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MAYOR, WE DO HAVE A QUORUM PRESENT.
WE'RE, I BELIEVE, UH, THERE'S, THEY'RE TAKING THEIR SEATS NOW.
MAYOR, THERE IS SIX, UH, PRESENT.
SO YOU DO HAVE A QUORUM AND WE CAN START THE PRESENTATION AS SOON AS YOU FINISH CHEWING YOUR TIME.
WELCOME TO OUR CITY COUNCIL SPECIAL MEETING, MEETING, UH, UTILITY BRIEFING.
TODAY, OUR FIRST ITEM AND ONLY ITEM IS OUR C P S ENERGY PRESENTATION.
TURN IT OVER TO OUR CITY MANAGER, ERIC WALSH.
UH, COUNCIL, UH, THIS IS, UH, PART OF OUR ONGOING PROCESS OF, UH, KEEPING THE COUNCIL INFORMED OF THE ACTIVITIES OF OUR CITY OWNED, UH, UTILITIES, UH, C P S AND SAWS.
AND TODAY IS, UH, UH, SAW, I'M SORRY.
TODAY IS C P S, UH, TODAY'S PRESENTATION WE'VE MADE BY PAULA GOLD WILLIAMS, UH, PRESIDENT AND C E O OF C P S ENERGY.
AND WE'LL COVER THREE PRIMARY AREAS.
ONE IS, UM, THEIR COMMUNITY OUTREACH EFFORTS.
TWO, THE PREPARATION AND READINESS FOR THE SUMMER MONTHS, AND THEIR SUMMER MARKETING AND EDUCATION CAMPAIGNS.
SO, WITH THAT, I'LL TURN IT OVER TO PAULA TO KICK US OFF.
I HAVE A LOT OF SLIDES, A LOT OF THINGS GOING ON, BUT I'M GONNA MOVE VERY, VERY QUICKLY AND, UH, TRY TO MAKE SURE THAT THERE IS PLENTY OF TIME FOR YOU TO PICK AND CHOOSE WHAT YOU WOULD LIKE TO TALK ABOUT.
SO, UM, WE GO, LET'S JUST KEEP GOING,
SO I HAVE A LOT OF CATEGORIES, BUT I'M JUST GONNA JUMP RIGHT INTO IT.
UH, THE, THE FACT OF THE MATTER IS, AGAIN, OUR INDUSTRY.
WE'VE, WE'VE BEEN, UM, AROUND FOR 159 YEARS, AND, UH, THE INDUSTRY HASN'T CHANGED A LOT TECHNOLOGICALLY, PARTICULARLY AT THE GENERATION SIDE OF THE, THE BUSINESS.
AND SO WE SEE AND UNDERSTAND THAT THERE'S A LOT OF EVOLUTION HAPPENING.
THERE'S A LOT OF INTEREST IN ENERGY, THERE'S A LOT OF, UH, FROM THE TECHNOLOGY PERSPECTIVE, FROM THE ENVIRONMENTAL PERSPECTIVE, FROM VERY MUCH TRYING TO THINK ABOUT HOW WE CAN BE MORE EFFICIENT IN THE FUTURE.
AND, UM, FOR US, WE ARE VERY, UM, INTERESTED IN TAKING IN THAT INPUT.
WE'RE VERY INTERESTED IN GETTING INPUT FROM OUR PARTNERS, AND A LOT OF THEM ARE ALL OVER THE GLOBE.
AND, BUT WE ALSO VERY MUCH LIKE TO FOCUS ON THE INPUT THAT WE GET, UM, LOCALLY.
SO I JUST WANTED TO HIGHLIGHT THAT RECENTLY, THIS WEEK JUST JUST MATTER, HALF MATTER, UH, FACT, IT HAPPENED TO BE THE SAME WEEK.
WE MET WITH THE EN OUR ENVIRONMENTAL STAKEHOLDERS.
WE HAVE BEEN MEETING WITH OUR ENVIRONMENTAL STAKEHOLDERS FOR PROBABLY OVER FOUR YEARS.
WE TRY TO MEET AT A MINIMUM QUARTERLY.
UM, CHRIS STER, OUR C O O IS THE LEAD ON THAT, BUT HE ALSO MAKES SURE THAT HE'S AVAILABLE TO TALK IN BETWEEN THOSE MEETINGS.
WE THINK THE INPUT THAT WE GET FROM THEM IS VERY HELPFUL.
UM, THERE'S A LOT OF GOOD THINGS THAT WE HAVE TO TALK ABOUT IN THE FUTURE.
WHAT ARE WE GONNA DO IN THE FUTURE? UM, ULTIMATELY, UH, I THINK I SAW MARIO BRAVO HERE.
HE ACTUALLY HEADS THE COMMITTEE FROM THE OTHER SIDE, FROM THE ENVIRONMENTALIST SIDE.
UM, WE ARE GETTING TO THE POINT WHERE, UH, THEY, WE HAVE BEEN ASKED TO KIND OF GENERATE MORE DIALOGUE.
WE, WE'VE BEEN SHARING INFORMATION, THERE'S MORE INFORMATION TO SHARE.
THEY ASKED FOR MORE DIALOGUE, SO WE'RE RETHINKING THOSE MEETINGS.
UM, FOR EXAMPLE, ONE OF THE REQUESTS WAS FOR US TO MEET AT NIGHT.
AND, UH, WE'RE GONNA TRY THAT NEXT MEETING AT NIGHT ALSO TO SEE IF WE CAN GET MORE STAKEHOLDERS AT THAT MEETING.
UM, THIS WAS A, THIS WAS AN EVENT, UH, THAT WE HAD, UM, ACTUALLY COUNCILMAN COURAGE WAS ABLE TO HELP KICK OFF THAT EVENT.
WE DID HAVE A PANEL DISCUSSION.
WE HAD AN ENVIRONMENTAL PERSPECTIVE, THE ENERGY PERSPECTIVE, SOLAR, UM, AND, AND BASICALLY WERE INTERVIEWED BY, UM, UH, THE BREVARD REPORT.
AND SO, UH, IT WAS A GOOD EXCHANGE AND THE COMMUNITY WAS ABLE TO ASK US QUESTIONS.
AND WE GOT TALKED A LOT OF ABOUT COAL AND WHAT HAPPENED TO DELEY AND HOW WE MOVE FORWARD.
I WOULD IMAGINE WE'RE GONNA HAVE MORE CONVERSATIONS LIKE THAT.
I THINK THAT WAS VERY HELPFUL.
UM, PART OF THE IN, UH, ENERGY EVOLUTION WILL INCLUDE CHANGING VEHICLES.
AND SO WE ARE MONITORING HOW THAT IS PROGRESSING.
WE HAVE BEEN WORKING WITH ELECTRIFY AMERICA.
WE HAVE SOME CONVERSATIONS WITH, UH, TESLA, AND I THINK WE'RE GONNA GET, TRY TO ENCOURAGE MORE AND MORE PEOPLE TO HELP PUT IN MORE INFRASTRUCTURE FOR CHARGING STATIONS.
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SOME THINGS, SO WE'RE, WE LOOK FORWARD TO BEING ABLE TO COLLABORATE FROM THAT PERSPECTIVE.UM, ANOTHER PART WHERE WE'RE THINKING ABOUT, PART OF CHANGING THE EVOLUTION OF THE INDUSTRY IS INCREASING THE DIALOGUE AND SUPPORTING THOUGHT LEADERSHIP.
SO WHILE WE WERE VERY HAPPY THAT WHEN THE DTO DELEGATION CAME IN TO VISIT WITH THE CITY OF SAN ANTONIO, WE WERE ABLE TO GET THEM TO PARTICIPATE IN THAT.
WE ALSO HAD SOME MEMBERS FROM AS FAR AS AUSTRALIA, MEMBERS FROM, FROM DIFFERENT PARTS OF THE NATION.
WE ARE NOW ATTRACTING THAT TYPE OF CONVERSATION AND PARTICIPATION IN SAN ANTONIO.
SO HERE ARE A COUPLE OF SLIDES OF THIS ONE.
UH, WE HAVE MULTIPLE PANELS THAT YOU CAN SEE.
UM, ALSO ONE OF OUR SISTER CITIES, UH, HAS EXACT SAME AGE AS WE DO.
NORLANDS ACTUALLY HAS A COUNCILMAN THAT IS VERY ACTIVE AND HAS THAT, CAME TO THAT MEETING AND REALLY KIND OF HELPED SHARE WHAT'S HAPPENING IN THE, IN THE UNITED STATES AND HOW THEY'RE LOOKING AT SMART CITY PROGRESSION, FOR EXAMPLE.
AND THIS IS THE SAMPLE OF THE SLIDE WHERE WE HAD THE C E O OF ANTIA.
UM, ALSO, UM, RUNNING A, A, A HUGE, UH, ENERGY COMPANY.
WHAT WAS INTERESTING, THEY ARE LOOKING AT A LOT OF THE SAME ISSUES, EVEN THOUGH YOU, THEY'RE, IT'S HALFWAY ACROSS THE GLOBE, THEY HAVE THE SAME CHALLENGES THINKING ABOUT HOW ARE THEY GONNA MOVE THEIR ENERGY INDUSTRY ALONG.
NOW, A COUPLE OF HIGHLIGHTS, I WOULD SAY, YOU KNOW, WE HAVE A VERY DIVERSIFIED PORTFOLIO.
WE'RE TRYING TO FIGURE OUT HOW ARE WE GONNA DO WITH CARBON AND THE EMISSIONS.
AND, YOU KNOW, FOR US, WE'RE TAKING IN THE INPUT FROM CAP.
WE'RE THINKING ABOUT THE FLEXIBLE PATH AND REALLY STILL TRYING TO SHAPE AS A COMMUNITY DIALOGUE WHAT TO DO IN THE FUTURE.
AND TALKING TO THE C E O OF ANTIGA, THEIR APPROACH IS THEY'RE GONNA PRIMARILY BE SOLAR AND THEY'RE GONNA BE, UM, GAS.
AND THAT'S THEIR TRANSITIONAL PLAN FOR RIGHT NOW.
THEIR COUNTRY HAS DECIDED TO SUPPORT THAT, TO TAKE OUT NUCLEAR AND TO TAKE OUT COAL AND TO END UP MAKING SURE THAT THE FINANCIAL SUPPORT AROUND THAT IS REALLY A COUNTRY ISSUE.
SO WE CONTINUE TO STUDY HOW THAT PROGRESSES AND HOW THEY WILL MOVE FORWARD.
BUT A VERY INTERESTING DIALOGUE AND A GOOD POINT OF REFERENCE FOR US.
YOU KNOW, UM, WE'VE HAD THE NEW ENERGY ECONOMY FOR OVER FIVE YEARS NOW, AND THIS AGAIN, IS WHERE WE INVITE ENTITIES FROM ACROSS THE GLOBE AND NATION TO COME TO SAN ANTONIO AND NOT ONLY BRING THEIR BUSINESS, BUT BRING JOBS AND SUPPORT ECONOMIC DEVELOPMENT AND SUPPORT EDUCATION.
WHAT'S FASCINATING ABOUT THIS IS, UM, WE ALSO ARE TELLING THEM TO ACTUALLY LAUNCH THEIR BUSINESSES AND GROW THEM OUT OF THE SAN ANTONIO MARKET.
WANTED TO HIGHLIGHT THIS ONE BECAUSE THIS IS A RECENT CONTRACT, UM, WITH SONOMA, MEXICO, WHERE THEY HAVE A BIG CONGLOMERATION AND ARE ABLE TO DO BUSINESS IN THAT COUNTRY.
AND THEY'RE LOOKING TO USE THE MOST OF THE SUPPLY CHAIN FROM THE NEW ENERGY ECONOMY.
FOR THAT, WE LOVE IT BECAUSE IT WAS SELF-GENERATED.
WE DIDN'T, WE DIDN'T PUSH THAT.
THEY'RE PUSHING THAT THEY'RE MOVING THE INDUSTRY ALONG.
THEY'RE REALLY BENEFITING THE LOCAL ECONOMIC DEVELOPMENT WHILE MAKING SURE THAT THEY'RE PART OF THE EN ENERGY, UH, EVOLUTION.
RECENTLY, UM, CHRIS TER, UH, WAS ABLE TO DO AND PRESENT AT THE A COMMITTEE FOR, UH, COUNCILMAN PIAS.
WE VERY MUCH ARE VERY INTERESTED IN THE FOCUS THAT HIS TECHNOLOGY COMMITTEE IS DOING, AND LOOKING AT WHAT WE CAN DO IN THE FUTURE FOCUSED ON NEW TOOLS, NEW RESILIENCY, OP OPPORTUNITIES, THAT KIND OF THING.
AND HERE, HERE ARE SOME THINGS NOW THAT WE MOVE FROM THE, UH, INDUSTRY OUT TO COMMUNITY.
SO, UM, JUST HIGHLIGHTING, WE ARE TRYING OUR BEST TO CONTINUE TO DO ALL TYPES OF OUTREACH IN THE COMMUNITY.
HERE'S AN EXAMPLE WHERE WE HAD THE CUB SCOUTS COME IN TO LEARN A BIT.
THEY CAME IN INTO OUR BOARDROOM, WE TALKED ABOUT BUSINESS.
THEY'RE YOUNG AND THEY'RE, THEY'RE ENERGETIC.
THEY ASKED ALL KINDS OF QUESTIONS, BUT VERY MUCH ARE WE, YOU KNOW, WE SUPPORT THAT.
ONE OF OUR VICE PRESIDENTS IS ACTUALLY A SPONSOR OF THE BOY SCOUTS.
SO WE LOOK AT WAYS THAT WE CAN GET OUR EXECUTIVES INVOLVED BASED UPON THEIR INTERESTS AND THE NEEDS OF THE COMMUNITY.
UM, ABOUT A YEAR AGO, MAYBE A LITTLE OVER A YEAR AGO, WE BOUGHT A BIG, UH, VAN THAT WE USE, UM, AS PART OF OUR SUPPORT TO THE COMMUNITY.
WE'LL GO OUT, WE CAN ACTUALLY DO INTAKE EDUCATION, UM, EXPLAIN TO PEOPLE ABOUT SAFETY AND ALL THE PROGRAMS THAT WE HAVE, BUT IT'S A BIG UNIT AND WE USE IT, UM, AS OFTEN AS WE CAN.
BUT WE DECIDED TO MAKE A, AN INVESTMENT IN A SMALLER VEHICLE THAT WHERE WE CAN DO MORE COMMUNITY OUTREACH, WE CAN GO TO WHERE THE CUSTOMERS ARE AND BE CONVENIENT TO THEM, AND ALSO HAVE OUR TECHNOLOGY AND BE ABLE TO HAVE THOSE MATERIALS THERE, SIGN PEOPLE UP, GET THEM INTO PROGRAMS, AND REALLY BE HELPFUL.
SO THIS IS JUST AN EXPANSION OF THAT PROGRAM THAT WE HAVE.
UM, RECENTLY THE MAYOR SPONSORED THE UNITED NEGRO COLLEGE FUND
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EVENT AND A, A HUGE FUNDRAISER.IT WAS THE BIGGEST FUNDRAISER, UM, LUNCHEON IN THE NATION, AND IT WAS EXTREMELY SUCCESSFUL.
WE, SO WE WERE VERY PROUD TO PARTICIPATE IN THAT.
UM, I'D LIKE TO HIGHLIGHT THIS.
YOU KNOW, YOU SEE EXECUTIVES AND YOU SEE PEOPLE THAT MAKE TIME FOR THE COMMUNITY.
ONE OF OUR, UH, PASSIONS IS CHILDREN AND BEING HELPFUL TO CHILDREN.
WE ACTUALLY HAVE A LITERACY PROGRAM WHERE PEOPLE FROM THE FIELD, OUR TEAM MEMBERS FROM THE FIELD CAN BE OFF OF WORK AND GO TO SCHOOLS AND HELP AND HELP SCHOOL, DIFFERENT SCHOOL AND STUDENTS IN, UH, LEARNING.
BUT WE ALSO HAVE, UM, JUST GOING OUT AND TALKING ABOUT SAFETY AND LETTING, UH, CHILDREN KIND OF TOUCH THE, OUR PERSONAL, UH, UH, PROTECTION EQUIPMENT TO TRY IT ON, GET USED TO IT, ASK THEM QUESTIONS.
IT'S A LOT OF FUN FOR THE KIDS, A LOT OF FUN FOR OUR TEAM MEMBERS.
UM, WE CONTINUE TO SUPPORT ECONOMIC DEVELOPMENT RELATIVE TO THE PIPELINE OF TALENT.
AND SO, RUDY, RUDY GARZA, ONE OF OUR SENIOR VICE PRESIDENTS, UM, SUPPORTED AN EVENT AND WAS OUR REPRESENTATIVE AT THE JOB SHADOWING PROGRAM AT LATA.
I KNOW WE'RE ALL TRYING TO GET MORE AND MORE STUDENTS TO HAVE SUMMER JOBS, SO VERY EXCITED ABOUT THAT.
THESE ARE A COUPLE OF, UH, SLIDES ABOUT OUR PUBLIC INPUT SESSION.
THIS WAS, WE DID THREE HUGE PUBLIC INPUT SESSIONS AT LATA LAST YEAR.
THIS WAS, UH, OUR LAST FISCAL YEAR.
UM, IF YOU GO, WE HAD SOME SLIDES.
WE, I HAD COUNCILWOMAN SANDOVAL DID SHOW UP, AND COUNCILMAN COURAGE WAS ALSO THERE.
AND, UM, WHAT WE HAD IS DOUG MELNICK DID A VERY GOOD PRESENTATION ON CAP.
I TALKED ABOUT THE FLEXIBLE PATH, AND WE WERE ABLE TO GET ADDITIONAL INPUT ON BOTH OF THOSE.
UM, WE CONTINUE TO DO OUR COMMUNITY OUTREACH.
ONE OF THE THINGS THAT HAPPENED, I THINK, THINK AGAIN ABOUT FIVE YEARS AGO AS A COUNCIL, UH, AT THE TIME ASKED US TO MAKE SURE THAT WE ARE GOING OUT AND CONDUCTING FAIRS FOR INFORMATION, PROGRAM ENROLLMENT, THOSE KIND OF THINGS.
SO THIS IS JUST ANOTHER SAMPLE.
WE WILL CONTINUE TO CREATE THAT OUTREACH.
YOU TELL US WHERE YOU WANT US TO GO IN YOUR DISTRICTS, WE WILL BE THERE.
UM, OUR HEADQUARTERS, YOU CAN SEE IT FINALLY HAS STOPPED LOOKING LIKE JUST A BUNCH OF BEAMS. AND NOW WE HAVE THE SIDES COMING UP.
UH, AND RECENTLY COUNCILMAN PERRY WAS ABLE TO MAKE A VISIT, A HARDHAT TOUR OF THAT LOCATION.
ANY COUNCIL MEMBER WHO WOULD LIKE THAT TOUR, PLEASE LET US KNOW, AND WE'D BE GLAD TO ACCOMMODATE THAT.
BUT HERE'S ONE OF THOSE PICTURES.
UM, ADDITIONALLY, WE HAVE, ONCE WE MOVE INTO THE NEW LOCATION, THE CURRENT COMPLEX THAT WE HAVE WILL OF COURSE BE AVAILABLE FOR SALE.
AND WE HAVE OTHER PROPERTIES ACROSS TOWN THAT WE ARE, WE ARE PUTTING UP FOR SALE, AND, UM, THAT IS HELPING US MITIGATE THE COST OF THE BUILDING.
SO THAT MARKETING, UH, LAUNCH HAPPENED RECENTLY, AND WE'RE IN A PERIOD NOW WHERE, UH, INTERESTED BUYERS ARE VERY MUCH, UM, ABLE TO GO OUT AND SEE WHAT'S, WHAT'S AVAILABLE NOW.
IT IS ACTUALLY, UH, ATTRACTING A TREMENDOUS AMOUNT OF ATTENTION GLOBALLY.
UM, IT'S DESIGNATED PART OF IT AS AN OPPORTUNITY ZONE, PARTICULARLY OUR HEADQUARTER CURRENT HEADQUARTERS BUILDING.
SO IT'S EX, IT'S EXCITING TO SEE PEOPLE STARTING TO CALL AND EXPRESS INTEREST FOR, FOR WHAT COULD BE, UM, OUR CURRENT FACILITY.
AND SO IT'S A WIN-WIN FOR THE COMMUNITY.
UM, ALSO WHAT WE, WHAT WE LIKE TO DO IS ALSO MAKE SURE THAT WE PUT IN AND USE TECHNOLOGY.
SO WE ARE REINSTITUTING OUR LIVE CHAT OPPORTUNITIES WITH CUSTOMERS.
WE'RE PUTTING EXECUTIVES AND MANAGERS AVAILABLE TO ANSWER QUESTIONS ONLINE.
THAT IS ALSO AVAILABLE TO, TO OUR COMMUNITY.
UM, THIS IS A GREAT ONE, UM, SHINING CITIES.
UH, WE RECENTLY, WERE HONORED, AGAIN FOR OUR CONTINUED INVESTMENT IN RENEWABLES.
WE HAVE, UH, UTILITY SCALE, PROBABLY OVER 650 MEGAWATTS, UH, TO GET UTILITY SCALE AND DISTRIBUTION, UH, SIDE FOR SOLAR.
UM, BUT THIS ACTUAL AWARD ACTUALLY MEASURES THE SOLAR WITHIN THE CITY PROPER FOR SAN ANTONIO.
AND WE WERE STILL IN THE TOP 10.
WE ARE NUMBER ONE IN THE STATE OF TEXAS.
AND IN THAT ONE, UH, COUNCILMAN SHIRLEY GONZALEZ WAS ABLE TO JOIN US.
SO THAT WAS A REALLY GREAT DAY.
WE ALSO RECENTLY RUN, UH, IN AN INDUSTRY, UH, UM, ORGANIZATION, A RECOGNITION FOR BEING ENVIRONMENTAL CHAMPIONS.
AND, YOU KNOW, THE FOCUS IS ENERGY COMPANIES ACROSS THE GLOBE, IF NOT THE NATION, ARE REALLY TRYING TO FIGURE OUT HOW TO MAKE CHANGES AND IMPROVEMENTS.
UM, VERY MUCH I THINK WE'VE GOTTEN, UM, CREDIT FOR THE D E CLOSURES FOR OUR BIG ENERGY EFFICIENCY AND, AND CONSERVATION PLAN FOR OUR DISTRIBUTED GENERATION, UM, ACTIVITIES.
AND SO THIS WAS, WE, WE WERE GLAD TO DO IT.
WE KNOW OUR JOB IS NOT DONE, BUT IT WAS A GOOD, GOOD MILESTONE AWARD FOR 2019.
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UM, AND THEN OUR CUSTOMER SERVICE FOCUS.I MEAN, I, I THINK WHEN I STARTED COMING TO YOU, UH, ALMOST FOUR YEARS AGO TALKING ABOUT, UM, OUR CUSTOMER SERVICE, WE HAD LOTS OF CHALLENGES.
TECHNICALLY WE WERE TRYING TO PUT IN A NEW, UH, A NEW CUSTOMER, UH, WEB PORTAL.
WE WERE HAVING PROBLEMS WITH OUR PHONE SYSTEMS AND A LOT OF THINGS WEREN'T WORKING RIGHT.
BUT WE PUT A TREMENDOUS AMOUNT OF FOCUS ON ALL OF THAT PLUS TRAINING.
AND SO IT HAS, UH, ENDED UP TO WHERE OUR CUSTOMER SERVICE IS REALLY GETTING TO BE TOP IN THE INDUSTRY.
SO WE HAVE, WE HAVE NOW BEEN ANSWERING, UH, THE PHONE IN 30 SECONDS OVER 90% OF THE TIME, WHICH IS A BIG CHANGE FROM WHERE WE WERE.
WE WERE PROBABLY BELOW 50% OF THE TIME AT ONCE AT ONE POINT IN TIME.
UM, I'D LIKE TO SHARE WITH YOU A COUPLE OF THINGS, UH, THAT, THAT RELATE TO HOW WE OPERATE.
AND OF COURSE, YOU, YOU KNOW, YOU EXPERIENCE THE SAME STORMS, UH, THAT, THAT EVERYONE ELSE DOES.
BUT WHAT I'D LIKE TO HIGHLIGHT IS WHY IT'S NOT ALWAYS CLEAR.
WHAT HAPPENS FOR US IS THAT, UH, LIGHTNING ACTIVITY IS, IS SOMETHING THAT JUST, YOU KNOW, RESONATES BECAUSE IT'S ATTRACTED TO OUR DISTRIBUTION SYSTEMS. AND SO IT CAN ACTUALLY ACT, YOU KNOW, CAUSE DISRUPTION.
IT COULD BRING POWER LINES DOWN.
IT COULD CREATE AN UNSAFE, UM, UH, AREAS AROUND WHERE THAT LIGHTNING HAS STRUCK.
AND HERE'S A COUPLE OF SLIDES THAT I JUST WANTED TO SHARE WITH YOU.
THIS IS SOME DAMAGE THAT WAS DONE RECENTLY THAT WE HAD TO RESTORE.
THIS IS A SITUATION WHERE, UM, UH, UH, THE LINE CAUGHT FIRE AND, UH, WE HAD TO MAKE SURE THAT THE CUSTOMER WAS SAFELY SECURE AND AWAY FROM THAT WHILE WE WERE ABLE TO GET THAT TO SITUATION UNDER CONTROL.
UM, ANOTHER CHALLENGE THOUGH, A LITTLE BIT DIFFERENT, UM, UM, FOR CHALLENGES THAT ARE OPPORTUNITIES, OUR PEOPLE ARE OUT ALL THE TIME, AND THEY, AND MANY TIMES, EVEN FOR THE FIRE DEPARTMENT, UH, WE NEED TO BE THERE BEFORE THE FIRE DEPARTMENT OFTENTIMES GOES IN A BUILDING TO MAKE SURE THAT THE POWER IS APPROPRIATELY CUT OFF.
WE NEED TO MAKE SURE THAT OUR PEOPLE ARE GETTING THINGS DONE SO, UH, THE COMMUNITY CAN, CAN OPERATE, UH, EFFECTIVELY, UH, AS THEY WISH.
WHAT WE HAVE EXPERIENCED, UH, FOR A VERY LONG TIME, AND INTENSELY IT HAPPENED.
WE SAW IT A LOT AROUND, UH, WHEN THE, WHEN THE TORNADOES CAME IN.
A LOT OF PEOPLE ARE NOT DRIVING SAFE WHEN OUR PEOPLE ARE WORKING IN THE WORK AREAS.
AND LAST YEAR WE HAD ONE OF OUR EMPLOYEES HIT JUST IN THE MORNING, CONES OUT WORKING SOMEBODY WENT THROUGH THE CONES AND HIT THEM.
SO IT HAS BEEN A BIG PASSION OF OUR OURS TO, UH, WORK ON GETTING SAFETY DESIGNATIONS FOR OUR EMPLOYEES.
AND SO NOW OUR EMPLOYEES JUST GOT SIGNED THIS WEEK BY THE GOVERNOR, ARE NOW INCLUDED, UM, IN FIRST RESPONDER STATUS.
AND BASICALLY, UH, UH, DRIVERS ARE REQUIRED TO MOVE OVER WHEN THEY SEE OUR, OUR WORKERS IN THE FIELD.
SO WE ARE VERY, VERY EXCITED ABOUT THAT.
WE'RE GONNA PUT TOGETHER OUR OWN CAMPAIGN TO TALK ABOUT SAFETY, TRY TO PARTNER WITH THE CITY ABOUT THAT, AS WELL AS THERE'S THINGS THAT WE CAN DO AT TDOT AND OTHER ENTITIES ACROSS THE STATE.
UM, THE ADVISORY, UH, UM, CITIZENS ADVISORY COMMITTEE THAT WE'VE HAD FOR A VERY LONG TIME.
MOST OF THE MEMBERS OF THE COMMITTEES, UH, 10 OF THE 15, ARE DESIGNATED BY YOU.
UM, AND THEN THE OTHERS ARE AT LARGE MEMBERS.
UM, WE ALSO ENSURE THAT THEY GET UP TO AUSTIN DURING THE LEGISLATIVE SESSION, UM, VERY, YOU KNOW, AND VERY MUCH ARE ABLE TO MEET REPRESENTATIVES, TALK TO THEM ABOUT ENERGY ISSUES, AND REALLY KIND OF MAKE THAT CONNECTION GOING FORWARD.
SO THAT WAS A VERY, UM, SUCCESSFUL VISIT RECENTLY.
UM, THIS IS ANOTHER EXAMPLE OF A FIRST RESPONDER, UH, ISSUE THAT WE DID RECENTLY.
WE GOT A PHONE CALL FROM THE FIRE DEPARTMENT.
UM, ONE OF THE WORKERS THAT WAS WORKING ON A TOWER ACTUALLY BROKE THEIR ARM WHILE THEY WERE UP IN THE AIR AND COULD NOT GET DOWN.
SO WE HAD TO BRING OUR BUCKET TRUCK AND BRING THE, THE WORKER DOWN AND BRING THE FIREFIGHTERS DOWN TO MAKE SURE THAT IT WAS VERY, VERY SAFE.
AND IT WAS A GREAT COLLABORATION WITH THE FIRE DEPARTMENT, AND WE WERE HAPPY TO DO THAT.
OKAY, I'M MOVING ON TO ANOTHER SECTION NOW.
WE'RE GONNA TALK ABOUT ENERGY.
UM, I GOT A COUPLE OF SLIDES HERE AND I'M GONNA TALK ABOUT WHAT, WHAT, UH, POWER LOOKS LIKE ACROSS THE ERCOT MARKET AND THEN WHAT IT LOOKS LIKE FOR US.
SO IF YOU LOOK, UM, THERE HAS BEEN ESCALATING, UH, ENERGY DEMAND IN TEXAS, AND THAT'S TIED TO THE INCREASE IN POPULATION.
UH, THE GROWTH OF PEOPLE MOVING TO TEXAS IS ACTUALLY DRIVING MORE POWER.
NOT, NOT, UH, IT'S A LOGICAL CONCLUSION, BUT, BUT IT IS DEFINITELY HAPPENING.
HERE'S, HERE'S KIND OF AN INTERESTING SLIDE THOUGH.
WHAT HAPPENS IS THE STATE DOES EVERYTHING IT CAN TO MAKE SURE THAT IT, WE HAVE ENOUGH POWER TO SUPPLY ALL OF ALL OF THE PEOPLE IN TEXAS FOR ALL THE NEEDS AT PEAK.
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US, WE HAVE, THE BIGGEST PEAK WE HAVE IS DURING THE SUMMER.COULD BE ANYWHERE FROM JULY TO AUGUST NOR NORMALLY.
UM, WHAT THIS SLIDE SHOWS IS THERE'S A DIFFERENCE.
IT SHOWS SEVERAL THINGS, BUT ONE THING IT SHOWS IS THERE'S A DIFFERENCE IN THE TOTAL CAPACITY OF THE NAME NAMEPLATE AND HOW MUCH ENERGY YOU ACTUALLY GET.
UM, FOR THE MOST PART, YOU CAN GET A GREAT DEAL OF IT.
EVEN, UM, COASTAL WIND IF IT, IF, IF IT'S RUNNING AND TYPICALLY COASTAL WIND IS RUNNING DURING THE HEAT OF THE DAY, YOU'RE GONNA GET THAT POWER.
BUT WE HAVE A LOT OF OUR WIND THAT IS IN CENTRAL TEXAS, AND SO IT PRIMARILY BLOWS AT NIGHT BECAUSE OF THE WIND PATTERN.
SO EVEN THOUGH WE HAVE A LOT OF CAPACITY, IT'S NOT ALL AVAILABLE AT THE PEAK WHEN WE NEED IT.
SO, UM, WHAT THE STATE DOES, AND WHAT WE ALL DO AS OPERATORS IS WE ALSO MEASURE AT THE PEAK HOW MUCH EXCESS CAPACITY REALLY IS AVAILABLE ACROSS THE BOARD.
AND WE CALL THAT EXCESS RESERVE MARGIN.
AND IF YOU LOOK AT THE RED LINE, THE RED LINE SAYS THERE'S A THRESHOLD THAT THE, THAT THE STATE, UH, PARTICULARLY ERCOT THE OPERATOR HAS BEEN ABLE TO DETERMINE IS A REALLY GOOD BUFFER OF SAFETY IN TERMS OF HAVING CAPACITY IN CASE ANOTHER PLANT GOES DOWN OR THERE'S SOME ISSUE IN THE SYSTEM.
AND FOR THE MOST PART, YOU SEE A LOT OF CONSISTENCY ACROSS THAT LINE.
WE'VE BEEN AS HIGH AS 21.8% IN 2010.
UH, BUT THEN IF YOU LOOK AT THE OTHER END OF THE SPECTRUM, YOU'LL SEE THAT, UM, THIS IS PROBABLY OVER THE LAST ALMOST DECADE.
THE, THE, THE SUMMER THAT WE'RE EDGING UP ON IS GONNA, WE'RE GONNA HAVE THE LOWEST LEVEL OF RESERVE MARGIN.
NOW WE HAVE IT, BUT IT IS THE LOWEST LEVEL THAT THE STATE HAS HAD OVER THIS PERIOD.
SO THERE HAVE BEEN A LOT OF CONVERSATIONS ABOUT HOW DO WE REALLY CONTINUE TO DO A LOT OF PREVENTIVE MAINTENANCE, GOOD COMMUNICATION, WORKING BETWEEN ALL OF THE SYSTEM OPERATORS AND, UM, THE, THE ERCOT AND THE P U C BECAUSE WE NEED TO MAKE SURE THAT THERE'S A LOT OF FOCUS ON REALLY PERFORMING WELL THIS SUMMER.
UM, THE ONE THING THAT THAT WE DO AS WELL IS WE, IF WE HAVE A EXTRA HOT DRY SUMMER, THAT WOULD PUT MORE PRESSURE ON THE SYSTEMS. IT'S MORE STRAIN ON THE SYSTEMS AND MORE LIKELIHOOD THAT THERE'LL BE OUTAGES, THE HOTTER AND MORE INTENSE IT IS.
THE INTERESTING NEWS IS ALL THE FORECASTS THAT WE HAVE SAYS IT'S NOT GONNA BE ABNORMALLY HOT, JUST NORMAL TEXAS HOT.
SO WE'RE GONNA HAVE, IT'S JUST GONNA BE MODERATE.
AND THAT'S WHAT WE SEE RIGHT NOW.
WE CONTINUE TO, TO, TO MONITOR THIS.
UM, THE RAIN THAT WE HAVE NOW ACTUALLY CREATES A PATTERN THAT ACTUALLY DOES START TO INDICATE THAT WE'LL, MORE THAN LIKELY HAVE A MODERATELY HOT SUMMER, NOT AN EXTREMELY HOT SUMMER.
UM, AGAIN, JUST SOMETHING AS, UH, KIND OF, UH, PROACTIVE INPUTS THAT WE LOOK AT SO WE CAN THINK ABOUT HOW BEST TO MANAGE THE SYSTEMS. NEXT SLIDE.
SO THEN HERE WE ARE, WE'RE TALKING ABOUT US NOW, WHILE THE STATE IS BELOW IS RIGHT AROUND 7% RESERVE MARGIN, UM, YOU KNOW, WE, AND THE TARGET FOR THE GENERAL THRESHOLD IS ABOUT 13.75%.
WE ACTUALLY HAVE A 19% RESERVE MARGIN, WHICH IS ONE OF THE HEALTHIEST IN THE SYSTEMS. AND THAT'S WHAT HAPPENS TO MUNICIPAL POWER, TYPICALLY HAS HISTORICALLY TRIED TO HAVE A HEALTHY LEVEL OF RESERVE MARGIN FOR THE SUMMER.
AND WE'RE STILL IN GOOD POSITION RIGHT NOW.
I'M NOT GONNA GO OVER THIS SLIDE, BUT THIS ALSO GIVES YOU SOME CONSIDERATION THOUGH.
WE LOOK AT EVERYTHING WE CAN, AGAIN, TO BE FOCUSED ON PREVENTION, TO MAKE SURE THE MAINTENANCE IS UP, IS UP TO SPEED.
AND THEN WHEN YOU GET TO THIS SLIDE, THIS IS AN EXAMPLE OF, YOU KNOW, WORK ACTUALLY HAPPENING INTENSELY BECAUSE WE REALLY MAKE SURE THAT OUR PLANT MAINTENANCE IS UP, UH, EXTENSIVELY.
UH, WHAT YOU SEE, THERE'S, UH, BENNY ETHERIDGE IS ACTUALLY THE HEAD OF OUR POWER GENERATING UNITS, AND HE REPORTS TO CHRIS TER AND CHRIS IS MAKING SURE THAT HE'S VISITING THESE LOCATIONS AND MAKING SURE THAT WE'RE GETTING ALL OUR MAINTENANCE DONE.
WE ARE ALSO, UM, WE HAD A, A, A HUGE CAMPAIGN LAST YEAR.
WE WILL CONTINUE THAT CAMPAIGN THIS YEAR.
WE ARE OUT TALKING ABOUT CONSERVATION AND ASKING PEOPLE TO MAKE SURE THAT IF THEY CAN USE THERMOSTATS, IF THEY CAN MAKE SURE THAT THEY DON'T RUN THEIR AIR CONDITIONINGS HARD, PARTICULARLY AT PEAK, IF THEY CAN PARTICIPATE IN OUR DEMAND RESPONSE PROGRAMS, IF THEY'RE BIG INSTITUTIONS.
ALL OF THOSE THINGS WILL HELP US MANAGE MUCH BETTER THROUGH THE SUMMER.
UM, THIS IS A, THIS IS A THING THAT YOU MAY HAVE SEEN AND WE'RE SUPER EXCITED ABOUT PUTTING DISTRIBUTED.
SO SOLAR INTO OUR SYSTEMS, MEANING LOCALLY WITHIN, UH, WHERE WE LIVE, IS ACTUALLY A HEALTHY PART OF ACTUALLY MANAGING DEMAND.
AND WE RECENTLY, UM, UH, ANNOUNCED SO THAT WE HAVE A NEW FIVE MEGAWATT COMMUNITY SOLAR PROJECT.
THE FIRST TIME WE DID IT, SOLD OUT VERY QUICKLY.
[00:25:01]
HAPPENS IS WE PUT A, A, A FARM, UH, INSIDE THE CITY LIMITS AND PEOPLE CAN GO BUY PANELS AND THOSE PANELS, THEY CAN GET THE CREDIT OF, OF ENERGY OFF OF THOSE PANELS.AND SO, UM, WE'RE EXCITED TO DO THIS.
WE EXPECT TO HAVE MORE COMMUNITY SOLAR OUT THERE.
THIS ONE'S EVEN SPECIAL TOO, BECAUSE IT ACTUALLY IS MORE OF A, A CARPORT COVER, SO IT ACTUALLY SHADES THE CAR AND PROVIDES, UH, OFFSET AND POWER.
SO IT'S A, IT'S A VERY GOOD PROJECT.
UM, JUST WANNA GIVE YOU A LITTLE STATUS.
YOU, YOU KNOW THAT WE HAVE A PROJECT WITH SOUTHWEST RESEARCH INSTITUTE.
WE ARE PUTTING IN, UH, NEW ENERGY STORAGE UNITS AND, UM, AND A SOLAR SYSTEM.
SO IT'S KIND OF EFFECTIVELY A VERY LARGE, UM, MICROGRID.
WE'VE GOT, IT'S SHAPING UP VERY WELL.
AND ANYONE WHO WOULD LIKE, UM, A TOUR OF THAT LOCATION, WE'D BE GLAD TO ACCOMMODATE THAT.
UM, I DID WANNA GIVE YOU A, A STATUS TOO THAT WE, WE CAME UP, UH, WITH THE ENERGY EFFICIENCY AND CONSERVATION PROGRAM CALLED STEP SAVE FOR TOMORROW PROGRAM.
AND, UH, THAT WAS, UH, APPROVED BY THE COUNCIL AROUND THE T UH, 2008 TIMEFRAME.
WHEN WE DID IT AGAIN, WE, IT WAS PRIMARILY A LIGHT BULB PROGRAM.
IT TURNED INTO A WEATHERIZATION SUPPORT PROGRAM, A SOLAR REBATE PROGRAM, ALL TYPES OF PRODUCTS THAT WE CAN DO, WHERE PEOPLE CAN HELP AND CONSERVE ENERGY.
WE HAD PROJECTED THAT THIS PROGRAM, IT WOULD TAKE US THROUGH THE END OF 2020 TO SAVE 771 MEGAWATTS AT A COST OF ABOUT $849 MILLION.
AND IT ALLOWED US TO DEFER OUR INVESTMENT IN INFRASTRUCTURE.
SO IF WE HAD NOT DONE THIS, WE WOULD'VE BUILT ANOTHER PLANT.
AND I OFTEN SAY PROBABLY WOULD'VE BEEN A, A COAL PLANT BECAUSE THAT WAS THE PREVAILING TECHNOLOGY AT THE TIME.
AND SO IT HELPED US NOT DO THAT.
IT HELPED US PAY ATTENTION TO THE, THE EVOLUTION OF TECHNOLOGY.
AND IT ACTUALLY WAS THE PRECURSOR TO THE FLEXIBLE PATH.
'CAUSE IT GAVE US A LOT OF FLEXIBILITY FOR THE FUTURE.
THE REALLY INTERESTING THING ABOUT IT IS THE, THE PROGRAM IS DOING VERY, VERY WELL.
WE BELIEVE THAT WE'RE GOING TO ACTUALLY MEET THE MEGAWATT TARGET THIS YEAR, AND THEN WE'RE GONNA START A DISCUSSION ABOUT WHAT STEP 2.0 MIGHT LOOK LIKE AND ASK FOR COMMUNITY INPUT ON THAT.
THESE ARE SOME OF THE BENEFITS THAT WE HAVE GOTTEN.
AGAIN, I I WOULD HIGHLIGHT, UM, THE, THE LAST ONE OVER THERE, 212 MEGAWATTS OF DEMAND RESPONSE.
AGAIN, THAT'S WHERE WE CAN CONTROL THE THERMOSTAT WORKING WITH AN ENTITY AND REDUCE THE DEMAND OF POWER.
THAT IS ONE OF THE BIGGEST PROGRAMS IN THE NATION.
SO, UM, AS WE LOOK FORWARD TO THINK ABOUT ALL OF THOSE PROGRAMS, AGAIN, WE'RE GOING TO, WE, WE WANNA KEEP THE ONES THAT ARE MOST EFFECTIVE, BUT WE WANNA MAKE SPACE FOR NEW ONES.
AND WE WANNA KNOW WHAT CUSTOMERS THINK REALLY WORKS IN TERMS OF GIVING MORE INCENTIVES FOR THAT.
NOW, THE ONE THING I WILL SAY, AGAIN, THAT'S A COMMUNITY PROGRAM, SO EVERYONE IN THE COMMUNITY PAYS INTO IT.
AND THEN THOSE WHO ARE INTERESTED GO AFTER THE SPECIFIC BENEFITS OF, UH, DIFFERENT ASPECTS OF THE PROGRAM.
SO WE THINK IT'S REALLY GOOD TO HAVE A CONVERSATION ABOUT HOW WE PERFORMED.
WE'LL EXPLAIN THAT AND WE'LL EXPLAIN ALL THE PROGRAMS THAT WE HAVE, AND THEN WE'LL TALK ABOUT WHAT DOES THE FUTURE LOOK LIKE.
LOTS OF SLIDES, LOTS OF STUFF.
SO I AM READY TO TRY TO ANSWER YOUR QUESTIONS.
THANK YOU VERY MUCH, UH, PAULA, FOR THE PRESENTATION.
WE'RE GONNA, UH, DO A LITTLE BIT OF FORMALITY HERE, UH, JUST TO MAKE SURE THAT WE'RE CONDUCTING THE MEETING WITH, UM, OUR PROPER PROTOCOL AND ROLL CALL.
I'M GONNA FIRST ANNOUNCE THAT WE ARE RECONVENED FROM EXECUTIVE SESSION.
NO ACTION WAS TAKEN, AND THE CLERK IS NOW GONNA READ THE ROLL CALL NOW THAT WE HAVE A QUORUM.
COUNCIL MEMBER BROCK HOUSE COUNCIL MEMBER SANDOVAL.
COUNCIL MEMBER COURAGE PRESENT.
AND HERE, MAYOR, WE DO HAVE A QUORUM.
UH, PAULA, THIS IS, UH, A LOT OF, UH, WORK THAT I'VE SEEN AT THE, AT THE BOARD OF DIRECTORS MEETINGS.
SO I'M GONNA MOVE NOW TO COUNCIL COMMENT.
WE'LL START WITH COUNCILMAN COURAGE.
I KNOW THAT, UH, YOUR PRESENTATION COVERED SOME OF THE HIGHLIGHTS OF WHAT YOU'VE BEEN DOING THIS YEAR, AND I WAS GLAD TO SEE, UH, KIND OF ANOTHER EXPLANATION OF WHERE WE ARE ON THE BASIS OF PRODUCING ENERGY.
FOR EXAMPLE, UH, WE STILL HAVE A PRETTY SIGNIFICANT MARGIN OF ENERGY THAT WE CAN PRODUCE WHEN NECESSARY TO HELP MEET OUR NEEDS OR STATE NEEDS IN THE SUMMERTIME, EVEN THOUGH WE'VE CLOSED DOWN THE DELEY PLANS.
UH, AND I THINK THAT'S GOOD NEWS.
UH, I'VE ATTENDED SEVERAL OF YOUR MEETINGS, AS YOU KNOW, AND I RECALL THAT THE, UH, BUDGET MEETING THAT STICKS IN MY MIND WAS INDICATING THAT FOR THIS CURRENT FISCAL YEAR, I BELIEVE YOU
[00:30:01]
WERE ANTICIPATING BEING IN THE BLACK BY ABOUT $2 MILLION, WHICH IS A VERY THIN MARGIN TO BE PROFITABLE, SO TO SPEAK, TO COVER ALL YOUR EXPENSES.UH, AND I WAS WONDERING IF, SINCE THAT CAME OUT, WHICH WAS A FEW MONTHS AGO, IF YOU FIND THAT, UH, C P S IS IN A BETTER FINANCIAL POSITION THAN WAS EXPECTED, OR, UH, ARE THERE DARK CLOUDS AHEAD? WHAT CAN YOU TELL US? UH, SLIGHTLY BETTER.
UH, UH, MY TEAM IS LED BY, MY SENIOR CHIEFS ACTUALLY MEET REGULARLY.
THEY ARE CONTINUING TO LOOK FOR OPPORTUNITIES.
EVERYTHING FROM MAINTENANCE TO RENEGOTIATING CONTRACTS.
MATTER OF FACT, OUR BOARD REQUIRES THAT EVERY MONTH WE COME IN TO TELL THEM WHAT WE'RE DOING.
SO WE ARE, WE ARE, WE ARE CHISELING AWAY.
UM, BUT AT A $2.6 BILLION COMPANY, UH, AS WE'RE CHISELING AWAY, IT'S, IT'S NOT BIG DOLLARS.
WE'RE HUNDREDS OF THOUSANDS OF DOLLARS.
UM, SOMETIMES IN THE MILLIONS.
THE BEST THING WE'VE DONE SINCE WE'VE, UM, HAD THE BUDGET APPROVED IS WE RE-LOOKED AT OUR DEBT PLAN AND WE WERE ABLE TO CAPTURE SOME SAVINGS ON RESTRUCTURING SOME DEBT.
AND SO WE MOVED UP A BIT FROM 2 MILLION TO ABOUT $7 MILLION.
UH, AND THEN WE HAVE QUITE A FEW THINGS IN THE, IN THE PIKE THAT WE CONTINUE TO WORK ON.
SO I WOULDN'T TELL YOU THAT IT'S A BLEAK PICTURE.
WE'RE NOT, UM, READY TO DECLARE DEFEAT
UH, LAST YEAR, JUST AS AN EXAMPLE, LAST YEAR WE WERE, WE WERE CONCERNED ABOUT THE YEAR, AND WE THOUGHT THAT IT WAS GONNA BE MAYBE IN THE 30 MILLION RANGE, WHICH IS VERY TIGHT FROM WHERE WE WERE BEFORE.
AND YOU ALWAYS HAVE RISK BECAUSE SOMETIMES YOUR INVESTMENTS IN THE MAR YOU HAVE TO HOLD ONTO THE INVESTMENTS TO SUPPLY YOUR, YOUR TRUST AND, AND DIFFERENT THINGS.
AND SO SOMETIMES THOSE MARKETS GO AGAINST US AND SOMETIMES THEY GO WITH US.
LAST YEAR WE HAD A GREAT YEAR.
WE HAD OUR INVESTMENTS PERFORMED WELL, THE MARKETS WENT UP.
WE DIDN'T HAVE ANY, ANY NEGATIVE, UM, IMPACT IN THAT.
SO THAT HELPED US A TREMENDOUS AMOUNT.
AND QUITE FRANKLY, EVERY, UH, EVERY PLANT PERFORMED WELL LAST YEAR, INCLUDING THE DELEY UNIT THAT WE RETIRED.
UM, SO THE DIFFERENCE FOR THIS YEAR IS THE MARKETS DON'T, WE REALLY CAN'T TELL WHETHER OR NOT THE MARKET'S GONNA GENERATE ANY BENEFIT FROM US.
WE STILL HAVE KIND OF THAT RISK.
WE DON'T HAVE THE DEALER UNITS.
THE CAPACITY ISN'T THERE TO GENERATE THAT EXCESS POWER, BUT WE HAVEN'T GIVEN UP.
AND THAT'S WHY WE THINK THAT THERE IS SOME UPSIDE IN OUR WHOLESALE BUSINESS.
AND WE'RE, WE'RE REALLY TRYING TO MONITOR IT.
SO IT'S STILL, WE'RE STILL NOT READY TO GIVE UP TO SEE IF THERE'S SOME SAVINGS THAT WE'RE MISSING SOME, YOU KNOW, EFFICIENCY IN TERMS OF NEW TECHNOLOGY THAT WE MIGHT BE ABLE TO GET THE BENEFIT OF THIS YEAR.
UH, BUT I'M GONNA, I'M GONNA BE HONEST, INCREASINGLY AFTER FIVE YEARS OF DOING ALL THOSE THINGS AND BRINGING BENEFITS AND BRINGING JOBS, ECONOMIC DEVELOPMENT, ALL THE STUFF THAT WE'VE DONE, IT'S LOOKING MORE AND MORE LIKE MAYBE SOMETIME THIS YEAR I WILL BE COMING TO THE COMMUNITY AND TO YOU, UH, IF WE, IF WE JUST CAN'T MANIFEST THAT WITH A REQUEST FOR A RATE INCREASE, BUT WE'RE NOT READY TO DECLARE THAT AS SOON AS WE DO, I'LL BE HERE IMMEDIATELY WITH OUR BUSINESS CASE.
AND, AND YOU KNOW, THAT'S WHAT I WAS KIND OF GETTING TO.
I THINK YOU KNEW THAT, UH, WE'VE BEEN FORTUNATE OVER THE LAST FIVE, SIX YEARS THAT WE HAVEN'T HAD TO COME UP WITH A RATE INCREASE FOR YES, SIR, C P SS ENERGY.
AND THAT CERTAINLY HAS BEEN TO THE BENEFIT OF OUR CONSUMERS.
UH, BUT ALSO OF COURSE, HAVING THE ELECTRICITY AVAILABLE IS THE GREATEST BENEFIT TO THE CONSUMERS THAT WE CAN OFFER.
SO I, I APPRECIATE YOUR, YOU KNOW, YOUR FRANKNESS ON THAT.
UH, SOMETHING ELSE THAT, UH, CONCERNS ME IS THAT, YOU KNOW, WE'VE BEEN LOOKING AT A CLIMATE ADAPTATION AND ACTION PLAN AND A COMPONENT OF THAT HAS TO BE WHAT'S THE FUTURE PRODUCTION OF, UH, GREENHOUSE GASES THROUGH C P S ENERGIES, COAL, PO COAL PLANTS AND, AND GAS PLANTS.
AND THERE'S BEEN A LOT OF CONCERN THAT PEOPLE HAVE PRESENTED TO ME THAT WE SHOULD BE CONSIDERING, UH, CLOSING THE COAL PLANTS, CLOSING 'EM A LOT SOONER THAN, UH, THE FLEXIBLE PATH MAY HAVE LAID OUT.
UH, I KNOW THAT WE'VE CLOSED THE DAILY POWER PLANTS AND THAT'S REDUCED SOME OF OUR CAPACITY, ESPECIALLY IN THE SUMMERTIME TO MAYBE PRODUCE EXTRA ENERGY THAT CAN BRING IN SOME MORE MONEY.
WHAT IS THE EFFECTIVE LIFESPAN FOR THE TWO, UH, PLANTS THAT ARE CURRENTLY COAL BURNING PLANTS RIGHT NOW? WELL, THE ONE THAT'S PROBABLY CAUSING THE MOST CHALLENGE IS THE NEWEST ONE.
SO IT HASN'T BEEN OUT THERE, IT'S NINE YEARS THAT IT'S BEEN, UM, IN PLACE.
THE SPRUCE TWO UNIT, IT TECHNICALLY HAS THE CAPACITY TO RUN PAST 2040.
AND, UM, AND SO, SO IT'S A PATH AND NOT A PLAN.
AND SO, UM, WE CONTINUE, WE WILL, AND WE WILL CONTINUE TO LOOK AT
[00:35:01]
TECHNOLOGY IF IT, IF IT REALLY IS THE BEST ECONOMICS AND, AND WE HAVE THE PRICE OF GENERATION GO DOWN AND PEOPLE WILL SAY, WELL, SOLAR PRICES ARE ALREADY DOWN.WELL, THEY ARE, BUT IT'S ENERGY STORAGE IS WHAT WE'RE REALLY PAYING ATTENTION TO, RIGHT.
BECAUSE WE NEED THAT TYPE OF FIRMING CAPACITY, NON EMITTING FIRMING CAPACITY TO MAKE SURE THAT WE CAN GET THE MOST THAT WE CAN TO, TO, TO, YOU KNOW, QUADRUPLE DOWN ON RENEWABLES.
SO THAT'S WHAT WE'RE MONITORING.
IF THAT DOES SHOW UP, THEN WE HAVE A DIFFERENT TRAJECTORY ON THIS ONE.
UM, THE SPRUCE ONE PLANT IS, UH, IN THE REACHING 2030, I BELIEVE, UH, TIMEFRAME.
WE HAVE BEEN ASKED AGAIN, CAN YOU DO IT, YOU KNOW, SOONER? AND THAT'S FROM A REGULATORY STANDPOINT, HOW LONG IT CAN LAST.
UM, SO WE, WE DO HEAR AND ACCEPT THE, THE CHALLENGE OF IS THERE ANY WAY TO GET THERE? AND WE THINK THAT EVERY YEAR WE'RE GONNA LOOK AT IT AND SEE HOW WE CAN MOVE IT.
THAT'S WHAT THE FLEXIBLE PATH IS ABOUT.
BUT IT IS NOT ABOUT DECLARING THAT WE MAKE THE CHANGE WITHOUT KNOWING THAT WE HAVE A WAY TO MOVE THERE WITH RELIABILITY AND WITH AFFORDABILITY BALANCE TO THE ENVIRONMENTAL NEEDS THAT WE NEED TO GO THROUGH THE SECURITY NEEDS THAT WE NEED TO MANAGE.
SO FOR US, WE'RE MANAGING THE WHOLE THING AND WE UNDERSTAND THAT THERE IS AN INCREASED INTEREST AND WE'LL, WE'LL DO ALL WE CAN TO GET THERE.
I KNOW WE HAVE GAS FIRED, UH, PLANTS MM-HMM.
AND ARE WE LOOKING AT ACQUIRING ANY OF THOSE TO MAYBE MAKE IT EASIER TO REPLACE COAL PLANTS QUICKER? WE, WE CONTINUALLY LOOK AND SCAN TO SEE IF THERE ARE ANY GAS GENERATING UNITS.
I MEAN, UH, IN, IN ONE SENSE, UH, PEOPLE HAVE SAID DON'T DO GAS EVEN BECAUSE IT HAS EMISSIONS, BUT IT HAS HALF THE AMOUNT OF EMISSIONS THAT COAL DOES AND, AND IT CAN OPERATE VERY WELL.
AND IT COULD BE A GREAT TRANSITION TECHNOLOGY.
AGAIN, AS WE ULTIMATELY GET TO NON EMITTING.
SO WE, WE ARE DOING SOME SCANS IF WE SEE A GOOD OPPORTUNITY TO, TO ACTUALLY BUY A PLANT.
'CAUSE IF WE CAN, IF WE CAN BUY A PLANT, THEN WE CAN CONTROL THE USAGE.
NOW, IN THE INTERIM, WE DON'T NEED TO BUY A PLANT.
WE CAN, WE CAN GO OUT AND GET CAPACITY.
WE ARE LOOKING AT THE ABILITY TO FIRM UP AND INCREASE OUR RESERVES WITH SOME EXISTING CAPACITY IN THE MARKET.
AND, AND WE THINK THAT THAT IS A LOWER RISK OPTION BECAUSE WE'RE NOT PUTTING STEEL IN THE GROUND IN THAT CASE, WE'RE JUST UTILIZING THE ASSETS THAT ARE CURRENTLY AVAILABLE IN THE MARKET.
YOU ALSO MENTIONED THAT WE'VE JUST ADDED FIVE MEGAWATTS OF POWER IN SOLAR.
IT'S GONNA BE ON THE AREA OF, UH, COVERING PARKING AND THINGS OF THAT NATURE.
ARE ARE THERE OTHERS THAT ARE IN A DRAWING BOARD YES.
THAT YOU WANT TO BRING ON? BUT WHAT, WHAT KIND OF MEGAWATTAGE MIGHT THOSE BE PROVIDING OVER THE NEXT YEAR OR TWO OR THREE? WELL, WELL THAT'S A, THAT'S A GOOD QUESTION.
WELL, DISTRIBUTED SOLAR USUALLY IS MORE CHUNKY AND SMALLER BECAUSE, YOU KNOW, YOU'RE PUTTING THEM ON HOMES AND EVEN EVEN LARGE BUSINESSES.
SO ON THE UTILITY SCALE SIDE, WE ARE LOOKING FOR OPPORTUNITIES TO DO THOSE.
I MEAN, I, I WOULD IMAGINE THAT THERE'LL BE, YOU KNOW, WE'LL ULTIMATELY TRY TO BUILD THOSE IN, IN LIKE A HUNDRED MEGAWATT CHUNKS AND ABOVE AS QUICKLY AS WE CAN.
AGAIN, THOUGH, WE'RE, WE'RE GOING TO NEED TO BRING IN FIRMING CAPACITY WITH THAT.
WE'RE GONNA TRY TO BRING IN, UH, ENERGY STORAGE, RIGHT.
AND FIRM IT UP IN SOME WAY ALSO WITH PROBABLY SOME EXISTING GAS UNITS.
SO THE MORE WE DO THAT, WE WILL COME FORWARD AND KIND OF TELL YOU HOW WE'RE THINKING.
WE'RE KIND OF THINKING MORE IN A BUNDLING PERSPECTIVE TO KEEP RENEWABLES, UH, FLOWING, BUT MAKE SURE THAT IT HAS THE RIGHT LEVEL OF FIRMING CAPACITY.
UM, LEMME GO BACK A LITTLE BIT, UH, ON THE NEW FACILITY THAT'S BEING CONSTRUCTED.
WHAT WAS THE ORIGINAL COST ON THAT? THE BUDGET ON THAT? YES.
ARE WE STILL AT 210? YES, SIR.
ON TIME, ON BUDGET AND YOUR SURPLUS PROPERTIES? UM, NOT SURE EXACTLY, BUT WE THINK THAT THEY MAY BRING IN ANYWHERE FROM 50 TO $90 MILLION.
AND YOUR PLAN IS TO, UH, BUY DOWN THAT DEBT ON THE NEW BUILDING? WE, WE PLAN TO NOT PUT ANY DEBT ON THAT BUILDING AND TO MANAGE THIS THROUGH THE CASH FLOW THAT WE GET FROM THE BUILDINGS AND OUR EXISTING CASH FLOW.
'CAUSE WE DID NOT WANNA PUT DEBT ON THAT BUILDING.
UM, YEAH, IF YOU CAN, UH, KIND OF KEEP, KEEP US UPDATED ON ABSOLUTELY.
WHERE THE, WHERE YOU ARE IN THE, UH, UM, SALES.
AND WHERE WE'RE GONNA BE AT THE END OF THE DAY.
PRETTY EXCITING DAY WITH THOSE.
COUNCILMAN COURAGE KIND OF TOUCHED ON IT AND YOU, YOU TALKED ABOUT IT ALSO ABOUT A RATE INCREASE.
[00:40:01]
YOU KNOW, UM, WE HAVE BEEN VERY FORTUNATE HERE OVER THE YEARS ABOUT NOT HAVING A RATE INCREASE AND, UH, I DON'T KNOW THAT PEOPLE ARE EXPECTING ONE, BUT IF THERE'S ANYTHING OUT ON THE HORIZON, UM, ABOUT A RATE INCREASE OR EVEN THINKING ABOUT ONE, UH, NEED TO START GETTING, GETTING THAT OUT INTO THE PUBLIC ARENA NOW, UH, INSTEAD OF WAITING TILL, OKAY, IT'S COMING TO COUNCIL FOR A RATE INCREASE, THAT'S NOT GONNA WORK.WE'RE GONNA HAVE TO REALLY ADVERTISE AS TO WHY.
AND, AND WHEN I LOOK AT THIS, I HOPE THAT IT'S NOT GONNA BE TIED TO, UM, THE CAP.
BECAUSE, YOU KNOW, THERE'S A LOT OF CONSTERNATION ABOUT THE CAP RIGHT NOW, UM, RESIDENTS AS WELL AS INDUSTRY ABOUT THE COST OF THE CAP AND WHAT IT'S GONNA DO TO, UH, INDIVIDUALS POCKETS, BOOKS HERE IN TOWN ALONG WITH BUSINESSES THAT MAY LEAVE AND WHAT IT'S GONNA DO TO C P S AND THE THINGS THAT IT'S GONNA BE FORCING IN THE FUTURE.
SO, UM, I'M CERTAINLY GONNA BE VERY INTERESTED IN THAT.
UH, ALONG WITH RENEWABLES, YOU KNOW, RENEWABLES DOES NOT GIVE YOU THE, THE RETURN ON INVESTMENT AS OUR CURRENT PLANTS.
SO IF THERE'S ANY RATE INCREASE COMING UP HERE IN THE FUTURE, IT'S GONNA HAVE TO BE VERY CLEAR WHAT'S DRIVING THAT RATE INCREASE.
BECAUSE THERE IS, THERE ARE COSTS ASSOCIATED WITH A CAP AND THERE'S GONNA BE COST IMPLICATIONS FOR C P S.
AND SO I HOPE THAT WHATEVER IT IS OUT THERE IN THE FUTURE, IT'S GONNA BE VERY CLEAR AND DELINEATED AS TO, OKAY, THIS IS, THIS IS WHY THIS COST IS GROWING AND HERE'S THE COST THAT'S BEING ATTRIBUTED TO THE CAP.
THE CHALLENGE IS IT'S NOT COMPETITIVE WITH GAS.
SO GAS IS BEATING IT IN TERMS OF THE, THE INVESTMENT REQUIREMENT IS, IS TREMENDOUS.
IT'S LIKE MULTIPLE FOLDS OF A GAS INVESTMENT.
AND SO WE'RE NOT SEEING THAT THAT'S A GOOD OPPORTUNITY FOR US NUCLEAR CURRENTLY.
AND WE'RE ACTUALLY NOT SEEING THAT IT'S REALLY BEING PROMOTED NATIONALLY.
UM, THERE'S ONLY ONE, I THINK, ACT OF NUCLEAR PROJECT.
A LOT OF THE OTHER ONES HAVE STRUGGLED EITHER BECAUSE PARTNERSHIP ISSUES OR JUST OTHER, UM, COST ISSUES.
IT, IT DOES HAVE A TENDENCY TO END UP BEING A FAIRLY EXPENSIVE INVESTMENT NOW, AFTER YOU GET IT IN THAT ASSET CAN LAST YOU A TREMENDOUSLY LONG TIME.
SO THE, THE ISSUE IS WHETHER OR NOT IT'S THE BEST INVESTMENT FOR A COMMUNITY RIGHT NOW, BUT BECAUSE GAS ITSELF IS JUST SO RELIABLE AND SO AFFORDABLE, IT, IT, IT TENDS TO BEAT OUT NUCLEAR EVERY TIME RIGHT NOW.
WELL THAT, THAT'S, UH, AND THAT'S WHAT I WANTED TO HEAR IS THAT OKAY, WE'VE LOOKED AT IT, THE RETURN ON INVESTMENT ISN'T AS AS GOOD AS GAS.
AND AGAIN, I, I THINK WE NEED TO LOOK ON THAT RETURN INVESTMENT, RETURN ON INVESTMENT ON ANY PARTICULAR OPTION OUT THERE, WHETHER IT'S RENEWABLES.
GAS, COAL, UM, YOU KNOW, WE GOT THE COAL PLANTS, THAT'S PART OF OUR, PART OF OUR PRODUCTION RIGHT NOW MM-HMM.
SO LET'S DON'T ALWAYS DISCOUNT COAL JUST, JUST BECAUSE OF, UH, OF, UH, THE, UH, CLEAN AIR AND CLIMATE.
UH, I, I, IT'S A PART OF US AND YES, WE CAN WORK TOWARDS MOVING AWAY FROM THAT, BUT THERE'S A COST ASSOCIATED WITH THAT AND I DON'T WANT TO LOSE SIGHT OF THAT AND MAKING SURE THAT PEOPLE UNDERSTAND, OKAY, THIS IS WHAT IT'S GONNA COST US TO DO THAT.
COUNCILMAN COUNCILWOMAN SANDOVAL.
THANK YOU PAULA, FOR YOUR PRESENTATION.
SO, UM, I DO HAVE SOME, UH, SOME QUESTIONS.
UM, BUT FIRST I'M GONNA JUST ADD ON, I THINK WE ALSO COUNCILMEN NEED TO CONSIDER THE OTHER COSTS OF, OF USING COAL, WHICH IS, UH, THE HEALTH IMPACTS.
IT'S ONE OF OUR DIRTIEST FUELS.
SO I, I WOULD BE REMISS IF I, IF I DIDN'T BRING THAT UP, THAT THAT SHOULD BE PART OF THE WHOLE EQUATION.
UM, SO THANK YOU FOR THE PRESENTATION AND FOR ALL THE OUTREACH YOU'VE DONE, UM, THE SESSIONS THAT YOU'VE HELD AND BRINGING YOUR BOARD MEMBERS THERE.
I THINK THAT SHOWS, UM, REAL WILLINGNESS ON BEHALF OF, OF THE STAFF TO CONNECT THE BOARD MEMBERS TO, TO THE COMMUNITY, UH, AND TO BE, YOU
[00:45:01]
KNOW, FAITHFUL TO, TO THE REQUEST FROM THE COMMUNITY AS A PUBLICLY OWNED UTILITY.UM, I DID HAVE SOME, YOU AND I HAD A PRESS CONFERENCE FOR THE SMART SNIFFER MM-HMM.
SO HOW IS THAT MOVING ALONG? UM, WE ARE, UM, WE ARE DOING WELL WITH THE SMART SNIFFER NOW.
I THINK AT THE FIRST TIME WHEN WE FIRST GOT IT, IT WAS NEW TECHNOLOGY AND WE WERE TRYING TO GET, UM, OUR OPERATIONAL PROCESSES DOWN WITH THE SMART SNIFFER.
BUT NOW, UM, WE ARE ACTUALLY REDOING, WE'RE REDOING OUR WHOLE VIEW OF COMPLIANCE AND FOCUS ON ENTERPRISE COMPLIANCE OVERALL.
AND WE'RE TRYING TO FIGURE OUT A FORMALIZED PLAN SO THAT THE SMART SNIFFER IS CONTINUED TO BE DEPLOYED, AND WHAT ADDITIONAL INVESTMENTS DO WE NEED TO SMART SNIFFERS, WHAT OTHER TYPES OF TECHNOLOGY CAN WE INCORPORATE TO HELP US IMPROVE THE SYSTEMS THAT WE HAVE? SO WE'RE LOOKING AT ALL OF THAT.
SO WHEN WILL WE SEE, I GUESS, HAVE THERE BEEN ANY RESULTS FROM, FROM THE USE OF THE SNIFFER? LIKE ANY, UM, LEAKS THAT WERE FIXED AND IDENTIFIED? ABSOLUTELY.
YOU KNOW, ACTUALLY, YOU KNOW, WHAT'S INTERESTING ABOUT THE SMART SNIFFER? IT HAS A, UM, IT HAS A HIGH DEGREE OF ACCURACY TO PINPOINT A LEAK.
AND WHAT WE HAVE SEEN, EVEN IN SOME OF THE CONSTRUCTION PROJECTS THAT WE HAVE A RECONSTRUCTION WHERE WE'RE, WE'RE GOING TO REPLACE PARTS OF OUR LINES, WE CAN TELL EXACTLY WHERE TO GO TO THAT BASED UPON THE SMART SNIFFER.
SO IT'S ACTUALLY SAVED US TIME AND MONEY IN SOME OF THE PROJECTS THAT WE'VE BEEN ABLE TO DO BEFORE.
AND IF THERE IS A LEAK, IT ALSO HELPS US VERY QUICKLY SWEEP THE AREA TO, TO, TO DETERMINE HOW BIG THAT LEAK MIGHT'VE BEEN OR IF THERE ANY OTHER LEAKS IN THE AREA.
SO YES, WE ARE SEEING DIRECT RESULTS FROM THAT.
UM, I ALSO WANTED TO, UH, TO THANK YOU AND YOUR BOARD FOR, UH, DISCUSSING THE ITEM OF THE CITIZEN'S ADVISORY MM-HMM.
I THINK, UH, MAYBE COUNCILMAN COURAGE AND I HAD HAD BROUGHT IT UP PREVIOUSLY, UM, ABOUT BEING ABLE TO PUBLISH THEIR AGENDAS ONLINE.
I THINK THAT'S GONNA BE HELPFUL TO, TO MY COMMUNITY.
SO I'LL BE ABLE PROBABLY PROMOTE THAT IN, IN MY NEWSLETTER, UH, AS WELL.
I UNDERSTAND THAT THEY'RE NOT ENTIRELY COMFORTABLE OPENING THEIR MEETINGS UP TO THE PUBLIC AT THIS POINT, AT THIS POINT.
THAT CAN ALWAYS BE, UH, RE REVISITED, BUT, BUT UNDERSTOOD FOR THE MOMENT.
BUT THANK YOU FOR, FOR PUTTING THAT ON THE, ON THE AGENDA.
UH, ONE OF THE OTHER THINGS AT YOUR LAST, UH, BOARD MEETING I WAS READING ABOUT IS, UM, UH, SOME CONCERNS ABOUT THE STEP PROGRAM FROM ONE OF YOUR BOARD MEMBERS.
I MEAN, CAN YOU TELL ME, IS POLICY GOING TO CHANGE ON THAT? OR YOU, OR WHAT'S THE DIRECTION ON THE STEP PROGRAM? WELL, UM, YES, THAT WAS A LIVELY DISCUSSION ABOUT THAT
UH, THE, THE COMMENT ABOUT THE STEP PROGRAM IS THAT WHEN YOU'RE RUNNING A UTILITY OR IN A, IN A BUSINESS ENVIRONMENT, IT IS VERY DIFFICULT TO TELL SOMEBODY THAT YOU'RE GONNA PAY THEM NOT TO USE YOUR PRODUCT DOES.
IT'S HARD TO BELIEVE, YOU KNOW, IT'S HARD TO, TO SAY I'M GONNA, THAT'S NOT WHAT THE STEP PROGRAM FULLY DOES.
IT DOESN'T PUT YOU OUTTA BUSINESS, BUT YOU'RE BASICALLY PAYING PEOPLE TO USE LESS OF IT.
AND SO I, WE HAD A BOARD MEMBER THAT WAS EXPRESSING, THAT'S CONTRARY TO TRYING TO DRIVE YOUR BUSINESS IN ITS EXISTING STATE.
AND HE WAS JUST BASICALLY INDICATING THAT, IS THAT THE RIGHT THING FOR US TO BE DOING NOW? UM, BUT IT WAS GOOD.
I MEAN, I THINK IT, IT'S GREAT TO HAVE A BOARD MEMBER THAT SAYS, YOU KNOW, LET'S HAVE A CONVERSATION ABOUT THAT.
UH, IN THAT SAME CONVERSATION WE TALKED ABOUT, WHILE THERE IS EXTREME VALUE STILL IN THE STEP PROGRAM, BECAUSE YES, WE, WE ARE PAYING PEOPLE AND, AND JUST FOR, FOR CLARITY, UM, EVERYBODY PAYS ABOUT $5 A MONTH FOR THAT PROGRAM.
AND, AND I ALWAYS SAY IT'S NOT POPULAR.
EVERYTHING COSTS MONEY, RENEWABLES COST MONEY, GAS COSTS MONEY.
THERE'S SOCIAL ISSUES, THERE'S DISPOSABLE ISSUES.
EVEN THE PANELS, DISPOSING OF PANELS IN THE LONG RUN IS GONNA BE AN ISSUE FOR THE COUNTRY.
NOT THE ONE THAT WE CAN'T RESOLVE, BUT EVERYTHING HAS A PRO AND A CON THAT YOU HAVE TO DO.
AND THE PROGRAM ITSELF, EVERYBODY IN THE COMMUNITY PAYS FOR THAT.
BUT WE, BUT IN WORKING WITH THE COUNCIL, THAT WAS A GOOD INVESTMENT BECAUSE WHAT IT DOES IS IT, IT CREATES A PATHWAY TO ACTUALLY THINK ABOUT NEW TECHNOLOGIES AND MANAGING HOW MUCH ENERGY PEOPLE USE.
AT ONE POINT IN TIME, BEFORE WE DID THE STEP, I WOULD SAY MOST PEOPLE CUT ON THEIR LIGHTS AND NEVER WORRIED ABOUT WHETHER OR NOT THEY WERE USING A LOT OF ENERGY.
THERE WASN'T A DISCUSSION ABOUT CONSERVATION.
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THAT MEANS WE WILL PUT MORE IRON IN THE GROUND NO MATTER WHAT IT IS.SOLAR SYSTEMS ARE IRON COAL PLANTS ARE, WE'RE NOT, THEY'RE, WE WON'T SEE ANY MORE COAL, BUT GAS PLANTS, THOSE ARE, THAT'S IRON IN THE GROUND.
AND SO IF WE CAN BE SMART ABOUT IT AND USED TIME TO FIGURE OUT WHAT'S THE NEXT BACK STEP WHILE, WHILE TECHNOLOGY'S GETTING BETTER, OVERALL IT IS GOOD FOR US.
SO AS A C E O OF THE COMPANY, I, I STAND BEHIND THE STEP PROGRAM, IT WAS THE RIGHT THING TO DO.
'CAUSE AGAIN, WE WOULD'VE MADE AN INVESTMENT IN A TECHNOLOGY THAT IS STRUGGLING RIGHT NOW.
AND NOW WE CAN LOOK AT OTHER TECHNOLOGIES.
I MEAN, GAS WAS, GAS WAS MORE EXPENSIVE IN 2008 THAN BUILDING THE NUCLEAR UNIT, NOT ANYMORE.
AND SO YOU GET THAT, THAT ADVANTAGE OF TIME AND PROGRESS AND THE STEP HELPS YOU CHANGE BEHAVIOR.
IT HELPS YOU THINK ABOUT MAKING YOUR INVESTMENT SMART.
AND SO WHILE IT IN THE FOREFRONT SAYS YOU'RE PAYING PEOPLE TO USE LESS OF YOUR PRODUCT, IT'S HELPING YOU MAKE A TRANSITION TO THE FUTURE IN THE RIGHT WAY.
SO THAT'S THE REAL CONTEXT OF WHAT THE CONVERSATION WAS AND, AND, AND KIND OF ENDED ON THAT POINT.
NO, NO, I'M JUST GLAD TO TO HEAR YOU SAY THAT YOU STILL, UH, UH, STAND BEHIND IT.
YEAH, NO, I, I THINK IT MAKES COMPLETE SENSE.
IT BUYS US TIME TO WAIT UNTIL BETTER TECHNOLOGY COMES OUT BEFORE COMMITTING OURSELVES TO SOMETHING THAT MAY BE PASSING.
UM, RIGHT NOW IT'S ALSO LIKE, I DON'T KNOW, ALMOST LIKE PAYING SOMEONE WHO USES OUR, OUR AMBULANCES VERY FREQUENTLY TO TAKE CARE OF THEMSELVES.
UM, SO, UH, IT, SO IN TERMS OF THE NEXT ITERATION OR, OR, OR USING THE STEP PROGRAM, HOW CAN WE HELP IN GETTING MAYBE THE BIGGEST ENERGY USERS TO SIGN UP FOR, FOR THE STEP PROGRAM? OR IS IT JUST WHOEVER APPLIES? WE ACTUALLY, UM, CONTINUE EVERY YEAR TO GO OUT TO BUSINESSES THAT ARE NOT IN THE PROGRAM AND ASK THEM TO COME IN AND, AND ACTUALLY WE DID A REFRESH AGAIN THIS YEAR, BUT IF YOU HAVE SOMEONE THAT YOU THINK WE SHOULD BE TALKING TO, LET US KNOW AND WE'LL GO OUT AND WE EXPLAIN EVERYTHING.
YOU KNOW, EVEN THE UNIVERSITIES, WHICH WERE EASY, I, I HAVEN'T SEEN THEIR ENERGY BILLS
BUT IF, YOU KNOW THERE'S A LARGE ENTITY, WE WILL DO THAT WORK FOR YOU.
BUT YOU CAN DO, YOU CAN DO THE MARKETING BASED ON WHAT YOU KNOW ON YOUR END.
IN TERMS OF ENERGY USE, THAT GOT EASIER THAN, THAN.
AND THEN, UM, I DO HAVE A QUESTION ABOUT, UM, THE EXCESS CAPACITY.
AND, AND THIS MAY REQUIRE A FOLLOW-UP, UH, CONVERSATION.
SO I KNOW YOU CLOSED DELEY, WE'RE LOOKING AT SLIDE, SORRY, UM, 35.
SO YOU CLOSED DELEY AND I BELIEVE THAT WAS PART OF YOUR EXCESS CAPACITY, BUT SOMEHOW, UM, YOU, WE STILL HAVE A 19% EXCESS CAPACITY FOR, FOR PEAK DAYS.
HOW DID YOU WE HAD MUCH MORE
WE WERE WAY ABOVE 20% AT ONE TIME IN OUR, UH, IN OUR HISTORY, AND I CAN GET YOU THAT SLIDE, WE WERE OVER 30%.
UM, SO REMIND ME, I REMEMBER YOU SAYING THAT DELEY WAS USED KIND OF AS A, AS A PEAKER, YOU ONLY, UM, IT WAS LIKE ON SOME IDLE MODE AND THEN YOU WOULD FIRE IT UP MORE IF YOU NEEDED MORE.
IS CAN YOU TELL ME A LITTLE BIT ABOUT HOW THAT WORKS WITH THIS EXCESS CAPACITY? IS IT ALWAYS GOING, OR, AND WHAT I'M GETTING AT PAULA IS, UH, WE ARE IN NON-ATTAINMENT RIGHT NOW MM-HMM.
SO I'M JUST, I'D LIKE TO EXPLORE WHAT FLEXIBILITY WE HAVE.
IF, IF OUR EXCESS CAPACITY IS REALLY THAT MUCH, IS IT POSSIBLE TO SORT OF TURN DOWN THE VOLUME JUST A LITTLE BIT ON A DAY THAT'S ANTICIPATED TO BE IN OZONE DAY AND WE'RE EXPECTING THOSE TO COME BACK.
WE HAVE, UM, WE'RE IN OZONE SEASON RIGHT NOW, BUT WE PROBABLY WON'T SEE OTHER PEAKS UNTIL IN OZONE UNTIL SEPTEMBER.
FOR SOME REASON, WE, WE SPLIT IT OVER TWO PARTS OF THE, OF THE SUMMER.
SO THAT, THAT'S WHAT I'M INTERESTED IN EXPLORING WITH YOU AND, AND YOUR TEAM.
AND ERIC, I DON'T KNOW IF THAT'S BEEN EXPLORED BY THE GETTING TO 70 GROUP.
SO, UM, I'LL, WE CAN TALK A LITTLE BIT ABOUT IT AND THEN WE CAN COME BY AND SPEND SOME MORE TIME WITH YOU.
SO I THINK PART OF YOUR REFERENCE HAS, WE'VE TALKED ABOUT SOMETIMES WHEN THEY'RE, WHEN THEY'RE BASE LOAD UNITS, LIKE A COAL UNIT, UM, YOU DON'T, YOU DON'T MODULATE THAT LIKE A LIGHT SWITCH.
YOU DON'T JUST CUT IT ON AND CUT IT OFF BECAUSE IT'S, YOU CREATE MORE WEAR AND TEAR ON THE UNIT.
SO THERE ARE CERTAIN POINTS IN TIME WHERE WE WOULD DIAL THE CAPACITY BACK WITHOUT CUTTING IT OFF SO THAT THE NEXT MORNING WHEN POWER STARTED TO COME BACK FAST, WE COULD RAMP THE UNIT BACK UP AGAIN.
SO IT'S, SO, SO TO YOUR POINT, WE WOULD, WE WOULD REDUCE
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IT.WE'D ALSO REDUCE THE CAPACITY OF COAL BECAUSE AT NIGHT MORE WIND COMES THROUGH AND YOU DON'T NEED IT, AND IT'S A PRETTY GOOD FLOW OF WIND AT NIGHT.
SO THAT'S THE, PROBABLY THE MODULATION THAT WE'VE REALLY BEEN TALKING ABOUT.
UM, WHEN THE PEAK HAPPENS IN THE SUMMER HAPPENS, WE'RE RUNNING THOSE THINGS PRETTY FULL FREDS BECAUSE THEY'RE NEEDED EITHER HERE OR THEY'RE NEEDED BY ERCOT.
AND THEN THAT EXCESS CAPACITY IN THE COM, IN THE COMMERCIAL MARKETS THAT WE HAVE, WE'RE RUNNING IT, WE'RE RUNNING IT FOR ERCOT.
'CAUSE IF, IF WE SAID WE'RE NOT GONNA RUN IT BECAUSE OF EMISSION CHALLENGES, THEN WILL CAUSE INSTABILITY IN ERCOT BECAUSE YOU KNOW THAT WE NEED THE WHOLE SYSTEM TO BE AVAILABLE.
WE BENEFIT BECAUSE WHEN WE SELL THAT CAPACITY, WE MAKE MONEY AND THAT HELPS US KEEP RATES LOW IN SAN ANTONIO.
NOW WE THINK CONSCIENTIOUSLY IS THERE ANY TIME THAT WE CAN, UH, KEEP THE CAPACITY OF A UNIT DOWN, TAKE IT OFFLINE, LIKE A DAILY UNIT.
THEN WHEN THE DAILY UNITS ARE COMING OFF, IT'S SIGNIFICANTLY REDUCING ALL, YOU KNOW, THE EMISSIONS ARE GONE.
SO WE ARE SEEING BENEFITS FOR THIS YEAR BECAUSE THOSE UNITS ARE DOWN, BUT RELATIVE TO THEM BEING USED, WE THINK ABOUT IT, WE MANAGE IT, WE CAN COME BY AND KIND OF TELL YOU A LITTLE BIT MORE ABOUT HOW WE TRY TO CONTROL IT AND CONSIDER THE ENVIRONMENTAL IMPACTS AS WE GO THROUGH THE SUMMER.
AND, AND I REALIZE, UH, THAT, YOU KNOW, WE HAVE THE ABILITY TO SELL THAT AND THAT'S ALWAYS, UH, HELPFUL TO, TO C P S AND THE COMMUNITY.
I DIDN'T REALIZE IT WAS DIRECTLY TIED TO THE, TO THE RATES.
SO EVERY TIME WE SELL A MEGAWATT, I GET LIKE, SOME SORT OF REBATE, BUT MY RATE DOESN'T CHANGE.
IT ONLY CHANGES WHEN THE COUNCIL, YOU DON'T GET A RATE IN, SO YOU DON'T GET A RATE INCREASE.
LIKE FOR THAT YEAR, LIKE, SO WE, WE PRODUCED LIKE $70 MILLION EXTRA FROM THE DEALER UNITS THAT MEANS WE DIDN'T HAVE TO COME IN AND ASK FOR A RATE CASE.
WE WERE ABLE, AGAIN, TO USE IT LIKE THE STEP PROGRAM AND DEFER THE NEED FOR A BASE RATE INCREASE BECAUSE WE'RE OPTIMIZING THAT EXCESS CAPACITY IN A WAY THAT'S BENEFICIAL TO CUSTOMERS.
SO NOT IMMEDIATE, BUT IN THE, IN THE COMING YEARS.
SO I, AND I, SO THERE'S A RATE INCREASE AND THEN THERE'S THE, THE SELLING IT ON THE, ON THE MARKET.
I JUST THINK, UM, IT'S WORTH DOING A COST BENEFIT ANALYSIS FOR THIS BECAUSE, UH, SEEING HOW MANY TONS ARE REDUCIBLE, IF, IF WE WERE TO DIAL IT BACK, AND I UNDERSTAND ABOUT THE INSTABILITY IN THE ER COMP MARKET, BUT IF WE'RE ABLE TO, UH, TELL THEM.
I, I, I THINK WE SHOULD JUST EXPLORE IT.
SO WE'LL COME BY AND TALK TO YOU AND TELL YOU HOW WE DO IT.
I MEAN, THE ULTIMATE, UM, THE ULTIMATE THING IS OVER TIME WE'LL BE ABLE TO CHANGE HIS PORTFOLIO SURE.
AND IT'LL CHANGE THE WHOLE PROFILE AND THE DYNAMICS.
IT'S JUST, AND WE CAN TELL YOU HOW, HOW WE'VE MANAGED WHAT WE HAVE NOW AND HOW WE'RE LOOKING AT THE FUTURE.
I, I HEAR YOU WE'RE JUST IN NON-ATTAINMENT REVIEW FOR THE NEXT, UH, THE NEXT TWO YEARS.
AND THOSE TWO YEARS ARE ABSOLUTELY, UH, CRITICAL FOR US SO THAT WE DON'T GO INTO THE NEXT LEVEL OF, OF, UH, NON-ATTAINMENT, WHICH WOULD BE EXTREMELY MORE COSTLY FOR THE CITY, UM, AND, AND FOR THE SURROUNDING AREA.
SO I JUST, UM, I THINK WE HAVE TO, WE HAVE TO CONSIDER THAT IF IT'S, IF IT'S POSSIBLE.
BUT IF WE TAKE THAT CAPACITY OFFLINE, IT MAKES THE RATE INCREASE BIGGER.
SO IT'S, WE, WE, WE HAVE TIMING ISSUES BOTH WAYS.
AND SO WE WILL, WE WILL SHOW YOU MORE OF THE WHOLE COUNCIL ABOUT THE IMPLICATIONS OF WHEN WE COME, WE CAN MAKE AN INCREASE LIKE THIS, OR WE CAN MAKE ANOTHER INCREASE AND, AND MODULATE THAT.
AND THAT'S, THAT'S WHAT I'M ASKING FOR.
I'M NOT ASKING YOU TO SAY YES RIGHT NOW.
I'M JUST
I'M JUST SAYING THAT THE THREAT OF, OF THE NEXT LEVEL OF NON-ATTAINMENT IS SO GREAT THAT IT'S WORTH AT LEAST KNOWING WHAT THESE NUMBERS LOOK LIKE AND THE FACT THAT THIS IS OUR LARGEST POINT SOURCE FOR NOX, WHICH IS OUR BIGGEST DRIVER FOR, FOR OZONE.
UM, WE WOULD BE REMISS IF WE DID NOT, UH, EXPLORE.
I'D BE GLAD TO TELL, TELL YOU HOW THAT LOOKS.
THAT CONCLUDES OUR, OUR, UH, SPEAKERS AND QUESTIONS.
VERY, VERY THOUGHTFUL AND UH, THANK YOU FOR YOUR TIME PRESENTATION.