[00:00:53]
          >> MAYOR JONES: GOOD AFTERNOON. THE TIME IS NOW 2:05 P.M. 
          ON WEDNESDAY, MARCH 4TH, 2026, AND THE CITY OF SAN ANTONIO B SESSION IS CALLED TO ORDER. MADAM CLERK, PLEASE CALL ROLL. 
          >> CLERK: 
          [
BRIEFING ONLY
 ]
THANK YOU. TODAY'S MEETING WE HAVE TWO ITEMS, WE'LL BEGIN WITH A BRIEFING FROM CPS ENERGY ON THEIR FY '27 BUDGET, AND I ASKED THAT THEY COME IN AS WE -- AS THE BOARD WAS JUST UPDATED. 
          THIS IS THE LARGEST CPS BUDGET EVER, BOTH IN TERMS OF CAPITAL AS WELL AS O & M, SO I THINK IT WAS IMPORTANT THAT THIS BODY GET A SENSE OF WHERE THAT'S HEADED. THIS BUDGET ALSO ASSUMES A RATE INCREASE, SO AS PRESENTED, IT ASSUMES A RATE INCREASE, SO IT'S IMPORTANT THAT WE, AGAIN, -- WE NEVER WANT TO GET CAUGHT FLAT FOOTED WHEN OUR CONSTITUENTS ASK ABOUT THESE THINGS, SO I APPRECIATE THE CPS FOLKS COMING IN AND GIVING JUST SOME TOP LEVELS AT THIS POINT SO WE CAN -- AND I SEE THE CHAIR IS HERE AS WELL, SO THANKS, CHAIR ROMERO, FOR JOINING. AND THEN THE SECOND TOPIC, RELATED AS WELL, WILL BE JUST AN UPDATE ACTUALLY FROM BOTH OF OUR UTILITIES ON THE STATE OF DATA CENTERS. WE KNOW THAT, OBVIOUSLY, THIS IS A NATIONAL TOPIC, THIS IS SOMETHING THAT IS ALSO DRIVING AND SHAPING THE NEED FOR ADDITIONAL SUPPORT FROM OUR UTILITIES, AND SO A COMMON FRAME OF REFERENCE ON THIS KIND OF WHERE WE ARE AND WHERE WE'RE GOING, ESPECIALLY AS WE ARE TALKING ABOUT TWO MAJOR BUDGETS, BOTH FOR CPS AND SAWS IS ONLY PRUDENT. YEAH? SO WE'LL TAKE THE FIRST TOPIC, AND THEN WE'LL DO A ROUND OF COMMENTS AND QUESTIONS, AND THEN WE'LL TAKE THE SECOND TOPIC AND DO IT THAT WAY AS WELL. 
          OKAY. OVER TO YOU, MARIA. >> VILLAGOMEZ: THANK YOU, MAYOR. GOOD AFTERNOON, MAYOR PANDEMIC COUNCIL. 
          AS THE MAYOR MENTIONED THE FIRST ITEM IS A BRIEFING BY KRPTS UNDER FISCAL YEAR '27 PROPOSED BUDGET. ENERGY FISCAL YEAR IS FROM FEBRUARY 1 TO JANUARY 31ST, SO THE BRIEFING WILL PROVIDE AN OVERVIEW ON THE DEVELOPMENT OF THEIR BUDGET, AS WELL AS A SUMMARY OF THEIR PROPOSED BUDGET. SO WITH THAT, I'M GOING TO TURN IT OVER TO CPS ENERGY TO INTRODUCE THE PRESENTATION. 
          >> IN TERMS OF GIVING THIS BUDGET BRIEFING, AS SHE MENTIONED, THIS IS INFORMATIONAL. I THINK REALLY GOOD INFORMATION FOR THE COUNCIL. AS MANY OF YOU KNOW, WE'VE HAD MANY DISCUSSIONS WITH THE COUNCIL. OUR BOARD OF TRUSTEES, AND, YOU KNOW, THE COMMUNITY OVER THE LAST FOUR TO FIVE YEARS. 
          AND WE'VE CONSISTENTLY GOTTEN FEEDBACK FROM ALL AUDIENCES THAT, YOU KNOW, THE FOCUS CONTINUES TO BE ON RELIABILITY, AFFORDABILITY AND TO THE EXTENT THE PURSUIT OF GREENER, CLEANER ENERGY. AND WITH THAT STEADY FEEDBACK FROM OUR CUSTOMERS OVER THE LAST FIVE YEARS, INCLUDING CONVERSATIONS WE'VE HAD WITH THE RATE ADVISORY COUNCIL BACK IN '22, IT'S BEEN REALLY THE POLICY DIRECTION AND THE POLICY STRATEGY OF OUR BOARD TO REALLY MAKE THE LONG-TERM INVESTMENT THAT'S YOU'VE SEEN US DO FOR THE COMMUNITY, NOT JUST IN THE PAST, BUT ON A GOING-FORWARD BASIS. 
          SO ALL THAT SAID, THE INVESTMENTS THAT WE'RE GOING TO DISCUSS ARE REALLY REFLECTING A FEW THINGS IN OUR BUDGET, RIGHT? THE INFORMATION WE'LL SHARE HERE ADDRESSES, YOU KNOW, THE CONTINUED LOCAL GROWTH THAT WE CONTINUE TO EXPERIENCE. YOU KNOW, EVEN IN -- EXCLUDING THE LARGE LOAD OF DATA CENTERS, WHICH WE'LL TALK ABOUT LATER. 
          THIS BUDGET FOCUSES ON USING OUR CAPITAL EFFECTIVELY TO UPGRADE OUR EQUIPMENT AND TO BE AS EFFICIENT AS POSSIBLE. 
          THIS BUDGET ALSO ACHIEVES TRY AND KEEP RATES BALANCED SO THAT ALL CUSTOMERS PAY THEIR FAIR SHARE AND WE'VE HEARD THAT FEEDBACK, WE CAN TALK MORE ABOUT THAT IN THE NEXT PRESENTATION AS WELL. 
          [00:05:02]
AND IT'S ALSO WORTH NOTING THAT OUR TEAMS CONTINUE TO ACTIVELY ENGAGE IN VARIOUS FINANCING OPTIONS TO HELP PAY FOR THE THINGS AND THE INVESTMENTS TO HELP MITIGATE IMPACT ON CUSTOMER BILLS THE BEST WE CAN. I SHARE THAT AS A QUICK TEE UP AND WE'LL MOVE ON WITH THE PRESENTATION. FOUR THINGS REALLY ARE THE OBJECTIVE FOR TODAY. 
          I'LL SPEND TIME TALKING ABOUT OUR PROCESS AT CPS ENERGY, WE USE TO DEVELOP OUR BUDGET, AND DESCRIBE THE FINANCIAL CIRCUMSTANCES, WHICH WE USE AS GUARDRAILS TO ACHIEVE THE FINANCIAL HEALTH THAT WE OFTEN SPEAK ABOUT. I'M ALSO GOING TO SUMMARIZE AT A VERY HIGH LEVEL, AS MAYOR JONES INDICATED, THE CAPITAL O & M FORECAST THAT WE'VE INDICATED AND SHARED WITH OUR BOARD LAST WEEK, AND THEN I'LL ALSO SPEAK A LITTLE BIT ABOUT SOME OF THE EFFICIENCIES THAT WE HAVE WORKED TOWARDS AT CPS OVER THE LAST HANDFUL OF YEARS, WHICH ULTIMATELY BENEFIT OUR CUSTOMERS. AND THEN I'LL WRAP UP WITH A BRIEF VIEW OF HOW OUR FUNDING COMPARES WITH THE EXPENDITURES THAT WE ANTICIPATE MAKING THROUGH THE YEAR, AND THEN WRAP UP SO WE CAN MOVE ON TO OUR NEXT TOPIC. 
          SO IN TERMS OF, YOU KNOW, OUR PROCESS, RIGHT, AS YOU'D EXPECT, WE SPEND A LOT OF TIME ON AN ANNUAL BASIS CONDUCTING A COMPREHENSIVE BUDGET REVIEW. OBVIOUSLY, AS THE COUNCIL KNOWS, WE HAVE A LONG-TERM FOCUS IN TERMSESES OF OUR PLANNING ASSUMPTIONS AND PLANNING HORIZONS. A LOT OF WHAT WE DO ARE MULTIYEAR INVESTMENTS THAT REQUIRE, YOU KNOW, THE CONSISTENCY IN EXECUTION AND ALSO THE CONSISTENCY OF THE FUNDING. THERE ARE OBVIOUSLY MANY INPUTS THAT YOU CAN SEE ON THE SLIDE BEFORE YOU IN ASSUMPTIONS THAT REALLY DRIVE OUR PLANNING PROCESS, AND WE'RE CONTINUALLY REVISING AND UPDATING AND CHALLENGING THOURSELVES INTO THE NUMBERS THAT YOU SEE, AND ULTIMATELY WE DESIGN THAT BUDGET THAT WE EESH TALKING ABOUT TO ACHIEVE WHAT WE BELIEVE THE COMMUNITY'S EXPECTATIONS ARE IN TERMS OF THE SERVICE THAT WE PROVIDE. AND SO I'LL TAKE YOU TO THE NEXT SLIDE HERE, ONE OF THE WAYS THAT WE MEET THE COMMUNITY'S FINANCIAL NEEDS IS REALLY BY STAYING FINANCIALLY HEALTHY. AND FOR THOSE OF YOU THAT HAVE KNOWN ME FOR THE YEARS, IT'S OFTEN SOMETHING WE'VE TALKED ABOUT AT THIS COUNCIL AND AT OUR BOARD. AND REALLY MY MAIN POINT HAS ALWAYS BEEN AT THE END OF THE DAY OUR FINANCIAL HEALTH TRANSLATES INTO LOWER BORROWING COSTS THROUGH THE STRENGTH OF OUR CREDIT RATING AND ALLOWS US TO FUND A LOT OF THE NEEDED INVESTMENTS, ULTIMATELY LEADING TO LOWER RATES FOR ALL OF OUR CUSTOMERS IN THE COMMUNITY. AS PART OF OUR PROCESS, YOU KNOW, WE SET THESE FINANCIAL BOUNDARIES THAT YOU SEE ON THE SLIDE HERE. 
          AND THESE REALLY DO FUNCTION AS COST DISCIPLINE MECHANISMS AS WE ARE INTERNALLY DELIBERATING OUR NUMBERS. 
          FOR THE LAST FIVE YEARS, YOU'VE HEARD ME TALK TO THIS COUNCIL ABOUT THREE FINANCIAL BOUNDARIES THAT ARE USED TO MANAGE OUR FINANCIAL HEALTH, AND THAT IS WHAT IS REFLECTED ON THIS SLIDE. YOU'VE HEARD ME TALK ABOUT THESE NUMBERS, THE ILLUSTRATION IS A LITTLE DIFFERENT, TO REFLECT THAT. WE'RE REALLY TRYING TO TRIANGULATE AND KEEP EVERYTHING WITHIN THESE THREE METRICS. SO I'LL POINT OUT, THESE METRICS, RIGHT, ARE -- THESE BOUNDARIES, RATHER, ARE METRICS, RIGHT? SO THEY'RE JUST ANOTHER WAY TO MEASURE THE RELATIONSHIP OF ONE NUMBER TO ANOTHER NUMBER. AND IT'S REALLY THE RELATIONSHIPS THAT TELL THAT STORY. MORE THAN ANY ONE INDIVIDUAL NUMBER. SO AS YOU LOOK THROUGH AND YOU TRY TO BE -- YOU KNOW, COMMUNICATE WHAT THEY ALL MEAN, THE FIRST ONE AT THE VERY TOP IS OUR DEBT TO CAPITALIZATION RATIO, THAT'S THE JARGON WORD WE USE, BUT ULTIMATELY THIS IS THE VIEW OF DEBT THAT LOOKS AT THE OUTSTANDING AMOUNT OF DEBT WE HAVE RELATIVE TO OUR NET WORTH. 
          AND THE TARGET THAT WE'VE SET IS LESS THAN 70%, WHICH IS CONSISTENT WITH OUR EXPECTATIONS OF THE RATING AGENCIES FOR OUR CREDIT RATING, AND WE EXPECT TO USE THAT AS OUR UPPER BOUND -- I'LL SPEAK TO IS OUR ABILITY TO RECOVER BORROWING COSTS. 
          AND THAT'S REALLY THE BOTTOM LEFT, THE JARGON WORD YOU'VE HEARD ME USE BEFORE IS OUR ADJUSTED DEBT SERVICE COVERED RATIO, BUT REALLY THE EASIEST WAY TO THINK ABOUT THIS IS WHAT IS OUR ABILITY AT CPS ENERGY TO COVER FUNDING NECESSARY TO COVER OUR BORROWING COSTS, SO LIKE OUR MORTGAGE PAYMENT ON LONG-TERM INVESTMENTS. THAT TARGET IS 1.5 TIMES, AND THAT'S CONSISTENT WITH WHAT WE'VE SPOKEN ABOUT OVER THE LAST SEVERAL YEARS. AND THE VERY LAST ONE IN THE BOTTOM RIGHT-HAND CORNER IS REALLY A MEASURE OF OUR ACCESS TO LIQUIDITY, SO HOW MUCH CASH OR AVAILABLE CREDIT DO WE HAVE FOR THE "JUST IN CASE."  AND THAT TARGET HAS ALWAYS BEEN 150 DAYS OF CASH ON HAND OR GREATER, OR IN  IN COMBINATION WITH AVAILABLE CREDIT 200 DAYS OF LIQUIDITY ON HAND. 
          THIS IS VERY CONSISTENT WITH HOW I'VE SPOKEN ABOUT IT IN THE PAST, JUST A DIFFERENT VISUAL. OKAY. SO HERE WE HAVE ON THIS PAGE OUR CAPITAL PLAN, AND I'LL SAY A COUPLE OF OVERARCHING COMMENTS ON THIS FIRST. ULTIMATELY, THIS IS INTENDED, AS I SAID 
          [00:10:03]
EARLIER, TO ACHIEVE THE SERVICE LEVELS AND EXPECTATIONS OF OUR COMMUNITY. WE DO HAVE CLOSE TO 28,000 CUSTOMERS THAT WE'RE EXPECTED TO CONNECT THIS YEAR, ABOUT 26,000 OF THEM BEING ELECTRIC, AND ANOTHER 5,000 CUSTOMERS ON THE GAS SIDE. 
          SO WE ARE A GROWING COMMUNITY, AND I THINK THAT'S A VERY GOOD POSITIVE FOR EVERYONE HERE. AND ONE THING I'LL MENTION, JUST AS A REMINDER FOR MAYBE FOLKS WHO ARE LISTENING FOR THE FIRST TIME, YOU KNOW, CPS ENERGY IS MULTIPLE COMPANIES ALL UNDER ONE OWNERSHIP, AND WHAT WE HAVE HERE IS REALLY UNIQUE. 
          IF YOU'RE IN OTHER CITIES, LIKE IN DALLAS OR HOUSTON, YOU KNOW, CPS ENERGY WOULD BE MULTIPLE COMPANIES, THREE OR FOUR DICHT ONES. 
          AND SO -- DIFFERENT ONES. SO HERE IN CPS, WE HAVE ONE OWNER FOR TRANSMISSION AND -- WITH GAS, WE'RE TRANSMISSION DISTRIBUTION GAS COMPANY, WE'RE ALSO A POWER GENERATION COMPANY AND WE'RE ALSO YOUR ELECTRIC RETAIL PROVIDER WHO YOU CALL UP AND GET SERVICE. SO THAT MODEL HAS SERVED US VERY, VERY WELL. I'LL NOTE HERE THE BIG BUCKETS, THIS WILL LOOK SIMILAR TO THE FORMAT WE'VE USED IN YEARS PAST. 
          IT'S 1.7 BILLION. UNIQUE TO OUR CAPITAL BUDGET, THIS IS THE PORTION THAT IS PARTIALLY FUNDED BY DEBT AND PARTIALLY FUNDED BY CASH. SO IN THIS INSTANCE OF THIS YEAR, WE INTEND TO FUND CLOSE TO 80% OF THIS 1.7 THROUGH DEBT AND THE OTHER 20% WITH CASH. 
          SO THE REAL BENEFIT IS THE AMOUNT OF CASH FLOW AND RATE RECOVERY TO PAY THAT IS NOT REALLY 1.7 BILLION. AND THAT'S REALLY AN EXAMPLE OF WHEN WE SAY WE'RE USING OUR BALANCE SHEET EFFICIENTLY TO MANAGE CUSTOMER BILLS, IT'S THROUGH THAT FINANCING TECHNIQUES AND MANAGING TO THOSE METRICS THAT I SPOKE ABOUT EARLIER. 
          OBVIOUSLY THE LARGEST CATEGORIES PROBABLY COME AS NO SURPRISE, 700 MILLION THERE, FOR OUR EFFORTS TO IMPROVE RELIABILITY. 
          INTERESTING NOTE ABOUT 60%, 400 MILLION OF THAT 700 IS FOR TRANSMISSION WORK. AND AS THIS COUNCIL KNOWS, THE TRANSMISSION PORTION OF THE BUSINESS THAT WE OWN HERE AT THE CITY OF SAN ANTONIO, IT'S ACTUALLY REGULATED AT THE STATE LEVEL. SO I WOULD PUT THIS IN THE CATEGORY OF, YOU KNOW, REQUIRED WORK, BUT DIFFERENT RECOVERY METHODS, BUT IT'S STILL UNDER THE UMBRELLA OF WHAT WE SPEND. 
          THE OTHER 300 MILLION REALLY FOCUSES ON OTHER RELIABILITY AND RESILIENCY CIVIC PROJECTS, THINGS LIKE THAT TO SUPPORT -- IN OUR COMMUNITY, AND THIS IS WHAT DIRECTLY TRANSLATES TO OUTAGE TIMES AND THINGS OF THAT NATURE FOR OUR CUSTOMERS. THE NEXT MOST OBVIOUS BUCKET THERE IS AROUND CUSTOMER GROWTH WHICH AGAIN WE'LL HIT ON THAT IN THE NEXT PRESENTATION. YOU KNOW, ABOUT 290 MILLION OF THAT IS PURELY TO HOOK UP NEW CUSTOMERS AND GET THEM TO BE, YOU KNOW, BILLED AND PAYING CUSTOMERS. 28,000 CUSTOMERS ON THE ELECTRIC AND THE 5,000 CUSTOMERS ON GAS, THAT IS THE -- THAT'S THE WORK BEING DONE TO GET THEM CONNECTED. AND OBVIOUSLY, YOU KNOW, POWER GENERATION'S OUR MIDDLE -- THAT MIDDLE CATEGORY THERE, OBVIOUSLY SIGNIFICANT. OUR FLEET, SINCE THE LAST TIME WE SPOKE TO OUR COUNCIL IN ANY DETAIL, OUR FLEET IS ABOUT 3,000 MEGAWATTS LARGER. 
          SO THE INVESTMENTS TO KEEP THOSE PLANTS IN GOOD WORKING ORDER IS SIGNIFICANT, BUT WHAT YOU DON'T SEE HERE IS THE CONTRIBUTION TO THE REVENUE SIDE THAT THOSE ASSETS BRING INTO OUR COMMUNITY. 
          AND THEN, AGAIN, YOU KNOW, TECHNOLOGY AND SECURITY, THIS COUNCIL HAS HEARD A LOT OVER THE LAST FOUR YEARS, OUR INVESTMENT INTO OUR BACK OFFICE I.T. INFRASTRUCTURE, AF -- THE INVESTMENT WE'VE MADE ON THE SECURITY SIDE. AND IN THE VERY LAST CATEGORY THERE, THE OUTREACH THAT YOU SEE IN THE COMMUNITY. 
          WHEN YOU SEE ANYONE FROM DEANNA HARDWICK'S TEAM OUT IN THE COMMUNITY, THINGS OF THAT NATURE, THAT'S IN HERE, AND CONNECTING --  YOU KNOW, CONNECTING CUSTOMERS, AND THERE'S A PART IN HERE ATTRIBUTABLE TO SOME OF OUR LOCATIONS AND CLOSING DOWN SOME OF OUR SITES AND CENTRALIZING LOCATION-WISE, SOME OF OUR FACILITIES SO OUR FRONT-LINE FOLKS CAN DISPATCH IN AN EFFICIENT MANNER. ON THIS LAST SLIDE -- OR THIS NEXT SLIDE, RATHER, THIS IS THE O & M PORTION OF OUR BUDGET. 
          AGAIN, THIS IS 1.1 BILLION, AND SO THIS IS A LOT OF THE ACTIVITY THAT YOU WOULD EXPECT AS ONGOING MAINTENANCE AND ROUTINE WORK. 
          I WILL NOTE THAT THE FIRST CATEGORY THERE IS OUR LABOR. 
          WE HAVE CLOSE TO 3700 EMPLOYEES OUT IN THE COMMUNITY. 
          THAT RELATIONSHIP, ABOUT 45%, IS KIND OF HISTORICAL RELATIONSHIP THAT WE'VE ALWAYS HAD RELATIVE TO AURO & M BUDGET. 
          WE OBVIOUSLY HAVE A LOT MORE EMPLOYEES THAN WE DID FOUR YEARS AGO, PLANNED GROWTH AND ACQUISITIONS. WE TOOK ON SOME OTHER EMPLOYEES THROUGH THAT EFFORT. AND THEN, AGAIN, POWER SUSTAINABILITY AND RESILIENCY. THIS IS DOING THE OIL CHANGES YOU NEED FOR OUR POWER PLANTS. IT'S OBVIOUSLY MORE COMPLICATED THAN THAT, BUT THAT'S THE TYPE OF MAINTENANCE WE DO. 
          ABOUT HALF OF THAT, OR ABOUT 150 MILLION OF THAT SPEND IS FOR OUR PART 
          [00:15:07]
OWNERSHIP IN STP. THAT'S OBVIOUSLY A GREAT GENERATING RESOURCE IN TERMS OF LIABILITY AND IT'S ALSO A ZERO CARBON RESOURCE, SO A GREAT INVESTMENT AND OUR CUSTOMERS HAVE BENEFITED FROM THAT. 
          AND, AGAIN, THERE'S A LOT MORE OTHER INVESTMENTS, AGAIN, ON THE TECHNOLOGY SIDE. ON THE RELIABILITY SIDE AS YOU GO DOWN THERE, A LOT OF THE WORK YOU SEE OUT IN THE COMMUNITY, MAINTENANCE ON POLES, STREETLIGHTS, PLACING CIRCUITS, TREE TRIMMING, A LOT OF THAT WORK IS UNDER THIS BUCKET HERE UNDER THE O & M CATEGORY OF RELIABILITY. 
          SO THE MORE EXCITING SLIDE I'D LIKE TO SHARE IS THE NEXT ONE. 
          SO, YOU KNOW, ALL THAT SAID, YOU KNOW, WE OFTEN GET ASKED, YOU KNOW, WHAT HAVE YOU GUYS BEEN DOING TO LOOK FOR EFFICIENCIES OR COST-SIV-SAVINGS AND THINGS OF THAT NATURE. WE WANTED TO TAKE A FEW EXAMPLES AND PUT THEM ON THE SCREEN HERE SO WE CAN SHOW THE COUNCIL AND OUR COMMUNITY THE KIND OF WORK WE'VE BEEN DOING. THERE HAVE BEEN OPERATIONAL ITEMS THAT WE'VE BEEN ABLE TO -- TO UPDATE AND GET SOME EFFICIENCIES THROUGH THE INTERNAL KIND OF RIGOR ON THE FAR LEFT-HAND SIDE. 
          THERE HAVE BEEN SOME -- IN THE MIDDLE THERE, THERE'S A LOT OF WORK THERE THAT OUR I.T. DEPARTMENT HAS BEEN DOING IN TERMS OF OPTIMIZING OUR CLOUD SUBSCRIPTIONS AND THINGS OF THAT NATURE, AND OBVIOUSLY THE BIG ONE THAT YOU'VE HEARD THIS COUNCIL TALK ABOUT IS STRATEGY AROUND WHOLESALE REVENUE.  WE HAD A RECORD YEAR, WHICH REALLY HELPS COVER SOME OF THE OTHER EXPENSES THAT, YOU KNOW, WE NEED TO SPEND. 
          AND SOME OF THE OTHER THINGS THAT OUR CUSTOMERS DON'T HAVE DO ANYTHING FOR AND IT DOESN'T IMPACT SERVICE LEVELS ARE SOME OF THESE FINANCING ACTIVITIES ON THE FAR RIGHT THAT WE'RE ABLE TO DO THROUGH PREPAID TRANSACTIONS, WHERE WE'RE JUST TAKING ADVANTAGE OF THE OPPORTUNITIES IN THE FINANCIAL MARKETS TO ACHIEVE SAVINGS THROUGH SOME OF THESE NATURAL GAS OR RENEWABLE ENERGY PREPAID PURCHASES FOR COMMODITY WE WERE GOING TO BUY ANYWAYS. ALL THAT TO SAY THERE'S A LOT OF WORK THAT OUR COMMUNITY -- THAT OUR TEAMS DO TO REALLY TRY, YOU KNOW, KEEP OUR COSTS DOWN FOR OUR CUSTOMERS. OKAY. SO THIS WILL BE MY LAST SLIDE BEFORE I WRAP UP. SO WHAT DOES ALL THIS MEAN? AS YOU LOOK AT FISCAL '27, THIS SLIDE IS REALLY A BREAKDOWN OF THE FUNDS TO PAY FOR THE THINGS AND HOW WE BRING IN THE MONEY TO COVER THOSE. 
          SO I'LL START ON THE FAR LEFT-HAND SLIDE FOR THE SAKE OF JUST STEPPING DOWN THIS REALLY QUICKLY. THIS IS OUR EXPENDITURES THAT WE ANTICIPATE AND FORECAST FOR FISCAL YEAR '27. 
          THE YEAR THAT WE'RE IN. ROUNDING UP TO 1.1 BILLION ON O & M, THAT IS THE NUMBER THAT I SHOWED YOU EARLIER, THAT IS ONE OF THE NUMBERS THAT OUR BOARD OF TRUSTEES VOTES ON EVERY YEAR FOR US TO EXECUTE ON. THE LINE BELOW THAT IS OUR DEBT SERVICE. 
          I HAVE THE WORD "CAPITAL" THERE JUST TO CONNECT THE DOTS BACK. 
          THE 1.7 BILLION OF CAPITAL THAT WE TALKED ABOUT, THAT'S NOT THE FULL AMOUNT BEING SPENT IN THAT ACTUAL YEAR; PART OF THAT IS DEBT FINANCE AND PART OF THAT IS CASH FINANCED. SO THIS WHOLE 675 MILLION IS THE PRINCIPLE INTEREST PORTION THAT WE ARE PAYING FOR, I EQUATE IT TO A MORTGAGE YOU PAY ON A HOUSE. THE OTHER ONES, REPAIR AND REPLACEMENT ACCOUNT, THIS IS REALLY THE CASH BALANCE THAT WE USE TO HELP FUND A PORTION OF OUR CAPITAL PLAN. THAT'S ABOUT 530. 
          AND THEN YOU CAN SEE BELOW THAT IS OUR CITY PAYMENT FORECAST FOR THE YEAR, ABOUT 560 MILLION, WHICH IS A LITTLE HIGHER THAN THIS YEAR, CLOSER TO 510, I THINK, FOR OUR FISCAL YEAR. AND THE REST OF THAT BUCKET IS THE FUEL AND REGULATORY COST. THAT IS -- YOU KNOW, THEY'RE UNAVOIDABLE COST. THIS IS WHAT WE INJECT INTO OUR SYSTEM TO RUN THE POWER PLANTS, GO THROUGH OUR GAS DISTRIBUTION LINES AND THE REGULATORY COST ASSOCIATED AT THE STATE LEVEL. SO THAT TAKES YOU THROUGH THE EXPENDITURE. 
          AS YOU GO OVER TO THE REVENUE SIDE, WHAT I'M CALLING OUT HERE WAS THAT, YOU KNOW, THE REVENUE THAT WE FORECAST TO PROJECT COVERS ABOUT 99% OF WHAT WE THINK IS GOING OUT THE DOOR ON THE EXPENSE SIDE. 
          AS THE MAYOR ALLUDED TO, THAT IS A DELTA THAT WE HAVE IN THE PLANNING. 
          I'LL CALL OUT A FEW THINGS AS WE GO DOWN AND ADDRESS THAT. 
          I THINK ONE THING THAT STANDS OUT IS THAT GROWTH NUMBER OF $200 MILLION, AND IT'S HARD TO SEE ON THE BAR, BUT ON THE BOTTOM RIGHT YOU CAN SEE THAT. $200MILLION OF OUR FORECASTED REVENUE IS COMING FROM KIND OF THREE BUCKETS OF GROWTH. ABOUT ALMOST 20 MILLION FROM RESIDENTIAL GROWTH, THOSE ARE THE 26,000 CUSTOMERS WE TALKED ABOUT. AND ABOUT A LITTLE OVER 40 MILLION FROM OUR COMMERCIAL INDUSTRIAL GROWTH. AGAIN, THE LION'S SHARE OF THAT ORGANIC GROWTH IS COMING FROM OUR WHOLESALE BOOK, WHICH IS GOING UP ANOTHER 135 MILLION RELATIVE TO LAST YEAR. SO OUR FORECAST IS IN THE 
          [00:20:06]
400 PLUS MILLION RANGE FOR WHOLESALE REVENUE NEXT YEAR, WHICH IS A GREAT STORY. THE OTHER POINT I'D MAKE IS, YOU KNOW, THE BIG STORY WITH CPS ENERGY IS THAT A LOT OF OUR REVENUES OVER THE YEARS ARE FAIRLY VOLATILE, AND A LOT OF THE EXPECTATIONS WE HAVE DEPEND ON, IS IT A REALLY HOT SUMMER, IS THERE SCARCITY IN ERCOT THAT HELPS OUR WHOLESALE BOOK OR IS IT REALLY MILD? SO TO ADDRESS THE POINT OF HAVING A -- YOU KNOW, A DELTA BETWEEN THE REVENUE AND EXPENDITURES, WHAT WE OFTEN SAY IS, HEY, WE ARE GOING TO GET OURSELVES THROUGH THE SUMMER MONTHS. THAT GIVES US OPPORTUNITY TO MATERIALLY GET THROUGH A LARGE PORTION OF THE YEAR THAT DRIVES OUR YEAR-END FORECAST. 
          AND AT THAT POINT, I THINK, WE CAN DISCUSS THE OPTIONS IN WHICH WE CAN GO BACKFILLING UP ANY GAPS THAT EXIST  , BUT WHAT I'VE LEARNED IN MY TIME HERE, WHATEVER ESTIMATE OF THE GAP WE HAVE, IT'S GOING TO BE DIFFERENT BY THE TIME WE GET ON THE OTHER SIDE OF THE SUMMER, WHICH IS WHY WE LIKE TO HAVE THOSE MORE DETAILED CONVERSATIONS WHEN WE HAVE A BETTER IDEA. SO WITH THAT, I'LL WRAP UP, MAYOR JONES, SO WE CAN MOVE ON, BUT I'LL PAUSE FOR ANY QUESTIONS. THANK YOU. 
          >> MAYOR JONES: THANK YOU, CORY. THANK YOU FOR WALKING US THROUGH THAT. YOU KNOW, AND ALWAYS MY HAT'S OFF TO THE CPS TEAM. THEY DO GREAT WORK. AND THANKFUL THAT WE CAN ALL -- AGAIN, AS WE'RE LOOKING AT NOT ONLY THE FINANCIAL SITUATION OF THE COMMUNITY, BUT ALSO BOTH OF OUR UTILITIES COMING WITH THEIR LARGEST BUDGETS AND BOTH COMING WITH POTENTIAL RATE INCREASE REQUESTS, REALLY IMPORTANT THAT WE HAVE THIS INFORMATION SOONER RATHER THAN LATER, AND WE HAVE IT ACROSS THE COUNCIL SOONER RATHER THAN LATER. 
          SO THANK YOU FOR THAT. 
          MAJOR ACQUISITION THAT WAS MADE LAST YEAR, SPEAK A LITTLE BIT TO, YOU KNOW, HOW THAT'S PERFORMING, HOW THAT'S ALREADY, YOU KNOW, 
          PUTTING MONEY INTO THE COFFERS. >> I'LL SPEAK AT A HIGH LEVEL, AND ANYONE ELSE CAN CHIME IN, BUT WE MADE THE PURCHASE THIS PAST FISCAL YEAR, AND IT HAD -- NOT ONLY WAS THE COST TO PURCHASE THE EQUIVALENT MEGAWATTS ABOUT HALF AS MUCH AS IT WOULD TO BE BUILT, THE CONTRIBUTION OF THE WHOLESALE REVENUES WAS ABOUT 10 MILLION MORE, JUST FOR THE BALANCE OF LAST YEAR THAN WE ANTICIPATED, SO CLOSE TO $30 MILLION JUST FROM THE ASSETS WE BOUGHT. GOING FORWARD, A LOT OF THAT INCREMENTAL 130 MILLION THAT WE SPOKE ABOUT IS ATTRIBUTABLE TO THOSE ASSETS AND THE TOTALITY OF THE FORECAST WE HAVE FOR THIS UPCOMING YEAR IS LARGELY DRIVEN BY NOT JUST THE PURCHASE WE ADJUSTED, BUT ALSO DRIVEN BY THE PREVIOUS PURCHASE. AND ALL OF THAT TO YOUR POINT, MAYOR JONES, IT HELPS OUR CUSTOMERS. TO THE EXTENT WE CAN GET THE REVENUE NOW FROM THESE ASSETS BEFORE WE GROW INTO IT, THAT IS ANOTHER DOLLAR THAT WE COLLECT FROM THE STATE OF TEXAS WHO NEEDS OUR PRODUCT, BUT IS NOT SOMETHING WE HAVE TO COLLECT LOCALLY. SO AS WE GET INTO FUTURE 
          CONVERSATIONS, WE CAN TALK ABOUT THAT. >> MAYOR JONES: GREAT. 
          THANKS, CORY. AS WE DIG INTO THIS -- AT THIS POINT, I KNOW YOU WANT TO -- THE INTENT OBVIOUSLY IS TO GET THROUGH THE SUMMER, RIGHT, BEFORE YOU COME BACK TO THE COUNCIL WITH WHAT A POTENTIAL RATE INCREASE MIGHT BE, BUT WHEN YOU SHARED WITH THE CPS BOARD THAT THIS ASSUMED A RATE INCREASE, DID YOU ALREADY HAVE ONE IN MIND? 
          >> I THINK I'D PHRASE IT THIS WAY U THE $50 MILLION GAP THAT WE HAVE, IF NOTHING CHANGED, RIGHT, AND THERE WAS CONCURRENCE ON THE BOASHED, THAT WOULD BE THE -- BOARD, THAT WOULD BE THE PLACE HOLDER FOR THE RATE INCREASE -- FOR THAT AMOUNT TO ACHIEVE THAT. 
          >> MAYOR JONES: BUT NOT A SPECIFIC PERCENTAGE AT THIS POINT? 
          >> NO, WE WOULD ACTUALLY -- THEN WE WOULD BE ABLE TO ALLOCATE THAT APPROPRIATELY. 
          >> MAYOR JONES: OKAY. GREAT. IT WAS HELPFUL FOR ME, AND I THINK MAYBE A CHEAT SHEET FOR THE REST OF THE COUNCIL AS WELL, IS TO COMPILE A -- YOU KNOW, THE HIGH LEVEL -- HIGH TICKET ITEMS THAT ARE IN THAT 700 MILLION, I THINK, WOULD BE REALLY HELPFUL FOR THE COUNCIL TO UNDERSTAND. CAN YOU -- WE ARE ALSO, OBVIOUSLY, WATCHING AT THE FEDERAL LEVEL, AS THERE ARE CHANGES NOT ONLY IN REGULATIONS, BUT ALSO CHANGES IN THE INCENTIVES. AND AS WE UNDERSTAND, YOU KNOW, OUR FOCUS ON HOW WE WANT CPS TO MAKE AND MEET OUR ENERGY NEEDS, RIGHT, AS CLOSELY ALIGNED TO OUR OBJECTIVES AS OUTLINED IN THE CLIMATE ADAPTATION PLAN, SO CAN YOU SPEAK TO HOW THIS BUDGET CONTINUES TO KEEP US ON THAT PATH, RIGHT, EVEN IN LIGHT OF SOME OF THOSE CHANGES -- OR MAYBE SOME OF THE TWEAKS THAT THIS BUDGET ACCOUNTS FOR IN LIGHT OF THE CHANGES AT THE 
          FEDERAL LEVEL. >> YEAH. >> MAYOR JONES: RATHER THAT'S YOU OR ELAINA, WHOEVER WANTS TO ANSWER THAT. 
          >> MAYBE TAG TEAM. IT ABSOLUTELY ALIGNS WITH THE GENERATION PLAN THAT OUR BOARD APPROVED PREVIOUSLY.  SO THE ACQUISITION WE DID, THE NATURAL GAS, IS PART OF THE ORIGINAL PROFILE. WHAT WE DON'T TALK ABOUT ARE THE RFPS ON THE SOLAR AND BATTERY STORAGE, WHICH ARE CONSISTENT WITH THAT. THIS BUDGET CONTEMPLATES AND ABSOLUTELY CONSISTENT WITH THE PREVIOUS DIRECTION, KIND OF AGNOSTIC WITH WHAT'S GOING ON, BUT THAT'S WHAT WE CAN CONTROL. TO THE EXTENT THAT WE -- 
          [00:25:06]
          ADD? OKAY. >> MAYOR JON 
          >> ONE POINT THAT CORY MADE THAT IS IMPORTANT IS OBVIOUSLY THE CITY OWNS CPS BUT WE DO NOT INTERFERE IN OPERATIONS. HOWEVER, WE DO UNDERSTAND THE WAYS IN WHICH WE CAN HELP OURSELVES AS A CITY AND LARGELY IN THE WAY OF PROPERTY TAX, RIGHT? AND SO WE KNOW THAT WHEN CPS BUYS AND SELLS A LOT OF PROPERTY, RIGHT, CONSTANTLY DOES THAT, TO MEET OPERATIONS, WE DO POTENTIALLY, THOUGH, I THINK, HAVE AN OPPORTUNITY TO ENSURE THAT WE ARE LOOKING AT THOSE TO MAKE SURE THAT WE'RE NOT DISPROPORTIONATELY PAYING HIGHER FOR SOMETHING AS A RESULT OF WHERE THAT PROPERTY IS IN THE CITY, RIGHT? WE KNOW A PIECE OF PROPERTY RIGHT DOWNTOWN, THE PROPERTY VALUE ON THAT OR TRAJECTORY OF THAT, POTENTIAL FOR THAT, QUITE HIGH, RIGHT, VERSUS MAYBE ANOTHER PLACE. 
          SO IT'S A BALANCE WHEN WE LOOK AT THOSE POTENTIAL PURCHASES, WHEN WE LOOK AT WHAT DOES CPS NEED TO DO TO DO THEIR WORK, HOW CAN WE ALSO AT THE SAME TIME ENSURE WE ARE BEST PROTECTING PROPERTY TAX VALUE FOR OUR COMMUNITY. 
          AS WE KNOW, THERE'S JUST NOT A LOT OF OTHER WAYS IN WHICH WE CAN GENERATE THAT, SO PROTECTING POTENTIAL PROPERTY TAX IS REALLY IMPORTANT. 
          OKAY. COUNCILWOMAN ALDARETE GAVITO, UNLESS, MARIA, 
          YOU HAD SOMETHING YOU'D LIKE TO SAY? >> VILLAGOMEZ: NO, 
          MAYOR. >> MAYOR JONES: OKAY. COUNCILWOMAN? 
          >> GAVITO: THANK YOU. THANKS SO MUCH, CORY, FOR THIS PRESENTATION. 
          YOU KNOW, ONE OF THE THINGS I DID WANT TO MENTION IS THAT WHEN PEOPLE THINK OF CITY SERVICES, THEY THINK OF CPS SERVICES AND VICE VERSA, AND WHAT I MEAN BY THAT IS IF SOMEONE SEES A TREE HITTING A POWER LINE, THEY DON'T CARE WHO IS TRIMMING THAT TREE TO NOT HIT THE POWER LINE, WHETHER IT'S CPS OR CITY OF SAN ANTONIO, WE'RE VERY MUCH ONE AND THE SAME IN RESIDENT'S EYES, SO I DO THINK IT DOES -- THAT REALLY RELIES ON A STRONG PARTNERSHIP BETWEEN THE CITY AND CPS. 
          AND, YOU KNOW, IT GOES -- IT GOES WITHOUT SAYING THAT WE'RE ALL PART OF THE SAME TEAM WHEN IT MEANS CARING FOR OUR RESIDENTS. 
          AND I WOULD SAY THAT BECAUSE WE'RE PART OF THE SAME TEAM, THAT MEANS WE HAVE EXTRA HIGH STANDARDS. RUDY, I KNOW YOU'RE A PHENOMENAL LEADER AND YOU HAVE A GREAT LEADERSHIP TEAM. 
          OBVIOUSLY, I KNOW THAT YOU ALL ARE LED BY FRANCINE WITH THE BOARD AND YOU'RE LEADING A GREAT BOARD AS WELL, SO THERE IS SOME INHERENT TRUST BECAUSE OF GREAT PEOPLE LEADERS LIKE YOU ALL, AND ANYBODY WE INTERACT WITH, YOU KNOW, FROM THE CUSTOMER OUTREACH, CUSTOMER SERVICE TEAM, THEY'RE ALL PHENOMENAL. AND SO THANK YOU SO MUCH, WHETHER IT'S YOU ALL ATTENDING COFFEES WITH COUNCILWOMAN, WHETHER IT'S YOU ALL HELPING US WITH A SPECIFIC CUSTOMER ISSUE, WE DEFINITELY APPRECIATE THE PARTNERSHIP. SO I KNOW ONE OF THE THINGS THAT WE IN DISTRICT 7 HAVE TALKED AND WORKED WITH YOU ALL ON IS A LARGE NUMBER OF POWER OUTAGES FROM BROKEN TREE BRANCHES, SPECIFICALLY ON THE NORTHWEST SIDE OF DISTRICT 7. 
          SO WE KNOW THAT RELIABILITY IS EXTREMELY IMPORTANT, AND THAT WE ALSO KNOW THAT AN INVESTMENT IN THIS INFRASTRUCTURE IS EXTREMELY IMPORTANT. SO IT'S -- IT'S SMART OF US TO CONTINUE TO INVEST WISELY IN THIS, ALSO TO THANK YOU FOR CONTINUING TO INVEST IN SECURITY. 
          WE KNOW SECURITY BREACHES SEEM TO BE MORE FREQUENT AND SO FIST KAILTED SO WE HAVE TO STAY AHEAD OF THE GAME HERE. I APPLAUD Y'ALL'S EFFORTS ON REDUCTION STRATEGIES ON SLIDE 7. I HAD A QUICK QUESTION, HAS THE REDUCTION IN NONEMERGENCY OVERTIME, HAS THAT HAD AN IMPACT ON 
          SERVICE DELIVERY? >> I DON'T THINK SO, FROM WHAT I UNDERSTAND. 
          THE INTENT WAS NONEMERGENCY, SO I DON'T BELIEVE THERE'S A 
          SIGNIFICANT IMPACT. >> GAVITO: OKAY. WE JUST OBVIOUSLY WANT TO MAKE SURE, AGAIN, CPS, CUSTOMER SERVICE IS THE SAME AS CITY CUSTOMER SERVICE, SO WE WANT TO MAKE SURE WE'RE TAKING CARE OF OUR RESIDENTS IN UNISON. ON SLIDE 8, I DID HAVE A QUICK QUESTION. 
          ONE OF THE EXPENSE DRIVERS WAS GAS LEAK, SURVEYING AND REPAIRS. 
          IS THAT ONE OF THE MAJOR EXPENSE DRIVERS, OR WHAT GOES INTO THAT? 
          >> NO, IT'S NOT. YOU KNOW, WE ARE ALWAYS DILIGENT ABOUT DOING SURVEYS, WE'RE ALWAYS DILIGENT ABOUT DOING GAS LOCATES. 
          866, CALL BEFORE YOU DIG, SO THOSE ARE OUR NONQUESTION WORK WHEN WE DO THAT. SO THAT WAS JUST AN EXAMPLE TO BE RELATABLE. 
          >> GAVITO: OKAY. GOT IT. SOUNDS GOOD. 
          AND OBVIOUSLY WE KNOW THAT SOME OF THE RATE INCREASES COMING UP WITH CPS AND SAWS AND OTHERS, IT'S ARE L GOING TO PUT OUR RESIDENTS IN A BIND, BUT WHAT WE CAN DO IS MAKE SURE THAT WE ARE ALL DOING OUR DUE DILIGENCE 
          [00:30:01]
TO MAKE SURE THAT OUR PARTNERS IN CPS AND IN SAWS, YOU KNOW, HAVE A GOOD PLAN, HAVE A GOOD PROCESS FOR TAKING CARE OF OUR RESIDENTS AND CAN OFFER MORE TO OUR RESIDENTS THAN THEY'RE DOING TODAY. 
          SO THIS ALL LOOKS GOOD TO ME. THANK YOU SO MUCH. 
          THANKS. COUNCILWOMAN VIAGRAN? >> VIAGRAN: THANK YOU. 
          THANK YOU, CORY, FOR THE INITIAL PRESENTATION. I THINK WE'RE JUST AT THE BEGINNING, AND THERE'S STILL SOME QUESTIONS THAT I KIND OF HAVE. 
          I'M LOOKING FORWARD TO THE NEXT CONVERSATION, BECAUSE I THINK THERE'S A LOT OF POTENTIAL THERE AS WE MOVE FORWARD AND WHAT -- WHAT IS POTENTIALLY OUT THERE FOR ENERGY SOURCES AND REVENUES. 
          WE NEED TO TAKE A LOOK AT THIS IN A HOLISTIC APPROACH AS WE LOOK AT RATES AND RATE RESTRUCTURING AND HOW WE MAKE -- HOW WE WEATHERIZE THE HOMES, ESPECIALLY IN THE POORER SIDES OF TOWN, IN THE SOUTH SIDE. 
          AGAIN, I WILL CONTINUE TO SAY THAT THIS IS ALL GOOD TO KNOW, BUT IF THEY CAN'T GET INTO A PROGRAM WHERE THEY CAN AFFORD MRI WEATHERIZE THEIR WINDOWS, GETTING A NEW AC UNIT ISN'T GOING TO HELP. IF THEY KEEP ON BUYING ENERGY EFFICIENT DEVICES, BUT THEY KEEP ON FLIPPING A SWITCH BECAUSE THEY HAVEN'T UPGRADED, IT'S NOT GOING TO HELP. HOW DO WE DO THIS IN CONCERT WITH EACH OTHER, WITH THE DIFFERENT PROGRAMS THAT WE HAVE. 
          SO I LOOK FORWARD TO GETTING SOME OF THAT INFORMATION. 
          THE OTHER THING I LOOK FORWARD TO -- AND PART OF THIS IS BECAUSE I'M GOING OUT INTO THE COMMUNITY AND PILOTING -- I'M GOING TO START WITH MY SENIORS, ON GOING ONLINE AND CHECKING OUT THESE WEBSITES.  AND I WILL GIVE Y'ALL ALL THE FEEDBACK BECAUSE I DO WANT ALL OF OUR RESIDENTS, BUT OUR OLDER ADULTS TO BE ABLE TO GO ONLINE, TAKE CARE OF THE BILL, LOOK AT THEIR ENERGY USAGE. AND THAT WAY THAT THEY CAN SET UP AN APPOINTMENT, COME INTO THE FIELD OFFICE AND TALK ABOUT WHY IS IT SO HIGH FIRST THING. SO WE'RE GOING TO TAKE A LOOK AT YOUR WEBSITE AND WHAT THEY CAN -- WHAT INFORMATION THEY CAN GARNER REGARDING THEIR BILL THERE,  BUT IT'S -- PART OF THAT IS HAVING A GOOD WEBSITE AND BEING ABLE TO PAY THAT BILL. AND BEING ABLE TO DO THIS WITHOUT HAVING TO GET A CHECKBOOK. SO I REALLY WANT TO MAKE SURE YOU HAVE -- THEY WANT TO GET ON A PAYMENT PLAN WITH CPS, THAT THAT IS THERE AS WE LOOK AT THAT. AND I THINK THAT'S WHERE WE LOOK AT INCENTIVIZING THOSE THAT ARE -- ARE ENERGY SAVERS AND ARE -- IF IT'S A HOUSEHOLD OF FOUR, BUT THEY'RE NOT USING AS MUCH ENERGY AS THEY'RE SUPPOSED TO, LET'S FIND OUT WHY. BECAUSE THEY'RE A GOOD MODEL FOR THAT. 
          IF IT IS A HOUSEHOLD OF TWO SENIOR CITIZENS AND THEIR ENERGY BILL IS WAY UP HIGH, WHERE ARE THEY WASTING THAT ENERGY? SO I THINK THERE'S GOING TO BE A LOT OF CONVERSATIONS TO HAVE, AND I APPRECIATE ALL THE EFFORTS Y'ALL PUT IN, BUT I THINK THIS IS THE BEGINNING OF A LONG CONVERSATION SO THAT AFTER THE SUMMER, WE CAN REALLY SIT AND TALK ABOUT WHAT RATE RESTRUCTURING LOOKS LIKE AND WHAT IT LOOKS LIKE FOR WHICH OF OUR RESIDENTS AND THINGS LIKE THAT AS WE MOVE FORWARD. 
          SO THANK YOU. THANK YOU FOR THE PRESENTATION. 
          KEEP UP -- I'M NOT GOING TO TELL Y'ALL TO KEEP BUYING MORE POWER PLANTS, BUT KEEP OUR ENERGY ON THE PRIORITY. I THINK Y'ALL ARE REALLY GOOD AT WHAT Y'ALL DO FOR SAN ANTONIO, BUT ALSO FOR THE STATE OF TEXAS AS A 
          WHOLE. THANK YOU. >> THANK YOU, MA'AM. 
          APPRECIATE IT. COUNCILWOMAN MEZA GONZALEZ?  COUNCILMAN 
          WHYTE? >> WHYTE: THANKS, MAYOR. I'LL BE BRIEF. 
          THANKS FOR THE PRESENTATION. I DO WANT TO SAY THAT I THINK OVER THE PAST FOUR OR FIVE YEARS THE TURNAROUND THAT CPS AND THE NEW FORWARD-LOOKING DIRECTION HAS -- IS PAYING DIVIDENDS, AND AS WE TALK ABOUT RATE INCREASES MOVING FORWARD, I'VE GOT TO SAY -- YOU KNOW, AND I'VE SAID IT BEFORE, IF YOU LOOK AT WHAT'S BEEN PRESENTED TO THIS COUNCIL THIS YEAR, POTENTIAL CPS RATE HIKE, POTENTIAL SAWS RATE HIKE, WE'VE TALKED ABOUT PROPERTY TAX INCREASE. THERE'S BEEN WORD OF A POTENTIAL TELECOM TAX, YOU KNOW, RELATED TO VIA. 
          THIS IS ENTIRELY TOO MUCH MONEY THAT WE'RE ASKING THE CITIZENS OF SAN ANTONIO TO TAKE OUT OF THEIR POCKETS. AND I KNOW, KNOWING THIS COUNCIL, THAT NOBODY'S GOING TO WANT TO TAKE A VOTE IN THE AFFIRMATIVE ON ANY OF THOSE UNLESS WE WERE TO SEE REAL DATA AND REAL EVIDENCE THAT THAT 
          [00:35:01]
MONEY IS BEING SPENT APPROPRIATELY AND THAT THERE'S A REAL NEED FOR THE INCREASED REVENUE GOING FORWARD. AND, YOU KNOW, WITH THAT SAID, AGAIN, I THINK THAT CPS, FROM WHAT I'VE SEEN IN THE LAST FIVE YEARS, HAS CERTAINLY TAKEN GREAT STRIDES IN THAT REGARD, AND I LOVE THE FORWARD-LOOKING NATURE OF WHAT YOU GUYS HAVE BEEN DOING. 
          WITH THAT SAID, I REALLY ONLY HAVE ONE QUESTION, AND IT RELATES TO AI. 
          ANY EXPLORATORY MEASURES YOU GUYS ARE TAKING OR HAVE PUT IN PLACE AT CPS TO MAYBE MAKE THE ORGANIZATION MORE EFFICIENT? 
          >> RUDY'S GOING TO SAY THEY ASKED -- THEY PUT IN CHATGPT, WHAT IS COUNCILMAN WHYTE GOING TO ASK IN THIS MEETING. . 
          >> IN TYPICAL UTILITY FASHION, WE'RE GOING AT IT IN A MEASURED MANNER. 
          THERE ARE ALL KINDS OF EFFICIENCIES, TO SPEAK DIRECTLY TO YOUR QUESTION ON THE OTHER SIDE OF THE UPGRADES THAT WE'RE MAKING WHICH WE'VE BEEN TALKING ABOUT FOR FOUR YEARS, WE'RE ABOUT IN THE MIDDLE OF THAT PROCESS AND IT'S GOING REALLY WELL. A LOT OF THE CASES THAT WE'VE BEEN BUILDING WILL LEAD US TO -- YOU KNOW, THE PEOPLE WE HAVE TODAY ARE GOING TO BE DIFFERENT JOBS IN THE FUTURE BECAUSE OF THE TOOLS THAT ARE COMING ALONG, YOU KNOW, WITH AI AND JUST AN UPGRADED COMPUTER SYSTEM. I MEAN, OUR CUSTOMERS ARE GOING TO EXPERIENCE, YOU KNOW, THEIR INTERACTIONS WITH US DIFFERENTLY. SO I THINK THEY'RE -- THERE ARE SOME REALLY, REALLY INTERESTING USE CASES, COUNCILMAN, TO ANSWER YOUR QUESTION, THAT ARE ON OUR LIST OF THINGS THAT WE'RE WORKING ON THAT WILL BE ENABLED BY THE TECHNOLOGY WE'RE MAKING INVESTMENTS IN. 
          AND, YOU KNOW, ONCE WE GET TO THAT POINT AND START IMPLEMENTING THEM, WE'LL BE COMING BACK WITH A DIFFERENT LIST OF WHAT -- YOU KNOW, WHAT COST SAVINGS MEASURES HAVE COME FROM THE $300 MILLION INVESTMENT WE'VE BEEN MAKING IN OUR TECHNOLOGY. SO, YEAH, I'M REALLY EXCITED ABOUT WHAT'S TO COME. AND WE'VE R ALREADY DOING SOME REALLY COOL THINGS. YOU KNOW, WE USED TO -- JUST ONE EXAMPLE. 
          WE USED TO, YOU KNOW, SEND A TREE TRIM CREW OUT AND THEY WOULD START AT ONE PART OF THE NEIGHBORHOOD AND THEY WOULD TRIM THE WHOLE -- THEY WOULD GO THE WHOLE LINE, RIGHT? AND SOME WOULD NEED TRIMMING AND SOME WOULDN'T NEED TRIMMING. NOW WE CAN PINPOINT EXACTLY, NO, WE'RE GOING TO GO TO THIS HOUSE, WE'RE GOING TO TRIM THAT TREE. SO YOU HAVE A MORE EFFICIENT USE OF YOUR RESOURCES, WE'RE USING DRONES, WE'RE USING LIE DAR, WE'RE USING ALL KINDS OF TECHNOLOGY THAT HAS COME ABOUT THROUGH THE ADVENT OF AI, SO THERE ARE A LOT OF WAYS THAT WE'RE USING THEM TODAY, BUT THERE ARE GOING TO BE A TON MORE OPPORTUNITIES ONCE WE GET OUR COMPUTER SYSTEMS 
          UPGRADED. >> WHYTE: OKAY. I'VE GOT SOME MORE FOR YOU WHEN IT COMES TO DATA CENTERS, BUT I GUESS WE'LL SAVE THAT TO THE NEXT PART OF THE CONVERSATION. BECAUSE I AM -- I AM VERY INTERESTED IN MAKING SURE THAT WE CAN SUPPORT THESE DATA CENTERS AND THAT WE HAVE THE GENERATORS AND THE CAPACITY AND THE EQUIPMENT TO MAKE SURE THAT WE CAN DO THAT, BECAUSE I'M NOT SURE THAT WE'VE BEEN ABLE TO OVER THE PAST YEAR OR SO. SO -- BUT I'LL SAVE THAT FOR THE SECOND PART OF TODAY'S B SESSION. THANKS, MAYOR. COUNCILWOMAN MEZA 
          GONZALEZ? >> GONZALEZ: THANKS, MAYOR. 
          THANK YOU FOR THE PRESENTATION. JUST A COUPLE OF CLARIFYING QUESTIONS. I APPRECIATE SLIDE 4, JUST REALLY A REMINDER TO ALL OF US IN THIS PROCESS OF THESE GUARDRAILS THAT ARE IN PLACE, RIGHT, WHETHER IT'S CPS OR SAWS OR THE CITY, THOSE ARE ALL IMPORTANT FOR US TO REMEMBER THAT WE HAVE TO MAKE SURE THAT OUR -- WE DO MAINTAIN A STRONG CREDIT RATING AND THAT HIGHER BORROWING CAPACITY, RIGHT? SO I APPRECIATE STARTING THERE. ON SLIDE 5, I THINK 5 AND 6, SO HOW MUCH OF THE CAPITAL AND OPERATION AND MAINTENANCE SPENDING IS DIRECTED TOWARDS AGING POWER PLANTS VERSUS NEW GENERATION? 
          DO YOU HAVE AN IDEA OF THAT? >> THE MAINTENANCE ON THE FLEET WE HAVE THAT'S NONNUCLEAR IS ABOUT 100 MILLION. 
          AND ABOUT, I THINK, 30, 40% OF THAT IS FROM THE NEW AS SELTS WE PURCHASED. AND SO, YOU KNOW, I THINK THE -- THE INVESTMENT WE'VE BEEN MAKING IS STRONG AND I THINK IT'S IN LINE WITH THE FORECAST WE ANTICIPATED WHEN WE WERE MAKING THOSE ACQUISITIONS. 
          I'M VERY PLEASED WITH TIN VESTMENT THAT WE'RE -- THE INVESTMENT THAT WE'RE 
          DOING FOR THOSE. . >> GONZALEZ: DO YOU HAVE 
          ANY -- >> I'LL FOLLOW UP WITH THE EXACT DETAIL ON 
          THAT. >> GONZALEZ: IF YOU COULD. 
          THAT WOULD BE HELPFUL. BACK TO SLIDE 4 REALLY QUICKLY, THE DIFFERENCE BETWEEN THE CASH ON HAND AND THE 200 DAYS OF LIQUIDITY, IS THAT THE 
          1.4 AND THE 1.5 IN THE PARENTHESES. >> YES, MA'AM, THAT IS CORRECT. THE 1.4 IS THE CASH ON HAND. 
          >> GONZALEZ: OKAY. LET'S SEE. SLIDE 7, ON THE 
          [00:40:02]
OPERATIONAL EFFICIENCY, DO YOU HAVE ANY IDEA OF -- RIGHT, ON THE -- IS THERE ANY IDEA OF THE MEASURABLE COST SAVINGS THAT IS EXPECTED FROM 
          THIS? >> IN ADDITION -- >> GONZALEZ: ON THE 
          OPERATIONAL EFFICIENCY, THE 40% REDUCTION? >> OH, YES. 
          IT'S IN THE MILLIONS, SEVERAL MILLIONS. I CAN FOLLOW UP WITH YOU, 
          BUT IT WAS VERY NOTABLE. SO WE'LL GET YOU THAT. >> GONZALEZ: OKAY. 
          THANK YOU. JUST A COUPLE OF QUESTIONS ON SLIDE 8. 
          ON THE GROWTH, THE 28,000 NEW ELECTRIC AND 5,000 NEW GAS CUSTOMERS, CAN YOU KIND OF EXPAND ON WHAT MODELING WAS DONE TO SUPPORT THIS LEVEL OF 
          GROWTH? >> I MEAN, THERE'S -- IT'S VERY EXTENSIVE, AND I THINK WE CAN GO INTO MAYBE MORE DETAIL OFFLINE, BUT WE HAVE A WHOLE TEAM WITHIN ELAINA'S AREA THAT LOOKS AT ALL KINDS OF ECONOMIC, DEMOGRAPHICS -- FORECAST. SO IT'S NOT JUST A TREND THAT WE LOOK AT. 
          THERE'S A LOT OF COMPLICATED ANALYSIS. WE LEVERAGE SOME THIRD 
          PARTIES AS WELL TO HELP WITH THAT FORECAST. >> GONZALEZ: OKAY. 
          PERFECT. AND THEN ON THE LAST POINT THERE ON THE PLANNED MAINTENANCE FOR AGING FLEET, IS THAT EXTENDING THE LIFE OF THAT EXISTING FLEET, OR IS IT KIND OF SETTING THEM UP ON A PATH TO 
          RETIRE? >> FOR ALL OF OUR FLEET HAS KIND OF AN EXPECTED USEFUL LIFE, AND SO THAT'S REALLY JUST THE MAINTENANCE TO HIT THAT USEFUL LIFE. WE HAVEN'T MADE ANY CHANGES AND DECISIONS FROM WHEN WE ANTICIPATE SOMETHING TO CLOSE, AS AN EXAMPLE. 
          >> GONZALEZ: OKAY. THOSE ARE ALL MY QUESTIONS FOR NOW. 
          I THINK TO COUNCILWOMAN VIAGRAN'S POINT, THIS IS JUST THE BEGINNING, SO LOOK FORWARD TO FUTURE CONVERSATIONS. I KNOW WE HAVE A TOWN HALL SET UP IN DISTRICT EIGHT ON MARCH 17TH, I BELIEVE, IN THE MORNING, SO REMINDER TO DISTRICT EIGHT RESIDENTS, WE WILL BE COMING THERE SOON. 
          THANK YOU. >> THANK YOU, MA'AM. >> MAYOR JONES: CITY 
          COUNCILMAN MCGEE-RODRIGUEZ. >> MCKEE-RODRIGUEZ: THANK YOU, MAYOR, AND THANK YOU FOR THE PRESENTATION. CAN WE GO TO SLIDE 7 REAL QUICK? FOR THE NONEMERGENCY OVERTIME, WHAT IS THAT 
          40% REDUCTION ESTIMATE TO IN DOLLARS? >> YOU KNOW, I THINK AS I MENTIONED EARLIER, IT'S SEVERAL MILLION DOLLARS. I'LL TAKE THAT TO AN ACTION ITEM TO GET BACK TO BOTH YOU AND THE COUNCILWOMAN. 
          >> MCKEE-RODRIGUEZ: SORRY. I MISSED THAT WHEN IT WAS ASKED. 
          >> NO WORRIES. >> MCKEE-RODRIGUEZ: IS THAT A NEW REDUCTION THAT YOU GUYS DECIDED THIS YEAR OR IS THAT SOMETHING THAT HAS BEEN -- 
          >> IT WAS SOMETHING THAT WE LOOKED AT. WE WERE LOOKING AT OUR PROCESSES, ENGAGEMENT WITH CUSTOMERS AND WHERE WE COULD LEVERAGE THE GOOD RELATIONSHIPS WE HAVE AND FIND SAVINGS. SO IT WAS A GREAT EFFORT 
          THAT WAS DONE THIS YEAR. >> MCKEE-RODRIGUEZ: OKAY. SO SEVERAL MILLION THERE. I SEE 8.75 MILLION SAVED IN FLEET STRATEGY, ABOUT 1.7 MILLION IN -- REVENUE AND MARKET STRATEGIES THAT ARE ANTICIPATED TO -- I READ THE REVENUE AND MARKET STRATEGY AS THINGS THAT AREP HAING THAT ARE ANTICIPATED TO YIELD A RETURN ON INVESTMENT, NOT NECESSARILY AN OPERATIONAL EFFICIENCY THAT YOU'RE TAKING ON IN THE NEW YEAR. 
          AM I ACCURATE OR INACCURATE IN THAT? >> THEY ARE MORE REVENUE SIDE BENEFITS. SO AS AN EXAMPLE, I MAY NOT HAVE AN EFFICIENCY ON THE EXPENSE SIDE, BUT THE WHOLESALE REVENUE IS AN OFFSET AND LOCAL CUSTOMERS DON'T HAVE TO PAY FOR. ON YOUR BILL, THAT'S $30 MILLION NOW THAT THE CUSTOMERS DON'T HAVE TO PAY BUT THEY'RE GETTING THE SAME PRODUCT THEY WOULD HAVE ANYWAYS, SO IT'S NOT LIKE WE'RE OUT IN THE FIELD BECOMING EFFICIENT, BUT THIS IS OPTIMIZING THE FINANCIAL AND WHOLESALE MARKETS IN A WAY TO DEFRAY COST FROM OUR LOCAL CUSTOMERS, IF 
          THAT HELPS. >> MCKEE-RODRIGUEZ: I GUESS I'M JUST -- I KNOW A BIG THING COUNCILMAN WHYTE HAD ASKED FOR, I KNOW I HAD ASKED FOR, WHAT CAN BE DONE TO REDUCE A RATE INCREASE BY AS MUCH AS POSSIBLE AND MINIMIZE WHATEVER THAT WAS GOING TO BE. AND I SEE HERE THINGS THAT HAVE BEEN, YOU KNOW, -- THAT HAVE BEEN IN THE WORKS FOR MULTIPLE YEARS THAT ARE CREATING A MORE EFFICIENT ORGANIZATION, BUT I THINK THE REAL GOAL WAS TO SAY, HEY, BEFORE WE REALLY -- BEFORE WE PUT THIS BUDGET TOGETHER AND BEFORE WE MAKE THIS RATE INCREASE REQUEST OF CITY COUNCIL AND OF OUR CONSTITUENTS, WHAT IS THE ABSOLUTELY MOST WE CAN DO TO ENSURE 
          THAT THAT INCREASE IS MINIMAL. >> EVERYTHING ON THIS PAGE WORKS TO THAT EFFORT, SO WE CAN -- I CAN REVISIT THAT. 
          BUT THAT WAS THE INTENT OF THIS PAGE. >> MCKEE-RODRIGUEZ: GOT YOU. LAST RATE INCREASE IT WAS SAID THAT IN ORDER TO IMPLEMENT A TIERED RAILT STRUCTURE SIMILAR TO SAWS, THAT TECHNOLOGY WAS GOING TO BE NEEDED AND THAT TECHNOLOGY WOULD BE ACQUIRED THROUGH THE -- YOU KNOW, THE MONEY THAT WAS GOING TO BE ACHIEVED THROUGH THE PREVIOUS RATE INCREASE. WHAT IS THE STATUS OF THAT? 
          >> THAT'S PART OF OUR ERP PROJECT, WHICH IS STILL A COUPLE OF YEARS OUT FROM 
          [00:45:04]
COMPLETION. THAT WAS A FIVE-SPES TO SIX-YEAR PROJECT. 
          WE'RE IN THE MIDDLE OF THAT. I THINK WE'LL BE READY TO HAVE THAT CONVERSATION ON THE BACK HALF OF SUMMER WHEN WE FINISH OUR COST OF SERVICE STUDY THAT WE NEED TO DO AND CAN GIVE YOU AN UPDATE ON THE STATUS OF OUR -- 
          SPEAKING ABOUT. >> MCKEE-RODRIGUEZ: IT JUST SEEMS LIKE A VERY LONG -- THAT'S INTERESTING TO ME. AND I KNOW YOU HAD PROBABLY SAID IT WOULD TAKE A WHILE, BUT FOUR, FIVE, SIX, SEVEN YEARS? IT'S KIND OF -- I DON'T KNOW, IT SEEMS OUTRAGEOUS TO ME THAT ANY TECHNOLOGY WOULD TAKE THAT LONG TO CREATE A SYSTEM THAT IS COMPARABLE TO SOMETHING THAT'S HAPPENING AT ONE OF OUR OTHER UTILITIES ALREADY. 
          AND SO I'M CHALLENGED THERE. >> I THINK WE CAN TAKE THAT AS AN ACTION ITEM TO FOLLOW UP. IT'S VERY COMPLICATED, THERE'S HUNDREDS OF SYSTEMS THAT WE'RE TALKING ABOUT, AND, YOU KNOW, WE'LL TAKE THAT ACTION TO MAKE SURE WE GIVE YOU ALL THE DETAIL THAT YOU REQUIRE BEFORE WE HAVE ANY MORE CONVERSATIONS ON THAT. 
          >> MCKEE-RODRIGUEZ: GOT YOU. AND WHAT IS YOUR BACKUP PLAN IN THE EVENT -- OR WHAT DOES THE BACKUP BUDGET LOOK IN THE EVENT CITY COUNCIL DOES NOT APPROVE A RATE INCREASE, BECAUSE I UNDERSTAND THIS 
          BUDGET WAS PRESENTED TO THE BOARD? >> I THINK -- AGAIN, I BACK UP TO, YOU KNOW, MANAGING VOLATILITY IN EVERY YEAR IS SOMETHING WE HAVE TO DO, JUST BECAUSE OF THE NATURE OF OUR REVENUES. 
          SO THROUGH COMBINATION OF PRIORITIZATION AND THROUGH COMBINATION OF INTERNAL DISCUSSIONS, WE'RE KIND OF ALWAYS READY TO, YOU KNOW, PIVOT. BUT I THINK AT THIS POINT, IT'S PREMANYTURE TO TALK ABOUT THAT. I THINK FOR US IT'S ABOUT GETTING TO THE OTHER SIDE OF THE SUMMER TO SEE WHAT POSITION WE'RE IN TO BETTER INFORM THAT CONVERSATION AND TO INFORM THE PRIORITIZATION. 
          >> MCKEE-RODRIGUEZ: OKAY. I THINK WHEN WE'RE HAVING CONVERSATIONS WITH CONSTITUENTS AND SURELY WHEN YOU COME TO DISTRICT TWO FOR A TOWN HALL, IT WOULD BE GREAT TO SAY, HEY, THIS IS -- THIS IS ALL THE WORK THAT WE'VE DONE TO PREVENT A RATE INCREASE, THIS IS WHAT WE NEED AT THE END OF THE DAY. IF WE DON'T GET THIS, THEN THIS IS WHAT THE 
          COST OF THAT IS. AND I THINK -- >> YEAH. 
          >> MCKEE-RODRIGUEZ:  -- MAKING SURE WE ALL KNOW THAT AND MAKING SURE OUR CONSTITUENT KNOW IS GOING TO BE IMPORTANT. RIGHT NOW I'M NOT FULLY BOUGHT IN JUST YET. THOSE ARE THE OUTSTANDING ITEMS I HAVE FOR YOU. 
          >> THANK YOU. THAT MAKES SENSE. >> MCKEE-RODRIGUEZ: THANK 
          YOU, MAYOR. COUNCILMEMBER CASTILLO? >> CASTILLO: THANK YOU, MAYOR. THANK YOU FOR EVERYTHING Y'ALL DO OVER AT CPS ENERGY. AS I SHARED WHEN SAWS GAVE THEIR PRESENTATION, WE HAD A UTILITIES TOWN HALL, REALLY GRATEFUL FORMAT THANK YOU AND ELAINA FOR GIVING A PRENSZTATION FIELDING DISTRICT FIVE RESIDENT QUESTIONS. IT WAS A VERY RICH DISCUSSION, THERE WAS VALUE IN HAVING BOTH CPS AND SAWS PRESENT TALKING ABOUT THE GENERATION PLAN AND THE RATE OVER ON THE SAWS, AND WHAT WAS WAS BROUGHT UP ON DISCUSSION WAS SIMILAR ALONG THE LINES OF COUNCILMAN MCKEE. 
          COUNCILMAN MCKEE-RODRIGUEZ. AND ELAINA DID SHARE IT'S GOING TO REQUIRE THAT TECHNOLOGY INVESTMENTS, I DO SHARE CONCERNS IN TERMS OF THE TIMELINE. I BELIEVE THERE WOULD BE VALUE WITH FREQUENT UPDATES WITH COUNCIL IN TERMS OF WHERE YOU ARE AT IN THAT WORK AND THAT WAY THERE'S BENCH POINTS WE COULD BE FOLLOWING IN TERMS OF WHAT THAT RATE ADJUSTMENT COULD LOOK LIKE -- NOT RATE ADJUSTMENT, THE OVERALL RATE ADJUSTMENT OF THE STRUCTURE RATHER. I UNDERSTAND OVER THE NEXT PRESENTATION WE WILL BE GOING INTO SOME OF THE WEEDS OF THE RATE STRUCTURE, BUT GIVEN THE BREAKDOWN ON SLIDE 8, I -- MY UNDERSTANDING IS THERE ARE UNIQUE RATES FOR VERY LARGE USERS. FOR EXAMPLE, THE EXTRA LARGE POWER SERVICE RATE AND THE SUPER LARGE POWER SERVICE RATE. 
          I'D LIKE TO UNDERSTAND, AND IF POSSIBLE, RECEIVE A LIST OF HOW MANY LARGE POWER USERS ARE RECEIVING EACH OF THOSE SERVICE RATES TO JUST UNDERSTAND THE OVERALL IMPACT AND JUST HAVE AN UNDERSTANDING OF HOW THIS RATE STRUCTURE MAY BE IMPACTING BOTH CPS AND THE CITY OF SAN ANTONIO, SO IF THAT'S SOMETHING WE COULD RECEIVE, I'D APPRECIATE THAT. 
          AND THEN I REALLY APPRECIATE YOU, CORY, EMPHASIZING ON THE TECHNOLOGY COMPONENT. THIS IS SOMETHING WITH THE LAST CPS CONVERSATION THAT I WANTED A GREATER UNDERSTANDING. I UNDERSTAND THAT WE CAN'T GET TOO SPECIFIC -- OR I BELIEVE THE LAST TIME, WE DON'T WANT TO DISCUSS THIS PUBLICLY IN TERMS OF WHAT TYPE OF TECHNOLOGY WE'RE PURCHASING. I WOULD FIND VALUE IN AN EXECUTIVE SESSION WITH CITY COUNCIL TO UNDERSTAND WHAT IS THE COST PER TECHNOLOGY -- THOSE ITEMS, BECAUSE -- 
          TYPE OF TECHNOLOGY AND FOR WHAT. >> COUNCILWOMAN, WE CAN COME BACK AND GIVE YOU A SIMILAR PRESENTATION THAT WE GIVE TO OUR BOARD UPDATING THEM ON WHERE WE'RE AT IN OUR TECHNOLOGY UPGRADE. 
          I MEAN, I KNOW, YOU KNOW, FOUR OR FIVE YEARS SOUNDS LIKE A LOT OF TIME. 
          IT TOOK US A YEAR TO GET THE CONTRACTS IN PLACE. IT'S TAKEN US A YEAR TO WRITE THE REQUIREMENTS FOR WHAT WE WANT THE SYSTEM TO DO, AND NOW 
          [00:50:03]
WE'RE, YOU KNOW, IN THE PROCESS OF GETTING TO THE POINT WHERE WE'RE BUILDING THAT OUT. SO THAT WILL HAVE A RELEASE AT THE END OF THIS YEAR, WE'LL HAVE A RELEASE NEXT YEAR, AND WE'LL HAVE A RELEASE IN 2028. SO, BECAUSE, WE HAVE HUNDREDS OF SYSTEMS THAT DO THE THINGS THAT WE NEED THEM TO DO, YOU HAVE TO PHASE IT IN SO THAT YOU DON'T, YOU KNOW, JUST DUMP ALL THE TOYS OUT OF THE TOY BOX AND, YOU KNOW, HAVE TO PUT THEM BACK IN IN A WAY THAT YOU WEREN'T EXPECTING TO. 
          SO WE'VE GOT A PRESENTATION THAT WE CAN COME GIVE IN THE FUTURE B SESSION, BEN, THAT WE'LL BE GLAD TO COME AND Y'ALL CAN DIG INTO IT, YOU 
          KNOW, TO THE EXTENT Y'ALL ARE INTERESTED. >> CASTILLO: THANK YOU. 
          I APPRECIATE THAT, RUDY. AND MY NEXT QUESTION IS REGARDING THE SLIDE THAT HAS THE REDUCTION IN NONEMERGENCY OVERTIME. CAN YOU HELP ME -- CAN 
          YOU REMIND ME AGAIN HOW Y'ALL GOT TO THAT POINT? >> SO LET ME KIND OF -- I'M GOING TO GIVE YOU AN EXAMPLE. AND OUR LEADERS HAVE BEEN TRYING TO FIND WAYS TO REDUCE, YOU KNOW, HOW WE SCHEDULE CREWS IN A WAY THAT DOESN'T IMPACT RELIABILITY BUT THAT ALLOWS US TO SAVE MONEY. 
          I'M GOING TO JUST GIVE YOU ONE EXAMPLE OF THAT. WE SCHEDULE A LOT OF SUNDAY OVERTIME. IF WE HAD TO MOVE A LINE, IF WE HAD TO IMPACT THE CUSTOMER SO THAT THEIR BUSINESS, YOU KNOW, WASN'T IMPACTED, WE WOULD DO THE WORK ON SUNDAY. WELL, GUESS WHAT? WE PAY THE HIGHEST OVERTIME RATES ON SUNDAY. SO WE STARTED SCHEDULING THAT OUT A LITTLE DIFFERENTLY, SO MAYBE WE DO IT OVERNIGHT ON A THURSDAY NIGHT WHEN, YOU KNOW, WE CAN ACCOMMODATE -- WHEN THE CUSTOMER CAN ACCOMMODATE THE WORK. SO, YOU KNOW, HOW WE -- HOW WE ACTUALLY CREATE CREWS THAT ARE ON STANDBY IF A STORM COMES IN OR IF SOMETHING POPS UP IN THE EVENING, YOU KNOW, HOW WE STRUCTURE CREWS IN A WAY THAT WILL ALLOW US TO REDUCE THE AMOUNT OF OVERTIME WE'RE PAYING. 
          IT'S JUST A -- IT'S A HEALTHY WAY TO CONSTANTLY BE RECREATING THE BUSINESS IN A WAY THAT HOLDS OUR CUSTOMERS HARMLESS BUT ALLOWS US TO SPEND LESS MONEY. SO IT'S ALL OF THE ABOVE. 
          IT'S EVERY TIME WE SCHEDULE A CREW FOR OVERTIME WORK, IS THAT THE MOST EFFICIENT WAY WE CAN DO IT, OR IS THERE ANOTHER WAY? 
          >> CASTILLO: AND TWO FOLLOW-UP QUESTIONS TO THAT, RIGHT? THE CONVERSATION OF AI CONCERNS ME, ESPECIALLY IF IT'S GOING TO REPLACE AN EMPLOYEE, RIGHT? SO NONE OF THOSE REDUCTION HAVE TO DO WITH 
          POTENTIAL AI DOING WORK OF AN ELECTRICIAN? >> NO, MA'AM. 
          >> CASTILLO: OKAY. AND THEN SECONDLY, THAT DOESN'T MEAN THAT CONTRACT LABOR'S GOING TO BE TAKING UP THOSE ADDITIONAL HOURS OR -- 
          >> NO. >> CASTILLO: OKAY. >> I THINK THAT, YOU KNOW, THERE ARE -- THERE'S WORK THAT I DON'T NECESSARILY WANT TO PAY MY LINEMEN 50 BUCKS AN HOUR TO GO CHANGE A LIGHTBULB. 
          WE OUTSOURCED OUR WHOLE STREET LIGHTING PROGRAM FOR TWO REASONS. 
          WE WANTED TO IMPROVE THE OVERALL SERVICE TO THE COMMUNITY, PUBLIC SAFETY AND ALL THE THINGS THAT STREET LIGHTING HELPS, BUT I ALSO DON'T WANT MY LINEMEN BOOMING UP 281, YOU KNOW, IN THE MIDDLE OF THE NIGHT FROM A SAFETY STANDPOINT, THAT'S NOT WHAT I WANT MY INTERNAL CREWS DOING. 
          SO THAT'S SOMETHING THAT'S PRIME TO BE OUTSOURCED. 
          THAT'S NOT GOING TO TAKE AWAY FROM THE WORK THAT OUR LINEMEN, YOU KNOW, HAVE TO DO ANYWAY, SO I THINK THERE ARE SOME THINGS WE CAN DO THAT ARE MORE APPROPRIATE FOR CONTRACTORS, BUT OVERALL, IT'S NOT GOING TO FORCE A REDUCTION IN -- YOU KNOW, WE'VE GOT A GREAT RELATIONSHIP WITH IBW AND 
          OUR PARTNERS, AND WE'RE GOING TO CONTINUE THAT. >> CASTILLO: I APPRECIATE THAT. ONE LAST QUESTION, AND FOR ANYONE ON THE TEAM, REGARDING SOME OF THE REAL ESTATE THAT CPS ENERGY OWNS, I'M EXCITED THAT ONE PROPERTY WAS SOLD TO THAD, RIGHT, NEAR LONE STAR BREWERY AND TO SEE THE OPPORTUNITY THERE,  BUT I'M ALSO CURIOUS AROUND THE CITY ARE THERE OTHER VACANT PROPERTIES THAT Y'ALL HAVE AND POTENTIAL OPPORTUNITY WITH THE CITY OF SAN ANTONIO AND THE NEIGHBORHOOD DEPARTMENT 
          TO CONSTRUCT HOUSING PROJECTS. >> WE'VE GOT A STRATEGIC REAL ESTATE PLAN THAT LOOKS INTO THE FUTURE. I AM COMMITTED TO INVESTING IN OUR WORKFORCE. TO INVEST IN OUR WORKFORCE, WE'VE GOT RETIRE 1950, '60, YOU KNOW, OLD SERVICE CENTERS AND BUILD THEM SOME NEW STUFF. AND WHAT THAT ALLOWS US TO DO IS TO CONSOLIDATE, YOU KNOW, MULTIPLE PROPERTIES INTO ONE LOCATION THAT MORE EFFICIENTLY ALLOWS US, YOU KNOW, TO SEND OUR CREWS WHERE THEY NEED TO GO. SO EVERY TIME WE -- WE BUY A PROPERTY IMPLEMENT OUR REAL ESTATE MASTER PLAN, THERE ARE PROBABLY TWO OR THREE PROPERTIES WE'RE GOING TO SELL, AND WE BUY AND SELL PROPERTIES, YOU KNOW, ALL THE TIME. AND I'M, YOU KNOW, SENSITIVE AND I RESPECT THE MAYOR'S POSITION ON NOT WANTING TO TAKE REALLY GOOD PROPERTIES OFF THE TAX ROLLS. WE TRY REALLY HARD TO FIND PROPERTIES THAT HAVE BEEN SITTING THERE, YOU KNOW, FOR A LONG TIME THAT DON'T HAVE -- YOU KNOW, THAT HAVEN'T HAD ANY OTHER OPPORTUNITIES TO REDEVELOP. AND, YOU KNOW, SO I THINK THERE'S A BALANCE WE CAN REACH, BUT THERE ARE -- YOU KNOW, FOR INSTANCE, WE BOUGHT THAT OLD MALIBU PROPERTY OFF I-10. WE SHOULDN'T HAVE BROUGHT IT QUITE FRANKLY WHEN WE DID, FIVE, SIX YEARS AGO. WE'RE IN THE PROCESS OF SELLING THAT. WE'RE CONSTANTLY CHURNING -- YOU KNOW, WE MIGHT BUY A PROPERTY THINKING WE MIGHT NEED IT AND THEN SELL IT BECAUSE 
          [00:55:01]
WE FIND A BETTER WAY TO DO IT. SO THAT HAPPENS, YOU 
          KNOW, EVERY YEAR. >> CASTILLO: AND TO THAT, I'D LIKE TO REVIEW THE STRATEGIC PLAN, AND I THINK THERE'S OPPORTUNITY EXPLORING THE RIGHT OF FIRST REFUSAL AGREEMENT WITH THE CITY OF SAN ANTONIO WITH SOME OF THOSE PROPERTIES, BECAUSE THERE'S A LOT OF NEED AND OPPORTUNITIES AND I THINK CPS WOULD BE A GREAT PARTNER. I UNDERSTAND YOU ALL HAVE TO MAKE THE DECISION BASED UPON THE BOARD'S RECOMMENDATION, BUT A LOT OF VALUE THERE. AND ONE LAST POINT, RIGHT, I REALLY LIKE THE SAWS' STRATEGIC PLAN AND I THINK IT WOULD BE GREAT IF CPS ENERGY COULD CREATE SOMETHING SIMILAR, IT WALKS US THROUGH FOR THE NEXT FEW YEARS WHERE THE INVESTMENT, HOW MANY MORE EMPLOYEES WOULD BE HIRED TO SERVICE SOME SEWER MAIN BREAKS OR WATER BREAKS, IT WALKS US THROUGH IN DETAIL WHERE THE TECHNOLOGY WOULD BE GOING AND ALSO WHERE THE EQUIPMENT WOULD BE PURCHASED. WE'RE GOING TO GET THE TECHNOLOGY OR EXECUTIVE SESSION, BUT I THINK HAVING THE DETAILS WOULD BE -- GIVE ME COMFORT AND CONFIDENCE IN TERMS OF NAVIGATING A RATE ADJUSTMENT. 
          >> COUNCILWOMAN, WE DO HAVE STRATEGIC PLAN, IT'S CALLED VISION 2027. 
          WE'RE WORKING THROUGH THE BOARD TRYING TO UPDATE THAT RIGHT NOW, TO VISION 2030, SO WE ALWAYS KEEP A FIVE-YEAR PLAN CURRENT, AND WE'LL BE GLAD TO COME 
          TALK TO YOU ABOUT. >> CASTILLO: I'D LOVE TO SIT IN CROSSREFERENCE BECAUSE I'VE REVIEWED THE LAST FEW YEARS BUT IT'S NOT AS DETAILED, RIGHT? I'D LIKE TO POINT OUT IN TERMS OF OPPORTUNITY WHERE CPS CAN INCLUDE ADDITIONAL INFORMATION. THANK YOU, RUDY. THANK YOU, MAYOR. 
          COUNCILMAN GALVAN? >> GALVAN: THANK YOU, MAYOR. 
          THANK YOU, EVERYONE, FOR THE PRESENTATION, THE CPS LEADERSHIP. 
          A COUPLE QUICK THINGS. I DON'T THINK I'LL SAY ANYTHING TOO DIFFERENT FROM WHAT FOLKS HAVE SAID ALREADY, I DEFINITELY WOULD LIKE TO SEE THE PARSING OUT OF THE INFRASTRUCTURE PROJECTS THAT ARE HIGHLY NEEDED, MEDIUM NEEDED OVER THE NEXT SEVERAL YEARS, I THINK THE OVERALL TIMELINE THE RATE RESTRUCTURE, THE TIMELINE FOR THAT, THE TIMELINE FOR THE TRANSMISSION PROJECTS WOULD ALL BE HELPFUL TO HAVE US, AT LEAST FOR MYSELF, GRASP A LITTLE MORE WHERE ARE WE GOING WITH ALL THESE, WHEN DO WE NEED THEM, WHEN IT'S SUPPOSED TO COME ONLINE AND HOW DO WE EXPECT RESIDENTS TO BE IMPACTED. I'M GOING TO ECHO COUNCILWOMAN CASTILLO AND MCKEE-RODRIGUEZ'S POINTS, THINK BOTH WE NEED THE DETAILED VIEW WHAT HAPPENS IF WE DON'T GO FORWARD  WITH THE RATE INCREASE, WHAT DO WE LOSS, BUT ALSO WHAT DO WE GAIN. 
          WHEN WE HAVE DISCUSSIONS ON RATE ADJUSTMENTS, WHETHER IT'S UTILITIES OR TAX REVENUE, ET CETERA, THERE SHOULD BE A CLEAR AND SPECIFIC MATERIAL CHANGE FOR PEOPLE, THAT'S HOPEFULLY A POSITIVE ONE. 
          I THINK IF PEOPLE ARE SEEING GRID RELIABILITY, THAT MAKES SENSE, AND YET MY SIDE OF TOWN CONTINUES TO FACE BROWNOUTS IN SOME FORM, OR FEELING OF THAT, WHAT ARE WE GOING TO ADDRESS THAT FOR RESIDENTS TO BETTER UNDERSTAND AND FOR US TO BE ABLE TO COMMUNICATE WHAT'S POSSIBLE WITH THIS ADJUSTMENT AS WELL. SAME THING GOES FOR ANY OTHER PROGRAMS, TREE TRIMMING PROGRAM, BEING ABLE TO QUICKLY I'D IF WHERE WE'RE INVESTING THAT MONEY INTO THAT MATERIALLY BENEFITS OUR RESIDENTS WILL BE HELPFUL IN THOSE CONVERSATIONS. ONLY ONE QUESTION -- SORRY, I HAVE TWO ACTUALLY. ONE BIG QUESTION I HAD AND THIS IS GOING TO BLEED OVER INTO THE NEXT PRESENTATION, BUT WITH THE COST OF SERVICE STUDY, I KNOW WE'LL TALK MORE ABOUT THAT IN A BIT, BUT IN PARTICULAR WITH SLIDE 5 LOOKING AT THE INFRASTRUCTURE RELIABILITY COMPONENT, DO WE CONCLUDE WITHIN THE CUSTOMER COST OF SERVICE STUDY TRANSMISSION NEEDS OR GRID NEEDS TO MEET GROWING DEMAND, OR IS IT PRIMARILY JUST HOW MUCH 
          ENERGY THAT CUSTOMER USES? >> I'M NOT SURE I DIRECTLY UNDERSTAND THE QUESTION, BUT THE COST OF SERVICES IS BASED ON THE -- HOW MUCH EACH CUSTOMER USAGE PROFILE PUTS ON THE SYSTEM. 
          >> GALVAN: OKAY. >> SO THAT'S DONE AND WE ROUTINELY DO THAT AND WE'LL UPDATE AND TALK TO THE CITY STAFF AS WELL. DOES THAT HELP? 
          >> GALVAN: IT DOES HELP. MY QUESTION WAS MORE AIMED AT WE'RE SEEING A GROWING CUSTOMER CLASS IN SOME FORM, DO WE EXPECT TO SEE WITHIN THAT COST OF SERVICE STUDY, THE INCLUSION OF TRANSITION UPGRADES OR GRID UPGRADES 
          OR IS IT SIMPLY DIRECTLY THE WATTAGE. >> NO, SORRY. 
          ALL OF THIS COST IS HOW MUCH EACH ONE OF THOSE CUSTOMERS PUT ON THE 
          SYSTEM. >> >> GALVAN: IN TOTAL. 
          >> RELATED TO THE CLIMATE ADAPTATION PLAN AND OUR GOALS THERE, I KNOW YOU SAID IT ALIGNS WITH OUR GENERATION PLAN OR WITH CPS GENERATION PLAN, BUT WHERE ARE WE AT WITH CPS MEETING THE CURRENTLY SET OUT CLIMATE ADAPTATION 
          GOALS? >> HELLO. THANK YOU FOR THE QUESTION, ELAINA BALL, WITH CPS ENERGY. CURRENTLY OUR CARBON EMISSIONS INTENSITY FOR OUR POWER GENERATION PORTFOLIO IS SOMEWHERE BETWEEN EIGHT AND 900 POUNDS OF CO2 PER MEGAWATT HOUR, AND WE -- THAT'S OUR CURRENT STATE. AND WE EXPECT TO, YOU KNOW, HAVE MARKED REDUCTIONS AS WE SEE GENERATION CHANGES FROM MOVING AWAY FROM COAL TO RENEWABLE ADDITIONS, AND MOVING TOWARDS MORE AGILE 
          [01:00:06]
TECHNOLOGIES LIKE THE RESOURCES THAT WE JUST RECENTLY PURCHASED IN OUR PORTFOLIO THAT CORY MENTIONED IT. BUT WE HAVE OVER A GIGAWATT OF RFPS OUT RIGHT NOW FOR WIND, SOLAR AND STORAGE AS WELL AS A 50 MEGAWATT COMMUNITY SOLAR RFP, SO WE'VE GOT ALL OF THOSE PIECES IN PLACE. FOR 2030, WE DO EXPECT -- OUR OBJECTIVE IS TO REDUCE OUR CARBON INTENSITY FROM THE BENCHMARK YEAR BY 41%. 
          IN 2040, 71%. WE DO HAVE PLANS TO MOVE US IN THAT DIRECTION. 
          THERE ARE A LOT OF CHANGES BETWEEN NOW AND THEN IN ORDER TO EFFECTUATE THAT, BUT WE ARE GOING TO A R RIEF AT STN SHALY LOWER CARBON 
          INTENSITY OVER THE NEXT DECADE AND A HALF. >> GALVAN: GOT IT. 
          WOULD YOU DESCRIBE CPS'S WORK GETTING TO MEET THOSE GOALS AND IT SOUNDS 
          LIKE GENERALLY YES. >> YES, SIR. >> GALVAN: THOSE ARE ALL MY QUESTIONS. THANK YOU, MAYOR. COUNCILMAN MUNGIA? 
          >> MUNGIA: THANK YOU, MAYOR. FOLLOWING UP UP TO SOME OF THE QUESTIONS THAT WERE ASKED, WHEN WAS THE LAST TIME YOUR RATE 
          STRUCTURE WAS UPDATED? >> I'LL HAVE TO GET BACK TO YOU ON THAT.  I KNOW WE HAVEN'T DONE ANYTHING SIGNIFICANT OVER THE LAST TWO RATE INCREASES. 
          >> MUNGIA: OKAY. LET'S SEE HERE. DO Y'ALL HAVE A REGULAR 
          TIMELINE ON THAT, OR IS IT JUST KIND OF AS WE -- >> THIS RATE RESTRUCTURING HAS COME UP WITH NUMBER OF TIMES TODAY, AND I JUST WANT TO MAKE A COMMENT. YOU KNOW, I THINK INHERENTLY THE WAY SAWS RATES ARE STRUCTURED AND OUR RATES ARE STRUCTURED IS DIFFERENT. 
          YOU KNOW, FROM A REGULATORY STANDPOINT, WE HAVE TO CREATE RATES THAT ARE JUST AND REASONABLE, AND REFLECT THE WAY A CUSTOMER'S USING OUR SYSTEM. AND, YOU KNOW -- AND SO THERE ARE WAYS WE CAN CREATE RATE STRUCTURES THAT INCENTIVIZE, YOU KNOW, LESS USAGE, FOR INSTANCE. YOU KNOW, NOW, THERE'S PHILOSOPHICAL CONVERSATIONS TO BE HAD ABOUT WHETHER YOU FORCE PEOPLE ON THOSE RATES OR WHETHER YOU MAKE THEM, YOU KNOW, DISCRETIONARY, THEY CAN GO ON THEM -- IF THEY'RE GOING DO THE WORK THAT IT TAKES, YOU KNOW, TO SAVE MONEY. 
          BUT SO I THINK -- I THINK THERE'S PROBABLY A CONVERSATION THAT NEEDS TO BE HAD AHEAD OF US ABOUT ALL THE WAYS WE COULD STRUCTURE RATES IN THE ELECTRIC AND GAS BUSINESS, AND, YOU KNOW, WHICH OF THOSE WE'RE MOST INTERESTED IN AND WHAT THE RAMIFICATIONS OF THOSE ARE. 
          THE BIGGEST CHALLENGE WITH TIERED RATES IS YOU'RE GOING TO CATCH PEOPLE THAT ARE AT THE LOWER INCOME LEVELS, YOU KNOW, THAT CAN'T, YOU KNOW, CHANGE THE WAY THEY USE POWER BECAUSE THEIR OLD INEFFICIENT HOUSE IS GOING TO USE 2000-KILOWATT HOURS A MONTH, AND I AM VERY SENSITIVE FROM AN EQUITY STANDPOINT TO FORCING PEOPLE ONTO A RATE THAT I KNOW IS GOING TO INCREASE THEIR BILL. SO WE HAVE TO THINK ABOUT THOSE, YOU KNOW, REALITIES OF POLICY AND DECIDE WHAT'S BEST FOR US, BUT I DO THINK WE CAN TALK ABOUT DIFFERENT RATE STRUCTURES AS WE, YOU KNOW, GET TO THE POINT WHERE WE CAN ACTUALLY IMPLEMENT THEM IN OUR 
          SYSTEM AND DECIDE WHAT WE WANT DO AS A COMMUNITY. >> MUNGIA: THAT LEADS ME TO MY NEXT QUESTION, ACTUALLY, BECAUSE I'M ALSO VERY SENSITIVE TO THAT, IS WHEN DO WE EXPECT TO GET AN IN-DEPTH PRESENTATION ON STEP AND THE UPDATES AND KIND OF CHECK IN ON WHERE WE ARE ON THAT? 
          >> WE ACTUALLY HAVE A YEAR 3 REPORT READY TO GO ANY TIME THAT COUNCIL IS READY. WE'VE HAD TO DEFER IT DUE TO OTHER TOPICS, BUT WE'RE PREPARED JUST AS SOON AS YOU ALL ARE READY. 
          >> MUNGIA: YEAH,  I'LL MAKE A NOTE TO THAT TO THE ELT STAFF THAT THAT WILL BE WORTHY IN THIS CONVERSATION. AND ALSO THE -- YOU HAVE A COMMUNITY INPUT COMMITTEE. WHAT'S BEEN THEIR INPUT 
          ON THIS PROPOSED BUDGET AND RATE INCREASE? >> HI, I'M CATHY GARCIA, ALSO WITH CPS ENERGY. OUR CIC, WE ACTUALLY HAVE A MEMBER HERE TODAY. 
          MICHAEL, THANK YOU FOR BEING HERE. IS OUR 19-MEMBER COMMUNITY COMMITTEE, AND WE PROVIDE BRIEFINGS TO THEM ON A VARIETY OF TOPICS. THEY HAVE RECEIVED INFORMATION ON OUR BUDGET AS WELL AS OUR ONGOING PROCESS FOR REFRESHING OUR GENERATION PLAN. 
          WE DO HAVE -- THOSE MEETINGS ARE OPEN, THEY ARE RECORDED, THEY ARE LIVE STREAMED AND WE MAKE SURE TO TAKE THEIR FEEDBACK AND INCORPORATE 
          IT INTO ALL THE PLANS THAT WE BRING FORWARD. >> MUNGIA: THANK YOU. 
          SO IT MAY BE -- I HAVEN'T SEEB THE MEETINGS, BUT MAYBE YOU CAN SEND ME A SUMMARY OF WHAT THEIR INPUT HAS BEEN AFTER YOU GAVE THEM THIS INFORMATION AND THEY GOT TO DIGEST IT. THAT WOULD BE VERY 
          HELPFUL FOR ME. >> SURE. HAPPY TO DO THAT. 
          >> MUNGIA: THANK YOU. SO AUSTIN, IT'S BEEN DOCUMENTED, Y'ALL HAVE PROBABLY HEARD THIS IN THE PAST, HAS UTILIZED THE PROFESSIONAL CONSUMER ADVOCATE, AND I KNOW WE HAVE A LITTLE DIFFERENT SITUATION HERE, BUT IS THAT SOMETHING THAT CPS AND THE CITY THROUGH BEN WOULD ENTERTAIN AS A 
          [01:05:01]
          POSSIBILITY? >> OUR CITIZEN INPUT COMMITTEE IS WHERE WE GO FOR THAT TYPE OF INPUT. I MEAN, -- AND THAT'S -- I THINK IT'S QUESTIONED -- WE'RE NOT -- CITY IS INTERESTED IN GETTING SOME TYPE OF FEEDBACK, YOU KNOW, INDEPENDENTLY, BUT I MEAN, OUR PROCESS, YOU KNOW -- OUR CIC, OUR BOARD, YOU KNOW, I MEAN, THEY'RE CITIZEN -- THEY. 
          >> MUNGIA: YEAH, NO, THAT'S GREAT. I'M JUST LOOKING AT SPECIFICALLY, YOU KNOW, A CONSUMER ADVOCATE, RIGHT? SO I KNOW IT'S GREAT INPUT FROM THE CIC, AND THAT'S VERY IMPORTANT. 
          I DON'T KNOW HOW MANY OF THEM HAVE BEEN, YOU KNOW, DONE OR CPAS HAVE DONE, YOU KNOW, SCRUTINY OVER LARGE CORPORATIONS SUCH AS YOURSELF, SO I'LL TALK TO BEN ABOUT THAT. I THINK THAT'S SOMETHING I'VE HEF HEARD A LOT FROM SOME OF OUR COMMUNITY MEMBERS, AND IF THERE'S A WAY FOR US TO DO THAT THAT KIND OF HELPS THE COMMUNITY FEEL A LITTLE BIT BETTER ABOUT THE SITUATION, FOR US, FOR ME, PERSONALLY, I THINK IT'S WORTH IT. 
          BUT WE'LL HAVE A CONVERSATION WITH BEN ABOUT THAT. 
          AND SO WHEN DO YOU ANTICIPATE FORMALLY STARTING THE RATE INCREASE CONVERSATION I KNOW THERE'S A WHOLE SONG AND DANCE THAT YOU DO WITH 
          BEN. >> COUNCIL HAS FORCED US TO TALK ABOUT A RATE INCREASE BEFORE IT'S APPROPRIATE. WE'RE NOT THERE YET. AS CORY MENTIONED, NOT EVERY YEAR DO YOU SEE KIND OF A BUDGET DEFICIT BEING PROPOSED LIKE THIS. 
          BUT, YOU KNOW, WE GOT A LOT OF INVESTMENT TO MAKE AND SO WE TRY TO LAYER IT IN IN A WAY THAT WE THINK WE CAN EITHER COVER IT OR MOVE IT TO THE FOLLOWING YEAR OR MANAGE OUR BUDGET AS BEST WE CAN. BUT WHEN YOU DON'T COME IN AND AT LEAST TALK ABOUT OUR FINANCIAL, YOU KNOW, INTEGRITY AS AN ORGANIZATION EVERY COUPLE OF YEARS, WHETHER YOU NEED A RATE INCREASE OR NOT, THEN YOU'RE GOING TO FIND YOURSELVES FIVE YEARS DOWN THE ROAD ASKING FOR DOUBLE-DIGIT RATE INCREASES OR MULTI-YEAR RATE INCREASES. AND WE'RE TRYING TO AVOID THAT. SO AFTER, YOU KNOW, WE GET THROUGH THE SUMMER, WE WILL SEE WHERE WE'RE AT AND WE'LL COME TALK TO COUNCIL ABOUT WHETHER OR NOT WE THINK A RATE INCREASE IS NECESSARY. WE ARE NOT THERE YET. WE HAVE NOT SAID WE'RE COMING FOR A RATE INCREASE. WE'RE SHOWING YOU THAT WE'VE GOT A LOT OF WORK TO DO AND 
          THAT OUR FINANCIALS ARE GETTING A LITTLE TIGHTER. >> MUNGIA: THE BUDGET 
          YOU'RE PRESENTING DOES INCLUDE -- >> LAST YEAR WAS A $40 MILLION BUDGET DEFICIT AS WELL. SO IT'S NOT UNCOMMON FOR US TO PUT EVERYTHING ON THE TABLE WE THINK WE CAN MANAGE TO AND THEN MANAGE TO. 
          WE DIDN'T COME IN FOR A RATE INCREASE LAST YEAR. I MEAN, SO I HEAR YOU. 
          I WISH I COULD TELL YOU WE'RE COMING IN FOR 5.5%. WE HAVE PLACEHOLDERS FOR 
          5.5% EVERY OTHER YEAR SO WE'RE NOT -- >> MUNGIA: I HOPE YOU UNDERSTAND FROM OUR PERSPECTIVE THAT IT'S IN THE NEWS, WE GET RESIDENTS CALLING US AND THAT'S WHY WE HAVE TO ASK THESE QUESTIONS OF YOU. 
          I UNDERSTAND THAT'S PART OF YOUR PROCESS AND THAT'S WHAT YOU DO BUT THAT'S WHY SO MANY OF US ARE ASKING OUR QUESTION IS BECAUSE OUR COMMUNITY FOLKS ARE ASKING US ABOUT THAT. I GET IT. MAYBE THAT WASN'T COVERED IN THE NEWS ARTICLE SO WELL, BUT THAT'S WHY WE'RE ASKING THAT QUESTION. 
          SPEAKING OF THAT, DO YOU HAVE A SLIDE -- CAN YOU PROVIDE IT TO US EVENTUALLY WITH A GRAPH OF RESIDENTIAL AND COMMERCIAL RATE REVENUES OVER TIME AND DOCUMENTING 
          WHERE YOU HAVE THE RATE INCREASE? >> YEAH. 
          WE CAN DO THAT, COUNCILMAN. >> MUNGIA: THANK YOU. I APPRECIATE THAT. 
          LOOK, I HAD A GREAT -- A COUPLE OF WEEKS AGO AND THEY DID A FANTASTIC JOB TALKING TO RESIDENTS . I ASKED FOLKS, RAISE YOUR HAND IF YOU LEARNED SOMETHING NEW TODAY AND EVERYBODY RAISED THEIR HAND. A LOT OF FOLKS DIDN'T KNOW THAT OUR CPS PRODUCTION INCLUDES PLANTS OUTSIDE OF BEXAR COUNTY. 
          AND SO THEY WERE VERY IMPRESSED BY THAT. YOU EVEN HAD A COUPLE OF FOLKS ADVOCATING FOR NUCLEAR ENERGY, WHICH I KNOW COUNCILWOMAN SPEARS LIGHTS UP ABOUT. THAT'S REALLY BEEN OFFICIAL AND I REALLY APPRECIATE YOUR TEAM BEING OUT THERE AND HAVING REALLY GOOD INFORMATION AVAILABLE TO RESIDENTS. AND OF COURSE OSCAR IS ALWAYS THERE TO HELP OUT. 
          WE HAVE SOME REAL CRISES ON OUR HANDS SOMETIMES THROUGH OUR OFFICE AND Y'ALL HAVE FOLKS THAT SIT DOWN WITH PEOPLE AND REALLY HELP THEM, NOT JUST WITH CPS BILLS BUT OTHER THINGS GOING ON. IT MATTERS. AND OSCAR IS FROM D4, FROM SOUTH SAN AND THAT MEANS A LOT TO PEOPLE THERE. Y'ALL ARE DOING A GREAT JOB WITH THE CREW. THANK YOU VERY MUCH. APPRECIATE IT. 
          >> MAYOR JONES: COUNCILWOMAN KAUR. >> KAUR: THANK YOU, MAYOR. 
          THANK YOU SO MUCH FOR THIS PRESENTATION AND THANK YOU TO THE BOARD LEADERSHIP HERE. WE SAT ON A PANEL DURING LUNCH AND TALKED ABOUT COLLABORATION. ONE OF THE CHALLENGES I MENTIONED AS WELL, WE HAVE THE PRIVILEGE OF BEING ABLE TO OWN OUR UTILITY COMPANIES HERE. 
          IT ALSO PRESENTS A UNIQUE CHALLENGE AS WELL IN THAT YOU ALL HAVE YOUR OWN BOARD THAT IS APPOINTED AND WE HAVE OUR CONSTITUENTS THAT ARE OFTEN CALLING US, KIND OF LIKE WHAT COUNCILWOMAN ALDERETE GAVITO SAID, ABOUT CALLING US ABOUT QUESTIONS 
          [01:10:02]
AND ASKING FOR FEEDBACK AND WHAT COUNCILMEMBER MUNGIA JUST SAID. 
          WE ALL GOT THOSE CALLS. SO I THINK THE BEST THAT -- I'M GRATEFUL FOR THIS PRESENTATION AND I THINK JALEN MENTIONED IT. THIS IS A GOOD ADDITION TO OUR DISCUSSIONS BECAUSE WE NEED TO BE AS FLUENT IN Y'ALL'S BUDGET AS YOUR BOARD MEMBERS ARE. I CAN FOR SURE SAY THAT EVEN SITTING ON THIS DAIS FOR THREE YEARS THAT THAT IS NOT THE CASE. I KNOW OUR BOND RATING -- NOT MINE BUT THE CITY OF SAN ANTONIO'S. I DON'T KNOW YOUR BOND RATING. MAYBE THAT'S NOT THE LEVEL OF DETAIL THAT EVERYBODY WANTS BUT I FEEL LIKE WE NEED MORE OF THIS KIND OF INFORMATION. 
          SO I KNOW I HAD ASKED LAST TIME FOR WHAT YOUR O&M EXPENSES ARE AND I APPRECIATE BEING ABLE TO SEE THAT. I DIDN'T REALIZE 45% OF Y'ALL'S BUDGET WAS PEOPLE. TO COUNCILWOMAN CASTILLO'S POINT, WE WANT THOSE JOBS. 
          WE WANT PEOPLE TO CONTINUE TO STAY IN THOSE JOBS. THAT'S PROBABLY NOT THE PLACE THAT WE WANT YOU CUTTING MOST FROM. SO ALL OF THAT TO SAY I THINK WE NEED TO CONTINUE TO FIGURE OUT WAYS TO COLLABORATE AND MAKE SURE THAT WE CAN GET AHEAD OF THINGS AS MUCH AS POSSIBLE SO IF THERE IS A CONVERSATION HAPPENING WHERE THERE'S GOING TO BE $50 MILLION SHORTFALL RAISED THAT WE HAVE SOME TALKING POINTS AHEAD OF TIME TO SAY THIS IS WHY WE'RE SHOWING THIS. ON THAT POINT, RUDY MENTIONED LAST YEAR THAT YOU HAD A $40 MILLION DEFICIT BUDGET THAT YOU PASSED. HOW DID YOU GUYS CUT OR 
          ADJUST TO COUNT FOR THAT? >> YEAH. LAST YEAR WAS A GOOD EXAMPLE OF A LOT OF THINGS THAT WERE UNEXPECTED, INCLUDING THE ACQUISITION OF OTHER ASSETS. 
          YOU KNOW, OVER THE COURSE OF THE YEAR, AS WE PROGRESS, THERE ARE BUDGET MITIGATIONS OR ACTIONS WE TOOK THAT WE ARE CONFIDENT WOULDN'T MATERIALLY IMPACT SERVICE LEVELS. BUT THE ACQUISITION OF THE ASSETS INCREASED REVENUES. 
          SO YOU HAD AN EXISTING FLEET FORECASTED AND NEW ASSETS. A TON OF VARIABLES AND ON TOP OF THAT OUR LOCAL BASE -- WE HAD WARMER WEATHER THAN ANTICIPATED SO WE HAD SOME ADDITIONAL REVENUES THAT WE HADN'T FORECASTED. 
          IT'S CONSTANTLY A BALANCING ACT THAT WE GO THROUGH BUT GOING INTO THIS YEAR, KIND OF THE SAME THING. WE'RE HAVING THAT CONVERSATION. 
          >> KAUR: WHERE DID YOU END UP LAST YEAR? >> WE HAVEN'T DONE OUR YEAR-END FINANCIALS WITH OUR BOARD YET BUT WE FELL WITHIN THE TRIANGLE. 
          THAT'S THE GOAL, STAY WITHIN THE TRIANGLE. OUR DEBT TO CAPITALIZATION RATIO IS PROBABLY DIFFERENT THAN PLANNED BECAUSE WE ACQUIRED THE ASSETS WE JUST BOUGHT 
          ON HAND? >> WE'LL BE A LITTLE BIT OVER THAT . 
          WE GENERALLY LAND BETWEEN 150, 170 BUT A LOT OF THAT IS DEPENDENT ON WHAT OUR DAILY SPEND IS AND THE COST OF NATURAL GAS FLUCTUATES SO OUR DAILY SPENDING CAN 
          FLUCTUATE. >> KAUR: RIGHT NOW IS YOUR GOAL TO SEE WHETHER OR NOT WE CAN GET ENOUGH REVENUE THIS SUMMER TO COVER THAT $50 MILLION? 
          >> I THINK THE GOAL IS TO GET THROUGH THE SUMMER TO SEE WHAT EXISTS, YOU KNOW, THEN. IS IT $15 MILLION? IS IT MORE, LESS, EVEN? 
          WE HAVE TO GET TO THAT POINT THAT YOU TALKED ABOUT. >> KAUR: OKAY. 
          WELL, I THINK -- I HEARD THE DOCTOR SAY CLEARLY TODAY TOO THAT THERE'S NO PROPOSED RATE THAT IS BEING SHARED TODAY. I JUST THINK WE ALL FEEL LIKE IT'S GOING TO HAPPEN AND SO WE'RE TRYING TO PREPARE OURSELVES FOR WHAT MIGHT BE COMING. AND SO COUNCILMEMBER MCKEE-RODRIGUEZ'S POINT ON THE DECREASE IN COST, THAT'S AWESOME. THAT'S WHAT OUR COMMUNITY HAS BEEN ASKING FOR BUT I KNOW THE COUNCILWOMAN ASKED AND I WANTED TO DOUBLE DOWN. 
          IT WOULD BE HELPFUL TO KNOW WHAT THOSE COSTS ACTUALLY ARE. 
          HOW MUCH ARE WE SAVING IN EACH OF THOSE BUCKET ITEMS. I JUST WANTED TO DOUBLE DOWN 
          ON THAT REQUEST. >> ABSOLUTELY. >> KAUR: AND THEN FOR THE TIERED RATE STRUCTURE -- JUST BECAUSE IT'S BEEN TALKED ABOUT A LITTLE BIT TODAY. I UNDERSTAND RUDY'S POINTS. I HAVE A VERY OLD HOME AND MY ELECTRIC BILL IS INSANE DURING THE SUMMERS. AND SO I UNDERSTAND THAT CHALLENGE FOR OUR OLDER HOMES AND AREAS. HOW HAVE OTHER -- WELL, MAYBE THIS IS NOT THE RIGHT TIME IF YOU DON'T WANT TO DISCUSS IT RIGHT NOW. 
          I WOULD LIKE, MAYBE IF YOU GUYS DO COME BACK AND THERE HAS TO BE A DISCUSSION ABOUT A PROPOSED CHANGE, FOR US TO LOOK AT THAT. WE'VE NEVER HAD THAT CONVERSATION. AT LEAST I HAVEN'T BEEN A PART OF A CONVERSATION WHERE WE HAD THAT DISCUSSION AND I WOULD BE INTERESTED IN LEARNING. 
          I JUST BRIEFLY LOOKED AT WHAT AUSTIN DOES AND WHAT THEIR DIFFERENT BLOCKS ARE. 
          I'M NOT QUITE SURE HOW THAT WOULD TRANSLATE IF SOMEONE'S ON THE STEP PLAN. 
          IF WE COULD LOOK AT SOME EXAMPLES OF WHAT DIFFERENT HOMES, DIFFERENT USAGE LOOKS LIKE AND HOW THAT WOULD IMPACT THEIR BILL, I THINK WOULD MAKE IT MORE REAL FOR 
          US. >> WE CAN TAKE IT AS AN ACTION ITEM. 
          >> KAUR: I WANTED TO DOUBLE DOWN ON THE STEP REQUEST. 
          WE WOULD LIKE TO SEE HOW THEY ARE ACTUALLY IMPACTING OUR RESIDENTS. 
          [01:15:02]
          >> ABSOLUTELY. >> KAUR: OVERALL, I REALLY APPRECIATE THE PRESENTATION AND I JUST WANT TO THANK YOU. YOU DID A GREAT JOB PRESENTING TODAY TOO. I WANT TO THANK Y'ALL FOR YOUR PARTNERSHIP AND WE HOPE WE CAN FIGURE OUT A WAY TO NOT DISADVANTAGE OUR MOST UNDERSERVED COMMUNITIES. 
          >> YES, MA'AM. >> KAUR: THANK YOU. >> MAYOR JONES: 
          COUNCILWOMAN SPEARS. >> SPEARS: THANK YOU, MAYOR. 
          COUNCILMAN MUNGIA IS RIGHT, I DO LOVE NUCLEAR BUT THIS IS ONE OF MY LOVE LANGUAGES. 
          I LOVE TO TALK ABOUT ENERGY. I REALLY WANT TO SAY I'M EXCITED TO SEE YOUR COST OF SERVICE STUDY AT THE END OF SUMMER. I APPRECIATE THE APPROACH AND THE TRANSPARENCY EFFORTS HERE , I JUST REALLY APPRECIATE THAT PERSONALLY. 
          I'M EXCITED TO BE ON THE NATIONAL LEAGUE OF CITIES NATIONAL ENERGY AND ENVIRONMENTAL AND NATURAL RESOURCES COMMITTEE SO I LOOK FORWARD TO MORE TALKS WITH Y'ALL ABOUT OUR 2030 VISION PLAN. BECAUSE I'M HOPING, WE TALK ABOUT FEDERAL ACTION, THERE IS AN EXECUTIVE ORDER OUT FROM THE PRESIDENT ON DEPLOYING ADVANCED NUCLEAR REACTOR FOR NATIONAL SECURITY AND I WOULD LOVE TO SEE THAT INCORPORATED INTO OUR VISION 2030 PLAN AND BEYOND. 
          I THINK WE ARE UNIQUELY SITUATED AND HAVE OPPORTUNITIES HERE, NO ONE ELSE HAS. I REALLY APPRECIATE THAT ABOUT SAWS AND CPS AND EVERYTHING IN OUR MILITARY CITY, USA, THOSE COMPONENTS MAKE US RIGHT FOR THAT. 
          THAT BEING SAID, I HAVE SOME QUESTIONS. ON SLIDE 4, TO COUNCILWOMAN KAUR AND COUNCILWOMAN MEZA GONZALEZ'S NOTES HERE, OUR DEBT, WE ARE BELOW 70%. 
          HOW DO YOU SEE THAT SCALING DOWN OVER THE NEXT TEN YEARS? 
          >> BROADLY SPEAKING, OUR GOAL WHEN WE TALKED TO THE COMMUNITY BACK IN '22 AND BUILT OUR GENERATION PLAN AND TALKED TO OUR RATING AGENCIES, WE'RE STABLE IN THE CREDIT RATING. WE TALKED ABOUT A PLAN SO WE AT LEAST HAVE A DECADE OF HEAVY INVESTMENT AND THAT REFLECTS OUR BALANCE SHEET AND BRING IT BACK DOWN TO THE CLOSER 60% RANGE. I WOULD FORECAST THAT, YOU KNOW, EFFORT TO START HAPPENING IN THE MID 2030S. WE'RE AT 2026 RIGHT NOW, I THINK WE'RE GOING TO TAKE THAT LONG WITH THE HEAVY INVESTMENT AND KEEP TRACKING IT DOWN. I THINK SOME OF THE KEY COMPONENTS THAT WE'VE TALKED ABOUT WELL RECEIVED. IT WAS A DEMONSTRATION OF A PUBLIC CONVERSATION, DEMONSTRATION OF INPUT BEING TAKEN AND THEN WE'VE BEEN EXECUTING IT SINCE THEN WITH OUR ACQUISITIONS, ALL THE RFPS. I THINK IT'S VERY HELPFUL. 
          THE FACT THAT WE ARE STICKING TO THAT PLAN AND MY PERSPECTIVE IS THE ARRIVAL AT 70% ISN'T A SURPRISE. WE SHARE THE DISCIPLINE TO STICK TO IT AND BRING THAT 
          DOWN AS WE GET THROUGH THIS PERIOD. >> SPEARS: OKAY. 
          TACKING ON TO THAT THEN, I GUESS GOES HAND IN HAND. HOW COMFORTABLE ARE YOU WITH THE 50 DAYS OF BORROWING POWER. BUT IT SOUNDS LIKE WE HAVE A PLAN TO MAYBE -- IS THERE A WAY, IN THE SHORT-TERM, INCREASE THAT PROTECTION. 
          ACCESS TO CASH AND CREDIT. YOU SAID I THINK -- >> 150 DAYS? 
          >> SPEARS: AND WITH THE CREDIT WENT TO 200? >> YES, MA'AM. 
          >> SPEARS: WILL WE HAVE A SHORT-TERM PLAN TO INCREASE THAT 50-DAY NUMBER? 
          >> THE LIQUIDITY NUMBER ABOVE 200? NOT DELIBERATELY BUT THAT'S A FLOOR. WE FINISHED LAST YEAR PLUS 200 AND THAT'S A FUNCTION OF HOW MUCH UNUSED COMMERCIAL PAPER WE HAVE. THAT DEPENDS ON OUR REFUNDING SCHEDULE. SO WE CAN ACTUALLY RANGE ANYWHERE BETWEEN 200 AND 350 DAYS, DEPENDING ON WHERE WE ARE IN THE YEAR. I'M VERY COMFORTABLE WITH 200 BEING OUR FLOOR THAT WE TARGET, KNOWING THAT WE HAVE KIND OF THAT ROTATION. 
          >> SPEARS: SLIDE 5. YOU MENTIONED ON CUSTOMER GROWTH, IT'S $290 MILLION 
          GOES TO NEW CUSTOMERS. WHERE DOES THE OTHER 39 GO? >> A LOT OF OTHER WORK THAT IS AROUND CIVIC IMPROVEMENTS, CIVIC UPGRADES WHEN WE MOVE OUR EQUIPMENT. 
          I'LL HAVE TO GET YOU FURTHER DETAIL, ACTUALLY. YEAH. 
          IT'S ALSO NEW STREETLIGHTS, THINGS LIKE THAT THAT YOU EXPECT A COMPANY, NEW 
          DIVISION, THINGS LIKE THAT. >> SPEARS: I SAW YOUR ASTERISK AT THE BOTTOM. 
          [01:20:03]
          CAN YOU HELP ME UNDERSTAND. >> THAT'S ACTUALLY A GREAT STORY. 
          SO WHILE THIS NUMBER IS $1.7 BILLION, I BELIEVE IT SAYS $118 MILLION OF THAT IS FUNDED THROUGH CONTRIBUTION AND CONSTRUCTION. SO AN EXAMPLE OF THIS WOULD BE, YOU KNOW, ANY NONSTANDARD UNIQUE STUFF THAT A DEVELOPER FOR A RESIDENTIAL COMMUNITY NEEDS TO PUT IN. THEY CONTRIBUTE UP FRONT THAT CASH. SO IT'S REALLY AN OFFSET TO THE EXPENSE SIDE THAT THE BROADER CUSTOMER BASE IS NOT PAYING FOR. AND THAT IS SOMETHING NOT OFTEN TALKED ABOUT BUT WE DID WANT TO NOTE THAT. WHILE IT IS 1.7, THERE'S 118 
          COMING IN THROUGH THOSE CONTRIBUTIONS. >> SPEARS: THEY ARE 
          DEVELOPERS FRONTING THE COST ON THEIR DEVELOPMENT? >> YEAH. 
          THAT'S AN ANNUAL NUMBER. >> SPEARS: I BET THEY DON'T LIKE THAT. 
          >> I DON'T KNOW IF THEY LOVE IT. I WON'T SPEAK FOR THEM BUT 
          IT'S NECESSARY AND WE HAVE DOING THAT FOR YEARS. >> SPEARS: OFF-SYSTEM SALES. I WAS GLAD TO SEE A THIRD OF THAT NEW INVESTMENT IN THOSE NEW PLANTS WAS FROM OFF-SYSTEM SALES. WE REPAID THE INVESTMENT 
          THERE A THIRD ALREADY? >> THE CORPUS CHRISTI AND LAREDO PLANTS WERE ABOUT A THIRD. THE ONES WE JUST BOUGHT, ABOUT $30 MILLION ON IT BUT WE ANTICIPATE 100-PLUS MILLION FROM THAT GOING FORWARD. 
          SIGNIFICANT. >> SPEARS: SO I SEE THAT AS HEDGING OUR BETS SO WE CAN SELL OFF-SYSTEM SALES. OUR TRANSMISSION INVESTMENT WILL HELP US DO MORE 
          OFF-SYSTEM SALES? >> I THINK THE BROADER BUSINESS CASE FOR THE ASSET PURCHASE WAS -- IT IS SIGNIFICANTLY LESS TO PURCHASE ASSETS WITH A LONG, USEFUL LIFE. CHECK THERE. THE SECOND PART OF THAT IS IT WAS FOR GROWTH WE ANTICIPATED HAVING. WE'RE GOING TO GROW INTO THAT. THE REAL BENEFIT IS, WELL, LET'S SAY WE GROW INTO THAT IN THREE TO FIVE YEARS. WE'RE GETTING THIS BENEFIT RIGHT NOW TODAY THROUGH THE WHOLESALE MARKET, WHICH IS I THINK KIND OF UNDERPINS WHY THIS IS SUCH A GOOD TRANSACTION FOR THE COMMUNITY. BECAUSE YOU'RE ABLE TO KIND OF MONETIZE THE ASSET IN THE NEAR TERM BUT THEN YOU NEED THEM FOR HERE. 
          FOR SAN ANTONIO AS WE GROW. THESE ARE ASSETS WE WILL USE MOSTLY FOR OUR LOCAL GROWTH 
          OVER THE NEXT 25-PLUS YEARS. >> SPEARS: ON THE OUTAGES, ARE WE PREPARED -- LET'S SAY WE HAVE ANOTHER URI STORM. ARE WE PREPARED, WE HAVE ENOUGH STORAGE CAPACITY OR I GUESS WE'RE GOING TO BE DOING A LOT OF OFF-SYSTEM SALES. 
          CAN WE MAKE MONEY LIKE AUSTIN AND CORPUS DID NOW, SHOULD SOMETHING LIKE HAPPEN 
          AGAIN? >> I BROADLY SAY WE'RE WELL POSITIONED FROM WINTER STORM URI, NOT ONLY THROUGH THE INVESTMENTS WE HAVE MADE, INVESTMENTS IN STORAGE, THE INVESTMENTS TO, YOU KNOW, ALL OF OUR EQUIPMENT. TO THE EXTENT THERE ARE 
          WHOLESALE OPPORTUNITIES, WE'LL BE THERE FOR IT. >> SPEARS: I HEARD YOU SAY THAT WE WERE INVESTING MORE IN WIND AND SOLAR BUT IT WAS MY UNDERSTANDING THAT MARKET WAS SATURATED. IS THAT NOT THE CASE? THAT'S WHY WE'RE MOVING 
          TOWARD GAS? >> WE'RE INVESTING ACCORDING TO THE PLAN. 
          THE AMOUNT OF WIND AND SOLAR IS IN THAT GENERATION PLAN. I DON'T THINK WE'RE OVERINVESTING. I DON'T KNOW IF YOU WANT TO SPEAK TO THE MARKET IN TERMS 
          OF SATURATION. >> SURE. RELATIVE TO MARKET SATURATION OF AVAILABLE RESOURCES, IF YOU LOOK AT THE ERCOT, THE TOP TWO BUCKETS OF RESOURCES ARE ACTUALLY SOLAR AND BATTERY STORAGE. 
          AND THAT'S BEEN THE CASE FOR A WHILE. THEY ARE LOW-COST RESOURCES BUT THEY ALSO CAN BE BROUGHT TO MARKET FAIRLY QUICKLY. THE BATTERY TECHNOLOGIES ARE CONTINUING TO EVOLVE AND WE'RE SEEING RAPID ADOPTION OF BATTERIES. 
          AND SO WE ACTUALLY ARE GETTING -- WE HAVE GOTTEN VERY ROBUST RESPONSES FROM PROVIDERS AND I WILL SAY FOR SOME OF THE RFPS, WE'RE LOOKING AT NEW RESOURCES AS 
          WELL AS EXISTING RESOURCES. >> SPEARS: OKAY. AND THEN I GUESS THIS ONE MAY BE FOR CORY. HAVE OUR OFF-SYSTEM SALES REVENUES MATCHED OUR 
          PROJECTION FROM YEARS PAST? ARE WE EXCEEDING THAT? >> YEAH. 
          THIS PAST YEAR, AS RUDY MENTIONED, THE FORECAST WITHOUT THE ACQUISITION WAS ACTUALLY UNDERPLANNED. BUT WITH THE ACQUISITION, THERE'S AN EXTRA $30 MILLION. THE PREVIOUS TWO YEARS WERE NOTABLY OVERPLANNED, WHICH 
          WAS A BENEFIT FOR ALL OF US. >> SPEARS: THAT'S WONDERFUL. 
          [01:25:02]
AND THEN CAN YOU TELL ME ABOUT OUR ACCOUNTS RECEIVABLE. 
          DO YOU HAVE THAT NUMBER? IT'S AN INDICATOR TO ME ABOUT THE POSITIONING OF OUR RESIDENTS AND HOW THEY'RE DOING. AND WHAT IS OUR COLLECTION 
          RATE? >> YEAH. SO THEY DO A GREAT JOB BUT GENERALLY THE TRENDS HAVE BEEN POSITIVE. WE'VE BEEN CHIPPING AWAY AT IT FOR THE LAST HANDFUL OF YEARS. IT'S ACTUALLY A POSITIVE STORY THAT WE TELL OUR RATINGS AGENCIES. ONE THINGS THEY LOOK AT IS NOT JUST THE OUTSTANDING BALANCE BUT ARE YOU WORKING IT DOWN. 
          AND THE SECOND POINT IS -- OKAY. SO SINCE LAST MONTH WE HAD A 9% REDUCTION. WE'RE NOW AT $106 MILLION OF PAST DUE ACCOUNTS FROM A PEAK OF OVER $200 MILLION. IT'S BEEN SIGNIFICANT. I THINK ONE OF THE COOLEST THINGS THAT DEANNA'S TEAM HAS BEEN ABLE TO DO IS ENSURE WE'RE PUTTING FOLKS ON PLANS THEY CAN MEET. WHICH MEANS WE HAVE A HIGH STICK TO IT RATE, WHICH IS EXCELLENT. SO THAT STAT THAT WE SHARE, THE RATING AGENCIES LOOK TO COMMUNITY AND MAKE SURE THEY CAN KEEP PAYING WHAT THEY CAN. 
          >> SPEARS: I KNOW YOU MAY NOT HAVE IT TODAY BUT I'D LIKE TO SEE THE MIX OF THAT WITH COMMERCIAL AND RESIDENTIAL. I HAVE GOTTEN A COUPLE OF APARTMENT COMPLEXES THAT HAVE REACHED OUT THAT ARE OVERDUE BY A SIGNIFICANT AMOUNT. I WOULD LIKE TO SEE THAT NUMBER. 
          THANKS FOR ALL YOU'RE DOING AND YAY ENERGY. THANK YOU. 
          >> APPRECIATE IT. >> MAYOR JONES: COUNCILWOMAN ALDERETE 
          GAVITO. >> GAVITO: THANK YOU. I HAD FAILED TO MENTION ON SLIDE 6 I DO THINK YOU ALL ARE BEING STRATEGIC IN THE FORECASTED CAPITAL. 
          WHICH I KNOW Y'ALL HAVE WORKED ON IN PARTNERSHIP WITH CITY COUNCIL. 
          BUT TO ME IT'S IMPORTANT TO HIGHLIGHT BECAUSE PEOPLE MAY NOT CONNECT THE DOTS ON HOW YOU ALL BEING STRATEGIC HERE HELPS LOWER CUSTOMER BILLS IN THE FUTURE. 
          JUST WANTED TO HIGHLIGHT AND CALL THAT OUT AND THANK Y'ALL FOR YOUR WORK THERE. 
          >> THANK YOU. >> GAVITO: THANK YOU. >> MAYOR JONES: THANKS, CORY AND TEAM FOR COMING ANSWERE QUESTIONS. FRANKLY, NOT WHAT ANYBODY WOULDN'T EXPECT OUT OF THE NORM WHEN THE OWNERS OF THE RESOURCE HAVE QUESTIONS ABOUT THE RESOURCE IS BEING UTILIZED. CERTAINLY NOT -- I WOULD PUSH BACK ON THE CHARACTERIZATION OF FORCING THE CONVERSATION BUT RATHER MAKE THE CONVERSATION HAPPEN AT A TEMPO AND LEVEL OF FIDELITY AS ELECTED OFFICIALS . LET ME ALSO MAKE SURE, YOU KNOW, WHEN I MOVED TO THIS APPROACH VERSUS THE MUNICIPAL UTILITIES COMMITTEE APPROACH, IT WAS REALLY TO ENSURE THAT THE FULL BODY IS MORE CONVERSANT IN THESE STRATEGIC ADVANTAGES, WHICH IN FACT CPS AND SAWS ARE. I'M THANKFUL FOR THE VERY THOUGHTFUL QUESTIONS HERE TODAY. FRANKLY, WHEN YOU JUST LOOK AT HOW QUICKLY THE CPS BUDGET HAS GROWN OVER THE LAST FIVE YEARS, THAT IS IN FACT TO MEET THE DEMAND AND TO BE STRATEGIC HAS BEEN ALLUDED TO HERE. 
          ALL THE MORE REASON FOR THIS BODY TO BE ABLE TO VERY QUICKLY ANSWER THE QUESTIONS IN A VERY SIMPLE WAY ABOUT WHAT IS GOING ON IN THEIR COMMUNITY. 
          AND FRANKLY WHO IS DRIVING THE COST AND WHO WAS NOT. I KNOW THAT GETS INTO OUR NEXT CONVERSATION. IT ALSO ALLOWS US TO TELL THE GOOD STORIES ABOUT, FOR EXAMPLE, THE RECENT ACQUISITION. WE GOT A LOT MORE POWER AT A CHEAPER RATE AND IT'S ONLINE FASTER, WHICH MEANS WE'RE ALREADY MAKING MONEY OFF OF IT. WE NEED TO BE ABLE TO TALK ABOUT THOSE THINGS TO OUR COMMUNITY AS, FRANKLY, WINS. I THINK WHAT YOU'RE HEARING HERE AS WELL THOUGH IS THE TENSION BETWEEN, FRANKLY, THE VERY GOOD WORK THAT CPS DOES TO KEEP OUR RATES LOW. 
          AND THEY ARE THE MOST COMPETITIVE, SOME OF THE MOST COMPETITIVE IN THE ENTIRE STATE. HOWEVER, WHEN IT IS STILL TOO HIGH, SEEMINGLY, FOR TOO MANY IN OUR COMMUNITY, THAT'S THE RUB. ALL THE MORE REASON THEN FOR US TO BE ABLE TO TELL THE STORY ABOUT WHY WE'VE GOT TO MAKE THESE INVESTMENTS, NOT ONLY TO KEEP UP WITH GROWTH BUT ALSO FOR MAINTENANCE AND JUST OVERALL PUBLIC SAFETY AS WELL. I WANT TO REITERATE THE ASK FOR THE BIMONTHLY UPDATE ON THE TECHNOLOGY SOLUTION, THAT HAS TAKEN A LITTLE BIT. SHORT UPDATES AT EACH OF THE --S WOULD BE APPRECIATED TO THE BODY. THANK YOU. 
          I WANT TO REVISIT ONE POINT, ALANNA. WE HAD A MORE FULSOME CONVERSATION ABOUT NOT ONLY DOES THIS PLAN, THIS BUDGET HELP US MEET OUR CLIMATE ACTION ADAPTATION GOALS. HOWEVER, THERE ARE SOME MODIFICATIONS AND THE APPROACH HAVING TO BE MADE IN LIGHT OF SOME OF THE FEDERAL CHANGES, RIGHT? 
          [01:30:03]
SO WHEN WE SPOKE WE TALKED ABOUT A COAL PLANT HAVING TO STAY ON LONGER BASED ON FEDERAL GUIDANCE AS WELL AS WE ALSO TALKED ABOUT HAVING TO FRONTLOAD SOME CERTAIN INVESTMENTS. WE MADE THOSE BEFORE SOME OF THE INCENTIVES EXPIRED. 
          I APPRECIATE THE BUDGET STILL ALLOWS US TO MEET OUR PLAN BUT IF YOU WANTED TO PROVIDE -- IF YOU WANTED TO SPEAK NOW OR PROVIDE IT IN WRITING THE WAYS IN WHICH WE'RE HAVING TO MEET THOSE GOALS AT A HIGHER COST IN LIGHT OF FEDERAL CHANGES, THEN WE WOULD VERY MUCH APPRECIATE THAT. BECAUSE WE SEE THIS NOT ONLY IN TERMS OF COST BUT ALSO THE OTHER CHANGES THAT ARE HAPPENING AT THE EPA THAT ARE THEN MAKING OUR REVISIONS TO THE CLIMATE ACTION ADAPTATION PLAN ALL THE MORE IMPORTANT, AS WELL AS WHEN WE THINK ABOUT WHAT THE REVISIONS TO THE ECONOMIC DEVELOPMENT PLAN, ALEX'S TEAM, WHAT THAT LOOKS LIKE AND HOW WE ARE ENGAGING IN BUSINESSES THAT ARE POTENTIALLY LOOKING AT COMING TO SAN ANTONIO AND THE ASKS THAT WE ARE MAKING AND SHOULD BE MAKING IN LIGHT OF SOME OF THE CHANGES THAT WE'RE NOT GOING TO BE ABLE TO ACCOUNT FOR ALL OURSELVES BUT THAT HAVE REAL SIGNIFICANT PUBLIC HEALTH AND COST ISSUES IF WE DON'T WORK TO ADDRESS THEM. 
          IF YOU WANTED TO SPEAK TO MORE OF THE FEDERAL STUFF, ALANNA, YOU'RE FREE TO. 
          >> THANK YOU, MAYOR. I THINK YOU CHARACTERIZED THEM VERY WELL. 
          THE POINT AROUND OUR RENEWABLE ADDITIONS, WE HAVE A LOT OF TAX INCENTIVES THAT ARE GOING TO SUNSET AND RECOGNIZING THERE WILL BE A POTENTIAL INCREASE IN THE COST OF RENEWABLE ENERGY IN THE VERY NEAR FUTURE. WE MADE THE STRATEGIC DECISION TO GO AHEAD AND BRING SOME OF THOSE REQUESTS FOR PROPOSAL INTO THE MARKET RIGHT NOW. AGAIN, WE'RE SEEING VERY COMPETITIVE PRICING. 
          WE WANTED TO TAKE ADVANTAGE OF THAT OPPORTUNITY. AND CERTAINLY AM PREPARED TO PROVIDE A WRITTEN RESPONSE ON ANY OF THESE TOPICS FOR YOU ALL RELATIVE TO THE 
          FEDERAL POLICY PERSPECTIVE. >> MAYOR JONES: THANKS FOR THAT, ALANNA. 
          AS A REMINDER FOR THE GROUP AND FOR EVERYBODY WATCHING, WHEN STORM URI HAPPENED, HOW 
          MUCH DID YOU HAVE TO DIP INTO THE STRATEGIC RESERVE? >> I DIDN'T CATCH THE ENTIRE 
          QUESTION. WHAT TIME PERIOD? >> MAYOR JONES: STORM URI. 
          >> STORM URI WAS UNIQUE. THE WAY WE ACTUALLY FINANCED THAT WAS THROUGH THE REGULATORY ASSET THAT OUR BOARD APPROVED. WE ENDED UP PAYING $415 MILLION. WE ISSUED DEBT FOR THAT AND THEN THE COST RECOVERY COMPONENT OF THAT ON EACH CUSTOMER'S BILL WAS $1.20. IT HAS GONE DOWN NOW BECAUSE WE HAVE MORE CUSTOMERS. WE RULED NOT TO TOUCH OUR CASH BALANCES AT THE MOMENT AND THEN WE WERE ABLE TO MANAGE IT THROUGH THAT MECHANISM. 
          THIS CITY COUNCIL WAS VERY HELPFUL IN PUTTING THE STRUCTURES IN PLACE TO ENABLE THAT. AND THEN, YEAH. SO IT WAS SOMETHING THAT WE THEN SUBSEQUENTLY THE STRATEGY, MADE SURE WE HAD THE APPROPRIATE SHORT-TERM LIQUIDITY AVAILABLE. WE STRENGTHED THOSE NUMBERS SINCE THAT TIME TO MAKE SURE 
          THAT JUST IN CASE WE HAD SOMETHING THERE. >> MAYOR JONES: THANKS, CORY. APPRECIATE THAT. I THINK YOU PROBABLY HEARD LOUD AND CLEAR THE INTEREST IN AVOIDING A RATE INCREASE AS MUCH AS POSSIBLE. 
          WHEN WE THINK OF THE $50 MILLION, THAT'S 1%, RIGHT? SO 1% SEEMS, EVEN ONE'S OWN PERSONAL BUDGET, MANAGEABLE. WOULD WELCOME, AS WE GET CLOSER TO THAT, UNDERSTANDING IF WE DID WANT TO LOOK AT TAPPING INTO THE ACCESS TO CASH AND CREDIT WHICH APPEARS TO BE ALMOST $3 BILLION OR JUST EATING THAT VIA THE $5 BILLION BUDGET. WHAT ARE THE RAMIFICATIONS OF DOING THAT. OBVIOUSLY, GIVEN THE SENSITIVITY NOT ONLY TO THE POTENTIAL RATE INCREASE HERE AS WELL AS ON THE SAWS' SIDE AND JUST AS WE SEE THE IMPLEMENTATION OF THE ONE BIG BEAUTIFUL BILL THAT IS IMPACTING OUR MOST VULNERABLE. WE WANT TO BE ABLE TO SAY THAT WE TRIED TO SHOULDER AS MUCH OF THIS AS POSSIBLE. THANK YOU VERY MUCH. 
          WE WILL NOW MOVE ON TO THE DATA CENTER DISCUSSION. MARIA, OVER TO YOU. 
          >> VILLAGOMEZ: THANK YOU, MAYOR. SO JUST TO PROVIDE A LITTLE BIT OF CONTEXT TO THIS PRESENTATION, COUNCILMEMBER RAY GALVAN SUBMITTED A CCR TO SUBMIT TO CITY COUNCIL A SCOPE TO REGULATE DATA CENTERS. 
          SPECIFICALLY THE CCR IDENTIFIED A NUMBER OF QUESTIONS THAT THE CCR WANTED US TO ADDRESS. NUMBER ONE 
          [01:35:05]
ANTONIO. NUMBER TWO, HOW WILL THE GROWTH OF DATA CENTERS IN SAN ANTONIO IMPACT OUR NATURAL RESOURCES. NUMBER THREE, THE POLICY TOOLS THAT SAN ANTONIO HAS TO ADDRESS THE GROWTH OF THOSE DATA CENTERS. 
          SO OUR GOVERNANCE COMMITTEE REFERRED THE CCR TO THE PLANNING AND COMMUNITY DEVELOPMENT COMMITTEE. WITH OUR UTILITY BRIEFINGS ALREADY SCHEDULED IN B SESSIONS, WE SCHEDULED THIS JOINT BRIEFING FROM CPS, SAWS FOR DATA CENTER, AND ALSO WE HAVE ADDED OUR CITY'S DEVELOPMENT SERVICES DEPARTMENT TO ADDRESS SOME OF THE POLICY TOOLS AROUND THE GROWTH OF DATA CENTERS. SO THE GOAL OF TODAY'S BRIEFING IS TO PROVIDE YOU WITH A COMPREHENSIVE OVERVIEW AND BRIEFING OF THE DATA CENTERS TO FACILITATE AND PROVIDE BACKGROUND INFORMATION FOR THE CITY COUNCIL. SO THAT'S WHAT WE HOPE TO DO TODAY. 
          SO THIS IS A THREE-PART PRESENTATION. WE'LL START CONSIDER CPS ENERGY FOLLOWED BY SAWS AND THEN OUR CITY'S DEVELOPMENT SERVICES DEPARTMENT. 
          WITH THAT, I'M GOING TO TURN IT OVER TO CPS. >> GOOD AFTERNOON, MAYOR AND COUNCIL. AGAIN, I'M ELENA, THE CHIEF STRATEGY OFFICER FOR CPS ENERGY. THANK YOU ALL FOR THE OPPORTUNITY TO BRIEF YOU ON THE USE OF ADVANCED COMPUTING TECHNOLOGIES AND THE DEVELOPMENT THAT'S OCCURRING REALLY IN OUR WORLD AND IN OUR INDUSTRY. THE TOPIC OF LARGE LOAD AND DATA CENTERS HAVE BECOME A KEY MATTER FOR US AS A SOCIETY AND A COMMUNITY. 
          THE RAPID EXPANSION OF ADVANCED COMPUTING HAS MANY BENEFITS EVIDENCED BY ITS RAPID ADOPTION AND USE. AT THE SAME TIME, HOWEVER, WE DO UNDERSTAND THAT THERE ARE A NUMBER OF IMPORTANT CONSIDERATIONS FOR BOTH ENERGY, WATER, AND OTHER ASPECTS OF OUR SOCIETY. SO TODAY OUR OBJECTIVE IS FOUR-FOLD. 
          I WANT TO MAKE SURE THAT WE PROVIDE AN OVERVIEW OF THE LARGE-LOAD GROWTH THAT'S OCCURRING IN SAN ANTONIO. I KNOW THAT THIS BRIEFING IS ABOUT DATA CENTERS, AND THAT IS THE MAJORITY OF THE LARGE-LOAD GROWTH IN SAN ANTONIO. 
          BUT DID WANT TO HIGHLIGHT WE HAVE OTHER LARGE LOADS IN THE FORM OF INDUSTRIAL AND COMMERCIAL CUSTOMERS THAT ARE EXPANDING IN OUR SERVICE TERRITORY. 
          WE ALSO WANT TO SHARE THE IMPACTS AND BENEFITS. FAIRNESS IS CRITICAL AND WE UNDERSTAND THE IMPORTANCE OF ENSURING EVERYONE PAYS THEIR FAIR SHARE AND PAYS THEIR FAIR WAY SO THAT LARGE USERS ARE NOT COST SHIFTING ASPECTS OF THEIR CONNECTION AND OPERATION ON TO SMALLER CUSTOMERS. AND THEN WE ALSO WANT TO TALK ABOUT NEW SOLUTIONS THAT WE'RE EXPLORING AND IMPLEMENTING TO MEET THIS GROWING DEMAND. FIRST UP, I KNOW THERE ARE A LOT OF WORDS ON THIS SLIDE BUT WE WANTED TO TOUCH ON SORT OF THE BACKDROP. WE WANTED TO JUST FIRST REMIND EVERYONE THAT WE ARE, YOU KNOW, THE ELECTRIC PROVIDER FOR THIS REGION. 
          AS A RESULT OF THAT, WE'RE LEGALLY OBLIGATED TO SERVE. WHEN CUSTOMERS COME TO OUR SERVICE TERRITORY AND REQUEST SERVICE, WE ARE OBLIGATED TO SERVE. 
          SO ADDITIONALLY, YOU KNOW, WE ARE WORKING ON A NUMBER OF MEASURES ALONGSIDE ERCOT AND THE PUC TO ADDRESS THE DEMAND GROWTH THAT WE'RE SEEING. 
          JUST FOR A MOMENT OF CLARITY HERE, WHEN WE TALK ABOUT LARGE LOAD, WE USE A THRESHOLD HERE AT CPS ENERGY OF 40 MEGAWATTS. I DON'T WANT TO GET TOO JARGON-Y WITH YOU ALL. A MEGAWATT IS EQUIVALENT TO ABOUT 250 HOMES. 
          WHEN WE THINK ABOUT A 40 MEGAWATT CUSTOMER, THAT'S ABOUT THE EQUIVALENT ENERGY USE OF 10,000 HOMES. AT ERCOT, ERCOT BECAUSE THEY PLAN FOR A MUCH LARGER PORTION OF THE STATE OF TEXAS, THEY ACTUALLY DRAW THE THRESHOLD AT 75 MEGAWATTS. SO THAT'S KIND OF OUR OBLIGATION TO SERVE AND WHO THESE CUSTOMERS ARE. WE CONTINUE TO INVEST IN OUR SYSTEM. 
          YOU KNOW, WE'RE FOCUSED ON MAKING SURE THAT WE'RE PLANNING FOR GROWTH AND THAT WE'RE ENSURING THAT WE HAVE ALL OF THE NECESSARY RESOURCES TO MEET GROWTH FOR THE FUTURE. I DO WANT TO TOUCH FOR A MOMENT ON WHO PAYS FOR WHAT. 
          CORY WENT THROUGH, IN HIS PRESENTATION, A NUMBER OF ASPECTS OF COST OF SERVICE AND TRANSMISSION AND RETAIL. I WANTED TO BREAK THIS DOWN IN A SIMPLE TERM. 
          WHEN WE HAVE CUSTOMERS CONNECT TO OUR SYSTEM, THERE ARE REALLY THREE GROUPS OF INFRASTRUCTURE THAT ELECTRIC CUSTOMERS ARE UTILIZING OR TAKING ADVANTAGE OF. 
          THE FIRST IS SORT OF THE STATE SYSTEM. OUR TRANSMISSION NETWORK. 
          THIS IS AKIN TO AN INTERSTATE SYSTEM. AND EVERYONE IN ERCOT CONTRIBUTES TO PAYING FOR THAT INFRASTRUCTURE. AND THEY ULTIMATELY ARE CHARGED BASED ON THEIR USE OF THAT SYSTEM. MORE LOCALLY, YOU CAN THINK ABOUT CPS ENERGY BEING KIND OF THE LOCAL ROADS IN INFRASTRUCTURE. 
          THAT'S WHERE OUR RETAIL RATES AND OUR COST OF SERVICE COME INTO PLAY. 
          SO CUSTOMERS WITHIN OUR RETAIL SERVICE TERRITORY, THEY PAY THEIR SHARE OF THE 
          [01:40:01]
COST ASSOCIATED WITH THE SYSTEM THAT WE USE TO DELIVER RETAIL SERVICE. 
          AND THEN SPECIFICALLY CUSTOMERS PAY FOR THEIR DRIVEWAY. 
          SO THERE'S AN AMOUNT OF COST ASSOCIATED WITH CONNECTING UP TO THE SYSTEM. 
          LARGE-LOAD CUSTOMERS PAY FOR THEIR CONNECTIONS. JUST WANTED TO GIVE THAT BACKDROP AND I MAY REFERENCE BACK TO THAT CONCEPT AROUND WHAT BUCKET OF COSTS ARE WE TALKING ABOUT. SO AS WE THINK ABOUT DATA CENTERS, FIRST UP WE'VE HAD DATA CENTERS IN OUR SERVICE TERRITORY FOR MANY YEARS. WHAT WE'RE SEEING IS AN EXPANSION OF THE USE OF ADVANCED COMPUTING TECHNOLOGY AND IT'S REALLY IN SERVICE TO MANY INDUSTRIES. HEALTHCARE ORGANIZATIONS, FINANCIAL INSTITUTIONS, ALL OF US IN OUR PERSONAL LIVES ARE UTILIZING, WHETHER WE KNOW IT OR NOT, ADVANCED COMPUTING TECHNOLOGY, AND IT IS DRIVING ELECTRIC DEMAND. 
          INDUSTRIAL AND TECHNOLOGY COMPANIES, MEDIA AND ENTERTAINMENT IS SOMETHING THAT TOUCHES ALL OF US AND CERTAINLY OUR CHILDREN. EVERYTHING FROM CONTENT DELIVERY TO VIDEO STREAMING. BUT THERE'S A TREMENDOUS AMOUNT OF INVESTMENT AND USE OF ADVANCED COMPUTE TECHNOLOGY ALSO IN RESEARCH AND EDUCATIONAL INSTITUTIONS. ARTIFICIAL INTELLIGENCE IS BEING POINTED AT SOME OF THE MOST COMPLEX AND CHALLENGING PROBLEMS OF OUR SOCIETY AND THIS IS BEING USED TO ADVANCE SOLUTIONS AND IN SOME CASES DECADES SOONER THAN WE COULD WITHOUT IT. 
          AND THEN OF COURSE BEING MILITARY CITY, USA, COMMAND CONTROL SECURITY AND INTELLIGENCE ARE LEVERAGING ADVANCED COMPUTING TECHNOLOGY. 
          SO SWITCHING TO WHAT OUR DEMAND OUTLOOK LOOKS LIKE HERE IN SAN ANTONIO. 
          I KNOW THIS IS A BIT OF A CHART HERE TO DIGEST BUT LET ME ORIENT YOU. 
          HERE IN SAN ANTONIO AND IN CPS ENERGY SERVICE TERRITORY, WE HAVE CURRENTLY 59 PROJECTS THAT ARE IN THAT LARGE-LOAD CONSTRUCT. THESE ARE PROJECTS THAT ARE IN EXCESS OF 40 MEGAWATTS AND THEY'RE IN VARIOUS STAGES OF PROBABILITY. 
          SO IF YOU WORK FROM THE BOTTOM UP, ACTUALLY, THE BOTTOM OF THIS FUNNEL REPRESENTS HIGHLY PROBABLE PROJECTS. THESE ARE PROJECTS THAT HAVE SITE CONTROL, OPERATIONS OCCURRING, AND THEY'RE UTILIZING POWER. 
          WE'RE IN THE CONTRACTING PHASE FOR ANOTHER 1400 MEGAWATTS. 
          AS YOU MOVE UP TO FEASIBILITY STUDY AND NEW CUSTOMER REQUESTS, THOSE PROJECTS ARE MUCH MORE SPECULATIVE. I UNDERSTAND THESE NUMBERS ARE VERY LARGE BUT THIS IS -- WE'RE SORT OF A MICROCOSM OF WHAT'S HAPPENING IN THE UNITED STATES AND CERTAINLY IN TEXAS. 
          NOT ALL OF THESE PROJECTS ARE GOING TO BE BUILT AND WE ARE BEING VERY THOUGHTFUL ENSURING THAT WE'RE PLANNING, NOT ONLY FOR RELIABILITY OF OUR SYSTEM, BUT ALSO WORKING IN CONJUNCTION WITH ERCOT TO ENSURE ALL OF THE NECESSARY STEPS ARE BEING TAKEN FROM A PLANPLANNING PERSPECTIVE TO ENSURE RELIABILITY. 
          THIS IS A GRAPHICAL VIEW OF WHERE THESE LARGE-LOAD PROJECTS ARE. 
          THE BLUE DOTS ARE IN THOSE MORE PREDICTABLE PHASES AND THE RED IS MORE IN THE FEASIBILITY STUDY. WE DO HAVE PROJECTS INSIDE AND OUTSIDE THE CITY LIMITS. 
          IF YOU ZOOM OUT, WE'RE SEEING A LOT OF GROWTH. AND THROUGHOUT THE STATE, ERCOT IS EXPERIENCING A SIGNIFICANT AMOUNT OF LARGE-LOAD GROWTH AND CONSIDERABLE AMOUNT OF THE LARGE-LOAD GROWTH, APPROXIMATELY 70% OF IT IS DATA CENTER SUPPORT. SO AS WE TALK ABOUT WHAT ARE THE IMPACTS AND BENEFITS OF LARGE-LOAD CUSTOMERS. I AM GOING TO BE KIND OF SPECIFIC TO THE USAGE CHARACTERISTICS OF THESE LARGE-LOAD CUSTOMERS. THEY BRING CAPITAL TO HELP US INVEST AND STRENGTHEN OUR SYSTEM. BUT THEY ALSO BRING A LARGE AMOUNT OF CONSUMPTION ON OUR EXISTING SYSTEM. AS WE SEE LARGE CUSTOMERS COME ON TO THE SYSTEM -- I'LL TALK TO YOU ABOUT INDUSTRIAL AND COMMERCIAL USE OF THE SYSTEM AND HOW THEY PAY FOR THE SYSTEM. THEY HELP US TAKE OUR FIXED COST -- AND A LOT OF THE COSTS THAT WE HAVE AT CPS ENERGY ARE TRULY FIXED COSTS. THEY ARE THE NETWORK AND THE SYSTEMS THAT WE NEED TO MAINTAIN IN ORDER TO DELIVER ELECTRICITY TO OUR CUSTOMERS. 
          SO AS THAT REVENUE GROWS, THAT USAGE GROWS, THOSE FIXED COSTS CAN BE SPREAD AMONGST MORE CUSTOMERS AND MORE KILOWATT HOURS. THAT ACTUALLY HAS A MUTING FACTOR IN RATES ACROSS THE ENTIRE CUSTOMER BASE. FOR LARGE CNI CUSTOMERS, RELIABILITY IS VERY IMPORTANT. PART OF WHY WE AS A UTILITY ARE SOUGHT AFTER ARE OUR HIGH LEVELS OF RELIABILITY. THESE CUSTOMERS ARE BRINGING ADDITIONAL INFRASTRUCTURE. THEY'RE, IN MANY CASES, BRINGING BACKUP GENERATION, 
          [01:45:01]
WHICH HELPS SUPPORT THE BULK ELECTRIC SYSTEM. WHILE I KNOW THERE'S GOING TO BE A LOT OF QUESTIONS TODAY, LIKELY ABOUT WHAT TYPES OF FUEL ARE CUSTOMERS OF THIS NATURE USING, MANY OF THESE CUSTOMERS HAVE STATED CORPORATE OBJECTIVES OF MIGRATING TO MORE AND MORE CLEAN ENERGY OVER TIME. AND SO THERE WILL BE ANOTHER PLACE FOR US TO BE ABLE TO HELP WITH TRANSITION TO CLEANER ENERGY. 
          FOR SMALL BUSINESSES, RELIABILITY, THE RATE-SUPPRESSIVE BENEFITS, BUT ALSO THESE FACILITIES REPRESENT A LOT OF CONSTRUCTION JOBS. 
          I KNOW THERE'S A LOT OF DISCUSSION AROUND WHAT ARE THE PERSISTING JOBS BUT FOR THE NEXT DECADE, WE'RE GOING TO SEE A LOT OF CONSTRUCTION ACTIVITIES IN THIS INDUSTRY. 
          AND THAT HELPS SMALL BUSINESSES AND ALSO LOCAL PARTNERSHIPS. 
          THE REVENUE THAT THESE CUSTOMERS WILL BRING, NOT ONLY BENEFIT THE UTILITY CUSTOMERS BUT THEY DO CONTRIBUTE REVENUE THAT SUPPORTS CITY SERVICES. 
          AND THEN GENERALLY, YOU KNOW, THESE CUSTOMERS ARE PART OF OUR BUSINESS AND ECONOMIC DEVELOPMENT BACKDROP. AGAIN, THEY SUPPORT BY INVESTING IN INFRASTRUCTURE AND SUPPORT THE TECH HUB THAT SAN ANTONIO AND THIS REGION ALREADY IS. WE HAVE 21 DATA CENTERS AND HAVE HAD 21 DATA CENTERS EVEN BEFORE, YOU KNOW, KIND OF THE AI BOOM. AND SO THIS IS JUST CONTINUED ADVANCEMENT OF THE TECH HUB THAT WE ALREADY ARE. 
          I'M GOING TO TRANSITION TO THE FINANCIAL IMPACT OF LARGE LOADS. 
          BY THE NUMBERS, FOR EVERY 100 MEGAWATTS OF THESE LARGE-LOAD CUSTOMERS THAT WE CONNECT TO OUR SYSTEM PAYMENT ANNUALLY. I MENTIONED THE CUSTOMER PROTECTIONS AND MAKING SURE THAT WE ARE MAKING SURE THAT THE COST ASSOCIATED WITH LARGE LOADS AREN'T BEING PASSED ON TO OTHER CUSTOMERS. WE HAVE A NUMBER OF SAFEGUARDS AND PROTECTIONS THAT I'M GOING TO WALK YOU ALL THROUGH. 
          COST RECOVERY IS IMPORTANT. WE MAKE SURE THAT WE SET UP LONG-TERM AGREEMENTS WITH THESE CUSTOMERS TO GET FULL RECOVERY OF THE INFRASTRUCTURE INVESTMENTS. 
          AND THEN AS CORY MENTIONED IN HIS PRESENTATION, WE ARE UNDERTAKING A NEW COST OF SERVICE STUDY AND THAT IS THE PROCESS WHERE WE ENSURE THERE'S FAIR ALLOCATION OF OUR SYSTEM COSTS ACROSS ALL OF OUR CUSTOMER SEGMENTS. ON RAPID EXPANSION, THE DATA CENTER SEGMENT THAT WE HAVE TODAY -- AS I MENTIONED WE HAVE ABOUT 21 CUSTOMERS -- ACCOUNTS FOR ABOUT $110 MILLION OF NONFUEL REVENUE. 
          WE'RE FORECASTING, OVER THE NEXT SIX YEARS, BY FISCAL YEAR 2031, THAT THAT WILL GROW TO $185 MILLION. THAT WILL RESULT IN AN ADDITIONAL CITY PAYMENT OF $50 MILLION. SO THIS IS AN IMPORTANT SLIDE. 
          I KNOW IT HAS A LOT OF NUMBERS ON IT. BUT OFTENTIMES IN THIS CONVERSATION AROUND LARGE LOADS THERE'S A QUESTION ABOUT ARE THESE LOADS COMING TO AN ELECTRIC SERVICE TERRITORY. AND ULTIMATELY THE RESIDENTIAL OR SMALL CUSTOMERS PAYING FOR THESE LARGE LOADS. 
          THIS IS AN ACTUAL SNAPSHOT OF CPS ENERGY TODAY FOR OUR FISCAL YEAR 2026. 
          OF OUR CUSTOMER COUNT, 89% OF OUR CUSTOMERS ARE RESIDENTIAL. 
          SO THINK ABOUT THIS AS METERS. 89% OF OUR CUSTOMER COUNT IS RESIDENTIAL. OUR COMMERCIAL CUSTOMERS PRESENT ABOUT 11%. 
          WHEN YOU LOOK AT THE REVENUE OR THE RATES WE CHARGE TO PAY THE COST OF THE SYSTEM, WHILE THE COMMERCIAL CUSTOMERS REPRESENT 11% OF OUR CUSTOMER COUNT, THEY'RE PAYING OVER 50% OF THE REVENUE. THAT'S ONE ASPECT OF UNDERSTANDING, AS WE GROW THAT COMMERCIAL COMPONENT, THAT THE DOLLARS AND THE REVENUE ASSOCIATED WITH THAT COMPONENT WILL ACTUALLY CONTINUE TO GROW. 
          AS WE SET COSTS FOR THE WHOLE SYSTEM, CAN BE RATE SUPPRESSIVE AND HELP ALL CUSTOMERS WITH THAT ADDITIONAL SALES AND CONSUMPTION. 
          SO FAIRNESS IS CRITICAL. YOU KNOW, AS WE GO THROUGH RATE PROCESSES, BOTH AT THE STATE LEVEL, THROUGH THE PUC FOR TRANSMISSION AS WELL AS RATE SETTING IN GENERAL, YOU KNOW, RATES HAVE TO BE DEFENSIBLE. THEY HAVE TO BE JUST AND REASONABLE. THEY CAN'T BE PREFERENTIAL OR PREJUDICIAL. 
          WE HAVE TO MAKE SURE THAT ALL OF OUR CUSTOMER CLASSES ARE GROUPED BASED ON THEIR USAGE CHARACTERISTICS AND THAT WE SET RATES AND WE SET OUR COST OF SERVICE BASED ON HOW THOSE CUSTOMERS USE THE SYSTEM, NOT BASED ON THEIR INDUSTRY. 
          OUR RATES HAVE TO BE DESIGNED TO COVER THE COST OF SERVICE AND ALL OF OUR DEBT OBLIGATIONS. WE ARE NOT SETTING RATES TO CREATE A REVENUE, CREATE ADDITIONAL REVENUE. WE MERELY ARE IN THIS TO MAKE SURE THAT OUR COST OF SERVICE IS COVERED. IN OUR MOST RECENT COST OF SERVICE STUDY, WHICH WAS IN 
          [01:50:02]
FISCAL YEAR 2022, WE CONDUCTED A SURVEY WORKING WITH A THIRD-PARTY CONSULTANT WHO STUDIED ALL OF OUR RATES. THEY LOOKED AT OUR RESIDENTIAL CLASS, OUR SMALL BUSINESS CLASS, AND OUR MEDIUM AND LARGE BUSINESS CLASSES. AND THEY CALCULATED THE AMOUNT OF COST THAT THOSE CUSTOMERS CREATE ON THE SYSTEM AND HOW MUCH THEY'RE PAYING FOR THOSE COSTS. 
          AND CAME TO THE CONCLUSION THAT BOTH OUR BUSINESS AND OUR CNI CUSTOMERS ARE EFFECTIVELY PAYING THEIR FAIR SHARE PLUS SOME AND OUR RESIDENTIAL CUSTOMERS GET THAT BENEFIT. NOW, FROM A RATE DESIGN PERSPECTIVE, IDEALLY WE TRY TO STAY BETWEEN 90% AND 110% AROUND THESE CUSTOMER CLASSES TO ENSURE WE DON'T GET TOO FAR OUT OF WHACK AND EVERYONE IS PAYING PRETTY CLOSE TO THEIR COST TO THE SYSTEM. BASED ON OUR STUDY, RESIDENTIAL CUSTOMERS ARE NOT SUBSIDIZING LARGE C&I CUSTOMERS. ANOTHER COMPONENT IS NOT WHAT YOU PAY FOR IN CONSUMPTION OF ELECTRICITY BUT HOW DO WE ENSURE WE GET FAIR COST RECOVERY AT PRE-CONSTRUCTION, CONSTRUCTION, AND AS THOSE CUSTOMERS COME ONLINE. PRE-CONSTRUCTION, WE REQUIRE A NUMBER OF SURETY MECHANISMS. THIS IS EFFECTIVELY A WAY FOR US TO REQUIRE THESE LARGE CUSTOMERS OR THESE DEVELOPERS TO RAISE A SURETY, AS WE PURCHASE LONG-LEAD ITEMS, OFTEN VERY EXPENSIVE ITEMS, SUCH AS TRANSFORMERS, IF THE PROJECT DOESN'T MOVE FORWARD, THE UTILITY IS MADE WHOLE AND OUR CUSTOMERS DON'T BEAR THE COSTS ASSOCIATED WITH THOSE LONG-LEAD ITEMS. RECENTLY THIS YEAR WE HAVE STARTED CHARGING FOR ENGINEERING STUDIES. BECAUSE OF THE AMOUNT OF INTEREST THROUGHOUT THE STATE AND OUR SERVICE TERRITORY, WE WERE BEGINNING TO EXPEND A LOT OF RESOURCES IN ORDER TO HELP OUR CUSTOMER STUDY IF THEY COULD BE CONNECTED TO OUR SYSTEM AND WHAT CAPACITY LOOKS LIKE. 
          BEGINNING IN 2026 WE'VE NOW STARTED CHARGING. THE STUDIES RANGE FROM $75,000 TO $150,000 BUT THAT'S ALL BORN BY THE CUSTOMER. 
          DOES PAY A CONTRIBUTION AND AID OF CONSTRUCTION. ULTIMATELY, CUSTOMERS REQUESTING NONSTANDARD FACILITIES, SUCH AS HAVING A REDUNDANT CIRCUIT. 
          MANY TIMES DATA CENTERS WANT THAT REDUNDANCY FOR HIGH RELIABILITY, AS WELL AS PREMIUM EQUIPMENT IN THEIR SUBSTATIONS. THEY'RE RESPONSIBLE FOR RAISING THAT CAPITAL AND ENSURING THEY'RE PAYING FOR THOSE THINGS UP FRONT. 
          AS THESE CUSTOMERS ARE ENERGIZED AND, YOU KNOW, ARE CONSUMING ENERGY, WE DO SET FORTH A TEN-YEAR PERFORMANCE PERIOD AND WE BASICALLY SET THAT UP SUCH THAT IF THEY DON'T MEET THEIR SCHEDULES -- WE'RE PROJECTING THE COST AND THE REVENUES EXPECTED TO COME IN. WE HAVE CLAWBACKS IN ORDER TO RETURN DOLLARS BACK TO THE UTILITY TO PROTECT CUSTOMERS FROM STRANDED ASSETS AND OVERINVESTMENT. AND, YOU KNOW, AT THE STATE LEVEL, THERE IS A LOT OF DEVELOPMENT GOING ON AT THE PUBLIC UTILITY COMMISSION AND ERCOT. 
          SENATE BILL 6 IS AN ITEM THAT PASSED IN THE LEGISLATURE -- YOU ALL I'M SURE HAVE HEARD ABOUT IT. EFFECTIVELY, IT'S A RULE MAKING THAT IS HELPING WITH A NUMBER OF ATTRIBUTES AROUND LARGE LOADS, INCLUDING HOW WE STUDY, HOW COSTS ARE APPORTIONED, BACK UP REQUIREMENTS AS WELL AS REQUIREMENTS FOR ISLANDING DURING EMERGENCY EVENTS AND HOW ERCOT IS EVEN STUDYING THESE LOADS AND INCLUDING THEM IN THEIR FORECAST. CPS ENERGY IS ACTIVELY ENGAGED. 
          WE HAVE TEAM MEMBERS  AND ARE PROVIDING COMMENTS AND PERSPECTIVES TO SHAPE THAT LEGISLATION AND ACTIONS THAT ARE HAPPENING AT THE STATE. SO AS WE THINK ABOUT NEW SOLUTIONS, THE WORLD IS DEFINITELY CHANGING. YOU KNOW, WHEN YOU LOOK AT THE CHART THAT I SHOWED EARLIER, RELATIVE TO HOW MUCH PROSPECTIVE LOAD IS OUT THERE, IT'S MORE THAN OUR PEAK USE. IT'S A CONSIDEABLE AMOUNT OF ELECTRIC DEMAND. ACROSS THE UNITED STATES, ACROSS THE GLOBE, YOU KNOW, THERE ARE JUST NEW WAYS TO THINK ABOUT HOW WE'RE MANAGING ALL OF THE GROWTH OF ALL KINDS BUT INCLUSIVE OF AI. AND IT'S REALLY KIND OF COMING DOWN TO A HANDFUL OF AREAS. AS WE THINK ABOUT THE INTERSTATE SYSTEM I MENTIONED, THE TRANSMISSION SYSTEM, WE'RE GOING THROUGH A LOT OF UPGRADES ON THAT HIGHWAY SYSTEM FROM LOOKING AT BUILDING NEW 
          [01:55:08]
HIGHER-VOLTAGE LINES. EFFECTIVELY, THAT'S HELPING RELIEVE THE CONGESTION THAT MOVES ENERGY FROM ONE AREA TO ANOTHER. OFTENTIMES, RENEWABLE ENERGY THAT'S IN REMOTE AREAS TO THE LOAD CENTER, SUCH AS SAN ANTONIO, THESE LARGER LINES ARE GOING TO BE EFFECTIVELY HIGHER-CAPACITY INTERSTATES THAT CAN MOVE THAT POWER TO THE LOAD-SERVING AREAS OF THE STATE. ADDITIONALLY, THE CONDUCTORS, THE WIRES THAT ARE RIDING ON THE TRANSMISSION LINES, WE ARE LOOKING AT IMPLEMENTING ADVANCED CONDUCTORS THAT CAN MOVE MORE POWER. 
          ON POWER GENERATION, THIS IS WHERE WE'RE REALLY GETTING CREATIVE AS AN INDUSTRY AND WE'RE SEEING A LOT OF LEGISLATIVE ACTION AROUND POWER GENERATION. 
          CUSTOMERS ARE BRINGING THEIR OWN POWER. RATHER THAN RELYING ON THE UTILITY, YOU KNOW, BASED ON TIMELINES AND OTHER THINGS TO BUILD ALL OF THE INFRASTRUCTURE TO SERVE THEM, CUSTOMERS ARE NOW BRINGING THEIR OWN GENERATION. SO FOR US, YOU KNOW, WE SEE THIS BENEFICIAL IN A NUMBER OF WAYS. ONE, I MENTIONED ALL THE GROWTH IN THE STATE AND THE NEED TO HAVE DEMAND FLEXIBILITY. AS CUSTOMERS CAN BRING RESOURCES THAT THEY EXERCISE THEIR CAPITAL FOR, THAT THEY'RE RUNNING AND OPERATING. WHEN THE GRID NEEDS THEM TO SHIFT LOAD OR MOVE OUT OF THE WAY, THESE ARE RESOURCES THAT HAVE BEEN INVESTED BY PRIVATE CAPITAL IN ORDER TO SUPPORT BULK RELIABILITY. AND I THINK SOME OTHER ITEMS THAT WE'RE LOOKING AT, WE OBVIOUSLY ARE WANTING TO SET UP STRUCTURES THAT WILL SUPPORT THIS ON-SITE GENERATION. AND THEN, YOU KNOW, WE OURSELVES ARE CONTINUING TO LOOK AT GROWTH IN GENERAL AND HOW WE CONTINUE TO MAKE SURE THAT WE'RE INVESTING IN RELIABLE GENERATION AS WELL AS TRANSMISSION AND DISTRIBUTION. 
          AND THAT BRINGS US TO ONE OF THE TOOLS THAT WE HAVE BEEN WORKING WITH THE CITY ON SINCE THE FALL OF LAST YEAR. I MENTIONED THE ON-SITE GENERATION. 
          THIS IS AN EMERGING TREND IN THE INDUSTRY. THIS VERY LIKELY WILL BECOME A REQUIREMENT UNDER SENATE BILL 6. THAT WORK IS UNDERWAY RIGHT NOW. BUT WE ARE WORKING ON A NEW SERVICE OPTION PILOT. 
          THIS IS EFFECTIVELY A PILOT TARIFF THAT ALLOWS FOR US TO STUDY HOW WE CAN WORK WITH CUSTOMERS IN THEIR BEHIND THE METER OR THEIR ON-SITE GENERATION. 
          IT DOES A FEW THINGS. ONE, IT HELPS CUSTOMERS WITH A NEED THEY'RE GOING TO SOLVE ONE WAY OR ANOTHER. WHETHER IT'S CPS ENERGY OR ANOTHER MECHANISM. 
          IT MEETS THAT RELIABILITY AND BACKUP REQUIREMENT THAT WE FULLY EXPECT AND WE KNOW THAT WILL HELP EXERCISE SOMEONE ELSE'S CAPITAL TO PROVIDE GRID FLEXIBILITY. 
          ANY UNITS, WHETHER IT'S CPS ENERGY UNITS OR CUSTOMER UNITS, THEY'RE GOING TO BE REQUIRED TO BE PERMITTED AND COMPLY WITH ALL RELEVANT ENVIRONMENTAL AND NOISE REGULATIONS, BOTH AT THE LOCAL, STATE, AND FEDERAL LEVEL. 
          AND THE PILOT THAT WE ARE WORKING WITH THE CITY STAFF ON, IT IS TIME BOUND AND IT WOULD GIVE US AN OPPORTUNITY TO EVALUATE HOW THIS PROCESS WILL WORK. 
          ULTIMATELY, WE DO EXPECT THIS REQUIREMENT TO COME DOWN THROUGH STATE RULEMAKING AND IT WILL GIVE US AN OPPORTUNITY TO DESIGN A TARIFF THAT WOULD ULTIMATELY BE PRESENTED TO THE COUNCIL, YOU KNOW, IN A RATE PROCEEDING BASED ON INFORMATION, DATA, AND REAL-WORLD EXPERIENCE. THERE ARE SOME OTHER POLICY TOOLS WE'RE CONSIDERING RELATIVE TO LARGE LOAD. AS PART OF THE COST OF SERVICE STUDY, WE ARE EVALUATING ESTABLISHING A SEPARATE LARGE-LOAD RATE CLASS. AS WE'RE WORKING WITH OUR COST OF SERVICE CONSULTANT, THIS IS ONE BODY OF WORK THAT WE'RE GOING TO ASK THEIR HELP WITH. 
          I ALREADY MENTIONED WE STARTED -- WE STARTED CHARGING FEES FOR LARGE-LOAD ENGINEERING STUDIES. WE'RE GOING TO CONTINUE TO BE LOOKING AT ADDITIONAL MEASURES, NOT ONLY TO MANAGE COST RECOVERY BUT TO CONTINUE TO PROTECT CUSTOMERS FROM THE DEVELOPMENT ACTIVITIES OF THESE LARGE LOADS. 
          WE'RE ACTIVE IN THE PUC CONVERSATIONS, THE FEDERAL GOVERNMENT IS ALSO PURSUING IDEAS TO SUPPORT THE GROWTH OF DATA CENTERS WHILE PROTECTING RESIDENTIAL CUSTOMER BILLS AND ENSURING THESE LOADS ARE PAYING THEIR FAIR SHARE. SO FOR CPS ENERGY, OUR FOCUS IS CONTINUING TO STAY STEADFAST IN OUR CUSTOMER PRIORITIES OF RELIABILITY, AFFORDABILITY, AND CLEANER ENERGY AND ENSURING, AS WE'RE ESTABLISHING ALL OF OUR STRATEGIES, THAT WE'RE APPORTIONING COSTS IN A FAIR MANNER AND THAT CUSTOMERS WHO ARE BRINGING GROWTH ARE PAYING FOR THE GROWTH. WE CONTINUE TO FOCUS ON 
          [02:00:07]
LONG-TERM PLANNING. I WOULD LOVE TO TELL YOU WE HAVE IT ALL FIGURED OUT. 
          THERE'S NOT A DAY THAT GOES BY THAT I DON'T COME IN AND THERE'S A PROJECT THAT'S MOVED IN OR OUT. AND, YOU KNOW, THE NATURE OF THIS FORECASTING IS CHALLENGING, BOTH AT THE STATE AND LOCAL LEVEL BUT WE ARE ABSOLUTELY COMMITTED TO FAIRNESS FOR ALL OF OUR CUSTOMERS. WE TALKED ABOUT IT ALREADY BUT WE ARE COMMITTED TO THE CLIMATE ACTION AND ADAPTATION PLAN GOALS. 
          AND CUSTOMER PROTECTION IS CRITICAL FOR US. WE NEED TO ENSURE, FROM A SYSTEM PERSPECTIVE, THAT WE MAINTAIN OUR LONG-TERM RESERVES FOR OUR CUSTOMERS. 
          WE DO NOT WANT TO BE SHORT POWER RESERVES AND CREATE MARKET EXPOSURE FOR OUR CUSTOMERS. YOU KNOW, HERE LOCALLY OUR FOCUS IS GOING TO CONTINUE TO BE RELIABLE POWER AND RESPONSIBLE GROWTH. THAT CONCLUDES MY REMARKS. 
          I WOULD BE HAPPY TO TAKE ANY QUESTIONS. >> VILLAGOMEZ: I THINK WE'RE GOING TO MOVE FORWARD TO SAWS, MAYOR, IF THAT'S OKAY FOR YOU. 
          >> MAYOR JONES: POINT OF PERSONAL PRIVILEGE, I KNOW COUNCILMEMBER WHYTE WOULD 
          LIKE TO DO SOMETHING, SO GO AHEAD. >> WHYTE: MAYBE I COULD SUGGEST WE DO THE SAWS PRESENTATION AND THEN THEY WILL BE THROUGH SECURITY AND 
          WE CAN BRING THEM IN. THANK YOU. >> MAYOR JONES: GO AHEAD, 
          MARIA. THANK YOU. >> VILLAGOMEZ: THANK YOU, 
          MAYOR. >> GOOD MORNING, MAYOR, CITY COUNCIL MEMBERS. 
          APPRECIATE YOU INVITING US HERE ON THIS TOPIC, THE TOPIC OF DATA CENTERS. 
          A LOT OF PEOPLE TALKING ABOUT DATA CENTERS. A LOT OF THINGS TO DISCUSS HERE. WE'VE HEARD IT FROM THE PRESIDENT OF THE UNITED STATES TALKING ABOUT IT IN THE STATE OF THE UNION. WE HAVE HEARD OUR GOVERNOR TALK ABOUT DATA CENTERS THROUGH AI REVOLUTION THAT TEXAS IS KIND OF THE EPICENTER OF AI. WE'VE HEARD FROM LEGISLATORS, LOCAL MAYORS AND COUNCIL MEMBERS, EVERYTHING FROM WELCOMING DATA CENTERS TO MORATORIUMS AND EVERYTHING IN BETWEEN. VERY TOPICAL DISCUSSION AND WE APPRECIATE YOU BRINGING US IN. MORE SPECIFICALLY, OBVIOUSLY WE HAVE THE CCR THAT WAS PUT FORWARD. LIKE MARIA TALKED ABOUT, SOME OF THE QUESTIONS THAT WE'LL GO THROUGH ON THOSE. SPECIFICALLY, I'M GOING TO TALK ABOUT THE WATER PERSPECTIVE OF IT. TO BE CLEAR, WE SEE THE DATA CENTER -- ADVENT OF THE DATA CENTERS IN SAN ANTONIO AS BOTH A RISK AND AN OPPORTUNITY. 
          WE THINK IT'S A HIGHLY MANAGEABLE RISK BUT IT'S SOMETHING THAT OBVIOUSLY WE WILL NEED TO WORK WITH YOU AND OUR BOARD TO MAKE SURE THAT WE HAVE EVERYTHING IN THE RIGHT PLACE. AND WORKING WITH THE DATA CENTERS AS THEY COME IN, AS ALL INDUSTRIES COME IN WE NEED TO HAVE THAT CONSTANT WORKING RELATIONSHIP WITH THEM. DIFFERENT TYPES OF DATA CENTERS -- AND I'LL QUICKLY GET TO THE WATER PORTION OF IT. WHEN I TALK ABOUT DATA CENTERS, THERE ARE THE TRADITIONAL ONES, THERE ARE LOTS OF THOSE ALL OVER THE PLACE. ALL THOSE ARE USING TRADITIONAL AIR COOLED AND NOT HEAVY WATER USERS. PARTICULARLY, THE ONES IN SAN ANTONIO ARE NOT USING A LOT OF WATER AT THIS POINT. I'LL TALK THROUGH THAT. IT'S REALLY THE AI DATA CENTERS THAT ARE COMING IN THAT ARE GOING TO NEED A LOT MORE NATURAL RESOURCES SOMETIMES WHEN THEY NEED A LOT OF ENERGY, THEY NEED LESS WATER OR VICE VERSA. 
          THAT'S WHERE WE'RE GOING TO TALK ABOUT. WHEN WE TALK ABOUT THE WATER PORTION OF IT, THE TWO FORMS OF COOLING ARE EVAPORATIVE COOLING AND LIQUID COOLING, MORE OF THE IMMERSE AND DIRECT TO CHIP. THE EVAPORATIVE USES THE MOST AMOUNT OF WATER, OR IT CAN. THAT IS THE HIGHEST WATER-INTENSIVE USAGE OF DATA CENTERS. LUCKILY, A LOT OF THEM ARE GOING AWAY FROM THE EVAPORATIVE COOLING, WHICH IS A GOOD THINGS IN TERMS OF THE PROLIFERATION OF DATA CENTERS AROUND TEXAS AND OUR COMMUNITY. 
          SO THE LIQUID USES HAVE A LOT LESS WATER INTENSIVE. WE'RE HAPPY TO WORK THROUGH THOSE. IN TERMS OF WHAT THAT MEANS IN SAN ANTONIO, OBVIOUSLY AND REALLY ACROSS THE NATION, EVERYBODY IS GRAPPLING WITH WHAT IS THE WATER USAGE GOING TO BE. WE PLAY A PART IN VARIOUS COMMITTEES, NATIONAL WATER COMMITTEES ABOUT WHAT IS THE LOAD GOING TO BE FROM THE WATER PERSPECTIVE. 
          WE HAVE HAD BOTH SIDES. WE HAD SOME DATA CENTERS LOOKING FOR A VERY LOW AMOUNT OF WATER BUT WE HAVE HAD A COUPLE OF REQUESTS FOR A VERY SIGNIFICANT AMOUNT OF WATER. AND SO I BELIEVE WE HAVE TALKED TO THEM AND THEY HAVE REDUCED THAT LOAD. AGAIN, I THINK SOME OF IT IS GOING FROM EVAPORATIVE TO A DIFFERENT TECHNOLOGY. WE HAVE SEEN A LITTLE BIT OF BOTH, AT LEAST IN THE 
          [02:05:03]
INITIAL DISCUSSION PHASES. SAN ANTONIO IS A LITTLE BIT BETTER THAN A LOT OF OTHER COMMUNITIES AT DEALING OR BETTER ABLE TO DEAL WITH SOME OF THE HIGHER USAGE BECAUSE OF OUR LARGEST IN THE NATION DIRECT RECYCLED SYSTEM. 
          OUR PURPLE PIPE NETWORK. I'LL GIVE YOU A TWO-FER HERE. 
          A LOT OF YOU WANT TO KNOW ABOUT THE EXPANSION OF OUR RECYCLED SYSTEM IN GENERAL AND THIS WILL TALK TO THAT A BIT. WE'RE VERY PROUD OF THE RECYCLED NETWORK. THIS KEEPS USES OF WATER ON THE RECYCLED SIDE AS OPPOSED TO THE POTABLE SIDE. IT KEEPS US FROM HAVING TO DEVELOP NEW WATER RESOURCES THAT CAN BECOME CONTROVERSIAL AND MORE EXPENSIVE. 
          OUR RECYCLED WATER SYSTEM LEAVES US BETTER ABLE TO HANDLE THE DATA CENTER EXPANSION THAT WE'RE SEEING. VERY GENERALLY, OUR RECYCLED WATER SYSTEM, THE PURPLE PIPE NETWORK GOES AROUND THE CITY. IT'S ABOUT 130 MILES WORTH OF PIPELINE. VERY VAGUELY AROUND THE 410 CORRIDOR BUT WE HIT MOST ALL SIDES OF TOWN. WE CERTAINLY HIT BOTH SIDES OF TOWN BUT ALL FOUR SIDES OF TOWN. WE DON'T GO INTO EVERY DISTRICT AND SO MORE EXTENSIONS MIGHT NEED TO BE MADE INTO THE FUTURE BUT THOSE WILL COST SOME MONEY. 
          THIS MAP SHOWS KIND OF WHERE THE EXISTING DATA CENTERS ARE. 
          WE HAVE ABOUT 23 EXISTING DATA CENTERS THAT ARE BUILDINGS DEDICATED TO DATA CENTERS. THOSE ARE THE BLUE DOTS ON THE SLIDE. 
          AND THEN SOME OF THE -- WE'VE GOT ABOUT 10 RED SQUARES UP THERE THAT ARE SOME OF THE NEW ONES THAT WE HAVE IN THE CONTRACTING PHASE. 
          I'LL JUST ADDRESS CPS HAS A DIFFERENT MAP THAN WE DO. THE RED SQUARES REALLY TALK ABOUT THE DATA CENTERS THAT ARE IN SORT OF THE CONTRACTING PHASE. 
          REAL CUSTOMERS, AS OPPOSED TO THOSE ON THE FEASIBILITY SIDE OF IT. 
          YOU CAN SEE MOST OF THEM ARE TRYING TO ALIGN THEMSELVES ALONG THE PURPLE PIPE NETWORK, WHICH IS GREAT FOR US AND IT GOES TO THAT ABILITY FOR US TO MANAGE THE PROLIFERATION. IN TERMS OF HOW MUCH THEY ARE USING TODAY, THE SLIDE HAS BEEN CUT OFF A LITTLE BIT. SO WE'VE GOT ABOUT 100-ACRE FEET. AN ACRE FOOT IS 325,000 GALLONS. 
          ONE ACRE FOOT IS ROUGHLY THREE HOMES, A LITTLE BIT LESS THAN THAT. 
          IT'S MISSING A LITTLE PIECE THERE BUT THE TOTAL POTABLE USAGE, RIGHT NOW THEY'RE USING ABOUT .1% OF THE POTABLE USAGE IN SAN ANTONIO. 
          VERY, VERY SMALL AMOUNT BEING USED FROM A POTABLE SIDE. 
          AND THEN ABOUT A 1.25% ON THE RECYCLED SIDE. A SMALL FOOTPRINT RIGHT NOW THAT DATA CENTERS HAVE. OF THE REQUESTS, THOSE TEN DOTS THAT I SHOWED YOU BEFORE, THAT WILL INCREASE IT TO ABOUT 600-ACRE FEET OR.3% OF OUR POTABLE WATER USAGE. AND ABOUT 12% OF OUR RECYCLED WATER. 
          SIGNIFICANT INCREASES BUT ALL VERY MANAGEABLE FROM A WATER PERSPECTIVE. 
          WHERE DOES THE WATER COME FROM? I SHOULD GO BACK TO THE OTHER SLIDES. WE HAVE THREE WATER RECYCLING CENTERS. 
          THOSE THREE WASTEWATER PLANTS THAT HOPEFULLY MANY OF YOU OR ALL OF YOU HAVE TOURED AT THIS POINT. THE EFFLUENT COMING OUT OF THE BACK END OF THOSE PLANTS AFTER IT'S FULLY TREATED, THERE'S ABOUT 158,000 ACRE FEET OF EFFLUENT THAT COMES, A COMBINATION OF ALL THREE PLANTS. WHAT DO WE DO WITH THAT WATER AND HOW CAN WE BETTER USE IT? ABOUT 50,000 ACRE FEET OF THAT IS DEDICATED TO CPS ENERGY FOR THE BRAWNIG AND CALAVERAS LAKE. 
          WE HAVE ABOUT 50,000 THAT WE ALLOCATE FOR DOWNSTREAM USES TO MAKE SURE WATER GETS DOWN TO THE COASTAL AREA. THIS ONE IS A GREAT PERMIT THAT WE JUST GOT -- MR. PUENTE LED IT DURING HIS LEGISLATIVE DAYS AND CONTINUED ON AT SAWS. 
          AND SO WE HAVE ABOUT 50,000 ACRE FEET DEDICATED TO DOWNSTREAM FLOWS. 
          OF THE ACTUAL DEMANDS FOR OUR RECYCLED SYSTEM, WE HAVE ABOUT 20,000 ACRE FEET THAT ACTUAL DEMANDS THAT CAME THROUGH THAT PURPLE PIPE NETWORK. 
          THAT LEAVES JUST UNDER 40,000 ACRE FEET. 38,500-ACRE FEET AVAILABLE OF WATER MOLECULES THAT COULD BE TAKEN ADVANTAGE OF FROM A RECYCLED WATER PERSPECTIVE. THAT'S AN ENORMOUS AMOUNT OF WATER. 
          IT'S A GOOD AMOUNT OF WATER. HOWEVER, LET ME STRONGLY CAUTION AGAINST THAT NUMBER. 
          OUR RECYCLED WATER NETWORK CAN ONLY PROVIDE ABOUT 35,000 ACRE FEET TODAY. 
          [02:10:03]
SO WE'RE ALREADY USING 20 OF THAT NOW. SO WE'VE GOT A LITTLE OVER 20,000 ACRE FEET AVAILABLE FROM OUR EXISTING SYSTEM. IF WE WANT TO TAKE ADVANTAGE OF THE REST OF THAT, THERE WILL BE SOME SIGNIFICANT EXPANSION OF THE SYSTEM THAT WE'LL NEED TO DO AND WE'LL NEED TO PUT SOME MONEY INTO IT. 
          SO THAT'S SOMETHING INTO THE FUTURE. AGAIN, THAT WAS THE VOLUME OF WATER. WHEN YOU HAVE THAT VOLUME, THEN YOU HAVE TO MOVE IT AROUND THE CITY. SO WE HAVE TO REALLY CONCENTRATE ON OUR HYDRAULIC CAPACITY AND THE INFRASTRUCTURE IN PLACE. THE PUMPS AND THE PIPES AND THE TANKS THAT ARE IN PLACE. WHEN YOU LOOK AT IT, OBVIOUSLY, AS YOU WOULD IMAGINE WATER, THEY'RE USING MORE IN THE SUMMER AND LESS IN THE WINTER. 
          A HYDRAULIC CAPACITY, IT DEPENDS ON TIME OF DAY, SITE SPECIFIC, WHERE THEY'RE LOCATED ON THE PIPELINE. WE HAVE ABOUT 1200-ACRE FEET IN A MONTH IN OUR HIGHEST USAGE MONTH AVAILABLE. AND THAT WOULD TAKE IT TO THE HYDRAULIC CAPACITY OF OUR LINE. WE NEVER WANT TO RUN THINGS AT FULL MAX PEAK VOLUME ALL THE TIME. SO THAT'S WHERE I COME UP WITH WE'VE PROBABLY GOT ABOUT 10,000 ACRE FEET AVAILABLE TO DISTRIBUTE IN THE EXISTING NETWORK. 
          THAT WILL REQUIRE SOME WORK ON INFRASTRUCTURE BUT NOT FROM A BIG EXPANSION STANDPOINT. OUR RECYCLED SYSTEM, THIS IS ANOTHER VIEW OF THAT SAME MAP BUT IN DIFFERENT COLORS. THAT'S JUST TO NOTATE THE EAST AND WEST LEG. 
          WHILE THE SYSTEMS ARE CONNECTED, THE EAST AND WEST LEGS ARE CONNECTED, THERE'S NOT FULL ABILITY TO MOVE WATER EITHER WAY, WEST AND EAST. 
          AND MOST OF OUR CUSTOMERS ARE REALLY ALONG THAT EAST LEG, THAT BLUE LEG THAT YOU SEE. THAT'S THE LINE THAT IS SORT OF HIGH USAGE. 
          WE HAVE A LOT OF CUSTOMERS ON THAT. AND WE HAVE A LOT LESS CAPACITY ON THAT SIDE OF THE LINE THAN WE DO ON THE OTHER SIDE OF THE LINE. 
          SO SITE-SPECIFIC IS VERY IMPORTANT. WE ARE WORKING -- AND THIS IS A VERY IMPORTANT PIECE -- WE'RE WORKING ON A PROJECT THAT WOULD CONNECT THE LEON CREEK TREATMENT PLANT TO THE CLAUSE PLANT. THAT WILL MAXIMIZE OUR ABILITY TO MOVE AWARD FROM WEST TO EAST . THERE'S SOME MORE INFRASTRUCTURE PROJECTS THAT WILL COME OVER THE NEXT FEW YEARS BUT IT WILL ALLOW US TO MOVE THAT WATER A LOT BETTER AND UTILIZE AT LEAST 10,000 ACRE FEET AVAILABLE. 
          WHEN WE TALK ABOUT COST, OUR RECYCLED WATER YOU HEARD TALKED ABOUT COST OF SERVICE. OUR RECYCLED WATER IS THE SAME WAY. 
          WE ONLY CHARGE RECYCLED WATER CUSTOMERS THESE RATES. OUR REGULAR CUSTOMERS DON'T GET THESE RATES. JUST OVER THE PAST YEAR, WE'VE BEEN WORKING FOR THE LAST FEW YEARS GETTING IT TO 100% COST OF SERVICE COVERAGE. 
          WE'VE GOT, JUST IN 2026, IT'S FINALLY COVERING 95% COST OF SERVICE, WHICH IS GOOD. AND THE RECYCLED RATES, WE WANT TO KEEP OUR RECYCLED RATES LOWER BECAUSE WE WANT TO INCENTIVIZE PEOPLE GOING TO RECYCLE AS OPPOSED TO A POTABLE SOURCE, PARTICULARLY A LARGE-DEMAND CUSTOMER. I'M TALKING ABOUT DATA CENTERS BECAUSE THAT'S THE POINT. BUT REALLY LARGE-DEMAND CUSTOMERS, THERE ARE LOTS OF DIFFERENT ONES THAT ARE FAR EVEN OUTSIDE OF THE DATA CENTER WORLD. BUT YOU CAN SEE OUR RECYCLED RATES ARE ANYWHERE. 
          THE MAYOR ASKED THE QUESTION ABOUT IS RECYCLED WATER SAFE TO USE FROM A HEALTH CONCERN I WANT TO ASSURE EVERYBODY THAT RECYCLED WATER IS ABSOLUTELY SAFE FROM A COOLING TOWER PERSPECTIVE, FROM A DATA CENTER PERSPECTIVE. 
          WE HAVE SEEN A FEW STUDIES THAT ARE OUT THERE AND THEY REALLY TALK ABOUT RECYCLED WATER THAT'S BEEN USED IN SECONDARY TREATMENT. WE USE A HIGHER STANDARD. 
          IT HAS A CHLORINE RESIDUAL, WHICH HELPS. REALLY, IT'S ABOUT THE MAINTENANCE THAT THE INDIVIDUAL BUSINESSES HAVE ON THEIR COOLING TOWERS. 
          THIS IS LARGELY WITH EVAPORATIVE. MAYOR, WE TALKED A LITTLE BIT OUTSIDE OF THE DATA CENTERS, THE LOCAL NEIGHBORHOODS. 
          AND SO THEY JUST NEED TO MAKE SURE THAT THERE'S EQUIPMENT IN PLACE AND THAT THEY ARE MONITORING TO ENSURE THERE'S NOT BIOFILM AND CONTAMINANTS, BACTERIA CAUSING LEGIONELLA AND THAT SORT OF THING. THERE'S SOME CONTROLS BUT IT'S NOT ABOUT THE SOURCE OF WATER, IT'S NOT ABOUT THE RECYCLED WATER, IT'S ABOUT THE EQUIPMENT AND MAINTENANCE AT THE BUSINESSES. 
          POLICY CONSIDERATIONS. WE WANT TO LAY OUT KIND OF SOME OF THE AREAS OF POLICY CONSIDERATIONS THAT WE WANT TO TALK ABOUT. WE'LL BRING THIS BACK TO OUR BOARD AND THEN TO YOU TO LAY OUT SOME OF THE SPECIFICS. BUT TO THE EXTENT POSSIBLE, I WANT TO MAXIMIZE THE USE OF RECYCLED WATER, PARTICULARLY WITH 
          [02:15:03]
HIGH-DEMAND CUSTOMERS. THE MORE WE CAN PUT THEM ON TO THE RECYCLED WATER SYSTEM, THAT'S GOOD FOR US, THEM, AND THE COMMUNITY. WE WANT TO MAXIMIZE THE USE OF THAT. THAT MAY END UP BEING REGULATORY IN NATURE. 
          AS YOU SAW ON THE MAP, MOST OF THEM ARE LOCATING AROUND THE RECYCLED SYSTEM. 
          A LOT OF THAT WILL JUST HAPPEN ANYWAY. BUT WE NEED TO TALK ABOUT MAKING SURE THAT WE MAXIMIZE AND PUSH THE USE ON TO RECYCLED WATER. 
          DROUGHT RULES. WE'RE IN ONE OF THE MOST SEVERE DROUGHTS IN HISTORY RIGHT NOW. WE NEED TO MAKE SURE THAT DURING THAT, THAT GOES BACK TO THE FIRST ONE THAT WE'RE USING RECYCLED WATER AND NOT POTABLE WATER. 
          BUT THERE ARE LOTS OF WAYS THAT WE CAN SHAVE OFF SOME OF THAT USAGE AND REALLY THAT GOES TO THE PEAKING USAGE IN THE SUMMERTIMES. AND ALSO USING THE BETTER TECHNOLOGIES AND GOING AWAY FROM THE HIGH INCIDENT OF EVAPORATIVE USE. 
          REDUNN DIT WAS NOT BUILT LIKE OR POTABLE SYSTEM, IT WAS BUILT FOR IRRIGATION AND FLOWS OF SORT THAT'S NOT CONSTANT 100% OF THE TIME. SO THE RELIABILITY OF THE RECYCLED IS NOT WHAT IT IS IN POTABLE. THAT'S A BIG DEAL FOR A BUSINESS NEEDING IT FOR THEIR BUSINESS PROCESS. WE NEED TO MAKE SURE THAT OUR SYSTEM IS REDUNDANT AND RELIABLE BUT ALSO THAT GOES TO SOME OF THE REGULATIONS THAT WE'LL PUT ON THE BUSINESSES TO MAKE SURE THEIR SYSTEM IS REDUNDANT AND RELIABLE. WHAT THAT WILL LOOK LIKE IS MORE STORAGE ON THEIR FACILITY. SO THEY'RE ABLE TO HAVE MORE STORAGE IN CASE OUR SYSTEM GOES DOWN, THEY'RE NOT IMMEDIATELY PUT OUT OF WATER. 
          AND THEN THEY ALSO DON'T HAVE TO FOLLOW -- WE DON'T HAVE TO HAVE A SECONDARY BACKUP POTABLE SOURCE. THE BIGGER ISSUE AS WELL IS THE MODIFIED RATE STRUCTURE. 
          OUR RECYCLED WATER RATES ARE VERY LOW AND ON PURPOSE. WE ALSO DO NOT CHARGE IMPACT FEES. WE TALKED A LITTLE BIT ABOUT OUR IMPACT FEES, AND THAT'S REALLY GROWTH PAYING FOR GROWTH. VERY IMPORTANT, PARTICULARLY IN THE WATER SIDE. WE DO NOT HAVE THOSE IN PLACE FOR THE RECYCLED SIDE. 
          SO A LARGE EXPANSION OF THE RECYCLED SYSTEM PROBABLY MEANS THAT WE NEED TO LOOK AT SOME OF OUR IMPACT FEES AND MAKE SURE THAT THAT IS IN PLACE. 
          I WOULD SAY WHILE THAT SOUNDS GOOD, THAT'S A CHALLENGE. 
          TO GET THERE YOU HAVE TO DO AN ENGINEERING PLAN. YOU HAVE TO PUT IT IN A PROCESS, IMPACT FEE PROCESS. YOU'RE LOOKING AT FIVE TO SEVEN YEARS OUT BEFORE YOU CAN PUT A RATE IN PLACE. THE DATA CENTERS ARE HERE TODAY AND WE NEED TO MAKE SURE THAT THE RATE PROCESS IS ABLE TO CAPTURE WHAT'S HAPPENING TODAY AND ALSO INTO THE FUTURE. LOOKING AT SOME OF THE PEAKING, AGAIN, I KIND OF MENTIONED THAT EARLIER. MAYBE WE CAN SHAVE OFF SOME OF THE PEAKING AND PUT IN SOME OF THOSE CONTAMINATION CONTROLS THAT I MENTIONED IN THE PREVIOUS SLIDE TO MAKE SURE THAT BUSINESSES ARE MAINTAINING THEIR SYSTEMS. THOSE ARE THE POLICY AREAS. 
          WE'LL PUT SOME MORE MEAT ON THOSE BONES. OBVIOUSLY, WE'LL TALK TO YOU, OUR BOARD, AND WE'LL TALK TO THE INDUSTRY ABOUT BRINGING SPECIFIC PROPOSALS TO YOU ON THAT. BUT THOSE ARE THE AREAS THAT WE'RE MOST CONCENTRATED ON. 
          I WILL ALSO SAY, AGAIN, WE'RE WORKING WITH VARIOUS NATIONAL ORGANIZATIONS AND OTHER ENTITIES THAT ARE PUTTING RULES IN PLACE AND SO WE'RE LOOKING AT SOME OF THOSE. AUSTIN, FOR EXAMPLE, SAID IF YOU'RE LOCATED WITHIN A CERTAIN DISTANCE OF A RECYCLE LINE, YOU MUST CONNECT TO THE RECYCLE LINE AND THOSE SORTS OF THINGS. THERE ARE SOME POLICIES AROUND TRANSPARENCY OF WATER USAGE AND DIRECTING PEOPLE TOWARDS THE RECYCLED WATER NETWORK THAT WE'RE LOOKING AT. SO THAT'S MY PRESENTATION. AGAIN, IT'S AN OPPORTUNITY AND RISK. WE THINK IT'S HIGHLY MANAGEABLE BUT THESE ARE 
          THINGS THAT WE'LL HAVE TO WORK THROUGH. >> VILLAGOMEZ: MAYOR, OUR NEXT PRESENTATION IS OUR DEPARTMENT OF DEVELOPMENT SERVICES TO TALK ABOUT POLICY TOOLS FOR CITY COUNCIL AROUND THE GROWTH OF DATA CENTERS. 
          >> GOOD AFTERNOON, MAYOR AND COUNCIL. 
          CONTINUE THE CONVERSATION ABOUT DATA CENTERS, ONE OF THE QUESTIONS IN THE CCR TALKED ABOUT POLICIES AND PROCEDURES, IF WE CAN HAVE ANYTHING TO CONTROL THE GROWTH OF DATA CENTERS. SO I JUST WANT TO LOOK AT THE EXISTING UNIFIED DEVELOPMENT CODE. IT DOES LACK A STANDALONE DEFINITION OR A LINE ITEM IN THE ZONING MATRIX FOR DATA CENTERS. BUT WHAT WE UTILIZE TODAY IS AN OFFICE DATA PROCESSING AND MANAGEMENT. THAT'S THE CLOSEST THING WE HAVE IN THE MATRIX AND THAT'S WHAT WE HAVE BEEN USING FOR A LONG TIME. 
          THE ISSUE WITH THAT IS IT DOES ALLOW DATA CENTERS IN A LOT OF ZONING CATEGORIES, 
          [02:20:05]
ALMOST EVERYTHING EXCEPT RESIDENTIAL. AND WE DID CHECK WITH THE BIG CITIES IN TOWN. HOUSTON DOESN'T HAVE ZONING SO WE KNOW THAT. 
          BUT AUSTIN, DALLAS, AND FORT WORTH, THEY DON'T HAVE ANYTHING IN THEIR ZONING MATRIX. THEY HAVE IT ON A BIGGER SCALE. 
          SO THEY ALLOW DATA CENTERS TO BE IN INDUSTRIAL BUT THEY DON'T HAVE A LINE ITEM SPECIFICALLY FOR IT. NOW, EL PASO IS LIKE THE CITY OF SAN ANTONIO. 
          THEY DO HAVE A LINE ITEM IN THEIR ZONING MATRIX IN REGARDS TO THAT PROCESSING. 
          SO THEY USE THE SIMILAR THING WE HAVE. SO IF THE RECOMMENDATION FROM COUNCIL IS TO LOOK INTO THE UDC, UNIFIED DEVELOPMENT CODE WE HAVE A COUPLE OF THEM HERE. OPTION ONE IS TO LIMIT THE APPLICABLE ZONES TO C-3 AND I-1 TO MAKE IT MORE LIMITED. AND/OR TO DO THAT PLUS HAVE SOME RESTRICTIONS ABOUT A BUFFER, ABOUT A THOUSAND FOOT FROM ANY RESIDENTIAL PROPERTY OR PARKS OR HOSPITALS OR WHATEVER THE RECOMMENDATION IS. 
          SO, AGAIN, WITH THAT SAID IF COUNCIL ELECTS US TO PROCEED WITH THIS, WE CAN DO OUR DUE DILIGENCE. WE WILL TAKE IT AND PARTNER WITH THE STAKEHOLDERS TO 
          REVIEW THAT. >> THEN WE WILL DEVELOP A DRAFT UDC AMENDMENT AND THEN WE CAN PRESENT IT TO THE ZONING COMMISSION FOR A FORMAL RECOMMENDATION AND THEN BRING IT TO CITY COUNCIL. AND THAT'S IT. 
          >> MAYOR JONES: WONDERFUL. APPRECIATE THAT. COUNCILMAN WHYTE, GO 
          AHEAD. >> WHYTE: TO STAND IN FRONT OF THE PODIUM, BECAUSE WE CAN'T SEE YOU. 
          THANK YOU. DON'T BE SHY. >> WHYTE: WELL, MAYOR, FIRST OF ALL, LET ME THANK YOU AND YOUR TEAM FOR ALLOWING ME TO HAVE THIS POINT OF PERSONAL PRIVILEGE TODAY, AND COLLEAGUES, THANK YOU FOR GIVING ME A MINUTE. I WANT TO INTRODUCE YOU TO GIRL SCOUT TROOP 5059. [APPLAUSE] THIS IS A GREAT, GREAT GROUP OF YOUNG LADIES, AND I'M PROUD TO SAY THAT MY DAUGHTER OLIVIA IS A PART OF THE TROOP. AND TODAY, BY BEING HERE, THEY ARE GOING TO RECEIVE THEIR INSIDE GOVERNMENT BADGE. SO IT'S A BIG DAY. 
          IT'S A BIG DAY. [APPLAUSE] AND I KNOW MOST OF ALL THESE GIRLS, I'VE COACHED THEM IN BASKETBALL OR I'VE SEEN THEM AROUND SCHOOL. AND THIS IS A GROUP OF YOUNG LADIES THAT IS GOING TO GO ON TO DO BIG, BIG THINGS FOR OUR COMMUNITY. 
          AND I'M HAPPY THAT YOU'RE ALL HERE TODAY, AND I HOPE YOU LOOK AROUND THIS TABLE, BECAUSE WHAT YOU SEE HERE IS A GROUP OF PEOPLE, MEN AND WOMEN, THAT COME FROM ALL DIFFERENT BACKGROUNDS AND HAVE ALL DIFFERENT KINDS OF BELIEFS, BUT WE ALL WORK TOGETHER ON A DAILY BASIS TO TRY TO COME UP WITH THINGS TO MAKE THE LIVES OF SAN ANTONIANS BETTER. 
          AND ALL OF YOU GOING FORWARD, IT DOESN'T HAVE TO BE IN ELECTED OFFICE, BUT IN WHATEVER YOU CHOOSE TO DO LATER IN LIFE, I HOPE THAT A PART OF YOUR DAY-TO-DAY DOINGS WILL BE TO THINK ABOUT HOW YOU CAN SERVE. 
          YOU'RE DOING IT RIGHT NOW AS A PART OF THE GIRL SCOUTS, AND I KNOW IN THE FUTURE, IN YOUR CAREERS AND IN YOUR EXTRA TIME, THAT HOPEFULLY YOU WILL TAKE SOME TIME TO DO WHAT YOU CAN TO GIVE BACK LIKE ALL OF THESE GREAT FOLKS THAT I GET TO WORK WITH EVERY DAY. SO CONGRATULATIONS ON GETTING YOUR BADGE. AND I'M SURE THEY WOULD LOVE A FEW COMMENTS FROM 
          OUR MAYOR. >> MAYOR JONES: ALL RIGHT, LADIES. 
          WELL, THANK YOU FOR JOINING US TODAY. WE'RE VERY PROUD OF YOU. 
          I WANT TO SEE BY A SHOW OF HANDS WHO IS GOING TO GET THE GOLD AWARD? WHO'S THE GOLD AWARD? THE GOLD AWARD IS THE HIGHEST RANK OF GIRL SCOUTS. SO IT'S LIKE -- IT'S THE HIGHEST ONE. 
          SO IF THAT'S NOT ON YOUR GOAL LIST, PLEASE MAKE IT ON THERE, BECAUSE WE KNOW THAT YOU CAN DO GREAT THINGS. OBVIOUSLY, YOU'VE GOT A WONDERFUL SUPPORTER IN COUNCILMAN WHYTE, AND AS HE MENTIONED, YOU KNOW, THE -- YOUR COMMITMENT TO IMPROVING YOURSELF, THE FACT THAT IT HAS STARTED SO EARLY, I THINK REALLY SPEAKS TO NOT ONLY YOUR MATURITY AND YOURSELF-DISCIPLINE, BUT ALSO THANK YOU TO THE PARENTS THAT BROUGHT THEM HERE TODAY, THAT TAKES THEM TO ALL OF THEIR EVENTS AND FRANKLY REALLY HIGHLIGHTS THE IMPORTANCE OF AN ORGANIZATION LIKE THE GIRL SCOUTS, THAT 
          [02:25:03]
PRIORITIZES CIVIC ENGAGEMENT AND PERSONAL DEVELOPMENT. 
          CONGRATULATIONS, I HOPE YOU MAKE A MILLION DOLLARS ON YOUR COOKIE SALES. AND IF YOU HAVE COOKIES, PLEASE FEEL FREE TO PASS THEM OUT. BUT THANK YOU. CONGRATULATIONS ON GETTING THE PATCH TODAY. AND ONWARD TO GOLD AWARD, RIGHT? OKAY. THANKS, LADIES. [APPLAUSE] WHOEVER HAS SAMOAS', I'M READY TO BUY SOME RIGHT NOW. 
          >> VIAGRAN: THIN MINTS. >> WHYTE: THANK YOU, MAYOR. 
          >> MAYOR JONES: OKAY. THANK YOU FOR ALL OF THE PRESENTATIONS. 
          THIS IS A TOPIC THAT IS GETTING A LOT OF ATTENTION, AND, AGAIN, RELATED TO THE PREVIOUS TOPIC, HELPING OUR COMMUNITY UNDERSTAND THE DIFFERENCE BETWEEN WHAT IS HAPPENING AND MAYBE WHAT THEY HEAR IS POTENTIALLY CONTRIBUTING TO RISING COSTS, RIGHT, AND DAT IS KIND OF PART OF THAT ALL ACROSS THE COUNTRY. SO I ALSO APPRECIATE COUNCILMAN GALVAN BEING THOUGHTFUL IN HIS LEADERSHIP TO MAKE SURE THAT THIS IS -- AND REALLY APPRECIATE, YOU KNOW, THE INTENT OF THIS WAS MAKE SURE WE LEVEL SET ACROSS THE COUNCIL, BUT ALSO CERTAINLY ACROSS OUR TWO STRATEGIC ADVANTAGES, WHICH ARE THESE TWO UTILITIES. 
          I WANT TO -- A COUPLE OF POINTS OF CLARIFICATION BEFORE WE MOVE FORWARD. 
          ELAINA, ON SLIDE 7, WHICH -- I'M SORRY, SLIDE 5, RATHER -- OH, THEY DID BRING COOKIES! YEAH, THANK YOU. THEY'RE NOT GOING TO MAKE THEM TO YOU. YEAH? OKAY. 
          YEAH. UNDERSTOOD. SO ON THIS SLIDE, ELAINA, WHEN WE JUST DO QUICK MATH HERE, RIGHT, AND I UNDERSTAND NOT ALL THESE THINGS ARE GOING TO COME TO FRUITION, BUT IF ONE MEGAWATT IS 250 HOMES, IF ALL OF THESE THING THINGS CAME TO FRUITION, THIS IS 7 MILLION HOMES. 
          >> WE DO NOT BELIEVE ALL OF THESE PROJECTS WILL COME TO FRUITION. 
          QUITE HONESTLY, THERE'S A NUMBER OF ACTIVITIES GOING ON AT ERCOT, INCLUDING PROPOSED REQUIREMENTS AROUND, YOU KNOW, SITE CONTROL AND SOME COLLATERAL MECHANISMS THAT WE SEE ARE REALLY SORTING OUT PERSPECTIVES FROM TRUE PROJECTS. AND, IN FACT, IF YOU NOTE THIS SLIDE -- THIS WAS AS OF JANUARY 12TH. SINCE JANUARY 12TH, WE'VE ACTUALLY SEEN THE NUMBER REDUCE AND WE HAVE GOTTEN DIRECT INFORMATION FROM CUSTOMERS THAT IT IS TIED TO SOME OF THE PROPOSED CHANGES AT THE STATE LEVEL. SO VERY LARGE NUMBER, BUT THERE ARE -- AND ONE OF THE OTHER ITEMS ERCOT IS INCLUDING IS EFFECTIVELY CLARITY ON, IF YOU'VE GOT A PROJECT, ARE YOU PROPOSING YOUR PROJECT IN MULTIPLE JURISDICTIONS OR MULTIPLE QUEUES, AND SO IT'S REALLY, I THINK, GOING TO RATIONALIZE THE DEMAND. BUT CERTAINLY LARGE NUMBERS.  I WOULD SAY, JUST FOR CLARIFICATION, THE 1700 MEGAWATTS, MAS O MENOS, THAT ARE IN THE AGREEMENT PHASE, THOSE ARE GOING TO TAKE FIVE TO SEVEN YEARS TO BRING ON BOARD, RIGHT? SO WE HAVE A TREMENDOUS AMOUNT OF WORK, BOTH AT THE CUSTOMER SITE AND WE -- WE OURSELVES ARE DOING UPGRADES TO OUR TRANSITION SYSTEM JUST FOR RELIABILITY THAT ARE GOING TO BE NECESSARY IN 
          ORDER TO BRING THAT LOAD ON. >> MAYOR JONES: WELL, AND THANK YOU. BECAUSE EVEN JUST THAT, THAT'S 440,000 HOMES STILL, SO CERTAINLY APPRECIATE THE LONGER TIME FRAME TO BE ABLE TO ACCOUNT FOR THAT. WHEN WE TALK ABOUT THE PILOT THAT WAS DESCRIBED, THIS IS ONE THAT I AM PARTICULARLY INTERESTED IN, AND REALLY SPEAKS TO ENSURE THAT THE LEFT HAND, SAWS, KNOWS WHAT THE RIGHT HAND IS DOING, CPS, BECAUSE, IN EFFECT, RIGHT, JUST REAL PLAIN SPEAK, IF THIS PILOT WOULD BE APPROVED, THIS WOULD ALLOW THESE DATA CENTERS TO COME INTO OUR COMMUNITY AT A RATE FASTER THAN ANTICIPATED BECAUSE WHAT THIS ESSENTIALLY DOES IS -- IF I'M CORRECT -- AND IF I'M MISCHARACTERIZING, YOU'LL CORRECT ME. I KNOW YOU WILL. BECAUSE WHAT THIS DOES IS SERVE AS A BRIDGE UNTIL THE CPS INFRASTRUCTURE CAN CATCH UP, RIGHT? AND SO I.E. THEY WOULD BE IN OUR COMMUNITY SOONER THAN CPS INFRASTRUCTURE CAN SUPPORT, RIGHT? AND SO IF WE'RE DOING THAT, I THINK IT'S REALLY IMPORTANT WE UNDERSTAND NOT -- I MEAN, IT'S GREAT THAT CPS CAN SUPPORT, BUT I KNOW FOR A FACT SAWS, AS OF RIGHT NOW, ONLY HAS ENOUGH RECYCLED WATER TO 
          [02:30:02]
SUPPORT TWO MORE HYPERSCALERS, AND THAT'S IT, RIGHT? SO UNDERSTAND THERE'S, YOU KNOW, ENERGY SOLUTIONS THERE, BUT THEY'RE NOT BRINGING THEIR OWN WATER, RIGHT? THEY'RE NOT BRINGING THEIR OWN WATER. AND DONOVAN, IF YOU WANT TO COME UP, ONE OF THE THINGS THAT DONOVAN MENTIONED YESTERDAY AT OUR SAWS BOARD MEETING WHEN I RAISED THIS EXACT POINT IS THAT THESE FOLKS, DATA CENTERS, IF NEED BE, THEY MAY BE -- IF WE'RE NOT ABLE TO PROVIDE THE WATER, THEY MAY BE ABLE TO GO DIRECTLY TO EDWARDS AQUIFER, COMPETING WITH US. IS THAT CORRECT, DONOVAN? 
          >> THAT'S LARGELY CORRECT. AND LET ME TALK A LITTLE BIT ABOUT -- YOU MENTIONED THE TWO CUSTOMERS THAT CAN EAT UP A LOT OF OUR SOURCE. WE TALKED A LITTLE BIT ABOUT THAT. 
          THAT'S REALLY IF YOU HAVE ENORMOUS CUSTOMERS, SO THE ONES I TALKED ABOUT USING -- WANTING TO USE 5 MILLION-GALLONS A DAY, THAT IS AN ENORMOUS AMOUNT, WHICH IS ABOUT 5400-ACRE FEET. I TALKED ABOUT 10,000-ACRE FEET AVAILABLE, AND THAT'S WHERE YOU GET TO THE MATH AND YOU GET TWO CUSTOMERS AND THEY'VE EATEN UP MOST OF THAT RECYCLED WATER. 
          THAT'S AN IMPORTANT NUMBER TO KNOW. LUCKILY, I DON'T THINK WE'RE HAVING THOSE SORTS OF NUMBERS ANYMORE. THAT ENTITY THAT WE WERE TALKING TO HAS REDUCED THEIR NUMBERS SIGNIFICANTLY. 
          THE OTHER ENTITY THAT HAD TALKED TO US HAS LARGELY GONE AWAY, AND SO I THINK THOSE NUMBERS ARE COMING DOWN. SO I THINK WE'RE ABLE TO SUSTAIN A LOT MORE THAN TWO ENTITIES. AGAIN, ASSUMING THAT THEY'RE USING THE NUMBERS THAT WE'RE SEEING WITH THE OTHER SIDE. 
          SPECIFICALLY TO THE EDWARDS AQUIFER QUESTION, THAT ANSWER IS YES. 
          AND SO WHAT WE'VE HAD IN OTHER COMMUNITIES, I'VE TALKED ABOUT SOME OF THE POLICY ASPECTS, SOME OF THE OTHER COMMUNITIES ARE REQUIRING THAT DATA CENTERS BRING THEIR OWN WATER TO THE TABLE. AND DEED IT OVER TO THE MUNICIPALITY, AND THAT CAN BE HELPFUL FOR CERTAIN COMMUNITIES, BUT FOR US, WHAT THAT MEANS, IS THEY'RE GOING TO GO OUT INTO THE MARKET AND PURCHASE EDWARDS AQUIFER WATER RIGHTS AND THEY WOULD BRING THAT TO US AND GIVE THAT TO US, WHICH MIGHT HELP FROM THAT PERSPECTIVE, FROM THAT ONE ENTITY, BUT WE ARE ALSO OUTLOOKING FOR EDWARDS WATER, AND THAT'S PART OF OUR WATER MANAGEMENT PLAN. COUNCILWOMAN, YOU MENTIONED EARLY E AND SO BY CREATING THAT  KIND OF INCENTIVE, WE'RE INCENTIVIZING THE DATA CENTERS TO GO OUT AND COMPETE WITH US FOR WATER FROM THE EDWARDS AQUIFER. DRIVE UP THE PRICES. 
          I THINK THAT'S THE POINT YOU MADE YESTERDAY. >> MAYOR JONES: VERY IMPORTANT POINT, YES. AND TO YOUR POINT, WHILE IT MIGHT NOT BE THE TWO HYPERSCALERS TODAY, NOTHING TO PREVENTING TWO OTHER HYPERSCALERS FROM COMING IN RIGHT BEHIND THEM AND WANTING THE EXACT SAME POINT, RIGHT? BECAUSE ADDING TO CAPACITY FOR RECYCLED WATER, THAT'S -- I GUESS GIVE US A SENSE OF THE RUNWAY NEEDED TO SUPPORT THAT. 
          >> YEAH, THAT REALLY GOES TO THE POINT OF WE NEED TO INCENTIVIZE MORE ABILITY TO THE RECYCLED WATER SYSTEM, BUT GOING AWAY FROM EVAPORATIVE COOLING. AND, AGAIN, I THINK THE INDUSTRY IS LARGELY GOING AWAY FROM THAT, SO I THINK ORGANICALLY, SOME OF THAT IS HAPPENING ON ITS OWN, BUT THERE MIGHT BE REGULATORY POLICIES THAT ARE NEEDED TO INCENTIVIZE USING LOWER AMOUNTS AND BETTER TECHNOLOGY. 
          >> MAYOR JONES: THE INFORMATION ON SLIDE 5 THAT ELAINA PRESENTED, ARE THESE THE SAME PLANNING CONSIDERATIONS THAT YOU ARE TAKING INTO 
          ACCOUNT? >> I DON'T KNOW THE NUMBERS HERE, HOW THEY RELATE TO THE WATERSIDE. I DO KNOW WE TALKED ABOUT THE MAPS AND THE ENTITIES ON THE MAPS AND LARGELY THE ONES THAT ARE IN THOSE FINAL STAGES OF CONTRACTING, THEY HAVE COME TO US. AND SO WE -- I THINK WE 
          ARE PLANNING TO THE SAME NUMBERS AS THEY ARE. >> MAYOR JONES: WELL, I WOULD WANT US TO MAKE SURE THAT WE CONFIRM THAT FOR ST SURE, BECAUSE, AGAIN, THIS IS A SIGNIFICANT LIST, AND WE WANT TO MAKE SURE THAT THERE'S AS SMALL OF A DELTA FROM THE TIME THAT CPS KNOWS SOMETHING TO THE TIME THAT SAWS KNOWS SOMETHING, SO THAT, AGAIN, WE'RE ALL PLANNING FOR THE SAME THING, GIVEN THE STRAIN THIS IS ON THE INFRASTRUCTURE. 
          ACTUALLY, ELAINA, ARE YOU ABLE -- OH, YEAH, PLEASE, GO AHEAD. 
          >> I WAS GOING TO OFFER PERSPECTIVE RELATIVE TO THE NSO IN THE NEW SERVICE OFFERING TARIFF, AND I WANTED TO ECHO THAT IN PROCESS AND CONTRACTED RESOURCES, RIGHT? THAT REPRESENTS ABOUT 11 PROJECTS. 
          WHEN YOU OVERLAY BOTH CPS AND SAWS MAP, THEY'RE IDENTICAL. 
          BECAUSE OF THE SPECULATIVE NATURE OF SOME OF THESE PROJECTS REALLY LOOKING FOR POWER, THEY'RE WORKING -- YOU KNOW, SUBMITTING REQUESTS AND LOOKING AT WHERE THEY MIGHT BE ABLE TO HAVE CAPACITY, AND THEY HAVEN'T ACTUALLY, YOU KNOW, GOTTEN TO A PLACE WHERE THEY'VE ACTUALLY GOT A DETAILED DESIGN THAT WOULD INFORM THE WATERSIDE. 
          BUT OUR TEAMS DO SHARE INFORMATION. AND, IN FACT, WE'VE JUST -- NOT TOO LONG AGO, ROLLED OUT AN NDA ALLOWING DATA SHARING 
          [02:35:04]
BETWEEN THE ENTITIES. SO I DID WANT TO ADD THAT. 
          FOR THE NEW SERVICE OFFERING, THIS WOULDN'T BE NECESSARILY BRINGING NEW CUSTOMERS, IT WOULD BE ENABLING A TARIFF FOR BEHIND THE METER GENERATION WHICH IS COMING WITH THESE CUSTOMERS, BUT IT WOULD ALLOW US TO STUDY THAT COMPONENT. IT CERTAINLY DOES, YOU KNOW, HELP THE UTILITY GET INFORMED AROUND WHAT A TARIFF WOULD LOOK LIKE, BECAUSE WE DO EXPECT UNDER SENATE BILL 7 REQUIREMENTS FOR BEHIND THE METER GENERATION, BACKUP GENERATION FOR THESE CUSTOMERS. 
          SO THAT'S WHY WE'VE BEEN WORKING WITH THE CITY STAFF ON THIS TARIFF. 
          IT IS A PILOT TIME BOUND FOR TWO YEARS AND LIMITED TO NO MORE THAN 15 CUSTOMERS, AND RIGHT NOW, YOU KNOW, WE -- WE DO HAVE CUSTOMERS WHO ARE IN THAT -- IN THAT CONTRACTED PHASE THAT ARE -- THAT ARE 
          INTERESTED IN THIS PILOT TARIFF. >> MAYOR JONES: DONOVAN, DO YOU HAVE THE WATER NEEDED TO SUPPORT THAT PILOT? 
          >> I BELIEVE SO, FROM WHAT WE'VE DISCUSSED, YES. 
          AND I THINK REALLY THE ENTITY WOULDN'T BE ABLE TO GET STARTED IF THEY CAN'T BRING THE WATER TO THE TABLE. SO THE ENTITIES -- I'M ASSUMING THEY'RE TALKING TO CPS ENERGY ARE THE ONES TA ARE IN THAT FINAL -- THAT ARE IN THAT FINAL STAGE OF DISCUSSING WITH US, SO WE'VE ALREADY GONE THROUGH THAT. THEY WOULD NEED TO BUILD THE PHYSICAL STRUCTURE. 
          WHICH DON'T HAVE A SIMILAR PILOT WHERE WE CAN BRING A PLANT, A WATER PLANT ON SITE OF THEM USING IT. THAT JUST DOESN'T HAPPEN. SO THEY WOULD HAVE TO BUILD OUT A THING TO US, AND THAT'S WHERE THE RECYCLED WATER COMES IN HANDY. 
          >> MAYOR JONES: RUDY, YOU'VE SHARED SOME OF THE REALITY, IF YOU WILL, WITH -- YOU KNOW, IF THE PILOT ISN'T APPROVED, THE COMPANY'S MAY BE ABLE TO -- THERE'S A WORKAROUND, RIGHT? CONFIRM OR DENY THAT. BUT IS ONE OF THOSE OPTIONS REALLY THE 
          COMPANIES TRUCKING IN NATURAL GAS? >> YES, MA'AM. 
          THEY DO IT ALL OVER THE STATE, WHERE THEY CAN'T GET POWER INFRASTRUCTURE, THEY'LL TRUCK IN COMPRESSED NATURAL GAS TO A -- YOU KNOW, TO A POD DUE LAR UNIT, AND THEY'LL RUN IT THAT WAY. AND THEY'RE WILLING TO TAKE -- NOW, YOU CAN'T SCALE THAT, RIGHT? SO YOU'RE NOT GOING TO GET 100 MEGAWATTS OUT OF THAT, BUT YOU'RE GOING TO GET SOME AMOUNT OF CAPACITY THAT AT LEAST LETS YOU, YOU KNOW, DO YOUR CONSTRUCTION AND GET THE PROJECT GOING. YOU KNOW, AND THEN THERE ARE OTHER -- YOU KNOW, THERE ARE OTHER RISKS THAT I'LL GENERALLY ALLUDE TO. 
          YOU KNOW, WHEN WE -- WHEN THERE'S A PERCEPTION WHERE WE CAN'T OR ARE UNWILLING TO DO OUR JOBS, I THINK THAT'S WHERE YOU FIND CONVERSATIONS START TO HAPPEN AT THE RAILROAD COMMISSION OR THE PUBLIC UTILITY COMMISSIONER LEGISLATURE, SAYING, HEY, YOU KNOW, CPS ENERGY'S NOT DOING THEIR JOB DOWN HERE, WE NEED SOME LEGISLATIVE RELIEF. AND, YOU KNOW, WE TWRIE TO BALANCE ALL THAT -- TRY TO BALANCE ALL THAT TO MAKE SURE WE'RE 
          PROTECTING, YOU KNOW, OUR SERVICE AREA. >> MAYOR JONES: CERTAINLY. 
          THANKS FOR CLARIFYING THAT, BECAUSE I THINK -- AT LEAST WHEN I HEARD THAT, THAT IS THE LEAST ATTRACTIVE OPTION, OBVIOUSLY. 
          AND WE'RE OBVIOUSLY, PARTNERS IN SHAPING, HELPING TO COMMUNICATE, BOTH AT THE FEDERAL AND STATE LEVEL THE LEGE AGENDA THAT HELPS -- IT'S NOT JUST CPS NOT WANTING TO PROVIDE THE SERVICE, BUT IT'S RATHER CPS'S OWNERS, THE CITY POTENTIALLY, WANTING TO DO AN ENVIRONMENTAL STUDY TO UNDERSTAND THE IMPACTS OF THESE VARIOUS APPROACHES. 
          SO, AGAIN, THERE'S A PARTNERSHIP THERE THAT WE CAN COMMUNICATE TO FOLKS, SOME OF OUR REAL CONCERNS NOT ONLY IN THE ABILITY FOR WATER TO SUPPORT THIS, BUT ALSO FOR US TO UNDERSTAND THE REAL INFRASTRUCTURE AND POTENTIAL PUBLIC HEALTH CONSEQUENCES OF SOME OF THESE APPROACHES. 
          DONOVAN MENTIONED MY CONCERN ABOUT THE PUBLIC HEALTH RISKS POTENTIALLY, RIGHT, ASSOCIATED WITH RECYCLED WATER. AGAIN, YOU KNOW, SOME OTHER COMMUNITIES ARE MUCH FURTHER ALONG IN THEIR DATA CENTER JOURNEY. I WAS TALKING TO THE MAYOR OF PHOENIX, AND, IN FACT, IN COMMUNITIES AROUND A DATA CENTER, AGAIN, THIS WAS A COUPLE YEARS AGO, RIGHT, BUT THEY DO HAVE HIGHER RATES OF COPD, RIGHT? AND I THINK IT SPEAKS TO THE REALLY IMPORTANT -- THE IMPORTANCE, RATHER, OF REALLY STRONG CONTROLS IN PLACE TO ENSURE THAT NOT -- NOT THE TYPE OF WATER, AS YOU MENTIONED, BUT RATHER THE PROCESS AND THE SYSTEMS IN PLACE TO ENSURE THAT IT'S AS SAFE AS POSSIBLE. CAN YOU -- WE'VE ALSO HEARD -- OBVIOUSLY, YOU KNOW, GIVEN MY NATIONAL SECURITY BACKGROUND, VERY SUPPORTIVE OF MAKING SURE THAT JBSA HAS ALL THAT THEY NEED, BUT WHEN WE LOOK AT POTENTIAL DATA CENTERS ON JBSA, WOULD EITHER CPS OR SAWS, CAN YOU ILLUMINATE FOR THIS GROUP SOME OF THE UNIQUE CONSIDERATIONS THAT THOSE 
          POSE. >> HOW THE MILITARY IN GENERAL CAN EXPAND. 
          [02:40:03]
WE HAVE A VERY GOOD RELATIONSHIP WITH JBSA AND THE MILITARY ABOUT WAYS OF EXPANDING WITHIN SAN ANTONIO, SO I CAN'T GET INTO SPECIFICS -- I CAN -- I DON'T HAVE ANY SPECIFICS FOR YOU IN TERMS OF WHETHER THEY ARE LOOKING TO ADD A DATA CENTER THAT WE WOULD SUPPORT, BUT THAT INFRASTRUCTURE IS THERE, IT'S AVAILABLE, AND WE'D BE HAPPY TO GET INTO 
          THOSE DISCUSSIONS. >> MAYOR JONES: A COUPLE OTHER COMMENTS HERE. 
          THIS IS AN AREA WHERE THE COMMUNITY REALLY WANTS AND CERTAINLY DESERVES TRANSPARENCY. AND SO, YOU KNOW, WE HERE CHANGED OUR APPROACH TO WHEN IT IS ACCEPTABLE FOR THE CITY STAFF TO SIGN NDAS, RIGHT, ESPECIALLY WHEN IT COMES TO THE ECONOMIC DEVELOPMENT PIECE. 
          AND SO, YOU KNOW, MINIMIZING YOUR USE OF NDAS AROUND THESE PARTICULAR PROJECTS, IF OUTRIGHT -- IF NOT OUTRIGHT SAYING WE'RE NOT GOING TO DO THAT, AND IF THAT'S SOMETHING THAT OUR OWN CITY ATTORNEY NEEDS TO HELP WITH OR MAYBE, ANDY, YOU CAN WEIGH IN NOW, BUT THIS IS AN AREA WHERE, AGAIN, WE WANT TO MAKE SURE WE'VE GOT AS MUCH TRANSPARENCY AND ARE NOT NEEDLESSLY SIGNING NDAS ON THIS TOPIC, IF NOT -- IF IT'S NOT 
          NEEDED. >> NAY YOR, I'LL JUST SAY FROM SAN ANTONIO, FROM SAWS PERSPECTIVE, WE REALLY DON'T USE NDAS FOR THESE. 
          >> CERTAINLY, CPS ENERGY, YOU KNOW, WE'VE EXPOSED AND WILL CONTINUE TO SHARE THE DATA THAT'S IN FRONT OF US. WE WANT EVERYONE TO KNOW WHAT PROJECTS ARE PERSPECTIVE LOADS ARE COMING, AND, AGAIN, THIS IS PREDOMINANTLY AROUND DATA CENTERS SH BUT IT'S OTHER THINGS. 
          THIS IS A VERY COMPETITIVE LARND SCAPE, AND SO WE ARE CAREFUL TO PROTECT CUSTOMER INFORMATION TO PROTECT INFORMATION THAT WE ARE SHARING AND WORKING WITH THESE CUSTOMERS, GIVEN THE HIGHLY COMPETITIVE NATURE. WE CAN'T BE IN A POSITION -- WE HAVE TO BE CAREFUL IN A POSITION WHEREBY WE WOULD BE DEMONSTRATING -- ONE, EXPOSING A COMPETITIVE ADVANTAGE SOF ONLY OF THESE LARGE COMPANIES OR IN ANY WAY PERCEIVED -- BE PERCEIVED AS GIVING, YOU KNOW, ANY KIND OF, YOU KNOW, INCONSISTENT OR PERCEIVED PREFERENTIAL INFORMATION OR TREATMENT TO CUSTOMERS. SO WE DO -- WE DO SIGN NDAS, AND AS I MENTIONED, WE'VE RECENTLY WORKED WITH CUSTOMERS TO ALLOW FOR SHARING OF INFORMATION AT THEIR DISCRETION BETWEEN US, SAWS AND THE CITY OF 
          SAN ANTONIO. >> MAYOR JONES: MY LAST POINT ON THIS, I APPRECIATED THE TOUR OF THE FACILITY WHERE THOSE FOLKS WORK HARD DURING AN EMERGENCY, RIGHT, TO MAKE SURE THAT THE WAY IN WHICH FOLKS ARE IMPACTED DURING -- MINIMIZED TO THE GREATEST EXTENT POSSIBLE. 
          NEED TO BE COGNIZANT OF, CERTAINLY I'LL BE COGNIZANT OF IT AS WE'RE SHAPING THE LEGE AGENDA, WAYS IN WHICH DATA CENTERS ARE LOOKING FOR THAT EXEMPTION. WHICH THEN -- WHAT THAT MEANS PRACTICALLY -- WELL, LET ME NOT PUT WORDS IN YOUR MOUTH, WHY DON'T YOU EXPLAIN IT BETTER, BECAUSE IT IS SIGNIFICANT IF THOSE FOLKS ARE, YOU KNOW, KIND OF TAKEN OFF AS NOT SOMEBODY THAT NEEDS TO BE IMPACTED DURING THOSE 
          EMERGENCIES. >> YES. AND SO WHEN YOU LOOK AT LARGE LOADS, AND IN PARTICULAR THESE DATA CENTERS THAT WE'RE TALKING ABOUT, YOU KNOW, ARE ALL GOING TO LIKELY BE, YOU KNOW, IN PLAY UNDER SENATE BILL 6, IN TIMES OF EMERGENCY ALERT ACTIVITIES DURING, YOU KNOW, TIMES OF GRID DISTRESS IN ERCOT, RIGHT NOW PROPOSALS UNDER SENATE BILL 6, ARE THAT THOSE LOADS W LOADS WOULD BE DIRECTED TO COME OFF OF THE GRID TO SHIFT THAT LOAD OFF, AND THEREBY, WOULD LIKELY NEED TO HAVE BEHIND THE METER GENERATION. THERE'S ALSO PROVISIONS UNDER SENATE BILL 6 RELATIVE TO DEMAND RESPONSE AND HAVING THAT BACKUP GENERATION, SO WE BELIEVE THOSE REQUIREMENTS ARE COMING, AND, AGAIN, THAT'S WHY WE'RE PROPOSING FINDING WAYS TO EFFECTUATE THAT. 
          BUT ABSOLUTELY, YOU KNOW, THE EXPECTATION UNDER SENATE BILL 6 IS THAT DURING TIMES OF EMERGENCY ALERT WHERE WE GET INTO VERY TIGHT GRID CONDITIONS, THESE LARGE LOADS WILL HAVE TO MOVE OUT OF THE WAY TO PROTECT BULK SYSTEM RELIABILITY FOR ALL OF -- 90% OF, YOU KNOW, US TEXANS THAT LIVE 
          AND WORK IN ERCOT. >> MAYOR JONES: THANK YOU, ELAINA. 
          COUNCILMAN WHYTE? >> WHYTE: THANKS, MAYOR. AND THANK YOU TO COUNCILMAN GALVAN FOR PUTTING FORTH THIS CCR AND KIND OF LETTING ME JUMP THE LINE HERE SO I CAN GO TALK TO THE GIRL SCOUTS. 
          [02:45:02]
WE NEED TO FIGURE OUT HOW WE'RE GOING TO GET MORE OF THESE DATA CENTERS HERE AND WE'VE GOT TO DO IT -- WE'VE GOT TO DO IT RESPONSIBLY. 
          DO WE NEED TO HAVE SOME MORE LARGE USER POLICIES IN PLACE PROBABLY. 
          DO WE NEED TO MAKE SURE THAT, YOU KNOW, WE HAVE SOME OF THESE BUFFERS SET UP BETWEEN -- BETWEEN THE DATA CENTERS AND NEIGHBORHOODS? YES, BECAUSE WE'VE, OF COURSE, GOT TO PROTECT OUR NEIGHBORHOODS, BUT THE JOBS AND REVENUE THAT THESE DATA CENTERS CAN BRING TO OUR CITY JUST CANNOT BE IGNORED. IF YOU LOOK AROUND THE COUNTRY, INCLUDING FROM THE DATA CENTERS THAT ARE HERE, THERE'S $80,000 A YEAR PLUS JOBS FOR SOME OF THESE TECHNICIANS THAT WORK AT THE DATA CENTERS, $100,000 AND UP FOR ENGINEERS. NOT TO MENTION ALL OF THE CONSTRUCTION JOBS THAT ARE GENERATED WHEN THESE THINGS ARE BUILT. IN TERMS OF REVENUE, OBVIOUSLY THE PROPERTY TAXES FROM THE LAND INVOLVED IS A SIGNIFICANT SOURCE OF REVENUE FOR CITIES WHERE THESE DATA CENTERS RESIDE, BUT YOU'VE ALSO GOT THE PERSONAL PROPERTY TAXES THAT COME IN AS WELL ON THE EQUIPMENT USED BY THE DATA CENTERS. AND FROM WHAT I UNDERSTAND, THE EQUIPMENT AT THESE DATA CENTERS GET CHANGED OUT EVERY THREE TO FIVE YEARS, SO IT'S A SIGNIFICANT AMOUNT OF REVENUE THAT CAN BE GAINED THERE. AND, OF COURSE, FOR US HERE IN SAN ANTONIO, YOU KNOW, OUR PORTION OF THE CPS ENERGY REVENUE MAKES UP A LARGE PART OF OUR GENERAL FUND BUDGET, AND SO HAVING DATA CENTERS HERE IS GOING TO BE A BENEFIT TO US FOR EVERYTHING ELSE THAT WE WANT TO DO HERE IN THE CITY. IT SEEMS TO ME, TOO, FROM EVERYTHING I READ, THAT THE COMPANIES THAT ARE PUTTING THESE DATA CENTERS ALL ACROSS THE COUNTRY WILL FOOT THE BILL TO BE HERE, RIGHT? THEY ARE -- THEY ARE WILLING TO PAY MUCH OF THE COST OF THE INFRASTRUCTURE COST TO GET ESTABLISHED. I'LL ALSO SAY, YOU KNOW, MARIA, I DON'T KNOW IF THERE'S A -- MORE PROPERTY TAX SIGNIFICANT INVESTMENT, DENSE INVESTMENT THAT WE CAN MAKE IN OUR CITY THAN ONE OF THESE DATA CENTERS. 
          AND THEN, RUDY, MY ONE QUESTION IS, IF WE GROW THE GENERATION BASE HERE, WE CAN POTENTIALLY DRIVE DOWN THE ENERGY COSTS FOR SOME OF OUR CONSUMERS. 
          DO YOU THINK THAT'S FAIR? >> I THINK IT'S FAIR FROM A COUPLE OF PERSPECTIVES. NUMBER ONE, YOU KNOW, OBVIOUSLY THAT'S A LOT OF LOAD. I MEAN, THAT'S A LOT OF GENERATION THAT COULD BE REQUIRED OVER TIME. AND, YOU KNOW, WHETHER YOU BUILD IT, YOU BUY IT, YOU -- ON THE MARKET, WE GO OUT AND BUY MORE PLANTS, I MEAN, THAT WILL DRIVE -- YOU KNOW, WE'RE KIND OF AT CAPACITY WITH WHERE WE'RE AT RIGHT NOW WITH OUR DEBT SERVICE, YOU KNOW, TO DOING MORE. 
          BUT I THINK, YOU KNOW, AS THEY COME IN, THERE'S REVENUE ASSOCIATED WITH THAT, SO, YES, YOU KNOW, AS WE NEED TO PROCURE MORE POWER, THAT HELPS THE WHOLE SYSTEM, BUT THE POWER THAT THEY'RE -- THAT THEY WILL BE REQUIRED TO BRING TO THE TABLE IS THE SAME TYPE OF GENERATION THAT SAWS IS HAVING TO PUT ON, SO THERE'S MARKET OPPORTUNITIES FOR THOSE SMALLER GENERATORS BY WORKING TOGETHER, THAT CAN ALSO OFFSET THE NEED FOR US TO GO BUY SOME AT THE END OF THE DAY, SO I THINK THERE'S -- THERE'S A LOT OF OPPORTUNITY, WE'VE JUST GOT TO PUT ALL THE PIECES TOGETHER. 
          >> WHYTE: AND DO YOU SEE US BEING IN A POSITION, YOU KNOW, IN THE NEXT FEW YEARS TO BE ABLE TO SUPPORT MOVING MORE DATA CENTERS HERE? 
          >> IF WE ALL STAY ON THE SAME PAGE ON WHAT WE'RE TRYING TO ACCOMPLISH, 
          COUNCILMAN, YES. >> WHYTE: ALL RIGHT. AND IN TERMS OF WATER, ARE L MY L REALLY MY LAST QUESTION IS, THIS CLOSED LOOP COOLING SYSTEM THAT I THINK SOME OF THE NEWER TECHNOLOGY AND THE NEWER DATA CENTERS ARE USING USES AT LEAST -- OFFSETS SOME OF THE CONCERN ABOUT THE WATER USAGE FROM SOME OF THESE FACILITIES; IS THAT RIGHT? 
          >> IT ABSOLUTELY HELPS, AS WE TALKED ABOUT THE EEVAPORATIVE COOLING, USING IT INEFFICIENTLY IS A MAJOR LOAD ON THE SYSTEM, SO THE MORE WE CAN USE THOSE KINDS OF WAYS, THOSE KINDS OF TECHNOLOGIES THAT WILL 
          REDUCE THE WATER LOAD GREATLY. >> WHYTE: WELL, I'VE GOT A COUPLE MORE QUESTIONS ON THESE THAT MAYBE I CAN ASK OF YOU GUYS OFFLINE, BUT I DO THINK THIS IS -- WE NEED TO EMBRACE THESE DATA CENTERS. 
          THEY CAN DO -- THEY CAN DO A LOT FOR, I THINK, REVENUE MOVING INTO THE CITY, JOBS AND THINGS LIKE THAT, SO I'M FOR DOING ALL WE CAN TO FACILITATE IT. THANKS, MAYOR. COUNCILMAN GALVAN? 
          >> GALVAN: THANK YOU, MAYOR, AND THANK YOU TO EVERYBODY WHO PRESENTED 
          [02:50:01]
TODAY OVERALL, IN PARTICULAR ON THIS TOPIC. 
          I KNOW WE'VE HAD MULTIPLE CONVERSATIONS OVER THE LAST MONTH IN MULTIPLE DIFFERENT SETTINGS, VERY APPRECIATIVE, OF COURSE, ALSO OF ALL THE INDUSTRY WHO HAVE REACHED OUT SINCE THE FILING OF THE CCR, TALKING A BIT MORE ABOUT THE LOCAL IMPACT THE DATA CENTERS ARE HAVING IN DISTRICT SIX AND ACROSS THIS CITY -- HOSTING A ROUND TABLE EVENT LAST WEEK AT BROOKS WAS REALLY HELPFUL AND, OF COURSE, THANKS TO ALL THE RESIDENTS IN DISTRICT SIX WHO HAVE SHARED THEIR FEEDBACK IN LIVING NEARBY THE HIGHEST CONCENTRATION OF DATA CENTERS IN OUR CITY. SOME OF THE QUESTIONS THEY HAVE ALL HAD HAVE SHAPED THE CCR AND SHAPED A LOT OF THE CONVERSATION TODAY. 
          IN PARTICULAR, I WANT TO SHOUT OUT A COUPLE OF THE HOAS NEARBY, [INDISCERNIBLE] HAVE A LOT OF HISTORICAL KNOWLEDGE OF JUST TALKING ABOUT WHAT IT WAS LIKE WHEN THEY WERE FIRST COMING INTO OUR COMMUNITY AND WHAT IT HAS BEEN LIKE SINCE. ALL THAT SAID, I'M VERY APPRECIATIVE OF THIS CONVERSATION AND GRATEFUL WE GET TO HAVE IT HERE AT A B SESSION. ONE OF THE BIG THINGS, JUST TO GET STRAIGHT TO IT FOR THE DSD PRESENTATION, I WANT TO BE CLEAR JUST ON MY SUPPORT FOR DIFFERENT THINGS. I'M SUPPORTIVE OF THE RECOMMENDATIONS, BUT I DO THINK WE SHOULD FOCUS IT ON I-1 ZONING VERSUS C3 ZONING. I THINK FRANKLY THIS SHOULD ALL BE CONSIDERED WITHIN INDUSTRIAL, SIMILAR TO THAT OF OTHER CITIES WE'VE SEEN ACROSS THE COUNTRIES DO THIS. I THINK EVEN SPECIFIC USE AUTHORIZATION IS STILL WORTHWHILE. 1,000-FOOT BUFFER IS FINE WITH ME. 
          I'M JUST MORE EAGER TO SEE WHAT THAT EVALUATION LOOKS LIKE. 
          THOSE ARE, I THINK, MY TWO RED LINES I WOULD LIKE TO FOCUS ON. 
          OTHERWISE WITHIN THE DSD TASK FORCE, WHICH I'M EAGER TO SEE, YOU KNOW, WHAT THE COMPOSITION WILL LOOK LIKE, I THINK ALSO EXPLORING THE DEFINITION OF A DATA CENTER. I KNOW AM AMIN, YOU MENTIONED A BIT OUT OF THAT. I THINK JUST COMPREHENSIVE REVIEW OVER LANDSCAPE BUFFERS, SCREENING, LIGHTING REQUIREMENTS, AGAIN, NOTHING PRESCRIPTIVE AT LEAST FROM MY END ON EXACTLY WHAT THOSE SHOULD COME WITH, BUT I THINK THOSE SHOULD BE EVALUATED BECAUSE IT'S A LOT OF OPPORTUNITY TO ADDRESS NEIGHBOR CONCERNS THAT I'VE HEARD IN MY COMMUNITY THAT COULD HAPPEN AS WE SEE EXPANSION OF THIS INDUSTRY BE ADDRESSED MORE PROACTIVELY, GET SOME GROUND RULES FOR ALL OF THAT OUT OF THE WAY SOONER THAN LATER, OF COURSE, IN COORDINATION WITH ALL THE STAKEHOLDERS NEEDED FOR THAT CONVERSATION. 
          I THINK IN PARTICULAR ALSO PARKING REQUIREMENTS WOULD BE A GOOD CONVERSATION THERE, TOO. I'LL LEAVE THAT ONE WHERE WITH THAT IS. 
          A COUPLE QUESTIONS, I KNOW -- I FORGOT WHO MENTIONED, THERE WAS A MENTION ON CPS' TIMELINE ON SLIDE 5 OF THIS PRESENTATION, WHAT WAS THE TIMELINE FOR SOME OF THOSE CONTRACTED PROJECTS? 
          >> THANK YOU FOR THE QUESTION. FOR THE CONTRACTING PHASE AND UNDER CONTRACT, THOSE PROJECTS ARE LIKELY TO BE ENERGIZED AND EACH ONE HAS A DIFFERENT RAMP SCHEDULE. IN THE NEXT FIVE TO SEVEN 
          YEARS. >> GALVAN: THAT'S RIGHT. THANK YOU. 
          >> YES, SIR. AND THEN THE OTHERS, OBVIOUSLY MAYBE FURTHER 
          OUT. >> GALVAN: GOT IT. I THINK SIMILAR TO THE COMMENTS I MADE IN THE PREVIOUS CPS PRESENTATION REGARDING THE TIMELINE OF COST OF SERVICE STUDY, THE TIMELINE OF -- TRANSMISSION PROJECT AND EVEN NEEDS FOR THE RATE RESTRUCTURE, I THINK THAT'S HELPFUL TO KEEP IN MIND BECAUSE AS WE'RE LOOKING AT, WHAT THINGS DO WE NEED TO MAKE SURE THAT THINGS ARE GOING IN LINE WITH ALL THIS WORK AS THIS INDUSTRY GROWING IN OUR CITY. I THINK THAT WOULD BE HELPFUL TO KIND OF BETTER UNDERSTAND OVERALL WHAT OUR LOCAL ENERGY NEEDS ARE. I THINK WITHIN THE -- DO WE HAVE A TIMELINE FOR 
          THE COST OF SERVICE STUDY AT THE MOMENT? >> WE HAVE BEGUN THE WORK. IT'S PROBABLY GOING TO BE ABOUT THE NEXT THREE 
          MONTHS. IS THAT FAIR? >> GALVAN: OKAY. 
          GOT IT. AND THEN BE RELEASED IN THE NEXT THREE MONTHS OR 
          STILL SOME -- >> YES. WE ALWAYS MAKE OUR COST OF SERVICE STUDIES PUBLIC AND WE'LL ABSOLUTELY SHARE IT WITH THIS BODY 
          AND OTHERS. >> GALVAN: THANK YOU. THAT'S HELPFUL. 
          LET'S SEE, THERE'S ONE OF THE SLIDES HERE THAT TALKS ABOUT THE MEDIUM TO -- I THINK IT WAS SLIDE 12. ARE WE ABLE TO PRICE OUT THE MEDIUM AND LARGE BUSINESS COST OF SERVICE STUDY -- OR COST OF 
          SERVICE AT THIS MOMENT? >> WE DO HAVE ALL OF THAT INFORMATION FROM 2022. 
          >> GALVAN: OKAY. IF WE CAN SHARE THAT. I DON'T KNOW IF IT'S ALREADY WITHIN THE 2026 STUDY, IF THAT CAN ALSO BE BRYCEING DATA AS 
          WELL. >> IT WILL BE. >> GALVAN: THANK YOU SO MUCH. SUPPORTIVE, OF COURSE, OF THE STUDY FEES -- IN AUDIO] -- WORK RELATED ON THAT FRONT OVERALL. I REALLY APPRECIATE THE WORK THAT'S ALREADY BEEN DONE ON THE BACK END AND GRATEFUL FOR THE CONVERSATIONS YOU'VE HAD WITH MY TEAM ABOUT THAT. ON THE NEW SERVICE OPTION PILOT, I KNOW WE TALKED A LITTLE BIT ABOUT THE POTENTIAL FOR -- OR THE 
          [02:55:02]
OVERALL CONVERSATION AROUND ONSITE GENERATION AND WHAT KIND OF FUEL WILL BE THERE, DO WE HAVE ANY EXAMPLES OF DATA CENTERS ACROSS THE COUNTRY UTILIZING MORE -- AND MAYBE THIS IS CONVERSATION THAT WILL COME THROUGH WITH THE LARGER TASK FORCE -- THAT ARE USING ENERGY WITH 
          THAT TYPE OF GENERATION? >> WE DO SEE IN VARIOUS MARKETS THESE LARGE LOADS COMING WITH DIFFERENT TYPES OF GENERATION. AND, YOU KNOW, CERTAINLY HAVING RESOURCES THAT ARE LOWER CARBON ARE CERTAINLY IN ALIGNMENT WITH SOME OF THEIR CORPORATE OBJECTIVES. I WOULD SAY, YOU KNOW, CERTAINLY WITH RENEWALS HAVING LONG DURATION STORAGE IS GOING TO BE NECESSARY TO SUPPORT SOME OF THE REQUIREMENTS UNDER OUR STATE RULES, AND THAT'S WHY YOU'RE SEEING MORE OF THESE DATA CENTERS COMING WITH FIRM FUEL SUPPLY AS OPPOSED TO INTERMITTENT RESOURCES, BECAUSE WHEN THEY DO NEED TO MOVE, THEY HAVE TO GET OFF THE GRID, AND THAT'S WHERE DASH THAT'S WHERE 
          THE FIRM FUEL COMES FROM. >> GALVAN: GOT IT. 
          I THINK UNDERSTANDING THAT WILL BE HELPFUL, JUST EVEN WHERE WE'RE AT WITH BATTERY STORAGE TECHNOLOGY, ABOUT WHAT IS POSSIBLE, RIGHT, NOT ONLY MAYBE JUST THE ENERGY USE PROVIDER BUT ALSO FROM THE DATA CENTERS THEMSELVE, WHAT IS POSSIBLE WITHIN THEIR SIZE, THEIR CAPEME CAPABILITIES -- MYSELF, BUT ALSO TO MEMBERS OF MY COMMUNITY. DO WE HAVE ANY KIND OF PARTICULAR GOAL OF THAT PILOT, WHAT A SUCCESSFUL ONE WOULD LOOK LIKE, 
          SUCCESSFUL OUTCOMES? >> WE DO. AND AGAIN THE SUCCESS CRITERIA THAT BE WE'VE LAID OUT IN THE DRAFT NSO, IT'S EFFECTIVELY STUDYING THE TARIFF, ENSURING THAT WE UNDERSTAND HOW THE RESOURCES ARE USED, ENSURING THAT COSTS ARE FULLY CONTAINED WITHIN THE CUSTOMER, AND THEN JUST LOOKING AT THE EFFECTIVENESS OF HOW WE'VE STRUCTURED THE TARIFF. SO WE CAN GET YOU THOSE SUCCESS CRITERIA, BUT WE'VE OUTLINED FIVE. AND, AGAIN, THE PILOT IS INTENDED FOR TWO YEARS, YOU KNOW, FOR CUSTOMERS WHO RAISE THEIR HAND AND SAY WE'RE INTERESTED IN THIS, WE WILL LIMIT THAT. 
          WE'RE NOT OPENING IT UP TO, YOU KNOW, THE UNIVERSE. 
          >> GALVAN: RIGHT. THAT WILL BE GREAT TO REVIEW, SO THANK YOU FOR THAT. ONE LAST QUESTION FOR CPS WAS ON THE NSO -- ON THAT SAME PILOT, AND IN PARTICULAR THE TARIFF PA PORTION OF IT, WILL THAT HAVE TO COME TO COUNCIL, I KNOW YOU MENTIONED SOMETHING ABOUT IT GETTING APPROVAL, WAS THAT FOR COUNCIL OR CITY STAFF? 
          >> WE'VE UTILIZED TARIFF PILOTS IN THE PAST, AND THAT IS WORK THAT OCCURS WITH CITY STAFF. SO WE HAVE NOT BROUGHT THOSE TO COUNCIL. 
          >> GALVAN: OKAY. >> CERTAINLY IF THE PILOT APPEARS TO BE SOLVING, YOU KNOW, THE NEED IN A PERSISTENT MANNER AND IN A WAY THAT WE'VE IDENTIFIED THE IDEAL STRUCTURE, WE WOULD EMBED THAT IN AN UPCOMING TARIFF DISCUSSION AND PROPOSE A TARIFF 
          AND THE MAYOR AND COUNCIL. >> GALVAN: I THINK IN ADDRESSING PROGRESS WITH IT, IT WOULD BE HELPFUL TO GET PUBLIC CONVERSATION ABOUT IT -- OR PUBLIC UPDATE, I MEAN, OR EVEN A MEMO FROM THE CITY STAFF TO US TO COMMUNICATE WHAT'S GOING ON AS WE CONTINUE THIS CONVERSATION. AT LEAST THAT'S SOMETHING I PREFER. 
          FOR SAWS, I DON'T HAVE TOO MANY QUESTIONS. I APPRECIATE THE BRIEFING WE HAD. IT FEELS LIKE WE SAW EACH OTHER ALMOST EVERY DAY, I THINK A WEEK OR SO AGO, BUT I DID WANT TO ASK IN PARTICULAR, I KNOW WE TALKED A LOT ABOUT THE SHIFTS IN TECHNOLOGY WITHIN THE INDUSTRY TO REDUCE THE KIND OF USE OF A LOT OF WATER WITHIN THE COOLING METHODS. 
          DO WE HAVE -- DO WE KNOW HOW MANY DATA CENTERS CURRENTLY USE EVAPORATIVE 
          COOLING? >> SAY IT AGAIN. >> DO WE KNOW HOW MANY 
          LOCAL DATA CENTERS USE EVAPTIVE COOLING. >> I DON'T HAVE THE EXACT ANSWER BUT THE ONE USING EVAPORATIVE COOLING IS VERY LOW. 
          BUT IN TERMS OF A LARGER DATA CENTER, THE ONES THAT ARE OUT THERE ARE 
          USING VERY, VERY LOW AMOUNTS. >> GALVAN: GOT IT. 
          I THINK THAT WOULD BE HELPFUL. WE CAN HAVE A LARGER CONVERSATION BOTH THE SAWS [INDISCERNIBLE] INDUSTRY TO WHAT THAT LOOKS -- CORPORATE RESPONSIBILITY IN THAT FORM, MAKING SURE -- [INDISCERNIBLE] IMPROVING TO THE COMMUNITY THAT THAT IS STILL THERE. 
          I'VE HEARD FROM RESIDENTS -- WE CAN DO THAT HERE LOCALLY, BUT ALSO I THINK THERE IS THAT COMMITMENT AT LEAST WITH THE ENTITIES THAT I'VE TALKERRED TO IS MOVING TO THAT DIFFERENT TECHNOLOGY [INDISCERNIBLE] BUT ALSO HELPFUL TO MAKE SURE IT'S SUPPORTING THE REDUCTION OF A NEGATIVE IMPACT TO THE COMMUNITY, SO I THINK THAT'S SOMETHING I WOULD LIKE TO SEE HOW BE WE CAN SHARE THAT A BIT MORE 
          TO THE BROADER PUBLIC. >> AS I WOULD LIKE TO REITERATE, WE DID HAVE AN ENTITY LOOKING FOR A LARGE AMOUNT OF WATER AND WE DO HAVE OTHER 
          [03:00:03]
EVAPORATIVE COOLING AROUND THE STATE, SO WHILE I SAY I THINK GENERALLY THE INDUSTRY IS LARGELY GOING TOWARDS THAT, EVAPORATIVE COOLING IS STILL SOMETHING THAT IS USED ALL OVER AND SOMETHING WE NEED TO PAY 
          ATTENTION TO. >> GALVAN: GOT IT. THANK YOU. 
          THE ONLY THING I WAS GOING TO SAY I ALSO APPRECIATE -- AUDIO] -- THANK YOU SO MUCH. THANK YOU, MAYOR. 
          COUNCILM COUNCILMAN MCKEE-RODRIGUEZ? 
          >> MCKEE-RO THE SYSTEM IS SAYING THAT YOU DID. 
          OKAY. COUNCILWOMAN ALDARETE GAVITO. 
          >> GAVITO: THANK YOU. THANKS TO BOTH SAWS AND CPS FOR Y'ALL'S PRESENTATION. OBVIOUSLY THERE WAS A LOT OF WORK AND THOUGHT THAT WENT INTO THIS AND, YOU KNOW, I THINK THAT IT'S IMPORTANT THAT WE DO THAT WORK PROACTIVELY SO THAT WAY WE CAN MAKE SURE THE PATH FORWARD WITH DATA CENTERS DOESN'T NEGATIVELY IMPACT THE AVERAGE CUSTOMER. 
          I ALSO WANT TO THANK COUNCILMAN GALVAN FOR PUSHING THIS DISCUSSION FORWARD. THAT SAID, DATA CENTERS ARE HERE, AND MORE ARE COMING. IT'S IMPORTANT THAT WE GET AHEAD OF THE POTENTIAL LONG-TERM IMPACTS, SOONER RATHER THAN LATER. 
          MANY RESIDENTS ARE CONCERNED ABOUT THE IMPACT ON WATER SUPPLY IN OUR POWER GRID AND THE COST OF EACH OF THESE -- THOSE UTILITIES, SO I SHARE THOSE CONCERNS. SO HAVING DISCUSSIONS LIKE THIS AND BEING TRANSPARENT ABOUT IT, I THINK, IS HELPFUL WHEN WE'RE TALKING ABOUT THAT. WE ALSO DO, AS COUNCILMAN WHYTE SAID, KNOW THAT DATA CENTERS CAN CREATE ECONOMIC OPPORTUNITY AND GROWTH FOR OUR CITY, SO WE HAVE TO FIND THAT RIGHT BALANCE THAT WORKS FOR SAN ANTONIO. 
          I WAS CURIOUS ON SLIDE FIVE OF CPS' PRESENTATION, ELAINA, LIKE IF -- YOU KNOW, THE MAYOR ASKED, THAT WOULD POTENTIALLY BE SEVEN -- I FORGET -- 7 MILLION HOUSEHOLDS WITH A NEW CUSTOMER REQUEST, WHEN WE'RE LOOKING AT THE FUNDS -- AND THIS IS QUICK MATH -- FOR THE UNDER CONTRACT HOW MANY MILLIONS OF DOLLARS WOULD THE CITY POTENTIALLY GET 
          BACK? >> YEAH. FOR -- WE'RE ESTIMATING FOR EACH 100 MEGAWATTS, THAT THE CITY WOULD HAVE AN INCREASE IN CITY PAYMENT OF 8 MILLION. AND SO YOU CAN JUST TAKE THAT 100 AND MULTIPLY IT THROUGH THE VARIOUS BANDS. SO WE DO EXPECT TO SEE INCREASES IN REVENUE, NOT ONLY FOR CPS ENERGY, BUT OBVIOUSLY FOR CITY PAYMENT. AND AS I MENTIONED, WITH THAT PIE CHART, IT'S NOT ONLY REVENUE, BUT IT'S REVENUE OF THAT LARGE CUSTOMER CLASS, WHICH THEY WILL NATURALLY BEAR MORE OF THE COST OF OUR SYSTEM, WHICH WILL REDUCE 
          THAT SYSTEM COST FOR RESIDENTIAL CUSTOMERS. >> GAVITO: FOR RESIDENTS. AND I CAN'T REMEMBER WHAT SLIDE, BUT THE PIE CHART WHERE IT TALKED ABOUT THE RESIDENT PAYMENT AND THE BUSINESS PAYMENT, I THOUGHT THAT WAS AN INTERESTING BREAKDOWN, BECAUSE I THINK THAT IS SOMETHING THAT WE NEED TO KEEP IN MIND. I ASK THAT QUESTION, BECAUSE, YOU KNOW, AGAIN, THOSE DOLLARS WILL AFFECT OUR CITY'S GENERAL FUND, SO WE NEED TO THINK ABOUT THAT BECAUSE, YOU KNOW, WE'RE ALL WANTING TO SPEND MORE MONEY ON NONPROFITS, WE'RE ALL WANTING TO SPEND MONEY ON HOMELESSNESS AND STUFF, SO WE JUST NEED TO BE COGNIZANT OF -- OF ANY UNINTENDED CONSEQUENCES WE COULD HAVE IF WE REALLY START LIMITING THIS AND, YOU KNOW, SWING THE PENDULUM ONE WAY TOO FAR. 
          I DO ALSO THINK,  AMIN, FOR THE UDC AMENDMENTS, PARTNERS IN OUR COMMUNITY AND DATA CENTER OR CURRENT DATA CENTER PARTNERS OR ANYBODY IN THE DATA CENTER WORLD CONSULTED WITH THESE RECOMMENDATIONS? 
          >> NO, WE HAVEN'T TALKED TO ANYBODY YET. IF COUNCIL DIRECTS US TO START THAT PROCESS, WE WILL GO THROUGH THAT PROCESS AND GET 
          FEEDBACK. >> GAVITO: YEAH. IS THERE A REASON THAT THEY WRNTD CONSULTED? I WOULD SEE THEM AS IMPORTANT STAKEHOLDERS? 
          >> YEAH. ORIGINALLY THIS PRESENTATION WAS MAINLY -- THE BIGGEST COMPONENT WAS THE UTILITIES, BUT -- 
          >> I JUST WANT TO BE CLEAR, COUNCILWOMAN, THESE ARE POTENTIAL OPTIONS, NOT RECOMMENDATIONS. THE CONVERSATION HASN'T STARTED. THIS IS THE VERY BEGINNING OF THE CONVERSATION. WE FULLY INTEND TO SPEAK TO CURRENT DATA CENTER 
          PROVIDERS BEFORE ANYTHING IS PROPOSED. >> GAVITO: THANK YOU. 
          AND THANKS FOR THAT CLARIFICATION. BECAUSE I DEFINITELY WOULD WANT US TO CONSULT WITH PARTNERS WHO ARE ALREADY HERE, BUT ALSO, TOO, AS WE'RE LOOKING TO SEE -- I BELIEVE THAT PHOENIX JUST DID A -- WHAT'S GOOD AND WHAT'S NOT SO GOOD, IN TERMS OF ZONING REQUIREMENTS, AND SO LEARNING FROM OTHERS, AS WELL AS STAKEHOLDERS HERE, I THINK, WOULD BE BEST BEFORE WE KIND OF JUMP TO ONE PARTICULAR POINT ON HERE OR THE 
          OTHER. >> ABSOLUTELY. >> GAVITO: YEAH. 
          AND I DO WANT TO ECHO WHAT RUDY MENTIONED, I DO THINK THAT IF WE -- IF WE MAKE IT HARDER FOR BUSINESSES TO DO HERE, WHETHER IT'S THROUGH CPS, 
          [03:05:01]
WHETHER IT'S REZONING OR NOT, WE COULD HAVE UNINTENDED CONSEQUENCES OF LOBBYISTS GLOING TO AUSTIN AND SAYING, HEY, BREAK THIS STUFF UP, BREAK UP CPS OR WHATEVER, AND THAT WOULD HAVE A TREMENDOUS NEGATIVE IMPACT ON US. AND SO, YOU KNOW, I DEFINITELY WANT US TO THINK A COUPLE STEPS AHEAD BEFORE WE MAKE BIG DECISIONS. 
          BUT THANK YOU FOR THAT CLARIFICATION. DO WE -- I HAD SOME TECHNICAL QUESTIONS. DO WE HAVE ANY DATA CENTERS CURRENTLY OVER THE RECHARGE ZONE? I COULDN'T TELL OVER THAT MAP. 
          >> I'LL GET BACK WITH YOU WITH THE SPECIFICS. THEY ARE ALL -- THEY ALL SEEM TO BE OFF OF THE RECHARGE ZONE. WE DO HAVE SOME DEVELOPMENT RULES OVER THE RECHARGE ZONE, SO IF THEY'RE THERE -- 
          >> GAVITO: YEAH. >> THEY'RE CLOSE. I'LL GET BACK TO YOU. 
          >> GAVITO: OKAY. THANK YOU. THAT WILL BE HELPFUL. 
          ALSO, TOO, WHILE WE'RE GETTING THAT INFORMATION, I THINK IT WOULD BE HELPFUL TO UNDERSTAND IF THEY ARE OVER THE RECHARGE ZONE, IF THERE'S ANY POTENTIAL NEGATIVE IMPACTS WITH THAT AS WELL. 
          I KNOW WE JUST WENT THROUGH THE WHOLE [INDISCERNIBLE] WE JUST NEED TO BE VERY CAREFUL WHAT'S GOING OVER OUR RECHARGE ZONES. 
          YOU KNOW, I THINK IN ONE OF THE THINGS THAT COUNCILMAN GALVAN AND I HAD BRIEFLY TALKED ABOUT, TOO, IS JUST THE POTENTIAL IMPACT OF DATA CENTERS BEING NEAR PARKS, NEAR WILDLIFE, NEAR SCHOOLS, NEAR RESIDENTS, AND I THINK THAT THOSE ARE ALL THE BIG QUESTIONS LOOMING OVEROUR HEADS. 
          SO I DEFINITELY APPRECIATE CPS' AND SAWS' APPROACH  BUT ALSO LETTING US KNOW HOW IT DOES IMPACT RESIDENTS AND PARKS AND ALL THAT KIND OF STUFF. I KNOW SOUND IS A BIG ISSUE, RIGHT? THAT SOUND BUFFER IS A BIG ISSUE FOR DATA CENTERS, SO I JUST WANT US TO THINK THROUGH ALL OF THAT WHEN THIS CONVERSATION DOES PROGRESS. ONE OF THE THINGS THAT I HAD HEARD ABOUT DURING SOME OF THESE CONVERSATIONS WAS AN IDEA OF -- AND I DON'T KNOW. 
          I DON'T KNOW THE ANSWER. I JUST WANT TO TALK THROUGH IT, ARE THERE WAYS FOR DATA CENTERS TO SUPPORT POTENTIAL SURROUNDING NEIGHBORHOODS IN CASES LIKE A WINTER STORM URI? COULD THEY HELP SURROUNDING NEIGHBORHOODS WITH BACKUP ELECTRICITY IN AN INSTANCE OF URI? 
          >> YEAH. IT'S POSSIBLE THERE COULD BE -- WE WOULD NEED TO, LIKE, DO A SPECIFIC PROGRAM TO FIGURE OUT HOW TO USE THAT GENERATION 
          RESOURCE, YOU KNOW, AS A MICROGRID. >> GAVITO: RIGHT, RIGHT, 
          RIGHT. >> SO YOU'VE GOT TO FIGURE OUT HOW BIG OF AN 
          AREA IT COULD SERVE, BUT IT'S POSSIBLE. >> GAVITO: I WOULD THINK, AND MAYBE DISTRICT SIX WILL BE COVERED IN THIS SIX, BUT I WOULD THINK IT WOULD BE COOL IF DATA CENTERS DO WANT TO COME INTO OUR CITY, YOU KNOW, MAYBE THAT'S ONE OF THE REQUIREMENTS THAT WE TALK ABOUT. 
          HEY, YOU WANT TO BE IN THIS AREA, WELL, THEN YOU NEED TO MAKE SURE YOU CAN SUPPORT SURROUNDING NEIGHBORHOODS IN THE CASE OF A POWER OUTAGE OR DAYS LONG POWER OUTAGE, JUST SOMETHING DIFFERENT TO THINK ABOUT. 
          YOU KNOW, AND I KNOW COUNCILMAN GALVAN DID TALK ABOUT A HIGH CONCENTRATION OF THESE DATA CENTERS IN DISTRICT SIX, AND SO, YOU KNOW, I'M ASSUMING THERE'S NO SPECIFIC ENERGY IMPACTS ON THESE DIRECT NEIGHBORS. AM I RIGHT IN THAT ASSUMPTION? 
          >> YES, MA'AM. SO ANY TIME WE ARE STUDYING NEW CUSTOMERS, ESPECIALLY NEW LARGE CUSTOMERS, WE TAKE THAT PERSPECTIVE LOAD AND RUN IT THROUGH A SERIES OF MODELS AND ENSURE THAT WE CAN SUPPORT THE LOAD RELIABLY, AND WE LOOK IT BOTH AT THE -- DISTRIBUTION SYSTEM. SO AT NO TIME ARE WE GOING TO BRING ON LOADS THAT WE CAN'T SUPPORT RRELIABLY. WE DO NOT WANT TO HAVE LARGE LOADS THAT RESULT IN POWER QUALITY ISSUES FOR THE BALANCE OF OUR CUSTOMERS. SO VERY STRICT STUDIES. THESE EXTREMELY LARGE LOADS THAT ARE ABOVE 75 MEGAWATTS, THEY ALSO GO THROUGH AN ERCOT STUDY. 
          >> GAVITO: SO DISTRICT SIX RESIDENTS AREN'T SEEING THIS IMPACT. 
          >> THERE ARE MORE OF -- WHEN YOU LOOK AT THE MAP, THERE ARE CERTAINLY MORE OF THESE LOADS IN CERTAIN PARTS OF OUR SERVICE TERRITORY, BUT THAT IS NOT CAUSING RELIABILITY ISSUES FOR ADJACENT AREAS. 
          >> GAVITO: THAT'S WHAT I'M ASKING. WHEN YOU LOOK AT THAT MAP AND YOU SEE ALL OF THOSE CIRCLES SPECIFICALLY IN DISTRICT SIX, YOU KNOW, WE WANT TO MAKE SURE IT'S NOT NEGATIVELY IMPACTING CERTAIN RESIDENTS IN CERTAIN AREAS MORE THAN OTHERS. SO THANK YOU FOR THAT CLARIFICATION. ON THE SAWS PRESENTATION ON SLIDE 8, WAS THIS 
          [03:10:07]
UNINTENTIONAL SHIFT FROM 2023 TO 2025 USING MORE POTABLE WATER TO MORE 
          RECYCLED? >> I BELIEVE SO. ACTUALLY THE 2024 TO 2025, YES, I THINK SOME OF THAT WAS FROM MICROSOFT. 
          THEY SHIFTED SOME FROM THE POTABLE SIDE ONTO THE RECYCLED SIDE. 
          THAT SPEAKS TO SOME OF THE INNOVATION, SO, YES. >> GAVITO: YEAH, I THINK IT'S DEFINITELY WORTH MAXIMIZING THE USE OF RECYCLED WATER WHEN IT COMES TO DATA CENTERS, BECAUSE WE NEED TO OBVIOUSLY PROTECT OUR DRINKING WATER AT ALL COSTS. WELL, THOSE ARE ALL MY COMMENTS. THANKS AGAIN TO COUNCILMAN GALVAN FOR BRINGING THIS DISCUSSION TO THE FOREFRONT. I THINK IT'S AN IMPORTANT ONE, AND LOTS OF ITEMS FOR US TO CONSIDER MOVING FORWARD. 
          THANK YOU. COUNCILMEMBER VIAGRAN? >> VIAGRAN: THANK YOU, MAYOR. THANK YOU FOR THE PRESENTATION.  AS I'VE STATED BEFORE WHEN WE TALKED ABOUT THIS IN GOVERNANCE, I WOULD BE LOOKING AT SPECIFIC WAY TO ADDRESS DISTRICT THREE ISSUES BECAUSE OF THE LACK OF INFRASTRUCTURE THERE, SO I BROUGHT IN A TEAM -- OR PROFESSOR TO COME IN AND HAVE THAT CONVERSATION. AND AS I WAS DOING THAT, IN BOTH -- AND BOTH SAWS AND CPS HAVE BEEN WITH ME THROUGH THIS PROCESS OF SUSTAINABILITY AND RESILIENCY FOR THE LAST FOUR YEARS, SO I APPRECIATE Y'ALL BEING THERE FRIDAY. AS I LOOKED AT IT, I LOOKED AROUND THE ROOM, WHO WOULD BE INTERESTED IN THIS AND WHO COULD HELP. I WANT TO THANK COUNCILMAN GALVAN FOR COMING, BECAUSE HE'S GOT THE CONCENTRATION OF DATA CENTERS AND COUNCILMAN MUNGIA, BECAUSE HIS AREA IS VERY SIMILAR TO MINE IN INFRASTRUCTURE, AND THEN COUNCILWOMAN SPEARS WHO IS LIKE-MINDED WITH ME IN TERMS OF AS WE LOOK FORWARD TO NUCLEAR ENERGY AND WHAT DO WE ASK THESE DATA CENTERS COMING IN. 
          THE ONE THING THAT I THINK OUR GOAL IS, AND THIS IS A GREAT BEGINNING CONVERSATION, AND I LOVE HEARING ALL THE INPUT FROM THE COUNCILMEMBERS HERE, BUT THIS IS THE BEGINNING. WE NEED TO START LOOKING DISTRICT BY DISTRICT WHERE THESE DATA CENTERS WANT TO COME AND WHERE WE LIVE IN THE STATE OF TEXAS. THE REASON THEY ARE HERE, THE REASON THEY'RE KNOCKING ON THE DOORS AND, YOU KNOW, I -- I HAVE -- I HAVE THREE THAT HAVE, YOU KNOW, THROUGH OTHER PARTIES HAVE SAID, HEY, WE LIKE YOUR AREA. SOME SPECULATIVE, SOME WHO HAVE ACTUALLY PURCHASED PROPERTY. AND PART OF IT IS BECAUSE OF OUR UTILITIES. 
          I'VE GOT CPS, WHO HAS BEEN INNOVATIVE, WHO HAS SERVED SOUTH TEXAS, WHO HAS FROM GENERATIONAL PLANNING TO SERVICE, ALL IN ONE -- IN ONE STOP. 
          I HAVE SAWS THAT KNOWS HOW TO RECYCLE WATER, THAT KNOWS HOW TO USE WATER IN DROUGHTS, THAT HAS BEEN PROVEN FOR GENERATIONS ABOUT WHAT WE DO. I MEAN, I LOOK AT MITCHELL LAKE, WHICH SITS IN MY DISTRICT, AND I WAS LIKE, WE'VE GOT A PROBLEM, SAWS KNOWS HOW TO FIX IT. SO HERE THEY ARE AND THEY'RE KNOCKING ON OUR DOOR, BUT WHAT DO WE DO? AND THE THING IS, I DON'T THINK WE JUST HAVE THE OPPORTUNITY TO LOOK AT THIS AND MAYBE COPY WHAT OTHER PEOPLE DO, BUT WE HAVE THE OPPORTUNITY RIGHT NOW TO LEAD IN TEXAS, TO CREATE A PLAYBOOK WHERE THE REST OF SOUTH TEXAS AND THE MEGAREGION, AS SECRETARY SIS NARRO CISNEROS LIKES TO CALL IT, LOOK AT WHAT THE TEAM IN SAN ANTONIO HAS DONE. LET'S START ASKING THOSE QUESTIONS. 
          WE KNOW THE DATA CENTERS ARE COMING, BUT WE WANT THEM TO GIVE BACK TO THE COMMUNITY, TO MAKE SURE -- BECAUSE THEY'RE HERE. 
          THEY'RE HERE. SO I REALLY WANT TO BE THOUGHTFUL AS WE HAVE THIS CONVERSATION SO I WANT TO KEEP MY COMMENTS BRIEF AND SHOW MY APPRECIATION FOR YOU GUYS GUYS COMING, BUT THERE'S A LOT OF WORK AHEAD OF US IN TERMS OF THIS PROCESS. AND THE ONE SPECIFIC THING THAT I WANTED TO TALK ABOUT IS UDC CODE, BECAUSE I'VE SAT ON THIS COUNCIL FOR FOUR YEARS, ONE OF THE FIRST THINGS WE DID WAS UDC CODE. 
          BRINGING HOME STAKEHOLDERS, I JUST DO NOT FEEL THAT -- IF WE'RE GOING TO GO THROUGH THAT PROCESS, AND MARIA, YOU CAN CHIME IN, TOO, SHOULDN'T WE BE LOOKING AT THIS BIGGER PICTURE, WHERE WE'RE NOT JUST LOOKING AT DATA CENTERS, BUT WE'RE LOOKING AT WAREHOUSES THAT WANT TO FUNCTION AS DETENTION CENTERS, TOO? LIKE I WANT TO BE ABLE -- IF WE'RE GOING TO CHANGE UDC CODE, I WANT TO GET POLICY DONE. 
          SO, AMIN, TALK ME THROUGH THE MONTH-LONG, YEAR-LONG PROCESS, BECAUSE WE DO IT EVERY FIVE YEARS AND WE START EARLIER AND EARLIER WITH REVIEWING THE UDC CODE, WHAT WE LOOK AT. BECAUSE WHAT MAY WORK FOR AN EYE IN DISTRICT SIX OR DISTRICT 9 OR 10 DOES NOT NECESSARILY WORK WHERE I -- LIKE MY LEGIT -- I HAVE LEGIT INDUSTRIAL IN SOUTH TEXAS. WE HAVE TOYOTA, WE HAVE 
          [03:15:04]
JCD. WE HAVE -- WE HAVE INTERNATIONAL. 
          SO THAT'S WHERE WE BRING THE STAKEHOLDERS TOGETHER. 
          SO HOW LONG WOULD THIS PROCESS TAKE AND, ANDY, YOU CAN ANSWER THE QUESTION, OR MARIA, WOULD THIS BE SPOT ZONING, BECAUSE THAT'S THE OTHER THING I DON'T WANT TO GET INTO THE TROUBLE. OH, WELL, FOR THIS SPOT, YOU CAN'T, BUT OVER HERE, YOU CAN. SO CAN YOU ANSWER A LITTLE ABOUT HOW LONG THAT PROCESS IS GOING TO TAKE? 
          >> SURE. SO AS YOU MENTIONED, COUNCILWOMAN, NORMALLY WE UPDATE THE UDC EVERY FIVE YEAR, AND THE OVERALL PROCESS TAKES ABOUT A YEAR AND A HALF FROM THE TIME WE START TO THE TIME WE END, BECAUSE WE GO THROUGH A FULL PROCESS, AS YOU MENTIONED, STAKEHOLDERS AND THEN WE GO THROUGH THE PTAC AND THEN WE GO THROUGH THE ZONING COMMISSION, PLANNING COMMISSION AND THEN TO COUNCIL. SO IT'S A FULL PROCESS, AND A LONG BRO SES. THAT'S WHY NORMALLY WE DON'T LIKE TO UPDATE THE UDC OUT OF CYCLE, BECAUSE, AGAIN, THE PROCESS IS REALLY LENGTHY. IF THIS TOPIC AGAIN, YOU DIRECT US TO WORK ON IT, MY RECOMMENDATION IS TO WORK ON IT WITH NEXT CYCLE, WE'RE GOING TO START MIDYEAR THIS YEAR, INTERNAL REVIEWS, AND THEN THE WHOLE PROCESS WILL BE STARTING FROM BEGINNING OF THIS COMING YEAR, 2027, TILL THE END OF THE YEAR, SO WE CAN GO THROUGH THE WHOLE PROCESS AND IDENTIFY ANY UPDATES 
          THAT WE NEED TO TAKE. >> VILLAGOMEZ: AND COUNCILWOMAN, ONE OF THE THINGS -- ONE OF THE ITEMS THAT WE'RE GOING TO DISCUSS TOMORROW AT A SESSION IS A RESOLUTION TO BEGIN A PROCESS RELATED TO ZONING CHANGES FOR DETENTION FACILITIES, PRIVATELY OWNED DETENTION FACILITIES. 
          SO WHAT WE'RE GOING TO REVIEW WITH YOU TOMORROW IS OUR NORMAL PROCESS, AND AS AMIN MENTIONED, WE TRY TO DO THAT EVERY FIVE YEARS. 
          BUT THE POLICY DISCUSSION OF THIS BODY IS DO SOMETHING OUT OF CYCLE, TOMORROW W WE'LL SHOW YOU A COUPLE OF WAYS TO GET TO THAT. 
          THERE'S SOME REQUIREMENTS THAT  WE HAVE TO FOLLOW THAT WE MUST DO, SO WE'LL HAVE OUR NORMAL PROCESS AND AN EXPEDITED PROCESS FOR DISCUSSION TOMORROW. 
          >> SEGOVIA: AND TO ANSWER YOUR QUESTION ON SPOT ZONING COUNCILWOMAN, THE PROCESS IS DESIGNED SO WE DON'T END UP WITH A RESULT THAT CAN BE 
          CHARACTERIZED AS SPOT ZONING. >> VIAGRAN: THANK YOU, ANDY. AND THAT'S WHAT I WANT OUR COUNCIL TO UNDERSTAND, IS AS WE LOOK AT THIS PROCESS AND WE ASK -- WE ASK FOR POTENTIALLY UDC AMENDMENTS THAT WE START LOOKING BACK AT WHAT WE HAVE SITTING IN OUR DISTRICTS, WHERE WE'RE LIKE, WE KIND OF WANT TO DO A LITTLE MORE THAN JUST THE DATA CENTER, BECAUSE WE'RE NOT -- WE WANT TO DO MORE THAN JUST THAT. SO IT LOOKS LIKE WE'RE LOOKING AT HOW WE HOON PLAN AND HOW WE MOVE FORWARD WITH SA TOMORROW. ESPECIALLY WHEN IT ENDS WITH US ENTERING INTO ANOTHER LEGISLATIVE SESSION, AS WE SEE THINGS MOVING AND IN GROWTH, WE DO THIS IN A PROCESS THAT WE CAN COVER THE THINGS THAT HAVE BEEN CONCERNING OUR DISTRICTS FOR SOME TIMES GENERATIONS, BUT DEFINITELY FOR YEARS. 
          SO I JUST WANT TO MAKE SURE I -- I APPRECIATE YOU GUYS, IT'S NOT THAT I DON'T LIKE THE UDC AMENDMENTS. I APPRECIATE THEM, I JUST THINK -- I KNOW HOW LONG THIS TAKES AND I THINK IF WE CAN WORK IN CONJUNCTION OF DOING WHAT WE'RE DOING IN DISTRICT THREE AND WHAT I'M DOING WITH THE OTHER COUNCILMEMBERS AND ASK THE QUESTIONS, GET OUT TO THE COMMUNITY, SEE WHAT BEST QUESTIONS WE CAN ASK, HAVE SAWS AND CPS DO WHAT THEY'RE DOING AND CONTINUE TO COMMUNICATE WITH EACH OTHER, THEN WE CAN LOOK AT THAT NEXT CYCLE OF UDC CODES WHERE WE HAVE PUT TOGETHER SOMETHING THAT ADDRESSES A NUMBER OF ISSUES AS WE UPGRADE OUR UDC AMENDMENTS. SO THANK YOU FOR THE PRESENTATION. 
          I THINK THIS BEGINS, BUT, AGAIN, I WILL REITERATE, I THINK THAT THIS IS SOMEPLACE BECAUSE OF THE WAY THIS TEAM WORKS TOGETHER, THAT WE'RE TEAM SAN ANTONIO, THAT WE CAN LEAD DEFINITELY THE REGION, BUT I THINK THE STATE OF TEXAS. SO THANK YOU. THANK YOU, MAYOR. 
          COUNCILMEMBER MUNGIA? >> MUNGIA: THANK YOU, MAYOR. 
          AND I DO WANT TO THANK COUNCILMAN GALVAN FOR WRITING THIS. 
          THERE'S BEEN A LOT OF ATTENTION ON THIS ISSUE IN OUR CITY AND ACROSS THE COUNTRY AND IT'S FINALLY TIME TO SIT DOWN AND LOOK AT ALL THE FACTS AND LOOK AT WHAT WE HAVE HERE AND SEE WHAT WE CAN DO TO MAKE THINGS BETTER. IT CAME UP AT ONE OF OUR MEETING, WE HAD A MARBACH SAFETY MEETING OF ALL THINGS DATA CENTERS CAME UP AND THANKFULLY COUNCILMAN GALVAN WAS THERE TO ANSWER THE QUESTIONS FOR ME. 
          ONE OF THE MAIN THINGS I WAS ALWAYS ADVOCATING FOR AT THE VERY BEGINNING OF THIS CCR -- NETWORK IS GOING TO BE CRUCIAL, NOT JUST FOR DATA CENTERS, BUT TO COUNCILWOMAN VIAGRAN'S POINT, ALL THE LARGE WATER USERS IN THE CITY COMMERCIALLY SPEAKING, OF COURSE, THAT'S A LOT IN OUR DISTRICT, I HAVEN'T SEEN THOSE NUMBERS. THOSE ARE EVEN, YOU KNOW, PLACES THAT CAN USE THE 
          [03:20:02]
NONPOTABLE WATER AS PART OF THAT. AND IT'S A DELICATE ISSUE, I KNOW WE'RE TRYING TO KEEP IT AFFORDABLE AND UNDER THE POTABLE WATER RATES. I KNOW THAT'S A DELICATE BALANCE YOU HAVE TO STRIKE, BUT I DO THINK, YOU KNOW, HAVING NEW CENTERS COME IN, IF THEY CAN BE ON THE PURPLE PIPE OR CONTRIBUTE TO THE CONSTRUCTION EXPANSION OF THE PURPLE PIPE IS THE WAY TO GO. I KNOW THAT'S AN EXTRA COST ONTO THEM, BUT TO PRESERVE THE NETWORK AND EXPAND IT, I THINK THAT'S GOING TO BE IMPORTANT AND TO SAVE POTABLE WATER AS MUCH AS POSSIBLE. 
          AND MAYBE, YOU KNOW, WE HAVE TO LOOK INTO WHAT THE LEGAL ISSUES ARE, RIGHT, IN SOME OF THE FOLKS ALREADY HERE PROBABLY WOULD BE GRANDFATHERED IN, BUT I DO THINK IT'S WORTH EXPLORING BECAUSE WE DO NEED SIGNIFICANT INVESTMENT IN THOSE THAT ARE ABLE TO USE THAT AND TAKE UP SIGNIFICANT WATER SHOULD BE ABLE TO HELP CONTRIBUTE TO THAT NETWORK. AND QUICK QUESTION, WHAT'S THE FURTHEST YOU CAN BE FROM THE PURPLE PIPE TO BE ABLE TO CONNECT? 
          >> I WOULD SAY WITHIN THE CONTINENTAL 48. NO, I THINK -- 
          [LAUGHTER] >> IT'S JUST HOW BIG OF A LINE AND HOW BIG OF A PUMP YOU WANT TO DO. WE HAVE A LOT OF DIFFERENT AREAS AGAIN, IT'S SITE-SP -SPECIFIC, SO THERE ARE CERTAIN AREAS THAT HAVE MORE CAPACITY THAN THE OTHERS. YOU CAN DO A LOT WITH PIPES AND PUMPS AND TANKS, AND I THINK WE CAN -- I DON'T KNOW THAT WE NEED TO CONSTRAIN IT. FOR EXAMPLE, AUSTIN, I THINK I MENTIONED, HAS IF YOU'RE WITHIN 500 FEET OF THE LINE, YOU NEED TO BE ON RECYCLE. 
          I THINK THAT'S HELPFUL, BUT YOU CAN CERTAINLY BUILD THE LINE A LOT FURTHER. AND THAT GOES TO JUST THE EXPANSION PART THAT YOU'RE TALKING ABOUT, AND I THINK ON THE OPPORTUNITY SIDE, I MENTIONED THE RISK AND OPPORTUNITIES. ON THE OPPORTUNITIES SIDE, TO THE EXTENT WE CAN GET DATA CENTERS TO HELP OUT IN PAYING FOR THIS EXPANSION, THAT HELPS EVERYBODY, OVER ON THE POTABLE SIDE, BUT ALSO BRINGING RECYCLED INTO NEIGHBORHOODS AND PARKS AND THAT SORT OF 
          THING. >> MUNGIA: YEAH, I DON'T WANT TO JUST PUT IT ON THEM, SOME OF THE OTHER LARGE USERS, JUST BROADLY SPEAKING, SO I THINK THAT'S KIND OF A GOOD WAY TO DO THAT. SO THANK YOU, SIR. 
          I APPRECIATE THAT. AND I AGREE WITH SOME OF MY COLLEAGUES, YOU KNOW, WE DO HAVE TO DO A LONGER PROCESS FOR THE AMENDMENTS AND, YOU KNOW, I KNOW A LOT -- WHEN IT COMES TO ZONING, WAY PT TO BE DELICATE WITH THAT, BECAUSE I KNOW SOME OF THE DATA CENTERS LIKE TO BE CLUSTERED BECAUSE I THINK IT'S MORE ENERGY EFFICIENT FOR THEM AND IT'S EASIER TO HAVE THOSE TYPE OF CPS SERVICES OR THINGS THEY HAVE TO PAY FOR CLOSER TO THEM WITHIN A CERTAIN RADIUS OF EACH OTHER. AND I DO THINK, WE CAN HAVE THIS DISCUSSION AT PCDC, TOO, WE SHOULD PROBABLY START THAT STAKEHOLDER DISCUSSION NOW, EVEN IF WE HAVE SOME UDC AMENDMENTS THAT MOST OF US CAN AGREE WITH, WE CAN STILL TACK IT INTO THE REGULAR '27 PROCESS, BECAUSE I THINK IT'S KIND OF A BIG DEAL AND WE HAVE TO HAVE A LOT OF TIME FOR THIS ONE, SO I DON'T THINK WE SHOULD WAIT TO START THE PROCESS TO BEGIN THE CONVERSATION. WE SHOULD START NOW AND THEN HOLD THAT AS WE GET INTO THE '27 PROCESS. AND, YOU KNOW, BEHIND THE METER GENERATION, CAN YOU TALK TO ME A LITTLE BIT MORE ABOUT THAT. SO WHAT DOES THAT LOOK LIKE AND ARE THERE CERTAIN CONDITIONS THAT SOME CENTERS ARE REQUIRED TO HAVE THAT OR IS IT JUST OPTIONAL ON THEIR END? 
          >> SO WE HAVE CUSTOMERS THAT UTILIZE BEHIND THE METER GENERATION OR UTILIZE GENERATION. SAWS IS ACTUALLY ONE. WE'VE BEEN WORKING WITH SAWS TO INSTALL GENERATION AT VARIOUS PUMP STATIONS FOR RESILIENCY. URI TAUGHT US A LOT ABOUT THE IMPORTANCE OF THAT RIDE-THROUGH CAPABILITY AND WE HAVE OTHER CUSTOMERS THAT HAVE IT. 
          CURRENT DATA CENTERS, MANY HAVE DIESEL GENERATORS THAT ARE BACKUP. AND ULTIMATELY, THEY'RE UTILIZED IN THOSE APPLICATIONS PREDOMINANTLY FOR RIDE-THROUGH, SO WHEN THERE'S AN INTERRUPTION, THEY CAN GO ON THEIR BACKUP GENERATORS AND MAINTAIN HIGH AVAILABILITY OF THE DATA CENTERS. 
          AND SO, YOU KNOW, AS WE -- AS WE SEE THE GROWTH IN THE STATE, YOU KNOW, I MENTIONED -- I MENTIONED A PARTICULAR PIECE OF LEGISLATION, THERE'S RECOGNITION THAT WITH THIS GROWTH, THERE'S A NEED TO -- DURING TIGHT GRID CONDITIONS HAVE FLEXIBILITY FOR THESE LARGE LOADS TO MOVE OFF OF THE GRID, SO THESE -- YOU KNOW, THESE CUSTOMERS WOULD HAVE -- AND WE'VE TALKED ABOUT, YOU KNOW, CERTAIN TYPES OF RESOURCES, IT COULD BE FUEL CELLS, IT COULD BE NATURAL GAS GENERATION, MENTIONED DIESEL GENERATION. IT COULD BE BATTERIES, IT COULD BE OTHER TYPES OF STORAGE TECHNOLOGY. BUT ULTIMATELY CUSTOMERS WOULD MAKE DECISIONS AROUND THE BACKUP CAPABILITY THAT THEY HAVE. 
          AND THEY COULD RUN THOSE, YOU KNOW, AS THEY NEED. BUT ALSO, YOU KNOW, OBVIOUSLY DURING THOSE TIMES OF TIGHT GRID CONDITIONS WOULD GO ONTO THOSE BACKUP GENERATORS AND MOVE THAT LOAD OFF THE GRID SO THAT ULTIMATELY THE STATE, YOU KNOW, CAN RIDE THROUGH TIGHT CONDITIONS 
          RELIABLY. >> MUNGIA: AND WOULD THAT BE THE ONLY TIME THEY'D BE ABLE TO GET ONTO THE BACKUP GENERATION, OR WOULD THEY HAVE THE OPTION TO JUST -- LIKE MAYBE DURING PEAK TIMES IF THEY WANT TO GET ON 
          [03:25:03]
THEIR OWN GENERATION. ARE THEY ABLE TO DO THAT NOW? 
          >> YES, THEY WOULD BE ABLE TO DO THAT. >> MUNGIA: OKAY. 
          I THINK MAYBE A DEEPER DIVE AS TO WHAT THAT LOOKS LIKE, WE HAD A GREAT CONVERSATION IN THE D3 OFFICE, AND I KNOW WITH SOME OF THE NATURAL GAS GENERATION, THAT MIGHT BE SOMEWHAT NOISY, RIGHT, LIKE THE WAY IT KIND OF PROCESSES IN THE BUILDING OR THE PLANT, I ASSUME, OR IF THERE'S SOME SORT OF, YOU KNOW, THINGS THAT PEOPLE CAN SMELL IN THE NEIGHBORHOOD AROUND THEM, SO I'M JUST KIND OF CURIOUS WHAT THAT LOOKS LIKE AND HOW LOUD THAT GENERATION CAN GET AT THAT BUILDING, WITH CONSIDERATION THE RESIDENTS BECAUSE THAT CAN INFORM US ON THE SETBACK REQUIREMENTS TO RESIDENTIAL PROPERTIES AS WELL, SO I THINK THAT WOULD BE REALLY BENEFICIAL FOR US TO SEE. THANK YOU. 
          >> YES. >> MUNGIA: YOU KNOW, ALSO WHAT COUNCILMAN GALVAN SAID, EVEN THE LANDSCAPING REQUIREMENTS, I REMEMBER THE BATTLE WITH MICROSOFT, AND SO MAYBE IT'S NOT 25-YEAR-OLD OAK TREES THAT GET PLANTED, BUT IT IS SOMETHING SIGNIFICANT TO HELP WITH SOUND MITIGATION, WITH AIR POLLUTION, AND SOME OVERALL AESTHETIC ISSUES THERE, BUT I AM VERY EXCITED ABOUT THE DISCUSSION. 
          I THINK THERE'S A LOT OF GOOD SOLUTIONS WE CAN LOOK FORWARD TO. 
          AND I'M GLAD THAT, YOU KNOW, OUR DISCUSSION IS NOT TO COUNCILWOMAN ALDARETE GAVITO SAID, IT'S NOT ABOUT BANNING FOLKS, NOT ABOUT PUTTING UNDUE REGULATIONS, BUT WE HAVE THEM HERE, WE HAVE TO PROTECT OUR UTILITY RESOURCES, OUR WATER, POWER, I THINK THERE'S A REALLY GOOD BALANCED WAY TO ACHIEVE THAT WITH BRINGING THESE FOLKS TO THE TABLE. 
          SO THANK YOU VERY MUCH. >> MAYOR JONES: THANK YOU. 
          WE'VE BEEN GOING FOR A THE TIME IS NOW 5:42 AND WE ARE BACK FROM RECESS. COUNCILWOMAN MEZA GONZALEZ, GO AHEAD. 
          >> GONZALEZ: THANK YOU, MAYOR. THANK YOU, EVERYBODY, FOR PRESENTATIONS, CITY, SAWS AND CPS. I THINK SAN ANTONIO HAS AN OPPORTUNITY TO BENEFIT FROM TECHNOLOGICAL GROWTH AND NEW INVESTMENT, BUT AT THE SAME TIME CAREFUL POLICY OVERSIGHT IS NEEDED TO ENSURE THAT RESIDENTIAL RATEPAYERS ARE PROTECTED, RELIABILITY REMAINS STRONG AND INFRASTRUCTURE INVESTMENTS ARE FINANCIALLY SOUND. 
          SO MAINTAINING THIS BALANCE WILL BE IMPORTANT TOO, I'VE HEARD FROM MY COLLEAGUES AND MYSELF AS WE EVALUATE POLICIES RELATED TO THIS LARGE ELECTRIC LOAD GREET. JUST A FEW QUICK QUESTIONS, ON SLIDE 8, I BELIEVE THIS IS CPS, WHAT CONTRACTUAL PROTECTIONS EXIST, IS IT SLIDE 8? LET ME SEE. YES. THERE IT IS. 
          THANK YOU. THE CUSTOMER PROTECTIONS, ARE THERE ANY PROTECTIONS THAT EXIST NOW IF LARGE -- YOU MAY HAVE MENTIONED THIS, BUT IF LARGE LOAD CONSUMERS REDUCE OPERATIONS OR CLOSE AFTER INVESTMENTS HAVE BEEN MADE, OR IS THAT -- IS THERE -- ARE THERE PROTECTIONS WITHIN 
          CPS, OR ARE THOSE ALL WITHIN SB 6 OR BOTH? >> THANK YOU PORE THE QUESTION. THEY'RE WITH CPS ENERGY RIGHT NOW  AND HAVE BEEN IN HOW WE'VE APPROACHED LARGE LOAD ADDITIONS FOR YEARYEAR. 
          AND THERE ARE SOME CONTEMPLATED IN SENATE BILL 6, THAT WORK IS UNDER DEVELOPMENT RIGHT NOW. BUT AS I THINK I HAD MENTIONED -- I'M GOING TO MOVE SLIDES. CAN I DRIVE FOR A MOMENT? OKAY. THIS WAS A SLIDE THAT, I THINK, MAY ANSWER SOME OF THE QUESTIONS THAT YOU'RE RAISING. 
          SO WHEN WE HAVE A LARGE CUSTOMER COME TO OUR SERVICE TERRITORY, WE DO REQUIRE PRECONSTRUCTION SURETY BONDS, AND SO, AGAIN, THESE LARGE LOADS WILL REQUIRE SPECIALIZED EQUIPMENT, AND OFTENTIMES WE ARE NEEDING TO ORDER MILLIONS OF DOLLARS OF EQUIPMENT, SOMETIMES YEARS IN ADVANCE OF THEIR ENERGIZATION DATE, SO WE HAVE THEM RAISE EFFECTIVELY COLLATERAL OR BONDING, SUCH THAT IF THE PROJECT DOESN'T MOVE FORWARD, WE CAN BE COMPENSATED BACK AND PROTECT OUR CUSTOMERS. I TOUCHED ON STUDY FEES A COUPLE OF TIMES. THE CONTRIBUTIONS IN AID OF CONSTRUCTION IS ANOTHER PIECE, BUT TO YOUR POINT AROUND HAVING REDUCED OUTPUT OR CLOSURE, THAT'S WHERE WE DO HAVE THE 10-YEAR PERFORMANCE PERIOD WITH THE CLAWBACKS, SO, FOR EXAMPLE, IF A CUSTOMER COMES IN AND SAYS, I'M GOING TO RAMP OVER THIS PERIOD OF TIME TO THIS LEVEL, AND WE'VE, YOU KNOW, CONSTRUCTED AND BUILT INTO SUPPORT THAT, AND THEY DON'T ACHIEVE THAT, OR THEY CLOSE, WE HAVE THE CLAWBACKS TO, AGAIN, PROTECT OUR 
          CUSTOMERS FROM THAT INVESTMENT. >> GONZALEZ: OKAY. 
          THANK YOU SO MUCH. AND THEN IT WAS ALSO NOTED ON THE TEMPORARY 
          [03:30:04]
ON-SITE GENERATION, WHAT TYPE OF GENERATORS ARE USED CURRENTLY, OR CAN BE 
          USED? >> THERE ARE -- CURRENT CUSTOMERS HAVE A VARIETY OF DIFFERENT BACKUP GENERATION RESOURCES. THERE ARE GENERATORS THAT ARE DIESEL GENERATORS. NATURAL GAS IS ANOTHER TYPE OF GENERATION. 
          WE ARE STARTING TO SEE CUSTOMERS BRING NEW AND ADVANCED TECHNOLOGIES, SUCH AS I MENTIONED FUEL CELLS, AND SO THERE ARE A VARIETY OF TECHNOLOGIES THAT ARE BEING UTILIZED AND ARE PLANNED TO BE UTILIZED. 
          THE MOST IMPORTANT THINGS ARE THE CHARACTERISTICS OF THE GENERATOR, BASED ON THE APPLICATION THEY NEED, HOW LONG THEY NEED TO RIDE-THROUGH, AND THAT'S WHERE YOU WILL SEE DIFFERENT TYPES OF GENERATORS BEING 
          PREFERRED OVER OTHER TECHNOLOGIES. >> GONZALEZ: AND HOW LONG 
          ARE THE TEMPORARY GENERATION ALLOWED? >> IT DEPENDS ON THE TYPE. FOR EXAMPLE, DIESEL GENERATORS TYPICALLY -- ALL OF THIS -- ALL OF THESE RESOURCES HAVE TO GO -- 
          AUDIO] -- >> GONZALEZ: STANDARDS? >> YES, MA'AM. 
          SO WHEN CUSTOMERS ARE BRINGING THEIR OWN RESOURCES, THEY WILL HAVE TO FILE FOR ENVIRONMENTAL PERMITTING THROUGH TCEQ AND POSSIBLY EPA JUST LIKE, YOU KNOW, OTHER ENTITIES. AND SO FOR DIESEL, FOR EXAMPLE, THERE ARE STRICT HOUR LIMITATIONS ON HOW MUCH THOSE RESOURCES CAN RUN, AND THAT WILL BE EXPLICITLY LAID OUT IN THEIR PERMITS GONZALES TBONS OKAY. PERMITS. I WAS GOING TO ASK CITY STAFF IF WE CAN GET A SUMMARY MAYBE OF SB6 SENT TO US. 
          I KNOW IT'S ONGOING, BUT THAT WOULD BE HELPFUL. AND THEN RELATED TO SAWS, I REALLY JUST WANT TO ECHO COUNCILMAN MUNGIA'S POINT -- AUDIO] -- NETWORK, I THINK IT'S JUST A GIVEN IN HOW WE'RE GROWING AS A CITY, SO WOULD APPRECIATE ANY EFFORT ON THAT PART. AND, YOU KNOW, THIS HAPHAPPENS AND OTHER COUNCILMEMBERS HAVE SAID THIS, THAT IT'S COMING UP IN REGULAR HOA MEETINGS, WE'RE TALKING ABOUT STREET REPAVING AND THEN A COUPLE OF QUESTIONS COME UP ABOUT DATA CENTERS, AND SO I DIDN'T KNOW IF -- I WANTED TO ASK IF CPS OR SAWS, BUT ELAINA'S PRESENTATION, IF THERE IS A WAY TO SIMPLIFY THAT FOR GENERAL CONSUMPTION AND HAVE IT ON YOUR WEBSITE SO WE CAN -- IF IT'S NOT THERE ALREADY, BUT IF WE CAN JUST SEND RESIDENTS TO THAT PAGE TO LEARN MORE ABOUT WHAT'S HAPPENING WITH THESE LARGE LOAD USERS AND DATA CENTERS SPECIFICALLY, I THINK 
          THAT WOULD BE HELPFUL. >> YES, MA'AM. WE DO HAVE A LARGE LOAD -- PART OF OUR WEBSITE EXTERNALLY, AND WE CERTAINLY CAN SIMPLIFY, DEENGINEER THESE SLIDES AND PUT THIS CONTENT OUT ON THAT WEB 
          PAGE IF THAT WOULD WORK. >> GONZALEZ: YES, THAT WOULD BE GREAT. 
          THANK YOU SO MUCH. I THINK THAT'S IT. THANK YOU. 
          >> MAYOR JONES: I KNOW THAT RESOURCE IS VERY HELPFUL. 
          I THINK SOMETIMES REGULAR FOLK DON'T MAKE THE CONNECTION BETWEEN LARGE LOAD AND DATA CENTERS, RIGHT, SO JUST MAKING THAT, I THINK, TO THE COUNCILMAN'S POINT WOULD BE VERY HELPFUL. THANK YOU. 
          COUNCILWOMAN CASTILLO? >> CASTILLO: THANK YOU, MAYOR. 
          THANK YOU TO EVERYONE FOR THE PRESENTATION. WANTED TO COMMEND AND THANK COUNCILMEMBER GALVAN FOR HIS INITIATIVE WITH THIS COUNCIL CONSIDERATION REQUEST, SIMILAR TO MY COLLEAGUES, THIS IS SOMETHING THAT I AM ALSO RECEIVING MORE QUESTIONS OF, WHAT DOES IT LOOK LIKE IN TERMS OF REGULATION AND HOW CAN WE ENSURE THAT DATA CENTERS ARE GOOD NEIGHBORS, AS THEY COME ONLINE IN OUR COMMUNITY. SO IN TERMS OF NEXT STEPS, I'M SUPPORTIVE OF WHAT AMIN LAID OUT IN PARTNERING WITH ALL STAKEHOLDERS TO DETERMINE BEST PRACTICES AND DEVELOP AND DRAFT UDC AMENDMENTS. I'M ALSO SUPPORTIVE IN SOME OF MY COLLEAGUES IN BEGINNING THAT CONVERSATION SOONER THAN LATER. 
          I KNOW THERE'S A NUMBER OF UDC AMENDMENTS THROUGH PCDC THAT BEEVE TALKED ABOUT AM MIPPEDING, SO CONVENING COMMUNITY NOW RATHER THAN LATER WOULD HELP US MAKE SURE WE HAVE A ROBUST UDC AMENDMENT PLAN. 
          GOING ONTO THE CPS ENERGY COMPONENT -- OR MORE GENERALLY, RATHER, IN TERMS OF THE OVERALL ECONOMIC BENEFIT THAT DATA CENTERS CAN HAVE IN COMMUNITY, I UNDERSTAND THAT THE CITY WOULD RECEIVE ADDITIONAL CITY PAYMENT, BUT I'M CURIOUS IN TERMS OF OVERALL TAX INCENTIVES AND/OR ABATEMENTS THAT MANY OF THESE PROJECTS RECEIVE, HOW MUCH REVENUE IS LOST, RIGHT? I'M THINKING IN TERMS OF A COUPLE OF THE DATA CENTERS THAT THE CITY HAS INCENTIVIZED, CAN SOMEONE WALK ME THROUGH TYPICALLY WHAT THOSE INCENTIVES LOOK LIKE. I'M THINKING MORE MICROSOFT, WHAT TYPE OF ABATEMENTS THAT THEY RECEIVED WITH THEIR DATA 
          CENTER? >> YES, MA'AM. WE ONLY HAVE ONE ACTIVE INCENTIVE AGREEMENT WITH A DATA CENTER. WE CAN DEFINITELY GET YOU MORE OF THOSE DETAILS. IT'S ACTUALLY A PARTIAL REBATE. 
          SOME OF THE FUNDING IS RETURNED BACK TO THEM, BUT SOME OF IT IS ACTUALLY KEPT INTERNALLY FOR ECONOMIC DEVELOPMENT FUNCTIONS. 
          I BELIEVE IT WAS IN 2013, SO IT'S GOT MAYBE A COUPLE YEARS LEFT, BUT WE CAN DEFINITELY GET YOU MORE OF THOSE DETAILS. SINCE THEN, WE HAVE NOT 
          [03:35:03]
APPROVED ANY -- COUNCIL HAS NOT APPROVED ANYMORE. 
          >> CASTILLO: AND IS THAT PRIMARILY A PROPERTY TAX ABATEMENT OR CAN YOU -- 
          >> IT WAS AD VALOREM OF PROPERTY, PERSONAL AND REAL, YES, MA'AM. 
          >> CASTILLO: OKAY. I APPRECIATE THAT. >> AND, AGAIN, IT WAS A REBATE. IT WASN'T AN ACTUAL ABATEMENT OF ALL 
          PROPERTIES. >> CASTILLO: AND THEN I'M LOOKING AT SLIDE 6 OF THE CPS PRESENTATION WITH THE NEW AGREEMENT FEASIBILITY PHASES, HOW MANY OF THOSE, IF ANY, HAVE RECEIVED SOME TYPE OF ECONOMIC DEVELOPMENT 
          INCENTIVE? >> FOR DATA CENTERS TO MY KNOWLEDGE, THERE HAVE 
          BEEN NONE. >> CASTILLO: OKAY. AND NO DATA CENTERS THAT 
          HAVE RECEIVED AN E16 AGREEMENT? >> WE HAVE VARIOUS HEIGHT PEOPLE. AGAIN, TO MY KNOWLEDGE, NONE. 
          >> CASTILLO: I APPRECIATE THAT. AND THEN IN TERMS OF THE COMMERCIAL RATE, DO MOST WHAT DO THEY TYPICALLY FALL UNDER. 
          IS IT A SUPER LARGE POWER SERVICE OR HIGH LOAD FACTOR? I UNDERSTAND Y'ALL ARE GOING TO EXPLORE ANOTHER MODEL, BUT TYPICALLY, 
          WHAT DO THESE FALL UNDER? >> AGAIN, WE HAVE DIFFERENT SIZES, BUT GENERALLY FOR THE LARGE LOAD CUSTOMERS, MAJORITY OF THEM ARE GOING TO FALL UNDER THAT SLP, THAT SUPER RATE OF SLP CLASS. 
          >> CASTILLO: I APPRECIATE THAT. I JUST WANTED TO HIGHLIGHT, I THINK BOTH CPS FOR Y'ALL'S INITIATIVE AND EXPLORING WHAT A DIFFERENT MODEL CAN LOOK LIKE IN TERMS OF RATE, BUT ALSO SAWS FOR WHAT Y'ALL HAVE LAID OUT IN TERMS OF NEXT STEPS ON HOW TO MOVE FORWARD TOGETHER. THOSE ARE ALL MY COMMENTS AND QUESTIONS. 
          THANK YOU, MAYOR. COUNCILWOMAN SPEARS? >> SPEARS: THANK YOU, MAYOR. I'M GOING TO SAY A LOT OF WHAT MY COLLEAGUES HAVE SAID, I GU GUESS. I REALLY APPRECIATED THE TIME AT THE ROUND TABLE WITH COUNCILMAN GALVAN -- DID I SAY GALVAN OR VIAGRAN EARLIER? OKAY. I LOVE ALL Y'ALL, BUT THANK YOU SO MUCH FOR THE TIME WE GOT TO TALK ABOUT THIS. I JUST REALLY -- THIS IS COMING. I SEE IMMENSE OPPORTUNITY HERE FOR SAN ANTONIO. 
          WE'VE BEEN TALKING ABOUT WHAT IS SAN ANTONIO GOING TO LOOK LIKE IN THE FUTURE. THIS IS IT, Y'ALL. THIS IS VERY EXCITING TO ME. AND WE HAVE A CHANCE TO PARTNER WITH THE BEST OF THE BEST IN THIS INDUSTRY, HELP BE THE LEADER IN THE REGION ACROSS THE NATION ON HOW TO MAKE A GOOD PARTNERSHIP AND TO GET GOOD INVESTMENTS IN OUR COMMUNITY WITH WILLING PARTNERS, BECAUSE THE TRUTH IS, OUR OBSTACLES ARE THEIR OBSTACLES. THEY'RE WORRIED ABOUT WATER, THE SAME WAY WE ARE. THEIR TECHNOLOGY CHANGES EVERY SINGLE DAY. IN WEST TEXAS, WE CALLED EVAPTIVE COOLING SWAMP COOLERS, AND I'VE LIVED IN A HOUSE WITH SWAMP COOLING, AND I CAN TELL YOU THAT THERE'S A BETTER WAY TO DO THAT. AND WE KNOW THERE'S NEW THINGS LIKE IMMERSION TECHNOLOGY'S HERE, NUCLEAR IS COMING EXTREMELY FAST. WE HAVE THE STARGATE DOLLARS THAT WE CAN GO AFTER. THAT'S -- THAT'S ALL VERY EXCITING THINGS TO ME BECAUSE ALSO BEING MILITARY CITY USA, WE CAN BE AWARE OF THE UNIQUE RADIOISOTOPES THAT COME FROM NUCLEAR ENERGY, AND THAT IS IMPERATIVE -- THAT WOULD BE HUGE FOR SAN ANTONIO TO LEAD IN OUR MEDICAL INDUSTRY IN THE MILITARY MEDICINE INDUSTRY HERE. SO I WANT TO DO THE COMPREHENSIVE OVERHAUL OF THE UDC, I THINK THAT ONLY MAKES SENSE, AND THE SOONER THE BETTER, BUT, AGAIN, I JUST -- I GET VERY EXCITED ABOUT IT BECAUSE IT REALLY IS. IT'S JUST STARTING TO TAKE SHAPE AT THE OPPORTUNITY THAT WE REALLY DO HAVE. AND SO I WOULD ASK THAT WHILE WE'RE LOOKING AT HOW WE PLAN THIS OUT, SINCE TECHNOLOGY IS CHANGING QUITE LITERALLY DAILY IN THIS SPACE, THAT WE BE MINDFUL OF THAT IN THE FOOTPRINT AND HOW WE CAN HELP WITH THAT. AND I'VE MENTIONED THAT TO SAWS AND CPS ALREADY, AND I KNOW THEY'RE PAYING ATTENTION TO IT, BUT IT'S ONLY GOING TO GET BETTER. AND WE WANT TO BE ABLE TO MEET THAT NEED AS IT IMPROVES. AND I'M NOT THE ONE THAT KNOWS ALL -- THE MOST ABOUT HOW THAT'S GOING TO LOOK, BUT IT'S JUST GOING TO IMPROVE. AND I THINK THAT THEY WILL MAKE GREAT PARTNERS AND ARE WILLING TO DO A LOT TO HELP OUR COMMUNITIES. 
          AND I WANT TO SAY, ALSO, I APPRECIATE COUNCILWOMAN ALDARETE GAVITO FOR BRINGING UP ABOUT THE EDWARDS AQUIFER RECHARGE ZONE. 
          CAN YOU TALK ABOUT WHAT THAT IMPACT WOULD BE, AGAIN, OR DID I MISS THE 
          ACTUAL IMPACT THERE? IS. >> YEAH, SO TO THE EXTENT THEY'RE LOCATING OVER THE EDWARDS AQUIFER, IT DEPENDS ON WHAT THE DISCHARGE WOULD BE. IF THEY DO HAVE A DISCHARGE INTO THERE, THAT'S WHEN WE WOULD HAVE TO MAKE SURE THAT IT'S EITHER GOING INTO THE SEWER SYSTEM OR THERE ARE CONTROLS IN PLACE THAT AREN'T ALLOWING IT TO SEEP INTO THE AQUIFER. THAT'S THE BIGGEST ISSUE. 
          THEN YOU GET INTO JUST GENERAL LAND ISSUES, TRAFFIC AND THOSE SORTS OF THINGS THAT ARE NORMAL. AGAIN, WE HAVE SPECIFIC RULES FOR DEVELOPMENT OVER THE RECHARGE, IMPERVIOUS COVER AND 
          [03:40:04]
THOSE SORTS OF THING, SO IT COULD BE KIND OF A SITE-SPECIFIC ISSUE, BUT THOSE ARE DEFINITELY THINGS YOU HAVE TO WATCH OUT FOR. 
          >> SPEARS: YEAH, AND TO YOUR POINT, THOUGH, AS WE SEE THESE CLOSED LOOP SYSTEMS COMING IN TO PLAY MORE, IT'S JUST BETTER AND BETTER FOR THE WATER SITUATION, BUT -- SO I'M HAPPY AND HOPEFUL IN HEARING EVERYONE SEE THIS AS MORE OF AN OPPORTUNITY THAN SUPER RISKY, BECAUSE IF IT'S NOT US, IT WILL BE SOMEBODY ELSE. AND I THINK THAT SAN ANTONIO, AGAIN, JUST UNIQUELY POSITIONED BECAUSE OF OUR UTILITIES, TO DO AMAZING THINGS IN THIS SPACE. SO THAT'S REALLY ALL I HAVE. 
          SO THANK YOU VERY MUCH. COUNCILMEMBER KAUR? >> KAUR: THANK YOU, MAYOR. THANK YOU ALL FOR THIS PRESENTATION. 
          WHEN I WAS A SCHOOL LEADER, WE USED TO CALCULATE THE SALARIES IN ROOMS FOR MEETINGS AND SAY, THIS MEETING IS WORTH X DOLLARS, JUST SO WE KNOW HOW MUCH MONEY AND TIME WE'RE SPENDING, AND I JUST WANT TO SAY THANK YOU ALL, BECAUSE I KNOW FROM ALL THREE ENTITIES FROM THE CITY, SAWS AND CPS, WE'VE SPENT A LOT OF MONEY IN THIS MEETING TODAY, AND THAT IT'S VALUABLE CONVERSATION. THAT WE KNOW THAT IT REQUIRES A LOT OF SUPPORT TO MAKE SURE THAT FOLKS ARE HERE TO ANSWER QUESTIONS, BUT I WANT TO THANK COUNCILMEMBER GALVAN FOR HIS FIRST CCR, GETTING RIGHT TO A B SESSION, WHICH IS INCREDIBLE. 
          THAT MEANS IT'S CLEARLY BRINGING UP AN IMPORTANT ISSUE. 
          GOING LAST, I HAVE TO FEEL LIKE I HAVE TO LOOSEN UP THE ENERGY IN THE ROOM A LITTLE BIT. BUT I LEARNED A LOT FROM THESE PRESENTATIONS. 
          SO KIND OF GOING OFF WHAT COUNCILMEN SAID, I THINK THIS WOULD BE HELPFUL FOR OUR COMMUNITY. I HAVE A COUPLE OF CLARIFYING QUESTIONS BASED ON SOME OF THE QUESTIONS THAT WERE ASKED THAT I'M NOT SURE IF I'M MISUNDERSTANDING. I'LL START WITH CPS, FROM THE LARGE LOAD, THE DEFINITION OF, LIKE, LARGE LOAD BEING DATA CENTERS. 
          MY UNDERSTANDING IS THAT THERE'S MORE THAN JUST DATA CENTERS IN LARGE 
          >> YES. YES, MA'AM. THERE ARE. 
          AND SO, YOU KNOW, AGAIN, WE TRY TO PROTECT OUR CUSTOMERS WITH THEIR COMPETITIVE, BUT WE HAVE LARGE GROCERS, WE HAVE LARGE, YOU KNOW, LARGE MANUFACTURING ENTITIES, WE HAVE NEW INDUSTRIES THAT ARE PLANNING TO EXPAND OR GROW IN OUR SERVICE TERRITORY, SO WHEN WE TALK ABOUT LARGE LOAD, WE THINK ABOUT IT JUST IN THEIR ENERGY CONSUMPTION. 
          BUT, YES, MA'AM, THERE ARE'S MORE THAN DACTS. >>DATA 
          CENTERS. >> KAUR: SOME MAY HAVE DIFFERENT WATER CHALLENGES BUT OTHERS MAY NOT. I THINK WHEN WE DO PROVIDE THAT CLARITY FOR COMMUNITY MEMBERS, WE IDENTIFY WHAT PERCENTAGE IS ACTUALLY DATA CENTERS FROM THE LARGE LOAD ENTITIES THAT YOU ALL 
          HAVE. >> YES. >> KAUR: AND THE SECOND QUESTION TO THAT, ON SLIDE 9, THE 11% OF COMMERCIAL, WHAT 
          PERCENTAGE OF THAT 11% IS LARGE LOAD? >> YES. 
          THAT'S A GOOD QUESTION. I DON'T HAVE THAT STAT RIGHT IN FRONT OF ME, BUT I CAN GET BACK TO YOU ON THAT. BUT AGAIN, THE LARGER CUSTOMERS ARE CARRYING THE LION'S SHARE OF THE REVENUE IN THAT CATEGORY, 
          BUT WE'LL ABSOLUTELY GET IT FOR YOU. >> KAUR: OKAY. 
          >> I KEEP TOUCHING THIS THING. THE TECH SUPPORT GUY IS 
          GOING TO PUNCH ME HERE IN A LITTLE BIT. >> TO GIVE YOU A SUBSET OF WHAT YOU'RE ASKING FOR -- COMMERCIAL CUSTOMERS ARE SMALL BUSINESS. OF THAT, 10% ARE LARGER THAN, YOU KNOW, OUR LARGEST SMALL BUSINESS, SO I WOULD IT'S A SUBSET OF 10%. IT'S IN THE SINGLE DIGITS AS A CUSTOMER COUNT, BUT IT WILL BE A HIGHER PERCENTAGE AS A PERCENTAGE OF LOAD. 
          >> KAUR: RIGHT. SO I'M THINKING THAT, LIKE, 1% OF OUR TOTAL CUSTOMER COUNT IS PRODUCING PROBABLY, LIKE, 40% OF OUR REVENUE? 
          >> THAT'S PROBABLY NOT TOO FAR OFF. MAYBE A COUPLE TWO, THREE 
          PERCENTAGE POINTS. >> KAUR: AND SO THAT'S AN INTERESTING -- WHEN I WAS AT THIS CONVERSATION EARLIER TODAY, I WAS ALSO SHARING I'D LIKE FOR OUR BUSINESSES TO STEP UP A LITTLE BIT MORE, AND WE'VE TALKED ABOUT THIS WITH THE LAST CONVERSATION AROUND HOW YOU GUYS ARE CHARGING DIFFERENT ENTITIES, AND MAYBE THAT WAS WITH SAWS, BUT SIMILARLY, WITH CPS, RIGHT, WE DO WANT FOLKS HELPING OUR MOST UNDERSERVED COMMUNITIES, AND THAT MEANS SOMETIMES HAVING THESE PEOPLE PAY THEIR WAY AND PAY MORE THAN THEIR WAY, AND I LOVED SEEING THAT CHART THAT SHOWED WHAT IT COST TO SERVE AND HOW FOLKS ARE HELPING US, BECAUSE THAT'S WHAT WE NEED TO CONTINUE TO DO. AND I THINK, INCREASE THAT EVEN MORE, WHERE POSSIBLE. THE SECOND QUESTION THAT I HAVE IS ON SLIDE -- THE FUNNEL SLIDE, SLIDE 5. SO IT WAS MENTIONED ABOUT TWO PROJECTEDS THAT ARE UNDERWAY FOR THE TWO PROJECTS THAT ARE GOING TO BE TAKING ON THE RECYCLED WATER ARE GOING TO BE BASICALLY USING UP ALL OF THE CAPACITY, ARE THOSE HIGHLIGHTED UNDER HERE -- I KNOW THAT WAS A SAWS QUESTION, I JUST 
          [03:45:01]
          DIDN'T KNOW IF THAT WAS CALCULATED IN THIS. >> SO MY UNDERSTANDING, AND I'LL MAKE SURE DONOVAN CORRECT ME IF I'M WRONG, THAT THE TWO CUSTOMERS WE TALKED ABOUT WERE TWO PERSPECTIVE CUSTOMERS THAT WERE USING EVAPORATIVE TECHNOLOGIES SO THEIR NUMBERS WERE VERY LARGE. 
          THEY AREN'T COMING. AND SO, YOU KNOW, AGAIN, I DON'T WANT TO OVER -- PLEASE CORRECT ME IF I'M WRONG, SO I DON'T BELIEVE THEY'RE IN THOSE NUMBERS. AND THEY'RE NOT -- THEY'RE NOT UTILIZING 
          THAT TECHNOLOGY. IS THAT FAIR? >> LIKELY ONE OF THEM ARE IN THESE NUMBERS. ONE OF THEM HAS COMPLETELY GONE AWAY. 
          THE OTHER ONE WAS A LARGE DEMAND AND HAS REDUCED THEIR LOAD, SO I WOULD SUSPECT -- AND THEY ARE A REAL CUSTOMER, I WOULD SUSPECT THAT ONE CUSTOMER IS WITHIN THIS. WE'LL VERIFY WHICH ONES, BUT -- 
          >> KAUR: OKAY. SO THESE CONTRACTED ARE ALL OF THE CONTRACTED ONES THAT WERE SHOWN ON THE MAP THAT SAWS SHOWED? 
          >> CORRECT. >> KAUR: OKAY. THAT'S -- OKAY. 
          SO WE'LL JUMP OVER TO THAT. SO A PART OF THIS TO ME WAS PUTTING THE PIECES TOGETHER, AND HOW DO WE OVERLAY THE INFORMATION SAWS WAS SHOWING US WITH THE INFORMATION THAT Y'ALL ARE SHOWING US SO WE CAN GET A MORE COMPREHENSIVE PICTURE. AND I FEEL LIKE THIS WAS SO -- THAT CONVERSATION WAS SO POINTED TODAY, BECAUSE WE DO THINK ABOUT THEM IN VERY SEPARATE ENTITIES AND Y'ALL HAVE YOUR OWN PROCESSES, BUT EVEN -- WE CAN MOVE ON TO SAWS, THE MAP THAT I REALLY -- I REALLY LOVED THE MAP THAT Y'ALL SHOWED WITH THE DOTS THAT WERE -- WHERE ALL THE CENTERS WERE LOCATED ON SLIDE 7. SO THIS WAS -- I MEAN, THIS SHOWED WHY COUNCILMEMBER GALVAN WAS LIKE, THIS IS THE FIRST THING I'M GOING TO TACKLE, IT WAS LIKE INFRASTRUCTURE FOR ME, BUT I HAD NO IDEA THAT I HAVE ONE RIGHT THERE ON I-10.  I'M LIKE WHICH DATA CENTER IS THAT? AND SO ANYWAYS, THIS BEING SAID, THIS SHOWS US WHERE THE RECYCLED WATER'S COMING FROM. I'D LIKE TO OVERLAY THIS WITH HOW MUCH POWER THEY'RE USING AND THE IMPACT ON THAT SO WE CAN SEE BOTH SIDE BY SIDE WITH LOCATIONS AND I DON'T KNOW IF THERE'S A WAY TO SHOW HOW MUCH POWER ONE OF THOSE DATA CENTERS IS USING AND JUST 
          LIKE THE IMPACT OF WHAT THAT LOOKS LIKE. >> KAUR: I DIDN'T EVEN KNOW THESE WERE CALLED PURPLE LINES, I LOVE THAT, PURPLE RECYCLABLE 
          LINES. >> THEY'RE LITERALLY PURPLE. 
          >> KAUR: I WOULD LOVE TO SEE ONE. I HOPE THIS SHOWS UP IN 
          THE RAIN THE DRAIN TOUR. I KEEP CALLING IT WRONG. >> IT WILL. 
          YOU'LL GO TO THE ST STEVEN MKLAUS PLANT. >> I WAS HAVING A CONVERSATION TODAY HOW THEY WANT TO TAP INTO THIS. 
          I KNOW WE TALKED A LOT ABOUT THIS, BUT WHAT'S THE BIGGEST LIMITATION TO 
          GROWTH FOR OUR RECYCLED WATER? >> I THINK IT'S REALLY THE RELIABILITY IN CONNECTING THE TWO AT THE BOTTOM. 
          AGAIN, THERE'S SOME INFRASTRUCTURE THINGS. I THINK THAT'S THE BIGGEST THING BECAUSE -- I'LL GO OFF ON A TAN JET HERE. 
          THE SYSTEM IS 25 YEARS OLD. THE PAST 20 YEARS WE'VE BEEN HAVING TROUBLES GETTING PEOPLE ONTO THE SYSTEM. 
          NOW WE'RE HAVING AN ENTIRELY DIFFERENT CONVERSATION WHICH IS TOO MUCH CAPACITY OR TOO MUCH DEMAND ON THE SYSTEM. THAT'S A GREAT PROBLEM TO HAVE, BUT I THINK IT'S CERTAINLY DOABLE AND PARTICULARLY WITH THE LIBRARY OR A SMALLER FACILITY, THEN IT'S JUST AN ISSUE OF DISTANCE FROM THE PIPE, LOUNGE OF A -- HOW BIG OF A PIPE WILL THEY NEED, WHERE IS IT GOING TO. SO I DON'T THINK THAT'S A PROBLEM. 
          >> KAUR: AND I KNOW THIS IS KIND OF A TANGENT ON THE DATA CENTER CONVERSATION AND I'M GLAD THIS CAME UP AS A PART OF THIS, BUT I'M JUST SO CURIOUS HOW WE CAN GROW THIS EVEN MORE BECAUSE IT SEEMS TO BE A GREAT SOLUTION. I KNOW LIKE HEMISFAIR PARK IS USING ALL OF THEIR WATER ON RECYCLED WATER, I FEEL LIKE WE'VE GOT TO FIGURE OUT A WAY TO GROW THIS, AND SO THAT'S WHY I WAS JUST THINKING -- I'M SURE THAT'S ONE OF YOUR STRATEGIC BILL LARS THAT YOU ALL -- PILLARS THAT 
          YOU THINK ABOUT ALL THE TIME. >> ABSOLUTELY. 
          YOU'RE SINGING OUR SONG AND WE APPRECIATE IT. >> KAUR: THE ONE OTHER QUESTION THAT I HAD WAS ON THE RECYCLED WATER COST RECOVERY ON SLIDE 12, WHAT IS THAT -- WHY IS THERE THAT 5% DIFFERENCE FOR NOT BEING ABLE TO COVER COST OF SERVICE? LIKE WHAT'S THE -- 
          >> THIS HAS BEEN A PROGRESSION OVER THE PAST SEVERAL YEARS. 
          I THINK IT WAS -- IT WAS ALMOST, I DON'T KNOW, 20 OR 30% OF COST RECOVERY, AND SO I THINK THAT'S JUST -- I DON'T KNOW, I'LL HAVE TO GET DOUG UP TO TALK TO THE VERY SPECIFIC NUMBERS. WE DIDN'T SAY WHAT'S 95% AND SET THE RATE THERE. I THINK THAT'S JUST -- WE RAISED THE RATE, WE HAD A RATE PLAN THROUGH YOU GUYS TO RAISE IT BY 10% A YEAR, AND SO OVER THAT TIME PERIOD, THAT'S WHAT IT HAS BECOME. SO RAISING THOSE RATES OVER A FIVE-YEAR PERIOD HAS GOTTEN TO A 95% IN THIS YEAR. 
          >> KAUR: SO JALEN EARLIER TODAY MENTIONED THE FOUR-YEAR PLAN, I'M SURE IT WOULD BE BUT  I'D LIKE FOR IT TO BE SPECIFICALLY CALLED OUT IN TERMS OF WHAT GROWTH COULD LOOK LIKE IN THIS AREA AND HOW YOU COULD POTENTIALLY GET TO 100% COST RECOVERY IN THAT GROWTH AS WELL. I'M SURE THAT'S PROBABLY ALREADY ON YOUR MIND BUT I THINK I'D BE VERY INTERESTED IN SEEING 
          THAT. >> I BELIEVE NEXT YEAR IS THE NEXT ONE WHERE WE 
          [03:50:01]
HAVE A POTENTIAL OF A 10% RATE -- OR UP TO A 10% RATE INCREASE, AND I 
          THINK THAT'S WHERE IT WOULD FALL. >> KAUR: OKAY. 
          I APPRECIATE THE POLICY CONSIDERATIONS THAT Y'ALL BROUGHT FORWARD. 
          AND WE MENTIONED THIS EARLIER, AND DR. ROMIRO ACTUALLY SAID THIS IS NOT ABOUT A POWER USE ISSUE, BUT IT'S ABOUT TRANSMISSION. 
          AND THAT WAS SOMETHING I DIDN'T FULLY UNDERSTAND. SO THERE'S A LOT OF COMPONENTS THAT I THINK ARE STILL VERY COMPLICATED AND TECHNICAL ABOUT DATA CENTERS AND IT'S BECOME A VERY NATIONAL ISSUE THAT'S GETTING A LOT OF LIMELIGHT AND ATTENTION. I AGREE WITH WHAT ALL MY COLLEAGUES SAID ABOUT LEADING THE WAY, BUT I THINK WE HAVE TO FIGURE OUT HOW TO DO IT AND MAKING SURE WE'RE NOT CREATING -- I DON'T KNOW WHAT BENEFIT WE WOULD GET FROM A WHOLE TOWN OF DATA CENTERS, SO WE'D HAVE TO THINK VERY STRATEGICALLY ABOUT HOW WE GROW THAT AND MAKING SURE THAT WE'RE NOT PUTTING OUR WATER SYSTEM THAT'S ALREADY VERY TIGHTENED AT RISK. SO I'LL JUST -- THAT'S IT. 
          I'LL END WITH THE DSD -- WE HAVE A LIST OF UDC AMENDMENTS THAT ARE 
          COMING, SO GOOD LUCK. COUNCILMAN GALVAN? >> GALVAN: THANK YOU, MAYOR. JUST REALLY QUICK, I WANTED TO SAY THANK YOU TO ALL MY COLLEAGUES FOR THE SUPPORT IN THE CONVERSATION AS WELL AS THEIR FEEDBACK ON THIS AS WELL. I THINK -- YOU KNOW, I LISTED OUT A WHOLE BUNCH OF THINGS THAT I WANTED TO L LOOK AT AND I'M STILL VERY CONFIDENT IN THE COMPREHENSIVE VIEW, WHETHER IT'S RELATED TO ENERGY -- UTILITIES IN GENERAL, TALKING ABOUT TREE CANOPY, CONSTRUCTION CONCERNS, LIGHTING CONCERNS, ALL THOSE THINGS THAT ARE STILL PART OF THIS CONVERSATION, BUT I ALSO WANTED TO MAKE CLEAR, TOO, I KNOW ABOUT THE DSD PRESENTATION, THERE WAS, OF COURSE, A FOCUS ON DSD, DOING THIS KIND OF WORK AND FOCUSING SOLELY WITHIN UDC AND ZONING, AND THAT'S WHAT MY CCR CALLED FOR. I DO THINK, OF COURSE, THIS CONVERSATION, IF IT'S WORTHWHILE, TO BRING IN SAWS, CPS, PARKS FOR TREE MITIGATION FUND, TO BRING IN FIRE, WHOEVER IT MAY BE, I DON'T KNOW IF THEY NEED DIRECTION FROM ME, BUT I FEEL COMFORTABLE SAYING WHETHER IT'S A TASK FOR OR STAKEHOLDER GROUP TO TAKE PLACE. 
          I THINK IT'S WORTHWHILE TO BE TRANSPARENT WITH OUR COMMUNITY TO LET THEM KNOW WE'RE LOOKING AT ALL THESE FRONTS, A ROBUST AND COMPREHENSIVE LOOK ON IT AND MAKING IT THE SAN ANTONIO SOLUTION WE DESERVE AND ADDRESSING SOME OF THE KEY CONCERNS ALL ACROSS THE BOARD. I KNOW SOME FOLKS MENTIONED COMMUNITY BENEFITS AND DIFFERENT IDEAS THERE. 
          THERE'S DIFFERENT STUDIES HAVE THOAN THAT THOSE ARE REALLY HELPFUL AND TANGIBLE FOR OUR RESIDENTS. THERE'S SOME THAT ARE ALREADY -- MICROSOFT'S AN INCREDIBLE PARTNER WHO DOES INCREDIBLE WORK WITH TERMS OF OUR ISD IN THE AREA, THERE'S ALSO SUPPORT WITH WORKING WITH THE COMMUNITY DIRECTLY, NOT BEING THE KIND OF ISOLATED DATA CENTERS THAT WE FIRST KNEW WHEN THEY FIRST CAME AROUND. I WANTED TO SHOUT OUT A COUPLE OF THOSE EFFORTS GOING ON, AND I THINK WHATEVER WAYS WE CAN CONTINUE TO BUILD THOSE PARTNERSHIPS WITH OUR LOCAL NEIGHBORHOODS, SCHOOLS, INFRASTRUCTURE ITSELF, WHATEVER WAY IS POSSIBLE, AND FEEDABLE WORTH EXPLORING AND COMMUNICATING, NOT ONLY WITH EACH OTHER, BUT WITH THE LARGER PUBLIC AS WELL. I THINK THE -- I AGREE TO COUNCILMEMBER KAUR'S POINT, WITH UDC, WE'LL BE ASKING FOR A LOT. 
          I THINK ANYTHING WE CAN DO WITH PRELIMINARY-WISE IS HELPFUL, TO GET THE STAKEHOLDERS TOGETHER AS COUNCILMEMBER MUNGIA POINTED OUT TO HAVE THE CONVERSATION WHEN IT COMES TO A LARGER CONVERSATION ON UDC AFTER ALL. ONE LAST THING I WANTED TO NOTE. 
          I KNOW WE HAD A LOT OF CONVERSATION ABOUT THIS A VARIETY OF PEOPLE WITHIN MY OFFICE -- I WANT TO RECOGNIZE THAT THOSE ARE VALUABLE AND THOSE ARE REAL, BUT I ALSO WANT TO MAKE SURE THAT WE'RE BEING CLEAR EYED AND FOCUSED ON SOME OF THE CONCERNS THAT OUR RESIDENTS ARE ASKING ABOUT, ESPECIALLY MY RESIDENTS ARE ASKING ABOUT, AND UNDERSTAND THERE HAS TO BE THIS BALANCE, RIGHT? WE DO THIS CONVERSATION ALL THE TIME WHEN WE TALK ABOUT OTHER INDUSTRIES, WHETHER IT'S 18-WHEELER PARKING, WHETHER IT'S HOUSING EVERY OTHER TWO WEEKS, AND WE TALK ABOUT ZONING, SO I THINK IT'S WORTHWHILE TO UNDERSTAND AND NOT BE FEARFUL ABOUT WHAT WE'RE ASKING FOR, WHAT THEY'RE ASKING FOR, BRINGING THAT TO THE FOREFRONT AND SEEING WHAT WAY WE CAN GET TO A GOOD COMPROMISE THERE IN SOME FORM. 
          AND I ALSO THINK ABOUT ALL THE POSSIBILITIES -- DAPPEDZ LAISH WE COULD HAVE HOUSING UNITS BEING DEVELOPED IN OUR CITY, BUT I'LL LEAVE THAT THERE. AGAIN, THANK YOU TO MY COLLEAGUES FOR THIS CONVERSATION TODAY. THANK YOU TO THE MAYOR FOR BRINGING IT TO B SESSION AND THOSE ARE ALL MY THOUGHTS AT THE MOMENT. 
          THANKS. COUNCILWOMAN CASTILLO? >> CASTILLO: THANK YOU, MAYOR. IN SHORT, I WANTED TO MENTION THAT I'M SUPPORTIVE OF COUNCILMEMBER GALVAN'S SUGGESTION THAT WE EXPLORE I-1 FOR POTENTIAL ZONING AND OF COURSE LANDSCAPE BUFFERS AND IMPERVIOUS COVER AS WELL. AND LAST POINT, IN TERMS OF THE APPETITE THAT I'M HEARING TO SUPPORT DATA CENTERS IN THE CITY OF SAN ANTONIO AND GIVEN SOME OF THE CONSTRAINTS WITH SAWS, FOR EXAMPLE, CAN SAWS HELP US UNDERSTAND HOW A POTENTIAL RATE ADJUSTMENT 
          [03:55:04]
CAN HELP SUPPORT MAINTENANCE WITH THE RECYCLED WATER PIPELINE? 
          >> YES. SO I THINK -- AND I BELIEVE SOME OF THE PROJECTS THAT ARE IN THE RECYCLED PLAN, WHICH IS TO CONNECT THAT BOTTOM PIECE THAT I TALKED ABOUT, THAT'S PROBABLY THE MOST IMPORTANT. 
          I BELIEVE THAT'S SCHEDULED FOR 2030 AT THIS POINT. 
          AND SO THE RATES ARE IN THE RECYCLED RATES, THEY'RE NOT IN THE OVERALL RATES THAT WE'RE TALKING ABOUT NOW, SO IT'S A DIFFERENT RATE PROCESS. AND I DON'T BELIEVE THAT'S A PART OF WHAT YOU'LL BE CONSIDERING IN OUR ONGOING PROCESS. DID THAT -- TO THAT END, I BELIEVE NEXT YEAR WE HAVE ANOTHER POTENTIAL RATE INCREASE IN THE RECYCLED SYSTEM UP TO 10%. THAT WILL HELP. 
          BUT AS WE'RE ALSO AT THE END OF THIS YEAR DEVELOPING A RECYCLED WATER MASTER PLAN, WHAT THAT WILL DO IS FIGURE OUT WHICH -- ALL OF THE INFRASTRUCTURE NEEDS ARE TO BOTH INCREASE THE RELIABILITY REDUNDANCY, BUT ALSO TO EXPAND IT, AND SO THAT WILL KICK OFF A NUMBER OF INFRASTRUCTURE PROJECTS, THOSE WOULD GO INTO THE PROCESS OF WHAT PROJECTS ARE NEEDED. SO, AGAIN, WE KNOW SOME OF THEM RIGHT NOW, AND IT'S THAT BOTTOM LOOP, WHICH IS PROBABLY THE MOST IMPORTANT ONE IN 
          THERE, AND THAT IS IN THE PLAN FOR 2030. >> CASTILLO: THANK YOU. 
          I APPRECIATE THAT, DONOVAN. THANK YOU, MAYOR. 
          >> I JUST HAD A COMMENT. COUNCIL APPROVED A FIVE-YEAR RATE INCREASE FOR RECYCLED WATER. WE'RE IN YEAR 3 OF THAT -- YEAR 4 OF THAT. 
          SO THAT ALL HELPED WITH THOSE PRIOR 83 YEARS. PRIOR YEARS. 
          IT WAS A FIVE-YEAR RATE PLAN ON CYCLED WATER. >> MAYOR JONES: IF YOU HAVEN'T ALREADY SIGNED IN AND YOU'D LIKE TO SPEAK ON THE SECOND ROUND AND 
          ALAMODOME GAVITO. >> KAUR: JUST REAL QUICK I WANTED TO GIVE MY SUPPORT FOR THE COMMUNITY CONVERSATION. 
          THANKS. >> GAVITO: I'M SO GLAD THAT COUNCILMAN GALVAN MENTIONED THIS, I CAN'T BELIEVE I FORGOT IT, IT WAS ONE OF THE THINGS I HAD BEEN HARPING ON, THESE DATA CENTERS THAT DO COME INTO OUR COMMUNITY TO ACT LIKE COMMUNITY PARTNERS AS WELL. 
          AND IF THEY ARE USING OUR RESOURCES, ENERGY AND WATER, WE NEED THEM TO -- WE NEED THEM TO BE GOOD CORPORATE PLAYERS, RIGHT. 
          Q. SAN ANTONIO DOESN'T HAVE A MAJOR CORPORATE BASE, AND SO THEY CAN DO THAT THROUGH THEIR PHALANTHROPIC GIVING. WORKING WITH SCHOOLS. 
          I KNOW THAT SOME OF THEM ARE ALREADY DOING THAT, BUT WE -- THERE'S WAYS THAT WE CAN SEE AND FEEL THEIR PRESENCE HERE BY BEING GOOD STEWARDS IN OUR COMMUNITY. THAT'S ALL. THANK YOU. 
          >> MAYOR JONES: HAS EVERYONE THAT WOULD LIKE TO SPEAK ON THIS ISSUE SPOKEN? OKAY. GREAT. 
          A COUPLE OF CLARIFYING QUESTIONS. I'M GLAD TO SEE THERE'S SO MUCH SUPPORT FOR THE RECYCLED WATER INFRASTRUCTURE. 
          DONOVAN, CAN YOU CLARIFY HOW MUCH EXPANSION OF THE RECYCLED WATER INFRASTRUCTURE, IS THAT ONLY IN THE FULL BUDGET REQUEST THAT YOU PROVIDED -- THAT WAS PROVIDED TO SAWS YESTERDAY? 
          >> THERE'S NO EXPANSION OF THE RECYCLED WATER SYSTEM IN THE BUDGET 
          GOING FORWARD. >> MAYOR JONES: IN THE THREE OPTIONS THAT WERE PRESENTED YESTERDAY, IS THERE ANY EXPANSION AT THE RECYCLED WATER 
          INFRASTRUCTURE? >> I DON'T BELIEVE THERE'S AN EXPANSION OF THE RECYCLED SYSTEM IN THAT BUDGET. THERE'S SOME RELIABILITY PROJECTS THAT ARE IN THERE, AND, AGAIN, THAT BOTTOM LOOP, THAT HELPS WITH THE RELIABILITY OF THE EXISTING SYSTEM. IF WE WANT TO EXPAND IT, THAT'S A DIFFERENT CONVERSATION, BUT NONE OF THAT IS IN THE BUDGET 
          REQUESTS. >> MAYOR JONES: OKAY. IN EITHER OF THE THREE 
          OPTIONS THAT WERE PRESENTED? >> I BELIEVE THAT'S THE 
          CASE. >> THAT'S CORRECT. >> MAYOR JONES: OKAY. 
          OKAY. THANK YOU. WE MAY THEN HAVE TO -- I MEAN, BASED ON THE SENTIMENT AROUND HERE IN TERMS OF WE NEED MORE, WE MIGHT WANT TO -- AND I SEE THE CHAIR HERE, WE MIGHT WANT TO THINK ABOUT HOW WE INCLUDE THAT IN THOSE THREE -- IN ONE OF THOSE THREE OPTIONS CHAIR, IF YOU'D LIKE TO SAY SOMETHING. YOU'RE WELCOME TO. 
          . >> THANK YOU. I THINK NEXT YEAR WE ARE SCHEDULED TO ISSUE AN RFP TO DO MASTER PLANNING FOR THE RECYCLED SYSTEM, AND SO OBVIOUSLY A DELIVERABLE OUT OF THAT PROCESS WILL BE HOW WE EXPAND THE SYSTEM. NOW, IF THINGS START TO MOVE ALONG MORE QUICKLY, WE MIGHT NEED TO SPEED THAT UP SO THAT WE CAN RESPOND TO THE CUSTOMER INTEREST THATTAL LANE THAT AND DONOVAN SHARED WITH YOU TODAY, BUT THAT WAS THE SCHEDULE THAT WE DISCUSSED ON YESTERDAY. BUT WE'LL MONITOR THAT 
          AND MAKE ADJUSTMENTS APPROPRIATELY. >> MAYOR JONES: OKAY. 
          THANK YOU. DONOVAN, I WANT -- GO AHEAD. 
          >> I'D LIKE TO JUST REITERATE, WHAT WE HAVE ON THE BOOKS NOW AND THE ONES THAT ARE COMING IN, ALL OF THOSE ARE CAPABLE WITHIN THE EXIST TANS. 
          WE DON'T NECESSARILY NEED EXPANSION OF THE SYSTEM TO SERVE WHAT WE ALREADY KNOW IS OUT THERE. REALLY THE EXPANSION OF THE SYSTEM IS OUT INTO 
          [04:00:03]
THE FUTURE WHERE WE'LL NEED THAT AND BE ABLE -- NOT NEED IT, BUT WE'LL BE 
          ABLE TO TAKE ADVANTAGE OF IT. >> MAYOR JONES: IS THERE A MAXIMUM -- IS THERE MAXIMUM CAPACITY FOR THE RECYCLED WATER INFRASTRUCTURE BASED ON THE PILOT THAT CPS IS PROPOSING? 
          >> I DON'T KNOW IN TERMS OF THE PILOT, BUT THERE IS A MAXIMUM AMOUNT. 
          IT'S A FINITE SOURCE, THE RECYCLED WATER SYSTEM. WE'RE USING 20,000-ACRE FEET OUT OF IT RIGHT NOW. WHICH THINK WHICH CAN GET ANOTHER 10,000 OF IT INVESTIGATE RUE NOW. WHAT'S BEEN SHOWN SO FAR 
          IS ABOUT 3,000 OF THAT THAT'S BEING REQUESTED. >> MAYOR JONES: OKAY. 
          >> THAT'S JUST THE -- DATA CENTERS, MORE RIVER FLOW AND THOSE SORTS OF THINGS, SO YOU HAVE TO 
          BALANCE A LOT OF THESE NEEDS TOGETHER. >> MAYOR JONES: OKAY. 
          AND ELAINA, WE'RE NOT ENVISIONING THAT PILOT IN ANY WAY UTILIZING POTABLE 
          WATER, CORRECT, OR NEEDING TO? >> NO, MA'AM. 
          I MEAN, WE'RE -- YOU KNOW, AND I DID WANT TO SHARE, YOU KNOW, WE DO KNOW CUSTOMERS OF THE CURRENT FOOTPRINT THAT ARE IN THOSE LOWER PARTS OF THE FUNNEL THAT MAY BE INTERESTED IN THIS, AND WE ARE NOT ANTICIPATING GENERATION THAT WOULD SURPASS WHAT DONOVAN IS TALKING ABOUT RELATIVE TO THE 3,000 FOR THE DATA CENTERS THAT WE KNOW ARE IN CONSTRUCTION OR IN 
          AGREEMENT PHASE AT THIS POINT. >> MAYOR JONES: OKAY. 
          ON THE TOPIC OF THE PILOT, WHAT ARE THE CONSEQUENCES -- AUDIO] -- CAN YOU ACHIEVE THE THINGS THAT YOU'RE LOOKING TO UNDERSTAND WITHOUT ACCOMPLISHING THE PILOT? MY CONCERN, AS I SAID WITH THE PILOT, IS IT ESSENTIALLY ALLOWS THIS TO COME INTO THE COMMUNITY FASTER THAN IT WOULD OTHERWISE, AND SO I WANT TO MAKE SURE THAT THIS IS, IN FACT, THE ONLY WAY IN WHICH WE CAN UNDERSTAND THE THINGS THAT YOU'RE SEEKING TO UNDERSTAND THROUGH THE PILOT? 
          >> YES. AND I THINK RUDY MENTIONED IT, THE CUSTOMERS ARE -- BECAUSE OF THE EXPECTATION OF NEEDING BACKUP GENERATION, THESE RESOURCES ARE GOING TO -- THEY'RE GOING TO COME. 
          AND SO THE PILOT IS A WAY FOR US TO WORK ALONGSIDE THESE CUSTOMERS AND HELP UNDERSTAND THE IMPLICATIONS OF THE GEN SETS AND THE BEHIND THE METER SOLUTION, SO I WOULD SAY, NO, THERE'S NOT ANOTHER PATH FOR US TO UNDERSTAND THAT, BUT THAT THERE ARE ALTERNATIVES THAT THE CUSTOMERS WOULD PURSUE, LIKE WE MENTIONED, KIND OF TRUCKING IN NATURAL GAS AND OTHER ALTERNATIVES THAT MAY NOT BE AS HELPFUL TO THE 
          COMMUNITY. >> MAYOR JONES: WHAT IS OUR -- WHAT IS THE LEGAL FLEXIBILITY THAT WE HAVE ON THOSE APPROACHES THAT WE WOULD NOT FIND ATTRACTIVE? MAYBE THAT'S FOR ANDY OR SOMEONE ON YOUR LEGAL 
          TEAM. >> SEGOVIA: IN TERMS OF THE APPROACHES OF HOW TO 
          DEAL. >> MAYOR JONES: HOW THEY BROUGHT IT IN. 
          SO IF WE DID NOT LIKE THE IDEA, FOR EXAMPLE, AS MENTIONED HERE, THE IDEA OF TRUCKING IN L & G TO SUPPORT THE DATA CENTER, IS THERE ANY LEGAL 
          RECOURSE. >> SEGOVIA: PROBABLY THE MOST EFFECTIVE ONE ARE THE ONES THAT WE HAVE BEEN TALKING ABOUT, MAYOR, WHICH IS THE ZONING REGULATIONS IN TERMS OF WHAT SORT OF ACTIVITY AND HOW THAT ACTIVITY CAN BE SUPPORTED IN TERMS OF NEIGHBORING COMMUNITIES, ET CETERA. 
          >> MAYOR JONES: OKAY. WELL, SO I WANT TO MAKE SURE THAT WE, YOU KNOW, ARE SQUARING WHAT ELAINA JUST SAID WITH WHAT YOU JUST SAID, WHICH IS ELAINA JUST SAID IF WE DON'T DO THE PILOT, THEY COULD DO OTHER THINGS, AND YOU'RE SAYING, WELL, THOSE OTHER THINGS WE COULD ACTUALLY ADDRESS 
          VIA ZONING, CORRECT? >> SEGOVIA: SOME OF THOSE OTHER THINGS. 
          I DON'T WANT TO -- RIGHT. IT DEPENDS -- OBVIOUSLY THE DEVIL'S IN THE DETAIL, MAYOR, THAT WILL BE PART OF THE ZONING 
          PROCESS WE TALK ABOUT. >> SURE. RIGHT. 
          IT WILL DEPEND ON THE SITE, LET'S BE CLEAR. IF THE TEMPORARY POWER SOURCE IS CONNECTED TO A NATURAL GAS LINE. THEY WOULDN'T NEED THE TRUCKING. MANY SITES WILL ALLOW TRUCKS TO BE DELIVERED BASED ON THEIR ZONING, SO I JUST WANT TO BE CLEAR SOME OF THESE PLACES COULD HANDLE AS MANY TRUCKS AS THEY WANT A DAY BASED ON THEIR CURRENT ZONING. THERE WOULD BE SOME SITES THAT WE MAYBE WOULD HAVE SOME OVERSIGHT OF BUT MANY WE WOULDN'T. SO... 
          >> MAYOR JONES: OKAY. DO WE HAVE AN UNDERSTANDING OF HOW -- HOW THE -- ALLOWING FOR THE PILOT POTENTIALLY CHANGES THE TIMELINE FOR 
          SEEING THE DATA CENTERS IN THE COMMUNITY? >> SO WE DON'T ANTICIPATE THAT THEY'RE GOING TO CHANGE AS FAR AS WHEN THEY'RE COMING INTO THE COMMUNITY. THESE CUSTOMERS THAT MIGHT TAKE ADVANTAGE OF THE PILOT HAVE GONE THROUGH THEIR ELECTRICAL STUDIES. 
          THEY'VE -- THEY'VE SECURED SITE CONTROL, THEY HAVE CONSIDERABLE CAPITAL THAT THEY'VE DEPLOYED, SO WE ANTICIPATE THAT THEY WILL COME IN AT THE RATE THAT WE'RE -- THE LOW RAMP THAT WE'RE EXPECTING. 
          [04:05:02]
WHAT THIS DOES IS ENABLE THEM TO HAVE THAT BACKUP GENERATION AND PROVIDES A MEANS, BUT WE DON'T EXPECT THAT IT'S GOING TO AFFECT THEIR TIMELINES. 
          >> MAYOR JONES: SO THAT'S WITH THE ONES THAT WE KNOW, RIGHT, BUT DO WE -- BECAUSE THIS IS A TWO-YEAR PILOT, AND BECAUSE -- I MEAN, FRANKLY, EVERYONE IS LOOKING TO SET UP AS QUICKLY AS POSSIBLE, DO WE ANTICIPATE THIS PILOT POTENTIALLY, THOUGH, ENCOURAGING OTHERS TO ENTER THE COMMUNITY BECAUSE NOW THIS IS AN OPTION? 
          >> AGAIN, YOU KNOW, WE HAVE -- IF YOU GO BACK TO THE FUNNEL SLIDE, YOU KNOW, WE HAVE 11 CUSTOMERS THAT ARE TIED TO, YOU KNOW -- I'M MOVING INTO THE FUNNEL SO I CAN BE CLEAR HERE. THE 11 PROJECTS WITH THE 1700 MEGAWATTS, THOSE ARE THE PROJECTS THAT WE'RE LIKELY -- THAT WE WILL SEE, YOU KNOW, FULL OUTPUT IN THE NEXT FIVE TO SEVEN YEARS, BASED ON THEIR ELECTRICAL STUDIES, THESE ARE LIKELY THE CANDIDATE CUSTOMERS THAT COULD TAKE ADVANTAGE OF THAT PILOT OVER THE NEXT TWO YEARS. 
          THE OTHERS, BECAUSE OF WHERE THEY'RE AT IN THE STUDY PROCESS, IT'S LIKELY NOT GOING TO BE FEASIBLE FOR THEM TO HAVE THEIR PROJECT IN A PLACE THAT THEY COULD TAKE ADVANTAGE OF IT. SO, AGAIN, WE'VE CAPPED THE PILOT AT 15 CUSTOMERS, AND, AGAIN, WE EXPECT THE CUSTOMERS THAT MAY TAKE ADVANTAGE OF THIS ARE PROBABLY GOING TO HAVE DOZENS OF MEGAWATTS OF GENERATION, AND, AGAIN, WE'VE GOT THE TIME CAP. 
          >> MAYOR JONES: WHAT PERCENTAGE OF THE -- AND THIS IS FOR YOU, ELAINA, AS WELL, OF THE 1.7 BILLION OF THE FORECASTED CAPITAL AND THE 1.1 BILLION OF THE NONFUEL O & M, OF THE PREVIOUS BRIEFING, THE BUDGET, WHAT PERCENTAGE OF THAT IS DIRECTLY CONTRIBUTED IN SUPPORTING 
          GROWTH IN DATA CENTERS? >> IT'S GOING TO BE A SUBSET OF OUR GROWTH METRIC AND IT'S ALSO GOING TO BE A AWB SUBSET -- LAND -- I DON'T HAVE THAT NUMBER AT THE TOP OF MY HEAD --  BUT WE WILL CIRCLE BACK WITH YOU 
          WITH IT. >> MAYOR JONES: TO THE POINT THAT WAS MADE EARLIER, WHEN WE SAY TO OUR FOLKS, HEY, THIS IS CPS'S LARGEST BUDGET EVER IN TERMS OF CAPITAL AND O & M, EVERYONE'S GOING TO ASK HOW MUCH OF THAT IS GOING TO SUPPORT DATA CENTER, SO WE'VE GOT TO BE ABLE TO QUICKLY RATTLE THAT OFF, SO I APPRECIATE THAT. AND DONOVAN, YOU MADE A SOMEWHAT FUNNY COMMENT EARLIER WHEN YOU SAID, SO THE QUESTION WAS, HOW FAR WOULD WE LIKE THESE THINGS TO BE FROM THE RECYCLED WATER INFRASTRUCTURE, AND YOU SAID, YOU KNOW, CONTIGUOUS 48. 
          I THINK, YOU KNOW, WE JUST GOT A BRIEFING, AS YOU KNOW, FROM SAWS THAT SHOW WE HAVE THE THIRD HIGHEST AMOUNT OF MILES OF ANY WATER INFRASTRUCTURE IN THE COUNTRY. NEW YORK IS SIX TIMES LARGER THAN US, LOS ANGELES IS THREE TIMES LARGER THAN US, AND SO THE QUESTION ABOUT WHERE DO WE NEED TO PUT THESE, IT REALLY IS -- I MEAN, THAT'S WHY WE'RE ASKING THE QUESTION, IT'S NOT WHERE THEY WANT TO BE, IT'S WHERE WE NEED AND ALSO WANT THEM TO BE IN LIGHT OF NOT HAVING TO NEEDLESSLY CREATE INFRASTRUCTURE THAT WE THEN HAVE TO MAINTAIN, RIGHT? SO I DO -- WE DO LOOK FORWARD TO WORKING CLOSELY WITH SAWS TO MAKE SURE WE'RE BEING COGNIZANT OF THOSE INFRASTRUCTURE NEEDS, AND THOSE ARE KEPT TO A MINIMUM. 
          AND I.E. AS CLOSE TO THE EXISTING INFRASTRUCTURE AS POSSIBLE. 
          OKAY. I WANT TO, AGAIN, THANK COUNCILMAN GALVAN. 
          I WANT TO REITERATE THE IMPORTANCE OF THE CVA. THIS IS SOMETHING THAT HAS BEEN EXPLORED WITH SOME SUCCESS IN CERTAIN COMMUNITIES, BECAUSE IT IS -- I MEAN, VERY FEW JOBS. JOBS WHEN IT'S BEING BUILT, YES, BUT FRANKLY VERY FEW JOBS ONCE IT'S UP AND RUNNING, AND SO WHAT HAS BEEN MORE OF A SUCCESSFUL APPROACH IS FRANKLY BUILDING OUT MORE OF A CAMPUS-LIKE APPROACH, SO YOU'VE GOT THE DATA CENTER AND THE FACILITY NEXT TO IT WHERE PEOPLE ARE ACTUALLY HAVING JOBS RELATED TO THE DATA CENTER, BUT NOT -- IT'S NOT RELATED TO THE OPERATION OR MAINTENANCE OF IT. BUT FRANKLY IS RELATED TO A FACILITY THAT NEEDS THOSE -- THAT OPERATES OFF OF THEM. SO I THINK WE WOULD FRANKLY DO OURSELVES A LOT OF GOOD BY EXPLORING WHAT A CAMPUS-LIKE APPROACH WOULD LOOK LIKE FOR SOME OF THESE ENTITIES IN OUR COMMUNITY. OKAY. I AM SUPPORTIVE OF THE RECOMMENDATION TO EXPEDITE THE REVIEW OF AMENDMENTS TO THE UDC. 
          THESE COMPANIES ARE NOT WAITING ON OUR TIMELINES, SO WE SHOULD, AGAIN, PROACTIVELY HELP OURSELVES -- SPEARS MENTIONED, THIS IS MILITARY CITY USA, SO I THINK WE UNIQUELY UNDERSTAND THAT WE ARE IN A COMPETITION WITH THE PEOPLES REPUBLIC OF CHINA AND THE WAY IN WHICH WE HAVE THESE DATA CENTERS UP AND RUNNING TO 
          [04:10:01]
ACCOMPLISH WORK RELATED TO OUR NATIONAL ECONOMIC SECURITY IS NOT LOST ON THIS COMMUNITY, PROBABLY BETTER UNDERSTOOD THAN MOST, AS WE ALSO BALANCE ALL THE VERY THOUGHTFUL CONSIDERATIONS THAT WERE BROUGHT UP TODAY AS WELL AS IDENTIFIED IN THE CCR. SO MARIA, DO YOU WANT TO GO AHEAD AND SUMMARIZE WHAT YOU HEARD TODAY IN TERMS OF DO OUTS? 
          >> VILLAGOMEZ: YES, MAYOR. SO WHAT I HEARD FROM THE COUNCILMEMBERS, THERE'S AN INTEREST TO LOOK AT THE UDC AND BEGIN THE PROCESS OF MAKING THOSE AMENDMENTS, SO WHAT I'M THINKING WE ARE GOING DO IS COME BACK TO PCDC WITH WHAT THAT PROCESS WOULD LOOK LIKE. 
          SO WE CAN BEGIN THAT PROCESS. IN TERMS OF THE DATA CENTERS, THERE'S DEFINITELY SUPPORT, AND I THINK WHAT WE ARE GOING TO DO IS BASED ON WHAT WE HEARD TODAY, WORK WITH SAWS AND CPS, AND THEN COME BACK WITH AN UPDATE TO THE COUNCIL. I THINK BECAUSE OF THE SUPPORT, I -- WE -- MOVING FORWARD WITH THE PILOT PROGRAM IS SOMETHING THAT WE CAN START DOING NOW. SO THOSE ARE THE THREE THINGS THAT ARE MY TAKEAWAYS FROM TO TODAY. 
          >> MAYOR JONES: THANK YOU. TO CPS TEAM AND TO RUDY, WHAT COUNCILWOMAN KAUR SAID IN TERMS OF HOW MUCH MONEY WAS IN HERE, THAT WASN'T A KNOCK ON YOUR SALARY, RUDY.  DON'T GET UPSET. 
          I'M JUST KIDDING. NO, THANK YOU, AGAIN, FOR THE THOUGHTFUL COMMENTS AROUND THE TABLE. THANKS TO CPS AND SAWS AND, OF COURSE, THANKS TO THE DSD TEAM FOR THEIR EFFORTS TODAY. APPRECIATE IT. 
          THE TIME IS NOW 6:27 AND THIS MEETING IS ADJOURNED. 
          AND WE DO HAVE PUBLIC
* This transcript was compiled from uncorrected Closed Captioning.