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IT LOOKS LIKE WE HAVE A QUORA HERE IN PERSON, AND WE HAVE COUNCIL MEMBER KELLY REMOTE.
[CALL TO ORDER]
IN THE MORNING HERE ON TUESDAY, SEPTEMBER 24.UH, I'M LESLIE POOLE, CHAIR OF THE AUSTIN ENERGY UTILITY OVERSIGHT COMMITTEE, AND I CALL THIS MEETING TO ORDER.
AND LET'S SEE ON OUR AGENDA, THE FIRST ITEM IS PUBLIC
[Public Communication: General]
COMMUNICATION.AND AMY, I THINK YOU HAVE A LIST OF, UH, HOW MANY SPEAKERS DO WE HAVE FOR US? I DO.
AND THAT'S 30, UH, THAT'S ABOUT 30 MINUTES BECAUSE WE HAVE THREE MINUTES PER SPEAKER.
SO WOULD YOU, UH, CALL THE NAMES FOR US, PLEASE? SURE.
UH, THE FIRST SPEAKER IS JEN KRIEGER, AND AFTER JEN WILL BE AL BRADEN.
AND I THINK WHILE JEN IS COMING UP, I'LL MENTION THAT AL BRADEN SENT ME AN EMAIL SAYING HE IS NOT ABLE TO MAKE IT TODAY.
AND, UM, HE HAS SENT I THINK EVERYBODY HIS COMMENTS IN AN EMAIL.
SO WE'LL CALL THE NEXT PERSON AFTER AL.
UM, THE NEXT PERSON AFTER JEN WILL NOW BE IRBY FOSTER.
GOOD MORNING, MAYOR AND COUNCIL.
UH, MY NAME IS JEN KRIEGER AND I'M A DISTRICT FOUR RESIDENT.
I'M PROVIDING COMMENT ON AGENDA ITEM THREE.
I HAVE THREE REASONS FOR BEING HERE TODAY.
TWO, HOLDING FIRM ON OUR COMMITMENT TO NO NEW CARBON EMITTING POWER SOURCES.
AND THREE, SHOWING SUPPORT FOR AUSTIN ENERGY'S PROPOSAL TO TRANSITION ITS PROGRAM DESIGN AND EVALUATION TO USE AN AVOIDED GREENHOUSE GAS EMISSIONS METRIC RATHER THAN AVOIDED MEGAWATTS.
FIRST, AS IT RELATES TO TRANSPARENCY, I ASK THAT YOU PLEASE DIRECT AUSTIN ENERGY TO POST ALL RESOURCE PLAN DATA AND MATERIALS THAT ARE PROVIDED TO ELECTRIC UTILITY COMMISSION MEMBERS ON THE AUSTIN ENERGY AND OR EUC WEBSITE.
ONE OF THE ITEMS THAT I HAVE BEEN, I HAVE NOT BEEN ABLE TO DISTILL FROM PUBLIC PRESENTATIONS ON THE 2035 RESOURCE PLAN IS IF AND OR HOW AUSTIN ENERGY IS PRICING THE HUMAN AND ECONOMIC IMPACT OF THE ENVIRONMENTAL POLLUTION THAT'S CREATED BY CONTINUING TO OPERATE FOSSIL FUEL GENERATING UNITS AND POTENTIALLY INVESTING IN A NEW GAS TO HYDROGEN COMBUSTION PLANT, WHILE THE PRIMARY ENVIRONMENTAL FOCUS OF THE RESOURCE PLANNING PROCESS IS MEETING OUR GREENHOUSE GAS REDUCTION GOALS.
PAST RESOURCE PLANS HAVE ALSO INCLUDED CALLS FOR ACCOUNTING FOR THE EMISSIONS IMPACT OF OTHER TYPES OF LOCAL AIR POLLUTANTS, AS WELL AS WATER IMPACTS.
AS OUR REGION FLIRTS WITH NON-ATTAINMENT OF THE FEDERAL AIR QUALITY STANDARD FOR PARTICULATE MATTER AND GROUND LEVEL OZONE, IT'S IMPORTANT THAT WE CONSIDER THE HUMAN AND FINANCIAL COST OF THESE NON GREENHOUSE GAS POLLUTANTS, AND SIMILARLY, THE ENVIRONMENTAL AND FINANCIAL COSTS OF WATER USE IN A WATER SCARCE REGION.
AUSTIN ENERGY ALSO DOES NOT HAVE A COMPREHENSIVE RESOURCE PLANNING WEBPAGE THAT INCLUDES LINKS TO ALL PAST RESOURCE PLANS AND PROGRESS REPORTS, NOR ARE THESE RESOURCES AVAILABLE IN LANGUAGES OTHER THAN ENGLISH.
I ASK THAT YOU PLEASE DIRECT AUSTIN ENERGY TO PROVIDE THIS BASELINE LEVEL OF TRANSPARENCY.
SECOND, I AM CONCERNED ABOUT AUSTIN ENERGY'S ONGOING STUDY OF AS OF ADDING A NEW GAS TO HYDROGEN COMBUSTION PLANT AS PART OF THE CURRENT 2035 RESOURCE PLANNING PROCESS.
THE CURRENT 2030 RESOURCE PLAN, VERY PLAINLY STATES AUSTIN ENERGY WILL NO LONGER PURCHASE CONTRACT FOR OR BUILD LONG-TERM GENERATION OR STORAGE RESOURCES THAT EMIT NEW CARBON, A NEW GAS PLANT, OR REGARDLESS OF WHETHER IT ULTIMATELY IS TRANSITIONED TO HYDROGEN, IS AN UNDENIABLE SOURCE OF NEW CARBON.
AND BUILDING A NEW GAS PLANT WILL LOCK IN 30, 40 PLUS YEARS OF NEW FOSSIL FUEL INFRASTRUCTURE.
I ASK THAT CITY COUNCIL REMAIN FIRM AND ITS COMMITMENT FOR NO NEW CARBON POLLUTING POWER SOURCES FOR OUR COMMUNITY.
LASTLY, I WANNA EXPRESS MY SUPPORT FOR AUSTIN ENERGY STAFF RECOMMENDATIONS TO TRANSITION FROM USING AVOIDED MEGAWATTS TO AVOIDED GREENHOUSE GAS EMISSIONS WHEN DESIGNING AND MEASURING THE EFFECTIVENESS OF DEMAND.
SIDE MANAGEMENT PROGRAMS. LEADING UTILITIES ACROSS THE COUNTRY ARE MAKING THIS SAME EVOLUTION, AND I STRONGLY SUPPORT THIS PROPOSAL TO SUPPORT, UM, HOME AND BUSINESS DECARBONIZATION.
IRBY FOSTER, AND AFTER IRBY WILL BE CRAIG NASER.
THANK YOU, MADAM CHAIR IRBY FOSTER, UH, DISTRICT THREE.
I'M HERE TO ASK THE COMMITTEE TO TAKE ACTIONS THAT WOULD ONE, REQUIRE FASTER RESPONSE TIME TO REPAIR FREEWAY STREETLIGHT OUTAGES.
TWO, REDUCE THE INFRASTRUCTURE REPAIR TIME, AND THREE, PASS A POLICY THAT WOULD STOP AUSTIN ENERGY FROM CLOSING 3 1 1 REQUESTS BEFORE THEY'RE COMPLETED.
AMID AUSTIN ENERGY HAS BEGUN TO REPAIR THE HUNDREDS OF FREEWAY STREETLIGHT OUTAGES, BUT UNFORTUNATELY HUNDREDS REMAIN, PARTICULARLY IN COUNCILOR VELA.
MANY LIGHTS I'VE BROUGHT TO YOU 90 TO 120 DAYS AGO ARE STILL OUT.
I'M ASKING THE COMMITTEE TO INVESTIGATE THE REASONS FOR THE UNDERPERFORMANCE AT AUSTIN ENERGY AND DEMAND CHANGE, AUSTIN
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ENERGY NEEDS TO LOOK FOR QUICKER SOLUTIONS.THOSE COULD BE RUNNING TEMPORARY OVERHEAD WIRING, OR REPLACING OR HIRING ADDITIONAL CONTRACTORS.
FREEWAY OUTAGES SHOULD REALLY BE REPAIRED IN ABOUT 30 DAYS.
SECOND, AUSTIN ENERGY IS REPORTING.
IT WILL TAKE EIGHT TO 12 MONTHS TO REPAIR MANY OF THE BROKEN KNOCKDOWN, STREETLIGHT POLES AND BASES.
FREEWAY LIGHTING WORKS MUCH LIKE CHRISTMAS LIGHTS, SO THE RESULT OF A BROKEN PIT POLE IS AT LARGE STRETCHES AND MILES OF FREEWAY CAN BE OUT WAITING ANOTHER YEAR IS JUST UNACCEPTABLE.
PASS AN ORDINANCE TO REQUIRE AE TO MAKE REPAIRS WITHIN 30 DAYS.
CURRENTLY, AUSTIN ENERGY REPAIRS RESIDENTIAL STREETLIGHTS IN ABOUT THREE DAYS, HOWEVER, IT'S NOT AN ORDINANCE.
TAKING EIGHT TO 12 MONTHS TO REPAIR BROKEN BASES AND MILES OF FREEWAY LIGHTING IS REALLY UNACCEPTABLE.
I WOULD ASK THE COMMITTEE TO PASS AN ORDINANCE TO REQUIRE AUSTIN ENERGY TO REPAIR FREEWAY LIGHTING OUTAGES IN A REASONABLE AMOUNT OF TIME IN MAYBE 30 DAYS.
ALSO, TIE IT TO KEY PERFORMANCE INDICATORS.
FINALLY, AUSTIN ENERGY ROUTINELY CLOSES 3 1 1 FREEWAY REQUESTS THAT TAKE TOO LONG.
AS YOU CAN SEE IN MY ATTACHMENTS ABOVE, I BELIEVE THIS PRACTICE IS DECEPTIVE AND SHOULD BE STOPPED BY THE COMMITTEE CLOSING.
THE COMPLAINT MASKS THE LONG TIME THAT IT ACTUALLY TAKES TO MAKE FREEWAY LIGHTING REPAIRS, BUT GIVES THE ILLUSION THE REPAIRS ARE COMPLETE.
CLOSING REQUESTS, STOPS, UPDATES ON THE COMPLAINT, AND REMOVES OVERSIGHT BY CITY HALL.
AUSTIN ENERGY IS OFF THE HOOK, SO TO SPEAK, BECAUSE THE URGENCY TO MAKE THE REPAIRS HAS BEEN REMOVED.
REPAIRS THAT TAKE MAY TAKE A YEAR HAVE NO CONSEQUENCE.
I ASK THE COMMITTEE TO INVESTIGATE AND STOP THIS PRACTICE.
PASS AN ORDINANCE THAT REQUIRES COMPLAINTS TO REMAIN OPEN UNTIL THEY'RE REPAIRED.
IN CONCLUSION, I'M ASKING THE COMMITTEE TO TAKE ACTIONS ON OVERSIGHT THAT WOULD ONE, PASS AN ORDINANCE THAT REQUIRES ROUTINE FREEWAY OUTAGES TO BE REPAIRED IN A REASONABLE AMOUNT OF TIME, SAY 30 DAYS.
NUMBER TWO, REDUCE THE KNOCKDOWN.
POLL BASED REPAIR TIME AND DEMAND REDUCTION OR ADDITIONAL CONTRACTORS BE BROUGHT ON BOARD.
AND NUMBER THREE, I'M ASKING YOU TO PASS AN ORDINANCE THAT WOULD PROHIBIT THE CLOSING OF 3 1 1 REQUESTS.
AND TWO, THE REPAIRS ARE COMPLETED, AND AT LEAST TIE IT TO KPIS.
OUR NEXT SPEAKER, I HAVE AN ATTACHMENT WITH AMY.
HOW ARE YOU? YOU HAVE THREE MINUTES, SIR.
HELLO, CRAIG NASER, CONSERVATION CHAIR, LONE STAR CHAPTER SIERRA CLUB.
ONCE AGAIN, HERE IS A QUOTE FROM THE WRITER, WENDELL BERRY.
WE HAVE LIVED OUR LIVES BY THE ASSUMPTION THAT WHAT WAS GOOD FOR US WOULD BE GOOD FOR THE WORLD WE HAVE BEEN WRONG.
WE MUST CHANGE OUR LIVES SO THAT IT WILL BE POSSIBLE TO LIVE BY THE CONTRARY ASSUMPTION THAT WHAT IS GOOD FOR THE WORLD WILL BE GOOD FOR US.
AND THAT REQUIRES THAT WE MAKE THE EFFORT TO KNOW THE WORLD AND LEARN WHAT IS GOOD FOR IT.
WHAT WE ARE DOING TO THE EARTH RIGHT NOW, THROUGH EXCESSIVE CO2 AND METHANE EMISSIONS IS ALREADY PRODUCED SERIOUS AND POTENTIALLY VERY LONG LASTING CLIMATE CHANGE.
WE HAVE ARRIVED AT THIS POINT BY DOING WHAT IS GOOD FOR HUMANS, IGNORING WHAT IS GOOD FOR THE PLANET.
IN THE PAST, WE COULD SAY IT WAS OUT OF IGNORANCE.
THE CHANCES OF REACHING TIPPING POINTS IN THE EARTH'S CLIMATE ARE GROWING DRAMATICALLY, AND THEY MAY BE IRREVERSIBLE IN TIMEFRAMES THAT MATTER.
THE EFFECTS OF THIS ON HUMAN SOCIETY WILL BE THE EXACT OPPOSITE OF SUSTAINABILITY.
IT WILL BE MASSIVE CHANGE TO AN UNSURVIVABLE FUTURE.
THE POOR WILL DIE FIRST, WHICH IS THE DEFINITION OF INEQUITY.
RENEWABLE ENERGY IS BY ITS VERY NATURE, AFFORDABLE ENERGY HISTORY SHOWS US THAT NON-RENEWABLE ENERGY WILL ALWAYS INCREASE IN PRICE AS A MOST EASILY AVAILABLE FUEL IS CONSUMED.
OUR PLANET RUNS ON RENEWABLE ENERGY.
I NOW HAVE 10 SOLAR CELLS ON MY HOUSE.
AND THEY PAY WILL PAY FOR THEMSELVES IN A LITTLE MORE THAN FIVE YEARS BEYOND WHICH THEY WILL SAVE ME EVEN MORE MONEY WHILE HELPING AUSTIN THROUGH PEAK POWER PERIODS.
MEANWHILE, NATURAL GAS PRICES MORE THAN DOUBLED.
WE NEED TO EXPAND ACCESS TO SOLAR ENERGY FOR EVERYONE, INCLUDING RENTERS AS QUICKLY AS POSSIBLE, JUST LIKE NATURE.
WE NEED TO GREATLY INCREASE ENERGY STORAGE CAPABILITIES AND INVEST IN BATTERY TECHNOLOGY.
WE DO NOT NEED A NEW METHANE POWER PLANT.
CONVERTING A COMBUSTION METHANE POWER PLANT TO HYDROGEN WILL JUST CONTINUE TO PRODUCE NITROGEN OXIDES THAT CREATE OZONE THAT CAN PERMANENTLY DAMAGE HUMAN LUNGS, PARTICULARLY IN CHILDREN THAT IS NOT EQUITY.
AS FOR GREEN HYDROGEN, THE LAWS OF PHYSICS TELL US THAT BURNING IT TO PRODUCE ELECTRICITY IS VERY IN ENERGY, INEFFICIENT, MAKING IT UNAFFORDABLE AND UNSUSTAINABLE.
THERE COMES A TIME IN EVERYONE'S LIFE WHEN DEMANDING RELIABILITY WILL NOT LEAD YOU TO WHERE YOU KNOW YOU NEED TO GO.
YOU NEED TO DO WHAT YOU KNOW IS RIGHT EVEN WHEN THE PATH SEEMS UNCERTAIN.
THE PROBLEM IS WHEN WE ACT COLLECTIVELY, BUT DO
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WE EVER REALLY ACT COLLECTIVELY IN SUCH AN, AN EQUITABLE SOCIETY AS THE ONE IN WHICH WE NOW LIVE? THE ANSWER IS IN HOW WE EVALUATE RISK.I THINK WE ALREADY KNOW WHAT WE HAVE TO DO.
WE JUST NEED THE POLITICAL WILL TO DO IT.
THE NEXT SPEAKER IS RICHARD HALPIN.
AND AFTER RICHARD IS BECKY HALPIN.
GLAD TO SEE YOU AND BECKY HERE TODAY.
BECKY, IF YOU'D LIKE TO COME ON DOWN TO THE FRONT, YOU'LL BE AFTER YOUR HUSBAND.
ALWAYS A PLEASURE TO SEE YOUR SMILING FACE,
THANK YOU ALL FOR YOUR SERVICE.
MY NAME, GOOD MORNING, CHAIRWOMAN POOL AND MEMBERS OF THE BOARD OF DIRECTORS OF AUSTIN ENERGY.
I AM RICHARD HALPIN WITH THE AUSTIN CHAPTER OF THE TEXAS ALLIANCE OF RETIRED AMERICANS.
I AM HERE TO SPEAK TO YOU TODAY ABOUT THE UNPRECEDENTED OPPORTUNITIES THAT ARE BECOMING AVAILABLE TO US.
YOU AND PREVIOUS COUNCIL MEMBERS AS THE DECISION MAKING ENERGY.
AUSTIN ENERGY BOARD MEMBERS HAVE A LOT TO BE PROUD OF.
AUSTIN ENERGY HAS BEEN AN INSPIRING FORCE IN THE MAKING IN THE PROCESS OF MAKING TEXAS A LEADER IN RENEWABLE ENERGY.
UH, THIS IS IMPORTANT BECAUSE WE FACE A COMING ENERGY MARKET DEMANDS OF UNPRECEDENTED PROPORTIONS, UH, AND INFRASTRUCTURE THAT'S OUT OF DATE, TRANSMISSION LINES THAT ARE ALREADY FULL, UH, BEFORE THEY'RE COMPLETED IN THEIR RENOVATIONS.
AND BILLIONS OF OUR TAX DOLLARS BEING MISMANAGED AS, UH, LOW INTEREST LOANS TO THE GAS COMPANIES WHO FAILED US, UM, A FEW YEARS AGO IN THE GRID FAILURE AND GAS COMPANIES THAT, UH, PRODUCE A TOXIC WASTE THAT IS A KILLER.
AS WITH ALL CRISIS, THERE IS AN OPPORTUNITY AND WE ARE AT A TIPPING POINT, AND YOU, WE CAN MAKE A QUANTUM LEAP.
WHAT IF YOU DIRECTED OUR ENTERPRISE AUSTIN ENERGY AND THE EUC TO PRODUCE A VISIONARY PLAN? YOU'RE USED TO VISIONARY PLANS MAYOR, A VISIONARY PLAN THAT SHOWS HOW WE CAN PRODUCE MORE ENERGY THAN EVER BEFORE AND DO IT WITH OUR NATIONAL CLEAN RENEWABLES AFFORDABLE ENERGY MODEL.
AN EXAMPLE OF THIS WOULD BE INCREASING AND IMPROVING THE SOLAR STANDARD.
OFFER A WIN-WIN ON SO MANY LEVELS THAT YOU CAN DO THAT WOULD BE A WAY TO HAVE A TEXAS SIZE ENTERPRISE SUCCESS.
THAT WOULD BE A WAY TO BRING SIGNIFICANTLY MORE REVENUE INTO OUR CITY TO SUPPORT THE CRITICAL PROGRAMS THAT SERVE OUR PEOPLE.
THAT WOULD GIVE YOU THE STANDING TO SPEAK TO OUR COMMUNITY ABOUT THE POSSIBILITY OF SIGNIFICANT MORE CLEAN ENERGY AND AFFORDABLE PROGRESS AT THE SAME TIME, ASKING THEM TO BE INVOLVED THROUGH CONSERVATION AND EFFICIENCY.
DON'T PEOPLE WANT TO HEAR THIS KIND OF LEADERSHIP? I THINK SO.
DON'T PEOPLE WANNA BE INVOLVED IN SOLUTIONS? YOU CAN DO THAT.
YOU CAN DIRECT OUR ENERGY ENTERPRISE TO GROW AND BECOME EVEN BETTER SUCCESSFUL COMMUNITY SERVING BUSINESS.
THERE IS A HIGH STANDARD HERE THAT YOU HAVE HELPED CREATE.
AN EXAMPLE OF THAT IS THE EUC THAT YOU HAVE APPOINTED.
THE EUC HAS PRODUCED A FOSSIL FUEL FREE RESOURCE GENERATION AND CLIMATE PROTECTION PLAN THAT IS OUTSTANDING AND WORTHY OF YOUR FULL SUPPORT.
THANK YOU VERY MUCH FOR YOUR TIME AND ATTENTION.
AND AFTER BECKY IS SHANE JOHNSON.
GOOD MORNING, COUNCIL AND MAYOR.
HELLO, I'M BECKY HELP AND I'M REPRESENTING THIRD ACT.
TEXAS IS AN ORGANIZATION OF OLDER PEOPLE WHO ARE INTERESTED IN ADDRESSING CLIMATE, THE CLIMATE CRISIS.
IT'S VERY DISAPPOINTING TO SEE AUSTIN ENERGY MODELING AND NEW GAS PLANT IN THE FUTURE RESOURCE PLAN.
THE ECONOMICS AND EFFICIENCIES OF CLEAN TECH SUCH AS BATTERIES, SOLAR, WIND, AND NOW EVEN POTENTIALLY GEOTHERMAL, ARE STEADILY PUSHING THESE OLD FOSSIL FUEL PLANTS OFF THE PLAYING FIELD.
THIS IS BECAUSE CLEAN TECHNOLOGY IS CONSTANTLY IMPROVING AND EVOLVING.
GEOTHERMAL ANYWHERE IS BEGINNING TO LOOK LIKE A CLEAN, AFFORDABLE POSSIBILITY FOR OUR FUTURE.
BUT FOSSIL FUELS STAY THE SAME, PUSHING THEIR HEAT TRAPPING GASES INTO THE ATMOSPHERE AND CLEAN TECHNOLOGY IS SHOWING UP AND SHOWING OFF.
A COUPLE OF WEEKS AGO IN TEXAS, SOLAR SHATTERED ITS PREVIOUS
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DAILY RECORD AND PRODUCED ALMOST 22,000 MEGAWATTS OF APPROX OR APPROXIMATELY 40% OF TEXAS'S DEMAND FOR THE DAY.WHOLESALE POWER WAS FREE FOR TWO HOURS AND AT 2 CENTS PER KILOWATT HOUR ALL THE DAY.
THIS IS ABUNDANT INEXPENSIVE ENERGY, JUST WHAT WE NEED.
NATURAL GAS BURNERS, EVEN THE MYTHICAL HYDROGEN GAS BURNERS WILL BECOME STRANDED ASSETS AS CLEANER, CHEAPER, MORE EFFICIENT TECHNOLOGIES TAKE THEIR PLACE.
AND THIS IS HAPPENING QUICKLY.
WHY BURDEN AUSTIN ENERGY RATE PAYERS WITH A GAS PLANT THAT WILL BE A COSTLY DINOSAUR WHEN WE CAN ACCOMPLISH OUR GOALS WITH CLEANER, MORE INEFFICIENT TECHNOLOGY? ON AUGUST 21ST, JUPITER POWER BEGAN OPERATING ITS FIRST BIG 200 MEGAWATT, TWO HOUR BATTERY NEAR THE HOUSTON SHIP CHANNEL ON A SITE OF AN OLD COAL PLANT, THEY EXPECT TO ADD ANOTHER 400 MEGAWATT TO OUR BATTERY IN THE NEAR FUTURE.
ON AUGUST 28TH, SAN ANTONIO CPS ENERGY ANNOUNCED IT'S BUILDING A 400 MEGAWATT FOUR HOUR BATTERY NEAR THEIR OLD COAL PLANT AND ANOTHER 200 MEGAWATT BATTERY AT THEIR LEON CREEK POWER PLANT.
MEANWHILE, AUSTIN ENERGY HAS LESS THAN A PITIFUL 10 MEGAWATTS.
I BELIEVE AUSTIN ENERGY HAS SOME OLD COAL AND GAS PLANT SITES.
WE NEED GENERATION IN THE AUSTIN LOAD ZONE.
LET'S PUT CLEAN TECHNOLOGY IN OUR BACKYARD.
THE NEXT SPEAKER IS SHANE JOHNSON, BUT I DON'T SEE HIM.
AND THE NEXT AFTER THAT IS CABO WHITE.
AND WHO ARE THE TWO SPEAKERS AFTER SHANE AND KABA? AFTER THAT IS PAUL ROBBINS AND JORGE VIRO.
AND, UM, MR. VIERRA AND MR. ROBBINS, IF YOU'D LIKE TO COME DOWN TOWARD THE FRONT TOO, THAT'D BE GREAT.
AND I SEE MR. JOHNSON COMING DOWN THE AISLE.
YOU HAVE THREE MINUTES, MR. SHINE ON THAT.
THIS IS, UH, THE, UH, YOU KNOW, MORNING TRAFFIC HUSTLE, RIGHT? UM, SO I KNOW THIS IS TICKING THROUGH MY TIME, BUT THAT'S OKAY.
HE HAD PRONOUNS, UH, D SEVEN RESIDENT, AS ARE MY FAMILY MEMBERS WHO I OFTEN AM ABLE TO SPEAK FOR AS WELL.
UM, SO FIRST OF ALL, UH, LIKE SEVERAL SPEAKERS HAVE, HAVE STATED, I WANT TO REITERATE THAT, UH, YOU KNOW, WE WANT TO SEE AUSTIN ENERGY AND THE CITY OF AUSTIN STICK TO OUR CLIMATE GOALS, STICK TO OUR CLIMATE EQUITY VALUES AND OUR RACIAL EQUITY VALUES BEYOND THAT, THAT WE HAVE, UM, REALLY BEEN A GUIDING LIGHT AND LEADER ON FOR SO MANY YEARS IN MANY WAYS.
UH, AND WE DON'T WANT TO TAKE A STEP BACKWARDS.
UM, I'M ALSO, UH, ONE OF THE MEMBERS REPRESENTING SIERRA CLUB, SPECIFICALLY IN THE STAKEHOLDER WORKSHOP.
UH, AND SO, AND I, WHEN I SAW THIS PRESENTATION, I SKIMMED THROUGH IT, UH, YESTERDAY, AND I JUST WANTED TO POINT OUT A FEW THINGS AND ADD A LITTLE MORE, UM, CONTEXT AND NUANCE FROM THE DISCUSSIONS.
UM, SO, UH, I THINK IT'S FOUR OUT OF FOUR OR FIVE OUT OF THEIR, UH, 14 SCENARIOS ARE MODELING A NEW GAS PLANT WITH, IT SAYS HYDROGEN.
THEY HOPE TO THEORETICALLY CONVERT TO HYDROGEN IN THE FUTURE.
UM, AND THEN THE, UH, UH, COMMUNITY ENGAGEMENT CONSULTANT, YOU KNOW, THE MAIN TAKEAWAYS KIND OF HAMMERED HOME AGAIN AND AGAIN IS RELI RELIABILITY IS NUMBER ONE.
PEOPLE ESSENTIALLY, PRIMARILY, OR SOLELY CARE ABOUT RELIABILITY.
UH, IT'S KIND OF DISAPPOINTING TO SEE HOW MUCH THIS GLOSSES OVER THE REALLY IMPORTANT NUANCES THAT WERE BROUGHT UP IN THAT DISCUSSION, UH, PARTICULARLY, AND WHEN YOU LOOK AT THE ACTIVITY THEY DID AND THE SCORES THEY DID, PEOPLE VALUE AFFORDABILITY AND SUSTAINABILITY AS THEY PUT IT NEARLY AS MUCH AS RELIABILITY.
YOU KNOW, THESE ARE THINGS YOU SHOULDN'T HAVE TO PICK BETWEEN.
I GET A, A CERTAIN POINT WE HAVE TO PICK A LITTLE BIT.
FOR EXAMPLE, YOU KNOW, KAI, BEN, I AND OTHER ADVOCATES WE'RE NO LONGER ADVOCATING FOR, UH, YOU KNOW, SHUTTING DOWN OUR CURRENT GAS PLANTS BY 2030 BECAUSE OF THOSE, THOSE TRADE OFFS.
BUT AT THE SAME TIME, UM, IT'S DEEPLY CONCERNING THAT OST ENERGY CONTINUES WITH THIS FRAMING AND NARRATIVE THAT WE HAVE TO PICK AFFORDABILITY OR PICK SUSTAINABILITY OR PICK RELIABILITY.
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AND, UH, MUCH OF OUR POLICIES, THAT'S JUST NOT TRUE.WE NEED TO LEAD WITH EQUITY, WHICH MEANS WE DON'T BUILD A NEW GAS PLANT, WHICH OF COURSE IS PROBABLY GONNA GO INTO EAST AUSTIN.
AND IT MEANS THAT THOSE STRATEGIES THAT ADDRESS ALL THREE AT ONCE, WE HAVE TO PRIORITIZE, AND THAT'S WHAT WE NEED TO DO FIRST.
UH, AND SO, YOU KNOW, I WANTED TO HAMMER THAT HOME IN PARTICULAR.
WEBER'S PRESENTATION, I WANTED TO POINT OUT SLIDE FOUR, UM, THAT SORT OF FEARS A, IT FEELS A BIT ALARMIST TO ME.
IT POINTS OUT, YOU KNOW, WITH, UH, UNPRECEDENTED GROWTH FROM EV DEMAND IN PARTICULAR, IT SAYS WE COULD HAVE AN ESTIMATED PEAK OF 7,800 MEGAWATTS.
UH, YOU KNOW, HIS OTHER SLIDES SHOW THANK YOU, 3,400.
POINT THAT OUT, MS. WHITE, THAT THAT'S NOT REALISTIC.
CAN I DISTRIBUTE SOMETHING? UM, THE, UH, YOU CAN GIVE 'EM TO AMY.
UH, CHAIR, POOL AND, AND COUNCIL MEMBERS.
UM, I'M GONNA, UH, TALK TO YOU FOR A FEW MINUTES ABOUT THE SOLAR STANDARD OFFER PROGRAM THAT YOU'LL BE, UH, RECEIVING A PRESENTATION ON TODAY.
AND I THINK, UH, PROBABLY VOTING FOR IN THE, UH, UM, IN THE NEXT, UH, TWO TO THREE WEEKS.
UM, THIS PROGRAM MIGHT AT FIRST APPEAR LIKE ANOTHER SMALL ADDITION TO AUSTIN ENERGY'S, UM, ALREADY SUCCESSFUL LOCAL SOLAR PORTFOLIO.
WHILE IT IS AN ADDITION, I DON'T THINK THAT IT SHOULD BE SMALL.
THIS PROGRAM ABSOLUTELY HAS THE POTENTIAL TO UNLOCK A CLEAN ENERGY FUTURE FOR AUSTIN ENERGY.
WE'VE REPEATEDLY HEARD THAT AUSTIN ENERGY NEEDS LOCAL GENERATION, AND FRANKLY, THERE ARE NOT THAT MANY OPTIONS FOR LOCAL GENERATION, RIGHT? WE'VE HEARD THAT WE CAN BUILD A GAS PLANT OR HYDROGEN PLANT, WE CAN BURN SOMETHING, WHICH WE KNOW AT THE VERY LEAST IS GONNA CONTRIBUTE TO OUR LOCAL AIR POLLUTION ISSUES.
WE DON'T NECESSARILY HAVE GOOD, UH, LOCAL GEOTHERMAL RESOURCE AND EVEN UTILITY SCALE.
SOLAR IS GONNA BE REALLY HARD TO COME BY BECAUSE OF LAND VALUES.
WHAT DO WE HAVE A LOT OF, WE HAVE A LOT OF ROOFTOPS WITH A LOT OF SOLAR POTENTIAL ON THEM, THOUSANDS OF MEGAWATTS.
AND THAT THIS PROGRAM HAS THE POTENTIAL TO UNLOCK THAT RESOURCE FOR US BY ENABLING DEPLOYMENT OF SOLAR ON THOSE ROOFTOPS WITHOUT, UH, REQUIRING THE PROPERTY OWNER TO MAKE THE INVESTMENT, WHICH IS AN OBVIOUS BARRIER FOR BARRIER FOR MANY RESIDENTIAL, UH, PROPERTY OWNERS, BUT ALSO FOR COMMERCIAL, BECAUSE THERE'S A LOT OF, UM, CHALLENGES THERE IN TERMS OF CAPITAL AND ALSO IN TERMS OF SPLIT INCENTIVE WHERE YOU HAVE RE RENTAL PROPERTIES.
SO THIS IS AN EXCITING NEW ADDITION.
HOWEVER, THE RATE THAT IS BEING PROPOSED IS WHOLLY INAPPROPRIATE AND TOO LOW TO MAKE THE PROGRAM SUCCESSFUL.
AUSTIN ENERGY, UH, HAS PROPOSED TO USE JUST THE AVOIDED COST PORTION OF THE VALUE OF SOLAR, BUT ONLY OF THE AVOIDED COST CALCULATED BASED ON 2021 VALUES, NOT 22 OR 23, WHICH THEY HAVE THE DATA FOR.
AND YOU'LL SEE THAT ON THE, UM, HANDOUTS THAT I HAVE HERE FOR YOU.
SO YOU'VE, WE ALREADY HAVE, UH, SEEN THE RESOURCE MANAGEMENT COMMISSION RECOMMEND UTILIZING THE FULL VALUE OF SOLAR RATE, WHICH IS UTILIZED FOR BEHIND THE METER INSTALLATIONS.
THAT CALCULATION IS ALSO APPROPRIATE FOR THESE DISTRIBUTED ROOFTOP SOLAR INSTALLATIONS THROUGH THIS PROGRAM.
AT THE VERY LEAST, IF AN AVOIDED COST IS TO TO BE USED, IT SHOULD BE BASED ON CURRENT DATA ON THOSE, SAY 20 22, 20 23 RATES, OR PERHAPS AN AVERAGE OF THE THREE YEARS.
ADDITIONALLY, I WILL REMIND YOU THAT THIS ENERGY IS GOING TO FEED INTO THE COMMUNITY SOLAR PROGRAM, AND THAT THOSE CUSTOMERS THAT SUBSCRIBE TO THE PROGRAM ARE GOING TO BE PAYING A PREMIUM.
WE NEED TO ACCOUNT FOR THAT AND USE THOSE FUNDS APPROPRIATELY.
UH, I AM PAUL ROBBINS SERVING AS VICE CHAIR OF THE RESOURCE MANAGEMENT COMMISSION.
UH, YOUR AGENDA TODAY HAS, UH, CONSIDERATION OF THE SOLAR STANDARD OFFER, WHICH CABO WHITE JUST DISCUSSED, UH, AT THE RESOURCE MANAGEMENT COMMISSION'S LAST MEETING, UM, WE DECIDED TO POSTPONE THE ITEM TO GIVE IT THE TIME AND CONSIDERATION IT DESERVES.
UH, WE ASKED, UH, OUR STAFF LIAISON IF
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WE COULD PASS A RESOLUTION ASKING YOU TO POSTPONE THE PUBLIC HEARING UNTIL WE HAD PROPER TIME TO CONSIDER IT.UH, AND THE STAFF LIAISON ADVISED US THAT SOMEONE COULD COME TO THE OVERSIGHT COMMITTEE AND ASK FOR THE REQUEST IN PERSON, AND I WAS THE ONE THAT HAD THE TIME TO DO IT.
UH, SO, UH, IF POSSIBLE, PLEASE POSTPONE THIS ITEM UNTIL THE PUBLIC HEARING UNTIL AFTER OCTOBER 15TH.
OUR FINAL SPEAKER IS JORGE VIRO.
I'M AN AUSTIN ENERGY RAID BAYER.
I'M HERE TO OPPOSE AUSTIN ENERGY PROPOSAL TO CONSTRUCT A HYDROGEN CAPABLE GAS PLANT AS A BREACH TO A CLEAN ENERGY FUTURE.
THIS IS A VERY QUESTIONABLE INVESTMENT THAT PRIORITIZES A FOSSIL FUEL BASED INFRASTRUCTURE OVER PROVEN EFFICIENT, AND RENEWABLE ENERGY SOLUTIONS.
RATHER THAN INVESTING IN A TECHNOLOGY WITH SUCH A SIGNIFICANT HURDLES, AUSTIN ENERGY SHOULD DOUBLE DOWN ON ENERGY EFFICIENCY AND RENEWABLE ENERGY RESOURCES.
THE STRATEGY, THIS STRATEGY HAVE PROVEN TRACK TRACK OF REDUCING EMISSIONS, LOWERING ENERGY COSTS, AND ENHANCING GREATER RELIABILITY BY FOCUSES ON ENERGY EFFICIENCY, AUSTIN CAN SIGNIFICANTLY REDUCE DEMAND, THEREBY DECREASING THE NEED FOR ADDITIONAL POWER GENERATION.
THIS CAN BE ACHIEVED THROUGH A COMBINATION OF POLICIES, INCENTIVES, AND PROGRAMS THAT ENCOURAGE BUILDING RETROFITS, APPLIANCE UPGRADES, AND BEHA BEHAVIORAL CHANGES.
MOREOVER, ACCELERATING THE DEPLOYMENT OF RENEWABLE ENERGY SOURCE, UH, SOURCES SUCH AS SOLAR, WIND, POWER, AND BATTERY STORAGE IS A MORE DIRECT AND EFFECTIVE PATH TO DECARBONIZATION.
THESE TECHNOLOGIES HAVE BECOME INCREASINGLY AFFORDABLE AND ACCESSIBLE, AND THE INTEGRATION INTO THE GRID IS WELL UNDERSTOOD.
THE HYDROGEN CAPABLE GAS PLAN REPRESENT A RISKY AND EXPECTING GAMBLE ON A TECHNOLOGY THAT IS IN STILL ITS INFANCY.
IT IS A DESTRUCTION FROM THE URGENT NEED TO ADDRESS CLIMATE CHANGE AND BUILD A SUSTAINABLE ENERGY FUTURE.
INSTEAD OF PURSUING THIS UNPROVEN AND COSTLY APPROACH, AUSTIN ENERGY SHOULD FOCUS ON PROVEN COST EFFECTIVE SOLUTIONS THAT DELIVER IMMEDIATE BENEFITS TO THE COMMUNITY.
BY PRIORITIZING ENERGY EFFICIENT AND RENEWABLE ENERGY, AUSTIN CAN LEAD THE WAY IN CREATING A CLEAN, RELIABLE, AND AFFORDABLE ENERGY SYSTEMS FOR GENERATIONS TO COME.
I AM VERY ENCOURAGED BY THE NEW AUSTIN ENERGY SOLAR STANDARD OFFER PROGRAM.
THIS IS VERY MUCH THE WAY TO MOVE FORWARD THAN A NEW GAS PLAN.
HOWEVER, FOR THIS PROGRAM TO BE AS EFFECTIVE AS IT CAN BE, IT NEEDS TO PAY A REASONABLE GENERATION RATE TO THE COMPANIES AND INDIVIDUALS PREPARED TO INVEST IN IT.
IT IS DIFFICULT TO UNDERSTAND AND JUSTIFY WHY AUSTIN ENERGY IS PLANNING TO PAY SIGNIFICANTLY LOWER RATE THAN IT PAYS TODAY TO EXISTING RESIDENTIAL SOLAR CUSTOMERS.
AUSTIN ENERGY NEEDS TO BE TRANSPARENT IN ITS PROPOSED RATE CALCULATIONS, AND IF SUCCESSFUL, THE SOLAR STANDARD OFFER PROGRAM WILL NOT ONLY PREVENT AUSTIN FROM EXPERIENCING THE HARM, HARMFUL EFFECTS OF ADDITIONAL POLLUTION, BUT WILL E STABILIZE THE AUSTIN ENERGY COSTS BY ELIMINATING FLUCTUATIONS IN FUEL COSTS MANAGEMENT OVERHEAD, THE DEPRECIATION AND COST OVERRUN.
THANK YOU, MR. VIRO, THANK YOU FOR BEING HERE.
DO WE HAVE ANY OTHER SPEAKERS? THAT'S IT.
WHO CAME TODAY TO SPEAK TO US? OUR, UH, FIRST
[Approval of Minutes]
ACTION ITEM IS APPROVAL OF MINUTES TO APPROVE THE MINUTES OF THE JULY 16TH, 2024 MEETING OF THE AUSTIN ENERGY UTILITY OVERSIGHT COMMITTEE.UM, COUNCIL MEMBER, UH, UH, CADRE MAKES THE MOTION AND, UH, COUNCIL MEMBER, UH, ELLIS SECONDS, ARE THERE ANY CHANGES OR CORRECTIONS TO THE MINUTES? IS THERE ANY OPPOSITION TO ADOPTING THESE MINUTES? SEEING NONE.
AND, AND I SEE COUNCIL MEMBER KELLY THERE ON THE SCREEN.
[2. General Manager’s Report - Operational Update, Awards & Recognitions]
I THINK YOU ARE NEXT UP FOR THE STAFF BRIEFING AND PROCESS UPDATE ON THE GEN PLAN.I THINK WE'LL HAVE LISA MARTIN, UH, DEPUTY GENERAL MANAGER AND CHIEF OPERATING OFFICER SPEAK TO US ON THAT.
AND THEN LINDA RIFE, PRESIDENT OF RIF LINE, AND DR. MICHAEL WEBER, UT WILL ALSO BE SPEAKING WITH US
[00:30:01]
TODAY.I CAN'T DO TWO THINGS AT ONCE.
WELL, DON'T SAY THAT PUBLICLY.
GOOD MORNING, CHAIR, PAUL, VICE CHAIR VELA MAYOR, COMMITTEE MEMBERS, UH, BOB CONN, GENERAL MANAGER OF AUSTIN ENERGY.
UH, BEFORE WE GET TO OUR BRIEFINGS, I HAVE JUST A BRIEF GENERAL MANAGER'S REPORT I WANTED TO GO THROUGH.
UH, FIRST I WANNA GIVE A PUBLIC THANK YOU TO OUR AUSTIN ENERGY TEAM MEMBERS WHO WORK SAFELY AND QUICKLY RESPOND, OR, UH, OVER THE LAST MONTH WHEN THEY RESPONDED TO THE OUTAGES TO THE TWO RELATED TRANSFORMERS IN EAST AND SOUTHWEST AUSTIN AND THE SUBSTATION FIRE IN NORTHEAST AUSTIN.
IN EACH CASE, THE CREWS RESPONDED AND REROUTED POWER TO NEARBY CIRCUITS, RESTORING POWER TO THE COMMUNITY WITHIN A FEW HOURS.
AND THAT WAS EVEN BEFORE THEY PUT A PERMANENT SOLUTION IN PLACE.
AND I WANT TO THANK ALL OF YOU, THE MAYOR AND COUNCIL MEMBERS FOR YOUR LEADERSHIP AND AMPLIFYING AUSTIN ENERGY'S MESSAGE TO THE COMMUNITY AND FOR THEIR CONSERVATION EFFORTS.
WE, ESPECIALLY IN THE SOUTHWEST AREA, UH, DISTRICT 10, COUNCIL MEMBER ELLIS, WE ASKED PEOPLE TO CONSERVE, I THINK IT WAS 109 DEGREES THAT DAY, AND WE WERE A LITTLE NERVOUS ABOUT, UH, REROUTING TO OTHER CIRCUITS, BUT IT WORKED OUT.
AND ONCE PEOPLE HAD THEIR POWER RESTORED, EVERYTHING WORKED OUT, UH, AWAITING THE PERMANENT SOLUTION, WHICH WE PUT IN PLACE A FEW DAYS LATER.
THE NEXT THING I WANNA TALK ABOUT IS OUR DEMAND RESPONSE PROGRAM AND CITY FACILITIES.
THE DEMAND RESPONSE PROGRAM HELPS SAVE ENERGY DURING PEAK TIMES.
AUSTIN ENERGY HAS SEVERAL DEMAND RESPONSE PROGRAMS, INCLUDING FOR RESIDENTIAL AND FOR COMMERCIAL CUSTOMERS.
TODAY I'D LIKE TO FOCUS ON THE COMMERCIAL PROGRAM, AND ESPECIALLY ENROLLING CITY OF AUSTIN BUILDINGS IN IT KIND OF LEAD BY EXAMPLE.
RIGHT? IN APRIL, THE CITY COUNCIL PASSED A RESOLUTION DIRECTING CITY BUILDINGS BEING ENROLLED IN AUSTIN ENERGY'S COMMERCIAL DEMAND RESPONSE PROGRAM.
WE'VE BEEN WORKING WITH OTHER CITY DEPARTMENTS TO IDENTIFY ABOUT 250 CITY FACILITIES THAT COULD PARTICIPATE IN DEMAND RESPONSE, WHICH COULD ADD UP TO NEARLY FIVE MEGAWATTS OF ENERGY SAVINGS DURING THE DEMAND RESPONSE EVENT.
THEY HAVE AN INCREASE THE CURRENT COMMERCIAL DEMAND RESPONSE PORTFOLIO BY ABOUT 30%.
UH, AT OUR ALL TIME PEAK, UH, AUSTIN ENERGY CUSTOMERS USE A LITTLE MORE THAN 3000 MEGAWATTS OF ENERGY.
OUR TEAM IS CONDUCTING SITE ASSESSMENTS NOW, WHICH COULD FURTHER REFINE ELIGIBLE FACILITIES.
SO WE MAY NOT HIT THE 250, WE'LL JUST HAVE TO SEE WHAT MAKES MAKES SENSE.
ASSESSMENTS SHOULD BE COMPLETED BY THE END OF OCTOBER, AND WE HOPE TO HAVE ENROLLMENT DONE BY THE END OF THE YEAR WITH FULL IMPLEMENTATION IN THE SPRING, CONSISTENT WITH YOUR, YOUR RESOLUTION THAT YOU PASSED.
THE OTHER THING I'D LIKE TO MENTION IS THE PANO AI.
UH, AUSTIN ENERGY AND THE AUSTIN FIRE DEPARTMENT HAVE PARTNERED TO FULLY IMPLEMENT AN ADVANCED AI DRIVEN WILDFIRE DETECTIVE SYSTEM ACROSS OUR ENTIRE 437 MILE SQUARE AREA.
SO YOU'VE PROBABLY SEEN SOME OF THE STORIES RECENTLY THAT WE'VE, WE'VE RUN ON THAT.
THIS STATE OF THE ART SYSTEM USES 13 ULTRAHIGH DEFINITION, 360 DEGREE CAMERAS AND ADVANCED AI TO TRACK POTENTIAL WILDFIRES.
THE PANO AI SYSTEM SCANS FOR SMOKE, LOCATES THE FIRES, DELIVERS INFO TO LOCAL AUTHORITIES AND THE FIRE DEPARTMENTS TO QUICKLY ADDRESS AND CONTAIN THE THREAT.
AND WE HAVE TROUBLESHOOTERS THAT ARE READY TO GO OUT AND DO WHATEVER HAS TO BE DONE TO, TO TAKE CARE AND REDUCE THE RISK.
THIS REALLY DETECTION SUPPORTS US TO MAKING CRITICAL DECISIONS SUCH AS INITIATING NECESSARY POWER, SHUTOFFS, AND ACTIVE FIRE CONDITIONS IN AN AIR OF HOTTER, DRIER SUMMERS.
THIS TECHNOLOGY LETS US ACT QUICKLY AND MORE EFFECTIVELY FOR THE SAFETY OF OUR COMMUNITY.
SO LET ME SWITCH OVER FOR A SECOND TO THE EIDE EBAY ERE REBATE, UH, PROGRAM.
AUSTIN ENERGY'S ELECTRIC VEHICLES AND EMERGING TECHNOLOGIES TEAM RECENTLY WON THE BIKE TEXAS CHAMPION AWARD AT THE TEXAS TRAILS AND ACTIVE TRANSPORTATION CONFERENCE.
OUR ELECTRIC RIDE, OR EIDE REBATE PROGRAM HAS ISSUED MORE THAN 4,000 E-BIKE REBATES TO THE AUSTIN COMMUNITY.
IN JANUARY OF 23, WE DOUBLED OUR INCENTIVES AND ADDED A LIMITED INCOME OPTION TO MAKE E MOBILITY MORE ACCESSIBLE AND AFFORDABLE TO EVERYONE.
SO ANYBODY IN OUR CAT PROGRAM IS ELIGIBLE FOR THIS REBATE.
THERE ARE MANY FORMS OF ELECTRIC ALTERNATIVE TRANSPORTATION, E-BIKES, SCOOTERS, MOPEDS MOTORCYCLES, ALL OF WHICH ARE ELIGIBLE FOR AUSTIN ENERGY E RIDE REBATES.
SO FINALLY, THE LAST THING I WANNA TALK ABOUT
[00:35:01]
IS OUR VALUE OF PUBLIC POWER CAMPAIGN.IT'S THINGS LIKE EIDE REBATES AND MAKE AUSTIN ENERGY SO MUCH MORE THAN JUST ANOTHER ELECTRIC UTILITY.
BEING A PUBLIC POWER UTILITY BRINGS MORE VALUE TO OUR COMMUNITY.
IT'S, WE ARE A PUBLIC POWER UTILITY.
WE DO A LOT MORE THAN OTHER ELECTRIC UTILITIES FROM REBATE ENERGY SAVINGS TO GREEN BUILDING TO CUSTOMER ASSISTANCE PROGRAMS. WE THOUGHT A CAMPAIGN ON THE VALUE OF PUBLIC POWER WAS IN ORDER.
SO AUSTIN ENERGY HAS LAUNCHED A SERIES OF SHORT VIDEOS IN ENGLISH AND IN SPANISH, INVITING CUSTOMERS TO DISCOVER HOW AUSTIN ENERGY IS POWERING OUR COMMUNITY.
I THINK WE HAVE ABOUT A ONE MINUTE VIDEO THAT WE'RE GONNA PUT UP.
AUSTIN ENERGY IS YOUR COMMUNITY OWNED ELECTRIC UTILITY, BRINGING POWER TO OUR VIBRANT CITY FOR MORE THAN 125 YEARS.
SINCE 1895, WE'VE BEEN POWERING THE GREATER AUSTIN AREA, LIGHTING UP HOMES, SCHOOLS, HOSPITALS, AND BUSINESSES, AND NOW SERVE MORE THAN HALF A MILLION CUSTOMERS EVERY SINGLE DAY.
BUT WE'RE NOT JUST AN ELECTRIC UTILITY.
AS COMMUNITY MEMBERS, WE CARE DEEPLY ABOUT THIS EVER-CHANGING CITY WE CALL HOME AS A PUBLIC POWER UTILITY.
WE ARE INTEGRATED INTO THE LIFE OF THIS COMMUNITY, ALL THE WAY TO MAKING SURE THAT BALLPARKS ARE LIT ALL THE WAY TO SMALL BUSINESSES, UH, RUNNING COMMERCE TO THE LAST LIGHT THAT GOES OFF.
UH, IN THESE COMMUNITIES WHERE A PARENT IS READING A BOOK TO THEIR YOUNG CHILD, WE ARE INTEGRATED INTO THAT BY THE POWER THAT WE PROVIDE.
BEING COMMUNITY OWNED MEANS MORE THAN JUST KEEPING THE LIGHTS ON.
WE REINVEST IN PUBLIC SPACES AND SERVICES LIKE PARKS, POOLS, LIBRARIES, AND PUBLIC SAFETY, ALL WHILE MAINTAINING SOME OF THE LOWEST RATES IN THE LONE STAR STATE.
FROM WIND ENERGY AND SOLAR SOLUTIONS TO ENERGY EFFICIENCY AND ELECTRIC VEHICLES, WE'RE LEADING THE CHARGE TOWARDS A SUSTAINABLE FUTURE, CONNECTING YOU WITH INNOVATIVE SOLUTIONS EVERY STEP OF THE WAY.
AND WITH OUR CUSTOMER ASSISTANCE PROGRAM, WE MAKE SURE EVERYONE HAS EQUAL ACCESS TO ESSENTIAL UTILITY SERVICES.
AS A PUBLIC POWER UTILITY, WE ANSWER TO YOU THE PEOPLE WE SERVE, AND WE ARE COMMITTED TO PROVIDING CLEAN, AFFORDABLE, RELIABLE ENERGY AND EXCELLENT CUSTOMER SERVICE.
DISCOVER MORE ABOUT AUSTIN ENERGY AND HOW WE ARE POWERING OUR COMMUNITY.
[3. Staff briefing and process update on the Resource, Generation, and Climate Protection Plan by Lisa Martin, Deputy General Manager and Chief Operating Officer, Lynda Rife, President of Rifeline, and Dr. Michael Webber of the University of Texas. Sponsors: Mayor Pro Tem Leslie Pool, Mayor Kirk Watson, and Council Member José ''Chito'' Vela]
TO MS. MARTIN, I THINK STAFF BRIEFING AND PROCESS UPDATE ON THE RESOURCE GENERATION AND CLIMATE PROTECTION PLAN.ALSO, JOINING HER WILL BE LINDA RIF AND DR. MICHAEL WEBER.
GOOD MORNING, CHAIR POOL, VICE CHAIR, VELA MAYOR AND COMMITTEE MEMBERS.
I'M LISA MARTIN, CHIEF OPERATING OFFICER, AND MY GOAL TODAY IS TO PROVIDE YOU WITH A BRIEF STATUS UPDATE BEFORE I SHARE THE FLOOR WITH OUR THIRD PARTY EXPERTS.
BEFORE I GET INTO THE DETAILS OF WHERE WE ARE, I WANNA TAKE A STEP BACK AND REFLECT ON WHAT WE ARE DOING AND THE DIRECTION WE HEARD FROM YOU ABOUT THIS PROCESS.
WITH THIS RESOURCE GENERATION PLAN, WE ARE COOPERATIVELY AND COLLECTIVELY BUILDING A BRIDGE TO OUR ENERGY FUTURE.
BUT WHAT THAT BRIDGE LOOKS LIKE DEPENDS ON THE EFFORT WE'RE UNDERTAKING.
NOW, WE'RE FOCUSED ON CO-CREATION WITH OUR COMMUNITY, WITH THE ELECTRIC UTILITY COMMISSION, AND WITH YOU.
ULTIMATELY, WE WANNA PLAN THAT PROVIDES THE RESOURCES WE WILL NEED TO POWER OUR COMMUNITY INTO THE FUTURE AND KEEP TRUE TO THE VALUES AND SPIRIT THAT MAKE AUSTIN UNIQUELY AUSTIN.
LINDA HAS BEEN SHARING THE COMMUNITY JOURNEY WITH YOU AT EACH UOC MEETING, AND SHE HAS UPDATES TO SHARE IN A FEW MINUTES.
BUT TODAY I WANNA SPEND MY TIME FOCUSING ON THE COLLABORATION WITH THE ELECTRIC UTILITY COMMISSION.
THESE ARE YOUR REPRESENTATIVES WHO HAVE THE INTEREST AND CAPACITY TO DIVE DEEPLY INTO THIS WORK WITH US.
ONE OF THE MORE COMPLEX ASPECTS OF RESOURCE PLANNING IS WHAT WE OFTEN REFER TO AS MODELING WORK.
WHAT I MEAN BY THAT IS THE QUANTITATIVE ANALYSIS PERFORMED TO HELP INFORM THE DECISIONS YOU'LL HAVE TO MAKE.
I WANNA BE CLEAR THAT A MODEL DOES NOT SPIT OUT THE PLAN.
IT DOES NOT GIVE YOU THE ANSWER, BUT IT PROVIDES GOOD INFORMATION TO CONSIDER WHEN CREATING THE PLAN.
MODELING WORKS LIKE A SIMULATION.
YOU HAVE INPUTS, YOU PUT 'EM INTO A FRAMEWORK, YOU DO SOME COMPUTATIONS, AND YOU GET OUTPUTS.
ONE OF THE INPUTS SHOWN HERE IS AN ORANGE.
EACH PORTFOLIO IS A SET OF TECHNOLOGIES, COULD BE DEMAND RESPONSE, BATTERIES, LOCAL SOLAR, PEAKERS, WIND, OR SOLAR PPAS.
EACH OF THOSE TECHNOLOGIES ARE IN A CERTAIN QUANTITY, AND WE ASSESS THOSE THROUGH A MODEL THAT SIMULATES THE NEXT 10 YEARS TO DATE.
WE HAVE 17 PORTFOLIOS THAT WE'RE STUDYING.
SOME OF THEM ARE FROM AUSTIN ENERGY, SOME OF THEM ARE FROM A THIRD PARTY ANALYTICS FIRM, AND SOME OF THEM CAME DIRECTLY FROM THE ELECTRIC UTILITY COMMISSION.
THE RESULTS OF THE MODELING WORK ARE THE OUTPUT METRICS THAT HELP DESCRIBE THE TRADE-OFFS ASSOCIATED WITH
[00:40:01]
EACH PARTICULAR MIX OF TECHNOLOGIES.THE METRICS ARE SHOWN UP HERE IN BLUE.
THEY'RE THINGS LIKE COST OR BILL IMPACT, EMISSIONS AND RELIABILITY RISK HOURS.
WE ALSO CALCULATE LIQUIDITY RISK AND ELECTRICITY BURDEN.
NO ONE MIX OF TECHNOLOGIES WILL PROVIDE THE BEST OUTCOME IN ALL OF THOSE CATEGORIES.
SO WE HAVE TO FIND THE DIRECTION THAT BEST ALIGNS WITH OUR COMMUNITY'S VALUES AND PRIORITIES.
EVERY UTILITY THAT DOES RESOURCE, UH, THAT DOES A RESOURCE PLAN, DOES MODELING WORK.
IT'S PRETTY CORE TO THE PROCESS.
AS SUCH, WE'VE BEEN WORKING CLOSELY WITH THE ELECTRIC UTILITY COMMISSION ON THE INPUTS AND ON THE FRAMEWORK.
EUC HAS GIVEN US FEEDBACK AND WE'VE DISCUSSED IT, AND WE'VE INCORPORATED IT, AND NOW WE'RE RUNNING THE MODEL.
IN MANY CASES, THE PORTFOLIOS THAT WE'RE STUDYING ARE EDGE CASES.
THEY'RE PURPOSEFULLY DEFINED TO HELP US UNDERSTAND THE BOUNDARIES SO THAT WE HAVE A BETTER IDEA OF THE SPACE WE'RE WORKING WITHIN.
AT THE NEXT FEW EUC MEETINGS, WE'LL REVIEW THE OUTPUTS WITH THE COMMISSIONERS.
AND ALL OF THIS IS IN PREPARATION OF COMING TO YOU.
LATER THIS YEAR, WE'LL WORK WITH THE EUC TO REFINE THE TECHNOLOGIES AND THE PORTFOLIOS TO FIND A BETTER MIX WITH THE INTENT OF GETTING A MORE ACCEPTABLE SET OF TRADE-OFFS.
THIS COLLABORATION AND ITERATIVE APPROACH IS BAKED INTO THE TIMELINE AND SHOULD MAKE FOR A BETTER RESULT OVERALL.
AND WE'RE INCORPORATING COMMUNITY FEEDBACK ALL ALONG THE WAY.
SO HERE WITH ME TODAY TO TALK MORE ABOUT THE COMMUNITY FEEDBACK IS LINDA RIF AND THEN FOLLOWING LINDA, DR. MICHAEL WEBER IS BACK PER YOUR REQUEST TO FOLLOW UP ON THE INSIGHTS HE HAS RELATED TO THE WORK WE ARE UNDERTAKING ON THIS RESOURCE GENERATION AND CLIMATE PROTECTION PLAN TO 2035.
GOOD MORNING, LINDA RIFE WITH LIFELINE.
WE SPECIALIZE IN COMMUNITY ENGAGEMENT, UM, PROCESSES.
AND SO, UM, WE'VE, I'M REPORTING OUT TODAY ON THE LAST TWO WORKSHOPS.
UM, BUT WANTED TO, TO WALK US THROUGH THAT.
WE'VE GOT SOME BIG TAKEAWAYS AND I'LL TALK IN MORE DETAIL ABOUT THAT.
BUT RELIABILITY IS THE COMMUNITY'S TOP PRIORITY ACROSS THE BOARD.
WE HEARD IT IN MULTIPLE DIFFERENT WAYS, AND I'LL TALK ABOUT HOW WE SLICE THAT DATA TO CONTINUE THAT THAT CAME UP.
UM, WHEN YOU LOOK AT TRADE-OFFS, UM, EQUITY CONT CONTINUES TO BE A MAJOR THEME IN DISCUSSION POINTS.
WE SPENT A BIG CHUNK OF THE MEETING TALKING ABOUT EQUITY AND HOW THAT PLAYS OUT INTO THE RESOURCE PLAN.
UM, THE IMPACTS OF OUT OUTAGES CAN BE DETRIMENTAL TO THE, UH, VULNERABLE COMMUNITIES.
UM, IS WE HEARD SOME STORIES ABOUT ALL OF THAT, AND WE HEARD A LOT OF PRAISE AT AUSTIN.
ENERGY'S ENVIRONMENTAL SUSTAINABILITY LEADERSHIP SHOULD BE APPLAUDED AND THAT THEY ARE REALLY APPRECIATIVE OF THE WORK THAT WAS DONE ON THAT.
IF YOU RECALL, THIS WORKSHOP GROUP THAT WE PUT TOGETHER IS VERY DIVERSE.
IT'S GOT PUBLIC CITIZEN AND SIERRA CLUB.
IT ALSO HAS ADAPT, AND IT ALSO HAS THE ASSISTED LIVING COMMUNITY.
IT HAS A A RP, AND IT HAS A STUDENT THAT JUST GRADUATED FROM A ISD.
UM, WE HAVE SMALL BUSINESSES AND LARGE BUSINESSES, SO IT'S A LARGE GROUP OF, OF PEOPLE.
IN WORKSHOP TWO, WE MOSTLY HEARD DR. WEBER SPEAK, AND WE HAD A FEW QUESTIONS.
SO THERE WAS A LOT OF INFORMATION GOING IN.
YOU SHOULD HAVE GOTTEN MEETING MINUTES FROM BOTH WORKSHOP TWO AND THREE IF YOU NEED MORE DETAILS ON THAT.
BUT THE, UH, TOP THEME AND TAKEAWAYS IS THAT ERCOT AND ITS RELATIONSHIP TO AUSTIN ENERGY.
MICHAEL WEBER TALKED ABOUT THE ENERGY MARKETS TRENDS, RESOURCE OPTIONS.
I THINK YOU HEARD THAT SAME THING.
WE WERE, UM, THEY WERE A BIT SURPRISED ABOUT HOW ERCOT WORKS.
THAT IT ALL, THERE'S BOTH BENEFITS AND RISK, AND WE DON'T HAVE AS MUCH CONTROL IN THE PROCESS AS I WOULD'VE THOUGHT BEFORE.
LEARNING ALL OF THIS AND THE DECISIONS WE MAKE FOR THE RESOURCE GENERATION PLAN WILL AFFECT THE TOOLS AVAILABLE IN THE FUTURE TO MINIMIZE RISK, RISK AND MAXIMIZE BENEFITS.
IN WORKSHOP THREE, WE REALLY SPENT THE TIME LISTENING TO THE STAKEHOLDERS AND REALLY LETTING THEM TELL US WHAT THEY NEED TO DO.
AND WE DID EXPLORE SOME TRADE-OFFS BETWEEN AFFORDABILITY, RELIABILITY, AND ENVIRONMENTAL SUSTAINABILITY.
AND THEN DISCUSSED EQUITY AS IT RELATES TO ALL THREE OF THOSE.
SO THE FIRST THING WE DID IS WE ASKED THEM INDIVIDUAL SURVEY QUESTIONS WHEN THEY WALKED IN THE DOOR, AND WE ASKED THEM ON EACH ONE OF THE IDEAS, UM, IT'S AN IMPACT TO YOU AND AN IMPACT TO YOUR ORGANIZATION.
WHEN WE ASKED ABOUT RELIABILITY ON IMPACT TO YOU, WE HEARD MINIMAL, INCONVENIENT, ANNOYING.
BUT WHEN WE TALKED ABOUT IMPACT TO YOUR ORGANIZATION, WE HEARD LOSS OF REVENUE, DAMAGE TO EQUIPMENT, INCONVENIENCE, ENDANGER OUR RESIDENTS, UM, EIGHT HOURS, SOMEWHAT SUBSTANTIAL.
AND THEN, UH, IT BECAME KIND OF MORE AND MORE IMPORTANT IN 48 HOURS.
FINANCIAL IMPACTS DEVASTATING, RELOCATE NO WORK.
AND SO RELIABILITY HAD SOME WORDS THAT WERE PRETTY POWERFUL IN THAT INDIVIDUAL SURVEY.
WHEN WE ASK ABOUT AFFORDABILITY IMPACTS, WE ASK ABOUT ONE TO $5 PER MONTH.
AND THEN FIVE TO $10 PER MONTH IMPACTS YOU.
MINIMAL AND CONSEQUENTIAL VERY LITTLE MODEST IMPACTS.
BUT IT REALLY LOOKS AT THE, THE SCALE.
UH, AND LOW INCOMES WERE ALREADY BURDENED.
SO IN THAT PROCESS, WE HEARD SOME EQUITY OUTPUTS THAT WERE COMING
[00:45:01]
THROUGH THAT WHEN WE GOT TO FIVE TO $10, IT WAS A LITTLE BIT MORE OF AN INDIVIDUAL IMPACT, BUT IT STARTED BECOMING MUCH MORE IMPACTFUL TO THOSE REPRESENTING ORGANIZATIONS.WHEN WE ASK ABOUT ENVIRONMENTAL SUSTAINABILITY WITH THE, WHEN THERE'S A DAY WITH HIGH SMOG, WHAT IS THAT IMPACT? WE HEARD FROM THE INDIVIDUAL FOR EVERYTHING SLIGHTLY AFFECTED TO EXTREMELY AFFECTED.
UM, AND YOU'RE GONNA SEE THAT IN SOME OTHER WORK.
THE ENVIRONMENTAL SUSTAINABILITY HAS A LOT BIGGER RANGE POINTS, UH, IN THAT PROCESS.
AND YOU CAN SEE WHAT THEY HAVE TO DO TO, TO DEAL WITH THE IMPACTS THAT THEY'VE GOT.
SO WE ASK THEM, UM, TO PRIORITIZE THEIR, THESE GOALS.
UM, I WAS TALKING TO SOMEONE ABOUT AFFORDABILITY, SUSTAINABILITY, AND RELIABILITY.
AND IT'S, AND WAS TOLD IT'S NOT A THREE-LEGGED STOOL.
THERE'S GRAHAM CRACKERS, THERE'S MARSHMALLOWS, THERE'S CHOCOLATE.
SOME PEOPLE LIKE A LOT MORE MARSHMALLOWS THAN CHOCOLATE.
OTHERS HA NEED A LITTLE MORE CHOCOLATE THAN MARSHMALLOWS.
UM, SOME PEOPLE LIKE, YOU KNOW, CINNAMON GRAHAM CRACKERS AND WERE WILLING TO SPAY PAY EXTRA MONEY FOR THAT.
SO WHEN YOU LOOK AT THAT TRADE OFF, THERE'S NO RIGHT OR RIGHT ANSWER THERE.
THERE'S A PERSONAL PREFERENCE.
SO WHEN I, IF I WERE ASKED THESE QUESTIONS, IF I WERE LOOKING AT ME, ME MYSELF, CLEAN WOULD BE REALLY IMPORTANT TO ME.
I DON'T LOSE
BUT WHEN I'M THINKING ABOUT MY PARENTS, UH, THEY'RE 90 YEARS OLD, AND RELIABILITY WAS HUGE TO THAT.
SO THERE'S NO RIGHT OR WRONG ANSWERS HERE IS THERE'S JUST WAYS THAT WE NEED TO LOOK AT THAT DIFFERENTLY.
SO WHAT WE DID IS WE ALLOCATED THESE, AS YOU CAN SEE, JELLY BEANS IN THE PICTURE.
SO YOU TO MAKE A, SOME MORE, YOU HAVE TO GRAHAM CRACKERS, CHOCOLATE AND MARSHMALLOWS.
AND SO YOU HAD TO START OUT WITH FIVE BEANS, BUT THEN YOU HAD ANOTHER 10 BEANS YOU COULD PUT WHEREVER YOU WANTED.
SO THAT COULD BE FIVE IN ENVIRONMENTAL SUSTAINABILITY AND FIVE IN RELIABILITY, AND NOTHING IN AFFORDABILITY.
SO THE FIRST THING WE DID IS ALLOW AN INDIVIDUAL ALLOCATION.
AND WHEN PEOPLE PUT THEIR JELLY BEANS TO WORK, THEY RELIABILITY CAME OUT AT 9.21 WHEN WE AVERAGED IT OUT ACROSS EVERYONE WHO ANSWERED.
AND THEN AFFORDABILITY, 7.91 WITH ENVIRONMENTAL SUSTAINABILITY, 7.82, PRETTY, PRETTY CLOSE.
UM, WE ALSO DIVIDED INTO FOUR GROUPS, AND WE ASKED THE GROUPS TO ALLOCATE THEIR ALLOCATION.
AND SO WHEN YOU LOOKED AT THE GROUP ALLOCATION, WHAT YOU SAW THERE WAS IT RANGED AND SO ON.
UM, ON RELIABILITY, IT RANGED PRETTY, PRETTY CLOSE.
THERE'S ONLY A FOUR POINT SPREAD AFFORDABILITY, 8.6 TO SEVEN POINT, UM, SEVEN.
AND THEN ENVIRONMENTAL SUSTAINABILITY, UM, WAS A LITTLE BIT MORE 7.2, 8.2.
UM, SO THAT IT'S A 10 POINT SPREAD.
SO WE, WHEN WE WERE LOOKING AT THIS, THIS JUST BECAME MORE AND MORE IMPORTANT THAT THIS IS HOW THIS DIVERSE GROUP OF STAKEHOLDERS WERE LOOKING AT THESE THREE THINGS.
UM, WHEN WE, THEY DID REPORT OUT COMMENTS, I CAPTURED A FEW, YOU WILL HAVE A LOT MORE IN THE REPORT IF YOU WANNA LOOK AT THAT.
BUT, UM, WE HEARD PERHAPS AUSTIN ENERGY IS NOT SPREADING THE WORD ABOUT THE GREAT JOB THAT'S BEING DONE ALREADY.
WE ALREADY ARE NATIONAL LEADER WITH REGARD TO THE WORK THAT'S BEING DONE WITH AUSTIN ENERGY, WITH RELIABILITY.
IT'S A LIFE AND DEATH SITUATION.
THERE ARE A LOT OF PEOPLE WHO RELY ON OXYGEN, ELECTRIC WHEELCHAIRS AND OTHER MEANS THAT HAVE BECOME MORE AND MORE MANUFACTURED AND AUTOMATED.
THE DANGEROUS CAN BE HIGHER, THE MORE AUTOMATED WE BECOME FOR THE DISABILITY REQUIREMENTS.
YOU DON'T NECESSARILY WANT TO SAY RELIABILITY AT ANY COST, BUT THAT COULD BECOME UN UNAFFORDABLE.
A LACK OF LIABILITY CAN ALSO CONTRIBUTE TO A LACK OF SUSTAINABILITY IF PEOPLE TURN TO PULL POLLUTING BACK UP SOURCES LIKE DIESEL GENERATORS.
UM, WE ALSO TALKED A LOT ABOUT, UM, EQUITY IN THE PROCESS.
AND WHEN THEY DEFINED EQUITY, IT WAS VERY BROAD.
I WAS PERSONALLY SURPRISED BY THAT.
IT WAS, UM, NOT ONLY THE ELDERLY, THE MEDICAL VULNERABLE, BUT RENTERS WAS PART OF THAT.
SO VULNERABLE BECAME PRETTY IMPORTANT.
AND SO WHEN WE ASKED THE QUESTION, AND AGAIN, THIS WAS AN INDIVIDUAL QUESTION, EQUITY CAN MEAN DIFFERENT THINGS TO DIFFERENT PEOPLE.
IF YOU WERE LOOKING AT EQUITY, WHICH ONE OF THE AUSTIN ENERGY MISSION P PILLAR SHOULD BE PRIORITIZED? 10.
SELECTED RELIABILITY AND RESILIENCY.
FIVE AFFORDABILITY AND THREE, SUSTAINABILITY.
UM, WE SHOULD PRIORITIZE ALL THINGS THAT HELP WITH EQUITY.
UM, AND IT, AND WE CAN HAVE IT ALL.
WE SHOULDN'T PRIORITIZE IT ALL, UH, IN THAT.
AND WITH THAT, I KNOW THAT'S PRETTY QUICK, BUT YOU DO HAVE A MUCH LONGER REPORT.
ANY QUESTIONS? ANY QUESTIONS FOR MS. RI? YES.
[00:50:01]
MEMBER AL ALLISON ALTER.UM, ON YOUR SLIDE, UM, WITH THE KEY TAKEAWAYS, YOU SAID, YOU KNOW, AUSTIN ENERGY'S ENVIRONMENTAL SUSTAINABILITY LEADERSHIP SHOULD BE APPLAUDED.
UM, AND THE STAKEHOLDERS ACKNOWLEDGE THE INVESTMENTS IN CLEAN ENERGY AND THEN ITS ADDITIONAL EFFORTS SHOULD PRIORITIZE RELIABILITY AND RESILIENCE.
UM, I I JUST WANNA CLARIFY THAT THAT MEANS THAT YOU CONTINUE TO DO THE SUSTAINABILITY AND OTHER STUFF, BUT YOU ALSO NEED TO PRIORITIZE THOSE.
IT'S NOT, YOU'RE NOT SAYING, OKAY, YOU'RE DONE WITH THIS AND YOU HAVE TO DO THAT.
'CAUSE THERE'S JUST A COUPLE DIFFERENT WAYS TO READ THAT.
YEAH, I, I DIDN'T, I DID NOT HEAR THAT FROM THE COMMUNITY.
I MEAN, I, I THINK LIKE WE TALKED ABOUT THIS MORE AS YOU NEED ALL OF IT, RIGHT? MM-HMM.
BUT THEY SAID, I THINK PART OF THE DISCUSSION ON THE TRADE OFFS WAS WE'RE ALREADY DOING A LOT IN THE ENVIRONMENT.
WE HAVE ISSUES WITH RELIABILITY.
I MEAN, YURI'S NOT THAT FAR BACK.
SO IN THE DISCUSSION, I HEARD THAT'S WHAT I HEARD.
IT WASN'T REPLACED IT, IT WASN'T ANYTHING ELSE.
IT WAS JUST REALLY LOOK AT, HEY, LET'S, LET'S ALL, LET'S LET'S GO TO AWARDS FOR EVERYTHING IN THAT PROCESS.
OKAY? AND THEN, YOU KNOW, LOOKING AT THE DISTRIBUTION, IT WAS NOT A HUGE SPREAD.
UM, SO WHILE I DO BELIEVE THAT WE NEED TO EMPHASIZE RELIABILITY AND RECOGNIZE IT WAS THE TOP, I THINK WE ALSO NEED TO RECOGNIZE THAT THE WAY THE MATH WORKS, THE SPREAD IS REALLY NOT THAT BIG IN BETWEEN THE THREE.
AND IF YOU'D GIVEN THEM SIX JELLY BEANS, I PROBABLY, PROBABLY, IT MIGHT BE CLOSER EVEN THAT, THAT COULD BE, UM, YOU KNOW, BECAUSE PEOPLE MIGHT HAVE PUT THE 2, 2, 2.
SO JUST, JUST IN TERMS OF HOW MUCH WE SHOULD TAKE AWAY FROM THIS, I THINK WE JUST NEED TO MAKE SURE THAT WE UNDERSTAND THAT MATH.
ANY OTHER QUESTIONS? ANY OTHER QUESTIONS? THANK YOU VERY MUCH.
WE HAD A LOT OF QUESTIONS LAST TIME, SO I THINK THE INVITATION WAS TO, TO COME BACK AND MAYBE REPEAT A COUPLE POINTS, ADD A COUPLE NEW POINTS, AND THEN JUST MAKE MYSELF AVAILABLE TO ANSWER QUESTIONS.
SEE IF THE SLIDES ARE COMING UP.
AND I DO HAVE CONTROL UP HERE.
IS THAT RIGHT? THAT'S THE WRONG MINE.
ARE THE ALL BLACK SLIDES, LIKE, UH, WITH THE DARK BACKGROUND, I THINK THEY'RE IN THE DOCUMENT RIGHT AFTER, UM, THE RIGHTLINE PRESENTATION.
I'M A PROFESSOR AT THE OBJ SCHOOL OF PUBLIC AFFAIRS AND THE COCKER SCHOOL OF ENGINEERING.
AT UT I STUDY ENERGY SYSTEMS AND TEACH A LOT OF CLASSES RELATED TO ENERGY.
AND THIS HAS WORKED, UH, I'VE DONE IN COLLABORATION WITH A MASTER STUDENT, EMILY ARNUM AND DR.
GUILE GLASER, A RESEARCH ASSOCIATE, UT AND JUST KIND REPEAT A COUPLE THINGS.
I ALREADY TOLD YOU I JUST BROKE THE CLICKER.
YOU SHOULD NOT TRUST ENGINEERS WITH THESE DEVICES.
UM, LET ME START WITH THIS SLIDE.
I, I THINK THIS SORT OF FASCINATING THAT THERE'S NOT ALWAYS CONSENSUS AND ENERGY, BUT THERE IS SOME CONSENSUS THAT DEMAND FOR POWER WILL INCREASE DEPENDING ON WHO YOU ASK.
UH, THERE'S A LOT OF, I SAY LACK OF CONSENSUS ON HOW MUCH IT WILL INCREASE, BUT THERE'S GENERAL CONSENSUS THAT DEMAND FOR POWER WILL GO UP.
THIS IS A CHART WITH ERCOT FORECAST ON THE LEFT, THE GROWING DEMAND IN POWER IN MEGAWATTS AND ON THE RIGHT, THE GROWING DEMAND FOR ELECTRICITY CONSUMPTION OVERALL IN GIGAWATT HOURS.
AND THIS MIGHT BE KIND OF BREATHLESS PROJECTIONS, UH, I'M NOT SURE THESE NUMBERS EXACTLY RIGHT, BUT CERTAINLY WE CAN EXPECT DEMAND TO GO UP IN TEXAS AND AUSTIN WILL BE NO DIFFERENT.
AND IN PARTICULAR, THE RATE OF GROWTH IN ELECTRICITY CONSUMPTION AND THE RATE OF GROWTH IN POWER DEMAND WILL BE FASTER THAN WHAT WE'VE SEEN IN THE LAST COUPLE OF DECADES.
WE'RE ENTERING NEW TERRITORY AND THAT THE RATE OF GROWTH WILL BE FASTER THAN WHAT WE'VE SEEN OVER THE LAST FEW DECADES.
AND THAT'S THE CONTEXT FOR WHAT WE'RE DEALING WITH RIGHT NOW.
AND SO THAT MEANS THE CHALLENGE OF FOREST OF THE GRID IS TO EXPAND THE GRID TO ACCOMMODATE THIS NEW LOAD.
BUT WE ALSO NEED TO DECARBONIZE AS QUICKLY AS POSSIBLE WHILE OPERATING THE GRID.
IN A WARMING WORLD, THE WARMING WORLD MEANS THAT IT'S HOTTER IN THE SUMMER AND COLDER IN THE WINTER AND WETTER WHEN WE HAVE RAINSTORMS AND DRIER WHEN WE HAVE DROUGHTS AND WINDIER WHEN WE HAVE WINDSTORMS. SO THERE'S MORE OPERATIONAL CHALLENGES TO THE GRID THAN WE HAVE BEFORE, WHILE WE ALSO NEED TO GROW THE GRID AND DECARBONIZE IT.
SO A LOT OF THINGS HAVE TO HAPPEN AT ONCE, AND THAT'S TRUE FOR AUSTIN, BUT TRUE FOR TEXAS AND TRUE FOR THE WORLD, I WOULD SAY.
THIS IS ONE OF SEVERAL SCENARIOS.
WE LOOKED AT, UH, ESTIMATING DIFFERENT TYPES OF DEMAND GROWTH WE MIGHT SEE IN THE AUSTIN ENERGY SERVICE AREA.
I THINK ONE OF THE PRIOR COMMENTERS NOTED THIS ONE MIGHT BE ALARMIST.
THIS IS SORT OF A MAXIMUM CASE SCENARIO.
THIS IS NOT THE CASE THAT I EXPECT TO HAPPEN, BUT IT'S WORTH SORT OF THINKING ABOUT WHAT COULD HAPPEN.
THERE ARE A COUPLE DIFFERENT ELEMENTS TO THIS CHART.
THE BLUE, UM, FROM 2023 AND BEFORE IS HISTORICAL ACTUAL DATA AND THEN GOING FORWARD ARE ALL PROJECTIONS.
SO SOME DIFFERENT TYPES OF ESTIMATES.
THE MAGENTA LINE THERE SHOWS THE GENERATING CAPACITY.
THAT'S HOW MUCH POWER AUSTIN ENERGY CONTROLS DIRECTLY.
AND THE DIFFERENCE BETWEEN THE DEMAND, THE COLOR SHADED AREA ABOVE MAGENTA IS THE AMOUNT OF POWER THAT AUSTINS ENERGY HAS TO BUY FROM THE MARKETS, BUY FROM ERCOT OR BUY
[00:55:01]
FROM OTHER PROVIDERS.AND THAT MAGENTA LINE IS DECREASING IN THE FUTURE AS DIFFERENT POWER PURCHASE AGREEMENTS FOR SAY, WIND AND SOLAR RETIRE OR EXPIRE OR END.
AND SO THAT MISMATCH OR THAT SEPARATION BETWEEN WHAT AUSTINS ENERGY HAS IN TERMS OF SUPPLY AND THE DEMAND IS EXPECTED TO GROW.
IN ADDITION, THE DEMAND SHOULD GROW FOR A VARIETY OF REASONS.
ONE IS JUST ONGOING POPULATION GROWTH AND ECONOMIC GROWTH EFFICIENCY HELPS SLOW THAT RATE OF GROWTH AND EFFICIENCY IS ONE OF THE AREAS OF GREAT SUCCESS FOR THE CITY OF AUSTIN GOING BACK SEVERAL DECADES.
AND THAT EFFICIENCY WILL HELP SLOW THE RATE OF GROWTH OF BLUE.
THEN WE MIGHT ALSO HAVE ADDITIONAL HOME ELECTRIFICATION.
THERE ARE A LOT OF THINGS WE USE ENERGY FOR IN THE HOME THAT AREN'T ELECTRICITY.
FOR EXAMPLE, NATURAL GAS HEATING OR NATURAL GAS COOKING AND NATURAL GAS CLOSE DRYERS, THAT KIND OF THING.
YOU CAN ADD IN SOME DATA CENTERS ABOVE THAT, WE DON'T REALLY KNOW HOW MANY MEGAWATTS OF DATA CENTER DEMAND WILL COME TO AUSTIN, BUT SURELY SOME WILL.
AND, UH, WE ANTICIPATE HUNDREDS OF MEGAWATTS OF NEW DATA CENTER DEMAND COULD BE HIGHER, COULD BE LOWER.
I'LL GIVE AN ANECDOTE THAT ONE NEW COMPUTER AT THE UNIVERSITY OF TEXAS, A RESEARCH COMPUTER THAT WE JUST WON, UH, WILL BE 30 MEGAWATTS, ONE COMPUTER.
IT'S A BILLION DOLLAR COMPUTER.
NOT EVERYONE HAS A BILLION DOLLAR COMPUTER AT THEIR HOME, BUT STILL ONE DATA CENTER WILL BE 30 MEGAWATTS.
WE CAN EXPECT A COUPLE HUNDRED MEGAWATTS OF DATA CENTER GROWTH WITH ARTIFICIAL INTELLIGENCE AND OTHER NEEDS.
AND THEN ON TOP OF THAT ELECTRIC VEHICLE CHARGING.
NOW THIS GREEN SCENARIO HERE IS WHERE IF EVERYBODY PLUGGED IN THEIR ELECTRIC VEHICLE AT THE SAME TIME, THIS IS UNLIKELY TO HAPPEN.
IT IS NOT IMPOSSIBLE, IT IS UNLIKELY.
A LIKELIER SCENARIO IS ABOUT 10% OF PEOPLE WOULD PLUG IN ANY GIVEN TIME.
SO YOU CAN TAKE THAT GREEN WEDGE AND MAYBE DIVIDE IT BY 10 TO GET A MORE TYPICAL SCENARIO.
AND IN THAT CASE, WHAT YOU'LL SEE IS LOAD GROWTH WOULD DOUBLE IN THE COMING DECADES AS OPPOSED TO TRIPLE.
BUT THE BIG WILD CARD IS EV CHARGING ELECTRIC VEHICLE CHARGING WHERE PEOPLE CHARGE AT PEAK TIMES OR WILL THEY HAVE A MANAGED SYSTEM EITHER IN COLLABORATION WITH UTILITY OR SOME THIRD PARTY OR WHATEVER THE SYSTEM IS TO MANAGE THE CHARGING.
SO IT'S NOT ALL HAPPENING RIGHT WHEN WE GET HOME RIGHT IN THE HOTTEST AFTERNOON, HOTTEST HOUR OF THE DAY.
SO THIS IS, UH, UNPRECEDENTED GROWTH.
THAT'S THE MAIN CONTEXT FOR US TO KEEP IN MIND.
THERE'S SEVERAL TAKEAWAYS FOR AUSTIN ENERGY.
I I BASICALLY THINK AUSTIN ENERGY NEEDS TO PREPARE FOR AN ERA OF UNPRECEDENTED GROWTH.
WE HAVE HAD GROWTH IN AUSTIN FOR THE LAST FEW DECADES.
THERE ARE UTILITIES AROUND THE NATION THAT HAVE NOT HAD ANY GROWTH FOR DECADES, AND THEY HAVE TO LEARN HOW TO GROW.
WE ALREADY KNOW HOW TO GROW, BUT WE HAVE TO GROW FASTER.
AND UH, WE HAVE TO SORT OF DEVELOP SOME OF THE MUSCLE MEMORY OF HOW TO DO THAT.
AND I THINK THAT MEANS ALSO ENERGY WILL NEED TO EXPEDITE THE DEPLOYMENT OF A VARIETY OF OPTIONS.
SO ON THE SUPPLY AND DEMAND SIDE, TO ENSURE RESOURCE ADEQUACY, RESOURCE ADEQUACY MEANS YOU HAVE ENOUGH SUPPLY TO MEET THE DEMAND.
IF YOU DON'T HAVE ENOUGH SUPPLY TO MEET DEMAND, THEN YOU HAVE LOAD SHEDDING OR PEOPLE DON'T GET LOAD.
SO THIS IS, UH, THE RELIABILITY CRISIS PEOPLE ARE WORRIED ABOUT OR THAT THEY EXPERIENCE A WINTER STORM URI OR SOME OF THE OTHER CHALLENGES.
SO YOU HAVE TO HAVE A, A MATCHING OR A BALANCING OF SUPPLY AND DEMAND.
AND THERE ARE A VARIETY OF THINGS YOU CAN BUILD THAT PROVIDE ELECTRICITY.
THEY COULD BE THERMAL POWER PLANTS THAT USE HEAT, LIGHT, GEOTHERMAL, NUCLEAR COAL, NATURAL GAS, HYDROGEN OR BIOMASS.
AND THEN THERE ARE DEMAND SIDE OPTIONS.
YOU'VE HEARD ABOUT ALREADY SEVERAL PEOPLE TALKING ABOUT ROOFTOP SOLAR, UH, BATTERIES, DEMAND RESPONSE EFFICIENCY.
UH, I DON'T THINK WE NEED TO CHOOSE EITHER OR THIS WE'VE GOT, UH, THINGS WE NEED TO PROVIDE AS SUPPLY AND DEMAND.
AND IF WE DO IT THE RIGHT WAY SHOULD IMPROVE OVERALL SYSTEM OF PERFORMANCE AND LOWER COST FOR CUSTOMERS.
I THINK, AND I CAN TALK MORE ABOUT THAT IF YOU WANT, AND IF WE UPDATE THE FUEL MIX AND ELECTRIFY VEHICLES AND ELECTRIFY FURNACES AND COOKTOPS EMISSIONS WILL GO DOWN.
THIS IS A VERY IMPORTANT POINT.
THE BIGGEST SOURCE OF EMISSIONS IN AUSTIN ENERGY ARE GASOLINE TAILPIPES.
THIS IS OUR NUMBER ONE ENVIRONMENTAL PROBLEM IN THE SERVICE AREA.
AND IF WE CAN ELECTRIFY THOSE VEHICLES, IT HAS VERY DISTINCT ECONOMIC ENVIRONMENTAL BENEFITS.
THE ENVIRONMENTAL BENEFITS AROUND POLLUTION OF EMISSIONS, BUT ALSO NOISE POLLUTION AND OTHER THINGS.
AND IF WE GET GAS FURNACES OUTTA THE HOMES, REPLACE 'EM WITH ELECTRIC HEAT PUMPS, THAT MEANS FEWER FUMES IN THE HOMES.
SO ELECTRIFICATION WILL BE A GOOD ENVIRONMENTAL STORY FOR US, AND IF WE DO IT THE RIGHT WAY, WE'LL ALSO IMPROVE THE EQUITY ELEMENTS YOU'VE ALREADY HEARD ABOUT.
THIS COULD ALSO IMPROVE THE OVERALL FINANCIAL HEALTH UTILITY, WHICH BENEFITS THE CITY BENEFITS, UTILITY BENEFITS EVERYONE WHO LIVES IN THE AREA.
AND, UH, THE KEY LENS THROUGH WHICH THESE OPTIONS SHOULD BE CONSIDERED ARE TRADE-OFFS.
I KNOW THAT WAS A VERY TEXT-HEAVY SLIDE.
I'M HAPPY TO COME BACK TO ANY OF THOSE DURING Q AND A.
LET'S GO A LITTLE BIT MORE INTO THE SUPPLY AND DEMAND OPTIONS ON THE THERMAL, UH, POWER PLANTS.
IF YOU WANT TO USE HEAT TO MAKE ELECTRICITY, WHICH IS THE WAY MOST ELECTRICITY IS MADE, IT'S NOT THE ONLY WAY TO MAKE ELECTRICITY, BUT IT'S A PRETTY COMMON WAY.
THOSE OPTIONS ARE NUCLEAR, COAL, GAS, BIOMASS, BIOGAS, HYDROGEN, THINGS LIKE THAT.
UM, NUCLEAR IS PRETTY TRICKY IN THE AUSTIN ENERGY SERVICE AREA.
GEOTHERMAL IS NOT A GREAT RESOURCE IN THE AUSTIN ENERGY SERVICE AREA.
SO THAT MEANS WE'RE LEFT WITH THINGS LIKE BIO METHANE, GAS TURBINES, OR GAS TURBINES WITH CARBON CAPTURE OR HYDROGEN OR SOMETHING LIKE THAT.
THERE ARE A VARIETY OF TURBINES AVAILABLE OFF THE SHELF NOW FROM MITSUBISHI TO SHEBA, GE, SIEMENS, ET CETERA.
YOU COULD ALSO RENEW, REPLACE, EXPAND, EXPIRE OR SOMETHING WITH, UH, THE POWER PURCHASE AGREEMENTS FOR OUT OF SERVICE AREA, WIND AND SOLAR.
THESE ARE THE LARGE, UH, WIND FARMS MAYBE IN WEST TEXAS OR SOUTH TEXAS OR LARGE SOLAR FARMS. IT'D BE GREAT IF THOSE NEW AGREEMENTS WERE IN LESS CONGESTED AREAS.
CONGESTED MEANING THE TRANSMISSION LINES ARE CONGESTED AND, UH, THAT'S ESPECIALLY AN OPTION WITH SOLAR.
YOU CAN PUT SOLAR IN MORE PLACES THAN WIND AND YOU CAN PICK SOME PLACES WITH LESS TRANSMISSION CONGESTION.
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AN OPPORTUNITY, AS YOU HEARD ALREADY FROM SOME PRIOR SPEAKERS FOR NEW SOLAR AND AUSTIN ENERGY ZONE ESPECIALLY.I WOULD SAY THE LARGE COMMERCIAL SITES, WAREHOUSES AND PARKING LOTS ARE, ARE ESPECIALLY ATTRACTIVE.
AND THEN DEMAND SIDE CONTROLS.
YOU ALREADY HEARD AUSTIN ENERGY'S, UH, ANALYZING THAT FOR CITY OF AUSTIN, UH, FACILITIES.
BUT YOU CAN DO DEMAND RESPONSE, UM, BATTERIES AND OTHER STORAGE SYSTEMS. BATTERIES ARE VERY COMMON.
THERE'S ALSO LIKE THERMAL STORAGE.
YOU CAN MAKE CHILL WATER AT NIGHT TO COOL YOUR BUILDING DURING THE DAY.
UH, THERE ARE DIFFERENT TYPES OF BATTERY CHEMISTRIES THAT LAST LONGER EFFICIENCY CERTAINLY IS A REMAINING OPPORTUNITY.
AND THE RESIDENTIAL ROOFTOP SOLAR.
SO A LOT OF OPTIONS HERE TO CHOOSE FROM.
UH, IF WE DO THIS THE RIGHT WAY, THEN WE REDUCE THE EXPOSURE OF THE UTILITY TO OUT OF SERVICE AREA PURCHASES.
SO WHEN AUSTIN ENERGY DOESN'T HAVE ENOUGH POWER, IT WITHIN ITS CONTROL TO MEET DEMAND, IT HAS TO BUY POWER FROM THE MARKETS.
THAT IS OFTEN NO PROBLEM, BUT SOMETIMES CAN BE QUITE EXPENSIVE IF YOU HAVE A SCARCITY EVENT.
AND PRICES GO UP FROM $20 TO $2,000 FROM MEGAWATT HOUR.
SO THERE'S BULK, UH, GRID PRICE VOLATILITY THAT OS ENERGY IS EXPOSED TO.
AND SO THE MORE IT BUILDS IT UNDER ITS CONTROL OR IN THE SERVICE ZONE WOULD REDUCE THAT EXPOSURE.
AND THERE'S ALSO TRANSMISSION CONGESTION PRICING.
THE TRANSMISSION LINES ARE FULL.
YOU HEARD THAT FROM I THINK OUR LAST SPEAKER.
AND SO ANYTHING WE CAN DO TO AVOID THE LONG HAUL TRANSMISSION REDUCES THAT EXPOSURE FOR THE UTILITY.
AND THEN IF THERE'S DISPATCHABLE POWER, DISPATCHABLE MEANS THINGS YOU CAN TURN ON AND OFF INSIDE THE SERVICE ZONE THAT IMPROVES RELIABILITY FOR CUSTOMERS, PROVIDES VULTURE SUPPORT, FREQUENCY SUPPORT AND OTHER THINGS.
AND BECAUSE OF CHANGES IN FEDERAL LAWS IN 2022 WITH THE INFLATION REDUCTION ACT, SOME OF THOSE POWER PURCHASE AGREEMENTS THAT WERE VERY DESIRABLE 15, 20 YEARS AGO ARE LESS DESIRABLE TODAY.
SO THERE'S A VARIETY OF THINGS WE CAN DO.
EQUITIES YOU HEARD AS A RECURRING THEME.
I WOULD, I WOULD JUST SAY THAT 40 YEARS AGO PEOPLE DIDN'T THINK ABOUT EQUITY WITH POWER PLANTS.
AND NOW WE'RE THINKING ABOUT IT AND EQUITY SHOWS UP IN A LOT OF WAYS.
FENCE LINE POLLUTION IS ONE OF THE CLASSIC WAYS TO THINK ABOUT EQUITY.
WHO SUFFERS THE POLLUTION AND WHO GETS THE BENEFIT FROM THE POWER.
BUT THERE'S ALSO WHO GETS THE JOBS, WHO GETS THE ECONOMIC GROWTH? UH, WHAT IS THE COST OF ELECTRICITY? YOU HEARD FROM RIFLE LINES AS WELL AS RELIABILITY, BUT THERE'S OTHER NUISANCES LIKE NOISE AND SITE POLLUTION AND THAT KIND OF THING.
AND I THINK THOSE STAKEHOLDER WORKSHOPS ARE A GREAT WAY TO GET THAT INPUT ABOUT HOW TO BALANCE THESE DIFFERENT TENSIONS.
A COUPLE ENVIRONMENTAL SUSTAINABILITY CONSIDERATIONS.
I I TOUCHED ON THIS POINT LAST TIME.
WE GOT A LOT OF QUESTIONS ABOUT IT, SO I THOUGHT I WOULD COME BACK TO IT.
THE BIGGEST ENVIRONMENTAL PROBLEM IN THE CITY OF AUSTIN IS GASOLINE TAILPIPES.
AS I MENTIONED, ONE OF THE IRONIES AROUND ELECTRIFICATION IS IF YOU ELECTRIFY YOUR LIGHT DUTY VEHICLES, YOUR CARS, UM, IN THAT ELECTRIC, UH, SOURCE IS EVEN A DIRTY POWER PLANT LIKE A COAL PLANT.
OR GUESS WHAT, THAT'S STILL CLEANER THAN GASOLINE.
AND SO IF WE CAN REPLACE OUR GASOLINE TAILPIPES WITH ELECTRIC VEHICLES, THAT IS AN ENVIRONMENTAL GOOD.
IT REDUCES THE, THE POLLUTION IN THE CITY AREA, BUT IT ALSO SHIFTS THE POLLUTION IN TIME AND LOCATION.
AND SO WE SHIFT THE POLLUTION TO SAY NIGHT TIME IF YOU ARE CHARGING YOUR CAR AT NIGHT AND POLLUTION AT NIGHT IS DIFFERENT THAN POLLUTION DURING THE DAY BECAUSE SOME OF THE POLLUTANTS REACT WITH SUNLIGHT TO FORM PHOTOCHEMICAL SMOG.
AND SO IF YOU HAVE YOUR EMISSIONS AT NIGHT INSTEAD OF DURING THE DAY, YOU HAVE LESS HUMAN EFFECT.
IF YOU HAVE YOUR POLLUTION IN A RURAL AREA INSTEAD OF IN THE CITY AREA, THERE ARE FEWER PEOPLE EXPOSED.
AND IF YOU HAVE YOUR POLLUTION AT THE TOP OF A SMOKE STACK INSTEAD OF AT THE NOSE LEVEL TAILPIPE, YOU ALSO GET MORE DISPERSAL IN THE ATMOSPHERE.
SO THERE'S BEEN A VARIETY OF STUDIES THAT MY TEAM'S DONE WITH SOME OTHERS THAT CHARGING ELECTRIC VEHICLES AT NIGHT IN RURAL AREAS RATHER THAN HAVING GASOLINE TAILPIPE EMISSIONS IN RURAL, IN URBAN DAYTIME AREAS IS VERY DIFFERENT.
AND THAT'S AN IMPORTANT ENVIRONMENTAL GOOD.
AND THEN IF WE CLEAN UP THE SOURCE OF ELECTRICITY, THE BENEFITS ARE EVEN BETTER.
SO ELECTRIC VEHICLES ARE, UH, ENVIRONMENTAL.
I WAS THINK ENVIRONMENTAL PRIORITY FOR AUSTIN.
AND WE HAVE A LOT OF ELECTRIC VEHICLES HERE, LOT GROVE, AND I CAN COME BACK TO THAT POINT IF YOU WANT 'CAUSE IT'S, UH, IT GETS INTO ATMOSPHERIC CHEMISTRY PRETTY QUICKLY.
BUT IT'S INTERESTING THAT EVEN A FOSSIL FUEL POWER PLANT DISPLACING A GASOLINE TAILPIPE HAS DISTINCTLY LOWER EMISSIONS.
I'M TRYING TO MAKE KEY CONSIDERATIONS, UH, FOR POLICY MAKERS.
I'LL HAVE TWO SLIDES ON THIS AND THEN OPEN UP FOR Q AND A.
UH, IN GENERAL, I RECOMMEND AND TEACH THAT TRADE OFFS ARE THE KEY THING.
THERE'S NO ONE OPTION THAT'S ALL BAD OR ONE OPTION THAT'S ALL GOOD.
AND THE KEY IS OPTIMIZE THE GOOD AND MINIMIZE THE BAD.
AND SO YOU'RE BALANCING RELIABILITY, AFFORDABILITY, AND ENVIRONMENTAL SUSTAINABILITY AS YOU HEARD.
BUT ALL WITH THIS LENS OF EQUITY ALONG THE WAY, WHICH IS SOMETHING WE DID NOT CONSIDER DECADES AGO, AS I SAID.
AND WE HAVE TO BE CAREFUL THAT IF WE PUT THE THUMB TOO HARD ON THE SCALE FOR RELIABILITY, WE MIGHT EXACERBATE POLLUTION.
AND WE PUT OUR THUMB ON THE SCALE TOO MUCH ON CLEANLINESS.
WE MIGHT, UM, EXACERBATE PROBLEMS ON RELIABILITY.
THAT'S THE TENSION WE HAVE TO MANAGE.
AND, AND WE DON'T HAVE TO CHOOSE ONE OF THE THREE.
YOU JUST HAVE TO OPTIMIZE AROUND ALL THREE.
AND THEN MY LAST COMMENT, THIS IS, UH, PARDON ME, BUT A LITTLE BIT OF, UH, MICHAEL WEBER SOAPBOX, BUT THIS IS WHAT I TEACH IN MY ENERGY POLICY CLASSES, THAT HISTORICALLY ENERGY POLICY IS MOST EFFECTIVE WHEN IT IS STANDARDS BASED RATHER THAN OVERLY PRESCRIPTIVE.
IF, UH, THE REGULATORS OF THE POLICYMAKER SAY, HERE'S THE STANDARD, I WISH YOU TO MEET A LABOR STANDARD, ENVIRONMENTAL STANDARD, RELIABILITY STANDARD.
YOU FIGURE OUT HOW TO MEET IT, THAT TENDS TO GET YOU A BETTER RESULT THAN IF THE POLICYMAKER SAYS YOU MUST USE THIS OR CANNOT USE THAT.
AND LET ME GIVE AN EXAMPLE OF EACH.
UH, WITH ACID RAIN MITIGATION WITH THE
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CLEANER ACT AMENDMENTS IN THE EARLY NINETIES, THIS WAS A BIPARTISAN, UH, ESTABLISHMENT OF NEW LAW WITH A DEMOCRATIC CONGRESS AND REPUBLICAN PRESIDENT GEORGE HW BUSH.UH, UTILITIES ARE TOLD TO CLEAN UP THEIR ACT AROUND SMOKE STACKS, ESPECIALLY FOR THE ACID FORMING GASES.
BUT THEY WERE NOT TOLD HOW TO DO IT.
THEY JUST WERE TOLD, YOU NEED TO GET CLEANER AND YOU HAVE OPTIONS.
AND THE OPTIONS INCLUDED CLEANER COAL, WESTERN COAL THAT WAS CLEANER, ADDING SCRUBBERS, SWITCHING TO NATURAL GAS, TURNING OFF THE POWER PLANT, ADDING MORE EFFICIENT TURBINES, THAT KIND OF THING.
AND THEN THE GEORGE W. BUSH ADMINISTRATION IN 2007, 2008, HIS EPA EVALUATED THE LEGISLATION SIGNED BY HIS FATHER AND CONCLUDED THAT THE BENEFIT TO COST RATIO WAS 40 TO ONE.
THAT ENDED UP BEING VERY BENEFICIAL FOR EVERY BILLION DOLLARS WE SPENT ON MITIGATING ACID.
RAIN HAD $40 BILLION OF BENEFIT AND IT WAS MUCH CHEAPER AND EASIER TO SOLVE IT THAN WE THOUGHT.
LIKE WE SOLVED IT FASTER THAN WE THOUGHT BECAUSE OF THE FLEXIBILITY.
IF POLICY SAY YOU MUST DO THIS OR CAN'T DO THAT, THAT TENDS TO BE LESS EFFECTIVE.
THERE ARE SOME EXAMPLES WHERE IT IS EFFECTIVE, BUT LEMME GIVE YOU ONE EXAMPLE OF CORN ETHANOL MANDATES, WHICH I THINK ARE PRETTY EXPENSIVE.
DEMOCRATS AND REPUBLICANS AGREED WE NEEDED TO HAVE CORN ETHANOL MANDATES.
SO WE PASSED MANDATES AND NOW THAT MONEY WE SPEND ON CORN, ETHANOL HAS COMPETED WITH ELECTRIFICATION, MASS TRANSIT, WALKABLE CITIES.
THERE'S A VARIETY OF THINGS THAT HAS BEEN PRETTY EXPENSIVE ON TRANSPORTATION AND HAS GOTTEN IN THE WAY.
SO IF OUR DECARBONIZATION EFFORTS, SO THIS KIND OF A GENERAL APPROACH TO POLICY DESIGN, I RECOMMEND AND I BELIEVE THAT IS IT.
APPRECIATE THE OPPORTUNITY TO COME BACK AND I'M AVAILABLE FOR WHATEVER QUESTIONS OR CORRECTIONS YOU HAVE.
UM, I'M JUST SITTING HERE THINKING AND JUST LET ME TOSS THIS OUT AND THEN WE'LL, WE'LL SEE WHAT ALL QUESTIONS WE HAVE ON, ON THE DAIS.
UM, YOU POINT OUT THAT THE EMISSIONS FROM THE CARS, UM, IS THE MOST POLLUTING THAT WE'RE SEEING IN OUR CITY.
AND SO WE SHOULD BE, I THINK, LOOKING AT WAYS TO INCREASE THE ATTRACTIVENESS OF PURCHASING ELECTRIC VEHICLES, WHICH OF COURSE GOES TO THE COST OF THEM.
UM, THERE'S AN ASSORTMENT OF REBATES OUT THERE.
I GUESS THEY'VE BEEN, UM, CONTINUED AT THE FEDERAL LEVEL.
SO IT SEEMS LIKE MAYBE THERE'S SOMETHING ABOUT INCREASING REBATES FOR ELECTRIC VEHICLES THAT, THAT THE CITY MIGHT CONSIDER LOOKING AT.
UM, AND IN THAT SAME VEIN, IF WE WERE TO FIND, TRY TO FIND A WAY TO REDUCE OUR USE OF THE MORE POLLUTING THE DIRTIER FUELS, KNOWING THAT WE, WE NEED THEM, BUT WE WANT TO REDUCE THEIR USE AND HAVE THEM MAYBE AS THE BACKUP, LIKE THE BELT SUSPENDERS, WHAT MIGHT THIS D DO? WHAT MIGHT THE CITY OF AUSTIN DO TO KICKSTART AND FOCUS EVERYONE'S ATTENTION ON ACROSS THE CITY, HAVING ROOFTOP SOLAR BE MORE THE NORM THAN THE EXCEPTION? UH, LOOK, GREAT QUESTION.
SO THE, WE HAVE A VARIETY OF ENVIRONMENTAL CHALLENGES IN AUSTIN.
UH, TAILPIPES ARE A BIG ONE FROM GASOLINE AND THEN MAYBE DIESEL TRUCKS, ALSO OUR NATURAL GAS FURNACES AND COOKTOPS AT HOME.
THOSE ARE OUR BIGGEST SOURCES OF POLLUTION IN THE CITY OF AUSTIN AREA.
WE HAVE OTHER POLLUTION FROM POWER PLANTS WE OWN THAT ARE OUTSIDE THE CITY.
BUT IF WE LOOK AT THE POLLUTION JUST FROM TRANSPORTATION, YOUR TYPICAL OPTIONS ARE WALKABLE CITIES, MASS TRANSIT WORK FROM HOME POLICIES AND ELECTRIFICATION OF TRANSPORTATION.
SO ELECTRIC VEHICLES ARE A BIG SOLUTION FOR THAT.
AND UH, AND PROBABLY WE SHOULD DO ALL OF THOSE THINGS TO SOME DEGREE.
AND I THINK, UH, THERE ARE ELECTRIC VEHICLE REBATES AT THE FEDERAL LEVEL.
I BELIEVE THERE ARE SOME REBATES LOCALLY FOR THE CHARGER IF YOU WANT TO INSTALL A CHARGER AT YOUR HOME.
SO I GOT A REBATE FOR MY, I HAVE AN ELECTRIC VEHICLE AND I'VE GOT A CHARGER AT HOME.
AND I, I THINK THERE'S ROOM FOR MORE REBATES TO ENCOURAGE ELECTRIFICATION.
THOSE REBATES PAY FOR THEMSELVES, WHICH IS INTERESTING.
SO IF WE HAVE MORE ELECTRIC VEHICLES IN THE CITY OF AUSTIN THAN MONEY RETURNS TO THE CITY OF AUSTIN.
AND SO THAT'S A UNIQUELY POWERFUL LEVER.
PERHAPS RIGHT NOW WE SEND OUR MONEY OUTTA THE CITY TO VALERO OR WHOEVER FOR GASOLINE.
SO WE'RE SENDING MONEY OUTTA THE CITY FOR GASOLINE, BUT SENDING THE MONEY IN THE CITY FOR ELECTRICITY IS MUCH BETTER FOR US TO CIRCULATE THE MONEY IN THE LOCAL ECONOMY.
SO I THINK THERE'S A LOT OF OPPORTUNITY THERE.
I THINK THERE'S A LOT MORE OPPORTUNITY FOR ROOFTOP SOLAR.
I'VE GOT A 10 KILOWATT ARRAY, WHICH IS PRETTY BIG.
NOT EVERYONE HAS AN UNSHADED, SOUTH-FACING ROOF THE WAY I DO.
BUT FOR WHATEVER UNSHADED, SOUTH-FACING ROOFS WE HAVE RESIDENTIAL ROOFTOP SOLAR MAKES A LOT OF SENSE.
IT'D BE GREAT FOR THAT TO BE A DEFAULT.
YOU MIGHT BE ABLE TO GET THERE THROUGH CODES THAT NEW HOMES MUST BE EITHER SOLAR EQUIPPED OR SOLAR READY AND THAT KIND OF THING.
UH, THE BIGGER OPPORTUNITY IS REALLY COMMERCIAL SITES, I WOULD SAY THAT I MENTIONED EARLIER, THE WAREHOUSES AND PARKING LOTS.
'CAUSE THEN YOU GET ECONOMIES OF SCALE.
RESIDENTIAL ROOFTOP SOLAR IS REALLY HANDY FOR A VARIETY OF REASONS, BUT IT DOESN'T HAVE THE SAME ECONOMIES OF SCALE.
SO IT COULD BE MORE EXPENSIVE.
SO THE COMMERCIAL ONES TEND TO BE, UH, BETTER.
AND IF YOU COULD DO UTILITY SCALE, GREAT, BUT WE DON'T HAVE THE SPACE IN AUSTIN SO EASILY FOR THE REALLY LARGE SOLAR FARMS. UM, SO I THINK, UM, MAKING SOLAR MORE OF A DEFAULT IS GREAT.
THERE'S LIKE, THERE'S HUNDREDS OF MEGAWATTS, MORE SOLAR WE COULD PUT INTO AUSTIN AND WE SHOULD DO THAT AND THEN, UH, ELECTRIFY AS MANY VEHICLES AS POSSIBLE.
AND THEN WE NEED TO MANAGE THOSE VEHICLES.
[01:10:01]
CHARGE AT 6:00 PM IN THE EVENING.WE'D LIKE THEM TO CHARGE ALWAYS THE NIGHTTIME CHARGE.
FREE NIGHTS AND WEEKENDS LIKE WE USED TO HAVE FOR, UH, MOBILE PHONE PLANS AND THAT KIND OF THING, UM, IS PROBABLY THE WAY TO GO.
AND MAYBE I'LL, I'LL COME TO THAT POINT.
WHETHER ELECTRIC VEHICLES BREAK THE GRID OR SAVE THE GRID, DEPENDS ON WHAT TIME OF DAY YOU CHARGE THEM.
IF WE ALL PLUG IN OUR ELECTRIC VEHICLES AT THE SAME TIME EVERY DAY ON A SUMMER AFTERNOON, WE'LL BREAK THE GRID.
BUT IF WE CHARGE OFF PEAK, IT LOWERS THE COST FOR EVERYBODY.
'CAUSE IT AMORTIZES THE COST OF THE GRID ACROSS MORE PEOPLE IN KILOWATT HOURS.
SO, UH, SMART CHARGING MANAGEMENT WILL BE VERY IMPORTANT AND THAT SHOULD LOWER THE COST FOR EVERYBODY AS WE ELECTRIFY WHILE REDUCING EMISSIONS AND THAT KIND OF THING.
YEAH, I'M VERY OPTIMISTIC ABOUT IT.
WHAT KIND OF QUESTIONS DO WE HAVE? YES, COUNCIL MEMBER VELA, WHY DON'T WE START OFF WITH YOU AND THEN COUNCIL MEMBER RYAN ALTER AND THEN WE'LL GO OVER TO THIS SIDE OF THE GUYS.
THANKS SO MUCH FOR, FOR COMING BACK AND, UH, CHATTING WITH US.
UM, THE, THE BATTERY DEVELOPMENT CONTINUES TO, YOU KNOW, PROCEED A, UH, A PACE BASICALLY, YOU KNOW, WE'VE SEEN, UH, THEM BE VERY HELPFUL IN, UH, THIS SUMMER REALLY, UH, THE COMBINATION OF THE INCREASED SOLAR, UH, PLUS THE BATTERIES KICKING IN AT REALLY KIND OF JUST THE RIGHT TIMES.
UH, YOU KNOW, WE MANAGED TO MAKE IT THROUGH THE SUMMER IN TEXAS WITHOUT TOO MANY PROBLEMS. LET ME KNOCK ON WOOD THERE.
UH, BUT, UH, HOW DO YOU SEE, UH, AND FROM AN AUSTIN ENERGY PERSPECTIVE, THE FUTURE BATTERY INVESTMENT, ESPECIALLY KIND OF LOCAL BATTERY, UH, INVESTMENTS SO THAT WE CAN, UH, HAVE THAT POWER READY TO DEPLOY, YOU KNOW, A A AS NEEDED, BOTH IN TERMS OF ITS, ITS EFFECTIVENESS AND ALSO IN TERMS OF ITS OF ITS COST.
SO ONE OF THE EXCITING TECHNOLOGY TRENDS IN THE LAST FEW YEARS IS THE COST DECLINE IN BATTERIES AS WELL AS A PERFORMANCE IMPROVEMENT.
SO BATTERIES ARE NOW MORE ENERGY DENSE AT LESS COST THAN BEFORE, SO YOU CAN GET MORE PERFORMANCE AT LOWER COST, WHICH IS REALLY GREAT.
AND BATTERIES KIND OF HELPED US SAVE THE DAY MULTIPLE TIMES THIS SUMMER IN ADDITION TO NEW SOLAR.
IN ADDITION, IT WASN'T QUITE AS HOT THIS SUMMER AS LAST SUMMER, BUT SO BATTERIES WERE REALLY VALUABLE, ESPECIALLY LIKE SIX TO 8:00 PM SEVEN TO 9:00 PM MOST BATTERIES INSTALLED IN
MORE THAN NEWER PROJECTS ARE LIKE FOUR HOUR BATTERIES TO, TO BRIDGE THE TIME WHEN SOLAR IS CRASHING.
BUT WIND HASN'T RISEN BUT IT'S STILL HOT.
SO THERE'S AN EVENING TIME WHERE BATTERIES ARE PARTICULARLY AVAILABLE AND VALUABLE, ESPECIALLY THE LITHIUM ION BATTERIES, WHICH ARE THE BATTERIES IN MY PHONE OR YOUR LAPTOP AND CARS AS THE MOST COMMON BATTERIES OUT THERE.
THEY WILL CONTINUE TO GET BETTER.
I EXPECT THEIR PRICES TO CONTINUE TO DROP.
I THINK COST ENERGY SHOULD CONSIDER INSTALLING A LOT OF THEM.
WE DID A SUBSTATION STUDY FOR AUSTIN ENERGY LAST YEAR WHERE IF THERE'S A SUBSTATION WITH ROOM FOR A BATTERY, ADDING BATTERIES LIKE A MEGAWATT OF BATTERY OR NOT, YOU DON'T NEED A HUGE ARRAYS.
EACH ONE WOULD IMPROVE PERFORMANCE AND SAVE COSTS.
SO THERE'S A LOT OF ROOM FOR MORE BATTERIES.
WHAT THE BATTERIES DON'T DO WITH CURRENT TECHNOLOGY, ALTHOUGH IT'S GETTING BETTER, IS GIVE YOU LIKE TWO DAYS, FOUR DAYS, 10 DAYS OF STORAGE.
WE HAVE THESE WIND DROUGHTS THAT HAPPEN EVERY ONCE IN A WHILE IN TEXAS AND SOLAR DROUGHTS WHERE IT MIGHT BE CLOUDY AND WINDLESS AND HOT FOR SEVERAL DAYS IN A ROW.
AND THAT'S WHERE IT'S HARD TO USE BATTERIES TO BRIDGE THE ENTIRE DIFFERENCE.
UM, THERE ARE OTHER SOURCE TECHNIQUES OR NEW BATTERY CHEMISTRIES THAT ARE COMING THAT WILL BE COMMERCIALLY AVAILABLE MAYBE IN 2030 OR SOMETHING LIKE THAT.
AND THEN YOU COULD DO THINGS LIKE COMPRESSED AIR ENERGY STORE.
THERE ARE OTHER WAYS TO STORE ENERGY WE CAN LOOK AT, BUT THAT'S WHERE PEAKERS OR BACKUP POWER PLANTS ARE PARTICULARLY VALUABLE IS WHEN YOU DON'T HAVE WIND OR SUN.
IF YOU HAVE WIND OR SUN AVAILABLE, YOU WANT TO USE THAT BECAUSE IT'S CLEANER AND CHEAPER.
IT'S REALLY WHEN YOU DON'T HAVE WIND OR SUN AVAILABLE THAT YOU WANT SOME OTHER OPTION.
BATTERIES ARE GREAT NEAR TERM.
UM, THERE'S SOME LARGE ANNOUNCEMENTS THAT YOU HEARD EARLIER ALREADY AT CPS IN SAN ANTONIO AND SOME OTHER PLACES WHERE THERE'S MULTI HUNDRED MEGAWATT RAYS.
THEY HAVE A LITTLE MORE SPACE TO DO THAT.
THERE'S PROBABLY ROOM, I DUNNO IF THERE'S PHYSICAL ROOM IN LOSS ENERGY, BUT A COUPLE HUNDRED MEGAWATTS OF BATTERIES WOULD BE PRETTY HANDY FOR AUSTIN AS WELL.
THE, THE CHALLENGE IS WE NEED LIKE 4,000 MEGAWATTS OF STUFF.
SO MAYBE YOU NEED HUNDREDS OF MEGAWATTS OF SOLAR AND HUNDREDS OF MEGAWATTS OF BATTERIES AND HUNDREDS OF MEGAWATTS OF WIND AND HUNDREDS OF MEGAWATTS OF EFFICIENCY AND YOU STILL NEED THOUSANDS OF MEGAWATTS.
SO MAYBE WE DOUBLE THOSE NUMBERS.
I STILL SAID, AND WE, WE STILL COME UP A LITTLE BIT SHORT.
THEY'RE LARGE PIECES OF EQUIPMENT WHERE A LOT OF WIRES COME IN AND OUT.
SOMETIMES THEY HAVE SPACE TO PUT A BATTERY.
IF YOU COULD PUT A BATTERY THERE, YOU CAN USE THAT TO DO PEAK SHAVING.
YOU CAN USE THAT BATTERY TO HELP PROVIDE SOME OF THE PEAK POWER.
SO YOU REDUCE WHAT YOUR PEAK DEMAND IS CITYWIDE AT THE BULK SYSTEM AND YOU REDUCE HOW MUCH POWER YOU ARE PULLING FROM THE GRID AS A WHOLE, WHICH LOWERS COST FOR AUSTIN ENERGY.
'CAUSE AUSTIN ENERGY HAS TO GENERATE THE ELECTRICITY.
BUT THERE'S ALSO SOMETHING CALLED FOUR CP.
IT'S CALLED FOUR COINCIDENT PEAK.
IT'S A PRICING SCHEME IN
AND SO EVERYTHING YOU DO TO LOWER PEAK DEMAND, LOWERS COST AND BATTERIES CAN HELP DO THAT PEAK SHAVING.
AND IF YOU DO PEAK SHAVING, ONE MEGAWATT AT A TIME, BUT IN A HUNDRED DIFFERENT LOCATIONS, YOU REALLY LOWER YOUR COST.
ONE MEGAWATT BECOMES IMPORTANT BECAUSE ABOVE A MEGAWATT ERCOT STARTS TO CONTROL IT OR WANTS TO CONTROL IT.
SO THERE'S CERTAIN RULE YOU WANT TO GET UNDER A CERTAIN SIZE
[01:15:01]
TO KEEP IT UNDER US ENERGY CONTROL.UM, BUT DISTRIBUTED AROUND TO LOWER COST.
THAT'S WHAT OUR ANALYSIS DONE.
I DO NOT KNOW IF IT'S IN THEIR RESOURCE GENERATION PLAN THOUGH OR ANYTHING LIKE THAT.
BUT I THINK EVEN IF YOU IGNORE THAT DETAIL OF PUTTING BATTERIES AS SUBSTATIONS, THERE'S AN OPPORTUNITY FOR BATTERIES IN AUSTIN FOR SURE.
AND, AND AND, AND WITH REGARDS TO THE, UH, YOU KNOW, POTENTIAL AGAIN, YOU KNOW, WIND DROUGHT OR YOU KNOW, A A A LONG SERIES OF, UH, OF, OF CLOUDY DAYS, WHICH AGAIN, I MEAN IT'S GONNA HAPPEN.
UH, IS THAT WHERE, IN TERMS OF, OF PEAKERS IN THE SYSTEM AND, AND HONESTLY I'M THINKING NOT JUST AUSTIN ENERGY, BUT REALLY BROADLY SPEAKING IN TEXAS, IS THAT THE ROLE THAT YOU WOULD SEE, UH, PEAKERS AND OR KIND OF, I GUESS NATURAL GAS PLAYING AS KIND OF AN EMERGENCY BACKUP FOR, YOU KNOW, WHEN ALL ELSE FAILS, CRANK UP THE PEAKERS? YEAH, EXACTLY.
SO HISTORICALLY IN ERCOT AND AUSTIN, THE NATURAL GAS POWER PLANTS WERE JUST FOR BACKUP.
THEY WERE PEAK PEAK TIMES OR BACKUP TIMES.
AND THEN AS GAS GOT CHEAPER, WE USED GAS ALL THE TIME AND USE COAL AS PEAKERS BECAUSE COAL IS DIRTIER AND MORE EXPENSIVE.
SO GAS AND COAL HAVE PLAYED THAT ROLE TO SOME DEGREE.
THE COAL'S PRETTY DIRTY, SO IT'D BE GREAT TO TURN THAT OFF AND JUST USE GAS FOR THE PEAKERS.
SO I THINK MOST NEW GAS CONSTRUCTION IN TEXAS IS NOT EXPECTED TO RUN AROUND THE CLOCK.
IT'S EXPECTED TO RUN, I DON'T 10% OF THE YEAR OR SOMETHING LIKE THAT FOR THOSE TIMES WHEN YOU ARE WINDLESS OR, UM, SOLAR OUTPUT IS LOW OR IT'S PARTICULARLY HOT OR PARTICULARLY COLD OR SOMETHING LIKE THAT.
SO THE GAS SYSTEMS MOSTLY BEING CONSIDERED TO MY KNOWLEDGE ARE ARE FOR THOSE HIGH VALUE BACKUP TIMES.
NOT FOR AROUND THE CLOCK OPERATION.
IF YOU BACK UP 20 YEARS, THOSE GAS POWER PLANTS WERE BUILT WITH A LITTLE MORE INTENTION TO RUN MORE.
BUT TODAY, 'CAUSE WE HAVE WIND AND SOLAR, YOU JUST WANT TO USE THE GAS WHEN YOU DON'T HAVE THE WIND OR SOLAR.
SO YOU ONLY WANT TO USE IT IF YOU DON'T HAVE WIND OR SOLAR AVAILABLE.
AND, AND THAT THAT'S WOULD BE, YOU KNOW, MY SENSE TOO, AGAIN IS I THINK THIS SUMMER IS A GREAT EXAMPLE OF IT, BUT WHERE, UH, I MEAN WIND AND SOLAR ARE JUST ABSOLUTELY THE PREFERRED, UH, INPUTS, UH, TO, UH, THE SYSTEM, YOU KNOW, WHENEVER POSSIBLE.
UH, AGAIN, WITH JUST THOSE RELIABILITY CONCERNS WHERE WE'RE GONNA HAVE TO FILL IN THE GAP AGAIN, PREFERABLY I GUESS WITH BATTERIES.
UH, BUT, BUT UH, AGAIN, RELIABILITY, OBVIOUSLY IT HAS TO RUN.
I MEAN WE, WE'VE GOT TO, TO, TO KEEP THE LIGHTS ON NO MATTER WHAT.
BATTERIES ARE GREAT FOR THAT ONE TO FOUR HOUR GAP.
THEY'RE NOT GREAT FOR THE THREE TO FIVE DAY GAP.
UH, COUNCIL MEMBER RYAN ALTER AND THEN COUNCIL MEMBER ALLISON ALTER.
UH, I WANNA START KIND OF AT THE BACK OF YOUR PRESENTATION, WE TALK ABOUT STANDARDS RATHER THAN PRESCRIPTION.
I'M CURIOUS HOW THAT APPLIES KIND OF THE DECISION IN FRONT OF US WHERE WE ARE KIND OF THE MARKET PARTICIPANT EXCLUSIVELY IN THIS, RIGHT? IF WE SAY WE WANT 95% OR 90%, UH, RENEWABLE, THERE IS REALLY NO MARKET TO GO TO.
WE HAVE, 'CAUSE WE HAVE, RIGHT? WE HAVE TO DECIDE WHAT WE'RE OUR AGREEMENTS ARE GONNA BE.
SO I'M JUST CURIOUS HOW YOU WOULD APPLY KIND OF THAT PRINCIPLE TO WHAT WE'RE DOING HERE.
SO THERE'S A STANDARD YOU COULD SET FOR A, LET'S SAY A CLEANLINESS STANDARD FOR O ENERGY THAT ON AVERAGE THE EMISSIONS FROM THE O ENERGY FLEET IS, UH, I DON'T, I'M GONNA MAKE THESE NUMBERS UP SO I DON'T, BUT THEY'RE A COUPLE HUNDRED POUNDS OF CO2 PER MEGAWATT HOUR.
LET'S SAY IT'S 300 POUNDS, I, I DON'T KNOW THAT NUMBER, BUT IT'S SOME NUMBER.
AND YOU COULD SAY AUSTIN ENERGY OVER TIME YOU MUST LOWER THAT THRESHOLD TO GET TO A POINT WHERE AT SOME FUTURE DATE IT'S 50 POUNDS PER MEGAWATT HOUR ON AVERAGE OF THE YEAR OR LESS SO THAT IT'S CLEANER.
YOU CAN SEE THE SAME THING FOR KNOCKS AND SOCKS AND THAT KIND OF THING.
AND SO YOU COULD SET A STANDARD AND THEN AUSTIN ENERGY WOULD FIGURE OUT HOW TO COMPLY WITH THAT STANDARD, WHICH MIGHT BE A MIX OF WIND, SOLAR AND BATTERIES, MAYBE PROCURING MORE OUT OF SERVICE AREA, NUCLEAR, IF IT'S AVAILABLE, MAYBE DOING METHANE CARBON CAPTURE OR WHATEVER.
BUT YOU GIVE A STANDARD AND THEN THEY WOULD FIGURE OUT HOW TO MEET THAT STANDARD, THE MOST RELIABLE IN A MOST RELIABLE, EFFECTIVE WAY.
YOU COULD ALSO HAVE A RELIABILITY STANDARD, ALTHOUGH THEY ALREADY HAVE RELIABILITY STANDARDS, BUT YOU COULD SAY YOU NEED TO GET YOUR CLEANLINESS BELOW A CERTAIN THRESHOLD AND YOUR RELIABILITY ABOVE A CERTAIN THRESHOLD OR SOMETHING LIKE THAT.
AND THEN THEY WOULD FIGURE, FIGURE IT OUT HOW TO DO THAT.
THAT'S WHAT UTILITIES HAVE TO DO.
AND THAT'S DIFFERENT THAN SAYING YOU MUST BE A HUNDRED PERCENT SOLAR BY 2035 OR YOU CAN'T DO THIS THAT.
SO, UH, IF YOU PRESCRIBE THE SOLUTION, YOU MIGHT GET UNINTENDED CONSEQUENCES OF DRIVING UP THE COST OR DRIVING DOWN RELIABILITY OR SOMETHING LIKE THAT.
UM, AND SO MAKE IT A STANDARD SPACE, THEN YOU GO MODEL AND FIGURE OUT, OKAY, HOW DO WE MOST CHEAPLY COMPLY WITH THIS STANDARD? AND YOU OPEN IT UP AND THAT'S WHAT THE CLEAN AIR ACT DID IS JUST SAID, YOU NEED TO GET CLEANER.
AND, AND SOME POWER PLANTS SAID, WE'LL JUST SWITCH COAL, THAT'S EASY.
AND SOME POWER PLANTS SAID, UH, WE'LL ADD A BILLION DOLLAR SCRUBBER BECAUSE OUR COAL POWER PLANTS NEW ENOUGH, IT'S GONNA LAST LONG IF WE COULD PAY OFF THE SCRUBBER.
AND OTHERS JUST INSTALLED MORE EFFICIENT EQUIPMENT.
THEY, THEY ALL HAD OPTIONS AND IT JUST MADE IT FASTER TO COMPLY WITH AND EASIER TO COMPLY WITH.
AND SO YOU CAN, AND OPTIMIZATION SPEAK, AND I CAN'T REMEMBER IF YOU TOOK AN OPTIMIZATION CLASS AT UT, BUT IN OPTIMIZATION YOU HAVE A GOAL.
WHAT ARE YOU TRYING TO OPTIMIZE AROUND? AND YOU HAVE CERTAIN CONSTRAINTS
[01:20:02]
AND IF YOU OVER CONFINE IT, YOU DON'T GET TO AN OPTIMAL ANSWER, I GUESS IS THE WAY I'D SAY IT IN MATH SPEAK.WHEN YOU TALK ABOUT, UM, THE VOLTAGE SUPPORT OR THE FREQUENCY SUPPORT, I KNOW LAST TIME YOU WERE HERE YOU WERE TALKING ABOUT THOSE SPINNING TURBINES AND HOW THAT HELPS.
I'M CURIOUS HOW YOU SEE LIKE THESE ISLAND NATIONS OR OTHER AREAS THAT ARE EXCLUSIVELY SOLAR BATTERY, DO THEY JUST HAVE LESS RELIABILITY AND, AND DON'T HAVE THAT? OR HOW DO THEY WORK? AND THERE ARE NOT THAT MANY ISLAND NATIONS THAT ARE EXCLUSIVELY SOLAR AND BATTERY, BUT THEY'RE, THAT'S GROWING.
THEY, UM, BUT THEY OFTEN HAVE LESS RELIABILITY.
THE BUT THE BATTERIES CAN DO SOME GRID FORMING, THEY CAN DO SOME RELIABILITY SUPPORT AND SOLAR PANELS CAN DO THE SAME.
THEY'VE GOT NEW DIGITAL CONTROLS.
BUT IF WE'RE ON AN AC GRID, MEANING ALTERNATING CURRENT GRID WITH A FREQUENCY OF 60 HERTZ, WHICH IS THE WAY MOST OF THE WORLD IS, ALTHOUGH PARTS OF JAPAN ARE 50 HERTZ REASONS I CAN'T EXPLAIN, BUT YOU HAVE SOME FREQUENCY USING A ROTATING MACHINE TO MAINTAIN THE FREQUENCY WORKS BETTER.
AND SO YOU DO GET RELIABILITY ISSUES.
I'M SAY LIKE IN MAUI, SOME OF THESE PLACES WHERE THEY HAVE A LOT OF WIND AND SOLAR AND THEY HAVE BACKUP DIESEL GENERATORS, FRANKLY, TO PROVIDE SOME OF THAT.
THEY ALSO DON'T HAVE A LARGE, UH, INDUSTRIAL LOAD.
IT'S MOSTLY LIKE TOURIST LOAD GOLF COURSES AND RESORTS.
SO THE DEMAND'S NOT AS HIGH AND THE, THE WEATHER IS MILD AND IF YOU ARE FREQUENCY SAGS A LITTLE BIT DOESN'T BLOW UP EQUIPMENT THE WAY IT MIGHT IN AN INDUSTRIAL PLACE LIKE TEXAS.
SO ISLAND NATIONS WILL DO THIS.
UM, MAYBE ICELAND'S A BIG ISLAND, BUT THEY HAVE A LOT OF GEOTHERMAL.
MANAGE IT FOR A PLACE LIKE ICELAND.
UM, ON YOUR CHART OF THE DEMAND GROWTH THAT WE'RE GONNA SEE, I'M CURIOUS, HAVE YOU OVERLAID THAT AT ALL? LIKE WITH THE INTERCONNECTION QUEUE AND HOW, WHAT KIND OF GROWTH WE'RE GONNA SEE WITH GENERATION OR STORAGE AND HOW, YOU KNOW, ARE WE TRACKING OR ARE WE, ARE WE SHORT? I'VE NOT OVERLAYED IT WITH INTERCONNECTION QUEUE FOR AUSTIN, BUT AUSTIN ENERGY MIGHT KNOW THAT, BUT WE'VE, WITH ERCOT ERCOT QUEUE LOOKS LIKE IT'S JUST GONNA GROW STEEPLY ON LARGE LOADS, NEW DATA CENTERS, OIL AND GAS FACILITIES, REFINERIES, FACTORIES, BATTERY MANUFACTURING, THE GIGAFACTORY HERE IN AUSTIN, SO THERE ARE NEW LARGE LOADS THAT INTERCONNECTION QUEUE LOOKS SIGNIFICANT AND THE SUPPLY INTERCONNECTION QUEUE LOOKS SIGNIFICANT AS WELL.
THE SUPPLY IS ALMOST EXCLUSIVELY WIND, SOLAR AND BATTERIES AND A LITTLE BIT OF GAS.
I THINK THE MARKETS PREFER WIND, SOLAR, AND BATTERIES WITH A LITTLE BIT OF GAS, WHICH IS KIND OF WHAT EVERYONE'S CONCLUDING.
AND SO THOSE QUEUES LOOK SUBSTANTIAL.
HOW MUCH OF THE NEW SUPPLY GETS BUILT AND HOW MUCH OF THE NEW LOAD GETS BUILT? WE DON'T KNOW.
IT'S AT MOST PROBABLY 50%, BUT IT'S PROBABLY SOMEWHERE IN THE 20 TO 50%.
BUT EVEN 20 TO 50% OF THOSE CURVES IS STILL PRETTY TRAUMATIC, I WOULD SAY.
AND THEN SOME FRACTION OF THAT WILL BE IN AUSTIN.
I DON'T KNOW EXACTLY WHAT FRACTIONS IN AUSTIN.
AUSTIN'S DRIVEN MORE BY POPULATION GROWTH.
JUST, WE HAVE MORE PEOPLE COMING, BUT WE NOW WITH LARGE FACILITIES, DATA CENTERS THINK WE ALSO HAVE SOME OF THESE LARGE LOADS COMING AS WELL.
UH, SURE MAY YEAH, I JUST WANTED TO SAY ADD FOLLOW UP THING TO WHAT HE JUST SAID.
AND, AND, BUT IN 1991 WHEN THE FEDERAL CLEAN AIR ACT AMENDMENTS WERE PASSED, UH, THERE WE HAD A GOVERNOR IN TEXAS WHOSE NAME WAS ANN RICHARDS, AND SHE APPOINTED A YOUNG MAN TO BE CHAIR OF THE STATE AGENCY THAT IMPLEMENTED THE FEDERAL CLEAN AIR ACT.
I'M TRYING TO REMEMBER WHO THAT WAS.
YEAH, I DON'T REMEMBER HIS NAME EITHER.
BUT, UM, UH, BUT HE, ONE OF THE THINGS THAT, THAT DR. WEBER IS TALKING ABOUT SAYING, HERE'S THE STANDARD THAT BECAME, IT, IT IT, PEOPLE SCREAMED AND YELLED WHEN THE FEDERAL CLEAN AIR ACT AMENDMENTS GOT PASSED.
OH, WE CAN, YOU KNOW, YOU CAN NEVER DO THOSE KINDS OF THINGS.
BUT WHEN YOU SAID TO THEM, GO INNOVATE AND FIGURE OUT HOW TO DO IT, AND THIS IS THE STANDARD AND WE'RE NOT GOING TO PRESCRIBE, YOU'RE NOT GONNA HAVE US WRITING.
AND WE, WE LITERALLY SAID THAT.
WE SAID, WE'RE NOT GOING TO WRITE THE RULE THAT SAYS, HERE'S WHAT YOU NEED TO DO.
AND THE ONE THAT POPS OUTTA MY MIND AS I'M LISTENING TO HIM WAS BAKERIES.
BAKERIES HAD REAL PROBLEMS MEETING, THEY, THEY WERE WAY BEHIND ON MEETING THOSE STANDARDS.
AND THEY CAME IN AND I REMEMBER MRS. BAIRD'S BREAD, UH, JUST WAS BESIDE ITSELF AND WE SAID, WE'RE NOT GONNA WRITE THE STANDARDS.
YOU COME BACK AND TELL US WHAT THE, WHAT YOU NEED TO DO TO GET THERE.
AND IT MADE ALL THE DIFFERENCE.
IT WAS A, I SAY ALL THE DIFFERENCE.
THERE WERE SOME THAT, YOU KNOW, WE DIDN'T GET WHERE WE NEEDED TO GET, BUT IT'S A, THAT'S AN IMPORTANT POINT FOR US TO KEEP THAT IN MIND.
THAT THERE MAY BE THINGS THAT WE'RE NOT THINKING ABOUT, UH, THAT THE EXPERTS CAN COME UP WITH AND FIGURE OUT AND, AND BE VERY HELPFUL.
UH, THAT WAS A, IN MY OPINION, A SIGNATURE PART OF THE CLEAN AIR ACT AMENDMENTS IN 91.
POORLY UNDERSTOOD AT THE TIME BECAUSE THEY HADN'T BEEN DONE THAT WAY.
BUT IT WAS A, IT WAS A VERY IMPORTANT PART BECAUSE IT LED TO ITS SUCCESS.
AND I WOULD SAY GREAT EXAMPLES.
UH, THEY WERE PROBABLY USING NATURAL GAS FOR SOME OF THEIR BAKING.
THEY PROBABLY WENT TO LOW NOX BURNERS, UH, MORE EFFICIENT BURNERS IN THE PROCESS.
THEY PROBABLY ENDED UP SAVING MONEY 'CAUSE THEY USED LESS GAS IN THE END.
AND THAT'S WHAT A LOT OF PEOPLE FOUND IS THAT BECOMING CLEANER WAS ALIGNED WITH EFFICIENCY.
[01:25:01]
SO IT PAID FOR ITSELF.WE ALSO SAID TO 'EM, WE DON'T CARE IF YOU SAVE MONEY.
THEY WERE WORRIED THAT, WELL, WE DON'T CARE IF YOU SAVE MONEY, GO SAVE MONEY.
IF YOU GET THAT AN ADDED BENEFIT FROM IT, SO BE IT.
BUT, UM, IT, IT, IT REALLY DID MAKE A BIG DIFFERENCE IN THE APPROACH BECAUSE IT, IT, IT FRANKLY ALLOWED FOR MORE INNOVATION, ALLOWED FOR MORE FLEXIBILITY, BUT IT ACHIEVED THE GOALS AND IN SOME INSTANCES BETTER THAN WHAT THE STANDARD WAS.
NOW THAT, THAT'S A GOOD COMMENT.
UH, COUNCIL MEMBER ALLISON AL ALTER, UM, THANK YOU.
I HAVE A COUPLE OF QUESTIONS AND COUNCIL MEMBER RYAN ALTER ASKED, UH, AT LEAST ONE OF MINE.
UM, I WANTED TO UNDERSTAND, YOU KNOW, WITH YOUR CHARTS OF DEMAND GROWTH, WE'VE BEEN GETTING A LOT OF QUESTIONS ABOUT, UM, I THINK IT WAS 7,800 MEGAWATTS.
I MAY HAVE THE WRONG BALLPARK, BUT, BUT YOUR CHART, THAT'S BASICALLY THE MODEL THAT SAYS, YOU KNOW, THIS IS THE MOST WE EXPECT RIGHT NOW, UM, IN IN DIFFERENT VERSIONS THAT WE'VE SEEN OF THIS PRESENTATION.
YOU HAVE OTHER, OTHER CHARTS AS WELL.
UM, SO I JUST WANT YOU TO CLARIFY AGAIN WHAT THE CHART THAT HAS THE MOST IS.
AND THEN YOU HAVE THESE OTHER CHARTS THAT TAKE, MAKE DIFFERENT ASSUMPTIONS THAT ARE MORE REALISTIC ABOUT WHERE WE'RE GOING TO LAND.
IF YOU COULD JUST TALK THROUGH THAT SO THAT WE CAN ADDRESS THE, THE, THE CONCERN ABOUT THAT CHART BEING, UM, THAT'S GREAT.
I ONLY SHOWED ONE CHART TODAY AND I SHOWED SOME OF THE OTHER VERSIONS WHEN I WAS HERE IN JULY.
SO THAT CHART, THE BIGGEST WEDGE OF GROWTH WAS ELECTRIC VEHICLES, WHICH IS IF EVERYBODY PLUGS IN THEIR ELECTRIC VEHICLE AT THE SAME TIME SAY 6:00 PM WHICH THEY WILL NOT DO THAT.
THAT IS AN EXTREME SCENARIO, BUT I PUT IT THERE BECAUSE IT IS POSSIBLE FOR PEOPLE TO DO THAT.
AND WE HAVE EXAMPLES IN HISTORY WHERE EVERYBODY DOES THE SAME THING AT THE SAME TIME.
AND I GAVE SOME FUNNY EXAMPLES IN JULY WE WALKED THROUGH WHERE PEOPLE FLUSH THE TOILET AT THE SAME TIME DURING THE SUPER BOWL, OR THEY ALL DRIVE AT THE SAME TIME FOR THANKSGIVING TO GO ON VACATION.
OR THEY ALL TURN ON THEIR ELECTRIC TEA KETTLES AT THE SAME TIME IN ENGLAND AFTER A CERTAIN, UH, SOAP OPERA ENDS.
SO IT IS POSSIBLE FOR A MILLION PEOPLE ACROSS THE RIGHT AREA TO ASK IT TO ACT IN A SYNCHRONOUS WAY, WHICH WOULD BE QUITE HARD ON THE GRID.
SO THAT'S THE SCENARIO WHERE EVERYONE ACTS AT THE SAME TIME.
A MORE REALISTIC SCENARIO IS ABOUT 10% OF THAT MEANING OF THE, I CAN'T REMEMBER, 3,500 MEGAWATTS OF ELECTRIC VEHICLE LOAD.
MAYBE IT'LL BE JUST HUNDREDS OF MEGAWATTS OF PEOPLE ACTUALLY CHARGING THEIR CAR.
'CAUSE YOU DON'T NEED TO CHARGE A CAR EVERY DAY, 'CAUSE YOUR CAR MIGHT LAST 300 MILES.
YOU ONLY DROVE 30 MILES THAT DAY.
SO ERCOT ESTIMATES ARE MORE LIKE 10% OF THAT.
AND THAT'S PROBABLY A MORE REASONABLE NUMBER FOR YOU TO USE FOR YOUR PROJECTIONS.
UM, BUT YOU HAVE THIS RISK THAT EVERYONE DOES IT.
SO THAT MEANS YOU WILL NEED LIKE SOME SMART CHARGING MANAGEMENT OR YOU'LL NEED SOME WAY TO PREVENT THAT.
WORST CASE SCENARIO I SHOWED YOU, A MORE REALISTIC SCENARIO IS HUNDREDS AND HUNDREDS OF MEGAWATTS LOWER, WHICH STILL HAS LOW GROWTH.
THAT IMPLIES OUR LOAD WILL BE TWICE HIGHER IN THE FUTURE THAN IT'S TODAY.
SO EVEN WITH A MORE CONSERVATIVE ESTIMATE THAT I SHOWED BEFORE, UM, WE STILL HAVE A LARGE MISMATCH BETWEEN SUPPLY AND DEMAND AND THAT I DIDN'T INCLUDE THAT CHART THIS TIME, BUT IT IS IN THE CHARTS FROM LAST TIME AND I'M HAPPY TO SHARE THAT AGAIN IF WE NEED.
AND THEN IF YOU REALLY SMARTLY MANAGE THE CHARGING IN A UNIFORM WAY THROUGHOUT THE DAY, IT'S EVEN LOWER.
BUT THAT MIGHT BE A LITTLE ONEROUS TO DO.
UM, AND THEN YOU HAVE TALKED ABOUT, YOU KNOW, BECAUSE OF THE PRICES OF SOLAR AND WIND, YOU KNOW, WE'RE NOT, UM, USING THE NATURAL GLASS GAS AS MUCH AND THE ESTIMATE AS IT'S, YOU KNOW, USED ONLY ABOUT 10%, THAT'S FINE.
BUT WHEN WE ALSO HAVE THESE, YOU KNOW, POTENTIALS FOR THE LARGE GROWTH, HOW WOULD WE, YOU KNOW, GOING WITH THE STANDARDS APPROACH, WORRIED TO HAVE GAS, WHETHER IT WAS NEW OR EXISTING WITHIN THE SYSTEM, HOW WOULD WE PUT GUARDRAILS ON THAT AND STILL BE IN COMPLIANCE WITH ERCOT RULES? I THINK THE, THAT'S A GREAT QUESTION.
I, I THINK, UM, THE INTEREST OF AUSTIN ENERGY OR AUSTIN CITY OF AUSTIN TO REDUCE EMISSIONS INCLUDES THINGS LIKE TAILPIPES, WHICH ERCOT DOESN'T CARE ABOUT.
AND SO IF YOU WANT TO THINK ABOUT STANDARDS BASED EMISSIONS, LIKE COMING UP WITH WHATEVER THE ACCEPTABLE STANDARD IS FOR THE POWER SECTOR, WHETHER YOU INCLUDE THE REDUCTION IN GASOLINE, TAILPIPE EMISSIONS WILL AFFECT WHAT THE STANDARD COULD BE OR SHOULD BE OR WHAT YOU'LL TOLERATE.
AND IT MIGHT BE, YOU'LL SAY THE STANDARD NEEDS TO BE THIS CLEAN OR BELOW, BUT IF YOU'RE GONNA DISPLACE TAILPIPES, A HIGHER STANDARD ACTUALLY IS STOLEN GOOD.
SO WHETHER YOUR STANDARD INCLUDES TAILPIPES WILL AFFECT WHAT IT SHOULD BE.
AND THEN WITH ERCOT TO COM, UM, MAYBE I DIDN'T UNDERSTAND THIS QUESTION EXACTLY, ERCOT JUST WANTS TO KNOW, WELL WHAT'S THE LOW GROWTH GONNA BE IN YOUR AREA AND HOW MUCH ARE YOU BUYING? SO MAYBE ASK THAT QUE PART OF THE QUESTION AGAIN 'CAUSE I DIDN'T FULLY UNDERSTAND.
I'M JUST TRYING TO UNDERSTAND, YOU KNOW, WE HAVE TO BOTH SET GUARDRAILS FOR WHAT WE WOULD WANT THEM TO DO IN TERMS OF WHEN THEY WOULD USE ANY SORT OF GENERATION MM-HMM.
THAT, UM, THAT'S VERY, I ACTUALLY DON'T KNOW THAT KIND OF MARKET
[01:30:01]
OPERATION DETAIL, SO I WOULDN'T, I'M NOT GREAT POSITION TO ANSWER THAT.UM, BUT THERE'S, THERE'S BIDDING BEHAVIOR, RIGHT? SO YOU CAN, UH, AUSTIN CAN CHANGE HOW MUCH IT RUNS SOMETHING.
AND I'M SURE LISA AND BOB CAN CORRECT ME IF I'M WRONG ON THIS, UM, THAT ERCOT CAN GET PEOPLE TO RUN POWER PLANTS IF IT'S SEATED FOR RELIABILITY.
BUT YOU CAN ALSO SIGNAL THAT YOU'RE NOT DESIRING TO RUN THAT POWER PLANT AT THAT TIME.
AND IT'S REALLY ONLY AT PEAK DEMAND TIMES THAT EVERYTHING GETS TURNED ON, SO TO SPEAK.
MOST OF THE TIMES WE CAN IDLE A LOT OF POWER PLANTS 'CAUSE WE HAVE SO MUCH WIND AND SOLAR, WIND AND SOLAR I'LL COMPETE THE GAS AND EVERYTHING ELSE.
I DON'T THINK THAT REALLY ANSWERED YOUR QUESTION THOUGH, SO I WONDER.
NO, I MEAN BECAUSE I, 'CAUSE BECAUSE HOW DO YOU SET THE, HOW DO YOU SET A STANDARD? COULD YOU SET A LIMIT? YEAH.
IS THERE A LIMIT ON HOW YOU OPERATE THE POWERPOINT? WELL, SO THERE'S SOMEBODY CALLED THE IN, EXCUSE ME, THE INDEPENDENT MARKER MONITOR AT, AT THE PEC AND WHAT THAT PERSON LOOKS AT IS TO MAKE SURE PEOPLE ARE NOT GAMING THE SYSTEM.
SO FOR EXAMPLE, LET'S SAY YOU, YOU DIRECTED US TO NOT RUN GAS UNITS CERTAIN TIMES OF THE DAY, BUT LET'S SAY WE HAD 'EM AVAILABLE AND DIDN'T RUN 'EM AND BECAUSE WE DIDN'T RUN THEM PRICES RATCHETED UP, WE COULD BE ACCUSED OF GAMING THE SYSTEM IF THE PLANT WAS AVAILABLE, BUT WE DIDN'T RUN IT.
SO THAT, THAT'S JUST SOMETHING YOU HAVE TO BE CAREFUL OF THAT YOU HAVE TO WORK WITH.
I, I'LL TAKE THE, THAT QUESTION OFFLINE.
FOR MORE, I AS MORE INTERESTED IN THE GUARD RAILS AT THIS TIME.
EVERYBODY IN NEUROCO KNOWS THAT, SO IT'S NOT A SECRET.
AND I THINK ALSO THAT WOULD BE AN ISSUE JUST A FEW HOURS A YEAR OR SOMETHING LIKE THAT.
THE MOST TYPICAL ISSUE IS YOU HAVE WIND AND SOLAR AVAILABLE AND THEY'RE CHEAP AND THE MARKETS WILL CHOOSE THEM PREFERENTIALLY.
UM, AND THEN ON YOUR SLIDE FIVE, YOU SAID THIS IS AN OPPORTUNITY TO IMPROVE OVERALL FINANCIAL HEALTH OF THE UTILITY.
AND THERE WERE OBVIOUSLY VARIOUS EXAMPLES IN DIFFERENT PLACES WHERE YOU TALKED ABOUT THINGS THAT WOULD IMPACT THE HEALTH.
CAN YOU SPEAK THOUGH A LITTLE BIT MORE SPECIFICALLY, YOU KNOW, AS WE, AS WE WERE TRYING TO THINK ABOUT THE FINANCIAL HEALTH AS WE PUT TOGETHER THESE, THIS PROCESS, UM, WHAT WE SHOULD BE KEEPING IN MIND? YEAH, SO THE, THE BIG PICTURE IS THAT IN GENERAL THE POWER SECTOR IS ACROSS THE NATION, INCLUDING AUSTIN AND EVERYTHING ELSE IS WORTH TRILLIONS OF DOLLARS.
AND WE USE IT ON AVERAGE ABOUT 45% OF THE TIME.
SO WE HAVE VERY LOW UTILIZATION RATE OF THIS MULTI-TRILLION DOLLAR ASSET.
AND THEN SCALE IT DOWN, SAME KIND OF STORY IN AUSTIN, WE HAVE A POWER SECTOR, UH, WIRES AND POLES AND POWER PLANTS WORTH A LOT OF MONEY THAT WE USE ON AVERAGE 45% OF THE TIME.
NOW WE USE ALL OF IT AT PEAK TIMES IN THE AFTERNOONS.
WE USE LESS THAN HALF OF IT MOST OF THE TIME.
IF YOU ADD ELECTRIC VEHICLES, ELECTRIC HEAT PUMPS NOR LOADS, THEN WE'LL DRIVE UP OUR USAGE OF THE ASSETS FROM 45% TO SAY 60% OR 80%.
THAT MEANS WE'RE SPREADING THE COST OF THOSE ASSETS ACROSS MORE KILOWATT HOURS.
THAT LOWERS THE COST FOR EVERYBODY.
SO THAT SHOULD LOWER COSTS FOR RATE PAYERS, IT SHOULD IMPROVE THE FINANCIAL HEALTH UTILITY BECAUSE, UM, THOSE, THOSE COSTS ARE ALLOCATED MORE BROADLY.
AND SO THAT'S THE WAY IT SHOULD IMPROVE THE, THE, THE SYSTEM.
AND WE HAVE ANALOGS FOR THIS IN TELECOM AND OTHER PLACES THAT ACTUALLY AS PEOPLE USE TELECOM OR THE COST WENT DOWN IN SOME WAYS THE COST PER MINUTE AND THAT KIND OF THING.
SO IF WE DO THIS THE RIGHT WAY AND SMART SMARTLY MANAGE AND WE GET MORE UTILIZATION OF THE POWER SECTOR AND THE WIRES AND POLES IN LOS ENERGY SERVICE AREA, I CAN IMAGINE MAYBE THAT MEANS LOWER RATES FOR EVERYBODY OR JUST A MORE ROBUST FINANCIAL SITUATION FOR THE UTILITIES AS A WHOLE, WHICH IS GOOD FOR THE CITY AS WELL.
SO THAT'S THE OPTIMISTIC VIEW LIKE THIS, THIS IS GOOD FINANCIALLY.
I MEAN IT'S, IT'S BASICALLY ANOTHER WAY I THINK IS IT'S MORE AUSTIN ENERGY DOESN'T THINK IN TERMS OF REVENUES, I THINK LIKE IT'S MORE REVENUES FOR THE UTILITY, UM, WHICH JUST MAKES IT EASIER FOR THEM TO INVEST IN THE CLEANER OPTIONS AND EVERYTHING ELSE YOU WANT AND EFFICIENCY AND UM, AND THEN IN PARTICULAR IT'S MONEY WE'RE SPENDING LOCALLY ON ELECTRICITY AS OPPOSED TO SENDING TO A REFINERY IN CORPUS CHRISTI.
SO IT KEEPS THE MONEY LOCAL AS WELL.
BUT THAT, WHEN YOU SAY THIS, YOU'RE TALKING ABOUT THE DEMAND GROWTH IS THE DEMAND GROWTH, YEAH, SO THE DEMAND GROWTH, UM, SO HISTORICALLY I THINK OH NO DEMAND'S GONNA GO UP.
IT'S GONNA MAKE PRICES GO HIGHER AND IT MIGHT ACTUALLY, THE DEMAND GROWTH MIGHT, MIGHT NOT CAUSE PRICES TO GO HIGHER BECAUSE WE CAN, IT DEPENDS ON WHAT TIME OF DAY THE DEMAND GROWTH HAPPENS.
ANY MORE QUESTIONS FOR THE GOOD DOCTOR? IT'S BEEN A GREAT CONVERSATION.
THANK YOU, UH, FOR COMING BACK AND TALKING TO US MORE.
I'M HAPPY TO COME BACK AND HAPPY TO MEET ANYTIME YOU NEED.
ALRIGHT, IS THERE ANYTHING ELSE THAT WE WANTED TO TALK ABOUT ON GEN PLAN? THANK YOU SO MUCH MS. MARK.
OKAY, THE NEXT, UH, TOPIC IS THE, UM, SOLAR STANDARD AND WE WILL BE CALLING UP, LET'S SEE, WHAT DO
[4. Staff briefing on the Solar Standard Offer Program by Tim Harvey, Customer Renewable Solutions Manager, Austin Energy. Sponsors: Mayor Pro Tem Leslie Pool, Mayor Kirk Watson, and Council Member José ''Chito'' Vela.]
WE HAVE HERE? OH, RIGHT.UM, I WANTED TO ACKNOWLEDGE COUNCIL
[01:35:01]
MEMBER FUENTES IS OUT OF TOWN IN MEETINGS, BUT I DID SEE HER POP UP ON THE SCREEN UP THERE WITH COUNCIL MEMBER KELLY.SO WE HAVE TWO COUNCIL MEMBERS JOINING US FROM REMOTELY NOW HOPE EVERYTHING'S GOING WELL FOR YOU IN YOUR MEETINGS.
LET'S TALK ABOUT SOLAR STANDARD.
GOOD MORNING COMMITTEE MEMBERS.
I'M THE VICE PRESIDENT OF CUSTOMER ENERGY SOLUTIONS.
I'M GOING TO MAKE A COUPLE OF, UH, INTRODUCTORY COMMENTS AND THEN TIM, UH, HARVEY IS GONNA DELIVER THE PRESENTATION AND THEN BOTH OF US WILL BE AVAILABLE FOR ANY OF YOUR QUESTIONS.
SOLAR STANDARD OFFER IS OUR MEANS OF OFFERING A STANDARD PRICE TO SOLAR DEVELOPERS AND CONTRACTORS FOR THE BENEFIT OF OUR COMMUNITY.
SOLAR PROGRAM COMMUNITY SOLAR IS THE MEANS BY WHICH CUSTOMERS WHO CANNOT PUT ROOFTOP SOLAR ON THEIR HOMES CAN STILL SUPPORT SOLAR EXPANSION IN AUSTIN.
WE WANT TO GROW AND SCALE OUR SOLAR IN AUSTIN THROUGH COMMUNITY SOLAR AND WE ARE OPTIMISTIC THAT SOLAR STANDARD OFFER IS THE PROGRAM WITH WHICH WE CAN DO THAT.
WE ARE DOING THIS BECAUSE EXPANSION OF SOLAR SUPPORTS OUR GOALS AND OUR LOCAL RESOURCE GENERATION NEED.
IN ADDITION TO BEING IMPORTANT FOR OUR COMMUNITY, AUSTIN ENERGY, UH, HAS THE RESPONSIBILITY OF BALANCING ADDING MORE SOLAR WITH PROTECTING CUSTOMERS FROM A COST STANDPOINT.
THE SOLAR STANDARD OFF OFFER ADDRESSES SOME OF THE PAST CHALLENGES IN SCALING OUR SOLAR PROGRAM WHERE PRICES WERE NOT VIABLE OR TERMS WERE NOT ACCEPTABLE.
SOLAR STANDARD OFFER IS DIFFERENT FROM VALUE OF SOLAR.
VALUE OF SOLAR IS PRIMARILY OFFERED FOR END USE CUSTOMERS, TYPICALLY RESIDENTIAL CUSTOMERS WHERE SOLAR STANDARD OFFER WILL INITIALLY BE AN OFFERING FOR PRIVATE OR COMMERCIAL SOLAR DEVELOPERS KNOWN AS MERCHANT GENERATORS WHO WILL SEEK LARGER SCALE COMMERCIAL PROJECTS.
SO THE TERMS AND PRICING BETWEEN VALUE OF SOLAR AND SOLAR STANDARD OFFER ARE SLIGHTLY DIFFERENT.
FOR THAT REASON, THE TRANSPARENCY AND HOW THE RATES ARE SET IS THE SAME.
THE RATES ARE SET EVERY THREE YEARS ON A FIVE YEAR ROLLING AVERAGE.
THIS OFFERING HAS BEEN IN DEVELOPMENT SINCE THE LAST BASE RATE CASE IN 2022, AND WE'VE HELD SIX STAKEHOLDER ENGAGEMENT S TO GATHER VALUABLE INPUT.
WE'RE EXCITED AND LOOKING FORWARD TO THIS LAUNCH.
WE'RE HERE TODAY TO PRESENT THE OFFERING TO YOU AND WE'LL BE BRINGING TO COUNCIL, WE'LL BE BRINGING THIS TO COUNCIL FOR YOUR APPROVAL NEXT MONTH.
GOOD MORNING, MY NAME'S TIM HARVEY.
I'M THE CUSTOMER RENEWABLE SOLUTIONS MANAGER.
UH, SO TODAY WE'RE GONNA TALK ABOUT THE SOLAR STANDARD OFFER THAT, UM, WE'VE DEVELOPED WITH OUR STAKEHOLDERS.
AS ER MENTIONED, UH, ENABLES, UH, CUSTOMER CITED SOLAR INSTALLATIONS ON ROOFTOPS AND PARKING LOTS, UH, TO SUPPORT THE AUSTIN ENERGY COMMUNITY SOLAR PROGRAM AND EXPAND THAT.
THE COMMUNITY SOLAR PROGRAM, UM, HAS THREE PROJECTS TO DATE AND YOU CAN SEE THOSE ON HERE.
UH, STARTING IN THE ORDER THEY WERE, UM, INSTALLED.
WE'VE GOT PALMER EVENT CENTER.
ON THE UPPER LEFT ON THE RIGHT, YOU HAVE THE L SOLAR FARM AND LOWER LEFT, UM, THE BLUE GARAGE OUT AT THE AIRPORT.
AUSTIN ENERGY'S MADE RECENT ATTEMPTS TO INCREASE THE PORTFOLIO FOR THE COMMUNITY SOLAR PROGRAM THROUGH RFPS.
THOSE ATTEMPTS RESULTED OR DID NOT RESULT IN PROJECTS DUE TO HIGH PRICING, SITE CONTROL AND SITE VIABILITY OR PROJECT VIABILITY, I SHOULD SAY.
THE SOLAR STANDARD OFFER PROGRAM USES A RATE SOLUTION THAT AVOIDS THE RFP PROCESS AND, AND CONTRACT NEGOTIATIONS.
AND THROUGH THIS NOVEL APPROACH, UM, WE WILL PROVIDE UPFRONT COST, UM, TRANSPARENT PRICING TRANSPARENCY, UM, WHICH ALLOWS THE CONTRACTORS TO THEN TARGET AND DEVELOP PROJECTS.
SO WE'RE HOPING TO, UM, REALLY SPUR SOME LOCAL SOLAR HERE.
SO LET'S RUN THROUGH SOME TYPICAL, UM, A TYPICAL USE CASE FOR THE STANDARD OFFER.
YOU HAVE A BUILDING OWNER WITH TENANTS WHO IS CONSIDERING SOLAR TODAY.
THEY WOULD NORMALLY NOT INTERCON OR NOT GO FORWARD WITH A SOLAR PROJECT BECAUSE THAT WOULD HAVE TO BE INTERCONNECTED BEHIND THE CUSTOMER'S METER.
UM, SO THEIR TENANTS WOULD GET THE BENEFITS RATHER THAN THEM GETTING THEM DIRECTLY THROUGH THE STANDARD OFFER.
HOWEVER, THEY WOULD INTERCONNECT ON THE UTILITY SIDE OF THE METER SO THAT WE CAN DIRECTLY, UM, PAY THEM FOR THE GENERATION.
[01:40:01]
SO THIS WILL HELP TO STIMULATE A PROJECT.IF THAT BUILDING OWNER WANTS TO MOVE FORWARD, THEN THEY CAN, UH, WORK WITH A LOCAL PARTICIPATING CONTRACTOR WHO WILL INSTALL THAT SYSTEM FOR THEM.
AND THEN WE WOULD PAY THEM DIRECTLY FOR THAT GENERATION.
ALTERNATIVELY, THEY COULD WORK WITH A THIRD PARTY WHO WOULD OWN THE SYSTEM.
UM, AND THEN, YOU KNOW, THEY COULD LEASE THEIR ROOFTOPS AND PARKING LOTS TO THE THIRD PARTY TO HOST THE UM, SYSTEM.
THEN AUSTIN ENERGY WOULD PAY THAT THIRD PARTY FOR THE PRODUCTION.
THE THIRD PARTY WOULD PAY THEM SOME KIND OF A LEASE.
UM, ONCE THE SOLAR SYSTEM IS INSTALLED BY A PARTICIPATING CONTRACTOR, THE STANDARD OFFER RATE GOES INTO EFFECT AND THE ENERGY THAT WE PROCURE THROUGH THE STANDARD OFFER PROGRAM THEN GOES TO FEED INTO THE COMMUNITY SOLAR PROGRAM, EXPANDING THAT AND ALLOWING US TO HAVE MORE CUSTOMERS PARTICIPATE IN THAT PROGRAM.
SO THE DESIRED OUTCOMES OF THIS UM, PROGRAM ARE TO PENETRATE PREVIOUSLY INACCESSIBLE SPLIT AND SENDING MARKETS, UM, OFFER A MODEL THAT WILL RESULT IN THE EXPANSION OF THE COMMUNITY SOLAR PROGRAM.
UM, INCREASE OUR ENVIRONMENTAL STEWARDSHIP BY REDUCING BARRIERS, UM, TO EXPANSION THROUGH STREAMLINED PROCESSES THAT ARE STANDARDIZED.
UM, ELIMINATING THE NEED FOR AN RFP OR UH, AND CONTRACT, UM, NEGOTIATIONS, CREATING A HIGHER CUSTOMER SATISFACTION, UM, THROUGH THE SCALABILITY AND REPLICABILITY OF A COMMUNITY SOLAR MODEL.
UM, THAT ENABLES EXPANSION AND THEN, UM, ALLOWS SLOW INCOME AND MARKET RATE CUSTOMERS TO PARTICIPATE IN SOLAR THROUGH THE COMMUNITY SOLAR PROGRAM, WHETHER OR NOT, REGARDLESS OF WHETHER THEY HAVE UPFRONT CAPITAL TO SPEND OR A ROOFTOP TO PUT SOLAR ON.
THE STANDARD OFFER RATE ITSELF IS BASED ON AUSTIN ENERGY'S AVOIDED COST.
UH, SO TYPICALLY, UH, TO SERVE A A CUSTOMER'S ELECTRICAL NEEDS, AUSTIN ENERGY HAS TO BUY THAT ENERGY OFF OF THE MARKET AT THE AE.
UM, AND, AND TYPICALLY THEY AE DEBT DAY AHEAD NODE.
UM, SO WE LOOK AT THE MARKET PRICES ON THAT NODE, UM, AND ALIGN THEM WITH SOLAR PRODUCTION, UM, ON A TIME BASIS TO, UM, CALCULATE WHAT THE AVERAGE VALUE OF, OF THE ENERGY THAT THE SOLAR PRODUCES, UH, CREATES.
IT ALSO GIVES US VOIDED COSTS FOR ANCILLARY SERVICES.
UM, AND IT'S CALCULATED IN A VERY SIMILAR, SIMILAR WAY.
AND THEN AS DR. WEBER ALLUDED TO, UM, THE FOUR CP COSTS THAT WE INCUR BASED ON OUR PEAK LOAD FOR THE TOP FOUR SUMMER MONTHS, UM, TO THE EXTENT THAT THAT REDUCES THAT PEAK LOAD AND THUS REDUCES THOSE COSTS, WE CALCULATE THAT AND THAT'S AN AVOIDED COST OF THE UTILITY AS WELL.
SO THESE THREE COSTS ARE GOING IN TO CREATE WHAT THE STANDARD OFFER PRICES.
UM, THESE ARE ALSO SIMILAR COMPONENTS TO THE VALUE OF SOLAR.
SO TO KEEP THINGS CONSISTENT, UM, WE ARE PROPOSING THAT WE WOULD TIE THEM DIRECTLY TO THE SAME SCHEDULE WHERE WE START WITH THE 2021 PRICE OF, UH, 7.61 CENTS FOR SYSTEMS THAT ARE, UH, UNDER A MEGAWATT AND 4.94 CENTS FOR SYSTEMS OVER A MEGAWATT.
AND THEN ADJUSTING IN 2020 IN MARCH OF 2026.
AND AT THAT POINT IT WOULD BE BASED ON THE AVERAGE OF THE PREVIOUS FIVE YEARS OF ANALYSIS.
SO ON THE TABLE, YOU SEE, UM, WE HAVE 20, 21, 22, AND 23 ALREADY CALCULATED.
UM, YOU CAN SEE THAT IN FROM 2021 TO 2022 THE CAL OR THE UH, CALCULATED VALUE INCREASED PRETTY SUBSTANTIALLY.
AND THAT WAS DUE TO ERCOT ADJUSTING FOR, UM, YURI AND HAVING NEW MARKET REQUIREMENTS, ET CETERA, WHICH LED TO NEW MARKET COSTS.
UM, AND THEN IN 23 IT KIND OF MAINTAINED THOSE LEVELS, UM, REDUCING SLIGHTLY IN SOME AREAS AND INCREASING SLIGHTLY IN OTHERS.
SO THIS BY, BY PROVIDING THE UM, ANALYSIS ON AN ANNUAL BASIS, WE CAN INCREASE THE TRANSPARENCY TO TOWARDS THE DIRECTION THAT THE, UM, AVOIDED COST VALUES ARE GOING AND INFORM THE MARKET, UM, SO THAT THEY CAN MAKE DECISIONS BASED ON THAT INFORMATION.
[01:45:04]
SO LOOKING AHEAD TO THE TIMELINES, UM, IF WE, IF WE CAN STAY ON THE, THE SAME SCHEDULE AND COUNSEL IS ABLE TO APPROVE THE RATE IN OCTOBER, UM, EARLY OCTOBER, THEN WE WILL PRE-LAUNCH THIS PROGRAM ON OCTOBER 15TH.AT THAT TIME, WE'LL HOLD A STAKEHOLDER MEETING.
WE'LL GO THROUGH ALL OF THE PROGRAM GUIDELINES, UM, AND APPLICATION PROCESSES FOR PERMITTING AND INSPECTIONS.
UM, WE WILL BEGIN REGISTERING LOCAL CONTRACTORS AS SOLAR STANDARD OFFER PARTICIPATING CONTRACTORS, AND WE WILL BEGIN ACCEPTING APPLICATIONS AT THAT POINT.
UM, UPON APPLICATION APPROVAL, THEY MAY BEGIN CONSTRUCTION.
WE WILL START INTERCONNECTING THESE SYSTEMS IN FE IN EARLY FEBRUARY.
SO TO THE EXTENT THAT WE HAVE PROJECTS THAT COULD BE CONSTRUCTED AT THAT TIME, THAT'S WHEN WE WOULD BE, UM, ALLOWING FOR THOSE SYSTEMS TO COME ONLINE AND BEGIN TO MAKE THOSE PAYMENTS AND INCORPORATE THE PRODUCTION INTO THE COMMUNITY SOLAR PORTFOLIO.
BEYOND THAT, WE ALSO, UM, INTEND TO RELEASE THIS TO RESIDENTIAL EVENTUALLY, UH, WE WANTED TO START WITH COMMERCIAL, UM, AND THEN MOVE TO RESIDENTIAL.
RESIDENTIAL HAS, UM, UM, QUITE A FEW MORE CONSIDERATIONS IN TERMS OF CONSUMER PROTECTION.
UM, BUT WE ALSO HAVE TO LOOK AT THE BILLING SYSTEM AND POTENTIALLY ADJUST IT TO ALLOW FOR PROPER BILLING.
UM, THEN LOOKING AT OPERATIONAL RESOURCE REQUIREMENTS THAT, THAT MAY BE NEEDED TO FACILITATE THAT AS WELL.
'CAUSE YOU HAVE, UM, YOU KNOW, YOU HAVE SMALLER PROJECTS, BUT A HIGHER VOLUME OF PROJECTS.
WE ALSO WANT TO CONSIDER POTENTIAL OWNERSHIP FLIP MODELS, UM, THAT WOULD ALLOW THE RESIDENTIAL HOAX HOST CUSTOMER TO OWN THE SYSTEM IN THE LONG RUN.
UM, WE WANNA TAKE SOME OF THE LEARNINGS THAT WE KNOW WE'RE GOING TO GET FROM ENGAGING THE COMMUNITY FOR THE SOLAR FOR ALL GRANT, UM, OPPORTUNITY.
AND SO WE HAVE A, UM, PRETTY INTENSIVE CUSTOMER ENGAGEMENT PLANNED FOR THAT AND WE HOPE TO LEARN FROM THAT EXPERIENCE AND APPLY THAT KNOWLEDGE HERE AS WELL.
AND THEN, UM, LOOKING AT TAXES AND TAX CREDITS FOR, UM, RESIDENTIAL COULD BE A LITTLE BIT DIFFERENT AS WELL.
UM, SO WE'RE GONNA BE KICKING THOSE STAKEHOLDER PROCESSES OFF IN DECEMBER WITH A TARGETED LAUNCH DATE OF JANUARY OF 2026 FOR THE RESIDENTIAL SIDE.
AND THAT CONCLUDES MY PRESENTATION.
LET ME JUST SPECIFICALLY ASK THE QUESTION THAT SOME OF, UM, THE PUBLIC CAME AND THE PUBLIC COMMENTS TODAY WERE ABOUT A HIGHER, UM, COST FIGURE, I THINK, UH, IS IT UP TO 13 CENTS OR 21? CAN YOU ADDRESS THAT PLEASE? ARE THERE LIMITATIONS THAT STATE LAW PUTS ON US FOR WHAT WE CAN CHARGE? OR WHAT IS THAT? WHAT IS THAT ENVIRONMENT LOOKING LIKE? YEAH, SO, SO WE CHOSE 21 AS OUR, OUR IN INTRODUCTORY UH, RATE, JUST TO KEEP IT CONSISTENT WITH THE VALUE OF SOLAR RATE.
UM, AUSTIN ENERGY WANTS TO, UH, MAINTAIN A RATE THAT'S AT OUR AVOIDED COST AND DOESN'T EXCEED OUR AVOIDED COSTS BECAUSE THAT COULD LEAD TO US NOT BEING ABLE TO SCALE THIS, UM, PROGRAM.
WE WANT TO BE ABLE TO SCALE IT WITHOUT LIMITS.
WE DO PLAN TO DEPOSIT AT 20 MEGAWATTS JUST TO MAKE SURE WE HAVE THE OPERATIONAL INTEGRITY AND EVERYTHING, BUT, AND MAKE ANY ADJUSTMENTS, BUT THEN PLAN TO RE-LAUNCH IT AFTER THAT.
UM, IF WE GOT TO A POINT WHERE WE WERE PAYING BEYOND OUR AVOIDED COSTS, THEN THAT COULD POTENTIALLY PUT SOME CONSTRAINTS ON HOW MUCH WE COULD ADOPT.
UM, BUT STARTING OFF AT THAT, UH, 2021 VALUE WAS JUST A, A DECISION FOR US TO MAKE IT CONSISTENT.
DO YOU, IS THERE A POSSIBILITY THAT YOU COULD LOOK AT 2022 OR THREE? I THINK THAT WE COULD LOOK AT, UM, POTENTIALLY COMING OUTTA THE GATE WITH AN AVERAGE OF, OF THOSE THREE YEARS, 21, 22, AND 23, IT COULD MAKE IT A BIT MORE ATTRACTIVE.
RIGHT? UM, AND THEN WE COULD LINE UP, UM, WITH THE VALUE OF SOLAR IN 26 WHEN WE MAKE THAT ADJUSTMENT.
AND SO OUT OF THE GATE, AS YOU, AS YOU DESCRIBE IT, WE'RE KIND OF LOOKING AT A PILOT, WE WANNA GET SOMETHING ON THE GROUND, WE WANNA GET SOME MOMENTUM AROUND IT, AND WE WANNA MAKE IT ATTRACTIVE IN ALL FORM AND FASHION SO THAT IT, IT WOULD BE A SUCCESS.
I DO THINK IT WOULD BE HELPFUL FOR US TO LOOK AT SOME OF THE, UH, COST FIGURES
[01:50:01]
FROM THE LATER YEARS.AND THAT WAS SPECIFICALLY WHAT FOLKS WHO CAME HERE TODAY AND HAVE WRITTEN INTO US HAVE BEEN, UH, CONCERNED ABOUT.
SO IT SOUNDS LIKE YOU ARE ALREADY, UH, EVALUATING THAT AND CONSIDERING THAT.
AND, AND WE CAN COME BACK AND LET YOU KNOW.
I THINK, I THINK THIS, UH, DIOCESE WOULD APPRECIATE THAT.
UM, AND IT SOUNDS LIKE THE PUBLIC WOULD AS WELL.
QUESTIONS ALLISON? UH, COUNCIL MEMBER ALLISON ALTER.
COULD YOU PLEASE PUT UP SLIDE SIX AGAIN? THANK YOU, COUNCIL MEMBER.
UM, SO I WANNA BUILD OFF OF WHAT, UH, THE CHAIR JUST MENTIONED.
UM, SO FIRST I JUST WANNA SAY I THINK THAT THERE'S STRONG SUPPORT IN THE COMMUNITY FOR THIS PROGRAM.
UM, SO I'VE HEARD NOTHING BUT POSITIVES ABOUT DOING A SOLAR STANDARD OFFER PROGRAM.
THAT IT IS A GREAT MECHANISM FOR US TO INCREASE THE AMOUNT OF SOLAR THAT WE HAVE HERE, ALLOWS US TO TAKE ADVANTAGE OF THE ROOFTOPS THAT WE HAVE, WHICH IS A RESOURCE WE OTHERWISE CANNOT ACCESS.
IT SOLVES SOME OF THE CONTRACTING PROBLEMS, BOTH INTERNALLY FOR THE CITY, BUT ALSO FOR THOSE WHO MIGHT WANNA ENGAGE, UM, AND MAKE SOME MONEY OFF OF THOSE ROOFTOPS, AS WELL AS, UM, PRODUCING THE SOLAR ENERGY.
SO IT REALLY COMES DOWN TO WHAT ARE WE CHARGING AND THAT WILL MAKE OR BREAK THE PROGRAM.
UM, AND AS YOU NOTED, YOU PICKED 2021 FOR THE START, BUT IF YOU LOOK, UM, AT THE CHART HERE, UM, THE COSTS FOR THE TCOS SAVINGS OR THE ANCILLARY SERVICES SAVINGS OR EVEN WHAT IT COSTS FOR ENERGY IN THE SYSTEM ARE REALLY VERY DIFFERENT FROM 21, 22 AND 23.
UM, AND SO, YOU KNOW, I, I REALLY, REALLY DO WANNA JUST SHOW THESE NUMBERS SO THAT WE CAN SEE THAT, YOU KNOW, FOR THE LESS THAN ONE MEGAWATT, YOU KNOW, IF WE USE 22 AS OUR BASE, WE'RE TALKING OF A 13 CENT, UM, UM, RATE AND, YOU KNOW, ALMOST 13 CENTS FOR 23, BUT WE'RE ONLY AT LESS THAN 8 CENTS IF WE USE 21.
SO WHAT WE USE FOR THAT STANDARD MAKES A BIG DIFFERENCE.
AND WE ALREADY KNOW THAT OUR, OUR COSTS RIGHT NOW ARE HIGHER THAN THAT CONSIDERABLY.
AND I WOULD THINK THAT OUR GOAL IS TO GET THIS OFF AND GET IT GOING AND REALLY CREATE THOSE INCENTIVES, UM, TO DO THAT.
SO I VERY MUCH THINK THAT WE NEED TO BE LOOKING AT A DIFFERENT BASIS THAT CAPTURES SOME OF THAT.
NOW YOU MENTIONED THAT THAT WAS WHAT THE VALUE OF SOLAR RATE IS BASED OFF OF RIGHT NOW.
IT HAS AN ADDITIONAL VALUE FOR SOCIETAL BENEFITS ADDED TO IT AS WELL.
AND AND HOW MUCH IS THE ADDITIONAL BENEFIT? FIRST, 2.30 CENTS.
AND WHEN WILL WE BE, UM, LOOKING AT THAT AGAIN WITH THE CHANGE? UM, IN MARCH OF 2026.
WHAT IS, WHAT IS IT THAT TRIGGERS THE CHANGE IN MARCH OF 26 FOR THE SOCIETAL BENEFITS PORTION? FOR, FOR VALUE OF SOLAR? THE, YEAH, SO IN 2026, UM, IT WILL BE BASED ON THE FIVE YEAR ROLLING AVERAGE OF THE AVOIDED COST ASSESSMENTS AS WELL AS AN ADDITIONAL, UH, VALUE FOR THE SOCIETAL BENEFITS.
SO IT SOUNDS TO ME LIKE WE'RE PROBABLY ALSO UNDER, WE'RE UNDER PAYING FOR OUR VALUE OF SOLAR, BUT THAT MAY BE A SEPARATE, SEPARATE SET OF, OF ISSUES.
UM, BUT WE DEFINITELY NEED TO BE ADDRESSING, UM, THIS RATE DIFFERENCE.
UM, WE LAUNCHED THE GENERATION PLAN, WE DID ALL THESE THINGS BECAUSE THE MARKET SHIFTED DRAMATICALLY.
UM, AND SO I WOULD REALLY LIKE US TO SEE, TO SEE, YOU KNOW, WHETHER IT'S, IF IT'S 21, 22, 23, AND THEN, YOU KNOW, IN 26 WE GO TO A FIVE YEAR AVERAGE, UM, WE HAVE TO BE DOING HIGHER THAN WHAT IS PROPOSED IN THIS SPACE, UM, PROPOSAL IF WE WANT TO, TO DO THINGS.
ONE OF THE THINGS THAT CAME UP WAS THAT BECAUSE OF HOW WE'RE, WE'VE STRUCTURED THE RATE, UM, THAT IT IS TAXABLE.
UM, AND SO HOW DO WE HAVE A SENSE OF, OF WHAT THAT TAX RATE WOULD BE FOR THE STANDARD USER OF THIS AND HOW THAT THEN, YOU KNOW, HAVE WE MODELED OUT WHAT IT TAKES TO SET UP ONE OF THESE, UM, SOLAR ROOFTOP SYSTEMS? I THINK THE TAXES WOULD VARY, DEPEND ON, DEPENDING ON THE OWNER OF THE SYSTEM.
UM, BUT THERE ARE DEFINITELY, UM, TAXES, UH, BECAUSE IT'S INCOME, IT'S A MERCHANT POWER PLANT, UM, AS WELL AS PROPERTY TAXES, UM, WHICH WOULD COME FROM, YOU KNOW, THE COUNTY.
[01:55:01]
ALSO TAX ADVANTAGES AND BENEFITS BECAUSE WE'RE INCORPORATING THIS INTO A COMMUNITY SOLAR PROGRAM.IF THE SYSTEMS ARE CITED IN A DISADVANTAGED COMMUNITY, FOR EXAMPLE, THEY GET AN EXTRA 10% TAX CREDIT ON TOP OF THE 30% TAX CREDIT AVAILABLE FOR THEM.
SO, UM, THE, THE DEVELOPERS THAT I HAVE TALKED TO THAT HAVE TALKED TO THEIR LENDING AGENTS, UM, HAVE SAID THAT THIS IS A VIABLE APPROACH.
SO, SO I THINK THE APPROACH IS VIABLE.
THE QUESTION IS WHETHER THE RATE IS VIABLE.
AND SO IF WE COULD GET SOME MODELING THAT WOULD SHOW US THAT THE DIFFERENT RATES, THE VIABILITY OF THE PROJECTS, TAKING INTO CONSIDERATION AS MANY OF THESE VARIABLES AS POSSIBLE.
I UNDERSTAND SOME OF THEM MAY NOT BE POSSIBLE, UM, TO FACTOR IN, BUT AT THIS POINT, I DON'T HAVE A WAY OF ASSESSING WHETHER, YOU KNOW, A LESS THAN 8 CENT CHARGE IS A VIABLE WAY FORWARD, WHEREAS A A 13 CENT CHARGE WOULD BE, UM, YOU KNOW, WITHOUT SOME OF THAT MODELING, IT'S, IT'S KIND OF HARD TO DO.
THERE'S, THERES A LOT OF, AND I KNOW IT'LL BE A PERFECT MODEL, BUT EVEN JUST BEING ABLE TO DEMONSTRATE THAT THERE ARE SCENARIOS WHERE THIS CAN WORK AND THESE ARE THE ASSUMPTIONS WE'RE USING, I THINK WOULD BE VERY HELPFUL.
YEAH, WE COULD, WE COULD WORK ON THAT.
UM, YES, COUNCIL MEMBER RYAN ALTER IS ANY, DOES ANYONE ELSE HAVE ANY QUESTIONS? THEN YOU WILL BE OUR CLOSER.
UH, NOT TO, TO BEAT THE HORSE HERE, BUT I JUST WANNA ECHO WHAT MY COLLEAGUES HAVE SHARED.
I THINK THAT WE NEED TO REALLY LOOK AT SOME KIND OF AVERAGING OR SOMETHING, BUT TO THAT EFFECT, I WANTED TO SEE, DO YOU HAVE AT LEAST LIKE THREE QUARTERS WORTH OF DATA FOR 24 THAT HELP INFORM THIS DECISION TO SHOW US KIND OF WHERE WE ARE FOR THIS YEAR AND EVEN KIND OF WHAT YOU PREDICT THESE COST AVOIDANCE NUMBERS COULD LOOK LIKE FOR 24? AND I'M NOT SAYING RIGHT NOW, BUT IS THAT SOMETHING THAT WHEN YOU COME BACK, YOU COULD SHOW US, JUST SO WE CAN SEE HOW WE ARE TRENDING? WE, WE WOULD TYPICALLY HAVE THAT ANALYSIS DONE SOMETIME IN JANUARY FOR FY FOR FY 24.
SO THERE'S NO WAY TO JUST LOOK AT WHERE YEAR TO DATE.
I, I'LL HAVE TO, I'LL HAVE TO ASK, UM, MY FOLKS.
AND, AND YOU MENTIONED POST YURI THAT WE SAW A BIG CHANGE IN MARKET CONDITIONS AND THAT HAS LED TO KIND OF WHERE WE SEE THESE COSTS DRAMATICALLY CHANGE THOSE, IF I'M, UM, REMEMBERING CORRECTLY, THOSE WERE VERY LONG TERM, IF NOT PERMANENT CHANGES, RIGHT? WE'RE NOT GONNA SEE KIND OF A, A SHORT TERM SPIKE AND THEN A FALL BACK.
WE'RE KIND OF EXPECTING TO AT LEAST THIS IS THE NEW NORMAL.
WELL, I CAN'T SAY THAT FOR SURE.
A LOT OF THINGS CAN AFFECT THE, THE PRICING WEATHER BEING ONE AND HOW MUCH GENERATION WE END UP WITH OUR, AND WITHIN OUR LOAD ZONE TO, YOU KNOW, POTENTIALLY HAVE POSITIVE EFFECTS ON PRICE SEPARATION, THINGS LIKE THAT.
UM, YOU KNOW, CHANGE THAT VALUE OVER TIME.
HOW DO THE REVENUES FROM THE COMMUNITY SOLAR PROGRAM FACTOR INTO THESE DETERMINATIONS? WHETHER IT'S IN THE RATE SETTING OR JUST WHERE DOES THAT, WHERE IS THAT ACCOUNTED FOR? YEAH, SO THIS WOULD, UM, KIND OF BE A NEW MODEL FOR US IN TERMS OF THE COMMUNITY SOLAR PROGRAM.
'CAUSE UM, THE, THE PROJECTS THAT I SHOWED YOU BEFORE WERE FIXED COST PROJECTS ON A PPA FOR A NUMBER OF YEARS.
UM, SO THEY CAME IN AT A PREMIUM, UM, YOU KNOW, AS, AS COMPARED TO OUR, UH, THE VALUE OF THE ENERGY.
UM, AND THEN WE COLLECT A PREMIUM FROM MARKET RATE CUSTOMERS, BUT SIMULTANEOUSLY WE'RE PROVIDING BILL DISCOUNTS TO LOW INCOME CUSTOMERS.
UM, BUT OVER TIME, ESPECIALLY AFTER GURI, THAT'S, THE SCALES HAVE STARTED TO BALANCE OUT AND TIP IN THE OTHER DIRECTION, AND THAT'S KIND OF WHAT YOU PLAN FOR, FOR LONG-TERM, UM, COMMUNITY SOLAR PROGRAM.
HOWEVER, THE AVOIDED COSTS ARE ALWAYS GOING TO BE BALANCED WITH THE PURCHASE PRICE OF THE ENERGY.
SO NOW YOU'VE GOT MARKET RATE CONTRIBUTIONS AND LOW INCOME DISCOUNTS THAT ARE CHANGING THE SCALES THERE.
AND SO HOW THAT'S GONNA BALANCE OUT, UM, I THINK WE'RE PROBABLY GONNA HAVE TO CONSIDER A NEW COMMUNITY SOLAR PROGRAM DESIGN TO MAKE SURE THAT THOSE ARE ALL BALANCING OUT AND THAT, YOU KNOW, THE MONEY GETS MOVED
[02:00:01]
APPROPRIATELY.WELL, I, I THINK THIS IS A, A, A GREAT PROGRAM, VERY INNOVATIVE AND, AND REALLY HELPS ACHIEVE A LOT OF THE GOALS, YOU KNOW, WE'VE TALKED ABOUT THROUGHOUT THE DAY, GETTING MORE GENERATION THAT'S CARBON FREE IN OUR LOAD ZONE.
AND SO, UH, IS MY HOPE THAT, YOU KNOW, WE CAN TAILOR IT PROPERLY SO THAT IT IS WIDELY USED AND, AND IS AS SUCCESSFUL AS WE WANT IT TO BE.
SO I APPRECIATE THE WORK YOU'VE DONE ON THIS.
[5. Third Quarter Financial Highlights briefing. Sponsors: Mayor Pro Tem Leslie Pool, Mayor Kirk Watson, and Council Member José ''Chito'' Vela]
WILL HEAR FROM STEPHANIE ALKA ON AUSTIN ENERGY'S QUARTERLY THIRD QUARTER FINANCIAL REPORT, AND WE'LL GET SOME HIGHLIGHTS HERE.HI, GOOD MORNING, UH, CHAIR POOLE, VICE CHAIR VELA AND COMMITTEE MEMBERS.
I'M STEPHANIE KALKA, UM, AUSTIN ENERGY DIRECTOR OF FINANCE.
UM, AS YOU MENTIONED, I WILL RUN THROUGH A, UH, AN EXECUTIVE SUMMARY OF THE FINANCIAL RESULTS AS OF THE END OF JUNE FOR FISCAL YEAR 2024.
YOUR, UH, PACKET DOES INCLUDE OUR ENTIRE FINANCIAL, UM, UH, POSITION AT AS OF JUNE INCLUDES FINANCIAL STATEMENTS, BUDGET TO ACTUAL AND SOME INFORMATION ON OUR CASH AND WORKING CAPITAL.
I'M HAPPY TO ANSWER ANY FURTHER QUESTIONS YOU HAVE BEYOND THE SUMMARY, UM, BUT WE'LL RUN RIGHT INTO THAT.
AND NEXT SLIDE, ONE MORE PLEASE.
AS OF JUNE, UM, AUSTIN ENERGY'S REVENUES WERE AT 1.2 BILLION.
THAT'S 3% UNDER BUDGET, MOSTLY DUE TO LOWER POWER COST.
UM, AS WE'RE ALL AWARE, WE'VE HAD SOME MILDER WEATHER, EVEN THOUGH VERY HOT THIS SUMMER WAS, UM, LESS IMPACTFUL TO US THAN THE PRIOR YEAR.
SO WE'VE HAD SOME, UM, FAVORABLE VARIANCES IN OUR POWER COST.
UM, THAT DOES TRANSLATE INTO THE NEXT BOX TO THE RIGHT ON OUR EXPENSE SIDE.
UM, WE'RE ALSO UNDER BUDGET AND EXPENSE MOSTLY DUE TO THOSE POWER COSTS.
UM, THAT VARIANCE IS OFFSET BY, UM, SOME COSTS THAT WE'VE, UM, SEEN OUTPACE OUR BUDGET AND VEGETATION MANAGEMENT.
SO THAT'S SLIGHTLY OFFSETTING OUR FAVORABLE VARIANCE ON THE EXPENSE SIDE.
UM, BUT I THINK THE, THE BIGGER FOCUS HERE ON THE COST SIDE IS THAT THEY'VE OUTPACED OUR REVENUES BY 4% AS OF JUNE.
UM, THAT TRANSLATES INTO ABOUT $47 MILLION, UM, WHICH IS PRETTY TYPICAL FOR THE UTILITY AT THIS TIME IN THE FISCAL YEAR.
UM, WE MAKE UP A LOT OF OUR REVENUES, UM, IN THE SUMMER MONTHS, AND SO WE EXPECT TO SEE THAT, UM, VARIANCE KIND OF FLATTEN OUT OR SMOOTH OUT BY THE END OF THE FISCAL YEAR.
MOVING DOWN TO OUR POLICIES, UM, AS I'VE NOTED HERE, WE'RE NOT IN FULL COMPLIANCE OF OUR POLICIES.
WE HAVE TWO THAT I'LL, UH, POINT OUT TO YOU TODAY.
UM, WE HAVE OUR QUICK RATIO, WHICH IS OUT OF COMPLIANCE, THAT IS A LOOK BACK AT OUR, UM, FINANCIAL, UH, REPORT.
OUR AUDITED FINANCIAL REPORT, WHICH IS REALLY JUST THE UTILITIES MEASURE OF ABILITY TO PAY OUR BILLS WITH OUR ASSETS ON HAND.
UM, WE'RE SHORT IN THAT, UM, METRIC JUST SLIGHTLY, UM, WHICH LEADS INTO THE MORE MATERIAL DEFICIENCY THAT WE HAVE, WHICH IS IN OUR WORKING CAPITAL AND RESERVES.
UM, WE ARE AT 119 DAYS AS OF THE END OF JUNE, UM, COMPARED TO THE UTILITIES MINIMUM THAT WE HAVE SET THROUGH OUR FINANCIAL POLICIES, WHICH IS 150 DAYS.
UM, THAT'S ABOUT 70 MILLION SHORT AS OF THE END OF JUNE.
WE HAVE MADE UP OF SOME OF THAT DIFFERENCE SINCE THE FISCAL YEAR END.
I BELIEVE WE'RE AT ABOUT 94 DAYS, SO WE HAVE SEEN SOME MARKED IMPROVEMENT THERE.
UM, MAJORITY OF THAT IS DUE TO THE POWER SUPPLY ADJUSTMENT, WHICH IS THAT LAST BOX ON THE BOTTOM RIGHT.
UM, AS OF THE END OF JUNE, WE ARE 1 MILLION UNDERCOVERED, UM, WHICH IS A PRETTY SUBSTANTIAL DIFFERENCE FROM YEAR END.
WE STARTED THE FISCAL YEAR AT $115 MILLION UNDER RECOVERED, SO WE MADE SIGNIFICANT PROGRESS THERE, UM, WITH THE APPROPRIATE RATES THAT WE SET TO RECOVER THOSE COSTS, AND WE ALSO HAD A LOT OF HELP FROM THE WEATHER.
AND SO, UM, THOSE TWO FACTORS HAVE, UM, GIVEN US ABOUT A BREAK EVEN AS OF JUNE SINCE THIS IS JUST A BIT OUTDATED IN TIMING OF PRESENTING.
I WILL LET YOU KNOW THAT AS OF THE END OF AUGUST, WE ARE SITTING AT AN OVER RECOVERY, WHICH IS, UM, GOOD NEWS, UM, FOR OUR CUSTOMERS.
IN TERMS OF COST, WE'VE SEEN A LOT LESS COSTS IN, UM, MARKET PRICES AND CONGESTION.
SO, UM, WE ARE PRESENTING, UM, A REDUCTION TO THE POWER SUPPLY RATE AS OF, UH, OCTOBER 1ST.
SO WE'RE PUTTING THROUGH A 5% REDUCTION CONTINUING TO CLOSELY MONITOR THOSE COSTS.
SEPTEMBER IS TYPICALLY AN UNDERCOVERED PERIOD, AND SO AS WE CLOSE OUT THAT MONTH, WE'LL LOOK TO, UM, ADJUSTING THE RATE, UM, AS NECESSARY TO, UM, SMOOTH THAT OUT.
BUT THE GOOD NEWS IS, IS THAT WE'VE RECOVERED THAT LARGE UNDER RECOVERY AND SO, UM, IT'S HELPED OUR CASH POSITION AS WELL.
[02:05:03]
THAT CONCLUDES THE SUMMARY.HAPPY TO TAKE ANY QUESTIONS OR ANY OTHER INFO IN THE SLIDES.
WELL, I JUST WANTED TO FOCUS AND EMPHASIZE THE FACT THAT WE, UM, UH, HERE ON THE DAIS BROUGHT SOME, THOSE WERE HARD VOTES, BUT I THINK THE POLICY CHANGES THAT WERE MADE IN ORDER TO SUPPORT AUSTIN ENERGY IN THE UNDERAGE UH, RECOVERY HAVE REALLY PROVED OUT AND CONGRATULATIONS TO ENERGY FOR, FOR GETTING, UH, WITHIN, UH, SPIT AND DISTANCE OF BREAKING EVEN.
AND DID YOU SAY THAT THERE WILL BE A SMALL REDUCTION IN, UH, THE RATES THERE WILL BE A 5% EFFECTIVE OCTOBER 1ST? UM, WE'RE SITTING AT THE END OF AUGUST IN AN OVER RECOVERED POSITION, AND THAT'S REALLY DUE AGAIN TO THE, THE MILDER TEMPERATURES.
CONGESTION WAS DOWN OVER THE FISCAL YEAR.
UM, AND SO WE, WE NORMALLY WOULD WANNA BE WELL POSITIONED FOR A, A LARGE UNDER RECOVERY OVER THE SUMMER, AND THE GOOD NEWS IS, IS THAT DID NOT PAN OUT AND SO THAT OVER RECOVERY IS SITTING AND SO WE'LL, UM, UH, CHIP AWAY AT THAT AS WE RETURN THAT, UH, TO OUR CUSTOMERS THROUGH THEIR BILLS STARTING OCTOBER 1ST.
AND I APPRECIATE THE AGILITY THAT, UM, THAT YOU ALL ARE DEMONSTRATING AND RESPONDING TO THAT, SO WE DON'T HAVE TO WAIT TO GET THAT OVER RECOVERY, UM, BACK INTO OUR CONSUMERS POCKETS.
ANY QUESTIONS ON THE Q3 FISCAL? YES.
COUNCIL MEMBER RYAN ALTER, WHAT IS THE TYPICAL SAVINGS TO A CUSTOMER WHEN WE TALK ABOUT THAT 5%, WHAT DOES THAT ACTUALLY LOOK LIKE IN A BILL? IT'S, I THINK IT'S JUST UNDER $2 PER MONTH ON THE TYPICAL RESIDENTIAL CUSTOMER BILL.
AND THEN WHAT DOES THAT LOOK LIKE? SYSTEM-WIDE IN TERMS OF REDUCED REVENUE TO THE UTILITY, THE 5%, UM, I DON'T WANNA DO MATH RIGHT ON HAND, BUT
AND SO I'M IMAGINING THAT WOULD GIVE BACK, UM, YOU KNOW, A PORTION OF THAT UNDER RECOVERY.
AGAIN, WE'RE NOT LOOKING TO, UM, HAVE VOLATILITY IN RATES.
AND SO TO SMOOTH THAT OUT, THE 5% WILL GIVE US, UM, A GOOD STARTING POINT TO KIND OF SEE WHAT SEPTEMBER HOLDS FOR US.
UM, BUT I CERTAINLY CAN RUN THOSE NUMBERS FOR YOU AND GET BACK TO YOU ON THAT.
ANY OTHER QUESTIONS? COUNCIL MEMBER ALLISON ALTER, UM, WOULD YOU BE ABLE TO JUST GIVE US A LITTLE BIT MORE DETAILED NUMBERS THAT YOU SEND AFTERWARDS ABOUT WHERE WE ARE AS OF NOW, INCLUDING THE JULY AND AUGUST NUMBERS IN WRITING FOR THE, UH, POWER SUPPLIES FOR POWER SUPPLY? YEAH, ABSOLUTELY.
SO, UM, AS OF THE END OF JUNE PER THE PRESENTATION, WE ARE 1 MILLION, UM, UNDERCOVERED, UM, JULY WE WERE AT 20 OVER AND THEN AS OF THE END OF AUGUST WE WERE AT ABOUT 32 OVER.
[6. Third Quarter Operations Highlights briefing. Sponsors: Mayor Pro Tem Leslie Pool, Mayor Kirk Watson, and Council Member José ''Chito'' Vela]
PRESENTATION, UH, WE'RE BRINGING LISA MARTIN BACK UP.SHE WILL GIVE US THE Q3 OPERATIONS UPDATE, SOME HIGHLIGHTS ON OPERATIONS FOR THE THIRD QUARTER.
THANK YOU, MS. MARTIN? YES MA'AM.
CHAIR POOL, UH, LISA MARTIN, CHIEF OPERATING OFFICER.
UM, AND I WILL JUST HIT THE HIGHLIGHTS OF THE AUSTIN ENERGY Q3, UH, OPERATIONS UPDATE.
JUST AS A REMINDER, THIS IS FOR APRIL, MAY AND JUNE OF 2024.
IF YOU COULD, UH, FLIP ONE MORE SLIDE PLEASE TO OUR EXECUTIVE SUMMARY.
SO AS WE'RE ENTERING INTO FALL, UM, WE'RE ACTUALLY LOOKING BACK AT DATA THAT WAS PRIOR TO GOING INTO THE SUMMER.
UM, AND DURING THAT PERIOD OF TIME WE HAD OUR RENEWABLE PRODUCTION AND OUR CARBON FREE PRODUCTIONS WERE ON TARGET AT 50% AGGREGATE RENEWABLE AND 67% CARBON FREE GENERATION, BOTH AS A PERCENTAGE OF LOAD.
UM, THOSE NUMBERS ARE REFLECTIVE OF, UH, THE MAINTENANCE THAT WAS GOING ON FOR THE GENERATORS.
UH, THE CARBON FREE PRODUCTION TARGET, UH, SPECIFICALLY IMPACTED BY THE, UH, NUCLEAR, UM, OUTPUT AND NUCLEAR, UH, AT STP AS WELL AS, UM, FAYETTE AND SANDHILL DID ALL HAVE EXPECTED PLAN MAINTENANCE, UH, PREPARING FOR THE SUMMER MONTHS.
UM, AND THEN MY FINAL POINT IS SIMPLY THAT THE RELIABILITY PERFORMANCE TREND IS STABLE.
THAT'S REALLY FOCUSING ON OUR DISTRIBUTION RELIABILITY.
UM, WHEN YOU LOOK AT THOSE NUMBERS, YOU WILL SEE THAT THEY ARE GENERALLY THE SAME AS THE LAST QUARTER WITH A SLIGHT UPTICK IN OUTAGE FREQUENCY, BUT THAT WAS 61% DUE TO WEATHER.
UM, YOU'LL RECALL WE HAD OUR FAIR SHARE OF STORMS IN MAY AND JUNE.
THE REST OF THE SLIDES SHOW THE TYPICAL DATA YOU'RE USED TO SEEING ON THE ENVIRONMENTAL RELIABILITY AND STRATEGIC METRICS.
UM, AND THERE IS SOME DATA IN THERE INCLUDED ON THE OPERATIONAL, UH, AVAILABILITY AND USAGE OF ELECTRIC VEHICLE INFRASTRUCTURE, WHICH WAS A RECENT REQUEST FROM THE ELECTRIC UTILITY COMMISSION.
I'LL TAKE ANY QUESTIONS YOU MAY HAVE.
OTHERWISE THE DATA IS IN FRONT OF YOU.
COUNCIL MEMBER RYAN, ALTER APOLOGIES.
UM, I'M CURIOUS, SLIDE SIX THAT YOU HAVE THE CARBON FREE GENERATION AS A PERCENTAGE OF LOAD.
IT SEEMS LIKE SINCE KIND OF PEAK IN 2022, WE'VE SEEN A STEADY BUT NOTICEABLE DECLINE.
[02:10:01]
THAT TO JUST INCREASED LOW GROWTH THAT HASN'T BEEN OFFSET BY SOME RENEWABLE EITHER PPA OR OTHERWISE? OR WHAT, WHAT WOULD YOU ATTRIBUTE THAT? YEAH.UM, OUR TEAMS HAVE ATTRIBUTED THIS TO A COUPLE OF DIFFERENT THINGS.
LOAD GROWTH IS ONE OF THE ITEMS. UM, BUT ALSO WE'RE SEEING, UM, MORE CURTAILMENTS OF THE, UH, RENEWABLE ENERGY, UM, ESPECIALLY IF IT'S LOCATED IN, UH, AREAS THAT CANNOT GET TO, UM, THE LOAD POCKETS HERE IN AUSTIN.
ANY QUESTIONS? ANY OTHER QUESTIONS? YES.
COUNCIL MEMBER, VALLA RELATED TO THE CURTAILMENT, IS THAT, UH, TRANSMISSION, UH, PROBLEMS? YES.
OFTEN IT'S RELATED TO TRANSMISSION.
UM, THERE ARE TIMES WHEN THERE'S JUST, UH, AN ABUNDANCE OF OVERSUPPLY ON REALLY LOW DEMAND DAYS, BUT MORE OFTEN WE'RE SEEING CURTAILMENTS DUE TO, UH, TRANSMISSION.
AND IS THAT FROM THE WEST TO, UH, THE KIND OF MORE CENTRAL TEXAS? UM, OFTEN, YES.
UM, WE'RE STARTING TO SEE MORE, UH, CURTAILMENTS FROM, UH, SOUTH AS WELL WIND TRYING TO WAKE UP TO THE CENTRAL FROM THE WIND.
UH, THE COASTAL WIND DOWN IN SOUTH TEXAS.
IS ALSO GETTING CURTAILED, HUH? YES.
WOW, THAT'S VERY DISAPPOINTING.
UM, THANK YOU TO OUR STAFF WITH AUSTIN ENERGY.
THANK YOU TO THE DAAS FOR GOOD QUESTIONS.
AND AT WHAT TIME IS IT? 11:12 AM I CALLED THE, THIS MEETING ADJOURNED.