May 13, 2024 Electric Utility Commission

ALLISON.

ANY COMMENTS? ? THANKS.

THANKS FOR THAT, ALLISON.

I THINK ANU, A NUMBER OF THE MEMBERS ON THE WORKING GROUP HAVE THAT SAME QUESTION, SO I THINK WE DO HAVE A PRESENTATION LATER AND WE'LL BE ABLE TO ASK A QUESTION ABOUT, ABOUT THAT REQUEST.

CORRECT? IS THAT OKAY? THANKS.

APPROVAL OF MINUTES FROM THE LAST MEETING? ANY I WANTED TO, SORRY.

THIS, ANY OTHER, ANY OTHER, OKAY.

UH, APPROVAL OF MINUTES.

[APPROVAL OF MINUTES]

UM, THERE WERE A COUPLE THINGS I WAS HOPING THAT WE COULD MAYBE GET ADDED TO THE MINUTES.

UM, I GUESS THE FIRST ONE THAT I, UH, HAD A NOTE ON WAS WE WERE ASKED AS A COMMISSION TO PROVIDE SUGGESTIONS FOR WHO SHOULD BE INVITED TO THE FOCUS GROUP MEETINGS OR WHATEVER THEY ARE.

UM, WORKSHOPS.

WORKSHOPS.

AND WE, A NUMBER OF US DID PROVIDE NAMES OF ORGANIZATIONS AND I THINK THAT SHOULD BE REFLECTED IN OUR MINUTES.

SO, YEAH.

SO DO YOU, DO YOU HAVE A SPECIFIC SUGGESTIONS? SO YOU'RE SAYING IN THE STAFF BRIEFINGS, MAYBE SAY SOMETHING LIKE, MEMBERS OF THE UC MADE SPECIFIC SUGGESTIONS ABOUT ORGANIZATIONS, UH, INCLUDING AND THEN THE LIST AND WE, I MEAN, I KNOW THAT LIKE THERE WAS THE E-U-C-R-M-C-I-I SUGGESTED SUNRISE AUSTIN STUDENTS FIGHTING CLIMATE CHANGE, PO PODER GABA.

I MAY HAVE SUGGESTED SOMETHING ELSE.

I DON'T REMEMBER REALLY.

IT SHOULD COME FROM THE, FROM THE VIDEO, BUT MAYBE WE COULD JUST, IF PEOPLE REMEMBER WHAT THEY PUT FORWARD, I JUST THINK IT SHOULD BE REFLECTED IN SOME WAY.

WE, WE HAVE DOWN AND WE CAN WE HAVE THEM NOTED.

IN REGARDS TO ONE OF THE RCAS, WHAT WAS IT NUMBER? THERE WAS AN RCA THAT WE HAD SOME DISCUSSION ABOUT AND THERE WAS SOME FOLLOW UP, BUT, UM, I JUST WOULD LIKE THAT REFLECTED IN THE MINUTES THAT THERE WAS, UM, THAT I ASKED FOR THE BREAKDOWN BETWEEN THE MAINTENANCE EXPENDITURE BY UNIT AND THE STAFF AGREED THAT THAT COULD BE PROVIDED.

SO I CAN ADD THOSE TO THE MINUTES.

OKAY, THANKS.

YEAH, NO PROBLEM.

APPRECIATE IT.

UM, AND THEN THE OTHER ONE WAS

[00:05:01]

SO MAYBE AFTER.

SO YEAH, AND, AND I REPLIED TO THE EMAIL, UM, BUT I'M JUST WANTING TO REFLECTED IN THE MINUTES.

SO I'M SORRY TO INTERRUPT, BUT TYPICALLY WE ONLY CAN, UM, REFLECT ACTION MINUTES.

SO WE DO PROVIDE THE FOLLOW UP THAT IS REQUESTED, UM, BUT WE DON'T PROVIDE THE, UM, THE FOLLOW UP ITEMS IN THE MINUTES AS THERE IN ACTION MINUTES.

SO, BUT IS IT ACCEPTABLE TO SAY SOMETHING, IT'S NOT ACCEPTABLE TO SAY SOMETHING LIKE AFTER THAT SAY SOMETHING LIKE, COMMISSIONER WHITE REQUESTED ADDITIONAL INFORMATION ABOUT THE BREAKDOWN OF, OF COSTS OR JUST SORT OF WHAT, WHAT HAPPENED? IS THAT NOT POSSIBLE? THAT'S NOT, UM, HOW THE CITY CLERK, UM, REQUESTS THAT THE MINUTES BE DONE.

OKAY, THAT'S FINE.

THEN JUST THE ONE ADDITION OF THE LIST OF ORGANIZATIONS.

ANYTHING ELSE THAT NEEDS REVISION OR DISCUSSION? I'LL MOVE, MOVE ADOPTION AS AMENDED.

LOOK AT ACTION ITEMS TWO THROUGH 10.

ALL IN FAVOR SAY AYE.

[Items 2 & 4 - 8]

ANY OF THEM WANT TO BE PULLED? NUMBER SIX, PLEASE.

SIX.

IT'S ON TREE MAINTENANCE.

TREE MAINTENANCE.

ANY OTHERS BESIDES SIX? WASN'T THERE ONE ON A POTENTIAL STUDY? SORRY, I'M HAVING TROUBLE FINDING THE, ARE YOU TALKING ABOUT THE ONE ON THE RESOURCE PLAN? OH YEAH, NUMBER EIGHT.

ARE WE GONNA DISCUSS NUMBER 11 OR YEAH, WE WILL.

I, A COUPLE QUESTIONS ON NUMBER THREE, BUT IT'S JUST CLARIFYING.

I DON'T KNOW IF YOU WANT THAT AS TO PULL IT SO WE CAN ASK THOSE QUESTIONS OR IF I SHOULD JUST ASK HIM THAT OR ONCE WE HAVE LIKE A MOTION TO APPROVE A CONSENT AGENDA OR SOMETHING.

UM, I TELL YOU WHAT, WE'VE GOT A TIME CONSTRAINT ON LINDA RIFE'S TIME.

I THINK SHE'S ONLY AVAILABLE TILL SIX 30.

I'M TRYING TO FIGURE OUT WHAT WAY TO EXPEDITE, UH, THE OTHER DISCUSSIONS OR THE NON-DISCUSSION.

GET A CONSENT VOTE ON THOSE.

AND YOU TAKE THE QUESTIONS.

I MEAN, ASSUMING THEY'RE, I JUST GOT ONE QUESTION.

THAT'S FINE.

SO YOU'RE, YOU HAVE EIGHT? YEAH.

SARAH NORRIS, DIRECTOR OF ENERGY EFFICIENCY SERVICES.

WHY DON'T YOU ASK YOUR QUESTION ON EIGHT, GET THAT OUTTA THE WAY.

UM, MY, MY QUESTION IS THIS, UM, THIS FIRM THAT YOU'RE GONNA HIRE TO LOOK AT, UH, A MARKET POTENTIAL FOR I ASSUME ENERGY EFFICIENCY AND DEMAND RESPONSE TYPE PRODUCTS, WILL THEY BE ABLE TO, UM, LOOK AT SPECIFIC RECOMMENDATIONS MADE BY THE WORKING GROUP? AND IN OTHER WORDS, WE, OUR OUR THOUGHT PROCESS WAS TO, TO WORK ON MAYBE ON LOOK AT THE METRICS IN A SLIGHTLY DIFFERENT WAY THAN HAS BEEN DONE IN THE PAST.

I'M JUST WONDERING IF THIS THIRD PARTY, IF THE THIRD PARTY HAS THE ABILITY TO KINDA, UM, YOU KNOW, THINK A LITTLE OUTSIDE THE BOX AND, AND LOOK AT DIFFERENT, DIFFERENT METRICS OR DIFFERENT WAYS TO MEASURE THE TYPE OF SAVINGS.

IN OTHER WORDS, FOR EXAMPLE, WE VERY MUCH WANT THEM TO LOOK AT WINTER SAVINGS PROGRAM, WHICH HAS BEEN A BIG ISSUE.

ARE THEY GONNA HAVE THAT CAPABILITY WITHIN THIS CONTRACT? TO DO THAT, WE HAVE TO PUSH THE, UM, CAN YOU HEAR ME OKAY? GOOD EVENING COMMISSIONERS.

UM, THE DNV CONTRACT, UH, PROVISIONAL SCOPE, WHICH WE'LL FINALIZE AFTER WE'VE FINALIZED OUR, AFTER WE'VE BEEN APPROVED TO MOVE FORWARD WITH THE CONTRACT, INCLUDES A 10 YEAR OUTLOOK OF TECHNICAL, ECONOMIC AND ACHIEVABLE PROGRAM POTENTIAL FOR ALL OF THE CES PROGRAMS, INCLUDING ENERGY EFFICIENCY AND DEMAND RESPONSE, BUT ALSO SOLAR AND,

[00:10:01]

AND ELECTRIFICATION MORE BROADLY.

UM, IT INCLUDES A CONSIDERATION FOR BASELINING OUR PROGRAMS TO DATE ON A GREENHOUSE GAS BASIS SO THAT THEN WHEN WE ARE COMING TOGETHER TO EVALUATE WHAT A NEW FRAMEWORK FOR GOALS MIGHT LOOK LIKE, WE CAN HAVE A SORT OF APPLES TO APPLES COMPARISON OF MEGAWATTS VERSUS GREENHOUSE GASES AS, AS A MEANS OF KIND OF DETERMINING WHAT THE MOST EFFECTIVE PATH FORWARD IS FOR IDENTIFYING, UM, IDEAL GOALS THAT, THAT MEET OUR EXPECTATIONS.

AND IT WILL ALSO INCLUDE WINTER PERFORMING PORTFOLIOS.

SO THEY CAN LOOK AT MEGAWATTS, MEGAWATT HOURS, GREENHOUSE GASES, THEY CAN LOOK AT ALL THAT CORRECT.

PEAK PRODUCTION.

IT'S, IT'S, IT'S BROAD ENOUGH FOR THEM TO CONSIDER DIFFERENT METRICS.

YES, WE OKAY.

AND WE'VE THANK YOU.

AND WE'VE INCLUDED THAT IN OUR PROVISIONAL SCOPE.

WE HAVE A SPECIFIC CALL OUT FOR A 10 YEAR OUTLOOK FOR THE TECHNICAL ECONOMIC AND ACHIEVABLE BOTH MAXIMUM AND REALISTIC PROGRAM ANALYSIS SPECIFICALLY FOR WINTER DSM MEASURES AND PROGRAMS. SO WE'VE SPECIFICALLY CALLED THAT OUT.

WE DID BASE OUR PROVISIONAL SCOPE ON THE RECOMMENDATIONS OF THE WORKING GROUP.

SO I DID WANNA SHARE THAT WITH YOU GUYS.

GREAT.

NOT THE SPECIFIC NUMERICAL RECOMMENDATIONS, BUT THE, YOU KNOW, THE SPIRIT OF THEM.

I'M, UM, YOU'RE DONE? YEAH, I'M DONE.

WHY DON'T WE GO BACKWARDS NOW? A SIX KIBA, YOU HAD A QUESTION ABOUT SIX? YEAH.

WELL, UM, MIKE, I GUESS MY QUESTION IS, UM, I'M WONDERING, YOU KNOW, I HAVE NO OBJECTION TO THIS, UH, THIS CONTRACT PER SE.

UH, I'M JUST CURIOUS IF THERE'S GOING TO BE THE ABILITY WITHIN IT TO TRACK PERFORMANCE.

AND BY THAT I JUST MEAN LIKE, YOU KNOW, ANY COMPLAINTS OR PROBLEMS THAT ARISE WITH ONE VENDOR VERSUS ANOTHER.

WELL, IS THERE, IS THIS SYSTEM GONNA BE ABLE TO TRACK THAT KIND OF THING? ELTON RICHARD, VICE PRESIDENT FIELD OPERATION, THERE WE GO.

ELTON RICHARD, VICE PRESIDENT FIELD OPERATIONS, UH, ESCALATIONS AND COMPLAINTS ARE TRACKED THROUGH OUR ESCALATION PROCESS.

THIS IS SPECIFICALLY ON THE PLANNING OF THE VEGETATION MANAGEMENT AND ENHANCEMENTS, WHICH WOULD INCLUDE MORE LICENSE FOR THE CONTRACTOR TO USE, AND THEN ALSO PLANNING ADJUSTMENTS IN THERE FOR OAK, OAK WILT OR BIRD HABITAT.

BUT ESCALATIONS ARE TRACKED THROUGH THE ESCALATION PROCESS ITSELF.

UM, SO I GUESS IN TERMS OF PLANNING, DOES LIKE, DOES THAT INCLUDE, DOES AUSTIN ENERGY FROM A, YOU KNOW, TOP DOWN SORT OF LEVEL DETERMINE LIKE WHAT TYPE OF SERVICE IS APPROPRIATE FOR A DIFFERENT LOCATION? IN OTHER WORDS, LIKE SHOULD A PERSON GO IN ON FOOT AND LIKE TRIM A CERTAIN TREE? OR SHOULD THEY LIKE CLEAR THE WAVE FOR A TRUCK TO COME IN? HOW DOES THAT GET DETERMINED? YEAH, SO WE USE DAVY TREE SERVICES NOT ONLY AS A VEGETATION UH, COMPANY TO DO THE VEGETATION TRIMMING.

WE ALL ALSO USE THEM FOR OUR PLANNING CYCLE.

AND WHAT DAVEY DOES IS THEY WILL GO OUT, WALK THE CIRCUIT DOWN, WHICH WOULD BE THE, THE EXTENSION CORD FROM THE SUBSTATION TO THE END OF IT.

AND WHAT THEY DO IS THEY ANNOTATE WHAT TYPE OF TREES ARE THERE, HOW FAR THEY'RE OVERGROWN, ANY VINES WITHIN THERE, WHETHER IT'S BACKYARD AND SPECIFICALLY FOR LIKE THE BALCONES, WE WORK WITH BALCONES GROUP IF, BECAUSE WE DO HAVE TO DO AN ACCESS TO GO IN TO TRIM THAT AREA.

SO YES, THEY, THEY DO LOOK AT THE TYPE OF INGRESS, EGRESS AND WHAT LACKS SHOULD BE REQUIRED TO DO THE TRIMMING.

ARE YOU PLANNING TO STICK AROUND FOR THIS MEETING OR NO? NO.

ALL RIGHT, THEN I'LL JUST, UM, I GUESS SHARE RIGHT NOW THAT, UM, THERE'S AN, UH, A SMALL KIND OF PRESERVE AREA THAT IS OFF OF GROVE, WHICH COMES FROM EAST RIVERSIDE AND IT'S ON THE WEST SIDE OF THE STREET AND THERE'S LIKE A TRAIL, I DON'T KNOW, NOT A SUPER LONG ONE, MAYBE A MILE OR SOMETHING LOOP.

IT'S REAL PRETTY.

UM, BUT SOMEBODY OBVIOUSLY WENT IN THERE RECENTLY TO DO WHAT LOOKED LIKE SOME PRETTY MINOR TRIMMING, BUT THEY CLEARLY DROVE A BIG TRUCK IN AND JUST KIND OF, YOU KNOW, LIKE TORE IT UP.

SO THAT'S WHY I'M ASKING ABOUT LIKE, HOW Y'ALL ARE TRACKING, LIKE HOW THIS IS GOING ABOUT.

'CAUSE OBVIOUSLY Y'ALL NEED TO DO TREE TRIMMING, BUT, UM, WHEN IT'S DESTRUCTIVE ON, ESPECIALLY UNNECESSARILY, SO I THINK IT, UH, YOU KNOW, CAN ENGENDER SOME NEGATIVE SENTIMENT, SO MAYBE WE CAN CATCH UP ANOTHER TIME'S.

IT'S A TOUCHY SUBJECT TO BEGIN WITH.

YES, BECAUSE WHEN YOU'RE TAKING A 26,000 POUND TRUCK IN, UH, TO DO IT, IT'S, IT'S USUALLY ABOUT A 15 FOOT PATH AND IT'S USUALLY CLEAR TRIMMED, WHICH MEANS IT GOES FROM SKY TO GROUND.

SINCE SOME OF THESE HAVEN'T BEEN TRIMMED IN 16 YEARS OR OVERGROWN FOR 16 YEARS, WHEN IT IS TRIMMED TO STANDARD, IT'S LIKE, HOLY CRAP, YOU KNOW, BEFORE IT WAS LIKE, WOW, THIS LOOKED GOOD AND NOW IT'S 15 FEET BACK AND YOU'RE LIKE, OH MAN.

SO IT'S VERY OBVIOUS WHERE THE EQUIPMENT GOES IN.

AND THEN USUALLY AROUND THE VEGETATION AND THE POLES, IT'S ALSO TRIMMED THERE.

SO ONE OF THE BIGGEST ISSUES WE'VE GOT, AND WE HAD THE SAME THING WITH COMBS,

[00:15:02]

SO YEAH, SHOOT ME THE ADDRESS OFFLINE AND WHAT I'LL DO IS I'LL CHECK INTO IT.

UH, I'LL EVEN MEET YOU OUT THERE IF YOU WANT TO, AND WE'LL WALK THROUGH IT.

I APPRECIATE THAT, MA'AM, THAT I'LL BE MOVE ON TO ANY OTHER QUESTIONS ON THAT ONE? NO.

THANKS GUYS.

RAUL, YOU HAD A QUESTION ON NUMBER THREE.

WAS THERE A QUESTION ON THREE? YEAH, I HAVE QUESTIONS ON THREE AND 10, SO MAYBE WE SHOULD JUST PULL 'EM SO THAT WE CAN GET TO MS. RICE AND HER ITEM I AND WE CAN VOTE ON THE CONSENT IF NEEDED.

I THINK I'M JUST TRYING TO GET THROUGH IT ALL, ALL THE QUESTIONS, IF POSSIBLE TO NOT, I THINK WE'RE RUNNING OUTTA TIME.

YEAH, THAT'S WHAT IT SEEMED LIKE TO ME.

THAT'S WHY I'M LIKE, MAYBE I SHOULD JUST PULL THREE AND 10 THAT WAY, , BUT I CAN ASK MY QUESTIONS.

TWO.

UM, OKAY, WELL, AND RANDY HAS A QUESTION ON NINE TOO.

SO WHY DON'T WE VOTE ON 2, 4, 5, 7.

YOU CAN PUT SIX IN THERE AND 6, 7, 8.

OKAY, SO VOTE ON 2, 4, 5, 6, 7 AND EIGHT.

DO I HAVE A MOTION? SO MOVED.

I SECOND.

GOT THAT.

ALL IN FAVOR SAY AYE.

AYE.

OKAY, GOT THOSE.

AND WE'LL HOLD THE REST FOR AFTER OUR DISCUSSION.

TO LINDA RIFE'S DISCUSSION.

SO LET'S MOVE

[15. Staff briefing and process update on the Resource, Generation, and Climate Protection Plan by Lisa Martin, Deputy General Manager and Chief Operating Officer and Lynda Rife, President of Rifeline.]

GOOD EVENING COMMISSIONERS.

LISA MARTIN, DEPUTY GENERAL MANAGER AND CHIEF OPERATING OFFICER.

I'M HERE TO INTRODUCE LINDA RIF, UM, WHO WILL BE HERE TO GIVE YOU AN UPDATE ON OUR RESOURCE GENERATION PLAN, UH, ENGAGEMENT EFFORTS.

LINDA, THE FLOOR IS YOURS.

SO I DON'T KNOW HOW TO TURN MY CAMERA ON.

I'VE TRIED AND IT DIDN'T LET ME, SO I'LL JUST TALK AND HOPEFULLY , I'M, I'M HERE, I APOLOGIZE.

I'M OUT, UH, OF THE STATE RIGHT NOW.

JUST AS A REMINDER, THIS, UM, THE RESOURCE GENERATION PLAN UPDATE.

UM, WE ARE, UM, WAS HIRED AS A, TO SERVE AS A THIRD PARTY, UM, TO CREATE A COMMON UNDERSTANDING OF AUSTIN ENERGY'S MISSION IN DELIVERING CLEAN, AFFORDABLE, RELIABLE ENERGY AND EXCELLENT CUSTOMER SERVICE.

ENSURE THAT AUSTIN ENERGY HEARS FROM A DIVERSE VOICES WHOSE VALUES ARE REFLECTED IN THE MISSION OF RELIABILITY, SUSTAINABILITY, AND AFFORDABILITY, CREATE A COMMON UNDERSTANDING OF ENERGY OPTIONS AND TECHNOLOGY.

AND THEN ITS SUBSEQUENT COST AND BENEFITS.

THIS IS WHERE A LOT OF THE, THE DISCUSSION, I THINK, WILL TAKE PLACE AND THEN DEVELOP AN INFORMED CONSENT PROCESS.

WE DID TALK THIS OVER WITH THE COUNCIL, UM, A COUPLE WEEKS AGO, UM, AND HEARD THAT THEY DID LIKE HEARING, UM, BRINGING IN SOME OTHER VOICES.

IF I GO TO THE NEXT SLIDE, HOW WE'RE GOING TO DO THAT IS, UM, TO HOLD A SERIES OF STAKEHOLDER WORKSHOPS WITH INVITATIONS TO ORGANIZATIONS.

BUT THAT DOES NOT MEAN THAT THE ELECTRIC UTILITY COMMISSION OR THE AUSTIN ENERGY UTILITY OVERSIGHT COMMITTEE ISN'T A BIG PART OF THIS WHOLE PROCESS ALL THE WAY THROUGH.

AND A LOT OF DISCUSSION WILL BE HAD WITH YOU AS WELL.

UH, IN ADDITION, AUSTIN ENERGY IS A MEMBER OF THAT WORKSHOP TO DISCUSS IN MORE DETAIL ANYTHING THAT THEY MIGHT NEED.

SO THE NEXT SLIDE TALKS ABOUT WHO WE'RE INVITING.

WE'VE IDENTIFIED BASED ON INPUT FROM YOU VERSUS THE COUNCIL.

UM, AND WE ARE STARTING TO INVITE PEOPLE.

WE'RE LOOKING AT FIVE TO SEVEN REPRESENTING ORGANIZATIONS REPRESENTING SUSTAINABILITY.

THOSE ARE ENVIRONMENTAL ADVOCATES, UH, CLEAN ENERGY PRACTITIONERS, ET CETERA.

UH, WE HAVE FIVE TO SEVEN, UH, REPRESENTING RELIABILITY, HOSPITALS, NURSING HOMES, MANUFACTURING, GROCERY STORES, FIVE TO SEVEN REPRESENTING AFFORDABILITY, HOUSING ADVOCATES, NONPROFITS, SMALL BUSINESS, AND THEN FIVE TO SEVEN REPRESENTING DEMOGRAPHICS AND GEOGRAPHIES, STUDENTS, SENIOR CITIZENS AND IMPACTED COMMUNITIES.

MEETINGS WILL BE OPEN TO THE PUBLIC.

I KNOW THAT THAT WAS A QUESTION HAD COME UP BEFORE.

UM, THE, UH, IF WE LOOK THROUGH THE AGENDAS, I KNOW I'M GOING PRETTY QUICKLY HERE, BUT IT'S HARD TO SEE YOU AND LOOK AT THE, UM, THE POWERPOINT.

BUT OUR FIRST WORKSHOP WILL

[00:20:01]

BE ALL JUNE, UH, SEVENTH, FROM 1130 TO ONE 30.

THAT'S A FRIDAY.

UM, AND THAT'S JUST REALLY GONNA BRING EVERYBODY UP TO SPEED.

ELECTRICITY 1 0 1 COST AND ENERGY'S MISSION AND DEFINITIONS, THOSE SHARED VALUES, JUST KIND OF TALKING ABOUT WHAT'S IMPORTANT TO DIFFERENT PEOPLE.

AND THEN THE IDEA OF BUILDING A GENERATION PLAN.

IN JULY, WE'RE HOLDING LIKE A WORKSHOP A MONTH IN JULY.

WE'RE TALKING ABOUT THE CURRENT AND FUTURE STATE RISK INTOLERANCES, ENERGY AND TECHNOLOGY OPTIONS, AUGUST WORKSHOPS AND VALUE MEASUREMENTS AND GOAL SETTING FRAMEWORKS, AND SOME BALANCING OF PRIORITIES.

AND THEN KIND OF THE SEPTEMBER WILL BE A COMBINATION OF LOOKING BACK THROUGH ALL THE THINGS THAT WE, UM, HAD BEEN PULLING TOGETHER AS WE'VE GONE ALONG.

UM, THESE WORKSHOPS ARE GONNA BE HELPED OUT ENORMOUSLY BY, UM, MICHAEL WEAVER, WHO I'VE HEARD GREAT THINGS ABOUT IN THE PROCESS.

UM, AND THEN ALSO WITH THE MODELING CONSULTANT FIRM THAT WE ARE CURRENTLY WORKING ON.

SO, UM, WE DO BELIEVE THAT, YOU KNOW, I KNOW PEOPLE REALLY WANTED US TO TRY TO FINISH UP BY YOUR SEPTEMBER MEETING, AS I STATED PREVIOUSLY, I THINK THAT WILL BE VERY HARD, BUT WE'RE WORKING VERY HARD TO STILL TRY TO PULL EVERYTHING TOGETHER HERE BY THE END OF SEPTEMBER.

UM, SO WITH THAT, I GUESS, OR THAT THERE'S ANY QUESTIONS THAT ANYBODY HAS, UH, THIS IS, UH, COMMISSIONER CHAPMAN.

A COUPLE QUESTIONS.

UH, WHERE, WHERE IS THE JUNE 1ST? WHERE IS THE WORK JUNE WORKSHOP? UM, THE FIRST WORKSHOP IS GONNA BE HERE AT THERE WHERE YOU ARE.

SHE, UM, IN AUSTIN ENERGY, WE ARE PLANNING, WE ARE OPENING THIS UP TO SOME OF THE NONPROFITS THAT HAVE LARGER SPACES, UH, TO BE ABLE TO HOST THEM AT THEIR SPACE AS WELL.

UM, BUT THIS FIRST ONE IS THERE AT AUSTIN ENERGY, WHERE YOU ALL ARE.

MY SECOND QUESTION IS, UH, HOW OF, OF THE GROUP YOU HAD THE DIFFERENT TYPES OF, OF GROUPS THAT, UH, YEP.

ARE THEY GOING TO BE PARTICIPATING AT EVERY WORKSHOP OR, UH, OTHER WORDS? YEAH, AT EVERY, AT EVERY WORKSHOP SO YOU CAN HEAR FROM THE DIFFERENT VOICES BASED ON THE DIFFERENT INFORMATION.

IF WE GO BACK A SLIDE, UM, AND LOOK AT THAT, SO, RIGHT.

YEAH, THE, WHAT WE'RE ASKING THE INDIVIDUALS FOR, YOU KNOW, I KNOW THAT THERE ARE SEVERAL PEOPLE FROM PUBLIC CITIZEN AND SIERRA CLUB.

UM, THEY'RE ON OUR LIST FOR SURE.

AND WE WOULD ASK, UM, THEIR MEMBER TO PARTICIPATE IN FOUR MEETINGS, TWO HOURS EACH FOR APPROXIMATELY ONCE A MONTH.

I, I SEE.

SO, SO THERE WILL BE CONTINUITY AMONG THE GROUP.

AND, UH, UH, ONCE YOU FINALIZE, ONCE YOU FINALIZE, UH, THE VARIOUS GROUPS, WOULD YOU, UH, WOULD YOU MIND SENDING US, UH, ABSOLUTELY.

INFORMATION, INFORMATION WHO THE PARTICIPANTS ARE? YEAH, ABSOLUTELY.

ABSOLUTELY.

AND IF ANYBODY HAS ANY THOUGHTS WE'RE, YOU KNOW, WE GOTTA GET PEOPLE THAT ARE WILLING TO, TO COME AND SPEND, YOU KNOW, EIGHT HOURS OR SO WITH US.

SO WE'RE, WE'RE STARTING TO MAKE THOSE ASKS OR STARTING TO REACH OUT THIS WEEK TO THOSE GROUPS.

BUT IT WOULD BE GREAT TO HEAR FROM ANYBODY.

LOOK FORWARD TO THAT INFORMATION.

IS WE, WE MAY WELL HAVE MORE THAN FIVE EUC MEMBERS THAT WANT TO SIT IN.

SO HOW DO WE DO THAT? IS IT, SINCE IT'S OPEN TO THE PUBLIC? YEAH.

UM, THE EUC, IT, THE, IT'S BASICALLY THE EUC MEMBERS THAT ARE LIKE THE SIERRA CLUB.

LIKE I KNOW THERE'S ONE AND PUBLIC CITIZEN IS ONE.

I KNOW THAT THERE'S, UT MIGHT BE SOMETHING IF THEY, IF THOSE ORGANIZATIONS WANT THAT PERSON TO BE THEIR REPRESENTATIVE, THEN THEY ARE MORE THAN WELCOME TO BE THERE.

OTHERWISE WE'RE OPEN, JUST LIKE THESE MEETINGS ARE OPEN.

BUT WE WOULD LIKE THE PARTICIPANTS TO BE THOSE REPRESENTING THOSE ORGANIZATIONS.

SO WELCOME TO LISTEN.

UM, AND AUSTIN ENERGY, LIKE I SAID, WILL BE ONE OF THOSE ACTIVE PARTICIPANTS IN THESE MEETINGS.

UM, BUT WE WERE ASSUMING THAT THE MEMBERS WOULD BE LISTENING UNLESS THEY'RE, UH, PICKED BY ONE OF THEIR ORGANIZATIONS.

LET ME CLARIFY, AMY, IS THERE ANY ISSUE IF WE HAVE SIX COMMISSIONERS THERE WITH OPEN MEETINGS? OH, SORRY.

UH, UH YES.

UM, WELL, WE WOULD HAVE TO POST IT AS A MEETING WHERE NO BUSINESS OF THE EUC WOULD BE TAKING PLACE.

AND IF THAT WAS GONNA HAPPEN, WE WOULD ASK IF, UM, WE'LL ASK FOR, UH, AN ATTENDANCE WILL ASK WHO'S GONNA BE GOING SO WE KNOW WE HAVE TO PO UH, POST IT OR NOT.

SO JUST IN CASE, WHY DON'T WE DO THAT THEN, RIGHT? BECAUSE I THINK, YEAH.

UH, WILL THESE MEETING, WE'RE ALSO GONNA HOPEFULLY, UM, PROVIDE SOME INCENTIVES FOR THOSE NONPROFITS TO HELP US, BUT THAT ISN'T TOTALLY WORKED OUT YET.

WE'LL WORK WITH YOU GUYS.

WHAT'S THE, WHAT'S THE TIME OF THE MEETING ON JUNE 7TH? 1130 TO ONE 30 AND WE WILL SERVE LUNCH.

[00:25:03]

UH, WILL, WILL THESE MEETINGS BE FILM, BE FILMED OR OTHERWISE RECORDED? I HADN'T REALLY THOUGHT ALL THAT THROUGH.

UM, LIKE I SAID, THEY ARE OPEN TO THE PUBLIC.

I DO WANT PEOPLE TO FEEL COMFORTABLE MAKING WHATEVER STATEMENTS THAT THEY WANT.

I CAN I GET BACK WITH YOU ON AN ANSWER ON THAT ONE.

CERTAINLY, CERTAINLY.

THANKS, LINDA.

UM, I, I APPRECIATE THAT MAYBE, YOU KNOW, IT FEELS HURRIED OR SOMETHING MAYBE TO, YOU KNOW, DO THIS FASTER THAN A MEETING A MONTH.

BUT THIS BODY DID ASK THAT WE BE ABLE TO TAKE UP THE RESOURCE PLAN AT OUR SEPTEMBER MEETING.

AND, YOU KNOW, AS YOU CAN TELL, WE MEET NEAR THE START OF THE MONTH.

SO I'M WONDERING IF YOU WOULD BE WILLING TO CONDENSE THIS A LITTLE BIT TO GET YOUR WORK DONE BY THE, YOU KNOW, BY THE END OF AUGUST SO THAT WE CAN, YOU KNOW, STILL HAVE ON THE TABLE TO, UH, YOU KNOW, TO DO OUR BUSINESS HERE AT THE EUC AT OUR SEPTEMBER MEETING.

YEAH, I, I GET THAT.

HERE'S, HERE'S PART OF THE PROBLEM.

I MEAN, I CAN HOLD MEETINGS, BUT THE PROCESS WOULD HAVE TO BE, THEY'RE BRINGING IN A COUPLE OF DIFFERENT PEOPLE.

AND I THINK YOU AND I TALKED ABOUT MICHAEL WEBER AND WHAT HE COULD BRING, AND THEN ALSO THIS OTHER GROUP THAT CAN LOOK AT SOME TRADE OFFS AND SOME OTHER THINGS.

SO WE HAVE TO, TO GIVE THEM SOME TIME TO DO THEIR WORK AND SOME TIME TO RESPOND BACK TO WHATEVER WE HEAR AT THESE MEETINGS.

I WILL TRY TO CONTINUE TO CONDENSE THIS.

MAYBE WE CAN GO FASTER THAN THIS, BUT I ALSO DON'T WANNA PROVIDE, YOU KNOW, NOT PROVIDE YOU MISINFORMATION, UH, BY ANY, BY ANY MEANS, THINKING THAT IT COULD GO FASTER.

I CAN TELL YOU THAT WE CAN TRY, BUT THIS IS KIND OF OUR BEST GUESS OF WHERE THIS WORK'S GOING.

AND I DON'T KNOW IF AUSTIN ENERGY OR ANYBODY ELSE WANTS TO POP IN, 'CAUSE I'M NOT THE ONE WHO'S HIRING THESE PEOPLE FOR SURE.

OR KNOW THE AMOUNT OF WORK THAT THEY WANT.

IT'S JUST HOW I'VE HEARD THINGS.

IT LOOKS LIKE LISA'S GONNA, YEAH.

WHERE THEY DISAGREE, MAKE SURE WE CAN UNDERSTAND THE REASONINGS BEHIND ALL OF THAT.

THANKS, LINDA.

NO, YOU GOT IT RIGHT ON THE, UM, NOTE.

SO THERE'S A LOT OF DIFFERENT WORK STREAMS THAT WE'RE TRYING TO ASSIMILATE AND MAKING SURE THAT ALL OF THE DIFFERENT COMPONENTS FEED INTO EACH OTHER.

SO THE RFPS, THE THIRD PARTY ANALYTICS FIRM, AND, UM, DR. WEBER, UH, AND WEBER ENERGY GROUP'S RESEARCH, AND THEN ALSO, UM, UH, LIFELINE AND THEN JUST THE CONSULTING WITH ALL THE OTHER PARTIES THAT WE NEED TO COORDINATE WITH.

SO WE'RE GONNA DO OUR VERY BEST.

I WILL SAY THAT AS WE LINE IT OUT, WE STILL THINK WE CAN GET, WE WE'RE, CAN GET TO THE END OF THE CALENDAR YEAR, UM, AND, UM, HAVE TIME FOR Y'ALL TO REVIEW AND VOTE, YOU KNOW, IN TWO DIFFERENT MEETINGS.

SO I, I THINK WE'RE, UM, WE'RE STILL WORKING THROUGH A, A LITTLE BIT OF THAT TIMELINE, TRYING TO SEE HOW IT ALL LINES OUT DOING OUR VERY BEST.

UM, BUT YOU MAY BE REVIEWING THIS IN OCTOBER, SO THEN WE WOULDN'T GET TO POTENTIALLY VOTE ON SOMETHING UNTIL NOVEMBER.

LIKE YOU'RE, YOU'RE REALLY PUTTING THE SQUEEZE ON COUNCIL.

LIKE I DON'T THINK THAT'S, YOU KNOW, A FULL EFFORT TO GET THIS TO COUNCIL THIS YEAR.

LIKE, RESPECTFULLY, I JUST, THINGS TAKE LONGER THAN THAT TO GET THROUGH THE PROCESS.

WE, WE, OUR INTENTION IS TO ALSO BRING COUNCIL ALONG ALL ALONG THE WAY.

SO, AND WE DO THINK THAT WE'LL HAVE SUFFICIENT TIME TO, UM, DO ALL OF THE ABOVE.

SO IF WE CAN GET IT TO, TO, UH, EUC IN SEPTEMBER, WE WILL.

UH, I JUST DON'T WANNA MAKE THAT, UH, PROMISE.

AND BECAUSE AGAIN, NUMBER OF OTHER SWIM LANES WE HAVE TO COORDINATE IN AT THE SAME TIME, I MIGHT HAVE ANOTHER COMMENT, BUT IT LOOKS LIKE I, I ACTUALLY HAVE QUESTIONS MORE FOR LISA, SO I DON'T, UH, IF YOU HAVE, IS THAT OKAY.

SO, UM, COULD YOU, SO YOU'VE GOT THE THREE DIFFERENT CONTRACTS, UH, THE ONE WITH THE FACILITATOR, BUT THEN THE OTHER TWO, DO YOU HAVE ANY WRITEUP OF EXACTLY WHAT, UH, WHAT THE WEBER GROUP AND THE THIRD PARTY ANALYTICS, WHAT THEY'RE BEING, OR, OR COULD YOU AT LEAST DESCRIBE WHAT THEY'RE BEING BROUGHT IN FOR? UM, I GUESS MY REAL QUESTION IS, YOU MENTIONED SOME MODELING.

ARE THEY GOING TO USE THE SAME YOU PLAN THAT WE WOULD USE OR WHAT? I'M, I'M NOT EXACT.

I'M NOT VERY CLEAR ON WHAT THEY'RE ACTUALLY DOING AND WHAT SERVICES.

YEAH, AND WE WERE TALKING ABOUT THIS, UM, EARLIER TODAY.

SO WE'RE WORKING, WORKING ON PULLING TOGETHER KIND OF A SHORT SUMMARY OF WHAT EACH PARTY'S ROLE WILL BE, BUT AT THE HIGHEST LEVEL I CAN, I CAN DESCRIBE, UM, SO THIRD PARTY MODELING WILL BE USING PROBABILISTIC SCENARIOS AND MODELING.

UM, WE CAN CAN, UH, PAIR THAT WITH THE COST PRODUCTION MODELING.

THAT IS YOU PLAN TO, UM, THEN SEE WHERE THE TWO MODELS AGREE AND

[00:30:01]

EACH MODELING TEMPLATE WILL HAVE ITS OWN STRENGTHS.

AND SO WE'RE WORKING ON DOCUMENTING THAT AS WELL AS WE WORK WITH, UH, A THIRD PARTY FIRM TO DRAFT THE FULL SCOPE OF WORK TO MAKE SURE THAT WE CAN INCORPORATE THE ANALYSIS THAT NEEDS TO BE DONE, INCLUDING SCENARIOS THAT INVOLVE THE UC WORKING GROUP'S PROPOSAL.

SO WE'RE STILL TRYING TO MAKE SURE WE GET ALL OF THOSE POINTS TOGETHER.

UM, SO, UH, AND THEN IN TERMS OF WEBER ENERGY GROUP, UM, THAT IS, UH, IS GONNA FEED INTO SOME OF THE, UM, THE WORKSHOPS THAT, UM, LIFELINE IS CONDUCTING.

UM, AND SO THEY'LL TALK ABOUT, YOU KNOW, THE CURRENT AND THE FUTURE STATE OF, UM, AUSTIN ENERGY, UM, AND ERCOT, UH, LOAD GROWTH, UH, OPTIONS, UH, YOU KNOW, ENERGY AND TECHNOLOGY OPTIONS IN VARIOUS COMPONENTS THERE.

AND THAT'S KIND OF THE SHORT TERM SCOPE TO HELP FEED INTO, UM, SOME OF THESE MEETINGS, THE DESIGN WORKSHOPS, AND THEN ALSO HELPING TO INFORM, UM, THE, UM, U UH, THE A UOC UTILITY OVERSIGHT COMMITTEE.

OKAY, THAT'S REALLY HELPFUL.

SO THERE'LL BE SOME SORT OF A DOCUMENT THAT SAYS WHAT YOU SAID YES RIGHT NOW.

OKAY, GREAT.

UM, AND THEN YOU HEARD THE COMMENT, I, I BELIEVE YOU HEARD THE BEGINNING OF THE MEETING, YOU HEARD THE COMMENT EARLIER FROM ALLISON.

IS THERE EITHER AS PART OF THIS WORKSHOP OR, OR SEPARATELY SOME SORT OF SPACE TO, TO EITHER RESPOND TO THE WORKING GROUP RECOMMENDATIONS OR HAVE SUCH A MEETING AND WHEN WOULD IT MAKE SENSE FOR SOMETHING LIKE THAT TO TAKE PLACE? SO I THINK THAT THE, UM, EUC WORKING GROUP'S RECOMMENDATIONS WILL COME INTO PLAY IN A NUMBER OF PLACES.

SO YOU HEARD FROM SARAH NORRIS EARLIER TODAY SAYING THAT THAT HELPED INFORM THE SCOPE FOR THE, UH, CONTRACT ON DEMAND SIDE MANAGEMENT MARKET POTENTIAL.

I THINK IT'S ALSO GOING TO INFORM THE SCENARIO MODELING AND THE, THE ASSUMPTIONS THAT GO INTO, YOU KNOW, THE, UM, THAT THE, THE, UH, THIRD PARTY ANALYTICS FIRM WILL INCLUDE.

UM, AND WE'RE TRYING TO FIGURE OUT HOW CAN WE, UM, USE ONE OF THESE MEETINGS TO HELP, UM, DISCUSS SOME OF THOSE ITEMS AS WELL.

SO I DO THINK THERE'S GOING TO BE A NUMBER OF OPPORTUNITIES.

WE'RE STILL TRYING TO PUT A FINE POINT ON IT.

UM, AND AS WE, UH, GET A LITTLE BIT MORE DETAILS, WE'LL WE'LL CIRCLE WITH CHAIR AND VICE CHAIR TO SEE IF THAT WILL, WE'LL WORK FOR THE TEAM AS A WHOLE.

MM-HMM, .

SO I GUESS ASIDE FROM THE TIME TIMELINE, WHICH I THINK IS REALLY IMPORTANT, AND I I HOPE Y'ALL REALLY ARE GOING TO, TO LOOK AT HOW YOU CAN CONSOLIDATE IT, WHICH SEEMS LIKE IT WOULD JUST BE BY PUSHING THINGS LIKE, YOU KNOW, MAYBE TO A THREE WEEK INSTEAD OF LIKE A MONTHLY SCHEDULE.

UM, I THINK WHAT I HEARD AT OUR MARCH MEETING WAS THE, YOU ALL WANTED TO RESET, TRY TO ESTABLISH, YOU KNOW, WHAT THE ISSUES ARE, HOW WE CAN, UM, ADDRESS THEM AND MEET AND MEET ALL THE OBJECTIVES, UM, OF AUSTIN ENERGY IN THE COMMUNITY AND, YOU KNOW, TRY TO PROBLEM SOLVE FROM THERE.

AND THAT SOUNDED REALLY GOOD.

AND I DON'T THINK THIS IS BAD, BUT I GUESS I'M JUST A LITTLE BIT PERPLEXED AS TO WHY MORE OF THE EUC, YOU KNOW, AT LEAST UP TO OUR, YOU KNOW, MAX OF FIVE.

UM, AND THE RMC WOULD NOT BE INTEGRATED MORE FULLY INTO THIS PROCESS IF THIS SEEMS LIKE IT'S NOW INTENDED TO BE LIKE A, YOU KNOW, AT LEAST A, A MORE LIMITED VERSION OF A RESOURCE PLANNING WORKING GROUP.

LIKE, I, I JUST, I'M NOT SURE WHY WE'RE, WHY IS THERE THIS DIVIDING AND I'M NOT REALLY EVEN SPEAKING FOR MY, LIKE, IT SOUNDS LIKE PROBABLY I'LL HAVE AN INVITATION TO BE AT THE TABLE EITHER WAY, BUT, UM, I WOULD JUST LIKE US TO BE ABLE TO LIKE COLLECTIVELY DO OUR WORK MORE EFFICIENTLY.

AND IT SEEMS LIKE THE MORE PEOPLE THAT YOU CAN GET ON THE SAME PAGE, WHICH I THINK IS WHAT THIS IS ABOUT IN THESE MEETINGS, THE MORE EFFECTIVE WE CAN BE THEN AT MAKING A RECOMMENDATION HERE THAT MEETS Y'S NEEDS AND EVERYBODY'S NEEDS.

SO I JUST, YEAH, JUST PUTTING THAT OUT THERE THAT I THINK WHETHER IT'S JUST YOU COULD HAVE SEPARATE MEETINGS WITH, I GUESS THE EUC AND RMC OR INTEGRATE HERE, I HOPE THAT ONE OF THOSE CAN HAPPEN SO WE DON'T JUST END UP, YOU KNOW, HAVING SOMETHING COME TO THE EUC THAT OR THE RMC THAT LIKE, THE VAST MAJORITY OF OUR MEMBERS HAVE NOT BEEN PART OF CRAFTING YOU WHAT I'M SAYING, LIKE, CAN WE BRING MORE PEOPLE ALONG INTO THIS THAT ARE GONNA NEED TO LIKE

[00:35:01]

GET ON BOARD AT THE END.

LINDA, ARE YOU STILL ON? YEAH, NO, I'M, I'M HERE.

UM, I GUESS A COUPLE OF THINGS, AND MAYBE, YOU KNOW, ONE, WE TALKED ABOUT YOU AND, AND SEVERAL PEOPLE FROM BOTH THE EUC AND THE RMC THAT COULD, COULD COME ON THROUGH ORGANIZATIONS.

UM, I JUST HEARD THAT WE KIND OF HIT A WALL ON SOME DIFFERENT THINGS AND WAS TRYING TO HEAR FROM SOME MORE VOICES THAT WERE MORE DIVERSE.

AND SO, UM, THAT'S WHAT THIS PLAN WAS ABOUT.

I ALSO UNDERSTOOD THAT, UM, AND IT PARTICULARLY ONE OF YOUR, UM, MEETINGS, I THINK JUNE, UM, WHERE WE CAN SPEND A LITTLE MORE TIME TALKING THROUGH YOUR GROUP IN PARTICULAR WITH ALL OF THAT.

SO I, I DON'T THINK IT'S, I DON'T THINK IT'S DUPLICATIVE BECAUSE I THINK YOU ALL ARE SO AHEAD OF WHERE ANYBODY ELSE MIGHT BE.

UM, I'M JUST TRYING TO HEAR HOW TO, HOW TO PUT SOME CLOSURE TO THIS, BUT ALSO BRING SOME, A LITTLE MORE VOICES TO THE WAY AND, AND PUT IT IN A PLACE WHERE WE CAN HAVE SOME JUST GOOD CONVERSATIONS, BUT WE CAN KEEP LOOKING AT THAT, UM, AND SEEING IF THERE'S A DIFFERENT WAY TO COME ABOUT DOING THAT.

UM, BUT I WOULD ENCOURAGE ANYBODY WHO WANTS TO BE ON IT TO TALK TO SOME ORGANIZATIONS AND TELL US, YOU KNOW, THAT THEY WANNA BE ON IT.

I JUST WOULD RATHER IT BE ORGANIZATIONS THAN JUST INDIVIDUALS.

YOU KNOW, I PUT SO AND SO ON HERE BECAUSE YOU KNOW THAT THEY, THEY CARE ABOUT THIS SUBJECT, BUT IT'S BETTER, I THINK TO HAVE A, A REAL REASON FOR THAT, UM, THAN JUST CARING ABOUT IT.

THEY'RE, THEY'RE REPRESENTING SOMETHING IN THAT PROCESS.

YEAH, I, I AGREE WITH THAT.

AND I GUESS I'M JUST SAYING LIKE LITERALLY THE EUC AND RMC ARE THE BODIES.

THEY, THEY ARE ORGANIZATIONS OF THE CITY APPOINTED BY COUNCIL TO ADVISE ON EXACTLY THIS TOPIC.

SO, UM, I THINK YOU'RE, YEAH, YOU'RE, YOU'RE RECREATING SOMETHING THAT, THAT EXISTS.

AND IT'S NOT TO SAY DON'T BRING IN THE NEW VOICES.

AGAIN, LIKE I DON'T THINK THERE WAS ANY WALL HIT BECAUSE I DON'T THINK WE EVER EVEN EVALUATED, WE NEVER EVEN SAT DOWN AND DISCUSSED WHAT WAS BEING PROPOSED BY THE, THE WORKING GROUP.

BUT REGARDLESS OF WHAT WAS PROPOSED BY THE WORKING GROUP, LIKE THIS BODY SHOULD BE INVOLVED AND SO SHOULD THE RMC, BECAUSE THEY'RE, THEY ARE THE APPOINTED ORGANIZATIONS.

LIKE WE ARE NOT REPRESENTING OURSELVES LIKE WE ARE EACH REPRESENTING A COUNCIL DISTRICT ON BEHALF OF A COUNCIL MEMBER ON THESE TOPICS.

WELL, LET ME LOOK AT IT SOME MORE, BUT I, I DEFINITELY FEEL COMFORTABLE WHERE THE EUC IS INVOLVED AND WHAT, HOW THAT IS GONNA WORK ON THE RMC.

THAT'S PROBABLY MURKIER.

'CAUSE I REALLY DON'T, I'LL BE REAL HONEST, I DON'T TOTALLY UNDERSTAND WHAT THEY DO AND HOW IT WORKS.

I'M NEW TO ALL THIS AS I CONFESSED LAST MONTH.

SO LET ME TALK BACK WITH, UH, WITH THE LEADERSHIP THERE.

UNLESS ANYBODY ELSE HAS ANYTHING TO SAY AT THIS POINT.

CAN I JUST, UH, I DUNNO IF IT'S A REQUEST OR, UM, BUT, UH, I MEAN, PERSONALLY I'M TRYING TO FIGURE OUT HOW I PREPARE MYSELF TO VOTE ON A RESOURCE GENERATION PLAN.

AND I WAS STARTING TO KIND OF GET ORIENTED WHEN WE STARTED TALKING ABOUT THE DRAFT PLAN FROM THE WORK GROUP.

BUT NOW I'M LIKE, WELL, DO I HAVE TO WAIT NOT TILL AUGUST TO START FIGURING OUT SORT OF WHAT THE MAKEUP OF THAT PLAN IS, YOU KNOW, THE DIFFERENT, HOW WE'RE BALANCING ALL THE FACTORS.

AND I DON'T WANNA DO THAT BECAUSE THEN AGAIN, WE'RE GETTING CLOSE TO THE END OF THE YEAR, THE END OF THE PROCESS.

SO, UM, I'M WONDERING IF IT WOULD BE USEFUL FOR, IN TERMS OF THE EUC MEMBERS TO FLESH OUT THEIR QUESTIONS TO STAFF, MAYBE USING THE WORK GROUP PLAN AS A MODEL, BECAUSE THERE WAS A LOT OF INTERESTING THINGS IN THAT PLAN, BUT I ALSO HAD QUESTIONS OF THOSE QUESTIONS WOULD BE THE SAME QUESTIONS I'LL BE ASKING IN AUGUST AND SEPTEMBER ABOUT WHATEVER COMES OUT OF THIS PROCESS.

BUT I THINK THERE WOULD BE SOME VALUE IN THE EEC LOOKING AT THE WORK PLAN AND DISCUSSING IT, THE WORK GROUP RESOURCE GENERATION PLAN RECOMMENDATION AS A WAY OF FLESHING OUT THE ISSUES AND THE QUESTIONS.

'CAUSE THEY'RE VERY COMPLEX AND OVERLAPPING AND I THINK IF WE WAIT TILL AUGUST AND SEPTEMBER, I'M AFRAID I'M NOT GONNA GET ALL MY QUESTIONS ANSWERED AND BE ABLE TO ADVISE MY COUNCIL MEMBER OR THE COUNCIL AS A WHOLE.

ASK FROM WHATEVER COMES OUT OF THIS PROCESS THAT'S OUTLINED HERE.

SO I'M WONDERING IF USING THAT RECOMMENDATION FROM THE, FROM THE WORK GROUP MIGHT AT LEAST HELP TO FLESH OUT SOME QUESTIONS THAT THE EUC MEMBERS HAVE BECAUSE IT'S JUST, FOR ME, IT'S GONNA BE THE SAME KIND OF QUESTIONS THAT I'M GONNA

[00:40:01]

SO, UH, SO I JUST THROW THAT OUT AS AN IDEA IN TERMS OF, YOU KNOW, HOW WE MIGHT USE THE EUC TO FLESH OUT SOME OF THESE ISSUES AND QUESTIONS BECAUSE WAITING THREE OR FOUR MONTHS BEFORE THAT HAPPENS, I THINK IS, IS NOT GONNA BE USEFUL.

AND IF YOU GET 10 QUESTIONS FROM RAUL AND 10 QUESTIONS FROM OTHER, YOU KNOW, EACH OTHER MEMBER, RIGHT? THOSE ARE NEVER GONNA GET ANS ANSWERED IN TIME, RIGHT? FOR A VOTE AND A RECOMMENDATION TO COUNCIL.

THAT'S JUST ME KIND OF LOOKING INTO THE FUTURE AND KNOWING THAT I HAVE A LOT OF QUESTIONS AND THEY'RE GONNA WANNA A LOT OF SUPPORTING INFORMATION.

UM, SO THAT'S JUST AN IDEA IS THAT IF WE SPENT ONE OF THE NEXT COUPLE OF MEETINGS REALLY JUST DIVING INTO THAT RE WORK GROUP PLAN, BECAUSE I THINK IT WOULD HELP FLESH OUT A LOT OF QUESTIONS THAT'LL COME UP ABOUT WHATEVER AGAIN, YOU KNOW, EMERGES FROM THIS PROCESS THAT SIDELINE ON THIS SLIDE.

SO THAT'S JUST ME AGAIN, I'M TRYING TO GET READY FOR A VOTE AND IF I'M NOT READY FOR A VOTE, I'M JUST GONNA ABSTAIN.

SO IF YOU ACTUALLY WANT, UH, MEANINGFUL, UH, INPUT, IT'S GONNA TAKE TIME AND A LOT OF, UM, YOU KNOW, AND I'M NOT GONNA, UNTIL MY QUESTIONS ARE ANSWERED, I'M NOT GONNA WANNA VOTE.

SO I THINK IT'S BETTER FOR Y'ALL TO KNOW MY QUESTIONS NOW AND NOT WAIT TILL SEPTEMBER FOR Y'ALL TO GET MY QUESTIONS.

THAT'S ALL I'M TRYING TO SAY.

COMMISSIONER ALVAREZ, THIS IS LISA MARTIN.

I JUST WANTED TO ADDRESS A COUPLE OF THE POINTS YOU RAISED SO WE DON'T ANTICIPATE, UH, UH, COMING BACK TO THE EUC, YOU KNOW, IN FOUR OR FIVE MONTHS.

AND THAT BEING THE FIRST TIME WE ANTICIPATE TOUCHPOINT EVERY MEETING ALONG THE WAY TO CONSULT WITH YOU, TO ENGAGE WITH YOU, TO WORK WITH YOU, AND TO UPDATE THOSE OF YOU THAT AREN'T AT THE WORKSHOPS TO WHAT YOU KNOW, WHAT HAPPENED AT THE LAST ONE.

SO, UM, YOU KNOW, I I ANTICIPATE THAT THERE WILL BE, UM, PLENTY OF TIME FOR QUESTIONS AND ANSWERS THAT YOU'LL BE FULLY PREPARED.

UM, AND AGAIN, WE ARE LOOKING TO FIGURE OUT HOW WE CAN DO SOME DEEP DIVE INTO, UH, EUC ENGAGEMENT DURING THE JUNE, UH, 10TH EUC AND, UM, WITH A FOCUS ON, UH, COMPONENTS THAT WERE INCLUDED IN THE WORK, UH, EUC WORKING GROUP'S RECOMMENDATION.

YEAH, SO JUST IF WE COULD KNOW WHAT YOU'RE GONNA PRESENT ON SO THAT I CAN GO BACK TO THE PLAN AND SOME OF THE SUPPORTING INFORMATION AND JUST HAVE THOSE QUESTIONS DEVELOPED.

'CAUSE IT'S REALLY HARD FOR ME WHEN I SEE A VERY, VERY LENGTHY AND COMPLEX, YOU KNOW, ISSUE LAID OUT FOR THE COMMISSION TO HAVE MY QUESTIONS, UM, FORMULATED ALREADY.

BUT IF WE KNOW WHAT Y'ALL ARE GONNA PRESENT ON AND THAT'LL HELP ME LOOK FOR OKAY, SECTIONS THREE, FOUR, AND FIVE OF THE RECOMMENDATION FROM THE WORK GROUP, AND THEN I'LL KNOW HOW TO FOCUS MY IN ON MY ATTENTION AND BE PREPARED FOR THAT CONVERSATION.

NOTED.

OTHER QUESTIONS ON NINE? OKAY.

DO WE HAVE A MOTION? MOVE ADOPTION.

UH, ALL IN FAVOR? AYE.

ALVAREZ, YOU HAD A QUESTION ABOUT 10? UH, YES.

AT THAT, UH, COMMISSIONER

[10. Recommend approving issuance of capacity-based incentives to Individuals Directed to Excellence and Achievement (IDEA) Public Schools, for installation of solar electric systems on their facilities shown in the table below, in an amount not to exceed $924,858.]

UH, THIS IS, UM, RELATING TO, UH, AN AGREEMENT TO HELP, I THINK WITH, SO SOLAR SYSTEM INSTALLATION FOR IDEA PUBLIC SCHOOLS.

UH, I WAS WONDERING HOW MANY CAMPUSES, A COUPLE QUESTIONS.

ONE IS HOW MANY CAMPUSES DOES THE SYSTEM COVER, RIGHT? BECAUSE, UM, OR IS IT JUST ONE CAMPUS? AND THEN ALSO, RIGHT, THE COST, THE TOTAL COST OF THE SYSTEM IS ABOUT 2 MILLION AND YEAH, I THINK IT'S 47% OF IT IS COVERED BY THIS ALLOCATION.

SO I'M WONDERING, LIKE, I GUESS, IS THIS A SPECIAL PROGRAM FOR SCHOOLS WHERE AUSTIN INTERVIEW PUTS UP 47% OR IS THIS JUST AN EXISTING PROGRAM WHERE THIS IS HOW WE COST SHARE WITH PRIVATE INSTITUTIONS? RIGHT? UM, I GUESS SO WHAT, WHAT'S DRIVING THAT? 'CAUSE OBVIOUSLY IT'S VERY GENEROUS AND WE WANNA, WE WANT OUR PUBLIC SCHOOLS RIGHT TO, TO RUN ON, ON GREEN ENERGY.

UM, BUT IF A ISD CAME IN AND SAID, HEY, WE WANNA INSTALL A BUNCH OF, YOU KNOW, SOLAR, UH, SOLAR PANELS ON OUR SCHOOLS, UH, WOULD THEY GET THE SAME 47%? I GUESS WHAT, WHAT DRIVES THAT? IS THIS KIND OF WHAT I'M, WHAT I'M AFTER HERE? 'CAUSE UH, IT'S VERY, UH, GENEROUS AND I'M JUST WONDERING IF THAT'S AVAILABLE TO OTHER, OTHER ENTITIES LIKE ENTITIES.

GOOD EVENING COMMISSIONERS, UH, RICHARD GENESEE, VICE PRESIDENT OF CUSTOMER ENERGY SOLUTIONS.

UM, I BELIEVE THE 47% IS AN AGGREGATE OF THE SEVEN PROJECTS THAT YOU SEE LISTED.

UH, JUST LIKE THE TOTAL AMOUNT OF THE $924,000 INCENTIVE IS, IS, UH, ADDING ALL OF THOSE PROJECTS TOGETHER.

THE SEVEN PROJECTS, I DON'T KNOW SPECIFICALLY WHETHER THAT'S OVER ONE CAMPUS OR NOT.

I DOUBT IT'S OVER ONE CAMPUS.

IT'S PROBABLY MULTIPLE.

BUT WE ALSO HAVE TIM HARVEY WHO MANAGES THE SOLAR PROGRAM ON THE LINE WHO CAN ANSWER MORE DETAILED QUESTIONS.

TIM, HELLO, THIS IS TIM HARVEY, UH, CUSTOMER RENEWABLE SOLUTIONS.

UM, YEAH, WHAT RICHARD SAID WAS CORRECT ARE, ARE SEVEN PROJECTS.

AND I WOULD HAVE TO ASSUME THAT THOSE ARE SEVEN CAMPUSES.

UM, THIS IS PART OF THE, UM, NON, OR SORRY, UM, THIS IS, THIS IS PART OF, UM, AN INCENTIVE PROGRAM FOR NONPROFITS THAT'S ELIGIBLE TO ALL NONPROFITS.

SO AS A NONPROFIT, UM, THEY GET 90 CENTS A WATT FOR THE INSTALLED, UM, SYSTEMS. OKAY.

SO THAT'S THE, THAT'S THE POLICY.

SO IF I COULD GET SENT A COPY OF THAT PROGRAM INFO, THAT WOULD BE GREAT.

JUST SO THAT I HAVE IT FOR MY REFERENCE.

[00:55:02]

AND THOSE ARE ALL MY QUESTIONS.

YEAH, WE'LL SEND YOU THAT.

OTHER QUESTIONS ON 10? JUST CURIOUS, YOU SAID THE 90 CENTS WAS FOR THE NON-PROFITS.

IS THERE, WHAT, WHAT'S IT FOR OTHERS? I BELIEVE, UM, CURRENTLY AND THE, AND THE INCENTIVE LEVELS CHANGE OVER TIME, BUT I, I BELIEVE IT'S, UM, 55 CENTS FOR, UH, SMALL BUSINESSES.

AND, AND UP TO 75 KW FOR SMALL BUSINESSES AND UP TO 400 KW PER PROJECT FOR NONPROFITS.

SO THAT'S HOW THE CBIS SEGREGATED.

, DO WE HAVE A MOTION? I MOVE APPROVAL.

A SECOND, SECOND.

ALL IN FAVOR SAY AYE.

AYE.

AND WITH THAT, OKAY, WE CAN MOVE ON

[11. Discussion and action on commissioner orientation and training meeting. (Sponsors: Chapman, Tuttle)]

TO NUMBER 11.

THIS IS A DISCUSSION ON COMMISSIONER ORIENTATION AND TRAINING.

SO COMMISSIONER CHAPMAN.

HI, JUST MA, MAINLY AS A FOLLOW UP, UH, I WANTED, UH, ALL OF WHICH IS, UH, SINCE OUR LAST MEETING, UH, MET WITH, WITH BOTH AMY AND ROBIN, UH, GET THEIR I TO GET THEIR IDEAS.

UH, AND KIND OF MY CURRENT THINKING, AND I THROW THIS OUT FOR DISCUSSION, FOR DISCUSSION, IS, UH, THAT WE WOULD CONDUCT, UH, A TRAINING YOU HAVE, HAVE THE UP UPDATED AND, AND THANKFULLY, UH, AUSTIN ENERGY EXECUTIVE TEAM SAID THEY WOULD, UH, UH, HELP OUT BY TAKING A, A MAJOR ROLE IN GETTING THIS ALL SET UP FOR US, UH, AT A TIME, UH, AT A TIME THAT'S CONVENIENT.

UH, ALL OF WHICH IS I, FIRST OF ALL, I'D ASK, ASK IF THERE, UH, FROM THE DRAFT AGENDA THAT YOU SEE, UH, DOES THIS COVER THE LANDSCAPE? ASSUMING THAT WE EITHER COVER IT IN ONE OR TWO, TWO SPECIAL, I THINK WE'D HAVE TO HAVE A SPECIAL CALL MEETING OR MEETINGS, UH, THE, IN THE FALL AFTER EVERYONE'S BACK FROM VACATION OR WHAT, WHEREVER, UH, ARE THE TOPICS RIGHT AS YOU SEE THEM.

ANY, ANY DISCUSSION OR ANYTHING TO BE ADDED OR TAKEN OFF? I THINK THIS IS GREAT.

PLACES THAN THEY ARE, THAN THEY ARE HERE.

UM, I THINK THERE'S A COUPLE AND, AND I DON'T KNOW HOW DETAILED WE WANT TO GET INTO THE, IN THE, UH, IN THE OUTLINE, BUT I KNOW THERE THERE'S A FEW THINGS PARTICULARLY AROUND KIND OF SPECIFICALLY DIVING INTO LIKE LOAD POCKET SEPARATION AND ALL THESE THINGS.

LIKE I WANT TO, I MEAN, I'LL BE HONEST, I'M AN ENGINEER, ENGINEER, I WANNA SEE THE MATH .

LIKE I WANNA SEE THE NUMBERS, HOW MANY HOURS IS IT HAPPENING, WHAT THE PRICE DIFFERENTIALS ARE, HOW MANY MEGAWATTS, UM, THAT KIND OF THING TO REALLY GET AN INTUITIVE FEEL FOR KIND OF WHAT, WHAT, WHAT THE THING IS, WHAT, WHAT IT IS WE'RE GOING THROUGH.

THAT'S KIND OF LIKE HAVING US HAVE THIS HUGE CONVERSATION ABOUT, UH, NEW GENERATION AND KIND OF WHAT, AND WHAT THAT, WHAT THAT MEANS.

AND THEN HOW, YOU KNOW, LIKE WHAT AUSTIN ENERGY FLEET'S MAKING VERSUS LIKE WHAT WE'RE EITHER GETTING OR HAVING TO PAY IF FOR VIRTUAL PPAS ACROSS THE STATE.

I TO REALLY GET A, A DATA-DRIVEN KIND OF APPROACH.

I REALLY WANNA UNDERSTAND KIND OF WHAT, WHAT ALL OF THAT THAT LOOKS LIKE.

SO I'M HAPPY TO ADD SOME THINGS, UM, TO THIS AND THE WAY THAT AT LEAST I UNDERSTAND 'EM.

BUT I MEAN, THERE'S SOME VERY SPECIFIC THINGS THAT I'D BE VERY INTERESTED IN, IN LEARNING KIND OF WHAT IT MEANS.

HOW ABOUT SENDING THOSE TO EVERY, TO RYAN SUCH, BUT SOUNDS GOOD.

I WOULD PUT UNDER THE CATEGORY OF TEXAS GRID TRANSMISSION SYSTEM AND CONSTRAINTS, A SUB-BULLET THAT TALKS ABOUT LOAD ZONE PRICE SEPARATION TUTORIAL.

ABSOLUTELY.

WITH, WITH REAL ACTUAL HISTORICAL DATA.

WITH HISTORICAL DATA, YES.

THAT WOULD BE HELPFUL.

WHAT ELSE, JOSH? UM, I MAY HAVE MENTIONED IT, BUT, UM, AND I THINK, YEAH, OWNED ASSETS AND, AND, AND PPAS LIKE, LIKE I THINK A LOT OF OUR PPAS ARE VIRTUAL PPAS AND KIND OF, YOU KNOW, THEY'RE SETTLED IN DIFFERENT

[01:00:01]

SO KIND OF WHAT, WHAT THAT MEANS IN TERMS OF HOW OFTEN, YOU KNOW, THEY'RE, IF THEY'RE, IF THEY'RE 35, HOW OFTEN ARE, YOU KNOW, ARE WE HAVING TO MAKE THEM WHOLE IF LIKE THEY'RE GETTING LESS THAN 35 AT THE NODE THAT THEY'RE INJECTING IN.

AND KIND OF HOW ALL THAT MATH WORKS FOR US.

LIKE, I'D REALLY LIKE TO UNDERSTAND ALL OF THAT.

UM, YEAH.

'CAUSE IT'S, IT'S PRETTY COMPLEX, I GUESS LIKE VERY DETAILED WITH HISTORICAL ALSO DATA ABOUT, UM, HOW THE PPAS ARE ARE GOING AND WHAT IT, WHAT IT MEANS FOR FINANCES.

ANY OTHER THOUGHTS ON TOPICS? AND I, ALL OF WHICH IS, UH, FEED ALL, FEED ALL COMMENTS, UH, INTO RO INTO ROBIN, UH, THE EXECUTIVE TEAM HAS, HAS OFFERED TO, LIKE I SAY, TAKE THE LEAD ON THIS.

UH, IT WOULD, YES, CYRUS? UM, THE ONLY THING THAT MIGHT BE MISSING, BUT I'M NOT, I DON'T KNOW IF IT'D BE A GOOD IDEA TO ADD IT OR NOT, BECAUSE IT'S PRETTY COMPLICATED HAVING GONE THROUGH A COUPLE OF THEM WOULD BE JUST THE, THE RATE MAKING PROCESS AND THE FACT THAT, YOU KNOW, THEY HAVE A SCHEDULE FOR DOING A COST OF SERVICE STUDY AND, AND RATE MAKING.

BUT, UM, THAT COULD, UH, YOU KNOW, WE ONLY HAVE SO MUCH TIME.

SO IT'S JUST, IF IT MAKES SENSE TO UNDERSTAND THAT PROCESS ON HOW, HOW THAT PROCESS OCCURS.

'CAUSE THE EUC HAS A ROLE IN THAT, SO THAT MIGHT BE ONE THING THAT'S MISSING.

BUT ON THE OTHER HAND, IT ONLY HAPPENS EVERY SO OFTEN.

SO I DON'T, I DON'T, I DON'T KNOW IF I'M SAYING WE SHOULD HAVE IT OR NOT, BUT IT, IT'S A TOPIC THAT'S WOR THAT'S IMPORTANT.

I THINK IT CERTAINLY CAN BE WORKED IN, UH, ALL OF WHICH IS, IS AS YOU LOOK OVER THE MATERIALS FOR TONIGHT'S MEETING, IT MIGHT BE, UH, VERY TIMELY.

VERY TIMELY.

THAT'S A GOOD POINT.

, UH, LET ME, LET ME ASK, UH, PEOPLE'S THOUGHTS IN TERMS OF, UH, ALL OF WHICH IS WITH THE, WITH THE, UH, GEN PLAN.

WE HAVE A, WE HAVE A LOT, MY THOUGHT IS NOT TO TAG, TRY TO TAG THIS ONTO AN EXISTING MEETING.

PEOPLE STAY UP, UH, LATE NIGHT, UH, BUT RATHER TO DO THIS, YOU KNOW, EITHER ON A WEEKDAY, ON A WEEKNIGHT, WEEKDAY WEEKNIGHT OR, OR SAT OR ON A SATURDAY OR SATURDAYS, WHAT IS PEOPLE'S PREFERENCE? NOT AFTER EUC MEETING? ? YEAH, I WAS ACTUALLY JUST WANTING TO WEIGH IN ON THE TOPICS.

OH, PLEASE, BEFORE WE GO ON FROM THAT, UM, YOU HAVE CLIMATE PROTECTION, I WOULD SUGGEST THAT MAYBE THAT COULD BE A LITTLE BROADER AND, UH, YOU KNOW, BE, UH, ENVIRONMENTAL GOALS OR ENVIRONMENTAL CONSIDERATIONS.

AND I THINK, UH, YOU KNOW, SHARING THE, THE COMMITMENT IN THE AUSTIN CLIMATE EQUITY PLAN WOULD BE HELPFUL TO, YOU KNOW, SET A BROADER CONTEXT THAN, YOU KNOW, WHERE AUSTIN ENERGY FITS INTO THE CITY'S OVERALL CLIMATE COMMITMENT.

UM, 'CAUSE IT IS REALLY IMPORTANT IN, IN MULTIPLE WAYS.

UM, AND THEN THE OTHER TOPIC UNDER THERE, AND MAYBE WE COULD GET SOMEBODY EVEN FROM CAP COG TO PRESENT ON OUR LOCAL AIR QUALITY MM-HMM.

SITUATION HERE IN THE, THE AUSTIN METRO AREA.

YOU, MY, MY, ALL OF WHICH IS MAKING, WE'RE WE'RE ALL MAKING NOTES.

UH, MY, MY OVERALL THOUGHT IS THAT IT WOULD BE NOT, WE WOULDN'T JUST BE TALKED TO, BUT THERE'D BE A DISCUSSION, PREFERABLY IN, IN ONE OF THE LARGER CONFERENCE ROOMS, UH, NEXT DOOR.

A LITTLE MORE INFORMAL THAN, THAN WHERE WE ARE.

UH, SO THERE'D BE PLENTY OF TIME TO ASK, ASK AND ANSWER.

UH, IS THERE, WHAT ARE PEOPLE, SO CAN I QUESTION PREPARE US? GO, GO AHEAD, PLEASE.

IS IS THIS MEANT FOR NEW MEMBERS? 'CAUSE IT SAYS TRAINING AND ORIENTATION, BUT IT, EVERYONE'S WEIGHING IN, LIKE EVERYONE'S GONNA PARTICIPATE.

SO I GUESS THAT'S ONE THING TO CLARIFY.

AND THEN ONE, THE OTHER THING IS THIS SEEMS TO BE AT LEAST A HALF DAY'S WORTH OF INFORMATION, IF NOT MORE.

UM, AND SO

[01:05:02]

IT SEEMS, I DON'T KNOW, TO ME IT SEEMS LIKE THIS IS A SERIES OF FADING IN ORIENTATIONS.

NOT, UH, YOU CAN KEEP US ON A SATURDAY FOR FOUR HOURS OR EIGHT HOURS.

UM, NOT, NOT VERY APPEALING, UH, THINKING ABOUT IT.

BUT THE ONE THING I WOULD LIKE TO LEARN, UM, IS MORE ABOUT THE STRUCTURE OF AUSTIN ENERGY, YOU KNOW, THE DIFFERENT DEPARTMENTS AND DIVISIONS AND WHAT THEY EACH DO.

BECAUSE I THINK THAT BY FOCUSING SO MUCH ON THE RESOURCE PART, LIKE WE DON'T REALLY LIKE GET TO LEARN ABOUT OTHER THINGS.

YOU KNOW? 'CAUSE I, BECAUSE EVEN LIKE GREEN BUILDING, AUSTIN ENERGY'S KINDA LOOKED AT AS A LEADER NATIONALLY AND INTERNATIONALLY ON GREEN BUILDING.

AND I DON'T THINK THAT'S COME UP ONE TIME IN THE YEAR THAT I'VE BEEN ON THE, ON THE EUC, AND IT'S NOT EVEN IN THE ENVIRONMENTAL PART OF THIS.

UM, AND I THINK I'VE BROUGHT UP WEATHERIZATION BEFORE, WHICH IS KIND OF LIKE HOME REPAIR AND ENERGY.

I GUESS IT IS ENERGY EFFICIENCY, BUT IT'S UNDER THAT CLIMATE PROTECTION.

SO THERE'S MORE THAN JUST CLIMATE PROTECTION THAT COMES WITH KIND OF ENERGY EFFICIENCY.

AND, UM, SO FOR ME THAT'S KIND OF LIKE A, AS A ONE OF THE NEWER MEMBERS, YOU KNOW, JUST THE BETTER UNDERSTANDING THE STRUCTURE AND WHERE ALL THE DIFFERENT PROGRAMS AND FUNCTIONS KIND OF LIVE WOULD BE HELPFUL TO ME TOO.

I THINK THAT THAT'S HELPFUL.

THAT ACTUALLY, THAT WAS WHY I PUT AE MANAGEMENT AND ORGANIZATION AT THE TOP OF THE LIST, THE TOP OF THE LIST, UH, ALL OF WHICH IS, UH, UH, KIND OF MOVING FORWARD AGAIN, REALIZING IN TERMS OF BEING ABLE TO GET THE MOST PEOPLE AT THE BEST TIME, UH, DELEGATING TO STAFF.

UH, THERE'S A LOT OF INFORMATION, ESPECIALLY WITH QUESTIONS THAT MAY BE DOING THIS OVER SEPTEMBER, OCTOBER.

UH, BASICALLY TWO, TWO DIFFERENT SESSION.

BREAK THIS INTO TWO PIECES AND YEAH, TWO DIFFERENT SESSIONS.

I THINK HE DOES THAT WORK FOR EVERYONE.

LIKE IF YOU DID LIKE LUNCH AND LEARNS OR SOMETHING LIKE THAT, YOU KNOW, THAT MIGHT MAKE IT A LITTLE, YOU KNOW, MORE DIGESTIBLE, YOU KNOW, .

BUT ANYWAY, I MEAN, I'M JUST TRYING TO LIKE, UH, FIGURE OUT, OR, UH, I'M TRYING TO FIGURE OUT WHAT CAPACITY I HAVE TO ABSORB INFORMATION THAT IS VERY, LIKE, DENSE AND, YOU KNOW, COMPLEX.

AND, UH, BUT I DO, UH, APPRECIATE THE, THE THOUGHT ABOUT KIND OF TRAINING AND ORIENTATION.

AND AGAIN, MAYBE IT'S DEVELOPING A, THIS IS WHAT HAPPENS WHEN THERE'S A NEW MEMBER, RIGHT.

YOU KNOW, THIS KIND OF SUPPORT AND ENGAGEMENT WITH THAT MEMBER.

SO ALL THIS SEEMS VERY INTERESTING TO ME, BUT IT, IT DOES SEEM LIKE A LOT AND, UH, UM, MULTIPLE SESSIONS DEFINITELY, I THINK IS, UH, WOULD BE GOOD.

AND IF IT'S SPREAD OUT OVER A COUPLE MONTHS, THEN I THINK THAT'S, THAT WOULD WORK.

ANY, ANY OTHER THOUGHTS, COMMENTS YOU WERE ASKING FOR? PREFERENCE ON TIMING, I WILL JUST SAY FOR ME, YEAH.

DURING, DURING OR AFTER, DURING THE WORKDAY IS BEST OR, YOU KNOW, AN EVENING PREFERRED OVER A WEEKEND MESSAGE, MESSAGE.

HEARD O OKAY.

UH, YEAH, THERE BE, THERE'LL BE TIME TO ADD MORE TO THIS LIST, SO WE THINK OF MORE STUFF LATER.

YEAH, I'LL CERTAIN LATE, UH, RIGHT AMY? YEAH.

UM, WE WILL WORK WITH YOU TO BUILD THE AGENDA AND, UM, SEE WHAT, GREAT.

SO LET'S, LET'S, LET'S JUST, UH, LET'S JUST KEEP THIS AS A STANDING DISCUSSION ITEM.

THIS, THIS SUMMER AND IT, ALL OF WHICH IS, IF IT'S POSSIBLE, UH, SEND IN ANY, IN THE NEXT COUPLE THREE WEEKS, UH, SEND IF YOU'LL SHOOT ANY RECOMMENDATIONS INCLUDING THOSE DISCUSSED TONIGHT, UH, TO ROBIN AND, AND AMY BE PERFECT.

END COPY RANDY AND I.

YEP.

ANY FURTHER DISCUSSION? OKAY.

LET'S MOVE ON TO NUMBER 12, SECOND QUARTER FINANCIAL REPORT.

I'LL BE RIGHT.

JUST TAKE A BREAK FOR THREE MINUTES AND HOW ABOUT SURE.

YOU TAKE A BREAK, ? OKAY.

CAN

[01:10:01]

WE'RE WAITING FOR YOU, CYRUS.

OH, MAN, I A PHONE CALL.

NOT ALLOWED.

SORRY FOR DELAYING YOU.

SURE.

[12. Staff briefing on the Second Quarter Financial Report by Stephanie Koudelka, Finance Director.]

GOOD EVENING.

HELLO EVERYONE.

I'M STEPHANIE KALKA.

I'M DIRECTOR OF FINANCE FOR AUSTIN ENERGY PRESENTING TO YOU THIS EVENING.

OUR SECOND QUARTER RESULTS FOR FY 24.

UM, THIS ENCOMPASSES THE PERIOD ENDING MARCH OF 2024.

UM, THE RESULTS YOU SEE HERE TONIGHT ARE PRELIMINARY AND UNAUDITED, SO THEY ARE NOT FINAL.

WE HAVE A STANDARD AGENDA FOR YOU THIS EVENING.

I'LL RUN THROUGH A SUMMARY OF OUR FINANCIAL RESULTS.

I'LL ALSO GO THROUGH, UM, THE KPIS THAT WE USE TO BENCHMARK, BENCHMARK OURSELVES AGAINST OTHER AA PUBLIC POWER UTILITIES.

I'LL RUN THROUGH BUDGET BASED RESULTS AS WELL AS GAP BASED FINANCIALS.

AND I'VE ALSO GOT A COUPLE OF SLIDES FOR YOU THIS EVENING AS AN UPDATE TO OUR CASH AND WORKING CAPITAL POSITION.

NEXT SLIDE ON THE EXECUTIVE SUMMARY THROUGH MARCH.

UM, AS YOU CAN SEE, OUR REVENUES ARE 770 MILLION THROUGH THE END OF MARCH.

UM, THAT'S SLIGHTLY UNDER BUDGET BY ABOUT 6%, MOSTLY DUE TO LOWER POWER COSTS THAT WE'VE SEEN.

UM, WE'VE HAD A PRETTY MILD MARKET, AT LEAST THROUGH THE PERIOD ENDED MARCH.

ON THE EXPENSE SIDE, UM, OUR COSTS EXCEED OUR REVENUES.

THEY'RE AT 822 MILLION THROUGH THE END OF MARCH.

THAT'S ABOUT A 7% UNFAVORABLE VARIANCE, WHICH IS PRETTY TYPICAL FOR THIS TIME IN THE FISCAL YEAR.

UM, WE TYPICALLY RUN AT A DEFICIT THROUGH MARCH, JUST GIVEN THE TIMING OF OUR EXPENSES AND TIMING OF OUR REVENUES ON THE FINANCIAL POLICIES.

THIS IS NOT NEW THIS QUARTER.

WE HAVE, UM, TWO POLICIES THAT ARE OUT OF COMPLIANCE.

THOSE POLICIES ARE SET EACH YEAR DURING OUR BUDGET PROCESS.

UM, THE FIRST POLICY THAT'S OUT OF COMPLIANCE IS OUR QUICK RATIO, AND THAT'S A MEASURE OF THE UTILITY'S ABILITY TO PAY OUR LIABILITIES WITH OUR LIQUID ASSETS.

SO WHAT'S DRIVING THAT IS OUR CASH POSITION, WHICH YOU'LL SEE A LITTLE BIT MORE OF LATER IN THE PRESENTATION.

AND, UM, AS WE'VE PRESENTED THE LAST COUPLE OF QUARTERS, OUR RESERVES COMPLIANCE IS OUT OF, UM, OUT OF MINIMUM, WE ARE REQUIRED TO HAVE A MINIMUM OF 150 DAYS CASH ON HAND.

AND AS OF THE END OF MARCH, WE HAVE 117 DAYS.

UM, THAT TRANSLATES INTO ABOUT A $90 MILLION SHORTFALL TO AT LEAST GET TO THE MINIMUM, UM, LEVEL NEEDED PER OUR POLICY.

WE HAVE SEEN SOME IMPROVEMENT IN OUR CASH POSITION.

UM, YOU'LL SEE THAT IN THAT LAST SLIDE.

THAT'S MOSTLY DUE TO THE BASE RATE INCREASES THAT WE'VE IMPLEMENTED, AS WELL AS SOME POWER SUPPLY ADJUSTMENT RECOVERY.

UM, AS YOU CAN SEE HERE, WE ARE STILL UNDER RECOVERED AS OF THE END OF THE PERIOD.

SO WE STILL HAVE 27 MILLION LEFT TO RECOVER FROM OUR CUSTOMERS.

UM, OBVIOUSLY HEADING INTO THE SUMMER, WHICH IS OUR MOST VOLATILE MARKET PERIOD.

YOU SAID, BECAUSE OF THOSE BASE RATES, UM, THE POWER SUPPLY UNDER RECOVERY, UM, BALANCE WAS PRETTY MATERIAL AT THE END OF THE FISCAL YEAR AS WELL.

SO WE USE THESE FOUR METRICS TO, UM, BENCHMARK OURSELVES AGAINST OTHER AA RATED PUBLIC POWER UTILITIES.

THAT IS OUR S AND P BOND RATING OF AA FOR OUR FINANCIAL HEALTH STRATEGIC GOAL, WE'RE CURRENTLY AT AA MINUS AS OF THE END OF THE PERIOD.

UM, FOR DAYS CASH ON HAND, AGAIN, WE'RE AT 117 DAYS WELL BELOW OUR POLICY MINIMUM.

UM, AGAIN, THAT'S ABOUT $90 MILLION THAT WE'D NEED TO REFILL IN OUR RESERVES TO MEET OUR POLICY MINIMUM ON DEBT SERVICE COVERAGE, WE'RE AT 2.4 TIMES AND UM, WE HAVE SEEN SOME IMPROVEMENT THERE.

WE'RE STILL SLIGHTLY UNDER THAT MINIMUM OF 2.5, BUT THOSE BASE RATES HAVE DEFINITELY HELPED US MAKE PROGRESS, UM, IN MEETING THAT RATIO ON OPERATING MARGIN, UM, WE'RE WELL BELOW WHERE WE NEED TO BE.

WE'RE AT 4% COMPARED TO A MINIMUM OF 10% TARGET.

UM, AGAIN, WE'VE SEEN SOME INCREASE DUE TO BASE RATES, UM, BUT WE DO HAVE A LOT OF INFLATION IN OUR COST AS WELL AS SOME UNFUNDED PENSION COSTS THAT IS DRIVING THAT RATIO DOWN AND FINE.

MAY LET, LET ME ASK, ON THE DAYS' CASH ON HAND, UH, IF I UNDERSTAND IT RIGHT, WE HAVE MADE SIGNIFICANT PROGRESS, UH, BECAUSE OF THE RATE CASE.

IT HADN'T WE DROPPED BELOW, BELOW A HUNDRED AT FOR A WHILE.

WE DID.

UM, THE LAST SLIDE WE HEAR I HAVE HERE SHOWS BY THE END OF THE FISCAL YEAR WHERE WE WERE SITTING IN OUR CASH POSITION, I THINK IT WAS AROUND 94 DAYS.

SO WE HAVE SEEN SOME PROGRESS THERE.

AGAIN, LIKE

[01:15:01]

SO THE PROGRESS IN THAT, UM, RECOVERY HAS, HAS HELPED OUR CASH POSITION.

AND, AND, AND AL ALSO BECAUSE THE RATE INCREASE, AT LEAST ON CUSTOMER SERVICE FEE WAS PHASED IN, WAS PHASED IN, THAT ALSO HAD PRESUMABLY HAD A POSITIVE PO CURRENT, UH, POSITIVE EFFECT.

CORRECT.

SO CAN YOU TELL US THE TRAJECTORY WHEN YOU THINK AE WILL GET TO 150, GET THE QUICK CREATION OF 2.5 AND AND THE DEBT SERVICE DOWN TO DEBT CAPITALIZATION, THE 50, OR DO EACH ONE OF THESE HAVE THEIR OWN TARGET DATES THAT YOU'LL THINK THEY'LL RECOVER TO THE LEVELS YOU WANT? THEY DO, AND I'LL BE STEALING RUSTY'S THUNDER IF I TELL YOU THE, THE FORECAST DATE.

SO HE'LL, HE'LL LAY THAT OUT FOR YOU AT HIS FORECAST PRESENTATION.

UM, I DO REMEMBER THE 150 DAYS, UM, WAS ABOUT FY 28 THAT WE THINK WE'RE GONNA MEET THAT TARGET FOUR YEARS FROM NOW.

MM-HMM, .

AND OPERATING MARGINS IT, CAN YOU TELL US, I MEAN THAT THAT'S, YOU KNOW, WHAT YOUR REVENUE IS MINUS THE COST.

BUT CAN YOU TELL US THE MAIN DRIVERS OF IT BEING LOWER THAN THE 10%? THE BIGGEST DRIVER IS, IS REALLY COST.

SO BASE RATES IS DEFINITELY HELPING THAT, UM, RATIO, BUT UM, COSTS ARE DEFINITELY INFLATED, UM, OVER THE PERIOD.

UM, AGAIN, PENSION AND, UM, UNFUNDED PENSION COSTS ARE, ARE WEIGHTING THAT RATIO, UM, DOWN.

SO THAT'S ONE OF THE BIGGEST DRIVERS.

MORE EXPENSES, PROVISIONING TO COVER THE UNFUNDED PENSION.

YEAH, INFLATION IN GENERAL.

UM, BUT UNFUNDED PENSION COSTS ARE DEFINITELY DRAINING THAT AT MARGIN.

SURE.

SO, UH, THIS SLIDE IS A STANDARD SLIDE YOU SEE EVERY QUARTER.

THIS IS OUR FUND SUMMARY THROUGH MARCH.

UM, THIS REPRESENTS, UM, PRETTY CLOSE TO A CASH BASIS OF THE FINANCIAL POSITION OF THE UTILITY.

UM, AS I MENTIONED AT THE BEGINNING OF THE PRESENTATION, UM, WE ARE BUDGETING A DEFICIT OF 40 MILLION THROUGH MARCH, WHICH IS PRETTY TYPICAL, UM, FOR A FISCAL YEAR BUDGET.

UM, WE ARE RUNNING, UM, A LITTLE UNFAVORABLE TO THAT.

MOST OF THAT IS DUE TO OUR, UM, VEGETATION MANAGEMENT PROGRAM.

SO WE'VE SEEN SOME UPTICK IN COSTS THERE, UM, WHICH IS DRIVING THAT UNFAVORABLE VARIANCE.

UM, WE DO SEE OR PROJECT AT THE END OF THE FISCAL YEAR THAT WE'LL HAVE OTHER, UM, COSTS THAT WILL OFFSET THAT, THAT PROGRAM'S, UM, UNFAVORABLE VARIANCE, UM, BY THE END OF THE FISCAL YEAR.

AND THIS SLIDE IS JUST A BREAKDOWN OF THE REVENUE, WHAT I'M CALLING, UH, BUCKETS, BUT CATEGORIES THAT AUSTIN ENERGY KIND OF, UM, CORRELATES OUR REVENUE INTO THESE, AGAIN, ON THE POWER SUPPLY SIDE, REVENUE IS UNDER, UM, BUDGET ON, ON THIS, UM, SLIDE FOR REVENUE.

THAT'S MOSTLY AGAIN, TO, UM, UH, THE COST FOR POWER SUPPLY, SO THAT IMPACTS THE REVENUE AS WELL.

ON THE EXPENSE SIDE, AGAIN, THIS IS A BREAKDOWN, A LITTLE BIT MORE DETAIL BY CATEGORY OF OUR COSTS.

UM, AGAIN, POWER SUPPLY DRIVING A LOT OF THE FAVORABLE VA VARIANCE THAT WE SEE IN EXPENSE.

AND, UH, THE VEGETATION MANAGEMENT PROGRAM IS SHOWING UP IN THAT ELECTRIC SERVICE DELIVERY CATEGORY.

THIS SLIDE IS OUR POWER SUPPLY ADJUSTMENT PASS THROUGH RATE.

UM, WHAT YOU'RE SEEING HERE IS A COMPARISON OF COSTS TO BUDGET, WHICH ARE THE TWO BARS IN THE CHART.

THE GOLDEN GRAY SHOW THAT WE HAVE BEEN TRENDING UNDER BUDGET IN OUR POWER SUPPLY COST, UM, WITH THE EXCEPTION OF EXCEPTION OF JANUARY, WHICH, UM, WAS DUE TO THAT COLD SNAP THAT WE EXPERIENCED.

AND, UH, THE BLUE LINE THAT HOVERS ABOVE THE COST IS SHOWING YOU THAT AS INTENDED, OUR POWER SUPPLY RATE IS OVER RECOVERING COSTS.

AGAIN, WE ARE AT 27 MILLION STILL YET TO RECOVER IN THAT RATE.

QUICK QUESTION ON THAT.

YOU DON'T HAVE TO GO BACK.

UH, HOW DOES THAT 27 MILLION COMMISSIONER WHITE, CAN YOU TURN YOUR MIC? THANK YOU.

MY APOLOGIES.

HOW DOES THE 27 MILLION, UH, LEFT TO RECOVER COMPARED TO WHAT YOU WERE, UM, I GUESS ANTICIPATING AT OR PROJECTING AT THIS TIME WHEN COUNSEL DID THE THREE YEAR KIND OF PHASE IN INCREASE? SO, UM, WE WERE ABOUT, UM, UH, LET'S SAY A HUNDRED TO $115 MILLION UNDERCOVERED, AND WE HAD A THREE YEAR PATH TO RECOVER THOSE

[01:20:01]

COSTS FROM THE CUSTOMER.

UM, THE 27 MILLION IS WHAT WE FEEL IS ON TARGET.

UM, AS WE MOVE INTO THE SUMMER PERIOD, WHICH IS TYPICALLY $80 MILLION UNDER COLLECTED.

UM, THAT'S THE TREND WE'VE SEEN FOR THE PAST FEW YEARS.

SO, UM, WE'LL BE RIGHT ON TARGET, UH, DEPENDING ON THE SUMMER.

'CAUSE YOU'RE NOW LIKE A YEAR AND A HALF INTO THAT.

THIS IS YEAR TWO.

OKAY, THANK YOU.

UM, I WILL SAY THE, THE FIRST YEAR WAS SET TO RECOVER A THIRD OF 100 MILLION, AND WE ENDED UP AT 115 MILLION UNDER RECOVERED AT THE BEGINNING OF YEAR TWO.

SO, UM, THE RATE DID NOT PERFORM AS INTENDED WITH THE EXPENSIVE POWER MARKET WE EXPERIENCED.

UM, EXCUSE ME, IGNORANCE ON THE, THE POWER SUPPLY.

IS THAT, IS THAT, YOU SAID IT WAS BECAUSE WE HAD A A A MILD MARKET.

IS THAT, IS THAT, IS THAT JUST 'CAUSE OUR POWER PLANTS WERE CLOSER TO THE MARGINAL GENERATION IN ? OR HOW IS THAT, WHAT DOES THAT ACTUALLY MEAN? JUST A POWER PRICES IN GENERAL.

WE HAVEN'T SEEN, UM, ANY WILD SWINGS AND CONGESTION AND OTHER COSTS THAT WE SAW LAST YEAR THAT WERE DRIVING OUR BUDGET VARIANCE TO BE OVER.

UM, SO JUST MILD IN GENERAL, WHICH IS PRETTY TYPICAL THROUGH MARCH.

AGAIN, UM, AS WE MOVE INTO THE SUMMER, YOU KNOW, THAT COULD CHANGE VERY QUICKLY.

THAT'S JUST THE DIFFERENCE OF HOW MUCH OUR POWER PLANTS MAKE VERSUS HOW MUCH WE'RE BUYING ON THE MARKET.

IS THAT RIGHT? SO IN THE, THE GRAPH, IF YOU GO BACK JUST ONE ROBIN, UM, OR, OR I GUESS WE DON'T, HA SORRY.

UM, THE, THE COSTS ARE SHOWN IN GOLD AND GRAY, SO THAT IS ALL IN COST FOR POWER SUPPLY.

SO THAT'S NET MARKET, THAT'S COMMODITY, THAT'S PPA PRICES, ET CETERA.

SO, UM, THE BUDGET ISN'T GRAY AND IT DOES HAVE A LOT OF VOLATILITY BUILT IN.

IT'S, UM, BUILT IN SIMILAR TO WHAT WE SAW LAST YEAR, WHICH WAS A PRETTY EXPENSIVE YEAR.

UM, SO THAT'S WHAT'S DRIVING US TO BE UNDER, BUT YOU ARE CORRECT, THAT'S ALL IN POWER COSTS.

I'LL MOVE ON TO OUR CAPITAL IMPROVEMENT PLAN.

AS YOU CAN SEE HERE, WE'RE 63 PER PERCENT SPENT OF OUR SPEND PLAN.

UM, WE'RE 50% THROUGH THE YEAR AS YOU, AS YOU KNOW.

UM, DISTRIBUTION IS DRIVING, UM, SOME OF THAT, UM, ACCELERATION AND SPEND, UM, THAT'S MOSTLY DUE TO, UM, PROCUREMENT OF SOME TRANSFORMERS FOR INVENTORY AS WELL AS INCREASED MATERIAL AND LABOR COST.

UM, THE PART, THE PIE CHART ON THE RIGHT SHOWS HOW WE PAY FOR THOSE ASSETS.

AS YOU CAN SEE HERE, WE'VE GOT CASH, WHICH WE FUND FROM OUR OPERATIONS, CONTRIBUTIONS FROM OUR CUSTOMERS, AND 50 56% OF THOSE COSTS WERE FINANCED WITH DEBT OR COMMERCIAL PAPER.

CAN I HAVE A QUICK, QUICK QUESTION ON THAT ONE? UM, ON THAT SLIDE? SO THIS IS THE SPENDING PLAN FOR THE WHOLE FISCAL YEAR? THAT'S CORRECT.

UM, SO IF WE'RE NOT ABOUT HALFWAY OR A LITTLE MORE THAN HALFWAY, THEN WE WOULD KIND OF BE HUNT SPENDING.

UM, JUST CURIOUS ABOUT, UH, THE JOINT PROJECTS, LIKE WHAT WOULD BE ENCOMPASSED, UH, IN THE JOINT PROJECTS? UM, I'D HAVE TO TO LOOK AT THE SPECIFIC CAPITAL PROJECTS, BUT THEY'RE VERY, UM, IMMATERIAL IMPROVEMENTS TO, UM, THOSE PLANTS.

AND WHEN WE SAY JOINT PROJECTS, THAT MEANS WHERE WE, A FAYETTE POWER PROJECT AND A SOUTH TEXAS PROJECT.

THAT'S WHAT I WAS THINKING.

OKAY, THANKS.

WE'RE SITTING AT 479 MILLION.

I'LL MOVE ON TO OUR INCOME STATEMENT.

I THINK THE BIG TAKEAWAY HERE IS JUST THAT WE HAVE IMPROVED.

UM, WE'RE STILL AT A LOST POSITION AS OF THE END OF THE QUARTER, UM, BUT WE ARE, UM, IMPROVED SINCE LAST YEAR.

UM, JUST WANT TO NOTE THAT LAST YEAR DID HAVE THOSE WINTER STORM MAR COST IN OUR LOSS POSITION.

SO, UM, EVEN THOUGH WE ARE DOING BETTER, UM, DUE TO THOSE BASE RATE INCREASES, UM, WE STILL HAVE SOME PROGRESS TO MAKE GIVEN, UM, INFLATION AND OTHER COST DRIVERS THAT ARE KEEPING US AT A LOST POSITION ON, ON A GAP BASIS FOR OUR NUMBER OF CUSTOMERS IN SALES.

THOSE ARE CHANGED 2% AND 1% RESPECTIVELY.

THAT IS IN LINE WITH PROJECTIONS.

NEXT SLIDE ON THE BALANCE SHEET.

UM, I'LL UH, JUST POINT OUT KIND OF WHAT WE'VE BEEN TALKING ABOUT THE LAST COUPLE OF QUARTERS, WHICH IS OPERATING RESERVES BEING DOWN OVER THE FISCAL YEAR, WHICH IS NOT TYPICAL.

WE DID HAVE TO PULL 70 MILLION FROM OUR RESERVE TO FUND A VERY EXPENSIVE POWER MARKET LAST FISCAL YEAR.

SO WHILE YOU DO SEE IN THE BUCKETS HERE IN CASH AND RESERVES THAT, UM, WORKING CAPITAL IS ABOVE THE TARGET, UM, IN TOTAL WE ARE STILL WELL BELOW.

UM, THE TARGET FOR THE FISCAL YEAR IS 569 MILLION, AND AT MARCH

[01:25:01]

SO THAT LEADS INTO THE LAST COUPLE OF SLIDES.

I'LL RUN THROUGH FIRST OUR DAYS CASH.

VERY QUICK QUESTION.

SURE.

UM, ON THAT LAST SLIDE, MM-HMM, , UM, THE DECOMMISSIONING RESERVE, YOU'VE GOT A, A NUCLEAR DECOMMISSIONING RESERVE.

DO WE HAVE A DECOMMISSIONING RESERVE FOR THE OTHER POWER PLANTS? WE DO.

WE HAVE NON-NUCLEAR DECOMMISSIONING, AND I BELIEVE THAT'S IN OTHER LONG TERM ASSETS.

OH, IT'S JUST IN A DIFFERENT CATEGORY? CORRECT.

OKAY, THANKS.

ACTUALLY, ON, ON THAT SAME TOPIC.

MM-HMM, , UM, HAS THE COST OF DECOMMISSIONING FAYETTE BEEN ASSESSED SINCE, I MEAN, I THINK IT WAS THERE, THERE WAS SOME NON-NUCLEAR DECOMMISSIONING STUDY, I THINK LIKE EIGHT YEARS AGO OR SOMETHING A WHILE BACK ANYWAY, MIGHT HAVE THE DATE WRONG, BUT HAS ANYTHING MORE RECENT AND MORE DETAILED BEEN DONE ON THE DECOMMISSIONING COST FOR MAY NOT, NOT THAT I'M AWARE OF.

IS THERE A PLAN FOR THAT? YES, THERE IS.

I THINK WE COMMITTED IN THE LAST RATE HAS SAID WE WOULD, WE WOULD UPDATE THOSE, UH, COSTS.

ARE THOSE DE SO IS THERE AN RFP GOING OUT FOR THAT OR IS THAT BEING DONE IN HOUSE? WE HAVE NOT ISSUED AN RFP YET, BUT THAT WILL BE THE STRATEGY, YES.

WELL, WE BRING OUR NEXT COST OF SERVICE.

WE'LL BRING THOSE, WE'LL BRING THESE UP TODAY.

HMM.

SEEMS LIKE SINCE THE PLANT WAS ALREADY SUPPOSED TO BE SHUT DOWN THOUGH, WE SHOULD HAVE THAT INFORMATION SOONER THAN LATER.

SO I'LL MOVE INTO THE LAST COUPLE OF SLIDES HERE ON OUR DAYS.

CASH ON HAND, UM, DAYS, CASH ON HAND, UH, REPRESENTS THE NUMBER OF DAYS THAT AN ORGANIZATION OR AUSTIN ENERGY CAN CONTINUE TO FUND ITS OPERATING COST, UM, WITH CASH AND RESERVES AVAILABLE.

UM, SHOWING YOU A TREND OF OUR CASH BALANCES STARTING IN 2020.

UM, AS YOU CAN SEE, WE'RE JUST SLIGHTLY ABOVE AN INDUSTRY STANDARD OF 200 DAYS CASH ON HAND.

I WOULD CONSIDER, UM, OUR CASH AND RESERVES IN FY 20 TO BE A HEALTHY NUMBER OF DAYS.

UM, AND THEN THE TREND, UM, IS GOING DOWN SINCE THEN.

UM, 21 STILL LOOKS, UM, TO BE PRETTY HEALTHY, BUT AS A REMINDER, THE, UH, DAYS CASH ON HAND IS HOLDING THAT WHOLESALE, UM, REVENUE THAT WE RECEIVED FOR WINTER STORM MURIE, UM, WHICH WAS QUICK, QUICKLY RETURNED BACK TO OUR CUSTOMERS, BUT, UM, IS IMPACTING, UM, DAYS CASH ON HAND.

UM, THAT'S, YOU KNOW, OBVIOUSLY WHEN WE WERE IN NEED OF THAT BASE RATE INCREASE.

SO, UM, ALL OF THOSE FACTORS DROVE OUR CASH AND RESERVES BELOW OUR MINIMUM.

UM, AND FY 22 AND 23, WE ENDED THE YEAR UNDERNEATH, UM, THE 150 DAY MINIMUM PER POLICY.

AND AT MARCH, AGAIN, WE'VE SEEN SOME IMPROVEMENT OR PROGRESS, UM, THAT'S DUE TO THOSE BASE RATE INCREASES AS WELL AS THE POWER SUPPLY RECOVERY.

UM, SO SOME, SOME INCREASE IN PROGRESS.

UM, MARCH AGAIN IS AT 117 DAYS AND WE'D NEED ABOUT 90 MILLION TO REPLENISH THESE BALANCES.

WHICH MOVES AUSTIN ENERGY CLOSER TO FINANCIAL POLICY MINIMUMS AS WELL AS OVERALL FINANCIAL HEALTH.

AND I JUST WANNA REMIND YOU, UM, OF THE LAST THREE, UM, THREE RATING AGENCIES THAT WE WORK WITH, THE COMMUNICATION THAT THEY HAVE, UM, CITED FOR AUSTIN ENERGY, UM, POST MEETING WITH THE UTILITY, UH, STANDARD AND PORES, WHICH IS OUR FINANCIAL HEALTH STRATEGIC GOAL.

UM, LAST APRIL AS PART OF OUR BOND ISSUANCE, THEY DID AFFIRM OUR AA MINUS RATING, WHICH IS, UM, JUST ON THE HEELS OF A DOWNGRADE THAT THEY GAVE THE UTILITY IN AUGUST OF 2022, UM, STANDARD AND PORES MENTIONED THAT AUSTIN ENERGY DOES REQUIRE STRONGER LIQUIDITY AND THEY DO EXPECT TO SEE OUR METRICS STRENGTHEN IN THE SHORT TERM FITCH.

THERE'S A VERY SIMILAR STORY HERE.

WE MET WITH THEM AROUND THE SAME TIME.

THEY AFFIRMED OUR AA MINUS RATING.

UM, THEY CITE A DECLINE IN OUR LIQUIDITY AS WELL AS THEN OPERATING MARGINS.

AND FINALLY, UM, WE MET WITH MOODY'S LAST, UM, THEY REQUESTED A MEETING WITH THE UTILITY REGARDING SPECIFICALLY OUR CASH AND RESERVE LEVELS, UM, AGAIN REFERENCING OUR DECLINING METRICS, UM, IN THE AREA OF CASH AND COVERAGE.

UM, RUSTY AGAIN, WILL PRESENT TO YOU OUR FORECAST, UM, TONIGHT THAT SUPPORTS FUNDING RESERVES,

[01:30:01]

GOOD EVENING COMMISSIONERS.

THAT'S THE END OF MY PRESENTATION.

ANY OTHER QUESTIONS? THANK YOU.

[13. Staff briefing on the Austin Energy FY25 Forecast by Rusty Maenius, Senior Vice President & Chief Financial Officer.]

RUSTY MANUS.

I AM, UH, SENIOR VICE PRESIDENT, CHIEF FINANCIAL OFFICER FOR AUSTIN ENERGY.

TONIGHT I WILL BE PRESENTING THE FIVE YEAR FORECAST THAT COVERS THE FIVE YEAR PERIOD FROM FISCAL YEAR 2025 TO FISCAL YEAR 2029.

UH, THIS FORECAST WAS INCLUDED IN THE CITY'S, UH, FORECAST PRESENTATION IN APRIL.

JUST A QUICK DISCLAIMER THAT THIS, UH, PRESENTATION CONTAINS UNAUDITED AND FORECASTED INFORMATION.

IT'S SUBJECT TO CHANGE.

ACTUAL RESULTS MAY VARY FROM THE FORECAST.

THIS IS THE AGENDA THAT WE WILL FOLLOW.

WE HAVE PRESENTED THE FORECAST, UM, ON A REGULAR BASIS TO THE EUC.

THIS PRESENTATION'S GOING TO BE A LITTLE DIFFERENT.

I'M GONNA SPEND SOME TIME IN THE, UH, UPFRONT GIVING YOU SOME BACKGROUND AND PERSPECTIVE OF THE ISSUES THAT AE FACES AND HOW WE'RE TRYING TO SOLVE THEM.

THIS IS A FAIRLY LONG PRESENTATION, SO I'M GONNA MOVE THROUGH THESE SLIDES QUICKLY.

PLEASE DO NOT HESITATE TO STOP ME IF YOU HAVE A QUESTION.

SO THE FORECAST IS AN OPPORTUNITY TO LOOK BEYOND TODAY, SEE WHAT OUR NEEDS ARE, WHAT'S WORKING, WHAT'S NOT, AND WHAT THE GAME PLAN IS MOVING FORWARD.

AND WE'LL DO THAT BY ASKING THESE THREE QUESTIONS.

WHAT'S THE CURRENT SITUATION? HOW DO WE GET HERE? WHAT ARE WE GONNA DO ABOUT IT? QUESTION ONE, WHAT IS THE CURRENT SITUATION? BUT WE HAVE A COUPLE OF ITEMS. WE HAVE A STRUCTURAL IMBALANCE.

NOW WHAT THAT MEANS IS, IS THAT OUR CURRENT BASE RATES DON'T GENERATE ENOUGH REVENUE TO COVER TOMORROW'S COSTS INTO THE FORECAST.

AND SO, UH, WE WILL BE PROPOSING, UH, A SUBSEQUENT RATE INCREASES OVER THE FIVE YEAR PERIOD AT THE LA AT THE END OF OUR LAST FISCAL YEAR, END FISCAL YEAR 2023, MOST OF OUR KEY PERFORMANCE INDICATORS DID NOT MEET TARGETS.

WE ARE SHORT ON CASH, AS STEPHANIE JUST ALLUDED TO.

THE GOOD NEWS IS THAT THE RECENT RECENT RATE INCREASES ARE STARTING TO DRIVE FINANCIAL REBOUNDS.

THIS SLIDE SHOWS THE STRUCTURAL IMBALANCE.

THE BARS ARE COST THE LINE'S REVENUE.

YOU WOULD EXPECT THE REVENUE TO BE ABOVE THE BARS, BUT THEY ARE NOT.

BASE REVENUES ARE A PRIMARY SOURCE TO PAY THE MOST BASIC COSTS.

THINGS LIKE PAYROLL, DEBT SERVICE, MOST OF OUR CONTRACTUAL COSTS LIKE TREE TRIMMING CALL CENTER.

IT ALSO FUNDS OUR CASH AND RESERVES, WHICH WE'LL TALK ABOUT LATER WITHOUT FURTHER BASE RATE INCREASES.

OUR REVENUES DON'T KEEP UP.

QUITE FRANKLY, INFLATION IS OUTPACING, UH, OUR, OUR NATURAL GROWTH IN REVENUES.

LET ME, LET ME ASK A QUESTION THERE IN TERMS OF THE FORECAST IS, DOES THAT ASSUME THAT AUSTIN ENERGY KEEPS THE SAME FTE SAME NUMBER OF EMPLOYEES? UH, DOES IT? THAT'S MY FIRST QUESTION.

SO THE WAY THE FORECAST WORKS IS THERE'S JUST BASIC COSTS BUILT INTO THE, TO THE ACTUALS, AND THEY'RE, AND THEY'RE TRENDED UP.

AND SO WHATEVER WAS BUILT INTO THE, UH, INTO THE BUDGETS AND INTO THE HISTORICALS, UH, ARE TRENDED UP BY, I THINK, UH, PAYROLL IS TRENDS UP BY 4%.

AND DOES IT, DOES THAT INCLUDE ANY PROJECTION IN TERMS OF CHANGE OF GENERATION, CHANGE OF GENERATION DURING THAT FIVE YEARS? THERE IS A CIP PLAN, AND WE'LL GET TO THAT A LITTLE LATER, BUT, BUT FOR, FOR THIS INSTANCE, WE, UH, HAVE NOT YET DEVELOPED, OR BY THE TIME THIS FORECAST WAS PREPARED, WE HAD NOT DEVELOPED THIS YEAR'S FIVE YEAR CIP PLAN.

WE USED LAST YEAR'S AND ADDED 10% IN THE OUTER YEARS TO, FOR INFLATION, 10%.

AND, UH, AND, AND THIR THIRD IS, UH, IN TERMS OF WHAT, WHAT EFFORTS ARE IN HERE IN TERMS OF CONTROLLING THE, CONTROLLING THOSE COSTS.

FOR EXAMPLE, UH, COUNCIL, UH, THE MAYOR AND COUNCIL HAVE, UH, HAVE ASKED AUSTIN ENERGY FOR A PLAN FOR HARDENING,

[01:35:01]

UH, THE SYSTEM, INCLUDING UNDER SOME PLACES UNDERGROUND.

UH, HAS, HAVE THOSE COSTS BEEN INCLUDED IN THE FORECAST? YES.

YES, THEY HAVE.

AND WHAT, DO YOU HAVE AN ESTIMATE WHAT THAT, WHAT THAT NUMBER IS? NO, ONCE AGAIN, THESE FORECASTS ARE, ARE TRENDED.

SO IF YOU'RE SAYING, UH, WHAT IS EX UH, HOW MUCH IS IN, UH, A, A PARTICULAR YEAR FOR A PARTICULAR THING, THESE FORECASTS DON'T GO TO THAT DETAIL.

THOSE KIND OF QUESTIONS WILL BE ANSWERED IN THE BUDGET PROCESS WHEN WE DRILL DOWN AND BE A LITTLE MORE SPECIFIC FOR WHAT'S GONNA HAPPEN IN 2025.

AND THAT'LL COME IN A COUPLE OF MONTHS.

WHERE YOU BREAK GLASS ONLY IN CASE OF AN EMERGENCY.

SO THESE ARE KEY PERFORMANCE INDICATORS.

IF YOU LOOK, UH, TO THE FIRST COLUMN TO THE LEFT IS THE KPIS.

NEXT COLUMN ARE THE MEASURES.

UH, THE THIRD COLUMN IS THE TARGET.

I WOULD DRAW YOUR ATTENTION TO THE SECOND COLUMN.

FROM THE RIGHT, YOU'LL SEE THAT MOST OF THOSE NUMBERS ARE RED, AND THAT'S NOT GOOD.

THAT MEANS THAT WE HAVE NOT MET MOST OF OUR KPIS.

IF YOU LOOK TO THE LAST COLUMN, YOU'LL SEE THAT A LOT OF THAT RED DISAPPEARS IF WE MAINTAIN BUDGET, DISCIPLINE, UH, OUR KPIS, UH, START TO MEET TARGETS BY 2024.

BUT I WANNA POINT OUT THAT THE DAYS OF CASH ON HAND ARE STILL BELOW THE 150 DAY MINIMUM, AND CERTAINLY MUCH MORE THAN OUR INDUSTRY STANDARD OF 200 DAYS.

THIS IS A DISADVANTAGE TO AUSTIN ENERGY, UH, FROM A RISK PERSPECTIVE AND PROBABLY ONE OF THE MOST PRESSING THINGS THAT WE NEED TO ADDRESS.

SO I'M GONNA USE THE NEXT COUPLE OF SLIDES TO DELVE INTO OUR CASH AND RESERVES.

SO YOU'VE SEEN THIS, THIS, UM, THIS SLIDE, STEPHANIE INCLUDED IT IN HERS GOES BACK A LITTLE FARTHER BACK INTO 2019.

BUT WE HAVE A FINANCIAL POLICY THAT SAYS WE'LL HAVE A MINIMUM OF 150 DAYS OF CASH ON HAND.

AND WE'VE BEEN IN VIOLATION OF THAT SINCE 2022.

UH, STEPHANIE ALSO MENTIONED THAT IT, IT HAS CAUGHT THE ATTENTION OF THE RATING AGENCIES.

SO CASH AND RESERVES ARE VITAL.

UH, AND WE'LL TALK A LITTLE MORE ABOUT THAT.

SO OUR CASH AND RESERVES COME IN TWO BUCKETS.

AN ORANGE BUCKET AND A YELLOW BUCKET, IF YOU WILL.

WE HAVE WORKING CAPITAL, AND THEN WE HAVE RESERVES IN THE YELLOW BUCKETS.

AND THAT'S JUST THE THREE RESERVES.

WE HAVE ALL OF THOSE COMBINE TO CALCULATE OUR DAYS OF CASH ON HAND.

ONCE AGAIN, THE MINIMUM IS 150 DAYS.

OUR PEER GROUP MEDIAN IS CLOSER TO 200 AND 210 DAYS.

EXCUSE ME AGAIN.

UH, THE INDU WHAT'S REFERRED TO AS INDUSTRY STANDARD TO, I'D CURIOUS AS TO, DOES THAT INCLUDE INVESTOR OWNED UTILITIES OR IS THAT IT IS, IT IS JUST FOR MUNICIPAL.

IT'S UTILITIES WITH A, WITH IT'S, IT'S A, WE, WE PULL THAT INFORMATION FROM A FITCH PEER REVIEW FOR UTILITIES THAT HAVE A DOUBLE A MINUS RATE, UH, RATING.

SO, SO ALL OF WHICH IS, UH, LOOKING AT OTHER UTILITIES LIKE C LIKE SAN ANTONIO OR DETROIT? YES.

UH, WHERE, WHERE WOULD WE BE IN COMPARISON TO OTHER MUNICIPAL UTILITIES WITH 150 DAY STANDARD? OH, BELOW THE MEDIAN IS, IS 210 DAYS.

WHY IS CASH IMPORTANT? IT PROVIDES TWO THINGS, FLEXIBILITY AND ABILITY TO MITIGATE RISK.

AND I DRAW YOUR ATTENTION TO THAT CENTER CIRCLE.

AUSTIN ENERGY HAS AN OBLIGATION TO SERVE.

WE CANNOT SIT OUT DURING ADVERSE MARKET CONDITIONS, NOR CAN WE SIT AND WAIT FOR MORE FAVORABLE, UH, ECONOMIC ENVIRONMENTS.

WE HAVE TO BE IN THE GAME ALL THE TIME.

AND IF WE'RE GOING TO, IF WE'RE GONNA MEET THOSE OBLIGATIONS, WE HAVE TO HAVE THE TOOLS TO DO THAT.

AND PART OF THE TOOLS IS, IS CASH AND RESERVES.

UM, THAT'S WHY WE HAVE THE FINANCIAL POLICY OF, OF THIS CASH MINIMUM OF 150 DAYS.

AND WE'RE NOT THERE.

WELL, THAT WENT TOO FAR.

SO, CHARACTERISTICS, WE HAVE WORKING CAPITAL.

THINK ABOUT THAT, UH, AS OUR CHECKBOOK, RIGHT? IT PAYS THE DAILY BILLS.

WE TALK ABOUT, UM, UH, BASE REVENUES COMING IN.

UH, THE, THE CHECKBOOK BRIDGES THAT SEASONALITY AND THAT VOLATILITY.

I BELIEVE STEPHANIE, UH, SHOWED YOU AT THE VERY BEGINNING OF THE, UH, OF HER PRESENTATION WHERE WE HAD 770 MILLION IN REVENUE AND 800 AND SOMETHING IN EXPENSES.

AND SHE SAYS THAT'S COMMON FOR THE TIME BEING.

HOW DO YOU BRIDGE THAT GAP? YOU BRIDGE IT WITH CASH AND RESERVES.

RESERVES.

ON THE OTHER HAND, THOSE ARE RAINY DAY FUNDS, RIGHT? THEY ACT AS AN INSURANCE POLICY.

RESERVES ARE FOR, ARE FOR INSTANCES

[01:40:01]

BAD THINGS HAPPEN.

AND THEY DO.

SO ANYBODY REMEMBER WINTER STORM URI? NO.

AND THE HAC IT CREATED IN THE POWER MARKET.

NOW, AE FARED FAIRLY WELL, BUT WE JUST AS EASILY COULDN'T HAVE.

AND THERE WERE MANY UTILITIES THAT DIDN'T.

YOU LOOK TO THE BOTTOM RIGHT.

YOU SEE BRAS, ELECTRIC BRAS HAD A $1.8 BILLION PAYMENT DUE, BUT BECAUSE THEY COULDN'T MAKE PAY THEIR BILLS, PAYMENTS TO THE GENERATORS WERE REDUCED TO MAKE UP THE DIFFERENCE.

SO EVEN THOUGH AE FARED WELL IN YING, THEY STILL CAME UP SHORT, NEARLY $50 MILLION BECAUSE ERCOT DIDN'T GET PAID BY BRAS.

SO, SO ERCOT COULDN'T PAY THE GENERATORS AND WE WERE SHORTED ABOUT $50 MILLION.

HOW DO YOU BRIDGE THAT GAP? CASH AND RESERVES, THIS ONE IS A LITTLE FARTHER.

BACK, BACK IN 2008, WE HAD A CREDIT FREEZE.

MOST OF OUR CAPITAL PROJECTS, THEY'RE FINANCED EITHER WITH CASH CONTRIBUTIONS MADE TO CONSTRUCTION OR COMMERCIAL PAPER.

THE BANKS THAT, THAT WE HAVE COMMERCIAL PAPER LINES COULDN'T ISSUE COMMERCIAL PAPER 'CAUSE THERE WAS NO LIQUIDITY IN THE MARKET.

BUT AUSTIN ENERGY HAS AN OBLIGATION TO SERVE.

WE HAD TO CALL ON CASH AND RESERVES TO FUND DURING THAT CRISIS PERIOD.

ONCE AGAIN, HOW DO YOU BRIDGE THE GAP? CASH AND RESERVES.

THIS ONE IS A LITTLE LESS OBVIOUS, BUT THIS ONE RESULTED IN WHAT STEPHANIE ALLUDED TO, BREAKING GLASS.

SO, UM, SINCE AE BUYS ITS POWER FROM THE ERCOT MARKET, AE IS REQUIRED TO POST COLLATERAL COLLATERAL TO MITIGATE ERCOT RISK IN THE EVENT THAT AE DOESN'T PAY.

SO IF YOU LOOK AT THE, UH, THE GRAPH ON THE, ON THE LEFT, THOSE ARE POWER SUPPLY COSTS FOR 2023.

IN AUGUST, WE HAD $120 MILLION POWER SUPPLY BILL.

THE GRAPH ON THE RIGHT SHOWS THE COLLATERAL CALLS THAT ERCOT MADE US PAY.

NOW THAT PEAK IS GREATER THAN THE $120 MILLION IN THAT WE HAD TO PAY IN IN AUGUST.

SO THERE WAS A TIME IN AUGUST WHERE WE HAD A QUARTER OF A BILLION DOLLARS WALK OUT THE DOOR.

THAT'S OVER HALF OF OUR CURRENT CASH BALANCE.

IT DECIMATED OUR, OUR WORKING CAPITAL.

WE HAD TO BREAK THE GLASS AND USE FUNDS FROM THE POWER SUPPLY RESERVE.

YES, SIR.

RUSTY, COULD YOU JUST TELL US THE, WHAT THE, ARE THOSE LINES ON THE GRID? UH, LET'S SEE WHERE THAT, THEY'RE INTENTIONALLY LEFT.

BLANK.

OH, THEY'RE LEFT BLANK.

OF OVER OF, OF URI STORM, UH, GENERATION PROFITS THAT WE ARE, ARE EXTRA MARGINS THAT WE RETURN TO THE CUSTOMER.

BUT WHAT YOU'RE TELLING US IS THAT WAS SOMEWHERE AROUND, WAS GREATER THAN 120 MILLION.

GOT IT.

HERE'S A QUICK PICTURE OF WHERE WE ARE IN OUR CASH.

STEPHANIE ALREADY, ALREADY, UH, SPOKE TO YOU GUYS ABOUT IT.

THE TAKEAWAY HERE IS WE HAVE ROUGHLY $479 MILLION 117 DAYS.

WE'RE LOOKING FOR 150 DAYS MINIMUM.

ONCE AGAIN, A MINIMUM NOT THE INDUSTRY STANDARD.

WE'RE $90 MILLION SHORT.

SO HOW DO WE GET HERE? WELL, I'VE GOT A STORY TO TELL YOU, AND IT INVOLVES COVID REGULATORY LAG AND INFLATION.

THIS STORY STARTS IN 2019.

AUSTIN ENERGY IS FINANCIALLY SOUND.

THEY HAVE OVER 200 DAYS OF CASH ON HAND ABOUT INDUSTRY.

STANDARD FOUR TIME, FOUR X DEBT SERVICE COVERAGE, POSITIVE OPERATING AND NET MARGINS.

WE HAD A DOUBLE A CREDIT RATING, UH, IN KEEPING WITH OUR FINANCIAL POLICY.

WE HAD PREPARED A COST OF SERVICE THAT YEAR.

WE FOUND THAT REVENUES WERE ADEQUATE TO SUPPORT THE COSTS, BUT WE KNEW THAT WE WERE TRENDING IN THE WRONG DIRECTION, THAT WE WERE GONNA NEED A RATE INCREASE.

COSTS WERE EX, UH, GROWING FASTER THAN OUR, OUR REVENUES WERE.

SO WE MOVE INTO 2020 AND COVID ARRIVES.

SO INSTEAD OF STARTING A RATE CASE, AUSTIN ENERGY TEMPORARILY REDUCED ITS RATES, PROVIDING COVID RELIEF.

WE USED CASH TO FUND THE DEFICIT.

OUR OPERATING NET MARGINS TURNED NEGATIVE.

CASH REMAINED RELATIVELY STABLE, BUT OUR DSC FALLS, OUR DEBT SERVICE COLLEGE FALLS FROM FOUR TO ALMOST 2.1, ALMOST IN HALF.

NOW, IN TRANSPARENCY, FULL TRANSPARENCY, PART OF THAT'S DUE TO THE NACODOCHES PLANT THAT WE BOUGHT.

THINGS START TO GET A LITTLE BETTER AS FAR AS COVID, UH, IS CONCERNED.

COVID SUBSIDES.

WE, WE HIT WINTER STORM URI.

2021 BECOMES OUR TEST YEAR.

NOW INFLATION STARTS TO SET IN REVENUE SHORTFALLS CONTINUE.

HOW DO YOU BRIDGE THE GAP? WE USE CASH.

CASH REMAINS STABLE IN 21, ONLY BECAUSE THERE'S A HUNDRED MILLION DOLLARS

[01:45:01]

OPERATING NET MARGINS ARE NEGATIVE.

NOW.

DSC FALLS BELOW THE TARGET TO TWO X 2022.

WE START OUR BASE RATE PROCEEDING.

REVENUE SHORTFALLS CONTINUE.

INFLATION NOW REACHES 9%.

WE USE CASH TO FUND THE DEFICIT.

SEE THE RECURRING THEME THERE.

WE FALL BELOW 150 DAYS TO 117 DAYS.

NOW WE'RE A HUNDRED MILLION DOLLARS UNDER RECOVERED.

AND, UH, POWER SUPPLY COSTS, MARGINS ARE NEGATIVE.

THE, UM, THE, UH, A, A POSITIVE FOR THAT YEAR IS THAT WE HAD A HOT SUMMER, UH, GENERATED ADDITIONAL BASE REVENUES.

DSC IMPROVES TO 2.1 AND WE'RE DOWNGRADED TO AA MINUS 2023 GETS HERE.

WE HAVE A $30 MILLION BASE RATE INCREASE GRANTED IN, IN DECEMBER OF 2022.

DOESN'T GO IN EFFECT INTO EFFECT UNTIL MARCH OF 2023.

BUT THAT $30 MILLION, WE NEED IT BACK IN 21.

WE JUST START, THE NEW RATES JUST START GOING INTO EFFECT IN MARCH OF 2023.

REGULATORY LAG.

WE HAD A PARTIAL YEAR WITH NEW RATES.

SO REVENUE SHORTFALLS PERSISTED.

WE USED CASH TO FUND THE DEFICIT.

90 DAY CASH FALLS TO 94 DAYS.

WE HAD A NEGATIVE NET MARGINS.

AND OVER THE FOUR YEAR PERIOD, FROM 2020 TO 2023, WE SUFFERED OVER $140 MILLION.

IN, IN COMBINED NET LOSSES, OPERATING MARGINS IMPROVED, BUT REMAINED BELOW THE DSC UH, BELOW TARGET AS DSE MOVES TO 2.3.

HERE'S THE, HERE'S A, A BIG CULPRIT OF, OF, UM, WHAT'S DRIVING OUR COSTS NOW.

INFLATION AND SUPPLY CHAIN IMPEDIMENTS, DRIVE POLES, TRANSFORMERS, AND CONDUCTORS.

TWO TO THREE TIMES WHAT WE PAID FOR 'EM IN 21.

THE STORY KIND OF ENDS HERE.

CITY COUNCIL, UM, GAVE US ANOTHER 2% BASE RATE INCREASE.

SO ADDITIONAL REVENUES START TO IMPROVE KPIS, WHICH I SHOWED YOU, UH, A LITTLE EARLIER, UH, DAYS, CASH ON HAND STARTS TO IMPROVE, BUT ONCE AGAIN, DAYS OF CASH ON HAND ARE STILL BELOW THAT 150 DAY MINIMUM AND WELL BELOW THE 200 INDUSTRY STANDARD.

AND NOW AUSTIN ENERGY'S IN A POSITION WHERE WE HAVE TO TRY TO PLAY CATCH UP TO INFLATION.

CAN RUSTY, CAN YOU JUST REMIND US, I I, I LIVE THIS WHOLE THING AND I'VE FORGOTTEN IT'S NOT THAT COUNCIL GAVE ANOTHER BASE RATE INCREASE.

IT'S THAT WHEN THEY APPROVED THE BASE RATE, THEY, THEY PHASED IT IN? NO, NO.

CITY COUNCIL APPROVED A 2% ACROSS THE BOARD BASE RATE INCREASE IN OUR BUDGET LAST YEAR.

AND WE'LL BE ASKING FOR ONE AGAIN THIS YEAR.

AND THEN MY OTHER QUESTION FOR YOU IS, IF YOU REMEMBER, UM, ONE OF THE THINGS WE DID IS WE WENT FROM A FIVE TIERED RESIDENTIAL RATE TO A FOUR TIERED AND WE MADE IT SLIGHTLY LESS STEEP.

HAVE YOU GUYS DONE ANY ANALYSIS TO KNOW WHETHER THAT HELPED IN TERMS OF, UM, YOU KNOW, A MORE, A MORE YEAH, STEADY.

SO IT, IT DOES, WE, I HAVEN'T MEASURED IT PER SE.

YOU HAVEN'T MEASURED, BUT, BUT THE RATES ARE PERFORMING LIKE WE EXPECTED THEM TO.

SO THIS GIVES YOU AN IDEA OF, OF INFLATION.

SO IF YOU READ IN THE PAPERS, THE SENSATIONALISM OF, OF, YOU KNOW, UH, INFLATION MEASURED BY CPI AT WHAT, 40 YEAR HIGHS? WE'LL LOOK AT THE INFLATION FOR TRANSFORMERS, POLLS AND CONDUCTORS, AND THIS IS FROM 2021.

THEY RANGE ANYWHERE FROM EIGHT 80 TO 200% INFLATION.

KEEP IN MIND THAT WE HAD A 5% BASE RATE INCREASE THAT WAS NEEDED IN 21, AND WE HAD A 2% BASE RATE INCREASE THAT CITY COUNCIL GRANTED TO US SIX MONTHS AGO, FIVE MONTHS AGO.

SO HOW MUCH OF THIS IS TRANSITORY? WELL, YOU'RE, YOU'RE GONNA SEE SOME COST DECLINES.

WELL, I DON'T KNOW THAT THERE'LL BE COST, UH, COST DECLINES, RIGHT? MAYBE THE RATE OF GROWTH MAY SLOW, BUT THESE WILL NOW ARE, ARE STARTING TO PASS THROUGH THE SYSTEM.

SO THESE ARE, AND SO THESE ARE COSTS, UM, THAT WE'VE, YOU KNOW, WE'VE HAD TO BUY THIS STUFF AS WE MOVE THROUGH THE SYSTEM PAID FOR THOUGH BY BASE RATES, WHICH, WHICH HAVEN'T INCREASED AT THAT RATE.

WAS THERE INDUSTRY CONSOLIDATION IN THE PAD MOUNTED TRANSFORMER THAT MADE IT TO WHERE THERE'S LESS COMPETITION? DID COPPER PRICES DOUBLE OR TRIPLE? AND I THINK COVID SHUT DOWN ALL THOSE SUPPLY SUPPLY

[01:50:01]

CHAINS.

THEY HAD TO COME BACK ONLINE.

AND SO THERE WERE SHORTAGES AND PEOPLE NEEDED THEM THAT DROVE IT UP.

AND THEN OF COURSE, JUST, JUST INFLATION, RIGHT? JUST LIKE EVERYTHING ELSE THAT INFLATION HAS TOUCHED, RIGHT? GROCERIES, SO FORTH AND SO ON.

IS THERE, IS THERE ALSO INCREASED COMPETITION FOR THESE THINGS? I, I MEAN, ERCOT IS PUTTING OUT PRESS RELEASE SAYING, YOU KNOW, THEY'RE GONNA GET 40 GIGS MORE LOAD AND ALL THAT STUFF NEEDS THIS STUFF TOO.

I MEAN, IS THAT WHERE YOU'RE ALSO, ARE YOU COMPETING WITH OTHER WELL, WELL, IN, IN THOSE YEARS, THOSE EARLY YEARS, RIGHT FROM, UM, 21, 22 AND 23, WE WERE COMPETING WITH EVERY UTILITY THAT NEEDS TO BUY, TRANSFORM EVERY, EVERY ELECTRIC UTILITY IN, IN THE STATE OR NOT, NOT IN THE STATE, IN THE NATION, WHOEVER, WHOEVER NEEDED THEM.

I MEAN, IT'S, IT'S NOT LIMITED TO ERCOT CERTAINLY.

RIGHT? NO, I WAS JUST, UM, BACK OF CHAIRMAN TUTTLES IS LIKE, DID EXPECT IT TO CONTINUE TO GO UP OR MELLOW DOWN OR LIKE, WE HADN'T SEEN ANYTHING YET.

BUT I, I'M, I WOULD HOPE THAT THEY WOULD NOT BE INCREASING AT THE SAME RATE THAT THEY HAVE FOR THE LAST TWO YEARS.

FAIR.

SO BRINGS US TO QUESTION NUMBER THREE.

WHAT ARE WE GONNA DO ABOUT IT? SO LET ME RECAP REAL QUICK BEFORE THAT.

SO WHAT'S THE CURRENT SITUATION? WE'RE SHORT ON CASH.

WE KNOW WE HAVE TO HAVE BASE RATE INCREASES.

WE DIDN'T MEET KPIS, BUT RATE INCREASES ARE WORK INTO OUR FAVOR.

HOW'D WE GET HERE? WE TALKED ABOUT COVID REGULATORY LAG AND INFLATION.

WHAT ARE WE GONNA DO ABOUT IT? WE ARE GOING TO RECOMMEND, UH, UH, AN ANNUAL INCREMENTAL BASE RATE INCREASES THROUGHOUT OUR FIVE-YEAR FORECAST.

AND WE'LL GET TO THOSE SPECIFICS IN JUST A LITTLE BIT.

WE'RE GONNA FILE AN INTERIM, UH, TRANSMISSION COST OF SERVICE IN 2025 TO GENERATE ADDITIONAL REVENUE.

WE'RE GONNA MAKE SURE THAT OUR FEES AND OUR CONTRIBUTIONS IN AID TO CONSTRUCTION, UH, ARE AT THE LEVELS TO ENSURE COST RECOVERY.

WE'RE GONNA COLLECT THE POWER SUPPLY UNDER RECOVERY.

SO WE CAN, ONCE AGAIN, THE, THE NOTION IS, IS TO GET TO THAT 150 DAYS OF CASH ON HAND, WE WILL HAVE STRICT COST CONTROL.

UH, THIS ONE, ONE OF THE THINGS THIS FORECAST DOES IS SET TARGETS AND THEN WE ASK OUR BUSINESS UNITS TO MEET THOSE TARGETS.

SO WE STAY ON TRACK, UH, WITH OUR FINANCIAL METRICS.

QUICK QUESTION ON, ON THE TRANSMISSION COST OF SERVICE.

THAT I BELIEVE HAS TO BE APPROVED BY THE PUC DOES.

IT DOES.

SO DOES IT FIRST, AM I RIGHT ON THAT? DOES SO WOULD IT FIRST GO TO CITY COUNCIL THEN? NO.

NO.

SO, UH, UH, TRANSMISSION COSTS ARE, THE PRIMARY JURISDICTION IS PUBLIC UTILITY COMMISSION.

SO IT WOULD, IT WOULDN'T GO TO CITY COUNCIL AND GO STRAIGHT THERE.

NO, STRAIGHT THERE.

OR VERY SOON THAT WE NEED TO REALLY FIGURE OUT, UH, HOW TO, UH, AVERT THAT SITUATION.

AND WE WOULD BE FILING INTERIMS, WHICH ARE AN ABBREVIATED FORM.

UH, WE WILL BE GOING, UH, FORWARD WITH A FULL TCO HERE PROBABLY IN THE NEXT COUPLE OF YEARS.

FOR THE, FOR THE LAST COUPLE YEARS I'VE TALKED ABOUT THE, UH, FEES, THE UN UNDER WHAT I PRESUME WAS UNDER RECOVERY OF THE C-C-I-A-C TIONS AND CONSTRUCTION.

WHAT, HOW, HOW DO YOU, HOW, WHAT TYPE OF INCREASE DO YOU ANTICIPATE THERE? I DON'T KNOW.

UM, I, I HAVEN'T LOOKED AT THOSE YET.

WE, UH, WE WILL, THAT'LL BE OUR NEXT STEP.

UH, AND I'LL, I'LL TELL YOU WHY HERE IN JU JUST A SECOND.

IF YOU'LL BEAR WITH ME.

UM, WE ARE GONNA LOOK AT COSTS THAT WE CAN CONTROL, LIKE THE GENERAL FUND.

WE HAVE ASKED THE CITY TO COUNT, UH, CITY TO WORK WITH US.

UH, THE, UH, GENERAL FUND WENT UP 11.6% IN THE FORECAST, WENT FROM 115 MILLION IN 2024 TO 124 MILLION IN 29.

AND THEN WE, WE'VE, UH, AT LEAST IN THE SHORT RUN, THEY'VE AGREED TO CAP IT AT 2% FOR THERE GOING FORWARD.

UH, AND OUR FINANCING STRUCTURE WILL REALLY FOCUS IN ON THIS MAN, UH, THIS DEBT TO EQUITY FINANCING, ONCE AGAIN, TO MAXIMIZE CASH POSITION.

'CAUSE WE HAVE TO DO A COUPLE OF THINGS, RIGHT? WE HAVE TO BALANCE AFFORDABILITY, WE HAVE TO GET OUR KPIS BACK IN LINE, AND WE HAVE TO GET OUR, OUR LIQUIDITY UP.

QUICK QUESTION ON THE FINANCING, UM, ON THE PREVIOUS SLIDE, IS THERE A RISK OF, UM, ANOTHER DOWNGRADE FROM THE RATING AGENCIES? WELL, WE WERE DOWNGRADED.

UH, I, UH, BACK IN, UH, 22 AND, UH, IF I DID, I, CAN YOU REPEAT YOUR QUESTION? MAKE SURE I UNDERSTOOD IT CORRECTLY? YEAH.

SO THE QUESTION IS, WE, WE HAD A DOWNGRADE IN, IN 2022.

AND THEN YOU SHARED IN PREVIOUS SLIDES, YOU KNOW, SOME OF THE RECENT, UM, FEEDBACK FROM THE RATING AGENCIES.

AND OBVIOUSLY THINGS ARE NOT GOING GREAT.

SO MY QUESTION IS, IS THERE THE RISK OF ANOTHER DOWNGRADE, UH, EITHER, YOU KNOW, IN THE SHORT TERM

[01:55:01]

THE DOWNGRADE RISK IS CERTAIN WITHIN THE REALM OF POSSIBILITY.

IT PROVIDES AFFORDABILITY THROUGH GRADUALISM.

AND I, AND I, AND YOU'LL SEE THAT HERE IN, IN THE, IN THE, IN THE RESULTS THAT I'LL GET TO IN JUST A SECOND.

SO THE FORECAST IS THE FIRST STEP IN THIS FIVE STEP PROCESS TO GET TO THE BUDGET.

THERE'S THREE THINGS I WANT YOU TO TAKE AWAY FROM HERE.

FIRST, THAT THE FORECAST DEFINES THE REVENUES, WHICH SETS THE SPENDING LIMITS, RIGHT? AND THEN IT SETS TARGETS FOR OUR BUSINESS UNITS TO, TO BUDGET TOWARDS.

AND THEN FINALLY, IF YOU'LL LOOK DOWN HERE, KEEP IN MIND THAT AS WE MOVE THROUGH THE BUDGET PROCESS, THIS FORECAST WILL CHANGE.

SO NOW WE'RE GONNA START TALKING NUMBERS A LITTLE BIT.

I WON'T READ ALL OF THIS.

JUST KNOW THAT WE PULL ON A VARIETY OF SOURCES TO DEVELOP THIS, UM, UH, THIS, UM, FORECAST.

SO HERE ARE OUR ASSUMPTIONS FOR OUR FORECAST, AND WE'LL START WITH REVENUE.

WE TALKED ABOUT NEEDING BASE RATE INCREASES INTO THE FORECAST PERIOD.

SO THIS WHAT THIS FORECAST HAS BUILT IN FOR REVENUE.

OUR, OUR 2% INCREASES IN 25, 26, 27, A 7% INCREASE IN 28, AND ANOTHER 2% INCREASE IN 29.

NOW THAT STATEMENT SHOULD BEG TWO QUESTIONS.

WHY 7%? AND WHY IN 2028, I BELIEVE THAT THIS FORECAST BEARS OUT THAT THESE SMALL INCREMENTAL 2% INCREASES.

WE'LL, RIGHTSIZE THE SHIP, IT'LL DRIVE KPIS TO THE TARGET.

IT STARTS THOSE BASE REVENUES TRACKING WITH INFLATION.

IT'LL AVOID RATE SHOCK WHENEVER WE DO OUR FIVE-YEAR FORECAST, OUR FIVE-YEAR COST OF SERVICE.

AND I'LL SHOW YOU A CUSTOMER BILL IMPACT HERE IN JUST A SECOND.

BUT WHAT THESE 2% INCREASES DON'T DO IS THEY DON'T SOLVE THE 150 DAY MINIMUM PROBLEM.

AND SO THE 7% IN 2028 DOES THAT.

AND WHY 28? 'CAUSE IT'S THE FIRST YEAR WE HAVE THAT FIVE YEAR FORECAST.

IN THAT FIVE YEAR CYCLE.

LET ME BACK UP SO I CAN, SO OTHER THINGS THAT WERE INCLUDED, I WON'T GO THROUGH ALL OF 'EM, BUT THERE, THE COMPOUND ANNUAL GROWTH RATE, UH, FOR THE FIVE YEAR PERIOD IS, IS A 2% CUSTOMER GROWTH PER YEAR AND 1.6% ENERGY SALES.

UH, TRANSMISSION REVENUES INCREASED AT 13 MILLION.

WE'RE EXPECTING A $15 MILLION FEMA REIMBURSEMENT IN 2025.

UM, LABOR ESCALATION, UH, 4% FOR 25, 3 0.5%.

THEREAFTER, INFLATION IS ONLY FORECASTED AT 2.2% FOR 2025.

AND THEN TRAILS OFF SLIGHTLY AFTER THAT.

WE MADE TWO MANUAL ADJUSTMENTS, UH, TO COSTS THAT WERE NOT TRENDED UP.

AND THEY WERE FOR VEGETATION MANAGEMENT, WHICH WAS $10 MILLION, ALMOST 50% INCREASE IN THAT BUDGET, AND ADDITIONAL $5 MILLION FOR ALLTECH LEASE.

THOSE ARE HEAVY BUCKET LEASES THAT WERE, WERE COMING DUE.

WE TALKED ABOUT GENERAL FUND FIVE YEAR, UH, CAPITAL IMPROVEMENT PLAN WAS BASED ON THE 2024.

YOU CAN SEE THAT WE ESCALATED IN THE FINAL YEARS, AND WE ASSUME THAT THAT FIVE YEAR CIP PLAN IS FUNDED, UH, WITH 50% CASH.

THERE ARE A FEW CITYWIDE ESCALATORS.

YOU CAN SEE THEM THERE.

UH, MOST INCREASE BY 5%.

KEEP IN MIND THE, THE THE DOLLARS THAT PAY FOR THAT BASE RATES, RIGHT? THAT WE'RE ASKING A 2% INCREASE.

THIS TALKS JUST A LITTLE BIT, THIS TALKS JUST A LITTLE BIT ABOUT THE FORECAST PROCESS.

SO WE START WITH A LOAD FORECAST.

AND WHAT YOU GET AT THE END OF THE DAY WITH THAT IS BILLING DETERMINES CUSTOMER COUNT ENERGY DEMAND IN THREE BIG BUCKETS.

RESIDENTIAL, COMMERCIAL, INDUSTRIAL.

WE HAND THAT OFF TO OUR REVENUE FOLKS, THEY'LL TAKE THAT AND THEY'LL BREAK IT DOWN INTO OUR RATE CLASSES, RESIDENTIAL AND BY TIERS WITHIN RESIDENTIAL, SMALL COMMERCIAL S TWOS, S3 PRIMARIES TRANSMISSION, YOU, YOU, YOU GET IT RIGHT? WE APPLY OUR TARIFFS OR THE INCREASES THAT WE ARE PROPOSING THROUGH THAT FORECAST PERIOD, THAT, THAT, UH, THAT SETS REVENUE.

AND THEN

[02:00:01]

IT GOES INTO OUR, OUR, UM, FINANCIAL FORECAST.

WE MARRY THAT UP WITH, WITH THE COST INCREASES.

SO AFTER A LONG TO DO THIS IS KIND OF WHAT WE'RE LOOKING AT WITH THE ASSUMPTIONS AND TRENDS THAT WE TALKED ABOUT.

REVENUE WILL INCREASE FROM 1.8 BILLION TO 2.1 BILLION OVER THE FIVE YEAR PERIOD.

NOW, 2025 EXPENSES GO UP, UM, UH, ABOUT, UM, 12% IN 2025.

THAT'S PRIMARILY CATCHES, UH, THE RATE OF INFLATION FROM WHAT WE HAD BUDGETED IN 24.

SO 12% IN 2025, DRIVEN IN GENERAL BY INFLATION, BUT MORE SPECIFICALLY, UH, BY AN INCREASE, INCREASE IN REGULATORY CHARGES.

THAT'S WHAT WE PAY TRANSMISSION PROVIDERS OUT IN ERCOT TO USE THEIR, UH, SYSTEMS. UH, A CYCLICAL MAINTENANCE IN OUR, IN ONE OF OUR POWER PRODUCTION PLANTS.

AND THEN A NEARLY $20 MILLION INCREASE ON ELECTRIC SERVICE DELIVERY DRIVEN PRIMARILY BY THIS TREE TRIMMING IN THIS ALLTECH LEASE.

NOW, ONCE YOU GET PAST 2025, THOSE INCREASES RANGE FROM ONE TO 4% OVER THAT, THAT PERIOD.

SO MUCH, MUCH IN LINE, UH, WITH WHAT, UM, SOMEONE MIGHT CONSIDER TAME INFLATION.

THE REST ARE, ARE, UH, RELATIVELY SELF-EXPLANATORY.

I DO DRAW YOUR ATTENTION TO AE RESERVES.

THAT'S OUR EFFORT TO GET TO THAT 150 DAY MINIMUM AND BEYOND.

YOU MENTIONED, UH, POWER PLANT MAINTENANCE.

WHICH PLANT WAS THAT? IT WAS FPP.

THEY GO ON A THREE YEAR CYCLE.

SO CHALLENGES AND OPPORTUNITIES.

SO IT'S THEIR TURN IN 25.

OKAY, THANK YOU.

THIS IS LAST YEAR'S CIP GROSS UP FOR THE OUTSIDE YEARS.

THE MAIN TAKEAWAY HERE, IT'S ABOUT 1,000,000,002, WE'RE GONNA FUND IT.

50% CASH, 50% DEBT.

HERE ARE A HANDFUL OF THE MAJOR CAPITAL, UH, ITEMS. THE, UH, FIELD SERVICE CENTER, OUR RESILIENCE PROGRAM, SUBSTATIONS.

FINALLY, WE GET TO KPIS AND, AND I THINK THE QUESTION IS, IS WHEN, WHEN ARE WE GONNA GET THERE? RIGHT? WELL, IN THIS INSTANCE, UM, YOU'LL NOTICE THERE'S NOT A WHOLE LOT OF RED EXCEPT FOR DAYS OF CASH ON HAND AND DEBT TO CAPITAL.

UM, WE DON'T GET TO THAT 150 DAY MINIMUM UNTIL 2028.

I THINK THERE'S WORK TO BE DONE ON THAT.

I THINK THERE'S CAUSE FOR CONCERN, UH, WITH RATING AGENCIES THAT IT TAKES THAT LONG.

SO REMEMBER I SHOWED YOU THE RING CIRCLE, THE FIVE STEP PROCESS.

WELL, ONCE WE GET INTO THAT BUDGET PROCESS, WE'LL HONE OUR PENCILS AND LOOK AT EVERY LEVER THAT WE CAN PULL TO TRY TO HASTEN THAT.

BUT WITH RATE INCREASES, YOU HAVE TO HAVE AFFORDABILITY, RIGHT? AND SO HERE'S WHAT THE TYPICAL CUSTOMER WILL PAY.

AND THE CAP CUSTOMER GOES FROM 119 UH, DOLLARS IN, UH, 2024 UP TO 1 28.

IF YOU'RE A CAP CUSTOMER, I THINK IT GOES UP WHAT, $5, $6? 90, 93 TO 98.

WE HAVE A 2% AFFORDABILITY GOAL.

THAT IS THE YELLOW LINE.

OUR AVERAGE SYSTEM RATE IS THE BLACK LINE.

YOU CAN SEE WE'RE BELOW THAT.

AND YOU CAN SEE, UH, THAT THE ORANGE LINE ABOVE IT IS A, UH, AN ELECTRICAL, AN URBAN ELECTRICAL, UH, INDEX DRIVER OR INFLATION DRIVER.

YOU CAN SEE THAT WE'RE BELOW THOSE.

WHEN ANY ADDITIONAL BASE RATE INCREASES, OUR ENERGY SALES RELY SOLELY ON CUSTOMER GROWTH, RIGHT? WE KNOW THAT ON A WEATHER NORMALIZED BASIS, EVERYBODY'S GETTING MORE EFFICIENT.

INFLATION, UH, DRIVES COSTS INORDINATELY HIGHER, AND WE HAVE INCREASED DEBT SERVICE DUE TO EXPANDED CIP PLANS.

WE DO KNOW THAT THE APPROVED BASE RATES THAT WE'VE LAID OUT WILL STABILIZE OUR KPIS AND OUR FINANCIAL POSITION.

WE KNOW THEIR CASH POSITION IS IMPROVING BECAUSE OF ADDITIONAL BASE RATES AND BECAUSE WE'RE COLLECTING THAT, THAT POWER SUPPLY COST, AND WE KNOW WE CAN SAY THAT OUR FORECASTED RATES REMAIN WITHIN THE 2% AFFORDABILITY GOAL.

AND THAT, LADIES AND GENTLEMEN, IS THE CONCLUSION WE ARE CUSTOMER DRIVEN AND COMMUNITY FOCUSED.

IS THERE ANY QUESTIONS? YES, SIR.

NOW I'M REMEMBERING WHAT I REMEMBERED.

[02:05:01]

SO I THINK WHAT CITY COUNCIL DID IS ON THE CUSTOMER CHARGE, THEY PHASED IT IN YES.

OVER TIME.

THAT IS CORRECT.

SO IS YOUR 2% A YEAR INCLUDING THAT CUSTOMER CHARGE, OR THAT'S ABOVE, DIDN'T THEY DO LIKE 13, 14? SO THOSE ARE ALL REVENUE NEUTRAL.

YOU ARE CORRECT.

IN THE RATE CASE, COUNCIL APPROVED A STAIR STEP APPROACH FOR 13, 14, AND 15.

BUT AS THOSE CUSTOMER CHARGE WENT UP, THE ENERGY CHARGE WENT DOWN, ENERGY RATES WENT DOWN.

SO THEY WERE SO ALL REVENUE NEUTRAL.

SO THE 2% THAT YOU'RE SAYING CITY COUNCIL NEEDS TO INCREASE EACH YEAR IS IRRESPECTIVE OF THAT CHANGE.

AND IS IS THE 2%, IS THAT SOME LIMIT THAT CITY COUNCIL CAN DO WITHOUT NO, NO.

I THINK CITY COUNCIL CAN, HAS, HAS AUTHORITY TO APPROVE WHATEVER THEY WANT TO.

WE FEEL THAT AT THIS STAGE, 2% IS A REASONABLE AMOUNT TO ASK.

IT INKS KIND OF THE AFFORDABILITY GOAL, IT IT STARTS US TO TRACK WITH, WITH INFLATION, UM, AND GIVES US SOME RELIEF TO KIND OF CATCH UP WITH KPIS.

DOESN'T GET US THERE WITH MINIMUM DAYS OF CASH ON HAND.

IT'S MORE A QUESTION OF, OF FAIRNESS TO THE RATE PAYERS.

AT WHAT POINT, IF YOU DO 2% EVERY YEAR FOR MANY YEARS, IT SUDDENLY BECOMES BASICALLY A RATE CASE.

SO IS THERE SOME GUIDANCE ON THAT? WE, WE DO.

WE, WE ARE BOUND BY FINANCIAL POLICY TO DO A COST OF SERVICE EVERY FIVE YEARS.

SO IF THE FACT TO, TO THE EXTENT YOU OVER RECOVERED, THAT COULD BE ADJUSTED IN THE FUTURE.

THERE'S ALWAYS A FAIL SAFE OUT THERE, BUT WITH THE RATE OF INFLATION THAT WE'VE SEEN, MY MONEY IS ON THAT, THAT WE WILL NOT BE OVER RECOVERED.

UM, OH, SORRY.

FOLLOW UP ON THE FAYETTE.

SO YOU'RE SAYING THAT THERE'S SCHEDULED OUTAGE IN 25 TO DO MAINTENANCE? YES.

AND THAT, THAT'S ONE OF THE THINGS THAT WILL DRIVE UNDER RECOVERY IN THAT YEAR? WELL, IT, IT DRIVES AN INCREASE IN COSTS.

MM-HMM, , YES.

CAN YOU TELL US HOW MUCH, I DON'T HAVE THAT NUMBER OFF THE TOP OF MY HEAD.

I'M SORRY.

CAN YOU FOLLOW UP WITH THAT? SURE.

BUT WHATEVER IT IS, IT'LL JUST BE A TREND.

SO I MEAN, IT, IT HAS NO BEARING OTHER THAN THERE'S A HISTORICAL NUMBER SOMEWHERE EMBEDDED PROBABLY THREE YEARS AGO THAT GETS ESCALATED.

YEAH, I HAD A COUPLE OF QUESTIONS.

UM, YOU MENTIONED, UH, OBVIOUSLY 2% A YEAR TILL 2028, FY 2028, AND THEN YOU ALSO MENTIONED 8% IN 2028.

BUT IS, IS THAT WHAT, 2% A YEAR FOR FOUR YEARS IS THE 8% OR THERE ISN'T ANOTHER 8% ON TOP OF WHAT WE'VE DONE ALREADY? THE, THE, I JUST WANTED TO MAKE SURE THAT WAS, UH, UNDERSTANDING THAT CORRECTLY.

SO THE, SO THE FORECAST INCLUDES A 2% BASE RATE INCREASE IN 2025, ANOTHER 2% INCREASE IN 2026.

ANOTHER BASE, UH, 2% BASE RATE INCREASE IN 2027.

THEN 2028 IS THAT ANNIVERSARY OF A FIVE YEAR COST OF SERVICE.

AND THE FORECAST SAYS WE NEED 7% INCREASE IN BASE RATES TO HIT 150 DAY CASH ON HAND.

THAT WAS THE TRIGGER.

THAT'S, THAT'S THE 7%.

THAT'S THE AMOUNT WE NEED.

AND ARE YOU AVERAGING RESIDENTIAL, COMMERCIAL, INDUSTRIAL, ALL, OR IS THAT EVERYBODY? IT'S ACROSS THE BOARD.

SO THERE WOULD BE 7% IN 2028, AND THEN THE FOLLOWING YEAR IN 29, THERE WOULD BE ADDITIONAL 2%.

THAT'S WHAT'S EMBEDDED IN THE FORECAST.

SO THAT, SO THAT WAS MY POINT.

IS 2%, 2%, 2% AND 8% OR 7%, CORRECT? 2%, 2%, 2%.

SEVEN AND TWO.

AND THEN MY OTHER QUESTION, UH, WAS ON THE, UH, GENERAL FUND TRANSFER? YES, SIR.

UM, HAS IT, IT LISTED WE WERE AT 11.6%.

AND IS THAT A POLICY OR OBVIOUSLY IT'S A VERY SPECIFIC NUMBER, RIGHT? PO BUT, UH, POLICY SAYS THAT WE WILL, UM, THE GFT WILL BE 12% OR LESS IN THE LAST RATE CASE, UM, TO PROVIDE RATE RELIEF TO THE CUSTOMERS, BUT YET ALLOW AUSTIN ENERGY TO, UM, UH, GENERATE THE REVENUES THAT IT NEEDED.

CITY COUNCIL AGREED TO REDUCE THE GFT TRANSFER AND THAT COST OF SERVICE, AND THE FALLOUT OF THAT WAS 11.6.

INCREASE PER YEAR, THAT'S 2% OF THE CURRENT AMOUNT OF THE TRANSFER OR, OR YOU'RE ADDING 2%? WELL, ANYWAY, MAYBE THAT, THAT'S MY ANSWER, BUT, UM, IT'S TWO.

YEAH, BUT, AND WE THINK THAT THE, AND WHEN YOU SAY 2%

[02:10:01]

SO WE'RE SAYING, LET'S SAY IN THE 2020, WELL, CURRENTLY IT'S 115, RIGHT? A HUNDRED, YES, SIR.

SO IF WE ADD 2% OF THAT, IT WOULD BE WHATEVER, 118 HUNDRED 90.

NO.

SO IT JUMPS UP IN, IN 2025.

WE'RE, WE'RE PROPOSING THAT WE PAY THE CITY 11.6% GFT, THAT INCREASES THE GFT IN THE FORECAST TO $124 MILLION.

FROM THERE ON, IT'S KIND OF CAPPED AT 2%, ABOUT A $3 MILLION A YEAR INCREASE.

SO 1 24, 1 27, 1 30, SOMETHING LIKE THAT.

IT'S TWO OR IT'S TWO OR 3 MILLION A YEAR, BUT IT'S 2% OF THAT AMOUNT OF THE TRANSFER.

YES, SIR.

2% OF THE PREVIOUS YEAR.

AND THAT KEEPS US DEFINITELY BELOW 12, BUT HOPEFULLY EVEN BELOW THE 11.6.

IS THAT KIND OF WHAT WE'RE THINKING? WELL, IT'S, IT, IT FALLS WITHIN POLICY, WHICH SAYS IT'S 12% OR LESS.

BUT I GUESS HOW DOES THAT, HOW DOES THAT HELP US? IF, I DON'T KNOW, I GUESS AT SOME POINT IT'S LIKE, ISN'T THERE SOME KIND OF CAP AT SOME POINT ? WELL, IT SEEMS LIKE IF IT JUST KEEPS GOING UP EVERY YEAR THEN, AND WE DON'T HAVE A CAP, RIGHT? I GUESS 12% IS THE CAP, BUT YES, SIR.

UM, I THINK IT'S A INTERESTING, UM, WELL THAT WAS MY KIND OF MY QUESTION IS, YOU KNOW, THIS PERCENT UNTIL WE HIT, YOU KNOW, A CERTAIN NUMBER, BUT, UM, I DON'T MIND GOING UP 2% A YEAR.

I'M JUST, UH, I THINK IT'S A INTERESTING THAT YOU, YOU STILL SEE THAT 3 MILLION BUMP EVERY YEAR, AND I'M JUST TRYING TO SEE, YOU KNOW, THE, THE UTILITY IS THEN NOT EATING THE, AN ADDITIONAL 3 MILLION A YEAR FOR AN INDEFINITE AMOUNT OF TIME.

SO IT SEEMS LIKE THAT INDEFINITE WORD IS WHAT, UM, IS JUST KIND OF STICKING IN MY, IN MY HEAD.

SO, BUT I JUST WANTED TO MAKE SURE I WAS UNDERSTANDING IT CORRECTLY.

SO THANKS A LOT.

WHAT ELSE CAN I ANSWER FOR YOU? YES, SIR.

UH, SO I AM CLEAR THE 2% INCREASE IN, IN BASE RATES, THAT WAS PART OF THE, UH, RATE CASE THAT WAS COMPLETED LAST YEAR? NO, NO.

SO ALL OF WHICH IS, UH, BECAUSE IT'S A FIVE, YOU HAD MENTIONED A FIVE YEAR PLAN.

SO INSTEAD OF GOING FIVE YEARS, YOU'RE TALKING ABOUT BECOMING EFFECTIVE IMMEDIATE.

THIS YEAR WE, YES.

IT, LAST, LAST YEAR IN THE 2024 BUDGET, WE ASKED COUNCIL FOR A 2% BASE RATE INCREASE BECAUSE OF THE INFLATION, UH, PRESSURES THAT I SHOWED YOU.

AND THAT, AND WE JUST SAID 2% ACROSS THE BOARD, AND THEY APPROVED THAT IN THE BUDGET PROCESS.

SO ALL OF WHICH IS HOW, WHERE, WHERE ARE THE WHOLESALE CUSTOMERS, UH, INCLUDING THE MUNICIPALITIES IN TERMS OF, UH, UH, APPROVAL OF THE, OF THEIR RATES ARE GONNA GO UP.

CAN THEY NOT GO TO THE PUC AND CONTEST? ABSOLUTELY.

THE, THE OUT OUTSIDE CUSTOMERS, IS THAT WHAT YOU'RE ASKING? YES, ABSOLUTELY.

OUTSIDE CUSTOMERS, BUT, BUT THE OUTSIDE CUSTOMERS CAN CONTEST THE, THE BASE RATES, BUT THEY CAN CONTEST THE PSA, THEY CAN CONTEST THE REGULATORY ANY RATE CHANGE AS WELL WITHIN THEIR PURVIEW.

ARE THEY, ARE THEY ON BOARD ON, ARE THEY, ARE THEY BEING INFORMED AND ARE THEY, UH, ACCEPTING OF THIS? SO, UM, THEY ARE, MY UNDERSTANDING IS, IS THAT, UH, OUR LARGEST CUSTOMERS ARE, WERE WELL AWARE OF THE 2% BASE RATE INCREASE LAST YEAR.

AND NO, YOU DON'T HAVE ANY FEEDBACK.

WE MAY BE THE FIRST TO HEAR.

I HAVEN'T HEARD ANY MORE FEEDBACK FROM THEM.

OTHER THAN THAT, THAT THEY'RE AWARE OF IT.

SO WHEN I SAY A 2% BASE RATE'S, REALLY ABOUT A 1% OVERALL INCREASE, AND FOR THE TYPICAL CUSTOMER, IT'S ABOUT A DOLLAR A MONTH.

KEEP IN MIND BASE RATES, ESPECIALLY FOR THE BIG GUYS, ONLY ABOUT HALF THEIR BILL.

SO YOU'RE TALKING ABOUT ABOUT A 1% INCREASE OVERALL, MOSTLY DEMAND CHARGES OR THE WELL BASE RATES BA DEMAND.

THERE ARE DEMAND CHARGES IN THE BASE RATES, CERTAINLY, BUT, BUT ONCE AGAIN, IF YOU TALK ABOUT OUR REALLY LARGE CUSTOMERS, YOU KNOW, MOST OF THEIR BILL IS POWER SUPPLY COSTS.

BUT, BUT EVEN IN THE, IN THE RESIDENTIAL CUSTOMERS, RIGHT.

I HAD SHOWED YOU THE SLIDE WHERE I THINK THE AVERAGE, THE, THE BILL FOR THE TYPICAL CUSTOMER IS $119, AND THE BASE RATE INCREASE FOR 2% WAS LIKE A DOLLAR 15.

SO BASE RATES ARE ONLY ABOUT HALF THE BILL.

[02:15:01]

ANY OTHER QUESTIONS? WELL, THANK YOU.

YOU BET.

THANK YOU, LISA MARTIN.

[14. Staff briefing on the Second Quarter Operations Report by Lisa Martin, Deputy General Manager and Chief Operating Officer.]

GOOD EVENING AGAIN.

LISA MARTIN AUSTIN ENERGY'S CHIEF OPERATING OFFICER.

I'M HERE TONIGHT TO PRESENT TO YOU THE OPERATIONS QUARTERLY UPDATE FOR THE PERIOD OF JANUARY, FEBRUARY, AND MARCH OF 2024.

GREAT.

NEXT SLIDE, PLEASE.

WE'LL REVIEW OUR STANDARD AGENDA TONIGHT.

AND I'LL PRETTY QUICKLY GO THROUGH ALL OF THESE DETAILS, BUT IN EXECUTIVE SUMMARY, OUR RENEWABLE PRODUCTION AND CARBON FREE PRODUCTIONS AS A PERCENTAGE OF LOAD IN Q2, WE'RE ON TARGET.

YOU WILL SEE THAT SOME OF OUR GENERATORS DID DO, UH, HAVE SOME MAINTENANCE WORK, UM, DURING THIS QUARTER, WHICH IS TYPICAL FOR THIS TIME OF YEAR.

AND OUR RELIABILITY PERFORMANCE, UH, TRENDS ARE STILL STABILIZING.

WE'LL START WITH ENVIRONMENTAL PERFORMANCE.

SO LOOKING AT THE MONTHLY DATA FOR Q2, AUSTIN ER'S GENERATION WAS 75% CARBON FREE AS A PERCENTAGE OF LOAD.

THAT'S 50% RENEWABLES AND 25% NUCLEAR.

THIS COMES IN SLIGHTLY LESS THAN LAST YEAR'S Q2, WHICH WAS ABOUT 82% CARBON FREE.

IT'S AN UPTICK FROM LAST QUARTER, WHICH WAS 70% CARBON FREE.

YOU'LL NOTICE IN PARTICULAR THAT JANUARY WAS LOW THIS YEAR, AND THAT'S RELATED TO A COUPLE OF DIFFERENT FACTORS.

FIRST OF ALL, STP HAD AN OUTAGE IN JANUARY, SO THE YELLOW BAR IS SMALLER THAN ONE WOULD ANTICIPATE, AND THEN RENEWABLES, THE ORANGE BAR WERE ALSO LOWER.

WE SAW INCREASED NEGATIVE PRICING IN JANUARY, WHICH OFTEN LEADS TO CURTAILMENT.

WE SAW THAT MOSTLY WITH WIND, BUT ALSO SOME WITH SOLAR.

AND OF COURSE, EXCEPT FOR SOME FOUR REALLY COLD DAYS OVER THE MARTIN LUTHER KING JR DAY WEEKEND, UM, WE LARGELY SAW A SUNNY LOW LOAD MONTH.

SO A LOT OF OVERSUPPLY AND A LOT OF CURTAILMENTS.

THOSE BAR CHARTS FROM THE PREVIOUS SLIDE ARE REFLECTED IN THE JAGGED LINE HERE.

AND THE SMOOTH LINE IS THE ROLLING 12 MONTH AVERAGE DATA FOR Q2 ON A ROLLING 12 MONTH BASIS, THE AVERAGE WAS 68%.

I, UM, I WAS JUST WONDERING, UM, I UNDERSTAND YOU PROBABLY DON'T HAVE IT MEMORIZED, BUT IN TERMS OF THOSE CURTAILMENTS, COULD WE GET SOME DATA ON THAT, LIKE, YOU KNOW, I DON'T KNOW, NUMBER OF MEGAWATT HOURS OR, YOU KNOW, THAT, THAT WERE CURTER CURTAILED, YOU KNOW, MAYBE BY MONTH OVER THE PAST COUPLE YEARS, SOMETHING LIKE THAT.

WOULD THAT KIND OF DATA BE SOMETHING YOU COULD SHARE WITH US? YOU WANT NUMBERS OF MEGAWATT HOURS CURTAILED BY MONTH? IS THAT WHAT YOU JUST ASKED FOR? Y YEAH, I'M, I MEAN, I'M JUST, I DON'T WANNA MAKE A BUNCH OF WORK, BUT I THINK IT WOULD BE HELPFUL FOR US TO GET A BETTER UNDERSTANDING OF THOSE CURTAILMENTS SINCE IT SEEMS LIKE IT IS, WE ARE SEEING THEM MORE AND MORE.

LET ME GET WITH THE TEAM TO SEE WHAT KIND OF DATA WE CAN PULL.

YOU MEAN FOR AUSTIN? YEAH.

ENERGY PPAS.

YEAH, FOR AUSTIN ENERGY'S RESOURCES.

I MEAN, IDEALLY IT WOULD BE NICE TO SEE THOSE BY LOCATION AS WELL.

YEAH, WE'LL LOOK INTO IT.

UM, ALL RIGHT, UH, NEXT SLIDE.

WE'LL START MOVING INTO RELIABILITY PERFORMANCE.

ONE MORE PLEASE.

EQUATES TO 1.9% OF THE TOTAL NETWORK.

AND SO LAST QUARTER I PRESENTED TO YOU SOME ELECTRIC VEHICLE CHARGING STATION OPERATIONS, AND SO WE'LL CONTINUE THAT AS WE, UH, MOVE FORWARD.

SO JUST AS A REMINDER, AUSTIN ENERGY'S BEEN ACTIVELY ENGAGED WITH CHARGEPOINT AS WELL AS SMART CHARGE AMERICA TO PERFORM REACTIVE AND QUARTERLY PREVENTATIVE MAINTENANCE.

UM, AS YOU KNOW, WE ARE PHASING IN A NEW UPDATED RATE OF 9 CENTS PER KILOWATT HOUR.

UM, AND THAT IS PHASING OUT THE FORMER PLUGIN EVERYWHERE SUBSCRIPTION PLAN.

WE DID TALK ABOUT THAT IN FEBRUARY AS WELL.

UM, AND THAT, UH, PHASING IS, UM, ON TARGET TO BE COMPLETE IN JULY OF 2024.

UM, TURNING TOWARDS THE PIE CHART, THIS SHOWS A SNAPSHOT OF THE CHARGING STATION NETWORK HEALTH AS OF, UH, MAY 7TH, SO ONE WEEK AGO, 10, UH, ONE WEEK AGO TUESDAY.

UM, SO CHARGEPOINT, UH, RESTRUCTURED THEIR FAULT DETECTION AND STATION STATUS TO INCLUDE BRAKES AND CONNECTIVITY WITH A WIFI OR CELL CELL SIGNAL, AS WELL AS ACTUAL STATION FAULTS THAT MAKE THEM OUT OF SERVICE.

SO, UM, AS OF MAY 7TH, THERE WERE 30 PORTS THAT WERE REPORTED AS FAULTED.

THAT

[02:20:01]

THAT'S THE YELLOW PIE SLICE, THE GRAY PIE SLICE, 16.6.

THOSE ARE THE PORTS THAT REPORTED AN UNREACHABLE STATUS, UH, WHICH SIMPLY MEANT THAT WITHIN THE PAST 24 HOURS OF THE TIME, WE TOOK THE SNAPSHOT THAT EITHER THERE WAS A WIFI OR CELLULAR ISSUE AT SOME POINT IN TIME, BUT THEY WERE UP AND RUNNING AT THE TIME OF THE, UM, OF THE SNAPSHOT.

AND, UH, 81.5 WERE REPORTING AS AVAILABLE.

SO IN TOTAL, THE ORANGE AND THE GRAY PIE SLICES SHOW 98.1% AVAILABLE.

UM, THIS NETWORK HEALTH IS COVERING BOTH THE, UH, LEVEL TWO CHARGERS AND THE DC FAST CHARGERS.

UM, LAST QUARTER YOU ASKED ME A LITTLE BIT ABOUT THE, UH, DC FAST CHARGERS CHAIR, TUTTLE, AND SO THE FINAL BULLET HERE IS ANOTHER VIEW OF HOW THEY'RE PERFORMING, UM, 93.3% UPTIME OF THOSE DC FAST CHARGERS OVER THE LAST QUARTER.

SO THAT LOOKS LIKE PROGRESS, BUT WHAT'S THE TRAJECTORY TO GET TO 99.9 ON THE DC FAST CHARGERS? RICHARD, DO YOU WANNA COME ANSWER THAT QUESTION? SURE.

UH, RICHARD GENESEE, VICE PRESIDENT OF CUSTOMER ENERGY SOLUTIONS, I DON'T KNOW IF WE HAVE A DEFINITIVE, LIKE WE WILL BE AT 99% BUY, BUT I CAN TELL YOU THAT, YOU KNOW, WE MEET WITH CHARGEPOINT ON THIS VERY POINT WEEKLY, AND WE ARE SEEING SUBSTANTIAL, UH, IMPROVEMENT WEEK OVER WEEK.

SO I CAN'T GIVE YOU AN EXACT TIME OF WHEN WE EXPECT IT TO BE 99%, BUT WE HAVE SEEN THAT CONTINUED IMPROVEMENT OVER TIME.

AND, YOU KNOW, UH, THIS IS SOMETHING THAT, UH, WE'RE VERY, VERY FOCUSED ON, UM, ON A GOING FORWARD BASIS.

SO JOSH, WHAT'S YOUR EXPERIENCE? I MEAN, THERE'S, THERE'S TWO JUST DOWN THE STREET THAT, THAT ARE, THAT ARE BROKEN .

UM, UH, YEAH, I MEAN, I WAS JUST GONNA, IS THERE, HAVE THE LEVEL, LEVEL TWO CHARGERS IN PARTICULAR, JUST HAVE THEY, UM, JUST BROKEN DOWN FASTER THAN ORIGINALLY EXPECTED? OR LIKE, UM, HAVE THEY JUST, WERE THEY NOT AS DURABLE THE FIRST ONES THAT, THAT THAT CAME OUT? OR LIKE, WHAT, WHAT'S THE, WHAT'S LED TO A, A, A FAIR NUMBER OF 'EM BEING UNAVAILABLE? YEAH, I THINK THERE'S A COUPLE OF THINGS THAT ARE HAPPENING SIMULTANEOUSLY HERE THAT LEADS TO THIS OUTCOME.

ONE IS THAT, AS YOU KNOW, THE WHOLE, THE WAY CHARGEPOINT MEASURES, UH, THE, UH, UH, CHARGERS IN TERMS OF THEIR, UH, OPERATION THAT HAS, THAT HAS CHANGED.

AND WE ARE ALSO MOVING TO A NEW STANDARD IN TERMS OF THE NEVY STANDARD AND CHARGEPOINT, UM, IS WORKING ON THAT TRANSITION.

SO THERE'S BEEN CHALLENGES IN GOING FROM JUST MEASURING THE AMOUNT OF CHARGERS THAT ARE UP AND RUNNING TO OVERALL UPTIME, UH, IN TERMS OF THE 97% UPTIME THAT WE'RE, WE'RE MOVING TOWARDS.

UM, WE ARE GETTING BETTER AND BETTER AT THAT.

AND, UM, UH, YOU KNOW, I THINK WE ALSO HAVE A, UH, SMART CHARGE AMERICA, UH, THE, UH, MAINTENANCE CONTRACT THAT, UH, LISA REFERENCED.

WE HAVE THAT IN OPERATION AS WELL.

SO THE NET IS OF THE 1600 LEVEL TWOS AND THE 30, UH, DC FAST CHARGERS IN THE NETWORK, WE ARE VISITING EVERY CHARGER AT LEAST ONCE EVERY THREE MONTHS, UH, TO MAKE SURE THAT IT IS IN FACT UP AND RUNNING.

SO WE, WE ARE GETTING BETTER AT BEING ABLE TO HAVE, ON A ALMOST IMMEDIATE BASIS, NOT ONLY IS THE CHARGER UP AND RUNNING, BUT WHEN WAS THE LAST TIME THAT IT WAS NOT UP AND RUNNING SO THAT, YOU KNOW, UM, UH, WE'RE ALWAYS GONNA HAVE BETTER, MORE ACCURATE DATA WHEN SOMEONE SAYS, OH, THAT CHARGER, I THINK IT'S BEEN OUT FOR YEARS NOW, WE CAN TELL YOU, OR WE'RE GETTING TO THE POINT WHERE INCREASINGLY WE'LL BE ABLE TO SAY WITH MORE PRECISION HOW LONG IT'S BEEN OUT, WHEN IT'S BEEN OUT, UM, AS, AS WELL AS A REASONABLE PRO PROJECTION THAT IT WILL BE SERVICED WITHIN THE NEXT THREE MONTHS.

IS IT, UM, TO REPORT, IS IT STILL BEST TO REPORT THAT TO CHARGEPOINT OR TO Y'ALL, THE ONES THAT ARE OUT? LIKE WHAT'S THE BE THERE'S, THERE'S A COUPLE OF DIFFERENT WAYS.

I'D SAY, UH, REPORTING THEM TO US IS, IS GOOD.

REPORTING THEM TO CHARGEPOINT, YOU CAN REPORT CHARGERS BEING OUT ON THE CHARGEPOINT APP.

UM, AND ALSO YOU CAN CALL, YOU KNOW, YOU CAN, UH, SO THERE'S, WE, WE TRY TO MAKE IT EASY FOR CUSTOMERS TO BE ABLE TO HAVE MULTIPLE WAYS IN WHICH THEY CAN REPORT CHARGERS BEING OUT.

SO TRY TO BE FLEXIBLE ON THAT.

EVERYWHERE NETWORK IS AVERAGING OVER 30,000 CHARGING SESSIONS PER MONTH.

THANK YOU, RICHARD.

NEXT SLIDE, A FEW MORE, UH, CHARGING STATION OPERATION STATS FOR YOU.

SO THE PLUGIN

[02:25:01]

THE PEAK USAGE OCCURS BETWEEN 9:00 AM AND 1:00 PM.

THE AVERAGE CHARGING TIME IS THE BAR CHART, BAR GRAPH ON THE BOTTOM IS TWO HOURS AND 54 MINUTES WITH THE AVERAGE PLUGGED IN TIME OR AVERAGE SESSION LENGTH OF FIVE HOURS AND 15 MINUTES.

SO MOVING TO GENERATOR AVAILABILITY AS A REMINDER, UM, THE CENTER TARGET IS COMMERCIAL AVAILABILITY SUMMER TARGET, UM, WHICH IS NOT THE, UH, QUARTER THAT I'M REPORTING ON TODAY, BUT JUST GIVES YOU A POINT FOR REFERENCE.

SO THE AVAILABILITY, UM, THE ACTUAL AVAILABILITY FOR BOTH, FOR THE SANDHILL COMBINED CYCLE, FAYETTE POWER PROJECT AND SOUTH TEXAS PROJECTS ARE SHOWN THERE.

UM, BOTH STP AND SANDHILL HAD PLANNED MAINTENANCE DURING THIS QUARTER, AND THEN STP DID HAVE A D RATE AND AN OUTAGE IN JANUARY AS WELL.

SO I NOTICED ON THE ERCOT APP TODAY, THAT LOOKS LIKE TWO OF THE FOUR REACTORS ARE, ARE OFFLINE.

UH, WHAT DO YOU THINK? IT'LL COME BACK UP ONCE IT'S AND STP MM-HMM, , WE ARE, UH, MONITORING THAT, UH, MOMENT BY MOMENT.

IT, IT SHOULD BE UP HERE IN THE NEXT CO MAY 21ST IS THE NEW MAY, MAY 21ST.

OH, THANK YOU.

MAY 21ST IS THE NEW, IT'S A FUEL CYCLE RIGHT NOW.

IT'S MAINTENANCE, JUST PLANNED MAINTENANCE.

IT'S OUT FOR FUEL, FOR FUELING CYCLE OR JUST FOR PLANNED MAINTENANCE.

ALL RIGHT.

NEXT, SO I KNOW YOU'RE, YOU'RE NOT SHOWING THE, UM, THE DECKER THERE AND I KNOW THAT'S JUST, UM, PEAKERS, THE PEAKERS, BUT DO YOU, DO YOU GENERALLY HAVE A, DO YOU HAVE A, A GOAL FOR THOSE AS WELL, OR? YEAH, SO I DO NOT NORMALLY SHOW THE PEAKERS ON THAT SLIDE EITHER AT SANDHILL OR DECKER.

OKAY, GOT IT.

UM, YOU KNOW, GENERALLY THEY PRETTY HIGH AVAILABILITY.

THEY'RE NOT USED NEARLY AS OFTEN.

ALL RIGHT.

UM, SO A LOT OF DATA ON THIS SLIDE, BUT YOU'LL BE FAMILIAR WITH IT.

UM, SO STARTING IN THE UPPER LEFT, OUR FUEL COST METRICS CONTINUE TO SHOW SIGNIFICANT USE OF CARBON FREE SOURCES.

MOVING DOWN, YOU'LL SEE A INCREASING TREND IN THE SIG IN THE SYSTEM PEAK WITH A SIGNIFICANT JUMP FROM 2023 TO 2024.

THE QUARTERLY PEAK FROM JANUARY TO MARCH IN 2024 WAS 2,703 MEGAWATTS, WHICH OCCURRED DURING THAT POLAR VORTEX, THOSE FOUR DAYS OVER THE MLK JUNIOR WEEKEND IN JANUARY.

THAT 2,700 VALUE APPROXIMATELY IS SIGNIFICANT.

IT'S AN ALL TIME WINTER PEAK RECORD FOR AUSTIN ENERGY, AND IT'S CLOSE TO WHAT OUR SUMMER PEAK WAS JUST A FEW YEARS AGO.

UM, OTHER THAN THOSE VERY COLD FOUR DAYS IN JANUARY, WE HAD WHAT I WOULD CALL AN UNSEASONABLY WARM QUARTER.

THE BAR CHART IN THE TOP RIGHT SHOWS GENERATION FOR THE QUARTER THAT TOTALS TO ABOUT 3.3 MILLION MEGAWATT HOURS AND, UH, IS SLIGHTLY HIGHER THAN CONSUMPTION, WHICH WAS 3.1 MILLION MEGAWATT HOURS.

THIS CONSUMPTION SHOWN FOR Q2 IS SIMILAR TO WHAT WE SAW IN Q1.

AND THEN FINALLY YOU'LL SEE IN THE BOTTOM RIGHT PIE CHART, IT SHOWS THE 75% CARBON FREE POWER GENERATION AS A PERCENTAGE OF LOAD, AND AGAIN, THE 50% RENEWABLE, 25% NUCLEAR, THE SAME VALUES WE SAW IN AN EARLIER SLIDE.

LENDS, UH, LENDS ITSELF TO THE DOWNWARD TRENDS WE SAW IN THE PAST SLIDE.

RIGHT, SO THIS SLIDE IS SHOWS OUR DISTRIBUTION RELIABILITY METRICS.

OUR TEAM ENHANCED THE SLIDE FROM THE COLORFUL BAR CHART THAT YOU'VE, YOU'RE PROBABLY USED TO SEEING, UH, TO PROVIDE THAT INFORMATION AS WELL AS, UH, COMPARISON TO THE TEXAS AVERAGE.

SO LET ME ORIENT YOU TO THE SLIDE.

THE ORANGE BARS SHOW OUR ROLLING 12 MONTH AVERAGE ENDING, UH, Q2, FISCAL YEAR 24, AND THE GRAY BARS SHOW THE STATEWIDE AVERAGE FOR CALENDAR YEAR 22, WHICH IS THE LATEST DATA AVAILABLE FROM THE ENERGY INFORMATION ADMINISTRATION.

THE GRAPHS BELOW SHOW THE DATA PREVIOUSLY PROVIDED IN THOSE BAR CHARTS, AND THEY PROVIDE AN EASIER WAY TO VIEW THE TRENDS.

SO LOOKING FROM LEFT TO RIGHT ON THE FAR LEFT, WE HAVE THE AVERAGE NUMBER OF INTERRUPTIONS IN A YEAR PER CUSTOMER.

THAT'S THE SAFETY NUMBER.

THE MIDDLE SHOWS THE AVERAGE OUTAGE DURATION PER CUSTOMER SYSTEM WIDE.

THAT'S THE SADIE NUMBER, AND THAT'S SHOWN IN MINUTES.

AND THEN TO THE RIGHT, WE HAVE THE AVERAGE OUTAGE DURATION FOR AFFECTED CUSTOMERS.

THAT'S THE KATY METRIC.

IT'S ALSO SHOWN IN MINUTE UH, MINUTES.

AND AS A REMINDER, WE WANT THESE METRICS TO TREND DOWN.

A LOWER NUMBER IS BETTER, AND YOU CAN SEE THAT IS CONTINUING TO HAPPEN.

ALL RIGHT, NEXT SLIDE.

WE'LL WRAP UP WITH AN UPDATE ON OUR INITIATIVES ASSOCIATED WITH OUR GRID RESILIENCE STRATEGIC GOAL.

ONE OF THE FIRST INITIATIVES IS IMPROVING THE DISTRIBUTION SYSTEM RELIABILITY.

THIS EFFORT

[02:30:01]

UM, AS YOU KNOW, WITH THE DISTRIBUTION SYSTEM, WE FOCUS ON OUR, UH, FEEDERS THAT HAVE BEEN, UH, HISTORICALLY IMPACTED THE MOST.

WE CALL THOSE OUR UNDERPERFORMING FEEDERS.

AND THEN ALSO, UM, THOSE THAT ARE MOST SUSCEPTIBLE TO THE WILDFIRE RISK.

WE HAVE A SUBSET OF THOSE FEEDERS THAT WE'RE WORKING ON DOING END-TO-END, UH, HARDENING, UM, TO, AND WE ARE WORKING ON 25 OF THEM.

THERE'S ABOUT EIGHT STEPS FROM END-TO-END TO GET A, A CIRCUIT FULLY HARDENED.

UM, AND WE HAVE TWO OF THOSE CIRCUITS THAT ARE COMPLETED AND THE OTHER 23 ARE IN VARIOUS STATES OF COMPLETION.

UM, OUR OVERHEAD HARDENING AND UNDERGROUNDING FEASIBILITY STUDIES KICKED OFF IN FEBRUARY OF 2022, UH, EXCUSE ME, FEBRUARY OF 2024.

AND WE HAVE, UM, ESTIMATED COMPLETION IN DECEMBER OF THIS YEAR.

UM, WE DID SUBMIT AN APPLICATION FOR THE DEPARTMENT OF ENERGY GRIP 2.0 GRANT IN APRIL OF 2024.

WE SUBMITTED A CONCEPT PAPER, GOT FAVORABLE FEEDBACK, AND THEN WENT AHEAD AND SUBMITTED THE APPLICATION.

UM, WE ARE ANTICIPATING NOTIFICATIONS OF THE AWARDEES IN SUMMER OF THIS YEAR.

AND THEN OUR PANO AI EARLY WILDFIRE DETECTION PROJECT, WHICH SUPPORTS FEEDER REMEDIATION IS MAKING GOOD PROGRESS IN TERMS OF THE INSTALLATION.

I'LL SHOW THAT ON THE NEXT SLIDE.

BUT BEFORE I DO THAT, I WANNA TALK ABOUT TWO OTHER INITIATIVES UNDER GRID RESILIENCE.

UM, ONE IS IMPROVING OUR UNDERGROUND NETWORK MODELING, WHICH IMPROVES OUR VISIBILITY INTO THE DOWNTOWN NETWORK MODEL USING OUR GIS AND OUR ADVANCED DISTRIBUTION MANAGEMENT SYSTEM.

WE'RE DOING A PHASED APPROACH HERE.

PHASE ONE IS COMPLETE.

PHASE TWO IS UNDERWAY, UM, AFTER WE DO A GIS UPGRADE LATER THIS SUMMER.

AND THEN OUR RAZ PROGRAM, RESILIENCY AS A SERVICE, UM, CONTINUES TO MAKE PROGRESS, UH, BIT BY BIT.

UM, ALL RIGHT.

AND THEN THE NEXT SLIDE.

THIS, UH, CHART SHOWS, UH, THE AUSTIN ENERGY SERVICE TERRITORY IN THE RED OUTLINE, AND THEN YOU'LL SEE A SERIES OF BUBBLES.

THE, UH, CENTER OF EACH BUBBLE SHOWS A TRIANGLE THAT'S THE LOCATION OF ONE OF THE PANO AI CAMERAS.

THEY HAVE A 360 DEGREE PANORAMIC VIEW LOOKING FOR, UH, DE DETECT FOR SMOKE, UM, TO DETECT, UH, FIRES.

UM, THE GREEN BUBBLES REPRESENT THE CAMERAS THAT ARE LIVE.

WE HAVE STARTED TO RECEIVE, UH, DATA.

WE HAVE STARTED TO IDENTIFY, UM, SMOKE AND AND NOTIFY THE APPROPRIATE AUTHORITIES.

UM, AND WE EVEN HAD OUR FIRST TRIANGULATED EVENT, MEANING TWO CAMERAS SAW THE SAME, UH, SMOKE AND PINPOINTED IT USING THEIR VARIOUS ANGLES AND DEGREES OF RADIUS.

UM, THE OTHER BUBBLE COLORED CIRCLES, UH, REPRESENT THE REMAINING CAMERAS THAT ARE IN VARIOUS DEGREES OF INSTALLATION, BUT WE'LL, WE CONTINUE, CONTINUE TO SEE PROGRESS MONTH OVER MONTH.

AND THEN AS WE WRAP UP, I JUST WANNA HIGHLIGHT THAT AUSTIN ENERGY, UM, PUBLISHED ANOTHER 21 COMPLETED ACTION ITEMS FROM THE WINTER STORM.

MARA AFTER ACTION REPORT, THAT BRINGS US TO ABOUT 75% COMPLETION FROM THE APPROXIMATELY 80 ACTION ITEMS THAT WE IDENTIFIED.

DOES ANYONE HAVE ANY QUESTIONS FOR ME? ANY QUESTIONS ONLINE? ALL RIGHT, THANK YOU VERY MUCH.

THANK YOU, LISA.

SO ACTUALLY, AREN'T YOU UP FOR NUMBER 15 ALSO OR DID WE REALLY COVER THAT? WE COVERED IT.

WE COVERED THE NOTES, CORRECT.

WELL WITH THAT THEN WE'RE AT 16 DISCUSSION ITEMS REPORT REGARDING CITY COUNCIL ACTIONS.

[16. Discussion of report regarding City Council action on items previously reviewed by the EUC.]

I DON'T THINK WE HAVE ANYTHING TO DO WITH THAT ONE RIGHT NOW.

FUTURE AGENDA ITEMS. RANDY, YOU TALKED ABOUT CONTINUING WITH THIS.

[FUTURE AGENDA ITEMS]

WE'VE GOT THE WORKSHOPS.

WHAT OTHER ITEMS IN THE FUTURE COULDN'T WE TALK ABOUT A CAP REVIEW IN, IN JUNE? I BELIEVE, I BELIEVE THE INTENT WAS TAKE THAT UP IN JUNE, SO THAT THAT'LL BE ON THE AGENDA, CORRECT.

ROBERT? MY MIC STOPPED.

OH, THERE WE GO.

UM, YES, WE'RE, WE'RE WORKING ON FINALIZING THAT AGENDA, BUT IT DOES LOOK LIKE WE'LL BE DOING CAP NEXT MONTH.

AND, AND TO BE CLEAR, THE, UH, WE'LL BE TALKING ABOUT, UH, BOTH THE ENROLL ENROLLMENT NUMBERS AND PROCEDURES, UH, AS WELL AS THE CAP PROGRAM ALSO INCLUDE THE CAP PROGRAM.

DOES THAT INCLUDE WEATHER, THE WEATHERIZATION ASSISTANCE, THE WEATHER, UM, THE CAP? YES, IT WILL BE INCLUDED.

ANYTHING ELSE? YEAH, UM, I DON'T KNOW IF IT'LL BE APPROPRIATE FOR JUNE OR MAYBE JULY TO GET AN UPDATE FOR THE COMMISSION ON THE SOLAR STANDARD OFFER.

[02:35:05]

IT SEEMS LIKE THINGS ARE PERHAPS COMING TOGETHER ON THAT AND IT MIGHT BE GOOD TO DO A BRIEF UPDATE.

AMY, I THINK YOU HAD MENTIONED ABOUT THAT.

ISN'T THAT GOING TO THE OVERSIGHT COMMITTEE AND THAT WAS STORAGE? YEAH, I THINK TWO SEPARATE THINGS.

UM, BUT YEAH, WE'LL, WE'LL GET WITH TIM AND FIGURE OUT HIS TIMING ON .

YEAH, I MEAN, I KNOW IT'S, YOU KNOW, ON TARGET TO LAUNCH IN OCTOBER, BUT IT SEEMS LIKE A LOT OF THE MATERIAL ISSUES ARE MAYBE GETTING WORKED OUT, SO YEAH.

ANYTHING ELSE WITH THAT? THAT'S ADJOURN.