* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:01] TIME. IT'S 12, 12 15. [CALL TO ORDER] WE'RE IN THE BOARDS AND COMMISSIONS ROOM AND OUR [1. Approve the minutes of the August 30, 2022 meeting of the Austin Energy Utility Oversight Committee.] FIRST ORDER OF BUSINESS IS TO APPROVE THE MINUTES FROM THE AUGUST 30TH, 2022 MEETING. UH, MAYOR ADLER MOVES APPROVAL SECOND BY MAYOR PROTE. ALL IN FAVOR SIGNAL BY SAYING I. THAT IS UNANIMOUS. ON THE DIAS, WE HAVE COUNCIL MEMBERS, HARPER MADISON POOL RENTER VILLA. ONE OTHER PERSON. KITCHEN. OFF THE DIAS. HEY, UM, WELCOME CITY GENERAL MANAGER. YOU'RE UP NEXT FOR YOUR REPORT, PLEASE. OH, YES. THANK YOU. SORRY, MR. ROBBINS. WE HAVE ONE, [Public Communication: General] ONE MEMBER OF THE PUBLIC, UH, SOMEONE . OKAY, VERY GOOD. WELL, WE'LL START WITH YOU. HAVE YOU HAVE THREE MINUTES? WELCOME TEST. UH, NOT THAT PRESENTATION, THE ONE THAT YOU JUST FLOATED. OKAY. COUNCIL, I'VE BEEN WORKING ON ENERGY RELATED ISSUES SINCE 1977. I AM AGAIN PROTESTING THE UNACCOUNTABLE WAY THAT AUSTIN ENERGY IS HIDING INFORMATION RELEVANT TO THE INCREASE IN FUEL CHARGES. I HAVE BEEN TRYING TO FIND OUT WHAT THESE FUEL INCREASES WERE FOUR MONTHS AND AUSTIN ENERGY HAS HIDDEN INFORMATION THAT WAS FORMERLY PUBLIC. UH, NOW LET ME SHOW YOU AN EXAMPLE OF WHAT I MEAN. UH, I HAVE EMAILED THIS TO YOU, BUT FOR THE PUBLIC WATCHING THIS MEETING, THIS IS FROM MEMOS SENT BY THE UTILITIES FORMER CHIEF OPERATING OFFICER IN 2012. IT DETAILS THE COST OF EACH FUEL AS WELL AS THE PERCENTAGE THAT EACH FUEL MADE UP OF THE TOTAL POWER SUPPLY ADJUSTMENT. AND THIS IS ANOTHER PART OF THE INFORMATION. UH, THERE WAS OBVIOUSLY NOTHING COMPETITIVE ABOUT THIS, SO WHY CAN'T I SEE IT TODAY? HOW CAN I OR ANY MEMBER OF THE PUBLIC TRUST WHAT THE UTILITY SAYS IF WE CANNOT EVEN SEE SUCH BASIC INFORMATION? I HAVE STATED BEFORE THAT AUSTIN ENERGY WILL NOT EVEN DIVULGE INFORMATION THAT IS POSTED ON A FEDERAL AGENCY'S WEBSITE. UH, WHEN I ACCESSED THIS WEBSITE INFORMATION, I DID INDEED FIND DOCUMENTATION OF INCREASES IN AUSTIN'S NATURAL GAS COSTS. BUT I COULD NOT RECONCILE THESE INCREASES WITH A PRY AND INSUFFICIENT INFORMATION THE UTILITY HAS PROVIDED TO JUSTIFY THE INCREASE THEY ASKED FOR. THE UTILITIES NUMBERS MAY BE ENTIRELY JUSTIFIABLE, BUT HOW CAN YOU REINSURE? HOW CAN YOU REASSURE AN INFLATION WEARY PUBLIC WITHOUT BASIC INFORMATION IS PROOF? UH, ON A SEPARATE POINT, I OFFER A SUGGESTION ON HOW YOU CAN LOWER FUEL COST. IT SEEMS OUT OF PLACE, BUT THE 10 DEBT FOR THE BIOMASS PLANT IS EMBEDDED IN THE FUEL COSTS. IF YOU EXTEND THE DEBT FROM 10 YEARS TO 15 YEARS, IT WILL PROBABLY SAVE ABOUT 12 MILLION A YEAR. AND THIS DOUBLES IF YOU, UH, LOOK AT TIMES COVERAGE. I RECOMMENDED THIS DURING THE RATE CASE, BUT AUSTIN ENERGY HAS BY ITS PATTERN, IGNORED IT. UH, THIS IS NOT THE LION'S SHARE OF THE FUEL COST INCREASE, BUT IT WILL HELP. IN CLOSING, I URGE YOU TO DELAY THE PSA UNTIL YOU CAN TAKE UP THE RIGHT CASE AND I URGE YOU TO REFER THIS FUEL CHARGE TO THE ELECTRIC UTILITY COMMISSION FOR REVIEW AT THEIR NEXT MEETING. ALSO, UH, MY FRIEND AND COLLEAGUE CYRUS REED OFFERED HIS SUGGESTION THAT YOU ONLY CREATE A TEMPORARY PSA INCREASE FOR THREE MONTHS. THANK YOU, MR. ROBINS. APPRECIATE YOUR TIME. THANK YOU. THANK YOU FOR BEING HERE. UH, WE HAVE ONE MORE SPEAKER TODAY AND THAT IS STEPHANIE. STEPHANIE CORTE. WELCOME. GOOD AFTERNOON. THANK YOU [00:05:01] SO MUCH. UM, MY NAME IS STEPHANIE CORTE. I'M WITH TEXAS CLIMATE JOBS ACTION. I REPRESENT A PRO WORKER, PRO-UNION ORGANIZATION, UM, THAT IS SUPPORTING THE LABOR MOVEMENT OF TEXAS, BUT ALSO WORKING FAMILIES, WHETHER OR NOT THEY ARE A PART OF A UNION. WE HAD ABOUT 70 PEOPLE GATHER AT AUSTIN ENERGY'S HEADQUARTERS ON SEPTEMBER 24TH TO SAY NO TO ANY RATE INCREASES. AND SO I'M HERE TO SAY THAT ALTHOUGH MANY PEOPLE HAVE TOLD ME THAT IT'S UNAVOIDABLE TO HAVE THIS PASS THROUGH RATE GO THROUGH TO HAVE THIS INCREASE HAPPEN THAT WE COULD MAYBE SOFTEN THE BLOW BY SPREADING IT OUT A LITTLE BIT. I'M HERE TO SAY THAT I DISAGREE WITH THAT AND THAT WORKING PEOPLE IN THIS CITY WHO CANNOT BE HERE TODAY BECAUSE THEY ARE OUT AT THEIR JOBS, AREN'T ABLE TO SPEAK FOR THEMSELVES. AND SO WE AT TEXAS CLIMATE JOBS AND THE VARIOUS UNIONS WE REPRESENT IN COMMUNITY GROUPS THAT WE REPRESENT, SAY NO TO THESE INCREASES, SAY NO TO THE PASS THROUGH RATE, NO TO THE BASE RATE INCREASE. WE VERY WELL KNOW HERE THAT THIS IS A VERY EXPENSIVE CITY. AND SO ANYTHING, ANYTHING, EVEN $15 A MONTH, $20 A MONTH, IT'S GONNA BE A LOT FOR WORKING PEOPLE. THERE HAS TO BE ANOTHER WAY TO BE ABLE TO AVOID THIS. THERE HAS TO BE AN OPTION THREE. UH, WE DO NOT SUPPORT THE RATE INCREASE. WE SUPPORT, UH, PEOPLE'S UTILITY PLATFORM THAT WORKS FOR ALL PEOPLE OF THIS CITY. AUSTIN ENERGY BELONGS TO THE PEOPLE. WE ARE SO UNIQUE AND IN THAT WAY THAT WE CAN SAY, YOU KNOW, PEOPLE HAVE, SHOULD BE ABLE TO HAVE A SAY IN THEIR UTILITY, SHOULD BE ABLE TO HAVE A SAY IN THEIR RATES THAT THEY PAY TO LIVE HERE. AND SO THAT IS ALL I'VE COME TO SAY TODAY IS I JUST WANTED TO MAKE SURE THAT SOMEONE FROM THE COMMUNITY, SOMEONE FROM WORKING PEOPLE WERE HERE TO SAY THAT THEY DO NOT SUPPORT THIS AND THERE MUST BE ANOTHER WAY. THANK YOU CHAIR. I HAVE A QUICK QUESTION. THANK YOU. THANK YOU FOR YOUR COMMENTS. CAN YOU, UH, SHARE A LITTLE BIT, CAUSE I KNOW THERE IS A SENTIMENT OF JUST PASSING, UM, OPTION TWO THAT WAS PRESENTED TO COUNCIL OR THIS MORNING THAT WOULD STILL BE ANYWHERE BETWEEN, UH, A $15 INCREASE JUST ON THE, ON THE PSA RATE. UM, NOT COUNTING THE REGULATORY CHARGE THAT'S ALSO GETS INCLUDED. UM, BUT WHAT KIND OF IMPACT DOES THAT HAVE ON ON YOUR MEMBERS, ON OUR WORKERS? LIKE WHAT DOES THAT MEAN WHEN YOU HAVE AN ADDITIONAL $15 PER MONTH THAT YOU HAVE TO PAY? I WOULD SAY, YOU KNOW, FIRST OF ALL, IT WOULDN'T AUTOMATICALLY MEAN THAT PEOPLE HAVE TO START MAKING TOUGH CHOICES. THEY'RE CURRENTLY ALREADY MAKING TOUGH CHOICES. THEY'RE ALREADY CUTTING CORNERS WHEN IT COMES TO WHAT DO I FEED MY FAMILY? WHAT CAN I BUY FOR MY KIDS THIS YEAR? UM, YOU KNOW, CAN I MAKE RENT HAPPEN? SHOULD I MOVE IN WITH ANOTHER FAMILY IN LIKE A SINGLE FAMILY HOME WHERE THEY ARE ALREADY HAVING PEOPLE MOVE IN WITH MULTIPLE FAMILIES? SO ADD IT ON TOP OF THAT EXTREME AMOUNT OF PRESSURE AND STRESS OF MAYBE EVEN TAKING ON ANOTHER JOB. YOU ADD THIS AND HONESTLY, IT'S JUST HEARTBREAKING. IT CAN REALLY CRUSH SOMEONE'S SOUL AND, UH, HOPE, UH, REALLY OF JUST BEING LIKE, I DON'T KNOW IF I CAN CONTINUE DOING THIS. AND FIRST, A LOT OF PEOPLE IT MIGHT SEEM LIKE, YOU KNOW, 15, $20, BUT WHEN YOU ADD THAT ON TOP OF EVERYTHING THAT PEOPLE HAVE SUFFERED THROUGH TWO YEARS, IT BECOMES VERY, VERY DISHEARTENING TO KNOW THAT YOU JUST DON'T HAVE THE KIND OF LIFESTYLE YOU THOUGHT THAT YOU COULD PROVIDE FOR YOUR FAMILY BY SIMPLY, YOU KNOW, WORKING A FULL TIME JOB THAT'S JUST NOT POSSIBLE ANYMORE. AND SO AN INCREASE LIKE THIS WOULD BE EXTREMELY DIFFICULT FOR A LOT OF FAMILIES. THANK YOU. THANK YOU FOR HIGH HIGHLIGHTING THE, THE REAL LIFE IMPACT THAT THIS WOULD HAVE. THANK YOU. THANK YOU VERY MUCH FOR BEING HERE WITH US. DO WE HAVE ANYONE ELSE HERE TODAY SCHEDULE TO SPEAK OR WHO WOULD LIKE TO SPEAK TO US ON PUBLIC COMMUNICATIONS? OKAY, THANK YOU. UM, SO WE'LL GO [2. General Manager's Report -Upcoming Recommendations for Council Action -Innovations, events, awards.] TO OUR GENERAL MANAGER, GENERAL MANAGER SERGEANT, THANKS FOR BEING WITH US. GOOD AFTERNOON, VICE CHAIR AND COMMITTEE MEMBERS. I'M JACKIE SERGEANT, US AND ENERGY GENERAL MANAGER, AND TODAY WE ONLY HAVE ONE REPORT, UM, THE GENERAL MANAGER'S REPORT. AND SO IF YOU WOULD GO TO THE NEXT SLIDE, PLEASE. UM, TODAY I'M GONNA BEGIN WITH EIGHT UPCOMING REQUESTS FOR COUNCIL ACTION. THE FIRST ITEM IS TO APPROVE, UH, ISSUANCE OF A FIVE YEAR PRODUCTION BASED INCENTIVE OR PBI TO PALOMA RIDGE OWNER LLC FOR THE INSTALLATION OF SOLAR ELECTRIC SYSTEMS ON THEIR FACILITY IN AN AMOUNT NOT TO EXCEED 2 MILLION. THE PURPOSE OF THE PBI PROGRAM IS TO EXPAND ADOPTION OF CUSTOMER SIDED SOLAR ON COMMERCIAL BY COMMERCIAL CUSTOMERS. IT PROVIDES A, UH, PAYMENTS AS A MONTHLY BILLING ADJUSTMENT BASED ON THE METERED SOLAR PRODUCTION FOR THE FIRST FIVE YEARS OF OPERATION. THE NEXT ITEM IS TO AUTHORIZE NEGOTIATION AND EXECUTION OF A FIVE YEAR CONTRACT WITH TEXAS AIR SYSTEMS LLC FOR MODULAR HEAT EXCHANGER SKIDS FOR AN AMOUNT NOT [00:10:01] TO EXCEED 25 MILLION. THIS EQUIPMENT IS USED BY AUSTIN ENERGY CHILLED WATER CUSTOMERS. THE NEXT ITEM IS TO INCREASE AN EXISTING CONTRACT WITH MOTOROLA SOLUTIONS INC BY TWO AND A HALF MILLION DOLLARS AND TO EXTEND IT UP TO FIVE YEARS FOR CUSTOMER SERVICE REQUEST SYSTEM OR THE CSR THAT'S USED BY AUSTIN THREE 11. THIS AMENDMENT PROVIDES CONTINUITY OF SERVICE WHILE THE CITY ASSESSES FUTURE REQUIREMENTS AND EXPANSION OF THE CSR SYSTEM. NEXT SLIDE PLEASE. THE NEXT ITEM IS TO AUTHORIZE NEGOTIATION AND EXECUTION OF TWO CONTRACTS WITH TH ENGINEERING INC. AND TEI CONSTRUCTION SERVICES, INC. FOR POWER PRODUCTION MAINTENANCE, EACH FOR A TERM OF FIVE YEARS IN AN AMOUNT NOT TO EXCEED $20 MILLION DIVIDED BETWEEN THE CONTRACTORS. THESE CONTRACTS PROVIDE SPECIALIZED MAINTENANCE AND REPAIR SERVICES FOR SANDHILL ENERGY CENTER, THE DECKER CREEK POWER STATION GAS TURBINES, AND THE DISTRICT ENERGY COOLING LOCATIONS. THE NEXT ITEM IS TO AUTHORIZE NEGOTIATION AND EXECUTION OF A SIX YEAR CONTRACT, NOT TO EXCEED 2.5 MILLION WITH TRAINED US INC. OR ONE OF THE OTHER QUALIFIED OFFERS TO PROVIDE SPECIALIZED MAINTENANCE AND REPAIR SERVICES FOR THE INLET AIR CHILLERS LOCATED AT, LOCATED AT THE SANDHILL ENERGY CENTER. THESE CHILLERS COOL THE INLET AIR DURING THE VERY HOT SUMMER DAYS, WHICH ALLOWS THE GENERATORS TO REACH FULL CAPACITY. THE NEXT ITEM IS TO AUTHORIZE AWARD OF A FIVE YEAR CONTRACT WITH KBS ELECTRICAL DISTRIBUTORS INC. AND AN AMOUNT NOT TO EXCEED 1.65 MILLION TO PROVIDE RELAYS FOR SWITCH GEAR AND RELAY PANELS. THESE PROTECTIVE RELAYS ARE INSTALLED, UM, ON CONTROL PANELS AND SWITCH GEAR TO PROTECT HIGH VOLTAGE TRANSMISSION LINES, SUBSTATION EQUIPMENT AND AUSTIN ENERGY'S DISTRIBUTION. UH, SYSTEM. NEXT SLIDE PLEASE. THE NEXT ITEM IS TO AUTHORIZE AWARD OF A FIVE YEAR CONTRACT WITH KBS ELECTRICAL DISTRIBUTORS INC. AND PRIEST MAIL AND NICHOLSON, INC. NOT TO EXCEED 6 MILLION. THE CONTRACTS WILL PROVIDE CIRCUIT SWITCHERS ON AN AS NEEDED BASIS TO SUPPORT AUSTIN ENERGY OPERATIONS, CIRCUIT SWITCHERS PROTECT HIGH VOLTAGE TRANSMISSION LINES, SUBSTATION EQUIPMENT, AND THE DISTRIBUTION SYSTEM. THE FINAL ITEM IS TO INCREASE AN EXISTING CONTRACT WITH ORACLE AMERICA INC. FOR 1.9 MILLION AND TO EXTEND THE TERM BY 20 MONTHS FOR REVISED TOTAL CONTRACT NOT TO EXCEED 3.4 MILLION FOR CONTINUED TECHNICAL CLOUD ANALYTICALS SERVICES. THE PROPOSED AMENDMENT IS FOR THE CONTINUATION OF ORACLE'S ANALYTIC INSIGHT TOOL THAT IS USED TO PROTECT AGAINST METER TAMPERING, IDENTIFY METER MALFUNCTIONS, MONITOR METER PERFORMANCE, AND IDENTIFY AND PRIORITIZE BILLING EXCEPTIONS. NEXT SLIDE. NOW I'M PLEASED TO ANNOUNCE THAT LAST WEEK AUSTIN ENERGY CELEBRATED PUBLIC POWER WEEK, ALONG WITH MORE THAN 2000 OTHER NOTFOR PROFIT ELECTRIC UTILITIES THAT COLLECTIVELY PROVIDE ELECTRICITY TO OVER 49 MILLION AMERICANS. WE KICKED OFF THE WEEK LONG CELEBRATION WITH THE OPENING OF THE AUSTIN COMMUNITY CONNECTIONS ROOM WITH SPOTLIGHT, WHICH SPOTLIGHT AUSTIN ENERGY AND THOSE WE SERVE. AND I HOPE THAT THE NEXT TIME YOU VISIT OUR AUSTIN ENERGY HEADQUARTERS THAT YOU'LL TAKE TIME TO VISIT THE, UM, THIS SETUP. NEXT SLIDE PLEASE. NOW WE'D LIKE TO SHARE A SHORT VIDEO ABOUT HOW AUSTIN ENERGY IS P PROUD TO POWER AUSTIN. HERE AT AUSTIN ENERGY, WE'RE MORE THAN JUST THE POWER COMPANY. AS YOUR COMMUNITY OWNED ELECTRIC UTILITY, WE'RE YOUR FRIENDS AND NEIGHBORS AND WE'RE ON A MISSION TO DELIVER CLEAN, AFFORDABLE, RELIABLE ENERGY AND EXCELLENT CUSTOMER SERVICE. 24 HOURS A DAY, 365 DAYS A YEAR. SO HOW EXACTLY DO WE GET POWER TO YOU? OUR SERVICE TERRITORY EXTENDS OVER 437 SQUARE MILES AND INCLUDES AUSTIN AS WELL AS PORTIONS OF TRAVIS AND WILLIAMSON COUNTIES. WE MAINTAIN MORE THAN 12,000 MILES OF DISTRIBUTION AND TRANSMISSION POWER LINES. THAT'S ENOUGH TO STRETCH HALFWAY AROUND THE WORLD. SO WHAT MAY COME IS NO SURPRISE. WE ALSO MAINTAIN CLOSE TO 160,000 UTILITY POLES. WE GENERATE POWER USING A DIVERSE MIX OF FUEL, RESOURCES, NATURAL GAS, COAL, NUCLEAR, BIOMASS, WIND, AND SOLAR. WE'RE CONTINUALLY INVESTING IN A SAFER, SMARTER GRID TO BETTER SERVE ONE OF THE FASTEST GROWING CITIES IN THE COUNTRY. WE'RE ALSO COMMITTED TO KEEPING PACE WITH THE COMMUNITY WE SERVE. WHEN WE SAY WE'RE COMMUNITY OWNED, THAT MEANS WE FOCUS ON OUR COMMUNITY'S NEEDS, WE'RE OVERSEEN BY LOCAL GOVERNMENT, PROVIDE LOCAL JOBS, OPERATE LOCALLY, AND RETURN REVENUES BACK TO OUR COMMUNITY BY HELPING FUND PUBLIC SAFETY PARKS, LIBRARIES AND MORE. WE'RE HELPING KEEP AUSTIN. WELL, AUSTIN, BEING A PUBLIC POWER ALSO MEANS WE'RE ABLE TO OFFER A NUMBER OF DIFFERENT ENERGY EFFICIENCY, REBATES AND INCENTIVE PROGRAMS TO AREA RESIDENTS, BUSINESSES AND SCHOOLS. [00:15:01] THAT'S THE KIND OF SERVICE WE'VE BEEN PROVIDING FOR MORE THAN 125 YEARS. WE'RE PROUD TO POWER OUR GROWING COMMUNITY, GET TO KNOW US A LITTLE BETTER@AUSTINENERGY.COM. THANK YOU. AND THEN I'M READY FOR THE NEXT SLIDE. AS I WRAP UP, I WOULD LIKE TO RECOGNIZE THE AUSTIN ENERGY EMPLOYEES WHO WENT TO FLORIDA TO ASSIST JACKSONVILLE AND BARTEL WITH REPAIR AND RESTORATION. DO THE DAMAGED CAUSE BY HURRICANE IAN. LISTED ON THE SLIDE ARE THE 17 CITY OF AUSTIN EMPLOYEES WHO MADE THE TRIP. AUSTIN ENERGY RECEIVED THE REQUEST FOR MUTUAL AID FROM THE AMERICAN PUBLIC POWER ASSOCIATION, AND WE HAVE PREVIOUSLY ASSISTED JACKSONVILLE ELECTRIC AUTHORITY WITH HURRICANE. HURRICANE RECOVERY CREWS LEFT AUSTIN ON SEPTEMBER 28TH WITH SIX BUCKET TRUCKS, THREE DIGGING DERRICKS AND 12 SUPPORT VEHICLES TO HELP RESTORE POWER TO AFFECTED COMMUNITIES. AUSTIN ENERGY CREWS MADE IT SAFELY BACK HOME OVER THE WEEKEND, AND I'D LIKE TO TAKE THIS OPPORTUNITY TO AGAIN, CONVEY MY SINCERE APPRECIATION TO ALL OF THEM AND THEIR FAMILIES WHO MADE THIS POSSIBLE. AND WITH THAT, IT CONCLUDES MY PRESENTATION. I'M HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE. THANK YOU VERY MUCH. AND THANK YOU TO ALL OF THOSE STAFF MEMBERS. IT DOES TAKE BOTH, UM, THEIR OWN DEDICATION, BUT ALSO THE SUPPORT OF THEIR FAMILY TO DO THAT. AND SO THANK YOU. I'M SURE, I'M SURE THEIR ASSISTANCE WAS VERY MUCH APPRECIATED. COLLEAGUES, QUESTIONS FOR OUR GENERAL MANAGER? ALL RIGHT, WELL, I THINK THAT IS OUR LAST ITEM OF BUSINESS. WE DID DISCUSS THE [3. Discuss schedule for upcoming work sessions and public hearings on Power Supply Adjustment and Base Rate Review.] SCHEDULE FOR UPCOMING WORK SESSIONS IN PUBLIC HEARINGS EARLIER THIS MORNING, AND I THINK THERE'S MORE CONVERSATION TO HAPPEN THERE, BUT I DON'T THINK THAT HAPPENS RIGHT NOW. UM, ARE THERE ANY SUGGESTIONS OF THINGS TO DISCUSS AT FUTURE MEETINGS? GREAT CASE. I DON'T, I THINK WE PROBABLY DON'T HAVE MUCH MORE THAN THAT, MUCH MORE CAPACITY TO DO THAN THAT. ALL RIGHT, WELL WE STAND ADJOURNED THEN AT 2 32. THANK YOU TO ALL OF OUR STAFF. ALL RIGHT, SO LET'S KEEP GOING HERE. IT'S 2 34. UH, STILL. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.