May 19, 2026 Austin Energy Utility Oversight Committee

THANK YOU, MAYOR.

[00:00:01]

UH, WE HAVE A PACKED AGENDA BOTH ON THE WORK SESSION AND ON THE, UH, COMMITTEE TODAY.

UM, BECAUSE OF THAT, WE WILL NOT HAVE, UH, PUBLIC PRESENTATIONS ON THE QUARTERLY FINANCIAL OPERATIONS REPORTS.

THEY ARE IN THE BACKUP.

UH, BUT JUST IN THE INTEREST OF TIME AND, AND MOVING THROUGH THE MEETING, WE'RE GONNA GO AHEAD AND, UH, UH, UH, JUST HAVE THOSE ON PAPER AND NOT HAVE PUBLIC PRESENTATIONS.

UH, AE STAFF IS HERE IN THE ROOM.

IF Y'ALL HAVE ANY QUESTIONS, PLEASE, UH, TOUCH BASE WITH THEM OR PLEASE COMMUNICATE WITH US.

[Public Communication: General]

PLEASE CALL THE SPEAKERS.

YES, SIR.

UM, WE HAVE FIVE SPEAKERS STARTING WITH HAYDEN BAGOT, SECOND TREY SALINAS, THIRD, PAUL ROBBINS, MAYOR WATSON, CHAIR VELA COUNCIL MEMBERS.

MY NAME IS HAYDEN BAGOT AND I'M HERE REPRESENTING THE COALITION FOR CLEAN, AFFORDABLE, RELIABLE ENERGY OR CCARE.

I'M ALSO A DISTRICT NINE RESIDENT.

I'M HERE TO FIRMLY SUPPORT THE AUSTIN ENERGY GENERATION PROPOSALS THAT ARE UP FOR YOUR CONSIDERATION THIS THURSDAY ON THE WIND.

PPA CCARE IS VERY MUCH IN THE PRO RENEWABLE CAMP AND ENCOURAGES CONTINUED INVESTMENT AND SUSTAINABLE POWER.

THESE RESOURCES ARE ABUNDANT AND PUSH PRICES LOWER, AND IT'S PROMISING THAT THEY'RE MEETING LARGER SHARES OF STATEWIDE DEMAND.

THIS INVESTMENT ALSO COMES IN THE NICK OF TIME WITH WIND AND SOLAR TAX CREDITS EXPIRING SOON ON THE BATTERY CONTRACT.

YOUR APPROVAL ON THURSDAY WOULD PUT AUSTIN ENERGY WELL ABOVE ITS 2027 GOAL AND CLOSE TO ITS 2030 GOAL OF 300 MEGAWATTS.

AS ERCOT CONTINUES TO BREAK BATTERY DISCHARGE RECORDS, THE BENEFITS ARE INCREASINGLY CLEAR.

BATTERIES RAMP UP TO BALANCE SHORT-TERM DEMAND SPIKES SERVE AS AN EFFECTIVE TOOL IN THE MARKET AND PROVIDE AN ADDITIONAL BUFFER FROM EMISSIONS.

BUT IT'S THE LIMITATIONS OF THESE TWO RESOURCES AND OTHER RENEWABLES THAT MAKE THE FINAL ITEM SO ESSENTIAL TO OUR ELECTRIC UTILITY.

THAT'S WHERE GAS PEAKERS STEP IN PEAKERS ARE A LAST RESORT AND INSURANCE MEASURE AGAINST LONG DURATION HIGH DEMAND EVENTS WORKING TO MITIGATE CONGESTION COSTS AND CORRECT THE RELIABILITY CHALLENGES OUR LOCAL GRID ROUTINELY EXPERIENCES, WHETHER IT'S PROVIDING VOLTAGE SUPPORT, OFFSETTING PRICE SEPARATION, EXPEDITING TRANSMISSION INVESTMENTS, OR BEING BLACKSTAR CAPABLE BATTERIES IN THEIR CURRENT FORM AREN'T ABLE TO MEET THESE NEEDS WHEN THEY RUN DRY.

THAT'S WHY THE MODELING SHOWS MORE THAN 10 TIMES THE RELIABILITY RISK HOURS AND DOUBLE THE FINANCIAL RISK WITHOUT PEAKERS.

THAT'S WHY RESIDENTIAL ELECTRIC BILLS ARE PROJECTED TO BE TWICE AS MUCH IF YOU SOLELY RELY ON BATTERIES FOR LOCAL DISPATCHABLE GENERATION.

SIMPLY PUT PEAKERS HELP FILL IN THE GAPS WHEN LOCAL POWER SUPPLY FALLS SHORT.

THANK YOU.

GOOD MORNING.

UH, CHAIRMAN VELA, MEMBERS OF THE, UH, OVERSIGHT COMMITTEE AND CITY COUNCIL.

MY NAME IS TREY SALINAS.

I'M A CHAMBER OF COMMERCE BOARD MEMBER, BUT ALSO HERE TODAY ON BEHALF OF THE COALITION FOR CLEAN, AFFORDABLE, AND RELIABLE ENERGY, WHICH IS ESSENTIALLY A COALITION OF YOUR COMMERCIAL AND INDUSTRIAL CUSTOMERS.

AND COMMERCIAL IS EVERYTHING FROM A SMALL FLOWER SHOP, BOWLING ALLEY, COFFEE SHOP TO ADVANCED MANUFACTURING.

IT'S ALL OF IT.

UM, WE'RE GONNA, I'M GONNA SAVE MOST OF MY COMMENTS FOR THURSDAY.

WE'D LIKE TO SEE HOW THE DISCUSSION GOES TODAY, BUT AS HAYDEN JUST POINTED OUT, AND I WANNA STRESS, UM, CCARE HAS BEEN PROUD TO SUPPORT YOUR RENEWABLE ENERGY PLANS FOR MORE THAN 20 YEARS NOW.

WE HAVE TESTIFIED MULTIPLE TIMES IN FAVOR OF RENEWABLE CONTRACTS, BATTERIES, ALL OF IT, AND WE LOOK FORWARD TO CONTINUING THAT SUPPORT IN THE FUTURE.

BUT AS YOU JUST HEARD, PEAKERS ARE GONNA BE AN IMPORTANT PART OF THE BALANCE.

SO WITH THAT, I WANTED TO LET YOU KNOW THAT, UH, MYSELF, HAYDEN, A COUPLE OF OTHER UTILITY EXPERTS, UH, FROM THE COMMUNITY CHAMBER AND OTHERS ARE HERE TODAY FOR THE OVERSIGHT COMMITTEE, THE WORK SESSION.

WE'RE JUST SIGNED UP ONE TIME, BUT JUST TO LET YOU KNOW THAT IF YOU HAVE QUESTIONS OF THE COMMERCIAL AND INDUSTRIAL CLASSES, WE'RE HERE.

THANK YOU.

OUR LAST THREE SPEAKERS ARE PAUL ROBBINS, STEPHANIE CHAVEZ, AND JEN CRAIG ARE COUNSEL.

UH, THIS IS A SHORT SPEECH ON RESIDENTIAL.

UH, COULD YOU PLEASE CUE THE PRESENTATION? THIS IS A SHORT SPEECH ON RESIDENTIAL ELECTRIC RATES AND ELECTRIC RATE TRANSPARENCY.

COULD YOU PLEASE CUE THE PRESENTATION? OKAY.

CAN YOU START MY TIME? UH, CAN YOU START MY TIME PLEASE? OKAY.

THIS IS A SHORT SPEECH

[00:05:01]

AUSTIN ENERGY'S RESIDENTIAL ELECTRIC RATES ROSE 29%, BUT DUE TO THE REGRESSIVE NATURE OF THE RATE DESIGN RATES ROSE UNEQUALLY IN VARIOUS COUNCIL DISTRICTS WHILE THEY ROSE 20% IN DISTRICT 10, THEY ROSE BETWEEN 31 AND 34% IN DISTRICTS 3, 4, 6, 7, AND NINE SLIDE.

THESE REGRESSIVE RATES ADVERSELY AFFECT THE MAJORITY OF RATE PAYERS IN EVERY SINGLE COUNCIL DISTRICT, RANGING FROM 63% WITH ABOVE AVERAGE RATE INCREASES IN DISTRICT 10 TO 81% IN DISTRICT NINE, THEY PAY MORE.

SO PEOPLE IN LARGE AIR CONDITIONED HOMES CAN HAVE LOWER RATE INCREASES.

SLIDE ONE REASON IS THAT THE MONTHLY CUSTOMER CHARGES WENT UP WHILE RATE TIERS WITH HIGHER CONSUMPTION STAYED FLAT IN 2025.

THIS CHART COMPARES CUSTOMER CHARGES IN LARGE TEXAS MUNICIPAL UTILITIES.

AUSTIN ENERGY IS CONSIDERABLY HIGHER SLIDE.

DURING THE LAST BUDGET, THE PUBLIC WAS TOLD THAT EVEN THOUGH RATES WOULD GO UP, FUEL WOULD GO DOWN AND HENCE BILLS WILL GO DOWN, WOULD GO DOWN.

THIS SLIDE SHOWS THAT AUSTIN ENERGY'S CLAIMED OF THE CLAIMED FUEL COST WAS 5.30 CENTS PER KILOWATT HOUR.

IT'S WHAT THEY PRESENTED IN THE BUDGET SLIDE, BUT IN FACT, ACCORDING TO THIS MEMO, IT WAS 4.35 CENTS, MEANING THAT BILLS WERE ACTUALLY HIGHER THIS YEAR THAN LAST YEAR SLIDE.

THE PLAIN FACT IS AUSTIN ENERGY HATES PROGRESSIVE RATES THAT ENCOURAGE CONSERVATION AND HEALTH REPORT.

HERE IS THE UTILITIES RATE PROPOSAL IN 2022.

ON THE LEFT, YOU SEE A DIFFERENTIAL OF 8 CENTS PER KILOWATT HOUR BETWEEN THE LOWEST AND HIGHEST TIERS, UH, FOR EXISTING FOR THE EXISTING RATE.

AND ON THE RIGHT, AUSTIN ENERGY'S PROPOSAL RECOMMENDED ONLY A 1 CENT DIFFERENTIAL PER KILOWATT HOUR SLIDE.

THE RESOURCE MANAGEMENT COMMISSION RECOMMENDS THAT GOING FORWARD RATE INCREASES SHOULD BE THE SAME ON THE MONTHLY CUSTOMER CHARGE AND ALL FOUR CONSUMPTION TIERS.

THIS WILL EVEN OUT INCREASES IN COUNCIL DISTRICTS.

WE RECOMMEND FUTURE RATE INCREASED PROPOSALS, SHOW HOW THEY AFFECT EACH DISTRICT, AND WE RECOMMEND A FULL RATE CASE THIS YEAR, IF AT ALL POSSIBLE.

UM, FINAL SLIDE.

UH, I REMIND YOU THAT AUSTIN ENERGY IS MORE THAN A BUSINESS.

PEOPLE ARE.

ITS REAL.

BOTTOM LINE.

THANK YOU.

MY NAME IS STEPHANIE.

I LIVE IN DISTRICT EIGHT.

I'M A MOTHER OF TWO.

I WORK IN AUSTIN AS AN EDUCATOR AND ARTIST, A PARTNER WITH FAMILIES, YOUNG PEOPLE, PARENTS, CLIMATE COMMUNITY.

AND I'M A VOLUNTEER ON THE LOCAL CLEAN AIR COALITION.

I ASK COUNCIL TO PAUSE THE GAS PEAKER PROPOSAL UNTIL AN INDEPENDENT THIRD PUBLIC THIRD PARTY ANALYSIS IS RELEASED THAT COMPARES CARBON FREE ALTERNATIVES AND FULLY QUANTIFIES HEALTH AND CLIMATE AND ECONOMIC IMPACTS.

AUSTIN ENERGY MUST FOLLOW PROCUREMENT AND PUBLIC NOTICE RULES.

THE SCALE OF INVESTMENT CANNOT BE DECIDED BEHIND CLOSED DOORS OR BY A HANDFUL OF PEOPLE WITHOUT FULL TRANSPARENCY TO EVERYONE, INCLUDING RATE PAYERS.

THESE GAS PEAKERS ARE BEING SHORTLISTED FOR COMMUNITIES ALREADY BURDENED BY ENVIRONMENTAL JUSTICE IN THE RESOURCE GENERATION AND CLIMATE PROTECTION PLAN.

IT STATES THAT THE SITES FOR NEW INFRASTRUCTURE WOULD AIM TO AVOID HISTORICALLY IMPACT IMPACTED COMMUNITIES, AND THAT IS NOT HAPPENING.

DECKER CREEK POWER STATION SITS DIRECTLY ACROSS THE STREET FROM TWO ELEMENTARY SCHOOLS, A MIDDLE SCHOOL, MULTIPLE APARTMENT COMPLEXES, AND GROWING RESIDENTIAL NEIGHBORHOODS ON AN ESPECIALLY HOT AST AF AUSTIN AFTERNOON.

WHEN KIDS ARE WALKING HOME OR PLAYING OUTSIDE, PEAKERS WILL CYCLE ON AND RELEASE THE HIGHEST AMOUNT OF TOXIN IN TOXINS INTO THE AIR.

AND THE HOTTER THE DAY IS THE LOWER THE PARTICULATE MATTER HANGS AROUND ONE WORSENING REGION WIDE AIR QUALITY.

CHILDREN BREATHE FASTER, THEIR LUNGS ARE SMALLER, THEIR DEFENSE MECHANISMS ARE STILL DEVELOPING, AND THEY ABSORB MORE POLLUTION PER BODY MASS, AND THEY FACE HIGHER RISKS OF RESPIRATORY HARM AND IMPACTS TO COGNITIVE AND DEVELOPMENTAL

[00:10:01]

THERE'S AN ECONOMIC STORY HERE TOO.

RELYING ON MORE FOSSIL FUEL PEAKERS RISKS, HIGHER LONG-TERM COSTS FOR RATE PAYERS AND WOULD COMPROMISE AUSTIN'S PATH TO A HUNDRED PERCENT CARBON FREE BY 2035.

THE PRICE TAG FOR THIS BUILD OUT IS TOO LARGE TO BE DISCLOSED TO JUST A FEW.

COUNCIL MUST MAKE THE MODELS AND ASSUMPTIONS PUBLIC AND INCLUDE HEALTH AND CLIMATE, UH, EXTERNALITIES.

AS AN ARTIST, I BELIEVE IN IMAGINING BETTER FUTURES.

THERE ARE CREATIVE AND PROVEN OPTIONS.

UTILITY SCALE BATTERIES, DEMAND RESPONSE, VIRTUAL POWER PLANTS, DEEP EFFICIENCY, ALL THINGS THAT MUST BE SCALED AND DEPLOYED.

THE CHEAPEST ENERGY IS THE ENERGY WE DON'T USE.

AND ENERGY SOLUTIONS LIKE THESE PROTECT CHILDREN'S HEALTH, ADVANCE OUR CLIMATE GOALS AND, AND STEWARD PUBLIC DOLLARS RESPONSIBLY.

PLEASE PAUSE.

THIS PROPOSAL REQUIRE A TRANSPARENT THIRD PARTY FEASIBILITY AND COST ANALYSIS THAT INCLUDES HEALTH AND ECONOMIC IMPACTS, AND FULLY EXPLORE CARBON FREE ALTERNATIVES.

BEFORE COMMITTING TAXPAYER FUNDS, WE NEED TO CHOOSE CLEAN INNOVATION OVER OUTDATED FOSSIL FUEL INFRASTRUCTURE, PROTECT CHILDREN'S HEALTH, AND AVOID INCREASING EC ECONOMIC IMPACTS FOR THE ENTIRE COMMUNITY.

THANK YOU.

THANK YOU VERY MUCH.

OUR LAST SPEAKER, JEN CRAIG GAR.

GOOD MORNING.

MY NAME IS JEN KRIEGER.

I'M A DISTRICT FOUR RESIDENTS.

I'M ASKING YOU TO VOTE A RESOUNDING NO ON AUSTIN ENERGY'S RUSHED AND IMP PRUDENT REQUESTS FOR SPENDING MY AND ALL OF YOUR RATE PAYER DOLLARS ON POLLUTING AND INCREASINGLY EXPENSIVE GAS FIRED PEAKER PLANTS.

THERE ARE MANY FINANCIAL AND GOOD GOVERNANCE REASONS WHY YOUR VOTE ON THURSDAY SHOULD BE A HARD NO.

I'M GOING TO DEFER TO OTHERS TO SHARE THOSE CONCERNS AND INSTEAD FOCUS ON OUR EXISTING CLIMATE AND CLEAN AIR COMMITMENTS THAT I HAVE PERSONALLY WORKED ON.

GOING BACK TO 2007, THE AUSTIN CLIMATE EQUITY PLAN DOCUMENTS OUR COMMUNITY'S COMMITMENT TO ACHIEVING NET ZERO GREENHOUSE GAS EMISSIONS BY 2040 AND IDENTIFY SPECIFIC STRATEGIES TO GET US THERE.

IDEALLY BY 2030, AUSTIN ENERGY'S GENERATION PLAN IS SUPPOSED TO BE ITS CONTRIBUTION TOWARDS THIS COMMUNITY-WIDE CARBON REDUCTION COMMITMENT.

UNFORTUNATELY, IN 2024, THE MOST RECENT YEAR FOR WHICH COMPLETE PUBLIC DATA IS AVAILABLE, WE WERE 51% ABOVE OUR EMISSIONS TARGET AND PUMPING OUT CO2 EMISSIONS EQUIVALENT TO BURNING NEARLY 13 BILLION POUNDS OF COAL IN JUST ONE YEAR.

RIGHT HERE IN AUSTIN, 41% OF THOSE EMISSIONS CAME FROM PRODUCING ELECTRICITY AND BURNING NATURAL GAS.

SO WE'RE OFF TRACK.

WE ARE REALLY FAR OFF TRACK, AND AUSTIN ENERGY IS PROPOSING WORSENING OUR SITUATION BY INTRODUCING A BRAND NEW SOURCE OF CARBON EMISSIONS AND THE FORM OF UP TO 400 MEGAWATTS OF NEW GAS PEAKER PLANTS, OF WHICH WE KNOW VIRTUALLY NOTHING.

AUSTIN ENERGY IS TRYING TO JUSTIFY THIS NEW INVESTMENT IN FOSSIL FUELS BY SAYING THAT THE NEW GAS PLANTS THAT THEY PLAN TO BUILD WILL BE MORE EFFICIENT AND THEREFORE LESS POLLUTING THAN THE EXISTING ONES THEY ALREADY HAVE.

IT'S TRUE THAT THESE NEW UNITS, IF APPROVED, WOULD HAVE A LOWER EMISSIONS RATE, BUT WHAT THEY'RE NOT SAYING IS THAT THE PROPOSED NEW GAS PEAKERS WILL BE FAR MORE COMPETITIVE IN THE ERCOT MARKET AND THEREFORE WILL RUN MORE THAN THE EXISTING UNITS THAT ARE MORE EXPENSIVE TO OPERATE.

AND AT THE VERY PICKIEST TIMES, BOTH THE REQUESTED NEW UNITS AND THE OLDER DIRTIER UNITS WILL RUN UNLESS FURTHER CONSTRAINTS ARE IMPOSED, LIKE REQUIRING THE OLD UNITS TO BE RETIRED OR UPDATING THE EMISSIONS GUARDRAILS FROM THE GEN PLAN TO USE A ROLLING AVERAGE EMISSIONS BASELINE TO DRIVE CONTINUOUS IMPROVEMENT WITHOUT CONSTRAINTS LIKE THESE, AUSTIN ENERGY WILL LIKELY BURN MUCH MORE GAS, EVEN IF DOING SO MORE EFFICIENTLY AND END UP BLOWING OUR CLIMATE AND AIR QUALITY GOALS.

SO BEFORE CONSIDERING AUSTIN ENERGY'S GAS PEAKER PROPOSAL, FURTHER, I'M ASKING YOU MAYOR AND COUNCIL TO REQUIRE A THIRD PARTY ANALYSIS OF HOW INVESTING IN MORE CARBON-BASED FOSSIL FUELS WILL IMPACT ACHIEVING OUR EXISTING COMMITMENTS TO CARBON FREE ENERGY, CLEAN AIR, AND A HEALTHY LIVABLE FUTURE FOR ALL OF US.

THANK YOU.

THANK YOU, UH, TO ALL THE SPEAKERS.

UH, AND WE'LL GO AHEAD AND MOVE ON

[Approval of Minutes]

UH, ITEM ONE IS THE APPROVAL OF THE MINUTES FROM THE MARCH 24TH, 2026 MEETING.

THE MINUTES ARE IN THE, UH, BACKUP.

UH, AND I HAVE A MOTION FROM COUNCIL MEMBER UCHIN AND A SECOND FROM COUNCIL MEMBER ELLIS.

ALL THOSE IN FAVOR, PLEASE INDICATE BY RAISING YOUR HAND UNANIMOUSLY.

PASS THE MINUTES.

[00:15:01]

[2. General Manager’s Report - 2025 Annual Report, ERCOT Load Forecast, Expanding Austin Energy’s Portfolio, and Recent and Upcoming Council Items [Stuart Reilly, General Manager - Austin Energy].]

MR. RILEY, THE FLOOR IS YOURS.

ALL RIGHT.

GOOD MORNING.

THANK YOU CHAIR, VICE CHAIR COMMITTEE MEMBERS.

I'M STUART RILEY AUSTIN, ENERGY GENERAL MANAGER, UM, FOR MY REPORT THIS MORNING.

UM, WHILE WE'RE GETTING THAT PULLED UP, UM, FOR MY REPORT THIS MORNING, I'LL QUICKLY MENTION OUR ANNUAL REPORT.

THEN I'LL GIVE A A BRIEF HOLISTIC VIEW OF SOME OF THE ENERGY LANDSCAPE HERE IN TEXAS.

AND THEN I'LL COVER SOME ACTIONS TO EXPAND OUR CLEAN ENERGY PORTFOLIO.

LET'S SEE IF THIS REMOTE WORKS.

ALL.

ALRIGHT.

SO FIRST ON OUR ANNUAL REPORT.

THIS WAS PUBLISHED RECENTLY AND IT'S A GREAT RESOURCE TO SEE HOW WE'RE PERFORMING ON SOME OF OUR, UH, KEY METRICS AND INITIATIVES.

SOME HIGHLIGHTS OF THE REPORT INCLUDE OUR LEADERSHIP AND CARBON FREE POWER GENERATION, OUR RESILIENCY AND RELIABILITY METRICS THAT ARE FAR BETTER THAN STATEWIDE AVERAGES AND AUSTIN ENERGY HAVING THE MOST AFFORDABLE BILLS IN ERCOT.

OTHER HIGHLIGHTS INCLUDE OUR RESOURCE GENERATION PLAN ACTIONS THAT INCLUDE RECORD NEW RECORDS IN LOCAL SOLAR INSTALLED, AS WELL AS DE LOCAL DEMAND RESPONSE AND THE, UH, COMPLETION OF THE CONTRACT FOR A FOUR HOUR, A HUNDRED MEGAWATT BATTERY, 400 MEGAWATT HOUR BATTERY, AND RELATED TO RELIABILITY AND RESILIENCY.

THE REPORT HIGHLIGHTS, UH, THE COMPLETION OF OUR COMPREHENSIVE 10 YEAR, UH, $735 MILLION ELECTRIC SYSTEM RESILIENCY PLAN, AND IT HIGHLIGHTS SOME OF OUR RESPONSE ACTIVITIES RELATED TO THE MAY MICROBURST STORM, WHICH WAS THE SECOND MOST DESTRUCTIVE STORM IN AUSTIN ENERGY HISTORY.

MOVING ON TO, UM, SOME OF WHAT'S GOING ON ACROSS THE STATE, I WANNA TALK ABOUT THE ERCOT FORECAST THAT WAS, UH, RELEASED LAST MONTH.

ERCOT ALL TIME PEAK DEMAND RECORD IS AROUND 85,500 MEGAWATTS, ABOUT 85 GIGAWATTS.

THEIR PRELIMINARY LONG-TERM FORECASTS BASED ON INFORMATION THAT'S BEEN SUBMITTED TO ERCOT AND, UM, STUDIES THAT HAVE BEEN PAID FOR, SUGGEST THAT THE FORECAST DEMAND WOULD BE RISING TO ABOUT 368 GIGAWATTS OF DEMAND IN THE ERCOT REGION WITHIN THE NEXT FIVE OR SIX YEARS.

AND WHAT'S CLEAR FROM THIS FORECAST IS THE ERCOT GRID IS NOT GOING TO QUADRUPLE IN SIZE IN THE NEXT FIVE OR SIX YEARS.

UM, THERE'S A LOT OF UNKNOWNS OUT THERE, BUT WHAT'S ALSO CLEAR IS THE ERCOT GRID IS SET TO GROW IN A, IN A MASSIVE WAY, UH, PARTICULARLY IN THE TEXAS TRIANGLE.

AND EVEN IF ERCOT FORECAST IS OFF AND IT'S ONLY A THIRD OF WHAT'S EXPECTED, IT WOULD STILL BE ERCOT DOUBLING IN SIZE, UH, DURING THIS PERIOD OF TIME.

AND SO THIS CAN MAKE IT MORE DIFFICULT FOR US TO IMPORT POWER AND HIGHLIGHTS WHY WE ARE MOVING SO QUICKLY.

AND SO, UM, THOROUGHLY TO PROTECT OUR CUSTOMERS WITHIN THIS INTERCONNECTED TRANSMISSION SYSTEM AS WE HAVE TO PREPARE FOR GROWING LOAD.

UM, I DO WANNA MENTION THAT AS WE LOOK AT LOAD GROWTH IN OUR SCENARIOS, AND WE'LL BE TALKING ABOUT THAT.

UM, YOU KNOW, GOING FORWARD THIS WEEK, UH, WE ARE NOT GETTING ANYWHERE CLOSE TO THIS LEVEL OF DEMAND.

I JUST WANT FOLKS TO KNOW WE ARE NOT ASSUMING THIS IN, IN OUR LOAD PROJECTIONS.

UM, AND, AND WE ARE NOT EXPECTING LOAD TO GROW ANYWHERE CLOSE TO THIS.

HOWEVER, THIS IS JUST INSTRUCTIVE OF DIRECTIONALLY WHERE EVERYTHING IS GOING IN THE ERCOT MARKET.

AND THEN I, I ALSO WANT TO TALK ABOUT WHY WE'RE SO FOCUSED, UH, ON OUR RESOURCE PLAN OR HOW WE'RE MOVING FORWARD ON SOME RECENT ACTIONS AND SOME UPCOMING COUNCIL ACTIONS THAT ARE COMING THIS WEEK.

UM, OF COURSE, IN OCTOBER, COUNCIL APPROVED A HUNDRED MEGAWATT FOUR HOUR BATTERY.

UM, THAT CONTRACT IS SIGNED AND THE CONTRACT PARTNER IS MOVING FORWARD.

IN ADDITION, LAST MONTH COUNCIL APPROVED A SOLAR PROJECT IN PARTNERSHIP WITH AUSTIN RESOURCE RECOVERY ON A CLOSED CITY OF AUSTIN LANDFILL.

AND COUNCIL APPROVED A 40 MEGAWATT BATTERY PROJECT, UH, DISTRIBUTED BATTERY CONTRACT WITH BASE POWER COMPANY.

THE BASE CONTRACT WAS FULLY EXECUTED YESTERDAY AND BASE IS VERY EXCITED TO GET GOING.

ALSO, THIS WEEK WE HAVE TWO WIND ENERGY CONTRACTS COMING TO COUNCIL FOR APPROVAL FOR A TOTAL OF 299 MEGAWATTS OF WIND ENERGY.

UH, THESE, THIS, THESE ARE NOT LOCAL RESOURCES, BUT THESE WILL ADD TO OUR CARBON FREE PORTFOLIO.

AND WE'RE BRINGING FORWARD ANOTHER 100 MEGAWATT TWO HOUR BATTERY CONTRACT.

THIS CAME OUT OF THE ALL RESOURCE RFP.

THE PROPOSAL IS FOR TWO HOUR BATTERY STORAGE.

AND WITH THIS BATTERY AGREEMENT WE'LL NOW HAVE IN THE PIPELINE A TOTAL OF 240 MEGAWATTS OF BATTERY STORAGE.

UH, AND THAT BLOWS PAST THE 125 MEGAWATT GOAL THAT WAS, UH, ADOPTED IN THE RESOURCE GENERATION PLAN AND CHAIR.

THAT'S WHAT I HAVE FOR YOU.

IF YOU HAVE ANY QUESTIONS, HAPPY TO ANSWER.

THANK YOU, UH, VERY MUCH.

UH, MEMBERS, ANY QUESTIONS? UM, QUICK QUESTION, IF YOU DON'T MIND FLIPPING BACK TO THE SLIDE ON THE CLEAN ENERGY PORTFOLIO.

[00:20:02]

ANOTHER A HUNDRED MEGAWATT BATTERY CONTRACT ON THIS NEXT AGENDA THIS, THIS THURSDAY.

YEAH.

UH, AND UH, SO THAT'S REALLY DOES BLOW PAST THE 125 MEGAWATT A BATTERY GOAL THERE.

THE, ONE OF THE A HUNDRED MEGAWATT, UH, CONTRACTS IS FOR FOUR HOUR BATTERIES.

THE OTHER ONE IS FOR TWO HOUR BATTERIES.

COULD YOU JUST EXPLAIN A LITTLE WHAT THAT MEANS AND HOW THE BATTERIES WORK? UM, YEAH, SURE.

THE, WELL, FIRST OF ALL, THE, UM, THE, THE DURATION IS BASED ON THE OFFERS THAT WE'RE GETTING.

UH, WE GET A LOT MORE TWO HOUR BATTERY OFFERS THAN FOUR HOUR BATTERIES.

WE LIKED THE ECONOMICS OF THE FOUR HOUR BATTERY OFFER.

UM, WE LIKED THE WAY, UH, IT COULD OFFER A LONGER DURATION OPTION AND HOW THAT COULD, UH, HELP OUR PORTFOLIO AND HOW IT COULD OPERATE IN THE ERCOT MARKET.

BUT BASICALLY WHAT THAT MEANS IS YOU CAN GET A UP TO A HUNDRED MEGAWATTS FOR FOUR HOURS FROM THE FOUR HOUR BATTERY.

UM, SO 400 MEGAWATT HOURS TOTAL, BUT IT CAN BE, UH, DEPLOYED AT A HUNDRED MEGAWATTS, UH, FOR THAT, FOR THAT DURATION.

IT TAKES, IT ALSO TAKES FOUR HOURS TO FULLY RECHARGE IT.

MM-HMM .

SO THE TWO HOUR BATTERY IS HALF AS BIG AS THE FOUR HOUR BATTERY.

IT CAN OPERATE AT A, IT CAN PROVIDE A HUNDRED MEGAWATTS TO THE GRID, UM, FOR A DURATION OF TWO HOURS.

AND OF COURSE WE CAN DEPLOY LESS OF IT AND HAVE IT LAST LONGER.

YOU JUST, YOU KNOW, YOU COULD DEPLOY, UH, 50 MEGAWATTS FOR TWICE AS LONG, FOR EXAMPLE.

OKAY.

GOT IT.

AND JUST FOR CONTEXT, WHAT'S A KIND OF AN AVERAGE DAILY USE, UH, FOR, UH, FOR AUSTIN ENERGY? IN TERMS OF THE, THE MEGAWATTS THAT WE NEED? UM, AVERAGE DAILY USE IS, IS, UM, LIKELY AROUND 2000.

UM, MEGAWATTS.

OUR PEAK IS, IS ABOUT 3,100.

SO, UM, IN TERMS OF WHERE, WHERE, YOU KNOW, THIS IS, THIS IS A CHALLENGE IN THE INDUSTRY BECAUSE YOU REALLY NEED TO PLAN FOR YOUR PEAK.

SURE.

SO WHEN WE LOOK AT WHAT OUR PORTFOLIO NEEDS TO HAVE IN IT, WE'RE LOOKING AT BEING ABLE TO MEET OUR REQUIREMENTS FOR THOSE PEAK DAYS, THAT 3,100 MEGAWATTS, BUT MOST OF THE TIME YOU DON'T NEED THAT ENTIRE AMOUNT.

UM, AND WE'RE SEEING THAT THAT PEAK IS, IS INCREASING, IT IS INCREASED IN RECENT YEARS, AND IT'S GOING, IT'S FORECASTED TO INCREASE RAPIDLY AS WELL.

ALRIGHT, THANK YOU, UH, VERY MUCH.

THANK YOU.

AND

[3. Briefing on Austin Energy Transmission Planning Process and Capital Improvement Plan. [David Tomczyszyn, Vice President of Electric System Engineering and Technical Services - Austin Energy].]

UH, PLAN BY, UH, DAVID, UH, TOM CHEEN.

WELL, GOOD MORNING COUNSEL.

UM, UH, CHAIR, VICE CHAIR.

UM, MY NAME IS DAVID TOM CHESON.

I'M VICE PRESIDENT OF ELECTRIC SYSTEM ENGINEERING AND TECHNICAL SERVICES AT AUSTIN ENERGY.

UM, AS REQUESTED AS THE LAST, UH, UTILITY OVERSIGHT, UH, MEETING, I'M HERE TO TALK ABOUT PLANNING, DESIGNING, AND CONSTRUCTING, UH, TRANSMISSION LINES IN, UM, IN PARTICULAR NARCO.

NEXT SLIDE, PLEASE.

TODAY I'LL GIVE A BRIEF OVERVIEW OF THE AE SYSTEM, DISCUSS THE PLANNING PROCESS, TALK ABOUT A'S FIVE YEAR CAPITAL PLAN, UH, CHALLENGES TO BUILDING TRANSMISSION, AND THEN A BIT ABOUT OUR RESOURCE GENERATION PLAN.

NEXT SLIDE, PLEASE.

YOU'VE SEEN THIS SLIDE BEFORE, SO I WON'T GO OVER ALL OF IT FROM LEFT TO RIGHT.

YOU HAVE TRANSMISSION DISTRIBUTION ALL THE WAY, UH, TO OUR CUSTOMERS ON, ON, ON THE RIGHT.

UH, WHAT I'D LIKE TO HIGHLIGHT FOR YOU TODAY IS HOW MUCH TRANSMISSION AE OWNS.

UM, WE OWN 600 AND, UH, 30 MILES OF TOTAL TRANSMISSION, NOT JUST HERE IN AUSTIN, UH, BUT ACROSS TEXAS, INCLUDING DOWN TO THE COAST.

WE HAVE A VARIETY OF VOLTAGES, UM, 69 KV, WHICH IS 69,000 VOLTS.

WE HAVE 138 KV AND THREE, UH, 3 45 KV.

AND AS VOLTAGE GOES UP, UH, SO DOES THE AMOUNT OF POWER THAT A LINE CAN TRANSPORT.

NEXT SLIDE PLEASE.

A QUESTION I OFTEN GET ASKED IS, WHY DOESN'T AE TALK MORE PUBLICLY ABOUT TRANSMISSION UPGRADES? UH, IN SHORT, IT'S, IT'S TWO REASONS.

THE FIRST ONE IS NERC RECOGNIZES TRANSMISSION IS CRITICAL PROTECTED INFRASTRUCTURE.

UH, WE DON'T WANT BAD ACTORS TO KNOW TOO MUCH ABOUT KEY INFRASTRUCTURE THAT THE POWER CENTRAL TEXAS, INCLUDING 570,000, UH, AUSTIN ENERGY CUSTOMERS.

THE, THE SECOND IS THE PUBLIC UTILITY COMMISSION.

AND ERCOT REQUIRE US TO MAINTAIN A FAIR AND OPEN MARKET.

HAVING INFORMATION BEFORE ALL MARKET PARTICIPANTS COULD GIVE SOMEONE AN UNFAIR ADVANTAGE WHEN IT COMES TO ENERGY TRADING IN ERCOT.

NEXT SLIDE PLEASE.

NOW A LITTLE BIT ABOUT THE ERCOT GRID.

IN, IN, IN MARKET TRANSMISSION LINES ARE THE SUPER HIGHWAYS FOR ELECTRIC POWER AND TEXAS AE IS A TRANSMISSION OWNER, AND ERCOT IS THE OPERATOR POWER WE PRODUCE IS UPLOADED TO THE GRID AND THEN BOUGHT BACK OR DOWNLOADED HERE IN AUSTIN.

THOSE MARKET TRANSACTIONS AND SETTLEMENTS ARE GOVERNED BY ERCOT.

NEXT SLIDE, PLEASE.

[00:25:02]

UH, AUSTIN ENERGY, LIKE OTHER TRANSMISSION OWNERS HAVE VERY SMART PLANNING, UH, DEPARTMENTS.

MANY FULL OF PHDS LIKE OURS, UH, THAT YEAR ROUND ARE CONSTANTLY RUNNING STATIC AND DYNAMIC STUDIES, SOME TAKING DAYS TO SOLVE TO RELIABILITY AND ECONOMICALLY SERVE OUR CUSTOMERS.

THOSE STUDIES FOCUS ON IMPROVEMENTS, UH, FOR THINGS LIKE RELIABILITY, RESILIENCE, ECONOMICS, AND REGULATED OPEN ACCESS IN THE FORM OF INTERCONNECTION REQUESTS.

THESE STUDIES ARE NECESSARY TO SHOW HOW A PROPOSED PROJECT WILL IMPACT THE ELECTRIC GRID.

THE GRID IS HIGHLY INTERCONNECTED, WHERE A A ONE LOCAL CHANGE AND ONE PORTION OF THE GRID CAN HAVE FAR REACHING IMPACTS, POSITIVE OR NEGATIVE TO OTHER PORTIONS.

BUT THE GOOD NEWS IS OUR PLANNING DEPARTMENT HAS THIS COVERED, AND EACH YEAR THEY RECOMMEND TRANSMISSION PROJECTS, UH, AND PRIORITIZE THEM BASED ON, ON NEED THESE PROJECTS, UH, THEN ENTER THE ERCOT TRANSMISSION PLANNING PROCESS.

NEXT SLIDE PLEASE.

ERCOT TRANSMISSION PLANNING PROCESS IS A, IS A FORMAL PROCESS WHERE THEY TAKE ALL THE PROJECTS PROPOSED BY, BY ERCOT INTERNALLY, AS WELL AS THE TSPS TRANSMISSION SERVICE PROVIDERS, UM, SUCH AS ALL SYNERGY, ENCORE, LCRA, ET CETERA.

AND THEY CLASSIFY THEM INTO FOUR TIERS BASED ON COST AND COMPLEXITY.

THIS IS A PUBLIC PROCESS WHERE ALL MARKET PARTICIPANTS ARE NOTIFIED AND ONLY THE BEST OVERALL SOLUTIONS CONSIDERING IMPACT AND COST ARE ENDORSED BY ERCOT.

TIER ONE IS THE MOST EXPENSIVE AND COMPLEX AT ABOUT A HUNDRED MILLION DOLLARS PLUS AND TIER FOUR, WHICH IS, WHICH IS NOT SHOWN, UH, ON THE SLIDE, IS THE LEAST COMPLEX, WHICH IS AND UNDER, UH, UNDER, AT, UH, UNDER 25 MILLION, UH, DOLLARS WITH NO EASEMENTS BEING REQUIRED.

UNFORTUNATELY, MANY OF OUR PROJECTS TO IMPROVE IMPORT CAPACITY HERE, HERE IN AUSTIN ARE, ARE, UH, LIKELY THE TIER ONE.

SO THE, THE MOST COMPLEX TIER TWO AND THREE FALL RIGHT IN THE MIDDLE, DEPENDING, UH, IF AN EASEMENT IS REQUIRED, OR IN PARTICULAR IF A-C-C-N-A CERTIFICATE OF CONVENIENCE AND NECESSITY, UH, BY THE PUBLIC UTILITY COMMISSION, WHICH IS A SEPARATE PROCESS, UH, FROM FROM ERCOT.

THE P THE, UH, PUBLIC UTILITY COMMISSION IS LOOKING FOR ERCOT ENDORSEMENT BEFORE GRANTING, UH, A CCN.

AND OBTAINING A CCN CAN BE A LENGTHY PUBLIC PROCESS WHERE THE, THE PUBLIC UTILITY COMMISSION REVIEWS THE PROJECT MERITS AND THEN DETERMINES THE FINAL TRANSMISSION ROUTE.

THIS APPROVAL IS REQUIRED TO CONDEMN TRANSMISSION EASEMENTS OUTSIDE OF CITY LIMITS.

NEXT SLIDE, PLEASE.

SO, HOW LONG DOES IT TAKE TO BUILD AND UPGRADE A TRANSMISSION LINE IN ERCOT? UNFORTUNATELY A WHILE, ERCOT SAYS THREE AND A HALF TO SIX YEARS UNDER THE BEST CASE SCENARIO BETWEEN PLANNING CCN IF, IF, IF NEEDED, UH, EASEMENT ACQUISITION DESIGN, MA MATERIAL PROCUREMENT, UH, PROCUREMENT, AND OBTAINING THE REQUIRED TRANSMISSION OUTAGES TO SAFELY CONSTRUCT LINES.

HOW ARE WE HAVE STARTED SEEING THESE NEEDED CONSTRUCTION OUTAGES, WHICH, UH, DO NOT RESULT IN CUSTOMERS LOSING POWER, BEING DENIED OR SPLIT UP BY, UH, UH, SPLIT UP EXTENDING THE PROCESS UPWARDS OF EIGHT YEARS IN SOME EXTREME CASES.

THIS IS PARTICULARLY THE CASE WITH LINE UPGRADES.

IN SHORT, WE'RE NOT IN FULL CONTROL OF OUR PROJECT TIMELINES.

NEXT SLIDE, PLEASE.

AS FOR CHALLENGES, WE, WE'VE SPOKEN ABOUT MOST OF THESE, UM, TIME, IT TAKES A WHILE.

CCNS, IF REQUIRED, MUST FOLLOW THE REGULATORY APPROVAL PROCESS.

AGAIN, THIS IS A SEPARATE, UH, PUC, UM, PROCESS FROM ERCOT AND CAN ADD, UH, ONE TO ONE TO TWO YEARS, UH, SUPPLY CHAIN ALONG, UH, LEAD TIME EQUIPMENT.

UH, THINGS HAVE DEFINITELY IMPROVED, BUT EQUIPMENT LEAD TIMES ARE STILL TWO TO THREE TIMES WHAT THEY WERE PRE PRE COVID.

AND FINALLY, OBTAINING CONSTRUCTION OUTAGES.

UH, I JUST WANTED TO HIGHLIGHT THIS A LITTLE BIT MORE, UH, BEING, WE'RE STARTING TO SEE, SEE THIS IN THE LAST FEW YEARS.

UH, THERE'S A BIT OF A CHICKEN AND EGG SCENARIO HERE.

UM, SOME OF THE MOST ABUNDANT CLEAN ENERGY IN TEXAS IS WIND AND SOLAR TO THE WEST AND, UH, WIND ALONG THE COAST.

AND WE NEED TO IMPORT MORE OF THAT HERE IN AUSTIN.

UH, TO DO THIS, WE AND OTHER UTILITIES NEED TO UPGRADE, UH, TRANSMISSION LINES, UH, TO REMOVE CONGESTION POINTS THROUGHOUT ERCOT.

BUT THIS, UH, CAN REQUIRE CONSTRUCTION OUTAGES TO DO SO.

ONE OF THE CHALLENGES WE NOW FACE IS BEING DENIED THESE NEEDED CONSTRUCTION OUTAGES BECAUSE WE, WE DON'T ALREADY HAVE ENOUGH LOCAL GENERATION IN AUSTIN, APPROVING THEM COULD PUT THE GRID AT RISK DURING CONSTRUCTION UNDER CERTAIN CONTINGENCIES.

SO TO GET THE NEEDED CONSTRUCTION OUTAGES TO UPGRADE OUR TRANSMISSION LINE, TO ENABLE US TO IMPORT MORE CLEAN ENERGY, WE NEED MORE LOCAL GENERATION, ALL TYPES.

NEXT SLIDE, PLEASE.

SO WHAT ARE OUR STUDIES TELLING US? HERE'S A HIGH LEVEL LOOK AT THE POWER FLOWS IN AND OUT OF AUSTIN.

YOU'LL NOTICE, UH, A PEAK OF, UH, 3,100 MEGAWATTS AND I'LL, I'LL DRAW YOUR ATTENTION TO THE CENTER OF THE SCREEN, BUT 3,100, UH, MEGAWATTS AT PEAK, AND WE ONLY HAVE

[00:30:01]

THAT MEANS THE REMAINDER MUST BE IMPORTED.

MOST OF THAT COMES FROM THE SOUTH AND EAST, AS YOU CAN SEE WITH, UM, THE, THE YELLOW ARROWS, UH, THERE WITH THE HIGHER NUMBERS.

UM, AND WE HAVE SEVERAL PROJECTS UNDERWAY TO UPGRADE, UH, CONGESTION LINES WE OWN TO IMPORT MORE CLEAN ENERGY IN THE COMING YEARS, ASSUMING WE CAN GET THE REQUIRED OUTAGES.

NEXT SLIDE, PLEASE.

AND WHILE WE DON'T TALK ABOUT TRANSMISSION PUBLICLY MUCH, WE ARE WORKING FEVERISHLY BEHIND THE SCENES.

WE HAVE OVER, UH, OVER $500 MILLION OF TRANSMISSION PROJECTS IN OUR FIVE-YEAR PLAN.

THAT'S A HUNDRED MILLION DOLLARS A YEAR.

300, APPROXIMATELY 360% OF IT WILL DIRECTLY IMPROVE AUSTIN'S IMPORT CAPACITY.

SOME OF THESE UPGRADES INCLUDE RE CONDUCTORS, ESTABLISHING NEW IMPORT PATHS, NEW SWITCHY YARDS, AND INCREASING VOLTAGE.

NEXT SLIDE PLEASE.

SO A FEW, UH, A FEW KEY TAKEAWAYS.

UH, ONE, AUSTIN ENERGY IS COMMITTED TO UPGRADING TRANSMISSION INFRASTRUCTURE TO INCREASE OUR IMPORT CAPACITY.

TWO, TRANSMISSION TAKES TIME, EVEN UNDER THE BEST CASE.

SCENARIO THREE, WE'RE PART OF ERCOT AND OUR, UH, AND ARE NOT FULLY IN CONTROL OF PROJECTS SELECTED OR THE TIMELINES.

UH, FOUR TRANSMISSION CONGESTION HAPPENS THROUGHOUT ER, ERCOT, AND CONGESTION OUTSIDE OF AUSTIN CAN AFFECT OUR ABILITY TO IMPORT POWER TO TO AUSTIN.

AND THEN FINALLY THERE, THERE'S NO SILVER, SILVER BULLET.

AS AN ENGINEER, I'M, I'VE ALWAYS HAD A, A PLAN A, B, C, UH, BEING.

YOU NEVER KNOW WHAT'S GONNA BE RIGHT AROUND THE CORNER.

WE NEED EVERY TOOL IN OUR TOOL BELT AND WE CAN'T PIN OUR HOPES ON A, ON A SINGLE SOLUTION.

THAT'S NOT GOOD ENOUGH.

WE MUST HAVE MULTIPLE CONCURRENT SOLUTIONS.

NEXT SLIDE, PLEASE.

FINALLY, I JUST WANT TO TIE THIS BACK TO THE RESOURCE GENERATION PLANNED IT TO 2035, WHICH, UH, WE WILL BE DISCUSSED MORE TODAY.

IN THE SAME WAY WE HAVE MULTIPLE PATHS, UH, FORWARD FOR TRANSMISSION IMPROVEMENTS.

THE RGP IS OUR ALL IN APPROACH TO, TO CLEAN ENERGY, UH, TO OUR CLEAN ENERGY FUTURE.

AS YOU CAN SEE, INCREASING, UH, TRANSMISSION IMPORT CAPACITY IS JUST ONE, UH, UH, ONE OF THE THINGS IN THE RPG THAT WE ARE IMPLEMENTING.

NEXT SLIDE, PLEASE.

I THINK THAT'S MY FINAL SLIDE.

AND, UH, THANK YOU FOR YOUR TIME AND HAPPY TO ANSWER ANY QUESTIONS.

UH, THANK YOU VERY, UH, VERY MUCH.

UH, DAVID, UH, ANY QUESTIONS FROM THE COMMITTEE COUNCIL MEMBER? ALTER, YOU TOUCHED ON THIS A LITTLE BIT, BUT I WAS HOPING YOU COULD PROVIDE A LITTLE MORE CLARITY AROUND WHAT EXACTLY FROM A TRANSMISSION PERSPECTIVE IS.

DO WE CONTROL THAT? YOU KNOW, YOU TALKED ABOUT THE INVESTMENTS WE'RE MAKING VERSUS WHAT IS KINDA MORE THAT OUTSIDE OF OUR CONTROL SUBJECT TO THE OTHER TRANSMISSION, UH, PROVIDERS IN THE CITY, SO, OR NOT IN THE CITY, IN THE STATE.

SO WHAT, WHAT ARE THE KIND OF THE BOUNDS OF THE LINES THAT WE'RE RESPONSIBLE FOR VERSUS ERCOT OR SOMEONE IN THE ERCOT MARKET? SURE.

UH, GREAT, GREAT QUESTION.

UM, SO, UH, ALL OF THE, THE TSPS TRANSMIT SERVICE PROVIDERS ARE, YOU KNOW, THEY'RE DOING THEIR STUDIES TO FIGURE OUT WHAT, YOU KNOW, UH, WHAT THEY NEED TO SERVE THEIR CUSTOMERS, AND THEY PRIORITIZE THOSE PROJECTS AND, AND PUT IT UP TO ERCOT.

ERCOT IS, IS LOOKING AT THOSE.

AND IF THERE'S TWO PROJECTS THAT THAT OVERLAP, YOU KNOW, ADDRESSING, YOU KNOW, THE SAME NEED IN ERCOT AND, YOU KNOW, BUT IT MAY HAVE, ONE MAY LEND ITSELF TO, UM, MORE BENEFITS FOR, YOU KNOW, UH, ONE OF THE ENTITIES OR THE OTHER.

EITHER WAY, THERE'S, THEY'RE SITTING BACK AND WHAT'S, WHAT'S THE BEST OVERALL SOLUTION CONSIDERING COST? AND, YOU KNOW, JUST IN AN IMPACT.

AND, AND WITH THAT, THEY, THEY, THEY TYPICALLY WILL ENDORSE THE, YOU KNOW, THE, THE MOST, UH, ECONOMICAL SOLUTION TO, TO MEET, YOU KNOW, MEET THE NEEDS.

AND SO FROM A STANDPOINT IS, YOU KNOW, AS, AS, AS FAR AS PROJECTS CLOSER TO AUSTIN, UM, WE, UH, MOST OF THE LINES WE OWN, BUT WE ALSO HAVE LCRA AND SO FORTH.

YOU KNOW, THEY'RE, THEY'RE ALSO PROPOSING PROJECTS THAT, UM, MAY, THEY MAY HELP US, UH, UH, SOME, YOU KNOW, THEY DEFINITELY MAY, MAY, UM, UH, ADDRESS A CONSTRAINT, BUT IT MAY NOT, UM, MEET OUR LONG-TERM NEEDS AND SO FORTH.

BUT AT THE END OF THE DAY, AS ARCH COTS LOOKING AT THAT AND MAKING THAT DECISION, UH, AS YOU GET FURTHER OUTSIDE OF TEXAS, UM, WE CAN REQUEST ANY PROJECT.

BUT, BUT, UM, IT DOES START WITH, YOU KNOW, WHO ARE YOU TAPPING INTO? SO IF WE DON'T HAVE ANY LINES IN THAT AREA, AND THERE'S A CONGESTION POINT, AND WE SAY, NOW AUSTIN ENERGY WANTS TO BUILD A LINE FROM, UM, ONE TSP TO ANOTHER TSP OR SO FORTH, EVEN IF THAT WAS, UM, RECOMMENDED, THEY, UH, GENERALLY IT WOULD BE PUSHED TO THOSE TSPS TO PHYSICALLY DO THAT WORK ON WHATEVER TIME SCHEDULE, BUDGET AND SO FORTH.

AGAIN, IS, UH, WE ARE PART OF ERCOT AND WE, YOU KNOW, WE'RE A TRANSMISSION OWNER, BUT WE'RE NOT FULLY IN CONTROL.

UH, ERCOT IS LOOKING AT THE BIG PICTURE.

UM, AND OF COURSE WE ARE PUSHING, UH, AND RECOMMENDING PROJECTS THAT, UM, YOU KNOW, SOLVE CONGESTIONS IN ERCOT, BUT, BUT ULTIMATELY BENEFIT OUR CUSTOMERS THE BEST.

SO DO WE HAVE THE AUTHORITY TO PROPOSE TO ERCOT TRANSMISSION LINES ANYWHERE IN THE STATE? I RECOGNIZE THERE ARE COST CONSTRAINTS, BUT IS THERE A, A, A GEOGRAPHIC LIMITATION

[00:35:01]

I KNOW YOU, YOU MENTIONED LIKE A GENERATION STATION, UH, THAT NORMALLY WOULD JUST TAP INTO A LINE.

UM, YOU KNOW, ERCOT MOST LIKELY WOULDN'T APPROVE AN EXPRESS LINE, YOU KNOW, FROM AUSTIN JUST BECAUSE OF, OF COST AND, AND THE LANDOWNERS AFFECTED.

BUT, UM, I, YOU KNOW, MY, UH, I DON'T THINK THERE'S ANYTHING PRECLUDING US FROM, BUT GENERALLY SPEAKING, THEY WOULD THEN GO, UH, IF IT'S A, YOU KNOW, AN A EP OR SO FORTH THAT OWNS IT, THEY WOULD GO TO THEM AND ASK THEM TO BUILD IT IF IN FACT THAT IS, UM, A, A, A ADVISABLE PROJECT AND THEY'D HAVE TO AGREE TO, TO MOVE FORWARD WITH AS WELL.

AND THEN THINKING ABOUT THOSE LINES OUT TO WEST TEXAS, PARTICULARLY, YOU KNOW, THE CREST LINES AND OTHERS ARE, WHAT IS THE CURRENT PLAN IN TERMS OF EITHER RECONDUCTORING UPGRADING OR JUST BUILDING NEW? CAN YOU KIND OF GIVE US THE MAYBE FIVE YEAR HORIZON? WHAT ARE WE LOOKING AT IN TERMS OF THE TRANSMISSION CAPACITY INCREASE IN THE STATE AND HOW THAT'LL IMPACT US? SO THERE'S A LOT OF ACTIVE PROJECTS, UH, THAT ARE BEING PROPOSED AT ERCOT.

AND, UM, AND EVEN THE RULES ARE, YOU KNOW, UH, YOU KNOW, CONSTANTLY, UH, CHANGING.

THEY'RE, THEY'RE PUTTING CAPS ON, YOU KNOW, UH, HOW MUCH YOU CAN GET REIMBURSED FOR, FOR DIFFERENT THINGS, UM, DEPENDING IF YOU'RE A GENERATOR AND SO FORTH.

BUT, UH, SPECIFICALLY AUSTIN, UM, IF YOU, IF YOU LOOK AT THE AUSTIN AREA, UM, THE PICTURE, YOU KNOW, THAT I SHOWED OUT THERE, THAT WAS THE, THE, THE KIND OF THE ZOOMED OUT PICTURE.

SO, UM, THE, THE SYS THE TRANSMISSION SYSTEM ISN'T PARTICULARLY STRONG ON THE WEST SIDE OF AUSTIN.

IT, IT IS JUST NOT, AND A LOT OF POWER DOES FLOW ACROSS AUSTIN AND THEN, AND THEN CONTINUES OUT TO THE, TO THE WEST.

UM, IT, IT'S NOT THAT THERE ISN'T ENERGY IN, IN, IN THE WEST, BUT IT IS ROUTED KIND OF MORE, UH, A LITTLE BIT NORTH AND SOUTH OF US AT THIS TIME.

UM, AND SO OUR PROJECTS ARE FOCUSED ON, YOU KNOW, UH, WHERE IT'S GONNA MOVE THE NEEDLE.

AND FROM A STANDPOINT IS, IS IMPROVING IMPORT CAPACITY.

UM, YOU KNOW, WE'RE LOOKING AT ALL, ALL PLACES, BUT, UH, WE DO HAVE SOME VERY STRONG SOURCES FROM THE SOUTH AND, AND FROM THE, UM, EAST, UH, WE JUST NEED TO, UM, YOU KNOW, INCREASE VOLTAGE AND, YOU KNOW, MINIMIZE OR ELIMINATE REALLY IS, UM, SOME OF THOSE CONGESTION POINTS.

UM, YOU MAY HAVE HEARD THINGS LIKE 7 65 AND SO FORTH, AND A LOT OF PEOPLE ARE LIKE, WELL, IT IS GONNA COME AND, AND, YOU KNOW, SOLVE EVERYBODY'S PROBLEMS, YOU KNOW, AND IT IS, IT IS DEFINITELY GONNA CHANGE, UH, UH, FOR, FOR EVERYBODY.

THERE'S, THERE'S NOT CURRENTLY A 7 65 LINE IN ERCOT, YOU KNOW, 3 45 IS THE LARGEST, SO THAT, THAT HAS RECENTLY BEEN APPROVED, BUT IT'S JUST GETTING STARTED.

AND FROM A STANDPOINT IS, UM, YOU KNOW, IT'S, IT, YOU KNOW, IN THE, UH, UH, TENS OF BILLIONS OF DOLLARS, YOU KNOW, FOR, YOU KNOW, THE TOTAL LINE, UH, ROUTING, UH, UH, I'VE SEEN SOME ROUTING, UM, OUT TO THE WEST, UH, SOME PROPOSED ROUTING AGAIN, UM, THE PUBLIC UTILITY COMMISSION WILL DETERMINE THE FINAL ROUTE.

SO EVEN IF WE SAY WE WANT TO GO, YOU KNOW, HERE TO THERE AND 'CAUSE IT, YOU KNOW, IT'S A STRAIGHT LINE, IT MAKES THE MOST SENSE.

UM, UH, THE PUBLIC UTILITY COMMISSION MAY, MAY TELL US THAT WE NEED TO GO AROUND SOMETHING, YOU KNOW, A PARTICULAR LANDOWNER OR, UM, OR AN ENVIRONMENTAL, YOU KNOW, SO FORTH.

UM, UH, LIKE A, YOU KNOW, SOMETHING THAT IS IDENTIFIED IN THE STUDY.

UM, BUT, UH, BUT THE 7 65 LINES, UM, WE DO THINK THAT, YOU KNOW, THAT IS SOMETHING THAT, YOU KNOW, UH, MANY YEARS OUT COULD BE SOMETHING TO TAP INTO, TO PIN OUR HOPES ON THAT RIGHT NOW, I THINK WOULD BE A LITTLE PREMATURE.

I DON'T EVEN KNOW IF IT'S GONNA END UP BEING ON THE WEST SIDE OR THE EAST SIDE.

UH, IT LITERALLY IS JUST A LINE ON A MAP RIGHT NOW, AND THAT'S NOT A TRUE ROUTING.

UH, ONCE IT COMES DOWN TO ROUTING, IT COULD GO EITHER, YOU KNOW, EITHER WAY.

UM, BUT, UH, BUT WHEN IT'S HERE, UM, THAT DEFINITELY WILL BE SOMETHING WE'LL BE, UH, CONSIDERING TAPPING INTO AS WELL.

BUT, BUT AGAIN, AS YOU KNOW, AS I, I SPOKE ABOUT ALL, UH, YOU KNOW, MULTIPLE PATHS TO OUR, YOU KNOW, CLEAN ENERGY FUTURE, WE NEED IT ALL.

AND, YOU KNOW, WE NEED TO, UH, ADDRESS THE, UH, CONGESTION SO WE CAN GET MORE CLEAN POWER HERE, UH, ECONOMICALLY AND TO, TO AUSTIN, UNFORTUNATELY, LIKE AGAIN, THAT'S WHAT WE'RE STRUGGLING WITH IS GETTING THE OUTAGES TO, ESPECIALLY WHEN WE WANT TO, UH, REBUILD A LINE IN PLACE FROM THE SAFETY RECORDS.

SO BOTTOM LINE, YOU HAD THAT MAP OF WHAT'S COMING IN AND WHAT'S GOING OUT, WHAT DO WE EXPECT? AND I DON'T KNOW WHAT THE PROPER HORIZON IS, WHETHER THERE'S FIVE YEARS, SIX YEARS, BUT IN, IN WHATEVER TIME HORIZON YOU THINK IS MOST APPROPRIATE THAT WE CAN PLAN FOR, WHAT IS OUR IMPORT CAPACITY INCREASE GOING TO BE OVER KIND OF THAT MEDIUM TIMEFRAME? IT'S, IT, IT'S, IT'S, IT IS HARD TO SAY THE, HERE, HERE'S THE REASON WHY IT'S HARD TO SAY IS ERCOT DOES PUBLISH, UM, MODELS EVERY YEAR THAT, YOU KNOW, ARE PROVIDED TO THE TSPS TO, TO RUN.

AND ONE'S A, YOU KNOW, A A SHORT TERM AND OTHER ONE'S A LONG TERM, AND YOU, AND YOU, AND THAT'S ALL YOU CAN GO ON, IS, IS BASICALLY PROJECTS THAT THEY BELIEVE WILL BE BUILT AND, AND, AND SO FORTH.

THAT BEING SAID, IT'S VERY DYNAMIC.

AND SO I, I CAN, UH, WITH COMPLETE CERTAINTY, I CAN SAY IS WE WE'RE GONNA BE ABLE TO IMPORT A LOT MORE CAPACITY, UH, INTO TO AUSTIN.

IT'S HARD TO QUANTIFY THE EXACT AMOUNT.

AND THE REASON IS, IS BECAUSE IT IS, YOU KNOW, THE GRID IS KIND OF A LIVING, YOU KNOW, YOU KNOW, YOU, YOU CHANGE THIS OVER HERE AND YOU THINK, WELL, IT'S JUST GONNA INCREASE IMPORT CAPACITY.

IT MAY CAUSE A CONSTRAINT.

OR ANOTHER WAY TO LOOK AT IT IS, UH, AS WE REMOVE ONE CONSTRAINT, THERE MAY BE ANOTHER ONE DOWN

[00:40:01]

AND SO, YOU KNOW, YOU TAKE CARE OF THE BIGGER ONE, BUT THEN YOU STILL MAY HAVE ANOTHER ONE DOWN LINE OR SO, OR IT MAY BE ANOTHER, UH, TSP THAT WE'RE, UM, UH, DEPENDENT ON TO CLEAR THAT AND THEY NEED TO PUT IT ON THEIR PROJECT TIMELINE AND SO FORTH.

SO, UM, UH, WE ARE, WE WILL BUILD TO AND IMPORT SIGNIFICANTLY MORE.

IT'S REALLY HARD TO QUANTIFY HOW MUCH THOUGH, AND, AND I, I GET YOUR, YOU'RE HEDGING HERE, BUT AT A CERTAIN POINT, LIKE, WE'RE RUNNING MODELS BASED ON WHAT WE THINK IS GOING TO HAPPEN.

SO A NUMBER HAS TO GO IN, WE CAN'T TYPE IN, WELL, IT'S GONNA BE MORE, BUT NOT SURE, UH, AND THE MODEL, IT WOULDN'T WORK, RIGHT? SO WHAT, WHAT IS OUR NUMBER? WHAT ARE WE, INCLUDING MODELING? WHAT DO WE THINK IS GOING TO HAPPEN? AND I'M NOT SAYING THAT YOU'RE GONNA BE A HUNDRED PERCENT RIGHT ON THAT, BUT GIVE US, GIVE US A SENSE OF WHAT WE ARE ACTUALLY INPUTTING INTO OUR MODELS.

UH, TODAY, I DON'T, I DON'T HAVE THAT EXACT, UH, NUMBER I HAVE TO GIVE WITH MY, UH, TRANSMISSION PLANNING TEAM TO, TO, UM, YOU KNOW, AND AGAIN, AS IT'S, YOU KNOW, THEY DON'T HAVE A CRYSTAL BALL, THEY HAVE THE MODELS, UM, THERE'S THINGS THAT ARE OUTSIDE OF THEIR CONTROL.

AND AGAIN, AS EVEN, EVEN AS WE'RE MODELING STUFF, UH, THERE MAY BE OTHER CONSTRAINTS THAT WE DON'T EVEN KNOW ABOUT IT.

UM, YOU KNOW, AGAIN, AS WE, YOU KNOW, IT'S, UM, UH, FROM A MARKET PARTICIPANT STANDPOINT, WE'RE ONLY, UH, AWARE OF OTHER, UM, TSPS PROJECTS WHEN THEY'RE PUT IN THE MODEL.

AND SO THERE COULD BE OTHER CONSTRAINTS.

UM, AND, AND HERE'S AN EXAMPLE OF IT IS, UM, WHILE WE'RE NOT SEEING, YOU KNOW, YOU KNOW, THE, THE HYPERSCALERS HERE IN AUSTIN, UM, THAT OUR OTHER PEERS ARE SEEING THROUGHOUT ERCOT, IF A HYPERSCALER, YOU KNOW, UM, DROPS IN JUST EAST OF TOWN OR, OR, YOU KNOW, WEST OF TOWN OR SO FORTH, IT CAN CHANGE THE FLOWS DRAMATICALLY.

AND IT THEREFORE THAT'S, THAT'S REALLY WHY IT'S REALLY HARD TO, UM, TO BOIL IT DOWN TO A SINGLE NUMBER.

BUT, WELL, I, I APPRECIATE, IT'S VERY INTERESTING.

I'M, I'M REALLY INTERESTED TO SEE WHERE THIS GOES.

AND YES, SIR.

THANK YOU FOR YOUR PRESENTATION.

THANK YOU, CUSTOMER SIEGEL.

THANK YOU CHAIR.

AND, UH, THANKS SO MUCH FOR THE PRESENTATION.

AND, UH, JUST A BRIEF FOLLOW UP TO COUNCILMAN ALTER'S QUESTIONS.

I MEAN, THIS IDEA OF THE PUC OF TEXAS, UM, YOU KNOW, ALLOWING THESE VERY HIGH VOLTAGE TRANSMISSION LINES SEEMS VERY ATTRACTIVE, RIGHT? YOU KNOW, 'CAUSE ONE OF THE THINGS WE KEEP HEARING IS WE HAVE THESE WONDERFUL RENEWABLE ASSETS FAR AWAY THAT CAN BE STRANDED.

WE CAN'T GET THE ELECTRICITY, UH, SOMETIMES WHEN WE NEED IT MOST.

AND SO, ARE YOU BASICALLY SAYING THAT THERE'S NO WAY TO PREDICT WHEN OR IF THESE HIGH VOLTAGE TRANSMISSION LINES WOULD HELP GET US OUR ENERGY TO, TO AUSTIN? UH, IF, IF YOU TURN AROUND AND TELL ME, YOU KNOW, UH, WOULD THEY, YOU KNOW, BE AVAILABLE IN 10 YEARS? I COULD, I COULD PROBABLY SAY, YEAH, I THINK, UM, THAT'S REASONABLE.

UM, I THINK THEY HAVE VERY AGGRESSIVE TARGETS RIGHT NOW FOR THE MILES THAT NEED TO BE, UM, UH, BUILT.

I MEAN, PART OF IT'S, YOU GOTTA DO THE ENVIRONMENTAL STUDIES TO UNDERSTAND, YOU KNOW, YOU KNOW, HOW THE ENVIRONMENT WOULD BE IMPACTED.

UM, YOU HAVE TO, TO NOT JUST GET THE PERMISSION, BUT, UM, PICK THE ROUTE AND THEN GO ACQUIRE ALL THOSE EASEMENTS, UH, IN ORDER TO DO IT.

AND WE'RE TALKING, YOU KNOW, VERY, VERY LONG LINES.

AND SO FROM A STANDPOINT IS, UM, YEAH, I DO, I DO THINK THAT THE, UH, WHAT THEY'RE TARGETING IS, IS, UM, YOU KNOW, IN JUST A, YOU KNOW, FIVE YEARS OR SO FORTH IS A, IS A BIT AGGRESSIVE.

UM, BUT I DO THINK IT WILL, UH, IT'LL DEFINITELY CHANGE, UH, UH, FLOWS IN AUSTIN.

HOW MUCH AND HOW MUCH WILL THAT AFFECT AUSTIN? UM, UH, YOU KNOW, I, I DON'T KNOW AT THIS TIME.

I MEAN, EVEN FROM A MODEL STANDPOINT, THERE'S NOT ANYTHING IN THE MODEL TO REALLY MODEL AT THIS TIME.

'CAUSE IT DOESN'T, YOU KNOW, IT DOESN'T EXIST AND IT'S MANY, MANY YEARS OUT.

UM, AND THE, AND EVEN WHERE THE ROUTES ARE AND SO FORTH, I MEAN, FROM A STANDPOINT IS, UM, ONE THING I THINK IT COULD HELP IS MAYBE THAT MORE POWER IS FLOWING AROUND AUSTIN OPPOSED TO THROUGH AUSTIN.

SO I THINK THAT'S GONNA BE HELP AND, AND SHOULD HELP US FOR ANY TYPE OF CONGESTION, UM, INTERNAL TO AUSTIN.

UM, AND THEN I THINK IT DEFINITELY WILL BE AN OPPORTUNITY TO TAP IN.