* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:04] NOVEMBER [CALL TO ORDER] 9TH, 2026. THIS CALL TO ORDER, IT IS 6:03. WE HAVE SOME PUBLIC COMMUNICATION. OH, LET ME MAKE ROLL FIRST HERE. VICE CHAIR BRYAN. COMMISSIONER ALVAREZ. OKAY. COMMISSIONER BELLAMY. COMMISSIONER BENAVIDES. COMMISSIONER BLACKBURN. SEE? HERE. COMMISSIONER GILLETTE. COMMISSIONER KIRKSEY. NASSER. HERE. COMMISSIONER REED, DON'T SEE. AND COMMISSIONER WHITE, I DON'T SEE EITHER RIGHT NOW. OKAY. [PUBLIC COMMUNICATION: GENERAL] OKAY. TWO SPEAKERS. DAVID LEVE. GOOD EVENING, EVERYONE. DAVID LEVE FROM DISTRICT EIGHT. GREAT TO SEE YOU AGAIN. I'M EXCITED TO SEE THE ONE GIGAWATT CARBON FREE RFP. SUPER AWESOME. AND I'D LIKE TO KNOW MORE ABOUT HOW THE RFPS ARE PROMOTED IN THE INDUSTRY SO WE CAN RECEIVE MORE RESPONSES. SO IF THERE'S A WAY TO, TO TALK ABOUT THAT AT SOME POINT, THAT WOULD BE GREAT. IT ALSO MIGHT BE HELPFUL, I NOTICED, TO HAVE A LITTLE BIT MORE CLARITY IN THE RFPS ABOUT WHAT YOU ALL ARE LOOKING FOR. SOME MORE DETAILS COULD BE HELPFUL. AND THEN SECOND TOPIC IS WHEN WE GET A CHANCE, IT'D BE GREAT TO HEAR AN UPDATE ON HOW WE'RE DOING ON THE SOLAR ON CITY BUILDINGS AS WELL AS THE SCHOOLS AND THE LANDFILL. I KNOW WE'RE WORKING ON THAT HARD. IT'D BE GREAT TO HEAR FROM AUSTIN ENERGY OR SOMEONE ABOUT HOW THOSE ARE MOVING, IF WE CAN DO ANYTHING TO SPEED THOSE UP. THIRD TOPIC IS YOU'LL HEAR MORE ABOUT THE TWO WORKING GROUPS LATER TONIGHT AND IT'S SUPER FUN. GLAD TO BE A PART OF THAT. AND WE'RE MAKING PROGRESS ON IMPROVING THE SOLAR TIMELINES AND ALSO LOOKING AT AFFORDABLE CARBON FREE OPTIONS FOR AUSTIN. AND LASTLY, SOMETHING THAT'S COME UP PROBABLY MAYBE FOR ALL OF US IN THE LAST COUPLE OF DAYS IS IT'D BE AWESOME TO BE THINKING ABOUT, UM, WHAT'S NOW POSSIBLE GIVEN THE RESULTS OF THE RECENT ELECTIONS THAT WASN'T POSSIBLY BEFORE. SO IF YOU WEREN'T THINKING ABOUT THAT BEFORE, MAYBE NOW'S A GOOD TIME TO BE THINKING ABOUT THAT. THANK YOU. THANK YOU. MR. WARD. HI, I'M, UH, JIM WARD IN, IN DISTRICT NINE. SO I UNDERSTAND AUSTIN HAS A GOAL TO BE CARBON FREE BY 2035. SO I'D LIKE TO HEAR ABOUT HOW WE'RE DOING ON THAT GOAL. AND EVEN MORE AS A, A LIFELONG PROJECT MANAGER, I'D LIKE TO HEAR ABOUT HOW WE'RE MEASURING OUR PROGRESS. FOR INSTANCE, IS THERE A PROJECT PLAN OR A GANTT CHART WITH MILESTONES, THAT SORT OF THING? SO THANK YOU. THANK YOU. ANY OTHER? I THINK THAT'S IT, THOSE TWO. [APPROVAL OF MINUTES] APPROVAL OF MINUTES. SO DO WE HAVE ANY UPDATES TO THE MINUTES FROM THE LAST EUC MEETING? OKAY. WE HAVE A MOTION AND A SECOND. SECOND. MOVE FOR APPROVAL. L? MOVE SECOND. I'LL SECOND. SECOND. ALL IN FAVOR? FIRST. AND SECOND. ALL IN FAVOR? OKAY. THANK YOU. OKAY, WE HAVE ACTION ITEMS [Items 2 - 12] TWO THROUGH 12. ANYONE WANT TO PULL ANY OF THE ITEMS TO DISCUSS INDIVIDUALLY? KIN? OKAY, WHICH ONES? NUMBER 10, PLEASE. COULD YOU SPEAK UP PLEASE? YEAH, SORRY. UH, NUMBER 10, PLEASE. NUMBER 10. OKAY. THANK YOU. I'D LIKE TO, UH, PULL, UH, ITEMS THREE AND 12. THREE AND 12. AND COMMISSIONER NESSER? I JUST HAVE A KIND OF A GLOBAL QUESTION ON ITEMS ONE THROUGH 12, SO I'M NOT SURE IF I SHOULD JUST WAIT UNTIL WE FINISH THE DISCUSSION ON THE, ON PULLING THOSE INDIVIDUAL ONES AND THEN ADD THAT AT THE END IF IT HASN'T BEEN ADDRESSED. WELL, IF YOU HAVE QUESTIONS ABOUT ANY OF THEM, THEN WE'LL HAVE INDIVIDUAL DISCUSSION. OTHERWISE, WE'RE GONNA CONSENT ON THE REST. UM, OKAY. SHOULD I TAKE THE FLOOR NOW TO JUST ASK MY GLOBAL QUESTION BECAUSE IT KIND OF ADDRESSES ALL OF THEM AND MAYBE YOU CAN HELP DIRECT ME ABOUT HOW TO MOVE FORWARD. [00:05:02] OKAY. WHY DON'T YOU JUST TELL US WHAT YOUR CONCERN IS? YEAH. I MEAN, I THINK, AND APOLOGIES, I'M A NEW COMMISSIONER, SO I'M KIND OF PLAYING CATCH UP AND TRYING TO FOLLOW, BUT, UM, ALL OF THESE CONTRACTS KIND OF AS A WHOLE REPRESENT A LOT OF DOLLARS. AND SO IT'S DIFFICULT TO UNDERSTAND, UM, WHETHER THERE'S ANY ANALYSIS BEHIND THEM IN TERMS OF UNDERSTANDING THE IMPACTS RATE PAYERS AND, UM, WHETHER THERE'S COST RECOVERY ASSOCIATED WITH THEM. AND I'M SPECIFICALLY THINKING ABOUT SOME OF THE EMINENT DOMAIN ITEMS, LIKE, ARE THESE JUST DOLLARS OUT THE DOOR AND, AND IS OUR ROLE AS A COMMISSION TO SORT OF STOP AND CONSIDER THE IMPACT THAT THEY MIGHT HAVE ON RATE PAYER? UM, SO IF THERE'S RESOURCES THAT I AS A COMMISSIONER SHOULD BE, YOU KNOW, DIGGING INTO, I'D WELCOME OTHER COMMISSIONERS TO HELP ME UNDERSTAND HOW I CAN BE TRACKING. IT'S A TON OF MONEY OUT THE DOOR AND HARD TO TRACK, YOU KNOW, WHAT, WHAT IT ACTUALLY REPRESENTS. UM, SO IN THE PACKAGE, THERE'S PUBLISHED MORE DETAIL IN ADDITION TO WHAT'S ON THE AGENDA ITEMS. UM, I GUESS YOU COULD ASK MORE IN DEPTH QUESTIONS ON THOSE. THAT'S WHAT WE DO WHEN WE HAVE INTEREST, LIKE THE QUESTIONS YOU'VE, UH, HEARD GOT PULLED. UM, IF YOU WANNA DO IN-DEPTH ANALYSIS, WE TYPICALLY DON'T DO SUPER IN DEPTH DURING AN EUC MEETING. IF THERE ARE FOLLOW-UP QUESTIONS THAT YOU'D LIKE TO GO INTO IN DEPTH BEYOND WHAT THE BACKUP MATERIAL THAT'S POSTED AND WHAT'S ON THE AGENDA. UM, TYPICALLY, THERE ARE SO MANY OF THESE THAT WE, WE DON'T HAVE THE BANDWIDTH GIVEN WE'RE ALL VOLUNTEER TO GO PERSONALLY DO DUE DILIGENCE. I MEAN, I DON'T SAY THAT WE DON'T DO DILIGENCE BY REVIEWING THESE, FOR EXAMPLE, BUT IN DEPTH INTO THE LE - THE LEVEL OF DETAIL THAT YOU MIGHT BE, UM, CONSIDERING. UM, I DON'T SEE HOW WE GO AND MONITOR, YOU KNOW, THROUGH THE CONTRACT OFFICE OR THE PROCUREMENT OFFICE OR ANYTHING LIKE THAT. SO IT REALLY IS TO THE LEVEL OF THE INFORMATION WE'RE PROVIDED, PLUS WHATEVER QUESTIONS WE MAY HAVE OUT OF, UH, PERSONAL CONCERN OR PERSONAL INTEREST OR PERSONAL EXPERTISE. UH - OKAY. CHAIR TUT, UM, MY QUESTION FOR ITEM THREE THAT I PULLED - UH-HUH. COVERS, UH, SOME OF COMMISSIONER NASSER'S CONCERNS. SO SURE, MY QUESTION FOR THREE COUNTS FOR THREE THROUGH EIGHT. SO HOPEFULLY THAT'S HELPFUL. OKAY. WE CAN MOVE ON. THANKS FOR SOME CLARITY AND I'LL JUST, UH, TRY TO TRACK THE CONVERSATION AND DO MORE HOMEWORK ON MY SIDE. OKAY. THANKS. UM, AL, DO YOU HAVE - YEAH, I JUST, UH, WANTED TO WEIGH IN ON THAT. UM, IN, IN ADDITION, EVERY ITEM POSTED HAS SOME STAFF MEMBER FROM AUSTIN ENERGY AS A SPOKESPERSON FOR THAT ISSUE. SO IF THERE ARE SPECIFIC QUESTIONS THAT YOU HAVE ABOUT ANYTHING, YOU CAN ALWAYS, WE CAN ALWAYS ASK THAT PERSON TO REPRESENT AUSTIN ENERGY AND, AND GIVE AT LEAST A LEVEL MORE DETAIL THAN WHAT'S HERE.THAT'S JUST MY COMMENT. MM-HMM. BE GLAD TO TALK OFFLINE TOO IF YOU'D LIKE TO SOMETIME. OKAY. CAN I SAY, CAN I SAY ONE MORE THING? UH, UH - OH, SORRY. CYRUS, WELCOME. UM, THANKS. SORRY I WAS LATE. UH, HAD A LITTLE TROUBLE LOGGING ON AS I SOMETIMES DO, UH, REMEMBERING WHICH AUTHENTICATOR SOFTWARE I'M USING. UM, UH, YOU KNOW, A LOT, A LOT OF THESE ITEMS, YOU KNOW, SOME OF THEM WILL SAY THIS AMOUNT IS ALREADY AVAILABLE IN THE CAPITAL BUDGET, SO IT SHOULDN'T IMPACT RATES MORE THAN RATES ARE ALREADY BEING IMPACTED. WHERE WE SOMETIMES HAVE A DISCUSSION IS SOMETIMES THESE ARE MULTI-YEAR CONTRACTS, AND SO WHILE MAYBE THAT FUTURE YEAR WILL BE DISCUSSED LATER, IT SOMETIMES IS A CONCERN OF COMMISSIONERS, RIGHT, WHEN, WHEN THEY'RE, WHEN YOU'RE KIND OF OBLIGATING A LOT OF MONEY LONG-TERM. SO I, I TEND TO BE LESS CONCERNED ABOUT THE THINGS THAT ARE SMALLER ITEMS AND YOU'VE GOT THE CAPITAL BUDGET ALREADY, UH, THERE VERSUS SOMETHING THAT'S, YOU KNOW, A LARGER AMOUNT OF MONEY THAT'S GONNA BE MULTIPLE YEARS WHERE I FEEL LIKE DUE DILIGENCE IS IMPORTANT. BUT I CAN'T, YOUR QUESTION ABOUT EMINENT DOMAIN, THAT'S, THAT'S, I'M GLAD SOMEONE ELSE, UH, PULLED THAT BECAUSE I'M, I NEVER KNOW WHAT DOES THAT MEAN IF COSTCO, YOU KNOW, IF WHEN YOU NEGOTIATE WITH LANDOWNERS, THE COST GOES WAY UP, WHAT HAPPENS? I DON'T, I DON'T REALLY KNOW THE ANSWER TO THAT. [00:10:01] OKAY. SO WE HAVE NO DISCUSSION ON TWO... WELL, AND CESAR, YOU WERE TALKING ABOUT DISCUSSION OF EMINENT DOMAIN BEING TWO THR - OR THREE THROUGH EIGHT, BUT I'M GONNA JUST - THIS IS THREE. LET'S JUST GO THROUGH. WE'RE GONNA HAVE THE DISCUSSION FIRST ABOUT THE ITEMS AND THEN VOTE ON THE OTHER ONES AFTERWARD. UM, IS THAT, IS THERE ANY PROBLEM WITH THAT PROTOCOL? OH, OKAY. WELL, LET'S JUST GO THROUGH AND, AND TALK BEFORE WE DO ANY VOTING THEN. OKAY, [3. Recommend approval of a resolution authorizing the filing of eminent domain proceedings and payment to acquire the property interests needed in support of Austin Energy’s Capital Express Central CKT823, 834, & 835 Structure Relocation 2021 Project for the public use of relocating various transmission structures along the existing Circuits 823, 834, & 835 to accommodate the Texas Department of Transportation’s expansion of Interstate Highway 35 as part of the Interstate 35 Capital Express program requiring the acquisition of a permanent electric transmission and distribution easement consisting of 0.0223 of one acre (972 square foot) easement, out of Outlots 20 and 21, Division “C”, City of Austin, Travis County, Texas, being a portion of Lot 7, Block 2, Resubdivision of Block 5 Plainview Heights, a subdivision of record in Book 4, Page 53, Plat Records, Travis County, Texas, said Lot 7 conveyed to Alejandro Arguello and spouse, Natalie Miles Arguello by General Warranty Deed dated October 31, 2000, as recorded in Document Number 2000176779, Official Public Records, Travis County, Texas, currently appraised at $78,489 subject to an increase in value based on updated appraisals, a Special Commissioner’s award, negotiated settlement, or judgment. The owners of the needed property are Alejandro Arguello and Natalie Niles Arguello. The property is located at 1010 East 38 ½ Street, Austin, Texas 78751. The general route of this project is comprised of three circuits that each cross over Interstate Highway 35 from East to West, along three separate lines. Circuit 823 is located at and along East 38 ½ Street and Circuits 834 and 835 are located at and along the North and South sides of Dean Keeton Street. Funding: $78,489 is available in the Capital Budget of Austin Energy.] SO ON NUMBER THREE. UH, YEAH, MY QUESTION WAS, UM, ARE WE GETTING ANY KIND OF, UM, REIMBURSEMENT FROM TXDOT FOR OUR RELOCATION WORK? UM, AND WHAT, AND IF WE ARE, WHAT KIND OF TIMELINE ARE WE LOOKING AT FOR GETTING REIMBURSED? UH, GOOD EVENING, COMMISSIONERS. LISA MARTIN, AUSTIN ENERGY'S DEPUTY GENERAL MANAGER AND CHIEF OPERATING OFFICER. CAN YOU HEAR ME? NO. HOW ABOUT I TRY LIKE THAT BETTER? ALL RIGHT. LISA MARTIN, AUSTIN ENERGY'S CHIEF OPERATING OFFICER. AND SO FOR ITEM NUMBER THREE FOR THE EMINENT DOMAIN ITEMS THAT, YES, IT IS REIMBURSABLE FROM TXDOT, AND, UM, THAT REIMBURSEMENT IS, YOU KNOW, IS, IS NORMALLY AFTER THE WORK HAS BEEN DONE. UM, THERE'S A PROCESS BY WHICH WE, YOU KNOW, DEMONSTRATE WHAT THE WORK HAS BEEN AND THE ULTIMATE COST. BUT YES, THIS, THIS COMPONENT OF, UM, EXCUSE ME, OF, OF THE, UM, ACQUISITION IS, IS REIMBURSABLE. THANK YOU. THANK YOU. OKAY. COMMISSIONER NASSER, DO YOU WANNA DISCUSS OR BRING UP ANY POINTS ABOUT EMINENT DOMAIN? THAT WAS REALLY MY QUESTION, WAS WHETHER IT WAS REIMBURSABLE, SO THANKS. OKAY, GREAT. FANTASTIC. OTHER QUESTIONS? LET'S SEE. WE HAD KAIBA ON 10. DAVE, COULD YOU TAKE THE VOTE ON ITEM THREE? I THOUGH WE WERE GONNA JUST GO THROUGH THE QUESTIONS FIRST, AND THEN WE'LL VOTE. WELL, THIS ITEM HAS BEEN PULLED. ITEM THREE WAS POLLED. QUESTIONS WERE ASKED. NOW YOU NEED TO TAKE A VOTE. YOU CAN MOVE ON TO THE NEXT POLLED ONE. BY NOT DOING THE CONSENT FIRST, THAT ALLOWED YOU OPPORTUNITY TO DO MORE QUESTIONS IN CASE THERE WERE MORE QUESTIONS OTHER THAN WHAT WAS POLLED. OKAY. FOLLOWING ME? OKAY. AWESOME. THANK YOU. SO DO WE HAVE CONSENT ON TWO? WELL, LET'S VOTE ON THREE SINCE WE, WE TALKED ABOUT THREE. SHE'S JUST SAYING THE EMINENT DOMAIN ONES, JUST DO THOSE. NO, BUT - NO, I DON'T THINK . IF YOU DID THREE, IT WAS POLLED, YOU NEED TO TAKE A VOTE ON IT. GO TO YOUR NEXT PULLED ITEM, WHICH IS ITEM 10. KERR, CAN WE JUST GO THROUGH AND VOTE ON THEM ONE BY ONE INSTEAD OF - AND THEN IF THERE'S - YEAH, I DON'T KNOW. CAN WE JUST DO THAT? I THINK WE'VE GOT WHAT YOU'RE, YOU'RE ADVISING. OKAY. WE WENT THROUGH THREE. LET'S JUST VOTE ON THREE. AND THEN WE'LL GO TO 10, AND WE'LL HAVE A DISCUSSION, THEN WE'LL GO TO 12, AND THEN WE'LL COME BACK AND DO THE CASSETTE. OKAY. ALL RIGHT. THANK YOU. THREE, DO I HAVE A MOTION AND A SECOND? MOTION BY CESAR, SECOND BY VICE CHAIR. ALL IN FAVOR? OKAY. [10. Recommend approval authorizing a contract for control system maintenance and technical support services for the Foxboro control systems at the Sand Hill Energy Center for Austin Energy with Schneider Electric Systems USA, Inc., for an initial term of one year in an estimated amount of $352,100 with up to four one-year extension options in variable amounts for a total contract amount not to exceed $1,621,000. Funding: $293,209 is available in the Fiscal Year 2026-2027 Operating Budget of Austin Energy and $58,803 is available in the Capital Budget of Austin Energy. Funding for the remaining contract term is contingent upon available funding in future budgets. ] NOW, LET'S GO TO 10. ABA, YOU HAD QUESTIONS ON 10? I DON'T REALLY HAVE A QUESTION. IT'S JUST, YOU KNOW, A COMMENT. UH, THIS IS, YOU KNOW, I GUESS ONE OF THE SMALLER CONTRACTS THAT WE SEE, BUT WE JUST CONTINUE TO SEE CONTRACTS COMING THROUGH TO SUPPORT SANDHILL AND DECKER. UM, AND I'VE NEVER BEEN CLEAR, AND I DON'T, I DON'T KNOW IF OTHERS ON THIS COMMISSION ARE CLEAR ABOUT ANY BUDGET FOR THOSE POWER PLANTS. UM, SO JUST KIND OF FEELS LIKE A, I DON'T KNOW, A BLOCK HOLE THAT, YOU KNOW, WHATEVER, WHATEVER IS NEEDED, UM, YOU KNOW, GETS, GETS THROWN AT IT. SO IT'S NOT A QUESTION. DOESN'T REQUIRE A RESPONSE. IT'S JUST A CONCERN THAT, YOU KNOW, AS DIFFERENT, UH, RESOURCE OPTIONS ARE CONTEMPLATED THAT, THAT THAT SEEMS TO BE THE APPROACH WITH THE FOSSIL FUEL INFRASTRUCTURE IN PARTICULAR. BUT I JUST WANTED TO PULL IT TO VOTE ON SEPARATELY, REALLY. OKAY. ANY OTHER COMMENTS ON 10? ALL RIGHT. DO WE HAVE A MOTION AND A SECOND? I MOVE APPROVAL. MOTION. SECOND. SECOND. COMMISSIONER JILLETT? ALL IN FAVOR? [00:15:04] LET ME KNOW WHEN YOU'VE GOT IT. GOT IT. COMMISSIONER WHITE AND NASSER. I'M VOTING AGAINST. I'M ABSTAINING. [12. Recommend approval authorizing a contract for overhead transmission electrical staff augmentation services to support transmission construction and maintenance for Austin Energy with Power Standard LLC, for an initial term of two years in an estimated amount of $20,000,000 with up to three one-year extension options each in an estimated amount of $10,000,000 for a total contract amount not to exceed $50,000,000. Funding in the amount of $208,333 is available in the Operating Budget of Austin Energy. Funding in the amount of $8,125,000 is available in the Capital Budget of Austin Energy. Funding for the remaining contract term is contingent upon available funding in future budgets.] OKAY. LET'S GO TO 12. CESAR? UH, SURE. SO MY QUESTION ABOUT THIS CONTRACT IS IT'S $50 MILLION OVER, OR UP TO, NOT TO EXCEED 50 MILLION OVER, UH, FOUR YEARS. IS THAT RIGHT? NO, TWO, THREE, FIVE YEARS. UM, AND I SEE THAT THIS, UH, VENDOR WON OUT OVER THE OTHERS, UH, UH, THROUGH THE PROCUREMENT PROCESS. THE QUESTION IS, IS IT REALLY, UM... I GUESS WHAT STANDS OUT IS THERE'S NO, UH, MINORITY AND WOMEN, WOMEN OWNED BUSINESS ENTERPRISE PROCUREMENT PROGRAM ACTIVITY ON A $50 MILLION PROJECT OR $50 MILLION, UH, APPROVED SPENDING. AND, UM, IT JUST SEEMS TO ME LIKE THERE WOULD BE OPPORTUNITIES FOR THAT. ANY RESPONSE, MOSTON ENERGY? YES. UH, MY NAME IS NORRIS EASON. I'M ESS E- ESFO DIRECTOR, UM, FILLING IN FOR ROC CARTER, MY VICE PRESIDENT. UM, THIS PARTICULAR CONTRACT, I HOPE THIS HELPS. IT'S, IT'S FOR THE TRANSMISSION, WHICH IS, UM, OUR UTILITY LINES THAT GO FROM GENERATION TO, UM, TO THE SUBSTATION AND FROM SUBSTATION TO SUBSTATION. IT'S, UM, LIKE 633 MILES, UM, OF ELECTRIC UTILITY LINES AND 4,500 STRUCTURES. AND SO, UM, IT'S IMPORTANT FOR US TO GET, UH, SPECIALIZED, UH, COMPANIES THAT COME IN THAT HAVE THE EQUIPMENT AND THE PERSONNEL, UH, EXPERTISE ON, ON DOING THAT. SO IT'S OPEN TO ANYONE THAT HAS THAT. UM, TRANSMISSION TYPICALLY IS, IS NOT AS MANY, UM, OPTIONS OUT THERE, BUT WE DO WANNA MAKE SURE WE HAVE THAT AVAILABLE FOR OUR, OUR SYSTEM. OKAY. SO THERE'S LIKE A HAULING COMPONENT TO THIS PROGRAM, IS THAT TRUE? UH, YES. IT COVERS ALL OF THE PERSONNEL THERE AND THE EQUIPMENT THAT THEY NEED, UM, TO COMPLETE THE JOBS, HAULING AND SUCH. OKAY. COMMISSIONER BENAVIDEZ, UH, LISA MARTIN AGAIN. I JUST WANTED TO POINT OUT, IN THE, UM, RCA, IT TALKS ABOUT HOW... SO YOU'RE PROBABLY FAMILIAR THAT THE SMALL MINORITY BUSINESS RESOURCES DOES A REVIEW OF THE, UH, YOU KNOW, SCOPE AND DETERMINES IF THERE ARE ANY SUBCONTRACTING OPPORTUNITIES AVAILABLE. AND SO THEY HAVE DETERMINED THAT THERE AREN'T ANY. UM, AND SO, UH, YOU KNOW, IT IS WHAT IT IS. THANK YOU. THANK YOU. I HAD A FOLLOW-UP, OR MAYBE NOT A FOLLOW-UP, BUT A SEPARATE QUESTION. SO IN THE MATERIALS, IT SAID IT WAS FOR, LIKE, A DAILY STAFFING NEED. IS THIS STAFFING THAT... OR WHAT IS THE BUSINESS USE JUSTIFICATION FOR DOING IT THROUGH THIS METHOD AS OPPOSED TO FTES? UH, YES. UH, SO THIS IS AUGMENT THE, THERE'S 16 FIELD STAFF, AU- AUSTINER STAFF, AND SO POWER STANDARD, UM, GIVES US, UM, STAFFING THAT DOES NOT LEAVE FOR STORM OR ANYTHING. THEY STAY THE WHOLE YEAR, AND IF THEY NEED ADDITIONAL RESOURCES, IT COVERS THOSE RESOURCES AS WELL. AND SO THAT WAY, IF WE DON'T NEED AS MANY FOR PROJECTS, WE CAN LET SOME OF THEM GO. SO IT'S JUST THE FLEXIBILITY COMPONENT THAT - YES. MAKES THIS MAKE SENSE? YES, MA'AM. OKAY. THANKS. ALL RIGHT. THANK YOU. OTHER, ANY OTHER QUESTIONS? ONLINE, ANY? OKAY. 12, DO WE HAVE A MOTION AND A SECOND? MOTION. COMMISSIONER BELLAMY. SECOND. COMMISSIONER, VICE CHAIR. ALL IN FAVOR? OKAY. [Items 2, 4-9, & 11] OKAY, NOW LET'S GO BACK AND DO THE CONSENT. SO THAT WOULD BE TWO, FOUR, FIVE, SIX, SEVEN, EIGHT, NINE, AND 11. [00:20:03] DO WE HAVE A MOTION AND A SECOND? I'LL MOVE APPROVAL. COMMISSIONER KIRKSEY, MOTION. SECOND. VICE CHAIR BRADEN? OKAY. SECOND. COMMISSIONER BENAVIDEZ, SECOND. ALL IN FAVOR? AYE. OKAY. THANK YOU. ITEM 13, [13. Staff Briefing on the Fourth Quarter Operations Report by Lisa Martin, Deputy General Manager and Chief Operating Officer.] STAFF BRIEFING ON FOURTH QUARTER OPERATIONS. GOOD EVENING AGAIN. I'M GONNA TRY TO JUST WAVE IF YOU CAN'T HEAR ME FOR ANY REASON. I'M GONNA TRY TO PROJECT AND NOT... OKAY. ALL RIGHT. GOOD EVENING, CHAIR TUTTLE, VICE CHAIR BRAYDEN, AND COMMISSION MEMBERS. UM, I AM LISA MARTIN, AUSTIN ENERGY'S CHIEF OPERATING OFFICER, AND HERE TONIGHT I HAVE THE, UH, QUARTERLY OPERATIONS UPDATE FOR JULY, AUGUST, AND SEPTEMBER, OR Q4 OF FISCAL YEAR 2026. LET'S... CAN WE DO A CHECK REAL QUICK? DOES EVERYBODY ONLINE... CAN YOU HEAR, LISA? I CAN. OKAY. MAYBE YOU CAN HEAR BETTER THAN WE CAN'T EVEN HEAR. OKAY. OKAY. UM, NEXT SLIDE, PLEASE. I'M GONNA FOLLOW THE STANDARD AGENDA AND PROVIDE AN ENVIRONMENTAL AND RELIABILITY PERFORMANCE UPDATES, AND THEN I'LL END WITH A BRIEF UPDATE ON THE BASE POWER AGREEMENT. NEXT SLIDE. OUR EXECUTIVE SUMMARY SHOWS THAT 64% OF ALL THE ENERGY WE GENERATED THIS QUARTER WAS CARBON-FREE. THAT SAME CARBON-FREE GENERATION SERVED 56% OF OUR CUSTOMER USAGE THIS QUARTER, THAT IS 56% CARBON-FREE AS A PERCENTAGE OF LOAD. OUR GENERATOR RESOURCE COMMERCIAL AVAILABILITY MET SUMMER TARGETS. OUR MAINTENANCE AND PREP WORK IN THE PREVIOUS QUARTERS SERVED US WELL THIS SUMMER. AND THEN FINALLY, YOU'LL SEE OUR DISTRIBUTION RELIABILITY METRICS SHOW IMPROVEMENTS IN OUTAGE FREQUENCY AND STABILITY AND OUTAGE DURATION ON AVERAGE ACROSS OUR SYSTEM. SO ALL IN ALL, A PRETTY GOOD UPDATE TO PROVIDE OUT THIS QUARTER. UM, AND LET'S GO INTO SOME OF THE DETAILS. NEXT SLIDE, PLEASE. ALL RIGHT. SO FOR FY26 Q4, OUR CARBON-FREE GENERATION AS A PERCENTAGE OF LOAD AVERAGED 56%. THIS MEANS THAT AUSTIN ENERGY SERVED THE ENERGY CONSUMED BY OUR CUSTOMERS WITH 56% CARBON-FREE SOURCES. THE DARKER GREEN ON THE BOTTOM IS THE NUCLEAR, UH, CONTRIBUTIONS, WHICH COVERED ABOUT 19% AND, UH, OF CUSTOMER USAGE, AND THE RENEWABLE COVERED 37%. NEXT SLIDE. YES, COMMISSIONER BRYAN. MS. MARTIN, UH, FOR YEARS, WE HAVE HAD A SLIDE, PAGE SIX, THAT FOLLOWED THIS, THAT SHOWED OUR DECLINING PERCENTAGE OF RENEWABLE AS A PERCENT OF LOAD. AND NOT EVERY TIME, BUT FREQUENTLY, I WOULD MENTION THAT AND HOPE THAT WE COULD DO BETTER. UH, SO IT'S REALLY WONDERING WHY THAT SLIDE WENT AWAY. IT'S NOT THAT WE DON'T NEED THAT IN FRONT OF US TO CREATE THE WILL TO DO BETTER. UH - YES. I, I SURE WOULD LIKE TO SEE THAT SLIDE RETURN TO THE PRESENTATION. EVEN IF WE'RE NOT DOING WELL, WE NEED TO KNOW THAT OVER A LONGER TIMEFRAME TO, TO REESTABLISH OUR MOTIVATION, IN MY OPINION. IT'S AN EXCELLENT POINT. THAT SLIDE, UM, WHICH SHOWS THE ROLLING 12-MONTH CARBON-FREE AS A PERCENTAGE OF LOAD AVERAGE, UM, SHOWED 62% THIS QUARTER. THE, THE REASON WE'VE BEEN TALKING A LITTLE BIT ABOUT HOW WE CAN DEMONSTRATE NOT ONLY THE CARBON-FREE ENERGY THAT WE GENERATED, BUT ALSO OUR CARBON-FREE AS A PERCENTAGE OF LOAD. THAT LATTER METRIC REALLY CONFUSES A LOT OF PEOPLE, SO WE'VE BEEN TRYING TO MAKE IT A LITTLE BIT EASIER, AND IN THE SHUFFLE, I ENDED UP DROPPING THAT SLIDE OUT, UM, AND SO I APOLOGIZE FOR THAT. BUT THE PERCENTAGE IS 62%. OKAY. WELL, IT'S, UH... WHAT'S VALUABLE ABOUT THAT SLIDE IS THE LONGER TIMEFRAME AND THE, AND THE BIGGER PERSPECTIVE, BECAUSE IF WE LOOK AT JUST, "OH, WE DID A LITTLE LESS THAN LAST YEAR, UH, TOO BAD." BUT WE ALSO DID LESS THAN LAST YEAR, LAST YEAR, AND LAST YEAR, AND LAST YEAR. SO WE REALLY NEED TO SEE, I THINK, OUR, OUR BIG TREND, BECAUSE WE HAVE NINE YEARS LEFT TO GET TO 100%, AND - THAT'S RIGHT. I AGREE WITH YOU. WE NEED THAT MOTIVATION. I AGREE WITH YOU. YES, WE, WE HAVE BEEN... UH, WE HAVE BEEN SEEING THAT OUR CARBON-FREE RESOURCES AREN'T GOING NEARLY AS FAR, UM, FOR A NUMBER OF REASONS, AND THAT SLIDE IS A, IS A GOOD REMINDER. AND WE'LL, WE'LL BRING IT BACK IN, UM, IN, IN SOME FORM, CERTAINLY DURING OUR, OUR, OUR ANNUAL UPDATES, AND WE'LL SEE IF IT STILL HAS A S - A, A SPOT IN THE QUARTERLY UPDATES. OKAY. THANK YOU. THANK YOU. CAN YOU EXPLAIN MORE ABOUT THE RENEWABLE RESOURCES AREN'T GOING SO FAR? AND WE'VE HAD FOR A LONG TIME. AREN'T WE REALLY TRYING TO TARGET NOT BEING SHORT OR LONG OR MAYBE BEING A LITTLE BIT LONG? AND WE'VE BEEN SHORT ON JEN FOR HOW MANY QUARTERS? [00:25:01] WELL, IT DEPENDS ON THE QUARTER AND THE TIME OF YEAR, UM, AND ALSO DEPENDS ON THE ERCOT MARKET, AND WE'RE GONNA TALK ABOUT THAT ON THE NEXT SLIDE. UM, BUT... SO WE'RE NOT NECESSARILY TARGETING TO MAKE OUR GENERATION EQUAL OUR LOAD EXACTLY. OUR GENERATION IS DISPATCHED BASED OFF OF, YOU KNOW, THE ERCOT MARKET ECONOMIC DISPATCH, AND, UM, SOMETIMES IT'S, IT'S BETTER TO PROCURE FROM THE ERCOT MARKET. BUT ALL OF THAT IS, IS, UH, YOU KNOW, AS THE LANDSCAPE CONTINUES TO CHANGE, WE SEE, UM, DIFFERENT OUTCOMES EVERY QUARTER. AND SO, UM, WE'LL, WE'LL TALK ABOUT THAT HERE ON THIS SLIDE A LITTLE BIT. OKAY. OKAY. COULD YOU ALSO - AND, AND I HAVE ONE QUICK, UH, ONE QUICK QUESTION AS WELL. I DON'T KNOW WHO IS ON STACK OR WHATEVER. YOU HAVE A QUESTION FOR ME, COMMISSIONER? GO AHEAD CYRUS. YEAH. UM, THA- THANKS, THANKS FOR PRESENTING. I, I, I BELIEVE IT WAS LAST YEAR WE, UH, CONTRACTED SOME ADDITIONAL, UH, WIND RESOURCES FROM E - SOME EXISTING, UH, WIND A LITTLE BIT TO THE WEST OF US, AND THEN A LITTLE FURTHER WEST. ARE THOSE... HAVE THOSE CONTRACTS ALREADY BEEN INCORPORATED, UH, INTO THIS RESOURCE MIX? I WASN'T SURE THE TIMING OF THOSE. ONE WAS IN GOLDWORTH AND ONE WAS KINDA EAST OF LUBBOCK. I JUST DIDN'T KNOW IF THOSE WERE ALREADY BEING REFLECTED IN THESE NUMBERS. THEY ARE NOT YET REFLECTED. THEY HAVE NOT COME, UH, INTO OUR PORTFOLIO YET. OKAY. AND DO, DO WE KNOW THE TIMING OF THAT? WE'RE ANTICIPATING THE START OF THE, OF NEXT YEAR. UH, WE'RE STILL WORKING THROUGH THE FINAL DETAILS WITH THE COUNTERPARTY. GREAT. APPRECIATE THE INFO. MM-HMM. COULD I, COULD I ALSO ASK FOR A COMPARISON OF RENEWABLE PERCENTAGE IN ERCOT? UH, A DECADE AGO, UH, WE USED TO THINK WE'RE DOING GREAT, AND IF WE HAVE TO BUY OFF THE MARKET, IT'S TERRIBLE. IT'S FULL OF COAL. IT SUCKS. BUT NOW, ERCOT HAS COME A LONG, LONG WAY, AND IT SEEMS TO ME WHAT I SAW RECENTLY, WE WERE MAYBE WITHIN... THEY WERE WITHIN 5% OF US OR SOMETHING. SO THE OVERALL TEXAS MIX IS IMPROVING, AND THAT SHOULD MAKE US HAPPY, BUT IT ALSO SHOULD CHALLENGE US MORE. SO YOU'LL BE HAPPY TO KNOW, UH, VICE CHAIR BRYAN, THAT WE ARE THINKING SIMILARLY, AND WE'RE TRYING TO FIGURE OUT HOW TO, HOW DO WE TAKE THAT INTO CONSIDERATION WHEN WE DO HAVE SIT- SITUATIONS LIKE THIS MONTH WHERE OUR GENERATION DOESN'T MEET OUR CUSTOMER'S CONSUMPTION. AND SO YOU'LL SEE IN THE BOTTOM, I'M GOING A LITTLE BIT OFF SCRIPT, BUT YOU'LL SEE THE YELLOW BAR IN THE BOTTOM WHICH SAYS ERCOT MARKET TRADE. SO 13% OF OUR, OF OUR, OUR, OUR, UM, CUSTOMER CONSUMPTION WAS MET THROUGH ERCOT MARKET AND TRADES, BILATERAL TRADES. AND, UM, SO WE, WE'RE LOOKING AT WHAT IS THAT PERCENTAGE OF THE ERCOT MIX? AND, AND WE'RE NOT QUITE SURE HOW TO INCORPORATE IT IN HERE. WE HAVE SOME EXPERTS, UH, STUDYING THAT A LITTLE BIT MORE. MM-HMM. BUT I WILL SAY THAT IN GENERAL, UH, DURING THIS QUARTER WHERE OUR CARBON-FREE PERCENTAGE WAS 56%, UM, I... IF THE ME - MY MEMORY SERVES, I THINK ERCOT'S WAS ABOUT 42% FOR THIS QUARTER. MM-HMM. I JUST KNOW ANECDOTALLY, SOME DAYS I LOOK AT IT AND THEY'RE BETTER THAN US, BUT THAT'S ONLY THAT MINUTE, AND I KNOW THAT'S NOT THE WHOLE STORY. THAT'S RIGHT. UH, COULD YOU TELL ME WHAT YOU MEAN BY TRADES IN THE ERCOT? UH, THAT'S SOMETHING DIFFERENT THAN JUST BUYING IT OFF THE WIRE. SURE. YEAH. SOMETIMES THERE'S, THERE'S, UH, YOU KNOW, FORWARD, UM, YOU KNOW, FORWARD PURCHASES FOR FIRM ENERGY OR WHATNOT, WHETHER IT'S, LIKE, OFF OF, UM... IT COULD BE, UH, A TRADE WITH A COUNTERPARTY, UM, OFF OF... UNDER A, AN EXISTING, UH, ENABLING AGREEMENT, LIKE AN EEI, UM, OR, UM, YEAH, IT, IT'S ESSENTIALLY JUST A, A, A SHORT-TERM DEAL WITH A THIRD PART, WITH ANOTHER PARTY. IT, IT'S OPPORTUNISTIC THOUGH. IT'S NOT SOMETHING THAT YOU HAVE A LONG CONTRACT WITH. THEY'RE CERTAINLY NOT AS LONG-TERM AS THE POWER PURCHASE AGREEMENTS. OKAY. SO IF ERCOT WAS AS CLEAN AS AE'S ENERGY, WE WOULDN'T HAVE 64% FOR THE GENERATION, AND THEN 56% OF THE LOAD, RIGHT? THEY WOULD BOTH BE, SAY, 64% IF ERCOT WAS AT THE SAME LEVEL? I'M NOT SURE I'M FOLLOWING THAT LOGIC. UM, THE GEN - AE GEN FLEET HAS 64% CARBON-FREE ENERGY GENERATED? DURING THIS QUARTER, YES. DURING THIS QUARTER, BUT YOU WENT AND BOUGHT OFF THE ERCOT MARKET, AND THAT LOWERED THE AVERAGE - OH, NO, NO, NO, NO, NO. TO 56%. NO. NO, NO, NO. OKAY. SO LOOK AT THE, UM, STACK ON THE FAR RIGHT THAT SAYS GENERATION. UH-HUH. IF YOU LOOK AT HOW MUCH WE GENERATED, THIS IS IN TERMS OF MEGAWATT HOURS, IT WAS ABOUT 4.2, 4.3 MILLION MEGAWATT HOURS. IS THAT NUMBER AT THE TOP? WHEN YOU LOOK AT HOW MUCH OF THAT ENERGY GENERATED WAS CARBON FREE THAT'S 64%. [00:30:03] NOW, WE... IF YOU TAKE THAT SAME ENERGY AND YOU, YOU COMPARE IT TO HOW MUCH OF OUR LOAD IT SERVED, IT SERVED 56% OF OUR LOAD, BECAUSE OUR LOAD WAS HIGHER THAN WHAT WE GENERATED. OKAY. SO IF YOU PROCURED 13%, YOU'RE SAYING 64 TIMES 87% IS THAT 56? I HAVEN'T DONE THE MATH CALCULATOR. DON'T ASK ME TO DO MATH ON THE, THE FRONT OF THE PODIUM AND - BUT, BUT, SO, I MEAN, I CAN SEE YOU GO... IF YOU HAVE GENERATOR FAILURES OR YOU JUST DON'T HAVE THE CAPACITY READY, YOU GO TO THE MARKET. AND HOPEFULLY FOR THE CUSTOMERS, IT HAPPENS TO BE LESS EXPENSIVE WHEN YOU GO TO THE MARKET. OR I CAN SEE THAT SORT OF A SCAD WOULD MAKE IT TO WHERE SOME OF YOUR GENERATION JUST DOESN'T GET DISPATCHED OR REACH KICKS IN MORE, RIGHT? BUT IT JUST SEEMS LIKE, UM, WHAT WE HAVEN'T GOT A VISION FOR RIGHT NOW IS HOW WE START RECOVERING AND HAVING A POSITIVE SLOPE AGAIN FOR THE, THE AMOUNT OF ZERO CARBON. I, I ASSURE YOU WE HAVE, UH, A LARGE GROUP OF EXPERTS WORKING ON TRYING TO FIGURE OUT HOW TO CHANGE THE CURVE AND TO FIGURE OUT WHETHER OR NOT WE SHOULD CON - HOW WE SHOULD CONSIDER THESE ERCOT MARKET TRADES, OR ERCOT MARKET AND TRADES, SORRY, INTO THE MIX. WELL, WASN'T IT OUR GENERAL GOAL TO BALANCE GENERATION AND CONSUMPTION? SO IN THE OLD ERCOT MARKET, RIGHT, IT USED TO BE THAT YOU HAD TO BALANCE, RIGHT? IN THE OLD, YEAH, UH-HUH. RIGHT. AND NOW EVERYTHING YOU GENERATE, YOU SELL INTO THE MARKET, AND THEN ALL OF THE LOAD THAT YOU SERVE, YOU PURCHASE THAT ENERGY FROM THE MARKET. RIGHT. AND SO IT'S REALLY ABOUT BALANCING DOLLARS. IT'S ABOUT A FINANCIAL BALANCE. AND SO THE REASON THAT WE CONTINUE TO HAVE A GENERATION FLEET IS BECAUSE IT HELPS TO OFFSET. IT, IT SERVES AS ESSENTIALLY A, A HEDGE AGAINST THOSE FLUCTUATING MARKET PRICES THAT WE PAY IN THE ERCOT MARKET. AND WE ALSO LIKE TO OWN OUR GENERATION BECAUSE THEN WE CAN HAVE SOME CONTROL ABOUT WHAT PERCENTAGE OF IT IS CARBON-FREE. SO IT'S NOT AS SIMPLE. IT'S NOT... YEAH, IT'S NOT AS SIMPLE TO SAY THAT YOU JUST ALWAYS WANNA MATCH YOUR GENERATION TO YOUR LOAD BECAUSE REMEMBER, THE BENEFIT OF THE MARKET IS THAT IT'S RUNNING THE ECONOMIC DISPATCH TO FIGURE OUT ARE THESE THE RIGHT UNITS OR IS THERE, ARE THERE OTHER RESOURCES THAT ARE LOWER PRICE THAT SHOULD BE RUN? RIGHT. I, I, I AGREE, YOU'RE NOT HAVING TO MATCH LOAD TO GENERATION MOMENT BY MOMENT LIKE THE OLD DAYS, BUT IN AGGREGATE OVER A YEAR, AREN'T WE TRYING TO GENERATE AS MUCH AS WE USE BECAUSE OF THE BENEFITS OF OUR OWN GENERATION? UH, IN GENERAL, BUT SOMETIMES, LIKE I SAID, IT'S, THAT'S NOT, YOU KNOW, THE, UH, THE UNITS ARE NOT THE MOST ECONOMIC IN THE ERCOT MARKET, AND SO THEREFORE OUR, SOMETIMES OUR CUSTOMERS CONSUME MORE THAN WE GENERATE. IF YOU LOOK AT OUR PORTFOLIO, RIGHT, WE HAVE MEGAWATTS WAY MORE THAN, UH, WHAT OUR PEAK LOADS ARE. MM-HMM. A LOT OF THOSE ARE INTERMITTENT. UH, THEY DON'T, YOU KNOW, DEPENDING ON THE TIME OF DAY, THEY'RE SHOWING UP IN VARIOUS WAYS. THEY HAVE DIFFERENT CAPACITY FACTORS. AND SO WE'RE CONTINUING TO LOOK FOR WHAT WE SHOULD ADD TO OUR PORTFOLIO, UM, SO THAT WE CAN ULTIMATELY, RIGHT, AS WE LOOK OUT INTO THE, WHAT THE FUTURE, UM, AS WE, WE FORECAST WHAT THE FUTURE MARKET'S GOING TO LOOK LIKE, UM, AND WHAT ELSE IS HAPPENING IN THE MARKET, LIKE, WHAT ELSE IS GONNA COME IN TO BE ADDED TO THE MARKET, UM, ESSENTIALLY TO TRY TO FIGURE OUT HOW TO, UH, KEEP COSTS AS, AS, AS LOW AS POSSIBLE FOR OUR CUSTOMERS WHILE ALSO MAINTAINING A RELIABLE PORTFOLIO, UM, RELIABILITY FOR OUR CUSTOMERS, AND OF COURSE, ADVANCING OUR CLEAN ENERGY GOALS. SO IT'S A, IT'S A BALANCE OF ALL OF THE THINGS. OKAY. WELL, OTHER QUESTIONS, BECAUSE I DON'T WANNA... I SEE ANNE KAIBA? YEAH. CHAIR, UM, IS IT BETTER TO JUST JUMP IN OR CAN YOU SEE THE LITTLE ORANGE HANDS WHEN WE PUT THOSE UP? I'M NEVER CERTAIN. I, I COULDN'T HEAR HER. I HAVE TROUBLE UNDERSTANDING YOU. SHE'S ASKING IF SHE SHOULD JUST JUMP IN OR IF YOU'RE SEEING THE ORANGE HANDS. IF IT'S BEEN TOO LONG, PLEASE JUST JUMP IN. OKAY. YEAH, I'LL JUST STOP USING THAT. UM, I WAS WONDERING ABOUT THE TRADES. CAN YOU, UM, TELL US A LITTLE MORE, LISA, ABOUT THE DURATION OF THOSE, WHAT KIND OF RESOURCES, UM, UH, AE IS, IS GETTING THROUGH THESE TRADES? AND IS THIS A RELATIVELY NEW THING OR IS IT JUST A CHANGE IN HOW IT'S BEING LABELED MAYBE? OR I DON'T REMEMBER SEEING IT. COMMISSIONER WHITE, YOU WERE CUTTING OUT, BUT I THINK YOU WERE ASKING ABOUT, UH, WHAT KIND OF, UH, ENERGY IS BEHIND THE TRADES AND IF IT'S A NEW THING OR IF IT'S HOW IT'S BEING LABELED. DID I CAPTURE YOUR QUESTION CORRECTLY? UM, [00:35:01] YES, AND THE DURATION. I'M, I'M CURIOUS ABOUT THE DURATION OF THOSE AGREEMENTS. OKAY. SO, UM, THEY, THESE ARE, ARE TRADES THAT ARE DONE, UH, RELATIVELY SHORT TERM. SO THEY COULD BE FOR A DAY AHEAD, THEY COULD BE FOR BALANCE OF MONTH, IT COULD BE FOR THE BALANCE OF WEEK. UM, IT COULD BE FOR A, A SHORT TERM FOR, LIKE, WE MIGHT BE LOOKING AND SAYING THAT IT, IT LOOKS LIKE AS WE'RE GOING INTO THE WINTER, FOR EXAMPLE, WE MIGHT, UH, WANT TO PUT ADDITIONAL, UM, A, A HEDGE ON, IF YOU WILL. UM, AND SO THESE ARE NOT TIED TO ANY PARTICULAR UNIT, UM, OR RESOURCE. THEY ARE SIMPLY ENERGY IN THE BILATERAL TRADING MARKET. AND THIS IS NOT A NEW THING, UM, BUT IT IS A WAY... IT'S A DI - IT'S A DIFFERENCE. WE USED TO JUST CALL ANYTHING... WE WOULD, WE WOULD CALCULATE IN THIS PIE CHART, THE ONE THAT SAYS POWER SUPPLY AS A PERCENT OF CONSUMPTION. WE USED TO JUST CALCULATE NUCLEAR, RENEWABLE, AND OTHER, AND OTHER INCLUDED AUSTIN ENERGY, OTHER, AND THEN ANYTHING FROM THE ERCOT MARKET AND ANY OF THE TRADES. AND SO, AGAIN, WE'RE WORKING TO FIGURE OUT HOW DO WE HELP ILLUSTRATE THIS IN THE MOST ACCURATE WAY POSSIBLE? HOW DO WE TAKE INTO ACCOUNT THAT THE ERCOT MARKET MIX IS CHANGING DRASTICALLY? AND SO WE'RE, WE... IT IS REALLY ABOUT HOW WE'RE LABELING IT NOW. OKAY. THANK YOU. ARE YOU ABLE TO HEAR ME NOW? YES. AND, AND YOU'RE NOT BREAKING UP, SO PLEASE PROCEED. WONDERFUL. UM, I, YOU KNOW, I, I GUESS, WHATEVER. I, I'LL, I'LL BE CURIOUS TO SEE, HEAR WHAT YOU, UM, COME UP WITH ON THAT ISSUE OF HOW TO ACCOUNT FOR THE CHANGING ERCOT MARKET MIX. I GUESS I WOULD SAY, YOU KNOW, IF YOU CAN'T PROVE THAT A KILOWATT HOUR IS COMING FROM A RENEWABLE OR OTHER CARBON-FREE SOURCE, THEN I, I DON'T THINK YOU CAN COUNT IT AS SUCH. I CERTAINLY HOPE THAT THE PLAN IS NOT TO JUST TRY TO, UM, YOU KNOW, USE AN ERCOT-WIDE AVERAGE BECAUSE, YOU KNOW, AS, AS YOU OBVIOUSLY KNOW, THAT, THAT NUMBER CAN BE VERY, VERY HIGH OR SOMETIMES A DAY IT CAN BE MUCH LOWER. SO, UM, I'M, I'M SURE YOU ALL ARE, ARE ON THAT, BUT THAT'S JUST MY TWO CENTS ON THAT TOPIC. THANK YOU. YOU'RE WELCOME. SO IT SEEMS LIKE THERE WOULD BE FOUR, FOUR DRIVERS OF BEING SHORT. EITHER IT'S AN ECONOMIC DECISION, YOU CAN SAVE RATE PAYERS, CUSTOMERS MONEY BY GOING INTO THE MARKET VERSUS RUNNING YOUR OWN GENERATORS. YOU CAN HAVE MAYBE INSUFFICIENT CAPACITY BECAUSE UNSCHEDULED MAINTENANCE OR WHATEVER, OR SCHEDULED MAINTENANCE, INSUFFICIENT CAPACITY, MIGHT BE TRANSMISSION CONSTRAINTS WHERE YOU, YOU JUST CAN'T GET IT HERE IN SOME WAY, OR TO REDUCE EMISSIONS, LIKE WITH REACH. SO DO YOU HAVE LIKE... CAN YOU SORT OF EXPAND ON... WE'VE HAD THIS A NUMBER OF, OF QUARTERS AS WHICH ONE'S THE DOMINANT, UH, DRIVERS THAT WE'VE SEEN OF CONTINUOUSLY RUNNING SHORT? I UNDERSTAND THE QUESTION. I DON'T KNOW THAT I CAN GIVE YOU A FULL ANSWER OFF THE CUFF TONIGHT ABOUT WHICH OF THESE DRIVERS ARE CONTRIBUTING TO THIS GENERATION COMPARED TO THIS CONSUMPTION MIX, I MEAN, CONSU- CONSUMPTION NUMBER. UM, BUT I WILL TAKE THAT BACK TO THE TEAM AND, AND SEE IF WE CAN, UM, YOU KNOW, START LOOKING AT IT FROM THAT LENS. YEAH. I MEAN, DO I HAVE THE COMPLETE LIST THERE OR THERE ARE SOME OTHERS THAT I'VE JUST MISSED? I MEAN, I, I... SOMETIMES WE HAVE, UH, LESS GENERATION OUT BECAUSE RESOURCES ARE, ARE ON OUTAGE, WHETHER FORCED OR PLANNED MAINTENANCE, BUT I THINK THAT'S PROBABLY COVERED IN ONE OF THESE. MM-HMM. SOMETIMES RESOURCES ARE GETTING CURTAILED, BUT I THINK THAT'S CONTRIBUTING... I MEAN, TALKING ABOUT CONGESTION, SO I THINK IN GENERAL, WE MIGHT USE SLIGHTLY DIFFERENT WORDS, BUT AGAIN, I'LL, I'LL BRING IT BACK TO THE TEAM AND WE'LL, WE'LL TALK ABOUT IT IN THIS FASHION. YEAH, IF WE COULD HAVE THAT AS A FUTURE ITEM. AND THE CONCERN AGAIN IS WHEN ARE WE GONNA SEE THE BENDING OF THE ARC BACK UP? DO WE HAVE ANY OTHER HANDS UP ONLINE? I DO NOT SEE ANY. ANY QUESTIONS HERE? OKAY. ALL RIGHT. NOW, I KNOW YOU'VE ALREADY... DO YOU WANT ME TO JUST MOVE ON FROM THIS SLIDE OR SHALL I PRESENT THIS SLIDE? GO AHEAD . ALL RIGHT. YES, PLEASE. I'M GONNA START IN THE UPPER LEFT, THESE BLUE BAR CHARTS. HERE YOU SEE THE SYSTEM PEAK DEMAND FOR THE QUARTER, SO Q4, OVER THE LAST FOUR YEARS. YOU'LL SEE THE PEAK THIS QUARTER WAS CLOSE TO, UH, BUT DID NOT SURPASS AUSTIN ENERGY'S HIGHEST SUMMER SYSTEM PEAK, WHICH IS 3110 MEGAWATTS, WHICH WAS IN 2024. THIS, UM, THIS QUARTER, OUR PEAK WAS 3,097 MEGAWATTS, AND THAT [00:40:01] HAPPENED IN JULY. NOW, WE SPENT A LOT OF TIME TALKING ABOUT CONSUMPTION VERSUS GENERATION, BUT IF YOU'LL INDULGE ME, THIS GRAPH, UH, SHOWS ALL OF THIS IN MEGAWATT HOURS, THAT WE DIDN'T SET A NEW PEAK THIS SUMMER. OUR ENERGY CONSUMPTION FOR THE QUARTER WAS UP 10% OVER THIS TIME LAST YEAR. IT WAS 4.9 MILLION MEGAWATT HOURS, AND OUR GENERATION ROSE AS WELL, BUT NOT AS MUCH. THIS GENERATION STACK OF NEARLY 4.3 MILLION MEGAWATT HOURS GENERATE... WAS, UH, 64% CARBON-FREE. YOU'LL NOTICE THERE'S A SHORTFALL BETWEEN WHAT WE GENERATED AND WHAT CUSTOMERS CONSUMED. THE DIFFERENCE IS COVERED THROUGH BILATERAL TRADES AND ERCOT PURCHASES, WITH THE MAJORITY OF THAT BEING ERCOT PURCHASES. BUT, UM, AND YOU CAN SEE THAT SHOWN IN THE YELLOW PIE SLICE IN THE CHART BELOW, WHICH AGAIN, MOVING DOWN INTO THE BOTTOM LEFT, HERE WE'RE LOOKING AT POWER SUPPLY AS A PERCENT OF CONSUMPTION, AND THAT'S 37% RENEWABLES AND THE 19% NUCLEAR, WHICH I TALKED ABOUT ON A PREVIOUS SLIDE. UM, AND THEN FINALLY, OUR BOTTOM LEFT CHART SHOWS POWER GENERATION COST METRICS, WHICH CONTINUE TO INDICATE SIGNIFICANT INVESTMENT IN CARBON-FREE SOURCES AT 70%, WHICH IS THE SUM OF THE NUCLEAR AND RENEWABLE. ALL RIGHT, LET'S SWITCH GEARS TO TALK ABOUT SOME GENERATOR AVAILABILITY. OR TWO SLIDES, PLEASE, DAVID. THANK YOU. SO THIS SLIDE SHOWS GENERATOR COMMERCIAL AVAILABILITY, WHICH IS A MEASURE OF HOW MUCH THE UNIT IS AVAILABLE WHEN IT IS COMMERCIALLY NEEDED, AND AS WE KNOW, COMMERCIALLY NEEDED IS DETERMINED BY THE ERCOT MARKET PRICES IN REAL TIME. THIS Q4 REPORTING PERIOD IS DURING THE HEIGHT OF THE SUMMER SEASON WHEN WE EXPECT THE MOST OUT OF OUR UNITS. COMMERCIAL AVAILABILITY ACTUALS ARE SHOWN IN THE CENTER COLUMN, AND THEY MET OR EXCEEDED THE TARGET, WHICH IS SHOWN IN THE FAR RIGHT, FOR EVERY UNIT, EXCEPT FOR THE DECKER PEAKERS, WHICH AS WE KNOW ARE SHOWING THEIR AGE AND EXPERIENCING MORE DOWNTIME THESE DAYS. ALTHOUGH THESE UNITS ARE CRITICAL DURING TIMES OF HIGH DEMAND AS OUR LAST RESORT LOCAL RESOURCES, FORTUNATELY, WE GOT THROUGH THIS SUMMER DESPITE BEING SLIGHTLY UNDER THE SUMMER AVAILABILITY TARGET. AGAIN, ALL OTHER RESOURCES PERFORMED ABOVE TARGET. NEXT SLIDE, PLEASE. UH, I BELIEVE THAT HEIDI KASPER PROVIDED AN UPDATE ON ELECTRIC VEHICLES LAST MONTH USING THESE SLIDES, SO I'LL MAKE THIS PART RATHER QUICK, BUT HERE YOU SEE THE CHARGING NETWORK UPTIME AND THE TRENDS OVER TIME. AND ON THE NEXT SLIDE, YOU'LL SEE THAT THE PLUGIN EVERYWHERE NETWORK CONTINUES TO HAVE HIGH USAGE, AVERAGING OVER 30,000 CHARGING SESSIONS PER MONTH. AND THEN ONE MORE, DAVID, PLEASE. AND THEN HERE WE'RE TALKING ABOUT OUR DISTRIBUTION RELIABILITY METRICS SHOWN HERE. THE BAR CHARTS ON THE TOP SHOW THAT WE CONTINUE TO PERFORM ABOUT TWO TIMES BETTER THAN THE TEXAS AVERAGE IN SOME OF THESE METRICS. OUR TREND LINES ARE SHOWING THAT THE OUTAGE FREQUENCY HAS GONE DOWN, WHICH IS A GOOD THING, AND OUTAGE, AVERAGE DURATION HAS REMAINED FAIRLY STABLE. THIS MEANS THAT ACROSS OUR SYSTEM, WE'RE HAVING FEWER OUTAGES, AND THEY'RE TAKING ABOUT THE SAME AMOUNT OF TIME TO RESTORE. AND THESE TWO METRICS, WHICH ARE SHOWN ON THE LEFT AND IN THE CENTER, THEY FEED INTO THE METRIC THAT'S SHOWN ON THE RIGHT, WHICH SHOWS THE AVERAGE MINUTE TO RESTORE SERVICE TO AFFECTED CUSTOMERS. THIS QUARTER ON AVERAGE, THOSE WHO HAVE SEEN AN OUTAGE HAVE BEEN RESTORED IN 87 MINUTES ON AVERAGE. OUR TEAMS ARE DOING THE YEAR IN REVIEW FOR THE ELECTRIC SYSTEM RESILIENCY PLAN YEAR ONE COMPLETION METRICS, AND I'LL INCLUDE SOME INSIGHT INTO THAT INTO A FUTURE REPORT. AND FINALLY, NEXT SLIDE. UM, WE THOUGH WE WOULD ADD IN A FEW SLIDES, UM, ON THE BASE POWER AGREEMENT AND CURRENT STATUS, BECAUSE I KNOW SEVERAL OF YOU HAVE ASKED QUESTIONS ABOUT THAT. AND SO JUST AS A REMINDER, WE ENTERED INTO A TOLLING AGREEMENT WITH BASE POWER, UH, WHICH ADDS DISTRIBUTED BATTERIES TO OUR PORTFOLIO IN A WHOLE NEW WAY. UH, THIS WAS SOURCED FROM A REQUEST FOR PROPOSALS THAT WAS ISSUED IN 2025. THE AGREEMENT WAS APPROVED BY CITY COUNCIL IN APRIL OF 2026, AND IT IS A WHOLESALE BATTERY STORAGE AGREEMENT FOR UP TO 40 MEGAWATTS, UH, A 10-YEAR AGREEMENT THAT PROVIDES, UH, MULTIPLE LOCATIONS, UH, DISTRIBUTED CONNECTED BATTERIES VERSUS A LARGE SINGLE SITE WITH... THAT IS CONNECTED AT TRANSMISSION LEVEL. UM, COLLECTIVELY, THESE RESOURCES, UH, WILL BE OPERATED TO PROVIDE WHOLESALE COST RISK MITIGATION TO THE AUSTIN ENERGY LOAD ZONE, AND THEY DO CONTRIBUTE TO THE 125 MEGAWATT LOCAL BATTERY STORAGE GOAL IN THE GEN PLAN. IN TERMS OF OUR CURRENT STATUS, NEXT SLIDE, PLEASE. OH, THANKS. CAN I ASK A QUESTION ABOUT BA - OR GO AHEAD AFTER... I'LL WAIT TILL YOU FINISH. UH, SO THE INITIAL BATTERIES WERE INSTALLED THIS SUMMER, UH, IN JULY OF 2026, AND THE PORTFOLIO WILL CONTINUE TO RAMP UP TO THE CONTRACTUAL 40 MEGAWATTS OVER THE NEXT, UH, OVER 18 MONTHS. AS OF OCTOBER, THERE WERE APPROXIMATELY [00:45:01] 185 CUSTOMER INSTALLATIONS FOR A TOTAL OF 3.7 MEGAWATTS. AND AGAIN, THIS IS A PROGRAM WHERE AUSTIN ENERGY CUSTOMERS CONTRACT DIRECTLY WITH BASE FOR A HOUSEHOLD SYSTEM FOR RESILIENCY PURPOSES. THE PARTICIPATING CUSTOMERS HAVE A PORTION OF THAT BATTERY, UH, WHICH IS RESERVED FOR THEIR USE IF AN OUTAGE WERE TO OCCUR AT THEIR PREMISE, AND AUSTIN ENERGY IS PAYING FOR AND HAS FULL USE OF THE OTHER PORTION OF THE BATTERY. TEAMS ACROSS AUSTIN ENERGY ARE WORKING TO ENABLE THIS NEW RESOURCE AS THE LATEST IN OUR PORTFOLIO, AND THERE HAVE BEEN GOOD LEARNINGS THUS FAR. WE'LL SEE HOW IT GOES AS WE CONTINUE TO OPERATIONALIZE THESE UNITS. QUESTIONS, AL? UH, I'M REALLY EXCITED ABOUT THIS BECAUSE IT GIVES US ANOTHER TOOL IN OUR TOOLBOX. UH, IT'S ALSO SUCH A STREAMLINED PRODUCT. IT'S KIND OF LIKE ONE THING, UH, AND EASY TO INSTALL. I'M WONDERING IF WE'RE LEARNING FROM IT, UH, HOW, HOW BETTER... IT STILL HAS TO GO THROUGH PERMITTING, INSPECTION, I, ALL THAT, I SUPPOSE. SO ARE, ARE WE LEARNING STEPS THROUGH THIS THAT WE CAN APPLY TO SIMPLIFYING OTHER SOLAR INSTALLATIONS? THAT'S PROBABLY A QUESTION FOR, UH, RICHARD GENESEE'S TEAM. I KNOW THAT WE'VE BEEN WORKING CLOSELY WITH THEM TO, UM, COORDINATE AND HOW DO WE, YOU KNOW, HOW DO WE STREAMLINE THE DEPLOYMENT OF THESE RESOURCES? UH-HUH. AND I DO THINK THAT THERE HAVE BEEN SOME LEARNINGS, UM, THAT, YOU KNOW, HAVE BEEN APPLIED, YOU KNOW, THAT CAN BE APPLIED MORE BROADLY, SO. WELL, I GUESS I'M ASSUMING THAT THIS INSTALLS PRETTY QUICKLY AND WITHOUT A LOT OF BELLS AND WHISTLES, IS THAT... THAT IS MY UNDERSTANDING. ONE THING THAT I WILL SAY IS THAT, UM, THE... WHEN YOU'RE DEALING WITH, UM, SOLAR AND, UH, BATTERY STORAGE, OFTEN A HOMEOWNER'S HIRING A THIRD PARTY, UH, ELECTRICIAN TO DO SOME OF THAT WORK OR TO COORDINATE WITH THE, UM, INSTALLER THERE. AND SO THERE'S A LOT OF DIFFERENT PARTIES, UM, THAT YOU MIGHT BE WORKING WITH. IN THIS CASE, ALL OF THE, UM, INSTALLERS ARE, UH, BASE EMPLOYEES. MM-HMM. AND SO THERE'S A VERY STANDARDIZED METHOD, UM, BY WHICH THEY DEPLOY THESE RESOURCES. AND SO WE'VE HAD OUR INSPECTORS AND, AND FOLKS COORDINATE WITH THEM TO MAKE SURE THAT THERE'S, YOU KNOW, NO SURPRISES AS WE GO THROUGH. OKAY. OH. I MEAN, THERE WERE QUES... THERE WERE QUESTIONS... UH, CYRUS, ACTUALLY, WHY DON'T YOU GO FIRST? YEAH, SORRY. I, I'M HAPPY TO GO AFTER IF SOMEONE RAISED THEIR HAND FIRST. BUT, UM, QUICK QUESTION, LISA. I KNOW THAT BASE POWER AND WHERE THEY'RE OPERATING IN OTHER PARTS OF THE MARKET, UH, HAVE BEEN USING THE BATTERIES AS PART OF THE AGGREGATED DISTRIBUTED ENERGY RESOURCE PILOT THAT ERCOT'S RUNNING. UM, ARE THESE BATTERIES WITHIN AUSTIN ENERGY BEING USED IN THAT WAY? I THINK THE ANSWER IS NO. AND IF NO, IS THAT SOMETHING THAT AUSTIN ENERGY HAS CONSIDERED, UH, PARTICIPATING IN THAT PROGRAM? WOULD THAT BE SOMETHING THAT WOULD BE HELPFUL FOR AUSTIN ENERGY CUSTOMERS? SO IT'S, IT'S A GOOD QUESTION, AND ONE THAT WE'RE CONSIDERING, UM, CAREFULLY IS HOW DO THESE RESOURCES AGGREGATE UP AND DO WE... HOW DO WE BEST USE THEM IN THE MARKET? UM, AND SO, UH, RIGHT NOW, THERE'S NOT SUFFICIENT QUANTITY OF THEM, ALTHOUGH YOU CAN SEE THAT, UM, IN JUST A FEW MONTHS, THEY'RE, YOU KNOW, NEAR FOUR MEGAWATTS INSTALLED. AND SO, UM, IT, YOU KNOW, THE, THE TEAM WILL CONTINUE TO, TO DETERMINE, UM, HOW THEY SHOULD BE AGGREGATED AND USED IN THE MARKET, UM, WHETHER IT SHOULD BE FOR, UH, TRYING TO REDUCE PEAKS OR IF IT'S FOR ANCILLARY SERVICES OR, OR WHATNOT. SO TO BE DETERMINED. SO YOU COULD, YOU COULD TRY TO GET THEM, UM, AUTHORIZED FOR USE IN THAT WAY, BUT WE'RE NOT THERE YET, BASICALLY? CORRECT. OKAY. THANKS. THANK YOU. SO THIS IS MOSTLY STILL FOR PEAK LOAD REDUCTION? THIS IS FOR DISPATCHABLE AT ANY PARTICULAR POINT IN TIME, BUT, UM, IT'S, IT'S NOT, UM, UH, I- IT'S NOT ESTABLISHED AS A, AS AN ERCOT RESOURCE YET, AN AGGREGATED RESOURCE THAT IS BID INTO THE ERCOT MARKET. BUT AS FAR AS THE APPLICATION THAT'S MOST BENEFICIAL TO AE, IS THAT PEAK LOAD REDUCTION OR... UH, IT'S, IT'S WAY TOO EARLY TO TELL, BUT I WOULD IMAGINE... PRICE, BUT WE, WE ARE NOT LIMITED TO DEPLOYING THEM JUST AT PEAK LOAD REDUCTION, UM, BUT, YOU KNOW, ENERGY ARBITRAGE, PRICE SPIKES, ET CETERA, ET CETERA. OKAY. THE CLASSIC THINGS. AND THERE WERE SOME QUESTIONS THAT WERE, UM... WE APPRECIATE THE ANSWER. UH, VICE CHAIR BRADEN HAD ASKED SOME QUESTIONS TO HELP CLARIFY SOME OF THE PROGRAM, AND I HAVEN'T HAD A CHANCE TO GO BACK AND LOOK AT THE BASE WEBSITE AND THE AE WEBSITE THAT TALKS ABOUT BASE, BUT THERE WERE SOME CLARIFYING, UH, STATEMENTS THAT AE PROVIDED, AND WE JUST WANNA MAKE SURE THOSE EVENTUALLY POP UP. SO THERE WERE CONCERNS THAT THE CUSTOMERS MIGHT BE PAYING FOR THE ENERGY. THE RESPONSE WAS, "THESE ARE STORAGE RESOURCES IN FRONT OF THE METER. IT DOES NOT AFFECT CUSTOMERS' [00:50:01] BILLS. THEY DON'T PAY FOR IT. THEY DON'T PAY FOR THE ROUND TRIP LOSSES, ET CETERA." SO HAS SOMEONE UPDATED SOMEBODY'S WEBSITE TO REFLECT THE ANSWERS THAT WE SAW IN AN EMAIL THREAD OVER THE PAST MONTH? DO NOT KNOW THE ANSWER TO THAT QUESTION, BUT I WILL CHECK WITH THE TEAM. LIKE YOUR EMAIL? I'M NOT SURE, BUT HAVING IT BE IN FRONT OF THE METER SORT OF CHANGED THE WHOLE EQUATION. SO YOUR OPERATION OF A DAY-TO-DAY IS IRRELEVANT TO THE CUSTOMER. CORRECT. AND WHEN THE CUSTOMER DOES DRAW POWER FROM IT IN AN OUTAGE, IT WILL GO IN THROUGH THEIR METER, WHATEVER THEY USE, SO THAT'S THEIR ONLY IMPACT TO THE CUSTOMER. SO I HAD JUST NOT UNDERSTOOD IN THE BEGINNING THAT IT WAS IN FRONT OF THE METER. MM-HMM. WHAT HELPED. THANK YOU. IF SOMEONE COULD CHECK TO MAKE SURE THAT THE CLARIFYING STATEMENTS THAT Y'ALL MADE ARE SORT OF OUT THERE IN THE PUBLIC, UH, BECAUSE I'VE HAD QUESTIONS FROM DIFFERENT PEOPLE ABOUT THAT. ALL RIGHT. OKAY. HOW... UH, DO YOU HAVE A SENSE OF, OF HOW WELL AT THIS SCALE IT'S PERFORMING FOR YOU? I MEAN, IS IT PERFORMING TO YOUR EXPECTATIONS AT THE SIZE THAT IT IS NOW? I MEAN, IT, IT'S STILL VERY SMALL TO BE ON THE, YOU KNOW, REAL-TIME DESK, IF YOU WILL, AS... BUT, BUT YES, AS FAR AS I CAN TELL, SO FAR, IT IS PERFORMING, UM, AS EXPECTED. OKAY. IS SOMEONE TRYING TO ASK A QUESTION ONLINE? YEAH, LISA, LISA, YOU, UH, YOU, YOU SAID YOU SOURCED THIS THROUGH AN RFP, SO YOU NOW HAVE AN IDEA OF THE ECONOMICS, BOTH FROM THE BIDDERS AS WELL AS WHAT THIS CAPACITY'S WORTH TO AUSTIN ENERGY. HAVE YOU CONSIDERED OPENING THIS UP AND, AND MAKING IT KIND OF PART OF, LIKE, A STANDARD OFFER FOR STORAGE IN THE SAME WAY WE HAVE, YOU KNOW, THE STANDARD OFFER FOR SOLAR? IT SEEMS LIKE THIS WOULD BE... SOMETHING LIKE THIS WOULD BE A NEXT STEP THERE. I, I, I'LL HAVE TO, UM, CONSULT WITH THE TEAM A LITTLE BIT MORE ON THAT. I, UH, I THOUGH YOU WERE GONNA TAKE ME IN A DIFFERENT, UH, PATH TO SAY THAT, YES, WE DID SOURCE THIS THROUGH, UH, A COMPETITIVE SOLICITATION, AND, UM, WE DO ANTICIPATE THAT WE'LL HAVE ANOTHER COMPETITIVE SOLICITATION FOR BATTERIES, UM, COMING OUT AT THE START OF, OF NEXT YEAR, UM, TO SEE IF WE CAN, UH, YOU KNOW, GROW, UH, THIS TYPE OF RESOURCE, UM, OR ANY OTHER BATTERIES FOR THAT MATTER, UM, HERE LOCALLY. UM, WHETHER OR NOT IT BECOMES, UH, YOU KNOW, A STANDARD, UH, OFFERING KIND OF LIKE YOU'RE TALKING ABOUT IS, UH, SOMETHING WE'LL HAVE TO DISCUSS FURTHER. ANY OTHER QUES - O- ON... THERE IS THE, THE HOME BATTERY PROGRAM THAT'S, THAT'S UP AND RUNNING, BUT I'M, I'M JUST WONDERING IF COMMISSIONER BLACKBURN IS ASKING ABOUT A COMMERCIAL SCALE KIND OF STANDARD OFFER BATTERY. IS THAT WHAT YOU'RE LOOKING FOR? WELL, I, I DON'T THINK WE HAVE A STANDARD OFFER FOR STORAGE AT THE RESIDENTIAL LEVEL. IT'S, IT'S SOLAR, WHERE AUS ENERGY HAS SAID, "WE WILL PAY THIS PPA," YOU KNOW, I- IT'S A FLOATING PRICE, BUT THEY'LL SAY, "WE, WE WILL PAY THIS PRICE FOR FRONT OF THE METER SOLAR SYSTEMS." UM, IT SEEMS LIKE THE NEXT STEP HERE IS TO ADD STORAGE TO THAT. I MEAN, THE PROBLEM WITH THE STANDARD OFFER FOR SOLAR IS THAT IT'S A FLOATING PRICE BASED ON THE VALUE OF SOLAR AS IT'S PRODUCED IN THE MARKET, AND SO AS YOU GET MORE SOLAR, THE VALUE OF, YOU KNOW, OF THAT GENERATION GOES DOWN BECAUSE, YOU KNOW, WE'RE NOW SATURATED IN THE KIND OF REAL PROBLEM IS A COUPLE OF HOURS AFTER THE SUN SETS, RIGHT? S- STORAGE IS, IS PERFECT FOR TAKING ADVANTAGE OF THAT, RIGHT? SO IT'S, IT'S KIND OF THE, YOU KNOW, THIS SEEMS LIKE TO ME TO BE THE NEXT PHASE IN, IN, IN THAT STANDARD OFFER PROGRAM. SO THE, THE BATTERY DR PROGRAM, THAT'S BEHIND THE METER, AND DOESN'T THAT HAVE A STANDARD PRICE, $75 PER KILOWATT PER YEAR? RIGHT. I- I- IS THAT TRUE? I - YEAH. YES. YEAH. YES. IT, IT'S, IT'S KIND OF MODEST, BUT IT, IT'S SOMETHING, AND IT'S NOT, IT'S ONLY GONNA BE CYCLED UP TO 40 TIMES A YEAR. YES. AND - SO THIS BASE BATTERY COULD BE CYCLED EVERY DAY, I IMAGINE. SO YOU COULD GET A LOT MORE USE OUT OF IT, AND MAYBE THE HOME PROGRAM COULD BE EXPANDED IN THE FUTURE. BUT I GUESS THE QUESTION THAT SOUNDS INTERESTING IS HOW COULD THAT APPLY TO A BIGGER BATTERY IN A COMMERCIAL SPACE, ALONG WITH THE COMMERCIAL STANDARD OFFER? MAYBE THAT IS, IS A NEW DIRECTION THAT YOU'RE LOOKING AT. UM, SO COUPLE OF THOUGHTS. SO THE, UM, BATTERY DEMAND RESPONSE PILOT PROGRAM FOR CUSTOMERS WHO OWN THEIR OWN [00:55:01] BATTERIES AND WANT TO PARTICIPATE IN THAT, THERE'S UP TO A $500, UM, UPFRONT INCENTIVE, AND THEN THERE IS A PER KILOWATT, UH, YOU KNOW, BASED ON HOW MUCH YOU SHOW UP WHEN WE CALL UPON YOU FOR DEMAND RESPONSE, AND I DO BELIEVE IT'S $75 PER KILOWATT, UM, PER, YOU KNOW, YEAR C- C- CYCLE. AND YOU ARE CORRECT, THERE IS A LIMIT ON HOW MUCH CYCLING CAN BE DONE. UM, PART OF THE WHOLE... ONE OF THE TERMS OF THE WHOLESALE AGREEMENT IS CYCLES, UM, AND, YOU KNOW, THAT'S A COMPETITIVE MATTERS TERM, BUT THAT PLAYS INTO THE ECONOMICS HERE, AND SO THERE IS MORE FLEXIBILITY. UM, IT'S ALSO NOT LIMITED TO, YOU KNOW, AS, AS I WAS MENTIONING EARLIER, THE DEMAND RESPONSE TIMEFRAME. SO, UM, YES, TWO DIFFERENT, UM, TYPES OF, OF RESOURCES, UM, THAT KIND OF STACK TO PROVIDE VARIOUS VALUES, AND THERE'S, YOU KNOW, MORE ITERATIONS OF THOSE TYPES OF PROGRAMS, UM, AND AGREEMENTS TO CONSIDER AS WE MOVE FORWARD. SO I DO THINK THIS WILL CONTINUE TO EVOLVE AND GROW AS WE GET SOME LEARNING, SOME EXPERIENCE UNDER OUR BELT, UM, AND, AND SEE HOW TO BEST MAXIMIZE THE OPERATIONALIZATION OF, UH, BATTERY STORAGE, ESPECIALLY DISTRIBUTED BATTERY STORAGE. GABBY, YOU HAVE YOUR HAND UP. YEAH, I JUST WANTED TO SHARE A LITTLE, UM, KIND OF PIECE OF ADVICE WE GOT IN THE, UM, THE LONG DURATION, UH, STORAGE WORKING GROUP, JUST BECAUSE YOU MENTIONED THE, THAT RFP THAT WAS GOING OUT, LISA, AND YOU REFERRED TO IT AS A BATTERY RFP, AND, UM, I, I, I WOULDN'T HAVE KNOWN THIS BEFORE THIS MEETING, BUT APPARENTLY SOME TYPES OF ENERGY STORAGE THAT WE MIGHT KIND OF THINK OF AS BATTERIES, LIKE, THEY, THEY DO NOT THINK OF THEMSELVES AS BATTERIES, SO, EXCUSE ME, YOU MIGHT CONSIDER JUST BROADENING THE TERM AND SAYING ENERGY STORAGE, UM, JUST TO MAKE SURE THAT FOLKS DON'T CUT THEMSELVES OUT, DEPENDING ON WHAT TYPE OF TECHNOLOGY THEY'RE USING. FAIR POINT. UM, YES. I, I WAS, UH, REFERRING TO THAT, UH, A LITTLE BIT TOO LOOSELY. THANK YOU. I THINK THAT'S MY FINAL SLIDE. UH, I HAVE A QUESTION. PLEASE. I HAVE A QUESTION ABOUT, UM, THE DISTRIBUTION SLIDE, RELIAB - UH, RELIABILITY, UH, SLIDE. COULD YOU GO BACK TO SLIDE 13, DAVID? SORRY, PLEASE GO BACK TWO MORE. MY APOLOGIES. I'M IN A DIFFERENT VERSION OF THAT. THANK YOU. YES, SIR. SO IS, UM, DO WE KNOW WHAT CAUSED THAT LITTLE POP-UP IN KD FOR THE FOURTH QUA, UH, QUARTER, QUARTER? YEAH, SO I TOLD YOU I WASN'T GONNA DO MATH HERE UP ON THE, ON THE DAIS, BUT ESSENTIALLY, UM, KD IS A REPRESENTATION OF HOW MUCH, FOR YOUR CUSTOMERS WHO ARE AFFECTED, UM, WHAT IS THEIR DURATION. AND WHEN YOU LOOK AT, UM, THE AVERAGES ACROSS OUR SYSTEM, WHAT HAPPENED WAS OUR DURATION WAS THE SAME, BUT ON AVERAGE, WE HAD FEWER OUTAGES. SO THE OUTAGES THAT WE DID HAVE THAT WERE EXPERIENCED BY CUSTOMERS, UH, THEY FELT IT FOR A LITTLE BIT LONGER. UM, AND SO IT, IT ESSENTIALLY, UH, YOU KNOW, IT COULD BE BASED OFF OF THE TYPES OF, UM, OF, UH, CAUSES FOR THE OUTAGES. SO THIS, THIS IS A, MORE OF A POSSIBLE ANSWER TO YOUR QUESTION, UM, AND IT LOOKS LIKE, YOU KNOW, A SIGNIFICANT PORTION OF THIS, ABOUT 26% OF THE OUTAGES, UM, THAT CUSTOMERS EXPERIENCED WERE SCHEDULED, AND SO IT COULD BE THAT IT JUST TOOK A LITTLE BIT LONGER THAN PREVIOUS, UM, TO, TO REPAIR SOME OF THAT WORK, UM, YOU KNOW, TO DO THE SCHEDULED WORK THAT WAS DONE. UM, AND ABOUT, UM... YEAH. SO WE DIDN'T SEE QUITE AS MANY, UM, ANIMAL, LIKE, SQUIRREL CONTACTS AS WE HAVE IN THE PAST, AND A LOT OF TIMES THOSE WILL JUST BLOW A FUSE AND THEN YOU GO REPLACE THEM, SO IT'S A REALLY QUICK RESPONSE. SO A LOT OF THIS WAS EITHER, UM, UH, PLANNED WORK OR IT WAS, UM, YOU KNOW, REPAIRING, REPLACING A TRANSFORMER OR PICKING UP DOWN WIRE, UM, OR SOMETIMES, UM, HAVING TO, TO TRIM, UH, IF VEGETATION CAME INTO CONTACT. SO SOME OF THOSE TYPES OF THINGS TAKE A LITTLE BIT LONGER THAN OTHERS, UM, AND SO I'D HAVE TO COMPARE, YOU KNOW, QUARTER OVER QUARTER WHAT THE CAUSES WERE THIS TIME FROM LAST TIME, BUT IN GENERAL, YOU CAN ALSO SEE THAT BECAUSE THERE'S A PRETTY SIGNIFICANT DROP IN THE FREQUENCY OF THE OUTAGES, UM, WHEN YOU SAY THOSE, THE, THOSE THAT DID EXPERIENCE AN OUTAGE, UH, EXPERIENCED IT FOR A LITTLE BIT LONGER THAN PREVIOUS. THANK YOU. THANK YOU. ALL RIGHT. I THINK - THAT'S, THAT'S STILL WAY BETTER THAN THE, UH... STILL WAY BETTER THAN THE TEXAS AVERAGE. I HOPE THAT, UH, GOVERNOR HINOJOSA WILL APPRECIATE THAT [01:00:01] WE DO TOO. ALL RIGHT. CHAIR, THAT'S, UH, I'VE COMPLETED MY SLIDES. ANY OTHER QUESTIONS? ALL RIGHT. THANK YOU. THANK YOU. [14. Staff briefing on the Fourth Quarter Financial Report by Stephanie Koudelka, Chief Financial Officer.] NEXT, WE HAVE STAFF BRIEFING ON THE FOURTH QUARTER FINANCIALS. GOOD EVENING, COMMISSIONERS. I'M STEPHANIE KADELKA. I'M AUSTIN ENERGY'S CHIEF FINANCIAL OFFICER, AND I'M PRESENTING, LIKE LISA, ON OUR FOURTH QUARTER RESULTS FOR FISCAL 26. BETTER? UM, THAT IS FOR THE PERIOD ENDED SEPTEMBER, AND WE ARE STILL FINALIZING OUR BOOKS, SO THESE ARE VERY PRELIMINARY RESULTS AS OF THIS MONTH. WE HAVE A STANDARD AGENDA FOR THE QUARTERLY FINANCIAL REPORT, ALTHOUGH I DID ADD TWO SLIDES AT THE END OF THE PRESENTATION TO TALK TO YOU ABOUT THE RESULTS FROM THE EIA DATA FOR CALENDAR YEAR 25 THAT WAS RECENTLY RES - RELEASED A FEW WEEKS AGO. SO WE'LL TALK ABOUT HOW AUSTIN ENERGY'S, UM, METRICS KIND OF STACK, STACK UP AGAINST THE ERCOP MARKET AVERAGE. NEXT SLIDE. FOR EXECUTIVE SUMMARY, ON A BUDGET BASIS, THE UTILITY, UM, SAW A LOSS OF $8 MILLION FOR THE FISCAL YEAR. THAT IS COMPARED TO A $43 MILLION BUDGETED DEFICIENCY. SO BETTER THAN EXPECTED, BUT STILL A LOSS. UM, WE DID HAVE VERY HOT WEATHER, ESPECIALLY IN SEPTEMBER, WHICH DROVE UP OUR BASE REVENUES. UM, CERTAINLY DON'T WANNA RELY ON MORE CONSUMPTION AND REVENUES FROM EXTREMELY HOT WEATHER, BUT THAT DID DRIVE, UH, BETTER RESULTS THAN EXPECTED, UM, BUT STILL AT A LOSS. SO WE STILL ARE NEEDING TO FOCUS ON A, UM, ADEQUATE RECOVERY OF OUR COST, UM, WITHOUT EXTREME WEATHER. FOR OUR BOND RATING, WE ARE AT A MINUS RATING PER STANDARD AND POORS. NO CHANGE THERE. UM, THE CHANGE COMES FROM THAT WE ARE ENTERING THE BOND MARKET THIS QUARTER. WE DID MEET WITH ALL THREE RATING AGENCIES. UM, OUR RATING WAS AFFIRMED BY ALL THREE AGENCIES. WE ARE STILL UNDER THE TARGET. THE UTILITY IS LOOKING TO BE A AA RATED UTILITY. WANNA, UH, SPEAK TO YOU ABOUT A FEW ITEMS THAT THEY MENTIONED IN THEIR REPORTS. UM, THEY MENTIONED THAT, UM, SOME OF THE DRIVERS FOR OUR RATING WERE NOTING TIMELY COS- COST RECOVERY NEEDED THROUGH FLEXIBILITY AND IMPROVING OUR FINANCIAL METRICS. UM, AND SOME THINGS WE SHOULD LOOK OUT FOR THAT COULD DRIVE NEGATIVE OR DOWNWARD PRESSURE IS OUR INABILITY AND FAILURE TO IMPLEMENT TIMELY AND SUFFICIENT RATE INCREASES. FOR FINANCIAL POLICIES, MOVING TO THE BOTTOM LEFT, UM, NO CHANGE THERE. WE'RE STILL IN SUBSTANTIAL COMPLIANCE AS OF THE END OF THE YEAR. UM, WE DO HAVE SOME INDIVIDUAL RESERVES THAT DO NOT MEET TARGETS, BUT WE'RE SUBSTANTIALLY COMPLIANT. FOR OUR DAYS CASH ON HAND, WE ARE AT 187 DAYS AS OF THE END OF THE QUARTER. UM, THAT IS DOWN FROM THE BEGINNING OF THE FISCAL YEAR BY ABOUT EIGHT DAYS. WE STARTED THE YEAR WITH 195 DAYS CASH ON HAND. SO QUICK QUESTION ON THAT. SO WITH A MINUS VERSUS AA, WHAT'S THE, UH, EXTRA OR THE, THE SPREAD BETWEEN WHAT YOU'D GET AS FAR AS INTEREST RATES WHEN YOU'RE FLOATING A BOND? LET'S SAY ONE POINT IN TIME, BECAUSE YOU CAN'T TAKE SNAPSHOTS ACROSS TIME AND HAVE THEM RELEVANT, BUT SAY RIGHT NOW YOU GO OUT AND FLOAT BONDS AND IT'S AA MINUS. HOW MUCH WOULD YOU PAY LESS AS FAR AS INTEREST RATES IF WE WERE AA? I'D HAVE TO GET BACK TO YOU ON SOME SPECIFICS AND KIND OF WHAT THAT LOOKS LIKE IN OUR LAST COUPLE OF BOND ISSUANCES. OBVIOUSLY, THE MARKET RIGHT NOW IS A LITTLE BIT TIGHT, SO RATES ARE A LITTLE BIT HIGHER THAN TYPICAL. UM, I DON'T THINK IT'S A, IT'S A, IT'S A MATERIAL DIFFERENCE, BUT IT WOULD BE A COST INCREASE TO OUR CUSTOMERS OR DECREASE DEPENDING ON OUR RATING. AA MINUS IS STILL INVESTMENT GRADE, SO IT IS A GOOD RATING, BUT CERTAINLY YOU CAN MARKET YOUR BONDS BETTER IF YOU'RE AT AA, WHICH WOULD DRIVE THE PRICING TO BE BETTER FOR OUR CUSTOMERS. I MEAN, CAN YOU GUESS, IS IT LESS THAN 0.1%? I, I, I'D WANNA GIVE YOU A GOOD FIGURE, SO I'D HAVE TO GO BACK AND TAKE A LOOK AT WHAT THAT DIFFERENCE WOULD BE HAD WE BEEN RATED DIFFERENTLY. THANK YOU. NEXT SLIDE. I DID JUST TOUCH ON OUR DAYS CASH ON HAND. THAT 187 DAYS IS AGAINST A TARGET OF 200 DAYS, SO WE ARE UNDER THAT TARGET AS OF THE END OF THE YEAR. OUR DEBT SERVICE COVERAGE IS AT 2.3 TIMES VERSUS OUR TARGET OF 2.5. UM, THE PRESSURES THAT WE'RE SEEING ON OUR COST ARE REALLY SHOWING UP HERE. THIS IS A METRIC THAT WE'RE WATCHING VERY CLOSELY AS THE UTILITY IS LOOKING TO MAKE, UM, SYSTEM INVESTMENTS OVER THE FIVE-YEAR TERM. UM, INVESTORS NEED TO SEE THAT WE CAN [01:05:01] PAY THOSE BONDS BACK WITH GOOD, UM, REVENUE. UM, SO SOMETHING THAT WE'RE DEFINITELY WATCHING. UM, AND THIS IS COVERAGE EVEN WITH THAT VERY WARM WEATHER THAT WE EXPERIENCED THIS QUARTER. FOR OPERATING MARGIN, THAT'S A SIMILAR INDICATOR OF DEBT SERVICE COVERAGE THAT COSTS ARE PUTTING PRESSURE ON THE UTILITY. WE'RE AT 9% VERSUS OUR TARGET OF 10. AND FINALLY, OUR CAPITALIZATION, THAT HASN'T MOVED MUCH, BUT IT, IT IS LIKELY TO OVER THE NEAR TERM. WE HAVE A LOT OF SYSTEM INVESTMENTS COMING IN OUR CAPITAL PLAN, AND SO WE'LL, WE'LL WATCH THAT CLOSELY AS WELL. AS THAT DRIVES UP, IT REALLY IS AN INDICATOR THAT THE UTILITY NEEDS TO HAVE ADEQUATE CASH ON HAND. NEXT SLIDE. THIS SLIDE IS A FULL YEAR, VERY PRELIMINARY LOOK AT OUR FUND SUMMARY, WHICH IS OUR BUDGET BASIS OF ACCOUNTING. AGAIN, JUST BACK TO THE EXECUTIVE SUMMARY, WE BUDGETED A DEFICIENCY OF 43 MILLION FOR THE FISCAL YEAR. WE'RE STILL AT A LOSS. WE ENDED UP WITH AN $8 MILLION DEFICIT. THOSE RECORD BREAKING TEMPERATURES IN THE LAST QUARTER, UM, TOTALED ABOUT 40 MILLION. WE WERE ABOUT 4% OVER IN USAGE, UM, WHICH TRANSLATED TO THAT $40 MILLION. UM, WE HAD ABOUT 150 MORE COOLING DAYS, SO VERY EXTREME HEAT. WE ARE ALL FAMILIAR WITH WHAT IT FELT LIKE IN SEPTEMBER. UM, THAT REALLY HELPED OUR, OUR RESULTS, UM, TO BE BETTER THAN EXPECTED, BUT, UM, IT, IT'S AGAINST A, A PROJECTED LOSS, SO WE'RE STILL IN A LOSS POSITION FOR THE FISCAL YEAR. NEXT SLIDE. THIS IS THE TYPICAL SLIDE THAT WE SHOW YOU JUST HOW OUR POWER SUPPLY ADJUSTMENT RATE IS PERFORMING. THE BARS ARE SHOWING YOU COST VERSUS OUR BUDGETED COSTS. WE DID END THE YEAR ABOUT 3% UNDER ON POWER SUPPLIES, SO THAT'S REALLY GOOD NEWS. BACK TO SOME OF THE REPORTING LISA WAS LETTING YOU KNOW ABOUT OUR, UM, DIFFERENT PURCHASES FROM THE MARKET AS WELL AS OUR GENERATION REVENUE, KEEPING OUR COSTS LOW FOR OUR CUSTOMERS. UM, THE BLACK LINE THAT HOVERS ABOVE IS, UM, RETAIL REVENUE, SO IT REFLECTS AMOUNTS BILLED TO OUR CUSTOMERS AND MOVES MOSTLY WITH WEATHER, WEATHER PATTERNS AND USAGE PATTERNS FROM OUR CUSTOMERS. NEXT SLIDE. I'LL TOUCH ON OUR CAPITAL IMPROVEMENT PLAN. UM, FOR THE FISCAL YEAR, WE BUDGETED 422 MILLION. UM, WE SPENT ABOUT 90% OR 377 MILLION THROUGH THE FISCAL YEAR. UM, WE'RE UNDER, NOT BECAUSE PROJECTS AREN'T COMING TO FRUITION, BUT MOSTLY DUE TO TIMING IN RELATION TO SOME TRANSMISSION PROJECTS THAT DROVE A LOT OF THE VARIANCE. AND I'M SHOWING YOU IN THE PIE CHART HOW WE PAID FOR THE ASSETS, UM, THAT ARE DEMONSTRATED IN THE BUDGET. UM, WE FUNDED CAPITAL WITH AROUND 45% DEBT, WHICH IS, UM, IN LINE WITH THE UTILITY STRATEGY OF 50% DEBT FUNDING FOR THE FISCAL YEAR. THE CASH FUNDING IS 55%, WHICH INCLUDES CONTRIBUTIONS FROM OUR CUSTOMERS. UM, THIS IS VERY SPECIFIC AT THE PROJECT LEVEL. SO IF YOU HAVE HIGHER CAPITAL COSTS FOR A SPECIFIC CASH, UH, CONTRIBUTION PROJECT, THAT WILL BE DRIVEN UP, AND THAT IS THE CASE FOR THIS FISCAL YEAR. NEXT SLIDE. SO THIS SLIDE, WE'RE SHOWING YOU SOME STATISTICS ON OUR CUSTOMER GROWTH. I'LL START WITH OUR YEAR-OVER-YEAR CUSTOMER GROWTH, UM, FOR AVERAGE NUMBER OF CUSTOMERS DID INCREASE 1.5%. THAT'S PRETTY CLOSE IN LINE WITH PROJECTIONS. UM, THE SALES, HOWEVER, ARE UP 2.5% SINCE LAST YEAR. UM, THIS IS THE EXTRAORDINARY WEATHER I WAS TELLING YOU ABOUT. TYPICALLY, WE DON'T HAVE, UM, THIS RATIO OF INCREASED CUSTOMERS TO, UM, CONSUMPTION. NEXT SLIDE. AND FINALLY, I'LL END WITH A COUPLE SLIDES ON OUR EIA DATA. THIS IS CALENDAR YEAR 25 THAT WAS RE- RECENTLY RELEASED. AUSTIN ENERGY REMAINS AFFORDABLE AND LOWER THAN COMPARABLE ERCOT UTILITIES, AND I'LL SHOW THAT IN THE NEXT COUPLE SLIDES. SO FIRST OFF, UM, STARTING WITH AVERAGE RATES BY CUSTOMER CLASS FOR THE CALENDAR YEAR, UM, SYSTEM, AVERAGE RATES, UM, FOR ERCOT PROVIDERS, WE DO A FILTERING, UH, SYSTEM JUST SO WE CAN PROPERLY, UH, GAUGE OUR PERFORMANCE AGAINST SIMILAR UTILITIES. SO THE TEXAS AVERAGE IS LIMITED TO ERCOT PROVIDERS WITH MORE THAN 3% RESIDENTIAL LOAD. AND FOR CALENDAR YEAR 25, OUR RESIDENTIAL CUSTOMERS STAY LOWER THAN THAT AVERAGE, AND OUR SYSTEM RATES WERE 10.88 CENTS PER KWH COMPARED TO THAT ERCOT AVERAGE OF 11.76 CENTS. NEXT SLIDE. AND I'LL END HERE [01:10:01] SHOWING YOU OUR RESIDENTIAL AVERAGE MONTHLY BILL FOR THAT PERIOD. LOWER THAN AVERAGE RATES THAT WE JUST SAW ON THE PREVIOUS SLIDE, PAIRED WITH LOW CONSUMPTION FOR OUR RESIDENTIAL CUSTOMERS AVERAGED ABOUT 835 KWH FOR THAT TIMEFRAME, RESULTED IN OUR RESIDENTIAL CUSTOMERS SEEING SOME OF THE LOWEST RESIDENTIAL BILLS IN THE ERCOT SYSTEM. IN CALENDAR YEAR 25, THE RESIDENTIAL AVERAGE MONTHLY BILL FOR AN AUSTIN ENERGY CUSTOMER WAS AROUND $110 COMPARED TO THAT ERCOT AVERAGE OF AROUND 178. SO WE DO, UH, CONTINUE TO REMAIN AMONG THE LOWEST IN THE STATE. NEXT SLIDE. QUESTIONS. CONCLUDES MY PRESENTATION. ANY QUESTIONS ONLINE? CYRUS? YES, STEPHANIE, YOU MIGHT NOT BE THE RIGHT PERSON TO ANSWER THIS QUESTION AND FORGIVE ME, BUT, UM, I KNOW AS PART OF ANY POTENTIAL, UM, RATE CASE THAT AUSTIN ENERGY, UM, I GUESS WOULD HIRE A THIRD PARTY TO DO SORT OF ANALYSIS OF THE LAST, UH, YOU KNOW, FISCAL YEAR, COST OF SERVICE STUDY TYPE, TYPE ANALYSIS. IS THAT, IS THAT SOMETHING THAT'S, UM, BEEN SCHEDULED WITH, WITH YOUR TEAM OR, UM, AND IF YOU, IF YOU DON'T HAVE AN ANSWER, YOU DON'T HAVE AN ANSWER, JUST CURIOUS ON THAT, BECAUSE OBVIOUSLY ALL OF THIS INFORMATION ON, ON LAST YEAR WOULD FEED INTO THAT. YEAH. SO, UM, YOU'RE ALL AWARE THAT WE DO THAT, UM, ANNUAL REVIEW. WELL, WE DO AN ANNUAL REVIEW THROUGH THESE FINANCIAL STATEMENTS ACTUALLY QUARTERLY. SO YOU SEE KIND OF A REVENUE ADEQUACY AS WE'RE REPORTING ON RESULTS, UM, FREQUENTLY. BUT OUR FINANCIAL POLICIES, UM, ASK THAT WE DO A COST OF SERVICE REVIEW EVERY FIVE YEARS. UM, WE ALL REMEMBER THE LAST TEST YEAR WAS FY21. IT TOOK ABOUT 18 MONTHS TO GET RATES IN PLACE FROM THAT COST OF SERVICE PROCESS. SO FY 26, WE WILL BE DOING THAT SAME OR SIMILAR RE- REVENUE ADEQUACY REPORT, WHICH WILL BE ISSUED IN AROUND THE SUMMER OF 27. UM, AS YOU'RE AWARE, IT TAKES US SOME TIME TO GO THROUGH THE AUDIT PROCESS. WE'LL HAVE GOOD SOLID RESULTS THAT WOULD FEED INTO THAT REVENUE ADEQUACY REVIEW. AND SO AROUND SUMMER, WE'LL START MORE OF THE DISCUSSIONS ON WHAT THE FISCAL YEAR LOOKED LIKE AND THEN MORE DISCUSSIONS AROUND WHAT THAT PROCESS WILL LOOK LIKE FOR RATE REVIEW. GREAT. SO NOT, NOT SOMETHING THAT WOULD HAPPEN IMMEDIATELY, UH, DURING LEGISLATIVE SESSION, BUT LATER IN THE SUMMER. THAT'S, THAT, THAT'S GOOD. THANK YOU. THAT'S CORRECT. THANK YOU. UM, COMMISSIONER ALVAREZ. UH, THANK YOU. I HAVE A COUPLE QUICK QUESTIONS. UM, ONE'S ON SLIDE EIGHT, I BELIEVE, WHERE IT SAYS CAPITAL IMPROVEMENT PLAN. AND IT SAYS, OBVIOUSLY FOR FY 2026, I GUESS, WHICH IS NOW OVER, BUT WE SEE THAT WE'RE KIND OF OVER ON SOME LINE ITEMS THERE AND UNDER ON SOME LINE ITEMS, BUT DID WE, UH, OVERALL STAY UNDER OUR CIP BUDGET, I GUESS TOTAL BUDGET IN TERMS OF EXPENDITURES? WE DID. AND RIGHT, THIS IS FOR, UH, FISCAL YEAR 26. WE SPENT AROUND 377 MILLION OR 90% OF THE ORIGINAL FY26 BUDGET FOR CAPITAL EXPENSE. OKAY, GREAT. AND THEN ON SLIDE 10, WHICH IS ABOUT ANNUAL CUSTOMER GROWTH, AND YOU MAY HAVE, YOU MAY HAVE EXPLAINED IT, BUT I MISSED IT IF YOU DID, BUT WE HAVE THE AVERAGE NUMBER OF CUSTOMERS, AND THEN YOU HAVE THE OTHER CATEGORY THAT IS SALES AND GIGAWATT HOURS. SO I DON'T KNOW IF YOU COULD EXPLAIN TO ME JUST WHAT SALES AND GIGAWATT HOURS MEANS, BECAUSE IT WENT UP BY 2.4%, BUT I'M NOT SURE WHAT THAT MEANS. YEAH. SO THAT IS OUR CUSTOMER'S CONSUMPTION, AND THAT, UM, KIND OF ALIGNS WITH THIS, THE STORY FROM THE BEGINNING OF THE PRESENTATION, WHICH TALKS ABOUT A 4% OVERAGE IN CUSTOMER USAGE IN A VERY, VERY HOT, UH, FOURTH QUARTER, WHICH TRANSLATED INTO MORE SALES AND UNEXPECTED REVENUE FROM THAT EXTREME WEATHER. TYPICALLY - AND SO WHEN YOU SAY SALES, IT'S SALES TO THOSE CUSTOMERS THAT WE OUTLINED IN THAT GRAPH TO THE LEFT, CHART TO THE LEFT? CORRECT. OKAY. YEAH. YEAH. THE TERM COULD BE USED FOR DOLLARS OR FOR CONSUMPTION AND GIGAWATT, MEGAWATT, ET CETERA, HOURS. ALL RIGHT. GREAT. APPRECIATE [01:15:01] IT. THANKS. ANY, ANY OTHER QUESTIONS? KAIBA, YOU HAVE YOUR HAND UP. YEAH, THANKS. I HAVE A FOLLOW UP TO WHAT, UH, CYRUS WAS ASKING ABOUT, UM, UH, IN TERMS OF THE COST OF SERVICE STUDY AND THE TIMING, UM, FOR, FOR THAT TO BE COMPLETED. I'M JUST REMEMBERING THE LAST TIME AROUND, UH, WHEN IT WAS 2021 TEST YEAR, THAT COS- COST OF SERVICE STUDY WAS MADE AVAILABLE EARLY IN 2022, AND I'M ASSUMING THAT WAS MAYBE BECAUSE SOME OF THE WORK WAS DONE IN ADVANCE OF THE YEAR ENDING, AND THEN THE NUMBERS PLUGGED IN, OR I'M, I'M JUST CURIOUS, UM, I- IS, IS IT BASICALLY THAT OR IS THERE SOME OTHER REASON WHY THIS ONE'S ON A DIFFERENT TIMELINE FROM THAT LAST, UH, GO ROUND? COMMISSIONER WHITE, I HEARD SOME OF YOUR QUESTIONS, SO I'LL, I'LL ANSWER WHAT I DID HERE AND THEN - YOU WANT ME TO TRY AGAIN? MAYBE, UH, IS THIS ANY BETTER? IT'S BETTER, YES. OKAY. I, I JUST AM REMEMBERING FROM THE LAST TIME THERE WAS A RATE CASE, THE PROCESS STARTED IN EARLY, EARLY IN 2022. SO THE COST OF SERVICE STUDY WAS ALREADY COMPLETED VERY EARLY IN 2022 ON A 2021 TEST YEAR. SO I'M JUST CURIOUS, IS IT A DIFFERENT PROCESS YOU ALL ARE GOING THROUGH OR WHAT'S DIFFERENT BETWEEN THE TWO ITERATIONS? IT, IT'S NOT DIFFERENT. WHEN WE DID THE, UM, 2021 TEST YEAR, WE STARTED WITH PRELIMINARY AUDITED NUMBERS, WHICH WE COULD CERTAINLY START LOOKING AT EVEN FOR FY26. BUT AS WE MOVED THROUGH THAT PROCESS, WE DID NOT FINALIZE ANYTHING UNTIL WE HAD FINAL AUDITED NUMBERS. SO THE TIMING OF THE NUMBERS IS VERY SIMILAR AND WOULD, WOULD NOT LOOK ANY DIFFERENT FROM THAT PERSPECTIVE, BUT IT DOES TAKE TIME TO GET THOSE NUMBERS FINALIZED, A, WE HAVE UNTIL MARCH TO COMPLETE AN AUDIT, SO IT WOULD BE MARCH, APRIL OF 2027 WHEN YOU HAVE THOSE FINAL AUDITED STAMP NUMBERS, AND THEN GOING THROUGH THE PROCESS OF LOOKING AT, UM, HOW REVENUE IS RECOVERING COSTS. UM, SO SIMILAR PROCESS AND SIMILAR TIMING. SO AM I MISREMEMBERING? I, I, I KNOW THE RATE CASE STARTED SOMETIME IN WINTER, EARLY SPRING WHEN WE COULD START FILING TO, FOR INTER - TO INTERVENE. UM, WASN'T THE, WAS THE COST OF SERVICE STUDY NOT COMPLETED AT THAT TIME? I THOUGH IT WAS. I WOULD HAVE TO LOOK BACK AT THE SPECIFIC MONTHS, BUT I DON'T THINK IT WOULD HAVE BEEN ANY EARLIER THAN THE, MAYBE THE MARCH, APRIL TIMEFRAME. WE PROBABLY DID SOME PARALLEL WORK WITH THE AUDIT WORK, BUT TO HAVE A FINAL PACKAGE PREPARED, WE WOULD RELY ON THAT WE HAVE A THIRD-PARTY INDEPENDENT REVIEW THAT THE NUMBERS ARE, UH, UH, GOOD TO USE IN A COST OF SERVICE. SO IT COULD BE THAT THE WORK WAS PARALLEL AND MAYBE HAPPENED A BIT EARLIER THIS YEAR. I WOULD IMAGINE WE COULD DO THE SAME, BUT WE'D NEED SEVERAL MORE MONTHS AS WE WORK THROUGH OUR TRANSMISSION COST OF SERVICE. SO WE HAVE OVERLAPPING PRIORITIES THAT MAY NEED TO BUILD IN A LITTLE BIT OF TIME TO MAKE SURE WE GET THE PROCESS DONE CORRECTLY. OKAY. YEAH. IF, IF, SINCE I TOTALLY UNDERSTAND YOU DON'T HAVE ALL THOSE, UH, DATES AND STUFF IN FRONT OF YOU, AND, AND NEITHER DO I. AND WOULD YOU MIND FOLLOWING UP WITH ME ON THAT? SURE. THANK YOU. I CAN'T SEE IF THERE'S ANY MORE HANDS UP. ANY OTHER QUESTIONS ONLINE? ABBY, YOU STILL HAVE YOUR H- HAND UP. OKAY, THERE WE GO. ANY HERE? NO. THANK YOU. THANK YOU. OH, DID YOU HAVE A QUESTION? OH, I WAS JUST WAITING. OKAY. OKAY. [15. Update from the joint RMC/EUC Local Solar + Storage Process Working Group regarding meeting highlights and next steps. (Sponsors: Braden, Tuttle)] SO ITEM 15 IS THE UPDATE FROM THE JOINT RMC EUC LOCAL SOLAR AND STORAGE WORKING GROUP. YOU WANNA TAKE THAT OUT? THE, UH, UH, SURE. THE JOINT EUC RMC LOCAL STORAGE WORKING GROUP MET OCTOBER 19TH AND DISCUSSED THE PROCESS FLOW DIAGRAMS PRESENTED BY MEGAN BRANHAM AT OUR FIRST MEETING. UH, TIM HARVEY JOINED THE GROUP AND HELPED WITH AE'S PERSPECTIVE. UH, OUR NEXT MEETING IS THIS COMING MONDAY, NOVEMBER 16TH. UH, WE'LL BE JOINED BY THREE REPRESENTATIVES OF AUSTIN DEVELOPMENT SERVICES, UH, SCOTT COCHRAN, UH, OF RESIDENTIAL INSPECTION, MARTIN STARR OF COMMERCIAL INSPECTION, AND STEVE LEACH OF RESIDENTIAL AND COMMERCIAL PLAN REVIEW. AND WE'RE STILL REACHING OUT FOR A MEMBER OF THE, UH, AUSTIN ENERGY METERING DEPARTMENT TO ROUND OUT OUR TEAM. UH, TO BETTER UNDERSTAND THE SOLAR, UH, PROCESS FLOW [01:20:01] FOR COMMERCIAL, UH, DAVID LEVESQUE AND STAN PIP - STAN PIPKIN OF SOLAR AUSTIN CREATED A SPREADSHEET THAT INCLUDES ALL OF THE PROCESS STEPS AND PROVIDES A MEANS TO WRITE FEEDBACK AND COMMENTS ALONG WITH THEM. I'VE FORWARDED THIS TO THE WORKING GROUP, UH, JUST TODAY, SO THERE'LL BE SOME TIME TO LOOK AT IT BEFORE THE MEETING. UH, BUT IT'S EXTRE - IT'S EXTREMELY GRANULAR AND COMPLEX, AND I BELIEVE IT WOULD BE WORKED BETTER ON, ON THE CLOSE DETAIL OF A RELEVANT SUBGROUP OF STAFF ALONG WITH SOLAR AUSTIN TEAM WHO COULD REALLY DIG INTO THE DETAILS AND THEN REPORT BACK TO THE WORKING GROUP. SO WE'LL DISCUSS HOW THAT WOULD WORK IF, IF PEOPLE ARE IN AGREEMENT TO DO IT THAT WAY. IN ADDITION, WE'LL BEGIN TO DISCUSS BROADER ISSUES OF THE WORKING GROUP, INCLUDING TRYING TO SET METRICS AND REPORTING FOR PROCESS IMPROVEMENTS. I MEAN, WE STARTED THIS AND WE REALLY DON'T HAVE AN ONGOING MEASURE OF HOW, HOW QUICK SHOULD THIS HAPPEN OR HOW QUICK COULD IT HAPPEN OR WHAT OUR GOALS ARE. SO WE'VE GOTTA PUT SOME THOUGH INTO THAT. UH, WE WANNA LOOK AT EVALUATING THE AUTOMATED PERMITTING AND DESIGN REVIEW PROCESS, EVALUATING THE MANY DATASETS IN THE PROCESS BETWEEN AE AND DIFFERENT DEPARTMENTS AND THE DESIGN SERVICES PEOPLE. SO HOPEFULLY ALL THE INFORMATION COULD BE ENTERED ONCE FOR ALL THE DIFFERENT PROCESS STEPS AND HAVE IT BE CONSISTENT ACROSS ALL THE DATASETS. UM, WANT TO EVALUATE INTER DEPARTMENT COMMUNICATION AND OVERLAP OF RESPONSIBILITIES. AND, UH, FINALLY, UH, AT THE END OF THIS PER - HOPEFULLY CREATE A PROCESS FOR CONTINUOUS IMPROVEMENT WITH CONTINUOUS COMMUNICATION BETWEEN STAFF AND SOLAR CONTRACTORS, BECAUSE I'M SURE THINGS ARE GONNA INVOLVE. THERE'S GONNA BE ALL KINDS OF NEW DETAILS. HOPEFULLY, THERE'LL BE A LOT MORE VOLUME IN THE FUTURE TOO, SO WE NEED A, A WAY TO CREATE CONTINUOUS IMPROVEMENT. UM, SO THAT'S IT FOR THE, UH, LOCAL SOLAR WORKING GROUP. ANY QUESTIONS? A LONG DURATION STORAGE [16. Update from the joint RMC/EUC Long Duration Storage Working Group regarding meeting highlights and next steps. (Sponsors: Braden, Tuttle)] GROUP. THE LONG DURATION STORAGE GROUP. UH, WE MET LAST THURSDAY, THE 5TH, AND, UH, THE MEETING WAS HIGHLIGHTED BY AN OVERVIEW PRESENTATION ON LONG TER- TERM STORAGE OPPORTUNITIES BY ANNA, UH, SEIKLIN, WHO'S THE POLICY DIRECTOR FOR THE LONG TERM STOR - LONG DURATION STORAGE, UH, COUNCIL. THEY'RE AN INTERNATIONAL ORGANIZATION OF SUPPLIERS. UM, AND AFTER A GOOD DISCUSSION ABOUT ALL THOSE OPPORTUNITIES, UH, RUSSELL, MATTHEW RUSSELL FROM AUSTIN ENERGY MENTIONED THERE IS A CARBON-FREE RFP IN PROCESS RIGHT NOW, CLOSING IN DECEMBER, UH, THAT INCLUDED BEST STORAGE, B-E-S-S. SO WE GOT ALL EXCITED ABOUT THAT, BUT IT TURNS OUT THIS IS REALLY LIMITED, AS I UNDERSTAND, TO BATTERY STORAGE, LITERALLY BEST AND NOT LONG-TERM. BUT THERE'S A RFP, UH, IN THE WORKS RIGHT NOW BEING DRAFTED, UH, TO BE SENT OUT Q1 OF NEXT YEAR THAT WOULD BE, UH, FOCUSED ON A WHOLE BROAD PALLET OF ANY KIND OF STORAGE OPTIONS. SO I THINK THIS IS A GOOD TIME TO DISCUSS THAT WITH AUSTIN ENERGY. AND, UH, MATTHEW ALSO AGREED TO MAKE SURE ALL THE MEMBERS OF THE LDES GROUP, ALL THE DIFFERENT MANUFACTURERS, UH, WOULD BE GIVEN NOTIFICATION OF THE RFP SO THAT THEY COULD, UH, HOPEFULLY BRING SOMETHING TO THE TABLE. FOR OUR DECEMBER MEETING, ANNA, ALONG WITH ALISON SILVERSTEIN, WILL WORK TO INVITE, UH, SOME SELECTED MANUFACTURERS TO DISCUSS THEIR TECHNOLOGY, APPLICATIONS, AND THE BROAD ECONOMIC BENEFITS THAT THEY MIGHT HAVE IN THE ERCOT MARKET. UH, NATURALLY, THIS WOULD BE PUBLICLY AVAILABLE INFORMATION SO AS NOT TO INTERFERE WITH THEIR ABILITY TO RESPOND TO AE'S UPCOMING RFP. BUT, UH, THERE'S A LOT OF INTERESTING STUFF GOING ON THERE, AND, UH, A LOT OF THINGS THAT I LEARNED HAVE, HAVE PROGRESSED A LOT SINCE I LAST READ ABOUT THEM. SO I THINK IT'S A, IT'S AN INTERESTING GROUP, AND, UH, I THINK THERE'S ANOTHER SLOT FOR EUC IF ANYBODY'S INTERESTED IN JOINING US. BUT THAT'S THE REPORT ON THAT. ANY QUESTIONS? CYRUS? UH, NOT REALLY A QUESTION, JUST I APOLOGIZE FOR MISSING THE MEETING. THAT WAS A CRAZY DAY, UH, LAST THURSDAY WITH SO MANY THINGS GOING ON. BUT, UM - I BET. UH, PLEASE, UH, YOU KNOW, ONCE YOU HAVE THE INVITE FOR THE DECEMBER MEETING, MAKE SURE YOU SEND IT TO BOTH MY EMAILS, BECAUSE SOMETIMES I MISS SOME STUFF. UH, SO, BUT THAT, THAT'S EXCITING ABOUT THE DIFFERENT TECHNOLOGIES. I KNOW THAT IN OUR WORKING GROUP ON THE GEN PLAN, WE, YOU KNOW, WE LOOKED AT SOME OF THAT, BUT I FELT, FEEL LIKE WE SCRATCHED THE SURFACE [01:25:01] THERE, YOU KNOW, UM, I KNOW IN THE PAST, WE HEARD ABOUT COMPRESSED AIR ENERGY STORAGE, AND THERE'S SOME STORAGE APPLICATIONS IN GEOTHERMAL AS WELL, AND THEN, OF COURSE, ALL THE DIFFERENT TECHNOLOGIES, SO IT'S EXCITING STUFF. HOPEFULLY, IT, IT PROGRESSES AND THE COSTS COME DOWN. UH, AND I'M EXCITED ABOUT THE RFP AS WELL. OKAY. VERY GOOD. ANYONE ELSE? OKAY. THANK YOU FOR THAT UPDATE. SO LET'S TALK ABOUT [FUTURE AGENDA ITEMS] FUTURE AGENDA ITEMS. WHAT ARE SOME OF THE FUTURE AGENDA ITEMS THAT PEOPLE ON THE COMMISSION WOULD LIKE TO SEE? OKAY, THE LIST THAT AL AND I HAD SORT OF COMPILED IN THE PAST WAS THE UPDATE ON THE PROGRESS OF THE COST OF SERVICE STUDY. I THINK, CYRUS, YOU BROUGHT THAT UP, AND THAT WAS - YEAH, WE, WE COULD GET A PRESENTATION ON THE TIMING OF ALL THAT, AND OBVIOUSLY ONCE THE COST OF SERVICE STUDY COMES OUT, WE DEFINITELY WANNA SEE IT, BUT IT'D BE NICE TO KNOW. IT, IT, TO THE EXTENT AUSTIN ENERGY, YOU KNOW, COMES UP WITH THEIR, KIND OF THEIR CALENDAR, IT'D BE NI - YOU KNOW, IT'D, IT'D BE IMPORTANT FOR US TO KNOW THAT. OKAY. UM, AN UPDATE ON THE RESILIENCY PLAN, HOW IT'S GOING WITH RECLOSERS AND INSULATED CONDUCTORS AND ALL THAT. UM, THE SOLAR TEAM, THIS IS ONE THAT I LOGGED. THERE WAS A COUNCIL RESOLUTION BASED UPON AN RMC RECOMMENDATION, AND WE JUST HAD THIS DOWN. KAIBA, CAN YOU HELP ME WITH THIS ONE? I CAN, ALTHOUGH MY HOPE IS THAT NOW THEY, THEY DO THE, I GUESS, UPDATE TO COUNCIL BEFORE IT COMES TO US, AND SO I THINK WE DON'T MEET AGAIN THIS YEAR. UM, BUT YEAH, IN APRIL, COUNCIL PASSED A RESOLUTION THAT WAS DIRECTING AE TO LOOK AT SOME SORT OF KIND OF HOSTING MODEL FOR RESIDENTIAL SOLAR AND, AND I THINK BATTERIES AS WELL. UM, SOMETHING, YOU KNOW, KIND OF TO REPLACE SOLAR FOR ALL OR, YOU KNOW, MAYBE EXPAND ON THAT CONCEPT, ALTHOUGH I DON'T KNOW THAT SOLAR FOR ALL WAS ACTUALLY MENTIONED IN THE RESOLUTION, BUT THAT'S MY SUMMARY. OKAY. SO WHEN YOU SAY REPLACE, THAT MEANS SINCE SOLAR FOR ALL WAS EFFECTIVELY DEFUNDED, YOU'RE SAYING - YEAH. WHAT'S THE NEW PROGRAM? THAT'S RIGHT. AND, YOU KNOW, AND THEN I, I GUESS IT WAS, THERE WERE TWO THINGS MOVING, UM, THAT BOTH STALLED OUT. ONE WAS SOLAR FOR ALL, AND THEN, UH, THERE WAS THE SOLAR STANDARD OFFER, WHICH, YOU KNOW, AT ONE POINT HAD THE POTENTIAL TO BE A RESIDENTIAL AND COMMERCIAL, UH, PROGRAM THAT, YOU KNOW, TURNED INTO JUST A COMMERCIAL PROGRAM. SO THEN ALONG CAME THIS RESOLUTION TO, YOU KNOW, KIND OF REJUVENATE THE LOOK AT WHAT DO WE DO FOR RESIDENTIAL FOR FOLKS THAT DON'T WANNA INVEST THEMSELVES BUT HAVE A VIABLE ROOFTOP FOR SOLAR OR MAYBE BATTERIES AS WELL. OKAY. OKAY. UM, THERE WAS AN INTERESTING ARTICLE, AND MAYBE THIS IS SOMETHING O- OFFLINE, ON ASSET UTILIZATION. I RECALL A NUMBER OF YEARS AGO, ONE OF THE FINANCE PEOPLE TALKED ABOUT TRYING TO IMPROVE THE ECONOMICS, SPREADING CAPEX, UH, AMORTIZATION OVER LARGER VOLUME AND THINGS LIKE THAT. AND, UM, I'M NOT SURE THIS DESERVES TO BE A TOPIC HERE, BUT I JUST WONDERED IF THAT'S A KEY METRIC OR THAT'S SOMETHING THAT YOU'RE EXPLORING THAT YOU CAN DO MUCH WITH, BUT I'M NOT ANSWERING, ASKING FOR AN ANSWER RIGHT NOW, BUT MAYBE WE CAN TALK. OTHER THING IS, INTERESTING STUDY VERY RECENTLY BY THE DALLAS FED THAT STUDIED THE ACTUAL IMPACT FROM DATA CENTERS ON WHOLESALE PRICES, AND I THINK THAT'S GOING TO GET SOME BROADER MEDIA ATTENTION AND DESERVEDLY SO. AND IT SAID, I THINK, IN ERCOT THAT THEY CALCULATED A 12.6% INCREASE IN THE WHOLESALE PRICES, AND THE QUESTION IS, WELL, I, I BELIEVE THE ANSWER WILL BE POSITIVE IN THAT SOMEHOW AUSTIN ENERGY, UM, WAS, UH, VERY ADEPT AT DAMPENING THAT FOR ITS CUSTOMERS BY, BY LONG-TERM, WHATEVER, BUT WHAT REALLY ROLLED INTO THE RETAIL RATES IF THE WHOLESALE RATES, AND MAYBE THOSE ARE JUST WHOLESALE SPOT MARKET, NOT LONG-TERM, RIGHT? BUT CAN YOU EXPLAIN WHEN PEOPLE READ 12.6, WHAT HAPPENED TO THEIR AUSTIN ENERGY RATES? AND OF COURSE, THAT WOULD BE JANUARY-ISH. UM, AND THEN, KAIBA, YOU HAD MENTIONED SOMETHING ABOUT... A RESIDENTIAL THIRD [01:30:01] PARTY OWNERSHIP PROGRAM OR AM I USING THE WRONG TERMINOLOGY FOR THAT? UH, THAT, THAT'S THE SAME AS THE OTHER ITEM. OH, IT'S A SOLAR FOR ALL REPLACEMENT? YEAH. YEAH. I THINK THAT WE CAN, WE CAN USE THAT AS A SHORTHAND OR JUST, YOU KNOW, RESIDENTIAL SOLAR AND BATTERY HOSTING. UM, I GUESS REGARDLESS OF WHETHER COUNCIL HAS ALREADY RECEIVED THE UPDATE BY THE TIME WE MEET NEXT, IT WOULD BE GREAT TO HEAR WHAT THE UTILITY HAS COME UP WITH IN RESPONSE. AL? I, I'M HAVING TROUBLE UNDERSTANDING YOU, KAIBA, EVEN, EVEN WITH MY HEARING AIDS TURNED ALL THE WAY UP. YEAH, I'M SORRY. I DON'T KNOW WHAT... MY COMPUTER'S BEEN WORKING FINE ALL DAY. I, I, I DON'T KNOW IF IT'S A WEBEX THING WITH MY CONNECTION. I, I'M SORRY. UM, BUT SAME, SAME ISSUE. ONE ITEM THERE IN TERMS OF THE UPDATE. JUST, JUST ONE UPDATE ON THAT ITEM. I, I UNDERSTOOD THE WORD SOLAR FOR ALL, AND MY LAST UNDERSTANDING WAS THAT WASN'T DEAD YET, THAT THERE WAS STILL FUNDING THAT HAD BEEN RELEASED TO HOUSTON AND MIGHT BE COMING OUR WAY. OKAY. AM I WRONG ABOUT THAT OR IS IT, IS THAT DEAD OR ALIVE? I DON'T... YEAH, I DON'T KNOW. MAYBE WE SHOULD AVOID USING - I THINK IT'S, I HOPE IT'S ALIVE, BUT - I, I, WE SHOULD PROBABLY AVOID USING SOLAR FOR ALL FOR THIS SO AS TO NOT CONFUSE. LET'S JUST SAY, YOU KNOW, RESIDENTIAL HOSTING. IT, IT WAS A GREAT PROGRAM IF, IF IT BECAME AVAILABLE. IT, CAN WE MARK THAT DOWN IN NICKI'S LIST AND GET AN UPDATE? YEAH. OKAY. ANY OTHER IDEAS FOR FUTURE AGENDA ITEMS? OKAY. WELL, WITH THAT, LET'S ADJOURN AT 7:35. THANK YOU. IS THIS IT FOR YOU? * 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.