Aug 11, 2025 Electric Utility Commission

COMMISSIONER BRADEN HERE.

UH, COMMISSIONER REED IS ABSENT.

UH, COMMISSIONER RHODES.

I GUESS, UH, I'M HERE TOO.

I'M NOT ON THE LIST, BUT I'LL PUT MYSELF DOWN.

UM, WITH THAT, DO WE HAVE ANY PUBLIC COMMENTS TONIGHT? UH, AND JUST BEFORE IT LOOKS LIKE, UH, COMMISSIONER WHITE'S OH, SHE IS, NEEDS TO BE MOVED TO THE PANEL.

SHE'S TAUGHT, I THINK, IN THE PUBLIC.

I'LL ASK HER MOMENTARILY.

UH, WELL, THAT'LL MOVE US ON TO DISCUSSION AND ACTION ITEMS. ARE THERE, I I KNOW WE'RE GONNA PULL ITEM 14 BEFORE WE VOTE ON THE REST.

UM, ARE THERE ANY OTHER ITEMS THAT ANYONE WANTS TO DISCUSS? YES.

COMMISSIONER BRADEN.

UH, I HAD SOME QUESTION ABOUT ITEM NUMBER FIVE ON, UH, THE ELECTRICAL EFFICIENCY EVALUATION.

I HAD A QUESTION OR TWO ABOUT NUMBER FOUR.

I SKIPPED OVER THAT PART.

SO THAT'S FOUR, FIVE, AND 14.

ANYTHING ELSE? THEN LET'S, UH, GO AHEAD AND VOTE ON, WELL, LET'S DO THE APPROVAL OF THE MINUTES.

[APPROVAL OF MINUTES]

ANYBODY HAVE ANY COMMENTS ON THE MINUTES? ANYBODY WANT TO MOVE APPROVAL? I'LL MOVE APPROVAL.

HAVING TECHNICAL PROBLEMS. OKAY.

I SECOND.

SECOND.

UH, ALL THOSE IN FAVOR SAY AYE.

AYE.

COMMISSIONER BENAVIDES, YOU NEED TO BE TO BE ON CAMERA IN ORDER TO BE COUNTED AS A VOTE.

SORRY.

UP THERE YOU ARE.

AYE.

UM, SO WE'VE PULLED, UM, COMMISSIONER BEN, WE'VE PULLED ITEMS FOUR, FIVE, AND 14.

ARE THERE ANY ITEMS YOU'D LIKE TO DISCUSS, DISCUSS ON THE OTHER, OTHER ACTION ITEMS? UH, NO, I'M OKAY WITH THAT.

CONSIDER A MOTION TO APPROVE ITEMS 2, 3, 6, 7 8, 9, 10, 11, 12, AND 13.

SO LET'S GO AHEAD AND, UM,

[Items 2 - 3 & 6 - 13]

I'LL MOVE APPROVAL.

FOUR, WHICH IS THE RECOMMEND APPROVAL AUTHORIZING A CONTRACT FOR AN AMENDMENT TO A CONTRACT FOR CONTINUED SERVICE OF THE U PLAN NETWORK MANAGEMENT AND MODELING SOFTWARE.

SECOND.

ALL IN FAVOR SAY AYE.

[4. Recommend approval authorizing a contract for an amendment to a contract for continued service of the UPLAN network management and modeling software, support, and subscription services for Austin Energy with LGC Consulting, to increase the amount by $540,000 and to extend the term by two years for a revised total contract amount not to exceed $3,019,667. Funding: $270,000 is available in the Operating Budget of Austin Energy, funding for the remaining contract term is contingent upon available funding in future budgets.]

GOOD EVENING COMMISSIONERS.

MICHAEL LANGER, UH, VICE PRESIDENT ENERGY MARKET OPERATIONS RESOURCE PLANNING.

HAPPY TO ANSWER ANY QUESTIONS ABOUT IT.

HEY MICHAEL, I WAS JUST, UM, I WAS IN SOME OF THE, THE LANGUAGE THAT SAID SOMETHING ABOUT TRANSITIONING TO A NEW SYSTEM.

UM, AND KIND OF THE, UH, OR TRANSITIONING TO, UM, TRANSITION TO A NEW SYSTEM WILL DEPEND ON WHETHER THIS CLOUD-BASED SYSTEM, ARE WE MOVING AWAY FROM U PLAN, UM, OR IS TO A DIFFERENT MODEL? WE HAVE BEEN USING U PLAN FOR ABOUT 15 YEARS NOW.

UH, IT'S A PRODUCTION COST MODEL.

IT'S ONE THAT'S WIDELY USED AND ONE THAT ERCOT

[00:05:01]

ALSO USED FOR A NUMBER OF YEARS.

UH, WE WERE INTENDING ABOUT A YEAR AGO TO ISSUE AN RFP AND JUST RE CANVASS THE MARKET AND SEE WHAT OTHER TOOLS MIGHT BE AVAILABLE TO MAKE SURE YOU PLAN IS STILL THE PRODUCTION COST MODEL THAT WORKS BEST FOR US.

I THINK WHEN WE, WE MOVE FROM A RESOURCE PLAN UPDATE TO A FULL-BLOWN RESOURCE PLAN, UH, THAT UTILIZE SOME OF THE SAME RESOURCES THAT WOULD BE DOING THAT.

AND SO WE PUSHED THAT RFP OFF AND WE ARE, UH, THAT SOLICITATION OFF, WE'RE ACTUALLY GONNA BE RELEASING THAT I BELIEVE IN IN AUGUST.

AND SO WE'RE LOOKING FOR, UH, AN EXTENSION OF THE EXISTING CONTRACT THAT'S RUN OUT OF MONEY FOR, UH, FOR TWO YEARS OR UP TO TWO YEARS WHILE WE REEVALUATE THE MARKET AND THEN MAKE AN AWARD THROUGH A COMPETITIVE SOLICITATION AND THEN GO BACK TO COUNCIL FOR APPROVAL, WHICH MAY OR MAY NOT BE YOU PLAN DEPENDING ON THE PROPOSALS WE RECEIVE AND THE ANALYSIS DONE.

GOTCHA.

IS IS YOU PLAN THE ONLY MODEL THAT'S CURRENTLY USED FOR THAT OR DO WE USE MULTIPLE ONES? UH, SO WE, THAT IS OUR MAIN PRODUCTION COST MODEL.

SO IT'S MODELING EVERYTHING WITHIN THE ARRE SYSTEM, THE, UH, THE POWER LINES AND, AND, UM, OFFER CURVE FOR ALL THE POWER PLANTS.

WE ALSO USE A STOCHASTIC MODEL, WHICH IS ASCEND POWER SIM, UH, THAT WE USE, THAT LOOKS MORE AT, AT PRICING AND HISTORICAL CORRELATIONS, UH, AS WELL AS THE FORWARD MARKET TO DISPATCH UNITS.

AND THEN WE USE A POWER WORLD MORE FOR A POWER FLOW STUDIES.

SO WE USE MULTIPLE DIFFERENT TYPES OF MODELS TO GET SIMILAR ANSWERS, BUT THEY ALL HAVE KIND OF A DIFFERENT METHODOLOGY.

THAT, THAT WAS REALLY IT.

THANKS.

ANY OTHER QUESTIONS FROM ANY OTHER COMMISSIONERS? YES, AND LET ME, UH, JUST FOLLOW UP ON THAT.

DOES, DOES THE U PLAN WORK ADEQUATELY IN THE EVOLVING WORLD OF DISTRIBUTED ENERGY MANAGEMENT OR WAS IT REALLY GOOD FOR BASE, YOU KNOW, FOR, FOR POWER PLANT SYSTEMS AND IS THAT PART OF WHAT YOU'RE LOOKING AT FOR THE FUTURE? UH, U PLAN IS, IS A VERY GOOD PRODUCTION COST MODEL.

IT'S A LITTLE BIT MORE ON THE UTILITY SCALE SIDE THAN THAN DERS, BUT YOU CAN MODEL DERS IN IT AS WELL.

I THINK ONE OF THE, THE LIMITATIONS I PERSONALLY FEEL ABOUT U PLAN IS WEATHER HAS TO BE KNOWN IN ORDER FOR THE MODEL TO SOLVE.

AND SO WITHIN YOU PLAN FOR EVERY SINGLE HOUR, WE ALREADY KNOW WHAT THE WIND IS GONNA BE FOR EVERY WIND PLANT, UH, AND WHAT THE SOLAR RADIANCE IS GONNA BE FOR EVERY SOLAR PLANT AND YOU OPTIMIZE ALL THE OTHER UNITS AROUND THAT.

UH, AND IN REALITY, WE, WE DON'T SEE THAT ACTUALLY OCCUR.

AND SO I THINK, AS I THINK I'VE SAID BEFORE, I THINK IT UNDERESTIMATES THE VALUE OF BATTERIES AS WELL AS PEAKING UNITS AND I THINK IT OVERESTIMATES THE VALUE OF, OF SOLAR AND WIND BASED UPON THAT PERFECT KNOWLEDGE.

BUT YOU'RE, YOU'RE SAYING THAT NEW MODELS MAY DO BETTER AT, AT, UH, TAKING WEATHER FORECASTING IN RATHER THAN, THAN A FIXED ANSWER.

THERE, THERE MAY BE MODELS THAT, THAT DO A BIT OF A HYBRID APPROACH WHERE YOU CAN PUT IN SOME TYPE OF ERROR, BUT WE, WE'D LIKE TO CANVAS THE MARKET AND JUST LOOK AT ALL THE AVAILABLE OPTIONS TO SEE IF THERE'S ANY, UH, PRODUCTION COST MODELING THAT THAT MAY BE, UH, A BETTER FIT FOR US.

UH, OR IT VERY MAY WELL BE YOU PLAN AND, AND YOU PLAN WITH SOME ADDITIONAL MODULES THAN WE HAVE TODAY.

ANYONE ELSE? AND, UH, DOES ANYONE WANT TO MOVE APPROVAL? ALL MOVE APPROVAL OF ITEM FOUR? I'LL SECOND.

UH, MOTION BY COMMISSIONER GILLETTE AND, UH, SECOND BY COMMISSIONER BRADEN.

ALL IN FAVOR SAY AYE.

AYE.

THIS IS CYRUS.

I DON'T KNOW IF YOU CAN HEAR ME.

I'M ON A, I'M IN A CAR IN WEST TEXAS, BASICALLY .

UM, BUT HOPEFULLY YOU CAN HEAR ME.

WE CAN HEAR YOU, YEAH.

IS THAT AN I I'M IN A PARKING LOT IN .

I'M IN A PARKING LOT IN STERLING CITY.

IS THAT AN I THEN, ARE YOU, YOU, UH, VOTING FOR THIS MOTION? I HAVE.

I ENTHUSIASTICALLY WANT US TO USE U PLAN BECAUSE ERCOT USES IT AND IT MAKES SENSE.

DOESN'T MEAN WE SHOULDN'T LOOK AT OTHER THINGS, BUT I, I I THINK IT'S A GOOD IDEA.

MOTION PASSES IN UNANIM.

YES, GOOD EVENING COMMISSIONERS.

UM, ITEM FIVE.

[5. Recommend approval authorizing a contract for evaluation and reporting of energy efficiency programs for Austin Energy with LMPWorks d/b/a Brightline Group for an initial term of two years with up to three one-year extension options in an amount not to exceed $2,500,000. Funding: $250,000 is available in the Operating Budget of Austin Energy, funding for the remaining contract term is contingent upon available funding in future budgets.]

RICHARD GENESEE, VICE PRESIDENT OF CUSTOMER ENERGY SOLUTIONS.

THIS IS A CONTRACT FOR OUR EM AND V AND WE'RE ADDING AN R TO IT CONTRACTOR EVALUATION, MEASUREMENT VERIFICATION AND REPORTING.

IT'S A BIG CONTRACT FOR US BECAUSE IT IS ONE THAT IS GOING TO EVALUATE, UM, THE SUCCESS OF THE PORTFOLIO AND IDENTIFY ADDITIONAL OPPORTUNITIES FOR US TO COUNT ENERGY SAVINGS THAT WE MAY NOT

[00:10:01]

HAVE BEEN COUNTING.

AS YOU ALL KNOW, AS PART OF THE, UH, RESOURCE AND GENERATION PLAN, UH, THAT WERE VERY AGGRESSIVE GOALS THAT WE'RE COMMITTED TO, UH, FRANKLY, THAT WILL BE VERY CHALLENGING FOR US TO MEET.

AND WE'RE GONNA NEED ALL THE HELP THAT WE CAN GET IN TERMS OF A PROFESSIONAL THIRD PARTY THAT WILL HELP US IDENTIFY, UH, NON-ENERGY BENEFITS AS WELL AS OTHER THINGS, UH, THAT WE MAY BE DOING IN ORDER TO INCREASE THE AMOUNT OF ENERGY SAVINGS THAT WE GET TO COUNT.

ANOTHER IMPORTANT ASPECT OF THIS IS IN 2027 WHEN WE, UH, CEASE DOING JUST, UH, MEGAWATT MEASUREMENT AND MEGAWATT REDUCTION MEASUREMENT AND WE ADD GREENHOUSE GAS REDUCTION TO THE MIX THAT IS SUPPOSED TO OCCUR IN 2027.

AND THAT IS ALSO INCUMBENT UPON THIS CONTRACTOR TO HELP US TO AID US IN THAT, THAT CONVERSION OR THAT TRANSITION I SHOULD SAY.

SO, UH, BIG CONTRACT FOR US, AND I'M HERE TO TAKE ANY ADDITIONAL QUESTIONS YOU HAVE, UH, MR. GENESEE AL BRADEN, UM, IN, IN THE, IN THE GENERATION PLAN WORKING GROUP, UH, WE, WE ALWAYS HAVE A LOT OF DISCUSSION ABOUT, YOU KNOW, THIS AS TO WHETHER WE'RE DOING ENOUGH OR WHATEVER WE COULD DO BETTER.

AND IT IT'S ENCOURAGING TO SEE, UM, YOU ALL TRYING TO GET YOUR HANDS AROUND THIS WITH A THIRD PARTY.

UH, MY MY QUESTION WAS, WE JUST GOT THE, UH, REPORT FROM DNV ON MOST OF THESE ITEMS AND THEY HAD CONTRIBUTED TO THE LAST GENERATION PLAN.

UM, I'M WONDERING WAS THERE ANY DIFFERENCE IN THE REPORT THAT WE GOT OR IS THAT JUST A FINAL WRAP UP AND HOW, HOW DOES THAT WORK WITH DNV EITHER INFORM OR RELATE TO THIS WORK WITH BRIGHT LINE GROUP? YEAH, THAT GREAT QUESTION.

THE REPORT AND THE WORK FROM DNV WAS A MARKET POTENTIAL STUDY.

SO THAT WAS THERE TO HELP US, UH, IDENTIFY WHAT IS THE MARKET POTENTIAL OF SOLAR, OF ENERGY EFFICIENCY, OF DEMAND RESPONSE, UM, ET CETERA.

THIS IS ACTUALLY PROCESS, UH, PROGRAM AND IMPACT EVALUATION WHERE THEY'RE EVALUATING THE EFFECTIVENESS OF THE PORTFOLIO AS WELL AS MAPPING OUT ADDITIONAL WAYS IN WHICH WE, AND AND EVALUATING HOW WE ARE, UH, MEASURING THE PORTFOLIO.

SO ARE WE MEASURING EVERYTHING THAT WE SHOULD BE MEASURING AND ALSO THE, UH, RECONFIGURATION OF THE PORTFOLIO, MAYBE SUNSETTING PROGRAMS AND CREATING NEW PROGRAMS, MAYBE IDENTIFYING SOME SEGMENTS THAT WE'RE NOT TOUCHING.

ALL OF THAT IS INCUMBENT UPON THIS WORK.

IT BUILDS ON THE DNV WORK, BUT IT'S DISTINCTLY DIFFERENT FROM THE DNV WORK, IF THAT HELPS.

YEAH, THAT HELPS A LOT AND IT, IT HELPS I THINK, GIVE US SOME CONFIDENCE IN THE NUMBERS GOING FORWARD ABOUT WHERE WE HAVE DIFFERENT OPINIONS ON WHAT COULD HAPPEN.

UH, I'D LIKE TO SEE, I'D LIKE TO SEE THIS REPORT ACTUALLY AND SEE THAT WORK DONE, UM, WHEN WE TRANSITION, WHEN WE ADD A LOT OF ELECTRIFICATION.

UH, IT ALSO SOUNDS LIKE THIS WOULD HELP MODEL THAT IN TERMS OF GREENHOUSE GAS EMISSION BENEFITS.

'CAUSE YOU KNOW, THE, THE NET RESULT OF ELECTRIFICATION COULD BE THAT DEMAND GOES UP AND WE'RE TRYING TO MAKE DEMAND GO DOWN.

SO, YOU KNOW, UH, IT, IT WOULD BE GOOD TO HAVE A CONSULTANT WORKING ON THIS END OF IT.

YEAH, WE AGREE COMPLETELY AND THIS CONSULTANT IS VERY EXPERIENCED IN DOING PRECISELY THAT.

SO WE'RE, WE'RE EXCITED ABOUT BRINGING THEM ON BOARD.

ANY QUESTIONS, COMMENTS FROM ANYONE ELSE? HEY, UM, THIS IS, THIS IS CYRUS AND I JUST GONNA SAY IT'S, IT'S PRETTY, IT'S OFTEN STANDARD PRACTICE TO HAVE A THIRD PARTY EVALUATOR AND I THINK IT'S A GOOD, GOOD PRACTICE, UM, REGISTER.

I'M WONDERING WHEN YOU, UH, WHEN YOU HIRE THIS OUTFIT, UM, I ASSUME YOU'LL MAKE THEM AWARE OF THE EXISTING, UM, FOR THE STATE UTILITIES, THEY HAVE A THIRD PARTY EVALUATOR THAT HAS DONE A LOT OF ANALYSIS OF DIFFERENT PROGRAMS, UM, AND PROBABLY A MORE LIMITED WAY.

THEY'RE LIMITED REALLY THE KW AND KWH, THEY CAN'T REALLY LOOK AT GREENHOUSE GASES.

BUT TETRATECH DOES AN ANNUAL KIND OF, UM, EVALUATION AND, AND TECHNICAL REPORTS THAT GO INTO THE PROGRAMS AND HOW THEY COME UP WITH THE, YOU KNOW, THE SAVINGS THAT THEY ESTIMATE.

SO I WOULD HOPE THAT THIS, THIS THIRD PARTY WOULD JUST BE AWARE OF THAT.

'CAUSE SOME OF THOSE MAY, SOME OF THEM MAY BE RELEVANT, SOME OF THE PROGRAMS OF THE UTILITIES RUN MAY BE RELEVANT, OTHERS MAY NOT BE.

BUT JUST, UM, I WOULD ASSUME THAT THE PERSON, THE OUTFIT YOU'RE, YOU'RE HIRING WOULD, WOULD AVAIL THEMSELVES OF ALL THE OTHER, YOU KNOW, UM, ANALYSIS DONE IN TEXAS.

[00:15:01]

COMMISSIONER REED, YOUR, YOUR ASSUMPTION IS CORRECT AND THAT IS DEFINITELY PART OF OUR PLAN.

ANYONE ELSE? OKAY.

I WOULD, UH, I'LL MOVE APPROVAL OF ITEM FIVE.

I'LL SECOND.

14, WHICH IS DISCUSSION AND POSSIBLE ACTION REGARDING A RECOMMENDATION ON THE FISCAL YEAR 20 25, 20 26 AUSTIN ENERGY BUDGET.

SO AGAIN, WE HAVE A, UH, MOTION BY COMMISSIONER GILLETTE AND APPROVAL BY COMMISSIONER OR SECOND BY COMMISSIONER OMI.

ALL IN FAVOR? RAISE YOUR HAND.

UM, SO THEN MOVING ON TO ITEM

[14. Discussion and possible action regarding a recommendation on the FY 2025-2026 Austin Energy Budget. ]

I, I, GOOD AFTERNOON COMMISSIONERS.

RUSTY MANUS, ACTING DEPUTY GENERAL MANAGER.

I HAVE A VERY BRIEF BUDGET RECAP THAT JUST KIND OF REFRESHES EVERYBODY'S MEMORY.

Y'ALL HAVE ALL SEEN THESE SLIDES BEFORE AND SO I'LL GO THROUGH THEM FAIRLY QUICK.

JUST A DISCLAIMER THAT THE PRESENTATION, UH, CONTAINS FORECASTED INFORMATION.

WE USE REASONABLE ASSUMPTIONS, BUT ACTUAL RESULTS WILL VARY.

JUST A BRIEF HISTORY OF HOW AUSTIN ENERGY GOT TO WHERE WE ARE TODAY.

SO WE START IN 2019, WHICH WAS REALLY THE LAST TIME AUSTIN ENERGY HAS BEEN REALLY FINANCIALLY HEALTHY.

AUSTIN ENERGY ALSO HAS A FINANCIAL POLICY THAT SAYS WE WILL DO A REVENUE ADEQUACY REVIEW EVERY FIVE YEARS.

2019 WAS THAT YEAR.

AND SO WE DID A REVENUE ADEQUACY REVIEW THAT SAID, HEY, OUR, OUR REVENUES ARE JUST COVERING OUR COSTS.

WE'RE OKAY NOW, BUT WE KNOW COSTS ARE RISING, SO RATE CASE IS IMMINENT.

SO WE MOVE INTO 2020 AND THEN COVID HAPPENS.

SO INSTEAD OF ENTERING INTO A RATE CASE, WE ACTUALLY REDUCE RATES.

UM, WE PUT A MORATORIUM ON DISCONNECTIONS AND COLLECTIONS, COMMERCIAL REVENUES GO DOWN AND WE'RE NOW AT A POINT WHERE REVENUES DON'T RECOVER COSTS.

AND SO WE HAVE NEGATIVE MARGINS, BUT MORE IMPORTANTLY, WE USE CASH TO FUND THE DEFICIT.

IN OTHER WORDS, WE'RE LIVING OFF OUR SAVINGS BY 2021.

WE CAN'T PUT THE RATE CASE OFF ANY LONGER.

WE'RE START TO EVOLVE OUT OF COVID.

WE CONTINUE TO HAVE NEGATIVE MARGINS.

ONCE AGAIN, WE'RE LIVING OFF OUR, OUR SAVINGS, BUT 2021 BECOMES OUR TEST YEAR FOR THE RATE CASE.

WE MOVE INTO 2022.

WE, UH, WE START THE RATE CASE ONCE AGAIN, MAR UH, REVENUES ARE NOT ADEQUATE TO RECOVER COSTS AND WE'RE DOWNGRADED TO AA MINUS FROM AA BY 2023.

UM, CITY COUNCIL APPROVES OUR RATE CASE, BUT IT PROVES THAT BY, UH, IN DECEMBER, 2023, THE NEW RATES GO INTO EFFECT IN MARCH 23RD, 2023, ABOUT HALFWAY THROUGH THE FISCAL YEAR 2023.

ONCE AGAIN, REVENUES AREN'T ADEQUATE TO, UM, UH, COVER COSTS.

WE LIVE OFF OUR SAVINGS.

SO IF YOU'LL SEE, WE USED SAVINGS IN 20 21, 22, AND 23 IN 2023.

CITY COUNCIL GRANTED ABOUT A 5% OR INCREASE ABOUT $30 MILLION.

THAT $30 MILLION IS WHAT WE NEEDED BACK IN 2021.

AND THAT'S WHAT WE CALL REGULATORY LAG WHEN YOU NEEDED THE MONEY AND BY THE TIME YOU GOT THE MONEY RIGHT.

BUT TO COMPOUND ALL OF THIS IS THAT WE HIT A PERIOD OF INFLATION THAT WE HADN'T SEEN IN OVER 40 YEARS.

CIP INCREASE THE, UM, CONSUMER INFLATION INCREASED FROM 21 20 21 TO 2024 BY 15%.

BASICALLY SOMETHING THAT COST A HUNDRED BUCKS IN 2021 COST 115.

THE STUFF THAT WE BUY POLLS, TRANSFORMERS, WIRES DIDN'T GO UP 15% OVER THAT THREE YEAR PERIOD.

IT DOUBLED AND TRIPLED.

BUT BY 2024, UM, WE GOT AN ADDITIONAL 2% BASE RATE INCREASE THROUGH THE BUDGET PROCESS.

SO ALL THAT ALA INFLATION THAT ACCUMULATED OVER THAT THREE YEAR PERIOD, OUR RESPONSE TO BASE RATES WAS A 2% BASE RATE INCREASE.

CONSEQUENTLY, WE ARE CHASING THE INFLATED COSTS RIGHT NOW.

AND THE MAIN TAKEAWAY FROM THIS SLIDE IS TO SHOW HOW FEW OF THE COSTS ARE ACTUALLY UNDER OUR CONTROL.

SO WE HAVE A 2 BILLION, WE ARE PROPOSING A $2 BILLION BUDGET.

[00:20:01]

I WON'T READ ALL THE WAY AROUND, BUT IF YOU START HERE AT THE BIG, BIG BLUE POT, IT'S POWER SUPPLY.

IT'S WHAT WE HAVE TO BUY, GO INTO THE MARKET AND BUY FOR, TO, TO GIVE OUR CUSTOMERS, PROVIDE OUR CUSTOMERS WITH ELECTRICITY, TRANSMISSION, DEBT SERVICE, CITY GENERAL FUND TRANSFER.

ALL OF THOSE ARE, ARE BEYOND OUR CONTROL.

I CAN'T REDUCE THEM.

I CAN'T MITIGATE THEM.

THE ONE PIECE OF THE PUZZLE THAT I MIGHT HAVE SOME CONTROL OVER IS THE O AND M, AND THAT'S THE SUB SUB DONUT OVER THERE, IF YOU WILL.

BUT OVER HALF OF THAT IS PERSONNEL.

THE NEXT BIG SLICE IS CONTRACTUALS.

AND HALF OF THAT CONTRACTUALS IS OBLIGATED TO THREE THINGS.

THE FIRST ARE IT SYSTEMS THAT USE, THAT ARE USED TO SUPPORT, UH, OUR OVERALL OPERATIONS HERE? THINK OF SCADA OUR BILLING SYSTEM, OUR DISTRIBUTION MANAGEMENT SYSTEM, REALTIME TELEMETRY.

THE SECOND THING IS OUR, UH, ENERGY EFFICIENCY, UH, PROGRAMS AND REBATES.

AND THE THIRD IS TREE TRIMMING.

SO $2 BILLION BUDGET, NOT A LOT OF ROOM TO CUT.

THESE ARE THE COST DRIVERS FOR FISCAL YEAR 2026.

I WON'T READ THOSE, BUT I WANNA POINT OUT ONE THING.

IF YOU LOOK AT THE COST OF LIVING INCREASE, THE FIRST BULLET POINT, THAT'S $15 MILLION, AND THEN YOU MOVE OVER TO THE LOWER RIGHT HAND UNDER, UH, TRANSFERS AND NON-NUCLEAR, YOU SEE THE INCREASE IN DEBT SERVICE AT 19 MILLION AND THE INCREASE TO CITY GENERAL FUND AT 14 MILLION.

THOSE THREE COMBINED MORE THAN OFFSET THE 5% BASE RATE INCREASE WE'RE REQUESTING.

THAT IN PART IS WHY, UH, OUR 2026 RECOMMENDATION STILL HAS US COMING UP $43 MILLION SHORT OF EXPENSES.

SO A QUESTION BEFORE YOU MOVE ON, I'M SORRY, COMMISSIONER CA, I HAD A QUESTION ON THAT LAST SLIDE.

IF OKAY, IF YOU DON'T MIND.

UM, I SEE THE, ON THE LEFT HAND SIDE, THE SECOND TO LAST AND THIRD FROM LAST BULLET.

I'M CURIOUS ABOUT BOTH OF THOSE, THOSE INCREASED COST RELATED TO THOSE POWER PLANTS.

CAN YOU ELABORATE ON THOSE AT ALL? OH, UH, INCREASE TO STP AND FPP, IS THAT WHAT I HEARD YOU SAY? YES, THAT'S THE FIRST ONE.

THAT INCREASE IS FOR PLAN MAINTENANCE TO DO WHAT? OH, IT'S JUST TO MAIN MAINTAIN THE GENERATORS.

IT'S, IT'S NOT TO EXTEND THEIR LIFE, UH, BUT TO MAKE SURE THAT THEY'RE, UH, UH, THAT THEY'RE RELIABLE WHEN WE NEED 'EM.

AND WHAT WAS YOUR SECOND ONE? THE NARDO, THE BULLET POINT RATE BELOW IT.

THE BIOMASS PLANT? YEAH.

SO WE HAVE, UH, A THIRD PARTY THAT OPERATES THAT AND IT'S JUST A, UH, UH, A CONTRACTUAL INCREASE IN THEIR, THEIR OPERATING CONTRACT.

HOW I'M, I'M CURIOUS ABOUT THAT ONE BECAUSE MY UNDERSTANDING WAS IT WASN'T USED THAT OFTEN.

I MEAN, ARE WE AT A POINT WHERE, I MEAN, IS IT MAKING MONEY OVERALL? WE ARE DISPATCHING THAT.

WELL, RIGHT, BUT I'M, IS IT MAKING MONEY ON AVERAGE? YEAH, I, I, YEAH, ABSOLUTELY.

LISA MARTIN, CHIEF OPERATING OFFICER, UM, COMMISSIONER WHITE.

WE WOULDN'T, WOULDN'T DISPATCH IT IF WE DIDN'T THINK, THINK WE WERE MAKING MONEY ON IT.

WELL, I'M NOT ASKING IF, OBVIOUSLY YOU WOULDN'T DISPATCH IT IF IT WASN'T, THE MARGINAL COST WAS NOT BENEFICIAL.

BUT I AM WONDERING ABOUT THE ALL IN COST ON A, YOU KNOW, AVERAGE ANNUAL BASIS, BOTH THE, YOU KNOW, VARIABLE AND THE FIXED COST.

YOU KNOW, IS THAT PLANT MAKING MONEY OR LOSING MONEY? UH, I'LL, I'LL DEFER TO, TO OUR CHIEF OPERATING OFFICER.

GOOD EVENING.

WHEN WE CONSIDER THE COST TO DISPATCH UNITS, IT DOES INCLUDE ALL IN.

SO IT'S BOTH THE YOU, IT'S ALL THE OVERHEAD.

IT IS, EVERYTHING TOGETHER GOES INTO THE PRODUCTION COST.

AND ULTIMATELY WE'RE NOT MAKING MONEY.

JUST A REMINDER, WE'RE ULTIMATELY REDUCING COSTS FOR OUR CUSTOMERS.

DISPATCHED, UH, THEY ARE NET BENEFITS FOR ULTIMATELY REDUCING COST FOR OUR CUSTOMERS.

YOU GET WHAT I'M ASKING ABOUT THOUGH? IS IT A NET BENEFIT TO THE UTILITY? YES.

FINANCIALLY, YES.

O OKAY.

AND I MEAN, I ASSUME THE SAME IS TRUE FOR FPP, BUT IS IT FOR, UM, THE, THE TWO CO-OWNED UNITS AS WELL? UM, YES.

WHEN THEY ARE

[00:25:01]

UM, OF COURSE, YOU KNOW, WE APPLY THE REACH ADDER FOR, UH, FAYETTE POWER PROJECT AS WELL.

WELL, JUST, I JUST WANNA MAKE SURE THAT WE'RE, THAT YOU'RE ANSWERING THE QUESTION THAT I'M ASKING, I'M NOT ASKING ABOUT WHEN THEY'RE DISPATCHED.

I'M ASKING LIKE ALL THE COSTS AND ALL THE EARNINGS IN A YEAR, WHICH IS MORE, UH, ON, ON, IF I'M TAKING ALL THE COSTS AND ALL THE REVENUES OVER THE COURSE OF THE YEAR, I THINK I WOULD HAVE TO GO LOOK AT THAT SPECIFIC NUMBER TO BE ABLE TO ANSWER FOR YOU.

BUT FUNDAMENTALLY, THEY'RE ONLY RUNNING WHEN THE EARNINGS EXCEED THE COST.

SO YEAH, I, I WOULD APPRECIATE A FOLLOW UP FOR ALL THREE OF THOSE PLANTS, UM, THE ALL, YOU KNOW, INDIVIDUALLY.

UM, IF, IF YOU COULD GET THAT TO US, UM, I'D APPRECIATE IT.

THANKS.

OKAY, THANK YOU.

ANY OTHER QUESTIONS ON THIS SLIDE? NEXT SLIDE PLEASE.

SO, UNDER CURRENT RATES, THIS IS WHAT WE LOOK AT, LOOK LIKE.

WE'RE UNDER CURRENT.

UNDER THE CURRENT RATES WE'RE, WE HAVE $130 MILLION DEFICIT IN 2026.

THE, UH, GOLD BARS REPRESENT COSTS.

THE DOTTED, UH, ORANGE LINE REPRESENTS REVENUES.

SO WE'RE SHORT 130, UH, 1 MILLION IN 2026, AND WE STAY DEFICIENT OVER THE NEXT FIVE YEARS.

BUT WE HAVE A PLAN TO FIX THAT.

IT'S WHAT WE CALL OUR FIVE YEAR PLAN.

AND IT'S THREE COMPONENTS.

ONE IS, FIRST AND FOREMOST, IT'S ALWAYS PRUDENT COST MANAGEMENT.

BUT KNOW THAT EVEN WHEN WE CALL CUT COSTS, WE DON'T REALLY CUT 'EM, WE JUST DEFER THEM AT SOME POINT IN TIME.

WE HAVE TO MAKE THE INVESTMENTS NECESSARY INTO THE SYSTEM.

THE SECOND IS, IS WE ARE PROPOSING A 5% BASE RATE INCREASE, BUT THIS IS OFFSET BY A 23% REDUCTION IN POWER SUPPLY, UH, COST.

THE NET EFFECT OF THIS IS THAT OUR CUSTOMER BILLS ARE GOING DOWN BY ABOUT $5 WHEN YOU COMPARE OUR PROPOSAL TO WHAT THEY PAID THIS TIME LAST YEAR.

AND THEN FINALLY, WE'RE RECO, WE'RE REQUESTING TO RECOVER, UH, THE GFT AND THE REGULATORY EES AND THE SALARY RATES.

SO OUR FIVE YEAR PLAN STARTS IN 26, REQUEST A 5% BASE RATE INCREASE.

WE ARE PROPOSING A 5% BASE RATE INCREASE EVERY YEAR FOR THE NEXT FIVE YEARS.

IF WE'RE SUCCESSFUL, THE DOTTED ORANGE LINE BECOMES THE BLUE LINE.

BY 2027, WE'RE BROKE, WE BREAK EVEN.

AND BY 2028, WE RECOVER THE DEFICIT THAT WE INCURRED IN 2026, THAT $43 MILLION.

SO EVEN WITH THIS PROPOSAL IN 2026 WILL STILL BE $43 MILLION SHORT.

NEXT SLIDE, PLEASE.

THIS IS THE AVERAGE, UH, THE IMPACT TO OUR, UH, RESIDENTIAL BILL.

YOU CAN SEE, UM, THE INCREASE IN BASE RATES, THE REDUCTION IN POWER SUPPLY, THE CHANGES TO THE OTHER PASS THROUGHS.

AT THE END OF THE DAY, THE MONTHLY BILL IMPACT IS $4 AND 89 CENTS.

IF YOU'RE A CUP CAP, UH, CAP CUSTOMER, IT'S NEARLY $7 IN SAVINGS.

AND TO PUT IT INTO PERSPECTIVE OF, OF WHAT OTHER CUSTOMERS AND OTHER SYSTEMS ARE PAYING.

WITH OUR PROPOSAL, WE, AUSTIN ENERGY'S CUSTOMERS PAY ON AVERAGE, UH, $117.

YOU CAN SEE THESE ARE THE UTILITIES CLOSEST AROUND US.

SAN ANTONIO'S AT 1 49 P C'S AT 1 53 BLUE BARN, 1 42, AND GEORGETOWN, WHICH IS CLOSEST TO US.

AND STILL $12 HIGHER OR ABOUT 10%, NOT QUITE, IS AT 1 29.

YES, UH, RUSTY, I'M, I'M STILL, I'M STILL NOT UNDERSTANDING THE MATH ON HOW THE BASE RATE GOES UP AND THE PSA GOES DOWN AND WE SAVE MONEY.

I ALSO WANNA REMIND THE COUNCIL, UH, THE, THE COMMISSION THAT, THAT THE BUDGET PROCESS IN AND OF ITSELF PROVIDES A PROTOCOL FOR THE EUC TO CHIME IN ON OUR BUDGET.

AND THAT OCCURRED BACK IN MARCH OF 2025.

AND THE EUC MADE TWO RECOMMENDATIONS.

FIRST IS TO ADD FULL-TIME, UH, EMPLOYEES TO IMPLEMENT THE CES GOALS AND RESOURCE GEN PLAN.

WE DID THAT, WE ADDED FIVE, FOUR OF THEM WERE CONVERSIONS OF CONTRACTORS, ONE NEW FTE, AND WE INCREASED, UH, THE BUDGET BY $3.7 MILLION.

AND THEN THE SECOND ONE WAS TO ADD FTES FOR OUTREACH, IMPLEMENTATION AND ENFORCEMENT OF NEW ENERGY CODE.

WE WERE ALREADY DOING THAT.

WE DIDN'T NEED ADDITIONAL CORE UH, RESOURCES.

NEXT SLIDE, PLEASE.

SO WE ARE CUSTOMER DRIVEN AND COMMUNITY FOCUSED.

ANY OTHER QUESTIONS?

[00:30:01]

UH, OKAY.

CAN YOU GO BACK SLIDE.

COULD YOU GO BACK ON THOSE SLIDES WHERE YOU, SO I MEAN, I LIKE THE IDEA, BUT IT JUST TOOK, SO WE HAVE, I CAN'T KEEP MY HEAD AROUND IT.

WE HAVE DIFFERENT RATES THAT PAY FOR DIFFERENT COSTS.

THINK ABOUT IT LIKE THAT.

SO BASE RATES PAY FOR THINGS LIKE, LET ME BACK UP AND SAY THIS ONE MORE TIME PLEASE.

ALL RIGHT, THANK YOU.

YEAH, HERE WE GO.

SO LET, LEMME SAY THIS, WE ARE A COST RECOVERY UTILITY.

ALL WE DO IS SET RATES TO RECOVER COSTS.

AND, AND I SHOULD HAVE BROUGHT THIS UP WHEN WE HAD QUESTIONS ABOUT THE POWER PLANTS MAKING MONEY.

THEY DON'T MAKE, WE DON'T MAKE ANYTHING.

IT ALL GOES BACK TO THE CUSTOMER IN SOME FORM OR FASHION.

IF, IF OUR GENERATORS SELL INTO THE MARKET AND THEY MAKE MONEY, WE PASS THAT BACK TO THE CUSTOMER THROUGH THE POWER SUPPLY ADJUSTMENT, RIGHT? SO WE HAVE RATES THAT COLLECT DIFFERENT COSTS, BASE RATES, FOR EXAMPLE, COLLECT MOST OF THE STUFF YOU SEE SALARIES, UM, POLES, WIRES, UH, TRANSFORMERS, DEBT SERVICE, GFTO AND M, THOSE TYPES OF THINGS.

THE POWER SUPPLY ADJUSTMENT RATE ONLY RECOVERS ONE THING, AND THAT'S POWER.

THE NET POWER SUPPLY COSTS.

THAT'S THE COST OF THE, UM, FUEL TO RUN OUR GENERATORS.

UH, THE PURCHASE PRICE OF OUR CONTRACTED, UM, UH, RESOURCES LIKE OUR, OUR RENEWABLE PPAS, UH, ERCOT PURCHASES, UH, HEDGING COSTS.

AND, AND WHEN WE DISPATCH THAT ENERGY INTO THE MARKET AND WE SELL IT, WE TAKE THOSE REVENUES AND WE NET IT AGAINST IT.

AND THAT POWER SUPPLY ADJUSTMENT RECOVERS ONLY THOSE COSTS.

SO I CAN'T COLLECT THROUGH THE POWER SUPPLY ADJUSTMENT TO PAY DEBT SERVICE.

I CAN'T USE POWER SUPPLY ADJUSTMENT REVENUE TO PAY A GFT.

THOSE ONLY GO TO, UH, UH, TO PAY POWER SUPPLY COSTS.

SO WHAT YOU'RE SEEING, THE NET EFFECT IS, IS THAT THE COSTS THAT ARE RECOVERED BY BASE RATES, O AND M DEBT SERVICE GFT, THEY'RE RECOVERED BY BASE RATES.

SO I RAISE BASE RATES, POWER SUPPLY COSTS HAVE COME DOWN.

SO I LOWER THAT BILL, SO I LOWER THAT RATE THAT OUR, OUR ENTIRE ENERGY COST IS, IS GOING DOWN FROM 45 TO $35.

IS IS YES.

THAT AND, AND THAT PAY FOR EVERYTHING ELSE BASICALLY IN THE, IN THE PLAN.

THAT'S, THAT'S CORRECT.

THE, THE, WHAT WE ARE PROPOSING, THE RATES WE'RE PROPOSING ARE, AND, AND, AND HAVE ALREADY SEEN, HAVE ALREADY REDUCED THE AVERAGE BILL BY $10.

BUT IS THAT REALISTIC THAT THE POWER COST TO US WILL, WILL STAY AT THAT LEVEL? WE ARE, WE ARE SIMPLY COST RECOVERY.

THEY COULD GO UP, THEY COULD GO DOWN.

IN THIS INSTANCE THEY'VE GONE DOWN.

I, BUT WE'RE, WE'RE PROJECTING THAT THEY'LL BE DOWN $10 IN, IN, IN THE, WE HAVE FOLLOWING YEAR.

WE HAVE ALREADY, THIS IS A COMPARISON TO A BILL A YEAR AGO, THIS TIME LAST YEAR, WE HAVE ALREADY REDUCED THE PSA FIVE TIMES THIS YEAR.

AND EACH REDUCTION WAS A 5% REDUCTION.

SO WE HAVE ALREADY REDUCED THE POWER SUPPLY COSTS BY 23% THIS YEAR ALREADY.

SO THAT $10 REDUCTION THAT'S LOCKED IN AND, AND THAT WOULD HAVE TO REFLECT LOWER ENERGY COST IN THE ERCOT MARKET IS CORRECT.

IS THAT CORRECT? YES.

AND THOSE ARE PROJECTED TO MAINTAIN AT THAT LEVEL GOING FORWARD.

WE, WE DO THINK THAT, WELL, THE FORECAST ASSUMES A NORMALIZED WEATHER AND SO YES.

SO RELATIVELY STABLE PSA COSTS, WAIT, I'M ALL IN FAVOR OF THIS.

I'M JUST TRYING TO MAKE SURE I UNDER I THAT IT'S, THAT IT'S SUPPORTED BY WHAT THE MARKET IS DOING, RIGHT? SO THERE IS NO MYSTERY IN THE REDUCTION TO THE PSA THAT HAS OCCURRED ALREADY.

HOW, HOW MUCH OF THAT LIKE INTO LIKE HOW FAR INTO THE FUTURE CAN WE SEE, OR HOW FAR INTO THE FUTURE CAN WE SEE? WHAT PERCENTAGE OF THAT, LIKE, DO WE, DO WE KNOW WHAT 50% OF THE PSA IS GONNA BE AND THEN THE OTHER 50% IS BASED ON HOW HOT IT'S GONNA GET AND PRICES IN ERCOT AND THINGS LIKE THAT.

DO YOU HAVE A, IS IS THERE A, A RULE THAT YOU, YOU SAID, YOU MENTIONED THINGS LIKE IN THE PSA, THERE'S HEDGING, THERE'S ALL KINDS OF STUFF.

THERE'S LIKE, LIKE FUEL.

LIKE I'M, I'M ASSUMING WE HAVE SOME CONTRACTS OF VARIOUS LINKS AND THINGS LIKE THAT.

[00:35:01]

IS THERE, WE HAVE A BREAKDOWN OF THAT.

LIKE HOW CERTAIN ARE WE, SO, UM, THERE, THERE IS NO CERTAINTY, RIGHT? BECAUSE THESE ARE, THERE'S, IT'S, IT'S MARKET MARKET EXPOSURE, RIGHT? THINGS COULD, UM, COST COULD STAY RELATIVELY STABLE, BUT YOU COULD HAVE A GENERATOR GO DOWN SOMEPLACE IN ERCOT THAT COULD UPSET THAT MARKET BECAUSE IT'S NOT, IT'S, IT'S A ERCOT WIDE MARKET.

YOU COULD HAVE A TRANSMISSION LINE BURNED DOWN THAT, AND IT, AND IT DOESN'T HAVE TO BE AUSTIN ENERGIES.

SO QUIRKS LIKE THAT CAN AND DO HAPPEN THAT CAN UPSET THE MARKET.

AND THEN SOMETIMES THEY DON'T.

AND IT ALSO DEPENDS ON HOW LONG THE DURATION IS.

YOU COULD SEE PI PRICE SPIKES, BUT OVER THE COURSE OF THE YEAR, UM, IT DEPENDS ON HOW MATERIAL THEY ARE.

BUT, BUT OUR GOAL IS TO KEEP, UH, NICE STABLE PRICES.

WHAT WE, WHAT WE DON'T INTEND TO DO IS WHIP OUR CUSTOMERS.

IF THERE IS A PRICE SPIKE, OUR INTENTION IS NOT TO PASS THAT ALONG RIGHT AWAY.

WE'D LIKE, WE'D LIKE NICE STABLE PRICES FOR OUR CUSTOMERS.

YEAH, NO, THAT MAKES SENSE.

I WAS JUST CURIOUS LIKE HOW MUCH OF THAT, OF THE PSA IS PURELY EXPOSED TO THE MARKET VERSUS THINGS THAT WE CAN, WE HAVE LOCKED IN, LIKE FUEL PRICES FOR THE, THE VARIOUS POWER PLANTS WE HAVE.

SO CERTAIN THOSE COSTS, UM, I SUSPECT ARE STABLE.

BUT WHAT YOU DON'T, WHAT YOU DON'T GET IS WHAT ARE THE POWER MARKET? WHAT DO THE POWER MARKETS LOOK LIKE WHEN WE DISPATCH? SO ALL OF THOSE COSTS ARE OFFSET BY THE REVENUES THAT COME IN.

IF WE DID NOT HAVE THOSE DISPATCHABLE AND CONTRACTUAL, UH, ASSETS, RIGHT? IF WE JUST WENT INTO ERCOT AND BOUGHT THE MARKET, THERE'D PROBABLY BE 50 TO A HUNDRED MILLION DOLLARS PREMIUM ON TOP OF THAT.

BUT THOSE ASSETS ARE USED AS HEDGES AND, AND, AND SO THE MARKET IS VOLATILE ENOUGH THAT I CAN'T ACCURATELY TELL YOU EVERY 15 MINUTES WHAT THE PRICE IS GONNA BE FOR THE NEXT YEAR.

NO, NO.

AND WE'VE ESTABLISHED THAT WE ONLY DISPATCH THE POWER PLANTS WOULD BE MAKE MONEY, UM, WHICH IS GREAT.

UM, YEAH, I MAYBE I'LL FOLLOW UP ON IT.

I'M JUST CURIOUS WHAT THE, THE BREAKDOWN IS OF, OF HOW FAR WE CAN SEE INTO THE FUTURE WITH THAT VERSUS LIKE WHAT IS PURELY UP TO THE MARKET.

AND MAYBE YOU CAN'T ANSWER THAT AND THAT'S FINE.

I'M JUST, WHAT'S JUST ASKING? I DON'T KNOW THAT I HAVE ANY MORE INSIGHT TO THAT.

I, I, IT, IT'S, IT'S, I I, LOOK, MY PERSPECTIVE IS, IT'S AKIN TO THE STOCK MARKET, RIGHT? SO WHAT'S THE STOCK MARKET GONNA BE TOMORROW? WHAT ARE, ARE YOUR STOCKS GONNA BE WORTH MORE OR LESS? SO IT'S THAT KIND.

IT'S A MARKET.

IS THERE A, A SIGNIFICANT, UH, STABILITY FACTOR WITH OUR POWER PURCHASE AGREEMENTS ON RENEWABLE ENERGY THOUGH? DO, DO THEY CONTRIBUTE TO KNOWING AT LEAST WHAT A BIG PORTION OF OUR ENERGY IS GONNA BE IN THE NEXT FIVE YEARS? WE, WE KNOW THE COST SIDE OF IT.

YES, I KNOW WE YOU'RE TRUE.

YOU'RE ABSOLUTELY RIGHT.

UM, I DON'T KNOW HOW OFTEN THOSE CONTRACTUAL, UH, ASSETS WILL DISPATCH AND I DON'T KNOW WHAT THE MARKET WILL PAY ME FOR THOSE CONTRACTUAL ASSETS.

SO I CAN BUY, UH, AND I'M JUST MAKING THESE NUMBERS UP, RIGHT? SO I CAN SAY, SAY THAT I HAVE A RENEWABLE THAT I'M BUYING, UH, AT $30 A MEGAWATT MEGAWATT HOUR.

I DON'T KNOW WHAT THE MARKET IS WHEN THAT DISPATCH IS.

IT MIGHT BE $50 OR IT MIGHT BE FIVE.

SO I'M PAYING 30 AND I'M GETTING FIVE AND I HAVE A NET COST OF 25, RIGHT? I'M NOT GETTING MUCH BANG FOR MY BUCK THERE.

BUT IF THAT MARKET'S A HUNDRED AND I ONLY PAID 30 FOR IT, I'M TAKING THAT 70 AND I'M CREDITING IT BACK TO OUR CUSTOMER'S POWER BILL.

SO THINK OF AUSTIN ENERGY AS JUST ONE BIG PASS THROUGH.

WE TAKE A DOLLAR IN, WE PAY OUR BILLS, AND THAT'S IT.

, WHICH IS, WHICH IS WHY IT'S SO IMPORTANT THAT WE, THAT OUR REVENUES KEEP PACE WITH COST BECAUSE IF THEY DON'T, YOU LIVE OFF OF SAVINGS AND THEN EVENTUALLY YOU HAVE TO COME IN AND IT CREATES BIG RAKE SHOCKS, RIGHT? BECAUSE NOT ONLY DO I HAVE TO COVER TODAY'S COST, I GOTTA RECOVER ALL THE CASH THAT I SPENT OVER THE LAST THREE OR FOUR YEARS TO GET MY CASH POSITION BACK.

AND ALL OF THE WIND AND SOLAR CONTRACTS ARE INCLUDED IN THE PSA, NOT IN THE BASEMENTS.

RIGHT?

[00:40:02]

SO, YES.

SO IF I HEARD YOU, IF I HEARD YOU CORRECTLY, YOU SAID, ARE THE RENEWABLE CONTRACTS INCLUDED IN THE PSA, IS THAT CORRECT? WELL, I SAID WIND AND I SAID WIND AND SOLAR SPECIFICALLY, BECAUSE I ALREADY SAW THAT THE BIOMASS PLANT, WHICH, YOU KNOW, MAY OR MAY NOT BE CONSIDERED RENEWABLE, I SUPPOSE, BUT, UM, YEAH.

BUT WIND AND SOLAR ARE ALL IN THE PSA.

THAT'S CORRECT.

WELL, I THINK THAT'S IN, IN SOME RESPECTS, A REALLY GOOD NEWS STORY FOR US.

YES, IT IS A GOOD NEWS STORY.

I MEAN, WE'RE, WE'RE ASKING FOR A RATING INCREASE, BUT OVERALL THE BILL IS GOING DOWN.

THIS, THIS IS GOOD NEWS, RIGHT? IF YOU FOLLOWED THE CITY BUDGET, WE ONLY WE'RE THE ONLY UTILITY THAT HAS A REDUCTION IN THEIR BILL.

THIS IS GOOD NEWS.

IS THERE ANYTHING ELSE? ANY OTHER QUESTIONS? OH, I WAS JUST IN MAY, MAYBE IN, IN FUTURE PRESENTATIONS THAT, BECAUSE I DIDN'T REALIZE HOW DIFFERENT THINGS WERE IN DIFFERENT BUCKETS, LIKE THE PSA VERSUS THE BASE RATE AND WHAT EACH OF THOSE PAY FOR.

UM, B MAYBE WE COULD JUST MAKE THAT A BIT MORE EXPLICIT THAT IT WOULD MAKE, MAKE, MAKES IT A LITTLE BIT EASIER TO UNDERSTAND.

WHAT'S, WE CAN CERTAINLY DO THAT.

I THINK I HAVE A SLIDE FOR THAT, SO, BUT I DON'T HAVE IT HERE TODAY.

NO PROBLEM.

ANYTHING ELSE? THANK YOU.

UH, RUSTY, JUST THANK YOU FOR THE PRESENTATION AND UM, ALSO WANTED TO RECOGNIZE, UH, THANK YOU FOR THE INCREASE IN THE ENERGY AND EFFICIENCY REBATES AND THE, DEFINITELY THE INCREASE IN STAFF TO HELP GET THOSE, GET THOSE OUT.

THAT'S MUCH APPRECIATED.

I THINK I DON'T PERSONALLY HAVE A PROBLEM, UH, YOU KNOW, WITH, WITH THE INCREASE OR I GUESS THE OVERALL DECREASE WITH THE PSA.

UM, THE CONCERN THAT I RAISED LAST MONTH AND I CONTINUE TO HAVE IS MORE ON THE, UM, THE, THE WAY YOU'RE DOING THE INCREASE, UH, RATHER THAN JUST INCREASING, YOU KNOW, THE ENERGY COST INCREASING THE, THE, UH, THE MONTHLY CUSTOMER, UH, FEE, WHICH IS MORE OF A RATE DESIGN ISSUE.

UM, AND SO I THINK THAT'S, THAT'S WHERE I'M A LITTLE UNCOMFORTABLE BECAUSE, YOU KNOW, WE WENT THROUGH A RATE CASE AND THE, AND THE COUNCIL CAME UP WITH A, YOU KNOW, A CERTAIN WAY TO DESIGN THE RATE FOR, FOR RESIDENTIAL.

I'M TALKING ABOUT FOR RESIDENTIAL.

SO THAT MY, MY DISCOMFORT IS REALLY WITH THAT, NOT WITH THE INCREASE ITSELF.

AND I, I, YOU KNOW, I THINK I ALSO EXPRESSED LAST MONTH SHARE THAT SAME CONCERN.

UM, THAT SAID, I, I DO SEE A FEW THINGS, YOU KNOW, THAT, UM, MIGHT BEAR SOME ADDITIONAL SCRUTINY, UM, IN TERMS OF THOSE COST INCREASES.

AND THAT IS THE VALUE OF A RATE CASE IS THAT YOU GET VARIOUS PARTIES WITH DIFFERENT EXPERTS, UM, YOU KNOW, IN WITH THE ABILITY TO, TO DIG IN AND LOOK AT THE PRUDENCE OF VARIOUS INVESTMENTS AND, AND COST.

AND I THINK THAT'S ULTIMATELY THE BENEFIT OF, OF ALL THE CUSTOMERS.

UM, THAT SAID, YOU KNOW, MY PRIMARY CONCERN IS WITH THE, THE RATE DESIGN.

BUT, UM, YOU KNOW, I SEE WHAT, WHAT YOU'RE DESCRIBING HERE WITH THIS REGULATORY LAG AND THE, YOU KNOW, PRETTY LENGTHY TIME, UM, BETWEEN RATE CASES.

AND TO ME, I THINK LIKE, WELL, MAYBE THAT NEEDS TO HAPPEN MORE OFTEN SO THAT IT'S NOT JUST, UM, YOU KNOW, A CHOICE BETWEEN AUSTIN ENERGY BEING SORT OR DOING THESE KIND OF, UM, YOU KNOW, THESE INCREASES THAT DON'T HAVE THAT, THAT, YOU KNOW, ABILITY FOR PARTIES TO REALLY ENGAGE IN A MEANINGFUL WAY.

I DON'T THINK WE'RE GONNA DO ANYTHING.

THERE'S NOTHING REALLY TO BE DONE ABOUT THAT AT THIS JUNCTURE.

UM, BUT I THINK IT'S SOMETHING THAT SHOULD BE CONSIDERED FOR, YOU KNOW, AFTER THE NEXT RATE CASE, WHICH I ASSUME THEY ALL ARE ALREADY, YOU KNOW, PLANNING FOR, UM, THAT MAYBE IT NEEDS TO BE ON LIKE A THREE YEAR SCHEDULE INSTEAD OF A FIVE YEAR SCHEDULE TO AVOID THIS PROBLEM.

BUT TYRUS AND I DID, UM, PUT TOGETHER A RECOMMENDATION ON THIS.

UM, AND I GUESS IF I COULD, IT LOOKS LIKE I CAN SHARE MY SCREEN.

SO, UM, HERE, IF YOU DON'T MIND, IS IT OKAY IF I SHARE MY SCREEN TO, SO EVERYBODY CAN SEE WHAT WE SURE.

PUT TOGETHER? THANK YOU.

AND KABA, NIKKI HUFF, UH, I DID DISTRIBUTE HARD COPIES TO THOSE WHO ARE PRESENT AND I ALSO SENT OUT AN EMAIL WITH YOUR LATE BACKUP FOR AN ELECTRONIC COPY AS WELL.

THANK YOU SO MUCH, NIKKI.

[00:45:01]

I APPRECIATE THAT.

SO I THINK Y'ALL CAN SEE THIS.

SO WE DID THIS IN LIKE, NOT IN RESOLUTION STYLE, BUT IN LIKE THE OTHER KIND OF RECOMMENDATION STYLE.

SO IT JUST HAS THIS BRIEF RECOMMENDATION HERE THAT, YOU KNOW, ESSENTIALLY GETS TO WHAT SARAH AND I ARE RAISING ABOUT THE, UM, FIXED MONTHLY CUSTOMER CHARGE, UM, RECOMMENDING THAT THAT NOT BE INCREASED.

UM, AND THAT INSTEAD THE, UM, THAT THE INCREASE, UH, SHOULD BE COME FROM AN INCREASE IN VOLUMETRIC RATES.

SO JUST TO BE CLEAR, WE ARE NOT, WE ARE NOT MAKING A RECOMMENDATION TO CITY COUNCIL TO NOT INCREASE RATES.

WE'RE MAKING A RECOMMENDATION THAT THEY NOT INCREASE THE MONTHLY CUSTOMER CHARGE AND INSTEAD, UH, PUT ANY INCREASE INTO THE VOLUMETRIC RATES, WHICH KEEPING WITH THE, WITH THE RATE DESIGN APPROVED BY CITY COUNCIL AFTER THE LAST RATE CASE.

SO THE END RESULT WOULD BE AUSTIN ENERGY GETTING THE SAME AMOUNT FROM CUSTOMERS, UM, BUT DOING THAT, UH, IN A WAY THAT IS BETTER ALIGNED WITH WHAT WAS NEGOTIATED AND APPROVED BY COUNSEL IN THE LAST RATE CASE, PARTICULARLY AROUND THE RESIDENTIAL CUSTOMER CHARGE.

UM, AND WHEN FOLKS HAVE READ THOSE, I GUESS I'LL SCROLL DOWN.

LET ME KNOW IF I'M LEAVING YOU BEHIND.

I KNOW I'M A SLOW READER.

IS IT OKAY TO MOVE ON? THERE'S A ONE THERE.

A SMALL IS, IS THE, IS THE PUSHBACK AGAINST, UM, CHANGING THE FIXED RATE PERIOD OF CHANGING THE FIXED CHARGE PERIOD OR CHANGING THE FIXED CHARGE WITHOUT GOING THROUGH A RATE CASE? WELL, I MEAN, TO BE HONEST, UH, WE, YOU KNOW, WE'RE NOT SUPPORTIVE OF INCREASING IT IN THE RATE CASE.

UM, BUT AT LEAST IN THAT PROCESS, YOU KNOW, I THINK THE VARIOUS, UM, WE DISCUSSED AND, UM, YOU KNOW, DIFFERENT, UM, RATE, UH, DESIGNS WERE, UM, MODELED AND, YOU KNOW, THERE WAS, THERE WAS MORE INFORMATION PROVIDED ABOUT HOW IT WOULD AFFECT A WHOLE, UM, SUITE OF DIFFERENT CUSTOMERS.

UM, YOU KNOW, IN GENERAL, I THINK, UH, YEAH, I'LL SPEAK FOR A PUBLIC CITIZEN, BUT WE, WE GENERALLY TEAM UP WITH SIERRA CLUB, UM, ON THIS.

UM, WE SUPPORT HAVING MORE OF THE CHARGE IN VOLUMETRIC RATES BECAUSE THAT PRESERVES THAT INCENTIVE TO CONSERVE ENERGY.

THE HIGHER THE FIXED FEE IS, THE LESS AGENCY ANY CUSTOMER HAS, YOU KNOW, REDUCE THEIR BILL THROUGH CONSERVATION.

AND, UM, THAT HAS THE POTENTIAL TO, YOU KNOW, IF TAKEN TO AN EXTREME, WHICH, YOU KNOW, WE DEFINITELY FELT LIKE THE $25 WAS KIND OF EXTREME, UM, YOU KNOW, TO REALLY MAKE IT SO THERE'S JUST LESS, LESS INCENTIVE TO REDUCE YOUR USAGE AND THAT ULTIMATELY ENDS UP INCREASING COST FOR CUSTOMERS IN THE LONG TERM.

WELL, I WAS GONNA ANSWER IT DIFFERENTLY, EVA.

I WAS GONNA SAY, IF YOU READ THE LAST SENTENCE IN THAT FIRST PART, IT SAYS CHANGES IN RATE DESIGN SHOULD BE HANDLED THROUGH A FUTURE RATE CASE, NOT THROUGH THE ANNUAL BUDGET PROCESS.

SO THIS PARTICULAR RECOMMENDATION DOESN'T SPEAK TO WHAT WE SHOULD DO IN A RATE CASE THAT COMES IN A RATE CASE.

WE'RE JUST SAYING AS PART OF THIS ANNUAL BUDGET PROCESS, YOU SHOULDN'T CHANGE THE RATE DESIGN BY INCREASING THE, THE MONTHLY CUSTOMER CHARGE.

YOU JUST DON'T WANT IT TO HAPPEN THIS WAY? WELL, TECHNICALLY, TECHNICALLY BECAUSE THE CITY COUNCIL IS THE REGULATORY BODY, ANYTIME THEY WANT, THEY CAN VOTE TO CHANGE RATES.

AND I'M SORRY, I WAS JUST ANSWERING, I I WASN'T SURE IF THAT WAS THE NATURE OF THE QUESTION OR IF YOU WERE ASKING ABOUT OUR POSITION MORE GENERALLY.

UM, WELL, I I GUESS THE, THE QUESTION WAS MORE IS LIKE, ARE, ARE YOU SAYING THAT LIKE, THAT CHANGING IT IN THIS PROCESS IS NOT ACTUALLY ALLOWED AND SHOULDN'T BE ALLOWED TO DO THAT? OR YOU JUST, OR

[00:50:01]

SO I WOULD SAY THAT IT'S NOT ALLOWED, THERE'S NOTHING ILLEGAL ABOUT IT.

UM, I WOULD SAY THAT IT, YOU KNOW, UM, IS PROBLEMATIC AND, UM, YOU KNOW, MAYBE NOT IN LINE WITH THE PRACTICE, THE CHANGE RATE, DESIGN WITH THE RATE CASE, AND THAT IS WHAT WE'RE SAYING HERE.

UM, BUT THAT, YOU KNOW, LEGALLY SPEAKING, COUNSEL CAN, CAN VOTE ON ANY RATE THEY WANT ANY TIME CHAIR.

YEAH, I JUST, I MEAN, I JUST NOTE LIKE IF YOU LOOK AT LIKE, LIKE DATA FROM THE EIA AND OTHER, OTHER TYPES OF STUFF, I MEAN, IF YOU LOOK AT LIKE WHAT THE, THE PARTS OF THE, YOU KNOW, THE, THE PERCENTAGE OF LIKE, THE RATES THAT COME FROM FIXED VERSUS VARIABLE, YOU KNOW, COST ARE, ARE CHANGING OVER TIME AND FIXED COSTS ARE, ARE GOING UP, ALL VARIABLE COSTS ARE ARE GOING DOWN.

UM, IT SEEMS LIKE IT WOULD MAKE SENSE ABOUT THE COST FOR THE UTILITY OR THE FEES FOR THE CUSTOMER.

LIKE WHAT MAKES UP, LIKE AN WHAT, WHAT MAKES UP LIKE A RATE, LIKE THE, THE FIXED PART OF THAT IS LIKE INCREASING OVER TIME WITH LIKE MORE TRANSMISSION, UM, MORE PROGRAMS, OTHER THINGS LIKE THAT.

AND THE VARIABLE COST IS GOING DOWN, LIKE GENERALLY LIKE AS LIKE VARIABLE COSTS AND MARKETS HAVE HAVE GONE DOWN.

AND SO I'M JUST, IT, I DON'T KNOW.

I MEAN IT MORE COST ARE FIXED VERSUS VARIABLE.

SO IT, I DON'T KNOW.

IT MAKES IT, IT DOES MAKE SENSE TO ME.

I MEAN I CAN SEE IT FROM, LIKE, I CAN SEE IT FROM LIKE, I MEAN I CAN UNDERSTAND IT FROM LIKE AN AFFORDABILITY POINT OF VIEW, BUT LIKE, I MEAN, IT IS, IT IS MORE OF LIKE MORE OF A UTILITIES COST ARE FIXED VERSUS, VERSUS VARIABLE.

UM, I MEAN I THINK THIS IS WHERE WE GET INTO THE, THE BENEFIT OF A RATE PIECE AS WE CAN DIG INTO THE DETAILS FOR AUSTIN ENERGY AND, UM, PUT FORWARD DIFFERENT, YOU KNOW, KIND OF RATE MAKING, UH, PHILOSOPHIES I GUESS AND, AND, UH, YOU KNOW, REALLY HASH THAT OUT.

UM, I KNOW THAT, YOU KNOW, NOT EVERYBODY AGREES THAT O FIXED COSTS NEED TO BE RECOVERED THROUGH A FIXED FEE.

UM, YOU KNOW, I THINK REASONABLE MINDS CAN PERHAPS DISAGREE ON THAT.

UM, AND, AND, AND THAT'S WHERE THE RIGHT CASE COMES IN.

I THINK WHERE WE'RE COMING FROM IS THIS WAS A VERY LIKE SPECIFICALLY HOTLY CONTESTED ITEM THAT WAS, YOU KNOW, SETTLED ON.

AND SO SEEING IT CHANGED IN THIS, UH, FASHION IS, IS OF CONCERN FROM THAT PERSPECTIVE.

I THINK COMMISSIONER BILL HAD IT RIGHT CASE THEN WE CAN ALL DIG INTO IT AGAIN.

CAN I JUST ASK SOMEONE FROM STAFF TO PROVIDE A BRIEF EXPLANATION OF THE RATIONALE BEHIND INCREASING THE FIXED COST AS OPPOSED TO THE VOLUMETRIC RATE? SO I CAN GIVE YOU ABOUT A HALF A DOZEN REASONS WHY, UH, OUR, OUR, THAT SUPPORT OUR PROPOSED CHANGE IN RATE STRUCTURE.

LET ME FIRST START BY COMMISSIONER RHODES IS ABSOLUTELY RIGHT.

THE MAJORITY OF OUR COSTS ARE FIXED, RIGHT? WHEN YOU START LOOKING AT, WE, WE, WE BUY A TRANSFORMER, WE RUN WIRE TO YOUR HOUSE AND THAT COST IS THERE.

IT DOESN'T MATTER HOW MANY KWH, HOW MUCH ENERGY YOU USE DEBT SERVICE DOESN'T MATTER HOW MUCH ENERGY YOU USE, UM, PAYROLL DOESN'T MATTER HOW MUCH ENERGY YOU CONSUME.

SO THERE IS A FIXED COST COMPONENT.

THE INCREASE THAT THE DOLLAR AND A HALF INCREASE IN THE FIXED CARD IS IN KEEPING WITH THE LAST RATE CASE IN THE SENSE THAT COUNCIL DID RECOGNIZE THE NEED FOR INCREASED FIXED COST RECOVERY.

NOW THEY IMPLEMENTED IT WITH GRADUALISM, BUT IN FACT THEY DID RAISE OUR CUSTOMER CHARGE AND THEY RECOGNIZE THAT NEED.

THIS PROPOSAL DOES THE SAME THING.

IT JUST CONTINUES ON THAT STEP.

BUT THREE COMMON SENSE REASONS WHY THIS PROPOSAL IS GOOD IS A, IT'S FAIR.

EVERYBODY PAYS THE CUSTOMER CHARGE, INCLUDING THE WEALTHY INDIVIDUAL THAT LIVES IN A DOWNTOWN CONDO THAT USES TWO OR 300 KWH.

THE SECOND OF ALL, IT'S REVENUE STABILITY.

WE'RE COST RECOVERY, RIGHT? SO EMBEDDING A COST AND A FIXED CHARGE ENSURES THAT THAT MONEY COMES IN TO PAY THOSE FIXED COSTS.

I JUST, IN A SLIDE, I SAID, LOOK AT THE COMBINATION OF, OF, UM, COST OF LIVING INCREASES, DEBT SERVICE, AND UM, UH, GENERAL FUND TRANSFER OVER A 5% RE THOSE COSTS ARE NOT GOING TO GO

[00:55:01]

UP OR DOWN WHETHER WE, WHETHER WE SPIN A METER OR NOT.

AND SO WE HAVE TO ENSURE THE, TO THE BEST OF OUR ABILITY TO CUT, GET REVENUES AND TO PAY FOR THAT, THAT, THAT'S, THAT'S THE SECOND ONE.

AND THE THIRD IS THIS PROPOSAL PROTECTS CAP CUSTOMERS.

'CAUSE CAP CUSTOMERS DON'T PAY THE CUSTOMER CHARGE.

THAT PROPOSAL DOES NOT PROTECT CAP CUSTOMERS.

ANYTHING IN A VOLUMETRIC CHARGE, THEY A CAP CUSTOMER PAYS.

NOW THERE'S A DISCOUNT THAT'S ASSOCIATED WITH IT, BUT A CUSTOMER CHARGE IS, IS NOT ASSESSED RUSTY, HOW MUCH INCREASE IN REVENUE IS THIS DOLLAR AND A HALF PROBABLY GONNA BRING IN? SO I, I CAN'T QUOTE YOU A NUMBER, BUT I CAN GET ROUNDABOUT IF YOU WILL SAY THERE'S, I DON'T KNOW, 550,000 RESIDENTIAL CUSTOMERS AT A BUCK AND A HALF.

THAT'S WHAT, MAYBE SEVEN 50, 800,000 A MONTH TIMES, UH, TIMES 12.

SO 9 MILLION, SOMETHING LIKE THAT MAYBE, IS THAT, IF MY MATH IS RIGHT, KEEP IN MIND THE WHOLE, THE WHOLE BUNCH IS 38, BUT THAT INCLUDES, YOU KNOW, THE COMMERCIAL INDUSTRIAL CUSTOMERS AS WELL, RIGHT? RIGHT.

LEMME FOLLOW UP ON WHAT YOU JUST SAID.

THE, THE CAP CUSTOMERS ARE, ARE NOT CHARGED A CUSTOMER FEE.

THEY ARE EXEMPT FROM PAYING THE CUSTOMER CHARGE.

SIMPLY A RECOMMENDATION TO CITY COUNCIL TO GIVE AUSTIN ENERGY THE INCREASE THEY NEED IN ANOTHER WAY.

I DIDN'T, I DIDN'T REALIZE THAT.

I THOUGHT THEY GOT A DISCOUNT ON THEIR WHOLE THING, BUT I DIDN'T REALIZE THEY WERE EXEMPT FROM THAT.

I MEAN, THEY, THEY, THEY DO NOT PAY A CUSTOMER CHARGE.

THEY'RE ASSESSED A 20% DISCOUNT ON EVERYTHING OTHER THAN THE PSA, UM, AND THEY DON'T PAY THE, THE, THE CAP CHARGE.

AND THAT'S GREAT FOR THOSE CUSTOMERS, BUT THE CUSTOMER WHO IS LOWER INCOME BUT JUST ABOVE THE CAP LIMIT IS GOING TO PAY ALL OF THE INCREASE.

SO I THINK THIS IS AGAIN WHERE LIKE, YOU KNOW, THE CONSUMER ADVOCATE AND THE RATE CASE REALLY PLAYED A REALLY VALUABLE ROLE BY, YOU KNOW, LOOKING AT THE IMPACT OF THESE DIFFERENT, UM, WAYS OF INCREASING RATES ACROSS THE SPECTRUM OF CUSTOMERS, NOT JUST, YOU KNOW, CAP OR NON CAP.

THAT THAT MAY OR MAY NOT BE TRUE IF THAT CUSTOMER JUST ABOVE THE CAP, CAP LIMIT IS MULTI-GENERATIONAL LIVING IN A, IN AN OLD HOME THAT'S NOT INSULATED AND THEIR CONSUMPTION IS VERY HIGH AND YOU HAVE ASSESSED EVERYTHING IN A VOLUMETRIC CHARGE, YOU'RE IMPACTING THEM EVEN MORE.

SO.

BUT I'LL TELL YOU WHAT, WHAT YOUR PROPOSAL DOES IS YOUR, YOUR CONCERNS ABOUT THOSE CUSTOMERS THAT ARE RIGHT ABOVE CAP, BUT IGNORES THE ACTUAL CAP CUSTOMERS, THOSE THAT ARE BELOW AUSTIN ENERGY'S PROPOSAL, AT LEAST GETTING A DISCOUNT, RIGHT? THE THE CUSTOMERS THAT I'M SPEAKING TO ARE GETTING NO DISCOUNT CURRENTLY.

AND YEAH, THERE'S, I MEAN, RIGHT, THERE'S A WIDE SPECTRUM, BUT THIS, YOU KNOW, WAS SOMETHING THAT WAS, UM, DELVED INTO IN THE RATE CASE.

AND YES, THERE ARE A FEW OUTLIERS THAT ARE WEALTHY CUSTOMERS THAT ARE IN THOSE DOWNTOWN APARTMENTS AND THERE ARE, THAT ARE LOW ENERGY USERS AND THERE ARE A FEW, YOU KNOW, HIGH ENERGY USERS THAT ARE LOWER INCOME, BUT THAT'S NOT THE PREDOMINANT TREND.

THE PREDOMINANT TREND IS AS INCOME GOES UP, SO DOES ENERGY USE BECAUSE MOST OF THE HIGHER INCOME FOLKS ARE LIVING IN LARGER HOMES WITH MULTIPLE AIR CONDITIONING UNITS AND POOL PUMPS AND WHATEVER ELSE.

UM, SO YOU KNOW, THIS, THIS I THINK EXACTLY GOES TO THE POINT WE CAN'T DO A RATE CASE, UH, HERE.

UH, AND MAKING THESE KIND OF CHANGES, UM, IN THIS WAY IS PROBLEMATIC.

YEAH, CYRUS, I'LL JUST FINISH UP BY SAYING WE'RE PROPOSING A RATE INCREASE THAT RESULTS IN A $43 MILLION DEFICIT IN 2026.

IT'S IMPERATIVE WE RECOVER THAT MONEY AND I THINK IT'S PERFECTLY REASONABLE TO DO RATE DESIGN TO THE BEST OF OUR ABILITY TO MAKE SURE THAT WE HAVE THAT REVENUE STABILITY TO NOT ONLY RECOVER WHAT WE NEED, BUT TO HELP US IN THAT NEXT STEP AND OVERCOME THE $43 MILLION DEFICIT THE NEXT YEAR.

NOW CYRUS, YOU HAD YOUR HAND RAISED.

YEAH, I WAS JUST GONNA SAY, YOU KNOW, REASONABLE MINDS CAN DIFFER ON THIS PROPOSED, UM, UH, RECOMMENDATION.

I WAS GONNA SUGGEST, I WAS JUST GONNA SUGGEST, UH, THAT I MAKE A MOTION TO ADOPT THIS.

I ASSUME CABO WOULD SECOND IT AND WE CAN CALL THE QUESTION, I DON'T KNOW IF THERE'S SUPPORT FOR THIS OR NOT, BUT YOU KNOW, IT, IT'S

[01:00:01]

UM, OBVIOUSLY CITY COUNCIL CAN CHOOSE TO IGNORE IT IF WE, IF IF, IF THE MAJORITY OF EUC MEMBERS SUPPORT THIS, THEN THEY SHOULD SUPPORT IT.

AND IF THEY DON'T, THEY DON'T.

NO, THERE'S NO HARD FEELINGS.

THIS ISN'T REALLY A BLACK AND WHITE ISSUE.

UH, IT'S MORE OF A CONCERN ABOUT DOING RATE DESIGN AND ON AN ANNUAL BASIS.

UM, SO I WAS GONNA JUST MAKE THE MOTION TO ADOPT THIS AND THEN, YOU KNOW, SEE WHERE IT GOES.

SORRY.

MY, MY CONCERN ON IT WAS, I, I WAS BELIEVING THAT THE, THE $10 BASE RATE WAS REALLY HARD FOUGHT TO PROTECT THE LOW INCOME CUSTOMERS.

AND I GUESS I MISSED THE POINT THAT CAP CUSTOMERS ARE EXCLUDED FROM THAT.

SO THERE'S ALWAYS GONNA BE A THRESHOLD WHERE SOMEBODY NOW ALL OF A SUDDEN QUALIFIES TO PAY.

BUT, UM, WE CERTAINLY ARE DOING AN EXTRAORDINARY AMOUNT OF GOOD TO HELP THE CAP PEOPLE AND THAT'S REFLECTED IN, IN THIS NEW BUDGET TOO.

UH, SO I'M NOT SURE WHERE THE DIVIDING LINE NEEDS TO BE, BUT IT, IT'S NOT AS, AND, AND IT'S AN AGREED POINT BECAUSE AUSTIN ENERGY WANTED MORE AND WE, WE ON THE ENVIRONMENTAL SIDE WANTED LESS AND WE ARRIVED AT 10 BUCKS.

I'M NOT SURE IT'S A SACRED NUMBER, BUT, UH, WHAT WE DO HAVE IS A CAP PROGRAM THAT HELPS ABOUT 80,000 PEOPLE OR HOUSEHOLDS.

AND THAT'S, YEAH, WE, WE ARRIVED AT, WE, WE ARRIVED AT 15 BUCKS.

THAT WAS, WE WERE AT, WE WERE AT 10 BUCKS AND WE RAISED IT TO 15 OR WE WERE AT 12.

OH, OKAY.

I THINK TO 15.

AND THIS WOULD TAKE IT TO 1650.

THE, THE ONE OTHER PART OF, OF YOUR PROPOSAL, UM, THE RATE CASE IS, IS A GINORMOUSLY COMPLEX AND INVOLVED PROCESS, JUST LIKE THE GEN PLAN.

AND I, I I QUESTION WHETHER IT'S REALISTIC TO DO THAT A LOT MORE FREQUENTLY, UH, JUST BECAUSE OF THE COST STAFF TIME, EVERY, EVERYBODY'S TIME INVOLVED.

I MEAN, THE IDEA OF THE RATE CASE I THINK IS, IT COULD BE RESOLVED AND THEN PROJECTED OUT A FEW YEARS.

IS IT, IS IT FEASIBLE TO DO IT MORE THAN EVERY FIVE YEARS? SO WE HAVE A, UM, A MOTION BY COMMISSIONER REED AND A SECOND BY COMMISSIONER WHITE.

IS THERE ANY FURTHER DISCUSSION? YEAH, I HAVE A, I HAVE A QUESTION.

UM, THIS IS RAUL FROM ONLINE 'CAUSE YEAH, IT'S LIKE I WAS GETTING CONFUSED BY THE BASE RATE AND THE 5%, BUT WE'RE INCREASING AT $1.50, YOU KNOW, SO, SO IT LOOKS LIKE I KIND OF WAS GOING THROUGH ALL OF THE BACKUP.

SO THE, THE BASE RATE'S GONNA INCREASE $3.10 AND 1.5 OF THAT'S GONNA BE THROUGH THE CUSTOMER CHARGE INCREASE THAT WE'VE BEEN DISCUSSING RIGHT NOW.

IS THAT, IS THAT CORRECT? THAT'S CORRECT.

I TRYING TO MAKE SENSE OF THE 5% AND THE FACT THAT THIS IS MORE THAN 5%.

SO, BUT I THINK IT'S 'CAUSE WE HAVE THE BASE RATE AND CUSTOMER CHARGE IS JUST PART OF THE BASE RATE.

THAT'S CORRECT.

SO THE 3.1 INCREASE 1.5 ISN'T THE CUSTOMER CHARGE, I JUST WANT SURE.

UM, AND THEN THE OTHER THING IS TO CYRUS AND , UM, 'CAUSE I DO THINK THEY MAKE A VALID POINT ABOUT THE COUNCIL'S DECISION AT THE LAST RAID CA CASE AND SENDING A MESSAGE, RIGHT.

THAT YOU ALL DECIDED AFTER ALL THAT DELIBERATION X RIGHT.

AND THIS DEVIATES FROM THAT.

UH, YOU KNOW, BY INCREASING THAT UNCERTAINTY, WE DON'T KNOW WE, WE CAN BE LESS SURE ABOUT WHAT IS ACTUALLY GONNA BE RAISED AND, AND MAYBE, UH, YOU WOULD EVEN HAVE TO INCREASE THE VOLUMETRIC RATE TO ACCOUNT FOR THAT, UH, UNCERTAINTY THAT YOU, YOU CREATE BY MOVING AWAY FROM THE CUSTOMER CHARGE.

JUST, YOU KNOW, IS THAT BEING COMMUNICATED? 'CAUSE I KNOW WE'RE IN A, WE'RE IN A TOUGH FINANCIAL SPOT, BUT, UM, BUT I THINK CYRUS AND KABA, YOU ALL ARE SAYING NOT TO NOT, YOU'RE NOT SAYING LET'S NOT INCREASE THE BASE RATE BY 5%, YOU'RE JUST SAYING LET'S NOT DO IT IN THIS WAY.

YEAH, WE'RE STILL SUPPORTING AUSTIN ENERGY GAIN EXACTLY WHAT THEY'RE ASKING FOR IN TERMS OF THE AMOUNT OF MONEY.

ALRIGHT, THANKS.

ANY, ANYTHING ELSE? YEP, GO AHEAD.

UM, YOU KNOW, UH, COMMISSIONER WHITE, YOU SAY THAT, UH, YOU SUPPORT KEEPING THE, THE INCREASE AT WHAT'S BEEN PROPOSED, BUT SHIFTING HOW IT'S, UH, UM, HOW IT'S BILLED.

BUT IF YOU MOVE THE INCREASE FROM THE CUSTOMER CHARGE TO THE VOLUMETRIC, YOU INCREASE UNCERTAINTY ABOUT WHAT THE, THE TOTAL AMOUNT THAT'S ACTUALLY GONNA BE RAISED.

AND SO,

[01:05:01]

AND THAT ISSUE OF CERTAINTY WAS ONE THAT WAS A PRIME TOPIC IN THE LAST RATE CASE.

UM, YOU KNOW, I THINK IT IS A FACT.

OBVIOUSLY IF IT'S A FIXED CHARGE, YOU'RE GONNA GET IT NO MATTER WHAT.

YOU CAN USE ZERO KILOWATT HOURS AND YOU'RE STILL GONNA PAY THE FIXED CHARGE.

UM, IT'S UNDENIABLE.

THERE'S PROS AND CONS TO THAT.

AND AGAIN, THIS, THIS IS WHY, UM, IT WAS, IT WAS A LENGTHY DISCUSSION JUST ON THIS ELEMENT, YOU KNOW, IN THE RAPE CASE, YOU KNOW, BOTH IN THE PROCESS OF THE RAPE CASE ITSELF AND AT CITY COUNCIL.

CYRUS, DID YOU HAVE SOMETHING ELSE? YOUR HAND IS RAISED.

OH, SORRY.

UM, NO, I THINK WE SHOULD VOTE SO I CAN CONTINUE MY DRIVE.

UH, BACK TO AUSTIN .

WE JUST THOUGHT YOU WERE IN WEST TEXAS AND WAVING AT EVERYBODY.

YOU DROVE BY LIKE THEY DO OUT THERE.

UM, WELL, BEFORE WE VOTE, I'LL JUST SAY I'M, I DON'T KNOW THAT I NECESSARILY DISAGREE WITH THE INTENT HERE.

MY CONCERN IS THIS IS KIND OF A, A LAST MINUTE DEAL AND, UH, IT, IT JUST SEEMS LIKE THE TOO LITTLE, TOO LATE IF THIS IS AN, AN ISSUE.

THIS, THIS PROBABLY WOULD'VE BEEN BETTER TO BE ADDRESSED MONTHS AGO WHENEVER THE BUDGET PROCESS STARTED.

SO THAT'S ALL I, BUT WE DIDN'T, WE DIDN'T KNOW THIS WAS BEING PROPOSED MONTHS AGO.

I DO THINK THAT, YOU KNOW, THAT'S JUST KIND OF THE UNFORTUNATE NATURE OF THE BUDGET PROCESS.

YEAH, IT'S, YEAH, IT'S, IT'S NOT A GREAT PROCESS.

SO YEAH.

AND WE WEREN'T POSTED FOR ACTION LIST LAST MONTH.

YOU YEAH, WELL THAT'S THE, THAT'S THE OTHER THING.

IT WASN'T POSTED AS A, AS AN ITEM HERE FOR THIS, SO.

ANY OTHER, UH, COMMENTS OR QUESTIONS BEFORE WE VOTE? OKAY.

ALL IN FAVOR? RAISE YOUR HAND.

SO THAT'S, I SEE COMMISSIONER ALVAREZ, COMMISSIONER REED, COMMISSIONER WHITE.

ANYONE ELSE? OKAY.

ALL OPPOSED, RAISE YOUR HANDS.

SO I SEE COMMISSIONER RHODES, COMMISSIONER BRADEN, COMMISSIONER BLACKBURN, COMMISSIONER BELLAMY.

IS IT TWO CHRIS'S .

OKAY, SO THE MOTION DOESN'T CARRY.

IT'S ALL GOOD.

LIKE I SAID, IT'S NOT BLACK AND WHITE, BUT WE WANTED TO RAISE THE ISSUE.

IS ON THE THIRD QUARTER FINANCIAL REPORT.

WELL, IT'S A, IT'S A GOOD POINT.

AND I THINK THIS MERITS DISCUSSION NEXT TIME WHEN WE START TALKING ABOUT WHAT ARE THE, THE, THE BUDGET CHANGES IN THE, IN THE RATES GONNA LOOK LIKE.

AGREED.

THANKS FOR RAISING IT.

UM, SO ANY OTHER ITEMS FOR, UM, WELL WE HAVE OTHER STAFF BRIEFING, SO, OKAY.

WE HAVE A FIRST STAFF BRIEFING

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

HI, GOOD EVENING, COMMISSIONERS.

MY NAME IS STEPHANIE ALKA.

I'M A DIRECTOR IN OUR FINANCE TEAM AND I'M PRESENTING TO YOU OUR THIRD QUARTER FINANCIAL RESULTS FOR FISCAL YEAR 2025.

WE HAVE A STANDARD AGENDA FOR THE FINANCIAL REPORT THIS EVENING.

I'LL RUN THROUGH AN EXECUTIVE SUMMARY OF OUR FINANCIAL RESULTS AS OF JUNE.

UM, WE'LL LOOK AT OUR FINANCIAL HEALTH GOAL, WHICH IS OUR STRATEGIC GOAL OF AA BOND RATING THROUGH STANDARD AND POORS, AND THEN WE'LL RUN THROUGH OUR BUDGET TO ACTUAL PERFORMANCE AND THEN MORE ON OUR FINANCIAL STATEMENTS AND FINANCIAL POSITION.

NEXT SLIDE PLEASE FOR THE EXECUTIVE SUMMARY.

OUR OPERATING RESULTS ARE TRENDING SIMILAR TO LAST QUARTER.

WE ARE SEEING THAT WE'VE GOT OPERATING INCOME ABOVE BUDGET AND SIMILAR TO LAST QUARTER, THAT'S DUE TO THAT $30 MILLION RESERVE TRANSFER THAT WE MOVE FROM OUR POWER SUPPLY OVER RECOVERY TO THE POWER SUPPLY STABILIZATION RESERVE.

UM, WHAT THAT DID WAS HELP THE UTILITY MEET THE 90 DAY MINIMUM OF, OF FUNDS ON HAND OF POWER COST.

UM, SO WE MEET THAT FINANCIAL

[01:10:01]

POLICY.

IT ALSO CREATED REVENUE FOR THE UTILITY, WHICH I JUST WANNA REMIND EVERYONE THAT IT IS A ONE-TIME REVENUE EVENT.

SO YOU'LL SEE THAT AS WE CONTINUE THROUGH THE FISCAL YEAR, BUT IT WON'T RECUR, UM, IN THE FUTURE.

UM, OUR BOND RATING, AGAIN, WE ARE TARGETING A DOUBLE A BOND RATING THROUGH STANDARD AND POS AS OF THE END OF THE QUARTER.

WE ARE AT DOUBLE A MINUS, UH, THROUGH S AND P.

UM, S AND P DID AFFIRM OUR RATING WHEN WE WENT TO THE BOND MARKET IN NOVEMBER OF 2024.

UM, I WILL NOTE THAT FITCH, WHO WE ALSO WORK WITH FOR OUR BOND RATING, JUST REVIEWED THE UTILITY AS PART OF AN ANNUAL SURVEILLANCE REVIEW.

UM, THEY DID ALSO AFFIRM THE AA MINUS WITH A STABLE OUTLOOK.

AND I WANNA JUST GIVE A QUICK NOTE ON THE HEELS OF RUSTY'S PRESENTATION.

UM, THE, UH, PUBLICATION DID NOTE THAT, UM, FACTORS LEADING COULD LEAD TO AN UPGRADE OR A DOWNGRADE IN BOTH HINGE ON OUR APPETITE FOR RATE INCREASES TO CONTINUE TO WORK TOWARDS FINANCIAL STABILITY FOR THE UTILITY.

OUR, UH, FINANCIAL POLICIES, WE HAVEN'T SEEN ANY CHANGE SINCE THE LAST QUARTER.

I'VE GOT A STILL IN SUBSTANTIAL COMPLIANCE BECAUSE WE DON'T MEET MINIMUMS ON SOME OF OUR RESERVE INDIVIDUAL BUCKETS.

UM, IN TOTAL WE DO MEET THAT MINIMUM 150 DAYS PER FINANCIAL POLICY, UM, WHICH MOVES US INTO THE POWER SUPPLY ADJUSTMENT NOTE.

WE ARE 109 MILLION OVER RECOVERED AS OF THE END OF JUNE, AND THAT IS CONTRIBUTING TO US MEETING THAT 150 DAY MINIMUM.

AS RUSTY MENTIONED, WE'VE HAD FIVE DECREASES TO THE RATE THIS FISCAL YEAR, UM, AND WE CONTINUE TO CLOSELY LOOK AT POWER COST OVER RECOVERY BALANCES AND THE NEED TO CHANGE THAT RATE.

FOR OUR, UH, BOND RATING TARGET, UM, THIS IS A REPEAT, BUT WE'RE AT AA MINUS THROUGH STANDARD AND PORES.

WE USE FOUR METRICS TO, UM, BENCHMARK OURSELVES OR TARGET TO ALIGN WITH OTHER, UH, AA PUBLIC POWER UTILITIES.

I'LL START WITH DAY'S CASH ON HAND.

WE ARE AT 195 DAYS AGAINST OUR TARGET.

THAT TARGET OF 200 BEING MORE LIKE AA VERSUS OUR FINANCIAL POLICY, WHICH IS LOWER, THAT'S A, A MINIMUM 150 DAYS WE NEED TO HAVE ON HAND.

AND AS A REMINDER, THE A HUNDRED MILLION OR SO OF POWER SUPPLY OVER RECOVERY IS IN THAT NUMBER.

AND SO ABOUT 30 DAYS OF THAT WILL BE RETURNED THROUGH FUTURE RATES IN THE POWER SUPPLY ADJUSTMENT ON DEBT SERVICE COVERAGE.

WE ARE A LITTLE BIT ABOVE TARGET THERE, WHICH IS GREAT NEWS.

UM, THE $30 MILLION RESERVE TRANSFER THAT I MENTIONED EARLIER, THAT IS HELPING THAT RATIO.

SO KEEP IN MIND THAT ONE TIME EVENT WILL GO AWAY IN THE NEXT FISCAL YEAR.

AND WITH OUR, UM, FIVE YEAR PLAN AND CAPITAL IMPROVEMENT PLAN, I BELIEVE IT'S 1.7, UM, BILLION.

WE REALLY NEED THOSE STABLE REVENUES TO CONTINUE TO RECOVER.

DEBT SERVICE, WHICH AS RUSTY MENTIONED, IS A VERY LARGE FIXED COST FOR THE UTILITY FOR OUR OPERATING MARGIN.

THAT IS DEPENDENT WEATHER DEPENDENT.

WE DID HAVE SOME WARMER WEATHER AT THE BEGINNING OF OUR FISCAL YEAR, WHICH CONTRIBUTED TO THAT, AS WELL AS THE $30 MILLION TRANSFER AND THE DEBT TO CAPITALIZATION.

WE HAVEN'T SEEN MUCH MOVEMENT THERE IN THE LAST COUPLE OF YEARS.

IT'S STEADY AT 57%.

I'LL NOW RUN THROUGH OUR BUDGET TO ACTUALS AND START WITH OUR FUND SUMMARY.

AT JUNE, I'VE HIGHLIGHTED THAT WE HAVE, UM, INCOME BETTER THAN EXPECTED OF 15 MILLION.

UM, KEEP IN MIND THAT IS DUE TO THE $30 MILLION RESERVE TRANSFER.

AGAIN, THAT THEME IS POPPING UP ALL THROUGH THE FINANCIAL RESULTS.

UM, WITHOUT THAT TRANSFER, WE'D BE WORSE OFF THAN BUDGET, ABOUT 15 MILLION.

I WILL NOTE THAT TOTAL OTHER OPERATING EXPENSES INCLUDES ABOUT A $7 MILLION ESTIMATE FOR OUR MAY MICROBURST STORM.

UM, AND THAT'S PUSHING US A LITTLE BIT OVER BUDGET AT THIS POINT IN THE FISCAL YEAR IN THAT OPERATING EXPENSE LINE.

DECREASES IN THE RATE OVER THE YEAR.

THIS IS THE SLIDE THAT YOU TYPICALLY SEE THAT SHOWS YOU THE KIND OF PERFORMANCE OF OUR POWER SUPPLY ADJUSTMENT RATE.

SO THE GOLD AND GRAY BARS, UM, TELL YOU WHAT OUR COSTS WERE AGAINST BUDGET FOR TOTAL POWER COST.

WE TRENDED A LITTLE BIT UNDER BUDGET AT THE BEGINNING OF THE YEAR, BUT WE'VE BEEN PRETTY STABLE AT BUDGET.

OVERALL, WE ARE DOING BETTER THAN WE EXPECTED.

UM, WE'VE HAD A PRETTY MILD MARKET THIS FISCAL YEAR, AND THE RATE THAT RECOVERS THOSE COSTS IS THE BLUE LINE THAT HOVERS ABOVE THE GRAPH.

THE DIPS ARE DUE TO TWO THINGS.

UM, IT PATTERNS OUT WITH THE USAGE FROM OUR CUSTOMERS AS WELL AS DEMONSTRATES TO YOU THE

[01:15:01]

OUR CAPITAL IMPROVEMENT PLAN FOR THE FISCAL YEAR IS ABOUT 400 MILLION.

UM, YOU CAN SEE THAT WE'RE TRENDING PRETTY, UM, CLOSE TO BUDGET IN MOST OF THE CATEGORIES EXCEPT TRANSMISSION AND DISTRIBUTION.

UM, THIS SLIDE IS REALLY SHOWING YOU THE IMPACT OF INFLATION AND SOME COST ESTIMATES THAT HAVE DIFFERED FROM WHAT WE PROJECTED WHEN WE INITIALLY SET THIS BUDGET.

UM, WE DO THINK WE'RE GONNA COME IN CLOSE TO BUDGET OVERALL, BUT WE ARE SEEING OVERAGES AND TRANSMISSION AT THIS POINT IN THE FISCAL YEAR.

THE WAY WE PAY FOR THOSE ASSETS IS IN THE PIE CHART.

WE HAVE SPENT, UM, 62% OF THE BUDGET PAYING FOR THAT THROUGH DEBT.

UM, THAT'S MORE THAN WE LIKE TO RATIO FOR, FOR DEBT.

WE LIKE A 50 50 SPLIT OF DEBT IN CASH, BUT OUR RECENT CASH CONSTRAINTS HAVE KEPT US ISSUING MORE DEBT TO PAY FOR THESE PROJECTS.

ONE MORE.

THE NEXT TWO SLIDES ARE OUR FINANCIAL STATEMENTS OR FINANCIAL POSITION AT JUNE FOR THE INCOME STATEMENT.

I THINK THE BIG TAKEAWAY HERE IS THAT WE DO HAVE INCOME AND THE FIRST COLUMN FOR JUNE, 2025 OF 17 MILLION.

THAT IS DUE TO THAT $30 MILLION IN REVENUE, THAT ONE TIME EVENT.

SO WE WOULD STILL BE SITTING IN A LOST POSITION HAD WE NOT TRANSFERRED THOSE FUNDS TO OUR RESERVE.

UM, WE ARE SEEING IMPROVEMENT AS YOU CAN SEE OVER THE FISCAL YEAR.

THAT'S DUE TO THE 2% BASE RATE INCREASE WE IMPLEMENTED.

AND SOME OF THAT IS ATTRIBUTED TO THE WEATHER.

AS YOU CAN SEE IN THE OPERATING EXPENSES LINE.

UM, COSTS ARE UP ABOUT 25 MILLION.

THAT IS, UM, JUST DEMONSTRATING THE PRESSURES THAT THAT'S PUTTING ON THE UTILITY.

UM, THE WEATHER REALLY DROVE THE IMPACT OF THE SALES BEING 4%.

I THINK WE'RE BUDGETING A LITTLE BIT CLOSER TO 2% ON SALES, UM, 1.6.

AND SO THAT REALLY DROVE UP THAT INCREASE.

UM, BUT THAT IS ALSO AFFECTING REVENUE.

SO, UM, THAT'S REFLECTED IN THE INCOME FOR THE YEAR.

AND FINALLY, OUR BALANCE SHEET.

I'VE HIGHLIGHTED CASH AND RESERVES FOR YOU IN THE PAST COUPLE OF QUARTERS.

UM, THE INCREASE IS SUBSTANTIAL OVER THE YEAR, BUT A BIG PORTION OF THAT IS THE POWER SUPPLY OVER RECOVERY.

AGAIN, THAT CASH WILL BE RETURNED TO OUR CUSTOMERS.

IT IS NOT AVAILABLE FOR THE UTILITY USE TO USE FOR OPERATIONS AND DAILY EXPENSES, BUT WE ARE IN A MUCH BETTER POSITION THAN WE HAVE BEEN IN THE PAST FEW YEARS.

AND SO THAT'S DEMONSTRATED ALSO IN THE GRAPH.

UM, WE ARE AT 698 MILLION TOTAL AND THAT IS CASH AND RESERVES.

UM, I'VE HIGHLIGHTED THAT WE ARE STILL UNDER TARGET, WHICH IS THE GOLD BAR THAT IS A 200 DAY TARGET, UM, AS I MENTIONED, FOR US TO GET CLOSER TO WHERE OTHER PUBLIC POWER UTILITIES ARE, UM, THAT ARE AA RATED.

AND THAT NEXT SLIDE PLEASE CLOSES OUT THE PRESENTATION QUESTIONS.

THIS IS NIKKI HUFF.

I'M GONNA INTERRUPT REAL QUICK BEFORE WE GO INTO CORRECTIONS.

UM, THANK YOU.

UH, COMMISSIONER, UH, I CAN'T SEE VANITA WHO JUST JOINED.

I NEED, UM, AT LEAST THREE PEOPLE REMOTE TO BE ON CAMERA IN ADDITION FOR THE THREE HERE TO FULFILL QUORUM RULES.

OTHERWISE, WE'LL HAVE TO CALL THE MEETING FOR LACK OF QUORUM.

OKAY, THANK YOU.

SO NEXT WE HAVE OUR THIRD QUARTER

[16. Staff Briefing on the Third Quarter Operations Report by Lisa Martin, Deputy General Manager and Chief Operating Officer. ]

OPERATIONS REPORT.

OKAY, BUT YOU'RE GONNA SEE ME DRIVING THROUGH WEST TEXAS, BUT I'M ON CAMERA.

WE, WE WE'VE GOT ENOUGH.

CYRUS, YOU, YOU DON'T HAVE TO KEEP YOUR CAMERA ON.

PLEASE BE SAFE.

COMMISSIONER REED? YES.

OTHERWISE, I'M GONNA START MY MEETING WITH A SAFETY MOMENT.

UM, LISA MARTIN, DEPUTY GENERAL MANAGER AND CHIEF OPERATING OFFICER.

GOOD EVENING CHAIR.

TUTTLE VICE CHAIR, I'M SORRY.

CHAIR KIRKSEY, VICE CHAIR WHITE AND COMMISSIONERS.

TODAY I'M PRESENTING THE OPERATIONS UPDATE FOR THE SAME QUARTER.

STEPHANIE JUST PRESENTED ON AS A REMINDER, THAT'S APRIL, MAY, AND JUNE OF 2025.

I HAVE THE STANDARD AGENDA FOR YOU.

STARTING WITH THE ENVIRONMENTAL PERFORMANCE, THIS IS WHERE YOU SEE FOR 25 FY 25 Q3, OUR CARBON FREE GENERATION AS A PERCENTAGE OF LOAD AVERAGED 68%.

AS A HIGH LEVEL SUMMARY, WE HAD 44% RENEWABLE PRODUCTION AND 68% CARBON FREE PRODUCTION, BOTH AS A PERCENTAGE OF LOAD FOR THIS QUARTER Q3.

OUR GENERATORS WERE LARGELY AVAILABLE WITH LIMITED DURATION OFFLINE DUE TO PLANNED OUTAGES AND PREPARATION FOR THE HOTTER SUMMER MONTHS.

AND OUR RELIABILITY PERFORMANCE METRICS INDICATE INCREASED STORM RESTORATION AND REPAIRS.

I'LL GO INTO A FEW MORE DETAILS ON THE NEXT SLIDES PLEASE.

[01:20:01]

THIS IS THE TIME OF YEAR WE START TO SEE LOAD INCREASING.

SO THE CARBON FREE GENERATION DOESN'T GO QUITE AS FAR, AND THUS YOU CAN KIND OF SEE COMPARED TO THE PREVIOUS THREE BARS, YOU SEE A DECLINE, UM, FROM THE AVERAGE OF THE PREVIOUS QUARTER.

ALTHOUGH, UH, IT IS IMPORTANT OR INTERESTING TO NOTE THAT THE CARBON FREE GENERATION VOLUME WAS ACTUALLY HIGHER IN THIS QUARTER THAN IN LAST QUARTER.

UH, THE VALUE IS ON PAR WITH LAST YEAR, UH, WHEN APRIL THROUGH JUNE PERFORMANCE WAS 67%.

NEXT SLIDE PLEASE FOR THE ROLLING 12 MONTH AVERAGE DATA.

THAT'S THE SMOOTH LINE HERE.

ENDING JUNE, 2025.

WE ARE AT 64% CARBON FREE GENERATION AS A PERCENTAGE OF LOAD STARTING IN THE UPPER LEFT HAND CORNER ON OUR PIE CHART.

OUR FUEL COST METRICS CONTINUE TO SHOW SIGNIFICANT USE OF CARBON FREE SOURCES AT 71%.

THAT'S THE SUM OF THE ORANGE AND YELLOW PIE WEDGES.

MOVING DOWN TO THE BLUE LINE CHART, THE SYSTEM PEAK DEMAND THIS QUARTER WAS LOWER DURING THIS FISCAL YEAR AT JUST UNDER 2,700 MEGAWATTS, UH, COMPARED TO THIS TIME DURING LAST YEAR WHEN IT WAS 28 33 MEGAWATTS.

THE BAR CHART IN THE TOP RIGHT SHOWS GENERATION FOR THE QUARTER, TOTALING ABOUT 3.55 MILLION MEGAWATT HOURS, WHICH IS SOMEWHAT GREATER THAN WHAT WE SAW IN THE SAME QUARTER LAST YEAR.

AND THE CONSUMPTION FOR THIS QUARTER WAS 3.87 MILLION MEGAWATT HOURS, WHICH IS ALSO GREATER THAN WE SAW THE SAME QUARTER LAST YEAR.

SO WHAT WE'RE SEEING IS HIGHER DEMAND OVERALL FOR THE QUARTER, BUT A SMALLER OR A LOWER PEAK AS WE JUST SAW IN THE BLUE LINE CHART.

FINALLY, IN THE BOTTOM RIGHT, THIS PIE CHART SHOWS THE POWER GENERATION AS A PERCENTAGE OF LOAD FOR THE QUARTER.

AND AGAIN, YOU SEE 44% RENEWABLE, 24% NUCLEAR FOR A TOTAL OF 68% CARBON FREE.

SHIFTING TO SOME RELIABILITY PERFORMANCE METRICS.

WE'LL START WITH SOME GENERATOR PERFORMANCE.

THIS SLIDE SHOWS OUR GENERATOR PERFORMANCE.

IN TERMS OF COMMERCIAL AVAILABILITY, WE SEE THAT STP WAS A HUNDRED PERCENT AVAILABLE WITH NO OPERATIONAL ISSUES TO REPORT.

AND BOTH SANDHILL COMBINED CYCLE AND FAYETTE POWER PROJECT HAD SOME SEASONAL PLANNED OUTAGES DURING THIS QUARTER, WHICH IS TYPICAL FOR THIS TIME OF YEAR.

AS MENTIONED BEFORE AND IN THE NOTE, AND NOW I'M GONNA PAUSE FOR A MOMENT ON THIS SLIDE.

UH, BECAUSE WE'RE SHOWING THE DATA IN A SLIGHTLY DIFFERENT WAY THAN WE HAVE IN THE PAST, WE'RE STILL CALCULATING OUR ELECTRIC VEHICLE CHARGING NETWORK, UH, UPTIME ON 12 MONTH ROLLING AVERAGES.

BUT HERE WE'RE DISPLAYING SEVERAL, UM, QUARTERS AT A TIME.

SO YOU CAN SEE THE TREND LINE AT THE TOP, YOU'LL SEE THE OVERALL NETWORK OF 1500 PLUS CHARGING STATIONS HAD AN UPTIME OF 98% ON THE 12 MONTH ROLLING AVERAGE.

AND THIS HAS REMAINED QUITE STEADY OVER THE PAST YEAR.

THE OVERALL UPTIME ON THE 30 DC FAST STATIONS ARE SHOWN ON THE BOTTOM CHART, AND THIS QUARTER IT WAS 88%.

UM, BUT YOU WILL, I WILL NOTE THAT THE FOUR MUELLER, HEB DC FAST STATIONS EXPERIENCED A MULTI-DAY OUTAGE, UH, FOR ABOUT A WEEK, UM, AFTER THE MICROBURST STORM DUE TO A TRANSFORMER OUTAGE.

AND THAT'S WHAT GENERALLY ACCOUNTS FOR THE DIP DOWN THIS QUARTER.

THEY ARE BACK ONLINE AND AVAILABLE FOR USE.

COMMISSIONER RHODE, DO YOU HAVE A QUESTION? MAYBE I SHOULD HAVE ASKED IT.

UM, ON, UH, SLIDE IS ACTUALLY SLIDE SEVEN OR SEVEN OR EIGHT WHEN YOU'RE TALKING ABOUT, UM, OH YEAH.

SO THIS ONE ON THE, YOU SAID AVERAGE CONSUMPTION WAS, WAS UP, BUT PEAK WAS DOWN.

IS THAT YES.

IS THAT WHAT I WAS, IS THAT WHAT I HEARD? YES.

IS THAT, IS THAT, IS THAT ATTRIBUTABLE TO ANY KIND OF LIKE DIFFERENT KIND OF CUSTOMER CLASS, LIKE MORE DATA CENTERS OR OTHER TYPES OF LIKE FLAT LOADS VERSUS, UM, I, I DON'T HAVE IT DRILLED DOWN TO THAT LEVEL OF GRANULARITY.

I'M SIMPLY TALKING ABOUT WHAT YOU SEE HERE IN TERMS OF THE CONSUMPTION BAR CHART.

UH, THIS NUMBER IS HIGHER THAN IT WAS, UM, THIS TIME LAST YEAR, BUT YOU CAN SEE THAT IN THE BLUE BAR CHART IT GOES DOWN.

SO I'D HAVE TO LOOK FURTHER TO FIGURE OUT, UH, WHERE THE USAGE WAS.

IS IT LIKELY WEATHER? I JUST NEED, IS IT LIKELY WEATHER TO MAKES A DIFFERENCE? WEATHER DOES MAKE A DIFFERENCE.

UH, COMMISSIONER BRADEN, RIGHT? YEAH.

OH, I'M SORRY.

YEAH, I WAS JUST CURIOUS.

UM, I MEAN I KNOW IT'S BEEN SLIGHTLY, WE HAVEN'T, YOU KNOW, HAD A HUNDRED DAYS OF A HUNDRED DEGREES OR WHATEVER, UH, FOR LIKE, FOR PEAK DEMAND, BUT IF WE'RE SEEING LIKE, UM, PEAK DEMAND BEING LOWER, BUT OVERALL LIKE TOTAL ENERGY CONSUMPTION BEING BEING HIGHER,

[01:25:02]

UM, I DON'T KNOW.

I MEAN THAT, THAT HAS IMPLICATIONS FOR DISCUSSIONS WE WERE HAVING EARLIER VERSUS LIKE RATE DESIGN AND OTHER KINDS OF THINGS LIKE THAT.

SO IT'D BE INTERESTING TO KNOW IF LIKE, IF THAT'S BEING DRIVEN BY A PARTICULAR, UM, CUSTOMER CLASS OR, OR SOMETHING.

I'LL TAKE THE NOTE CHAIR AND OKAY.

UH, I WANTED TO GO BACK TO SLIDE SIX, WHICH IS AGAIN, THE, UH, PERCENTAGE OF RENEWABLE THAT THAT WAS, WAS RISING VERY FAST AND THEN FELL OFF AND NOW IT SEEMS TO HAVE STABILIZED.

BUT WHAT ARE WE DOING? DO WE HAVE MORE RFPS OUT LOOKING FOR ADDITIONAL SOLAR AND WIND THAT COULD, WE COULD ADD TO OUR PORTFOLIO TO, TO GET BACK ON TRACK OF OUR INCREASING PERCENTAGE OF RENEWABLES? YEAH, SO THIS IS A, UM, ONE OF OUR FAVORITE TOPICS TO TALK ABOUT, RIGHT? AND YOU'RE LOOKING AT THE SMOOTH LINE WHERE IT PEAKED IN, UH, 2022, AND YOU'RE RIGHT, RIGHT? IT HAS STABILIZED, UM, EVERY EFFORT OF OUR, OUR GEN PLAN, UM, FOCUSES ON TRYING TO TURN THE TIDE AND, AND HAVE THIS GO BACK UPWARD.

UM, AND YES, THE RENEWABLE RFPS, THE, YOU KNOW, UM, UH, AND, AND ESSENTIALLY, UM, THE, THE GEOTHERMAL PILOT, UM, A NUMBER OF DIFFERENT EFFORTS, UH, UTILIZING OUR, OUR NACODOCHES, UM, UH, RESOURCE MORE, UM, VARIOUS ITEMS ALL ARE KIND OF GETTING LINED UP TO TRY TO SHIFT THE TIDE HERE.

UM, THE PROBLEM, OR ONE OF THE PROBLEMS, AS YOU KNOW, IS THAT OUR CARBON FREE ENERGY JUST SIMPLY ISN'T GOING AS FAR.

SO NOT ONLY DO WE HAVE LOAD GROWTH HAPPENING AT THIS TIME, BUT ALSO WE'RE SEEING, UM, INCREASED CURTAILMENTS DURING CERTAIN SEASONS AND, UM, FOR, FOR VARIOUS REASONS.

SO, UH, YOU KNOW, SAME ANSWER AS, AS IT OFTEN IS, IS, UM, CONTINUING TO LOOK FOR, UH, RENEWABLE RESOURCES TO GET THE MOST OUT OF THE RENEWABLE RESOURCES THAT WE DO HAVE, UM, AND, UH, YOU KNOW, HELP HELP THAT CARBON FREE PERCENTAGE OF LOAD TO GO BACK UP, RIGHT? BECAUSE AS OUR LOAD GROWS, IF, IF OUR PORTFOLIO OF RENEWABLE STAYS THE SAME, THAT'S, THAT'S WHAT WE'RE SEEING HERE.

UM, SO WE'VE, WE'VE GOTTA SOMEHOW ADD TO THE RENEWABLES AND THE GEOTHERMAL IS A GREAT PROJECT, BUT IT WOULD JUST BE A DROP IN THE, THE BARREL IF IT, IF IT SUCCEEDS AT, I FORGET, IT'S FIVE MEGAWATT CAPACITY, SO RIGHT AT THIS STAGE.

CORRECT.

ARE THERE, ARE THERE POTENTIAL FOR SOLAR OR WIND IN OTHER LOCATIONS THAT, THAT AREN'T TRANSMISSION CONSTRAINED AS MUCH? SO, UM, YOU'LL RECALL THE RENEWABLE RFP THAT WE, UH, PUT OUT DURING THE RESOURCE GEN PLAN.

UM, WE GOT A LOT OF OFFERS THERE, BUT NOT MANY THAT WERE IN LOCATIONS AS YOU JUST DESCRIBED, THAT WOULD BE BENEFICIAL FROM A, TO, TO COMBAT THE CONGESTION.

UM, AND THEN THE, THE, YOU KNOW, ONES THAT WE WERE, HAVE BEEN NEGOTIATING WITH HAVE BEEN RUNNING TO MORE AND MORE UNCERTAINTY, UM, WITH, UH, THE, THE CHANGES THAT ARE COMING OUT, UM, AND THE MORE FIRM STANCES FROM THE FEDERAL ADMINISTRATION.

SO IT'S GOING TO BE REALLY HARD, UM, AT THE MOMENT.

UH, BUT THAT DOESN'T MEAN WE'RE STOPPING LOOKING.

AND SO WE'LL DO ANOTHER, UM, ALL RESOURCE RFP, UM, WE'LL CONTINUE TO LOOK TO PROMOTE OUR, UH, CUSTOMER ENERGY SOLUTIONS, DISTRIBUTED ENERGY RESOURCES.

WE'LL CONTINUE TO TRY TO RELIE ALLEVIATE SOME OF THE ISSUES WITH THE BATTERIES, ALL OF THOSE TOOLS TOGETHER.

UM, BUT IT WILL TAKE A LITTLE BIT OF TIME TO START TO SEE THIS BUMP BACK UP IN THE RIGHT DIRECTION.

I, IS THERE A TIMELINE FOR THE NEW RFP OR IS THAT ONGOING? OH NO.

UH, WE ANTICIPATE THAT IT'LL GO OUT IN THIS FALL.

I DON'T HAVE AN EXACT TIMELINE YET.

ALRIGHT, I THINK I WAS ON SLIDE 11.

GREAT.

UM, SO THIS IS BACK TO ELECTRIC VEHICLE CHARGING STATION OPERATIONS.

THE PLUGIN EVERYWHERE NETWORK CONTINUES TO HAVE HIGH USAGE.

WE'RE AVERAGING NEARLY 36, UH, THOUSAND CHARGING SESSIONS PER MONTH.

AND OUR PEAK USAGE CONTINUES TO BE BETWEEN 9:00 AM AND 2:00 PM WITH THE AVERAGE, UH, CHARGING TIME OF TWO HOURS AND 49 MINUTES.

QUESTION.

YES SIR.

ON THAT, ON, UM, THAT SYSTEM DOESN'T CURRENTLY PENALIZE PEOPLE FOR SITTING THERE AFTER THEY'RE DONE CHARGING.

DOES IT? IT DOES.

DOES IT PENALIZE PEOPLE FOR SITTING THERE AFTER CHARGING? NO.

NO.

LIKE SO IF YOU'RE LIKE, IF, YEAH, IF YOU CHARGE, IF YOU'RE LIKE IN A, THE SUPERCHARGING NETWORK, IT IS DONE CHARGING, I THINK IT CHARGES YOU A DOLLAR A MINUTE OR SOMETHING LIKE FOR, DO YOU WANNA COME ANSWER? ALL RIGHT.

UH, WE'RE GONNA PULL RICHARD GENESEE UP TO ANSWER YOUR QUESTION.

UM, ONE OF THE CHANGES THAT WE ARE, UH, CONSIDERING AND, AND ACTUALLY IN THE PROCESS OF IMPLEMENTING IS A CHARGE THAT WILL BE, UH, AFTER A CERTAIN PERIOD WHEN SOMEONE HAS SAT, IT'S A CALLED AN IDLING CHARGE, AND IT WILL BE IMPLEMENTED FOR THOSE WHO SIT AT THE, UM, CHARGER WHILE NOT CHARGING AT THE DC FEST CHARGER OR ALL OF THEM? ALL OF THEM.

[01:30:03]

ALL OF THEM, OKAY.

BUT REMEMBER IT ALSO WE, YOU KNOW, WOULD ONLY APPLY TO THE ONES THAT, UM, THAT WE ARE OWNING AND OPERATING, WHICH ARE 18% OF THE TOTAL FOR THE LEVEL TWOS AND A HUNDRED PERCENT OF THE DC FASTS AT THIS POINT.

SO WOULD THE, THE LEVEL TWOS THAT ARE NOT UNDER AUSTIN ENERGY, SAY THEY'RE AT A WORKPLACE OR SOMETHING AND PEOPLE JUST CHARGE WHEN THEY GET TO WORK, THEY WOULDN'T BE REQUIRED TO UN UNCHARGE AND MOVE THEIR VEHICLE AT NOON OR SOMETHING? IS THAT YEAH, WE WOULD'VE TO WORK, I MEAN, COMMUNICATE THAT AND WORK ON THAT WITH THE PEOPLE, UH, THE CUSTOMERS WHO ACTUALLY OWN AND OPERATE THAT CHARGER.

SO THAT WOULD BE AT THEIR DISCRETION IF, IF THEY WANTED TO JUST ALLOW AN EMPLOYEE TO STAY PLUGGED IN.

YEAH, UNDERSTOOD.

THAT WOULD BE OKAY.

WE HAVEN'T WORKED OUT ALL THE DETAILS OF THAT, BUT THAT WOULD BE, THEY WOULD HAVE, UM, A SIGNIFICANT ROLE IF NOT THE OVERARCHING ROLE IN DETERMINING THAT FOR THEIR CUSTOMERS.

AND OUR CONCERN IS, IS, IS MANAGING THE, THE EFFECTIVENESS OF THE, THE PUBLIC FACING CHARGERS, BE THEY FAST CHARGE OR LEVEL TWO? THAT'S CORRECT.

THANK YOU RICHARD.

ALL, IT'S ALSO ON THE HOURS ARE NINE TO TWO, WHICH PRETTY WELL GOES WITH THE, UH, SUN RISING AND BEFORE THE AFTERNOON AIR CONDITIONING COMES ON, SO THAT, THAT LOOKS LIKE A GOOD AVERAGE.

I THINK THOSE NUMBERS HAVE BEEN AROUND THAT TIMEFRAME FOR A LONG TIME.

AND THAT'S REPRESENTING A LOT OF WORKPLACE CHARGING, RIGHT? YES.

YEAH, RICHARD IS CONFIRMING THAT.

ALL RIGHT, I'M GONNA MOVE ON TO THE, MY LAST AND FINAL SLIDE.

UM, ALL RIGHT, SO AS SHOWN BY THE BARS ON THE TOP OF THIS SLIDE, OUR DISTRIBUTION RELIABILITY METRICS CONTINUE TO REMAIN WELL BELOW TEXAS AVERAGES.

REMEMBER, LOWER NUMBERS ARE BETTER.

IT'S WHERE WE WANNA BE.

IT MEANS FEWER OUTAGES AND SHORTER WHEN THEY DO OCCUR.

UM, OUR TREND LINES, HOWEVER, ARE SHOWING THE IMPACTS OF INCREASED STORM RESTORATION AND REPAIRS.

YOU MAY OR MAY NOT RECALL.

WE HAD A FAIRLY WET APRIL, UH, WE HAD SOME THUNDERSTORMS AND LIGHTNING DURING THAT AND IN MAY TOO AT TIMES.

UM, IT'S IMPORTANT TO NOTE, HOWEVER, THAT THE MAJOR EVENT DAYS ASSOCIATED WITH A MICROBURST STORM ARE NOT INCLUDED IN THESE NUMBERS.

UM, AT THIS TIME THE QA QC ANALYSIS IS ONGOING FOR THAT EVENT, AND THEY MAY AFFECT FUTURE RELIABILITY METRIC REPORT OUTS.

ALL THAT SAID, OUR TEAMS CONTINUE TO FOCUS ON DEVELOPING THE COMPREHENSIVE DISTRIBUTION RESILIENCE PLAN FOR LATER THIS YEAR, WHICH WE'LL HAVE A DIRECT LINK TO THE NUMBERS THAT YOU SEE HERE.

AND THEN THAT WRAPS UP, UM, THIS QUARTER'S UPDATE.

AND I'LL TAKE ANY REMAINING QUESTIONS YOU HAVE.

THANK YOU SO MUCH.

TO FUTURE AGENDA ITEMS. I HAVE ON MY LIST THAT, UH, COMMISSIONER WHITE HAD REQUESTED SOME BACKGROUND INFORMATION ON THE ECONOMICS OF THE, THE REMOTE PROJECTS.

OKAY, SO THAT TAKES US

[FUTURE AGENDA ITEMS]

AND THEN COMMISSIONER RHODES HAD ASKED ABOUT INFORMATION ON THE MAKEUP OF THE PSA AND, UH, FOR LACK OF A BETTER TERM, THE VOLATILITY ASSOCIATED WITH EACH OF THOSE COMPONENTS.

GOALS AND, UM, I'M JUST THINKING THAT NOT THIS YEAR, BUT NEXT YEAR OR THE FUTURE YEARS, WE COULD SEE A REAL FINANCIAL IMPACT AND HAVING LESS PEOPLE WANT TO PARTICIPATE IN THE PROGRAM.

ANYTHING ELSE? UH, I HAD SOME THINGS THAT I WOULD LIKE TO SEE IN THE FUTURE, BUT SHOULD I BRING THEM UP NOW OR SHOULD I SEND THEM TO, UH, CHAIR TODD IN WRITING ALONG TO BE SHARED WITH THE GROUP? I'M NOT SURE THE BEST WAY TO GO ABOUT THIS.

UH, YOU CAN SHARE NOW.

UH, WELL TWO THINGS.

UM, WITH THE EVENTS IN WASHINGTON WIPING OUT THE, UM, TAX CREDIT FOR SOLAR, I, I WOULD, WAS WONDERING IF THEY COULD GET A STAFF REPORT ON THE IMPACT ON OUR NEW, UH, SOLAR STANDARD OFFER.

I, YOU KNOW, THAT PROGRAM IS, IS CRITICAL TO OUR LOCAL SOLAR

[01:35:01]

SO I'D ASK FOR THE STAFF TO LOOK AT THAT AND, AND REPORT ON THAT IF POSSIBLE.

AND AS A SECOND ITEM, UM, LOOKING AT THE COMMUNITY SOLAR PROGRAM AS IT'S BEING DEVELOPED, UH, I'M LOOKING AT THAT AS A POSSIBLE SOURCE OF REVENUE THAT COULD BE DIRECTLY TIED TO SORT OF BACKFILL THE LACK OF, OF TAX SUPPORT FOR A STANDARD, STANDARD SOLAR OFFER.

AND MAYBE JUST, UH, POSITION THAT AS AN EUC DISCUSSION AT THIS POINT IN A FUTURE MEETING.

IS THAT POSSIBLE? I'VE TAKEN YOUR REQUEST.

OKAY, THANK YOU.

AND I THINK ONE OTHER THING, UH, COMMISSIONER RHODE ALSO ASKED ABOUT, UH, WELL YOU, YOU WERE GONNA SEND SOME NOTES OUT ON WHY THE PEAK WAS GOING DOWN, BUT THE CONSUMPTION WAS GOING UP.

YEAH, I WAS JUST CURIOUS HOW, HOW THAT BREAKDOWN IF THAT WAS A PARTICULAR CUSTOMER CLASS.

'CAUSE I THINK IT, BECAUSE BEFORE WHEN WE WERE TALKING ABOUT LIKE RATE DESIGN FOR RESIDENTIAL, SOMETIMES IT'S, IT'S EASY TO FOCUS ON THAT 'CAUSE THAT'S WHAT MOST OF US PAY.

BUT IF IT'S, IT WAS KIND OF GOING IN THE OPPOSITE DIRECTION, IT WAS, HEY, YOU KNOW, FECA IS GOING DOWN AND VOLUME METRIC WAS GOING UP.

SO JUST WANTED TO UNDER, UH, BETTER UNDERSTAND LIKE IF THAT WAS A PARTICULAR CUSTOMER CLASS THAT WAS, THAT WAS DRIVING THAT OR SOMETHING.

JUST SO WE HAD BETTER INFORMATION ABOUT HOW TO THINK ABOUT RATES AND OTHER, OTHER TYPES OF THINGS.

IS, IS IT POSSIBLE ALONG THAT SAME LINE THAT, THAT THE BATTERIES IN ERCOT HAVE ARE HAVING AN EFFECT? I MEAN, WE DON'T HAVE OUR BATTERY UP AND RUNNING YET, BUT YOU KNOW, WE'RE SEEING SIX GIGAWATTS OF PEAK OR POTENTIAL PEAK BEING SAW BEING FED BY BATTERIES.

IS, IS THAT PART OF THE CHANGING? I THINK THAT WAS, THAT WAS, I THINK THOSE NUMBERS ARE JUST FOR AUSTIN ENERGY, NOT FOR ACOT.

I, I WOULDN'T THINK YOU WOULD.

THAT WOULD COME INTO PLAY HERE.

ANYTHING ELSE FROM ANYONE? ALRIGHT, WELL THERE NO OBJECTIONS AND I THINK WE'RE ADJOURNED.

IF, IF YOU WOULD PLEASE STATE THE TIME FOR THE RECORD.

IT IS SEVEN 40.