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ARE YOU READY?

[00:00:01]

ALL RIGHT.

[CALL MEETING TO ORDER]

UH, TIME IS SIX OH SEVEN.

WE'RE GONNA CALL THIS MEETING OF THE RESOURCE MANAGEMENT COMMISSION ON TUESDAY, OCTOBER 18TH.

TO ORDER, UH, FIRST UP, LET'S TAKE A ROLL CALL.

UH, WHEN I CALL YOUR NAME COMMISSIONERS, PLEASE INDICATE YOUR PRESENCE BY SAYING HERE.

UH, COMMISSIONER BLACKBURN IS HERE.

COMMISSIONER WHITE.

CAN YOU, CAN YOU SAY THAT AGAIN? MAKE SURE WE GOT THE SOUND WORKING OVER HERE.

YEAH.

HERE.

ALL RIGHT.

THAT CAME THROUGH.

THANK YOU.

COMMISSIONER DAVIS IS HERE.

AND GO.

IS NOT HERE.

JOHNSON NOT HERE.

ROBINS HERE.

STONE HERE.

HARMON, ABSENT.

BRENEMAN AND COMMISSIONER SARIA HERE.

THANK YOU.

DID I MISS ANYONE? ALL RIGHT.

CONFIRMED THAT WE HAVE A QUORUM.

UH, SO WE WILL JUMP RIGHT INTO IT.

[PUBLIC COMMUNICATION: GENERAL]

UH, FIRST UP, PUBLIC COMMUNICATION.

UH, WE HAVE TWO FOLKS, UH, SIGNED UP TO SPEAK.

UH, YOU GUYS WILL BOTH BE ALLOTTED FIVE MINUTES A PIECE.

UH, JAMES, I BELIEVE YOU ARE UP FIRST, LET ME MAKE SURE MY, UH, PRESENTATION GETS PULLED UP HERE REAL QUICK.

THERE WE GO.

OKAY.

LET ME START MY, UM, GOOD EVENING.

I'M JAMES BRAZEL, UH, SPEAKING FOR SIERRA CLUB, PUBLIC CITIZEN AND SOLO UNITED NEIGHBORS.

AND I'M TALKING ABOUT, I'M GONNA, MY COMMENTS RELATE TO AGENDA ITEM NUMBER FOUR.

UH, I'VE HANDED OUT COPIES OF MY SLIDES, BUT I THINK YOU'VE ALSO BEEN MAIL THEM.

SO, UH, NEXT SLIDE PLEASE.

THIS FIRST SLIDE, JUST SO THAT YOU KNOW WHAT YOU'RE LOOKING AT, IS A SUMMARY OF OUR POSITIONS AND THE RATE CASE, UH, THE BASIC CASE.

YOU CAN TAKE A LOOK AT IT AT YOUR CONVENIENCE.

I'LL BE ADDRESSING EACH OF THE FOLLOWING FOUR SLIDES FOR ISSUES ONE THROUGH FOUR.

NEXT SLIDE PLEASE.

ISSUE NUMBER ONE, AUSTIN ENERGY FAILED TO MEET ITS BURDEN OF PROVING THE PRUDENCE OF CONTINUING IN THE FAYETTE COAL PLANT BEYOND THE YEAR END 2022.

TARGET CEASE OPERATION DATE IN THE 2030 RESOURCE PLAN.

THOUGH THE DATE WAS A PRIORITY IN THE PLAN, AE DIDN'T INCLUDE A SINGLE WORD ABOUT THE STATUS OR THE PROGRESS OF COMPLYING WITH THAT DEADLINE IN ITS RATE FILING.

BECAUSE OF THAT RATE, THAT FAILURE, SIERRA CLUB AND THE OTHER PARTIES BELIEVE THAT THE FAYETTE COSTS SHOULD BE REJECTED.

OR AT THE VERY LEAST, THE CITY SHOULD REOPEN THE RESOURCE PLANNING PROCESS TO EVALUATE CONTINUED FAYETTE OPERATION AFTER 2022.

IT SHOULD DO SO IN LIGHT OF THE INFLATION REDUCTION ACT, WHICH MAY ALLOW THE CITY TO FIND IMPORTANT, LEAST COST LEAST RISK GENERATION OPTIONS AVAILABLE FOR MUNICIPALLY OWNED UTILITIES TO REPLACE FAYETTE'S CAPACITY.

NEXT SLIDE, PLEASE.

ISSUE NUMBER TWO, AUSTIN ENERGY'S PROPOSED 150% INCREASE.

THIS IS THE RATE DESIGN ISSUE.

INCREASE IN THE RESIDENTIAL FIX CHARGE FROM $10 TO $25 WILL CAUSE RATE SHOCK AND IT WILL ABANDON.

AUSTIN ENERGY'S VERY SUCCESSFUL CONSERVATION RATE DESIGN A'S MISGUIDED ELIMINATION OF ITS VERY EFFECTIVE FIVE TIERED ENERGY CONSERVATION BLOCK RATE IN FAVOR OF A FLAT THREE TIERED RATE IS BAD RATE POLICY THAT THROWS OUT YEARS OF SUCCESSFUL CONSERVATION RATE DESIGN.

IT WILL HARM LOW INCOME AND LOW USAGE CUSTOMERS AND SEND SIGNALS THAT REVENUE AND CREDIT RATINGS ARE MORE IMPORTANT THAN CONTINUING AS A LEADER IN THE CON IN CONSERVATION POLICY.

NEXT SLIDE, PLEASE.

ISSUE NUMBER THREE, AUSTIN ENERGY'S PROPOSED CHANGES IN THE VALUE OF SOLAR TARIFF CALCULATION METHOD.

ABANDON THE SUCCESSES OF THE CURRENT METHOD THAT PROVIDE STRONG INCENTIVES FOR ROOFTOP SOLAR.

THEY'VE BEEN WORKING FOR YEARS.

THE PROPOSED STRUCTURE TREATS HOMEOWNERS AND SMALL BUSINESSES AS IF THEY WERE COMMERCIAL OR WHOLESALE SOLAR GENERATORS, FAILING TO RECOGNIZE THE DIFFERENCES IN THEIR INVESTMENT DECISIONS AND THAT THEY'RE NOT GOVERNED BY THE SAME ECONOMICS.

IF AUSTIN ENERGY'S VALUE OF SOLAR CHANGES ARE APPROVED, THE COST SHOULD BE RECOVERED ONLY THROUGH THE PSA AND BE BASED ON AFFORD AVOIDED COSTS ON A FIVE YEAR AVERAGE.

ALSO, AE SHOULD BE ORDERED TO HIRE A QUALIFIED THIRD PARTY EXPERIENCED IN VAL VALUE OF SOLAR METHODS TO A FACILITATE, FACILITATE A STAKEHOLDER PROCESS TO CAPTURE AVOIDED AND INCURRED COSTS THAT MAY NOT BE CAPTURED IN A'S PROPOSED METHOD.

AND B, TO DEVELOP A STANDARD OFFER PROGRAM FOR COMMUNITY SOLAR, AS IN ONE OF YOUR RESOLUTIONS.

[00:05:01]

UH, NEXT SLIDE PLEASE.

ISSUE NUMBER FOUR, FINAL ISSUE.

AUSTIN ENERGY'S PROPOSED EXEMPTION OF THE NEW P R I TWO HIGH LOAD INDUSTRIAL CUSTOMERS FROM THE ENERGY EFFICIENCY SERVICE CHARGE IS DISCRIMINATORY COUNTER TO THE CITY'S POLICY GOAL OF ROBUSTLY FUNDING ENERGY EFFICIENCY PROGRAMS GIVES UNFAIR AND UNSUPPORTED ADVANTAGE TO INDUSTRIAL CUSTOMERS OVER SMALL USERS, AND ASSUMES WITHOUT CONFIRMATION THAT INDUSTRIALS PROVIDE ENERGY EFFICIENCY BENEFITS BECAUSE OF THESE CONSIDERATIONS AND BECAUSE THEY ALSO BENEFIT THE INDUSTRIAL CUSTOMERS ALSO BENEFIT FROM THE PROGRAMS. ALL HIGH LOAD FACTOR OR HIGH LOAD CUSTOMERS SHOULD BE REQUIRED TO PAY THE EES FEE.

THOSE ARE ALL OF OUR ISSUES.

BUT WE ALSO ALSO WANTED TO TOUCH ON, IT APPEARS THAT, UH, THE ISSUE OF YOUR RESOLUTIONS FOR TONIGHT.

IT APPEARS YOU HAVE THREE RESOLUTIONS FOR, FOR TONIGHT THAT TIE RIGHT INTO THOSE ISSUES THAT I'VE MENTIONED.

FIRST ISSUE IS ONE RELATING TO THE RETAINING AUSTIN ENERGY'S CURRENT RESIDENTIAL PROGRESSIVE RATE STRUCTURE.

UH, THE SECOND ONE OR ANOTHER ONE IS RESOLUTION THAT REQUIRES THE P R I TO HIGH LOAD FACTOR CUSTOMERS TO PAY THE ENERGY EFFICIENCY SERVICE FEE.

AND THE THIRD ONE IS THE ONE THAT RELATES TO THOSE VALUE OF SOLAR PROPOSALS THAT THE, THAT MY PARTIES, UH, PROPOSED, UM, SIERRA CLUB, PUBLIC, CITIZEN AND SON SUPPORT ALL OF THOSE RESOLUTIONS.

THAT CONCLUDES MY COMMENTS.

THANK YOU.

I'D BE HAPPY TO ANSWER ANY QUESTIONS NOW OR WHEN YOU REACH, UH, AGENDA ITEM FOR IF YOU HAVE ANY QUESTIONS AT THAT TIME.

THANKS, JAMES.

UH, WE'LL, WE'LL SEE IF, UH, WE'LL, WE'LL HOLD OFF QUESTIONS UNTIL THAT AGENDA ITEM IF, IF SOMEONE HAS ANY.

OKAY.

THANK YOU VERY MUCH.

THANK YOU.

UH, NEXT UP WE HAVE, UH, LANETTA COOPER.

MY NAME IS LYNETTE COOPER.

I'M HERE ON BEHALF OF TWO W R AND WE ARE VERY, I'M SORRY, CAN YOU HEAR ME NOW? OKAY, I'M SORRY.

I FIND LIKE A VERIZON COMMERCIAL THERE AND, UH, WE'RE REALLY GLAD THAT YOU TO TO BE HERE AND FOR Y'ALL TO HAVE US HERE.

UH, I HAVE HAD SENT TO YOU GUYS A COPY OF THE EXCEPTIONS THAT WE FILED IN THE RATE CASE AND ALL EXCEPTIONS ARE THE JUDGE DECISION GOT IT WRONG.

AND SO WE POINTED OUT SOME OF THE THINGS, AND THE MOST IMPORTANT THING THAT WE THINK THAT THE JUDGE GOT IT WRONG WAS THE RATE DESIGN.

AND WHAT I INCLUDED IN THE EMAIL THAT WE SENT TO YOU, BESIDES THE EXCEPTIONS ARE THE APPENDIX, BUT ALSO A SERIES OF, UH, PAGES FROM THE AUSTIN ENERGY RATE FILING PACKAGE THAT REFER TO THE RATE DESIGN ISSUE.

AND THEN I ALSO HAVE INCLUDED FOR Y'ALL, A AND YOU AND I ALSO HANDED OUT A, A HARD COPY IS AN OUTLINE THAT'S JUST AS SPECIFICALLY ADDRESSING THE RATE DESIGN.

AND EACH OF THE ROMAN NUMERALS IS A ARGUMENT I'D LIKE TO CALL MYTHS THAT AUSTIN ENERGY HAS USED TO SAY WHY THE CURRENT RATE DESIGN NEEDS TO BE DRASTICALLY CHANGED.

OF COURSE, THE FIRST ONE THAT THEY ARGUE IS THAT WE ARE GONNA HAVE FINANCIAL, UH, CHAOS.

AND THAT'S JUST SIMPLY NOT TRUE.

UH, THE, THE, ALL THE YEARS THAT THEY RELIED ON EXCEPT FOR THE TWO THAT INVOLVE CATASTROPHIC YEARS, LIKE THE PANDEMIC AND, UH, THE WINTER STORM YEARY SHOWED SURPLUS PROFITS, WHICH IF WE, IF THEY WERE A PRIVATE COMPANY, THAT WOULD BE CONSIDERED EXCESS PROFITS.

UH, AND SO YOU CAN GO ON WITH THE OUTLINE.

I DON'T WANNA SPEND A LOT OF TIME THERE.

I DID WANNA SPEND SOME TIME ON, UH, THE TWO POINTS.

ONE IS THE CUSTOMER CHARGE, WHICH IS A COMPLETE OUTLIER.

I DON'T MEAN OUT AND OUTRIGHT OUTLIER, I MEAN OUTLIER IN THE STATISTICS SENSE, WHICH MEANS IT'S WAY, WAY OUT THERE.

WHEN YOU LOOK AT THE SIMILARLY SITUATED UTILITIES, BECAUSE THE SIMILARLY SITUATED UTILITIES LIKE CPS AT APOSTLE, THEY, UH, CUSTOMER CHARGES ARE 10 AND $8, WHICH IS PRETTY MUCH WITHIN OUR, OUR RANGE.

UH, WHAT HAS PUFFED UP THE CUSTOMER CHARGE IN AUSTIN ENERGY'S PROPOSAL IS SOMETHING CALLED INDIRECT CHARGES.

AND THE DIRECT CHARGE, WHICH IS THE DIRECT COST THAT AUSTIN ENERGY INCURS TO ACTUALLY, UH, SERVE THAT CUSTOMER, IS FIVE, ABOUT 5.8 MILLION FOR ONE OF THE CUSTOMER UNITS ACCORDING TO ICA.

AND THAT GETS BLOWN UP WITH A BUNCH OF INDIRECT COSTS TO 58 MILLION.

SO YOU CAN SEE THAT THEY'VE PUT A LOT OF PADDING ON IT.

THEY'VE PUT SO MUCH PADDING ON IT, THEY CAN'T GET THROUGH THE DOOR OF COMMON SENSE ANYMORE.

SO, UH, WE THINK THAT THAT IS A POOR ARGUMENT AND THAT WE SHOULD REALLY STAY WITHIN

[00:10:01]

THE, THE RANGE OF REASONABLENESS OF SIMILARLY SITUATED.

THE SECOND THING THAT IS ALSO EQUALLY VERY BAD IS THE SMASHING, LITERALLY THE SMASHING OF THE TEARS.

THEY WANNA HAVE PRACTICALLY A FLAT RATE.

AND IF YOU RAISE THE CUSTOMER CHARGE THE $25, YOU CAN END UP AS A PRACTICALLY A DECLINING BLOCK RATE.

IT'S GONNA TAKE MANY KILOWATT HOURS BEFORE YOU CAN EVEN THAT OUT.

AND THAT IS TOTALLY CONTRARY TO THE COST THAT HONEST EN AUSTIN ENERGY INCURS.

AND THIS IS ANOTHER BIG MYTH THAT AUSTIN ENERGY LIKES TO USE.

AND, UH, IT'S LIKE BIG USERS ARE SUBSIDIZING THE SMALL USERS AND THAT'S JUST NOT TRUE.

THE, IS THE ISSUE OF, OF SUBSIDY SHOULD REALLY COME DOWN IS WHO IS THE EFFICIENT USER? BECAUSE THE INEFFICIENT USER, WHICH CREATES HIGH DEMAND COST, THAT'S THE, THAT'S WHAT CAUSES THE INCREASED COST INTO THE RESIDENTIAL CUSTOMER CLASS.

AND WHAT THEY HAVE DONE BY SMASHING, WELL, GETTING RID OF THE FIFTH TIER AND SMASHING ALL THE OTHER TIERS TO WHERE THEY'RE MORE FLAT IS TO SHIFT THE HIGH SUMMER COST DOWN, OOPS, EXCUSE ME, TO THE LOWER CUSTOMERS.

AND THAT'S JUST INAPPROPRIATE.

I HAVE GIVEN YOU SOME PAGES FROM THE, UH, RATE FILING PACKAGE THAT SHOW YOU THAT, UH, IN THE SUMMER USAGE, THE AVERAGE USAGE IN RESIDENTIAL CLASS GOES UP 49%.

AND THE PRICE THAT WE CURRENTLY HAVE, THE PRICE GOES UP, THE BILL GOES UP, UH, 58%.

WELL, WHAT AUSTIN ENERGY DID WAS JUST TAKE A, UH, HAIRCUT TO IT AND THEY DROP THE 58% PRICE INCREASE BY 30%.

SO WHAT DOES THAT MEAN? THAT MEANS THAT THE COST THAT CLEARLY WE GET BECAUSE OF THE HIGH USAGE IN THE SUMMER, AUSTIN ENERGY IS NOT GONNA DENY THAT.

THAT'S WHERE WE MEASURE.

THAT'S THE DEMAND COST.

AND THE DEMAND COST REPRESENTS ABOUT 76% OF THE COST THAT AUSTIN ENERGY IS HAVING TO PASS ON TO RATE PAYERS DEMAND.

SO DEMAND IS AN IMPORTANT FACTOR, AND THAT COST IN THE SUMMER IS VERY, VERY HIGH.

AND IT'S BY THEIR CURRENT RATE DESIGN, THEY WANNA SMASH IT AND MOVE IT DOWN TO THE LOWER USERS.

AND PART OF THE REASON THEY'RE ABLE TO DO THAT IS THEY'RE JACKING UP THE CUSTOMER CHARGE.

AND THE CUSTOMER CHARGE IS TO GIVE PEOPLE ACCESS.

IT'S NOT TO, UH, CUT, RECOVER ANY OTHER COST.

THE WHOLE PURPOSE OF THE CUSTOMER CHARGE.

OH, I'LL STOP THERE CUZ I'VE KIND OF GONE THAT.

IF Y'ALL HAVE ANY QUESTIONS, I'D BE HAPPY IF YOU HAVE ANY.

ALL OF THIS IS FROM, UH, THE RECORD EVIDENCE.

IF Y'ALL EVER WANT A, UH, ANY SITES TO WHERE I'VE GOT THESE IN THE RECORD EVIDENCE, I'LL BE MORE THAN HAPPY TO GIVE THEM TO YOU.

ALL RIGHT, THANK YOU VERY MUCH.

WE, WE APPRECIATE IT.

YOU'RE WELCOME.

TAKE CARE.

UH, WILL YOU BE STAYING TILL ITEM FOUR? UH, IF Y'ALL PERCEIVE THAT THERE'S GONNA BE QUESTIONS, I CAN, I HAVE ONE.

OKAY.

WELL, WE'LL GET TO, WE'LL GET TO THAT ONE PRETTY, PRETTY QUICK, SO WELL THANK YOU SO MUCH.

ALL RIGHT.

UH, ALRIGHT, MOVING ON.

[1. Approve the minutes of the Resource Management Commission Regular Meeting on August 16, 2022.]

UH, TO AGENDA ITEM ONE, APPROVE THE MINUTES OF THE RESOURCE MANAGEMENT COMMISSION REGULAR MEETING ON AUGUST 16TH, 2022.

UH, DOES ANYONE HAVE ANY UPDATES TO THE MINUTES AS THEY WERE PRESENTED BY NATASHA? ALL RIGHT.

SEEING, SEEING NONE THE MINUTES ARE APPROVED.

[2. Recommend approving issuance of a five-year production-based incentive (PBI) to Paloma Ridge Owner, LLC, for the installation of solar electric systems on their facility located at 13620 N FM 620 Rd, Austin, TX 78717, in an amount not to exceed $2,041,981.]

UH, MOVING ON TO AGENDA ITEM TWO, RECOMMEND APPROVING ISSUANCE OF A FIVE YEAR PRODUCTION BASED INCENTIVE TO PALOMA RIDGE OWNER LLC FOR THE INSTALLATION OF SOLAR ELECTRIC SYSTEMS ON THEIR FACILITY, LOCATED AT 13 6 20 NORTH FM SIX 20 ROAD, AUSTIN, TEXAS IN AN AMOUNT NOT TO EXCEED $2,041,981.

UH, TIM HARVEY FROM AUSTIN ENERGY IS HERE.

IF ANYONE HAS ANY QUESTIONS, UH, IF NOT, I WOULD ENTERTAIN A MOTION TO APPROVE THIS PBI.

YOU HAVE SOME QUESTIONS? OKAY.

ALL RIGHT, TIM? YEAH.

COULD YOU COME ON UP? HI, I'M TIM HARVEY, CUSTOMER RENEWABLE SOLUTIONS MANAGER.

THANKS, TIM.

UH, COMMISSIONER STONE? UH, YES.

TELL ME ABOUT PALOMA RIDGE.

UM, I UNFORTUNATELY DID NOT HAVE TIME TO DO HOMEWORK AHEAD OF TIME.

UH, I JUST WANNA KNOW A LITTLE BIT MORE ABOUT WHO'S GETTING THE REBATE.

MM-HMM.

, UM, PALOMA RIDGE IS A OFFICE PARK.

UM, THEY HAVE I THINK SEVERAL TENANTS, I WANNA SAY ABOUT 10 COMMERCIAL, UM, TENANTS.

UM, THEY

[00:15:01]

HAVE, UH, THREE BUILDINGS AND THEY PLAN TO DO, UM, TWO POINT, WHAT WAS IT, 2.8 MEGAWATTS OR SOMEWHERE CLOSE TO THAT.

UM, EACH, EACH ONE OF THOSE SYSTEMS WOULD BE UNDER A MEGAWATT.

UM, AND SO THAT WOULD BE THE LARGEST CUSTOMER SIDED SOLAR, UH, PROJECT IN AUSTIN.

OKAY.

THANK YOU.

ALL RIGHT.

ANY FURTHER QUESTIONS? ALL RIGHT.

HEARING NONE, I WILL ENTERTAIN A MOTION TO APPROVE THIS PBI.

ANYONE APPROVAL? UH, COMMISSIONER WHITE MOVES TO APPROVE.

UH, LET'S GO DOWN AND TAKE A VOTE.

UH, COMMISSIONER BLACKBURN VOTES.

YAY.

COMMISSIONER WHITE? YES.

COMMISSIONER DAVIS.

VOTES IN FAVOR.

VOTES IN FAVOR? UH, COMMISSIONER EN GORI IS NOT HERE.

COMMISSIONER JOHNSON? UH, YES.

VOTES? YES.

MR. ROBBINS? YES, IT'S YES.

COMMISSIONER STONE? NO VOTES.

NO.

COMMISSIONER HARMON IS NOT HERE.

BR IS NOT HERE.

AND COMMISSIONER SHARIA? YES.

APPROVED.

UH, THE ITEM PASSES ON A SIX TO ONE TO ZERO VOTE.

ALL

[3. Staff briefing regarding the Fiscal Year 2022-2023 Customer Energy Solutions Budget by Richard Génecé, Vice President, Customer Energy Solutions, Austin Energy.]

RIGHT.

UH, NEXT UP STEPH BRIEFING REGARDING THE FISCAL YEAR 2022 TO 23 CUSTOMER ENERGY SOLUTIONS BUDGET BY RICHARD GENESEE, VICE PRESIDENT, CUSTOMER ENERGY SOLUTIONS, AUSTIN ENERGY.

WELCOME, RICHARD, DO YOU HAVE THE FLOOR? THANK YOU.

GOOD EVENING COMMISSIONERS.

I'M RICHARD GENESEE, VICE PRESIDENT OF CUSTOMER ENERGY SOLUTIONS WITH AUSTIN ENERGY, UH, AS WE'RE WAITING FOR MY PRESENTATION TO COME UP.

OKAY.

NEXT SLIDE.

SO TONIGHT, UH, YOU'LL RECALL THAT THIS, UH, WAS ORIGINALLY SCHEDULED FOR THE LAST MEETING, WHICH WE DIDN'T HAVE BECAUSE WE DIDN'T HAVE A QUORUM.

SO, UH, WE WILL TALK ABOUT THE FISCAL YEAR 23 BUDGET FOR CUSTOMER ENERGY SOLUTIONS.

SO FIRST SLIDE.

LOOKING BACK ON, UM, FISCAL YEAR 22, UH, WE HAVE OUR NEW HEADQUARTERS.

IN ADDITION TO RECEIVING A FIVE STAR AUSTIN ENERGY GREEN BUILDING RATING, THE BUILDING WILL ALSO ACHIEVE OR HAS ALSO ACHIEVED LEAD PLATINUM AND WELL BUILDING CERTIFICATIONS.

UM, ALSO THE SMART ENER SMART ELECTRIC POWER ALLIANCE RECOGNIZED AUSTIN ENERGY AS A A TOP 10 UTILITY.

UH, OUR LEADING UTILITY AS PART OF THEIR UTILITY TRANSFORMATION CHALLENGE, WHICH LOOKED AT FOUR DIMENSIONS OF UTILITY TRANSFORMATION.

THAT IS CLEAN ENERGY RESOURCES, MODERN GRID ENABLEMENT, CORPORATE LEADERSHIP, AND ALIGNED ACTIONS AND ENGAGEMENT IN THE AREA OF ELECTRIC VEHICLES AND, UM, AND EMERGING TECHNOLOGY.

WE WORKED WITH THE OFFICE OF SU SUSTAINABILITY AS CO-CHAIR OF THE TRANSPORTATION ELECTRIFICATION WORKING GROUP TO CREATE A GOAL FOR THE CITY IN THE CLIMATE EQUITY PLAN OF 40% ELECTRIC VEHICLE MILES TRAVELED ACROSS ALL SECTORS BY 2030, UH, ELECTRIC VEHICLES EMERGING TECHNOLOGIES SUPPORTED ELECTRIFY EXPO, WHICH IS THE LARGEST EV RIDE ALONG AND RIDE AND DRIVE EVENT IN THE COUNTRY.

WITH OVER 21,000 ATTENDEES IN OUR KEY ACCOUNTS GROUP, WE CONTINUE TO SUPPORT THE UNPRECEDENTED GROWTH IN AUSTIN, EXPANDING ENERGY EFFICIENCY, GREEN BUILDING AND GREEN CHOICE PARTICIPATION, AND SUPPORTING THE LOCAL DEVELOPMENT OF ERS AND RESILIENCY OFFERINGS.

IN OUR COMMERCIAL SOLAR PROGRAM, WE HAVE AN, WE HAD AN INCREASED FOCUS ON NON-PROFIT AND SMALL COMMERCIAL UPDATES TO MULTI-FAMILY OFFERINGS AND ROLLED OUT SHARED SOLAR.

THE SHOWCASE, UH, AUSTIN BERGSTROM INTERNATIONAL AIRPORT SOLAR PROJECT CAME ONLINE IN FISCAL 22, PROVIDED COVER COVERED PARKING AND SOLAR ENERGY FOR THE AIRPORT, AND AN ADDITIONAL 1.5 MEGAWATTS OF SOLAR CAPACITY TO THE COMMUNITY SOLAR PROGRAM BOOSTING THE NUMBER OF POTENTIAL SUBSCRIBERS TO 500.

THE ADDED CAPACITY, UH, THE ADDITIONAL PROGRAM CAPACITY IS FULLY, FULLY SUBSCRIBED.

AND LASTLY, WE ACHIEVED, WE WILL RECOGNIZE AS THE DOE PARTNER OF THE YEAR FOR SUSTAINED EXCELLENCE FOR HOME PERFORMANCE WITH ENERGY STAR AND WEATHERIZATION ASSISTANCE PROGRAMS. NEXT SLIDE PLEASE.

MOVING ON TO THIS YEAR, FISCAL

[00:20:01]

23 IN CUSTOMER RENEWABLE SOLUTIONS.

IN ADDITION TO MONEY FOR CBIS, ADDITIONAL MONEY HAS BEEN BUDGETED FOR PV METERS TO BE PAID DIRECTLY BY AE RATHER THAN BY THE CUSTOMER IN OUR ENERGY EFFICIENCY SERVICES.

ON THE COMMERCIAL SIDE, WE CONTINUE TO SIMPLIFY REBATES AND UPDATE INCENTIVES TO REFLECT CUSTOMER NEEDS.

OUR PROGRAMS WILL BE FOCUSED ON IMPROVING OFFERINGS TO BUNDLED SMART THERMOSTATS, H V A C AND LIGHTING UPGRADES FOR SMALL BUSINESS.

ALTHOUGH BUDGET IS SMALL, SLIGHTLY SMALLER THAN FISCAL 22, WE ANTICIPATE RUNNING, UH, OVER BUDGET AND EXCEEDING BUDGET FROM 22.

THE MULTIFAMILY DEPARTMENT OF ENERGY GRANT FUNDED GRANT WILL ALLOW US TO PROVIDE DEMAND RESPONSE AND ENERGY EFFICIENCY IMPROVEMENTS TO UP TO SIX MULTIFAMILY PROPERTIES WITH HALF OF THEM TARGETED TO BE PRIMARILY LOW INCOME.

THE OVERALL BUDGET IS APPROXIMATELY 1.5 MILLION WITH INCENTIVES GOING TO BOTH PROPERTY OWNERS AS WELL AS RESIDENTS.

THIS PROJECT IS THE FIRST ENERGY EFFICIENCY PROJECT BY AUSTIN ENERGY, LOOKING TO OVERCOME THE CHALLENGES PO POSED BY THE SPLIT INCENTIVE, MEANING THAT THE SPLIT INCENTIVE WHERE YOU HAVE THE CHALLENGE OF THE PROPERTY OWNERS AND THE RESIDENTS, UH, THE PROPERTY OWNER NOT WANTING TO INVEST IN THE PROPERTY AND THE PROPERTY RESIDENT NOT GETTING THE BENEFIT OF THE ENERGY EFFICIENCY PROJECT.

UH, WOULD YOU HIGHLIGHT THAT ONE MORE TIME, RICHARD? SURE.

THE DOE UH, FUNDED GRANT IS, IT'S APPROXIMATELY 1.5 MILLION WITH INCENTIVES GOING TO BOTH THE PROPERTY OWNER AS WELL AS THE RESIDENTS OF THE MULTIFAMILY, UH, DWELLING.

OKAY.

ON THE RESIDENTIAL SIDE.

NEXT SLIDE, PLEASE.

OH, I'M SORRY.

BACK ONE ON THE RESIDENTIAL SLIDE.

UH, RESIDENTIAL PROGRAMS ARE INCREASING EXPENDITURES FOR INSTANT SAVINGS ENHANCEMENTS.

THIS WILL HELP PROVIDE AN ONLINE CUSTOMER VALIDATION COMPONENT THAT WILL ALLOW CUSTOMERS TO VALIDATE BEING AN AE CUSTOMER AT THE POINT OF SALE TO RECEIVE LARGER REBATES FOR MORE EXPENSIVE PRODUCTS INSTANTLY.

AND THE LA THE ALL STARS PROGRAM FOR EDUCATION ABOUT ENERGY EFFICIENCY TO SCHOOLS WILL BE SCALING UP BUDGET TO A TOTAL OF 7,000 STUDENTS TO BENEFIT FROM EDUCATIONAL KITS, UH, THIS YEAR, AN INCREASE OF NEARLY 20%.

AND LASTLY, IN ELECTRIC VEHICLES, WE WILL BE BOOSTING OUR BUDGET FOR ADDITIONAL MAINTENANCE AND NETWORKING COSTS TO ACCOMMODATE CONTINUED GROWTH OF DC FAST CHARGERS AND LEVEL TWO PUBLIC CHARGING NETWORKS.

NEXT SLIDE PLEASE.

SO, AS YOU CAN SEE ON OUR OVERALL CES BUDGET, UH, THE COMBINED ONM BUDGET SHOWS A SLIGHT INCREASE FROM THE SLIGHTLY OVER 45 MILLION TO APPROXIMATELY $47 MILLION.

UH, APPROXIMATELY 39 MILLION OF THIS HAS ALLOCATED TO DEMAND SIDE MANAGEMENT PROGRAMS TARGETING 40 MEGAWATTS AND 132,000 MEGAWATT HOURS IN ANNUAL SAVINGS.

AND THE SOLAR INCENTIVE BUDGET AND SAVINGS BEING EAST ARE, HAVE BEEN INCREASED TO 8.1 MILLION AND 12 MEGAWATTS RESPECTIVELY.

NEXT SLIDE, PLEASE.

AS WE LOOK AT A LITTLE BIT MORE DETAIL REGARDING OUR, OUR FISCAL YEAR 23 BUDGET, IT'S, UH, REALLY IMPORTANT TO KEEP IN MIND THAT BUDGET IS NOT A LIMITING FACTOR FOR PROGRAM OUTREACH.

UH, LET ME MAKE SURE THAT'S UNDERSTOOD.

SO OUR BUDGET IS KIND OF A SNAPSHOT IN TIME, BUT WE DO NOT TURN CUSTOMERS AWAY FROM DEMAND.

IF WE EX GET CUSTOMERS THAT EXPRESS INTEREST, UH, IN A PARTICULAR PROGRAM, WE WILL EXCEED BUDGET IN ORDER TO ACCOMMODATE THAT CUSTOMER.

AND THE PROPOSED BUDGET FOR 23 WAS INITIALLY SUBMITTED BACK IN FEBRUARY.

THE AMENDED BUDGET, UM, IS, YOU KNOW, UH, SO IS IS SHOWN AS OF, UH, SEPTEMBER 20, SEPTEMBER 6TH.

WE RE RE WE ROUTINELY SHIFT MONEY ACROSS PROGRAMS, UH, AND YEAR OVER YEAR TO MEET VARIABILITY AND PROGRAM PARTICIPATION AS WELL AS COMMUNITY PROPERTIES.

OUR WATER HEATER TIMER PROGRAM IS BEING DISCONTINUED.

IT IS NOW COVERED BY CODE AND MONEY WILL BE REDIRECTED BASED ON PARTICIPATION FROM OTHER PROGRAMS TO SUPPORT WEATHERIZATION.

UM, WHILE THE PROPOSED BUDGET BUDGET FOR MULTIFAMILY WEATHERIZATION IS LOWER THAN THE AMENDED BUDGET EXPENDITURES FOR FISCAL 22 ARE ACTUALLY HIGHER THAN THE PROJECTED AND BUDGETED FOR THE YEAR AS MONEY WAS TRANSFERRED, UH, DUE TO SUCCESSFUL PROGRAM PARTICIPATION RATES.

NEXT SLIDE PLEASE.

THIS SLIDE DEPICTS OUR PROGRESS TO OUR

[00:25:01]

2030 DSM GOAL.

AS YOU CAN SEE ON THIS SLIDE, WE HAVE REMAINING 197.37 MEGAWATTS TO ACHIEVE OUR GOAL.

AND I WOULD SAY THAT THAT'S VERY ACHIEVABLE IN THE TIME WE HAVE LEFT UNTIL 2030.

UH, SAVINGS WILL CONTINUE TO DIMINISH DUE TO MARKET TRANSFORMATION AND ADJUSTMENTS IN BASELINE SUCH AS THE GREEN BUILDING CODE BASELINE.

AN EXAMPLE OF MARKET TRANSFORMATION IS THE ADOPTION OF L E D LIGHTING FOR RETROFITS BEING WIDESPREAD.

NEXT SLIDE PLEASE.

I'M SORRY.

YES.

L E D DOES THAT MEAN YOU'RE NOT GOING TO GIVE INCENTIVES FOR IT ANYMORE? NO, IT JUST MEANS THAT IT'S HARDER AND HARDER TO, UH, TO ACHIEVE BECAUSE, UM, SAVINGS WILL CONTINUE TO DIMINISH.

MARKET TRANSFORMATION IS THE ADOPTION OF L E D LIGHTING FOR RETROFITS BEING WIDESPREAD.

SO L E D LIGHTING, AS IT CONTINUES TO PROLIFERATE, IT IS HARDER TO GET SAVINGS FOR L E D LIGHTING BECAUSE ALL OF YOUR L E D LIGHTING PROJECTS HAVE BEEN, A LOT OF THEM HAVE BEEN COMPLETED ALREADY.

THEY BECOME MORE AND MORE WIDESPREAD, SO IT BECOMES HARDER AND HARDER TO FIND L E D LIGHTING RETROFIT PROJECTS TO PURSUE.

OKAY.

OKAY.

CUSTOMER CITED, SOLAR IS AT 50% TO GOAL AND LOCAL SOLAR IS APPROXIMATELY AT 78% TO OUR GOAL.

NEXT SLIDE.

OVERALL, PROJECTED SAVINGS ON THE RESIDENTIAL, UH, SIDE CONTINUE TO TREND DOWN ABOUT TWO MEGAWATTS TOTAL PROJECTED FOR RESIDENTIAL.

UH, THIS IS LARGELY A PRODUCT OF MARKET SATURATION AND TECHNOLOGY ADOPTION, ALTHOUGH OUR RESIDENTIAL SOLAR GOAL REMAINS AT SEVEN MEGAWATTS AND RESIDENTIAL GREEN BUILDING CODE SAVINGS PROJECTED TO DROP, UH, APPROXIMATELY TWO TO THREE MEGAWATTS, OR I'M SORRY, 2.3 MEGAWATTS DUE TO BASELINE CHANGES THAT'S ON THE RESIDENTIAL SIDE.

NEXT SLIDE, PLEASE.

ON THE COMMERCIAL SIDE, UH, SIMILAR TO OTHER SEGMENTS, COMMERCIAL ENERGY EFFICIENCY PROJECTS, UH, TO DECREASE APPROXIMATELY 10% OVER THE PRIOR YEAR, UH, THE COMMERCIAL SOLAR GOAL REMAINS AT FIVE MEGAWATTS AND PROPOSED ADDITIONAL SAVINGS IN GREEN BUILDING MULTIFAMILY RATINGS DUE TO SIGNIFICANT NEW CONSTRUCTION, MORE THAN OFFSET BY BASELINE CHANGES IN COMMERCIAL CODES SAVINGS AND DECREASE IN PROJECTED COMMERCIAL REBATES.

NEXT SLIDE PLEASE.

UNDER TRANSPORTATION ELECTRIFICATION, UH, WE HAVE INCREASED THIS BUDGET TO SUPPORT MAINTENANCE AND NETWORKING OF OUR PRO PUBLIC CHARGING INFRASTRUCTURE BY APPROXIMATELY $250,000, UH, OVER OUR LAST YEAR.

AND THEN THIS IS ALSO A PLACE, UH, MOST NOTABLY IN OUR PORTFOLIO WHERE A HUNDRED THOUSAND DOLLARS IN NEW FUNDING HAS BEEN SPECIFICALLY, UH, DEDICATED TO SUPPORT EQUITABLE PROGRAMS. NEXT SLIDE, PLEASE.

WE CONTINUE TO SEE CONSIDERABLE GROWTH AND INTEREST IN ADOPTION OF ELECTRIC VEHICLES AS EVIDENCED BY THE CONTINUED RISE IN THE NUMBER OF INSTALLED PUBLIC CHARGING STATIONS IN OUR NETWORK, AS WELL AS PARTICIPATION IN OUR RESIDENTIAL EV REBATE PROGRAM.

AND HERE I'D ALSO LIKE TO COMMENT ON OUR EV BUYERS GUIDE, UH, WHICH HAS SEEN PHENOMENAL GROWTH FROM WHAT USED TO BE AN AVERAGE OF A THOUSAND HITS IS NOW UP TO 2000 HITS.

UM, YOU KNOW, I CAN'T REMEMBER IF THAT'S ON A DAILY OR WEEKLY BASIS, BUT IT'S A SIGNIFICANT, UH, VOLUME INCREASE IN TERMS OF HOW MANY UNIQUE VISITORS ARE COMING TO OUR EV BUYERS, UH, GUIDE SITE.

AND REMEMBER THAT IS FEEDING DEALERSHIPS IN THE AUSTIN, UH, SERVICE TERRITORY.

UM, SO IT'S A SIGNIFICANT SOURCE OF, UH, SALES INPUT TO THEM.

AND THESE, THESE UNIQUE VISITORS THAT REMEMBER OUR EV BUYERS GUIDE IS LINKED DIRECTLY TO USED AND NEW EV UH, VEHICLES THAT ARE AVAILABLE TO PURCHASE TODAY AT 20 DEALERSHIPS IN THE AUSTIN ENERGY, UH, SERVICE TERRITORY.

NEXT SLIDE, PLEASE.

I'VE MENTIONED, UH, HERE BEFORE THAT EQUITY IS VERY IMPORTANT TO AUSTIN ENERGY AND TO CUSTOMER ENERGY SOLUTIONS.

WE STRIVE TO ADVANCE EQUITY THROUGH OUR PROGRAMS AND OUR ACTIVITIES.

LOOKING AT OUR PROGRAMS THROUGH AN EQUITY LENS IS A BASIC COMPONENT OF PROGRAM DESIGN WITHIN CUSTOMER ENERGY SOLUTIONS, AS WELL AS AUSTIN ENERGY.

MORE BROADLY, UH, FOLLOWING ARE SOME OF THE EQUITY BASED ACTIVITIES WE HAVE BEEN OR ARE CONTINUING TO UNDERTAKE.

UH,

[00:30:01]

WE ARE ENGAGED IN AN EQUITY AUDIT.

WE HAVE HIRED A THIRD PARTY CONTRACTOR, UH, TO ASSIST US IN THAT AUDIT, SPECIFICALLY LOOKING AT RESIDENTIAL ENERGY EFFICIENCY, COMMUNITY, SOLAR AND, UH, TRANSPORTATION ELECTRIFICATION PROGRAMS THAT, UH, THAT CONTRACTOR'S HELPING US SOLICIT FEEDBACK FROM REPRESENTATIVES OF UNDERSERVED COMMUNITIES AND LOOKING TO IDENTIFY BARRIERS, UH, TO PROGRAM DESIGN AND PARTICIPATION AND ISSUING RECOMMENDATIONS TO ADDRESS THOSE BARRIERS.

UH, WE EXPECT A FINAL REPORT TO BE ISSUED IN DECEMBER OF THIS YEAR, AND THEN WE, AND WE WILL BE HOLDING OUR THIRD PUBLIC MEETING ON OCTOBER 26TH.

UNDER WEATHERIZATION, UM, AE WEATHERIZATION, MULTIFAMILY INCOME QUALIFIED AND CAP WEATHERIZATION ARE ALL KEY COMPONENTS FOR ADDRESSING EQUITY.

WE HAVE INCREASED THE WEATHERIZATION BUDGET 300,000, AND HAVE SEEN AN INCREASE IN APPLICATION GROWTH OF OVER 600% FROM LAST YEAR.

WE ARE NOT SEEKING ADDITIONAL BUDGET FOR THIS PROGRAM, UH, FOR THE COMING YEAR BECAUSE WE ARE STILL EXPERIENCING, UH, SIGNIFICANT SUPPLY CHAIN AND WORKFORCE ISSUES THAT HAS LIMITING FACTORS IN THE PROGRAM SUCCESS MULTI-FAMILY.

UH, ALTHOUGH THE BUDGET FOR, UH, THIS YEAR FISCAL 23 SHOWS A SLIGHT DECREASE, UH, FOR IT, IT HAS INCREASED TO TARGET MEGAWATTS.

THE TARGET MEGAWATT GOAL HAS INCREASED OVER LAST YEAR.

UH, AS WE PREVIOUSLY MENTIONED, THE DOE BUILDING TECHNOLOGIES GRANT IS ONE WAY.

WE ARE ADDRESSING MULTI-FAMILY CHALLENGES USING INCENTIVES TO LEVERAGE ADDITIONAL CAPITAL FROM OWNERS.

THE MULTIFAMILY INCOME QUALIFIED PROGRAM HAS FAR EXCEEDED TARGETS LAST YEAR WITH CLOSE TO 200% OF THE MEGAWATT SAVINGS.

WHILE AT 118% OF BUDGET, WE SHIFTED FUNDING FROM THE STANDARD MULTIFAMILY PROGRAM INTO THE MULTIFAMILY INCOME QUALIFIED PROGRAM TO ADDRESS THIS OVER BUDGET UNDER TRANSPORTATION ELECTRIFICATION, UNDERSTANDING THAT ELECTRIC CARS ARE NOT AN AFFORDABLE OPTION FOR EVERYONE.

WE HAVE INVESTED SIGNIFICANT TIME AND EFFORT INTO THE DEVELOPMENT OF OTHER TRANSPORTATION ELECTRIFICATION OPTIONS SUCH AS E-BIKES, BUSES, ELECTRIC RIDE SHARING, AND BROADER TRANSPORTATION ELECTRIFICATION INITIATIVES SUCH AS PROJECT CONNECT AND AUSTIN CLIMATE EQUITY PLAN.

WE LOOK TO THE ADDITIONAL BUDGET THIS YEAR TO SIGNIFICANTLY AID IN FURTHER PROGRAM DEPLOYMENT DIRECT TO CUSTOMER RETAIL PROGRAMS. WE ARE INVESTING ADDITIONAL FUNDING IN THESE PROGRAMS IN ADDITION TO MAKING THEM MORE USER FRIENDLY THROUGH POINT OF SALE IMPROVEMENTS AND VALIDATING ELIGIBILITY, AS WELL AS PROVIDING PAYMENT UPON PURCHASE.

AND AS I MENTIONED PREVIOUSLY, COMMUNITY SOLAR, UM, IS FULLY SUBSCRIBED.

WE CONTINUE TO LOOK AT OTHER AVENUES FOR PROVIDING ADDITIONAL CAPACITY.

UH, UNDER H V A C, WE CONDUCTED A FREE H V A C PILOT.

WE PROVIDED FREE H V A C SYSTEMS TO CAP CUSTOMERS ON THE MEDICALLY VULNERABLE REGISTRY, AND THEN LEVERAGING CURRICULUM IN TITLE ONE SCHOOLS.

IN ADDITION TO THE ALLSTARS PROGRAM, UH, THAT I PREVIOUSLY MENTIONED, WHICH PROVIDES ENERGY EFFICIENCY CURRICULUM AND KITS FOR STUDENTS.

WE ALSO CONTINUE TO SUPPORT AND PROVIDE OUR EV FOR SCHOOLS CURRICULUM THROUGH A PARTNERSHIP WITH ECO RISE.

FOR THOSE THAT ARE NOT FAMILIAR WITH TITLE ONE, IT IS A FEDERAL EL ELEMENTARY AND AND SECONDARY EDUCATION PROGRAM WITH THE GOAL OF HELPING AT RISK STUDENTS.

WE TAKE OUR COLLABORATION WITH COMMUNITY GROUPS SERIOUSLY.

FOUNDATION COMMUNITIES AND THE TEXAS POVERTY RESEARCH INSTITUTE ARE JUST TWO EXAMPLES OF THE PARTNERS IN THE COMMUNITY THAT WE WORK WITH TO ADVANCE EQUITY IN OUR PROGRAMS, AS WELL AS THE BROADER COMMUNITY AT LARGE.

THE BUILD BETTER PROGRAM IS MANDATORY UNDER THE REVISED CITY GREEN BUILDING PROJECT POLICY FOR PROJECTS, MEETING A REQUIRED DOLLAR THRESHOLD, AS WELL AS GARNERING POINTS FOR VOLUNTARY PARTICIPATION AS PART OF THE AUSTIN ENERGY GREEN BUILDING RATINGS.

AND THAT CONCLUDES MY PRESENTATION.

ALL RIGHT.

THANK YOU VERY MUCH, RICHARD.

WE APPRECIATE IT.

UH, COMMISSION.

ANY, UH, QUESTIONS FOR RICHARD? UH, COMMISSIONER WHITE, THANK YOU FOR THE PRESENTATION.

RICHARD, I WAS JUST, UH, HOPING THAT YOU COULD SHARE A LITTLE BIT, A LITTLE MORE ABOUT THE, UM, STATUS OF THE SHARED SOLAR RULE OUT, UM, TO, TO MULTI-FAMILY PROPERTIES.

IS THAT NOW AVAILABLE TO ALL MULTI-FAMILY PROPERTIES OR YEAH, JUST ANYTHING YOU CAN FILL WITH US ABOUT THAT.

I'M GONNA HAVE TIM COME

[00:35:01]

BACK UP AND ADDRESS THAT QUESTION.

TIM HARVEY, CUSTOMER RENEWABLE SOLUTIONS MANAGER.

UM, YEAH, SO, UM, WE HAVE OPENED IT UP PRETTY BROADLY TO, UM, INCLUDE ANY MULTI-FAMILY, UM, ORGANIZATIONS THAT ARE LISTED.

AND I'M TRYING TO THINK OF THE NAME OF THE, UM, LIST THAT IT'S ON, BUT IT'S FOR, IT'S BASICALLY ANYBODY WHO INCLUDES, UM, AFFORDABLE, UM, MULTI-FAMILY UNITS IN, IN THEIR PROJECT.

IT'S A PRETTY BROAD LIST, UM, BUT TO DATE, UM, WE STILL HAVE NOT HAD ANY INTEREST.

UM, SO WE'RE LOOKING AT POTENTIALLY EXPANDING THAT A BIT MORE.

UM, AS YOU CAN IMAGINE, I THINK, UM, ONE OF THE BIGGEST BARRIERS HERE IS THE SPLIT INCENTIVE.

SO WHILE, UM, PROJECTS LIKE HACA AND, AND GN D C HAVE, UM, HUD FUNDS THAT THEY CAN LEVERAGE TO KIND OF OVERCOME THAT SPLIT INCENTIVE, UM, FOR NORMAL MULTI-FAMILY OPERATIONS, UM, IT'S, IT'S THAT, YOU KNOW, AGE OLD PROBLEM WHERE THE INVESTOR WOULD BE THE, UM, THE MANAGEMENT COMPANY, UH, OR OWNER OF THE MULTI-FAMILY, UM, UH, FACILITY, BUT THEN THE TENANTS ARE THE ONES WHO GET THE BENEFIT.

SO THAT SPLIT INCENTIVE MAKES THINGS, UM, PRETTY DIFFICULT TO MOVE FORWARD AND TO ENTICE PEOPLE.

UM, I, THERE IS, YOU KNOW, POTENTIAL FOR THAT TO HAPPEN IN AN ALL BILLS PAID, UM, SCENARIO AND OR IF THEY'RE MARKETING FOR, UM, A GREEN, YOU KNOW, PLACE TO LIVE AND, UM, THEY KIND OF INCLUDE THAT PREMIUM INTO THE RENT, BUT THAT'S PRETTY MUCH THE ONLY WAY THAT THEY CAN RECOUP THEIR INVESTMENTS ON SOLAR.

SO THAT'S PART OF THE ISSUE.

THANKS, TIM.

AND THAT 1.5 MILLION, IS THAT INTENDED TO, UM, TRY TO GET SOME OF THOSE PROPERTIES TO, TO, YOU KNOW, MOVE FORWARD AND UTILIZE THIS FEATURE? UH, WHEN YOU SAY 1.5 MILLION, YOU'RE REFERRING TO PART OF THE INCREASE TO THE SOLAR BUDGET? UM, I, I THOUGHT THAT RICHARD MENTIONED A 1.5 MILLION GRANT.

MAYBE I MISD IT OR MISSED CERTAIN, THAT'S THE DOE GRANTS ON MULTIFAMILY.

OH YEAH, NO, THAT'S FOR, UM, WEATHERIZATION, I BELIEVE FOR, FOR, UH, MULTI-FAMILY.

OKAY.

SO IT DOESN'T APPLY TO SIMILAR.

CAN, CAN YOU REMIND ME APPROXIMATELY LIKE WHAT WAS SPENT TO IMPLEMENT THE SHARED SOLAR, UM, BILLING UPDATE? DO YOU HAVE A, I I'M SORRY.

I I HAD TROUBLE HEARING YOU.

WHAT WAS MEANT TO, UH, I'M, I'M, I'M WONDERING IF YOU CAN REMIND US, YOU KNOW, APPROXIMATELY HOW MUCH, UH, FUNDS WERE SPENT ON IMPLEMENTING SHARED SOLAR ON IMPLEMENTING SHARED SOLAR? UM, I, YEAH, MAKING, I WOULD HAVE TO, I WOULD HAVE TO DO AN ANALYSIS ON THAT.

I CAN TELL YOU THAT IT WAS, UM, MANY, MANY, UM, PERSONNEL HOURS FOR THE UTILITY, UM, TO WORK THROUGH THE CHALLENGES OF GETTING THAT STOOD UP IN THE BILLING SYSTEM.

UM, BUT I DON'T THINK WE'VE DONE A TOTAL ANALYSIS OF WHAT THE COST OF THAT WAS.

OKAY.

WELL, YEAH, AND I KNOW THAT, THAT YOU AND A BUNCH OF OTHER PEOPLE PUT IN A LOT OF TIME.

UM, AND SO I GUESS I'M JUST, I'M KIND OF WONDERING LIKE WHY NOT JUST OPEN IT UP SO THAT ANY MULTI-FAMILY PROPERTY CAN, CAN USE IT? IT SEEMS LIKE WE'VE PAID THAT INVESTMENT AND WE WANT MORE SOLAR.

WHAT, WHY? AND IT'S, IT'S NOT HAPPENING IN THIS SEGMENT OF THE MARKET, WHICH I THINK WE ALL WOULD LIKE IT TO HAPPEN.

SO HOPEFULLY WE CAN CRACK THAT NUT.

BUT IN THE MEANTIME, WHY, WHY NOT LET ANY OTHER PROPERTIES THAT, THAT MIGHT WANT TO UTILIZE, YOU KNOW, THIS FEATURE MOVE FORWARD? YEAH, UH, WELL I THINK THAT WE'RE, UM, PROBABLY MOVING IN THAT DIRECTION.

UM, WE WANTED TO KEEP IT LIMITED AT FIRST CUZ WE JUST WEREN'T SURE, UH, WHAT KIND OF UPTAKE WE WOULD HAVE.

BUT, UM, I THINK WE PLAN TO OPEN THE DOOR EVEN WIDER UNTIL, AND PROBABLY ALL THE WAY JUST SO THAT WE CAN, UM, SEE IF WE CAN ENTICE SOME INTEREST IN THAT, THAT PROGRAM.

WE CERTAINLY WANT IT TO BE UTILIZED.

OKAY.

DO I DON'T WANNA TAKE TOO MUCH TIME HERE.

DO YOU THINK WE COULD GET, I DON'T KNOW THIS AS AN AGENDA ITEM SO WE CAN UNDERSTAND THE TIMELINE FOR

[00:40:01]

FULLY OPENING THAT UP? YEAH, THAT'S FINE.

YEAH, I'D BE HAPPY TO.

COOL.

THANKS.

ALL RIGHT.

ANY OTHER QUESTIONS FOR RICHARD OR TIM? I HAVE A COUPLE AND, UH, I'LL TRY TO MAKE THEM AS BRIEF AS POSSIBLE.

UH, I GUESS THIS AS MUCH AS A COMMENT IS A QUESTION, BUT REGARDING SPUR, THE LAST TIME I LOOKED AT IT, THERE WERE A COUPLE ITEMS IN THERE THAT SEEMED, UH, BOTHERSOME TO ME.

ONE OF THEM WAS THAT WE CONTINUE TO REBATE FOR LEDS.

IS THAT STILL THE CASE? I I DON'T WANT TO ANSWER.

UM, WE HAVE SOMEONE ON THE LINE WHO I THINK RUNS OR IS IN THAT GROUP THAT HAS THE SPUR PROGRAM.

SO I THINK WE CAN, UH, GET THAT QUESTION ANSWERED DIRECTLY.

MY CONCERN IS THAT SINCE LEDS HAVE PRETTY MUCH TAKEN OVER THE LIGHTING MARKET, I DON'T KNOW WHY WE WOULD WANT TO CONTINUE TO REBATE FOR IT.

YEAH, AND I, I AGREE WITH YOU THAT FOR ALL OF OUR MEASURES, UH, AND INCENTIVES, THERE'S A PROGRESSION FOR, YOU KNOW, MAKE NOT CONTINUING TO INCENTIVIZE BEYOND THE POINT AT WHICH YOU NEED TO INCENTIVIZE FOR A PARTICULAR MEASURE.

AND THAT ALSO APPLIES TO PROGRAMS OVERALL.

BUT LET, LET US GET THAT SPECIFIC ANSWER FOR YOU AND, AND, UM, ADDRESS THE, UM, ITEM THAT USED TO BE PART OF SPUR WAS, UH, UH, SPRAY FOAM INSULATION THAT YOU WOULD PUT AROUND, UH, WINDOWS, FOR EXAMPLE.

UH, THE, IT WOULD EXPAND.

UM, WELL, IT DOES WORK AND IT WORKS VERY WELL, AND IT ALSO OFF GASES, CHEMICALS THAT ARE NOT TERRIBLY GOOD FOR YOU.

YEAH, I KNOW.

AND I THINK THAT THAT'S COME UP IN THE WORKING GROUP THAT, UH, YOU KNOW, YOU'RE A PART OF AND THAT I'VE ATTENDED BEFORE.

SO HOPEFULLY THAT IS SOMETHING THAT WE'RE GONNA, THAT WILL BE ADDRESSED IN THE RMC TOXIC BUILDING MATERIALS WORKING GROUP.

BUT I, I'M, I'M FAMILIAR WITH THE OFF GASSING THAT OCCURS WITH SPRAY FOAM.

ONE LAST QUESTION.

YEAH.

WHY, UM, HOW IS INFLATION IMPACTING YOUR ABILITY, YOUR, THE EFFECTIVENESS OF YOUR BUDGET? WELL, I WOULD SAY INFLATION MORE IMPACTS.

UM, IT MAY IMPACT, I, I HAVEN'T, I DON'T KNOW THAT I'VE SEEN IT IMPACT TO DATE, UH, PROGRAM PARTICIPATION MORE THAN THE ACTUAL BUDGET.

UH, I DON'T THINK THERE'S ANY IMPACTS, DIRECT IMPACTS THAT I'VE OBSERVED IN OF INFLATION TO THE BUDGET.

IN OTHER WORDS, IT HASN'T IMPACTED WHAT WE'VE SET FOR THE BUDGET.

UM, IN FISCAL 23, IT COULD IMPACT INFLATION IN TERMS OF AFFECTING PEOPLE'S POCKETBOOK AND ABILITY TO PARTICIPATE IN PROGRAMS. IF THERE'S A COST TO PARTICIPATE IN THE PROGRAMS, I COULD SEE IT IMPACTING, UH, THAT.

BUT IN AS FAR AS IMPACTING HOW WE SET THE BUDGET FOR THE PARTICULAR PROGRAMS DIRECTLY, I HAVEN'T SEEN THAT IMPACT.

ALL RIGHT.

YEAH, REAL QUICKLY, STAFF TOLD ME THAT WE'RE PHASING OUT LEDS ON.

GREAT.

GOOD.

JUST REPEATING FOR FOLKS ON THE, UH, ON THE LINE, WE ARE PHASING OUT INCENTIVES ON SPUR FOR LEDS TO ANSWER, UH, COMMISSIONER ROBIN'S QUESTION.

THANK YOU.

ALL RIGHT.

ANY OTHER QUESTIONS? ALL RIGHT.

SEEING NONE.

THANK YOU VERY MUCH, RICHARD FOR BEING HERE.

TIM, YOU AS WELL.

ALWAYS GOOD TO HAVE YOU.

[4. Discussion and possible action on the proposed changes to the Value of Solar tariff, Energy Efficiency Services fee, residential rate structure at Austin Energy and proposed draft Resource Management Commission resolutions. (Sponsors: Robbins, White, and Brenneman)]

ALL RIGHT.

UH, MOVING ON.

I'M FOUR DISCUSSION AND POSSIBLE ACTION ON THE PROPOSED CHANGES TO THE VALUE OF SOLAR TARIFF ENERGY EFFICIENCY SERVICES FEE, RESIDENTIAL RATE STRUCTURE AT AUSTIN ENERGY AND PROPOSED DRAFT RESOURCE MANAGEMENT, COMMISSION RESOLUTIONS, SPONSORS, ROBINS WHITE AND BRENNAMAN.

UH, JUST GETTING TO THIS ITEM, JUST A REMINDER OF HOW, UH, THIS PROCESS WORKS.

SO, UH, THE SPONSORS, YOU GUYS HAVE INCLUDED THREE PROPOSED RESOLUTIONS.

UH, WHAT I WOULD LIKE TO DO IS HAVE, UH, ONE OF YOU GIVE, GIVE US AN OVERVIEW OF WHAT YOU'RE LOOKING TO ACHIEVE HERE, UH, EITHER IN GENERAL OR WE CAN TAKE THOSE ONE AT A TIME.

UH, WE DO HAVE REPRESENTATIVES FROM AUSTIN ENERGY TO ANSWER ANY QUESTIONS AS WELL AS OUR, UH, TO, UH, JAMES AND LANETTA THAT, UH, SPOKE EARLIER.

UH, IF ANYONE HAS ANY FURTHER QUESTIONS FOR THEM, UH, I WOULD PREFER IF WE HAVE ANY QUESTIONS FOR JAMES OR LANETTA, LET'S, LET'S GO AHEAD AND

[00:45:01]

ADDRESS THOSE IN, IN CASE THEY NEED TO, TO LEAVE, WE CAN, WE CAN GO AHEAD AND GET THOSE, UH, ANSWERED, UM, FROM A PROCEDURE STANDPOINT.

SO, UH, IF, IF SOMEONE WANTS TO MAKE A MOTION TO APPROVE A RESOLUTION, UH, YOU WOULD DO SO THAT WOULD'VE THEN OPENED THE FLOOR FOR DEBATE ON THAT RESOLUTION.

UM, ONCE DEBATE IS OPEN, IF SOMEONE HAS AN AMENDMENT TO, UH, THE PROPOSED RESOLUTION, UH, YOU'RE WELCOME TO OFFER THAT AS WELL.

UH, AMENDMENTS WILL BE VOTED UP OR DOWN ON A, UH, MAJORITY BASIS.

SO IN THIS CASE, SINCE THERE ARE, I BELIEVE SEVEN OF US, THAT WOULD BE FOUR TO PASS AN AMENDMENT.

UH, THE RESOLUTION AS A WHOLE, UH, REQUIRES A QUORUM, WHICH IS SIX, UH, TO, TO ADOPT, UH, ANY GIVEN RESOLUTION AS A WHOLE.

UH, SO WITH THAT, UH, I WOULD FIRST ASK, UH, ONE OF THE SPONSORS, UH, ROBINS WHITE OR B BRENNEMAN, TO GIVE US AN UPDATE OF WHAT YOU'RE TRYING TO ACCOMPLISH HERE.

UM, OKAY.

FIRST, UM, I, UH, COMMISSIONER BRENEMAN IS NOT HERE, AND, UH, COMMISSIONER WHITE IS, I WOULD SUGGEST KABA THAT I, UH, DISCUSS THE ELECTRIC RATE INCREASE AND THE ENERGY EFFICIENCY SERVICES, THE, UH, ISSUE AND THAT YOU DISCUSS THE RESOLUTION ON VALUE OF SOLAR.

IS THAT, UH, GOOD FOR YOU? THAT SOUNDS GREAT.

THANKS PAUL.

UM, OKAY, REGARDING, UM, THE, UM, RATES, I HAVE A SHORT PRESENTATION, UH, AND I AM SENSITIVE TO THIS COMMISSION'S CONCERNS ON TIME, SO I WILL KEEP IT AS BRIEF AS POSSIBLE.

UH, AND AFTER THAT, I DID WANT TO ASK, UH, THE TWO GUESTS, UM, JUST A COUPLE QUESTIONS.

UH, COULD YOU PLEASE QUEUE UP THE PRESENTATION? NEXT SLIDE.

UM, AUSTIN ENERGY HAS SOME OF THE LOWEST, REALLY THE LOWEST RATE OF ANY MAJOR, UH, UTILITY IN AIRCO.

UH, WE ARE IN, THERE'S ONLY 2% OF AIRCO CUSTOMERS THAT HAVE LOWER CONS, LOWER AVERAGE RESIDENTIAL CONSUMPTION THAN AUSTIN ENERGY, AT LEAST IN 2021, WHICH THIS SLIDE REPRESENTS.

UH, NEXT SLIDE.

UH, AND THERE ARE FOUR REASONS FOR IT.

THE ENERGY BUILDING CODE, OUR PROGRESSIVE RATE STRUCTURE, AUSTIN ENERGY'S EFFICIENCY PROGRAMS, AND THE GREEN BUILDING PROGRAM, WHICH ACTUALLY STARTED AS AN ENERGY STAR PROGRAM AND THEN MORPHED INTO THE GREEN BUILDING PROGRAM.

NEXT SLIDE.

AND AUSTIN ENERGY'S PROPOSAL WILL COMPLETELY ELIMINATE ONE OF THESE STRATEGIES THAT HAS MADE OUR ENERGY EFFICIENCY SO SUCCESSFUL.

NEXT SLIDE.

UH, AND AUSTIN ENERGY IS PROPOSING TO CHANGE OUR $10 A MONTH, UH, FEE TO $25 A MONTH.

AND THE, OUR UTILITY, AUSTIN ENERGY IS JUSTIFYING THAT BY SAYING, WELL, LOOK AT OUR NEIGHBORS.

WE'RE NOT SO DIFFERENT THAN GEORGETOWN OR ELLIS ELECTRIC CO-OP OR BLUE BONNET CO-OP.

NEXT SLIDE.

BUT ACTUALLY, OUR PEERS ARE MUNICIPAL UTILITIES.

AND WHEN YOU LOOK AT THOSE, AUSTIN ENERGY'S PROPOSAL IS WAY, WAY OUT OF SYNC.

UH, THE AVERAGE CUSTOMER CHARGE FOR THE, UH, MUNICIPAL UTILITIES IN TEXAS IS ABOUT, UH, $10, WHICH IS WHAT AUSTIN ENERGY CHARGE IS.

NOW, NEXT SLIDE.

UH, AND THIS IS A LITTLE HARD TO READ, UH, UH, TO FOR SOME PEOPLE, BUT ON YOUR LEFT YOU HAVE THE CURRENT TIERS.

THERE'S FIVE OF THEM, AND THEY RANGE FROM 2.80 CENTS TO 10.80 CENTS, AND THEY INCENT A GREAT DEAL OF CONSERVATION.

UH, WHEREAS THE NEW TIERS, OR AT LEAST THOSE PROPOSED IN THE ORIGINAL RATE CASE, UH, ARE ONLY ABOUT, UH, PENNY APART BETWEEN THE BOTTOM AT 3.80 CENTS AND THE

[00:50:01]

HIGH CONSUMPTION TIER 4.80 CENTS.

NEXT SLIDE.

AND THIS TRANSLATES INTO TURNING THE PROGRESSIVE RATE STRUCTURE INTO A HIGHLY REGRESSIVE RATE STRUCTURE.

YOUR AVERAGE RATE, AT LEAST AS ORIGINALLY PROPOSED, WAS A $184 18% INCREASE.

BUT FOR SOMEONE WHO USES THREE TIMES AVERAGE, IT WOULD BE A $751 REDUCTION AND AN 18% DECREASE.

NEXT SLIDE.

AND AUSTIN ENERGY HAS TRIED TO, UH, RATIONALIZE THIS BY SAYING, WELL, THIS REALLY HELPS THE POOR BECAUSE POOR PEOPLE USE MORE THAN AVERAGE PEOPLE.

AND THIS GOES AGAINST EVERY STUDY ON THIS KIND OF THING THAT I'VE EVER SEEN IN MY 45 YEARS, UH, IN RESOURCE MANAGEMENT.

UH, AND WHAT IT DOES IS IT TAKES THE, USES, THE CUSTOMER ASSISTANCE PROGRAM CUSTOMERS AS A PROXY FOR ALL POOR PEOPLE.

UH, AND GIVEN THAT CUSTOMER ASSISTANCE PROGRAM, UH, CUSTOMERS, UH, ARE LARGELY IN, MOST OF THEM LIVE IN APARTMENTS, AND MOST OF THOSE APARTMENTS ARE ALL ELECTRIC, OR AT LEAST MOST APARTMENTS IN THE CITY ARE ALL ELECTRIC.

THEN YOU'VE GOT, UH, IT, IT, IT IT'S ACADEMIC THAT THE REASON THIS IS HAPPENING IS BECAUSE, UH, MORE CAP CUSTOMERS ARE ALL ELECTRIC THAN THE NON CAP CUSTOMERS, AT LEAST A GREATER PERCENTAGE OF THEM.

NEXT SLIDE.

BUT WHAT I DID WITH, UH, SOME AMOUNT OF WORK IS I ASKED AUSTIN ENERGY TO GIVE ME ALL THEIR CONSUMPTION BY ZIP CODE, UH, AND BY HOUSING TYPE THAT IS SINGLE FAMILY DUPLEX, MULTIFAMILY, AND THEN CROSS TAB THEM WITH THE CENSUS DATA ON INCOME.

AND THIS IS WHAT HAPPENS WHEN YOU LOOK AT THE ENTIRE RATE BASE.

UH, I DID IT IN QUARTILES.

AND WHAT THIS BASICALLY SAYS IS THE BOTTOM TWO QUARTILES OF INCOME USED ROUGHLY 7,900 KILOWATT HOURS OF ENERGY A YEAR PER HOUSEHOLD.

BUT THE THIRD QUARTILE USES 9,600 AND THE HIGHEST TIER OF INCOME, UH, THEY'RE USING 13,100.

NEXT SLIDE.

AND SO THE MORAL OF THIS STORY IS THAT THE PROPOSED RATE INCREASE PUNISHES BOTH ENERGY CONSERVATION AND LOW INCOME CUSTOMERS, WHICH IS WHY I AM MOVING TO, UH, TO ASK THE RESOURCE MANAGEMENT COMMISSION TO, UH, SUPPORT, UH, THE ITEM, UH, AS WRITTEN.

UH, IT PROPOSED RESOLUTION ON AUSTIN ENERGY, PROPOSED RESIDENTIAL ELECTRIC RATE INCREASE, UM, WHICH IS IN OUR BACKUP MATERIAL.

AND I'M SURE ALL OF YOU HAVE THIS IN HARD COPY OR ON YOUR COMPUTER.

UM, AND, UH, WITH THAT, COULD I ASK LYA COOPER TWO THINGS? YEAH, SURE.

I GUESS SHE, I COULD HAIL HER FROM ACROSS THE ROOM.

I'M PROBABLY LOUD ENOUGH.

YEAH, WE GOTTA GOTTA GET YOU ON A MIC.

YES, SIR.

I WOULD.

THANK YOU.

SO YOU ARE OFFICIAL.

I HAVE, UH, TWO QUESTIONS FOR YOU, LYA.

ONE, UM, YOU KIND OF, UH, LAUNCHED INTO YOUR PRESENTATION WITHOUT SAYING WHO YOU ARE, AND MANY OF THE COMMISSIONERS DON'T KNOW YOU.

COULD YOU TELL US HOW MANY YEARS YOU HAVE WORKED ON CONSUMER ADVOCACY, UH, IN ELECTRIC, UH, OR OTHER, UM, VENUES? WELL, I STARTED MY WORK WITH CONSUMERS UNION, AND I DID SOME WORK AT THE LEGISLATURE.

I PARTICIPATED IN WHAT BECAME, UH, THE STATUTES LIKE PURA SECTION, UH, 33 THAT DEALS WITH RATE DESIGN AND COST ALLOCATION.

UH, SO I'VE ALWAYS HAD AN A, AN INTEREST IN A WORK ETHIC IN COST ALLOCATION AND RATE DESIGN.

AFTER CONSUMERS UNION, I WORK FOR THE OFFICE OF PUBLIC UTILITY COUNCIL.

THAT IS A STATE AGENCY THAT, AS YOU CAN TELL BY ITS NAME, REPRESENTS CONSUMERS IN, UH, PUBLIC UTILITY MATTERS.

AND ONE OF

[00:55:01]

THEM, UH, IS ELECTRIC RATES.

I ALSO HAVE WORKED FOR, UH, TEXAS LEGAL SERVICE CENTER, AND I WAS THE ATTORNEY THAT WAS RESPONSIBLE FOR PARTICIPATING IN THE RATE CASE CASES, UH, ON ELECTRIC RATE CASES, AND ADVOCATING FOR THE BEST INTEREST OF RESIDENTIAL CONSUMERS.

AND SOMETIMES IT WASN'T JUST RATES, SOMETIMES IT WAS ENERGY EFFICIENCY AND OTHER ISSUES, BUT PRIMARILY IT WAS TO ENSURE THAT, UH, LOW INCOME FOLKS, UH, GOT THEIR FAIR, FAIR STATEMENT AND FAIR SHARE OF THE BENEFITS AS WELL AS, AS, AS THEIR FAIR COSTS.

SO HOW MANY YEARS IS, WELL, THAT'S, THAT'S KIND OF A PERSONAL QUESTION, BUT I, I WOULD, I WOULD VENTURE TO SAY IT'S SINCE THE EIGHTIES.

OKAY.

UH, THE OTHER QUESTION I GOT FOR YOU IS, UH, YOU HAD BRIEFLY MENTIONED IN YOUR PRESENTATION GIVING PEOPLE ACCESS.

YES.

AND NOT EVERYONE MIGHT HAVE UNDERSTOOD THAT.

COULD YOU QUICKLY DELINEATE WHAT YOU MEANT? WELL, THE PURPOSE OF, UH, THE COST HISTORICALLY AND CURRENTLY, AND EVEN IF YOU READ THE DEFINITION OF CUSTOMER SERVICE IN AUSTIN ENERGY'S RATE FILING PACKAGE, UH, THE PURPOSE OF A CUSTOMER CHARGE IS TO PROTECT THE UTILITY FROM, UH, BEARING THE COSTS OF A CUSTOMER WHO JUST LEAVES THE SYSTEM, AND WHAT IS THE COST TO SERVE THAT CUSTOMER OVER AND ABOVE SERVING THE GENERAL CUSTOMER BASE.

AND THAT IS BILLING, UH, SETTING UP THE ACCOUNT, UH, THE METER AND WHAT'S CALLED THE DROP.

BUT BASICALLY THE DROP IS NOTHING MORE THAN THE LINE OF ELECTRICITY FROM THE METER TO THE HOUSE.

AND SO THE PURPOSE OF IT IS TO ACTUALLY PAY FOR THE ACCESS.

IT'S NOT SUPPOSED TO REALLY BEAR THE BURDEN OF ANY OF, OF THE OTHER COSTS.

AND I WILL POINT OUT THAT WHEN WE WERE CROSS-EXAMINING AUSTIN ENERGY WITNESS MURPHY AT THE HEARING, UH, HE ADMITTED THAT, I MEAN, THEIR EX THEIR ARGUMENT THAT, THAT FOR THE CUSTOMER COST, UH, WAS BECAUSE WE HAD ALL THESE TIER.

AND IF WE DIDN'T HAVE THOSE TIERS, MAYBE WE WOULDN'T HAVE TO.

SO, UH, THAT WAS ONE WITNESS'S CASEMENT, THE OTHER WITNESS'S TESTIMONY, UH, WHAT WENT TO THE FACT THAT, UH, I'M TRYING TO THINK OF HIS NAME.

MR. GABA, I THINK, UH, I THINK MR. GABA, I'M SORRY, THE ONE WHO DID THE COST OF SERVICE, SO I APOLOGIZE FOR MY LAPSE OF, OF MEMORY.

HE BASICALLY TESTIFIED THAT, HEY, A LOT OF THESE COSTS THAT HAVE BEEN CLASSIFIED AS A CUSTOMER COST FOR PURPOSES OF JACKING UP THE CUSTOMER CHARGE TO $25, HAD NOTHING TO DO, WERE NOT IDENTIFIED AS AN INDIVIDUAL CUSTOMER OCCURRENCE OR EVEN A FUNCTION OCCURRENCE, WHICH IS A BROADER CATEGORY OF COST.

IT WAS JUST SIMPLY OVERHEAD COST.

AND THEY TRIED TO FIGURE OUT THE BEST WAY TO DIVVY IT UP.

AND OVERHEAD COSTS ARE NOT REALLY A FUNCTION OF, OF CUSTOMER COST BECAUSE THEY DO NOT VARY WITH THE NUMBER OF CUSTOMERS.

SO, OKAY.

I APPRECIATE THAT.

I, UH, THE OTHER COMMISSIONERS MAY HAVE QUESTIONS FOR YOU.

ALL RIGHT.

I'M SATISFIED.

THANK YOU.

ALL RIGHT.

THANK YOU SO MUCH.

OKAY.

ANY OTHER QUESTIONS, UH, FOR LANETTA? ALL RIGHT.

THANK YOU SO MUCH.

WE REALLY APPRECIATE YOU BEING HERE.

UM, WELL, THANK YOU.

WELCOME TO SAY IF YOU'D LIKE.

OTHERWISE, JAMES, THANK YOU FOR COMING.

I'LL PROBABLY BE LEAVING .

THANK YOU, JAMES.

UM, COULD YOU JUST, JAMES BRAZIL, COULD YOU JUST BRIEFLY TELL US YOUR QUALIFICATIONS, UH, IN RATE MATTERS? RIGHT.

MY QUALIFICATIONS ARE A LITTLE BIT DIFFERENT THAN LANETTA IS.

UH, I DIDN'T GO THE PUBLIC SERVICE ROUTE SO MUCH AS I WENT THE ALJ, UM, AND STAFF ROUTE.

SO ADMINISTRATIVE LAW JUDGE, ADMINISTRATIVE LAW JUDGE.

I STARTED OFF, UH, IN 1989 AT THE, AT THE PUBLIC UTILITY COMMISSION IN THE HEARINGS DIVISION, BACK WHEN THERE WAS NO, SO, AND THE HEARINGS DIVISION WAS PART OF THE PUC OVER ON 7,800 SHO CREEK BOULEVARD.

UH, FROM THERE I WENT TO THE RAILROAD COMMISSION DOWNTOWN AND DID GAS UTILITY RATES.

UM, AND, UM, FROM THERE I WENT, UM, TO LAW FIRM.

AND THEN FROM THERE, WHAT TO THE ATTORNEY GENERAL'S OFFICE AND HANDLED A APPEALS OF PUC AND RAILROAD COMMISSION MATTERS.

AND FROM THERE, I WENT TO ANOTHER LAW FIRM AND THEN OUT ON MY OWN.

SO I'VE BEEN DOING THIS KIND OF WORK SINCE 1989, I GUESS THERE'S, OR SO I'M, I'M OKAY.

IT SEEMS LIKE IT DOESN'T SEEM LIKE THAT LONG, BUT THANK YOU.

MM-HMM.

, ANYTHING? OKAY, THANKS.

[01:00:01]

UM, UH, COMMISSIONER WHITES.

THANKS.

UM, I'M JUST WONDERING IF ANYBODY RECEIVED THE, UM, PRESENTATION THAT WAS SENT BY THE CONSUMER ADVOCATE? WE HAD RECEIVED QUITE A FEW PRESENTATIONS.

I DID GLANCE AT IT BEFORE I CAME HERE.

OKAY.

SO Y'ALL, Y'ALL DID RECEIVE THE ONE THAT WAS SENT BY CLARENCE TODAY? YES.

OKAY, GREAT.

UM, I, IF, IF WE HAVE A MOMENT, I THINK IT WOULD, UM, BE GOOD IF WE COULD CHECK OUT ONE SLIDE THERE.

UM, SLIDE SEVEN KIND OF COMPARES THE PERCENT CHAINS, UM, AND RATES AT DIFFERENT, UM, I GUESS TIER LEVELS, DIFFERENT USAGE LEVELS, WHICH IS KIND OF RELEVANT TO THIS.

IS THAT POSSIBLE TO BRING THAT UP SO WE CAN BOTH GET THAT TOGETHER? OR CAN I SHARE? WELL, CAN YOU, YOU'RE GONNA HAVE TO PROMOTE, ACTUALLY, IF YOU JUST, IF YOU DO IT TO ME, I I'VE GOT IT UP.

OKAY.

THANKS.

OKAY.

MY, MY SHARE BUTTON IS STILL GRAY OUT.

THERE IT IS.

ALL RIGHT.

SOMEBODY'S GOT IT UP.

THERE YOU GO.

OH, ALL RIGHT.

THERE YOU GO.

THANKS.

UM, MAYBE WE CAN SEE THAT A LITTLE BIGGER IS REALLY WHAT WE YEAH, I DON'T, I DON'T KNOW IF FOLKS THERE CAN SEE THAT.

IF, IF EVERYBODY CAN SEE IT THEN, THEN I'LL JUST MOVE FORWARD, BUT YEAH.

THANKS.

THAT'S, THAT'S HELPFUL.

SO, SO, YEAH, I JUST WANTED TO CALL EVERYBODY'S ATTENTION TO THIS.

I MEAN, THIS HAS BEEN PRETTY WIDELY REPORTED ON, BUT, YOU KNOW, I JUST THINK THAT, THAT WE SHOULD, YOU KNOW, HAVE A, A CLEAR UNDERSTANDING OF KIND OF WHAT'S BEING PROPOSED IN TERMS OF THE CHANGES TO THE TIER RATES, TIER RATES, AND, UM, YOU KNOW, THE, THE, THE PRETTY SIGNIFICANT BILL INCREASE THAT WOULD BE, UM, WOULD BE ON THOSE WHO ARE USING THE LEAST ENERGY, AND THAT, THAT IS, IS MADE POSSIBLE BY REDUCING RATES PRETTY SIGNIFICANTLY FOR THOSE WHO USE THE MOST ENERGY.

AND SO, UM, YOU KNOW, THIS TABLE HERE YOU CAN SEE ON THE, UH, RIGHT, IS THE AUSTIN ENERGY PROPOSED, UH, RATE DESIGN.

AND SO YOU SEE THAT PERCENT CHANGE THERE AND YOU SEE, YOU KNOW, ALMOST 47% FOR THOSE WHO ARE USING VERY LITTLE ENERGY.

UM, BUT EVEN, YOU KNOW, AT A UM, LEVEL, BUT I THINK PROBABLY A LOT OF, UM, KIND OF SMALLER APARTMENTS ARE AT THAT 6 25, YOU'RE, YOU'RE AT A 28% INCREASE.

AND EVEN FOR THOSE THAT ARE AT THE AVERAGE, UM, THAT 8 75 IS, IS NEAR TO THE AVERAGE RESIDENTIAL USAGE, WOULD BE GETTING THAT 14%, UM, INCREASE WITH THIS PROPOSAL, WHICH IS, YOU KNOW, CONSIDERED A, A PRETTY LARGE, UH, RATE INCREASE.

AND MEANWHILE, THOSE WHO, WHAT I WOULD DESCRIBE AS ENERGY HOGS USING, YOU KNOW, 2,700 PLUS, UH, KILOWATT HOURS A MONTH, PROBABLY HAVE MULTIPLE AIR CONDITIONERS, UH, PROBABLY HAVE MASSIVE HOUSES, UH, OR THE 20 PLUS PERCENT, UH, DECREASE OR THERE ON THEIR RATES.

UM, AND THEN YOU SEE HERE ON THE LINK WHAT THE INDEPENDENT CONSUMER ADVOCATE IS PROPOSING.

AND, UM, YOU KNOW, THEY ARE PROPOSING TO MAINTAIN THE, THE, THE KIND OF TIERED STRUCTURE THEY, YOU KNOW, HAVE TRIED TO PUT FORWARD KIND OF A COMPROMISE, UH, POSITION BETWEEN AUSTIN ENERGIES DESIRE TO MOVE TO THREE, UH, TIERS AND CURRENT FIVE TIERS, UH, AND, AND PUT FORWARD A FORWARD TIER PROPOSAL, UM, WHICH I THINK COULD BE REASONABLE, YOU KNOW, FROM WHAT I'VE HEARD THE ICA SAY, THEY WOULD BE HAPPY TO STAY WITH THE FIVE TIERS, BUT WE'RE SEEKING TO FIND A MIDDLE GROUND.

UM, SO YEAH, I JUST WANTED FOLKS TO SEE THIS, YOU KNOW, WHAT THE ICA, UH, IS ADVOCATING FOR.

AND, AND THE ICA BY THE WAY, IS, IS, UH, VERY

[01:05:01]

WELL QUALIFIED CONSUMER ADVOCATE WHO HAS THIS WORK AROUND THE COUNTRY AND WAS HIRED SPECIFICALLY TO REPRESENT THE RESIDENTIAL AND SMALL COMMERCIAL CUSTOMERS.

UM, AND THEY WERE NOT ABLE TO ATTEND.

RIGHT.

SO I JUST WANTED TO MAKE SURE THAT WE DID GET TO SEE THEIR, UM, YEP.

THEIR INFORMATION.

THANKS.

OKAY.

SO PAUL, JUST SO I'M CLEAR, THIS IS IN REFERENCE TO ONE OF THE THREE RESOLUTIONS SPECIFICALLY, CORRECT? OH, I THOUGHT WE WOULD DO OF THEM ONE AT A TIME.

AND YES, THIS IS THE ONE LABELED AUSTIN ENERGY PROPOSED RESIDENTIAL ELECTRIC RATE INCREASE.

UH, I MIGHT JUST ADD REAL QUICKLY THAT, UH, THERE IS PRECEDENT FOR THIS.

THE COMMISSION, UH, PASSED A SIMILAR RESOLUTION REGARDING TEXAS GAS SERVICE IN THE YEAR, I THINK 2020, UH, ADVOCATING FOR PROGRESSIVE RATE STRUCTURES.

ALL RIGHT.

SO THERE ARE THREE OPTIONS HERE.

WE CAN CONTINUE TO TALK ABOUT THIS.

UH, SOMEONE CAN MAKE A MOTION TO APPROVE OR OPEN DEBATE ON THIS RESOLUTION, OR THREE, WE CAN MOVE ON TO THE NEXT TOPIC.

WELL, I, I DO MOVE APPROVAL AND, RIGHT, SO IT'S UP TO THE COMMISSION.

ALL RIGHT.

UH, MOTION ON THE FLOOR, UH, AS TO PROVE THE RESOLUTION IN THE MEETING PACKET ON AUSTIN ENERGY PROPOSED RESIDENTIAL ELECTRIC RATE INCREASE.

UH, JUST SO WE ALL KNOW WHAT WE'RE TALKING ABOUT, I'M GONNA SHARE IT.

I BELIEVE THAT IS THIS ONE.

IS THAT RIGHT, PAUL? YES.

ALL RIGHT.

SO THE WAY THIS WORKS, IF ANYONE HAS ANY QUESTIONS FOR THE SPONSORS, UH, YOU'RE WELCOME TO ASK THEM IF ANYONE HAS ANY COMMENTS ON THE RESOLUTION, UH, WELCOME TO MAKE THOSE AS WELL.

IF ANYONE HAS ANY AMENDMENTS, UH, WELCOME TO PROPOSE THOSE AS WELL.

UH, OTHERWISE WE CAN VOTE CHAIR.

ALL RIGHT, COMMISSIONER DAVIS.

THANK YOU.

UM, I JUST HAVE A COMMENT, UM, ABOUT THE, YOU KNOW, IF WE'RE TALKING ABOUT EQUITY AND THE IMPACT THAT THE NEW RESIDENTIAL RATE CASE HAS ON LOWER INCOME RATE PAYERS, I THINK IT'S IMPORTANT TO ALSO REMEMBER THAT, UH, THERE IS A $15 A MONTH ADDITIONAL CHAR PASS THROUGH CHARGE COMING THROUGH STARTING IN NOVEMBER.

SO, UM, MY FEELING IS THAT THE, YOU KNOW, THE INCREASE IN THE CUSTOMER CHARGE IS QUITE A WHAMMY, AND IT'S BASICALLY GONNA BE DOUBLED WITH THE, UM, PASS THROUGH CHARGE THAT'S ALREADY COMING.

SO I JUST WANNA KEEP THAT IN, IN THE FOREFRONT AS WE THINK ABOUT THIS RESOLUTION.

THANK YOU, COMMISSIONER DAVIS.

UH, ONE THING I FORGOT TO POINT OUT.

WE DO HAVE, UH, REPRESENTATIVES FROM AUSTIN ENERGY IN THE ROOM, AS WELL AS ONLINE AS WELL, IN CASE ANYONE HAS QUESTIONS FROM THEM OR WOULD LIKE TO HEAR THEIR PERSPECTIVE ON SOME OF THE, THE ISSUES THAT WERE PRESENTED EARLIER.

UH, I HAVE SOME OR A COMMENT SLASH QUESTION AND, AND, UH, I THINK WILL, MIGHT NEED SOME AMENDMENTS.

UM, COULD THE SPONSORS, UH, ELABORATE OR NOT ELABORATE, BUT, UM, UH, I, WELL, I JUST THINK THE, THE BE IT RESOLVED WHERE IT SAYS, UH, IF ANY RATE INCREASES ARE ENACTED, THEY'D BE LEVY AS PROPORTIONAL INCREASES, IS KIND OF VAGUE AND, AND UNCLEAR TO ME.

AND SO MAYBE COULD Y'ALL, UH, MORE EXPLICITLY EX EXPLAIN THE, THE, THE HOPE YOU HAVE THERE AND, AND THEN MAYBE WE CAN FIGURE OUT SOME LANGUAGE THAT CLARIFIES IT? I'LL GAME, UM, SIMPLY IF RATE CASES ARE MULTIFACETED AND THERE'S A LOT OF MOVING PARTS TO THEM, AND NO ONE IN AUSTIN KNOWS, UH, PRECISELY WHAT THE INCREASE WILL BE, AND SOME COULD ARGUE EVEN IF THERE WILL BE ONE.

SO LET'S SAY THAT WE HAVE A, UM, WE HAVE A BASE CHARGE NOW OF $10, AND FOR EXAMPLE, UH, IT IS AGREED BY THE CITY COUNCIL THAT THEY'RE GOING TO RAISE RESIDENTIAL RATES BY 5%, THEN THE $10 FEE WOULD GO UP TO 10 50.

SIMILARLY, THE TIERS, IF IT'S 2.80 CENTS, THEN FOR THE FIRST TIER, THEN IT WOULD BE MULTIPLIED

[01:10:01]

BY 1.05.

SHANE, OR, OR IS THAT, IS THAT SUFFICIENT? A SUFFICIENT ANSWER? YEAH.

THANKS FOR CLARIFYING THAT.

UM, I'M JUST REREADING THE, THE, THAT SECTION, WE, THE RESOURCE MANAGEMENT COMMISSION HAS LIMITED PURVIEW.

WE CANNOT COMMENT ON WHAT AUSTIN'S ENERGY RATE INCREASE SHOULD BE.

WE CAN ONLY COMMENT ON THE RIGHT STRUCTURE ITSELF AND HOW THAT IS FAIR.

I GUESS MAYBE I'M STRUGGLING ON WHAT WE CAN, UNDERSTANDING WHAT WE CAN AND CANNOT DO AS THE RMC.

UM, BUT, BUT I, I DO THINK WE COULD PERHAPS MAKE THAT, UM, LAST CLAUSE A LITTLE BIT CLEARER OR, OR MAYBE, UM, I'M OPEN TO SUGGESTION.

UM, MAYBE SAYING SOMETHING ALONG THE LINES OF IF MAYBE, UM, YOU KNOW, THEY DON'T, THEY DON'T EXCEED, UM, THE, THE COSTS INCREASE, YOU KNOW, TO THE UTILITIES CURRENT MONTHLY BASE COSTS, UM, OR TO THE, TO THE UTILITIES COSTS.

UM, I THINK, UM, I'LL, I'LL, UH, PAUSE AND REFLECT FOR A SECOND.

I THINK COMMISSIONER DAVIS HAD ANOTHER QUESTION.

YES.

UM, I GUESS MY QUESTION IS, TO ME, THE, THIS RESOLUTION, UM, READS AS THOUGH THE STRONGER, UH, POINT THAT THE COMMISSION WANTS TO TAKE WITH THIS IS IN OPPOSITION TO THE, THE FLATTENING OF THE TIER STRUCTURES AS OPPOSED TO THE INCREASE IN THE CUSTOMER CHARGE.

AND I JUST WANNA ASK THE SPONSORS IF THAT WAS THE INTENT THAT, UM, THAT THE LANGUAGE OF THIS RESOLUTION AND THAT THE INTENT OF THE RESOLUTION IS TO BE, UM, YOU KNOW, MORE STRONGLY AGAINST THE FLATTENING OF THE TIERS AS OPPOSED TO THE CUSTOMER CHARGE.

IT SEEMS A LITTLE, YOU NOT VERY STRONG ON THE CUSTOMER CHARGE INCREASE.

I, I AM NICOLE, IT, DO YOU MIND IF I JUMP IN? PLEASE? YEAH.

SO I, I, I HEAR THAT THAT'S THE WAY THIS LANGUAGE IS COMING ACROSS, SO MAYBE WE SHOULD AMEND IT TO, UM, TO, TO, I THINK MAKE CLEAR WHAT THIS IS TRYING TO DO.

I THINK THE SECOND BE IT RESOLVE, UM, ADDRESSES BOTH, BUT, UH, IT DOES IT FROM A TECHNICAL STANDPOINT.

SO MAYBE WE SHOULD ADD SOME LIKE CLARIFYING LANGUAGE THERE TO, UM, YOU KNOW, EXPLAIN WHAT THE INTENT IS.

SO, UH, THERE, THERE'S NOT THAT, THAT CONFUSION.

CAUSE I, I, I THINK CERTAINLY I, I KNOW THAT PAULS INTENT, MY INTENT, YOU KNOW, IS, IS TO, UM, SIGNAL OPPOSITION FOR BOTH OF THOSE CHANGES.

UH, IF IT'S ANY CONSOLATION, THE ELECTRIC UTILITY COMMISSION DOES HAVE PURVIEW OVER HOW MUCH RATES GO UP AND THEY ARE ENGAGED.

UH, BUT I AM OPEN TO SUGGESTIONS FROM, UH, ANYONE AS TO HOW TO WORD THIS.

SPITTER.

IF I COULD JUST ASK A QUESTION REAL QUICK.

ARE WE ABLE TO ASSUME THAT THE MEMBERS OF CITY COUNCIL ARE RELATIVELY SMART INDIVIDUALS? BECAUSE I CAN READ THIS AND I UNDERSTAND WHAT WE'RE SAYING.

WE'RE BASICALLY TAKING A TWO PRONG THING THAT SAYS THE FLAT FEE IS HIGH AND WE DON'T LIKE THE NEW PROPOSED STRUCTURE.

I THINK THAT THEY CAN INTERPRET WHAT THAT IS, AND THAT'S REALLY WHAT THIS RESOLUTION IS ABOUT.

YES.

YEAH.

I THINK THOUGH IT DOESN'T, IT DOESN'T HAVE ANYTHING THAT SPECIFICALLY, UM, CALLS OUT.

MAYBE EVEN JUST AWARE AS WOULD HELP AWARE AS THAT ADDRESSES THE, THE FIXED FEE.

UM, WHEREAS

[01:15:01]

AUSTIN ENERGY'S CURRENT FEE ISN'T IN LINE WITH THE FEE AT OTHER, UH, CHECK MUNICIPAL UTILITIES AND THE PROPOSED FEE WOULD MAKE AUSTIN ENERGY'S FIXED FEE MUCH, MUCH HIGHER.

AND AN OUTLIER.

YES.

SOMETHING ALONG THOSE LINES.

YES.

I THINK THAT CASE WAS, WAS WELL MADE IN SOME OF THE PRESENTATION MATERIALS.

UM, THE, IT'S 150% INCREASE.

IT IS NOT THE, UM, DOESN'T REFLECT THE, THE ACTUAL COST TO SERVE, UM, YOU KNOW, SOME OF THOSE POINTS AND, AND IT'S OUT OF LINE WITH THE PEER GROUP OF MUNICIPAL UTILITIES.

UM, SO I THINK SOME OF THAT LANGUAGE AND, AND, YOU KNOW, AND MAYBE THE RESOLUTION CLAUSE, THE NOW THEREFORE BE IT RESOLVED, UM, WE, YOU KNOW, WE RECOMMEND KEEPING THE CUSTOMER CHARGE INCREASE AS LOW AS POSSIBLE.

SOMETHING AROUND THAT.

I'M, I DON'T HAVE THE GOOD LANGUAGE, BUT SOMETHING THAT MAKES THE, THE CLEAR POINT THAT THAT IS A MATERIAL, UM, PART OF THE RATE CASE THAT WE FEEL HAS THE POTENTIAL TO HARM CONSUMERS.

YEAH.

I STRONGLY SECOND THAT, AND I ABSOLUTELY AGREE THAT WE SHOULD INCLUDE SOMETHING A LITTLE MORE EXPLICIT IN THE IT RESOLVED CLAUSE.

UM, WE CAN I, YOU KNOW, WE CAN, UM, FIGURE THAT OUT OVER THE NEXT FEW MINUTES.

UM, UH, DO WE, UM, I CAN, OKAY.

UM, WE WANNA GET OUT OF, I'VE SAID THIS SEVERAL TIMES OVER MEETINGS.

WE WANNA LEAVE HERE BEFORE 10 TONIGHT.

UH, AND I, WE COULD EITHER WORDSMITH THIS NOW OR WE COULD LET KABA PRESENT HER VALUE OF SOLAR RESOLUTION WHILE SHANE AND CHARLOTTE, UH, WORDSMITH THEMSELVES.

UH, I'M OPEN TO EITHER ONE.

JUST, UH, DON'T WANNA STAY HERE THAT WITH, STAY HERE THAT LONG WITHOUT ACTION, WOULD YOU, I'M HAPPY TO WORK ON A, ON A PROPOSED AMENDMENT LANGUAGE.

OKAY.

WE MOVE TO THE NEXT ONE IF, OKAY.

SO IF IT'S RIGHT SOMETHING IN THE CHAT, ARE Y'ALL ABLE TO SAY THAT? I CAN'T SEE IT.

I THINK IT'S, DID YOU SEND IT JUST TO HOST? THAT MIGHT BE, NO, I SENT IT TO ALL ATTENDEES.

MAYBE YOU NEED TO SEND IT TO ALL PANELISTS.

OKAY.

I WILL TRY THAT.

SO I, OH, SORRY.

I DID THE SAME THING AGAIN, MY DOG.

YEAH, I CAN SEE IT NOW.

COOL.

UM, JUST PROCESS WISE, UH, AND THINKING OUT, MAYBE WE CAN, UM, PUT SOME DRAFTS OF ATTEMPTED WORDSMITHING INTO THE CHAT AND THEN, UM, I THINK IN GENERAL, WHEN WE'VE SORT OF WORDSMITH BEFORE THE CHAIR OR VICE I THE CHAIR OR THE, OR THE, UM, UH, THE AUTHORS CAN KIND OF PULL THAT TOGETHER AND THEN, UH, READ OUT A POTENTIAL DRAFT.

MAYBE THAT'S THE, UM, WE CAN, THAT'S THE PROCESS WE CAN USE RIGHT NOW AS WE PROCEED WITH THE OTHER, UH, RESOLUTION.

UM, OKAY.

THAT'S FINE WITH ME.

OKAY.

SO WHAT I'VE HEARD IS YOU WANNA TABLE THE, THE MOTION, REVISIT IT, YES.

LATER.

OKAY.

IF YOU WANNA DO THAT, THAT'S FINE.

I ALSO JUST TOOK A STAB AT, UM, A KIND OF EXPLANATORY CLAUSE THAT I'M PROPOSING WOULD GO AT THE END OF THE SECOND, BE IT RESOLVED.

ALL RIGHT.

YOU WANNA, DO YOU WANNA READ IT TO US? SURE.

SO, SO DOES THAT MEAN YOU HAVEN'T SEEN THE, THE, WHEREAS I'LL READ THE, WHEREAS LANGUAGE THAT I PROPOSED, SO WHEREAS AUSTIN ENERGY'S CURRENT $10 PER MONTH, FIXED FEE IS ON PAR WITH FIXED FEES AT OTHER TEXAS MUNICIPAL UTILITIES, AND AUSTIN ENERGY IS PROPOSED $25 PER MONTH FIXED FEE, FIXED FEE WOULD BE EXCESSIVE, BUT THAT'S JUST AN ADDITIONAL, WHEREAS, UM, AND THEN PROPOSE TO JUST ADD COMMA AFTER STRUCTURE

[01:20:01]

AT THE VERY END IN ORDER TO MAINTAIN A REASONABLE FIXED FEE AND A TIERED RATE STRUCTURE, TIERED RATE STRUCTURE THAT ENCOURAGES ENERGY CONSERVATION AND IT'S EQUITABLE.

I'M FINE WITH MOST OF IT.

UH, I JUST MAY BE MISUNDERSTOOD.

YOU IS, I, I GOT THE FIRST, WHEREAS IS THERE A SECOND WHEREAS THAT YOU'RE WORKING ON, OR DID I MISUNDERSTAND YOU? I WASN'T WORKING ON A SECOND.

WHEREAS, BUT LISA, I THINK PROPOSED A GOOD, UH, CHANGE INSTEAD OF EXCESSIVE, SAY WOOD FAR EXCEED, SIMILARLY SITUATED TEXAS MUNICIPAL UTILITY.

SO I THINK THAT'S MUCH BETTER.

THANK YOU.

I HAVE A COUPLE OTHER IDEAS, SO MAYBE WE CAN CONTINUE TO PUT THEM IN THE CHAT AND CONTINUE WITH THE OTHER, UH, RESOLUTION.

HOW DOES THAT SOUND TO FOLKS? THAT SOUNDS FINE WITH ME.

GOOD.

SO LET'S TABLE THAT ONE FOR THE MOMENT.

UH, TOSS IT BACK TO THE SPONSORS.

UH, WHICH ONE DO YOU WANNA HIT NEXT? KABA, DO YOU WANT TO GO? UH, SURE.

I DO NOT HAVE A PRESENTATION, SO IF WE CAN JUST, UM, BRING UP THE VALUE OF SOLAR RESOLUTION.

I, ALL RIGHT.

SO, UM, YOU KNOW, I'LL START BY SAYING THAT, UH, ALTHOUGH, YOU KNOW, PUBLIC CITIZENS, SIERRA CLUB, SOLAR UNITED NEIGHBORS, UM, YOU KNOW, CERTAINLY DON'T, DON'T AGREE WITH THE METHODOLOGY THAT, UM, AUSTIN ENERGY IS PUTTING FORWARD.

THIS RESOLUTION, UM, IS NOT INTENDED TO, UM, KIND OF DIG INTO THE METHODOLOGY AT THIS POINT.

AND IT DOES, UM, BASICALLY, UH, YOU KNOW, ASSUME THAT, THAT THE PROPOSED METHODOLOGY IS MOVING FORWARD.

HOWEVER, YOU KNOW, I THINK THAT, UM, THE FACT THAT THE RESOURCE MANAGEMENT COMMISSION WAS NOT ENGAGED, UH, IN THE DEVELOPMENT OF THAT METHODOLOGY IS, UM, YOU KNOW, IT, IT IS A PROBLEM.

AND, UM, YOU KNOW, SO, SO THAT IS ADDRESSED IN THIS RESOLUTION THAT IN GOING FORWARD, THERE WILL BE A PROCESS AND WE WILL BE PART OF THAT PROCESS, UM, TO, YOU KNOW, KIND OF REVISIT THE METHODOLOGY NEXT TIME AROUND.

SO, UM, YOU KNOW, I THINK THE METHODOLOGY IS SOMETHING THAT IS IMPORTANT.

IT'S ALSO SOMETHING WE CAN'T REALLY, UM, WE CAN'T DO IN A, IN A MEETING, IN A, YOU KNOW, HUMAN IN A MEETING.

IT, IT REALLY IS, UM, YOU KNOW, MORE COMPLEX THAN THAT.

SO, UM, THIS RESOLUTION IS INTENDED TO KIND OF, UM, MITIGATE SOME OF THE, I THINK, KEY ISSUES, UM, THAT, THAT, THAT I THINK CAN BE ADDRESSED EVEN IF, UH, THE NEW METHODOLOGY IS ADOPTED.

UM, SO I DON'T KNOW, I THINK Y'ALL CAN READ, SO I'M NOT GONNA READ THROUGH THIS ALL.

I'M JUST GOING TO, YOU KNOW, KIND OF GO THROUGH THE BULLETED POINTS HERE AT THE END, ONE THROUGH THREE.

UM, THE, THE VALUE OF SOLAR TARIFF IS CURRENTLY FULLY, UH, FUNDED THROUGH THE POWER SUPPLY ADJUSTMENT.

B, WHICH IS WHERE ALL OF AUSTIN ENERGY'S OTHER ENERGY, UH, SOURCES ARE ALSO, UH, FUNDED, UM, INCLUDING THEIR, THEIR POWER PURCHASE AGREEMENTS FOR OTHER, UH, RENEWABLE ENERGY, INCLUDING SOLAR FARMS. UM, THE PROPOSAL IS TO FUND PART OF THE VALUE OF SOLAR THROUGH THE ENERGY EFFICIENCY SERVICES FEE.

AND, UM, YOU KNOW, I THINK THERE, THERE ARE A COUPLE, UH, CONCERNS WITH THAT.

ONE IS THAT IT'S, IT'S TAKING MORE MONEY OUT OF A, YOU KNOW, A LIMITED POT OF MONEY, OF COURSE, THAT THAT FEE CAN BE RAISED, BUT, YOU KNOW, THAT JUST PUTS KIND OF A TARGET ON, ON THOSE FUNDS.

UM, WHEREAS AS WE SEE, THE PSA PRETTY MUCH GETS ADJUSTED AS NEEDED, UM, WHEN IT'S BEEN TO COUNCIL FOR THOSE ADJUSTMENTS.

UM, BUT THE OTHER THING IS THAT NOT ALL CUSTOMERS PAY THE ENERGY EFFICIENCY SERVICES FEE.

AND, AND PAUL IS GONNA ADDRESS THAT IN ANOTHER RESOLUTION, BUT, UM, THERE ARE ALREADY CUSTOMER CROSSES THAT DON'T PAY THE EES, AND I HAVE YET TO DREAM UP OR HEAR OF A SOLUTION FOR HOW YOU HAVE A VALUE OF SOLAR

[01:25:01]

TARIFF THAT IS OPEN TO ALL CUSTOMERS WHERE YOU RECOVER PART OF THE COST THROUGH A FEE THAT THOSE CUSTOMERS DON'T PAY IN, CUZ IT WOULD NOT BE RIGHT FOR THEM TO, TO TAKE MONEY FROM, FROM A, YOU KNOW, A PART THAT THEY DO NOT PAY INTO.

SO, UM, NUMBER ONE JUST ADDRESSES THAT BY CONTINUING THE CURRENT PRACTICE OF RECOVERING ALL THOSE COSTS THROUGH THE PSA.

UM, NUMBER, UH, TWO ADDRESSES, UH, VOLATILITY.

THE CURRENT PROPOSAL OR THE CURRENT VALUE OF SOLAR, UH, IS CALCULATED ANNUALLY, BUT IS THEN ACTUALLY, UH, ADMINISTERED WITH A THREE YEAR, UH, ROWING AVERAGE.

SO THERE'S THAT, THE, THE PURPOSE OF THAT WAS TO REDUCE VOLATILITY, WHICH IS HELPFUL FOR CUSTOMERS WHO ARE TRYING TO DECIDE WHETHER OR NOT TO INVEST IN, UM, THE NEW METHODOLOGY IS, IS, UM, I THINK HAS A LOT MORE POTENTIAL TO BE, TO BE MORE VOLATILE THAN THE CURRENT, UH, METHODOLOGY.

UH, THE CURRENT METHODOLOGY REALLY LOOKS AT SOLAR ON A, UM, KIND OF LIFETIME VALUE BASIS.

UM, YOU KNOW, LOOKING AT KIND OF THE 25 TO 30 YEAR LIFE OF, UH, SOLAR INVESTMENT.

AND, UM, AND THAT'S PART OF WHAT GOES INTO THE CALCULATION.

LIKE I SAID, IT'S COMPLICATED, SO I'M NOT GONNA GET INTO THE DETAILS, BUT THE, THE, THE PROPOSED METHODOLOGY IS REALLY PEGGED TO, UM, LOOKING AT THE PAST YEAR OF KIND OF , UM, ENERGY AND ANCILLARY SERVICE, UH, COST.

SO THAT MEANS THAT, YOU KNOW, IN SOME YEARS IT MIGHT BE HIGHER THAN THE OTHER METHODOLOGY.

IN OTHER YEARS IT MIGHT BE LOWER, IT REALLY COULD KIND OF BOUNCE AROUND.

AND ALSO AUSTIN ENERGY HAD PROPOSED TO DO AWAY WITH HAVING, UH, A ROLLING IN AVERAGE.

SO THIS WOULD JUST, YOU KNOW, WOULD BRING BACK THAT FEATURE OF A, OF A ROLL IN AVERAGE AND, AND MOVE IT TO FIVE YEARS SINCE THE METHODOLOGY IS LIKELY GONNA BE MORE VOLATILE.

AND THEN NUMBER THREE, UH, YOU KNOW, LIKE I SAID, KIND OF ADDRESSES, MAKING SURE THAT THERE IS A FULL KIND OF PUBLIC STAKEHOLDER PROCESS THAT, UM, INCLUDES OF COURSE, THE RMC, BUT ALSO, YOU KNOW, THOSE WHO ARE, YOU KNOW, INTERESTED OUT IN THE COMMUNITY INCLUDING, OR SOLAR, UM, COMPANIES AND SOLAR CUSTOMERS AND, AND, YOU KNOW, ANYBODY ELSE WHO, WHO WANTS TO ENGAGE IN THAT.

UM, YEAH.

SO, AND, AND THAT WOULD, YOU KNOW, AGAIN, NOT CHANGE ANYTHING FOR RIGHT NOW IN THIS MOMENT, WHAT'S, WHAT, WHAT WOULD BE ADOPTED, BUT WOULD BE FOR UPCOMING, UM, UPCOMING VALUE OF SOLAR CALCULATION FOR THE FOLLOWING RATE CASE.

UM, AND THEN YOU'LL SEE B THERE IS DEVELOP A STANDARD OFFER PROGRAM FOR COMMUNITY SOLAR, WHICH IS, UM, YOU KNOW, SOMETHING THAT, UH, I, I BELIEVE AUSTIN ENERGY IS, UM, YOU KNOW, ALREADY SIGNALED, UM, IN, IN, IN OTHER CONVERSATIONS THAT THEY'RE, THAT THEY'RE INTERESTED IN.

SO I'LL PAUSE THERE AND SEE IF FOLKS HAVE QUESTIONS, COMMENTS, OR CONCERNS ON THIS.

IF I COULD JUST, UH, CHIME ON.

UH, WELL, I'M IN, I'M SUPPORTIVE OF ALL OF THIS.

UH, THE THING THAT CONCERNS ME THE MOST IS THAT UNDER THE CURRENT PROPOSAL AND THE RATE STRUCTURE, UH, NEW RATE STRUCTURE, SOME CUSTOMERS WOULD BE EXEMPTED FROM PAYING FOR, UH, VALUE OF SOLAR.

UH, IF, IF I AM A AUSTIN ENERGY CUSTOMER, AND AUSTIN ENERGY CUSTOMER HAS A CONTRACT WITH A WIND POWER CUSTOMER, UH, OR A WIND POWER GENERATOR, I HAVE TO PAY IT AS WELL AS, UM, EVERYONE.

BUT, AND, AND HERE TOO FOR THE, UM, THE, UH, SOLAR ENERGY THAT'S, UH, PART OF VALUE OF SOLAR HAS BEEN PAID BY EVERYONE.

BUT IF THIS NEW RATE PASSES AS PROPOSED, IT WILL START TO EXEMPT SOME CUSTOMERS, AND THEN IT COULD LEAD TO FURTHER EXEMPTIONS DOWN THE LINE.

SO THAT'S THE THING THAT, UH, THE REASON I SUPPORT THIS, THE MOST QUESTION, UM, IS THE IDEA THAT, UM, ITEM OR PARAGRAPH THREE HERE WOULD BE SAYING, UM, LET'S NOT CHANGE THE METHODOLOGY FOR NOW.

EVERYTHING WOULD STAY THE SAME, HIRE SOMEBODY, AND THEN THE NEXT TIME, UM, THE METHODOLOGY IS VISITED WILL

[01:30:01]

HAVE BETTER INFORMATION VIA STAKEHOLDER MEETINGS AND, AND HAVING HIRED A CONSULTANT.

YEAH, BASICALLY AUSTIN ENERGY WOULD, WOULD BE ABLE TO MOVE FORWARD WITH THEIR PROPOSED METHODOLOGY IN THIS ROUND.

OKAY.

AND, UM, BUT, BUT GOING FORWARD, THEY NEED TO HIRE A QUALIFIED THIRD PARTY THAT HAS EXPERIENCE WITH THE VALUE OF SOLAR, SPECIFICALLY, WHICH THEIR CONSULTANT APPEARS TO NOT HAVE HAD ANY PREVIOUS EXPERIENCE WITH VALUE OF SOLAR.

THE, THE ONE THAT, THAT DID THE, I'M NOT SURE IF I WOULD SAY IT'S A VALUE OF SOLAR STUDY, BUT KIND OF DID A CRITIQUE OF THE VALUE OF SOLAR.

UM, SO THAT'S WHY THAT IS IN THERE, YOU KNOW, FIND SOMEBODY THAT, THAT HAS DONE THIS WORK BEFORE, WHICH AUSTIN ENERGY PREVIOUSLY HAD HAD A CONSULTANT EXPERIENCE.

AND SO WHEN WOULD THEY REVISIT THE METHODOLOGY? SO LET'S JUST SAY HYPOTHETICALLY THEY DO SAY, OKAY, WE SHOULD GO HIRE SOMEBODY TO LOOK AT THIS.

DO YOU HAVE A SENSE OF WHEN THEY WOULD REVISIT THE, THE METHODOLOGY? WELL, THIS IS UP FOR REVIEW, UH, ALONG WITH THE BASE RATES EVERY FIVE YEARS.

OKAY.

OH, OKAY.

SO IT'S A WHILE.

ALL RIGHT.

YEAH, SO I MEAN, OBVIOUSLY THE WORK WOULD NEED TO HAPPEN IN ADVANCE BECAUSE YEAH, YOU KNOW, BACK EVERYTHING OUT.

SO, YOU KNOW, HOPEFULLY IT WOULD START IN, YOU KNOW, WITHIN THE NEXT COUPLE OF YEARS, THEY WOULD START THAT PIECE.

I WOULD HOPE THAT, YOU KNOW, B COULD MOVE FORWARD QUICKER BECAUSE THE VALUE OF SOLAR WOULD BE SET AND WE COULD MOVE FORWARD WITH THAT PIECE.

BUT, UM, YEAH, I DON'T KNOW WHAT THE TIME, EXACT TIMING OF A WOULD NEED TO BE.

OKAY.

ANY OTHER QUESTIONS, COMMENTS, CONCERNS ABOUT THIS ONE? ALL RIGHT.

I'M, I'M GONNA GO AHEAD AND, AND MOVE APPROVAL ON THIS, UH, RESOLUTION ADDRESSING THE VALUE OF SOLAR CARE.

ALL RIGHT.

THERE'S A MOTION ON THE TABLE TO APPROVE THE RESOLUTION MARKED AS THREE OF THREE RESOLUTION ON VALUE OF SOLAR TARIFF, WHICH IS A SLATE ON THE SCREEN RIGHT NOW THAT WILL OPEN DEBATE ON THIS PARTICULAR RESOLUTION.

UH, QUESTIONS, COMMENTS, AMENDMENTS, ALTERNATELY, WE CAN MOVE TO VOTE.

ALL RIGHT.

UH, I'M, I MOVE TO VOTE IF THERE'S NO CONCERNS OR COMMENTS LAST CALL THEN, BEFORE WE DO THAT.

OKAY.

SO THE MOTION ON THE TABLE IS PROVE THE RESOLUTION HAS WRITTEN, UH, MARKED RESOLUTION ON VALUE OF SOLAR TARIFF.

UH, MOTION TO APPROVE WHAT'S MADE BY COMMISSIONER WHITE.

WE WILL NOW TAKE A VOTE.

I'M JUST GONNA CALL YOUR NAMES.

PLEASE SAY YAY, NAY, YES OR NO? UH, COMMISSIONER BLACKBURN ON THIS ITEM VOTES NO.

COMMISSIONER WHITE.

AYE.

THAT'S I COMMISSIONER DAVIS? AYE.

THAT'S AYE.

COMMISSIONER ANN GO IS NOT HERE.

COMMISSIONER JOHNSON.

VOTE IN FAVOR.

IT WAS A YES.

COMMISSIONER ROBBINS? YES, THAT'S A YES.

COMMISSIONER STONE? YES.

COMMISSIONER STONE VOTES? YES.

COMMISSIONER HARMON IS NOT HERE.

COMMISSIONER BRENNAN IS NOT HERE.

COMMISSIONER SHARIA? YES, IT'S, YES.

UH, THAT RESOLUTION PASSES ON A SIX TO ONE ZERO VOTE.

ALL RIGHT.

CAN, UH, MR. CHECK, CAN WE PLEASE GO BACK TO THE, UH, REWORDING OF THE FIRST MOTION? YOU GUYS READY TO DO THAT? ? UH, ON THAT FIRST, THE, THE FIRST RESOLUTION TO BE CLEAR, HAVE YOU GUYS WORKED OUT WHAT YOU WANTED TO WORK OUT? UH, I THINK POTENTIALLY SHOULD BE, UH, TRY GIVE IT A GO.

UH, I'M ASKING THAT TO THE AUTHORS.

.

UH, W WELL, I I'M NOT UNDERSTANDING YOU, UH, COMMISSIONER JOHNSON, I,

[01:35:01]

I'M READY TO HEAR THE PROPOSED REWARDING OR AMENDMENTS AND I I WAS EXPECTING THAT YOU OR, UH, COMMISSIONERS DAVIS OR CH MIGHT HAVE THEM.

YEAH, I, SO JUST TO CLARIFY, I THINK, I THINK THE MISUNDERSTANDING HERE IS THAT, UH, WE'VE ACTUALLY BEEN USING THE CHAT FUNCTION OF THE, JUST THE, THE CISCO WEBINAR SOFTWARE, UH, TO PUT THEM UP.

SO I THINK YOU JUST HADN'T SEEN THEM.

I HAVE NOT SEEN THEM.

YEAH.

WE WERE DISCUSSING CHAT.

SO I THINK WE CAN POTENTIALLY, UH, WHY DON'T WE GO AHEAD AND, AND, UM, TALK ABOUT ADOPTING THE WAREHOUSE STATEMENT AND THEN CONSIDER WHAT OUR, OUR OPTIONS OR DRAFTS FOR THE, UM, UM, BE IT RESOLVE CLO UH, CLAUSE.

GREAT.

COULD YOU READ THEM INTO THE RECORD? OKAY.

SO HERE'S HOW THIS IS GONNA WORK.

UH, IF YOU WANT TO ADD A, WHEREAS STATEMENT IS WHAT I'M HEARING, UH, SOMEONE WILL NEED TO MAKE A MOTION TO AMEND THIS RESOLUTION.

UH, AND THEN YOU WILL READ OUT WHAT YOUR AMENDMENT SHOULD, OR YOU ARE PROPOSING YOUR AMENDMENT TO BE.

I BELIEVE WE ARE ON THIS RESOLUTION.

PAUL, CAN YOU CONFIRM THE ONE I'VE GOT ON THE SCREEN? YES.

YES.

SO ON THE, WHEREAS, UH, I'M, I'M PUTTING WHAT I THINK Y'ALL ARE WANTING IN THE CHAT, UM, CAN YOU LET ME KNOW IF THAT'S YEAH, WE, I, I CAN SEE THE CHAT ON MY COMPUTER, BUT WE CANNOT DISPLAY IT ON THE SCREEN, SO YOU ARE GONNA HAVE TO READ IT OUT.

YEAH, I JUST WANTED TO MAKE SURE THAT THOSE WHO HAD BEEN WEIGHING IN VIA CHAT THAT THAT WAS WHAT THEY WERE LOOKING FOR BEFORE I, YEAH.

OKAY.

COOL.

UM, I CAN GO AHEAD AND MAKE A MOTION AND LEAVE THIS TO THE RECORD.

UM, SO MAKING A MOTION TO ADD THE FOLLOWING, UM, WHEREAS, UH, I GUESS AT THE BOTTOM, SO, UM, AFTER THE LAST, WHEREAS YOU WOULD ADD AN IN AND THEN THIS LANGUAGE, WHEREAS AUSTIN ENERGY'S CURRENT $10 PER MONTH, FIXED FEE IS ON PAR WITH FIXED FEES AT OTHER TEXAS MUNICIPAL UTILITIES.

AND AUSTIN ENERGY'S PROPOSED $25 PER MONTH FIXED FEE WOULD FAR EXCEED SIMILARLY SITUATED EXCESS MUNICIPAL UTILITIES.

ALL RIGHT, SO THERE'S A MOTION ON THE TABLE TO AMEND THE RESOLUTION TO THAT EFFECT.

UH, DOES ANYONE HAVE ANY QUESTIONS, COMMENTS, DISCUSSION ON THAT PROPOSAL? I WOULD INDULGE ME AND READ IT ONE MORE TIME, PLEASE.

YEAH, I'LL, I'LL READ FOR YOU.

WHEREAS AUSTIN ENERGY'S CURRENT $10 PER MONTH, FIXED FEE IS ON PAR WITH FIXED FEES AT OTHER TEXAS MUNICIPAL UTILITIES.

AND AUSTIN ENERGY'S PROPOSED $25 PER MONTH.

FIXED FEE WOULD FAR EXCEED SIMILARLY SITUATED TEXAS MUNICIPAL UTILITIES.

SEMICOLONS FINE WITH ME.

ALL RIGHT.

ANY OTHER QUESTIONS OR COMMENTS? ALL RIGHT.

REMINDER AMENDMENTS ARE ADOPTED BY MAJORITY, WHICH IN THIS CASE IS FOUR.

SO IF YOU'RE IN FAVOR, PLEASE, UH, RAISE YOUR HAND.

1, 2, 3, 4.

I, UH, ALRIGHT, THAT PASSES.

UM, ALRIGHT, SO THAT LANGUAGE IS ADDED TO THE PROPOSED RESOLUTION.

UH, ARE THERE OTHER AMENDMENTS ON THIS? YEAH, CHAR AND I PUT IN THE CHAT, UM, UH, SOME EDITS TO THE, NOT THEREFORE BE IT RESOLVE CLAUSE.

UM, AND SHE SENT ME A DIRECT MESSAGE THAT SHE SUPPORTS THE EDITS THAT I SENT.

SO, UM, AS ASSUMING, UH, COMMISSIONER DAVIS IS ALL RIGHT WITH IT, UH, MAYBE WE CAN JUST GO AHEAD AND READ, UH, THAT, UH, THE LAST MESSAGE FROM ME THAT STARTS WITH NOW, THEREFORE BE IT RESOLVED, UH, OR I CAN GO AHEAD AND READ IT, IF THAT'S HELPFUL.

GO AHEAD AND READ IT.

THANKS.

UH, SO, UH, NOW THEREFORE BE IT RESOLVED THAT THE RESOURCE MANAGEMENT COMMISSION OF THE CITY OF AUSTIN, UH, ADVISES CITY COUNCIL TO RETAIN AUSTIN ENERGY'S CURRENT PROGRESSIVE RATE STRUCTURE AND AVOID ANY SIGNIFICANT INCREASE IN THE BASE RATE.

UH, AND THEN THAT THE ADDED LANG OR THE EDIT OR ADDED LANGUAGES, THE PART THAT SAYS AND AVOID ANY SIGNIFICANT INCREASE IN THE BASE RATE.

[01:40:01]

YOU MEAN FIXED FEE? SORRY, YEAH, THE FIXED FEE AND THAT, THAT'S WHERE WE, WE NEED TO WORD SMITH AND MAKE SURE THERE ARE EVERYTHING'S CORRECT.

CONSISTENT.

UH, YEAH.

SO, UH, YEAH, THE FIXED FEE.

OKAY.

UH, IT WOULD HELP IF YOU WOULD JUST PUT AS THE LATEST MESSAGE IN THIS CHAT EXACTLY WHAT YOU ARE PROPOSING SO THAT WE ARE ALL CLEAR AND I WILL READ IT OUT.

COOL.

ANYONE? I JUST SENT, UH, SORRY.

GOTCHA.

SENT IT UP FIRST TO A, IN A PRIVATE MESSAGE ON ACCIDENT.

ALL RIGHT.

SO THERE IS A MOTION ON THE TABLE TO AMEND THIS RESOLUTION.

UH, IS WHAT YOU JUST SENT, THIS IS MEANT TO REPLACE THE SECOND TO LAST PARAGRAPH, IS THAT CORRECT? THAT'S CORRECT.

ALL RIGHT.

SO GO AHEAD.

AND I WAS JUST SAYING THAT TO, TO MAKE IT AS CLEAR AS POSSIBLE WHAT FOR WRITING IT, THE EDITED PART I PUT IN BRACKETS.

ALL RIGHT.

SO BASICALLY YOUR MOTION IS JUST TO ADD THE LANGUAGE THAT IS IN BRACKETS, RIGHT? YEAH, THAT'S CORRECT.

OKAY.

SO THERE IS A MOTION ON THE TABLE TO ADD IN BRACKETS, UH, AN ADDITIONAL CLAUSE AT THE END OF THE SECOND TO LAST PARAGRAPH.

UH, AFTER PROGRESSIVE RATE STRUCTURE, THERE IS, UH, THE MOTION IS TO ADD AND AVOID ANY SIGNIFICANT INCREASE IN THE FIXED FEE.

IS EVERYONE CLEAR ON THAT? I'M CLEAR AND FINE WITH IT.

JUST TO BE, JUST TO BE CRYSTAL CLEAR, WE WOULDN'T ACTUALLY BE PUTTING THE BRACKETS IN, RIGHT? UH, YES, I GOT THAT.

OH, COOL.

AND MAYBE I'M NITPICKING IS FIXED FEE CORRECT OR, UH, IS THAT THE CORRECT LANGUAGE? OKAY, GREAT.

ALL RIGHT.

SO ON THAT PROPOSED AMENDMENT TO THE RESOLUTION, UM, COULD I, COULD YOU MAYBE CALL IT FIXED MONTHLY FEE? WOULD THAT MAKE IT EVEN CLEARER THAT THE CUSTOMER CHARGE? YEAH.

YEAH.

WHAT IS THE FORMAL NAME OF OF IT? I'M JUST FORGETTING OFF THE TOP OF MY HEAD.

CUSTOMER CHARGE.

YEAH.

AND LET'S DO THAT.

AND I, I THINK IF WE DO THAT, UM, WE SHOULD MAKE THAT CONSISTENT WITH THE WHEREAS CLAUSE THAT WE JUST AMENDED AND APPROVED.

CAN WE DO THAT CHAIR? UH, BECAUSE THAT CLAUSE SPEAKS GENERAL.

YEAH.

SO YOU, I'LL JUST ADMINISTRATIVELY DO THIS.

YOU WANNA CHANGE FIXED FEET TO CUSTOMER CHARGE IN BOTH OF THOSE, CORRECT? YEAH.

SO IT'LL SAY MONTH, MONTH PER MONTH CUSTOMER CHARGE.

ALL RIGHT.

UH, WE'LL MAKE BOTH THOSE EDITS IN, INCLUDING IN THE ONE THAT WAS JUST ADOPTED.

UM, OKAY.

SO I BELIEVE THE MOTION ON THE TABLE IS TO ADD THE FOLLOWING LANGUAGE TO THE END OF THE SECOND LAST PARAGRAPH AND AVOID ANY SIGNIFICANT INCREASE IN THE CUSTOMER CHARGE.

DO I HAVE THAT CORRECT, COMMISSIONER JOHNSON? YES, THAT'S CORRECT.

ALL RIGHT.

ANY FURTHER DISCUSSION ON THAT? ALL RIGHT.

IF YOU ARE IN FAVOR OF THAT AMENDMENT, PLEASE RAISE YOUR HAND.

1, 2, 3, 4.

THAT PASSES.

ALL RIGHT.

ANY FURTHER AMENDMENTS TO THIS? THIS ONE? IF A QUESTION TO THE, THE SPONSORS IS, WITH THESE CHANGES, DO YOU STILL FEEL THAT THE LAST RESOLUTION CLAUSE IS NEEDED? PERSONALLY, I DO, BUT, UM, IT'S NOT JUST UP TO ME.

I, I THINK IT'S NEEDED, UH, BECAUSE IT GIVES OUR SUGGESTIONS ON, UH, THE PREFERRED WAY TO, UH, CREATE A FAIR INCREASE.

YEAH.

AND THAT ALIGNS WITH KIND OF WHAT THE CONSUMER ADVOCATE HAS BEEN, UH, PUTTING FORWARD AS WELL.

[01:45:09]

ALL RIGHT.

FURTHER QUESTIONS OR COMMENTS? ALL RIGHT.

WE WILL MOVE TO VOTE ON THIS MOTION.

UH, THE MOTION ON THE TABLE IS TO ADOPT THE PROPOSED RESOLUTION TITLED AUSTIN ENERGY, PROPOSED RESIDENTIAL ELECTRIC RATE INCREASE, UH, WITH THE TWO AMENDMENTS AS ADOPTED.

UH, AGAIN, WE WILL ROLL CALL, VOTE.

PLEASE LET ME KNOW IF YOU ARE IN FAVOR OF THAT, OF THAT MOTION OR NOT.

UH, COMMISSIONER BLACKBURN VOTES? NO.

COMMISSIONER WHITE.

AYE.

LET'S SEE.

AYE.

COMMISSIONER DAVIS? YES.

VOTE'S YES.

AND GO ABSENT.

JOHNSON? YES, THAT'S YES.

COMMISSIONER ROBBINS? YES, IT'S JUST COMMISSIONER STONE.

YES, IT'S, YES.

COMMISSIONER HARMON IS ABSENT.

COMMISSIONER BREEN.

BRENNAN NOT HERE.

COMMISSIONER SHARIA? YES.

CAN YOU SAY THAT AGAIN? YES.

THANK YOU.

UH, THAT RESOLUTION PASSES ON A SIX TO ONE TO ZERO VOTES.

UH, I BELIEVE WE HAVE ONE MORE.

WHO'S UP? I'M, UH, UH, THIS LAST RESOLUTION, UH, SORRY, IS LABELED AUSTIN ENERGY PROPOSED REDUCTION IN ENERGY EFFICIENCY SERVICE FEES.

UM, AS EVERYONE HERE PRETTY MUCH KNOWS, UH, THE ENERGY EFFICIENCY PROGRAMS ARE FUNDED THROUGH THE RIDER, UH, OF THE COMMUNITY BENEFITS CHARGE, UH, AND THE, IF YOU LIVE IN THE CITY LIMITS OF AUSTIN, THERE ARE THREE THINGS INCLUDED IN THAT.

THE, UH, ENERGY EFFICIENCY SERVICES, FEE, STREET LIGHTING, AND THE CUSTOMER ASSISTANCE PROGRAM.

IN THE RATE CASE, AUSTIN ENERGY HAS GRANTED, HAS CREATED A NEW RATE CLASS FOR, FOR, UH, SOME OF THE LARGER INDUSTRIAL CUSTOMERS.

PERSONALLY, I DON'T HAVE A PROBLEM WITH THE RIGHT CLASS, UH, BUT I DO HAVE A PROBLEM WITH THAT RIGHT CLASS BEING, BEING EXEMPTED FROM ENERGY EFFICIENCY SERVICE FEES.

UH, A FEW OF THE LARGER COMMERCIAL CUSTOMERS ARE ALREADY EXEMPTED FROM EES FEES, AND THIS IS JUST A FURTHER EROSION, UH, OF THAT.

AND ALTHOUGH THIS PARTICULAR EXEMPTION WOULD NOT BE FATAL TO THE ENERGY EFFICIENCY PROGRAMS, UH, I REALLY DON'T WANNA SEE ANY FURTHER, UH, LOSS.

SO I'M SUGGESTING THIS RESOLUTION, UH, THAT WE CONTINUE TO, UM, THEREFORE BE IT RESOLVED THAT THE COMMISSION, UH, ADVISE CITY COUNCIL THAT IF THE NEW RATE CLASS IS CREATED, CUSTOMERS IN THIS NEW RATE CLASS SHOULD BE CHARGED THE ENERGY EFFICIENCY SERVICES FEE.

I MOVE THAT THIS BE, UH, ACCEPTED AND I'M, UH, TRUSTING THAT MY FELLOW COMMISSIONERS WILL TRY TO MAKE IT EVEN BETTER.

ALL RIGHT, SO MOTION ON THE TABLE TO, UH, ADOPT THE PROPOSED RESOLUTION ON AUSTIN ENERGY, PROPOSED REDUCTION IN ENERGY EFFICIENCY SERVICE FEES.

SO WE WILL OPEN DEBATE DISCUSSION ON THAT TOPIC.

QUESTIONS? I HAVE A QUESTION.

UM, PAUL, MAYBE YOU CAN ANSWER THIS.

UM, IS THERE, WHAT IS THE JUSTIFICATION OR ALSO INTRODUCES THINKING

[01:50:01]

BEHIND, UM, REMOVING THIS CLASS FROM PAYING THAT SORT OF SERVICE FEE? WELL, UM, THERE'S SOMEONE WHO COULD ANSWER THAT.

I, OF COURSE, I'D BE HAPPY TO SPEAK ON THEIR BEHALF, BUT I DON'T KNOW, WOULD WE GOT, WE GOT SOMEBODY FROM AUSTIN ENERGY.

APPRECIATE IT.

FULLY APPRECIATED.

GOOD EVENING.

TAMMY COOPER WITH AUSTIN ENERGY.

UM, THAT PROPOSAL IS DESIGNED TO RECOGNIZE THAT A LOT OF THESE LARGE CUSTOMERS PROVIDE ENERGY EFFICIENCY PROGRAMS THEMSELVES AND ACTUALLY SPEND, UH, A, A SUBSTANTIAL AMOUNT OF MONEY ON ENERGY EFFICIENCY.

IT'S IN THEIR BEST BUSINESS INTEREST TO DO SO.

AND I THINK WHAT'S IMPORTANT TO REMEMBER ABOUT THIS PROPOSAL IS THAT THEY WILL NOT PAY THE ENERGY EFFICIENCY SERVICES FEE, BUT THEY WILL ALSO NOT GET ANY BENEFITS FROM THE PROGRAM.

SO, MEANING IT'S NOT, IT'S NOT THAT THEY'RE GONNA NOT PAY AND THEN REAP A BUNCH OF, OF ENERGY EFFICIENCY PROGRAM BENEFITS.

UH, THEY WILL NOT RECEIVE THEM.

THEY WILL BE COMPLETELY, UH, ON THEIR OWN TO MAKE THESE ENERGY EFFICIENCY IMPROVEMENTS, BUT WE BELIEVE IN OUR CONVERSATIONS WITH THEM THAT THEY WILL ACTUALLY DO MUCH MORE ENERGY EFFICIENCY THEMSELVES THAN WE COULD PROVIDE TO THEM.

UM, COULD I RESPOND, UH, OH, HOLD ON.

BEFORE WE RESPOND.

ANY OTHER QUESTIONS FOR, FOR, FOR TAMMY ON THIS PARTICULAR TOPIC? LISA, AND YOU IN PARTICULAR? UH, I MEAN, I GUESS I'M WONDERING IF THE IDEA IS THAT MAYBE IT'S NOT, BUT, UM, IS THE IDEA THAT THEY WOULD TAKE, YOU KNOW, ANY MONEY THAT THEY DIDN'T USE TOWARDS A FEE AND, AND YOU ARE ASSUMING THAT THEY WOULD PUT IT TOWARDS THEIR OWN ENERGY EFFICIENCY PROGRAM, OR IS THAT NOT THE, THE THINKING BEHIND IT? WELL, CERTAINLY, UM, YOU KNOW, THAT'S, THAT'S SAVINGS THAT THEY WOULD SEE IS EXPECTED TO BE SPENT IN ENERGY EFFICIENCY, AND THERE WAS EVIDENCE PRESENTED AT THE HEARING, UH, THAT DEMONSTRATED THAT THOSE CUSTOMERS DO HAVE, UH, A LOT OF INVESTMENTS AND MAKE A LOT OF INVESTMENTS IN ENERGY EFFICIENCY.

AND I BELIEVE ONE OF THE PARTICIPANTS INDICATED THAT THEY HAVE SEVERAL PATENTS, UH, THAT THEIR COMPANY OWNS RELATED TO ENERGY EFFICIENCY, AND THAT THAT'S HOW THEY STAY COMPETITIVE, IS TO KEEP THEIR COSTS DOWN BY INVESTING IN SOPHISTICATED ENERGY EFFICIENCY PROGRAMS. OKAY, THANK YOU.

ANY OTHER QUESTIONS WHILE WE GOT TAMMY UP HERE? I'LL ASK, TAMMY, COULD YOU SPEAK TO THE, THE ASSERTION IN, IN THE RESOLUTION IS THAT THE CUSTOMERS IN THIS RATE CLASS WILL BENEFIT, UM, FROM AUSTIN ENERGY'S EFFICIENCY AND SOLAR PRO PROGRAMS BECAUSE OF REDUCTION IN CAPACITY, POWER PURCHASES, REGULATORY COSTS.

YOU MENTIONED EARLIER THAT THEY WOULD NOT BENEFIT FROM, UH, THE EFFICIENCY PROGRAMS, BUT INDIRECTLY ARE, ARE THEY BENEFITING, UH, DUE TO, UM, THESE, THESE THINGS THAT ARE OUTLINED HERE IN THIS RESOLUTION? I, I THINK, YOU KNOW, GENERALLY SPEAKING, UM, THERE'S ALWAYS A BENEFIT TO CUSTOMERS BECAUSE OF DIFFERENT REDUCTIONS IN CAPACITY AND PURCHASES.

BUT I THINK THEIR, OH, SORRY.

I, I THINK THEIR ARGUMENT BACK WOULD BE THAT, UM, THE AUSTIN ENERGY SYSTEM IS CURRENTLY, UH, BENEFITING FROM, YOU KNOW, PEAK SHAVING LOAD REDUCTION THAT THEY'RE ALREADY CONTRIBUTING.

SO I THINK THEY BELIEVE THEN THAT THAT, UM, AND, YOU KNOW, AND AUSTIN ENERGY SUPPORTS THIS, THAT THERE WILL BE, YOU KNOW, ADDITIONAL REDUCTIONS THAT WILL BENEFIT ALL CUSTOMERS.

SO I, I THINK THAT, UM, YOU KNOW, THAT THAT IS PERHAPS A GENERALIZATION, BUT, BUT IT'S A TWO-WAY STREET.

THANK YOU.

ALL RIGHT.

ANY OTHER QUESTIONS FOR TAMMY WHILE WE'VE GOT HER UP HERE? ALL RIGHT, THANK YOU.

YES, I DO HAVE A QUESTION.

OH, JUST KIDDING.

SORRY.

UH, TAMMY, I'M JUST WONDERING, UM, DO, DO YOU, UH, REMEMBER OR HAVE KNOWLEDGE OF THE N X P, UH, ENERGY EFFICIENCY RCA, THAT, THAT WAS BROUGHT TO THIS COMMISSION A FEW YEARS BACK? NO, I'M NOT, I'M NOT FAMILIAR WITH THAT.

OKAY.

THANKS.

OKAY.

THANK YOU.

TAMMY.

[01:55:04]

I'LL RESPOND.

UH, I CAN RECALL, UM, SEEING A STUDY THAT DISCUSSED THE INVESTMENT DECISIONS OF LARGE BUSINESSES.

AND THE CONCLUSION WAS THAT THEY CREAM SKIM THAT THEY TAKE ONLY AS A GENERAL RULE, ONLY INVESTMENTS THAT ARE GONNA BE, SAY, UNDER A YEAR.

AND THAT WITH REBATES, YOU BASICALLY EXTENDED THE, UH, INVESTMENT DECISION SO THAT THEY'RE GOING TO MAKE MORE SUBSTANTIAL INVESTMENTS IN ENERGY EFFICIENCY.

UH, AND SO YES, IT'S TRUE THAT SOME PEOP SOME, UH, BUSINESSES WILL OUT OF SELF-INTEREST, UH, CONSERVE, BUT IT IS MORE LIKELY ON A BROAD BASIS FOR INVESTMENT DECISIONS TO BE ENHANCED AND DRIVEN BY, UH, UTILITY PROGRAMS. UM, THERE'S A WHOLE PHILOSOPHICAL EXCHANGE ABOUT WHO BENEFITS, UH, FREE RIDERS OR ARE THEY FREE DRIVERS.

UH, AND WHAT I WOULD, IN, IN MY OWN PHILOSOPHICAL OPINION ON THIS, UH, THE, UM, THE COMPANIES THAT DO NOT INVEST IN ENERGY EFFICIENCY THAT ARE EXEMPTED FROM IT, UH, ARE BASICALLY GETTING A FREE SERVICE.

UH, I FOR EXAMPLE, PAY FOR PAY THE ENERGY EFFICIENCY FEE, AND I AM HELPING TO ELIMINATE PEAK DEMAND ON THE SYSTEM.

UH, I AM HELPING TO ELIMINATE THE HIGHEST PRICE FUELS IF YOU WANT TO GET INTO EXTENDED BENEFITS.

I AM FUNDING, UH, POLLUTION REDUCTION, AND THESE LARGER BUSINESSES THAT ARE BEING EXEMPTED ARE GETTING A FREE SERVICE FROM THE PEOPLE THAT PAY FOR IT.

SO I WOULD ARGUE THAT, UH, WE NEED TO MAINTAIN, IF YOU WILL, THE ENERGY EFFICIENCY SERVICE UTILITY.

UH, WE ARE NOT AN ENERGY UTILITY.

WE'RE, UH, AN EFFICIENCY UTILITY, AND THAT EXEMPTING CUSTOMERS WILL DETER OUR ABILITY TO DO THAT.

AGAIN, THIS IS ONE CUSTOMER, BUT IT COULD QUICKLY ESCALATE FURTHER QUESTIONS, COMMENTS, PROPOSED AMENDMENTS TO THIS SOLUTION.

I'VE ACTUALLY THOUGHT OF SOME FOLLOW UP QUESTIONS THAT MAY OR MAY NOT BE TO THE AUSTIN ENERGY.

UM, SO, UH, AND, AND SOME OF THIS IS MY OWN CURRENT IGNORANCE OF THE CONTEXT OF THIS, UM, BUT HAVE, CAN YOU TELL US HOW MANY COMMERCIAL CUSTOMERS YOU EXPECT TO BELONG TO THIS NEW OR BE, UH, PUT INTO THIS NEW RATE CLASS? AND HOW DOES THAT AFFECT THE, THE MONEY, UH, GARNERED FROM THE, FROM CHARGING THIS FEE? IS THAT GOING TO LOOK LIKE OR RESULT IN A DECREASE IN FUNDS TO THAT BUDGET? YOU KNOW, JUST SUPERFICIALLY, YOU KNOW, IN SOME WAYS IT SOUNDS LIKE HE'S PAYING INTO THIS FEE.

THAT'S WHY ASKED THAT QUESTION.

I, I DON'T RECALL THE NUMBER OF COMPANIES, MR. GENESEE MAY YEAH, I WAS GONNA SAY 10.

SO HE

[02:00:01]

REMEMBERS 13.

SO IT'S, IT'S, LET'S, LET'S JUST SAY ROUGHLY AROUND A DOZEN CUSTOMERS THAT COULD POTENTIALLY, AND ONE THING THAT I, THAT I WILL POINT OUT ABOUT THIS PROPOSED TARIFF IS THAT IT'S, IT'S AN OPTIONAL TARIFF FOR THESE, UM, PARTICULAR CUSTOMERS.

YOU KNOW, THEY HAVE TO, TO, TO SIGN AN AGREEMENT.

UM, AND THERE MAY BE SOME CUSTOMERS THAT DECIDE TO STAY IN THEIR CURRENT CLASS.

SO EVEN THOUGH THERE MAY BE A DOZEN OR SO THAT ARE ELIGIBLE, THEY MAY NOT CHOOSE TO DO THIS, THEY MAY SAY, NO, I LIKE, YOU KNOW, HAVING THE ABILITY TO, UH, PARTICIPATE IN THE ENERGY EFFICIENCY PROGRAMS AND MAY DECIDE TO STAY IN THEIR CURRENT RATE CLASS.

AND AS FAR AS THE, THE BUDGET GOES, I MEAN, I DON'T THINK THE BUDGET HAS BEEN SET, OBVIOUSLY FOR FISCAL YEAR 23, BUT I, I DON'T THINK WE'RE EXPECTING A LARGE, UH, IMPACT TO THE BUDGET AT ALL, IF ANY, FROM THIS PROPOSAL.

DOES THAT ANSWER ANSWER YOUR QUESTION? ANYTHING ELSE? YEAH, I THINK SO.

THANK YOU.

CAN I ASK A FOLLOW UP? UH, YES.

YEAH, GO FOR IT.

I GUESS I'M CONFUSED.

HOW COULD BE, HOW COULD THERE BE NO IMPACT ON, ON THE BUDGET IF THEY'RE PAYING INTO THIS FUND NOW? AND I DON'T IN THE FUTURE.

WE DON'T KNOW HOW MANY OF US, I'M GONNA LET MR. GENESEE SPEAK TO THAT QUESTION.

RICHARD GENESEE, VICE PRESIDENT OF, UH, CUSTOMER ENERGY SOLUTIONS, AGAIN, UM, UM, WE DON'T KNOW HOW MANY OF THE 13 WOULD TAKE US UP ON THE OFFER TO, UH, ENTER INTO THE, UH, HIGH LOAD FACTOR RATE CLASS.

UH, BUT LIKE I SAID, I THINK THERE'S SOMEWHERE BETWEEN 10 AND 13 THAT WOULD BE ELIGIBLE.

AND EVEN IF, UH, THEY TOOK IT, WE BELIEVE, DON'T HAVE AN EXACT NUMBER TONIGHT, BUT THAT THE IMPACT IS NEGLIGIBLE, THAT IT'S NOT, IT'S NOT, UH, THAT'S SIGNIFICANT RELATIVE TO THE TOTAL NUMBER OF CUSTOMERS OR WHAT THOSE CUSTOMERS.

BILL, DO YOU HAVE A QUESTION? I, I'M NOT GOING, I, I'LL WAIT TILL RICHARD'S THROUGH MR. WHITE.

I WAS GONNA ASK A CLARIFYING QUESTION TO, TO THE SAME, TO TO TO, TO THE SAME, UH, FUNDING STRUCTURE ISSUE.

SO DOES ALL OF THE FUNDING TO THIS POT OF MONEY COME FROM ENERGY EFFICIENCY SERVICES FEE, OR WOULD IT BE POTENTIALLY COMING, OR, OR DOES A CHUNK OF IT COME FROM ANOTHER PART OF THE YIN BUDGET, OR COULD YOU EXPLAIN BRIEFLY HOW THAT WORKS? OR IS IT JUST THE CASE THAT, THAT IT'S A POT OF MONEY ENTIRELY FUNDED BY THIS FEE? OR ARE THERE OTHER AVENUES TO PROVIDE FUNDING, SAY IF THERE WERE A, A DECREASE OR, OR, YOU KNOW, ANY, ANY, ANY OTHER CIRCUMSTANCES BEYOND THIS, UH, POTENTIAL RATE CLASS CHANGE? OH, YES.

I THINK WE'RE GONNA HAVE, UH, MR. MANUS, UH, ADDRESS THAT THE VP OF FINANCE, I THINK HE'S ON.

YES, I'M HERE.

CAN YOU REPEAT THE QUESTION, PLEASE? WHAT WAS IT? YES, UH, THANK YOU.

I WAS ASKING, UM, HOW EXACTLY IS, DOES THE FUNDING MECHANISM WORK, UH, FOR ENERGY EFFICIENCY SERVICES? UH, IS, IS, DOES ALL OF THE FUNDING COME FROM, UH, LEVIED FROM THAT FEE? UH, OR ARE THERE OTHER AVENUES OF FUNDING? UM, FOR, FOR THE, FOR ENERGY EFFICIENCY SERVICES? OH, ALL THE PROGRAMS THAT, UM, THAT ARE, UM, UH, INCLUDED IN THE EES, UM, UH, PROGRAMS ARE FUNDED, UH, PURELY BY THE E E S FEE.

AND THERE'S NO CASES OF BALANCING THAT BUDGET THROUGH OTHER FUNDS IF IT WAS EVER NECESSARY.

WELL, IF, IF IT'S NECESSARY, IF, IF THE, IF THE EES PROGRAMS REQUIRE ADDITIONAL FUNDING, THEN, THEN THE EES RATE IS SIMPLY RAISED.

OKAY.

THANKS FOR CLARIFYING THAT.

UM, I HAVE A QUESTION AND A SUGGESTION AND A COMMENT, SO I'LL TRY TO WEDGE THEM ALL TOGETHER.

IT IS ENTIRELY FEASIBLE TO CALCULATE THE LOSS

[02:05:01]

TO THE ENERGY EFFICIENCY FUND, UH, BY GAUGING A MINIMUM AND A MAXIMUM.

IF YOU'VE GOT ONE CUSTOMER WHO'S GONNA TAKE THIS RATE IMMEDIATELY AND ANOTHER 10 TO 13, THAT MIGHT, THEN IT WOULD BE A SIMPLE CALCULATION TO APPLY THE INDUSTRIAL ENERGY SERVICES FEE OR THE THIS, UH, THAT THEY WERE UNDER, UH, TO THE AMOUNT OF ELECTRICITY THAT THEY USE.

NOW, I REALIZE THAT, UH, SPECIFIC CUSTOMER DATA IS CONFIDENTIAL, BUT, UH, THERE'S A WAY THAT YOU CAN ESTIMATE THIS, UH, AND I'M ASKING THAT YOU DO THAT, AND I'M ASKING IF YOU CAN BRING THAT BACK TO US AT THE NEXT MEETING, AND WE CAN BRING THIS, WE CAN CONSIDER THIS RESOLUTION.

AGAIN, WITH THAT INFORMATION, I CAN TELL YOU THAT BASED ON THIS PARTICULAR RATE STRUCTURE AND THIS ONE CLIENT THAT IS GOING TO BE ON IT IMMEDIATELY, I'M MADE A BALLPARK ESTIMATE ON HOW MUCH WOULD BE LOST FROM THE ENERGY SERVICES FEE.

IT WAS NOT ROCKET SCIENCE.

AND IF I'M, I'M GOING FOR MEMORY HERE AND I CAN GET YOU ALL A MORE SPECIFIC FIGURE, BUT I RECALL IT BEING NORTH OF $200,000 FOR ONE PARTICULAR COMPANY.

SO IF YOU MULTIPLIED THAT POTENTIALLY BY 10 OR 13, IT WOULD BE A CONSIDERABLE LOSS OF REVENUE.

LET'S NOT, UH, LET'S GET A MORE DEFINITIVE FIGURE BY THE NEXT MEETING, AND, AND WE COULD CONSIDER THIS THEN.

SO ARE YOU SUGGESTING YOU WANT TO TABLE THIS RESOLUTION? I AM SUGGESTING THAT WE TABLE THIS RESOLUTION AND GET SOME MORE INFORMATION ABOUT HOW MUCH REVENUE WOULD BE LOST, UH, TO THE ENERGY EFFICIENCY SERVICES, THE POTENTIALLY, RICHARD, IS THAT SOMETHING YOU GUYS ARE ABLE TO CALCULATE? I WOULD JUST OBSERVE, UM, THAT THIS HAS ALREADY BEEN A LITIGATED PROCEEDING BEFORE AN INDEPENDENT HEARING EXAMINER, AND THAT MR. ROBBINS WAS A PARTICIPANT IN THAT PROCEEDING.

UM, I, IN TERMS OF, OF WHAT WE CAN DO TO PROVIDE SUPPLEMENTAL, UH, RFI RESPONSES, I FRANKLY AM GONNA NEED TO TALK TO OUR LAW DEPARTMENT.

UM, SO I THINK THAT'S JUST SOMETHING WE'RE GONNA HAVE TO LOOK AT.

I CAN'T REALLY SPEAK TO, UH, THAT RIGHT NOW BECAUSE WE'RE, WE'RE TRYING TO RESPECT THE INTEGRITY OF THE PROCESS.

EXCUSE ME.

THAT WAS HAVING BEEN A COMMISSIONER ROBINS, UH, YOU WILL NOT INTERRUPT.

I DID.

I THOUGHT SHE WAS THROUGH, SHE WAS NOT.

PLEASE CONTINUE.

FORGIVE ME.

I WAS JUST SAYING WE'RE TRYING TO RESPECT THE PROCESS THAT THERE WERE A LOT OF PARTICIPANTS IN, AND THAT THE CITY COUNCIL SET UP TO, UH, HAVE THIS ISSUE LITIGATED BEFORE AN INDEPENDENT HEARING EXAMINER.

SO, AGAIN, I, I DON'T WANNA SAY YES OR NO AT THIS POINT, WITHOUT CONSULTING WITH OUR LAW DEPARTMENT.

MAY I SPEAK, UH, I AM IN FACT, UH, ONE OF 10.

I AM IN FACT ONE OF 10 INTERVENERS, AND THE, UH, CASE HAS BEEN HEARD, BUT THE CASE IS OVER, AND THIS IS NOW ALL GOING TO THE CITY COUNCIL, AND IT IS OUR, UH, PURVIEW TO ADVISE THE CITY COUNCIL.

UH, WE, OUR MC IS NOT, UH, AN INTERVENER IN THE RAPE CASE.

UH, AND FOR THAT MATTER, THE, UH, INDEPENDENT, EXCUSE ME, THE IMPARTIAL HEARINGS EXAMINER IS NOT SOVEREIGN.

UH, HE HAS MADE A RECOMMENDATION TO CITY COUNCIL, WHICH THEY ARE NOT BOUND TO ACCEPT.

SO AGAIN, I WOULD LIKE TO SUGGEST TABLING OF THIS, UH, WHILE WE GET MORE INFORMATION ABOUT WELL BEFORE YOU TABLE IT CAN, CAN I ASK A QUESTION? ALL RIGHT.

COMMISSIONER WHITE, YOU HAVE A QUESTION? PLEASE ASK IT.

I IS JAMES STILL IN THE ROOM? HE IS.

I, I BELIEVE THAT HE, HE MIGHT HAVE INFORMATION RELEVANT TO THIS QUESTION.

UM, I I BELIEVE THAT, THAT CYRUS, ONE OF OUR EXPERTS DID,

[02:10:01]

DID A CALCULATION.

AND, AND I'M JUST WONDERING IF HE CAN, SINCE WE'RE IN SEARCH OF, OF THIS INFORMATION, IF YOU CAN SHARE THAT PLEASE.

UH, JAMES SIERRA CLUB, UH, IT'S KIND OF HARD TO LOOK IT UP ON AN IPHONE, BUT I BELIEVE CLARENCE, I'M SORRY, UH, CYRUS, UH, UH, READ AS, AS A WITNESS IN THE, IN THE CASE, QUANTIFIED IT IN HIS TESTIMONY AND QUANTIFIED IT AT $1.4 MILLION.

BUT AGAIN, I'D HAVE TO BE ABLE TO KIND OF DIG BACK INTO THE RECORD TO CONFIRM THAT IF THERE ANY QUESTIONS.

THANK YOU, JEAN.

ALL RIGHT.

ANY FURTHER QUESTIONS FOR EITHER JAMES OR THE REPRESENTATIVES FROM AUSTIN ENERGY? WELL, I, I REALIZE THAT I'M, I, I MISSPOKE WHEN I ASKED MY, MY QUESTION BEFORE, WHICH I, I THINK I SAID, UH, NXP AND I MEANT TO SAY DATA FOUNDRY, AND I DID FIND, UM, THE RCA THAT, THAT CAME TO THE R THE RMC AND, AND WE DID APPROVE, UM, FOR ENERGY EFFICIENCY IMPROVEMENTS WITH DATA FOUNDRY.

SO I, I JUST WANTED TO CORRECT MYSELF FIRST OF ALL, CUZ DIDN'T MEAN TO SAY THE WRONG COMPANY NAME.

SORRY ABOUT THAT.

UM, BUT, YOU KNOW, I, I JUST, I DON'T KNOW IF IT'S A QUESTION AT THIS POINT, CUZ I DID FIND IT, BUT YOU KNOW, THEY, THEY GOT, THEY GOT MONEY FROM THE ENERGY EFFICIENCY BUDGET TO, TO MAKE IMPROVEMENTS AT THEIR FACILITY IN 2018.

AND, UM, YOU KNOW, THEY, THEY ARE NOW, THEY'RE THE, THE PARTY THAT HAS BEEN PUSHING FOR THIS NEW RATE CLASS, WHICH I DON'T NECESSARILY HAVE AN OBJECTION TO, BUT LIKE, LIKE PAUL, I I DO HAVE A CONCERN ABOUT THEM NOT PAYING INTO A FUND THAT, YOU KNOW, JUST A FEW YEARS AGO THEY DID DIRECTLY FROM, AND, AND I'LL PUT THAT IN THE, THE CHAT AND, UH, ASK THAT IT BE CIRCULATED SO THAT FOLKS CAN HAVE THAT.

I, I DON'T HAVE ANY OBJECTION TO TABLING.

I JUST WANTED FOLKS TO HAVE THAT INFORMATION.

AND I WOULD JUST ADD ON THAT POINT THAT YES, I, I DO RECALL THAT NOW THAT WAS SOMETHING THAT WAS RAISED AT THE HEARING AND, AND I BELIEVE THE REPRESENTATIVE FROM DAY TO FOUNDRY INDICATED THAT YES, AT, AT THAT TIME THEY WERE AN ELIGIBLE CUSTOMER.

THEY HAD BEEN PAYING INTO, UH, THE ENERGY EFFICIENCY FUND.

AND SO, YOU KNOW, IT WAS APPROPRIATE FOR THEM TO SEEK A BENEFIT AT THAT POINT, BUT THAT GOING FORWARD, THEY WOULD NOT BE, UH, SEEKING ANY BENEFIT FROM THE PROGRAM.

THEY, THEY ACKNOWLEDGED THAT.

YEAH, AND, AND I HAVE ACTUALLY NO, UH, QUALMS WITH THEM HAVING TAKEN ADVANTAGE OF THE PROGRAM.

BUT, YOU KNOW, I, I'M, I'M SUPPORTIVE OF, OF EVERYBODY, UH, MAKING ENERGY EFFICIENCY UPGRADES.

I, I THINK WHEN YOU, YOU KNOW, GET, YOU KNOW, $98,000 OUT OF THE PROGRAM AND THEN, YOU KNOW, THEN, THEN YOU'RE DONE WITH IT, UM, YOU KNOW, THAT THAT'S WHERE, THAT'S WHERE I GUESS I, I DON'T THINK THAT'S FAIR.

BUT, UM, IN ANY CASE, I JUST, MORE JUST INFORMATION SHARING, PEOPLE CAN TAKE THAT AS THEY, AS THEY CAN CORRECTION OR NOT CLARIFY.

YEAH, IF YOU COULD DO IT OUTTA MIC, JUST SO WE'VE, EVERYONE CAN HEAR, UH, JAMES BRAZIL FOR SIERRA CLUB.

I HAVE ONE CLARIFICATION.

I THINK I'VE FOUND THAT THE $1.4 MILLION WAS IF ALL THE HIGH LOAD FACTOR CUSTOMERS, INCLUDING NOT JUST THE PRIMARY TWO, BUT ALL THE OTHER EXISTING HIGH LOAD FACTOR CUSTOMERS, IF THEY PAID THE E A ES FEE.

SO IT WAS NOT JUST SPECIFIC TO THE P I TWO, IF ANY QUESTION, HOW MANY CUSTOMERS? I, I DON'T KNOW.

I DON'T HAVE THAT INFORMATION FOR THE TEST.

UH, BECAUSE WE MAY BE WORKING UNDER TWO DEFINITIONS.

ONE IS WHAT YOU REVIEWED IN THE RATE CASE AND THE OTHER IS ALL THE NEW CUSTOMERS THAT MIGHT JUMP ONTO THIS NEW RATE IF, IF THEY CHOOSE TO.

RIGHT? AND WE WERE ADDRESSING THE CUSTOMERS THAT WERE JUMPING ONTO THAT NEW RATE, BUT THE NUMBER, THE 1.4 MILLION QUANTIFICATION THAT MR. REED INCLUDED, I THINK RELATED NOT JUST TO THOSE, BUT AS WELL TO THE REMAINING HIGH LOAD FACTOR CUSTOMERS IN OTHER CLASSES THAT ALSO DON'T PAY THE E E S FEE.

OKAY.

THANK YOU.

ALL RIGHT.

ANY FURTHER QUESTIONS OR COMMENTS ON THIS TOPIC? ALL RIGHT.

UH, COMMISSIONER ROBBINS, WHO MADE THE MOTION TO APPROVE THE, UH, RESOLUTION HAS OFFERED TO TABLE THIS TO A FUTURE MEETING.

IS THAT CORRECT? I'D LIKE TO HAVE THIS POSTED FOR THE NOVEMBER.

I'D LIKE TO HAVE THIS POSTED FOR THE NOVEMBER MEETING.

ALL RIGHT.

NOTING THAT WE WILL TABLE THIS ITEM FOR PICK IT UP AT A LATER MEETING.

[02:15:04]

UH, THAT CONCLUDES AGENDA ITEM FOUR.

UH, NEXT STEP, UH,

[5. Discussion and possible action on the 2023 Resource Management Commission Meeting Schedule.]

DISCUSSION AND AGENDA ITEM FIVE, DISCUSSION AND POSSIBLE ACTION ON THE 2023 RESOURCE MANAGEMENT COMMISSION MEETING SCHEDULE.

IF YOU GUYS WILL GIMME A SECOND, I WILL SHARE THOSE.

ALL RIGHT.

PROPOSED MEETING DATES FOR 2023 ARE ON THE SCREEN.

UH, IF, IF ANYONE HAS ANY QUESTIONS OR COMMENTS, WE CAN TAKE THOSE NOW.

OTHERWISE, I WOULD ENTERTAIN A MOTION TO ADOPT THESE MEETING DATES.

SO MOVED.

SECOND MOTION ON THE TABLE FROM COMMISSIONER STONE TO ADOPT, UH, THE MEETING DATES FOR 2023 AS POSTED.

UH, WE'LL TAKE A ROLL CALL VOTE.

COMMISSIONER BLACKBURN VOTES? YES.

COMMISSION WHITE.

UH, I WAS JUST ASK, UH, FOR A SECOND TO LOOK AT MY CALENDAR AGAIN.

SORRY.

UH, CAN YOU, ARE ARE YOU LOOKING NOW? WHAT, WHAT'S THE YEAH, YEAH.

I JUST, UH, NEED, YOU KNOW, 60 SECONDS OR 90 SECONDS.

WELL, HE'S DOING THAT.

CAN I JUST ASK ABOUT THE DECEMBER MEETING? UM, YOU KNOW, CITY COUNCIL ADDS MEETINGS TO THEIR AGENDA, YOU KNOW, KIND OF PER PRETTY ON THE FLY, YOU KNOW, WITH, WITH A MONTH NOTICE OR WHATEVER.

SOMETIMES.

UM, I GUESS I'M JUST, YOU KNOW, I DON'T KNOW.

HAVE WE, HAVE WE ALWAYS NOT HAD A DECEMBER MEETING OR IS, IS THIS KNEW I, I CAN'T COMMENT ON BEFORE MY TURN, BUT IN THE FOUR YEARS I'VE BEEN HERE, WE HAVE NOT HELD MEETINGS IN DECEMBER AND I DON'T HAVE A REAL OBJECTION.

I GUESS WE CAN ALWAYS MAKE A SPECIAL MEETING IF WE ALL RIGHT.

UH, SO CONTINUING TO VOTE.

COMMISSIONER WHITE.

AYE VOTE.

JESS.

COMMISSIONER DAVIS.

OKAY.

CAN YOU REPEAT THAT? YES.

GOTCHA.

THANKS.

SORRY.

UH, AND GLORIA'S NOT HERE.

UH, COMMISSIONER JOHNSON, DO YOU NEED MORE TIME? UH, I'LL VOTE YES.

COMMISSIONER ROBBINS? YES, IT'S, YES.

COMMISSIONER STONE.

YES.

VOTES? YES.

COMMISSIONER HARMON.

ABSENT.

COMMISSIONER BRENNEMAN ABSENT.

COMMISSIONER SHARIA? YES.

VOTES? YES.

UH, THAT ITEM PASSES ON A SEVEN TO ZERO VOTE.

ALL RIGHT.

UH, ITEM NUMBER

[6. Update from the Resource Management Commission Toxic Building Working Group.]

SIX, UPDATE FROM THE RESOURCE MANAGEMENT COMMISSION TOXIC BUILDING WORKING GROUP.

UH, WOULD ONE OF THE MEMBERS OF THE WORKING GROUP LIKE TO GIVE US AN UPDATE? THE ORIGINAL RESOLUTION THAT WE PASSED WAS TO REPORT, UH, ALREADY, AND THE GROUP HAS BEEN SOMEWHAT DELAYED, BUT WE HAVE SPEEDED UP OUR MEETING SCHEDULE.

HOPEFULLY WE, WE WILL HAVE SOMETHING SUBSTANTIVE TO GIVE YOU IN NOVEMBER.

OKAY.

ANY QUESTIONS OR COMMENTS FOR THE TOXIC BUILDING WORKING GROUP? ALL RIGHT.

HEARING NON, GIVE ME JUST A SECOND ON THIS NEXT ONE.

YEAH.

ALL RIGHT.

SO, UH, LAST ITEM ON

[FUTURE AGENDA ITEMS]

THE AGENDA IS FUTURE AGENDA ITEMS. UH, FOR NOVEMBER, UH, WE'VE GOT A QUARTERLY UPDATES FROM TEXAS GAS AND AUSTIN WATER.

UH, ALSO AN UPDATE FROM, UH, TEXAS GAS ON THE H TWO AT SCALE PROJECT AT UT.

THIS IS A HYDROGEN PROJECT.

UH, WE HAVE AN ITEM DISCUSSION OF COMMUNITY FEEDBACK ON ELECTRIC READY AND EV READY CODE, AMENDMENTS AND INCENTIVES AND NEXT STEPS, UH, AS WELL AS THE, UH, RESOLUTION THAT WAS JUST TABLED.

UH, ANY OTHER, UH, ITEMS TO DISCUSS? UM, I JUST WANTED TO, UH, CLARIFY THAT I, I DO PLAN TO HAVE AN ITEM FOR ACTION ON THE, UH, EV AND ELECTRIC READY, UM, ISSUE.

SO I, I DO ENCOURAGE, I THINK IT'S BEEN SENT ON TWICE, UH, FOLKS TO LOOK AT THOSE, UH, SURVEY RESULTS.

IT'S A REALLY LONG DOCUMENT, BUT A LOT OF IT IS, IS INDIVIDUAL RESPONSES, WHICH I THINK

[02:20:01]

ARE, ARE GOOD TO READ.

BUT IF YOU WANNA SHORTEN UP YOUR READING, YOU CAN GO TO THE, THE PAGES WITH THE GRAPHS THAT, THAT SUMMARIZE, UM, THE RESPONSE, OR I ENCOURAGE FOLKS TO LOOK AT THAT, AND I WILL SEND SOMETHING OUT AT LEAST A COUPLE WEEKS IN ADVANCE SO PEOPLE CAN SEE THE GRAPH LANGUAGE.

I GUESS I HAVE A QUESTION ABOUT PROCESS REGARDING TEXAS GAS SERVICE.

UH, CHAIR.

UM, I'VE DISCOVERED, AND MANY OF THE COMMISSIONERS KNOW THIS, BUT I'VE DISCOVERED THAT, UM, THEIR REBATES, UM, WILL ALLOW, UM, REPLACEMENTS, UH, IF SOMETHING BREAKS VERY QUICKLY.

UM, AND IN AUSTIN ENERGY, IF YOU GET AN AIR CONDITIONER AND IT RECEIVES A REBATE, YOU CAN'T RECEIVE ANOTHER REBATE FOR 10 YEARS.

SAME WITH SOLAR CELLS.

UH, IF AUSTIN ENERGY GIVES YOU A SOLAR CELL REBATE, YOU CAN'T GET IT FOR 10 YEARS, ANOTHER ONE FOR 10 YEARS.

SO, I'M WONDERING WHY WE DON'T IMPLEMENT THIS FOR TEXAS GAS SERVICE, AND I DO NOT KNOW PROCEDURALLY IF I CAN WEDGE THAT INTO THEIR REPORT OR NOT.

DO I NEED TO, DO WE NEED TO POST SOMETHING AS A SEPARATE ITEM, OR CAN IT BE TAKEN UP, UH, IN THE CONTEXT OF THAT REPORT? UH, I, I DON'T KNOW WHAT YOU MEAN BY WEDGE SOMETHING IN THEIR REPORTS.

OKAY.

IF I WANTED US TO CONSIDER RECOMMENDING A SIMILAR POLICY TO WHAT AUSTIN ENERGY DOES WITH THEIR APPLIANCE REBATES, CAN I BRING THAT UP DURING THEIR REPORTS OR DOES THAT NEED TO BE POSTED AS A SEPARATE ITEM? YOU ARE WELCOME TO ASK THEM ABOUT THAT DURING THEIR PRESENTATION, BUT THAT ITEM IS A BRIEFING ITEM, UH, WITH NO ACTION ATTACHED TO IT.

IT, OKAY.

I WILL CONSIDER, UH, I WILL CONSIDER IF I WANT TO POST THIS AS AN ITEM, I'LL TALK ABOUT THIS WITH LESS THAN A QUORUM OF MY FELLOW COMMISSIONERS.

NOTED.

THANK YOU.

ANYONE ELSE? ALL RIGHT, THEN THE LAST, THEN, JUST A NOTE FOR ME ON THIS TOPIC, UH, FOLKS, JUST AS A REMINDER, PROCEDURALLY HOW THIS WORKS, GOTTA HAVE ITEMS IN, UH, THE DEADLINE FOR POSTING IS A THURSDAY BEFORE 5:00 PM UH, JUST BECAUSE THAT'S THE DEADLINE FOR POSTING, THERE IS A SET OF ADMINISTRATIVE ACTIONS THAT HAVE TO HAPPEN FOR THAT TO TAKE PLACE.

UH, IF YOU CONTACT ME THE AFTERNOON OF THURSDAY BEFORE A MEETING WITH AN AGENDA ITEM OF WHICH I AM UNAWARE, IT IS VERY LIKELY THAT YOUR AGENDA ITEM WILL NOT GET ADDED TO THAT MONTH'S MEETING.

UH, SO I WOULD ENCOURAGE YOU ALL THAT.

IF YOU HAVE AGENDA ITEMS, PLEASE MAKE MYSELF AND NATASHA AWARE OF THEM AS FAR IN ADVANCE AS POSSIBLE, EVEN IF IT IS NOT, UH, FINALIZED.

WITH THAT, UH, WE'RE GONNA GO AHEAD AND ADJOURN THE MEETING.

UH, I THANK YOU ALL FOR COMING.

WE WILL SEE YOU IN NOVEMBER.

NATASHA, IT IS EIGHT 30 AND THIS MEETING IS ADJOURNED.

THANK YOU.

THANK YOU SO.