[00:00:03]
[CALL MEETING TO ORDER]
UH, WE'RE CALLING THIS MEETING OF THE RESOURCE MANAGEMENT COMMISSION TO ORDER, UM, THE, WE HAVE A QUORUM.I WILL ALSO MENTION THAT WE HAVE A VERY MEATY AGENDA THIS EVENING.
I THINK THERE WAS 105 PAGES IN YOUR PACKET.
UH, AT LEAST FOUR PRESENTATIONS.
SO, UM, I WILL KINDLY ASK THAT, UH, COMMISSIONERS GIVE THE PRESENTERS, UH, TIME TO GO THROUGH THEIR PRESENTATIONS AND HOLD QUESTIONS FOR THE END IN THE, UM, IN THE NAME OF EXPEDIENCY.
DO WE DON'T HAVE ANY PUBLIC COMMENTS SIGNED UP, IS THAT CORRECT? CORRECT.
UM, AND THEN ALSO JUST NOTE THAT WE'RE GOING TO SH TO, UM, JUGGLE THE ORDER JUST A BIT.
WE'RE GONNA DO, UM, ITEM 1, 2, 3, AND THEN FOLLOWING THREE.
WE'LL, WE'LL SKIP TO FIVE AND THEN CONTINUE WITH FOUR AND SIX.
[1. Approve the minutes of the Resource Management Commission Meeting on May 20, 2025.]
ITEM ON THE AGENDA IS APPROVAL OF THE MINUTES.YOU SHOULD HAVE RECEIVED A COPY IN YOUR PACKET.
UH, I'LL BE LOOKING FOR A MOTION.
UM, MOTION BY COMMISSIONER SILVERSTEIN.
UM, ANY DISCUSSION AROUND THE MINUTES? HEARING NONE, UH, WE'LL CALL FOR SHOW OF HANDS.
PLEASE RAISE YOUR HAND IF IN FAVOR OF APPROVING THE MINUTES.
[2. Recommend approval of the Austin Water Capital Improvement Projects located in the Drinking Water Protection Zone for approval to include in the 5-year Capital spending plan as required by Financial Policy #8.]
NUMBER TWO, RECOMMEND APPROVAL OF THE AUSTIN WATER CAPITAL IMPROVEMENT PROJECTS LOCATED IN THE DRINKING WATER PROTECTION ZONE, UH, FOR THE FIVE-YEAR CAPITAL SPENDING PLAN.DO WE HAVE AUSTIN WATER HERE TO TALK TO US ABOUT THIS? YES, PLEASE COME UP.
THANK YOU FOR THE OPPORTUNITY TO SPEAK WITH YOU TODAY.
MY NAME IS FRED GO, FINANCIAL MANAGER FOR THE CITY OF AUSTIN IN AUSTIN WATER DEPARTMENT.
JOINING ME TONIGHT IS TINA ROMERO, UM, FINANCIAL MANAGEMENT DIVISION MANAGER FROM AUSTIN WATER AND MARTIN TOWER INFRASTRUCTURE MANAGEMENT DIVISION MANAGER FROM AUSTIN WATER.
AND TONIGHT WE WILL PRESENT A SEVEN PAGE MEMO FOR YOUR REVIEW REGARDING AUSTIN WATER FINANCIAL POLICY NUMBER EIGHT, UM, WHICH PLAYS A KEY ROLE IN SUPPORT SUSTAINABILITY AND EFFICIENCY OF OUR WATER RESOURCES.
UH, IN ALIGNMENT WITH THIS POLICY, AUSTIN WATER IS REQUIRED TO PRESENT CAPITAL IMPROVEMENT PROJECTS LOCATED IN THE DRINKING WATER PROTECT ZONE AS PART OF THE ANNUAL BUDGET PROCESS.
THESE CAPITAL PROJECTS INCLUDE NEW WATER AND WASTE WATER TREATMENT PLANS, CAPITAL EXPANSIONS, AND OTHER GROWTH RELATED IMPROVEMENTS.
AS PART OF THE CITY OF AL'S BUDGET APPROVAL PROCESS, AL WATERS SUBMIT A FIVE YEAR CAPITAL IMPROVEMENT PROJECTS SPENDING PLAN EACH YEAR.
THIS YEAR'S PLAN COVERS FY 2026 TO FY 2030.
THE MEMO YOU RECEIVED INCLUDES A SUB OF SIP PROJECTS LOCATED WITHIN THE DRINKING WATER PROTECT ZONE.
THESE PROJECTS UNNECESSARY TO SUPPORT SERVICE NEEDS, MAINTAINS SYSTEM RELIABILITY, AND MEET AUSTIN WATER STANDARDS FOR, UH, OPERABILITY AND CUSTOMER SERVICE.
WE HAVE LISTED A TOTAL OF 15 PROJECTS IN TABLE ONE WITH A COMBINED FIVE YEAR SPENDING PLAN OF $78 MILLION.
10 OF THESE PROJECTS, UH, CARRY OVERS FROM PREVIOUS CIP CYCLE WHILE FO PROJECTS ARE NEW TO THIS YEAR'S PLAN AND ARE MARKED WITH AN AS RISK IN TABLE A ONE.
WE HAVE ALSO INCLUDED PROJECT SPENDING BEYOND THE FIVE YEAR PERIOD FOR REFERENCE A LOCATION MAP ON THE FINAL PAGE OF THE MEMO SHOWS WHERE EACH OF THE 15 PROJECTS IS SITUATED WITHIN THE DRINKING WATER PROTECT ZONE IN COMPLIANCE WITH AUSTIN WATER FINANCIAL POLICY NUMBER EIGHT.
WE ARE INFORMING YOU OF THESE PROJECTS AND WELCOME ANY QUESTIONS YOU MAY HAVE ABOUT THE INDIVIDUAL ITEMS. THANK YOU.
[00:05:01]
SO MUCH.UH, COMMISSIONERS, ARE THERE QUESTIONS? YES.
UM, THANK YOU FOR, FOR SHARING THIS MATERIAL.
WHEN WE LOOK AT THE MAP, IS THE DRINKING WATER PROTECTION ZONE ENTIRELY TO THE WEST? ARE THERE NO DRINKING WATER UNDERGROUND TO BE PROTECTED? IS, IS EVERYTHING ON THE EAST AND NORTH JUST PIPE? YEAH.
I'M THE DIVISION MANAGER FOR THE INFRASTRUCTURE MANAGEMENT DIVISION.
THE SHORT ANSWER IS THAT THE DRINKING WATER PROTECTION ZONE IS, UH, SPECIFICALLY DEFINED AND THAT AREA THAT IS DEFINED IS WHAT'S SHOWN IN THAT ORANGE AND IT IS TO THE WEST.
AND, AND DO WE HAVE ALL OF THE WATER SOURCES FOR AUSTIN WATER ARE ON THE WEST AND AND SOUTH OF THE RIVER AND THERE EVERYTHING ELSE IS JUST CUSTOMERS.
IS THAT CORRECT? AS DEFINED BY THE DRINKING WATER PROTECTION ZONE BOUNDARIES FOR GROUNDWATER PROTECTION? THAT'S CORRECT.
OTHER QUESTIONS? YES, VICE CHAIR ROBBINS, UH, IS THERE ANY, UH, ESTIMATED RATE IMPACT? GOOD AFTERNOON.
TINA ROMERO WITH AUSTIN WATER.
UM, THESE PROJECTS, SINCE 10 OF THEM WERE ALREADY INCLUDED IN THE PREVIOUS YEAR.
UM, WE ANTICIPATE NO RATE IMPACTS, UH, TO THE NEW PROPOSED PLAN.
UH, I HAVE A QUESTION, UH, REGARDING THE, THE FIVE THAT ARE NEW TO, TO THIS YEAR.
CAN YOU GIVE JUST A VERY BRIEF, UH, OUTLINE OF WHAT THOSE FIVE PROJECTS DO? YEAH, GOOD EVENING.
AGAIN, MY NAME IS MARTIN TOWER.
I AM, UH, DIVISION MANAGER FOR INFRASTRUCTURE MANAGEMENT HERE AT AUSTIN WATER.
IF WE LOOK AT THE MAP ON THE FINAL PAGE OF THE, OF THE DOCUMENT THAT WAS IN YOUR BACKUP, UM, YOU'LL SEE THAT THERE ARE ONE, TWO THROUGH FIVE OF THE YELLOW BOXES HAVE RED STARS, AND THOSE ARE THE ONES THAT I WOULD DRAW YOUR ATTENTION TO.
SO WORKING FROM MAYBE THE TOP LEFT AND THEN, UH, KIND OF CLOCKWISE FROM THERE.
WE HAVE THE, UH, PROJECT 3 2 1 2 0.178 TXDOT LOOP 360 AT WESTLAKE DRIVE, WATER WASTEWATER RELOCATION.
THAT'S, UH, PRETTY TYPICAL OF SOME OF THE PROJECTS ON HERE IN WHICH WE ARE PARTICIPATING IN A TXDOT DRIVEN PROJECT, AND WE'RE TAKING ADVANTAGE OF THE OPPORTUNITY TO, IN WHICH THE ROAD WILL BE DISTURBED TO INSTALL, UM, LARGER CAPACITY PIPES SO THAT WE DON'T HAVE TO COME IN LATER AND DISTURB IT AND, YOU KNOW, GET AHEAD OF SOME OF THE SERVICE ISSUES THAT WE MIGHT BE EXPERIENCING OUT THERE AS WE GO TO THE RIGHT TO, UH, 6 9 3 5 0.088 SMALL DIAMETER WATER LINE REPLACEMENT PROGRAM.
THAT'S REALLY A GENERAL, LIKE A MASTER SERVICES AGREEMENT CONTRACT THAT APPLIES TO OUR ENTIRE, UM, WATER PIPE NETWORK SERVICE AREA, WHICH WOULD INCLUDE ALSO THIS DRINK WATER PROTECTION ZONE.
SO THAT'S AN INDEFINITE DELIVERY, INDEFINITE QUANTITY MASTER SERVICES AGREEMENT THAT WE USE TO ADDRESS, UH, PIPE REPAIRS ALL OVER THE CITY.
UM, BUT IT ALSO COULD IMPACT, UH, SOME OF THE, THE LARGER PIPE PROJECTS THAT ARE GOING ON AS WELL.
UM, AS WE WORK OUR WAY DOWN, WE'VE GOT THE 2 0 1 5 0.118 DAVIS WATER TREATMENT PLANT, MEDIUM SERVICE PUMP STATION EXPANSION THAT'S RIGHT THERE IN ONE OF OUR THREE MAJOR WATER TREATMENT PLANTS, THE DAVIS WATER TREATMENT PLANT.
AND THAT WOULD BE EXPANDING OUR PUMPING CAPACITY AT THAT WATER TREATMENT PLANT.
UM, AND AS WE GO TO THE ONE BELOW IT, 6 9 4 3 0.072 E NS WASTEWATER REPLACEMENT, THAT'S, UH, AGAIN, A WASTEWATER ENLARGEMENT PROJECT, UH, FOLLOWING ON SOME OF THE, THE WORK THAT'S GOING ON THERE.
AND THEN LASTLY, WE HAVE ANOTHER TRANSPORTATION DRIVEN PROJECT IN, UM, 11 8 8, 7 0.03 SOUTH LAMAR BOULEVARD CORRIDOR, BARTON SPRINGS ROAD TO US TWO 90.
SO A LOT OF PARTICIPATION IN TRANSPORTATION DRIVEN PROJECTS WHERE WE WANT TO KIND OF DIG ONCE.
THANK, THANK YOU COMMISSIONER SILVERSTEIN.
SO HOW MUCH MONEY DO YOU SAVE AND TIME IN TERMS OF CAPITAL COSTS BY DOING THE SOMEONE ELSE'S PAYING TO OPEN UP THE ROAD? LET'S, LET'S BE PIGGYBACK ON THAT.
YOU KNOW, I, I GUESS I DON'T HAVE HARD NUMBERS IN FRONT OF ME, BUT ANECDOTALLY, YOU KNOW, WE WOULD SAVE AROUND 40, 30, 40% IN THESE KIND OF, UH, COSTS ASSOCIATED WITH
[00:10:01]
PROJECT DELIVERY, PROJECT MANAGEMENT, UM, ALL THE OTHER KIND OF MOBILIZATION, UH, COSTS, THE DIRECT COSTS OF COURSE, OF THE, THE PIPE WORK THAT'S IN THE RIGHT OF WAY, WE WOULD STILL PAY, BUT, UH, BUT IT'S, IT'S SAVINGS THAT ARE NOT INSIGNIFICANT.AND I THINK MOST NOTABLY TO THE COMMUNITY, UH, OR AT LEAST EQUALLY NOTABLY, IS THAT MINIMIZING DISTURBANCE.
UH, ANY OTHER QUESTIONS FROM COMMISSION? OKAY.
HEARING NONE, I'LL ENTERTAIN A MOTION SO I MOVE SECOND.
IT'S BEEN MOVED BY COMMISSIONER SILVERSTEIN AND SECONDED BY VICE CHAIR ROBBINS, UH, TO ADOPT THE AUSTIN WATER CAPITAL IMPROVEMENT PROJECTS.
UH, I WILL TAKE A SHOW OF HANDS.
UH, THE, THE MOTION PASSES UNANIMOUSLY.
[3. Staff Briefing regarding the 2025 Atmos Energy rate case and discussion on policies for future rate case and franchise agreement negotiations by Marija Norton, City Controller, Financial Services Department and Freddy Herrera, outside counsel, Herrera Law & Associates, PLLC.]
NUMBER THREE, WHICH IS A STAFF BRIEFING REGARDING THE 2025 AT MS. ENERGY RAPE CASE.MS. NORTON, PLEASE INDULGE US.
MY NAME IS MARIA NORTON AND I AM HERE WITH, UH, FRED CITY CONTROLLER.
I'M HERE WITH FREDDIE HERRA WITH HERRA LAW AND ASSOCIATES TO PROVIDE A HIGH LEVEL SUMMARY OF THE 2025 ATMOS ENERGY RATE CASE.
AND THEN WE'LL FOLLOW THAT UP WITH A STAFF DISCUSSION, UM, ON GAS UTILITY FRANCHISES.
UM, SO I'M GONNA INVITE MR. HERRA OVER HERE TO, UH, BASICALLY BRIEF US ON THE ATMOSPHERE CASE.
AND, AND THANKS FOR THE INVITE TO COME MAKE A PRESENTATION TO YOU GUYS.
UH, MY UNDERSTANDING IS THAT YOU'VE JUST NOW OBTAINED JURISDICTION OVER GAS MATTERS OR GAS UTILITY MATTERS.
UH, AS YOU KNOW, JUST A LITTLE BIT OF BACKGROUND ABOUT OURSELVES.
WE'RE A SMALL BOUTIQUE FIRM IN AUSTIN.
WE'VE REPRESENTED AUSTIN AS PART OF A GROUP OF THE CITIES CALLED THE ATMO, TEXAS MUNICIPALITIES OR ATM.
UH, AND EVEN I GET SOMETIMES CONFUSED WHEN I LOOK AT IT AND THINK, WELL, DOES THAT MEAN ATMOS OR NOT? WHO IS THIS? UH, BUT WE REPRESENTED AUSTIN AS PART OF THAT GROUP IN ATMOS MOST RECENT, UH, RATE PROCEEDING BEFORE THE, UH, RAILROAD COMMISSION.
AS YOU MAY KNOW, IF NOT, YOU'LL LEARN VERY QUICKLY.
CITIES HAVE ORIGINAL JURISDICTION OVER A UTILITIES RATES WITHIN THE CITY, AND THE RAILROAD COMMISSION HAS JURISDICTION OVER RATES OUTSIDE THE CITY.
UH, THE CITY WILL HAVE ALL TOLD FROM START TO FINISH, FROM THE FILING OF THE APPLICATION TO THE TIME THAT A DECISION IS, IS REQUIRED BY THE CITY, 125 DAYS TO MAKE A DECISION.
UH, THE RAILROAD COMMISSION GETS 185 DAYS IN EITHER EVENT, NEITHER REGULATORY AUTHORITY GETS THE ENTIRETY OF THE 125 WITH 185, BECAUSE YOU HAVE TO HAVE REPORTS, TESTIMONY FILINGS TO BE MADE WELL BEFORE THAT.
UH, BEFORE YOU GET THAT, UH, IF YOU WOULD GO TO THE NEXT SLIDE, PLEASE, UH, KIND OF A BUSY SLIDE.
UH, AND YOU CAN LOOK AT IT AT YOUR LEISURE.
I'M NOT GONNA SPEND A LOT OF TIME ON IT THAT THAT SHOWS YOU THE TIMELINE THAT WE TYPICALLY DEAL WITH IN RATE PROCEEDS BEFORE THE RAILROAD COMMISSION, UH, AND CITIES FOR THAT MATTER WITH BEFORE CITIES, IT'S NOT AS STRUCTURED BECAUSE IT'S NOT A, AN ADMINISTRATIVE AGENCY OF THE STATE.
MOST OF THE PROCESSING THAT TAKES PLACE IS AT THE RAILROAD COMMISSION.
IF THE CITIES AND ATMOS, OR WHATEVER UTILITY MAY BE CANNOT AGREE ON WHAT THE CHANGE IN RATES SHOULD BE, YOU'RE GONNA END UP AT THE RAILROAD COMMISSION.
SO IT'S CRUCIAL FOR CITIES TO PARTICIPATE AS EARLY AS POSSIBLE IN THE PROCEEDINGS BEFORE THE RAILROAD COMMISSION.
UH, THAT SCHEDULE SHOWS YOU WHEN WE STARTED AND WHEN WE ENDED.
AND JUST AS, AS A COINCIDENCE, UH, THE RAILROAD COMMISSION TODAY FINALLY APPROVED THE SETTLEMENT THAT WE REACHED IN MAY TOWARD THE END OF MAY, SOMEWHERE IN THAT TIMEFRAME.
UH, SO THEY, THEY, THEY GO REALLY QUICKLY AND THEN THEY KIND OF SLOW DOWN AT THE END BEFORE YOU GET A DECISION FROM THE REGULATORY AUTHORITY.
BUT THERE'S ALWAYS A STATUTORY CONSTRAINT ON WHEN THE REGULATORY AUTHORITY HAS TO MAKE ITS DECISION.
UH, IN THIS PARTICULAR CASE, IF YOU GO TO THE NEXT SLIDE, PLEASE, AND AT ANY TIME IF YOU HAVE ANY QUESTIONS, PLEASE FEEL FREE TO INTERRUPT ME WITH WHATEVER THE QUESTION MAY BE.
UH, IN THIS PARTICULAR PROCEEDING WITH REGARD TO THE ATM CITIES, AND IT'S ABOUT 50 CITIES, ALL TOLD,
[00:15:01]
UH, AT WAS SEEKING AN INCREASE OF ABOUT $16 MILLION.AND AT THE END OF THE DAY, WHAT WE AGREED TO WAS AN INCREASE OF ABOUT $4 MILLION.
UH, ONE OF THE THINGS THAT MAKES A HUGE DIFFERENCE IN WHAT THE INCREASE IS, IS THE RETURN ON EQUITY AND THE OVERALL RATE OF RETURN.
IN THIS PARTICULAR CASE, UH, AT WAS SEEKING A RETURN ON EQUITY OF 10.65%.
THERE'S SOME OTHER NUMBERS THAT GO INTO HOW YOU CALCULATE THE RATE OF RETURN DEALING WITH A CAPITALIST STRUCTURE.
UH, THEY WERE SEEKING A CAPITALIST STRUCTURE THAT WE ULTIMATELY AGREED TO THAT WAS HEAVILY WEIGHED TOWARD EQUITY, GIVEN THEM AN OVERALL RATE OF RETURN OF ABOUT 8.23.
WHAT WE AGREED TO WAS A RETURN ON EQUITY OF 9.8 WITH THEIR CAPITAL STRUCTURE.
THAT IS WORTH ABOUT, IN AND OF ITSELF, $5 MILLION.
MANY OTHER ADJUSTMENTS TO GET FROM THE 16 MILLION TO THE 4 MILLION.
ONE OF THE MAJOR DIFFERENCES THAT YOU'LL SEE HERE IS IF YOU LOOK AT THE WAY THAT THE INCREASES ARE LAID OUT UNDER THE, THE RED FONT, UH, THE COLUMN ATMO AS FILED REVENUE, PROPOSED REVENUE, YOU'LL SEE THAT ATMOS WAS PROPOSING THAT THE INCREASE BE CARRIED BY, EXCUSE ME, THE RESIDENTIAL CLASS WITH NO CHANGE TO RATES FOR THE COMMERCIAL OR THE INDUSTRIAL AND TRANSPORTATION CLASS.
UH, IN, IN, I, I'VE BEEN DOING THIS NOW FOR 42 YEARS AND REPRESENTING CITIES PROBABLY SINCE ABOUT 2006 OR SO.
AND WE TYPICALLY FOCUS ON THE RESIDENTIAL CLASS, AND WE DO SO BECAUSE THAT IS THE CLASS THAT IS THE LEAST REPRESENTED IN PROCEEDINGS BEFORE THE RAILROAD COMMISSION OR FOR THAT MATTER, THE PUC.
UH, SO WE TRY TO FOCUS ON THE EFFECT THAT A CHANGE IN RATES IS GOING TO HAVE ON RESIDENTIAL CUSTOMERS.
UH, AND WE ALSO HAVE A, A DIFFERENT VIEW OF HOW COSTS ARE TO BE, UH, FUNCTIONALIZED AND THEN ALLOCATED TO THE DIFFERENT CUSTOMER CLASSES.
UH, ATMOSPHERE'S VIEW AS, AS YOU CAN TELL FROM FROM THE NUMBERS THERE LOADS THE INCREASE ON THE RESIDENTIAL CLASS AND NOT SO MUCH ON THE COMMERCIAL AND INDUSTRIAL.
AND THEY CLEARLY HAVE A DIFFERENT PERSPECTIVE AT A DIFFERENT VIEW OF, OF, OF THAT.
UH, AT THE END OF THE DAY, WHERE WE LANDED WAS THAT THE RESIDENTIAL CLASS GOT A, A SLIGHT DECREASE ABOUT NOT JUST UNDER 1% DECREASE.
THE COMMERCIAL CLASS GOT ABOUT A 19% INCREASE, UH, AND THEN THE PER THE INDUSTRIAL AND TRANSPORTATION, THE NU THE PERCENTAGE SOUNDS HUGE, THE DOLLARS ARE NOT, UH, THE INDUSTRIAL TRANSPORTATION CLASS GOT AN INCREASE OF ABOUT NOT QUITE 30%.
SO YOU CAN SEE HOW HOW SHIFTING COSTS, HOW THEY'RE ALLOCATED AFFECTS THE END RESULT.
AT THE END OF THE DAY, ATMOS WALKED OUTTA THE DOOR WITH AN INCREASE OF ABOUT A LITTLE OVER $4 MILLION FOR THE ATM CITIES.
IF YOU GO TO THE NEXT SLIDE, PLEASE, THE, THESE ARE THE ACTUAL RATES THAT WERE, THAT ATMOS WAS CHARGING UNDER THE CURRENT COLUMN THAT AT WAS PROPOSED, WHAT OUR CONSULTANTS SUGGESTED THE RATES SHOULD BE UNDER ATM PROPOSED RATES.
AND AT THE END OF THE DAY, THE SETTLEMENT RATES.
AND AGAIN, WHAT YOU'LL NOTICE IS THAT THERE WERE NO CHANGES FOR THE COMMERCIAL OR THE INDUSTRIAL CLASS FOR AS PROPOSED BY ATMOS.
SOME CHANGES AS PROPOSED BY OUR CONSULTANTS.
AND THEN ULTIMATELY WHERE WE LANDED ON RATES, THE CUSTOMER CHARGE THAT, THAT YOU'LL SEE FOR UNDERCURRENT FOR, FOR ALL, ALL THE CLASSES, BUT WE FOCUSED ON, ON THE RESIDENTIAL WAS AT $47 AND 91 CENTS.
THE, WHAT, WHAT I'LL CALL THE BASE CUSTOMER CHARGE, WHERE WE STARTED FIVE, SIX YEARS AGO WAS $18 AND 85 CENTS, AS I, IF I REMEMBER CORRECTLY.
AND OVER THE COURSE OF TIME, THROUGH THESE APPLICATIONS THAT WE REFER TO AS A GRIP FILING GRIP AS AN ACRONYM, GRIP GAS RELIABILITY INFRASTRUCTURE PROGRAM, YOU WON'T FIND THAT IN THE STATUTE.
THE TECHNICAL TERM IN THE STATUTE, IN THE UTILITIES CODE IS INTERIM RATE ADJUSTMENT OR AN IRA, BUT THAT MAKES ME THINK OF RETIREMENT, WHICH I DON'T WANT TO DO.
UH, THE, THE GRIP INFUSED CUSTOMER CHARGES ARE WHAT YOU'LL SEE UNDER CURRENT, UH, AND AT WAS PROPOSED THAT WE RETAIN THAT.
WE FOCUS ON THE CUSTOMER CHARGE FOR RESIDENTIAL CUSTOMERS, FOR ALL CUSTOMERS, BUT PARTICULARLY RESIDENTIAL BECAUSE OF THE EFFECT THAT HAS ON TWO ELEMENTS.
ONE IS THE INCENTIVE TO CONSERVE, DON'T USE AS MUCH GAS, AND THEN SECONDLY, WHEN YOU LOAD UP THE CUSTOMER CHARGE, MAKE IT HIGHER, IT HAS A DISPROPORTIONATE EFFECT ON LOW INCOME AND FIXED INCOME INDIVIDUALS.
SO WE TRY TO MAKE, WE TRY TO KEEP THAT AS LOW AS POSSIBLE AS WE GO THROUGH THIS PROCESS,
[00:20:01]
AND WE HAVE THESE DISCUSSIONS WITH, WITH ATMOS, YOU'LL HEAR FROM THEM ON DIFFERENT ISSUES, BUT WE HAVE THOSE DISCUSSIONS AS WE GO THROUGH WHAT WE CALL THE RATE DESIGN PHASE OF A CASE.AND, AND BACKING UP JUST A LITTLE BIT, UH, AT, AT THE 50,000 FOOT LEVEL RATE CASES CAN BE SPLIT INTO TWO PHASES.
FIRST PHASE IS YOU IDENTIFY THE REVENUE REQUIREMENT, AND I ALWAYS DESCRIBE IT AS YOU IDENTIFY THE SIZE OF THE PIZZA, HOW BIG IS THE PIZZA, UH, AND THEN YOU COME BACK AND YOU IDENTIFY, WELL, HOW LARGE, LARGE OF A SLICE IS THIS CLASS GONNA GET? AND IN, IN THAT PARTICULAR GAME, IF YOU'RE A CUSTOMER CLASS, YOU WANT A SMALL SLICE OF PIZZA SO THAT YOUR RATES WILL BE LOWER.
UH, BUT THOSE ARE THE TWO PHASES.
GENERALLY SPEAKING OF A RATE PROCEEDING, WHAT YOU'LL SEE AT THE END OF THE DAY IS THAT THE, FOR THE RESIDENTIAL CLASS, WE REDUCED THE CUSTOMER CHARGE FROM 47.91 TO $25.
AT THIS POINT, ONCE YOU'VE IDENTIFIED WHAT THE SIZE OF THE PIE IS GONNA BE, ONCE YOU'VE IDENTIFIED HOW MUCH MONEY YOU'RE GETTING FROM EACH PARTICULAR RIGHT CLASS, IT IS PRETTY MUCH A WATERBED.
IF YOU PUSH DOWN ON THE CUSTOMER CHARGE, YOUR USAGE CHARGE IS GONNA GO UP.
IF YOU INCREASE THE CUSTOMER CHARGE, YOUR USAGE CHARGE HAS GOTTA GO DOWN.
GOING BACK TO, GOING BACK TO WHERE I STARTED, WE TRY TO INCENT CUSTOMERS TO LOSE, USE LESS RESOURCES, LESS GAS, WHETHER IT'S ELECTRIC WATER OR GAS.
AND WHAT WE DO AS A CONSEQUENCE IS INCREASE THE CUSTOMER CHARGE OF THE, UH, DECREASE THE CUSTOMER CHARGE AND INCREASE THE USAGE CHARGE.
AND I'M GONNA COME BACK TO THE NEXT SLIDE.
IF YOU SKIP FORWARD TWO SLIDES, PLEASE.
THIS SLIDE SHOWS THE EFFECT OF ATMOS PROPOSED RATES AT BARIAN USAGE LEVELS.
YOU'LL SEE THE USAGE LEVEL UNDER MONTHLY USAGE CCF.
THE AVERAGE USAGE FOR AN ATLAS RESIDENTIAL CUSTOMER IS ABOUT 33 CCF, UH, AND IT MIGHT BE GOOD JUST TO, IT'S THE FOURTH ROW, THE THIRD OR FOURTH ROW, CORRECT.
SO WHAT, WHAT YOU'LL SEE THERE, UH, AS MR. ROBBINS WAS, WAS POINTED OUT UNDER ATSS PROPOSAL, THE RESIDENTIAL, AN AVERAGE USER, UH, WOULD'VE SEEN AN INCREASE OF ABOUT 13% UNDER ATSS PROPOSAL.
IF YOU FLIP TO THE NEXT SLIDE, PLEASE, UNDER THE RATE DESIGN THAT WE PROPOSE AND THAT THE, ULTIMATELY WE AGREED TO, THE AVERAGE USER, RESIDENTIAL USER WILL SEE A DECREASE OF ABOUT 7.5% IN THEIR BILL.
NOW, THESE ARE BASE RATES, AND BY BASE RATES, WHAT I MEAN IS EXCLUDING THE COST OF GAS, COST OF GAS COMES ON TOP OF THAT.
THERE ARE SOME OTHER RIDERS THAT, THAT COME IN HERE AS WELL.
WE FOCUS ON BASE RATES TO THE EXCLUSION OF THE GAS COST, BECAUSE GAS COSTS ARE ESSENTIALLY A PASS THROUGH FOR ATMOS.
IT, IT HOLDS IT FOR A LITTLE WHILE, AND THEN IT PAYS ITS GAS SUPPLIERS.
SO IT'S NOT MONEY THAT'S GOING INTO THE ATMOSPHERE'S POCKETS.
SO WHAT WE TRY TO FOCUS ON ARE THE COSTS THAT ATMOS CAN CONTROL BOTH O AND M AND THEIR PROFIT MARGIN, WHICH IS WHY WE SHOW JUST THE CHANGE IN BASE RATES.
AND WE DON'T WANT, OFTENTIMES FOLKS WILL GET CONFUSED AND THINK THAT THE CUSTOMER CHARGE ITSELF, THE FIXED MONTHLY CHARGE, IT DOESN'T CHANGE IRRESPECTIVE OF HOW MUCH GAS YOUR USER DON'T USE.
SOME FOLKS VIEW THAT AS A BASE RATE.
IN OUR, IN OUR WORLD, IN OUR TERMINOLOGY, THAT IS NOT A BASE RATE.
IT IS PART OF THE BASE RATE THAT IS A CUSTOMER CHARGE.
AND YOU ADD TO THAT, THE CONSUMPTION CHARGE.
BUT WHAT YOU'LL SEE IS, UH, PUT INTO EFFECT THE PHILOSOPHY THAT WE TRY TO PUSH.
AND THAT IS MINIMIZE THE CUSTOMER CHARGE AS MUCH AS YOU CAN, INCREASE THE USAGE CHARGE AGAIN, AS MUCH AS YOU CAN, WHICH HAS THE EFFECT OF HELPING LOW INCOME AND FIXED INCOME INDIVIDUALS, AS WELL AS ENCOURAGING MORE CONSERVATION THAN NOTCH.
AND I TOUCHED ON VERY BRIEFLY, IF YOU GO BACK NOW TO THE, I, I THINK TWO SLIDES, PROBABLY ONE MORE THAT ONE, THAT ONE JUST SHOWS YOU A COMPARISON OF THE, UH, PROPOSED COST OF CAPITAL ELEMENTS IN A RATE CASE.
RED, RED COLUMN IS WHAT AT WAS PROPOSED.
BLUE LETTERS ARE WHAT OUR CONSULTANTS WERE PROPOSING.
AND THEN THE, THE GREEN LETTERS ARE THE SETTLEMENT NUMBERS WHERE WE LANDED 9.8% RROE.
[00:25:01]
IS THERE A DISPUTE ABOUT THE COST OF DEBT? IT'S A FIXED AMOUNT.WE CAN SEE IT, IT'S IN THE ATMOSPHERE'S BOOK.
THE DISPUTE IS ALMOST ALWAYS ON RETURN ON EQUITY.
IT IS A NUMBER THAT A VARIETY OF EXPERTS WILL LOOK AT.
AND THEY'LL, IF YOU HAVE FIVE EXPERTS, YOU'RE GONNA GET FIVE DIFFERENT RETURNS ON EQUITY THAT THEY THINK AN INVESTOR NEEDS TO BE INCENTED TO INVEST IN ATMO ENERGY STOCK.
THE CURRENT LAST APPROVED ROE WAS 9.8%.
SO ESSENTIALLY WE KEPT, KEPT THAT FLAT.
THE OVERALL RATE OF RETURN COMPARED TO WHERE THEY WERE WENT DOWN BECAUSE THE COST OF CAPITAL, THE COST OF DEBT WENT DOWN, UH, AT THE END OF THE DAY AT WAS WATER AT A RATE, UH, RATE OF RETURN OF 8.23%.
THERE WERE AT 7, 9 7, AND WE LANDED ON 7.59, UH, TO CALCULATE THEIR PROFIT MARGIN, IF YOU WILL.
AND THAT IS INTENDED TO PROVIDE ATMOS A, IN THE WORDS OF THE STATUTE, A REASONABLE OPPORTUNITY TO EARN A REASONABLE RETURN, NOT A GUARANTEE.
OFTENTIMES WE'LL LOOK AT THIS AND THINK THAT THE UTILITY WILL IS GUARANTEED TO MAKE THAT, UH, WILL NOT NECESSARILY, IF IT GETS REALLY, REALLY COLD, THEY'RE GONNA DO LIKE GANGBUSTERS.
IF IT'S A MILD WINTER, THEY'RE GONNA BE JUST LIKE, AUSTIN ENERGY'S GONNA BE, OH MY GOD, WE'RE NOT SELLING ENOUGH KILOWATT HOURS FOR THEM.
WE'RE NOT SELLING ENOUGH CCF, AND THEY WON'T HIT THE RATE OF RETURN.
ON THE OTHER HAND, COLD WINTER LIKELY GONNA HIT IT MUCH MORE READILY.
GENERALLY THAT THAT'S THE, THE RATE CASE WE JUST WENT THROUGH.
UH, ANY QUESTIONS YOU HAVE, BE HAPPY TO ANSWER 'EM.
AND IF YOU DON'T HAVE 'EM TONIGHT, GIVE 'EM TO MARIA AND I'LL BE HAPPY TO ANSWER 'EM VIA EMAIL AS WELL.
ANY QUESTIONS FOR MR? YES, COMMISSIONER SILVERSTEIN, JUST TO CONFIRM, THIS SET OF OUTCOMES APPLIES TO NOT ONLY TO THE CITY OF AUSTIN, BUT TO ALL OF THE 40 OR 50 CITIES THAT ARE PART OF THE ALLIANCE, CORRECT? THAT IS CORRECT.
UH, NEXT I WANTED TO SHARE SOME ADDITIONAL DETAILS REGARDING THE CITY'S NATURAL GAS UTILITY FRANCHISES.
UM, THIS TIMELINE WAS SHARED AT THE LAST, UM, AT THE LAST RMC MEETING AND PROVIDES AN OVERVIEW OF WHEN ALL OF THE FRANCHISE AGREEMENTS ARE GONNA EXPIRE FOR THE CITY.
AND LAST TIME, UH, THERE WAS A QUESTION ON HOW MUCH THE CITY COLLECTS IN TERMS OF FRANCHISE FEES FROM EACH OF THE UTILITIES.
SO THIS BREAKS DOWN THE 2024 COLLECTIONS FOR EACH OF THE, UH, COMPANIES.
THE NEXT FEW SLIDES ARE GONNA GO OVER, UM, THE CURRENT CITY OF AUSTIN GAS UTILITY FRANCHISES AND THE CONTENTS OF EACH, UH, THEY'RE PRETTY MUCH SIMILAR IN SCOPE.
UM, THE AGREEMENTS CAN BE FOUND ON THE LINK ON THE SLIDE.
SO EACH OF THE AGREEMENTS, UM, AS FAR AS THE PURPOSE AND SCOPE, UH, THEY'RE GONNA GRANT NON-EXCLUSIVE RIGHTS TO, UH, CONSTRUCT, OPERATE, AND MAINTAIN NATURAL GAS INFRASTRUCTURE.
USE THE CITY RIGHTS OF, UH, RIGHT OF WAY STREETS, ALLEYS, BRIDGES, PUBLIC ROUNDS, AND EACH OF THE FRANCHISES HAVE A TERM OF 10 YEAR INITIAL TERM WITH ADDITIONAL 10 YEAR RENEWAL PERIOD.
UM, AND AS FAR AS THE A FINANCIAL AGREEMENT, THE FRANCHISE FEE IS 5% OF GROSS REVENUES FOR OPERATIONS WITHIN THE CITY OF AUSTIN LIMITS.
UH, THOSE ARE PAID QUARTERLY TO THE CITY OF AUSTIN, AND THESE ARE RECOVERABLE THROUGH RATES.
SOME OF THE OPERATIONAL RESPONSIBILITIES THAT ARE WITHIN THE FRANCHISE AGREEMENTS, UH, ARE THAT THE, UH, UTILITY MUST COMPLY WITH THE CITY CODES AND PERMITTING REQUIREMENTS.
UH, THEY SHALL NOT DISCRIMINATE AGAINST APPLICANTS FOR SERVICE.
UH, THEY'RE REQUIRED TO MAINTAIN PROPERTY AND EQUIPMENT IN GOOD ORDER AND CONDITION.
UM, THEY'RE REQUIRED TO, UM, SUPPORT THE CONSERVATION OF NATURAL GAS.
UM, ACTIVELY THEY'RE REQUIRED TO ACTIVELY SEEK TO PROVIDE THE BEST MIX OF GAS SUPPLY AT THE LOWEST PRICES, CONSISTENT, UM, WITH ITS DUTY TO PROVIDE SAFE AND RELIABLE SERVICE.
AND THEY'RE REQUIRED TO MAINTAIN ADEQUATE SUPPLY OF NATURAL GAS TO MEET THE REQUIREMENTS OF THE CUSTOMERS.
AS FAR AS CITY OF AUSTIN OVERSIGHT, UH, WE DO, UH, HAVE THE ABILITY TO, UM, INSPECT AND AUDIT THE FRANCHISE FEES.
UM, THE EXPENSES OF THE FRANCHISE AUDITS ARE GONNA BE PAID BY THE COMPANY AND THEY'RE RECOVERABLE THROUGH RATES.
UH, CITY COUNCIL CAN ALSO REQUEST A MANAGEMENT AUDIT OF THE COMPANY'S OPERATIONS.
AGAIN, UH, COST OF SUCH AUDITS ARE GONNA BE, UH, CHARGE THE COMPANY AND THEIR RECOVERABLE THROUGH RATES.
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OF GAS SUPPLY ACTIVITIES RELATING TO AUSTIN, AND WE ALSO RE, UH, RECEIVE, UM, ANNUAL AUDITED STATEMENTS OF THE COMPANY.AND THEN, UM, THERE IS ALSO A PURCHASE CLAUSE THAT OUTLINES THE STEPS FOR THE CITY OF AUSTIN TO PURCHASE THE SYSTEM.
AND I'M NOT A HUNDRED PERCENT SURE IF THE APPLIES TO ALL FOUR SYSTEMS. I BELIEVE IT MIGHT BE SPECIFIC TO TGS.
AND SO, I KNOW LAST TIME THERE WAS A QUESTION ON, UM, IF THERE'S A SPECIFIC TIMELINE FOR THE TGS FRANCHISE AGREEMENT RENEWAL.
UM, THIS HIGHLIGHTS THE VERY HIGH LEVEL, UM, TIMELINE OF WHAT WE'RE PROPOSING.
UM, SO IN APRIL, UH, WE FINANCIAL SERVICES MET WITH LAW TO HAVE A KICKOFF MEETING.
AND THEN, UM, EARLIER THIS MONTH WE HAD A KICKOFF MEETING WITH, UH, VARIOUS CITY DEPARTMENTS LIKE AUSTIN ENERGY, AUSTIN WATER, UM, DEVELOPMENT SERVICES, AND, UH, TRANSPORTATION AND PUBLIC WORKS.
AND, UM, WE'RE REQUESTING THOSE DEPARTMENTS TO PROVIDE FRANCHISE AMENDMENTS, UM, AT THE END OF THIS MONTH.
UM, AND THEN WE'RE HOPING TO FINALIZE, UH, THE FRANCHISE AGREEMENT TO PRESENT IT TO COUNCIL, UM, NEXT YEAR, JULY, 2026.
UM, AND THERE'S GONNA BE A REQUIREMENT THAT THERE'S THREE COUNCIL READINGS BEFORE IT IS APPROVED.
SO WE'LL NEED TO TAKE IT TO THREE SEPARATE COUNCIL MEETINGS FOR COUNCIL TO APPROVE, BECAUSE IT IS GONNA BE AN ORDINANCE.
AND THEN, UM, WE ARE HOPING TO, UH, HAVE THE NEW FRANCHISE AGREEMENT APPROVE IN SEPTEMBER, 2026.
AND SO THIS SLIDE AGAIN, UM, IT WAS SHARED WITH THE COMMISSION LAST, UH, AT THE LAST MEETING, UM, THE GAS UTILITY POLICY CONSIDERATION.
UH, ONE ITEM THAT STAFF REQUEST IS THAT THE RMC PRIORITY RECOMMENDATIONS BE APPROVED BY COUNSEL NO LATER THAN NOVEMBER 25 FOR CONSIDERATION IN THE CURRENT TGS FRANCHISE NEGOTIATION.
ANY QUESTIONS? YES, MR. ROBBINS? YES.
VICE CHAIR ROBBINS, I, UM, TRYING TO FOCUS MY THOUGHTS HERE.
UH, THIS DOESN'T, WE SEEM TO BE, THE RMC SEEMS TO BE THE ONLY STAKEHOLDERS, UH, THAT, THAT, UH, ARE NOT CITY STAFF OR THE GAS COMPANY.
UH, AND I HOPE THAT WE HOLD AT LEAST ONE AND MAYBE MORE PUBLIC HEARINGS ON THIS.
BUT IS THERE ANY OTHER WAY THAT THE TEXAS GAS SERVICE CUSTOMERS CAN, UH, PARTICIPATE OR COMMENT BESIDES, UH, COMING TO OUR PUBLIC HEARING? UH, IN TERMS OF SETTING THE PRIORITIES OR JUST IN GENERAL FOR THE FRANCHISE NEGOTIATIONS? UH, WELL, BOTH, THEY'RE ONE AND THE SAME REALLY, BUT, SO CAN, CAN THE RMC HOLD PUBLIC HEARINGS? I KNOW THAT YOU CAN HAVE PUBLIC INPUT.
I WAS JUST WONDERING IF THAT'S SOMETHING I'M FAIRLY CERTAIN WE CAN, BUT, UH, I, I, I THINK THE COMMISSIONER'S TRYING TO ASK, DOES THE CITY CONDUCT OTHER OPPORTUNITIES FOR THE PUBLIC TO OFFER FEEDBACK ON THE FRANCHISE ISSUES BEFORE THIS GOES TO COUNCIL? UM, NOT AT THIS TIME.
WE HAVEN'T HAD ANYTHING PUT IN PLACE.
UH, THE ONLY DISCUSSIONS WE'VE HAD IS WITH OTHER DEPARTMENT STAKEHOLDERS, BUT WE CAN DISCUSS THAT WITH, UM, YOU KNOW, MAYBE LEGAL AND SEE WHAT SOME OF THE OPTIONS ARE HAVING BEEN A, UH, AN INTERVENOR IN THE, UH, IN AT LEAST TWO AND MAYBE THREE AUSTIN ENERGY RATE CASES.
UM, I CAN, UH, I, I HAVE MANY, MANY, MANY CRITICISMS OF THE UTILITY ITSELF, BUT ONE THING THAT I WILL SAY IN THEIR FAVOR IS THAT THEY WENT OUT OF THEIR WAY TO ALLOW THE PUBLIC TO ASK QUESTIONS AND TO PARTICIPATE.
UH, UM, I DON'T WANT TO SAY TOO MANY GOOD THINGS ABOUT THEM, BUT I, I I I WILL, I WILL GIVE THEM CREDIT FOR THAT.
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AND I'M WONDERING IF, UH, IF MAYBE SOMETHING SIMILAR MIGHT HAPPEN.YEAH, I THINK, I THINK WE CAN, UH, TAKE A LOOK AND COLLABORATE MAYBE ON WHAT THEY DID.
YEAH, HAVING, UM, RECOMMENDATIONS APPROVED BY COUNSEL NO LATER THAN NOVEMBER OF THIS YEAR DOES NOT GIVE VERY MUCH TIME FOR THIS, EVEN FOR THIS BODY TO, TO INPUT ON THIS PROCESS.
I MEAN, WE HAVE REALLY WOULD NEED TO APPROVE ANYTHING NO LATER THAN OCTOBER.
UM, AND SO THAT'S ONLY THREE MEETINGS AWAY FROM NOW.
SO I REALLY THINK THAT THIS IS AN IMPORTANT ISSUE.
UM, WE, WE ARE JUST NOW STARTING TO HAVE THE ABILITY TO WEIGH IN ON THESE ISSUES, AND I HOPE, I CERTAINLY TAKE THAT RESPONSIBILITY VERY SERIOUSLY AS I KNOW, UH, THE REST OF THE COMMISSION DOES AS WELL.
UM, AND I, I ECHO, UH, THE VICE CHAIR'S SENTIMENTS ABOUT FINDING WAYS TO ENCOURAGE MORE ROBUST PUBLIC PARTICIPATION THAN JUST THIS SIX TO 10 MEMBER BODY.
UM, SO, YOU KNOW, DEFINITELY WOULD LIKE TO SEE WHAT, WHAT THAT WOULD BE.
AND, AND I EXPECT TO HAVE, YOU KNOW, THIS ITEM ON, YOU KNOW, FUTURE AGENDAS.
I WOULD LIKE TO MAKE THE SUGGESTION THAT OUR RECOMMENDATIONS BE SENT TO COUNCIL EARLY NEXT YEAR, UH, AND THAT I, I REALIZE SOME OF THE REASONS WHY CITY STAFF WOULD LIKE TO HEAR THEM SOONER.
AND IT'S NOT LIKE I'M TRYING TO DRAG THIS OUT, BUT GIVEN THAT WE ARE VOLUNTEERS, GIVEN THAT THE PEOPLE THAT WILL COME TO THIS PUBLIC HEARING WILL MOSTLY BE, UH, CONSUMERS WHO ARE VOLUNTEERS OR WHO ARE NOT PAID, UH, I THINK IT WOULD BE LOGISTICALLY, UH, BETTER FOR OUR COMMISSION AND CONSUMERS IF THE, UH, DEADLINE WERE SOMETIME, UH, EARLY IN 2026.
WE'LL TAKE A LOOK AT THAT AND SEE HOW IT PLAYS OUT ON THE TIMELINE.
I JUST KNOW THE NEGOTIATIONS ARE GONNA TAKE SOME TIME, SO WE JUST WANNA MAKE SURE WE GIVE CONSIDERABLE TIME.
I, I'M NOT INSENSITIVE TO, TO IT AT ALL.
YES, THERE'S A YEAR BETWEEN THE, THE TWO ITEMS ON THE TIMELINE, UH, THE FRANCHISE AMENDMENT RECOMMENDATIONS JUNE 30TH AND THEN JULY, 2026.
SO MAYBE SOME VISIBILITY INTO WHAT HAPPENS BETWEEN NOW AND THEN.
UM, WOULD, WOULD HELP WITH THAT.
FURTHERMORE, IF IT IS POSSIBLE FOR YOU TO SHARE THE FRAMEWORK OF ISSUES THAT YOU'LL BE NEGOTIATING WITHIN THE FRANCHISE AGREEMENT, THAT WILL HELP US BECOME BETTER INFORMED AND, AND HELP US OFFER MORE EFFECTIVE INPUT ON THE, AT THE POLICY LEVEL, THE FRAMEWORK OF ISSUES OUTSIDE OF WHAT Y'ALL ARE CURRENTLY WITHIN.
WELL, IF YOU ARE, IF PART OF OUR ROLE IS TO COMMENT ON THE FRANCHISE AGREEMENT MM-HMM
AND OUTCOME, THEN WE SHOULD, WE, WE WILL NEED TO UNDERSTAND WHAT ARE ALL OF THE ISSUES BEING COVERED AND SORT OF THE PARAMETERS OF THOSE ISSUES.
ALRIGHT, UH, ANY OTHER COMMENTS OR QUESTIONS ON THIS ITEM? HEARING NONE.
[5. Presentation by Atmos Energy regarding Atmos Energy Mid-Tex Division Update by Chris Felan, VP of Rates and Regulatory Affairs and Kelly Biegler, VP of Public Affairs - Mid-Tex Division, Atmos Energy.]
MUCH, MS. NORTON, YOU WE'RE GONNA MOVE AHEAD TO ITEM NUMBER FIVE ON THE AGENDA AND THAT WILL BE PRESENTATION BY ATMOS ENERGY, UM, CHRIS PHELAN AND KELLY LER.ALRIGHT, GOOD EVENING COMMISSIONERS.
I'M KELLY BEAGLER, VICE PRESIDENT OF PUBLIC AFFAIRS AT ATMOS ENERGY.
AND WITH ME TODAY I HAVE CHRIS PHELAN AND SHELLY BASS FROM OUR RATES AND REGULATORY TEAM.
UM, WE APPRECIATE THE OPPORTUNITY, UM, TO COME BEFORE YOU AND TELL YOU A LITTLE BIT ABOUT ATMOS ENERGY, BUT ALSO ANSWER YOUR QUESTIONS.
SORRY, CAN Y'ALL HEAR ME BETTER NOW? I'LL GET A LITTLE CLOSER TO THE MIC.
UM, SO I'M GONNA START OUT WITH A LITTLE BIT OF AN OVERVIEW, HOPEFULLY ANSWER A FEW QUESTIONS YOU ALL HAD ABOUT ATMOS ENERGY IN OUR SYSTEM.
AND THEN CHRIS AND SHELLY, UM, WILL SHARE A LITTLE BIT MORE ON THE RATES AND REGULATORY SIDE.
SO IF WE GO TO THE FIRST SLIDE, PLEASE.
THIS IS A MAP THAT SHOWS, UM, THE AREA OF AUSTIN THAT WE SERVE.
SO ATMOS SERVES MULTIPLE RESIDENTIAL COMMUNITIES, COMMERCIAL BUSINESS DISTRICTS, AND INDUSTRIAL CUSTOMERS WITHIN AUSTIN CITY LIMITS.
AND THESE AREAS STRETCH FROM RESEARCH BOULEVARD TO STATE HIGHWAY ONE 30 AND FROM AVERY RANCH BOULEVARD TO HIGHWAY 71.
THIS SLIDE SHOWS THE MEMBER CITIES, UM, IN THE, AT MISS TEXAS MUNICIPALITIES
[00:40:01]
OR WHAT WE CALL THE ATM COALITION THAT YOU ALL ARE A PART OF.AND MR. HERRERA COVERED EARLIER.
SO SPECIFICALLY, UM, TO AUSTIN AND THE CITY LIMITS AND, AND WHAT WE SERVE, UM, THE, THE AUSTIN SYSTEM IS PART OF OUR ATMOS ENERGY MID TEXT DIVISION, BUT HERE IN AUSTIN WE HAVE JUST OVER 11,000 CUSTOMERS.
UM, WE HAVE 125 EMPLOYEES OUT OF OUR ROUND ROCK SERVICE CENTER THAT SERVE THIS AREA.
AND WE OPERATE, UM, 120 MILES OF PIPELINE WITHIN THE CITY OF AUSTIN.
AND FISCAL YEAR 24, UM, WE PROVIDED $226,000 IN CHARITABLE GIVING TO NONPROFITS WITHIN THE AUSTIN CITY LIMITS.
SO THIS SLIDE TALKS A LITTLE BIT ABOUT THE MID TEXT DIVISION OF WHICH AUSTIN IS A PART OF.
AND IF YOU LOOK AT THE MAP ON HERE, THE DARK SHADED GRAY AREA IS WHAT WE CALL OUR MID TEXT DIVISION.
UM, WITHIN THIS DIVISION WE SERVE 1.8 MILLION CUSTOMERS AND WE'RE RESPONSIBLE FOR SAFELY AND RELIABLY OPERATING MORE THAN 32,000 MILES OF PIPELINE.
UM, TO SERVE THIS AREA, WE HAVE JUST OVER 1900 EMPLOYEES AND SERVE JUST OVER 550 COMMUNITIES.
IN FISCAL YEAR 24, UM, WE INVESTED 1.4 BILLION IN CAPITAL INVESTMENT IN OUR SYSTEM AND WE ALSO DONATED 8.8 MILLION, UM, TO NONPROFIT PARTNERS IN OUR AREA.
SO, AT ATMOS ENERGY SAFETY DRIVES EVERYTHING THAT WE DO AND OUR VISION IS TO BE THE SAFEST PROVIDER OF NATURAL GAS SERVICES.
AND SO OVER THE LAST 10 YEARS, WE'VE INVESTED MORE THAN 10 BILLION TO MODERNIZE OUR PIPELINE INFRASTRUCTURE.
THIS SLIDE, UM, WE WANTED TO INCLUDE THIS JUST TO SHOW YOU, UM, A LITTLE BIT ABOUT OUR TRAINING AROUND SAFETY.
SO, UM, IF YOU'RE EVER UP IN THE DFW UM, METROPLEX AREA, WE INVITE YOU TO COME OUT TO OUR CHARLES KAYVON TRAINING CENTER.
UH, WE'D BE HAPPY TO TAKE YOU ON A TOUR, BUT THIS IS WHERE OUR EMPLOYEES, UM, RECEIVE A LOT OF THEIR TRAINING.
UM, AND THE PHOTO THAT YOU SEE HERE IS OUR GAS FLOW LAB.
UM, WE ALSO HAVE A SORT OF A CITY THAT'S BUILT OUT BEHIND, UM, THIS TRAINING CENTER WHERE THEY TRAIN ON.
BUT NOT ONLY THAT, WE BRING OUR FIRST RESPONDERS IN ALSO TO DO SPECIALIZED TRAINING.
SO IN FY 23, UM, OUR EMPLOYEES SPENT MORE THAN 9,000 HOURS ON SAFETY TRAINING.
SO WE ALWAYS TRY TO INCLUDE SOMETHING ON DAMAGE, PREVENT, UM, IN ALL OF OUR PRESENTATIONS TO GET THE SAFETY MESSAGE OUT THERE ABOUT CALLING 8 1 1.
BEFORE YOU DIG, WE WANTED Y'ALL TO MEET GUS THE GOPHER.
HE IS OUR SAFETY MASCOT AROUND SAFE DIGGING.
UM, WE ACTUALLY DO HAVE A GUS THE GOPHER COSTUME WE TAKE OUT INTO THE COMMUNITY AND TO SCHOOLS, UM, TO HELP EDUCATE FOLKS ON, UM, CALLING 8 1 1 TO HAVE UNDERGROUND UTILITIES LOCATED BEFORE DIGGING.
UM, THE MOST COMMON CAUSE OF OUTSIDE NATURAL GAS LEAKS IS EXCAVATION DAMAGES, UM, THAT DAMAGE THE NATURAL GAS PIPELINE.
IF YOU EVER HAVE ANY EVENTS, WE'D UM, LOVE TO BRING GUS OUT.
SO I'LL KIND OF WRAP UP MY PORTION BY TELLING YOU A LITTLE BIT ABOUT OUR FUELING SAFE AND THRIVING COMMUNITIES INITIATIVE.
SO THIS IS WHERE WE FOCUS OUR CHARITABLE GIVING.
UM, WE HAVE THREE PILLARS, UM, THAT WE FOCUS THIS ON.
AND OUR, UM, EMPLOYEES DON'T JUST WORK IN AUSTIN, THEY ALSO LIVE IN AUSTIN, AND IT'S BUILT INTO OUR CULTURE TO GIVE BACK.
SO, AND FY 23, OUR EMPLOYEES VOLUNTEERED MORE THAN 43,000 HOURS ACROSS OUR SYSTEM, UM, WITH NONPROFITS AND OTHER COMMUNITY ENDEAVORS.
WE FOCUS ON THREE PILLARS, UM, WITH THIS PROGRAM, AND THAT'S KIDS.
UM, SO WE FOCUS ON EARLY LITERACY AND CHILDHOOD HUNGER.
I FEEL LIKE WHEN YOU CAN ADDRESS THOSE THINGS, UM, GIVES THEM GREATER SUCCESS THROUGHOUT THEIR, UM, EDUCATION AND IT STRENGTHENS COMMUNITIES.
AND THEN WE ALSO FOCUS ON HEROES.
OBVIOUSLY WE WORK CLOSELY WITH FIRST RESPONDERS, UM, SO WE LIKE TO GIVE BACK TO THEM.
AND IF YOU'LL GO TO THE NEXT SLIDE, I'LL TALK A LITTLE BIT ABOUT SOME OF OUR NEIGHBORS OUTREACH.
UM, SO HELPING OUR COMMUNITIES STAY WARM DURING THE YEAR IS ONE OF OUR HIGHEST PRIORITIES.
UM, WE HAVE A VARIETY OF ENERGY ASSISTANCE PROGRAMS FOR OUR CUSTOMERS.
UM, WE HAVE A SHARING THE WARMTH PROGRAM AND IN 2024, UM, ATMOS ENERGY AND OUR CUSTOMERS PROVIDED APPROXIMATELY 4.4 MILLION TO HELP SUPPORT CUSTOMERS IN NEED.
AND THEN YOU ALL ARE PROBABLY AWARE OF THE FEDERAL LOW INCOME HOME ENERGY ASSISTANCE PROGRAM OR LIHEAP DOLLARS, UM, THAT FUND, UM, SEND FUNDS TO THE STATES, AND THEN TWO ENERGY ASSISTANCE AGENCIES.
SO WE WORK WITH TWO ENERGY ASSISTANCE AGENCIES IN TRAVIS COUNTY, AND THAT'S TRAVIS COUNTY HEALTH AND HUMAN SERVICES, AS WELL AS CATHOLIC CHARITIES OF CENTRAL TEXAS.
AND THEY'RE BOTH ENERGY ASSISTANCE AGENCIES THAT PROVIDE UTILITY BILL ASSISTANCE TO OUR
[00:45:01]
CUSTOMERS.UM, ONE WAY WE, UM, SORT OF IMPACT OUR CUSTOMERS IN THAT WAY IS WE HOLD ENERGY ASSISTANCE BLITZES, AND THAT'S AN OPPORTUNITY TO PROVIDE SOME IMMEDIATE ACCESS TO FUNDS TO OUR CUSTOMERS.
WE RECENTLY HAD ONE WITH CATHOLIC CHARITIES IN THE LAST MONTH, UM, HERE IN CENTRAL TEXAS.
WE BRING OUR STAFF DOWN, UM, WE PARTNER WITH THAT AGENCY STAFF, UM, AND ANYONE THAT WALKS THROUGH THE DOOR, WE HELP THEM WITH THEIR UTILITY BILL.
AND WITH THAT, I'M GONNA TURN IT OVER, UM, TO SHELLY BASS FOR THE NEXT SLIDE.
I'M ACTUALLY IN THE ATMOS ENERGY LEGAL DEPARTMENT, BUT I SUPPORT, UH, THE, ALL OF THE DIVISIONS IN REGULATORY MATTERS.
SO I SUPPORT RATES, UH, PIPELINE SAFETY, COMPLIANCE, AND, UM, INITIATIVES LIKE OUR ENERGY EFFICIENCY PROGRAMS. AND KELLY, SHE ANSWERED YOUR QUESTION ABOUT HOW WE SERVE AUSTIN GENERALLY, BUT YOU HAD SOME QUESTIONS ABOUT ENERGY EFFICIENCY AND SO I WANTED TO, UH, TAKE THIS OPPORTUNITY TO TALK TO YOU ABOUT THAT.
SO WHEN I TALK ABOUT THIS TOPIC, I LIKE TO PUT IT INTO CONTEXT OF THE ROLE THAT NATURAL GAS PLAYS IN THE ENERGY PORTFOLIO OF THE COMMUNITY.
AND SO THIS SLIDE IS SPECIFIC TO TEXAS AND YOU, YOU CAN SEE THAT THERE ARE 5.1 MILLION CUSTOMERS IN TEXAS THAT, UM, USE DIRECT USE NATURAL GAS SERVICE, AND THOSE CUSTOMERS SAVE ABOUT $331 A YEAR BASED ON, UM, THE CURRENT TEXAS NUMBERS.
UH, WERE AN ALL ELECTRIC HOME AND THEY ALSO PRODUCE 13% LESS CARBON EMISSIONS, UM, IN THE NATURAL GAS HOMES VERSUS AN ALL ELECTRIC HOME.
AND THERE'S SOME OTHER NUMBERS ON THERE ABOUT, UM, FINANCIAL ASSISTANCE PROVIDED.
UH, WE, WE'VE PROVIDED $10.4 MILLION IN FINANCIAL ASSISTANCE IN TEXAS, AND THAT HAS HELPED OVER 26,000 CUSTOMERS.
BUT, SO WITH THAT IN MIND, I CAN, UM, MOVE ON TO THE NEXT SLIDE.
ASTRAL GAS IS ALSO A PART OF THE PORTFOLIO THROUGH THE ELECTRIC GENERATION SYSTEM.
AND YOU KNOW, YOU MAY REMEMBER, FOR EXAMPLE, WINTER STORM, HEATHER, DOES ANYONE REMEMBER WINTER STORM? HEATHER? WE HAVE SO MANY WINTER STORMS, BUT THIS WAS JANUARY OF LAST YEAR AND WE HAD SOME RECORD BREAKING COLD EVEN COLDER THAN WINTER STORM URI.
AND DURING THAT TIME, UH, 63% OF THE ENERGY DELIVERED WAS BY GENERATED BY NATURAL GAS, EITHER ELECTRICITY OR, OR DIRECT USE, AND 71% AT THE PEAK OF THAT VERY EXTREME WINTER EVENT.
SO YOU CAN SEE THAT ESPECIALLY DURING TIMES WHEN, UM, WE HAVE PEAK NEEDS AND, UH, EMERGENCY SITUATIONS, NATURAL GAS PLAYS A BIG ROLE IN THAT.
AND SO OBVIOUSLY DIRECT USE NATURAL GAS, IT'S NOT, UM, IT DOESN'T WORK FOR ALL APPLICATIONS OF ENERGY, RIGHT? THERE'S SOME APPLICATIONS LIKE, UM, AIR CONDITIONING COOLING THAT THAT NATURAL GAS IS NOT WELL SUITED FOR, BUT IT IS WELL SUITED FOR SPACE HEATING AND WATER HEATING.
AND IF YOU LOOK AT THE EFFICIENCY OF USING DIRECT USE NATURAL GAS VERSUS CONVERTING IT TO, UH, ELECTRICITY, THIS, I LOVE THIS ILLUSTRATION BECAUSE IT SHOWS IT VERY WELL.
SO IF YOU START OUT WITH A HUNDRED M-M-B-T-U OF OF GAS, YOU ACTUALLY DELIVER 92% OF THAT TO THE CUSTOMER.
AND IF YOU START OUT WITH THAT SAME A HUNDRED M-M-B-T-U AND YOU CONVERT THAT NATURAL GAS TO ELECTRICITY, YOU ONLY DELIVER 38% OF THAT TO THE THE END USED CUSTOMER.
SO TO FURTHER ENHANCE THE EFFICIENCY OF NATURAL GAS FOR OUR CUSTOMERS, WE HAVE WHAT WE CALL THE SMART CHOICE PROGRAMS IN IN MANY OF OUR STATES.
AND IN FOR MID TECH, WE HAVE THIS SMART CHOICE REBATE PROGRAM.
THIS IS JUST A CLIP FROM THE WEBSITE WHERE CUSTOMERS CAN GO TO GET ACCESS TO THE, UM, OPPORTUNITIES TO SAVE THROUGH THESE PROGRAMS. AND WE HAVE APPLIANCE REBATES AND WE ALSO HAVE FREE ENERGY KITS, AND WE HAVE SOMETHING CALLED KEEPING THE WARM THAT I WILL TELL YOU ABOUT THAT THAT, UM, HELPS OUR LOW INCOME CUSTOMERS.
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NEXT SLIDE PLEASE.SO HERE ARE THE REBATES THAT WE OFFER, UM, THAT A CUSTOMER CAN APPLY FOR ON OUR WEBSITE.
AND YOU KNOW, IT, YOU SEE ALL OF THE BASIC, UM, APPLICATIONS OF NATURAL GAS THERE, FURNACES, UM, WATER HEATERS, CLOTHES DRYERS, AND THEN ALSO SMART THERMOSTATS THAT ASSIST WITH, UM, SAVING ENERGY IN BOTH IN THE HVAC SYSTEM, UM, BOTH COOLING AND HEATING.
SO, AND THEN IN ADDITION TO THAT, WE HAVE OUR FREE ENERGY KITS THAT WILL PROVIDE, YOU KNOW, THERE'S, THERE'S TWO WAYS TO, TO BE MORE EFFICIENT.
THERE'S CONSERVATION THROUGH, UM, UH, IMPROVING THE ENVELOPE OF THE SPACE, WHICH HELPS WITH ALL ENERGY APPLICATIONS, RIGHT? SO, SO THOSE FREE ENERGY KITS WILL HELP WITH CAULKING, UM, AND OTHER, OTHER WAYS THAT THEY, THAT A CUSTOMER CAN KEEP ENERGY FROM ESCAPING THE HOME, WHETHER IT'S THROUGH COOLING OR HEATING.
AND THEY ALSO FI, UH, PROVIDE, UH, AERATORS THAT DECREASE WATER USE, MAKE WATER USE MORE EFFICIENT, WHICH IN TURN DECREASES THE USE OF NATURAL GAS BECAUSE YOU DON'T HAVE TO HEAT AS MUCH WATER.
AND WE ALSO PROVIDE SOME THINGS LIKE LED LIGHT BULBS AND OTHER, UM, EASY QUICK WAYS FOR CUSTOMERS TO SAVE ENERGY.
ALRIGHT, UM, YOU CAN GO TO THE NEXT SLIDE, PLEASE.
ALL RIGHT, THIS IS OUR ABOUT OUR KEEPING THE WARMTH PROGRAM.
UH, THIS IS FROM OUR MOST RECENT ANNUAL REPORT ON OUR SMART, UH, CHOICE PROGRAMS IN, IN MID TECHS.
BUT YOU CAN SEE THERE THAT, UM, WE PARTNER WITH LOCAL COMMUNITIES, WEATHERIZATION ORGANIZATIONS AND COMMUNITY ACTION PARTNER AGENCIES TO GAIN ACCESS, HELPING TO DECREASE HOUSEHOLD ENERGY USE TO QUALIFYING LOW INCOME CUSTOMERS.
WE INSTALL, UH, WEATHERIZATION AND CONSERVATION, UM, MEASURES TO, UH, LIKE I SAID BEFORE, BUT IT'S MORE EXTENSIVE TO, UM, IMPROVE THEIR, UH, THEIR ENVELOPE OF THEIR STRUCTURE.
AND THEN WE, WE PROVIDE THEM WITH, UH, VARIOUS OTHER ENERGY EFFICIENCY MEASURES SO THAT WE CAN MAKE A MEANINGFUL DIFFERENCE IN THE ENERGY CONSUMPTION OF THAT HOME.
UM, SO THAT IS WHAT OUR KEEPING THE WARRANT LOOKS LIKE.
UH, IF YOU GO TO THE NEXT SLIDE, YOU CAN SEE SOME NUMBERS.
UH, YOU SEE SOME NUMBERS ON FOR THE MOST RECENT PROGRAM YEAR, WHICH ENDED OF JUNE 30TH OF LAST YEAR, UH, YOU CAN SEE OUR BUDGET THERE.
AND COMPARED TO ACTUALS, WE, WE USUALLY ARE ABLE TO, TO USE, UH, ALMOST ALL OF THE BUDGET BECAUSE OUR CUSTOMERS ARE INTERESTED IN THESE PROGRAMS. AND YOU CAN SEE THE DECK OF THERMAL SAVED, THAT'S THE VOLUME OF GAS SAVED.
AND THEN YOU CAN SEE THE, THE TONS OF CARBON REDUCTION, CARBON EMISSION REDUCTIONS WITH, FOR THIS PROGRAM YEAR WAS, UH, 2,220 TONS OF CARBON, UM, THAT WERE AVOIDED BY THESE PROGRAMS. ALL RIGHT, I'LL TURN IT OVER TO CHRIS.
THANK YOU, UH, SHELLY AND KELLY FOR, UH, THE UPDATE SO FAR.
UM, I'LL ATTEMPT TO GO THROUGH SOME OF THE OTHER QUESTIONS THAT YOU HAD DURING, UM, DURING THE EMAIL, I GUESS THAT YOU GUYS HAD SENT US JUST TO COVER SOME OF THE ITEMS THAT YOU WERE LOOKING FOR.
SO CAPITAL EXPENDITURES IN THE MID TEXT DIVISION.
I WANT FIRST LIKE TO POINT OUT, THESE ARE SYSTEM WIDE NUMBERS.
THIS IS WHAT OUR TOTAL DIVISION, UM, THE, THE 37,000 MILES OF PIPELINE, THE, THE 1.8 MILLION CUSTOMERS.
ALL OF THIS INVESTMENT IS RELATED TO THE, THE TOTAL SYSTEM.
THIS INVESTMENT INCLUDES, UM, INVESTMENTS REPLACE HIGH RELATIVE RISK PIPELINE FACILITIES AND TO COMPLY WITH THE REGULATORY REQUIREMENTS ESTABLISHED AT THE FEDERAL, STATE, AND LOCAL LEVELS IN SUPPORT.
TO NOTE THAT THE MAJORITY OF THE SPEND, ABOUT 85% OR SO IS RELATED TO SAFETY AND RELIABILITY.
THAT CATEGORY CONTAINS CAPITAL PROJECTS SUCH AS REPLACEMENT ACTIVITY FOR DISTRIBUTION FACILITIES THAT ARE REACHING THE END OF THEIR USEFUL LIFE, AS WELL AS VERY IMPORTANT FORTIFICATION PROJECTS TO ENHANCE SYSTEM RELIABILITY.
YOU HEARD KELLY TALK ABOUT THIRD PARTY DAMAGE, BUT RELOCATIONS ARE ALSO KEY TO ENHANCE SAFETY AND RELIABILITY.
RELIABILITY BY ALLOWING MID TECH TO AVOID CONFLICTS WITH CITY INFRASTRUCTURE, WHICH IN WHICH IN TURN REDUCE THIRD PARTY DAMAGES.
UH, THERE'S ALSO GENERAL PLANT, UM, ADJUST, UH, EXPENDING THAT AUGMENT SAFETY AND RELIABILITY.
FOR EXAMPLE, INVESTMENTS IN INNOVATIVE LEAK DETECTION TOOLS ALLOW US TO USE STATE OF THE TAR, STATE OF THE ART TECHNOLOGY TO SUPPLEMENT TRADITIONAL TECHNOLOGIES TO IDENTIFY AND LOCATE GAS
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LEAKS.SO THAT INVESTMENT FROM THE PREVIOUS SLIDE, UH, YOU CAN SEE THE CHANGE IN NET PLANT AND RATE BASE FROM 2020 OVER THAT SAME 2024 PERIOD.
UM, NET PLANT IS THE BLUE SHADED BAR.
AND SO THE NET PLANT HAS GONE FROM 5.3 BILLION TO 9.3 BILLION, AND OUR RATE BASE HAS GROWN FROM 4.3 BILLION TO 8.3 BILLION.
AND THIS, THIS IS ILLUSTRATES THE COMMITMENT THAT WE HAVE IN, IN, IN INVESTING IN OUR SYSTEM AND INVESTING IN THE SAFETY AND RELIABILITY OF OUR SYSTEM WITH THAT, THAT GROWTH OVER THAT PERIOD OF TIME.
SO, UH, YOU HEARD MR. HERRERA TALK ABOUT THE IMPACTS TO THIS MOST RECENT, UH, UH, RATE CASE.
UH, THIS, WHAT THIS GRAPH ILLUSTRATES IS THE AUSTIN, OUR AUSTIN INTER AUSTIN CUSTOMERS AVERAGE USAGE.
SO, UH, FREDDY MENTIONED, MR. HERRA MENTIONED THAT THERE, THE AVERAGE USAGE FOR OUR SYSTEM WISE ABOUT 33 CCF AUSTIN ACTUALLY USES A LITTLE BIT LESS THAN THAT ON AVERAGE FOR THE YEAR.
YOU'LL SEE ON, ON ANOTHER SLIDE, YOU'LL SEE THE BREAKDOWN OVER THE YEARS, BUT IT USUALLY RANGE RANGES FROM 27 TO 24 CCF.
UM, IT'S IMPORTANT TO NOTE THE THREE COMPONENTS THAT ARE, THAT MAKE UP THIS BAR CHART.
YOU HAVE THE CUSTOMER CHARGE, UH, THE VOLUMETRIC CHARGE OR CONSUMPTION CHARGE, AND OF COURSE THE COST OF GAS.
SO THE THREE COMPONENTS THAT MAKE UP THE BILL, THERE'S ALSO, THERE WOULD INCLUDE TAXES THAT'S NOT SHOWN ON THIS, ON THIS CHART, BUT JUST THOSE THREE PIECES AND YOU CAN SEE AS FREDDY, UH, IDENTIFIED, I'M SORRY, MR. RERA, I KEEP SAYING YOU.
MS. HERRERA MENTIONED THAT THE, IN, IN THE, THE GRIP STATUTE, WHEN WE FILE ANNUAL GRIP FILINGS, UH, THE STATUTE ALLOWS EITHER THE CUSTOMER CHARGE THAT WE COULD PUT THE INCREASE OR THE ADJUSTMENT EITHER IN THE CUSTOMER CHARGE OR THE VOLUMETRIC CHARGE OVER THE LAST FIVE PERIOD.
AS YOU CAN SEE, WE CH WE, UH, UH, ADD THAT TO THE, THE CUSTOMER CHARGE EACH YEAR.
AND YOU CAN SEE THE GROWTH OVER THAT FIVE YEAR PERIOD.
BUT THEN THROUGH THIS MOST RECENT STATEMENT OF INTENT, THE NEGOTIATE, THE, THE NEGOTIATED, UH, SETTLEMENT THAT WE HAD WITH THE, WITH MR RERA AND THE AT TM CITIES, YOU CAN SEE THAT THE CUSTOMER CHARGE DROPPED TO 25.
BUT AS HE USED THE, I THINK THE WATER BED ANALOGY, I USED A BALLOON ANALOGY, YOU SQUEEZE ONE SIDE OF THE BALLOON, THE OTHER ONE POPS UP.
SO IF YOU GO, IF YOU LOWER VOLUME CUSTOMER CHARGE, THE OTHER PIECE HAS TO BE VOLUMETRIC.
SO IT, IT'S, IT'S IMPORTANT TO NOTE THAT THAT RESIDENTIAL CUSTOMERS DO SEE A DECREASE, UM, IN THIS MOST RECENT SETTLEMENT IN THEIR BILL.
AND IF YOU REMEMBER THE CHART THAT THAT FREDDY, MR. RIVERA SHOWED LINE FOUR, I THINK YOU POINTED OUT MR. ROBINS ABOUT THE, THE IMPACTS.
SO IT'S RIGHT, MAYBE LINES THREE AND FOUR.
SO THE WINTER USAGE IS ABOUT MAYBE 38 CCF 40 CCF, AND THE SUMMER USAGE IS ABOUT 11 CCF.
SO THAT AVERAGE IS ABOUT TO 2024.
UH, COMMERCIAL CUSTOMERS, AS, AS WE TALKED ABOUT, HE HAD A SLIDE AS WELL THAT SHOWED THIS, THE IMPACTS AS, AS WE, UH, NEGOTIATED THE RATE DESIGN PORTION OF THE, OF THE, OF THE RATE CASE OR THE STATEMENT OF INTENT, RESIDENTIAL CUSTOMERS SAW A DECREASE IN THE BILL.
UH, UH, COMMERCIAL CUSTOMERS SAW THE INCREASE.
MR. RERA TALKED ABOUT THOSE INCREASES FOR BOTH THE COMMERCIAL AND THE IT CUSTOMERS.
I SORT OF MENTIONED THAT THE AVERAGE CONSUMP CONSUMPTION OVER THE YEAR, YOU CAN SEE, OR OVER THE YEARS, EXCUSE ME, YOU CAN SEE FOR RESIDENTIAL FROM 2020 IT WAS 27 AND IT FLUCTUATES.
UH, THIS MOST RECENT, UM, 2024 PERIOD WAS ABOUT A 24, UM, UM, AVERAGE CCF AVERAGE.
AND THEN I JUST ADDED 25 USING THE SETTLED RATES JUST TO SHOW WHAT THE IMPACT IS TO THE OVERALL BILL.
THE AVERAGE RESIDE RESIDENTIAL BILL WENT FROM 72 68 ROUGHLY TO 64 86.
THAT'S INCLUSIVE OF GAS COST, WHICH IS AS MR. RERA POINTED OUT AS A PASS THROUGH COST.
SO I JUST WANNA GIVE YOU SORT OF A, AN O OVERVIEW OF JUST THE, THE MID TEXT DIVISION ITSELF AND HOW IT COMPARES HOW AUSTIN COMPARES TO THE ATM COALITION, WHICH REPRESENTS ABOUT 46 OR CITIES, UH, IN OUR, IN OUR FOOTPRINT.
AND THEN OUR OVERALL, UM, TOTAL.
SO WE AUSTIN'S EXPERIENCED ABOUT NINE TO 10% GROWTH FROM 2020 TO 2024 IN OUR SYSTEM, UH, SLIGHTLY OVER 10,000 TO ALMOST A LITTLE ABOVE 11,000 CUSTOMERS.
UH, THE ATM COALITION HAS ALSO SHOWN SOME GROWTH AS WELL ABOUT ROUGHLY SIX TO 7%.
AND THEN OUR OVERALL SYSTEM HAS GROWN FROM, UH, 1.7 MILLION CUSTOMERS BACK FROM 20 TO 1.8 MILLION.
SO WE'RE SEEING SIGNIFICANT GROWTH IN OUR, IN OUR SERVICE TER TERRITORY.
SO LINE EXTENSION AND CONSTRUCTION CHARGES.
[01:00:01]
QUALITY OF SERVICE RULES THAT WE HAVE IN PLACE THAT SORT OF, THAT OUTLINE WHAT WE CAN AND CANNOT DO FOR LINE EXTENSION.I'LL POINT OUT THAT THIS LINE EXTENSION POLICY IS, IS REALLY GEARED TOWARDS ONE OR THE ONE COMMERCIAL, ONE RESIDENTIAL CUSTOMER.
IT, YOU'LL SEE ON THE NEXT SLIDE WHERE IT TALKS ABOUT THE 75 FEET AND THE, THE, THE AMOUNT OF, OF FOOTAGE THAT WE'RE ALLOWED TO, TO WORK WITH.
ANYTHING ABOVE AND BEYOND THAT, THERE'S A SPECIAL AGREEMENT THAT IS ENTERED INTO, UH, WHERE THE CUSTOMERS HAVE TO PAY FOR ANYTHING IN EXCESS OF THAT.
AND THEN OF COURSE OUR INDUSTRIAL CUSTOMERS ARE ON, THEY PAY FOR ALL OF ALL THAT INFRASTRUCTURE.
SO, AS I MENTIONED ABOUT GROWTH, OUR SERVICE TER TERRITORY CONTINUES TO EXPERIENCE ONE OF THE HIGHEST RATES OF POPULATION GROWTH AND ECONOMIC DEVELOPMENT IN THE COUNTRY.
UH, A A NEW ADDITION RESULTS FROM GROWTH AND REQUIRES MID TEXT TO INSTALL NEW PIPE IN THE GROUND.
SO OUR, WE HAVE GROWTH DOLLARS THAT, THAT WERE IN THAT, IF YOU REMEMBER THAT CAPITAL SLIDE, THERE IS SOME GROWTH DOLLARS IN THERE.
UM, SO A NEW ADDITION RESULTS FROM THAT GROWTH REQUIRES MID TEXT TO INSTALL PIPE IN THE GROUND.
SO TO SAFELY AND RELIABLY MEET THE NEEDS OF THESE NEW CUSTOMERS AND SUPPORT THE ECONOMIC GROWTH OF THE COMMUNITIES WE SERVE, WE HAVE MADE SIGNIFICANT INVESTMENTS IN THE SYSTEM TO RESPOND TO THIS NEW DEMAND.
SO THIS EFFORT REQUIRES THE INSTALLATION OF THESE NEW FACILITIES AND SIGNIFICANT COMPANY RESOURCES TO ASSURE THE FACILITIES WERE PROPERLY ENGINEERED, INSTALLED, PLACED IN SERVICE, MARKED AND MAPPED AS REQUIRED BY APPLICABLE STATE AND FEDERAL PIPELINE SAFETY REGULATIONS.
SO WE ALL, UH, REMEMBER AND EXPERIENCED WINTER STORM MURIE IN 2021.
AND I THINK WE'RE ALL FAMILIAR WITH WHAT THE LEGISLATURE HAD HAD DONE IN, IN TO TOOK TAKE CARE OF THE EXTRAORDINARY GAS COSTS DURING THAT PERIOD OF TIME.
IT WAS HOUSE BILL 1520, UH, THE LEGISLATURE PASSED THAT BILL, THE RAILROAD COMMISSION REVIEWED THOSE COSTS.
THERE WAS DOCKETS THAT WE HAD TO, WE HAD TO FILE.
THERE WAS A DOCKET THAT WAS CREATED.
UH, SEVERAL, UH, UTILITIES PARTICIPATED.
I THINK THERE WAS MAYBE EIGHT OR NINE PARTICIPATING UTILITIES IN THAT DOCKET TO COVER THESE EXTRAORDINARY GAS COSTS.
AND, AND IF WE, IF THIS DIDN'T HAPPEN, THE ONLY MECHANISM THAT YOU HAD IN PLACE TO RECOVER THAT IS, IS OUR, IS OUR STANDARD GAS COST RECOVERY, WHICH IS A 12 MONTH PERIOD.
SO IT WOULD'VE, IT WOULD'VE RESULTED IN AN EXTREME HARDSHIP FOR ALL OF OUR CUSTOMERS IF IT HAD TO COVER THE EXPENDITURES DURING THAT WINTER STORM.
UM, SO, SO THAT, THAT'S REALLY WHAT, WHAT HAPPENED IN, UH, FOR THE, FOR THE COST RECOVER WINTER STORM YEAR.
YOU'LL SEE ON THE NEXT SLIDE WHERE WE HAVE, THIS IS OUR TARIFF THAT WE HAVE ON OUR WEBSITE.
IT'S THE, UH, IT'S CALLED THE CRR TARIFF CUSTOMER RATE RELIEF.
IF YOU GO NEXT SLIDE PLEASE, SORRY.
AND THIS IS A RATE YOU'LL SEE THAT'S THE 11.18 CENTS PER CCF AND THAT'S A UNIFORM RATE THAT ALL THE UTILITIES THAT PARTICIPATED IN THE, IN THIS SECURITIZATION DOCKET, IF YOU WILL.
UH, THAT'S WHAT THEY'RE CHARGING.
UM, THAT'S WHAT WE CHARGE OUR CUSTOMERS.
IT'S EMBEDDED WITHIN THE GAS COST RECOVERY RATE.
SO WE HAVE THE, THE GCR GAS COST RECOVERY THAT YOU SAW IN THE PREVIOUS SLIDE.
THAT'S ONE OF THE COMPONENTS OF THE BILL.
THIS ROUGHLY 12 CENTS IS INCLUDED IN THAT NUMBER.
AND WITH THAT, I THINK THAT MAY BE THE LAST SLIDE.
WE'LL ANSWER ANY QUESTIONS YOU MAY HAVE FOR US.
THANK YOU SO MUCH FOR THE PRESENTATION, ALL OF YOU.
APPRECIATE YOU COMING AND SHARING THAT WITH US.
UH, I'LL OPEN THE FLOOR TO COMMISSIONERS FOR QUESTIONS.
UM, IS THERE ANY QUESTION FROM THE VIRTUAL ATTENDEES? I WANNA MAKE SURE I'M NOT OKAY.
I, AS IT HAPPENS, I HAVE A QUESTION FOR EACH OF YOU.
UM, THE CURRENT FEDERAL ADMINISTRATION APPEARS TO BE INTENT ON GUTTING LIHEAP AS WELL AS OTHER HOUSING PROGRAMS THAT PROVIDE, UM, AND, AND THE DEPARTMENT OF ENERGY AND EPA THAT PROVIDE THINGS LIKE ENERGY EFFICIENCY AND SERVICES AND CONSERVATION SERVICES.
WHAT IT WOULD THE LOSS OF LIHEAP AND THE GUTTING OF COMMUNITY ACTION AGENCY FUNDING DO TO YOUR A, YOUR REVENUES, UM, AND, AND SORT OF UNCOLLECTIBLE AND BE TO YOUR ABILITY TO PROVIDE CONSERVATION AND ENERGY EFFICIENCY SERVICES TO ALL OF YOUR CUSTOMERS.
WE ARE VERY ACTIVE AT THE FEDERAL LEVEL, UM, ON SUPPORTING THE CONTINUATION OF LIHEAP.
AND WE THINK IT'S VERY IMPORTANT TO OUR CUSTOMERS AND WE WILL BE ACTIVE IN FINDING OTHERS FUNDING RESOURCES IF, IF THOSE FUNDS WERE TO DIMINISH.
AND YOU KNOW, I, I DON'T HAVE A CALCULATION OF HOW IT MAY AFFECT OUR UNCOLLECTIBLE, BUT, UM, THAT'S NOT OUR PRIMARY CONCERN.
OUR PRIMARY CONCERN IS, IS TO MAKE SURE THAT OUR CUSTOMERS WHO NEED ASSISTANCE GET THAT ASSISTANCE.
WE ALSO HAVE, UM, OTHER LIHEAP IS NOT OUR ONLY ACCESS TO
[01:05:01]
FUNDING.WE HAVE OTHER FUNDING, INCLUDING OUR OWN SHARE, SHARE THE WARMTH, UH, PROGRAM WHERE OUR OWN EMPLOYEES AND CUSTOMERS CONTRIBUTE TO FUNDING TO, TO PROVIDE TO CUSTOMERS.
AND THAT CERTAINLY WILL NOT GO AWAY.
SO, UM, WE ARE, WE ARE HOPING THAT WE DON'T HAVE TO FACE THAT.
UH, BUT IF WE DO, WE ARE VERY ACTIVE IN OTHER ARENAS TO, TO ACQUIRE ACCESS TO ADDITIONAL FUNDING AND, UM, AND, AND OF COURSE CONTRIBUTE THAT OURSELVES AS ATMOS.
UM, SO BASED ON THE NUMBERS THAT YOU PROVIDED IN, IN, UH, SEVERAL OF THESE SLIDES, Y'ALL'S, UM, MID TEXAS CAPITAL EXPENSE WENT UP 86%.
CAPITAL EXPENDITURES, EXCUSE ME, WENT UP 86%, 2024, OVER 2020, 80% INCREASE IN NET PLANT AND SERVICE OVER THE SAME PERIOD, AND 87% INCREASE IN RATE-BASED 2024 OVER 2020.
BESIDES THE GROWTH IN POPULATION IN YOUR SERVICE AREA, WHAT OTHER FACTORS HAVE CONTRIBUTED TO THOSE SIZABLE INCREASES, PLEASE? THE MAIN FACTOR THAT INFLUENCES OUR CAPITAL INVESTMENT, WHICH IN TURN INFLUENCES THE, THOSE NUMBERS THAT YOU QUOTED, UH, IS THE DISTRIBUTION FACILITY REPLACEMENT PROGRAM THAT IS REQUIRED UNDER TEXAS LAW.
IT, IT IS IN A CHAPTER EIGHT OF THE PIPELINE SAFETY, UM, CODE OF THE RAILROAD COMMISSION.
AND IT REQUIRES A RISK-BASED APPROACH TO, UM, ANALYZING THE HIGHEST RELATIVE RISK ON THE SYSTEM AND REPLACING THAT PIPE TO ADDRESS THAT RISK IN A, IN A, UM, IN A MANNER THAT WILL MAXIMIZE, UM, THE REDUCTION OF, UM, RISK IN THE, AND THE BETTERMENT OF SAFETY OF THE SYSTEM.
AND SO BECAUSE OF THE SYSTEM THAT ATMO ENERGY ACQUIRED AND THE THE VINTAGE MATERIALS THAT WERE A PART OF THAT SYSTEM, UM, IT HAS REQUIRED SIGNIFICANT INVESTMENT AND WILL CONTINUE TO REQUIRE, UM, INVESTMENT TO MEET THOSE, UM, REQUIREMENTS BY THE STATE TO REPLACE, UM, HIGHER RELATIVE RISK MATERIALS.
SO WHAT OTHER FACTORS BESIDES THE AGE OF EXISTING PIPE, BESIDES THE CAN CONTRIBUTE TO RISK? UM, WELL, THERE'S MULTIPLE FACTORS THAT AFFECT THE LIKELIHOOD OF FAILURE, AND THOSE CAN BE MATERIAL TYPES.
WHEN, WHEN THE MATERIALS WERE DEVELOPED FOR NATURAL, LIKE A NATURAL GAS INDUSTRY, YOU KNOW, THEY WEREN'T, THERE WAS NO TESTING THAT THAT WENT INTO THAT.
AND SO THERE WAS NOT AN AWARENESS OF, UM, HOW AND WHEN THEY COULD FAIL.
SO THERE'S A NUMBER OF, IN PARTICULAR BEAR STEEL, BEAR STEEL CAN CORRODE AND, UM, IT IS BEEN A, A CAUSE OF MULTIPLE ACCIDENTS IN THE INDUSTRY.
AND SO THAT MATERIAL TYPE, REGARDLESS OF VINTAGE CAN, UM, IMPACT SAFETY AND NEEDS TO BE REPLACED.
UH, THERE CAN BE, UM, VINTAGE PLASTICS I'LL DELAY IS ONE OF THE, THE VINTAGE PLASTICS THAT DOESN'T LEAK, BUT WHEN IT IS PRONE TO BRITTLE CRACKING AND AND FAILURE, SO IT WILL JUST CATASTROPHICALLY FAIL WITHOUT PRIOR NOTICE.
SO THAT IS ANOTHER, UM, FACTOR.
AND THEN YOU HAVE, UM, LEGACY JOINING METHODS.
UH, THEY WERE, YOU KNOW, NOW WE FUSE ALL PIPE, BUT IT, THERE USED TO BE MECHANICAL FITTINGS, AND THIS HAS BEEN A, A, A BIG PROBLEM IN TEXAS THAT THEY WERE INSTALLED WITH MECHANICAL FITTINGS THAT OVER TIME CAN SLIP OUT OF, UH, THE SERVICE LINE CAN SLIP OUT OF THE MAIN, AND ESPECIALLY IF THERE IS OUTSIDE FORCE DAMAGE, ANOTHER UTILITY THAT IS PRESSING ON THAT PIPE OR, UM, EARTH MOVEMENT AND THINGS LIKE THAT.
SO THAT'S BEEN IDENTIFIED OVER THE YEARS BY FEMSA AND, AND THEY'VE ISSUED ADVISORY BULLETINS.
AND SO WE HAVE A CALCULATION THAT HAS THE LIKELIHOOD OF FAILURE AND THE CONSEQUENCE OF FAILURE.
SO THERE'S ALSO, ON THE CONSEQUENCE SIDE, IT CAN BE THE DENSITY OF THE POPULATION, PROXIMITY TO SCHOOLS AND HOSPITALS, THINGS LIKE THAT.
SO THERE'S A, A BIG CALCULATION, A MODEL THAT'S DONE THAT PRIORITIZES THE NEED FOR REPLACEMENT BASED ON A, THOSE VARIETY OF RISKS.
THANK YOU FOR THAT TERRIFICALLY MEATY ANSWER.
ONE LAST QUESTION THEN I'LL HASH UP.
DO, UM, HAS YOUR SYSTEM OR OTHERS EXPERIENCED ANY PROBLEMS FROM THE INCREASING LEVEL OF DROUGHT ON, ON TEXAS CLAY SOILS AND THE, AND THE POSSIBILITY OF, OF EARTH MOVEMENT? SO WE, WE ACTUALLY HAVE BUILT INTO THE MODEL, UM, THE RISK MODEL THAT I WAS TALKING ABOUT, AN EARTH FACTOR, UM, UM, CALCULATION SO THAT WE CAN TELL, UH, WE KNOW WE'VE
[01:10:01]
GOT SOME GEOLOGICAL INFORMATION IN THERE SO WE KNOW ABOUT THE SOILS ACROSS TEXAS AND WE CAN TRY AND FACTOR IN WHERE IT IS MOST LIKELY TO, TO IMPACT THE, UM, INTEGRITY OF OUR PIPES.AND SO THAT DOES GO INTO THE EQUATION.
OTHER QUESTIONS FROM COMMISSIONERS? COMMISSIONER LUKI? YEAH, I'M A LITTLE CURIOUS ABOUT THE, UM, CHARITABLE GIVING IN THE AUSTIN SERVICE TERRITORY WHERE, WHO GOT $226,000, WHERE DID THAT GO? SO I DON'T HAVE THAT INFORMATION BROKEN OUT TONIGHT, BUT I'D BE HAPPY TO PROVIDE THAT TO Y'ALL.
SO, UM, LETICIA ASSIGNS IS HERE, SHE'S OUR MANAGER OF PUBLIC AFFAIRS, AND, UM, SHE REPRESENTS US WITH PARTNERING WITH DIFFERENT CHARITABLE ORGANIZATIONS.
UM, YOU HAVE TO COME UP HERE, I DON'T HAVE THE, UM, EXACT NUMBERS.
YEAH, JUST, JUST, UH, OVERVIEW, JUST SURE.
AS KELLY MENTIONED, LETICIA SIGNS MANAGER OF PUBLIC AFFAIRS THAT COVERS THE AUSTIN AREA CATHOLIC CHARITIES AND THE CENTRAL TEXAS FOOD BANK AS WELL AS BOOK SPRINGING ARE THE MAIN, UM, ORGANIZATIONS THAT WE'VE GIVEN FUNDS TO AND WE'VE GIVEN THEM OVER THE PAST FOUR YEARS THAT I'VE BEEN IN THIS AREA, AND WE'RE ALWAYS LOOKING TO EXPAND THAT AS OUR BUDGET PERMITS.
SO THIS, THIS AMOUNT REPRESENTS FOUR YEARS THAT'S ON THIS OR JUST THE LAST YEAR? NO, SIR, THAT'S JUST LAST YEAR.
UM, TO SEND, UH, CATHOLIC CHARITIES RECEIVED ABOUT $150,000, UH, FOR PEOPLE THAT NEED HELP WITH FOOD IN THE AREA.
UM, AND THEN, UH, BOOK SPRINGS BEEN RECEIVING ABOUT 5,000 EACH YEAR.
UM, AND THEN, UM, THE CENTRAL TEXAS FOOD BANK, WE GAVE 50,000 THIS PAST YEAR, SO IT'S PRETTY SIGNIFICANT.
AS KELLY MENTIONED, WE FOCUS OUR EFFORTS ON LITERACY, UH, FOOD NEEDS AND OUR HEROES.
UH, I DO HAVE A COUPLE QUESTIONS AS WELL.
UM, REGARDING THE RESIDENTIAL AVERAGE CONSUMPTION, I'M LOOKING AT THE CHART FROM 2020 TO 2025, AND IT LOOKS LIKE THE, THE PER CAPITA CONSUMPTION ON THE RESIDENTIAL SIDE, UH, SHOWS AN INCREASE UP TO 2022 AND THEN BEGINS TO DECLINE AFTER THAT.
CAN YOU TALK ABOUT WHY, AND IT DOESN'T LOOK LIKE THAT'S HAPPENING TO SUCH AN EXTENT, AND ON THE COMMERCIAL SIDE, WHAT'S DRIVING THE AVERAGE CONSUMPTION DECLINE ON THE RESIDENTIAL SIDE? SO YOU COULD HAVE VARIOUS NUMBER OF FACTORS THAT THAT COULD IMPACT JUST THAT USAGE.
LEMME FIND THAT CHART REAL QUICK.
SO YOU CAN HAVE, YOU CAN SEE WHERE IT JUST FLUCTUATES THROUGHOUT THE FIVE YEAR PERIOD FROM 27 DOWN TO 24.
YOU CAN HAVE VARIOUS DIFFERENT VARIOUS THINGS THAT ARE IMPACTING THAT.
IT CAN HAVE HIGH, BETTER HIGHER EFFICIENCY APPLIANCES.
IT COULD HAVE BEEN, THESE ARE ACTUAL NUMBERS, SO THEY'RE NOT NORMALIZED FOR WEATHER.
IT COULD HAVE BEEN A LOWER, THE, THE, THE WINTER USAGE COULD HAVE BEEN LESS THAT THAT YEAR.
SO THAT MAY, THAT MAY HAVE BEEN, COULD HAVE BEEN A WARMER WINTER, WHICH WOULD'VE DRIVEN DOWN THAT AVERAGE USAGE.
SO THERE'S A NUMBER OF FACTORS THAT DRIVE THAT, THAT AVERAGE, UH, EACH YEAR.
AND IF WE WERE TO LOOK AT A LONGER TREND LINE, DO YOU SEE THAT THAT USAGE DECLINING OVER TIME OR HAS IT BEEN PRETTY FLAT OR WHAT'S THE IT'S, IT'S BEEN FAIRLY FLAT.
YOU COULD SEE THE LAST COUPLE YEARS, YOU KNOW, 22 SPIKED TO ALMOST 30 CF RESIDENTIAL THAN YOU SAW 23 AND 24 ABOUT SORT OF LEVEL OFF, IF YOU WILL, AT THE 24 LEVEL.
UH, OVER A LONGER TIMEFRAME, LIKE YOU GO BACK TO THE SEVENTIES MM-HMM
YOU'RE GONNA SEE IT THE DECLINING BECAUSE ALL OF THE APPLIANCE HAVE BECOME MUCH MORE EFFICIENT.
EFFICIENT AND ALSO THE, THE BUILDING ENVELOPES HAVE BECOME MORE, UM, INTACT.
UM, AND THEN REGARDING THE GRIP FILINGS THAT HAPPEN EVERY YEAR, UM, CAN YOU TALK A LITTLE BIT ABOUT, UH, HOW THAT'S RECOVERED? THAT DOESN'T NEED TO GO THROUGH A FULL RATE CASE, UM, BUT I THINK YOU MAY HAVE MENTIONED THAT IT COULD BE ASSESSED EITHER IN THE CUSTOMER CHARGE OR IN THE, IN THE COST OF, UM, THE USAGE CHARGE.
UM, HOW DO YOU SEE THAT GOING FORWARD GIVEN THAT YOU'VE JUST DONE A SETTLEMENT WHERE THERE'S MUCH MORE EMPHASIS ON THE USAGE AS OPPOSED TO THE CUSTOMER CHARGE? YEAH, SO, SO YOU'RE EXACTLY, YOU DESCRIBED IT CORRECTLY.
SO THE, WITH THE, THEIR INTERIM RATE ADJUSTMENTS, SO YOU FILE 'EM EACH YEAR WITH THE, WITH THE RAILROAD COMMISSION, WITH THE CITIES AS WELL.
WE GIVE THAT COPY TO FREDDY AND WE HAVE THE OP, WE HAVE THE, UH, THE OPTION OF EITHER GOING TO THE CUSTOMER CHARGE OR BIOMETRIC WITH, WITH WHAT WE'VE DONE RATCHETING DOWN WITH THE, THE, THE CUSTOMER CHARGE AND THE VOLUMETRIC IS, IS WHAT, 78 CENTS OR SO THE NEXT FEW YEARS, WE'LL PROBABLY GO TO THE CUSTOMER CHARGE.
WE HAVEN'T PREPARED A FILING YET.
UH, IT'S USUALLY DONE AT THE BEGINNING OF THE YEAR, EVERY YEAR.
AND YOU'LL PROBABLY SEE SIMILAR TYPE INCREASES GOING FORWARD.
AND AT THIS TIME WE'D EXPECT THEM TO GO TO THE CUSTOMER CHARGE.
BUT AGAIN, WE HAVEN'T EVEN PREPARED THE FILING YET OR EVEN TO EVEN KNOW WHAT THE IMPACT MIGHT LOOK LIKE ON THERE'S, YEAH.
'CAUSE I THINK IT WAS MENTIONED IN THE EARLIER PRESENTATION
[01:15:01]
THAT THAT CUSTOMER CHARGE WENT FROM SOMETHING LIKE $18 UP TO $47 OVER YES.THAT OVER THE FIVE, SIX YEAR PERIOD.
SO IT ALL DEPENDS ON HOW, HOW, YOU KNOW, HOW LONG WE KEEP THAT RUNWAY GOING.
YOU'RE REQUIRED TO FILE A FULL STATEMENT OF INTENT AFTER THE FIFTH ANNIVERSARY OF THESE.
SO IT ALL DEPENDS ON WHAT, WHAT WE ULTIMATELY DO WORK.
AGAIN, WE'LL WORK WITH MR. HERRERA, THE ATM COALITION, AND OF COURSE THE UN CORPORATE AREAS THAT ARE AT THE RAILROAD COMMISSION AS WELL.
IF I COULD ADJUST JUST ONE PLEASE.
ONE POINT ON THAT, UH, CHRIS, IN TERMS OF THE RECENT SETTLEMENT THAT WE REACHED ON GRIP, ONE OF THE AGREEMENTS THAT WE REACHED WAS THAT ATMOS WOULD ALTERNATE, UH, RECOVERY.
WE DID THAT IN IN MID TEXT AS WELL, I BELIEVE.
WE'LL, WE'LL CONFIRM, WE'LL CONFIRM
BUT ANYWAY, THAT THE OPTION IS THERE TO ALTERNATE BETWEEN AND, AND ONE REASON THAT IT IS, UH, NOT JUST ATMOS, BUT MOST UTILITIES, THE MIC, YOU COME TO THE MIC PLEASE.
NOT JUST ATMOS, BUT MOST UTILITIES HAVE, HAVE, HAVE USED THE CUSTOMER CHARGE FOR THAT BECAUSE IT'S, IT'S DIFFICULT TO DESIGN A VOLUMETRIC RATE THAT WOULD RECOVER THAT AMOUNT, ESPECIALLY, UM, WHEN, WHEN YOU HAVE COST OF SERVICE RATES FOR A LARGER DIVISION AND THEN YOU'RE TRYING TO DIVIDE IT UP FOR THE, THE GRIP CUSTOMER.
SO IT'S JUST A MORE COMPLICATED METHODOLOGY TO, TO TRY AND COME UP WITH, UM, VOLUMETRIC RATES THAT ARE GONNA RECOVER THE RIGHT AMOUNT.
UH, YES, UH, VICE CHAIR ROBBINS, IF YOU'RE THROUGH, PLEASE GO AHEAD.
UH, WELL, I HAVE ABOUT, I'VE BEEN KEEPING TRACK OF SLIDES, UH, AND OKAY, ON SLIDE FOUR, IT, UH, I DUNNO IF I HAVE IT THERE.
IT TALKS ABOUT, UH, HOW MUCH MONEY WENT TO LOW INCOME CUSTOMERS, BUT IT DOES NOT TELL ME, UH, HOW MANY CUSTOMERS GOT WHAT AMOUNT OF MONEY.
UH, YOU MAY, I DON'T KNOW IF YOU'RE FROM AUSTIN, I DO NOT KNOW IF, UH, UH, ANY OF THE FOUR OF YOU ARE SERVED BY AUSTIN ENERGY, BUT IN AUSTIN, UH, WE HAVE A CUSTOMER ASSISTANCE PROGRAM, AND I'M GONNA GUESS IT PROBABLY, UH, SERVES ABOUT 50 OR 60,000 CUSTOMERS.
I DON'T, I USED TO KNOW THE EXACT FIGURE.
SO IT, IT SERVES AS MANY AS 80,000 CUSTOMERS AND THESE CUSTOMERS, EACH BETWEEN AUSTIN WATER AND AUSTIN ENERGY, UH, CAN RECEIVE, UH, FIVE, $600 PER, UH, PER ACCOUNT PER CUSTOMER.
AND I COULD BE WRONG, BUT I DON'T THINK YOU ALL ARE DOING THAT.
PLEASE CORRECT ME IF, IF I AM WRONG CUSTOMER.
NO, I MEAN, I CAN SHARE INFORMATION THAT WE HAVE ON OUR, UM, ENERGY ASSISTANCE, BUT YEAH, I THINK THAT'S WHAT HE'S MEANING.
SO OUR ENERGY ASSISTANCE IN AUSTIN, UM, OVER THE LAST FIVE YEARS, WE'VE CONTRIBUTED 300 TH $34,000.
UM, THAT INCLUDES LIHEAP SHARING THE WARMTH AND OTHER FUNDS TO CUSTOMERS WITHIN THE CITY OF AUSTIN AND ASSISTED 742 HOUSEHOLDS.
THAT'S THE DATA THAT WE HAVE HERE FOR AUSTIN.
UH, AND IS THIS BY SERVING, DOES LIHEAP COME FROM THE FEDERAL GOVERNMENT OR IS THIS A MATCHING FUNDS YOU'RE GIVING TO LIHEAP CUSTOMERS? YES, IT'S A COM THAT'S A COMBINATION OF ALL THOSE FUNDS.
SO IF YOU WANT IT BROKEN OUT, WE CAN PROBABLY PULL THAT DATA.
WHAT I WOULD LIKE YOU TO PLEASE PULL IS HOW MANY CUSTOMERS RECEIVE, UH, WHAT AMOUNT IN MONTHLY DISCOUNTS? UM, SLIDE SIX, WELL SLIDE 12, UH, UH, WHERE YOU SHOWED, UH, HOW EFFICIENT NATURAL GAS WAS COMPARED TO ELECTRICITY.
UH, ANYONE WHO'S WATCHED THE, UH, UH, PROCEEDINGS OF THIS COMMISSION KNOWS HOW MUCH I LOATHE ALL ELECTRIC HOMES.
[01:20:01]
IT'S NOT LIKE I'M TRYING TO DEFEND THEM, BUT THIS CHART IS NOT COMPLETE.YOU HAVE TWO ERRORS HERE, AND I HOPE IN THE FUTURE YOU WILL CORRECT THEM.
ONE ERROR IS THAT YOU ARE NOT USING THE PROPER MIX OF AIR COT BTUS 30 YEARS AGO.
THIS WAS ACCURATE, BUT THERE'S SO MUCH WIND AND SOLAR ON THE SYSTEM NOW, AND THEY DO NOT HAVE CARNO EFFICIENCY LOSSES LIKE GAS OR COAL OR NUCLEAR PLANTS.
AND THIS, THIS IS MEANT TO REPRESENT ONLY NATURAL GAS FIRE GENERATION.
THIS IS COMPARING THE DIRECT USE OF NATURAL GAS WITH THE CONVERSION OF NATURAL GAS TO ELECTRICITY.
UM, THE OTHER THING THAT YOU ARE NOT USING ARE THE, UM, END USES.
I MEAN, NATURAL GAS, UH, MAY LOOK GOOD ON THE FRONT END, BUT WHEN YOU FINALLY BURN IT, I BELIEVE LIKE A WATER HEATER MIGHT BE 61% EFFICIENT, WHEREAS AN ALL ELECTRIC WATER HEATER, UH, WHERE IT, IT MIGHT BE REALLY INEFFICIENT ON THE GENERATION SIDE, IT'S GONNA BE ABOUT 92% OR SO EFFICIENT ON THE END USE SIDE.
SO, WELL, I, I DIDN'T, I DIDN'T DO THESE CALCULATIONS, BUT THE, BUT I CAN GIVE YOU THE SOURCE OF THESE CALCULATIONS, AND THEY'RE SUPPOSED TO BE USING THE MOST COMMON, THE USED, UH, APPLIANCES.
UH, I, I HAVE CREATED SIMILAR CHARTS.
I'M, I'M JUST SAYING THAT IN THE FUTURE YOU MIGHT WANT TO HAVE ANOTHER BAR ON THE END.
UH, IT DOESN'T MEAN YOU WON'T PENCIL OUT MORE FAVORABLY, BUT IT WOULD BE MORE ACCURATE.
UM, ON SLIDE 14, UM, YOU HAVE A SHORT LIST OF APPLIANCE REBATES.
UH, ANYONE WHO HAS ATTENDED THIS COMMISSION FOR THE LAST, I DON'T KNOW, 15 YEARS, UH, KNOWS THAT I DON'T BELIEVE THESE ARE COST EFFECTIVE.
UH, I MEAN, IT IS, THE CENTRAL FURNACES ARE A REAL GOOD DEAL IF YOU LIVE IN MINNEAPOLIS OR SASKATCHEWAN, BUT DOWN HERE IN THE SOUTH, THEY DO NOT PENCIL OUT.
UH, YOU DON'T SAVE ENOUGH GAS FOR THEM TO PAY FOR THE EXTRA COST OF THE, THE, UH, THE FURNACE.
UH, SIMILARLY WITH, UH, TANKLESS WATER HEATERS OR EFFICIENT WATER HEATERS, UH, YOU'RE GONNA SAVE SOME ENERGY, BUT YOU'RE NOT GOING TO SAVE ENOUGH TO, UH, OVERRIDE THE EXTRA COST.
UH, GIVING REBATES FOR CLOTHES WASHERS IS JUST FOR, I'M SORRY, JAW DROPPING, DROPPINGLY WASTEFUL IN TERMS OF MONEY.
YOU'RE NOT GOING TO SAVE ANY APPRECIABLE AMOUNT OF, UH, ENERGY, UH, WITH, UH, WITH, WITH THESE REBATES.
UH, I I THINK THAT THERE ARE SOME THINGS LIKE INSULATION THAT DO PENCIL OUT, BUT THE APPLIANCE REBATES THAT YOU'RE CITING DO NOT, IT'S, IT'S INTERESTING THAT YOU SAY THAT BECAUSE ACTUALLY THE WEATHERIZATION PROGRAMS DO NOT PASS THE COST EFFECTIVENESS TEST WHERE WE GO IN AND, AND INSULATE PEOPLE'S HOMES AND PROVIDE, UM, BENEFITS, THOSE USUALLY WILL NOT PASS THE COST EFFECTIVENESS TEST WE USE.
WE USUALLY DO THAT, UM, THROUGH LOW INCOME PROGRAMS WHERE WE'RE NOT REQUIRED TO MAKE THE PROGRAM COST EFFECTIVE.
THE, THE APPLIANCE PROGRAMS FOR THE REGULATORILY APPROVED COST EFFECTIVENESS TESTS, THE REBATES THAT WE PROVIDE, THEY PASS THOSE TESTS.
OF COURSE, IT'S AN ECONOMIC DECISION OF THE CUSTOMER WHETHER THEY WANT TO, AND, AND THERE'S OTHER FACTORS THAT CUSTOMERS TAKE INTO ACCOUNT BESIDES MONETARY SAVINGS, UM, WENT JUST LIKE, YOU KNOW, OTHER ELECTRIC VEHICLES AND, AND WHATEVER IT IS, THERE, THERE ARE OTHER POLICY DECISIONS THAT A CUSTOMER IS MAKING.
AND SO I CAN'T OPINE AS TO THAT, BUT I DO, I CAN TELL YOU THAT, THAT THESE PROGRAMS MEET THE COST EFFECTNESS TESTS, UM, THAT DESIGNED FOR, UH, REGULATORY EE PROGRAMS, THEN YOU NEED TO FIND ANOTHER CONSULTANT.
[01:25:01]
I PROMISE YOU THEY DO NOT.I HAVE RUN THESE NUMBERS OVER AND OVER AGAIN YEAR AFTER YEAR.
THEY ARE A WASTE OF RATE PAYER MONEY.
I THINK WE KNOW WHERE, UH, VICE CHAIR ROBIN STANDS ON THAT.
DO YOU HAVE ADDITIONAL QUESTIONS? YES, I DO.
UH, I DO NOT UNDERSTAND, UH, TWO OTHER THINGS.
UH, WHY, UH, AND, AND COMMISSIONER SILVERSTEIN, UH, MENTIONED THIS EARLIER, UH, WITH THE, UH, INCREASED, UH, CAPITAL EXPENDITURES, UH, I UNDERSTAND THAT YOU SAY THAT 85% OF THEM ARE SAFETY RELATED, AND I'M SURE A LARGE PERCENTAGE OF IT IS.
BUT WHAT I AM BEWILDERED BY IS THAT IN SAN ANTONIO, WHICH IS A MUNICIPAL GAS UTILITY, THEY HAVE HAD A MAYBE 7% RATE INCREASE IN THE LAST, UH, NINE, 10 YEARS.
AND ATMOS HAS HAD A 162% INCREASE IN THE LAST NINE YEARS.
NOW, I DON'T LIVE IN SAN ANTONIO, BUT I HAVEN'T HEARD THAT THEY ARE A QUAGMIRE OF, UH, GAS RELATED, UH, INJURIES THAT, THAT THEY HAVE OUT.
YEAH, I GET WHAT YOU'RE SAYING.
AND I, IT'S FUNNY THAT YOU MENTIONED SAN ANTONIO BECAUSE I WAS JUST AT THE SEA ROOT CONFERENCE, UM, EARLIER, WELL, I GUESS IT WAS LAST WEEK, AND I WAS ABLE TO TALK WITH RUDY GARZA, WHO'S THE, UM, THE PRESIDENCY, EO OF SAN ANTONIO, WHO USED TO WORK FOR TXU.
SO HE WORKED ON THE ATMOS ASSETS, UH, BEFORE ATMOS ACQUIRED THOSE.
AND, AND I ASKED HIM THAT VERY QUESTION.
AND IT HAS TO DO THEIR, THEY FINANCE THEIR CAPITAL THROUGH CITY BONDS AND THROUGH, UM, DEBT.
AND THEY ALSO DO NOT HAVE THE SAME TYPE OF ASSETS THAT, THAT THE ATMO SYSTEM HAS.
THEY DO NOT HAVE THE SAME RISKS THAT THE, THAT HAVE BEEN POSED.
THIS, THE, THE, UM, BRITTLE PLASTICS, THE MECHANICAL FITTINGS THAT WAS NOT THEIR SYSTEM IS NEWER AND, AND DOESN'T HAVE THE SAME CAPITAL NEEDS AS THE MID TECH SYSTEM.
WELL, I WILL ADMIT THAT I HAVEN'T REVIEWED THE TWO ASSETS, BUT I HAVE OWNED THE SYSTEM SINCE 1942.
UM, FINALLY I WANTED TO ASK ABOUT SECURITIZATION.
I DO REALIZE THAT THIS IS A PASS THROUGH.
WHAT CONCERNS ME IS THAT I'VE NOT HEARD THAT AT MOST HAS CHALLENGED THE WINTER STORM URI COSTS IN COURT IN OTHER STATES.
UH, THERE IS, UH, AS YOU PROBABLY KNOW, AN ONGOING LAWSUIT WITH CIRCLE X OUT OF HOUSTON IN THE HOUSTON AREA, CHALLENGING, UH, THESE, THESE ABSURDLY HIGH PRICES THAT WENT ON FOR THREE OR FOUR DAYS.
I, I DON'T UNDERSTAND WHY, WHY A LARGE COMPANY LIKE ATMOS HAS NOT, UH, UH, CHALLENGED IT.
RIGHT? YOU'RE, YOU'RE INCORRECT ABOUT THAT THOUGH BECAUSE WE, WE EXERCISE EVERY, RIGHT.
WE HAD UNDER OUR CONTRACTS, WE HAVE DIFFERENT CONTRACTS IN THE WHOLESALE MARKET THAT, THAT, UM, THAT YOU ARE REFERENCING IN, IN THAT'S THAT SUIT THAT IS NOT THE SAME, UM, CONTRACTUAL ARRANGEMENT AS A REGULATED PUBLIC UTILITY.
AND SO WE PUSHED BACK ON ALL OF OUR SUPPLIERS AND GOT AND MADE SURE THAT THEY WERE IN COMPLIANCE WITH THE TERMS OF THE CONTRACT.
UM, IN, IN EVERY CASE, BECAUSE WE HAVE A REQUIRE, OUR COSTS HAVE TO BE PRUDENT.
UNLIKE OTHER BUSINESSES, WE HAVE TO GO THROUGH A PRUDENCE REVIEW OF ALL OF OUR COSTS AND WE HAVE TO MAKE SURE THAT WE DO THAT.
SO WE HAVE AN OBLIGATION TO TAKE THOSE STEPS TO MAKE SURE THAT, THAT OUR CONTRACTS WERE NOT BREACHED.
I DON'T BELIEVE YOU'VE ADDRESSED MY QUESTION AND CONCERN GIVEN OUR TIME CONSTRAINTS.
UH, I'M GOING TO, UH, PASS THE WITNESS.
ARE YOU SURE YOU DON'T HAVE ANYTHING ELSE?
[01:30:03]
I COULD GO TILL MIDNIGHT, BUT YOU SAID YOU WANTED TO BE OUTTA HERE BY NINE, SO THANK YOU VERY MUCH.ANY OTHER QUESTIONS FOR OUR GUESTS? UH, NO.
THANK YOU VERY MUCH FOR THE PRESENTATION AND THE Q AND A.
UM, LOOK FORWARD TO SEEING YOU BACK AGAIN.
[4. Staff Briefing regarding Austin Water’s quarterly report on Water Management Strategy Implementation by Kevin Kluge, Environmental Conservation Division Manager of Austin Water. (Part 1 of 2)]
ITEM WE'RE GOING TO, UM, DIP BACK TO ITEM NUMBER FOUR, WHICH IS STAFF BRIEFING ON AUSTIN WATER'S QUAR QUARTERLY REPORT ON WATER MANAGEMENT.HI, GOOD EVENING COMMISSIONERS.
IT'S GOOD TO BE BACK WITH HERE TONIGHT AND I'M EXCITED TO TELL YOU WHAT WE'VE BEEN WORKING ON FOR THE FIRST THREE, THREE MONTHS OF, OF 2025.
UH, THIS IS THE FIRST QUARTERLY IMPLEMENTATION REPORT OF WATER MANAGEMENT STRATEGIES FROM THE 2024 WATER FORWARD PLAN AND WATER CONSERVATION PLAN.
YOU'LL SEE IN THIS REPORT AND IN FUTURE REPORTS, IT'LL BE IN A SLIDE DECK FORMAT.
AND THAT'S JUST TO KEEP THINGS SUCCINCT, UM, AS WE REPORT OUT WHAT WE'VE BEEN WORKING ON.
UM, AND IN THIS PRESENTATION, I'M GONNA TRY TO MOVE THROUGH IT RELATIVELY QUICKLY BECAUSE THERE ARE A LOT OF SLIDES.
BUT FOR FUTURE REPORTS IN FUTURE QUARTERS, THE COMMISSION CERTAINLY CAN COMMUNICATE TO US HOW YOU MIGHT LIKE THIS INFORMATION CONVEYED TO YOU, WHETHER IN THE SAME FORMAT OR SOME OTHER FORMAT.
SO THE QUARTERLY REPORTS WILL BE PROVIDING IMPLEMENTATION UPDATES FOR FIVE BROAD CATEGORIES, UH, WATER CONSERVATION, WATER LOSS, RECLAIMED AND REUSE, WATER, WATER CONSERVATION OUTREACH, AND WATER SUPPLY STRATEGIES.
IN ADDITION, WE WILL BE PROVIDING QUARTERLY WATER USE INFORMATION, BOTH, UH, TOTAL AND BY CATEGORY AND BY PER PERSON.
AS MENTIONED, THIS IS THE FIRST INSTALLMENT OF OUR IMPLEMENTATION REPORT, UM, FOR THE STRATEGIES FROM THOSE TWO PLANS THAT I MENTIONED, QUARTERLY REPORTING OF I IMPLEMENTATION AT THIS SCALE IS A FIRST FOR AUSTIN WATER AND PERHAPS A FIRST FOR ANYWHERE IN THE THE STATE OR NATION.
SO IT WILL BE A WORK IN PROGRESS AND THAT'S HOW WE ARE LOOKING AT THESE REPORTS GOING FORWARD.
WE ARE INTERESTED IN RECEIVING FEEDBACK FROM THE COMMISSION, CERTAINLY, BUT ALL OTHER STAKEHOLDERS ABOUT HOW THIS REPORT CAN BE MORE USEFUL TO PEOPLE, UM, AND MORE UNDERSTANDABLE.
JUST ONE SLIDE BEFORE WE GET INTO THE UPDATES.
UM, TO PROVIDE A FEW NOTES ABOUT SETTING EXPECTATIONS OF INFORMATION IN THE REPORTS.
FIRST OF ALL, THE QUARTERLY REPORT DATA THAT WE ARE PROVIDING SHOULD BE CONSIDERED PRELIMINARY.
IT MAY CHANGE BY THE END OF THE YEAR WHEN WE HAVE OUR YEAR END REPORT.
SECONDLY, WE ATTEMPT TO INCLUDE 2024 HISTORICAL DATA TO GIVE READERS OF THIS REPORT, UH, CONTEXT ON OUR UH, Q1 25 METRICS.
AND FINALLY, THE WATER CONSERVATION PLAN AND WATER FORWARD PLAN, BOTH INCLUDED VOLUMETRIC YIELDS FROM THE DIFFERENT STRATEGIES AND YOU WON'T SEE THOSE YIELDS IN THESE QUARTERLY REPORTS, BUT WE ARE WORKING ON, UH, TRYING TO INCLUDE QUARTERLY YIELDS FOR THE STRATEGIES JUST TO SEE HOW FAR WE'VE BEEN COMING IN IMPLEMENTING AND, UH, PRODUCING RESULTS.
ALRIGHT, FIRST OF THE STRATEGY.
THE STRATEGIES IS WATER CONSERVATION UPDATES.
FOR EACH OF THE STRATEGIES, WE'LL HAVE A SLIDE WITH TEXTUAL UPDATES AND THEN WE'LL HAVE METRICS, THE, THE QUANTITATIVE NUMBERS SHOWING WHAT WE'VE BEEN DOING OVER THE LAST QUARTER.
AND THEN FINALLY, MILESTONE PROGRESS.
IN THE FIRST THREE MONTHS OF THE YEAR, WE'VE REALLY BEEN FOCUSING ON, UH, IMPLEMENTING THE IRRIGATION INSPECTIONS.
THESE ARE IRRIGATION INSPECTIONS FOR ALL NEW HOMES.
AND THEN WE ALSO BEEN WORKING ON COMMERCIAL INSTITUTIONAL CUSTOMERS AND SEEING WHERE WE CAN INTERACT MORE WITH THEM TO SAVE WATER.
AND THEN FINALLY, OUR WATERWISE LANDSCAPE AND RAIN SCAPE PROGRAMS HAVE REALLY HAD A, A MUCH LARGER, UM, SUCCESS RATE IN TERMS OF ACCEPTED REBATES THAN WE'VE HAD IN PREVIOUS YEARS.
[01:35:01]
NEXT SLIDE.SO WATER CONSERVATION METRICS.
THE FIRST METRIC SLIDE DEALS WITH RESIDENTIAL REBATE PROGRAMS. YOU'LL SEE ON THE SLIDE THAT THERE ARE A NUMBER OF 'EM, FIVE OR SIX.
AND THEN WE HAVE A OTHER GROUP IN ALL THE OTHER RESIDENTIAL PROGRAMS TOGETHER.
THE BLUE BARS RE REPRESENT METRICS FROM 2024.
YOU SEE FOUR OF 'EM THERE, OR THREE IF IT WAS ZERO.
AND THE ORANGE BAR IS THE Q1 25 NUMBER OF APPROVED REBATES FOR THOSE.
YOU CAN SEE THAT Q1 OF 25 IS GENERALLY MUCH HIGHER THAN Q1 OF 24.
WE ATTRIBUTE THIS PARTIALLY TO THE REALLY WARM, UM, FOURTH QUARTER THAT WE HAD LAST YEAR.
YOU, AS YOU MAY RECALL, IN OCTOBER IT WAS STILL PRETTY DARN HOT AND REALLY PUT THAT CONSERVATION THOUGHT IN PEOPLE'S MIND, BUT PRIMARILY WE ATTRIBUTE THOSE HIGHER NUMBERS IN Q1 TO THE OUTREACH FROM OUR UH, PUBLIC INFORMATION OFFICE.
2024 WAS A BIG YEAR FOR OUR COMMERCIAL REBATES, UM, THAT WE, IT IS BEEN RATHER LACKLUSTER IN PREVIOUS YEARS, BUT 2024 REALLY CAME ROARING BACK SAVING ROUGHLY 24 MILLION GALLONS, UM, WITH A NUMBER OF COMMERCIAL REBATES.
THE GOLD BAR YOU SEE AT THE BOTTOM THERE, UM, IS FOR OUR FIRST QUARTER.
CERTAINLY WE HAVE WORK TO DO, BUT WE HAVE A NUMBER OF COMMERCIAL REBATES IN THE PIPELINE THAT WE'RE GONNA BE SEEING THE EFFECTS OF THOSE IN FUTURE QUARTERLY REPORTS.
WATER CONSERVATION METRICS FOR OUR COMPLIANCE PROGRAMS. AUSTIN WATER HAS THREE PROGRAMS THAT REQUIRE WATER SAVING, UH, COMPONENTS FOR, UH, UH, COOLING TOWERS, COMMERCIAL IRRIGATION AND CAR WASHES.
YOU DON'T SEE A LOT OF VARIATION OVER THE QUARTERS FROM THESE BECAUSE THEY ARE ANNUAL REPORTS THAT NEED TO BE SUBMITTED IN AND THEN THEY JUST FLUCTUATE A BIT OVER THE FOUR QUARTERS.
BUT THE SAVINGS FROM THESE THREE COMMERCIAL PROGRAMS REPRESENTED 60% OF THE SAVINGS, THE QUANTIFIABLE WATER SAVINGS FROM LAST YEAR, ABOUT 248 MILLION GALLONS SAVED.
THE FINAL METRIC SLIDE FOR WATER CONSERVATION, UM, FOCUSES ON THE ATX WATER PORTAL LEAK UPDATES.
AS YOU MAY RECALL, MY A TX WATER IS AUSTIN WATER'S NEW SMART WATER METER SYSTEM.
I'M HAPPY TO REPORT THAT WE ARE ALMOST ENTIRELY DEPLOYED THROUGHOUT THE CITY.
THERE ARE A NUMBER OF LARGE COMMERCIAL METERS THAT STILL NEED TO BE WORKED ON, AND THOSE ARE ALWAYS THE CHALLENGING ONES.
BUT, UH, VIRTUALLY ALL THE RESIDENTIAL CUSTOMERS AND SMALL COMMERCIAL CUSTOMERS HAVE THESE NEW SMART METERS.
AND ONE OF THE GREAT ASPECTS OF MY TX WATER IS BEING ABLE TO SEND OUT LEAK ALERTS WHEN OR AS THEY'RE DESCRIBED.
CONTINUOUS FLOW ALERTS IS ANOTHER WAY TO DESCRIBE THEM TO CUSTOMERS TO ALERT THEM OF POSSIBLE LEAKS.
ON THE LEFT HAND SIDE, YOU SEE THE NUMBER OF LEAK ALERTS THAT WERE SENT OUT.
IT IT INCREASED UP AND DOWN THROUGHOUT THE YEAR, PRIMARILY SHOWING, UH, THE BUILD OUT THROUGHOUT OF 2024 AND SEASONAL CHANGES IN TERMS OF LEAKS ON THE RIGHT HAND SIDE OR THE ESTIMATED WATER SAVINGS FROM THE MY TSX WATER LEAK ALERTS.
YOU CAN SEE THOSE ARE ALSO GOING UP.
CERTAINLY Q1 OF 25 IS, UM, QUITE A BIT HIGHER THAN Q1 OF 2024 'CAUSE WE HAVE PART OF IT'S BECAUSE WE HAVE MORE METERS OUT THERE AND ABLE TO PROVIDE THOSE LEAK ALERTS TO CUSTOMERS.
AND THEN THE FINAL PART OF EACH UPDATE FOR EACH STRATEGY ARE THE MILESTONES.
THESE WERE, UM, TEXTUAL MILESTONES THAT WERE INCLUDED IN THE WATER CONSERVATION PLAN AND THE WATER FORWARD PLAN, UH, DEMONSTRATING AND DOCUMENTING TO STAKEHOLDERS ON WHAT WE WILL BE DOING OVER THE NEXT COUPLE OF YEARS.
THE MILESTONES THAT YOU SEE IN THIS REPORT ARE FOR 2025, SO YOU WON'T SEE 26 MILESTONES FOR 2027 MILESTONES, BUT THESE ARE ALL THE 2025 MILESTONES.
AND I WON'T BE GOING THROUGH ALL THE TEXT 'CAUSE THERE'S A LOT TO LOOK AT.
UH, BUT WE CERTAINLY ARE OPEN TO ANY QUESTIONS EITHER AT THIS MEETING OR OR LATER ABOUT HOW WE ARE DOING WITH THESE MILESTONES
[01:40:02]
FOR WATER CONSERVATION.SOME OF THE NOTABLE MILESTONES IS THAT WE ARE MOVING ON OUR WATER CONSERVATION, OR I'M SORRY, OUR LANDSCAPE TRANSFORMATION STRATEGY MILESTONES BACK IN APRIL, CITY COUNCIL APPROVED A NUMBER OF LOCAL AMENDMENTS TO THE PLUMBING CODE, WHICH WILL HAVE A BIG IMPACT ON FUTURE, UH, LANDSCAPE WATER USE FOR NEW HOMES.
UM, AND THEN, UH, WE'VE ALSO BEEN WORKING TO IMPLEMENT THOSE IRRIGATION INSPECTIONS AND FOLLOW UP CHECKUPS FOR IRRIGATION SYSTEMS FOR CUSTOMERS, UH, IN THE LAST SEVERAL MONTHS.
UM, WATER LOSS HAS BEEN A LARGE COMPONENT ON WHAT WE'VE BEEN WORKING ON THIS YEAR.
WE, UM, IT WAS A LARGE COMPONENT IN THOSE PLANS BACK IN 2024, THE WATER FORWARD PLAN AND THE WATER CONSERVATION PLAN.
AND WE ARE REALLY LEANING INTO A ADDRESSING WATER LOSS IN OUR SYSTEM.
UH, THIS YEAR A LOT OF WHAT STAFF ARE WORKING ON CAME OUT OF THE BLACK AND VEATCH REPORT.
YOU MAY RECALL WE HIRED AN EXTERNAL CON CONTRACTOR ENGINEERING FIRM TO LOOK AT OUR WATER LOSS ACTIVITIES AND TELL US WHAT WE NEED TO BE WORKING ON.
UH, WE ARE IMPLEMENTING THOSE RECOMMENDATIONS AND WE ARE INCREASING THE AMOUNT OF MONEY FOR SERVICE LINE REPLACEMENTS.
AND ONE THING I WANNA NOTE FOR WATER LOSS THAT ISN'T NECESSARILY IMPLEMENTATION, BUT WE THOUGHT IT WAS IMPORTANT IN NOTING IS THAT, UH, WHILE OVER THE LAST SIX MONTHS, WE'VE REALLY BEEN LEANING INTO WORKING ON WATER LOSS MITIGATION ACTIVITIES.
UM, THE 2024 INFRASTRUCTURE LEAKAGE INDEX, ESSENTIALLY TELLING YOU HOW MUCH OUR REAL LOSS IS, UM, SHOWED TO BE HIGHER THAN IN 2023.
UH, THE REASONS FOR THAT IS DUE TO BETTER DATA.
THAT WAS I IDENTIFIED IN THE BLACK AND BEACH REPORT, AS WELL AS AN INCREASE IN REAL LOSSES DUE TO THE HOT AND DRY SUMMER LAST YEAR, AND PARTICULARLY IN THE LATTER PART OF THE YEAR.
THIS SLIDE SHOWS THE NUMBER OF WATER MAIN LEAKS.
UH, THE Q1 25 LEAKS ARE, ARE A BIT HIGHER THAN THE Q1 OF 2024.
WATER LEAKS IN WATER MAINS ARE OFTEN DEPENDENT ON THE WEATHER.
CERTAINLY COLD WEATHER CAN LEAD TO, UH, LINES BREAKING AND VERY HOT DRY WEATHER, OFTEN EXPERIENCED IN THE SUMMER Q3 OR EVEN IN Q4 'CAUSE I MENTIONED WE HAVE THAT VERY HOT OCTOBER CAN LEAD TO HIGHER LEAKS AND, UH, WATER MAINS.
NEXT SLIDE, SEVERAL OTHER METRICS.
WE LOOK AT THE NUMBER, THE LINEAR FEED OF LEAK DETECTION PERFORMED ON LARGE DIAMETER PIPES ON THE LEFT, SMALLER DIAMETER PIPES ON THE RIGHT, THE LARGE DIAMETER PIPES, UM, THAT LEAK DETECTION IS REALLY MUCH MORE CONTRACT DEPENDENT, UM, WHEREAS WE DON'T WORK MAY BE DONE BEING DONE, BUT YOU DON'T REPORT THE LINEAR FEET UNTIL THE CONTRACT IS DONE.
SO IT'S RATHER CHUNKY AS THE TERM MIGHT BE, UM, DATA TO BE REPORTED.
SO, UH, WORK IS BEING DONE TO ESTABLISH A NEW CONTRACT ON OUR LARGER WATER MAIN, UM, LEAK DETECTION.
ON THE LEFT THERE IS THE SMALLER DIAMETER.
WE ACTUALLY HAVE A TEAM IN-HOUSE AS WELL AS ANOTHER CONTRACT, SO IT'S NOT QUITE AS CHUNKY TO REPORT THOSE, UH, LEAK DETECTION EFFORTS.
SOME OF THE MILESTONES OF WATER LOSS REDUCTION.
AS I MENTIONED, A LOT OF THESE CAME OUT OF THAT BLACK, BLACK AND BEACH REPORT, AND MANY OF THEM ARE OPERATIONAL, UM, RECOMMENDATIONS, UH, LIKE STANDARD OPERATING PROCEDURES THAT WE'RE WORKING ON, UM, THAT STAFF ARE WORKING ON TO IMPROVE OUR REPORTING FOR WATER LOSS.
SO A LOT OF 'EM THERE, BUT, UH, WE'LL JUST MOVE ON TO THE NEXT SLIDE.
TALKING ABOUT RECLAIMED WATER AND AND REUSE WATER.
SOME OF THE THINGS THAT HAPPENED IN THE FIRST THREE QUARTERS OF THE YEAR, UH, THEY COMPLETED A FEASIBILITY STUDY TO LOOK AT THE POSSIBILITY OF FULLY SUBSIDIZING COSTS FOR DEEPLY AFFORDABLE HOUSING UNITS.
UM, IN A NUTSHELL, WHAT CAME OUT OF THAT WAS SAY, YES, IT IS FEASIBLE IF OFF AUSTIN
[01:45:01]
AMENDS THE EXISTING GO PURPLE PILOT INCENTIVE PROGRAMS. AND THEN WE ALSO ADOPTED A WASTEWATER BILLING ORDINANCE FOR ONSITE REUSE SYSTEMS, UH, TO ASSIST IN THAT EFFORT.ON THE LEFT THERE YOU HAVE THE NUMBER OF NEW RECLAIMED METERS.
UM, IN Q1 THERE'S TWO ADDITIONAL RECLAIMED METERS THAT WERE INSTALLED ON THE RIGHT SIDE THERE YOU HAVE THE NUMBER OF LENGTH OF RECLAIMED, UM, MAINS INSTALLED.
AGAIN, THIS IS RATHER CHUNKY BECAUSE IT'S CONTRACT WORK.
UM, YOU ONLY SEE IT WHEN IT'S DONE, NOT WHEN IT'S BEING INSTALLED.
SO WE'LL SEE MORE ADDITIONAL LENGTH OF RECLAIMED METERS AS THE YEAR GOES ON.
NEXT SLIDE ON THE LEFT THERE AGAIN, THE NUMBER RECLAIMED TOTAL METERS.
IT WENT UP OVER THE LAST QUARTER, 222 RECLAIMED METERS ON THE RIGHT, THE VOLUME OF CENTRALIZED RECLAIMED WATER USED.
YOU MIGHT NOTE THAT THE ACTUAL VOLUME OF RECLAIMED WATER WENT DOWN IN Q1 COMPARED TO Q1 OF 24 OR OR THE REST OF OF 2024.
THE REASON FOR THAT IS THAT THE CITY'S JIMMY CLAY GOLF COURSE, WHICH IS A SUBSTANTIAL USER OF RECLAIMED WATER IN 2024, THEY WERE USING A LOT OF THIS RECLAIMED WATER FOR THE REESTABLISHMENT OF TURF AREAS THAT HAD BEEN DYING OFF THAT REESTABLISHMENT IS TAKING PLACE.
SO THEY ARE NOT USING AS MUCH RECLAIMED WATER AS AS THEY HAD IN 2024.
ONSITE WATER REUSE AND GO PURPLE METRICS.
YOU MAY RECALL BACK, UH, WAS IT LAST YEAR OR TWO YEARS AGO, UM, THE CITY COUNCIL APPROVED GO PURPLE, WHICH IS A, A NUMBER OF INCENTIVES FOCUSED ON ONSITE WATER REUSE.
IT WAS INVOLVED APPROVED LAST SPRING.
UM, BECAUSE THESE ARE NEW INCENTIVES AND ARE BEING CONSIDERED IN DEVELOPMENT PLANS, THERE WERE NO INCENTIVES THAT WERE FINALIZED IN Q1 OF 2025.
AND THIS PARTICULARLY, WE WANTED TO REPORT OUT TO YOU BECAUSE IT WAS MENTIONED IN THE RCAS FOR THE GO PURPLE PROGRAM.
I WOULD REPORT THIS TO THE COMMISSION.
SO, UH, UNFORTUNATELY WE CAN'T, UH, SHOW ANY FINALIZED INCENTIVES IN Q1, BUT THINGS ARE BEING DONE.
HOPEFULLY WE CAN SHOW THOSE INTEN INCENTIVES BEING USED IN Q2 OR Q3 OF THIS YEAR.
UM, AND YOU CAN SEE ON THE RIGHT SIDE THERE THAT WE ARE ISSUING ONSITE WATER REUSE PERMITS.
UM, SO GO PURPLE IS PROGRESSING.
UH, WE HERE LIST THE PROGRESS ON THE MILESTONES FOR CENTRALIZED RECLAIM AND DECENTRALIZED RECLAIMED.
UM, WE ARE EXTENDING THE PURPLE PIPE SYSTEM.
THERE ARE FIVE RECLAIMED PROJECTS IN PROCESS AT THE POINT AT THIS POINT.
UM, SO THINGS ARE BEING DONE TO EXPAND THE SYSTEM.
AND THESE ARE THE MILESTONES FOR THE ONSITE WATER REUSE.
UH, YOU CAN SEE AT THE TOP WE GOT ONE FINISHED BY ADOPTING WATER WASTEWATER BILLING ORDINANCE.
UM, ACTUALLY THE MIDDLE ONE WAS ACT AT THE TIME OF THE WRITING OF THIS REPORT THAT AMEND TO TOGO PURPLE RESOLUTION WITH INCENTIVES FOR DEEPLY AFFORDABLE HOUSES, UM, WAS IN PROGRESS, BUT IT HAS BEEN COMPLETED SINCE THEN.
SO THINGS ARE BEING DONE ON THE ONSITE REUSE SIDE.
AND THIS IS THE, THE, THE FOURTH ALMOST LAST CONSERVATION OUTREACH UPDATES.
UM, IN JANUARY AND FEBRUARY, AUSTIN WATER PUBLIC INFORMATION REALLY FOCUSED ON WINTER PREPARATION, UH, TO, UH, HELP PEOPLE AVOID LEAKS DURING THE WINTER AND FREEZING PERIODS AND THE WATER WASTEWATER AVERAGING PERIOD.
HELPING, ENCOURAGING PEOPLE TO TURN OFF THEIR IRRIGATION SYSTEMS IF THEY ARE SO THEY CAN SAVE MONEY YEAR ROUND ON THOSE WATER, UM, SORRY, WASTEWATER, UH, RATES.
AND THEN IN MARCH THEY STARTED TO SHIFT TOWARDS MORE WATER CONSERVATION REBATES, PARTICULARLY LANDSCAPE IRRIGATION.
UH, ONE BIG METRIC FOR CONSERVATION OUTREACH IS THE NUMBER OF PRESS IMPRESSIONS.
THAT'S NOT THE NUMBER OF PEOPLE THAT WE CONTACTED.
THAT'S JUST THE NUMBER OF, UH, VIEWS THAT TOOK PLACE IN THOSE FIRST THREE, THREE MONTHS.
THE VAST MAJORITY OF THOSE, UM, WERE THROUGH PRINT, MEDIA, RADIO, AND DIGITAL PLATFORMS,
[01:50:01]
UH, WITH A, A MUCH SMALLER AMOUNT, UH, LESS THAN A MILLION, ABOUT LESS THAN 250,000 IMPRESSIONS COMING FROM SOCIAL MEDIA AND CONSERVATION WEBPAGE, UM, VISITS.FINALLY, WATER USE AND CONSERVATION.
THIS IS OFTEN ONE THAT PEOPLE LIKE TO, UH, DIVE INTO IS THE GPCD BACK IN NOVEMBER.
WE ARE DIRECTED BY THE CITY COUNCIL TO PROVIDE INFORMATION QUARTERLY ON WATER USE, UM, AND PER PERSON WATER USE.
AND WHAT THIS SLIDE IS SHOWING, UM, FROM LEFT TO RIGHT, IT'S SHOWING TIME FROM 2018 TO QUARTER ONE OF 2025.
THE VERTICAL BARS ARE THE WATER USE FOR IN EACH QUARTER, AND THERE'S STRATA WITHIN EACH ONE OF THOSE BARS SHOWING THE TYPE OF WATER USE THE CUSTOMER TYPE.
SO YOU HAVE SINGLE FAMILY AT THE BOTTOM AND BLUE, AND THEN ORANGE MULTIFAMILY AND GREEN.
AND COMMERCIAL AT THE TOP IS THE NON-REVENUE WATER, UH, FOR EACH QUARTER.
UM, EACH, THE HEIGHT OF EACH OF THOSE QUARTERS IS THE PER PERSON WATER USE.
AND THE GOLD BARS THAT YOU SEE AT THE TOP IS THE ANNUAL AVERAGE GPCD, WHICH IS ALSO SHOWN IN, IN NUMBERS AT THE TOP THERE.
UM, SO Q1 OF 2025 IS ACTUALLY ONE GPCD HIGHER, UH, AND THEN Q1 OF 2024.
UH, THERE'S NOT OFTEN A LOT OF, NOT OFTEN A LOT OF BIG SWINGS IN THE WINTER IN TERMS OF WATER USE, UM, UNLESS YOU HAVE A MAJOR FREEZE AND WATER MAIN BREAK.
BUT, UM, OTHERWISE, UH, Q1 DOESN'T SHOW A LOT OF OF VARIATION USUALLY.
AND BECAUSE THIS IS OUR, UH, FIRST IMPLEMENTATION REPORT AND, UM, PEOPLE ALWAYS LIKE GPCD CHARTS, WE INCLUDED A SECOND GPCD CHART AND THAT PROVIDES THE SAME INFORMATION, BUT IN A MORE LINEAR FLOW FROM REF LEFT TO RIGHT, YOU THE LINES AT THE BOTTOM SHOW THE WATER USE BY DIFFERENT CATEGORIES.
THEY ARE NOT STACKED, UM, BUT THEY, YOU CAN A LITTLE MORE EASY TO SEE FROM LEFT TO RIGHT HOW CHANGE, HOW THEY CHANGE OVER TIME FOR THESE DIFFERENT CATEGORIES.
THE GOLD BAR AT TOP IS THE TOTAL GPCD AND I DIDN'T MENTION THE LAST SLIDE, BUT IT SHOWS BOTH STAGE ONE AND STAGE TWO OF OUR DROUGHT PLANS IN BOTH CHARTS.
AND THEN FINALLY, IN ADDITION TO ALL THESE OTHER ACTIVITIES WE'VE BEEN DOING, UH, WE HAVE BEEN MOVING ON A NUMBER OF WATER SUPPLY STRATEGIES FROM THE WATER FORWARD PLAN, AQUIFER STORAGE AND RECOVERY.
UM, LAKE WALTER LONG WATER SUPPLY RESERVOIR, UM, WHICH IS A, IN A SENSE, UM, AN OFF CHANNEL RESERVOIR, UH, STRATEGY AS WELL AS WORKING ON INDIRECT POTABLE REUSE AND CAPTURING LOCAL INFLOWS.
UM, WE'VE COMPLETED DESKTOP ANALYSIS FOR THE A SR AQUIFER STORAGE AND RECOVERY, AND WE ARE WORKING ON THE DESIGNS CRITERIA AND SPECIFICATIONS FOR THE INDIRECT POTABLE REUSE.
JUST TO WRAP THINGS UP, UH, WATER SUSTAINABILITY IS NOT A SPRINT, IT IS A MARATHON AND WE LIKE TO CONSIDER THESE, UH, QUARTERLY REPORTS IS REALLY OUR TRAINING LOG, TELLING YOU WHAT WE'RE DOING, WHAT WE'RE MOVING ON, AND WE ARE COMMITTED TO BE TRANSPARENT IN OUR EFFORTS IN WHAT WE'RE DOING AND TO ADJUST THESE QUARTERLY REPORTS TO AS VALUABLE AS THEY CAN BE TO STAKEHOLDERS AND, UH, THE COMMISSION.
SO WE APPRECIATE YOUR INTEREST AND YOUR FEEDBACK GOING FORWARD.
AND WITH THAT, IT'S THE LAST SLIDE AND I'M OPEN FOR ANY QUESTIONS.
WE ALSO HAVE, UM, MARISA FLORES GONZALEZ HERE WHO WORKED ON THE WATER FORWARD PLAN, IF THERE ARE QUESTIONS ON THAT.
UH, KEVIN CRITTENTON AND TINA ROMERO IF WE HAVE, UH, ANY OTHER QUESTIONS ON FINANCE.
THANK YOU SO MUCH FOR THE PRESENTATION, APPRECIATE THAT.
UH, OPEN IT UP TO THE FLOOR FOR QUESTIONS FROM COMMISSIONERS.
YES, COMMISSIONER SILVERSTEIN, GO AHEAD.
I HAVE 2 1, 1 QUESTION AND ONE SUGGESTION.
THE QUESTION IS, I APOLOGIZE, NOT EXACTLY A WATER CONSERVATION QUESTION, BUT I HOPE YOU CAN ANSWER IT AND GIVE THE RIGHT ANSWER.
DOES, ARE YOU AWARE OF, OR CAN ANY OF YOU ANSWER THE QUESTION OF WHETHER THE CITY AUSTIN WATER SYSTEM HAS ANY REMAINING LEAD PIPE OR PFAS CONTAINING PLASTIC PIPE LEFT ON ITS SYSTEM?
[01:55:01]
OR CAN Y'ALL GET BACK TO US ON THAT IF YOU DON'T KNOW? I I, I WOULD LOVE TO HEAR A RESOUNDING NO TO BOTH OF THOSEUM, GENERALLY SPEAKING, OUR, UM, INVENTORY OF LEAD CONTAINING PIPES HAS BEEN NEARLY COMPLETED.
UM, I THINK I WON'T GIVE YOU A SPECIFIC NUMBER, BUT IT'S VERY SMALL.
I MEAN, IT WAS LIKE A HANDFUL.
THOSE, AS THEY WERE FOUND, WERE RESOLVED.
WE HAVE TURNED OUR ATTENTION, UH, IN THE LEAD AND COPPER RULE TO, UH, GALVANIZED PIPES.
AND SO THAT HAS A PARTICULAR, UH, NUANCE OF POTENTIALLY PICKING UP OR ENCAPSULATING, UH, THE PREVIOUS USE OF LEAD SOLDER.
LET ME GIVE YOU, I'LL, I'LL JUST FOLLOW UP WITH SOME MORE SPECIFIC DETAILS ON KINDA WHAT THE STATUS OF THAT IS, IF THAT'S OKAY.
UM, SPECIFICALLY JUST GENERALLY ON THE PFAS FRONT, UM, WE ARE TESTING FOR PFAS, UM, AS THAT, UM, UH, UNREGULATED CONSTITUENT BECOMES OF MORE CONCERN, UM, I THINK OUR LATEST WATER QUALITY REPORTS THAT HAVE GONE OUT TO THE PUBLIC DO INDICATE, YOU KNOW, IT'S VERY MARGINAL, UM, DETECTS BUT WELL BELOW ANY, UM, ADVISORY LIMITS.
SO THAT'S SORT OF THE STATUS OF THAT.
UH, AGAIN, WE CAN KIND OF POINT YOU TO OUR WATER QUALITY REPORTS AND HOW THOSE ADDRESS PFAS.
IF YOU LIKE THAT, THAT WOULD BE LOVELY.
AND THEN ONE SUGGESTION, SINCE YOU INVITED THEM, THIS WAS A WONDERFULLY THOROUGH AND DETAILED REPORT, WHICH I APPRECIATE.
IT WOULD BE, I THINK, HELPFUL IF YOU WOULD CONSIDER WHERE APPROPRIATE GO TO, IF YOU LOOK AT, AT SORT OF PAGE HEADINGS, SOMETIMES IT'S MORE USEFUL TO BE DESCRIPTIVE RATHER THAN JUST SAY, THIS IS ABOUT, YOU KNOW, THIS IS THE STATISTIC I'M GOING TO SHOW YOU, BUT TELL US THE PUNCHLINE.
LIKE, THIS SHOWS THAT A SIGNIFICANT REDUCTION IN OOMPH FROM 2024 TO 25 IN THE HEADING OF THE SLIDE, IN THE HEADING OF THE SLIDE, BECAUSE THAT, THAT, THAT HELPS THE, THOSE OF US WHO ARE TIRED OR IT'S BEEN A LONG DAY OR A LONG MEETING.
TELL US THE PUNCHLINE THAT YOU WANNA CONCLUDE, THAT YOU WANT US TO THINK ABOUT WHAT IT IS YOU'RE SHOWING US.
DON'T JUST TELL US LOOK MORE NUMBERS.
THANK YOU COMMISSIONER GERLAND.
HEY, UM, I WAS JUST WONDERING, I JUST HAD A FEW QUESTIONS.
GUESS FIRST OFF, UM, IS THERE ANY DEMOGRAPHIC OR GEOGRAPHIC DATA ON THE PARTICIPATION OF CUSTOMERS IN THOSE REBATE AND CONSERVATION PROGRAMS? WE, WE DO, UH, WE DON'T COLLECT DEMOGRAPHIC INFORMATION ON THE, UM, REBATE THEMSELVES, THE FORMS THEMSELVES, BUT WE DO HAVE SURVEYS TO CUSTOMERS TO GAIN THEIR FEEDBACK AND WE ASK IF THEY'RE COMFORTABLE TO, UH, PROVIDE DEMOGRAPHIC INFORMATION.
UH, SO WE, WE, WE, I CAN PROVIDE WHAT WE HAVE IN TERMS OF REBATES, UM, AF AFTER THIS MEETING.
UM, ONE ON THE, I THINK IT WAS LIKE SLIDE 12, THERE WAS THE INFRASTRUCTURE LEAKAGE INDEX RISING.
UM, AND, AND YOU NOTED THIS, BUT I WAS WONDERING IS HAVE YOU TRIED OR THOUGHT ABOUT CORRECTING THAT DATA FOR DETECTION EFFICIENCY TO KIND OF DETERMINE IF THIS IS SIMPLY A FUNCTION FUNCTION OF LIKE BETTER MONITORING? OR IS THERE ACTUALLY A, YOU KNOW, RISE IN LEAKS FROM EAR TO EAR? UH, YOU MEAN CORRECTING THE, UM, THE DATA PREVIOUS, PRIOR TO 2024? YEAH, BECAUSE IN 2024 YOU INCLUDES THE CORRECTED DATA.
AND UNFORTUNATELY THAT, YEAH, CORRECTING THE DATA MOVED THE ILI UP, UM, WHICH WAS UNFORTUNATE, BUT IT IS GOOD TO HAVE THE CORRECT DATA IN THERE.
UM, THE LEAK ALERTS THAT YOU MENTIONED, IS THERE ANY KIND OF DATA THAT SHOWS SOMETHING LIKE, YOU KNOW, HOW MANY HOUSEHOLDS FIXED, LIKE TAKE ACTION AS A RESULT OF THOSE ALERTS OR, YOU KNOW, IN WHAT KIND OF TIMELY MANNER, UM, LIKE A, ARE ARE YOU ABLE TO SEE THAT THESE ALERTS ARE RESULTING IN INCREASES IN, YOU KNOW, FIXING LEAKS QUICKER? UH, WE DO THE, THE METRICS THAT WE HAVE ARE GENERATED BY THE MITX APPLICATION.
UM, SO WE DON'T HAVE, UH, SPECIFIC, UH, ANALYSIS OF HOW QUICKLY THEY'RE FIXED.
UM, IT, IT'S MORE, I HAVE TO ADMIT, IT'S MORE ANECDOTAL, UH, JUST BY THE NUMBER OF PEOPLE WE GET SAYING, HEY, THANK YOU FOR TELLING ME ABOUT THIS, THIS LEAK.
UM, THEY'RE TAKING CARE OF IT.
[02:00:01]
HAVE METRICS ON, ON HOW QUICKLY THEY'RE FIXED.OTHER QUESTIONS? UH, COMMISSIONER LUKI? YEAH, THANK YOU.
UM, CURIOUS ABOUT HOW IT IS, UH, THE, MY A TX, UH, WATER ACTUALLY, UM, CONTACTS CUSTOMERS WHEN THEY HAVE A LEAK, IS IT A EMAIL, A TEXT, A IT? IT IS, UH, IT'S AN EMAIL.
UH, GENERALLY, UM, IF PEOPLE DON'T HAVE A EMAIL ADDRESS BUT THEY HAVE A A ADDRESS, EVENTUALLY IT WILL SEND THEM.
UM, BUT REALLY IT'S MUCH MORE EFFECTIVE.
VERY FEW TEXT, UH, ARE SENT OUT BY THE SYSTEM.
YEAH, IT SEEMS LIKE THE TEXT WOULD BE THE WAY I WOULD GO.
UM, AS FAR AS EMERGENCY WATER, UH, LEAKAGE, PART OF IT IS, IS COLLECTING THE TEXT.
PEOPLE AREN'T NECESSARILY, UM, DON'T ALWAYS PROVIDE, UH, THE TEXT, UM, NUMBERS.
UM, BUT HOPEFULLY WE CAN MOVE THAT DIRECTION.
NO, I, YES, I, I WOULD ADD A, A BIG PART OF THAT IS ADOPTION OF, AND UTILIZATION OF OUR PORTAL.
SO THIS IS A PITCH, YOU KNOW, GO TO THE WEBSITE, YOU KNOW, SIGN UP FOR THE PORTAL.
UM, I DO GET TEXT MESSAGES, YOU KNOW, ABOUT MY WATER USE ON A REGULAR BASIS SO YOU CAN DO IT.
AND WE AGREE IT'S, IT IS AN OPPORTUNITY, BUT, UM, WE DON'T JUST LIKE HAVE GENERALIZED ACCESS TO PEOPLE'S CELL PHONE NUMBERS.
SO WE HAVE TO HAVE THEM GIVE THAT INFORMATION TO US THROUGH THE, THE PORTAL.
AND THAT'S ONE OF THE, THE BENEFITS AND VALUE OF THAT SYSTEM.
SO I FEEL LIKE I TELL YOUR NEIGHBORS NOT REALLY HEARD ABOUT THIS.
IS THERE SOME KIND OF OUTREACH PROGRAM Y'ALL GONNA DO WHERE YOU TEACH US ALL ABOUT HOW TO GO TO THE PORTAL? WELL, WE CERTAINLY COULD COME BACK IN A MEETING AND, AND PROVIDE THAT.
UH, IT'S REALLY FOCUSED, THEY REALLY PUT A LOT OF, UH, WEIGHT ON, PARTICULARLY WHEN PEOPLE SIGN UP, THEY, THEY TRY TO GET IT, THE INFORMATION BROADLY OUT, PARTICULARLY WHEN PEOPLE SIGN UP, UH, THEY REALLY TRY TO GET THEM INTO THE PORTAL.
YEAH, IT SEEMS LIKE THAT THAT SHOULD BE SOMETHING THAT, I DON'T KNOW, YOU SHOULD, UH, MAKE AN EFFORT TO ACTUALLY DO MUCH MORE OUTREACH ON THAT, UH, BECAUSE THAT SOUNDS LIKE A REALLY GOOD IDEA TO, TO HAVE THAT KIND OF COMMUNICATION GOING ON.
UM, AND, AND YOU'RE RIGHT, THE MAY TAKES WATER IS SOMETHING WE'RE REALLY TRYING TO LEAN FORWARD IN.
THE MILESTONES ARE A NUMBER OF THEM, BUT A LOT OF THE MILESTONES ARE TRYING TO FIND, UH, WAYS TO BETTER PEOP DRAW PEOPLE IN AND BETTER COMMUNICATE WITH THEM OUT.
RIGHT ON, ON ANOTHER LE UH, SUBJECT, UM, HOW MANY RECLAIM WATER TOWERS DO Y'ALL HAVE HERE IN AUSTIN NOW? OOH, RECLAIM WATER TOWERS, KEVIN, DO YOU, I MEAN, WE'VE GOT ONE RIGHT HERE ON 51ST STREET.
I WAS WONDERING IF THERE ARE ANY MORE.
SO I'M DOING THIS FROM MEMORY AND TO THE BEST OF MY KNOWLEDGE, I THINK WE HAVE TWO RECLAIM WATER TANKS.
ONE IS OUT ON, ON TOPLESS, AND THE ONE IS HERE ON 51ST STREET.
OF COURSE, 51ST STREET'S KIND OF ICONIC IN ITS LOOK.
UM, UM, BUT THOSE ARE KIND OF OUR TWO PRIMARY ELEVATED STORAGE TANKS.
OTHERWISE WE ARE, WE DO HAVE LIKE AN ELEVATED STORAGE TANK AT OUR SOUTH AUSTIN REGIONAL WASTEWATER PLANT, WHICH IS SORT OF WHERE THE RECLAIM SYSTEM STARTS FROM THE SOUTH.
SO YOU COULD INCLUDE THAT AS THREE.
BUT SO ARE THERE ANY OTHERS BEING PLANNED? I WOULD HAVE TO LOOK AT OUR LONG RANGE PLAN ON KIND OF HOW, UH, I MEAN EVENTUALLY THE ANSWER WOULD BE YES, BUT I DON'T KNOW THAT WE HAVE THEM SPECIFICALLY IDENTIFIED OR CITED, FOR INSTANCE.
SO I CAN DO SOME RESEARCH AND TRY TO GET BACK WITH YOU ON THAT.
WELL, I'VE ALWAYS FELT LIKE THIS IS A, A GENIUS PLAN AND, AND, UH, I KNOW THAT SINCE, UH, THE MILLER DEVELOPMENT WAS INVENTED ON, UH, FROM SCRATCH ON THE 700 ACRES WE'RE SITTING ON, THAT WAS EASY TO ACTUALLY BUILD IN A, A RECLAIMED WATER SYSTEM HERE BECAUSE THERE WASN'T ANYTHING HERE BEFORE.
AND SO I THINK THAT WAS REALLY AN IMPRESSIVE IDEA THAT Y'ALL CARRIED OUT AND I WAS REALLY HOPEFUL THAT IT WOULD BE SOMETHING THAT WOULD JUST SWEEP ACROSS THE CITY.
BUT, UH, WE ONLY HAVE THREE NOW, AND I THINK Y'ALL BUILT THAT ONE IN 2008 MAYBE.
THANK YOU COMMISSIONER SWARTZ.
YEAH, I, I HAVE A, ANOTHER QUESTION ON THE ALERTS.
SO I GET, UH, FREQUENTLY, I GUESS I SIGNED UP FOR THE A TX PORTAL PROBABLY A YEAR AGO.
I FREQUENTLY, FREQUENTLY GET EMAILS THAT ARE LIKE UNPLANNED USE DETECTED, DO YOU KNOW, SO THERE'S GOTTA BE A DISTINCTION BETWEEN ACTUAL LEAKS AND THOSE EMAILS.
[02:05:01]
JUST WE USE MORE GALLONS THAN AVERAGE OR THAN LIKE ONE STANDARD DEVIATION THAT DAY.THERE'S, YOU KNOW, IT'S NEVER IDENTIFIED A LEAK FOR US.
IS THERE A DISTINCTION THERE? DO YOU KNOW HOW MANY OF THOSE IS ACTUALLY LIKE A, LIKE, UH, I GUESS THERE'S DIFFERENT TYPES OF ALERTS THAT THE SYSTEM CAN SEND.
IS THAT TRUE? I, I THINK PART OF THE ANSWER WOULD BE, AS YOU ALLUDED TO, THAT MIGHT BE A, A LARGE AMOUNT OF WATER YOU USED ON ONE DAY, WHEREAS THE APPLICA AND THAT MIGHT SAY, HEY, YOU'RE AN UNEXPECTED HIGH WATER USE MM-HMM
THE LEAK, UM, ALGORITHMS, WE'LL LOOK AT WATER, YOU KNOW, BEING OVER A NUMBER OF HOURS AND I DON'T REMEMBER HOW MANY HOURS THOSE ARE OF A ALMOST CONSISTENT OR SIMILAR LEAKS RIGHT.
ARE USED OVER THAT TIME PERIOD.
SO THE, THE CHART THAT YOU SHOWED THAT JUST RELATES TO LEAKS AND NOT THE UNPLANNED WATER USE ALERTS.
JUST THE LEAK ALERTS OR CONTINUOUS USE ALERTS.
MY OTHER QUESTION IS JUST THE, I THINK THE CHART WITH THE INDEX SAID THE INCREASE TO 5.4 WAS THE RESULT OF THREE THINGS.
DO YOU HAVE A SENSE OF HOW MUCH REAL LOSSES DID CONTRIBUTE TO THAT VERSUS THE OTHER TWO, WHICH WERE THE METERING IMPROVEMENT? SO HOW MUCH WAS REAL LOSSES ACTUALLY INCREASING FROM 2023 TO 24? WE DO, BUT I DON'T REMEMBER WHAT THAT IS.
SO, UH, WE CAN GET BACK TO YOU ON THAT.
UH, CERTAINLY HAVE THAT NUMBER.
ANY OTHER QUESTIONS? I, I DO HAVE A COUPLE QUESTIONS.
UM, THANK YOU FOR THE PRESENTATION.
CAN I GO BACK AND ANSWER ONE THAT WAS OPEN? OH, SURE.
UM, IN OUR PREVIOUS, UM, RECLAIMED LONG RANGE PLAN, IT IDENTIFIED 1, 2, 3, 4, 6, 7 ELEVATED STORAGE TANKS FOR OUR RECLAIM SYSTEM.
SO JUST AS A GENERAL REFERENCE, UM, OBVIOUSLY THE TIMING AND NEED OF THOSE ARE BASICALLY BASED ON SYSTEM RESILIENCE AND SYSTEM DEMAND.
SO, YOU KNOW, THE, THE, THE CHALLENGE IS JUST TO TRY TO STAY WITH THE SYSTEM AND PUT THEM, YOU KNOW, OUT WHEN THEY'RE NEEDED.
UM, REALLY QUICKLY, NON-REVENUE WATER THAT REFERS TO LEAKS ON THE CITY SIDE OF THE METERS, UM, RIGHT.
LEAKS AND A, A FEW OTHER MISCELLANEOUS THINGS.
UM, ON SLIDE SIX THERE, UH, IS A SERIES OF CHARTS ON THE APPROVED REBATES, DROUGHT SURVIVAL TOOL, IRRIGATION UPGRADES, ET CETERA.
UM, THE Y AXIS IS THAT IT SAYS APPROVED REBATES.
IS THAT THE NUMBER OF REBATE APPLICATIONS THAT WERE APPROVED? CORRECT.
THE NUMBER OF APPROVED REBATES.
SO IN THE QUARTER, SO 35 PEOPLE IN Q1 OF 2024 APPLIED AT FOR, AND WERE APPROVED FOR REBATES FOR DROUGHT SUR SURVIVAL TOOLS.
UM, I THINK IT WOULD BE HELPFUL TO ALSO HAVE THE AMOUNT OF DOLLARS THAT THESE REBATES REPRESENT.
SO WE COULD SEE, YOU KNOW, HOW MUCH MONEY IS, IS BEING USED.
'CAUSE I, MY MY IMPRESSION IS THAT THESE REBATES ARE NOT VERY SIGNIFICANT.
SOMETHING IN THE, ON THE ORDER OF A A HUNDRED THOUSAND DOLLARS A YEAR OR SOMETHING LIKE THAT.
I WOULD, YES, THAT'S IN THE RIGHT NOT ORDER OF MAGNITUDE, NOT RESIDENTIAL REBATES.
UM, ALTHOUGH THEY CERTAINLY HAVE BEEN MUCH MORE, UH, PREVALENT THIS YEAR.
UM, BUT, UH, AND I CAN'T REMEMBER HOW MUCH IT WAS.
I DO SEE THE, BUT IT WASN'T MULTIPLE HUNDREDS OF THOUSANDS.
YES, I DO SEE THE INCREASE IN, IN, UH, Q1, SO IT LOOKS LIKE THAT'S ON THE RIGHT TRACK.
SO THAT'S, THAT'S GREAT TO KNOW.
UM, WOULD LOVE TO SEE THE DOLLAR FIGURES AND THEN JUST IN GENERAL, UM, UNITS ON THE Y AXIS WILL, WILL BE HELPFUL.
UM, SOMETIMES IT'S NOT CLEAR WHAT I'M, WHAT I'M LOOKING AT.
UM, AND THEN, UH, I THINK YOU MENTIONED THAT WITH THE SMART METERS, THE, THERE, IT ENABLES VISIBILITY INTO WHEN IRRIGATION SYSTEMS ARE BEING USED OUTSIDE OF THE, UM, APPROVED SCHEDULE MM-HMM
UM, SO THAT THE, UM, VIOLATORS MAY BE SENT HELPFUL REMINDERS.
UM, SO THERE'S NO, IS ARE THERE PENALTIES AND FINES BEING ENFORCED FOR, UM, ON THE RESIDENTIAL SIDE FOR, UM, IRRIGATION OUTSIDE OF THE DAYS? THERE, THERE ARE, IF AUSTIN WATER STAFF, UH, WITNESS THE VIOLATION
[02:10:01]
UHHUH, UH, WE HAVE PATROLS, UH, IN, IN THE EVENING, THE NIGHT, MIDNIGHT TIME PERIOD IN THE EARLY MORNING MM-HMMUM, THAT GO OUT, UH, THROUGHOUT THE IRRIGATION SEASON.
AND IF THERE'RE A WITNESS, THERE ARE FINES FOR THAT.
AND WITH THE SMART WATER METERS AND THIS TECHNOLOGY, IS THERE ANY SENSE THAT IN THE FUTURE THERE WILL BE LESS OF A NEED FOR HUMAN WITNESSING OF THESE? I AM HOPING SO.
UM, AND ONE OF THE MILESTONES THAT MAY HAVE JUST GONE THROUGH, 'CAUSE THERE'S A LOT OF MILESTONES, IT TALKED ABOUT PUTTING OUT THESE, UM, COURTESY NOTICES MM-HMM
UH, TO CUSTOMERS WHO MAY BE WATERING OFF SCHEDULE.
UM, WE'VE ALREADY STARTED, UH, WORKING ON THOSE PILOTS, UM, SENDING OUT MORE FRIENDLY, UH, MESSAGES SAYING, HEY, YOU MIGHT CHECK YOUR IRRIGATION SYSTEM BECAUSE THEY MAY NOT BE PURPOSEFULLY WATERING ON THE WRONG DAY.
SOMETIMES IF THE WATER'S IN THE MIDDLE OF THE NIGHT YOU DON'T NOTICE IT, YOU MAY HAVE MULTIPLE SCHEDULES GOING ON THAT YOU DON'T, THAT YOU'RE NOT AWARE OF.
SO, UM, WE CERTAINLY ARE MOVING ON THAT AND IT'D BE GREAT IF WE DIDN'T HAVE NEARLY AS MANY WITNESS VIOLATIONS.
SO AGAIN, KEVIN CRIT AND AUSTIN WATER, I, I JUST WANNA CLARIFY, I THINK ONE OF OUR CHALLENGES, AND WE MENTIONED IT EARLIER, JUST RELATED TO THE IMPORTANCE OF THE ADOPTION OF THE PORTAL AND HAVING COMMUN CONSUMERS USE THAT AS A TOOL TO HELP ADVISE THEIR BEHAVIORS.
IT, YOU KNOW, IT BECOMES A BALANCE, YOU KNOW, AND THE IDEA OF US MOVING TO USE A MI AS A SOME SORT OF A, UH, ENFORCEMENT MECHANISM IS A VERY CHALLENGING CONVERSATION THAT, YOU KNOW, AT THIS POINT WE'RE NOT, UM, KIND OF ADVOCATING THAT.
UM, BUT CERTAINLY THE IDEAS OF USING IT TO REMIND PEOPLE AND, YOU KNOW, UM, YOU KNOW, SORT OF INCENT, YOU KNOW, APPROPRIATE BEHAVIOR IS SORT OF THE DIRECTION THAT WE'RE HEADED.
SO I JUST WANT TO KIND OF CLARIFY THAT PARTICULAR TOPIC.
AND WE FOUND IN A NUMBER OF TALKING TO A NUMBER OF UTILITIES THAT UTILIZE THEIR SMART METER SYSTEMS LIKE THIS, THAT SIMPLY THE NOTIFICATION OF CUSTOMERS CHANGES THEIR BEHAVIOR FOR 50 TO 80% OF THE CUSTOMERS WHO RECEIVE THOSE NOTICES.
UM, IN THE ELECTRIC INDUSTRY, WE HAVE BEEN USING A SIGNIFICANT AMOUNT OF, UM, ONLINE GAMIFICATION KINDS OF THINGS WITH DATA TO ENCOURAGE TO, TO EDUCATE AND ENCOURAGE CONSERVATION OF, OF ELECTRIC USAGE.
HAVE YOU CON, IS THAT BEING DONE AT ALL IN THE WATER INDUSTRY? IT SEEMS LIKE IF, IF THERE IS SOME ADOPTION, SOME THOUGHTS ABOUT DOING THAT, AUSTIN WOULD CERTAINLY BE A PRIME MARKET FOR THE USE OF GAMIFICATION TO INCENT, I THINK A DEMAND RESPONSE.
WE, WE ARE NOT CURRENTLY, I KNOW THAT, UH, OTHER UTILITIES, PARTICULARLY ONES THAT COME TO MY MIND ARE UTILITIES IN THE, THE PRIVATE UTILITIES IN THE UK, UM, WHO ARE FURTHER ALONG WITH THIS.
UM, BUT WE HAVE NOT, I THINK IT'D BE GREAT TO MOVE TOWARDS THAT.
UH, BUT A AS I MENTIONED BEFORE, YOU KNOW, WE JUST GOT ALL THE METERS IN THE GROUND.
NOW OUR CHALLENGE IS LEARNING HOW TO USE THAT INFORMATION, HOW TO USE THAT PORTAL.
WELL, MAY, THERE, THERE ARE A NUMBER OF ELECTRICITY USAGE, UM, PHONE APPS THAT DON'T EVEN REQUIRE DIPPING INTO THE CUSTOMER USAGE THAT ARE NONETHELESS GOOD TRAINING EXERCISES.
YOU KNOW, LIKE DO THIS AND, AND CHECK IT OFF AND, AND GET SOME KIND OF PRIZE AND MIGHT BE WORTH LOOKING AT HOW TO TRANSFER THAT INTO HERE AS PART OF THE, THE DROUGHT SURVIVAL AND CONSERVATION TOOLS.
ALSO, IT'S A WAY TO KEEP KIDS BUSY OVER THE SUMMER.
ALRIGHT, THANK YOU VERY MUCH, UM, FOR THE PRESENTATION.
[6. Presentation on ideas that can increase effectiveness of Austin's water conservation programs and strategies. (Sponsors: Robbins, Davis)]
SO KIND, IS TO STAY.UH, VICE CHAIR ROBBINS ON, UH, FOR ITEM NUMBER SIX, HAS, UH, GENEROUSLY PREPARED A PRESENTATION ON IDEAS THAT CAN INCREASE EFFECTIVENESS OF AUSTIN'S WATER CONSERVATION PROGRAMS. TAKE IT AWAY, PAUL.
UH, I'M STILL GETTING OVER THE NATURAL GAS PRESENTATION, SO FORGIVE ME.
OVER THE PAST FEW MONTHS, I'VE BEEN RESEARCHING THE HISTORY, SUCCESSES, AND
[02:15:01]
CHALLENGES OF AUSTIN'S WATER CONSERVATION EFFORTS SINCE THEIR BEGINNINGS IN THE EARLY 1980S.THE PURPOSE OF THIS PRESENTATION IS TO PROVIDE ANOTHER PERSPECTIVE TO AUSTIN WATERS BRIEFING ON THE AGENCY'S CONSERVATION PROGRESS.
THIS PRESENTATION HAS TWO MAIN GOALS.
FIRST, IT IS TO CONVEY A SENSE OF URGENCY.
AUSTIN HA IS AS LITTLE AS 15 YEARS AND ONE BAD DROUGHT AWAY FROM DRY LAKES AND A WATER CRISIS.
THIS IS NOT SCIENCE FICTION AND WATER EFFICIENCY IS THE BEST ALTERNATIVE WE HAVE.
SECOND, I FEEL THERE'S A SENSE OF COMPLACENCY THAT SINCE SOME OF OUR WATER CONSERVATION PROGRAMS HAVE BEEN SUCCESSFUL, THERE IS LITTLE ROOM TO IMPROVE.
SO I WILL DISCUSS SOME STRATEGIES AND IDEAS THAT CAN MAKE OUR CITY EVEN MORE EFFICIENT.
I, UH, RESPECT YOUR TIME AND I HAVE TAILORED THIS TO ABOUT 14 MINUTES.
NEXT SLIDE HERE IS A CHART OF THE PREDICAMENT THAT WE ARE IN.
IT TAKES THE LOW LEVEL OF HIGHLAND LAKES IN APRIL OF 2024, AND THEN OVERLAYS THE HISTORIC DROUGHT OF RECORD OF THE 1950S AND THE FIRST COLOR, THE REAL DROUGHT OF RECORD IN THE 18TH CENTURY.
AND THE SECOND COVER COLOR STRESSES FROM GLOBAL WARMING IN THE THIRD COLOR SEDIMENTATION, UH, SILTATION.
THAT REDUCES LAKE CAPACITY IN THE FOURTH COLOR AND WATER USE DUE TO POPULATION INCREASES THAT ARE EMBEDDED IN THE CHART.
AND IT SHOWS THAT IN A WORST CASE SCENARIO, WE COULD HAVE UNMET DEMAND SEEN IN THE LIGHT CHECKERED BLUE BY 2040.
AUSTIN WATER HAS ACTUALLY RUN SIMILAR SCENARIOS.
UH, LAKES ONLY 200 MILES WEST OF US HAVE GONE DRY.
AGAIN, THIS IS NOT SCIENCE FICTION SLIDE.
THIS CHART SHOWS THE AVERAGE ANNUAL TEMPERATURE IN TRAVIS COUNTY AND HOW IT BEGAN TO SPIKE IN 2009 SLIDE.
AND THIS CHART SHOWS HOW OUR LAKE CAPACITY DROPPED TO HISTORIC LOWS AROUND 2011.
BECAUSE OF DROUGHT AND OVERUSE, IT RUNS THROUGH THE BEGINNING OF 2025, BUT AS OF TWO DAYS AGO, OUR LATE CAPACITY WAS ONLY 53%.
UH, NOW THIS CHART, UH, SHOWS HOW OUR LATE, UH, THIS CHART SHOWS A DRAMATIC 29% DECLINE IN PER CAPITA PER DAY WATER USE BETWEEN 2006 AND 2023.
A LOT OF THIS IS DUE TO SUCCESSFUL, SUCCESSFUL WATER MANAGEMENT PROGRAMS, INCLUDING WATERING RESTRICTIONS, BUILDING CODES, EFFICIENCY MANDATES, REBATES AND EDUCATION PROGRAMS. SLIDE.
UH, SOME OF IT UNFORTUNATELY, IS ALSO DUE TO INCREASED WATER RATES TIED TO POOR PLANTING DECISIONS LIKE BUILDING THE HANCOCK'S WATER TREATMENT PLANT WHEN IT WAS NOT NEEDED.
IN A VERY REAL SENSE, THE HIGH COST OF THE PLANT BECAME A KIND OF A CONSERVATION DEVICE, DISCOURAGING CONSUMPTION, UH, SLIDE.
NOW, SOME PEOPLE MAY ASSUME THE DECREASED CONSUMPTION RATE CANNOT GO ANY LOWER, CANNOT BE IMPROVED.
AND I'M GOING TO ELABORATE ON A FEW PROGRAMS AND STRATEGIES THAT HAVE THE POTENTIAL TO DRIVE WATER USE EVEN LOWER SLIDE, UH, FIRST COMMERCIAL IRRIGATION RATES.
NOW, THIS IS ONLINE IF YOU WANNA STUDY THIS.
UH, BUT BASICALLY IT'S IRONIC THAT AUSTIN CONSIDERS ITSELF A LEADER IN WATER CONSERVATION, BUT HAS NEVER IMPLEMENTED THIS STRATEGY WHILE OTHER LARGE TEXAS CITIES HAVE.
THIS CHART SHOWS THE WEIGHTED AVERAGE COST IN CITIES LIKE FORT WORTH, HOUSTON, SAN ANTONIO, UH, COMPARED TO THEIR AVERAGE COMMERCIAL RATES IN 2023, THE CITIES CHARGED A PREMIUM FOR IRRIGATION FROM 12 TO 122%.
[02:20:04]
AUSTIN SUPPOSEDLY HAS A SLIGHT PREMIUM DURING THE SUMMER, BUT WHEN THE COST OF THE MONTHLY BASE FEE WAS AVERAGED IN, THERE WAS ACTUALLY A SUMMER DISCOUNT OF 2%.UH, NOTE THAT COMMERCIAL IRRIGATION RATES WERE PROPOSED AT LEAST AS FAR BACK AS 2007 SLIDE.
UH, ANOTHER IDEA IS REBATES FOR COMMERCIAL LANDSCAPE RETROFITS.
YOU KNOW, WE GIVE THESE FOR THE RESIDENTIAL SECTOR AND FOR, UM, HOMEOWNERS ASSOCIATION, UH, CONDOS, BUT NOT FOR THE COMMERCIAL SECTOR.
UH, AUSTIN'S RESIDENTIAL LANDSCAPE PROGRAM IS VERY EXPENSIVE AND RARELY USED.
HOWEVER, COMMERCIAL LANDSCAPES USED NINE TIMES AS MUCH WATER AS RESIDENTIAL LANDSCAPES.
SO RETROFITS MAY BE MORE COST EFFECTIVE, PARTICULARLY IF THEY ARE COUPLED WITH HIGH IRRIGATION RATES THAT WERE JUST DISCUSSED.
ANOTHER STRATEGY IS MAXIMIZING THE COMMERCIAL INSPECTION PROGRAMS. AUSTIN HAS REQUIRED PERIODIC INSPECTION OF LARGE LANDSCAPES, CAR WASHES, AND COOLING TOWERS FOR MANY YEARS.
THEY ENSURE WATER CONSUMING EQUIPMENT AND LANDSCAPES OPERATE TO MINIMUM STANDARDS.
MOST CUSTOMERS COMPLY, BUT DESPITE THE PROGRAM'S LONG HISTORY AND STEEP WATER RATES FOR NON-COMPLIANCE, 20% OF THE SAVINGS IS BEING LOST.
IT'S TIME FOR THE CITY TO LEVY FINES IN ORDER TO MAXIMIZE SAVINGS FROM THIS INITIATIVE.
ANOTHER STRATEGY IS INCREASING REBATES TO CONVERT EFFICIENT, UH, TO CONVERT TO EFFICIENT CLOTHES, WASHERS, AND DISHWASHERS.
THERE ARE ABOUT 10,000 OF THESE LARGE MACHINES IN THE SERVICE TERRITORY.
HOWEVER, DESPITE POTENTIAL SAVINGS OF AS MUCH AS 69% FOR CLOTHES WASHERS AND 75% FOR DISHWASHERS, ALMOST NO REBATE REBATES HAVE BEEN AFFORDED IN THE LAST FEW YEARS.
AN AGGRESSIVE MARKETING PROGRAM NEEDS TO BE IMPLEMENTED TO IMPROVE SAVINGS FOR THESE APPLIANCES.
SLIDE ANOTHER CONSERVATION STRATEGY WITH LOST POTENTIAL IS THE COMMERCIAL BUCKS FOR BUSINESS REBATE PROGRAM.
IN RECENT YEARS, IT'S SUFFERED FROM POOR PARTICIPATION, BUT THERE HAS BEEN A SURPRISING UPTICK IN SAVINGS IN 2024 WITH 24 MILLION GALLONS IN SAVINGS SIX TIMES THE PREVIOUS THREE YEARS COMBINED, ADDING MORE STAFF AND THIRD PARTY VENDORS THAT PACKAGE CONSERVATION RETROFITS, UH, HAVE HELPED GET THIS EXTRA SAVINGS.
UM, THAT, UH, AND SOME OTHER STRATEGIC PLANNING, UH, MIGHT KEEP THIS MOMENTUM GOING.
SLIDE, UH, CONVERTING FROM A 2009, UH, TOILET STANDARD TO THE MOST EFFICIENT UNIT AVAILABLE TODAY WOULD SAVE 68% OF THE WATER USED FOR THIS PURPOSE.
HMM, LET ME, LET ME RECALCULATE.
UH, IT WOULD SAVE ABOUT 50% OF THE WATER USED FOR THIS PURPOSE.
AUSTIN WATER ABANDONED REBATE EFFORTS FOR TOILETS IN 20 20 12 WHEN ABOUT 140,000 INEFFICIENT UNITS, INCLUDING MANY IN COMMERCIAL BUILDINGS WERE STILL IN USE.
THERE WAS A PROPOSAL IN 2007 TO MANDATE CHANGE OUT, BUT THIS HAS BEEN FORGOTTEN AS WELL.
AUSTIN COLLECTS NO STATISTICS ON THIS, AND WE DO NOT KNOW HOW MANY WATER WASTING UNITS STILL EXIST AND HOW MUCH POTENTIAL THERE IS FOR WATER SAVINGS, BUT IT COULD STILL BE SUBSTANTIAL.
SLIDE DEEPER SOILS ABSORB MORE MOISTURE, WHICH ALLOWS TURF AND PLANTS TO
[02:25:01]
SURVIVE WITH LESS IRRIGATION OR NO IRRIGATION DURING DROUGHTS, THEY ACT AS A GIANT SPONGE OF SORTS.THE AUSTIN BUILDING CODE REQUIRES THAT AT LEAST SIX INCHES OF SOIL BE PLACED IN DISTURB AREAS OF NEW RESIDENTIAL LANDSCAPES.
THE STRATEGY WAS ALSO PROPOSED IN 2007, YET THIS CODE IS STILL NOT BEING ENFORCED, UH, IN LARGE RESIDENTIAL SUBDIVISIONS.
SLIDE AUSTIN HAS OVER 3,800 MILES OF WATER PIPE IN 20 23, 12 0.5% OF AUSTIN'S WATER LEAKED, AND THREE QUARTERS, UH, OF IT ORIGINATED IN ABOUT 900 MILES OF OLD CAST IRON, UH, PIPE AND POLYBUTYLENE SERVICE LINES.
UH, DESPITE MAJOR SUCCESSES IN SOME, UH, WATER CONSERVATION PROGRAMS, AUSTIN'S LEAKAGE RATE HAS ACTUALLY GOTTEN WORSE SINCE 2007.
REPLACING CAST IRON AND POLYBUTYLENE WOULD REQUIRE ABOUT $1.6 BILLION IN OVERNIGHT COSTS, BUT AUSTIN'S ONLY SPENDING ABOUT $11 MILLION A YEAR TO REPLACE A FEW MILES OF PIPE.
UM, I'M GONNA GUESS MAYBE SIX MILES OF PIPE HERE.
SLIDE AND MASSIVE REPLACEMENT LIKE THIS IS NOT COST EFFECTIVE IN THE LITERAL SENSE UNLESS IT'S VIEWED ON A 100 YEAR TIMELINE.
PIPES CAN LAST MORE THAN A CENTURY.
EQUIPMENT IN WATER TREATMENT PLANTS MAY ONLY LAST 20 YEARS.
UH, SO WATER TREATMENT PLANT MAY LOOK, UH, LIKE IT HAS A LOWER COST AT THE BEGINNING, BUT BY, UH, THE END OF THE LIFE CYCLE, UH, YOU MIGHT HAVE TO REPLACE, UH, EQUIPMENT, UH, INSTALL EQUIPMENT OR REPLACE EQUIPMENT FIVE TIMES.
SAVINGS FROM WATER PROCESSING COSTS, NEW TREATMENT, PLANT COSTS, OPERATION AND MAINTENANCE COSTS.
NEW AND MORE EXPENSIVE WATER SUPPLY PURCHASES AND SAVINGS FROM MORE CUSTOMERS SERVED BY THE SAME PIPE ALL NEED TO BE CONSIDERED.
SLIDE RECLAIMED WATER TREATS WASTEWATER TO A HIGH STANDARD FOR REUSE.
STATES LIKE FLORIDA, NEVADA, AND ARIZONA RECLAIM MORE THAN 50 50% OF THEIR WASTEWATER.
BUT AUSTIN ONLY ABOUT 7%, ONLY RECLAIMED ABOUT 7% IN 2023.
AND EVEN THOUGH THE NUMBER OF CUSTOMERS INCREASED BY ABOUT FOUR TIMES IN THAT TIME SPAN BETWEEN 2011 AND 2023, THE VOLUME OF RECLAIMED WATER REMAINED ABOUT THE SAME.
AT ITS FULL POTENTIAL RECLAIMED WATER COULD SUPPLY ABOUT 764,000 MORE AUSTINITES SLIDE.
UH, BUILDING A RECLAIMED WATER UTILITY IS EXPENSIVE.
ONE WAY TO LOWER COST IS TO SUPPLY IT TO THE LARGEST CUSTOMERS.
IN SINGAPORE, THE UTILITY SUPPLIES, UH, RECLAIMED, THEY CALL IT, UH, THEY, THEY'VE TRADE NAMED IT NEW WATER TO MICROCHIP FACTORIES.
AUSTIN'S WAFER FABS USE ABOUT 7% OF THE CITY'S WATER THEY COULD SERVE AS A MAGNET FOR NEW RECLAIMED WATER DEVELOPMENT.
THIS MAP SHOWS A PROPOSED LINE TO SAMSUNG, SAMSUNG PICKING UP OTHER LARGE CUSTOMERS ALONG THE WAY.
I PERSONALLY CREATED THIS MAP IN PART BECAUSE AUSTIN WATER DID NOT HAVE ONE.
UH, ANOTHER CHALLENGE TO AUSTIN'S CONSERVATION EFFORTS IS A DEARTH OF LOCAL INFORMATION SATURATION SURVEYS THAT SHOW HOW MANY WATER CUSTOMERS HAVE VARIOUS WATER USING APPLIANCES
[02:30:01]
AND MACHINERY AND END USE METERING THAT SHOWS HOW MUCH WATER IS USED FOR VARIOUS PURPOSES SUCH AS LANDSCAPE WATERING AND CLOTHES WASHERS DOES NOT EXIST.THE ONLY PUBLICLY AVAILABLE MAP OF AUSTIN'S RECLAIMED WATER SYSTEM HAS NOT BEEN UPDATED SINCE 2015 SLIDE.
AND THIS FINAL SLIDE SHOWS THAT HUMOR AND SARCASM ARE YET ANOTHER METHOD OF ENCOURAGING WATER CONSERVATION.
ARE THERE ANY QUESTIONS OR COMMENTS? COMMISSIONERS, THANK YOU FOR THAT PRESENTATION.
COMMISSIONER, VICE CHAIR ROBBINS QUESTIONS OR COMMENTS? GO AHEAD.
COMMISSIONER ROBBINS, I WAS JUST WONDERING, UH, THIS IS CLOSE ENOUGH, THE TOILET MANDATE.
YOU TALKED ABOUT THAT THEY HAD PROPOSED IN 2007.
WHAT WOULD THAT LOOK LIKE IN PRACTICE? DOES THE CITY DO THINGS LIKE THAT WHERE A RETROFIT IS REQUIRED FOR AN OLD BUILDING? I DON'T BELIEVE THE CITY THAT THIS, THIS WOULD BE, UH, THE FIRST THING OF ITS KIND THAT I AM AWARE OF.
THERE MAY BE SOME BUILDING CODE SAFETY, UH, UH, RETROFITS THAT, UH, HAVE BEEN MANDATED.
THIS WOULD BE THE FIRST THING REGARDING ENERGY OR WATER.
COMMISSIONER SILVERSTEIN, A COUPLE DECADES AGO, NEW YORK CITY, UM, AND CONED WENT ON A SIGNIFICANT ENERGY SAVING EFFORT.
AND, AND PARTICULARLY BECAUSE THEY'RE WORRIED ABOUT THE AMOUNT OF ELECTRICITY, ABOUT, ABOUT BEING ABLE TO GET ENOUGH GENER ENOUGH ELECTRICITY DELIVERED INTO NEW YORK CITY.
AND ONE OF THE MOST IMPORTANT THINGS THEY DID WAS THEY PLANNED A, AN AGGRESSIVE CAMPAIGN OF WINDOW AIR CONDITIONER REPLACEMENT FOR APARTMENT BUILDINGS.
AND WHAT THEY ACTUALLY DID WAS, UM, PLAN TO RETROFIT AN ENTIRE APARTMENT BUILDING IN ONE DAY.
SO THEY GAVE EVERYBODY IN THE BUILDING COUPONS.
THEY, THEY HAD, THEY HAD TRUCKS OF AIR CONDITIONERS LINED UP IN BOXES ON THE STREET.
THEY HAD AN ARMY OF ELECTRICIANS.
THEY GAVE EVERYBODY, UM, YOU KNOW, RESTAURANT COUPONS AND MOVIE THEATER TICKETS AND SAID, BE GONE BY NINE, LEAVE YOUR KEY WITH THE SUPER, COME BACK AT FIVE.
YOU'LL HAVE A NEW AIR CONDITIONER.
YOU'LL BE COOLER AND WE'LL ALL SAVE MONEY.
AND IT IS PROBABLY A LITTLE MORE COMPLICATED TO GET AN ARMY OF, OF PLUMBERS TO DO THE SAME THING, BUT IT IS NOT INCONCEIVABLE THAT YOU COULD, PARTICULARLY FOR LOW INCOME HOUSING, DO THE SAME THING FLOOR BY FLOOR IN SOME OF AUSTIN'S OLDER APARTMENT BUILDINGS.
I DON'T THINK YOU NEED TO BE A PLUMBER EITHER FOR THAT.
WELL, I, I I DON'T KNOW THE PEOPLE WHO REPLACED OUR TOILETS CHARGED LIKE THEY WERE PLUMBERS, BUT
UH, WHAT IS THE, THE UPDATE SCHEDULE FOR THE WATER FORWARD PLAN? THAT'S THE PLAN FOR CONSERVATION AND, UM, YES.
ALL OF THE THINGS THAT WE DO TO, IF YOU WILL, YOU'LL NEED TO SEND THAT QUESTION IN.
WE'VE ALREADY, OR WE'LL HAVE TO GO BACK TO THAT ITEM, UM, BECAUSE THIS IS A DISCUSSION ITEM AMONG THE COMMISSIONERS FOR ITEM SIX.
AND SO AUSTIN WATER IS NOT SCHEDULED TO PARTICIPATE IN THIS DISCUSSION.
SURELY THEY'RE, THEY'RE IN THE ROOM.
WHY DON'T WE TAKE, UH, OTHER QUESTIONS FROM COMMISSIONERS AND THEN, UH, IF WE FEEL IT'S NEEDED, WE CAN GO BACK TO THAT ITEM FOR PROCEDURES SAKE.
UM, TO GO BACK TO, UH, COMMISSIONER SWARTZ'S QUESTION, UH, WHEN THIS WAS PROPOSED IN THE 2007 WATER, UH, CONSERVATION TASK FORCE REPORT, UH, I BELIEVE IT WAS THEY WERE MANDATING, UH, FOR COMMERCIAL AND APARTMENTS.
UH, THEY WOULD HAVE TO E EITHER CHANGE IT OUT AT THE TIME OF SALE OR AT A CERTAIN POINT IN TIME, UH, AFTER THEIR PATIENTS RAN OUT.
[02:35:01]
AND THE TIME OF SALE DIDN'T WORK.IN THE CASE OF REIT SINGLE FAMILY HOMES, IT WOULD BE DONE AT TIME OF SALE.
OTHER COMMENTS OR QUESTIONS FROM COMMISSIONERS? I WANTED TO COMMENT ON, ON ONE OF THE ITEMS THAT YOU HAD HERE IN YOUR PRESENTATION, WHICH IS, UH, THE RECOMMENDATION OF THE SIX INCHES OF SOIL ON DISTURBED GROUND.
UM, I, I THINK THIS IS A REALLY GOOD, UM, THING TO DO.
JUST, YOU KNOW, HEALTHY SOIL, UH, CAPTURES A LOT MORE CARBON.
UM, IT ALLOWS FOR, YOU KNOW, FOOD PRODUCTION AND POLLINATION ECOSYSTEM, A LOT OF DIFFERENT THINGS, A LOT OF GREAT BENEFITS FOR THAT.
SO I, I DEFINITELY THINK THAT, UM, YOU KNOW, THAT'S A WORTHY GOAL.
UM, AND I'M JUST WONDERING, WHEN WE THINK ABOUT DEVELOPMENT, UM, AND, YOU KNOW, DIGGING UP FOUNDATIONS AND, AND PUTTING UP MULTIFAMILY UNITS OR EVEN SINGLE FAMILY DEVELOPMENTS, WHERE WOULD THAT NEW SOIL COME FROM IF WE WERE TO MANDATE SIX INCHES ON EVERYTHING THAT'S, THAT'S BEEN DISTURBED, WHERE WOULD WE GET IT? WHERE FROM, UM, A SOIL YARD.
UH, I, I WILL CONFESS THAT I'VE NEVER RESEARCHED THE, UH, SUPPLY CHAIN TO KNOW EXACTLY WHERE TOP SOIL COMES FROM THAT IS SUPPLIED, BUT IT, IT'S, AS YOU KNOW, QUITE COMMON TO SUPPLY IT.
UM, UM, ONE PLACE, I, I MEAN THERE'S A, A COMPOST FACILITY, UH, JUST SOUTH OF AUSTIN THAT, UH, UH, MAKES COMPOST OUT OF YARD WASTE, BUT THAT'S PROBABLY JUST ONE OF MANY.
UH, I SEE COMMISSIONER GERLAND, YOUR HAND IS UP.
JUST TO JUMP IN ON THE TOP SOIL CONSIDERATION.
SO I WORK FOR, YOU KNOW, IN MY PROFESSIONAL LIFE, I'M ENVIRONMENTAL MANAGER FOR RENEWABLE ENERGY COMPANY.
PART OF WHAT WE DO ARE 2000 PLUS ACRE SOLAR SITES WHERE THERE, THERE'S A LOT OF HEAVY CONSTRUCTION DONE.
UM, REVEGETATION IS A MASSIVE CONCERN.
AND SO THIS IDEA OF TOP SOIL MANAGEMENT IS KIND OF A BIG PART OF THAT.
AND, UM, YOU DON'T NECESSARILY HAVE TO TRUCK IN SOIL OFFSITE.
IN FACT, IT'S PREFERABLE THAT YOU DON'T DO THAT WHEN YOU'RE TALKING ABOUT REVEGETATION AND FULL STABILIZATION SOIL STABILIZATION.
UM, YOU WOULD PREFER TO DO AMENDMENTS AND DECOMP COMPACTION USING, UM, EQUIPMENT THAT IS PRETTY COMMON TO MOST, YOU KNOW, HEAVY CONSTRUCTION FIRMS THAT WOULD BE OUT DOING SOMETHING LIKE A MULTIFAMILY DEVELOPMENT.
UM, SO YOU CAN COME IN AND, AND, AND BASICALLY MAKE THE SOIL THAT YOU HAVE, UH, AMENDABLE TO THAT USE.
UM, SO THERE, THERE COULD BE A CERTAIN AMOUNT OF FILL MATERIAL NEEDED, UH, BUT IDEALLY WHAT YOU WOULD DO IS STRIP THE TOP SOIL BEFORE CONSTRUCTION, SEGREGATE THAT, DO YOUR WORK, AND THEN BRING THAT STRIP SOIL BACK, AMEND IT AND DEACT THE SITE.
UM, AND THAT'S USUALLY, YOU KNOW, IN THE, IN THE SOLAR WORLD, THAT'S USUALLY PART OF AN ORDINANCE OR AN AGREEMENT THAT WE SIGN WITH COUNTIES.
UM, SO THAT WOULD PROBABLY BE THE FORM THAT SOMETHING LIKE THAT WOULD TAKE HERE.
SO I, I'M, I APPRECIATE ALL OF THESE, UM, THESE SUGGESTIONS.
I KNOW YOU, YOU PUT A LOT OF, UM, YOU KNOW, TIME AND ENERGY AND RESEARCH INTO, INTO THESE.
AND I GUESS I'M WONDERING IF THE, UM, YOU KNOW, IF THE BEST WAY FOR THE RMC FOR THIS BODY TO WEIGH IN ON SOME OF THESE IDEAS MIGHT BE, UM, BRINGING FORTH A, A RESOLUTION OR IF IT'S, UM, YOU KNOW, RECOMMENDATIONS FOR, UH, THE UPDATES ON THE WATER FORWARD PLAN OR SOME COMBINATION OR SOMETHING LIKE THAT.
I'D, I'D ASK YOU VICE CHAIR, WHAT YOUR THOUGHTS ARE ON THAT.
AND, AND ALSO I'D, I'D LOVE TO HEAR FROM OTHER COMMISSIONERS AS WELL.
I'D BE, I'D BE HAPPY TO WORK ON THAT.
AND THEY, IT'S NOT DEAL, IT'S JUST A WEIRD FIRST THING BECAUSE SPECIFICALLY I, I'D BE DOING SOME PERCEIVED ROLE STUFF.
IT'S JUST A PROCEDURAL, I'M SO SORRY.
[02:40:03]
UM, I'D BE HAPPY TO WORK ON IT.UM, UM, GIVEN EVERYTHING THAT WE BALANCE AND GIVEN THAT, UH, THE, UH, GAS FRANCHISE HAS BECOME A, A PRIORITY NOW, I'M NOT QUITE SURE, UH, WHAT MEETING IT WOULD BE APPROPRIATE AT, BUT I'LL BE HAPPY TO DRAW SOMETHING UP.
AND, UM, I HOPE THAT, UH, THE PEOPLE IN AUSTIN WATER WHO'VE BEEN WATCHING THIS PRESENTATION UNDERSTAND THAT, UM, I HAVE ACKNOWLEDGED THEIR SUCCESSES AS WELL AS THEIR CHALLENGES.
UM, WITH THAT, I AM GOING TO, CAN I JUST MOVE BACK TO ITEM, UH, FIVE? MAY I JUST, OR QUICK FIRST AND A SECOND MAY I HAVE A MOTION? I, MADAM CHAIR, I MOVE THAT WE RETURN TO THE, UM, ITEM FIVE, THE AUSTIN WATER PRESENTATION, PLEASE.
SECOND, WE HAVE A MOTION AND A SECOND.
[4. Staff Briefing regarding Austin Water’s quarterly report on Water Management Strategy Implementation by Kevin Kluge, Environmental Conservation Division Manager of Austin Water. (Part 2 of 2)]
SO WE'LL MOVE BACK TO ITEM NUMBER FIVE ON THE AGENDA.AND JUST TO CLARIFY, I BELIEVE THAT'S ITEM FOUR, ONE OF THOSE ITEMS, ITEM FOUR ON THE AGENDA.
HI, I'M MARISA FLORES GONZALEZ.
I'M THE SUPERVISOR OF OUR WATER RESOURCES TEAM.
OUR WATER RESOURCES TEAM LEADS THE UPDATES TO THE WATER FORWARD PLAN, UM, OUR NEXT WATER FORWARD PLAN, THE TARGET DATE FOR DELIVERY OF THAT WILL BE FALL OF 2029.
SO WE'RE ACTUALLY BEGINNING THE PLANNING FOR THAT UPDATE SHORTLY AFTER HAVING COMPLETED THE PREVIOUS PLAN.
UM, WE ARE ANTICIPATING BEGINNING MORE OF THE COMMUNITY ENGAGEMENT, UM, PROCESS TO INCLUDE, UM, ADDITIONAL INPUT ON WATER MANAGEMENT STRATEGIES, CONSERVATION RIOS AND SUPPLY STRATEGIES, UM, IN THE 2027 TIMEFRAME.
UM, ANTICIPATING KIND OF A TWO YEAR UPDATE PROCESS BEFORE WE MOVE TO, UH, YOU KNOW, UH, SEEK BOARDS AND COMMISSIONS AND COUNCIL APPROVAL OF THAT PLAN.
AND, UM, I WILL MAYBE HAND IT OVER TO KEVIN.
THAT WAS THE QUESTION THAT WAS ASKED WAS ABOUT THE WATERFORD UPDATE TIMEFRAME.
GOOD EVENING, KEVIN CRIT AND AUSTIN WATER.
UM, LEMME JUST IN THE INTEREST OF TIME, UM, WE, WE HEARD, UM, YOUR PRESENTATION, WE CERTAINLY APPRECIATE THE IMPACT, UH, THE INPUT.
UM, OBVIOUSLY THIS IS OUR FIRST TIME SEEING THE PARTICULAR PRESENTATION.
I WILL JUST SAY THAT, UM, YOU KNOW, IN THE BROADEST CONTEXT, I THINK A LOT OF THE STRATEGIES I IDENTIFIED IN THIS PRESENTATION ALIGN VERY DIRECTLY WITH OUR, BOTH OUR WATER, UH, FORWARD PLAN, WHICH IS THE BIGGER, UH, INTEGRATED WATER RESOURCE PLANS.
SO THAT INCLUDES MANY OF THOSE COMPONENTS AS WELL AS OUR WATER CONSERVATION PLANS, WHICH JUST FOR A REC A RECOLLECTION, THOSE ARE TWO SEPARATE DOCUMENTS.
UM, AND SO MAYBE WHAT WE CAN DO IS WORK WITH YOUR LIAISON ABOUT MAYBE, UM, TAILORING SOME OF OUR FUTURE PRESENTATIONS, EITHER IN THE CONTEXT OF OUR WATER RESOURCES, UM, UPDATES OR SPECIFIC PRESENTATIONS AROUND CERTAIN IMPLEMENTATION ASPECTS OF OUR WATER FORWARD PLAN TO TRY TO HIGHLIGHT SOME OF THESE CONNECTION POINTS.
SO I JUST WILL SORT OF OFFER THAT UP AS A, A EASY WAY TO KIND OF, I JUST ACKNOWLEDGE THAT, YOU KNOW, WE'LL TAKE THAT INFORMATION BACK.
I GUESS ONE THING THAT I WOULD ASK, UM, I KNOW THAT WHILE I WAS LOOKING AT THE PRESENTATION, THERE ARE A NUMBER OF QUESTIONS THAT I WOULD HAVE.
SO I GUESS THE, THE POINT WOULD BE, DO I JUST REACH OUT TO COMMISSIONER, UM, ROBBINS ON QUESTIONS? IS THAT THE APPROPRIATE PROTOCOL THERE? UH, YES.
I PRESUMED THAT, UH, YOU SAW THAT THIS WAS POSTED ON THE RMCS WEBSITE AND THAT IF YOU HAD HAD THE TIME, WHICH YOU MAY NOT HAVE HAD, UH, YOU WOULD'VE GLANCED AT IT.
IT WAS NOT MY INTENTION TO BLINDSIDE YOU.
AND WE DID SEE IT, SO I, I DO WANT TO ACKNOWLEDGE THAT WE DID SEE IT.
IT'S JUST THE ABILITY TO SEE IT, UNDERSTAND IT, DIGEST IT.
FOR TONIGHT, GIMME, GIMME A CALL.
THIS IS ALL IN FRONT EASY UNTIL IT ISN'T.
AND I KNOW THERE WERE SPECIFIC QUESTIONS THAT WE PROBABLY DO HAVE SPECIFIC ANSWERS TO AS IT RELATES TO SOIL AMENDMENTS, AS IT RELATES TO TOILET, UM, RETROFIT PROGRAMS. UM, SO WE'LL BE HAPPY TO CONTINUE TO DIALOGUE, UM, THROUGH EITHER PLAN
[02:45:01]
MEETINGS OR IF WE WANT TO OR NEED TO, IF THE, UM, COMMISSION SEES FIT TO ASK FOR PARTICULAR, UM, PRESENTATIONS OR UPDATES ON A PARTICULAR TOPIC, WE'RE CERTAINLY AVAILABLE AND WE'LL KIND OF WORK THAT IN, UH, WITH SOME OF OUR OTHER PRESENTATIONS THAT WE DO FOR OTHER BOARDS AND COMMISSIONS.SO WITH THAT, I THINK I'LL JUST HUSH AND I'VE LISTED IT AS A FUTURE ITEM.
UH, ARE THERE ANY MORE QUESTIONS OR COMMENTS ON ITEM FOUR, WHICH IS WHAT WE'RE ON NOW? OKAY.
I BELIEVE THAT TAKES US TO THE END OF OUR AGENDA TONIGHT.
UM, I WILL ENTERTAIN A MOTION IF THERE IS ONE.
PLEASE CALL FOR FUTURE ITEMS. OH, I'M SORRY.
[FUTURE AGENDA ITEMS]
IS FUTURE AGENDA ITEMS. UM, I'LL ASK STAFF LIAISON, WHAT DO WE HAVE FOR UPCOMING AGENDA ITEMS? THERE WAS A BRIEFING THAT WE MOVED FROM JUNE TO JULY.ONE MOMENT, I'M JUST PULLING IT UP.
SO OF COURSE THIS IS, UH, SUBJECT TO CHANGE, BUT, UM, CURRENTLY FOR THE RMC JULY MEETING IS THE GREEN BUILDING PROGRAM AND ENERGY REBATES, UH, THE TEXAS GAS SERVICE QUARTERLY UPDATE, THE BRIEFING ON HEAT, WATER PUMP, WATER HEATER, REBATES TO NEW BUILDERS, THE BRIEFING ON THE RETROFIT PROGRAM WITH REGARDS TO HOME PERFORMANCE WITH ENERGY STAR.
AND THEN THE CHAIR'S, ANNUAL INTER INTERNAL REVIEW AND REPORT, UH, COMMISSIONERS.
ANY OTHER ITEMS FOR CONSIDERATION FOR FUTURE MEETINGS? UM, WE'VE BEEN TOLD THAT THE NATURAL GAS FRANCHISE IS A PRIORITY.
UH, I HAVE PUT OFF, UH, A SECOND BRIEFING ON NATURAL GAS ISSUES BECAUSE TEXAS GAS SERVICE HAS NOT GIVEN ME COMPLETE INFORMATION, BUT I WILL, WHETHER THEY PROVIDE THAT OR NOT, I WOULD LIKE TO GIVE THIS, UH, EITHER IN JULY OR AUGUST.
AND THEN FOLLOWING THAT, I WOULD LIKE TO SCHEDULE A PUBLIC HEARING, UH, ON THEIR FRANCHISE.
COMMISSIONER STEIN, THANK YOU.
ON THAT SAME TOPIC, I WAS GOING TO PROPOSE THAT WE, UM, INVITE MS. NORTON TO COME BACK AND GIVE US, UH, HAVE A, HAVE A DISCUSSION WITH US ABOUT THE, THE FEASIBILITY OF A JOINT BRIEFING AND TO OUTLINE THE FRAMEWORK OF ISSUES THAT SHOULD BE COVERED IN THE FRANCHISE ON WHICH RMC AND PUBLIC INPUT WOULD BE USEFUL.
AND WHEN YOU SAY JOINT BRIEFING, YOU MEAN BETWEEN WELL, UH, UH, THEY, WE NEED THEM TO BRIEF US ON WHAT TOPICS WILL BE, WHAT ISSUES ARE AT STAKE IN THE FRANCHISE.
AND WE DID DISCUSS AT THE CONCLUSION OF MS. NORTON'S BRIEFING TO US THIS EVENING, THE POSSIBILITY OF DEVELOPING A JOINT HEARING.
SO I MAY HAVE MISSPOKEN EARLIER.
SO I'D LIKE TO REOPEN THAT ISSUE AND SEE IF WE CAN REACH A CONCLUSION AND START SCHEDULING IT SO THAT WE MEET OUR SENSE OF, OF, OF IMPORTANCE ENTERING INTO THIS ISSUE.
AND WE DON'T MESS UP THE CITY'S STAFF SCHEDULE TOO MUCH.
IN TERMS OF INPUT TO THE CITY.
ANY OTHER ITEMS? IF NOT, I'M LOOKING FOR A MOTION TO ADJOURN.
IF NOBODY SECONDS, THEN WE'LL NEVER LEAVE.
SECONDED BY COMMISSIONER LUKI MOVED BY COMMISSIONER SILVERSTEIN.
UM, ANY, ANY OPPOSITION THIS MEETING IS ADJOURNED AT 8:51 PM THANK YOU SO MUCH.