[00:00:01]
[CALL MEETING TO ORDER]
HOW'S THE AUDIO? IT SOUNDS LIKE IT'S FINE.OKAY, SO THIS IS THE MEETING OF THE ELECTRIC UTILITY COMMISSION.
UM, LET'S CALL THE MEETING TO ORDER.
FIRST THING ON THE AGENDA IS THE INTRODUCTION OF THE NEW COMMISSIONERS.
IF EVERYONE COULD, UM, HAVE THEIR VIDEO ON ONLINE, THAT WOULD BE GREAT.
CAN WE TAKE OFF THE AGENDA? YEAH.
COULD WE SEE THE BIGGER PICTURES VERSUS THE AGENDA? IS CYRUS IN AN EMERGENCY VEHICLE HERE?
YOUR CYRUS IS OUTSIDE THE MAC CALLUM, UM, PERFORMING ARTS CENTER.
UH, HOPING THIS MEETING DOESN'T TAKE TOO LONG SO HE CAN SEE HIS DAUGHTER IN THE MAC CALLUM SPRING BATH CONCERT.
OKAY, SO WE HAVE, LET'S DO SOME INTRODUCTIONS OF THE NEW COMMISSIONERS.
WE HAVE RA ALVA ALVAREZ, WE HAVE JONATHAN BLACKBURN AND JEREMY SEABERT.
SO WE HAVE JEREMY ONLINE THERE.
JEREMY, DO YOU WANNA UNMUTE, YOU KNOW, GIVE A LITTLE BIT OF INFORMATION ABOUT YOURSELF? ABSOLUTELY.
CAN YOU GUYS HEAR ME OKAY? AWESOME.
I WORK, UH, AT CENTERPOINT ENERGY AS A DATA SCIENTIST.
SO, UM, THIS IS THE FIRST COMMISSION THAT I'VE EVER SERVED ON.
REALLY EXCITED TO, UH, HELP OUT.
YOU KNOW, I'LL LEARN THE PROCESS ALONG THE WAY.
PARDON, WHO'S DISTRICT? WHO DO YOU REPRESENT? WHICH, WHICH, UH, COUNCIL MEMBER, UH, NATASHA HARPER.
DO WE HAVE RA OR JONATHAN? OKAY, WELL, LET'S MOVE ON THERE.
UM, ALSO I'D LIKE TO THANK ROBIN AND EMMI, IF YOU'RE THE ONES WHO FINISHED THIS FOR THE, UH, INTRODUCTORY PACKET.
UM, WE DIDN'T HAVE THIS WHEN I JOINED, AND I THINK THIS IS USEFUL.
SO IT'S A INTRODUCTORY COVER PAGE AND SOME INFORMATION ABOUT LINKS AND WHO THE MEMBERS ARE, AS WELL AS THE BYLAWS.
SO I THINK THAT WAS A VERY USEFUL THANK YOU FOR DOING THAT.
UM, AND I THINK YOU SENT THAT ONLINE AS WELL AS HAVE IT HERE, RIGHT? SO LOOK FOR YOUR EMAILS ON THAT.
THANK YOU AGAIN FOR DOING THAT.
[APPROVAL OF MINUTES]
APPROVAL OF MINUTES.SO MOVED THE PROOF OF MINUTES AS PRESENTED.
BUT, UM, COMMISSIONER ALVAREZ HAS JOINED THE MEETING.
NOW ALL THE GADGETS WORK,
ALVAREZ, UM, APPOINTED BY DISTRICT THREE COUNCIL MEMBER, UM, UH, JOSE VELAZQUEZ AND, UM, KIND ALMOST CHARMED OUT ON THEIR EARLY CHILDHOOD COUNCIL.
UM, BUT, UH, AND I'M ALSO A PREVIOUS EUC MEMBER FROM THE MID TWO THOUSANDS AND FORMER CITY COUNCIL MEMBERS, SO I KIND OF HAD TO FORGOT THE MOST IMPORTANT THING RAUL, UM, THAT YOU AND I WORKED TOGETHER AT TEXAS CENTER FOR POLICY.
DIDN'T YOU? DIDN'T BOTH OF US WORK THERE? OH, YEAH, THAT'S, YEAH.
TEXAS CENTER FOR POLICY STUDIES.
SIERRA CLUB, HENRY LOWRY JOHNSON.
UM, ALL THE DO GETTERS, ALL THE, BUT, BUT, UH, BUT HAPPY TO BE BACK AT EUC.
UH, YOU KNOW, AUSTIN ENERGY IS, UH, SUCH AN IMPORTANT INSTITUTION AND JUST HAPPY TO, UM, PROVIDE SOME COMMUNITY FEEDBACK FOR THE GOINGS ON THERE.
SO THANKS FOR, THANKS FOR LETTING ME SHARE A FEW WORDS AND I'LL TURN ON SOME LIGHT SO YOU CAN ACTUALLY SEE MY FACE.
UH, AND BY WAY OF INTRODUCTION, I WORKED WITH LEGAL AID FOR ALMOST FOREVER.
[00:05:01]
UH, WELL, I UNDERSTAND YOU'RE WORKING WITH, UH, COMMUNITY ACTION IS OUR, IS THAT CORRECT? THE CAN? THE CAN.I GUESS I SHOULD MENTION THAT I'M EXECUTIVE DIRECTOR FOR, UH, IT'S COMMUNITY ADVANCEMENT NETWORK NOW.
IT USED TO BE COMMUNITY ACTION NETWORK AND THERE'S A LONG STORY BEHIND WHY THE CHANGED HAPPENED, BUT, UH, BUT YES, I'M THE ED FOR CAN AND UH, I THINK I'VE BEEN THERE ABOUT EIGHT YEARS AS WELL.
UH, SO YEAH, KIND OF DABBLE IN A LOT OF DATA RESEARCH AND PUBLIC POLICY.
AND AGAIN, JUST EXCITED TO BE INVOLVED HERE WITH, UH, AUSTIN ENERGY AGAIN, JUST CUZ UM, ALWAYS, UH, VERY IMPORTANT TO APPRECIATE YOU MENTIONING THAT
UM, WHILE WE'RE GOING IN, DO YOU WANT TO GO AHEAD AND INTRODUCE YOURSELVES FOR THE EXISTING MEMBERS THAT ARE HERE? WHY DON'T WE JUST SAY A FEW WORDS, BUT WE DO INSIDE AND OUTSIDE OF THE UC.
RANDY CHAPMAN, UH, BEEN ON THE E U C FOR A COUPLE YEARS NOW.
UH, BUT FOLLOWING AUSTIN ENERGY FOR, FOR YEARS, UH, REPRESENT AND STATEWIDE, I'VE REPRESENTED LOW INCOME, UH, CLIENTS, UH, PROGRAM IN TERMS OF EXPANDING ACCESS TO PROGRAMS LIKE CAP AND WEATHERS AND LOW INCOME WEATHERIZATION EQUITY PROGRAMS. UH, PARTICULARLY MY INTEREST ALONG WITH ENVIRONMENTAL PROGRAMS. THANK YOU.
AND WHILE WE'RE AT A K, DO YOU WANNA TELL A FEW WORDS ABOUT? SURE.
UM, I'M, UH, KRO, I, UM, AM JUST STARTING MY SECOND TERM ON THE EUC.
I'M, UH, FROM PAGE ELLIS', DISTRICT EIGHT, UM, AND I WAS A, UM, I'M A RETIRED, UH, LAWYER, UH, WORKED IN, UH, THE PUBLIC UTILITY ARENA FOR ABOUT 30 SOMETHING YEARS AND WAS FORMERLY A, UM, ADMINISTRATIVE LAW JUDGE AT THE PC AND THEN HAD A PRIVATE PRACTICE FOR, UM, SEVERAL YEARS, UH, AFTER THAT.
CYRUS REED, UH, JACK OF ALL TRADES, MASTER OF NONE.
BEEN WORKING FOR SIERRA CLUB FOR MANY YEARS FROM THE ESTEEMED.
CAM KRAMER BROUGHT ME ON IN 2007 OR SO.
UH, AND UH, WHEN I'M NOT AT THE EUC THESE DAYS, I'M AT THE LEGISLATURE A LOT.
UH, TRYING TO FIGURE OUT WHAT'S GOING ON AND WHAT LITTLE INFLUENCE I HAVE OVER THERE.
UH, AND I'LL TURN IT OVER TO WHO ELSE IS IN THE ROOM.
I'M REPRESENTING DISTRICT TWO, BUT I LIVE IN DISTRICT THREE AND I WORK FOR PUBLIC CITIZENS TEXAS OFFICE.
SO WANNA WORK ON A VARIETY OF CLIMATE AND ENERGY POLICY ISSUES.
AND THIS IS MY FIRST TERM ON THE EUC, SO I'M PRETTY NEW AS WELL.
AND I SERVED ON THE RMC PRIOR TO THIS.
I TEACH AND DO RESEARCH AT UNIVERSITY OF TEXAS AT AUSTIN AND THE ENERGY INSTITUTE.
DO YOU HAVE TENURE? JUST KIDDING.
I'M A LECTURER AND RESEARCHER, NOT TENURE TRACK.
SO DID I MISS ANYBODY? I THINK WE'VE GOT SEVEN THAT WE WENT THROUGH.
WE HAVE A MOTION FOR THE MINUTES AND A SECOND.
CAN WE HAVE A VOTE ON THAT? UM, I MISSED WHO, WHO DID THE MOTION IN THE SECOND MOTION? SECOND.
CAN WE HAVE A VOTE ON THE MINUTES? SAY, AYE.
WE HAVE UNANIMOUS VOTE ON THAT.
LET'S GET INTO THE, I THINK ROBIN WANTED TO KNOW WHO MADE THE MOTION.
WHO MADE THE SECOND? I TOLD HER IN THE ROOM.
[DISCUSSION AND ACTION ON RECOMMENDATIONS]
AND THEN WE'RE ON ITEM NUMBER TWO.LET'S GO THROUGH THE RECOMMENDATIONS.
DO WE WANNA PULL ANY, I'LL GO AHEAD AND SAY I'D LIKE TO PULL FIVE, SIX, AND SEVEN AND NINE.
UM, ANY OTHERS THAT PEOPLE WANNA DISCUSS? NO, I HAD A QUESTION IN SIX.
WHAT ABOUT MOTION? AND SECOND ON 2, 3, 4, AND EIGHT? I'D MOVE APPROVAL OF THOSE ITEMS. SECOND.
[00:10:01]
AYE.WE GIVE YOU UNANIMOUS VOTE ON 2, 3, 4, AND EIGHT.
[Items 5, 6, & 7]
ABOUT NETWORK TRANSFORMERS, THE TRANSFORMERS, ESPECIALLY SUPPLY CHAIN AND VEGETATION MANAGEMENT.SOME OF OUR FAVORITE TOPICS YOU HAVE TO
ELTON NORTH CHURCH, VICE PRESIDENT OF FIELD OPERATIONS.
WHAT'S UP GUYS? WHICH QUESTION? DAVE? OKAY.
SO NUMBER FIVE ON TRANSFORMERS.
TELL US WHAT'S GOING ON ON TRANSFORMERS BESIDES SUPPLY CHAINS AND PRICES GOING UP AND THINGS LIKE THAT.
WELL, THIS DOESN'T HAVE ANYTHING TO DO WITH IT.
THIS IS JUST AN ONGOING OR OLD CONTRACTS EXPIRING.
SO THIS IS THE NEW CONTRACT FOR THE FIVE YEARS GOING IN.
AND THIS IS SPECIFICALLY FOR THE NETWORK TRANSFORMERS IN THE DOWNTOWN NETWORK AREA.
FOR NEW BUILDS AND ALSO EMERGENT REPLACEMENTS.
ANYTHING EXCITING BESIDES SUPPLY CHAIN AND PRICES TRIPLING ON THESE? I DON'T KNOW WHETHER THAT'D BE CALLED EXCITING OR NOT, BUT, UH, NO, IT'S, UH, THE NETWORK, WE, WE'VE HAD A VERY STRONG NETWORK GROUP AND THEY'VE DONE VERY WELL ON STAGING TRANSFORMERS IN THE PAST.
UH, SO WE HAVEN'T HAD THE ISSUE THAT WE HAVE WITH THE DISTRIBUTION YET.
UH, AND THEY'RE TRYING TO BE PROACTIVE ON THIS AND I KNOW ROBIN CAPELLO IS OUR SUPPLY IS, UH, LEADING A TIGER TEAM ON BOTH THE DISTRIBUTION, UH, WOODEN POLE, ALL THE OTHERS AND DIGRESSING A LITTLE BIT, BUT YEAH, SHE'S ON TOP OF THAT.
AND SO WHEN YOU SAY NETWORK, THIS IS THE MESH DOWNTOWN? THAT IS CORRECT, SIR.
AND THEY'RE DIFFERENT TRANSFORMERS ON? YES, SIR.
ONE YOU SEE IN PULL TOP OR BOTTOM? ABSOLUTELY.
THESE, THESE ARE, UH, THE LARGE, IF YOU'VE EVER BEEN TO ONE OF THE NETWORK VAULT AREAS OR IN THE BACK, THE LARGE, LARGE THAT MANAGE THOSE, THOSE BUILDINGS DOWNTOWN.
TALK TO US ABOUT VEGETATION MANAGEMENT.
WELL THESE, THE, THE TWO FOR THE VEGETATION MANAGEMENT AND THE DISTRIBUTION CREWS ARE THE ONES THAT I SPOKE TO YOU ABOUT AT THE LAST MEETING.
UH, AND DAVE, YOU SPECIFICALLY SAID, WHAT HELP DO YOU NEED? AND I SAID, WHEN THESE COME TO YOU, JUST SUPPORT 'EM.
SO THIS IS BRINGING IN FOUR ADDITIONAL VEGETATION MANAGEMENT CONTRACTORS THAT ARE SMALLER IN SIZE THAT COULDN'T BID ON THE LARGER JOBS, BUT THESE WILL BE PRIMARILY USED ON THE WILDFIRE MITIGATION CIRCUITS AND ALSO THE UNDERPERFORMING CIRCUITS.
CAN YOU GIVE US, SO THIS IS FOR 15 MILLION, SO THIS IS IN ADDITION TO THE LARGER CONTRACTS.
CAN YOU ONCE MORE TELL US WHAT THE TOTAL BUDGET? WELL, THE TOTAL BUDGET OVER THE FIVE YEARS CYRUS WAS, WAS 87 MILLION, ABOUT 17.5 OF YEAR.
UH, BUT IF YOU'LL REMEMBER WHEN WE TALKED ABOUT THE CREW SIZE, THE COMPLIMENT FROM THE OTHER THREE CONTRACTORS AS HAS BEEN ABOUT 15 CREWS UNDER, UH, SO WE'RE ACTUALLY USED, WE HAVEN'T SPENT SOME OF THAT CONTRACT, SO THIS KIND OF OFFSETS THAT WE CAN'T DIP INTO THAT ONE, BUT WE WANTED GET THOSE ADDITIONAL CREWS IN AND CONCENTRATE ON THOSE WILDFIRE CIRCUITS AND THEN ALSO TO UNDERPERFORMING.
AND THAT'S THE INTENT ON THIS ONE.
SARS, CAN I ASK? GOOD QUESTION.
UM, IS THIS A, THIS IS A NEW COMPANY THAT AUSTIN ENERGY HASN'T BEEN CONTRACTING WITH, IS THAT CORRECT? CORRECT.
ALL FOUR OF THESE ARE, ARE THE, THE PROBLEM WITH OUR AUSTIN ENERGY, THE WAY THAT WE SET THE CONTRACTS UP IS IT IS A VERY LARGE CONTRACT.
SO THESE ARE ONES THAT COULD NOT BID OR IF THEY BID THEY WERE, THEY WERE OUTCLASSED ON THE TOTAL SCOPE.
SO IT ALSO, IT HELPS US WITH EQUALITY CAUSE IT PICKS UP SOME OF THESE SMALLER COMPANIES THAT DIDN'T HAVE A CHANCE AND THE LARGER ONES TO COME IN AND ASSIST US WITH THIS.
UM, SO I GUESS WITH THAT IN MIND, I'M, I'M WONDERING WHAT VETTING, COULD YOU HAVE ONE PERSON TALKING? JUST LEAVE ONE LIGHT OFF AND I'LL CREATE THAT.
UM, YEAH, I WAS JUST WONDERING WHAT VETTING IS BEING DONE ON THE COMPANIES, UM, IN TERMS OF, YOU KNOW, IN PARTICULAR THEIR ADHERENCE TO OUR TREE PROTECTION ORDINANCES.
UM, I ASK BECAUSE I KNOW, YOU KNOW, EVEN COMPANIES THAT ARE HAVE, YOU KNOW, CERTIFIED AR ARBORISTS DON'T NECESSARILY ALWAYS FOLLOW THE RULES HERE.
AND, UM, GIVEN THAT THESE COMPANIES WOULD HAVE WHATEVER, THEY'D HAVE A LOT OF WORK COMING TO THEM, JUST WANNA MAKE SURE THAT LIKE THE UTILITY IS DOING BUSINESS WITH, WITH COMPANIES THAT ARE GONNA, YOU KNOW, MEET THE HIGH HIGHEST BAR POSSIBLE.
ALL OF THESE INDIVIDUALS WENT THROUGH THE VETTING PROCESS ON THE BIDDING ITSELF TO MAKE SURE THAT THEY HAD OVERSIGHT ON CERTAIN ITEMS. AND THEN WE ALSO HAVE OUR INTERNAL FORESTRY DEPARTMENT
[00:15:01]
THAT SUPERSEDES THAT SUIT, OVERSEES THESE INDIVIDUALS, GOES OUT AND SEES WHAT THEY'RE DOING AND THEN THEY ALSO DO QUALITY CHECK BEHIND THEM.SO YEAH, THERE, THERE'S VERY CLOSE OVERSIGHT ON THE COMPANIES AS THEY COME ON OUR SYSTEM.
CAN YOU DESCRIBE HOW THAT WORKS? IF THERE'S A PROTECTED TREE OR EVEN A HERITAGE TREE INVOLVED, HOW DOES THAT APPROVAL PROCESS IN THAT OVERSIGHT? YEAH, THAT, THAT GOES THROUGH THE CITY.
IT'S NOT, IT'S NOT AUSTIN ENERGY PER SE.
IF WE FIND A PROTECTED CRE TREE, THEN WE ACTUALLY GO THROUGH THE CITY ON THE, THE TREE.
UH, AND THEN IT COMES INTO IS IT IN INTIMATE DANGER? UH, CAN IT BE DONE SOME OTHER ALTERNATIVE WAYS? SO YEAH, IT'S JUST NOT TO GO OUT AND LOP AND CHOP.
SO WHEN THEY COME TO THOSE TREES, THEY NEED TO STOP MARKET? WELL WE ACTUALLY, WHEN WE DO THIS, WE DO PLANNING AHEAD OF TIME.
SO WE HAVE A PLANNING GROUP THAT GOES OUT AND WALKS US DOWN.
SO WE ALREADY KNOW ALL THE TREES THAT ARE IN THAT SYSTEM.
JUST KEEP YOUR MIC ON CAUSE IT'S JUST MAKING A ECHO.
UH, SO YEAH, THEY, THEY PLAN IT OUT SO WE KNOW AHEAD OF TIME IF THERE'S A HEIRLOOM TREE WITHIN THAT AREA TO GET THE PROCESS AND THEN THEY DON'T GO IN THERE UNTIL WE GET THAT WORKED OUT.
AND THEN I GUESS MY OTHER QUESTION WAS JUST ABOUT, UM, HOW Y'ALL ARE PRIORITIZING.
I KNOW YOU, YOU MENTIONED THE WILDLIFE CORRIDORS.
UM, I WAS RECENTLY LIKE REFERRED, UH, TO A COMPANY THAT USES, UH, LIKE SATELLITE IMAGERY AND LIKE AI TO IDENTIFY AREAS THAT ARE MOST IN NEED OF TRIMMING AS OPPOSED TO LIKE GOING DOWN THE WHOLE LINE.
I'M WONDERING IF Y'ALL ARE USING ANY SORT OF TECHNOLOGY LIKE THAT TO, YOU KNOW, KIND OF MAKE THE MOST OF OUR DOLLARS.
WELL, THE MOST OF THE DOLLARS IS, THAT'S A LOT MORE DOLLARS, BUT THE ANSWER TO THAT IS, IS YES, UH, STUART RILEY, THE INTERIM GENERAL MANAGER, AND LISA MARTIN WHO IS THE INTERIM COO, UH, WE WERE JUST OUT IN CALIFORNIA WITH A COMPANY THAT IS, THAT IS LIGHT YEARS AHEAD OF US.
BUT ONE OF THE THINGS WE'VE ALREADY LOOKED AT IS THE PANO SYSTEM, WHICH USES HUMAN DETECTION AND AI WITH CAMERAS ON THE POLES, ON THE WILDFIRE SECTIONS.
SO THE, THE TRIMMING ITSELF, IT NEEDS TO BE DONE, BUT YOU CAN SEE WHICH ONES ARE WORSE WITH THE SATELLITE, OR NOT SATELLITE, BUT THE, THE DRONE.
AND THAT'S ANOTHER AREA THAT ONE OF OUR PROGRAM MANAGERS, JOEL WALSH, IS LOOKING AT TO SPECIFICALLY LOOK AT THOSE AREAS TO GET EYES ON.
CAUSE SOME OF THOSE CANYON AREAS ARE, ARE PRETTY ROUGH AND DAVE KNOWS WE'VE TALKED ABOUT THIS BEFORE.
SO YES, WE ARE LOOKING AT IT, BUT THIS IS, THIS IS NOT IN IT.
THAT'S GONNA BE A SEPARATE ISSUE.
SO YOU'RE GONNA DEPLOY DRONES TO LIKE PRE-PROGRAM FOR ALL 400 SOMETHING CIRCUITS AND THEN AUTOMATICALLY JUST TELL 'EM TO GO OUT AND LOOK OR WHAT? WELL, YOU KNOW, THAT CAPABILITY IS OUT THERE, BUT GETTING IT THROUGH THE F F A A AND THE COMPANIES THAT ARE AUTHORIZED TO DO, IT'S A LITTLE BIT DIFFERENT.
SO WE'RE, WE'RE DOING IT TWO-PRONGED.
ONE, WE'RE LOOKING AT THE CAMERA SYSTEM AS A STANDALONE CAUSE THAT THAT'S SHOWN TO BE EFFECTIVE AND THEN THE DRONE WILL COME AS SECOND.
AND THAT KIND OF COMPLIMENTED DAVE.
SO YOU SAID CAMERA SYSTEM? YEAH, SO WHAT IT IS, IT'S, UH, CAMERAS THAT ARE SET UP ON THE CERTAIN POLES DEPENDING ON THE DISTANCE IN BETWEEN.
AND WHAT IT DOES IS IT FOCUSES OUT ON THE AREA AND IT DETECTS, THERE'S HUMANS WATCHING IT, BUT ALSO AI.
SO IF THERE'S ANY SMOKE OR ANYTHING THAT COMES UP, IT STARTS PINPOINTING IT TO SEE IF IT'S A SMALL FIRE OR LARGE FIRE, WHETHER THERE'S NO ISSUE WHATSOEVER.
SO IT'S A GREAT SYSTEM THAT I THINK WE'RE, WE'RE PROBABLY GONNA BE TAKING THAT PATH ON.
CAN I ASK A QUESTION, KATE? HEY, WHAT'S OKAY? YEAH.
UM, SO JUAN, I WANTED TO SAY I WAS SO HAPPY TO SEE THIS BECAUSE WE HAD TALKED ABOUT THIS AT THE LAST COUPLE MEETINGS AND SO I'M GLAD THAT THE CITY'S, UH, THAT A IS MOVING FORWARD WITH THE ADDITIONAL, UM, CREWS.
UM, BUT, UH, YOU CAUGHT MY ATTENTION WHEN YOU'RE TALKING ABOUT USE OF DRONES.
UM, I'M OUT IN CIRCLE C AND AFTER THE STORM MARA THAT I CAME ACROSS AUSTIN RESOURCE RECOVERY CREWS OUT HERE, AND UH, THEY WERE, ONE GUY WAS FLYING DRONES, UH, OUT HERE TO TRY TO FIND, UH, YOU KNOW, TO TRY TO HELP DIRECT WHAT STREETS THEY WERE GONNA, THE CREWS WERE GONNA GO ON TO PICK UP STUFF.
SO SOMEBODY IN AUSTIN IS ALREADY USING DRONES? YEAH.
WE, WE DO USE DRONES, BUT THE DRONES THAT WE USE, JUST LIKE AUSTIN RE RESOURCE RECOVERY IS CALLED LINE OF SIGHT.
SO WE, THE, THE OPERATOR CAN'T BE OUT OF SIGHT OF THE DRONE, SO WE DO USE THEM FOR SOME OF THE CORRIDORS, BUT IT'S VERY LIMITED WHEN YOU DO THAT, WHERE IF IT'S NOT LINE OF SIGHT, AN INDIVIDUAL COULD STAND AT ONE POINT OF THE CIRCUIT, FLY THE WHOLE CIRCUIT WITH THE CAPABILITY TO DRONE AND COME BACK.
SO THAT'S WHAT WE WANT TO GET TO IS A MORE EFFECTIVE USE OF IT.
ANY OTHER QUESTIONS? I HAVE JUST ONE MORE, I,
[00:20:01]
SINCE WE HAD OUR CONVERSATION, I THINK IT WAS AT OUR LAST MEETING, MAYBE THE ONE BEFORE, I DON'T KNOW.I, I'VE STARTED PAYING MORE ATTENTION TO LIKE WHAT I, WHERE I SEE LINES, UM, YOU KNOW, MAYBE GOING KIND OF THROUGH TREES AND I'VE REALIZED THAT THERE'S ACTUALLY LIKE KIND OF A LOT THAT LIKE GO RIGHT THROUGH THE MIDDLE OF LIKE WHAT I WOULD CONSIDER KIND OF IMPORTANT LIKE STREET SHADE TREES.
AND I'M JUST WONDERING, IT DID GIVE ME A LITTLE PAUSE ON THE LIKE, YOU KNOW, KIND OF NEW POLICY, UM, OR REVIVE POLICY, WHATEVER WE WANNA CALL IT.
UM, AND I'M JUST WONDERING LIKE WHAT THE APPROACH IS SPECIFICALLY, LIKE, ESPECIALLY IN LIKE OUR URBAN CORE TO DEALING WITH THOSE KIND OF SITUATIONS.
LIKE, I DON'T KNOW IF YOU KNOW, LIKE LITERALLY WHERE THE LIKE LINE IS GOING, LIKE THROUGH THE MIDDLE OF A SUBSTANTIAL TREE.
LIKE IS THE PLAN TO JUST HACK IT OFF OR ARE WE MAKING EXCEPTIONS? WELL, AS AUSTIN ENERGY, WE DON'T DO ANYTHING WITH LINE.
WE DON'T PLAN ON CHANGING THE SCOPE ON THAT.
THE CITY IS DOING AN AUDIT ON THE VEGETATION MANAGEMENT AND WE, KATHY AND I HAD A DISCUSSION THAT IN PART OF HER AUDIT, THERE SHOULD BE A RECOMMENDATION ONTO WHAT IS THAT GONNA LOOK LIKE IN THE FUTURE.
I'VE WORKED WITH JOEL, UH, UH, MC NEW ON THE, THE WEST CAMPUS FOR TWO YEARS NOW.
AND BELIEVE ME, I I KNOW EXACTLY UH, TREES THAT GO THROUGH WITH A FULL BRANCH ON IT.
AND, AND I THINK WHAT IT'S GONNA COME DOWN TO IS YOUR INPUT AND THE CITIZENS INPUT ON, ON WHAT, HOW RISK ADVERSE THEY ARE ON IT.
UH, CAUSE IF YOU TAKE THOSE DOWN, THERE'S GONNA BE A LOT OF TREES WITH LIMBS THAT COME DOWN BECAUSE IT, IT IS MASSIVE.
BUT THE CITY AUDIT, FROM WHAT MY UNDERSTANDING IS GOING TO HAVE A REFERENCE OF THAT.
BUT AS FAR AS AUSTIN ENERGY, WE, WE DO NOT TOUCH THE COMMS LINES AND WE DON'T TRIM THE COMMS LINES.
WHAT IS THE TIMING OF THE AUDIT? UH, I THINK KATHY SAID SHE'S DOING A PRELIMINARY AND A MONTH AND I THINK THE FINAL IS SUPPOSED TO BE SEPTEMBER.
SO YOU'RE SAYING YOU, YOU THINK THAT THE ONLY ONES I'M SEEING ARE COMMS LINES AS OPPOSED TO ELECTRIC? YEAH, I I, UNLESS IT'S A A CIRCUIT THAT IS MASSIVELY OVERGROWN, I, I DON'T, AND YOU CAN DEFINITELY SEND ME AN ADDRESS IF YOU THINK YOU SEE A, A TREE LIMB GOING THROUGH THE, THE PRIMARY LINES.
BUT, UH, THE ONES THAT I KNOW OF ARE ON THE COMMUNICATION LINE PIECE.
BUT, UH, PLEASE SEND ME AN EMAIL IF YOU, IF YOU THINK AND I'LL GET, HAVE SOMEBODY CHECK IT OUT THAT POINT.
THIS IS ALL SCHEDULED MAINTENANCE, CORRECT? UH, DEFINED SCHEDULED MAINTENANCE, JEREMY? SO THIS IS STUFF THAT WE HAVE PLANNED FOR AND THAT WE'RE GOING OUT LIKE ON A SCHEDULE? CORRECT.
THERE WON'T BE ANY UNSCHEDULED.
ESSENTIALLY A CUSTOMER CALLS IN, I SEE A TREE TOUCHING THE PRIMARY OR CLOSE TO IT.
THESE CREWS WILL NOT BE DISPATCHED FOR THOSE TYPES OF CALLS.
IT, THE WAY THAT OUR, OUR VEGETATION MANAGEMENT WORKS IS WE PLAN OUT UP TO A YEAR, BUT IF A CUSTOMER CALLS IN AND HAS A CONCERN AND WE GO OUT AND IF IT'S NOT ONE THAT WE'VE WALKED DOWN, UH, WE WILL ABSOLUTELY CLEAR THAT SECTION UP FOR NOT ONLY THE, THE RELIABILITY BUT ALSO SAFETY, UH, THAT LIMB COMING DOWN TO AN ENERGIZED LINE AND LAYING ON THE YARD SOMEWHERE.
UH, WE DON'T WANT THAT EITHER.
AND THEN NUMBER SEVEN, THAT'S JUST THREE OF THE LARGER ONES EXTENDING THE CONTRACT? THAT'S CORRECT, SIR.
UM, SHOULD WE JUST VOTE ON ROBIN, SHOULD WE JUST VOTE ON THESE THREE THAT HAVE ELTON AND THEN WE'LL MOVE ON TO NINE OR? THAT'S UP TO YOU.
I MOVE THAT WE APPROVE FIVE, SIX, AND SEVEN.
DO I HAVE A SECOND? I'M SECOND.
UNANIMOUS VOTE APPROVING FIVE, SIX, AND SEVEN.
HEY GUYS, JUST REALLY APPRECIATE YOUR SUPPORT ON THAT.
IT'S GONNA GONNA PAY DIVIDENDS IN THE NEXT COUPLE OF YEARS, SO THANK YOU.
[9. Recommend ratifying additional funding for utility advanced meter infrastructure services with Landis+Gyr Technology Inc., in the amount of $2,000,000, authorize an amendment for continued services in the amount of $12,800,000, and extend the term by one year for a revised total contract amount not to exceed $69,977,434.]
NINE.HELLO, ELAINE VIELKA, ACTING VICE PRESIDENT OF THE ELECTRIC SYSTEM ENGINEERING AND TECHNICAL SERVICES.
SO TELL US WHAT THIS IS AS FAR AS THE LNG TECHNOLOGY, WHAT KIND OF UPGRADES IS IT? WHAT DOES IT DO TO IMPROVE OUR SITUATION? SO EVEN THOUGH I'M NEW TO THIS ROLE, I'M VERY FAMILIAR WITH ALL THE QUESTIONS THAT HAVE COME UP ABOUT THE, THE METERING INFRASTRUCTURE.
UM, THIS IS SIMPLY AN EXTENS AN EXTENSION OF OUR EXISTING TENURE CONTRACT, UM, FOR THE NEXT 12 MONTHS WHILE WE WORK THROUGH THE NEW CONTRACT WITH L N G AND, AND LOOK AT THE FUTURE AND THE GRID AND
[00:25:01]
THOSE OTHER TYPES OF THINGS THAT WE, WE NEED TO BE LOOKING AT THAT YOU'VE, UH, INQUIRED ABOUT AND THAT HAVE BEEN PART OF OUR ROADMAP.YEAH, SO THE CONCERN IS THAT WE SEEM TO HAVE HAD A BANDWIDTH, WELL, I'M NOT SURE IF YOU COULD CALL IT A BANDWIDTH ISSUE, IT JUST WASN'T TECHNOLOGICALLY DEFINED TO HELP OUT DURING URI FOR FINER GRAIN CURTAILMENTS.
AND ALSO LOOKING FORWARD AS FAR AS SOME ADDITIONAL BANDWIDTH.
CUZ IT SEEMS LIKE IT TAKES MANY HOURS TO PING TO UNDERSTAND WHO'S REALLY ON OR OFF.
YOU KNOW, THAT'S PART OF WHAT WE'RE LOOKING AT.
YOU KNOW, THE AMI INFRASTRUCTURE IS BUILT FOR METER READING.
IT JUST HAPPENS TO HAVE COMMANDS TIED TO IT.
SO, YOU KNOW, AS, AS PART OF THIS, THE GROUP IS AL ALSO BENCHMARKING AGAINST OTHER UTILITIES TO SEE TO WHAT LEVEL THEY'RE USING THEIR EXISTING AMI NETWORK.
ANY PRELIMINARY INSIGHTS FROM YOUR VISITS? NOT YET MORE TO COME, BUT THIS IS AN EXTENSION OF THE, AGAIN, THE 12 MONTH EXTENSION OF THE EXISTING CONTRACT.
SO WE WE'RE GONNA WANT TO SEE AN UPDATE ON THIS LATER ON.
OKAY, SO I MOVE FOR APPROVAL ON EIGHT.
DO I HAVE A SECOND? NINE? YOU MEAN NINE? NINE, SORRY.
BUT I DID HAVE A QUICK QUESTION CUZ THERE'S, UM, THERE'S THREE NUMBERS ON THERE.
SO ARE WE APPROVED, ARE WE RECOMMENDING THE 2 MILLION OR THE 12.8 MILLION? UM, IT'S THE, THE 12.8 IS, IS THE 12 MONTH EXTENSION TOTAL.
THE 2.8 IS A RATIFICATION THAT DOESN'T, UM, TYPICALLY COME TO THE COMMISSION, BUT IT'S, IT'S JUST A, UM, A LITTLE BIT OF A OVERSPEND ON THE EXISTING CONTRACT AGAINST THE CONTRACT AUTHORITY.
SO YOU'LL, YOU'LL AS THE EUC, UM, I GUESS IT IS ONE TOTAL, SO IT WOULD BE THE 14.8.
YEAH, I JUST WANTED TO CLARIFY JUST TO MAKE SURE I KNEW WHAT, UH, WHAT WAS THAT, WHAT I WAS APPROVING.
ANY OTHER QUESTIONS ONLINE? OKAY.
THANKS FOR FOGGING YOURSELF ON THAT.
OKAY, SO I MAKE A MOTION THAT WE APPROVE NUMBER NINE.
DO WE HAVE A SECOND?
AND TWO, AND THEN ONE ABSTENTION.
THEN WE MOVE INTO, I THINK THAT TAKES CARE OF ALL THE ITEMS, RIGHT? WE CAN MOVE TO NUMBER 10, STAFF
[10. Staff briefing of the Second Quarter Operations Report by Lisa Martin, Acting Deputy General Manager and Chief Operations Officer.]
BRIEFINGS WHILE HE'S, IS THIS ON? IS THIS ON? CAN YOU HEAR ME? THAT'S A YES.LET ME KNOW WHEN YOU'RE READY FOR ME TO START.
UH, GOOD EVENING, CHAIR, TULE, VICE CHAIR, WHITE, AND COMMISSIONERS.
MY NAME IS LISA MARTIN AND I AM THE ACTING DEPUTY GENERAL MANAGER AND CHIEF OPERATING OFFICER HERE TODAY TO PROVIDE A QUARTERLY OPERATIONS UPDATE FOR Q2 OF FISCAL YEAR 2023, ESSENTIALLY JANUARY, FEBRUARY, AND MARCH OF EARLIER THIS YEAR.
I'M GONNA START WITH AN EXECUTIVE SUMMARY, GIVE YOU, UH, SOME RELIABILITY AND ENVIRONMENTAL PERFORMANCE IN THE FORM OF GRAPHS, AND THEN END WITH AN UPDATE ON OUR GRID RESILIENCE STRATEGIC GOAL.
STARTING IN THE UPPER LEFT AND THEN GOING CLOCKWISE.
IN TERMS OF OUR EXECUTIVE SUMMARY, YOU'LL SEE, UM, THAT OUR GENERAL GENERATOR AVAILABILITY IS ON TARGET GIVEN THE, UH, SHOULDER MONTHS WHERE WE EXPECT TO SEE OUTAGES.
UM, AND THEN YOU'LL ALSO SEE THAT OUR RELIABILITY PERFORMANCE IS TRENDING UPWARD.
UM, IN THIS CASE, LOWER IS BETTER.
AND SO YOU'LL SEE THE, IN THE, OVER THE LONGER TERM, WE'RE TRENDING NEGATIVELY ON OUR RELIABILITY PERFORMANCE METRICS, YET WE DO REMAIN WELL ABOVE THE TEXAS UTILITY, UH, WELL BELOW IN THIS CASE, WHICH IS BETTER THE TEXAS UTILITIES AVERAGE.
UM, BUT AS EXTREME WEATHER BECOMES MORE PREVALENT, OUR RELI RELIABILITY NUMBERS ARE REFLECTING THAT, AND YOU'LL SEE THAT IN OUR TRENDS.
AND THEN IN TERMS OF OUR CARBON-FREE PRODUCTION, UH, FOR THE QUARTER, WE HAVE 84% CARBON-FREE GENERATION AS A PERCENTAGE OF LOAD, AND THEN FOR THE SAME TIME PERIOD, 57% RENEWABLE PRODUCTION AS A PERCENTAGE OF LOAD.
ALL RIGHT, SO HERE'S OUR GENERATOR AVAILABILITY.
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UM, ON THE FAR RIGHT, YOU'LL SEE THAT IN Q2 OF, UM, FISCAL YEAR 23, THIS WAS THE AVERAGE AVAILABILITY PER, UH, UNIT TYPE.AND THEN, UH, FOR COMPARISON PURPOSES, THE TARGETS DURING THE SUMMER WHEN THE UNITS ARE SUPPOSED TO BE GENERALLY ALWAYS AVAILABLE, UM, THAT'S WHAT OUR, OUR GOAL IS IN THE SUMMER.
UM, SO YOU CAN SEE HERE THAT SOUTH TEXAS PROJECT, THE NUCLEAR PLANT, WAS BELOW, UH, WHAT WE'D EXPECT IN SUMMER, BUT WE HAD A REFUELING OUTAGE THAT IMPACTED MAR MARCH.
AND SO THAT'S REFLECTED IN THESE NUMBERS.
AND AGAIN, THAT'S TYPICAL DURING A SHOULDER MONTH.
SO, SOME GRAPHS RELATED TO GENERATION AND LOAD ANALYSIS.
STARTING IN THE UPPER LEFT, YOU'LL SEE THE POWER GENERATION COST BY FUEL TYPE.
IN ORANGE, YOU'LL SEE, UH, THE RENEWABLE, UH, GENERATION IS THE LARGEST PERCENTAGE THERE.
BUT IF YOU, UH, BRING YOUR EYES TO THE RIGHT, YOU'LL SEE THAT THE GENERATION IN TERMS OF MEGAWATT HOURS COMING FROM RENEWABLE IS TWICE AS MUCH AS THAT COMING FROM NUCLEAR, WHICH IS SHOWN IN YELLOW.
AND NUCLEAR IS TWICE AS MUCH AS NATURAL GAS OR COAL, WHICH YOU SEE IN THE GRAY AND THE BLACK RESPECTIVELY.
OVERALL DURING Q2, OUR GENERATION IN TERMS OF MEGAWATT HOURS EXCEEDED OUR, UM, LOAD AND ALL THAT EXCESS, RIGHT? OF COURSE, IT ALL GOES INTO THE ERCOT MARKET IN TERMS OF THE PERCENTAGE OF LOAD DOWN, UM, IN THE BOTTOM RIGHT, UH, AGAIN, OUR RENEWABLE PERCENTAGE, 57% OF LOAD NUCLEAR ADDED IN ANOTHER 27%, AND THEN THE OTHER IN TH IS 16%.
AND THEN FINALLY, AS A POINT OF REFERENCE, THE TYPICAL PEAK, UH, SYSTEM DEMAND YOU'LL SEE IN Q2, UM, IS BETWEEN 2020 500 AT LEAST FOR THE LAST FOUR YEARS.
AND YOU'LL SEE THAT THE LAST COUPLE OF YEARS IT'S BEEN TRENDING DOWNWARD COMPARED TO THE PEAK IN 2021.
SO BEFORE YOU GO ON THAT, YES SIR, YOU THINK WE'RE READY FOR THE SUMMER? THE, UH, PUC CHAIRMAN WAS TALKING ABOUT HOW WE MAY HAVE A SHORTAGE OF SUMMER.
OUR, OUR PLANTS ARE ALL PREPPING FOR SUMMER READINESS AND, UH, WE INTEND TO ASSIGN AN ATTESTATION SAYING THAT WE HAVE DONE THE WEATHERIZATION AND ARE PREPARED AND READY TO GO.
SO DOING ALL THEIR OUTAGE AND, UM, MAINTENANCE WORK NOW TO PUT OUR BEST FOOT FORWARD THIS SUMMER.
I HAD A QUICK QUESTION, LISA, ON THE, ON THE PEAK WAS THAT WAS THE 21 JUST, WAS THAT WINTER STORM URI STUFF OR WAS THAT NOT SECOND? IS THAT, IS THAT BECAUSE OF THAT THE REASON WE'RE DOWN? OR IS IT OTHER ISSUES? SO, YEAH, NO, SO, SO JUST RELATIVELY, UH, IN FEBRUARY, UM, OF 2021, THAT WAS, UH, RIGHT WHEN WE HAD AN UNSEASONABLY COLD SNAP FOR A LONG PERIOD OF TIME.
AND SO THAT IS WHEN WE HIT OUR, OUR MAX PEAK.
SO NOW WE'RE MOVING INTO OUR DISTRIBUTION RELIABILITY METRICS.
UM, SADIE SAFETY AND KATIE, UM, THESE REFLECT THE DURATION OR FREQUENCY OF INTERRUPTIONS THAT OUR CUSTOMERS EXPERIENCE.
AND SO THIS SLIDE SHOWS OUR NUMBERS COMPARED TO THE TEXAS UTILITIES AVERAGE.
UM, AND WHEREAS YOU CAN SEE THAT OUR NUMBERS ARE MUCH LOWER THAN THE TEXAS UTILITIES AVERAGE, WE RECOGNIZE THAT A CUSTOMER'S EXPERIENCE IS WHERE THEY ARE.
AND SO UNLESS WE HAD CUSTOMERS WHO LIVED SOMEWHERE ELSE IN TEXAS AND THEN MOVED INTO AUSTIN ENERGY SERVICE TERRITORY, THEY MAY NOT APPRECIATE THE DIFFERENCE HERE.
UM, AND SO WE RECOGNIZE THAT PEOPLE SEE AND FEEL TRENDS AND CHANGES OVER TIME.
AND SO WE LOOK AT THOSE TRENDS AS WELL, UM, TO, UH, SEE IF WE'RE ON TRACK OR IF WE NEED TO MAKE ADJUSTMENTS.
SO NEXT SLIDE SHOWS THOSE TRENDS, AND HERE I'M GONNA HIGHLIGHT FOR YOU THE SAFETY METRIC, WHICH IS IN THE BOTTOM RIGHT.
AND SO THIS IS THE NUMBER OF INTERRUPTIONS THAT THE AVERAGE CUSTOMER HAD OVER THE LAST, UH, YEAR.
SO EACH ONE OF THESE, UH, BARS REPRESENTS A ROLLING 12 MONTH AVERAGE BY QUARTER.
AND SO AS YOU CAN SEE WITH THE SAFETY METRICS, AGAIN ON THE BOTTOM RIGHT THAT THIS IS TRENDING IN THE WRONG DIRECTION.
AND THERE ARE TWO BIG TAKEAWAYS FROM THAT.
FIRST, OF COURSE, WE NEED TO RAMP UP OUR EFFORTS ON GRID RESILIENCE, AND WE ARE, AND I'LL TALK ABOUT THAT, UM, ON THE STRATEGIC GOAL SLIDE AT THE END.
UM, BUT ALSO THIS SPEAKS TO THE IMPACT OF SEVERE WEATHER THAT'S HITTING OUR AREA MORE OFTEN.
AND SO WHILE THESE DATA EXCLUDES MAJOR EVENT DAYS, BUT AS WE SEE OURSELVES IMPACTED BY WEATHER THAT IS MORE, MORE SEVERE, THAT RAISES THE THRESHOLD OF WHAT A MAJOR EVENT DAY IS, WHICH IS ESSENTIALLY AN OUTLIER DAY.
AND SO MORE OF THE STORM WEATHER LIKE WE EXPERIENCED OVER THIS PAST WEEKEND AND THE WEEKEND BEFORE IS COMING INTO THESE NUMBERS.
AND SO, UM, WE'RE VERY FOCUSED BECAUSE, UM, WE REALIZE THAT OUR CUSTOMER'S EXPERIENCES ARE NOT JUST ABOUT BLUE SKY DAYS AND THAT STORM DAYS COMPOSE THE GREATEST HARDSHIP FOR OUR CUSTOMERS.
SO IT'S VERY IMPORTANT FOR US TO CONTINUE OUR GRID RESILIENCE STRATEGIC GOAL INITIATIVES.
AND AGAIN, WE'LL SPEAK TO THAT A LITTLE BIT MORE IN THE NEXT COUPLE OF SLIDES.
ON ONE THING HERE, UM, THIS EXCLUDES MAJOR EVENT DAYS, IF THERE'S SOME WAY THAT WE COULD GET A SNAPSHOT SOONER OR LATER ON,
[00:35:01]
ON COMPARISONS WITH MAJOR DAYS.AND, AND I KNOW THAT THOSE ARE ALL ANOMALIES, AND SO IT'S TOUGH TO MEASURE THAT, BUT IT WOULD JUST BE INTERESTING TO SEE THAT AND SEE HOW IT PLAYS IN, IN IT.
ANY QUESTIONS BEYOND THIS? OKAY.
ALL RIGHT, SO HERE, UM, YOU SEE THE CARBON-FREE GENERATION AS A PERCENTAGE OF LOAD THIS, UM, ON THE FAR RIGHT, MARCH, 2023, THIS IS WHERE YOU SEE THE, UM, 84% THAT I MENTIONED ON THE, UM, EXECUTIVE SUMMARY SLIDE.
BUT YOU CAN ALSO SEE, UM, WHAT THAT PERCENTAGE OF LOAD IS FOR EVERY, UM, MONTH OVER THE PAST YEAR.
AND SO AS I MENTIONED, ONE OF AUSTIN ENERGY'S STRATEGIC GOALS IS GRID RESILIENCE, AND WE HAVE STRATEGIC INITIATIVES THAT ARE INTENDED TO MOVE THE NEEDLE ON THOSE RELIABILITY METRICS WE WERE LOOKING AT, UM, EARLIER.
AND SO THE FIRST ITEM YOU SEE UP HERE, UM, WE'VE TALKED ABOUT BEFORE, ELTON MENTIONED IT, UM, TO SOME EXTENT AS WELL, IS, UM, IMPROVING DISTRIBUTION SYSTEM RELIABILITY.
AND IN DOING THAT, WE'RE IDENTIFYING RANKING AND ADDRESSING THE FEEDER MAINTENANCE IN THE AREAS WHERE WE HAVE HISTORICALLY, UM, THAT HAVE BEEN IMPACTED BY OUTAGES, WE SOMETIMES REFER TO THAT AS OUR UNDERPERFORMING FEEDER AREAS, AND THEN ALSO THOSE THAT ARE MOST SUSCEPTIBLE TO WILDFIRE RISK.
SO AUSTIN ENERGY HAS AN INTERNAL PROGRAM WORKING TOWARDS, IN DOING BETTER WITH DISTRIBUTION RELIABILITY METRICS.
UM, BUT WE ALSO CAN DO MORE AS WE SEEK EXTERNAL FUNDING SOURCES.
AND SO I WANNA HIGHLIGHT FOR YOU, UM, THAT LAST MONTH ABOUT, UH, YEAH, LAST MONTH AUSTIN ENERGY SUBMITTED A GRANT APPLICATION, UM, TO THE DEPARTMENT OF ENERGY FOR FUNDING UNDER THE GRID RESILIENCE AND INNOVATION PROGRAM, OR THE GRANT, THE GRIP GRANT PROGRAM.
AND WE HOPE TO HEAR, UH, LATER THIS SUMMER WHETHER OR NOT WE HAVE RECEIVED ANY AWARD IN THAT, UM, IN THAT EFFORT.
AND THEN WE ALSO SUBMITTED A GRANT APPLICATION THROUGH, UH, FEMA'S HAZARD MITIGATION PROGRAM.
UM, THIS IS THROUGH THE TEXAS DEPARTMENT OF EMERGENCY MANAGEMENT.
AND, UH, WE SUBMITTED AN APPLICATION IN DECEMBER OF 2021 AND RECEIVED NOTICE OF AN AWARD LAST, UH, WEEK.
UM, THIS IS FOR THE BUILDING RESILIENT INFRASTRUCTURE AND COMMUNITIES AWARD OR A BRICK AWARD.
AND SO WE ARE IN THE EARLY STAGES OF, UM, DOING ALL THE NECESSARY APPROVALS TO BE ABLE TO ACCEPT THAT FUNDING.
UM, ONE OF THE THINGS THAT'S FOR ABOUT JUST A MILLION DOLLARS IN TOTAL, AND ONE OF THE THINGS WE'RE HOPING TO DO WITH THAT WORK IS TO, UM, DO AN ASSESSMENT OF OUR ST OF OUR SYSTEM TO FIGURE OUT WHERE CAN WE PINPOINT AND HOW BEST CAN WE USE, UM, LIKE EXPAND OUR PROGRAM, KIND OF TO WHAT, UM, COMMISSIONER WHITE WAS SPEAKING ABOUT, HOW CAN WE TARGET OUR, OUR FUNDING AND OUR EFFORTS, UM, TO MAKE THE MOST IMPACT.
HEY, LISA, UM, HOW MUCH WAS THE, IS THE GRIP, UH, APPLICATION FOR, AND IS THERE SOME SORT OF A MATCHING REQUIREMENT OR IS IT JUST, IT'S STRAIGHT UP MONEY THAT WE CAN USE? THERE'S ALWAYS A MATCHING REQUIREMENT.
UM, THE REQUEST FOR THE AWARD IS JUST UNDER 100 MILLION AND IT'S ABOUT A 50% MATCH.
AND SO OURS IS, IS A LITTLE BIT OVER A HUNDRED MILLION.
LISA, LISA, UH, RANDY HERE IS, UH, CAN YOU SEND US A COPY OF A WORK PLAN, IN OTHER WORDS, UH, OR THE GRANT AWARD THAT WOULD PROVIDE US MORE DESCRIPTION OF THE PROGRAM, THE AWARD THAT WE RECEIVED FROM TETUM? THE RIGHT? UM, I, YES.
I THINK WE HAVE TO, UH, GO THROUGH THE OFFICIAL PROCESS TO GET APPROVAL.
UM, BUT I CAN FIND OUT WHAT INFORMATION I CAN SHARE.
YEAH, I, I MEAN, WHAT WE'D JUST LIKE TO LEARN MORE ABOUT, LEARN MORE ABOUT WHAT, WHAT'S, WHAT'S PLANNED AND IF THAT'S IN THE AWARD OR ELSEWHERE.
UM, THE SECOND, UH, PRO INITIATIVE THERE IS, UH, TITLED TRANSMISSION SYSTEM OF THE FUTURE.
THIS IS PART AND PARCEL OF THE 2023 RESOURCE PLAN, UM, WHERE WE ARE DOING WHAT Y'ALL KNOW AS THE TRANSMISSION STUDY, UM, TO INVESTIGATE THE WAYS TO ACHIEVE THAT PLAN'S GOALS WHILE MITIGATING THE IMPACTS OF A FUTURE WITHOUT, UH, GENERATION.
AND SO THAT, UH, TRANSMISSION STUDY, AS WE'VE REPORTED BEFORE, IS ON TRACK TO BE COMPLETED IN JUNE OF THIS YEAR, AND WE'LL BE BACK TO PRESENT IT IN JULY.
AND THEN, UM, RESILIENCY AS A SERVICE, I KNOW YOU'VE HEARD ABOUT THAT A NUMBER OF TIMES AS WELL.
UM, FOR THOSE OF YOU THAT ARE NEW TO THE COMMISSION, THIS IS A EFFORT TO ENABLE, UM, UH, CUSTOMERS CLASSES TO INSTALL LOCAL DISTRIBUTED GENERATION FOR RESILIENCY PURPOSES, WHILE ALSO GIVING US THE OPPORTUNITY TO PARTICIPATE IN THE ERCOT MARKET AND HAVE MORE LOCAL, UM, GENERATION AS NECESSARY.
UM, AND, AND SO THAT PROGRAM, WHICH WE'VE TALKED ABOUT BEFORE IS, UH, UM, UNDER OUR STRATEGIC INITIATIVE, UM, AND IT IS, UH, THE INITIAL PROGRAM OFFERING IS UNDERWAY THIS CALENDAR YEAR.
SO DO WE HAVE ANY INSTALLATIONS OF THAT YET? NO, SIR.
THERE'S A STUDY PHASE APPROACH, AND, UH, THEN
[00:40:01]
THE, AS YOU KNOW, IT'S A MULTI-PART AGREEMENT, SO THE CUSTOMER HAS TO WORK WITH, UH, THE GENERATING COMPANY AGREEMENTS HAVE TO BE PUT IN PLACE, SO NOT INSTALLED YET, YET.DOES ANYONE ELSE HAVE ANY FOLLOW UP QUESTIONS FOR ME? THANKS FOR THE PRESENTATION.
UM, I'M WONDERING IF YOU TRACK NOT JUST THE PERCENTAGE OF RENEWABLE ENERGY BY MONTH, BUT IF, IF YOU'RE TRACKING AT ALL, HOW THAT ALIGNS WITH LOAD ON A REALTIME BASIS.
SO YOU CAN ALWAYS GO OUT, UM, ON OUR WEBSITE AND THERE'S A REALTIME TRACKER.
IS THAT WHAT YOU'RE TALKING ABOUT? WELL, I SHOULDN'T HAVE SAID REALTIME.
I GUESS, DO YOU TRACK THAT OVERTIME? IS THAT A STAT THAT WE COULD GET, LIKE RENEWABLE ENERGY IS, YOU KNOW, I DON'T KNOW, COVERING WHATEVER PERCENTAGE OF LOAD, WHATEVER NUMBER OF HOURS OF THE YEAR? YOU KNOW, I, I'M NOT SURE EXACTLY HOW TO, UH, STRUCTURE THAT, BUT I'M, I'M WONDERING IF THAT IS BEING CALCULATED OR LOOKED AT.
I ASK, BECAUSE SOMETIMES I'VE HAD PEOPLE ASK ME ABOUT, UM, YOU KNOW, KINDA LIKE THE NEXT PHASE OF GRAIN CHOICE MAYBE BEING, UM, SOMETHING THAT, THAT IS, THAT IS MORE TIED TO LIKE, REAL TIME CLEAN ENERGY DELIVERY AS OPPOSED TO JUST, UM, YOU KNOW, NET KILOWATT HOURS.
SO I'M JUST WONDERING LIKE WHERE WE'RE STANDING ON THAT NOW.
I THINK I UNDERSTAND YOUR QUESTION.
LET ME GO BACK AND, UM, ASK AND CHECK, SEE WHAT KIND OF DATA WE HAVE OVER TIME AND I CAN CIRCLE BACK.
AND ANY QUESTIONS FROM ONLINE? ALL RIGHT, THANKS FOR YOUR TIME.
WELL, JUST, THIS IS MORE OF A, A GENERAL QUESTION, BUT THANKS FOR, UM, THE PRESENTATION AND THANKS FOR THE INFORMATION ABOUT THE COST OF THE DIFFERENT FUEL SOURCES VERSUS THE PERCENTAGE.
SO I NOTICED, UM, YOU KNOW, THE RENEWABLE COST WAS ABOUT 66% AND WAS PROVIDING, PROVIDING ABOUT 50 OR 7% AS A PERCENTAGE OF LOAD.
HAVE YOU GUYS EVER DONE AN ANALYSIS TO SEE, IS THAT, UM, IS IT MAINLY THE OLDER RENEWABLE CONTRACTS THAT MIGHT COST US A LITTLE MORE THAN THE ENERGY THAT'S BEING PROVIDED, OR HAVE YOU DONE ANY KIND OF ANALYSIS? I'M, I'M SORT OF ASSUMING THE, THE MORE RECENT CONTRACTOR CONTRACTS ARE MORE IN THE MONEY AS COMPARED TO SOME OF THE OLDER PPAS WE HAVE.
IS THAT GENERALLY TRUE, OR IT JUST DEPENDS ON THE, IT REALLY DEPENDS ON JUST THE, YOU KNOW, HOW THE MARKET'S DOING AT THAT PARTICULAR TIME.
IS THERE ANY GENERAL STATEMENTS THAT CAN BE MADE ABOUT THE COST OF RENEWABLES, WHETHER THEY'RE MAKING US MONEY OR WHETHER THEY'RE COSTING US MORE MONEY? COMMISSIONER REID, I, I, I APOLOGIZE, BUT I'LL HAVE TO ASK.
UM, AND CIRCLE BACK WITH, UH, VICE PRESIDENT ERICA BIERK AND GET BACK TO YOU.
THANKS OURS ANY MORE FROM ONLINE? ALL RIGHT, THANK YOU, LISA.
SECOND QUARTER FINANCIAL, NO, WE'RE IN, UM, SECOND QUARTER FINANCIALS.
I'M A DIRECTOR OF FINANCE HERE AT THE, UM, UTILITY, AND I'M PRESENTING TO YOU OUR UNAUDITED RESULTS FOR THE SECOND QUARTER OF FISCAL YEAR 23.
OUR, UH, JUST TYPICAL DISCLAIMER FOR YOU, UH, LETTING YOU KNOW THAT THE INFORMATION I'M PRESENTING IS UNAUDITED AND CONTAINS FORECASTED INFORMATION AS WELL THAT IS SUBJECT TO CHANGE.
UM, WE ARE PROVIDING FOR YOU A LINK TO OUR FY 22 FINANCIALS, UM, WHICH WE'RE AUDITED IN, FINALIZED IN MARCH OF THIS FISCAL YEAR.
[11. Staff briefing of the Second Quarter Financial Report by Stephanie Koudelka, Finance Director.]
FOR OUR QUARTERLY FINANCIAL REPORT.UM, IT ALSO INCLUDES A MARKET SECTION WHERE I'LL GIVE YOU SOME INFORMATION ON OUR REGULATORY CHARGE, ONE OF OUR PASS THROUGH RATES.
I'LL START WITH THE EXECUTIVE SUMMARY THIS EVENING.
UM, STARTING AT THE TOP LEFT FOR OUR FINANCIAL POLICIES, WE ARE IMPARTIAL COMPLIANCE WITH THOSE POLICIES FOR THE RESERVES PORTION OF THE COMPLIANCE.
UM, OUR INDIVIDUAL RESERVE BALANCES ARE, UM, SITTING BELOW MINIMUM TARGETS.
IN ADDITION, WE DO HAVE A POLICY, UM, THAT SAYS OUR COMBINED CASH AND RESERVES WILL SIT AT A MINIMUM FOR FY 23, IT'S 520 MILLION, AND AT MARCH
[00:45:01]
OUR TOTAL IS 413 MILLION.MOVING ACROSS THE PAGE, UH, RELATED TO OUR WORKING CAPITAL, OUR CASH BALANCE IS ABOUT 130 MILLION, AND THAT'S A DROP OF ABOUT A HUNDRED MILLION FROM A YEAR AGO.
THAT'S PRIMARILY DUE TO HIGHER POWER SUPPLY COSTS THAT WE SAW OVER THE FISCAL YEAR, AND WE ARE STILL CURRENTLY UNDER RECOVERED IN THAT RATE.
AND THAT'S DUE TO THOSE HIGHER MARKET AND CONGESTION PRICES AND, AND COSTS THAT WE SAW ON THE SUMMER OF 2022.
DURING THE PERIOD OVER THE 12 MONTHS.
WE DID ALSO RETURN THE WHOLESALE OVER COLLECTION RELATED TO WINTER STORM, UH, URI IN 2021, OUR OPERATING REVENUE IS SITTING AT 753 MILLION, UM, AT MARCH, AND THAT'S ABOUT 2% LESS THAN BUDGET.
WHILE OUR OPERATING COSTS WITH TRANSFERS WAS 844 MILLION, THAT SAW AN UNFAVORABLE VARIANCE AS WELL OF ABOUT 3%.
UM, THAT INCREASE IN EXPENSE IS PRIMARILY DUE TO WINTER STORM OR COST FOR OUR BOND RATING.
JUST QUICK, SORRY, QUICK QUESTION.
I KNOW I THINK WE'VE HAD THIS CONVERSATION BEFORE MM-HMM.
SO, UM, OUR PRELIMINARY ESTIMATES FOR THE STORM COST THAT WE'VE INCURRED IS ABOUT 19 MILLION.
UM, PRESIDENT BIDEN DID PRELIMINARILY APPROVE THE STATE'S REQUEST FOR MAJOR DISASTER DECLARATION.
AND SO IT'S YET TO BE DETERMINED HOW MUCH WE'LL GET BACK, BUT WE'RE ESTIMATING AROUND 15 MILLION OF THE 19 THAT WE'VE SPENT.
AND WOULD THAT, WOULD THAT THEN BE REFLECTED IN THESE NUMBERS? NOT YET.
SINCE IT'S A CONTINGENT RECEIVABLE TO RECEIVE FROM THIS FEDERAL IN THE FUTURE, IT WOULD BE CORRECT.
UM, PROB AT LEAST A 12 TO 18 MONTH TURNAROUND ON THAT RECOVERY.
UM, MOVING TO THE BOND RATING, BOTTOM LEFT, UM, ALL THREE MAJOR CREDIT RATING AGENCIES REVIEWED AUSTIN ENERGY, UM, IN CONJUNCTION WITH OUR BOND SALE THAT WE HAD IN APRIL.
UM, ALL THREE REAFFIRMED OUR CREDIT RATINGS.
WE DO SIT AT AA MINUS PER S AND P AND FITCH AND AA THREE PER MOODY'S.
AND FINALLY, THE POWER SUPPLY ADJUSTMENT, UM, PASS THROUGH IS CURRENTLY UNDER RECOVERED BY 54 MILLION ON A RATES BASIS.
UM, AS YOU KNOW, WE RESET THAT RATE IN NOVEMBER TO RECOVER ABOUT 102 MILLION, UM, RELATED TO THOSE HIGH MARKET CONGESTION AND COMMODITY COSTS WE SAW IN 2022, THE RATE HAS BEEN OVER RECOVERING AS EXPECTED DURING THE YEAR.
WE DID HAVE ONE EXCEPTION IN DECEMBER WHEN WE SAW SOME PRETTY HIGH LOAD IN MARKET PRICES DUE TO A WINTER STORM.
UH, WE'LL HAVE MORE ON THE POWER SUPPLY ADJUSTMENT, UM, IN THE CO UPCOMING SLIDE.
THANKS FOR OUR FINANCIAL POLICIES.
UM, THESE ARE ADOPTED BY ORDINANCE EACH YEAR DURING OUR BUDGET PROCESS.
UM, FOR DEBT POLICIES WE'VE CATEGORIZED, UM, WE ARE IN COMPLIANCE AT MARCH.
OUR DEBT SERVICE COVERAGE IS, UH, 2.1 TIMES VERSUS THE POLICY MINIMUM OF 2.0.
UM, I DO WANNA NOTE THOUGH THAT ALTHOUGH WE'RE ABOVE THE POLICY MINIMUM, WE HAVE A DEBT BELOW THAT.
IN RECENT QUARTERS, WE'VE JUST HAD A TEMPORARY INCREASE DUE TO HOTTER THAN NORMAL WEATHER WE EXPERIENCED IN 2022 FOR OUR RESERVE POLICIES I JUST MENTIONED WE'RE NO LONGER IN COMPLIANCE WITH INDIVIDUAL OR COMBINED RESERVES.
AND FOR OPERATING POLICIES, WE SEE FULL COMPLIANCE FOR THOSE.
SO HOW LONG DO YOU THINK IT'LL BE BEFORE THE RESERVES GET UP TO THAT MINIMUM LEVEL? SO IN OUR FORECAST, WE'VE STARTED FUNDING, I BELIEVE IN 24, AND WE SEE FULL COMPLIANCE IN 28 20 28 20.
OUR BOND RATING, UM, AS I JUST MENTIONED, WE ARE AT AA MINUS PER STANDARD AND PORES.
I'LL MOVE THROUGH THE KPIS THAT WE USE TO MEASURE OUR BOND RATING.
UM, FOR DAYS CASH ON HAND, WE'RE CURRENTLY SITTING AT 104 DAYS, WHICH IS BELOW THE POLICY MINIMUM OF ONE 50.
THAT'S DUE MOSTLY TO LOWER MARGINS THAT WE SAW RELATED TO UNDER RECOVER OF UNDER RECOVERY OF POWER SUPPLY COSTS.
AND ALSO IMPACTED BY, UM, MAURA COSTS THAT WE INCURRED.
OUR DEBT SERVICE COVERAGE IS UP FOR THE PERIOD DUE TO THAT INCREASED USAGE THAT WE SAW.
UM, GIVEN THE TIMING OF THE BASE RATE INCREASE, UM, WE DID ANTICIPATE THE BASE RATE INCREASE TO BE IMPLEMENTED IN JANUARY, AND UM, IT WAS EFFECTIVE MARCH 1ST, AND OUR CAPITALIZATION,
[00:50:01]
UH, RATIO IS STEADY AT 56%.AUSTIN ENERGY HAS TWO AFFORDABILITY GOAL METRICS.
THE FIRST, UM, IS THE AFFORDABILITY METRIC, AND THAT'S WHERE WE SEEK TO MAINTAIN SYSTEM AVERAGE RATES AT OR BELOW 2% OF AN ANNUAL COMPOUND GROWTH RATE.
AND WE HAVE CONSISTENTLY MET THIS METRIC SINCE 2013.
THE NEXT ONE IS OUR COMPETITIVENESS METRIC, WHICH SEEKS TO MAINTAIN AVERAGE ANNUAL SYSTEM RATES IN THE LOWER 50% OF TEXAS UTILITIES, UM, THAT WE BENCHMARK OURSELVES AGAINST.
WE'RE ALSO MEETING THAT METRIC, UM, WITH THE LATEST DATA AVAILABLE, WHICH IS 2021 PER THE E I A.
AND, UM, WITH THAT DATA WE HAVE MAINTAINED RATES AT 12.6% BELOW THAT TARGET.
THE NEXT SECTION THAT WE HAVE, UM, FOR YOU, IT FOCUSES ON BUDGET TO ACTUAL PERFORMANCE.
I'LL START WITH, UH, RETAIL, UM, GIGAWATT HOUR SALES.
UH, RETAIL SALES FOR THE FISCAL YEAR IN TOTAL, WERE 3% OVER FORECAST AND OF COURSE THAT'S DUE TO THE WEATHER THAT WE SAW.
UH, MOST OF THE FLUX IS DUE TO THAT COLDER DECEMBER FOR FEBRUARY AND MARCH.
WE DO HAVE SOME TIMINGS TIMING RELATED TO, UH, LOAD AND BILLS FOR THE MONTH.
UM, WE DID SEE LOWER LOAD IN FEBRUARY WITH THE STORM, WHICH DIDN'T BILL UNTIL MARCH.
UM, AND THAT'S WHY YOU'RE SEEING THE UNFAVORABLE MARCH VARIANCE JUST AS A BENCHMARK FOR THE FISCAL YEAR IN TOTAL.
WE'RE SLIGHTLY OVER, UM, IN TOTAL BECAUSE OF THAT FIRST QUARTER WEATHER, WHICH IS, UH, OFFSETTING SOME OF THAT STORM LOAD LOSS THAT WE SAW IN FEBRUARY.
ON THE OPERATING REVENUE SIDE, UM, AT THE END OF THE SECOND QUARTER, WE WERE 2% BELOW OUR FORECASTED BUDGET AMOUNT.
UM, THAT'S MAINLY DUE TO BASE REVENUE COMING IN AT 4% BELOW BUDGET.
AS I MENTIONED, UM, THE, THE BUDGET DID INCLUDE AN ASSUMPTION THAT BASE RATES WOULD BE IN EFFECT IN JANUARY VERSUS THE ACTUAL EFFECTIVE DATE OF MARCH 1ST.
NEXT SLIDE ON, UH, THE EXPENSE SIDE.
UM, BEFORE OUR TRANSFERS, WE DID COME IN ABOVE OUR FORECAST BY 4%.
AGAIN, THAT'S MOSTLY DRIVEN BY THOSE EMERGENCY SERVICES THAT WE PROVIDED DURING THE WINTER STORM IN FEBRUARY.
ANY QUESTIONS ONLINE? UM, I HAVE AN ANNOUNCEMENT, WHICH IS, I'M GONNA GO HERE AND WATCH MY DAUGHTER PLAN THIS MAC CALLUM THING, AND THEN HOPEFULLY I'LL COME BACK IN LIKE HALF AN HOUR.
UM, BUT I THINK YOU'VE GOT A QUORUM, CORRECT? SO I CAN LEAVE FOR A LITTLE BIT? YES.
IS THAT CORRECT, ROBIN? YOU HAVE A QUORUM.
OKAY, WELL, I'M GONNA LEAVE FOR A WHILE AND COME BACK.
UM, HERE WE PRESENT A FUND SUMMARY, WHICH IS, UH, MOSTLY A CASH BASIS OF ACCOUNTING AND FINANCIAL REPORTING.
UM, WE DO SEE POSITIVE RESULTS BEFORE THE, UH, TRANSFERS THAT WE MAKE TO THE CITY FOR THINGS LIKE ADMINISTRATIVE SERVICES AND THE GENERAL FUND.
THE INTERNAL, UH, TRANSFERS THAT YOU SEE HERE OF 45 MILLION THROUGH MARCH ARE, UM, CASH THAT WE USE TO COVER OUR CONSTRUCTION THAT WE FUND FROM OPERATIONS.
I DID HIGHLIGHT THAT, UM, AUSTIN ENERGY ENDED THE QUARTER WITH A DEFICIENCY OF 91 MILLION COMPARED TO THE FORECASTED DEFICIENCY OF 48.
UM, WE DO NORMALLY SEE A DEFICIENCY AT THIS TIME OF YEAR.
IT'S, UM, EXAGGERATED, UH, MOSTLY DUE TO THE THINGS I'VE MENTIONED, LIKE THE WINTER STORM COSTS THAT WE INCURRED AS WELL AS THE LOWER THAN EXPECTED REVENUES DUE TO THE TIMING OF THE BASE RATE IMPLEMENTATION.
THIS IS A DEPICTION OF OUR POWER SUPPLY ADJUSTMENT PASS THROUGH.
UM, THE BLUE LINE REPRESENTS BUILD, UH, PSA REVENUE, WHICH RECOVERS THOSE POWER SUPPLY COSTS.
UM, YOU'LL SEE THAT COST EXCEEDED BUDGET IN DECEMBER, UM, AND EVEN WITH THE RATE INCREASE THAT WE IMPLEMENTED, WE WERE UNDER COLLECTED DUE TO THAT COLD WEATHER, UM, CONTRIBUTING TO HIGHER PRICES, UM, IN THE MARKET.
WE'VE OVER RECOVERED EACH MONTH, UM, IN THE SECOND QUARTER AS PLANNED.
AND AGAIN, WE SIT AT ABOUT 54 MILLION UNDER RECOVERED ON A RATE BASIS.
THIS IS THE COST PIECE OF OUR POWER SUPPLY ADJUSTMENT.
UM, AS YOU'LL SEE ON THE LEFT IN ORANGE, UM, IT COSTS US 1.1 BILLION TO PROCURE OUR LOAD FROM ERCOT.
UM, THE GREEN BAR ON THE RIGHT REPRESENTS WHAT WE PASS THROUGH TO OUR CUSTOMER.
UM, SO THAT'S OFFSET BY ABOUT 50%
[00:55:01]
FOR REVENUE, UM, FROM OUR OWNED GENERATION, UM, PPAS AND OUR BILATERAL CONTRACTS.FOR OUR CAPITAL IMPROVEMENT PLAN, WE'VE SPENT AROUND 34% OF THE SPEND PLAN FOR 23.
UM, WE DO EXPECT SPEND TO RAMP UP LATER IN THE FISCAL YEAR IN THE GENERAL CATEGORIES AS WELL AS DISTRICT COOLING.
UM, BUT WE'RE ALSO CURRENTLY DEVELOPING AN, UM, UPDATED ESTIMATE FOR SPIN FOR THE FISCAL YEAR, UM, ON THE RIGHT THAT REPRESENTS HOW WE FUNDED OUR CAPITAL WITH AROUND 66% CASH, WHICH INCLUDES CONTRIBUTIONS FROM OUR CUSTOMERS, UM, WHICH TOTALED 29 MILLION AS OF THE END OF THE QUARTER.
AND OUR STRATEGY IS TO KEEP THAT DEBT FINANCING AT AROUND 50%.
THE NEXT TWO SLIDES THAT I'LL SHOW YOU ARE, UH, GAP BASIS OF ACCOUNTING AND FINANCIAL REPORTING.
I'LL START WITH A BALANCE SHEET ON THE LEFT.
THIS IS A HIGH LEVEL ROLL UP OF THE BALANCE SHEET.
UM, I HAVE HIGHLIGHTED AGAIN JUST THE DECREASE IN CASH THAT WE'VE SEEN SINCE LAST YEAR.
AGAIN, PRIMARILY DUE TO THE UNDER RECOVERY OF POWER SUPPLY COSTS AND THE OTHER OPERATING COSTS THAT WE'VE SEEN, UM, INFLATED OVER THE YEAR.
UM, ON THE RIGHT SIDE I'M SHOWING WORKING CAPITAL AND RESERVES BY INDIVIDUAL BALANCES, UM, COMPARED TO THEIR TARGETS, OUR WORKING CAPITAL IS SITTING JUST UNDER THE MINIMUM AND INDIVIDUAL BALANCES ARE UNDER AS WELL.
AND FINALLY, OUR COMMERCIAL PAPER BALANCE OUTSTANDING IS 210 MILLION AT THE END OF MARCH.
UM, JUST AS AN UPDATE TO THAT, UM, AUSTIN ENERGY DID REFINANCE THE EXEMPT PORTION OF THIS SHORT-TERM PAPER TO LONG-TERM DEBT IN APRIL.
OUR INCOME STATEMENT ON THE LEFT IS A HIGH LEVEL ROLL UP.
IT SHOWS OUR NON-POWER SUPPLY OPERATING REVENUES INCREASED, UH, MOSTLY DUE TO WEATHER AS WELL AS AN INCREASE TO OUR TRANSMISSION RATE.
AND WE HAD A NEW DISTRICT COOLING PLANT COME ONLINE.
WE DID SEE NON-POWER SUPPLY COST UP AS WELL.
AND DUE TO AGAIN, MARA AND SOME TRANSMISSION COST INCREASES, OUR PASS THROUGH RATES ARE SHOWING UNDER RECOVERED FOR OUR POWER SUPPLY ADJUSTMENT AS WELL AS OUR REGULATORY CHARGE AND OVER RECOVERY AND COMMUNITY BENEFIT CHARGES.
UH, THE BAR CHART AT THE BOTTOM RIGHT SHOWS YEAR OVER YEAR CUSTOMER COUNT, WHICH GREW BY ABOUT 2%, WHICH IS IN LINE WITH PROJECTIONS.
OUR SALES, AS YOU CAN SEE, HAVE, UM, RISEN JUST SLIGHTLY, BUT PRETTY MUCH STAYED, UH, RELATIVELY FLAT OVER THE FISCAL YEAR.
CAN WE STAY ON THE PASS THROUGH FOR A SECOND? SURE.
SO LAST YEAR WE WENT THROUGH INCREASING THE PASS THROUGH WITH THE PSA MM-HMM.
UM, SO WE ARE A LITTLE BIT AHEAD OF SCHEDULE.
WE'RE AT 54 MILLION OF 1 0 2 AS OF THE END OF THE QUARTER.
UM, PART OF THAT IS ACCELERATED RECOVERY FROM THE RECEIPT OF THE BRAZOS CLAIM AS WELL AS JUST MILDER, UH, MARKET CONDITIONS FOR THE FIRST HALF OF THE FISCAL YEAR.
SO WE ARE ON A GOOD TRACK, UM, TO RECOVER THAT BACK FROM THE CUSTOMER.
AND FINALLY, UM, I HAVE A COUPLE OF SLIDES JUST FOR INFORMATION ONLY RELATED TO OUR REGULATORY CHARGE.
UM, I WILL START WITH A BRIEF OVERVIEW OF THE APPLICATION OF THE RATE, UM, PER THE TARIFF.
UH, THE CHARGES, RECOVERY COMPONENTS INCLUDE WHOLESALE TRANSMISSION COST.
UH, THOSE ARE COSTS THAT AUSTIN ENERGY, UM, AS A LOAD SERVING ENTITY PAYS TO TRANSMISSION SERVICE PROVIDERS OR TSPS FOR USE OF THEIR TRANSMISSION INVESTMENTS.
UM, THOSE COSTS, UM, THAT WERE RECOVERED IN THAT RATE WERE ABOUT 170 MILLION LAST FISCAL YEAR.
UH, THOSE COSTS ARE OFFSET BY CONGESTION, REVENUE RIGHTS, AUCTION REVENUE, UM, THAT IS REVENUE THAT WE RECEIVE, UM, AND DISTRIBUTED BY ERCOT ON A LOAD RATIO SHARE.
UM, WE'RE ALSO RECOVERING, UM, FEES WHICH INCLUDE ERCOT ADMINISTRATIVE AND FEES FOR RELIABILITY FUNCTIONS, UM, KNOWN AS THE ELECTRIC RELIABILITY ORGANIZATION BILLING.
THE REGULATORY CHARGE, UH, AGAIN, PRIMARILY RECOVERS THOSE TRANSMISSION
[01:00:01]
COSTS THAT AUSTIN ENERGY INCURS TO SERVE OUR LOAD.UM, THE PUBLIC UTILITY COMMISSION OF TEXAS REGULATES THESE CHARGES, UM, WHICH ARE UPDATED ANNUALLY OR ON AN INTERIM BASIS WHERE THOSE TSPS CAN, UH, RECOVER THEIR TRANSMISSION INVESTMENT COSTS.
AND LASTLY, UH, JUST TO SHOW YOU THE INVESTMENTS MADE TO THE SYSTEM OVER THE PAST COUPLE OF DECADES, UM, IT DOES INCLUDE MATERIAL INVESTMENTS THAT WERE MADE AND PUT INTO SERVICE IN 2014.
THAT'S WHEN THE COMPETITIVE RENEWABLE ENERGY ZONE OR CRES WAS PLACED IN SERVICE.
OF COURSE, SUPPORTING THAT UTILITY SCALE.
WHEN, UH, RENEWABLE DEVELOPMENT, AS YOU CAN SEE, INVESTMENTS CONTINUE TO BE MADE TO THE SYSTEM AS LOAD AND RATES HAVE GROWN.
AND JUST FOR REFERENCE, AUSTIN ENERGY PAYS A RATE OF APPROXIMATELY $64 PER KW AND AGAIN, INCURRED ABOUT 170 MILLION AND COSTS LAST FISCAL YEAR.
SO HOW LONG DOES IT TAKE TO PAY OFF KRES? GOSH, I DON'T KNOW THE ANSWER TO THAT QUESTION.
UM, I DON'T KNOW HOW LONG THAT IT RECOVERY TAKES, BUT NORMALLY AS YOU HAVE THOSE ASSETS PLACED INTO SERVICE, THEY'RE PROBABLY A 30 TO 40 YEAR, UM, ASSET.
SO, UM, I DON'T KNOW EXACTLY THE TIMING OF WHEN THAT 2014 INVESTMENT WILL BE PAID OFF.
AND THEN WITH THESE HIGHER COSTS, THIS MAKES DR PROGRAMS EVEN MORE ADVANTAGEOUS.
DOES ANYONE WANNA HELP ME WITH THAT ONE? CERTAINLY THOSE PROGRAMS DO, UM, OFFSET OR, UM, HAVE IMPACT TO, UM, THE POSTAGE STAMP RATE.
UM, SO AT WHAT RATE THEY DO, I'D HAVE TO GET BACK TO YOU ON MORE DETAIL, BUT CERTAINLY THEY HAVE AN IMPACT ON OUR LOAD.
AND IS THIS JUST TRANSMISSION OR IS THIS TRANSMISSION AND ALSO OTHER ERCOT OVERHEAD? THIS IS TRANSMISSION.
UM, ONLY, IT DOESN'T INCLUDE ERCOT, RUCKING, EVERYTHING.
THIS SHOULD JUST BE THE TRANSMISSION INVESTMENT.
ANY QUESTIONS ONLINE? OKAY, NEXT SLIDE.
ALL RIGHT, ANY QUESTIONS HERE? OKAY, THANK YOU.
ANY OTHER QUESTIONS? OKAY, THANK YOU.
HAVE WE GO TO 12 STAFF BRIEFING
[12. Staff briefing on the Line Extension Policy and Contributions in Aid of Construction by Rusty Maenius, Vice President of Finance and David Tomczyszyn, Director of Transmission & Distribution Engineering]
ON THE LINE EXTENSION POLICY AND CONTRIBUTIONS IN AID? UH, GOOD EVENING.UH, TODAY WE'RE HERE TO PRESENT ON AUSTIN ENERGY'S LINE EXTENSION POLICY, APPLICATION, AND IMPACT.
I'M DIRECTOR OF TRANSMISSION SUBSTATION ENGINEERING, AND MY CO-PRESENTER IS, UH, RUSTY MANUS, WHO IS VP OF FINANCE.
SO HE'LL BE COMING UP HERE SHORTLY.
AUSTIN ENERGY'S LINE EXTENSION POLICY TODAY DIRECTS AUSTIN ENERGY TO COLLECT 100% OF THE COST FOR LINE EXTENSIONS WITH THE EXCEPTION OF QUALIFIED AFFORDABLE HOUSING.
THIS IS REFERRED TO AS CONTRA, UH, CONTRIBUTIONS AND AID OF CONSTRUCTION OR KAYAK.
UH, THE EXTENSION IS FROM AUSTIN ENERGY'S EXISTING INFRASTRUCTURE TO THE CUSTOMER'S POINT OF SERVICE TO SERVE THE REQUESTED LOAD.
SO HOW DOES THIS COMPARE TO THE PAST? NEXT SLIDE, PLEASE.
PRIOR TO OCTOBER 1ST, 2014, AE GENERALLY PROVIDED AT NO COST, AN EXTENSION OF 300 FEET, A BASIC SINGLE SERVICE, UH, SINGLE PHASE, 1 22 40 OVERHEAD ELECTRIC SERVICE ON WOOD POLES AFTER OCTOBER 1ST, 2014.
TO THE PRESENT, AE COLLECTS FULL COST RECOVERY OF LINE EXTENSIONS VIA THE KAYAK WITH THE EXCEPTION OF QUALIFIED AFFORDABLE HOUSING.
NEXT I'LL GIVE A BRIEF OVERVIEW OF THE DESIGN PROCESS AND WHERE KAYAK FITS IN THE FIRST BOX.
UH, GOING FROM LEFT TO RIGHT, THE DESIGN INTAKE, WHICH BASICALLY INCLUDES, UM, THE CUSTOMER, UH, FILLING OUT AN ELECTRIC SERVICE PLANNING APPLICATION, THE E S P A AND REQUESTING SERVICE, TALKING ABOUT WHAT TYPE OF LOAD THEY NEED AND AT WHAT LOCATION.
UH, NEXT IT MOVES IN, UH, TO THE DESIGN PHASE.
ONCE WE'VE COLLECTED ALL THE INFORMATION THE DESIGNER MEETS WITH THE CUSTOMER AND THEN DETERMINES HOW TO BRING POWER TO THE SITE.
THE NEXT PART, OUR NEXT, UH, BOX IS THE CUSTOMER QUOTE.
WITH THAT IS AT THE CONCLUSION OF THE DESIGN, A, UH, QUOTE IS GENERATED AND PROVIDED THE CUSTOMER.
AND WITH THAT, THE CUSTOMER PAYS THE KAYAK, UH, IS PART OF MOVING THE,
[01:05:01]
UH, THE, UH, JOB TO THE CONSTRUCTION PHASE OR, OR WORK MANAGEMENT.NEXT, IT'S RELEASED TO WORK MANAGEMENT, UM, THE CUSTOMER FILES, UH, ANY PERMITS, UM, TO, TO MEET THE NEEDS OF THE, THE PROJECT.
UH, NEXT WE MOVE ON TO CONSTRUCTION, WHICH IS, UH, CIVIL, ALL CIVIL INFRASTRUCTURE FOR NEW SERVICES, UM, IS COMPLETED BY THE CUSTOMER.
UM, AUSTIN ENERGY DOES INSPECT THAT WORK, THOUGH.
NEXT, IT MOVES ON TO A CONSTRUCTION, A CONSTRUCTS THE POLES, WIRES, TRANSFORMERS, WHATEVER EQUIPMENT.
IT'S, IT'S REQUIRED TO BRING SERVICE TO THE SITE.
AND FINALLY, IS THE, IS INSPECTIONS AND, AND ENERGIZATION THAT INCLUDES METER INSPECTIONS AND CITY OF AUSTIN IN INSPECTIONS, MAKING SURE THAT THEY, UH, MEET NATIONAL ELECTRIC, UH, CODE.
UH, AND THEN ULTIMATELY WE, WE DO ENERGIZE THE, UH, THE SERVICE.
ABOUT HOW LONG DOES THIS WHOLE PROCESS TAKE? IT CAN VARY.
IT, UH, DID, IT DEPENDS ON THE, THE JOB.
AND WE HAVE SOME REQUESTS THAT IS A, A SINGLE, YOU KNOW, A SINGLE CUSTOMER NEAR AN ADJACENT, UM, LINE OR, OR, OR EVEN TRANSFORMER.
AND IT'S JUST AN OVERHEAD SERVICE DROP TO THE HOUSE.
UM, THAT COULD TAKE, UH, WITH CURRENT LEAD TIMES, THAT COULD TAKE A, UM, A, A MONTH OR TWO, UM, MUCH LARGER PROJECTS UP TO DEVELOPMENTS.
UM, AND JUST DEPENDING ON WITH LIKE SUPPLY CHAIN AND, AND SO FORTH, UM, THEY, THEY CAN TAKE, UH, NINE MONTHS TO, UH, TO A YEAR.
LET ME, LET ME ASK YOU, UH, REFERRING TO THE SLIDE, THE, UH, POLICY IS EXISTING, UH, COUNCIL RESOLUTION, THAT, THAT STEM SERVICE FROM AUSTIN ENERGY'S EXISTING INFRASTRUCTURE TO THE CUSTOMER'S POINT OF SERVICE, ALL OF WHICH IS, UH, WHEN THAT REQUIRES AN UPGRADE IN ORDER TO GET, NOT JUST FROM THE POLE, EXCUSE ME, FROM THE POLE TO THE HOUSE OR BUSINESS.
UH, IF, UH, IF AN UPGRADE IS REQUIRED, SAY IT'S A WHOLE SUBDIVISION, NOT JUST A HOUSE, WHERE DOES THAT GET FACTORED IN? SO THAT, THAT WOULD BE THE DEVELOPER.
UM, WORKING WITH THE DEVELOPER, WE GET, UM, POWER TO THE DEVELOPMENT ITSELF.
UH, AND WITH THAT, THERE IS A KAYAK COST FOR THAT.
AND THEN THEY, UH, THEY TYPICALLY ALSO PAY FOR THE INDIVIDUAL HOMES AND ROLL THAT INTO THE PRICE OF THE HOMES ITSELF.
SO YES, SIR, IT'S ANY WHATEVER IT TAKES TO BRING IT FROM THE EXISTING DISTRIBUTION INFRASTRUCTURE ALL THE WAY TO THE, THE POINT OF SERVICE OR THE PROPERTY.
SO, SO IF YOU HAVE TO PUT IN A, A, A NEW UPGRADE, PROVIDE A SUBSTANTIAL UPGRADE TO SERVICE A COMMUNITY OR A SERVER FARM THAT'S PAID FOR BY THE DEVELOPER, THE IT IS PAID FOR WHATEVER THEY NEED FOR THEIR SERVICE THAT THEY'RE ASKING FOR.
AND ACTUALLY THE NEXT, THIS IS A GREAT SEGUE INTO THE NEXT SLIDE AS WELL.
UM, I'M BIG ON, ON PICTURES, SO, UM, WITH THAT NEXT SLIDE, PLEASE, I'LL PAUSE IT.
SO WHO, WHO PAYS FOR WHAT? SO THIS IS A GREAT SEGUE INTO THAT.
SO AT A HIGH LEVEL, PAYMENTS FOR REQUESTS THAT COME IN CAN BE BROKEN INTO THREE BUCKETS.
YOU GOT ER, WHAT ERCOT CUSTOMERS ARE PAYING FOR.
WE TALKED A LITTLE BIT ABOUT THAT IN THE PRIOR PRESENTATION.
YOU HAVE EXISTING AUSTIN ENERGY CUSTOMERS AND YOU HAVE NEW SERVICE REQUESTS.
SO LEMME START WITH THE FIRST, UH, BUCKET.
UM, AND ACTUALLY BEFORE I DO, LET ME JUST, UH, UH, MAKE A NOTE ABOUT THE DEPICT OR THE DIAGRAM AT THE BOTTOM.
YOU'LL NOTICE THAT THE LINES THAT ARE KIND OF SPLITTING, SO IT'S GONNA BE THE FIRST BUCKET THAT WE TALK ABOUT, THE ERCOT CUSTOMERS AND THE EXISTING CUSTOMERS AND THE NEW SERVICE REQUESTS.
AND THAT'S GONNA BE REALLY IMPORTANT AS I'M, I'M GOING THROUGH AND I'LL EXPLAIN WHY.
SO THE, SO THE FIRST BUCKET IS ERCOT CUSTOMERS, THE PUBLIC UTILITY OF, UH, COMMISSION OF TEXAS P C CHAPTER 25 PERMITS TRANSMISSION SERVICE PROVIDERS, TSPS LIKE AUSTIN ENERGY TO BE REIMBURSED FOR APPROVED TRANSMISSION, COST OF SERVICE, TCO EXPENSES, PLUS A COMMISSION ALLOWED RATE OF RETURN.
TCOS FACILITIES INCLUDE TRANSMISSION LINES, SUBSTATIONS, AUTO TRANSFORMERS, REACTIVE DEVICES THAT ARE OPERATED AT 60,000 VOLTS AND ABOVE.
NOW WITH THAT IS THE ENTIRE ASSET HAS TO BE OPERATED AT 60,000 VOLTS AND ABOVE.
THAT INCLUDES THE LAND UNDER THAT.
IT INCLUDES, YOU KNOW, ANY TYPE OF CONTROL SYSTEMS TO PROTECT IT, BUT IT HA THE ENTIRE ASSET HAS TO BE OPERATED AT 60,000 VOLTS OR ABOVE.
AND SO WITH THAT IS THE LINE, YOU'LL NOTICE THAT IT'S RIGHT IN THE MIDDLE OF SUBSTATION.
IF WE HAVE A TRANSMISSION SUBSTATION WHERE WE'RE NOT STEPPING DOWN TO, UM, LESS THAN, UH, 60,000 VOLTS.
OUR LOWEST TRANSMISSION VOLTS IS 69 KV.
THEN THAT IS, IS ALL A, A TCOS ASSET IN A DISTRIBUTION
[01:10:01]
SUBSTATION WHERE WE'RE STEPPING DOWN TO SOMETHING LOWER, UM, SAY 12 FIVE OR 30, 35 KV, UH, 35,000 VOLTS.UM, UH, ONLY A PORTION OF THE SUBSTATION WOULD FALL INTO TCOS, WHICH IS THE TRANSMISSION INFRASTRUCTURE, JUST, UM, RIGHT UP TO THE POINT WHERE THE, THE TRANSFORMER ACTUALLY STEPS IT DOWN.
THAT ASSET DOES NOT OPERATE AS THE FULL 60,000 VOLTS, THEREFORE, IT DOES NOT, UH, FALL INTO THIS, THIS BUCKET.
THE NEXT BUCKET IS EXISTING AUSTIN ENERGY CUSTOMERS.
THE, THE ITEMS THAT THEY'RE PAID FOR IS CAPITAL IMPROVEMENTS TO SUPPORT SYSTEM GROWTH AND RELIABILITY, SYSTEM MAINTENANCE, INCLUDING STORM RESPONSE, POWER TRANSFORMERS, AND SWITCH GEAR THAT WE JUST SPOKE ABOUT THAT ARE OPERATED BELOW 60,000 VOLTS AND QUALIFIED AFFORDABLE HOUSING.
AND THEN FINALLY THE LAST BUCKET IS NEW SERVICE REQUESTS.
SO WE, WE SPOKE ABOUT EARLIER THAT THEY, UH, UH, INSTALLED THE CIVIL INFRASTRUCTURE, UH, INFRASTRUCTURE TO SUPPORT THEIR, THEIR REQUEST.
ADDITIONALLY, IT'S ANY OF THE DISTRIBUTION IN INFRASTRUCTURE REQUIRED EXTEND SERVICE FROM AUSTIN ENERGY'S EXISTING INFRASTRUCTURE TO THE CUSTOMER'S POINT OF SERVICE, WHICH ALSO INCLUDES EXCESS FACILITIES SUCH AS DUAL FEEDS, RESERVE CAPACITY, AND DISTRIBUTED GENERATION, ET CETERA.
IF IT'S A SPECIALTY REQUEST, ALL OF THAT FALLS UNDER KAYAK, WHETHER THEY'RE PAYING FOR IT AND INSTALLING IT, OR THEY'RE, UH, WRITING A CHECK TO AUSTIN ENERGY TO COVER THEIR, THEIR COSTS FOR THEIR REQUEST.
YOU HAVE A QUESTION? UH, YEAH, UH, ACTUALLY MINE DEALS WITH THE NEXT SLIDE.
I, OH, YOU HAVE A QUESTION? I HAVE ONE.
SO ON THE EXISTING AE CUSTOMERS SAY YOU'VE GOT, YOU WANNA TURN YOURSELF.
UM, SO SAY YOU HAVE A TRANSFORMER THAT BLOWS UP, IT'S NOT INCREASING THE SYSTEM LOAD OR WHATEVER.
WHO PAYS FOR THAT? HOW IS IT RECOVERED? IS IT JUST IN THE BASE RATES AND THAT'S JUST PART OF WHAT YOU, YOU, UH, COLLECT FROM ALL THE CUSTOMERS AND THEN, UH, PUT IT ACROSS ALL THE CUSTOMERS AND DO THAT? OR DOES SOMEHOW, IF A TRANSFORMER BLOWS UP FOR A CNI CUSTOMER, UH, FROM GETTING HIT BY LIGHTNING, THEY HAVE TO PAY FOR IT.
SO ONCE, SO THE MIDDLE BUCKET WOULD BE ANY EXISTING INFRASTRUCTURE THAT'S ALREADY IN PLACE, ALREADY PAID FOR AS PART OF THE LINE EXTENSION, UH, UH, POLICY OR THE KAYAK.
AND IT WOULD BE ANY, ANY MAINTENANCE THEREOF, UM, WOULD FALL IN THE, IN THE, THE CENTER BUCKET.
SO HOW DOES THAT GET PAID? SO DOES A CNI CUSTOMER HAVE TO PAY MONEY JUST TO GET IT REPLACED? IF IT GOT HIT BY LIGHTNING, THIS MAY BE A GOOD OPPORTUNITY.
SO ONCE IT BECOMES EXISTING STRUCTURE IN THAT MIDDLE BUCKET, IF IT BLOWS UP, UH, PROVIDED THAT IT'S NOT A PRIMARY CUSTOMER, PRIMARY CUSTOMER OWNS THEIR OWN TRANS TRANSFORMER, BUT IT'S A, IF IT'S A SECONDARY CUSTOMER, UH, IF IT'S HARMED, GETS STRUCK BY LIGHTNING BASE RATES WOULD PAY TO, TO, UH, TO REPLACE IT.
ANY OTHER QUESTIONS ON THIS? YEAH, MY QUESTION, UH, I'M CURIOUS, WHAT CONSTITUTES SUPPORTING SYSTEM GROWTH AND RELIABILITY? COULD WE GET SOME EXAMPLES OF THAT? I I'M SORRY, COULD YOU REPEAT THAT? SORRY, I'M, I'M LOOKING AT THE TOP BULLET POINT IN THE MIDDLE COLUMN.
COULD, COULD WE GET SOME EXAMPLES OF WHAT THAT I'LL GIVE, I'LL GIVE YOU ONE HERE IN, IN JUST, JUST A MINUTE IF, AND, AND I'LL CIRCLE BACK TO THAT IF I DON'T FULLY ANSWER YOUR QUESTION.
WELL, I GUESS I KIND OF HAD A COMMENT.
ON THAT, LIKE, I, NOT KNOWING EXACTLY WHAT THAT MEANS, IT SEEMS LIKE, YOU KNOW, I DON'T KNOW, I THINK LIKE SOME OF THE DISTRIBUTED GENERATION CAN CONTRIBUTE TO INCREASED RELIABILITY, UM, AND CAN, COULD MAYBE ALSO BE SUPPORTING SYSTEM GROWTH DEPENDING ON WHAT THAT MEANS.
SO YEAH, JUST, I DON'T KNOW, COMMENT THERE THAT IT SEEMS LIKE MAYBE THAT IT'S IN THE WRONG PLACE.
ANYTHING ELSE? THANK YOU, DAVID.
SO THE SLIDE, WE JUST, RUSTY MANIAS, VICE PRESIDENT OF FINANCE.
UM, THE SLIDE WE JUST LEFT, KIND OF LAID OUT HOW AUSTIN ENERGY PAYS FOR ITS CAPITAL ASSETS, RIGHT? SO, UH, INCLUDING THAT, THAT LAST BIT OF LINE COVERED BY LINE EXTENSIONS AND THE RESULTING CONTRIBUTIONS AND AID TO CONSTRUCTION.
BUT I WANTED TO REALLY POINT OUT THAT, UM, UH, LINE EXTENSIONS ARE NOT THE EQUIVALENT OF AN IMPACT FEE.
AND I'LL GIVE YOU AN EXAMPLE OF THAT HERE IN JUST A, IN JUST A MINUTE.
IN FACT, MUNICIPAL ELECTRIC UTILITIES, UM, ARE PROHIBITED FROM IMPOSING THOSE FEES AS OPPOSED TO, FOR EXAMPLE, HERE, WATER, WATER, AUSTIN WATER, IF, FOR EXAMPLE, UH,
[01:15:01]
CAN, UH, IMPOSE IMPACT FEES.SO LET ME GIVE YOU AN EXAMPLE TO KIND OF DIFFERENTIATE HOW AUSTIN ENERGY PAYS FOR ITS, UH, ASSETS AS, AS OPPOSED TO A MUNICIPAL, UH, ENTITY THAT CAN, UH, ASSESS AN IMPACT FEE.
SAY A DEVELOPER COMES IN, DEVELOPS A PIECE OF PROPERTY, IT'S MULTI, MULTI-USE, OKAY, SOME SINGLE FAMILY RESIDENTS, SOME MULTI-FAMILY RESIDENTS, SOME COMMERCIAL.
DOES THAT LOAD COMES IN AND AS A RESULT OF DEVELOPING THAT, WE KNOW THAT THE EXISTING SYSTEM WILL NEED TO BE EXPANDED TO PROVIDE CAPACITY FOR THAT.
SAY THAT'S 30 MILLION IN THIS EXAMPLE.
THE WAY AUSTIN ENERGY WOULD RECOVER THAT IS, UH, THAT, THAT PIECE OF LINE THAT GOES FROM THE EXISTING SYSTEM TO, UH, TO THE NEW INFRASTRUCTURE WOULD CERTAINLY BE RECOVERED THROUGH THE LINE EXTENSION POLICIES.
DAVID SAID, UH, AND PAID FOR THROUGH CONTRIBUTIONS IN AT AND CONSTRUCTION.
THE OTHER PIECE, THE SYSTEM EXPANSION WOULD BE PAID BY BASE RATES, WHICH MEANS THAT IT WOULD HAVE TO BE BUILT, IT WOULD HAVE TO BE USED AND USEFUL, AND THEN A, A RATE CASE TO GET IT INTO THE RATES.
NOW, CONTRAST THAT TO AN IMPACT FEE.
SAY, UH, SAME DEVELOPER, UH, AND AUSTIN WATER IS INVOLVED AND THEY LOOK AT IT AND THEY SAY, OH, THAT'S GONNA PUT 30 MIL, WHO'S GONNA REQUIRE ME TO MAKE A 30 MILLION INVESTMENT? WHAT THEY WOULD DO IS THEY WOULD ASSESS THAT 30 MILLION TO THAT DEVELOPER TODAY AND THEY WOULD GET PAID FOR IT TODAY.
SO, UM, UH, THE IMPACT FEES PROVIDE IMMEDIATE CASH UP FRONT, WHEREAS AUSTIN ENERGY, BECAUSE WE CANNOT ASSESS IMPACT FEES, UH, FINANCE IT, UH, IN THE FORM I JUST SAID, EITHER THROUGH BASE RATES OR LINE EXTENSIONS.
SO ALL OF WHICH IS WE ARE SPENDING MILLIONS NOW TO, UH, PUT IN NEW FEEDER AT RAINY STREET TO SERVE PLAN DEVELOPMENT, CURRENT PLAN, CURRENT AND PLAN DEVELOPMENT IN THAT AREA.
AND MY UNDERSTANDING WAS THAT THAT WILL BE REFLECTED IN FUTURE RATES.
ARE YOU SAYING THE DEVELOPERS WHO ARE PUTTING IN ALL THE NEW, NEW STRUCTURES IN THAT AREA, ONLY THE PAY FOR THAT SUBSTATION AND O ONLY THE PIECE, RIGHT? THAT, THAT, THAT, UM, UH, MOVES FROM OUR EXISTING SYSTEM TO CONNECT IT TO THE NEW LOAD, RIGHT? THAT PIECE WOULD BE COVERED THROUGH CONTRIBUTION AID CONSTRUCTION.
BUT IF, FOR EXAMPLE, WE HAD TO EX ADD ANOTHER TRANSFORMER TO A SUBSTATION OR BUILD ANOTHER SUBSTATION, THAT'S ALL BASE RATES FOR A DIS ON THE DISTRIBUTION SIDE.
KATIE, DO YOU HAVE A QUESTION? I DO.
UM, SO MY UNDERSTANDING, UM, IS THAT WHEN YOU DO A CAPITAL IMPROVEMENT, YOU, AS YOU SAID, YOU WAIT UNTIL YOU HAVE ANOTHER, UH, BASE RATE CASE, UM, TO PUT IT INTO YOUR, UH, RATE BASE, RIGHT? AND THEN YOU RE YOU DON'T RECOVER THE, YOU DON'T RECOVER THE FULL COST.
SAY IT'S $30 MILLION, THAT DOESN'T, YOUR, YOUR COST OF SERVICE DOESN'T GO UP, 30 MILLION GOES INTO YOUR BASE RATE AND YOU EARN A RETURN OF SOME SORT ON THAT, ISN'T THAT RIGHT? YES, MA'AM.
TYPICALLY THE REVENUE REQUIREMENT WOULD INCLUDES THEORETICALLY YOUR O AND M COSTS, DEPRECIATION EXPENSE, A RETURN FUNCTION, AND THEN PLUS OR MINUS OTHER REVENUE OR COSTS.
AND SO WHERE THAT INVESTMENT WOULD BE REFLECTED WOULD BE REFLECTED IN YOUR DEPRECIATION RATES, ANY TYPE OF O AND M THAT MIGHT BE ASSOCIATED THAT OCCURRED DURING THE TEST YEAR.
AND FINALLY SOME COMPONENT WITHIN THE RETURN FUNCTION, EITHER A, A RETURN ON RATE BASE OR IN OUR CASE WE DO A CASH FLOW, UH, RETURN CALCULATION.
SO IT WOULD BE INCLUDED MAYBE PERHAPS IN THE DEBT SERVICE THAT'S ASSOCIATED WITH IT.
THAT'S FOR THAT CLARIFICATION.
SO, SO CAN YOU EXPAND ON THAT 30 MILLION EXAMPLE? WAS THAT 30 MILLION THE SYSTEM UPGRADE OR THE TOTAL LINE EXTENSION PLUS SYSTEM UPGRADE? IN, IN THAT EXAMPLE, IN, IN THAT EXAMPLE, IT WAS, IT WAS A TOTAL COST A PIECE, SOMETHING LESS THAN 30 MILLION WOULD BE RECOVERED FROM THE LINE EXTENSION GOING FROM EXISTING PLANT TO THE, TO THE, TO THE NEW DEVELOPMENT.
SO LET'S JUST PULL THIS THREADS MORE.
SO SAY 20 MILLION WAS FROM YOUR EXISTING SUBSTATION TO THE NEW LOAD THAT WOULD BE COVERED BY THE DEVELOPER, RIGHT.
AND COVERED THROUGH, YOU UPGRADE THE CONSTRUCTION, THE SUBSTATION FOR 10, AND THAT'S WHAT YOU WOULD PUT IN THE BASE RATES EVENTUALLY, OR COVERED THROUGH BASE RATES? YES.
EVENTUALLY AS, AS UPON, YOU KNOW, A NEW COST ONCE IT BECOMES USED AND USEFUL.
[01:20:01]
A NEW COST OF SERVICE.ANY QUESTIONS? I HAVE ANOTHER QUESTION,
UM, SO YOUR C I A C, IT, UM, THOSE YOU DON'T EARN, YOU DON'T, YOU OWN, YOU OWN THE, UM, ASSET THAT IS PAID FOR BY THE CUSTOMER, THE NEW SERVICE REQUEST CUSTOMER, RIGHT? YES MA'AM.
AND YOU DON'T EARN, YOU DON'T, WE'LL, I DON'T KNOW.
DO YOU DEPRECIATE IT? YES, MA'AM.
BUT, BUT IT'S OFFSET BY THE AMORTIZATION OF THE CONTRIBUTION NATURE TO CONSTRUCTION.
THAT'S WHAT I WAS LOOKING FOR.
ANYTHING ELSE? I DON'T KNOW IF IT'S JUST CUZ I'M SLEEP DEPRIVED, BUT I'M NOT UNDERSTANDING.
SO YOU'RE SAYING THE LINE EXTENSION, THE PART THAT THE CUSTOMER IS RESPONSIBLE FOR, THEY DO NOT PAY UP FRONT.
THE, THAT PIECE OF, OF PLANT THAT WE HAVE TO CONSTRUCT TO BILL FROM OUR EXISTING FACILITIES TO THE NEW THAT'S, THAT IS PAID FOR BY CONTRIBUTION AND AID TO CONSTRUCTION BY THE CUSTOMER.
AND SO THE ONLY DIFFERENCE HERE, THE DIFFERENCE HERE IS WHETHER OR NOT IT'S JUST FROM THE EXISTING INFRASTRUCTURE TO THE NEW DEVELOPMENT VERSUS THE IMPACT FEE WOULD COVER ANY OF THOSE UPGRADES AS WELL? IT IT, YEAH.
IT, IT, IT, IT'S NOT ONLY WHAT'S PAID FOR, IT'S THE TIMING OF THE PAYMENT AND, AND HOW FAST IT'S COLLECTED.
ONCE AGAIN, IF WE DO THE 30 MILLION DEAL, RIGHT? WE GET IN, IN YOUR CASE, 20 MILLION OF CONTRIBUTION AGE CONSTRUCTION RIGHT UP FRONT.
DAVID JUST WALKED YOU THROUGH THE PROCESS.
HERE'S A BID COST 20 MILLION, THEY PAY US, WE HOOK IT UP TO THE SYSTEM, THEN THE OTHER 10 MILLION THAT WE HAVE TO, WHEN, WHEN THE LOAD COMES ONLINE AND WE MAKE THAT INVESTMENT THAT SITS AND WAITS UNTIL THAT A BECOMES USED AND USEFUL.
AND THEN THERE'S A COST OF SERVICE TO BRING IT INTO THE RATE BASE.
AN IMPACT FEE IS THE DEVELOPER SAYS, I'M GONNA BUILD THIS.
AND IN THIS OUR EXAMPLE, AUSTIN WATER SAYS, I'M GONNA NEED, NEED TO MAKE A 30 MILLION INVESTMENT.
THE THE DEVELOPER WRITES THEM A CHECK FOR THE FULL AMOUNT TODAY, BASICALLY.
SO THEY GET ALL OF IT AND THEY GET IT NOW AS OPPOSED TO AUSTIN ENERGY WHERE THEY GET SOME OF IT AND THE REST COMES LATER.
WELL THEN I GUESS GOING BACK TO MY QUESTION OR COMMENT ABOUT THE DISTRIBUTED GENERATION, I'M NOT UNDERSTANDING, GIVEN THAT EXPLANATION AND THIS EXAMPLE OF THE TRANSFORMER THAT THAT WOULD NEED UPGRADING FOR A NEW BUILDING OR DEVELOPMENT.
IT SOUNDS LIKE THE DEVELOPER DOES NOT PAY THAT.
IF, IF A CUSTOMER WANTS TO INSTALL SOLAR AND THAT REQUIRES AN UPGRADING OF THE TRANSFORMER, DO THEY HAVE TO PAY FOR THAT? YES.
SO HOW DOES THAT ALIGN WITH THIS? LIKE IT'S NOT NEW, THE LINE IS ALREADY THERE, THE TRANSFORMER'S ALREADY THERE, IT SEEMS LIKE I'LL THAT'S, LET ME TURN IT BACK OVER TO DAVID EQUIVALENT OR IT IS EQUIVALENT, BUT IT'S NOT CHARGED EQUIVALENT.
UM, I THINK, I THINK PART OF IT IS WE'RE USING THE TERM NEW SERVICE.
IT'S A NEW OR CHANGED TO YOUR EXISTING SERVICE.
THOSE ARE ALL SUBJECT TO THE CONTRIBUTION NATIVE CONSTRUCTION.
BUT ISN'T REDEVELOPING A PROPERTY THAT LIKE USED TO BE A SINGLE FAMILY HOME INTO A HIGH RISE, LIKE A CHANGE IN SERVICE AND THEY PAY FOR THAT EVERY BIT OF IT, BUT THEY DON'T PAY FOR THE TRANSFORMER THAT NEEDS UPGRADING, RIGHT? THAT WAS NO.
SO, SO IF A TRANSFORMER NEEDS TO BE UPGRADED IN ORDER TO SERVE THE SERVICE, THEY PAY FOR THAT.
SO THAT'S A CHANGE IN SERVICE.
AND MAYBE APOLOGIES IF, IF THE NEW TERM WAS, WAS CONFUSING A NEW OR CHANGE IN SERVICE IF THE TRANSFORM INDEPENDENT OF A REQUEST FAILS IN THE MIDDLE OF THE NIGHT, WHICH IS WHAT I UNDERSTAND.
YEAH, I'M NOT TALKING ABOUT THAT.
SO IS THAT THE SUBSTATION THEY DON'T HAVE TO PAY FOR THAT IS, THAT IS CORRECT.
THE SUBSTATION TRANSFORM AND IT, IT, IT MAY BE HELPFUL.
CAN WE GO BACK ONE SLIDE PLEASE? STILL SEEMS A LITTLE UNFAIR.
SO LOOKING AT THE SPLITS AGAIN, IS IF WE BUILD A NEW SUBSTATION OR WE ADD ANY INFRASTRUCTURE IN A SUBSTATION, IF IT'S 60,000 VOLTS AND ABOVE IT, IT WILL GO, UH, VIA OR BASICALLY WITHIN THE FIRST BUCKET T COST.
IF IT'S, LET'S JUMP TO THE, TO THE LAST ONE, WHICH IS BASICALLY THE EXTENSION OR THE CHANGE OF SERVICE REQUIRED FROM THE, THE DISTRIBUTION ORDER TO SERVE THAT CUSTOMER THAT IS PAID, UH, UH, VIA THE CONTRIBUTION AID OF CONSTRUCTION.
WHAT'S IN THE MIDDLE IS, IS AUSTIN ENERGY, UH, EXISTING AUSTIN ENERGY CUSTOMERS.
[01:25:01]
AND SO THAT'S JUST REGARDLESS OF THE CAUSE THIS MAY BE YEAH, I MEAN, YES.I JUST WONDER IF THIS IS PART OF THE STANDARD OFFER DISCUSSION THAT WE MIGHT GET MORE EDUCATION ON AND, AND OTHER MEETINGS THAT MIGHT BE MORE TECHNICAL IN SOME WAY.
THESE ARE THE LINE EXTENSION GUYS, SO I WAS ASKING THEM, BUT I THINK I GOT MY ANSWER.
WELL, I THOUGHT THAT IN SOME WAYS IT ALL MAKES SENSE, BUT THE FIRST CUSTOMER WHO HAS TO PAY FOR THE UPGRADE, THEY GET THE HIT AND THERE COULD BE SUBSEQUENT CUSTOMERS THAT GET THE BENEFIT THAT HAVE JUST SLID UNDERNEATH THAT.
AND I THINK THAT'S RELATED TO WHAT YOU'RE TALKING ABOUT.
YEAH, AND I, AND I GET THAT MAYBE IT'S NOT THE SAME EQUIPMENT, BUT IT SEEMS LIKE, YOU KNOW, IF WE'RE PAYING COLLECTIVELY FOR SOMETHING AS BIG AS A SUBSTATION UPGRADE OR IMPROVEMENT, BUT WE CAN'T SOCIALIZE THE COST FOR TRANSFORMER UPGRADE.
I DON'T KNOW, IT JUST DOESN'T QUITE MAKE SENSE.
I THINK ONE OF THOSE COST A LOT MORE THAN THE OTHER.
WHY DON'T WE TABLE THIS BECAUSE I THINK IT'S GONNA BE PART OF THE STANDARD OFFER DISCUSSION.
ANY OTHER QUESTIONS? ANY QUESTIONS ONLINE? OKAY, LET'S GO TO THE NEXT SLIDE PLEASE.
AND SO THIS GIVES YOU JUST, I THINK IT'S A NINE YEAR LOOK AT, AT WHAT WE'VE COLLECTED, UH, BY YEAR.
YOU CAN SEE THAT, UM, SINCE ABOUT NINE, UH, 2019, IT'S ALWAYS BEEN ABOUT $40 MILLION, MAYBE A LITTLE MORE.
UH, THAT I HAVE QUESTIONS ON THAT PLEASE.
UH, ALL OF WHICH IS, UH, YOU, Y'ALL HAVE A MAN, UH, IN ESSENCE A A PRICE MANUAL, UH, THAT FOR LINE EXTENSIONS, DAVID AND ALL OF WHICH IS WE, WE WE'RE SEEING TO THE COST OF NEW METERS MM-HMM.
WE'VE SEEN SALARIES, UH, WERE GO UP SALARIES AND BENEFITS HERE.
UH, CERTAINLY ENGINEERING COSTS THAT ARE CONTRACTED.
AND YET, UH, IN THE LAST FIVE YEARS, IT APPEARS DURING TIMES OF RECORD GROWTH WHERE THERE WAS NEW, NEW DEVELOPMENT, IT APPEARS KIND OF FLAT SINCE 2017, UH, THE REVENUES RECEIVED.
UH, WHEN WAS THE W IN ESSENCE PRICING MANUAL PAID FOR BY, PRESUMABLY BY THE DEVELOPERS THAT PAY THE C I A C? HAS THAT BEEN UPGRADED ANNUALLY? OR, OR WHY ARE WE NOT SEEING A SIGNIFICANT GROWTH THERE? I I CAN'T SPEAK TO THE DIFFERENCE FROM ONE YEAR TO THE THE OTHER, BUT I CAN SPEAK TO THAT.
UH, EVERY YEAR THERE ARE SOME STANDARD CHARGES, UM, THAT ARE, UM, APPROVED, UH, FEES THAT ARE APPROVED BY COUNCIL, AND THOSE ARE OF COURSE, UPDATED AS NEEDED.
THE OTHER THING IS, EVERY SINGLE DESIGN THAT WE DO, WHEN WE DO IT, WE GENERATE A COST QUOTE RIGHT THEN AND THERE AND PROVIDE IT TO THE CUSTOMER.
THOSE COSTS, QUOTE ARE BASED ON OUR, UH, YOU KNOW, UH, OUR LABOR COST INTERNALLY AS WELL AS, UM, MY UNDERSTANDING AND RUSTY AND CORRECT ME IS AS WE'RE, UM, BUYING NEW INVENTORY AND THE PRICES ARE GOING UP, THEY'RE AVERAGED OUT AND OVER TIME, THAT'S A, YOU KNOW, AVERAGED OUT BEING THAT WE DON'T KNOW EXACTLY WHICH TRANSFORMER IS GONNA GO TO WHICH CUSTOMER BECAUSE THEY STILL HAVE TO BUILD THEIR DEVELOPMENT AND MAYBE THEY'RE, THEY'RE FURTHER BEHIND, BUT THOSE ARE REFLECTED IN THOSE ESTIMATES AS ARE, UH, COSTS ARE GOING UP, ARE BEING PASSED ON THROUGH THE, THE CONTRIBUTION OF DATA CONSTRUCTION.
WELL, I, ALL OF WHICH IS IT JUST SEEMS TO ME WITH SUBSTANTIAL GROWTH, I, I MEAN, I, IF, IF Y'ALL COULD FOLLOW UP AND, AND LET, LET US KNOW, UH, WHY THOSE WE'RE NOT SEEING IN RECENT YEARS A SUBSTANTIAL INCREASE IN, IN REVENUES, UH, IN THIS AREA.
UH, ALL I CAN TELL YOU IS IT, IT DEPENDS ON THE JOBS AND, AND THE MAGNITUDE OF THE COSTS.
SO I MEAN, THAT, THAT'S, IT'S JUST A FUNCTION OF THAT.
SO I, DAVID DAVID'S TALKED TO, YOU KNOW, ABOUT HAVING CURRENT QUOTES AND THERE'S, UH, TO MY KNOWLEDGE, UH, UNLESS IT'S HAS SOMETHING TO DO WITH, UH, AFFORDABILITY, THAT IT'S JUST A FUNCTION OF, OF WHAT WE BUILT, RIGHT? UH, AND IT'S WHAT YOU BILL ALL OF WHICH IS YOUR LABOR COSTS ARE GOING UP, YOUR PRI THE COST OF METERS, THE COST OF WIRES, EVERYTHING'S GOING UP.
AND YET THIS IN RECENT YEARS IS FLAT.
[01:30:01]
I I I I, I'M NOT SAYING WHAT WHATEVER YOU BILL, SEND A INVOICE TO THE DEVELOPER.I'M NOT SAYING THERE'S ANYTHING WRONG WITH THAT.
I'M JUST SAYING, YOU KNOW, OR THAT YOU'RE NOT BILLING PEOPLE.
I'M JUST ASKING BECAUSE THE, THE COUNCIL RESOLUTION IN 2014 REQUIRES FULL RECOVERY AND YOU THINK IT WOULD BE GOING UP AND IT'S NOT.
COULD YOU, COULD YOU, UH, FOLLOW UP WITH US? YEAH, I, I'LL SEE WHAT I CAN FIND.
RIGHT? UH, I DON'T, I MAY NOT TELL YOU, BE ABLE TO TELL YOU THE RHYME OR THE REASON WHY THEY'RE NOT GOING UP.
I MEAN, WE CAN LOOK AT THE NUMBER OF CONNECTIONS.
MAYBE THEY HAVEN'T BEEN AS EXTENSIVE.
MAYBE THEY'VE BEEN BUILT CLOSE TO THE SYSTEM, I DON'T KNOW.
BUT WE'LL LOOK INTO IT, THANK YOU.
AND GET WHAT FACTS WE CAN FIND FOR YOU, RIGHT? SO YEAH, SO WHAT IT COULD BE IS FEWER NUMBER OF PROJECTS OR NEW CONNECTIONS AT A HIGHER COST TO EACH OR SOMETHING LIKE THAT.
IT WOULD JUST BE INTERESTING TO SEE THAT.
AND SO HERE'S JUST A QUICK ACCOUNTING AND THIS EXAMPLE, IT'S A A $60,000, UH, CAPITAL COST FOR A LINE EXTENSION, UH, RESULTS IN A $60,000 CONTRIBUTION AID TO CONSTRUCTION.
THE MONEY COMES IN, WE BUILD A ASSET AS REFLECTED THE NET CAPITAL ASSET.
WE BOOK THE CONTRIBUTION AID TO CONSTRUCTION AS A DEFERRED INFLOW.
SO YOU CAN SEE THAT THEY MATCH THERE.
AND THAT THE DEPRECIATION THAT ON THE INCOME STATEMENT, WE AMORTIZE, UH, THE DEFERRED INFLOW AT THE SAME RATE AS THE ASSET IS DEPRECIATED.
SO THE NET EFFECT ON THE INCOME STATEMENT IS ZERO.
AND SO, HOW DOES CONTRIBUTION AGE CONSTRUCTION HELP IN SETTING RATES? HERE'S THE SCHEDULE RIGHT OFF OF OUR LAST RATE CASE SCHEDULE, C3, THIS IS THE RETURN FUNCTION.
WHERE'S THE CALCULATED? AND YOU CAN SEE WHERE THE GREEN LINE IS DRAWN, UH, IN THAT RATE CASE.
UH, THE CUSTOMERS BENEFITED BY ROUGHLY 44 MILLION.
AND THAT'S ALL I HAVE FOR YOU, AND I'D BE HAPPY TO ANSWER ANY OTHER QUESTIONS YOU MIGHT HAVE.
[13. Update from Budget & Audit Working Group]
NOW WE'RE ON 13, WHICH IS AN UPDATE FROM BUDGET AND AUDIT, AUDIT WORKING GROUP.ANYTHING HERE? UH, THE WORK GROUP, UH, MET RIGHT BEFORE THE MEETING, UH, TALKED ABOUT OUR SCHEDULE, UH, FOR THE NEXT, AND, UH, AND IT IS, UH, ALL OF WHICH IS, UH, WE WILL BE MEETING SEVERAL DAYS IN ADVANCE OF, UH, FUTURE EUC MEETINGS.
UH, AND OF COURSE, ALL COMMISSIONERS, UH, OUR ARE WELCOME TO PARTICIPATE AS LONG AS WE DON'T HAVE A QUORUM.
AND SO BY MEETING AHEAD OF TIME, THEN WE CAN, IF THERE'S ANY RESOLUTION, EXCUSE ME.
WE WILL BE, UH, SENDING, IF THERE ARE ANY RESOLUTIONS, UH, UH, THEY WILL BE, UH, SUBMITTED, UH, UH, TIMELY TO FOR, SO THAT WAY WE CAN HAVE NOTICE AND IT CAN BE POSTED.
WE'LL GET IT, WE'LL GET IT TO YOU AND ROB, ROBIN, UH, TIMELY.
[14. Consider recommendation of a waiver of the term limit to allow Kaiba White to serve as the Electric Utility Commission representative to the Joint Sustainability Committee. (Sponsors: White, Chapman, Tuttle)]
CONSIDER RECOMMENDATION OF A WAIVER TO ALLOW CAVA WHITE TO SERVE.SO WE HAVE THAT POSTED, RIGHT? THAT RECOMMENDATION.
SO WE JUST NEED A MOTION, A SECOND AND A VOTE, RIGHT? OKAY.
SO I MAKE A MOTION AND HE SECOND TO THIS WAIVER, APPROVE RANDY SECONDS.
SO CAN WE HAVE A VOTE ON THIS? ANY DISCUSSION ON IT? ANYBODY WANNA UNDERSTAND WHAT WE'RE TALKING ABOUT ON THAT? ESPECIALLY WITH NEW PEOPLE? I FEEL LIKE I SHOULD EXPLAIN.
I FIRST OF ALL DID NOT KNOW THAT I WAS CONSIDERED, UM, AT THE TERM LIMIT, UH, WHEN I VOLUNTEERED TO TAKE ON THE ROLE, UH, BECAUSE THE COMMISSION HAS NOT ACTUALLY MET FOR EIGHT YEARS, BUT THAT'S NOT HOW IT'S ACCOUNTED.
IT'S ACCOUNTED BY THE APPOINTMENT AND THEN THEY ROUND UP BY THE YEAR.
SO, UM, HENCE I AM CONSIDERED PAST MY TERM LIMIT.
AND MY APPOINTING COUNCIL MEMBER, UH, DID REACH OUT TO THE CLERK'S OFFICE ABOUT A WAIVER, AND THE CLERK'S OFFICE ASKED THAT THE UC FIRST REQUEST THE WAIVER.
THAT'S HOPEFULLY THE EXPLANATION.
UH, THANK YOU FOR VOLUNTEERING TO SERVE.
[01:35:03]
ANY OTHER QUESTIONS ON THIS BEFORE WE VOTE? OKAY, SO WE HAVE A MOTION, WE HAVE A SECOND.[15. Discussion and possible action of a Resolution on Hiring Austin Energy General Manager. (Sponsors: White, Tuttle)]
UH, THE RESOLUTION FOR HIRING AUSTIN ENERGY'S GENERAL MANAGER.WE JUST NEED A MOTION SECOND TO VOTE ON THAT.
I THINK THAT'S BEEN POSTED, SO ANY DISCUSSION ON THIS? SO MOVED.
YEAH, I MEAN, I DON'T KNOW IF, IF EVERYBODY HAD A CHANCE TO LOOK AT IT THEN THAT'S, THAT, THAT'S GREAT.
I'M, I'M HAPPY TO MOVE FORWARD WITH THAT WAY.
JUST, UM, YOU KNOW, THOUGHT THAT THIS WAS SOMETHING THAT WE SHOULD WEIGH IN ON, KIND OF IN LIGHT OF RECENT EVENTS AND COMMUNICATION AND ENGAGEMENT WITH THE PUBLIC BEING IMPORTANT AND THAT THERE HAVE BEEN SOME ATTEMPTS AT KIND OF PUBLIC INVOLVEMENT, UH, IN PAST, UH, GENERAL MANAGER HIRING, BUT IT WAS STILL GENERALLY A, A SELECT KIND OF LIKE HAND SELECTED GROUP BEHIND CLOSED DOORS AND THAT IT MIGHT BE HEALTHY TO OPEN IT UP A BIT, BUT THERE IS AN UNDERSTANDING THAT THE CITY MANAGER IS THE ONE WHO REALLY HIRES AND DROPS THIS, RIGHT.
AND IT'S UP TO HIM TO STOP THE PROCESS.
HAS THERE, HAS THERE BEEN, UH, UH, AUSTIN ENERGY? HAS THERE BEEN, UH, COUNCIL, CITY MANAGER MAKE ANY STATEMENTS AND SAY THANK YOU? YEAH, I JUST WANT TO, UH, SAY I LIKE THE RESOLUTION THANKS TO THE SPONSORS FOR PUTTING IT TOGETHER AGAIN.
SO WE HAVE A MOTION, WE HAVE A SECOND.
I THINK WE HAVE SIX VOTES FOR THAT.
[16. Discussion of report regarding City Council action on items previously reviewed by the EUC.]
I THINK THIS WAS AN FI AYE IT'S IN THE MATERIALS IF WE WANNA LOOK AT IT.[FUTURE AGENDA ITEMS]
AGENDA ITEMS. UM, THE D E R VEHICLE TO H THAT'S GONNA BE AT THE UTILITY OVERSIGHT, WE'RE GONNA SEE NEXT TIME.DO YOU WANNA GO OVER THE THINGS THAT ARE IN THE QUEUE FOR THE NEXT MEETING? UH, WE, WELL WE WILL HAVE THE DISTRIBUTED ENERGY RESOURCE, UM, BRIEFING AT THE JUNE MEETING.
AND I'M WAITING FOR CONFIRMATION ON THE STORAGE RFP.
UM, THAT MIGHT NOT BE QUITE READY FOR JUNE.
UM, BUT I'LL, I'LL BE TOUCHING BASE WITH YOU OR ACTUALLY ERICA'S GONNA BE CON UH, GIVING YOU A CALL ABOUT THAT.
OH, COULD I ASK A QUESTION? JUST WONDERING, WHEN YOU SAID THE DISTRIBUTED ENERGY RESOURCE, WHICH, WHAT BUCKET HAVE WORKED, WHAT ALL IS INCLUDED IN THAT? THAT'S THE, THE V TWO H.
UM, UM, WE WILL BE DOING THAT BRIEFING TO COUNSEL AT THE A E U O C AUSTIN ENERGY UTILITY OVERSIGHT COMMITTEE MEETING NEXT WEEK.
UM, AND SO WE'LL BE BRINGING THAT TO E U C NEXT MONTH AT THE REQUEST OF A CHAIR TITLE.
AND, AND IS, THAT'S ONE THAT TIM IS DOING RIGHT? COULD WE POTENTIALLY GET HIM TO ALSO GIVE US A SHORT UPDATE ON THE STATUS OF THE STANDARD OFFER, THE SO STANDARD OFFER FOR DISTRIBUTED SOLAR PROGRAM SINCE HE'LL BE HERE, I THINK THAT'S WHAT WE'RE GONNA BE TALKING WITH HIM.
WE'RE GONNA BE SETTING UP, SETTING UP A MEETING TO TALK WITH HIM.
SO I DON'T KNOW IF THAT'S GONNA BE STILL T B D I DUNNO IF I CAN COMMIT TO, TO THAT RIGHT NOW.
AND ONE OTHER THING IN THE FUTURE THAT I DON'T KNOW IF THERE'S A BETTER NAME, THE DRIPPER DRAIN PLAN, UM, CAN WE PUT THAT ON SOMETIME, IT DOESN'T HAVE TO BE NEXT MONTH, BUT SOMETIME IN THE FUTURE STEWART CAN TALK ABOUT THIS.
UM, SO, AND WHAT YOU'RE REFERRING TO IS THIS MIKE ON, UM, OKAY.
WHAT YOU'RE REFERRING TO IS SOMETHING THAT YOU BROUGHT UP WHEN WE GAVE OUR WINTER STORM MARA BRIEFING, UM, ABOUT INSTRUCTING
[01:40:01]
CUSTOMERS, UM, IN WINTER STORM EVENTS, PARTICULARLY WITH, UH, POWER OUTAGES.AND THERE MIGHT BE, YOU KNOW, COLD WEATHER ACTIVITIES THAT ARE NECESSARY.
AND THEN ESPECIALLY WHEN THERE'S POWER OUTAGES.
SO WE'RE WORKING ON A CITYWIDE COMMUNICATION HAVING TO DO WITH EMERGENCY PLANNING AND, UM, I'VE COMMUNICATED WITH MY COMMUNICATIONS TEAM TO MAKE SURE THAT AUSTIN WATER IS ENGAGED WITH THAT.
AND SO WE HAVE A HOLISTIC APPROACH, A ONE CITY APPROACH FOR THOSE, THOSE COMMUNICATIONS AS NECESSARY.
SO THAT CAN BE INCLUDED IN, IN THAT COMMUNICATION.
AND SO WE'LL, WE'LL, UM, BE SURE TO UPDATE YOU ON THAT GUIDANCE.
AND I, I UNDERSTAND AUSTIN WATER HAS SOME VIDEOS PERHAPS, UH, WITH SOME INSTRUCTIONS ON THAT, BUT I HAVE NOT SEEN THAT.
UM, BUT THAT'S SOMETHING THAT THE TEAMS ARE, ARE LOOKING AT IN TERMS OF FUTURE CITYWIDE COMMUNICATIONS AND ONE PAGERS FOR THE CITY IN TERMS OF EMERGENCY PREPAREDNESS.
CAN WE JUST PUT IT ON THE QUEUE AND, AND THEN SOMETIME WE'LL GO TO READOUT, HOPEFULLY IN THE NEXT FEW MONTHS ON THAT.
AND THEN CAN I HAVE A, YOU HAD A QUESTION ABOUT TRANSMISSION? WELL, REALLY IT WAS CYRUS, BUT I, I DO SECOND HIS REQUEST, UM, TO GET THAT PRESENTATION IN JUNE SO THAT WE'RE PREPARED FOR RESOURCE PLANNING DISCUSSION STARTING IN JULY PER COUNCIL OF THE LIGHT DIRECTION.
AND, AND FOR PURPOSES OF OUR WORK GROUP, WHEN THAT, UH, INFORMATION RELATED TO THAT, UH, IF WE COULD HAVE THE INFORMATION TIMELY FOR THE, FOR THE WORK GROUP.
SO THE TRANSMISSION STUDY, THE PLAN HAS BEEN TO UPDATE THE COMMISSION IN JULY WITH THE PRESENTATION ON THE TRANSMISSION STUDY BECAUSE WE ARE NOT, UH, EXPECTING THE FINALIZED TRANSMISSION STUDY UNTIL JUNE, SO WE WOULDN'T BE ABLE TO BRIEF THIS COMMISSION UNTIL JULY.
BUT THAT'S ON, ON THE SAME TRACK THAT WE'VE BEEN ON NOW FOR, FOR SEVERAL MONTHS.
I, I, I GUESS WHAT I'M ASKING IS IF, IF, IF OUR WORK GROUP IS MEETING A, A WEEK OR SO IN ADVANCE, INSTEAD OF WAITING UNTIL THE MATERIALS ARE SENT OUT THE THURSDAY, FRIDAY BEFORE, IF WE COULD HAVE THAT INFORMATION, UH, WHEN IT'S AVAILABLE, AS SOON AS IT'S AVAILABLE, THAT'S ALL THE, FOR THE PRESENTATION TO THE E RIGHT? RIGHT.
INSTEAD OF WAITING TO PUT IT INTO THE PACKET THAT COME THAT IS, YOU KNOW, COMES OUT THE FRIDAY BEFORE THE EUC MEETING, IF IT'S AVAILABLE BEFORE, THEN PLEASE SEND IT TO US.
YEAH, A LOT OF THE TIME WE'RE, UM, FINALIZING SOME OF THESE PRESENTATION MATERIALS KIND OF UP UNTIL THE LAST MINUTE.
UM, SO IF IT IS AVAILABLE AHEAD OF TIME THOUGH.
YEAH, I THINK JUST TO TAG ONTO THAT, WE'RE ASKING CUZ WE WANT TO ADHERE TO THE, UM, TO THE REQUIREMENT OF, OF SUBMITTING THINGS THAT WE CAN ADVANCE.
SO IF WE DON'T HAVE THE MATERIAL, THEN WE CAN'T PREP SOMETHING TO SUBMIT ON THAT TIMELINE, IF THAT MAKES SENSE.
AND DO WE HAVE ON THE LIST THE DC THIS IS THE RIGHT PHRASE, I THINK DC COUPLING AND BATTERIES BEHIND THE, THE PV METER OR THE METER COLLAR DISCUSSION.
I THINK IT MAY BE SOME UNITS HAVE BEEN APPROVED.
I THINK LISA WAS TALKING ABOUT THIS A COUPLE TIMES AGO.
BUT, UM, AND MAYBE YOU JUST CAN SEND ME SOME INFORMATION ABOUT THAT OR KINDA LIKE TO PUT IT ON THE LIST AND JUST SEE AND SEE WHAT INFORMATION WE CAN GET.
DO YOU SEE COUPLING'S BEHIND THE METER DC COUPLING AND BATTERIES BEHIND THE PV METER AND I THINK THERE'S SOME STORM MODE THAT MIGHT STILL BE YET TO BE ADDRESSED IN SOME WAY.
I KNOW WHAT YOU'RE TALKING ABOUT.
I HAVE DAVE, I HAVE A, UM, COMMENT ABOUT THE TRANSMISSION STUDY THAT WE JUST DISCUSSED.
I UNDERSTOOD YOU, THE STAFF TO SAY THAT IT'S GONNA BE COMPLETED IN JUNE AND THEREFORE WE WON'T SEE IT UNTIL JULY.
AND I THINK WHAT RANDY IS ASKING IS IT'LL BE COMPLETED IN JUNE, PLEASE SEND IT TO US.
MAYBE YOU COULD JUST SEND IT TO US WHEN IT'S COMPLETED INSTEAD OF WAITING UNTIL THE FRIDAY BEFORE THE JULY, WHATEVER DATE THE JULY MEETING IS.
SO IS THIS LIKE A BRATTLE STUDY OR SOME VENDOR THAT'S GONNA BE PUBLIC INFORMATION ANYWAY.
LISA MARTIN, ACTING CHIEF OPERATING OFFICER.
SO THE, UH, CONSULTANT IS PRESENTING TO US IN JUNE AND THEN WE HAVE TO TAKE THAT INFORMATION AND PUT IT INTO A PRESENTATION SO THAT WE CAN COME PRESENT IT TO YOU IN JULY.
SO WE ARE, WE ARE ON THAT SAME SCHEDULE.
[01:45:02]
OKAY.CANDIDATE CAN, IS THIS CONSULTANT GONNA GIVE YOU A REPORT? YES.
CAN YOU NOT JUST SEND US THAT REPORT AND THEN MAKE A PRESENTATION TO US AT WHEN YOU HAVE TIME TO DO THAT IN JULY? I WILL DOUBLE CHECK.
CAN YOU LET US KNOW? YES, MA'AM.
SO ALONG, I'M ASSUMING ALONG THE WAY YOU'RE LOOKING AT SOME OF THEIR PRELIMINARY DATA AND IF THEY'RE REALLY OFF COURSE WITH SOME KIND OF ASSUMPTIONS OR ANALYSIS, YOU'D CATCH THAT.
SO I REALIZE THIS MIGHT BE A FAIRLY TECHNICAL REPORT.
AND SO IT COULD BE MISINTERPRETED IN SOME WAYS YOU'D LIKE TO JUST UNDERSTAND AND MAKE SURE THE RESULTS MAKE SENSE, ET CETERA.
BUT WILL THE REPORT BE PUBLIC? WILL THE PRESENTATION BY YOUR EXPERT BE PUBLIC? SO, UM, THE REASON I KNOW IT'S FRUSTRATING, AND WE'RE NOT GIVING YOU CLEAR ANSWERS ON THIS, BUT, UM, BASED ON THE REPORT, THERE COULD BE CRITICAL INFRASTRUCTURE INFORMATION IN THAT REPORT.
THERE COULD BE THE CONSULTANT'S OWN, UM, CONFIDENTIAL INFORMATION THAT THEY HAVE.
UM, SO WE REALLY JUST NEED TO BE ABLE TO SEE THAT REPORT, SYNTHESIZE SOME OF THAT INFORMATION AND MAKE SURE THAT WE CAN PRESENT IT IN A WAY THAT DOESN'T GET INTO ANY OF THE, UM, SENSITIVE INFORMATION THAT WE'RE NOT ALLOWED UNDER REGULATORY REQUIREMENTS TO, TO DISCLOSE PUBLICLY.
BUT MY QUESTION IS, IS THE, UM, WHEN THE REPORT, YOU SAID THEY'RE GONNA, THE EXPERT WILL BE MAKING, UH, PRESENTING THE REPORT TO AE, IS WILL THAT BE PUBLIC? NO, IT WON'T.
UNDER WHAT PROVISION IS IT NOT GONNA BE A PUBLIC DISCLOSURE? UH, UH, BECAUSE IT'S GOING, IT'S GOING TO BE AN INTERNAL MEETING.
YOU'RE TALKING ABOUT THE MEETING IN WHICH THEY'RE GOING TO BE PRESENTING IT TO US.
I DON'T KNOW WHAT, HOW IT'S GONNA HAPPEN.
I JUST HEARD WHAT YOU SAID THAT IT WAS, THERE WAS GONNA BE A PRESENTATION AND I JUST WANTED TO KNOW WHAT THAT, HOW THAT WAS GONNA OCCUR.
AND IF IT'S NOT A PUBLIC MEETING, I JUST, UH, WONDER IF THERE'S SOME PROVISION THAT ALLOWS IT TO BE NOT PUBLIC.
W ARE, ARE YOU SUGGESTING THAT WE HAVE THAT ALL OF OUR INTERNAL BUSINESS MEETINGS HAVE TO BE OPEN TO THE PUBLIC? I'M, NO, I'M ASKING YOU
SO IT'S REALLY, IT'S, IT'S REALLY GOING TO BE MORE BY EXCEPTION THAT SOMETHING IS, IS A PUBLIC MEETING.
I MEAN, JUST OUR DAY-TO-DAY BUSINESS IS NOT PUBLIC MEETINGS.
FOLLOWING UP ON THAT THOUGH, I I I, WHAT I WHAT I WAS ASKING FOR WAS NOT TO PARTICIPATE OR SIT IN A PUB IN, IN ONE OF YOUR BUSINESS MEETINGS, BUT I, THEY WILL BE PRESENTING A DOCUMENT MEANT IF THERE AND NO DOUBT IF THERE IS SOMETHING CONFIDENTIAL, THEY CAN REDACT THAT OR Y'ALL CAN, BUT IT'S THAT DOCUMENT THAT, THAT WE'D LIKE TO SEE AND CAN YOU ASSURE US, I CAN THE CASE WHERE THEY, THEY MAY HAVE TO REDACT INFORMATION AND TAKE SOME TIME TO DO THAT, RIGHT? RIGHT.
BUT, BUT UH, IF THERE'S SOMETHING THAT YOU CAN PROVIDE US, IF YOU CAN PROVIDE US WITH THE REDACT DOCUMENT, WITH THE REDACTIONS TIMELY, WE ARE, WE'RE RESCHEDULING, WE'RE RESCHEDULING THINGS TO ACCOMMODATE AUSTIN ENERGY.
AND, AND SO WE DON'T HAVE TO MEET RIGHT BEFORE THE ELECTRIC UTILITY COMMISSION MEETS.
WE CAN LOOK THINGS OVER AND, AND THINK ABOUT IT.
SO, UH, THE SOONER YOU CAN GET, GET US THE, UH, DOCUMENT RE AND WITH ANY ESSENTIAL REDACTIONS, IT WOULD BE APPRECIATED.
[01:50:01]
AND, AND, UM, AT THIS POINT, I HAVEN'T SEEN IT.I DON'T KNOW WHAT'S GOING TO BE IN IT.
IT'S GOING TO BE A DRAFT UNTIL WE'VE BEEN ABLE TO REVIEW AND VALIDATE WHAT THEY'VE PUT INTO THAT DOCUMENT.
SO, UM, YOU KNOW, REALLY WE'RE, WE'RE, YOU'RE ASKING ME TO OPINE A LITTLE BIT ON SOMETHING THAT I DON'T EXACTLY KNOW WHAT IT'S GOING TO LOOK LIKE OR WHAT STATE IT'S GOING TO BE IN AT THAT TIME, SO, BUT I, I TOTALLY UNDERSTAND THE, THE INTEREST IN IT.
AND AS SOON AS WE CAN, WE'LL, WE'LL MAKE SURE THAT, THAT WE GET WHATEVER'S PUBLIC.
AND WITH THAT, I THINK WE'RE DONE ANY, I HAVE A COUPLE QUESTIONS.
UM, YEAH, I MEAN, I PERSONALLY, UM, I'VE ALWAYS BEEN INTERESTED IN THE CUSTOMER ASSISTANCE PROGRAM AND, UM, Y'ALL PROBABLY GET AN UPDATE ON THAT EVERY YEAR AT SOME POINT.
UM, SO DEFINITELY WOULD WANT TO HEAR THAT.
BUT IF IT'S NOT COMING UP IN THE NEXT FEW MONTHS, IF I COULD JUST GET THE MOST RECENT PRESENTATION RIGHT.
UM, THAT WAS, UM, SHARED WITH THE E U C.
UM, AND ALSO IF, UM, IF THE COMMISSION HAVE, UH, OUTLINES, UM, LIKE PRIORITIES RIGHT, FOR THE CALENDAR YEAR, THE FISCAL YEAR, IF MAYBE THAT COULD GET TALKED ABOUT AT THE NEXT MEETING OR EMAILED, RIGHT? I'M PRETTY GOOD AT READING STUFF THAT GETS EMAILED TO ME.
SO, UM, AND THEN FINALLY, I KNOW THE, UM, EACH COMMISSION KIND OF DOES AN ANNUAL REPORT IN JULY, ROUGHLY, UH, THAT OUTLINES THE WORK FOR THE PRIOR YEAR.
SO IF, UH, IF THAT WOULD GET SENT OUT, THAT WOULD, YOU KNOW, THOSE WOULD BE HELPFUL TO ME JUST KIND OF GETTING ORIENTED TO THE WORK WE'LL BE DOING.
SO, UM, WHETHER THAT DIDN'T HAVE TO BE AGENDA ITEMS, BUT IF THERE IS INFORMATION AVAILABLE ABOUT THOSE, UH, SUBJECTS, UH, UH, BE, UH, GRATEFUL TO, UH, TO GET OR, UM, ORDER AT ONE OF OUR MEETINGS.
SO COMMISSIONER ALVAREZ, UH, UH, I, I SHARE YOUR INTEREST IN THE CAP PROGRAM.
UH, AND WE HAVE REQUESTED, UH, UH, REPORT IN THE NEXT QUARTER FROM AUS, UH, FROM AUSTIN ENERGY, UH, ALL OF WHICH IS CITY CITY COUNCIL IN THE RIGHT CASE, UH, APPROVED A SIGNIFICANT EXPANSION, UH, INVOLVING, UH, ENROLLMENT, UH, IN SCHOOLS, UH, THE SCHOOL LUNCH PROGRAM.
UH, AND UH, THAT'S MY UNDERSTANDING IS THAT'S UNDERWAY AND, UH, IT, IT TAKES A, TAKES A LOT OF TIME, BUT ALL OF WHICH IS, UH, MY UNDERSTANDING, UH, FROM SENIOR MANAGEMENT IS, IS IT WILL BE PART OF THE REPORTED ON THAT AND THE CAP PROGRAM MORE BROADLY IN THE NEXT QUARTER.
YEAH, I MEAN, AS LONG AS IT'S IN THE QUEUE WHERE THAT'S REALLY ALL, UH, I'M INTERESTED IN AND, UH, ANY PRIOR INFO THAT'S AVAILABLE THAT CAN BE SHARED IS ALSO, IS ALSO, UH, APPRECIATED AS WELL.
SO ROBERT, CAN YOU HELP THAT WITH THAT? SO ROBIN WILL HELP WITH THAT? YEAH.
YEAH, AND WE CAN, WE CAN EMAIL IF YOU HAVE QUESTIONS ABOUT WHAT I WAS ASKING FOR.
ANY OTHER QUESTIONS? JEREMY, YOU HAVE SOMETHING? I DO, I DO.
UM, WELL, I ACTUALLY HAVE TWO QUESTIONS.
THE FIRST IS, THIS IS THE POINT IN THE MEETING WHENEVER WE'RE REQUESTING, YOU KNOW, SOMETHING TO TALK ABOUT AND THEN THE SUBSEQUENT MEETING OR SUBSEQUENT MEETINGS, CORRECT.
WE, THIS IS AS GOOD A TIME AS ANY, YEAH.
SO I'D LOVE TO HEAR JUST A LITTLE BIT MORE FROM AE ABOUT THE CUSTOMER COMMUNICATION STRATEGIES AND IT, IT LIKELY HAS BEEN TALKED ABOUT BEFORE, BUT WE'VE, WE'VE SPOKEN ABOUT SEVERE WEATHER QUITE A BIT AND WE'VE TALKED ABOUT IT FROM AN OPERATIONAL PERSPECTIVE.
WHAT I HAVEN'T HEARD ABOUT A LOT IS HOW WE COMMUNICATE WITH CUSTOMERS DURING THOSE SEVERE WEATHER EVENTS.
SO IF IT'S NOT IN THE QUEUE, I'D LOVE TO HEAR JUST A LITTLE BIT MORE, UM, ABOUT OUR STRATEGY TO TALK TO CUSTOMERS AND NOT JUST RESIDENTIAL CUSTOMERS, BUT ALSO TO OUR COMMERCIAL CUSTOMERS.
YOU HAD A SECOND ONE? YOU HAD A SECOND ONE,
THE FIRST QUESTION WAS CLARIFYING WHAT PORTION OF THE MEETING THIS WAS.
SO THOSE WERE THE TWO QUESTIONS.
[01:55:01]
OH, OKAY.