Dec 15, 2021 City Council B Session on 2021-12-15 2:00 PM

COUNCIL MEMBER ROCHA GARCIA.

COUNCIL MEMBER CAVEO BERDA.

COUNCIL MEMBER SANDOVAL.

COUNCIL MEMBER ELLI.

COUNCIL MEMBER COURAGE HERE.

COUNCIL MEMBER PERRY.

MAYOR BERG.

GOOD AFTERNOON, EVERYONE.

MAYOR, WE HAVE A QUORUM.

UH, WE DO HAVE

[ ITEMS ]

ONE ITEM ON THE AGENDA TODAY, AND THAT IS, UH, OUR CONTINUING DISCUSSIONS ABOUT THE C P S ENERGY RATE, UH, REQUEST.

UH, I DO WANT TO ACKNOWLEDGE THE PRESENCE OF, UH, MANY OF OUR LEADERSHIP TEAM FROM C P SS ENERGY.

THANK YOU ALL FOR BEING HERE.

WE ALSO HAVE THE CHAIR OF OUR RATE ADVISORY COMMITTEE HERE, REED WILLIAMS. REED, THANK YOU FOR BEING HERE.

UM, AND I, I'M SURE THERE ARE MANY OTHERS IN ATTENDANCE.

I KNOW I SAW JANIE GONZALEZ FROM THE BOARD OF TRUSTEES, UH, AND OTHERS.

WE APPRECIATE YOUR PRESENCE.

UH, LEMME TURN IT OVER TO CITY MANAGER, ERIC, TO GET US STARTED.

FINANCIALLY, AND TO DO OUR JOB, UH, COMMUNITY EXPECTS OF US.

UH, GOOD AFTERNOON, MAYOR COUNCIL.

SO THIS IS OUR THIRD, UH, UPDATE TO THE, TO THE COUNCIL AND B SESSION ON THE, UH, PROPOSED C P SS RATE INCREASE, UM, UH, ON MONDAY C P S SENT TO EACH OF YOU.

UH, A LARGE AMOUNT OF FOLLOW-UP.

UM, RUDY, RUDY'S GOING TO COVER IT HIGH LEVEL, UM, TO START US OFF WITH.

UM, AND THEN, UM, WE'RE GONNA TURN IT OVER TO, UM, UM, UH, FORMER COUNCILMAN, UH, REED WILLIAMS, THE CHAIR OF THE RACK, TO GIVE A QUICK UPDATE.

UM, THE GOAL OF TODAY'S MEETING IS TO PROVIDE PLENTY OF TIME FOR THE COUNCIL TO HAVE DIALOGUE AMONGST YOURSELVES, BUT ALSO TO ASK QUESTIONS, ADDITIONAL QUESTIONS OF BOTH THE C P S STAFF, UH, AS WELL AS, UH, CITY STAFF.

UM, AND, UH, UM, WITH THAT, I'M GONNA TURN IT OVER TO RUDY TO KICK US OFF.

WE WILL NOT SPEND A LOT OF TIME IN PRESENTATION MODE TODAY.

MOST OF TODAY IS SET ASIDE FOR DIALOGUE AND, AND QUESTIONS.

RUDY, WELL, THANK YOU, MAYOR AND, UH, MEMBERS OF CITY COUNCIL.

UH, GOOD TO BE BACK WITH YOU AGAIN.

IT'S, UH, YOU KNOW, BEEN, UH, A FREQUENT, UH, SECOND HOME FOR US OVER THE LAST FEW WEEKS, AND I APPRECIATE YOUR PATIENCE AS WE WORK, UH, CONTINUE TO WORK THROUGH THIS PROCESS AND DIALOGUE.

TWO WEEKS AGO, I PRESENTED OUR PROPOSED RATE REQUEST, WHICH REALLY JUST FOCUSES ON, UH, AS WE'VE BEEN DISCUSSING THE CRITICAL NEEDS THAT WE'RE TRYING TO ADDRESS TO, TO STAY ON FIRM FOOTING

[00:15:01]

LAST WEEK, BEN SHARED THE CITY'S RECOMMENDATION IN SUPPORT OF OUR 3.85, UH, PERCENT INCREASE, ALONG WITH, UH, ESTABLISHMENT OF REGULATORY ASSET.

UH, AND, AND, AND AGAIN, I WANT TO THANK BEN AND RUSSELL AND THE TEAM FOR ALL THE WORK THAT THEY'VE PUT IN.

WE KNOW THEY HAVE CITY BUSINESS TO TEND TO, SO THE WORK THAT THEY'VE PUT IN HAS TAKEN 'EM AWAY FROM THAT, AND WE CERTAINLY, UH, APPRECIATE THEIR, THEIR, THEIR DILIGENCE IN THAT PROCESS.

UH, DURING THESE SESSIONS, WE CLEARLY HEARD YOUR MESSAGE THAT WE NEEDED TO ACTIVELY ENGAGE WITH OUR COMMUNITY AND CUSTOMERS IN A DIALOGUE ON THIS REQUEST, NOT JUST THROUGH THE NORMAL CHANNELS, BUT GOING OUT TO MEET CUSTOMERS, UH, WHERE THEY ARE.

UH, EACH OF YOU HAVE A PACKET AND REALLY IS MEANT TO BE A SAMPLE OF THE TYPES OF MATERIAL WE'RE USING, UH, TO, UH, YOU KNOW, TO ENGAGE OUR CUSTOMERS.

UH, YOU KNOW, WE, UH, I'LL TURN IT OVER TO A TEAM MEMBER OF MINE, BUT WE HAVE STARTED THE DOOR KNOCKING PROCESS.

THE, THE HANGER THAT IF THEY'RE NOT THERE THAT WE'RE USING, UH, TO TRY TO GET THEM TO CALL US, IS, IS THERE IN YOUR PACKET.

YOU WILL GIVE YOU SOME OF THOSE IF YOU'D LIKE, UH, TO, TO UTILIZE 'EM.

BUT THERE'S ALSO ANOTHER PIECE IN THERE THAT YOU COULD INCLUDE IN YOUR OWN INFORMATION THAT'S A ONE PAGER.

I, I THINK, UH, IT WAS, UH, UH, UH, COUNCILMAN LYAS WHO ASKED, YOU KNOW, WHAT'S THE MESSAGE? WHAT DO I TELL, YOU KNOW, MY CONSTITUENTS? WELL, IT, IT'S ALL RIGHT HERE, AND I HOPE YOU'LL TAKE, UH, ADVANTAGE OF IT.

I'M PROUD TO SAY THAT OVER THE LAST TWO WEEKS, WE'VE HOSTED OR PARTICIPATED IN OVER 25 EVENTS, UH, WITHIN OUR COMMUNITY.

I'M DOING A COUPLE EVENTS MYSELF, A, A DAY, UH, AND I, I JUST WANT TO THANK YOU FOR PARTNERING, UH, WITH US TO PUT TOWN HALLS IN YOUR DISTRICTS.

AND I'LL, I'LL, I'LL, I'LL SHOW YOU THAT INFORMATION HERE IN A SECOND.

UH, DECEMBER 10TH, WE SENT MESSAGES TO ALL CUSTOMERS WHO HAD, UH, CONTACT INFORMATION, UH, IN OUR SYSTEM TO INFORM THEM OF OUR PROPOSED RATE INCREASE, UH, WHERE TO GET INFORMATION AND HOW TO PROVIDE FEEDBACK.

JUST TO GIVE YOU A FEW EXAMPLES, UH, OF THAT, UH, OVER 785,000 OUTGOING PHONE CALLS WERE MADE.

700,000 EMAILS, OVER 732,000 TEXT MESSAGES.

AND THEN AGAIN, WE'VE KNOCKED ON OVER 200 DOORS IN ABOUT A WEEK AND A HALF WORTH OF DOING IT.

UH, AND I'M PROUD OF THE TEAM, UH, THAT THAT IS OUT THERE.

UM, UM, YOU KNOW, UH, MAKING THAT EFFORT, TO ME, IT'S NOT JUST ABOUT THE, THESE NUMBER OF EVENTS THAT WE'VE BEEN HOSTING.

UM, YOU KNOW, IT'S ABOUT THE INDIVIDUALS WE MEET AND THE STORIES THAT THEY TELL US, THE ENGAGEMENT THAT WE HAVE ABOUT HOW WE CAN BE HELPFUL.

UH, AND I'VE GOTTEN A NUMBER, UH, OF, UH, YOU KNOW, TEXT MESSAGES FROM MY TEAM THAT'S OUT IN THE COMMUNITY, YOU KNOW, TALKING ABOUT THE STORIES, UM, THAT, THAT WE'RE HEARING FROM OUR CUSTOMERS.

AND, AND THEY'RE REALLY, UH, PRETTY GREAT.

YOU KNOW, THE, THE CUSTOMERS APPRECIATE, UH, THE FACT THAT WE'RE OUT THERE, YOU KNOW, TRYING TO DO WHAT WE CAN TO HELP 'EM.

AND, AND WE'VE DONE, WE'VE DONE A LOT.

UM, SO I'M GONNA GO THROUGH THIS PRESENTATION AND, AND AT THE END, I'D LIKE TO BRING DEANNA UP AND, UH, AND JUST GIVE, LET HER GIVE YOU A SENSE, UH, OF SOME OF THE ENGAGEMENT, UH, STORIES THAT, THAT I'M TALKING ABOUT.

UH, BUT WE'RE GONNA CONTINUE TO DO IT.

I, I COMMITTED TO COUNSEL, UH, GIVEN THE TIMELINE THAT WE'VE BEEN WORKING ON, THAT WE'RE GONNA DO OUR PART.

UH, WE HAVE, AND WE WILL CONTINUE TO DO SO.

UM, SO WHEN WE, WHEN, WHEN WE'VE BEEN THROUGH THE LAST COUPLE OF WEEKS, YOU KNOW, UH, WE'VE BEEN REALLY IN LISTENING MODE AND THAT LISTENING MODE AMOUNTS TO, UH, WHAT YOU'VE TOLD US, WHAT OUR CUSTOMERS HAVE TOLD US, OUR, OUR ENGAGEMENT, YOU KNOW, UH, UH, THE GOAL OF OUR ENGAGEMENT STRATEGIES, NOT TO CONVINCE SOMEBODY THAT THEY SHOULD, THEY SHOULD BE GLAD TO, YOU KNOW, TO, TO SUPPORT, UH, A, YOU KNOW, ANY, A RATE INCREASE OF ANY KIND, DOESN'T MATTER IF IT'S 1% OR 10%.

UH, WE RECOGNIZE THAT IT'S A CHALLENGE, YOU KNOW, FOR EVERYONE TODAY TO MEET THEIR OBLIGATIONS TO, YOU KNOW, PAY FOR THEIR COST OF LIVING.

IT REALLY IS TO EDUCATE, YOU KNOW, WE WANT THEM TO UNDERSTAND WHAT WE'RE GONNA DO WITH IT, TO REASSURE THEM THAT, YOU KNOW, THE, THE, THE, THE FUNDING REQUESTS THAT WE'RE ASKING FOR, FOR COUNCIL AND OUR BOARD TO CONSIDER IS GONNA GO TO THE RIGHT THINGS THAT, THAT THEY'RE IN ALIGNMENT, THAT THE THINGS WE'RE TALKING ABOUT, UH, YOU KNOW, UH, UH, COMMITTING THOSE DOLLARS TO ARE GONNA IMPROVE SERVICE AND, YOU KNOW, ALLOW US TO DO OUR JOBS FOR THE COMMUNITY.

UH, AND SO THAT, SO THE EDUCATIONAL ASPECT OF IT IS REALLY WHAT OUR ENGAGEMENT, UH, IS, IS ABOUT, UH, ASSISTANCE PROGRAMS. WE UNDERSTAND THAT THE, THE, THE UTILITY BURDEN ISSUES ARE, UH, REAL IN OUR COMMUNITY.

AND, UH, I THINK WE'VE DONE, UM, YOU KNOW, WHAT WE CAN, AND, AND WE CONTINUE TO COME UP WITH NEW IDEAS TO RE TO MAKE SURE THAT EVERY CUSTOMER WHO IS, UM, YOU KNOW, CAPABLE OF GETTING ASSISTANCE GETS IT.

AND, AND THAT'S THE GOAL OF OUR ASSISTANCE PROGRAMS, IS TO TRY TO CAST A WIDE NET AS WIDE NET AS POSSIBLE, AND BRING THEM IN TO THE PROGRAM C P S ENERGY, YOU KNOW, HAS TO OFFER.

UM, LOOKING AT OUR INFRASTRUCTURE, YOU KNOW, WE KNOW THAT, YOU KNOW, THAT THERE ARE STILL A LOT OF VERY EMOTIONAL FEELINGS ABOUT, UH, WHAT HAPPENED IN FEBRUARY.

AND, YOU KNOW, EVERY, IN EVERY, ALMOST EVERY ENGAGEMENT THAT I DO, THERE'S AN ELEMENT OF EXPLAINING HOW, YOU KNOW, WE ARE PREPARED FOR THIS WINTER SEASON

[00:20:01]

TO GO BETTER AND TO BE, YOU KNOW, ABLE TO, TO SERVE OUR CUSTOMERS IN THE WAY THEY EXPECT US TO.

UH, AND, AND THAT'S A DRIVER OF THIS, OF THIS REQUEST, QUITE FRANKLY.

UM, WE'VE TALKED ABOUT WHAT THE DRIVERS OF THE REQUEST ARE, YOU KNOW, NOT ASKING FOR, YOU KNOW, ANYTHING MORE THAN WHAT WE NEED.

AND I BELIEVE, YOU KNOW, THE FOUR BUCKETS THAT WE KEEP COMING BACK TO, UM, ARE, ARE APPROPRIATE AND, UM, YOU KNOW, AND ARE CRITICAL TO THE SUCCESS, LONG-TERM SUCCESS OF C P S ENERGY, UH, BILL IMPACTS.

WE'VE BEEN CLEAR WITH BOTH THE RESIDENTIAL AND THE COMMERCIAL, UH, CUSTOMER BASE THAT YOU KNOW, WHAT THE BILL IMPACT IS.

AND, UH, WE'RE GETTING OUT THERE AND TRYING TO EXPLAIN THAT, UH, TO OUR CUSTOMERS.

WE'VE TALKED ABOUT GOVERNANCE, COUNCILMAN BRAVO, YOU KNOW, WE'VE HEARD YOU, I, I UNDERSTAND, UH, THAT WE'VE GOT TO CONTINUE TO, TO, TO BE THE, THE PUBLIC OWNED UTILITY THAT OUR COMMUNITY EXPECTS OUT OF US.

WE'VE HAD GOOD CONVERSATIONS, UH, YOU KNOW, WITH THE BOARD AT OUR, AT OUR BOARD MEETINGS, AND WITH BOARD MEMBERS ABOUT HOW THE BOARD CAN TAKE THOSE ISSUES ON AND MOVE THOSE FORWARD.

AND I, AND I, AND I'M HERE TO TELL YOU, YOU'VE GOT A COMMITMENT, YOU KNOW, FOR ME AS A LEADER OF THE ORGANIZATION, AND, YOU KNOW, IN THE CONVERSATIONS I'VE HAD WITH THE BOARD, THAT AS SOON AS WE GET PAST THIS CONVERSATION, WE'RE GONNA PIVOT TO THE THINGS THAT YOU'VE ASKED US TO, UH, YOU KNOW, AND, AND I DON'T KNOW WHAT ELSE I CAN DO, BUT SIT UP HERE AND TELL YOU THAT WE'VE HEARD YOU, AND THAT, YOU KNOW, WE'VE ALREADY STARTED TALKING ABOUT, YOU KNOW, HOW TO PUT A WORK PLAN IN PLACE TO STRATEGICALLY, YOU KNOW, MOVE IN THAT DIRECTION.

TALENT, I, I'M, I'M LOSING PEOPLE EVERY DAY.

I, I CAN'T REINFORCE THE, THE, THE, THE CHALLENGE THAT IT, THAT IT, THAT WE'VE GOT RIGHT NOW AT C P S ENERGY TO RETAIN EMPLOYEES AND TO BRING EMPLOYEES, AND TO GET YOUNG EMPLOYEES TO CHOOSE C P S ENERGY VERSUS OTHER UTILITY COMPANIES THAT THEY HAVE, UH, TO CHOOSE FROM.

AND SO, UH, THE WORK, UH, THE, THE INVESTMENT IN OUR EMPLOYEE BASE IS NOT ABOUT THE EXECUTIVE TEAM.

UH, LET ME JUST CONTINUE TO REITERATE THAT IT IS NOT ABOUT THE EXECUTIVE TEAM.

WE ARE DOING THE BEST WE CAN TO LEAD OUR PEOPLE, BUT WE GOT GAPS ALL OVER THE ORGANIZATION THAT WE HAVE GOT TO DO SOMETHING ABOUT.

AND THEN AGAIN, UH, I'M NOT GONNA SPEAK.

I'M, I'M, I APPRECIATE, UH, UH, MY CHAIRMAN OF, OF THE RATE ADVISORY COMMITTEE, REED WILLIAMS. HE'S BEEN A GOOD PARTNER.

HE'S BEEN A SOLID LEADER OF THAT ORGANIZATION.

UH, AND HE'LL TALK TO YOU TODAY ABOUT, UM, ABOUT THE FEEDBACK YOU'VE GIVEN US ON, UH, RATE DESIGN AND GENERATION PLANNING.

SO, SO, SO THIS REALLY IS A, JUST A RECAP, THE THINGS THAT I'VE HEARD FROM YOU, THE THINGS THAT MY TEAM HAS WRITTEN DOWN AND THAT WE'RE FOCUSED ON, UH, AS WE, AS WE PROCEED FORWARD.

UM, SO, UH, SO MOVING AHEAD, UH, WE, WE ARE STILL WORKING ON A COUPLE OF DISTRICTS, UH, TO GET OUR TOWN HALLS ESTABLISHED.

THE OTHERS, UH, HAVE BEEN ESTABLISHED, UH, ALREADY THAT DOES NOT ACCOUNT FOR THE, UH, UTILITY ASSISTANCE FAIRS THAT WE CONTINUE TO DO.

UH, WE HAD ONE, UH, THAT I ATTENDED ON SATURDAY IN COUNCILMAN CURTIS'S DISTRICT.

MY, UH, MY DISTRICT, UH, AND WHERE WE, WHERE WE PRESENT, WE PRESENTED, UH, INFORMATION ON THE RATE CASE THERE.

WE ANSWERED QUESTIONS.

UH, WE HAD AN EVENT, A SMALL BUSINESS EVENT WITH LULAC, UH, ON, UH, SATURDAY MORNING AS WELL, UH, THAT I ATTENDED.

AND, UH, YOU KNOW, WE WERE ABLE TO ALSO GET THE WORD OUT, UH, THERE AS WELL.

SO, UM, AGAIN, WE'RE GONNA DO EVERYTHING THAT WE COMMITTED TO YOU THAT WE'RE GONNA DO.

UH, AND THEN SOME WE WILL GET IN FRONT OF ANY AUDIENCE THAT WILL GIVE US, UH, A CHANCE TO TALK TO 'EM ABOUT THIS.

BUT I, I, I DID WANT TO TAKE JUST A MOMENT AND, AND THANK ALL THE COUNCIL MEMBERS FOR THEIR CONTINUED WORK AND TRYING TO GET, UH, THESE MEETINGS SCHEDULED.

I WANNA COME BACK TO THE TIMELINE, AS I KNOW, UM, YOU KNOW, IT'S BEEN A TOPIC OF CONVERSATION.

OUR RATE ADVISORY COMMITTEE, UH, MEETS TOMORROW, UH, WHERE THEY HAVE A PROCESS FOR SHARING INDIVIDUALLY THEIR PERSPECTIVE, UH, WITH, UH, WITH, WITH THE BOARD.

UH, AND SO, UH, WE LOOK FORWARD TO THAT MEETING TOMORROW AFTERNOON.

THE C A C WILL MEET ON THE FIFTH, UH, AND THEY WILL CONSIDER A POSITION ON THIS.

AND THEN, UH, WE'LL GO TO OUR BOARD OF TRUSTEES ON THE 10TH.

AT THAT TIME, THE RATE ADVISORY COMMITTEE CHAIR AND THE C A C CHAIR WILL, UH, WILL PRESENT THEIR, UH, RECOMMENDATIONS OR THEIR PERSPECTIVES TO OUR BOARD, AND OUR BOARD WILL TAKE A VOTE ON WHERE WE'RE AT.

I CAN TELL YOU, YOU KNOW, THIS PAST BOARD MEETING ON MONDAY, THERE WAS A ROBUST DISCUSSION ON WHETHER OR NOT 3.85% WAS THE RIGHT NUMBER OR NOT.

UM, SO, UH, THE BOARD IS CHALLENGING, CHALLENGING THE LEADERSHIP TEAM AT C P S ENERGY IN A VERY SIMILAR WAY THAT, THAT, THAT THIS COUNCIL, UH, IS.

AND, AND WE APPRECIATE, UH, THE OPPORTUNITY TO HAVE THAT DIALOGUE.

UH, AND OF COURSE, UH, WE WOULD COME TO, UH, COUNCIL THAT SAME WEEK AFTER OUR BOARD TAKES A VOTE, UH, AND, UH, AND ASK FOR YOUR CONSIDERATION ON THE 13TH.

SO, THAT IS THE END OF MY FORMAL COMMENTS.

I'M GONNA ASK DEANNA TO QUICKLY COME UP AND TALK TO YOU A LITTLE BIT ABOUT, UH, SOME OF THE NUMBERS OF THE CUSTOMERS THAT WE'VE BEEN ABLE TO CONNECT WITH.

UH, AND THEN, UH, I BELIEVE WE'LL MOVE OVER TO, UH, TO, TO MR. REED WILLIAMS. DEANNA.

THANK YOU, RUDY.

MY NAME IS DEANNA HARDWICK.

[00:25:01]

I'M THE INTERIM E V P FOR CUSTOMER STRATEGY.

AND, UH, JUST WANNA FIRST SAY THANK YOU FOR ALL OF THE PARTICIPATION AND DIRECTION AND POINTING US TO WHERE YOU'D LIKE US TO BE IN YOUR DIFFERENT, UH, DISTRICTS.

UH, SINCE DECEMBER 1ST, WHEN WE WERE FIRST HERE, WE WERE, WE HAD THE PLEASURE.

WE'VE HAD THE PLEASURE OF DOING 28 DIFFERENT CUSTOMER EVENTS.

UH, SO WITH MORE THAN MORE THAN ONE A DAY IN SOME CASES, WE'VE GOT, HAD SIX EVENTS IN ONE DAY.

AND AS RUDY MENTIONED, WE SENT OUT MESSAGES LAST FRIDAY, AND WE WERE ABLE TO SEND OUT AS OVER 2.2 MILLION MESSAGES BETWEEN PHONE CALLS, EMAILS, AND TEXT MESSAGES.

ON FRIDAY ALONE, WE HAD, UH, OVER 36,000 PHONE CALLS THAT CAME BACK TO OUR CALL CENTER.

IN GENERAL, WE MIGHT GET BETWEEN FOUR TO 5,000 CUSTOMERS THAT WE GET TO TALK TO ON A FRIDAY.

THIS PAST FRIDAY, WE HAD OVER 36,000 CUSTOMERS THAT CALLED US BACK, AND WE HEARD A LOT OF SIMILAR THEMES FROM FEEDBACK THAT YOU HAVE HEARD.

AND SO, UM, IF IN THE PACKET THAT WE SHARED WITH YOU, THERE ARE SOME LINKS TO VIDEOS THAT WE ENCOURAGE YOU TO WATCH.

AND, AND A LOT OF THAT IS THE CUSTOMERS WHO WE START TALKING TO THEM ABOUT FROM A RATE CASE PERSPECTIVE.

BUT THEN WE START TALKING ABOUT HOW WE CAN HELP THEM.

AND WE HAVE SO MANY DIFFERENT ASSISTANCE PROGRAMS, INCLUDING THE $20 MILLION OF ARPA FUNDS, AND WE HAVE A COUPLE VIDEOS THAT WE WANTED TO SHARE WITH YOU.

WE HAD TWO ENGLISH SPEAKERS AND ONE SPANISH SPEAKER THAT WE HAD.

WERE WILLING TO GIVE US TESTIMONIALS FOR US TO SHARE, AND REALLY ENCOURAGE YOU TO WATCH THOSE VIDEOS.

YOU CAN SEE WHAT A DIFFERENCE THAT THOSE FUNDS ARE MAKING, AND THAT WE'RE ABLE TO, HOW WE'RE ABLE TO TOUCH OUR CUSTOMERS.

SO JUST A COUPLE OF, UH, FEEDBACK THEMES, UH, THAT WE GOT ON THE PHONE AND WHAT WE'VE TALKED TO CUSTOMERS.

SOME CUSTOMERS ARE SAYING, YOU KNOW, FIRST CONCERN IS, I DON'T KNOW HOW I'M GONNA, HOW I CAN'T AFFORD THIS.

SO WE START TALKING ABOUT THE CHANGES THAT WE'RE DOING, CHECKING ON AFFORDABILITY, DISCOUNT PROGRAM, SETTING THEM UP WITH AVERAGE, UH, PAYMENT PLANS, WHATEVER IT IS THAT WORKS FOR THEM.

UH, AND THEN WE HAD A LOT OF CUSTOMERS THAT HAVE TOLD US THAT THEY'RE CONCERNED BECAUSE OF THE RELIABILITY THAT THEY'RE SEEING IN THEIR OWN NEIGHBORHOOD.

THEY HAVE A LOT OF FREQUENT OUTAGES, AND THEY DO WANT FOR THOSE TO, TO GO AWAY.

THEY DON'T WANNA PAY MORE TO HAVE, UM, FREQUENT OUTAGES.

AND SO WE HAVE A CONVERSATION ABOUT THE NEED FOR, TO INVEST IN OUR INFRASTRUCTURE.

UM, AND THEN THE OTHER THEMES THAT WE HEARD IS CUSTOMERS.

SOME CUSTOMERS SAID, UM, WE'LL BE HAPPY TO PAY THREE TO $5 IF THAT MEANS THAT, UH, WE'RE GONNA SEE AN IMPROVEMENT IN THE INFRASTRUCTURE.

A LOT OF CUSTOMERS, WE GOT FEEDBACK ABOUT THE BUILD ESTIMATOR THAT WE HAVE, AND I BELIEVE WE INCLUDED THAT IN THE PACKET THAT WE SHARED WITH YOU.

BUT A LOT OF CUSTOMERS ARE FINDING THAT EXTREMELY HELPFUL.

NOW, THAT'S ON THE RESIDENTIAL SIDE, ON THE, FOR THE COMMERCIAL CUSTOMERS, MOST COMMERCIAL CUSTOMERS, THEY UNDERSTAND THEY'RE BEING IMPACTED FROM THE SAME THINGS THAT WE'RE BEING IMPACTED ON.

AND SO THEIR QUESTIONS ARE MORE OF JUST LET ME KNOW TIMING, LET ME KNOW WHAT MY FINANCIAL IMPACTS ARE.

SO WE DO HAVE EVENTS.

WE HAD, UH, AN EVENT BACK IN OCTOBER WHERE WE INVITED 200 OF OUR LARGEST CUSTOMERS.

WE HAD ABOUT A HUNDRED, UH, ATTEND.

TOMORROW, I'LL BE GIVING, UH, AN UPDATE TO, UH, THE SAME GROUP.

UM, AND WE CAN TALK THROUGH WHO'S GONNA BE ATTENDING, IF YOU'D LIKE SOME INFORMATION THERE.

UH, BUT WE ARE, WE INVITE THEM.

BUT THE ONE-ON-ONES THAT WE'VE BEEN HAVING, UH, BIGGEST FEEDBACK THAT WE GOT IS NOBODY LIKES A RATE INCREASE, BUT WE UNDERSTAND THAT YOU NEED TO RUN A BUSINESS.

THE ONLY THING WE ASK IS, YOU WORK WITH US SO WE CAN HELP BUDGET.

AND SO WE'RE CONTINUING TO WORK WITH EACH OF OUR, OUR COMMERCIAL CUSTOMERS ON THAT.

BUT AGAIN, WE WANNA MAKE SURE THAT WE'RE DOING EVERYTHING WE CAN TO ASSIST CUSTOMERS.

SO AS WE'RE GOING THROUGH THE PROCESS TO FINALIZE THE INTERLOCAL AGREEMENT, WE'RE STILL MAKING SURE THAT WE'RE SPEAKING TO CUSTOMERS, SEEING WHAT WE CAN DO TO LET THEM KNOW WHAT WE CAN DO FROM AN ARPA PERSPECTIVE.

SO FAR, WE'VE RECEIVED OVER 4,000 APPLICATIONS FOR THE ARPA FUNDS.

WE'VE RECEIVED 1800 PHONE CALLS.

AND AS RUDY MENTIONED, WE'VE BEEN ABLE TO KNOCK ON 200 DOORS.

AND WHEN WE KNOCK ON THOSE, THOSE DOORS, IT'S NOT JUST A MATTER OF SAYING, HEY, GO TO THIS PLACE AND YOU CAN GET INFORMATION ABOUT ARPA.

WE WILL SIT WITH THOSE CUSTOMERS IN THEIR HOUSE, OR IF THEY WANNA COME OVER TO THE EVENT THAT WE'RE AT AND FILL OUT THE APPLICATION FOR THEM, WE'RE NOT JUST TAKING TIME TO, UM, UH, MAKE SURE THAT THEY KNOW ABOUT IT.

WE'RE LETTING THEM KNOW ALL THE INFORMATION THAT THEY NEED, UH, TO PROVIDE.

WALKING THEM THROUGH THAT, AND THEN SEEING WHAT OTHER ASSISTANCE PROGRAMS WE CAN SET THEM UP IF WE NEED TO CONNECT THEM WITH SODS, IF WE NEED TO CONNECT THEM WITH ANY OTHER RESOURCES.

SO WE ARE DEDICATED TO MAKE SURE THAT WE'RE HELPING THEM FOR FUTURE BILLS, PASS BILLS, AND ANY OTHER RESOURCES THAT WE'VE CONNECTED WITH.

GONNA, UH, WE WANT TO, UH, I, I'M GONNA PROPOSE THIS.

WELL, THANK YOU.

UH, MY NAME'S REED WILLIAMS, UH, AND I AM THE CHAIR OF THE RACK.

AND, UH, JUST SO EVERYBODY WILL REMEMBER WHO WE ARE AND WHAT WE DO, BECAUSE THERE'S A LOT OF DIFFERENT IDEAS, UH, WE WORK UNDER THE DIRECTION OF, UM,

[00:30:01]

VICE CHAIR GONZALEZ.

THANK YOU VERY MUCH FOR BEING HERE.

WE WORK FOR THE BOARD OF TRUSTEES, AND WE PROVIDE INPUT.

WE HAVE NO AUTHORITY.

Y'ALL HAVE THE AUTHORITY.

TRUSTEES HAVE THE AUTHORITY.

WE HAVE NO POWER.

THESE FOLKS OVER HERE RUN THE BUSINESS.

OUR JOB IS TO GIVE CITIZEN INPUT.

AND AS YOU CAN IMAGINE, IT'S ALL OVER THE BALLPARK.

AND A LOT OF PEOPLE JUST AREN'T REAL HAPPY WITH HAVING TO DO THAT.

AFTER THEY GET INTO IT.

THEY HAVE AN AGENDA, THEY COME.

THAT'S NOT WHAT WE CAN TELL YOU.

UM, WE HAVE A LOT OF FOLKS THAT BELIEVE, UH, THAT THIS, UH, PROCESS, UH, ISN'T GONNA BE SUCCESSFUL.

UH, I THINK TOMORROW YOU'LL GET, UM, 20 PIECES OF PAPER.

YOU GOTTA ACTUALLY GET 40 PIECES OF PAPER.

EACH CASE, SOMEONE WILL VOTE YES OR NO ON THE RADIO CASE, AND YES OR NO ON THE, UM, ON THE, UH, REGULATORY, UH, ASSET.

NOW, PEOPLE SAY, WELL, REID, YOU ORIGINALLY SAID WE'RE NOT GONNA VOTE.

WELL, I DIDN'T THINK WE WERE, BUT THINGS CHANGE.

I'VE GOTTA GET PEOPLE FOCUSED ON MAKING A DECISION.

THERE'S A LOT OF PEOPLE THAT LIKE TO HAVE AN OPINION, BUT THEY DON'T WANNA MAKE A DECISION.

AND THEN WHEN THEY HAVE TO MAKE A DECISION, THEY DON'T WANNA BACK IT UP WITH A COMMENT.

WE'RE NOT GONNA DO THAT.

SO I'VE GOT SEVERAL FOLKS THAT REALLY UPSET ABOUT THAT.

BUT IF WE'RE GONNA DO OUR JOB AND GIVE YOU INPUT, WE GOTTA DO IT.

ALL RIGHT? SO WE'RE GONNA DO IT SIMPLE AS THAT.

NOW, WE DIDN'T PLAN ON THIS THING HAPPENING THIS FAST, BUT WHEN IT HAPPENED, WE HAD TO DO IT BECAUSE THAT'S WHAT OUR JOB WAS.

YOU KNOW, READ OUR CHARGE, TALKING WITH THE LEADERSHIP FROM, FROM THE BOARD OF TRUSTEES.

UH, AS GONZALEZ, WE PUT OTHER THINGS ASIDE.

WE BROUGHT THIS FORWARD.

I THINK WE'LL BRING IT TO A CONCLUSION, UM, A MONTH OR MORE BEFORE Y'ALL VOTE.

SO THESE FOLKS WILL BE ON THE RECORD AS HOW THEY FEEL.

I ENCOURAGE YOU TO TALK TO 'EM, TO CALL 'EM.

IF YOU KNOW 'EM, GET THE INPUT.

THEY'RE YOUR CITIZENS.

WE'VE GOT A VERY DIVERSE GROUP.

I THINK IT REPRESENTS THE COMMUNITY PRETTY WELL.

AND, AND I DON'T THINK YOU'RE GONNA FIND A LOT OF WHAT I WOULD CALL GROUP SPEAK HERE.

ALL RIGHT? WE, UH, ELOISE AND I, UNFORTUNATELY, SHE'S NOT WITH US ANYMORE.

I COULDN'T PREVENT THAT.

BUT WE'VE BEEN VERY CAREFUL NOT TO POLL PEOPLE, NOT TO ENCOURAGE PEOPLE TO DO ONE THING OR ANOTHER, BECAUSE YOU'VE GOT TO GET THE UNFILTERED, THE UNFILTERED OPINION OF YOUR CITIZENS.

AND THAT'S WHERE WE ARE NOW.

WE'LL VERY QUICKLY PIVOT TO THE OTHER TWO THINGS THAT I KNOW Y'ALL ARE INTERESTED IN, WHICH IS GENERATION PLANNING AND RATE DESIGN.

OKAY? THOSE ARE VERY BIG ISSUES, AND WE STARTED IN THAT, BUT WE HAD TO PRIORITIZE.

YOU DON'T ALWAYS GET TO DO WHAT YOU WANT TO DO WHEN YOU WANNA DO IT.

AS FAR AS THE GENERATION PLANNING, WE'RE GONNA PIVOT THE PROCESS A BIT.

AND THIS IS, LOOK, I'M SURE THIS IS GONNA BE VERY CONTROVERSIAL, AND I'M SURE MY PHONE PEOPLE ARE GONNA CALL AND YELL AT ME.

THAT'S FINE.

WHAT WE'RE GONNA DO IS WE'RE GONNA SET OUT A PLAN, OKAY? WE HAVE, UNDER THIS PROCESS, WE'VE BEEN HAVING TO TAKE INPUT FROM THE PEOPLE THAT DO IT, WHETHER IT'S BEN OR C P S, AND THAT'S FINE.

BUT THE PROBLEM, ONE OF THE PROBLEMS WE HAVE IS EVERYBODY'S TIPTOEING AROUND THESE ISSUES BECAUSE THEY'RE AFRAID OF BEING WRONG.

OKAY? I DON'T CARE ABOUT BEING WRONG, OKAY? BUT A LOT OF PEOPLE DO.

IT CAN COST 'EM THEIR JOB, IT CAN COST THEM ELECTION, IT CAN COST A LOT.

YOU'VE GOT TO START OUT BEING WRONG TO GET TO, RIGHT? AND WE WILL START OUT WITH A PLAN.

WE'VE GOT TO DECARBONIZE THIS COMMUNITY, BUT WE'VE GOTTA DO IT IN AN ORDERLY PROCESS.

THE PLAN THAT I'LL BE PUTTING OUT, WHICH SOME OF MY COMMUNITY MEMBERS WILL PROBABLY TEAR UP, WHICH IS FINE, IS GOING TO BE A PRETTY MUCH A TWO STEP PLAN.

THE FIRST STEP, IT'S GONNA TAKE ABOUT THREE YEARS.

NOW, THESE PEOPLE WILL ALL TELL ME HOW THIS WON'T WORK, AND THAT'S FINE.

THAT'S HOW WE LEARN.

BUT IN THE FIRST 18 MONTHS OF THOSE THREE YEARS, AND THIS THREE YEAR PERIOD IS RESHUFFLING FOR US TO GET IN A POSITION SO WE CAN DECARBONIZE YOU DON'T JUST WALK UP ONE DAY AND DECARBONIZE IN, IN THIS ENVIRONMENT WHERE WE'VE GOT AN UNSTABLE, UH, STATE AS FAR AS UTILITY.

WE'VE GOT AN ENERGY MARKET, WE'VE GOT A CAPACITY MARKET.

WE'VE GOT IN SOME PLACES A REGULATED RIGGED MARKET.

OKAY? SO WE DON'T REALLY HAVE A LOT OF STABILITY.

SO WE'VE GOTTA BE IN A POSITION TO DEAL WITH AN UNSTABLE ENVIRONMENT AND GET READY TO MOVE TO DECARBONIZATION THE FIRST 18 MONTHS.

WHAT WE'RE GONNA PROPOSE, THESE FOLKS WILL TELL US WHERE WE'RE WRONG.

WE'RE

[00:35:01]

I'M NOT SPEAKING FOR THE COMMITTEE, OKAY? 'CAUSE THEY'LL TEAR ME APART ON THIS.

THAT'S FINE.

BUT I'M TELLING YOU WHAT I'M GONNA START OUT WITH.

'CAUSE WE'VE GOTTA START OUT WITH SOME, WE'RE GONNA CONVERT, UH, SPRUCE TWO TO GAS.

NOW, IF WE CAN FIND SOMEBODY THAT'S A GAS SUPPLIER THAT WANTS TO DO THAT FOR US, WE'LL GIVE 'EM A OFF TAKE SO WE DON'T HAVE TO PUT OUR CAPITAL IN IT.

ALL THESE FIRST THREE YEARS ARE LOW CAPITAL.

KEEP THE CAPITAL LOW 'CAUSE WE DON'T KNOW WHAT'S COMING.

THIS NEXT THING IS WE'RE GONNA HAVE TO CLOSE THE OLD BRAWN PLANTS PRETTY QUICK, OKAY? AND, AND, AND THE THIRD THING IS, WE HAVE SAID FOR OVER A YEAR, WE NEED TO GO OUT AND CONTRACT FOR 900 MEGAWATTS OF SOLAR.

LET'S GET DOING IT.

WE HAD THE STUFF PERMITS PRESENTED TO US, I GUESS BEST AND FINAL IN JANUARY OF LAST YEAR, WE DONE ONE.

START 'EM AFTER THAT.

THAT'S, THAT'S FIRST 18 MONTHS.

THEN WITHIN THREE YEARS, WE NEED TO SHUT DOWN SPRUCE ONE COLD.

OKAY? WE NEED TO FRANKLY REEVALUATE SUMMERS, BUT PROBABLY BRING THOSE DOWN.

AND THEN WE PROBABLY NEED TO DO SOMETHING DIFFERENT LIKE WE'VE BEEN DOING IN THE, IN THE RENEWABLES.

AND THAT IS GET SOMEBODY TO BUILD A COMBINED CYCLE GAS TURBINE FOR US.

AND WE DO THE OFF TAKE ON 'EM.

AND WE WOULD ASK 'EM TO DO CARBON CAPTURE AND METHANE EXCURSION PROGRAMS. IF WE DO THAT IN, IN, I THINK IN THREE YEARS, WE CAN BE READY FOR A PATH OF 10 TO 12 YEARS TO GET DECARBONIZED BECAUSE WE HAVEN'T INVESTED A LOT OF MONEY, OKAY? WE HAVE GOT OURSELVES POSITIONED, SO WE'RE STABLE.

WE CAN TAKE CARE OF OUR COMMUNITY.

WE'LL HAVE ABOUT AN EQUAL AMOUNT OF QUICK START DISPATCHABLE POWER, ABOUT 40% RANGE.

EACH ONE OF THOSE, WE'LL STILL HAVE THE 15 TO 17 OF NUCLEAR AND OTHER THINGS THAT WE NEED TO BRING ON LIKE GAS ENGINES OR BATTERIES OR WHATEVER.

ONCE WE'RE IN THAT POSITION, WE CAN THEN BACK UP.

AND NOW A LOT OF PEOPLE SAY, OH MY GOODNESS, WE HAVE TO WRITE OFF THESE COAL PLANTS.

THAT IS A NON-CASH CHARGE.

WE'RE IN A CASH BUSINESS.

THOSE ARE DECISIONS THAT WERE MADE A YEAR AGO.

YOU CANNOT STAY WITH BAD DECISIONS WHEN THE WORLD CHANGES.

WE'VE GOTTA GO FORWARD.

WE'RE ON A CASH ONLY BASIS.

CASH IS WHAT THE ANALYSTS ARE GONNA LOOK AT.

CASH IS WHAT WE NEED TO LOOK AT.

AND CASH IS WHAT YOU'RE LOOKING AT.

IT'S ALL CASH.

SO DON'T GO START TALKING ABOUT, OH, WE GOTTA ACCELERATE DEPRECIATION, WRITE THIS OFF.

THAT DOESN'T MATTER BECAUSE THAT'LL NEVER GET US THERE.

WE'LL, HOLD ON TO BAD ASSETS.

WE'VE ALREADY SEEN INFORMATION THAT IN THE LAST THREE AND A HALF YEARS, THERE'S NO ABSOLUTELY NO ADVANTAGE FUEL WISE TO COAL OVER NATURAL GAS.

AND THERE IS A DISADVANTAGE ON OPERATING COST.

ALRIGHT, STOP.

WE'VE ALREADY BEEN TOLD OVER A YEAR AGO THAT WE CAN CONVERT, UH, SPRUCE TWO FOR $40 MILLION AND AVOID $60 MILLION IN WATER TREATMENT.

I DUNNO IF THAT'S STILL TRUE OR NOT.

IF IT'S NOT, THESE PEOPLE WILL CORRECT ME.

I'M TELLING YOU TODAY, WE GOTTA STAND UP, PUT SOMETHING OUT HERE, BE WILLING TO BE WRONG AND MOVE ON.

THAT'S WHAT WE'RE GONNA DO IN THAT.

IF YOU WANT TO TALK ABOUT RATE DESIGN, I'M MORE THAN HAPPY TO TALK ABOUT THAT.

BUT I THINK SOMETHING'S GONNA BUZZ HERE IN A MINUTE.

ANY QUESTIONS? YOU DON'T HAVE A TIMER READ.

IF YOU WANNA JUST GIVE US A GLIMPSE INTO THAT PROCESS.

OKAY? RATE DESIGN IS TRICKY.

I DON'T THINK YOU DO RATE DESIGN WHEN YOU'RE DOING A RATE INCREASE, PEOPLE SIMPLY CANNOT TAKE, KEEP UP WITH A THREE DIMENSIONAL PROBLEM.

YOU'RE MOVING ACROSS, YOU KNOW, VOLUME AND PRICE THIS WAY.

NOW YOU'RE GONNA PUT IN A DIMENSION OF DIFFERENT, UH, STEP FUNCTIONS AND HOW YOU'RE GONNA DO IT.

SO I BELIEVE THAT THERE NEEDS TO BE A VERY SERIOUS DISCUSSION.

A LOT OF STUDY AND, AND PERHAPS SOME, UH, SIMULATIONS.

THEY CALL 'EM PILOTS.

I CALL 'EM SIMULATIONS ON HOW WE DO THAT.

WE NEED TO MAKE SURE THAT WE'VE GOT THE TECHNOLOGY AND THE INFORMATION SYSTEM THAT WILL WORK TO DO SOME OF THE RATE DESIGNS.

OKAY? I DON'T KNOW THAT WE DO, BUT IT IS, IT IS ONE OF THE TWO THINGS THAT WE'LL PIVOT TO AND WORK ON BECAUSE WE'VE GOT WAYS, THERE ARE CERTAIN RATE DESIGNS THAT'LL HELP US SAVE POWER.

THERE ARE CERTAIN RATE DESIGNS THAT'LL, THAT'LL HELP INDIVIDUAL PEOPLE DO WHAT THEY WANT TO DO WITH THEIR RATES, OKAY? SO THEY CAN KIND OF TAILOR WHAT THEY WANT TO.

THIS IS ALL A LEVEL OF COMPLEXITY WE HAVEN'T DEALT WITH BEFORE.

AND FRANKLY, IF YOU, YOU CAN'T JUST PROMOTE SOMETHING UNLESS YOU'VE GOT SOME TYPE OF, UM, OF BASE TO PROMOTE IT ON.

SO WE'RE, A LOT OF THE STUDY IS GONNA BE KIND OF BORING AS TO WHAT DO WE HAVE THE CAPACITY TO DO BEFORE WE DO WHAT WE WANT TO DO.

ANYTHING ELSE? QUESTIONS? ALRIGHT, WE'LL GO AHEAD AND QUEUE UP.

UM, WE'LL START OUR DISCUSSION NOW.

THANK YOU VERY MUCH.

WILLIAMS. UM, ERIC, DID YOU WANT TO MAKE ANY CLOSING COMMENTS BEFORE WE START OUR PRESENT OUR DISCUSSION? UH, AND I THINK THAT'S A GOOD PLACE TO STOP.

UH, CHAIR

[00:40:01]

UM, SO, UH, THANK YOU REED FOR BEING HERE AS WELL AND TO GIVING US A HIGH LEVEL GLIMPSE INTO THE COMPLEXITY OF THE ISSUES THAT THE RACK WAS CHARGED WITH.

THE TWO PRIMARY ONES BEING GENERATION PLANNING AND RATE DESIGN AND THE PRESENTATION, THE DISCUSSION THAT YOU JUST STARTED IS A GLIMPSE INTO HOW DIFFICULT THAT DISCUSSION IS GOING TO BE AND SOME OF THE OPTIONS THAT PEOPLE ARE GONNA BE LOOKING AT.

SO IT'S HELPFUL, UH, CONTEXT.

THE OTHER PART OF THIS OBVIOUSLY IS THE RATE REQUEST.

AND, AND WE ARE NOW ON OUR THIRD B SESSION FOCUSED ON THIS MATTER.

AND, UM, IT'S IMPORTANT THAT OBVIOUSLY WE ENSURE THAT WE'VE DONE OUR DUE DILIGENCE TO PROCESS THIS REQUEST.

UH, AND SO THIS IS, UH, A MEETING FOR US TO POSE QUESTIONS AND RECEIVE EVEN MORE CLARITY FROM OUR ENERGY UTILITY.

SO I DO LOOK FORWARD TO THE DISCUSSION.

I'M SURE THERE ARE, ARE HANGING QUESTIONS THAT WE HAVEN'T BEEN ABLE TO ADDRESS IN THE PREVIOUS MEETING.

SO LEMME GET RIGHT INTO DISCUSSION.

UH, AND LEMME START WITH COUNCIL MEMBER MCKEE RODRIGUEZ.

FOR C P SS ENERGY AND, AND THE CITY, YOU KNOW, FINANCIALLY, YOU KNOW, THE, THERE WILL BE, YOU KNOW, RISK TO, TO OUR OUR CREDIT RATING.

UH, I CAME INTO THIS MEETING THINKING LIKE THIS IS OUR THIRD ONE IN THREE WEEKS.

I DON'T KNOW IF I HAVE ANY FOLLOW UP QUESTIONS, BUT I THINK JUST NOW WE HEARD A LOT OF, UH, VERY INTERESTING THINGS AS IT RELATES TO GENERATION.

UM, AND I LOOK, I LOOK FORWARD TO CONTINUED CONVERSATION ABOUT THAT.

UM, BUT I'LL BE BRIEF.

UM, WE'RE GONNA BE HOSTING OUR TOWN HALL ON JANUARY 10TH, WHICH IS ABOUT THREE DAYS BEFORE THE VOTE.

AND I DON'T KNOW IF I FEEL, UH, NECESSARILY COMFORTABLE GIVING RESIDENTS ONLY THE SHORT TIME PERIOD.

AND WHEN WE TALK ABOUT WHAT WE'RE ASKING PEOPLE TO DO, I THINK THE, THE CONSENSUS HAS BEEN THE WAY THAT YOU GO ABOUT IT, GETTING YOUR END GOAL IS VERY IMPORTANT.

AND SO EVEN THOUGH IT MAY NOT BE THE CASE, EVEN THOUGH WE MAY BE GOING INTO THESE TOWN HALLS AND WE MAY TAKE, UH, WE MAY COME BACK ON IT THREE DAYS AFTER THE LAST OR THE DAY AFTER THE LAST, UH, TOWN HALL, AND WE'RE MAKING OUR DECISION BASED OFF OF THAT, THE FEELING WILL BE THAT, YOU KNOW, OH, THIS IS THREE DAYS BEFORE THE VOTE, YOUR DECISIONS ARE ALREADY MADE UP AND WE DON'T WANNA, UM, WE DON'T WANNA PERPETUATE THAT IDEA.

AND SO, UM, I'M WONDERING IF WE CAN MOVE FORWARD WITH THE REGULATORY ASSET FOR FUEL COSTS, BECAUSE I KNOW THAT ONE IS VERY TIME SENSITIVE, UM, ON THE REGULAR SCHEDULE DATE.

UM, BUT POTENTIALLY MOVE THE RATE INCREASE, VOTE BACK A LITTLE BIT.

POSTPONE THAT ONE BECAUSE THAT ONE WOULDN'T TAKE PLACE UNTIL WHEN CAN, DOES SOMEBODY REMEMBER THE DATE? IT WAS MARCH? WHEN WAS IT? MARCH 1ST? MARCH 1ST.

SO SINCE IT WOULDN'T TAKE PLACE UNTIL MARCH 1ST, IS IT POSSIBLE THAT WE COULD DELAY THAT A FEW WEEKS SO THAT PEOPLE REALLY FEEL HEARD AND WE CAN REALLY MAKE DECISIONS BASED OFF OF COMMUNITY FEEDBACK? JUST, IS THAT A POSSIBILITY? CAN WE HAVE THIS? WOULD YOU LIKE US TO HAVE IT BE SOONER? SO, WELL, I, YEAH, LET ME, LET ME SAY A COUPLE THINGS.

THE, THE MARCH 1ST, MARCH 1ST, UH, DATE, IT TAKES IT, WE DON'T JUST IMPLEMENT A RATE CASE FROM ONE DAY TO THE NEXT.

IT TAKES WEEKS FOR US TO GO IN AND CHANGE THE RATE FOR DIFFERENT RATE CLASSES.

IT'S PROBABLY A FOUR TO SIX WEEK PROCESS.

SO THAT'S WHY THE MARCH 1ST DATE IS RELEVANT BECAUSE IF WE PUSH IT BACK, YOU KNOW, THEN WE'RE IN APRIL OR, OR POTENTIALLY MAY.

UM, WHAT I'D SAY IS THAT, YOU KNOW, ALL OF THESE DECISIONS ARE TIMELY.

IT'S THE REGULATORY ASSET CERTAINLY IS ONE COMPONENT OF IT.

BUT, YOU KNOW, UH, COUNCILMAN, YOU KNOW, OUR FINANCIAL CONDITION IS STRESSED.

IT'S SHOWING UP IN OUR FINANCIALS, IT'S SHOWING UP IN OUR OPERATIONAL METRICS.

YOU KNOW, WE'RE AN ORGANIZATION THAT'S DOING THE BEST WE CAN TO KEEP UP, BUT OUR PERFORMANCE IS NOT TRENDING IN THE RIGHT DIRECTION.

AND THAT'S NOT JUST BECAUSE OUR PEOPLE AREN'T DOING THEIR JOBS.

IT'S BECAUSE, YOU KNOW, WE'VE GOT SOME LIMITATIONS AND WE'RE HAVING TO PRIORITIZE, YOU KNOW, WHAT, WHAT WE CAN SPEND MONEY ON AND WHAT WE CAN'T.

SO I, I WOULD JUST RESPECTFULLY REQUEST THAT COUNCIL STAYS ON, ON, ON, ON THE, THE APPROACH THAT WE'RE ON.

I, I RECOGNIZE THAT YOU FEEL RUSHED, YOU KNOW, UH, WE ARE DOING EVERYTHING THAT WE CAN TO GET IN FRONT OF AS MANY MEMBERS OF THE COMMUNITY AS POSSIBLE.

UH, BUT THE TIMELINESS IS IMPORTANT TO, TO KEEPING C P SS ENERGY, YOU KNOW, STRONG AND HEALTHY AND, AND, AND DOING WHAT WE NEED TO DO.

SO I, I WOULD JUST, YOU KNOW, THAT WOULD BE MY RESPONSE TO YOUR REQUEST, SIR.

SO MY RESPONSE TO THAT WOULD BE THAT I RECEIVED, MY OFFICE, RECEIVED A NUMBER OF CALLS AFTER THE TEXT, MY DMS WERE FLOODED, AND THE RESPONSE THAT I GOT WASN'T NECESSARILY THAT, YOU KNOW, WE UNDERSTAND THAT YOU HAVE TO RAISE INCREASES AS LONG AS YOU WORK WITH, THAT'S NOT THE RESPONSE WE GOT.

WE GOT A LOT OF PEOPLE WHO WERE VERY CONCERNED.

AND SO US MOVING FORWARD IS ALL FINE AND DANDY, BUT YOU HAVE TO BE OKAY WITH A NO VOTE AS WELL.

AND SO IF THE RESULT OF THE JANUARY 13TH VOTE IS GONNA BE A NO ON A RATE INCREASE, IS THAT BETTER THAN DELAYING THE VOTE TWO WEEKS? SIR? I THINK ANY, ANY NEGATIVE VOTE ON THIS ISSUE HAS IMPLICATIONS

[00:45:01]

UH, YOU KNOW, IF THAT'S WHERE THIS ENDS UP, I THINK A DELAY WILL, WILL HAVE EQUAL RISK.

SO I'M JUST BEING HONEST WITH YOU.

UH, I KNOW THIS IS A DIFFICULT CONVERSATION.

I KNOW THE COMMUNITY IS, IS IS HAVING A HARD TIME, YOU KNOW, WITH, WITH THE CONVERSATION.

I CAN TELL YOU, YOU KNOW, LAST NIGHT WHEN AT, AT OUR TELE-TOWN HALL, THERE WERE 4,700, UH, OF OUR CUSTOMERS WHO, WHO TUNED IN? AND, UH, AND WE TOOK, I DON'T KNOW, 15, 20 QUESTIONS DURING THE HOUR, BUT IT WAS WELL ATTENDED.

SO, UM, YOU KNOW, MY, MY GOAL IS TO, TO EDUCATE.

UH, BUT YOU KNOW, WE ARE A MUNICIPALLY OWNED UTILITY.

WE ARE YOUR ASSET AND YOU KNOW, THIS COUNCIL HAS TO DECIDE WHETHER OR NOT YOU'RE GONNA INVEST IN US OR NOT, UH, TO ALLOW US TO DO OUR JOB.

AND, YOU KNOW, WE'VE BEEN TALKING ABOUT A RATE INCREASE, QUITE FRANKLY, FOR, YOU KNOW, BETTER PART OF THREE YEARS INTERNALLY.

WE'VE BEEN STRESSED SIGNIFICANTLY FOR THE LAST COUPLE YEARS, BUT THE PANDEMIC HAS PUSHED THIS OFF.

SO, YOU KNOW, IT, OUR REQUEST IS TIMELY AND IT'S NECESSARY.

I THINK MY POINT STANDS THAT MAYBE THIS CONVERSATION HAS BEEN HAPPENING INTERNALLY.

THE MEDIA HAS ALSO BEEN TALKING ABOUT THE, THE POTENTIAL FOR A RATE INCREASE FOR A VERY LONG TIME.

AND I THINK ONCE THOSE CONVERSATIONS WERE MADE PUBLIC, IT SHOULD, I THINK THAT'S WHEN COMMUNITY ENGAGEMENT SHOULD HAVE BEGAN.

THAT'S WHEN THE TOWN HALL SHOULD HAVE BEGAN.

THEY HAVEN'T.

NOW WE'RE AT THE POINT WHERE WE'RE GONNA HAVE, UH, A COUPLE OF DECEMBER TOWN HALLS AND THEN WE'RE GONNA HAVE A BREAK WHERE NOTHING IS GONNA REALLY BE ABLE TO HAPPEN.

AND THEN WE'RE GONNA HAVE A FEW MORE TOWN HALLS AND THEN WE TAKE AN IMMEDIATE VOTE.

AND I GET THAT THE IMPLICATIONS OF A A NO VOTE WOULD HAVE VERY HARSH CONSEQUENCES.

THE COMMUNITY NEEDS TO UNDERSTAND THAT AS WELL.

AND IF THEY DON'T, BY THE TIME WE TAKE THIS VOTE, I THINK THAT IS SIGNIFICANT.

COUNCIL MEMBER MCKEE RODRIGUEZ.

COUNCIL MEMBER COURAGE.

UM, I'D LIKE TO ASK, UH, COREY TO COME UP 'CAUSE I KNOW HE'S THE NUMBERS GUY OVER THERE AND I HAD SOME QUESTIONS ABOUT THE NUMBERS.

THANKS, COREY.

UM, THE PROPOSAL IS, AND, AND, AND I THINK IT'S IMPORTANT TO REVIEW THESE PUBLICLY RIGHT NOW IN THIS B SESSION.

THE PROPOSAL IS FOR A 3.85% RATE HIKE.

AND THAT, UH, IN EFFECT, UH, AFFECTS THE RATE PAYMENT, UH, TO BE ABOUT 3.3%.

AND THOSE NUMBERS ARE, UH, IT'S GOING TO GENERATE, IF WE START ON THE SCHEDULE, YOU HAVE APPROXIMATELY $72.3 MILLION FOR THIS COMING YEAR, BECAUSE WE'LL START IN MARCH, IT'LL BE ABOUT 66, 60 $7 MILLION.

IT'LL BE 11 MONTHS WORTH, BUT OVER 12 MONTHS.

YES, THAT'S CORRECT.

AND THAT 3.3% THAT YOU CITED IS A COMBINATION OF BOTH THE BASE RATE COMPONENT PLUS THE FUEL COMPONENT THAT WE'RE SUGGESTING FOR THE REGULATORY ASSET, RIGHT? AND, AND, UH, THE LARGER COMPONENT IS $3 AND 84 CENTS A MONTH ON AVERAGE ON AN AVERAGE BILL.

THAT'S CORRECT.

AND THEN ANOTHER DOLLAR 26 FOR THE REGULATORY ASSET.

SO A TOTAL WE'RE SAYING IS ON AN AVERAGE BILL, AND NOT EVERYBODY'S AVERAGE, BUT WE'RE TALKING ABOUT $5 AND 10 CENTS PER MONTH.

SO YOU'RE GONNA GENERATE 72.3 MILLION.

WHAT ARE WE GOING TO DO WITH 72.3 MILLION? BECAUSE THAT'S THE QUESTION I GET.

KNOW, TRANSMISSION OPERATORS, CONTROL ROOM OPERATORS, YOU KNOW, ENGINEERS, FOLKS OUT IN THE FIELD WHO ARE DOING THE DAY-TO-DAY.

, I HEAR PEOPLE OUT, UH, ON THE OUTSIDE SAYING, OH, THIS IS JUST MORE MONEY FOR C P S TO GIVE BONUSES TO THEIR FAT CAT EMPLOYEES.

OR FOR THE CITY TO GO AHEAD AND RAISE FEAST, RAISE MORE MONEY FOR THE CITY.

'CAUSE THEY GET A PERCENTAGE.

AND YOU KNOW, WHAT, WHAT ARE THE NEEDS? WHAT ARE WE GONNA DO WITH THAT? $72.3 MILLION? YEAH.

THANK YOU, COUNCILMAN.

SO IT'S THE, THE FOUR KIND OF KEY ELEMENTS THAT WE'VE TALKED ABOUT.

UM, IT IT'S NOT FOR, YOU KNOW, EXECUTIVES OR BONUSES, THINGS LIKE RUDY SAID, IT'S GOING TOWARDS INFRASTRUCTURE RESILIENCY.

SO THAT FROM A CUSTOMER PERSPECTIVE, YOU'RE SEEING INVESTMENTS IN OUR GENERATING ASSETS TO BETTER MAKE THEM RESILIENT AND EXTREME WEATHER INVESTMENTS IN OUR DISTRIBUTION NETWORK, UH, IN, IN ORDER TO MAKE IT MORE RESILIENT TO EXTREME WEATHER.

A LOT OF THAT INVESTMENT INTO THE INFRASTRUCTURE.

AND WHEN IT COMES DOWN TO IT, FOLKS WANT RESILIENCY AND RELIABILITY.

THAT'S THE INVESTMENT WE'RE KEEPING UP WITH.

IT'S ALSO GOING TOWARDS OUR INVESTMENT IN TECHNOLOGY, RIGHT? WE'VE TALKED A LOT ABOUT HOW OUR BACK OFFICE SYSTEMS, OUR CONTROL SYSTEMS, ALL THOSE ITEMS ARE, YOU KNOW, IN SOME CASES 20 YEARS OLD, WHICH IS INCREDIBLY OLD, ESPECIALLY FOR A UTILITY OUR SIZE.

SO PART OF THAT $73 MILLION IS INVESTING INTO THAT.

UH, RUDY TALKED A LOT ABOUT GROWTH, RIGHT? SO A COMPONENT OF THAT INCREMENTAL SPEND OR INCREMENTAL REVENUE GOES TOWARDS KEEPING UP WITH GROWTH OF THE ENTIRE SERVICE TERRITORY, WHICH WE HAVE AN OBLIGATION TO SERVE.

AND THE LAST COMPONENT REALLY IS INVESTING IN PEOPLE.

RUDY MENTIONED EARLIER THAT WE ARE DOWN STAFFING, AND IT'S FOR THE FRONTLINE FOLKS.

IT'S THE, YOU

[00:50:01]

UH, AND THAT IS A REAL CRITICAL NEED.

SO WHEN YOU TALK ABOUT WHERE'S THE MONEY GOING, IT IS GOING TO THOSE FOUR KEY AREAS AND MAKING THE INVESTMENTS DIRECTLY INTO THAT AND, AND NOTHING MORE.

AND THAT'S THE FOCUS.

I HEARD WHAT YOU SAID.

I WANNA TRANSLATE THAT A LITTLE BIT TO THE SURE.

TO THE AVERAGE CONSUMER, WHAT YOU'RE SAYING IS YOU'RE GONNA PUT, UH, QUITE A BIT OF MONEY INTO MAKING SURE THAT THE ENERGY GENERATING FACILITIES ARE OPERATIONAL, THEY'RE GONNA OPERATE IN, UH, WORSE WEATHER AND THEY'RE GONNA CONTINUE TO SUPPLY US ENERGY.

AND THEN YOU'RE SAYING THAT WE'RE GONNA BE IMPROVING THE TRANSMISSION OF THIS ENERGY THAT, UH, I, I KNOW A LOT OF PEOPLE SAY, WELL, I GET MY LIGHTS OUT, OR THE ENERGY FLICKERS AND THINGS OF THAT.

SO A LOT OF THE MONEY'S GOING TO IMPROVE THAT.

UH, AND THEN WE HAVE PEOPLE WHO WORK FOR US AND WE NEED TO PAY THEM BECAUSE WE'RE SEEING, I KNOW THE CITY'S SEEING THIS.

I KNOW EVERYBODY IS FEWER PEOPLE COMING TO APPLY FOR JOBS.

WE HAVE A LOT OF OPENINGS, I THINK RUDY SAID RIGHT AT THE VERY BEGINNING.

UH, THEY'RE HAVING PEOPLE LEAVE ALL THE TIME FOR BETTER OPPORTUNITIES.

AND THIS IS A SIGNIFICANT FUNCTION OF THIS COMMUNITY TO SUPPLY ENERGY.

AND IF WE DON'T HAVE THE RIGHT, UH, ENGINEERS OR TECH PEOPLE OR PEOPLE WITH THE SKILL TO GO OUT AND CLIMB THE POLES AND HANG THE WIRES AND, AND CORRECT ALL OF THE PROBLEMS, THEN WE'RE NOT GONNA BE ABLE TO PROVIDE THE FUNCTION THAT EVERYBODY EXPECTS.

SO THIS IS PREDOMINANTLY WHERE ALL OF THAT MONEY IS GOING TO CORRECT.

IS THAT CORRECT? YEAH, THAT'S CORRECT, SIR.

I JUST WANT TO CLARIFY THAT IN MY OWN MIND, BECAUSE I STAND WITH THIS RECOMMENDATION AND I'LL BE SUPPORTIVE OF IT.

AND I THINK PEOPLE IN MY COMMUNITY WILL SUPPORT IT WHEN THEY UNDERSTAND WE'RE GOING TO IMPROVE THE SYSTEM, KEEP IT RELIABLE, AND KEEP IT PROVIDING THE ENERGY THAT WE EXPECT AT $5 A A MONTH MORE FOR THE AVERAGE CONSUMER.

THANK YOU, COUNCILMAN.

COUNCIL MEMBER COURAGE.

COUNCIL MEMBER GRO.

WILLIAMS, UH, COMMITTED THAT, THAT THAT WAS THE NEXT, YOU KNOW, ONE OF THE TWO ISSUES THAT WE'RE GONNA PIVOT TO, UH, I'LL, I'LL SAY THIS, AND I KNOW WE'VE, COUNCILMAN PERRY AND I HAD A NICE EXCHANGE ABOUT THIS A COUPLE OF MEETINGS AGO.

UM, SO LET ME START WITH WHAT I LIKE, I LIKE THE IDEA THAT YOU'RE DOING OUTREACH AND, UH, GOING DOOR BY DOOR.

I THINK THAT'S AN EXCELLENT IDEA.

THANK YOU FOR THE COUNCIL DISTRICT ENGAGEMENT.

UM, I HOPE YOU INCLUDED ALL THE OFFICE HOURS THAT WE HAVE IN YOUR GRAND TOTAL.

IF NOT, I'D LIKE TO SEE IT INCREASE BECAUSE YOU ARE OUT IN MY OFFICE MEETING WITH MY RESIDENTS AND YOUR TEAM WAS THERE THIS MORNING AT MY SENIOR MEETING FOR ARPA.

SO I, I REALLY APPRECIATE THAT AND, AND HOW YOU'RE TRYING TO CHANGE THE MESSAGE THAT WE HAD, UM, AND BUILD THAT TRUST THAT, UH, MY COUNCIL COLLEAGUE, UH, BROUGHT UP THAT WHAT YOU HAVE TO DO.

SO I, I LIKE THIS START.

I THINK IT'S A VERY GOOD BEGINNING.

IF WE COULD GET, IF I COULD GET AN UPDATE AND MY COUNCIL COLLEAGUES MIGHT WANT ONE TO, IS HOW MANY RESIDENTS HAVE SIGNED UP FOR THE AFFORDABILITY PLAN OR A PAYMENT PLAN? AND THEN AGAIN, AN UPDATE ON WHAT THE DISCONNECTIONS ARE.

UM, I THINK AS WE TALK ABOUT UTILITY ASSISTANCE, AND THIS IS WHY I UNDERSTAND THIS RATE AND WHY WE NEED THE RATE INCREASE, THERE ARE SO MANY AGENCIES OUT THERE HELPING WITH UTILITY ASSISTANCE.

I WANNA MAKE SURE THAT WE HAVE AN IDEA OF WHO'S HELPING WITH UTILITY ASSISTANCE.

SO IF WE COULD GO JUST A LITTLE LOWER, AND I BET YOU THE BOARD ASKED THE SAME THING, LET'S GO A LITTLE LOWER.

BUT, UM, BECAUSE NOT ONLY THOSE HELPING WITH UTILITY ASSISTANCE FOR ARPA, BUT HAVE WE, HAVE Y'ALL IDENTIFIED THE AGENCIES THAT HELP WITH UTILITY ASS ASSISTANCE BEFORE THE PANDEMIC? DO WE HAVE THAT IN IN THESE FIGURES? YES, MA'AM.

WE CAN GET THAT DISTRICT BY DISTRICT.

OKAY, GREAT.

'CAUSE I, I JUST WANNA MAKE SURE THAT WE'RE DOING THAT BECAUSE I HAVE A LOT OF, UH, MIDDLE CLASS FAMILIES.

I HAVE A LOT OF, UM, SENIORS THAT DON'T MEET THE REQUIREMENTS BECAUSE THEY'RE MAKING SACRIFICES SOMEWHERE ELSE TO PAY THEIR C P S BILL SO THAT THEY DON'T FALL BEHIND.

AND SO I THINK THAT WE NEED TO CONSIDER ON HOW WE MAKE THIS AFFORDABLE AND HOW WE DO THIS, UM, TO, TO MAKE IT FAIR FOR THOSE WHO HAVE BEEN PAYING AND KEEPING UP WITH THEIR BILL.

UM, THE OTHER QUESTION THAT I HAVE THAT KIND OF CAME FROM WHAT, UM, WHAT WAS SAID EARLIER IS THE, THE DESIGN RATE CHANGES.

UM, IF WE DO THIS RATE INCREASE, AND I, I UNDERSTAND WE CAN'T DO THE DESIGN RATE CHANGE AND THE RATE INCREASE, IS IT POSSIBLE FOR US TO DO THIS RATE INCREASE AND THEN GET OUR RAC COMMITTEE TO FOCUS ON A DESIGN RATE CHANGE SO THAT MAYBE WE DON'T HAVE TO COME BACK IN TWO YEARS AND DO ANOTHER RATE INCREASE? WELL, COUNCILWOMAN, I THINK THE, AN ANSWER TO YOUR FIRST QUESTION IS ABSOLUTELY.

I I THINK CHAIRMAN, UH,

[00:55:01]

YOU KNOW, THE TWO YEARS IS AGAIN, A PLACEHOLDER.

YOU DON'T KNOW, YOU KNOW, MAYBE NEXT SUMMER WE HAVE A REAL HOT SUMMER AND REVENUES LOOK DIFFERENT.

MAYBE, YOU KNOW, UH, THE WHOLESALE MARKET CHANGES AND, YOU KNOW, OUR POWER PLANTS ARE MORE VALUABLE.

THERE'S ALL KINDS OF THINGS THAT CAN HAPPEN THAT CAN MOVE, YOU KNOW, THE ANY PROPOSED, YOU KNOW, NUMBER UP OR DOWN, DEPENDING UPON, UH, MARKET CONDITIONS.

AND THEN IF YOU DO A RATE REDESIGN, YOU KNOW, WHICH COULD BE REVENUE NEUTRAL, THAT DOESN'T MEAN, YOU KNOW, WHEN YOU DO RATE REDESIGN, SOMEBODY PAYS MORE AND SOMEBODY PAYS LESS.

THAT'S THE WHOLE IDEA OF DOING A RATE DESIGN.

SO EVEN A REVENUE NEUTRAL RATE CASE, YOU KNOW, OF A RATE CONSIDERATION OF SOME KIND, COULD MEAN A RATE INCREASE FOR SOMEBODY, RIGHT? MM-HMM.

SO, UM, SO WE'RE GONNA, WE'RE WE'RE COMMITTED TO WORKING WITH THE RAC AND OUR BOARD, UH, TO LOOK AT ALL OF THAT BECAUSE WE KNOW THAT IS CERTAINLY A PRIORITY OF OUR COMMUNITY.

AND THE OTHER INPUT THAT I WANTED TO GIVE, UH, AS YOU GO OUT TO OUR CONSTITUENTS IS WHEN, WHEN YOU HAVE ON THIS, WHAT INVESTMENTS DOES THE RATE INCREASE COVER? AND YOU HAVE A GREAT LIST, TECHNOLOGY GROWTH PEOPLE, THAT'S TOO VAGUE.

UH, AGAIN, I'LL, I'LL ECHO WHAT, UH, COUNCILMAN COURAGE SAID.

YOU NEED TO PUT IT INTO TERMS THAT MY RESIDENTS ARE GONNA UNDERSTAND.

IF YOU SAY THAT'S LESS CREW MEMBER TEAMS, YOU KNOW, COMING DOOR TO DOOR OR GOING TO EVENTS, IF YOU TELL THEM THAT'S ONE LESS TRUCK GOING OUT INTO THEIR NEIGHBORHOOD TO, TO, THEY'LL UNDERSTAND THAT.

GRADES ARE AT RISK, RIGHT? AND WHAT THAT MEANS IS SENDING HUNDREDS OF MILLIONS OF DOLLARS, POTENTIALLY, RIGHT? OR TENS OF MILLIONS OF DOLLARS TO NEW YORK AND CHICAGO, AND THEN NEVER SEEING THEM AGAIN, RIGHT? UM, THAT'S GONNA BE A HARD THING FOR ME TO, AND MY CONSTITUENTS TO TALK ABOUT, BUT YOU GOT MY COMMITMENT TO, TO TALK ABOUT IT, RIGHT? UM, AND IT'S GONNA BE A DIFFICULT ONE.

SO, UM, CALL TIMES WAIT TIMES.

PLEASE GET MORE SPECIFIC.

AND, AND I KNOW IT'S HARD FOR YOU GUYS TO SAY, BUT JUST RETAINING TALENT, YOU KNOW, SOME OF MINE ARE GONNA BE LIKE, WELL, WE DIDN'T LIKE THAT LAST PERSON ANYWAY, SO, UH, SO PLEASE GET MORE SPECIFIC AND WHAT RESONATES WITH OUR RESIDENTS.

SO THANK YOU, COUNCILMAN.

I, I, I AM VERY SENSITIVE.

LOOK, I WANNA BE, I WANT C P SS ENERGY TO BE GOOD PARTNER WITH THE COMMUNITY.

WE SPENT A LOT OF TIME TALKING ABOUT THAT.

AND I, I WANNA BE SENSITIVE TO, YOU KNOW, THE, THE, THE FEELING OF, YOU KNOW, HERE'S WHAT HAPPENS IF YOU DON'T APPROVE IT.

THERE ARE SOME REAL RAMIFICATIONS.

WE, WE, WHICH WE JUST TALKED ABOUT, AND WE SHOULD, YOU KNOW, IN THIS ROOM, BUT OUT IN THE COMMUNITY, OUR GOAL IS TO SERVE OUR CUSTOMERS.

AND, UM, YOU KNOW, SO LESS, YOU KNOW, I DON'T WANT IT TO BE LESS LINEMEN.

AND QUITE FRANKLY, YOU KNOW, I'LL, I'LL FIND LESS OF SOMETHING ELSE AND PUT MORE LINEMEN, UH, YOU KNOW, IN THE STREETS IF I GOTTA MAKE THAT DECISION.

UM, YOU KNOW, SO, SO I THINK THERE'S A WAY TO HAVE THE CONVERSATION, SO THEN I DON'T WANNA SOUND THREATENING AND THAT'S WHY IT'S WORDED THE WAY IT'S WORDED.

BUT I, I, I GET YOUR POINT.

AND, UH, WE WILL DO, WE WILL, WE WILL WORK REAL HARD TO MAKE SURE THAT, UH, OUR, OUR MESSAGE RESONATES WITH OUR, WITH OUR CUSTOMERS.

THANK YOU, COUNCILWOMAN GRO, UH, COUNCIL MEMBER PIAS, YOU KNOW, AS, AS WE WERE, AS WE'RE SITTING HERE, IT OCCURS TO ME THAT, UM, THAT WE'VE ALL SPENT A LOT OF TIME PILING ON C P SS AND, YOU KNOW, Y'ALL'S, UH, DEFICIENCIES OVER THE PAST UMPTEEN YEARS AS FAR AS BEING ABLE TO GET THE MESSAGE OUT RIGHT AND WIN HEARTS AND MINDS AND LET PEOPLE KNOW ABOUT HOW IMPORTANT IT IS THAT YOU GUYS ARE TO OUR LOCAL ECONOMY AND OUR ABILITY TO DELIVER SERVICES.

AND ALSO, UM, HOW IMPORTANT IT'S THAT EVERYBODY REALLY UNDERSTAND, UH, THE COMPLEXITY OF THIS ORGANIZATION.

AND WE'RE, WE EXCEL AT PILING ON, UH, YOU, RUDY, AND YOUR TEAM, BUT, UM, I'M LISTENING TO YOU, AND THE ONLY THING I CAN THINK OF IS THAT I, I OWN SOME OF THAT TOO, RIGHT? UM, AND THAT IT'S MY RESPONSIBILITY ALSO TO TELL THAT STORY AND TO BRING PEOPLE TO THE TABLE AND, YOU KNOW, REPEAT OVER AND OVER AND OVER AGAIN.

UH, DIFFICULT TRUTHS, RIGHT? UM, AND TO THE EXTENT THAT I'VE PILED ON OVER THE PAST TWO MONTHS, WITHOUT ACCEPTING THAT RESPONSIBILITY, UH, PLEASE ACCEPT MY APOLOGY.

UM, I, I, I, I THINK WE'RE PARTNERS IN THIS.

UM, AND, UH, MY TEAM HAS BEEN WORKING REALLY HARD TO, YOU KNOW, TELL HOAS WHY WE'RE HERE, WHERE WE'VE BEEN, RIGHT? WHERE WE PLAN ON GOING, INVITING THEM TO DIFFERENT EVENTS.

UM, AND OBVIOUSLY, YOU KNOW, WE CAN, WE CAN ALWAYS DO BETTER, AND WE'RE LOOKING FOR WAYS TO DO BETTER.

UM, I'VE BEEN WATCHING Y'ALL'S, YOU KNOW, UH, MATERIALS GO OUT.

I'VE BEEN SEEING THE LITERATURE, YOU'VE BEEN SENDING THE TEXTS, THE EMAILS, REALLY WORKING REALLY HARD TO, TO COVER ALL YOUR BASES.

UM, WHICH FOLKS THAT ARE GONNA SAY, WELL, TOO LITTLE TOO LATE, RIGHT? THESE ARE ALL THE HORRIBLE THINGS THAT HAVE HAPPENED TO ME OVER THE PAST 10 YEARS THAT YOU GUYS HAVE DONE ON.

YOU KNOW, TO ME, THIS IS SORT OF THE MISTAKES THAT C P S HAS MADE.

UM, AND THOSE ARE LEGITIMATE CONVERSATIONS TO HAVE ABOUT THE PAST, RIGHT? BUT, UM, THAT DOESN'T CHANGE THE REALITY THAT IS BARRELING TOWARDS US, WHICH IS, YOU'RE, YOUR BOND

[01:00:01]

UH, BUT THAT'S WHY WE WERE ELECTED UP HERE IS SOMETIMES TO MAKE THE UNPOPULAR DECISIONS, NOT THE ONES THAT ARE EASY.

AND SO, I'M, UM, YOU GOT ME ONE STEP CLOSER TODAY.

I, I WILL TELL YOU WHAT HELPED ME TAKE THAT ONE STEP THOUGH, IS LISTENING TO REED WILLIAMS. UM, I, YOU KNOW, I'VE GOTTEN TO WORK WITH REED WILLIAMS BEFORE ON CITY COUNCIL, AND, UH, I'VE HAD THE PLEASURE OF WORKING WITH HIM AFTERWARDS.

AND I THINK THAT, UM, MY EXPERIENCES WITH HIM ARE THE SAME KIND OF EXPERIENCES THAT CITY STAFF HAD WAY BACK WHEN HE WAS HERE, AND THEN OTHER FOLKS.

AND THAT IS HE'LL DRIVE YOU NUTS, UH, WITH HIS VERY, VERY, VERY BRUTAL HONESTY.

UM, AND, YOU KNOW, AND, AND WHEN YOU DISAGREE WITH HIM, HE'LL TELL YOU TO YOUR FACE, RIGHT? YOU'RE WRONG.

AND THESE ARE ALL THE REASONS YOU'RE WRONG.

YOU WON'T SUGARCOAT IT WHEN YOU'RE RIGHT.

HE'LL DO THE EXACT SAME THING.

AND, YOU KNOW, REED, YOU, YOU DRIVE ME INSANE SOMETIMES.

UH, BUT, UM, I NEVER WALK AWAY FEELING LIKE I WASN'T HEARD.

UM, AND I'VE NEVER WALKED AWAY FEELING LIKE THE MAN WASN'T OBJECTIVE AND THAT HE DIDN'T PUT A GOOD FAITH EFFORT TO, TO BALANCE EVERYTHING.

FOR THE MOST PART, WHEN REID HAS BEEN, UH, RECRUITED TO SOLVE PROBLEMS, HE'S SOLVED THEM.

UM, AND HE'S REALLY COME BACK AND, UM, AND TOLD US EXACTLY WHERE THE WARTS AND THE HAIRS ARE.

UM, AND, YOU KNOW, ALL TOO OFTEN WE APPOINT PEOPLE TO, UH, TO, TO SEND THEM OFF TO GO DO AN ANALYSIS, AND THEY COME BACK WITH, YOU KNOW, 50 PAGES OF M B A SPEAK THAT NOBODY UNDERSTANDS, AND IT REALLY DOESN'T SAY ANYTHING.

READ ONLY NEEDS A THREE BY FIVE CARD TO LET YOU KNOW WHEN SOMETHING'S BROKEN AND WHAT THE FIX IS.

UM, AND I HATE WHAT REED'S TELLING US, AND THAT IS THAT THIS IS THE WAY FORWARD AND THAT HE'S, YOU KNOW, UH, LOOKED AT THIS FROM EVERY ANGLE.

UM, I HATE IT, REED.

AND, BUT I UNDERSTAND, YOU KNOW, WHY YOU'RE SAYING IT, AND I BELIEVE YOU.

UM, WITH THAT SAID, RUDY, UM, I'LL TELL YOU WHAT, WHAT DOES STICK IN MY CRAW? UH, AND IT'S, IT'S BEEN STICKING IN MY CRAW FOR A LONG TIME.

I DON'T THINK WE'VE GOT ENOUGH BOARD MEMBERS ON C P SS.

I DON'T THINK IT'S REPRESENTATIVE OF THE ENTIRE COMMUNITY.

UM, AND I, I USED TO BRING THAT UP TO YOUR PREDECESSOR AND HER PREDECESSOR BEFORE THAT, AND THEY WERE LIKE, WELL, IT'S JUST AN IMPOSSIBILITY BECAUSE, YOU KNOW, THERE'S BOND COVENANTS THAT SAY THAT THIS IS WHERE, THIS IS HOW MANY FOLKS, AND TO THAT, ANDY, UH, YOU KNOW, AND TO THE LAWYERS WHO ARE LISTENING, I'LL REMIND YOU THAT, YOU KNOW, L B J GOT THE 1964 CIVIL RIGHTS ACT PASSED WITH VOTES FROM THE SOUTH, DESPITE EVERYBODY TELLING 'EM IT WAS RIGHT.

I MEAN, I DON'T, I DON'T BELIEVE ANYTHING'S IMPOSSIBLE, RIGHT? AND SO IF I'M GONNA GO TO THE PUBLIC, THAT'S THE QUESTION I KEEP GETTING TOO.

IT'S LIKE, YOU KNOW, THAT THAT BOARD DOESN'T REALLY, I DON'T REALLY FEEL LIKE IT REPRESENTS ME, AND I DON'T FEEL LIKE IT REALLY SPEAKS FOR ME OR TO ME FOR THAT MATTER.

AND THEY'RE NOT WRONG.

'CAUSE I'VE FELT THAT WAY.

UM, AND SO CAN SOMEBODY TALK TO ME WHETHER OR NOT IT'S WITH THEM WITHIN THE REALM OF POSSIBILITY AND HOW WE WOULD BE ABLE TO ONE DAY INCREASE THE NUMBER OF BOARD MEMBERS? WE GOTTA STATE LEGISLATURES, BUT I BET YOU ALREADY KNOW THAT KAMAN, IT WOULD BE, YOU'RE, YOU'RE RIGHT, IT'S DRIVEN BY CITY ORDINANCE AND THE BOND COVENANTS.

UH, THE HARDEST PART, OBVIOUSLY.

I MEAN, WE CHANGE ORDINANCES ALL THE TIME.

THE MORE DIFFICULT PART WOULD BE MORE FROM A HOW DO WE DEAL WITH THE BOND COVENANTS? IT'S SAY WE HAVE THIS NUMBER OF BOARD MEMBERS ON THE BOARD.

UH, THAT ONE WE WOULD HAVE TO WORK WITH, OBVIOUSLY, UH, C P S AND, UH, BOTH BEN AND THEIR FINANCIAL TEAM AS TO HOW WE DEAL WITH THAT.

BUT THAT WOULD BE THE BIGGEST CHALLENGE WOULD BE THAT, WELL THEN, THEN I'D LIKE TO SEE THIS COUNCIL TAKE THAT CHALLENGE UP.

UM, AND, YOU KNOW, BE THE COUNCIL THAT TAKES ON.

WHAT IN THE PAST HAS SOUNDED, I'VE BEEN TOLD IS IMPOSSIBLE, BUT IT'S NOT, THERE'S NOTHING IMPOSSIBLE.

YOU CAN MAKE A CASE TO BOND HOLDERS.

AND I HAVE A FEELING THAT WE'VE GOT A LOT OF SMART PEOPLE IN THE ROOM WHO CAN MAKE THE CASE THAT THE UTILITY WON'T, THE WALLS OF THE UTILITY AND THE FOUNDATION WON'T CRUMBLE AND FALL INTO THE SEA IF WE HAVE A FEW MORE, YOU KNOW, EYEBALLS IN THE, YOU KNOW, UH, UH, REVIEWING, UH, WHAT YOU GUYS DO.

AND SO, UM, ANYWAY, THAT'S JUST FAIR WARNING, RIGHT? UH, THAT'S, I'M COMING FOR, UH, INCREASING THAT NUMBER.

UM, AND I'VE YET TO HEAR A REASON WHY IT SHOULD STAY SO SMALL OR AT LEAST A, A GOOD REASON THAT IS COMPELLING ENOUGH TO ME TO BACK DOWN ON, ON THAT INSISTENCE.

AND I'LL BE WORKING WITH THE REST OF COUNCIL MEMBERS TO WHIP UP THAT SUPPORT FOR THAT.

AND SO, FRIENDS, DON'T SURPRISE FRIENDS, I'M COMING FOR YOU.

COUNCILMAN ALL AS OUR OWNER.

I THINK THAT IS, UM, THAT THAT IS A CONVERSATION FOR THE CITY TO, YEAH.

COUNCIL MEMBER PALAI COUNCIL MEMBER SANDOVAL.

UH, THANK YOU COUNCILMAN PALAI FOR BRINGING THAT UP.

I THINK, UH, WE'VE UH, BROUGHT THAT UP A FEW TIMES LONG BEFORE YOU WERE IN THE ROLE YOU WERE IN.

UM, AND WE'RE ALWAYS TOLD THAT THE BOND COVENANTS WOULD BE, UH, A BARRIER.

I BELIEVE THERE MAY ALSO BE A LEGISLATIVE, UH, HURDLE, UH, BUT NOT, GO AHEAD, ANDY.

I DIDN'T MEAN TO INTERRUPT COUNCILWOMAN, BUT I I GOT

[01:05:01]

CONFUSED TOO.

ON THAT.

SA IS THE ONE WHERE WE HAVE, BY STATUTE, IT'S EITHER FIVE OR THE COUNCIL, UM, BUT NOT, NOT C P SS.

SO WOULD IT BE, UH, POSSIBLE TO AT LEAST REQUEST THAT STAFF, UH, SOMEONE ON, ON YOUR TEAM OR ON BEN'S TEAM, DO AN ANALYSIS TO FIND OUT WHAT THAT PROCESS WOULD BE LIKE? WHAT ARE THE STEPS? UM, THEY COULD BE BURDENSOME, BUT IT'S NOT IMPOSSIBLE.

, OTHER ORGANIZATIONS, UH, DO IT, UH, REGULARLY.

SO IT'S NOT IMPOSSIBLE, COUNCILWOMAN.

AND YES, WE'LL WORK, UH, WITH OUR STAFF AND THE C P S STAFF TO GIVE YOU AN ANALYSIS OF THAT SUPER.

THE ENTIRE COUNCIL AND ANALYSIS.

UM, ANDY, SO, UH, A COUPLE OF QUESTIONS, UH, FOR YOU, UH, RUDY.

UM, AND NUMBER ONE, THANK YOU TO YOUR STAFF, UH, AND YOU FOR BEING HERE THREE WEEKS IN A ROW, .

AND SO, UH, ACCESSIBLE, UH, DURING THAT TIME, UH, AND FOR SENDING US THESE RESPONSES.

UH, THAT WE GOT, I WANNA MAKE SURE I'M, I'M CLEAR ON, ON SOME OF THEM.

SO, I KNOW WE HAD TALKED ABOUT BREAKING DOWN FOR RESIDENTIAL USERS, UH, BY, BY USAGE CATEGORY, WHAT THE IMPACT WOULD BE.

SO I'M LOOKING AT PAGES AT PAGE 22 AND 23.

AND SO IF I LOOK AT DISTRICT SEVEN, YOU'VE BROKEN THEM DOWN INTO FIVE CATEGORIES OF USERS.

AND FOR THE LOWEST USER CATEGORY, WHICH IS UNDER 500 KILOWATT HOURS, UH, ON A MONTHLY BASIS, I IMAGINE THAT'S AN ANNUAL AVERAGE.

SO ON AN ANNUAL AVERAGE, THEY WOULD PAY, UH, AN ADDITIONAL $2 AND 32 CENTS A MONTH.

THAT WOULD BE THE HIGHEST USER, THE ONE THAT COMES IN AT 500 OVER THE COURSE OF 12 MONTHS, THAT WOULD BE ABOUT $25 OR SO OVER THE COURSE OF ONE YEAR.

FOR USERS BETWEEN 500 AND A THOUSAND.

UH, AND THAT'S OUR BIGGEST CATEGORY.

23,000 HOUSEHOLDS WILL BE AFFECTED AT LESS THAN $5 A MONTH ON AVERAGE.

SO $60 A YEAR? YES.

AM I'M READING THAT CORRECTLY? YES.

BECAUSE THIS IS WHAT WE'RE GONNA SHARE WITH YEAH, EXACTLY.

WITH OUR COMMUNITY MM-HMM.

, UH, AND UP TO 1500 KILOWATT HOURS, THE HIGHEST USER IN THAT CATEGORY WILL BE AFFECTED AT $7 A MONTH.

SO $84 A YEAR.

AND THEN WE HAVE A NUMBER FOR THE UP TO 2000 KILOWATT HOURS, WHICH IS $9 AND 35 CENTS.

SO, UM, A LITTLE OVER A HUNDRED DOLLARS, 110 OR SO DOLLARS.

AND I CLARIFIED THESE ARE FOR CUSTOMERS THAT ARE NOT ON THE AFFORDABILITY DISCOUNT PROGRAM, CORRECT? YES.

SO THE, THE AVERAGE CUSTOMER WOULD EXACTLY, WOULD BE, THE AVERAGE HOUSEHOLD WOULD BE AFFECTED THIS WAY.

, I THINK THAT'S, UH, HAVING THAT IS A LITTLE BIT EASIER FOR US TO SELL.

I REALIZE IT VARIES.

SOME MONTHS IT'S GONNA BE HIGHER.

SOME MONTHS IT'S GOING TO BE LOWER, BUT HOPEFULLY PEOPLE CAN, UM, WE CAN AT LEAST PUT REAL TANGIBLE NUMBERS TO CORRECT TO THAT.

, UM, THE, MY SECOND QUESTION, UM, IT, IT'S A FOLLOW UP FROM LAST TIME I ASKED, COULD YOU GIVE US A TIMELINE FOR WHEN YOU WILL ADDRESS THE RATE STRUCTURE QUESTION AND THE, UH, GENERATION PLANNING QUESTION? AND I, I KNOW WE HEARD FROM REED, WE, YOU SAID YOU WOULD TALK TO, UH, CHAIR WILLIAMS ABOUT THAT, BUT WHAT I'M READING HERE SAYS WE EXPECT TO HAVE A TIMELINE FOR RATE RESTRUCTURING THAT CAN BE SHARED IN THE NEXT 12 MONTHS.

COUNCILWOMAN, IT'LL BE QUICKER THAN THAT.

UH, YOU KNOW, THE, THE 12 MONTHS REALLY IS WE GOTTA, WE GOTTA PIVOT AND GET ALIGNMENT ON THE BOARD WITH THE RAC WITH THE FOLKS THAT, UH, DEVELOP THE PROCESS.

SO THAT'S GONNA TAKE, YOU KNOW, A LITTLE BIT OF TIME, BUT I WANNA MAKE SURE THAT, AGAIN, I'M SENSITIVE TO THE FEEDBACK THAT I'M GETTING ON RUSHING PEOPLE, SO I WANNA MAKE SURE WE DO IT TIMELY, BUT WE DO IT IN A THOUGHTFUL MANNER.

SO THE FEEDBACK I'M HEARING FROM THE MEMBERS OF THE RAID ADVISORY COMMITTEE, AT LEAST FROM SOME OF THEM, IS THAT THEY ARE EAGER TO BEGIN DISCUSSIONS ON THIS TOPIC.

SO I'M NOT SURE THAT THAT'S WHERE YOU'RE GOING TO GET THE PUSHBACK FROM.

IS THAT WHERE YOU'RE FEELING PUSHBACK FROM? NO, I, I JUST, AGAIN, I WANT TO GIVE THEM TIME TO, TO ALIGN ON A PROCESS.

SO, YOU KNOW, I, THAT 12 MONTHS REALLY IS, I THINK, WE'LL, WE'LL DO IT SOONER THAN THAT.

UH, AND WE'LL, YOU KNOW, AS SOON AS WE'RE READY, WE'LL COME BACK TO, TO COUNCIL AND WE'LL, WE'LL LET YOU KNOW WHERE WE ARE, BUT I DON'T THINK IT'S GONNA TAKE 12 MONTHS, BUT IT'S, BUT YOU WROTE 12 A MONTH, SO I WOULD LOVE IT.

UNDERSTAND IF YOU WOULD WRITE ANOTHER NUMBER.

KNOW, SOME PIECE OF IT DOESN'T, DOESN'T WORK OUT.

DOWN.

VERY GOOD FOR US.

UH, SAME FOR, FOR A GENERATION PLANNING.

AND, UH, SO I'M GONNA TALK A LITTLE BIT ABOUT, UH, OR RESPOND TO WHAT, UH, CHAIRMAN WILLIAMS SAID ABOUT GENERATION PLANNING.

AND IF YOU'RE LIKE ME, YOU GOT A LITTLE BIT LOST ON, UM, WHAT HE, WHAT HE SAID.

BUT I THINK WHAT CHAIRMAN WILLIAMS, AND CORRECT ME IF I'M WRONG HERE, IS YOU BASICALLY LAID OUT A PATH FOR HOW WE COULD POSSIBLY GET TO DECARBONIZATION A A STARTING POINT.

SO A STRAW MAN.

AND I JUST WANNA SAY THAT I SUPPORT THE IDEA OF HAVING A STRAW MAN.

AND LIKE HE SAID, IT MAY NOT WORK OUT ONCE YOU START RUNNING THE TRAPS ON IT, YOU MIGHT END UP FINDING THAT, YOU

[01:10:01]

UH, BUT I, I AM VERY SUPPORTIVE OF SETTING OUT THAT STRAW AND AS, AS A STARTING POINT.

SO I WANTED TO, TO SHARE THAT WITH YOU.

SO I WANNA THANK, UH, THE CHAIRMAN FOR ALREADY THINKING THAT THROUGH.

AND I, I'M SURE YOU GOT FRANK'S, UH, INPUT ON THAT.

AND I'M SORRY, WE'RE GONNA LOSE YOU, FRANK, BY THE WAY.

SO, BUT CONGRATULATIONS ON YOUR NEXT BIG JOB.

UM, SORRY, I HAVE A FEW NOTES TO GO THROUGH.

THE, UM, THE OTHER THING I WANTED TO, UH, TO REQUEST, AND ONE OF MY COLLEAGUES REQUESTED THIS, UH, LAST TIME IS, UH, AND I SHOULD HAVE ANTICIPATED, WE WILL BE HEARING LOTS OF QUESTIONS ABOUT POLLS, , UH, SEE, UH, LIGHT POLES AND C P S POLES.

UH, SOME OF THEM, AS WE KNOW IN OLDER PARTS OF THE CITY ARE, UH, IN DISREPAIR.

THEY'RE BEING HELD UP BY ANOTHER POLE.

SO, UH, IT WOULD BE VERY HELPFUL IF IN ADVANCE OF OUR TOWN HALL, OURS WILL BE, I BELIEVE JANUARY 5TH OR SIXTH, YOU COULD PROVIDE US WITH THE REPAIR SCHEDULE FOR DISTRICT SEVEN.

UH, OKAY.

WE'LL, WE'LL WORK ON, ON, ON WE, OR SOME SORT OF DESCRIPTION OF WHAT, YEAH, WE, WE, THERE ARE A LOT OF POLES ACROSS THE COMMUNITY THAT NEED REPLACING.

WE'VE GOT SO MANY POLES A YEAR THAT, YOU KNOW, WE, WE CAN DO.

AND SO WE WILL, UH, WE'LL GET A, WE'LL GET A, A, A LOOK FORWARD ON KIND OF WHAT OUR PLAN IS, AND WE'LL, WE'LL BE SPECIFIC ABOUT DISTRICT SEVEN, IF THERE ARE SPECIFIC AREAS YOU WANT THAT YOU'RE PARTICULARLY INTERESTED, AND THAT GOES FOR ANY COUNCIL MEMBER, UH, LET ME KNOW AND, YOU KNOW, WE'LL MAKE SURE THAT, THAT WE'VE, WE'VE DONE THE RIGHT KIND OF INSPECTIONS.

UM, THANK YOU.

AND THEN, UH, JUST A, A COUPLE FINAL COMMENTS.

UM, I, UH, I, I APPRECIATE THE TIME CRUNCH THAT YOU'RE UNDER, AND YOU'RE TRYING TO GET THIS ADOPTED BY THE TIME YOUR BUDGET IS, IS ADOPTED.

AND I JUST, UM, SO I'M GONNA WORK WITH YOU ON THAT, THANK YOU ON THAT TIMELINE.

UM, BUT I, I ALSO WANT YOU TO WORK WITH US.

UH, BECAUSE WE, WE ARE IN A DIFFICULT SITUATION.

LIKE, I THINK IF YOU ASK ANY COUNCIL MEMBER, WHEN'S THE WORST TIME TO PASS SOMETHING CONTROVERSIAL? IT'S GONNA BE RIGHT NOW.

UH, BECAUSE PEOPLE, IT'S, IT'S GONNA BE HARD TO GET PEOPLE TO COME TO MEETINGS AND, UH, YOU KNOW, THE HOLIDAYS ARE, ARE COMING UP.

SO IT'S, IT'S HARD TO GET AHOLD OF STAFF TOO, RIGHT? BECAUSE PEOPLE TAKE VACATIONS.

SO I JUST HOPE YOU CAN, YOU CAN APPRECIATE THAT.

AND I, I, I UNDERSTAND YOU FEEL LIKE YOU, YOU HAVE NO CHOICE.

UM, COUNCILMAN LITERALLY, I HAVE CLEARED MEETINGS OFF OF MY ENTIRE LEADERSHIP TEAM'S SCHEDULE TO FOCUS SPECIFICALLY ON THIS REQUEST.

SO WE WILL BE WHERE WE NEED TO BE.

SO, SO WE WE'RE HAVING TO DO SOME OF THAT TOO, RIGHT? YES, MA'AM.

UH, PULLING TOGETHER, UH, EVENTS NOW AND, AND WE REALIZE WE NEED TO DO THAT BECAUSE AT THE END OF THE DAY, WHEN WE VOTE, WE, IT'S, I KNOW SOME PEOPLE SAY IT'S BETTER TO ASK FOR FORGIVENESS, BUT I WILL TELL YOU, IT IS ALWAYS BETTER AS A COURTESY TO TELL PEOPLE WHAT YOU'RE GONNA DO, EVEN IF YOU ALREADY KNOW WHAT YOU'RE GONNA DO.

BUT AT LEAST LET THEM KNOW IN ADVANCE, UH, BECAUSE OTHERWISE IT'S, YOU'LL PAY FOR IT.

AT LEAST WE WILL .

UH, BUT I DID, UH, WANT TO MAKE ONE, ONE OTHER COMMENT IN TERMS OF, OF WORKING WITH US.

YOU OUTLINED THE ROLES OF THE DIFFERENT, UH, BODIES.

UM, I THINK THE ONE THAT WAS MISSING ON THERE WAS THE MUNICIPAL UTILITIES, UH, COMMITTEE, BUT IT WOULD FALL UNDER CITY COUNCIL, I'M GUESSING.

WE'LL TAKE TO THE BOARD HERE SHORTLY.

THE MUNICIPAL, BASED ON MY UNDERSTANDING, THE, THE, UH, VOTE ON A RATE REQUEST IS NOT THE, UNDER THE PURVIEW OF THE MUNICIPAL UTILITY COMMITTEE.

THAT'S THE FULL BODY OF, OF THE COUNCIL.

SO, SO I, I HAD ASKED YOU THIS, UH, UH, PREVIOUSLY, BUT I, I THINK IN THE SPIRIT OF WORKING WITH THE COUNCIL, IT WOULD BE VERY MEANINGFUL TO ME IF WE DID FIND A WAY FOR COUNCIL MEMBERS TO HAVE, UM, TO BE ABLE TO SELECT AND RECOMMEND WHO IS GOING TO BE THEIR REPRESENTATIVE ON THE RAC.

'CAUSE ON THAT FORM, IT SAYS THAT WE WOULD CONSULT WITH OUR OWN RAC, YOU KNOW, MEMBERS.

AND SOME OF US, YOU KNOW, WELL, MINE JUST LEFT, RIGHT , BUT, UH, SOME OF US DID APPOINT THE MEMBERS THAT ARE ON THERE.

SOME OF US, UH, DIDN'T.

AND YOU KNOW, WHEN WE, WHEN WE ARE ELECTED, WE, UM, WE MAKE A COMMITMENT TO THE PEOPLE OF THAT COMMUNITY THAT THERE IS A VISION WE'RE BRINGING FORWARD, AND THAT THERE ARE, ARE VALUES WE'RE BRINGING FORWARD, AND THEY EXPECT THAT OF US.

AND IF THAT'S NOT REPRE, IF WE CAN'T EXECUTE THAT BECAUSE WE CAN'T APPOINT SOMEONE TO THE RAC OR HAVE SOMEONE SERVE ON THE RAC AND, AND CONVEY THAT VIEWPOINT, THEN WE CAN'T MAKE GOOD ON OUR COMMITMENTS TO THE PUBLIC.

SO I, I HOPE YOU WILL HELP ME FIND A WAY TO MAKE THAT HAPPEN AND TAKE SOMETHING TO YOUR BOARD SO THAT THAT'S DOABLE.

COUNCILWOMAN, THIS HAS BEEN AN ISSUE, YOU KNOW, SINCE THIS COUNCIL WAS ELECTED, AND I RECOGNIZE THAT, UM, YOU KNOW, WE'LL, WE, THE BOARD HAS THE ABILITY TO CHANGE THE BYLAWS.

WE DID NOT.

WE JUST DIDN'T, YOU KNOW, AGAIN, WE'RE NOT THINKING LIKE A, A CITY STAFF MEMBER.

WE'RE THINKING, YOU KNOW, LIKE A UTILITY.

SO WE DIDN'T ALIGN THE TERMS OF THE RACK TO THE COUNCIL TERMS, BUT THAT IS A, A, A, A BYLAW CHANGE THAT, THAT

[01:15:01]

IT'S THREE FIVE THREE SIX ONE ONE ZERO.

COUNCIL MEMBER SANDOVAL, COUNCIL MEMBER ROCHA GARCIA.

THANK YOU MAYOR.

AND THANK YOU RUDY.

AND TEAM.

UM, I HAVE A QUESTION.

THERE'S, AND, AND THANK YOU FOR THE INFORMATION THAT YOU GAVE US AND THE DOOR HANGERS.

THEY LOOK BEAUTIFUL.

UM, I HAVE SOME, UM, SOME CONCERNS ON SOME OF IT.

AND THEN I'LL, I'LL SHARE WITH YOUR STAFF.

I, UM, ARE MAKING SOME RECOMMENDATIONS IF THEY'RE NOT PRINTED ALREADY.

BUT, UM, THERE IS NOTHING ON THERE.

ON THE ONE THAT TALKS ABOUT RATE CASE INFORMATION.

IT TALKS, I MEAN, DOES A WONDERFUL JOB TALKING ABOUT WHY, UH, OR WHAT IS NOT INCREASED, UM, AND WHAT THE INCREASED DOES COVER.

BUT THERE'S NOT A PHONE NUMBER ON THERE.

AND I STILL THINK THAT ANYWHERE WE CAN PLASTER THAT PHONE NUMBER, IT WOULD BE IMPORTANT.

UM, YOU WILL, IT, IT, IT'S, IT'S A REALLY LONG ONE.

IT'S KIND OF, UM, TINY PRINT.

SO MY OLDER RESIDENTS WILL PROBABLY STRUGGLE READING.

SO THE SIZE OF THE FONT TO ME IS A LITTLE TOO SMALL, UM, FOR THEM.

BUT FOR ME, IT'S FINE.

BUT I'M JUST SAYING THAT IF THIS IS GOING IN ALL OF OUR BILL INSERTS, UM, BUT THAT'S THE ONLY ONE THAT DOESN'T HAVE A PHONE NUMBER.

AND I'D LIKE TO MAYBE RECOMMEND THAT THERE'S A QUESTION ON WHAT IF I NEED HELP WITH MY BILL, BECAUSE WE'RE TALKING ABOUT CASE RATE INFORMATION, UM, RATE COST SAVINGS.

WE'RE, WE'RE DOING EVERYTHING THAT, THAT WE SET EXCEPT THE, THE PHONE NUMBER.

AND WHAT IF I NEED HELP WITH MY BILL? LIKE, I THINK WE NEED TO BE VERY SPECIFIC IN THAT, THAT THERE'S HELP AVAILABLE.

UM, AND THEN ON THE OTHER ONE ALSO, THERE IS A PHONE NUMBER.

WHAT HAPPENS WHEN YOU CALL THAT NUMBER? WHAT DO THEY SAY? IS IT JUST THE EVENTS OR WOULD THEY BE ABLE ALSO TO COMPLETE THEIR, UM, APPLICATION FOR ASSISTANCE AT THAT NUMBER? SO, UH, THE MUNICIPAL UTILITY COMMITTEE ACTUALLY ASKED US, UH, TO SET UP A SPECIFIC NUMBER FOR ARPA FUNDING.

SO THAT NUMBER GOES TO A SPECIALIZED GROUP THAT IS VERY, VERY WELL VERSED ON ARPA APPLICATION PROCESS.

SO THE WAY THAT I, I READ IT RIGHT NOW, IT SOUNDS LIKE IT'S JUST ABOUT EVENTS, BUT NOT NECESSARILY ABOUT HELP FOR MY BILL.

UH, SO MAYBE WE COULD PUT IT AT THE BOTTOM ALSO WHERE IT SAYS, FOR ARPA ENERGY BILL ASSISTANCE, THE WAY THAT IT'S LISTED AT THE TOP, IT JUST MAKES IT SOUND LIKE, OH, I CAN FIND OUT ABOUT NEIGHBORHOOD MEETINGS.

UM, BUT THOSE, THAT'S, THAT'S ON THE FLYER.

UM, AND I THINK THAT THE SAME THING IS TRUE FOR THE DOOR HANGER, RIGHT? SO ANYTHING THAT WE CAN DO, AGAIN TO JUST, UH, GIVE THAT PHONE NUMBER, UM, SPECIFICALLY IN REGARDS TO APPLICATION FOR HELP WOULD BE IMPORTANT.

AND THEN I LOVE THE, THE OTHER TWO FLYERS THAT YOU ALL PUT TOGETHER WITH THE ASSISTANCE AND BILLING PROGRAMS. I THINK THOSE ARE VERY NICELY DONE.

THERE'S TONS OF PHONE NUMBERS ON THOSE, SO I APPRECIATE THAT.

UH, WE WILL TAKE ALL THE ADVICE AND OKAY.

UH, WE CAN GET, THANK YOU, MA'AM.

I'LL, I'LL PASS IT BACK OVER HERE TO MELISSA.

THANKS, EVERYONE.

JUST HAND IT RIGHT TO DEANNA RIGHT BEHIND YOU.

YOU GOT IT.

THANKS, MAYOR.

WE'LL TAKE IT FROM THERE.

COUNCIL MEMBER, UH, ROCHA GARCIA, COUNCIL MEMBER CASTILLO.

BUT I, I THINK AS WE CONTINUE TO HAVE THIS CONVERSATION, UM, I, I, I HAVE THOSE FOLKS WITHIN THE COMMUNITY IN MIND.

THANK YOU RUDY AND TEAM FOR THE PRESENTATION.

AND I APPRECIATE THE COMMUNITY OUTREACH AND THOSE STEPS THAT Y'ALL HAVE TAKEN TO ENSURE THAT COMMUNITY'S, UH, WELL AWARE OF WHAT, UH, WE MAY BE CONSIDERING TO PASS.

UM, IN ADDITION TO THAT, I REALLY LIKE THE TEXT MESSAGING, UM, SO I APPRECIATE THAT AS WELL AS ALL THE LITERATURE THAT YOU PROVIDED FOR US ALL TO REVIEW.

UM, I WANTED TO SHIFT TO PAGE 35 OF THE SUPPLEMENTAL PACKET, AND I APPRECIATE YOU ALL GETTING THAT TOGETHER VERY QUICKLY AND FOLLOWING UP TO ENSURE THAT WE RECEIVED IT.

UM, SO I APPRECIATED THE EMAIL AND THEN THE CALL SAYING, HEY, YOU KNOW, WE SENT IT OVER.

SO THANK Y'ALL FOR THAT.

UM, WHEN WE TALK ABOUT THE RATE DESIGN AND GENERATIONAL PLANNING, AND I, I READ HERE THAT YOU ALL STATE THAT OUR INDUSTRY PEERS HAVE SEEN SUCCESS BY METHODOL METHODOLOGICALLY APPROACHING EACH OF THESE, UH, TOUGH TOPICS ONE AT A TIME.

AND THIS IS THE APPROACH WE PLAN TO TAKE.

UM, I BELIEVE I HEARD EARLIER THAT, UH, THERE'S BEEN A CONVERSATION ABOUT A RATE INCREASE FOR THE LAST THREE YEARS.

UM, AND IT GIVES ME CONCERN AND PAUSE THAT WHILE WE'VE BEEN ENTERTAINING, C P SS HAS BEEN ENTERTAINING THE IDEA OF A RATE INCREASE THAT, UM, WE HAVEN'T SERIOUSLY BEEN CONSIDERING RESTRUCTURING THE RATE STRUCTURE.

SO THAT, THAT GIVES ME A DEEP PAUSE AND CONCERN.

UM, BUT IN ADDITION TO THAT, RIGHT? WE KNOW THAT ELECTRICITY IS ESSENTIAL.

AND WHILE WE KNOW BECAUSE OF CLIMATE CHANGE THAT WE ARE GOING TO EXPERIENCE MORE COLD WINTERS AND HOT SUMMERS, UM, I I, I AM CONCERNED THAT BECAUSE OF THE POTENTIAL PAY RATE STRUCTURE, AND, AND THIS IS CONVERSATIONS THAT I'VE HAD WITH RAC APPOINTEES, IS THEIR CONCERN THAT FOR MANY RESIDENTS, NOT JUST DISTRICT FIVE RESIDENTS WHO ARE ON FIXED INCOMES, THAT IN ORDER TO STAY WITHIN THEIR MEANS, THEY MAY NOT TURN ON THE AC UNIT, THEY MAY NOT TURN ON THE HEAT BECAUSE THEY'RE CONCERNED OF NOT BEING ABLE TO PAY THAT UTILITY.

AND AGAIN, THIS IS A CONCERN THAT I'VE HEARD FROM COMMUNITY MEMBERS PRIOR TO COVID, A CONCERN THAT I'VE HEARD FROM COMMUNITY MEMBERS PRIOR TO THE WINTER STORM.

SO I THINK THAT WE NEED TO CONTINUE TO HAVE THIS CONVERSATION.

I AM PLEASED TO LEARN THAT IT ISN'T GOING TO BE 12 MONTHS, THAT WE'RE GOING TO SEE THAT TIMELINE, THAT IT IS GOING TO BE SHORTENED.

UM,

[01:20:01]

UM, BUT IN ADDITION TO THAT, WHAT GIVES ME PAUSE AS WELL IS THE 14 MILLION FOR GROWTH.

UM, IT'S MY UNDERSTANDING THAT GROWTH SHOULD TAKE CARE OF ITSELF, UM, AND THAT OUR RESIDENTIAL AND COMMERCIAL RATE PAYER SHOULD NOT HAVE TO PICK UP THAT BURDEN FOR GROWTH.

UM, SO I WOULD LIKE TO SEE, UM, HOW MUCH WE HAVE, UH, C P SS ENERGY RATHER HAS GIVEN IN C P S ABATEMENTS TO LARGE CORPORATIONS.

IT'S ALSO MY UNDERSTANDING, UM, WHAT I'VE LEARNED FROM THE RACK IS THAT WE HAVE C P SS ENERGY.

HAS BEEN ISSUING, UM, LOWER RATES TO BRING LARGE BUSINESSES HERE.

SO I WOULD LIKE TO SEE WHAT THOSE RATES ARE AS WELL AS HOW MUCH, UM, THEY HAVE, UM, YOU ALL HAVE GIVEN TO THEM.

UM, IN ADDITION TO THAT, UM, I WANNA BE SURE, UM, THAT IF POSSIBLE, I WOULD LIKE TO SEE THE LAST 10 YEARS DATA ABOUT DEVELOPMENT PROJECTS THAT WERE FUNDED THROUGH C P S.

AND TO GIVE YOU AN EXAMPLE, PORT SA IS ONE EXAMPLE, C COUNCILWOMAN.

LET ME JUST SAY, UH, BROADLY, NUMBER ONE, AS CORY MENTIONED EARLIER, WE'VE GOT AN OBLIGATION TO SERVE.

SO, YOU KNOW, AS GROWTH IS HAPPENING, YOU KNOW, HOW THE CITY DEVELOPS, THAT IS CERTAINLY A CITY, UH, FUNCTION, HOW PLANNING, ZONING THE PROCESSES THIS CITY HAS THAT DETERMINES HOW THE, THE CITY'S GROW GROWS.

BUT IF THEY COME HERE, YOU KNOW, WE WE'RE OBLIGATED TO SERVE 'EM BY PUBLIC UTILITY, YOU KNOW, COMMISSION REGULATION.

WE DON'T, UH, EVERY CUSTOMER THAT COMES TO C P S ENERGY, YOU KNOW, PAYS SOME PORTION OF, UH, THE COST THAT IT TAKES TO SERVE THEM.

SO, UH, WHEN WE TALK ABOUT GROWTH, WHAT WE'RE TALKING ABOUT IS NEW SUBSTATIONS, NEW, YOU KNOW, BECAUSE WHAT WE'LL DO IS WE'LL BUILD A NEW SUBSTATION AND THEN WE WILL RECONNECT THE, THE SYSTEMS, YOU KNOW, TO, TO THAT NEW SUBSTATION TO IMPROVE RELIABILITY, YOU KNOW, GENERALLY IN THAT AREA.

AND THAT CREATES, YOU KNOW, CAPACITY IN, IN THE AREAS THAT ARE GROWING, YOU KNOW, TO BE ABLE TO, TO ACCOMMODATE THAT GROWTH.

SO THE SYSTEM COST IS, IS REALLY ABOUT TRANSMISSION, UH, SUBSTATION GROWTH.

IT'S NOT SO MUCH SPECIFIC CUSTOMER GROWTH.

AND IN TERMS OF, WE DON'T GIVE ABATEMENTS.

WE HAVE AN E 16 RIDER THAT ONLY THE CITY CAN, CAN, UH, DECIDE THEY'RE GONNA APPLY, UH, TO, UH, OUR, OUR COMMERCIAL RATE, UH, THAT IS MEANT TO BE AN ECONOMIC INCENTIVE, BUT WE DON'T OFFER, YOU KNOW, THE TYPE OF ABATEMENTS THAT GOVERNMENTAL ENTITIES OFFER.

SO I JUST WANNA MAKE THAT CLEAR.

MAKE THAT CLEAR.

I WOULD LIKE TO SEE, UM, THE PAST 10 YEARS FOR C P S V WAIVERS FOR THE LAST 10 YEARS, IF YOU CAN PROVIDE ME WITH THAT, AS WELL AS THE RATE THAT THOSE, UM, CORPORATIONS ARE, ARE ALLOCATED, MA'AM.

UM, BUT I, I JUST WANNA BE SURE THAT WE ARE HAVING THIS CONVERSATION ABOUT THE PAY RATE STRUCTURE.

AND IF C P S ENERGY'S APPROACH IS ONE AT A TIME, WE NEED TO ENSURE THAT IT'S THE RATE STRUCTURE BEFORE WE CONTINUE TO SHIFT THE BURDEN TO OUR SMALL BUSINESSES AND OUR RESIDENTIAL USERS.

THANK YOU, COUNCILMAN.

AND I, I WILL DO SOME CHECK, BUT I DON'T THINK THERE ARE MANY FEE WAIVERS THAT ARE GONNA COME UP, BUT WE'LL, WE'LL, WE'LL, WE'LL GET AN ANSWER TO YOUR QUESTION.

UM, ANDY, BEN, OR SH WILL YOU CLARIFY, UH, THE COMMENTS ON RATE AND DIFFERENCES IN RATES, PLEASE? SHANNA RAMIREZ, I'M OUR GENERAL COUNSEL AND OUR CHIEF LEGAL OFFICER.

UM, I JUST WANTED TO MAKE SURE THAT YOU UNDERSTAND, UM, UNDER STATE LAW, WE CANNOT DISCRIMINATE BETWEEN CUSTOMERS.

SO WE DON'T OFFER DIFFERENT RATES, DIFFERENT CUSTOMERS, UNLESS THERE'S A SPECIFIC RATE THAT THEY QUALIFY FOR.

DURING THE HOLIDAY SEASON.

I WANNA BE SURE THAT YOU UNDERSTAND THAT, YOU KNOW, THE, THE MORE ENERGY YOU USE COUNCIL MEMBER.

SO WE'RE GONNA MOVE TO THE DISCUSSION.

I JUST WANTED TO MAKE SURE THAT WE CLARIFIED ANY, THE, THE ISSUE OF STATE LAW, BECAUSE THAT'S AN IMPORTANT POINT THERE ARE, WE ARE NOT PERMITTED TO, TO DISCRIMINATE BETWEEN CUSTOMERS ON, ON RATES.

SO THE RATE IS EQUAL ACROSS THE BOARD BASED ON THE CUSTOMER CLASS.

YES, CORRECT SIR.

ALRIGHT, LET'S MOVE NOW TO COUNCIL MEMBER PERRY.

THANK YOU, SIR.

UM, RUDY, UM, AGAIN, I ECHO SOME OF THE SENTIMENTS THAT'S COMING ACROSS, LIKE THIS BEING THE WORST TIME OF THE YEAR TO BE TRYING TO GET THIS OUT INTO THE COMMUNITY TO GET THEIR INPUT.

UM, I CAN TELL YOU, UM, I HAVE NOT HEARD ANYBODY IN DISTRICT 10, AND WE'VE GOTTEN A LOT OF FEEDBACK SAYING, WE UNDERSTAND.

I DIDN'T HEAR THAT ONCE, SO I DON'T KNOW WHERE YOU'RE HEARING THAT FROM, BUT WE, I HAVEN'T HEARD THAT ONCE FROM MY NEIGHBORS IN DISTRICT 10.

THEY'RE ALL SAYING NOT ONLY NO, BUT HELL NO.

UH, BECAUSE OF RELIABILITY ISSUES, UH, WHAT THEY'VE READ IN THE NEWSPAPERS, ON AND ON AND ON, UM, UH, A HUNDRED DIFFERENT REASONS WHY.

BUT, UM, UH, I JUST DON'T THINK WE'RE GIVING THIS ENOUGH TIME.

WE'RE, I'VE SAID THIS BEFORE, WE'RE KIND OF RAM RIDING THIS THROUGH

[01:25:01]

PEOPLE ARE STILL, YOU KNOW, I'M STILL NOT THROUGH PAYING FOR LAST YEAR'S CHRISTMAS.

UH, AND THEN YOU GOT, WE GOT PROPERTY TAXES OUT THERE COMING UP THAT'S, THAT'S COMING DUE AFTER THE FIRST OF THE YEAR.

SO ALL OF THIS COMING, COMING TOGETHER RIGHT NOW IS, IN MY OPINION, THE WRONG TIME TO DO THIS.

UM, A COUPLE OF, COUPLE OF QUESTIONS THAT THERE WAS A CHART SHOWN ABOUT YOUR CURRENT GENERATION CAPACITY, AND YOU HAD THE COAL PLANTS ON THERE THAT WERE STILL OPERATING.

AND WHAT YEARS WERE THEY, UH, HOW MANY YEARS WERE THEY EXPECTED TO BE ONLINE? ANY GENERATING UNIT THAT WE HAVE, SIR, YOU KNOW, SHOULD BE ONLINE.

40, 50 YEARS? YOU KNOW, LONG FROM NOW? WELL, NOW FROM NOW, NO, I'M TALKING ABOUT FROM NOW.

30 IS FRANK.

WHY DON'T YOU COME UP AND, UH, REAL QUICK, AND LET'S, LET'S GET THIS RIGHT.

I'M JUST FOCUSING IN ON THE YES, SIR.

SPRUCE ONE, SPRUCE TWO.

YEP.

HELLO, SARAH.

FRANK ALMARAZ, UH, SPRUCE ONE CAME ONLINE IN 1992, AND SPRUCE TWO CAME ONLINE IN 2010.

SO IT WOULD BE 45 YEARS FROM THEN, I THINK 40, 20, 47.

AND, UH, AND, UH, UH, BEYOND OUR, OUR FORECAST HORIZON.

SO 2055, I THINK IS WHAT WOULD BE THE DESIGN LIFE FOR.

SO ONE HAS A LIFESPAN TELL WHEN SPRUCE ONE.

SPRUCE ONE HAS A, A, UM, SO 2047 IS THE OFFICIAL DESIGN LIFE.

AND THEN SPRUCE TWO IS 2065, THE OFFICIAL DESIGN LIFE.

NOW I'M GONNA SHIFT OVER TO COUNCILMAN WILLIAMS. IF, IF I COULD ASK YOU A COUPLE OF QUESTIONS SURE.

YOU GO THERE? YES, SIR.

I WANT EVERYBODY TO HEAR THIS.

ALRIGHT, GO AHEAD.

SO WHAT WAS YOUR INITIAL CHARTER IN THIS, IN THIS GROUP? WHAT, WHAT, WHAT ARE YOU SUPPOSED TO BE LOOKING AT IN THIS RACK RATE ADVISORY COMMITTEE? THERE'S, THERE'S THREE THERE.

IF YOU GO BACK AND, AND READ, UH, THE SECTION, THERE'S THREE THINGS WE'RE CHARGED TO DO.

ONE IS GET EDUCATED ON RATES.

TWO, GIVE OPINIONS ON RATE DESIGN AND THREE GENERATION PLANNING.

AND INSIDE RATE, NOT RATE, DESIGN RATE CASES.

AND INSIDE RATE CASES IS RATE DESIGN.

SORRY, I MISSPOKE.

THOSE ARE THE THREE THINGS THAT ARE ON THE LIST.

SO THAT ARE IN THE REGULATIONS OR THE BYLAWS.

SO THIS RATE INCREASE FALLS WITHIN THOSE THREE? YEAH, IT DOES CATEGORIES.

I THINK IT'S SECTION, I DON'T KNOW, SECTION TWO, ARTICLE ONE.

UM, I, I COULD BE CORRECTED.

AND HAVE Y'ALL HAD ENOUGH TIME TO REALLY DIG INTO THIS AND COME UP WITH YOUR RECOMMENDATIONS AND GET CONSENSUS ON YOUR, YOUR GROUP? WE'RE NOT GONNA GET CONSENSUS.

COUNCILMAN, IT'S JUST NOT GONNA HAPPEN.

BUT, BUT I, I BELIEVE THAT WE HAVE BEEN GIVEN ENOUGH INFORMATION TO MAKE A DECISION.

SOME PEOPLE WILL SAY THEY HAVEN'T, BUT, UM, THAT'S THEIR, IF, IF THEY DON'T THINK THEY'VE BEEN GIVEN ENOUGH INFORMATION, ALL THEY HAVE TO SAY IS C P S HADN'T MADE THEIR CASE AND I VOTE NO.

SO THAT'S WHERE YOU'LL GET THAT FEEDBACK.

BUT I CAN ONLY SPEAK FOR MYSELF BECAUSE I CAN'T SPEAK FOR OTHER PEOPLE.

THAT'S NOT MY JOB.

BUT FOR MYSELF, I BELIEVE I'VE RECEIVED PLENTY OF INFORMATION TO MAKE A DECISION.

UM, THE, THE COMMENT THAT I, AND WHY I WAS ASKING ABOUT THE SURE.

THE LIFE EXPECTANCY ON, ON THE TWO PLANTS.

UM, YOU MADE A COMMENT THAT WE NEED TO START OR CONVERT WITHIN THREE YEARS ON THOSE TWO PLANTS.

WELL, WELL, AND WE WOULD CONVERT SPRUCE TWO WITHIN, UH, 18 MONTHS.

WE WOULD SHUT DOWN SPRUCE ONE IN THREE YEARS.

WELL, I, I, I'M JUST GONNA GO ON RECORD SAYING SURE.

I, I DON'T, I DON'T UNDERSTAND THAT AT ALL.

BECAUSE THESE PLANTS HAVE PLENTY OF LIFE IN THEM.

UH, THE RATE PAYERS AND OUR CITIZENS PAID HUNDREDS OF MILLIONS OF DOLLARS FOR THESE PLANTS.

, AND TO NOT LET THEM RUN THEIR LIFE IS BASICALLY THROWING MONEY OUT THE WINDOW IN, IN MY OPINION, THAT YOU'RE NOT LETTING THOSE PLANTS SERVE, SERVE OUT THEIR LIFE AND THAT MONEY THAT WAS INVESTED WITH THEM, WE'RE NOT, WE'RE NOT LETTING IT RUN ITS COURSE.

I UNDERSTAND YOUR POSITION, BUT THAT'S NOT HOW I WOULD LOOK AT THE ECONOMICS.

I LOOK AT THE ECONOMICS AS THAT SUCK COST.

THAT WAS A DECISION MADE YEARS AGO.

I BELIEVE THAT BY SHUTTING THOSE DOWN, CONVERTING ONE AND SHUTTING THOSE DOWN AND MOVING TO COMBINED CYCLE TURBINES GIVES US BETTER RELIABILITY, COMPETES BETTER, AND PROVIDES US A BETTER CASH FLOW GOING FORWARD.

UNDER DINNER SITUATIONS TODAY, I'VE GOTTA LOOK FORWARD AND FIGURE OUT WHAT THE BEST COST ADVANTAGE IS.

AND RIGHT NOW

[01:30:01]

THE COST OR SUNK COST, I NEVER HAD THE ABILITY TO NOT BE ABLE TO LOOK AT THE CHANGING ENVIRONMENT AND THE CHANGING ECONOMIC ENVIRONMENTS.

THINGS CHANGE WHEN WE BUILT THOSE PLANTS, WE THOUGHT NATURAL GAS WAS GONNA BE A LOT MORE EXPENSIVE THAN COAL.

IT JUST HASN'T WORKED OUT CHANGE ECONOMICALLY.

WE HAVE TO LOOK AT THE CHANGE AND MAKE THE DECISION.

UH, RUDY, UM, WHAT KIND OF INPUT HAVE WE GOTTEN OUTSIDE OF THE NEIGHBORHOODS AND THAT KIND OF THING? HAVE YOU GONE TO THE CHAMBERS? HAVE YOU GONE TO THE BUSINESS COMMUNITIES? YES, SIR.

WHO, WHO HAVE YOU ACTUALLY TALKED TO OUT THERE SO FAR? UH, I'VE, UH, BEEN TO A NUMBER OF OUR ASSISTANCE FAIRS WHERE I'VE TALKED TO CUSTOMERS.

UH, THERE, I'VE, I'VE, UH, UH, I'VE MET WITH THE CHAMBER INFRASTRUCTURE COMMITTEE, UH, TODAY.

I, I THINK I'VE MET WITH THE REAL ESTATE COUNCIL, I RESTAURANT ASSOCIATION AS, UH, I THINK COUNCILMAN PLY ASKED US TO DO.

I I CAN GET YOU A LIST OF WHO ALL I'VE TALKED TO, BUT I, I'VE TALKED TO CUSTOMERS ALL OVER TOWN, SIR.

APPRECIATE IT.

UM, HAVE WE GOTTEN ANY OF YOUR CUSTOMER'S INPUT THAT ARE OUTSIDE OF THE CITY? I WENT AND TALKED TO THE COUNTY, UH, YOU KNOW, AGAIN, I, AGAIN, I THINK IT WAS COUNCILMAN PLI WHO SUGGESTED IT.

UH, THEY ASKED SOME GOOD QUESTIONS.

UH, I'VE GOT, WE'VE GOTTEN, UH, FEEDBACK THERE AND, UH, I AM SURE I CAN GET YOU A LIST OF ALL THE PLACES WE'VE BEEN, BUT YES, WE'VE DONE, UH, I DID A SUBURBAN CITY SUMMIT, I'M SORRY, SUMMIT JUST LAST, UH, WEEK WHERE I TALKED TO THE, THE MAYORS AND CITY MANAGERS OF, UH, OUR SUBURBAN CITIES AND GOT A LOT OF GOOD FEEDBACK THERE AS WELL, SIR.

AND, UH, AND, UM, I, I'M, I'M STILL, YOU KNOW, THERE'S THOSE BIG GROUPS THAT TOTAL UP TO $73 MILLION.

I HAVEN'T REALLY SEEN ANY BACKUP WHAT THAT, WHAT THOSE DOLLARS ARE GOING FOR.

I UNDERSTAND YOU WANT TO, UH, THE GROWTH IN TECHNOLOGY, I, I GOT QUESTIONS ABOUT THAT.

THE TECHNOLOGY CAN, I MEAN, OKAY, IT'S 20 YEARS OLD, I GET THAT.

BUT DO WE HAVE TO DO THAT NOW? WE HAVE TO DO THAT NOW.

I MEAN, IS IT BREAKING DOWN? WELL, IT, IT, IT IS, THE, THE PROBLEM IS THE TECHNOLOGY IS SO OLD THAT THE VENDORS WE USE TO MAINTAIN IT WHEN IT GOES DOWN ARE, IT'S BECOME AN OBSOLETE TECHNOLOGY.

SO PRETTY SOON WE'RE NOT GONNA HAVE ANYBODY WHO CAN COME FIX IT.

AND THAT'S THE PROBLEM, SIR.

AND THEN THE GROWTH, I I, I DIDN'T QUITE UNDERSTAND THAT HAVING YOU BEEN KEEPING UP WITH THE GROWTH OVER 20 YEARS WITH OUR CURRENT, WITH OUR CURRENT BUDGET.

BUT WE'RE ALWAYS LOOKING YEARS IN ADVANCE OF WHERE THE GROWTH IS GONNA BE.

IT TAKES US YEARS TO GET A SUBSTATION AND TO BUY PROPERTY TO GO THROUGH THE PROCESS TO GET PLANS TOGETHER.

AND SO, YOU KNOW, WE, WE'VE GOT, AND, AND WE CAN, WE'LL SIT DOWN AND WALK YOU THROUGH THE LIST OF WHAT'S IN THAT BUCKET, BUT, OKAY.

I, I, I TOO WAS UNDER THE ASSUMPTION THAT, UM, AS YOU GROW, YOU START COLLECTING THAT NO, SIR.

THAT RATE FROM, SIR, YOU, YOU DON'T COLLECT THE REVENUE FROM THOSE NEW CUSTOMERS IN A SUBSTATION.

YOU KNOW, YOU, YOU, YOU PUT THE SUBSTATION IN AND THEN THE GROWTH HAPPENS YEARS AFTER THAT.

SO THERE'S NOT AN IMMEDIATE REVENUE BUMP JUST 'CAUSE YOU'VE GONE OUT AND BUILT A NEW SUBSTATION.

YEAH, I'D LIKE TO SEE THAT.

ABSOLUTELY.

UM, LET'S SEE.

I'VE GOT SOME MORE QUESTIONS HERE.

I'M RUNNING OUTTA TIME.

BUT, UM, THE BACKUP DATA, AGAIN FOR ALL OF THOSE CATEGORIES, WHAT, WHAT IS, WHAT IS REALLY IN THOSE BUCKETS, SIR, I CAN ASSURE YOU THAT BEN WOULDN'T COME UP WITH A NUMBER UNLESS HE'S GONE THROUGH IT WITH THE FINE TOOTH COMB.

YEAH, I'D LIKE TO SEE SOME OF THAT ALSO.

IN THE MAJOR CATEGORIES, UH, AND THE BACKUP FOR THAT, UM, ONE OF THE THINGS THAT CONCERNS ME IS THIS, UH, RATE CASE INFORMATION THING IT HAS ON HERE, THE VERY FIRST ONE, THE 3.85, WHICH IS $3 AND 84 CENTS PER MONTH.

BUT THEN DOWN AT THE BOTTOM IN SUMMARY, WE GOT IT'S $5 AND 10 CENTS.

SO THAT'S WHAT'S CONFUSING TO ME.

AND I THINK THAT WOULD BE CONFUSING ALSO TO SOMEBODY PICKING THAT UP.

WELL, WHAT IS THE RATE INCREASE HERE? SO, UM, YEAH, I THINK THIS COULD BE CLEANED UP AS WELL.

UH, I'LL CHIME BACK IN, SIR.

UH, USE DATA TO FIND OUT WHO ARE THE OUTLIERS IN HIGH ENERGY USAGE PER SQUARE FOOT FOR THEIR HOMES AND LOW INCOME ZIP CODES, AND BE PROACTIVE ABOUT GOING OUT TO THOSE, THOSE HOMEOWNERS OR RENTERS AND SEEING WHAT WE CAN DO TO HELP THEM TIGHTEN UP THEIR HOUSES AND REDUCE THEIR ENERGY CONSUMPTION TO MAKE THEIR BILLS MORE AFFORDABLE.

COUNCILS MEMBER PERRY.

COUNCIL MEMBER.

BRAVO.

THANK YOU, RUDY.

I, UH, I APPRECIATE HOW YOU MENTIONED, UM, THAT YOU'RE NOW OPEN TO A REVIEW OF YOUR GOVERNANCE AND OR, UH, ORGANIZATIONAL STRUCTURE.

UH, THAT'S MUSIC TO MY EARS.

UH, I'D LOVE TO MEET WITH YOU AND MAYBE SOME OF THE BOARD MEMBERS AND GET INTO THE SPECIFICS OF WHAT THAT COULD LOOK LIKE.

UM, I, I APPRECIATE THAT YOUR TEAM CAME AND MET WITH ME LAST WEEK.

SO WE COULD SIT DOWN AND LOOK AT THE FINER DETAILS OF, UH, HOW CAN WE,

[01:35:01]

UM, I AM STILL INTERESTED IN SEEING MORE FIRM COMMITMENTS ON TIMELINES ON WHAT C P S ENERGY IS GONNA BE DOING DIFFERENTLY.

UH, I THINK THAT'S IMPORTANT FOR US TO SEE.

I AM ALSO DISAPPOINTED THAT THE RATE ADVISORY COMMITTEE'S NOT PLAYING A LARGER ROLE RIGHT NOW.

I, I THINK THAT, I THINK THAT WAS, THERE WAS AN EXPECTATION THAT THEY WOULD BE ABLE TO PLAY MORE OF A ROLE, UM, BEFORE WE DO CONSIDER, BEFORE THE COUNCIL CONSIDERS A RATE INCREASE.

UM, AND THEN, YOU KNOW, REED BROUGHT UP A COUPLE THINGS THAT THAT CAUGHT MY ATTENTION.

UH, AND SO I WENT BACK AND I LOOKED AT YOUR WEBSITE AGAIN, CPS ENERGY'S WEBSITE ON NATURAL GAS, YOU KNOW, AND I SEE THAT IT STILL DESCRIBES NATURAL GAS AS AN ENVIRONMENT, ENVIRONMENTALLY FRIENDLY, ABUNDANT FUEL SOURCE.

AND I JUST QUESTIONED THE ACCURACY OF, OR HOW, HOW NATURAL GAS IS BEING DEFINED AS ENVIRONMENTALLY FRIENDLY.

YOU KNOW, IF I WERE TO ASK A LOT OF MY FRIENDS WHO ARE IN THE ENVIRONMENTAL COMMUNITY, UM, I DON'T THINK THEY WOULD DESCRIBE FRACKING AS ENVIRONMENTALLY FRIENDLY.

UM, AND FURTHERMORE, UM, YOU KNOW, HERE ON, ON YOUR WEBPAGE IT SAYS THAT, UH, IT IT PRODUCES LESS CARBON AND OTHER HARMFUL EMISSIONS THAN, THAN COAL.

AND THE TRUTH IS, WHEN YOU BURN NATURAL GAS, IT'S MUCH CLEANER BURNING THAN COAL.

BUT YOU ALSO HAVE TO LOOK AT THE FULL LIFECYCLE.

AND WHAT ABOUT WHEN IT'S PRODUCED AND WHEN NATURAL GAS IS PRODUCED, IF THERE ARE HIGH LEAK RATES, WE'RE NOT JUST LOOKING AT CARBON, WE'RE ALSO LOOKING AT C O TWO EQUIVALENT.

WHAT ARE THE EQUIVALENT? WHAT, YOU KNOW, WHAT ARE THE OTHER, UH, WHAT'S THE GLOBAL WARMING POTENTIAL OF THAT GAS? AND IT'S MUCH MORE THAN CARBON DIOXIDE AND, YOU KNOW, BY 80 TIMES AS, AS POTENT WHEN IT COMES TO TRAPPING HEAT.

AND SO BECAUSE OF THAT, THOSE NATURAL GAS LEAKS ARE RESPONSIBLE FOR MOST OF THE, OF THE, UM, CLIMATE CHANGE THAT WE'RE EXPERIENCING RIGHT NOW.

AND SO THAT'S, THAT'S A CONCERN OF MINE.

AND I WANT TO POINT OUT TO EVERYONE THAT, YOU KNOW, A LOT OF PEOPLE WERE PROBABLY GONNA ASSUME THAT C P S ENERGY GETS MOST OF THEIR NATURAL GAS FROM THE, FROM THE EAGLE FORD SHALE, YOU KNOW, IT'S, IT'S RIGHT HERE JUST SOUTH OF US.

BUT IN FACT, C P S ENERGY GETS A LARGE MAJORITY OF THEIR NATURAL GAS FROM THE PERMIAN BASIN AND THE PERMIAN BASIN IS WIDELY UNDERSTOOD TO BE THE WEAKEST NATURAL GAS FIELD IN THE COUNTRY.

AND SO I KNOW THAT C P S ENERGY, I'VE, I'VE HEARD C P SS ENERGY, UH, REPRESENTATIVES IN THE PAST DESCRIBE C P S ENERGY AS, AS, UM, WELL, THAT, THAT NATURAL GAS IS THE CORE OF THE BUSINESS.

AND SO AS LONG AS WE'RE COMMITTED TO USING NATURAL GAS IN ANY WAY, AND I THINK WE'RE STUCK WITH NATURAL GAS, YOU KNOW, IN DIFFERENT WAYS, BUT AS LONG AS WE DO, AND I, I, AND I'M, I'M GLAD THAT REED WANTS TO MOVE AWAY FROM, FROM FOSSIL FUELS AND, AND REDUCE OUR CARBON INTENSITY.

SO I'M REALLY GRATEFUL FOR THAT.

BUT FOR THE TIME BEING, I WANT TO SEE A COMMITMENT FROM C P S ENERGY TO WHEN WE DO BUY NATURAL GAS, THAT WE ARE MAKING SURE THAT IT'S GONNA BE THIRD PARTY CERTIFIED FOR BEING PRODUCED IN A WAY WHERE THE LEAK RATES ARE, WHERE, WHERE THE PRODUCERS ARE USING BEST PRACTICES TO REDUCE THEIR LEAK RATES.

C COUNCILMAN, THE ONLY RESPONSE I HAVE TO THAT IS WE ARE A, AN ELECTRIC AND NATURAL GAS UTILITY.

SO NATURAL GAS IS ABSOLUTELY PART OF OUR BUSINESS PLAN.

UH, WE TRY TO DO OUR BEST TO, UH, TO, TO FIND THE LEAKS IN OUR SYSTEM AND FIX 'EM QUICKLY.

UM, YOU KNOW, UH, WE ARE GONNA BE WORKING ON DRIVE TIME ON OUR, ON OUR LEAK TOOL THAT WE, THAT WE, THAT WE BOUGHT SO THAT YOU CAN SEE THAT AND, YOU KNOW, WE CAN, WE CAN BE TRANSPARENT ABOUT HOW WE'RE USING THAT TO FIX OUR SYSTEM.

UH, WE USE A LOT OF GAS AND THERE IS LIMITED SUPPLY.

UH, WE LOOK, WE'VE LOOKED INTO IT AND WE'RE GONNA CONTINUE, UH, TO PUSH, YOU KNOW, THE, THE, THE, UH, CHALLENGE THAT YOU'VE GIVEN US ON FINDING, UH, MORE ENVIRONMENTALLY, YOU KNOW, SOUND NATURAL GAS SUPPLIERS.

UH, BUT, YOU KNOW, BUT, BUT THOSE SUPPLIERS ARE, ARE LIMITED.

SO WE'VE GOT TO HAVE THE GAS WE NEED TO RUN OUR SYSTEM.

UH, BUT CERTAINLY THAT IS AN OBJECTIVE WE CAN CARRY FORWARD, YOU KNOW, IN IDENTIFYING GAS PROVIDERS THAT, THAT CAN HELP US, YOU KNOW, BE, BE AS, AS ENVIRONMENTALLY RESPONSIBLE AS WE POSSIBLY CAN, SIR.

TO GET INTO THE METHANE EXCURSIONS, BUT WE IN THE PLANTS FOR 30 SOMETHING YEARS, WE HAD FUGITIVE MISSION RULES 'CAUSE WE WERE UNDER A DIFFERENT REGULATOR.

BUT I'LL SAY IT'S LIMITED.

WE'VE LOOKED, I CAN SEE MR. WILLIAMS IS READY TO RESPOND AS WELL, BUT I JUST, REAL QUICK, REAL, AND I DO WANT TO HEAR YOUR RESPONSE AS WELL, MR. MR. REED.

BUT REAL QUICK, UM, UH, WHAT WAS I GONNA SAY ABOUT THAT? I'LL GO AHEAD, MR. WELL, LEMME JUST SAY, DO YOU WANT, DO YOU WANNA USE THE MICROPHONE SO EVERYONE AT HOME CAN, I CAN HEAR ME? NO.

FOR, FOR THE PEOPLE AT HOME WHO ARE LISTENING.

YEAH, THANKS.

I, I AGREE WITH YOU.

YOU'RE ABSOLUTELY RIGHT.

THESE ARE NOT HARD PROBLEMS TO SOLVE.

I KNOW THERE'S NOT A LOT OF SUPPLIERS TODAY THAT WANT

[01:40:01]

THOSE RULES ARE VERY ADAPTABLE TO THE OIL FIELD.

AND I BELIEVE THAT IF WE USE THE FACT THAT IF PEOPLE WANT TO SELL US POWER OR THEY WANT TO CONVERT OUR PLANTS, OR THEY WANT TO PROVIDE A PLANT THAT WE DO A POUCH VERSION, I BELIEVE THAT'S GOTTA BE A CORE PART OF IT.

AND I BELIEVE IT WON'T HAPPEN UNLESS WE, WE DO MAKE IT A CORE PART OF IT.

SO THERE'S TWO THINGS.

ONE, IT'S NOT ONLY JUST FUGITIVE EMISSIONS ON METHANE, YOU'RE ABSOLUTELY RIGHT ON THAT, BUT IT'S CARBON CAPTURE.

OKAY? THE PROBLEM WE'VE HAD ON CARBON CAPTURE IS THAT THEY'VE BEEN TRYING TO GO TO THE PLANTS THAT ARE ALREADY EXISTING.

THINK ABOUT IF WE COULD TAKE THE PLANTS AND PUT 'EM WHERE THE CARBON COULD BE USED TO, TO DO, UH, ENHANCED OIL RECOVERY OR SOMETHING ELSE SO THAT THE PLANT, THE, THE, THE, THE GENERATION PLANTS DON'T HAVE TO BE IN BRAUN AND LAKE.

AND IF YOU CAN OVERLAY THE THING WHERE YOU CAPTURE THE CARBON, WHICH IS THE PLANT WHERE YOU USE THE CARBON, I THINK THERE'S SOME GREAT OPPORTUNITIES.

NOW, I CAN BE PROVEN WRONG, BUT IT DOESN'T MEAN WE CAN'T WORK ON IT.

AND I THINK YOU'RE RIGHT.

SO, I'M SORRY.

AND THE POINT I WAS THANK YOU, REED.

AND THE, THE OTHER POINT I WAS GONNA MAKE IS THAT IN RESPONSE TO WHAT YOU SAID, RUDY, IS THAT C P SS ENERGY'S THE LARGEST GAS AND ELECTRIC UTILITY IN THE NATION.

YES.

WE HAVE THE OPPORTUNITY TO MOVE THE MARKET.

SO YES, THERE MAY BE, UH, SOME LIMITED NUMBER, A LIMITED NUMBER OF SUB GAS SUPPLIERS RIGHT NOW THAT CAN PROVIDE THIRD PARTY CERTIFIED, UH, GAS THAT'S BEEN PRODUCED WITH A, WITH A, USING BEST PRACTICES TO REDUCE THEIR LEAK RATES.

BUT WE HAVE THE OPPORTUNITY TO MOVE THE MARKET AND SEND PRICE SIGNALS AND, AND, YOU KNOW, GET PEOPLE MOVING IN THAT DIRECTION.

SIR, I, I'LL, THE ONLY THING I'D SAY IS WE ALSO HAVE RESPONSIBILITY FOR THAT GAS SUPPLY TO BE RELIABLE AND TO BE AT A RATE WE CAN AFFORD, OUR CUSTOMERS CAN AFFORD.

AND CERTAINLY THERE ARE SOME IMPLICATIONS OF THAT THAT WE JUST HAVE TO PAY ATTENTION TO.

I I DO NOT DISAGREE WITH YOU.

, IT IS A GOAL WORTHY OF, UH, OF CHASING.

AND I, I, YOU KNOW, I UN I UNDERSTAND AS WELL, UH, YOUR POINT, AND I THINK WE CAN FIND A BALANCE THERE.

STRIKE A BALANCE.

UM, SO THEN, YOU KNOW, ON SPRUCE ONE VERSUS SPRUCE TWO, THOSE ARE OUR TWO COAL PLANTS, RIGHT? WE HAVE SPRUCE ONE, IT'S ABOUT 30 YEARS OLD.

WE HAVE SPRUCE TWO, IT'S ABOUT 10 YEARS OLD.

AND, YOU KNOW, IF YOU TALK TO C P S ENERGY STAFF WHO WORK IN COAL, YOU KNOW, SOME OF THEM WILL TELL YOU THAT THEY ACTUALLY LIKE THE 30 YEAR OLD PLANT MORE BECAUSE IT'S A RELIABLE PLANT.

BECAUSE IT WAS BUILT AT A TIME WHEN A LOT OF PEOPLE WERE BUILDING COAL PLANTS.

WHEREAS OUR 10 YEAR OLD PLANT SPRUCE TOO, A LOT OF THE MANUFACTURERS WHO WERE BUILDING COAL PLANTS, THEY'VE GOTTEN OUTTA THE BUSINESS.

THEIR BEST STAFF HAD MOVED ON.

AND WE TRIED TO BUILD A COAL PLANT WHEN NO ONE ELSE WAS, WHEN, YOU KNOW, THE, I DON'T KNOW, I DON'T KNOW WHAT IT WAS, BUT IT'S NOT AS RELIABLE OF A COAL PLANT BECAUSE PEOPLE WEREN'T IN THE BUSINESS OF BUILDING COAL PLANTS AT THAT TIME.

AND SO IT HASN'T BEEN, YOU KNOW, IT'S BEEN DESCRIBED TO ME AS A LEMON OF A COAL PLANT.

AND SO WHEN WE THINK ABOUT CONVERTING IT TO NATURAL GAS ONE, I WOULD WANT TO KNOW HOW RELIABLE IS IT GONNA BE GOING FORWARD? I KNOW WE HAD TO REPLACE THE GENERATOR ON IT ALREADY.

UM, AND THEN I WOULD ALSO WANT TO KNOW, YOU KNOW, HOW WELL WOULD IT WORK AS A PEAKER? IS IT GONNA BE, UM, IS IT GONNA BE A COMBINED CYCLE? IS IT GONNA BE A SIMPLE CYCLE? IS IT GONNA BE, UM, LIKE WHAT, WHAT TYPE OF A GAS PLANT WOULD IT BE? BECAUSE I'M VERY INTERESTED IN US INVESTING LARGELY IN RENEWABLE ENERGY BECAUSE THE MORE WE'VE INVEST IN RENEWABLE ENERGY, THE LESS WE'LL NEED OUR FOSSIL FUEL BACKUP PLANTS, THE LESS WE'LL NEED EVEN BATTERY STORAGE, WHICH IS STILL VERY, VERY EXPENSIVE.

AND SO IF ON DAYS WHEN THE SUN IS SHINING, WHEN DAYS WHEN IT'S REALLY WINDY, IF WE CAN GET MORE OUT OF OUR RENEWABLES, THEN WHAT OUR BACKUP DOESN'T IS POWER IS ISN'T GONNA MATTER AS MUCH.

AND SO IT, I THINK IT'S IMPORTANT THAT WE HAVE GOOD PEAKERS RU RUDY, BEFORE YOU RESPOND TO THAT, I'M GONNA NUDGE THE WAGON BACK ON THE ROAD HERE.

THIS IS A DISCUSSION.

I APPRECIATE THE STRAW MAN THAT, UM, CHAIR WILLIAMS PUT OUT.

WE'RE NOT LITIGATING THAT PLAN.

WE'RE TALKING ABOUT PROCESS, WE'RE TALKING ABOUT THE RATE REQUEST.

SO RESPOND, UH, BRIEFLY, BUT THEN WE GOTTA WE GOTTA TALK PROCESS AND THEN REQUEST.

ALL OF THE, THE GOALS THAT YOU'VE, YOU'VE, YOU'VE JUST TALKED ABOUT IN MIND.

UH, MY RESPONSE IS THIS, RENEWABLES, WHEN THEY'RE AVAILABLE, THEY'RE TOP OF THE STACK.

THEY GET, WE TAKE THEM FIRST AND EVERYTHING ELSE GETS PUSHED OFF THAT, YOU KNOW, UH, TO, YOU KNOW, TO THE MARGIN.

UH, SO RENEWABLES IS WHAT THE COMMUNITY GETS WHEN WE HAVE RENEWABLES.

UH, COUNCILMAN, I THINK THE SKY'S THE LIMIT ON WHAT WE DO WITH SPRUCE TWO.

SO ANY TECHNOLOGY THAT'S OUT THERE, THE MOST EFFICIENT, THE MOST ENVIRONMENTALLY FRIENDLY, I THINK, YOU KNOW, FRANK HAS DONE A LOT OF THAT WORK.

AND I THINK WE'RE GONNA, YOU KNOW, WHATEVER DECISION WE MAKE ON SPRUCE WHEN THE TIME COMES WILL BE WITH

[01:45:01]

SO, SO WE CAN DO ANYTHING WE WANT WITH SPRUCE TWO.

UM, I, I, I'M LOOKING AT THE CA THE RATE CASE INFORMATION.

UM, AND I, I, UNDER WHAT INVESTMENTS DOES THE RATE INCREASE COVER? YOU HAVE A, UH, FOUR CATEGORIES THAT I, I THINK COUNCILWOMAN BRAN MENTIONED WERE SOMEWHAT VAGUE.

I THINK WHAT'S NOT INCLUDED IN THE RATE INCREASE IS MORE SPECIFIC THAN WHAT, WHAT WE ARE GETTING OUT OF IT.

SO I, I'D LIKE TO SEE THAT, UM, EXPANDED.

AND, AND THE REASON IS, I MEAN, YOU'VE HEARD A LOT OF PEOPLE HERE TODAY SAY THAT, UM, WE'RE NOT GETTING GOOD FEEDBACK FROM THE COMMUNITY.

AND, AND THEN COUNCILMAN BLAY HAS MENTIONED WE ARE PARTNERS.

I, I, I NEED TO HAVE THAT MESSAGE.

I NEED TO GO OUT THERE AND SAY, I KNOW IT'S VERY DIFFICULT AND THIS IS THE WORST POSSIBLE TIME, BUT THIS IS WHAT WE NEED, WHY WE NEED IT.

UM, THAT I NEED TO HAVE A VALID, SPECIFIC, UM, EXAMPLES.

I NEED TO HAVE VALID SPECIFIC EXAMPLES OF WHAT WE'RE GONNA BE GETTING FOR THAT RATE INCREASE.

UM, AND I DON'T KNOW IF THIS IS, IF THERE'S ANOTHER DOCUMENT OUT THERE THAT IS MORE SPECIFIC THAT I HAVEN'T SEEN COUNCILWOMAN, WE CAN TAKE THAT AND DO WHATEVER WE WANT WITH IT.

I MEAN, IT'S, AGAIN, IT, THAT'S DOCUMENT IS A, IS THESE DOCUMENTS ARE ALWAYS A WORK IN PROGRESS.

UH, SO WE'LL, WE'LL, WE WOULD BE GLAD TO HAVE YOUR FEEDBACK.

BEYOND ANY CHALLENGES WE HAVE WITH RELIABILITY.

UM, WELL, MY FEEDBACK IS, I JUST NEED VERY SPECIFIC EXAMPLES.

I MEAN, WHAT, WHEN I'M A RATE PAYER AND I'M LIVING IN MY HOME YEAH.

NO MATTER WHAT SIZE OR MY APARTMENT, WHAT AM I, WHAT'S THE RELIABILITY? I MEAN, I THINK THAT'S THE NUMBER ONE THING, RIGHT? WHAT, WHAT SPECIFICALLY CAN YOU SAY THIS IS HOW IT'S GONNA CHANGE YOUR DAILY LIFE, HOW IT'S GONNA MAKE YOUR LIFE BETTER, EASIER? I'M, I'M HAVING THOSE CONVERSATIONS EVERY DAY, COUNCILWOMAN.

AND WHEN I TELL THE, THE QUESTION THEY ASK IS, WILL THIS RATE CASE MAKE YOU MORE PREPARED, YOU KNOW, FOR THE WINTER SEASON? I, AND MY ANSWER TO THAT QUESTION IS ABSOLUTELY YES.

WE'VE DONE $2 MILLION WORTH OF WINTERIZATION THIS YEAR.

THERE'S $31 MILLION WORTH OF, UH, WINTERIZATION IN THE, IN THE, IN THE NEXT COUPLE OF YEARS AS, AS A RESULT OF, UH, SOME REGULATORY, UH, UH, UH, COMPLIANCE THAT WE'RE GONNA HAVE, UH, TO MEET.

AND THEN WE'RE GONNA KEEP DOING MORE, UH, GOING INTO THE FUTURE.

SO IT'S HARD, YOU KNOW, IF SOMEBODY'S JUST READING IT, IT'S HARD TO PROVIDE THAT KIND OF CONTEXT UNLESS YOU'RE IN FRONT OF 'EM TALKING TO 'EM.

AND, AND I'LL TELL YOU, YOU KNOW, THE BUCKETS ARE THE BUCKETS.

YOU KNOW, I HAVE TO EXPLAIN TO THEM, YOU KNOW, THE SPECIFICS OF WHAT THAT IS.

AND I, I DON'T KNOW IF WE NEED TO ADD PICTURES OR WHAT, BUT I, I'LL BE GLAD TO, TO, TO TRY TO FIGURE THAT OUT.

WELL, I, I MEAN, WE'RE, WE, YOU HAVE THE FLOOR.

WHAT ARE THE SPECIFICS? WHAT WOULD YOU, WHAT DO YOU TELL A PERSON WHEN YOU'RE SITTING? WELL, THE, THE SPECIFICS ARE TO PROTECT, UH, EQUIPMENT THAT IS EXPOSED THAT CAN FREEZE DURING THE WINTERTIME, BECAUSE ALL OF THAT IS TEMPORARY.

AND, YOU KNOW, OUR PLANTS ARE BUILT FOR THE SUMMER RUN SEASON.

THEY'RE BUILT TO GET HEAT OUT OF THE PLANT.

EVERYTHING THAT WE DO IN THE WINTERTIME, WE PUT IT UP AND WE TAKE IT DOWN, RIGHT? BECAUSE, YOU KNOW, IT'S BECAUSE OUR PLANTS AREN'T DESIGNED TO RUN TO, TO, TO, TO KEEP HEAT IN.

SO WE HAVE TO BUILD STRUCTURES AND PUT HEATERS AND, AND, AND TRACER WIRE AND THINGS ON, UH, THE COMPONENTS OF A POWER PLANT TO ENSURE THAT THEY DON'T FREEZE WHEN IT GETS, YOU KNOW, INTO THE TEENS, WHICH IT DOESN'T HAPPEN OFTEN, BUT WE, WE FOUND OUT IN FEBRUARY IT CAN HAPPEN.

SO THERE ARE GOING TO BE REQUIREMENTS FROM THE PUBLIC UTILITY COMMISSION OF TEXAS ON EVERY GENERATOR THAT SAY, YOU HAVE TO DO MORE OF THESE THINGS GOING FORWARD TO BE IN COMPLIANCE WHEN WE COME OUT AND INSPECT YOU.

SO WHEN WE SAY INFRASTRUCTURE RESILIENCY, IT'S, IT IS THOSE TYPES OF ACTIVITIES I THINK WE NEED TO EXPECT.

I'D LIKE TO, TO SEE MORE SPECIFIC EXAMPLES, PROTECTING EQUIPMENT, COMPLIANCE, THOSE THINGS.

I UNDERSTAND THOSE THINGS ARE THAT, UH, YOU KNOW, OUR COMMUNITY WILL UNDERSTAND WITHOUT PICTURES.

YOU KNOW, THEY'RE, THEY'RE SMART.

OUR, OUR, OUR CITY IS SMART.

THEY JUST NEED TO HEAR THE ACTUAL RIGHT BOOTS ON THE GROUND, REAL THINGS THAT THAT'S GONNA CHANGE THEIR DAY TO DAY WITH CCPS.

THIS, UH, POTENTIAL C P S RATE INCREASE.

UM, THE OTHER SIDE OF THIS COIN IS, UH, YOU KNOW, WE'RE, WE'RE, WE'RE ASKING THEM TO DO SOMETHING FOR C P S.

UH, AND I ASKED YOU THIS LAST TIME, WHAT, WHAT RECOURSE DO WE HAVE IF, UM, YOU KNOW, THEY DON'T SEE THESE THINGS.

WE'RE TELLING 'EM ALL THESE THINGS ARE GONNA, ARE GONNA HAPPEN, AND WHAT HAPPENS IF WE DON'T? AND YOU MENTIONED THAT, UM, WELL, YOU KNOW, IT'S YOUR JOB AND WELL, I WANT YOU TO KEEP YOUR JOB, RUDY, THE GENERAL POPULATION IS NOT AS CONCERNED ABOUT THAT, RIGHT? I MEAN, WE REALLY NEED TO HAVE SOMETHING LIKE WHAT ACCOUNTABILITY ARE WE SHOWING THEM? ARE WE GOING TO, TO OFFER THEM WHEN, YOU KNOW, AFTER THE RATE INCREASE AND THEY DON'T SEE RIGHT AWAY? OR, AND MAYBE THEY WON'T SEE IT RIGHT AWAY, BUT THEY DON'T SEE THE CHANGES.

UH, WHAT, WHAT ARE WE GONNA TELL THEM? WHAT, WHAT, WHAT'S THEIR RECOURSE? WELL, THEY'RE OVERALL, YOU WOULD EXPECT THE CUSTOMER EXPERIENCE TO IMPROVE OUR ABILITY TO RESPOND DURING STORMS. THE INFORMATION THAT WE'RE PUTTING OUT, YOU KNOW, TO THEM DURING, YOU KNOW, EMERGENCIES BECAUSE OUR SYSTEMS HAVE BEEN UPGRADED.

YOU KNOW, IF, IF WE, THAT, THAT TECHNOLOGY ISSUE IS A BIG ISSUE, YOU KNOW, THE CUSTOMER EXPERIENCE WILL ERODE DRASTICALLY

[01:50:01]

IF CUSTOMERS CAN'T GET A HOLD OF US, OR THEY CAN'T GET INFORMATION BECAUSE OUR SYSTEMS ARE DOWN ALL THE TIME, THE CUSTOMER EXPERIENCE WILL ERODE AND IT IT WILL ERODE QUICKLY.

SO THESE, SO, SO THAT'S WHAT I WOULD TELL YOU IS IF THEY'RE, IF, IF, IF THEIR EXPERIENCE DOESN'T IMPROVE OVERALL WITH HOW THEY INTERACT WITH C P S ENERGY, THAT'S THE BIGGEST TELLTALE SIGN THAT WE HAVEN'T DONE WHAT WE'RE SUPPOSED TO DO.

YOU KNOW, AND THAT ULTIMATELY IS THE RESPONSIBILITY OF EVERY LEADER IN THIS ROOM, MA'AM.

YOU KNOW, DEANNA WHO HA WHO'S RESPONSIBLE FOR THE CUSTOMER EXPERIENCE, AND WE'RE ALL RESPONSIBLE FOR THE CUSTOMER EXPERIENCE, BUT SHE'S THE ONE, YOU KNOW, AT THE FRONT LINE WITH THEM, YOU KNOW, EACH AND EVERY DAY.

YOU KNOW, SHE WILL KNOW IF OUR CUSTOMERS ARE UPSET ABOUT THEIR EXPERIENCE WITH C P SS ENERGY.

I WANNA OFFER, UM, AN OPPORTUNITY.

I, I KNOW YOU STARTED TO TALK ABOUT THE STATE LAW DISCUSSION, BUT I DIDN'T, I DIDN'T REALLY CATCH IT.

I THINK YOU GOT SORT OF CUT OFF.

DO YOU MIND COMING UP AND JUST FINISHING THAT UP? I'M SORRY, I DIDN'T CATCH YOUR NAME.

GENERAL COUNSEL, SHANNON RAMIREZ IS OUR, IS OUR THE CHIEF LEGAL OFFICER.

THANK YOU, MA'AM.

AND THERE WAS A, JUST TO CLARIFY, THERE WAS A LITTLE BIT OF AN OVERLAY OF DISCUSSION.

SO I WANNA MAKE SURE THAT I UNDERSTOOD THE QUESTION.

UM, I THINK SOMETIMES THAT THERE'S CONFUSION ABOUT WHAT IS, UM, A TAX ABATEMENT VERSUS WHAT IS A CREDIT.

UM, WE DON'T HAVE ANYTHING TO DO WITH THAT.

UM, I THINK THERE WAS SOME QUESTION ABOUT THE EXEMPTIONS ISSUED FROM THE CITY.

I'D RELY ON ANDY TO ANSWER THAT.

UM, BUT WHAT I WANTED TO BE CLEAR ABOUT IS THAT IF WHAT YOU'RE SAYING IS SOMETIMES PEOPLE FEEL LIKE THEY PAY DIFFERENT PRICES, THAT IS NOT BECAUSE PEOPLE ARE GETTING DIFFERENT, UM, THEY'RE NOT CHARGED DIFFERENT THINGS IF THEY'RE UNDER THE SAME RATE.

WE AS UNDER STATE LAW HAVE TO TREAT ALL OF OUR CUSTOMERS THE SAME IN TERMS OF APPLYING THAT RATE FOR THOSE PEOPLE THAT ARE IN THAT RATE CATEGORY.

SO WHAT DETERMINES RATE CATEGORIES? THEY DON'T LET ME TALK ABOUT NUMBERS AT ALL.

, THEY, SHE'S ACTUALLY PRETTY SMART.

CAN HANDLE NUMBERS TOO.

SO RITA ACTUALLY MENTIONED A COUPLE MEETINGS AGO.

IT'S REALLY THE USAGE PROFILE OF A CUSTOMER GROUP.

AND THAT'S IT.

SO, YOU KNOW, USAGE RESIDENTIAL CUSTOMERS USE IT IN A CERTAIN WAY.

THEY PUT A CERTAIN BURDEN ON THE SYSTEM.

AND SO WE WILL, UH, YOU KNOW, IDENTIFY THE COST THAT'S SIGNIFICANTLY DIFFERENT THAN A, YOU KNOW, A DATA CENTER OR A LARGE CUSTOMER MANUFACTURER, THINGS OF THAT.

SO THAT HISTORICALLY IS HOW THE INDUSTRY SETS, UH, YOU KNOW, THOSE, THOSE RATES.

AND THAT'S WHAT OUR RATES REFLECT.

I MEAN, I'M HEARING USAGE, RIGHT.

IF YOU HAD TO BOIL IT DOWN, IT'S USAGE.

SO, UM, AND FINALLY, I, UM, I JUST WANNA THANK COUNCILMAN WILLIAMS FOR TALKING ABOUT THE, THIS, THE, THE ECONOMICS OF, OF CLOSING DOWN THE SPRUCE, UM, PLANTS.

I, I THINK, UM, YOU KNOW, I LOVE GOOD N B A SPEAK.

I LOVE HEARING SUNK.

AND WE, UM, YOU KNOW, JUST THAT I THINK ECONOMICALLY, I, I AGREE IT MAKES MORE SENSE.

I ALSO THINK ETHICALLY IT MAKES MORE SENSE FOR OUR COMMUNITY.

IT JUST SEEMS TO BE WHAT, WHAT WHAT WE'RE CALLING FOR AS A COMMUNITY.

AND I DO WANNA FINALLY THANK MELISSA SOLA.

UM, I'VE BEEN YELLING AND SCREAMING FOR A COMMUNICATIONS PLAN SINCE FEBRUARY.

AND THERE'S A, I, I SAW SOMETHING ON PAPER AND I'M DOING THE HALLELUJAH EMOJI 'CAUSE YAY.

I, I'M JUST REALLY, REALLY EXCITED TO KNOW THAT THAT'S IN THE WORKS.

I HAD TO PHYSICALLY SEE IT AND HOLD IT IN MY HAND TO FEEL BETTER ABOUT IT.

AND I KNOW IT'S, UM, A WORK IN PROGRESS.

BUT I WANNA THANK YOU FOR THAT.

THANK, AND THANK YOU FOR YOUR INPUT.

UH, WE, YOU, WE REALLY, I HOPE YOU'VE SEEN SOME OF YOUR INPUT REFLECTED IN THAT DOCUMENT.

HDA, COUNCIL MEMBER CASTILLO.

THANK YOU MAYOR.

AND THANK YOU FOR THE CLARIFICATION THAT THERE ARE DIFFERENT BUCKETS AND THAT'S WHY WE'RE HAVING A CONVERSATION ABOUT, UH, RATE DESIGN, UM, BECAUSE IT IS INEQUITABLE.

UM, BUT I WANTED TO POINT OUT TO SLIDE 24, UH, I'M CONCERNED, RIGHT, UH, AS FOLKS HAVE POINTED OUT, WE'RE SEEING AN INCREASE IN PROPERTY TAXES AND IN SEVERAL OTHER AREAS.

AND WHILE THAT DOES NOT HAVE TO DO WITH C P S ENERGY, I AM CONCERNED WITH THE OVERALL BURDEN THAT SAN ANTONIO RESIDENTS WILL BE PICKING UP, UH, BASED OFF OF THE TEXAS CITIES COMBINED RESIDENTIAL BILL COMPARISON WITH THE PROPOSED RATE INCREASE, SAN ANTONIO RESIDENTS WOULD BE PAYING MORE THAN HOUSTON AND AUSTIN RESIDENTS.

UM, THAT GIVES ME A DEEP CONCERN.

UM, BUT I DO APPRECIATE YOU ALL PROVIDING THIS VISUAL.

UM, AND IT WOULD BE HELPFUL IF YOU CAN PROVIDE US SIMILAR GRAPHIC FOR, UM, LARGE LOCAL COMMERCIAL BUSINESSES AS WELL AS INDUSTRIAL.

UM, SO THAT WAY WE CAN, UM, HAVE A GRAPH FOR THAT AS WELL.

I WILL, WE'LL GET YOU THAT INFORMATION.

UH, UH, COUNCILMAN, BUT I WILL TELL YOU, BUSINESSES IN SAN ANTONIO PAY MORE THAN THEY WOULD IN THE COMPETITIVE MARKETS IN TEXAS.

SO WE, WE WILL PROVE THAT TO YOU.

BUT, UH, YEAH, WE PAY THERE, WE PAY HIGHER RATES IN SAN ANTONIO THAN MOST OF THE REST OF THE STATE FOR, FOR, FOR BUSINESS BUSINESS CUSTOMERS.

ALL RIGHT.

I LOOK FORWARD TO RECEIVING THAT DATA.

COUNCIL MEMBER PERRY.

AND I SAID THIS LAST TIME, IT'S NOT JUST THIS 3.85 AND WE HAD THAT DISCUSSION ABOUT PLACEHOLDERS AND WHAT HAVE YOU.

WELL ACTUALLY, MA'AM, YOU, YOU KIND OF TOUCHED ON WHAT I WAS GONNA TALK ABOUT ALSO IS ABOUT, IT'S NOT JUST,

[01:55:01]

BUT, UM, I, I WOULD SAY THAT, UH, YOU KNOW, EVEN IN YOUR DOCUMENTS IT SAYS WE'RE GONNA HAVE MORE FREQUENT RATE, RATE INCREASES THAN WHAT WE HAD IN THE PAST.

AND HERE WE SEE AN INSTANCE HERE WHERE WE'RE NOT REALLY TALKING ABOUT 3.85.

YOU'RE SHOWING VERY CLEARLY THAT IT'S 14.85 OVER THE NEXT FIVE YEARS.

SO THAT'S WHAT I'M CONCERNED ABOUT AS WELL.

I KNOW, I KNOW WHAT YOU, I NOT GOING INTO THAT NUMBER, SIR.

YOU CAN SAY, YOU CAN KEEP SAYING IT, BUT THAT IS, WE'RE TALKING ABOUT 3.85 TODAY.

THAT'S CORRECT.

BUT ON YOUR CHARTS AND DATA, IT SHOWS A TOTAL OF 14.85 OVER THE NEXT FIVE YEARS.

SO THAT, I'M CONCERNED ABOUT THAT ALSO ON JUST BEING A PLACEHOLDER, PUTTING IT ON A DOCUMENT, UH, YOU KNOW, PUTS IT OUT THERE THAT YEAH, WE'RE GONNA PROBABLY HAVE MORE RATE INCREASES HERE OVER THE NEXT FOUR YEARS AFTER, YOU KNOW, DEPENDING ON WHAT HAPPENS WITH THIS ONE.

SO THAT, THAT REALLY CONCERNS ME.

UM, AND I NEVER, I, I DIDN'T SEE ANYTHING BACK.

IF, UH, IF THIS OTHER FI AND YOU PUT IT IN HERE, THIS DOESN'T INCLUDE THE 500 AND SOMETHING MILLION DOLLARS THAT IS STILL DISPUTED OUT THERE ABOUT WHAT THE IMPACT WOULD BE IF WE DON'T, IF WE'RE NOT SUCCESSFUL WITH THAT, JUST PRORATED CERT'S ABOUT THREE BUCKS TOTAL.

IF, IF, IF WE PAID THE FULL BILLION DOLLARS IN, IN FUEL COSTS, IT'D BE ABOUT $3 A MONTH.

THAT'S THE NUMBER OVER, OVER 25 YEARS.

BUT I THOUGHT THAT THE THREE BUCKS WAS INCLUSIVE OF WHAT WE'VE ALREADY PAID.

NO SIR.

A DOLLAR 26 IS WHAT WOULD BE INCLU WOULD BE APPROVED BY THIS REGULATORY ASSET.

THE QUESTION YOU'RE ASKING IS WHAT IF, WHAT ABOUT THE OTHER 563 MILLION, WHATEVER THE NUMBER IS, IF THE WHOLE BILLION DOLLARS, UH, YOU KNOW, IF WE HAD TO PAY THE WHOLE BILLION DOLLARS OUT, IT'D BE ROUGHLY $3.

BUT RIGHT NOW, WE'RE ONLY ASKING FOR A DOLLAR 26 FOR WHAT WE'VE PAID THAT WE BELIEVE IS IS REASONABLE.

I I, I SEE IT NOW ON YOUR, YOUR CHART HERE, SIR.

AGAIN, THERE'S A BUNCH OF DIFFERENT NUMBERS ON HERE.

IT'S A LITTLE CONFUSING.

SORRY, Y'ALL HAVE ASKED A LOT OF, Y'ALL HAVE ASKED A LOT OF GOOD QUESTIONS, .

UM, SO ANYWAY, UH, I HAD ANOTHER QUESTION HERE AGAIN ABOUT, UH, THE, THE COAL PLANTS, BUT I'LL, I'LL LET THAT GO SINCE WE'RE JUST TALKING ABOUT THIS RATE INCREASE RIGHT NOW, AND WE'LL, WE'LL, WE'LL FOLLOW UP WITH THAT LATER.

ALSO, UM, I, I THINK THAT'S IT FOR ME RIGHT NOW.

THANK YOU, SIR.

EXCUSE ME.

COUNCIL MEMBER PERRY, COUNCIL MEMBER ROTO GARCIA.

UM, I, I FORGOT TO MENTION, BUT SOMETHING THAT COUNCILMAN AVIO, HDA AND COUNCILMAN VRAN MENTIONED ABOUT SPECIFICS ON PAGE 16 OF YOUR UPDATE YESTERDAY, YOU SENT US A 35 PAGE DOCUMENT THAT HAD SOME MESSAGING POINTS THAT I THINK SHOULD HAVE BEEN INCLUDED IN THAT.

AND IN REGARD TO THE QUESTION.

SO IT MAKES IT MORE, UM, HOW SHOULD I SAY IT? JUST, UH, WITHOUT SAYING, WITHOUT USING PICTURES, IT MAKES IT MORE, UH, MANAGEABLE FOR ME TO TELL MY CONSTITUENTS.

SO, AND YOU HAD INFRASTRUCTURE ON THERE, YOU TALKED ABOUT ESSAYS, GROWTH PROJECTED, UM, TO, YOU DIDN'T SAY, UH, A MILLION MORE PEOPLE WERE COMING BY A CERTAIN TIME, BUT YOU KIND OF TALKED ABOUT THAT GROWTH.

UM, YOU ALSO TALKED SPECIFICALLY ABOUT HOW OUR TECHNOLOGY PLATFORM IS MORE THAN 20 YEARS OLD.

THAT'S THE TYPE OF THING THAT YOU ALREADY HAVE IN THE COMMUNICATION TO US, BUT I THINK THAT WE SHOULD HAVE IT IN OUR COMMUNICATION AS WE'RE TALKING TO OTHERS.

AND THEN THE FACT THAT YOU LOST 300 EMPLOYEES, YOU WERE VERY SPECIFIC ABOUT THE LOSS OF 300 EMPLOYEES.

I THINK THAT'S ONE OF THESE, UM, TANGIBLE ITEMS THAT WE CAN LET OUR FOLKS KNOW ABOUT.

RIGHT? SO INSTEAD OF BEING, UH, SO VAGUE IN, IN THE, THE, IN THE DOCUMENT FOR THEM ADDED, I, AND I THINK THAT WOULD BE HELPFUL, RUDY.

WELL, LET, LET, LET ME JUST BE REAL EVEN MORE SPECIFIC ABOUT THE, THE PEOPLE ISSUES.

WE GOT 50 PEOPLE RETIRING, UH, AT THE END OF JANUARY, AND BY IN, IN THE COURSE OF A YEAR, WE MAY LOSE A HUNDRED A YEAR TO RETIREMENT RIGHT NOW.

UH, SO, YOU KNOW, THIS RATE INCREASE ALLOWS US TO GO OUT AND HIRE TWO 50 TO GET, TRY TO GET BACK TO SOME OF THE 400, BUT YOU'RE ALSO LOSING FOLKS.

SO THE NET REALLY, YOU KNOW, YOU'RE, YOU'RE, IT'S REALLY HARD TO CATCH UP, UH, WHEN YOU GET THIS FAR BEHIND.

SO I JUST WANNA MAKE THE POINT THAT, THAT, YOU KNOW, IF EVERYTHING WORKED OUT AND NOBODY LEFT, IT'D BE MAYBE 250 MORE FOLKS BY THE END OF NEXT YEAR.

BUT IT'S REALLY GONNA BE 150 WHEN YOU FACTOR IN THE FOLKS THAT ARE, THAT ARE RETIRING ON US.

SO IT, IT IS A BIG, BIG CHALLENGE FOR US.

WELL SEE.

SO THAT WOULD BE HELPFUL, RIGHT, FOR US TO KNOW TOO, LIKE 50 PEOPLE ARE RETIRING, PEOPLE AREN'T GOING INTO TRADES, ET CETERA, RIGHT? LIKE, UM, SO THAT, THAT MIGHT BE SOMETHING NICE.

AND THEN ALSO, I WANNA SAY THAT I APPRECIATE YOU HAD, UM, ONE OF YOUR, UH, RESPONSES WAS THE CUSTOMERS THAT YOU MET WITH AT EVERY LEVEL OF THE COMMUNITY OR HAVE SCHEDULED MEETINGS

[02:00:01]

WITH.

UM, AND SO ONE OF THEM WAS THE SAN ANTONIO BUSINESS AND ECONOMIC SOCIETY.

I'D BE INTERESTED TO GET THEIR FEEDBACK.

UM, I DON'T KNOW IF THAT ALREADY HAPPENED OR IF IT'S UPCOMING.

UM, BUT I, I'D BE REALLY INTERESTED TO GET THEIR FEEDBACK.

UM, I KNOW YOU'VE MET WITH THE SAN ANTONIO MANUFACTURERS ASSOCIATION, THAT'S ONE OF THE, THE ONES YOU'VE MET WITH MILITARY CUSTOMER ACCOUNTS.

UM, YOU HAVE NEIGHBORHOOD ASSOCIATION MEETINGS.

I DON'T KNOW HOW MANY YOU'VE HAD, BUT IT WOULD BE NICE TO HAVE THAT, UM, THE, UH, GREATER BEXAR COUNTY COUNCIL OF CITIES MEETING THAT YOU ATTENDED, THE PARTNERS IN POWER AGENCY CONSORTIUM, UM, THAT I KNOW THAT A LOT OF US HAVE BEEN, UH, ATTENDED.

AND THEN IN PARTICULAR, LULAC SMALL BUSINESS BUSINESS OUTREACH EVENT.

DID THAT ALREADY HAPPEN? OR IS IT IT HAPPENED SATURDAY.

IT HAPPENED SATURDAY MORNING, MA'AM.

YES.

AND SO I'D LOVE TO KNOW WHAT KIND OF FEEDBACK WAS GIVEN AS WELL ON THAT.

I DON'T KNOW IF Y'ALL ARE DOCUMENTED A DOCUMENTING COMMENTS, BUT I THINK THAT, UM, I, I APPRECIATE THAT YOU LISTED EVERYTHING THAT YOU'RE WORKING ON OR MIGHT BE WORKING ON.

IF WE CAN GET A LITTLE BIT MORE SPECIFICS ON SOME OF THAT.

AND I CAN ASK YOU OFFLINE.

AND, AND WE DO, UH, KEEP TRACK OF ALL THE FEEDBACK WE GET AT EACH ONE OF, WE HAVE KIND OF A SUMMARY OF EACH EVENT THAT I'VE, THAT MY TEAM DOES ON REGULAR BASIS.

I'D LOVE TO SEE SOME OF THOSE.

COUNCIL MEMBER RJA GARCIA, COUNCIL MEMBER MCKEE RODRIGUEZ.

AN OPEN LINE OF COMMUNICATION, BEING ABLE TO WORK WITH YOU, LEVERAGING ALL THE EXISTING COMMITTEES THAT WE HAVE THAT FRANKLY ARE OVERWHELMING SOMETIMES, BUT ARE NECESSARY SO THAT WE CAN GAIN YOUR TRUST.

UM, I WANTED TO CHIME IN BECAUSE I'M SUPER EXCITED THAT, AND I WON'T STAY ON SPO FOR TOO LONG, BUT I AM SUPER EXCITED THAT WE ARE HAVING A CONVERSATION AND THAT THE TIMELINE LOOKS LIKE, YOU KNOW WHAT SOME PEOPLE AT, YOU KNOW, WHAT SOME PEOPLE IN PLACES OF POWER ARE SAYING IS THAT WE NEED TO CLOSE IT DOWN A LOT FASTER.

AND I THINK THERE ARE COMMUNITY MEMBERS WHO ARE GONNA BE SUPER EXCITED TO HEAR THAT I AM.

UM, AND THAT WAS ONE OF THE CONVERSATIONS THAT I SAID WAS ABSOLUTELY NECESSARY BEFORE I COULD COMMIT TO, UM, CONSIDERING A YES VOTE.

UM, I DO FEEL COMPELLED TO EXPLAIN A LITTLE FURTHER THAT MY COMMUNITY'S THOUGHTS.

AND ONE, I THINK THAT, UM, AND MY TEAM AND I TALK ABOUT THIS A BIT, IS THAT US RELYING ON, WE, YOU KNOW, THE WEATHER BEING HOTTER OR COOLER SO THAT WE CAN GET, UH, MORE INCOME IS A, IS VERY PROBLEMATIC AND FO ESPECIALLY SUCH WHEN WE'RE IN A CITY WHERE FOLKS HAVE, UH, DECADES OLD HOMES WITH NO INSTALLATION WINDOW UNITS, AND THEY SPEND HUNDREDS OF DOLLARS, UM, OF THEIR LIMITED INCOME.

AND I'M BEING MADE TO FEEL RIGHT NOW.

OR, YOU KNOW, THE GENERAL CONSENSUS IS THAT WE HAVE TO VOTE YES OR ELSE THAT'S ESSENTIALLY WHAT THIS IS.

AND I'M, AND WHAT I'M CONVEYING AND WHAT I WAS CONVEYING IN MY FIRST BIT IS THAT MY COMMUNITY DOES NOT WANT ME TO FALL IN LINE.

THEY'RE VERY ANGRY, VERY UPSET, AND THERE ARE A LOT OF CONCESSIONS THAT NEED TO BE MADE.

THERE'S CONVERSATIONS THAT NEED TO BE HAD, AND THEY'RE VERY DISTRUSTFUL.

AND SO THE LISTING SOME THINGS OFF AND SAYING, OH, WE'RE GONNA CONSIDER, WE'RE GONNA HAVE A RATE DESIGN CHANGE LATER ON, WE'RE GONNA DO THIS LATER ON.

THAT IS NOT ENOUGH.

AND SO WHEN WE HAVE THE TOWN HALL, I WANT YOU TO PLEASE COME BEARING THAT IN MIND.

I WANT AS MANY PEOPLE FROM C P S THERE AS POSSIBLE SO THAT Y'ALL KNOW WHEN Y'ALL COME, I WANT YOU GUYS TO BE IN THE BEST POSITION POSSIBLE TO ANSWER ANY QUESTIONS THAT ARE THERE, TO RESPOND TO ANY STATEMENTS.

AND I WANT YOU TO KNOW THAT WHEN I VOTE THREE DAYS LATER, IT'S GONNA BE BASED OFF OF ALL OF THAT.

I THINK MY VICE CHAIR WOULD LIKE TO SPEAK.

SO I'M GONNA STAND ASIDE.

LOOK, I WILL TELL YOU, AS SOMEONE WHO LIVES IN DISTRICT FIVE, SOMEONE WHO HAD WEB HIDDEN DISTRICT TWO FOR 16 YEARS, THIS ISN'T EASY, YOU KNOW? BUT I WILL TELL YOU THOUGH, THAT WE'VE GONE THROUGH A LOT IN THE LAST COUPLE OF MONTHS.

BUT WITH, WITH WHAT WE'VE, WHAT WE'VE EXPERIENCED, I FIRMLY BELIEVE THAT WORKING THROUGH RAC, WORKING THROUGH THE M U C, WORKING, THE WAY WE'VE BEEN WORKING, THIS IS REALLY AN OPPORTUNITY FOR ALL OF US TO BE AT THE TABLE AND REDESIGN SOMETHING THAT'S GONNA BE EFFECTIVE FOR THE NEW FUTURE OF C P SS.

SO I CAN UNDERSTAND THE RESERVATIONS.

I LIKE YOU, WHERE'S THE BUSINESS PLAN? LET'S IMPROVE THE COMMUNICATION.

SO THE SAME QUESTIONS THAT I'VE HEARD OVER AND OVER IN THE SAME PUBLIC INPUT, I'VE BEEN ALSO FRUSTRATED AS A TRUSTEE.

SO, YOU KNOW, BUT FOR THE RECORD, WHAT I AM PLEASED IS THAT IT'S A NEW CHAPTER AT C P S.

WE HAVE A NEW LEADER.

WE HAVE LESS BUREAUCRACY.

I HAVE MORE ACCESS TO THE MAYOR, TO ALL OF YOU, TO MY C E O, AND I FEEL MORE CONFIDENT THAT WE CAN WORK COLLECTIVELY IN A BETTER, BRIGHTER FUTURE FOR C P SS.

I CAN'T PROMISE YOU, LOOK, I'M A TECHNOLOGIST.

EVEN MY CONTRACT SAYS 99.9 THAT THEIR HOSTING WILL BE UP.

NO ONE CAN GUARANTEE ANYTHING.

BUT WHAT I CAN PROMISE YOU IS A COMMITMENT TO ALL OF YOU, AND ESPECIALLY THE, THE, THE POVERTY AREAS.

I LIVE THERE.

MY DAUGHTER GOES TO PUBLIC SCHOOL AND DISTRICT, YOU KNOW, TOO, I CAN COMMIT TO YOU, AGAIN,

[02:05:01]

SO THE ONLY THING THAT I, AGAIN, CAN JUST TELL YOU, I, WE'RE HERE TO WORK WITH YOU.

I CAN SHOW UP TO AS MANY AS MEETING AS I CAN, ONE-ON-ONE PUBLIC, YOU KNOW, PUBLIC COMMUNITY AFFAIRS.

I'M A BIG ADVOCATE OF MAKING MYSELF AVAILABLE TO THE COMMUNITY AS WELL.

SO COUNT ON ME, COUNT ON DR.

CH, UH, MACKEY AND A COUPLE OF OTHER BOARD MEMBERS TO BE WHERE WE NEED TO BE.

SO IT'S NOT THE SAME C P S I CAN GUARANTEE YOU THAT BECAUSE I WOULD STAY, I WOULD GET OFF THE BOARD IF IT WAS, I DON'T NEED THE TITLE OF BEING A C P S TRUSTEE IF I DON'T SEE CHANGE.

SO AGAIN, THANK YOU FOR YOUR TIME TODAY.

AND AGAIN, YOU CAN REACH OUT DIRECTLY OR GO THROUGH, UH, RUDY, AND WE WILL BE THERE.

SO THANK YOU VERY MUCH.

ABSOLUTELY.

I REALLY APPRECIATE THAT.

AND I UNDERSTAND THAT THE TONE OF CONVERSATION IS, IT'S VERY HARD FOR IT TO BE, UM, LIGHTHEARTED AND KIND.

LIKE THIS IS VERY SERIOUS AND IT'S VERY DEEP TO A LOT OF PEOPLE.

UM, SO WHILE I WILL BE HARD, WHILE I WILL A, YOU KNOW, I'M GONNA CONTINUE TO BE JALEN, I'M GONNA CONTINUE TO REPRESENT MY COMMUNITY, I DO APPRECIATE, UM, THE TEXT.

I DO APPRECIATE THE FLYERS AND I APPRECIATE THE DOOR KNOCKING AND THE WORK THAT YOU ARE DOING.

I THINK THAT'S SUPER CRITICAL AND IMPORTANT.

I VERY MUCH VALUE THAT WITH ME.

YOU GET A BLOCK WALKER AS WELL.

JUST THE OTHER SATURDAY WE WERE BLOCK WALKING FOR, UH, SIDEWALK SIDEWALKS WE KNOCKED ON BEFORE WE WOULD APPROVE 'EM, WE KNOCKED ON THOSE 50 DOORS.

AND WE WERE TALKING ABOUT ARPA BOND, WE WERE TALKING ABOUT C P S.

AND SO JUST KNOW YOU HAVE THAT OUTREACH WITH ME.

WE JUST, IT'S GONNA BE A LOT MORE, LOT MORE.

I HAVE, DON'T WORRY ABOUT IT.

BLOCK WALK.

COUNCIL MEMBER MICKEY RODRIGUEZ, COUNCIL MEMBER GRO.

UH, THANK YOU.

JUST, UH, A COUPLE OF POINTS, UM, IF WE COULD GET A TIMELINE.

'CAUSE I KNOW I THINK MYSELF AND COUNCILMAN BRAVO, UH, AS WELL AS COUNCILMAN SANDOVAL BEFORE I EVEN GOT HERE, WAS LOOKING TO INCREASE THAT C P S BOARD.

SO I, I WOULD REALLY LIKE TO SEE ANDY IF WE CAN GET A TIMELINE AND NEXT STEPS.

AND IF WE HAVE TO HANDLE IT IN ONE OF OUR COMMITTEES, I'M SURE COUNCILMAN SANDA VAL WILL, UH, VOLUNTEER THE CHECK COMMITTEE.

SO, UH, IF WE CAN GET A TIMELINE, ANDY, WE'LL DO THAT FOR SURE IN JANUARY.

UH, THE OTHER THING, UM, THAT, UH, RUDY, THAT I WANNA ADDRESS IS THE, UM, IS THE EMPLOYMENT.

AND WE ALL SAW THIS HAPPEN DURING THE PANDEMIC.

IT WASN'T SOLELY C P S, BUT I THINK IN TERMS OF LOOKING AT CORPORATE CULTURE AND RETAINING THE EMPLOYEES, THAT I HOPE C P S HAS A PLAN.

I DON'T WANNA, I DON'T NEED DETAIL, BUT I HOPE YOU HAVE A PLAN IN TERMS OF, UH, KIND OF CHANGING THAT CORPORATE CULTURE.

SO PEOPLE DECIDE TO STAY AND, AND, AND FEEL LIKE THIS IS WHERE THEY WANNA BE COUNCILWOMAN.

THE, UH, THE, MY BOARD PUSHED ME ON THAT PRETTY HARD ON, UH, MONDAY AT OUR BOARD MEETING.

SO THAT IS ONE OF MY THREE KEY FOCUS AREAS RIGHT NOW IS GETTING OUT, TALKING TO EMPLOYEES, TRYING TO GET 'EM CONFIDENT THAT THE C P S ENERGY THAT THEY, THAT THEY CAME TO WORK FOR, IS IT STILL A C P S ENERGY THEY WANT TO BE, BE AT? AND, UH, THANK YOU.

AND THE OTHER THING IS WITH THE TECHNOLOGY ASPECT, AND I'M SURE OUR RATE ADVISORY BOARD IS GONNA DO A GOOD JOB, IS AS THE CITY CONTINUES TO GROW, AND WE SEE THE POPULATION GROWTH HAPPEN, ESPECIALLY AREAS, UH, LIKE DISTRICT THREE AND DISTRICT FOUR, THAT, UM, WE'RE RURAL AND HOW DO WE GET THE INFRASTRUCTURE THERE? UH, SO THAT WE'RE JUST MINDFUL, UH, AS WE TALK ABOUT SHUTTING DOWN CERTAIN PLANTS, OPENING UP OTHERS, THAT WE UNDERSTAND THE GROWTH THAT'S COMING IN, IN, IN AND AROUND THAT AREA THAT IS NOT JUST OLD INFRASTRUCTURE.

'CAUSE WE'VE GOT OLD INFRASTRUCTURE TOO, BUT LIKE NO INFRASTRUCTURE.

UM, AND THAT GOES FOR MY OTHER UTIL THE OTHER UTILITY, WHICH IS SAW.

SO JUST MAKE SURE THAT WE ARE MINDFUL OF THAT AS WE MOVE FORWARD.

I, YOU KNOW, WE'VE GOT, YOU KNOW, $12 BILLION IN ASSETS.

THERE'S SOME, IN SOME AREAS THEY'RE AS OLD AS THE HOUSES THAT THEY'RE, THAT THEY'RE SERVING.

SO WE ABSOLUTELY HAVE WORK TO DO TO GET THAT INFRASTRUCTURE UP.

BUT I, I DO BELIEVE OUR, OUR TEAM HAS A GOOD PLAN FOR FOCUSING, PRIORITIZING THE SPEND WE DO HAVE AVAILABLE.

UH, AND WE CERTAINLY, UH, SHOULD BE DOING THAT IN FULL KIND OF TRANSPARENCY WITH YOUR OFFICE SO YOU KNOW WHERE WE'RE GONNA BE, YOU KNOW, AND, AND QUITE FRANKLY, YOU GET, YOU HEAR IT MAYBE EVEN MORE SO THAN WE DO, YOU KNOW, WHEN, WHEN THINGS GO WRONG AND FOLKS ARE FRUSTRATED ABOUT THEIR INFRASTRUCTURE.

SO I WILL JUST, AGAIN, I'VE, I'VE SAID IT OVER AND OVER AGAIN.

WE'RE PARTNERS IN SERVING THIS COMMUNITY, AND AS YOU'RE GETTING FEEDBACK, THE ONLY THING I, THE ONLY FEEDBACK I CAN DO SOMETHING WITH IS FEEDBACK YOU SHARE WITH ME.

AND SO I JUST INVITE YOU TO SHARE THE THINGS THAT YOU'RE HEARING SO WE CAN BE FOCUSED IN THE RIGHT AREAS.

AND I, AND I APPRECIATE YOUR TEAM AND ALL THEY'VE DONE TO REACH OUT TO ME.

[02:10:01]

COUNCIL MEMBER GRO, COUNCIL MEMBER COURAGE.

IT, IT'S BEEN KIND OF SURPRISING TO ME TO HEAR SO MUCH TALK ABOUT, WELL, WHAT ARE WE GONNA DO WITH THE MONEY AND WHY DO WE NEED THE MONEY AND WHAT'S, YOU KNOW, WHAT HAVE WE DONE IN THE PAST AND WHY AREN'T WE DOING MORE? AND IT, IT, IT JUST SURPRISES ME THAT PEOPLE DON'T RECOGNIZE WHAT THE PANDEMIC DID TO THE REVENUE.

NOT JUST OF THIS CITY AND THIS COMMUNITY, BUT CERTAINLY OF OUR UTILITIES AND PARTICULARLY C P S ENERGY.

HOW MANY MILLIONS OF DOLLARS WAS NOT PAID THIS YEAR IN, UH, A NORMAL YEAR'S AVERAGE REVENUE? HOW MUCH WAS NOT PAID? YEAH, 120 MILLION.

$120 MILLION LESS REVENUE THAN ANTICIPATED.

AND THEN WE HAD A STORM, AND ALL OF US KNOW HOW BAD THAT STORM WAS.

WHAT IS THE EXPECTED COST TO C P S ENERGY TO CORRECT EVERYTHING THAT'S BEEN PUT IN PLACE TO IMPROVE OURSELVES? WHAT'S THE COST FOR ALL OF THAT GOING TO BE, LET'S SAY JUST IN THE NEXT YEAR OR TWO? UH, YEAH, A HUNDRED MILLION.

ANOTHER A HUNDRED MILLION DOLLARS.

SO THERE'S 200 AND $20 MILLION.

AND WOULD PEOPLE NOT THINK THAT THERE MIGHT BE A NEED FOR A RATE INCREASE TO MAKE UP FOR THAT REVENUE? NOW, SOME OF THAT'S COMING BACK, UH, AND HOPEFULLY A LOT OF THAT COMES BACK.

UH, BUT OVER THE LAST THREE YEARS, LET'S SAY 20 20, 20 21, AND LOOKING FORWARD TO 2022, ARE WE HAVING MORE PEOPLE MOVE INTO THIS DISTRICT AND MAKE GREATER DEMANDS ON OUR ENERGY EVERY DAY? AND SO, YOU KNOW, IT'S NOT ONLY A FACT OF LOST REVENUE, LOST INCOME, AND LOST SERVICE, IT'S THE NEED FOR EVEN MORE SERVICE TO COMPLETE.

UH, YOU KNOW, PROVIDING WHAT PEOPLE NEED IN THIS COMMUNITY, 4%, $5 A MONTH, EVEN FOR MANY OF THE PEOPLE WHO ARE PROBABLY IN THE MOST DIFFICULT SITUATION, UH, IS I THINK SOMETHING REASONABLE THAT THE COMMUNITY SHOULD EXPECT, UH, TO CONTINUE TO SEE OUR UTILITY COMPANY PROVIDE THE ENERGY THAT WE NEED.

AND WE DO HAVE PROGRAMS TO HELP THOSE PEOPLE WHO, UH, MAY HAVE TO PAY $5.

MAYBE THEY'LL ONLY PAY TWO OR THREE BECAUSE OF OTHER PROGRAMS THAT C P S OFFERS TO HELP THEM WITH THEIR BILL.

AND CERTAINLY THERE ARE SOME PEOPLE GONNA BE PAYING $15 OR $20 MORE BECAUSE THEY USE SO MUCH DARN ENERGY, BUT THAT'S THEIR CHOICE.

AND THEY, THEY MAKE THAT CHOICE TO PAY FOR IT.

BUT $220 MILLION IN COSTS AND LOSS REVENUE AND RISING COSTS BECAUSE YOU'VE GOT EMPLOYEES LEAVING, YOU'VE GOTTA HAVE MORE COSTS AND YOU'VE GOTTA EXPAND THE SERVICE.

LADIES AND GENTLEMEN, THIS SHOULD BE AN EASY DECISION FOR ALL OF US.

WE NEED TO KEEP THIS UTILITY GOING AND WE NEED TO COUNT ON THEM TO PROVIDE THE LIGHTS AND THE GAS THAT WE NEED.

THANK YOU, COUNCIL MEMBER COURAGE.

UM, AND I'LL AGAIN THANK, UH, THE TEAMS FOR YOUR PRESENTATIONS.

WE HAVE ADDITIONAL WORK AND OBVIOUSLY PUBLIC CONVERSATION WILL BE HAPPENING.

IN THE MEANTIME, UH, YOU HEARD THE COMMITMENT FROM MYSELF AND FROM THE COUNCIL TO HELP, UH, WITH THAT PROCESS.

RUDY AND TEAM.

SO WE ARE AT YOUR, UH, AT YOUR SERVICE AS WELL.

AS WE GET THROUGH THE NEXT, UM, SEVERAL WEEKS.

UH, I WILL JUST SHARE WITH THE COUNCIL, UM, THE BOARD MEETING THAT WE JUST HAD, UM, THIS WEEK.

UM, YOU DID SOMETHING, I THINK YOU WERE COPYING ERIC, 'CAUSE HE DOES AN EMPLOYEE SPOTLIGHT EVERY MONTH OR EVERY WEEK.

AND YOU DID ONE THIS WEEK, UH, RUDY ON, AND I GUESS, UH, I THINK THE NA THE NAME OF THE YOUNG MAN WAS PAOLO.

PAOLO.

HE WORKS AT BRO, UH, STATION.

ONE OF THE TECHNICIANS WHO'S IN THERE, ENGINEER IN THE TURBINES ENGINEER, SIR.

UH, HE'S A GRADUATE OF U T S A.

UH, THAT WE ALL HAVE A RESPONSIBILITY TO MAINTAIN, UH, AND, AND MAINTAIN.

HOW OLD IS HE? UH, HE'S PROBABLY 25.

25 20.

SO IN, IN MANY WAYS, UH, UH, SOMEONE EDUCATED IN OUR COMMUNITY, UM, A YOUNG MAN HOPEFULLY HAS A BRIGHT FUTURE WITHIN C P S, UH, AND WELL SPOKEN ABOUT THE JOB THAT HE HAS TO DO.

BUT I SAT THERE THINKING, YOU KNOW, THIS IS, THIS IS C P S, THIS IS THE STATE OF OUR ELECTRICITY SYSTEM.

AND IF NOT FOR OUR ABILITY TO FIND AND RECRUIT, UH, AND EMPLOY PEOPLE WHO ARE IN THERE WORKING IN THE TURBINES WHEN IT'S 20 DEGREES OUTSIDE, WHEN THERE'S ERCOT FORCED SHUTOFFS AND THINGS LIKE THAT, PEOPLE ACTUALLY WITH THEIR HANDS ON THIS EQUIPMENT PUTTING UP POWER LINES.

UM, YOU KNOW, OUR DREAMS TO BUILD A GREAT CITY, UH, CREATE JOBS, UM, CREATE, YOU KNOW, ALLOW FOR, UM, THE BRIDGING OF OUR DIGITAL DIVIDE, UH, THE BUILDING OF THE GREAT CYBERSECURITY INFRASTRUCTURE.

ALL OF THAT GRINDS TO A HALT WITHOUT A WELL-FUNCTIONING ELECTRIC ELECTRICAL SYSTEM.

AND IT ALL FALLS TO THE HANDS OF PEOPLE LIKE PAOLO.

UH, SO WITH THAT IN MIND, I THINK WE GO FORWARD THROUGH THE NEXT MONTH THINKING ABOUT WHAT OUR TASK IS IN TERMS OF HELPING PEOPLE ALL ACROSS THIS COMMUNITY UNDERSTAND THE ASSET THAT THEY OWN,

[02:15:01]

WELL.

SO, UH, THIS HAS BEEN A GREAT DISCUSSION.

I THINK THERE'S A LOT MORE THAT WE HAVE TO DO, BUT, UH, I WOULD ECON CONTINUE TO ENCOURAGE YOU TO SHARE THOSE STORIES OF YOUR EMPLOYEES WHO DO THIS WORK.

'CAUSE THEY'RE GREAT.

UM, UH, THEY'RE GREAT NEIGHBORS, THEY'RE GREAT COMMUNITY SERVANTS, UH, IN THEIR OWN RIGHT.

AND WE APPRECIATE THEIR STORIES AS WELL.

WITH THAT, THE TIME IS 4:15 PM UH, ON THIS WEDNESDAY, DECEMBER 15TH, 2021, THE CITY COUNCIL OF THE CITY OF SAN ANTONIO WILL NOW MEET IN EXECUTIVE SESSION TO CONSULT WITH THE CITY ATTORNEY'S OFFICE AND DELIBERATE OR DISCUSS THE FOLLOWING ITEMS PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 51 0.087, ECONOMIC DEVELOPMENT NEGOTIATIONS, UM, THE PURCHASE EXCHANGE LEASE OR VALUE OF REAL PROPERTY PURSUANT TO SECTION 5 51 0.072, AND CONSULTATION WITH THE CITY ATTORNEY FOR LEGAL ISSUES OR ADVICE RELATED TO COLLECTIVE BARGAINING LITIGATION INVOLVING THE CITY AND C OVID 19 PREPAREDNESS UNDER SECTION 5 5 1 0.071.

ALRIGHT, WELL THANK YOU ALL VERY MUCH.

UM,

[EXECUTIVE SESSION At any time during the meeting, the City Council may recess into executive session in the Presidio Conference Room or the B Room to consult with the City Attorney's Office (Texas Government Code Section 551.071) and deliberate or discuss any of the following: ]

ALRIGHT, GOOD EVENING EVERYONE.

WELCOME TO OUR CITY COUNCIL PUBLIC HEARING.

UM, TIME IS NOW 5:02 PM ON THIS 15TH DAY OF DECEMBER, 2021.

UH, WE'RE GONNA GO AHEAD AND START WITH A ROLL CALL.

COUNCIL MEMBER BRAVO.

COUNCIL MEMBER MCKEE RODRIGUEZ.

PRESENT, COUNCIL MEMBER VRAN.

COUNCIL MEMBER ROCHA GARCIA.

COUNCIL MEMBER COURAGE PRESENT.

COUNCIL MEMBER CAB HDA.

COUNCIL MEMBER SANDOVAL.

COUNCIL MEMBER PALIS.

COUNCIL MEMBER PERRY.

MAYOR NIERENBERG.

MAYOR, WE HAVE A QUORUM.

ALRIGHT, UH, CONFIRM A QUORUM PRESENT.

UM, AND SO I'LL NOTE, UH, THE PUBLIC HEARING RELATED TO THE USE OF HOME AMERICAN RESCUE PLAN PROGRAM FUNDS IS NOW OPEN.

COMMENTS SHOULD BE LIMITED TO MATTERS REGARDING THIS ITEM.

EACH PERSON WILL HAVE THREE MINUTES AND EACH GROUP WILL HAVE NINE UP TO NINE MINUTES.

FIRST PERSON TO SIGN UP, UH, EXCUSE ME.

THE FIRST PERSON SIGNED UP TO SPEAK ON THE PUBLIC HEARING IS NIKISHA BAKER.

GOOD AFTERNOON.

UH, MY NAME IS NIKISHA BAKER AND I SERVE AS THE PRESIDENT AND C E O OF SAM MINISTRIES.

THANK YOU FOR THIS OPPORTUNITY TO SHARE THIS AFTERNOON.

UH, SAM MINISTRIES IS THE ONLY LOCAL HOMELESS SERVICE PROVIDER WHO OPERATES ACROSS HUD'S CONTINUUM OF CARE.

OUR PERSPECTIVE IS BOTH UNIQUE AND IMPORTANT, AND TODAY I AM ASKING COUNSEL TO CONSIDER ALLOCATING HOME ARC FUNDS IN SUPPORTIVE PERMANENT SUPPORTIVE HOUSING, TRANSITIONAL TO RAPID REHOUSING FOR YOUTH AGING OUT OF FOSTER CARE AND VICTIMS OF DOMESTIC VIOLENCE AND RELOCATION AND STABILIZATION.

FOR THOSE WHO DO NOT MEET THE CRITERIA OF LITERAL HOMELESSNESS, UM, BUT ARE AT OR BELOW 50% OF AREA MEDIAN INCOME, EXCUSE ME, OUR SAFETY NETS ARE MISSING MANY OF THESE HOUSEHOLDS AND THEY NEED OUR HELP.

EARLIER TODAY I MET A GENTLEMAN NAMED JOE GONZALEZ, WHO ESCAPED HOMELESSNESS DURING THE HOUSING SURGE FACILITATED BY THE SOUTH ALAMO REGIONAL ALLIANCE FOR THE HOMELESS, UM, IN CONJUNCTION WITH HOMELESS SERVICE PROVIDERS IN THE COMMUNITY.

JOE IS CURRENTLY IN OUTPATIENT REHAB FOR SUBSTANCE USE DISORDER AND IS WORKING TO BE REUNIFIED WITH HIS CHILDREN.

WHILE BEING INTERVIEWED BY KSAT TODAY, HE SHARED HIS TREMENDOUS GRATITUDE FOR THE SERVICES HE RECEIVED THAT PUT HIM ON THAT PATH.

JOE WAS LUCKY.

THE UNSHELTERED WHO ARE CHRONICALLY HOMELESS ARE NOT SO LUCKY.

THEY'RE EXPERIENCING HOMELESSNESS FOR MORE THAN A YEAR OR REPEATEDLY WHILE STRUGGLING WITH A DISABLING CONDITION.

PERMANENT SUPPORTIVE HOUSING IS THE PREFERRED SOLUTION FOR THESE INDIVIDUALS REDUCING THEIR ENGAGEMENT WITH THE CRIMINAL JUSTICE SYSTEM, THE HEALTHCARE SYSTEM, AND PROVIDING THEM WITH DIGNITY AND COMPASSION THAT THEY DESERVE.

SAM INDUSTRY'S PERMANENT SUPPORTIVE HOUSING PROGRAM HAS A 92% HOUSING STABILITY RATE FOR THIS VERY VULNERABLE POPULATION.

SECONDLY, YOUTH AGING OUT OF FOSTER CARE MAKE UP THE FASTEST GROWING POPULATION AMONGST OUR COMMUNITIES.

HOMELESS AND FLEEING DOMESTIC VIOLENCE IS SO SIGNIFICANT A REASON FOR OR CAUSE OF HOMELESSNESS, UM, THAT HUD HAS ELEVATED IT TO ITS CATEGORY ONE DEFINITION OF HOMELESSNESS.

SO THIS POPULATION NEEDS OUR SUPPORT AS WELL.

LASTLY, MANY OF OUR HOUSEHOLDS ARE COMING TO THE CITY OF SAN ANTONIO, TO ST.

PJ'S, TO SAN MINISTRIES, AND SO MANY OTHER PROVIDERS SEEKING HOMELESS PREVENTION ASSISTANCE, BUT THEIR RENTAL ARREARS AND BUDGETS ARE SO SUBSTANTIAL THAT THEY NEED A LONGER TERM AND MUCH MORE SIGNIFICANT INTERVENTION.

YEAR TO DATE, SAM RIES HAS SERVED 55 HOUSEHOLDS WITH LIMITED RESOURCES, BUT THE NEED IS FAR GREATER THAN

[02:20:01]

THAT.

SO AS COUNCIL CONSIDERS ALLOCATING THESE HOME FUNDS, I ENCOURAGE YOU TO THINK OF OUR COMMUNITY'S MOST VULNERABLE.