[00:00:04]
THERE ARE NO MINUTES FOR THIS, FOR THIS MEETING, SIR.
WE HAD SENT, UH, SOME NOTES ON THE LAST,
[1. Briefing on the CPS Energy Rate Advisory Committee [Ben Gorzell Jr., Chief Financial Officer; Troy Elliott, Deputy Chief Financial Officer]:]
FIRST OF ALL, WE HAVE, UH, A BRIEFING ON C P S ENERGY RATE ADVISORY COMMITTEE.I'VE INVITED THE CHAIR OF THAT COMMITTEE TO COME OUT AND SPEAK WITH US TODAY AND SHARE HIS PERSPECTIVE ON HOW THAT PROCESS IS GOING.
I DO WANNA CLARIFY THAT THIS COMMITTEE DOES NOT HAVE ANY AUTHORITY OVER TRYING TO SAY WHAT A RATE SHOULD BE OR SHOULDN'T BE.
UH, THAT'S A FULL COUNCIL DECISION AT THE TIME IT'S PRESENTED TO US, BUT I THINK IT IS INCUMBENT UPON US TO UNDERSTAND HOW THAT RATE PROCESS IS MOVING FORWARD, HOW IT'S DEVELOPING, UH, SO THAT WE'RE BETTER INFORMED AS A COUNCIL WHEN IT COMES TO COUNCIL.
SO AT THIS TIME, I'D LIKE TO INVITE REED WILLIAMS TO STEP UP AND, UH, THANK YOU, UH, FORMER COUNCIL MEMBER WILLIAMS FOR BEING HERE WITH US TODAY, AND WE APPRECIATE YOUR INSIGHT INTO HOW THAT'S GOING WITH THAT COMMITTEE.
IF YOU NEED TO GO TO A PARTICULAR SLIDE, JUST, I DON'T HAVE ANY SLIDES.
ANYWAY, SO ANYWAY, I, WELL, FIRST OF ALL, I WANT TO THANK, UH, THE MAYOR AND THE MEMBERS OF THIS COMMITTEE, UH, FOR CONTINUING SOMETHING THAT I WAS AFRAID.
IN THE OLD DAYS, WE'D SAY IT GETS PUT ON A SHELF, BUT NOW IT GETS PUT IN A DRIVE SOMEWHERE OUT IN THE CLOUD.
AND FRANKLY, UH, IT'S VERY IMPORTANT TO US.
UH, WELL, THE FACT THAT, UM, COUNCILMAN COURAGE IS DOING THIS.
WE'VE GOT TWO VERY
AND, UH, TO CONTINUE THAT AND TO FOLLOW THROUGH IS, IS, IT'S, IT'S HUGE FOR ME.
AND I WANT TO TELL YOU, I APPRECIATE IT.
UH, AS FAR AS THE RACK, UH, IT'S A QUITE A DIFFERENT ANIMAL THAN THE WINTER STORM.
UH, IN FACT, IT'S AN ANIMAL THAT I DON'T KNOW IT'S EVER BEEN ONE BEFORE.
AND, UH, SO WE'VE HAD A, WE'VE HAD A LOT OF, OF, UM, STARTS, STOPS, RESTARTS.
UH, WE NEVER REALLY LOST ANY GROUND, BUT WE SURE, WE SURE MADE SOME, SOME DODGES.
UH, WE HAD TO START VERY QUICKLY ON THE EDUCATION.
THAT'S, IT'S A QUITE DETAILED PROCESS, RATE MAKING AND UNDERSTANDING RATES.
UH, WE HAD A VERY GOOD HELP FROM BRATTLE AND THE STAFF OVER AT C P S GETTING US THROUGH THAT WITH, UH, YOU KNOW, KIND OF BIMONTHLY MEETINGS DURING THE SUMMER.
I THINK ANYBODY THAT'S BEEN AROUND CITY HALL VERY LONG, UH, PROBABLY REALIZE THAT WITH ALL OF THE WINTER STORM ISSUES, UH, THE DISCONTINUANCE OF, UH, DISCONNECTS OR THE CON THE CONTINUANCE OF DISCONNECTS, THAT THERE WAS GOING TO BE RATE PRESSURE ON C P S.
SO WE MOVED THAT ALONG ABOUT TWICE AS FAST AS, AS WE HAD ORIGINALLY THOUGHT.
SO WE HAD TO KIND OF SPEED THAT UP.
WE THEN MOVED INTO THE NEXT PHASE WITH 21 MEMBERS.
UH, IT'S A REAL EXERCISE IN A LOT OF FOLKS, AND THEY'RE QUITE DIVERSE.
OKAY? WE'RE HOPEFUL THAT THE, THE 21 MEMBERS REPRESENT, UH, ACCURATELY, UH, THE MIX OF THE POPULATION.
AND THAT'S, THAT WAS OUR HOPE.
AND, AND I, I THINK WE HAVE A VERY GOOD COMMITTEE.
NOW,
MUCH LESS ALL OF 'EM AGREEING ON ONE THING.
BUT THAT'S GOOD BECAUSE WE GET A LOT OF DIVERSITY OF OPINION, AND I THINK THAT'S, UH, THAT'S HEALTHY FOR OUR COMMUNITY.
UH, IN THE PROCESS OF DOING THAT, WE SAID, LOOK, THERE'S, THERE'S, UH, ABOUT THREE THINGS WE REALLY NEED TO UNDERSTAND.
AND WE SPLIT THE, UH, THE GROUP UP AND LET 'EM CHOOSE OUR, THEY COULD COME TO ALL OF 'EM INTO WORKING GROUPS.
AND THE IDEA OF THAT WAS TO CREATE ONE GROUP THAT WOULD LOOK AT THE, THE POTENTIAL RATE INCREASE THAT WAS COMING FORWARD.
THE OTHER GROUP WAS TO LOOK AT, UH, WHAT WERE OTHER OPTIONS AROUND RATE MAKING THAT C P S NEEDED TO MAYBE LOOK AT THAT THEY HAVEN'T DIDN'T HAVE IN THEIR CURRENT PROCESS.
AND THE THIRD GROUP WAS TO LOOK AT POWER GENERATION.
WELL, THAT LASTED ABOUT A MONTH, AND THEN THIS PROCESS PICKED UP.
SO WE SAID, OKAY, TIME OUT ON THAT.
[00:05:01]
POWER GENERATION TILL AFTER THE RATE INCREASE AND PICK UP THESE OTHER TWO PIECES AND PUT 'EM INTO ONE GROUP.AND NOW WE'VE GOT EVERYBODY BACK TOGETHER, 21 PEOPLE IN THREE HOUR MEETINGS.
SO AGAIN, UH, YOU HAVE TO BE FLEXIBLE IN THIS BECAUSE OUR GROUP ACTUALLY, WE HAVE NO AUTHORITY.
THE C P S AND THE SAS BOARD HAS AUTHORITY.
UH, BUT WE HAVE NO AUTHORITY AND WE DON'T RUN ANYTHING THAT'S, THAT'S FOR THE, THE FOLKS AT C P S AND SAUSA DO.
ALL WE HAVE IS TO BRING IDEAS AND INFLUENCE FROM THE COMMUNITY.
AND I'M HOPEFUL THAT WE'RE GONNA BE ABLE TO DO THAT IN ORDER TO DO THAT, UH, THROUGH THIS RATE PROCESS, UH, WE'RE, WE'RE GOING THROUGH THE TRADITIONAL, TRADITIONAL PROCESS.
OKAY? WE'RE LOOKING AT THE REVENUE REQUIREMENT, YOU KNOW, WHAT'S REQUIRED.
NOW, I'M EXTREMELY LINEAR AS AN OLD PIPELINER.
IT GOES FROM POINT A TO POINT B STRAIGHT.
SO, UH, WE LIKE TO LOOK AT IT FROM, HERE ARE THE EXPENSES, HERE ARE THE, YOU KNOW, THE R AND R, THE OPERATING EXPENSES.
WE GO RIGHT DOWN THROUGH THE, UH, THE CASH THAT'S REQUIRED FOR CAPITAL.
THEN WE MOVE INTO, UH, PRINCIPAL INTEREST, CITY PAYMENT, AND RIGHT ON DOWN CREATING WHAT IS THE REQUIRED REVENUE.
AND, AND THEN PROJECT THAT OUT.
WE COMPARE THAT AS Y'ALL WILL.
AND THIS IS JUST TO LET YOU KNOW WHAT WE'RE DOING.
NOT THAT YOU'RE GOING TO OPINE ON IT HERE TODAY.
WE COMPARE THAT WITH A REVENUE STREAM IF THERE WAS NO RATE INCREASE, OKAY? THAT DELTA IS THE REVENUE REQUIREMENT.
THAT IS THE AMOUNT THAT THEY'RE GONNA ASK YOU TO APPROVE.
AND, AND THAT IS A VERY IMPORTANT NUMBER, BUT IT IS ONLY THE FIRST NUMBER.
THE NEXT NUMBER IS YOU HAVE TO UNDERSTAND WHICH GROUPS, OKAY, BETWEEN RESIDENTIAL, SMALL, COMMERCIAL, LARGE, COMMERCIAL AND ALL THAT, WHICH GROUP, UH, RECEIVES WHAT PART OF THAT COST? AND, AND THAT IS WHERE A LOT OF DISCUSSION COMES IN, BECAUSE THAT'S THE DISCUSSION THAT COMMUNITIES ALWAYS HAVE OF, WELL, THE INDUSTRIAL PEOPLE ARE SUPPORTING THE RESIDENTIAL, OR THE RESIDENTIAL PEOPLE SAY THE INDUSTRIAL PEOPLE ARE SUPPORT, YOU KNOW, BACK AND FORTH.
THERE'S A PRINCIPLE IN, IN RATE MAKING THAT NO CLASS OR GROUP OF CUSTOMERS SHOULD SUBSIDIZE ANOTHER GROUP OR CLASS OF CUSTOMERS.
I MEAN, THAT'S JUST A PRETTY MUCH BEEN A, BEEN A FOREGONE CONCLUSION TO DO THAT ALLOCATION.
UH, WE'RE USING THE 2017 STUDY THAT WAS DONE BY C P SS THAT GOES IN AND VERY METICULOUSLY USES ALLOCATION METHODS, WHICH WE'RE FRANKLY STILL TRYING TO UNDERSTAND TO TAKE THOSE COSTS FROM RESIDENTIAL FIXED AND VARIABLE COMMERCIAL FIXED AND VARIABLE, AND RUN 'EM RIGHT ON THROUGH.
AND ONCE WE GET THE BIG BUCKET OF COSTS SPLIT UP INTO THESE CATEGORIES, WE NOW HAVE THE THIRD CHALLENGE.
AND THAT IS, HOW DO YOU ACTUALLY BILL, YOU KNOW, THE CUSTOMER, HOW DO WE DEAL WITH OUR CUSTOMER? AND WHAT DOES THE CUSTOMER SEE WHEN THEY OPEN THAT BILL? THAT THAT IS WHERE
AND THAT IS A VERY DIFFICULT DISCUSSION.
WE'RE GOING TO DEDICATE THREE HOURS TO THAT DISCUSSION IN THE NEXT MEETING.
THAT'S PARTICULARLY IMPORTANT FOR PEOPLE THAT, UH, WHERE YOU HAVE TO, TO CONSIDER MAYBE JUST A LITTLE BIT MORE THAN JUST THE NUMBERS.
LIKE WHAT IS THE IMPACT? AND, AND ELOISA AS THE, AS THE, UM, VICE CHAIR IS HELPING ME A LOT WITH THIS.
WHAT'S THE IMPACT? WHAT, YOU KNOW, BEFORE WE HAVE THE RATE INCREASE, WHAT IS THE, UM, AS THEY'D CALL, WHAT'S THE ENERGY BURDEN ON THE PEOPLE? WHAT IS THE ENERGY BURDEN AFTERWARDS? HOW IS THAT ENERGY BURDEN INCREASE BEING MITIGATED BY AN INCREASE IN THE RATE IT COMES BACK UP TO THE TOP THAT YOU'LL APPROVE.
SO TO SOME EXTENT, WE HAVE TO THINK ABOUT NOT JUST NUMBERS.
THE NUMBERS ARE PRETTY, BUT WHEN YOU START GETTING TO THE PEOPLE, IT GETS PERSONAL.
AND WE HOPE THAT WE'LL HAVE SOME OF THAT FLUSHED OUT.
EVERYBODY HAS ASKED ME ONE QUESTION.
I'VE PROBABLY GOT IT 20, 30 TIMES.
UH, WELL, WHAT ARE YOU GONNA DO IN THE END? YOU GONNA VOTE? I'M NOT BIG ON VOTES.
I, BECAUSE AGAIN, A VOTE IS LIKE AN AVERAGE.
IT DOESN'T TELL YOU A WHOLE LOT.
IT DOESN'T GIVE YOU A LOT OF INFORMATION.
HOPEFULLY IT'LL BE, WE WILL BE ABLE TO PRODUCE SOMETHING THAT WILL BE INFORMATIONAL OKAY.
TO, UH, THE C P SS BOARD AND INFORMATIONAL TO THE COUNCIL.
IF IT'S NOT INFORMATIONAL, A VOTE JUST SAYS SO MANY WERE FAR, SO MANY WERE AGAINST.
AND THEN A LOT OF PEOPLE DON'T EVEN UNDERSTAND WHAT THEY WERE VOTING ON.
SO WE WILL TRY TO BREAK IT DOWN INTO SPECIFIC PARTS AND TRY TO THEN SEE IF WE CAN GET INDIVIDUALS TO TELL US HOW THEY BELIEVE THOSE PARTS SHOULD BE AFFECTED AND HOW, HOW THEY SHOULD BE DONE.
I CAN, I CAN GIVE YOU SEVERAL EXAMPLES IF, IF YOU WANT TO.
IF NOT, I CAN SHUT UP AND SEE IF THERE'S ANY QUESTIONS.
YOU KNOW, I CAN SIT DOWN, RIGHT?
[00:10:01]
THERE A COUPLE MINUTES.'CAUSE I'M SURE YOU MAY HAVE A QUESTION OR TWO.
I REALLY APPRECIATE, UH, WHAT YOU TALKED ABOUT HERE AS AN ENERGY BURDEN.
AND I THINK WHEN WE TALK ABOUT OUR CITY, WE HAVE A LOT OF HAVES AND WE HAVE A LOT OF HAVE-NOTS.
AND I THINK MANY OF US ARE ALWAYS CONCERNED ABOUT MAKING SURE THAT IF WE'RE, WE'RE TALKING ABOUT RATES, THAT THE BURDEN DOESN'T FALL ON ANY ONE GROUP MORE THAN THE OTHER.
OR, YOU KNOW, HOW DO PEOPLE LIVE WITH THAT BURDEN, UH, GOING FORWARD, RIGHT? WHEN IT COMES TO RATES.
SO I REALLY APPRECIATE THE CONSIDERATION THAT YOU AND THAT COMMITTEE IS LOOKING AT, UH, WHEN YOU TALK ABOUT TRYING TO LOOK AT ALL THE DIFFERENT PIECES, THE EXPENSES, WHAT IT WILL COST IN THAT DELTA FOR THEM TO DEVELOP A RATE, AND HOW IT REALLY AFFECTS THE POCKETBOOK OF, OF EVERYBODY IN OUR COMMUNITY, WHETHER IT'S A BUSINESS OR AN INDIVIDUAL.
UH, YOU KNOW, THAT, THAT THOUGHT PROCESS THAT YOUR COMMITTEE'S GOING THROUGH, WELL, ELOISE IS SCHOOLING ME PRETTY GOOD ON THAT.
SO I THINK I'M, I THINK I'M GONNA GET IT DOWN FOR START WITH.
I'D LIKE TO, UH, ASK ANY OTHER COMMITTEE MEMBER IF THEY HAVE A QUESTION.
UH, CHAIR, IT REALLY KIND OF, UH, UH, SORRY, TAKE THIS OFF.
UM, PIGGYBACKING ON, UH, WHAT CHAIR COURAGE MENTIONED, CAN YOU TELL ME WHERE IN THE PROCESS OF, UH, REVIEWING FOR A POTENTIAL RATE INCREASE THAT WE WOULD, THAT YOU WOULD LOOK AT THE OPPORTUNITY TO EXAMINE THE DISPARATE RATE IMPACT ON DIFFERENT HOUSEHOLDS? YEAH, IT WOULD BE IN THE THIRD STEP.
ONCE YOU KNOW HOW MUCH GOES TO RESIDENTIAL, OKAY, THEN YOU WILL KNOW WHAT IT IS.
AND REMEMBER, WE'RE NOT JUST TALKING ABOUT A RATE INCREASE, WE'RE TALKING ABOUT A TOTAL IMPACT ON THE CUSTOMER.
YOU'VE GOT THE RATE, YOU'VE GOT THE FUEL ADJUSTMENT.
OKAY? AND SO YOU'VE GOT TO LOOK AT THE, BECAUSE FUEL PASSES THROUGH, WE PASS POWER PURCHASE AGREEMENTS THROUGH, WE, WE PASS THE STEP THROUGH, WE PASS A LOT OF STUFF THROUGH THE, THROUGH THE FUEL ADJUSTMENT.
IT DOESN'T GO THROUGH THE RATE.
SO WE HAVE TO BE CAREFUL TO UNDERSTAND HOW THE BILL, WHEN THE PEOPLE LOOK AT IT, WHAT PIECES COME THROUGH, WHICH, BUT ON THE TOTAL, UM, COST OR IMPACT, HOWEVER YOU WANT TO SAY IT TO THE CUSTOMER IS WHERE, WHERE WE WILL ALSO BE TALKING.
SO IF SO MUCH GETS ALLOCATED TO THE RATE, OKAY, IN RESIDENTIAL, THEN WE'RE TRYING TO GET SOME DATA NOW, HOPEFULLY WE'LL BE SUCCESSFUL AND MAYBE HELP APPARENTLY CARDELL, WE, BRATTLE HAS SOME OF THIS TO SEE WHAT, TO SEE IF WE CAN DEFINE OUR CURRENT, UM, UH, WHAT I'D CALL ENERGY BURDEN BY KIND OF CLASS OR BY INCOME LEVEL.
AND, AND THEN WE WILL SEE WHAT THE INCREASE NOT ONLY THROUGH THE RATE, BUT THE INCREASE ALSO THROUGH THINGS LIKE THERE'S, WE'RE GONNA HAVE TO BE DEALING, AND BEN WILL TALK TO YOU MUCH MORE ABOUT THE COST FROM THE, UH, WINTER STORM.
AND THERE'S APPROXIMATELY, I THINK FOUR $50 MILLION HAVE ALREADY BEEN SETTLED THAT, UH, WE'LL GO INTO A REGULATORY ASSET THAT WILL ACTUALLY GET CHARGED INTO EITHER THE RATE OR THE FUEL ADJUSTMENT.
THERE'S A LOT OF THINGS THAT HAVE TO HIT, BUT ONCE IT HITS THAT YOU CAN THEN LOOK AT INCOME CATEGORIES AFTER THE FACT AND, AND SEE HOW THIS, HOW WE ARE TODAY.
I DARE SAY MOST PEOPLE CAN'T STAND UP AND SAY, THIS IS WHERE WE ARE ON THE IMPACT, UH, TO OUR CUSTOMERS.
SO WE'RE GONNA TRY TO DO THAT.
I, I CAN'T GIVE YOU ANY GUARANTEE.
WE'LL GET THERE, BUT WE'LL TRY.
AND THEN WE NEED TO THINK ABOUT WHAT THIS IMPACT DOES AND THEN HOW THE PROGRAMS WORK THAT YOU'RE PAYING FOR IN THE RATE, COME BACK AND MITIGATE THAT IMPACT.
AND IS THERE ENOUGH PROGRAMS AND IS THERE ENOUGH MONEY IN THE PROGRAMS TO MITIGATE THAT IMPACT? SO IT'S KIND OF A CIRCULAR DEAL.
COUNCIL, I APPRECIATE THAT THOUGHT, THAT THOUGHTFULNESS.
I THINK IT IS IMPORTANT TO GET THERE.
I MEAN, I, I APPRECIATE WE'LL, LOOK IT, WE'LL DEFINITELY LOOK AT IT THAT YOU'LL TRY AND I, I, I APPRECIATE THAT YOU SAID ENERGY BURDEN.
CAN YOU DEFINE THAT, THAT FOR ME? WELL, I, IF I CAN GET IT RIGHT FROM WHAT I'VE BEEN TAUGHT MM-HMM.
IT IS THE PERCENT THAT YOU, THAT AN, THAT A HOUSEHOLD PAYS OUT OF THEIR DISPO DISPOSABLE INCOME FOR ENERGY.
SO YOU'RE TAKING INTO ACCOUNT AGGREGATE, YOU KNOW, WHERE PEOPLE LIVE AND, AND THEIR INCOMES AND, UM, WELL, PRIMARILY, UH, THE METRIC IS PRETTY MUCH GONNA BE INCOME REGARDLESS OF WHERE THEY LIVE, BECAUSE YOU COULD HAVE SOMEONE LIVING IN A DISTRICT THAT'S, OR A ZIP CODE OR SOMETHING THAT HAS VERY HIGH INCOME, BUT THEY MIGHT BE LIVING RIGHT ON THE EDGE OF POVERTY.
SO YOU CAN'T, I DON'T THINK YOU SEGREGATE, SEGREGATED, I DON'T THINK I'M GONNA BE ABLE TO GET DOWN TO THE, TO THE, TO THE ZIP CODES IN THIS, IF YOU SURE.
I MEAN, I THINK IT'S IMPORTANT THAT WE'RE ABLE TO SEE HOW RATE CHANGES WILL AFFECT, UH, FAMILIES AS A PERCENTAGE OF THEIR HOUSEHOLDS.
SO THAT'S DEFINITELY BEEN BROUGHT TO MY ATTENTION MANY TIMES.
A AND, AND THE, YOU, YOU MENTIONED STEP THREE.
[00:15:01]
YOU COULD SEND US LATER THAT SORT SHOWS THESE, LIKE THE STEPS? SO WE, WE WILL KNOW, WE CAN FOLLOW ALONG IN THE PROCESS AND WE CAN, AND THE PUBLIC CAN FOLLOW ALONG.YEAH, I THINK BEN AND HIS GROUP HAVE GOT THAT DOWN.
LIKE PAT, AND SO I'LL LET THE STAFF TAKE CARE OF THAT.
ANY OTHER, UH, COUNCILWOMAN SANDOVAL AND THEN ROCHA GARCIA.
COUNCILMAN, THANK YOU VERY MUCH FOR BEING HERE.
UM, AND THANK YOU FOR YOUR SERVICE ON THIS COMMITTEE AS WELL AS THE EMERGENCY PREPAREDNESS, UH, COMMITTEE.
UM, UH, JUST A, A COUPLE OF QUESTIONS I OR COMMENTS FIRST.
I ALSO WANNA THANK THE OTHER MEMBERS OF THE REC THAT ARE HERE TODAY.
I BELIEVE THERE'S AT LEAST, UH, ONE, SO WE HAVE MS. DEI EZ.
OH, IS THAT, ARE YOU, IS THAT YOU? YEAH,
AND I ALSO WANT TO THANK MS, UH, ELISA PORTILLO MORALES, WHO'S THE DISTRICT SEVEN, UH, APPOINTEE AND IS SERVING AS VICE CHAIR.
AND I WANNA THANK HER FOR BRINGING THE CONCEPT OF, UH, OF EQUITY AND, AND HOW TO IMPLEMENT IT IN A, IN A SITUATION LIKE THIS.
UM, I DO THINK IT'S, UH, THE PROCESS YOU'VE DESCRIBED TO ME ABOUT THE STOPS AND THE STARTS.
UM, THANK YOU FOR, FOR BEING SO FLEXIBLE.
I, I DO THINK IT'S UNFORTUNATE THAT WE ARE NOT GOING TO BE ABLE TO HAVE THE RACK TAKE A THOROUGH REVIEW AND MAYBE ADJUSTMENT OF THE CURRENT, UH, RATE STRUCTURE BEFORE OPINING ON THE PROPOSED.
IS, IS THAT BASICALLY WHAT'S, WHAT'S GONNA HAPPEN? WELL, I THINK WE, WE WILL LOOK AT A FEW ITEMS OKAY.
THAT ARE COME TO ATTENTION OKAY.
AND, AND WE, WE DON'T BELIEVE THERE'S SOME PEOPLE THAT WANT US TO LOOK AT BLOCK RATES, UH, THAT SOME OF US WANNA LOOK.
SOME PEOPLE WANT US TO LOOK AT, UH, TIME OF DAY RATES.
UH, FRANKLY, UH, WE HAVE TO UNDERSTAND WHAT THE TECHNOLOGY LIMITATIONS ARE.
UH, MOST OF THE INFORMATION SYSTEMS IS RELIANT, ARE RELIANT ON, UH, ON WIFI.
SO, UH, WE'VE GOTTA SEE WHAT TECHNOLOGICALLY WE CAN DO ON SOME OF THESE.
UH, THERE'S OBVIOUSLY, UH, SOME DISCUSSION ON, UH, THE, THE DISCONNECT BETWEEN THE, THE BUSINESS MODEL, WHICH HAS FIXED AND VARIABLE COST, UH, WITH THE RECOVERY MODEL, WHICH HAS FIXED AND VARIABLE COST.
IF YOU LOOK ON THE BILL, THERE'S A SMALL AMOUNT OF FIXED COST, AND THERE'S A LARGE AMOUNT OF VARIABLE COST.
AND THAT WAS ALWAYS DONE AT THE RETAIL LEVEL FOR CONVENIENCE TO THE CUSTOMER, IS THAT YOU COULD SAY YOU'RE ONLY PAYING FOR ENERGY.
WELL, THE REALITY IS, YOU, YOU MIGHT NOT BE RECOVERING THE FULL FIXED COST, PARTICULARLY IN SOME APPLICATIONS WHERE PEOPLE ARE ALLOWED TO SELL BACK INTO THE, TO THE GRID.
UH, SO THERE WILL BE SOME DISCUSSION ON FIXED AND VARIABLE RECOVERY WHERE YOU'VE GOT A DECISION OF HOW MUCH OF THE RATE IS GOING TO BE, SO TO SPEAK, FIXED, AND HOW MUCH OF IT'LL BE ASSIGNED TO THE, TO THE RATE ITSELF.
SO SOMETHING I WOULD LIKE TO SEE IN THE ANALYSIS OF THE FIXED VERSUS VARIABLE COST IS THE MULTIFAMILY PORTION OF THE FIXED COST, ESPECIALLY IN A CASE WHERE YOU MAY HAVE, UH, AN ACCESSORY DWELLING UNIT WHERE I, RIGHT.
MY SENSE IS THAT THE FIXED COST WOULD NOT BE THAT MUCH GREATER FOR THE A D U AS OPPOSED TO THE, UM, I MEAN, ONCE YOU HAVE TWO, TWO ACCOUNTS ON THE SAME SITE, THEY REALLY SHOULDN'T BOTH CARRY, UH, YOU KNOW, THE SAME BURDEN AS A SINGLE FAMILY HOUSE.
AND, AND, AND I THINK THAT'S SOMETHING I'LL NEED TO LOOK INTO.
WE TALKED ABOUT THAT AT SOME POINT.
UH, AND I DON'T KNOW WHAT ALLOCATION AND COST ACCUMULATION IT, IT WILL REALLY DEPEND ON THE 2017 RATE STUDY.
DID THEY ACCUMULATE COSTS BY MULTI-FAMILY VERSUS SINGLE FAMILY? IF THEY DID MAKE THAT ALLOCATION, IF THEY DID MAKE THAT, THAT, IF YOU WILL, ALLOCATION OF COST TO TWO DIFFERENT KINDS OF RESIDENTIAL, THEN I THINK WE'VE GOT A CHANCE AT THAT.
IF THEY DIDN'T, THEN I, WE, I'M NOT SURE.
UM, I'VE ALSO HEARD SOMETHING ABOUT THE STEP PROGRAM, UH, POSSIBLY NOT BEING, UH, TAKEN ON IN THE NEXT RATE INCREASE.
OR IS THAT SOMETHING I COULD ASK YOU? YES.
WELL, WE DON'T HAVE ANY AUTHORITY ON CHANGING THE STEP THAT'S BEEN VOTED ON BY YOU AND VOTED ON BY THE, BY THE BOARD OF C P S.
UH, WHAT COULD POTENTIALLY BE POTENTIALLY BE LOOKED AT BY OUR COMMITTEE, BUT NOT EVEN CONSIDERED BY EITHER ONE OF THE AUTHORITY BOARDS, IS, UH, IF INDIVIDUALS, UM, HAVE SOLAR PANELS AND THEY, UH, DON'T USE MUCH, UM, POWER FROM US.
IN OTHER WORDS, THEY SUPPLY MOST AND SELL SOME BACK, THERE IS AN ARGUMENT THAT IN ORDER TO STAY CONNECTED TO THE GRID, THEY ARE ACTUALLY RELYING ON,
[00:20:01]
ON INVESTMENTS WE'VE MADE IN CAPITAL THAT THEY'RE RELYING ON IF THEY NEED IT.LET'S SAY, YOU KNOW, WE HAVE SOME WINTER EVENT WHERE THE, THE SOLAR DOESN'T WORK OR THEIR SOLAR PANEL AND THEIR INVERTER JUST BREAKS.
THEY BREAK ALL THE TIME OR SOMETHING, THEN, THEN THEY CAN GO ON THE GRID.
AND IS THERE PROPER, UH, COST RECOVERY, UH, ON FIXED COST FOR PEOPLE THAT ARE, HAVE NETTING METERS? I I THINK THERE WILL BE SOME DISCUSSION ON THAT.
IT'S NOT A DISCUSSION ON STEP, IT'S MORE OF A DISCUSSION ON THE MATCHING LOCATION MATCHING UP FIXED AND VARIABLE COST.
YOU'RE NOT GETTING OFF THAT EASY.
AND IF YOU DO, UM, I THINK THOSE ARE ALL FAIR QUESTIONS FOR, FOR THE STEP PROGRAM.
COUNCILWOMAN, COUNCILWOMAN ROCHA GARCIA.
AND THANK YOU, UH, COUNCILMAN, ALWAYS HAPPY TO SEE YOU.
UM, AND THEN ALSO WANTED TO THANK, UH, MY REPRESENTATIVE ON THE RECORD IS PETER FRI.
HE GAVE ME A FULL PRESENTATION WITH ALL OF YOUR SLIDES AND EXPLAINED EVERYTHING VERY FULLY, UM, A COUPLE OF WEEKS AGO.
SO, SO THANK YOU FOR, FOR BEING SO THOROUGH WITH THAT.
I MEAN, HE DOWN TO THE LAST NUMBER I OH, YEAH.
HE WAS CRUNCHING NUMBERS FOR ME.
UM, THE, I I WAS WONDERING, SO, AND YOU MENTIONED THIS, YOU ALL HAVE ALREADY LOOKED AT THE EQUITY LENS, AND COUNCILWOMAN CAVEDA MENTIONED THIS, AND I JUST WANTED TO BE VERY, VERY SPECIFIC IN, IN MY REMARKS.
WE OFTEN COMPARE C P S ENERGY TO OTHER CITIES, BUT WE KIND OF FORGET TO INCLUDE THE INFORMATION ON WAGES, WHICH IS TO THE POINT THAT SHE WAS TRYING TO MAKE EARLIER.
UM, AND WE, OUR WAGES HAVE BEEN STAGNANT, AND WE JUST HAVE TO REMEMBER THAT WE HAVE TO COMPARE THE APPLES TO APPLES.
AND SO WE'RE LOOKING AT OTHER CITIES, BUT NOT NECESSARILY AT, AT INCOME LEVELS.
AND THAT JUST GIVES ME, UM, CAUSE FOR CONCERN, RIGHT? BECAUSE WE KNOW THAT, UH, THAT, THAT THINGS, UH, AFFECT CITIES DIFFERENTLY AND, AND ZIP CODES.
AND SO I KNOW THAT YOU MENTIONED THAT YOU WOULDN'T BE ABLE TO KIND OF BREAK DOWN BY ZIP CODES SPECIFICALLY.
UM, BUT IS THERE AN OPPORTUNITY TO MAYBE GET A LITTLE BIT MORE INNOVATIVE IN, IN REGARD TO THAT PRACTICE AND SEE WHAT WE CAN DO TO PEOPLE WHO ARE BARELY MAKING ENDS MEET? WELL, WE'LL, WE CERTAINLY ARE ON THAT TRACK, AND, AND ELOISE IS ON IT EVERY DAY.
SO
I DON'T KNOW WHAT DATA'S AVAILABLE AND I, I CAN ONLY DO WITH WHAT I HAVE AND SURE.
BUT WE, WE DO HAVE A COMMITMENT TO WORK ON THAT AND TO WORK IN A DIRECTION THAT GIVES YOU SOMETHING MEANINGFUL TO UNDERSTAND BEFORE YOU HAVE TO, AND AS YOU HAVE TO LOOK AT THE NUMBERS.
THAT'S, THAT'S ALL I WAS JUST LOOKING FOR.
I'M TRYING TO FIGURE OUT HOW IT IS THAT WE CAN HELP THOSE THAT ARE, UH, STRUGGLING EVEN MORE RIGHT NOW.
AND IT'LL COME BACK TO, UH, YOU KNOW, WHAT'S, WHAT'S IN THE RATE.
IN OTHER WORDS, IF, IF WE POTENTIALLY SEE THAT THE RATE INCREASE IS VERY HARMFUL TO LOWER INCOME, UH, FAMILIES, THEN, THEN MAYBE THERE NEEDS TO BE MORE PUT IN THE RATE THAT CAN THEN TURN AROUND AND BE SPENT TO HELP 'EM.
THAT'S YOUR DECISION, NOT MY DECISION.
THANK YOU, REED, FOR THAT PRESENTATION.
O ONE WORD THAT YOU USED THERE, UH, OR ONE PHRASE YOU USED THERE THAT REALLY STOOD OUT TO ME IS THAT YOU HAVE NO AUTHORITY.
AND, UM, IT TAKES ME BACK TO WHEN I, I WAS PART OF A GROUP THAT HELPED ADVOCATE FOR THIS RAID ADVISORY COMMITTEE.
UM, AND THE IDEA WAS THAT, YOU KNOW, C P S ENERGY STAFF GO AND THEY MAKE RECOMMENDATIONS TO THEIR BOARD.
OR THEY MAKE RECOMMENDATIONS TO THE COUNCIL, AND THEN THEY'RE VOTED ON.
AND SO THE IDEA IS THAT THERE WOULD BE AN A, A, A POTENTIAL ALTERNATIVE VIEWPOINT THAT WOULD BE PRESENTED TO STAFF TO, TO THE C P S ENERGY BOARD OR TO CITY COUNCIL BEFORE WE VOTE ON ANYTHING.
AND SO, UM, YOU KNOW, I, IT JUST, IT, IT, YOU MAY NOT HAVE THE AUTHORITY TO, TO MAKE A FINAL DECISION, BUT YOU DO HAVE THE ABILITY TO SIT AT A TABLE TOGETHER AS REPRESENTATIVES OF THE COMMUNITY, WEIGH IN ON AN ISSUE, AND THEN GO AND MAKE A RECOMMENDATION.
AND SO I FEEL LIKE YOU ARE AUTHORIZED TO MAKE A RECOMMENDATION TO US MM-HMM.
AND SO IT'S MY HOPE AND MY EXPECTATION THAT YOU ALL WILL WEIGH IN ON AND MAKE RECOMMENDATIONS ON RATE STRUCTURE MM-HMM.
WELL, YOU, YOU, YOU, YOU, YOU NAILED IT.
YOU SAID IT, WE DON'T HAVE AUTHORITY, DO HAVE RESPONSIBILITY.
[00:25:01]
I THINK WHAT YOU WERE PUSHING FOR WAS TO RECOGNIZE THAT WE HAVE A RESPONSIBILITY TO DO THIS, AND WE WILL FOLLOW OUR RESPONSIBILITY.HOWEVER, WE HAVE TO UNDERSTAND THE BEST DECISIONS THAT GET MADE IN ANY PLACE ARE WHERE YOU HAVE THE PEOPLE THAT CAN AFFECT THE DECISION, WHICH ARE THE PEOPLE THAT RUN THE BUSINESS, AND THE PEOPLE THAT OVERSEE THE BUSINESS LIKE YOU AND THE, THE BOARD, AND THEN THE COMMUNITY, WHICH I THINK WE REPRESENT, WHICH IS THE, IS THE INFLUENCERS OF THE PEOPLE, THAT THIS IS WHAT IS CONCERNING US.
AND SO WHEN YOU HAVE COMBINED, UH, AUTHORITY, POWER, AND INFLUENCE, YOU GET GOOD DECISIONS.
AND SO I SEE OUR RESPONSIBILITY AS, AS THAT THIRD LEG OF THE STOOL, WHICH IS TO BRING, UH, PEOPLE'S CONCERNS TO BOTH THE BOARD, PRIMARILY TO THE BOARD.
WE'RE SUPPOSED TO REPORT TO THE BOARD.
WE DO REPORT TO THE BOARD, THE C P SS BOARD, AND TO TALK WITH, IN DIALOGUE WITH THE, WITH THE C P SS.
MAN, WE THINK THESE ARE THINGS THAT NEED TO BE CONSIDERED.
YOU KNOW, THERE WERE TWO THINGS THAT YOU MENTIONED THAT CAUGHT MY ATTENTION.
ONE WAS ABOUT FUEL ADJUSTMENTS.
THE OTHER WAS ABOUT THE, UH, THE 2017 YEAR BEING USED AS KIND OF THE BASE YEAR TO PUT THIS TOGETHER.
AND IT SEEMS TO ME WE'RE IN 2021, AND WE KNOW THIS YEAR, AND, AND CERTAINLY LAST YEAR WE'RE BAD YEARS TO USE AS AN EXAMPLE, BUT I DON'T KNOW WHY.
I GUESS THE 2017 YEAR STARTS IN 2016 AND ENDS IN 2017.
SO WE'RE REALLY LOOKING AT INFORMATION THAT'S NEARLY FOUR AND A HALF YEARS OLD.
WHY, WHY WE'RE NOT USING 2018 OR 2019 OR AN AVERAGE OF THOSE THREE TO HELP US UNDERSTAND WHAT THE BASE SHOULD BE THAT WE'RE WORKING FROM.
DID ANYBODY EXPLAIN THAT TO YOU? WELL, IT WAS EXPLAINED THAT, THAT THOSE YEARS WERE, WOULD BE AVERAGE, WOULD BE, UH, UH, ABERRATIONS BECAUSE OF THE COVID AND, AND, UH, THEREFORE THEY WOULDN'T BE REPRESENTATIVE.
UH, IT TAKES ABOUT A YEAR TO DO A RATE STUDY.
WHEN WE DO IT ON THE PIPELINES, IT TAKE ABOUT SIX MONTHS.
UH, IT'S A MUCH SIMPLER PROCESS, BUT, UH, AND WE HAVE A LOT FEWER COSTS TO DEAL WITH.
BUT, UM, UH, WHEN I ASKED, THEY BELIEVE THAT THE 2017 IS STILL REPRESENTATIVE OF, AND LET ME GET THIS WORDING CORRECT, AND EVERYBODY UNDERSTAND IT'S STILL REPRESENTATIVE OF WHO WAS CAUSING CERTAIN COSTS TO BE INCURRED.
THAT'S THE WAY YOU HAVE TO LOOK AT IT, BECAUSE IF A RESIDENTIAL GROUP CAUSES CERTAIN COSTS OR RESPONSIBLE FOR CERTAIN COSTS, I'M NOT A VERY GOOD WORDSMITH.
IF THEY'RE RESPONSIBLE FOR CUR CERTAIN COSTS, THOSE COSTS GET ALLOCATED TO 'EM.
AND THE, THE DIS THE DISCUSSION I'VE HAD IS THAT C P S STILL BELIEVES, UH, THAT 20 17, 20, IT RAN, I ASSUME FROM FEBRUARY 1ST, 2016 THROUGH THE END OF JANUARY, 2017, THAT THAT PERIOD, THAT TEST PERIOD IS STILL APPROPRIATE.
DID ANYONE, UH, ASK WHETHER OR NOT, WHETHER WAS A FACTOR? IN OTHER WORDS, WAS 20 16 17 A REALLY HOT YEAR WHERE ENERGY WAS VERY HIGH? WAS IT A REALLY LOW YEAR WHEN ENERGY WAS PRETTY LOW? DOES THAT IMPACT THAT AS A BASELINE? I TOOK A CURSORY LOOK AT IT.
I'M SURE THAT THE C P S FOLKS ARE MUCH MORE QUALIFIED TO ANSWER THAN I AM.
CERTAINLY, IF WE'D USED SOMETHING IN THIS YEAR, IT WOULD'VE BEEN AN ABERRATION WITH THE, WITH THE WINTER STORM.
I, I DIDN'T REALLY SEE ANYTHING.
THEY DID SELL, UH, SOME POWER IN THAT, IN THAT PARTICULAR YEAR.
UH, IT WAS NOT A BAD YEAR FOR SELLING WHOLESALE POWER INTO THE GRID.
UM, BUT I, I THINK THAT'S AN ANSWER THAT I PROBABLY, I'M NOT QUALIFIED TO ANSWER.
THE OTHER THING WAS ABOUT FUEL ADJUSTMENT AND IS THERE A DIFFERENCE BETWEEN THE RATES AND FUEL ADJUSTMENTS AND YEAH.
AND CONSIDERING THAT WE MAY HAVE COMING DOWN THE ROAD, MAJOR FUEL ADJUSTMENTS BECAUSE OF THESE SUITS THAT HAVEN'T BEEN RESOLVED, UH, IF WE PASS A RATE, X AMOUNT, WHATEVER IT IS, COULD WE ALSO THEN BE SEEING A HUGE FUEL ADJUSTMENT AFTER THE SETTLEMENT OF THESE CASES TOO? I THINK THAT DEPENDS ON WHERE C P SS DECIDES TO, TO PUT THE, THE RECOVERY OF THAT REGULATORY.
IF THEY PUT IT IN THE RATE, YOU'LL SEE IT IN THE RATE.
IF THEY PUT IT IN THE FUEL ADJUSTMENT, YOU'LL SEE IT IN THE FUEL ADJUSTMENT.
SO YOU'LL HAVE TO, I, I DON'T KNOW WHERE THEY'RE GONNA PUT IT, BUT THEY GOT TWO OPTIONS.
AND ULTIMATELY, I'M SURE, UH, IN CONSULTATION WITH BEN AND THEIR AUDITORS AND EVERYBODY ELSE, THEY'LL FIGURE OUT THEY'RE SMART PEOPLE, THEY'LL FIGURE OUT WHERE THE PROPER PLACE IS.
MY POINT IS, YOU KNOW, YOU HAVE TO LOOK AT BOTH OF THOSE TO UNDERSTAND THE TOTAL IMPACT ON YOUR CUSTOMER.
I DON'T HAVE ANY OTHER QUESTIONS.
[00:30:01]
MEMBER? THANK YOU VERY MUCH.UH, I WANT THE AUDIENCE TO KNOW THAT WE DO HAVE SPEAKERS SIGNED UP, BUT I NOTICED THAT MANY OF THEM WANTED TO TALK ON THIS PARTICULAR ISSUE, AND I WANTED THEM TO HEAR THIS INITIAL PRESENTATION BEFORE THEY SHARED THEIR COMMENTS.
SO I'M GOING TO INVITE THE, THE SPEAKERS WHO HAVE SIGNED UP TO COME UP AND TALK.
I WILL ALSO ADD THAT MANY OF YOU MAY NOT KNOW, BUT, UH, C P S UH, PRESIDENT IS ONLINE LISTENING IN PAULA GOLD WILLIAMS. SHE WASN'T ABLE TO MAKE THIS MEETING.
SHE'S GOT ANOTHER, BUT SHE DID WANT TO TUNE IN, SO I JUST WANTED TO ACKNOWLEDGE THAT SHE'S PRESENT BY PHONE LISTENING INTO THE MEETING RIGHT NOW.
AND SO, AT THIS TIME, I'LL GO AHEAD AND CALL
[Public Comment]
ON THE SPEAKERS WHO HAVE SIGNED UP.THE FIRST SPEAKER IS DARBY RILEY.
THANK YOU FOR YOUR PATIENCE, EVERYBODY.
I'M, UH, ON THE EXECUTIVE COMMITTEE OF THE LOCAL SIERRA CLUB.
AND THE CONCERN THAT MANY OF US HAVE ABOUT THE RATE ADVISORY COMMITTEE IS THAT THE RECOMMENDATIONS OF THE COMMITTEE WILL BE DISREGARDED BY THE C P S ENERGY STAFF AND BOARD JUDGING FROM THE PAST ACTIONS OF C P S ENERGY.
THE ONLY WAY THAT INPUT FROM CITIZENS WILL BE MEANINGFULLY CONSIDERED IS IF IT IS, UH, DONE BY THE CITY COUNCIL.
WHEN IT COMES TO RATES, THE COUNCIL IS IN A VERY DIFFICULT POSITION BECAUSE THE CITY GOVERNMENT IS DEPENDENT UPON 30% OF ITS BUDGET COMING FROM C P S ENERGY AROUND $400 MILLION A YEAR.
THIS EXPLAINS WHY THE CITY OF DALLAS IS CONSIDERING A PROPERTY TAX RATE OF 77 CENTS PER HUNDRED DOLLARS, WHEREAS THE CITY OF SAN ANTONIO IS AT 53 CENTS.
THE CITY COUNCIL'S IN THE HABIT AND THE CUSTOM OF ALLOWING C P SS ENERGY TO MAKE THE MONEY DECISIONS AS LONG AS THEY ENSURE THAT SAN ANTONIO GETS ITS 14% PROFIT.
WHAT OTHER CITIES HAVE FOUND IS THAT THE RATE STRUCTURE FOR AN ENERGY UTILITY IS TIED TO ITS WILLINGNESS AND ABILITY TO TACKLE CLIMATE CHANGE.
IN OTHER WORDS, THE RATE STRUCTURE ALLOWS YOU TO TAKE ON CLIMATE CHANGE, TO TAKE ON FAIRNESS WITH RESPECT TO LOW INCOME CUSTOMERS, REDUCTION OF FOSSIL FUEL BURNING, INCREASE OF EFFICIENCY, WHICH IS THE BEST SOURCE OF ENERGY AND, AND THE CLEAN AIR ISSUES THAT WE HAVE TO ADDRESS THESE ISSUES, THE CITY COUNCIL WILL HAVE TO BECOME MUCH MORE INVOLVED IN THE RATE SETTING PROCESS.
THE DECOUPLING OF PROFITS AND REVENUE FROM SALES OF FUEL IS ESSENTIAL AT PRESENT.
AS MS. GOLD WILLIAMS SAYS, CONSERVATION COSTS MONEY AND C P S IS CONTEMPLATING CANCELING THE STEP PROGRAM BECAUSE THEY CANNOT AFFORD IT.
THE DECOUPLING OF RATES IS REQUIRED IN CALIFORNIA FOR PUBLICLY OWNED AND PRIVATELY OWNED UTILITIES, AND THAT'S WHY THEY USE LESS ENERGY PER CAPITA THAN ANY OTHER STATE.
DECOUPLING SETS THE RATES TO PAY ALL COSTS AND OBLIGATIONS OF THE UTILITY AND GUARANTEES THE CITY'S RATE OF RETURN.
THIS IMPROVES THE ABILITY OF THE UTILITY TO PROMOTE ENERGY EFFICIENCY AND DISTRIBUTED GENERATION LIKE PROMOTING SOLAR PANELS RATHER THAN JUST, UH, HAVING SOME OUT THERE DECOUPLING INCENTIVIZES EFFICIENCY.
EFFICIENCY IS, IS THE BEST CLEANEST FORM OF ENERGY AND CHEAPEST THE ENERGY THAT WE DON'T USE.
DECOUPLING HAS ALSO BEEN ADOPTED TO ONE DEGREE OR ANOTHER IN AT LEAST 25 STATES.
IF THIS COMMITTEE HAS A BUDGET, IT WOULD BE WORTHWHILE TO USE SOME MONEY TO HIRE RATE CONSULTANTS TO ADVISE ABOUT HOW THE RATE STRUCTURE CAN BE CHANGED TO GUARANTEE THE CITY'S INCOME, PAY ALL THE NEEDED OBLIGATIONS OF THE UTILITY AND TACKLE CLIMATE EFFICIENCY AND AIR QUALITY ISSUES.
AT THE SAME TIME, THE CITY COUNCIL OF SAN ANTONIO HAS ADOPTED THE PARIS ACCORDS AND HAS ADOPTED A CLIMATE ACTION AND ADAPTATION ORDINANCE, BUT IT HAS NOT TAKEN REAL ACTION.
IT WILL NOT BE ABLE TO DO SO UNLESS IT GETS BETTER CONTROL OF ITS LARGEST ASSET, C P S ENERGY.
EVERYBODY HAS THREE MINUTES, PLEASE.
DO YOU WANT TO GO AHEAD AND YIELD YOUR TIME? YES, I DO.
AND I'M SORRY, SIR, YOUR NAME, YOUR NAME.
IT CANNOT BE SAID THAT THE COUNCIL HAS NO AUTHORITY WITH RESPECT TO C P S ENERGY.
[00:35:01]
WHICH I'VE BECOME PAINFULLY FAMILIAR WITH, MAKE CLEAR THAT THE CITY COUNCIL CAN DIRECTLY SELECT THE BOARD OF C P SS ENERGY AND CAN SET ALL IMPORTANT LONG-TERM AND SHORT-TERM POLICIES OF THE UTILITY AND REQUIRE THAT THEY BE FOLLOWED.AND OF COURSE, COUNCIL HAS RATE SETTING AUTHORITY.
WE CAN CONTINUE TO DRIFT DURING THIS FINAL DECADE BEFORE CLIMATE CHANGE GETS COMPLETELY OUT OF CONTROL.
WE HAVE AN URGENT DUTY TO OURSELVES AND THE WORLD TO SIGNIFICANTLY REDUCE OUR EMISSIONS WHILE PROVIDING RELIABLE ENERGY.
NEXT SPEAKER IS, UH, HULI CANTU.
THE COUNCIL, UH, HERE, UH, INVOLVED WITH THIS UT UH, UTILITY COMMITTEE.
IT'S, UH, IT'S EXCITING TO SEE, UH, MORE ENERGY AND MORE COMMITMENT BEING PUT TO THIS PROCESS AND TO THIS CHALLENGE, UH, OF OVERSEEING OUR LOCAL UTILITIES.
UM, I HAD WRITTEN UP A WHOLE LOT THIS MORNING AND, AND STARTING LAST NIGHT OF WHAT I WANTED TO SAY HERE TODAY.
AND THEN I, I, I BROUGHT MY BAD MASKS, SO I WAS BREATHING ALL INTO MY GLASSES THIS MORNING.
I COULDN'T, UH, DO ANY OF THE FINE EDITS, SO I'M JUST GONNA HIT SOME HIGH POINTS.
UM, AND I THINK IF THERE'S ANY INTEREST, UH, IN TERMS OF ENERGY BURDEN, I'VE GOT MAPPING TOOLS.
I KNOW A LOT OF PEOPLE HAVE DIFFERENT PROGRAMS AND MAPPING TOOLS.
I CAN TELL YOU THAT ON THE NEAR WEST SIDE, CLOSE TO WHERE I LIVED, A LITTLE BIT NORTH FROM WHERE I LIVE, PEOPLE ARE PAYING AT OVER ONE IN $4 THAT THEY TAKE HOME GOES TO C P S AND SAS.
UM, AND, UH, AND I THINK I JUST WANNA SAY, LIKE AT THE TOP OF MY COMMENTS THAT I THINK WE SH HOPEFULLY ALL AGREE THAT IT IS A, A, UM, A MORALLY, UM, UM, UM, KIND OF, UH, IT'S A REPREHENSIBLE PROCESS TO, TO TO SAY POOR PEOPLE WHO CAN'T AFFORD THEIR BILLS SHOULD NOT HAVE ENERGY OR SHOULD NOT HAVE WATER.
WE DON'T SAY THAT TO EACH OTHER OUT LOUD, BUT IN OUR POLICIES, THAT'S WHAT WE DO.
AND PRIOR TO THE WINTER STORM, WE WERE TALKING MORE ABOUT DISCONNECTIONS AND THE HISTORIC PATTERNS AT C P S ENERGY THAT DID CONTINUE INTO THE HEAT OF SUMMER YEAR AFTER YEAR AFTER YEAR, TO THE TUNE OF TENS OF THOUSANDS OF PEOPLE, UH, EVERY YEAR.
UM, SO I HOPE WE CAN RETURN TO THAT.
THERE'S A LOT OF THE NARRATIVE THAT WE HAD BEFORE THE STORM HASN'T BEEN CARRIED FORWARD IN MY OPINION.
UM, THERE'S, UH, AND, AND I HOPE IT CAN WITH THIS COMMITTEE, UH, CAN PICK UP SOME OF THAT.
UH, I HOPE THAT THE RAT CAN PICK UP SOME OF THAT.
UM, AND SO I JUST WANNA SAY BRIEFLY, LOOKING BACK OVER MY FOUR YEARS, TODAY'S MY LAST YEAR WITH THE SIERRA CLUB, GOING BACK INTO MEDIA, UM, AS MY, UH, NUMBER ONE PURSUIT, UH, WITH DECELERATION WITH MY PARTNER MARISOL CORTEZ.
UH, AND IN THE FOUR AND A HALF YEARS I'VE BEEN HERE, UH, WE'VE SEEN THE DEVELOPMENT OF A CLIMATE PLAN, AND WE HAVE A UTILITY AND A C E O OF UTILITY WHO WILL NOT.
UM, AND HOPEFULLY MAYBE SHE CAN SPEAK TO THIS AFTER I, I FINISH, UH, COMMIT TO THE 2030 GOAL AS A UTILITY.
I'VE HEARD PAULA GOLD WILLIAMS SAY MULTIPLE TIMES, YOU KNOW, WE ARE, WE ARE HELD TO ACCOUNT.
WE HAVE TO REDUCE 80% OF OUR GREENHOUSE GUESSES BY 2040, BUT WILL NOT COMMIT TO THE 2030 DEADLINE OF OVER 40% EMISSIONS REDUCTION.
UH, THE FLEXIBLE PATH IS NOT A PLAN.
AND WHAT WE NEED IS A PLAN FOR SPRUCE.
SO, UM, BUT I'VE SEEN IN, IN OTHER, IN OTHER COMMITTEES, LIKE THE CAP IS A GREAT PROJECT, BUT IT'S UNFULFILLED IN SOME FUNDAMENTAL WAYS.
THE, UH, THE RACK IS A GREAT PROJECT, AS, AS, AS COUNCILMAN, UH, BRAVO BROUGHT UP THE COMMUNITY ADVOCATED FOR AND ASKED FOR, AND I'VE BEEN ASKED SINCE THEN, AREN'T YOU HAPPY NOW YOU HAVE IT? UM, WELL, IN APPLICATION, IT LIFTED OFF WITHOUT SOME FIRM FUNDAMENTAL MORAL AGREEMENTS ABOUT WHAT WE'RE TRYING TO ACCOMPLISH, UH, POSITIONALITIES THAT NOW ARE SO DIFFUSE AMONG THE BOARD MEMBERS.
I'M, I'M NOT CONS, I'M NOT CONVINCED WE'RE GONNA ACCOMPLISH VERY MUCH AT ALL.
I'M WORRIED THAT SOME OF THAT HAS FILTERED THROUGH TO THIS POINT.
UH, AND HOPEFULLY THIS COMMITTEE CAN START TO TIGHTEN UP AND SAY, UM, CLIMATE ACTION AND THE MOST VULNERABLE OF OUR COMMUNITIES ARE FIRST.
OKAY, NEXT, UH, DEI BEL MAUS, FOLLOWED BY ANNA KUIA GARCIA DEI.
BEL MAS, YOU HAVE THREE MINUTES.
UM, I, I APPRECIATE, UM, CHAIR WILLIAMS, UH, GIVING Y'ALL AN UPDATE ON THE, UM, ON THE RATE ADVISORY COMMITTEE.
I AM, UH, ONE OF THE RAC MEMBERS, SO I JUST WANNA KIND OF, CAN Y'ALL HEAR ME OKAY? ALL RIGHT.
[00:40:01]
SEE Y'ALL.SO, UM, I WANTED TO GIVE Y'ALL MY PERSPECTIVE OF, OF BEING A RAC MEMBER.
AND I TAKE THIS, UH, ROLE SERIOUSLY AS A RATE PAYER, AS SOMEBODY WHO WORKS, UH, WITH SOME OF THE MOST VULNER VULNERABLE PEOPLE IN, IN THE COMMUNITY.
AND, UM, ESPECIALLY LIKE WORKING WITH AN AQUA FROM SOUTHWEST WORKERS UNION.
THEY, UH, WORK WITH PEOPLE WHO SIMPLY CAN'T PAY BILLS, UM, BECAUSE OF COVID.
UM, THEY HAD A HARD TIME FINANCIALLY EVEN BEFORE COVID.
AND, UM, RIGHT NOW WE'RE IN THIS, I, WHAT I CALL A PERFECT STORM WITH C P SS ENERGY.
UM, WE ARE, OUR NEIGHBORS ARE FACING DISCONNECTIONS STARTING OCTOBER 1ST.
UH, WE HAVE A RATE INCREASE, UH, YOU KNOW, ON THE HORIZON.
AND, UH, LIKE AS A RAC MEMBER, I WORRY ABOUT THE IMPACTS THAT THAT'S, THAT'S GONNA HAVE ON, ON, UH, MY, ON OUR NEIGHBORS.
SO I JUST WANNA SAY THAT I WISH WE COULD HAVE SOME PAUSE ON THIS, AND IT IS POSSIBLE TO, TO TAKE A PAUSE.
UM, IN TERMS OF PUBLIC INPUT OF GIVING THE RAC MEMBERS AN A SUFFICIENT AMOUNT OF TIME TO STUDY WHATEVER RATE PROPOSAL, UH, THERE MIGHT BE.
UM, I, AND I KNOW THAT, UM, REED HAS TRIED TO MANAGE THROUGH ALL THAT, AND I THINK I HAVE A PRETTY GOOD UNDERSTANDING OF, OF RATES.
UM, YOU KNOW, I'VE BEEN IN ON THIS LINE OF WORK FOR A WHILE, BUT, UM, STILL I WOULD LIKE MORE OPPORTUNITY, UH, TO BE ABLE TO STUDY WHATEVER PROPOSAL'S GOING TO COME FORTH.
AND ALTHOUGH WE DON'T HAVE ANY AUTHORITY IN THIS, UH, COMMITTEE, I THINK WE KNOW OUR NEIGHBORS.
AND I THINK THAT WE SHOULD BE ABLE TO GIVE, UH, MEANING IN INPUT TO YOU ALL AS, UH, THE M U C AS AS COUNCIL MEMBERS AND, UM, THAT PEOPLE WOULD TAKE INTO ACCOUNT ALSO RATE PAYER'S PERSPECTIVE, UM, AS WELL.
AND, UM, I JUST WANNA TALK ABOUT ENERGY BURDEN.
WE'RE NOT TALKING ABOUT THAT IN, IN, IN THE RACK, NOT IN IN THE CONTEXT WHERE IT WOULD GIVE PEOPLE A, THE BIG PICTURE ABOUT SAN ANTONIO, IF Y'ALL WANNA GO TO EQUITY MAP.ORG, UM, THIS IS A REPORT FROM THE CLIMATE, UH, CHALLENGE CITIES.
UH, THERE'S 25 CITIES IN THERE AND, UM, SAN ANTONIO, UM, IS ONE OF THE CITIES THAT PARTICIPATES IN THAT CHALLENGE.
SO I JUST WANNA GIVE YOU ALL A QUICK, UM, UH, SOME, SOME QUICK DATA.
ON AVERAGE HOUSEHOLDS NATIONALLY PAY ABOUT 3% OF THEIR INCOME ON ENERGY.
THAT'S GAS AND ELECTRICITY BILLS.
SAN ANTONIO IS CURRENTLY EIGHTH, THE EIGHTH MOST ENERGY BURDEN CITY OUT OF THE, UH, CLIMATE CITY CLIMATE CHALLENGE CITIES ACROSS THE CITY.
SAN ANTONIO'S AVERAGE ENERGY BURDEN IS 4.5% AS OF 20 19, 1 0.3 TIMES THE NATIONAL AVERAGE.
WHEN ENERGY BURDEN IS MAPPED ACROSS THE CITY BY NEIGHBORHOOD, THE DATA SHOWS THAT ENERGY BURDEN DISPROPORTIONATELY IMPACTS RESIDENTS IN THE CENTER PORTION OF THE CITY.
WHERE 2019, THE LEAST 20% GO TO EQUITY.
OKAY? THE LEAST 20% BURDEN, UH, TRACKS IN THE CITY HAVE AN AVERAGE BURDEN, ENERGY BURDEN OF 2.6% BELOW THE NATIONAL AVERAGE.
WHEREAS THE 20% MOST BURDEN TRACKS HAVE AN ENERGY BURDEN OF 8% DEMONSTRATING HIGH ENERGY BURDENS IN THESE NEIGHBORHOODS.
UM, COUNCILWOMAN ROCHA GARCIA, I BELIEVE, UH, SOME OF YOUR, YOUR DISTRICT IS, IS IN THIS MAP.
SO IF YOU WANNA TAKE A LOOK AT THAT, THANK YOU.
SO I APPRECIATE, UH, APPRECIATE Y'ALL GIVING ME THE THE TIME TO TALK.
NEXT IS, UH, AKUA, AND I'M SORRY IF MISPRONOUNCED IT GARCIA, MS. GARCIA ANAQUA GARCIA.
UH, THANK YOU ALL, UH, TO MUNICIPAL UTILITIES COMMITTEE FOR HAVING US.
UM, AND I'M HERE TO SHARE OUR GROWING CONCERNS AROUND DISCONNECTIONS.
UM, I REPRESENT SOUTHWEST WORKERS UNION, AND I ALSO BRING THE VOICES OF 16,000 PEOPLE WHO SIGNED ONTO OUR COMMUNITY PETITION FOR A CHARTER AMENDMENT TO RECALL C P S.
IN 2020, THESE REGISTERED VOTERS ALL SIGNED ON TO OPPOSE UNFAIR AND UNJUST RATE STRUCTURES TO SET A CLOSING DATE FOR THE SPRUCE COAL PLANT AND TO CHANGE THE STRUCTURE, GOVERNANCE AND APPOINTMENTS OR RATHER ELECTIONS FOR THE BOARD OF TRUSTEES.
AT C P S ENERGY, WE, WE ALL KNOW WHAT CAME, I'M SORRY,
WHILE MANY OF US RISKED OUR LIVES TO CONNECT WITH SO MANY VOTERS ON THE GROUND, UH, WHAT C P S DID TO OUR PETITION EFFORTS IS UNJUST AND A TOTAL VIOLATION OF OUR CITY CHARTER AND VOTING RIGHTS.
FOR THOSE OF YOU WHO DON'T KNOW, C P SS ENERGY SPENT MORE THAN $1 MILLION TO TAKE OUR PETITION, UH, TO COURT, UM, TO TAKE OUR PETITION THAT WAS CO-AUTHORED BY COMMUNITY AND DARBY RILEY TO COURT.
AND WE WERE NOT ABLE TO CONTINUE OUR PETITION.
AND NO MATTER WHAT C P S SAYS, THEY DO NOT CARE ABOUT WHAT THE CUSTOMERS AND THE COMMUNITY MEMBERS HAVE TO SAY.
NOW, WHEN IT COMES TO RATE INCREASES AND DISCONNECTIONS, THEY'RE BOTH CONNECTED.
WE REFUTE THE CLAIM THAT NOBODY SUBSIDIZES
[00:45:01]
ANOTHER ENERGY USER.MEREDITH MCGUIRE CAN SPEAK TO THAT AT GREAT LENGTH IF YOU JUST LISTEN TO HER.
AND I WANT TO REMIND EVERYONE THAT OUR COMMUNITY IS STILL IN CRISIS.
THIS IS WHERE EQUITY SHOULD BE CONSIDERED, ESPECIALLY AS DISCONNECTIONS.
DISCONNECTIONS ARE A SIGN OF POVERTY, AND THEY SHOULD, AND POOR PEOPLE, LIKE GREG SAID, SHOULD NOT BE DISCONNECTED THIS YEAR.
WE ARE HEARING FROM THOUSANDS OF C P S ENERGY CUSTOMERS AND VOTERS.
MANY OF YOU ALREADY HAVE THE PRIVILEGE OF RECEIVING POSTCARDS FROM THESE COMMUNITY MEMBERS.
THE STORIES THAT WE ARE HEARING FROM THEM ARE GUT WRENCHING AND HEARTBREAKING.
AND WE ASK THAT YOU DO YOUR BEST TO ADVOCATE FOR THE MOST VULNERABLE.
WE ASK THAT YOU PLEASE DON'T LET C P S ENERGY LEAVE FAMILIES IN THE DARK.
WHAT WE ARE LIVING THROUGH IS A RESULT OF MISMANAGEMENT AT C P S, AND THEY ARE TARGETING THE MOST VULNERABLE COMMUNITIES TO MAKE UP FOR THEIR LOSSES.
WE NEED STRUCTURAL CHANGE, AND SOME OF THESE BAD DECISION MAKERS NEED TO FACE ACCOUNTABILITY AND THEY NEED TO GO.
NEXT SPEAKER IS MARIA ENRIQUEZ.
MARIA ENRIQUE, MARCO, AIA, MARCO AIA.
YOU HAVE THREE MINUTES, MR. KUYA.
LAST SPEAKER IS MEREDITH MCGUIRE, DR.
WANT TO THANK Y'ALL FOR HAVING US HERE AS WELL.
UH, I ALSO WANT TO THANK AWA AND DIDI FOR REALLY LAYING OUT THE ISSUES AND THE REASON WHY WE'RE HERE.
I'M ALSO AN ORGANIZER WITH SOUTHWEST WORKERS UNION.
UH, AS Y'ALL LIKELY KNOW, YOU KNOW, OUR DEMANDS ARE, YOU KNOW, OVER RIGHT NOW THAT C P S ENERGY DOES NOT ENGAGE IN ANY RATE HIKES.
AND THAT C P S ENERGY DOES NOT RESUME, UH, DISCONNECTIONS BEGINNING IN OCTOBER, LIKE DIDI AND ANAQUA HAVE MENTIONED, YOU KNOW, UH, RESIDENTS ARE FACING A PERFECT STORM OF ISSUES, RIGHT? UH, PEOPLE ARE STILL STRUGGLING DURING THE PANDEMIC.
THE C P S UTILITY ASSISTANCE PROCESS HAS LARGELY BEEN INACCESSIBLE TO MANY OF OUR NEIGHBORS IN THE COMMUNITY.
AND UNFORTUNATELY, C P S OUTREACH EFFORTS HAVE BEEN LACKING.
UH, YOU KNOW, THANKFULLY I'M VERY NEW TO IT, BUT THANKFULLY, THEY HAVE BEEN LARGELY INVOLVED IN HELPING PEOPLE GET CONNECTED WITH UTILITY ASSISTANCE IN A WAY THAT WE HAVE NOT SEEN, YOU KNOW, FROM C P SS ENERGY, THE OUTREACH EFFORTS DO NOT INCLUDE BOOTS ON THE GROUND, YOU KNOW, TO MAKE SURE THAT PEOPLE KNOW HOW TO SIGN UP FOR UTILITY ASSISTANCE AND WHERE THEY CAN GO.
FURTHERMORE, I WANT TO SPEAK ABOUT THE, UH, THE RATE INCREASE PROCESS, WHICH HAS LARGELY BEEN INACCESSIBLE, UH, AND HAS LARGELY BEEN ANTI-DEMOCRATIC.
UH, ONE EXAMPLE IS THAT THE SIGNUP WINDOW, UH, TO SPEAK AT THESE, UH, AT, AT C P S ENERGY MEETINGS IS VERY, UH, LIMITED.
YOU KNOW, MANY, UH, SOUTHWEST WORKERS UNION MEMBERS WERE HELPING PEOPLE SIGN UP FOR UTILITY ASSISTANCE ON FRIDAY, UH, YOU KNOW, TO, TO BE ABLE TO GET RELIEF.
AND DURING THAT TIME, THEY MISSED THE SIGNUP WINDOW TO BE ABLE TO SPEAK AT MONDAY'S MEETING.
UH, YOU KNOW, THIS IS A SIGNUP WINDOW THAT LARGELY KEEPS US OUT OF THE PROCESS, UH, NOT JUST US AS ORGANIZERS, BUT WORKING PEOPLE.
UH, I CAN'T REMEMBER WHICH COUNCIL MEMBER MENTIONED IT, BUT SOMEONE SAID THAT OUR CITY IS ONE OF HAVE AND HAVE HAVES AND HAVE NOTS.
UH, YOU KNOW, MANY PEOPLE, I THINK WE NEED TO BE CLEAR ABOUT WHAT THAT BURDEN IS.
MANY PEOPLE, MOSTLY IN SAN ANTONIO, ARE HAVE NOTS THROUGH NO FAULT OF THEIR OWN.
THEY'RE WORKING PEOPLE WHO HAVE FALLEN ON HARD TIMES, ESPECIALLY NOW BECAUSE OF THE PANDEMIC.
AND WE ARE NOT IN, YOU KNOW, WE ARE NOT MAKING DECISIONS THAT INCLUDES OUR VOICES IN THAT PROCESS.
SO I WANT TO THANK THE COUNCIL MEMBERS WHO HAVE STOOD UP, YOU KNOW, TO, TO FIGHT AGAINST THESE RATE INCREASES AND TO MAKE SURE THAT THE COMMUNITY DOES HAVE A LARGER VOICE.
UH, MANY PEOPLE HERE HAVE MENTIONED, UH, YOU KNOW, THE, THE COMMUNITY AS SHAREHOLDERS, YOU KNOW, IN THE DECISION MAKING PROCESS, AND WE GET TREATED AS, OR, OR WE DON'T GET TREATED AS EQUALS.
YOU KNOW, WE ARE LARGELY THE LARGEST SHAREHOLDERS OVER, UH, BUSINESS INTERESTS, BUT OUR VOICES ARE NOT HEARD.
I WANT TO THANK Y'ALL THOUGH, FOR LETTING ME SPEAK.
I WANT TO MAKE SURE THAT WHATEVER PROCESS WE ENGAGE IN IN THE FUTURE INCLUDES MORE OPPORTUNITIES AND BETTER SIGN UP WINDOWS FOR PEOPLE TO TALK ABOUT WHAT THEIR EXPERIENCES HAVE BEEN DEALING WITH C P S ENERGY.
I'VE IDENTIFIED ANOTHER SPEAKER OR TWO THAT, UH, WANTED TO TALK ON A COUPLE OF ISSUES.
I'M TRYING TO BRING ALL THE SPEAKERS TOGETHER AT THE SAME TIME.
RIGHT NOW, WE'LL HEAR FROM DR.
MCGUIRE, AND THEN THERE'S VALERIE MORALES AND VERONICA MORALES IF THEY'RE HERE.
[00:50:03]
OKAY, THANK YOU.MEREDITH MCGUIRE, TRINITY UNIVERSITY, PROFESSOR EMERITA AND CONSERVATION CO-CHAIR OF THE LOCAL SIERRA CLUB.
UM, I HAVE, UM, SPOKEN, I'M SORRY.
UM, SO I, I WANT TO TALK ABOUT TWO ITEMS. THERE'S A WHOLE LOT MORE I COULD TALK ABOUT.
ONE HAS TO DO WITH THE DEFINITION OF RESIDENTIAL RATE PAYERS.
UH, THERE ARE NOT MULTIPLE CLASSES.
BASICALLY, BOTH C P S AND SAWS TEND TO TREAT THE RATE STRUCTURE AS BEING RESIDENTIAL AND EVERYTHING ELSE.
AND THE ISSUE, AND THAT'S A REALLY IMPORTANT THING TO KEEP IN MIND, BECAUSE THE THING THAT THE RESIDENTIAL HOU, UM, RATE PAYERS ARE DEALING WITH ARE THE KINDS OF USES OF, OF WATER OR ENERGY, UH, IN A WAY THAT A FAMILY NORMALLY HAS THEIR DAILY LIFE.
THEY REQUIRE A CERTAIN AMOUNT OF ENERGY, A CERTAIN AMOUNT OF WATER TO STAY ALIVE, TO STAY HEALTHY, TO, UM, YOU KNOW, BE ABLE TO HAVE THE ENERGY TO DO THE THINGS THEY DO IN, IN THEIR WORK.
BUT THEY HAVEN'T GOT CONTROL OVER THEIR TIME SCHEDULES.
SO A LOT OF TIMES, UM, THEY END UP BEING DESCRIBED AS BEING TOO, TOO HEAVY A DEMAND FROM THE RESIDENTIAL RATE PAYERS.
AND A LOT OF THE THING ALSO THEN, THOUGH, IS THAT THERE ARE OTHER, OTHER PLACES WHERE THOSE SAME KINDS OF PRACTICES ARE GOING ON.
SO, FOR EXAMPLE, UM, THINK ABOUT ALL OF THE, UM, BUILDINGS, THE BUSINESSES OR WHAT HAVE YOU, WHERE, UH, PEOPLE ARE DWELLING THE SAME AS PEOPLE IN RESIDENTIAL RATE PAYERS.
BUT THOSE BUSINESSES ARE NOT CHARGED THE SAME PRICE AS, UH, RESIDENTIAL RATE PAYERS.
THEY ARE NOT LOOKED AT AS THE SAME NEEDS.
BUT THE FACT OF THE MATTER IS, WE HAVE A WHOLE LOT OF PLACES IN SAN ANTONIO WHERE PEOPLE ARE USING WATER AND ENERGY, LIKE IN THE SAME WAY, FOR EXAMPLE, HOTELS.
UH, THINK ABOUT THE, UM, THE JAILS AND THE, AND THE COLLEGE DORMITORIES AND SO FORTH.
THOSE ARE ALL PLACES WHERE THE SAME KINDS OF PATTERNS OF USAGE ARE VERY, VERY, VERY SIMILAR TO WHAT'S GOING ON IN RESIDENTIAL RATE PAYERS.
BUT BY, BY STICKING THE RESIDENTIAL RATE PAYERS ALL IN THEIR OWN LITTLE SEPARATE THING, THAT PUTS THEM IN A, A, A GREAT DIS UH, A A BIG PROBLEM.
SO I'M GONNA MOVE A LITTLE BIT FASTER HERE, BUT I WOULD LIKE TO TELL YOU THAT, UH, SO HAS HAD A, A SPEAKER AT THEIR LAST RA, UH, RACK MEETING, UH, DR.
UH, AND HE IS AN EXPERT ON THE ISSUE ABOUT AFFORDABILITY.
HE DID A VERY GOOD PRESENTATION THERE AND I HIGHLY RECOMMEND THAT YOU LOOK AT THE SAS WEBSITE FOR THE PRESENTATIONS TO THE RACK.
UH, MANNY TEODORO WAS SPEAKING ON NUMBER TWO.
UH, I AM ALSO, UM, MANNY TEODORO HAS INFORMED US THAT THE STATE OF OF CALIFORNIA HAS DEVELOPED ITS P U C HAS DEVELOPED A, AN ENTIRE, UH, STATEMENT ABOUT WHAT HAS TO BE DONE TO PROTECT THE RESIDENTIAL RATE PAYERS FROM UNFAIR BURDENS.
AND SO HE HAS HIS TWO, UM, HIS TWO APPROACHES, THE, UH, AFFORDABILITY RATIO AND THE HOURS OF MINIMUM WAGE.
AND THEN THE SOCIOECONOMIC VULNERABILITY INDEX IS EXACTLY THE KIND OF THING THAT YOU CAN SEE LOOKING AT THE CITY'S EQUITY MAPS.
DOC MCGUIRE, COULD YOU SHARE THAT WITH OUR COMMITTEE, FORWARD IT TO OUR OFFICE OR THE CLERK AND WE'LL, WE'LL GET IT TO EVERYBODY.
AND, AND IF YOU'D LIKE TO SPEAK ON THIS ITEM AGAIN, IT WOULD HAVE TO BE AT ANOTHER MEETING TO GET MORE DETAIL.
UH, I WOULD VERY MUCH LIKE TO SPEAK TO INDIVIDUAL MEMBERS TOO, UH, BECAUSE I THINK YOU'LL GET A LITTLE BIT DEEPER INTO THAT THAN IF, IF IT'S JUST A FORMAL PRESENTATION.
UH, AS I SAID, THERE WERE TWO OTHER PEOPLE THAT I MAY HAVE OVERLOOKED.
VALERIE MORALES, AND ALSO I THINK VERONICA MORALES WILL BE RIGHT AFTER HER.
UM, SO I AM A COMMUNITY ORGANIZER.
UM, MY NAME IS VALERIE MORALES.
I'VE BEEN DOING COMMUNITY ORGANIZING FOR THE PAST 20 YEARS OF MY LIFE.
UM,
SO FOR ME, I WANT TO OFFER SOME OF THE COMMUNITY IMPACT THAT WE'VE BEEN HEARING ABOUT.
UM, ALSO TOO, I WANTED TO EMPHASIZE THAT YOU ALL MAY NOT BE VOTING DIRECTLY, EVERYONE
[00:55:01]
HERE, BUT I'M PRETTY SURE EVERYONE HERE HAS SOME INFLUENCE.SO I'M HOPING THESE STORIES WILL STICK WITH YOU.
UM, SO INITIALLY I STARTED HEARING ABOUT EXCESSIVE C P S BILLS AT LEAST 15 YEARS.
WE'RE TALKING ABOUT SENIOR CITIZENS THAT DURING EXTREME WEATHER EVENTS, WHETHER IT'S EXTREME COLD OR EXTREME HEAT CANNOT AFFORD THEIR BILLS.
THEREFORE THEY GO TO THEIR VEHICLES TO WARM UP OR COOL OFF AND THEN GO BACK AND FORTH BECAUSE AGAIN, THEY ARE OVER 60, THEY'RE LIVING ON THEIR SOCIAL SECURITY OR WHATEVER IT IS THAT THEY HAVE FIXED INCOME.
SO THIS IS ABOUT NOT EVEN THAT LONG AGO.
THIS IS BEFORE COVID AND THE PANDEMIC.
WELL, SO NOW WE'RE LOOKING AT WHERE I MAY HAVE HEARD ONE PERSON FROM EVERY 200, 300 HOMES.
I'M LOOKING AT WHOLE BLOCKS OF, OF PEOPLE THAT ARE NEEDING ASSISTANCE, HAVE APPLIED FOR ASSISTANCE, HAVE BEEN DENIED, OR HAVE NO ACCESS TO APPLY FOR ASSISTANCE BECAUSE IT'S ONLINE AND INACCESSIBLE.
UM, AND WE'RE TALKING ABOUT PEOPLE THAT SOME OF THEM ARE FULL, ARE WORKING FULL-TIME.
THE ONE PERSON I'M THINKING OF, UM, HER NAME IS NORMA, AND SHE IS A NEIGHBOR OF MINE.
SHE WAS, IS BATTLING CANCER, HAD IT LAST YEAR, IS IN REMISSION STILL CONTINUING TREATMENTS, HAD TO WORK FULL TIME BECAUSE THERE WAS SUCH A DELAY ON, UH, DISABILITY.
THE DISABILITY PROCESS THAT SHE HAD TO RETURN THEN GOT DENIED FOR A DISABILITY.
SO SHE'S GOING BACK AND FORTH, HAVING TO WORK FULL-TIME TO SUPPORT HER FAMILY, TO PAY HER BILLS, UM, AND ALSO TO SUPPORT HERSELF SO THAT SHE GETS THE CARE THAT SHE NEEDS.
ON TOP OF THAT, BECAUSE OF THE BIG STORM THAT WE HAD IN THE WINTER, SHE ALSO HAD A HUGE PLUMBING ISSUE, WHICH NOW SHE'S STILL GETTING OUT FROM UNDERNEATH.
AND, AND THESE PLUMBING ISSUES THAT I'VE BEEN HEARING ABOUT FROM SEVERAL OF THE COMMUNITY IS VERY REAL.
LIKE WEEKS AGO, SOME OF THEM ARE JUST GETTING WARM WATER INTO THEIR HOMES.
UM, SO I JUST WANTED TO MAKE THIS VERY CLEAR THAT THESE ARE NOT PEOPLE THAT ARE LOUNGING AROUND, REFUSING TO WORK.
THESE ARE PEOPLE THAT ARE WORKING FULL-TIME AND JUST HAD EITHER LOST INCOME BECAUSE OF COVID SHUT DOWN.
LIKE THEY WERE LITERALLY BECAUSE SHE HAD CANCER, DID NOT WANT HER TO GO TO WORK BECAUSE SHE WAS A RISK.
UM, ANOTHER WOMAN, THEY SHUT DOWN AGAIN IN PERSON.
SHE DIDN'T HAVE THE RESOURCES TO WORK FROM HOME.
SO THEN AGAIN, SHE LOST INCOME.
UM, SO THESE ARE VERY REAL PEOPLE THAT ARE FIGHTING TO, TO KEEP THEIR HOMES, TO KEEP THEIR LIGHTS ON, TO KEEP THEIR WATER GOING.
AND, UM, I'M REALLY CONCERNED THAT SOME OF THE PEOPLE THAT ARE, ARE CREATING THESE POLICIES AND FOLLOWING THROUGH ARE LOSING TOUCH.
AND ONCE MORE, I THINK WE HAVE A VERONICA MORALES IS, IS THAT CORRECT? NOT HERE.
THAT THAT INCLUDES THE, UH, THE PUBLIC INPUT.
I WANT TO CLARIFY A COUPLE OF THINGS FOR THE COMMITTEE TOO.
UH, WE HAD SET AS OUR GOAL FOR THIS COMMITTEE TO PUBLISH OUR AGENDA AT LEAST A SEVEN DAYS IN ADVANCE, BUT WE MISSED THAT THIS MEETING.
UH, AND SO, UH, I'M GONNA ASK STAFF TO ENSURE THAT WE ALWAYS HAVE THE AGENDA PUBLISHED SEVEN DAYS IN ADVANCE.
THE OTHER PART OF OUR, OUR ORIGINAL ORGANIZATION WAS SAYING THAT ANYONE WHO WANTED TO SIGN UP TO SPEAK SHOULD SIGN UP 48 HOURS, TWO DAYS BEFORE THE MEETING SO THAT WE'RE PREPARED TO KNOW HOW MANY SPEAKERS WE MAY HAVE OF THAT.
I JUST WANTED TO BRING THAT UP TO THE COMMITTEE.
'CAUSE OBVIOUSLY TODAY WE HAD A LOT OF PEOPLE SIGN UP TODAY, WE DIDN'T HAVE THE WEEK'S NOTICE, AND I CAN UNDERSTAND THAT.
DOES THE COMMITTEE STILL FEEL LIKE THAT IS, UH, AN ADEQUATE PROCESS TO ALLOW PEOPLE TO SIGN UP TO SPEAK, AND THEY WOULD BE SPEAKING ON WHAT'S ON THE AGENDA.
UH, AND I JUST WANTED TO CLARIFY THAT.
SO YES, COUNCILWOMAN, UH, COULD YOU CLARIFY THAT MEANS THEY CAN BE BEGIN SIGNING UP 48 HOURS IN ADVANCE, OR THAT YOU WOULD CLOSE SIGNUPS 48 HOURS? NO, THEY, WE WOULD CLOSE SIGN UP 48 HOURS IN ADVANCE BEFORE THE MEETING SO THEY CAN SIGN UP AS SOON AS THE AGENDA COMES OUT.
UH, I WOULD APPRECIATE HAVING PEOPLE BEING ABLE TO SIGN UP UP UNTIL THE MEETING BEGINS.
UM, I'LL JUST SAY PERSONALLY, I'M OPPOSED TO THAT, BUT, UH, I'D LIKE TO ASK THE REST.
WE, THE CAN HAVE DIFFERENT OPINIONS.
IF WE COULD, YOU KNOW, COME UP WITH A, A CONSENSUS.
I, I DON'T KNOW IF THERE'S SOMEWHERE IN BETWEEN.
I, I THINK 48 HOURS IS, UM, YOU KNOW, PEOPLE MAY MAYBE NEED A LITTLE MORE TIME TO PLAN, BUT UP UNTIL THE, THE, THE MEETING IS GOING TO GIVE, YOU KNOW, IT GIVES US LOGISTICAL PROBLEMS. RIGHT.
SO I WOULD, I DON'T KNOW IF THERE'S A 24 HOUR OF THE MORNING OF OR SOMETHING I WOULD CONSIDER, I'LL, I'LL TAKE ANY OTHER THOUGHTS OR RECOMMENDATIONS FROM THE COMMITTEE? YES.
I THINK THAT WE CAN LOOK AT HOW DOES IT AFFECT THE COMMITTEE, HOW DOES IT AFFECT, UM, CITY STAFF, OR HOW DOES IT, UH, ENABLE THE COMMUNITY TO PARTICIPATE? AND FOR ME, ALLOWING
[01:00:01]
PEOPLE TO SIGN UP UP UNTIL THE MOMENT BEF, YOU KNOW, THE MINUTE BEFORE IS, IS, UH, IS MORE HELPFUL FOR ALLOWING THE COMMUNITY TO PARTICIPATE.SOMETIMES SOMEBODY MAY NOT BE ABLE TO SIGN UP ONLINE, AND SO THEY MAY COME TO THE MEETING AND SIGN UP IN PERSON.
AND SO THAT, YOU KNOW, AND WE'VE DONE THAT IN THE PAST.
WE'VE DONE THAT AT THE CITY IN THE PAST WHERE YOU COME AND YOU SIGN UP ON A PIECE OF PAPER.
AND SO IT'S NOT EVEN DONE DIGITALLY.
AND SO MAYBE SOME OF IT WOULD BE DONE DIGITALLY FROM PEOPLE WHO SIGN UP IN ADVANCE, BUT THEN PEOPLE WHO SHOW UP FIVE MINUTES, 10 MINUTES BEFORE THE MEETING, THAT'S THEIR OPPORTUNITY.
AND SO THEY WOULDN'T, THEY WOULDN'T HAVE TO COME HERE PHYSICALLY TWO DAYS BEFORE, OR THEY MAY NOT HAVE ONLINE ACCESS.
AND SO I, I WOULD STRONGLY SUPPORT LOOKING AT THIS FROM THE PERSPECTIVE OF THE COMMUNITY AND HOW CAN WE ENABLE THEM TO PARTICIPATE MORE.
UM, AND I'M, I'M LEANING TOWARDS WHAT COUNCILMAN SANDOVAL SAID, AND, AND I AGREE.
AND HOWEVER, CHAIRING MEETINGS ALSO, IT'S DIFFICULT TO TRY TO FIGURE OUT HOW LONG ARE WE GONNA STAY HERE? IS THIS AGENDA REALLY LONG? UM, SO I DON'T KNOW IF THE, UM, MAYBE THE, IT COULD BE EVEN AN HOUR BEFORE I JUST TURNED OVER TO THE CITY ATTORNEY'S OFFICE AND ASKED, SHOULDN'T WE HAVE A PROCESS FOR THIS? I DON'T THINK THAT IT SHOULD BE DETERMINED PER COMMITTEE.
I THINK THAT IT SHOULD BE ACROSS THE BOARD.
SO IF AT CITY COUNCIL, THEY'RE ABLE TO SIGN UP, YOU KNOW, UNTIL A CERTAIN TIME, UM, I THINK THAT'S A GREATER CONVERSATION THAT WE SHOULD PROBABLY HAVE.
BECAUSE I, I, I, I DON'T, I, I DON'T WANNA BE STUCK IN A, IN A CHAIR POSITION AND CHOOSE.
I DON'T WANT YOU STUCK IN A CHAIR POSITION.
AND COUNCILMAN AND COUNCILWOMAN ALL HAVE, UH, DIFFERENT CHAIRS THAT THEY, OR DIFFERENT COMMITTEES THAT THEY CHAIR.
AND SO I JUST LIKE A GREATER UNIFORMITY.
BUT KNOWING THAT WE NEED TO TAKE INTO CONSIDERATION THE FACT THAT A LOT OF MY RESIDENTS CAN'T SIGN UP ONLINE.
A LOT OF MY RESIDENTS UNFORTUNATELY, CAN'T LEAVE AND COME DURING THE WORKDAY.
WE SHOULD BE HAVING THESE MEETINGS IN THE EVENING IF WE WANTED THEM TO PARTICIPATE.
BUT THAT'S ANOTHER CONVERSATION.
UM, SO, UH, I GUESS WHAT I'M SAYING IS, I, I'M LEANING TOWARD FOR NOW, BECAUSE WE DON'T HAVE A SYSTEM, WE SHOULD PROBABLY ALLOW IT TO CONTINUE THE WAY CITY COUNCIL MEETINGS ARE MANAGED.
I REALLY, UH, DON'T BELIEVE WE SHOULD DEPART FROM, UH, THE PRACTICE AT CITY COUNCIL FOR THE TIME BEING.
UM, AND WE, WE READ THEM ON THE RECORD, OR THEY'RE ENTERED INTO, YOU KNOW, THE, THE PUBLIC DOMAIN FOR EVERYBODY TO READ.
AND ONE OF MY OTHER COMMITTEES TOO, JUST A SUGGESTION, BUT I DO AGREE THAT THERE SHOULD BE A UNIFORM PROCESS.
WELL, I'D LIKE TO JUST SAY, BECAUSE THE COMPLEXITY OF A LOT OF THESE THINGS WE'RE LOOKING AT, I HATE TO SEE US, FOR EXAMPLE, NOT DO SOME OF WHAT WE HAVE ON OUR AGENDA BECAUSE WE HAVE AN EXCESSIVE NUMBER OF PEOPLE SHOW UP TO TALK.
AND I HOPEFULLY WE WILL PUT THAT AGENDA OUT A WEEK AHEAD OF TIME.
SO THE COMMUNITY SHOULD BE ABLE TO IDENTIFY AREAS OF QUESTIONS OR INTEREST THEY CAN WRITE IN AND THEY CAN'T CALL IN.
YOU KNOW, THEY CAN CALL IN THEIR COMMENTS OF THEIR REMARKS.
UM, I'D LIKE TO AT LEAST TRY AND GIVE US, UH, SINCE THESE MEETINGS ARE AT 10 O'CLOCK IN THE MORNING, UH, YOU KNOW, IF WE SET UP, YOU KNOW, THE DAY BEFORE, UH, BY FIVE O'CLOCK THE NIGHT BEFORE, UH, AND, AND TRY, I'D LIKE TO AT LEAST TRY THAT FOR A WHILE.
UH, YOU KNOW, I DON'T THINK YOU'RE GONNA HAVE THAT MANY PEOPLE, YOU KNOW, FEEL LIKE THEY'RE MISSING OUT IF THEY'VE GOT SEVEN DAYS NOTICE.
AND, YOU KNOW, WE JUST ASK 'EM TO LET US KNOW THE DAY BEFORE.
I JUST HATE TO SEE SOME OF THIS GET PUT OFF BECAUSE WE DON'T HAVE TIME TO CONTINUE.
'CAUSE COUNCIL MEMBERS HAVE OTHER OBLIGATIONS AND OTHER MEETINGS THAT KIND OF BACKUP.
THIS MEETING'S ON WEDNESDAY TODAY, BUT THE NEXT TIME IT'S GONNA BE ON A TUESDAY.
THERE ARE OTHER COMMITTEE MEMBERS COMMITTEE MEETINGS ON TUESDAYS.
AND SO I'D LIKE TO ASK IF WE CAN GO AHEAD AND MAKE THAT TIME BY FIVE O'CLOCK THE DAY BEFORE THE MEETING ON MONDAY.
AND LET'S SEE IF WE FEEL LIKE WE'RE, WE'RE FINDING PEOPLE WHO FEEL LIKE THEY'RE NOT ALLOWED TO PARTICIPATE.
IS THAT A REASONABLE COMPROMISE FOR THIS NEXT MEETING? CAN YOU EXPLAIN HOW PEOPLE WITHOUT ACCESS TO THE INTERNET WILL SIGN UP? THEY CALL IN.
THERE'S A NUMBER, UH, ON OUR WEBSITE.
AND, AND THAT'S THE OTHER THING.
WE'RE PUTTING OUT OUR OWN WEBSITE THAT WILL GIVE AN AGENDA WHAT WAS DISCUSSED AT THE LAST MEETING.
HAVE A NUMBER TO CALL IN TO SIGN UP.
HOW CLOSE ARE WE TO HAVING THAT SET UP? UH, GOOD MORNING CHAIR AND COMMITTEE MEMBERS.
I THINK PROBABLY AT THE NEXT MEETING WE CAN PROBABLY SHOW YOU A PROTOTYPE, BUT WE'RE WORKING ON, NOT JUST FOR THIS COMMITTEE, BUT FOR ALL COUNCIL COMMITTEES.
SO WE'RE TRYING TO LEVERAGE THE NEW PRIME GOV, UH, AGENDA SYSTEM, WHICH
[01:05:01]
HAS, YOU KNOW, THE AGENDA BRIEFING MEMOS WITH ALL THE SUPPORTING DOCUMENTATION ATTACHED TO THEM.WHAT WE DON'T WANNA DO IS COMPLETELY DUPLICATE ALL OF THAT AGAIN.
UM, SO WE'RE TRYING TO LEVERAGE THAT WEBSITE, BUT THEN HAVE A LOCATION FOR EACH COMMITTEE WHERE DOCUMENTS, PAST MEETING, DISCUSSIONS OF MINUTES AND THINGS LIKE THAT ARE, ARE KEPT.
UM, SO I THINK WE'RE, WE'RE, WE'RE GETTING PRETTY CLOSE TO HAVING A, A, A, A PROTOTYPE LAID OUT THAT WE COULD SHOW YOU AND THEN LAUNCH SHORTLY THEREAFTER.
IF, SINCE THAT WON'T BE READY TILL THE NEXT MEETING, THEN I'LL, I'LL AGREE.
LET'S LET PEOPLE JUST SHOW UP, UH, AN HOUR BEFORE THE MEETING NEXT TIME AND SIGN UP.
UH, AND THEN IF WE'RE ABLE TO GET THIS PROCESS GOING WHERE IT'S PUBLIC, UH, ACCESS TO SIGN UP BY PHONE OR BY EMAIL OR ANYTHING IN THE FUTURE, THEN MAYBE WE'LL LOOK AT THE DAY BEFORE.
UH, I JUST DON'T WANT US TO NOT BE ABLE TO GET TO THE REST OF THE BUSINESS THAT WE HAVE, UH, WHEN WE HAVE AN EXORBITANT NUMBER OF PEOPLE WANTING TO COME.
AND ALSO, AS WE'VE SAID, WE WANT ALL OF THE DISCUSSIONS TO BE RELATIVE TO THE AGENDA, AND THAT WAY WE MOVE FORWARD.
SO THEN NEXT MEETING, WE'LL ALLOW PEOPLE TO COME IN AND SIGN UP BY NINE O'CLOCK AN HOUR BEFORE THE MEETING, AND THEN WE'LL HAVE A BETTER IDEA.
'CAUSE I WAS KIND OF FUMBLING THROUGH TRYING TO FIGURE OUT, YOU KNOW, WHO HAD TALKED, WHO HADN'T, WHICH ITEM.
AND I WOULD LIKE TO SUGGEST WE LET THEM ALL TALK AT ONE TIME AT THE BEGINNING OF THE MEETING, AND WE GET THEIR INPUT ON ITEMS. IT MAY COME UP LATER, RATHER THAN INTERRUPTING THE PRESENTATION TO HAVE DIFFERENT SPEAKERS AT DIFFERENT TIMES.
IS THERE ANY DISAGREEMENT ABOUT THAT? NO, NO DISAGREEMENT.
THANK YOU CHAIR, FOR THOSE IMPROVEMENTS.
I JUST WANTED TO ADD THOUGH, THAT I ALSO SUPPORT, UH, COUNCILMAN, UH, RICHARD GARCIA, UM, IDEA OF, UH, EVENING MEETINGS.
I THINK THAT WOULD IMPROVE ACCESSIBILITY.
'CAUSE I THINK A LOT OF PEOPLE WHO COME TO COMMITTEE MEETINGS ARE EITHER PAID TO WORK ON AN ISSUE THAT THAT'S COVERED BY THAT COMMITTEE OR THEY'RE RETIRED.
AND SO A LOT OF PEOPLE WHO ARE AT WORK ARE NOT A ABLE TO PARTICIPATE IN THE PROCESS.
SO I, I WOULD SUPPORT THAT AT ANY COMMITTEE.
WE'LL TAKE THAT UNDER ADVISEMENT AND SEE IF WE CAN FIND SOME TIMES THAT WE CAN DO THAT.
UM, SORRY FOR THE DELAY FOR THE OTHER MEMBERS, UH, WHO ARE PRESENTING.
BUT AT THIS TIME, WE'RE READY TO GO ON TO, UH, ITEMS B AND C UNDER THE RATE ADVISORY COMMITTEE.
AND THAT IS C P S ENERGY WILL PROVIDE AN OVERVIEW OF THE RATES ADVISORY PROCESS, FOLLOWED BY CITY STAFF WILL PROVIDE A BRIEFING ON THE PROCESS FOR REVIEWING RATE REQUESTS AND PROPOSED TIMELINES FOR CONSIDERATIONS FOR THE C P S ENERGY RATE REQUESTS TO THE CITY COUNCIL.
SO, UH, WHO'S PREPARED TO GO AHEAD AND DO THIS? OKAY.
IF WE CAN HAVE THIS PRESENTATION BROUGHT UP, IT WAS THE ONE THAT THEY BROUGHT UP WHEN REED CAME UP.
UH, MR. CHAIRMAN, UH, COUNCIL MEMBERS, THANK YOU FOR HAVING US, UH, AGAIN TODAY.
AS ALWAYS, UH, I WANT TO START BY THANKING, UH, CHAIR REED WILLIAMS, ELOISA, PORTILLO MORALES, AND ALL THE 21 MEMBERS OF IRAQ.
UH, THEY'RE DOING A FANTASTIC JOB AT THE, UH, CHARGE THAT THEY WERE GIVEN FROM OUR BOARD.
UH, I WANNA START OFF OUR CONVERSATION TODAY, UH, JUST WITH KIND OF A LEVEL SET, UH, ON THE ROLE STAFF PLAYS.
I, I'M THE EXECUTIVE SPONSOR OF BOTH THE RAC AND THE C A C, UH, YOU KNOW, WHO PROVIDE VALUABLE INPUT TO BOTH STAFF AND, UH, ULTIMATELY OUR BOARD.
AND I CAN TELL YOU THAT OUR GOAL, UH, AS WE PUT THE RAC TOGETHER AND, UH, AND GOT THEM GOING, IS REALLY TO FACILITATE, YOU KNOW, OUR, OUR GOAL IS NOT TO, UM, YOU KNOW, TO, TO, UH, INFLUENCE THEIR THINKING, UH, ABOUT, YOU KNOW, WHAT OUR, YOU KNOW, RATES SHOULD LOOK LIKE OR ANY OF THAT.
UH, OUR GOAL IS TO JUST, UH, PROVIDE A BASELINE OF EDUCATIONAL MATERIAL FOR THEM TO BE ABLE TO MAKE THOUGHTFUL RECOMMENDATIONS TO OUR BOARD.
SO, UH, WE'VE GOT A LOT OF FOLKS THAT HAVE PUT IN A LOT OF WORK, UH, ON CITY STAFF, I MEAN, ON, ON C P S ENERGY STAFF, UH, TO TRY TO PREPARE THE MATERIALS.
AND, AND, UH, I THINK BY AND LARGE, UH, YOU KNOW, WE'VE DONE A REALLY GOOD JOB OVERALL, AND THE COMMITTEE HAS DONE A GREAT JOB OF, UH, OF, OF, OF DOING WHAT THEY NEED TO DO WITH THAT MATERIAL.
WE ALSO DO HAVE BRATTLE, UH, THAT IS A, A, YOU KNOW, AWARD-WINNING, WELL-RENOWNED, YOU KNOW, RATE, UH, UH, CONSULTING FIRM, UH, THAT IS ON STAFF, UH, TO HELP ANSWER WHATEVER QUESTIONS THAT, UH, THE RAC HAS, UH, FOR THEM.
SO, UH, YOU KNOW, WE, WE FACILITATE THAT CONVERSATION, UH, AND I EXPECT RAC, YOU KNOW, THE, UH, UH, BRATTLE TO COME BACK WHEN, UH, NECESSARY TO ANSWER QUESTIONS THAT THE, THAT THE COMMITTEE HAS.
UH, AND IT'S A, YOU KNOW, AGAIN, THESE ARE TWO YEAR TERMS. SO, UH, WHILE CERTAINLY THEY'VE PIVOTED TO LOOK AT, UH,
[01:10:01]
THE INFORMATION RELATIVE TO A POTENTIAL, UH, RATE REQUEST, UH, THEY'RE LOOKING AT, YOU KNOW, UH, UH, UH, ALTERNATE RATE STRUCTURES.THEY'RE, YOU KNOW, THEY'VE GOT A GENERATION PLANNING, UH, COMMITTEE.
AND SO THEY'VE, YOU KNOW, UH, CHAIR WILLIAMS HAS DONE A GREAT JOB OF GETTING THEM ORGANIZED AND, AND, AND, AND GETTING THEM GOING.
SO, UH, SO I FEEL LIKE THE RAC IS, IS, IS IN A GOOD PLACE TO PROVIDE THOUGHTFUL FEEDBACK TO OUR BOARD.
UM, THEY WILL GET THAT OPPORTUNITY TO DO SO.
THE BOARD, UH, YESTERDAY OR MONDAY IN A, IN, IN A PRESENTATION THAT I PROVIDED, UH, ON HOW WE INTEND TO ENGAGE OUR STAKEHOLDERS, UH, MADE IT VERY CLEAR THEY EXPECT THE RACK, UH, TO BE ONE OF THOSE CRITICAL, YOU KNOW, PIECES OF INPUT INTO THAT PROCESS.
SO, SO JUST TO LEVEL SET WITH, UH, WHERE OUR BOARD IS, OUR, OUR BOARD'S GIVEN ME
UH, AND LIKEWISE, THE C A C HAS BEEN A, A LONG, LONG TIME RESOURCE, UH, FOR OUR, UH, BUSINESS.
UH, YOU KNOW, WE'VE GOT A COUPLE OF OF SLOTS OPEN.
WE JUST, UH, GOT A, A NEW APPOINTEE FOR DISTRICT NINE, UH, MR. CHAIRMAN.
SO, SO, SO THE RAC AND THE C A C VERY CLEARLY HAVE, UH, FORMALIZED, UH, OPPORTUNITIES TO, TO INFORM, UH, OUR BOARD.
THIS NEXT SLIDE REALLY IS A, A, AN OVERVIEW, A GENERAL OVERVIEW OF WHAT THE PROCESS LOOKS, IS GONNA LOOK LIKE, UH, AS WE, UH, ENGAGE OUR COMMUNITY IN A CONVERSATION ABOUT, UH, WHERE WE ARE WITH RESPECT TO OUR FINANCES.
OUR JOB AT C P S ENERGY IS TO PROVIDE SERVICE.
UM, THERE, YOU KNOW, THE, THE COSTS, UH, THAT FLOW THROUGH A BILL, UH, ARE INTENDED TO PRO TO, TO FUND THE, THE REQUIREMENT TO PROVIDE THAT SERVICE.
AND, YOU KNOW, WHEN THERE'S A GAP, YOU KNOW, IT'S OUR RESPONSIBILITY TO COME FORWARD, UH, AND HAVE THAT CONVERSATION, UH, WITH OUR COMMUNITY.
SO, UH, THE, AS I SAID, THE RAC AND THE C A C WILL VERY MUCH, UH, HAVE AN OPPORTUNITY TO, TO WEIGH IN AND, AND THEIR PROCESSES FOR THEM TO DO THAT.
UH, WE ARE BEGINNING A VERY ROBUST COMMUNITY OUTREACH CAMPAIGN, UH, THAT, UH, WILL, WILL, WILL REALLY, UH, UH, FLOW THROUGH THE ENTIRETY, UH, OF THIS PROCESS.
UH, AND THEN THERE ARE SOME VERY, UH, SPECIFIC TOUCH POINTS WITH CITY COUNCIL WHERE WE COME IN AND EXPLAIN, UH, WHERE WE ARE.
BEN, I THINK, WE'LL, WE WILL PROVIDE MORE DETAILS ON WHAT THAT PROCESS LOOKS LIKE.
JUST AS AN INTERESTING ASIDE, UM, YOU KNOW, THERE'S THE, THE ONLY FOLKS WHO, WHO WERE AROUND THE LAST TIME THIS HAPPENED, UH, EIGHT YEARS AGO, IS, UH, YOU KNOW, IS, IS ONE OF OUR TRUSTEES.
MR. KELLY, UH, THE MAYOR, YOU KNOW, WAS ON, UH, COUNCIL AS A DISTRICT EIGHT REPRESENTATIVE AT THE TIME, MYSELF AND A, AND A FEW OF US, UH, AT C P S ENERGY.
SO, YOU KNOW, THEY'RE, WE JUST HAVEN'T BEEN THROUGH A PROCESS.
AND SO IT'S GONNA FEEL VERY NEW TO THE COMMUNITY BECAUSE, UH, YOU KNOW, FOR C P S ENERGY, ANYTIME WE COME IN FOR A RATE REQUEST, AGAIN, WE, WE RECOGNIZE IT'S A, IT'S A BIG, IT'S A BIG ASK, IT'S A BIG DEAL.
UH, AND SO I JUST WANT TO REASSURE, UH, THE, THE COMMITTEE THAT OUR INTENTION IS TO ENGAGE OUR COMMUNITY WHEREVER THEY ARE, UH, IN A CONVERSATION ABOUT THIS PROCESS.
THIS IS JUST A GENERAL OVERVIEW OF WHAT OUR, UH, ENGAGEMENT SUMMARY LOOKS LIKE.
UH, WE ARE, WE'RE, YOU KNOW, WE'VE GOT A LIST OF OVER 200 COMMUNITY ORGANIZATIONS, UH, AND WE, WE WILL REACH OUT TO EVERY ONE OF THOSE.
UH, OF COURSE, UH, WE WILL HAVE CONVERSATIONS WITH OUR CUSTOMERS, UH, DIRECTLY, YOU KNOW, OUR, OUR, OUR LARGE COMMERCIAL CUSTOMERS, OUR SMALL BUSINESSES, WE HAVE PROCESSES TO REACH OUT TO THEM, UH, COUNCILS, SUBURBAN CITIES, THE COUNTY.
UH, AND SO WE'VE GOT A LIST OF THE WHO THAT IS VERY ROBUST, UH, AND A PROCESS FOR KEEPING TRACK OF, UH, WHAT, YOU KNOW, WHEN WE'VE MET WITH THEM, WHAT THEIR FEEDBACK WAS, THAT WE WILL SHARE WHAT WITH OUR BOARD.
SO OUR ENTIRE ENGAGEMENT PROCESS IS INTENDED TO PROVIDE FEEDBACK THAT WE RECEIVED BACK TO OUR BOARD SO THEY CAN, YOU KNOW, MAKE THE BEST DECISION POSSIBLE.
AND SO, I JUST WANTED TO FLASH A VERY SIMPLE, UH, YOU KNOW, UH, UH, PROGRAM THAT, THAT WE'VE PUT TOGETHER THAT WE THINK, UH, WILL DO THE JOB THAT THE COMMUNITY EXPECTS US TO DO, UH, REACHING OUT.
WE WILL MEET WITH ANY ORGANIZATION THAT YOU ASK US TO.
SO IF YOU'VE GOT ORGANIZATIONS IN YOUR OWN DISTRICTS THAT YOU'D LIKE US TO SIT DOWN AND MEET WITH, UH, THE ENTIRETY OF OUR LEADERSHIP TEAM WILL BE PREPPED TO GO OUT AND, AND SPEAK, UH, TO THE QUESTIONS THAT OUR COMMUNITY HAS.
AND SO, UH, YOU KNOW, WE'RE, WE'RE READY TO ENGAGE IN THAT PROCESS.
UH, THAT IS ALL I HAVE FOR YOU, MR. CHAIRMAN.
I WILL ANSWER ANY QUESTIONS YOU MAY HAVE.
UH, LEMME ASK YOU, UH, A QUESTION.
AND, AND I DON'T MEAN TO OFFEND, BUT I THINK THAT ANY ORGANIZATION IS ALWAYS LOOKING OUT FOR ITS BEST INTEREST FROM ITS PERSPECTIVE.
AND WHAT YOU'VE SAID IS, YOU KNOW, WE'RE JUST LOOKING AT THIS FROM THE POINT OF VIEW OF THE COMMUNITY.
YOU CAN HONESTLY SAY THAT C P SS DOESN'T HAVE THEIR OWN IDEA AND WHERE THEY'D LIKE TO SEE THIS GO, AND THEY'RE NOT GONNA PUSH IT THAT WAY, SIR, WE, OUR INTENTION IS TO PRESENT THE FACTS BASED ON, YOU KNOW, OUR, HOW WE RUN OUR BUSINESS.
I THINK, UH, AS YOU'VE HEARD, YOU KNOW, HERE TODAY, EVERYBODY HAS OPINIONS ON THINGS THAT WE CAN DO BETTER, UH, AS DO WE.
AND SO, UH, I, I EXPECT THE FEEDBACK THAT WE RECEIVE, UH, TO, TO, YOU KNOW, TO KIND OF FOLLOW
[01:15:01]
THAT PATTERN.AND, AND, UH, YOU KNOW, I, I'M INTERESTED IN, WE ARE INTERESTED AS AN ORGANIZATION, UH, AND THE FEEDBACK THAT CUSTOMERS HAVE TO GIVE US, UH, CERTAINLY WE HAVE AN OPINION OF WHAT WE THINK WILL HELP US DO THE JOB THAT THE COMMUNITY, UH, IS ASKING US TO DO.
IT'S OUR RESPONSIBILITY TO KEEP THE LIGHTS ON, TO KEEP THE GAS FLOWING, UH, AND, UH, YOU KNOW, AND, AND $12 BILLION IN ASSETS, YOU KNOW, UH, IT'S A BIG, BIG, YOU KNOW, ENTERPRISE THAT WE'RE RESPONSIBLE FOR.
SO, UH, WE'VE GOT A FIDUCIARY RESPONSIBILITY TO PRESENT, YOU KNOW, THOSE FACTS TO THE COUNCIL.
AND, UM, YOU KNOW WHAT, WHATEVER THE OUTCOME ULTIMATELY IS, UM, WE WILL, YOU KNOW, WE'LL, WE'LL TAKE THAT AND, AND DO THE BEST WE CAN WITH IT.
THE LAST PAGE SHOWED A LOT OF ENGAGEMENT OPPORTUNITIES.
AND I'D, I'D LIKE, UH, C P S TO KEEP US UPDATED ON THE NUMBER OF THOSE YOU ACTUALLY GET ACCOMPLISHED.
AND IF YOU'RE GETTING FEEDBACK, THE COUNCIL NEEDS TO HEAR THAT WHEN IT MAKES ITS DECISION, SO YOU CAN LET THIS COMMITTEE KNOW, TOO.
UH, ANY OTHER COMMITTEE MEMBERS? YES, COUNCILWOMAN, ROCHA GARCIA.
AND THANK YOU, RUDY, FOR BEING HERE.
AND I ALWAYS PUBLICLY THANK YOU BECAUSE YOU'RE ALWAYS AVAILABLE TO ANSWER MY QUESTIONS, SO THANK YOU FOR THAT.
UM, MY QUESTION IS SPECIFICALLY ABOUT THE PUBLIC INPUT PROCESS.
HOW ELSE, UH, OTHER THAN, THAN THIS, LIKE, SO THERE, IS THERE OTHER FORMS OF COMMUNICATION THAT MAYBE WEREN'T LISTED THAT WE CAN HELP YOU SPREAD THE WORD THROUGH AND, UM, WELL, YES, THAT'S, YES.
HOWEVER WE CAN, YOU KNOW, WE'LL DEVELOP A SURVEY FOR CUSTOMERS WHERE THEY CAN GO OUT AND FILL IT OUT.
WE'LL, YOU KNOW, WE'LL BE AT ALL THE COMMUNITY EVENTS THAT WE NORMALLY ARE.
UH, AND SO, YOU KNOW, WE'LL HAVE PAPER COPIES FOR FOLKS TO SHOW UP TO THOSE.
WE, WE CAN GIVE THE COUNCIL OFFICES PAPER COPIES AS, AS YOU'RE GOING OUT AND ABOUT TO GET FEEDBACK.
UH, AND ALL YOU GOTTA DO IS GET THAT BACK TO OUR LOCAL GOVERNMENT CONTACTS AND, UH, PROVIDE THAT FEEDBACK.
YOU CAN CALL US, YOU CAN SEND US AN EMAIL, GO TO OUR WEBSITE.
ALL THE INFORMATION THAT WE'RE GONNA BE PRESENTING, UH, WILL BE OUT THERE.
I MEAN, ALL THE RACK MATERIALS THAT WE'VE EVER PRESENTED TO THE RACK ARE OUT THERE FOR PUBLIC CONSUMPTION, AS ARE VIDEOS, UH, OF THEIR MEETINGS.
UH, LIKEWISE, UH, WITH OUR BOARD MEETINGS, UH, AND, AND WE DO, WE ARE POSTING THE MINUTES FOR THE C A C AS WELL.
UH, SO, UM, YOU KNOW, WE'RE GONNA TRY TO, YOU KNOW, TO, TO ALLOW FOR, YOU KNOW, AS MANY AVENUES FOR FEEDBACK AS POSSIBLE.
AND IF WE'RE MISSING THE MARK ON SOMETHING AND THERE'S SOMETHING WE'RE NOT DOING THAT YOU THINK WE SHOULD BE, UH, ALL YOU HAVE TO DO IS LET US KNOW.
UM, I WAS LOOKING SPECIFICALLY AT CALL-IN INFORMATION.
AND THEN ALSO, HOW ARE PEOPLE AWARE? SO IS IT PRINTED ON THE BILLS, UM, SOMEWHERE THAT SAYS, CALL IN FOR INFORMATION, OR QUESTIONS ON RATE INCREASES, ET CETERA? SO HOW DO YOU GET THAT? SO THE PEOPLE THAT I REPRESENT, THAT'S THE ONLY COMMUNICATION THEY GET SOMETIMES IN THEIR BILL.
THERE'S PROBABLY A COUPLE OF DIFFERENT WAYS WE CAN DO THAT.
NORMALLY, I MEAN, ALL OF OUR ENERGY ADVISORS THAT, YOU KNOW, YOU'RE GONNA CALL IN FOR, FOR YOUR QUESTIONS ANYWAY, WILL BE PREPARED TO ANSWER QUESTIONS ABOUT OUR RATE REQUEST, GIVE YOU, UH, INFORMATION ABOUT WHEN AN UPCOMING COMMUNITY EVENT MIGHT BE, THAT KIND OF INFORMATION.
SO YOU CAN CALL 2 1 0 3 5 3 22 22 AND GET YOUR QUESTIONS ANSWERED THERE.
UH, WE'LL ALSO BE, UH, ESTABLISHING A PHONE NUMBER THAT WE'LL BE MONITORING SO THAT IF YOU JUST WANT TO CALL AND PROVIDE FEEDBACK, YOU DON'T REALLY WANT TO TALK TO ANYBODY.
UH, YOU KNOW, I, I DO ALL OF MY, YOU KNOW, TRANSACTIONS ONLINE.
I, I TRY TO AVOID HAVING TO CALL, UH, IF I CAN, THERE'LL BE A PROCESS TO MAKE IT AS EASY AS WE CAN, UH, FOR, FOR OUR CUSTOMERS TO REACH US.
AND I GUESS THAT'S WHAT I WAS LOOKING FOR, LIKE FOR PHONE NUMBER AND HOW WE'RE GONNA GET THAT PHONE NUMBER DISTRIBUTED SO THAT PEOPLE COULD CALL IN.
AND THAT'S WHY I WAS WONDERING YES, MA'AM.
IF YOU COULD JUST ADD IT ON, ON THE BILL, WHICH EVERYBODY GETS.
AND THEN QUICK QUESTION, 'CAUSE I KNOW MY TIME'S ALMOST UP.
WHAT'S YOUR CLOSING TIME FOR PUBLIC COMMENT? SO, UH, WE'VE GOT A WINDOW IN THE MORNINGS, I THINK WE'VE EXPANDED IT.
UH, BUT, BUT TYPICALLY OUR DEADLINE, YOU CAN REGISTER UP, UH, UH, BETWEEN, IT'S LIKE NINE AND ONE O'CLOCK IN THE, IN THE AFTERNOON ON FRIDAYS BEFORE THE BOARD MEETINGS.
I'LL GET YOU THE EXACT NUMBER, BUT THERE IS A WINDOW, UM, EXCUSE ME, SEVEN TO ONE.
SO IT'S ACTUALLY BIGGER THAN I THOUGHT IT WAS.
UH, SEVEN, SEVEN O'CLOCK IN THE MORNING TO ONE O'CLOCK IN THE AFTERNOON.
BUT THAT'S TWO DAYS BEFORE THE BOARD MEETING OR MORE.
OUR BOARD MEETINGS ARE NUM NORMALLY ON MONDAY.
UH, SO THAT'S THE FRIDAY, IT'S A FRIDAY BEFORE THE BOARD MEETING.
THOSE ARE ALL MY QUESTIONS FOR NOW.
UM, I'M, I'M LOOKING FOR SOME ASSURANCE OR SOME ACCOUNTABILITY THAT, THAT THE HARD WORK THAT THE, THE C A C AND THE R A C ARE DOING.
I MEAN, THEY VOLUNTEER THEIR TIME.
THEY, THEY, YES, THEY TAKE TIME TO COME HERE TODAY, THINGS LIKE THAT.
WHAT ASSURANCE DO WE HAVE, OR WHAT RESULT CAN WE SHOW THEM THAT, THAT WE ARE LISTENING, THAT THEY, THAT THEIR, THAT THEIR WORDS ARE BEING HEATED, THAT THEIR RECOMMENDATIONS ARE BEING TRULY CONSIDERED? WHAT, HOW CAN WE SHOW THEM THAT? OR HOW CAN C P S SHOW THEM THAT COUNCILWOMAN THAT, THAT'S A REALLY GOOD QUESTION.
I, I MEAN, I THINK ULTIMATELY, YOU KNOW, THE, THE, THE WAY I UNDERSTAND IT FROM, FROM, AS THE, THE CHAIR AND I HAVE DISCUSSED IT, YOU KNOW, THE, THE RAC WILL PROVIDE SOME TYPE OF WRITTEN REPORT TO THE BOARD, UH, WITH
[01:20:01]
THEIR, YOU KNOW, OPINIONS OF THE VARIOUS ELEMENTS THAT THEY WANNA WEIGH IN ON.UH, AND THE BOARD WILL, YOU KNOW, CONSIDER THAT AS PART OF THEIR, UH, DILIGENCE PROCESS.
I, YOU KNOW, I DO BELIEVE THAT WE'LL HAVE OPPORTUNITIES TO GO BACK TO THE BOARD ON A REGULAR BASIS AND SHARE THE FEEDBACK THAT WE'RE GETTING.
UM, YOU KNOW, WE, WE'VE HAD, UH, A COUPLE OF OUR BOARD MEMBERS WHO'VE, UH, SHOWN AN INTEREST IN THAT.
AND SO, YOU KNOW, WE'RE GONNA TRY TO, UH, BE AS OPEN AND HONEST AND, YOU KNOW, TRANSPARENT ABOUT THE FEEDBACK THAT WE'RE GETTING.
UH, AND, YOU KNOW, BOARD MEMBERS ULTIMATELY HAVE TO MAKE A CALL BASED ON THAT INFORMATION, BUT, BUT THEY WILL SEE WHAT WE'RE, WHAT, YOU KNOW, WHAT TYPE OF FEEDBACK WE'RE GETTING FROM OUR CUSTOMERS.
I, I'D LIKE TO, IF POSSIBLE, YOU KNOW, WITH THE, OF COURSE, APPROVAL OF THE CHAIR, MAYBE YOU SEE A, A REPORT BACK ON THE RECOMMENDATIONS GIVEN BY C A C R A C AND THEN THE END RESULT AND, AND KIND OF HOW MANY OF THEM MADE IT THROUGH THE, THE PROCESS, JUST AS, SO WE CAN WE, CAN WE HAVE SOMETHING SHOWING, YOU KNOW, DATA SHOWING YES, MA'AM.
THAT THESE RECOMMENDATIONS, UM, IN THEIR, IN THEIR ORIGINAL FORM MADE IT? YES, MA'AM.
SO IF YOU KNOW, OF COURSE, I'LL GO THROUGH THE CHAIR.
WE'LL CERTAINLY ADVISE OUR BOARD OF THAT REQUEST.
THANK YOU FOR, FOR SOMEONE WHO, UM, WHO LOVES PUBLIC PARTICIPATION AND HAS BEEN CHAMPIONING IT SINCE I GOT ON COUNCIL.
EVERYTHING I'M HEARING FROM MY, ALMOST EVERYTHING I'M HEARING FROM MY COLLEAGUES IS MUSIC TO MY EARS.
SO I WANNA THANK ALL OF YOU FOR, FOR YOUR GREAT IDEAS THAT YOU'RE, THAT YOU'RE COMING UP WITH.
UM, I DO HAVE A COMMENT ABOUT TRANSPARENCY AND OPENNESS.
AND THIS IS ALSO FOR MY, FOR MY COUNCIL MEMBERS.
THEY'RE NOT MY COUNCIL MEMBERS.
UM, SO, UH, I'M MY COUNCIL MEMBER,
UH, A WHILE BACK, UH, SOME, SOME OF US HAD REQUESTED TO THE C P S BOARD THAT THE C A C, THE CITIZENS ADVISORY COMMITTEE BE, UH, MEET OPEN TO MEET OPENLY TO THE PUBLIC AND TO HIS CREDIT CHAIR, STEEN DID POSE THAT QUESTION TO, UH, TO HIS BODY AND ALSO TO THE MEMBERS OF THE C A C.
UH, HE WAS, UH, HE WAS VERY CONSIDERATE OF WHAT THEY WOULD, UH, WHAT THE MEMBERS OF THE C A C WOULD WANT.
UH, HE THOUGHT PERHAPS IF THEY SIGNED UP FOR THIS AND THEY DIDN'T KNOW IT WAS GOING TO BE A PUBLIC MEETING, THEY MIGHT NOT BE OKAY WITH CONTINUING TO, TO SERVE.
UM, SO AT, AT THE END OF THE DAY, THE, I BELIEVE THOSE MEETINGS ARE STILL, UH, NOT OPEN TO THE PUBLIC RIGHT NOW.
IS THAT CORRECT? THAT'S, THAT'S CORRECT, MA'AM.
WHEN WE DO POST THE AGENDAS IN THE MINUTES AND THAT KIND OF INFORMATION, BUT THEY'RE STILL CLOSED TO THE PUBLIC.
SO MY, UH, SO MY RECOMMENDATION, AND I'LL DO THIS, UH, OPENLY TO, TO MY COLLEAGUES, IS IF THAT'S A DISCUSSION YOU WOULD BE INTERESTED IN HAVING WITH YOUR APPOINTEE, UH, THE, MY NEW APPOINTEE, THAT WAS, UH, BASICALLY AN UNDERSTANDING THAT WE HAD THAT IF THERE WAS EVER THE OPPORTUNITY TO MAKE THAT MEETING PUBLIC, THAT SHE WOULD BE, UM, SHE WAS, SHE WAS COOL WITH IT AS SO TO SPEAK.
SO, UM, ANYWAY, JUST WANTED TO PUT THAT OUT THERE FOR, FOR YOUR CONSIDERATION.
I, UM, I DO ABSOLUTELY BELIEVE ANY, ANY MEETINGS WITH, UH, THAT ARE MEANT TO SERVE THE PUBLIC SHOULD BE OPEN TO THE PUBLIC.
IS THAT AN ITEM YOU'D LIKE TO HAVE US PUT ON OUR AGENDA IN THE FUTURE AND HAVE A MORE THOROUGH DISCUSSION WITH, UH, C P S ENERGY? OH, SURE.
THANK YOU VERY MUCH, CHAIRMAN.
ANY OTHER COUNCIL MEMBERS HAVE A QUESTION? OKAY.
IF NOT, THE NEXT PART IS GOING TO BE A DISCUSSION BY CITY STAFF ON HOW THE RATE PROCESS WORKS.
COMING TO COUNCIL, UH, CHAIRMAN, COMMITTEE MEMBERS, I'LL, I'LL JUST MAKE A BRIEF PRESENTATION AND TRY TO SUMMARIZE, UM, SOME OF ACTUALLY WHAT, UH, CHAIRMAN WILLIAMS TALKED A LITTLE BIT ABOUT AS WELL.
UH, IN TERMS OF CITY COUNCIL OVERSIGHT, WE MENTIONED AT THE LAST MEETING, WE KIND OF WENT OVER THAT, UM, THE MANAGEMENT OPERATION OF THE UTILITIES ACTUALLY OUTLINED IN THE BOND INDENTURES.
UM, BUT IN THERE, IT PROVIDES FOR CITY COUNCIL OVERSIGHT IN FOUR DIFFERENT AREAS.
IT INCLUDES RATES AND CHARGES, UH, ISSUANCE OF DEBT CONDEMNATION, AND THE BOARD APPOINTMENT PROCESS.
AND AGAIN, ALL OF THAT IS CONTAINED WITHIN THE INDENTURES, WHICH, WHICH KIND OF SERVE LIKE THE ARTICLES, INCORPORATION OR BYLAWS FOR THE UTILITIES.
UM, IN TERMS OF THE RATE APPROVAL PROCESS, UM, IT WILL BEGIN WITH, UH, FORMALLY BEGIN WITH THE INITIATION OF A RATE REQUEST FROM, OR STARTING THE PROCESS BY EITHER THE SAWS BOARD OR THE C P S BOARD.
IN THIS CASE, WE'RE TALKING ABOUT THE C P S BOARD.
UM, PRIOR TO THAT PROCESS, BEGINNING FORMALLY, WE AS STAFF ENGAGE WITH THE STAFF OF THE UTILITY, AND WE START TO REVIEW INFORMATION.
SO AS THEY START TO DEVELOP A RATE CASE, WE, WE TRY TO GET INVOLVED IN THAT PROCESS SO THAT WE GET A GOOD UNDERSTANDING OF WHAT IS DRIVING THE NEED FOR, UH, A POTENTIAL RATE INCREASE.
AND, UM, WE'RE WORKING WITH THEM THROUGHOUT THAT REVIEW PROCESS.
SO WE TRY TO, AND THEN WE GET TO A POINT WHERE, UH, AND I'LL OUTLINE IN A SECOND HOW THE PROCESS WOULD WORK, BUT ESSENTIALLY THE BOARD AT SOME POINT WOULD THEN
[01:25:01]
FORWARD A FORMAL RECOMMENDATION TO THE COUNCIL FOR CONSIDERATION.OUR ROLE IS OUTLINED UNDER THE CHARTER.
UH, WE HAVE A POSITION, UH, SUPERVISOR PUBLIC UTILITIES, THAT HAS BEEN MERGED WITH MY POSITION FOR A NUMBER OF YEARS.
I'VE SERVED IN THAT ROLE FOR, FOR QUITE SOME TIME.
UM, AND OUR CHARGE IS TO PROVIDE RECOMMENDATIONS TO THE COUNCIL ON THESE AREAS OF OVERSIGHT.
UM, WE HAVE A DIVISION WITHIN THE FINANCE DEPARTMENT.
SO SITTING RIGHT BEHIND ME IS OUR DEPUTY CHIEF FINANCIAL OFFICER, TROY ELLIOT.
AND NEXT TO HIM IS, UH, RUSSELL HUFF, WHO IS OUR ASSISTANT DIRECTOR OVER PUBLIC UTILITY.
SO WE'VE GOT A DIVISION AND A STAFF THAT, UM, ON A DAY-TO-DAY BASIS INTERFACE WITH UTILITIES, BUT THEY BECOME HEAVILY ENGAGED ANYTIME THERE IS A RATE CASE COMING FORWARD TO THE COUNCIL.
AND SO, AS WE LOOK AT ALL OF THE INFORMATION, UM, PROVIDED BY THE UTILITY FROM A BUSINESS CASE RATE, CASE PERSPECTIVE, WE'LL PROVIDE A FORMAL RECOMMENDATION TO THE COUNCIL.
SO IF WE GO TO THE NEXT SLIDE, I ADD A COUPLE OF THINGS HERE IN TERMS OF, OF WHAT WE LOOK AT.
IT IS SIMILAR TO SOME OF WHAT YOU SAW AS WE GO THROUGH OUR BUDGET PROCESS.
WE'RE LOOKING AT THEIR OPERATIONS AND MAINTENANCE BUDGET.
WE'RE LOOKING AT, YOU KNOW, WHAT'S CAUSING THAT TO INCREASE OR CHANGE, WHAT'S THE STAFFING LEVELS LOOK LIKE, UH, WHAT KIND OF COMPENSATION BENEFITS.
UM, WE'RE TRYING TO GET AN IDEA OF WHAT IS DRIVING, UH, ANY COST INCREASES THAT WE'RE SEEING THERE, UH, AS WELL AS OTHER ISSUES THAT MAY BE, MAY BE COMING UP.
WE LOOK AT ALSO HEAVILY THE CAPITAL PLAN.
YOU KNOW, UTILITIES ARE HEAVILY CAPITAL INTENSIVE.
SO WE WANT TO UNDERSTAND WHAT IS CHANGING IN THOSE CAPITAL PLANS.
WHAT ARE THEY FOCUSING, UH, ON? WHAT ARE THE LARGER AREAS OF INVESTMENT THAT THEY'RE FOCUSING ON OVER, YOU KNOW, THE NEAR TERM, PROBABLY THE NEXT FIVE TO 10 YEARS, WHAT'S IN THAT PLAN? WHAT COULD BE DRIVING THAT RATE, RATE CASE? SO THOSE ARE A COUPLE OF BIG PIECES.
UH, WE'LL THEN TURN AROUND AND LOOK AT THE REVENUE SIDE.
SO WHEN WE'RE LOOKING AT THE REVENUE SIDE, WE'RE TRYING TO GET AN IDEA ON, ON THE SALES FORECAST, EVERYTHING FROM WHAT ARE THE GROWTH ASSUMPTIONS FOR THE UTILITY? HOW MANY CUSTOMERS ARE WE ADDING? WHAT KINDS OF CUSTOMERS ARE WE ADDING? UH, WHAT'S THE USE PER BILL LOOK LIKE, UM, AND HOW THAT IS ALL ROLLING INTO ULTIMATELY A, A REVENUE CALCULATION, RIGHT? AND THEN WE LOOK AT HOW, UM, THE FLOW OF FUNDS UNDER THE BOND INDENTURE, UM, OUTLINES HOW DOLLARS OR, OR FLOW INTO EACH UTILITY THEY GO TO OPERATIONS AND MAINTENANCE, TYPICALLY FIRST DEBT SERVICE.
AND THEN THERE'S A CONTINUING FLOW.
WE'RE LOOKING AT THOSE MODELS OVER A LONG PERIOD OF TIME.
AND, AND THESE OP, THESE OPERATING BUDGETS AND CAPITAL BUDGETS ALL FUNNEL INTO THAT RATE MODEL.
AND IT KIND OF GETS BACK TO WHAT CHAIRMAN WILLIAMS TALKED ABOUT EARLIER.
ONCE YOU START TO SEE WHAT THE COST DRIVERS ARE, UH, WHAT ALL THOSE ELEMENTS ARE.
UH, IF YOU PULL, IF YOU DON'T HAVE A RATE INCREASE, YOU START TO SEE A DELTA PRESUMABLY OCCUR, AND THEN YOU, YOU'RE ABLE TO LOOK AT THAT MUCH CLOSER AND DETERMINE WHAT IS ACTUALLY DRIVING THAT.
AND THEN WE ALSO LOOK AT FINANCING ASSUMPTIONS, SOME KEY FINANCIAL METRICS.
UM, WE'LL LOOK AT, UM, UH, HOW THEY'RE FINANCING CAPITAL, HOW MUCH CASH THEY'RE USING VERSUS HOW MUCH DEBT THEY'RE BORROWING, WHAT THAT'S DOING TO THE METRICS AND THE FINANCIAL, UH, POSITION OF THE UTILITY OVER TIME.
AND THEN WE'RE ALSO LOOKING AT, THERE'S BEEN SOME DISCUSSION ON IT THIS MORNING IN THE CASE OF C P S, THE COST ALLOCATION STUDY, SO THE 2017 STUDY IN TERMS OF HOW IT ALLOCATES COST TO DIFFERENT RATE CLASSES.
SO WE WILL LOOK AT THAT AS WELL.
SO WE'LL REVIEW ALL OF THAT INFORMATION AND COME IN WITH A FORMAL RECOMMENDATION TO THE COUNCIL THAT WILL PRESENT TO YOU ALL THAT'LL BE DONE IN THE FORM OF A FORMAL PRESENTATION AS PART OF OUR RATE PROCESS.
WE'LL ALSO PROVIDE YOU A WRITTEN REPORT, UH, UH, AS PART OF OUR, UH, DILIGENCE ON THE RATE CASE.
IF WE GO TO THE NEXT SLIDE, AND I REALLY, I'M GONNA CAVEAT THIS, AND I'M PROBABLY GONNA SAY IT A COUPLE TIMES.
I WANNA BE REALLY CLEAR, THIS IS NOT THE TIMELINE.
THIS IS A TIMELINE THAT WE HAVE WORKED WITH C P S STAFF ON THAT LOOKS AT, IF WE WERE TO TRY TO GET A RATE CASE IN FRONT OF THE COUNCIL, UH, WITH A VOTE BEFORE THE END OF THEIR FISCAL YEAR, WHICH IS JANUARY 31ST, IN THIS CASE OF 2022, AND WE HAVE A NUMBER OF STEPS WE HAVE TO GO THROUGH, WHAT WOULD THAT LOOK LIKE? AND SO THIS CASE ROUGHLY BEGINS IN MID-NOVEMBER AND ENDS IN MID-JANUARY.
AND, UH, I'M GONNA HIGHLIGHT A COUPLE OF THINGS HERE.
ONE, UH, C P S JUST HAD A BOARD MEETING ON ON THE 27TH THIS PAST MONDAY.
THEY'VE TALKED ABOUT, UH, THE INFORMATION THAT RUDY GARZA JUST WENT OVER IN TERMS OF HOW THEY'RE GONNA ENGAGE, UH, AND GET INPUT FROM THE COMMUNITY AND DIFFERENT STAKEHOLDERS AS, AS THEY TALKED ABOUT THE DIFFERENT ELEMENTS THAT ARE DRIVING THIS RATE CASE.
UM, THE BOARD, UM, IT'LL BE ULTIMATELY UP TO THEM WHEN THEY WANT TO FORMALLY LAUNCH THIS PROCESS OR IF THEY WANT TO FORMALLY LAUNCH THIS PROCESS.
WHEN WE WERE PUTTING THIS TIMELINE TOGETHER, AGAIN, TRYING TO GET TO A MID-JANUARY, UH, COUNCIL CONSIDERATION, OUR PREMISE WAS THE BOARD WOULD PROBABLY NEED TO ACT SOMEWHERE AROUND, UH, LATE OCTOBER, EARLY NOVEMBER FOR US TO MEET THAT KIND OF TIMELINE.
[01:30:01]
I JUST HAPPENED TO PICK THEIR, UH, REGULARLY SCHEDULED BOARD MEETING ON THE 25TH OF OCTOBER.AGAIN, THAT WILL BE COMPLETELY WITHIN THEIR PREROGATIVE TO DECIDE HOW THEY WANT TO MOVE OR IF THEY WANT TO MOVE IT FORWARD AT THAT POINT.
UM, ON OUR SIDE, AND WE HAVE FOLLOWED THIS PROCESS FOR A NUMBER OF YEARS, AND ACTUALLY CHAIRMAN WILLIAMS, WHEN HE WAS A COUNCIL MEMBER, PROPOSED THIS, UH, WE HAD A RATE CASE.
I DON'T REMEMBER WHICH UTILITY WAS COMING FORWARD, BUT WE SET IT UP TO LOOK AT A COUPLE OF THINGS.
AND SO YOU'LL SEE HERE ON THE 10TH OF NOVEMBER, UM, A BRIEFING FROM THE UTILITY ON REVENUE REQUIREMENTS.
SO THEY WOULD COME IN, THIS WOULD BE A BRIEFING FROM C P SS ON WHAT ARE THE THINGS, THE BUDGETARY THINGS, THE THINGS THAT THEY'RE EXPERIENCING THAT ARE CAUSING THIS REQUIREMENT FOR A RATE INCREASE THAT WOULD THEN BE FOLLOWED BY A SECOND COUNCIL WORK SESSION.
WE GOT IT SCHEDULED HERE AT DECEMBER 1ST.
THAT WOULD TALK ABOUT RATE DESIGN.
SO ONCE YOU'VE ESTABLISHED FROM THEIR STANDPOINT, HERE'S, HERE'S WHAT I'M SHORT, THIS IS THE REVENUE I NEED TO RECOVER, HOW DOES IT THEN START TO IMPACT DIFFERENT CLASSES OF CUSTOMERS? DO THEY WANNA PROPOSE ANY CHANGES TO THE EXISTING RATE DESIGN? THE THIRD STEP WOULD BE THEN ON DECEMBER 8TH, WHICH WOULD BE A RECOMMENDATION OR A REPORT FROM THE PUBLIC UTILITIES OFFICE.
THIS IS WHERE CITY STAFF WOULD MAKE A RECOMMENDATION ON THE RATE CASE.
AND ON THE BUSINESS CASE, UH, TO YOU ALL, WE WOULD DO THAT IN A FORMAL PRESENTATION.
WE WOULD ALSO USE THAT WORK SESSION AS AN OPPORTUNITY TO FOLLOW UP ON ITEMS THAT HAVE COME UP FROM THE PRIOR TWO WORK SESSIONS.
SO IF THERE ARE OPEN THINGS, UH, QUESTIONS THAT YOU ALL HAD WITH C P S, WE WOULD THEN USE THIS MEETING TO TRY TO ANSWER THOSE QUESTIONS AND TRY TO RESPOND TO ALL OF THAT, UH, INFORMATION.
WE WOULD THEN HAVE A, UM, ITEM POSTED IN MID-JANUARY WHERE THE CITY COUNCIL WOULD CONSIDER, UH, APPROVAL OF THE RATE CASE.
AND AGAIN, JUST REEMPHASIZING, THIS IS JUST A DRAFT PROPOSED TIMELINE.
IT IS, IT WAS, UH, DEVELOPED AGAIN, US WORKING WITH C P S STAFF SAYING, LOOK, IF WE NEEDED TO MEET AN END OF C P S FISCAL YEAR TIMELINE AND MEET OUR STEPS, UM, THIS IS WHAT THAT CALENDAR WOULD LOOK LIKE.
AND EVEN THE DATES FOR THE COUNCIL WORK SESSIONS, I WANNA LET YOU KNOW, COULD CHANGE.
UM, WE HAVE A NUMBER OF BIG POLICY ISSUES WE WANT TO BE BRINGING TO YOU ALL AS WELL OVER THE COURSE OF THE FALL.
SO WE ARE EVEN LOOKING AT, WE COULD EVEN LOOK AT, UM, POSSIBLY SOME SPECIAL WORK SESSIONS WITH THE COUNCIL.
SO WE'RE GONNA BE PROBABLY MOVING SOME THINGS AROUND, BUT THIS GIVES YOU A GENERAL IDEA OF, UH, THE TIMELINE AND WHAT WE WOULD BE FOLLOWING IF THAT C P S UH, RATE CASE MAKES IT OVER HERE, UH, IN THE FALL.
SO THIS ISN'T THE ACTUAL TIMELINE, BUT THIS IS SOMETHING THAT MIGHT DEVELOP, UH, WITH THE COLLABORATION OF BOTH CP S'S BOARD AND, AND, UH, OUR OFFICE AND THE COUNCIL MOVING FORWARD, RIGHT? THAT IS CORRECT.
UH, YOU KNOW, TO ME THIS IS MUCH MORE ENCOURAGING THAN WHAT I WAS HEARING A FEW WEEKS AGO WITH BY NOVEMBER THEY WANTED TO BRING UP SOME KIND OF A RATE INCREASE.
AND SO ANYWAY, WE'LL SEE HOW THIS WORKS OUT.
UM, NOW LET ME ASK YOU ONE OTHER THING.
YOU'VE WORKED ON RATE INCREASES BEFORE, AND I KNOW THERE HAVEN'T BEEN A LOT OF THEM, AND THEY'RE NOT VERY FREQUENT, BUT HAS THERE EVER BEEN ONE THAT'S BROUGHT, BEEN BROUGHT TO YOUR DEPARTMENT THAT YOU'VE RECOMMENDED AGAINST OR CHANGING? TYPICALLY CHAIR, AS WE TALK ABOUT, UM, THE PROCESS, OUR HOPE AND OUR GOAL IS THAT, UM, AS WE WORK WITH THE STAFF OF THE UTILITIES AND, UM, BEFORE THAT FORMAL REQUEST IS MADE TO THE COUNCIL, HOPEFULLY WE'VE, WE'VE BEEN ABLE TO WORK AND MAKE THOSE ADJUSTMENTS THROUGHOUT THAT PERIOD OF TIME SO THAT BY THE TIME IT GETS HERE, WE'RE ALIGNED ON WHAT THAT RECOMMENDATION LOOKS LIKE.
BUT YES, WE DO PROPOSE CHANGES THROUGHOUT THE PROCESS, THINGS THAT WE SEE THAT WE THINK MAYBE SHOULD BE DONE DIFFERENTLY, UM, THINGS THAT, THAT WE'RE UNSURE ABOUT OR THINGS THAT WE MAY QUESTION, THERE'LL BE THINGS THAT WE'RE GONNA HIGHLIGHT FOR YOU ALL THAT ARE GONNA BE, UM, LESS, LESS ABOUT THE RATE CASE.
THERE'LL BE SOME THINGS THAT WE'LL SEE THAT ARE GONNA BE, UH, MORE POLICY CONVERSATIONS THAT WE WANNA MAKE SURE YOU'RE AWARE OF, UM, THINGS THAT WE WANNA MAKE SURE YOU'RE AWARE ARE IN THOSE RATE CASES.
UH, YES, COUNCILMAN, UH, ROCHA GARCIA.
AND, UM, COUNCILMAN COURAGE ASKED MY, ONE OF MY QUESTIONS ABOUT THE UTILITY RATE INCREASES, IF YOU'VE EVER NOT RECOMMENDED ONE.
BUT, UM, IS COUNCIL OBLIGATED TO HEAR A RATE INCREASE JUST BECAUSE, UH, A UTILITY ASKS FOR ONE? I DON'T, I DON'T REMEMBER SEEING ANY OF THAT IN THE CHARTER.
SO WHERE, WHERE, WHERE WOULD I FIND SOMETHING LIKE THAT? I DON'T, I DON'T BELIEVE THAT'S IN THE CHARTER.
AND I'LL ASK TROY TO HELP ME ON, ON THE LEGAL SIDE.
I'LL TELL YOU FROM A PRACTICAL SIDE, JUST BECAUSE WHEN YOU LOOK AT THE CITY AND THE OWNERSHIP OF BOTH THE UTILITIES, THEY'RE, THEY'RE HUGELY IMPORTANT ASSETS TO THE COMMUNITY.
[01:35:02]
I THINK FROM A PRACTICAL STANDPOINT, IF THE UTILITY LAW FORWARDS A FORMAL RATE REQUEST TO THE CITY, I WOULD THINK AT A MINIMUM WE WOULD HAVE TO HAVE A CONVERSATION ABOUT THAT.WHETHER WE PROCEEDED ON THE TIMELINE OR NOT WOULD CERTAINLY BE COUNCIL'S PREROGATIVE IN TERMS OF, OF HOW WE WOULD DO THAT.
BUT I THINK IF WE ACTUALLY GOT A REQUEST FROM UTILITIES SAID, WE NEED TO RAISE RATES, WE WOULD NEED TO HAVE A, A, A WORK SESSION, A DISCUSSION ABOUT WHAT THE IMPLICATIONS ARE IF WE DON'T MOVE FORWARD WITH AT LEAST THE PROCESS.
AND I GUESS THAT WAS MY POINT.
SO, UM, IS THERE A SYSTEM IN PLACE THAT SAYS EVERY SO OFTEN WE ARE LOOKING AT THIS OR, UM, AND, AND I DON'T THINK THAT THERE IS, RIGHT? SO IT, IT SOUNDS LIKE IT, IT'S, IT'S EVERY TIME THAT A UTILITY WOULD, WOULD PROPOSE.
IS THERE SOMETHING, UH, IN PLACE THAT SAYS EVERY TIME WE HAVE, UH, 500,000 NEW CUSTOMERS, WE'RE LOOKING AT THIS, OR I, I'M JUST TRYING TO SEE WHAT OTHER CITIES ARE DOING AS WELL? NO, SO THIS IS LARGELY DRIVEN BY THE UTILITY.
SO THEY, UM, OBVIOUSLY ARE REVIEWING THEIR, UH, BUDGETS, THEIR FINANCIAL POSITION, WHAT'S HAPPENING TO THEM, YOU KNOW, AS THEY MONITOR THAT, UM, THEY WILL, OF COURSE INFORM US.
AND AT SOME POINT, IF THEY FEEL LIKE THEY NEED TO GET AN ADDITIONAL RATE CASE THAT THEY'VE GOT A BUSINESS CASE TO DO THAT, THEY'RE GONNA COME FORWARD TO THE COUNCIL AND ASK FOR THAT RATE RELIEF.
THANK YOU COUNCILMAN, COUNCILMAN
I DON'T WANNA TAKE UP TOO MUCH TIME, BUT I'D, I'D LIKE TO REQUEST A PRESENTATION IN THE FUTURE REGARDING DECOUPLING.
YOU HEARD, UH, ONE OF OUR SPEAKERS MENTION IT, AND I THINK I HAD, UH, I KNOW BEN AND I HAVE A, A PENDING CONVERSATION ABOUT IT, BUT I DO RECALL MENTIONING IT TO, UM, AT, AT THE COUNCIL A FEW YEARS AGO.
SO, SO ONE OF THE BENEFITS OF, OF DECOUPLING IS THAT IT GIVES THE RATE PAYERS SOME ASSURANCE OF HOW MUCH THEY'RE GOING TO PAY.
SO WE WOULDN'T HAVE THESE SPIKES IN THE SUMMER, BUT IT ALSO GIVES THE UTILITY SOME ASSURANCE OF HOW MUCH, UH, REVENUE IS GOING TO COME IN, WHICH, UM, LIKE BEN SAID, YOU KNOW, THESE ARE BIG ASSETS FOR US AND AS A CITY ORGANIZATION, WE DEPEND HEAVILY ON THOSE REVENUE SOURCES.
SO OF COURSE, WE WANT SOME STABILITY, I THINK, LONG TERM ON THEM, BUT I DUNNO THE DETAILS ABOUT WHETHER OR NOT THAT'S POSSIBLE IN TEXAS.
WHAT ARE THE IMPLICATIONS? SO IN THE FUTURE, IF THAT'S A POSSIBILITY OF, UH, LIKE TO EXPLORE THAT.
ANY OTHER QUESTIONS FROM ANY OF THE COUNCIL MEMBERS? COMMITTEE MEMBERS? OKAY.
[2. Briefing by the San Antonio Water System and CPS Energy on Plans for Addressing Past Due Customer Receivables [Ben Gorzell Jr., Chief Financial Officer; Troy Elliott, Deputy Chief Financial Officer]: A) SAWS Staff will provide a briefing on plans for addressing the past due customer receivables including the recently approved COVID19 Relief Plan B) CPS Energy Staff will provide a briefing on plans for addressing the past due customer receivables include plans for resuming disconnections 3. Briefing by the San Antonio Water System and CPS Energy on the status of implementing the recommendations from the Committee on Emergency Preparedness’ Report [Ben Gorzell Jr., B) CPS Energy staff will provide an overview of the rates advisory process C) City Staff will provide a briefing on the process for reviewing rate requests and a proposed timeline for consideration of a CPS Energy rate request 2. Briefing by the San Antonio Water System and CPS Energy on Plans for Addressing Past Due Customer Receivables [Ben Gorzell Jr., Chief Financial Officer; Troy Elliott, Deputy Chief Financial Officer:]
ON TO ITEM NUMBER TWO, BELIEVE IT OR NOT.ITEM NUMBER TWO IS A BRIEFING FROM THE SAN ANTONIO WATER SYSTEM AND C P S ENERGY ON PLANS FOR ADDRESSING PAST DUE CUSTOMER RECEIVABLES.
UH, FIRST WE'LL GO AHEAD AND HEAR FROM SAWS, AND WE'LL FOLLOW THAT UP WITH, UH, UH, A REPORT FROM C P S ENERGY.
AND AGAIN, WE'RE TALKING ABOUT HOW ARE THE UTILITIES ADDRESSING THE PAST DUE CUSTOMER RECEIVABLES.
THANK YOU, UH, MR. POE, APPRECIATE YOU BEING HERE TO TALK WITH US TODAY.
GOOD MORNING, UH, CHAIRMAN, COURAGE COUNCIL MEMBERS, FIRST OF ALL, UH, THANK YOU AND THANK THE COUNCIL.
THE, ALL THE WHOLE COUNCILS, INCLUDING THE MAYOR FOR CREATING THIS COMMITTEE.
IT REALLY ALLOWS, UH, SAS, UH, TO COME IN AND EXPLAIN TO THIS COMMITTEE, UH, AND THE PUBLIC, UH, OF WHAT WE ARE DOING AND HOW WE'RE DOING IT.
AND, AND FRANKLY, TO, TO ME, THAT THAT'S, UH, GREAT BECAUSE WE ARE, UH, IN MY OPINION, DOING A VERY GOOD JOB AT SAWS ON ALL KINDS OF THINGS.
UM, UH, EVERYTHING FROM THE MOST BASIC OF WATER AND WASTEWATER TO THE OTHER THINGS THAT ARE VERY IMPORTANT TO OUR COMMUNITY AND TO THE, UH, PUBLIC SPEAKERS, UH, THE GENERAL PUBLIC THAT CAME IN AND SPOKE, ALL OF THEIR CONCERNS, UH, WE ARE ADDRESSING, WE'VE HEARD THEM BEFORE, AND ALTHOUGH THEY WERE KIND OF CONCENTRATED TOWARDS C P S ENERGY, IT AFFECTS US TOO.
AND WE UNDERSTAND THOSE ISSUES ALSO.
AND MARY WILL BE TALKING ABOUT THAT ALSO.
AND I DO WANT TO, UM, ALSO TALK TO YOU, UH, CHAIRMAN, COURAGE ABOUT A QUESTION YOU HAD REGARDING BEN.
AND I'M GONNA KIND OF, UH, CHAIRMAN COURAGE.
UH, YOU ASKED BEN A QUESTION ABOUT OUR RATE INCREASES AND, UH, EITHER, FORTUNATELY, UNFORTUNATELY, WE SAW US HAVE A GOOD HISTORY ABOUT COMING BEFORE COUNCIL ON RATE INCREASES.
AND I WILL TELL YOU, WE DON'T COME, UH, IN FRONT OF BEN, UM, WITH A WISHLIST.
UM, AND IT'S NOT JUST, UH, THE TWO OR THREE MONTHS BEFORE THE RATE INCREASE, IT'S THE ENTIRE BUDGET CYCLE BEFORE THAT, THAT BEN LOOKS AT, AND THAT WE HAVE TO ESSENTIALLY PROVE OURSELVES, UH, TO MOUNT BEN.
WE HAVE TO CLIMB MOUNT BEN BEFORE WE EVEN GET TO THE COUNCIL.
I THINK HE KNOWS OUR BUDGET JUST AS WELL AS HE KNOWS, UH, YOUR OWN BUDGET, YOUR OWN CITY BUDGET.
UM, BUT I WANNA TALK TO YOU, UH, WE'RE GONNA TALK TO YOU SPECIFICALLY ABOUT, ABOUT OUR DISCONNECT PROGRAM.
UH, MARY BAILEY, OUR VICE PRESIDENT OF
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CUSTOMER SERVICE AND STRATEGIC INITIATIVES, IT'S GONNA PRESENT THAT.AND FRANKLY, I REFER TO HER AS THE VICE PRESIDENT OF THINGS THAT ARE VERY DIFFICULT.
UM, AND SO SHE'LL GIVE YOU AN IDEA OF WHAT WE'RE DOING.
SHE'S ALSO IN CHARGE OF THE RAC PROCESS.
WE'RE DOING OUR OWN RAC, UH, WE'RE STARTING OUR OWN RAC PROCESS ALSO.
AND ALSO, UH, THEN STEVE KLAUS WILL PRESENT ON THE, UH, OTHER TOPIC, UH, ABOUT OUR RESPONSES TO, UH, TO THE EMERGENCIES TO, UH, WINTER STORM URI, UH, AND THOSE RECOMMENDATIONS, WHETHER THEY'RE FROM SENATE BILL THREE, WHETHER THEY'RE FROM BLACK AND REACH BLACK AND VEATCH, OR WHETHER FROM OUR OWN OCTOBER OF 2020 REPORT, HOW WE'RE HOLDING THOSE.
AND AS WE RE AS AND AS WE REFER TO IT, THE READ COMMITTEE, UH, NOW THERE'S ANOTHER REED COMMITTEE, BUT THE ORIGINAL READ COMMITTEE OF, UH, PREPAREDNESS AFTER THE, UH, RAINSTORM, UH, WE WILL ALSO BE, UH, WILL BE PRESENTING ON THAT.
I DO WANT TO TELL YOU THAT SINCE, UH, MAY OF THIS YEAR, WE HAVE BEEN REPORTING TO OUR BOARD AND THEREFORE THE PUBLIC ALSO ABOUT OUR DISCONNECT, UH, SITUATION ABOUT THE INDIVIDUALS THAT FIND THEMSELVES IN A SITUATION WHERE THEY COULD POTENTIALLY HAVE THEIR WATER DISCONNECTED, UH, SINCE MARCH OF THIS YEAR, RIGHT AFTER THE, THE STORM WE HAVE PRESENT, BEEN PRESENTING TO OUR BOARD AND THEREFORE THE PUBLIC ABOUT OUR RESPONSE TO THE RECOMMENDATIONS THAT HAVE BEEN COMING IN.
SO THOSE ARE ONGOING, AND, UH, YOU'LL GET, UH, A FULLER REPORT ON THAT, UM, ON THOSE ISSUES.
IF THERE'S ANY INITIAL QUESTIONS THAT YOU HAVE THAT I CAN ANSWER, OTHERWISE, UH, MARY AND STEVE WILL PRESENTING.
SO, UH, ANY QUESTIONS OF ME? OKAY, THANK YOU.
I THINK I LOOK FORWARD TO HEARING THE STATISTICS AND THE NUMBERS FROM, UH, MARY BAILEY.
SO, UM, THE C OVID 19 PANDEMIC HAS TRULY BEEN EXTRAORDINARY AND UNPRECEDENTED EVENT FOR OUR COMMUNITY, OUR, OUR STATE, OUR NATION, OUR THE WORLD.
AND AS YOU KNOW, JUST OVER 18 MONTHS AGO, THE WORLD HEALTH ORGANIZATION DECLARED A GLOBAL PANDEMIC RELATED TO C OVID 19 AND SAW AS IMMEDIATELY ANNOUNCED THAT WE WOULD TEMPORARILY CEASE DISCONNECTION OF WATER SERVICE DUE TO NON-PAYMENT.
DURING THE LAST 18 MONTHS, SASS HAS SEEN A SIGNIFICANT INCREASE IN THE NUMBER OF DELINQUENT ACCOUNTS.
PRIOR TO THE MORATORIUM ON DISCONNECTIONS, SASS HAD A LITTLE MORE THAN 5,000 ACCOUNTS OWING ABOUT $2.2 MILLION THAT WERE ELIGIBLE FOR DISCONNECTION.
18 MONTHS LATER, THERE ARE MORE THAN 65,000 ACCOUNTS THAT ARE 60 DAYS OR MORE PAST DUE WITH AN OUTSTANDING BALANCE OF NEARLY $54 MILLION.
NEARLY 62,000 OF THOSE ACCOUNTS ARE FOR SINGLE FAMILY, RESIDENTIAL CUSTOMERS, AND THE REMAINING, UH, 3000 BEING COMMERCIAL OR MULTI-FAMILY.
IN JUNE OF 2021, WE ANNOUNCED OUR INTENTION TO RESUMED, UH, SERVICE DISCONNECTIONS IN OCTOBER OF THIS YEAR.
AND IN AUGUST, WE REINSTITUTED LATE FEES AND BEGAN DISPLAYING DELINQUENT MESSAGES ON OUR CUSTOMER'S BILLS.
THERE HAS ALSO BEEN A SIGNIFICANT COMMUNICATION EFFORT TO DELINQUENT CUSTOMERS THROUGH BILL INSERTS EMAILS, POSTCARDS MAILED TO THEIR, UH, ADDRESS, AND EVEN DOOR HANGERS PLACED ON MANY OF OUR DELINQUENT CUSTOMERS HOMES.
WE ALSO EXPANDED PAYMENT PLAN OPTIONS AVAILABLE TO ALL CUSTOMERS TO ADDRESS DELINQUENT BALANCES AND HELP PREVENT DISCONNECTION.
BUT AS OF AUGUST 30TH, LESS THAN 12% OF THOSE CUSTOMERS THAT WERE 60 PER 60 DAYS OR MORE PAST DUE, HAD ENTERED INTO A PAYMENT PLAN, MEANING THAT MORE THAN 50,000 CUSTOMERS WOULD HAVE BEEN ELIGIBLE FOR DISCONNECTION COME OCTOBER.
SO WITH THAT IN MIND, WE SET OUT TO DEVELOP A PLAN TO PRUDENTLY AND COMPASSIONATELY MANAGE THE DELINQUENT ACCOUNTS RELATED TO C OVID 19.
THE PURPOSE OF THE PLAN IS ONE, FIRST AND FOREMOST TO MINIMIZE SERVICE DISRUPTIONS FOR CUSTOMERS DISPROPORTIONATELY IMPACTED BY THE PANDEMIC.
NEXT, WE WANT TO ENCOURAGE OUR DE DELINQUENT CUSTOMERS TO RESUME MAKING PAYMENTS FOR SERVICE AND TO BEGIN TO ADDRESS THEIR DELINQUENT BALANCES.
AND WE ALSO WANT TO MAKE SURE THAT WE CAN RESPOND FLEXIBLY IF, UH, IF AND WHEN FEDERAL DISASTER RECOVERY FUNDS BECOME AVAILABLE, PARTICULARLY FOR OUR LOW-INCOME CUSTOMERS.
THE SAS C OVID 19 RELIEF PLAN, AS WE ARE TERMING IT, UH, WHICH WAS APPROVED BY OUR BOARD ON SEPTEMBER 14, STARTS BY DEFINING WHO IS ELIGIBLE FOR THIS ASSISTANCE TO BE ELIGIBLE FOR ASSISTANCE UNDER THE PROGRAM.
THE CUSTOMER MUST HAVE BEEN 60 DAYS OR MORE PAST DUE AS OF AUGUST 1ST OF THIS YEAR.
WE CREATED FOUR DIFFERENT CUSTOMER CATEGORIES, UH, AND THE PLAN WILL VARY BASED ON THOSE CATEGORIES.
THESE CATEGORIES ARE RESIDENTIAL CUSTOMERS ENROLLED IN OUR AFFORDABILITY DISCOUNT PROGRAM, OTHER RESIDENTIAL CUSTOMERS THAT OWE LESS THAN
[01:45:01]
$2,000 AS OF AUGUST 1ST, AND THEN THOSE RESIDENTIAL CUSTOMERS THAT OWED MORE THAN $2,000.AND THEN FINALLY, THE NON-RESIDENTIAL CATEGORY, WHICH IS OUR COMMERCIAL AND MULTIFAMILY.
FINALLY, WE NOTICED THAT A NUMBER OF CUSTOMERS, UM, THAT HAD LARGE OUTSTANDING BALANCES, IT LOOKED LIKE THEY MIGHT HAVE BEEN RELATED TO LEAKS THAT MIGHT HAVE GONE ON UNREPAIRED FOR A SIGNIFICANT PERIOD OF TIME DURING THE PANDEMIC.
THE PLAN ALSO INCLUDES A PROVISION TO EXPAND THE AMOUNT OF LEAK ADJUSTMENTS THAT WE MAY, THAT MAY BE GIVEN TO THOSE CUSTOMERS BEYOND WHAT WE WOULD'VE NORMALLY OFFERED.
SO LET'S BEGIN WITH THE MOST VULNERABLE OF OUR CUSTOMERS, THOSE ENROLLED IN OUR AFFORDABILITY DISCOUNT PROGRAM.
IF A CUSTOMER WAS NOT ALREADY ON A PAYMENT ARRANGEMENT, A SIX MONTH HOLD HAS BEEN PLACED ON ALL BALANCES OUTSTANDING FOR THOSE CUSTOMERS AS OF SEPTEMBER 14TH.
THIS HOLD PROVIDES THE OPPORTUNITY FOR BOTH SAWS AND OUR CUSTOMERS TO IDENTIFY PAYMENT ASSISTANT OPTIONS THAT MAY BE AVAILABLE THROUGH THE STATE, THROUGH THE CITY, AND PERHAPS OTHER FEDERAL DISASTER RECOVERY FUNDS THAT WILL COME IN THE FUTURE.
CUSTOMERS NEED TO PAY THEIR CURRENT MONTHLY CHARGES BY THE AMOUNT, UH, BY THE DUE DATE IN ORDER TO AVOID ANY DISCONNECTION AND THE SUSPENSION PERIOD, THE HOLD PERIOD.
UH, WE MAY REVISIT THAT TO EXTEND IT BEYOND MARCH OF 2022, DEPENDING ON, UH, ASSISTANCE AVAILABILITY.
THE NEXT, UM, CATEGORY OF RESIDENTIAL CUSTOMERS THAT ARE NOT IN A, ON OUR A D P PROGRAM AND OWE LESS THAN $2,000 AS OF AUGUST 1ST, IF A CUSTOMER WASN'T ALREADY IN A PAYMENT ARRANGEMENT, THAT CUSTOMER HAS AUTOMATICALLY BEEN ENROLLED IN A 48 MONTH PAYMENT AROUND PAYMENT PLAN.
CUSTOMERS MUST MAKE, UH, PAYMENTS BY THE DUE DATE, INCLUDING THEIR CURRENT CHARGES, AS WELL AS, UH, THAT 148TH OF THEIR PAST DUE BALANCE FOR THE NEXT 18 MONTHS.
THEY, OR IF AS SOON AS THEY COVER 37.5% OF THAT OUTSTANDING BALANCE WHEN THE PLAN WAS CREATED, UM, WE WILL CONSIDER, UM, WE WILL WRITE OFF THE REMAINING BALANCE AND IT WILL NOT BE PURSUED BY SAWS.
SO IF YOU WONDER WHY WE CAME UP WITH 37.5% 18 DIVIDED BY 48, IT'S 37.5%.
SO ONCE THEY HIT THAT PORTION OF THEIR PAST DUE, WE WILL WRITE IT OFF AND WE WILL NOT PURSUE IT WITH THOSE CUSTOMERS.
THE LAST TWO CATEGORIES OF CUSTOMERS.
SO RESIDENTIAL CUSTOMERS THAT OWE MORE THAN 2000, AGAIN, NOT IN A D P, UM, AND THEN OUR NON-RESIDENTIAL CUSTOMERS, THESE CUSTOMERS WILL NEED TO ENTER INTO A TAILORED PAYMENT PLAN IN ORDER TO AVOID DISCONNECTION.
THESE CUSTOMERS MAY QUALIFY FOR EXPANDED LEAK ADJUSTMENTS, UM, OR OTHER THIRD PARTY ASSISTANCE.
AND SO THE CUSTOMERS WILL NEED TO CONTACT US SOON, UM, IF THEY HAVE NOT ALREADY DONE SO IN ORDER TO PREVENT DISCONNECTION IN OCTOBER.
I MENTIONED THAT AS, UH, WHEN I STARTED THIS PRESENTATION, THAT WE HAVE MORE THAN 65,000 CUSTOMERS THAT ARE MORE THAN 60 DAYS PAST DUE, LARGELY BECAUSE OF THESE AUTOMATIC PAYMENT PLANS THAT THE BOARD APPROVED EARLIER THIS MONTH.
NEARLY 75% OF OUR DELINQUENT RESIDENTIAL CUSTOMERS ARE NOW IN A PAYMENT PLAN THAT WILL PREVENT THE CUSTOMER FROM BEING DISCONNECTED AS LONG AS THEY ADHERE TO THE TERMS OF THAT PLAN.
MANY OF THE RESIDENTIAL CUSTOMERS, UH, THAT HAVE NOT BEEN AUTO-ENROLLED IN A PLAN HAVE VERY LARGE OUTSTANDING BALANCES THAT PROBABLY WERE LIKELY DUE TO A LEAK.
A LETTER HAS BEEN SENT TO EACH OF THESE CUSTOMERS ADVISING THEM THAT THEY MAY BE ELIGIBLE FOR AN EXPANDED LEAK ADJUSTMENT.
THE SPEC, THE SPECIFICS OF THE EXPANDED LEAK ADJUSTMENTS ARE AS FOLLOWS.
THE LEAK MUST HAVE OCCURRED BETWEEN OCTOBER, 2019 AND JUNE OF THIS YEAR.
THE CUSTOMER MUST PROVIDE SUPPORT THAT THE LEAK HAS BEEN REPAIRED.
THE AMOUNT OF THE ADJUSTMENT WILL BE EQUAL TO 100% OF THE WATER USAGE ATTRIBUTABLE TO THE LEAK AS DEMONSTRATED BY EITHER THEIR USAGE PRIOR TO THE LEAK OR SUBSEQUENT TO THE REPAIR.
TO GIVE YOU AN IDEA, OUR NORMAL LEAK ADJUSTMENT POLICY IS 25%.
SO WE HAVE EXPANDED IT TO 100 AND LIMITED TO TWO MONTHS.
OUR NORMAL POLICY, 'CAUSE OUR INTENT IS USUALLY FIX THE LEAK QUICKLY.
I'VE SEEN CUSTOMERS THAT HAD LEAKS FOR 5, 6, 7, 8 MONTHS DURING THE PANDEMIC.
AND SO WE ARE WILLING TO ADJUST IT, BUT WE DO NEED SOME DEMONSTRATION THAT THE LEAK HAS BEEN REPAIRED.
ONCE THE ADJUSTMENT BRINGS THAT OUTSTANDING BALANCE BELOW 2000, THAT CUSTOMER WILL ALSO BE ELIGIBLE FOR THAT 48 MONTH INCENTIVE PAYMENT PLAN.
SO, AS I STARTED OUT THIS PRESENTATION BY SAYING THE PANDEMIC HAS BEEN EXTRAORDINARY AND UNPRECEDENTED EVENT, UM, I I HAVE SHOWN THAT IT HAS DR.
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UH, EFFECT ON OUR CUSTOMER DELINQUENCIES.THE PANDEMIC PROGRESSED AND THE DELINQUENCIES INCREASED.
SAS HAS PRUDENTLY ESTABLISHED A RESERVE FOR THE UNCOLLECTIBLE ACCOUNTS IN THE AMOUNT OF $41.2 MILLION AS OF THE END OF AUGUST.
AND THAT RESERVE WAS PRIMARILY ESTABLISHED THROUGH CHARGES AGAINST, UM, SAS REVENUES DURING THE PERIOD OF MARCH, 2020 AND AUGUST, 2021.
AND SO WE ANTICIPATE THAT THIS RESERVE COMBINED WITH ANY FEDERAL DISASTER RECOVERY FUNDS THAT WE WILL HAVE ACCESS TO, WILL BE SUBSTANTIALLY SUFFICIENT TO ABSORB THE FINANCIAL IMPACT OF THIS RELIEF PLAN.
AND WITH THAT, I'LL BE HAPPY TO ANSWER ANY QUESTIONS YOU HAVE.
UH, I REALLY APPRECIATE THIS PRESENTATION.
I THINK IT'S A VERY THOROUGH AND, UM, UH, A PRETTY FAIR PROCESS TO ME, UH, THAT LOOKS LIKE YOU'VE PUT FORWARD.
AND I'M PARTICULARLY GLAD TO HEAR THAT YOU'VE GOT A RESERVE THAT YOU THINK CAN ABSORB QUITE A BIT OF THAT.
DO YOU ANTICIPATE, UH, THAT YOU'RE GONNA BE ABLE TO COLLECT, UH, YOU'RE TALKING ABOUT ABOUT A THIRD OF WHAT YOU'VE BEEN ASKING FOR.
IF PEOPLE CONTINUE TO PAY OFF WHAT THEY OWE OVER 18 MONTHS, UH, WHAT DO YOU THINK THE VALUE OF THAT IS COMPARED TO THE 50 SOMETHING MILLION THAT THAT'S UNPAID RIGHT NOW? HOW MUCH DO YOU THINK YOU MIGHT GET PAID OFF? YEAH, SO THE FOLKS THAT ARE ENROLLED IN THE INCENTIVE PLAN, AND THIS IS, UM, SORT OF TRYING TO REMEMBER ALL THE NUMBERS.
I THINK IT'S ABOUT $25 MILLION OR SO.
UM, AND SO OBVIOUSLY WE CAN GET A THIRD OR SO OF THAT.
THEN EIGHT, UH, WHAT IS THAT, EIGHT, $9 MILLION? I THINK IN SOME CASES WE MAY GET MORE.
UM, IN SOME CASES WE MAY NOT GET THAT IF, AGAIN, THAT CUSTOMER HAS TO MAKE THE CURRENT PAYMENT, YOU KNOW, THE CURRENT CHARGES.
AND, UM, AND SO, YOU KNOW, I, WE MAY FIND, UM, THAT SOME OF THESE CUSTOMERS THAT WE'VE NOT HEARD FROM IN, IN MONTHS, UM, MAYBE THEY'VE MOVED ON AND THE, THE, THE LOCATION IS VACANT.
UM, WE'RE, YOU KNOW, MAYBE THE WATER USE IS ZERO OR, OR MAYBE THERE'S AN ONGOING LEAK.
SO I THINK WE'RE GONNA FIND SOME INTERESTING THINGS AND, AND AS WE BEGIN TO, UM, PHYSICALLY GO OUT TO SOME OF THESE PLACES.
BUT, UM, OUR HOPE CERTAINLY IS THAT WE COLLECT THAT 37.5% AT LEAST OF THOSE BALANCES.
IF SOMEBODY OWES A THOUSAND DOLLARS, YOU'RE ASKING 'EM TO PAY ABOUT $20 A MONTH OVER 48 MONTHS, 21, 20 $2 ON TOP OF WHAT THEIR REGULAR BILL WILL BE, AND THEN AFTER 18 MONTHS, IF THEY'VE PAID THAT OFF, WE'LL CONSIDER, UH, ABSOLVING 'EM OF THE REST.
IS THAT RIGHT? THAT'S CORRECT.
OR IF THEY CHOOSE TO WRITE US A CHECK UP FRONT, AND WE HAVE ALREADY HAD CUSTOMERS DO THAT.
WE, WE'LL GO AHEAD AND WRITE IT OFF THE, THE REMAINING BALANCE AT THAT POINT.
UH, COUNCILWOMAN ROCHA GARCIA HAS A QUESTION.
THANK YOU, COUNCILMAN, UH, OR CHAIR COURAGE.
AND, AND THANK YOU, MARY, GREAT PRESENTATION.
AND ROBERT, THANK YOU SO MUCH FOR BEING HERE.
UM, AND I, BEFORE I, I ASK A QUESTION.
I HAD ASKED OF C P SS, UH, THE BOARD MEETINGS, WHAT IS YOUR, UH, SCHEDULE TO SIGN UP BEFORE YOUR BOARD MEETINGS? UH, UH, UP UNTIL THE VERY MINUTE, ACTUALLY, UH, UP UNTIL THE VERY MINUTE THAT WE START THE BOARD MEETING.
UH, BUT THERE HAS BEEN CIRCUMSTANCES WHERE SOMEBODY'S COMING LATE AND THEY SIGN UP.
AND, UH, LUCKILY OUR PAST CHAIR AND OUR CURRENT CHAIR, UH, ALLOW THAT TO HAPPEN.
AND THEN, UM, I DO HAVE TO SAY FROM FROM THE MARKETING PERSPECTIVE, I NEED TO KNOW WHO DOES YOUR MARKETING, BECAUSE I'M REALLY IMPRESSED.
DOOR HANGERS ON HERE, YOU HAVE BILL INSERTS, UM, YOU HAVE BUS WRAPS, AND SO I, I LOVE THAT.
SO, UM, I, I THINK YOU'RE REACHING THE RIGHT AUDIENCES IS, WHICH IS WHAT I WAS TRYING TO, TO GET ACROSS TO.
UH, SO I'VE, I'VE BEEN TRYING TO GET ACROSS TO SOME OF MY, MY COLLEAGUES ACROSS THE, THE, THE CITY AND AT SOME OF THE OTHER ENTITIES THAT WE NEED TO MAKE SURE THAT WE ARE WHERE THE PEOPLE ARE, AND THEY'RE RIDING THE BUS AND THEY'RE GETTING THEIR BILLS IN, YOU KNOW, PERSON OR, OR A PHYSICAL COPY OF THEIR BILL.
AND SO, THANK YOU FOR DOING THAT.
WELL, AND THANK YOU FOR RECOGNIZING THAT.
AND A LOT OF IT DOES COME FROM PEOPLE COMING TO THE BOARD MEETINGS AND SAYING, MAKING A COMMENT THAT THEY ONLY RIDE THE BUS, OR THEY ONLY DO THIS, OR ONLY DO THAT.
AND THAT GIVES US IDEAS OF HOW TO REACH THAT, THOSE INDIVIDUALS.
WELL, THANK YOU FOR LISTENING.
I ALSO LOVE THE CUSTOMER, UM, CATEGORIES THAT YOU ALL HAVE, SO VERY EASY TO UNDERSTAND MULTIFAMILY AND RESIDENTIAL.
SO, UM, THANK YOU FOR BREAKING THAT DOWN.
UM, ON PAGE SEVEN, THERE IS A, AN INSERT, WHICH BY THE WAY, DOES, BY THE WAY, DOESN'T HAVE YOUR BRANDING, BUT IT DOES HAVE SAWS.ORG.
UM, BUT THE ONLY RECOMMENDATION THAT I WOULD MAKE IS, DO Y'ALL HAVE A PHONE NUMBER WHERE PEOPLE CAN CALL IF THEY CAN'T GO ONLINE TO GET PAYMENT? IT WAS SLIDE SEVEN.
SO, SO OUR, OUR MAIN NUMBER, 7 0 4 SAWS, OBVIOUSLY, IF THEY CALL IN THERE, THEY YES.
UM, AND IT IS ON ALL OF OUR MATERIALS.
UM, THANK YOU FOR THE RESERVE.
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AND I DON'T REMEMBER WHAT BEN'S ANSWER WAS, BUT I HAD ASKED IF C P S, UH, HAD A RESERVE.AND SO THE, THE FACT THAT YOU ALL ARE PRESENTING INFORMATION, THAT YOU ALL ARE USING THE RESERVE FOR WHAT I WOULD CONSIDER A VERY RAINY PERIOD, RIGHT.
I JUST WANNA THANK YOU FOR BEING SO, UM, UH, INNOVATIVE, RIGHT.
AND THEN SAYING THIS IS THE RIGHT TIME TO TAP INTO THAT.
I THINK, BRENDA, WERE YOU GONNA CHIME IN ON, OKAY.
UM, AND THEN ALSO, UM, DO YOU ALL UTILIZE NEXTDOOR? YES, WE DO.
WE, WE, WE DO PUT A LOT OF INFORMATION OUT ON NEXTDOOR, OBVIOUSLY.
UM, OUR COMMUNICATIONS DEPARTMENT MANAGES ALL OF THAT AND ALL OF OUR SOCIAL MEDIA OUTREACH.
THANK YOU, MARY, RIGHT? MM-HMM.
UH, FOR, WE ARE FAMILIAR WITH YOU NOW.
UH, THANK YOU FOR THE PRESENTATION.
UH, JUST A COUPLE OF OF COMMENTS THAT I'D LIKE TO SHARE, UM, WITH THE, WITH THE COMMITTEE.
WELL, FIRST OF ALL, GREAT PRESENTATION.
UH, WE HAVE BEEN VERY IMPRESSED WITH THE, OR, I HAVE BEEN VERY IMPRESSED WITH THE PROGRAM THAT SASS HAS DESIGNED FOR THIS.
I THINK IT IS, UH, REALLY WELL TAILORED TO THE NEEDS OF, OF OUR COMMUNITY.
UM, WE, WE HOPE TO SEE SOMETHING SIMILAR IN THE, IN THE C P SS PRESENTATION AS AS WELL.
UM, THIS COMMENT HAS TO DO WITH BOTH C P S AND SAWS.
UM, I KNOW CCP, SORRY, SAWS HAS A PROGRAM CALLED PLUMBERS TO THE PEOPLE.
AND IF YOU HAVE A LEAK RIGHT, SOMEONE CAN GO OUT THERE AND AND EXAMINE IT.
UH, IS, IS THAT HOW IT WORKS? SO, YEAH.
SO THEY DO HAVE TO QUALIFY BASED ON INCOME.
UH, SO, BUT IF THEY DO QUALIFY BASED ON INCOME, WE WILL, UH, PROVIDE A PLUMBER TO GO OUT AND ASSESS THE SITUATION AND DETERMINING ON WHAT NEEDS TO BE DONE.
AND ALSO THE STATUS OF WHETHER THAT IS A TENANT OR A HOMEOWNER, BECAUSE WE WOULD, IF IT'S A TENANT, WE WOULD HAVE TO GET THE LANDLORD'S APPROVAL FOR ANY REPAIRS.
I WOULD LIKE TO, UH, AND, AND CHAIR, YOU MENTIONED JUST A SECOND AGO THAT WHEN HOUSEHOLDS ARE ON A PAYMENT PLAN, THEY'LL HAVE TO PAY THAT PAYMENT ON TOP OF THEIR REGULAR BILL.
SO I IMAGINE THAT THERE ARE MANY HOUSEHOLDS THAT MAY HAVE SOME POSSIBLE, UH, UPGRADES THAT COULD BE MADE, WHETHER IT'S TO THEIR SHOWER HEAD OR, UM, OR MAYBE THEY HAVE AN EXISTING LEAK THAT THEY MAY NOT BE AWARE OF.
I WOULD RECOMMEND THAT WE CAN CONSIDER AS A BODY SETTING ASIDE SOME OF OUR ARPA DOLLARS TO, UH, SEND A PLUMBER OR SOMEONE WHO CAN DO AN ASSESSMENT ON THE HOMES OF THE PEOPLE WHO ARE PAST DUE, AND SEE IF THERE IS A WAY FOR THEM TO BE ABLE TO, UM, TO REDUCE ANY WATER USAGE OR ANY ELECTRICITY CONSUMPTION.
AND POSSIBLY ALSO SET ASIDE FUNDING FOR THE, ANY CAPITAL THAT'S REQUIRED, UH, LIKE A SHOWER HEAD OR A, A NEW PIPE.
UM, I, I THINK THIS COULD HELP US IN TERMS OF EQUITY AND MAKING SURE PEOPLE WHO ARE ALREADY UTILITY BURDENED, UM, CAN REDUCE THAT BURDEN TO SOME EXTENT.
AND IT WILL ALSO HELP US WITH OUR SUSTAINABILITY GOALS.
I APPRECIATE THAT RECOMMENDATION.
AND, AND I'LL JUST SAY SOMETHING THOUGH THAT I KNOW FROM EXPERIENCE, UH, C P S ENERGY WAS DOING ENERGY AUDITS, AND IT WAS TAKING THEM SIX MONTHS OR LONGER TO GET OUT TO A LOT OF THE PEOPLE.
'CAUSE THEY SIMPLY DIDN'T HAVE ENOUGH CONTRACTORS.
MAYBE YOU COULD SAY THEY NEEDED TO INVEST A FEW MILLION DOLLARS MORE IN THE PROJECT, BUT, UH, IT, IT DOES TAKE A LONG TIME TO GET OUT TO EVALUATE THOSE PROPERTIES, BUT I THINK IT'S STILL WORTHY OF A CONVERSATION ON ARPA FUNDING.
UM, I HAVE A QUESTION FOR BOTH UTILITIES.
IS THERE A FORMULA? UM, HI, MARY.
UH, THANK YOU FOR THE PRESENTATION.
UM, UH, IS THERE A FORMULA, A MATHEMATICAL AXIOM, SOMETHING THAT SAYS, UM, IN, IN WHICH EITHER OR BOTH UTILITIES OPERATES, WHERE, UM, IF CER A CERTAIN NUMBER OF COMMERCIAL OR NON AFFORDABILITY ACCOUNTS HAVE BEEN DISCONNECTED, THEN YOU HAVE TO PROPORTION THAT TO, UM, REACH, YOU KNOW, WIDE NUMBER OF AFFORDABILITY ACCOUNT DISCONNECTIONS TO, TO RESIDENTIAL, UM, CUSTOMERS? I'M NOT QUITE SURE.
IS THERE IS, I'LL SAY IT MORE PLAINLY.
I, IF IS, IS THERE A FORMULA THAT, THAT, THAT IN AN INTERNAL, UM, YOU KNOW, POLICY THAT IF YOU DISCONNECT THIS MANY COMMERCIAL ACCOUNTS, YOU HAVE TO, YOU HAVE TO DISCONNECT THIS MANY? NO, NO, NO.
IT'S JUST BASED ON DELINQUENCY.
UH, WE CAN ONLY DO SO MANY IN A DAY.
UM, AND SO IF WE HAVE MORE THAT ARE
[02:00:01]
ELIGIBLE, WE TEND TO DO IT BASED ON BALANCE.SO HIGHEST BALANCE AS OPPOSED TO, BUT WE DON'T, WE DON'T SAY, OH, WELL, IF I'VE GOTTA DO, YOU KNOW, X MANY COMMERCIAL, I HAVE TO DO X MANY A RESIDENTIAL OR IS THAT WHAT YOU, IS THAT WHAT YOU'RE SAYING? YES.
UM, THERE, THERE'S AN INFORMATION OUT THERE THAT THIS IS OCCURRING, WHICH IS WHY I ASK, UM, YOU KNOW, OH, YEAH.
IT, WE ABSOLUTELY JUST LOOK AT WHO OWES US THE MOST MONEY.
I DON'T KNOW WHAT CCPS DOES, BUT THAT'S WHAT, YEAH.
I GUESS I GET AN ANSWER FROM C P S.
WE'LL LET, WE'LL LET THEM ANSWER WHEN THEY COME UP.
BUT I, I WILL MENTION THAT, UH, I THINK, YOU KNOW, THE HIGHEST BALANCES ARE GONNA BE A LOT OF, UH, THE COMMERCIAL.
AND I THINK ONE OR BOTH UTILITIES HAVE SAID THAT'S KIND OF WHERE THEY WERE GONNA GO FIRST AT THE BEGINNING OF OCTOBERS HITTING SOME OF THOSE, UH, HIGH END COMMERCIAL, UH, UH, BILLS.
ANY OTHER, YES, COUNCILMAN? I ALSO WANT US, UH, EXPRESS SUPPORT FOR COUNCILWOMAN SON VAL'S, UH, INTEREST IN, UH, SET ASIDE, SETTING ASIDE RESOURCES FROM THE ARPA FUNDS TO BE ABLE TO GO AND ASSIST, UM, SOME OF THESE PEOPLE WHO ARE CHA UH, EXPERIENCING BILL CHALLENGES TO REDUCE THEIR CONSUMPTION.
YOU KNOW, UM, A LOT OF THOSE PEOPLE, THEY, THEY MAY EVEN HAVE A TOILET THAT REGULARLY LEAKS AND THEY DON'T EVEN KNOW IT.
AND SO THIS COULD SUBSTANTIALLY BRING DOWN THEIR BILLS GOING FORWARD.
UM, OR, OR OTHER HIDDEN LEAKS, YOU KNOW, WHO KNOWS WHERE.
UM, SO THAT'S DEFINITELY SOMETHING THAT I, I WOULD SUPPORT, UH, ON, I CAN'T SLIDE 10.
UH, YOU SHOW THAT YOU HAVE A RESERVE FOR UNCOLLECTIBLE ACCOUNTS TOTALING $41.2 MILLION.
CAN YOU TELL ME WHEN THE LAST TIME SASS TAPPED INTO THAT RESERVE AND HOW LONG DID IT TAKE YOU TO, TO COLLECT THAT RESERVE? SO THE RESERVE FOR UNCOLLECTIBLE ACCOUNTS IS REALLY, UM, REQUIRED BY ACCOUNTING GUIDANCE, ACCOUNTING STANDARDS.
AND SO YOU HAVE TO ASSESS YOUR, YOUR DELINQUENT BALANCES, AND YOU HAVE TO SAY, WHAT'S THE LIKELIHOOD THAT WE'RE GOING TO COLLECT THEM? WE USE THE RESERVE TO COVER ALL OF THE ACCOUNTS THAT WE HAVE TO CHARGE OFF.
PEOPLE MOVE OUT, THEY LEAVE BALANCES.
BUT IT GETS REPLENISHED EVERY MONTH BY, UH, AGAIN, WE LOOK AT OVERALL DELINQUENCIES AND WE SAY, WHAT DOES THAT RESERVE NEED TO BE? AND SO WE ADD TO IT IF WE NEED TO.
AND SO WE HAVE, WE HAVE PUT ALMOST ALL OF THAT $41 MILLION IN THE RESERVE OVER THE PERIOD FROM MARCH, 2020 TO, YOU KNOW, TO NOW.
UM, AND, UH, BUT AGAIN, EVERY SINGLE MONTH WE WILL USE SOME OF THOSE FUNDS TO COVER ACCOUNTS THAT WE HAVE ULTIMATELY DEEMED UNCOLLECTIBLE AND CHARGED OFF.
BUT THO THAT THOSE ARE CUSTOMERS THAT HAVE MOVED OUT.
CAN I JUST, JUST MAKE ONE QUICK COMMENT? 'CAUSE I, I, WE'RE USING THE WORD RESERVE, AND I CAN TELL IT'S PROBABLY, UM,
SO, AS MARY SAID, THIS RESERVE IS PURELY AN ACCOUNTING ENTRY THAT HITS YOUR FINANCIAL STATEMENTS THAT SAYS, IF I LOOK AT ALL MY BALANCES, I THINK I'M NOT GONNA COLLECT X.
AND THEY'RE GONNA ADJUST THAT EVERY MONTH, DEPENDING UPON WHAT'S HAPPENING OUTSIDE OF THAT.
THEY HAVE, UM, THE UTILITIES WILL TYPICALLY REFER TO AS DAY'S CASH ON HAND.
THEY'LL HAVE SOME AMOUNT OF CASH RESERVES.
AND TO THE EXTENT THEY'RE NOT COLLECTING IT HERE, BY DEFAULT, THEY'RE USING THAT TO MAKE UP THAT DIFFERENCE.
BUT IT'S REPLENISHING AND ROLLING.
AND IT'S, IT'S DIFFERENT THAN, UH, NOT GOING TOO FAR DIFFERENT THAN, LIKE, OUR RESERVES, IT FUNCTION DIFFERENTLY.
BUT I SAW A POINT, THIS IS REALLY JUST AN ACCOUNTING ENTRY THAT RECOGNIZES THAT THE PROBABILITY ON SOME OF THESE ACCOUNTS IS THEY'RE NOT GONNA COLLECT THEM, AND THEY'LL, THEY'LL END UP BEING WRITTEN OFF.
NOW, UH, I THINK THAT'S IT, MARY, FROM, FROM YOU AND SAS.
NOW I'D LIKE TO HEAR, YOU KNOW, CP S'S UH, ENERGY PLANS FOR ADDRESSING PAST DUE CUSTOMER BILLS.
UH, I, I HAVE MY PHONE, A FRIEND HERE, DEANNA HARDWICK, WHO'S OUR VP OF CUSTOMER SUCCESS, UH, WHO WILL BE DIGGING THROUGH, UH, THE NUMBERS AS WE, UH, HAVE THIS CONVERSATION.
UH, I'D LIKE TO START, YOU'VE SEEN A LOT OF THIS INFORMATION BEFORE, SO I'M GONNA, I'M REALLY GONNA TRY TO FOCUS ON AN UPDATE FROM WHAT WE'VE SHOWN THE COMMITTEE BEFORE.
UM, THIS, THIS LOOK REALLY IS, UM, THE BALANCES FOR BOTH RESIDENTIAL AND COMMERCIAL FOR WHAT'S CURRENT, YOU KNOW, WHAT'S IN SOME PAST DUE STATE OR WHAT'S ELIGIBLE FOR DISCONNECT.
AS YOU CAN SEE, UH, WE HAVE BEGUN, AND I'LL GET INTO THIS, WE HAVE BEGUN THE PROCESS OF DISCONNECTS FOR OUR LARGEST COMMERCIAL CUSTOMERS.
UH, AND I'LL TALK ABOUT, UH, WHAT WE ARE, UH, YOU KNOW, WHAT WE'RE SEEING, UH, HOW, HOW THE, OUR CUSTOMERS HAVE REACTED TO THAT.
UH, BUT AS YOU CAN SEE RIGHT NOW FOR RESIDENTIAL, UH, WE'VE GOT, UH, ROUGHLY 81,000, UH, 377 CUSTOMERS, UH, WHOSE BALANCES ARE, ARE ELIGIBLE FOR DISCONNECT, IF YOU WILL.
UH, AND, UH, ROUGHLY, YOU KNOW, 37, UH, HUNDRED
[02:05:01]
AND THREE CUSTOMERS, GIVE OR TAKE, UH, ON THE COMMERCIAL SIDE.AND A LOT OF THOSE, AGAIN, COMMERCIAL INCLUDES BOTH LARGE AND SMALL BUSINESS, UH, ALWAYS, UH, GOOD TO JUST KEEP AN EYE ON THE, UH, HOW OUR OUR PAST DUE BALANCES ARE GROWING.
UH, AGAIN, I THINK, UH, YOU KNOW, A COUPLE MONTHS AGO, YOU MAY HAVE SEEN A NUMBER THAT WAS AROUND $500.
SO, UM, SO AGAIN, YOU KNOW, OVER TIME, AS YOU KNOW, YOU'VE SUSPENDED DISCONNECTS AND, AND WE'VE DONE THAT AS OF MARCH OF 19.
THAT BALANCE, THOSE BALANCES JUST CONTINUED TO GROW, UH, IN TERMS OF, OF, OF WHAT THE AVERAGE OF OUR CUSTOMERS HAVE SHOWN US.
UH, I WANNA FOCUS SPECIFICALLY ON, UH, OUR ASSISTANCE PROGRAMS. WE'VE GOT VERY, VERY, UH, ROBUST ASSISTANCE PROGRAMS, DEPENDING UPON, UH, YOU KNOW, UH, WHAT SEGMENT OF CUSTOMERS WE'RE TALKING ABOUT.
UH, WE, YOU KNOW, OUR PROGRAM SAWS HAS THEIR, UM, THEIR, THEIR ASSISTANCE PROGRAM.
YOU KNOW, ALL OF OUR DOLLARS GO THROUGH, THROUGH REAP.
WE CONTRIBUTE, UH, YOU KNOW, UH, UH, MONEY ON AN ANNUAL BASIS, UH, TO REAP THE CITY CONTRIBUTES, TO REAP THE COUNTY, CONTRIBUTES TO REAP.
UH, WE RAISED MONEY THROUGH UNITED WAY FOR REAP.
AND SO FOR CUSTOMERS WHO QUALIFY, REAP IS AN INCOME QUALIFIED, YOU KNOW, ASSISTANCE PROGRAM.
UH, CAA VERDE, WHICH IS, UH, ALSO, UH, UH, AN INCOME QUALIFIED ASSISTANCE PROGRAM.
WE KNOW CUSTOMERS WHO ARE ELIGIBLE, UH, FOR CAA
SO IF YOU AUTOMATE, IF YOU COME IN FOR ASSISTANCE FOR REAP, YOU NATURALLY ARE GONNA GET, UH, YOU KNOW, QUALIFIED FOR, FOR, UH, CASA BETTER THEN, THEN IT'S UP TO THE CUSTOMER, UH, TO TAKE US UP ON IT OR NOT.
SO WE'VE GOT SOME VERY GOOD OVERLAP.
THAT'S ONE OF THE QUESTIONS THAT YOU ASKED.
WE DO HAVE A PROCESS FOR AUTOMATICALLY QUALIFYING BOTH, AND WE'RE WEATHERIZING RIGHT NOW, YOU KNOW, ROUGHLY, I DON'T KNOW, UH, SOMEWHERE AROUND 3,600 HOMES A YEAR.
UH, AND, YOU KNOW, THAT'S WHAT WE HAVE BUDGETED AS, AS PART OF OUR STEP PROGRAM, UH, ON AN ANNUAL BASIS.
THEN WE HAVE, UH, A, UH, VARIETY OF, UH, UH, UH, WE HAVE THE AFFORDABILITY DISCOUNT PROGRAM, BUT WE HAVE A VARIETY OF OTHER PROGRAMS. OUR, OUR CRITICAL CARE PROGRAM, OUR SENIOR CITIZEN PROGRAM, UH, DISABLED, UH, YOU KNOW, UH, UH, UH, UH, UH, UH, PROGRAMS FOR OUR DISABLED CUSTOMERS, OUR BURN VETERANS DISCOUNT, WHICH WE WORKED WITH, WITH SENATOR MENENDEZ THROUGH THE LEGISLATIVE PROCESS.
AND WE STARTED RECENTLY, UH, A PROGRAM WHERE, YOU KNOW, ONE CUSTOMER CAN DONATE TO PAY OFF BALANCE OF ANOTHER.
UH, AND WE HAVE HAD, UH, SOME ACTIVITY THERE.
YOU KNOW, I SERVE ON THE S A I S D FOUNDATION BOARD, AND THEY'LL ACTUALLY GO IN AND, YOU KNOW, AND, UH, AS PART OF THEIR FUNDRAISING EFFORTS, YOU KNOW, THEY'LL PICK A STUDENT WHO THEY KNOW IS IN NEED, AND THEY'LL, YOU KNOW, PAY OFF, YOU KNOW, FOUR OR FIVE, $600 OF THEIR FAMILY'S BALANCE.
SO, UH, SO THAT, THAT, UH, MARKETING FOR THAT, UH, PROGRAM IS PICKING UP.
UH, AND WE'RE REAL EXCITED ABOUT, UH, WHAT THAT HOLDS IN STORE FOR THE FUTURE.
SO, AS WE TALK ABOUT OUR SEQUENCING, UH, YOU KNOW, WE'VE BEGUN, UH, SEPTEMBER ONE REALLY STARTED THE CLOCK FOR OUR, OUR LARGE COMMERCIAL, UH, AND INDUSTRIAL CUSTOMERS.
WE HAD ROUGHLY 204 OF THOSE CUSTOMERS WHO WERE IN THAT CATEGORY.
UH, I CAN TELL YOU, YOU KNOW, REALLY WHAT HAPPENS IS, UM, AS, AS THEIR BUILD DUE DATE COMES IN, UM, AND THEY'RE MOVING PAST THEIR, YOU KNOW, THEIR, THEIR DUE DATE FOR PAYMENT, THEY'LL GET A DISCONNECT NOTICE, UH, AND ULTIMATELY GET INTO OUR COLLECTIONS PROCESS FOR, UH, YOU KNOW, FOR, FOR DISCONNECT.
WE HAVE SEEN, UH, 40 OF OUR LARGEST COMMERCIAL CUSTOMERS HAVE FOUND THEMSELVES, UH, IN THAT CATEGORY WHO HAVEN'T, WHO, WHO HADN'T TAKEN CARE OF THEIR BILL.
UH, ROUGHLY 30 OF THOSE CUSTOMERS TOOK CARE OF THEIR BILL, UH, ONCE THEIR, UM, YOU KNOW, ONCE THEY RECEIVED NOTICE OR WE SHOWED UP TO DISCONNECT, YOU KNOW, THEY, THEY MADE PAYMENT, UH, ONLINE OR, OR HOWEVER THEY MADE, THEY, THEY MAKE THEIR PAYMENTS.
ONLY THREE CUSTOMERS, UH, HAVE ACTUALLY BEEN DISCONNECTED, UH, UH, THROUGH, THROUGH THIS PROCESS SO FAR.
UH, AROUND SEVEN, WE BELIEVE WENT OUTTA BUSINESS.
UH, BUT IT'S BEEN A VERY, VERY SMALL NUMBER THAT HAVE ACTUALLY GOTTEN DISCONNECTED.
SO, UH, THAT REALLY, UH, GIVES, UH, ME A LOT OF, UH, UH, OF, OF HOPE THAT OUR MESSAGE IS GETTING TO OUR CUSTOMERS.
AGAIN, WE'RE DOING ALL THE SAME THINGS ASS IS DOING WITH RESPECT TO, UM, YOU KNOW, UH, BILLING SEARCH AND, YOU KNOW, FLY, UH, UH, UH, POSTCARDS AND, AND ALL THE THINGS THAT, UH, SAS TALKED ABOUT.
YOU KNOW, WE'RE, WE'RE DOING VERY SIMILAR, UH, PROGRAMS. SO WE ARE, AND, AND FOR THE LARGE COMMERCIAL, AND EVEN THE SMALL BUSINESS CUSTOMERS THAT ARE GONNA, UH, START THAT PROCESS HERE, COMING UP, UH, SOON IN ON OCTOBER 1ST, WE'VE GOT DIRECT OUTREACH.
WE'VE GOT KEY ACCOUNT MANAGERS AND, UH, AND GROUPS THAT REACH OUT TO THOSE CUSTOMERS.
UH, AND THEY'LL GET, UH, IN ADDITION TO ALL THE MAILERS, THEY'LL GET PERSONAL TOUCHES, UH, TRYING TO FIGURE OUT WHAT WE CAN DO TO, UH, YOU KNOW, TO MAKE THAT HAPPEN.
WE'VE HAD ONE CUSTOMER WHO'S BEEN IMPACTED BY THE BROADWAY STREET PROJECT, A RESTAURANT THAT RECENTLY CALLED US SAYING, HEY, I NEED SOME HELP.
I'M 80% DOWN ON REVENUE, AND WE'RE WORKING WITH THOSE CUSTOMERS, UH, YOU KNOW, AS THEY, AS THEY REACH OUT.
SO, UM, SO AGAIN, UH, WE STARTED WITH LARGE COMMERCIAL SEPTEMBER ONE.
[02:10:01]
COMMERCIAL, SMALL AND MEDIUM BUSINESSES, UH, STARTING, UH, OCTOBER ONE.THEY'RE NOT GONNA GET DISCONNECTED IMMEDIATELY.
IT'S TYPICALLY GONNA BE, YOU KNOW, 42 DAYS, GIVE OR TAKE, UH, FROM THE TIME THEY GET THEIR BILL UNTIL THE TIME THAT THEY WOULD ACTUALLY BE DISCONNECTED.
SO THERE'S A LOT OF TOUCH POINTS, UH, IN THERE.
AND WE TOUCH, UH, CUSTOMERS A NUMBER OF TIMES BETWEEN THE, THEIR BILL DUE DATE, UH, AND, AND WHEN THEY WOULD ACTUALLY BE DISCONNECTED.
SO THERE'S GONNA BE, UH, AT LEAST THREE TOUCH POINTS WITH THOSE CUSTOMERS, UH, TO, TO, TO TRY TO MAKE ARRANGEMENTS BEFORE, UH, BEFORE WE GET TO THAT POINT.
ON THE RESIDENTIAL SIDE, UH, LITTLE, YOU KNOW, AGAIN, YOU KNOW, THEY'RE, THOSE CUSTOMERS ARE GOING LAST.
UH, WE'VE KIND OF BROKE IT DOWN BY, UH, DIFFERENT SEGMENTS.
WE, YOU KNOW, OUR SEGMENTS MAY BE A LITTLE DIFFERENT, UH, THAN SAWS ARE, BUT, UH, WE WE'RE LOOKING AT RESIDENTIAL CUSTOMERS, UH, BEGINNING ON OCTOBER ONE, UH, THAT ARE NOT ON ASSISTANCE PROGRAMS. THEY'VE MADE NO PAYMENT WHATSOEVER.
UH, AND, UM, THEY HAVEN'T RESPONDED TO OUR OUTREACH.
UH, YOU KNOW, OUR, UH, OUR PROGRAM REALLY HAS BEEN FOCUSED ON WHAT WE'RE CALLING OUR CUSTOMER OUTREACH RESOURCE EFFORT, UH, TEAM THAT IS ACTUALLY MAKING DIRECT CALLS TO CUSTOMERS.
UH, YOU KNOW, WE'VE WON MULTIPLE AWARDS ACROSS THE COUNTRY.
THIS IS VERY, VERY, UH, UM, UNHEARD OF IN, IN THE UTILITY SPACE WHERE WE ACTUALLY DO REACH OUT TO CUSTOMERS TRYING, UH, TO WORK WITH THEM.
WE'RE NOT CALLING THEM SHAKING 'EM DOWN TO PAY THEIR BILLS.
WE'RE JUST SEEING, YOU KNOW, DO YOU NEED HOUSING? YOU KNOW, UH, RENTAL ASSISTANCE? DO YOU NEED, YOU KNOW, UH, MEDICAL, YOU KNOW, SOME TYPE OF MEDICAL PROGRAMS THAT ARE OUT THERE.
WE WORK WITH OUR TWO, YOU KNOW, 200 PARTNER AGENCIES ACROSS, UH, THE COMMUNITY TO TRY TO CONNECT RESOURCES, UH, WHERE THEY CAN DO THE MOST GOOD.
AND SO, UH, WE'VE ACTUALLY, YOU KNOW, REACHED OUT TO CLOSE TO A HUNDRED THOUSAND CUSTOMERS AT THIS POINT.
AND WE'RE, AND THAT PROGRAM WILL CONTINUE THAT, THAT'LL BE A, A LEGACY PROGRAM FOR US GOING FORWARD, UH, WHERE WE'LL CONTINUE REACHING OUT TO CUSTOMERS.
AND, AND THAT'S AMOUNTED TO CLOSE TO $38 MILLION, UH, IN DIRECT PAYMENT ASSISTANCE TO, YOU KNOW, JUST FOR C P S ENERGY BILLS.
NOT TO MENTION THE RENTAL ASSISTANCE AND THE OTHER ASSISTANCE THAT WE'RE ABLE, UH, TO CONNECT THEM WITH.
SO, OUR FOCUS HAS BEEN ON THAT DIRECT OUTREACH, UM, AND WE BELIEVE WE'VE MADE A A LOT OF PROGRESS, UH, ON THAT FRONT.
THERE'S ALWAYS MORE NEED, UH, THAN THERE IS RESOURCES AVAILABLE, BUT, UH, WE BELIEVE, YOU KNOW, OVER AN 18 MONTH PERIOD, $38 MILLION IS, IS A, IS A MATERIAL, UH, AMOUNT OF, OF, UH, ASSISTANCE FOR OUR CUSTOMERS.
SO, ONE INTERESTING, UH, NOTE, UH, FOR THE CUSTOMERS THAT FALL IN THIS FIRST CATEGORY, THAT 21,000, YOU KNOW, 516 NUMBER IS ACTUALLY DOWN AROUND 7,000 NOW.
YOU KNOW, SO, SO WE ALWAYS KNEW THERE'S A GROUP OF CUSTOMERS THAT WEREN'T, WEREN'T GONNA GET ENGAGED WITH US UNTIL THEY GOT THAT DISCONNECT NOTICE AND THOSE NUMBERS COMING DOWN IMMEDIATELY ONCE THEY REALIZED THAT THEY WERE GONNA START GETTING, UH, YOU KNOW, GETTING BACK INTO THE DISCONNECT, YOU KNOW, PROCESS, YOU KNOW, IS REALLY JUST PROOF IN THE PUDDING THAT, YOU KNOW, THAT, THAT, UH, THAT THAT CUSTOMERS WILL RESPOND.
AND, AND AGAIN, I'VE SAID IT BEFORE, I WILL SAY IT AGAIN.
NO CUSTOMER HAS TO GET DISCONNECTED.
UH, YOU KNOW, ALL THEY HAVE TO DO IS BE PROACTIVE.
THEY JUST NEED TO REACH OUT TO US OR, OR ANSWER OUR CALL WHEN WE CALL THEM.
UH, AND WE'LL, WE'LL PUT 'EM ON, ON PAYMENT ASSISTANCE.
UH, I WAS ASKING DEANNA, HOW FAR OUT, UH, DO WE GO? TYPICALLY, MOST CUSTOMERS DON'T WANNA GO OUT BEYOND, UH, 12 MONTHS.
BUT, YOU KNOW, IF THEY NEED MORE TIME, YOU KNOW, WE'VE HAD SOME ASK TO GO OUT AS FAR AS 36 MONTHS, AND THEY CAN CALL US AT ANY POINT IN THAT TIME AND REESTABLISH A NEW, UH, PAYMENT, YOU KNOW, UH, PAYMENT PLAN, AND, AND WE WILL, WILL RE-UP IT.
SO ALL, ALL WE ASK IS THAT OUR CUSTOMERS TAKE INITIATIVE, YOU KNOW, AND, AND, AND DON'T JUST IGNORE THE, THE FACT THAT THIS BALANCE IS HANGING OUT THERE.
UH, 'CAUSE WE DON'T WANNA SEE ANYBODY, UH, GET CUT OFF AT THE END.
UH, THE NEXT TRANCHE WILL BE, UH, RESIDENTIAL CUSTOMERS, UH, THAT WE, MAYBE WE HAVE CON BEEN IN CONTACT WITH, UH, THAT, UM, THAT AREN'T ON ASSISTANCE PROGRAMS. UH, THEY WILL BEGIN NOVEMBER, UH, ON NOVEMBER ONE.
YOU KNOW, SOME OF THOSE CUSTOMERS ACTUALLY WOULDN'T SEE ANY DISCONNECTS UNTIL, UH, THE JANUARY, UH, TIME PERIOD BECAUSE, UH, WE DON'T DISCONNECT OVER THE HOLIDAYS.
SO BETWEEN THANKSGIVING AND CHRISTMAS, WE WILL, YOU KNOW, SUSPEND OUR DISCONNECT PROCESS, AND THEN WE'LL PICK IT BACK UP, UH, YOU KNOW, AFTER THE FIRST OF THE YEAR.
UH, AND THEN FINALLY, YOU KNOW, IT'S, IT'S THE, THE RESIDENTIAL CUSTOMERS THAT ARE ENROLLED IN ASSISTANCE PROGRAMS. THERE'S ABOUT 15,000, UH, OF THOSE CUSTOMERS OUT THERE.
THOSE ARE PROBABLY THE, OUR MOST PROACTIVE CUSTOMERS.
UH, YOU KNOW, I GOT THIS QUESTION AT THE, UH, BOARD MEETING AND, AND I BELIEVE AT THE RATE ADVISORY COMMITTEE MEETING THE OTHER DAY, WHICH OF THESE CUSTOMERS REALLY ARE THE ONES THAT ARE THE LEAST RESPONSIVE? IT REALLY IS THAT FIRST BUCKET OF RESIDENTIAL CUSTOMERS THAT ARE NOT ON ASSISTANCE.
AND, YOU KNOW, JUST AGAIN, THAT, YOU KNOW, IF THEY THINK THEY CAN TAKE THEIR MONEY AND DO SOMETHING ELSE WITH IT, AND UNTIL THEY HAVE TO PAY YOU, THEN YOU KNOW, THEY'LL DO THAT UNTIL, UH, YOU KNOW, UNTIL THEY, THEY, THEY, THEY RECOGNIZE THEY'RE GONNA GET, UH, DISCONNECTED.
SO THOSE ARE REALLY CUSTOMERS WHO, YOU KNOW, MAYBE NOT, MAYBE SOME OF THEM ARE NEED IN NEED OF ASSISTANCE, BUT A LOT OF 'EM HAVE THE ABILITY TO PAY.
THEY'RE JUST CHOOSING TO DO SOMETHING ELSE,
[02:15:01]
YOU KNOW, WITH THEIR MONEY.UM, SO, SO, SO OUR FOCUS REALLY IS ON THAT LAST, UH, GROUP OF CUSTOMERS.
I MEAN, YOU KNOW, I THINK, UH, MARY TALKED ABOUT, YOU KNOW, HOW ARE YOU GONNA PRIORITIZE? WELL, WE'RE GONNA DO THE OUTREACH TO THE CUSTOMERS THAT ARE LOWEST INCOME FIRST AND TRY TO MAKE SURE THEY DON'T GET CAUGHT OFF.
AND THEN WE'LL KIND OF WORK OUR LIST, UH, FROM THERE.
SO, YOU KNOW, IF YOU WANT TO, YOU KNOW, TRY TO GIVE YOU A SIMILAR LOOK AT, AT HOW WE LOOK AT IT, THAT'S, THAT'S WHAT WE'RE DOING.
UH, WE WANNA MAKE SURE THAT, THAT THOSE MOST IN NEED IN OUR COMMUNITY, UH, YOU KNOW, ULTIMATELY DON'T GET, DON'T GET DISCONNECTED.
BUT AGAIN, UH, IT'S VERY IMPORTANT FOR THEM TO, TO, TO BE PROACTIVE.
AND, AND, AND EVEN IF THEY DON'T CALL US, YOU KNOW, WHEN THEY SEE C P S ENERGY, YOU KNOW, UH, ON THEIR, YOU KNOW, ON THEIR, ON THEIR SHOW UP, ON THEIR, ON THEIR PHONE, UH, AT HOME OR ON THEIR CELL PHONE, WE, WE JUST ASK THEM TO PICK IT UP.
UM, THAT'S THE, THE END OF MY FORMAL PRESENTATION.
MR. CHAIR, YOU ASKED ME A SERIES OF QUESTIONS THAT YOU WANTED ME TO ADDRESS.
UH, AND I DON'T KNOW IF YOU, IF YOU WANNA, YOU KNOW, MOVE TO THE ONES YOU'RE MOST SPECIFIC IN, OR IF YOU WANT ME TO JUST GO DOWN THE LIST, I'LL BE HAPPY TO, I THINK THAT, YOU KNOW, I DID ASK FOR SOME DETAIL, BUT I THINK YOU CAN SHARE THOSE WITH ME ON, ON ANOTHER OCCASION.
TAKING UP AS MUCH TIME, BECAUSE WE'RE RUNNING.
UH, AND SO YOU CAN SEND THOSE TO ME IN WRITING, AND I'LL BE GLAD TO SHARE WITH US COMMITTEE MEMBERS LATER.
LEMME ASK A COUPLE QUESTIONS RELATED TO, UH, EXCUSE ME, RELATED TO WHAT YOU'VE JUST PRESENTED, UM, THE REPROGRAM THAT YOU HAVE, YOU NOT, YOU NOTED 15,000 FAMILIES AND $16 MILLION.
HOW ARE PEOPLE QUALIFIED TO FIT INTO THAT PROGRAM? SO WE, YOU KNOW, WE QUALIFY THROUGH, YOU KNOW, ANY OF OUR AGENCIES CAN QUALIFY, YOU KNOW, UH, UH, CUSTOMER FOR REAP.
UH, TYPICALLY IT'S GONNA FOLLOW THE 125% OF THE FEDERAL POVERTY, UH, GUIDELINES.
UH, THAT, THAT, YOU KNOW, WE'VE TALKED, UH, WE'VE PROPOSED IF WE WANNA HELP MORE CUSTOMERS, YOU KNOW, THE BOARD COULD COME TOGETHER AND LOOK AT A DIFFERENT, YOU KNOW, UH, QUALIFIER.
YOU COULD MOVE IT OUT UP TO 150, 200% IF YOU WANNA HELP MORE CUSTOMERS.
AND THERE'S A LOT OF IDEAS WE'VE GOT, WE HAVE NOT HAD A REBOARD MEETING.
WE'D LIKE TO HAVE ONE, UH, SOON, BUT, BUT THERE ARE OPPORTUNITIES TO HELP MORE CUSTOMERS, UH, IF WE, IF WE LOOK AT, AT CHANGING THAT, THAT GUIDELINE.
WELL, I THINK YOU HEARD FROM SEVERAL OF US THAT WE WERE IMPRESSED WITH WHAT SAS HAD TO OFFER IN THE WAY OF PLANS.
AND I HAVEN'T HEARD YOU TALK ABOUT ANY PLANS FOR REPAYMENT.
AND SPECIFICALLY, I LIKE THE IDEA THAT THEY AUTOMATICALLY ENROLLED PEOPLE WHO WERE BEHIND.
AND SO THEY JUST SAID, YOU OWE THIS MUCH, WE'RE GONNA SPREAD IT OUT TO 48 MONTHS.
IF YOU PAY OFF SO MUCH OF IT, WE CAN FORGIVE THE REST.
AND I THINK, YOU KNOW, AUTOMATICALLY ENROLLING SOMEBODY IS PROBABLY GONNA BE MORE SUCCESSFUL THAN WAITING FOR THEM TO COME TO YOU TO TRY AND FIGURE OUT, WELL, HOW ARE WE GONNA PAY THIS OFF? SO, YOU KNOW, I'M, I'M A LITTLE DISAPPOINTED THAT I DON'T SEE MORE DIRECT PLANS TO, IF, IF YOU SAY IT THIS WAY, I THINK IT'S FAIR FORCE PEOPLE INTO GETTING INTO A REPAYMENT PLAN SOMEHOW.
AND OF COURSE, IF THEY DON'T, THEY DON'T, AND THEN, YOU KNOW, YOU, YOU WOULD, UH, I THINK STILL HAVE THE, THE AUTHORITY TO CUT 'EM OFF.
BUT I THINK IT WOULD PROBABLY ENABLE MORE PEOPLE TO FEEL LIKE, OKAY, NOW I, NOW I KNOW HOW DO I CAN DO THIS RIGHT.
AND I NEED TO MOVE FORWARD WITH IT.
SO, UH, WHY HAVEN'T YOU THOUGHT OF ANYTHING LIKE THAT, MR. CHAIRMAN? WE'VE BEEN FOCUSED ON, UH, THE PROGRAMS THAT WE'VE MADE AVAILABLE TO OUR CUSTOMERS.
YOU KNOW, UH, WE, WE DON'T HAVE ANY INTENTION OF FORCING OUR CUSTOMERS INTO PLANS BECAUSE WE WANT THEM TO BE PROACTIVE IN, IN CONNECTING WITH US NOW $38 MILLION OF DIRECT PAYMENT ASSISTANCE.
WE THINK THAT'S PRETTY, UH, THAT, YOU KNOW, THAT'S PRETTY SIGNIFICANT, AND WE'RE GONNA CONTINUE THAT.
WE'VE, WE'RE ALSO SEEKING ARPA FUNDING, UH, TO TRY TO HELP BUY DOWN SOME OF THESE BALANCES IF WE'RE SUCCESSFUL AT THE STATE LEVEL.
UH, BEING ABLE TO, UM, YOU KNOW, TO, THERE, THERE ARE MONIES AVAILABLE FOR UTILITY ASSISTANCE THAT I THINK WE CAN PROGRAM THOSE IN A WAY THAT, UH, THAT ALLOW US TO DO SOMETHING.
YOU KNOW, MAYBE SIMILAR TO WHATS HAS DONE, WE'VE BEEN CUTTING OUR COST TO C P S ENERGY OVER THE LAST, YOU KNOW, SINCE THE LAST RATE CASE TO TWO TO $900 MILLION.
SO, YOU KNOW, I THINK BEN EXPLAINED HOW, YOU KNOW, THE BAD DEBT, YOU KNOW, UH, WORKS THROUGH, UH, OUR, UH, YOU KNOW, OUR BUDGET.
UH, BUT, UH, BUT CERTAINLY WE ARE, YOU KNOW, JUST BECAUSE WE'RE NOT DOING SOMETHING EXACTLY LIKE SAWS DOESN'T MEAN WE'RE DOING NOTHING.
I, I THINK $38 MILLION IN OUR CORE PROGRAM OF DIRECT OUTREACH HAS MADE A HUGE, HUGE, HUGE IMPACT ON, YOU KNOW, CUSTOMERS WHO, UH, HAVE BEEN ABLE TO, TO TAKE ADVANTAGE OF IT.
NO, I HEAR WHAT YOU'RE SAYING, AND I UNDERSTAND THE GREAT INVESTMENTS, YOU KNOW, C P S HAS MADE TO TRY AND HELP PEOPLE MOVE FORWARD.
UH, BUT I, I STILL AGREE THAT THE PLAN THEY PUT IN PLACE WAS USEFUL.
YOU'RE, YOU'RE EITHER, YOU'RE SAYING YOU DON'T WANNA FORCE PEOPLE TO PAY, BUT THEN AGAIN, YOU'RE GONNA TURN 'EM OFF.
SO, YOU KNOW, YOU MAY BE DOING THEM A FAVOR BY PUTTING THEM INTO A MANDATORY PAYMENT PROGRAM, RATHER THAN JUST LETTING THEM FLOUNDER AROUND NOT KNOWING WHAT TO DO, AND THEN JUST GETTING CUT OFF.
WELL, WE'RE DOING EVERYTHING WE CAN, SIR, TO CONNECT WITH THOSE WHO NEED IT.
[02:20:01]
UH, AND AGAIN, I MEAN, IF, AGAIN, WHETHER IT'S AT A, YOU KNOW, COMMUNITY EVENT, ONE OF THE COUNCIL MEMBERS, UH, YOU KNOW, EVENTS, WHATEVER THE CASE MIGHT BE, YOU KNOW, THE MINUTE WE MAKE CONTACT, YOU KNOW, THAT THAT BUBBLE'S POPPED AND, AND WE GET 'EM ON A PAYMENT PLAN.SO, UH, THE EFFORT IS NOT, YOU KNOW, SIGNIFICANT, YOU KNOW, AND AGAIN, WE'LL TAKE, UH, WHATEVER, UH, UH, UH, SUGGESTIONS YOU HAVE AT WHAT WE'RE NOT DOING, YOU KNOW, TO MAKE THOSE CONNECTIONS.
UH, SO THAT, UH, YOU KNOW, SO IF YOU HAVE IDEAS FOR THINGS THAT WE'RE NOT DOING, UH, TO BE ABLE TO CONNECT WITH THOSE CUSTOMERS, YOU KNOW, WE WILL, UH, WE'LL TAKE THOSE, UH, AND, AND DO AND, AND TRY TO TRY TO DO SOMETHING WITH 'EM.
ANYWAY, UH, ANY OTHER COUNCIL MEMBER? YES, COUNCILWOMAN SANDOVAL? UM, I, I CONCUR WITH, UH, COUNCILMAN COURAGE.
UH, I, I GUESS THAT'S A, IS THAT A C P SS BOARD DECISION? HOW THEY, HOW THEY CONDUCT THE REPAYMENT PLAN, BEN? OR IS THAT DIRECTION THAT WE CAN, UM, SUGGEST OUR, OUR BOARD, YOU KNOW, HAS SEEN, HAS, WE'VE PRESENTED AND, AND HAD CONVERSATIONS ABOUT, ABOUT THIS PLAN? SO YES, OUR, OUR BOARD VERY MUCH IS INVOLVED IN, IN OUR APPROACH.
I, I GUESS HOW
UH, WE WANT C P S TO EMULATE SAS PROGRAM IN TERMS OF AUTOMATIC ENROLLMENTS FOR, FOR CERTAIN CUSTOMERS.
I THINK THAT WOULD BE SOMETHING THAT, THAT THE COMMITTEE COULD, UM, SHARE WITH THE STAFF AND THEN THE STAFF CAN GO BACK AND HAVE THAT CONVERSATION WITH THE BOARD.
LET ME JUST CLARIFY, WE CAN, UH, MAKE ALL KINDS OF RECOMMENDATIONS, BUT IN NO WAY ARE WE AUTHORIZED AND, AND HEADING TOWARDS TRYING TO DIRECT ANY UTILITY ON HOW TO DO THEIR JOB.
BUT I WOULD REALLY LIKE TO SEE THAT HAPPEN.
I WILL BE HAPPY TO SHARE YOUR PERSPECTIVE WITH OUR BOARD.
I, IF YOU NEED ME TO, TO, IF YOU NEED TO HEAR THAT, I, I'LL BE ABSOLUTELY HAPPY TO SHARE THAT WITH OUR BOARD.
COUNCILWOMAN, KADE, VERA, AND THEN COUNCIL.
UH, COUNCILMAN THAT GUY OVER THERE.
YEAH, MARIO BROTHER, MY FRIEND.
UM, THE, I JUST WANTED TO QUICKLY NOTE THAT WHEN YOU SHARE THAT WITH YOUR TEAM THAT YOU ALSO MENTIONED THAT I WOULD LIKE TO SEE THAT AS WELL.
I WOULD LIKE TO SEE THAT AS WELL, PLEASE.
YOU KNOW, UM, AS YOU WERE PRESENTING THIS AND AS WE WERE DISCUSSING, UM, AUTOMATIC AUTOMATICALLY BEING ENROLLED INTO A PAYMENT PLAN, IF I LOOKED AT YOUR NUMBERS, YOU KNOW, YOU, YOU HAD OVER 15,000 PEOPLE, UH, RESIDENTIAL CUSTOMERS THAT YOU SAID THAT WERE, UM, LIKE IN, UH, THAT ON ASSISTANCE PROGRAM PAST DUE.
AND DID YOU SAY YOU HAD THAT, YOU JUST GOT ABOUT 7,000 OF 'EM BACK, UH, IN CONTACT? YEAH.
THAT FIRST BUCKET THAT IS COMING UP FOR, FOR REINSTITUTION OF DISCONNECTS, THAT NUMBER HAS ALREADY DROPPED PRETTY SIGNIFICANTLY.
UH, BUT YOU STILL HAVE OVER 8,000 IN THAT BUCKET.
SO I'M JUST WONDERING WOULD IT POSSIBLY SAVE C P SS ENERGY, TIME, AND RESOURCES BY AUTOMATICALLY ENROLLING THEM AS OPPOSED TO HAVING TO DEAL WITH EACH CASE INDIVIDUALLY AND, YOU KNOW, JUST GET THEM STARTED ON THAT? YEAH.
BECAUSE THAT SEEMS LIKE THAT WOULD TAKE A LOT OF STAFF TIME TO WORK, WORK OUT DETAILS OF OVER 8,000 ACCOUNTS.
WE'LL, WE'LL, WE WILL TRY TO CONNECT WITH EVERY ONE OF THOSE CUSTOMERS A MINIMUM OF THREE TIMES BEFORE THEY GET INTO THE DISCONNECT PROCESS.
SO, YOU KNOW, IT'S NOT LIKE WE'RE NOT GONNA TRY TO REACH THE CUSTOMERS WHO ARE GONNA BECOME ELIGIBLE FOR DISCONNECT.
WE'RE GONNA DO EVERYTHING WE CAN TO GET AHOLD OF THEM TO TRY TO GET 'EM ON, ON A, A, A PAYMENT PLAN.
I MEAN, EVEN, YOU KNOW, AGAIN, I CAN'T SPEAK FOR, FOR SAS PROGRAM.
WHAT I TELL YOU IS I WOULD IMAGINE THAT THOSE CUSTOMERS AUTOMATICALLY ENROLLED STILL HAVE TO BE PROACTIVE ABOUT MAKING A PAYMENT THAT THEY DIDN'T AGREE TO MAKE.
YOU KNOW? SO AGAIN, I WOULD RATHER WORK OUT A DEAL THAT OUR CUSTOMERS AGREED TO, YOU KNOW, SO THAT THEY UNDERSTAND, YOU KNOW, WHAT THE EXPECTATION IS AND WE CAN KEEP 'EM IN GOOD IN, IN A GOOD PLACE, RIGHT? BUT THEY HAD ALREADY FAILED TO MAKE A PAYMENT THAT THEY HAD AGREED TO MAKE.
AND SO NOW YOU'RE TALKING ABOUT, SO IT'S REALLY HELPING THEM GET CAUGHT UP ON PAYMENTS THAT THEY HAD AGREED TO MAKE IN THE PAST FOR, FOR OUR PROGRAM IS ABSOLUTELY, YOU KNOW, UH, TAILORED TOWARDS, YOU KNOW, KEEPING THEM ON TRACK ON AN AGREEMENT.
THEY AGREE, THEY, THEY'VE ALREADY AGREED, YOU KNOW, TO PAY WHATEVER THEY CAN PAY.
I, I JUST WONDER IF IT WOULD BE MORE EFFICIENT TO, TO AUTOMATICALLY ENROLL PEOPLE INTO THAT.
UM, BECAUSE THEN YOU WOULDN'T HAVE TO HAVE STAFF SIT DOWN AND, AND GO OVER THE DETAILS, UH, OVER 8,000 TIMES.
AND COUNCILMAN, I UNDERSTAND THAT IS THE, THE PERSPECTIVE OF THIS COMMITTEE I GET.
SO THE OTHER LAST THING IS, I'M JUST WONDERING IF THERE'S ANY WAY YOU CAN FAST TRACK ANY TARGETED OUTREACH PER WEATHERIZATION FOR ANY OF THESE PEOPLE WHO HAVEN'T UNDERGONE THAT? UM, WHO
[02:25:01]
AND WHO MIGHT BE ELIGIBLE? WELL, YES, SIR.SO AGAIN, YOU KNOW, WE'RE GONNA TARGET ANYBODY WHO, YOU KNOW, WHO IS ELIGIBLE, THAT WE KNOW IS ELIGIBLE FOR REAP IS AUTOMATICALLY GONNA GET TARGETED OUTREACH.
WE, WE'VE GOT A CAPACITY CONSTRAINTS TO A CERTAIN DEGREE ON WEATHERIZATION.
AND BY AND LARGE, YOU KNOW, WE BEAT THE BUSHES TO GET, UH, TO THAT NUMBER.
SO, BUT, BUT WE ALSO DEVELOP A POOL OF, OF CUSTOMERS THAT WE'RE GONNA GO TO NEXT AS SOON AS, YOU KNOW, CAPACITY, YOU KNOW, IS ABLE TO, TO BE INCREASED.
SO, SO WE'RE CONSTANTLY QUALIFYING PEOPLE AND GETTING 'EM ON THE LIST SO THAT WHEN WE CAN RIGHT.
YOU KNOW, WHEN WE HAVE THE CAPACITY, WE CAN GET TO THEM AND GET THEM WEATHERIZED.
SO MY QUESTION IS THEN, FOR PEOPLE WHO ARE BEHIND ON PAYMENTS, I'M WONDERING IF WE COULD PRIORITIZE TARGETING THEM AND, AND SEEING IF WE CAN GET THEM SIGNED UP TO, TO THE EXTENT THEY QUALIFY, QUALIFY.
AGAIN, THEY GOTTA MEET THE 125% GUIDELINE, BUT IF THEY, IF THEY QUALIFY, THEN CERTAINLY.
I WAS JUST GONNA ADD MY SUPPORT FOR THE ENROLLMENT, BUT YOU HEARD IT ALREADY, SO THANK YOU.
UH, I KNOW WE'VE RUN OVER TIME.
I, I APPRECIATE, UH, ALL THE COUNCIL MEMBERS BEING ABLE TO CONTINUE.
WE DO HAVE LUNCHES OVER HERE, COUNCIL MEMBERS.
ALSO, I WANT TO JUST GO TO THE THIRD ITEM.
THE THIRD ITEM, UH, NUMBER THREE IS, UH, A BRIEFING BY THE SAN ANTONIO WATER SYSTEM, CCPS ENERGY ON IMPLEMENTATION OF RECOMMENDATIONS FROM THE COMMITTEE ON EMERGENCY PREPAREDNESS.
UH, AND SO I THINK IT'S IMPORTANT FOR US TO GO AHEAD AND GET TO THAT AND TRY AND GET AN UPDATE.
OUR GOAL HAS ALWAYS BEEN TO HAVE THE REPRESENTATIVES FROM BOTH UTILITIES COME EVERY WEEK, OR EXCUSE ME, EVERY MEETING AND LET US KNOW WHICH OF THE RECOMMENDATIONS THAT HAVE BEEN PUT, PUT FORWARD, HAVE BEEN ACHIEVED, HOW THEY WERE ACHIEVED, HOW WE THINK, WHAT WE THINK THE BENEFIT IS OF THAT.
WE REALIZE IT'S A LONGER ONGOING PROCESS.
THERE WAS SOMETHING LIKE, UH, HIGH FORTIES AND THE NUMBER OF RECOMMENDATIONS.
PLUS, I KNOW BOTH SAWS AND C P S ENERGY HAVE UNDERTAKEN THEIR OWN SELF-EVALUATION IN WHICH THEY'VE IDENTIFIED OTHER KEY AREAS THAT THEY WANTED TO LOOK AT.
SO WE'D LIKE TO SEE, UH, AN UPGRADED, UH, OR AN UPDATED REPORT ON HOW THOSE ARE GOING SO THAT WE KNOW WE'RE MOVING IN THE DIRECTION OF BEING BETTER PREPARED, UH, FOR ANY OTHER SITUATION LIKE WE HAD THIS PAST WINTER WHEN WE MAY HAVE IN THE FUTURE.
SO, UH, STEVE, I, I PRESUME YOU'RE
[3. Briefing by the San Antonio Water System and CPS Energy on the status of implementing the recommendations from the Committee on Emergency Preparedness’ Report [Ben Gorzell Jr., Chief Financial Officer; Troy Elliott, Deputy Chief Financial Officer]]
GONNA GO AHEAD AND GIVE THE PRESENTATION, UH, FOR C P S ENERGY, UM, FOR, SO FOR SAUCEI'LL TRY TO DO THE C P S LINK.
THANK YOU, CHAIRMAN AND COUNCIL MEMBERS.
I'M THE CHIEF OPERATING OFFICER FOR THE SAN ANTONIO WATER SYSTEM.
AND, AND YES, THAT'S WHAT WE WANT TO DO, UM, VERY QUICKLY, 'CAUSE I KNOW WE'RE RUNNING BEHIND, HOW DO WE IDENTIFY, IMPLEMENT, AND THEN TRACK AND REPORT OUT ON ALL THE RECOMMENDATIONS FROM THE DIFFERENT GROUPS THAT HAVE PROVIDED THEM TO US.
AND THEN I'M ALSO GONNA GIVE YOU A HIGHLIGHT OF A FEW OTHER THINGS THAT ARE EXTERNAL TO THAT, BUT YOU WANT TO HAVE SOME INSIGHT ON, ON, ON HOW ARE WE GOING THROUGH THIS PROCESS.
AS I SAID, I'LL GO QUICKLY, BUT PLEASE JUST LET ME KNOW IF YOU HAVE ANY QUESTIONS ALONG THE WAY.
SO, AS ROBERT MENTIONED AT THE BEGINNING, AT THE BEGINNING, UM, RIGHT OFF THE BAT, UM, ROBERT MADE THIS A RECURRING ITEM FOR REPORTING OUT TO OUR BOARD ON ALL THE ISSUES RELATIVE TO TROPICAL STORM ERY.
HOW ARE WE DOING IN THAT RESPECT? UH, THIS IS A SNAPSHOT OF THE VERY FIRST, UH, SLIDE IN THE PRESENTATION DECK FROM LAST MONTH, UH, THAT WE GAVE TO OUR BOARD.
AND IN IT, IT SHOWS YOU THAT WE'VE GOT THE THREE DIFFERENT, UM, WAYS THAT WE HAVE PULLED TOGETHER RECOMMENDATIONS THAT HAVE COME TO US.
UH, EVEN, EVEN WHILE THE FREEZE WAS IN ITS WANING DAYS, WE, UH, ROBERT HAD, UH, ASKED TO HAVE AN EXTERNAL REVIEW OF HOW WE PERFORMED AND WHAT ARE THE RECOMMENDATIONS MOVING FORWARD.
AND OF COURSE, UH, BLACK AND VEATCH DID THAT AND PROVIDED A LOT OF GOOD RECOMMENDATIONS FOR US.
OF COURSE, THE EMERGENCY PREPAREDNESS COMMITTEE, UM, LED BY, UH, COUNCILMAN FOWLER, COUNCILMAN WILLIAMS, UH, GAVE US A LOT OF RECOMMENDATIONS.
AND THEN OUR BOARD OF TRUSTEES HAS ALSO CONTINUED TO PROVIDE, UH, ADDITIONAL DETAILS.
A LOT OF THOSE RECOMMENDATIONS WERE, UH, VERY SIMILAR.
SO WHERE APPROPRIATE, WE CONSOLIDATED THOSE.
BUT WHEN YOU ADD 'EM ALL UP, YOU CAN SEE WE STILL HAVE, UM, 67 DISTINCT AND UNIQUE RECOMMENDATIONS THAT WE'RE TRACKING ON A MONTHLY BASIS.
AND THEN EVERY MONTH WE REPORT OUT TO THE BOARD HOW FAR WE'VE COME ALONG.
SO WE'LL HAVE A BOARD MEETING NEXT WEEK.
I'LL HAVE A NEW SLIDE WITH SOME NEW NUMBERS UP THERE.
BUT YOU CAN SEE WE'VE, WE'VE MADE QUITE A BIT OF PROGRESS AS WE'VE, UM, MOVED THROUGH.
AND WE ALSO OFFER TO OUR BOARD EVERY MONTH THE ABILITY TO ASK FOR US TO PROVIDE MORE DETAILS, DO A DEEP DIVE ON ANY PARTICULAR TOPIC.
[02:30:01]
FOR EXAMPLE, LAST MONTH, GINA RAMOS DID A DEEP DIVE ON OUR EXTERNAL COMMUNICATIONS AND SEVERAL SLIDES ON THAT TO JUST GIVE A BOARD A FEELING OF WHERE WE'RE GOING WITH ALL THAT.UM, OF COURSE, WITH THE SENATE BILL THREE EFFORT, THERE'S, UH, TWO MAJOR REPORTS THAT ARE DUE.
UH, THE FIRST REPORT, AS YOU CAN SEE DUE IN NOVEMBER, IS THE CRITICAL LOAD REPORT.
SO WHAT T C Q NEEDED US TO DO WAS IDENTIFY WHAT STATIONS ARE CONSIDERED AS CRITICAL.
AND THEN FOR EVERY ONE OF THOSE STATIONS, THEY WANT TO KNOW REALLY A, A, A PRETTY DEEP DIVE ON THE ELECTRICAL LOADS AND REQUIREMENT OF THAT STATION.
WHAT'S THE PUMPING CAPABILITY OF THAT STATION? WHAT ARE THE ELECTRICAL, UH, ISSUES ASSOCIATED WITH BEING ABLE TO MOVE THAT MUCH WATER? AS YOU CAN SEE, THAT ONE IS DUE IN NOVEMBER.
A LOT OF THAT WORK WAS COMPLETED, UH, BY BLACK AND VEATCH IN THE INITIAL ASSESSMENT.
IT, UM, I WOULD LOVE TO SAY WE PLANNED THAT OUT PERFECTLY.
UM, BUT IT WORKED OUT THAT WHAT WE HAD ASKED BLACK AND VEATCH TO LOOK AT FIT VERY WELL WITH THIS PARTICULAR COMPLIANCE REPORT OR CRITICAL LOAD REPORT.
SO I SEE NO PROBLEMS AT ALL IN US HITTING THAT NOVEMBER SUBMITTAL DEADLINE.
AS YOU CAN SEE, A COPY OF THAT REPORT NEEDS TO GO TO C P S.
UH, IT'LL GO TO THE STATE EMERGENCY MANAGEMENT GROUP AS WELL AS, UH, REQUIRED TO GO TO BEXAR COUNTY.
BUT THE BIGGER REPORT, I THINK THE ONE THAT EVERYBODY'S REALLY ANTICIPATING AND LOOKING FORWARD TO IS, UH, WHAT WE CALL THE EMERGENCY PREPAREDNESS PLAN.
THAT REPORT SAYS, UM, WHAT ARE WE GOING TO DO? WHAT ARE WE AS UTILITY GOING TO DO, UH, TO ENSURE THAT WE CAN PROVIDE SERVICE AFTER THERE'S BEEN A COMPLETE POWER FAILURE FOR 24 HOURS, HOW ARE WE GONNA DEMONSTRATE THAT WE CAN PROVIDE AT LEAST 20 P S I TO ALL OF OUR CUSTOMERS? SO THAT'S A BIG BITE.
MARCH OF NEXT YEAR IS OUR SUBMITTAL DEADLINE.
UH, THAT'S A, A VERY IMPOSING DEADLINE.
THERE'S A LOT OF WORK THAT HAS TO GO INTO THAT.
BUT, UM, ROBERT HAS MADE IT CLEAR, OUR CHAIRWOMAN HAS MADE IT CLEAR THAT THEY WANT US TO BE ABLE TO HIT THAT DEADLINE.
THERE'S AN OPPORTUNITY TO ASK FOR AN EXTENSION, BUT OUR GOAL, OUR REQUIREMENT, OUR MARCHING ORDER IS TO GET IT DONE AND BE READY TO GO BY THAT, UH, MARCH DEADLINE.
UM, SO OF COURSE THERE'S A, A FEW COMPONENTS TO THAT.
WHAT ARE, WHAT ARE THE ALTERNATIVES THAT WE CAN DO TO PROVIDE THAT 20 P S I, THE T C Q HAS PROVIDED AN OUTLINE THAT HAS 14 DIFFERENT ALTERNATIVES THAT WE CAN FOLLOW TO MEET THAT REQUIREMENT.
BUT WHEN YOU REALLY READ THROUGH IT AND YOU GET INTO THE DETAIL OF ALL THOSE ALTERNATIVES, YOU CAN DO WHATEVER YOU WANT PROVIDED YOU HAVE A BACKUP GENERATOR.
SO REALLY THE KEY OF THAT EFFORT IS GOING TO BE WHAT ARE THE GENERATION REQUIREMENTS THAT WE WILL NEED TO HAVE AT OUR STATION.
UM, AND THEN SHORTLY AFTER THAT, UM, ALSO IN THE REPORT AFTER WE'VE DONE THOSE ALTERNATIVE ASSESSMENTS IS WHAT IS THE, THE, UH, IMPLEMENTATION PLAN? HOW QUICKLY DO WE THINK WE'LL WORK THROUGH OUR SYSTEM TO GET IT DONE? AND THEN OF COURSE, ULTIMATELY THAT REPORT GOES TO THE TEXAS COMMISSION OF ENVIRONMENTAL QUALITY.
SO OUTSIDE OF THAT EFFORT, THERE ARE TWO OTHER PLANS THAT ARE, ARE BEING DEVELOPED OR CONCURRENTLY.
OUR EMERGENCY RESPONSE PLAN, WHICH IS THE PLAN OF PLANS, IT REALLY IS EMBEDDED ALL OF THE DIFFERENT THINGS, UH, THAT WE NEED TO DO.
WE HAD UPDATED THAT PLAN RIGHT BEFORE THE WINTER FREEZE.
UM, WE USED A FIRM CALLED ARC.
THEY WORKED WITH US, DEVELOPED A, A, A REALLY ROBUST, UH, EFFORT THERE.
AND SO WE'RE BRINGING ARCS BACK AND WE'RE CURRENTLY WORKING WITH THEM TO UPDATE THAT PLAN BASED ON, UH, EVERYTHING THAT WE'VE LEARNED INTERNALLY.
AND THEN ONCE WE HAVE THE, THE IMPLEMENTATION PLAN AND, AND THE E P P READY AS REQUIRED BY SENATE BILL THREE, UH, WE'LL HAVE THEM FINISH UP THE, THE LATEST ROUND OF THOSE PLANS OVERALL.
AND THEN, OF COURSE, THE, THE EMERGENCY PREPAREDNESS PLAN, WHICH I'VE MENTIONED EARLIER, UH, IS ALSO DUE IN, UH, MARCH OF 22.
UH, STEVE, ARE YOU GONNA TELL US ABOUT THOSE 11 THAT YOU'VE, UH, SOLVED NOW? 'CAUSE YOU'RE, YOU'RE DOING A LOT OF IN-DEPTH EXPLANATION OF A LOT OF OTHER PROCESSES, BUT WHAT WE WANTED TO DO IS FIND OUT WHAT RECOMMENDATIONS HAVE BEEN SOLVED.
AND YOU KNOW, THAT'S NOT AS MUCH OF A DEEP DIVE BEHIND THOSE RIGHT NOW.
I THINK WE MAY ASK THOSE QUESTIONS LATER, BUT OUT OF THE 11 THAT YOU SAID, UH, SAWS HAS RESOLVED, CAN YOU TELL US WHAT THEY WERE? I I DON'T HAVE A LIST OR A SLIDE FOR YOU THAT WILL SHOW EVERY ONE OF THOSE.
I CAN, UH, I CAN CERTAINLY BRING THAT AND, AND MAKE THAT A, A ROUTINE AS WE COME TO THIS MEETING IS HERE'S EXACTLY THE ONES THAT WE'RE MOVING FROM, FROM IN PROGRESS TO RESOLVE.
I'LL BE, I'LL BE GLAD TO DO THAT AT A FUTURE MEETING.
BUT THEY INCLUDE, UH, REALLY A LOT OF THE, THE PLANNING EFFORTS THAT HAVE BEEN GOING ON, FOR EXAMPLE, AND ONE OF THE THINGS I'LL TALK ABOUT LATER IS THE CRITICAL FACILITIES LIST.
[02:35:01]
WAS TO WORK WITH C P S TO, UH, TO ESTABLISH OUR PUMPING STATIONS ON THEIR CRI CRITICAL FACILITIES ROTATIONS SO THAT WE KNEW THEY WERE PROTECTED.IF WE GET INTO OUTAGE, THAT'S ONE OF THE THINGS THAT IS NOW COMPLETE.
WE'VE DONE THAT AND IT'S MOVED INTO THE COMPLETE CATEGORY.
SO WHAT I WOULD LIKE TO DO, AND I'LL BE GLAD TO BRING THAT BACK TO YOU NEXT TIME, IS, AND HAVE A SEPARATE SLIDE FOR JUST THOSE PARTICULAR ISSUES, AND WE CAN WALK THROUGH THOSE IN SOME DETAIL.
STEVE, I'M GONNA ASK YOU TO END YOUR PRESENTATION NOW 'CAUSE THAT'S MORE ON LINES OF WHAT WE'D LIKE TO GET.
AS A REGULAR REPORT, ALSO, ONE OF OUR COMMITTEE MEMBERS NEEDS TO LEAVE, AND THAT WILL LEAVE US SHORT OF, UH, A MAJORITY OF MEMBERS AVAILABLE TO EVEN HEAR THE REST OF THE REPORT.
UH, AND SO, UH, I'M SORRY THAT, UH, I DID KNOW THE OTHER COUNCIL MEMBERS WOULD HAVE TO LEAVE AND ESTIMATING HAS EXTENDED LONGER THAN IT, IT, IT USUALLY IS SCHEDULED TO.
AND SO, YOU KNOW, I'LL APOLOGIZE WE DIDN'T HAVE A LITTLE MORE TIME FOR YOU, BUT SO BOTH UNDERSTAND THE MAIN IDEA OF ASKING Y'ALL TO COME IS TO TELL US WHICH OF THE RECOMMENDATIONS HAVE BEEN SOLVED, HOW THEY'VE BEEN SOLVED, SO THAT WE CAN FOLLOW THAT LIST.
IT'S NOT JUST A CHECKLIST, BUT IT'S AN UNDERSTANDING OF WHAT YOU DID AND HOW IT'S SUPPOSED TO HELP.
UH, I BY ITEM
AND, AND AS TIME PERMITS, WE'LL BE INVITING BOTH SAS AND C P S TO MAKE A DIRECT, UH, PRESENTATION ABOUT IN GENERAL TOPICS ON WHAT'S GOING ON.
UH, AND SO AT THAT TIME, IT WOULD BE MORE APPROPRIATE TO GET INTO THOSE OTHER DETAILS.
AND I, I REALLY DO HAVE TO APOLOGIZE TO THE OTHER MEMBERS OF C P S WHO AREN'T ABLE TO GO AHEAD AND GIVE THIS REPORT AT THIS TIME.
I WOULD ASK YOU IF YOU HAVE THAT REPORT AND, AND YOU COULD SUBMIT IT IN WRITING TO THE COMMITTEE AND WE CAN REVIEW IT AND MAY ASK FOR, UH, ANOTHER PRESENTATION LED, BUT WE REALLY RUN BEYOND TIME, WE'RE LOSING OUR MAJORITY, UH, CHAIR, I'LL JUST MENTION THAT, UH, C P S ENERGY DID PROVIDE A REPORT AND IT'S ATTACHED TO THE AGENDA ITEM.
I BELIEVE IT'S, UM, METRICS IN THE BACK THAT INCLUDES THE, UH, RECOMMENDATIONS FROM THE C E P REPORT.
AND THEN I BELIEVE IT HAS THE STATUS ON EACH ONE OF THEM.
I'LL BE SURE TO LOOK AT IT ALL.
I APOLOGIZE FOR THE LENGTH, BUT, UH, THERE'S A LOT TO WORK ON HERE AND I APPRECIATE EVERYBODY'S DEFENDANTS AND WE'RE GONNA GO AHEAD AND CALL THE MEETING AJOUR.