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OKAY.THANK YOU VERY MUCH EVERYBODY FOR BEING HERE TODAY.
WELCOME TO THE MUNICIPAL UTILITIES COMMITTEE MEETING OF OCTOBER 25TH.
I'M CITY COUNCILMAN JOHN, COURAGE CHAIR OF THE COMMITTEE.
UH, WE'LL GO AHEAD AND BEGIN AT THIS TIME WITH, UH, UH, ATTENDANCE.
[Approval of Minutes ]
AND GO TO APPROVAL OF OUR MINUTES EXCUSE FROM SEPTEMBER 27TH MEETING.I'LL UN ATTAIN A MOTION IF ANYBODY HAS ANY QUESTIONS OR CONCERNS ABOUT ANY CHANGES IN THE MINUTES.
I MOVE THAT WE APPROVE THE MINUTES FROM MY BIRTHDAY.
DO WE HAVE NOTE OF YOUR BIRTHDAY? IN THE MINUTES.
UH, IT'S BEEN MOVED AND SECONDED FOR APPROVAL OF THE MINUTES OF SEPTEMBER 27TH.
HEARING NONE OPPOSED, THE MINUTES ARE APPROVED.
TODAY WE HAVE SEVERAL ITEMS, UH, BUT THE FIRST ITEM WE'RE GONNA GO AHEAD AND, AND BRING UP IS
[Public Comment ]
PUBLIC COMMENT WE HAVE WITH US TODAY, ONE SPEAKER, PETER ANORO, WHO'S GOING TO BE, UH, SPEAKING.GOOD MORNING, CHAIR AND, AND COMMITTEE MEMBERS.
I SERVE ON THE C P S RATE ADVISORY COMMITTEE, UH, REPRESENTING DISTRICT FOUR.
AND I'D LIKE TO SHARE A RECOMMENDATION FOR THE DEVELOPMENT OF THE NEW C P S ENERGY EFFICIENCY AND CONSERVATION PROGRAM.
I'D LIKE TO THANK RUDY AND THE STAFF FOR BEING SO AVAILABLE TO THE RACK AND SPECIFICALLY RUDY FOR ALLOWING ME TO WORK DIRECTLY WITH JONATHAN TAINA TO HELP DEVELOP A PLAN TO SEEK FEDERAL INFRASTRUCTURE FUNDS FOR THE NEW E ENERGY EFFICIENCY CONSERVATION PROGRAM.
WORKING WITH JONATHAN AND THE STAFF ALLOWED ME TO GET A REGULAR UPDATES ON THE DEVELOPMENT OF THE NEW PROGRAM.
THE ORIGINAL STEP WAS EXTREMELY SUCCESSFUL AND PROVIDES AN EXCELLENT NARRATIVE FOR GRANT FUNDING.
MY CHALLENGE WITH THE PROGRAM WAS THAT IT DID NOT PRIORITIZE LOW INCOME ENERGY BURDEN CUSTOMERS NOT HAVING THE DETAILS ON WHAT THE NEW PROGRAM WOULD ENTAIL WAS A MAJOR CONCERN TO ME.
AND MANY OF MY FELLOW RAC MEMBERS, MANY OF WHOM ULTIMATELY VOTED TO STOP AND STUDY THE NEW PROGRAM AT THE TIME.
C P S STAFF ASSURED ME THAT THE NEW PROGRAMS WOULD HAVE THE FLEXIBILITY TO PRIORITIZE LOW INCOME CUSTOMERS.
WITH THESE ASSURANCES, I'VE VOTED TO SUPPORT THE NEW STEP PROGRAM WITH A STRATEGIC RECOMMENDATION THAT C P S ESTABLISH A COLLABORATIVE TARGETED ENERGY EFFICIENCY WEATHERIZATION PILOT PROGRAM.
THE PROPOSED C P S PILOT WOULD PARTNER WITH THE CITY'S OFFICE OF SUSTAINABILITY NEIGHBORHOOD AND HOUSING SERVICES, AND NOW THE NEWLY ADOPTED DEDICATED RESILIENCY, ENERGY EFFICIENCY AND SUSTAINABILITY FUND, AS WELL AS ACOG.
THE PARTNERSHIP WOULD LEVERAGE INFRASTRUCTURE FUNDS THAT WOULD PROVIDE PRIORITIZE ACCESSIBILITY TO LOW INCOME CUSTOMERS.
AFTER THE ADOPTION OF THE NEW STEP PROGRAM, I REQUESTED A RAC SUBCOMMITTEE BE CREATED TO EVALUATE ITS DEVELOPMENT AND POTENTIAL COLLABORATIVE PILOT.
ALTHOUGH CHAIR WILLIAMS DECLINED MY REQUEST, HE DID RECOMMEND THAT THE M U C CONSIDER EVALUATING THE NEW PROGRAM.
BASED ON JOE WILLIAMS' RECOMMENDATION AND THE FEEDBACK I RECEIVED FROM NUMEROUS STAKEHOLDERS, I PROPOSED IT TO M U C CONVENE A WORKING GROUP TO EVALUATE THE CURRENT DEVELOPMENT OF THE NEW STEP PROGRAM, IDENTIFYING FUNDING OPPORTUNITIES, AND ESTABLISH A COLLABORATIVE PILOT PROGRAM.
THE PROPOSED PILOT SCOPE OF WORK WOULD INCLUDE PRIORITIZING INCREASING LOW INCOME CUSTOMERS, ACCESSIBILITY TO ENERGY EFFICIENCY PROGRAMS, MAXIMIZING CAPACITY SAVINGS THROUGH COLLABORATIVE CAP PROCESS.
THE WORKING GROUP WOULD INCLUDE COMMUNITY STAKEHOLDERS, POTENTIAL PILOT PARTNERS, C P S, CAC AND RAC MEMBERS.
BECAUSE THE CAC IS NOT A PUBLIC COMMITTEE, I WOULD NOT RECOMMEND THAT IT HOST A HOUSING GROUP.
I BELIEVE COUNCILWOMAN SOWALD THAT THE DEDICATED RESILIENCY, EMERGENCY ENERGY, EFFICIENCY AND SUSTAINABILITY FUND IN PARTNERSHIP WITH CCP, A PROPOSED C P S PILOT COLLABORATIVE WOULD CREATE A TARGETED IMPLEMENTATION PROCESS THAT TRULY PRIORITIZES OUR MOST VULNERABLE MEMBERS OF OUR COMMUNITY AS WE MEET OUR CAP GOALS.
THANK YOU CHAIR AND COMMITTEE MEMBERS FOR YOUR CONSISTENT SUPPORT OF OUR WORK AND CONSIDERATION OF THIS RECOMMENDATION.
AND OF COURSE, THANK YOU COUNCILWOMAN.
WE GARCIA FOR THE OPPORTUNITY TO SERVE D FOUR AND ALSO REED WILLIAMS FOR YOUR LEADERSHIP OF THE IRAQ.
AND I WILL SAY THAT YOUR RECOMMENDATION, I'LL, I'LL, UH, HAVE THE COMMITTEE CONSIDER AT OUR NEXT MEETING SO THAT WE CAN SEE ABOUT TAKING ANY ACTION ON THAT.
ALSO, UH, WERE THERE ANY WRITTEN, SUBMITTED, UH, RECORDS THAT WE CAN READ INTO OUR RECORD? OKAY.
UH, ANYTHING IN WRITING SHOULD BE GIVEN TO ALL THE COUNCIL MEMBERS AND OF COURSE TO C P S.
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IS, UH,[Briefing and Possible Action on the following items ]
ITEM TWO IS A BRIEFING FROM, UH, ON THE C P S ENERGY RATE ADVISORY COMMITTEE WORK RELATED TO GENERATION PLANNING.AND, UH, WE'LL HAVE THE STATUS BRIEFING FROM C P S ENERGY STAFF, UH, AN UPDATE FROM, UH, BOARD MEMBER ROMERO.
AND I ALSO WANNA RECOGNIZE THE CHAIR IS HERE TODAY.
THANK YOU FOR BEING HERE, SIR.
AND, UH, WE'LL ALSO HEAR HOPEFULLY FROM, UH, REED WILLIAMS, WHO IS THE, UH, CHAIR OF THE ADVISORY COMMITTEE.
SO HE'LL GIVE US AN UPDATE AS WELL.
SO LET'S GO AHEAD AND BEGIN WITH A STAFF BRIEF STATUS BRIEFING SOME FROM C P S ENERGY.
THANK YOU SO MUCH, COUNCILMAN.
I AM FRANCINE ROMERO AND AS PART OF MY SERVICE ON THE C P S ENERGY BOARD OF TRUSTEES, I SERVE AS THE RATE ADVISORY COMMITTEE LIAISON FOR THE BOARD.
AND I AM HERE TODAY WITH REED WILLIAMS, OUR RAC CHAIR, SEVERAL MEMBERS OF THE C P S ENERGY TEAM, TO PROVIDE AN UPDATE ON THE RACS EFFORTS REGARDING GENERATION PLANNING.
AND I WOULD LIKE TO ALSO SEND GREETINGS TO MY ADMINISTRATIVE LAW AND POLICY STUDENTS WHO ARE WATCHING AT U T S A 'CAUSE THIS IS CLASS TODAY,
UM, SO LEMME START BY RECOGNIZING A FEW PEOPLE WHO'VE BEEN WORKING VERY HARD TO GUIDE RAC THROUGH THIS PROCESS.
CHAIR REED WILLIAMS, UH, FOR THE WONDERFUL JOB HE HAS DONE TO PREPARE FOR AND MANAGE THE REALLY COMPLEX CONVERSATIONS THAT THE RAC UNDERTAKES AT EACH MEETING.
AND HE MAKES IT EASIER FOR ALL MEMBERS TO ENGAGE FULLY IN THIS CONVERSATION, REID WILL PROVIDE CLOSING COMMENTS FOR TODAY'S UPDATE.
SO YOU'LL BE HEARING FROM HIM SOON.
ALI KTU, THE VICE CHAIR OF THE RAC, UH, FOR PROVIDING HER SIGNIFICANT INPUT IN BOTH OUR AGENDA PLANNING DISCUSSIONS AND IN THE MEETINGS THEMSELVES.
COUNCILWOMAN SANDOVAL, OUR CITY COUNCIL LIAISON TO THE RAC FOR ATTENDING THE RAC MEETINGS AND PROVIDING REGULAR UPDATES.
AND I ALSO WANNA THANK THE 21 RAC MEMBERS.
THERE'S A COUPLE HERE TODAY, PETER AND DIDI, UH, SORRY IF I MISSED ANYBODY ELSE WHO CAME IN.
UM, THEY'VE PARTICIPATED IN MONTHLY MEETINGS AND NOW MORE THAN MONTHLY MEETINGS OVER THE LAST YEAR, PROVIDING UNIQUE PERSPECTIVES ON OUR DISCUSSIONS.
THE MEMBERS HAVE BEEN, HAVE BEEN ASKED TO DO SOME REALLY HEAVY LIFTING FOR THIS TASK, AND THEY'RE WADING THROUGH AND ACTUALLY GUIDING SOME VERY TECHNICAL CONCEPTS AND A LIST OF CURRENT MEMBERS THAT IS INCLUDED IN THE APPENDIX OF THIS PRESENTATION.
AND I ALSO WANNA THANK C P S ENERGY STAFF WHO ARE FACILITATING THE WORK OF THE RACK.
I ATTEND ALL THE MEETINGS, SO I HAVE A FRONT ROW SEAT TO THEIR EFFORT.
AND I'VE LEARNED A LOT AT THESE MEETINGS, AND I KNOW THE RACK HAS AS WELL.
AS Y'ALL KNOW, THE RACK WAS FORMED IN MAY 21 WITH A SPECIFIC CHARGE TO LEARN ABOUT THE UTILITY BUSINESS AND THE RATE DESIGN FUNCTION, AND TO PROVIDE INPUT AND PERSPECTIVES TO THE BOARD ON RATE STRUCTURE, RATE DESIGN, PROPOSED RATE INCREASES, AND GENERATION PLANNING.
AT THE BEGINNING OF THIS YEAR, THE RACK BEGAN THE CHALLENGING DEEP DIVE INTO THE INTRICATE INTRICACIES OF C P SS ENERGY'S CURRENT POWER GENERATION PORTFOLIO.
THE NEAR TERM PRESSING NEEDS TO RETIRE CERTAIN POWER PLANTS AND VIABLE OPTIONS FOR REPLACING THAT POWER.
THEY ALSO STUDIED THE EVOLVING ENERGY LANDSCAPE ASPECTS OF VARYING ENERGY SOURCES, STATE AND FEDERAL POLICIES, AND ALL WHILE KEEPING IN MIND THE NEEDS OF THE COMMUNITY.
AND NOTABLE TAKEAWAY FROM THESE DISCUSSIONS IS THAT COMPLEX DECISIONS HAVE TO BE MADE OFTEN IN THE FACE OF AMBIGUITY AND UNCERTAINTY TO HELP BREAK DOWN THE WIDE ARRAY OF VIEWPOINTS AND VARIABLES INTO MANAGEABLE PIECES.
THE RAC CONDUCTED DOT PLOT EXERCISES THAT HELPED TO FORMULATE THE COMMITTEE'S PLANNING OBJECTIVES AND EVALUATION CRITERIA.
IN MY OPINION, THIS IS A REALLY CRUCIAL STEP TO STARTING THIS DISCUSSION.
HAVING THE RAC MEMBERS ENGAGE IN AN EXERCISE THAT RANK THE OBJECTIVES MOST IMPORTANT TO THEM, MEANS THAT THIS ENTIRE PROCESS IS APPROPRIATELY GROUNDED IN THE COMMUNITY VALUES THAT OUR RAC MEMBERS REPRESENT.
THE RAC IS NOW IN THE PROCESS OF RECEIVING MODELING RESULTS ON NINE DIFFERENT POSSIBLE ENERGY PORTFOLIOS.
I CAN TELL YOU THAT LAST WEEK'S RAC MEETING IN WHICH, UH, OUR CONSULTANT CHARLES RIVER ASSOCIATES ROLLED OUT SOME INITIAL DATA ON THESE VARIOUS PORTFOLIOS AND HOW THEY ALIGN WITH THE RAC OBJECTIVES WAS, WAS ONE OF THE MOST INFORMATIVE PUBLIC MEETINGS I HAVE EVER ATTENDED, AND I'M STILL ABSORBING ALL THE INFORMATION.
UH, BENNY ETHERIDGE, C P S ENERGY'S EXECUTIVE VICE PRESIDENT OF ENERGY SUPPLY.
WE'LL COVER THIS IN MORE DETAIL IN A MOMENT.
SIMULTANEOUSLY, THERE IS A BROADER PUBLIC INPUT PROCESS THAT MELISSA OLA, C P S ENERGY'S VICE PRESIDENT OF CORPORATE COMMUNICATIONS WILL SPEAK TO, HIGHLIGHTING THE IMPORTANCE THAT THE BOARD PLACES ON RECEIVING INPUT AND FEEDBACK FROM STAKEHOLDERS.
THE RAC LEADERSHIP MEETS BIWEEKLY WITH C P SS ENERGY STAFF TO DISCUSS MEETING AGENDAS AND SPECIFY OBJECTIVES FOR EACH MEETING.
I GENERALLY ATTEND THOSE AS WELL.
AND I ALSO ATTEND ALL RAC MEETINGS,
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AND I PROVIDE A VERBAL AND WRITTEN REPORT TO MY FELLOW TRUSTEES AND THE PUBLIC AT OUR MONTHLY C P SS ENERGY BOARD MEETINGS.ALL OF THIS WORK WILL COME CULMINATE IN THE RAC PROVIDING ITS RECOMMENDATION TO THE C P S ENERGY BOARD OF TRUSTEES IN DECEMBER.
SO THANK YOU FOR THIS OPPORTUNITY TO BE HERE TODAY, AND I WILL NOW TURN IT OVER TO BENNY ETHERIDGE.
GOOD MORNING CHAIR COURAGE COMMITTEE MEMBERS.
I'D LIKE TO TALK A LITTLE BIT ABOUT OUR GENERATION PLANNING PRINCIPLES.
WE PROVIDED YOU WITH A, A LOT OF SLIDES IN THE PRE-READ PACKET, SO I'M GONNA MOVE THROUGH THESE KINDA QUICKLY.
HAPPY TO TAKE ANY QUESTIONS YOU HAVE ALONG THE WAY.
UH, AS YOU CAN SEE HERE, WE, WE, WE START WITH OUR MISSION.
WE'VE GOT PLANTS THAT ARE RETIRING BY 2028, AND WE'VE GOTTA REPLACE THE GEN, THAT GENERATION PLUS OUR COMMUNITY'S GROWTH, WHICH WE'RE CURRENTLY FORECASTING TO BE ABOUT 115 MEGAWATTS PER YEAR.
ROMERO SAY THIS PAST STARTED BACK IN 2021.
I'M EXCITED TO SAY WE'RE, WE'RE GETTING TO THE GOOD PART NOW.
THE RAC TEAM HAS BEEN WITH US.
WE'VE GOT PEOPLE ON BOARD TO SUPPORT US.
AND NOW THE DATA'S COMING OUT AND WE'RE GONNA START THE ANALYSIS PROCESS.
JUST TO STEP BACK, THIS IS A PROCESS THAT WE BEGAN WITH.
WE ENGAGED WITH CHARLES RIVER AND ASSOCIATES TO HELP US PUT A PROGRAM TOGETHER.
YOU'VE SEEN THIS, WE HAD OUR PLANNING OBJECTIVES.
IN FACT, THIS WAS A PART OF A DOT PLOT EXERCISE YOU HEARD, UH, DR.
AND WE HAD OUR EVALUATION CRITERIA OR EVALUATION CRITERIA.
AND THE SCENARIOS, THE SCENARIOS ARE IMPORTANT BECAUSE THEY, THEY WORK WITH THE PORTFOLIOS.
WE'VE ESTABLISHED OUR BASE CASE, THE REFERENCE SCENARIO WE TERM IT IS A CONTINUATION OF LIFE AS WE KNOW IT TODAY.
THE OTHER SCENARIOS FOCUS ON CHANGES THAT CAN OCCUR.
GOT A SLIDE WITH A LITTLE BIT MORE DETAIL THAT YOU'VE SEEN.
THIS JUST SO SHOWS HOW EACH OF THE FIVE VARIABLES CAN BE ADJUSTED TO REFLECT THE PARTICULAR SCENARIO.
AND OF COURSE, AS WE LOOKED AT THESE PORTFOLIOS, WE CONSTRUCTED THEM FROM TWO TECHNOLOGIES, EXISTING GAS TECHNOLOGY OR RENEWABLE TECHNOLOGY.
THE BLEND WAS A, A TECHNIQUE WE USED TO PULL BOTH TOGETHER.
AND THESE ARE THE PORTFOLIO CONCEPTS, WHICH YOU CAN SEE HERE IS WE'VE ADJUSTED RETIREMENT DATES.
AND THEN WE'VE DETERMINED THAT THE UNITS THAT DO RETIRE WOULD EITHER BE REPLACED BY GAS GENERATION, BLENDED GENERATION, OR RENEWABLE GENERATION.
SO THE FIRST SET OF DATA THAT COMES OUT IS FOCUSED ON JUST THE BASE CASE.
AND THEN WE'LL GET INTO THE SCENARIOS.
SO HERE'S HOW THINGS LOOK TODAY.
IN OCTOBER, WE FOCUSED ON THE REFERENCE SCENARIOS.
NOW GOING FORWARD, WE'RE GONNA GET INTO THE, THE, THE DETAILS AROUND EACH OF THE SCENARIOS.
WE'VE GOT A GREAT OPPORTUNITY HERE AND WE TRULY APPRECIATE ALL THE HELP WE'VE BEEN GIVEN, AND WE LOOK FORWARD TO GETTING THIS PROGRAM PULLED TOGETHER AND PRESENTING INFORMATION AND A, A RAG VOTE TO OUR BOARD AT THE END OF THIS YEAR.
UNLESS THERE'S QUESTIONS, I'LL, UH, HAND OFF TO MELISSA AND WE CAN MOVE FORWARD.
WELL, I THINK I HAVE A LOT OF QUESTIONS.
I THINK YOU WENT THROUGH THIS WAY TOO FAST.
AND DID NOT EXPLAIN TO US, TO, TO MY UNDERSTANDING EXACTLY HOW ALL OF THESE SUPPOSED TO WORK.
SO I'D LIKE TO GO BACK TO NEAR THE BEGINNING.
UH, AND I'D LIKE, UM, A MORE IN DEPTH UNDERSTANDING OF THESE GRAPHS AND CHARTS AND THE DETERMINATIONS THAT YOU'RE MAKING.
I DON'T KNOW, WOULD THE OTHER COMMITTEE MEMBERS WANNA HAVE A LITTLE MORE IN DEPTH EXPLANATION? OKAY, SIR.
SO GO AHEAD, BACK TO PAGE FIVE AND HELP US UNDERSTAND, UH, THE DECLINE, UH, THAT'S INDICATED IN THE GRAPH AND WHAT THAT REPRESENTS.
SO THE, THE BLUE BARS, AS YOU SEE, THERE ARE EXISTING GENERATION AND AS IT DECLINES OVER THE YEARS THAT THAT'S A RETIREMENTS THAT ARE OCCURRING.
THE, THE FIRST SET OF UNITS WOULD BE BROING IN 2025, FOLLOWED BY SUMMERS ONE, SUMMERS TWO IN THE OUT YEARS PLUS SPRUCE TWO SPRUCE ONE, EXCUSE ME.
SPRUCE TWO IS A QUESTION THAT WE HAVE TO RESOLVE AS PART OF THE RACK PROCESS.
THE ORANGE BARS YOU SEE REFLECT THE, UH, GENERATION WE'RE BRINGING IN UNDER THE INITIAL FLEX POWER BUNDLE WE ISSUED.
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OUR GENERATION FROM SOLAR ENERGY, BATTERY STORAGE, AND SOME GAS FIRMING GENERATION.THE GAP YOU SEE BETWEEN, UH, I'M GONNA CALL THAT, UH, LIGHT RED AND, UH, ORANGE BAR REFLECTS THE GROWTH THAT WE'RE EXPERIENCING THAT WE STILL HAVE TO COVER.
SO WHAT YOU'RE SAYING IS THAT THE, THE RED BAR ACROSS THE TOP REPRESENTS WHAT WE THINK THE GROWTH IS, AND WE NEED TO GENERATE ENERGY TO MEET THAT GROWTH IS WHAT YES, SIR.
ACCORDING TO THE, THE LAST 20, 27, 20 29 MM-HMM.
AND SO THAT'S PART OF WHAT WE'RE LOOKING FOR, IS TO FIND THE OTHER RESOURCES TO GO AHEAD AND BRIDGE THAT GAP.
UH, YOU KNOW, THAT'S FAIRLY SELF-EXPLANATORY.
CAN YOU EXPLAIN THAT A LITTLE BIT MORE? YES, SIR.
THIS, THIS IS THE, THE PROCESS THAT CHARLES RIVER ASSOCIATES OUTLINE, AND IT'S A PRETTY COMMON PROCESS.
WE, WE BEGIN BY IDENTIFYING OUR PLANNING OBJECTIVES, THAT, THAT IS TO SAY, WHAT, WHAT DO WE WANT TO ACCOMPLISH? WE MOVE TO DEVELOPING MARKET SCENARIOS, UH, THE CONDITIONS THAT COULD EXIST IN THE MARKET, BE IT A CONTINUATION OF THE WAY THINGS ARE TODAY OR VARIOUS EXTREMES.
AND THEN WE HAVE TO DEVELOP THE RESOURCE PORTFOLIOS.
AND THAT'S WHERE WE TAKE A COMBINATION OF EITHER GAS GENERATION, RENEWABLE GENERATION, OR SOME BLEND THEREOF.
ARE THOSE THE NINE WE'RE TALKING ABOUT LOOKING AT RIGHT NOW? THOSE EXAMPLES? YES, SIR.
THERE, THERE'S NINE PORTFOLIOS IDENTIFIED.
AND THEN THERE'S THE PORTFOLIO MODELING AND ANALYSIS.
THAT'S WHERE CHARLES RIVER ASSOCIATES ACTUALLY WORKS THROUGH A MODELING PROCESS TO DETERMINE, UH, THE VALUES FOR EACH OF THE SELECTED, UH, MODELING POINTS.
WHAT WE ALSO DID TO SUPPORT THE RACK, WE HIRED ANOTHER EXTERNAL CONSULTANT, UH, BURNS AND MCDONALD TO WORK WITH THEM.
AND WHAT THEY'RE DOING IS BASICALLY GRADING THE PAPER OF CHARLES RIVER AND ASSOCIATES AND CONSULTATION WITH THE RAG MEMBERS TO MAKE SURE THAT THEY CAN HAVE THEIR QUESTIONS ANSWERED AND HAVE A THIRD PARTY REVIEW OF OUR PROCESS.
AND THEN FINALLY, WE GET TO THE SELECTION OF THE PREFERRED PLAN.
AND FOR THE RACK, THAT MEANS THEY'LL VOTE ON A PREFERRED PORTFOLIO AND THEY WILL, AT THAT TIME, MAKE A RECOMMENDATION TO OUR BOARD FOR CONSIDERATION.
AND WHAT'S THE TIMELINE FOR THAT? THE TIMELINE FOR THAT IS DECEMBER OF THIS YEAR.
THAT'S THE OBJECTIVE TO COMPLETE THE PROCESS AND PRESENT A RECOMMENDATION TO OUR BOARD.
UH, REED WILLIAMS WILL SPEAK ABOUT THAT HERE, UH, WHEN I'M DONE.
UH, COULD YOU GO TO SLIDE NUMBER NINE? YES, SIR.
SLIDE NINE IS THE METRICS AND THE EVALUATION CRITERIA THAT HAVE BEEN IDENTIFIED.
THE FIRST ONE THERE YOU CAN SEE IS SYSTEM RELIABILITY AND CLIMATE RESILIENCY.
AND SO THE MEASURES FOR THAT ARE DIVERSITY OF GENERATION, MIX CAPACITY, HEADROOM, AND THEN CLIMATE RESILIENCY.
AND OUT TO THE RIGHT, YOU SEE THE DETAILS OF THAT.
UH, FOR DIVERSITY OF GENERATION CAPACITY MIX, WE HAVE A PIE CHART OF OUR GENERATION SHOWING EACH OF THE SOURCES AS NOTED THERE, WIND, SOLAR, ET CETERA.
CAPACITY HEADROOM IS JUST THE RESERVE MARGIN WE HAVE AFTER WE'VE MET OUR, OUR DEMANDS IN 2030.
AND THEN FINALLY, CLIMATE RESILIENCY WOULD BE THE REVENUE REQUIREMENTS AND EXTREME WEATHER FOR 2030 PLUS MARKET PURCHASES AND EXTREME WEATHER IN 2030.
AND THEN THAT TAKES US TO ENVIRONMENTAL SUSTAINABILITY.
AND AGAIN, THAT'S PROGRESS TOWARDS OUR, OUR CITY'S CAP PLAN.
AND WE MEASURE THAT AS A PERCENT REDUCTION IN C O TWO INTENSITY FROM OUR GENERATION FLEET RELATIVE TO THE 2016 BASELINE.
THE CARBON INTENSITY C O TWO PER MEGAWATT HOUR OF ELECTRICITY GENERATED BY OUR FLEET IN 2030 AND 2040.
AND FINALLY, THE PERCENT REDUCTION IN ELECTRICITY DEMAND DUE TO ENERGY EFFICIENCY MEASURES IN 2030.
UH, LET ME ASK HERE, WILL THERE BE, UM, SOME METRICS TIED INTO THESE? 'CAUSE YOU JUST SAY PERCENT.
SO WILL THERE BE SOME EXACT PERCENTAGES WILL BE, UH, LOOKING AT AS GOALS? YEAH.
THE, THE PLAN SETS THOSE INITIAL REDUCTIONS AND WE WILL REPORT OUT ON THOSE.
AND THEN FINALLY, AFFORDABILITY, WHICH GETS TO BILL IMPACT AND THEN REVENUE REQUIREMENTS.
THE BILL IMPACT IS THE ESTIMATED MONTHLY BILLS IN 2030 REFERENCE AND SCENARIOS.
UH, WE WILL HAVE THOSE PROJECTIONS AVAILABLE FOR THE RACK HERE SHORTLY FOR THEIR REVIEW.
AND THEN FINALLY, THE REVENUE REQUIREMENTS, WHICH IS THE PRESENT VALUE OF REVENUE NEEDED
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BETWEEN 23 AND 30.AND THEN FINALLY, THE VALUE OF REVENUE REQUIREMENTS BETWEEN 2023 AND 2050.
AND IF YOU DO 10 NOW, NEXT ONE.
I DON'T KNOW IF ANYONE HAS A QUESTION.
ANY OF THE, UH, COMMITTEE MEMBERS ALONG THE WAY.
YOU KNOW, RAISE YOUR HAND, SPEAK UP AFTER.
THE, THE NEXT ONE IS SYSTEM FLEXIBILITY.
AND, AND THAT'S, WE MEASURE THAT BASED ON MARKET PURCHASES AND DISPATCHABILITY, UH, MEASURES PERCENT OF C P S ELECTRICITY DEMAND THAT IS MET THROUGH ERCOT MARKET PURCHASES IN 2030.
AND THEN PERCENT OF GENERATING CAPACITY, THE C P S ENERGY FLEET, UH, THAT CAN HAVE ITS OUTPUT ADJUSTED ON DEMAND IN 2030.
AND THEN FINALLY, WORKFORCE IMPACT, C P SS ENERGY, WORKFORCE IMPACT, AND THE LOCAL ECONOMIC IMPACT.
AND SO WE MEASURE THAT BASED ON THE NUMBER OF C P S ENERGY, GENERATION 30, AND THEN THE TOTAL DOLLARS IN CAPITAL EXPENDITURES FOR NEW GENERATION CAPACITY BUILT IN THE GREATER SAN ANTONIO AREA.
SO I BELIEVE WHAT YOU'RE SAYING, UH, IS THAT BY THE TIME THE RACK GOES TO VOTE, UH, IN DECEMBER ON A RECOMMENDATION THAT A LOT OF THESE PERCENTAGES WILL ACTUALLY HAVE NUMBERS ATTACHED TO THEM.
THERE'S, SO THAT WE'LL BE ABLE TO KIND OF EVALUATE WHAT THOSE TARGET NUMBERS ARE.
NOW, I NOTICED EVERYTHING IS GEARED TOWARDS 2030.
CAN YOU EXPLAIN WHY EVERYTHING JUST GOES TO 2030 AND DOESN'T GO BEYOND THAT? SO THIS INITIAL EFFORT IS FOCUSED ON REPLACING CURRENT GENERATION WITH CURRENT TECHNOLOGY.
THERE ARE MANY NEW OPPORTUNITIES OUT THERE.
WE'RE VERY EXCITED ABOUT THOSE OPPORTUNITIES.
I KNOW YOU'VE HEARD ABOUT GEOTHERMAL ENERGY.
IN FACT, WE'VE, WE'VE SPOKEN ABOUT THAT.
AND NUCLEAR GENERATION, UH, GENERATION USING HYDROGEN.
THERE'S A LOT OF TALK OF THAT.
AND SO WHAT WE HAVE TO DO TODAY IS FOCUS ON WHAT WE CAN DO IN THE HERE AND NOW.
'CAUSE WE HAVE A PRETTY SHORT WINDOW.
AGAIN, UH, THE LAST UNIT RETIRES IN 2028.
WE, WE'VE GOTTA HAVE GENERATION ON THE GROUND TO, OR RISK MARKET EXPOSURE AND OUR PRICES FOR OUR CUSTOMERS.
BUT, UH, WILL WE BE LOOKING AT THE LONG-TERM, UH, RETURN ON THESE ASSETS EVEN IF WE'RE TARGETING 2030 FOR MAYBE MAKING CHANGES OR HAVING ADDITIONS OR ANYTHING? WILL WE BE SEEING THAT IN THAT REPORT THAT NOT ONLY WILL IT TELL US WHAT WE'RE GONNA RECEIVE THROUGH 2030, BUT EVEN BEYOND OUR INITIAL EFFORT WILL JUST FOCUS ON 2030.
BUT HAPPY TO TALK MORE ABOUT AND BEYOND.
FOR EXAMPLE, IF WE INSTALL NATURAL GAS GENERATION TODAY, THAT NATURAL GAS GENERATION CAN BE ADJUSTED, ADOPTED, MODIFIED, TO ALLOW IT TO BURN HYDROGEN OR OTHER RENEWABLE FUELS THAT MAY COME ON THE MARKET BY REPLACING PARTS OF THE COMBUSTION SYSTEM THAT'S HAPPENING TODAY.
WITH GAS TURBINE TECHNOLOGY, FOR EXAMPLE, AS YOU KNOW, WE HAVE OUR PEAKING UNITS AND WE HAVE OUR COMBINED CYCLE UNITS.
UH, TODAY YOU CAN GET A GUARANTEED 30% HYDROGEN BLEND IN THE MARKET FROM ALL THE MA MAJOR MANUFACTURERS.
UH, I CAN TELL YOU THAT ONE OF THE MANUFACTURERS HAS OPERATED ON HYDROGEN AT 70% FOR AN EXTENDED PERIOD OF TIME.
AND IT'S JUST A MATTER OF GUARANTEEING IT.
THEY CAN ACTUALLY OPERATE IT A HUNDRED PERCENT AND THEY HAVE DEMONSTRATED THAT MULTIPLE TIMES, BUT THEY'RE NOT QUITE THERE YET.
THERE'S IDIOSYNCRA THINGS THEY HAVE TO WORK THROUGH WITH THE DESIGN.
AND I IMAGINE THE COST OF HYDROGEN IS MORE EXPENSIVE THAN NATURAL GAS RIGHT NOW TOO.
AGAIN, THE FIRST ONE THERE, THE, THE REFERENCE SCENARIO IS A CONTINUATION OF HISTORICAL TRENDS AND DEMAND GROWTH TECHNOLOGIES, UH, AS WE KNOW THEM TODAY.
AND, AND THAT'S THE ONE WE'VE REPORTED OUT DATA ON SO FAR.
THE NEXT ONE IS A CARBON BASED ECONOMY IN WHICH WE HAVE REDUCED ENVIRONMENTAL REGULATIONS AND NO FEDERAL OR STATE LEVEL CARBON LIMITS.
BUT WE WANTED TO DO A THOROUGH AND COMPLETE REVIEW.
UH, THE NEXT IS A CARBON NEUTRAL, A NET ZERO CARBON ECONOMY, FEDERAL OR STATE LEVEL ECONOMY-WIDE, NET ZERO CARBON TARGETS BY 2045.
AND THEN FINALLY, WE HAVE THE VOLATILE MARKET SCENARIO IN WHICH GEOPOLITICAL CONCERNS DRIVE POLICY DECISION MAKING.
UH, WE MAY BE SEEING EXAMPLES OF THAT IN GERMANY TODAY, FOR EXAMPLE, YOU KNOW, I CAN'T RECALL, BUT MAYBE YOU, YOU'VE LOOKED AT THIS, UH, WHAT WAS OUR, OUR CAP GOAL FOR NET ZERO FOR THE
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CITY IN OUR, IN OUR PLAN, 2050.SO THIS PLAN WOULD BE AHEAD OF THAT.
UH, AND THEN NUMBER 12, SLIDE 12.
THIS, THIS IS WHERE WE LAY OUT EACH OF THESE SCENARIOS ON THE LEFT VERTICAL.
AND ACROSS THE TOP, YOU'VE GOT EACH OF THE FIVE, UH, VARIABLES THAT YOU WOULD ADJUST FOR EACH OF THOSE SCENARIOS.
FOR EXAMPLE, UNDER THE REFERENCE SCENARIO, WE HAVE A BASELINE OF NATURAL GAS PRICES CONTINUE.
BUSINESS AS USUAL, CARBON POLICIES WOULD BE BASELINE.
WELL, THEY'RE ALL BASELINE AS YOU READ ACROSS THE TOP.
WHEN YOU GET DOWN TO A CARBON BASED ECONOMY, WE ANTICIPATE LOWER NATURAL GAS PRICES DUE TO PRODUCTION INCREASES.
NO CARBON PRICE TECHNOLOGY WOULD BE EXISTING AS IT IS TODAY.
AND THEN DEMAND GROWTH WOULD BE HIGH DEMAND DRIVEN BY LOW FUEL AND CARBON PRICES.
WHEN YOU GO DOWN TO THE CARBON NEUTRAL ECONOMY, LOW DUE TO ELECTRIFICATION, DRIVE HIGH CARBON PRICES, FAST DECLINE PLUS INFLATION REDUCTION ACTS, TAX CREDITS, DEMAND GROWTH WOULD, WOULD BE HIGH BASED ON ELECTRIFICATION.
AND FINALLY, THE VOLATILE MARKET FUEL PRICES WOULD BE HIGH.
THERE WOULDN'T BE CARBON PRICE, UH, TO ALLEVIATE INFLATION PRESSURE.
THEN A SLOW DECLINE PLUS INFLATION REDUCTION ACT TAX CREDITS.
SO AS YOU CAN SEE HERE, E EACH OF THE, THE VARIABLES IS ADJUSTED.
WHAT DOES ERCOT T'S, UH, SCENARIOS OR HOW DO THEY AFFECT, UH, WHAT WE'RE WORKING ON FROM RACK OR THE, UH, THE, UH, CHARLES RIVERS PLAN? ARE THEY INCORPORATING THESE OR IS IT SOMETHING THEY'RE LOOKING AT, BUT THEY ARE PLANNING ON WHAT THEY SEE? MAYBE IT'S GONNA BE DIFFERENT FROM WHAT ERCOT IS LAYING OUT.
SO THE ERCOT DATA FORMS THE BASIS OF THE PRICE CURVES THAT WE USE CHARLES RIVER USES IN THEIR MODEL.
SO IT IS FACTORED IN JUST BY VIRTUE OF THE FI, THE CURVES THAT ARE USED AND, AND THE MATH THAT GOES INTO THAT.
AND LET'S GO AHEAD AND GO TO NUMBER 14.
NOW, ALONG THE TOP, YOU'LL SEE THAT WE HAVE P ONE PORTFOLIO, ONE THROUGH PORTFOLIO NINE.
AND THEN BELOW EACH OF THOSE, WE IDENTIFY HIGH LEVEL THE FUEL TYPE.
SO GAS ONLY P TWO WOULD BE A BLEND OF RENEWABLE AND GAS.
THREE WOULD BE RENEWABLES, FOUR WOULD BE A BLEND.
AND THEN FIVE THROUGH NINE WOULD BE ALL RENEWABLES, MEANING EVERYTHING THAT'S REPLACED WOULD BE ONE OF THOSE TECHNOLOGIES.
AND THEN DOWN BELOW THAT, YOU SEE THE UNITS LISTED, UH, THAT ARE UNDER CONSIDERATION.
AND YOU'VE GOT PROJECTED RETIREMENT DATES.
AND YOU SEE THAT THOSE ARE VARIED AS YOU, THE FURTHER YOU GET OUT THERE.
NOW, HOW HARD ARE THESE RETIREMENT DATES? WELL, THEY'RE, THEY'RE SET FOR MODELING PURPOSES.
I WILL TELL YOU THAT WHEN YOU PUSH A UNIT BEYOND ITS EXPECTED RETIREMENT DATE, UH, BASED ON THE CONDITION OF THE UNIT IS HOW WE SET THOSE, THERE IS SIGNIFICANTLY MORE EXPENSE TO MAINTAIN OPERATION OF THE UNIT.
SO PUSHING BEYOND THE TARGET DESIGN LINE, UH, CAN BE EXPENSIVE, BUT SOMETIMES IT STILL COULD REPRESENT THE CHEAPER OPTION IF YOU'VE GOT A NEW TECHNOLOGY SHIFT THAT'S EXPECTED TO OCCUR VERY QUICKLY.
IF YOU OVERBUILD MORE THAN THE MARKET DEMAND REQUIRES, THEN STORAGE WOULD BE AN OPTION.
AND THE, THE STORAGE TODAY, THE TECHNOLOGY WE'VE GOT AVAILABLE TO US IS LITHIUM ION BATTERY.
WE'RE LOOKING AT A LOT OF THINGS, BUT WE'RE NOT THERE YET.
SO, SOLAR, WIND, LITHIUM ION STORAGE.
I UNDERSTAND THAT WE'VE BEEN WORKING WITH SOUTHWEST RESEARCH ON BATTERY RESEARCH.
[00:30:01]
IDEA OF HOW THAT'S GOING AND IF THEY'RE FINDING ANYTHING THAT'S USEFUL FOR US? SO I, NO, I DON'T HAVE AN UPDATE FROM SOUTHWEST RESEARCH BEYOND.THEY'RE, THEY'RE MAKING PROGRESS ON A LOT OF FRONTS, AND THEY'RE LOOKING AT LONGER TERM BATTERIES, INCLUDING FLOW BATTERIES.
UH, THEY'RE, THEY'RE ALL OUT THERE FOR CONSIDERATION.
I CAN TELL YOU, I WAS AT AN INDUSTRY EVENT ABOUT SIX WEEKS AGO, AND TOSHIBA HAS DEVELOPED A LITHIUM TITANIUM BATTERY, WHICH UNLIKE LITHIUM ION IS VERY RESISTANT TO FIRE.
UH, THAT, THAT'S HOW THEY TEST THESE BATTERIES.
THEY SPIKE THE BATTERY TO SHORT IT, AND IT CATCHES ON FIRE AND THEY MEASURE TIME.
AND SUCH LITHIUM TITANIUM RESISTS THAT.
IT SOUNDS LIKE A GREAT APPLICATION FOR AUTOMOTIVE USE, FOR EXAMPLE.
UH, A LOT OF PEOPLE ARE PUTTING A LOT OF MONEY INTO BATTERIES, AND WE DO EXPECT TO SEE A LOT OF CHANGE GOING FORWARD.
I, I NEED TO GO BACK TO SOMETHING REAL QUICK, JUST TO REINFORCE.
RUDY, UH, JUST REMINDED ME THAT AS YOU THINK ABOUT THESE RETIREMENT DATES, ANOTHER POINT OF CONSIDERATION IS WHAT ERCOT WILL ACTUALLY AUTHORIZE US TO DO.
WE HAVE TO MAKE A REQUEST TO ERCOT, AND THEN THERE'S A LOT OF MODELING THAT HAS TO OCCUR IN TERMS OF WHAT CHANGES NEED TO BE MADE TO THE, THE ELECTRICAL GRID, UH, INCREASING SIZE OF CONDUCTORS, TRANSFORMERS, ET CETERA, TO SUPPORT CHANGES THAT WILL OCCUR.
AND SO ERCOT WILL WEIGH IN, AND JUST BECAUSE WE REQUEST TO SUBMIT, UH, TO SHUT DOWN A UNIT AT A PARTICULAR TIME DOES NOT MEAN ERCOT WILL ALLOW THAT.
THEY MAY REQUIRE US TO EXTEND OPERATION FOR A PERIOD OF TIME.
NOW, I KNOW A FEW MINUTES AGO YOU TALKED ABOUT COSTS INVOLVED.
SO I PRESUME THAT THE RACK IS GOING TO HEAR THE ESTIMATED COSTS INVOLVED, WHETHER IT'S LABOR OR TECHNOLOGY COSTS, DEVELOPMENT COSTS, WHATEVER, FOR ALL NINE OF, OF THESE SCENARIOS.
AND THAT'LL BE PART OF THEIR, THEIR DECISION MAKING PROCESS, RIGHT? YES, SIR.
UH, AND COULD YOU DO NUMBER 15 AGAIN? SURE.
SO PAGE 15 IS JUST A HIGH LEVEL OPTICAL.
JUST TO ROLL UP WHERE WE'RE AT TODAY AND SHOW WHAT'S LEFT.
SO TODAY, IN OCTOBER, WE PROVIDED DATA FOR THE REFERENCE SCENARIO.
GOING FORWARD, WE'LL PICK UP THE ADDITIONAL SCENARIOS THAT OCCUR.
I SEE IT SAYS, UH, UP IN THE UPPER RIGHT HAND CORNER, MORE STEP SENSIBILITY SENSITIVITY, LESS STEP SENSITIVITY, BUILD VERSUS BUY SENSITIVITY.
COULD YOU EXPLAIN WHAT THOSE ARE? YES, SIR.
THAT WHAT THEY'RE DOING IS JUST DOING THE MATHEMATICAL MODELING AROUND EACH OF THOSE CASES, JUST TO GIVE AN IDEA OF WHERE WE'RE AT ON THAT.
UH, AND FORWARD LOOKING, THE TIMELINE, I THINK THAT'S PRETTY SELF-EXPLANATORY.
I APPRECIATE YOU REVIEWING THOSE.
I, LIKE I SAID, YOU WENT THROUGH 'EM PRETTY QUICKLY AND NOW I'M, I HAVE A BETTER UNDERSTANDING.
SO WE CAN GO AHEAD AND NOW AND CONTINUE WITH THE REST OF THE PRESENTATION.
IN THAT CASE, I'LL HAND OFF TO MELISSA.
I'M MELISSA SOLA, VICE PRESIDENT OF CORPORATE COMMUNICATIONS AND MARKETING FOR C P SS ENERGY.
AND AS, UH, VICE CHAIR, UH, DR.
WE ARE IN THE PROCESS OF GATHERING INPUT FROM OUR COMMUNITY AS WELL.
AND IT'S ALSO ABOUT INFORMING THEM ABOUT WHAT WE'RE DOING.
AS YOU HEARD, IT'S VERY TECHNICAL, BUT WE'VE REALLY WORKED HARD TO MAKE THINGS, UM, ACCESSIBLE AND EDUCATIONAL FROM OUR, FOR OUR COMMUNITY, STARTING FROM THE VERY BASICS OF HOW WE POWER OUR COMMUNITY.
UH, SO WE DID, WE'VE, UH, ONGOING OUTREACH ABOUT OUR RAC MEETINGS THAT'S BEEN GOING ON FOR A WHILE, AND THAT'S ANOTHER OPPORTUNITY FOR PEOPLE TO GIVE PUBLIC INPUT.
AND OUR GOAL WITH ALL OF THIS IS WE'RE GONNA PACKAGE EVERYTHING UP FOR OUR BOARD MEMBERS AND GIVE THAT TO THEM IN DECEMBER BEFORE THEY MAKE A DECISION.
SO, AS I MENTIONED, WE'VE CREATED SOME MATERIALS, UM, YOU'LL SEE TO A RIGHT, A VERY, A CONDENSED VERSION OF A LARGER DOCUMENT THAT WE HAVE WITH ALL THE BASICS OF WHAT WE'RE DOING AT CURRENTLY AT THIS POINT.
WE DO HAVE A DEDICATED WEBSITE.
IT IS AVAILABLE IN BOTH ENGLISH AND SPANISH.
AND I'M GONNA GO OVER A SURVEY, UM, RESULTS AS OF OCTOBER 17TH.
IN THE NEXT COUPLE OF SLIDES, UM, THESE MATERIALS ARE ALSO AVAILABLE FOR OUR CUSTOMER RESPONSE UNIT.
SO AS THEY'RE OUT IN THE COMMUNITY, THEY'RE ALSO SHARING THIS IN PERSON.
SO MULTIPLE TOUCH POINTS THAT I'LL TALK ABOUT HERE, UM, SHORTLY.
UH, ONE OF THOSE THINGS, UM, THAT WE'VE DONE IS AN OPEN HOUSE.
SO ON OCTOBER 6TH, WE HELD OUR FIRST OPEN HOUSE.
UH, WE HAVE LISTENED TO FEEDBACK ABOUT ACCESSIBILITY AND OF OUR HQ OUR HEADQUARTERS IS CENTRALLY LOCATED.
UH, WE DID HAVE TWO TIME PERIODS WHERE PEOPLE COULD ATTEND A NINE TO 11, UM, UH, OPPORTUNITY AND A FIVE 30 TO A SEVEN 30.
AND IT WAS SET UP AS A COME AND GO OPPORTUNITY WITH OUR C P S ENERGY SUBJECT MATTER
[00:35:01]
EXPERTS THAT WERE GIVING EDUCATIONAL INFORMATION.UH, WE HAD STATIONS ABOUT POWER GENERATION 1 0 1, OUR CURRENT, UH, GENERATION PORTFOLIO, AN OVERVIEW OF THE GENERATION PLANNING PROCESS AND OUR OBJECTIVES.
WE HAD OUR GOVERNMENT RELATIONS TEAM THERE.
WE HAD OUR ENVIRONMENT TEAM THERE AS WELL.
UM, ALSO WITH EVERYTHING THAT WE DO, WE WENT TO MAKE SURE THAT WE'RE HELPING OUR CUSTOMERS.
SO WE HAD CUSTOMER ASSISTANCE AVAILABLE AT THAT EVENT, UH, THROUGHOUT THE DAY.
UM, AND AGAIN, WE DID HAVE, UH, INFORMATION THAT WAS SENT TO YOUR OFFICES.
AND THANK YOU FOR SHARING COUNCILMAN, COURAGE, COUNCILWOMAN ON THE WALL.
SO THANK YOU VERY MUCH FOR THAT.
UM, AND THAT INFORMATION, UM, IS WHAT WE NEED TODAY.
RIGHT? SO BENNY HAS TALKED ABOUT THE RAC PROCESS AND HOW IT'S STILL BEING DEVELOPED IN, IN, UH, COORDINATION WITH, WITH CHARLES RIVERS AND ASSOCIATES.
SO OUR NEXT EVENT WILL BE VERY DIFFERENT 'CAUSE WE'LL HAVE A LOT MORE INFORMATION TO SHARE IN DETAILS.
UM, I MENTIONED, UM, A SURVEY AND, UM, TRUSTEE DR.
ROMERO, UH, REFERENCED THE RAC GOING THROUGH A DOT POT EXERCISE.
AND SO OUR SURVEY MIRRORS VERY CLOSELY WHAT THEY WERE ASKED THEMSELVES.
WE WANTED TO KEEP IT PRETTY SIMPLE.
SO WE ASKED, WE'RE ASKING OUR COMMUNITY TO SELECT THE OBJECTIVES THAT ARE IMPORTANT TO THEM IN THE GENERATION, UH, PLANNING PROCESS IN THE PORTFOLIO.
WE'RE ALSO ASKING THEM WHAT THEIR PREFERENCES AND HOW WE POWER, UM, ENERGY FOR OUR COMMUNITY.
AND THEN WE ALSO OPEN IT UP WITH A, JUST AN OPEN-ENDED QUESTION FOR CUSTOMERS TO GIVE US FEEDBACK.
SO AS OF OCTOBER 17TH, WE'VE HAD 125, UM, PARTICIPANTS, UH, COMPLETE THE SURVEY.
UM, AND AGAIN, THIS IS JUST AS OCTOBER 17TH.
OUR PLAN IS WE'RE GONNA UPDATE THESE NUMBERS EVERY TWO WEEKS AND POST 'EM ON OUR WEBSITE.
YOU'LL SEE THAT THE U R L THERE.
UM, SO AS OF THE 17TH, UM, YOU'LL SEE THAT IN TERMS OF, UH, WHAT THEIR OBJECTIVES ARE FOR THE COMMUNITY SYSTEM, RELIABILITY AND AFFORDABILITY HAVE RECEIVED THE TOP SCORE SO FAR WITH ENVIRONMENTAL SUSTAINABILITY, A CLOSE THIRD.
AND FOR OUR SECOND QUESTION IN, IN TERMS OF HOW THEY WOULD LIKE TO SEE POWER MADE FOR OUR COMMUNITY, UM, YOU'LL SEE THE RENEWABLES, UH, PORTFOLIO, UM, AT THE TOP CURRENTLY.
AND THEN A BLEND, UM, WHICH IS REFLECTIVE OF WHAT WE CURRENTLY DO AS WELL.
SO, SO VERY CLOSE, UM, AND VERY, VERY INTERESTING TO SEE THE COMMUNITY'S, UM, FEEDBACK THERE.
AND THEN ALSO ON THE WEBSITE, WE DO INCLUDE ALL THE VERBATIMS. SO YOU'LL SEE THAT POSTED, UM, EVERY TWO WEEKS.
UM, AS I MENTIONED, WE'RE GOING TO CONTINUE THAT OUTREACH THAT'S ONGOING, THE SURVEY INFORMATION.
WE'RE GONNA CONTINUE TO LOOK FOR OPPORTUNITIES FOR PEOPLE TO COMPLETE THOSE.
UH, WORKING VERY CLOSELY WITH OUR GOVERNMENT RELATIONS TEAMS AND YOUR TEAMS. WE'LL BE PROVIDING YOU UP, UH, UPDATED INFORMATION.
UM, YOU'LL SEE WE'LL HAVE ANOTHER OPEN HOUSE ON DECEMBER THE FIRST.
UM, ACTUALLY, ACTUALLY THAT SHOULD SAY THE LOCATION IS OUR HQ, SO THAT WILL BE AT OUR HEADQUARTERS, UM, AS WELL.
TWO SESSIONS, AGAIN, NINE TO 11, AND THEN FIVE 30 TO SEVEN 30.
UH, WE ALWAYS HAVE SPANISH SPEAKERS AVAILABLE THERE AS WELL.
AND WE'LL MAKE SURE YOU HAVE THAT INFORMATION SO WE CAN GET A LITTLE PUSH FROM, FROM YOUR OUTREACH TOO.
UH, WE ARE GONNA BE WORKING TOO WITH OUR HOAS, UM, STUDENT GROUPS AS WELL.
WE HAD SOME REPRESENTATIVES FROM U I W AT OUR LAST, UM, EVENT.
SO STUDENTS ARE DEFINITELY INTERESTED IN THIS.
UH, WE'RE ALSO HAVE A VIRTUAL TOWN HALL ON DECEMBER THE EIGHTH, AND I THINK THAT'S A FAMILIAR FORMAT FOR YOU ALL AS WELL.
WE'LL HAVE OUR PRESIDENT AND C E O, RUDY GARZA, BENNY.
AND WE'VE ACTUALLY, UM, INVITED DIDI BRAZ, UM, FROM IRAQ AND WHO'S VERY INVOLVED WITH ENVIRONMENTAL GROUP TO PARTICIPATE TOO.
AND WHAT YOU DON'T SEE IN HERE TOO, IS WE'RE ALSO WORKING VERY CLOSELY WITH DIDI AND SOME ENVIRONMENTAL STAKEHOLDERS ON AN EVENT THAT WILL TAKE PLACE ON NOVEMBER THE 15TH.
AND THAT'LL BE AT THE WOODLAWN, UM, OAK WOODLAWN POINT COMMUNITY CENTER.
SO WE'LL MAKE SURE WE HAVE THAT INFORMATION FOR YOU AS WELL.
I KNOW THERE'S BEEN SOME OFFICES THAT HAVE ASKED US TO COME SPEAK.
WE'LL BE DOING THAT THROUGHOUT TOO.
AND IF THERE AREN'T ANY QUESTIONS, WELL, LET ME ASK.
UM, ARE YOU GOING TO, ON OLLIE'S FUTURE OPEN HOUSE AND VIRTUAL TOWN HALLS, ET CETERA, GOING TO ASK PEOPLE TO FILL OUT THE SAME SURVEY THAT THE 125 HAVE DONE SO FAR? YES.
AND WE ALSO HAVE OPPORTUNITIES TO, FOR PEOPLE TO GIVE US VIRTUAL COMMENTS.
AND AGAIN, WE'LL PACKAGE EVERYTHING AND GIVE THAT TO OUR BOARD AND POST IT TO OUR WEBSITE.
WELL, THAT'S ENCOURAGING BECAUSE 125 PEOPLE CERTAINLY ISN'T VERY ENCOURAGING, CONSIDERING YOU'VE GOT, YOU KNOW, A MILLION AND A HALF PEOPLE LIVE IN THE CITY.
SO YEAH, WE'VE GOT, WE'VE HAVE TO, WE DO HAVE TO, TO GET IT OUT THERE MORE.
IT'S A, I THINK THE OPEN HOUSES TOO HAS BEEN A VERY DIFFERENT APPROACH FOR US.
UH, BUT WE HAVE REALLY GOOD FEEDBACK ON, ON THE SETUP THERE AS WELL.
SO I THINK THE INTEREST THAT WE CONTINUE TO GENERATE THROUGHOUT THIS, THROUGH OUR MEDIA OUTREACH AND THROUGH OUR CUSTOMER COMMUNICATION, WE'LL GET THOSE NUMBERS UP.
WHAT'S THE CHALLENGE OF PUTTING IN PEOPLE'S
[00:40:01]
BILLS THAT THEY GET, UH, A LINK TO GO TO THE SURVEY AND ANSWER QUESTIONS? YES.I KNOW IT'S JUST A, A MATTER OF BALANCING SOME OF THE INFORMATION THAT WE HAVE TO PUT IN BILLS OVER THE NEXT, UM, COUPLE OF MONTHS.
SO SPACE IN BILLS AND BILL CREDIT IS GONNA BE A PRIORITY FOR US FOR BILL SPACE AND CUSTOMER BILLS.
UH, BUT WE'LL GET THAT INFORMATION DIRECTLY TO CUSTOMERS TOO.
WELL, I'LL LOOK AT MY BILL TO SEE HOW MUCH ROOM I THINK THERE IS AND MAKE A RECOMMENDATION FOR YOU.
THERE'S ALWAYS SOME THINGS YOU CAN PUT OFF, BUT, UH, ANYWAY, THANK YOU VERY MUCH YES.
AND NOW WE'LL HEAR FROM THE RAC COMMITTEE CHAIR REED WILLIAMS. YES.
JOE WILLIAMS. THANK YOU FOR BEING HERE TODAY.
WELL, THANK YOU VERY MUCH FOR HAVING ME.
UH, I APPRECIATE THE OPPORTUNITY TO TALK TO YOU.
AND AGAIN, I WANT TO, UH, THANK C P S, UH, DR.
ROMERO AND, UH, COUNCILMAN SUNDAL.
THEY'VE ALL WORKED VERY WELL WITH US TO GET THIS GOING.
WE'VE HAD A GREAT, UH, VICE CHAIR AND DR.
THE, UH, THE WHOLE CONCEPT OF MODELING AND, AND WHEN YOU HEAR PORTFOLIOS, SCENARIOS, OBJECTIVES, METRICS, I MEAN, SOMETIMES YOU KIND OF WANNA ROLL YOUR EYE UP AND GET ON YOUR PHONE, BUT THE REALITY IS, IT'S, IT'S NOT ALL THAT COMPLICATED.
AND WE'VE IZED FROM TWO OR THREE DIFFERENT DIRECTIONS, UH, TO REALLY THINK ABOUT WHAT KIND OF DECISION.
MY, MY JOB IS NOT TO RUN THE NUMBERS.
IT'S TO FACILITATE A DECISION.
AND, AND FACILITATING THE DECISION TO A LARGE EXTENT, IS TRYING TO GET PEOPLE TO UNDERSTAND WHAT KIND OF DECISION WE'RE MAKING.
BECAUSE THEY IMMEDIATELY JUMP INTO THE MODELS AND THEY DON'T THINK ABOUT, WELL, WHAT ARE WE DOING? OKAY, WELL, WE'RE MAKING WHAT YOU COULD CALL IS A BRIDGING DECISION, AS YOU POINTED OUT.
WE DON'T HAVE THE TECHNOLOGIES COMMERCIALIZED TO A POINT THAT WE CAN TAKE THE RISKS TO PUT 'EM IN.
NOW, SINCE IT'S A BRIDGING DECISION AND IT'S AN EIGHT TO 10 YEAR DECISION, THE CHALLENGE IS TO GO FORWARD WITHOUT MESSING UP SO BAD.
YOU CREATE YOURSELF A PROBLEM IN THE FUTURE.
AND SO, IF YOU LOOKED AT THE SLIDES, UH, CLOSELY, WE'VE GOT A 2030 TIMEFRAME, WE'VE GOT A 2040 TIMEFRAME.
SO WE ARE TAKING A, A LOOK FORWARD, BUT GENERALLY THAT MEANS JUST DON'T SPEND A LOT OF MONEY.
OKAY? DO WHAT YOU CAN AND SPEND AS LITTLE MONEY AS YOU CAN AND MAKE PROGRESS.
AND SO WHEN WE'RE DOING THIS, WE ONLY HAVE TWO THINGS TO DO.
WE'RE NOT DEALING WITH THE FLEX POWER BUNDLE THAT'S ALREADY BEEN DECIDED.
WE JUST HAVE TO DO TWO THINGS.
STOP BURNING COAL AND REPLACE A 50 YEAR OLD PLANT.
OKAY? IT'S NO MORE COMPLICATED THAN THAT.
THAT'S, THAT'S WHAT WE'RE HERE TO DO.
AND SO HOW DO WE DO THAT? OKAY, WELL, WE DO IT BY, AS THE DOT PLOT SHOWED THAT DR.
ROME MERRILL HELPED US WITH, AS THE SURVEYS HAVE DONE, AND AS Y'ALL'S QUESTIONS HAVE POINTED OUT, IS WE'VE ONLY GOT THREE THINGS.
OKAY? ARE WE MEETING THE CLIMATE ACTION PLAN? Y'ALL SPEND A TREMENDOUS AMOUNT OF TIME, EFFORT, BLOOD, SWEAT, AND TEARS ON THAT.
SO, YOU KNOW, IT'S A GATE ISSUE.
OKAY? AND THERE'S TWO SCENARIOS THAT DON'T MEET IT.
SO, YOU KNOW, IN MY MIND, YOU CAN PUT THE NUMBERS IN THERE, BUT I'M NOT GONNA WASTE ANY TIME ON 'EM.
THE NEXT THING IS, IT'S JUST TWO THINGS.
IT'S TRADE OFF BETWEEN RISK AND COST, JUST LIKE YOUR HOME BUDGET OR BUYING A CAR OR ANYTHING ELSE.
YOU KNOW, IF WE WANT TO LOWER THE RISK DOWN TO ZERO, WE CAN SPEND A LOT OF MONEY.
IF WE WANT TO TAKE MORE RISK, SPEND LESS MONEY.
AND, AND REALLY THE COST TRANSFERS INTO AFFORDABILITY.
WE HAVEN'T BEEN SEEN THE COST NUMBERS YET.
WE'LL SEE 'EM SOON AND WE'LL GET PLENTY OF TIME TO LOOK AT 'EM.
AND AS BENNY SAID, WE'VE GOT A CONSULTANT THAT'S HELPING US GO THROUGH THOSE AND GET PEOPLE COMFORTABLE WITH A DECISION THAT WE CAN'T SEE ALL THE INFORMATION.
'CAUSE IT'S, SOME OF IT'S CONFIDENTIAL.
SO THE, THE, THE, THE WORK THAT C P S HAS DONE TO GET US AN OUTSIDE CONSULTANT TO GIVE US A LOOK, SEE ON THIS, HAS BEEN VERY HELPFUL.
AND I THINK IT CREATED A LOT OF CREDIBILITY, UH, FOR THE PROCESS.
AND, AND NO ONE CAN SAY, WELL, YOU KNOW, SOMETHING'S BEING HIDDEN.
IF THEY SAY IT'S, AND YOU HIRED THEM, SO YOU GOTTA TRUST THEM.
NOW, IF WE'RE GOING THROUGH THIS PROCESS AND WE'RE TALKING ABOUT, I JUST WANNA TALK ABOUT TWO THINGS, COST AND RISK.
COST IS REALLY AFFORDABILITY, BUT IT'S MORE THAN AFFORDABILITY.
OUR CITY NEEDS TO MAINTAIN ITS COMPETITIVENESS, AND WE NEED TO AFFORD MAINTAIN AFFORDABILITY.
OKAY? THAT IS THE BIGGEST ISSUE WITH MOST PEOPLE IS WHAT'S IT GONNA COST.
AND IF WE ALLOW OURSELVES TO GET IN A POSITION WHERE WE ARE CHARGING MORE AND MORE AND MORE, EVENTUALLY WE'RE GONNA PUT ALL OF OUR FOLKS IN TROUBLE AND WE'RE GONNA DRIVE ANY
[00:45:01]
FUTURE GROWTH AWAY FROM THE CITY.AND THEN WE HAVE TO THINK ABOUT RISK.
OKAY? RISK IS WHAT THEY CALL, AND THEY'RE IN THESE WORDS, THEY'RE USING IT AS RELIABILITY.
WE SAW THAT IN SPADES WHEN SOME OF THE PLANTS, WE HAD PLENTY OF CAPACITY, THEY JUST DIDN'T OPERATE.
SO IT'S NOT JUST HAVING CAPACITY, IT'S HAVING CAPACITY THAT YOU CAN OPERATE WHEN YOU NEED TO OPERATE IT, OKAY? AND THAT'S WHAT WE'RE TRYING TO GET.
THAT'S WHAT C P S MANAGEMENT'S TRYING TO DO.
THEY'RE TRYING TO UPGRADE THEIR PLANTS AND GET THEMSELVES IN A POSITION WHERE WE DON'T HAVE TO BURN COAL, AND WE CAN BE RELIABLE WHEN WE NEED TO.
SO LET'S TALK REAL QUICKLY ABOUT ONE MORE THING.
UH, AND THAT IS, HOW ARE WE GOING ABOUT THIS DECISION PROCESS? WELL, IF YOU GO BACK AND READ THE BYLAWS OF THE RACK, YOU HAVE TO HAVE 13 VOTES TO RECOMMEND ANYTHING.
IF YOU'VE GOT 21 PEOPLE, THEORETICALLY YOU CAN, YOU CAN NEVER COME TO A DECISION.
I'M JUST TRYING TO MAKE 'EM WORK.
WE WILL START OUT, AND LIKE I SAID, I THINK AS FAR AS I'M CONCERNED, THE TWO, UH, PORTFOLIOS, AND I CALL 'EM CASES AND SCENARIOS, WHICH I CALL SENSITIVITY ANALYSIS, BUT WE ALL HAVE TO LOOK AT, BUT SEVEN, OKAY? BECAUSE IF YOU'RE NOT GONNA MAKE THE CLIMATE ACTION PLAN, DON'T EVEN, DON'T, THAT'S JUST A GATE ISSUE.
WHAT KIND OF COSTS ARE WE GONNA LOOK AT? WE HAVE TO LOOK AT TWO SETS OF COSTS THAT ARE GOING TO ULTIMATELY IMPACT THIS COUNCIL.
WE, IF THEY MADE A VERY GOOD DECISION, C P SS DID TO TAKE THEIR FINANCIAL METRICS AND MAKE 'EM CONSTRAINT CONSTRAINTS, OKAY? IN OTHER WORDS, WE'RE NOT GONNA LOOK AT THE METRIC AND SAY, DOES THAT WORK FOR US? THEY'RE GONNA BE SET, THEY'RE CONSTRAINT IN THE MODEL.
SO THEREFORE IT HAS TO BE MET.
THERE'S ONLY THEN TWO MORE KNOBS THAT YOU CAN DO.
YOU CAN BORROW MONEY OR YOU CAN INCREASE RATES.
OKAY? SO WE'RE GONNA LOOK AT TWO SETS OF, OF COSTS.
WE'LL LOOK AT A SET OF COSTS THAT ARE FLOW THROUGH COSTS, WHICH ARE UNDER THE POWER PURCHASE AGREEMENT OR THE POWER PURCHASE.
THEY'RE POWER PURCHASE AGREEMENTS.
THERE'S FUEL ADJUSTMENTS, THERE'S THE STEP PROGRAM AND THERE'S REGULATORY FEES.
THOSE ALL JUST COME THROUGH THE BILL.
THE OTHER COSTS COME TO Y'ALL FOR APPROVAL, OKAY? AND IN THAT IS WHERE YOU'RE GOING TO SEE THE EFFECT OF BORROWING MONEY, WHICH Y'ALL HAVE TO APPROVE, OR YOU'RE GONNA SEE THE EFFECT OF RATE INCREASES.
SO WE'LL GET NOT JUST A DISCOUNTED NUMBER BACK TO SOME TIME PERIOD, BUT WE WILL SEE, UH, THE, UH, PROFILES OF THOSE CASH FLOWS.
SO WE CAN SEE THE TIMING OF WHEN SOMETHING MIGHT BE OF INTEREST TO THE COUNCIL IN THE FUTURE.
THE RISK SIDE IS JUDGMENT, OKAY? THERE'S A LOT OF PEOPLE THAT ARE, THAT ARE VERY RISK AVERSE, AND THERE'S A LOT OF PEOPLE THAT ARE SAYING, LET'S TAKE THE RISK.
BUT AS BENNY SAID, WE HAVE TO BE CAREFUL THAT WE DON'T GO TAKE RISKS ON TECHNOLOGIES THAT AREN'T COMMERCIALIZED.
THEY WILL BE, THERE'S A LOT OF PEOPLE WORKING ON THIS BENNY'S.
ABSOLUTELY RIGHT? THERE'S A TREMENDOUS AMOUNT OF WORK GOING ON THIS.
SO I'M CONVINCED THAT IN EIGHT OR 10 YEARS, WE'RE GONNA HAVE A WHOLE DIFFERENT GROUP OF THINGS TO LOOK AT.
BUT RIGHT NOW WE'RE TRYING TO HIT THE 2030 PLAN SO THAT WE'RE STAY ON TRACK, WE'RE TRYING TO KEEP THE RISK DOWN, WE'RE GONNA MAKE SURE THAT WE COMPLY AND WE GET THE COST UNDER CONTROL.
THAT'S ALL WE'RE TRYING TO DO.
WE'RE GONNA DO IT WITH SEQUENTIAL VOTINGS.
OKAY? SO WE'LL TAKE ALL OF THE, UM, WE'LL TAKE ALL OF THE NINE OPTIONS.
WE'LL LET EACH RAC MEMBER VOTE FOR THEIR FIRST CHOICE.
THAT GIVES EVERYBODY INFORMATION THAT SAYS, WHAT ARE THE FIRST CHOICE? IF EVERYBODY COULD JUST PICK WHAT THEY WANT.
AND OF COURSE, WE'RE IN A WORLD OF PEOPLE PICKING WHAT THEY WANT.
SO YOU GOT, YOU GOTTA GO THROUGH THAT PROCESS, AND THEN YOU START COMPROMISING.
WE'LL DROP ALL EXCEPT THE TOP FOUR OUT.
WE'LL HAVE A DISCUSSION, IF YOU NOTICED ON THERE, WE'RE HAVING TWO, WE'RE HAVING FOUR SESSIONS WITH BURNS AND MCDONALD.
WE'RE HAVING A SEPARATE DISCUSSION SECTION, A NOVEMBER MEETING, AND THEN A DECEMBER VOTING MEETING.
AND IN EACH ONE OF THOSE CASES WHERE WE DROP OUT A CASE, WE START WITH FOUR VOTE, WE GOT THREE, WE WILL GO AROUND AND LET PEOPLE TALK.
THAT'S ALL THAT, THAT WE NEED.
AND THAT IS INFORMATION FOR THE COMMUNITY, IT'S INFORMATION FOR THE COMMITTEE, AND IT SHOULD ALSO BE INFORMATION FOR THE COUNCIL.
WE WILL THEN DROP THE THIRD ONE OUT, AND WE'RE DOWN TO TWO.
MAYBE WE GET IT, MAYBE WE DON'T.
WE COULD COME UP WITH A 10 TO 11 VOTE, AND I'M GONNA BE BACK UP HERE SAYING, YOU KNOW, THAT'S THE VOTE.
WE DON'T HAVE A QUOTE UNQUOTE, ACCORDING TO BYLAWS OF RECOMMENDATION.
HOPEFULLY WE WILL NOT GET TO THERE.
HOPEFULLY THE DISCUSSION WILL DRIVE IT TO ONE OF THESE OPTIONS.
THAT'S ALL I HAVE, AND IF YOU GOT ANY QUESTIONS, I'M HERE.
I WILL JUST ASK, UH, THE BURNS CONSULTANTS ARE THE ONES THAT ARE GONNA BE LOOKING AT THE RIVER'S WORK AND DETERMINE WAS IT ADEQUATE? WAS IT CORRECT? WAS IT, YEAH,
[00:50:01]
THERE, THERE'S CERTAIN INFORMATION COUNCILMAN THAT, THAT C P S JUST CAN'T DISCLOSE.OKAY? AND SO WE HAVE THE CONSULTANTS THAT HAVE SIGNED A CONFIDENTIALITY AGREEMENT, SO CHARLES RIVERS CAN RELEASE IT TO BURNS AND MCDONALD BURNS.
AND MCDONALD CAN SIT THERE IN THEIR JUDGMENT, SAY, YES, WE THINK THAT'S REASONABLE, THAT THEY'RE SAYING THE RIGHT THING.
WE BRIDGE THE, IF YOU WILL, THE LACK OF TRUST GAP BY HAVING SOMEONE TO DO THAT FOR US.
AND I, AND I THINK IT'S HELPED, AND I APPRECIATE CP S'S PERSON, DEPARTMENT, AND EVERYBODY ELSE GOING TO THE EXTRA EFFORT TO DO THAT FOR US.
UH, WHAT I'D LIKE TO DO NOW IS ASK EITHER OF THE OTHER COMMITTEE MEMBERS IF THEY HAVE SOME QUESTIONS THAT THEY'D LIKE TO BRING UP TO ANY OF THE SPEAKERS AND COUNCILWOMAN ROCHA GARCIA, WOULD YOU LIKE TO BEGIN? YES, THANK YOU, UH, CHAIR AND, AND THANK YOU SO MUCH TO ALL OF YOU.
ROMERO'S CLASS IF THEY'RE STILL WATCHING
REALLY, REALLY HAPPY ABOUT THAT.
UM, AND OF COURSE TO MY APPOINTEE, UH, MR. RE WHO ALWAYS SENDS ME THE PRESENTATION.
SO HE SENT ME THE, THE 90 PAGER, UM, LAST WEEK.
AND SO I'LL FOCUS MY QUESTIONS ON THAT.
AND THEN I HAVE A, A LITTLE BIT OF, OF QUESTIONS IN GENERAL, BUT I'M GLAD TO SEE THAT WE'RE CONSIDERING GENERATION PLANNING.
OBVIOUSLY, ONE OF MY QUESTIONS WAS SIMILAR TO COUNCILMAN COURAGES, UM, OR TO CHAIRMAN COURAGE.
AND, UM, IT WAS WHY ONLY THROUGH 2030, RIGHT? UM, BUT, BUT I UNDERSTAND, UM, HOWEVER, I, I DO HAVE A QUESTION.
IT'S, IT'S ALSO KIND OF RELATING TO THAT STILL.
SO THERE IS, UM, AND I GUESS I'LL, I'LL REFERENCE THE EXACT PAGE.
UM, ON PAGE 32, IT SAYS, ALL UNIT RETIREMENTS REQUIRE ERCOT APPROVAL AND ASSOCIATED TRANSMISSION RELIABILITY UPGRADES COULD DETERMINE FINAL RETIREMENT DATES, RIGHT? SO I THINK COUNCILMAN COURAGES QUESTION WAS, OR CHAIR WAS, UM, ARE WE BASICALLY ON TRACK FOR 2028? I THINK WAS, WAS PART OF HIS QUESTION.
UM, AND, AND, AND THE REASON THAT I'M ASKING THAT SPECIFICALLY IS BECAUSE IN ON PAGE 15, YOU HAVE NEW GENERATION RESOURCES MAY NOT BE AVAILABLE TILL 2026.
SO BRIDGE PER PURCHASES WILL BE CONSIDERED AS NEEDED.
SO I'M TRYING TO UNDERSTAND WHAT THE REAL TIMELINE IS.
THEN COUNCILWOMAN, UH, GREAT QUESTION.
AND I, I THINK THIS HAS KIND OF BEEN SOME OF THE DYNAMICS OF WHAT THE RAC PROBABLY HAS STRUGGLED WITH THE MOST.
IT'S THE UNCERTAINTY AROUND THE, THE, THE OPERATING CONDITIONS IN WHICH WE HAVE TO MAKE THESE DECISIONS.
WHAT WE NEED, FIRST OFF, IS OUR BOARD TO GIVE US SOME GUIDANCE ABOUT WHAT THEY THINK OUR MIX SHOULD LOOK LIKE, YOU KNOW, GOING FORWARD, UH, THAT ALLOWS US TO START MAKING, YOU KNOW, SOME, SOME PLANS THAT WILL CERTAINLY INVOLVE DISCUSSIONS WITH COUNCIL BECAUSE TO THE, ALL OF THE, ANYTHING WE DO GOING FORWARD AND, AND WE'RE ALWAYS LOOKING 20 YEARS OUT.
SO, YOU KNOW, TO TO, TO JUST ALLEVIATE ANY CONCERN YOU HAVE THAT WE'RE NOT THINKING LONGER TERM.
YOU KNOW, I MEAN, WE JUST GOT BACK FROM A TRIP TO GO LOOK AT THE BATTERY STORAGE TECHNOLOGY, YOU KNOW, OVERSEAS BECAUSE WE GOTTA GET, YOU KNOW, SOME, SOME OF THAT, UH, UH, TECHNOLOGY, YOU KNOW, IMPLEMENTED HERE IN SAN ANTONIO, BECAUSE THAT MAKES OUR SOLAR RESOURCES MORE VALUABLE, YOU KNOW, UM, O OVER THE LONGER TERM, RIGHT? SO, SO WE ARE DOING THE WORK, WE'RE GONNA DO, THE WORK WE NEED TO DO TO INVEST THE, THE, THE, IN THE TECHNOLOGY DEVELOPMENT IN THE OUTER YEARS, YOU TAKE COAL OUT OF THE MIX, RIGHT? WE, WE CAN'T RELY ON COAL GOING FORWARD AND, AND BUILDING BIG NUCLEAR IS, IS GONNA BE REALLY DIFFICULT.
SO WE'RE TALKING ABOUT NATURAL GAS RENEWABLES, YOU KNOW, STORAGE OF ALL KINDS AND, UM, YOU KNOW, AND THEN MAYBE SOME SMALL MODULAR NUCLEAR AND SOME OTHER TECHNOLOGIES.
SO, SO, SO WE HAVE, SO WHAT WE'RE PLANNING FOR TODAY IS THE 3000 MEGAWATTS THAT WE KNOW WE'RE GONNA HAVE TO REPLACE THE OLD NATURAL GAS UNITS AND THE, YOU KNOW, AND THE, AND THE BO BOAST SPRUCE UNITS, ASSUMING THAT, THAT, THAT'S WHERE OUR BOARD GO, YOU KNOW, GENERALLY OUR BOARD GIVES US, GIVES US THAT DIRECTION.
UM, THEN WE START THE PROCESS OF NOTIFYING ERCOT WHEN WE INTEND TO START TAKING PLANTS OFFLINE.
I'LL REMIND YOU THAT ERCOT HADN'T BUILT A NATURAL GAS PLANT IN 10 YEARS IN THE STATE OF TEXAS.
AND, YOU KNOW, THEY'RE NOT FORCING, YOU KNOW, CONSTRUCTION OF PLANTS, YOU KNOW, GOING FORWARD.
SO, SO, SO WHAT ERCOT DOES TO FILL THEIR GAP ACROSS THE STATE IS THE, IS GONNA BE A BIG DRIVER IN WHAT HAPPENS WITH OUR OWN GENERATION.
AND WE'LL, WE WILL ONLY KNOW THAT ONCE WE ACTUALLY START NOTIFYING ERCOT THAT WE HAVE PLANS TO TAKE GENERATION OFFLINE, RIGHT? AND SO, SO THAT'S KIND OF THE DYNAMIC THE BOARD HAS TO TELL US, YEAH, WE'D LIKE TO CLOSE THESE PLANTS BY 20 25, 20 26, WE START NOTIFYING ERCOT, AND THEN ERCOT TELLS US WHETHER OR NOT THAT WORKS WITH THEIR, WITH THEIR MODELING.
AND I'M GLAD THAT YOU MENTIONED THAT BECAUSE IT, IT TALKS ABOUT IN, IN THE FOOTNOTES, SORRY, I READ FOOTNOTES TOO.
ERCOT MAY REQUIRE TRANSMISSION RELIABILITY UPGRADES TO THE GRID, WHICH TYPICALLY TAKE FOUR TO FIVE YEARS.
RIGHT? SO THEN IF WE'RE IN THE 2026 TO
[00:55:01]
2027 TIMELINE, THEN HOW FEASIBLE IS IT TO MEET THAT TIMELINE IF IT'S GONNA TAKE? WELL, I MEAN, WE'VE ALREADY GOT THE TRANSMISSION PLANNING WORK THAT WE KNOW WE'RE GONNA NEED.A LOT OF OUR OLDER GENERATION IN SAN ANTONIO, THERE'S TWO GEN, THERE'S TWO TRANSMISSION LOOPS.
THERE'S THE, THE OLDER LOWER HIGH VOLTAGE TRANSMISSION SYSTEM THAT'S 138,000 VOLTS VOLTS THAT'S SERVED BY OUR OLDER GENERATION THAT WAS BUILT YEARS AND YEARS AGO.
THEN WE HAVE THE 3 45 K KV SYSTEM AROUND THAT.
SO WE'RE GONNA HAVE TO BUILD SOME CONNECTIONS BETWEEN THE TWO WITH SOME SWITCHYARDS TO BE ABLE TO, YOU KNOW, TO, TO PROP UP THAT 138 SYSTEM ONCE WE START TAKING GENERATION OFFLINE.
SO OUR TRANSMISSION PLANNING TEAM IS ALREADY DOING THE WORK, UM, AND STARTING THE PROCESS TO GET SOME OF THOSE TRANSMISSION LINES BUILT BASED ON THE, THE RETIREMENT DATES THAT OUR BOARD ULTIMATELY APPROVES.
SO, UM, MY NEXT QUESTION IS ON SPRUCE TOO, RIGHT? AND SO, UM, GAS CONVERSION IS LIKELY NOT FEASIBLE BEFORE 2027, IT SAYS.
SO BRIDGE PURCHASES WILL BE CONSIDERED IF, IF IT LOOKS LIKE IF WE GO WITH P EIGHT AS NEEDED, WHAT TYPE OF BRIDGE PURCHASES WOULD THAT BE? UH, ANYTIME YOU'RE BUILDING, YOU'RE, YOU'RE BUYING POWER OFF THE MARKET.
AND THEN I HAVE A QUESTION ON DISTRIBUTED ENERGY RESOURCES.
HOW DID THAT TAKE, UH, OR HOW DID YOU ALL TAKE THAT INTO CONSIDERATION AS YOU ALL WERE, WERE LOOKING AT THE PLAN? WELL, UH, IF YOU REMEMBER FROM THE LAST RATE CASE DISCUSSION, PART OF THE INVESTMENT WE ASK COUNCIL TO CONSIDER HAD TO DO WITH OUR SYSTEM UPGRADES THAT WE NEED.
WE, WE'VE GOTTA REPLACE, YOU KNOW, A 22 YEAR OLD, UH, UH, IT INFRASTRUCTURE SYSTEM, UM, THAT WILL ALLOW US TO GET, TO BE ABLE TO VALUE DISTRIBUTED ENERGY RESOURCES ACCORDING TO WHAT'S GOING ON IN THE MARKET.
WE, WE KNOW HOW WE HAVE, WE HAVE ABOUT 300 MEGAWATTS OF ROOFTOP SOLAR, UH, IN OTHER MARKETS THAT JUST GOT BACK FROM A CEO'S, A NATIONAL CEO'S MEETING FOR PUBLIC POWER CEOS.
AND IN OTHER MARKETS, YOU KNOW, THEY CAN ACTUALLY PAY, UH, SOLAR SYSTEMS AS A GENERATOR.
HERE WE GIVE 'EM RETAIL CREDIT, BUT WE REALLY DON'T TREAT 'EM AS A STANDALONE GENERATOR.
WE COULD, IF OUR SYSTEMS ALLOWED US TO.
AND THAT'S WHY THE, THE, THE, THE WORK WE'RE DOING TO UPGRADE OUR COMPUTER SYSTEMS REALLY GETS US TO THE OTHER SIDE OF ACTUALLY TREATING THOSE RESOURCES AS A, AS A, AS A ITS OWN GENERATING UNIT.
AND I APPRECIATE THAT, ESPECIALLY WITH LIKE ELECTRIC VEHICLES, RIGHT? AND SO ONE OF THE THINGS THAT I FEEL THAT WE DON'T DO ENOUGH, UM, IN GENERAL, RIGHT, IS, UM, THE R AND D UH, COMPONENT.
AND SO WE KEEP SAYING, WELL, WE'RE NOT CERTAIN ABOUT THESE TECHNOLOGIES.
I APPRECIATE THAT WE'RE CONSIDERING HYDROGEN AND GEOTHERMAL, BUT WHAT ELSE, RIGHT? LIKE, WHAT ON THE TECHNOLOGY SIDE CAN WE LEVERAGE? AND SO, SO I APPRECIATE THE, THE INVESTMENT IN THAT.
UM, I WAS WONDERING WHAT KIND OF FACTORS WENT INTO THIS MODEL, UH, IN, SO, SO WE, WE KNOW, WE SEE THE PATTERNS OR, OR WE SEE THE PROPOSED, UM, PORTFOLIOS, THE NINE POTENTIAL PORTFOLIOS.
UM, BUT WHAT ABOUT STATE POLICIES, THE ECONOMY, FUTURE WEATHER PATTERNS? WHAT, WHAT ELSE DO YOU ALL LOOK AT? I, HERE, I'M GONNA PHONE A FRIEND HERE IN VINNY, BUT I WOULD TELL YOU THAT THE, THE, THE FOUR OR FIVE VARIABLES THAT WE'RE RELYING ON ARE THE PRIMARY DRIVERS OF HOW WE WOULD VALUE OUR GENERATION PORTFOLIO OVERALL.
SO THERE MAY BE 15 OTHER VARIABLES OUT THERE, BUT THEY'RE NOT GONNA DIRECTLY IMPACT WHAT, WHAT OUR OVERALL PORTFOLIO.
'CAUSE WE MANAGE ALL OF OUR MEGAWATTS AS A, AS ONE BIG RESOURCE, RIGHT? YOU KNOW, WE WE'RE ALWAYS LOOKING AT WHAT'S THE MOST VALUABLE, WHAT, WHAT'S IN THE MONEY, WHAT SAVES OUR, WHAT KEEPS OUR BILLS AFFORDABLE.
IN SOME CASES WE MAY HAVE, YOU KNOW, UH, GENERATION ON THE SIDELINE BECAUSE IT'S CHEAPER TO GO OUT INTO THE MARKET AND BUY POWER, YOU KNOW, IN SOME INSTANCES AND SO WE'LL GO OUT AND BUY POWER BECAUSE IT BENEFITS OUR CUSTOMERS.
SO, YOU KNOW, WEATHER, UH, LOAD GROWTH, YOU KNOW, THE THINGS THAT ARE, THAT ARE BEING CONSIDERED AS PART OF THE MODEL ARE THE PRIMARY DRIVERS OF WHAT, HOW WE VALUE OUR GENERATION PORTFOLIO OVERALL.
IS THAT HELPFUL? YES, THAT'S HELPFUL.
BUT I THINK HE WANTS TO ADD SOMETHING.
NO, WELL, ACTUALLY WHAT I'D ADD IS RUDY HIT THE NAIL IN THE HEAD.
THAT'S, THAT'S HOW WE LOOK AT IT.
SO, AND, AND JUST, AND, AND I KNOW THIS IS SOMETHING THAT, THAT ALL OF US, YOU KNOW, THINK ABOUT.
AND SO, UM, FUTURE WEATHER PATTERNS, RIGHT? AND SO THAT'S, I WAS IN, IN PARTICULARLY, PARTICULARLY INTERESTED IN THAT.
UM, AND THEN I, I DO WANNA THANK, UH, IT LOOKS LIKE, UH, RAC MEMBER BEL MARES WAS THE ONE THAT PROPOSED P FIVE THROUGH P NINE, UM, THAT TOOK A LOT OF WORK.
SO, UH, JUST WANTED TO GO ON THE RECORD, RIGHT, SAYING THANK YOU FOR, FOR ALL OF YOUR HARD WORK ON THAT.
UM, I WAS ABLE TO REVIEW THE SLIDES THAT, THAT YOU ALL PRESENTED TO THE RAC, AND I SAW THAT THERE WAS THE TWO MODELS, RIGHT, THAT I'M TALKING, OR THAT I'M TALKING ABOUT WITH NINE POTENTIAL PORTFOLIOS.
CAN YOU ELABORATE MORE, UM, ON THE, THE PORTFOLIOS SPECIFICALLY AND, AND WHAT IT, WHAT IS IT LOOKING LIKE IS MOST FEASIBLE OUT OF THESE? OKAY, SO LET ME GO BACK TO THE PORTFOLIOS.
[01:00:07]
OKAY.SO IN, IN TERMS OF ELABORATION, I GUESS, UM, WE'VE ADJUSTED RETIREMENT DATES TO MAKE ROOM FOR REPLACEMENT.
MAJORITY OF THESE, AS NOTED, INCLUDE RENEWABLE GENERATION OF THE RENEWABLE GENERATION.
TODAY, WE, WE HAVE A CHOICE OF SOLAR AND, AND WIND.
THOSE ARE THE TWO BIG DRIVERS FOR US.
AND IN TERMS OF GAS GENERATION, THAT WOULD EITHER BE A LARGE FRAME SIMPLE CYCLE MACHINE, A COMBINED CYCLE.
AND OUR A V R AND RIO PLANTS ARE GOOD EXAMPLES ARE A PEAKING UNIT.
WE'VE GOT THE LEE UNITS, UH, ONE THROUGH EIGHT.
THE SMALL 50 MEGAWATT ISH PEAKERS ARE RECIPROCATING ENGINES.
YOU, YOU KNOW, WE JUST RECENTLY ARE WORKING THROUGH A PROCESS WITH SAWS TO GET RECIPROCATING ENGINES AT, AT THEIR SITES FOR RESILIENCY PURPOSES.
WELL, THERE'S LARGER MODELS ALSO, UH, ABOUT 17 MEGAWATTS A PIECE TYPICALLY THAT CAN BE BROUGHT TOGETHER.
AND THEY, THEY HAVE VERY, VERY FAST START TIMES.
AND SO THEY OFFER GOOD PROTECTION.
AS WE THINK ABOUT OUR GENERATION, IT'S ALL ABOUT WHAT CAN WE PUT IN PLACE TO PROVIDE A PHYSICAL HEDGE TO OUR CUSTOMERS FROM MARKET PRICES.
AND, AND SO WE, WE DO HAVE A GOOD SELECTION OF GENERATION TECHNOLOGIES AVAILABLE TODAY.
IT'S JUST NOT THE, THE NEW STUFF WE'RE VERY INTERESTED IN, BUT WE JUST NEED TO GET IT TO MARKET.
I ALSO APPRECIATE THE FACT THAT, UM, ON PAGE 11, THE, THE REPORT, YOU TALK ABOUT TOTAL CAPITAL EXPENDITURES FOR THAT NEW GENERATION CAPACITY.
UM, I WAS WONDERING WHAT ABOUT, SO WE TALK ABOUT, UH, SYSTEM FLEXIBILITY AND MARKET PURCHASES, BUT WHAT ABOUT OUR SALES? ARE, ARE, ARE YOU TALKING ABOUT LIKE WHOLESALE SALES? YES.
DO YOU HAVE PROJECTIONS ON THAT, OR DO YOU, WAS THAT TAKEN AT ALL INTO ACCOUNT AND, AND WHERE THAT COULD BE MAYBE FOCUSED, SO NOT DIRECTLY.
THAT'S MORE OF AN INDIRECT CONSIDERATION.
IF WE HAVE EXCESS GENERATION, WHICH BY DESIGN, WE, WE ALWAYS WANT TO CARRY AN, AN ADEQUATE RESERVE MARGIN SO THAT WHEN WE TAKE UNITS AND CAPACITY OFFLINE FOR MAINTENANCE, FOR EXAMPLE, OR, OR A BREAKDOWN THAT THAT OCCURS TOO, WE KNOW THAT, THAT WE CAN STILL MEET OUR OBLIGATIONS.
UH, GOING TO THE MARKET IS LIKE OUR THIRD CHOICE, IF YOU WILL, BUT IT IS THERE FOR US TODAY.
UM, AND WELL, AND, AND I, I HAVE SOME MORE QUESTIONS, BUT IT'S FINE.
COUNCIL MEMBER SANDOVAL, UH, THANK YOU CHAIR.
AND, UH, THANK YOU TO THE FULL TEAM FOR THE PRESENTATION ON, UH, WHERE THE RAC IS.
UH, I THINK, UH, BENNY, WHAT YOU WENT THROUGH WAS REALLY, UH, IMPORTANT FOR THE COUNCIL, OR AT LEAST THE THREE OF US TO, TO BE AWARE OF AS, AS WE MOVE FORWARD.
UM, I WAS AT THE LAST RAC MEETING WHEN WE WENT THROUGH THE FIRST, UM, MODELING, UM, PORTFOLIO, UM, ON THE BASE CASE SCENARIO.
SO I KNOW THERE'S STILL A LONG WAY TO GO.
UM, BUT I WAS NOT AT THE PRIOR ONE, UM, WHERE YOU IDENTIFIED THE, UM, THE PRIORITIES.
UH, BUT I'M, I'M GLAD TO SEE THAT, THAT THAT WHICH PRIORITIES CAME OUT ON, ON, ON TOP.
UH, I DO HAVE SOME, UH, SOME QUESTIONS THEREFORE ABOUT, ABOUT THAT DISCUSSION.
UM, OH, ALSO, I DO WANNA RECOGNIZE THAT THE CHAIR OF THE C P S BOARD IS HERE.
I DON'T KNOW IF YOU GOT A CHANCE TO, OH, OKAY.
MACKEY, FOR YOUR SUPPORT OF ALL OF THIS PROCESS.
UM, IN SLIDE NINE, UM, THERE ARE TWO, UH, THINGS THAT I HAVE A QUESTION ON.
ONE OF THEM HAS TO DO WITH, UH, DEMAND GROWTH BEING THE SAME IN YOUR BASE CASE.
SORRY, I THINK IT MIGHT'VE BEEN THE ONE BEFORE.
UM, WELL, WHEN YOU DESCRIBED YOUR BASE CASE SCENARIO, YOU SAID, UM, NO, NO, ACTUALLY NINE IS FINE.
NINE IS FINE BECAUSE I APOLOGIZE, THIS IS A LONG PRESENTATION.
YOU'VE GOT, UM, YOU TALK ABOUT REVENUE UNDER SYSTEM RELIABILITY AND CLIMATE RESILIENCY ON THE FAR RIGHT.
UM, REVENUE REQUIREMENTS IN EXTREME WEATHER AND MARKET PURCHASES AND EXTREME WEATHER.
UM, BUT YOUR BASE CASE HAS GROWTH TO CONTINUE, AS WE'VE SEEN.
UM, SO THE ONE CONCERN I HAVE IS, UH, WELL, I'M GLAD THAT YOU'RE TAKING INTO ACCOUNT
[01:05:01]
EXTREME WEATHER, HOWEVER, UH, THE GROWTH THAT WE'VE CURRENTLY SEEN MAY BE DIFFERENT JUST BECAUSE OUR TEMPERATURES ARE GETTING WARMER.SO EVEN WHEN WE DON'T HAVE EXTREME WEATHER, RIGHT, WE HAVE HOTTER WEATHER.
SO, UM, IS THAT TAKEN INTO ACCOUNT WHEN YOU TALK ABOUT YOUR GROWTH? BECAUSE I THOUGHT YOUR GROWTH WAS ON POPULATION OR ACTIVITY, BUT NOT SO MUCH ON THE WEATHER.
SO I, I BELIEVE IT HAS BEEN, WE DO REACH OUT AND, UH, FOR CRA'S PURPOSES, THEY PULL TOGETHER NATIONAL FORECAST DATA THAT THAT IS FACTORED INTO THE MODEL FOR, FOR GROWTH.
I KNOW THAT OUR TEAM ADOPTS THAT INFORMATION.
SO I'LL, I'LL TELL YOU THAT THE BEST INFORMATION THAT THE NATIONAL WEATHER SERVICE HAS, WE HAVE, 'CAUSE THAT, THAT WOULD BE HOW WE WOULD SOURCE THAT INFORMATION.
SO IT'S FUNNY, I HAVE A STAFF MEMBER WHO'S BEEN READING A LOT LATELY ABOUT THE NATIONAL WEATHER SERVICE, SO MAYBE I WILL HAVE TO ASK HIM IF THEY'RE TAKING THAT INTO ACCOUNT.
SORRY TO EMBARRASS YOU, I'M NOT SORRY.
BUT HE KNOWS A LOT ABOUT THE NATIONAL WEATHER SERVICE.
UM, MY OTHER QUESTION HAS TO DO WITH UNDER ENVIRONMENTAL SUSTAINABILITY, UH, ON THE FAR RIGHT, THERE'S ALSO, UM, ONE OF YOUR MEASURES IS PERCENT REDUCTION IN DEMAND DUE TO ENERGY EFFICIENCY MEASURES IN 2030.
DOES THAT, I GUESS, WHAT DOES THAT MEAN? IS THAT, UH, SOMETHING THAT C P S WOULD BE PROMOTING OR IMPLEMENTING? OR IS THAT JUST, UH, ANTICIPATED THAT THE PUBLIC WOULD DO? I, SO I THINK ON THAT ONE, THAT, THAT GETS BACK TO OUR STEP PROGRAM, FOR EXAMPLE, WHERE THERE ARE THINGS WE'RE DOING TO ACTIVELY CREATE SAVINGS IN, IN GENERATION REQUIREMENTS.
UM, SO HOW EFFECTIVE YOU WOULD ANTICIPATE THEM TO BE? SO COUNCILWOMAN, WHAT, WHAT I'D SAY IS, YOU KNOW, PART OF, UH, FLEXING, YOU KNOW, MORE OR LESS ENERGY EFFICIENCY AS PART OF THIS MODELING PROCESS IS ANTICIPATION OF, UM, YOU KNOW, US PLANNING FOR SOME LEVEL OF ENERGY EFFICIENCY, THAT, THAT ALLEVIATES A NEED TO PLAN FOR ADDITIONAL GENERATION.
SO THERE'S GONNA BE SOME AMOUNT OF THE, OF GROWTH THAT AUTOMATICALLY KIND OF GETS CAPTURED BY THE, THE OUR STEP PROGRAM.
YOU KNOW, AND, AND AGAIN, AND, YOU KNOW, I KNOW WE RECENTLY JUST HAD A CONVERSATION ABOUT DOING MORE WEATHERIZATION.
SO TO THE EXTENT THE POLICY, YOU KNOW, COMES DOWN FROM COUNCIL THAT YOU, THAT YOU WANT AS A COMMUNITY, AS TO, TO DOUBLE DOWN ON ENERGY EFFICIENCY, THEN THAT WOULD FACTOR IN, YOU KNOW, TO THE AMOUNT OF GENERATION WE WOULD PLAN TO, IF WE'RE TRYING TO, YOU KNOW, ACHIEVE 1%, YOU KNOW, OF OUR, OF OUR, UH, GROWTH AND DEMAND THROUGH ENERGY EFFICIENCY, THEN, THEN THAT WOULD BE BECOME PART OF OUR PLAN.
SO, ENERGY EFFICIENCY IS VERY MUCH, YOU KNOW, PART OF OUR STRATEGY GOING FORWARD.
SO, SO JUST TO CLARIFY AND MAKE SURE I UNDERSTAND, WHEN YOU SAY MEASURES, THOSE ARE INPUTS INTO YOUR MODEL? YES, MA'AM.
UM, AND, UH, I'LL GO ON TO SLIDE 16, WHICH GOES THROUGH THE TIMELINE.
THANK YOU VERY MUCH FOR, FOR PROVIDING THAT.
UM, COULD YOU TELL ME WHERE THE M U C OR THE COUNCIL ARE ON THIS TIMELINE? I, I DON'T BELIEVE NEED TO APPROVE ANYTHING, BUT I IMAGINE THAT THERE WILL BE A CONVERSATION WITH COUNCIL.
SO, CHAIR AND COMMITTEE MEMBERS, THERE HAS BEEN SOME DISCUSSION ON THE TIMELINE, AND I THINK THERE'S BEEN SOME DISCUSSION AROUND A JANUARY B SESSION, UM, WHERE I THINK WE NEED TO COORDINATE WITH THE BOARD CHAIR AND THE BOARD TO MAYBE CONSIDER MAYBE, UM, HAVING THEM TAKE THIS TOPIC UP AT THEIR JANUARY BOARD MEETING.
UH, SO THE THOUGHT WOULD BE, HAVE THE RAC GO THROUGH THEIR PROCESS, HAVE THEIR VOTE OCCUR, HAVE THE COUNCIL BRIEFED IN B SESSION.
WE ARE NOT, AS YOU MENTIONED, WOULD BE TAKING ACTION, BUT I THINK IT'D BE IMPORTANT FOR THE COUNCIL TO BE AWARE OF WHERE THAT ENDS UP.
AND THEN IT WOULD THEN MOVE ON TO THE FULL C P S BOARD.
SO, UM, THAT TIMELINE WE'RE, WE'RE STILL WORKING ON, BUT THAT'S GENERALLY WHAT WE'RE TRYING TO DO.
UM, I'D LIKE TO MOVE ON TO SLIDE 23.
I, I WANNA SAY I WAS SURPRISED, UM, AND, AND HAPPY TO SEE THAT SOME OUTREACH WAS DONE AROUND THIS, UM, FIVE YEARS AGO OR PRIOR TO, UH, DR.
I DON'T THINK WE WOULD'VE SEEN AN ACTIVITY LIKE THIS, UH, FROM, FROM C P SS.
SO, UM, IT'S, IT'S CLEARLY A, A NEW DAY.
UM, SO, AND I, I DON'T THINK WE EVEN ASKED YOU TO, TO DO THAT.
IT'S ALL, UM, YOU KNOW, THE, THE DIRECTION OF, OF YOUR MANAGEMENT AND YOUR BOARD.
I, I WAS A LITTLE WORRIED THOUGH WHEN I SAW THE MATERIALS GO OUT, UH, ABOUT THE LANGUAGE THAT WAS BEING USED.
YOU KNOW, IT'S LIKE YOU SAID, IT'S A VERY TECHNICAL, COMPLICATED SUBJECT, EVEN EVEN FOR OUR IRAQ MEMBERS.
UH, SO I, I DON'T KNOW IF THE AVERAGE MEMBER
[01:10:01]
OF THE PUBLIC WOULD HAVE KNOWN WHAT THEY WERE GETTING THEMSELVES INTO WHEN THEY HEARD GENERATION PLANNING.I MEAN, THEY HEARD IT FROM C P S, SO MAYBE IT HAS SOMETHING TO DO WITH ELECTRICITY, BUT IN GENERAL, I MEAN, GENERATION MEANS, YOU KNOW, YOUR FAMILY, RIGHT? OR YOUR, YOUR PROGENY.
SO I, I AM WONDERING IF THERE IS, UM, IT'S SOME LANGUAGE THAT'S A LITTLE BIT MORE ACCESSIBLE TO THE PUBLIC THAT, UM, WE COULD BRAINSTORM ABOUT.
WE CAN GET TOGETHER AND, UM, GO OVER THOSE MATERIALS.
CANTU AND DEE AGAIN TOO, 'CAUSE WE DID MEET WITH THEM BEFORE WE EVEN LAUNCHED EVERYTHING SO THAT WE COULD GET THEIR FEEDBACK AS WELL.
I, I KNOW SOMEONE WHO HAS A PHD IN MARKETING WHO, UM, MAY, MAY BE AVAILABLE.
UM, I, UH, WOULD LIKE TO MOVE ON TO, UH, BURNS, BURNS AND MCDONALD AND HOW, I'M NOT SURE WHO COULD ANSWER THIS QUESTION, BUT HOW WILL THAT OPERATE? SO ONCE, UM, THE FIRST GROUP, UH, CHARLES RIVER ASSOCIATES, DO THEY FINISH AND THEN BURNS AND MCDONALD'S COMES IN? HOW DOES THAT WORK? ACTUALLY, WE'VE INTEGRATED THE PROCESS BURNS AND MCDONALD IS ACTUALLY WORKING WITH C R A.
THEY, THEY COME IN AND MEET WITH 'EM FROM TIME TO TIME WHERE THEY SHARE AND REVIEW INFORMATION.
REID, DID YOU HAVE ANYTHING YOU WANTED TO ADD TO THAT? UM, SO IF, IF YOU GO BACK TO THE, UH, MORE DETAILED, UH, SCHEDULE, YOU'LL SEE THAT WE, WE WE'RE SUPPOSED TO BETWEEN NOW AND THE NEXT MEETING IN NOVEMBER.
THAT'S THE, SO WE'VE GOT A, WE'VE GOT A MEETING ON THE 17TH OF NOVEMBER, AND AT THAT MEETING, BEFORE THAT MEETING, WE'RE SUPPOSED TO SEE THE NUMBERS OKAY.
AND TRYING TO START GETTING THOSE OUT.
BUT IN NOVEMBER, WE SHOULD HAVE FULLY POPULATED, UM, DATA SETS, IF YOU WANT TO CALL IT THAT.
AND, AND IN BETWEEN THOSE YOU DON'T SEE.
BUT THERE, IN NEXT WEEK, WE'VE GOT A TWO HOUR SESSION IN THE MORNING, TWO HOUR SESSION IN THE AFTERNOON WITH BURNS AT MCDONALD BURNS, AT MCDONALD'S.
SO THAT, THAT, IF THERE'S ANY QUESTIONS FROM WHEN WE GET THE, HOPEFULLY THE, THE COSTS OUT, OR ANY QUESTIONS FROM LAST WEEK THAT PEOPLE HAVE LOOKED AT, THEY WILL HAVE AN OPPORTUNITY TO GO ONLINE, HAVE A FREE FLOWING DISCUSSION WITH BURNS AT MCDONALD, ASK ANYTHING THEY WANT TO, AND EITHER IN A MORNING SESSION OR AFTERNOON SESSION.
THEN WE GO INTO NOVEMBER, AND THEN WE, WE THE NOVEMBER, UH, 17TH MEETING, THEN BETWEEN THE NOVEMBER 17TH MEETING AND OUR SPECIAL MEETING ON THE 6TH OF DECEMBER, WE'LL REPEAT THAT WITH BURNS AT MCDONALD.
SO AGAIN, PEOPLE, ALL THE RACK INDIVIDUALS WILL HAVE THE TIME TO ASK THEM QUESTIONS FOR TWO, TWO HOUR SESSIONS.
THEN IN THE, UM, THEN THE SPECIAL MEETING ON THE SIXTH, THAT WILL BE WITH, PRIMARILY WITH US AND BURNS AND MCDONALD AND, AND CHARLES RIVERS IF THEY WANT TO PROTECT.
BUT THAT'S WHERE, WE'LL, AGAIN, FOR, FOR ABOUT THE FIFTH TIME, WE'LL GIVE PEOPLE A CHANCE TO, TO SAY, NOW I DON'T UNDERSTAND THIS, OR I WANT TO ASK THIS.
I MEAN, IT'S A, YOU, YOU GOTTA REALLY GET PEOPLE COMFORTABLE WITH THE PROCESS, BECAUSE A LOT OF TIMES PEOPLE ARE EMBARRASSED TO ASK QUESTIONS, AND WE'RE TRYING TO GET IT TO WHERE THEY CAN FEEL LIKE THEY CAN EITHER DO IT OFFLINE IN A ZOOM CALL, OR THEY CAN DO IT ONLINE IN A MEETING AND GIVE 'EM AS MANY OPPORTUNITIES AS THEY WANT TO.
THEORETICALLY, IF THEY WANTED TO, TO CALL UP TO THE FOLKS FROM BURNS AND MCDONALD AND ASK 'EM SOMETHING COMPLETELY OFFLINE, WE COULD MAKE THAT AVAILABLE TOO.
SO ALL WE'RE TRYING TO DO IS, IS MAKE THIS RESOURCE AVAILABLE TO THE RAC MEMBERS AND GET 'EM COMFORTABLE WITH THE PROCESS TO TRUST THE PROCESS.
AND I THINK WE HAVE PLENTY OF TOUCH POINTS ON THAT.
CHAIR WILLIAMS. UM, SO THOSE SESSIONS ARE OPEN, IN OTHER WORDS.
SO THOSE, THOSE QUESTIONS WILL NOT BE NECESSARILY ASKED IN PRIVATE.
THEY'RE OPEN AT, THEY'RE OPEN.
UM, FOUR HOUR SESSIONS ARE, ARE ZOOM SESSIONS.
NOW I HAVEN'T FIGURED OUT, OR SOMEBODY HADN'T TOLD ME NO.
THEY'RE THOSE FOUR, THOSE FOUR, TWO HOUR SESSIONS ARE ZOOM SESSIONS.
AND I ASSUME THAT THOSE WILL BE RECORDED TOO.
'CAUSE WE'RE RECORDING EVERYTHING.
WHETHER THEY'LL BE CONTEMPORANEOUSLY, UM, UH, CONTEMPORANEOUSLY, UM, PUT ON THE AIR.
BUT THEY'LL CERTAINLY BE RECORDED.
AND I'VE GOT PEOPLE THAT, THAT JUST GO OVER ON THE SIDE AND ASK 'EM QUESTIONS TOO.
SO WE'RE NOT, WE'RE NOT SAYING YOU CAN'T TALK TO THE PERSON IF YOU SEE 'EM IN THE MEETING.
UM, I, I DO HAVE ANOTHER QUESTION.
[01:15:01]
MUCH, CHAIR.THAT'S WHAT I WANTED TO KNOW IS ARE THEY AVAILABLE TO THE RAC MEMBERS NOW? UH, YOU KNOW, NOW THAT ALL THIS INFORMATION IS COMING AT THEM, UH, I WILL JUST CONFIRM THAT WE ARE GOING TO LIVE STREAM THOSE Q AND A SESSIONS AND THAT WE WILL ALSO POST 'EM TO THE WEBSITE AS WELL.
AND THEN, UM, IN TERMS OF BURNS AND MCDONALD, ONE THING I'D LIKE TO ASK THEM TO, TO REVIEW, UM, I DON'T KNOW IF I CAN DO THAT, OR IF I HAVE TO FIND A RAC MEMBER WHO WILL ASK THEM,
RAC MEMBERS, THIS CALL IS GOING OUT TO ALL RAC MEMBERS.
UM, THE CLOSURE OF SPRUCE IN 2028, I, I WOULD LOVE IF, UH, BURNS AND MCDONALD COULD EVALUATE WHETHER OR NOT THAT CAN OCCUR SOONER.
UM, IF IT DOES NOT DEPEND, OR, AND THE CONVERSION TO, TO GAS OF, OF SPRUCE TWO, UM, BASICALLY UNDER WHAT CONDITION, HOW, HOW QUICKLY CAN THAT BE CLOSED AND WHAT, WHAT ARE THE CONSTRAINTS THAT COME ALONG WITH THAT? YEAH, LET, LET ME JUST, UH, WE, WE'VE ALREADY TALKED ABOUT THAT SOME AMONG OURSELVES, AS YOU MIGHT IMAGINE.
UH, THIS IS AN OPTIMIZING MODEL.
SO THAT CLOSE DOWN DATE IS A CONSTRAINT.
ALL CONSTRAINTS IN AN, IN AN LP HAVE SHADOW PRICES.
AND IT WILL TELL US WHAT IT COSTS TO EXTEND THAT, OR WHAT WE SAVE TO EXTEND THAT.
'CAUSE IT'S A COST MINIMIZATION MODEL, RIGHT? SO WE WILL HAVE SOME INFORMATION ON THAT.
AND THAT HAS ALREADY BEEN A DISCUSSION ITEM WITH A LOT OF FOLKS ON, ON THAT ITEM.
BUT AS RUDY SAID, ALL OF THIS HAS TO GET PERMISSION FROM ERCOT.
SO WE HAVE TO KIND OF PUT SOMETHING IN THE GROUND AND LET
I, I JUST DUNNO IF THAT'S SOME THANK YOU VERY MUCH.
CHAIR WILLIAMS. I JUST DUNNO IF THAT'S SOMETHING THEY CAN DO, BECAUSE IT'S NOT SO MUCH MODELING IT, IT'S ACTUALLY LOOKING AT THE TECHNOLOGY, UM, OF, OF THE PLANT ITSELF.
SO MAYBE, I DON'T KNOW IF THEY'RE THE APPROPRIATE ENTITY TO DO THAT, BUT IF YOU'RE TALKING ABOUT CHECKING THE WORK, I, I WOULD THINK THAT'S SOMETHING THAT I'D, I'D LIKE TO KNOW ABOUT.
UM, LASTLY, I, I DO WANNA THANK MY APPOINTEE TO THE RAC.
A CANTU, WHO, I DON'T KNOW HOW SHE DOES IT ALL, BUT, UH, SHE IS ON A LOT OF BOARDS.
UM, AND, UH, DIDI, WHO IS HERE WITH US TODAY.
UH, ONE QUESTION THAT I HAVE, AND IT'S, IT'S REALLY RELATED TO WHAT WE ARE LOOKING AT AS FAR AS REPLACEMENT.
BY 2030, ARE WE LOOKING AT REPLACING THE EXACT SAME AMOUNT OF ENERGY WE ARE GENERATING TODAY? OR ARE WE ANTICIPATING, UH, AN INCREASE IN THE AMOUNT OF GENERAT GENERATION POWER THAT WE WANT TO HAVE BETWEEN NOW AND 2030? AND WHAT KIND OF RESERVE CAPACITY ARE, ARE WE LOOKING AT? BECAUSE WE KNOW THE PRICE OF, OF GAS CAN VARY FROM $25 TO THOUSANDS OF DOLLARS FOR THE UNITS THAT WE NEED.
SO, UH, COULD YOU ANSWER THAT? YES, SIR.
UH, IF YOU LOOK AT THE WORK WE'VE DONE ON THE FLEX POWER BUNDLE, THAT REALLY WAS TO, UH, UH, GIVE US SOME FLEXIBILITY TO, TO REPLACE OUR OLDER NATURAL GAS STEAM UNITS.
SO, UM, THE WORK THAT WE'RE DOING RIGHT NOW REALLY IS TO REPLACE, YOU KNOW, THE OLD STUFF AND TO, TO MAKE A DECISION ON SPRUCE.
UH, THE MAKING DECISION ON SPRUCE WILL REQUIRE US TO GO DO SOME OTHER THINGS.
AND THE BOARD HAS TO GIVE US, UH, DIRECTION, YOU KNOW, ALONG THOSE LINES.
UH, THIS SUMMER, YOU KNOW, WE HAD, WE HAD ISSUES WITH A COUPLE OF OUR PLANTS.
AND SO OUR ABILITY TO MONETIZE OPPORTUNITIES IN THE WHOLESALE MARKET, YOU KNOW, WAS REDUCED.
WHEN YOUR PLANTS AREN'T AVAILABLE, YOU KNOW, YOUR FOCUS IS, MY JOB IS TO KEEP THE LIGHTS ON HERE IN SAN ANTONIO AS A PRIORITY.
AND THEN IF WE'RE ABLE TO MAKE MONEY ON THE MARKET, THEN THAT'S WHAT WE DO.
UM, AND SO, UH, SO ONE OF THE THINGS THAT WE'VE TALKED ABOUT, AND THAT CERTAINLY WE'RE TALKING TO THE BOARD ABOUT, IS THE IDEA THAT WE HAVE TO GO OUT AND MAKE STRATEGIC PURCHASES WHEN OUR PLANTS AREN'T AVAILABLE TO STAY AT SOME LEVEL OF RESERVE MARGIN.
IN THE ERCOT MARKET, YOU KNOW, THEY'RE TYPICALLY PLANNING TO A 13.7% RESERVE MARGIN.
YOU KNOW, I'D LIKE OURS TO BE A LITTLE HIGHER THAN THAT.
UH, AND, AND WE WILL HAVE THAT CONVERSATION WITH THE BOARD WHEN WE START, WHEN WE PRESENT THEM WITH, UH, WITH, WITH WHAT WE BELIEVE A RECOMMENDATION WOULD BE THAT ALLOWS US TO DO OUR JOB FOR OUR COMMUNITY.
IT WILL INCLUDE A RESERVE MARGIN NUMBER THAT WE WILL TRY TO STICK TO REGARDLESS OF WHAT THE CONDITION OF OUR OWN GENERATING UNITS IS.
WHAT THAT MEANS IN REALITY IS YOU GOTTA GO OUT AND MAKE SOME STRATEGIC PURCHASES FOR THE SUMMER, YOU KNOW, OR THE WINTER, WHATEVER THE CASE MIGHT BE, TO KEEP YOUR, YOUR RESERVE MARGIN AT 20% IF ULTIMATELY THAT'S WHAT THE BOARD DECIDES IS THE RIGHT NUMBER.
SO, UH, COUNCILMAN, WE ARE THINKING IN THOSE RE IN, IN THAT RE UH, REGARD.
UH, I BELIEVE IT'S, IT'S A, A NUMBER BETWEEN 15 AND 20%.
MAKES ME FEEL COMFORTABLE THAT, THAT WE'LL HAVE THE, THE RESERVE WE NEED TO SERVE OUR COMMUNITY.
UH, BUT YOU KNOW, THE BOARD MIGHT TELL US IT'S 25%.
IT JUST DEPENDS ON, UH, YOU KNOW, WHAT WE EXPECT THE OPPORTUNITY
[01:20:01]
IN THE ERCOT MARKET TO BE.AGAIN, THINK ABOUT IT FROM THIS PERSPECTIVE.
WHEN ERCOT IS NOT BUILDING ANY NEW GENERATION, THEN ALL THE GENERATORS, ALL THE LOAD SERVING ENTITIES IN THE ERCOT MARKET ARE ALL COMPETING FOR THE SAME EXCESS GENERATION THAT'S AVAILABLE THROUGH THE MERCHANT PLANTS THAT ARE OUT THERE, YOU KNOW, ENTERING INTO BILATERAL CONTRACTS.
SO WE'RE COMPETING FOR THAT CAPACITY.
AND SO WE WANNA MAKE THOSE DECISIONS AS FAR AHEAD, UH, OF, OF, OF, OF, OF, UH, OF THE TIME WE'RE GONNA NEED 'EM AS POSSIBLE SO WE GET THE BEST PRICE FOR OUR CUSTOMERS.
I THINK THE OTHER PART OF MY QUESTION ABOUT THIS IS THAT IF WE'RE GOING TO DO SOME CONVERSION, AND IT LOOKS LIKE THAT'S A COUPLE OF THE OPTIONS.
UH, TO WHERE WE'RE GOING TO, UH, STOP WITH COAL AND INCLUDE GAS, WE'RE LOOKING AT REPLACING SOME FORM OF GAS WITH, I PRESUME GAS.
UH, YES, WE WANT TO EXPAND OUR RENEWABLES.
SO THAT COULD BE PURCHASING MORE WIND OR, OR BUILDING MORE, UH, SOLAR.
BUT HAVE WE BEEN SOLID CONTRACTS ON NATURAL GAS, PARTICULARLY IF WE'RE GONNA BE EXPANDING THE AMOUNT OF GAS WE'RE GONNA BE USING BECAUSE WE'RE GONNA BE CONVERTING A PLANT OR TWO OR, OR BUYING A NEW PLANT TO REPLACE SOMETHING THAT WE'RE SHUTTING DOWN.
UH, IS THE MARKET STILL GOOD FOR GETTING SOME LONGER TERM SOLID CONTRACTS? AND ARE WE STILL ACTIVELY PURSUING SOMETHING? YES, SIR.
WE, WE ARE IDENTIFYING OPTIONS AS WE SPEAK ON ADDITIONAL GAS OPPORTUNITIES, SHOULD THAT BE THE DIRECTION WE GO IN.
I THINK THAT, UH, CONCLUDES OUR, OUR BEGINNING PRESENTATION.
COUNCILWOMAN HAS ONE MORE QUESTION.
I KNOW WE'VE BEEN ON THIS TOPIC FOR A LONG TIME, BUT RUDY, YOU JUST, UH, SAID SOMETHING THAT, UH, GAVE ME PAUSE REGARDING YOUR RESERVE MARGIN.
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
IN OTHER WORDS, AS WE TRANSITION TO MORE RENEWABLE GENERATION ACCOUNTING FOR RESERVE MARGIN, IT, THERE'S GREATER INTERMITTENCY THAT HAS TO BE ADDRESSED.
NOW, STORAGE PROTECTS US FROM THAT, BUT SO DOES DISPATCHABLE GENERATION.
SO RUDY'S RIGHT IN THAT WE WILL BE LOOKING, GOING FORWARD AT CHANGING OUR RESERVE MARGIN TO CONTINUE TO PROTECT OUR CUSTOMERS CUSTOMERS.
BUT THE 13.75 WE BUILT IN TODAY WILL GET US TO THE PLACE WE'RE TRYING TO GO, AND THEN WE WILL CONTINUE WITH A RISK ASSESSMENT AND CONSULTATION WITH OUR BOARD.
LEMME LEMME JUST ADD AND COUNCILWOMAN, I APPRECIATE YOU KIND OF COMING BACK TO THIS.
YOU KNOW, AGAIN, AS I SAID, ALL YOU KNOW, ALL OF OUR PLANNING WORK IS CONTINGENT UPON MARKET REFORM THAT'S GOING ON.
YOU KNOW, HOWARD COTS LOOKING AT CREATING ADDITIONAL CAPACITY, THEY MIGHT DECIDE THAT THEY'RE GONNA CONTRACT, YOU KNOW, WITH SOMEBODY TO BUILD 10,000 MEGAWATTS OF NATURAL GAS SUPPLY ON THE ERCOT MARKET TO BE AVAILABLE ON A RESERVE BASIS.
SO AS THE MARKET'S CHANGING, WE HAVE TO MAKE OUR OWN DECISIONS ABOUT WHAT THAT MEANS FOR OUR GENERATION PORTFOLIO.
SO, SO A LOT OF THOSE DECISIONS AND A LOT OF, YOU KNOW, THE INPUT THAT WE'LL GIVE BACK TO OUR BOARD WILL BE BASED ON HOW WE SEE THE MARKET, YOU KNOW, CHANGING RIGHT NOW, YOU KNOW, OUR RESERVE MARCHING MATCHES THAT OF KOTS.
BUT, UM, BUT AGAIN, YOU KNOW, IF, IF I HAVE TO WORRY ABOUT, YOU KNOW, PLANT GOING DOWN IN THE SUMMERTIME, THEN I MIGHT WANNA PLAN FOR A LITTLE BIT MORE THAN THAT.
AND SO THAT'S JUST A STRATEGIC DECISION AS THE C E O OF C P S ENERGY THAT I'M, THAT I'M GONNA HAVE TO MAKE, YOU KNOW, IN CONSULTATION WITH OUR BOARD TO ENSURE THAT WE HAVE THE APPROPRIATE LEVEL OF BACKUP, YOU KNOW, TO, TO REPLACE ANYTHING THAT, THAT WE MIGHT LOSE.
SO, SO WE'RE, WE'RE GOING THROUGH A PLANNING PROCESS.
THAT PLANNING PROCESS IS BASED ON A MOMENT IN TIME, YOU KNOW, AGAIN, WE'VE GOT A LEGISLATURE COME SET SESSION COMING UP.
ERCOT IS IN THE MIDDLE OF PHASE TWO OF THEIR MARKET REFORMS THAT WILL, YOU KNOW, KIND OF IMPACT WHAT THE VALUE OF OUR PORTFOLIO IS.
SO, SO ALL OF, YOU KNOW, THOSE CON THESE, THIS CONVERSATION WILL CONTINUE AS THOSE CHANGES ARE BEING MADE.
I'LL, I'LL JUST WRAP UP BY, BY SAYING TWO THINGS, UH, CHAIR NUMBER ONE, I THINK WHENEVER WE TALK ABOUT INTERMITTENCY AND, UM, AND RENEWABLES, UH, YOU SAID DISPATCHABLE HELPS WITH THAT AND SO DOES STORAGE.
AND I WOULD LIKE FOR US TO START THINKING ABOUT, SO DOES TIME OF DAY PRICING,
[01:25:01]
UH, HELP WITH THAT? AND I, I JUST DON'T THINK WE CAN ACT LIKE THAT'S AN OPTION THAT DOESN'T EXIST.AND NUMBER TWO, I AM STILL UTTERLY CONFUSED ABOUT WHETHER OR NOT YOU TRUST THE MODELS THAT CHARLES RIVER AND ASSOCIATES ARE DOING.
UM, BECAUSE THOSE, MY UNDERSTANDING IS THAT THE CONDITIONS PROVIDED TO THAT MODEL PROVIDE FOR, UH, THE EXTREME WEATHER EVENTS.
SO I PERHAPS THE, I WOULD LIKE TO POSE AS, AS A SOLUTION IS A SCENARIO IN WHICH, UM, YOU KNOW, YOU, YOU HAVE TO UP THE RESERVE MARGIN TO WHAT YOU'RE SAYING, AND, UM, AT LEAST THAT WAY THE RAC CAN UNDERSTAND IF THIS IS WHAT C P S DOES, BECAUSE THEY MAY, UH, DO THIS, RIGHT, THE BOARD OR CO MAY CHOOSE A, A LARGER RESERVE MARGIN.
THESE ARE THE OUTCOMES THAT WE CAN EXPECT.
THAT WAY AT LEAST THEY CAN MOVE FORWARD WITH AN INFORMED DECISION.
I FEEL THAT WITHOUT THAT SCENARIO, KNOWING THAT, THAT THE BOARD MAY STILL GO IN THAT DIRECTION, UNDERMINES THE WORK OF, OF THAT COUNCILWOMAN.
I I, I HAVE A LOT OF, I HAVE ALL THE CONFIDENCE THAT WE'RE DOING THE MODELING WORK WE NEED TO DO, AND THE RACK HAS TO HAVE CONFIDENCE IN THE PROCESS OR ELSE WE'RE GONNA FIND OURSELVES WHERE WE WERE WITH, WITH THE WHOLE STEP CONVERSATION.
SO I BELIEVE THAT WE'RE TAKING THESE EXTREMITIES, UH, INTO ACCOUNT, UM, YOU KNOW, AND, YOU KNOW, I THINK IT'S GOOD INPUT AND WE, WE'LL TAKE IT BACK AND MAKE SURE WE'VE, WE'VE DONE THE APPROPRIATE STRESS TESTING, UH, THAT WE NEED TO DO, WHICH IS WHAT I'M HEARING FROM YOU.
SO, WE'LL, WE'LL, WE'LL MAKE SURE THAT, THAT WE TAKE THAT INTO ACCOUNT.
RUDY, I'M GONNA ASK YOU, UM, JUST TO REASSURE MYSELF TOO, I PRESUME ALL THIS MODELING IS NOT BASED ON A HUNDRED PERCENT, UH, A HUNDRED PERCENT OF THE TIME.
I'M SURE IT'S BASED ON, UH, ON THE AMOUNT OF ENERGY THAT CAN PRODUCE AT A CERTAIN AMOUNT.
MAYBE IT'S 80%, 90%, 80 OR 90% OF THE TIME, BECAUSE YOU'RE NOT ALWAYS GONNA HAVE EVERYTHING RUNNING.
YOU NEED TO ANTICIPATE THINGS THAT ARE BROKEN DOWN.
YOU NEED TO ANTICIPATE SHORTAGES AND FUEL AND THINGS LIKE THAT.
SO IN, IN THESE PORTFOLIOS, ARE THERE SIGNIFICANT PERCENTAGES, UH, OF THE TIME THAT EVERYTHING'S ONLINE AND A AND A PERCENTAGE OF THE TIME THAT, UH, YOU KNOW, THERE'S GONNA BE THINGS THAT ARE GONNA BE DISRUPTING THE SERVICE AND STUFF.
WIND, SOLAR, YOU KNOW, BASE LOAD, ALL HAVE PARTICULAR PROFILES THAT SUGGEST HOW MUCH THEY'RE AVAILABLE, YOU KNOW, BASED ON HISTORICAL, YOU KNOW, ACTUAL, YOU KNOW, EXPERIENCE THAT WE HAVE WITH OUR PORTFOLIO.
SO HOW OUR PORTFOLIO HAS PERFORMED OVER TIME IS ABSOLUTELY A, AN ELEMENT OF, OF HOW WE LOOK AT THE WORLD.
UH, I THINK NOW THAT WE'VE, UH, ENDED THE DISCUSSION ON THAT, AND WE'RE GONNA MOVE ON TO, I BELIEVE IT'S ITEM NUMBER THREE, AND THIS IS ABOUT THE STEP PROGRAM, AND IT'S AN UPDATE, UH, TO OUR COMMITTEE ON, UH, HOW THE STEP PROGRAM, UH, IS MOVING FORWARD.
I THINK IT'S ACTUALLY CALLED THE ENERGY ON, UH, C P S ENERGY IS GONNA TALK ABOUT ENERGY EFFICIENCY AND CONSERVATION PROGRAM.
UH, AND I, I AM HERE TO PROVIDE AN UPDATE ON OUR, UH, NEW STEP PROGRAM, UH, WHICH WE ARE CALLING OUR SUSTAINABLE TOMORROW ENERGY PLAN.
UM, AND, UH, WE ARE TWO MONTHS INTO THE NEW PROGRAM, SO APPRECIATE THE OPPORTUNITY TO, TO UPDATE YOU ON WHERE WE ARE.
UH, IF WE GO TO THE NEXT SLIDE, UH, WE'LL TALK A LITTLE BIT ABOUT THE GOALS.
UH, JUST A REMINDER ON ON THE GOALS THAT WERE ESTABLISHED FOR THE NEW PLAN, UH, SOME OF OUR RECENT ACTIVITIES, UH, WE'LL TALK ABOUT HIGHLIGHTS AND, AND THE DASHBOARD FOR THE PROGRAM.
UH, WE'LL DIVE INTO A FEW PROGRAM UPDATES, ESPECIALLY FOCUSED ON THE, UH, UH, PORTIONS WHERE WE ARE TRYING TO, UH, IN, IN INCREASE THE, THE OUTREACH TO, UH, UNDERSERVED AREAS, UH, THROUGH OUR PROGRAMS. AND THEN WE'LL TALK ABOUT SOME OF THE NEW THINGS THAT WE ARE WORKING ON AS WE COMMITTED TO WHEN WE WERE, UH, HAVING THE DISCUSSIONS SEVERAL MONTHS AGO.
UH, SO IF WE GO TO THE NEXT SLIDE, UH, JUST A REMINDER ON THE APPROVED, UH, PROGRAM, AGAIN, THIS IS THE SUSTAINABLE TOMORROW ENERGY PLAN.
UH, THIS TOOK EFFECT ON AUGUST 1ST.
UH, THE, THE, UH, THE OLD PROGRAM, UH, SAVE FOR TOMORROW ENERGY PLAN, UH, EXPIRED ON JULY 31ST, UH, WHICH WAS THE REASON WE WERE PUSHING, UH, TO, TO GET THIS IN PLACE.
UH, AND, UH, AND, AND OF COURSE, WE HAVE BROADENED OUR GOALS.
UH, WE'VE LISTED THE FIVE THERE, UH, FROM DEMAND MANAGEMENT, BILL SAVINGS FOR CUSTOMERS, ADDRESSING EQUITY, UH, INNOVATION, AND THEN EMISSIONS REDUCTION.
SO WE ARE FOCUSED ON ACHIEVING ALL OF THOSE OBJECTIVES, UH, AND WE'RE BEING MEASURED BY METRICS THAT, UH, THAT TOUCH ON EACH ONE OF THOSE.
UH, SO WE'VE GOT 410 MEGAWATTS OF INCREMENTAL DEMAND REDUCTION.
WE'RE TARGETING OVER FIVE YEARS, UH, 1% ENERGY SAVINGS FOR CUSTOMERS.
UH, WE HAVE WEATHERIZATION COMMITMENTS, UH, THE, UH, FUEL AND CAPACITY, COST SAVINGS, AND THEN, OF COURSE, AVOIDED CARBON.
SO, UH, WE WILL TRACK AND MEASURE ALL OF THOSE, UH, METRICS AS WE GO.
UH, AND, UH, AND, AND FINALLY, I'LL POINT OUT THAT WE HAVE A $350 MILLION BUDGET THAT WE'RE WORKING, UH, TOWARDS.
AND SO WE, WE ARE COMMITTED TO, TO STAYING ON TRACK WITH THAT.
UH, AND THEN, AND THEN WE WILL
[01:30:01]
DO A CHECK-IN AT YEAR THREE, AGAIN, AS, AS COMMITTED TO AND AS AS STIPULATED IN THE ORDINANCE THAT WAS APPROVED.UH, SO IF WE GO TO THE NEXT SLIDE, UH, THESE ARE JUST SOME OF THE HIGHLIGHTS OF ACTIVITIES THAT WE'VE UNDERGONE SINCE THE, UH, PLAN WAS APPROVED BY OUR BOARD AND THE CITY COUNCIL BACK IN JUNE.
UH, AGAIN, THE, THE, THE, THE OLD VERSION EXPIRED IN JULY.
UH, WE'VE SINCE BEEN BACK TO OUR BOARD TWICE TO PUT IN PLACE, UH, THE PIECES THAT WE NEED TO CONTINUE TO DELIVER THE SERVICES THAT ARE BENEFICIAL FOR OUR CUSTOMERS.
WE HAD CONTRACTS THAT WERE EXPIRING ACROSS THE BOARD, UH, BEING, AS THEY WERE LINED UP WITH THE PREVIOUS PROGRAM.
UH, AND SO WE, WE'VE BEEN IN FRONT OF OUR BOARD TWICE.
THEY APPROVED OUR RESIDENTIAL AND COMMERCIAL EFFICIENCY CONTRACTS.
UH, THEY ALSO APPROVED A ONE YEAR EXTENSION OF OUR WEATHERIZATION CONTRACTS.
SO WE'RE, WE ARE CONTINUING TO WEATHERIZE HOMES.
UH, AND THEN WE, WE ANNOUNCED THE RAMP DOWN OF OUR SOLAR REBATE PROGRAM.
I I'M GONNA TALK A LITTLE BIT MORE ABOUT THAT IN A, IN A, IN ONE OF THE NEXT SLIDES.
UH, BUT, UH, WE, WE TOOK THE, UH, UH, WE TOOK THE REQUEST.
THE COUNCIL HAD ASKED US TO MAKE SURE YOU, YOU ANNOUNCE THAT AND GIVE FOLKS THE CHANCE TO, TO SUBMIT THEIR PROJECTS WITH, WITH, UH, ENOUGH LEAD TIME TO BE ABLE TO COMPLETE THOSE.
SO WE DID ANNOUNCE A TIMELINE AND, AND WE'VE, UH, PUBLICIZED THAT BROADLY.
AGAIN, I'LL TALK ABOUT THAT HERE IN A MINUTE.
UH, AND THEN WE HAVE AN R F P OUT, UH, RIGHT NOW FOR THE, UH, MEASUREMENT AND VERIFICATION.
UH, AGAIN, THE, THE PREVIOUS CONTRACT WITH OUR, WITH OUR VENDOR EXPIRED ON JULY 31ST.
SO WE ARE IN THE PROCESS OF PUTTING IN PLACE THE AGREEMENT FOR, FOR THE FUTURE, UH, ANNUAL REPORTS THAT WE WILL CONTINUE TO PRODUCE FOR, FOR THE CITY.
UH, IF WE GO TO THE NEXT SLIDE, UH, THIS IS JUST A, A HIGH LEVEL DASHBOARD.
AGAIN, WE HAVE TWO MONTHS OF, OF, OF DATA TO REPORT HERE.
UH, THERE WILL BE MORE TO COME, UH, BUT, UH, SO FAR TWO MONTHS IN, WE HAVE 24 MEGAWATTS OF INCREMENTAL DEMAND REDUCTION.
THAT'S AGAINST A 410 MEGAWATT GOAL.
UH, MOST OF THAT IS COMING FROM ENERGY EFFICIENCY, UH, SOLAR REBATES IN OUR DEMAND RESPONSE PROGRAM.
UH, WE'RE TRACKING ENERGY SAVINGS AGAIN, UH, OUR WEATHERIZATION PROGRAM.
WE HAD A SHORT PAUSE WHILE WE WERE WORKING TO GET OUR BOARD, UH, CONTRACT EXTENDED.
UH, BUT WE'RE, WE'RE BACK UP AND RUNNING.
AND WE'VE, THIS NUMBER IS ACTUALLY OVER 200 NOW.
WE'VE WEATHERIZED OVER 200 HOMES, UH, SINGLE FAMILY HOMES, UH, IN, IN THE, SINCE THE, SINCE THE NEW PROGRAM TOOK OVER.
AND, AND WE'VE SPENT 9.3 MILLION OUT OF THE 350 MILLION THAT WAS APPROVED.
UH, SO WE'LL CONTINUE TO REPORT THIS.
WE'RE TRACKING THIS INTERNALLY.
YOU KNOW, WE WILL PUBLISH THIS MONTHLY AND, AND, AND MAKE SURE THAT EVERYONE KNOWS EXACTLY WHERE WE, WHERE WE ARE TRACKING.
UM, IF WE GO TO THE NEXT SLIDE, JUST WANNA HIGHLIGHT A COUPLE OF THE PROGRAMS. UH, YOU KNOW, ENERGY EFFICIENCY.
UH, THIS IS, THIS IS THE, THE, THE, THE MOST EFFECTIVE MEANS FOR CUSTOMERS TO SAVE ON THEIR, ON THEIR BILL, RIGHT? IS, IS DIRECTLY REDUCING THEIR ENERGY USAGE.
UH, WE, WE HAVE A FULL SLATE OF PROGRAMS THAT ARE OPERATIONAL.
UH, JUST WANNA HIGHLIGHT A COUPLE OF THE LOW AND NO COST PROGRAMS. THESE ARE THE ONES WHERE, AGAIN, WE'RE DOING OUTREACH TO UNDERSERVED SEGMENTS OF OUR COMMUNITY WHERE COST MAY BE A BARRIER TO PARTICIPATION.
UH, SO THE BIGGEST QUESTION WE ALWAYS GET WHEN WE'RE OUT IN PUBLIC IS, YOU KNOW, HOW DO I GET STARTED? WHAT, WHAT CAN I DO? AND SO WE HAVE A HOME ENERGY ASSESSMENT, WHICH IS FREE, UH, WHERE WE WILL GO OUT TO A CUSTOMER'S HOME, WALK THROUGH THE HOME WITH THEM.
WE CAN DO THIS, UH, IN PERSON.
UM, AND, UH, AND, AND THEN WE DEVELOP A CUSTOMIZED ENERGY SAVINGS PLAN FOR THAT CUSTOMER.
IT'S WRITTEN, IT'S, IT'S DOCUMENTED, IT'S PROVIDED TO THEM.
IF IT'S AN IN-HOME AUDIT, WE, WE ACTUALLY CHANGE LIGHT BULBS.
WE, WE DO, UH, UH, SOME MEASURES WHILE WE'RE THERE TO TRY TO HELP THEM GET STARTED ON THAT.
UH, WE ALSO HAVE, UH, FREE, UH, TUNEUPS OF AIR CONDITIONING UNITS.
AGAIN, WE KNOW NOT EVERYONE'S ABLE TO REPLACE THEIR UNIT.
UH, SO WE'VE, WE'VE DEVELOPED PROGRAM WHERE WE PROVIDE THIS NO COST SERVICE.
A TECHNICIAN COMES IN, UH, GETS THAT, THAT UNIT WORKING BACK TO, UH, UH, YOU KNOW, UH, UH, THE, THE OPTIMAL, UH, PERFORMANCE, UH, FOR THAT UNIT.
UH, AND, AND WE MEASURE THE SAVINGS.
AND, AND IT'S A SIGNIFICANT, UH, YOU KNOW, AIR CONDITIONING IS ONE OF THE BIGGEST USES OF ENERGY IN A HOME.
SO IT DEFINITELY MAKES A, MAKES A MEANINGFUL DIFFERENCE.
UH, AND THEN LIGHTING DISCOUNTS.
UH, WE, WE ENCOURAGE CUSTOMERS, UH, TO INSTALL LEDS IF THEY HAVEN'T ALREADY.
UH, AND SO WE ARE CONTINUING TO PROMOTE, UH, LIGHTING DISCOUNTS.
WE'RE FOCUSED HERE ON UNDERSERVED AREAS OF OUR COMMUNITY.
UH, SO YOU'LL SEE SOME OF OUR PARTNERS, A DOLLAR TREE, UH, HABITAT FOR HUMANITY, 99 CENTS STORES.
SO WE'RE TRYING TO BRING THE PRODUCT, UH, TO WHERE THE CUSTOMERS ARE SHOPPING AND, AND GIVE THEM AN OPPORTUNITY TO TAKE ADVANTAGE OF DISCOUNTS.
AND THERE'S A PHOTO THERE THAT SHOWS, SHOWS WHAT THAT LOOKS LIKE.
SO IT'S A SIGNIFICANT SAVINGS OPPORTUNITY IF, IF, IF CUSTOMERS NOT ONLY GET THE DISCOUNT ON THE LIGHT BULBS, BUT THEN THE ONGOING ENERGY SAVINGS FROM REPLACING, UH, THE, THE, THE, THE, THE INCANDESCENT LIGHT BULBS.
UH, WE ALSO HAVE NEW OUTREACH CAMPAIGNS.
OUR, OUR MARKETING TEAM HAS, HAS BEEN GREAT.
UH, WE'VE, WE'VE, UH, BASICALLY, UH, HAVE BEGUN TO PROMOTE ALL OF THESE PROGRAMS, TRY TO GET THE WORD OUT TO OUR CUSTOMERS AND, AND TARGET THE, YOU KNOW, OUR RESIDENTIAL AND SMALL BUSINESS CUSTOMERS TO TAKE ADVANTAGE OF THE PROGRAMS. IF WE GO TO THE NEXT SLIDE, UH, DEMAND RESPONSE.
UH, SO YOU'RE FAMILIAR WITH OUR THERMOSTAT PROGRAMS. UH, THESE ARE AGREEMENTS WE HAVE WITH LARGE CUSTOMERS WHO REDUCE, UH, ENERGY ON PEAK DAYS.
[01:35:01]
UH, AS YOU KNOW, WE HAD ONE OF THE HOTTEST SUMMERS, UH, ON RECORD.UH, AND IT REQUIRED A, A UNUSUALLY LARGE NUMBER OF, UH, DEMAND RESPONSE EVENTS THIS SUMMER.
THE GRAPH THERE SHOWS YOU, UH, WE HAD 39 DIFFERENT TIMES WHERE WE ASKED CUSTOMERS TWO CONSERVE ENERGY.
UH, AND, AND WE GOT GREAT PARTICIPATION, UH, HELPED US SAVE OVER 200 MEGAWATTS ON PEAK DAYS.
UH, AND, UH, AND REALLY, UH, VERY GRATEFUL, UH, APPRECIATIVE OF OUR CUSTOMERS, UH, WHO, WHO DID THAT.
UH, THE REBATES TO THOSE CUSTOMERS ARE NOW, UH, BEING, UH, PREPARED AND WILL BE GOING OUT TO THEM IF THEY HAVEN'T ALREADY RECEIVED IT, THAT THAT WILL BE COMING.
UH, AND SO AGAIN, UH, I THINK IT JUST HIGHLIGHTS THE IMPORTANCE OF THIS RESOURCE THAT WE'VE CREATED, UH, AND ALLOWING US TO HAVE ADDITIONAL LOAD FLEXIBILITY THAT REALLY JUST, UH, IS CRITICAL ON, ON THE HOTTEST DAYS.
YES, SIR, ABSOLUTELY DEMAND RESPONSE ON WEATHERIZATION.
WE, WE OFFER THAT AS AN OPTION TO CUSTOMERS.
WE HAVE A CENTRAL AIR CONDITIONING UNIT WHILE WE'RE THERE.
WE, WE OFFER THEM THAT, THAT THAT THERMOSTAT, UH, ABOUT 40% OF THE CUSTOMERS IN WEATHERIZATION HAVE A CENTRAL AIR CONDITIONING UNIT.
SO IT, NOT EVERYONE WOULD, WOULD BE ABLE TO TAKE ADVANTAGE.
UH, BUT FOR THOSE THAT DO, UH, WE MAKE THAT AVAILABLE TO THEM.
WE DON'T REQUIRE THEM TO, TO, IT'S NOT A, IT'S NOT A MANDATORY, UH, REQUIREMENT.
UH, WE, WE LEAVE IT TO THE CUSTOMER'S CHOICE.
UH, WELL, I ASK RUDY, WHY NOT? IF WE ARE SPENDING THOUSANDS OF DOLLARS TO HELP THEM WEATHERIZE THEIR HOME AND THEY HAVE CENTRAL HEAT IN AIR, WHY DON'T WE MAKE IT A REQUIREMENT SO THAT WE HAVE MORE OF AN OPPORTUNITY TO SAVE ENERGY? I THINK IT'S A, IT'S JUST AN APPROACH WE'VE ALWAYS TAKEN, YOU KNOW, UH, WE'VE GOT A LOT OF SUCCESS IN GETTING FOLKS SIGNED UP, UH, FOR, FOR OUR PROGRAMS, EVEN WHEN THEY'RE OPT IN.
UH, I, YOU KNOW, I THINK THE, THE PERCEPTION FROM CUSTOMERS OF FORCING THEM TO DO ANYTHING, YOU KNOW, I MEAN, THE, THE, THEY PREFER, YOU KNOW, TO HAVE A CHOICE TO DO IT.
SO IT'S JUST A, AN APPROACH WE'VE TAKEN.
UH, YOU KNOW, I GUESS IT'S SOMETHING WE CAN LOOK AT, BUT I WOULDN'T WANNA LOSE THE OPPORTUNITY, OPPORTUNITY TO WEATHERIZE SOMEBODY'S HOME BECAUSE WE'RE GONNA FORCE THEM INTO A PROGRAM THEY DON'T WANT TO BE IN EITHER WAY.
SO WE'D HAVE TO KNOW UPFRONT WHETHER OR NOT THEY'D BE WILLING, YOU KNOW, UH, TO ALLOW US TO, YOU KNOW, TO MOVE THEIR THERMOSTAT UP, UH, YOU KNOW, A DEGREE OR TWO, AND BE WILLING TO ACCEPT, YOU KNOW, THEM SAYING, YOU KNOW WHAT? I DON'T, YOU KNOW, I DON'T TRUST YOU, YOU KNOW, GOVERNMENT OR WHATEVER.
YOU KNOW, YOU GOT SOME PEOPLE OUT THERE IN THAT CATEGORY.
I DON'T, I DON'T WANT YOU TO WEATHERIZE MY HOME IF I'M GONNA BE FORCED TO DO IT.
SO I THINK THERE'S A TRADE OFF THERE, BUT CERTAINLY SOMETHING THAT WE COULD LOOK AT IF, IF WE THINK THAT'S WHAT WE WANNA DO, WELL, I'D LIKE TO SEE US LOOK AT IT.
IF, IF WE ARE OFFERING AT NO COST TO A, A CONSUMER TO SPEND THREE OR FOUR, $5,000 TO UPGRADE THEIR HOME AND SAVE THEM MONEY ON THEIR ENERGY, THEY OUGHT TO BE WILLING TO, UH, ENABLE C P S TO HAVE SOME, UH, YOU KNOW, LEEWAY WITH THEM.
UH, SO I'D, I'D REALLY RECOMMEND THE BOARD GIVE THAT SERIOUS CONSIDERATION.
UH, AND IF SOMEBODY SAYS, NO, I DON'T WANT THAT, WELL, THEN WE DON'T HAVE TO WEATHERIZE THAT HOME.
'CAUSE THERE'S THOUSANDS OUT THERE THAT NEED IT CHAIR, WE CAN ALWAYS SAY NO TO ONE AND GO TO SOMEBODY ELSE WHO'LL SAY, YES.
MAY I DISAGREE WITH YOU? SURE.
I'M, I'M JUST A LITTLE CONCERNED BECAUSE THAT PROGRAM IS ONLY OFFERED TO LOW INCOME RESIDENTS.
AND, UM, WHY WOULD SOMEBODY THAT HAS A HIGHER INCOME BE ABLE TO CHOOSE, BUT SOMEBODY WHO HAS A LOWER INCOME NOT BE ABLE TO CHOOSE TO BE ON THAT DEMAND RESPONSE.
AND THEY MAY HAVE HEALTH REASONS FOR NEEDING THE TEMPERATURES WHERE, WHERE THEY'RE AT TOO.
UM, OR IN THAT CASE, WHY NOT REQUIRE THAT OF EVERYBODY WHO AVAILS THEMSELVES OF THE STEP PROGRAM? THERE ARE OTHER ENERGY EFFICIENCY MEASURES BEYOND THE WEATHERIZATION ONE.
ANYWAY, GO AHEAD AND CONTINUE.
I, I MENTIONED EARLIER SOLAR REBATES.
UH, YOU KNOW, OF COURSE, THIS IS SOMETHING WE HAD A SIGNIFICANT AMOUNT OF TALK, UH, ABOUT EARLIER THIS YEAR.
UH, WE HAVE ANNOUNCED, UH, THE, THE DEADLINE TO SUBMIT, UH, UH, REBATE APPLICATIONS.
UH, AND SO WE, WE HAD A MEETING WITH THE SOLAR INDUSTRY, UH, ON, UH, OCTOBER 3RD.
WE ACTUALLY PUBLICIZED THIS IN THE MIDDLE OF SEPTEMBER.
THEN WE HAD THE MEETING WITH THE SOLAR INDUSTRY TO MAKE SURE EVERYONE, UH, UNDERSTOOD, UH, OPPORTUNITY TO ASK ANY QUESTIONS.
UH, SO IT'S, SO, IT'S WELL KNOWN NOW.
AND, UH, IN FACT, YOU MAY SEE IT IN SOME OF THE ADVERTISING THAT THAT IS OUT THERE NOW.
UH, NOW, JUST WANNA MAKE SURE TO, TO BE CLEAR THAT THAT IS THE DEADLINE TO SUBMIT AN APPLICATION.
UH, THAT DOESN'T MEAN THE SYSTEM HAS TO BE BUILT BY THAT DAY.
IT, IT DOES TAKE UP TO 180 DAYS TO BUILD A SYSTEM.
SO AS LONG AS THE APPLICATION IS, YOU KNOW, IS INTO US, UH, WE WILL, WE WILL, UH, ALLOW 120 DAYS FOR RESIDENTIAL, 180 DAYS FOR COMMERCIAL SYSTEMS TO BE BUILT.
AND WE WILL GRANT EXTENSIONS THERE.
THERE MAY BE TIMES WHERE THERE MAY BE CONSTRUCTION ISSUES OR OTHER HOLDUPS.
AND SO WE WILL, WE WILL, UH, ALLOW FOLKS TO FILE FOR AN EXTENSION IF NEEDED, AND WE'LL, AND WE'LL BE, UH, YOU
[01:40:01]
KNOW, WE'LL BE FAIR ON THAT.UM, WE ARE, UH, CONTINUING SOME SOLAR REBATES, UH, FOR UNDERSERVED SEGMENTS.
SO FOR SMALL BUSINESSES, UH, NONPROFITS AND SCHOOLS, AND FOR LOW INCOME CUSTOMERS, WE WILL CONTINUE TO HAVE A SOLAR REBATE PROGRAM.
AND, AND WE'VE ALSO SHARED THAT WITH THE INDUSTRY AS WELL.
UM, THE GRAPH ON THE RIGHT IS JUST TO SHOW YOU, UH, RUDY REFERENCED EARLIER, WE HAVE ALMOST 300 MEGAWATTS OF SOLAR THAT, UH, CUSTOMERS HAVE INSTALLED ON THEIR ROOFTOP, UH, THAT REPRESENTS 30,000 SYSTEMS THAT HAVE BEEN BUILT.
UH, THE GRAPH HERE JUST SHOWS YOU THAT WE HAVE ABOUT ANOTHER 7,000 SYSTEMS THAT WILL BE BUILT BY THE TIME THIS PROGRAM WRAPS UP.
SOME OF THESE ARE IN THE PIPELINE CURRENTLY, UH, AND SOME OF THESE WE EXPECT WILL BE SUBMITTED OVER THE NEXT TWO MONTHS AS, AS WE GET TO THE DEADLINE.
SO IN TOTAL, WE'LL END UP WITH ABOUT 37,000 SOLAR SYSTEMS THAT WERE FUNDED THROUGH, THROUGH THE, THROUGH THE STEP PROGRAM, EITHER THE PREVIOUS VERSION OR THE NEW, THE NEW VERSION.
IF WE GO TO THE NEXT SLIDE, UH, AS, AS WE'VE MADE THIS TRANSITION, UH, YOU KNOW, ONE OF THE MOST CRITICAL PIECES HAS BEEN TO, TO SHARE WITH THE COMMUNITY, UH, AND WITH IMPORTANT STAKEHOLDERS.
THE FOLKS WHO DO THE WORK ON, WHAT THE PROGRAMS ARE, WHAT THE RULES ARE, WHAT'S DIFFERENT, WHAT'S NEW, UH, AND HOW, YOU KNOW, UH, WHAT THE GOALS ARE, FOR EXAMPLE, IS, HAS BEEN A CRITICAL PIECE OF, OF THE COMMUNICATION.
THIS IS JUST SOME OF THE EXAMPLES OF, OF WHAT WE'VE DONE.
UH, I'LL, I'LL JUST HIGHLIGHT THAT.
AIR CONDITIONING CONTRACTORS ASSOCIATION, FOR EXAMPLE, A CRITICAL AVENUE FOR US TO, TO BE ABLE TO PROVIDE REBATES FOR AIR CONDITIONING.
AND SO WE'VE, WE'VE MET MULTIPLE TIMES WITH THEM.
UH, WE'VE MET WITH MULTI-FAMILY APARTMENT WORKING GROUPS, UH, UH, SOME OF THE SUBCONTRACTORS WHO DO WORK.
AND THEN OF COURSE, WE'VE BEEN OUT IN THE COMMUNITY AT COMMUNITY FAIRS AND, AND, AND AT DIFFERENT EVENTS THAT WE'VE BEEN ABLE TO ORGANIZE, UH, TO CONTINUE TO GET THE WORD OUT.
AND WE HAVE SOME PHOTOS THERE, JUST AS EXAMPLES OF, OF WHERE WE'VE DONE THAT.
UM, IF WE GO TO THE NEXT SLIDE, UH, THIS IS, THIS IS MY LAST SLIDE.
SO AGAIN, THE FOCUS SO FAR HAS BEEN ON THE CONTINUING PROGRAMS, MAKING SURE THOSE ARE IN PLACE.
UH, BUT OF COURSE WE PROMISED TO, TO DO MORE IN DIFFERENT AND NEW THINGS.
AND, AND THIS JUST IS A HIGHLIGHT OF, OF WHAT THOSE ARE.
WHAT WE'RE FOCUSED ON RIGHT NOW IS OUR EQUITY PROGRAMS. SO THAT'S THE WEATHERIZATION.
UH, WE'VE TALKED ABOUT REDESIGNING THAT PROGRAM TO GET MORE IMPACT, UH, MORE BENEFIT FOR CUSTOMERS AS WELL AS FOR THE SUBCONTRACTORS WHO PARTICIPATE IN THE PROGRAM.
UH, AND SO WE ARE DEVELOPING AN R F P.
THE BOARD APPROVED A ONE YEAR CONTRACT, WHICH GIVES US TIME TO, TO GET THIS R F P ON THE ROAD AND THEN, AND THEN BRING, BRING IN THE NEW DESIGN AND GET THAT STOOD UP.
UH, WE TALKED A LOT ABOUT MULTI-FAMILY AND, AND WE KNOW THAT WE HAVE A NEED WITH RENTERS TO BE ABLE TO PROVIDE WEATHERIZATION SERVICES.
AND SO WE ARE DESIGNING THIS PROGRAM.
UM, WE'VE BEEN MEETING WITH MULTI-FAMILY ORGANIZATIONS, THE FOLKS WHO RUN, UH, THESE, UH, THESE PROPERTIES.
UH, WE HAVE SOME DESIGN CONCEPTS THAT WE'VE BEEN, UH, ASKING THEM FOR FEEDBACK ON.
UH, WE ARE CONTINUING TO DE DEVELOP THAT PROGRAM, AND THAT WILL BE COMING.
SO, UH, WE THINK THIS IS A, THIS IS REALLY GONNA BE A, A, A VERY SIGNIFICANT, UH, NEW OPPORTUNITY, UH, BOTH FOR THE RENTERS, BUT ALSO FOR LOCAL COMPANIES WHO CAN PROVIDE THE SERVICES TO HELP IMPROVE THE EFFICIENCY OF THESE UNITS.
UH, AND THEN FINALLY, UH, BACK TO SOLAR.
UH, AS, AS I MENTIONED EARLIER, WE ARE CONTINUING SOME REBATES FOR UNDERSERVED CUSTOMERS.
UH, WE'RE ALSO PARTNERING WITH THE LOCAL SOLAR INDUSTRY, UH, TO IDENTIFY HOW WE CAN ADDRESS BARRIERS.
UH, WE, WE HAVE, WE ASKED FOR VOLUNTEERS.
WE GOT, UH, ABOUT 20 DIFFERENT COMPANIES WHO STEPPED FORWARD AND SAID THEY WOULD LIKE TO HELP US IDENTIFY STRATEGIES, SOLUTIONS TO, TO, TO MAKE IT FEASIBLE FOR LOW INCOME CUSTOMERS TO INSTALL SOLAR ON THEIR HOUSE OR ON THEIR PROPERTY.
AND WE HAVE OUR FIRST MEETING IN, IN ON THURSDAY.
UH, AND, UH, AND WE WILL, WE WILL REALLY BE, BE HONING IN ON, ON HOW WE CAN CONTINUE TO EXPAND SOLAR ACCESS IN THE COMMUNITY.
UH, SO THAT, THAT'S THE LAST OF MY SLIDES.
I DO WANNA MENTION IN THE APPENDIX, IF MAYBE WE CAN JUST JUMP FORWARD REAL QUICK.
THIS IS THE CURRENT LIST OF PROGRAMS. WE GET THIS QUESTION ALL THE TIME.
WHAT'S AVAILABLE? THESE ARE THE, THESE ARE THE CURRENT PROGRAMS THAT ARE, THAT ARE AVAILABLE TO CUSTOMERS.
AND THEN ON THE NEXT SLIDE, UH, IF FOR CUSTOMERS WHO WANNA PARTICIPATE, UH, YOUR CONSTITUENTS, IF, IF THEY HAVE A QUESTION, WOULD LIKE TO PARTICIPATE IN ANY OF THESE PROGRAMS. WE HAVE THE FULL LIST ON OUR WEBSITE, BUT WE ALSO HAVE PHONE NUMBERS HERE.
AND THEN FOR THE LIGHTING DISCOUNTS, WE'RE, WE'RE PROVIDING THERE, THE, THE, THE MAP THAT SHOWS WHERE, UH, WHAT THE, THE RETAIL OUTLETS ARE LOCATED THAT ARE PROVIDING THOSE, UH, CURRENTLY, UH, FOR CUSTOMERS.
SO THANK YOU AND HAP HAPPY TO ANSWER ANY QUESTIONS.
UM, COULD WE GO BACK AND LOOK AT THAT SLIDE YOU JUST PUT UP ON ALL OF THE PROGRAMS THAT ARE OFFERED? OKAY.
AND I KNOW YOU, UH, HAD SHOWN US, UH, THE DASHBOARD, WHICH, UH, KIND OF LISTED FOUR AREAS, DEMAND SAVINGS, ENERGY SAVINGS, EQUITY BUDGET.
UH, I THINK IT WOULD BE BENEFICIAL FOR THERE TO BE A DASHBOARD THAT WOULD SHOW US HOW ALL OF THESE DIFFERENT
[01:45:01]
BENEFITS ARE BEING USED AND IMPLEMENTED.UH, I THINK IT WOULD BE USEFUL FOR THIS COMMITTEE TO SEE, UH, AND USEFUL FOR THE PUBLIC TO BE ABLE TO SEE A SIMPLE DASHBOARD LIKE THE ONE YOU PRESENTED THAT JUST HAS PERCENTAGES.
DOESN'T REALLY TELL US ANYTHING.
BUT WHEN YOU TALK ABOUT THE NUMBERS OF HOMES AND HOUSEHOLDS AND BUSINESSES THAT ARE TAKING ADVANTAGE OF THIS, THAT TELLS US AND THE COMMUNITY A LOT MORE.
UH, I HAD, BEFORE I SAW THAT LIST, I HAD SAID, YOU KNOW, I'D, I'D WANNA SEE HOME ENERGY ASSESSMENTS AND HVAC TUNEUPS AND RETAIL, UH, LIGHTING, UH, PURCHASES.
AND, UM, WHAT KIND OF OUTREACH WAS THERE TO SMALL BUSINESSES? UH, WHAT SOLAR IMPLEMENTATION UNITS WERE THERE, UH, AND HOUSING AND ON PEOPLE WHO WERE BUYING, UH, SOLAR UNITS ON THE SOLAR FARMS, LIKE TO SEE WHAT ARE THE NEW DEMAND MANAGEMENT INSTALLS? WHAT ARE THE HOMES THAT ARE WEATHERIZED, WHAT IS THE ENERGY SAVED OUT OF ALL OF THIS? SO I THINK IF, IF WE COULD DEVISE, UM, A MORE IN-DEPTH TYPE OF, UH, DASHBOARD TO HELP US SEE THE REAL NUMBERS THAT ALL OF THESE ARE, ARE ATTRACTING PEOPLE TO, I THINK WILL HELP US UNDERSTAND THE REAL VALUE OF THE STEP PROGRAM.
AND IT WOULD HELP EVERYBODY ELSE TOO.
ADMITTEDLY, IT MAY BE A LOT OF WORK.
YOU MIGHT HAVE TO HIRE A WHOLE NEW PERSON TO DO IT, I DON'T KNOW.
BUT I THINK THAT, UH, THIS WOULD BE OF GREAT VALUE TO THE ENTIRE COMMUNITY, SEE A MUCH MORE IN-DEPTH DASHBOARD WITH REAL NUMBERS AND MAYBE PERCENTAGES OF THE GOAL ALSO.
SO THAT'S SOMETHING I, I'D LIKE TO BRING UP.
OTHER THAN THAT, I THINK A LOT OF THE REST OF WHAT YOU, YOU PRESENTED IS VERY VALUABLE.
IT REALLY HELPS US UNDERSTAND MORE.
UH, AND ONE THING I'LL, I'LL SAY TOO, ON DEMAND RESPONSE, UH, AND TELL ME IF I'M WRONG, BUT RUDY, IF, IF WE PUT DEMAND RESPONSE IN A HOME, THE, UH, HOMEOWNER OR THE RESIDENT CAN CHANGE IT BACK TO WHATEVER THEY WANT IF THEY'RE NOT COMFORTABLE.
IS THAT CORRECT? THAT'S CORRECT.
THEY DO HAVE THE OPTION TO OPT OUT, UH, OF AN EVENT, RIGHT? SO AGAIN, THAT'S WHY I THINK WE OUGHT TO HAVE IT PUT IN THERE.
COUNCILMAN, IF I CAN JUST GO BACK TO YOUR POINT ON THE, ON THE DASHBOARD.
I, I, I DO WANNA MAKE SURE TO, TO, TO MAKE SURE THAT I, I, I SAY THIS IS THAT WE HAVE ACCOUNTABILITY REQUIREMENTS IN OUR ORDINANCE, UH, THAT, UH, UH, REQUIRE US TO PROVIDE ALL OF THE DATA YOU TALKED ABOUT.
SO WE WILL CONTINUE TO PROVIDE QUARTERLY AND ANNUAL REPORTS WITH ALL OF THE DETAIL.
UH, BUT, BUT I THINK YOUR, YOUR LARGER POINT IS YOU WANT TO, YOU WANNA MAKE SURE THAT'S ACCESSIBLE AND EASY TO VIEW.
AND, AND SO REALLY A DASHBOARD IS SOMETHING THAT WE, RUDY, HAS ASKED US TO, TO MAKE SURE THAT WE, WE MAKE IT MORE ACCESSIBLE TO PEOPLE.
SO WE WILL BE WORKING ON THAT AND, UH, AND WE'LL COME BACK WITH, UH, WITH A, WITH A MORE ACCESSIBLE VIEW FOR FOLKS TO SEE EXACTLY THE DATA YOU'RE ASKING ABOUT.
UH, COUNCILMAN RO GARCIA, THANK YOU, CHAIR.
UM, AND THANK YOU FOR THE PRESENTATION, FOR THE PRESENTATION.
I'VE SPOKEN BEFORE ON, ON MY CONCERNS IN PARTICULAR WITH THE PROGRAM AND PRIMARILY WITH SERVICES FOR LOWER INCOME HOUSEHOLDS.
AND I THINK THAT WE ARE ON A GOOD START.
I DO STILL HAVE SOME QUESTIONS THOUGH, AND, UM, I, I DID WANT TO, UH, CAUTION US, RIGHT? AS WE THINK ABOUT, UM, ASKING PEOPLE TO, TO BE ON THIS, A LOT OF THE RESIDENTS THAT I REPRESENT DON'T HAVE WIFI.
AND SO AGAIN, WE WOULD BE CREATING THAT BARRIER FOR THEM, OR, OR IT MIGHT SEEM UNFAIR THAT THEY CAN'T PARTICIPATE IN THIS PROGRAM.
DO YOU KNOW HOW MANY OF YOUR EMPLOYEES, UH, PARTICIPATE IN THE DEMAND RESPONSE PROGRAM? OR HOW ARE YOU PITCHING IT TO, TO YOUR C P S EMPLOYEES? SO WE DO PROMOTE OUR PROGRAMS, UH, FOR, BECAUSE OF COURSE MANY OF OUR EMPLOYEES ARE CUSTOMERS MM-HMM.
UH, I DON'T HAVE AN EXACT PERCENTAGE, BUT I, I WILL TELL YOU THAT THAT HAS BEEN A FOCUS OF OUR INTERNAL COMMUNICATIONS IS TO PROMOTE OUR SAVINGS OPPORTUNITIES.
SO MAYBE BEN, THAT MIGHT BE SOMETHING THAT WE PROMOTE HERE WITH OUR EMPLOYEES AS WELL.
AND I'M, I'M SURE, UM, MY COLLEAGUES, UH, I VOLUNTEERED FOR THE SAWS ONE, SO I GOT A CONSULTATION ACTUALLY YESTERDAY.
UM, BUT ANYWAY, SO I THINK THAT THERE'S, UM, IF YOU SHOWCASE RIGHT, MORE PEOPLE AND, AND SHOW THE PROCESS OF THEM GOING INTO THE HOME, I THINK IT MAKES IT, UM, A LITTLE LESS, UH, HOW SHOULD I SAY? JUST, UH, WEIRD, RIGHT? AND SO, OH, SO-AND-SO'S DOING IT, AND I SEE THEM DOING IT, AND I SEE THE CONSULTATION.
AND SO ANYWAY, JUST, JUST WONDERING ABOUT, AND I'LL MENTION IF, IF THERE ARE EMPLOYEE EVENTS WHERE THEY COME TOGETHER, WE HAVE, YOU KNOW, WE, WE GO OUT AND DO COMMUNITY EVENTS ALL THE TIME, WE CAN SET UP A TABLE AND, AND ENCOURAGE FOLKS TO SIGN UP RIGHT THERE.
BUT I THINK IF I WOULD SAY LIKE, COUNCILMAN COURAGE, GETTING THE CONSULTATION AND THEM SETTING HIS THERMOSTAT AND YOU KNOW, OH, LOOK, WE'LL SEE.
SO, OR, OR WHOEVER, RIGHT? LIKE SOMEONE THAT I KNOW, I'M LIKE, OH, WELL HE DOES IT RIGHT OR SO AND SO DOES IT.
AND SO, SO ANYWAY, I'M, I'M, I'M, I'M JUST ASKING ABOUT THAT BECAUSE THEN MY NEXT QUESTION ON THE NEW OUTREACH CAMPAIGN IS HOW IS
[01:50:01]
THIS BEING PROMOTED? AND SO, UM, AND I'M SORRY I KEEP USING SASS, RIGHT? BUT THIS WEEKEND I WENT BLOCK WALKING WITH SAWS AND SO WE LEFT THE DOOR HANGERS.I KNOW YOU ALL HAVE DOOR HANGERS AS WELL.
UM, BUT HOW ARE YOU ALL, UH, USING OTHER METHODS? SO, UM, PSAS WITH UNIVISION OR WITH THE MUNDO FOR SPANISH SPEAKING RESIDENTS IN PARTICULAR, UM, UH, T P R, HOW ARE YOU WORKING WITH K L R N P B S? SO, SO TELL ME A LITTLE BIT MORE.
YEAH, SO, AND THAT ACTUALLY THE FULL PLAN IS A WORK IN PROGRESS RIGHT NOW.
THIS IS MORE OF LIKE A SOFT LAUNCH.
UM, AND AS, AS WE MENTIONED TOO, STEP ITSELF IS NOW A SUSTAINABLE TOMORROW ENERGY PLAN.
SO THERE IS WORK WE NEED TO DO TO BUILD THAT BRAND AND THAT BRAND RECOGNITION.
AND WE WILL TAKE YOU UP ON RECORDING YOU ALL, GETTING YOUR ENERGY ASSESSMENTS IN YOUR HOMES AND SHARE THOSE AS WELL.
SO WE WILL MAKE SURE TO MAKE WE PACKAGE EVERYTHING AND GIVE THAT TO YOU ALL.
UH, WE'LL SHARE INFORMATION THAT YOU ALL CAN SHARE IN YOUR EMPLOYEE NEWSLETTERS.
I THINK I JUST VOLUNTEERED ON MY COLLEAGUES.
UM, SO ON SLIDE SIX, UM, YOU, I'M SHORT, SO THERE'S NO WAY I COULD READ THE, THE C P S THING UP THERE NEXT TO THE 97 SENSE THING.
UM, BUT THEN ALSO A LOT OF OUR, MY RESIDENTS ARE ELDERLY AND THEY HAVE HARD TIME READING.
UM, I DON'T KNOW IF THERE'S A BETTER STRATEGY FOR THAT.
UH, BUT, UH, I, I FEEL BAD THAT THERE MAYBE YOU ALL AREN'T GETTING THE, I GUESS, INFORMATION THAT, THAT YOU ALL ARE INTENDING TO BY PLACING THAT UP THERE.
ARE YOU CONCERNED IT'S TOO HIGH? UHHUH
LET ME, I'LL TAKE THAT BACK AND, OKAY.
UH, POINT OF SALE, THAT'S WHAT IT'S CALLED IN MARKETING, SO, RIGHT, RIGHT.
BUT LET, LET US TAKE THAT BACK AND MAKE SURE THAT IT'S VISIBLE FOR EVERYBODY.
UM, THE OTHER THING THAT I WANTED TO ASK ABOUT THAT IS, I DON'T SEE H E B ON THERE.
WE HAVE PARTNERED WITH HB IN IN THE PAST, UH, IN THIS CASE, UH, WE'VE REALLY TRIED TO FOCUS IN ON, ON, UH, STORES WHERE WE THINK, UH, WE CAN GET, UH, PENETRATION IN, IN UNDERSERVED AREAS.
UH, I DON'T KNOW THE EXACT STATUS ON THE H E B PARTNERSHIP.
UH, AT ONE TIME WE DID MILLIONS OF LIGHT BULBS WITH, WITH H E B, UH, BUT I, I CAN GO BACK AND CHECK ON THAT.
MY H E B ON ZAMORA IN DISTRICT FOUR IS THE HIGHEST, UM, UH, PRODUCING H E B IN SAN ANTONIO, OR WAS AT ONE POINT.
AND THEN, UM, ALSO ON THE SOLAR, THE CONTINUING REBATES FOR UNDERSERVED SEGMENTS, UH, CAN YOU MAYBE JUST SEND ME A CHART OF WHAT UNDERSERVED SEGMENTS YOU'RE TARGETING? AND THIS IS FOR THE SOLAR REBATES.
UH, WELL, I THINK WE'VE LISTED THEM THERE ON THE, IF WE GO FORWARD TWO SLOTS MM-HMM.
UH, SO A SMALL BUSINESS THAT INSTALLS A SYSTEM LESS THAN A HUNDRED KW WOULD QUALIFY.
SO THOSE ARE THE UNDERSERVED SEGMENTS.
SO YOU DON'T HAVE ANYTHING NECESSARILY FOR CUSTOMERS IN UNDERSERVED AREAS? NO, WE DO HAVE, FOR LOW, LOW INCOME CUSTOMERS, WE ARE, AGAIN, WORKING WITH THE SOLAR INDUSTRY OKAY.
TO PUT TOGETHER A PROGRAM TO HELP CUSTOMERS, UH, THAT WOULD BE UNDERSERVED CUSTOMERS.
DOES THAT INCLUDE FINANCING? THAT'S ONE OF THE BIGGEST CHALLENGES WE HAVE TO TACKLE.
AND SO IS THERE AN R F P FOR WHO'S HANDLING THE FINANCING ON THAT? HOW DOES THAT GET HANDLED? WE'RE, WE'RE NOT, WE'RE NOT THERE YET.
WHAT WE'RE DOING IS, IS PULLING TOGETHER A GROUP OF INDUSTRY EXPERTS TO HELP US DEVELOP SOLUTIONS FINANCING IS, IS ONE OF THE BIGGEST HURDLES THAT WE HAVE TO ADDRESS.
AND SO WE'LL, WE'LL COME BACK WITH, UH, THOUGHTS ON, ON HOW WE DO THAT.
AND I APPRECIATE THAT YOU ALL ARE DEVELOPING THE R F P WITH EQUITY IN MIND AND, UM, THAT Y'ALL ARE CREATING THE OPPORTUNITIES FOR LOCAL CONTRACTORS.
I THINK THAT I HAVE ASKED IN THE PAST, AND IT'S VERY, UH, I GUESS INDUSTRY SPECIFIC, RIGHT? SO THERE'S ONLY A CERTAIN, UM, COMPANY THAT CAN DO CERTAIN THINGS, BUT I DO THINK THAT IT'S, UH, GREAT THAT YOU ALL HAVE LOCAL CONTRACTORS ON THERE.
SO THOSE ARE ALL MY QUESTIONS AND COMMENTS.
THANK YOU, RICK, FOR THE UPDATE.
I FEEL LIKE EVERY, UH, EVERY TIME WE SPEAK OR WE HEAR FROM YOU, I LEARN SOMETHING NEW ABOUT THE STEP PROGRAM.
UM, REGARDING THE AUDITS THAT ARE DONE IN, IN HOMES, THAT IS AVAILABLE TO EVERYBODY OR ONLY L M I ALONE? NO, THAT IS AVAILABLE TO ANY CUSTOMER.
AND WHAT'S, UM, I GUESS, HOW LONG DOES IT TAKE TO GET ON THE LIST FOR ONE OF THOSE? UH, YEAH, WE CAN BE OUT IN, IN A WEEK OR SO.
UH, SO WE DON'T, UH, RIGHT NOW WE, WE DON'T HAVE A HUGE
UH, WE, WE CAN, UH, UH, CUSTOMERS CAN CALL US AND, UH, AND WE WILL SCHEDULE THEM, UH, HOPEFULLY, YOU KNOW, WITHIN THE, WITHIN A WEEK OR SO.
AND THEN, UH, THE ACTUAL AUDIT ITSELF TAKES, YOU KNOW, ABOUT TWO HOURS, UH, TO COMPLETE.
AND IS THAT BEING DONE BY YOUR WEATHERIZATION SUBCONTRACTOR, OR IS THAT A DIFFERENT CONTRACTOR? NO, WE, UH, WE HAVE A, UH, UH, ENERGY
[01:55:01]
EFFICIENCY, UH, CONTRACTOR, UH, CLEAR RESULT.UH, WHO DOES THOSE, UH, THOSE FOR US.
THEY DO THAT OUT OF A, THEY HAVE A SAN ANTONIO OFFICE AND THEY USE LOCAL STAFF TO, TO DO THOSE AUDITS.
UM, WHAT WOULD BE HELPFUL FOR ME, AND, AND THE REASON I, I AM GLAD TO SEE THIS ITEM COME HERE, UH, WITH AN UPDATE, IS I WOULD LIKE TO KNOW WHERE THE OUTREACH IS BEING DONE AND WHO'S ACTUALLY BEING CONTACTED AND WHO, WHERE THE MONEY IS GOING.
SO WHETHER IT'S, IT'S A HEAT MAP AND ZIP CODES ARE A LITTLE BIT TOO BIG, UH, BECAUSE WE, WE SHARE ZIP CODES, UH, BETWEEN COUNCIL DISTRICTS.
BUT IF YOU COULD, IS THAT SOMETHING THAT YOU COULD DO, FOR INSTANCE, A HEAT MAP OF WHERE THE HOMES HAVE BEEN? OR ACTUALLY 117 WOULDN'T BE A HEAT MAP.
YOU'D JUST PUT DOTS, UH, OUT THERE AND, UM, WHERE THE, THE MONEY IS GOING.
BECAUSE WHAT, WHAT SOME OF US, ESPECIALLY I WAS CONCERNED ABOUT WHEN, WHEN THIS PROGRAM WENT FORWARD, IS THAT, UH, WE WOULDN'T HAVE THE OPPORTUNITY FOR A WHOLE YEAR TO SEE, UH, WHERE IT WAS BEING USED IF WE NEEDED TO SHIFT, UH, OUTREACH STRATEGY.
SO, SO ALONG WITH THAT DASHBOARD, IS THAT SOMETHING YOU CAN DO? YES.
THAT, THAT IS, THAT IS DOABLE.
WE, WE TRACK, UH, CUSTOMER PARTICIPATION AND SO WE CAN PUT TOGETHER, UH, IN THE PAST WE'VE DONE THE DOT MAPS, BUT WE CAN, WE CAN DO HEAT MAPS IF THAT'S, UH, NO, THAT'S GREAT.
AND THEN, UM, SORRY, UH, JUST TO JUMP IN, 'CAUSE SORT OF, I'M GONNA HAVE TO KNOW THAT A LITTLE BIT FROM THE LEGAL SIDE.
THERE'S A WAY TO GET YOU WHAT YOU WANT, BUT WE CAN'T GIVE YOU CUSTOMER INFORMATION.
SO LET ME WORK WITH THE TEAM AND WE'LL FIGURE OUT WHAT WE CAN GET YOU.
YEAH, I'D HAVE TO BE A SUPER FINE RESOLUTION MAP FOR ME TO KNOW EXACTLY WHERE THAT CUSTOMER LIVES
UM, THERE WAS, UM, COULD YOU GO BACK TO ALL THE PROGRAMS THAT YOU OFFER AND WE'LL GET A COPY OF THIS.
UM, WE, IT WASN'T, I AT LEAST IT'S NOT IN MY PRINTED COPY.
UM, WHEN YOU TALK ABOUT RESIDENTIAL ENERGY EFFICIENCY, CAN YOU TELL ME WHAT ARE YOU DOING WHEN IT COMES TO NEW HOME CONSTRUCTION? SO WE HAVE A PROGRAM FOR NEW HOME CONSTRUCTION WHERE IF THE HOUSE IS BUILT 15%, UH, MORE EFFICIENT THAN CODE IS REQUIRED, UH, THEN WE, UH, WE PROVIDE A REBATE, I BELIEVE IT'S A THOUSAND DOLLARS REBATE, UH, TO THE, UH, TO THE, TO THE BUILDER.
UH, WE RUN THIS PROGRAM WITH, IN PARTNERSHIP WITH BILL SAN ANTONIO GREEN.
SO THEY DO THE INTAKE ON THE APPLICATIONS, AND THEN THEY GO OUT AND THEY CERTIFY THAT THE HOME, UH, MEETS THE REQUIREMENTS OF THE 15%.
NOW IT CAN BE 15% OR BETTER, UM, AND SOME ARE, SOME ARE SIGNIFICANTLY MORE THAN THAT.
BUT, UH, BASICALLY THEY WORK WITH THE, THE BUILDERS TO MAKE SURE THAT, UH, YOU KNOW, HOW TO ACHIEVE THAT SAVINGS IS, IS ONE OF THE KEY PARTS.
UH, AND, UH, AND THEN THEY, THEY, THEY WORK COLLABORATIVELY WITH THEM.
AND THEN ONCE THEY INSPECT THE HOME AND APPROVE IT, THEN WE, WE OFFER THE REBATE ON THE BACK END.
SO SINCE THIS IS NOT NECESSARILY A CUSTOMER WHO'S GETTING THIS REBATE, WELL ULTIMATELY, HOPEFULLY THEY, THAT GETS PASSED ON TO THEM.
IS THIS SOMETHING THAT WE CAN KNOW EXACTLY WHERE IT HAPPENS? LIKE, ARE WE NOT GONNA GET A LEGAL NO ON, ON THIS ONE, BUT CUSTOMER SPECIFIC BASIS? NO, BUT NO.
SO IF I WENT FOR NEW HOME CONSTRUCTION, I, I WANNA KNOW WHICH ONES ARE, ARE AT WHICH LEVEL OF EFFICIENCY AND GOT THE, THE REBATE.
YEAH, SO, SO THE, THE REBATE GENERALLY GOES TO THE BUILDER.
SO IT MIGHT BE, YOU KNOW, WHO ARE THE DEVELOPERS, IT MIGHT BE, YOU KNOW, A HUNDRED HOMES IN A NEIGHBORHOOD.
I GUESS THE QUESTION IS, CAN WE PROVIDE THAT LEVEL OF DETAIL? WE'LL FIGURE OUT A WAY TO, OKAY.
CAN I, CAN I ASK KIND OF WHERE, WHAT'S YOUR PERSPECTIVE ON THE REBATE GOING TO THE, TO THE BUILDER? I MEAN, AGAIN, WE WANT BUILDERS TO BUILD AS EFFICIENT HOMES AS POSSIBLE.
YOU KNOW, WHETHER THAT THE REBATE GETS PASSED ON TO THE CUSTOMER, THEY'RE GONNA SAVE OVER TIME.
SO FUNDAMENTALLY, YOU KNOW, I THINK IT'S GOOD FOR BUILDERS TO BUILD BETTER, RIGHT? NOT, I'M NOT ARGUING THAT POINT.
I JUST WANT THE, THE INFORMATION ABOUT WHERE THOSE HOMES ARE, UH, WHO ARE THE BUILDERS THAT ARE DOING THAT, HOW ENERGY EFFICIENT ARE THEY, YOU KNOW, IS IT 15, IS IT 20%? I, I THINK THAT'S GREAT INFORMATION FOR US TO HAVE AND, AND FOR US TO SHARE.
UH, ONE THING I WILL MENTION IS I, I DID HAVE ENERGY EFFICIENCY INSPECTION AUDIT DONE AT MY HOME A COUPLE OF YEARS AGO.
AND NOW I HAVE ALL MY HOUSE, ALL MY LIGHTS ARE CHANGED 'CAUSE UH, IT WAS AN EFFECTIVE VISIT, BUT I WILL SAY IT TOOK A LONG TIME BEFORE THEY COULD COME OUT TO MY HOME.
AND I'M AFRAID THAT, UH, PEOPLE ARE GONNA RUN INTO THE SAME KIND OF FRUSTRATION THAT IT'S A MONTH AFTER THEY SAY THEY WANT IT BEFORE SOMEBODY COMES OUT, OR EVEN LONGER.
SO I HOPE THAT WHOEVER WE'RE WORKING WITH, YOU'LL ASK THEM TO BRING IN ENOUGH EMPLOYEES SO THAT IT CAN BE DONE IN TWO WEEKS OR THREE WEEKS RATHER THAN A MONTH OR SIX WEEKS OR SOMETHING LIKE THAT.
AND, AND TO YOUR POINT, I MEAN, WE DID HAVE A TIME WHERE WE HAD A BACKLOG THAT WAS YEAH, PRETTY SIGNIFICANT WHEN THEY,
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THESE WERE FIRST ROLLED OUT ABOUT THREE OR FOUR YEARS AGO.BUT, UH, TO YOUR POINT, WE, YOU KNOW, WE, WE KNOW WE HAVE TO MANAGE THAT EXPECTATION.
AND, AND WE'LL, WE'LL, WE'LL KEEP AN EYE ON THAT, ON THAT, UH, WAIT LIST.
UH, BUT WE WILL GO AHEAD AND ASK FOR A VERY SHORT BRIEFING ON, UH, THE DEDICATED RESILIENCY, ENERGY EFFICIENCY AND SUSTAINA SUSTAINABILITY FUND.
CAN WE GET ABOUT A FIVE MINUTE REPORT ON ABOUT HOW MANY, UH, PEOPLE HAVE APPLIED AND HOW MUCH OF THE MONEY HAS BEEN DISSEMINATED, UH, ET CETERA, ET CETERA.
SO CHAIRMAN, I, I'LL DO THAT BRIEFING AND I'LL ABBREVIATED, BUT I'LL MAKE IT MORE ABBREVIATED.
UM, SO AS PART OF THE ADOPTED BUDGET FOR FY 2023, WE CREATED THE RESILIENCY, ENERGY EFFICIENCY AND SUSTAINABILITY FUND.
UM, THAT WAS A BUDGET AMENDMENT THAT WAS PROPOSED BY COUNCILWOMAN SANDOVAL AND APPROVED BY THE COUNCIL.
SO WE CREATED THAT FUND AS PART OF OUR BUDGET.
UH, PART OF ITS CREATION WAS TO PUT IN PLACE A DEDICATED SOURCE OF FUNDING.
SO WE'RE USING A PORTION OF OUR CITY PAYMENT FROM C P S ENERGY IN ORDER TO FUND OR PROVIDE THE FUNDING FOR THE FUND.
UM, IT'S RELATED TO THE RECOVERY OF STEP EXPENDITURES.
UM, I WON'T GO THROUGH ALL THE MECHANICS OF THAT, BUT WE HAVE MADE THAT CHANGE IN THE BUDGET.
SO THIS, THIS HAS A DEDICATED FUNDING STREAM NOW IN PLACE.
UH, THE CURRENT RECOVERY FOR US IS ABOUT NINE AND A HALF MILLION DOLLARS.
IT'S GONNA FLUCTUATE A LITTLE BIT BECAUSE IT DEPENDS ON THE LEVEL OF STEP EXPENDITURE.
UM, THE FUND WAS REALLY CREATED TO FOCUS ON FOUR PRIORITY AREAS TO INCLUDE LEVERAGE FUNDING, YOU KNOW, HOW COULD WE, UM, UTILIZE SOME FUNDING TO LEVERAGE OTHER FEDERAL RESOURCES FOR SOME OF THESE PROGRAMS, UH, TO LOOK AT BUSINESS INCENTIVES, UM, INCENTIVIZING CERTAIN, CERTAIN, UH, PARTICIPATION IN, IN ASSOCIATED PROGRAMS SUCH AS, UH, ENERGY BENCHMARKING.
HOW COULD WE FACILITATE MORE LOCAL BUSINESSES GETTING ACCESS TO PACE, FOR EXAMPLE.
UM, ANOTHER PRIORITY WAS URBAN HEAT ISLAND MITIGATION.
YOU KNOW, MAYBE LOOKING AT DOING A PILOT PROGRAM WITH A LOCAL INSTITUTION IN TERMS OF HOW WE COULD REDUCE HEAT IN, UH, THE URBAN CORE.
AND THEN THE LAST CATEGORY WAS SMALL GRANTS TO COMMUNITY ORGANIZATIONS.
SO THOSE WERE THE HIGH LEVEL PRIORITY AREAS THAT WERE IDENTIFIED AS PART OF THE BUDGET, UH, PROCESS.
WE ARE SCHEDULED TO COME BACK TO COUNCIL RIGHT NOW, UH, IN B SESSION ON DECEMBER 14TH, UM, ACTUALLY TO RECEIVE AN UPDATE, UH, FOR THE FULL COUNCIL ON STEP FROM C P S ENERGY.
BUT WE'LL ALSO PLAN ON DOING AN UPDATE ON THIS NEW FUND AT THAT POINT IN TIME.
OUR OFFICE OF OF SUSTAINABILITY IS WORKING ON, UM, I GUESS I'LL CALL IT THE PROGRAM IMPLEMENTATION.
YOU KNOW, KIND OF HOW WE IMPLEMENT THE FUND, HOW WE'RE GONNA USE THE FUND.
I KNOW THERE ARE CONVERSATIONS AND COORDINATION GOING ON WITH COUNCILMAN SANDOVAL AS WELL.
WE'LL CONTINUE THAT AND THEN WE'LL BRING STAFF RECOMMENDATIONS FORWARD ON THE 14TH IN TERMS OF HOW WE THINK WE SHOULD MOVE FORWARD.
UM, SO WITH THAT, THAT CONCLUDES MY BRIEFING.
I DON'T KNOW IF COUNCILMAN SANDOVAL, IF I MISSED ANYTHING OR YOU WANT TO ADD ANYTHING? I JUST WANNA CLARIFY, NO FUNDS HAVE BEEN DISPERSED AT THIS POINT.
UM, AND COUNCIL WILL BE BRIEFED BEFORE ANY MONEY IS EXPENDED.
ARE YOU PRETTY SATISFIED WITH THE PROGRESS SO FAR? NO, THERE'S A LOT OF WORK TO DO, JOHN
THANK YOU CHAIR, AND THANK YOU BEN, AND I APPRECIATE, UM, THE FOCUS ON THE FOUR PRIORITY AREAS THAT COUNCILMAN SANDOVAL RECOMMENDED, THE LEVERAGE FUNDING AND THE BUSINESS INCENTIVES, UM, WITH THOSE BOTH, LIKE FOR EXAMPLE, THE BUILD SAN ANTONIO GREEN, UM, THAT THEY TALKED ABOUT TODAY, AND THE ASCENT INCENTIVE FOR THE DEVELOPERS.
IS THAT THE TYPE OF PROGRAM THAT YOU'RE LOOKING AT, FOR INSTANCE, ON THIS? AND THE REASON THAT I'M ASKING IS BECAUSE I WANNA MAKE SURE THAT WE'RE NOT SPENDING OR OVERLAPPING PROGRAMS, RIGHT? SO, UH, BUT THAT WE STILL ACCOMPLISH WHAT WE DO.
SO I'LL, I WILL TAKE THAT INTO ACCOUNT BEFORE WE COME FORWARD.
UH, ONE OF THE CONCEPTS IN THE, IN THE DESIGN OF THE FOUR PRIORITY AREAS WAS NOT TO DUPLICATE THE STEP PROGRAM.
UM, BUT IF WE FIND THAT OR IT'S RECOMMENDED THAT SOMETHING LIKE, YOU KNOW, AN ADDITIONAL A THOUSAND DOLLARS BONUS GETS US, UH, A MUCH BETTER, UH, ENERGY EFFICIENT HOME, I, I THINK WE SHOULD CONSIDER THAT.
BUT, UM, AT THIS POINT, THE IDEA IS TO COMPLIMENT THE STEP OR FILL IN GAPS, BUT NOT DUPLICATE.
AND I APPRECIATE THAT BECAUSE, UM, THE SOLAR READY, RIGHT? AND HOW WE, WE BECOME SOLAR READY.
UM, I, I WOULD LOVE FOR THAT TO BE A CRITICAL PART OF, OF THIS, RIGHT? AND SO THE INCENTIVES TO THAT, AND SO, UM, I HAVE A WHOLE LOT OF OTHER THOUGHTS ABOUT THAT.
BUT THEN ALSO, WELL, LET'S TALK THEN.
UM, BUT THEN ALSO MY APPOINTEE, MR. RE, HAS BEEN MEETING WITH DIFFERENT OFFICES FROM C P SS ENERGY ON HOW STEP COULD EVEN COLLABORATE WITH N H S D, RIGHT.
SO I JUST, UM, I THINK SOMETIMES WE, WE FORGET ABOUT N H SS D, BUT I'M, I'M SURE THAT THEY'RE A PART OF IT, BUT I JUST WANT TO, TO PLUG FOR THEM AS WELL.
OKAY, THAT CONCLUDES OUR DISCUSSION ON ITEM FOUR.
ARE THERE ANY ITEMS FOR FUTURE CONSIDERATION THAT ANY OF THE COMMITTEE MEMBERS WOULD LIKE
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TO BRING UP AT THIS TIME? OKAY.HEARING NONE AND WE ARE ADJOURNED.
THANK YOU EVERYBODY FOR ATTENDING.