* 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.
          [CALL MEETING TO ORDER ]
          [00:00:07]
          SPEAKING OF THE RESOURCE MANAGEMENT COMMISSION TO ORDER, 
          [PUBLIC COMMUNICATION: GENERAL]
UM, THE FIRST ITEM OF BUSINESS IS GUEST SPEAKERS. 
          I UNDERSTAND WE HAVE A SPEAKER. 
          MR. CRETIN, CAN YOU COME UP TO THE PODIUM PLEASE? THANK YOU. 
          FIRST, I'D LIKE TO THANK THE COMMISSION FOR GIVING ME THIS OPPORTUNITY TO SPEAK TODAY. 
          SO, GOOD EVENING. 
          MY NAME IS ALAN CRUDEN. 
          I'VE BEEN IN AUSTIN RESIDENT SINCE 1997, AND I HAVE 11 SOLAR PANELS ON MY ROOF. 
          SO OBVIOUSLY, I'M AN ADVOCATE FOR RESIDENTIAL SOLAR POWER, AND I'M HERE TO ASK THE COMMISSION TO TAKE TWO STEPS TO FORWARD THE CITY'S OBJECTIVES FOR RESIDENTIAL SOLAR POWER. 
          FIRST, I'D LIKE TO ASK THE COMMISSION, CREATE A SET OF BUSINESS CA EITHER CREATE OR CAUSE TO BE CREATED, A SET OF BUSINESS CASES WHICH WOULD OBJECTIVELY AND FACTUALLY SHOW THE CASE FOR RESIDENTIAL SOLAR. 
          THIS WOULD SOLVE TWO PROBLEMS. FIRST, IT WOULD GIVE ALL THE RESIDENTS OUT HERE WHO HAVE ANY DOUBTS AND SEE ALL CONFLICTING INFORMATION ON THE INTERNET, AN ANCHOR FOR A LOCAL ANSWER ABOUT WHETHER OR NOT RESIDENTIAL SOLAR HAS VALUE. 
          SECONDLY, IT WOULD PROVIDE AN ANCHOR THAT THIS COMMISSION COULD USE TO EVALUATE FUTURE CHANGES. 
          SECOND, I'D ASK THE COMMISSION STRONGLY ADVOCATE FOR NET METERING. 
          IT IS THE SWIFTEST EASIEST AND BEST FINANCIAL MOVE THAT COULD BE MADE TO, UH, MAKE THOSE BUSINESS CASES STRONG FOR THE CONSUMER. 
          NOW, AS I SAID, NET METERING HAS, HAS ITS CRITICS, AND I NOTICED LAST WEEK THAT MR. UH, TIM HARVEY MADE SOME COMMENTS AND SAID THAT, UH, THE COMPENSATION UNDER NET METERING WOULD NOT BE EQUITABLE. 
          AND HE'S TOTALLY RIGHT, BUT THE RE BUT HE FAILED TO SAY ONE IMPORTANT THING. 
          IT WOULD NOT BE EQUITABLE 'CAUSE IT'S BASED UPON THE BILLING SYSTEM, WHICH IS NOT EQUITABLE, RIGHT? IF THE BILLING SYSTEM WERE EQUITABLE, EVERYBODY WOULD PAY THE SAME AMOUNT PER KILOWATT HOUR REGARDLESS OF YOUR USAGE. 
          THAT'S NOT TRUE. 
          SO THEREFORE, UM, NET METERING CAN'T BE EQUITABLE. 
          UM, YOU CAN'T HAVE IT BOTH WAYS. 
          YOU CAN'T SAY WE WANT TO HAVE A BILLING SYSTEM THAT'S NOT EQUITABLE, AND THEN SAY, OH, BUT WE HAVE TO HAVE A COMPENSATION PROGRAM. 
          THAT IS, THAT JUST DOESN'T MAKE SENSE. 
          SECONDLY, HE SAID THAT, UH, NET METERING WOULD RAISE RATES BECAUSE THERE WILL BE FEWER KILOWATT HOURS, BILLABLE KILOWATT HOURS TO SPREAD EXPENSES OVER, AND THAT ALSO IS TRUE, BUT ONLY IN PART, AGAIN, THERE WERE SOME KEY FACTS THAT WERE EMITTED. 
          THE GROWTH OF BILLABLE KILOWATT HOURS CONTINUES TO RISE DRAMATICALLY IN THE AUSTIN AREA AS AREA BUILDS OUT AND MORE INDUSTRY COMES IN. 
          SECONDLY, ALLSTATE ENERGY ALREADY HAS PROGRAMS IN PLACE TO REDUCE BILLABLE KILOWATT HOURS. 
          THEY'RE CALLED ENERGY CONSERVATION. 
          SO HAVING SORT OF DEFUSED OR DEBUNKED, HOWEVER YOU WANT TO CHARACTERIZE IT, THOSE TWO REASONS I WOULD ASK THE COMMISSION TO ARGUE EVEN MORE FOR NET METERING AND MAKE IT A REALITY. 
          IT'S, UH, GOOD FOR THE CONSUMERS, IT'LL BE GOOD FOR THE CITY, AND HELP LEAD US MORE TOWARDS, UH, RENEWABLE ENERGY. 
          THANK YOU FOR YOUR TIME TODAY. 
          I'M AVAILABLE TO THE COMMISSION FOR FUTURE QUESTIONS OR TO WORK ON EITHER OF THESE TOPICS. 
          THANK YOU. 
          THANK YOU SO MUCH FOR COMING TODAY. 
          UM, BEFORE YOU LEAVE IS IS, UH, ARE THERE ANY QUESTIONS FROM COMMISSIONERS FOR OUR SPEAKER? YES, COMMISSIONER FARMER. 
          UM, I GUESS IN YOUR OPINION, IF WE SWITCH TO NET METERING, DO YOU THINK THAT MORE RESIDENTIAL SOLAR WILL GET BUILT OUT IN OUR CITY? OH, ABSOLUTELY. 
          ABSOLUTELY. 
          IF YOU, I WANNA BE CAREFUL HOW I SAY THIS. 
          IF YOU LOOK AT WHAT I CALL THE, UH, THE PRICE PER KILOWATT HOUR FOR AUSTIN ENERGY, BUT THE A TIER ONE, THEY SAY THE RATE IS ABOUT, WAS IT 5.24 OR 4.6? BUT IF YOU ADD ON THE ADDITIONAL COST, THAT ADDS ANOTHER 5.2 ONTO THE TOTAL. 
          SO FROM A CONSUMER STANDPOINT, WHAT I SEE IS I PAY ABOUT 9.80 CENTS A TIER ONE. 
          NOW, THE COMPENSATION I RECEIVE AS A PRODUCER IS 9.91 CENTS PER KILOWATT HOUR. 
          SO I'M BARELY THE TINIEST, UH, LEVEL ABOUT BREAKEVEN. 
          BUT AT EVERY OTHER TIER, I'M ESSENTIALLY SELLING AT A WHOLESALE PRICE OF 9.91. 
          AND AT TIER FOUR, BUYING BACK IT'S SIX OVER 16. 
          AND THAT JUST DOESN'T MAKE SENSE. 
          SO THAT'S WHY I SAID WE HAVE TO HAVE A SYSTEM THAT MIRRORS THE BILLING, THE BILLING, UH, SCHEME SO THAT WE CAN MAINTAIN THAT PARODY. 
          IF YOU TELL SOMEBODY WHO 
          [00:05:01]
ALREADY HAS EXISTING, UH, SOLAR PANELS THAT YOU'RE GOING TO NET METERING, THEY'RE GONNA WANT GROW BECAUSE THEY'RE GONNA SAY, WOW, I CAN START WHOPPING OFF THESE HIGH ENERGY BILLS. 
          I'M GETTING AT THE VERY TOP, AT THE UPPER TIERS, RATHER THAN JUST BEING TOLD, OH, WE'RE JUST GONNA PAY A TIER ONE RATE. 
          SO I REALLY DO BELIEVE IT WOULD MAKE A MAJOR DIFFERENCE. 
          THANK YOU. 
          THANK YOU. 
          THANK YOU. 
          OKAY. 
          UM, NEXT ITEM ON OUR 
          [1. Approve the minutes of the Special Called Resource Management Commission Meeting  on April 29, 2026.]
AGENDA IS THE APPROVAL OF THE MINUTES FROM THE APRIL 29TH TO 2026 MEETING. 
          DO I HAVE A MOTION? MOTION? UH, COMMISSIONER FARMER MOVES TO ADOPTION. 
          SECOND VICE CHAIR, ROBIN SECONDS. 
          UH, ANY DISCUSSION ON THE MINUTES? HEARING NONE. 
          ALL IN FAVOR OF ADOPTING THE MINUTES FROM THE APRIL 29TH MEETING, PLEASE RAISE YOUR HAND. 
          THE MINUTES ARE UNANIMOUSLY ADOPTED. 
          ALL RIGHT, THAT BRINGS US TO ITEM NUMBER 
          [2. Staff briefing on Clean Energy Portfolio Additions by Lisa Martin, Deputy General Manager  and Chief Operating Officer, Austin Energy]
TWO, WHICH IS STAFF BRIEFING ON CLEAN ENERGY PORTFOLIO ADDITIONS, UM, BY LISA MARTIN, DE, DEPUTY GENERAL MANAGER AND CHIEF OPERATING OFFICER. 
          THANK YOU, MS. MARTIN. 
          THANK YOU, CHAIR DAVIS. 
          ALRIGHT, GOOD EVENING, CHAIR DAVIS, VICE CHAIR ROBBINS AND COMMISSION MEMBERS. 
          I AM LISA MARTIN AUSTIN, ENERGY CHIEF OPERATING OFFICER, AND TONIGHT I'M HERE TO PRESENT AN OVERVIEW OF OUR RECENT WORK INVOLVING CLEAN ENERGY PORTFOLIO ADDITIONS AS PART OF OUR IMPLEMENTATION TO THE RESOURCE GENERATION AND CLIMATE PROTECTION PLAN TO 2035. 
          NEXT SLIDE. 
          NOW. 
          NEXT SLIDE PLEASE. 
          THANK YOU. 
          ALL RIGHT. 
          UM, TONIGHT I'M GONNA TALK ABOUT A LITTLE BIT ABOUT THE 2035 PLAN. 
          I'M GOING TO SHARE HOW WE'RE LEADING THE WAY IN CARBON FREE GENERATION, AND THEN I'LL SHARE WITH YOU THOSE, UM, CLEAN ENERGY PORTFOLIO ADDITIONS. 
          SO FIRST OF ALL, THIS IS THE PREMISE OF THE PLAN, WHICH IS THAT WE MUST MEET AUSTIN'S RISING ENERGY NEEDS WHILE ENABLING AN EQUITABLE CLEAN ENERGY TRANSITION THAT REFLECTS OUR COMMUNITY'S VALUES. 
          AND SO WE'VE BEEN WORKING ON A, UH, ON THIS PLAN IN A NUMBER OF DIFFERENT WAYS. 
          UM, AND TODAY I'M GONNA TALK TO YOU ABOUT THE CLEAN ENERGY ADDITIONS. 
          SO THE 2035 PLAN IS OUR ALL IN STRATEGY TO KEEP ENERGY RELIABLE, AFFORDABLE, AND CLEANER FOR EVERYONE IN OUR COMMUNITY. 
          AND WE KNOW THAT MEETING OUR GOALS AND MITIGATING RISKS MEANS USING EVERY TOOL AVAILABLE AS THE ENERGY WORLD RAPIDLY CHANGES. 
          YOU CAN SEE THERE ARE FOUR KEY PILLARS TO THE PLAN. 
          AND SO WHAT I'M GONNA TALK TO YOU ABOUT, THEY KIND OF HIT A NUMBER OF THESE AREAS. 
          SOME OF THEM ARE, UM, AGGREGATE, COMMU, UH, CUSTOMER ENERGY SOLUTIONS. 
          UH, SOME OF THEM A, A NUMBER OF THESE ITEMS ARE LOCAL SOLUTIONS. 
          AND THEN SOME OF THEM HELP TO, UH, YOU KNOW, ALL OF THEM IN MANY IN EVERY WAY, HELPS US TO ACHIEVE DECARBONIZATION. 
          ALL RIGHT, NEXT SLIDE PLEASE. 
          SO, JUST A COUPLE OF LEVEL SETTING ITEMS. SO WE'RE A LEADER ON THE PATH TO, UH, CARBON FREE. 
          UM, THE ENERGY THAT IS, OH, SORRY, EXCUSE ME. 
          THE ELECTRICITY THAT WAS GENERATED BY AUSTIN ENERGY IN THE LAST YEAR, UM, WAS 73% CARBON FREE. 
          AND THAT'S COMPARED TO, UH, 46% CARBON FREE GENERATION ACROSS ERCOT AND 42% ACROSS THE UNITED STATES. 
          UM, THAT 73% COMES FROM A MIX OF BIOMASS, WIND, SOLAR, AND NUCLEAR. 
          AND WHAT I'M GONNA TALK TO YOU TONIGHT ADDS TO THE CARBON FREE GENERATION. 
          I'M GONNA TALK ABOUT WIND AND SOLAR. 
          UM, I'M ALSO GONNA TALK ABOUT BATTERIES, WHICH IN AND OF THEMSELF ARE NOT CARBON FREE, BUT CERTAINLY DO, ARE COMPLIMENTARY TECHNOLOGY, UM, TO RENEWABLES. 
          AND SO THOSE, UM, ADD TO THE DIVERSITY MIX AS WELL. 
          NEXT SLIDE, PLEASE. 
          THIS SLIDE SPEAKS TO THE OVERARCHING GOAL THAT'S IN THE RESOURCE GENERATION AND CLIMATE PROTECTION PLAN. 
          THE GOAL IS TO GET TO 100% CARBON FREE GENERATION AS A PERCENTAGE OF LOAD. 
          AND HERE YOU CAN SEE THE HISTORY OF WHAT THAT PERCENTAGE IS OVER TIME AND WHAT WE HAVE, UM, BEEN, YOU CAN SEE THAT THERE'S A, UH, A POINT IN TIME IN, UH, SORRY. 
          OKAY. 
          SO ZOOMING INTO THE THE 2025 BAR, UM, YOU'LL SEE, YOU'LL RECALL FROM THE LAST SLIDE THAT SLIDE, THAT 73% CARBON FREE ELECTRICITY WAS GENERATED. 
          UM, AND THAT TRANSLATES TO 65% OF OUR CUSTOMER LOAD, AND IT WAS ALSO 65% LAST YEAR. 
          UM, AND SO MY TEAM AND I ARE VERY HAPPY TO SEE A STABILIZATION OF THIS, UH, NUMBER BECAUSE WE HAD BEEN SEEING A DROP IN RECENT YEARS. 
          UM, THAT'S DUE TO MULTIPLE FACTORS SUCH AS CURTAILMENTS AND CONGESTION AND ALSO LOAD GROWTH. 
          UM, SO THIS GOAL IS ALWAYS TOP OF MIND. 
          UM, WE MEASURE EVERYTHING WE DO IN TERMS OF HOW IT WILL IMPACT THIS GOAL. 
          AND SO THE NEXT SET OF SLIDES THAT I HAVE WILL HIGHLIGHT SOME OF THE PORTFOLIO ADDITIONS THAT ARE EXPECTED TO 
          [00:10:01]
INCREASE THIS PERCENTAGE. 
          ALL RIGHT, SO FIRST I'M GONNA TALK ABOUT, UM, SOLAR PROJECTS AND PROGRAMS. AND I WANT TO BE CLEAR THAT THIS IS NOT A COMPLETE LIST OF THE PROGRAMS THAT AUSTIN ENERGY OFFERS ON THE SOLAR FRONT. 
          UM, IF I LISTED THEM ALL, YOU WOULDN'T FIT THEM ALL ON THIS SLIDE. 
          DEFINITELY WOULDN'T HAVE ROOM FOR THE PHOTO. 
          UM, BUT TWO RECENT, UH, PROJECTS THAT WENT TO, UM, CITY COUNCIL LAST MONTH ARE THE EIGHT MEGAWATT LANDFILL SOLAR PROJECT AT THE COVERED LANDFILL AT FM EIGHT 12, AS WELL AS THE SOLAR ON CITY FACILITIES, UM, WHICH IS EXPECTED TO BRING IN APPROXIMATELY 25 MEGAWATTS. 
          UM, THIS IS IN ADDITION TO, OH, GO BACK TO THE SOLAR STANDARD OFFER. 
          UM, THE VALUE OF SOLAR AND THE INCENTIVES THAT WE HAVE FOR SOLAR THAT CONTINUE. 
          AND THEN OUR EXISTING PORTFOLIO, UM, IS NEARLY A THOUSAND MEGAWATTS OR A GIGAWATT OF, UM, SOLAR GENERATION OF ACROSS THE STATE OF TEXAS WITH SOME OF IT HERE, UM, CITED PRETTY LOCALLY. 
          NEXT SLIDE PLEASE. 
          UM, THIS SLIDE HIGHLIGHTS THE BATTERY PROJECTS AND PROGRAMS. AND FOR A WHILE, THE, THE BULLET AT THE BOTTOM, THE SHINES PROJECT, WHICH WAS I, I GOT THE OPPORTUNITY TO BE A PART OF, WAS REALLY OUR ONLY, UM, STRONG FORAY INTO, UM, BATTERIES. 
          IT GAVE US A LOT OF LEARNINGS, UM, AS WE OWNED AND OPERATED OUR OWN, UH, UTILITY SCALE BATTERY STORAGE. 
          WE HAD A DERM SYSTEM THAT CAME OUT OF THAT. 
          WE WERE, UM, STUDYING COMMERCIAL AND RESIDENTIAL SCALE BATTERIES AND WHATNOT. 
          GIVES A LOT OF LEARNINGS. 
          UM, BUT IT'S ONLY BEEN RECENTLY THAT WE FOUND PROJECTS, UM, THAT CAN FIT INTO OUR PORTFOLIO IN A VALUE ADD KIND OF WAY. 
          AND SO WE'VE BEEN, UM, EXECUTING ON THOSE IN A NUMBER OF, UM, VERY RAPIDLY. 
          SO LAST JULY, COUNCIL APPROVED A CONTRACT FOR A 100 MEGAWATT FOUR HOUR BATTERY AGREEMENT. 
          UM, AND THAT IS EXPECTED TO COME ONLINE, UH, BY THE END OF 2027. 
          LAST MONTH, UH, COUNSEL APPROVED A 40 MEGAWATT ONE AND A HALF HOUR BATTERY AGREEMENT, UM, THAT WE ACTUALLY, UM, SIGNED THAT CONTRACT YESTERDAY, UM, AND ANNOUNCED THAT SIGNATURE, THAT, THAT FULLY EXECUTED AGREEMENT YESTERDAY, AND ARE LOOKING FORWARD TO GETTING SOME OF THOSE UNITS ONLINE. 
          THAT'S DISTRIBUTED BATTERIES, UM, THROUGH BASE POWER. 
          AND SO BECAUSE OF THE DISTRIBUTED NATURE, AND AS Y'ALL KNOW, THE INSTALLATION, UM, IT'S NOT, DOESN'T TAKE AS LONG TO AS A, AS A UTILITY SCALE RESOURCE DOES. 
          WE ANTICIPATE SOME OF THOSE WILL BE ONLINE HERE SHORTLY. 
          UM, AND WE'LL CONTINUE TO BUILD OUT UP TO THE 40 MEGAWATTS OVER THE NEXT 18 MONTHS. 
          THIS WEEK, WE ARE BRINGING A THIRD BATTERY PROJECT TO CITY COUNCIL. 
          IT'S A 100 MEGAWATT TWO HOUR BATTERY AGREEMENT. 
          AND SO THAT WILL MAKE OUR QUOTE UTILITY SCALE PORTFOLIO UP TO 240 MEGAWATTS OF VARIOUS DURATIONS. 
          UM, THIS IS WORKING RIGHT ALONGSIDE, UM, MY AUSTIN ENERGY COLLEAGUES IN CUSTOMER ENERGY SOLUTIONS WHO HAVE BEEN HARD AT WORK ON THE BATTERY DEMAND RESPONSE PILOT AND INCENTIVES. 
          I THINK YOU MIGHT HAVE GOTTEN A PRESENTATION ABOUT THAT RECENTLY. 
          SO I, I WON'T, UH, BELABOR THAT POINT HERE. 
          BUT, UM, LOTS OF DIFFERENT OPPORTUNITIES, UH, TO SEE HOW BATTERIES, UM, SUPPORT OUR LOCAL, UH, ENERGY NEEDS. 
          NEXT SLIDE, PLEASE. 
          AND FINALLY, THIS SLIDE IS KIND OF A CATCHALL, UM, COVERING RENEWABLE AND OTHER PROJECTS AND TO ADVANCE OUR CLEAN ENERGY GOALS. 
          AND SO, UM, THIS WEEK WE'RE BRINGING TWO WIND CONTRACTS TO CITY COUNCIL. 
          UM, THEY'RE WITH THE SAME, UM, VENDOR OR SAME, UH, COUNTERPARTY, UM, BUT THEY'RE IN TWO DIFFERENT LOCATIONS. 
          THEY TOTAL, UH, JUST UNDER 300 MEGAWATTS. 
          AND, UM, WE ANTICIPATE THAT WE WOULD BE GETTING, UH, THEM TO BE FULLY OPERATIONAL LATER THIS YEAR. 
          UM, OH, UH, FOR, SORRY, FULLY OPERATIONAL THIS YEAR FOR OUR PORTFOLIO. 
          UM, AND THEN THAT'S IN ADDITION TO OUR EXISTING WIND PORTFOLIO, WHICH IS NEARLY 1800 MEGAWATTS. 
          UM, I ALWAYS LIKE EVERY OPPORTUNITY I CAN TO TALK ABOUT, UH, THE 9.9 MEGAWATT GEOTHERMAL PILOT IN WEST TEXAS. 
          WE'RE STILL WAITING FOR, UM, THAT ONE TO GET, UH, FULLY BUILT OUT, BUT WE ARE HOPEFUL THAT THAT WILL COME TO FRUITION AND REALLY GIVE US AN OPPORTUNITY TO STUDY THIS, UM, NEW INNOVATIVE TECHNOLOGY AND SEE IF IT CAN REALLY BE A GAME CHANGER HERE, UM, IN TEXAS. 
          AND THEN I WOULD BE REMISS IF I DIDN'T TAKE A MOMENT TO TALK EVER SO BRIEFLY ABOUT OUR TRANSMISSION IMPORT CAPACITY PROJECTS. 
          UM, THERE'S A LOT OF WORK THAT HAPPENS, UM, ALL THE TIME ON TRANSMISSION PROJECTS. 
          AND, UH, ONE OF THE MAIN BENEFITS OF THAT FROM THE PERSPECTIVE OF CLEAN ENERGY IS THAT BEING ABLE TO IMPORT MORE POWER INTO TEXAS HELPS US TO, UM, TAKE ADVANTAGE OF SOME OF, OF, YOU KNOW, THE MASSIVE AMOUNTS OF, OF RENEWABLES, UM, THAT ARE ACROSS, UH, THE STATE, UH, IN PLACES THAT AREN'T QUITE AS HIGHLY POPULATED, UM, AND DENSE AS AUSTIN. 
          UM, AND SO THIS, 
          [00:15:01]
UH, HELPS US TO KIND OF TAKE ADVANTAGE OF THAT WHEN, WHEN THOSE RENEWABLES ARE FULLY FULLY PRODUCING. 
          AND SO WITH THAT, THAT'S A QUICK SUMMARY OF, UM, WHAT WE'VE RECENTLY ADDED TO OUR, UM, OUR CLEAN ENERGY PORTFOLIO. 
          AND I'M HAPPY TO TAKE ANY QUESTIONS YOU MAY HAVE CHAIR. 
          THANK YOU FOR THE PRESENTATION. 
          UM, I WILL OPEN IT UP TO THE FLOOR. 
          UH, YES, VICE CHAIR ROBBINS HAS SOME QUESTIONS. 
          YOUR MIC IS, I HAVE A SHORT PRESENTATION WHICH ASKS QUESTIONS AS WELL AS, UM, MAKE STATEMENTS. 
          UM, AND IT'S, UH, DIRECTLY ABOUT THE BATTERY COSTS. 
          UH, I DID SEND THIS TO, UH, MS. MARTIN IN ADVANCE AS WELL AS YOU, UM, AND I WILL BE AS SHORT AS I CAN. 
          OKAY. 
          LET'S DO, UH, FLIP TO THAT. 
          UM, AND THEN I'LL HAVE SOME QUESTIONS AS WELL. 
          AND I THINK THE OTHER COMMISSIONERS MAY HAVE QUESTIONS TOO. 
          UH, MS. GOODWIN, COULD YOU, UH, IT LOOKS LIKE I WAS BRINGING IT UP. 
          GREAT. 
          UM, IS THIS, UH, LEGIBLE PEOPLE? OKAY. 
          UM, THANK YOU. 
          UM, THIS IS GOING TO BE RELATIVELY SHORT. 
          UH, UM, I HAVE ALWAYS HAD, I'VE HAD MIXED EMOTIONS ABOUT BATTERIES OVER THE YEARS. 
          'CAUSE WHILE I KNOW IT IS ESSENTIAL TO, YOU NEED STORAGE FOR INTERMITTENT RENEWABLES, BATTERIES ARE EXPENSIVE AND THE COSTS HAVE COME WAY DOWN AND THE COSTS ARE STILL EXPENSIVE. 
          AND SO WHAT I'VE DONE IS I'VE TRIED TO GUESS AT TO BENCHMARK, UH, WHAT AUSTIN ENERGY'S COSTS ARE COMPARED TO WHAT, UH, OTHER TYPES OF POWER ARE. 
          COULD YOU, UH, TURN THE SLIDE? NOW, THIS, UH, INTERESTING SNAKE CREATURE IS THE, UM, THE 2022 HOURLY COST AVERAGED OVER THE ENTIRE YEAR. 
          SO IT'S LIKE JANUARY 1ST HOUR ONE, JANUARY 3RD, HOUR ONE, ALL 365, UH, DAYS FOR THE FIRST HOUR, ALL 365 DAYS FOR THE ET CETERA. 
          UH, AND THIS IS THE AVERAGE PRICE, UH, OVER THE ENTIRE YEAR. 
          AND THE LOWEST IS 4 CENTS, AND THE HIGHEST IS 11 CENTS. 
          IF YOU HAVE A 7 CENT DELTA, UH, HOLD THAT THOUGHT. 
          NEXT SLIDE. 
          NOW, ANOTHER WAY TO GUESS AT, UH, WHAT A BATTERY WOULD COST IS TO USE A BENCHMARK STUDY. 
          THERE ARE SEVERAL AROUND, BUT THIS IS ONE OF THE MORE, UH, RESPECTED. 
          IT'S, UH, PUT OUT ANNUALLY BY LAZAR. 
          NEXT SLIDE. 
          AND IT HAS A SET OF ASSUMPTIONS ABOUT, UH, COSTS AND LOSSES AND OPERATING HOURS, ET CETERA. 
          AND NEXT SLIDE. 
          AND THEN THERE'S AUSTIN ENERGY'S BATTERIES. 
          THERE'S REALLY NOT A WHOLE LOT OF INFORMATION THAT'S PUBLIC ABOUT THEM, BUT I HAVE TRIED TO USE WHAT IS PUBLIC TO GUESS AT THEIR COST PER KILOWATT HOUR. 
          AND WHAT IT BASICALLY SAYS IS THAT THE BASE POWER, UH, CONTRACT IS 19 CENTS. 
          THE OCI CONTRACT, WHICH IS GOING TO BE VOTED ON THURSDAY, IS 11 CENTS. 
          AND JUPITER POWER, WHICH IS VOTED ON LAST YEAR, WAS ABOUT 10 CENTS. 
          COMPARE THAT TO THE 20 20 20 25 AVERAGE ERCOT COST OF, UH, WHOLESALE POWER AT 3.70 CENTS. 
          OR GO BACK TO THE, UH, FIRST SLIDE THAT I SHOWED YOU, THE 7 CENT DELTA. 
          UH, NO, NO, NO, NO. 
          I'M, I'M SORRY. 
          UH, IF YOU, 
          [00:20:02]
THAT ONE, THANK YOU. 
          YEAH. 
          UH, THAT'S THE 7 CENT DELTA BETWEEN, UH, BUYING LOW AND SELLING HIGH. 
          PLEASE GO BACK TO THE CHART, MS. GOODWIN. 
          OKAY. 
          AND THEN YOU'VE GOT, IF WE USE THE LAZAR FIGURES, IT WOULD COME OUT TO 8 CENTS. 
          SO LET'S USE THE 2022 AUSTIN ENERGY ARBITRAGE, BECAUSE 2022 WAS A REALLY BAD YEAR FOR POWER COST. 
          HORRIBLE. 
          THAT WAS THE YEAR THE UKRAINE WAR STARTED. 
          UH, THERE WAS A LOT OF COMPETITION FOR NATURAL GAS BECAUSE IT WAS BEING, UH, SENT OVERSEAS, UH, TO, UH, GET SCALPERS PRICES. 
          AND STILL, IT'S LIKE, UM, YOU'VE GOT, UH, BATTERIES AT 10 TO 19 CENTS, BUT YOU'RE ONLY SAVING 7 CENTS. 
          AND SO WITH ALL THESE BENCHMARKS, LAST SLIDE, UH, I'M ASKING THE QUESTION. 
          I'M MAKING THIS STATEMENT. 
          AUSTIN ENERGY NEEDS TO DESCRIBE THE BUSINESS MODEL THAT MAKES THESE STORAGE CONTRACTS, ECONOMIC, UH, AND I'M HOPING MS. MARTIN WILL DO THAT. 
          'CAUSE I'M CONFUSED. 
          I'VE BEEN DOING THIS A LONG TIME AND I NEED TO GET AN EXPLANATION 'CAUSE I'M NOT COMPLETELY FIGURING IT OUT. 
          AND THE LAST SLIDE, THIS IS KIND OF ON THE SAME SUBJECT, BUT IT IS KIND OF ON A DIFFERENT SUBJECT. 
          THESE ARE THE RESOURCE MANAGEMENT COMMISSION BYLAWS, AND IT SAYS RIGHT THERE IN THE BYLAWS THAT TWO COMMISSIONERS CAN PUT AN ITEM ON THE AGENDA. 
          THIS IS OUR AGENDA. 
          IT IS NOT AUSTIN ENERGY'S AGENDA TO TELL US WHAT WE CAN CONSIDER. 
          WE HAVE HISTORICALLY, UH, CONSIDERED, UH, RENEWABLE ENERGY, AND, UH, ALTHOUGH WE'VE NEVER, UH, CONSIDERED BATTERY COSTS BEFORE, IT IS IN OUR PURVIEW. 
          I HAVE TWO COMMISSIONERS THAT I TALKED TO BEFORE THE MEETING, COMMISSIONER FARMER AND COMMISSIONER SCHWARTZ, UH, UNLESS YOU'RE BACKING OUT OF THE DEAL, WHO TOLD ME THAT THEY WILL CO-SPONSOR. 
          SO I AM ASKING, I AM PUTTING ON RECORD ON THIS VIDEO THAT HENCEFORTH, UH, ANY LARGE RENEWABLE CONTRACT OR ANY BATTERY CONTRACT BE BROUGHT TO OUR COMMISSION FOR REVIEW AND COMMENT TO CITY COUNCIL. 
          IT'S RIGHT THERE IN OUR BYLAWS. 
          I AM NOT AWARE OF ANYTHING THAT SUPERSEDES THIS. 
          THANK YOU. 
          AND WITH THAT, I'M HOPING MS. UH, GO BACK TO MY QUESTION. 
          I'M ASKING YOU TO PLEASE EXPLAIN THE BUSINESS MODEL. 
          YOUR PRESENTATION IS NOT PART OF THIS, OF MS. MARTIN'S PRESENTATION THAT WE WERE NOT POSTED FOR YOUR SLIDES. 
          IT IS A QUESTION CAN ASK HER QUESTION. 
          YOU CAN ASK HER QUESTIONS ABOUT HER PRESENTATION. 
          OKAY. 
          PLEASE, UH, EXPLAIN THE BUSINESS MODEL FOR THE FIGURES THAT YOU'RE NOT SUPPOSED TO HAVE SEEN. 
          WELL, UM, VICE CHAIR ROBBINS, I, I, I GUESS YOU COULD JUST GO FORWARD TO THE NEXT SLIDE. 
          THANK YOU. 
          UM, OR MAYBE YOU CAN JUST CLOSE IT DOWN. 
          UM, I, I THINK WHAT I'M HEARING YOU ASK IS FOR MORE DETAILS ABOUT THE PARTICULAR CONTRACTS THAT WE HAVE PROPOSED TO CITY COUNCIL FOR ADOPTION. 
          AND THE DETAILS THAT I THINK YOU'RE ASKING ARE, UH, CONSIDERED COMPETITIVE MATTERS. 
          AND SO I DON'T HAVE THE ABILITY TO SHARE WITH YOU, UH, ADDITIONAL DETAILS THAT WOULD FALL INTO THAT CATEGORY. 
          I CAN TALK ABOUT BATTERY STORAGE IN GENERAL, AND I THINK, YOU KNOW, YOU HAVE A, A PRETTY SOLID UNDERSTANDING IS THAT YOU, THERE, THERE'S A NUMBER OF DIFFERENT VALUE CASES, BUT ONE OF THEM IS CHARGING THAT BATTERY WHEN PRICES ARE LOW AND DISCHARGING THAT BATTERY WHEN PRICES ARE HIGH. 
          AND, UM, TRYING TO HAVE THAT NET REVENUE OFFSET THE COST THAT, UM, YOU KNOW, IT IS FOR EITHER THE 
          [00:25:01]
CAPITAL INVESTMENT OR IN THIS CASE FOR A POWER PURCHASE AGREEMENT. 
          UM, WE MAKE PROPOSALS FOR A NUMBER OF DIFFERENT REASONS IN EACH ONE OF THEM. 
          IF WE'RE, IF WE'RE COMING FORWARD AFTER WE DO OUR ANALYSIS, IT'S BECAUSE THE OPERATING CHARACTERISTICS IN THE PRICING TERMS AND THE OTHER, UM, COMPONENTS THAT WE HAVE NEGOTIATED WITH THE COUNTERPARTY ULTIMATELY LEAD TO A PROPOSAL THAT IS A VALUE ADD FOR OUR CUSTOMERS AND FOR OUR PORTFOLIO, WHICH ULTIMATELY SITS TO SERVE OUR CUSTOMERS. 
          SO I, I CAN FEEL AND UNDERSTAND YOUR FRUSTRATION, BUT I'M NOT ABLE TO HELP YOU MUCH FURTHER THAN THAT. 
          MAYBE WE SHOULD HAVE AN EXECUTIVE SESSION. 
          SERIOUSLY, ARE THERE OTHER QUESTIONS ON MS. MARTIN'S PRESENTATION? COMMISSIONER FARMER? UM, I WAS JUST CURIOUS ABOUT THE, LIKE WHERE YOU'RE GOING FROM HERE TO 100% AND IF THERE'S LIKE A ROADMAP, IS THAT PUBLICLY AVAILABLE OR, UM, YOU KNOW, BECAUSE I THINK IT'S, THERE'S A LOT OF GOOD STUFF IN HERE, BUT THERE'S ALSO LIKE A BIG GAP THAT HAS TO BE DONE IN THREE AND A HALF YEARS, WHICH SEEMS, I KNOW YOU GUYS HAVE LIKE A BIG THING IN FRONT OF YOU,  YES. 
          ACCOMPLISH THAT. 
          SO I WAS CURIOUS LIKE WHAT THAT LOOKS LIKE, OR IF THAT'S ANOTHER PRESENTATION OR IF THAT'S ALREADY AVAILABLE THAT WE COULD FIND THAT. 
          SO IT'S A, IT'S AN EXCELLENT QUESTION. 
          THERE'S NOT A ROADMAP, LIKE AN EXACT, YOU KNOW, SIGN THIS MUCH UP HERE AND THAT MUCH UP THERE BECAUSE IT ALL DEPENDS ON WHAT THE OFFERS THAT WE GET THAT COME TO, YOU KNOW, TO FRUITION. 
          SO I WILL SAY RIGHT, OUR, FOR A WHILE, UM, FOR LONGER THAN, THAN I CARE TO ADMIT, WE HAVEN'T BEEN ABLE TO ADD ANY, UM, YOU KNOW, ADDITIONAL RENEWABLES TO OUR PORTFOLIO. 
          AND A LOT OF IT HAD TO DO WITH MARKET DYNAMICS. 
          AND, AND AGAIN, AS I SAID, AS WE DO THE ANALYSIS, UM, THEY WOULD TURN OUT NOT TO BE VALUE ADDS. 
          ONE OF OUR, UM, OBJECTIVES IS TO, UM, HELP MAKE, UH, HELP ONE, ONE OF THE ISSUES IS RIGHT NOW, UM, WE'RE HAVING, UM, THERE'S A LOT OF CONGESTION IN THE ERCOT MARKET, CERTAINLY DURING TIGHT DAYS AND CERTAINLY DURING TIGHT YEARS. 
          SO 20 22, 20 23 PARTICULARLY, WERE TIGHT AND WE'RE END UP PASSING A LOT OF THOSE COSTS DIRECTLY TO OUR CUSTOMERS. 
          AND IF WE CAN, UM, SOLVE THAT, THAT, UH, UH, LOCAL, UH, CONGESTION PROBLEM, UM, BY EITHER, UH, INCREASING OUR, UH, INTERNAL RESOURCES, SO THROUGH ALL OF THE, UM, PROJECTS THAT, THAT, UH, YOU KNOW, HAVE HAPPENED WITHIN CUSTOMER ENERGY SOLUTIONS PLUS SOME OF THESE LOCAL PROJECTS AS WELL, THEN, UM, WE WOULD BE ABLE TO INVEST MORE, UM, WITHOUT PUTTING ADDITIONAL STRAIN ON OUR, ON OUR CUSTOMERS BILLS, INVEST MORE IN ADDITIONAL RENEWABLES, AND IT WOULD MAKE THE EXISTING RENEWABLES A BETTER, UM, HEDGE FOR OUR, FOR OUR CUSTOMERS. 
          SO THAT'S ONE CONSIDERATION. 
          SO WE'RE WORKING TO, UM, INCREASE OUR TRANSMISSION IMPORT CAPACITY. 
          WE'RE WORKING TO ADD ADDITIONAL LOCAL RESOURCES ALL TO MAKE KIND OF A HEALTHIER PORTFOLIO SO THAT WE CAN CONTINUE TO INVEST IN RENEWABLES. 
          I KNOW THAT WAS A LONG ANSWER. 
          I HAVE ONE MORE THING TO SAY AND YOU HAVE A SECOND. 
          OKAY. 
          I WAS GONNA SAY, SO THE TEAM, UH, MY TEAM THAT DOES THE, UM, SOLICITATIONS FOR THESE RENEWABLES AND BATTERY PROJECTS, TYPICALLY, UH, ONCE A YEAR THEY'LL GO OUT AND THEY'LL CANVAS THE MARKET AND SAY, WHAT KINDS OF PROJECTS ARE OUT THERE. 
          UM, AND, UH, USUALLY WE GET A, A PRETTY HIGH, UM, NUMBER OF, OF RESPONSES. 
          UM, SO WE WILL CONTINUE TO DO THAT YEAR OVER YEAR. 
          UM, WE ACTUALLY DID, I THINK, FOUR DIFFERENT RFPS LAST YEAR. 
          BUT, UM, BUT WE'LL PLAN ON DOING AT LEAST ONE BIG ONE YEAR OVER YEAR TO SEE WHAT WE CAN CONTINUE TO ADD TO OUR PORTFOLIO. 
          'CAUSE WE KNOW THAT THERE'S A, A BIT OF A WAYS TO GO THE, THESE PROJECTS SHOULD ALL HELP OUR INCREASE OUR PERCENTAGE A FAIR AMOUNT, UM, BUT WE STILL HAVE A FAR WAYS TO GO. 
          AND OF COURSE IT'S THAT LAST, BUT THAT'S ALWAYS THE HARDEST. 
          SO NOT AN EXACT PLAN, BUT LOTS OF COMPONENTS TO IT. 
          IS, IS THERE A, LIKE WHAT HA IS IT, WHAT HAPPENS IF WE DON'T HIT A HUNDRED PERCENT? IS THAT JUST LIKE THE GAP GETS COVERED BY WRECKS OR IS THAT A, I I KNOW YOU GUYS ARE LIKE, HAVE TO DEAL WITH REALITY OF THAT'S RIGHT. 
          NOT TRYING TO INCREASE COST WITH CUSTOMERS. 
          SO IS THAT LIKE AN ASK FOR COUNCIL TO HAVE FOR MORE FUNDING TO COVER RECS? LIKE, IS IS LIKE THE CITY, YOU KNOW, I DON'T KNOW, LIKE WHAT KIND OF SORT OF MANDATE THERE IS OR TEETH THERE ARE TO ANY OF THIS? YEAH, SO THE, THE GOAL IS, YOU KNOW, ADOPTED BY CITY COUNCIL AND IT IS TO HIT 100% CARBON FREE IS A PERCENTAGE OF LOAD. 
          THE, THE LANGUAGE IN THE PLAN AS WRITTEN, AND I'M GOING OFF OF MEMORY HERE, BUT GENERALLY SAYS, UM, RECOGNIZING THAT TECHNOLOGY EVOLUTION IS IMPORTANT AS AN ENABLING FACTOR. 
          AND IF TECHNOLOGY DOESN'T INVOLVE, EVOLVE IN SUCH A WAY, I MEAN, QUICK SIDEBAR, RIGHT? SO IF THE GEOTHERMAL, YOU KNOW, KICKS OFF, THEN ALL OF A SUDDEN THERE MIGHT BE A NEW OPPORTUNITY TO HELP INCREASE THINGS PRETTY DRAMATICALLY. 
          UM, BUT IF, IF THAT DOESN'T COME TO FRUITION BY THE TIME THAT WE'VE HIT THAT PERIOD, WE, WE USE THE 
          [00:30:01]
PHRASE THAT WE'LL DO OUR BEST AND CLEAN UP THE REST. 
          AND WHAT THAT ULTIMATELY LOOKS LIKE HASN'T BEEN FULLY DETERMINED. 
          THE, THE OBVIOUS ONE THAT PEOPLE INITIALLY THINK TO IS REX. 
          IN THE PAST WE HAVE TRIED TO NOT, YOU KNOW, USE THOSE AS, AS THE, UM, YOU KNOW, ANSWER TO THE, THE SOLUTION. 
          BUT, UM, THE QUESTION WILL BE HOW CLOSE ARE WE AND WHAT IS ACCEPTABLE? UM, WHAT, UH, MAKES, YOU KNOW, ECONOMIC SENSE AND JUST SENSE FOR THE, FOR THE UTILITY AND THE COMMUNITY AS A WHOLE. 
          THANK YOU. 
          THANK YOU. 
          YES, SIR. 
          COMMISSIONER SCH, I'M SORRY. 
          THANK YOU. 
          CHAIR. 
          GO AHEAD. 
          YEAH, I JUST HAVE A SIMPLE QUESTION. 
          WHAT IS CURRENTLY AUSTIN'S GENERATION, NOT CARBON FREE GENERATION, BUT GENERATION PERIOD OF A PERCENTAGE LOAD? IS THAT LIKE HUNDRED 10% OR SOMETHING? SO I, I, I WISH I HAD AN EXACT NUMBER FOR YOU. 
          UM, FOR THE CALENDAR YEAR OR FOR THE YEAR. 
          UM, I REPORT ON OUT ON THAT EVERY QUARTER. 
          AND SO I WILL SAY MOST QUARTERS WE ACTUALLY GENERATE SHORT OF WHAT OUR, OUR LOAD IS, UM, WHAT I HAVE, UM, IF MEMORY SERVES, I JUST RECENTLY GAVE MY QUARTERLY OPERATIONS REPORT, UM, TO THE ELECTRIC UTILITY COMMISSION. 
          AND I THINK WE WERE JUST A SLIGHT BIT OVER, UM, FOR THE QUARTER. 
          IT REALLY JUST DEPENDS ON, UM, IF UNITS ARE OUTTA SERVICE FOR MAINTENANCE, UH, YOU KNOW, TO PREPARE FOR THE SUMMER OR WINTER SEASONS OR, UM, YOU KNOW, HOW, UM, WHAT THE OVERALL DEMAND IS ACROSS ERCOT BECAUSE, UM, WHEN DEMAND GOES UP, THEN THE TRANSMISSION LINES GET CONGESTED. 
          UM, SOMETIMES THERE'S ALSO, IF THE, IF THE DEMAND GOES DOWN, SOMETIMES THERE'S JUST OVERSUPPLY. 
          UM, AND, AND OUR UNITS GET CURTAILED BECAUSE OF NEGATIVE PRICING. 
          SO, UM, ANYWAY, THERE'S A LOT OF FACTORS INTO IT. 
          I DON'T HAVE THE EXACT, UM, NUMBER, BUT MOST OF THE TIME, UH, ON ANY GIVEN DAY WE COULD BE OVER GENERATING OR UNDER GENERATING. 
          BUT ON NET OVER THE YEAR, I THINK WE ARE A, UM, WE'RE UNDER GENERATING. 
          AND CERTAINLY AS WE LOOK OUT INTO THE FUTURE, UM, EVEN THOUGH WE'RE ADDING A NUMBER OF UTILITY SCALE RESOURCES, UM, WE DO WHAT OUR, WHAT OUR ANALYSIS SHOWS IS THAT, UM, FOR MOST, ALMOST ALL YEARS WE'RE UNDER GENERATING COMPARED TO, UM, WHAT OUR CUSTOMER DEMAND IS AS WE SEE THAT CONTINUE TO RISE. 
          IT'S A BUG IN HERE. 
          THANK YOU. 
          SO THERE'S NO SURGICAL, IT'S JUST A STRATEGY, FINANCIAL STRATEGY. 
          THAT'S RIGHT. 
          THAT'S RIGHT. 
          YO, BECAUSE WE'RE NOT IN THE, THE OLD ERCOT MARKET, WE DON'T HAVE TO EXACTLY BALANCE SUPPLY WITH DEMAND. 
          IT'S ALL ABOUT BALANCING THE FINANCES. 
          UM, AND, AND SO OWNING GENERATION OR CONTRACTING FOR GENERATION, UM, IS ULTIMATELY A FINANCIAL HEDGING STRATEGY. 
          BUT FOR THE SITUATIONS THAT WE SEE OURSELVES IN NOW, WHERE WE HAVE TO MAKE SURE WE HAVE SUFFICIENT, UM, GENERATION TO MEET OUR CUSTOMER LOAD, UM, FOR RELIABILITY PURPOSES AS WELL. 
          SORRY. 
          THANK YOU. 
          ANY, UH, COMMISSIONER LUKI? THANK YOU. 
          YES, I'M, I'M CURIOUS, UH, ABOUT THE BATTERY PROJECTS AND, UH, THEY SAY FOUR HOUR ONE AND A HALF HOUR, TWO HOUR, WHAT DOES THAT ACTUALLY MEAN? FOUR HOURS? YES. 
          SO A 100 MEGAWATT FOUR HOUR BATTERY CAN PRODUCE UP TO 100 MEGAWATTS OF POWER FOR FOUR HOURS IN DURATION BEFORE IT'S DEPLETED AND THE BATTERY IS DISCHARGED. 
          UM, BUT YOU CAN NEVER PRODUCE MORE THAN A HUNDRED MEGAWATTS. 
          THAT'S THE OUTPUT THAT COMES OUT FROM THE INVERTER. 
          UM, BUT YOU CAN PRODUCE LESS THAN THAT AND THEN EXTEND THE DURATION. 
          SO A 100 MEGAWATT FOUR HOUR BATTERY COULD ALSO BE THE EQUIVALENT OF A 50 MEGAWATT EIGHT HOUR BATTERY. 
          IT DOES TAKE THE SAME AMOUNT OF TIME TO CHARGE A BATTERY AS IT DOES TO DISCHARGE A BATTERY. 
          SO THAT'S ANOTHER RULE OF THUMB. 
          ASSUMING YOU'RE GONNA NEED ALL 100 MEGAWATTS AND YOU'RE GONNA RUN IT ALL OUT, IT WILL, IT WILL DEPLETE AFTER FOUR HOURS, AND THEN YOU'LL HAVE TO FIND ANOTHER FOUR HOUR PERIOD WITH, IN THIS CASE, LOW PRICES SO THAT YOU COULD RECHARGE IT. 
          UM, I'M CURIOUS, ARE YOU USING LIKE SOLAR POWER TO CHARGE THESE BATTERIES? THE, UM, THE, THESE PROJECTS, UM, THE TWO UTILITY SCALE ONES, THE FOUR HOUR AND THE TWO HOUR ONE ARE GONNA BE CONNECTED DIRECTLY TO THE GRID. 
          AND SO IT'LL DEPEND ON WHAT THE MIX IS ON THE AIR CUT MARKET AT THAT PARTICULAR POINT IN TIME, UM, AS TO WHAT THEY'RE CHARGING. 
          THAT'S WHY I SAY THEY'RE NOT EXACTLY CARBON FREE RESOURCES. 
          UM, IT DEPENDS ON WHAT THE, THE MIX IS. 
          UM, IN THE CASE OF THE DISTRIBUTED BATTERIES, SOME OF THOSE WILL BE INTERCONNECTED, UM, ON HOMES I WOULD IMAGINE THAT HAVE SOLAR. 
          AND SO IT IS POSSIBLE THAT THE ELECTRONS FROM THE SOLAR PANELS WILL BE FLOWING INTO THE BATTERY TO CHARGE THEM. 
          UM, BUT THERE'S A NUMBER OF DIFFERENT WAYS THEY COULD BE CHARGED. 
          OKAY, GREAT. 
          AND REGARDING THE GEOTHERMAL PROJECT, UM, DO YOU KNOW ANYTHING ABOUT, ABOUT THAT PROJECT OTHER 
          [00:35:01]
THAN IT'S GEOTHERMAL , BECAUSE THERE'S DIFFERENT WAYS OF DOING GEOTHERMAL AND, AND I WAS JUST CURIOUS WHICH WAY IT WAS GONNA GO. 
          IS IT CREATING ENERGY? SO THIS IS, UM, AN ENHANCED GEOTHERMAL SYSTEM. 
          SO IT'S A CLOSED LOOP, UH, SYSTEM THAT, UM, ESSENTIALLY USES THE TEMPERA TEMPERATURE DIFFERENTIAL OF UNDERGROUND TO, UH, YOU KNOW, HEAT AND COOL. 
          UM, AND THEN PRODUCE THE, UM, ESSENTIALLY I BELIEVE IT'S THE STEAM THAT WILL ULTIMATELY RUN THE, UM, GENERATOR. 
          UM, AND SO IT'S, IT USES, UM, NOW I'M, I'M TRYING TO CHANNEL, UH, MY VICE PRESIDENT IN THIS AREA, BUT I THINK IT'S USING SUPER CRITICAL CO2 AS THE, UM, MEDIUM THAT'S IN THE CLOSED LOOP SYSTEM. 
          UM, AND, UH, AND SO IT'S NOT, IT, IT DOES INVOLVE UNDERGROUND, BUT IT'S NOT THE TYPE OF GEOTHERMAL THAT IS, YOU KNOW, PUSHING SOMETHING UNDERGROUND AND THEN PULLING IT BACK UP LIKE YOU WOULD AT A GEYSER OR SOMETHING. 
          ALRIGHT, COOL. 
          THANK YOU. 
          THANK YOU. 
          UH, I HAD A ANOTHER QUESTION ABOUT THE, THE BATTERIES, THE DISTRIBUTED BATTERY OR REALLY ANY OF THEM. 
          UM, IS IT CONCEIVABLE THAT THOSE COULD BE CYCLED MORE THAN ONCE PER DAY? OR DOES IT BECAUSE OF THE WAY THE PRICING IS, YOU'RE GONNA DISCHARGE IT WHEN THE, WHEN THE PRICES ARE HIGH, BUT YOU NEED TO CHARGE IT WHEN THEY'RE LOW? DOES IT, LIKE, FROM A PRACTICAL STANDPOINT, IS IT, IS IT CONCEIVABLE? SO IT, IT IS CONCEIVABLE. 
          UM, AND IT DEPENDS ON THE, UM, ONE OF THE OPERATING CHARACTERISTICS THAT'S PART OF THE TERMS AND CONDITIONS OF A CONTRACT FOR A BATTERY IS HOW MANY TIMES YOU CAN CYCLE IT. 
          AND USUALLY IT'S HOW MANY TIMES YOU CAN CYCLE IT IN A YEAR. 
          AND, UM, AND THEN IT'S GENERALLY UP TO THE OPERATOR AS TO HOW OFTEN THAT'S HAPPENING. 
          UM, WHETHER IT'S ONCE PER DAY, WHETHER IT'S MULTIPLE TIMES PER DAY, YOU KNOW, IT, THE, BUT THE NUMBER, YOU KNOW, VARIES DEPENDING ON THE, THE WILLINGNESS OF THE OWNER OF THAT BATTERY. 
          UM, AND A LOT OF THAT HAS TO DO WITH THE FACT THAT AS YOU, UH, CYCLE BATTERIES CHARGE THEM AND DISCHARGE THEM, IF YOU KIND OF THINK ABOUT IT ON YOUR PHONE, IT'S, IT'S KIND OF SIMILAR. 
          UM, THEY WILL DEGRADE OVER TIME. 
          AND SO THERE'S A DEGRADATION FACTOR, THERE'S AN EFFICIENCY FACTOR, THERE'S A CYCLE LIMITS. 
          UM, ALL OF THESE FACTORS ARE PART OF THE COMPETITIVE MATTERS, BUT IN CONCEPT, YES, YOU COULD CYCLE CERTAIN BATTERIES MORE THAN ONCE A DAY. 
          THANK YOU. 
          AND SO ALL OF THESE AGREEMENTS THAT ARE ON THE SCREEN, THESE ARE, UH, AGREEMENTS WITH AN OWNER OF, OF THE, OF THE, OF THE BATTERY SYSTEM. 
          AND SO WE WOULD BE PAYING FOR A ACCESS TO THAT BATTERY. 
          LIKE A, LIKE A TOLLING ARRANGEMENT OR CORRECT. 
          EXACTLY. 
          AS OPPOSED TO, AND SO THEN AUSTIN ENERGY WOULD, WOULD NOT HAVE, UH, CERTAIN COSTS THAT HAVE TO DO WITH, I DON'T KNOW, MAINTENANCE OR, OR THINGS OF THAT NATURE. 
          IS THAT THE WAY IT KIND OF WORKS? SO ALL OF THESE ARE, UM, TOLLING BATTERY AGREEMENTS. 
          SO THERE'S A COUNTERPARTY WHO OWNS AND MAINTAINS THE RESOURCE MM-HMM . 
          UM, THEY MAKE THE RESOURCE AVAILABLE TO US TO CHARGE AND DISCHARGE AS WE WISH. 
          WE PERFORM THOSE SETTLEMENTS, YOU KNOW, UH, WITH THE ERCOT MARKET AND WE PAY THE, UM, OWNER OR THE COUNTERPARTY A TOLLING FEE FOR THE RIGHT TO USE THAT BATTERY FOR THE PERIOD OF TIME WITHIN THE OPERATING PARAMETERS THAT ARE SET FORTH IN THE CONTRACT. 
          GOTCHA. 
          THANK YOU. 
          THANK YOU. 
          UH, YES, COMMISSIONER COOK, I THANK YOU FOR THIS PRESENTATION. 
          UM, MY QUESTIONS ON THE 25 MEGAWATTS SOLAR OB CITIES FACILITIES. 
          UM, I KNOW WE'VE TALKED ABOUT THIS BEFORE, BUT JUST TO KIND OF JOG MY MEMORY, HOW MUCH, JUST TO, A COUPLE QUESTIONS ARE LIKE, ONE, HOW MANY, HOW MANY MEGAWATTS OF SOLAR DO WE ALREADY HAVE ON EXISTING CITY FACILITIES? AND THEN TWO, WHAT IS THE OR, OKAY, THREE QUESTIONS. 
          TWO, WHAT IS THE TIMELINE FOR THIS? AND THEN THREE, WHAT IS LIKE THE FINANCING MECHANISM? SO IT'S GONNA BE AE OWNED PANELS ON CITY OF AUSTIN BUILDINGS, AND THEN CITY OF AUSTIN PAYS AE AND IT GOES INTO THE GENERAL FUND. 
          LIKE WHAT, OR I'M GONNA LOOK TO SEE IF I CAN PHONE A FRIEND ABOUT SOLAR AND CITY FACILITIES. 
          IS THIS SOMETHING THAT YOU CAN HELP ME WITH? OKAY, UM, GOOD EVENING COMMISSION. 
          RICHARD GENESEE, VICE PRESIDENT OF CUSTOMER ENERGY SOLUTIONS AND, UH, COMMISSIONER, IT'S, UH, ROUGHLY A HUNDRED, UH, LOCATIONS, MUNICIPAL, UH, BUILDINGS THAT WILL HAVE SOLAR DISTRIBUTED ON THEM ACCORDING TO ONE OF TWO MODELS, EITHER, UH, FINANCED BY THE CITY DIRECTLY OR FINANCED THROUGH A SOLAR STANDARD OFFER, WHICH MEANS A THIRD PARTY IS BRINGING THE FINANCING, UH, TO, TO THE DEAL. 
          AND WHAT WAS THE OTHER PARTS 
          [00:40:01]
OF THE QUESTION? UM, WHERE, WHERE ARE WE RIGHT NOW, AND THEN WHERE IS THE TIMELINE FOR THIS 20 LOSS? YEAH, SO WHERE ARE WE RIGHT NOW IS THAT WE HAVE, UH, EXECUTED AND WE ARE IN THE MIDST OF OUR FIRST, UH, DEPLOYMENTS, WHICH WILL HAPPEN TO BE, UH, AUSTIN ENERGY FACILITIES AND HAVING SOLAR ON THEM. 
          UM, AND THE TIMELINE THAT WE'RE AGAINST IS WE'RE TRYING TO GET OUR, UH, FIRST ALL OF THESE WILL BE TREATED AS ONE PROJECT, WHICH BEHOOVES US BECAUSE THEN FROM A TAX PERSPECTIVE, WE'RE ABLE TO LEVERAGE THE TAX INCENTIVES ACROSS THE WHOLE PORTFOLIO. 
          UM, THE KEY TO THAT IS ONCE WE START, WE CAN'T STOP. 
          WE HAVE TO HAVE A PROJECT GOING AT ALL THE TIME. 
          UM, AND THE TIMELINE IS, I THINK WE HAVE TO HAVE OUR FIRST PROJECT BY JUNE, JUNE 4TH, JULY 4TH. 
          JULY 4TH. 
          SO WE HAVE TO HAVE OUR FIRST PROJECT, YOU KNOW, UH, TURNING DIRT, YOU KNOW, UM, WELL, I GUESS ROOF, BUT , BUT YOU KNOW WHAT I MEAN. 
          UH, THE PROJECT'S ACTUALLY, UH, LIVE AND, AND, UM, SOLAR PANELS INSTALLED BY JUNE, JULY 4TH, UM, IN ORDER TO KICK THE PROCESS OFF. 
          AND WE'RE WELL ON OUR WAY, WE'RE ON SCHEDULE TO DO THAT. 
          THAT SOUNDS GOOD. 
          I I LIKE THAT PROCESS. 
          UM, SO DO YOU HAVE AN IDEA OF HOW LONG IT'LL TAKE THEN TO GET TO 25 MEGAWATTS? IS THIS GONNA BE LIKE BY 2030? IS THIS GONNA BE LIKE 2028? UM, YOU KNOW, I THINK DEPENDING ON, I DON'T THINK THERE'S A, THERE'S A ABSOLUTE FIRM TIMELINE FOR ALL OF THEM. 
          I DO KNOW THAT, YOU KNOW, THE, THE END OF THE TIMELINE IS THE COMMERCIAL. 
          THE COMMERCIAL, UH, TAX CREDITS, UH, WILL END AND WE WANT TO MAKE SURE WE'RE INSTALLED BY THEN. 
          BUT EVEN LONGER THAN THAT, IF WE SAFE HARBOR, WE CAN GET A FOUR YEAR EXTENSION, UH, EVEN AGAINST THE COMMERCIAL, UH, THE END OF THE COMMERCIAL TAX CREDIT. 
          SO WE'RE TALKING ABOUT FOUR YEARS OUT THAT WE'D ESSENTIALLY HAVE TO DO THE PANELS, AT LEAST THE ONES THAT ARE PART OF THE SAFE HARBORING. 
          THANK YOU. 
          OKAY. 
          OKAY. 
          UM, ANY LAST, UH, BURNING QUESTIONS BEFORE WE MOVE ON? I WILL, VICE CHAIR ROBBINS BRING UP, UH, THIS DURING NEW BUSINESS. 
          GREAT. 
          OKAY. 
          UM, AND I, I DON'T KNOW IF, UH, COMMISSIONER JOINING VIRTUALLY, I JUST WANNA MAKE SURE, UH, YOU HAVE CHANCE TO CHIME IN IF YOU SO DESIRE COMMISSIONER KENARD, JANET, ALL, ALL GOOD FOR ME. 
          GREAT. 
          OKAY. 
          THANK YOU SO MUCH MS. MARTIN. 
          THANK YOU. 
          OKAY, WE'RE GONNA MOVE ON, 
          [3. Staff briefing on Green Building Residential Updates by Heidi Kasper Director, Energy  Efficiency Service, Austin Energy.  ]
UH, TO ITEM NUMBER THREE, WHICH IS STAFF BRIEFING ON GREEN BUILDING RESIDENTIAL UPDATES BY HEIDI CASPER. 
          GOOD EVENING COMMISSIONERS. 
          HEIDI CASPER. 
          I AM THE DIRECTOR OF GREEN BUILDING ELECTRIC VEHICLES EMERGING TECHNOLOGY HERE AT AUSTIN ENERGY. 
          THANKS FOR THE OPPORTUNITY TO SPEAK WITH YOU TONIGHT ABOUT THE PROPOSED UPDATES TO THE AUSTIN ENERGY GREEN BUILDING, SINGLE FAMILY AND MULTIFAMILY RATING SYSTEMS. NEXT SLIDE. 
          UM, SO WHAT THE RATINGS ARE, UH, JUST AS A QUICK REMINDER, UM, THE RATINGS ARE VOLUNTARY ABOVE CODE, UH, SUSTAINABILITY CERTIFICATION PRIMARILY FOR NEW CONSTRUCTION HERE IN AUSTIN. 
          ALTHOUGH WE DO, UH, WORK WITH MAJOR REHAB AS WELL. 
          THEY EVALUATE PROJECTS ACROSS RESOURCE EFFICIENCY AND ENVIRONMENTAL PERFORMANCE AND AWARD A ONE TO FIVE STAR RATING TO RECOGNIZE LEADERSHIP AND SUSTAINABLE BUILDING AND DESIGN. 
          AND THEY HELP GUIDE BUILDERS AND DESIGN TEAMS TOWARD HIGHER PERFORMANCE AND ENERGY USE, WATER EFFICIENCY MATERIALS, HEALTHY INDOOR ENVIRONMENTS, AND OVERALL ENVIRONMENTAL IMPACT. 
          THEY'RE NOT INCENTIVIZED DIRECTLY, UH, FINANCIALLY LIKE MANY OF OUR OTHER PROGRAMS, PRIMARILY OUR PARTICIPATION IS INCENTIVIZED AS A COMMUNITY BENEFIT THROUGH THINGS LIKE THE PUD ZONING DENSITY BONUS AND ALSO, UM, THE SMART HOUSING AFFORDABLE HOUSING INCENTIVE. 
          THEY PLAY A ROLE, UM, IN CODE EVOLUTION. 
          SO THE AUSTIN ENERGY GREEN BUILDINGS FUNCTION AS SORT OF AN INNOVATION TEST BED FOR FUTURE REGULATIONS. 
          UM, IT ALLOWS US TO IDENTIFY BUILDING PRACTICES THAT ARE FEASIBLE BEFORE THEY BECOME MANDATORY. 
          IT HELPS BUILD INDUSTRY FAMILIARITY AND CAPACITY AND SMOOTHS THE TRANSITION TO EACH NEW CODE CYCLE. 
          AND BY ENCOURAGING EARLY ADOPTION OF HIGHER PERFORMANCE STRATEGIES, WE HELP REDUCE FRICTION AND COST IMPACTS ONCE THOSE STRATEGIES DO EVENTUALLY MOVE INTO CODE. 
          SO WE HAVE KIND OF THIS CYCLE STARTING FROM INNOVATIONS, MOVING TO POINTS, MOVING TO MAYBE A REQUIREMENT, AND THEN CODE NEXT SLIDE. 
          ALL OF OUR RATINGS FOLLOW THE SAME BASIC STRUCTURE. 
          SO EVERY PROJECT MUST MEET A SET OF BASIC REQUIREMENTS AND MEETING THOSE BASIC REQUIREMENTS EARNS A PROJECT, A ONE STAR RATING. 
          UM, PROJECTS CAN THEN EARN 
          [00:45:01]
ADDITIONAL POINTS ACROSS MULTIPLE SUSTAINABILITY CATEGORIES, WHICH DETERMINE WHETHER THEY ACHIEVE A 2, 3, 4, OR FIVE STAR RATING. 
          AND THAT PROVIDES STRONG FOUNDATION IN THAT BASIC REQUIREMENT WHILE ALLOWING FLEXIBILITY AND INNOVATION, UM, TO DETERMINE THE BEST AND MOST COST EFFECTIVE APPROACH FOR EACH INDIVIDUAL PROJECT TO ACHIEVE THE HIGHER RATINGS. 
          UM, WITH OUR LAST RATING, UH, WE, THAT RATING UPDATE OCCURRED IN 2023. 
          NEXT SLIDE, PLEASE. 
          UM, THAT CYCLE PLACED A STRONG EMPHASIS ON HEALTH RELATED MEASURES SUCH AS INDOOR AIR QUALITY VENTILATION AND MATERIALS THAT SUPPORT OCCUPANT WELLBEING. 
          UM, WE'RE STILL ACTIVELY GATHERING DATA ON HOW WELL THOSE HEALTH MEASURES ARE BEING ADOPTED ACROSS DIFFERENT PROJECT TYPES, AND THOSE INSIGHTS WILL CONTINUE TO INFORM FUTURE UPDATES. 
          WE'RE ALSO, UM, IN LIGHT OF YOUR RESOLUTION THIS EVENING, MONITORING MARKET READINESS IN AREAS LIKE WATER HEATER EFFICIENCY AND, UM, AND SINGLE FAMILY PARTICULAR WITH THE NEW CONSTRUCTION REBATE WE'RE SEEING REALLY ENCOURAGING VOLUNTARY PROGRESS THERE. 
          ABOUT HALF OF THE PROJECTS FOR WHICH WE HAVE DATA ON THIS LATEST RATING VERSION, UM, ARE CHOOSING HEAT PUMP WATER HEATERS ABOUT, UH, HALF ARE ALSO CHOOSING, UM, THE HIGH EFFICIENCY GAS. 
          AND THEN, UM, THE REMAIN ABOUT ONE OR 2% ARE USING ELECTRIC RESISTANCE IN MULTIFAMILY. 
          IT'S A VERY, VERY DIFFERENT STORY, UM, WHERE ONLY A VERY SMALL FRACTION HAVE CHOSEN HEAT PUMP WATER HEATERS. 
          AND THAT WE BELIEVE IS DUE TO, UM, AFFORDABILITY CONSTRAINTS, NOT JUST FROM THE EQUIPMENT, BUT FROM THE SPACE AND DESIGN CONSTRAINTS OF WORKING THAT INTO A MULTIFAMILY BUILDING. 
          UH, CAN CHAIR DAVIS, CAN WE PLEASE, UH, HOLD QUESTIONS UNTIL AFTER THE PRESENTATION? I NEED TO CLARIFY SOMETHING IF IT'S OKAY. 
          UH, YOU SAID HALF WERE HEAT PUMP WATER HEATERS. 
          IS THAT HALF OF SINGLE FUEL UNITS OR HALF OF ALL PARTICIPANTS? HALF OF ALL OF THE PARTICIPANTS FOR WHICH I HAVE DATA, CAN YOU, UH, QUANTIFY PERCENT OF SINGLE FUEL HOMES THAT HAVE THEM? I DON'T HAVE THAT NUMBER FOR YOU. 
          OKAY. 
          SO, UM, IN THIS RATING CYCLE, UH, WE WERE FO FOCUSING ON, CAN I THINK THERE SHOULD BE ONE BEFORE THAT? YEP. 
          UM, SO IN THIS RATING CYCLE, WE ARE FOCUSING ON SEVERAL O OVERARCHING GOALS. 
          UM, ONE JUST ENSURING ALIGNMENT WITH CHANGING FEDERAL STANDARDS. 
          AUSTIN'S ADOPTED CODES, WE ADOPTED NEW CODES LAST YEAR AND OUR CLIMATE AND RESILIENCE GOALS, SIMPLIFYING LANGUAGE AND REORGANIZING MEASURES WHERE WE CAN TO IMPROVE USABILITY AND CLARITY FOR OUR BUILDERS AND PROJECT TEAMS. ADDING A STRONGER EMPHASIS ON RESILIENCE IN THE FACE OF INCREASING WILDFIRE RISK, EXTREME HEAT FLOODING HAZARDS AND GRID RELIABILITY CHALLENGES. 
          AND THEN JUST MAINTAINING OUR LEADERSHIP AND ENERGY PERFORMANCE HEALTHY BUILDINGS AND HELPING AUSTIN MEET ITS CLIMATE STRATEGY. 
          UM, NEXT SLIDE. 
          I'M JUST GOING TO TOUCH ON THE HIGH LEVEL TONIGHT. 
          UM, ALL OF THE DETAIL ARE, IS ONLINE, UM, BUT FOR SINGLE FAMILY PROJECTS, OUR KEY UPDATES INCLUDE A BRAND NEW RESILIENCY SECTION. 
          UM, WE'VE EXPANDED OPTIONS FOR SITE READINESS, BUILDING DURABILITY, AND CLIMATE RISK MITIGATION. 
          WE DO HAVE A NEW BASIC REQUIREMENT FOR SAFE ACCESS TO MECHANICAL EQUIPMENT AND SHARING ONGOING SAFE MAINTENANCE THROUGHOUT THE HOME'S LIFESPAN. 
          THIS IS ABOUT, UM, BEING ABLE TO MAINTAIN AN ACCESS EQUIPMENT SO THAT, UM, THAT MAINTENANCE HAPPENS, UM, REMOVAL OF SEVERAL MEASURES THAT HAVE SINCE BECOME PART OF CURRENT CODE. 
          AND THEN, UH, WE HAVE A BRAND NEW HEAT ISLAND REDUCTION MEASURE. 
          THIS IS A NEW MEASURE DESIGNED TO REDUCE THE EFFECTS OF HEAT ABSORBING SERVICES IN NEIGHBORHOODS SPECIFICALLY. 
          SO LOOK ADDRESSING KIND OF THE, UM, RIGHT OF WAY AND STREETS AND A NEIGHBORHOOD SCALE DEVELOPMENT, UM, AND A RESILIENCE, UH, MEASURE FOR ONSITE BATTERY STORAGE, UM, WHERE WE'RE ADDING POINTS FOR, UM, BATTERIES THAT QUALIFY FOR THAT NEW POWER PARTNER BATTERY PROGRAM THAT WE'RE DOING ON THE MULTIFAMILY SIDE. 
          UM, NEXT SLIDE. 
          THANK YOU. 
          UH, THESE UPDATES PARALLEL OUR SINGLE FAMILY CHANGES. 
          UM, SO WE HAVE, AGAIN, A NEW RESILIENCY SECTION. 
          UM, AND WE ARE EXPANDING TOOLS FOR PROPERTY OWNERS TO PREPARE FOR CLIMATE AND GRID IMPACTS, ADDRESSING THINGS, UM, FROM OPERATIONS TO BATTERY, UH, WATER AND ENERGY BACKUP SYSTEMS. WE HAVE A NEW BASIC REQUIREMENT HERE FOR A RESILIENCY ASSESSMENT, GUIDING DEVELOPMENT TEAMS TO PLAN FOR RESIDENT SAFETY AND LONG-TERM BUILDING FUNCTIONALITY. 
          IT DOESN'T ACTUALLY REQUIRE THEM TO DO ANYTHING OTHER THAN TO LOOK AT SOME RESOURCES THAT WE'RE GIVING THEM, FILL OUT A CHECKLIST, UM, TO MAKE SURE THAT THEY'RE ACKNOWLEDGING WHAT THEIR RISKS ARE ON THEIR SITE. 
          IS THEIR SITE PRONE TO FLOODING? HOW ARE MAKING THEM KIND OF THINK THROUGH THAT EARLY IN THE DESIGN PROCESS? 
          [00:50:02]
AGAIN, WE'VE REMOVED POINTS THAT HAVE BECOME MANDATORY REQUIREMENTS AND THEN, UM, WE'RE ADDING SOME NEW POINTS, UH, LIKE I SAID ON THAT RESILIENCY FRONT. 
          UH, A WILDFIRE MITIGATION POINT WHERE WE'RE ADDING, UH, POINTS FOR STRATEGIES THAT REDUCE WILDFIRE RISK AND A FREEZE PROTECTION, OH, SORRY,  FREEZE PROTECTION. 
          UM, OFFERING A POINT TO SUPPORT PREPAREDNESS FOR EXTREME COLD EVENTS, UM, IN TERMS OF OUR ENGAGEMENT PROCESS AND TIMELINE, THE PUBLIC COMMENT. 
          CAN WE GO TO THE NEXT SLIDE? THE PUBLIC COMMENT PERIOD OPENED ON MAY 1ST. 
          UH, HOPEFULLY YOU ALL RECEIVED AN INVITATION TO TAKE PART IN THAT. 
          UM, IT WILL REMAIN OPEN THROUGH JUNE 1ST. 
          DURING THIS PERIOD, WE'RE CONDUCTING OUTREACH, ANSWERING QUESTIONS AND ENCOURAGING BUILDERS, DESIGN PROFESSIONALS AND COMMUNITY MEMBERS TO REVIEW OUR PROPOSED CHANGES AND PROVIDE THE INPUT AFTER THE COMMENT PERIOD CLOSES. 
          WE'RE GOING TO HOST A PUBLIC UPDATE MEETING, UM, TOWARD THE END OF JUNE AFTER WE'VE REVIEWED THAT FEEDBACK TO LET FOLKS KNOW WHAT WE HEARD AND WHAT WE'RE INCORPORATING IN TERMS OF CHANGES. 
          OUR ROLLOUT TIMELINE HAS A GOAL OF RELEASING UPDATED GUIDEBOOKS FOR REVIEW BY JULY 1ST AND THEN HAVE ALL NEW REGISTERED PROJECTS USING THE RATING BY OCTOBER 1ST. 
          UM, NEXT SLIDE. 
          AND I'LL JUST CONCLUDE BY SAYING WE WELCOME AND ENCOURAGE, UH, YOUR PARTICIPATION DURING THIS PUBLIC COMMENT PERIOD, UM, DISPLAYING THIS WEEK AT AUSTIN LINKS SO THAT YOU AND THOSE THAT YOU REPRESENT, UH, CAN EASILY CONTRIBUTE FEEDBACK, SHARE THE OPPORTUNITY WITH OTHERS THAT MIGHT BE INTERESTED. 
          AND I THANK YOU FOR YOUR TIME AND YOUR ONGOING SUPPORT. 
          AND WITH THAT, I'M HAPPY TO TAKE QUESTIONS. 
          THANK YOU MS. CASPER. 
          APPRECIATE THE PRESENTATION. 
          UM, IT SOUNDS LIKE YOU HAD A CHANCE TO LOOK AT THE, THE DRAFT RECOMMENDATION. 
          I AM WONDERING IF YOU CAN SPEAK A LITTLE BIT TO WHAT ARE THE EITHER REQUIREMENTS OR, UM, ENCOURAGEMENT POINTS FOR, UH, HEAT PUMP WATER HEATERS IN BOTH SINGLE FAMILY AND MULTIFAMILY? SO THERE ARE NO REQUIREMENTS FOR HEAT PUMP WATER HEATERS IN EITHER READING. 
          HOWEVER, THERE ARE REQUIREMENTS TO ACHIEVE CERTAIN EFFICIENCY LEVELS. 
          MM-HMM . 
          IN THE BASIC REQUIREMENTS. 
          SO, UM, WITH THE CODE AND WITH THE, UH, ABOVE CODE EFFICIENCY REQUIREMENTS THAT IS DRIVING SOME INCENTIVE AND, UM, PUSH TOWARD USING THAT TECHNOLOGY. 
          'CAUSE IT'S ONE OF THE EASIER WAYS TO GET THERE, UM, PARTICULARLY IN A SINGLE FAMILY CONTEXT, NOT SO MUCH IN THE MULTIFAMILY CONTEXT. 
          AND THEN, UM, BOTH RATINGS AWARD, UH, POINTS, UH, FOR CHOOSING THAT TECHNOLOGY. 
          UM, WITHIN MULTIFAMILY WE EVEN ALLOW DOUBLE DIPPING. 
          SO IF THEY PERFORM AN ENERGY MODEL, WE'LL GIVE THEM CREDIT FOR, UH, THE PERFORMANCE OF THAT ENERGY MODEL, WHICH THE HEAT PUMP WATERS ARE CONTRIBUTING TO. 
          AND BECAUSE WE'RE TRYING TO INCENTIVIZE THAT TECHNOLOGY, WE ALSO JUST GIVE THEM POINTS FOR USING THE TECHNOLOGY. 
          COOL, THANK YOU. 
          AND THEN YOU MENTIONED THAT IN MULTI-FAMILY, UM, IT'S A, A LOT, UH, I I THINK YOU SAID 1% OF SINGLE FAMILIES USING ELECTRIC RESISTANCE AND THEN IT'S A DIFFERENT STORY. 
          MULTIFAMILY, WHAT DO YOU HAVE THE DATA FOR? I DON'T HAVE THE SPECIFIC DATA. 
          I WOULD SAY THAT IT'S LIKELY TO BE HIGHER, JUST 'CAUSE IT'S PROBABLY MORE OF AN EVEN SPLIT BETWEEN THAT AND GAS. 
          WE DO SEE A FAIR AMOUNT OF GAS, PARTICULARLY CENTRALIZED GAS SYSTEMS IN MULTIFAMILY. 
          UM, BUT WE, I, WE DO SEE A FAIR AMOUNT OF, UH, WHAT I WOULD CALL LOW BOY ELECTRIC RESISTANCE, UH, WATER HEATERS AND SMALL MULTIFAMILY UNITS, BUT I DON'T HAVE THE EXACT PERCENTAGE FOR IT. 
          OKAY. 
          THANKS. 
          AND THEN MY LAST QUESTION IS, UM, SO I THINK AUSTIN ENERGY OFFERS LIKE AN $800 REBATE FOR HEAT PUMP WATER HEATER. 
          IS OUR DEVELOPERS OF THESE PROJECTS ELIGIBLE FOR THAT AS WELL AS THE POINTS? THEY ARE. 
          AND WE HAD, ONE OF THE THINGS THAT WE TRY AND DO THROUGH THE RATING PROCESS IS MAKE SURE THAT THE DEVELOPERS ARE AWARE OF THAT  REBATE AND INCENTIVE AND CONNECT 'EM TO THAT PROGRAM. 
          UM, OKAY. 
          THANK YOU. 
          YEAH. 
          UM, OTHER QUESTIONS? VICE CHAIR, ROBBINS, UM, COUPLE THINGS REGARDING THE RESOLUTION THAT WE MIGHT TAKE UP A LITTLE LATER ON. 
          HEAT PUMP WATER HEATERS. 
          THIS WAS REALLY MEANT TO BE A CHRISTMAS TREE KIND OF THING OF WHERE OTHER COMMISSIONERS WHO HAD, UH, SUGGESTIONS ABOUT, UH, UH, IMPROVEMENTS IN THE OVERALL PROGRAM COULD ADD THEIR OWN 
          [00:55:01]
ORNAMENTS. 
          I'M SORRY, ORNAMENTS. 
          YES, EXACTLY. 
          AND, UM, UM, REGARDING, UH, WHAT WAS SAID, I THINK THAT, UH, SEVERAL OF US MET VIRTUALLY WITH, UH, UM, HEIDI AND, UH, WITH MS. CASPER AND MS. MR. GENESEE. 
          AND, UM, IT WAS, UH, I BELIEVE IT WAS BROUGHT UP THAT THEY'RE TRYING TO INCREASE THE REBATE TO A THOUSAND DOLLARS PER UNIT. 
          NOW, I'M, I'M NOT A BUILDER, BUT I'M THINKING, OKAY, IF MANY OF THESE UNITS USED TO BE AROUND $1,200, IF YOU BOUGHT THEM INDIVIDUALLY AND IF YOU BOUGHT THEM IN MASS FOR AN APARTMENT, I'M SURE THERE'S GONNA BE A LARGE DISCOUNT. 
          AND THERE ARE GOING TO, THERE ARE ALREADY GONNA BE WIRED FOR ALL ELECTRIC IN MOST CASES. 
          NOT ALL, BUT MANY. 
          AND IT WOULD SEEM THAT THAT WOULD BE ENOUGH INCENTIVE TO GET MORE THAN 1% PARTICIPATION. 
          SO WHAT AM I MISSING? SO THE, THE COST GOES BEYOND THE EQUIPMENT COST FOR MULTIFAMILY BECAUSE, UM, WHAT YOU'RE COMPARING IT TO AS A LOW BOY, UM, WATER HEATER THAT CAN BE HUNG IN A CLOSET AND NOT ACTUALLY TAKE UP ANY, UM, SQUARE FOOTAGE. 
          THE HEAT PUMP WATER HEATERS CAN'T BE DONE THAT WAY. 
          THEY ACTUALLY REQUIRE A FAIR AMOUNT OF SPACE. 
          YOU NEED ENOUGH AIR CIRCULATION, AND THEN YOU NEED SOME PLACE TO DUMP THE COLD AIR. 
          UM, SO THE TECHNOLOGY REQUIRES A DIFFERENT LEVEL OF DESIGN AND SQUARE FOOTAGE, WHICH ADDS COST TO THE CONSTRUCTION OF THE BUILDING. 
          AND YEAH, AND AS YOU BROUGHT UP IN OUR MEETING, UM, THERE ARE NEW KINDS OF HOT WATER HEAT PUMPS OUT THAT ARE SPLIT SYSTEMS THAT ARE LIKE AIR CONDITIONERS THAT, UH, DUMP THE, THE TEMPERATURE OUT INTO THE, UH, INTO THE OUTSIDE AIR. 
          UH, AND ARE, DO THOSE CARRY A HUGE PREMIUM? I'M NOT, I HONESTLY, I'M NOT UP TO DATE ON ALL OF THE PRICES OF THOSE SYSTEMS VERSUS, UH, THE OTHER HEAT PUMP WATER HEATERS. 
          I KNOW THAT THERE HASN'T BEEN, UM, A LOT OF THEM INSTALLED IN OUR, IN OUR MARKET AREA. 
          AND SO, UM, THERE'S NOT A LOT OF FAMILIARITY YET WITH THE, THAT TECHNOLOGY. 
          WE'RE NOT SEEING PEOPLE OPT FOR THAT TYPE OF EQUIPMENT JUST YET. 
          MR. FARMER? I CAN, I CAN. 
          SO THE LIKE, SANKO UNITS ARE THE SPLIT UNITS WITH THE CO2 REFRIGERANT AND THEY ARE A PREMIUM AND THEY'RE ALSO JUST BECAUSE THERE AREN'T MANY IN THIS MARKET, THERE'S A SORT OF EARLY ADOPTER FEAR ISSUE THERE, BUT I THINK ALSO LIKE MAYBE PAIRED WITH SOME OF THE REFRIGERANT MOVEMENTS THAT MIGHT HELP WITH THE NEEDLE ON THOSE BECOMING MORE PREVALENT. 
          I WAS ONLINE A COUPLE DAYS AGO AFTER, UH, HEIDI MADE HER COMMENT AND AO SMITH HAS, UH, UH, THE, THE LARGE MANUFACTURER OF WATER HEATERS HAS A SPLIT SYSTEM OUT NOW. 
          UM, BUT I, I DON'T HAVE A PRICE COMMISSIONER LUKI. 
          THANK YOU. 
          I'M CURIOUS ABOUT YOUR, UM, HEAT ISLAND REDUCTION TACTICS. 
          WHAT ARE THEY GOING TO BE? SO, UM, IN THE NEW MEASURE THAT I TALKED ABOUT, IT IS AROUND, UH, STREET, STREET TREES IN THE RIGHT OF WAY, UM, SHADING THAT RIGHT OF WAY SPACE AND REFLECT IT USING LIGHT COLORED, ESSENTIALLY CONCRETE PAVEMENT INSTEAD OF ASPHALT ON THE STREETS. 
          SO, UM, I'M AWARE THAT THE CITY COUNCIL, AT LEAST A YEAR AGO WAS TALKING ABOUT STREAMLINING THE PROCESS FOR PERMISSION TO PLANT TREES IN THOSE AREAS, MOSTLY BECAUSE OF UTILITIES UNDERGROUND AND MAKING SURE THAT THOSE AREN'T INTERFERED WITH. 
          AND I WAS WONDERING IF THAT'S PART OF THIS PROGRAM OR IS THIS A SEPARATE THING? UM, IT'S SEPARATE, BUT THIS IS, WITH OUR PROGRAM, THE NEIGHBORHOODS THAT WE'RE DEALING WITH ARE PRIMARILY BRAND NEW DEVELOPMENTS. 
          UM, AND THESE GOING INTO THESE PUDS WHERE THERE'S AN OPPORTUNITY TO, UH, PROACTIVELY PLAN FOR THAT UPFRONT. 
          NOT 
          [01:00:01]
TO SAY THAT WE ALWAYS GET THEM COMING TO US THAT EARLY, BUT THEORETICALLY THERE'S MORE OF AN OPPORTUNITY THERE. 
          RIGHT. 
          SO EXISTING NEIGHBORHOODS ARE NOT ON THIS LIST AT ALL? NO. 
          UM, WE, BY THE NATURE OF THE PROGRAM, WE TYPICALLY DON'T SEE, UH, THAT KIND OF PARTICIPANT WITH US. 
          IF WE'RE SEEING SOMETHING IN AN EXISTING NEIGHBORHOOD, IT'S USUALLY, UM, ONE HOME AT A TIME VERSUS TAKING ON A NEIGHBORHOOD. 
          GREAT. 
          I WAS JUST LOOKING FOR SOME HELP BECAUSE I STARTED THIS PROGRAM CALLED SHADE THE STREETS IN WINDSOR PARK, WHERE WE ARE LOCATING THESE THINGS AND WHERE TO PLANT TREES AND IN SOME CASES IT'S WATERSHED PROTECTION OWNED LAND, AND OTHER PLACES IT'S INTERSECTIONS WHICH ARE, UH, TRAFFIC OR TRANSPORTATION, UM, PROPERTIES. 
          AND, AND, UH, WE'RE JUST RUNNING INTO THE, THE ISSUE OF, WELL, ONCE YOU PLANT THESE THINGS, HOW DO YOU KEEP 'EM ALIVE? AND SO MY QUESTION TO YOU IS, HOW DO YOU KEEP THE TREES ALIVE ONCE YOU PLANT THEM AND YOU'VE GOT THEM OUT IN THESE INTERSECTIONS, YOU HAVE TO LITERALLY DRIVE THE WATER UP TO IT WITH A TRUCK AND PUT THE WATER ON IT. 
          I'M ASSUMING THAT'S YOUR PLAN? UM, WELL, IT DEPENDS ON HOW IT'S DESIGNED, RIGHT? SO LIKE HERE AT MILLER, WE HAVE LOTS OF STREET TREES AND THOSE HAVE UNDERGROUND PURPLE PIPE IRRIGATION SYSTEMS. SO IT DEPENDS ON THE NEIGHBORHOOD. 
          UM, IF YOU HAVE IT OUT IN THE MIDDLE OF THE STREET, UM, AND YOU HAVEN'T PRE PUTT THE PLUMBING IN THERE, BUT IF YOU'RE BUILDING A BRAND NEW NEIGHBORHOOD, UM, YOU CAN LAY THAT PLUMBING AND PLAN FOR THE IRRIGATION SYSTEMS TO BE THERE. 
          BRILLIANT. 
          OKAY. 
          THANK YOU. 
          MM-HMM . 
          COMMISSIONER FARMER. 
          OH, UM, JUST, UH, COULD YOU TALK A LITTLE BIT ABOUT LIKE, THE FEEDBACK LOOP WITH THE CODE CYCLES AND LIKE YOU GUYS ARE KIND OF TEST DRIVING STUFF AND I KNOW LIKE PAT'S VERY INVOLVED IN THE CODES COMING ABOUT, BUT I HADN'T REALLY THOUGHT ABOUT LIKE Y'ALL AS KIND OF TESTING STUFF TO THEN GET FED INTO UPCOMING CODE CYCLES. 
          RIGHT. 
          UM, SO IT'S A BIT OF BOTH. 
          UM, SO OUR TEAM, UH, SERVES AS SUBJECT MATTER EXPERT ON THE ENERGY CODE. 
          UM, I HAVE STAFF THAT ARE CURRENTLY SITTING ON, UH, COMMISSIONS AT THE NATIONAL LEVEL WITH THE ICC, UM, INTERNATIONAL CODE COMMISSION, UM, BOARDS AND THERE TO HELP DEVELOP AND GUIDE THE 2027 PUBLISHED CODE. 
          UM, SO WE GET AN EYE TO WHAT'S GOING TO COME DOWN THE ROAD WITH THOSE NEW PUBLISHED CODES. 
          SO LOOKING AT THAT, UPDATING OUR RATINGS TO MAKE SURE OUR BUILDERS ARE PREPPED FOR THAT HERE. 
          AND THEN ALSO IT'S, UH, TRYING TO BE PROACTIVE ABOUT IT TOO, RIGHT? SO GETTING THOSE GREAT IDEAS, UM, FROM THE BUILDERS AND DEVELOPERS. 
          WE'RE WORKING WITH THE ARCHITECTS, LOOKING AT WHAT NEW TECHNOLOGIES ARE THERE. 
          UM, USUALLY STARTING WITH AN INNOVATION MEASURE. 
          UM, THEN AS WE UNDERSTAND IT AND WE UNDERSTAND, UM, WHAT WORKS ABOUT IT AND HOW TO DOCUMENT IT, MOVING THAT INTO OUR POINT STRUCTURE, IF IT'S WORKING REALLY WELL THERE AND WE'VE GOT GREAT TRACTION, UM, AND IT MAKES SENSE, WE HAVE TO BE A LITTLE JUDICIOUS, UM, FROM AN AFFORDABILITY AND JUST ALSO AN ADMINISTRATIVE BURDEN PERSPECTIVE, CHOOSING CERTAIN THINGS TO MOVE INTO BASIC REQUIREMENTS AND THEN MOVING 'EM OUT INTO CODE. 
          UM, SO THAT'S KIND OF AN IDEAL, UH, WAY THAT WE SEE THAT CYCLE WORKING. 
          UM, IT DOESN'T ALWAYS WORK PERFECTLY AND LIKE I SAID THIS, WITH THIS RATING UPDATE, WE'RE GOING BACK THROUGH AND SCRUBBING EVERYTHING THAT GOT, UH, MADE CODE IN THE LAST CODE CYCLE. 
          YEAH, IT WAS COOL SEEING HOW MANY, HOW MUCH OF THAT IS FALLING OUT BECAUSE IT'S NOW MANDATED THROUGH THE CODE. 
          YEAH. 
          COMMISSIONER SCHWARTZ, THANKS. 
          SO I THINK YOU ALREADY COVERED IT, BUT MAYBE IT WENT OVER MY HEAD. 
          THE SYSTEM, IT'S NOT A RULE-BASED SYSTEM, IT'S A POINT-BASED SYSTEM. 
          WAS THAT WHAT YOU SAID EARLIER? SO IS, BECAUSE THE QUESTION IS, IS THERE ANYTHING IN THERE THAT IS REQUIRED OR IS IT ALL SORT OF, YOU KIND OF ADD UP THE POINTS TO HIT A CERTAIN NUMBER? UM, THERE ARE REQUIREMENTS. 
          SO, UM, WE HAVE A SECTION AT THE TOP OF THE RATING CALLED BASIC REQUIREMENTS. 
          AND EVERY PROJECT HAS TO MEET ALL OF THOSE IN ORDER TO GET A RATING AT ALL. 
          UM, AND ONCE THEY MEET ALL OF THOSE BASIC REQUIREMENTS, AND WE, WE TRY AND KEEP THAT TO A REASONABLE NUMBER JUST FROM A, AN ADMINISTRATIVE BURDEN PERSPECTIVE. 
          UM, 10 TO 13 I THINK IS KIND OF WHERE WE, WE TEND TO LAND, UM, OF BASIC REQUIREMENTS AND THOSE ADDRESS ALL OF THE DIFFERENT SUSTAINABILITY CATEGORIES. 
          SO, UM, YOU'RE GONNA DO SOMETHING IN ENERGY EFFICIENCY, YOU'RE GONNA DO SOMETHING IN WATER, YOU'RE GONNA DO SOMETHING IN MATERIALS, DO SOMETHING, UM, IN INDOOR AIR QUALITY, AND WE KIND OF PICK WHAT WE'RE THINKING IS THE SORT OF NEXT STEP ABOVE CODE. 
          UM, SO IT'S STILL AN ABOVE CODE BUILDING, IT'S STILL MEETING ALL OF THESE DIFFERENT SUSTAINABILITY CRITERIA AND ALL OF THE PROJECTS HAVE TO MEET THOSE FROM THERE. 
          IF THEY WANT A HIGHER RATING, THEN THEY GO TO THE MENU OF POINTS, THEY CAN GO UP. 
          OKAY. 
          AND, AND WHAT IS THE, THIS IS GONNA, UH, I EXCUSE MY IGNORANCE ABOUT THE MM-HMM . 
          PROGRAM, BUT WHY WOULD A DEVELOPER WANT TO, 
          [01:05:01]
I GUESS, FROM, NOT FROM AN ENVIRONMENTAL PERSPECTIVE, BUT FROM A SELFISH PERSPECTIVE, HIT THE HIGHER STAR NUMBERS, OR I GUESS TO PARTICIPATE IN THE PROGRAM AT ALL? UM, SO SOME OF THE PUDS REQUIRE, UH, HIGHER LEVELS. 
          SO, UM, MOST OF THE PUDS REQUIRE TWO STAR RATING. 
          UM, EVERY NOW AND THEN WE SEE ONE THAT REQUIRES THREE. 
          SO THERE'S SOME OF THAT IN THE, IN THOSE MID TIERS, THE FOUR AND FIVE STAR, IT'S UH, DRIVEN PRIMARILY FOR ENVIRONMENTAL REASONS. 
          WE EITHER HAVE AN ORGANIZATION AS DEVELOPMENT THAT HAS, UH, SUSTAINABILITY GOALS, AND THEN IT'S SOMETIMES ALSO DRIVEN AS A, UM, MARKET DIFFERENTIATOR DEPENDING ON HOW HARD IT IS TO SELL A HOUSE. 
          UM, AND THE MARKET CONDITIONS. 
          THAT KIND OF EBBS AND FLOWS A BIT. 
          BUT WE HAVE SEEN BUILDERS THAT ARE LIKE, I WANT TO BE THE FIVESTAR GREEN BUILDER. 
          UM, AND THAT WAY I'M HITTING THAT PIECE OF THE MARKET. 
          SO LIKE A HIGHER END HOME OR SOMETHING? YEAH. 
          YEAH. 
          OKAY. 
          AND DO YOU HAVE A, SORRY, GO AHEAD. 
          YEAH, I MEAN, IT'S ALSO LIKE THE FOUNDATION COMMUNITIES. 
          YEAH. 
          OKAY. 
          RIGHT. 
          THEY'RE AIMING FOR THOSE HIGHER RATINGS TOO, BECAUSE THEY'RE MISSION DRIVEN. 
          SO, SO THAT'S AFFORDABLE HOUSING, BUT IT'S, AND HABITAT TENDS TO STRIVE FOR IT AS WELL. 
          SO SOME OF THOSE AFFORDABLE HOUSING ORGANIZATIONS HAVE THIS SORT OF EMBEDDED INTO THEIR OWN MISSION AND CULTURE, AND THAT'S WHY THEY GO FOR IT. 
          OKAY. 
          THANK YOU. 
          AND DO YOU HAVE A SENSE OF LIKE, WHAT, ROUGHLY WHAT FRACTION OF NEW HOMES IN AUSTIN HAD BEEN PART OF THIS PROGRAM OVER THE LAST FEW YEARS? UM, IT'S, IT VARIES. 
          UH, WE ESTIMATE IT TO BE ABOUT 20 TO 30% OF THE MARKET. 
          COOL. 
          THANK YOU. 
          YEP. 
          UH, VICE CHAIR ROBBINS, UM, ON THE CHANCE THAT SOME PEOPLE HERE DON'T KNOW THIS, UM, UH, THE GREEN BUILDING MOVEMENT, IF YOU WILL, STARTED HERE. 
          UH, AUSTIN HAD ONE OF THE FIRST PROGRAMS IN THE WESTERN HEMISPHERE, AND IT WASN'T JUST A RATING SYSTEM, UH, FOR THE FIRST FEW YEARS THAT THE PROGRAM EXISTED, THEY, UH, THE STAFF CREATED, UH, NATIONAL, UM, CONFERENCES. 
          AND THESE WERE NOT THE KIND WHERE YOU SPEND $2,000 ON, I MEAN, THEY CHARGED SOMETHING RIDICULOUSLY LOW, LIKE 25 TO $50, AND THEY HAD, UH, PEOPLE, LITERALLY NATIONAL EXPERTS FLY IN. 
          UM, AND HERE WE ARE TODAY. 
          AWESOME. 
          COME A LONG WAY TOO. 
          SINCE THEN, I THINK THIS IS REALLY GREAT. 
          I LOVE SEEING THE, ALL OF THE THINGS THAT ARE ENCOURAGING, UM, ENERGY EFFICIENCY AND SUSTAINABILITY AND, AND ENVIRONMENTAL PRACTICES. 
          UM, AS MANY ON THIS COMMISSION MAY KNOW, BUT SOME MAY NOT KNOW. 
          UM, VICE CHAIR ROBBINS WAS ALSO INSTRUMENTAL IN TRYING TO GET A LOT OF THE INDOOR, UH, AIR QUALITY, UM, OR MATERIALS, UH, STUFF IN, INTO THIS. 
          SO, UM, GO TEAM . 
          THAT'S IT. 
          OKAY. 
          UM, OKAY. 
          UNLESS THERE ARE ANY OTHER QUESTIONS FROM MS. CASPER, THANK YOU VERY MUCH FOR THE PRESENTATION. 
          UM, SO WE DO HAVE AN ACTION ITEM OR POSTED FOR DISCUSSION AND OR ACTION, UH, ON THE GREEN BUILDING PROGRAM. 
          UM, SO, UH, VICE CHAIR ROBBINS IS GOING TO, I GUESS, PASS AROUND SOME COPIES, KILLING SOME TREES FOR US. 
          . 
          THANKS. 
          I'VE GOT MINE RIGHT HERE ALREADY, ACTUALLY, BUT , UH, MARTIN, HE'S GOT MINE. 
          OKAY. 
          OKAY. 
          SO, UM, WE'RE GONNA ACTUALLY MOVE TO 
          [5. Discussion and recommendation on the Austin Energy Green Building Program revisions. ]
ITEM NUMBER FIVE ON THE AGENDA NEXT, AND THEN WE'LL COME BACK TO FOUR. 
          SO THIS IS THE, THE RECOMMENDATION, UNLESS WE WANNA TABLE THAT. 
          WELL, WHAT'S YOUR, WELL, UM, AGAIN, THIS WAS MEANT TO BE A CHRISTMAS TREE WHERE VARIOUS PEOPLE, UH, IF THEY HAD COMMENTS OR RECOMMENDATIONS THEY COULD ADD TO THEM. 
          UM, WHEN I WAS A SPROUT BACK IN THE 1970S LEARNING ABOUT THIS STUFF, I, UM, WAS TOLD ABOUT THE EVILS OF ALL ELECTRIC HOMES, 
          [01:10:02]
AND IT, UH, IT WAS DRILLED INTO ME, UH, THAT, UH, THEY WASTED ENERGY BECAUSE BACK THEN ALL ELECTRICITY WAS CREATED WITH, UH, OLD STYLE COMBUSTION PLANTS THAT WERE 33% EFFICIENT, AND THEN YOU LOSE 7% OVER THE LINES. 
          UH, AND SO BY THE TIME, UH, YOU, YOU GOT IT TO YOUR HOUSE, YOU DIDN'T HAVE VERY MUCH OF THE ENERGY THAT WAS THERE TO BEGIN WITH. 
          UH, AND SO HERE WE ARE TODAY, UH, HEAT PUMPS THAT HEAT HOMES ARE REQUIRED HERE IN CODE, BUT WE STILL HAVE RESISTANCE, WATER HEATING, UH, IN MANY HOMES, AND WE STILL HAVE RESISTANCE COOKING. 
          AND SO THIS WAS JUST, UH, AN ATTEMPT. 
          THIS RESOLUTION IS AN ATTEMPT TO TRY AND GET, UH, MORE HEAT PUMP WATER HEATERS INSTALLED SO THAT, UH, IT'S NOT AS EXPENSIVE TO LIVE, UH, IN BUILDINGS. 
          UH, IT LOWERS, UM, ELECTRIC BILLS. 
          AND, UM, THERE ARE SEVERAL, WHEREAS CLAUSES IN THIS, BUT, UM, IT JUST, THE MAIN THING IS THEN BE IT RESOLVED THAT THE RESOURCE MANAGEMENT COMMISSION ADVISES THE AUSTIN CITY COUNCIL TO REQUIRE HEAT PUMP WATER HEATERS TO SINGLE FUEL, SINGLE FAMILY AND MULTIFAMILY UNITS AS A REQUIREMENT FOR PARTICIPATION IN THE UPDATED 2026 VERSION OF THE, OF AUSTIN ENERGY GREEN BUILDING. 
          UM, AND I, THIS IS, UH, MY SUGGESTION AS, UH, TO WHAT ONE THING THAT WE COULD SUGGEST TO, UH, MAKE THINGS BETTER. 
          UM, THERE ARE PROBABLY, UM, OTHERS, I'M NOT SURE HOW, UH, HOW FAR YOU'VE THOUGHT ABOUT THEM. 
          I KNOW THAT COMMISSIONER FARMER HAS, UH, SAID, WELL, HE, HE WAS, UH, HOPING TO SEE MORE, UM, EMBODIED CARBON, UH, POINTS, AND I BELIEVE THAT'S BEING PROPOSED IN THE DRAFT. 
          UM, SO I'M JUST RAMBLING. 
          THIS IS MY, MY SUGGESTION. 
          UM, I THINK SOME OF THE ISSUES ABOUT, UM, PERCENTAGES OF PARTICIPATION, UH, WITH WHETHER, UM, MULTIFAMILY UNITS, UH, WOULD, UH, WOULD USE THEM, UM, UM, IT, IT, IT, IT BLURS THE ISSUE A LITTLE. 
          UM, ON THE OTHER HAND, YOU'VE GOT, UM, WE HAVE A GROWING NUMBER OF, UM, SINGLE FAMILY UNITS IN TEXAS AND IN AUSTIN BACK, UM, IN THE 1970S, I BELIEVE MAYBE ABOUT 8% OF TEXAS HOMES WERE HEATED WITH ALL ELECTRIC. 
          AND TODAY IT'S MORE LIKE 65%. 
          IT'S SOME, IT'S HUGE. 
          UH, AND IT'S BECAUSE, UH, BUILDERS THINK IT'S CHEAPER TO BUILD THAT WAY. 
          AND THIS IS PARTICULARLY TRUE IN APARTMENTS. 
          UM, JUST TO SELF-CORRECT MY STATEMENT, I BELIEVE IN AUSTIN, UH, PROBABLY ABOUT LITTLE LESS THAN HALF OUR NATURAL GAS WITH THE REST BEING ALL ELECTRIC. 
          BUT STILL, I'M JUST TRYING TO POINT OUT THAT THIS IS WHERE SOCIETY'S 
          [01:15:01]
BEEN HEADED FOR FIVE DECADES. 
          AND IF THIS IS WHERE WE'RE GONNA END UP, THEN WE NEED TO USE THE MOST EFFICIENT, UH, EQUIPMENT POSSIBLE. 
          THANK YOU. 
          VICE CHAIR. 
          UM, IN, IN ORDER TO OPEN DISCUSSION ON THIS, I WILL ASK FOR A MOTION, LIKE A MOTION TO ADOPT. 
          I SO MOVE. 
          OKAY. 
          IN A SECOND. 
          COMMISSIONER FARMER SECONDS. 
          OKAY, SO NOW WE'RE OPEN DISCUSSION ON THIS ITEM. 
          GO AHEAD, COMMISSIONER FARMER. 
          SO, SO I, I AGREE WITH THE, UH, MOTION BEHIND THIS. 
          YOU KNOW, I THINK THESE ARE GREAT TECHNOLOGIES AND WE WANNA PUSH THEM FORWARD. 
          UM, I ALSO THINK LIKE HEIDI AND HER TEAM HAVE SET UP LIKE A REALLY GREAT FEEDBACK SYSTEM THAT'S OPEN. 
          SO THIS IS LIKE A THING THAT HAS AN OPEN PUBLIC COMMENT, AND SO THAT FEELS LIKE A BETTER VENUE FOR MAKING COMMENT AS OPPOSED TO LIKE US PUTTING FORTH THE RESOLUTION AND TRYING TO GET COUNSEL TO THEN SORT OF FORCE IT. 
          UM, AND I THINK THERE'S OTHER WAYS TO GO ABOUT IT TOO. 
          LIKE IT'S, I THINK THERE IS LIKE A COST ISSUE HERE IN THE MULTIFAMILY WORLD, AND THERE'S A REASON THAT IT'S NOT GETTING A TON OF ADOPTION. 
          AND SO IF IT'S SOMETHING WE WANNA PUSH FORWARD, THEN MAYBE GETTING COUNCIL TO PUT MORE MONEY TOWARDS THE INCENTIVE PROGRAM, YOU KNOW, WHICH IS ALREADY GETTING A BUMP, UM, YOU KNOW, RATHER THAN KIND OF MANDATING IT THROUGH. 
          SO ONE OF THE THINGS IS LIKE THE SMART HOUSING PROGRAM. 
          SO BASICALLY LIKE ANY AFFORDABLE HOUSING IN AUSTIN GOES THROUGH A SMART HOUSING PROGRAM, WHICH REQUIRES A ONE STAR REQUIRE, UH, LEVEL OF A A GB, RIGHT? SO THAT'S WHERE IT'S LIKE THERE'S SOME, UH, DELICATENESS OR UNDERSTANDING THAT NEEDS TO KNOW TO LIKE, WHAT THESE REQUIREMENTS ARE GOING TO PUT ON IN TERMS OF LIKE A COST BURDEN ON DEVELOPERS, BECAUSE IT'S ESSENTIALLY A MANDATE FOR A PROJECT GOING THROUGH THAT. 
          UM, AND I THINK THERE'S ALREADY POINTS IN IT FOR GOING TO HEAT PUMPS AS SORT OF LIKE BONUS POINTS. 
          SO I GUESS THAT'S KIND OF MY, WHERE I SIT ON THIS IS THAT IT FEELS LIKE MAYBE WE COULD LIKE BRIGADE THE COMMENT SYSTEM AND GET A BUNCH OF OUR, YOU KNOW, THE MULTI-FAMILY DEVELOPER. 
          LIKE IF YOU GOT FOUNDATION COMMUNITIES AND A BUNCH OF THE AFFORDABLE HOUSING DEVELOPERS IN TOWN TO ALL LIKE, GO IN AND PUT COMMENTS. 
          AND I THINK THAT WOULD HELP SWAY THINGS A LOT MORE THAN LIKE US TRYING TO PUT A RESOLUTION AND TO KIND OF LIKE FORCE TO THE CASE. 
          OKAY. 
          I SEE. 
          UH, COMMISSIONER KENNER'S HAND IS UP. 
          GO AHEAD, PLEASE. 
          THANKS VERY MUCH. 
          UM, I HOPE YOU CAN ALL HEAR ME CLEARLY ENOUGH. 
          YEAH. 
          UM, ONE QUE SORT OF A QUESTION FOR EVERYONE OR ANYONE WHO'S UH, ABLE TO SORT OF WEIGH IN IS I SEE A POTENTIAL RISK HERE. 
          I MIGHT BE WAY OFF, AND I'M JUST GONNA LOOK AT MY, I'VE GOT TWO SCREENS, SO JUST TO MAKE SURE THAT I'M READING THIS OUT. 
          UM, HOUSE BILL 17 WAS INTRODUCED IN, IN 2021, KIND OF IN RESPONSE TO THE, THERE WAS A BIT SORT OF A POLITICAL MOMENT AROUND, UM, PLACES THAT WERE ADOPTING ELECTRIC ONLY BUILDINGS AND, AND UNQUOTE BANNING GAS. 
          DOESN'T THAT APPLY IN THIS RESOLUTION, IN THIS CONTEXT? NO. 
          THE, THE REASON I'M, I'M UNCLEAR IS BECAUSE I, UH, OTHER THINGS HAVE BEEN SAID ABOUT THIS. 
          THIS IS ONLY, UH, MEANT IF THE BUILDING IS ALREADY BEING BUILT AS A SINGLE FUEL, UH, BUILDING OR A SINGLE FUEL HOME. 
          IT, IT DOES NOT, UM, DOES NOT, UH, MANDATE THAT THIS GO INTO, UH, HOMES THAT COULD BE GAS HEATED. 
          I SEE. 
          THAT HELPS. 
          OKAY. 
          YEAH. 
          THAT, THAT WAS THE BIT I WAS PROBABLY MISSING IN TERMS OF THE, I'M SURPRISED THAT WE'RE ALLOWED TO DO SINGLE FUEL HOMES. 
          I GUESS THAT'S MY, MY IGNORANCE THAT, UM, YEAH. 
          OKAY. 
          WELL, THANK YOU. 
          I THINK THERE, THERE'S NOTHING FORCING PEOPLE TO NOT USE GAS IN THAT LANGUAGE. 
          IT'S JUST THAT THE CITY CAN'T MANDATE ALL ELECTRIC. 
          SO SINGLE FIELD HOME WOULD BE A CHOICE BY THE DEVELOPER OR THE HOMEOWNER. 
          UM, I, I JUST WANNA ECHO SOME OF, UH, THE SENTIMENTS FROM COMMISSIONER FARMER AROUND, UM, YOU KNOW, DEFINITELY SUPPORTING, UH, INITIATIVES TO TRY TO, TO PUSH DEVELOPMENT TO BE, UM, MORE ENVIRONMENTALLY FRIENDLY, UM, YOU KNOW, MORE AFFORDABLE, MORE GREEN SUSTAINABLE, UM, ALL OF THAT I SUPPORT. 
          BUT, UM, I ALSO FEEL LIKE, UM, THE, 
          [01:20:02]
YOU KNOW, THERE'S SOME OTHER, THERE COULD BE SOME OTHER UN UNINTENDED CONSEQUENCES OF, UM, PUSHING A REQUIREMENT OF THIS NATURE HAVING TO DO WITH AFFORDABILITY. 
          YOU NEED A LARGER FOOTPRINT FOR THESE KIND OF THINGS. 
          THAT'S GONNA MEAN, UM, THE, YOU KNOW, THE INITIAL INCREASED COST OF IT IS GONNA BE PASSED ON TO THE, YOU KNOW, THE, THE, THE BUYER OR THE RESIDENT. 
          AND I DON'T KNOW, I THINK, UM, YOU KNOW, TO COMMISSIONER FARMER'S POINT, I THINK THERE'S OTHER AVENUES TO TRY AND, UM, YOU KNOW, TO TRY AND PUSH ON THESE. 
          SO THAT'S, THAT'S KIND OF WHERE I'M, WHERE I'M THINKING. 
          ARE THERE COMMENTS OR QUESTIONS, COMMISSIONERS? UM, ONE THING I WILL ALSO JUST, UM, ADD IS AS VICE CHAIR ROBBINS MENTIONED, UM, YOU KNOW, THE INTENT BEHIND THIS, AND I DO, UM, APPRECIATE YOUR PULLING THIS TOGETHER AND OFFERING IT TO THE COMMISSION AS A, YOU KNOW, AS A STARTING POINT FOR FOLKS TO, YOU KNOW, ADD THINGS THAT ARE, YOU KNOW, MAYBE IMPORTANT TO THEM ON IT. 
          SO I WOULD, I WOULD SUGGEST THAT THIS DISCUSSION TIME COULD BE A TIME TO TALK ABOUT OTHER THINGS IN THE RATINGS UPDATE PROPOSAL THAT MIGHT BE, UM, OF INTEREST TO COMMISSIONERS IF YOU WANT. 
          OKAY. 
          UM, I, WE ARE POSTED FOR ACTION. 
          UM, UM, I'M GONNA RECOMMEND POSTPONEMENT. 
          OKAY. 
          WE'LL TABLE THIS ITEM, UH, FOR ACTION AT A, AT A LATER FUTURE DATE, POSSIBLE ACTION AT A LATER. 
          OKAY. 
          THANK YOU. 
          VICE CHAIR. 
          UM, OKAY. 
          THAT WILL 
          [4. Staff briefing on Commercial Solar Standard Offer by Tim Harvey Director, Customer  Renewable Solutions, Austin Energy. ]
BRING US BACK TO ITEM NUMBER FOUR, STAFF BRIEFING ON COMMERCIAL SOLAR STANDARD OFFER. 
          IS MR. HARVEY HERE? NO. 
          HI. 
          YOU'RE, YOU'RE NOT MR. HARVEY ? NO, MR. HARVEY IS HERE. 
          OH, HELLO COMMISSIONERS. 
          I'M VALERIE PAXTON. 
          I WORK UNDER TIM HARVEY. 
          I'M THE PROGRAM MANAGER FOR CUSTOMER RENEWABLE SOLUTIONS. 
          DID WE JUST LOSE SOME COMMISSIONERS? SHOULD I WAIT? SHOULD WE GO? UM, DON'T TAKE THREE, FOUR. 
          UH, IF WE DON'T, WE NEED, WE NEED SIX, SO WE NO, WE'RE GOOD. 
          YEAH, BECAUSE WE'RE NOT TAKING ACTION. 
          OKAY. 
          SO WE'RE GOOD. 
          ALRIGHT, LET'S GO. 
          OKAY. 
          SOUNDS GOOD. 
          YES. 
          I'M HERE TO BRIEF YOU ALL ON OUR COMMERCIAL SOLAR STANDARD OFFER PROGRAM. 
          UH, LET'S GO AHEAD FOR THE NEXT SLIDE. 
          I THINK YOU'RE OKAY. 
          TO MY APOLOGIES, MS. PAXTON. 
          PLEASE CONTINUE. 
          OKAY. 
          UM, I'M, YEAH, I'M HERE THIS EVENING TO BRIEF YOU ON OUR COMMERCIAL SOLAR STANDARD OFFER PROGRAM. 
          UH, FOR THE NEXT SLIDE, I'LL, UH, I THINK MANY OF YOU ARE ALREADY AWARE OF OUR COMMERCIAL SOLAR STANDARD OFFER PROGRAM. 
          I'LL DO A BRIEF OVERVIEW. 
          I'LL BE DISCUSSING THE UPCOMING RATE ADJUSTMENT, WHICH I THINK YOU ALL ALSO MAY BE AWARE OF. 
          SO I MAY NOT BE GIVING YOU A LOT OF NEW INFORMATION THERE. 
          UH, I'M GOING TO DISCUSS OUR GUARANTEED MINIMUM PRICE INCENTIVE, WHICH IS NEW. 
          UM, AND OF COURSE, TAKE YOUR QUESTIONS IF YOU HAVE ANY. 
          NEXT SLIDE. 
          BEFORE I TALK ABOUT THE COMMERCIAL SOLAR STANDARD OFFER PROGRAM, I'D LIKE TO TALK ABOUT HOW 99% OF SOLAR SYSTEMS IN AUSTIN ENERGY ARE CITED. 
          MOST OF THEM ARE CUSTOMER CITED, THEY'RE ALSO CUSTOMER OWNED. 
          AND THEN THROUGH THE VALUE OF SOLAR CREDIT THAT YOU HEARD ABOUT EARLIER TODAY, UM, THE ACCOUNT HOLDER, UH, RECEIVES CREDIT FOR THEIR GENERATION ON THEIR BILL. 
          UH, THAT WORKS FOR A LOT OF CUSTOMERS. 
          HOWEVER, IT DOESN'T WORK VERY WELL FOR COMMERCIAL PROPERTIES, FOR THE BUILDING OWNER IS NOT ALSO THE ACCOUNT HOLDER. 
          AND SO, UNDER THE STANDARD OFFER PROGRAM, WHAT WE'RE ABLE TO DO BY OFFERING A, UH, TARIFF, A FEED AND TARIFF THAT HAS CASH VALUE THAT WE PAY FOR THE GENERATION, UM, OPENS UP TO THIRD PARTIES, SO POTENTIALLY, UH, DEVELOPERS THAT ARE NOT ALSO THE PROPERTY OWNERS. 
          WHAT THIS ALLOWS IS FOR COMMERCIAL PROPERTY OWNERS CAN, UH, LEASE THEIR ROOF TO THIRD PARTY DEVELOPERS, OR THEY CAN INSTALL SOLAR THEMSELVES. 
          UM, THE GENERATION FROM THAT SOLAR THEN, UH, RECEIVES A STANDARD OFFER TARIFF AT A CASH VALUE, AND THEN ALL OF THE BENEFITS OF THAT GENERATION. 
          INSTEAD OF, UM, BEING ACCOUNTED FOR AND BILLING ON SITE, THEY GO TO OUR COMMUNITY 
          [01:25:01]
SOLAR PROGRAM SO THAT RESIDENTIAL CUSTOMERS THAT CAN'T INSTALL SOLAR ON THEIR OWN ROOFTOPS CAN THEN, UM, SUBSCRIBE TO A COMMUNITY SOLAR PROGRAM THAT IS HOUSED ON COMMERCIAL ROOFTOPS IN THE LOCAL DISTRIBUTION GRID AREA. 
          UM, AND THEN IN THIS CASE, UH, WE CALL IT THE STANDARD OFFER BECAUSE THERE'S NO CONTRACT TERMS. OH, I'M GONNA WATCH MY DISTANCE HERE. 
          THERE ARE NO CONTRACT TERMS. UM, THE STANDARD OFFER IS THE RATE. 
          SO WE OFFER THAT SAME RATE TO ANYBODY, UM, ANY DEVELOPER OR PROPERTY OWNER THAT CHOOSES TO INSTALL THE SOLAR. 
          UM, AND THAT THAT ALLOWS US TO BE ABLE TO ACCEPT PROJECTS, UH, WITHOUT HAVING TO GO INTO CONTRACTS OR DEVELOP PPA. 
          UM, AND IN THIS CASE, OF COURSE, THE, THE THIRD PARTY DEVELOPERS, UH, ARE THE ONES THAT MAY PAY THE, THE CONTRACT OR THE LEASE AGREEMENTS WITH THE PROPERTY OWNERS. 
          UM, SO REAL QUICK, PROPERTY OWNERS CAN LEASE THE ROOF OUT TO DEVELOPERS, WE'LL PAY THE DEVELOPERS FOR THE GENERATION, AND THEN THAT GENERATION GETS ATTRIBUTED TO OUR COMMUNITY SOLAR PROGRAM. 
          NEXT SLIDE. 
          SO, UH, INADVERTENTLY OR INGENIOUSLY, THIS SOLVES A LOT OF PROBLEMS. UH, IT UNLOCKS LARGE PROJECTS. 
          UM, COMMERCIAL ROOF SPACES HAVE A LOT OF AREA FOR SOLAR PANELS. 
          UM, AND THIS SOLVES THE SPLIT INCENTIVE PROBLEM WHERE, UH, MAYBE A REAL ESTATE, UM, PORTFOLIO COMPANY, UH, HAS A LOT OF ROOF SPACE, BUT THEY'RE NOT ACTUALLY IN THE BUILDINGS, THEY'RE NOT ACCOUNT HOLDERS VALUE OF SOLAR WOULDN'T, UH, BENEFIT THEM. 
          UH, BY GIVING THEM THE STANDARD OFFER, UH, TARIFF, UM, WE'RE ABLE TO, UM, PAY THEM FOR THEIR GENERATION, UH, ENCOURAGING THEM TO INSTALL SOLAR ON THEIR ROOFTOPS. 
          UH, IT'S ALSO A SCALABLE PROGRAM. 
          WHEN WE TALK ABOUT THIS, WE TALK ABOUT, UM, GOING INTO PPAS FOR COMMUNITY SOLAR. 
          THAT DOES LOCK US INTO A RATE, UH, ON CITY BUILDINGS. 
          OBVIOUSLY, WE'RE TAKING THIS TACT IN THIS, UH, CASE WHERE WE'RE LOOKING AT CUSTOMER SIGHTED, UH, SOLUTIONS. 
          UM, BY HAVING THE RATE BE THE AVOIDED COST OF ENERGY, UH, KEEPS IT SCALABLE, IT MEANS THAT NON, UH, PROGRAM PARTICIPANTS AREN'T PAYING EXTRA TO BE PART OF THE PROGRAM THROUGH THE RATE. 
          UM, WHICH FOLLOWS THAT IT'S A TARIFF BASED SOLUTION. 
          UH, AS MENTIONED, THERE'S NO CONTRACT SO THAT, THAT LOWERS OUR, UM, TRANSACTION COSTS AND GETTING THESE SET UP. 
          UM, AND OF COURSE, THE END GOAL IS TO GET MORE COMMUNITY SOLAR, UH, LOCALLY CITED SOLAR SYSTEMS AVAILABLE FOR SUBSCRIPTION, UM, TO GIVE MORE OF OUR RESIDENTIAL CUSTOMERS ACCESS TO COMMUNITY SOLAR. 
          UH, NEXT SLIDE. 
          HOW IS THE PROGRAM DOING RIGHT NOW? IT'S DOING ALL RIGHT. 
          UH, WE HAVE 28 APPLICATIONS THAT HAVE, UH, BEEN SUBMITTED SINCE THE PROGRAM OPENED IN JANUARY OF 2025. 
          UH, OF THOSE 28 APPLICATIONS, NOT ALL OF THEM ARE COMPLETE. 
          SO, UH, THERE ARE 16 MEGAWATTS AC ON RECORD. 
          HOWEVER, SOME OF THOSE APPLICATIONS MAY NOT HAVE THE FULL SYSTEM SIZE. 
          AND, UM, WE HAVE 17 PROJECTS THAT ARE ENCUMBERED. 
          AND WHAT THAT MEANS IS THAT WE'VE REVIEWED THE, UM, YOU KNOW, USUALLY LIKE 60% ENGINEERING. 
          UM, WE'VE LOOKED AT IT AND, UH, SAID THAT IT'S, IT'S APPLICABLE FOR THE PROGRAM. 
          AND AT THAT POINT, UH, WE'RE WAITING FOR THE DEVELOPERS AND THE PROPERTY OWNERS TO FINISH THEIR CONTRACTS AND MOVE FORWARD. 
          UM, TO DATE, WE HAVE TWO PROJECTS TOTALING 1.1 MEGAWATTS AC THAT ARE FULLY INSTALLED. 
          AND OF OUR UNCOMFORT, WE HAVE ANOTHER TWO PROJECTS THAT ARE, UM, HAVE APPROVAL TO INSTALL. 
          SO, UM, THERE IS A LITTLE BIT OF A PROCESS. 
          THESE TEND TO BE LARGER SYSTEMS, SO, UH, IT DOES TAKE A LITTLE BIT OF TIME. 
          UM, AND WHAT WE HAVE SEEN TO DATE IS A LITTLE BIT OF A SLOW DOWN, WHICH WE'LL TALK ABOUT IN THE NEXT SLIDE. 
          UM, AND SOME OF THAT IS ATTRIBUTABLE TO AN UPCOMING RATE ADJUSTMENT. 
          SO IN 2026, UH, IN NOVEMBER, BOTH THE VALUE OF SOLAR AND THE STANDARD OFFER TARIFF RATES WILL BE ADJUSTED. 
          UM, THOSE VALUES ARE STILL GOING THROUGH, UH, YOU KNOW, THE APPROVAL PROCESS, BUT IN GENERAL, WE'RE, WE'RE LOOKING AT SOMETHING AROUND A 1.5 ISH CENT DROP IN THE RATE THAT WE CAN OFFER FOR STANDARD OFFER. 
          UM, THIS HAS GIVEN SOME OF OUR, UH, DEVELOPERS PAUSE. 
          THEY FEEL THAT IT CAN AFFECT, YOU KNOW, THE LEASING AGREEMENTS THAT THEY CAN PAY TO OUR CUSTOMERS. 
          UM, AND SO, UH, WE HAVE BEEN WORKING ON A SOLUTION FOR THIS. 
          UH, LET'S GO TO THE NEXT SLIDE. 
          WELL, JUST REAL QUICKLY. 
          SO, UH, CURRENTLY THE SYSTEM THAT'S OPERATING IT, UH, THE TWO SYSTEMS OPERATING ARE UNDER A MEGAWATT. 
          SO THEY GET THE 11.24, UH, CENTS PER KILOWATT HOUR RATE, UH, IN NOVEMBER. 
          UH, JUST LIKE THE VALUE OF SOLAR TARIFF, ANYTHING THAT'S, UH, INSTALLED AND OPERATING WILL THEN GET THE NEW RATE. 
          SO 
          [01:30:01]
NOVEMBER, THOSE PROJECTS WILL BE GETTING THE 9.58 CENT, UH, RATE, UM, IF THE ADJUSTED VALUES, UH, GET APPROVED AND GO THROUGH. 
          UM, AND THEN FOR LARGER SYSTEMS OVER MEGAWATT, UH, THEY DON'T GET THAT TRANSMISSION VALUE. 
          IT'S THE SAME COST BASIS OF VALUE OF SOLAR, UH, FOR THAT. 
          SO THEY WOULD ALSO BE GOING, UH, REDUCTION IN RATE FROM 8.41 TO 6.91. 
          UM, SO WE, WE HAVE UNDER, LIKE, WE DO UNDERSTAND THAT THIS IMPACTS, UM, OUR DEVELOPERS AND PROGRAM PARTICIPANTS. 
          YOU KNOW, ONE OF THE BENEFITS TO OUR CUSTOMERS IS THAT IT'S NOT A CONTRACT AND THAT THE PRICE, UH, YOU KNOW, STAYS ALONG THE MARKET RATE. 
          UM, BUT WE DO UNDERSTAND THAT THIS IS, UH, UH, A A LITTLE BIT PROBLEMATIC. 
          SO WE HAVE PROPOSED WITH COMMUNITY INPUT ON THE NEXT SLIDE. 
          MY LAST AND FINAL SLIDE, UM, UH, MINIMUM PRICE GUARANTEE. 
          UH, SO WHAT WE'RE OFFERING IS TO USE INCENTIVE DOLLARS FROM THE CBC, UM, TO PROVIDE A FLOOR ON THE RATE FOR A 10 YEAR PERIOD. 
          SO NEW PROJECTS MOVING FORWARD, UM, CAN GET A, UH, A GUARANTEED FLOOR. 
          UM, THERE'S NO CAP. 
          SO IF RATES TEND TO GO HIGHER, IF MARKET RATES, THE ENERGY COST GOES HIGHER, AND THEN THE TARIFFS ALSO GO HIGHER, THERE'S NO CAP THERE. 
          BUT, UH, IN YEARS THAT THEY FALL BELOW 11 CENTS FOR SYSTEMS OVER, SORRY, UNDER MEGAWATT, AND 8 CENTS FOR SYSTEMS OVER MEGAWATT WILL USE INCENTIVE DOLLARS, UM, TO PROVIDE A FLOOR TO STABILIZE THE VALUE STOCK TO THE DEVELOPERS. 
          UM, SO THIS IS, UH, A LIMITED APPROACH, AS WE WERE SAYING HERE. 
          IT'S A CONTROLLED WAY TO CONTINUE, UH, TO ENCOURAGE ADOPTION THROUGH THIS PROGRAM WHILE NOT COMMITTING US TO A, A HIGHER RATE, UM, FOR, UH, IN PERPETUITY, IF YOU ALL, SO WE'RE, WE'RE OFFERING THIS FOR A TIER CAPACITY OF 30 MEGAWATTS. 
          SO THE NEXT NEXT 30 MEGAWATTS TO BE INSTALLED, UM, ARE ELIGIBLE FOR THIS 10 YEAR GUARANTEE OF A, OF A MINIMUM FLOOR. 
          UM, THERE IS NOT A RATE ESCALATOR, UH, ASSOCIATED WITH THIS. 
          SO THAT 11 CENTS HOLDS FOR THE 10 YEARS, UM, AND IT'S, IT'S AGAIN, ELIGIBLE TO ANY NEW SYSTEMS. AND WITH THAT, THAT CONCLUDES MY, UH, MY PRESENTATION PART OF THE BRIEFING. 
          HAPPY TO TAKE ANY QUESTIONS. 
          THANK YOU, MS. PAXSON. 
          MM-HMM . 
          UM, I, I HAVE A QUICK QUESTION. 
          CAN YOU, UH, EXPLAIN AGAIN TO ME LIKE I'M FIVE WHY, UH, THE LARGER SYSTEMS GREATER THAN MEGA A MEGAWATT ARE GETTING LESS FOR THEIR PRODUCTION? MM-HMM . 
          YEAH, ABSOLUTELY. 
          SO, UH, THE TARIFF IS BASED ON MANY OF THE SAME ELEMENTS OF THE VALUE OF SOLAR TARIFFS. 
          SO IF YOU'VE SEEN THAT STACK AND, AND FOR BREVITY, WE DIDN'T INCLUDE IT HERE, BUT, UH, IT IS, IT'S INTEGRAL TO UNDERSTANDING THIS. 
          SO EXCELLENT QUESTION TO ASK. 
          UM, THE, THE MAJORITY OF THE VALUE STACK IS ENERGY COST, AND THAT'S, THAT'S THE SAME FOR OVER AND UNDER A MEGAWATT. 
          UM, AND THEN WE HAVE, UH, ANCILLARY SERVICE COSTS, WHICH IS THE SAME FOR BOTH, BUT THEN WE HAVE TRANSMISSION AVOIDED COSTS. 
          AND BECAUSE SYSTEMS OVER MEGAWATT, UM, THEIR RELATIONSHIP WITH ERCOT, UH, IS A LITTLE BIT DIFFERENT. 
          WE DON'T GET THOSE TRANSMISSION BENEFITS. 
          AND SO THAT DIFFERENCE IN PRICE IS, IS, UH, KIND OF WHAT ERCOT IS, IS CARVING, IF I CAN PUT THE BLAME ON THEM, SORRY, ERCOT, THAT'S SORT OF WHAT THEY'RE, THEY'RE CARVING OUT OF, OF THE BENEFITS THAT WE WOULD OTHERWISE GET. 
          OKAY. 
          SO THAT'S AN, AN AVOIDED TRANSMISSION COST THAT, THAT WE DON'T GET, THAT AUSTIN ENERGY DOESN'T GET ON THE LARGER SYSTEMS. THE SYSTEMS OVER MEGAWATT HAVE A DIFFERENT RELATIONSHIP WITH ERCOT, UH, AND OUR COMMIT CONNECTING IN A WAY THAT DOESN'T PROVIDE US THE, THE SAME MONETARY BENEFIT OF THE AVOIDED COST OF TRANSMISSION. 
          GOTCHA. 
          MM-HMM . 
          OKAY. 
          THANK YOU. 
          MM-HMM . 
          UM, YES, COMMISSIONER COOK, DO YOU HAVE A, RIGHT NOW AN AVERAGE, UH, SOLAR STANDARD OFFER COMMERCIAL CAPACITY? UM, WE TEND, THE MINIMUM SIZE IS 50. 
          UH, KW WE'RE TENDING TO SEE SYSTEM SIZES MORE AROUND 300 OR 400. 
          AND WHAT WE'RE ALSO SEEING IS THAT THEY TEND TO COME IN IN PORTFOLIOS, WHICH IS ONE OF THE THINGS THAT'S REALLY EXCITING ABOUT THIS, THIS PROGRAM. 
          AND WE WERE SEEING THAT ALSO IN OUR COMMERCIAL PROGRAMS AS WELL. 
          SO NOT ONLY IS IT, IT'S NOT JUST ONE 300 KW SYSTEM, IT TENDS TO BE MAYBE A HOST OF THEM ON ON BOX STORES OR, OR, OR OTHER THINGS THAT GET PUT THROUGH. 
          SO DIFFERENT AT DIFFERENT SITES AROUND AUSTIN. 
          BUT, UH, I WOULD SAY THREE HUNDRED'S PROBABLY ABOUT THE, THE SIZE. 
          OKAY. 
          UM, AND ALSO JUST FOR MY OWN LIKE KIND OF VISUALIZING IF I CAN, OR IF YOU CAN, ROUGHLY HOW BIG IS A MEGAWATT OF SOLAR PANELS? LIKE, IS 
          [01:35:01]
THAT LIKE A LARGE HEB ROOFTOP COVERED THAT, IS THAT A MEGAWATT OR THAT'S NOT EVEN, HMM, I'M TRYING TO THINK OF ALL THE DIFFERENT HEBS. 
          'CAUSE NOW THEY'RE SOME TWO STORY ONES. 
          UM, I DIDN'T BRING MY CELL PHONE UP HERE WITH ME, BUT, UH, IF YOUR AVERAGE SOLAR PANEL IS ABOUT 20 SQUARE FEET AND MAYBE 500 WATTS, SO, UH, IF SOMEONE, UH, I KNOW WE HAVE SOME MATH SAVVY PEOPLE HERE THAT ARE SMILING, KNOW, NOT REACHING FOR YOUR PHONE, MAYBE DOING IT IN YOUR HEAD. 
          OKAY. 
          IT'S LIKE TEN TWO APPROXIMATELY ON A HOUSE. 
          OKAY. 
          SIX TO 10 ON A HOUSE. 
          YEAH. 
          SO LIKE A, WHAT IS THAT? A HUNDRED A HUNDRED HOUSES FOR 150? YEAH. 
          OKAY. 
          YEAH. 
          NO, YEAH, JUST WONDERING BECAUSE YEAH, I'M MUCH MORE FAMILIAR WITH THE SIZE FOR A RESIDENTIAL, AND SO I DON'T KNOW, IT'S HARDER TO LIKE KIND OF GRASP IF LIKE GREATER THAN A MEGAWATT PROJECT IS GONNA BE LIKE OUT IN THE FIELD SOMEWHERE VERSUS IT CAN'T ACTUALLY BE ON LIKE A STRIP MALL OR SOMETHING LIKE THAT. 
          YEAH. 
          IF I, I, I SEE SOMEONE REACHING FOR A CALCULATOR, BUT IN, IN GENERAL, THE PANELS ARE FIVE 50 WATTS, MAYBE LET'S SAY 500 FOR EASY MATH. 
          THEY TAKE UP ABOUT 20 SQUARE FEET OF SPACE. 
          AND THEN YOU TYPICALLY, I WOULD ADD ANOTHER 20%, UH, ROOM THAT YOU WOULD NEED FOR INNER ROW SPACING OR IF THERE, THERE ARE OBSTACLES ON THERE. 
          SO, UM, I DO HAVE THAT NUMBER IN THE SLIDE SOMEWHERE, BUT I'M AFRAID TO SAY SOMETHING AND HAVE IT BE TERRIBLY WRONG. 
          UM, MM-HMM . 
          OKAY. 
          NO, WELL, IT'S NOT. 
          OKAY. 
          YEAH, IT'S, THAT'S HELPFUL. 
          THANK YOU. 
          MM-HMM . 
          MR. SCHWARTZ, I'VE FORGOTTEN THAT QUESTION ALREADY. 
          OH, OKAY. 
          YEAH. 
          SO IN THE LAST, I GUESS SIX WEEKS OR SO SINCE THE, THE, THE FLOOR, THE PRICE FLOOR WAS ANNOUNCED, HAVE YOU SEEN FEEDBACK FROM THE FOLKS THAT MIGHT HAVE HAD HICCUPS THAT WERE IN THE PIPELINE, BUT SORT OF MAYBE HAD, SEEMED LIKE THEY MIGHT NOT PROCEED FORWARD? WHAT IS THE FEEDBACK YOU'RE GETTING? ARE THEY, I GUESS PEOPLE ARE EXCITED ABOUT HIGHER PRICES. 
          HAVE THINGS BEEN MOVING FORWARD SINCE THEN, OR? YEAH. 
          YEAH. 
          WE HAVE SEEN, THERE'S A GENERAL SLOWDOWN IN THE MARKET JUST IN, IN, IN GENERAL IS SOMETHING THAT WE'VE SEEN. 
          BUT WE ARE IN TALKS WITH, UH, DEVELOPERS, UH, AND CUSTOMERS, AND WE ARE SEEING A LITTLE BIT OF NEW INTEREST FROM SOME LARGE SCALE CUSTOMERS THAT I'M EXCITED ABOUT. 
          SO, UM, YEAH, THINGS ARE, THINGS ARE MOVING FORWARD, LIKE THEY'VE PICKED BACK UP AGAIN. 
          OKAY. 
          AND THE TWO THAT ARE CURRENTLY ONLINE, THOSE WERE LAST YEAR? UH, YES, THEY WERE INSTALLED DECEMBER OF 2025. 
          MM-HMM . 
          OH, OKAY. 
          OKAY. 
          THANK YOU. 
          MM-HMM . 
          CERTAINLY. 
          ARE THERE QUESTIONS? I HAD A QUESTION ABOUT, UH, YOU MENTIONED THE, THE MINIMUM COMPENSATION MIGHT COME FROM THE COMMUNITY BENEFIT CHARGE, UM, AND THAT IS USED FOR ENERGY EFFICIENCY CAP, UM, OTHER THINGS MAYBE SO MM-HMM . 
          UM, DOES THAT IMPACT THE ABILITY TO DELIVER THOSE, THOSE THINGS? THE COMMUNITY BENEFIT CHARGE ALSO, UH, SERVES FOR OUR SOLAR PROGRAM INCENTIVES, AND WE HAVE A HOST OF SOLAR PROGRAMS, UM, YOU KNOW, EVEN FORECASTING, UH, FOR, UM, YOU KNOW, THE, THE RATE THAT WE'RE TALKING ABOUT. 
          SO, UH, 9.5, UH, WE'RE RECOVERING OR WE'RE, WE'RE MAKING UP TO 11 CENTS, SO IT'S LIKE 1.50 CENTS PER KILOWATT HOUR. 
          UM, IN CONTRAST FOR OUR COMMERCIAL PERFORMANCE BASED INCENTIVE, WE PAY UP TO 8 CENTS PER KILOWATT HOUR FOR, UM, PRODUCTION FOR OVER A PERIOD OF FIVE YEARS. 
          SO IT'LL COME OUT OF THE SAME BUDGET THAT OUR COMMERCIAL PROGRAMS COME, UM, UH, THAT OUR COMMERCIAL PROGRAM INCENTIVES COME OUT OF. 
          UM, BUT WE'RE INCENTIVIZING AT A MUCH LOWER RATE, AND IN PART THAT'S BECAUSE THIS, UH, THE FUNDING IS GOING TO THIRD PARTIES, UM, AND THEN WE'RE USING THAT ENERGY AND WE'RE TURNING AROUND AND, AND, UH, REPACKAGING IT FOR OUR COMMUNITY SOLAR PROGRAM CUSTOMERS. 
          UH, SO IT, WE ARE INCENTIVIZING THAT AT, AT A DIFFERENT RATE, BUT IT'S COMING OUT OF THE SAME BUDGET. 
          OKAY. 
          THANK YOU. 
          MM-HMM . 
          OKAY. 
          UM, I GUESS WITH THAT, UM, THANK YOU SO MUCH FOR THE PRESENTATION, UM, FOR BEING HERE IN, IN MR. HARVEY'S ABSENCE. 
          WE WISH HIM WELL. 
          UM, GREAT. 
          THANK YOU ALL. 
          THANK YOU. 
          UH, ALRIGHT, SO THAT BRINGS US TO THE END OF OUR AGENDA. 
          UM, AND NOW IT'S TIME 
          [FUTURE AGENDA ITEMS ]
TO TALK ABOUT OUR FUTURE AGENDA ITEMS. UH, I KNOW THE VICE CHAIR HAS SOME THINGS TO SAY. 
          JUST BEFORE I TURN IT OVER TO YOU, UM, COMMISSIONER SILVERSTEIN IS NOT HERE, AND SO I'M GOING TO SAY FOR HER, UM, THE DISTRICT ENERGY AND COOLING, UH, SHOULD COME ONTO THE RMC AGENDA. 
          UM, IS THERE ANY UPDATE ON THAT? 
          [01:40:01]
THERE IS NOT. 
          OKAY. 
          UM, GREAT. 
          UH, VICE CHAIR, WE WERE EXPECTING THAT LAST OCTOBER. 
          IT'S MAY. 
          UH, WOULD, WOULD IT BE OKAY TO ASK WHAT THE HOLD UP IS? THEY DON'T, THEY'RE NOT GONNA, WELL, THAT, THAT'S WHAT I MEAN. 
          WOULD, COULD YOU GET AN ANSWER FOR US BY THE NEXT MEETING SO WE KNOW WHY THERE IS SUCH A DELAY? SURE. 
          GREAT. 
          UM, I, UM, IF FOLKS HERE COULDN'T TELL, UM, I HAVEN'T HAD ENOUGH SLEEP, SO, UM, I'M PERHAPS MORE EDGY THAN I USUALLY AM, BUT, UM, UH, THE SENTIMENT THAT I EXPRESSED EARLIER WAS, UH, PURE. 
          IT WAS, IT WAS, UM, WELL MEANT AND IT WAS, AND I, UM, CONFESSED TO BE SOMEWHAT ANNOYED. 
          UH, I DO NOT BELIEVE THAT WE WERE GIVEN SUFFICIENT ANSWERS REGARDING THE COST OF BATTERIES. 
          AND IF IT TAKES BEING IN AN EXECUTIVE SESSION, SO BE IT. 
          I KNOW THAT THIS MAY SOUND UNPRECEDENTED, BUT IN FACT, I KNOW OF A COUPLE INCIDENCES IN THE PAST WHERE COMMISSIONS HAVE INDEED HAD EXECUTIVE SESSIONS. 
          I MIGHT MAKE THE ADDITIONAL RECOMMENDATION THAT SINCE THIS ALSO, UH, WOULD INTEREST THE ELECTRIC UTILITY COMMISSION, WE MIGHT POSSIBLY CONSIDER HAVING THIS EXECUTIVE SESSION, UH, HOLDING IT JOINTLY, UH, WOULD BE A BETTER USE OF EVERYONE'S TIME THAN IF AUSTIN ENERGY HAD TO GIVE TWO PRESENTATIONS OF THIS KIND OF COURSE. 
          UH, UH, WE WOULD BE SWORN TO SECRECY FOR THE REST OF OUR LIVES, . 
          BUT THEN AGAIN, IT'S HARD FOR ME TO IMAGINE THAT SOME OF THIS COULDN'T BE ANSWERED IN AT LEAST A GENERAL WAY WITHOUT HOLDING AN EXECUTIVE SESSION. 
          I MIGHT ADD THAT, UH, IF WE'RE ALREADY GOING TO BE IN SUCH A SESSION ON BATTERIES, MAYBE WE COULD ALSO TAKE UP GEOTHERMAL OR OTHER THINGS THAT MIGHT SEEM COMPETITIVE, BUT IF, IF IT WAS DONE BEHIND CLOSED DOORS, IT WOULD HAVE A, A LEVEL OF SECURITY THAT MIGHT, UH, UH, GIVE THE UTILITY MORE COMFORT. 
          UM, SEVERAL. 
          SO I, I'M, I'M MAKING THIS PROPOSAL, UM, AND, UH, GIVEN, GIVEN THAT, UM, I THINK I'M GONNA STOP THERE. 
          OKAY. 
          THANK YOU. 
          AND YOU SAID SOMETHING, UM, THAT, THAT REMINDED ME THAT LAST MEETING WE DID ESTABLISH A WORKING GROUP ON, UH, LONG DURATION STORAGE AND THE IDEA WAS TO HAVE MEMBERS OF THE EUC ALSO ON THAT WORKING GROUP. 
          SO I THINK THAT WOULD BE SOMETHING THAT THEY WOULD, WOULD BE INTERESTED IN TAKING UP ON THAT WORKING GROUP. 
          I'M NOT SURE WHO'S ON THAT YET, BUT, UM, COMMISSIONER COOK, YOU LOOK LIKE YOU MAYBE HAVE SOMETHING TO ADD. 
          NO, NO, I DON'T. 
          OKAY. 
          I WANT THAT. 
          NO. 
          OKAY. 
          UM, DOES ANYONE ELSE HAVE ANY OTHER FUTURE, FUTURE AGENDA TOPICS? OKAY. 
          UM, IF YOU HAVE TOPICS, PLEASE SEND THEM TO MYSELF AND MS. GOODWIN. 
          UM, THERE IS A, A DEADLINE. 
          I NEVER KNOW WHAT THE DEADLINE IS. 
          IT'S WAY EARLIER THAN YOU THINK. 
          IT'S LIKE PROBABLY NEXT MONDAY. 
          UM, AND, UH, WE WILL GET THOSE ADDRESSED. 
          UM, OH, OH, MM-HMM . 
          SO CLOSE . 
          I KNOW. 
          I'LL BE QUICK. 
          OH, YOUR MIC'S NOT ON. 
          I, I'LL BE QUICK. 
          WE, WE POSTPONE 
          [01:45:01]
THE PRESENTATION ON, UH, SOLAR PERMITTING UNTIL JUNE. 
          SO WOULDN'T WE WANT THAT ON THE JUNE AGENDA? OKAY. 
          SOLAR PERMITTING. 
          ALL RIGHT. 
          UM, AND MS. GOODWIN, DO WE HAVE ANY OTHER ITEMS FOR, FOR JUNE THAT YOU CAN SEE DO? YES, WE HAVE, UM, AUSTIN WATERS Q1, UH, REPORT. 
          WE ALSO HAVE, UM, A BRIEFING BY AUSTIN WATER ON LARGE INDUSTRIAL AND COMMERCIAL, UH, CUSTOMER WATER USAGE. 
          UM, THEY WILL ALSO BRING FORTH THEIR CAPITAL IMPROVEMENT PROJECTS FOR RECOMMENDATION. 
          UM, I HAVE GREEN CHOICE, UH, RESTRUCTURING AS A DISCUSSION ITEM AND ALSO THE SOLAR INSTALLATION PERMITTING, UH, FOR DISCUSSION. 
          YES. 
          ALRIGHT. 
          SOUNDS LIKE A FULL SLATE. 
          OKAY. 
          UM, UNLESS THERE'S ANY OBJECTION, WE WILL ADJOURN, UM, WITHOUT OBJECTION, 7:53 PM UH, THIS MEETING IS ADJOURNED. 
          THANKS EVERYONE. 
          THANK YOU. 
          THANKS ERIC.
* 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.