[00:00:04]
WE THINK SHE'S COMING ALONG IN A FEW MINUTES.
UH, CYRUS REED, UM, RACHEL STONE, UM, DAVE TUTTLE, MATT WELDON PRESENT, AND STEFAN RAY.
I BELIEVE RACHEL, UH, I BELIEVE THAT GIVES US SIX MEMBERS, WHICH IS A QUORUM AND AS OTHER PEOPLE COME ON, WE WILL ANNOUNCE THEM FOR THE RECORD.
MOST OF YOU GUYS I'M SURE HAVE GOT SOME EXPERIENCE WITH THIS, UH, ALREADY, UM, UH, I'LL START WITH, UH, STAY ON MUTE MUSH.
YOU ARE GOING TO BE SPEAKING, UH, LET EVERYBODY KNOW THAT WE HAVE TILL 1130, UH, TO ACCOMPLISH THIS MEETING.
AND THAT'S BASICALLY HOW LONG THE CITY CLERK IS ABLE TO ACCOMMODATE US.
SO BEING, UH, BEING, UH, EFFICIENT TO WITH OUR, UH, COMMENTS AND STUFF WOULD BE HELPFUL.
RACHEL HAS, UH, HAS, UH, UH, JOINED US, CORRECT.
I'M STILL GONNA TRY TO GET ON THE, UM, LINE.
UM, UH, SO, UM, WE HAVE ONE AND A HALF HOURS.
PLEASE STAY, EVERYBODY STAY ON MUTE UNLESS YOU WERE ACTUALLY SPEAKING, UM, ONE OR TWO OTHER KIND OF, UH, UM, YOU KNOW, JUST PR PROCESS THINGS.
UM, UH, WEBEX HAS A CHAT FEATURE, PLEASE DON'T USE THAT.
UH, OUR COMMENTS NEED TO BE PUBLICLY AVAILABLE.
UH, SO, UM, UH, KEEP ALL OF YOUR COMMENTS ORAL, SO THERE'LL BE CAPTURED FOR THE RECORD.
UM, WE, UH, WE WOULD HAVE CITIZEN COMMUNICATIONS TODAY, BUT NOBODY HAS SIGNED UP TO SPEAK ON ANY OF OUR ITEMS. UM, SO, UH, SO WE'LL BE ABLE TO GET, UH, GET PAST THAT PRETTY QUICKLY.
[CALL MEETING TO ORDER]
START BY JUST CALLING THE MEETING TO ORDER IT'S 10, 12 A AM ON MAY THE 11TH.UH, WE ARE ACCOMPLISHING THIS CALL THROUGH, UH, ONLINE WEBEX, UH, EXPERIENCE, UM, UH, UM, UH, AND, UH, THE FIRST ITEM,
[1. APPROVAL OF MINUTES – Approve minutes of the March 9, 2020 regular and special called joint commission meetings.]
NO CITIZEN COMMUNICATIONS WILL BE APPROVAL OF THE MINUTES.THE MINUTES SENT OUT WITH, UH, UH, MEETING MATERIALS.
DOES ANYONE HAVE ANY COMMENTS TO THE MINUTES? OKAY.
I WOULD ENTERTAIN A MOTION TO APPROVE AND, UH, LET ME SUGGEST THAT PEOPLE, UH, BOTH SAY, AYE, IF THEY'RE IN FAVOR AND RAISE YOUR HAND, IF YOU'RE ON VIDEO SO THAT WE CAN SEE IT.
UM, OR ACTUALLY, I GUESS I SHOULD CALL THE ROLE FOR THIS, UH, GIVEN THAT WE'VE MOVED CARRIE.
UM, MARTY HOPKINS, UH, MOVED APPROVAL.
IS THERE A SECOND, SECOND WITH CYRUS? OKAY.
UH, UH, WELL, I'M JUST GOING TO GO AHEAD AND CALL THE ROLL THEN.
UH, CARRIE VIRTUAL, I, MARTY HOPKINS.
I'D SAY IT'S, IT TAKES A LITTLE COORDINATION TO GET IT, GET USED TO IT.
HI, RACHEL STONE, A TUTTLE AND STEFAN RAY.
[Consent Agenda]
UH, WE HAVE SIX ITEMS ON THE CONSENT AGENDA.IS THERE ANYONE WHO WOULD LIKE TO PULL AN ITEM FOR FURTHER DISCUSSION? HI, THIS IS CYRUS.
I JUST HAD A QUICK QUESTION ON THE CLEAR RESULTS CONTRACTS.
[00:05:01]
OKAY, THAT BEING THE CASE, I WOULD ENTERTAIN A MOTION FOR APPROVAL OF TWO, THREE ITEMS, TWO, THREE, FIVE, SIX, AND SEVEN.IS THERE A SECOND MOUNT WELDON? UH, SECOND, UM, UH, ALL-IN SITE.
WELL, I GOTTA DO THE SAME THING.
UH, JUST ASK IF ANYONE VOTES AGAINST AND WE COULD GO THAT WAY, I GUESS THAT WORKS.
ANYONE, UH, ANYONE OPPOSED? OKAY.
[4. (6/4) [Purchasing] Authorize negotiation and execution of a multi-term contract with CLEAResult Consulting Inc D/B/A CLEAResult, to provide support services for energy efficiency retail instant savings program, for up to five years for a total contract amount not to exceed $5,250,000.]
ITEM FOUR.DO WE HAVE, UH, STAFF AVAILABLE TO SPEAK TO ITEM FOUR? SURE.
I CAN, UM, ANSWER ANY QUESTIONS AND TERRY MOORE CAN CHIME IN IF THERE ARE MORE QUESTIONS.
THE AMOUNT OF THE CONTRACT IS THAT SIMILAR TO, UH, THE AMOUNTS OF CONTRACTS WE'VE HAD BEFORE FOR THIS KIND OF WORK WITH RETAILERS, YOU KNOW, UM, OR MAYBE COMPLETELY NEW.
SO IS IT SORT OF IN LINE WITH IN THE PAST? RIGHT.
SO WE FIRST ENTERED INTO THIS CONTRACT IN 2014 AT SLIGHTLY HIGHER THAN THAT IN LARGE PART, AS WE ARE IN VERY MANY MORE STORES.
AND THE MEGAWATTS NOW ARE WELL IN EXCESS OF TWO MEGAWATTS A YEAR.
I'LL PROBABLY THINK IT'S ROUGHLY 1.1, $1.2 MILLION A YEAR.
IT STARTED OUT AT ABOUT 9,000 TO A MILLION.
SO NOT SIGNIFICANT SORT OF IN THE, IN THE, IN THE GENERAL RANGE.
AND THEN MY SECOND QUESTION IS, IS THIS CONTRACT BROADENED? SO AS NEW TECHNOLOGIES COME ALONG, UM, THEY CAN EASILY BE ADDED AS PART OR AS LIMITED TO THE TYPES OF PRODUCTS THAT CAN BE USED, OR IT CAN BE INCENTIVIZED.
IT CAN BE BROADENED TO INCLUDE NEW TECHNOLOGIES.
AND IN FACT, OVER THE COURSE OF THE PREVIOUS CONTRACT OR THE ONE WE HAVE IN PLACE NOW WE'VE ADDED TECHNOLOGY.
UH, IN THAT CASE, I WOULD ENTERTAIN A MOTION FOR APPROVAL OF ITEM FOUR.
UH, IS ANYONE, UM, UH, POSED, I'M GOING TO RECORD EVERYONE BEING IN FAVOR UNLESS SOMEBODY SAYS OTHERWISE.
[8. 2nd Quarter Financial Briefing]
OKAY.LET'S TURN TO, UH, UH, UH, WHICH IS THE SECOND QUARTER FINANCIAL BRIEFING BRIEFING.
I ASSUME THAT IS WHY, UM, MR. DOMBROSKI HAS JOINED US TODAY.
SO DO WE HAVE A PRESENTATION THAT WE WANT TO PUT UP ON THIS? UH, ACTUALLY I, I THINK, UM, IT WAS, YEAH, GO AHEAD.
I'M JUST CHECKING IN WITH JOSEPH.
JOSEPH, DO I NEED TO SHARE MY SCREEN OR A CTM FOR DISPLAY THE BRIEFING FOR ITEM NUMBER? YES, WE CAN GO AHEAD AND GET THAT UP IN WHOEVER'S PRESENTING.
IF YOU CAN JUST COMMUNICATE WHEN YOU'RE READY TO CHANGE SLIDES, CTM, WE'LL GO AHEAD AND SWITCH TO THE NEXT SLIDE.
SO, UM, GIVE HIM ONE AND HE'LL PULL THAT UP FOR YOU.
THE PRESENTATION IS UP, SO YOU ARE READY TO BEGIN, UM, AS YOU PLEASE.
CAN EVERYONE SEE THE BREAK? I'M HAVING A DIFFICULT TIME MAKING OUT WHAT YOU'RE SAYING? YEAH.
CAN YOU SEE THE PRESENTATION AT THIS TIME? OKAY.
SO, UM, STARTING ON PAGE ONE, GOOD MORNING.
AND BRUSCA THE CFO OF AUSTIN ENERGY, AND I'M GOING TO PRESENT OUR UNAUDITED RESULTS IN THE SECOND QUARTER OF FISCAL YEAR 2020, THE PERIOD ENDING MARCH 35TH.
I'D LIKE TO MENTION UP FRONT THAT THERE ARE NO EFFECTS OF THE COVID PANDEMIC IMPACTING OUR SECOND QUARTER RESULTS AS A STAY-AT-HOME WORK SAFE PROTOCOL DID NOT BEGIN UNTIL THE LAST TWO WEEKS
[00:10:01]
OF THE PERIOD.PAGE TWO, THE RESULTS PRESENTED THIS MORNING ARE PRELIMINARY AND ON AUDIT AUDITED RESULTS ARE AVAILABLE IN MARCH OF THE SUBSEQUENT YEAR.
IT MIGHT HAVE A SLIGHT DELAY BECAUSE OF IT BEING TELEVISED ON ATX THEN, BUT, UM, IT'S JUST A FEW SECONDS.
I'LL BE PRESENTING ON OUR STANDARD AGENDA THIS MORNING AND I'LL INCLUDE A SUMMARY OF THE RECENT UTILITY BILL RELIEF APPROVED BY OUR CITY COUNCIL IN APRIL PAGE FOUR, COVER THE EXECUTIVE SUMMARY.
NOW PAGE FIVE, A FEW HIGH-LEVEL NOTEWORTHY THINGS TO POINT OUT IS WE ARE IN GENERAL COMPLIANCE WITH OUR FINANCIAL POLICIES, EXCEPT OUR CAPITAL RESERVE, WHICH I'LL TOUCH ON THE UPCOMING RESERVES WIDE OPERATING REVENUES OF 629 MILLION ARE HIGHER THAN BUDGET AND A PRIOR, PRIMARILY DUE TO HIGHER RETAIL SALES DUE TO WARMER WEATHER IN THE FIRST QUARTER, OPERATING EXPENSES ARE TRENDING HIGHER AT 515 MILLION VERSUS A BUDGET OF 505 MILLION.
THIS RESULTS IN AN OPERATING INCOME OF 115 MILLION, WHICH WITH WHICH WE USE TO PAY FOR DEBT SERVICE ADMINISTRATIVE SERVICES TO THE CITY, OUR GENERAL FUND TRANSFER, ECONOMIC DEVELOPMENT, CITY TECHNOLOGY MANAGEMENT, AND THE CASH PORTION OF OUR CAPITAL IMPROVEMENT PLAN.
IT RESULTS FOR SECOND QUARTER AS A BUDGETARY, A DEFICIENCY AT 65 MILLION VERSUS A PLANT EFFICIENCY OF 53 MILLION, WHICH I WILL COVER A LITTLE LATER.
OUR BALANCE SHEET IS LIQUID WITH A WELL-BALANCED MIX OF CAPITAL FUNDING AND THE HEALTHY CASH RESERVE BALANCE AT 705 MILLION.
AS I MENTIONED, NONE OF THE MARKET.
THIS STREAM IS I'LL BE REVIEWING THE $35 MILLION UTILITY BILL RELIEF PACKAGE APPROVED BY OUR CITY COUNCIL, PAGE SIX, OH, COVER OF FINANCIAL POLICY COMPLIANCE PAGE SEVEN, AUSTIN ENERGY'S FISCAL YEAR 20 BUDGET INCLUDES THREE TYPES OF FINANCIAL POLICIES, DEBT RESERVES, AND OPERATING.
WE ARE COMPLIANT WITH OUR FINANCIAL POLICIES, WITH THE EXCEPTION OF CAPITAL RESERVE.
WE ARE AT 70 MILLION FUNDED TODAY AND EXPECT TO STAY THERE.
AND FYI 20 AS NO RESERVE TRANSFERS ARE IN FY 20 BUDGET.
DESPITE THE UNDERFUNDING WE'RE WELL ABOVE OR 150 DAYS, MINIMUM CASH REQUIREMENT OF 414 MILLION WITH ACTUAL AND CASH RESERVES, $705 MILLION.
NEXT I WILL COVER OUR PERFORMANCE MEASURES GOING TO PAGE NINE.
I'LL COVER THE FOUR FINANCIAL METRICS WITH WHICH WE MONITOR AND REPORT ON OUR STRATEGIC PLAN FOR THE PERIOD AND THE MARCH, 2020.
WE ARE BELOW OUR TARGETS FOR OPERATING MARGIN AND DEBT TO CAPITALIZATION OUR OPERATING MARGINS.
AT THE END OF MARCH, 2020, IT WAS 5%.
ALTHOUGH THE GOAL, THIS IS PRIMARILY DUE TO TIMING OF RECOVERY FOR NACADOCIOUS DEPRECIATION AND BOND RECOVERY.
SINCE OUR PROJECTED VIABLE PRESENCE SHORTER THAN THE BOND MATURITY.
ANOTHER CONTRIBUTING FACTOR IS THAT 2020 IS YEAR FOUR OF A FIVE-YEAR BASE RATE.
AND MARGINS WERE NATURALLY DECLINED FOR UNEXPECTED EVENTS, SUCH AS WHETHER IT MAINTENANCE OR DEBT TO CAPITALIZATION AT 51%.
IT'S SLIGHTLY ABOVE OUR TARGET 50% AS A RESULT OF OUR ACQUISITION OF NACADOCIOUS, WHICH WAS ANTICIPATED AND CONSIDERING A PRUDENT SALE, GIVEN THE $300 MILLION IN AVOIDED COSTS THAT RESULTED FROM THE ACQUISITION.
A FIVE-YEAR FORECAST INDICATES THAT WE SHOULD HIT OUR TARGET BY 2025 PAGE 10 AUSTIN ENERGY'S AFFORDABILITY GOAL HAS TWO METRICS.
THE AFFORDABILITY METRICS SEEKS TO MAINTAIN SYSTEM AVERAGE RATES AT OR BELOW 2% ANNUALLY COMPOUND GROWTH RATE THAT BEGAN OCTOBER, 2012.
WE ARE MEETING THAT METRIC LIKE COMPETITIVE.
THIS METRIC SEEKS TO MAINTAIN AVERAGE ANNUAL SYSTEM RATE AT THE LOWER 50% OF ALL TEXAS UTILITIES, SERVING RESIDENTIAL COMMERCIAL AND INDUSTRIAL CUSTOMERS AS MEASURED AND PUBLISHED BY THE ENERGY INFORMATION ADMINISTRATION FOR EIGHT 61 ABOUT THEIR DATA FOR THE CALENDAR YEAR, FYI 18.
AND WHILE AUSTIN, ANDREA REMAINS ABOVE THE AVERAGE, WE HAVE IMPROVED SINCE 2016, 17 WITH SYSTEM AVERAGE AT 100.4% OF THE AVERAGE.
[00:15:01]
WE'RE RIGHT AT THE AVERAGE THERE, MARK.QUICK QUESTION AGAIN, THAT THAT UTILITY INCLUDES NON-NARCOTIC UTILITIES, CORRECT? THAT'S CORRECT.
THAT IS ALL OF TEXAS ABOUT THE REGULATIONS AND REGULATED PORTIONS OF THE MARKET.
I'M GOING TO COVER OUR ACTUAL, THE BUZZES ANALYSIS.
UH, IN THE SECOND QUARTER, GOING TO PAGE 12 ARE BUDGETED BASED OPERATING REVENUES.
THE SECOND QUARTER OR 629 MILLION, 3 MILLION OVER OUR BUDGET OR 0.5%.
OUR SUPPLY REVENUE WAS DOWN BY EIGHT.
MY ANDREW, THE LOWER PRICES AND ERCOT WHILE CONSUMPTION WAS SLIGHTLY HIGHER RESULTING IN 1.4% HIGHER BILL BATES REVENUES, PAGE 13, OKAY.
OUR BUDGET IS BASED OPERATING EXPENSES FOR THE QUARTER WERE 515 MILLION AND ARE TRENDING 2% HIGHER THAN BUDGET.
MOSTLY THERE'S A HIGHER ONM COST IN POWER PRODUCTION, ELECTRIC SERVICE DELIVERY AND CONTRACTS AND ENERGY SERVICES DELIVERY.
ALL RIGHT, CUSTOMER ENERGY SOLUTIONS, POWER SUPPLY WAS SLIGHTLY OVER BUDGET BY 1%, WHICH IS ALL SET BY A FAVORABLE VARIANCE AND GENERAL ADMINISTRATIVE COSTS.
THIS IS OUR BUDGET TO ACTUAL VARIANCE ANALYSIS FOR THE QUARTER, WHICH PROVIDES A LITTLE MORE DETAILED WHERE I PRESENTED THE EXECUTIVE SUMMARY.
YOU'LL SEE THAT MOST OF OUR VARIANCES ARE MINOR WHEN COMPARED TO ACTUAL COSTS OF THE FYI 20 BUDGET OPERATING INCOME IS BELOW BUDGET TO THE $13 MILLION INCREASE IN OPERATING COSTS, PRIMARILY RELATED TO POWER PRODUCTION, ELECTRIC SERVICE DELIVERY, CUSTOMER ENTRY SOLUTIONS.
DEBT SERVICE IS UP SINCE PRIOR YEAR DUE TO THE
AND YOU'LL SEE THAT THE FYI 20 BUDGET NOW REFLECTS THE TRANSFERS NEEDED TO MAKE THAT PAYMENT.
OUR INCOME BEFORE TRANSFERS AT THE END OF SECOND, QUARTER 61 MILLION VERSUS A BUDGET OF 73 MILLION AFTER MAKING OUR DEBT SERVICE AND TRANSFER PAYMENTS.
WE ENDED THE SECOND QUARTER WITH A DEFICIENCY AT 65 MILLION RATHER THAN 53 MILLION.
OUR REVENUES TYPICALLY PEAK IN THE THIRD AND FOURTH QUARTER.
SO WE SHOULD SEE THAT DEFICIENCY CORRECT ITSELF BEFORE THE END OF THE YEAR, PAGE 15 TO THE SECOND QUARTER, OUR ENERGY SALES WORTH APPROXIMATELY 6,138 GIGAWATT HOURS, WHICH IS 80 GIGAWATT HOURS, OR 1.3% OF BARBARA FORECAST DID THE SLIGHTLY WARMER WEATHER THAN NORMAL IN THE FIRST QUARTER OF THE YEAR.
HAVE YOU GUYS DONE ANY KIND OF, UH, ANALYSIS OF MORE PEOPLE WORKING FOR HOME BUSINESSES, MAYBE HAVING LESS SALES, HOW THAT'S GOING TO IMPACT YOUR ELECTRIC SALES OR IS IT TOO EARLY TO REALLY DO THOSE KINDS OF ANALYSIS? WE ARE WATCHING A LOAD.
WE DO SEE WE, WE ANTICIPATE SLIGHTLY HIGHER RESIDENTIAL, UH, CONSUMPTION AND SLIGHTLY LOWER DEMAND AND CONSUMPTION ON THE COMMERCIAL SIDE.
UH, THERE MAY BE AN OFFSET OF THE EFFECT OF THE TWO, BUT IN THE MONTH OF APRIL, WE WERE 1% OF OUR FORECAST.
SO WE WERE AT 99% OF OUR FORECAST.
SO NEAR NORMAL FOR APRIL, WE'LL CONTINUE TO WATCH, UH, CONSUMPTION CHANGES FOR OUR CUSTOMERS.
AND I'LL GET A LITTLE BIT MORE INTO THAT.
WHEN I TALK ABOUT THE RATE RELIEF PACKAGE THAT WE PASSED AND APRIL GOING TO PAGE 16, AUSTIN ENERGY'S NON POWER SUPPLY REVENUES ARE OVER BUDGET BY ABOUT 3.9 MILLION OR 1.1%.
AND THIS IS PRIMARILY RELATED TO POWER PRODUCTION, ELECTRIC SERVICE DELIVERY AND CUSTOMER ENERGY SOLUTIONS.
SOME OF THESE ARE ENCUMBRANCES, WHICH WILL WORK THEMSELVES OUT THROUGH THE COURSE OF THE YEAR.
THIS GRAPH COMPARES ACTUAL POWER SUPPLY COSTS, BUDGETED POWER SUPPLY COSTS AND DEPICTS HOW THE POWER SUPPLY ADJUSTMENT REVENUES RECOVER.
THE SECOND QUARTER POWER SUPPLY COSTS ARE 6.2 MILLION BELOW BUDGET AS SHOWN IN THE CONTRAST BETWEEN THE YELLOW AND GRAY BARS.
THE BLUE LINE REPRESENTS BUILD POWER SUPPLY ADJUSTMENT REVENUE, WHICH RECOVERS THE POWER SUPPLY COSTS.
IN ADDITION TO ANY OVER AND UNDER RECOVERY COMPONENT AT THE BEGINNING OF THE PHYSICAL YEAR POWER SUPPLY COSTS WERE UNDER RECOVERED BY 21 MILLION.
WE RESET THE POWER SUPPLY ADJUSTMENT EFFECTIVE NOVEMBER 1ST TO RECOVER ALONG WITH THE FORECAST UNDER RECOVERY FOR JULY THROUGH OCTOBER, THE BLUE LINE ALSO REPRESENTS OUR RATE CHANGE IN NOVEMBER, 2019
[00:20:01]
TO BRIDGE THE GAP TO THE END OF THE SECOND QUARTER, WE HAVE RECOUPED 14.4 MILLION OF THE UNDER RECOVERY, OR YOUR RECOVERY IS CURRENTLY AT 6.6 MILLION.I WAS GONNA ASK, UM, WHAT'S THE EXPLANATION FOR THE LITTLE BUMP IN JANUARY IN BUDGETED BECAUSE IT LOOKS AS THOUGH ACTUAL WHAT WAS TRENDING LOWER, BUT IN THE BUDGET WE HAVE, WE HAD ALLOCATED JUST A LITTLE BIT MORE IN JANUARY THAN DECEMBER AND FEBRUARY.
SO THE, UM, THE GRAY BAR REPRESENTS OUR BUDGETED BASED UPON EXPECTED OR CAUGHT COST.
UM, UM, AS WELL AS, UH, OUR OWN GENERATION.
SO MORE OF THAT THAT'S PROBABLY EFFECTIVE, UM, EITHER, UH, MORE WIND OR LESS WIND SHOWING UP THAT CHANGES THOSE NUMBERS.
THAT'S USUALLY WHAT'S IMPACTING THAT, I THINK.
GOING ON TO PAGE 18, THE CAPITAL IMPROVEMENT PLAN FOR FYI 20 IS 254 MILLION TO DATE.
AUSTIN ENERGY HAS SPENT 122 MILLION OR 48% OF ITS YEARLY BUDGET AT A 50% TARGET.
WELL, SUMMARIES ARE AHEAD OF THEIR SPEND PLAN LIKE TRANSMISSION, DISTRICT COOLING AND DISTRIBUTION OTHER AREAS, OR UNDER THEIR SPEND PLAN, SUCH AS SUBSTATIONS IN GENERAL, THE LARGE UNDERSPEND IN GENERAL IS ASSOCIATED WITH THE DELAY ON OUR ACQUIRING OR BUILDING A NEW WAREHOUSE, WHICH IS AN EFFORT CURRENTLY UNDERWAY PIE CHART TO LEFT, ILLUSTRATES HOW WE FINANCE OUR CAPITAL PLAN WITH CASH DEBT AND CONTRIBUTIONS AND NEDA CONSTRUCTION, WHICH ARE DIRECT PAYMENTS FROM CUSTOMERS THROUGH UTILITY BASE RATES, REFLECT REDUCTIONS FOR THESE CONTRIBUTIONS PAGE 19 IT'S CHART DISPLAYS ALL OF THE COMPONENTS OF POWER SUPPLY COST.
THE 12 MONTHS ENDING MARCH 31ST AND DEMONSTRATES THE VALUE, THE DISPATCHABLE RESOURCES AND PPA IN OUR PORTFOLIO, THE COSTUMER CAUGHT TO MEET OUR RETAIL LOAD 639 MILLION NET REVENUES FROM OUR OWN ASSETS WHERE 261 MILLION WELL NET COSTS ASSOCIATED WITH CONTRACTS AND ASSETS WITH 38 MILLION RETAIL PRODUCTS LIKE GREEN CHOICE AND VALUE OF SOLAR PROVIDED WHEN SHE LAY IN THE REVENUE GENERATING ACTIVITY.
THESE COSTS BY 7 MILLION, THE RESULT IS A NET POWER SUPPLY COST OF 406 MILLION FOR THE PERIOD.
THIS CHART DOES NOT INCLUDE FIXED COSTS ASSOCIATED WITH OUR POWER GENERATION OVERHEAD OR GENERAL ADMINISTRATIVE COSTS AS THOSE ARE RECOVERED IN BASE RATES, NOT THE PSA.
HEY, QUICK QUESTION, MARK THAT 38 MILLION, WHICH I ASSUME IS MAINLY FOR THE RENEWABLE CONTRACTS.
ARE, ARE WE DOING, IS IT GETTING A LITTLE BETTER THAN IT USED TO BE? IN OTHER WORDS, IS IN THE LAST 12 MONTHS, LESS OF A COST THAN, THAN PREVIOUS VERSIONS OF SOME OF THOSE, YOU KNOW, BETTER DEALS HAVE COME ON BOARD OR IS IT KIND OF IN KEEPING WITH, WITH OUR HISTORICAL COSTS? UM, THOSE, UH, THE, THE COST OF OUR CONTRACTS AND ASSETS ARE DOWN CONSIDERABLY OVER THE LAST FEW YEARS.
UM, AS OLDER PPS HAVE ROLLED OFF AS REQUIRED, NEW PPA IS A MUCH MORE COMPETITIVE PRICE.
UM, AND, UH, THE DIVERSITY OF LOCATIONS BETWEEN WIND AND SOLAR ACROSS TEXAS, UM, ENSURES THAT, UH, UM, UH, WE GET A GOOD, UM, GOOD MIX AND PRICING AND GENERATION.
SO, UH, OVERALL ARE PERFORMING MUCH BETTER OVER THE LAST FEW YEARS, GOING TO PAGE 20.
NOW, UP AT THIS POINT, WE PRESENTED TO YOU OUR FINANCIAL RESULTS USING BUDGET, BUDGETARY ACCOUNTING, AUSTIN ENERGY ALSO PREPARES FINANCIAL REPORTS USING GENERALLY ACCEPTED ACCOUNTING PRINCIPLES OR GAP ACCOUNTING.
THE NEXT SECTION PRESENTS OUR GAP FINANCIALS RESULTED FOR THE SECOND QUARTER PAGE 21, OUR MARCH, 2020 COMPARATIVE BALANCE SHEET ON THE LEFT AND CASH RESERVES AND COMMERCIAL PAPERS IS ON THE RIGHT.
AUSTIN ENERGY CONTINUES TO MAINTAIN A STRONG BALANCE SHEET.
WE HAVE OPERATING CASH BALANCES ARE AT 419 MILLION AND OUR ASSETS AND LIBRARIES ARE COMPARABLE INCREASES FOR THE NACADOCIOUS ACQUISITION.
THE RING GRAPH ON THE RIGHT SHOWS, TOTAL WORKING CAPITAL AND RESERVES
[00:25:01]
WERE 705 MILLION AT THE END OF MARCH VERSUS 150 DAY NUMBER 414 MILLION.WE HAVE 202 MILLION IN COMMERCIAL PAPER CAPACITY AVAILABLE WITH AN OUTSTANDING BALANCE OF 73 MILLION AT MARCH, 2020.
HE REFUNDED COMMERCIAL PAPER IN JULY OF 2019 THAT ADDED $284 MILLION TO OUR LIABILITIES.
UM, YOU DON'T SEE THE RESERVES IN THE CASH CAUSE THOSE BELONG IN THE LONG-TERM ASSETS.
HEY MARK, CAN YOU EXPLAIN CAPITAL VERSUS LONG-TERM ASSETS BECAUSE AREN'T CAPITAL ASSETS LONG-TERM ASSETS.
OH, THE RESERVES ARE THAT'S CORRECT.
SO THE, UM, SO WHAT ARE LONG-TERM ASSETS THAT ARE NOT CAPITAL ASSETS? UM, THERE'S SECURITIES, UH, ANYTHING OTHER THAN CASH? UM, UM, IS THIS A LONG-TERM ASSET? YEAH.
GOING TO PAGE 22, THE BALANCE SHEET ON THE LEFT IS AN EXPANDED VERSION, BUT IT REFLECTS THE SAME INFORMATION.
I JUST COVERED WITH YOU THE INCOME STATEMENT ON THE RIGHT SHOWS, A COMPARATIVE 12 MONTHS ROLLING VIEW DECREASE IN OUR OPERATING INCOME IS LARGELY ATTRIBUTED TO THE INCREASE IN COSTS ASSOCIATED NACADOCIOUS YEAR OVER YEAR COMPARABLE ONCE ADJUSTED FOR THE CHANGE IN DEPRECIATION.
NUMBER OF AUSTIN ENERGY CUSTOMERS INCREASED BY 12,647 OR 2.6% OR ENERGY SALES INCREASED 3.2% PAGE 23.
I'M GOING TO COVER A LITTLE BIT ABOUT THE COVID-19 RESPONSE, WHICH OUR CITY COUNCIL PASSED PAGE 24 RECOGNITION OF THE IMPACT THAT COVID-19 IS HAVING ON THE ENTIRE AUSTIN COMMUNITY MAYOR, STEVE ADLER AND THE AUSTIN CITY COUNCIL APPROVED EMERGENCY RELIEF BILLS EFFORTS ON APRIL 9TH, 2020, EACH CHANGES WILL PROVIDE APPROXIMATELY 35 MILLION IN UTILITY BILL RELIEF FOR ELECTRIC CUSTOMERS.
BY THE END OF THIS PHYSICAL YEAR, PAGE 25, WE ESTIMATE ABOUT $35 MILLION IN ELECTRIC BILL RELIEF TO THE END OF THE FISCAL YEAR OR SEPTEMBER 30TH WAY TO EXPECT IT TO REMAIN IN EFFECT UNTIL ADOPTION AND IMPLEMENTATION OF THE FYI 2021 BUDGET.
THESE CHANGES ADDRESS BOTH THE FINANCIAL NEEDS OF OUR CUSTOMERS AND WELLS INCREASED USAGE THAT WE EXPECT TO SEE IN THE RESIDENTIAL CUSTOMER.
ADDITIONAL ASSISTANCE IS PROVIDED TO OUR CAP CUSTOMERS AND TO OTHERS EXPERIENCING FINANCIAL HARDSHIPS OF LOSS OF INCOME.
AND IT ALSO REDUCES THE IMPACT TO OUR RESIDENTIAL CUSTOMERS WHO ARE AT HOME USING MORE ENERGY TO THE STAY HOME OR SAFE, UM, ORDER PAGE 26.
WELL, THE CONCERN WAS, UM, A NUMBER OF MEASURES WHEN WE, UM, RECOMMENDED THIS UTILITY BILL RELIEF.
ONE WAS THAT STRUCTURAL CHANGES TO THE BILLING SYSTEM COULD TAKE 90 DAYS.
SO WE FOCUSED ON ADJUSTING VALUE INPUTS TO OUR EXISTING TIERS AND DISCOUNTS, UM, AND NOT MAKING STRUCTURAL CHANGES.
UH, WE WANTED TO DO SOMETHING WE COULD IMPLEMENT QUICKLY.
WE ALSO IMPLEMENTED, UH, DETAILS, UM, FOR OUR PLUS ONE ENROLLMENT, WHICH WILL CONTINUE TO BE DEVELOPED.
UM, WE CAN, UM, REQUEST FOLLOW UP WITH OUR CUSTOMER CARE FOLKS ABOUT.
PLUS ONE IS A PROGRAM THAT'S ADMINISTERED THROUGH OUR, UM, OUR COMMUNITY PARTNERS TO ASSIST, UH, CUSTOMERS WHO ARE HAVING, UH, TEMPORARY FINANCIAL PROBLEMS. AND WE'VE CONTINUED WITH, UH, NO DISCOUNT, NO, UH, NO DISCONNECTS, NO LATE FEES AND ENHANCED PAYMENT ARRANGEMENTS FOR ALL OF OUR CUSTOMERS, INCLUDING COMMERCIAL EIGHT 27.
SO WE HAVE, UM, UH, FOUR COMPONENTS THAT MAKE UP THE $35 MILLION IN ELECTRIC BILL RELIEF.
UM, WE'VE TRANSFERRED 5 MILLION TO THE PLUS ONE FINANCIAL AID PROGRAM FOR A DISCOUNT PROGRAM.
UH, WE INCREASED THE CAP DISCOUNT FROM 10% TO 15% THAT PROVIDES ONE LAND DOLLARS OF ADDITIONAL RELIEF FOR A CAP CUSTOMERS.
AND WE REDUCE THE REGULATORY CHARGE FOR RESIDENTIAL COMMERCIAL CUSTOMERS NOW, RATHER THAN WAITING UNTIL THE FYI 21 BUDGET.
[00:30:01]
OF ASSISTANCE FOR OUR CUSTOMERS.AND FINALLY, WE SET ALL RESIDENTIAL RATES FOR TIERS FOUR AND FIVE TO THE CURRENT TWO-THREE RATE FOR USE OVER A THOUSAND KWH TO THE INSIDE CITY TIERS FOR INVADE AND TO REDUCE THE PREMIUM PRICING FOR THOSE CUSTOMERS WHO MAY BE USING MORE ENERGY BECAUSE THEY'RE AT STAY-AT-HOME WORK SAFE, UM, ORDER AND MARK THE REGULATORY CHARGES, JUST TO SUMMARIZE THAT THAT'S TO PAY FOR TRANSMISSION AND ERCOT AS WELL AS LIKE, UH, EXPENSES TO PAY FOR ER, OR CATIA ITSELF OR WHAT OTHER CHARGES ARE IN THE RECORD.
THE TORY CHARGE, THE MAIN CHART IS OUR USE OF THE GRID.
SO, UM, THE TOTAL COST, UH, FOR THE, UH, ELECTRIC TRANSMISSION GRID, WE GET ABOUT 4% OF THOSE COSTS.
AND SO THAT'S WHAT THAT CHARGE RECOVERS.
THERE WAS A FEW ADMINISTRATIVE FEES IN THERE FROM RICOTTA AS WELL.
AND MARK, THIS IS CYRUS REED, AND I KNOW THIS WAS CLARIFIED IN COUNCIL CAUSE I WAS WATCHING IT CLOSELY.
BUT THE REDUCTION OF THE RESIDENTIAL RATES IS A TEMPORARY MEASURE THROUGH SEPTEMBER 30TH.
THAT WILL BE REVISITED AS PART OF THE, AS PART OF THE RATE CASE BASICALLY, IS THAT, IS THAT ACCURATE? THE WAY I SET IT? THAT'S CORRECT.
WE WILL HAVE A, UM, UH, UPCOMING BUDGET IN WHICH, UH, WE'LL ADOPT A NEW TARIFF THAT TARIFF, UH, WILL THEN DICTATE WHAT WITH THE RATES AND RATE STRUCTURES WILL BE FOR FYI 21.
UM, AND SO IF THEY ADOPT THAT RATE TARIFF, THAT WOULD REVERSE THE RATES BACK TO WHERE THEY WERE PRIOR TO THE SUBMIT, THERE'LL BE THE FIVE TIERS.
UH, THIS IS A NOT UNUSUAL EVENT, THIS $35 MILLION WILL THAT BE IN ANY WAY ADJUSTED WHEN THE RIGHT CASE COMES IN, BECAUSE THIS IS OUR TEST HERE, IS IT NOT? UM, FYE 19 WAS OUR TEST YEAR.
AND, UM, THE REGULATORY CHARGE THAT LAW, THE LARGEST COMPONENT THAT TWENTY-FIVE LAND WE WOULD HAVE, UM, ADJUSTED THAT RATE AND THE FYI 21 BUDGET, UM, AND RETURNED IT OVER 12 MONTHS.
WHAT WE'RE DOING HERE IS WE'RE JUST ACCELERATING THAT WE REDUCED THE RATE NOW AND WE'RE GIVING IT BACK BETWEEN NOW AND THE END OF THE FISCAL YEAR.
SO A LITTLE MORE HELP, UH, UPFRONT FROM THAT.
THERE SHOULD BE, THERE SHOULD BE NO IMPACT TO FUTURE RATES, A RESULT OF THAT.
AND SO, MARK, CAN YOU EXPLAIN THAT JUST ONE MORE TIME FOR ME, THE 25 MILLION REDUCTION IN THE REGULATORY CHARGE THAT'S THAT'S BECAUSE WE ACTUALLY EXPECT, OR WE HAVE ALREADY OVER RECOVERED FOR THE REGULATORY CHARGE WE EXPECTED TO OVER, OVER RECOVER, OR WE ALREADY HAVE OVER RECOVERED.
SORRY, I DIDN'T UNDERSTAND WHAT YOU WERE SAYING.
WE WERE ALREADY OVER RECOVERED.
UM, AND WE WERE ANTICIPATING REDUCING THAT IN F Y 21.
AND SO RATHER THAN WAIT UNTIL THE BUDGET CYCLE, WE WENT AHEAD AND REDUCED THE RATE NOW AND WE'RE GIVING IT BACK BETWEEN NOW APRIL 9TH AND THE END OF THE FISCAL YEAR.
SO, UM, IT PROVIDES MORE ASSISTANCE TO OUR CUSTOMERS UPFRONT RATHER THAN WAITING FOR FY 21.
SO MARK SAYS, CARRIE, UM, I WANT TO BEAT THIS TO DEATH, BUT I'M TRYING TO MAKE SURE I UNDERSTAND IT.
SO THE 25 MILLION IS BASICALLY A, A, YOU KNOW, IT'S, IT'S A RESERVE THAT WE'RE SPENDING NOW, INSTEAD OF REFUNDING IT OVER THE FOLLOWING YEAR, UH, I KIND OF GET THAT, UM, THE REST OF THIS, WHAT WILL BE THE, THE NET FINANCIAL IMPACT ON THE UTILITY AND WHAT WILL IT, WHAT WILL BE THE IMPACT ON OUR ABILITY TO MAINTAIN THE SAME, UH, TRANSFERS THAT WE'VE HAD IN THE PAST TO THE, TO THE GENERAL BUDGET? WELL, BOTH THE 5 MILLION, UM, TWO R PLUS ONE THAT COMES FROM OUR CUSTOMER ASSISTANCE, UH, PROGRAM FUNDING, WHICH IS OVER COLLECTED, UM, SNAP RESERVE THAT WE'VE BEEN KICKING AROUND FOR SEVERAL MONTHS.
ANYWAY, THAT'S CORRECT THE A $1 MILLION OF INCREASE IN THE CAP DISCOUNT, UM, UM, THAT, THAT, THAT MAY HAVE AN IMPACT ON OUR FINAL, UM, CAP BALANCE, BUT WE'LL SEE THAT TOWARDS THE END OF THE YEAR AND THE $4 MILLION IS FOREGONE REVENUE.
UM, THAT, UM, AS YOU KNOW, WE, WE OVER COLLECT IN TIERS FOUR AND FIVE, UM, SO THAT WE CAN GIVE DISCOUNTS IN TIERS ONE AND TWO.
SO THAT REMOVES THAT OVER COLLECTION.
SO THAT WILL BE A REDUCTION IN REVENUE THAT WE EXPECT.
[00:35:01]
CONDITIONS WOULD BE ABOUT $4 MILLION SEED INTO THE YEAR.SO GOING PAGE 28, UH, WE CONTINUE TO MONITOR THE IMPACTS OF THE COVID-19 PANDEMIC ON OUR CUSTOMERS.
UM, WE'RE MONITORING OUR CUSTOMER'S CONSUMPTION BY CLASS, UNDERSTAND THE IMPACTS.
UM, WE'RE ALSO MONITORING OUR BOND COVENANTS.
SO I THINK HE'S RACING TO, WE HAVE TO REMEMBER THAT, UM, UH, UH, WE HAVE A LEGAL REQUIREMENT AND THAT OUR RATES HAVE TO SET TO COVER 1.5 TIMES OR A DEBT, WHICH WE ARE, UM, WHICH WE ARE COVERING WITH OUR PARTNER AGENCIES TO ADDRESS IMMEDIATE AND ONGOING CHALLENGES TO ENROLL MORE PARTICIPANTS, TO TAP ONE PLUS ONE PROGRAM.
AND WE'RE ALSO PROVIDING SOME FLEXIBILITY ON THE QUALIFICATIONS FOR OUR CUSTOMERS WHO HAVE COVID-19 RELATED NEEDS.
UM, AND SO WE'RE WORKING AT SHORE, OUR CUSTOMER CARE GROUP.
AND WITH THAT, THAT IS THE END OF MY SECOND QUARTER REPORT.
ANY QUESTIONS FOR MR. DOMBROSKI? OKAY.
I JUST WANTED TO SAY THANK YOU FOR THE EFFORTS IN COVID-19 AND THANKS FOR, UM, DOING A GREAT JOB OF KEEPING THE ENERGY FLOWING IN THE TIME WHEN WE REALLY NEED IT IN OUR COMMUNITY.
SAY THAT AGAIN? I JUST SAID I'M HANDING IT BACK OVER TO YOU, CARRIE.
[9. 2nd Quarter Operations Briefing]
NINE NOW.UH, THE SECOND QUARTER OPERATIONS BREATHING, UH, IS CHARLES ON THE PHONE? I AM.
CAN YOU HEAR ME HERE? I CAN'T.
SO ONE WAY, HELLO TO YOU, MR. CHAIR, MEMBERS OF THE COMMISSION, CHARLES DICKERSON, CHIEF OPERATING OFFICER AT AUSTIN ENERGY.
UH, I GUESS CTM WILL BE PUTTING THE SLIDE DECK UP.
YOU CAN GO TO SLIDE TWO AND I NOTICED A SLIGHT DELAY.
SO THIS IS THE GENERAL AGENDA THAT I'VE BEEN USING AND WE'RE GOING TO COVER SAFETY.
UM, OUR DELIVERY PERFORMANCE, OUR CARBON FOOTPRINT, UH, POWER PRODUCTION, OUR ONSITE ENERGY RESOURCES AND THE FUTURE STATE, WHICH TECHNICALLY I'M GOING TO RENAME THAT FOR THIS BECAUSE IT'S MORE LIKE OLD SCHOOL CAR, NEXT SLIDE.
SO I DON'T KNOW IF IT'S A MATTER OF SHOWING DIFFERENT ON THE TELEVISION, BUT THE NEXT LOT IS JUST OUT SPRING TO YOU AS A STANDARD MESSAGE.
AGAIN, WE START ALL OUR MEETINGS AT OFTEN ENERGY OR MAKE A, UM, A VERY, VERY, UM, STRONG ATTEMPT TO START OFF ALL OUR MEETINGS WITH A SAFETY DISCUSSION.
AND SO IN THE NEXT LODGE, YOU'LL SEE, UM, ON THE STATE TO SLIDE THAT OUR NEAR MISSES ARE DOWN, UH, UM, Q1 TO Q2.
UM, YOU'LL SEE THAT OUR TOTAL INJURIES ARE DOWN, UH, RECORDABLE CASES REMAIN ABOUT THE SAME AND OUR VEHICLE ACCIDENTS HAVE GONE UP.
AND WE'RE CONTINUING TO LOOK AT WHAT'S CAUSING THAT.
WE STILL STRUGGLE WITH HITTING THESE FIXED OBJECTS, UH, AND SOME BACKUP ISSUES WE'VE MISSED INTO TO SOME POLICIES WHERE TWO PEOPLE ARE MORE IN THE TRUCK.
ONE HAS TO GET OUT AND BACK THE OTHER ONE'S UP.
I SAID, WE CONTINUE TO WATCH THAT.
UH, AND SOMEBODY, UM, BEF WARRANTS, THE NEXT WAS ON NOT NECESSARILY JUST US HITTING FIXED OBJECTS, BUT IN SOME INSTANCES IT COULD BE ON PEOPLE, COAG WITHOUT TRUCKS.
AND IN THAT CASE, WE LIST THEM AS RECORDABLE, BUT WE STILL CONTINUE TO PUT A STRONG EMPHASIS ON SAFETY AND CONTINUE TO MANAGE THAT.
THE GOOD NEWS IS THAT THE NEAR MISSES IN TOTAL INJURIES, UH, TRENDING DOWN NEXT SLIDE PLEASE.
THIS IS THE COMMERCIAL AVAILABILITY, UH, AND BASICALLY THE DELTA BETWEEN THE TARGET AND THE ACTUAL JUST REFLECTS, UM, MAINTENANCE AND FUELING OUTAGES THAT ARE TYPICAL FOR THIS PERIOD.
UH, THIS WOULD HAVE BEEN WHAT WE WOULD HAVE CONSIDERED IF SHOWED A PERIOD OR A LOW, LOW PERIOD.
AND THIS IS GENERALLY WHEN WE WOULD HAVE HAD OUTAGES, SO THAT AVAILABILITY, UM, ACTUAL, RELATIVE TARGETED IS
[00:40:01]
CONSISTENT WITH THAT NEXT SLIDE.SO NET GENERATION AND LOAD ANALYSIS, UH, THIS IS A FULL CARD.
THE SLOT, I THINK THE KEY TAKEAWAY FROM THIS SLIDE IS IN THE UPPER RIGHT-HAND CORNER.
YOU'LL SEE THAT, UH, OUR CITIZENS, UH, CONSUME, UH, APPROXIMATELY 6.2 GIGAWATT OUT TO GENERATION, UM, WHILE WE GENERATE IT, UM, APPROXIMATELY 6.1.
SO, UM, AROUND IT, THAT'S ABOUT A NET DIFFERENCE OF ABOUT 66 GIGAWATT HOURS, WHICH MEANS THAT WE CONSUMED A LITTLE BIT MORE THAN WE GENERATED.
UM, AND THROUGH ALL THE GOOD WORK THAT DEB AND HER TEAM DOES, WE CONTINUE TO TRY TO GET PEOPLE TO REDUCE DEMAND.
UH, BUT THIS IS NOT A BAD GUY IN THE LOWER RIGHT-HAND CORNER.
YOU'LL SEE THAT OUR RENEWABLES, AS A PERCENTAGE OF CONSUMPTION FOR THE PERIOD, UM, WAS 42%.
AND, UM, THAT THAT'S, THE SYSTEM WILL PROBABLY THE WINDS BLEW OR HOW THE SUNSHINE ON WE SHINE, BUT, BUT THE ABSOLUTE NUMBER OF RENEWABLES REMAIN THE SAME.
THIS IS JUST A RELATIVE NUMBER TO HOW MUCH RENEWABLES GENERATION, THAT'S WHAT PERCENTAGE OF WHAT WE CONSUME NEXT LOT.
AND WHILE COMMISSIONER HAT, AND I THANK YOU FOR YOUR TIME, WORRIED ABOUT US, KEEPING THE ELECTRICITY FLOWING WE'RE DOING IT.
THIS SLIDE STILL IS ONE THAT WE'RE WORKING TO, UM, CHANGE, UH, WE'RE BELOW THE TARGET, WHICH BY THE WAY I REPORTED IN PREVIOUS QUARTERLY UPDATES, WE'LL SET A VERY HIGH BULK WEALTH ITSELF.
AND, UH, OUR TARGET WITH A HABIT SET TOP THAT FALL ON, WHICH IS EXTREMELY HIGH.
WE ARE CURRENTLY A SECOND QUARTER HALL IN ALL THREE MEASURES.
UM, AND WE NEED TO THINK THROUGH IF TOP DECILE THE RIGHT PLACE TO BE ONE, WE SAID, WELL, WHY NOW, WHY WOULD YOU NOT WANT TO BE THERE? UH, IT COSTS A LOT, A LOT OF CAPITAL ON TO GET TO TOP THAT'S ALL, UH, AND THAT CAPITAL MAY BE BETTER DEPLOY IN OTHER AREAS OF THE BUSINESS.
UH, HOWEVER, THERE'S A LOT OF ROOM FOR IMPROVEMENT BETWEEN FIRST AND SECOND COURT FOUL.
I'M NOT CERTAIN THAT THAT'S OFF SHOULD STILL BE THE GOAL.
AND WE'RE GOING TO BE LOOKING AT THAT WITH MY TEAM AND OTHERS AND GETTING INPUT, UM, AT THE END OF THE DAY, THE PRINCIPLE CONTRIBUTORS TO WHAT WE'RE FACING, UH, VEGETATION ISSUES AND, UM, SOME EQUIPMENT FAILURES, UM, WELL STANDING EQUIPMENT THAT WE NEEDED TO CONTINUE TO WORK MORE ON.
AND IN SOME INSTANCES, VEGETATION CAN CAUSE EQUIPMENT FAILURES.
UM, SO WE'RE CONTINUING TO LOOK AT WHAT WE MIGHT BE ABLE TO DO TO ADDRESS THE FREQUENCY OF OUTAGES AND THE SPEED WITH WHICH WE GET CUSTOMERS RESTORED.
UH, ARE YOU HAVING ANY ISSUES WITH YOUR CONTRACTOR THAT IS, I DON'T KNOW WHETHER YOU'RE USING ESPOLON OR DAVEY OR WHO YOUR, A VEGETATION MANAGEMENT OUTFIT IS, BUT ARE YOU HAVING ANY PARTICULAR ISSUES THERE? OH, NO, SIR.
THIS IS JUST A MATTER OF, YOU MAY REMEMBER WE WERE REPORTING MAYBE TWO OR THREE QUARTERS AGO THAT WE CHANGED OUR VEGGIE PRODUCTS UP SO THAT WE WOULD BE ABLE TO GET BETTER CLEARANCES FOR QUITE A LONG TIME.
THE CLEARANCE THAT WE WERE USING WERE NOT OPTIMUM.
THEY WERE NOT BEST PRACTICE BY ANY STRETCH OF IMAGINATION.
IT WAS HARD TO KEEP UP AND GIVEN COMEDY, THE DROUGHT AND GET HEAVY RAIN SITE, WAS IT, AUSTIN CAN EXPERIENCE, YOU CAN GO THROUGH A PERIOD OF SLOW GROWTH AND THEN JUST TREES WITH NO BLOCKS, NO MOUNTAIN GETTING CLOSE, UM, TO, UM, CABLES AND CONDUCTORS.
SO IT'S NOT SO MUCH AN ISSUE WITH THE CONTRACTORS.
IT'S JUST THE WAY WE WERE TRIMMING THE TREES.
UH, WE, WE WAS MANAGING THE VEGETATION, OUR ABILITY TO GET ON PEOPLE'S PROPERTY.
THEN NOW THE AMOUNT OF NOTICES THAT WE WERE HAVING TO GENERATE IN ORDER TO CLEAR LINE.
SO WE'RE WORKING THROUGH THAT, BUT NO PROBLEMS WITH THE CONTRACTORS IN AND OF THEMSELVES.
HAVE YOU HAD PARTICULAR FEEDERS THAT ARE REPEATERS AS PROBLEMS HERE? YES.
SO WE HAVE A METRIC THAT WE KEEP CALLED THE 10 WORST PERFORMANCE FEEDERS.
UM, AND WE LOOK AT THOSE IN TWO THINGS THAT WE LOOK AT IT TO MAKE CERTAIN THAT, UM, FEED IS DON'T WITH PETE ON THAT LIST.
I DON'T HAVE THAT LIFT INITIAL REPORT.
I CAN ADD IT IF YOU LIKE APACHE THINK IT WOULD BE A GOOD ADD.
UM, AND WE HAVE HAD AN OCCASION IN THE PAST WITH FEED AND MAY HAVE SHOWN UP ON THAT LEFT.
UH, WE CONTINUE TO PUT TOGETHER THE ENGINEERING ANALYSIS TO DETERMINE WHAT IS THE BEST COST OPTION TO INCREASE YOUR LIABILITY FOR THE TRIPLE FETUS.
[00:45:01]
YEAH.CHARLES, I'D LIKE TO SEE THAT LIST.
DID I ANSWER YOUR QUESTION? YES, YOU DID.
UM, SO I HAVE A QUESTION FOR THE COMMISSION IS WE'VE SLOWED THE PREVIOUS LOT, OR THIS IS A NEW VIEW.
UM, I LIKE THIS VIEW ACTUALLY A LITTLE BIT BETTER.
I WAS WONDERING IF YOU ARE OUT OF PREFERENCE, I'M NOT GOING TO, I'M NOT GOING TO SHOW BOTH AFTER THIS MEETING BECAUSE THEY'RE BASICALLY SAYING THE SAME THING.
I LIKE BOTH BECAUSE YOU CAN SEE THE TREND AS WELL AS THIS, AND THIS DOES GIVE A FAIR ASSESSMENT OF WHAT ARE THE TOP CORE TILE, OUR BETTER THAN 10,000 YOU'RE SHOOTING FOR THE DESKTOP.
I'LL KEEP BOTH NOW REMEMBER AGAIN RIGHT NOW, TOP DECILE, WHO WE SHOOTING FOR, BUT I'M NOT CERTAIN MOVING FORWARD.
THAT'S PROBABLY THE BEST USE OF RESOURCES.
AND THEN COMING BACK BEFORE JACKSON, PROBABLY BY NEXT QUARTER'S REPORT.
NEXT SLIDE FOR THE NEXT TWO SLIDES.
WE CAN SAY SOME TERMS. IF EVERYBODY WOULD PLEASE USE YOUR SELF, I THINK THAT'LL CLEAR UP.
SO THIS IS RENEWABLE GENERATION.
IT'S A PERCENTAGE TO LOAD, UH, AND AGAIN, WITHOUT GOING INTO TOO MUCH, UM, IN THE PAST SIX MONTHS, UM, SO FOR 2020 MARCH WAS THE HIGHEST SOLAR GENERATING ON PERIOD.
UH, AND BASICALLY THIS IS JUST A RATIO.
IT LOOKS AT HOW MUCH, UH, LOW WE HAVE, AND IT LOOKS AT WHAT ABOUT OUTPUT OF OUR CONTRACTED ASSETS.
UH, AND WE DON'T, WE DON'T CONTROL THIS, UH, AS MUCH AS THIS IS CONTROLLED BY NATURE.
SO IF THE SUN IS SHINING, UH, AND WE HAVE A CERTAIN LOAD IN THE SUNSHINE AND A LOT, THE PERCENTAGES WILL GO UP IF YOU HAVE THE SAME LOAD AND THE SUN'S NOT SHINING AS MUCH, AND THE WIND IS NOT BLOWING AS MUCH, AND IT'S A PERCENTAGE IT'LL GO DOWN.
UM, BUT YOU COULD JUST SEE KIND OF HOW THAT PERCENTAGE MOVES WITH THE SEASONS.
THE ONE THING ABOUT THIS GRAPH THAT YOU CAN NEVER SPECIFICALLY KNOW IS A GOOD SOLO GONE UP OR DOWN.
I MEAN, I CAN REPORT IT, JUST LOOKING AT IT.
IT'S NOT INTUITIVE WITH THE LOAD CHANGING, BUT NEEDLESS TO SAY, UM, APRIL WAS A HIGH MONTH, UH, IN 2019, UH, IN JANUARY AND MARCH JEWISH YEAR, UH, HAD BEEN PARTICULARLY GOOD AS A PERCENTAGE OF LOAD.
AND WE ANTICIPATE THAT WITH THE COMMON SUMMER MONTHS, BUT TYPICALLY WITH THE PROJECTED HEAT, UM, THAT WE'RE GOING TO HAVE A HIGHER PERCENTAGE OF LOAD BASED THIS OFF THE SOUL ITSELF.
MY DELAY WAS A LITTLE LONGER, SO THIS IS THE CELL, UM, DISTRICT COOLING.
UM, SO DISTRICT COOLING PLAN IS ON TARGET FOR COMPLETION BY DECEMBER OF THIS YEAR.
UM, AUSTIN COMMUNITY COLLEGE ON TARGET FOR COMPLETION ON SECOND QUARTER.
SO OF GREENS IS ALL THE THINGS HERE ON TARGET.
WE HAVE NOT EXPERIENCED ANY SIGNIFICANT DELAYS FROM OUR CONTRACTORS.
WE'LL WORK ON IT AS A RESULT OF WHAT'S GOING ON WITH COVID.
UH, WE CONTINUE TO MANAGE THROUGH THIS, UM, AND, AND MOVE THINGS ALONG NEXT TWO SLOTS.
HEY CHARLES, JUST A QUICK QUESTION.
ALL THOSE ARE PURE ELECTRICAL LOAD AREN'T THEY THERE'S NO REMOTE DISTRIBUTED GAS GENERATORS INCLUDED IN THAT.
WHICH PAGE ARE YOU? ARE YOU ON THE SLIDE WITH DISTRICT COOLING IN THE 14, PLEASE? YEAH.
COULD YOU ASK YOUR QUESTION AGAIN? I'M NOT CERTAIN, I QUITE UNDERSTOOD IT.
YEAH, BECAUSE THERE WERE SOME CONFUSING CONVERSATIONS THAT SOME COLLEAGUES OF MINE WERE HAVING WITH ME ABOUT, UM, SOME DISTRICT COOLING, MAYBE HAVING SOME GAS GENERATION.
AND SO I JUST WANTED TO UNDERSTAND THOSE THAT YOU HAVE LISTED ON PAGE 14.
THOSE ARE ALL JUST ELECTRICAL LOADS.
THEY'RE NOT LIKE USING NATURAL GAS IN ANY WAY, ARE THEY? WELL, THAT QUESTION MAY BE A LITTLE BIT, LET, LET ME EXPLAIN IT THAT THE PURPOSE OF ALL OF THESE PROJECTS IS TO OFFSET ELECTRICAL LOAD.
[00:50:01]
UM, IF YOU'RE, IF THAT'S YOUR QUESTION, THAT'S THE ANSWER I DIDN'T GET PURPOSE THROUGH.NOW, THE QUESTION IS HOW ARE WE ABLE TO ACHIEVE THAT? WE'RE ABLE TO ACHIEVE THAT BY PULLING ENERGY OFF THE GRID TO POWER.
OUR CIL WAS IN OUR INFRASTRUCTURE AT NIGHT SO THAT WE CAN BE ABLE TO DO COOLING DURING THE DAYTIME.
SO WHEN AN ENERGY COMES FROM, IT'S JUST COMING FROM A GREATEST AND MIX OF ALL THE RESOURCES CONNECTED TO HER CAR AT NIGHT ON THE GRID, RIGHT.
SO WE DO NOT HAVE A DEDICATED GAS TURBINE IN ORDER TO MAKE THIS WORK.
THAT'S NOT, IF THAT WAS THE QUESTION, THE ANSWER IS NO.
SO, UM, BASICALLY THE SCORE CARD DIRECT STATUS, WE CONTINUE TO SHOW, UM, RED, UH, BECAUSE MY COMMITMENT WAS ONCE WE, WE WOULD NOT CHANGE THIS UNTIL WE CLOSED THE PLANT DOWN.
HOWEVER, I DON'T HAVE A SLOT ON IT, BUT WE HAVE ALREADY BEGUN TO IMPLEMENT, UH, THE LOAD SHIFTING BY AT THE, UM, THE ENVIRONMENTAL DISPATCH ADDER, UH, TO FED AND WE SEEN POSITIVE RESULTS ALREADY.
UM, SO WE HAD DEBATED INTERNALLY WHETHER OR NOT TO MOVE THIS FROM, UM, RED TO AMBER, BUT BECAUSE I COMMITTED TO NOT MOVE IT UNTIL WE ACTUALLY CLOSED DOWN A PLANT, WE'RE GOING TO KEEP IT AT RED, BUT WE ARE SEEING POSITIVE IMPACTS FROM THE STRATEGY THAT WE OFFERED, COLLECT THE, WE CAME UP WITH AND GOT APPROVED AS A PART OF THE GENESIS LEAD GENERATION RESOURCE PLAN.
WELL, THAT'S GOOD NEWS AND EFFORT INTO THAT, UH, THROUGH THE STAFF.
AND I'M, I'M GLAD TO HEAR YOU'RE GETTING POSITIVE RESULTS.
UM, ONE OF THE COMMITMENTS IN THE GEN PLAN IS THAT, UM, ONE OF THE, UM, THE STEAM GENERATORS HAS DECOROUS WOULD COME DOWN LIKE ONE, I THINK ONE OF THEM BY THE END OF THIS YEAR, AM I RIGHT? AM I GETTING MY NEXT YEAR? IT MIGHT BE JUST ONE.
UM, ARE THERE GOING TO BE REPOSITIONING HOW THAT'S GOING AND IF UP THAT YOU NEED TO DO, UM, OR WE CAN, WE EXPECT, YEAH, IT'S OBVIOUS WE CAN HAVE THAT INCLUDED, BUT WE WERE STILL ON TARGET TO ONLINE THAT POINT, UM, TOWARD THE END OF THIS YEAR.
CAN YOU NOT HEAR ME? I HEAR YOU.
DID I ADDRESS YOUR QUESTION? YES, YOU DID.
UM, LET'S MOVE ON NOW TO I THANK YOU CHARLES.
[10. Discussion and possible action regarding the Climate Emergency Resolution Working Group [Resolution No. 20190808-078]. (Wray, Hadden)]
TO ITEM 10.UH, KAREN, I HAD THIS ON HERE FOR YOU.
YOU HAVE ANY, ANYTHING NEED TO UPDATE US ON ORDINARY CLIMATE EMERGENCY RESOLUTION, UH, WORKING GROUP NOW THAT THIS TIME.
[11. Officer Elections]
ITEM 11 IS OFFICER ELECTIONS.UM, UH, SO LET ME VOLUNTEER THAT I, I, UH, AM READY TO, UH, END OVER THE RAINS NO LONGER SERVE AS, AS CHAIR.
AND, UM, UH, I WOULD, UH, LIKE TO, UH, PUT IN A RECOMMENDATION IN NOMINATE MARTY HOPKINS TO BE A CHAIR, UM, FOR THE UPCOMING YEAR.
UH, SHE'S DONE A GREAT JOB AS A VICE CHAIR AND HAS BEEN EXTREMELY HELPFUL FOR US.
UH, AND I THINK IT'S A KIND OF A NATURAL SUCCESSION TO, UH, BRING PEOPLE ALONG AS VICE CHAIR AND THEN, AND THEN CHAIR.
SO, UM, THAT'S MY NOMINATION, BUT THE FLOOR IS OPEN FOR ANYONE ELSE TO NOMINATE AS WELL.
I WOULD SECOND YOUR NOMINATIONS MARTY WOULD, WOULD DO A GOOD JOB AND IT MAKES SENSE TO ME, BUT IF OTHERS HAVE OTHER IDEAS, BUT I WOULD SECOND YOUR NOMINATION.
THAT BEING THE CASE IT'S FOISTED UPON MARTY.
UH LET'S UH, I GUESS, UH, UH, SAY IF ANYONE OBJECTS, WHAT ELSE? OH, I'M SORRY.
I WAS JUST SUGGESTING ABOUT THAT.
[00:55:01]
THAT YOU WERE GOING TO DO CONSENSUS.I'LL JUST GO AHEAD AND CALL THE ROLES.
I RACHEL STONE, DAVE, TOTAL, MATT WELDON, AND STEFAN DIDN'T JOIN US DATING.
WELL, MARTY, YOU ARE THE CHAIRS STARTING AT THE NEXT MEETING.
UM, WE NEED TO, UH, HAVE NOMINATIONS NOW FOR A VICE CHAIR, UH, TO HELP YOU, UM, AND, UM, UH, THE FLOOR IS OPEN FOR THAT.
UM, I AM LOOKING FORWARD, UH, HAVE, UH, BIG SHOES TO FILL.
UM, AND WITH THAT, I WOULD LIKE TO PUT FORWARD DAVE PUDDLE AS, UM, MY NOMINATION FOR VICE-CHAIR IS, UM, WELCOME TO OTHER, UH, NOMINATIONS AS WELL, OF COURSE, BUT THAT'S, UH, DAVE, IF THAT'S ALL RIGHT WITH YOU, I NOMINATE YOU.
THE FLOOR IS STILL OPEN FOR OTHER NOMINATIONS.
IF ANYONE WOULD LIKE TO MAKE ONE, IS THERE ANYONE ELSE WHO'S SEEKING THAT OFFICE? PARDON ME? IS THERE ANYONE ELSE SEEKING THAT NOMINATION? WELL, THAT'S, THIS IS THE OPPORTUNITY TO SEEK IT RIGHT HERE.
UH, IN THAT CASE, I'LL, UH, SAY NOMINATIONS ARE CLOSED, UM, AND I'LL CALL THE ROLE FOR, UH, DAVE TUTTLE'S AS, UH, VICE CHAIR CARRY FOR A CHILL.
SO DAVE, LOOK FORWARD TO WORKING WITH YOU.
ANYONE KNOW WHO THAT IS? UM, ALL RIGHT.
UH, OFFICER ELECTIONS ARE DONE.
[12. Report regarding City Council action on items previously reviewed by the EUC.]
TO COUNCIL ACTION REGARDING, UM, PREVIOUS, UH, ACTIONS BY THE EUC THAT WAS DISTRIBUTED ON HIM.UH, I HAVE A CALL USER ON THE TWO OH TWO FOUR NINE SEVEN NUMBER.
YOU'RE NOT MUTED AND I THINK THAT'S WHAT WE'RE HEARING.
UM, SO IF ANYBODY HAS ANY QUESTIONS ABOUT THAT, UH, SPEAK UP NOW, IF NOT, WE'RE GOING TO MOVE ON, UH, FUTURE AGENDA
[13. Discuss potential future agenda items.]
ITEMS. OKAY.UH, ANY RECOMMENDATIONS FOR THE NEXT MEETING? SO, SO ONE THAT WAS RAISED, UM, PREVIOUSLY, AND AGAIN, I DON'T KNOW THE TIMING OF IT IS WE HAD A PRESENTER TALKING ABOUT WHAT IS AUSTIN ENERGY PLANNING FOR THEIR NEW HEADQUARTERS IN TERMS OF, YOU KNOW, BELLS AND WHISTLES AND ENERGY EFFICIENCY.
AND I DIDN'T KNOW WHAT, YOU KNOW, I DON'T KNOW WHAT, WHERE WE ARE IN THE TIMING OF THE NEW HEADQUARTERS, BUT IT'D BE NICE TO HAVE A PRESENTATION ABOUT THE NEW HEADQUARTERS AND WHAT THEY'RE DOING IN REGARDS TO, YOU KNOW, FEATURES OF THE GREEN, GREEN BUILDING FEATURES, ET CETERA.
UM, MY, MY UNDERSTANDING IS THAT EVERYBODY'S JUST GOING TO WORK FROM HOME NOW.
UM, ANY OTHER ITEMS MR. CHAIRMAN I'D LIKE TO, WELL, MR. OUTGOING CHAIRMAN, I'D LIKE TO BE SURE TO THANK JOSEPH, UH, THE CLERK'S OFFICE, ALL THE STAFF AT THE CLERK THAT HAS ASSISTED US WITH THIS MEETING AND OUR CTM REPRESENTATIVE AS WELL.
WE REALLY APPRECIATE ALL THEIR MAKE THIS UP.
[01:00:01]
I THINK IT'S REMARKABLE THAT WITH THE NUMBER OF BOARDS AND COMMISSIONS, THAT THE CITY CLERK HAS BEEN ABLE TO ACCOMMODATE ALL THESE ONLINE MEETINGS.AND IF YOU LOOK AT OTHER CITIES, LIKE I DO, A LOT OF THE OTHER CITIES HAVE JUST CANCELED ALL THEIR MARCH AND APRIL CITY COMMISSION MEETINGS.
SO IT IS TO, TO AUSTIN FOR NOW, YOU KNOW, FOR KEEPING THINGS GOING, THANK YOU WILL HAS, UM, HAS ITEMS FOR, UH, THEY'D LIKE TO, UH, RECOMMEND FOR THE NEXT MEETING, PLEASE FORWARD THEM TO MARTY HOPKINS.
CARRIE HAD, UH, I THINK HAD BEEN A VERY PRODUCTIVE YEAR.
I APPRECIATE EVERYTHING CONTRIBUTIONS.
THANK YOU, JEFF, FOR ALL YOUR, UM,