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[00:00:47]

>> WOULD EVERYONE PLEASE BE SEATED? THANK YOU.

MAYOR, WE DO HAVE A QUORUM.

>> MAYOR NIRENBERG: OKAY.

[1. Briefing by CPS Energy on proposed strategic investments needed to respond to the evolution of the energy industry; changing expectations of our customers and community; and enabling new and emerging technologies. [Paula Gold-Williams, CPS Energy President & CEO]]

GREAT.

THANK YOU, EVERYONE, FOR ATTENDING TODAY.

WE HAVE OUR BIWEEKLY UTILITY BRIEFING.

TODAY WE HAVE CPS ENERGY.

PAULA, IF YOU WANT TO GO AHEAD AND KICK US OFF.

>> OKAY.

SO, I AM EXCITED TO BE HERE TO JUST TALK TO YOU TO GIVE YOU AN UPDATE.

AS COMMITTED, WE ARE, AS A TEAM OF CPS ENERGY, REALLY TRYING TO GET DIALOGUE AND INFORMATION OUT.

I'M VERY GLAD TO SPEAK IN FRONT OF THE COUNCIL.

VERY GLAD THAT WE'VE GOT THE ATTENDANCE HERE.

SO THESE ARE IMPORTANT FOR US TO DO.

I DO WANT TO SAY THE PRESENTATION THAT WE'RE GOING TO DO TODAY IS WHAT WE DID IN FRONT OF OUR BOARD ON TUESDAY WITH A FOCUS ON THIS OVERALL STATUS OF WHERE WE ARE.

I WANT TO SAY A COUPLE OF THINGS BEFORE I GET STARTED, BECAUSE WE'VE GOTTEN SOME INPUT ALREADY ABOUT, YOU KNOW, WHERE ARE WE AND ARE WE LOCKING IN AND, YOU KNOW, THE ASPECTS OF HOW WE'RE LOOKING AT WHERE WE'RE GOING TO GO JUST BASED UPON WHAT WE KNOW TODAY.

YOU WILL GET A DISCUSSION ABOUT WHAT WE CALL THE FLEXIBLE PLAN.

WE'RE GOING TO GO FIND AND TALK ABOUT IS IT A PLAN? IT'S IS PLAN BUT IT'S NOT A BAKED PLAN THAT HAS NO FLEXIBILITY.

THE OPERATIVE WORD IS FLEXIBLE.

AND SO EVERY YEAR IT MAY NOT BE SOMETHING THAT WE TALK ABOUT.

EVERY YEAR WE CREATE A LOOK AND VIEW OF THE FUTURE BASED UPON WHAT WE KNOW.

AND WE ACTUALLY DO MULTIPLE UPDATES AND THINKING AND SCENARIOS.

THAT'S PLANNING.

THAT'S LONG-TERM STRATEGIC PLANNING BUT IT DOES NOT LOCK US INTO ANY PARTICULAR THING.

IT IS JUST A LOGICAL PLAN TO LOOK AT THE TECHNOLOGY AND THE THINGS THAT WE KNOW TODAY AND WHAT THAT VIEW MIGHT LOOK LIKE GOING FORWARD.

BUT AS WE HAVE SEEN OVER THE LAST DECADE, A LOT OF THINGS HAVE CHANGED.

RENEWABLES AND THE PRICING AND THEIR AVAILABILITY AND THE INTEREST IN THE MARKET HAS EXPANDED.

WE DIDN'T SEE WHAT WE HAVE TODAY IN 2018.

IF YOU ASKED US WHAT THE MARKET WOULD LOOK LIKE BACK IN 2008, WE WOULDN'T HAVE BEEN ABLE TO PREDICT ALL THE ADVANCES THAT HAVE COME ALONG.

WE WOULDN'T HAVE BEEN ABLE TO PREDICT THAT IPHONES WOULD LOOK AND WORK AND OPERATE THE WAY THEY DO.

AND SO, AGAIN, WE ARE THOUGHTFUL.

WE ARE CREATING PLANS AND ACTIVITIES THAT WE CAN ACTUALLY ATTAIN AND APPLY, AND WE WANT TO HAVE DIALOGUE.

THE OTHER THING, I'LL JUST START AGAIN AND MAKE SURE THAT IT'S CLEAR.

WE ARE GOING TO GO AROUND THE COMMUNITY TO TALK ABOUT WHAT ARE WE THINKING, WANTING TO HEAR BACK FROM EVERYONE WHAT DO YOU THINK ABOUT THAT.

WHAT ARE THE REAL IMPLICATIONS OF THINGS AS WE MOVE FORWARD AND WHAT ELSE DO WE NEED TO CONSIDER IN SHAPING THE PLAN? AND I WOULD PROMISE YOU WHEN WE SHOW UP NEXT YEAR THE PLAN WILL BE DIFFERENT BECAUSE WE'LL BE EVOLVING IT AND MOVING IT AND SHAKING IT ALL AROUND THIS YEAR.

AND THEN WE'LL GIVE YOU THE LATEST UPDATE OF WHAT WE HAVE.

AND MAYBE THE LAST THING, YOU KNOW, SOMEONE SAID IS THIS THE RIGHT TIMING TO HAVE THE DISCUSSION? IT'S THE RIGHT TIMING TO HAVE THE DISCUSSION BECAUSE WE'RE NOT PROPOSING ANY BUILD OUT OF ANY PARTICULAR GENERATION.

WE HAVE MORE GENERATION CURRENTLY THAN WE NEED SO THIS IS A GOOD TIME TO START THE CONVERSATION ABOUT WHAT OUR POSSIBILITIES ARE SO WE CAN TALK ABOUT IT BEFORE WE MAKE ANY FORMAL DECISION GOING FORWARD.

AND THE TIMING, WE'RE REALLY EXCITED BECAUSE, YES, WE DID AND WE ARE ABSOLUTELY COMMITTED TO THE CLIMATE ACTION WORK.

AND THAT IS A HUGE INPUT.

WE ARE STEPPING UP THAT AND THE PUBLIC INPUT IS RAMPING UP ON THAT.

THOSE ARE GOING TO BE CONNECTED TO ULTIMATELY WHAT WE DO.

AND WE ARE JUST IN CONVERSATION SO I THINK I'M GOING TO GET HELP, I THINK.

I DON'T SEE -- WELL, MAYBE THIS ONE.

IS THAT IT?

[00:05:01]

OKAY.

HERE WE GO.

I GOT IT.

TECHNOLOGY.

SO I'M GOING TO TIE IN A BIT ABOUT KIND OF SOME EVENTS AND THINGS THAT WE'VE DONE.

WE THINK IT'S REALLY IMPORTANT TO HAVE THE DIALOGUE.

WE THINK IT'S REALLY IMPORTANT TO ASK MORE PEOPLE TO HELP US THINK ABOUT THE SOLUTIONS AND ACTIVITIES OF WHAT WE'RE DOING.

AND WE THINK THE THOUGHT LEADERSHIP AND THE VIEWS OF WHAT WE WANT OUR COMMUNITY TO BE TODAY AND IN THE FUTURE ARE REALLY A PART OF THIS THOUGHT LEADERSHIP THAT REALLY BELONGS TO ALL OF OUR COMMUNITY.

SO I'M GOING TO LINK THE THOUGHT LEADERSHIP CONCEPT TO THE FLEXIBLE PATHLAN.

AND WE HAD A CONFERENCE, IT WAS THE SECOND ANNUAL FUTURE OF ENERGY SYMPOSIUM.

WE HAD LAST YEARS SYMPOSIUM AT ST. MARY'S.

THIS YEAR WE HAD IT AT TEXAS A&M UNIVERSITY SAN ANTONIO.

DR. CYNTHIA MATSON WAS OUR HOST AND THE POINT WAS WE WENT TO THEIR BEAUTIFUL CAMPUS AND WE INVITED LEADERS.

THOSE LEADERS YOU SEE THERE TO COME IN AND LET'S HAVE A DIALOGUE ABOUT THE BROAD ASPECTS OF ENERGY.

AND SO WE HAD DR. CAVANAGH CAME IN AND HE HAS BEEN STUDYING THE ENERGY INDUSTRY FOR DECADES.

AND THERE WAS A GOOD CONVERSATION WITH HIM ABOUT THERE ARE SO MANY PARALLELS TO ENERGY AND THE DIFFERENT THINGS THAT THE ENERGY INDUSTRY HAS BENEFITED FROM.

ONE OF THE MAJOR THINGS HE FOCUSED ON WAS THE EFFORT BROADLY ABOUT ENERGY EFFICIENT APPLIANCES THAT HAVE BEEN RUNNING REGARDLESS OF WHAT'S HAPPENED IN THE ENERGY INDUSTRY HAVE, IN FACT, HELPED EVERYONE WITH CONSERVATION.

AND WE THINK TO A GREAT DEGREE IT'S WHY, IN PART, THAT OUR CONSERVATION PROGRAM, THE STEP PROGRAM, HAS BEEN SO SUCCESSFUL.

SO HE KIND OF TALKED ABOUT IT FROM THE CREATION AND ALSO FROM THE ASPECT OF POLICY HAS BEEN IMPORTANT.

IN THE CASE OF APPLIANCES, IT'S BEEN FEDERAL POLICY BUT I THINK HE REALLY ALSO PUT IT TO US THAT LOCAL POLICY IS ALSO HELPFUL AS WE START TO THINK ABOUT SOLUTIONS.

AND REALLY PUTTING TOGETHER WHAT WE CAN DO AS FAR AS BEING GOOD OPERATORS IN SERVICES OF THE COMMUNITY AND ALIGNING THOSE MESSAGES TO THE THINGS THAT THE COMMUNITY WANTS AND WHAT WE GET FROM INPUT FROM EVERYONE AND THROUGH THE COUNCIL.

THAT WAS HIS MAJOR POINT.

WE ALSO HAD DR. MASUDMINE AND BASICALLY HE HELPED FOUND THE CONCEPT OF IMPROVING THE GRID.

IT'S IMPORTANT THAT WE IMPROVE THE GRID DIGITALLY.

THE ANALOGY IS, YOU KNOW, YEARS AGO I WAS IN THE CABLE BUSINESS AND IN THE CABLE BUSINESS THEY HAD CONVERTER BOXES THAT WERE ANALOG BOXES.

YOU COULDN'T DO ANYTHING DO THEM UNLESS YOU MOVED THE SLIDE RULE.

THAT'S OLD TECHNOLOGY.

NOW WE HAVE DIGITAL TECHNOLOGY.

ARGUABLY WHETHER OR NOT YOU GET MORE CHANNELS, IS THAT GOOD OR BAD, BUT THE REAL ISSUE IS YOU GET CONTENT FOR YOUR CABLE BOX.

NOW YOU CAN GET STREAMING CONTENT ON YOUR PHONE OR COMPUTER.

BUT MOVING THE TECHNOLOGY ALONG TO ENABLE CHANGES IS WHAT'S REALLY IMPORTANT.

AND HE HAS BEEN THE ONE THAT HAS REALLY HELPED US THINK ABOUT IMPROVING THE GRID AND THINKING ABOUT WAYS TO OPTIMIZE IT AND MOVE OUR ENERGY SOLUTIONS FORWARD.

SO HE CAME IN AND HELPED TALK ABOUT THAT.

CLINT VINCE, HE IS A GLOBAL THOUGHT LEADER IN TERMS OF ENERGY.

AND ULTIMATELY I AM JOINING HIS EFFORT AND THOUGHT LEADERSHIP -- THERE'S A THINK TANK ABOUT SMART CITIES AND SAN ANTONIO IS IDENTIFIED AS A GLOBAL OPPORTUNITY FOR SMART CITY.

SO WE'RE GOING TO BE ABLE TO GET MORE PEOPLE TO CONTRIBUTE TO THE CITY'S GOALS ABOUT WHAT SMART CITY COULD BE.

WE ARE EXCITED ABOUT THAT.

AND DR. ADDICOT FROM ST. MARY'S TALKED TO US ABOUT THE SECURITY THAT HAS TO COME ALONG WITH ALL OF THIS ENABLEMENT.

IT'S GREAT TO HAVE NEW TECHNOLOGY BUT YOU GOT TO THINK ABOUT THE SECURITY AT THE SAME TIME.

AND THEN MR. HASSON, THE LAST PERSON THERE IS A SECURITY EXPERT.

I THINK IT WAS A LANDSCAPE TO SAY THAT WE HAD A MORNING SESSION AND PEOPLE CAME IN AND OUT.

I TOLD THEM THAT WE COULD TALK ALL DAY ABOUT ENERGY SOLUTIONS BECAUSE IT'S MULTIFACETED AND THERE'S A LOT OF THINGS GOING ON.

WE'LL BE TALKING ABOUT THIS IN PERPETUITY BECAUSE THERE ARE SO MANY MEATY THINGS FOR US TO THINK ABOUT THAT WE CAN SHAPE.

WE ARE COMMITTED TO DOING THAT SEMINAR EVERY YEAR.

BUT AT THE SAME TIME WE WILL DO OUR IMMEDIATE OUTREACH BECAUSE THIS IS THE COMMUNITY THAT WE LOVE AND SERVE AND WE WILL OPEN UP THIS DIALOGUE SO WE CAN CONTINUE TO MAKE OUR SOLUTIONS VERY ROBUST.

THESE ARE A COUPLE OF PICTURES.

I DON'T NEED TO GO THROUGH THEM

[00:10:01]

BUT I WILL SAY WE WERE ABLE TO GET THE MAYOR TO COME IN AND TALK ABOUT THE BROADER SOLUTIONS SET AND THEN THE CONNECTION, AGAIN, TO OUR ABILITY TO HAVE A FOCUS ON CLIMATE.

OUR ABILITY TO INTEGRATE SOLAR.

OUR ABILITY TO THINK ABOUT BROADLY THE QUALITY OF LIFE THAT GOES ALONG WITH THE PROGRAMS THAT WE CAN GENERATE.

SO WE HAD REALLY NICE NON-FIRESIDE CHATS.

WE HAD NO FIRE.

THOSE ARE THOSE PICTURES.

HERE WE GO.

SO IN REALIZING ALL OF THOSE THINGS THAT WE NEED TO THINK ABOUT, LIKE WHAT ARE THE POSSIBILITIES? WHERE CAN WE GO? THAT'S A VERY FLUID CONVERSATION.

WHAT I'M SHOWING YOU HERE, THOUGH, IS A CHART THAT YOU HAVE SEEN BEFORE.

BUT WHAT WE'RE DOING IS OPTIMIZING THE ASSETS THAT WE CURRENTLY HAVE.

WE HAVE $11 BILLION IN ASSETS.

THE MAJORITY OF THE ASSETS ARE IN THE EXISTING GENERATION FLEET.

WE HAVE ALL DIFFERENT TYPES OF ABILITY TO PRODUCE POWER, AND I'LL TALK ABOUT THAT MORE TODAY.

WE HAVE INVESTMENTS IN THE TRANSMISSION BUSINESS, THE DISTRIBUTION BUSINESS.

AND WE MANAGE THE RELATIONSHIP WITH THE CUSTOMERS.

SO WE HAVE ALL THAT.

THE ABSOLUTE REALITY OF WHERE WE ARE TODAY IS OUR DIVERSIFICATION STRATEGY WORKS.

WE HAVE BEEN ABLE TO INTRODUCE OVER 1,000 MEGAWATTS OF WIND, 500 MEGAWATTS OF SOLAR AND MORE TO COME.

BUT WHAT WE ALSO DO IS WE DO IT IN CONCERT AND WE LEVEL IT OUT AND WE'RE ABLE TO BALANCE AND OPTIMIZE THE OPERATION OF THE GENERATION WE HAVE FOR THE NEW RENEWABLES WITH OUR EXISTING PLANTS.

AND SO OUR EXISTING UNITS HELP FIRM UP THE POWER THAT WE HAVE TODAY AND MAKE SURE THAT THAT POWER IS RELIABLE.

RELIABILITY AND AFFORDABILITY ARE HUGE, HUGE REQUIREMENTS THAT ARE OUR OBLIGATION.

SO THAT ANY TIME THIS COMMUNITY WANTS TO OPERATE -- AND IT'S A 24/7 COMMUNITY -- WE HAVE GOT TO BE THERE TO TURN THAT POWER ON.

IT'S IN COMBINATION.

SO ONE SIDE OF THE CHART SAYS THE WAY WE SHARE UP RENEWABLES AND OPTIMIZE THEM TODAY IS WITH THE EXISTING FLEET.

BECAUSE THAT HAS ALWAYS BEEN WELL MANAGED WE HAVE BEEN ABLE TO INSERT WIND AND SOLAR IN A VERY REASONABLE WAY, PRETTY FAST OVER THE LAST 10 TO 15 YEARS.

AND, AGAIN, MORE TO COME.

WHAT WE REALLY BELIEVE IS THAT IN THE FUTURE IT WON'T BE THE FOSSIL GENERATION THAT WILL FIRM UP RENEWABLES AND OPTIMIZE THE FLEETS, IT WILL BE NEW TECHNOLOGIES.

AND, IN GENERAL, WE JUST SAY ENERGY STORAGE.

IT'S NOT JUST BATTERIES.

THERE ARE NEW CHEMISTRIES COMING OUT.

THERE ARE FLOW BATTERIES AND ALL DIFFERENT TECHNOLOGIES THAT ARE BEING REALLY RESEARCHED AND DEVELOPED ACROSS THIS GLOBE THAT WE ARE STUDYING.

AND WE BELIEVE THE ABILITY TO HAVE A CONCEPT OF A SEPARATE RENEWABLE SOURCE ALONG WITH RENEWABLE ENERGY WILL BE THE FUTURE.

THE REAL QUESTION AGAIN, AND WE HAVE TALKED ABOUT THIS BEFORE, IS HOW FAST WILL THAT BE? HOW FAST WILL THE ENERGY STORAGE SHOW UP IN AN ECONOMICAL WAY TO MAKE IT WORK? AND EVERYBODY'S WORKING ON IT.

AND WE ARE MONITORING IT AND WE ARE GOING TO DO, THIS YEAR, A PROJECT WHERE WE REALLY DELVE INTO THE COMBINATION OF RENEWABLES AND ENERGY STORAGE.

WE ARE VERY CLOSE TO FINALIZING THE DEAL THAT WE HAVE TO WORK OUT THE SPECIFICS, BUT SOUTHWEST RESEARCH INSTITUTE IS PARTNERING WITH US WITH A MAJOR MICROGRID PROJECT.

IT IS 10 MEGAWATTS OF ONE-HOUR STORAGE OR FIVE MEGAWATTS OF TWO-HOUR DURATION STORAGE.

BUT THE POINT OF IT IS RIGHT NOW WHILE THE ECONOMICS ARE STARTING TO GET BETTER, WE ARE GOING TO IMPROVE OUR ABILITIES TO MANAGE THOSE ASSETS.

WE ARE GOING TO IMPROVE OUR ABILITY TO MONETIZE THE ACTUAL ASSET INVESTMENT AND REALLY FIGURE OUT THE BEST WAY TO REALLY BRING VALUE BACK TO THIS COMMUNITY.

AND WE'RE NOT WAITING FOR IT TO BE SURE.

WE'RE NOT WAITING FOR THE PRICE TO GET DOWN TO SOME PARTICULAR LEVEL.

WE ARE VENTURING INTO IT BECAUSE IT'S A RIGHT INVESTMENT INTO THE FUTURE WHERE WE'RE HEADED.

THIS BASICALLY TALKS ABOUT WHY FLEXIBLE REALLY WORKS.

AGAIN, THERE'S STILL A REQUIREMENT ON THE TRADITIONAL SIDE TO MAKE SURE THAT WE ARE SERVING THE LOAD.

THAT WE HAVE TO DO THAT TODAY.

THAT WE ARE ACCOMMODATING GROWTH.

WE HAVE TO DO THAT TODAY.

AND THAT WE'RE ABLE TO REALLY PROVIDE THE GENERATION THAT ALLOWS US TO DO THE THINGS WE DO.

AND, AT THE SAME TIME, WE'RE LOOKING AT WHERE OUR NEW PATHWAY IS.

I JUST WANT TO REMIND WE HAVE A MAJOR SET OF PROGRAMS THAT ARE IN PLACE TO HELP US TRANSITION AND CONTINUE OUR PATH FROM WHERE WE ARE TODAY.

WE HAVE A GREAT ENERGY EFFICIENCY AND CONSERVATION PROGRAM.

ONE THAT IS FAIRLY UNIQUE ACROSS THE NATION.

OUR STEP PROGRAM HAS A

[00:15:01]

TREMENDOUS AMOUNT OF GREAT PROGRAMS IN THERE.

WE HAVE BEEN SUPPORTING DISTRIBUTED GENERATION, MORE SOLAR, MORE ROOFTOP SOLAR, MORE COMMUNITY SOLAR, AND MORE OF THAT IS TO COME.

AND THAT HAPPENS THROUGH OUR CONSERVATION PROGRAM.

WE ALSO HAVE, IT WAS POINTED OUT TO ME, PAULA, YOU DIDN'T TALK ABOUT DEMAND RESPONSE.

WE HAVE ONE OF THE BEST DEMAND RESPONSE PROGRAMS IN THE NATION.

200 MEGAWATTS REALLY HAPPENS FROM OUR CUSTOMERS CONTRIBUTING TO BRINGING DOWN THEIR DEMAND AT PEAK.

THAT'S WHAT WE ASK THEM TO DO WHEN IT'S REALLY HOT OR REALLY COLD.

BRING YOUR WE'RE NOT OVERTAXING OUR SYSTEM.

THE REAL IMPORTANT PART IS NOT ABOUT HOW WE OPERATE TODAY, BUT IF WE KEEP LETTING OUR PEAK GO UP AND UP AND UP IT WILL DRIVE US TO MAKE US MAKE AN INVESTMENT SOONER THAN WE NEED TO.

THAT'S THE WHOLE THING.

WE HAVEN'T HAD TO BUILD A PLANT.

I HAVE BEEN AT THE FACILITY, AT THE BUSINESS FOR 13 YEARS.

THE ORIGINAL PLAN SAID THAT RIGHT NOW WE WOULD HAVE A NEW FOSSIL FUEL PLAN.

AND WITH THIS CONSERVATION PROGRAM WE HAVE PUSHED THAT WAY OUT TO MAYBE NEVER WILL WE BUILD A THOUSAND MEGAWATT FOSSIL FUEL PLANT.

WE THINK THAT'S A REALITY.

IS THERE MORE POTENTIAL IN THE STEP PROGRAM WITH OTHER EXPANSIONS OF DEMAND RESPONSE AND OTHER THINGS? YES.

NOW, I'M GLAD TO SAY IT, GLAD TO HAVE A DIALOGUE ABOUT IT BUT I WANT TO MAKE SURE WE ARE DOING SOME AMAZING THINGS HERE.

AND WE CONTINUE TO LOOK AT RENEWABLES.

WE WILL ADD THEM BUT THE POINT IS I GOT ASKED A MONTH AGO, PAULA, ARE YOU GOING TO ADD MORE RENEWABLES TODAY? WE'RE NOT ADDING RENEWABLES TODAY, NOT BECAUSE WE DON'T THINK RENEWABLES ARE GOOD, IT'S BECAUSE RIGHT NOW THE COMMUNITY IS DOING GREAT IN CONSERVATION.

THE COMMUNITY IS TAKING ADVANTAGE OF THE ASSETS THAT WE CURRENTLY HAVE.

WE WILL MAKE ADDITIONAL INVESTMENTS IN RENEWABLES, IT'S JUST TIMING.

WE ARE FULLY COMMITTED AND OPEN TO DO THAT.

THIS IS WHY WE THINK WE HAVE TO KEEP THE COMMUNITY'S POWDER DRY BECAUSE MORE OPTIONS WILL BE COMING ALONG AND IT WILL BE THE RIGHT OPPORTUNITY AND WE WILL MAKE THOSE INVESTMENTS AT THOSE TIMES.

SO, I'M NOT GOING TO BELABOR THIS.

THIS WILL BE POSTED ON OUR WEBSITE AND ANYONE CAN LOOK AT IT.

AND THEN WHEN WE GO OUT INTO THE COMMUNITY WE'LL EXPLAIN IT MORE AND GO INTO IT.

TO RUN A MODEL, SO WE'RE ANGERING ANALYTICS FIRM.

TO GET TO THESE THINGS WE HAVE TO RUN MODELS.

SO BASICALLY WE SAID LET'S RUN A MODEL THAT DOES SOMETHING DIFFERENT.

DIFFERENT THAN WHAT WE NORMALLY HAVE DONE.

TO RUN THE FLEXIBLE PATH PLAN AS A MODEL, AND THERE WILL BE DIFFERENT VERSIONS OF THAT, BUT THIS IS THE KEY ONE WE'RE FOCUSED ON FOR STRATEGIC PURPOSES.

WE MADE SOME MAJOR THOUGHT ABOUT WHAT IF WE SHUT TWO DOWN EARLIER THAN WE WOULD HAVE NORMALLY DONE? THAT WILL KEEP US FROM MAKING CERTAIN INVESTMENTS IN THE FUTURE IN TERMS OF ENVIRONMENTAL CONTROL.

AND WE CAN USE THAT MONEY ON SOMETHING ELSE.

NOW, WE WON'T HAVE THE PRODUCTION SO WE WANTED TO RUN IT THROUGH THE MODEL TO FIGURE OUT WHAT WOULD THAT BE LIKE? WE ALSO SAID MAYBE WE DON'T EXTEND THE LIFE OF GAS PLANTS.

WE DID THAT.

WE SHORTENED IT.

THIS WAS A TECHNICAL SHORTENING, NOT A DECLARATION OR AN OVERCOMMITMENT.

IT WAS JUST AN ASSUMPTION TO SAY WHAT WOULD HAPPEN.

WE RAN ALL OF THESE THINGS.

WE PUT IN THERE WHAT IF WE HAD BATTERY STORAGE IN TERMS OF WHAT WE KNOW NOW? AND THEN WE SAID AUDIO] REAL ASPECT OF THAT IS WE RAN THAT MODEL AND SAID HOW DO WE EVALUATE IT? WE'LL EVALUATE EVERY OPTION IN TERMS OF BOTH THE QUALITATIVE THINGS AND THE BENEFITS THAT WE GET IN THE COMMUNITY AND WE'LL ALSO DO A QUANTITATIVE RELATIONSHIP.

GAS PRICES ARE CHEAP.

GAS IS LESS EMITTING.

SO WHAT WE'LL BE LOOKING FOR ARE SOLUTIONS THAT BEAT GAS, EITHER BECAUSE QUALITATIVELY THEY ARE BETTER.

QUANTITATIVELY BETTER OR BOTH.

BUT GAS IS THE GENERATION TYPE TO BEAT.

AND WE WANT PEOPLE WHO ARE DOING NEW ADVANCEMENTS IN RESEARCH AND TECHNOLOGY TO TRY TO MAKE IT AS ECONOMICAL AND AFFORDABLE AS POSSIBLE OVER THE LONG TERM.

WE WANT THEM TO SAY MAKE IT OPERATE AS GOOD AS A GAS PLAN.

IF IT HAS ZERO EMISSIONS AND THE SAME PRICE, WE'RE GOING TO GO TO THE RENEWABLE EVERY TIME.

IF IT'S GOT NO

>> IF IT'S GOT NO EMISSIONS AND SLIGHTLY MUCH MORE, WE'LL LOOK AT, HEY WE GOT BIGGER BENEFITS ON THE OTHER SIDE THAT ARE QUALITATIVE.

AT THE SAME TIME WE CAN'T ENCOURAGE PEOPLE TO PUT PRICES DOWN.

THAT'S WHAT WE WANT, FORDABILITY, RELIABILITY AND 24/7 OPERATION ARE ALL OF THE THINGS WE WANT IN THIS

[00:20:02]

COMMUNITY OVER TIME.

THIS IS PROBABLY THE FIRST CHART THAT CAUSED A LOT OF -- CONSTERNATION.

THIS IS NOT A DECLARATION.

THIS IS NOT A FINAL.

WE HAVE NO FLEXIBILITY TO DO ANYTHING ELSE.

BUT IT IT IS A VIEW.

IN THE FAR LEFT CORNER THAT'S WHAT IT LOOKS LIKE TODAY.

WE HAVE A LOT OF FOSSIL.

A LOT IN GAS.

THAT'S INTENTIONAL BECAUSE IT'S HALF THE EMISSIONS OF COAL.

THE QUESTION I GOT BACK.

PAULA, YOU'RE FORGETTING WHAT IT LOOKED LIKE TEN YEARS AGO.

S IT'S A DIFFERENT VIEW OF THAT.

YOU HAVE COAL, A GAS THAT'S DARK BLUE.

BACK THEN ABOUT TEN YEARS AGATHA WAS ALL COAL.

AND IT WON'T LOW EMITTING COAL EITHER.

WE ARE ON A JOURNEY, A PLAN, TO GET BETTER AND BETTER OVER TIME BUT THAT FIRST COLUMN IS HOW WE LOOK.

THE SECOND COLUMN IS, IF WE USE THE SAME STRATEGY, THAT WE'RE OWNER-RIGHTER.

WE CAN BUILD A FOSSIL PLANT, GAS PLANT.

THAT'S KIND OF THE MARGIN.

IF WE DID THAT, THAT'S WHAT IT WOULD SAY, INCREASE, INCREASE YOUR GAS GENERATION PRODUCTION.

WE SAID WHY DON'T WE TRY SOMETHING ELSE.

SO, THE LAST COLUMN IS A VIEW OF WHAT IF YOU JUST DIDN'T REPLACE THOSE GAS PLANT WAS MORE GAS.

WHAT IF YOU SAID, WE'LL TAKE A BED THAT INSTEAD OF REPLACING IT, THERE'S SOME ASPECT OF A PPA OR SOME OTHER OPPORTUNITY TO INSERT RENEWALS.

SO WE FINAL NECESSARILY GET TO WHERE WE HAVE MAYBE A SMALLER, 20 PERCENT FRACTION OF RENEWALS IN SOLAR, AND NOW WE SAY IT'S AT LEAST 50.

IT'S AT LEAST 50.

AND THIS IS CONCEPTUAL.

THAT'S IT.

IT CAN DEFINITELY LOOK BIGGER.

AND WE'LL LOOK AT NEW TECHNOLOGIES AND LOOK AT OUR OPPORTUNITY TO EXPAND THAT.

I THINK WHAT WE'VE SEEN, WE'VE SEEN SOCIAL MEDIA AND GOTTEN INPUT AND SEEN HEADLINES AND HEADLINES SAID YES, BUT, THERE IS STILL COAL AND YOU CAN PROBABLY SEE IT BETTER IN THE FUTURE.

AND -- BUT THE THING I WANT TO HIGHLIGHT.

WE HAVE TO DO AN ANALYSIS.

ANOTHER SECTION THAT TAKE IN MIND THAT YOU'RE GROWING.

JUST LOOK AT ABSOLUTE TERMS NOT JUST RELATIVE TERMS. WE'LL DO THAT, COME BACK AND INSERT THAT AND SAY THAT'S WHAT ABSOLUTE TERMS LOOK LIKE.

IF THERE'S MORE PEOPLE IN HERE, THAT WILL GO UP TECHNICALLY AND WE'LL PRESENT TO THE COMMUNITY WHAT THAT COMMENT WOULD BE BY IM IMPACT, SO THAT IS TRUE.

RELATIVE NECESSARILY, I WANT TO POINT OUT THE RATIO DECLINES.

QUITE FRANK NECESSARILY NUCLEAR IS NOT DECLINING.

THAT WHOLE FACILITY SERVED THIS COMMUNITY VERY WELL.

IT'S NON-EMITTING, IT'S WELL RUN, AND COST COMPETITIVE.

IT HELPS TREMENDOUS NECESSARILY WITH RELIABILITY AND YES, THAT IS IN A PLAN.

WHO KNOWS.

WE MIGHT NOT GET A LICENSE.

THINGS COULD CHANGE.

THAT IS CURRENTLY WHAT WE BELIEVE IS HAPPENING TODAY.

I WILL POINT OUT THE GRAY.

THE GRAY CAUSING INITIAL CONCERN.

THAT IS HOW WE SEE IT NOW.

REAL NECESSARILY, IF YOU LOOK AT WHERE THE GRAY STARTS AND WHERE THE GRAY ENDS.

IT'S ALMOST NEGLIGIBLE.

WE ARE NOT OVERBETTING.

THERE'S ONE PLANT EXISTING OUT THERE BY THAT TIME, IT'S THE NEWEST PLANT.

THE COMMUNITY IS PAID FOR IT.

IT'S COMMITTED TO IT.

AND IT'S PRODUCING VALUE.

WE WON'T LOCK IN AT THAT.

IF THERE'SRE A WAY OF CHANGING AND LOOKING IT DOWN.

WE STAY BREADDY TO DO THAT.

WHAT'S IMPORTANT IS LOOK AT OPPORTUNITY ON THE OTHER SIDE.

GROWTH AND RENEWABLES REAL NECESSARILY INCREASES.

AND WE BELIEVE THAT ASPIRATIONAL NECESSARILY AND REAL NECESSARILY EVEN MORE SO, WE THINK THAT'S A REAL PICTURE AND THINGS CAN JUST GET BETTER FROM THERE.

WHETHER OR NOT WE MAKE A COMMITMENT WE WANT TO BE 100 PERCENT.

THIS IS NOT DISCOUNTING A COMMITMENT TO BE 100 PERCENT, WE'RE AN ENGINEERING ANALYTICS FIRM AND WE'RE TRYING TO CREATE AN ACTUAL PATH TO MOVE FORWARD.

SO ALL OPTIONS STAY ON THE TABLE, ALL ASPIRATIONS STAY ON THE TABLE AND WE ARE THERE TO HELP THIS COMMUNITY APPLY THOSE SOLUTIONS GOING FORWARD.

SO, WHAT HAPPENS IS, WHAT WE DON'T KNOW, WHEN WE GROW FORWARD IS, I ALWAYS LIKE TO GIVE ANALOGY THAT WE USED TO HAVE TO INNOCENT LIGHT BULKS, SPEND A TON OF MONEY BUYING

[00:25:01]

LIGHT BULBS, HANDING THEM TO PEOPLE.

PEOPLE WANT A DIFFERENT LIGHT.

IT'S NOT BRIGHT.

IT'S TOO EXPENSIVE.

THAT'S WHAT THESE PROGRAMS DO, THEY ENCOURAGE US TO CHANGE BEHAVIORS AND WE DON'T HAVE TO SIN CENT, PEOPLE BUY LIGHT BULBS, IT'S NEW CHECK NOTHING AND PEOPLE ARE HAPPEN.

IN THE PATHWAY WE ARE NOT SURE WE THINK THINGS WILL HAPPEN.

WE THINK PRICES WILL COME DOWN.

IF THERE'S MORE DISTRIBUTED GENERATION ACROSS THE SYSTEM THAT SAYS WE DON'T NECESSARILY HAVE TO BUILD BIG PLANTS AND WE RECOGNIZE THAT.

WE'RE NOT SUNK OR LOCKED IN TO SAY WE'LL BE OPEN.

WHAT WE THINK WE'LL DO IS VALUE OUR DRIVERS.

WE'RE GOING TO MAKE SURE AS POWERS PRODUCE IT WILL MOVE BACK AND FORTH.

PEOPLE WILL PROBABLY EVEN BROKER WHAT'S KEY IS ELECTRIC VEHICLES WILL CHANGE THE WORLD, RIGHT? YOU DRIVE UP NOW AND YOU GO TO THE GAS STATION AND YOU PUMP GAS, THAT'S ALL GOOD.

THAT'S ALL WE'VE KNOWN FOR OUR ENTIRE LIVES.

WE'VE BEEN A NATION OF DRIVER WAS GASOLINE BUT ELECTRIC VEHICLES WILL CHANGE THE WORLD.

THE INTERESTING THING, YOUR CAR TODAY DOES NOT FILL ITSELF UP, RIGHT? BUT WITH ELECTRIC VEHICLES IT COULD CHARGE UP.

IT COULD PUT POWER BACK ON THE GRID ITSELF AND THERE WILL BE TIMES WHERE WE WANT TO BUY THAT POWER, SO IT'S GOING TO CHANGE EVERYTHING.

AND YOUR COMMUNITY, BECAUSE WE ARE TOTALLY ALIGNED TO THE CITY OF SAN ANTONIO, OUR OWNER, AND WE SERVE THE COMMUNITY, WE WANT TO SOLVE THAT PROBLEM AND THAT OPPORTUNITY TOGETHER, BECAUSE WE FEEL LIKE THAT'S THE RIGHT PLACE FOR US TO DO AND THE RIGHT PLACE FOR US TO MOVE FORWARD.

SO THAT'S -- RIGHT NOW, IT'S SLOW GROWTH IN EVS, BUT THEY PREDICT THAT AUSTRALIA AS A COUNTRY, FOR EXAMPLE, WILL BE IN EVS IN THE NEXT 20 TO 25 YEARS, AND UNITED STATES WILL BE SOMEWHERE IN THAT PACT AS WELL.

NOW YOU'RE STARTING TO SEE MANUFACTURERS START ABOUT FULL EV LINES, NOT EVEN GOING TO PRODUCE A GAS POWERED PLANT -- I MEAN, CAR.

YOU WILL HEAR THERE WILL BE NO MORE DIESEL.

THESE THINGS ARE COMING AND TECHNOLOGY IS ACTUALLY DRIVING THEM AND THE NEW OFFERING, GOING TO CHANGE HOW WE DO IT.

AGAIN, THIS IS AN OPPORTUNITY FOR US.

I DID WANT TO POINT OUT, COUNCIL MEMBERS HAVE THIS CHART IN FRONT OF THEM AND WE WILL POST THIS AS WELL, I JUST WANTED TO SAY, WE HAVE 146EV CHARGING STATIONS ACROSS THE CITY NOW AND THEY ARE AVAILABLE.

AND THAT'S OUR FOUNDATION AND WE HAVE MORE CHARGING STATIONS THAN WE HAVE CARS TO CHARGE AND THAT'S OKAY.

BECAUSE EVENTUALLY IT WILL FLIP AND WE WILL NEED TO HAVE MORE CHARGING STATIONS OUT BEFORE AND WE'RE GOING TO DO A STRATEGY ON THAT.

THE ONE THING I WILL HIGHLIGHT, WE DO HAVE AN ENTRANT INTO THE SYSTEM WHO IS NOT YET PARTNERED WITH US, AND THEY PUTTING -- CHARGING STATION, AND CHARGING A PREMIUM PRICE FOR THAT.

WE ARE SUPPORTIVE OF NEW BUSINESSES AND WE WANT TO MAKE SURE THAT THE COMMUNITY GETS THE SERVICES THAT THEY WANT, BUT WE'RE GOING TO NEED TO PARTNER WITH THEM AND MAKE SURE THAT THEY ARE DOING IT WITH THE PERMISSION OF THE CITY, IN TERMS OF, ARE WE GOING TO HAVE ANY PERMITTING REQUIREMENTS FOR EVS IN GENERAL.

WE NEED TO ALIGN TO THAT STRATEGY, PARTNER AND MAKE SURE CUSTOMERS ARE PAYING A PRICE FOR THAT ENERGY.

WE EXPECT TO BUILD THIS OUT AND WE WILL COME FORWARD AND TALK ABOUT POSSIBILITIES OF BUILDING OUT MORE IN TERMS OF EV POSSIBILITIES, AND WHAT NEW INVESTMENTS WE WANT TO MAKE AND WE WANT THE COUNCIL'S INPUT AND WE WILL ALSO TALK TO THE COMMUNITY ABOUT THAT AS WELL.

>> THIS IS JUST A CURRENT SLIDE OF THE 146 WHERE THEY ARE CURRENTLY.

AND THIS IS THE COMMENT ABOUT THE CURRENT UNAUTHORIZED PROVIDER.

I DO WANT TO HIGHLIGHT AGAIN, I MEAN, WE ARE TELLING A STORY ABOUT A VISION, AND A PATH, WITH LOTS OF POTENTIAL AND LOTS OF FLEXIBILITY, BUT WE'RE ALSO DOING REAL THING, I WANT TO HIGHLIGHT WE DID LAUNCH ANOTHER COMMUNITY COOLER PROJECT, WE DID AN RFP FOR UP TO FIVE MEGA WATTS.

WE GOT SUBMISSIONS, WE GOT GOOD RESPONSE TO OUR REQUEST FOR PROPOSAL, AND WE EXPECT TO ACTUALLY GO THROUGH THE PROCESS AND AWARD THAT AT NEW 5 MEGA WALTS BY THE BEGINNING OF THE SUMMER.

WE'RE EXCITED ABOUT THAT, BECAUSE MORE COMMUNITY SOLAR IS REAL NECESSARILY GOOD FOR OUR ABILITY TO REAL NECESSARILY MODE LATE AND KEEP DEMANDS FROM FOSSIL FUEL GENERATION DUNE.

AND WE WILL DO MORE AND MORE AND MORE OF THAT OVER TIME.

THIS IS OUR TIME FRAME THAT SAYS BY THE EARLY SUMMER, AND THAT IS MY HIGHLIGHT FOR WHAT I WANTED TO TALK TO YOU ABOUT TODAY.

IF YOU HAVE ANY QUESTION, I WILL ANSWER THOSE.

[00:30:02]

>> MAYOR NIRENBERG: GREAT, THANK YOU, PAULA FOR BRINGING THIS ONE TO COUNCIL QUICKLY, BECAUSE IT WAS JUST PRESENTED TO THE BOARD ON TUESDAY.

JUST TO SET THE CONTEXT FOR THE DISCUSSION, AND WE'LL GET IMMEDIATELY INTO COUNCIL COMMENTARY, TO EMPHASIZE THE SLIDE, WHERE IT SHOWED THE ENERGY MIX NOW, 2040 AND THEN 2040 FLEXIBLE, THE IDEA THERE IS THAT THIS IS BASED ON WHAT WE KNOW TODAY.

>> ABSOLUTELY.

>> MAYOR NIRENBERG: IF ALL CONDITIONS REMAIN THE SAME AND OUR ABILITY TO PRODUCE RENEWAL ENERGY AND THE RESOURCES WE'VE CURRENTLY ALLOCATED TOWARDS NEW TECHNOLOGY, IN INNOVATIVE SOLUTIONS LIKE STORAGE CAPACITY, THAT'S IMPORTANT FOR YOU ALL, AND YOU'VE DONE A GREAT JOB YOUR TEAM IN PROVIDING US THE FACTS, THE ENVIRONMENTAL CONDITION, NOT JUST NATURAL RESOURCES BUT THE ENVIRONMENT IN THE ECOSYSTEM OF U TILTED COSTS AND PRODUCTION VARIABLES TO UNDER THE WORLD AS WE KNOW IT AND THE TRACK THAT WE'RE HEADED TOWARDS.

IT'S A GOOD ONE.

BECAUSE AS WE ALL REMEMBER IT'S A MUCH DIFFERENT TRACK WE HAVE BEEN ON HOW SA2020 DID NOT TAKE PLACE AND A NEW DIRECTION FOR THE CITY TO BECOME CLEANER, MORE RENEWAL, MORE EFFICIENT, SO FORTH.

SO THE DISCUSSION AT THE BOARD ROOM FOR CPS IS NOT ENTIRELY DIFFERENT BUT MORE NUANCED, AND, HAS MORE GRAVITY IN THIS ROOM FOR THIS REASON.

CPS IS A MUNICIPAL-OWNED ENERGY UTILITY.

THAT MEANS THE PUBLIC ARE OUR STAKEHOLDERS NOT PRIVATE CORPORATION.

THAT PROVIDES US AN OPPORTUNITY AS A CITY TO TO BE LEADERS TO -- HOW WE DO BUSINESS AND EMPHASIZE WHERE WE WANT TO PLACE INVESTMENTS.

WHETHER TO BE A CLEANER CITY, A GREENER CITY, TO BE A HEALTHIER CITY AND AT WHAT COST WE WOULD DO THAT, AND BALANCED NEEDS OF OUR ENERGY UTILITY TO REMAIN AFFORDABLE TO ALL MEMBERS OF OUR COMMUNITY BECAUSE WE KNOW THAT'S AN EXTRAORDINARY ISSUE.

THAT'S THE BALANCING POINT THAT'S GOING TO BE DIFFICULT FOR US TO DETERMINE WITHOUT GOING INTO THE COMMUNITY, HAVING CONVERSATIONS LIKE THIS IN MANY DIFFERENT ROOMS AND MANY DIFFERENT CONSTITUENT SIS.

I WILL SAY FIRMLY THAT I AM GRATEFUL FOR THE WORK THAT YOU ALL HAVE DONE TO PROVIDE THE VERY IMPORTANT STABLE FORCE THAT CPS ENERGY HAS BEEN FOR OUR COMMUNITY AND TO BASICALLY KEEP, NOT JUST THE LIGHT ON, BUT THE PARKS CLEAN AND TRAIN CLEAN AND ALL OF THE OTHER THINGS THE CITY DEPENDS ON YOU FOR BECAUSE IT IS A PORTION FROM THE REVENUES WE DO EVERYTHING.

OPERATION AT THE CITY.

BUT I'M ALSO OF THE MIND WE NEED TO SET ASPIRATIONAL GOALS AS A COMMUNITY AND WHAT, WHERE, ON THE HORIZON WE SHOULD BE, IF WE DO BAKE IN OUR VALUES AS A COMMUNITY IN 2040.

IS IT NO COAL? IS IT 65 PERCENT RENEWAL?

>> UH-HUH.

>> MAYOR NIRENBERG: IS IT SOME MIX OF THE ABOVE.

I BELIEVE WE NEED TO PUSH THE ENVELOPE AND WE NEED TO DETERMINE HOW WE GET THERE.

THIS COUNTRY, I REMEMBER 20 YEARS AGO.

ONE OF THE BIGGEST POLITICAL ISSUES WAS HOW DO WE BECOME ENERGY INDEPENDENT.

WE COULD DEBATE IF WE'VE EVER GOT THERE.

BUT CLOSER THAN WE SHOULD HAVE BEEN.

WE NEVER WOULD HAVE GOTTEN THERE IN THE WORLD BACK THEN.

IT TOOK LEADERSHIP TO GET THERE.

THAT'S WHAT WE HAVE TO BE COGNIZANT OF.

UNDERSTAND HOW FAR CPS HAS COME AT THE DIRECTION AND COOPERATION FROM THE COMMUNITY, BUT ALSO WHERE WE WANT TO GO.

IS IT 2040 WHICH IS REMARKABLY BETTER THAN MOST PUBLICLY OR PRIVATELY MUNICIPAL, OR PRIVATELY OWNED UTILITIES MIGHT BE.

I THINK IT'S FATHER.

YOU ALSO HAVE TO DETERMINE WHERE THOSE INVESTMENTS NEED TO BE MADE AND AT WHAT COST.

I DON'T HAVE ANY QUESTIONS AT THIS POINT BUT I'LL TURN IT OVER TO MY COLLEAGUES STARTING WITH COUNCILWOMAN SANDOVAL.

>> SA

>> EXCUSE ME.

>> SANDOVAL: THANK YOU, MAYOR AND THANK YOU, PAULA FOR YOUR PRESENTATION.

I APOLOGIZE I WAS LATE.

I HAD TO CELEBRATE INTERNATIONAL

[00:35:02]

WOMEN'S DAY.

I DO WANT TO ECHO THE MAYOR'S COMMENTS BECAUSE WE HAVE A MUNICIPAL UTILITY, WE HAVE A WONDERFUL OPPORTUNITY TO DIRECT OUR ENERGY FUTURE.

WE HAVE MORE LEVERAGE THAN WE WOULD IF WE WERE A FOR-PROFIT -- OR, IF YOU WERE A FOR-PROFIT ENTITY AND YOU WEREN'T INVOLVED AND IT IS TRUE OUR STAKEHOLDERS ARE RESIDENTS.

THERE'S A RATE PAYERS, YOUR CUSTOMER BUT ALSO PEOPLE WHO OWN IT.

WE ARE YOUR EXTENDED BOARD I GUESS.

I APPRECIATE THE WORK YOU AND YOUR TEAM HAVE DONE THUS FAR.

I'VE BEEN VERY IMPRESSED WITH HOW OPEN YOU'VE BEEN TOLE SUGGESTIONS THAT WE'VE GIVEN YOU.

I HAVE PUSHED A LIT WHEN IT COMES TO RENEWAL.

LIKE WHY IS IT ONLY SUCH A SMALL PERCENTAGE AND WHAT KIND OF STORAGE DO WE NEED TO REACH THAT TARGET THAT WE WANT.

SO, THANK YOU VERY MUCH TO CHRIS, AND FOR ALSO BEGINNING TO CONSIDER THE ENVIRONMENTAL IMPACTS ASSOCIATED WITH THE PURCHASING THAT YOU DO.

WE KNOW POLLUTION DOESN'T ONLY EXIST AT THE POWER PLANT OR AT THE POINT OF COMBUSTION BUT ALL OF THE WAY UP THE SUPPLY CHAIN AS WELL.

WE TALKED ABOUT HOW COAL IS MINED.

IT TRAVELS ON OPEN TRAINS, OR MANY PEOPLE ALONG THE WAY ARE AFFECTED AND THEIR HEALTH IS IMPACTED AS WELL.

I DO HAVE ONE QUICK QUESTION.

IN TERMS OF THE 2040 TRADITIONAL OR FLEXIBLE PLAN, IF THERE IS COAL AT THAT POINT IN TIME, CAN YOU REMIND ME WHICH IS THE PLANT THAT WILL BE OPERATING?

>> SPRUCE 2.

>> AND IS SPRUCE 2 RATING WITH SCR RIGHT NOW?

>> UH-HUH.

>> SANDOVAL: SPRUCE 1 WOULD BE THE ONE YOU WOULD REMOVE IN 2030?

>> YES, YES.

ZR

>> SANDOVAL: THAT IS REAL NECESSARILY THE ONLY QUESTION I HAVE.

THANK YOU VERY MUCH.

PAULA.

>> MAYBE I WOULD COMMENT, THE COUNCILWOMAN WAS NICE ENOUGH TO MEET WITH CHRIS AND MYSELF AND WE DO CHECK-INS AGAIN AND WE TALK TO EVERYONE BUT WE HAD A GOOD CONVERSATION ABOUT PRINCIPLES AND I SAY THAT, BECAUSE WE REAL NECESSARILY HAVEN'T TALKED A LOT ABOUT IT BUT WE HAVE RECENTLY CREATED PRINCIPLES ABOUT WHAT WE WANT FOR PURCHASING AND FLASHING THROUGH THE POTENTIAL VENDORS.

WE WANT TO UNDERSTAND WHAT THEY'RE DOING IN TERMS OF SUSTAINABILITY THROUGH THE ENTIRE VALUE CHAIN OF WHAT THEY'RE DELIVERING US.

I AGAIN REMEMBER WHEN I ENTERED THE INDUSTRY, ABOUT TEN YEARS AGO THERE WERE CARBON PRINCIPLES AND THEY WERE OUT THERE FOR ALL INVESTORS TO LOOK AT.

THEY ARE NOT RIGID.

THEY ARE ASPIRATIONAL AND APPROPRIATE BUT THE REAL THING TO GET SUPPLY OTHERS TO TALK TO US ABOUT WHAT ARE THEY DOING, WHAT ARE THEIR COMMITMENTS, WHAT ARE THEIR INVESTMENTS AND START THE DIALOGUE AND ULTIMATELY, I THINK WE CAN START THINKING ABOUT HOW DOES IT REAL NECESSARILY INFLUENCE THE FINAL DECISION BUT WE ARE REAL NECESSARILY TRYING TO PUT OUT THERE SO WHEN YOU COME TO SAN ANTONIO, YOU DEAL WITH US.

THAT PART OF WHAT YOU'RE DOING IS IMPORTANT AND WE'RE GOING TO START MONITORING ALL OF THAT AND BUILDING IT INTO THE THINGS THAT WE'RE DOING ON THE CLIMATE ACTION PLAN AND JUST THE WAY WE WANT TO OPERATE.

WE WANT TO CHANGE OUR DNA TO BE THOUGHTFUL IN GETTING OTHERS TO BE THOUGHTFUL.

THANK YOU, YOU ACTUALLY GAVE US THAT THOUGHT AND IDEA WHEN WE WERE MEETING WITH YOU.

SO WE HAVE A PRELIMINARY PRINCIPLE STATEMENT OUT THERE AND IT WILL EVOLVE OVER TIME AND WE'LL SHARE IT WITH EVERYONE.

>> SANDOVAL: I'M ADDING ONE MORE COMMENT.

I'M JUMPING UP AND DOWN INSIDE OF ME.

I TOLD CHRIS THAT THE OTHER DAY.

I'M SO EXCITED ABOUT THAT.

I WANTED TO LET EVERYONE KNOW THAT, ABOUT THE EVENT ON MARCH 19TH.

>> YES.

>> SANDOVAL: YOU CAN GO AHEAD AND TELL THE DEPALES BUT THE REAL NECESSARILY EXCITING THING IS, WE AREN'T WAITING FOR THE CLIMATE ACTION PLAN TO BE DONE BEFORE WE BEGIN IMPLEMENTING REDUCTIONS IN GREENHOUSE GASES, SO THIS IS AN EXAMPLE, THIS SNIFFER TEST THAT WE'RE GOING TO DO IN A COUPLE OF WEEKS IS AN EXAMPLE OF A GREENHOUSE GAS MITIGATION MEASURE.

I KNOW THAT SOUNDS LIKE A MOUTHFUL, BUT OF SOMETHING THAT REDUCES POLLUTION WHILE SAVING US MONEY AND PROTECTING OUR HEALTH ALL AT THE SAME TIME.

SO, TO ANY NAYSAYERS OUT THERE ABOUT THE CLIMATE ACTION PLAN, THOSE ARE THE TYPES OF SOLUTIONS WE'RE LOOKING FOR.

INCREASES IN QUALITY OF LIFE, SAVING US MONEY.

REDUCES POLLUTION AND PROTECTING OUR HEALTH.

SO PLEASE TELL US ABOUT THAT.

>> VERY GOOD.

SO WE'RE A DUAL ENERGY PROVIDER, WE'RE PRODUCING ELECTRC AND PRODUCING GAS.

WE HAVE A GAS DECISION WITH HUGE INVESTMENTS AND WE'VE DONE STUDIES ABOUT TECHNOLOGY THAT'S OUT THERE.

WE TYPICALLY HAVE AN ABILITY TO

[00:40:02]

DEFECT IF THERE'S ANY TYPE OF PROBLEMS IN THE INFRASTRUCTURE, A CUSTOMER MAY CALL IF THEY SMELL SOMETHING.

THERE'S NEW TECHNOLOGY YOU HAVE A MOBILE UNIT THAT DRIVES THROUGH THE COMMUNITY TO LOOK FOR THINGS WELL BEFORE OUR NOSES WOULD TELL US SOMETHING.

IN REALITY, ANYTHING THAT WOULD ACTUALLY BE A BREACH, LIKE A CRACK IN THE GAS SYSTEM IS MORE TOXIC THAN AIR EMISSIONS ISSUES.

WE THINK THIS IS ONE OF THE BEST EFFORTS IN TERMS OF ENVIRONMENT WE CAN MAKE.

WE BOUGHT WHAT WE CALL THE SMART SNIFFER.

IT'S A PARALLEL.

WE'RE GOING TO MAKE IT LOOK LIKE A DOG.

AND WE WANT TO DO EDUCATION WITH KIDS AND WE WANT TO TALK TO THEM ABOUT WHAT IT MEANS TO THINK ABOUT THE ENVIRONMENT IN TERMS OF PRACTICAL SOLUTIONS.

IT'S POWERED BY PICARO, THE DEVELOPER OF IT.

THAT'S THE BEGINNING OF TRYING TO FIND THESE PRACTICAL SOLUTIONS THAT LOOK FOR WAYS THAT MAKE OUR COMMUNITY CLEANER, BETTER, MORE EFFECTIVE AND AGAIN, COUNCILWOMAN

>> SANDOVAL: HAS AGREED TO HELP US DO THE PROMOTION WITH THAT AND GET IT LAUNCHED AND FIGURE OUT WHERE ADDITIONAL INVESTMENT OPPORTUNITIES IN THE CLIMATE ACT LEAD

>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN SANDOVAL.

COUNCILMAN COURAGE.

>> COURAGE: THANK YOU, YOU MENTIONED DIALOGUE AND DIALOGUE BEING IMPORTANT.

AND I WOULD LIKE TO ASK, IS THE BOARD AGENDA FOR THE BOARD OF TRUSTEES PUBLISHED UNDER SOME GUIDELINES OR SCHEDULE SO THE GENERAL PUBLIC KNOWS WHAT THAT IS?

>> YES.

WE HAVE MEETINGS EVERY MONTH.

THERE'S A REQUIREMENT EVERY MONTH, WE USE IT THE LAST MONDAY OF THE MONTH AND WE POST ACTIVITY FOR THE NEXT MONTH.

WE POST IT THE WEEK BEFORE AND SO WE ACTUALLY MOST IT THROUGH THE CITY'S METHOD HERE SO IT PUBLICLY CAN BE ATTAINED.

>> COURAGE: HOW ABOUT THE RECENT MEETING YOU HAD.

WAS THAT POSTED?

>> ANY TIME WE HAVE A QUORUM WHICH IS MORE THAN TWO BOARD MEMBERS.

COMMITTEE MEETINGS ARE ■JUST COMMITTEE MEETINGS AND THEY DON'T TAKE ANY BOARD ACTION IN THOSE MEETINGS.

ANY TIME YOU HAVE THREE OR FOUR BOARD MEMBERS.

THAT AGENDA IS POSTED PUBLICLY.

>> COURAGE: DO YOU HAVE CITIZENS TO BE HEARD AT THOSE MEETINGS.

>> WE DO NOT HAVE CITIZENS TO BE HEARD.

WE GO OUT AND DO OUR OWN OUTREACH.

OUR BOARD MEMBERS MAKE THEMSELVES AVAILABLE.

THEY RESPOND TO INQUERIES AS WELL.

WE DO NOT HAVE A SECTION FOR THAT.

>> COURAGE: YOU DO HAVE A CITIZENS ADVISORY BOARD?

>> WE HAVE A CITIZENS ADVISORY COMMIT "Y"

>> COURAGE: DID THEY HAVE A PLAN TO SEE THIS YET?

>> WE HAVE NOT SHOWN THEM THOSE SPECIFIC PLANS BUT HAVE SHOWN THEM ALL OF THE COMPONENTS OF THOSE PLANS.

>> COURAGE: ON A DIFFERENTI ITE, I UNDERSTAND THE CITY OF GEORGETOWN AND OTHER CITY HAVE GONE ALL RENEWAL.

HOW COME THEY CAN DO THAT BUT WE CAN'T?

>> GREAT, GREAT QUESTION.

IT PARLEYS TO THE COMMENT, THAT'S A DECLARATION OF COMMITMENT AND IT'S BACKED UP BY POWER AGREEMENTS IN THE BACKGROUND THAT BASICALLY ALLOCATE RENEWAL POWER FULLY TO COVER ALL OF THE DEMAND AND LOAD WHICH IS A VIABLE WAY TO DO IT.

IN REALITY, POWER IS MOVING INDISCRIMINATE NECESSARILY ALL ACROSS THE GRID ALL OF THE TIME.

AS I SAID, ELECTRONS LOVE EVERYONE.

IN REALITY ALL OF THE POWER GOES IN THERE AND THEY COULD GET, PROBABLY CERTAIN TIMES LIKE WHEN THERE'S STORMS AND FREEZING AND NO SUN AND NO WIND, THEY ARE GETTING POWER FROM OTHER UNITS BUT THE GRID IS PROVIDING THAT BECAUSE THEY HAVE A CONTRIBUTION TO SUPPORT THE RENEWAL PIECE THEIR ALLOCATION IS 100 PERCENT COVERED.

>> COURAGE: DO THEY NOT GENERATE POWER THEMSELVES?

>> NO.

>> COURAGE: IT MAKES IT EASY TO BE ALL RENEWAL IF YOU DON'T GENERATE ANYTHING.

OKAY.

THANK YOU.

I HAD A QUESTION, ON THE LAST PAGE OF THE PRESENTATION, YOU SAY RFP.

WHAT IS THE PURPOSE OF THE RFP?

>> YOU TALKING ABOUT THIS --

>> COURAGE: YEAH, YOUR LAST PAGE.

TENTATIVE RFP DOC.

WHAT IS THE PURPOSE OF THAT.

>> IN OUR PROCESS WHEN WE WANT PEOPLE TO BID ON OUR ACTIVITY, WE WANT A SUPPLIER TO COME IN AND BUILD THE COMMUNITY SOLAR SYSTEM, WE DID A OUT REACH AND POSTED OUT THERE.

WE POSTED I WANT TO DO THIS SERVICE OR THIS SERVICE.

WE ASK PEOPLE TO REGISTER AS MUCH AS MUCH AS POSSIBLE AND WE

[00:45:01]

ALWAYS ENCOURAGE THAT.

SO, IF SOMEBODY REGISTERS AND SAYS, MY BUSINESS IS A RENEWABLE BUSINESS, WE USE THAT LIST, TOO, TO SAY HERE'S SOME NEW BUSINESS THAT YOU MIGHT WANT TO BID ON BUT THE PROCESS HELPS US REAL NECESSARILY KIND OF BUT A DEFINITIVE -- WE PUT OUT A SCOPE LIKE WE WANT.

THESE ARE SPECIFIC THINGS WE WANT, MEET OR BEAT IT.

THEN WE ARE ABLE TO COMPARE ALL OF THOSE THINGS TOGETHER AND ALLOWS US TO USE AN OBJECTIVE SCORING RATIO

>> COURAGE: I UNDERSTOOD THAT CONCEPT.

WHAT ARE THEY SPECIFICALLY PUTTING AN RFP FOR?

>> TO ACTUALLY HAVE THE RIGHT TO CREATE COMMUNITY SOLAR STYSTEMS.

>> COURAGE: THAT WAS MY QUESTION.

I WANT TO THANK CPS TO COME TO THE NEIGHBORHOODS AND ADDRESS OUTAGE PROBLEMS WE'VE BEEN HAVING IN DEERFIELD AND MY DISTRICT.

I ALSO KNOW YOU'RE COMING TO NORTH CENTRAL THOUSAND OAKS AT THE END OF THE MONTH TO KIND OF RESOLVE THOSE AND I KNOW MY CONSTITUENTS AND I ARE PERSONALLY VERY PLEASED TO SEE THAT.

THE INWOOD REMEDIATION PROJECT COMPLETED WHICH WOULD IMPROVE RELIABILITY BUT THERE ARE OTHER PROPERTIES THAT NEEDED TREE MAINTENANCE AND MOST OF THEM HAVE NOT BEEN COMPLETED.

IS THAT STILL PART OF --

>> WE HAVE A PLAN OVERALL.

I DON'T HAVE IT WITH ME.

WE'LL GIVE YOU AN UPDATE AND MORE SPECIFIC DATES ON THAT.

>> COURAGE: TWO OTHER QUESTIONS, WILL CPS PARTICIPATE IN FUTURE INSULATION OF 5G TRANSMITTERS CURRENTLY UNDER WAY IN AUSTIN?

>> WE DON'T HAVE A PROGRAM OUT THERE FROM THAT PERSPECTIVE.

NO, WE DO NOT YET.

>> COURAGE: HAVE YOU LOOKED AT THE POSSIBILITY OR BENEFIT OF THOSE TRANSMITTERS?

>> WE ARE ACTUALLY LOOKING AT OUR ENTIRE SYSTEM IN TERMS OF FIRE -- FIBER AND CONNECTIVITY, COMMUNICATION, AUGMENTATION TO OUR SMART CITY OUTREACH.

WE ARE LOOKING THAT WE DON'T HAVE AN ACTUAL PROJECT FOR THAT OUT THERE NOW.

>> COURAGE: ONE OTHER QUESTION ABOUT DEERFIELD, DEERFIELD HAS UTILITIES UNDERGROUND.

>> UH-HUH.

>> COURAGE: WILL POLES BE REQUIRED AND WHERE WILL THEY GENERALLY BE INSTALLED AND ANY CONSTRUCTION OF PROBLEMS IN THAT AREA AND WHY CAN'T WE GO MORE TO JUST UNDERGROUND INSTALLATION, WHY CAN'T WE GET THEM OUT OF THE AIR AND UNDER GROUND? WE'RE DOING CABLE?

>> WELL, A COUPLE OF THINGS.

SO, I DON'T BELIEVE WE ARE REAL NECESSARILY LOOKING TO TAKE ANY INFRASTRUCTURE FROM UNDERGROUND ABOVE.

IT HAS TO BE SOME UNUSUAL SITUATION AND WE WOULD TALK TO THE AREA AND THAT WOULDN'T BE OUR APPROACH AND NO ONE'S TALKING ABOUT THAT.

BUT WE'LL UPDATE YOU.

>> COURAGE: SO IF IT'S UNDERGROUND IT WILL STAY UNDERGROUND.

>> YEAH.

SO, A COUPLE THINGS AND WE'VE HEARD THIS.

WE ARE ACTUALLY STARTING UP A COMMUNICATION WITH THE DEVELOPMENT COMMUNITY WE WERE LOOKING AT IT SOLE NECESSARILY FROM OUR STANDPOINT.

WHEN YOU PUT IN UNDERGROUND, WHEN YOU RETROFIT UNDERGROUND.

THINK TESTIFY THIS WAY.

IF WE WANT TO GO FROM AERIAL TO UNDERGROUND, WE'RE GOING HAVE TO RIP UP A TON OF STREETS AND REAL NECESSARILY CHANGE THE TRAFFIC AND PATTERNS.

IT'S VERY DISRUPTIVE AND VERY DIFFICULT QUALITATIVE NECESSARILY.

QUANTITATIVE NECESSARILY IT'S REAL NECESSARILY EXPENSIVE.

WE DIDN'T PLAN OR PUT IN THE INFRASTRUCTURE COST TO THE COMMUNITY A FULLY UNDERGROUNDED SYSTEM.

WE DO EVERYTHING WE CANNOT TO COME FORWARD TO REQUEST MONEY.

WE NEED TO PUT EVERYTHING UNDER GROUND, THAT BILL WOULD BE TREMENDOUS NECESSARILY HIGH.

A MILLION DOLLARS A MILE.

WE COVER -- THIS IS NOT LINEAR BUT WE COVER 1500 MILES, RIGHT? WE CAN COME BACK AND GIVE YOU SOME MORE CALCULATIONS BUT WE HAVEN'T DONE IT.

FOR MANY REASONS BECAUSE OF THE AFFORDABILITY.

THE OTHER ISSUE IS, THERE'S A LOT -- WHEN YOU PUT IT UNDERGROUND IT SEEMS GREAT AND YOU PUT IT UNDERGROUND IT GOES BAD.

IT'S REAL NECESSARILY HARD TO FIX.

THE REPAIR IS DIFFICULT.

WE TRIED OTHER TECHNIQUES WHERE YOU HAVE DIRECT BURY, AND SOME FINDERS LIKE THAT WE ARE PUTTING IN THE LINE LIKE NO CONDUIT OR SIMPLICITY CONDUIT.

FOR OUR INFRASTRUCTURE, WE NEED BROAD CONDUIT TO PULL THE LINE, DO THE REPAIR AND PUT THE LINE BACK IN THERE.

BUT WE TRIED IN SOME PLACES A COUPLE DECADES TO DO WHAT WE CALL DIRECT BURY.

WHEN WE DID THAT, YOU DON'T THINK ABOUT IT.

BUT THE GROUND IS ALWAYS SHIFTING BECAUSE WE HAVE EXTREMES IN HEAT.

NOW WE HAVE EXTREMES IN COLD.

THAT ACTUALLY MAKES THE INFRASTRUCTURE MORE FRAGILE, WHILE IT MAKES IT MORE BEAUTIFUL.

IT ACTUALLY INCREASES THE COST, MAINTENANCE AND THOSE ACTIVITIES.

THAT SAID, I WOULD SAY WE'RE STILL OPEN TO TRY TO DO DI DIRE

[00:50:03]

BURY IN THE MOST STRATEGIC PLACES POSSIBLE.

SOMETIMES BASED UPON THE AREA AND WHERE THEY ARE AT, IF IT'S DEEMED TO BE THE PLACE WE NEED TO INFEST MORE EFFORT, WE WILL GO BACK IN AND EITHER RETROFIT OR BUILD OUT THE UNDERGROUND.

WE STILL HAVE OPTIONS, AND ACTUALLY THE LAST PIECES, WE HAVE TO WORK WITH THE DEVELOPERS BECAUSE THEIR COMMENT IS, WHEN WE HAVE TO GO IN AND DO ALL OF THAT INFIELD PRODUCTION, AND IT'S NOT IN OUR RATES IT MAKES THE PROJECT MORE EXPENSIVE FOR THEM AND THAT'S A BIG DEAL ON THEIR ECONOMICS.

BUT WE HAVE STARTED THAT CONVERSATION TO FIGURE OUT HOW CAN WE COME UP WITH A BALANCE.

AND WE KNOW IT'S A HOT TOPIC WE CAN KEEP TALKING ABOUT IT.

WHAT WE NEED TO DO TO GET BETTER, WE'LL DO THAT, WE'LL COME BACK.

>> COURAGE: THANK YOU.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN COURAGE.

MISS SCULLEY WANTS TO ADD SOMETHING.

>> SOME HAVE DEVELOPMENTS TO INCORPORATE UNDERGROUND UTILITIES AS A COST OF DEVELOPMENT, AND SOME CITY HAVE HAD THOSE POLICIES IN PLACE FOR NOW 30 YEARS OR MORE.

SO THINK ABOUT THE GROWTH IN SAN ANTONIO, AND IF ALL OF THAT NEW DEVELOPMENT IN THE PAST 30 YEARS HAD BEEN UNDERGROUNDED, AND SO, IT'S SOMETHING PERHAPS ARE TO THE COUNCIL TO CONSIDER AS WE TALK ABOUT ANY AMENDMENTS TO THE UNIFIED DEVELOPMENT CODE THAT WILL BE COMING UP FOR CONSIDERATION, PAULA AND I HAVE HAD CONSIDERATION CONVERSATION ABOUT THE UNDERGROUNDING BECAUSE OF POWER OUTAGES THAT WE'VE HAD IN THE COMMUNITY WITH STORMS AND CERTAIN AREAS OF THE CITY BEING AFFECTED, MORE SO THAN OTHER AREA, SO I THINK IT'S A WORTHY CONVERSATION FOR THE COUNCIL TO CONSIDER.

>> MAYOR NIRENBERG: AGREED.

THANK YOU, SHERYL.

COUNCILMAN PELAEZ.

>> PELAEZ: I THINK IT'S IMPORTANT, YOU AND I TALKED ABOUT IT EARLIER, WHEN YOU LOOK TO LEADERS TO MAKE THOSE IMPORTANT DECISIONS THEY ARE EXPECTING THOSE LEADERS TO UNDERSTAND AND COMMUNICATE WHERE WE'VE BEEN, WHERE WE ARE, AND WHERE WE'RE GOING AND YOU'VE DONE AN EXCELLENT JOB TODAY OF SHOWING US WHERE WE'RE GOING.

AND I HAD ASKED YOU EARLIER, WE NEED TO SPEND SOME TIME ON MAKING SURE EVERYBODY UNDERSTANDS THE DIFFERENCE BETWEEN WHAT KRCHS IS TODAY, VERSUS WHAT CPS WAS 20, 30, 40 YEARS AGO, RIGHT, BECAUSE THE ADVANCES YOU'VE MADE, I MEAN ALL OF YOUR PREDECESSORS, TOO, ARE NOT TO BE TAKEN LIGHTLY, RIGHT? AND WE ON CITY COUNCIL HAVE BEEN GETTING NON-STOP BARRAGE OF THE SAME E-MAIL OVER AND OVER AND OVER AGAIN, WITH DIFFERENT SIGNATURES BUT IT'S THE SAME E-MAIL.

LET ME READ YOU SOMETHING THAT THIS E-MAIL CONTAINS.

YOU TELL ME IF YOU START TO DISAGREE WHAT IT SAID AND YOU STOP ME.

CPS ENERGY SHOWED REAL LEADERSHIP ON CLEAN ENERGY OVER THE YEARS.

IT WAS AN EARLY ADOPTER OF WHEN ENERGY HAS MADE SIGNIFICANT INVESTMENTS IN EFFICIENCY THROUGH ITS STEP PROGRAM.

IT'S SET THROUGH A GOAL AND SO FAR WE'RE ON THE SAME PAGE.

ALL RIGHT? BUT, THIS NEW PLAN, YOUR ENERGY PLAN, MISSES AN OPPORTUNITY TO CONTINUE THE HISTORY OF LEADERSHIP.

OKAY.

WHY?

>> BECAUSE WE HAVE NOT LOCKED ANYTHING OUT.

AND WE ARE GOING TO CONTINUE TO BE INNOVATIVE AND THERE'S NO DECLARATION TO DO ANYTHING OTHER THAN KEEP IMPROVING.

>> RIGHT.

SO, YOU'RE NOT GOING TO MISS AN OPPORTUNITY.

THAT'S WHY IT'S FLEXIBLE.

THAT'S THE POINT I -- BY THE WAY, THIS WAS NOT CHOREOGRAPHED.

I'M READING ALL THIS MORNING AS WELL.

AND IT'S FLEXIBILITY THAT I WANT TO POINT OUT.

IT'S FLEXIBILITY THAT GOT US FROM THESE HUGE DOUBLE DIGIT PERCENTAGES OF HOW MUCH COAL WE WERE USING IN THIS, YOU KNOW, ENERGY MIX, TOS BEING ON THE VERY, VERY CUSP OF SINGLE DIGITS.

I THINK THE OTHER PART OF LEADERSHIP IS ALSO EXPLAINING TO FOLKS THAT WE CAN'T LET THE PERFECT BE THE ENEMY OF THE GOOD, AND, BOY, WE GOT A LOT OF GOOD AND WE'RE ALL STRIVING FOR PERFECT AND WE'RE TRYING TO GET THERE, BUT NOT RECOGNIZING HOW GOOD WE ARE TODAY, IS A LOST OPPORTUNITY, SO, I WILL REMIND FOLKS THAT AS MUCH AS I WOULD LIKE FOR US TO BE FOSSIL FUEL FREE AND TO HAVE THAT AS A GOAL AND I DO HAVE THAT AS A GOAL, RIGHT, THE REALITY IS THAT SIGN

[00:55:04]

THAT SOMEBODY'S HOLDING UP BACK THERE THINK GLOBAL NECESSARILY IN COAL IS WRAPPED IN PLASTICALLY IS A FOSSIL FUEL PRODUCT.

YOU DIDN'T HAVE AN ALTERNATIVE MATERIAL TO WRAP IT IN TO KEEP IT DRY BECAUSE AN ALTERNATIVE MATERIAL DOESN'T EXIST.

ALL OF THESE FOLKS SHOWED UP TODAY BECAUSE THEY SENT EACH OTHER E-MAILS MADE OF PLASTIC WHICH ARE FOSSIL FILE PROJECTS ENERGIZED BY A UTILITY THAT USES A LITTLE BIT OF COAL.

IT'S REAL NECESSARILY IMPOSSIBLE TO DIVORCE OURSELVES FROM THE REALITY OF THE UNIVERSE IN WHICH WE LIVE AND CERTAINLY THESE GOALS ARE LAUDABLE.

I DO WANT TO POINT OUT, I THINK IT'S ALSO REAL NECESSARILY IMPORTANT THAT WE UNDERSTAND THAT WE AREN'T IN THIS TINY VACUUM.

AND AGAIN, I WISH SAN ANTONIO WAS EASY TO WRAP MY ARMS AROUND SO WE CAN HAVE LABORATORY CONDITIONS AND KNOW WHATEVER WE PUT IN, WE'RE GOING TO GET OUT AND ANTICIPATE.

I DON'T WANT TO SEE FLEXIBLE.

I WANT TO KNOW WHAT I'M BUYING TODAY AND WHAT I'M GOING TO GET TOMORROW.

I KEEP THINKING -- I ALWAYS TALK ABOUT MY KIDS.

I KEEP THINKING OF MY KIDS AND LAW OF THERMODYNAMICS.

IN THIS INSTANCE, I THINK ABOUT MY SON'S ROOM.

HE'S 11 YEARS OLD AND HIS ROOM LOOKS LIKE A DISASTER.

LEFT TO ITS OWN DEVICE, EVERYTHING THAT GETS MORE USE, EVERYTHING THAT GROWS, EVERYTHING THAT CHANGES, BECOMES LESS ORDERED, AND MY KIDS' ROOM IS LESS ORDERED.

SO IS SAN ANTONIO, WE ARE GETTING MORE AND MORE COMPLEX.

WE HAVE LARGE ENERGY CONSUMERS TELLING US MAYBE WE DON'T NEED TO BUY ENERGY, RIGHT? WE HAVE PEOPLE DETACHING FROM HOMES.

WE HAVE A COMPANY MAKING DENSE BATTERIES THAT MAY REQUIRE US TO CHANGE THE WAY WE FUNDAMENTALLY DO BUSINESS.

THAT'S THERMODYNAMICS, THINGS CHANGE, SO, TO REVERSE THE TENDENCY, OF CHAOS IN THE FACE OF CHANGE, REQUIRES A LOT OF WORK.

AND IT REQUIRES A LOT OF ENERGY, AND REQUIRES REAL NECESSARILY SMART PEOPLE AND REQUIRES THE TRUST OF STAKEHOLDERS TO LET YOU DO THAT WORK AND CONTINUE MOVING IN THE RIGHT DIRECTION, SO, THANK YOU FOR DOING ALL OF THAT HARD WORK AND FOR LIFTING, AND THANKS TO ALL OF THOSE PEOPLE WHO SHOWED UP.

AND THANK YOU FOR BRINGING THE SIGN.

YOU KNOW, AND HOLDING US ACCOUNTABLE, AND THANK YOU FOR BEING REASONABLE, AND WORKING WITH US FOLKS.

THAT'S IT, MAYOR.

>> I WOULD SAY, WE ARE -- TO SOME DEGREE IT IS GREAT IT GETS PEOPLE INTERESTED.

IT'S GREAT INPUT TO KNOW WHAT PEOPLE ARE PASSIONATE ABOUT.

WE ARE LISTENING, AND AS WE CAN SOLVE THOSE SOLUTIONS IN THE FUTURE, WE ARE MOTIVATED BECAUSE WE HAVE CUSTOMERS WHO, LIKE YOU SAID, HOLDING US ACCOUNTABLE.

>> PELAEZ: THE DAY YOU GET MY KIDS TO CLEAN HIS ROOM, THE DAY YOU SOLVE ALL OF THEM.

>> I CAN'T GET MY 20-YEAR-OLD TO CLEAN HIS ROOM.

I'LL BE HELPFUL.

>> MAYOR NIRENBERG: COUNCILWOMAN WE HAVE GRVIAGRAN.

>> VIAGRAN: THANK YOU, I AM WONDERING, THESE CHARGING STATION, HOW DO YOU DECIDE WHERE TO PUT THEM OR IS IT PRIVATE AND THEY REACH OUT TO YOU?

>> WE LOOK TO GET DISPERSION RIGHT AND LOOK AT SCHOOLS.

WE DIDN'T HAVE A REAL PLAN.

WE JUST KIND OF BLITZED IT BACK AND FORTH WHERE WE DID THAT.

NOW, I THINK IS A GOOD TIME FOR US TO HAVE A MUCH MORE ROBUST, YOU KNOW, FOR THE USE OF A PLAN TO FIGURE OUT WHAT SHOULD WE DO AND WHERE SHOULD WE GO, SO WE'RE GOING TO COME BACK AND PUT OPTIONS IN FRONT OF YOU.

>> VIAGRAN: THANK YOU VERY MUCH.

HOW MANY EMPLOYEES DOES CPS ENERGY HAVE?

>> 3,100 PLUS.

>> VIAGRAN: I WANT TO GIVE YOU AND THE TEAM KUDOCUE DOE ESPECI CPS ENERGY WORKERS WHO GOT BACK FROM PUERTO RICO AND CONNECTING OUR COMMUNITY.

AN EXAMPLE HOW SAN ANTONIO IS WORKING WITH THE COMMUNITY GLOBAL NECESSARILY WHEREVER WE COULD HELP.

THANK YOU YOU AND TO THE TEAM MEMBERS.

I THINK -- YEAH, LISA'S HUSBAND, RIGHT?

>> WE'RE VERY PROUD OF THEM.

>> VIAGRAN: THANK YOU.

>> ABSOLUTELY.

>> MAYOR NIRENBERG: THANK YOU COUNCILWOMAN VIAGRAN.

COUNCILWOMAN GONZALES.

>> GONZALES: THANK YOU, MAYOR, AND THANK YOU FOR THE PRESENTATION.

I HAVE A FEW QUESTIONS, AND -- REGARDING THE PRESENTATION, AND WE DID HAVE MEMBERS OF THE COMMUNITY SEND US QUESTIONS, AND SO I WAS READING THROUGH THEM, AND SEEING IF I HAD QUESTIONS AT THE SAM TIME AND I DO HAVE ONE

[01:00:01]

QUESTION THAT WAS SENT TO ME.

HOW MUCH OF THE PROJECTED PEAK DEMAND IS ACTUALLY NOT SAN ANTONIO'S DEMAND BUT THAT OF OTHER CITY ON THE STATE GRID.

WHY SHOULD SAN ANTONIO KEEP POLLUTING COAL-FIRED ENERGY PLANS TO SELL TO OTHER COMMUNITIES AT PEAK USAGE.

SO, IS THAT TRUE?

>> WELL, WE ARE NOT -- WE DO NOT TARGET PEAK TO COVERAGE ABILITY TO GO OUT AND GO TO THE OPEN MARKET JUST TO SELL THE EXCESS POWER.

SO, THAT IS NOT OUR GOAL OR OBJECTIVE.

WE DON'T DO THAT.

WHAT WE DO, THOUGH, IS I WOULD SAY ANYWHERE FROM ABOUT 12 -- ABOUT 12, MAKE AT PEAK, 15 PERCENT OF OUR TOTAL EXCESS -- OF OUR TOTAL SALES ACTUALLY GOES OUT TO THE MARKET.

ABOUT THAT MUCH.

THAT'S AT VARIOUS TIMES IT KIND OF GOES UP AND DOWN.

SO, WE DO THAT BECAUSE WE HAVE A LOT MORE GENERATION THAN WE NEED.

BUT WE MEET EVERY SINGLE PEAK HOUR, DEMAND.

THAT'S OUR PRIMARY FOCUS.

WE DO HAVE CUSTOMERS THAT WE'VE HAD ALMOST AS LONG AS WE'VE BEEN OWNED BY THE CITY, SMALL COMMUNITIES LIKE FORESTVILLE, CASTROVILLE, HONDO, THEY'VE BEEN WITH US FOR THE LONG HALL, TO COVER THEM, WE INCLUDE THEM IN THE PEAK BUT THEY ALSO HAVE PAID, IN MANY WAYS, FOR GENERATION.

THEY'VE BEEN WITH US LONG ENOUGH TO HAVE MADE THOSE INVESTMENTS.

THAT'S OUR REAL MANAGEMENT IN OUR OBJECTIVE BUT IT IS NOT IN TERMS OF WHOLESALE SALES.

I WILL SAY THIS, WHOLESALE SALES ARE GOOD BECAUSE THOSE NET MARGINS COME BACK AND REDUCE THE COST REQUIREMENTS FOR THE AVERAGE CITIZEN.

SO, WE ACTUALLY MAKE MONEY ON OUR ABILITY TO TAKE THAT WHOLESALE SALE.

IT'S NOT A GIVE.

THEY PAY A GOOD PRICE FOR WHAT THEY DO ECONOMICALLY AND THAT HELPS US ACTUALLY KEEP COSTS DOWN AND HELPS US LOWER THE BILLS.

SO THERE'S GOODNESS AND WE WOULD BE GLAD TO COME OUT AND GO THROUGH MORE DETAIL BUT IT IS NOT A GAME OF US OPTIMIZING OUR MEGA WALTS TO GO OUT AND SELL THEM IN THE WHOLESALE MARKET.

WE ARE FOCUSED ON THE COMMITMENTS HERE.

WE HAVE ADDED, SMALLER ONES AGAIN.

THESE ARE LONG-TERM CUSTOMERS OR SMALL CONTRACTS.

THE LITTLE BIT WE SELL ON TOP OF THAT.

ACTUALLY BRINGS BACK MONEY AND HELPS TO LOWER COSTS.

AND THIS IS EXISTING -- EXISTING INFRASTRUCTURE, THIS IS HOW WE MAKE THEM MORE EFFICIENT.

WE WILL NOT MAKE AN INVESTMENT TO BUY IT SOLE NECESSARILY FOR THE PURPOSE OF DOING WHOLESALE SALES.

WE DO NOT DO THAT.

WHEN WE BOUT REAL WE GOT IT TO SLOT AND GET RID OF DAILEY.

THAT'S FOR OUR INVESTMENT.

WE TUT PUT IT IN THE MERCK ET UNTIL WE CLOSE DEELY.

>> GONZALES: ANOTHER QUESTION I HAVE REGARDING -- BUILDING ON THE QUESTION REGARDING UNDERGROUND UTILITIES.

I KNOW WE HAVE REAL NECESSARILY LARGE BOND PROJECTS COMING, IN DISTRICTS 3 AND 5, ROOSEVELT IS $13 MILLION FOR A COMPLETE STREET PROJECT AND THERE'S A TXDOT MATCH IN THERE SOMEWHERE MAYBE TO THE TUNE OF AROUND 8 MILLION.

SO, WOULD THAT JUSTIFY BARING THE LINES? I THOUGHT THAT WAS PART OF THE PROJECT THAT WE WOULD REDO CPS AND S.A.W.S. -- NOT CPS BUT WE WOULD REDO THOSE? IS THERE AN OPPORTUNITY TO REDO THOSE WHEN WE DO LARGE STREET BOND PROJECTS?

>> YOU WANT TO TRY FIRST ARE, AND THEN I'LL --

>> SO, THE PROJECTS REPAIR WHAT IS UNDER GROUND WHEN WE DO THE BOND PROJECT, BUT IT DOESN'T INCORPORATE A BUDGET TO UNDERGROUND UTILITIES THAT ARE OVERHEAD ON THE WIRES.

SO, WHATEVER IS UNDER GROUND, WE'VE BEEN WORKING TOGETHER NOW FOR THE PAST TWO BOND PROGRAMS SO THAT ALL OF THE WORK UNDERGROUND, WHETHER S.A.W.S., CPS AND PRIVATE UTILITIES IS DONE WHEN WE EXCAVATE FOR A ROAD PROJECT BUT IT DOESN'T INCORPORATE A BUDGET TO UNDERGROUND THE UTILITIES IF THEY ARE OVERHEAD ON WIRES.

ON COALS, I'M SORRY.

>> I WOULD SURE LIKE TO SEE THAT.

PERHAPS FOR FUTURE BOND PROJECT, WHEN WE ARE DOING THAT, I KNOW IT WASN'T VOTED ON BY THE -- IN THE BOND, BUT IT WOULD MAKE SENSE TO DO THAT, AND I KNOW, IF IT'S A REQUIREMENT FOR NEW COMMUNITIES, THAT IT COULD ALSO

[01:05:01]

BE A REQUIREMENT FOR INFILL, EVEN IF WE'RE DOING THE SAME PROJECTS.

I KNOW I HAD A PROJECT A COUPLE YEARS BACK IN THE SAN JUAN HOMES.

IT WAS A 30,000 PLUS PROJECT.

IT'S ALMOST A COST OF A NEW NEIGHBORHOOD.

WHY COULDN'T BE DO UNDERGROUND UTILITIES AT THE SAME TIME IF THE INVESTMENT IS SIGNIFICANT ENOUGH.

I HOPE WE CAN DO THAT.

I RECOGNIZE THESE ITEMS ARE ALREADY BUDGETED.

HOW CAN WE -- WOULD IT HAVE TO BE DONE ON A CASE BY CASE BASIS, FOR EXAMPLE IF IN THE NEXT BOND PROGRAM HOPEFUL NECESSARILY THERE'S LARGENES AND STREET PROJECTS THAT ARE MANY MULTIMILLIONS.

WE HAD ONE THAT WAS A 2012 BOND PROGRAM IN THE NEIGHBORHOOD OF 16 MILLION.

HOW CAN WE INCLUDE THAT, SHERYL? IS THAT PART OF LANGUAGE THAT HAS TO BE INCLUDED IN THE BOND?

>> IT'S LANGUAGE BUT IT'S ALSO IN THE BUDGET.

SO JUST AS BEGAN EXAMPLE, WE UNDERGROUNDED UTILITIES AT BROADWAY HILDEBRAND WHEN WE DID JUST AT THAT INTERSECTION, IT WAS QUITE A MAZE OF WEISS AT THAT INTERSECTION.

THE DECISION WAS MADE COLLECTIVE NECESSARILY WITH THE COUNCIL TO UNDERGROUND UTILITIES AT THAT INTERSECTION WITH THE DRAINAGE PROJECT.

IT ADDED MORE THAN $2 MILLION TO THE COST.

SO, IT BECOMES A COST FACTOR.

AND IT'S A POLICY ISSUE.

IF THE COUNCIL WANTED THAT CONSIDERED IT MAY MEAN FEWER PROJECTS, BECAUSE THOSE THAT ARE DONE, THEY COST MORE TO UNDERGROUND THE UTILITIES.

>> HOPEFUL NECESSARILY THAT CAN BE DISCUSSED AT A LATER DATE NEXT TIME WHEN WE HAVE BIG BOND PROJECTS.

I WAS SO PROUD OF THE WORK THAT WAS DONE WITH CPS IN PUERTO RICO.

IT'S NO DIFFERENT FROM WHAT WE DID IN HOUSTON WHEN THEY HAD THE BIG HURRICANE THERE'S THAT WE SENT OUT A TEAM BUT I WAS REAL NECESSARILY CURIOUS ABOUT WHO PAID FOR THAT.

WHAT WAS THE FINANCE ARRANGEMENT TO SEND FOLKS OVER THERE?

>> SO, FEMA IS STILL -- THEY ARE WORKING AND DOING THE FUNDING IN TERMS OF RESTORATION NOW.

AND IT'S COVERING THE MAJORITY OF THE WORK.

IT DOES NOT COVER CHRIS' EFFORT, HE'S ON A TECHNICAL ADVISORY COMMITTEE.

NOW, MOST OF THE STUFF THEY DO IS TELECONFERENCING AND MEETINGS AND THINGS LIKE THAT, BUT WE DID HOST, THE DAY OF MARTIN LUTHER KING'S WALK, BIRTHDAY, NATIONAL HOLIDAY WE HOSTED IT PEOPLE COMING IN.

WE CALLED IT A DAY ON.

THAT EXECUTIVE TECHNICAL COMMITTEE IS DOING THINGS AND WE DO THAT AS PART OF OUR THOUGHT LEADERSHIP PERSPECTIVE.

IT'S NOT A HIGH EXPENSIVE THING.

HE MADE ONE TRIP DOWN TO PUERTO RICO.

VERY MUCH GOT A LOT OF THINGS DONE, INCLUDING TALKING TO THE GOVERNOR DOWN THERE.

MANY OF THE HEADS OF THE DIFFERENT DEPARTMENTS, AND ASPECTS OF THEIR GOVERNMENT, AND SO WE DID THAT IN LIKE A 24-HOUR FLIP AROUND.

WE'RE BEING VERY, VERY CONSCIOUS OF THE THINGS THAT WE DO, AND WE REPURPOSE SOME THOUGHT LEADERSHIP WORK.

ULTIMATELY, THE THINGS -- THERE'S MANY THING, WHAT'S GOOD FOR PUERTO RICO WILL REVEAL THAT ECONOMY.

BUT IF WE THINK ABOUT US DOING SOME NEW APPLIED SOLUTIONS, AGAIN, WE CAN DO SOME NEW THINGS DOWN THERE THAT MIGHT NOT HAVE BEEN DONE ANYWHERE IN THE NATION, THEN WE COULD BRING THAT THOUGHT LEADERSHIP AND THOSE TYPES OF SOLUTIONS INTO OUR FLEXIBLE PATH PLAN TO SAY WE SAW IT, DID IT DOWN THERE, TESTED IT, IT WORKS.

WE CAN BRING THOSE THINGS HERE SO THAT ACTUALLY REAL NECESSARILY AGAIN ALIGNS TO WHERE WE'RE AT BUT THE AVERAGE WORKER THAT GOES DOWN THERE IS CURRENTLY BEING FUNDED BY FEMA.

THEY HAVE A LIMIT, THOUGH, FOR HOW LONG THEY ARE GOING TO GO OUT.

IT'S GOING TO ATHE WHOLE PROJECT AND THEY'RE TRYING TO GET MORE EXTENSION OF TIME WITH FEMA AND WE'LL KEEP YOU UPDATED IT IF THE FUNDING CHANGES.

>> GONZALES: THANK YOU FOR THE PILOT PROGRAM IN DISTRICT 5 FOR SOLAR LIGHTING IN THE ALLEYS AND ROOF TOPS.

THAT CONTINUES TO BE ONE OF THE NUMBER ONE CONCERNS IS LIGHTING IN THE NEIGHBORHOODS.

THAT WAS VERY WELL RECEIVED.

AND I KNOW WE HAD AT LEAST 30 PEOPLE SIGN UP THAT DAY, AND LOOKING FORWARD TO HOW MANY ADDITIONAL LIGHTS THAT WE CAN DO.

SO, I'M ALWAYS IMPRESSED WITH CPS' ABILITY TO GO FROM DOING INCREDIBLY INNOVATIVE THINGS LIKE THE STUFF YOU'RE DOING IN PUERTO RICO AND THE THINGS THAT YOU'RE THINKING ABOUT FOR THE FUTURE BUT CAN BRING IT RIGHT BACK HOME TO OUR NEIGHBORHOODS WHERE WE KNOW WE NEED INCREASED LIGHTING IN OUR ALLEYS.

THANK YOU VERY MUCH, PAULA.

>> THANK YOU FOR YOUR PASSION AROUND THE LIGHTING PROJECT.

WE'VE DONE SOME REAL NECESSARILY CREATIVE THINGS WITH LIGHTING IN YOUR AREA THAT WE'RE INTERESTED

[01:10:01]

IN ACTUALLY EXPANDING BUT THAT ONE WAS INSPIRED BY A DISCUSSION ABOUT HOW CAN WE CREATE SOMETHING THAT WOULD HELP INSECURITY, HELP IN GENERAL LIGHTING AND IT'S A SELF GENERATING SOURCE.

SO WE'RE -- IT HAD ITS OWN LITTLE SOLAR PANEL ON IT, WHICH IS THE BEST THING AND DOESN'T DRIVE UP A CUSTOMER'S COST.

SO WE THINK AGAIN SOME OF THE SOLUTIONS THAT ARE ABOUT DISTRIBUTED GENERATION, THAT REAL NECESSARILY ARE COMING TO YOUR POINT THROUGH THIS PRACTICAL DESIRE, AND THEY ARE HAVING A LOT OF MULTIPLE BENEFITS AND WE ARE EXCITED TO PILOT WITH YOU ON THAT.

>> MAYOR NIRENBERG: GREAT.

THANK YOU, COUNCILWOMAN GONZALES.

COUNCILMAN SALDANA.

>> SALDANA: I'LL BE QUICK.

I WANT TO JUMP OFF WHERE SHIRLEY LEFT OFF.

TALKING ABOUT LIGHTING.

YOUR STAFF HAS BEEN VERY RESPONSIVE.

WE WERE TALKING ABOUT SOME NEIGHBORHOODS IN THE COMMUNITY AND I THINK WE'VE BEEN WORKING TO ACCOMPLISH THAT WITHIN A REASONABLE TIME FRAME WITH THE RESIDENCES OUT THERE.

JUST ON THIS SUBJECT, I WANT TO EMPHASIZE MY OWN POSITION AND POSITION I THINK I'M HEARING AMONGST THE COUNCIL MEMBERS AROUND THE IDEA THAT WHAT GETS MEASURED GETS DONE AND I THINK WHAT WE'VE BEEN MEASURING ARE SOME AMBITIOUS GOALS FOR OUR COMMUNITY AND PUBLIC UTILITY AROUND RENEWABLE ENERGY.

THE WAY THAT I CONSIDER SUCCESS HAPPENING IS BEING ABLE TO VET THAT WITH THE COMMUNITY OF INTERESTED STAKEHOLDERS WHO AGREES THAT OUR GOALS ARE AMBITIOUS ENOUGH AND I'VE SEEN IT HAPPEN WITH OUR CITY'S RECYCLING GOAL THAT WE WANT TO TRY TO GET TO BY 2025, IF WE DON'T PUT IT AT THE PERCENTAGE WE DID.

I DON'T THINK WE'D BE MOVING AS QUICKLY AS WE COULD ON THINGS THAT TAKE INVESTMENTS LIKE WORKING WITH YOUR COMMUNITY TO DO THINGS LIKE BRUSH COLLECTION AND MODERNIZING OUR EQUIPMENT TO GET TO THAT 60 PERCENT OR 65 PERCENT RECYCLING GOAL.

THE SAME THING HAPPENS WITH ANIMAL CARE SERVICES AND AMOUNT OF ANIMALS WE WANT TO LEAVE OUR SHELTERS ALIVE.

I BELIEVE WHAT GETS MEASURED, GETS DONE.

THANK YOU FOR AT LEAST PUTTING UP AND DISPLAYING TO THE PUBLIC THE IDEA THAT THIS IS WHERE WE WANT TO GO.

WE'RE NOT HIDING IT.

BUT WE'RE ALSO NOT FIXATED AND POURING CONCRETE, AND IT'S NOT WITHOUT SOME ADJUSTMENT THAT'S POP.

SO, I THINK -- THAT'S WHERE WE ARE AS WELL.

I AGREE WITH THE MAYOR THE KIND OF GOALS WE WANT TO SET FOR OUR COMMUNITY, THINGS ABOVE AND BEYOND WHAT WE MIGHT EXPECT FOR 2018.

WE BELIEVE 2028 IS A DIFFERENT PLATFORM AND WE NEED TO BE NIMBLE ENOUGH TO MOVE TOWARDS THAT.

I HEARD COUNCILMAN COURAGE ASK A QUESTION.

I THINK YOU ANSWERED IT PROPER NECESSARILY.

I WANT TO MAKE SURE IT MAKES SENSE.

IT REMINDED ME OF A STORY WHERE THEY WERE SPOTLIGHTING TEXAS AS A STATE THAT HAS A LOT OF RENEWAL ENERGY.

THE STATE OF TEXAS HAS THREE TIMES THE AMOUNT OF WIND ENERGY AS -- OR, THREE TIMES THE AMOUNT OF WIND ENERGY AS THE NEXT THREE STATES COMBINED IN SOME CASES OR MORE WIND ENERGY THAN THE NEXT THREE STATES COMBINED, I THINK IS THE RIGHT STATISTIC ON THAT.

WE ARE LOOKING AT CITIES ACROSS TEXAS AND THEY LAND ON GEORGETOWN AND INTERVIEW THE GEORGETOWN MAYOR AND SAY HOW DID YOU GET TO 100 PERCENT RENEWAL FOR YOUR CITY AND THE CITY IS $50,000.

HIS RESPONSE WAS IT'S BECAUSE OF OUR LOVE FOR GREEN AND IN THIS CASE, WE LOVE GREEN RECTANGLES.

GREEN RECTANGLES BEING DOLLARS.

IT WAS AN ECONOMIC DECISION WE MADE AT THAT TIME.

WE HAVE TO BALANCE THE QUESTION OF GREEN RECTANGLES AND GREEN ENERGY AND ASPIRATIONAL GOALS.

I BELIEVE THAT SAN ANTONIO IS HEAD AND SHOULDERS BEYOND WHERE I THINK A LOT OF COMMUNITIES OF OUR SIZE --

>> WHAT IS IT ABOUT GEORGETOWN? WAS THAT THE EXAMPLE WHEN YOU ANSWERED COUNCILMAN COURAGE?

>> THEY CAN GO OUT, AND GIVE ME A STRUCTURE THAT SUPPORTS ME.

WHETHER OR NOT THEIR ELECTRONS ARE REAL NECESSARILY COMING FROM A SPECIFIC LOCATION, THAT IS NOT LIKE -- THAT'S NOT A ROOF TOP SOLAR PROGRAM.

THAT'S A, I WANT A PRODUCT KIND OF AN RFP EFFORT.

I WANT TO HAVE THAT POWER FULLY COVER OUR LOAD, WHICH IS GOOD.

WHAT WE NEED ON THE OTHER SIDE, ARE CUSTOMERS THAT WANT TO BE ABLE TO SAY, GET THE STRUCTURE AND THAT'S ASPIRATIONAL, BUT IT IS NOT TECHNICALLY APPLIED.

TO THE MAYOR'S POINT EARLIER, ASPIRATIONAL NECESSARILY, WE BELIEVE 100 PERCENT MAKES A TON OF SENSE, SO THAT'S AN ASPIRATIONAL GOAL, ALL YOU HAVE TO DO IS STRUCTURE IT IN A FINANCIAL DEAL, YOU COULD DO.

WE ARE ACTUALLY TRYING TO MAKE THE ELECTRONS FLOW HERE, AND SO WE'RE COMING UP WITH A PLAN TO MAKE THEM FLOW HERE IN A PHYSICAL WAY, NOT JUST IN A TRANSACTIONAL WAY.

AND SO, GEORGETOWN HAS KIND OF

[01:15:03]

DONE A TRANSACTIONAL DEAL TO COVER THEIR LOAD.

>> SALDANA: THANK YOU FOR THAT EXPLANATION.

IT HELPS ME UNDERSTAND WHERE WE ARE COMPARED TO OTHER COMMUNITIES AND CITIES.

YOU'VE BEEN AT CPS FOR SEVERAL YEARS NOW.

>> YES.

>> SALDANA: YOU'VE BEEN IN CONVERSATIONS WHERE YOU TRIED TO PREDICT THE FUTURE, FUTURE AROUND ENERGY AND INVESTMENTS IN COAL OR GAS.

I RECALL THERE WAS A PREDICTION BEING MADE BY YOUR PREDECESSOR ABOUT WHY WE WERE GOING TO SHUT DOWN -- WHY WE WERE GOING TO SHUT DOWN DEALY.

THE IDEA IS REGULATIONS ARE SUCH THAT IT WOULD COST MORE TO KEEP THIS THING ON THAN IT'S WORTH TO KEEP IT GOING.

WE'RE GOING TO MAKE A DECISION IN 20 -- WHAT WAS IT, '12.

>> YEAH.

>> SALDANA: WE'LL MAKE A DECISION IN 2012 BECAUSE WE THINK THE WORLD WILL BE DIFFERENT.

HOW DO YOU FEEL ABOUT THAT IN HINDSIGHT? DID IT GO AS PREDICTED? IF SO, MAYBE IT DIDN'T GO AS PREDICTED BUT YOU THINK THIS IS A BET WORTH OUR INVESTMENT.

A BET THAT'S ON RENEWAL ENERGY THAT WE BELIEVE?

>> YES.

THAT'S A GREAT QUESTION.

A COUPLE OF THINGS.

SO, AT THE TIME, WE WERE ANALYZING SO MUCH REGULATION, WE USED TO CALL -- WHEN WE PLOTTED ALL OF THE REGULATION OUT, AND WHAT THE REQUIREMENTS WERE, WE USED TO CALL IT A TRAIN WRECK SLIDE.

IT MADE YOUR HEAD HURT HOW MANY THINGS WE WERE GOING TO HAVE TO DO AND EVERYBODY IN THE NATION WAS GOING TO HAVE TO DO IT.

IT WAS ALL ASPIRATIONAL.

THIS IS THE ONE THING THAT WHEN WE SAY WE'RE GOING TO RUN A ECONOMICS MODEL IT WON'T ALL BE ECONOMICS MODEL.

WHEN WE RAN THE MODEL TO PUT AN INVESTMENT ON THE DEALY UNIT TO MAKE IT GO LONGER OR BUY A MORE YOUTHFUL LOWER EMITTING PLANT, YOUR ECONOMIC MODEL WOULD NOT ACTUALLY TELL YOU TO GET RID OF THE DEALY UNITS IT WILL ACTUALLY SAY WE'LL MAKE THE INVESTMENT.

BECAUSE YOU COULDN'T QUANTITY HOW BIG THOSE PENALTIES THOSE COSTS ON THE ENVIRONMENTAL SIDE WERE.

THERE WERE ALSO AT THE TIME A LOT OF CONVERSATIONS ABOUT A CARBON TAX AND NOBODY COULD FIGURE OUT WHAT TO DO AND HOW TO DO THE TAX.

NOW, AT THE TIME, THERE WAS A TREMENDOUS CONVERSATION AND EVEN THE PREDECESSOR BEFORE THAT, COUPLE BEFORE THAT, MILTON LEE, WAS UP AT THE CAPITAL OF THE UNITED STATES TESTIFYING ABOUT, YOU KNOW, THE IMPLY CAMS OF A CARBON TAX AND SAYING EITHER WAY, AS USUAL, CPS ENERGY WILL MANEUVER THROUGH THAT, IF THAT'S THE COMPLEXITY, BUT THERE WAS JUST A HEAVY, HEAVY, YOU KNOW, KIND OF ISSUE ABOUT THINKING ABOUT HOW HARD THAT COULD BE TO MANAGE THROUGH THOSE WATERS, AND WE WERE ACTUALLY CIRITICIZED BY SOME WHEN WE SAID YOU CAN'T QUITE MEASURE IT BUT WE FEEL IT'S THERE.

IT'S NOT COMING THROUGH OUR MODELS.

WE THINK IT'S THE RIGHT THING TO DO AND SO WE'RE GOING TO GET OUT.

A LOT OF FOLKS SAID, WE GOT 20 MORE YEARS.

THE ECONOMIC MODEL SAID IT BUT THE PRICE OF THE REGULATION AND HEAVINESS SAID NO.

IN REALITY, IN HINDSIGHT, THAT HAS NOT PLAYED OUT.

NOT TO SAY THINGS WON'T CHANGE UNDER ADMINISTRATION BUT THAT HAS NOT PLAYED OUT.

WHAT IS INTERESTING, WHAT PLAYED OUT THAT WE DID NOT SEE, WAS THE ABUNDANCE OF GAS AS A RESOURCE.

SO, WE DIDN'T SEE THAT, RIGHT? WE DIDN'T SEE IT AT ALL.

WE THOUGHT IT WAS GOING TO BE SOMETHING ELSE.

BUT IN FACT, GAS PRICES COMING DOWN BECAUSE THERE'S SO MUCH GAS HAS CHANGED THE ENTIRE LANDSCAPE OF EVERYTHING, AND IT HAS REINFORCED THAT THAT DEALY DECISION WAS MADE FOR THE RIGHT REASONS.

BUT NOT THE REASONS THAT WE THOUGHT.

SO WE'RE -- TO YOUR POINT WE'RE SUPER EX-FIGHTED ABOUT THAT AND WE FEEL IT WAS GREAT AND WE DON'T REGRET OUR PLAN AT ALL.

WE WILL BE SHUTTING DEALY DOWN.

BUT THAT'S AN EXAMPLE OF WHAT THE ISSUE IS HERE.

THAT WE CAN ONLY SEE THE THINGS RIGHT IN FRONT OF US, AND WE RUN ALL OF THESE SCENARIOS, BUT WE ACTUALLY TRY TO PREPARE OURSELVES TO MAKE THE RIGHT DECISIONS IN THIS MOMENT AND TRY TO SCOPE IT OUT, BUT WE WILL MAKE DIFFERENT LEFTS AND RIGHTS AND PIVOT AND ALL OF THOSE THINGS TO GET TO THE ULTIMATE RIGHT DECISION, AND EVERY TIME WE LEARN SOMETHING NEW, IT INFORMS US AND MAKES US REINFORCE, OKAY, WHAT IS THE BEST DECISION AFTER THAT.

SO IT'S INTERESTING.

IT WASN'T WHAT WE THOUGHT WAS GOING TO DRIVE IT, BUT SOMETHING THAT WAS EVEN MORE COMPELLING FOR THE ENTIRE INDUSTRY WHICH WAS GAS ABUNDANCE.

>> SALDANA: I THINK THE POINT OF THE EXERCISE, WE GET TO MONDAY MORNING QUARTERBACK THIS AND SAY THESE ARE THE THINGS THAT WE COULD HAVE DONE IF WE KNEW THE CRYSTAL BALL WAS GOING TO TELL US THE FUTURE BUT IT TELLS A REAL NECESSARILY INTERESTING STORY WHICH IS THAT THERE ARE

[01:20:01]

REAL IMPLICATIONS WHEN THE FEDERAL GOVERNMENT WANTS TO MAKE REAL NECESSARILY TANGIBLE AND IMPORTANT DECISIONS LIKE THE CARBON TAX BECAUSE THEN YOU HAVE NOT JUST CPS BUT EVERY OTHER POWER UTILITY COMPANY THINKING TO THEMSELVES, WELT L WELL, LET'S -- THES ECONOMICS DRIVE US TO RENEWAL.

IF WE'RE NOT DOING IT FOR ALL TRUEISTIC REASONS, THE FEDERAL GOVERNMENT MAKES A DECISION WE NEED TO HEDGE THAT.

IT BREAKS MY HEART THAT'S NOT THE SAME POSITION THIS ADMINISTRATION IS TAKING BUT IT HAS TANGIBLE EFFECTS I HOPE FOLKS ARE LOOKING PAST YEARS AND DOING THE RIGHT THING FOR THE EARTH.

IF IT'S NOT DRIVEN BY ECONOMICS IT MIGHT BE DRIVEN BY SOMETHING A LITTLE MORE EXTERIOR IN NATURE IN TERMS OF THE PRESSURE THAT MIGHT EXIST ON RESOURCES.

SO, THANK YOU FOR THAT.

THANK YOU TO THE COMMUNITY MEMBERS THAT ARE HERE.

WHAT I LOVE ABOUT THE HISTORY OF PRESSURE, AND SOMETIMES IT'S, YOU KNOW, ANGER OR FRUSTRATION, IS THAT YOU CAN DO SOMETHING WITH THAT, YOU IT TURN THAT INTO PRODUCTION.

WHAT YOU CAN'T USE IS INDIFFERENCE.

THIS COMMUNITY HAS NEVER BEEN INDIFFERENT ABOUT THE ISSUE ABOUT GETTING TOWARDS RENEWAL ENERGY.

SOMETIMES WE'RE NOT WHERE WE WANT TO BE, EVEN IF IT'S ANGER WE CAN USE THAT AND MAKE THAT PRODUCTIVE AND SO I APPRECIATE YOU COMING IN AND WALKING US THROUGH THESE SOMETIMES COMPLEX ISSUES.

THANK YOU, PAULA.

>> MAYOR NIRENBERG: THANK YOU COUNCILMAN SALDANA.

PAULA, THAT'S IT FOR COUNCIL QUESTION.

THANK YOU FOR THE PRESENTATION.

WE LOOK FORWARD TO HEARING BACK LOU THE PUBLIC MEETINGS GO AND SEE THIS PLAN FURTHER TAKE SHAPE.

>> ABSOLUTELY.

THANK YOU SO MUCH FOR YOUR TIME.

>> MAYOR NIRENBERG: WE'RE ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.