMSTANCES, SINCE THIS IS GONNA MOVE FORWARD BY LEGISLATIVE MANDATE, 150 IS, YOU KNOW, IT'S DOABLE.

RIGHT.

AND AGAIN, YOU KNOW, THE, THE TWO 50 THAT WE ARE OUTLINING IS REALLY BASED ON CUSTOMERS, UH, DESIRE CUSTOMER NEEDS.

SO WE'RE, WE'RE TO, UM, YOU KNOW, JUST MEET THE NEEDS OF OUR, THAT, THAT HAVE BEEN EXPRESSED TO US.

UM, AND, YOU KNOW, IF IT GOES BEYOND THAT, THEN THAT WOULD BE SOMETHING THAT WE WOULD BE COMMUNICATING.

BUT RIGHT NOW WE, WE'RE NOT SURE IF WE'LL GET TO THE TWO 50, I'M GOING TO BE HONEST WITH YOU, YOU KNOW, WE'LL, WE'LL, WE'LL SEE.

UM, IT, IT JUST, IT JUST, AGAIN, YEAH, IT JUST DEPENDS ON THE, ON THE NEED.

AND IF, IF THEY'RE, YOU KNOW, INTERESTED IN THAT THEY STILL HAVE TO SPEND A CERTAIN AMOUNT OF MONEY AND, YOU KNOW, IF THEY, IF THEY, AND THEN ON TOP OF THAT, IF I REMEMBER CORRECTLY, OR IF I UNDERSTOOD IT CORRECTLY, THE WAY IT WAS DESCRIBED, THAT'S JUST FOR, THAT'S JUST A, A, UH, A PEAK ENERGY, UH, ISSUE.

IF IT'S ONLY RUNNING 10% OF THE TIME, IT ENDS UP BEING A RELATIVELY LIMITED IMPACT ON, ON OUR OVERALL EMISSIONS.

ABSOLUTELY.

I WANT TO THANK YOU.

IT WAS A VERY INTERESTING DISCUSSION.

I DIDN'T, I, MY PLEASURE MEMORY OF IT WHEN IT WAS PASSED, AND I THINK IT SOUNDS LIKE A GREAT PROGRAM.

THANK YOU.

IT'S MY PLEASURE.

Y'ALL HAVE A GOOD EVENING OR ANY OTHER QUESTIONS, I THINK THAT'S IT.

ALL RIGHT, EVERYBODY.

GOOD? ALL RIGHT.

THANK YOU.

THANKS VERY MUCH.

GOOD NIGHT.

[17. Discussion and possible action on a recommendation from the Budget and Audit Workgroup regarding briefings to the EUC by certain rate review participants.]

ALL RIGHT.

MOVING ON TO ITEM NUMBER 17 DISCUSSION AND POSSIBLE ACTION ITEMS WE HAVE ON THE AGENDA, DISCUSSION AND POSSIBLE ACTION ON RECOMMENDATION FROM THE BUDGET AND AUDIT WORK GROUP REGARDING BRIEFINGS TO THE EUC BY CERTAIN RATE REVIEW PARTICIPANTS.

UM, AND I THINK COMMISSIONER CHAPMAN, UH, PROVIDED A, UM, HANDOUT FOR US TO REVIEW HERE.

AND WOULD YOU LIKE TO JUST, UH, INTRODUCE THE IDEAS? UH, I ACTUALLY, I'M NOT THE AUTHOR OF THIS.

UH, I WOULD, UH, DEFER TO, UH, COMMISSIONER RAID TO, UH, UH, GO THROUGH, BUT I WOULD SAY IT AS YOU NAN, IT W THE WORK GROUP MET, AND IT'S A CONSENSUS DOCUMENT.

YEAH.

THIS, UM, CHAIRMAN CHAIRWOMAN, HOWEVER YOU WANT TO BE.

UM, UH, WE HAD DISCUSSED IN OUR, UM, PREVIOUS MEETING THAT WE ARE GOING TO HAVE THE OPPORTUNITY AS THE EUC TO HAVE TWO MEETINGS WHERE WE DISCUSS THE PROPOSED RATES.

UM, AND SO THAT'S AN ADVANTAGE, RIGHT? THAT WE ARE ABLE BOTH IN SEPTEMBER TO DISCUSS AND POTENTIALLY TO TAKE ACTION IN OCTOBER.

SO THE THOUGHT WE HAD WAS, UM,

[01:05:02]

AND I THINK THIS IS SOMETHING SIMILAR TO WHAT WE DID IN 2016.

SO CARRIE, IF I GOT IT WRONG, LET ME KNOW.

UM, WHICH IS, WE ALLOWED ALL OF THE PARTICIPANTS THAT WERE FORMAL, THAT WERE PART OF THE FORMAL RATE PROCEEDING TO MAKE A PRESENTATION TO THE EUC IF THEY WANT, THEY MAY NOT WANT TO.

AND SO ALL THIS DOES IS LIST ALL THE FOLKS.

UM, AND THIS IS AWKWARD BECAUSE IT INCLUDES SIERRA CLUB, ALL THE FOLKS THAT WERE ACTUALLY PART OF THE HEARING LAST WEEK THAT ACTUALLY PARTICIPATED.

CAUSE THERE WERE SOME PEOPLE WHO SAID THEY WANTED TO BE PART OF THE HEARING, BUT THAT DIDN'T ACTUALLY SHOW UP.

UM, SO THIS I BELIEVE IS ALL THE PARTICIPANTS AND WE CAN CHECK TO MAKE SURE THAT'S TRUE.

UM, LET THEM IN SEPTEMBER MAKE A PRESENTATION OF THEIR FINAL KIND OF RECOMMENDATIONS OR FINAL BRIEFINGS, UM, AND ALSO GIVE AUSTIN ENERGY AND THE ICA THAT OPPORTUNITY.

UM, AND THAT WILL ALLOW US TO JUST, YOU KNOW, HEAR FROM ALL OF THEM AND THEN DISCUSS WHAT THEY SAID, BUT ALSO DISCUSS THE ACTUAL JUDGE'S RECOMMENDATION, WHICH COMES OUT SEPTEMBER 7TH.

HE HAS TO GIVE HIS RECOMMENDATION.

UM, AND THEN, UH, OUR LITTLE WORK GROUP COULD HAVE SOME FOLLOW-UP MEETINGS AS NEEDED AND THEN ACTUALLY DISCUSS A RECOMMENDATION IN OCTOBER.

SO THAT'S THE IDEA.

UM, AND THE 8, 10, 10 MINUTES IS A RANDOM NUMBER OF MINUTES.

WE COULD MAKE IT SHORTER OR LONGER.

I WOULDN'T WANT TO MAKE IT LONGER.

I THINK, UM, I'M NOT SURE EVERYONE NEEDS EIGHT TO 10 MINUTES, PUT IT THAT WAY, BUT WE COULD GIVE PEOPLE THAT OPPORTUNITY IF THEY WANTED TO NOW DOES AN XP AND TECH AND DATA FOUNDRY WANT TO MAKE THESE PRESENTATIONS, I DON'T KNOW, BUT WE COULD AT LEAST REACH OUT AND, UH, ALLOW ALL OF THOSE PARTIES THAT WANTS TO MAKE A PRESENTATION ORALLY OR IN WRITTEN FORM TO DO SO.

SO THAT'S THE IDEA, CYRUS IT'S KERRY.

I, I MAY BE WRONG.

I DON'T REALLY REMEMBER IN 2016 THAT WE INVITED, OH, COMMERCE.

I DO REMEMBER SPECIFICALLY GETTING A PRESENTATION FROM THE HEARINGS EXAMINER.

UM, UH, BUT I, I DON'T REMEMBER THAT WE MADE IT AN OPEN INVITATION.

DON'T DON'T KNOW HOW THAT, YOU KNOW, I DON'T KNOW WHETHER THAT MATTERS.

I MEAN, FROM MY POINT OF VIEW, I PREFER TO JUST READ WHAT, WHAT OCCURRED IN THE HEARING AND THE BRIEFS.

BUT, UM, YOU KNOW, IT, MY, MY VIEW IS YOU PROBABLY WANT SHORTER TIME PERIODS, LIKE FIVE MINUTES FROM EACH TO QUICKLY SUMMARIZE THEIR, THEIR POSITION, BUT IT'S, YOU KNOW, IT'S AT THE WILL OF THE GROUP.

ANY OTHER DISCUSSION, COMMISSIONER BOWEN, ANY THOUGHTS I'M INTRIGUED BY CARRIE'S QUESTION.

DO WE KNOW FROM A MATTER OF PRACTICE, IF THIS HAS BEEN DONE BEFORE? WELL, I CAN SAY THAT WE'VE ONLY HAD THIS PROCEDURE IN PLACE.

OKAY.

WELL THEN YEAH, THERE YOU GO.

SO IT'S EITHER IT HAPPENED IN 2016 OR, YEAH, I GUESS WE COULD LOOK BACK AT THE RECORD AND SEE, WE ACTUALLY DID A, YEAH, WE COULD DO THAT AND I'M NOT SURE THAT IT SHOULD, AND I DON'T KNOW ANY REASON WHY IT SHOULD NECESSARILY BE BINDING.

IT'S JUST GET THESE FORMAL PRESENTATIONS AT THE HEARING THAT ARE QUITE COMPLETE AND YOU HAVE TRANSCRIPT AND YOU HAVE A BRIEFING AND ALL OF THAT, WHICH TO ME IS A BETTER WAY OF UNDERSTANDING THEIR POSITIONS.

BUT, YOU KNOW, I, I ALSO DON'T HAVE