Sep 17, 2024 Resource Management

[00:00:02]

OH,

[CALL MEETING TO ORDER]

AT LEAST I THINK IT IS.

SAYS IT'S ON, IT NEEDS TO COME CLOSER.

ALRIGHT.

I CALL THIS MEETING TO ORDER AT 6:07 PM OF THE RESOURCE MANAGEMENT COMMISSION.

YOU WANNA MOVE IT THROUGH YOUR MOUTH? LITTLE BIT.

JUST POINT, POINT IT UP.

THERE YOU GO.

Y'ALL ARE KILLING ME.

ALRIGHT.

UH, BES IS BETTER THAN KILLING PAUL TODAY.

UH, ONE MORE TIME.

I CALL THIS MEETING TO ORDER AT 6:07 PM WE'LL START BY TAKING ROLL CALL.

UH, COMMISSIONER STONE IS HERE.

ROBINS HERE.

DAVIS.

HERE, FARMER.

HERE.

GARY LUKI.

HERE.

TIS TI SCHWARTZ.

HERE.

SILVERSTEIN HERE.

BEAUTIFUL.

WE HAVE A QUORUM.

A UH, SO WE'LL BEGIN

[PUBLIC COMMUNICATION: GENERAL]

UH, I HAVE THREE PEOPLE ON THE LIST HERE TO SPEAK ON A FEW ITEMS. UH, FIRST UP IS AL BRADEN HERE TO SPEAK ON ITEM NUMBER SIX.

THAT LOOKS HANDY.

OKAY.

UH, GOOD EVENING COMMISSIONERS AND AUSTIN ENERGY STAFF.

I'M AL BRADEN, A DISTRICT SEVEN VOTER AND COMMUNITY SOLAR CUSTOMER.

I PHOTOGRAPHED THE RIBBON CUTTING FOR THE GROUNDBREAKING LOMA COMMUNITY SOLAR FARM IN 2018 AND SIGNED UP IMMEDIATELY.

I'VE BEEN AN ENTHUSIASTIC SUPPORTER EVER SINCE.

WITH THE RISE IN THE PSA OVER THE YEARS, MY SOLAR ENERGY NOW SAVES ME MONEY.

AND I'M EVEN HAPPIER THAT CAP CUSTOMERS CAN ACCESS SOLAR AT EVEN MORE AFFORDABLE RATES.

SO I EAGERLY AWAITED FOR MORE COMMUNITY SOLAR, SO MORE FOLKS LIKE ME COULD ENJOY THOSE BENEFITS.

AND I WAITED AND I WAITED.

AND IN THOSE SIX YEARS, AUSTIN ENERGY BARELY MOVED THE NEEDLE.

WE NEED VASTLY MORE SOLAR IN OUR LOAD ZONE.

EVERY MEGAWATT GENERATED IN AUSTIN STAYS IN AUSTIN AND AVOIDS ALL THE AIRCO TRANSMISSION AND COST AND CONSTRAINTS.

THE SOLAR STANDARD OFFER IS A GREAT PLAN.

IN FACT, I HOPE IT REACHES WELL BEYOND ITS MODEST TWO MIL, TWO MEGAWATT, 20 MEGAWATT BENCHMARK.

WE NEED OVER 200 MEGAWATTS OF AUSTIN SUNSHINE TO MAKE A DENT IN OUR GENERATION PLAN.

THE OFFER PRICE IS CRITICAL.

IF ATTRACTIVE, WE'LL GET DEVELOPER ENGAGEMENT AND ABUNDANT SOLAR.

IF IT IS LOW, WE'LL JUST DIE ON THE VINE.

BUT IT MUST ATTRACT TWO PARTIES, THE DEVELOPER AND THE SITE HOST.

THE VALUE OF SOLAR PAYS ONLY THE HOMEOWNER.

NO WORRIES ABOUT LEASING THE ROOF.

FOR THE STANDARD OFFER TO WORK, WE HAVE TO PAY THE DEVELOPER FOR INSTALLING THE SYSTEM AND THE HOST FOR LEASING THE ROOF.

THIS IMPORTANT EXTRA PRICE HAS TO BE RIGHT FOR THE PROGRAM TO SCALE.

I BELIEVE AUSTIN ENERGY'S STARTING OFFER BASED ON 2021.

MARKET PRICES IS TOO LOW.

2021 VERSUS 2022.

23 AREN'T JUST PRICE FLUCTUATIONS IN THE ERCOT MARKET.

THEY'RE ACTUALLY TWO VERY DIFFERENT MARKETS SEPARATED BY WINTER STORM URI UNTIL 2021.

ERCOT WAS JUST HELD IN ON HAVING THE LOWEST PRICES POSSIBLE.

URI WAS A MAJOR WAKE UP CALL.

INCREASED RESERVES AND ANCILLARY SERVICES RATE INCREASES, COVERING UTILITY LOSSES, INCREASED MAINTENANCE FOR GAS AND COAL PLANTS, FIRMING REQUIREMENTS AND REGULATORY CHANGES, INCREASING COST FOR TRANSMISSION AND STATE FUNDING OF ADDITIONAL GAS PLANTS.

ALL OF THOSE FACTORS COMBINED FOR HUGE INCREASES.

YOU JUST WON'T SEE THOSE 2021 PRICES AGAIN.

2022 AND 2023 REFLECT THE WORLD WE NOW LIVE IN.

I WOULD AVERAGE THOSE TWO YEARS FOR THE STANDARD OFFER STARTING POINT, BUT THE COMMISSION HAS A RESOLUTION BEFORE IT TONIGHT FOR THE APPROVED VALUE OF SOLAR, THIS WOULD BE A BIG IMPROVEMENT OVER THE HISTORIC 2021 PRICES AND WOULD HELP THE PROGRAM GROW MORE QUICKLY.

AT 9.90 CENTS VALUE OF SOLAR BEATS, AUSTIN ENERGY IS PROPOSED 7.60 CENTS STANDARD OFFER.

IT'S NOT UP TO THE 13 CENTS THAT MY AVERAGING WOULD SUGGEST.

THOSE ARE TODAY'S REAL AVOIDED COST, BUT IT WILL GO A LONG WAY TO GETTING THE PROGRAM LAUNCHED IF THE COMMISSION'S CONSENSUS IS FOR THE ESTABLISHED VALUE OF SOLAR.

I SAY, LET'S GO WITH IT.

I HOPE IT'S ENOUGH TO ATTRACT BOTH DEVELOPERS AND PROJECT HOSTS.

LET THE SUNSHINE ENERGETICALLY ON THIS POTENTIALLY EFFECTIVE COMMUNITY SOLAR PROGRAM.

THANK YOU VERY MUCH.

THANK YOU VERY MUCH.

WE HAVE, CAN I ASK, UH, AL YES.

MR. BRADEN, UH, WHAT ARE THE TERMS OF YOUR, UH, PURCHASE?

[00:05:01]

LAST MONTH I SAVED $2 AND 10 CENTS.

SO IT'S ABOUT A PENNY.

WHEN YOU ADD THE PSA AND THE, THE REGULAR CHARGE TOGETHER, IT'S ABOUT A 10TH OF A CENT LESS.

AND I CAN FIND YOU THOSE EXACT NUMBERS.

SO IT'S MARGINAL.

BUT WHEN I STARTED, I PAID ABOUT $25 A MONTH MORE FOR COMMUNITY SOLAR.

AND I KEPT HAVING TO EXPLAIN TO MY WIFE, THIS IS REALLY A GOOD THING.

AND NOW I CAN GO TO HER AND SAY, WE SAVED TWO BUCKS.

SO YOUR PRICE IS FIXED NOW.

IT'S FIXED HOW LONG FOR WHAT? 25 YEARS? I BELIEVE.

15.

15.

ONLY 15.

IT'S 15.

AND IT'S, AND THE ONLY PART THAT'S FIXED IS THE COMMUNITY SOLAR ADJUSTMENT REPLACES THE POWER SUPPLY ADJUSTMENT ON THE BILL.

SO THAT PORTION IS NOW FIXED FOR COMMUNITY SOLAR CUSTOMERS.

YEAH.

FOR 15 YEARS.

I FEEL LIKE WE NEED TO REMIND OUR FRIENDS FROM AUSTIN ENERGY THAT WHEN YOU PIPE IN, YOU HAVE TO GO UP THERE.

INTRODUCE YOURSELF.

NO, MR. ROBBINS.

I HAVE THAT AT MY DESK AND OR MY SEAT.

AND I'LL GIVE YOU A COPY OF IT.

I JUST DON'T HAVE IT.

I DIDN'T BRING IT WITH ME UP HERE, BUT HEY.

YEAH.

HEY, I SUPPORT THIS, BY THE WAY.

.

APPRECIATE IT.

YEAH.

SO, UM, TIM HARVEY, CUSTOMER RENEWABLE SOLUTIONS, AND YES, THE, UM, THE COMMUNITY SOLAR ADJUSTMENT REPLACES THE POWER SUPPLY ADJUSTMENT ON THE ELECTRIC BILL.

AND THE COMMUNITY SOLAR ADJUSTMENT IS FIXED FOR 15 YEARS, UM, FOR ALL CURRENT COMMUNITY SOLAR CUSTOMERS.

THANK YOU.

OKAY.

UH, NEXT UP ON, UH, UH, PUBLIC COMMENT TRACE ROADS, UH, HERE TO SPEAK ON ITEMS EIGHT AND NINE.

GOOD EVENING.

I KNOW THAT WE HAD SOME TECHNICAL DIFFICULTIES AT THE LAST MEETING, SO I, WE APPRECIATE THE SECOND OPPORTUNITY TO COMMENT ON THE ENERGY CODE.

MY NAME IS TRACY RHODES.

I'M A SENIOR POLICY ADVISOR FOR TEXAS GAS AS SERVICE, AND WE ARE HERE TO PROVIDE COMMENT ON THE CITY'S PROPOSED ADOPTION OF THE 2024 INTERNATIONAL ENERGY CONSERVATION CODE, ALSO KNOWN AS THE IECC TEXAS GAS SERVICE COMPANY.

A DIVISION OF ONE GAS IS A PROUD PROVIDER OF AFFORDABLE, RELIABLE NATURAL GAS UTILITY SERVICES TO OVER 275,000 CUSTOMERS WITHIN THE CITY OF AUSTIN AND IN THE AUSTIN METRO AREA.

TEXAS GAS SERVICE HAS BEEN AN ACTIVE PARTICIPANT IN THE CITY'S STAKEHOLDER PROCESS SINCE APRIL OF THIS YEAR.

TGS IS OPPOSED TO ELECTRIC READINESS PROVISIONS IN SECTIONS 8.45 AND RK 1 0 1 DUE TO THE POTENTIAL FOR NEGATIVE IMPACTS IMPOSED ON OUR CUSTOMERS ABILITIES TO, TO MAKE REASONABLE AND AFFORDABLE CHOICES RELATED TO BUILDING CONSTRUCTION.

SPECIFICALLY, IF APPROVED ELECTRIC READINESS WOULD REQUIRE BUILDERS TO INSTALL UNNECESSARY AND POTENTIALLY COSTLY ELECTRICAL INFRASTRUCTURE.

FOR HYPOTHETICAL FUTURE INSTALLATION OF ELECTRIC EQUIPMENT, TO BE CLEAR, THESE PROVISIONS SPECIFICALLY TARGET BUILDINGS THAT PLAN TO INCLUDE FUEL GAS INFRASTRUCTURE.

OUR CONCERN IS THAT THE INCLUSION OF THIS ADDITIONAL ELECTRICAL INFRASTRUCTURE RAISES COSTS SUCH MANDATORY REQUIREMENTS ALONE.

DO NOT GUARANTEE THAT THIS EXTRANEOUS INFRASTRUCTURE WOULD BE USED BY OR USEFUL TO THE BUILDING OPERATOR OR THE HOMEOWNER.

SUCH REQUIREMENTS DO NOT GUARANTEE USEFULNESS.

THEY DO NOT GUARANTEE EFFICIENCY GAINS OR COST SAVINGS FROM A FUTURE RETROFIT PROJECT THAT MAY NEVER ACTUALLY OCCUR.

THIS IS IMPORTANT BECAUSE THE CITY'S STATED GOAL OF THESE PROVISIONS IS THAT THEIR MANDATED COMPLIANCE WOULD PROTECT FUTURE BUILDING OPERATORS OR HOMEOWNERS FROM HYPOTHETICAL HIGHER ANTICIPATED FUTURE RETROFIT COSTS.

BECAUSE THERE ARE NO GUARANTEED EFFICIENCY GAINS, THE PROPOSED READINESS CODES ARE NOT SUITED FOR AUSTIN'S ENERGY CODE REQUIREMENTS.

IF THE GOAL IS TO PROTECT THE ABILITY OF CUSTOMERS TO TAKE ADVANTAGE OF NEW TECHNOLOGIES, FUEL CHOICE ALREADY EXISTS IN THE STATE OF TEXAS.

THE REQUIRED INSTALLATION OF EXTRANEOUS ELECTRICAL INFRASTRUCTURE IS EFFECTIVELY AN INDIRECT BAN ON NATURAL GAS.

WE RESPECTFULLY REQUEST YOUR CONSIDERATION OF THE FOLLOWING.

SHOULD THE CITY OF AUSTIN FIND THE ELECTRIC READINESS CODES USEFUL, THE CITY SHOULD ONLY CONSIDER ADOPTION OF SUCH PROVISIONS IN THE FORM OF NON-MANDATORY LANGUAGE.

THIS TREATMENT WOULD PRESERVE CUSTOMER CHOICE.

[00:10:01]

IN ADDITION TO OUR RECOMMENDATIONS, WE ALSO HAVE MANY QUESTIONS REGARDING THE CALCULATION METHODOLOGIES AND LOCAL ENERGY CODE MODELING THAT WAS CONDUCTED BY AUSTIN ENERGY AND THE CITY HOUSING DEPARTMENT.

WE ARE HAPPY TO DISCUSS ANY, ANY QUESTIONS OR CONCERNS FURTHER.

THANK YOU.

THANK YOU.

UH, VICE CHAIR ROBBINS, JUST THIS MORNING, UH, I REVIEWED THE LEGISLATIVE INTENT OF HOUSE BILL 17, WHICH YOU ARE REFERRING TO.

IT WAS, UH, IN THE LEGISLATIVE RECORD FOR MARCH 31ST, UH, 2021.

UH, AND IT BASICALLY, UH, ALLOWS, UH, THE CITY OF AUSTIN TO DO THIS.

UM, I WOULD ALSO RAISE THE CONCERN WHERE YOU'RE TALKING ABOUT, UH, COST TO CONSUMERS.

UH, THIS IS MORE TOWARDS THE RATE CASE, UH, BUT THE RATE IN THE RATE CASE THAT TEXAS GAS SERVICE, UH, HAS BEFORE THE CITY COUNCIL.

NOW, UH, I HAVE INFORMATION THAT SHOWS THAT THE BUILDERS OF A NEW GAS HOME ARE PAYING FROM THE NUMBERS.

I'VE SEEN ABOUT 2% OF WHAT THE COSTS ARE FOR NEW INFRASTRUCTURE.

AND SO IT SEEMS WELL STRANGE THAT YOU'RE ASKING US TO CONSIDER THE COST TO CONSUMERS WHEN I'M AS A GAS RATE PAYER AND PAYING MOST OF THE COSTS OF A NEW HOOKUP.

UM, THAT SAID, GETTING BACK TO THE MAIN CORE OF YOUR ISSUE, UH, I'VE SENT THE LEGISLATIVE INTENT LANGUAGE TO THE COMMISSIONERS, UH, FOR THEM TO REVIEW.

I, I THINK WE'RE IN THE CLEAR.

UM, THOSE ARE MY COMMENTS.

UH, IF YOU WANNA RESPOND, OF COURSE.

SURE.

YEAH.

I I DON'T WANNA BE HIGH HANDED ABOUT THIS.

YEAH, I, I CAN'T SPEAK TO THE RATE CASE.

I, IT'S NOT WITH IT BY WHEELHOUSE AT TGS, BUT IN TERMS OF THE LEGISLATIVE INTENT AND THE, UH, TGS BELIEVES THAT IT'S AN INDIRECT BAN ON NATURAL GAS BECAUSE THIS CODE REQUIREMENT IS, IS IN FACT WHAT IT IS, IT'S A REQUIREMENT.

SO YOU'RE REQUIRING ADDITIONAL ELECTRICAL INFRASTRUCTURE TO REQUIRE THE EVENTUAL CONVERSION TO ELECTRICAL APPLIANCES.

SO IF IT WERE A NON-MANDATORY PROVISION, WELL THAT WOULDN'T, THAT WOULDN'T BE A CONCERN.

BUT IT, IT'S BECAUSE IT REQUIRES THE EVENTUAL TRANSITION, THEN IT'S AN INDIRECT BAN ON NATURAL GAS.

IT DOES NOT REQUIRE AN EVENTUAL TRANSMISSION, I'M SORRY.

THE HOME COULD THEORETICALLY, UH, BEYOND NATURAL GAS FOR THE NEXT 200 YEARS, IT MERELY, UH, ALLOWS THE OPTION, UH, IF SOMEBODY WANTS TO CONVERT THE FIRST SPEAKER, UH, MR. BRADEN, UH, DECIDED TO CONVERT HIS EXISTING GAS, UH, WATER HEATER TO AN ELECTRIC HEAT PUMP, AND IT COST HIM IN EXCESS TO DO THAT BECAUSE HE HAD TO CONVERT, UH, HIS EXISTING ELECTRICAL PANEL.

AND IF IT WERE PRE-WIRED, WELL, IT WOULD SAVE HIM MONEY.

SO THAT'S WHAT THIS IS REALLY TRYING TO DO.

BUT, UM, THIS IS MY PERSPECTIVE AND YOU OBVIOUSLY DIFFER.

MAY I RESPOND TO YOUR COMMENT? IT'S FINE WITH ME.

NO, I, I APPRECIATE YOUR COMMENTS, COMMISSIONER.

UM, I, SO TGS, IF THE, IF THE INTENT IS NOT TO EVENTUALLY TRANSITION TO ELECTRICAL APPLIANCES, THEN I, I ASK AUSTIN AND AUSTIN ENERGY AND THE CITY TO EXPLAIN WHAT THE PURPOSE OF THIS CODE REALLY IS, THEN.

WELL, I CAN'T SPEAK FOR AUSTIN ENERGY.

UM, IT IS MY OPINION THAT THIS IS TO MAKE IT EASIER AND LESS EXPENSIVE FOR SOMEBODY WHO WANTS TO DO IT.

AND, WELL, I, I GUESS WE HAVE A DIFFERENCE OF OPINION AS TO WHETHER THAT

[00:15:01]

YEAH.

COMMISSIONER DAVIS.

YES.

IT SEEMS LIKE WE'RE, WE'RE JUMPING YOU, YOU'RE TURNED OFF.

SORRY.

IT SEEMS LIKE WE'RE JUMPING INTO ITEM NINE AND I WOULD SUGGEST THAT WE HOLD AND TABLE THIS DISCUSSION TILL THE ACTUAL ITEM COMES UP IN THE MEETING.

AND I'M, I'M FINE WITH THAT, BUT I DIDN'T WANT THE SPEAKERS FROM TEXAS GAS SERVICE, UH, TO BE CAUGHT OFF GUARD WHERE THEY COULD NOT SPEAK UP.

SO I THOUGHT I WOULD BRING IT UP NOW SO THEY HAD A CHANCE TO DEFEND THEIR POSITION.

THAT'S WHY I DID IT.

NOW.

DULY NOTED.

THANK YOU.

MOVING ON IN OUR AGENDA.

COMMISSIONER FARMER.

I NEVER SAW A HAND RAISED IN THE, HE HAD IT RAISED, BUT HE LOWERED IT.

OH, HE LOWERED IT.

COMMISSIONER FARMER, DID YOU HAVE A QUESTION? I SEE YOUR HAND RAISED NOW.

, MAYBE YOU'RE MUTED.

I WE CAN HEAR YOU.

I'M SORRY.

MY, UH, SIX, MY 6-YEAR-OLD HAD MY OTHER EARBUD IN, SO I DIDN'T WANNA JUMP ON.

AND , I SUBJECT YOU GUYS TO THAT.

UH, YEAH, I WAS, UH, JUST GONNA SAY WHAT COMMISSIONER DAVIS SAID, SO I'M ALL GOOD.

OKAY.

VERY GOOD.

MOVING ON IN THE AGENDA.

I HAVE, UH, ERIC TATE HERE ALSO TO SPEAK ON ITEMS EIGHT AND NINE.

WHY AM I NOT SEEING HANDS? ALRIGHT, ERIC TATE, WITH THAT SYNERGY, I AM, UH, MANAGER OF PUBLIC AFFAIRS IN MID TECH DIVISION.

UM, APPRECIATE YOUR TIME HERE.

ATMOS ENERGY APPRECIATES CONTINUED ENGAGEMENT WITH THE CITY OF AUSTIN AS PART OF THEIR EVALUATION OF ADOPTING THE 2024 INTERNATIONAL ENERGY CONSERVATION CODES.

ATMOS ENERGY IS THE NATION'S LARGEST PROVIDER OF NATURAL GAS ONLY UTILITY, SERVING 3.3 MILLION NATURAL GAS CUSTOMERS IN OVER 1400 COMMUNITIES IN EIGHT STATES.

GIVEN OUR BREADTH OF OUR SERVICE, TORY, AS WELL AS OUR SIGNIFICANT AND GROWING CUSTOMER BASE, WE HAVE A KEEN INTEREST IN THE DEVELOPMENT OF BUILDING CODES, WHICH SUPPORTS OUR VISION OF BEING THE NATION'S SAFEST PROVIDER OF NATURAL GAS SERVICES.

THROUGHOUT OUR DISCUSSION OVER THE PAST THREE YEARS, ATMOS ENERGY HAS ACTIVELY ENGAGED IN THE 2024 IECC CO-DEVELOPMENT PROCESS AND APPRECIATES THE OPPORTUNITY TO SHARE OUR PERSPECTIVE ON THE FINALIZED 2024 IECC WITH THE RMC.

THROUGHOUT OUR DISCUSSIONS WITH ICC AND VARIOUS BUILDING CODE STAKEHOLDERS, WE AIM TO PROMOTE BUILDING CODES THAT ARE FUEL NEUTRAL, PROVIDE COST-EFFECTIVE BENEFITS TO HOMEOWNERS AND BUILDING OWNERS, AND ASSESS EMISSIONS REDUCTION IN ENERGY SAVINGS BASED ON A FULL FUEL CYCLE ANALYSIS FROM ENERGY PRODUCTION TO CONSUMPTION.

WITH RESPECT TO THE 2024 TECHNICAL CODE AMENDMENTS, WE FIND THAT CERTAIN PROVISIONS OF THE APPEND DO NOT COMPORT WITH THE STATE OF TEXAS EXISTING LEGISLATION REQUIRING FUEL NEUTRALITY FOR THE CONSUMER ENERGY CHOICE, BUT RATHER FAVOR ELECTRIFICATION FOR ENERGY SUPPLY.

UNDER THESE IECC AMENDMENTS, WE UNDERSTAND THE CITY OF AUSTIN HAS A VARIETY OF DRIVERS BEHIND THE DECISIONS TO CONSIDER ADOPTING THE 2024 IECC CODE.

MEANINGFUL IMPROVEMENTS IN ENERGY EFFICIENCY THAT WILL AID THE CITY IN MOVING CLOSER TO ACHIEVING THE ENERGY CONSERVATION AND GREENHOUSE GAS REDUCTION GOALS CAN BE MADE WITH THE ADOPTION OF ONLY THE BASE CODE WITHOUT INCORPORATING MATERIAL FROM THE NON-MANDATORY APP DEPENDENCIES INCLUDED IN THE PROPOSED TECHNICAL CODE AMENDMENTS.

UNFORTUNATELY, THE FOLLOWING PROVISIONS DO NOT SAVE OFF NIGHTS ANY ADDITIONAL ENERGY OR EMISSIONS ABOVE AND BEYOND THOSE ACHIEVED BY IMPLEMENTING THE BASE CODE.

ONE CHAPTER SEVEN, RE RESIDENT RESIDENTIAL SOLAR READY TWO APPENDIX RE ELECTRIC VEHICLE POWER TRANSFER TRANSFER THREE APPENDIX RK ELECTRIC READINESS.

THESE AMENDMENTS INCREASE COST FOR HOMEOWNERS AND BUILDING OWNERS, AND GIVEN THE POTENTIAL LOW USAGE FOR RESIDENTS MAY REFLECT STRANDED ASSET COSTS WITH LITTLE TO NO BENEFIT.

RATHER, THESE RESIDENTIAL BUILDING FEATURES SHOULD REMAIN AT THE DISCRETION OF THE HOME BUILDER TO ALLOW THE HOMEOWNER AN EQUITABLE AND ENERGY EFFICIENT PATH WITH A GREATER AUTONOMY OVER THE DECISION ON WHAT WORKS BEST FOR THEIR NEEDS.

ATMOS ENERGY SINCERELY APPRECIATES THE CITY'S CONSIDERATION OF THESE COMMENTS, AND WE LOOK FORWARD TO CONTINUING TO ENGAGE WITH THE CITY THROUGHOUT THIS PROCESS.

THANK YOU THERE.

ANY QUESTIONS? UM, COMMISSIONER DAVIS,

[00:20:01]

I DON'T THINK THAT'S MY CALL, BUT, UH, WE HAVE IT ON THE AGENDA.

WE, WE DO HAVE AN AGENDA THAT WE SHOULD STICK TO, SO THEY'RE MORE THAN WELCOME TO STICK AROUND AND, YOU KNOW, I WILL BE COGNIZANT OF THE FACT THAT WE HAVE PEOPLE OVER THERE THAT MAY BE ABLE TO OFFER INPUT AND I MIGHT ASK THEM A QUESTION WHILE WE ARE GOING THROUGH OUR DISCUSSION ON ITEMS EIGHT AND NINE LATER.

THANK YOU.

THANK YOU VERY MUCH.

ALL RIGHTY.

SO, BEFORE WE, UH, GO ON IN THIS THING I WANT TO BRING TO THE COMMISSION'S ATTENTION, I WILL BE CHANGING UP THE ORDER A LITTLE BIT TONIGHT, AND THAT IS TO BRING STAFF DISCUSSION ITEMS AHEAD OF, UH, RESOLUTIONS THAT WE'LL BE CONSIDERING THIS EVENING, SO THAT THAT WAY THEY'RE ABLE TO SET THE TABLE FOR US A LITTLE BIT AND WE CAN HAVE A MORE FRUITFUL DISCUSSION WHEN THOSE AGENDA ITEMS COME UP.

SO WHEN THEY COME UP, I WILL SAY WITHOUT OBJECTION FROM THE COMMISSION, I'M MOVING THIS ITEM UP AND WE'LL GO FROM THERE.

DOES THAT SOUND GOOD? JUST WONDERFUL.

THAT BEING SAID, MOVING ON INTO YOUR AGENDA.

ITEM

[1. Approve the minutes of the Resource Management Commission Regular Meeting on August 20, 2024]

IN YOUR PACKETS THAT YOU RECEIVED, YOU HAVE A COPY OF THE MINUTES.

I'M ASSUMING EVERYBODY TOOK A LOT OF TIME TO REVIEW THEM.

SO MOVED.

, UH, COMMISSIONER SILVERSTEIN MOVE MOVES FOR APPROVAL.

IS THERE A SECOND? SECOND.

UH, SECONDED BY THE VICE CHAIR WITH NO OBJECTIONS.

WE'LL CONSIDER THEM ACCEPTED.

BEAUTIFUL.

MOVING ON.

ITEM NUMBER TWO IN OUR, HMM, , IT'S GONNA SLOW DOWN, DON'T WORRY ABOUT IT.

ITEM NUMBER

[2. Recommend approval issuing of capacity-based incentives to Eanes Independent School District, for installation of solar electric systems on their facilities located at 3301 Pinnacle Road, 1110 Westbank Drive, 4100 Westbank Drive, 1203 S Capital of Texas HWY NB, 6401 Cedar Street, 601 Camp Craft Road, 4100 Westbank Drive, 1314 Patterson Road, 9201 Scenic Bluff Drive, in an amount not to exceed $2,725,127.]

UH, IS THERE SOMEONE HERE TO, UH, SPEAK TO THIS ONE? HI, I'M VALERIE PAXTON, PROGRAM MANAGER FOR CUSTOMER RENEWABLE SOLUTIONS.

UM, SHALL I JUST START SPEAKING? YEP, PLEASE GO RIGHT AHEAD.

YEAH.

SO, UH, IN THE CUSTOMER RENEWABLE SOLUTIONS DEPARTMENT, WE HAVE TWO COMMERCIAL PROGRAMS. UH, THE EENS SCHOOL DISTRICT HAS APPLIED AND PREVIOUSLY BEEN, UM, APPROVED FOR SOME REBATE FUNDING ALREADY THROUGH OUR, OUR CAPACITY BASED INCENTIVE PROGRAM.

THIS PROGRAM WAS DESIGNED FOR NONPROFITS.

UM, IT PROVIDES THEM WITH AN UPFRONT, UH, CASH INCENTIVE THAT THEY GET AFTER A FINAL SUCCESSFUL FINAL INSPECTION AND COMPLETION OF THE INSTALLATION, UM, UH, TO HELP THEM OFFSET THE COST OF THE INSTALLATION.

AND, UH, UM, DO, DO, DO, DO.

YEAH.

UM, IT, WE'RE REALLY EXCITED ABOUT THIS PROGRAM.

WE'VE HELPED A LOT OF SCHOOLS, UH, INSTALL, BE ABLE TO INSTALL SOLAR ON THEIR FACILITIES THROUGH THE CAPACITY BASE INCENTIVE PROGRAM.

UM, DO YOU WANT SOME DETAILS ABOUT THE SPECIFIC RCA? YES, PLEASE.

IF YOU CAN GIVE US THE I'LL THE DIME TOUR.

OKAY.

PER PERFECT.

THANK YOU.

I HAD TO, UH, PULL IT UP AS WELL, BUT I CAN SPEAK TO IT, UH, AS I LOOK AT, AT IT WITH Y'ALL.

UM, THIS IS A, UH, SERIES OF BUILDINGS THAT E'S ISD IS, UM, PUTTING SOLAR ON.

AND PREVIOUSLY WE APPROVED A FEW, UM, INSTALLATIONS.

WHEW, SORRY.

GETTING THROUGH THE AGENDA.

I THINK I HAVE A PHOTO.

EXCUSE ME, Y'ALL, HERE WE GO.

UM, YES, HERE WE GO.

SO WE'RE LOOKING AT A TOTAL OF AGGREGATED SYSTEM SIZE OF 3.8 MEGAWATTS DC UH, AC AS WE CONSIDER IT FOR AUSTIN ENERGY AND FOR TOWARDS OUR GOALS.

THAT'S 3.162 MEGAWATTS.

UM, THIS SCHOOL SYS, UH, THE REBATES, EXCUSE ME, THE REBATES WILL COVER ABOUT 40% OF THE TOTAL COST OF THE SYSTEM.

E'S ISD IS SPENDING ABOUT 7000006.9 MILLION IN, IN PROJECT FUNDING.

AND WE ARE SUPPLEMENTING WITH OUR INCENTIVE OF 2.75, UH, 2.725 MILLION, UM, IN INCENTIVE THAT WILL BE DELIVERED PER PROJECT AS IT'S COMPLETED AND INTERCONNECTION IN INTERCONNECTED.

UM, THE PROJECT SPAN OVER SEVEN SCHOOLS,

[00:25:01]

UM, YEAH, A VARIOUS SIZING.

EACH SCHOOL IS GETTING A REBATE AT 80 CENTS PER WATT.

AS OUR REBATE PROGRAM IS DESIGNED TO TIER DOWN AS, AS MORE OF OUR PROGRAM CAPACITY IS, UM, APPLIED FOR AND THAT SOLAR SYSTEMS ARE INSTALLED.

ARE THERE FURTHER QUESTIONS ABOUT THE INCENTIVE, UM, THE RECIPIENTS OR HOW THE PROGRAM'S ADMINISTERED? YEAH.

COMMISSIONER SILVERSTEIN.

THANK YOU.

UM, I, THIS QUESTION IS NOT ABOUT THIS SPECIFIC INCENTIVE PER SE, SO MUCH AS WHEN YOU LOOK AT THE POPULATION OF SCHOOLS THAT HAVE RECEIVED SOLAR INCENTIVES.

DO ANY OF THEM GO BACK AND INSTALL BATTERIES LATER? YOU KNOW, WE HAVE HAD SOME, UH, DISCUSSIONS WHERE A ISD ASKED US A LITTLE BIT ABOUT THAT.

TO MY KNOWLEDGE, NO SCHOOLS HAVE INSTALLED BATTERIES AFTERWARDS, BUT THAT'S, YEAH, THAT'S A GREAT QUESTION.

IT WOULD BE WORTHWHILE IF Y'ALL AREN'T ALREADY DOING IT, TO TALK TO THE EMERGENCY SERVICES DEPARTMENT, BECAUSE I WOULD GUESS THAT THEY'RE LOOKING AT SCHOOLS AS EMERGENCY SHELTERS FOR WARMING, RESILIENCE, ET CETERA.

RESILIENCE CENTERS RESILIENCE.

THANK YOU.

MUCH FANCIER WORD.

AND, AND SO IT WOULD BE A GOOD IDEA TO SEE IF YOU CAN GET THEM TO PARTNER IN GETTING BATTERY INSTALLATIONS IN A BUNCH OF THESE PUBLIC FACILITIES.

THANK YOU.

THANK YOU.

COMMISSIONER ROBBINS, I'M SORRY.

VICE CHAIR ROBBINS ONE OF THESE DAYS.

I'LL GET IT RIGHT THE FIRST TIME.

I, UM, IT SEEMS LIKE EVERY MEETING, THE DISCUSSION OF BATTERIES COMES UP AND IT NEVER HAPPENS.

UH, AND I'M GONNA VOTE FOR THIS TONIGHT, BUT I'M ALMOST AS FRUSTRATED ABOUT THIS AS I WAS AT THE LAST MEETINGS.

UH, I THINK THAT SOONER THAN LATER, UH, AUSTIN ENERGY REALLY NEEDS TO BRING FORTH A PROPOSAL, UH, THAT DEALS WITH, UH, STORAGE, UH, THAT'S COUPLED WITH SOLAR, UH, REBATES.

UM, I DID HAVE A COUPLE OF QUESTIONS.

ARE YOU ABLE TO TELL ME WHAT THE REVENUE IS OF THE SISD? I DO NOT HAVE THE SISD REVENUE, UH, ON HAND, NO.

$190 MILLION.

ARE YOU ABLE TO TELL ME, DOES THE SISD HAVE THE ABILITY TO ISSUE CONSTRUCTION BONDS IN ADDITION TO ITS M AND O BONDS? I BELIEVE THAT IT DOES.

THEY DO.

SO MY QUESTION AS IS THE CASE WITH EVERY GOVERNMENT ENTITY THAT COMES BEFORE THIS COMMISSION, WHY ARE YOU COMING TO AUSTIN ENERGY CUSTOMERS TO SUPPLEMENT YOUR SPEND WHEN YOU ARE ABLE TO TAX YOUR, YOUR, YOUR USERS OF YOUR SCHOOL DISTRICT DIRECTLY? AND I UNDERSTAND YOU'RE NOT ACTUALLY WITH EENS, IT'S JUST ME GETTING MY POUND OF FLESH THAT I GET AT EVERY ONE OF THESE MEETINGS.

SO I THANK YOU FOR ENDURING THAT, THAT HAVING BEEN SAID.

IF THERE'S ANYONE HERE WHO'D LIKE TO MAKE A MOTION, WE CAN CONTINUE.

AFTER MY RANK COMMISSIONER SILVERSTEIN, I SEE A HAND, I, I MOVE TO APPROVE AND I SUPPORT YOUR RANCH, BUT I MOVE TO APPROVE NONETHELESS.

I HAVE A MOTION TO APPROVE BY COMMISSIONER SILVERSTEIN.

IS THERE A SECOND? SECOND.

SECONDED BY COMMISSIONER DAVIS.

WE'LL GO ON THE ROLL.

UH, VICE CHAIR ROBBINS RELUCTANTLY.

YES.

COMMISSIONER DAVIS.

YES.

COMMISSIONER FARMER? YES.

COMMISSIONER LUKE LUKEY.

YES.

COMMISSIONER SCHWARTZ? YES.

COMMISSIONER SILVERSTEIN? YES.

AND THE CHAIR VOTES? NO, THIS PASSES 6 1 0.

MOVING ON TO ITEM NUMBER THREE

[Items 3 & 4]

RECOMMENDED AUTHORIZING ISSUANCE OF REBATES, UH, FOR THE AUSTIN ENERGY, UH, ENERGY EFFICIENCY PROGRAM.

AND I SEE RICHARD GENESEE HAS WALKED UP TO THE STAGE.

GOOD EVENING COMMISSIONERS.

RICHARD GENESEE, VICE PRESIDENT OF CUSTOMER ENERGY SOLUTIONS FOR AUSTIN ENERGY.

UH, IF IT PLEASE THE CHAIR, I'D LIKE TO SUGGEST THAT WE ACTUALLY TAKE ITEMS TWO AND THREE AND FOUR TOGETHER, BECAUSE AS I'LL EXPLAIN, THEY'RE ESSENTIALLY THE SAME THING.

THIS COMMISSION HAS APPROVED SINCE FY 20, UH, ITEM THREE, WHICH JUST ENABLES US TO

[00:30:01]

AND THIS COMMISSION RECEIVES MONTHLY REPORTS OF EVERY, UM, INCENTIVE PAID FOR COMMERCIAL AND MULTIFAMILY IN THAT CATEGORY OF, OF, UM, OF PROJECTS.

SO EVERY YEAR WHEN OUR BUDGET IS APPROVED, WHEN THE CITY BUDGET IS APPROVED, WE COME BACK THROUGH AND ASK FOR REAUTHORIZATION OF THIS PERMISSION TO NOT HAVE TO, UM, YOU KNOW, GET, UH, INDIVIDUAL PROJECTS THAT ARE 72,000 MORE AND MORE, UH, THROUGH COUNCIL.

AND THIS IS IMPORTANT BECAUSE IT EXPEDITES PAYMENT OF THOSE INCENTIVES TO THE CONTRACTORS WORKING ON THOSE, THOSE PROJECTS.

SO, UH, THIS COMMISSION HAS BEEN SUPPORTIVE OF THAT SINCE FY 20 FOR COMMERCIAL AND MULTIFAMILY.

SO FOR THIS YEAR, WE ARE ASKING THAT SAME PERMISSION AGAIN, AND WE ARE ONE UPPING THAT BY DOING THE SAME THING ON SOLAR, WHICH IS ITEM FOUR, AND SAYING FOR SOLAR, UM, WE WOULD PROVIDE THE SAME THING IN TERMS OF EVERY PROJECT.

YOU WOULD STILL GET THE LEVEL OF DETAIL, THE REPORTING ON A MONTHLY BASIS, BUT WE WOULD NOT HAVE TO INDIVIDUALLY GO TO COUNCIL TO PAY AN INCENTIVE ON EVERY SOLAR PROJECT THAT'S IN EXCESS OF, UH, THE COUNCIL AUTHORITY AT THIS POINT.

SO I, IN THE INTEREST OF TRYING TO MOVE THIS ALONG, I WANTED TO SEE IF WE COULD HANDLE BOTH OF THEM AT THE SAME TIME OR AT THE COMMISSION'S DISCRETION.

IF YOU WANT TO DISCUSS THEM INDIVIDUALLY AND APPROVE INDIVIDUALLY, YOU CAN DO THAT TOO.

AND STAFF IS HERE TO SUPPORT IF YOU, IF THERE ARE ANY MORE DETAILED QUESTIONS.

UM, I DID HAVE ONE QUESTION, AND THEN I'LL PASS IT ON TO SOMEBODY ELSE.

EXCUSE ME.

SYMPATHY CALL FOR YOU, UH, THIS YEAR COMPARED TO LAST YEAR, WHAT IS THE CHANGE IN THE OVERALL VALUE OF THESE PROGRAMS? UH, WE ARE INCREASING THE VALUE OF MULTIFAMILY AND COMMERCIAL.

I BELIEVE WE'RE INCREASING THE VALUE ON, IS THAT RIGHT? YEAH.

JOE.

HELLO, MY NAME IS JOSEPH TANG.

I'M THE MANAGER FOR OUR COMMERCIAL AND MULTIFAMILY ENERGY EFFICIENCY PROGRAMS. SO FOR OUR MULTIFAMILY PROGRAMS FOR ENERGY EFFICIENCY, WE HAVE TWO TYPES.

ONE IS OUR STANDARD REBATE PROGRAM, AND THE OTHER IS OUR INCOME QUALIFIED.

THE INCOME QUALIFIED PAYS AT A HIGHER RATE, AND WE TRY TO TARGET THAT TOWARDS PROPERTIES THAT HOUSE MORE LOW AND MODERATE INCOME HOUSEHOLDS.

UM, IN 2024, THE TOTAL BUDGET FOR THOSE TWO PROGRAMS WAS $2.9 MILLION FOR THE INCENTIVE DOLLARS THAT GET PAID TO THE PROPERTIES IN 2025, THAT NUMBER IS GOING UP TO $3.45 MILLION COMBINED FOR THOSE TWO PROGRAMS. UM, IN 2024, OUR COMMERCIAL AND SMALL BUSINESS PROGRAM WAS AT $3.6 MILLION.

IN 2025, THAT NUMBER IS GOING DOWN A LITTLE BIT TO 3.3 MILLION.

THE REASON FOR THAT IS WE ARE RIGHT SIZING OUR SMALL BUSINESS BUDGET.

WE'VE CONSISTENTLY SEEN THE PROJECT SIZE FOR THOSE FALL OVER TIME, AND WE'RE ACTUALLY SHIFTING TO A HIGHER TOUCH, MORE EDUCATION FOCUSED PROGRAM, UM, THAT WE'RE GOING TO BE TARGETING TOWARDS SMALL BUSINESS CUSTOMERS AND LOCAL NONPROFITS.

SO WE'RE CONTINUING TO EXPECT THOSE PROJECT SIZES TO DECREASE ON THE SMALL BUSINESS SIZE.

AND SO THAT'S THE REASON FOR THE BUDGET, UM, REDUCTION THERE FOR FY 25.

OKAY.

THANK YOU.

COMMISSIONER SILVERSTEIN.

THANK YOU.

I I SUPPORT BOTH OF THESE PROGRAMS, BUT I HAVE A PRETTY IMPORTANT QUESTION.

WHY IS THE BUDGET FOR ENERGY EFFICIENCY LOWER THAN THE BUDGET FOR SOLAR INCENTIVES? UM, SEEMS TO ME THAT IF WE ARE FACING, UM, CONGESTION COSTS ON OUR BORDERS, SO HIGHER IN LOAD POCKET COSTS, WE HAVE, UM, AND WE HAVE EQUITY ISSUES AND WE ARE TRYING TO SUPPORT MULTIFAMILY, IT SEEMS TO ME WE COULD DO A LOT MORE TO HELP AUSTIN'S RELIABILITY AND CONGESTION AND CARBON EMISSIONS AND, AND PEAK REDUCTION AND TRANSMISSION COSTS BY REDUCING AND SPENDING MORE ON MULTIFAMILY AND COMMERCIAL ENERGY EFFICIENCY THAN WE CAN ON SOLAR REBATES.

GOOD EVENING COMMISSIONERS.

SARAH NORRIS, DIRECTOR OF ENERGY EFFICIENCY SERVICES.

UM, I, COMMISSIONER SILVERSTEIN.

I BELIEVE THAT YOU'RE REFERRING TO THE FACT THAT THE SOLAR REBATES INCENTIVE BUDGET IS LARGER THAN JUST THE COMMERCIAL AND MULTIFAMILY.

THE TOTAL ENERGY EFFICIENCY REBATES, UH, PROPOSED BUDGET FOR 2024, I HAVE TO DOUBLE CHECK MY EXACT

[00:35:01]

SO IT'S SIGNIFICANTLY HIGHER THAN OUR SOLAR REBATES.

THANK.

AND WHAT IS OUR TOTAL SOLAR REBATE BUDGET? 12.

THAT'S A WONDERFULLY HELPFUL PIECE OF CONTEXT THAT I WISH YOU GUYS HAD PUT IN HERE, AND I APPRECIATE THE INFORMATION.

THANK YOU SO MUCH.

YEAH, ABSOLUTELY.

JUST TO CLARIFY, THE AGGREGATE AUTHORITY IS ONLY FOR THOSE TWO PROGRAMS BECAUSE THE SIZE OF THE INCENTIVES PAID OUT SOMETIMES, SOMETIMES EXCEED, UM, THE COUNCIL AUTHORITY, WHEREAS IN OUR RESIDENTIAL PROGRAMS OR WEATHERIZATION PROGRAMS, THEY, THEY DON'T, SO THEY'RE SMALLER, BUT WE PAY OUT A LOT MORE OF THEM, SO.

GOT IT.

SUPER HELPFUL.

THANK YOU VERY MUCH, MS. DORIS.

SOMETHING ELSE THAT WOULD, VICE CHAIR ROBBINS, SOMETHING ELSE THAT WOULD HELP WOULD BE IF YOU WOULD UPDATE YOUR ANNUAL REPORT.

THE ONE THAT'S ON THE WEBSITE NOW IS FOR 2021, AND I'VE FOUND THOSE STATISTICS OVER THE YEARS TO BE EXTREMELY HELPFUL.

THANK YOU FOR THAT.

UH, RECOMMENDATION.

RECOMMENDATION, COMMISSIONER ROBBINS, WE WILL MAKE SURE THAT ALL OF YOU HAVE ACCESS TO OUR 2023 REPORT.

I ACTUALLY JUST REFERENCED IT THE OTHER DAY, UM, SO I'LL MAKE SURE THAT IT IS PROPERLY UPDATED ON OUR WEBSITE.

THANK YOU FOR THAT.

AND JUST AS A MATTER OF, UM, COMMUNICATION AND FYI LAST YEAR, WE WENT THROUGH A PROCESS OF INTEGRATING, UH, CES CUSTOMER ENERGY SOLUTIONS.

USED TO HAVE A SEPARATE ANNUAL REPORT THAT IS NO LONGER THE CASE.

NOW IT IS INTEGRATED INTO AUSTIN ENERGY'S ANNUAL REPORT.

SO I JUST DON'T WANT, I WANT TO SET EXPECTATIONS THERE.

IF YOU'RE LOOKING FOR A SEPARATE CES ONLY ANNUAL REPORT, YOU WILL NOT FIND ONE.

UH, BUT YOU WILL SEE AUSTIN ENERGY'S ANNUAL REPORT IN WHICH THE CES DATA IS EMBEDDED WITHIN THAT.

I WISH YOU A SPEEDY RECOVERY.

, ARE THERE ANY OTHER QUESTIONS FROM COMMISSIONERS? OTHERWISE, I'M HAPPY TO ENTERTAIN A MOTION.

UH, IN THE INTEREST OF MOVING THINGS ALONG, I MOVE APPROVAL.

SECOND, THERE HAS BEEN A MOTION TO APPROVE ITEM NUMBER THREE FROM VI FROM THE VICE CHAIR AND SECONDED BY COMMISSIONER SILVERSTEIN.

WE'LL GO WITH THE ROLL CALL VOTE.

UH, REMINDER, IF YOU'RE REMOTE, PLEASE TURN ON YOUR CAMERAS AND WELCOME TO THE PARTY COMMISSIONER SKAFF.

I'M HOPING THAT YOU GOT YOUR AUDIO ISSUES RESOLVED.

WE'LL FIND OUT.

VICE CHAIR ROBBINS? YES.

COMMISSIONER DAVIS? YES.

COMMISSIONER FARMER? YES.

UH, COMMISSIONER LUKI? YES.

COMMISSIONER S CITI STILL WORKING OUT HER ISSUES? COMMISSIONER SCHWARTZ? YES.

COMMISSIONER SILVERSTEIN? YES.

AND THE CHAIR VOTES? YES.

THIS PASSES 7 0 0.

MOVING ON ITEM NUMBER.

UH, WAIT, WAIT, WAIT.

OH, THERE SHE IS.

STILL WITH NO AUDIO.

MAYBE SHE COULD RAISE HER HAND.

, ARE WE ALLOWED TO TAKE A THUMBS UP, AMY? YES, SHE'S ON CAMERA.

BEAUTIFUL.

THUMBS UP.

TWO THUMBS UP FROM COMMISSIONER.

ALL RIGHT.

, UH, PASSES.

8 0 0.

MOVING ON ITEM NUMBER FOUR.

WE JUST HAD A PRESENTATION ON THIS ONE THERE.

ANY FURTHER QUESTIONS OR DISCUSSION ON THIS ITEM? SO, MOVE, UH, THERE HAS BEEN A MOTION TO APPROVE BY THE VICE CHAIR.

IS THERE A SECOND? SECOND.

THE MOTIONS ARE COMING HARD AND HEAVY FROM THE RIGHT HAND SIDE OF THE MEETING ROOM.

UH, SECONDED BY COMMISSIONER SILVERSTEIN.

WE'LL DO A ROLL CALL.

VOTE.

UH, VICE CHAIR ROBBINS? YES.

COMMISSIONER DAVIS? YES.

COMMISSIONER FARMER? YES.

COMMISSIONER MALU.

COMMISSIONER LUKI? YES.

COMMISSIONER SCAFF.

COMMISSIONER SCHWARTZ? YES.

COMMISSIONER SILVERSTEIN? YES.

UH, AND THE CHAIR VOTES? YES.

LOOPING BACK TO COMMISSIONER S CITI, JUST IN CASE SHE COULDN'T HEAR US BEFORE.

THERE WE GO.

BIG THUMBS UP.

BEAUTIFUL.

THIS PASSES 8 0 0 AS WELL.

MOVING ON IN OUR AGENDA.

UH, I, THIS IS ONE OF THOSE WHERE I TOLD YOU I WAS GONNA PULL SOMETHING FORWARD, AND THAT IS THAT I WOULD LIKE TO BRING ITEM NUMBER 10, THE STAFF

[10. Staff briefing on the Solar Standard Offer Program by Tim Harvey, Customer Renewable Solutions Manager, Austin Energy.]

UH, AND THEN WE'LL GET INTO THE ITEMS AFTER THAT THAT ARE RELATED TO THIS ONE.

SO I BELIEVE WE HAVE TIM HARVEY COMING UP TO GIVE US A PEP TALK.

[00:40:03]

UM, RICHARD GENESEE, AGAIN, IN THE INTEREST OF, UH, SAVING TIME AND MOVING THINGS ALONG AND ALSO PRESERVING MY VOICE, I HAD JUST A COUPLE OF COMMENTS BEFORE TIM GIVES THE PRESENTATION.

AND THAT IS, UM, THE SOLAR STANDARD OFFER, UM, IS, UH, THE CULMINATION OF A LOT OF WORK THAT'S BEEN IN, UH, PROCESS SINCE THE LAST BASE RATE CASE.

UM, SO WE'VE HAD SIX, UH, STAKEHOLDER ENGAGEMENT MEETINGS ON THIS, UH, OFFER.

UH, WE BELIEVE THAT IT REALLY IS A, IS A GREAT OFFER.

AND AS WE HEARD THE SPEAKER, UH, EVEN ALLUDE TO TONIGHT, THERE IS, UH, SUPPORT FOR IT AMONG STAKEHOLDERS.

WE WE'RE EXCITED ABOUT ITS LAUNCH.

THERE IS A REASON THAT WE ARE PROPOSING THAT THIS NOT INCLUDE THE, UM, UH, THE SOCIETAL BENEFITS, WHICH WE WILL GET INTO AS PART OF THE DISCUSSION.

UM, WHAT'S REALLY IMPORTANT ABOUT THIS, UH, PROGRAM IS THAT IT BE SCALABLE AND, UM, AND THAT IT ALSO BE SELF-SUSTAINING AND THAT IT BE PAID FOR BY PARTICIPANTS AND NOT PAID FOR BY NON PARTICIPANTS.

AND IT IS OUR BELIEF THAT IF WE DO INCLUDE THE SOCIETAL BENEFITS AS PART OF THIS VALUE STREAM, IT STARTS TO BE PAID FOR BY NON PARTICIPANTS.

AND WE, WE CAN GET MORE INTO THAT, UM, AS WELL.

TRANSPARENCY IS ANOTHER BIG ELEMENT OF THIS PROGRAM.

AND PREDICTABILITY IN TERMS OF, UH, VALUE OF SOLAR BEING AT THE, UH, DIRECTED AT CONSUMERS AND SOLAR STANDARD OFFER BEING DIRECTED AT SOLAR DEVELOPERS AND PROVIDERS.

AND SO WE NEED TO ENSURE THAT THE SOLAR DEVELOPERS AND PROVIDERS UNDERSTAND, UM, AND HAVE A REASONABLE WAY TO PREDICT WHAT IS THE PRICE, WHAT IS THE STANDARD OFFER THAT WE ARE GOING TO BE OFFERING THIS, UH, AT IN ORDER TO PAY FOR THEIR SOLAR GENERATION.

SO WITH THAT, I'LL TURN IT OVER TO TIM.

THANK YOU, COMMISSIONERS.

AGAIN, MY NAME'S TIM HARVEY AND I, I'M THE CUSTOMER RENEWABLE SOLUTIONS MANAGER.

UH, NEXT SLIDE PLEASE.

SO THE STANDARD OFFER PROGRAM, UM, IS A NEW MECHANISM THROUGH WHICH WE CAN INCREASE THE COMMUNITY SOLAR PORTFOLIO.

UM, IT ENABLES CUSTOMER SIDED INSTALLATIONS, UM, THAT WILL, UM, WHERE THE GENERATION GOES TO COMMUNITY SOLAR.

UM, AND THIS IS A, A NOVEL APPROACH, UM, TO PROVIDE UPFRONT PROJECT CRITERIA AND TRANSPARENT PRICING TO THE CONTRACTORS TO ALLOW THEM TO TARGET PROJECTS THAT ARE VIABLE.

UM, AND IT COMES AS A RESULT OF US GOING OUT FOR RFP ON MULTIPLE OCCASIONS AND NOT RECEIVING VIABLE PROJECTS EITHER DUE TO, UM, THE PRICING BEING TOO HIGH OR THEY DIDN'T HAVE PROPER SITE CONTROL, OR THEY WERE SUGGESTING A, A PROJECT THAT WASN'T VIABLE ON THE DISTRIBUTION GRID.

SO IN ORDER TO TRY TO, UM, ELIMINATE THE UNNECESSARY WORK THAT GOES INTO AN RFP THAT DOESN'T RESULT IN A PROJECT, UM, BOTH ON OUR PART AND THE THE CONTRACTOR'S SIDE, UM, WE WANTED TO CREATE THIS OFFERING THAT MAKES IT VERY CLEAR AS TO WHAT IS ACCEPTABLE AND WHAT WHAT WE ARE WILLING TO PAY.

UM, AND SO THAT'S WHAT THIS DOES.

UM, NEXT SLIDE PLEASE.

SO TO JUST KIND OF, UM, GO OVER HOW THIS WORKS.

THE, UH, SOLAR STANDARD OFFER ENABLES CUSTOMER SITE INSTALLATIONS TO SUPPORT, WAIT A MINUTE.

OH, SORRY.

I'VE GOT, UH, A REPEAT THERE.

, UM, CUSTOMER CITED SOLAR, UM, SYSTEMS, UM, THAT ARE 50 KW AND UP TO 10 MEGAWATTS ARE CONNECTED ON THE DISTRIBUTION GRID ON THE UTILITY SIDE OF THE METER.

SO THOSE PROJECTS ARE NOT DEFRAYING THE HOST CUSTOMER'S BILLS.

UM, AUSTIN ENERGY PAYS THAT CUSTOMER DIRECTLY.

UM, THE, THE SYSTEM HOST WOULD RECEIVE SOME KIND OF A LEASE AGREEMENT AND OR HOSTING AGREEMENT, UM, FOR, UM, HOSTING THOSE PANELS.

UM, THE SYSTEM OWNERS WOULD BENEFIT BY RECEIVING THE STANDARD OFFER TARIFF THROUGH THEIR SOLAR GENERATION.

[00:45:02]

NEXT SLIDE PLEASE.

SO, THE DESIRED OUTCOMES OF THIS PROGRAM ARE, UM, TO OF COURSE INCREASE THE SOLAR, THE COMMUNITY SOLAR PROGRAM, AND ALSO THE ENVIRONMENTAL BENEFITS AND SOCIAL BENEFITS THAT GO ALONG WITH THAT.

UM, WE WANT TO INCREASE CUSTOMER SATISFACTION BY EXPANDING THAT PROGRAM AND MAKING IT AVAILABLE TO MORE CUSTOMERS.

UM, IT ALSO, UH, OPENS UP A NEW MARKET SECTOR.

UH, SO, UM, BUILDING OWNERS THAT NORMALLY WOULD NOT HAVE PARTICIPATED IN SOLAR BECAUSE THEY'RE UNABLE TO LEVERAGE THE BENEFITS DIRECTLY ARE NOW ABLE TO LEVERAGE THOSE BENEFITS DIRECTLY BECAUSE, UM, WE WOULD BE PAYING THE THIRD PARTY DIRECTLY RATHER THAN ONLY BENEFITING A CUSTOMER BEHIND THE BILL.

UM, AND THEN IT ALSO INCREASES ACCESS AND EQUITY AND AFFORDABILITY, UM, THROUGH THE COMMUNITY SOLAR PROGRAM.

NEXT SLIDE, PLEASE.

SO NOW I'M GONNA GET INTO THE RATE DESIGN.

UM, THE STANDARD OFFER RATE IS BASED ON AUSTIN ENERGY'S AVOIDED COST.

SO IT'S THE HIGHEST AMOUNT THAT AUSTIN ENERGY CAN PAY WITHOUT CAUSING ADDITIONAL COST TO OUR STAKE, OUR STAKEHOLDERS AND CUSTOMERS.

UM, THE PAYMENT, THE AVOIDED COSTS ARE BASED ON THE ERCOT MARKET.

UM, SO WE LOOK AT THE SOLAR PROFILE OVER THE DAY, RAMPING UP AND COMING DOWN.

WE ALIGN THAT WITH ERCOT MARKET PRICES AT THE AUSTIN ENERGY DAY AHEAD NODE.

AND, UH, THAT'S HOW WE DETERMINE THE VALUE OF THE ENERGY.

THE ANCILLARY SERVICES, UM, ENSURES THAT, UM, THERE'S ENOUGH GENERATION AND SO, UM, BY SUPPLYING THAT GENERATION, WE REDUCE OUR ANCILLARY SERVICE REQUIREMENTS AND THOSE COSTS.

AND THEN WE'RE ALSO REDUCING OUR FOUR CP, COINCIDENTALLY, WITH THE SOLAR PRODUCTION.

AND THAT RESULTS IN TRANSMISSION SAVINGS.

SO ALL THREE OF THOSE VALUES ADDED UP, UM, LEAD TO THE STANDARD OFFER.

NEXT SLIDE PLEASE.

SO YOU CAN SEE HERE, UM, THAT COMING OUT OF THE GATE WITH A STANDARD OFFER, THE INCENTIVE OR, OR THE, THE RATE FOR PRODUCTION FOR SYSTEMS UNDER A MEGAWATT ARE IS 7.61 CENTS.

FOR SYSTEMS OVER A MEGAWATT, IT'S 4.94 CENTS.

AND THAT'S BECAUSE SYSTEM OF OVER A MEGAWATT DO NOT, UH, SERVE TO REDUCE THE T COST FOR AUSTIN ENERGY.

SO WE HAVE TO ADD THOSE BACK INTO THE LOAD ZONE AND WE DON'T, UH, REALIZE THE TRANSMISSION REDUCTIONS THERE.

UM, AND YOU CAN SEE A CHART HERE OF OUR ANALYSIS OF THESE COMPONENTS OVER, UM, THESE THREE YEARS.

SO IN 2021, WHICH WAS THE TEST YEAR FOR THE BASE RATE CASE, AND, UM, THE, THE BASIS FOR THE VALUE OF SOLAR CURRENTLY, UM, THE ERCO ENERGY PRICE WAS 4.67 CENTS, TCOS, 2.67 CENTS, AND ANCILLARY SERVICES TO OR 0.27 CENTS.

SO YOU CAN SEE THAT IN 2022, UM, THE PRICES WENT UP CONSIDERABLY.

SO THE ENERGY COSTS DOUBLED IN 22, UM, AND TCO WENT UP AND, AND ANCILLARY SERVICES ALMOST DOUBLED AS WELL.

UM, SO YOU CAN SEE A PRETTY SIGNIFICANT CHANGE THERE.

AND 23 ROUGHLY STAYED THE SAME, UM, WITH SOME SLIGHT FLUCTUATIONS.

SO WHAT THIS IS FOLLOWING THE VALUE OF SOLAR RATE SCHEDULE, UM, SO THAT WHEN THE VALUE OF SOLAR CHANGES, THE STANDARD OFFER RATE WILL CHANGE AS WELL.

SO IN 2026, THE UM, RATE WILL ADJUST AND IT WILL BE BASED ON THE PREVIOUS FIVE YEARS SO THAT THE AVERAGE OF THE PREVIOUS FIVE YEARS.

UM, AND THE SAME WILL HAPPEN WITH THE VALUE OF SOLAR.

AND THEN EVERY THREE YEARS IT ADJUSTS BASED ON THE PREVIOUS FIVE YEARS OF ANALYSIS.

SO YOU CAN SEE HERE, UM, BY PRESENTING WHAT THE ANALYSIS THAT WE'VE PERFORMED SO FAR, UH, THE CONTRACTING COMMUNITY WILL HAVE VISIBILITY INTO WHERE

[00:50:01]

UM, SO THEY HAVE SOME AMOUNT OF CERTAINTY AS TO WHAT IT WILL BE AT 2026 ALREADY.

UM, ONCE WE PERFORM THE 2024 ANALYSIS, UH, WHICH WILL BE IN JANUARY, UM, WE WILL POST THAT AND THEN THE FOLLOWING JANUARY, WE, WE WILL POST 2025 AND THEN WE WILL BE, UM, CHANGING THE RATE IN IN MARCH OF 2026.

NEXT SLIDE.

SO FOR TIMELINES, UM, ON, WE'RE PLANNING FOR THE PROGRAM PRE-LAUNCH ON OCTOBER 15TH, THAT WILL INCLUDE A STAKEHOLDER MEETING, UM, REVIEW OF ALL OF THE GUIDELINES AND REQUIREMENTS IN DETAIL, UM, REVIEW OF THE APPLICATION PERMITTING AND INSPECTION PROCESSES.

UM, AND THEN WE'LL, WE'LL BEGIN TO TAKE REGISTRATION FOR, UH, SOLAR STANDARD OFFER PARTICIPATING CONTRACTORS AT THAT TIME, UM, APPLICATIONS WILL BE ACCEPTED VIA THE WEB-BASED APPLICATION PROCESSING TOOL.

AND UPON, UM, APPLICATION APPROVAL PROJECTS MAY BEGIN CONSTRUCTION.

SO, UM, WE WILL NOT INTERCONNECT THOSE PROJECTS UNTIL FEBRUARY.

UM, IN FEBRUARY WE WILL HAVE THE BILLING SYSTEM ABLE TO, TO PROCESS EVERYTHING, UM, AND AUTOMATION SET UP FOR THAT.

AND THAT'S WHEN WE WILL BEGIN A ALLOWING THESE SYSTEMS TO INTERCONNECT.

UM, WE'LL DO THAT ON A FIRST COME FIRST SERVE BASIS.

UM, WITH INTERCONNECTION COMES PERMISSION TO OPERATE.

SO THEY'LL BEGIN, UM, TO GENERATE AND WE WILL ACTIVATE THOSE ACCOUNTS AND THEN WE WILL SETTLE UP ON A QUARTERLY BASIS UNTIL SUCH TIME THAT WE CAN AUTOMATE, UM, PAYMENTS TO LIKE A DIRECT DEPOSIT, UM, AT, AT WHICH POINT WE WOULD LIKELY CHANGE TO ONCE A MONTH CREDITING AND TRUE.

UP.

NEXT SLIDE PLEASE.

SO IN ADDITION, UM, WE WILL, IN DECEMBER, WE'LL KICK OFF A SECOND SET OF STAKEHOLDER MEETINGS THAT'LL FOCUS ON THE RESIDENTIAL COMPONENT OF, UH, THE STANDARD OFFER.

RESIDENTIAL IS SIGNIFICANTLY DIFFERENT, UM, BECAUSE THEY, THEY REQUIRE QUITE A BIT MORE CONSUMER PROTECTION AND, UM, UH, MANY OTHER CONSIDERATIONS INCLUDING THE INTERCONNECTION AND OF, OF THE SYSTEM BECAUSE WE'RE INTERCONNECTING ON THE UTILITY SIDE OF THE METER.

THAT'S SOMETHING THAT WE HAD, WE'VE ALREADY EXPLORED, UM, THROUGH SHARED SOLAR, IF YOU REMEMBER BACK THEN.

BUT, UM, WE HAVE NOT EXPLORED THAT VERY MUCH ON THE RESIDENTIAL SIDE, SO WE'LL NEED TO WORK THROUGH SOME OF THOSE CHALLENGES.

UM, BILLING SYSTEM WILL REQUIRE A BIT MORE ADJUST ADJUSTMENT FOR THAT.

UM, WE'RE GONNA, WE NEED TO MAKE SURE THAT WE HAVE ALL OF THE RESOURCES THAT WILL BE REQUIRED TO ENABLE THIS OPERATIONALLY, UM, WITH THE UTILITY.

'CAUSE THERE COULD BE MANY MORE PROJECTS IF YOU'RE DOING THEM AT, YOU KNOW, THREE TO NINE KILOWATTS AS OPPOSED TO DOING THEM AT 50 PLUS KILOWATTS FOR EVERY PROJECT.

UM, SO WE NEED TO BE PREPARED FOR THAT.

WE ARE INTERESTED IN EXPLORING OWNERSHIP FLIP MODELS, UM, WITH THE, THE STANDARD OFFER.

UM, AND WE'RE GOING TO BE DOING A LOT OF COMMUNITY ENGAGEMENT THROUGH SOLAR FOR ALL, WHICH I'LL BE TELLING YOU MORE ABOUT IN ANOTHER MEETING.