* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.
          [00:00:03]
          COMMISSION FOR NOVEMBER 10TH, 2025. 
          [CALL TO ORDER ]
IT'S CALLED A MEETING TO ORDER. 
          IT IS 6 0 2. 
          FIRST WE'LL TAKE ROLL CALL. 
          VICE CHAIR WHITE. 
          DO WE HAVE HER ON YET? NO. 
          COMMISSIONER ALVAREZ HERE. 
          HERE. 
          OKAY. 
          COMMISSIONER MELANIE. 
          WELCOME BACK. 
          COMMISSIONER BENAVIDEZ. 
          WE'LL SEE MAYBE SOON HERE. 
          COMMISSIONER BLACKBURN. 
          WE SEE HIM. 
          REMOTE COMMISSIONER BRADEN. 
          COMMISSIONER. 
          GILLETTE COMMISSIONER. 
          COURTESY IS EXCUSED. 
          ABSENCE. 
          COMMISSIONER REED. 
          WE SEE. 
          AND COMMISSIONER RHODES IS HERE. 
          UM, SO WE HAVE THE ROLE. 
          UM, THERE'S BEEN A CHANGE. 
          I NEED TO MAKE AN ANNOUNCEMENT FOR ITEM 10, THE STAFF BRIEFING ON THE FOURTH QUARTER FINANCIAL REPORT. 
          WE'LL BE GIVEN BY ADAM MCINROY AND NOT STEPHANIE ALTO. 
          SO WITH THAT, WE'RE CALLED TO ORDER ANY PUBLIC COMMUNICATION? NO. 
          NO. 
          OKAY. 
          APPROVAL OF THE MINUTES. 
          [APPROVAL OF MINUTES ]
ANY COMMENTS ABOUT THE MINUTES FROM LAST MEETING? NONE. 
          DO I HAVE A MOTION? DO I HAVE A SECOND? SECOND. 
          COMMISSIONER BRADEN. 
          ALL APPROVED. 
          OKAY, NOW WE SEE CYRUS. 
          OKAY. 
          APPROVED. 
          THANK YOU. 
          OKAY, DISCUSSION AND ACTION ITEMS. 
          [Items 2 - 6, 8 & 9]
WE HAVE TWO THROUGH NINE. 
          ANYONE WANT TO PULL ANY OF THESE? ? NONE. 
          OKAY. 
          AL? NO, I'M GONNA PULL SEVEN JUST 'CAUSE IT'S SUCH A HUGE RAUL. 
          IM SORRY WE COULDN'T HEAR YOU. 
          NUMBER, UH, THAT RATTLE IS THAT ONE? UH, OH, NUMBER SEVEN. 
          NUMBER SEVEN. 
          OKAY. 
          ANY OTHERS? OKAY, SO LET'S GO THROUGH AND VOTE ON 2, 3, 4, 5, 6, 8, AND NINE. 
          UH, COMMISSIONER BETIS HAS JUST JOINED. 
          WELCOME. 
          SO AGAIN, 2, 3, 4, 5, 6, 8. 
          AND AYE, DO WE HAVE A MOTION? I'LL MOVE APPROVAL. 
          HAVE A SECOND, SECOND, SECOND WITH DR. RHODES. 
          ALL IN FAVOR SAY AYE. 
          AYE. 
          AYE. 
          AYE. 
          LOOKS LIKE UNANIMOUS. 
          OKAY. 
          NUMBER SEVEN. 
          [7. Recommend approval authorizing a contract for security fencing-related products and services for  Austin Energy with Tony Parent Enterprises, Inc. d/b/a Allied Fence & Security, Viking Fence Co  Ltd, and Woolery Custom Fence Co, each for an initial term of one year with up to two one-year  extension options in amounts not to exceed $ 38,310,000, divided among the contractors.  Funding: $12,000,000 is available in the Capital Budget of Austin Energy. ]
COMMISSIONER ALVAREZ, YOUR QUESTION. 
          SORRY, MY, MY SCREENS ARE LIKE, THEY HAVE A MIND OF THEIR OWN , WHICH MEANS I PROBABLY HAVE TOO MANY OPEN AT THE SAME TIME. 
          UM, YEAH, WELL OBVIOUSLY THIS IS A PRETTY LARGE, UM, EXPENDITURE, RIGHT? 38 MILLION AND IT'S FOR FENCING. 
          SO THERE'S ONE QUESTION THERE IS HOW MUCH FENCING ARE WE DOING THAT WE NEED $38 MILLION FOR? AND THAT, AND THEN THE OTHER QUESTION IS, IF WE HAVE 12 MILLION IN THE AVAILABLE CAPITAL BUDGET, WHERE'S THE OTHER 26 MILLION COMING FROM? SO THAT'S JUST KIND OF JUST OFF THE TOP OF MY HEAD. 
          JUST, AND THEN, UM, AND THEN DOES THIS JUST GO TO ONE CONTRACTOR, RIGHT? 'CAUSE IT'S A LOT OF MONEY TO GO TO ONE CONTRACTOR. 
          I PRESUME THAT THERE'S MULTIPLE FENCING COMPANIES IN AUSTIN. 
          I DON'T. 
          IT MIGHT BE A VERY SPECIFIC, UM, KIND OF FENCING, UH, THAT WE'RE REQUESTING. 
          BUT, UH, THOSE ARE KIND OF THE, THE INQUIRIES I HAVE. 
          COMMISSIONER TUTTLE. 
          UM, SO THIS CONTRACT IS FOR THREE SEPARATE FENCING COMPANIES, VIKING FENCE, ARY CUSTOM FENCE AND ALLIED FENCE. 
          OVER A THREE YEAR PERIOD, APPROXIMATELY 12 MILLION, UM, UH, 12 MILLION OVER THREE YEARS DIVIDED BETWEEN THOSE THREE CONTRACTORS. 
          AND IT IS FOR SECURITY FENCING AT, UM, THE GENERATION STATIONS. 
          SO DECKER SAND HILL, AS WELL AS, UH, THE DECKER STEEL YARD. 
          UH, THOSE ARE JUST THE THREE THAT ARE SLATED FOR NOW, PLUS 
          [00:05:01]
FUTURE SUBSTATIONS. 
          AND IT'S TO BE IN COMPLIANCE WITH NERC REQUIREMENTS. 
          AND I'M SORRY, I'M JOHN DAVIS, DIRECTOR OF FINANCE. 
          SO IT'S MULTIPLE COMPANIES AND, UM, MULTIPLE COMPANIES, MULTIPLE YEARS. 
          AND IS THERE LIKE, I GUESS, YEAH, I'M JUST WONDERING WHY ALL OF IT AT ONCE, YOU KNOW WHAT I MEAN? IT JUST, AGAIN, IT SEEMS LIKE A BIG JUMP FROM THE 12 MILLION WE HAVE IN THE BUDGET TO 38 MILLION. 
          AND SO HOW DOES THAT WORK WHEN WE HAVE 24 MILLION MORE THAT WE'RE SPENDING THAN OBVIOUSLY THAT WAS, THAT IS CURRENTLY IN THAT CAPITAL BUDGET. 
          AND WHERE DOES THAT MONEY COME FROM? WELL, THE BUDGET IS, UM, IT, IT'S FOR A CONTRACT TO SPREAD OVER THREE YEARS FOR THREE SEPARATE CONTRACTORS. 
          SO THIS IS FOR CONTRACT AUTHORIZATION, RIGHT? SO THIS TO AT LEAST ALLOW US THE ABILITY TO SECURE CONTRACTORS TO CONSTRUCT THAT FENCING OVER THREE YEARS. 
          AND IT'S ALSO FOR FUTURE SUBSTATION REQUIREMENTS TO MEET NERC SECURITY STANDARDS. 
          OKAY. 
          SO IT BASICALLY BECOMES 12 MILLION A YEAR, CORRECT? I'M SORRY, YEAH. 
          THREE YEARS. 
          CORRECT. 
          SORRY. 
          OKAY, NOW IT MAKES SENSE. 
          I WAS TRYING TO FIGURE OUT A, LIKE HOW DID WE, UH, MAKE SUCH A HUGE JUMP, BUT UH, IF WE'RE BUDGETING THAT ANNUALLY, THEN THAT JUMP YES. 
          THAT BEGINS TO JIVE. 
          YEAH. 
          SO, UM, I THINK THAT'S ALL THE QUESTIONS I HAVE. 
          OKAY. 
          THANK YOU. 
          OKAY, THANKS. 
          AND IF THERE'S NO OTHER QUESTIONS, I'LL, I'LL MOVE APPROVAL. 
          OTHER QUESTIONS? I'M SET. 
          NO. 
          OKAY. 
          DO WE HAVE A MOTION FOR NUMBER SEVEN? OH, RAUL DID REL OKAY. 
          DO I HAVE A SECOND? I'LL DO IT. 
          COMMISSIONER BRADEN SECOND. 
          ALL IN FAVOR SAY AYE. 
          AYE. 
          CYRUS, WE DON'T SEE YOUR HAND. 
          OKAY. 
          AYE. 
          THANK YOU SIR. 
          SEVEN IS APPROVED. 
          NOW WE'RE UP TO STAFF 
          [10. Staff briefing on the Fourth Quarter Financial Report by Stephanie Koudelka, Finance Director.  ]
BRIEFINGS NUMBER 10, STAFF BRIEFING ON FOURTH QUARTER FINANCIALS BY ADAM. 
          THANK YOU. 
          GOOD EVENING. 
          ALRIGHT, GOOD EVENING, COMMISSIONERS. 
          MY NAME IS ADAM MCINROY. 
          I'M AUSTIN ENERGY'S, ACTING SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER. 
          IT'S MY PLEASURE THIS EVENING TO WALK YOU THROUGH OUR QUARTERLY FINANCIAL REPORT. 
          AND SINCE THIS IS THE FOURTH, FOURTH QUARTER, THIS IS FOR THE FULL FISCAL YEAR OF 2025. 
          SO IN OUR PRESENTATION, I'LL WALK YOU THROUGH, UM, THE FOLLOWING ITEMS, A HIGH LEVEL SUMMARY OF OUR FINANCIAL HEALTH, A DISCUSSION OF OUR BUDGET TO ACTUAL, UH, EXPENDITURES, OUR FINANCIAL STATEMENTS AND OUR COMPETITIVE METRICS. 
          THROUGHOUT, I THINK YOU'LL SEE THREE THEMES PLAYED OUT, UH, WHICH I'LL CALL ATTENTION TO AT EACH TIME. 
          EXCUSE ME. 
          ONE IS THAT WE HAD A FAIRLY WEATHER, NORMAL FISCAL YEAR, 2025. 
          AND SO YOU'LL SEE MANY RESULTS ARE CLOSE TO BUDGET OR CLOSE TO 20, 24 RESULTS, WHICH WAS ALSO A FAIRLY BUDGET NORMAL YEAR. 
          YOU'LL ALSO SEE THAT WE'RE MAKING POSITIVE IMPROVEMENTS TO OUR FINANCIAL HEALTH AND OUR FINANCIAL HEALTH METRICS, BUT WE HAVE WORK LEFT TO DO TO GET TO OUR TARGETS. 
          AND FINALLY YOU'LL SEE AN ITEM APPEAR, UH, THROUGHOUT, UH, IN MANY PLACES, WHICH IS A $30 MILLION TRANSFER THAT WE WERE ABLE TO MAKE TO OUR POWER SUPPLY STABILIZATION FUND, UH, OUR RESERVE FUND THERE. 
          AND THAT WILL APPEAR IN DIFFERENT PLACES IN DIFFERENT WAYS, AND I'LL CALL ATTENTION TO THAT IN A WAY IT'S A NOT VERY OFTEN RECURRING AND NON-CORE ITEM IN THESE, UH, RESULTS. 
          SO MOVING ON TO THAT HIGH LEVEL SUMMARY. 
          UM, WE HAVE HERE SOME FOUR KEY DATA POINTS THAT ENCAPSULATE OUR SHOW, A LENS ON OUR FINANCIAL HEALTH. 
          ON THE TOP LEFT, WE CAN START WITH OUR OPERATING RESULTS. 
          UH, HERE, THIS IS AN INCOME TYPE METRIC AND WE FIND THAT OUR OPERATING INCOME FOR THE FISCAL YEAR WAS $7 MILLION ABOVE OUR BUDGET, OUR BUDGETED, UH, REVENUE. 
          UH, WHAT WE FIND AGAIN THOUGH IS THAT THAT $30 MILLION TRANSFER TO THE POWER SUPPLY STABILIZATION RESERVE IS RECOGNIZED AS REVENUE. 
          AND SO WITHOUT THAT SORT OF NON-CORE COMPONENT, THIS WOULD'VE BEEN, UH, INCOME LOWER THAN BUDGET, UH, BY ABOUT, UM, 23 MILLION. 
          MOVING ON TO THE TOP RIGHT, UH, WE DISCUSSED OUR BOND RATINGS HERE. 
          UH, WE WERE REAFFIRMED AT AA MINUS BY S AND P, UH, PRETTY RECENTLY IN OCTOBER OF 2025. 
          AND THAT DOES REMAIN BELOW OUR AA TARGET. 
          ONE THING I LIKE TO POINT OUT ABOUT OUR BOND RATING IS IT'S NOT JUST ABOUT FINANCIAL HEALTH. 
          THIS REALLY DOES FOR ME, UM, CONNECTS TO OUR MISSION IN IMPORTANT WAYS. 
          SO HIGHER RATINGS HELP US ISSUE DEBT, UH, AT LOWER RATES, WHICH HELPS OUR AFFORDABILITY METRICS AND HIGHER RATINGS ALSO INDICATE TO FINANCIAL PARTNERS THAT WE ARE A GOOD, UH, COUNTERPARTY TO DO LONG-TERM BUSINESS WITH. 
          AND THIS CAN AFFECT OUR ACCESS TO, UH, RENEWABLE PROJECTS AND THINGS LIKE THAT. 
          SO HAVING A HIGH RATING REALLY HELPS US ACHIEVE OUR MISSION AND NOT JUST REMAIN FINANCIALLY SOUND. 
          MOVING TO THE BOTTOM LEFT, WHEN WE, UH, CHECK OUR FINANCIAL POLICIES, WE FIND THAT WE'RE BROADLY IN COMPLIANCE WITH MOST OF THEM. 
          UH, SOME OF THE INDIVIDUAL LINE ITEM, UH, RESERVE REQUIREMENTS, 
          [00:10:01]
WE ARE NOT YET AT TARGET. 
          SO AGAIN, THIS IS AN AREA WHERE WE'RE BROADLY IN COMPLIANCE, WE'RE IMPROVING, BUT WE HAVE WORK TO DO. 
          AND OUR PLAN FOR ACHIEVING BOTH OUR BOND RATING TARGET AS WELL AS OUR FINANCIAL POLICY TARGETS IS LARGELY, UM, THE FINANCIAL PLAN THAT RUSTY MANIA, UH, AND STEWART LAID OUT FOR YOU. 
          UH, A FIVE YEAR PLAN WITH 5% BASE RATE INCREASES, THAT IS LIKELY TO GET US TO OUR FINANCIAL GOALS. 
          MOVING TO THE BOTTOM RIGHT FOR OUR POWER SUPPLY ADJUSTMENT, UH, WE WERE ABLE TO DECREASE THE POWER SUPPLY ADJUSTMENT RATE FIVE TIMES OVER THE YEAR BY 5% EACH TIME. 
          SO WE HOPE THAT THAT'S A GOOD OUTCOME FOR OUR CUSTOMERS AND WE STILL GOT TO THE END OF THE YEAR WITH $105 MILLION IN AN OVER COLLECTED BALANCE IN THOSE ACCOUNTS. 
          SO WE CAN GET SOME DEEPER INSIGHT INTO THAT RATINGS PICTURE AND OUR OVERALL FINANCIAL HEALTH, UH, BY LOOKING AT SOME QUANTITATIVE METRICS. 
          THESE ARE FOUR OF THE BIG ONES, AND AGAIN, I THINK YOU'LL SEE THAT THESE ARE IMPROVING, BUT THAT WE STILL HAVE WORK TO DO TO GET TO TARGETS. 
          UH, MOVING TO THE FIRST ONE ON THE LEFT, THAT'S TODAY'S CASH ON HAND, AND Y'ALL HEARD A LOT ABOUT THIS OVER THE PAST COUPLE YEARS AS WE'VE BEEN MANAGING THIS SITUATION. 
          WE DO HAVE A TARGET OF 200 DAYS OF CASH ON HAND AND WE'RE APPROACHING THAT WITH 195 DAYS OF CASH RIGHT NOW. 
          HOWEVER, THAT ALSO INCLUDES SORT OF A NON-RECURRING OR NON-CORE PIECE OF INFORMATION, WHICH IS THAT THAT POWER SUPPLY ADJUSTMENT OVER RECOVERY, THE 105 MILLION THAT WE DISCUSSED ON THE LAST SLIDE APPEARS THERE AS DAYS CASH ON HAND. 
          SO IT IS ON HAND, BUT OF COURSE OUR PLAN IS TO RETURN IT TO CUSTOMERS THROUGH POWER SUPPLY ADJUSTMENT RATES AND NOT TO INVEST IT IN OUR SYSTEM OR OUR OPERATIONS. 
          THAT AMOUNT COMES TO ABOUT 33 DAYS. 
          AND SO WITHOUT THAT AMOUNT, WE'D BE AT 162 DAYS, WHICH IS PRETTY SUBSTANTIALLY BELOW OUR 200 DAYS. 
          THAT IS A LARGE IMPROVEMENT YEAR OVER YEAR, HOWEVER, SO AGAIN, IT REPRESENTS IMPROVEMENT, BUT, UH, ROOM TO GET BETTER. 
          MOVING TO OUR RIGHT, WE HAVE OUR DEBT SERVICE COVERAGE, AND HERE WE'RE ACTUALLY ON TARGET AT 2.5 TIMES. 
          MOVING TO THE RIGHT, AGAIN, WE COME TO AN INCOME LIKE METRIC, WHICH IS OUR OPERATING MARGIN. 
          UH, THIS KIND OF MEASURES OUR EFFICIENCY, UM, IN, UH, RETURNING INCOME VERSUS SALES. 
          UM, HERE WE HAVE A TARGET OF BEING GREATER THAN 10% AND WE FAR EXCEED THAT TARGET IN THIS YEAR AT 21%. 
          BUT AGAIN, THERE'S AN ITEM HERE WHICH IS SORT OF NON-RECURRING. 
          THERE'S A COMPONENT OF THIS CALCULATION THAT'S REALLY ABOUT AN ACTUARIAL ADJUSTMENT FOR RETIREMENT BENEFITS AND RETIREMENT BENEFITS WERE UPDATED IN ACTUARIAL TERMS AND BECAUSE OF PLANNED CHANGES, UH, DURING THE LAST YEAR, AND THAT ADDS ABOUT 10% TO THIS CALCULATION. 
          SO IF WE TAKE OUT THAT KIND OF NON-RECURRING PIECE, WE'D BE AT 11% HERE PRETTY CLOSE TO TARGET. 
          FINALLY, WE COME TO ONE OF THE SLOWEST MOVING INDICATORS, WHICH IS OUR DEBT TO CAPITALIZATION. 
          SO THIS IS REALLY A BALANCE SHEET INDICATOR, NOT JUST A FLOW INDICATOR. 
          SO IT MOVES MORE SLOWLY AND IS KIND OF, UH, TAKES EFFORT TO TRUE UP HERE. 
          THIS IS LIKE GOLF. 
          WE'D LIKE A LOWER NUMBER, UH, VERSUS, UM, A HIGH NUMBER AND WE'D LIKE TO BE BELOW 50%. 
          WE SEE TODAY THAT WE'RE AT 57% AND THAT'S, UH, ABOVE TARGET. 
          AND AGAIN, THIS IS FAIRLY SLOW MOVING. 
          THIS IS KIND OF A METRIC LIKE RESERVES WHERE IT MIGHT, UM, JUMP, UH, QUICKLY OUT OF BOUNDS AND THEN TAKE TIME AND STEADY PROGRESS TO GET BACK INTO BOUNDS. 
          AND AGAIN, THE BEST WAY WE HAVE TO DO THAT IS TO FOLLOW OUR FINANCIAL PLAN. 
          SO THOSE METRICS INFLUENCE, UH, RATING AGENCIES DECISIONS, BUT THEY DO MAKE A HOLISTIC ASSESSMENT. 
          AND WE ACTUALLY GOT A VERY SHARP, UM, AND FRESH, UH, INSIGHT INTO THOSE ASSESSMENTS BECAUSE, UH, WE WERE RECENTLY IN THE MARKET ISSUING BONDS. 
          SO EARLIER THIS MONTH WE ISSUED $425 MILLION OF DEBT, UH, THAT WAS RECEIVED VERY WELL BY THE MAR MARKET AND WAS A VERY SUCCESSFUL SALE ON THE WAY TO THAT ISSUANCE. 
          UM, EACH OF THE MAJOR RATING AGENCIES REVIEWED US, AND YOU CAN SEE THAT THEY REAFFIRMED US AT THE LEVELS THAT THEY HAD US AT BEFORE. 
          SO S AND P, FOR EXAMPLE, REAFFIRMED OUR AA MINUS. 
          UM, AGAIN, THAT'S A GOOD CREDIT RATING. 
          IT'S JUST WE HAVE AN A TARGET OF A DOUBLE A. 
          SO WHEN THE RATING AGENCIES, UH, ISSUED THOSE RATINGS THAT DID SUPPORT A SUCCESSFUL BOND SALE, UH, THEY CITED MANY STRENGTHS THAT WE HAVE, UH, WHICH WE AGREE WITH, INCLUDING OUR RATE FLEXIBILITY, UH, LARGELY OUR POWER SUPPLY ADJUSTMENTS ABILITY TO ADJUST ITSELF INTRA YEAR, UH, TO HELP US NOT OVER RECOVER OR UNDER RECOVER TOO MUCH. 
          AND THEN THE FLEXIBILITY THAT WE'RE INCREASINGLY HAVING TO ISSUE BASE RATE INCREASES, WHICH SHORE UP OUR FINANCES OVER TIME. 
          THEY DID CITE THE IMPROVING FINANCIAL METRICS THEY ALSO WOULD LIKE TO KEEP, UH, TO SEE THEM KEEP IMPROVING. 
          AND THEN THEY ALSO CITE OUR GENERATION PORTFOLIO, WHICH IS, UH, DIVERSE AND IS A LARGE FINANCIAL RISK LITIGANT FOR OUR CUSTOMERS. 
          SOME OF THE DIVERSITY, UH, ASPECTS THAT THEY APPRECIATE ARE THE RENEWABLE COMPONENT AS WELL AS THE DISPATCHABLE COMPONENT OF THE RISK MITIGATION THERE. 
          SO THAT WAS THEIR CURRENT SNAPSHOT. 
          UH, WHEN WE LOOK TO THE FUTURE, UM, THEY ARE KEEPING AN EYE OUT FOR ANY WEAKENING IN OUR FINANCIAL METRICS, ANY SPIKES IN COSTS THAT WE CAN'T MANAGE, WHICH IS, YOU KNOW, A CONCERN ACROSS THE INDUSTRY AND ANY FAILURE TO IMPLEMENT THE 
          [00:15:01]
RATE INCREASES THAT WE'RE PLANNING FOR AND THAT WE KNOW ARE ON OUR PATH TO FINANCIAL HEALTH. 
          ON THE UPSIDE, AS WE LOOK TO RECLAIMING THAT AA, UH, THEY'RE REALLY LOOKING FOR SUCCESSFUL IMPLEMENTATION OF THE RESOURCE PLAN, INCLUDING THE DISPATCHABLE GENERATION, WHICH WILL BE AN IMPORTANT FINANCIAL HEDGE AND JUST SUSTAINING THESE FINANCIAL TRENDS IN FINANCIAL HEALTH. 
          SO MOVING ON FROM OVERALL FINANCIAL HEALTH, WE CAN START TO OFFER A LITTLE INSIGHT INTO SOME HIGHLIGHTS OF REVENUES AND EXPENDITURES FOR THE FISCAL YEAR. 
          UH, A FIRST ANALYSIS THAT WE CAN DO IS LOOKING AT OUR ACTUAL SPENDING VERSUS OUR BUDGETED SPENDING, RIGHT? AND SO THERE'S A, A FAIRLY LARGE GRID OF NUMBERS HERE. 
          UM, AND I'LL, I'LL DRAW OUT A COUPLE OF KEY THEMES. 
          UH, FIRST TO DESCRIBE WHAT WE HAVE. 
          WE HAVE OUR ACTUAL EXPENDITURES AND REVENUES IN THE FIRST COLUMN THERE. 
          WE CAN COMPARE THESE TO OUR BUDGET, UH, WHICH IS IN THE CENTER. 
          AND THEN WE HAVE THE CHANGES, UM, FROM ACTUAL TO BUDGET ON THE RIGHT. 
          AGAIN, WE SEE A FAIRLY WEATHER NORMALIZED HERE. 
          SO A LOT OF THESE ACTUALS ARE FAIRLY CLOSE TO BUDGET, AND SO THERE'S NOT A WHOLE LOT TO COMMENT ON HERE. 
          THAT'S OF NOTE. 
          UM, BUT I WILL, UH, DRAW YOUR ATTENTION, UH, MAYBE TO THE PUNCHLINE. 
          SO ONE OF THE PUNCHLINES HERE IS THE $42 MILLION THAT YOU SEE AS A DEFICIENCY OF, UM, REVENUES TO COVER EXPENSES. 
          SO AGAIN, THIS IS YET ANOTHER INDICATOR THAT WE'VE GOT WORK TO DO TO GET REALLY FINANCIALLY SOUND THAT $42 MILLION DEFICIENCY CAN BE COMPARED TO A $30 MILLION DEFICIENCY THAT WE SORT OF BUDGETED FOR AND ANTICIPATED AT THE BEGINNING OF THE YEAR. 
          THE DELTA THERE IS 12 MILLION. 
          AND SO THAT'S $12 MILLION OF BASICALLY EXPENSE THAT WE DIDN'T BUDGET FOR THAT WASN'T COMPENSATED FOR BY REVENUE. 
          AND WE UNDERSTAND THAT THAT'S LARGELY DRIVEN BY, UH, COSTS RELATED TO THE, UM, MAY MICROBURST RECOVERY. 
          SO IT'S SORT OF AN EXTRAORDINARY COST THAT WASN'T IN THE BUDGET, UH, BUT DOES APPEAR. 
          WE CAN ALSO, UH, DIG IN AND SHOW YOU SOME DETAIL ON SOME OF THE, UH, MAJOR LINE ITEMS OF OUR SPENDING AND INVESTMENT. 
          THE POWER SUPPLY ADJUSTMENT, OF COURSE, IS A MORE VOLATILE COMPONENT THAT'S IMPORTANT TO UNDERSTAND. 
          AND HERE WE SEE THE BUDGETED AMOUNTS BY MONTH. 
          UM, IN THE BLUE, UH, WE ZOOM IN ON THIS BECAUSE THERE IS A SEASONAL SHAPE TO THESE NUMBERS, UH, RELATED TO USAGE AND TEMPERATURES AND HEAT. 
          WE SEE THAT THE ACTUALS WHICH CAME IN IN, UH, GREEN, AGAIN, I WOULD CHARACTERIZE AS FAIRLY CLOSE TO THE BUDGET. 
          WE HAD A FAIRLY WEATHER NORMALIZED YEAR, EVEN THOUGH IT NOW SEEMS PRETTY COOL. 
          UM, AND SO OUR ACTUALS APPROACHED OUR BUDGET FOR OUR POWER SUPPLY NUMBERS. 
          WHAT MIGHT BE MORE INTERESTING IS THE BLACK LINE IS THE REVENUE THAT WE, UH, COLLECTED FROM CUSTOMERS THROUGH THE POWER SUPPLY RATE. 
          AND THAT, UH, IS MEANT TO OFFSET THE COSTS, UM, THAT ARE IN BOTH BLUE AND GREEN. 
          WHAT WE SEE THERE IS THAT THE BLACK LINE WAS WELL ABOVE THE, UH, BLUE AND GREEN IN THE BEGINNING OF THE YEAR, AND THAT WAS PART OF WHAT, UH, ALLOWED US TO OVER RECOVER AND TO ADJUST THE RATE DOWN OVER THE YEAR. 
          SO AS WE MADE THOSE ADJUSTMENTS TO PULL THE POWER SUPPLY ADJUSTMENT RATE DOWN, WE SEE THAT THE BLACK LINE AND THE BARS CONVERGE AND THAT'S WHAT WE WANTED TO SEE. 
          WE WANT THE RATE TO RECOVER THE COSTS, BUT NOT MUCH MORE THAN THE COSTS OVER TIME AGAIN. 
          ALRIGHT, ANOTHER KEY CATEGORY OF SPENDING, UH, CAPTURES THE INVESTMENT IN OUR SYSTEM. 
          AND SO THIS, UH, CAN BE SEEN IN OUR CAPITAL IMPROVEMENT PLAN OR OUR CIP HERE. 
          WE'VE BROKEN OUT SOME OF THE MAIN LINE ITEMS ON THE LEFT AND SHOWN AGAIN, BUDGET VERSUS ACTUAL FOR SOME OF THAT INVESTED INVESTMENT EXPENDITURE HERE. 
          TWO TALL TREES THAT I MIGHT, UH, DRAW YOUR ATTENTION TO ARE TRANSMISSION AND DISTRIBUTION ON THE TRANSMISSION, UH, CATEGORY, WE SAW A SPENDING IN ADVANCE OF THE SPEND PLAN, UH, AND A LOT OF THAT IS DUE TO GOOD INVESTMENT IN SUBSTATIONS AND SUBSTATION UPGRADES. 
          SIMILARLY IN DISTRIBUTION, WE INVESTED MORE THAN WE ANTICIPATED IN THE BUDGET PROCESS. 
          UH, AND AGAIN, THAT'S DUE TO SOME FAIRLY HEALTHY THINGS I WOULD SAY. 
          UM, A PARTICULAR ONE IS THAT WE BUILT UP OUR TRANSFORMER, UM, UH, INVENTORY SO THAT WE CAN BETTER MANAGE SUPPLY CHAIN RISKS AND CUSTOMER NEEDS FOR CONNECTION. 
          LOOKING AT THE RIGHT, THIS SHOWS US HOW WE FUNDED THOSE EXPENDITURES AND UH, AGAIN, WE HAVE TARGETS FOR INVESTMENT AT 50 50 OF ISSUING DEBT TO GIVE US CASH TO INVEST IN THE SYSTEM AND USING RETAINED RATES, UH, TO PAY FOR, FOR UPGRADES. 
          WHAT WE'VE ACTUALLY FOUND IS THAT WE'RE CLOSER TO THAT 57% DEBT RATIO, AND WE LIKE TO BE BACK AT THAT 50 50. 
          TO DO THAT, WE NEED THE CASH AVAILABLE TO INVEST AT THE 50 50 RATIO. 
          AND OUR INCREASING RATES AND OUR FIVE YEAR PLAN ARE IMPORTANT COMPONENTS OF HOW WE'LL GET THERE. 
          SO ANOTHER LENS ON KIND OF FLOWS AND OUR POSITION IS OUR GAP STATEMENTS. 
          UH, SO THESE INCLUDE THE INCOME STATEMENT AND THE BALANCE SHEET STATEMENT, AND AGAIN, THEY, THEY CAN BE VERY DETAILED OR VERY SUCCINCT, AND I'LL TRY TO DRAW OUT SOME KEY TRENDS WHEN LOOKING AT OUR INCOME STATEMENT. 
          UH, 
          [00:20:01]
AGAIN, A FAIRLY WEATHER NORMAL YEAR AS WAS 2024. 
          SO MANY OF THESE NUMBERS ARE CLOSE TO EACH OTHER AND THERE'S NOT A WHOLE LOT TO SEE. 
          UM, SO AGAIN, I'LL DRAW YOUR ATTENTION TO THE PUNCHLINE, WHICH IS THAT NET INCOME NUMBER OF $44 MILLION. 
          UH, THAT'S A POSITIVE RESULT. 
          WE WOULD LIKE TO HAVE NET INCOME VERSUS EXPENSE. 
          UH, BUT AGAIN, 30 MILLION OF THAT IS SORT OF AN ACCOUNTING PHENOMENON FROM A NON-CORE ITEM, WHICH IS THAT PSA RESERVE TRANSFER. 
          WITHOUT THAT, THE NET INCOME WOULD'VE BEEN 14, AND THAT'S SORT OF DECREASING FROM LAST YEAR'S 25. 
          AND WE'D LIKE TO BE SOLID OR INCREASING. 
          SO AGAIN, WE'RE DOING OKAY. 
          WE'RE DO, WE'RE USUALLY IMPROVING, UH, BUT WE WOULD LIKE TO DO BETTER TO BE STABLE IN OUR FINANCES. 
          UH, ON THE RIGHT WE HAVE JUST SOME, UH, SOME CHARACTERISTIC INFORMATION ABOUT OUR SYSTEM AND WE FIND THAT YEAR OVER YEAR WE GREW BY ABOUT 3%, BOTH IN TERMS OF CUSTOMER COUNT AND IN ENERGY USAGE. 
          UH, AND THAT GETS US KIND OF CLOSE TO A NICE ROUND NUMBER OF 575,000 CUSTOMERS. 
          AND YOU CAN SEE THAT THE CUSTOMER COUNT IS, UM, TILTED FAR TOWARD RESIDENTIAL AS WE MIGHT EXPECT, AND THAT THE ENERGY EXPENDITURE IS ACTUALLY TILTED A BIT TOWARD INDUSTRIAL CUSTOMERS. 
          QUICK QUESTION. 
          YEAH, SO ON THE DEPRECIATION EXPENSE, IT'S GONE DOWN FROM 2 24 TO TWO 20, AND I KNOW THAT THE NEW PLAN IS TRYING TO REBUILD CAP, BUT TO ME, IS THAT A GOOD INDICATOR THAT WE'VE BEEN UNDERSPENDING ON CAPEX FOR A WHILE? 'CAUSE THE DEPRECIATION'S GOING DOWN HERE? I, I THINK, I THINK SO. 
          I THINK, UM, YEAH, IT MEANS SORT OF THE CURRENT BOOK OF ASSETS IS ROUGHLY STABLE WHERE WE NEED TO INVEST AND GROW IT. 
          YEAH. 
          OKAY, THANKS. 
          YEP. 
          SO THE INCOME STATEMENT SORT OF CAPTURES FLOWS AND CHANGES. 
          THE BALANCE SHEET CAPTURES MORE A TOTAL POSITION. 
          AND, UH, HERE AGAIN, WE SEE, UH, FAIRLY MODERATE CHANGES VERSUS 2024 WITH MAYBE TWO BIG EXCEPTIONS. 
          SO WE CAN LOOK AT THE CASH AND THE OPERATING RESERVES AND THOSE HAVE BOTH INCREASED RATHER SUBSTANTIALLY. 
          SO YOU CAN SEE THAT IN CASH WE NOW HAVE 347 MILLION VERSUS LAST YEAR'S 286 AND OPERATING RESERVES WERE UP TO 377 VERSUS LAST YEAR'S THREE 13. 
          SO AGAIN, THIS IS ALL VERY GOOD NEWS. 
          WE'RE HEALING, WE'RE IMPROVING. 
          SOME OF THAT IS DUE TO THE, UH, 2% BASE RATE INCREASES THAT WENT INTO EFFECT FOR THE 2024 YEAR. 
          AND WE HOPE TO MAKE FURTHER PROGRESS, BUT WE WANNA BE CAREFUL AND ACKNOWLEDGE THAT THERE'S STILL WORK TO DO. 
          AND THE CHART ON THE RIGHT SHOWS THAT, SO IF YOU PUT TOGETHER THOSE CASH AND RESERVE NUMBERS, YOU GET THE BLUE, THE GREEN BAR ON THE RIGHT, WHICH IS OUR ACTUAL $724 MILLION IN CASH AND RESERVES, THAT 200 DAYS TARGET THAT WE THINK IS THE RIGHT TARGET FOR US IS WOULD BE CLOSER TO $782 MILLION. 
          SO AGAIN, WE STILL HAVE WORK TO DO TO GET TO TARGETS. 
          UH, SO FINALLY, I'LL WALK YOU THROUGH OUR COMPETITIVE ANALYSIS. 
          YOU KNOW, A LOT OF THIS FOR OUR CUSTOMER BOILS DOWN TO THE RATES AND THE BILLS THAT WE CAN OFFER THEM. 
          UH, HERE WE SHOW A, A COMPARISON ACROSS TEXAS OF THE SYSTEM AVERAGE RATE, SO THAT MEANS NOT JUST RESIDENTIAL. 
          SO THIS IS AN AVERAGE BY KWH OF THE RATES FOR, UM, RESIDENTIAL, UH, UH, UH, CNI AND INDUSTRIAL. 
          UM, SO THE SYSTEM AVERAGE RATE, THIS DATA IS AVAILABLE COMPETITIVELY, BUT IT COMES FROM THE FEDERAL, UH, EIA. 
          AND SO IT IS A COUPLE A BIT LAGGED. 
          SO THIS IS FOR CALENDAR YEAR 2024, SO A BIT LAGGED VERSUS THE LAST RESULTS WE'VE LOOKED AT, BUT IT GIVES US A PRETTY COMPREHENSIVE COMPARISON. 
          THE EIA DATA HAS LOTS OF PLAYERS. 
          UH, WE TEND TO, UH, THINK OF OURSELVES, UH, AS PEERS WITH PEOPLE WHO HA SERVE A LOT OF RESIDENTIAL LOAD. 
          THERE ARE A LOT OF DIFFERENT UTILITIES AND FOLKS WHO SERVE, UH, MOSTLY INDUSTRIAL, UH, FOLKS HAVE A DIFFERENT PROFILE FROM US. 
          SO WHEN WE PRUNE TO THE FOLKS WHO KIND OF LOOK LIKE US WITHIN THIS DATA SET, WE HAVE MANY OF THE PLAYERS HERE. 
          UH, WE CAN SEE THAT THE TEXAS AVERAGE SYSTEM AVERAGE RATE IS 11 UH, CENTS PER KWH, WHEREAS AUSTIN ENERGY CAME IN IN 2024 AT THAT 10.39. 
          SO THAT'S ABOUT 94% OF THE TEXAS AVERAGE RATE. 
          THIS IS AN IMPROVEMENT VERSUS THE 2023 NUMBERS, WHICH WERE, UH, FOR AUSTIN ENERGY AT 10.58. 
          SO THOSE ARE IMPORTANT METRICS. 
          UH, SOMETIMES WE LIKE TO SAY THAT NO ONE PAYS A RATE, THEY PAY A BILL. 
          AND SO WHEN WE LOOK AT DOLLARS, WE THINK THAT'S ALSO A VERY IMPORTANT, UM, COMPARISON TO MAKE IN PARTICULAR BECAUSE SO MANY OF OUR COMMUNITIES AND OUR UTILITIES EFFORTS ARE FOCUSED ON HELPING PEOPLE USE POWER EFFICIENTLY AND USE AS LITTLE AS THEY MIGHT NEED. 
          SO WE REALLY HAVE MANY PROGRAMS AND PROCEDURES THAT WORK ON THE QUANTITY. 
          UH, SO THE, THE KIND OF, UH, KWH AMOUNT THAT FLOWS INTO BILLS, AND WE'RE VERY SUCCESSFUL AT THAT, AS YOU GUYS KNOW. 
          UM, SO DURING THIS TIMEFRAME IN CALENDAR YEAR 2024, UH, AUSTIN ENERGY'S AVERAGE RESIDENTIAL USAGE WAS ABOUT 834 KWH PER MONTH VERSUS THE TEXAS AVERAGE OF MORE THAN A THOUSAND. 
          SO 1107, THOSE NUMBERS AREN'T ON HERE, BUT THEY, UM, FEED INTO THE NUMBERS HERE. 
          SO OUR RESIDENTS WERE USING 37% LESS 
          [00:25:01]
PER MONTH, UH, THAN THE TEXAS AVERAGE. 
          AND SO BOTH THAT QUANTITY MANAGEMENT AS WELL AS COST MANAGEMENT ON THE RATE SIDE, UH, LEAD TO SOME QUITE SUBSTANTIAL RESULTS WHEN WE COMPARE BILLS IN TERMS OF DOLLARS. 
          SO THE TEXAS AVERAGE IS THAT 186 IN THE BLACK LINE, SORRY, 166 IN THE BLACK LINE. 
          AND THEN, UH, AUSTIN ENERGY COMES IN AT 104, WHICH IS THE GREEN LINE. 
          AND AGAIN, THAT'S 37% LESS OF A BILL. 
          UM, SOME, SOMETHING ELSE WE'D NOTE HERE IS THAT AUSTIN ENERGY DOES NEED TO PARTICIPATE IN THE ERCOT MARKET, WHICH HAS, UM, YOU KNOW, IS A, IS A FAIRLY VOLATILE MARKET AND HAS SOME EXPENSES, UM, SOME PRIOR HISTORY WITH STORMS LIKE YURI THAT ARE STILL BEING FUNDED BY CUSTOMER RATES. 
          AND MANY OF THESE TEXAN, UH, FOLKS THAT ARE IN THE SAME BUSINESS AS US DO NOT PARTICIPATE IN THE ERCOT MARKET. 
          SO EL PASO ELECTRIC, SWEPCO AND SPS, BASICALLY THE THREE NEIGHBORS IN THIS CHART, UH, DON'T PARTICIPATE IN ERCOT. 
          AND SO IN A WAY, AUSTIN ENERGY IS, UM, HAS AN EXTREMELY LOW BILL AMONG TEXAN ERCOT ENTITIES, AND THAT IS THE SET OF IDEAS I HAD FOR YOU TODAY. 
          I'M HAPPY TO DISCUSS OR ANSWER ANY QUESTIONS. 
          YES, SIR. 
          UH, BACK ON PAGE FOUR, THERE WAS A, A BIG ITEM OF SAVINGS BY REDUCTION IN POST-EMPLOYMENT. 
          IS THAT RETIREMENT FUNDING? YES. 
          AND WERE THERE CHANGES OF BENEFITS OR WAS YOU TALKED ABOUT JUST BEING RECALCULATED, SORRY. 
          IT WAS, UM, UH, A LITTLE OF BOTH. 
          SO THE RETIREMENT PLANS WERE, UH, CHANGED PARTICULARLY AROUND SOME OF THE HEALTHCARE OPTIONS. 
          UH, AND THEN THAT WAS EVALUATED ACTUARIALLY, UM, WITH UPDATED ACTUARIAL ASSUMPTIONS AS WELL, BUT THAT'S RIGHT, THE MAIN DRIVER THERE IS, UM, SORT OF A, A NON-CORE NON-CASH CHANGE IN ACCOUNTING. 
          OTHER QUESTIONS? UM, THE, YOU TALKED TO A FEW PLACES AROUND LIKE A $30 MILLION TRANSFER. 
          I GUESS I DIDN'T PICK UP WHAT, WHAT, WHAT IT WAS. 
          COULD YOU JUST EXPLAIN THAT A BIT? SURE. 
          YEAH. 
          SO IN UM, PREVIOUS YEARS, ESPECIALLY 2022 AND 2023, WE HAD SIGNIFICANT STRESS IN OUR POWER SUPPLY ADJUSTMENT COSTS. 
          UH, SO THOSE WERE THE HOT YEARS WITH LOTS OF CONGESTION. 
          UH, DURING THAT TIME WE ACTUALLY, UM, PULLED FUNDS FROM RESERVES, UH, TO HELP US MEET CURRENT NEEDS, UM, AROUND THAT EXPENSE. 
          WE PAY ERCOT EVERY SINGLE DAY FOR THE POWER THAT WE, UM, BUY FROM THEM, WHICH IS ALL OF OUR POWER. 
          UM, SO IN PREVIOUS YEARS WE HAD PULLED FROM RESERVES, UH, AND NOW, UH, BEST PRACTICE IS TO, UH, TOP THEM BACK UP BASICALLY TO REPLENISH THEM. 
          WE CAN DO THAT IN PART BECAUSE WE HAVE OVER COLLECTED BALANCES IN THE POWER SUPPLY ADJUSTMENT ACCOUNTS. 
          AND SO THAT'S WHAT WE DO. 
          BASICALLY, IN PREVIOUS YEARS, WE PULLED FROM RESERVES INTO POWER SUPPLY ACCOUNTS, AND THIS YEAR WE HAD THE OPTION TO, UM, REVERSE THAT, UH, PREPARE OURSELVES FOR THE NEXT STRESS EVENTS AND FUND THE POWER SUPPLY RESERVE FROM, UH, THAT OVER COLLECTED BALANCE. 
          SO HOW, HOW DOES THE RESERVES CORRELATE TO CASH OF CA UM, DAYS OF CASH ON HAND? IT'S, UH, THEY'RE IN THE CALCULATION, UH, WHICH FOR SOME OF US IS INTERESTING BECAUSE, UM, WE, WE DON'T PLAN TO USE THAT MONEY FOR ANYTHING ELSE OTHER THAN TO GIVE IT BACK TO, UH, SORRY, I, I WAS TALKING ABOUT, UM, OVER COLLECTED BALANCE. 
          THE RESERVES, UM, ARE IN THE CASH ON HAND CALCULATION, SO IT'S CASH AND RESERVES. 
          THE DIFFERENT RESERVES HAVE DIFFERENT TRIGGERS FOR, FOR WHEN, UM, THEY SHOULD BE APPLIED. 
          AND SO THE CASH ON HAND IS SORT OF A VERY BIG BUCKET AND A LOT OF THE RESERVES ARE SLICES THAT ARE SORT OF FOR PARTICULAR NEEDS, BUT THEY ADD UP TO THE TOTAL. 
          OKAY. 
          UM, I GUESS I'M JUST TRYING TO LIKE, SO WE WANT TO GET TO 200, UH, DAYS OF CASH ON HAND. 
          UM, I GUESS WE'RE AT, WELL, ONE 60 WANTS THE, THE OVER COLLECTION IS IS ABOUT ONE 60 SOMETHING. 
          YEAH. 
          UM, BUT WAS THE 30 MILLION, LIKE, WAS THE 30 MILLION, I'M JUST TRYING TO FIGURE OUT LIKE, SO THE 30 MILLION CAME FROM OVER COLLECTIONS GOES INTO RESERVES. 
          IT, IT BOOSTS OUR, OUR CASH ON HAND, BUT WE CAN'T DO THAT WITH THE OTHER MONIES THAT'S IN THE OVER COLLECTION. 
          YOU CAN'T, LIKE HOW, LIKE HOW COME THE 30 MILLION WAS ABLE TO MOVE, BUT I GUESS THAT 105 MILLION ISN'T ABLE TO MOVE RIGHT. 
          KIND OF BECAUSE OF THE MOVE. 
          SO THE 30 MILLION, UH, DIDN'T CHANGE THE TOTAL CASH ON HAND. 
          THEY MOVED FROM, FROM ONE LINE TO ANOTHER. 
          OH, OKAY. 
          THE 105 IS STILL IN A LINE THAT'S IN THE CASH ON HAND, BUT WE INTEND TO RETURN ALL OF THAT LINE ITEM TO CUSTOMERS SOON. 
          OKAY. 
          AND SO, SO THAT'S WHY, UH, WE SORT OF RECOMMEND HAVING A LENS WITHOUT THE ONE OH 5 MILLION, WHICH IS WHAT IS OVER COLLECTED RIGHT NOW. 
          RIGHT. 
          AND WHICH WE PLAN TO RETURN TO CUSTOMERS THROUGH RATES. 
          THE 30 MILLION WAS SORT OF, UH, PUT BACK INTO LONG-TERM STORAGE, IF YOU LIKE. 
          AND SO THAT IS CASH ON HAND. 
          UM, BUT WE DON'T 
          [00:30:01]
ANTICIPATE ADJUSTING THE PSA RATE TO RETURN IT TO CUSTOMERS SOON. 
          IT'LL, IT'LL, IT'LL SIT TIGHT UNTIL WE NEED IT FOR STRESS EVENTS. 
          OKAY. 
          SO IT WAS ALREADY COLLECTED, JUST MOVED IT FROM ONE BUCKET TO ANOTHER? YEAH, THAT WAS, I WAS CONFUSED ABOUT THINGS. 
          YEAH. 
          OTHER QUESTIONS? ANY ONLINE? OKAY, I HAVE A QUESTION. 
          SO, OVER THE PAST FEW YEARS BECAUSE OF CONGESTION, THERE SEEMED TO BE 150 PLUS MILLION FOR A FEW YEARS IN CONGESTION COSTS. 
          MM-HMM . 
          WHAT IS THAT RIGHT NOW? HOW ARE WE, HOW'S ERCOT DOING? WAS THERE MORE TRANSMISSION BUILD OUT THE MILDER WEATHER? I COULD SEE A NUMBER OF THINGS IMPACT THAT MAYBE IN A POSITIVE WAY, BUT, AND IF YOU CAN GIVE SOME KIND OF IDEA OF HOW MUCH WAS EXTRA TRANSMISSION, HOW MUCH WAS JUST MORE NORMAL WEATHER? SOME IT COULD BE LUCK, SOME COULD BE TRANSMISSION LINES NOT GOING DOWN FOR MAINTENANCE OR WHATEVER. 
          HOW MUCH HAS BEEN CONGESTION COSTS FOR US? YEAH, SO, UM, CONGESTION COSTS ARE, ARE FAR DOWN VERSUS 22 AND 23. 
          I DON'T HAVE THE EXACT FIGURE IN MY HEAD, UH, BUT THEY ARE SIGNIFICANTLY DOWN. 
          I I TIE TO THE 130 MILLION THAT YOU MENTIONED IN A STRESS YEAR. 
          IN MANY ORDINARY YEARS, IT'S MORE LIKE 40 TO 60 MILLION. 
          UM, AS FAR AS THE CHANGE, I WOULD ASSOCIATE A LOT OF IT WITH AN A WEATHER NORMAL YEAR. 
          SO IT JUST WASN'T AS HOT. 
          UH, THERE WEREN'T AS MANY, UH, COOLING DEGREE DAYS. 
          UM, AND SO THAT, UM, ALLOWED THE SYSTEM TO BE MORE SUPPLIED BY, UM, UH, IT JUST HAD LOWER DEMAND TO FORCE THROUGH THOSE PIPES. 
          UM, THE OTHER, UH, TWO THINGS THAT I WOULD MENTION ARE WE HAD JUST AN AMAZING BUILD OUT OF BOTH SOLAR AND BATTERIES IN THE ERCOT SYSTEM. 
          UM, THERE'S ALMOST A GEOMETRIC CURVE OVER THE LAST FEW YEARS FOR BOTH OF THOSE ASSETS. 
          UM, SO SOLAR, FOR EXAMPLE, A FEW YEARS AGO WOULD CONTRIBUTE ABOUT 20 GIG GIGAWATTS TO THE SYSTEM ON A HOT DAY. 
          UM, AND THAT, THAT WAS DURING THE KIND OF 2022 AND 2023 WHEN WE SAW PRICE SPIKES IN ERCOT AROUND NOON THIS YEAR, THERE WERE ALMOST NO PRICE SPIKES AROUND NOON BECAUSE THERE'S ALMOST 30 GIGAWATTS OF SOLAR NOW CONTRIBUTING, UH, TO THE GRID. 
          UM, YEAH, YEAH, I COULD GO ON. 
          UM, BUT, UH, YOU KNOW, A, A HOT DAY MIGHT HAVE 80 GIGAWATTS OF LOAD AND WE'RE NOW GETTING ABOUT 30 FROM SOLAR AND ON A NORMAL DAY, CALL IT 20 FROM WIND. 
          AND SO WE'RE JUST ON MANY, MANY DAYS BEING, UM, ALMOST ENTIRELY SUPPLIED DURING THE AFTERNOON BY RENEWABLE RESOURCES, WHICH ARE INEXPENSIVE, UM, AND DISPATCHED AT $0. 
          UM, SO THAT, THAT'S A HUGE CONTRIBUTOR AND, AND HAS BASICALLY TAKEN A LOT OF THE CONGESTION OUT FROM CERTAIN HOURS. 
          UH, THE OTHER THING IS BATTERIES. 
          UH, SO THE, THE THING THAT THE SOLAR BUILD OUT IS NOW LEAVING AS A TAIL IS, UH, THE EIGHT O'CLOCK HOUR. 
          SO SUNSET AND BATTERIES SIMILARLY ARE JUST ON A GEOMETRIC CURVE. 
          UM, I FORGET THE LATEST NUMBERS, BUT THE CAPACITY IS ROUGHLY DOUBLING, UH, EVERY YEAR. 
          AND SO THAT HAS HELPED A LOT. 
          UM, BUT ALL OF THAT, YOU KNOW, THE, THE SOLAR BUILD OUT IS CLOSER TO LOAD THAN IT HAS BEEN IN THE PAST, BUT IT'S STILL IN, IN LARGE PART, THERE ARE SIGNIFICANT BUILD OUTS IN THE PANHANDLE, I MEAN, IN, UH, THE WEST AND IN THE SOUTH. 
          UM, AND SO YOU, YOU WOULD STILL HAVE A CONGESTION PROBLEM IF YOU HAD THE HEAT. 
          SO, UM, LONG STORY SHORT, I THINK IT'S A COMBINATION OF A WEATHER NORMAL YEAR AND THE BUILD OUT OF ZERO DISPATCH ASSETS AND, AND NOT MUCH ON THE TRANSMISSION SIDE. 
          TRANSMISSION IS BEING SLOWER. 
          OTHER, OTHER QUESTIONS? I THINK THERE WERE, I THINK A COUPLE PRESENTATIONS AGO WAS LIKE PEAK WAS DOWN, BUT ENERGY WAS UP. 
          RIGHT? I KNOW THAT THAT WAS LIKE IN, IN ERCOT LAST YEAR. 
          PEAK WAS DOWN IN THIS YEAR, PEAK WAS DOWN, BUT ENERGY'S UP. 
          IS THAT ALSO THE CASE IN AUSTIN ENERGY? 'CAUSE THAT WOULD, THAT WOULD HELP 'CAUSE WE'D HAVE LESS SEPARATION, BUT MORE DOLLARS FLOWING IN THROUGH VOLUME. 
          RIGHT. 
          I THINK THAT BROADLY TRACKS. 
          I HAVE SOMETHING IN MY HEAD FROM THE PREVIOUS YEAR BEFORE WHERE FOR AUSTIN ENERGY, WE SET A NEW PEAK IN 2024, BUT LAST QUARTER WAS DOWN. 
          OKAY. 
          LAST QUARTER I PRESENTED WAS DOWN, CONSUMPTION WAS UP. 
          GOTCHA. 
          LISA SAYS PEAK WAS DOWN, CONSUMPTION WAS UP. 
          YEAH. 
          OKAY. 
          SO, SO SINCE WE HAVE THE EXPERTS IN THE ROOM, WHAT'S THE REALITY WITH THIS LARGE LOAD BUILD OUT? HOW MUCH OF THIS STUPENDOUS POTENTIAL GROWTH THAT WE HEAR ABOUT FROM AI AND DATA CENTERS IS REALLY GONNA HAPPEN?  WHEN I LOOK OVER AND EVERYBODY ELSE IS LOOKING AT ME. 
          , UH, GOOD EVENING, STUART. 
          THE BUCK STOPS HERE. 
          YEAH, YEAH, EXACTLY. 
          GOOD EVENING. 
          STUART RILEY, AUSTIN ENERGY, UH, GENERAL MANAGER. 
          I THINK THE, UM, I MEAN YOU'VE, YOU'VE HIT ON THE, THE QUESTION IS, YOU KNOW, EVERYBODY IN ERCOT IS TRYING TO FIGURE OUT IN TERMS OF LARGE LOADS WHAT'S REAL. 
          UM, YOU KNOW, WHAT'S NOT REAL. 
          I THINK WE, YOU KNOW, WE HAVE A LOT OF INTEREST, UM, FROM LARGE LOADS WHO COME 
          [00:35:01]
TO US JUST LIKE THEY'RE COMING TO EVERYBODY ELSE. 
          OUR CUT'S GOTTEN A LOT BETTER AT ACCOUNTING FOR THE DOUBLE COUNTING OR TRIPLE COUNTING OR QUADRUPLE COUNTING OF LARGE LOADS THAT ARE GOING TO, UM, ALL THE DIFFERENT UTILITIES. 
          AND PREVIOUSLY THEY WERE DOUBLE COUNTED. 
          AND, UM, SENATE BILL SIX HAS HELPED WITH THAT AS THEY HAVE TO DISCLOSE THAT INFORMATION. 
          UM, AND TO, TO HELP WITH THE PLANNING. 
          WE HAVE KIND OF A TRACKING SHEET OF WHAT WE'RE LOOKING AT IN TERMS OF, UM, LIKELIHOOD OF COMING TO FRUITION. 
          AND, UM, YOU KNOW, EVEN WHEN WE LOOK AT OUR, UM, KIND OF MORE CONSERVATIVE ESTIMATES OR MORE, UM, LIKELY TO COME TO FRUITION NUMBERS, YOU KNOW, WE'RE LOOKING AT SOMETHING IN THE RANGE OF ABOUT 500 MEGAWATTS WORTH OF, OF PROJECTS. 
          THOSE AREN'T, UM, THAT'S A, THAT'S A LOT OF THINGS LIKE, UM, YOU KNOW, WHETHER IT'S HOSPITALS AND UM, T PROJECTS AND THOSE KINDS OF THINGS. 
          WE'RE NOT TALKING ABOUT REALLY A LOT OF DATA CENTERS. 
          WE ARE HAVING SOME SMALL DATA CENTER TYPE PROJECTS WHO ARE INTERESTED IN, IN IT, UM, LOCATING HERE, BUT REALLY THEY'RE PROBABLY GOING TO BE MORE FOCUSED ON AREAS WHERE REAL ESTATE IS CHEAPER, SORT OF IN OUTLYING AREAS. 
          SO WE'RE GETTING SORT OF, UH, THE AGGREGATION OF SMALLER, LARGE LOADS, THINGS THAT ARE BELOW 75, THAT 75 MEGAWATT THRESHOLD. 
          UM, AND SO IT IS AN ONGOING CHALLENGE FOR UTILITIES TO DIFFERENTIATE WHAT'S, UH, REALLY GONNA COME TO FRUITION AND, UM, AND WHAT'S NOT. 
          AND THAT'S, UH, FOR US A LOT OF CONVERSATIONS WITH THOSE POTENTIAL CUSTOMERS TO FIGURE OUT WHAT THEIR NEEDS ARE GOING TO BE. 
          LONG ANSWER TO SAY WE'RE STILL, YOU KNOW, FIGURING OUT AND, AND EVERYBODY'S KIND OF TRIANGULATING ON, ON, UH, WHAT THOSE NEEDS ARE GOING TO BE. 
          IS THERE A ROUGH TIME LIKE BY THAT 500, LIKE 500 BY 2030? I THINK THAT'S ABOUT RIGHT. 
          THIR 31, UH, IT, IT'S THO THOSE, UM, THAT CUMULATIVE NUMBER HAS, UM, ANYTHING FROM 26 THROUGH THROUGH 31, UH, THERE'S SURE, YOU KNOW, DIFFERENT POINTS OF TIME WHEN THOSE THINGS WOULD BE COMING ONLINE. 
          YEAH. 
          YOU KNOW, AND THOSE ARE PROJECTS FROM, UH, YOU KNOW, FOUR MEGAWATTS TO 40 MEGAWATTS, THINGS LIKE IN THAT RANGE. 
          OKAY. 
          SO WHAT'S THE PEAK LOAD OF AE NOW? IS IT 2300? ABOUT THREE. 
          A LITTLE OVER 3000. 
          3000 IN BOTH SUMMER AND WINTER WINTER'S. 
          UH, A LITTLE BELOW 2,800. 
          SO THEY'RE BOTH, BUT YEAH. 
          BUT WINTER'S CATCHING UP. 
          SO, UH, WINTER'S GETTING CLOSE TO 3000 AS WELL. 
          ARE MOST OF ALL THESE NEW APARTMENTS GOING UP? ELECTRIC HEAT TYPICALLY, YES. 
          UM, THEY NEW LOADS, EVEN SINGLE FAMILY ARE, ARE TYPICALLY CHOOSING ELECTRIC TO, TO GAS, UM, JUST, UH, FOR SPEED AND, AND EFFICIENCY REALLY, AND, AND COSTS. 
          UM, WE'RE, WE'RE SEEING OUR, AND THAT'S WHY THE WINTER NUMBER IS CATCHING UP, IS MORE OF THE NEW HOUSING STOCK IS, IS MORE ELECTRIC HEATING RATHER THAN GAS. 
          AND, AND WE LOVE IT. 
          YES. 
          ALONG WITH THAT, DO WE HAVE ANY, ANY POWER OR CODE, UH, ENFORCEMENT POWER TO, TO MINIMIZE STRIP HEATING AND EMPHASIZE ACTUAL FUEL, YOU KNOW, HEAT PUMP, HEAT PUMPS THAT WORK TO LOW TEMPERATURE AS OPPOSED TO HAVING THE STRIP BACK UP? ARE WE WORKING ON THAT? WE HAVE, WE HAVE REALLY TRIED TO, UM, TO INCENTIVIZE PEOPLE RATHER THAN, UM, TAKING SORT OF, UH, A PUNITIVE APPROACH OR, UM, OR, OR TO REALLY, UM, TO, WELL, LET ME BACK UP. 
          I THINK ONE OF THE GOALS OF THE, OF THE RESOURCE PLAN WAS TO LOOK AT GREENHOUSE GAS AVOIDANCE AS A METRIC RATHER THAN JUST, UM, ENERGY, ELECTRICITY USAGE REDUCTIONS. 
          AND SO BY, BY DOING THAT, BY CHANGING OUR METRICS, WE, THAT THEN ENABLES US TO KIND OF, UH, APPROACH THIS FUEL SWITCHING AS A, AS A POSITIVE BECAUSE WE WOULD BE GROWING OUR LOAD, BUT WE WOULD BE REDUCING GREENHOUSE GAS EMISSIONS. 
          SO, UM, I THINK SOME OF OUR PROGRAMS WILL BE BETTER IN THE FUTURE AT BEING ABLE TO DO THAT BECAUSE WE CAN NOW HAVE THAT DIFFERENT METRIC TO BE AIMING TOWARDS. 
          OR WOULD YOU, WOULD YOU THEN, UH, INCENTIVIZE OR, OR OFFER REBATES FOR, FOR HEAT PUMPS AS OPPOSED TO STRIP REPEATING? IS THAT SOMETHING THAT COULD BE ADDED THROUGH THE ? THERE ARE CURRENTLY HEAT PUMP, 
          [00:40:01]
UM, REBATES? UM, YES, ABSOLUTELY. 
          HMM. 
          OKAY. 
          WHICH STRIP REPEATING WOULD NOT BE, UH, REBATED. 
          OKAY. 
          OTHER QUESTIONS? ANYONE ONLINE? I DON'T SEE ANY HANDS. 
          OKAY. 
          THANK YOU. 
          THANK YOU. 
          NEXT IS 
          [11. Staff Briefing on the Fourth Quarter Operations Report by Lisa Martin, Deputy General Manager  and Chief Operating Officer.]
STAFF BRIEFING ON THE FOURTH QUARTER OPERATIONS BY LISA MARTIN. 
          ALL RIGHT. 
          GOOD EVENING, CHAIR TUTTLE, VICE CHAIR, WHITE AND COMMISSION MEMBERS. 
          I'M LISA MARTIN AUSTIN, ENERGY CHIEF OPERATING OFFICER, AND TODAY I'M HERE TO SHARE THE OPERATIONS UPDATE FOR THE MONTHS OF JULY, AUGUST AND SEPTEMBER, 2025. 
          I'M GONNA STICK WITH THE STANDARD, UH, USUAL AGENDA TOPICS AND OUR EXECUTIVE SUMMARY SHOWS THAT WE HAD 34% RENEWABLE PRODUCTION AND 55% CARBON FREE PRODUCTION, BOTH AS A PERCENTAGE OF LOAD FOR Q4. 
          OUR GENERATING RESOURCES HAD HIGH AVAILABILITY SUFFICIENT TO MATCH THE SUMMER DEMAND AND OUR RELIABILITY PERFORMANCE METRICS ARE GENERALLY TRENDING STABLE. 
          NEXT SLIDE. 
          THANK YOU. 
          I WILL START WITH OUR ENVIRONMENTAL PERFORMANCE. 
          SO FOR QFI Q4, 2025, UM, CARBON FREE GENERATION IS A PERCENTAGE OF LOAD AVERAGE 55%. 
          SO OUR SUMMER LOAD IS ALMOST IDENTICAL TO THE SUMMER OF 2024. 
          UM, I'LL MENTION THAT AGAIN ON A FUTURE SLIDE, BUT OUR CARBON FREE GENERATION HERE INCREASED BY 2% COMPARED TO THE SUMMER OF 2024. 
          AND LOOKING AT THAT IN TERMS OF A PERCENTAGE, UH, SORRY, 12 MONTH ROLLING AVERAGE, THAT'S THE SMOOTH LINE SHOWN HERE. 
          WE'RE AT 65% CARBON FREE GENERATION AS A PERCENTAGE OF LOAD TRENDING UP EVER SO SLIGHTLY SINCE THE START OF THE CALENDAR YEAR. 
          ALL , AND WE'LL GO TO, UH, OUR NET GENERATION AND LOAD ANALYSIS STARTING IN THE UPPER LEFT. 
          OUR FUEL COST METRICS IN THE PIE CHART CONTINUE TO SHOW SIGNIFICANT USE OF CARBON FREE SOURCES AT 65%. 
          THAT'S THE SUM OF THE DARK GREEN AND THE BLUE PIE WEDGES. 
          HOPEFULLY YOU CAN SEE THE COLORS THERE. 
          UM, MOVING DOWN TO THE BLUE LINE CHART SYSTEM, PEAK DEMAND WAS LOWER FOR Q4 DURING THIS FISCAL YEAR, JUST UNDER, UM, WELL JUST OVER 29, UH, TWO 2,938 MEGAWATTS IS WHAT THIS NUMBER IS COMPARED TO THE PREVIOUS DATA POINT IN Q4 OF FISCAL YEAR 24, WHICH WAS OUR ALL TIME PEAK AT 31 35 MEGAWATTS. 
          THE BAR CHART IN THE TOP RIGHT SHOWS GENERATION FOR THE QUARTER, TOTALING ABOUT 3.67 MILLION MEGAWATT HOURS. 
          IT'S GREATER THAN WHAT WE SAW THE SAME QUARTER LAST YEAR. 
          UM, AND AGAIN, SUMMER LOAD OF 25 AND 24 WERE ALMOST IDENTICAL AT 4.45 MILLION MEGAWATT HOURS. 
          SO WHILE WE HAD, UM, NEARLY IDENTICAL ENERGY CONSUMPTION IN THIS QUARTER AND LAST YEAR, THIS QUARTER, THE UM, PEAK OF COURSE, AS WE'RE SHOWING HAS GONE DOWN SIGNIFICANTLY. 
          AND FINALLY, IN THE BOTTOM RIGHT, THIS PIE CHART SHOWS POWER GENERATION AS A PERCENTAGE OF LOAD FOR THE QUARTER. 
          HERE'S WHERE YOU SEE THE 34% RENEWABLES IN THE 21% NUCLEAR OR A TOTAL OF 55% CARBON FREE. 
          ALL RIGHT, WE'LL MOVE ON TO RELIABILITY PERFORMANCE. 
          THIS SLIDE SHOWS GENERATOR PERFORMANCE. 
          IN TERMS OF COMMERCIAL AVAILABILITY. 
          WE SEE THAT BOTH, UH, SOUTH TEXAS NUCLEAR AND FPP WERE 100% AVAILABLE WITH NO OPERATIONAL ISSUES TO REPORT DURING THIS CRITICAL FOURTH QUARTER RUN. 
          ALL THE UNITS AT SANDHILL IN THE NEXT TWO LINES EXCEEDED THEIR SUMMER AVAILABILITY TARGET, SO THEIR ACTUAL AVAILABILITY IN THE CENTER AND THE TARGETS ON THE FAR RIGHT, UM, THEY HAD MINIMAL DOWNTIME DUE TO, UH, FORCED OUTAGE. 
          THE DECKER PEAKERS ON THE BOTTOM ROW ARE SHOWING THEIR AGE AND EXPERIENCING MORE FORCED OUTAGES THAN USUAL. 
          UM, THESE UNITS ARE OF COURSE CRITICAL DURING TIMES OF HIGH DEMAND AS OUR LAST RESORT, LOCAL RESOURCES, BUT FORTUNATELY WE GOT BY THIS SUMMER, DESPITE BEING UNDER THE SUMMER AVAILABILITY TARGET. 
          NEXT SLIDE PLEASE. 
          WE'LL SHIFT GEARS TO SOME ELECTRIC VEHICLE, UH, CHARGING NETWORK METRICS HERE. 
          WE'RE CALCULATING THE 12 MONTH ROLLING AVERAGE. 
          AT THE TOP YOU SEE THAT THE OVERALL NETWORK OF 1500 PLUS CHARGING STATIONS HAD AN UPTIME OF 99% ON THAT ROLLING 12 MONTH AVERAGE. 
          AND THIS HAS REMAINED QUITE STEADY OVER THE PAST YEAR. 
          THE BOTTOM, UH, LINE CHART SHOWS OVERALL UPTIME OF THE 30 DC FAST CHARGING STATIONS. 
          THIS QUARTER WE WERE AT JUST OVER 89%, AND AUSTIN ENERGY IS CURRENTLY RUNNING 
          [00:45:01]
OUR REQUEST FOR PROPOSALS FOR THE NEXT CONTRACTED MAINTENANCE PROVIDER FOR OUR NETWORK OF CHARGING STATIONS, AND IT'LL BE GOING TO COUNCIL FOR APPROVAL IN THE COMING MONTHS. 
          SO LISA, ON THE 89% YES. 
          AVAILABILITY FOR THE DC FAST CHARGERS, I MEAN, IT LOOKS STUCK THERE WITH ABOUT 10 OR 11% NOT AVAILABLE. 
          AND WHAT'S, WHAT ARE THE THINGS THAT CAN REALLY BE DONE TO, TO GET THAT UP TO 99 POINT SOMETHING? WELL, JUST REMEMBER THIS IS A SMALLER SUBSET. 
          THERE'S ONLY ABOUT 30 OF THOSE CHARGING STATIONS. 
          UM, SO 10%, THREE OF THEM DOWN. 
          UM, AND, UH, IN GENERAL THEY, YOU KNOW, THEY GO DOWN FOR, FOR VARIOUS REASONS. 
          I THINK SOMETIMES IT'S SOFTWARE, SOMETIMES IT'S FIRMWARE, AND SOMETIMES THERE WAS ONE. 
          I KNOW THAT, UM, IN Q3 THE DOWNTIME WAS LARGELY BECAUSE, UM, DURING, UH, THE MICROBURST THEY WERE HIT, UH, THE ONES THAT THE HEB HERE IN MUELLER WERE HIT. 
          UM, AND WE HAD TO, UH, REPLACE A TRANSFORMER TO GET THEM BACK ONLINE. 
          UM, I THINK IT TOOK A LITTLE BIT TIME FOR US TO REALIZE THAT THEY WERE DOWN. 
          UM, BUT YOU KNOW, ALL IN ALL PRETTY STEADY AVAILABILITY. 
          THERE. 
          ARE THOSE, ARE THOSE JUST THE CHARGEPOINT ONES OR ARE THEY, I KNOW THERE'S OTHER FAST CHARGING BRANDS OUT THERE, BUT IS THAT JUST THE CHARGEPOINT ONES? LEMME SEE IF MY NOTES TELL ME THAT ONE. 
          I I KNOW IT'S PART OF THE, UM, THE, YOU KNOW, CHARGE EVERYWHERE NETWORK AND SO I, I THINK THE ANSWER IS THAT THEY'RE ONLY CHARGEPOINT, BUT I'LL HAVE TO CHECK. 
          OKAY. 
          I'M SORRY. 
          OKAY. 
          UM, NEXT SLIDE. 
          OUR PLUGIN EVERYWHERE NETWORK CONTINUES TO HAVE HIGH USAGE. 
          UM, WE ARE AVERAGING OVER 36,000 CHARGING SE SESSIONS EVERY MONTH. 
          AND OUR PEAK USAGE CONTINUES SAME, SAME AS WHAT I REPORT EVERY QUARTER, UH, BETWEEN 9:00 AM AND 2:00 PM THE AVERAGE PLUGGED IN TIME IS JUST UNDER FIVE HOURS. 
          AVERAGE CHARGING TIME, TWO HOURS AND 51 MINUTES. 
          NEXT SLIDE. 
          OUR DISTRIBUTION RELIABILITY METRICS ARE SHOWN ON THIS SLIDE. 
          AND OF COURSE THE BAR CHARTS AT THE TOP COMPARE US TO THE TEXAS AVERAGE. 
          REMEMBER, LOWER IS BETTER. 
          AND SO WE CONTINUE TO PERFORM WELL COMPARED TO THE TEXAS AVERAGE. 
          OUR TREND LINES ARE A LITTLE BIT INTERESTING THIS MONTH. 
          ON THE FAR LEFT YOU SEE, UH, OUTAGE FREQUENCY AND THAT'S, UH, SLOWING ITS UPWARD TREND. 
          UM, THE DURATION, UH, IN THE CENTER IS DECREASING A FAIR AMOUNT. 
          AND SO OVERALL THIS MEANS THAT THE AVERAGE MINUTES TO RESTORE SERVICE TO AFFECTED CUSTOMERS, WHICH IS ON THE FAR RIGHT, IT'S ALSO GOING DOWN. 
          SO LAST YEAR, I'M SORRY, LAST QUARTER THIS NUMBER WAS 85 MINUTES, AND THIS TIME LAST YEAR IT WAS NEARLY 90 MINUTES. 
          UM, AND SO WHAT WE'RE SEEING NOW, JUST ABOUT 76 MINUTES MEANS OUTAGES THIS YEAR ARE NEARLY A QUARTER OF AN HOUR SHORTER THAN LAST YEAR, WHICH IS PRETTY SIGNIFICANT. 
          UM, OF THE OUTAGES FOR THIS QUARTER, NEARLY 10% WERE CAUSED BY SQUIRRELS. 
          25% WERE SCHEDULED OUTAGES TO REPLACE TRANSFORMERS OR OTHER EQUIPMENT, AND ABOUT 12% WERE FUSES, WHICH MAKES ME PRETTY EXCITED ABOUT ALL OF THE, UH, RECLOSING FUSES THAT WE'RE INSTALLING ACROSS OUR SYSTEM. 
          ALRIGHT. 
          UM, ANY QUESTIONS ON THE SAFETY, SAFETY, THESE METRICS? KATIE? NO. 
          ANOTHER QUESTION JUST TO COMMENT THAT YOU GUYS ARE DOING A REALLY GOOD JOB TO BRING THESE DOWN AND THANK YOU. 
          I'M NOT SURE WHAT WE CAN DO ABOUT SQUIRRELS. 
          I HAVE A LOT OF 'EM, BUT, UH, BUT YOU ARE DOING A REALLY GOOD JOB COMPARED TO THE STATE AVERAGE. 
          THEY'RE VERY BUSY THIS TIME OF YEAR, BUT THANK YOU. 
          WE HAVE, WE HAVE A WAYS TO GO STILL WITH RELIABILITY. 
          UM, AND I'LL TALK TO YOU ABOUT THE RESILIENCY PLAN HERE SHORTLY. 
          BUT, UH, THANK YOU FOR YOUR COMMENTS. 
          ALL RIGHT. 
          I'LL END WITH A COUPLE OF SLIDES ON STRATEGIC WORK. 
          THANK YOU. 
          UM, FIRST AS I WRAP UP THIS QUARTER'S UPDATE, I WANNA TAKE A MOMENT TO CELEBRATE WITH YOU SINCE WE NOW HAVE AN OFFICIALLY SIGNED BATTERY STORAGE AGREEMENT. 
          AS A REMINDER, IT'S A 100 MEGAWATT FOUR HOUR DURATION BATTERY STORAGE SET THAT IS SET TO HAVE A COMMERCIAL OPERATION DATE AT THE END OF 2027. 
          IT'S LOCATED IN EASTERN TRAVIS COUNTY. 
          UM, OUTSIDE CITY LIMITS, IT SHOULD BE IN OUR SERVICE TERRITORY, SO IT WILL PROVIDE THAT LOCAL ENERGY SUPPORT. 
          AND THIS IS NOT A PHOTO OF IT. 
          THIS IS ANOTHER SITE THAT JUPITER POWER HAS IN TEXAS. 
          UM, BUT IT'S ABOUT THE SAME SIZE. 
          IT'S A 400 MEGAWATT HOUR SYSTEM AS WELL. 
          GO AHEAD. 
          IS THIS ON THE BACKSIDE OF DECKER OR, OR NO, IT'S FURTHER OUT. 
          FURTHER OUT. 
          FURTHER OUT, YEP. 
          BUT IT'S WITHIN OUR LOAD ZONE, SO IT'S WITHIN OUR LOAD ZONE POWER THAT 
          [00:50:01]
COMES INTO IT. 
          WE'RE WE'RE BUYING AT THE LOAD ZONE RATE, LET'S SAY AT NOON, AND THEN WE OWN IT FROM THEN ON, IS THAT CORRECT? WELL, IT'S GONNA BE, UH, REGISTERED WITH ERCOT AND SO WE'LL HAVE ITS OWN LOCATIONAL MARGINAL PRICE. 
          AND SO, BUT, AND YES, WE'LL BE BUYING IT AT THE YES, YOU'RE RIGHT. 
          UM, AND SO WHETHER IT'S CHARGING OR DISCHARGING, RIGHT, IT'LL HAVE ITS OWN PRICE, BUT WHEN WE'RE DISCHARGING IT, WE ALREADY OWN IT, WE DON'T HAVE TO SELL IT BACK TO ERCOT AND THEN BUY IT BACK, OR IS THAT A WASH? WELL, JUST LIKE EVERY GENERATION, WHEN WE, OR EVERY RESOURCE THAT PRODUCES ELECTRICITY, UM, WE, EVERYTHING GETS SOLD INTO THE MARKET AND THEN WE END UP BUYING AT OUR LOAD ZONE PRICE. 
          BUT VERY OFTEN RESOURCES THAT ARE WITHIN OUR LOAD ZONE HAVE PRICES THAT ARE SIMILAR TO OUR LOAD ZONE PRICE. 
          RIGHT, OKAY. 
          YEAH. 
          SO YOU BUY, YOU BUY AND SELL BOTH AT THE LMP AT THE WHOLESALE LEVEL? I AM ALMOST CERTAIN THAT IS THE CASE. 
          I FOUND MYSELF PAUSING FOR A SECOND BECAUSE EVERY BATTERY THAT I'VE WORKED WITH BEFORE HAS BEEN SMALLER, DOESN'T HAVE A, A LOAD ZONE. 
          IT DOESN'T HAVE ITS OWN LMP. 
          AND SO IT'S ALWAYS AT THE LOW ZONE PRICE. 
          BUT YES, I'M ALMOST CERTAIN THAT'S THE CASE. 
          SO I SAW A PRES PRESENTATION RECENTLY THAT THIS INNOVATIVE NEW COMPANY THAT HAD SMALLER SCALE BATTERIES WAS BUYING AND SELLING IT AT LOAD ZONE PRICES BECAUSE IT WAS PROBABLY, UM, SMALLER IN SIZE THAT IT WAS NOT REGISTERED IN, REQUIRED TO BE REGISTERED IN. 
          YOUR CUT MARKET WASN'T PART OF SCAD. 
          ALL RIGHT. 
          ONE MORE UPDATE FOR YOU ON THE NEXT, YOU'RE STILL WORKING ON THE, ON ANOTHER BATTERY PROJECT, RIGHT? IS THAT STILL ALIVE? AND IT IS STILL ALIVE. 
          WE ARE WORKING ON IT, YES. 
          AND WE HOPE TO HEAR THAT SOON. 
          I, YES. 
          OKAY. 
          IS THERE ANY SPACE EITHER AT DECKER OR WHEREVER THIS BATTERY IS GOING TO BE FOR ADDITIONAL SOLAR? UM, THERE, I MEAN POTENTIALLY. 
          POTENTIALLY. 
          UM, AND WE ARE LOOKING TO ISSUE AN ALL RESOURCE RFP HERE IN, IN THE VERY NEAR FUTURE FOR LOCAL RESOURCES ACROSS OUR SERVICE TERRITORY. 
          AND SO WE'LL SEE IF WE GET SOME OFFERS FOR LOCAL SOLAR IN THAT SENSE. 
          AND THAT WOULD INCLUDE SOLAR AND, AND BATTERIES OR ANYTHING, ANY KIND OF RESOURCE LOCALLY? YES. 
          OKAY. 
          WHEN DOES THAT GO OUT? 'CAUSE THAT, THAT'S A, THAT'S AN IMPORTANT PIECE OF GETTING OUR RENEWABLE PERCENTAGE CURRENT. 
          IT, IT IS A VERY IMPORTANT PIECE GOING BACK UP AND, UH, AND MY TEAM'S WORKING HARD ON GETTING THAT OUT THE DOOR. 
          I'M GONNA TELL YOU ABOUT THESE TWO 'CAUSE YOU'LL ALSO BE EXCITED ABOUT THESE, WHICH ARE SIMILAR MM-HMM . 
          UM, WE HAVE TWO RFPS THAT ARE CURRENTLY ACTIVE, UM, IN ADDITION TO THE ALL RESOURCE RFP THAT WE'RE WORKING ON. 
          THE FIRST ONE IS THE LANDFILL SOLAR RFP. 
          IT HAS HIT THE STREET AND WE'RE SEEKING COST EFFECTIVE PROPOSALS FOR UTILITY SCALE SOLAR TO GO ON THE FM EIGHT 12 LANDFILL. 
          AND SO AUSTIN ENERGY AND AUSTIN RESOURCE RECOVERY ARE IN PARTNERSHIP ON THIS EFFORT AS WE LOOK TO MAXIMIZE EXISTING LOCAL LAND AS A PRODUCTIVE RENEWABLE ENERGY SITE. 
          HOW, HOW BIG IS THAT IN POTENTIAL MEGAWATTS OR HOW BIG A SITE IS IT? WE ANTICIPATE THAT BASED OFF OF THE SIZE OF THIS, THE LAND THAT IS AVAILABLE FOR THIS, IT'LL BE BETWEEN FIVE AND EIGHT MEGAWATTS . 
          AND THEN WE'RE ALSO LOOKING FOR GOOD OPPORTUNITIES TO SIGN WIND ENERGY PPAS, AND WE'RE LOOKING FOR LOCATIONS ACROSS ERCOT. 
          ESSENTIALLY WE'RE WITH THE FEDERAL TAX CREDIT SOON TO EXPIRE. 
          WE'RE HOPING TO SEE SOME COMPETITIVE PRICING FOR SHOVEL-READY WIND FARMS. AND SO WE'LL BE ACCEPTING OFFERS WITH OR WITHOUT ONSITE BATTERY STORAGE PAIRINGS. 
          UM, AND BOTH OF THOSE ARE AVAILABLE ON OUR WEBSITE. 
          WHEN DOES THAT CLOSE? UH, LATER THIS MONTH. 
          BOTH OF THEM. 
          OKAY. 
          IBA, YOU HAVE A QUESTION? UH, UM, FIRST SUPER EXCITED ABOUT THE BATTERY PROJECT AND THESE TWO RFPS. 
          UM, GLAD THAT THE LANDFILL SOLAR IS, IS, UH, BACK IN MOTION. 
          SO WHATEV WHATEVER HAPPENED TO BREAK THAT, THAT FREE, UM, KUDO US TO, TO FOR THAT WORK. 
          THANK YOU. 
          I WAS JUST CURIOUS, UM, UH, YOU KNOW, BIG SUPPORTER OF WIND, HAPPY TO SEE IT ON HERE. 
          JUST WONDERING WHY, WHY WIND IN THAT WIND AND OR SOLAR, IF THERE WAS, UH, YOU KNOW, IF THAT'S THAT YOU'RE LOOKING FOR A CERTAIN, UH, TIME OF DAY THAT YOU'RE LOOKING FOR THE RESOURCE OR YEAH. 
          WHAT'S BEHIND THAT? THIS IS, UH, LARGELY JUST BECAUSE WE THINK THAT THERE ARE, UM, SOME WIND ENERGY UP IN, I MEAN ALTHOUGH WE ARE, WE'RE, IT'S OPEN FOR ACROSS ERCOT. 
          UM, SOME THAT WOULD BE, UM, KIND OF LOCATED WHERE THERE'S A SIGNIFICANT ACTIVITY IN OTHER INDUSTRIES. 
          UM, AND WE THINK THAT MOST OF THEM ARE IN THE WIND SPACE. 
          SO, UM, YOU KNOW, NOW I'M TRYING TO REMEMBER AND I'M FORGETTING MY MAP, BUT, UM, IT'S NOT THE COAST WE'RE THINKING. 
          IS IT THE WIND IS OFTEN IN THE PANHANDLE, RIGHT? OR SO? YEAH, YEAH, YEAH, YEAH. 
          [00:55:01]
AND IT'S WEST TEXAS SOLAR. 
          YEP. 
          OKAY. 
          YEAH, SO I THINK WE'RE JUST THINKING A LOT OF THESE ARE UP IN THE PANHANDLE, BUT WE'LL SEE WHAT WE GET. 
          'CAUSE WE'RE OFFERING FOR ALL OF IT, TRYING TO DO, UH, KEEP IT SIMPLE SO THAT WE CAN, UM, GET SOME, YOU KNOW, A QUICK TURNAROUND AND UM, HOPEFULLY GET SOME THING, IF WE CAN SEE SOME GOOD PRICING, GET SOMETHING SIGNED SO THAT WE CAN TAKE ADVANTAGE OF THE, UM, TAX CREDIT. 
          SO TRYING TO NOT OVERCOMPLICATE IT. 
          OKAY. 
          MAKES SENSE. 
          THANK YOU. 
          THANK YOU. 
          ARE YOU SEEING PROJECTS OUT THERE AND ARE WE HAVING TO COMPETE WITH ALL THESE DATA CENTER GUYS OR ARE THEY OFTEN THEIR OWN WORLD AND WE HAVE A OPPORTUNITY TO GET SOME PROJECTS OF OUR OWN? ARE YOU TALKING ABOUT THESE? YEAH, SO ESSENTIALLY WHAT HAPPENS IS PEOPLE OFTEN CALL UP, RIGHT? MIKE ENG AND TALK TO 'EM ABOUT VARIOUS THINGS AND WE'RE LIKE, WELL, WE NEED TO SEE IF THIS IS COMPETITIVE, RIGHT? SO WE NEED TO DO AN RFP. 
          SO NO, I, I THINK WE WILL GET SOME OFFERS HERE. 
          OKAY. 
          WE'LL SEE IF THEY COME AND THEY'RE REASONABLE. 
          MY IMPRESSION, PLEASE CORRECT ME, MY IMPRESSION IS A LOT OF THE, THE AI DATA CENTER PROJECTS THAT ARE GOING OUT WEST, THEY'RE LOOKING FOR PLACES THAT WILL HAVE BOTTLENECKS, TRANSMISSION BOTTLENECKS THAT WILL LEAD THEM TO VERY LOW WHOLESALE PRICES, DEPRESSED WHOLESALE PRICES, SO THEY CAN BE RIGHT NEAR THAT NODE AND SCOOP UP THOSE LOW PRICES BECAUSE THERE'S A TRANSMISSION BOTTLENECK AND THEY CAN'T TAKE IT TO MARKET ELSEWHERE. 
          SOUNDS LIKE AMARILLO  WELL, BUT BY VIRTUE OF BEING THERE, THEY WILL ALLEVIATE SOME OF THAT CONGESTION AND GIVE THEM THE LOW L AND P OTHER QUESTIONS AND THEN MAYBE THE WIND THAT'S OUT THERE WILL GET A BETTER PRICE TOO. 
          YEAH. 
          CYRUS, YOU'VE BEEN SILENT. 
          ALL I SEE IS A POUND SIGN. 
          . 
          ONE MORE QUESTION. 
          BACK IN THE GENERATION PLAN, ONE OF THE OBJECTIVES WAS FOR US TO BUILD MORE TRANSMISSION CAPACITY, AND I DON'T KNOW THAT'S NOT DIRECTLY RELATED TO THIS, BUT IT SUPPORTS THIS. 
          ARE, ARE WE DOING SOME THINGS TO HELP AND COULD WE MAYBE GET A REPORT OF WHATEVER YOU CAN SAY ABOUT THAT IT'S FEATURED? SO YEAH, TRANSMISSION IS A VERY IMPORTANT PART OF OUR IMPLEMENTATION PLAN AND OUR, IT'S PART BIG PART OF OUR WORK ALL THE TIME. 
          UM, IT JUST TAKES LONGER TO BRING TO FRUITION. 
          AND SO, UM, WE ANTICIPATE THAT THERE'S LOTS OF TRANSMISSION PROJECTS ON OUR BOOKS. 
          UM, YOU KNOW, YOU SAW, UH, A NUMBER OF, YOU KNOW, YOU SAW IN ADAM'S FINANCIAL REPORT, RIGHT? THERE WAS SIGNIFICANT INVESTMENT IN TRANSMISSION. 
          UM, AND SOME OF THOSE ARE FOR RELIABILITY. 
          SOME OF THOSE ARE FOR ESSENTIALLY INCREASING IMPORT CAPACITY. 
          UM, AND UH, WE ANTICIPATE THAT SOME OF THOSE, THE, THE, UH, BIGGEST ONE WE THINK WILL BE, UM, ONLINE AROUND 2030 OR SO WITH THE BIGGEST LIKE KIND OF EFFORT THAT WE'RE UNDERWAY TO HELP. 
          SO IT'S GOT A LONGER TIMELINE THAN SOME OF THESE OTHER, IT, IT, IT IS SOMETHING THAT COULD HELP US IMPORT MORE RENEWABLES FROM AROUND THE STATE. 
          IT, IT WILL HELP US AT OUR BOUNDARIES. 
          AND OF COURSE WE DON'T HAVE CONTROL OVER ALL THE TRANSMISSION BETWEEN WHERE THESE, YOU KNOW, RESOURCES ARE TO, TO AUSTIN ENERGY'S BOUNDARY. 
          BUT, UM, WE, WE WILL CONTROL WHAT WE CAN OKAY. 
          AND TRY TO HELP RELIEVE SOME OF THE BOTTLENECKS. 
          YEAH, IT WAS ENCOURAGING TO SEE HIS REPORT AND HOW MUCH WE WERE KIND OF OVER BUDGET ON TRANSMISSION, BUT THAT SEEMS IN MY MIND TO BE OKAY. 
          , I'LL MAKE SURE MY TEAM'S AWARE OF THAT. 
          . 
          SO HOW REALISTIC IS THE PLAN TO GET 7 65 KV TRANSMISSION LINES OUT IN THE PERMIAN BASIN TO ELECTRIFY THE PERMIAN? AND HOW MUCH WILL THAT HELP ENABLE MORE TRANSMISSION CAPACITY TO BRING WEST TEXAS WIND AND SOLAR HERE? IT'S AN EXCELLENT QUESTION, BUT NOT ONE THAT I FEEL FULLY EDUCATED TO SHARE DO WITH, YOU KNOW, WE'RE NOT PART OF ANY OF THOSE PROJECTS DIRECTLY AND SO IT'S MORE ABOUT JUST WHAT WE'RE MONITORING, BUT I THINK, I THINK SOME ASPECTS OF THEM ARE, ARE CERTAINLY FURTHER ALONG. 
          IN TERMS OF COMING TO FIRST, WILL THERE BE 87, 65 LINES COMING EAST TOWARD THE TRIANGLE? I DON'T. 
          OR IS IT JUST REALLY MORE IN THE WEST? I, THERE IS AN EASTERN COMPONENT, BUT I DON'T KNOW THAT IT'S BEEN FULLY APPROVED. 
          THAT'S MY UNDERSTANDING AS WELL. 
          I THINK IT GOES ALL THE WAY TO HOUSTON ACTUALLY. 
          OH REALLY? YEAH. 
          OH, PROBABLY FOR LNG EXPORT LOAD. 
          YEAH, SURE. 
          ELECTRIFIED BOTH ENDS. 
          YEAH, THAT MAKES SENSE. 
          OKAY. 
          ALRIGHT. 
          I'M NEXT ON THE AGENDA TOO. 
          YOU HAD TO, YOU HAD TO PUT UP THE LOGO, DIDN'T YOU? , SORRY. 
          I'LL USE THE CUSTOMER DRIVEN COMMUNITY FOCUS SLIDE NEXT TIME. 
          IT'S THE WATER SLIDE. 
          HAVING SOME FUN. 
          WELL, THAT GOT THROUGH OUR ENTIRE AGENDA. 
          WELL, ONE MORE. 
          YEAH. 
          OH, GOOD. 
          , ESPECIALLY IMPORTANT. 
          [01:00:01]
I'M TEED UP. 
          I'M GOOD TO GO. 
          GO AHEAD. 
          ALL RIGHT. 
          SO GOOD EVENING. 
          [12. Staff Briefing on Austin Energy’s Electric System Reliability Plan by Lisa Martin, Deputy General  Manager and Chief Operating Officer.  ]
LISA MARTIN, UH, AUSTIN ENERGY'S CHIEF OPERATING OFFICER, AND TONIGHT I WILL INTRODUCE YOU TO AUSTIN ENERGY'S ELECTRIC SYSTEM RESILIENCY PLAN. 
          IT'S WHAT WE USED TO CALL THE COMPREHENSIVE DISTRIBUTION RESILIENCY PLAN. 
          LET'S CLICK THROUGH THAT. 
          UH, TONIGHT'S OVERVIEW IS GONNA COVER SOME BACKGROUND, A BIT OF INSIGHT INTO OUR PROCESS, AND THEN THE HIGHLIGHTS OF THE PLAN ITSELF. 
          UM, THE PLAN IS DONE AND IT'S GOING THROUGH SOME FINAL REVIEWS. 
          WE ARE PRESENTING IT TO THE, UM, UTILITY OVERSIGHT COMMITTEE LATER THIS MONTH, AND THEN WE'LL POST THE PLAN ON OUR WEBSITE SHORTLY THEREAFTER. 
          BUT FIRST, LET'S START WITH WHY WE'RE HERE. 
          ULTIMATELY, WE'RE LOOKING TO BUILD A STRONGER, SMARTER, AND MORE RELIABLE ELECTRIC SYSTEM FOR AUSTIN. 
          AND OF COURSE, YOU'VE BEEN WITH US ALONG THAT JOURNEY. 
          UH, WE STARTED WITH TWO STUDIES, THE UNDERGROUNDING FEASIBILITY AND THE OVERHEAD RESILIENCY, UH, STUDIES, WHICH WERE COMPLETED EARLIER THIS YEAR. 
          AND THOSE STUDIES PAIRED WITH OUR EXISTING RELIABILITY PROGRAMS, SET US TO THE SWEET SPOT IN THE MIDDLE OF THIS VENN DIAGRAM, WHICH IS OUR ELECTRIC SYSTEM RESILIENCY PLAN. 
          SO FIRST, LET'S REFRESH OURSELVES ON THE KEY TAKEAWAYS FROM THE STUDIES. 
          UH, THE STUDY, UH, 1898 SAID IT WOULD COST $50 BILLION TO UNDERGROUND THE 55,000 MILES OF OVERHEAD DISTRIBUTION LINES. 
          AND OF COURSE, UNDERGROUNDING IS COMPLICATED BY MULTIPLE RISKS. 
          UH, THE STUDY SAID THAT 70% OF OUR OVERHEAD LINES, UM, EXIST IN SENSITIVE AREAS, EITHER ENVIRONMENTAL OR CULTURAL SENSITIVITIES. 
          THERE'S ALSO ROCKY SOIL THROUGHOUT MUCH OF AUSTIN, A LOT TO THE, UM, CERTAINLY TO THE WEST OF I 35 AND, UH, NOT TO MENTION THE COMPLEXITIES OF TELECOM RELOCATION. 
          THE STUDIES RECOMMENDED THAT WE DEVELOP A STRATEGIC APPROACH TO RESILIENCY, ESPECIALLY NOTING THAT OVERHEAD HARDENING IMPLEMENTATION IS FASTER, LESS EXPENSIVE, AND PROVIDES SIMILAR BENEFITS TO UNDERGROUNDING. 
          AND WHILE UNDERGROUNDING IS A CONSIDERATION AS WE MOVE FORWARD, OUR ESRP, OUR ELECTRIC SYSTEM RE RESILIENCY PLAN FOCUSES ON THE BIGGEST IMPACT IN THE SHORTEST AMOUNT OF TIME. 
          SO IT'S HEAVY ON OVERHEAD HARDENING AND ADVANCED TECHNOLOGIES. 
          SO NOW LET'S TALK ABOUT WHAT A-E-S-R-P IS. 
          IT'S A UTILITIES DOCUMENTED WORK TO STRENGTHEN THE GRID SO IT CAN BETTER WITHSTAND EXTREME WEATHER, RECOVER MORE QUICKLY, AND ADAPT TO FUTURE CHALLENGES. 
          AND MANY UTILITIES WHO HAVE ALREADY PUBLISHED THEIR PLANS SPEAK TO WHAT THEY CAN DO IN THE NEXT THREE YEARS. 
          WE'RE LOOKING TO GO A LITTLE FURTHER OUT THAN THAT, AND WE'RE GOING TO 10 YEARS WITH MORE SPECIFICITY UPFRONT AND ROOM FOR INCORPORATING LEARNINGS AS WE GO. 
          SO AUSTIN ENERGY'S PLAN IS AN INTEGRATED FORWARD LOOKING STRATEGY TO MODERNIZE AND HARDEN OUR ELECTRIC SYSTEM OVER THE NEXT DECADE, AND IT WILL FOCUS ON THE GOALS YOU SEE LISTED THERE TO THE RIGHT. 
          IN SHORT, WE'RE TRYING TO GET THE BEST OUTCOMES TO ALIGN WITH OUR COMMUNITY'S PRIORITIES AND EXPECTATIONS. 
          SO HOW DO WE KNOW THAT? WELL, WE ENGAGED THE COMMUNITY TO HEAR THEIR FEEDBACK. 
          YOU'LL RECALL CALL THE PARTNERS WHO TOLD US THAT RELIABILITY IS A TOP PRIORITY DURING THE GEN PLAN WORK, AND THEY KEPT OFTEN TALKING ABOUT THE DISTRIBUTION TYPE RELIABILITY. 
          UM, WE PULLED THOSE BACK TOGETHER AND WE ASKED THEM WHAT THEY THOUGHT ABOUT OUR APPROACHES. 
          WE ALSO INVITED THE PUBLIC TO PROVIDE FEEDBACK VIA A SURVEY AFTER WATCHING AN ONLINE VIDEO. 
          AND WE HEARD A NUMBER OF THINGS SPECIFICALLY IN THE, UM, STAKEHOLDER GROUP. 
          UH, SOME PRETTY LOUD AND CLEAR $50 BILLION TO UNDERGROUND ISN'T THE BEST USE OF FUNDS, AND THE WORK NEEDS TO BE HIGHLY STRATEGIC. 
          WE ALSO HEARD THAT THE COMMUNITY EXPECTS EQUITABLE IMPROVEMENTS ACROSS ALL NEIGHBORHOODS. 
          AND OUR DATA-DRIVEN EFFORTS WILL TARGET INVESTMENTS EQUITABLY AND REFLECT WHERE THEY MAKE THE BIGGEST IMPACT. 
          OUR OBJECTIVE IS TO HELP AS MANY PEOPLE AS QUICKLY AS POSSIBLE, AND WE'LL HAVE DATA TO ADJUST AS THE WORK CONTINUES. 
          THE COMMUNITY EXPECTS US TO BE TRANSPARENT AS WE GO THROUGH THIS PROCESS, WHICH IS CERTAINLY A REASONABLE ASK. 
          AND MANY UTILITIES, UM, DO THIS. 
          AND BY PROVIDING DASHBOARDS ON THEIR WEBSITES, WE'LL DO THE SAME TO PUT A PROGRESS TRACKER ONLINE. 
          AND THEN THE FEEDBACK EMPHASIZED THAT WILDFIRE MITIGATION IS HIGHLY IMPORTANT, MAKING TRIMMING A TOP PRIORITY WHILE ALSO BEING MINDFUL OF ECOLOGICAL SENSITIVITY. 
          OUR PLAN CONTINUES TO PRIORITIZE VEGETATION MANAGEMENT WHILE ALSO APPLYING RISK-BASED APPROACHES ALONGSIDE ENVIRONMENTAL BEST PRACTICES. 
          AND IT SPEAKS TO HARDENING SPECIALLY SUITED, UH, SPEAKS TO HARDENING THAT IS SPECIALLY SUITED TO WILDFIRE AREAS. 
          THIS SLIDE SPEAKS TO THE DECISION FRAMEWORK IN WHAT WORK TO PRIORITIZE CONSIDERING RELIABILITY, IMPACT AND RESILIENCY CONTRIBUTION, FIRST AND FOREMOST AS ONE AND TWO ARE FUNDAMENTAL TO OUR OBJECTIVES HERE. 
          THE THIRD QUESTION THAT WE'LL ASK OURSELVES, UH, DOES IT PROVIDE THE BIGGEST IMPACT FOR THE MOST CUSTOMERS? IT'S REALLY ABOUT BANG FOR THE BUCK. 
          QUESTION NUMBER FOUR BRINGS IN AN EQUITY LENS AND THE CUSTOMER CENTRIC VALUE. 
          FIVE ENSURES WE DON'T GO PAST AFFORDABILITY CONSIDERATIONS, ESPECIALLY CRITICAL DURING HARD TIMES AND SIX SPEAKS TO SOMETHING ELSE. 
          WE HEARD A LOT FROM THE COMMUNITY ENABLING MORE DISTRIBUTED RESOURCES AND EVEN DYNAMIC LOAD MANAGEMENT. 
          SO TAKING THE GOALS, THE FEEDBACK, AND THE DECISION FRAMEWORK INTO CONSIDERATION WHAT INVESTMENTS 
          [01:05:01]
MAKE THE MOST SENSE. 
          THERE'S A LOT OF INFORMATION ON THIS SLIDE. 
          I'M JUST GONNA HIGHLIGHT THE TOP, UH, COUPLE THE TOP TWO ITEMS. UH, HARDENING THE CIRCUITS, WHICH IS LIKELY NO SURPRISE AT THIS STAGE, AND MAKING A MEANINGFUL IMPACT IN TERMS OF FEWER OUTAGES. 
          THE SECOND ITEM IS SECTIONALIZING AND AUTOMATION. 
          IT'S ALSO KEY TO THE 10 YEAR PLAN. 
          OUR OBJECTIVE IS TO BE ABLE TO CREATE FASTER RESTORATION AND ADDITIONAL FLEXIBILITY FOR DIFFICULT SITUATIONS. 
          THE MIDDLE SECTION HERE SPEAKS TO SMART GRID WORK. 
          THAT'S TECHNOLOGY ESSENTIAL EFFORTS IN TODAY'S WORLD. 
          AND THE BOTTOM THREE R FOUNDATIONAL TO HAVING A STRONG GRID AND REDUCING RISK, UH, AMID AGING INFRASTRUCTURE AND CHANGING WEATHER CONDITIONS. 
          ALL RIGHT, SO THIS IS MY FAVORITE SLIDE. 
          I'LL STAY HERE FOR A LITTLE BIT. 
          IT'S ABOUT WHAT'S IN THE PLAN. 
          AND SO FIRST I WANNA HIGHLIGHT THE PLAN STRUCTURE. 
          WE TAKE A BIT OF A CRAWL, WALK, RUN APPROACH. 
          UM, IT'S A 10 YEAR PLAN, BUT IT DOESN'T PROVIDE GRANULAR PLANS FOR EVERY YEAR FROM HERE TILL THE END. 
          UH, WE HAVE AN INITIAL YEAR WHERE WE'RE TAKING A STRATEGIC APPROACH AND LOOKING TO ASSESS HOW WELL IT WORKS. 
          IT'S OUR FOUNDATION AND LAUNCH YEAR. 
          THE SECOND YEAR IS RAMP UP. 
          UM, AND THIS IS WHEN WE'LL FOCUS ON SCALING AND OPTIMIZATION. 
          AND THEN IN YEARS THREE THROUGH 10, WE HAVE FLEXIBILITY TO PLAN OUT. 
          AS THOSE YEARS COME UP, OUR TEAM WILL CONTINUE TO BUILD IN SPECIFICITY INTO THE NEAR TERM, AND WE'LL HAVE FLEXIBILITY IN THE LONG TERM ALLOWING FOR ADAPTATION AS TECHNOLOGY EVOLVES AND AS WE, UH, APPLY LESSONS LEARNED. 
          SO YEAR ONE INCLUDES HARDENING 20, CIRCUITS INSPECTING 80, I'M SORRY, 8,000 POLES AND DEPLOYING 130 SMART GRID DEVICES OR RECLOSERS OF DIFFERENT TYPES. 
          IN YEAR TWO, THE PLAN DOUBLES MANY OF THE NUMBERS, 40 CIRCUITS HARDENED, 15,000 POLES INSPECTED, AND 140 SMART GRID DEVICES. 
          AND THEN AS WE LOOK OUT TO YEARS THREE THROUGH 10, WE EXPECT TO GET THROUGH OUR SYSTEM WITH CIRCUIT HARDENING AND UPGRADES, RECLOSER DEPLOYMENT AND IMPLEMENTATION, AND BE BACK ON A MAINTENANCE CYCLE, UM, OR A DIFFERENT FORM OF UPGRADES DEPENDING ON WHAT HAPPENS OVER THE NEXT 10 YEARS. 
          BUT ALL IN ALL, THIS WILL BE A LIVING PLAN SUBJECT TO CHANGE AS CONDITIONS CHANGE EXCHANGE. 
          ALL RIGHT, OUR INITIAL BUDGET FORECAST SHOWS A $735 MILLION INVESTMENT IN OUR SYSTEM. 
          THE NUMBERS YOU SEE HERE ARE THOSE THAT ARE INCLUDED IN THE, INCLUDED IN THE APPROVED BUDGET, THE FIVE YEAR CAPITAL IMPROVEMENT PLAN BUDGET, AND ALSO THE O AND M BUDGET APPROVED FOR FY 26. 
          AND THEN WE CARRY THAT FORWARD TO COVER 10 YEARS. 
          THESE NUMBERS ARE STILL A BIT, UM, ROUGH AND I BET THEY'LL CHANGE OVER TIME AS WE APPLY THE DATA-DRIVEN FRAMEWORK, BUT FOR NOW, IT GIVES YOU A SENSE OF SCALE AND WE OF COURSE HAVE PLENTY OF WORK TO GET STARTED ON. 
          AND THEN WE'RE TRACKING, UM, F FOUR MITIGATION STRATEGIES, I'M SORRY, MITIGATION STRATEGIES FOR FOUR RISK AREAS, SUPPLY CHAIN BUDGET AND FUNDING RESOURCING AND STATE REGULATORY CHANGES. 
          IN ALL CASES, OUR YEAR BY YEAR APPROACH WILL ALLOW US TO SEE WHAT'S COMING AND PLAN AHEAD WHILE ADAPTING TO CHANGING CONDITIONS. 
          SO TO WRAP UP, WE'RE BE, WE'VE BEEN IN A PLANNING PHASE FOR SOME TIME AND WE'RE READY TO GET STARTED. 
          WE COMPLETED THE STUDIES, WE ANALYZE THE RESULTS, WE ENGAGE THE COMMUNITY, AND NOW WE'RE READY FOR OUR ACTION PHASE. 
          OUR IMMEDIATE NEXT STEPS ARE TO PRESENT TO THE CITY COUNCIL AND FINALIZE AND PUBLISH THE ESRP. 
          THEN WE'LL MOBILIZE THE FY 26 INITIATIVES AND ESTABLISH THE TRACKING MECHANISM AND GET THAT POSTED. 
          WE'RE LOOKING FORWARD TO APPROACHING THIS WORK IN A MORE COMPREHENSIVE WAY THAN WE HAVE IN THE PAST AND SEEING THE MEANINGFUL RESULTS COME TO FRUITION, WE HAVE THE RIGHT PEOPLE, WE HAVE THE RIGHT, THEY'RE ORGANIZED IN THE RIGHT WAY, AND WE'RE READY FOR THIS ACTION PHASE. 
          AND WITH THAT, I'LL END WITH A DIFFERENT SLIDE FOR YOU CHAIR, AND I'LL TAKE ANY QUESTIONS YOU HAVE,  ANY QUESTIONS ONLINE? OKAY. 
          CAN YOU GIVE US A FLAVOR OF HOW MANY DIFFERENT TYPES OF TECHNOLOGIES THAT ARE, THE BIGGER PIECES, THE RECLOSERS YOU MENTIONED MM-HMM . 
          AND I THINK THOSE CIRCUITS, WHEN YOU SAY YOU'RE GONNA UPGRADE DIFFERENT CIRCUITS, WHEN YOU SAY 20, THAT MEANS AT LEAST 20 RECLOSERS OR 20 TIMES SOME NUMBER OF RECLOSERS ALONG THE FEEDER. 
          YEAH, SO EVERY TIME YOU ASK FOR THAT LEVEL OF SPEC SPECIFICITY, IT'S GONNA REQUIRE SOME AMOUNT OF ENGINEERING ANALYSIS. 
          BUT IN BROAD STROKES, IN BROAD STROKES, WE'D LIKE TO PUT IN TWO RECLOSERS ON EVERY FEEDER TO SEGMENT THEM INTO THREE DIFFERENT MAIN PHASES, UH, OR, OR AREAS. 
          UM, IDEALLY HAVING ABOUT, YOU KNOW, A THOUSAND OR LESS CUSTOMERS ON EACH SEGMENT. 
          UM, THE, UH, LATERAL RECLOSERS ARE FOR MORE, AGAIN, ALONG THE LATERALS, UM, WHERE YOU WOULD NORMALLY HAVE A FUSE, WHEN IS IT APPROPRIATE TO HAVE, YOU KNOW, IF A SQUIRREL COMES IN BUT THEN GOES AWAY NOW I DON'T NEED TO SEND A GUY TO GO OUT AND, UH, REPLACE THE FUSE. 
          WE CAN JUST HAVE IT CLOSED BACK. 
          SO THOSE KINDS OF RECLOSERS AS WELL. 
          UM, 
          [01:10:01]
WE ALSO HAVE A COVERED CONDUCTOR IN CERTAIN SPACES, UM, AND THEN THERE'S THE, UH, YOU KNOW, THERE'S A NUMBER OF DIFFERENT, UM, DAVID SHOWED KIND OF A SCREEN OF A NUMBER OF DIFFERENT TECHNOLOGIES. 
          UM, BUT THE RECLOSERS AND THE COVER CONDUCTOR ARE, UM, SOME OF THE MAIN ONES THAT'LL, THAT'LL PROVIDE US, I THINK THE BIGGEST BANG FOR OUR BUCK INITIALLY. 
          MM-HMM . 
          AND IS THERE NEW POLE TECHNOLOGY, LIKE DIFFERENT TYPES OF CEMENT THAT ARE MORE HEARTY OR COMPOSITES THAT ARE BIG? OR IS IT JUST REPLACING OLD POLES WITH NEW POLES OF THE SAME TYPE? SO, UM, OUR POLE INSPECTION STRATEGY IS TO, UM, GO IN AND, AND, AND, UM, UH, IF YOU DON'T HAVE TO REPLACE A POLE, UM, WHICH CAN TAKE, YOU KNOW, ACCRUE SEVERAL HOURS TO DO, UM, AND INSTEAD YOU CAN REINFORCE THAT POLE, UM, THEN WE'LL APPLY THAT TRUSSING MECHANISM AND, UM, AND THAT'S MUCH QUICKER AND MUCH MORE COST EFFECTIVE AND CAN EXTEND THE LIFE. 
          UM, WE, OUR POLE INSPECTIONS WILL NOT ONLY INCLUDE, WILL NOT ONLY INCLUDE GROUND INSPECTION, BUT ALSO DRONE INSPECTION, UM, TO GET A REALLY GOOD SENSE OF, OF WHETHER OR NOT, UM, THE ASSET NEEDS TO BE REPLACED BEFORE YOU ACTUALLY, UM, SPEND THE MONEY AND THE TIME DOING SO. 
          SO OTHER QUESTIONS? YEAH, YOU, YOU'RE TALKING ABOUT DOING 20 CIRCUITS AND THEN 40 AND I, I FORGOT FROM THE PUBLIC PRESENTATION A MONTH AGO, BUT HOW MANY CIRCUITS ARE THERE ALL TOGETHER AND IT'S ABOUT 400. 
          SO YOU'RE DOING 40 A YEAR FOR HAVE CUSTOMERS FOR 10 YEARS. 
          YEP, YEP, YEP. 
          SO, SO STARTING OFF AND THEN APPLYING SOME LESSONS, SCALING UP, AND THEN MAINTAINING THAT THROUGHOUT THE 10 YEAR. 
          AND ARE YOU REPLACING ALL THE, LIKE THE DISTRIBUTION WIRE WITH INSULATED WIRE, UM, AND DOES THAT HELP WITH SQUIRRELS OR WHERE DO THE SQUIRRELS GET CAUGHT? , SQUIRRELS GET CAUGHT IN ALL KINDS OF PLACES. 
          UM, SO, UH, WE ARE LOOKING TO, UM, ESPECIALLY IN SOME OF THE OUTER YEARS TO REPLACE ALL OF OUR OPEN WIRE, UM, UH, ESPECIALLY LIKE OPEN WIRE SECONDARY THAT RUNS THROUGH A LOT OF TIMES THROUGH BACKYARDS WHERE THERE'S OFTEN A LOT OF TREES AND WHATNOT. 
          AND SO, UM, UH, THAT WILL HELP, RIGHT, WITH LIKE TREE CONTACTS AND, OR LIKE YOU SAID, SQUIRREL CONTACTS, THAT KIND OF THING. 
          MM-HMM . 
          UM, AND THEN COVERED CONDUCTOR IS, UM, UH, A LITTLE BIT MORE HARDY MORE FOR WILDFIRE PRONE AREAS AS WELL. 
          WAIT, WHAT, WHAT IS THE FIRST OPTION? OH, I SAID WE'RE GONNA REPLACE OUR, OVER OUR, OUR OPEN WIRE SECONDARY. 
          AND SO, UM, SOMETIMES THEY CALL IT TREE WIRE, WHICH IS LIKE, UM, THERE'S, THERE'S JUST A NUMBER OF DIFFERENT, LIKE ROBUSTNESS IF YOU WILL, TO THE COVERINGS THAT CAN, THE INSULATION THAT CAN GO OVER THE WIRE, BUT IT IS INSULATED MM-HMM . 
          TO SOME, TO SOME DEGREE. 
          TO SOME DEGREE. 
          WELL, NOT NOW, RIGHT? NOT ALL OF IT. 
          SOME OF IT, SOME OF IT'S AIR WIRE, BUT IT WOULD, IT WOULD ALL BE INSULATED TO WHATEVER VOLTAGE IT'S CARRYING. 
          UH, CERTAINLY, CERTAINLY SOME OF IT IS. 
          UM, IT'S KIND OF MINIMAL JUST TO, UH, PREVENT INITIAL, UM, FAULTS IF YOU WILL. 
          LIKE, LIKE I SAID, UH, THEY CALL IT, UM, SIMPLY PUT, THEY CALL IT TREE WIRE BECAUSE AS TREES GOT, MIGHT BLOW INTO IT, YOU KNOW, JUST TOUCH IT. 
          YOU DON'T WANNA, THAT'S A CAUSE A FAULT. 
          MM-HMM . 
          OKAY. 
          YEP. 
          EXCUSE ME. 
          MY CONTACT'S MESSING UP. 
          GO AHEAD. 
          OTHER QUESTIONS? ANYBODY ONLINE? SO WOULD YOU SAY THAT THAT PARTICULAR TREE WIRE, IS THAT 1247 KV OR 7.4 THAT GETS STEPPED DOWN TO 240 VOLTS THAT GOES TO THE HOUSE? A LOT OF TIMES, I THINK IT'S ALREADY THE SECONDARY, SO IT'S THE, IT'S THE ALREADY STEP DOWN RIGHT NOW IT'S OPEN WIRE, A LOT OF IT'S OPEN WIRE SECONDARY AND IT WOULD JUST BE NO LONGER. 
          SO EVEN AT TWO 40 MM-HMM . 
          I WAS SAYING ABOUT THE LITTLE SKINNY WIRE AT THE TOP THAT HAS 12,000 ON IT. 
          YOU'RE, YOU'RE TALKING ABOUT THE PRIMARY SIDE OF THE DISTRIBUTION SIDE? YEAH. 
          AND I'M TALKING ABOUT ON THE SECONDARY SIDE AS WELL. 
          HMM. 
          OKAY. 
          ALL RIGHT. 
          OTHER QUESTIONS? OKAY. 
          THANK YOU. 
          THANK YOU. 
          NEXT WAS FUTURE 
          [FUTURE AGENDA ITEMS ]
AGENDA ITEMS. AND AL YOU TALKED ABOUT TRANSMISSION UPDATES AND RFPS, RFPS FOR SOLAR AND BATTERIES OR, OR IF YOU WANNA CALL IT ALL, ALL, ALL ENERGY RFPS. 
          MM-HMM . 
          COMMISSIONER BRADEN, IF YOU WOULD JUST BE SURE TO HAVE YOUR MICROPHONE UP AND ON WHEN YOU'RE SPEAKING SO THAT IT'S PICKING YOU UP AND RECORDING. 
          I'M SORRY. 
          THANK YOU. 
          OTHER TESTING ONE. 
          OKAY. 
          , OTHER REQUEST FUTURE ITEMS? YEAH. 
          UM, I ACTUALLY THOUGHT WE WERE GONNA GET A PRESENTATION 
          [01:15:01]
THIS EVENING ON THE LINE EXTENSION POLICY. 
          DO YOU KNOW WHAT HAPPENED WITH THAT? I SENT YOU AN EMAIL, UH, TO THE WHOLE COMMISSION. 
          SO IF YOU WOULD PLEASE TAKE A LOOK AT THAT AND THEN YOU CAN FOLLOW UP WITH ME WITH ANY ADDITIONAL QUESTIONS. 
          YEAH, I CAN'T GET INTO MY CITY ACCOUNT, SO IF YOU COULD SEND THAT TO MY OTHER ACCOUNT. 
          IT'S, IT'S JUST, I LOG IN AND IT'S KICKING ME OUT. 
          I'M SORRY, I DON'T KNOW. 
          LIKE I'VE GOT MY PASSWORD. 
          COULD YOU PLEASE CONTACT CTM AND FIND OUT WHAT'S GOING ON? I'LL, THANK YOU. 
          I WILL. 
          AND IF IT GETS FIXED AND THEN IT HAPPENS AGAIN. 
          SO IF YOU CAN FORWARD IT, I'D APPRECIATE IT. 
          UM, BUT I GUESS I'M REQUESTING THAT FOR NEXT MONTH. 
          UM, I'M ASSUMING THERE'S NOT A REASON THAT WE CAN'T DISCUSS IT. 
          THANKS, GABE. 
          HERE IS, IS THAT SOMETHING WE CAN GET ON THE AGENDA? I'M GOING TO SEND YOU THE EMAIL. 
          IT HAS THE PRESENTATION CONTAINED WITHIN IT, AND IF YOU HAVE ANY ADDITIONAL QUESTIONS FROM THAT, THEN YOU CAN FOLLOW UP WITH ME. 
          BUT LET ME SEND YOU THE EMAIL AND LET'S GO FROM THERE. 
          THANK YOU. 
          SO YOU'RE SAYING WE CAN'T DISCUSS IT AT A MEETING? YOU CAN DISCUSS IT AMONG THE COMMISSIONERS YES. 
          AS A SEPARATE DISCUSSION ITEM AND NOT A STAFF BRIEFING. 
          OKAY. 
          UM, WHY THEN I'M REQUEST REQUESTING, WHY DON'T YOU LOOK AT MY EMAIL THAT I SENT. 
          I'M GONNA GET IT FORWARDED TO YOU AND THEN WE CAN GO FROM THERE. 
          I DO THE AGENDA. 
          UM, I GUESS AS A DISCUSSION ITEM, IF FOR SOME REASON STAFF WON'T DISCUSS, WHY DON'T WE TALK OFFLINE, CBA, OTHER ITEMS? WELL, STILL I JUST DID, UH, TIM HARVEY'S, CAN YOU HEAR ME? UH, TIM HARVEY'S WORKING ON, UH, A BATTERY PLAN FOR RESIDENTIAL, BUT I, I'D LIKE TO HAVE A PRESENTATION ON THAT AND SEE IF WE CAN EXPEDITE THAT. 
          UH, I THINK HAVING BATTERIES DISTRIBUTED ALL OVER TOWN COULD MM-HMM . 
          COULD GO A LONG WAY TO RESOLVING PEAK IMPORT DEMANDS AND THINGS LIKE THAT. 
          MM-HMM . 
          SO I'D JUST LIKE TO BE ABLE TO DISCUSS THAT AND HAVE A STAFF PRESENTATION AND MORE INPUT ON IT. 
          WHY DON'T WE HAVE A DER UPDATE SOMETIME IN THE NEXT QUARTER, YOU KNOW, AND THAT'S THE BATTERY. 
          'CAUSE I THINK SOME THINGS WENT AWAY. 
          THE, THE, UH, SOLAR FOR ALL WENT AWAY. 
          YEAH. 
          OR IS IT TRANSFORMED BY SOME OTHER FUNDING SOURCE? OH, IT'S PROBABLY . 
          SO THAT MAY BE, YEAH. 
          HOW ABOUT WE PUT THAT DOWN? SOME KIND OF DER UPDATE. 
          THE OTHER THING THAT'S INTERESTING IS THE, THE BASE POWER TALKS ABOUT WORKING WITH UTILITIES. 
          I'M NOT SURE HOW THAT WOULD WORK, AND I DON'T EVEN KNOW WHO TO TALK TO ABOUT THAT. 
          MAYBE, UH, TALK TO TIM SEPARATELY OR YEAH, I ENCOURAGE YOU TO TALK TO STAFF. 
          YEAH, I MEAN, I, I HAVE, THERE WAS A PRESENTATION AT UT LAST WEEK BY THE, ONE OF THE WIZARDS. 
          I CAN GIVE YOU HIS EMAIL IF YOU WANT TO TRY TO TALK TO HIM. 
          OKAY. 
          I, I WOULD JUST WONDER HOW THEY WOULD IMPLEMENT IT WITHIN A, WITHIN A UTILITY. 
          AND THEY'VE DONE IT WITH BLUE BONNET. 
          THEY'RE DOING IT. 
          UH, ACTUALLY I THINK IT'S, UM, BAND, BANDERA. 
          BANDERA. 
          OH, THEY WERE TOTAL, IT'S A TOTAL AGREEMENT. 
          HMM. 
          OKAY. 
          WELL I'D LIKE, YEAH, LET ME HAVE THAT INFORMATION. 
          I'D LIKE TO TALK TO HIM. 
          OTHER ITEMS. OKAY, WITH THAT, THIS ADJOURN AT SEVEN 20. 
          THANK YOU ALL. 
          THANK.
* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.