[00:00:29]
AND HI, STEVE,[Call to Order]
I'M GOING TO GO AHEAD AND CALL THIS MEETING TO ORDER, UH, UNLESS LIKE COOL.I'M THE VICE CHAIR OF THE AUSTIN ENERGY OVERSIGHT COMMITTEE.
AND TODAY IS WEDNESDAY AUGUST TEAM.
WE ARE MEETING VIRTUALLY AND IT LOOKS LIKE WE HAVE ONE, TWO, THREE, FOUR, FIVE, SIX FOLKS HERE.
CURRENTLY IS MADLAR COUNCIL MEMBER MATERIA, THAT'S MEMBER ELLIS FOR 10 BARS.
THAT'S THE NUMBER ALTAR AND WAS TRULY THE HOST CHAIR.
I WILL GO AHEAD AND ASK, DO WE HAVE ANY FOLKS? I DON'T, I DON'T THEIR STAFF.
I DON'T HAVE ANY INFORMATION ABOUT WHETHER WE HAVE SPEAKERS TO HEAR FROM, FROM THE COMMUNITY.
I DO NOT SEE ANY SPEAKERS ON THE LINE.
[1. Approve the minutes of the June 1,2020 meeting of the Austin Energy Utility Oversight Committee.]
SO WE WILL MOVE NOW TO, UM, APPROVAL OF THE MINUTES.AND DO I HAVE A MOTION OR WHAT FIRST? ANY CHANGES OR CORRECTIONS TO THE MINUTES? AND I'M GOING TO TRY A GALLERY VIEW HERE TO SEE IF I CAN SEE EVERYBODY.
COUNCIL MEMBER ALTAR AND CONSTABLE CASAR HAS NOW JOINED US AND WE HAVE APPROVAL.
WE HAVE AN APPROVAL AND IT LOOKS LIKE COUNCIL MEMBER ENTRY AT A SECOND.
DOING THAT COLIN FAVOR SHOWING ME YOUR HANDS.
THAT LOOKS LIKE THAT IS A 700 VOTE.
UM, JUST FOR THE RECORD, THE CHAIR COUNCILOR CIOBO WILL BE JOINING US AS SOON AS SHE CAN GET HERE FROM THE POLICE PENSION BOARD.
AND I HAVE LATE LORD THAT HAS SOME, HER KITCHEN WILL NOT BE WITNESSED.
MAYBE I CAN GET AN AGENDA IN FRONT OF ME.
UM, SOMEBODY WANT TO TELL ME WHAT THE NEXT ITEM NUMBER IS? HERE WE GO, BECAUSE WE'RE GOING TO MOVE ON TO, I GUESS IT WILL BE THE
[2. General Manager's report]
GENERAL MANAGERS REPORT IS JACKIE SERGEANT VOCALS.CAN YOU HEAR ME? YEAH, WE SURE CAN.
UM, VICE CHAIR AND COMMITTEE MEMBERS.
I'M JACKIE SERGEANT I'M AUSTIN ENERGY'S GENERAL MANAGER TODAY.
IN ADDITION TO MY GENERAL MANAGER OF REPORT, OUR ACTING CHIEF FINANCIAL OFFICER REF RUSTY MANIAS.
I WILL BE PRESENTING THE THIRD QUARTER FINANCIAL BRIEFING AND DEPUTY GENERAL MANAGER AND CHIEF OPERATING OFFICER CHARLES DICKENS DICKERSON, OR PRESENT THE THIRD QUARTER OPERATIONS BRIEFING ALONG WITH AN UPDATE ON THE DECKER DECKER WORKFORCE ACTIVITIES.
I WANT TO START TODAY WITH AN UPDATE ON OUR PLUS ONE ASSISTANCE PROGRAM.
AS YOU MAY RECALL, ON APRIL 9TH, THE CITY COUNCIL PASSED AN ORDINANCE TO ENSURE CUSTOMERS EXPERIENCE HARDSHIPS DUE TO COVID-19 AND GET IMMEDIATE UTILITY BILL RELIEF.
THE PLUS ONE PROGRAM HELPS RESIDENTIAL CUSTOMERS WHO ARE HAVING FINANCIAL DIFFICULTIES AND CHALLENGES AND ARE UNABLE TO PAY THEIR UTILITY BILLS WHO DO UNEXPECTED EMERGENCIES.
SINCE OUR LAST UPDATE TO YOU IN JUNE CITY OF AUSTIN, UTILITIES HAS PROVIDED AN ADDITIONAL TWO AND A HALF MILLION DOLLARS IN ASSISTANCE FOR A TOTAL OF $4.6 MILLION.
SO FAR THIS FISCAL YEAR, WE HAVE ACCOMPLISHED THIS THROUGH OUR NEW WEBSITE AND BY WORKING WITH OUR EXISTING NETWORK OF 56 NONPROFIT SOCIAL SERVICES PARTNERS SPREAD THROUGHOUT OUR COMMUNITY.
WE ARE PROUD OF THE ACCESSIBILITY OF THIS PROGRAM AND THE ENHANCEMENTS MADE TO HELP CUSTOMERS DURING CHALLENGING TIMES.
OUR ASSISTANCE EFFORTS ARE ONGOING AND WE STRONGLY ENCOURAGE CUSTOMERS WHO HAVE BEEN EFFECTED BY COVID-19 OR OTHER FINANCIAL HARDSHIPS TO CONTACT US OR APPLY FOR HELP WITH THEIR UTILITY BILLS@AUSTINBILLHEALTH.COM OR BY CALLING (512) 765-9721.
I WOULD LIKE TO BRIEF COUNSEL NOW
[00:05:01]
ON AUSTIN ENERGY'S UPCOMING REQUESTS FOR COUNCIL ACTION OR RCAS.SORRY TO INTERRUPT, BUT I'M NOT SEEING ANYTHING ON THIS SCREEN AND JUST WANTED TO MAKE SURE IF IT WAS ME OR IF IT WAS EVERYBODY, EVERYBODY, IT WAS UP FOR AWHILE.
UM, DO YOU HAVE THE PRESENTATION? THE SCREEN IS SHARING.
I MUST BE SOMETHING LIKE A DELAY ON THE BROADCAST.
UM, I CAN GO CHECK ON IT REAL QUICK OR WE CAN JUST WAIT A MINUTE.
UM, BUT I CAN SEE IT ON THE SCREEN RIGHT NOW.
AND IT SAYS IT'S SHARED ISOLATED VERSION.
LIKE WHEN THERE'S A POPUP SCREEN THAT IT'S NOT AUTHORIZED TO SHARE, IT LOOKS LIKE IT'S TRYING TO GIVE US THE PRESENTATION, BUT NONE OF THE SIDES HAVE PULLED UP FOR ME.
WE'RE WE'RE LOOKING INTO TO THE THANK YOU FOR LETTING US KNOW.
IN THE MEANTIME GENERAL MANAGER, THE, UM, YOUR REPORT IS ATTACHED TO OUR, OUR NOTES, RIGHT? THE EMAIL THAT YOU SENT AROUND WITH, WITH THE DOCUMENTS FOR TODAY? I BELIEVE SO.
UM, I'D RATHER KEEP ROLLING IF WE COULD, ARE Y'ALL OKAY WITH LOOKING AT THE DOCUMENTS THAT YOU HAVE IN FRONT OF YOU, EVEN IF THIS JACKIE, MAYBE WE COULD COME BACK TO LOOK AT YOU OR SOMETHING.
I WAS, I OVERLAPPED TODAY WITH, UM, AUSTIN PLACE, RETIREMENT COMMITTEE AND THE RESONANT OPPORTUNITY TO IMMEDIATELY.
I WAS GOING TO SUGGEST, UH, WHILE WE'RE WORKING OUT THE TECHNOLOGY, PERHAPS WE COULD GO TO THE DECKER CREEK POWER STATION COURSE PRESENTATION THAT OFTEN DOESN'T HAVE A POWERPOINT ATTACHED.
DOES THAT MAKE SENSE? GENERAL MANAGER THAT WORKS FOR ME.
I CAN'T SEE IF, IF, UH, THE DEPUTY GENERAL MANAGER AND CHIEF OPERATING OFFICER, UM, MR. DICKERSON IS ON FROM THE DISPLAY THAT I SEE.
DICKERSON HAS JUST BEEN AN ACTUALLY I SEE YOU THERE.
HE DOESN'T HAVE A VIDEO AND HE'S STILL NEEDED, BUT MAYBE HE'S COMING ALONG.
MR. DICKERSON, ARE YOU WITH US? WOULD YOU LIKE TO PRESENT? YEAH.
AND VICE CHAIR FROM I'VE BEEN ON FOR AWHILE.
NOW I'VE BEEN ON THIS MEETING STARTED, BUT I HAVE NOT BEEN ABLE TO MAKE THE CONNECTIONS.
THAT DIDN'T SCARE YOU ALL DID IT SCARED.
SO WITH RESPECT TO THE DECA UPDATE, WE HAVE NOT HAD ANY MORE OF THE TEAM MEMBERS AT DECKER TAKE ANY CLASSES.
THE CLASSES ARE STILL BEING OFFERED WHEN NO ONE ELSE HAS SIGNED UP FOR CLASSES, WE'RE GOING TO HOLD OUR FIRST VIRTUAL ALL EMPLOYEE MEETING ON THE 25TH OF THIS MONTH.
UM, OBVIOUSLY WE'RE DOING THAT AS A CONDITION OF THE COVID CONCERNS THAT WE HAVE.
WE DON'T WANT TO PUT A LOT OF PEOPLE IN THE SAME ROOM.
VIRTUALLY WE'VE ADDED A NUMBER OF ADDITIONAL CLASSES, UM, ONLINE LINKS, DIFFERENT TYPES OF LEARNING.
WE CONTINUE TO DO SHADOW JOB SHADOWING, WHAT WE'RE ALLOWING MEMBERS FROM THE DECA TEAM TO SHADOW PEOPLE IN OUR, LET YOU SERVE AS BUSINESSES.
WE ALL KNOW THE DECK AND A POWER PLANT AS POWER DISTRIBUTION.
A LOT OF THE SKILLS THAT THE PEOPLE WHO HAD THE POWER PLANT USE THE TRANSFERABLE, UM, ON THE WIRE SIDE.
UM, BUT THEY STILL GOING TO NEED SOME TRAINING.
SO WE'RE ALLOWING THEM TO SHADOW PEOPLE ON THE RIDE SIDE FOR THOSE PEOPLE WHO CHOOSE TO DO THAT, TO GET A BETTER SENSE OF WHAT THE DAY TO DAY WORK IS LIKE.
AND THAT'S PRETTY MUCH THE UPDATE, NO ADDITIONAL TRAINING.
WE STILL HAVE THE WINDOWS OPEN, WE'VE ADDED MORE CLASSES AND WE'RE MAKING THEM AVAILABLE.
UM, HOW MANY INDIVIDUALS HAVE YOU HAD USE THE OPTION OF SHADOW? I DO NOT HAVE THAT NUMBER IN FRONT OF ME RIGHT NOW.
CAN WE EXTEND ANY QUESTIONS? THE DECKER WORKFORCE ISSUE, COUNCIL MEMBER.
UM, CAN YOU JUST, UM, REVIEW REALLY QUICKLY THE DATES FOR THE DECOMMISSIONING? UM, WE, THE SPECIFIC DATE, BUT WE'RE GOING TO BE SHUTTING THE PLANT DOWN, YOU KNOW, UM, SOMETIME BETWEEN THE END OF THE SUMMER AND THE END OF THE CALENDAR YEAR.
SO THE SPECIFIC DAY HAS NOT BEEN SET ONSITE.
IT HAS, BUT WE GAVE NOTICE AND I DON'T HAVE THAT DATE IN FRONT OF ME OR LAST MONTH.
SO OCTOBER 30, FIRST OF THIS YEAR, WE'RE SHUTTING DOWN DECKER ONE.
AND WHAT ABOUT THE OTHER PIECES OF IT? YEAH, THE UNIT TWO IS SCHEDULED FOR NEXT
[00:10:01]
YEAR.SEEING NONE COUNCIL MEMBER, VICE CHAIR.
DID YOU APPROVE THE MINUTES, RIGHT? WE SURE DID.
SHALL WE TRY THE TECHNOLOGY AGAIN OR WITH THE TECHNOLOGY? YEAH, FOR SURE.
JACKIE ME TO GIVE IT ABOUT, WELL, THAT WAS LIKE, IT'S COMING UP.
WE CAN ADVANCE THE SLIDES BECAUSE I HAD ALREADY STARTED ON THE PRESENTATION AND WENT BACK TO THE GRAY.
NOW HOW ABOUT WE PICK UP WITH THE SECTION THAT ISN'T GRAY, IS THAT ALL IN AGENDA ITEM, NUMBER THREE, JACKIE, THE PRESENT THE PIECES OF THE PRESENTATION THAT WERE JUST VISIBLE.
ARE THOSE THE THIRD QUARTER? NO, THAT'S THE GENERAL MANAGER'S REPORT.
AND THOSE ARE EARLIER IN YOUR PRESENTATION.
THAT'S THE, THE I'M GIVING THE GENERAL MANAGER'S REPORT AND THEN OUR INTERIM OR ACTING, UH, CHIEF FINANCIAL OFFICER RUSTY MANIA WILL BE GIVING THE FINANCIAL BRIEFING AND THEN DEPUTY GENERAL MANAGER, CHIEF OPERATING OFFICER CHARLES DICKERSON.
WE'LL COME BACK ON TO GIVE THE THIRD QUARTER OPERATIONS REPORT.
SO AS YOU WERE JUST FLIPPING THROUGH, IT LOOKED, IT LOOKED AS IF AGENDA ITEM THREE OF THE THIRD QUARTER, FINANCIAL BRIEFING IS VISIBLE AND IT LOOKED TO ME LIKE THE THIRD QUARTER OPERATIONS BRIEFING WAS VISIBLE.
WAS I WRONG ABOUT THAT? AS YOU WERE JUST FLIPPING THROUGH THE, I THOUGHT I SAW THOSE AT THE, OR SO AT LEAST WE COULD START ON THOSE WHILE WE'RE TRYING TO WORK OUT WHAT'S GOING ON WITH YOU.
DOES THAT MAKE SENSE? YOU DON'T HAVE CONTROL OF THE SCREENS, THE CITY HALL, UM, A VTECH HAS CONTROL OF THE, OF THE SCREEN.
SO IF YOU COULD, I DON'T KNOW IF THAT'S RA OR DOUG OR YES, IT IS ON TV.
SO THE PUBLIC CAN'T SEE THE REPORT.
THEY CAN REMEMBER AND JUST PROCEED THROUGH, BECAUSE I THINK WE ALL HAVEN'T HAVE HAD IT MAILED TO US.
AND AS LONG AS THE PUBLIC CAN SEE, I THINK BETWEEN, WE EACH HAVE OUR OWN MEANS OF A FOLLOWING.
SO GENERAL MANAGER, IF YOU WOULD DO YOUR APARTMENTS.
SO I'VE ALREADY STARTED, UM, COMMITTEE CHAIR, AND I AM NOW ON, UM, THE SLIDE THAT HAS THE ITEMS THAT ARE GOING TO BE COMING FORTH TO CITY COUNCIL WITH REQUESTS FOR COUNCIL ACTION.
I HAVE FIVE UPCOMING ITEMS THAT I WOULD LIKE TO ADDRESS FOR YOU TODAY.
UH, THE FIRST ITEM IS A CONTACT CENTER, COMMUNICATIONS AND INFRASTRUCTURE SOLUTION FOR THE UTILITY CONTEXT CENTER AND AUSTIN THREE, ONE, ONE, UH, THIS WILL REPLACE THE CURRENT CONTRACT TO HOST, MAINTAIN AND IMPLEMENT A ROBUST CONTACT CENTER SOLUTION.
THE INITIAL TERM IS APPROXIMATELY $8 MILLION FOR THREE YEARS WITH TWO OPTIONAL ONE YEAR EXTENSIONS.
THE SECOND ITEM IS AN AMENDMENT TO AN EXISTING CONTRACT FOR THE LEASE AND MAINTENANCE OF CUSTOMIZED UTILITY VEHICLES.
THESE ARE THE VEHICLES, THE VEHICLES USED BY AUSTIN ENERGY FIELD CREWS AND INCLUDE AERIAL DEVICES THAT ARE MOUNTED ON TRUCK CHASSIES, UH, CRANES AND DIGGER DERRICKS.
THE PROPOSED AMENDMENT OF NINE AND A HALF MILLION DOLLARS WILL ALLOW FOR THE NECESSARY REPLACEMENT OF AUSTIN ENERGY OWNED VEHICLES.
NEXT IS APPROVAL OF A CONTRACT TO PROVIDE AN ENERGY TRADING AND RISK MANAGEMENT SOLUTION FOR UP TO 12 YEARS WITH A TOTAL CONTRACT AMOUNT, NOT TO EXCEED $4.7 MILLION.
THIS CONTRACT PROVIDES A SINGLE PLATFORM TO BE USED BY AUSTIN ENERGY FOR TRACKING AND MONITORING ACTIVITIES AND ENERGY MARKET RISK MANAGEMENT IN THE ERCOT MARKET AND NATURAL GAS MARKETS.
THIS REPLACES A CONTRACT THAT EXPIRES AT THE END OF THIS YEAR.
THE NEXT ITEM IS A CONTRACT TO REMOVE FOUR OBSOLETE CHILLERS AT THE DOMAIN DISTRICT COOLING PLANT.
THIS PROJECT CONSISTS OF THE DEMOLITION OF FOUR CHILLERS, WHICH WERE PRE PREVIOUSLY REPLACED.
THE CONTRACT IS NOT TO EXCEED $1.4 MILLION AND THE WORK WILL TAKE APPROXIMATELY 90 DAYS.
THE LAST ITEM I'D LIKE TO MENTION IS A CONTRACT TO PROVIDE A THREE PHASE AUTOTRANSFORMER FOR THE DUNLAP SUBSTATION AND AMOUNT, NOT TO EXCEED $4.7 MILLION.
THE AUTOTRANSFORMER SUPPLY ADDITIONAL CAPACITY TO AUSTIN ENERGY'S TRANSMISSION
[00:15:01]
SYSTEM.YOU DO THE RETIREMENT OF THE TWO DECKER STEAM UNITS.
WITHOUT THIS ADDITION, THERE'S AN INCREASED RISK TO THE RELIABILITY, THE AUSTIN ENERGY TRANSMISSION SYSTEM AND THE POTENTIAL FOR SIGNIFICANT CONGESTION CHARGES.
NEXT, I WOULD LIKE TO MENTION AN AWARD THE CITY OF AUSTIN RECEIVED IN RECOGNITION OF AUSTIN ENERGY AND AUSTIN TRANSPORTATION DEPARTMENT EFFORTS IN ADVANCING ELECTRIC TRANSPORTATION AND SUSTAINABILITY.
THE ELECTRIC DRIVE TRANSPORTATION ASSOCIATION ANNOUNCED THAT AUSTIN WAS SELECTED AS A 2020 RECIPIENT OF THE NORTH AMERICAN E VISIONARY AWARD.
THE VISIONARY AWARD IS PRESENTED BY THE WORLD ELECTRIC VEHICLE ASSOCIATION TO CITIES AND REGIONS ACROSS THE GLOBE FOR PROMOTING ELECTRIC VEHICLES AND MAKING III MOBILITY A REALITY IN THEIR COMMUNITIES.
NEXT SLIDE, AS I WRAP UP, I'D LIKE TO RECOGNIZE THE AUSTIN ENERGY EMPLOYEES WHO WENT TO SOUTH TEXAS TO ASSIST WITH REPAIR AND RESTORATION EFFORTS IN MERCEDES, TEXAS AREA DUE TO THE DAMAGE CAUSED BY HURRICANE HANNAH LISTED ON THE SLIDE ARE THE 16 EMPLOYEES WHO MADE THIS TRIP.
AUSTIN ENERGY RECEIVED THE REQUEST FOR MUTUAL AID FROM THE INVESTOR ON UTILITY AEP, TEXAS CRUZ LEFT AUSTIN ON JULY 27TH WITH FIVE BUCKET TRUCKS, TWO DIGGING DERRICKS, AND THREE SUPPORT VEHICLES TO HELP BRING POWER BACK TO AFFECTED AREAS DURING A PANDEMIC AUSTIN ENERGY CRUZ MADE IT SAFELY BACK HOME, AND I'D LIKE TO TAKE THIS OPPORTUNITY TO, AGAIN, CONVEY MY SINCERE APPRECIATION.
I'D ALSO LIKE TO SAY THANKS TO ALL OF OUR ESSENTIAL EMPLOYEES WHO CONTINUE TO CARRY OUT OUR MISSION TO SAFELY DELIVER CLEAN, AFFORDABLE, RELIABLE ENERGY, AND EXCELLENT CUSTOMER SERVICE AT A TIME WHEN OUR COMMUNITY NEEDS IT THE MOST.
NEXT SLIDE, PLEASE, WITH THAT, I WILL PAUSE AND ANSWER ANY QUESTIONS.
YOU MAY HAVE QUESTIONS, COUNCIL MEMBER ALTER.
UM, THANK YOU FOR THAT REPORT AND, UM, CONGRATULATIONS ON THE AWARD AND THANK YOU TO YOUR STAFF.
UM, I WAS WONDERING IF YOU COULD SPEAK TO, UM, HOW MUCH ADDITIONAL WE'RE SPENDING BECAUSE OF COVID TO THE EXTENT THAT, YOU KNOW, HOW MUCH OF THE ADDITIONAL EXPENSE THAT'S CREATING ON THE UTILITY.
I DO NOT HAVE THAT INFORMATION AT THIS TIME.
UM, AND WE CAN GET BACK TO YOU WITH THAT.
IF IT'S RELATIVELY EASY TO GET TO ME, I WOULD LIKE TO KNOW, BUT IF IT'S, YOU DON'T, IF YOU DON'T HAVE ANY WAY OF ACCOUNTING FOR IT, AND WE DO, WE DO HAVE A WAY OF ACCOUNTING FOR THOSE THINGS THAT POTENTIALLY COULD BE REIMBURSABLE.
AND SO I KNOW THAT WE'VE BEEN TRACKING THAT, UM, OBVIOUSLY THE THINGS THAT ARE CAUSING A COST TO US NOW ARE THE ADDITIONAL PERSONAL PROTECTIVE EQUIPMENT THAT WE NEED TO DO AND HOW WE'RE MANAGING THE WORK CREWS.
SO WE'LL LOOK AT THAT AND SEE WHAT WE CAN COME BACK TO YOU WITH.
I JUST THINK IT'S IMPORTANT THAT WE GET A, A FULLER PICTURE OF HOW THIS HAS AFFECTED THE FINANCES AND OPERATIONS.
UM, BUT AGAIN, I'M NOT, I DON'T WANT YOU TO JUMP THROUGH A LOT OF HOOPS TO, TO GET THAT.
I'M ASSUMING THAT YOU GUYS ARE WATCHING THAT IN A PARTICULAR WAY.
WE'RE WATCHING IT VERY CLOSELY.
AND ONE OF THE CONCERNS THAT WE HAVE IS, UM, THE LONGTERM IMPACTS, UM, THAT ARE UNKNOWN AT THIS TIME AND WHAT THAT'S GONNA MEAN FOR THE UTILITY.
UM, BUT WE ARE TRACKING IT AND AS WE HAVE BETTER INFORMATION, WE'LL BE ABLE TO SHARE THAT WITH YOU.
UH, JACKIE, UH, ON THOSE, UH, THOSE FOUR CHILLERS, THAT DOMAIN, THAT'S GOING TO BE AT THAT A COMPLETE DEMOLITION OR THAT ARE YOU MAKING ROOM TO REPLACE? IT WAS, UH, NEW ONES.
SO THEY'VE ALREADY BEEN REPLACED.
SO THESE ARE THE OLD ONES THAT WERE OBSOLETE, SO WE NEEDED TO REPLACE THEM.
SO WE GOT THE REPLACEMENT INSTALLED.
AND SO NOW WE CAN REMOVE THESE.
AND WHERE IS THE DM LAB SUBSTATION LOCATED AT? YOU KNOW, THAT'S A TRANSMISSION SUBSTATION AND WE DON'T GIVE THE SPECIFIC LOCATIONS OF THOSE BECAUSE THEY'RE CONSIDERED A CRITICAL INFRASTRUCTURE.
ANYTHING ELSE? OTHER QUESTIONS, GENERAL MANAGER.
I SAW A POST YESTERDAY ON NEIGHBORHOOD NEXT DOOR ABOUT ONE OF YOUR AUSTIN ENERGY EMPLOYEES WHO IS VERY INVOLVED IN, IN ONE OF THE ISOLATION FACILITIES AND HELPING LEAD SOME OF THOSE EFFORTS.
[00:20:01]
SO THANK YOU TO ALL OF YOUR EMPLOYEES FELT FOR ASSISTING OUR NEIGHBORS TO THE, TO THE SOUTH AND OTHER PLACES IN TEXAS, UH, IN THE WAKE OF HURRICANE, KINDA, BUT ALSO THANK YOU TO YOUR EMPLOYEES WHO ARE HELPING OUT, UM, IN THE RESPONSE TO THE PANDEMIC AND IN WAYS THAT ARE, YOU KNOW, REALLY OUTSIDE THEIR REGULAR JOB DUTIES.IF NOT BEFORE I TURN IT OVER TO RUSTY MANIAS TO PROVIDE THAT THIRD QUARTER FINANCIAL BRIEFING, I WANT TO MENTION THAT HIS TEAM HAS BEEN WORKING ON A RATE ADEQUACY REVIEW AND THE PRELIMINARY RESULTS INDICATE THAT A RATE CHANGE OR RATE CHANGES ARE NOT NEEDED AT THIS TIME.
HOWEVER, UM, WHAT WE JUST DISCUSSED, THERE ARE A NUMBER OF FACTORS ON THE HORIZON THAT ARE GOING TO AUSTIN.
ENERGY'S FINANCES, SUCH AS THE GENERATING UNITS, SHUT DOWNS AT DECKER, UH, EXITING, UH, THE FE POWER PROJECT.
AND THEN CERTAINLY THE UNCERTAINTY UNCERTAIN, OPERATIONAL AND LONGTERM ECONOMIC IMPACTS OF COVID-19.
UH, IN THE COMING DAYS, WE WILL BE FINALIZING OUR REVIEW AND WE'LL PROVIDE A MEMO TO COUNCIL.
UH, SO I JUST WANTED TO GIVE YOU A HEADS UP ON THAT.
[3. Third Quarter Financial BriefingSponsors]
AND WITH THAT, I'LL TURN IT OVER TO RUSTY, UH, FOR THE THIRD QUARTER FINANCIAL REPORT.MY NAME IS RUSSELL MENDEZ AND I AM THE ACTING CHIEF FINANCIAL OFFICER.
AND I'LL BE PRESENTING YOUR AUSTIN ENERGY QUALITY FINANCIAL REPORT.
I'LL WAIT FOR THE AB YOU GET THE POWER BACK TO THE BEGINNING.
CAN YOU SPEAK UP A LITTLE BIT? IT'S PRETTY HARD TO USE MATT.
CAN YOU HEAR ME NOW? IS THIS BETTER? YES.
IS THIS THE CORRECT PRESENTATION ON THE SCREEN? I JUST SEE A PIXELATED BOX, QUARTERLY FINANCIAL REPORT, CORRECT.
NOW, IF YOU'LL JUST LET ME KNOW AS WE GO, IT'S ALL GOOD TV, BUT AGAIN, I THINK WE ALL RECEIVED IT VIA EMAIL.
AND SO IF, IF YOU WOULD SORT OF WALK US THROUGH IT, IF THERE ARE ANY COLLEAGUES WHO NEED THAT EMAIL TO THEM, THERE THERE IS.
SO WE CAN LEAVE IT RIGHT THERE.
SO, UM, AS I SAID, MY NAME IS RUSSELL.
NATE IS CURRENTLY THE, UH, UH, ACTING CHIEF FINANCIAL OFFICER FOR AUSTIN ENERGY AND OPPOSITE THIRD QUARTERLY REPORT.
THIS SLIDE JUST SAYS THAT, UH, UM, THAT THESE, UH, THESE, UH, PRESENTATION TODAY ARE BASED ON AN AUDIT NEXT, PLEASE.
WE'LL FOLLOW AND START WITH THE EXECUTIVE SUMMARY ONE MORE PLACE.
SO GO BACK ONCE YOU, SO AUSTIN ENERGY IS GENERALLY COMPLIANT WITH ITS FINANCIAL POLICIES AND ITS FINANCIAL METRICS.
THROUGH THE FIRST NINE MONTHS, AUSTIN ENERGY IS GENERATED $958 MILLION IN REVENUES AND INCURRED $760 MILLION.
NOW THAT $198 MILLION DELTA IS USED TO PAY, UM, THINGS LIKE THAT SERVICE IN GENERAL FUND TRANSPARENT AND OTHER ITEMS. OUR BALANCE SHEET REMAINS LIQUID AND WE'RE ADEQUATELY CAPITALIZED.
AND AT THE END OF THIS PRESENTATION, WE'LL HAVE A FEW SLIDES ON THE IMPACT OF PROBATE ON OUR, UH, BOTH OUR LOAD AND, UH, ENERGY, UH, PORTFOLIOS X, PLEASE.
SO AUSTIN ENERGY IS COMPLIANT WITH ALL ITS FINANCIAL POLICY SAVING EXCEPT THE CAPITAL RESERVE, WHICH CURRENTLY HAS A BALANCE OF $70 MILLION
[00:25:01]
AS A MINIMUM BALANCE OF 102 MILLION.SO THAT $32 MILLION DEFICIT IS FUNDED FROM A YEARLY OPERATING REVENUES.
IF THOSE FUNDS ARE AVAILABLE FOR TRANSFER, UH, IN A BUDGET, WHEN HE, WHEN HE ONE, WE HAVE $5 MILLION SLIGHTLY REMOVED INTO THE CAPITAL RESERVE, NEXT PLACE, AS YOU CAN SEE HERE, WE HAVE FOUR FINANCIAL METRICS THAT WE, UM, WE MONITOR VERY CLOSELY THE BASIC CASH ON HAND DEBT, SERVICE, COVERAGE, OPERATING MARGINS, AND DEBT TO CAPITALIZATION.
AND AS YOU CAN SEE, AUSTIN ENERGY HAS MET THE MINIMUMS FOR BOTH DAYS OF CASH ON HAND AND DEBT SERVICE COVERAGE.
HOWEVER, AUSTIN ENERGY HAS NOT MET THE MINIMUM UNDER OPERATING MARGINS IN DEBT CAPITALIZATION, AND AUSTIN ENERGY'S INABILITY TO MEET THOSE MINIMUMS IS ATTRIBUTED TO THE NACODOCHES ACQUISITION.
UH, THEY ARE, UH, THERE IS ACCELERATED DEPRECIATION ON THAT PLAN, WHICH DAMPENS OPERATING MARGINS AND, UM, UH, BOND OBLIGATIONS, AUSTIN ENERGY INCURRED TO PURCHASE NEC, UM, MOVED US ABOVE THE 50% THAT THE CAPITALIZATION NOW THAT BEING SAID, AUSTIN ENERGY VIEWS, BOTH, UH, THEIR INABILITY TO MAKE THESE MINIMUMS AS SHORTER TERM, UH, SITUATION.
UM, THEY, AUSTIN ENERGY STANDS BY THEIR PURCHASE OF KNACK THAT IS PRUDENT AND WILL, UM, SAVE OUR CUSTOMERS $300 MILLION NEXT, PLEASE, THAT WE HAVE TWO, UM, AFFORDABILITY GOALS.
THE FIRST IS THAT WE MAINTAIN THE SYSTEM AVERAGE RATE AT, OR BELOW 2% OF AN ANNUAL COMPOUND GROWTH RATE.
AND WE ARE MEETING THAT METRIC.
THE SECOND IS THAT WE STAY IN THE LOWER HALF OF ALL TEXANS UTILITY, SERVING RESIDENTIAL COMMERCIAL AND INDUSTRIAL CUSTOMERS.
AND WE HAVE NOT MET THAT METRIC YET.
ALTHOUGH WE ARE VERY CLOSE WE'RE AT 100.4% OF THE STATE AVERAGE FOR MARTIN.
UH, SO AS I MENTIONED EARLIER IN THE PRESENTATION, HOSTILE ENERGY IS GENERATED OVER THE FIRST NINE MONTHS, $958 MILLION IN OPERATING REVENUES, AND THAT'S WITHIN A MILLION DOLLARS OF BUDGET.
AND I'M PARTICULARLY PLEASED THAT BILL BASE REVENUES WITHIN $3 MILLION NEXT, PLEASE, SAME IS KIND OF TRUE WITH OPERATING REVENUES.
WE'VE INCURRED $760 MILLION OF OPERATING EXPENSES, UM, A YEAR TODAY, UH, AS OPPOSED TO A BUDGET OF 750 MILLION.
SO THERE WERE $10 MILLION OVER BUDGET.
THE MAJORITY OF THAT CAN BE SEEN IN THE DELTA BETWEEN IN THE ELECTRIC SERVICE DELIVERY.
MOST OF THAT, UH, VARIANCE IS DUE TO HIGHLIGHT LABOR COSTS ASSOCIATED WITH COVID AND A $2 MILLION SOFTWARE NEXT PLACE.
AND AS YOU CAN SEE THAT WE HAVE $11 MILLION NEGATIVE VARIANCE IN YOUR OPERATING INCOME.
WE HAVE ACTUAL OPERATING INCOME AT 198 MILLION VERSUS A BUDGETED AMOUNT THAT'S ATTRIBUTED TO THE REVENUES AND EXPENSES JUST TALKED ABOUT, AS YOU CAN SEE THAT OTHER ELEMENTS, UH, TO THE BUDGET, UM, ARE, ARE REMAIN PRETTY CLOSE, SAVING, ET CETERA, INTEREST REVENUE.
SO THROUGH THE YEAR, AND WE ARE, WE ARE RUNNING AT A DEFICIT OF $78 MILLION COMPARED TO A BUDGET DEFICIT OF 66 MILLION.
AND IT'S, IT'S ATTRIBUTED TO THE REVENUE AND EXPENSES THAT WE TALKED ABOUT EARLIER.
NOW, IF YOU LOOK AT OUR CURRENT OPERATIONS COMPARED TO THE PRIOR YEAR, OUR OPERATING REVENUES AND OPERATING EXPENSES ARE LOWER THIS YEAR COMPARED TO AT THE SAME TIME LAST YEAR, THAT'S PRIMARILY DUE TO THE POWER SUPPLY ADJUSTMENTS.
UH, ALSO DEBT SERVICE IN THE CURRENT YEAR IS SLIGHTLY HARDER THAN PRIOR YEAR.
AND THAT'S DUE TO THE ADDITIONAL, UH, NACADOCIOUS DEBT, MEXICANS.
THIS IS ACTUAL TO BUDGET RETAIL, ENERGY SALES, AND YOU CAN SEE THAT THERE'S, WHILE THERE'S MONTHLY VARIANCES THROUGH THE, THROUGH THE NINE MONTHS WE ARE, WE HAVE SO 9,205 GIGAWATT HOURS OF ENERGY.
THAT'S ONLY FOUR GIGAWATT HOURS, LESS THAN BUDGET.
SO IT'S LESS THAN A QUARTER PERCENT.
[00:30:02]
THIS GRAPH SHOWS OUR NON TIRE SUPPLY REVENUES AND FOR THE YEAR WERE $12 MILLION UNDER BUDGET.AND THAT'S ATTRIBUTED TO THE REGULATORY REVENUE.
AS YOU MAY RECALL, THE AUSTIN ENERGY'S RESPONSE TO THE COVEN, UH, ENDEMIC WAS TO REDUCE THE REGULATORY CHARGE.
SO IT'S REASONABLE THAT, UH, REGULATORY REGIMENS ARE LAGGING NEXT, PLEASE, BACK UP.
SO THIS IS ACTUAL POWER SUPPLIED, UH, ASKED THAT DURING THE FIRST NINE MONTHS IN ACTUAL POWER SUPPLY COSTS, TOTAL $285 MILLION, AND IT'S ONLY A 1% VARIANCE, UH, YEAR TO DATE.
THE BLUE LINE REPRESENTS, UH, THE POWER SUPPLY ADJUSTMENT REVENUE.
THOSE ARE THE REVENUES THAT WE COLLECTED PAID POWER SUPPLY COSTS ILLUSTRATED IN THE YELLOW BARS.
NOW YOU LOOK IN GENERAL OVER THAT NINE MONTH PERIOD, THE, UH, THE BLUE LINE HISTORICALLY STAYS ABOVE THE BARS, AND THAT WAS INTENTION.
WE STARTED THE YEAR WITH A $21 MILLION UNDER RECOVERY.
SO WHEN WE SET THE USA, WE TRIED TO SET IT JUST SLIGHTLY HIGHER THAN WHAT WE THOUGHT OUR SUPPLY COSTS WERE GOING TO BE.
AND CONSEQUENTLY, WE HAVE BEEN SUCCESSFUL BECAUSE REALLY IN JUNE, WE HAVE REACHED THAT, THAT UNDER RECOVERY FROM 21 MILLION TO 5 MILLION NEXT PLACE, THIS IS OUR CAPITAL IMPROVEMENT PLAN.
I SEE YOU SEE THE HORIZONTAL BARS ON THE RIGHT SHOWS, HOW ARE, AND RIGHT IS, IS, IS ON THAT ON AN APPLE IMPROVEMENT PLAN AND THE PIE CHART TO THE LEFT, UM, SPEAKS TO HOW WE FINANCE IT.
SO, UM, AS I WAS SAYING, WE HAVE A 254 MILLION OF OUR CAPITAL PLAN FOR THREE QUARTERS OF THE YEAR.
SO WE'RE AT, WE SHOULD BE AT ABOUT A 75% TARGET WE'RE AT 71% TARGET, WHICH IS VERY CLOSE.
THE BIGGEST VARIANCE IS UNDER GENERAL WHERE WE HAD, UM, AT I ENTER PURCHASE WAREHOUSE FACILITY, AND WE'RE UNABLE TO CONSUMMATE THAT SALE.
SO WE'LL, WE WON'T GET THAT DONE THIS YEAR.
UH, IF YOU LOOK AT THE PIE CHART, YOU CAN SEE THAT ABOUT HALF OF OUR CIP IS FUNDED WITH DEBT AND THE REMAINDERS WITH CASH AND CONTRIBUTIONS ENABLED TO CONSTRUCTION NEXT, PLEASE, THIS CHART DISPLAYS ALL THE COMPONENTS OF OUR POWER SUPPLY COSTS AND DEMONSTRATES THE VALUE OF OUR OWNED AND CONTRACTED ASSETS KNOWS THOSE ASSETS, UH, WORK AS EDGES ON OUR BEHALF.
CONSEQUENTLY, OUR LOAD ZONE COSTS ARE REDUCED BY 35% IN THE SAVED OUR CUSTOMERS OVER $200 MILLION NEXT, PLEASE, ONE MORE TIME.
THIS IS OUR GAP BASED BALANCE SHEET ON THE LEFT AND THE INFORMATION TO THE RIGHT THAT CIRCLE CIRCLE GRAPH HIGHLIGHTS OUR, UM, OUR CASH AND WORKING CAPITAL, UH, IN THE LOWER BAR CHARTS BELOW THAT, UM, HIGHLIGHT OUR COMMERCIAL PAPER PROGRAM.
SO THEN I CAN BACK UP AND GO TO THE BALANCE SHEET.
UH, CURRENT ASSETS HAVE INCREASED $50 MILLION AND THAT'S PRIMARILY ATTRIBUTED TO AN INCREASE IN RECEIVABLES AND INVENTORY.
OUR LONGTERM ASSETS HAVE INCREASED NEARLY $400 MILLION.
NOW HALF OF THAT, UH, IS, IS ATTRIBUTED TO AN ASSET RETIREMENT OBLIGATION RELATED TO FTP AND ESTEE GROUP REMAINDER $78 MILLION IN DEFERRED PENSION EXPENSE AND $88 MILLION IN DIFFERENT APPRECIATION.
UH, THE NACADOCIOUS ACQUISITION MAKEUP REMAINING.
NOW, I JUST TOLD YOU THAT ABOUT $200 MILLION OF THE, UM, UH, ASSET RETIREMENT OBLIGATION AND ALSO, UM, $78 MILLION IN DEFERRED PENSION EXPENSE CONTRIBUTORS TO THE INCREASE IN LONGTERM ASSETS.
FOR THE OTHER SIDE OF THAT TRANSACTION IS AN INCREASE THE LONG TERM AS A LONGTERM LIABILITIES.
AND THAT'S WHAT MAKES UP THAT IF YOU LOOK TO THE RIGHT OF THE CIRCLE GRAPH, WE SHOW THAT WE HAVE $657 MILLION IN NATIONAL RESERVES, AND THAT THAT REPRESENTS 209 DAYS OF CASH ON HAND.
AND TODAY WE HAVE OUR THREE, THE THIRD QUARTER WE'VE DRAWN $128 MILLION.
THEY VARY FROM GROWTH PROGRAM.
THAT'S WORTH 275 MILLION NEXT, PLEASE.
[00:35:05]
THANK YOU.ONE MORE THING THAT THE BALANCE SHEET ON THE LEFT IS, UH, IT'S JUST A LITTLE MORE DETAILED ABOUT THE BALANCE SHEET THAT I SPOKE ABOUT IN THE PREVIOUS SLIDE, BUT I'D LIKE TO DRAW YOUR ATTENTION TO IS THAT YOU CAN, WHERE YOU CAN STAY ON THE NET INCOME, UH, THAT, UM, WE ARE, WE ARE $25 MILLION LESS THAN THE PRIOR YEAR.
UH, WE'VE PUT $26 MILLION IN THE PRIOR PERIOD AND OUR A MILLION DOLLARS NOW THAT IS PRIMARILY ATTRIBUTED TO A ONE TIME AUDIT ADJUSTMENT, UH, FOR DEPRECIATION EXPENSE ON TANGIBLE ASSETS.
UH, YOU LOOK IN THE BAR CHARTS ON THE BOTTOM.
UH, WE HAVE GROWN BY SOME 12,000 CUSTOMERS.
YOU'RE KEEPING 4% INCREASE WHILE, UH, WE HAVE GROWN, UH, CUSTOMER WISE AT THIS I WROTE IN A GIGAWATT OF OUR SALES HAS ALSO INCREASED, BUT NOT AT THE SAME RATE, THOSE GIGAWATT HOURS SALES INCREASED 1.4% NEXT, PLEASE.
SO, UM, THIS GRAPH SHOWS THE SECONDARY ENERGY CONSUMPTION OVER FREE IN A POSTPARTUM PERIOD.
AND WHAT IT DOES IS IT'S, IT'S NOT ADJUSTED FOR CUSTOMER GROWTH AND IT'S NOT ADJUSTED FOR WEATHER, BUT IT'S SIMPLY A COMPARISON BETWEEN THIS SEVEN MONTHS IN THE PRIOR PEARSON PERIOD, SEVEN MONTHS.
AND AS YOU CAN SEE, THEY TRACK RELATIVELY CLOSE.
UM, AND CONSEQUENTLY THAT, I THINK WHEN'S THE STABILITY THAT WE SPOKE ABOUT EARLIER, UH, IN REGARD TO, UH, UH, REVENUES IN A BUDGET.
AND SO, AS YOU CAN SEE, THERE'S WHILE THERE'S THERE'S LITTLE MONTHLY VARIANCES ON A MONTH ON A MONTHLY BASIS, OVERALL SALES, AND 1% OUT OF 2019 SEVEN MONTHS NEXT PLACE, WELL, TOTAL ENERGY SALES LOOK STABLE.
THE UNDERLYING DATA TELLS A DIFFERENT STORY.
UH, WE ARE DEFINITELY SEEING A REDUCTION IN COMMERCIAL SALES, UM, AND IT IS BEING BUILT BY AN INCREASE IN RESIDENTIAL SALES.
SO YOU LOOK AT THE GRAPH ON THE LEFT, YOU CAN SEE THAT THE YELLOW BAR, WHICH IS 2020 ON THE RESIDENTIAL SECTOR IS OUT PACING THE PRIOR YEAR.
AND THE OPPOSITE IS TRUE IN THE COMMERCIAL SENSE.
WE'RE ALMOST HAVING A FLIP FLOP.
AND THE SAME IS TRUE ON, ON A LOAN.
UM, UH, A RESIDENTIAL, UH, LOAD REPRESENTS A HIGHER PROPORTION, UH, SINCE APRIL.
AND THAT'S KIND OF WHEN COVID FROM IT KIND OF KICKED IN AROUND THAT MARCH TIME AND IS REALLY REFLECTED IN THE NUMBERS IN APRIL.
SO, SO LOAD IS, IS MIMICKING THE ATYPICAL, UM, ENERGY ENERGIES AND OF YOUR VOTES IN THE FINALS.
OKAY, SO WE USE SECONDARY SALES AS A PROXY.
WE KNOW THAT 10 OF TOTAL ENERGY SALES ARE CONSISTENT WITH THE PRIOR YEAR.
I SAID THAT THEY'RE NOT ADJUSTED FOR A WEATHER AND SO FORTH THIS ONE, AND THAT THEY HAVE A MASKING EFFECT, BUT BECAUSE WE ARE CONSISTENT WITH 2019, WHICH IS CONSIDERED A NORMAL YEAR, IF YOU WILL, OUR BUDGET TO ACTUAL ENERGY SALES AND OPERATING VERY CLOSE THE BUDGET, UM, WE DO HAVE, UM, CHANGING LOAD AND ENERGY PROFILES FOR ENERGY.
RESIDENTIAL SALES ARE HIGHER THAN PRIOR YEAR, AND THEY BACK FILL THE REDUCTIONS IN COMMERCIAL SALES.
AND IT'S JUST REALLY IMPORTANT TO SHOW THAT RIGHT NOW, THIS IS AN ATYPICAL YEAR.
UH, AND WE, AND THIS JACKIE ALLUDED TO EARLIER, JUST NOT KNOW WHAT THE LASTING EFFECTS ARE OF THE POET IMPACT GOING TO BE.
WE DON'T KNOW THAT ONCE WE DO THIS, UH, THAT WE WILL RETURN TO WHAT WE CONSIDER NORMAL OR DON'T HAVE IT.
AND THAT, UH, IS THE END OF MY SLIDES.
AND I'LL BE HAPPY TO ANSWER ANY QUESTIONS.
[00:40:01]
DOMBROWSKI.UM, LET'S SEE, I CAN SAY SOME OF YOU, ANY QUESTIONS, COUNCIL MEMBER ALTAR.
I JUST WANTED TO MAKE SURE THAT I UNDERSTOOD, UM, ON, UH, SLIDE 17, THE ACTUAL BUDGET POWER SUPPLY.
SO YOU SAID WE HAD AN UNDER FUNDING OF THE PSA BEFORE WE BRING THAT SLIDE BACK UP AGAIN.
SO I UNDERSTAND THAT THE BLUE LINE REPRESENTS THE REVENUE THAT WE ACTUALLY HAD COMING IN AND OUR ACTUAL COST.
NOW DID WE WAS THE, WHEN YOU SAY THERE WAS THE UNDER REVENUE FOR THE P S A, WAS THAT LEFTOVER FROM THE PRIOR? MAYBE YOU COULD JUST HELP ME UNDERSTAND EXACTLY RIGHT.
AT THE BEGINNING OF THE YEAR, WE STARTED WITH A $21 MILLION UNDER RECOVERY.
AND IN THROUGH JUNE, WE HAVE, WE HAVE REDUCED THAT YOUR RECOVERY FROM $20 MILLION UNDER RECOVERED $5 MILLION.
SO WE STILL HAVE THE MILLION UNDER RECOVERY DURING THAT PERIOD.
AND THAT'S A NORMAL PROCESS BECAUSE WE CAN'T ALWAYS ANTICIPATE YES.
THAT'S WHAT I WANTED TO CLARIFY.
I HAVE A QUESTION ABOUT THE RESIDENTIAL COMPARISON BETWEEN THE PRESIDENTIAL AND THE COMMERCIAL LAST YEAR.
I FORGOTTEN WHAT SLIDE THAT WAS ON, BUT ONE OF THE THINGS THAT WAS OF INTEREST, YOU WOULD CERTAINLY EXPECT, YOU KNOW, WHAT YOUR, WHAT YOUR GRAPH SHOWS, NOT THIS GRAPH, BUT THE GRAPH YOU SHOWED US EARLIER, LOOKING AT, UM, THE SPIKE IN USAGE AT RESIDENTIAL.
AND THAT'S NO SURPRISE BECAUSE OF SO MANY, SO MANY PEOPLE WORKING AT HOME, WHAT WAS A LITTLE BIT OF A SURPRISE IS THAT THERE'S NOT MORE OF A CORRESPONDING DIP IN THE COMMERCIAL USAGE.
AND I DIDN'T KNOW IF YOU HAD ANY THOUGHTS ON WHY THAT WAS WELL, WELL, THAT CERTAINLY IS.
UM, UH, IT'S A SIGNIFICANT DIP, UH, IN, IN THE COMMERCIAL AND NOT, NOT TO UNDERPLAY THAT, UM, WE HAVE SEEN THAT FALL OFF, UH, IN, IN THAT REGARD.
SO, UM, UM, THERE'S NOT NECESSARILY A ONE FOR ONE SWAP, UH, BUT WE HAVE SEEN SIGNIFICANT, UH, MARSHAL DETERIORATION, BUT IT HAS BEEN BUFFETED BY THE INCREASE IN RESIDENCE, BY THE INQUIRY IN TERMS OF, FROM THE UTILITIES PERSPECTIVE.
I'LL TAKE ANOTHER LOOK AT THAT GRAPH.
ONCE I HAVE IT IN FRONT OF ME, AGAIN, IT DIDN'T SEEM TERRIBLY SIGNIFICANT OF A DROP FOR JUNE AND JULY, ESPECIALLY ONCE, UM, ONCE WE GOT PAST, I THINK APRIL WAS THE LOWEST POINT FOR COMMERCIAL AND THEN IT, AND THEN IT WAS ALMOST AT THE LEVEL, IT LOOKED LIKE IT WAS ALMOST AT THE LEVEL, BUT MAYBE THE SCALE OF OUR COMMERCIAL USAGE IS SUCH THAT THAT IS, YOU KNOW, ANY, ANY DROP, EVEN IF IT LOOKS LIKE A QUARTER OF AN INCH ON THE CHART IS PRETTY SIGNIFICANT.
I'LL HAVE TO LOOK AT THE NUMBERS AGAIN, BUT THANKS FOR THAT ASSESSMENT.
ARE YOU AWARE OF ANY, ANY COMPANIES THAT ARE PROVIDING, I MEAN, JUST ANECDOTALLY, ANY COMPANIES THAT ARE PROVIDING STIPENDS TO THEIR EMPLOYEES FOR WORKING AT HOME? UM, GIVEN THE INCREASED USAGE.
I KNOW WHEN, WHEN, UM, WHEN I BROUGHT FORWARD WITH MY CO-SPONSORS THE RESOLUTION TO ASK OUR UTILITY, OUR UTILITIES, UH, AT WHAT, WHAT KINDS OF PROVISIONS THEY MIGHT PUT IN PLACE FOR OUR CUSTOMERS.
UM, IN TERMS OF PROVIDING SOME BILL, SOME BILL RELIEF, WE ALSO HAD A PROVISION IN THERE ASKING THE CITY TO LOOK AT WHETHER IT WOULD BE APPROPRIATE TO PROVIDE SOME STIPENDS TO EMPLOYEES WHO ARE NOW WORKING AT HOME, GIVEN THEIR INCREASED UTILITIES.
AND, YOU KNOW, WE HAD CONVERSATION BACK AND FORTH, AND IT WAS SUGGESTED THAT THE, THAT, THAT WAS THAT RESOLUTION WAS NOT THE RIGHT MECHANISM FOR DOING SO, BUT, YOU KNOW, AS I LOOK AT, AS I, AS I LOOK AT YOUR GRAPH, UM, WHICH REALLY VISIBLY SHOWS HOW THOSE COSTS, BUT THAT WERE ONCE ABSORBED BY AN EMPLOYER ARE NOW BEING SHIFTED TO EMPLOYEES.
UM, I REALLY WOULD JUST WONDER ABOUT THAT.
WHETHER ONE, WHETHER IT WOULD BE AN APPROPRIATE CONSIDERATION FOR THE CITY OF AUSTIN IN TERMS OF OUR EMPLOYEES WHO ARE WORKING AT HOME, BUT MORE GENERALLY, I'M INTERESTED TO KNOW IF YOU KNOW, HOW BUSINESSES ARE HANDLING
[00:45:01]
THAT IN THIS PERIOD WHERE THEIR EMPLOYEES ARE PRIMARILY WORKING IN THOSE COMPANIES, WHERE EMPLOYEES ARE PRIMARILY WORKING FROM HOME, YOU MAKE A REALLY VALID POINT.I AM NOT AWARE OF WHAT THE MARKET IS DOING.
I DON'T KNOW IF ANY OF MY COLLEAGUES ARE, I'M JUST, I'VE BEEN CURIOUS ABOUT THAT THROUGHOUT.
I'M ASSISTANT, UH, DEPUTY GENERAL MANAGER YOU'RE MUTED.
I CHAIR NO PUN INTENDED A CALL NOW MONTHLY WITH THESE CHIEF OPERATING OFFICERS FROM THE LARGEST PUBLIC POWER UTILITIES AROUND PRETTY BRIAN.
AND I ASKED THIS QUESTION ABOUT A MONTH AGO, AND IT'S, I KNOW THIS ISN'T SCIENTIFIC, BUT I WOULD SAY PROBABLY 40% ARE PROVIDING SOME TYPE OF STIPEND TO EVA COVER THE ADDITIONAL COST OF CARTRIDGES OR PRINTERS OR, UH, ADDITIONAL ELECTRIC USE.
THERE'S NO SCIENTIFIC KIND OF STUDY ON IT.
SOME ARE DOING IT IN SOME ARE THAT'S HELPFUL.
AND IT MAKES THOSE EMPLOYEES ARE, AS I SAID, STARVING, THOSE COSTS THAT WERE ONCE BORN BY THEIR EMPLOYER.
ANY OTHER QUESTIONS MUMBRELLA ARE ANY OF YOUR SERVICE ANNOUNCEMENTS KIND OF HELPING BUSINESSES KNOW HOW TO MAYBE REGULATE THEIR THERMOSTATS REMOTELY? I KNOW SOME THAT AREN'T HAVING EMPLOYEES IN THE OFFICE MAY DECIDE TO SAVE A LITTLE BIT ON ENERGY IN THE COMMERCIAL ASPECTS, JUST SINCE PEOPLE AREN'T IN THE OFFICE.
IS THAT SOMETHING THAT AUSTIN ENERGY IS REACHING OUT ABOUT OR DO THEY HAVE ANY OTHER INFORMATION ABOUT A BEST PRACTICE THAT MIGHT BE COMMUNICATED TO THOSE TYPES OF BUSINESSES? THAT'S DOPE.
I HAD A HARD TIME HEARING THAT IF THERE, I'M SORRY.
LET ME INTERRUPT FOR JUST A SEC, A FEW PEOPLE WHO NEED TO MUTE THEIR MICROPHONES.
IT IS BECAUSE THOSE WHO ARE NOT MUTED ARE STILL ON MUTE.
IF YOU WOULD TAKE A LOOK AND MAKE SURE THAT YOU'RE MUTED, YOU'RE NOT SPEAKING.
THE SHORT ANSWER IS YES, AUSTIN ENERGY DOES HAVE A PROGRAM AND PROGRAMS IN PLACE TO DO JUST THAT MANDATE.
IT'S CARRIED OUT THROUGH CUSTOMER ENERGY SOLUTIONS.
SAYING NO OTHER QUESTIONS THAT TAKES US TO OUR LAST ITEM, WHICH IS THE THIRD QUARTER OPERATIONS BRIEFING QUESTION, FIRST ITEM, BUT THEN THAT POWERPOINT GOT MESSED UP.
SO I DIDN'T KNOW IF WE WERE GOING BACK TO THAT LATER, OR IF WE'VE COVERED EVERYTHING.
I HAD A QUESTION ABOUT THE SLIDE ABOUT PLUS ONE, UM, UH, REALLY QUICK, JUST, I APPRECIATE, UM, MS. SERGEANT, YOU MENTIONING THAT PEOPLE CAN KEEP ON APPLYING AND REACHING OUT.
UH, I HEARD THAT YOU MENTIONED THAT THEY'LL HAVE DONE 4.6 MILLION IN ASSISTANCE SO FAR THIS YEAR.
HOW FAR ARE WE FROM, FROM HITTING OUR BUDGET OR THE AMOUNT THAT WE STILL HAVE LEFT? WELL, COUNCIL MEMBER CASCARA THANK YOU FOR ASKING THAT QUESTION.
UM, AS YOU'LL RECALL ON WITH THE APRIL 9TH ORDINANCE THAT COUNCIL PASSED AUSTIN WATER ADDED AN ADDITIONAL 5 MILLION AND AUSTIN ENERGY ADDED 5 MILLION.
SO FOR A TOTAL OF $10 MILLION TO THE PLUS ONE, UH, PROGRAM, PLUS OUR ORIGINAL BUDGET, WHICH I BELIEVE WAS 2.6 MILLION.
SO THAT WOULD BE A TOTAL OF 12.6 MILLION.
SO WE HAVE FUNDS THAT ARE REMAINING AND WE PLAN TO CONTINUE TO BE REACHING OUT TO CUSTOMERS AND LOOKING FOR OPPORTUNITIES TO CONTINUE TO PROVIDE THAT, UH, THAT ASSISTANCE THROUGH THAT PROGRAM.
AND WE ARE LOOKING AT ADDITIONAL WAYS THAT WE CAN REACH OUT TO CUSTOMERS TO GET THEM TO CALL US.
AND SO IT'S REALLY IMPORTANT IF YOU HAVE CONSTITUENTS THAT ARE CONTACTING YOU, THAT ARE CUSTOMERS THAT YOU ENCOURAGE THEM TO REACH OUT AND ASK FOR THAT SUPPORT SO THAT WE CAN HELP THEM.
SO, SO GENERALLY THERE'S A LITTLE, THERE'S OVER 12 MILLION IN THE BUDGET AND WE'VE, WE'VE HELPED, WE'VE DONE ABOUT 5 MILLION OR A LITTLE UNDER 5 MILLION OF IT IS THAT THE RIGHT WAY TO THAT WAS FROM A COUPLE OF WEEKS AGO WHEN THIS WAS PUT TOGETHER.
AND I UNDERSTAND THAT WE'VE ALSO BEEN ABLE TO, UH,
[00:50:01]
PROVIDE ADDITIONAL ASSISTANCE.UM, AND I THINK WE ARE CLOSE TO THE $5 MILLION NUMBER RIGHT NOW.
UH, WE'RE CONTINUING TO HAVE PEOPLE CALL IN AND WE'RE CONTINUING TO REACH OUT AND WE WILL CONTINUE TO SUPPORT OUR CUSTOMERS AND WE WANT THEM TO CALL US SO THAT WE CAN THANK YOU VERY MUCH.
DEPUTY GENERAL MANAGER, MADAME CHAIR, WITH YOUR PERMISSION, I'D LIKE TO GO BACK AND CLARIFY TWO RESPONSES.
ONE IN RESPONSE TO COUNCIL MEMBER ALTON, ONE RESPONSE TO YOU WITH RESPECT TO THE DECK CLOSING, UH, BOTH, UM, GENERAL MANAGER, JACKIE SERGEANT ARE RESPONDED TO COUNCIL MEMBER HALL TWO, AND THE CLOSING OF DECO ONE, BOTH ANSWERS WILL CORRECT THE DATE FROM SOMEONE ON THE OUTSIDE, LOOKING IN.
THEY CAN PROBABLY MRS. JEWETT.
SO MY ANSWER IS THAT THE PLANT WILL CLOSE SOME TIME AFTER THE END OF THE SUMMER PEAK AND TOWARD THE END OF THE YEAR IS CORRECT GENERAL, MAN, I'LL PUT UP OCTOBER 31ST, BUT OCTOBER 31ST IS THE VERY EARLIEST THAT WE COULD CLOSE THE PLANT BASED ON THE NOTIFICATION.
SO AGAIN, WE DO NOT HAVE A SPECIFIC DATE YET BECAUSE IT DEPENDS, BUT IT WILL BE CLOSING BEFORE THE END OF THE CALENDAR YEAR.
NO, SENDING AN OCTOBER 31ST THAT'S IN RESPONSE TO COUNCIL MEMBER ALTER OUR RESPONSE TO YOUR QUESTION ABOUT JOSH.
SHARLIN MY VICE PRESIDENT INFORMED ME THAT WE PUSHED THAT OUT TO THE FALL NOW BECAUSE OF SOME CONCERNS AGAIN ABOUT COVID.
SO ONCE WE PICKED THAT UP, I WILL BE ABLE TO, WILL WE BE ABLE TO GET A REPORT ON HOW MANY PEOPLE ARE TAKING US UP ON THAT? OKAY.
I'LL WAIT FOR THE AAV PERSON TO PUT UP THE PRESENTATION.
AND IF NOT, I CAN GO BECAUSE YOU ALL HAVE THE PRESENTATION IN FRONT OF YOU.
IS THIS THE ONE WE'RE LOOKING FOR RIGHT HERE? I SEE JUST THE PIXEL SCREEN AS WE SAW AT THE BEGINNING,
[4. Third Quarter Operations BriefingSponsors]
THE AUSTIN ENERGY OPERATIONAL UPDATE.THAT'S THE ONE LITTLE, THANK YOU.
THE PRESENTATION IS UP NOW, BY THE WAY.
THEY MAY BE SENDING THIS COUNCIL MEMBER.
IT'S REASSESSED ON A TV SCREEN.
SO I'LL GO FROM, UM, WHAT I HAVE AND HOPEFULLY WE'RE GOING TO BE ALIGNED BECAUSE I'M NOT SEEING NO, NO, NO.
SO AGAIN, JUST FOR THE FORMALITY CHARLES DICKERSON, CHIEF OPERATING OFFICE, AUSTIN ENERGY, AND I DELIVERED THE THIRD QUARTER OPERATIONAL OR BAY.
AND THANK YOU, MADAM CHAIRMAN AND VICE CHAIR MEMBERS OF MANY FOLLOW ME PRESENT.
I'M FLIPPING TO THE NEXT SLIDE, BUT YOU'LL SEE TWO ORANGE PITCHES AND THE, UM, THE DISCUSSION TOPICS, WHICH WE'LL TALK ABOUT, UH, PERFORMANCE, UH, ON SITE ENGINE RESOURCE TO THE APARTMENT.
ONE OF THE OTHER THINGS THAT I'M GOING TO BE SPEAKING TO IS OUTREACH PROGRAM, WHICH WE FEEL REALLY GOOD ABOUT PEOPLE'S STATEMENTS I'VE OUT DOING.
WE INTRODUCED THE ACRONYM REACH AS PART OF THE GENERATIONAL, UM, RESOURCE PLAN THAT WE COMPLETED, UH, AND IN CONJUNCTION WITH AMENDMENTS OF THE CITY AND VARIOUS STAKEHOLDERS, UM, THAT WAS PURPOSE TO DRIVE DOWN TO ZERO CARBON BASED GENERATION, UH, ON THE SHIP AND ITS PURPOSE TO, UM, TO DO THAT BY 2035, UH, WE HAVE SOME INTERIM STEPS THAT WE'RE GOING TO TAKE.
SO WE'RE JUST NOT SITTING AND WAITING AND REACH WAS ONE OF THOSE WHERE WE'RE GOING TO BE SCALING BACK ON THE RUN TIME FOR OUR CARBON BASED UNITS.
AND WE'RE GONNA, YOU'RE GOING TO SEE IN A SLIDE COMING UP THAT THAT'S WORKING REALLY WELL.
UM, I CANNOT SEE THE WEB SCREEN CAUSE I'M DOING MY PRESENTATION OFF OF MY COMPUTER.
I DON'T KNOW IF IT'S THERE OR NOT.
HAS IT BEEN LOADED OR NO? YES, SIR.
I'M LOOKING AT AUSTIN ENERGY OPERATIONAL UPDATE.
I CAN GO FORWARD OR JUST STAY HERE, WHICHEVER YOU PREFER.
UH, I'LL JUST LET EVERYONE KNOW WHICH PAGE OUR MORNING AND YOU CAN JUST FOLLOW ALONG.
I THINK THAT'S HOW WE'RE GOING TO HAVE TO DO IT.
SO I'M ON SLIDE FOUR, MADAM CHAIR, IF YOU ALL COULD TURN AND THAT SLIDE IS TITLED PROMOTION AVAILABILITY AND START SUCCESS.
AND BASICALLY YOU'LL SEE, AS I REPORT EVERY QUARTER, UM, WHAT THE TARGET LEVELS ARE, WHAT THE ACTUALS ARE.
AND THE REASON FOR THE DELTA'S THIS TIME ARE BASICALLY DUE TO REFUEL AND, UH, AT OUR, UM, TEXAS PROJECT ON SOUTH TEXAS PROJECT AND GENERALLY SEASONAL MAINTENANCE THAT WE DO.
[00:55:01]
UH, THE AVAILABILITY WROTE AT THE TARGET IS, IS EXPECTED FOR THIS TIME OF YEAR DURING THIS REPORT.THE NEXT SLIDE THAT I'VE GONE TO NOW IS NET GENERATION AND LOAD ANALYSIS.
THE TAKEAWAYS FROM THIS SLIDE IS THAT IT'S INTERESTING THAT IN THE UPPER RIGHT HAND CORNER, YOU'LL SEE THAT WE GENERATED SLIGHTLY MORE ENERGY THAN OUR CUSTOMERS CONSUME.
UM, BUT IT CAN'T NECESSARILY MEAN THAT WE ACTUALLY WAS NET POSITIVE IN THAT REGARD, BECAUSE THIS IS A FUNCTION OF THE TIMING WHEN WE GENERATED, AS OPPOSED TO THE TIME WHEN WE USED IT, IF IT'S INTERESTING TO SEE THE DIFFERENT GENERATION MIXES AND HOW THEY CONTRIBUTE.
AND LASTLY, YOU'LL SEE IN THE BOTTOM RIGHT HAND CORNER THAT OUR RENEWABLES ARE 41% OF THE AMOUNT THAT WE CONSUME.
AND THAT NUMBER WILL FLEX DEPENDING ON HOW MUCH LOAD, UM, OUR CUSTOMERS ARE USING OR HOW MUCH ENERGY ARE USING OVER THE COURSE OF THE REPORTING PERIOD.
UM, BUT AS WE BRING MORE RENEWABLES ON, YOU'LL SEE THAT THAT HIGH WILL JUST OPPOSED TO YELLOW.
THE NEXT SLIDE THAT I'M MOVING TO, UH, IS THE SYSTEM METRICS.
UM, I'M PROUD TO REPORT THAT IF YOU WILL GO UNDER LIGHT HAND, THE LEFT HAND SIDE, SADIE, WHICH STANDS FOR SYSTEM DURATION, THOSE LINES ARE STARTING TO CONVERGE.
THE ORANGE LINE IS STARTING TO COME DOWN IN SOME PREVIOUS REPORTS.
HE WAS MOVING IN THE WRONG DIRECTION AND KNEW THAT WE WERE WORKING ON SOME VEGETATION MANAGEMENT ISSUES.
WE WERE WORKING ON SOME EQUIPMENT ISSUES AND WE'RE STARTING TO GET THAT UNDER CONTROL.
AND YOU'LL SEE THE CHART AND THE LOWER RIGHT HAND SIDE, WHICH IS SAFETY, WHICH IS THE FREQUENCY OF OUTAGES ACROSS THE SYSTEM IS GOING DOWN.
NOW, SOMEONE MAY SAY, WELL, MR. DIXON, WHAT ABOUT THE CHART IN THE UPPER RIGHT HAND CORNER, WHERE THAT LINE IS GOING IN THE OPPOSITE DIRECTION.
THAT IS A FUNCTION OF THE MATH OF THE TWO LOWER CHARTS.
SO KATIE, THE ACRONYM THAT BEGINS WITH THE C IS THIS A FUNCTION OF DIVIDING THE SAIDI BY THE SAFETY.
AND IF I CAN PUT THIS IN PRACTICAL TERMS, WHAT THIS MEANS IS THAT WE'RE HAVING FEWER OUTAGES, BUT FOR THE OUTAGES THAT WE HAVE THAT LAST, MY MOBILE LONGER.
UM, AND SO WE'RE GOING TO BE WORKING ON HOW DO WE DEAL WITH THOSE OUTAGES, THE ONES THAT WE'RE HAVING REMAINED AND HOW DO WE GET THOSE TO BE RESTORED IN A SHORTER PERIOD OF TIME.
SOME ORGANIZATIONS YOU COULD SEE A REPORT WHERE YOU COULD HAVE KATIE LOOKING REALLY GOOD, BUT YOU COULD STILL HAVE LONG DURATIONS ASSISTANT SAID THE DOMINATED, THE FREQUENCY IS, IS, IS OBSCURE NET.
AND SO TO ME, THIS IS A GOOD STORY THAT BOTH THE SAFETY AND THE SAFETY ARE COMING DOWN, I'LL PAUSE.
CAUSE I SAID A LOT, THEN SOMETIMES IT CAN BE A LITTLE TECHNICAL CONFUSING ON ANY QUESTIONS ON THESE RELIABILITY METRICS.
SO I'LL GO TO OUR CARBON FOOTPRINT.
THIS IS RENEWABLE GENERATION AS A PERCENTAGE OF LOAD AS THIS IS A DIFFERENT LOOK AND YOU'LL SEE IT FLEXES WITH THE SEASONS.
UH, AND THE MOST THAT WE WOULD EXPECT, UH, UH, LIKE JANUARY WHEN IT'S REALLY WINDY, UH, AND BECAUSE WE TEND TO BE A SUMMER PEAKING, UH, UTILITY, OUR LOAD WOULD GO WOULD BE LOWER AND SOMEWHERE OUR RENEWABLES WOULD BE HIGHER AS YOU LOOK AT, UM, MAY AND JUNE, UH, WHEN LOAD PICKS UP, IT'S GONNA FLEX THAT, THAT FRACTION AND SORT OF PERCENTAGES OF RENEWABLES ARE GOING TO COME DOWN AS A PERCENTAGE OF LOAD.
BUT AGAIN, AS WE ADD MORE RENEWABLES, YOU'LL SEE THAT THAT NUMBER WILL, THE BARS WILL START TO BE HIGHER OVER TIME IS MY FAVORITE SLIDE IN THE DECK.
THIS REPORT, I'M GOING TO SLIDE NOW SLIDE NUMBER NINE, FOR THOSE OF YOU WHO ARE FOLLOWING IN THE WRITTEN MATERIAL ON ITS OWN REGION AND IT'S TABLET REACH.
UM, THIS AGAIN IS, UH, AUSTIN ENERGY'S PLAN THAT WAS AGREED TO WITH THE VARIOUS STAKEHOLDERS AND APPROVED BY COUNCIL FOR HOW WE WOULD WORK TO MINIMIZE OUR CARBON FOOTPRINT, UH, AND ADVANCE A FORMAL SHUTTING UNITS NOW.
AND THE LONG AND SHORT OF IT IS, IS THAT WE HAVE CHANGED THE OFFER CURVE OR THE PRICE AT WHICH WE'RE WILLING TO SELL, UH, OUR POWER PLANTS INTO THE MARKET DURING THE SHOULDER PERIODS FOR ACTUALLY DOING THE ENTIRE YEAR.
BUT DURING THE SHOULDER PERIOD, SINCE THE PRICES WILL COME DOWN, THAT THE MARKET IS WILLING TO PAY, WE'VE ADJUSTED OUR PRICE UP, THEN THE UNIT BE DISPATCHED.
AND WHAT YOU'LL SEE IS THIS, THE FIRST NUMBER IN THE TOP OF THE CHART, THE 1,516,000 AND SOME CHANGE IS WHAT THE WAS THE ACTUAL AMOUNT OF CARBON THAT WE ADMITTED.
YOU'LL SEE THE NUMBER NEXT TO IT.
THE 1.996 IS WHAT WE HAD FORECASTED.
AND IF THE FORECAST WOULD HAVE BEEN PERFECT AND WE WOULD HAVE BEEN ADMITTED TO 1.56, IF WE DIDN'T HAVE REACHED, HOWEVER, BECAUSE WE HAD REACHED AND THE UNITS DIDN'T RUN AS MUCH AS THEY OTHERWISE WOULD HAVE.
WE WERE ABLE TO REDUCE 480,000
[01:00:01]
TONS OF CARBON JUST AS A RESULT OR REACH ALONE.AND THEN WE HAD SOME OTHER REDUCTIONS BASED ON OUTAGES.
AND THE FACT THAT OUR MODEL ISN'T EXACTLY PERFECT BECAUSE NO MODEL IS.
AND SOMETIMES THE, UM, THE CONDITIONS FOR ONE POWER PLANTS WILL BE CALLED WOULD BE SLIGHTLY DIFFERENT THAN WHAT WE ANTICIPATED WITH THE SIGNIFICANT TAKEAWAY FROM THIS SLIDE IS THAT WE REDUCED 480,000 TONS OF CARBON THAT WE CAN DEFINITIVELY MEASURE AS A RESULT OF OUR REACH PROGRAM.
THIS IS A REALLY GOOD STORY FOR THE CITY OF, FOR THE ENVIRONMENT, UH, AND FOR THE STRATEGIC DIRECTION OF CITY COUNCIL HAS US EXECUTED.
AND I JUST THINK IT'S, WE'RE PAUSING HERE A MOMENT TO SEE IF THERE ARE ANY QUESTIONS.
THIS IS A LIST OF THE WORST PERFORMANCE THEATERS.
UH, I DON'T WANT TO GO INTO TOO MUCH DETAIL, SO I'LL BE BRIEF AT THE END OF THE DAY, EVEN AS WE CONTINUE TO MAKE THE SYSTEM MORE RESILIENT, MORE RELIABLE, THERE'S ALWAYS GOING TO BE SOME FETUS THAT ARE WORSE THAN OTHERS.
AND SO THIS CONCEPT OF WORST PERFORMING FETUS, WHICH IS USED ALL OVER THE COUNTRY IS PURPOSEFUL CONTINUOUS IMPROVEMENT.
SO YOU'LL TAKE THE BREAST FEED AS YOU HAVE, NO MATTER HOW GOOD THEY ARE, THERE'S STILL SOME GOING TO BE NOT AS GOOD AS THE OTHER ONES.
YOU'LL PUT EXTRA EFFORTS INTO MAKING CERTAIN THOSE ARE GOOD.
THEY WILL MOVE OUT OF THE WORST 10 AND SOME WILL ALL NECESSARILY FALL INTO THE WORDS 10, EVEN IF THEIR PERFORMANCE HASN'T CHANGED AND THEN WE'LL START FOCUSING MORE ON NO.
SO IT'S PURPOSELY AGAIN FOR CONTINUOUS IMPROVEMENT TO THE RIGHT.
YOU'LL SEE SOME OF THE THINGS THAT WE'RE DOING.
WE'VE INCREASED VEGETATION LINE CLEARANCE.
AND THAT CAME OUT IN SOME OF THE BUDGETS AND DISCUSSIONS WHERE WE'VE INCREASED OUR VEGETATION BUDGETS.
WE'RE DOING SOME THINGS WITH SOME TECHNICAL ISSUES LIKE, UM, FEEDERS AND FUSE COORDINATION.
AND WE DON'T RECLOSERS AND A WHOLE NUMBER OF THINGS, AND THOSE THINGS ARE PURPOSE.
SO THAT NEXT YEAR, UM, SO IT GOES OVER THE COURSE OF A CALENDAR YEAR.
NONE OF THESE FEEDERS SHOULD FALL IN THAT LIST BECAUSE OF THE ADDITIONAL WORK WE'RE DOING.
UM, I'M NOW MOVING ON TO SLIDE 12, WHICH IS JUST TOO COOL, UH, IN THE LONG AND SHORT OF IT IS ALL RAIN THERE.
WE'RE ON TARGET ON FOUR POINTS, THREE, FOUR, UM, THE MIDDLE OF PLANT AND FOR THE AUSTIN COMMUNITY COLLEGE.
AND A GOOD STORY IS THAT WE'RE ON TARGET.
DESPITE THE FACT THAT WE LET HAS TO CHANGE THIS WAS QUOTED IN THE LAST SLIDE THAT I'LL GO TO IS OUR FOCUS, WHICH WHEN I FIRST CAME, I TOLD YOU, I THINK IT SHOULD BE A REPORT CARD THAT YOU GRADE ME BY.
AND FOR THE FIRST TIME, I'M HAPPY TO REPORT TO JUST EVERYTHING IS GREEN WITH THE EXCEPTION OF ASSET MANAGEMENT, OR THAT'S TOTALLY A BIG HILL TO CLIMB.
AND WE BELIEVE IN THE THINGS THAT WE'RE DOING TO QUANTIFY MORE UNIQUELY, ALL THE DIFFERENT ASSETS.
WE HAVE TENS AND HUNDREDS OF THOUSANDS OF ASSETS IN VARIOUS SIZES AND DEFINITIONS.
WE WANT TO QUANTIFY THEM SO WE CAN PUT TOGETHER PLANS FOR HOW WE CAN DO PREVENTATIVE MAINTENANCE AND PREDICTIVE MAINTENANCE.
SO OVERALL THIRD QUARTER, I THINK, UM, WE, WE MAY HAVE MADE THE HONOR ROLL, EVEN IF I SAY SO MYSELF AND WITHOUT OUR PROMISE.
SO THAT LOOKS LIKE HIGHEST STOCK NEARLY.
UM, SO THANKS FOR ALL THE GOOD WORK AND THANK YOU FOR THANKS FOR CONTINUING TO PROVIDE THAT IN FRONT OF ABOUT SO THAT WE CAN REALLY TRACK PROGRESS IN ALL OF THOSE AREAS.
THAT'S REALLY VERY, VERY HELPFUL.
DO YOU HAVE MAYOR, MAYOR ADLER? I JUST DON'T WANT THE CHART TO GO BY TOO QUICKLY ON REACH, UH, YOU KNOW, IN HINDSIGHT AND LOOKING BACKWARDS AT SUCH A SIMPLE AND ELEGANT, UM, UH, ACTION TO TAKE THAT COULD HAVE, AS WE SEE NOW SUCH INCREDIBLY DRAMATIC IMPACT ON THE, ON THE CARBON FOOTPRINT.
IT WAS SIMPLE, AND IT ACTUALLY IS WORKING IN THE WAY THAT YOU SAID THAT.
SO CONGRATULATIONS FOR THAT COUNCIL MEMBER.
DID YOU HAVE A QUESTION? OKAY.
NO, I JUST REALLY WANT TO SAY THANK YOU FOR THE JOB THAT YOU ARE DOING.
UH, UH, I HAD A LOT OF DOUBTS THAT YOU WERE GOING TO BE ABLE TO REACH THAT, BUT, UH, I, I, WHEN I HAD, AND, UH, WENT WITH Y'ALL GUY, THEN, UH, I'M GLAD THAT THE REPORT YOU'RE SURE.
AND IT'S POSITIVE AND THEY'RE DOING SUCH A GREAT JOB.
OTHER COMMENTS, QUESTIONS COUNCILMEMBER OFTEN.
SO WE'VE DONE, WE'VE DONE A LOT OF THINGS OVER THE LAST YEAR, BUT, UM, THE REACH, IF I'M NOT MISTAKEN WAS NOT IN EFFECT FOR THE WHOLE FISCAL YEAR, IS THAT CORRECT? WHEN DID IT,
[01:05:02]
DO YOU HEAR ME COUNCIL MEMBER NOW AGAIN? OKAY.WE IMPLEMENTED REACHING AFTER WE COMPLETED DEGENERATION RESOURCE PLAN AND WE GOT COUNCILS.
AND SO WHEN DID THAT, CAUSE THIS IS THE YEAR TO DATE, WHICH I ASSUME IS THE FISCAL YEAR TO DATE.
DO YOU REMEMBER WHEN WE PASSED THE PLAN AND YOU STARTED WITH REACH, UM, THREE 26 OF THIS YEAR, I BELIEVE SOMEWHERE AROUND MARCH AND THAT TIMEFRAME.
SO THIS IS, UM, NOT OVER, THERE'S A SAVINGS OF ALMOST 500,000 TIMES OVER, YOU KNOW, LESS THAN SIX MONTHS TIME PERIOD.
SO WE WOULD EXPECT THAT ON AN ANNUAL BASIS, MOVING FORWARD, WE MAY BE ABLE TO, UM, BE REDUCING THAT EVEN FURTHER IF IT'S IN EFFECT FOR THE FULL FULL PERIOD, IS THAT RIGHT? BUT, BUT WE, AGAIN, WE, THE SHORT ANSWER IS YES, BUT I WANT HIM TO CLARIFY THAT THAT NUMBER IS OBTAINED BASED OFF OF A FORECAST THAT WE DO ON HOW MUCH WE THINK THE PLANTS WILL RUN AND HOW MUCH THEY ACTUALLY RUN.
AND THEN WE DO A CALCULATION ON HOW MUCH CARBON WE WOULD HAVE EMITTED IF WE HAD NOT HAD REACHED, BUT I AGREE OVER THE COURSE OF A FULL YEAR, WE SHOULD SEE FAR MORE COMMON REDUCE.
AND AS WE BOOK AND AS WE BECOME MORE FAMILIAR AND MORE COMFORTABLE WITH THE USE OF REACH, BECAUSE ONE OF THE THINGS THAT WE'RE BALANCING THIS APPROACH WITH IS THE AFFORDABILITY.
BECAUSE FOR EVERY TIME THAT WE DON'T ADMIT THAT'S A LOST OPPORTUNITY TO SELL POWER WINS IN THE MARKET, WHICH IS FINE, BUT WE'RE BALANCING THAT.
AND AS WE ARE GETTING EVEN BETTER RATES, THEN WE WILL START APPLYING IT TO OTHER UNITS BECAUSE RIGHT NOW WE'RE APPLYING IT TO OUR COAL UNITS.
WE'LL START LOOKING AT APPLYING THIS APPROACH TO DISPATCHING OUR UNITS THAT ARE GAS ROUTE UNITS AS WELL.
BUT THE, BUT THE SAME STILL HOLDS THAT WE DIDN'T HAVE REGION FOR SIX MONTHS OF THE, OR NO, IT WAS SIX MONTHS, BUT FOR FIVE MONTHS OF PROCESS, AT LEAST, UM, SO THAT WE MIGHT EXPECT THAT OUR REDUCTION WOULD BE GREATER FOR THE YEAR.
WE EXPECT AROUND ABOUT A 30% REDUCTION IN CARBON BASED OFF OF OUR MODEL THIS YEAR.
AND THIS IS JUST A 20% FOR THIS YEAR.
MA'AM I HAVE A QUICK QUESTION.
IF I MISSED IT, BUT WHAT IS A FEEDER? ARE THOSE JUST LIKE PERFORMANCE OR NO? THAT'S A VERY GOOD, THAT'S A VERY GOOD QUESTION.
I HAVE A VERY QUICK, SIMPLE ANSWER.
THINK OF A FETUS, A BIG BRANCH COMING OFF OF A TREE AND THINK OF A SMALL LIMBS AS A, WHY IS THIS GOING TO THE INDIVIDUAL LEAVES? AND THE LEAVES ARE LIGHT HOUSES.
SO WHEN WE DO WORK ON A FEEDER, IN THEORY, ALL OF THE SMALLER BRANCHES CONNECTED TO THAT FEED IN A HOUSING SHOULD BENEFIT FROM IT.
I'LL HAVE TO LOOK BACK AT THE CHART WITH THAT OTHER QUESTIONS.
[6. Identify items to discuss at future meetings.]
WELL, I PAIN TAKES US TO OUR LAST, OUR LAST AGENDA ITEM, WHICH IS, DOES ANYBODY AT THIS POINT HAVE A SUGGESTION FOR THINGS I'D LIKE TO TALK ABOUT IT NEXT MONTH OR IN TWO MONTHS? OKAY.WELL, THANKS FOR ALL THE GREAT WORK TO ALL OF OUR AUSTIN ENERGY STAFF.
THANK YOU, COLLEAGUES, MAYOR, PRETEND MARISA, SORRY, CHAIR.
UM, JUST POPPED IN MY HEAD BECAUSE I'VE ACTUALLY HAD CONSTITUENTS TALK ABOUT AUSTIN ENERGY AND THE TA AND TESLA.
AND I DON'T KNOW IF, IF YOU KNOW, STUFF WOULDN'T BE PREPARED, BUT I THINK IT'D BE INTERESTING TO HEAR SOME KIND OF PRESENTATION ON THE PARTNERSHIP AND YOU HAVE ANY LIKE, UM, INTERNSHIP OPPORTUNITIES OR JOB OPPORTUNITIES, OR, UM, JUST FEELS LIKE THIS, THIS, THIS COMMITTEE IS ONE THAT MAYBE WOULD BE WORKING CLOSELY WITH, WITH THEM AS THEY TALKED ABOUT ALL THE, UM, YOU KNOW, OPPORTUNITIES THEY WERE BRINGING INTO OUR COMMUNITY.
IT'D BE INTERESTING TO KNOW WHAT KIND OF DISCUSSIONS ARE HAPPENING BEHIND THE SCENE.
AND IF IN FACT, AS PART OF THIS, THAT'S GREAT.
I THINK THAT'S A GREAT SUGGESTION.
WE'LL MAKE SURE THAT'S ON THE NEXT AGENDA.
WHAT COLLEAGUES? WE STAND ADJOURNED AT TWO 41.