[00:00:14]
WELCOME TO THE CITY COUNCIL B SESSION OF NOVEMBER 29TH, 2017.
COUNCIL MEMBER VINAL, COUNCIL MEMBER SHAW COUNCIL MEMBER VILLA GRAND WILL NOT BE HERE TODAY.
SHE'S ATTENDING A WORLD HERITAGE FORUM IN WASHINGTON DC.
COUNCIL MEMBER SALANA, COUNCIL MEMBER GONZALEZ.
COUNCIL MEMBER BROCK HOUSE COUNCIL MEMBER SAND DEVAL.
COUNCIL MEMBER ELIAS COUNCIL MEMBER COURAGE, COUNCIL MEMBER PERRY AND MAYOR NURENBERG.
WELCOME TO OUR CITY COUNCIL B SESSION EVERYONE.
[1. A briefing by the President & CEO of CPS Energy on the status of the utility and several projects and initiatives [Paula Gold-Williams, CPSE President & CEO]]
LONG PRESENTATION THIS AFTERNOON FROM OUR, UH, C P SS ENERGY UTILITY.SO, CHERYL, CAN YOU HELP US KICKOFF? GOOD AFTERNOON, MAYOR AND COUNCIL.
I HOPE EVERYONE HAD A HAPPY THANKSGIVING, AND WELCOME BACK TO WHERE'S OUR COUNCILWOMAN WITH A, A NEW DAUGHTER.
SHE'S GETTING A CUP OF COFFEE.
WELL, OUR CONGRATULATIONS TO SHIRLEY GONZALEZ ON THE BIRTH OF HER DAUGHTER, UH, MAYOR THIS AFTERNOON.
WE DO HAVE AN UPDATE FROM C P S ENERGY.
THERE ARE NO ACTION ITEMS THIS AFTERNOON, AND WE'RE NOT LOOKING FOR, UH, ANY DECISIONS THIS AFTERNOON.
BUT PAULA GOLD WILLIAMS, WHO IS THE CHIEF EXECUTIVE OFFICER OF C P SS ENERGY IS HERE, UH, TO KEEP YOU ALL INFORMED OF C P S ACTIVITIES.
UH, THAT PROCESS WILL BECOME MORE FORMALIZED IN THE NEW YEAR WHEN WE BEGIN TO HAVE BRIEFINGS FROM C P S AND SAN ANTONIO WATER SYSTEM ON A MORE REGULAR BASIS SO THAT THE COUNCIL MEMBERS CAN ENGAGE ON THOSE POLICY ISSUES THAT ARE GOING TO BE COMING BEFORE YOU FOR, FOR RATES AND DEBT FINANCING, SO THAT YOU ARE MUCH MORE FAMILIAR WITH BOTH OF THOSE ORGANIZATIONS AND OPERATIONS.
SO THIS ITEM TODAY WILL ALSO BE FOLLOWED BY AN EXECUTIVE SESSION WHERE WE WILL TALK WITH C UH, C P S ENERGY ON COMPETITIVE MATTERS THAT ARE ALLOWED, UH, UNDER THE, UM, STATE LAW.
SO, UM, WITHOUT FURTHER ADO, LET ME INTRODUCE PAULA GOLD WILLIAMS. WE'VE HAD A CHANCE TO WORK TOGETHER, AND I WILL SAY THAT ONE OF THE ADVANTAGES FOR SAN ANTONIO IS THAT, UH, THE CITY AS OWNER OF C P SS ENERGY AND OF SAS ENABLES US TO WORK VERY POSITIVELY ON ECONOMIC DEVELOPMENT PROJECTS AND RETAINING BUSINESS, GROWING BUSINESS IN SAN ANTONIO, AS WELL AS ATTRACTING BUSINESS TO THE COMMUNITY.
SO WE APPRECIATE THAT ECONOMIC DEVELOPMENT PARTNERSHIP AMONG THE OWNERSHIP PARTNERSHIP.
SO WITH THAT, LET ME TURN IT OVER TO PAULA.
THANK YOU SO MUCH FOR MAKING TIME ON ME ON YOUR VERY BUSY AGENDA, UM, AS WE HEAD TO THE END OF THE CALENDAR YEAR.
UH, ONE, I WANNA THANK OUR BOARD CHAIR ED KELLY FOR COMING.
UM, HE IS, UH, LIKE ALL OF OUR BOARD MEMBERS, VERY ENGAGED AND WAS ABLE TO BE HERE TODAY.
UM, ALL OF OUR BOARD MEMBERS ARE FAMILIAR WITH THE TOPICS THAT I'LL BE COVERING WITH YOU TODAY.
UH, THE OTHER THING IS, UH, RIGHTLY SO, UM, THE PRESENTATION IS HEAVY AND MEETS THE PAPER WEIGHT TEST.
UM, BUT PLEASE KNOW THAT I AM NOT HERE TO TORTURE YOU, UH, WITH ALL OF THESE TOPICS.
MY ULTIMATE PLAN IS TO TRY TO GIVE A COMPREHENSIVE VIEW.
I WANT TO TALK ABOUT OUR BACKGROUND.
I WANNA TALK ABOUT, UM, OUR PORTFOLIO AND HOW THE, OUR VALUE OF OUR COMPANY HAS EXISTED FOR SOME TIME, AND THINGS THAT WE REALLY SEE STRATEGICALLY HAPPENING BROADLY IN SAN ANTONIO, IN THE STATE, IN THE NATION AND GLOBALLY, AND WHAT THOSE IMPLICATIONS ARE.
I'M GONNA GIVE YOU SOME VIEW AND PERSPECTIVE ON HOW WE'RE LOOKING AT STRATEGY AND JUST, UM, IN BETWEEN, TRY TO GIVE YOU UPDATES ALONG THE WAY ABOUT SOME OF OUR PROGRAMS AND SOME RE RECENT, UH, UPDATES.
SO THAT SAID, HERE'S MY GOAL AND MY COMMITMENT.
WHAT I'D LIKE TO DO IS TALK FOR ABOUT 20 MINUTES WHEREVER I AM IN 20 MINUTES.
MY TEAM OVER HERE, YVONNE, AND THE NICE YELLOW, UH, JACKET IS GOING TO RAISE HER HAND AND SAY, CUT.
UM, AND I'M GONNA TAKE A PAUSE.
UM, I'D LIKE TO, TO TRY TO START ANSWERING QUESTIONS AS MUCH AS POSSIBLE.
IF WE END THE SESSION WITH ME ANSWERING QUESTIONS, THAT WOULD BE GREAT BECAUSE I AM GONNA COME BACK REGULARLY.
MY TEAM IS GOING TO PARTICIPATE.
WE'RE GOING TO MAKE OURSELVES AVAILABLE.
SO WHATEVER WE DON'T GET TO, WE'LL BE ABLE TO GET TO IN THE FUTURE, BUT AT LEAST, UM, WHATEVER WE DON'T GET TO, YOU ALSO HAVE THE ABILITY TO SEE
[00:05:01]
WHAT ELSE I'M GONNA COME BACK WITH.JUST IN GENERAL, WE WILL CONTINUE TO POLL YOU TO KNOW, UM, WHAT YOU'RE INTERESTED IN AND WHERE YOU WANT US TO ADDITIONALLY DRILL DOWN, PROVIDE MORE INFORMATION.
AND SO WE'LL BE WORKING OVER THE NEXT YEAR, REALLY, AS CHERYLL SAID, TRYING TO GIVE YOU MORE CONTEXT ABOUT THE BUSINESS AND THE ASSETS THAT'S COMMUNITY OWNED THROUGH THE CITY OF SAN ANTONIO.
SO WITH THAT, I'M GONNA GO AHEAD AND, AND, UH, JUMP RIGHT IN.
SO, UM, UH, THERE'S A LOT OF STUFF HERE, BUT AGAIN, IF YOU LOOK AT IT, WE HAVE A RANGE OF LOOKING AT THE BACKGROUND, AND I'M GONNA MOVE ALL THE WAY THROUGH THOSE TOPICS DESCRIBED EARLIER AND REALLY MOVE INTO FUTURE CONSIDERATIONS OVERALL, LIKE HOW ARE WE SPRINGBOARDING INTO THE NEW YEAR, COMING FORWARD 2018.
SO, UM, I'LL REALLY MAKE IT SIMPLISTIC, AND THESE ARE YOUR SLIDES.
SO I WON'T BE READING OFF OF SLIDES, BUT I WILL HIGHLIGHT A COUPLE OF THINGS ABOUT, YOU KNOW, WHAT ARE OUR NUMBERS IN GENERAL, YOU KNOW, WHAT ARE THE BIG TAKEAWAYS? UM, UM, I WILL SHARE WITH YOU AGAIN, THE ASPECT OF THE BOARD.
AND THERE'S A, WE'RE ACTUALLY GOING IN THE MIDDLE OF A BOARD SEARCH, SO I'LL JUST TOUCH ON THAT A BIT.
WE WILL LET YOU LOOK AT THE SENIOR, UH, CHIEF TEAM, HOW I'VE ASSEMBLED IT, UM, FOR OUR ORGANIZATION AND, AND STRUCTURE.
I'LL TALK A LITTLE BIT ABOUT CREDIT RATINGS.
WE ALWAYS GET SOME COMMENTS ABOUT CREDIT RATINGS AND, AND THE DYNAMICS OF THAT.
AND I'M GONNA GIVE YOU A LITTLE BIT MORE CONTEXT ABOUT WHAT'S THE SUBSTANCE OF THAT.
AND THEN JUST, UM, TALK ABOUT THE CULTURE.
THE CULTURE IS EXTREMELY IMPORTANT.
SO LET'S, LET'S JUMP INTO THAT.
SO, UM, AGAIN, NOT TO, NOT TO BELABOR YOU CAN SEE THIS, BUT WE REALLY KIND OF PAY ATTENTION TO THE NUMBERS.
WE ARE THE LARGEST ELECTRIC AND GAS MUNICIPAL UTILITY IN THE NATION.
UM, IF YOU, IF YOU, YOU KNOW, STROLL THROUGH THAT, WE HAVE TOP NUMBERS AND WIND IN, IN THE STATE AND SOLAR.
UM, WE, WE'VE GONE OVER 800,000 CUSTOMERS.
UM, WE, AS CHERYL SAID, WE'RE VERY FOCUSED ON ECONOMIC DEVELOPMENT, AND WE DO IT AS MUCH AS WE CAN IN ANY WAY.
SO WE'LL WORK WITH THE SAN ANTONIO ECONOMIC FOUNDATION.
I SIT ON THE, UM, EXECUTIVE BOARD WITH CHERYL.
UM, WE ALSO ARE MEMBERS OF THE FREE TRADE ALLIANCE.
SO WE TRY TO DO THE THINGS THAT MAKE SURE WHEN NEW BUSINESSES COME HERE OR THEY WANNA EXPAND, WE CAN BE HELPFUL.
BUT WE ALSO WORK WITH OUR NEW ENERGY ECONOMY PARTNERS.
IT'S A, IT'S A MECHANISM WHERE WE CREATED AN ECOSYSTEM ABOUT FOUR YEARS AGO.
UM, AND THAT ECOSYSTEM SUPPORTS NEW ENERGY TECHNOLOGIES, RENEWABLES, THOSE TYPE OF THINGS.
SO I'LL, I'LL, AGAIN, YOU CAN READ THAT AND, AND WE'LL BE ABLE TO TALK ABOUT NUMBERS IN MORE DETAIL.
AS I SAID EARLIER, UM, ED KELLY IS OUR BOARD CHAIR.
HE IS IN HIS SECOND YEAR OF BEING, UM, BOARD CHAIR THIS TIME.
UM, DEREK, UH, HOWARD IS OUR VICE CHAIR.
AND WHAT'S INTERESTING ABOUT THAT, HE'S FINISHING HIS 10TH YEAR.
OUR BOARD MEMBERS CAN SERVE TWO FIVE YEAR TERMS. HE'S ENDING HIS 10TH YEAR, AND NOW THE BOARD IS IN SEARCH MODE FOR THAT REPLACEMENT.
WE HAVE, UM, FINISHED THE PUBLIC PROCESS.
WE GOT ABOUT 18, 20 18 APPLICATIONS.
AND THAT PROCESS IS BEING CONDUCTED WITH THE MAYOR'S PARTICIPATION.
AND ALL THE, THE BOARD MEMBERS ARE LOOKING AT THE CANDIDATE'S POOLS, AND THEY'RE GOING TO BE MOVING SOON INTO THE FIRST ROUND OF PRELIMINARY AND, UM, UH, INTERVIEWS.
SO I THINK THE ULTIMATE PLAN IS TO TRY TO MAKE THAT PROCESS, UM, FLUID, TRY TO MAKE SURE THAT WE HAVE ENOUGH TIME FOR THE CANDIDATES TO GET ACQUAINTED WITH THE BOARD AND UNDERSTAND THE, THE COMMITMENTS AND OBLIGATIONS WITH THAT.
UM, AND THEN ULTIMATELY BY THE, THE FEBRUARY COUNCIL MEETING, HAVE A RECOMMENDATION TO YOU SO THAT YOU CAN IN FACT, RATIFY THE PROPOSAL FOR THE BOARD MEMBERS.
AND THERE'LL BE A LOT OF INFORMATION AND QUESTION ANSWERING ABOUT THE CANDIDATE THAT THE BOARD BRINGS FORTH.
GUEVARA, AND, UH, HE'S AN ECONOMICS, UH, PHD AT NORTHWEST VISTA.
JOHN STE IS A, AN ATTORNEY, UM, HAS BEEN LONG PRACTICING IN, UH, A LONG-TERM SAN ANTONIO MEMBER OF OUR COMMUNITY.
AND OF COURSE, THE MAYOR SERVES IN THE EX OFFICIO CAPACITY.
PROBABLY A LITTLE BIT HARD TO READ, BUT THIS IS MY SENIOR TEAM.
UM, IT'S MY, MY SENIOR CHIEFS, I HAVE A CHIEF OPERATING OFFICER, AND THEY'RE, THEY'RE ALL ON THE GALLEY OVER HERE.
CHIEF OPERATING OFFICER, A CHIEF SECURITY AND SAFETY OFFICER.
I WOULD HIGHLIGHT THAT IT WAS INITIALLY A SAFETY AND SECURITY OFFICER, BUT SECURITY, UH, BOTH CYBER AND PHYSICAL ARE GETTING TO BE MUCH MORE IMPORTANT THINGS IN OUR INDUSTRY.
SO WE ARE FLIPPING OUR FOCUS TO TRY TO GET THE SECURITY ASPECT OF IT AT THE SAME LEVEL OF FOCUS AS WE'VE HAD WITH THE SUCCESS OF OUR SAFETY PROGRAM.
WE HAVE A CHIEF CUSTOMER ENGAGEMENT OFFICER.
UM, THAT IS NOT AS COMMON IN THE INDUSTRY AS YOU WOULD THINK.
CUSTOMER IS EXTREMELY IMPORTANT IN AN EVOLVING FOCAL POINT, NOT JUST PRACTICALLY 'CAUSE WE KNOW THAT, BUT IN THE INDUSTRY WE HAVE, WE HAVE LONG TIME MOVED TO REALLY PAYING ATTENTION
[00:10:01]
TO WHAT'S IMPORTANT IN THE INTEREST OF OUR CUSTOMERS.SO WE HAVE A STRATEGIC PERSON WHO HAS DECADES OF EXPERIENCE IN THE INDUSTRY AND IS HELPING US EVOLVE OUR ABILITIES TO HAVE BETTER CONTACT.
WE HAVE A CHIEF LEGAL AND ADMINISTRATIVE OFFICER, A CHIEF FINANCIAL OFFICER, AND NOW A, A NEW C I O KAREN KIERAN IS OUR NEWEST ADDITION TO THE SENIOR TEAM WITH A TREMENDOUS AMOUNT OF EXPERIENCE IN BEING A, BOTH A C I O AND A CONSULTANT.
AND WE RECENTLY RECRUITED HER TO SAN ANTONIO.
UM, SO THIS IS AN EVEN BUSIER CHART, BUT YOU HAVE IT IN FRONT OF YOU.
THE THING I WANNA HIGHLIGHT, PEOPLE ASK US ALL THE TIME ABOUT OUR CREDIT RATING.
WE ARE EXTREMELY PROUD OF THE CREDIT RATING WE HAVE.
WE HAVE A DOUBLE A PLUS, UM, CREDIT RATING IN THE INDUSTRY, AND I'LL LET YOU, YOU KNOW, LOOK AT THIS LATER.
BUT THE POINT PRIMARILY IS IN THE ENERGY BUSINESS.
UM, THERE'S ONLY ONE CURRENTLY ONE CREDIT COMPANY IN BOTH THE IOUS, UM, INVESTOR OWNED UTILITIES AND MUNICIPALS.
AND THE REASON WHY IT IS AAA IS T V A TENNESSEE VALLEY AUTHORITY IS BECAUSE IT IS GUARANTEED BY THE FEDERAL GOVERNMENT.
AND SO IT HAS AN EXTRA ARM OF, UH, SECURITY AROUND IT.
AND THEN YOU HAVE, UM, OTHER PARTICIPANTS, YOU SEE US IN THE GROUP THERE.
UM, AND WE'RE INCLUDED IN THAT NEXT TIER OF DOUBLE A PLUS CREDIT CREDIT RATINGS.
UM, I WILL GLADLY COME BACK AND TALK TO YOU SOME MORE ABOUT THOSE CONSIDERATIONS.
THE, UM, THE CREDIT RATING AGENCIES, WHICH WE WILL BE VISITING IN DECEMBER, WE, I VISIT AT LEAST ANNUALLY TO MAKE SURE THAT THEY UNDERSTAND OUR BUSINESS AND WHAT WE'RE DOING.
THEY, THEY LOOK AT A LOT OF THINGS.
THEY LOOK AT YOUR FINANCIAL STRENGTH PRIMARILY, BUT THEY ALSO LOOK AT YOUR MANAGEMENT REPUTATION, YOUR GOVERNANCE MODEL, UM, HOW YOU'RE VIEWING STRATEGICALLY THE INDUSTRY, THINGS THAT YOU'RE MAKING DECISIONS ABOUT.
AND THEY TAKE ALL OF THOSE INTO CONSIDERATION IN YOUR PAST PERFORMANCE.
AND WHAT'S THE PROGNOSIS OF SUCCESS GOING FORWARD? UM, I WOULD, I WOULD ADD, JUST AS A CLIFF NOTE, I MEAN A, A, A VERSION OF THIS.
WHAT IS CHALLENGING IN THE INDUSTRY? THE REASON WHY DOUBLE, UH, AAA CREDITS ARE NOT COMMON IS BECAUSE OF THE COMPLEXITY OF THE BUSINESS.
AND WE HAVE TALKED TO CREDIT RATING AGENCIES SPECIFICALLY ABOUT THIS.
WHEN YOU ARE IN EVERY ASPECT OF THE ENERGY BUSINESS, YOU ARE GENERATING POWER.
YOU'RE TRANSMITTING IT THROUGH THE BIG TRANSMISSION SYSTEM, YOU'RE PUTTING IT THROUGH THE DISTRIBUTION SYSTEM, AND YOU'RE SENDING IT TO BUSINESSES.
AND WE ALSO CARE FOR OUR CUSTOMERS.
WHEN YOU HAVE THAT LEVEL OF COMPLEXITY.
AND EVEN IN OUR PORTFOLIO, WE HAVE A DIVERSE RANGE OF COMPLEX GENERATION RESOURCES, PURCHASE POWER AGREEMENTS, THOSE TYPES OF THINGS.
AND THAT BUSINESS AND COMPLEXITY, EVERY RATING AGENCY HAS TOLD US THAT COMPLEXITY ALONE KEEPS YOU FROM GETTING TO THAT AAA CREDIT RATE.
BUT WE DO ASK EVERY TIME WE GO, CAN WE GET THERE? AND, AND, UM, WHAT ELSE MAKES, UM, A DIFFERENCE FOR THAT? IT DOES BENEFIT US.
I THINK IT'S A MUTUAL BENEFIT FOR THE CITY TO BE AAA RATED, AND WE ARE VERY PLEASED WITH THAT.
IT SHOWS THAT SAN ANTONIO IS A STRONG CREDIT CITY, AND WE TAKE OUR CREDIT RATING VERY SERIOUSLY.
UM, YOU PROBABLY HAVE HEARD ME TALK ABOUT IT OR SOMEHOW HEAR ME QUOTED.
UM, ALL THAT SAID, THE PEOPLE ARE EXTREMELY IMPORTANT.
UM, AND WE LOOK AT, UM, EVERYTHING THAT WE DO IN TERMS OF A PEOPLE FIRST FOUNDATION AND THE PHILOSOPHY.
WE BELIEVE THAT WE HAVE TO HAVE OUR CUSTOMERS AS THE BEACONS.
AND WE HAVE A WIDE RANGE, OBVIOUSLY, OF CUSTOMERS ALL ACROSS SAN ANTONIO.
AND WE HAVE TO FOCUS ON THE THINGS THAT ARE IMPORTANT TO THEM AND WHAT THEY ASK AND WHAT THEY, WHAT THEIR EXPECTATIONS ARE.
AT THE SAME TIME, WE HAVE TO KEEP WORKING WITH OUR EMPLOYEES, DEVELOPING THEM, IMPROVING THEIR SKILLS, EXPANDING THEIR SKILLS, AND MAKING SURE THAT THEY'RE ENGAGED AND THEY'RE REALLY ABLE TO MEET THE EXPECTATIONS OF OUR CUSTOMERS, AND THEN REALLY KIND OF ANCHOR OURSELVES IN BEING A UTILITY THAT SERVES, UM, IN THE COMMUNITY IN WHICH IT LIVES PEOPLE LIVE, OUR EMPLOYEES LIVE THERE.
SO IT'S A VERY SIMPLISTIC APPROACH, CUSTOMERS, EMPLOYEES, AND COMMUNITY.
BUT IT IS THE WAY FOR US TO ALWAYS MAKE SURE THAT WE ARE FOCUSED ON THE RIGHT THINGS.
IF IT'S NOT BENEFITING CUSTOMERS, EMPLOYEES OF COMMUNITY, THEN WE SHOULDN'T BE DOING IT.
SO, UM, CUSTOMERS, I'M, I'M ACTUALLY GONNA JUST, LET'S GO STRAIGHT INTO THOSE SLIDES I WANT TO TALK TO YOU ABOUT, BECAUSE AGAIN, WE ANCHOR THERE.
UM, THIS IS JUST A, UM, HIGHLIGHT.
I THINK WE'VE COME OVER AND EVEN TRIED TO HAVE THE BUS OVER HERE BEFORE WE HAVE A MOBILE SUPPORT UNIT.
IT'S A BIG BLUE BUS WHERE WE USE THAT TO HAVE OUTREACH.
WE GO OUT TO CONSTRUCTION SITES, WE GO OUT TO SCHOOLS, WE GO TO DIFFERENT EVENTS, FAIRS, NEIGHBORHOOD ASSOCIATIONS.
WE CAN CONTINUE TO MAKE THOSE AVAILABLE TO ALL OF YOU WHEN WE ARE THERE TO GIVE PEOPLE, UM, EDUCATION ON OUR PROGRAMS AND HELP THEM WITH ACCOUNT ISSUES OR WHAT, WHATEVER WE CAN DO.
WE HAVE THE ABILITY TO USE THIS, UM, IN CERTAIN SITUATIONS.
YOU CAN'T USE IT IN EVERY SITUATION BECAUSE IF THERE'S A LOT OF, YOU KNOW, UM, TREE DAMAGE AND THINGS ON THE GROUND, YOU REALLY CAN'T GET YOUR, YOUR, THAT
[00:15:01]
BIG UNIT.BUT, BUT ULTIMATELY AS EVERYTHING, IT HAS AN EDUCATIONAL UNIT.
IT HAS BACKUP STORAGE WHERE PEOPLE CAN ACTUALLY, YOU KNOW, CHARGE UP THEIR PHONES.
WE CAN PULL UP OUR COMPUTERS AND OUR SYSTEMS. UM, AND, AND WE HAVE A, UM, UM, UH, WHEELCHAIR ACCESSIBLE PORT INTO THE UNIT.
ALL OF THOSE THINGS ARE AVAILABLE IN REALITY.
UM, PART OF THIS CAME FROM A CHALLENGE FROM THE COUNCIL, I THINK BACK IN 2013 TO TALK ABOUT, REALLY GET OUT IN THE COMMUNITY MORE AND REALLY WORK WITH THE CITY OF SAN ANTONIO AND BE COUNTY ABOUT WITH BETTER OUTREACH.
SO I JUST WANTED TO HIGHLIGHT THAT THAT PROGRAM IS GOING, WE'RE MOVING FORWARD AND WE WILL CONTINUE TO USE THAT UNIT GOING FORWARD TO BE AS HELPLESS AS POSSIBLE.
UH, YES, WE CONTINUE TO STAY COMMITTED TO ECONOMIC DEVELOPMENT.
WHAT I HAVE TO, TO REALLY, YOU KNOW, FOCUS ON IS, UM, OUR RATES HAVE BEEN, WE'VE BEEN WORKING ON KEEPING THEM AFFORDABLE AND MAKING SURE THAT CUSTOMERS GET GOOD SERVICE.
AND YOU'LL SEE HOW WE'VE BEEN FOCUSING ON THINGS LIKE OUR CALL CENTER, UM, SERVICE LEVELS.
BUT ADDITIONALLY, WE'VE BEEN DOING QUITE A BIT OF OUTREACH TO THE BUSINESS COMMUNITY DEVELOPERS AND CONTRACTORS ACROSS TOWN.
'CAUSE WE REALIZE THAT IF WE DON'T KEEP IMPROVING OUR PROCESSES, WE CAN BE THE BOTTLENECK FOR THEM TRYING TO CREATE MORE BUSINESSES AND REALLY, UM, GET NEW HOMES BUILT AND SUBDIVISIONS AND, AND APARTMENT COMPLEXES.
ALL OF THOSE THINGS REALLY BECOME, UM, IMPORTANT FOR US TO SUPPORT.
SO WE'VE UPPED OUR CONNECTION WITH THEM.
WE HAVE, UM, HIGHLIGHTS, UH, CONTACT MEETINGS, REAL ESTATE COUNCIL AND DIFFERENT ORGANIZATIONS WHERE WE CAN TELL 'EM WHAT WE'RE WORKING ON.
WE'VE ALSO CREATED SOME, A NEW WEB PORTAL FOR THEM TO HAVE MORE EASE OF SEEING WHERE THEIR PROJECTS ARE.
WE WILL STAY COMMITTED ON THIS BECAUSE WE KNOW IT'S, IT'S THE ENGINE FOR MOVING THE ECONOMIC DEVELOPMENT, UM, FORWARD.
UM, ANOTHER THING WE DID THIS PAST YEAR IS TO SUPPORT THAT WE HAD KEY ACCOUNT MANAGERS, BUT WE PROBABLY DIDN'T HAVE ENOUGH PEOPLE ABLE TO JUST MANAGE ACCOUNTS AND RELATIONSHIPS.
SO RECENTLY WE ADDED FIVE EXECUTIVES, AND THEY REALLY WEREN'T ADS.
THEY WERE OUR EXECUTIVES THAT HAD A LOT OF EXPERIENCE SOMEWHERE IN THE COMPANY.
AND WE BROUGHT THEM IN TO SPECIFICALLY FOCUS ON CUSTOMERS AND HELPING THEM SOLVE THEIR PROBLEMS, RESOLVE ISSUES, THINK ABOUT THEIR GROWTH, UM, REQUIREMENTS, WHATEVER A CUSTOMER NEEDED.
WE NOW HAVE MORE EYES AND EARS ON, ON THE PROGRAM.
WE STILL HAVE OPERATIONAL PEOPLE WHO HELP US DO THAT.
AND, AND THEN EXTERNAL RELATIONS FOLKS THAT HELP US.
BUT THIS GROUP IS SOLELY FOCUSED ON ANY CUSTOMER ACCOUNT ACTIVITY.
AND WE'VE SEEN A REALLY GOOD RESPONSE IN TERMS OF HAVING THEM AVAILABLE TO HELP THEM RESOLVE ISSUES, UM, WORK OUT KINKS IN THE PROCESS, THAT KIND OF THING.
UM, THIS CHART, UH, WHAT IT REALLY IS, IS IT SHOWS THAT EVERY YEAR WE, WE HAVE KIND OF A VOLUMETRIC BUSINESS DRIVEN BY, UH, PRIMARILY, UM, WEATHER PATTERNS.
SO OF COURSE WHEN THE, WHEN THE SUMMER'S HIGH, THEN WE HAVE TO GENERATE MORE CAPACITY.
EVERYTHING GETS HIGHER, PHONE CALLS GO UP, OF COURSE, IN THAT SUMMER PERIOD.
UM, WHEN, WHEN YOU LOOK BACK AT THIS CHART, ABOUT TWO YEARS AGO, WE ACTUALLY HAD PROBABLY THE WORST PERFORMING CUSTOMER SERVICE YEAR EVER.
UM, WE HAD DONE A LOT OF THINGS, BUT WE WERE, WE WERE CUTTING BACK TOO MUCH.
WE DIDN'T HAVE ENOUGH PEOPLE ON THE PHONE.
UM, OUR SYSTEMS NEEDED TO BE UPGRADED, OUR PROCESSES WERE BEHIND.
AND IF YOU SEE THE RED LINE THERE, UM, WE REALLY GOT TO WHAT A LOW SERVICE LEVEL.
AND THAT MEANS HOW MANY CALLS CAN BE ANSWERED IN 30 SECONDS.
SO THAT, THAT IS AN UNACCEPTABLE LEVEL OF ANYBODY THAT HAS A CALL CENTER STRATEGY AND, AND OPERATIONS.
SO THE GREEN LINE SHOWS THAT WE'VE BEEN PUTTING IN A LOT OF EFFORT TO DO THAT.
WE HAVE STACKED UP OUR TEAM, WE'VE RETRAINED THEM, WE'VE GIVEN THEM ADDITIONAL SKILLS.
WE'VE MADE SURE THAT THEY ACTUALLY TALK TO OUR CUSTOMERS, NOT TO JUST SOLVE THE PROBLEM OF THE MOMENT, BUT TO MAKE SURE THAT THEY'RE AWARE OF OUR PROGRAMS AND ACTIVITIES.
AND SO OUR CALL CENTER QUALITY HAS IMPROVED THE WHOLE TIME.
AND SO IF YOU LOOK AT THE GREEN LINE, IT'S STILL, YOU KNOW, IT'S STILL A CHALLENGE, BUT WE ARE EASILY INTO THE EIGHTIES, EVEN HIGH EIGHTIES.
AND, AND WE'LL CONTINUE TO MAKE SURE THAT WE HAVE MUCH HIGHER LEVELS IN THE FUTURE.
BUT THAT IS ONE OF THE AREAS THAT, THAT WE KNOW THAT WE NEED TO CONTINUE TO FOCUS ON.
I WILL SAY THAT, YOU KNOW, OF COURSE WE UNDERSTAND NOT EVERY CUSTOMER WANTS TO CALL US.
UM, OTHERS WANT PORTALS AND, AND APPS AND TECHNOLOGY.
AND WE'VE IMP IMPLEMENTED THOSE AS WELL TO MEET THE NEEDS OF CUSTOMERS THAT REALLY LIKE MORE OF AN ELECTRONIC INTERACTION.
WE CAN MEET THOSE NEEDS AS WELL TODAY.
UM, THIS, UH, CHART HERE BASICALLY SHOWS, UM, OUR PROGRAMS. AND, UM, I WILL BE BRINGING YOU, I FOUND OUT THAT THIS IS NOT THE MOST UP-TO-DATE, UH, CHART.
AND THE, ONE OF THE MOST IMPORTANT ONES IS THE AFFORDABILITY DISCOUNT PROGRAM.
WE'RE PROBABLY ACTUALLY AT ABOUT 52,000 CUSTOMERS.
[00:20:01]
IF WE GO BACK TO ABOUT THE FISCAL YEAR 2017, WE HAD ABOUT 40,000 CUSTOMERS IN THE PLAN.SO WE'VE INCREASED THAT PARTICIPATION ABOUT OVER 20%.
AND OUR GOAL IS TO MAINTAIN THAT AND KEEP MAKING SURE THAT PEOPLE WHO NEED ASSISTANCE CAN GET ASSISTANCE.
IN ADDITION TO THE AFFORDABILITY DISCOUNT, WE ALSO HAVE THE REAP PROGRAM THAT ALLOWS CUSTOMERS TO GET CREDIT ASSISTANCE IN THE SUMMER WHERE, UM, BILLS GET HIGHER AGAIN, AND OFTENTIMES, SOMETIMES IN THE WINTER THEY GET HIGHER.
SO WE HAVE THESE AND MANY OTHER PROGRAMS THAT ARE AVAILABLE TO HELP CUSTOMERS WHO NEED IT TO, TO MOVE FORWARD AND, AND REALLY HAVE A GREAT QUALITY OF LIFE.
UM, THIS IS A, THIS IS A, A BIT OF A UPDATE THAT I WANTED TO PROVIDE.
SO, UM, J B S A IS ONE OF, OF OUR LARGEST CUSTOMERS, AND WE ARE VERY PROUD THAT WE LIVE IN MILITARY CITY.
U SS A, UH, ABOUT FIVE YEARS AGO, THE MILITARY, UH, WAS LOOKING AT SEVERAL THINGS.
THEY WERE LOOKING AT RESILIENCY PROJECTS.
THEY WERE LOOKING AT, UM, WANTING TO DO MORE, UM, RENEWABLES, UM, OTHER ACTIVITIES.
AND THEY ALSO DECIDED THAT THEY NEEDED TO FOCUS ON THEIR CORE MISSIONS.
AND THE CORE MISSIONS DIDN'T INCLUDE UPDATING THE INFRASTRUCTURE FOR THEIR ELECTRIC SYSTEMS ON BASE.
UM, SOME OF THEM HAVE GAS SYSTEMS AS WELL.
AND SO THEY THOUGHT ABOUT PRIVATIZING IT.
AND WE'VE DONE THIS BEFORE, UH, SO WE DECIDED TO BID ON THAT BUSINESS.
I'M GLAD TO SAY THAT JUST RECENTLY OVER THE LAST MONTH, WE'VE GOT NOTICE THAT WE COMPETITIVELY BID TO ACTUALLY TAKE OVER THE INFRASTRUCTURE MAINTENANCE OF, OF THE BASIS AT J B S A.
AND WE REWARDED THAT CONTRACT, AND WE WILL SOON MOVE INTO A PERIOD WHERE WE CAN WORK ON HOW TO TRANSITION THOSE EFFORTS.
WE WILL TAKE THAT MAINTENANCE OVER, THEY WILL PAY US FOR THE ABILITY TO MAINTAIN THOSE ACCOUNTS, AND THEN, UM, AND THEN THEY CAN REALLY FOCUS ON THE THINGS THAT ARE IMPORTANT TO THEM.
THIS IS A 50 YEAR DEAL IN TERM IS LONG TERM.
I JUST, I'M ALSO A, UM, HONORARY JOINT BASE COMMANDER.
I JUST CAME OUT, UH, YESTERDAY.
I WAS OUT THERE WITH, UH, UH, UH, BRIGADIER GENERAL PRINGLE.
AND, UM, REALLY, WE, WE DID A TOUR OF THE RANDOLPH AIR FORCE BASE, AND WE WERE TALKING AGAIN ABOUT THE SUPPORT THAT IS COMING FROM C P SS ENERGY AND HOW WE'RE GLAD TO DO THAT AND ALSO HAD A GOOD CONVERSATION WITH SOME OF THE WORK THAT WE'RE THINKING ABOUT FOR SMART CITY.
WE ARE PARTNERING WITH CHERYL AND THE MAYOR AND ALL OF YOU ON THE VISION OF WHAT SMART CITY COULD BE, AND REALLY BELIEVE THAT J B S A IS GONNA BE A GREAT PLACE FOR US TO REALLY DO PILOTS AND OTHER ACTIVITIES OUT THERE.
AND, AND IT'S ALL KIND OF WORKING TOGETHER TO ALIGN, WHICH WE ARE VERY PLEASED ABOUT.
SO THERE IS SEVERAL CHARTS THERE FOR, UM, FOR YOU TO, TO LOOK AT.
THIS AGAIN BASICALLY SAYS THAT THEY CAN FOCUS ON THEIR MAIN MISSIONS IF WE TAKE OVER THE ACTIVITY ON THEIR INFRASTRUCTURE.
UM, SO I WANTED TO HIGHLIGHT, UM, YOU KNOW, WE HAVE BEEN WORKING VERY HARD, YOU KNOW, THE, THE, THE, UH, CALL TO ARMS WHEN OUR SERVICE LEVELS WERE SO LARGE, UM, WERE SO SMALL AND LOW.
WE HAD A CALL TO ARMS INTERNALLY ABOUT WHAT DO WE NEED TO DO TO FOCUS ON MEETING THE COMMITMENTS OF THIS, UM, COMMUNITY.
AND, UM, ONE OF THE THINGS THAT WE ARE PROUD ABOUT IS THAT RECENTLY WE WON TOP HONORS IN THE SOUTHERN REGION FOR THE M S I PROGRAM.
AND WHAT IT BASICALLY REFLECTS IS THEY SURVEY ABOUT 50,000 CUSTOMERS, AND THEN THEY PUT ALL OF THE UTILITIES IN A REGION COMPETITIVE BASE.
AND FOR OUR REGION, WE HAVE MOVED UP.
AND I THINK IT'S A REFLECTION OF ALL THE HARD WORK OF THE 3,100 PLUS EMPLOYEES REALLY WORKING TOGETHER AND REALLY ABSORBING THIS, MAKING SURE WE'RE PAYING ATTENTION TO OUR CUSTOMERS AND COMMUNITY.
SO I JUST WANTED TO SHARE THAT.
HOW MANY MINUTES DO I HAVE? ONE, ONE AND A HALF MINUTE.
WELL, I HAVE ANOTHER SECTION, UH, TO GO, BUT AGAIN, I, I CAN, I CAN TELL I'VE TALKED A LOT.
SO WHY DON'T I PAUSE A LITTLE EARLY, LIKE I SAID, TO SEE IF YOU HAVE ANY QUESTIONS FOR ME.
IF YOU DON'T, I'LL KEEP GOING, BUT IF YOU DO, I'LL BE GLAD TO ANSWER THOSE.
SO GIVE ME, GIMME ANOTHER FLAG IN ABOUT 15 MINUTES.
WHILE YOU'RE PAUSING, I FAILED TO MENTION THAT WE ARE ALSO CELEBRATING A BIRTHDAY TODAY, UH, OR A BIRTHDAY FROM LAST WEEK.
UH, COUNCILMAN SHAW, UH, TURNED 20.
THERE IS CAKE BY THE COFFEE, SO IF ANYONE IS INTERESTED IN CELEBRATING, FOR REAL.
WE'LL WAIT TILL WE'RE, WE'RE, WE'RE ADJOURNED TO SING HAPPY BIRTHDAY, SO.
OH, YOU DON'T WANT ME SING, THAT'S FOR SURE.
OKAY, SO, UH, SO I'LL, I'LL JUMP INTO THIS ONE A BIT.
SO I'LL JUST, LET'S GO FORWARD.
SO RELIABILITY AND, AND RESILIENCE
[00:25:01]
WE UNDERSTAND IS EXTREMELY IMPORTANT TO THE BUSINESS THAT WE HAVE.EVERY UTILITY NEEDS TO FOCUS ON IT.
AGAIN, WE BELIEVE THAT WE NEED TO KEEP OUR COMMITMENTS TO OUR COMMUNITY.
BUT A COUPLE THINGS I WANTED TO HIGHLIGHT.
YOU KNOW, IT'S BEEN A TOUGH YEAR, AS WE ALL KNOW, BETWEEN THE TORNADO DAMAGES THAT WE HAD EARLIER IN THE YEAR AND THE HURRICANE IMPLICATIONS THAT WE HAD, AND THE OVERALL HEAVY WE HAVE, IT WAS A WET YEAR IN TERMS OF UTILITY SERVICE.
UM, YOU KNOW, OUR PERSPECTIVE IS WE'VE GOTTA MEET THOSE DEMANDS OF REALLY TRYING TO RESTORE AND BE REACTIVE TO THOSE, TO THOSE, UM, NEEDS WHEN PEOPLE DO GO DOWN.
BUT I DID WANNA HIGHLIGHT THIS IS KIND OF HOW THE DAMAGE LOOKED TO US, UM, IN THE FEBRUARY PERIOD.
AND IF YOU GO FORWARD, YOU PROBABLY HAVE SEEN THIS BEFORE, AND PROBABLY EVEN FOR ME, BUT, BUT THIS REALLY HIT HOME BECAUSE WE DON'T NORMALLY HAVE TRANSMISSION LINE DAMAGE.
AND TO HAVE YOUR TRANSMISSION POLE REALLY, YOU KNOW, CONVERTED TO A U-SHAPE, REALLY, REALLY GOT US.
NOW I GOT QUESTIONS LIKE, CAN'T YOU, CAN'T YOU USE, UM, MORE STURDY, UH, MATERIALS SO THAT THEY WON'T BEND? UM, WE'VE, YOU KNOW, WE'VE BEEN IN SEARCH, UM, BASICALLY ACROSS THE NATION FOR THAT STEEL.
AND, UM, IT JUST KIND OF SHOWS YOU THE POWER OF MOTHER NATURE REALLY, UH, NO MATTER WHAT YOU DO.
SO, UM, WE WILL CONTINUE TO KEEP TRYING TO HARDENING THE SYSTEM, BUT THAT, THAT, THOSE ARE THE IMPLICATIONS THAT WE HAVE.
PUBLIC ART, IT'S PUBLIC ART
UH, THIS CHART THOUGH, SHOWS, UH, KIND OF HOW WE HANDLE IT.
I MEAN, WE PROBABLY HAD ABOUT 160,000, UH, CUSTOMERS THAT HAD SOME IMPACT AS MUCH AS A FLASH, YOU KNOW, A BLINK, UM, THAT WAS MUCH HIGHER.
BUT THOSE, THE 80 THOU, 80,000, 84,000, UH, CUSTOMERS HAD, UH, A SUSTAINED OUTAGE.
AND SO THAT'S, THAT WAS WHAT IT LOOKED LIKE AT THE PEAK.
AND THAT, THAT LINE REALLY SHOWS HOW OUR FIELD EMPLOYEES AND LEADERS IN THE OPERATION AREAS AND SAFETY AND EVERYWHERE ACROSS THE, THE, UM, ORGANIZATION REALLY CAME TO MOBILIZE TO MAKE SURE WE FOCUSED, WE WERE ABLE TO GET EVERYBODY UP WHO COULD COME BACK UP, UM, IN ABOUT 51 HOURS OF THAT DEVASTATION.
AND, UM, YOU KNOW, WE STAY SHARP BECAUSE THAT'S KIND OF OUR BUSINESS, AND WE GOTTA, WE GOTTA RESPOND TO THAT WHENEVER IT OCCURS.
I WOULD SAY, AS I SAID IN, IN AUGUST, UM, WE PREPARED FOR THE WORST AND, UH, HOPE FOR THE BEST.
AND, UH, WE WERE BEYOND PLEASED ABOUT THE LEVEL OF COMMITMENT ACROSS THE CITY, FROM THE MAYOR TO THE JUDGE, TO ALL OF YOU, UM, SUPPORTING THE THINGS THAT WE NEED TO DO TO MAKE SURE THAT PEOPLE WERE AWARE.
UM, ONE OF THE OTHER THINGS WE ALWAYS HAVE TO WORRY ABOUT IS WHEN THOSE LINES GO DOWN, THOSE LINES ARE HOT AND WE REALLY, REALLY WORRY ABOUT PEOPLE GETTING CLOSE TO IT.
AND SO THE EFFORT THAT WE SAW IN THE, IN THE COMMUNITY WAS VERY, VERY ENCOURAGING TO US AND REALLY GOT OUR EMPLOYEES EVEN MORE MOTIVATED TO WORK DILIGENTLY LONG HOURS TO MAKE SURE THAT THAT WORKED.
AND YOU, AND THE COMMIT, THE COMMUNITY WILL ALWAYS HAVE OUR COMMITMENT FOR THAT.
UM, THE, SO WHEN WE GOT TO THE SITUATION WHERE OUR COMMUNITY WAS FINE, UM, WE GOT MULTIPLE ASKS TO COME AND REALLY TRY TO HELP OTHER COMMUNITIES.
AND I'LL SHOW YOU, WE HIT ABOUT SIX, UH, COMMUNITIES.
AND, AND THAT WAS, UM, INTERESTING.
I ALWAYS LIKE TO SHOW THE, THE PICTURE ON THE, MY RIGHT HAND SIDE BECAUSE, UM, THIS WAS, UH, THE, THE LOWER KEY KEY WEST AREA, THEIR DISTRIBUTION SYSTEM, UM, LINE AFTER LINE AFTER LINE WAS JUST DOWN.
AND SO WE ACTUALLY HAD TO RERA POLES, RESR LINES AND RECONNECTED TO THEIR GENERATION SOURCE.
BUT TO HAVE A, YOU KNOW, A WILD DEER COME UP IN, IN TO ONE OF OUR LEADERS AND LET THEM FEED THEM WITH WATER REALLY KIND OF SHOWS THE DEVASTATION THAT WAS HAPPENING IN THE AREA.
AND OUR PEOPLE JUST DEAL WITH THAT OVER AND OVER AND OVER AGAIN, TRYING TO HELP PEOPLE HAVE THE SAME QUALITY OF LIFE THAT WE ENJOY HERE.
AND, AND AGAIN, IT MAKES OUR PEOPLE EXTREMELY PROUD WHEN THEY CAN GO.
SO THIS IS, UH, JUST A GENERAL, UM, MAP OF, UH, WHAT WE HAD.
AND THE ONE I'D HIGHLIGHT, I THINK IS ROCKPORT.
THAT WAS SOMETHING THAT WAS DIFFERENT.
WE JOINED THE CITY'S EFFORTS THROUGH CHERYL'S LEADERSHIP ON AN E I T, UM, RESTORATION EFFORT, BECAUSE THERE'S ONE THING TO BRING POWER UP, BUT IF YOU HAVE POWER UP AND YOU HAVE NO SYSTEMS, BECAUSE EVERYTHING'S BEEN BEEN BLOWN AWAY, UM, DOESN'T MATTER.
SO WE HELPED, UM, WE SENT OUR, OUR MOBILE SUPPORT UNIT DOWN TO THAT LOCATION.
OUR PEOPLE SLEPT IN THAT, THAT UNIT, UM, FOR SEVERAL NIGHTS WHILE THEY SAT THERE AND, AND, UH, SUPPLIED SUPPORT TO THE, TO THE COMMUNITY.
SO, SO, UM, THE, UM, GO BACK ONE, I GOTTA, I GOTTA PUT MYSELF ON THE
[00:30:01]
SHORT ON THE NEXT ONE, BUT, UM, SO THE, THE THING I WOULD HIGHLIGHT, WE ARE, WE ARE CURRENTLY STILL TRYING TO FIGURE OUT HOW WE CAN HELP PUERTO RICO.UM, IT IS A MUCH MORE CHALLENGING EFFORT TO DO IT.
UH, MOSTLY IT'S OFF CONTINENT.
UM, THERE'S NO COVERAGE FOR US TO SHIP, UH, EQUIPMENT AND TRUCKS.
UM, HOW WE GET THEM OVER THERE IN TERMS OF, WHETHER IT'S BY BARGES OR AIRCRAFT CARRIERS OR ALL OF THOSE OTHER THINGS, THE LOGISTICS JUST TO GET THERE ARE DIFFICULT.
UM, AND THEN ONCE WE GET ON THE GROUND, THERE'S BEEN A LOT OF CHALLENGE WITH TRYING TO GET MOBILIZED ENOUGH TO BE HELPFUL.
WE, WE DID SEND A SCOUTING CREW DOWN THERE, UH, SEVERAL WEEKS AGO TO SEE WHAT, WHAT COULD HAPPEN.
WE COULD NOT FIND A SITUATION WHERE THEY WOULD HAVE SUSTAINED PLACE TO SLEEP IN BETWEEN THEIR MAINTENANCE ACTIVITIES OR WHETHER THEY COULD REALLY BE ASSURED THAT THEY WOULD HAVE REASONABLE RATIONS AND THINGS LIKE THAT.
UM, WE ARE NOT DONE TRYING TO BE HELPFUL.
WE THINK THAT THERE IS INCREASED LEVEL OF STABILITY COMING.
UM, SO, AND IN THE MINIMUM WE ARE STAYING IN CONTACT WITH THEM.
WE ARE STAYING IN CONTACT WITH THE A P P A AND THE L P P C, AND I'D LIKE TO HIGHLIGHT THAT CHRIS TER, OUR CHIEF OPERATING OFFICER RECENTLY WAS ASKED TO JOIN AN ADVISORY COMMITTEE POSITION ON THE TECHNICAL STRATEGIC POTENTIAL TO RESTORE PUERTO RICO IN A MUCH MORE, UH, SUSTAINABLE WAY.
HOW COULD THEY BETTER USE, UM, AND MOVE THEIR TECHNOLOGIES FORWARD, CHANGE THEIR ARCHITECTURE, AND DO SOMETHING DIFFERENT THAT WOULD BE, UM, A MORE HARDENED SYSTEM, LESS SUBJECT TO, UM, THIS TYPE OF DESTRUCTION, THOSE KINDS OF THINGS.
SO CHRIS WILL BE STARTING THAT, UM, SOON, AND WE'D BE GLAD TO COME BACK AND GIVE YOU UPDATES ALONG THE WAY ABOUT OUR ABILITY TO BE HELPFUL.
SO HERE'S THE CHALLENGE WITH THE AIRPORT.
UM, FOR, FOR US, UH, WE'VE HAD THAT INFRASTRUCTURE FOR, FOR QUITE SOME WHILE, AND THE, OF COURSE, THE GROWTH IN THE INNER CITY AND AROUND THE AIRPORT IS, IS GREAT.
THERE'S A LOT MORE BUSINESSES AND HOMES, WHICH IS WONDERFUL.
BUT WE ARE FINDING THAT OUR INFRASTRUCTURE IS, IS STRESSED TO THE MAX.
AND WHAT THE IMPLICATION IS TO THE SYSTEM AT THE AIRPORT, REALLY WHAT HAPPENS IS PRIMARILY THE SECONDARY SYSTEMS, UM, LIKE THE, THE, BUT THE BAGGAGE HANDLING HAVE BEEN, UM, REPEATEDLY IMPACTED BY BLINKS ON THE SYSTEM.
AND, YOU KNOW, WHEN WE SEE 'EM, THEY LOOK LIKE FRACTIONS OF A SECOND, BUT WHEN THE AIRPORT SEES THEM, IT TAKES ABOUT A MINIMUM OF 20 MINUTES TO RESTART THOSE SYSTEMS. AND SO WE DO RECOGNIZE THAT THERE ARE SOME THINGS THAT WE CAN DO, AND WE HAVE BEEN TALKING TO CHERYL, WE ARE GOING TO COME FORWARD AND TALK TO THE MAYOR AND THE TASK FORCE THAT HE'S ERECTED AROUND, UM, THE AIRPORT TO REALLY KIND OF GET SOME IDEAS ABOUT WHAT WE'RE PROPOSING.
UM, BUT OUR, OUR OVERALL PERSPECTIVE IS WE BELIEVE THAT WE SHOULD CREATE SOME ADDITIONAL SUBSTATION REDUNDANCY.
WE HAVE ONE PRIMARY, WE WANNA DO SOME, SOME WORK, SOME UNDERGROUND WORK, UM, AND BASICALLY UPGRADE THE SUBSTATION.
AND THEN WE'RE GONNA WORK WITH CHERYL RELATIVE TO A, UM, U P S SYSTEM BACKUP SYSTEM THAT WOULD HELP MINIMIZE ANY, YOU KNOW, BLIPS THAT HAPPENED IN THE FUTURE.
SO, UM, THE INTERESTING THING, SORT OF, WE GOTTA FINALIZE THAT AND IT'LL TAKE A WHILE AND WE'LL COME BACK WITH A SCHEDULE TO UPDATE THAT, BUT WE DO UNDERSTAND THE IMPORTANCE OF THE AIRPORT.
WE DO HAVE A COMMITMENT AND WE WILL COME FORWARD WITH THAT.
AND WE'RE, WE'RE LOOKING AT ALL ACROSS THE CITY THINGS THAT WE NEED TO DO.
AND WE, WE DO A TREMENDOUS AMOUNT OF MAINTENANCE, BUT WE ALSO KNOW THERE ARE HIGH PROFILE AREAS OR NEIGHBORHOODS THAT GET, THAT GET CERTAIN, UM, INFRASTRUCTURE ISSUES THAT WE NEED TO KEEP WORKING ON WHAT WE CAN DO.
AND IT'S JUST A MATTER OF IDENTIFYING THEM AND FOCUSING.
WE HAD ONE AREA NOT TOO LONG AGO, I THINK, ON THE BRONZE STATION AREA, AND WHAT THAT WAS IS WE HAD DONE WHAT WE CALL A A LOT OF DIRECT BERRY IN THE AREA OF OUR CABLING.
AND, YOU KNOW, THE GREAT THING ABOUT OUR, OUR GROUND HERE IS IT'S HARD AND STABLE, BUT IT ALSO CREATES FRACTURES, UM, IN OUR, OUR UNDERGROUND INFRASTRUCTURE.
SO UNDERGROUNDING SOMETIMES HAS A COMPLEXITY OF LOOKING GREAT, BUT WE CAN ACTUALLY END UP WITH MORE COMPLEX ISSUES WHEN WE WANNA TO UPGRADE THEM AND DEAL WITH THEM AND, AND GO FORWARD.
WE HAVE FIXED THAT AREA IN BRONZE STATION, WE'RE ON OUR WAY TO WORK ON THE AIRPORT, AND THAT'S OUR COMMITMENT TO, TO KEEP WORKING ON THOSE THINGS AND KEEP YOU APPRISED.
UM, RESILIENCE, UM, YOU KNOW, I WAS, UH, RESILIENCE IS A VERY, UM, GETTING TO BE A VERY BROAD TERM, AND A LOT OF PEOPLE TALK ABOUT IT.
WHEN I WAS AT, UH, RANDOLPH YESTERDAY, THEY USE RESILIENCE RELATIVE TO THE, UH, RELIGIOUS AND CHAPLAIN SERVICES.
SO I, I, I THOUGHT THAT WAS INTERESTING FROM THE ENERGY PERSPECTIVE, BUT I GET IT.
PEOPLE ARE TRYING TO FIND REALLY WAYS TO BE, UH, SELF-SUFFICIENT AND BE ABLE TO RESTORE QUICKLY.
BUT I WOULD LIKE TO TALK TO YOU ABOUT THE THINGS THAT WE THINK IN TERMS OF RESILIENCE AT A MINIMUM.
[00:35:01]
THAT, UM, CREATING MICROGRIDS WHERE WE CAN AND OUR MOST CRITICAL INFRASTRUCTURE IS IMPORTANT.WHAT A MICROGRID IS, IT HAS THE ABILITY TO ACTUALLY HAVE, UM, A, A BACKUP SYSTEM BEHIND IT, AND IT HAS SOME KIND OF RENEWABLE ENERGY SOURCE WITH THAT BACKUP SYSTEM.
SO SOME PEOPLE HAVE, SOME CUSTOMERS HAVE SOME DIESEL UNITS.
WE DON'T REALLY PREFER DIESEL BECAUSE OF ITS EMISSIONS, UM, UH, ASPECTS.
SOME HAVE GAS UNITS, WHICH ARE BETTER.
UM, WE THINK ULTIMATELY SOME OF THE BEST UNITS WILL BE THOSE THAT ARE, UM, LIKE A SOLAR SYSTEM WITH AN ENERGY STORAGE BACKUP.
UM, WE DID DO A SMALL PROJECT ON, UH, FORT SAM HOUSTON, UH, A SMALL PROJECT.
THEY ASKED US TO DO SOMETHING THAT DIDN'T HAVE ANY RISKS TO IT, SO WE PUT A MICROGRID ON THE LIBRARY, UM, AND IT'S WORKING GREAT
AND SO WE'RE ALREADY EXPERIMENTING WITH THEM GETTING EXPERIENCE AND MOVING FORWARD, AND THAT PROVIDES A GOOD LEVEL OF, UM, RESILIENCE.
UM, SO GRID X ACTUALLY, UH, IS A, IS ANOTHER THING A BIT ABOUT RESILIENCE.
GRID X IS A EVERY OTHER YEAR EXERCISE.
THIS WAS THE FOURTH ONE WHERE THE, UH, UM, NERC AS, AS AN ORGANIZATION ORGANIZES A TWO DAY EVENT WHERE THEY ASK COMMUNITIES, UTILITIES IN PARTICULAR, PARTICULAR TO SIMULATE, UH, LIKE A MASS DRILL OF MANY, MANY OCCURRENCES.
AND THEY ARE, THEY WILL SAY, THEY WILL GIVE YOU A, UM, DESKTOP EXERCISE FROM ANYTHING, FROM A CYBER ATTACK TO A BOMB, TO A STORM, TO ALL OF THESE THINGS.
AND THEY GIVE IT TO YOU ALL AT ONCE.
AND WHAT, UH, ORGANIZATION DOES IS IT TESTS ITS ABILITY TO RESPOND.
DOES IT KNOW HOW THE RIGHT HIERARCHY, DOES IT HAVE A BACKUP PLAN? WHO STEPS INTO WHOSE ROLE? SOMETIMES YOU PULL PEOPLE OUT OF IT JUST TO SEE WHAT, WHAT THE ORGANIZATION WILL DO.
SO YOU'RE REALLY TESTING THE HUMAN CAPITAL THAT YOU HAVE AROUND YOUR, UM, PROCESS AND PROGRAMS. WE WERE REALLY EXCITED ABOUT THIS ONE.
THE CITY PARTICIPATED WITH US, THE F B I PARTICIPATED.
COMPANIES LIKE U S A A, WE WERE ABLE ALL IN LATA TO BRING PEOPLE TOGETHER TO MAKE SURE THAT WE COULD REALLY THINK ABOUT IT AND CHALLENGE THE, THE WAY THAT WE THINK AND THE WAY THAT WE THINK ABOUT BUSINESS CONTINUITY.
AND SO THE PROGRAM HAS GONE VERY WELL FOR THIS YEAR.
WE, WE STEPPED THAT UP, GOOD RESULTS, WE'RE GONNA IMPROVE OUR PROCESSES FROM IT, AND WE WILL CONTINUE TO, TO PARTICIPATE IN PROGRAMS LIKE THAT TO TEST OUR RESILIENCY AND OUR THINKING.
UM, AND THEN, UM, ADDITIONALLY, UH, WHY THAT'S AN EXERCISE.
WE HAVE TO CONSTANTLY THINK ABOUT THE RESILIENCE OF OUR SYSTEMS IN TERMS OF CYBER AND PHYSICAL, UM, INTEGRATED SECURITY THREATS.
AND SO WE, WE THINK ABOUT IT ALL THE TIME.
AS I SAID BEFORE, WE'RE UPPING THE FOCUS ON SECURITY OVERALL.
AND WE'RE ULTIMATELY TRYING TO MAKE SURE THAT WE HAVE ENOUGH TALENT, RESOURCES, AND CONNECTIONS TO SOLVE ISSUES BOTH PROACTIVELY AND REACTIVELY.
AND SO OUR, UH, SENIOR DIRECTOR, I MEAN SENIOR CHIEF, SENIOR, UH, PERSON OVER SAFETY AND SECURITY, WE'VE FLIPPED THAT AND NOW IT'S SECURITY AND SAFETY.
UM, I, I TALK ABOUT THIS SOMETIMES.
THERE WAS A STORY RUN NOT TOO LONG AGO.
WE GET OVER 90,000 HITS, UH, PEOPLE TRYING TO GET IN OUR SYSTEM A DAY.
AND, UH, I OFTEN SAY THAT PEOPLE THINK THAT UTILITIES ARE LIKE RUBIK'S CUBES.
IT'S HARD TO GET IN, BUT THEY, THEY SEE THE BENEFITS OF BEING ABLE TO MANIPULATE THAT.
AND WE SPEND A TREMENDOUS AMOUNT OF TIME, TIME DEFENDING OURSELF FROM THAT AND FIGURING OUT WHAT WE DO.
IF THERE WAS A THREAT, HOW COULD WE EXERCISE IT OUT OF OUR SYSTEM AND MOVE FORWARD? UM, HAVE WE HAD LITTLE INFRACTIONS HERE AND THERE? HAVE WE BEEN ABLE TO RESPOND TO ATTACKS? YES, WE HAVE NOT HAD ANYTHING MAJOR, UM, BUT WE HAVE HAD, YOU KNOW, LITTLE INFECTIONS, PEOPLE CLICKING ON, UM, CLICKING ON FILES, AND WE QUICKLY, WE CAN QUICKLY IDENTIFY THAT, ISOLATE IT AND EXTRACT IT OUTTA THE SYSTEM.
IT TAKES A TREMENDOUS AMOUNT OF TIME, AND PEOPLE ARE ALWAYS THINKING ABOUT WAYS TO GET TO US IN OUR SYSTEMS. SO WE INCREASINGLY, INCREASINGLY, INCREASINGLY SPEND TIME ON THAT.
UM, SO WE HAVE A PERSON WHO'S OVER SECURITY AND SAFETY.
WE HAVE ALSO A CHIEF UNDERNEATH THEM.
WE HAVE, UM, SEVERAL DIRECTORS THAT, THAT WORK ON IT.
UM, INCREASINGLY, IT'S NOT THE BIGGEST AREA OF OUR COMPANY, BUT IT IS A VERY INTENSE AREA.
AND, AND THAT GROUP WORKS, UM, VERY INTENSELY WITH OUR C I O AND THAT TEAM, AGAIN, TO MAKE SURE THAT ALL OF OUR SYSTEMS ARE PROTECTED.
UM, I THINK THE BENEFIT, UM, OUR TEAM IS ALSO ULTIMATELY WORKING WITH THE CITY OF SAN ANTONIO SO WE CAN CREATE A BETTER CONNECTION AGAIN BETWEEN US AND OUR OWNER, UM, SO THAT WE CAN THINK ABOUT THINGS IN TERMS OF SHARING INFORMATION WITH US.
AND THE F B I, THIS INTEGRATION OF INFORMATION SHARING, WE BELIEVE IS A KEY TO BEING RESILIENT.
UM, AND SO THE, THE LAST THING I'LL TALK ABOUT HERE IS RE RESILIENCY IS USING SYSTEMS AND INFORMATION THAT WE HAVE AND TRYING TO CREATE ALGORITHMS AND TRYING TO MOVE
[00:40:01]
INTO DATA, WHAT WE CALL DATA OPTIMIZATION, TO MAKE SURE THAT OUR ORGANIZATION CAN GET INTO A LEARNING MODE WITH DATA AND TRYING TO FIND DEFENSES AND, AND DIFFERENT WAYS FOR US TO OPTIMIZE OUR SYSTEMS. UM, THE, THE ONE THING I'LL SAY, HERE'S, HERE'S THE COMPLEXITY REALLY AROUND, UM, SMART CITY.THE THING ABOUT IT IS WE'RE GONNA ADD A WHOLE LOT MORE CONNECTIONS ON IT.
WE'RE GONNA PUT SENSORS, WE'RE GONNA IMPROVE THE LIGHTING, WE'RE GONNA MAKE SURE IT'S RESPONSIVE, UH, TO THE WAY PEOPLE WANNA LIVE.
AT THE SAME TIME, EVERY TIME YOU PUT SOMETHING AND YOU CONNECT IT TO A SYSTEM, YOU HAVE TO THINK ABOUT WHETHER OR NOT YOU NEED TO ISOLATE YOUR MOST CRITICAL, FROM YOUR MOST ROBUST, BECAUSE EVERY TIME YOU HAVE AN ENTRY POINT, THAT'S AN ENTRY POINT WHERE SOMEBODY CAN GET IN.
AND SO IT'S A VERY COMPLICATED PROCESS, AND WE CONTINUE TO THINK ABOUT ARCHITECTURE AND STRATEGY AND, AND DEFENSE MECHANISMS AROUND THAT.
BUT WE ULTIMATELY KNOW THAT WE GOTTA USE THAT DATA, WE GOTTA MEET THE NEEDS OF CUSTOMERS, BUT WE'VE GOTTA PROTECT THEIR DATA AND PROTECT THIS BUSINESS AND PROTECT THE ASSET THAT BELONGS TO THIS COMMUNITY.
SO THAT'S WHAT WE'RE GONNA FOCUS ON.
WHAT HAPPENED? THAT WAS MY TIME.
HOW DID YOU DO THAT? THAT WAS LIKE MAGIC
ANY QUESTIONS FOR ME? THANK YOU.
I, I, I REALLY, I, THIS IS A VERY THOROUGH PRESENTATION.
UM, THE FACT THAT YOU'RE SPENDING THIS MUCH TIME THINKING SMART, THE RESILIENCE IS VERY REFRESHING TO ME, CONSIDERING YOU AND I HAVE TALKED ABOUT IT, YOU KNOW, AT LENGTH.
AND, AND WHEN I TALK TO YOU, I GET, I I, IT'S CRYSTAL CLEAR TO ME THAT YOU GET IT.
UM, AND I, I REALLY DO THINK THAT C P S IS A THOUGHT LEADER IN THIS FIELD, RIGHT? UM, WITH REGARDS TO THE DATA, THAT'S LIKE A BIG DATA LAKE THAT YOU GUYS HAVE, RIGHT? YES.
AND WELL, YOU CERTAINLY HAVE TO THINK ABOUT DATA SECURITY AND ALL THAT.
THAT INFORMATION IS LIKE A GOLDMINE AS FAR AS BEING ABLE TO MINE IT, RIGHT? AND SO I'VE, YOU KNOW, I WAS DOING READING AND, YOU KNOW, THE S CENTER FOR MEDICARE AND MEDICAID SERVICES HAS SOMETHING LIKE 2.4 BILLION DOCUMENTS A YEAR, RIGHT? THAT IT HAS TO MANAGE, BUT THE SHEER DATA IS SO RICH THAT PEOPLE ARE HUNGRY TO DIVE INTO IT TO LEARN.
SO TO WHAT EXTENT IS THERE AN APPETITE OVER AT SAW AT C P S FOR CREATING OPEN DATA SOURCES FOR PEOPLE TO LEARN, RIGHT? AND TO INNOVATE ON THEIR OWN, UM, SOLUTIONS AROUND DATA THAT YOU MAY BE HOLDING.
THERE IS A TREMENDOUS AMOUNT OF, UH, APPETITE, BUT WE, WE'VE THOUGHT ABOUT THIS QUITE A BIT, AND WE'LL CONTINUE TO THINK ABOUT IT.
UM, WE'VE GOTTA DO A LOT OF DATA CLEANSING TO MAKE SURE THAT THE DATA THAT IS OUT THERE IS RICH IN TERMS OF INFORMATION, BUT NOT RICH IN TERMS OF PERSONAL IDENTIFICATION INFORMATION.
BUT WE KNOW THAT THERE, THAT IT WOULD BE EXTREMELY HELPFUL IF WE WERE ABLE TO DO THAT.
AND SO THE, UH, CHERYL JUST HAD A SESSION HERE THIS WEEK WHERE SHE INVITED ALL OF THE AGENCIES TO PARTICIPATE IN HER PROGRAM.
AND ONE OF THE ANCHOR POINTS, WHICH WAS EXACTLY RIGHT, IS WE ARE THINKING ABOUT HOW DO WE POPULATE A GENERAL POOL OF INFORMATION FROM EVERY AGENCY IN A REPOSITORY THAT DOESN'T ALLOW BACK CAST POTENTIAL INFECTION BACK INTO OUR AREA, BUT DOES ALLOW US TO SEND GOOD INFORMATION THAT IS HELPFUL.
AND, AND, AND AGAIN, IT IS STRIPPED OF PERSONAL IDENTIFICATION INFORMATION.
NOW, I, I WILL SAY THIS FOR CLARITY.
WE ALSO UNDERSTAND, AND WE WILL NOT BE SELLING OUR DATA TO ANYONE, UM, EVEN THOUGH IT'S RICH AND IT'S VALUABLE, AND ALL OF THOSE THINGS, THESE ARE OUR CUSTOMER'S BITS OF INFORMATION.
IT'S, IT DOESN'T HAVE MEDICAL INFORMATION IN IT.
IT'S GOT, IT'S GOT, IT'S GOT THEIR, THEIR, THEIR PHONE AND ADDRESS AND, AND OTHER IDENTIFICATION, UM, ITEMS TO IT.
BUT WE BELIEVE THAT PEOPLE BELIEVE THAT THEIR INFORMATION NEEDS TO BE SECURE.
AND SO, UH, WE WON'T BE SENDING, SELLING IT TO ANY SERVICES.
WE WILL, HOWEVER, WORK WITH OUR PARTNERS AND BUSINESSES THAT WE CAN WORK ON AN OPT-IN STRATEGY, MEANING THAT IF THERE'S A CUSTOMER OUT THERE THAT'S WORKING WITH THE BUSINESS THAT, AND THEY, THEY'RE THE, THE BUSINESS IS OFFERING ANOTHER SERVICE THAT CAN BE ADDED AND USEFUL OFF OF OUR DATA.
IF THE CUSTOMER UNDERSTANDS WHAT THE ASK IS AND THEY OPT INTO THE PROGRAM AND THEY SAY, YES, MY INFORMATION CAN BE SHARED, THAT IS SOMETHING THAT WE WOULD BE WILLING TO DO.
WE HAVEN'T DONE ANY OF THAT YET.
WE WOULD WORK ON THAT PROGRAM AND MAKE SURE IT'S DISCLOSED, MAKE SURE THAT WE HAVE THE RIGHT, UM, WORDING.
AND SO PEOPLE UNDERSTOOD THE IMPLICATION, BUT WE ULTIMATELY UNDERSTAND THAT THERE IS A LOT OF POWER IN THE DATA THAT WE HAVE.
AND THEN SHIFTING OVER TO THE CREDIT RATING, I KNOW THIS DOUBLE A PLUS, IS THAT RIGHT? MM-HMM.
[00:45:01]
WHAT DO I TELL MY CONSTITUENTS WHEN THEY SAY, YEAH, SO WHAT, LIKE, I DON'T GET, LIKE, WHAT DOES THAT MEAN TO ME AS A RATE PAYER? 'CAUSE WHAT I'VE BEEN TELLING THEM IS, WELL, IT MEANS THAT, YOU KNOW, WHOEVER'S TELLING YOU THAT C P S IS FAT AND YOU KNOW, TOO TOP HEAVY AND YOU KNOW, NOT EFFICIENT AND NOT FINANCIALLY SOUND, THAT SCORE IS EVIDENCE THAT WHOEVER'S TELLING YOU THAT IS MISINFORMED OR TRYING TO MISINFORM YOU, IS THAT THE RIGHT ANSWER? THAT IS PART OF THE RIGHT ANSWER.AND IT, AND IT IS KEY THAT, I MEAN, THEY, THEY, WE GET ANALYZED SO INTENSELY AND CHALLENGED IN TERMS OF, AGAIN, EVERYTHING OUR MANAGEMENT THINKING ARE OUR LOOK GOING FORWARD, HOW WE HAVE ENTERED INTO DIFFERENT AGREEMENTS.
THOSE, ALL THOSE THINGS ARE ANALYZED AND WE ARE PEER BENCHED A AGAINST, UM, EVERY OTHER UTILITY IN ONE WAY OR ANOTHER.
SO IT DOES TALK ABOUT THE MANAGEMENT STRENGTH AND KNOWLEDGE, BUT IT ALSO SAYS IS THAT CREDIT RATING IN TURN ALLOWS US TO ACCESS THE BEST FINANCING POSSIBLE TO LOWER THE COST STRUCTURE.
SO IN OTHER WORDS, IF I WAS, IF WE WERE A HIGH CREDIT RISK COMPANY AND WE DIDN'T HAVE STRONG RATINGS, THE COST OF DEBT TO DO SMART CITY OR SOME OTHER RENEWABLE PROJECT THAT WE WANTED TO OWN WOULD BE VERY EXPENSIVE AND DRIVE A MUCH HIGHER COST BASE ON THE ASSETS THAT THIS COMMUNITY, UM, HAS.
SO OUR CREDIT RATING ACTUALLY HELPS EVERY CUSTOMER SAVE MONEY.
AND THEN THE THIRD QUESTION, AND LAST ONE, MAYOR, WHEN ARE YOU GONNA BE AAA
I'M TRYING, BUT, UH, I HAVE BEEN TOLD AND ADVISED THAT IT'S NOT HAPPENING ANYTIME SOON.
BUT AGAIN, WE GO UP EVERY YEAR, WE TALK ABOUT OUR PROGRAM, WE TALK, WE TALK ABOUT EVERYTHING.
WE ALSO SHARE WITH THEM OUR ASSESSMENT OF OUR RISK PROFILE AND WHO WE ARE AND WHERE OUR RISKS ARE, AND HOW WE MANAGE 'EM AND ALL THOSE THINGS.
I MEAN, WE, WE PUT IT ALL OUT THERE AND WE SAY, YOU KNOW, CAN WE GO NOW? UH, SO WE WON'T STOP ASKING AND IT, BUT BY FAR, IF I EVER GET THAT WORD, I'M COMING OVER HERE FIRST.
COUNCILMAN PLI? COUNCILMAN PERRY, I GOT YOU.
YOU DID SOME OF MY INTEREST THOUGH.
I, IT'S BEEN SUCH A LONG TIME.
I FORGOT TO PRESS THE BUTTON, BUT, UH, YOU DID PIQUE MY INTEREST A LITTLE BIT, YOU SAID, UH, AND IT WAS ABOUT THE UTILITY PRIVATIZATION FOR THE MILITARY AND THEM LOOKING AT THEIR OPERATIONS AND, UM, MOVING AWAY FROM, UH, THOSE ITEMS THAT WERE NOT WITHIN THEIR CORE MISSION.
UH, HAVE YOU DONE THE SAME THING WITHIN C P SS, UH, ALL THE TIME AND WHAT, GIMME SOME EXAMPLES WHERE YOU'VE KIND OF, UH, FOCUSED ON YOUR CORE COMPETENCY OR CORE MISSIONS WHERE, UH, YOU MAY HAVE CONTRACTED OUT CERTAIN PORTIONS OF WHAT YOU DO ON A DAY-TO-DAY BASIS TYPE.
AND THAT'S WHAT I'M LOOKING AT.
WELL, THERE'S, THERE'S TWO THINGS THERE RELATIVE TO CONTRACTING OUT.
WE BELIEVE IN CONTRACTING OUT A CERTAIN LEVEL OF WORK, AND IT ACTUALLY COMES FROM A BROADER VIEW ABOUT, UM, HOW WE EVEN RUN OUR PLANTS.
UM, OUR PERSPECTIVE IS WE HAVE ABOUT 7,000 MEGAWATTS OF CAPACITY, INCLUDING RENEWABLES, UM, IN OUR PORTFOLIO.
UM, BUT OFTENTIMES YOU GOTTA MAINTAIN THOSE, THOSE ASSETS.
SOMETIMES YOU GOTTA BRING 'EM DOWN FOR, UM, HOPEFULLY PLANNED MAINTENANCE, SOMETIMES UNPLANNED MAINTENANCE, DEPENDING ON WHEN YOU HAVE TO DO THAT MAINTENANCE, YOU BRING THAT ACTIVITY DOWN AND, AND, AND FROM THERE, IF WE HAVE MORE DEMAND THAN WE ACTUALLY HAVE THE ABILITY TO GENERATE, WE WILL GO OUT AND BUY THAT EXCESS POWER ON THE MARKET.
OUR CORE BUSINESS IS TO TRY TO GENERATE POWER AND CONTROL IT AS MUCH AS WE CAN.
BUT WE USE THIS, WHAT WE CALL A PEAKING CAPACITY STRATEGY RELATIVE TO OUR, UM, STAFFING.
SO WE HAVE ABOUT 3,100 EMPLOYEES, AND WE'VE BEEN PRETTY STABLE AT THAT LEVEL FOR SEVERAL YEARS NOW.
UM, BUT AT THE SAME TIME, A LOT OF BUSINESS HAS INCREASED IN SAN ANTONIO.
WE BELIEVE THAT WE CAN USE WHAT WE CALL CONTRACTORS FOR PEAKING CAPACITY, BECAUSE A PROJECT WILL START AND STOP, START AND STOP, AND THEN YOU'LL HAVE GAPS IN BETWEEN.
THERE'S NO REASON FOR US TO HIRE, UM, PERMANENT PEOPLE THAT WE CAN'T KEEP BUSY.
WE HAVE ENOUGH STAFF TO KEEP BUSY, AND THEN WE USE CONTRACTORS IN A PEAKING CAPACITY.
SO FROM, FROM THAT ULTIMATELY STANDPOINT, THAT WORKS.
BUT LIKE, UM, EVERY SO OFTEN, UH,
[00:50:01]
RELATIVE TO STAYING IN OUR CORE BUSINESS, I MEAN, SOME OF IT'S REGULATORY, BUT SOME OF IT'S, WE'RE JUST, WE'RE JUST NOT PUT UP FOR THAT.AND SO, SO FOLKS WILL ASK, WELL, WHAT DO YOU, YOU KNOW, WHAT WOULD YOU DO WITH THAT FIBER FOR US? WE, WE ARE NOT IN THE TELEPHONY BUSINESS.
THAT'S, WE'RE NOT CHARTERED FOR THAT.
THAT'S NOT REGULATORY FOR THAT STANDPOINT, BUT WE GET PEOPLE THAT ASK US THAT, UM, ALL THE TIME.
SOME FOLKS HAVE ASKED US, WHY DON'T YOU ACTUALLY TRY TO O OWN YOUR OWN YOUR OWN GAS, UH, RESERVE, UH, CENTERS.
THE CENTERS THEMSELVES, NOT JUST THE FUELING STATIONS, BUT THE CENTERS OR COAL MINES, LIKE MINES.
UM, WE DON'T NEED TO OWN MINES.
AND SO WE DON'T NEED TO BE IN THE BUSINESS.
WHEN YOU, WHEN YOU MOVE INTO LIKE COAL MINES, YOU HAVE ALL THE RISK AND ALL THE OBLIGATION AND ALL THE MOVEMENT.
WE, WE GET THOSE TYPES OF QUESTIONS CONSTANTLY.
UM, SOMETIMES WE THINK ABOUT OUR TRANSMISSION BUSINESS.
SEVERAL YEARS AGO, WE COULD HAVE GOTTEN IN THE TRANSMISSION BUSINESS THERE.
IT WAS BIG WHEN WIND WAS BEING, UH, BUILT OUT IN THE WEST TEXAS.
THERE WERE A LOT OF PEOPLE GOING AFTER THE TRANSMISSION BUSINESS.
IN REALITY, PEOPLE, MUNIS WEREN'T REALLY FAVORED, BUT WE TRIED.
BUT WHEN WE SAW THAT THERE WERE A LOT OF OTHER PEOPLE EATING UP THAT BUSINESS, AND THEN WE REALLY REALIZED THAT WE NEEDED TO FOCUS ON OUR GENERATING PLANTS.
WE NEEDED TO FOCUS ON, UM, OUR ABILITY TO THINK ABOUT THE DISTRIBUTION SIDE OF THE BUSINESS, WHAT'S HAPPENING WITH DISTRIBUTED GEN AND ALL THOSE KINDS OF THINGS.
WE SAID, WE DON'T NEED TO GO OUT THERE AND SPEND A TREMENDOUS AMOUNT, TENS OF MILLIONS OF DOLLARS ON TRANSMISSION AND THE HOPE OF GETTING INTO THAT BUSINESS.
SO, AND I CAN COME BACK AND GIVE YOU MORE EXAMPLES, BUT WE DO CONSTANTLY GET ASKED AND WE GET PROPOSALS AND, BUT WE, WE STAY CORE TO OUR, YOU KNOW, SERVICE OF THE, THE PEOPLE IN THIS COMMUNITY.
SO ABOUT 15% OF OUR EXCESS POWER WE SELL OUT TO THE OPEN MARKET.
UM, BUT, BUT, AND THAT HELPS OPTIMIZE THE PRICES THAT WE HAVE TO GET FROM OUR CUSTOMERS.
SO WE USE IT AS AN OPTIMIZATION TECHNIQUE, BUT NOT AS A DRIVING T OUR, OUR DRIVING TECHNIQUE IS TO SERVE HERE IN THE CITY OF SAN ANTONIO METROPOLITAN AREA.
AND, UM, FOR EXAMPLE, AGAIN, LOOKING AT THE MILITARY, I KNOW THAT THEY'VE, UH, CONTINUED DOWN THAT LINE OF, UH, CONTRACTING OUT NON-CORE SERVICES TO THEIR, THEIR DAY-TO-DAY OPERATIONS.
AND, UH, YEAH, I'D LIKE TO, UH, TALK TO YOU A LITTLE BIT MORE ABOUT THAT WITH, UH, SOME OTHER IDEAS AND OPPORTUNITIES OUT THERE.
I, UM, THE, THE, JUST AS I, I HAD IT ON THE SLIDE, JUST THE INITIAL CURRENT ESTIMATE OF THE VALUE OF THE EXISTING INFRASTRUCTURE IS ABOUT $42 MILLION.
BUT I'LL BE GLAD, I KNOW YOU HAD SOME INTEREST EARLIER IN THE ONE-ON-ONE THAT WE HAVE.
SO I'LL, I CAN SHARE THAT WITH YOU AS WELL AS WHAT WE THINK THAT SERVICE CONTRACT LOOKS LIKE, AS WELL AS SOME OF THE THINGS THAT WE WANNA DO ON SMART CITY WITH CHERYL.
AND THEN ANY OTHER IDEAS, WE'D LIKE TO HAVE THAT, AND, AND WE'LL COME IN AND VISIT WITH YOU.
AND, UH, APPRECIATE YOUR STAFF.
I GOT A TOUR OF THE TUTTLE, UH, COMPLEX OUT THERE.
UH, REALLY APPRECIATE, APPRECIATED THAT OPPORTUNITY.
AND WE WILL TAKE ANYBODY ON ANY TOURS OF OUR FACILITIES ANYTIME.
AND SO WE APPRECIATE YOU'RE, WE'RE LOOKING FORWARD TO MORE.
UM, AND THANK YOU FOR ALL YOU'RE DOING AND YOUR COLLABORATIVE WORK WITH THE CITY.
UH, I PERSONALLY WANNA THANK YOU FOR WORKING WITH US ON THE, THE ROOF PROGRAM AND OFFERING THAT, UM, COOL ROOF REBATE.
UH, WE REALLY WANT TO EXPAND THAT.
SO I, I'D LIKE TO TALK A LITTLE BIT ABOUT THESE KIND OF ISSUES.
'CAUSE UH, FOR EXAMPLE, ON, I GUESS IT'S SLIDE 57, WE TALK ABOUT TECHNOLOGY AND THE, THE ROOF PROGRAM THAT WE'VE DONE, UH, YOU KNOW, REALLY TALKS TO, UH, A MUCH MORE VINTAGE TECHNOLOGY, AND WE CALL IT A PASSIVE TECHNOLOGY.
SO WHAT CAN WE DO AS A CITY AND C P S TO, TO MAKE SURE THAT PEOPLE ARE AWARE OF SOME OF THE, THE THINGS THAT THEY CAN DO, UM, THAT, THAT ARE NOT NECESSARILY RECOGNIZED AS, AS HIGH TECHNOLOGY, BUT, BUT RATHER, UH, HELPFUL IN, IN SOME OF THEIR CONSUMPTION, UH, IN THE UTILITIES.
I, I THINK WE HAVE TO CONTINUE TO TRY TO, TO DO SOME INCREASED OUTREACH.
AND, UM, WE, WE HAVE STEPPED UP OUR, UM, OUR CAMPAIGN TO USE, YOU KNOW, OUR, OUR WEBSITE AND SOCIAL MEDIA AND THOSE TYPES OF THINGS.
WE HAVE TRIED TO DO A WHOLE LOT MORE, UH, WORK WITH, WITH OUR TYPICAL, UM, PRINT MEDIA AND THOSE TYPES OF THINGS.
AND I, AND WE'D LOVE TO SIT DOWN WITH YOU AND THINK ABOUT OTHER WAYS THAT WE CAN DO OUTREACH.
WE DO USE OUR CREW UNIT, AS WE SAID EARLIER.
WE DO, WE DO SEND INFORMATION AND PAMPHLETS, BUT, BUT, BUT OBVIOUSLY THAT'S JUST SOMETHING THAT WE CAN CONTINUE TO
[00:55:01]
INVEST IN MORE.AND IF YOU HAVE ANY IDEAS FOR US, WE'LL, WE'LL SPEND SOME MORE TIME ON ALL OF YOU ABOUT OTHER THINGS WE CAN DO, NEIGHBORHOOD OUTREACH, ALL THAT.
UH, I THINK THAT THAT'S, AS WE'RE SHOWING THIS, THE KIND OF THE SPECTRUM OF TECHNOLOGY, THERE'S, THERE'S SO MUCH AS WE'RE TALKING ABOUT SMART CITIES AND DATA, UH, CERTAINLY WE WANNA, UH, EMBRACE THAT, UH, WHILE BRINGING IN SOME OF THE, THE PASSIVE TECHNOLOGIES THAT I THINK CAN HELP PEOPLE RIGHT AWAY.
AND, UH, WITH, WITH, WITH A COMBINED EFFORT THAT ACTUALLY IS, IS MEANT TO, TO HELP HOMEOWNERS, UH, IN THEIR HOMES AND, AND DEALING WITH, WITH UTILITIES AND UTILITY PRICING.
UH, SO, BUT THANK YOU AGAIN BECAUSE YOU KNOW, YOU, YOU REALLY, UH, ADOPTED THE PROGRAM AS A REBATE, AND IT'S AVAILABLE TO, TO ANYBODY.
SO ANYBODY WHO'S LISTENING TO THIS, YOU KNOW, I, I, HOW, I GUESS THE OTHER QUESTION I WOULD HAVE FOR THAT IS HOW DO WE, HOW CAN WE PLAN ON EXPANDING THIS PROGRAM PROGRAM? YEAH.
YOU KNOW, I HAVE, WE, WE STARTED THIS PROGRAM, UH, WE HAD IT EARLY ON WHEN WE, UH, DID STEP AND REFRESHED IT WITH DISCUSSIONS WITH YOU.
WE'VE PROBABLY HAD LESS THAN 20 PEOPLE SO FAR.
I WOULD GENERALLY THINK AS, AS YOU'RE INDICATING THAT WE'VE JUST GOTTA DO SOME MORE OUTREACH.
ONE OF, I WILL SAY, THOUGH, THAT ONE OF THE THINGS THAT'S INTERESTING IS WE MIGHT'VE HIT, WE MIGHT'VE MISSED A LITTLE BIT OF A WAVE ON THE COOL ROOF, BECAUSE THAT THOSE BIG WAVES OF HAIL DAMAGE REALLY HAD PEOPLE REPLACING THEIR ROOFS JUST BEFORE WE PROBABLY STEPPED UP THE PROGRAM.
AND, AND SO WE PROBABLY MISSED SOME OF THAT CAPACITY.
BUT, BUT A, YOU KNOW, ROOFS ARE AGING ALL THE TIME, AND WE JUST GOTTA REALLY TRY TO CATCH PEOPLE.
SO WE'RE GONNA COMBINE THE OUTREACH EFFORT WITH OUR ABILITY TO GET MORE KNOWLEDGE OUT THERE.
AND, AND THEN, YOU KNOW, AGAIN, LOOK FOR, TAKE ALL SUGGESTIONS.
AND, UH, I THINK WE COULD, WE COULD ALL STEP IT UP AND, AND SEE WHAT WE CAN, HOW WE CAN INCREASE THAT PARTICIPATION.
THERE'S QUITE A LOT OF ROOFS IN OUR CITIES.
SO, UM, SPEAKING OF, OF EDUCATIONAL OPPORTUNITIES, DOES, HOW, HOW DO, HOW DOES C P S, UH, PROVIDE ANY EFFORTS TO INCLUDE ANY VOCATIONAL TRAINING, UH, FOR, FOR SOME OF THE, THE YOUNG STUDENTS HERE IN, IN SAN ANTONIO? SO, UM, BASICALLY WE HAVE AN EDUCATIONAL ALLIANCE STRATEGY, WHICH MEANS THAT WE REALLY TRY TO REACH OUT TO, UM, SCHOOLS AND UNIVERSITIES, JUNIOR COLLEGES, ELEMENTARY SCHOOL, EVERYTHING THAT WE CAN TO REALLY OPTIMIZE THE THINGS THAT THEY'RE MOST INTERESTED, WHILE ALSO TRYING TO GET THEM INTERESTED IN ENERGY AND RENEWABLES AND ALL THOSE THINGS.
SO, UM, ON THE VOCATIONAL SIDE, WE'VE HAD A PARTNERSHIP WITH ALAMO COMMUNITY COLLEGES AND ST.
PHILIP'S FOR QUITE SOME TIME, AND THEY ACTUALLY SUPPORT SEVERAL VOCATIONAL OFFERINGS THAT WILL ALLOW STUDENTS TO COME DIRECTLY INTO COLLEGE, INTO THE PROGRAM, GET CERTIFIED, AND, AND WE THEN WE TAKE ON AS MANY AS WE CAN AS OPERATORS AND, AND OTHER GOOD PROFESSIONS WITHIN OUR ORGANIZATION.
WE ALSO HAVE A SAFE STUDENT PROGRAM.
WE ACTUALLY GO OUTREACH AND TRY TO GET STUDENTS IN HIGH SCHOOL TO COME IN AND START INTERNING WITH US BEFORE THEY GRADUATE FROM HIGH SCHOOL.
TRY TO ENCOURAGE THEM TO GO AFTER THESE TYPES OF CERTIFICATIONS OR THEIR ACTUAL, YOU KNOW, FOUR YEAR DEGREE.
AND I, I LIKE TO TELL PEOPLE OR EXPLAIN THAT SAN ANTONIO IS VERY MUCH LIKE THE CITY AND THE CITY PROPER.
WE ARE, I FEEL LIKE WE'RE A CITY WITHIN A CITY, SO WE HAVE A WIDE RANGE OF CAREERS AT C P S ENERGY.
WE DO HAVE A LOT OF FIELD AND OPERATIONAL, UM, POSITIONS, BUT WE HAVE NURSES BECAUSE WE HAVE TO HAVE THAT LEVEL OF CARE FOR, FOR OUR PEOPLE SINCE THEY'RE ALWAYS WORKING, YOU KNOW, WITH, UM, TECHNICAL EQUIPMENT AND THINGS THAT ARE AT RISK.
BUT WE HAVE NURSES, WE HAVE ATTORNEYS, WE HAVE, UM, UH, ENVIRONMENTALIST, UH, ENGINEERS, ALL TYPES OF ENGINEERS, ANALYSTS, UM, PUBLIC AFFAIRS PEOPLE.
I MEAN, SO WE REALLY WILL TAKE ANY STUDENT THAT WANTS TO LEARN ANYTHING AND GET EXPOSED TO IT, ENCOURAGE, WE EVEN HAVE STUDENTS THAT ARE COMING INTO OUR FLEET PROGRAM.
WE HAD AN EXTREMELY SUCCESSFUL, UM, ENTRY INTO FLEET PROGRAM THE FIRST YEAR WE DID IT, UH, ABOUT TWO YEARS AGO.
WE HAD TWO YOUNG LADIES THAT WORKED DIRECTLY WITH OUR FLEET TEAM AND, UM, OUR FLEET, UH, MECHANICS, WHICH WE, WE HAVE ONE OF THE TOP 50 FLEETS IN THE NATION, UM, ULTIMATELY DID A GREAT JOB.
AND SO WE LIKE TO ENCOURAGE YOUNG WOMEN TO GO INTO ANY FIELD THAT THEY WANT TO INSIDE OF THE, THE ENERGY INDUSTRY AS WELL.
SO WE, I'D BE GLAD TO COME BACK AND TALK TO YOU MORE ABOUT THAT LEVEL OF OUTREACH AND, AND, UM, I'LL, I'LL JUST, UH, END WITH, WE HAVE INTERNSHIPS.
UM, WE EVEN DO, UM, SHADOWING PROGRAMS NOW AND OTHER WAYS THAT WE CAN BE SUPPORTIVE TO, TO HELP KIDS STAY IN SCHOOL, WHICH IS REALLY IMPORTANT FOR US.
THAT, THAT'S, THAT'S REALLY INCREDIBLE.
AND LASTLY, I WOULD JUST WANNA COMMEND THE C R U TEAM, UH, FOR THEIR
[01:00:01]
EFFORTS TO CONNECT WITH THE COMMUNITY.UM, SPEAKING OF ON, ON THE AFFORDABILITY, ENROLLMENT, HOW CAN WE EXPAND THAT? UM, WELL, THAT IS INTERESTING.
WE HAVE A GOOD LEVEL OF, OF PEOPLE IN THE PROGRAM.
UM, IF YOU TELL US WHAT ELSE YOU THINK WE SHOULD BE DOING, AGAIN, WE HAVE PEOPLE THAT, THAT WE CAN MOVE INTO THOSE ROLES AND HELP HANDLE ANY ASPECT OF THAT.
THEY'RE TYPICALLY OUR EXPERIENCE, WE DON'T CONTRACT THAT OUT BECAUSE WE WANNA MAKE SURE IT'S TALKING ABOUT BEING IN OUR CORE BUSINESS, UM, SO WE CAN EXPAND IT BASED UPON INCREASED NEED THAT WE SEE IN THE COMMUNITY.
IF YOU POINT SOME THINGS OUT TO US, WE WILL WORK ON THAT.
UH, I WAS IN LISTENING TO, UH, YOUR DISCUSSION ABOUT THE AAA RATINGS.
I I WAS TRYING TO THINK, HOW CAN WE EXPLAIN THIS TO PEOPLE IN OUR COMMUNITY? AND SO I WOULD LIKE TO FIND OUT IF YOUR STAFF COULD DEVELOP, UH, WHAT A DOLLAR VALUE OF AAA RATING COMPARED TO AA PLUS RATING FOR, LET'S SAY, A $50 MILLION BOND THAT C P S MIGHT BE PUTTING OUT TO RAISE MONEY, UH, WHAT THE DIFFERENCE IN, IN THE DOLLAR VALUE WOULD BE.
SO WE COULD SAY, YOU KNOW, WITH THE AAA RATING, IT'S X AMOUNT OF MONEY WITH THE AA PLUS RATING, IT'S X AMOUNT OF MONEY WITH THE, IF WE WENT DOWN TO A DOUBLE A RATING, IT WOULD BE THAT WAY WE CAN EXPLAIN THE VALUE TO PEOPLE IN DOLLARS AND CENTS THAT THEY CAN PROBABLY UNDERSTAND BETTER, UH, THAN JUST TALKING ABOUT RATING PERCENTAGES AND WHAT THEY MEAN.
LET US TAKE THAT ON AND SEE HOW WE CAN DO, WE'VE DONE A LOT OF DIFFERENT ANALYSES MM-HMM.
YEAH, I, I WOULD JUST FIND THAT USEFUL IN A WAY TO TALK ABOUT THIS WITH MY CONSTITUENTS.
YOU TALKED ABOUT, UH, SMART GRID AND PROTECTING OURSELVES WITHIN THAT.
UM, HOW DO WE PROTECT OURSELVES FROM ATTACKS THROUGH ERCOT AND, AND THAT GRID THAT WE'RE A PART OF? UH, ARE WE LOOKING AT THAT RELATIONSHIP BECAUSE, YOU KNOW, IT CAN COME THAT WAY, UH, INTO OUR SYSTEM TOO, RIGHT? IT CAN.
OUR, OUR SYSTEMS ASSOCIATED WITH OUR GENERATING UNITS ARE, ARE, YOU KNOW, CORNERED OFF.
THEY HAVE SEPARATE CONTROL SYSTEMS, SO THAT'S GOOD.
I MEAN, IN REALITY, WE ARE IN A MASSIVE CONNECTED STATE GRID, TO YOUR POINT.
AND I, I DON'T THINK WE COULD, COULD CORNER OUR ISLAND OURSELF OFF COMPLETELY, UNLESS WE GOT TO A POINT FURTHER DOWN THE ROAD WHERE WE HAD MORE MICROGRIDS AND THINGS LIKE THAT.
I THINK WE COULD SHOOT FOR, AGAIN, THINKING ABOUT MICROGRIDS ON THE MOST CRITICAL ASPECTS, WORKING WITH YOU ALL, OUR BOARD AND OTHERS ABOUT THE, WHAT'S THE BEST WAY TO DO THAT.
BUT IT IS A FULLY CONNECTED GRID.
AND I WILL SAY THIS, UM, LATER ON, UH, WHENEVER I COME BACK OR WHATEVER, THERE'S A WHOLE SECTION I WANNA TALK TO YOU ABOUT ERCOT AND THE INDUSTRY AND HOW THINGS ARE CHANGING.
AND WE HAVE ALWAYS DONE THE THINGS THAT WE NEED TO HEAR, UM, FOR OUR COMMUNITY, MAKING SURE THAT WE HAVE ENOUGH GENERATION OR ACCESS TO GENERATION.
IT'S LIKE HAVING ENOUGH CASH OR ACCESS TO CASH, SO TO SPEAK.
AND, UM, BUT IT IS SO CONNECTED.
IT HAS NOTHING NECESSARILY ALWAYS TO DO WITH CYBER.
WE'RE SO CONNECTED THAT IF OTHER COMMUNITIES DON'T DO THINGS THAT THEY NEED TO, AND ULTIMATELY WE COULD, WE AS A, AS A STATE COULD HAVE MORE PLANT SHUTDOWNS AND CLOSURES ACROSS THE STATE EARLIER THAN WE HAVE ABILITIES TO TRANSITION TO NEW TECHNOLOGIES THAT COULD CAUSE A STRESS ON THE SYSTEM, WHICH COULD CAUSE AN OUTAGE SOMEWHERE ELSE THAT WOULD HAVE AN IMPACT TO CAUSE ROLLING OUTAGES TO SAN ANTONIO.
AND WE THINK ABOUT THAT ALL THE TIME.
SO WE HAVE PEOPLE WHO ARE ALWAYS INVESTED IN WORKING WITH, UM, OUR CHIEF, UH, LEGAL AND ADMINISTRATIVE OFFICER SERVES AN ALTERNATE ON THE ERCOT BOARD.
SHE'S PAYING ATTENTION TO THAT.
WE HAVE PEOPLE WHO PAY ATTENTION TO ALL ACTIVITIES.
UM, KATHY GARCIA AND HER TEAM ARE CONSTANTLY WORKING AND REALLY TRYING TO MAKE SURE THAT WE'RE LOOKING AT EVERY PRESSURE POINT IN THE SYSTEM TO LOOK AT THAT IMPLICATION OF BEING IMPACTED BY SOME OTHER SITUATION.
AND IT JUST TAKES A, A LONG, ROBUST PERSPECTIVE AND A LONG-TERM STRATEGY ABOUT HOW DO WE KEEP BEING ABLE TO BE RESILIENT, EVEN IN THE FACE OF THE IMPLICATIONS.
IT HAPPENS IN OPERATIONAL, AND IT CAN HAPPEN.
WE, WE, WE HAVE A LOT OF DISCUSSIONS AND WE'D BE GLAD TO COME IN AND TALK TO YOU SOME MORE DETAIL ABOUT THAT.
WELL, I JUST LIKE TO SAY I'D LIKE TO TAKE A TOUR SOMETIME ABSOLUTELY.
OF ALL THE FACILITIES, SO, AWESOME.
THANK YOU, COUNCILMAN, COURAGE.
AND JUST TWO POINTS OF PRAISE.
UH, NUMBER ONE, THE OUTREACH THAT C P SS CONDUCTS OUT IN DISTRICT TWO IS PHENOMENAL.
[01:05:01]
OUTREACH, UM, TOWN HALL LAST NIGHT, AND THE RECEPTION THAT WERE THE WAY THAT Y'ALL WERE RECEIVED WAS PHENOMENAL.AND THE WAY THAT YOUR STAFF WAS ABLE TO ANSWER QUESTIONS, DIALOGUE WITH THE CONSTITUENTS, AND THEY ENABLED TO PROVIDE ADEQUATE RESOURCES TO THEIR ISSUES TOP-NOTCH.
SO THANK YOU SO MUCH FOR THAT.
ALSO, THANK YOU FOR, UM, THE AMOUNT OF WORK THAT Y'ALL HAVE DONE IN OUR COMMUNITY IN TERMS OF DEVELOPMENT, BECAUSE IN OUR OLDER COMMUNITIES, IT'S KIND OF HARD WITH C C P S AND SOLVES ISSUES WITH OLDER HOMES OR BUILDING NEWARK HOMES OR BUILDING STRUCTURES.
BUT THE, THE CUSTOMER SERVICE THAT YOU REPRESENT TO ARE NOT ONLY OUR BIG DEVELOPERS, BUT JUST OUR MOM AND POPS WHO WANT TO BUILD A HOME ON A SMALL, ON A SMALL LOT.
I'VE HERE TIME AND TIME AGAIN, HOW IT'S SLOWLY IMPROVING.
AND SO WE GOT AN EMAIL THIS MORNING, AND THEY SPECIFICALLY WANTED ME TO PRAISE YOU BECAUSE OF, UH, A YOUNG MAN WANTED TO LIVE IN DIGNITY, AND HE'S BEEN WORKING WITH C P S ON GETTING C P S TURNED ON, AND THE AMOUNT OF CUSTOMER SERVICE THAT Y'ALL PRESENTED TO OUR CONSTITUENTS WAS PHENOMENAL.
SO I JUST WANTED TO PERSONALLY SAY THANK YOU AND CONTINUE THE GREAT WORK.
WE WILL, WE ARE ABSOLUTELY COMMITTED.
UH, THANK YOU, UH, PAULA, VERY MUCH FOR YOUR PRESENTATION.
AND, UH, I COMMEND YOU AND YOUR TEAM FOR THE GREAT WORK THAT YOU DO, ESPECIALLY, UH, THE OUTREACH WORK THAT, UH, THE COUNCILMAN MENTIONED, UM, JUST TO, AND ALSO OF COURSE, THANK YOU FOR YOUR SUPPORT ON THE CLIMATE ACTION PLAN.
WE'RE VERY EXCITED ABOUT, UH, HOW THAT'S MOVING FORWARD.
AND, UH, I THINK THAT'LL BE VOTED ON, UH, THIS, THIS WEEK AT COUNCIL.
UM, I, UH, I WANNA TALK ABOUT RENEWABLES.
YES, I'VE DONE A GREAT JOB WITH THAT.
UH, THE SOLAR ROOFS PROGRAM, UH, SEEM TO HAVE BEEN A RUNAWAY SUCCESS.
WE FOUND A THIRD PARTY THAT WAS WILLING TO ACTUALLY OWN THE SYSTEM AND BASICALLY WORK WITH US, GIVING THEM A P P A FOR THE POWER THAT COMES OFF THE SYSTEM, BUT ULTIMATELY GIVE THE CUSTOMER A CREDIT BACK.
AND THE REAL BENEFIT OF THAT IS MOST SOLAR SYSTEMS REQUIRED AN INVESTMENT OF THOUSANDS OF DOLLARS.
STILL, EVEN WITH THE PRICE COMING DOWN, IT'S THOUSANDS OF DOLLARS SYSTEM.
AND SO IT, IT BE, IT HAS BEEN A COST BARRIER FOR SOME OF OUR PEOPLE WHO, YOU KNOW, PEOPLE ARE GREEN ALL OVER THE COMMUNITY.
SO THE ROOFTOP PROGRAM ALLOWED FOLKS TO BE ABLE TO PARTICIPATE, NOT TO HAVE TO DIG INTO THEIR POCKETS OR FINANCE THAT PROGRAM, AND BASICALLY GET A CREDIT AND REALLY FEEL GOOD ABOUT THE WAY THAT THEY ARE CONSUMING AND CONTRIBUTING TO RENEWABLE RESOURCES.
SO I, BUT I THINK THAT MAYBE SOME OF THE LEARNINGS TO THAT IS IT, YOU KNOW, YOU HAVE TO CONTINUE TO WORK WITH THE THIRD PARTIES THAT REALLY WANNA HAVE A LONG-TERM RELATIONSHIP WITH OUR COMMUNITY AND REALLY WORK ON ALL THE DIFFICULTIES THAT COME ALONG WITH REALLY TRYING TO START UP SOMETHING FOR THE FIRST TIME AND TRYING TO BE SUPPORTIVE AND HELP THEM DO THAT.
BUT I THINK WE LEARNED THOSE LESSONS AND WE'RE READY TO MOVE FORWARD.
WE'RE GONNA BE LOOKING AT OUR ABILITY TO BE ABLE TO EXPAND THAT ONE AND EVEN EXPAND COMMUNITY SOLAR.
SO WE WANNA BE ABLE TO DO THAT.
THAT'S WHERE WE CAN PUT IN SYSTEMS ACROSS TOWN, AND SOMEONE CAN SAY, I JUST WANNA BUY THE PANEL.
I JUST WANNA BUY A PANEL, OR I WANNA BUY FIVE PANELS OR 10 PANELS.
AND SO THE FIRST ONE WE DID, LIKE YOU SAID, IT WAS, IT WAS OVERSOLD RIGHT AWAY.
AND WE JUST NEED TO REALLY KIND OF, UM, WE'RE GONNA UPDATE THAT AND SEE HOW MANY MORE OF THESE SYSTEMS WE CAN DO, AND WE'LL COME BACK AND SHARE THAT WITH YOU.
AND I'M SORRY, REMIND ME WHAT YOUR TARGET IS AGAIN FOR RENEWABLES.
SO OUR CURRENT TARGET, WE WANT IT TO BE 20% OF OUR CAPACITY, UM, WAS COMING FROM OUR RENEWABLE SYSTEM.
AND WE'LL HIT THAT, THAT BY 2020 WE'LL HIT THAT.
UM, WHAT WE'RE LOOKING AT NOW IS TRYING TO ESTABLISH A NEW TARGET.
UM, I'LL, I'LL SAY THIS CLIFFNOTES VERSION TO PROBABLY THE, THE SECOND PART OF THE, UH, THE NEXT PART OF THE PRESENTATION.
THERE ARE SOME HUGE SHIFTING DYNAMICS INSIDE OF THE INDUSTRY, PERIOD.
UM, YOU'VE SEEN, WE'VE DECIDED LONG TIME BACK TO, TO DEACTIVATE THE DEALER UNITS, AND THAT'S BECAUSE THE DEALER UNITS ARE SO OLD.
UM, IT WASN'T, WE THOUGHT A GOOD ECONOMIC OR COMMUNITY DECISION TO REALLY PUT THE EXTRA INVESTMENTS ON IT.
NOW, THE WHOLE QUESTION IS, IF, ARE YOU REQUIRED TO DO THAT? ARE YOU GONNA BE NO LONGER REQUIRED TO DO THAT FOR OUR COMMUNITY AND THE QUALITY OF LIFE? WE'RE COMMITTED TO DO ALL WE CAN.
AND SO WE WOULD WANNA MAKE THAT INVESTMENT WOULD, WE DECIDED NOT TO DO IT.
BUT RECENTLY THERE WERE THREE OTHER UNITS, UM, IN TEXAS THAT WHERE PEOPLE ARE SAYING, KEEPING OLD COAL PLANTS, UM, REALLY AREN'T THE BEST THING ECONOMICALLY, THEY STRUGGLE BECAUSE GAS UNITS ARE
[01:10:01]
SO MUCH MORE ECONOMICAL AND GAS.THAT'S, THAT HAS BEEN AND CONTINUES TO BE KIND OF, UM, THE TRANSITION GENERATION.
THAT'S GONNA BE THE, THE FLEX POINT.
AND, AND BECAUSE OF GAS IS, IS, AND BECAUSE OF THE STRENGTH OF THE HISTORICAL PORTFOLIO, WE'VE BEEN ABLE TO BRING IN RENEWABLES.
AND SO THE GETTING TO THAT 20% WAS REALLY LEVERAGED OFF OF THE, THE EXISTING PORTFOLIO.
BUT WHAT WE, WE DO SEE AN INCREASING APPETITE FOR RENEWABLES.
WE DO SEE THAT THE ECONOMICS OF, OF ALL OTHER NEW GENERATION, LIKE NEW COAL DON'T MAKE SENSE.
AND SO WE ARE LOOKING AT THE ABILITY TO HAVE WHAT WE CALL A SMALLER BOX, SMALL BOX RELATIVE TO MAYBE A, A FOSSIL FUEL UNIT, BUT ALSO REALLY TRY TO FILL UP MORE ON THE RENEWABLE SIDE, UTILITY SCALE, AND MAKE WAY FOR WHAT WE CALL DISTRIBUTED GENERATION, MORE ROOFTOP SYSTEMS, THOSE KINDS OF THINGS.
AND WE'RE, AND OUR STRATEGY IS, IS LOOKING AT THAT.
SO WE HOPE TO BE SETTING A NEW TARGET PROBABLY BY NEXT YEAR.
SUPPORTIVE OF A HIGHER NUMBER.
WE'VE SEEN OTHER TOWNS IN TEXAS GO TO, YOU KNOW, COMMIT TO A HUNDRED PERCENT RENEWABLE.
SO I, I THINK THERE'S SOME PEOPLE WHO'D LOVE TO SEE THAT.
I DON'T KNOW HOW, HOW FEASIBLE THAT IS, BUT, OKAY.
DO YOU MIND IF I MAKE A COMMENT ABOUT THAT, PLEASE? MM-HMM.
SO, UM, NO, NO DISPARAGEMENT TO ANY OTHER COMMUNITY THAT HAS MADE THAT COMMITMENT.
BUT, BUT HERE'S THE, HERE'S THE REALITY.
UM, A, A COMMUNITY CAN GO A HUNDRED PERCENT RENEWABLE COMMITMENT, BUT TECHNICALLY IT DOES NOT WORK.
YOU NEED ANY COMMUNITY NEEDS, FOSSIL FUEL, CONSISTENT GENERATION TO SUPPORT IT SO THAT WHEN I'VE HEARD US SAY THIS A THOUSAND TIMES SO THAT WHEN WIND DIES DOWN AND IT DOES, YOU'RE ABLE TO USE LIKE PEAKING UNITS TO MAKE SURE THAT YOU CAN KEEP THE RELIABLE DELIVERY OF THE SYSTEM UP.
SO EVEN TODAY, WHEN PEOPLE SAY, UM, YOU KNOW, LET, CAN YOU GO A HUNDRED PERCENT RENEWABLES? IT'S USUALLY BECAUSE IT'S BACKED UP BY SOME FOSSIL FUEL GENERATION.
IT'S A NET ZERO, BUT YEAH, THEY OFFSET SOMEHOW OR IT'S, UM, IT'S SYNTHETIC, MEANING THAT THEY'RE BUYING A STRIP OF RENEWABLE POWER, BUT THEY'RE NOT RELYING ON RENEWABLE GENERATION A HUNDRED PERCENT OF THE TIME.
SO A HUNDRED PERCENT TARGET DOESN'T TRANSLATE TO THAT.
SO RIGHT NOW WHAT HAPPENS, YOU'LL HAVE, YOU'LL HAVE LIKE A, A SOLAR PLANT AND YOU NEED A GAS PLANT UNDERNEATH IT, RIGHT? YOU JUST DO, THE BENEFIT OF OUR DIVERSE PORTFOLIO IS WE ALREADY HAVE THEM.
AND SO WE DO HAVE A LOT OF CAPACITY IN OUR FOSSIL UNITS TO ADD MORE RENEWABLES.
ULTIMATELY, WHAT WE THINK IS ON THE BROAD SCALE, WHEN WE ADD MORE RENEWABLES, THE REAL BRIDGING WILL BE ENERGY STORAGE, BATTERIES, THINGS LIKE THAT, NON EMITTING UNITS.
AND WE'RE MAKING A PATH TO THAT, AND THAT'LL HELP US MAKE SURE THAT WE CAN OPTIMIZE UTILITY SCALE SYSTEMS AND KEEP THE RELIABILITY UP.
AND SO AS WE, WHAT WE ARE GONNA DO THIS, THE DIFFERENCE FOR US, WE'RE GONNA CREATE A REAL PATH TO DO THAT.
AND WE'RE GONNA SHOW YOU WHAT THAT LOOKS LIKE.
IF WE REALLY WANNA GET TO A DELIBERATE WAY WHERE WE OPTIMIZE THE ASSETS THAT WE HAVE, THAT WE MAKE SURE THAT THE ONES THAT WE INVEST, WE GET ALL THE VALUE OUT OF IT.
BECAUSE THESE PLANTS, JUST FOR CLARITY, EVERY ONE OF THESE PLANTS THAT WE HAVE, WHATEVER THEY ARE, GAS, THE EXISTING NUCLEAR, WHICH IS NON EMITTING, UM, ALL OF THOSE UNITS REALLY BELONG TO THE COMMUNITY.
AND SO IT'S IMPORTANT THAT WE OPTIMIZE EVERY SINGLE ONE OF THOSE UNITS.
DO WE NEED TO BUILD A LOT MORE? DO WE NEED TO BUILD ANY MORE COAL UNITS? I DON'T SEE IT.
WE DON'T NEED TO BUILD ANYMORE NUCLEAR UNITS.
WE'VE GOT A GREAT FLEET RIGHT HERE.
AND THAT'LL BE OUR PATHWAY FOR US TO THINK ABOUT AS WE'RE WE'RE GETTING THAT VALUE AT THAT WE COULD STEP UP BOTH UTILITY SCALE, UH, RENEWABLES, ENERGY STORAGE, AND THEN ACCEPT DG.
SO THAT, THAT WE ARE, WE ARE MOVING THROUGH THAT AND WE WILL GIVE YOU MORE INFORMATION ON THAT.
THANK YOU WOULD APPRECIATE THAT.
UM, SO SPEAKING OF THE, OF THE FOSSIL FUELS THAT YOU HAVE TO YOUR PEAKERS BACK UP THE SYSTEM, YOU KNOW, THERE'S THAT ARTICLE NOT TOO LONG AGO IN THE EXPRESS NEWS ABOUT SPRUCE, WAS IT THE EXPRESS NEWS? MM-HMM.
AND YOU KNOW, THE QUESTION IS, UM, I'M PARAPHRASING IT.
BUT, YOU KNOW, WHAT WOULD IT TAKE TO, UM, TO SHUT DOWN, YOU KNOW, SPRUCE ONE OR SPRUCE TWO? WHAT, WHAT I'M SEEING WHEN WE LOOK THROUGH YOUR, THROUGH THE CAPITAL PLAN IS THAT THERE IS SOME MONEY DEDICATED TO, TO SPRUCE, UH, I'M NOT SURE IF IT'S ONE OR TWO, BUT FOR, TO MAKE IT COMPLIANT AND, AND CLEANER, BUT THEN THERE'S A LOT OF OTHER COAL, YOU KNOW, RELATED EXPENSES WITH RUNNING A COAL OPERATION, RIGHT? LIKE COAL YARD THIS AND COAL YARD THAT.
SO, UM, BUT I IMAGINE YOU'RE STILL GETTING A NET BENEFIT SOMEHOW, RIGHT? YES.
SO WHAT'S, WHAT'S THAT THRESHOLD WHERE IT'S NO LONGER ECONOMICALLY VIABLE TO KEEP THEM IN OPERATION, WOULD YOU SAY?
[01:15:01]
UM, SO, UM, A COUPLE OF THINGS.YES, WE'VE GOTTEN THE SAME LETTERS AND MAYBE, MAYBE MORE THAN THAT.
UH, I WOULD SAY WE PROBABLY GOT OVER A HUNDRED LETTERS, UM, OF, OF CUSTOMERS THAT, THAT, THAT ARE EXPRESSING THEIR CONCERNS WITH THAT.
SO THE PLANTS THAT ARE CLOSING AND THE, THE DELEY UNITS THAT WE ARE, UH, WE HAVE DECIDED TO CLOSE, AND THEY WILL COME OFFLINE AT THE END OF 2018.
THEY WILL BE DEACTIVATED, THEY WILL BE, THEY WON'T BE DISMANTLED.
THEY WILL BE DEACTIVATED AND LEFT THERE.
UM, AGAIN, HERE, HERE'S THE, ONE OF THE REAL CHALLENGES.
AS I SAID EARLIER, IF A TON OF GENERATION COMES OFFLINE, IT COULD CAUSE DISRUPTION IN THE ENTIRE SYSTEM.
AND SO WHAT THE ERCOT MARKET PAYS ATTENTION TO IS, DO WE HAVE ENOUGH CAPACITY TO HANDLE THE DEMAND? WE, WE HAVE A, WE HAVE A GREAT THING, WE HAVE STATE GROWTH, BUT WITH STATE GROWTH AND A LACK OF INVESTMENT IN THE INFRASTRUCTURE THAT WE HAVE, EVERY UNIT THAT COMES OFF ACTUALLY CAN POTENTIALLY CAUSE A IMBALANCE IN THE SYSTEM.
THE UNITS THAT ARE COMING OFF ARE OLDER, MUCH OLDER.
OUR, YOU KNOW, OURS OVER 30 YEARS OLD.
AND, AND WE DECIDED AT THAT POINT, WHEN THEY'RE THAT OLD, UM, IN TERMS OF WHAT WE'RE DOING, IT'S WORTH IT TO BRING IT OFF.
THE SPRUCE ONE UNIT MAY BE ABOUT 20, UM, AND THE, THE SPRUCE TWO UNIT IS NOT EVEN 10 YEARS OLD.
AND SO THE ECONOMICS ON THAT IS IT, IT'S GONNA TAKE A LOT TO MAKE THAT ONE NOT WORK ON TOP OF, BECAUSE WE HAVE BEEN WORKING ON REDUCING OUR COST OF EVERYDAY OPERATION OF THE UNIT.
SO WE, WE KEEP GETTING MORE AND MORE EFFICIENT.
THE YOUNGER THE PLANT IS, IT'S EASIER FOR US TO CONTINUE TO KEEP IT, KEEP IT SO IT CAN GET IN THE MONEY INSIDE OF THIS MARKET.
SO GETTING RID OF IT BEFORE IT'S LOST, ITS ECONOMIC VALUE IS NOT GOOD.
AND MAYBE FOR MORE CLARITY, THE SPRUCE UNIT TWO UNIT COST A BILLION DOLLARS TO THIS COMMUNITY.
SO FOR US TO WALK AWAY IS FOR US TO WALK AWAY FROM A BILLION DOLLAR INVESTMENT, BUT THAT'S STILL A COST BECAUSE WE STILL HAVE THE DEBT ON THE BOOKS.
IF YOU STOPPED OPERATING, YOU STILL HAVE THE DEBT ON THE BOOKS THAT THE COMMUNITY STILL HAS TO PAY FOR.
NOW, LET'S SAY EVERYBODY SAID, LET'S STILL GET OUT, THERE WOULD BE A FINANCIAL IMPLICATION TO PAY FOR THE DEBT ON THAT BOOK, ON THE, ON THAT, NOT OPERATIONS, BUT THE DEBT ON IT, AND THEN HAVE REPLACEMENT POWER.
SO PEOPLE WOULD HAVE TO PAY A PREMIUM FOR THAT PERSPECTIVE.
I THINK, UH, A COUNCILWOMAN, WE WILL GET THERE.
WE JUST HAVE TO BE VERY METHODICAL EVERY YEAR THAT THE PLANT AGES AND EVERY YEAR THAT TECHNOLOGY GETS BETTER, AND EVERY YEAR WE THINK ABOUT LOOKING AT NEW OPPORTUNITIES, WE WILL START TO SEE OUR OLDER UNITS RETIRE AND WE CAN ACTUALLY PUT ON MORE AND MORE RENEWABLE UNITS.
AND IT'LL ACTUALLY HAPPEN PROBABLY SOONER THAN WE THINK.
ALSO, THE GAME CHANGER IS ENERGY STORAGE.
ENERGY STORAGE WILL CHANGE THE ECONOMICS.
SO I GOT A, I GOT A QUESTION FROM THEM ON, UH, WE, WE MEET WITH THE ENVIRONMENTAL COMMUNITY, AS YOU ALL KNOW, QUARTERLY, WHICH WE LOVE DOING.
THEY GIVE US GREAT, UH, UM, INPUT.
AND, UM, ONE OF THE QUESTIONS WAS, PAULA, IF YOU COULD ADD 800 MEGAWATTS OF SOLAR POWER TOMORROW, WOULD YOU DO IT? NO, BECAUSE THAT'S A BILL IMPACT TO THE CUSTOMERS RIGHT NOW, WHEN WE HAVE EXCESS CAPACITY AND EXISTING GOOD PORTFOLIO THAT IT WOULD JUST ADD ON THE COST STRUCTURE, AND IT'S MORE THAN WE NEED.
BUT, AND I ACTUALLY THINK THAT THE PRICES KEEP GOING DOWN ON RENEWABLES.
YOU WE'RE STARTING TO SEE 4 CENT, 3 CENT PER PER KILOWATT HOUR, UM, RENEWABLE PRODUCTS.
AND I THINK ACTUALLY IT'LL GET CHEAPER.
BUT WHAT WILL COST IS ENERGY STORAGE.
ENERGY STORAGE IS NOT HAVING ECONOMIES OF SCALE.
IF YOU WANT MORE ENERGY STORAGE, YOU GOTTA ADD ANOTHER BATTERY.
AND WE, WE HAVE A LITTLE CALCULATION IN THE THING THAT SAYS YOU CAN'T, YOU CAN'T TORQUE THAT UP.
SO YOU HAVE TO ADD BATTERY AFTER BATTERY AFTER BATTERY TO HAVE ENOUGH CAPACITY TO REALLY REPLACE A UNIT LIKE SPRUCE ONE OR TWO.
YOU NEED A TANKER OF BATTERIES.
AND RIGHT NOW, THE PA THE PRICE POINT IS A PREMIUM, $7 BILLION.
SO THAT WAS OUR ROUGH CALCULATION FOR THAT UNIT.
SO IS IT COMING, WILL IT COME AND WILL THE PRICES COME DOWN? YES.
IS IT PREMATURE RIGHT NOW? NO.
SO IT'S NOT A, IT'S NOT AN ANCHOR POINT SOLELY OF ONE THING IN THE OPERATION OF THE UNIT.
IT IS WATCHING THE MARKET CHANGE, WATCHING RESEARCH AND DEVELOPMENT.
THIS IS WHY WE STAY SO CONNECTED TO THE NEW TECHNOLOGIES AND PAY ATTENTION TO EVERYTHING AROUND THE GLOBE BECAUSE WE'RE WATCHING DIFFERENT PROJECTS AND TECHNOLOGIES, CHEMISTRIES, THOSE TYPES OF THINGS.
SO WE CAN BE READY FOR IT AND WE'RE PLANNING FOR IT, AND WE'LL SHOW YOU OUR PATH TO DO THAT.
THE LAST THING YOU, YOU ASKED ABOUT THE HUNDRED, THE, THE, WE DID HAVE THE ENVIRONMENTAL COMMUNITY SAY, WELL, WHY WOULD YOU PUT MORE INVESTMENTS ON SPRUCE? UM, ONE, THERE'S SOME SS E R UM, UPGRADE EQUIPMENT THAT, THAT IS CONSIDERED.
UM, AGAIN, WHO KNOWS IF ENERGY STORAGE HAPPENS QUICKER
[01:20:01]
AND WE CAN ACTUALLY CHANGE ECONOMICS, WE'RE NOT CLOSE TO THAT RIGHT NOW.AND SO WHAT WE'VE DONE IS INSTEAD OF RUSHING TO PUT THOSE SCRS ON, WE'RE WE'RE NOT, BUT WE HAVE TIME BEFORE WE WOULD TECHNICALLY HAVE TO DO IT.
AND THEN WHO KNOWS? YOU WAIT LIKE LONG ENOUGH, MAYBE YOU MIGHT CLOSE THAT UNIT AS TECHNOLOGIES IMPROVE, ECONOMIES CHANGE, THOSE KINDS OF THINGS.
SO HOW LONG IS LONG ENOUGH? I'M JUST WORRIED.
'CAUSE WHILE WE DON'T PUT SS C R ON IT
AND WE HAVE OTHER OPTIONS FOR THE, FOR THE NUCLEAR STILL OUT THERE.
OUR GAS UNITS ARE OUT THERE, OUR PEAKERS ARE OUT THERE.
WE DON'T HAVE TO RUN THAT UNIT ALL THE TIME.
SO, BUT OUR, OUR SPRUCE TWO UNITS HAS ALL THE ENVIRONMENTAL CONTROLS ON IT THAT IT NEEDS.
SO THAT UNIT IS KIND OF MORE OF A, A FLEXING UNIT AND IT'S NOT RUNNING, DOING THOSE ADMISSIONS THAT WAY.
AND OUR MISSIONS HAVE COME DOWN.
HEY, I JUST WANNA ASK A QUICK QUESTION ON YOUR PERSPECTIVE OF THIS EVOLUTION THAT WE'VE GONE THROUGH IN YOUR TIME, CERTAINLY THAT YOU'VE BEEN AT C P S AND UNDERSTANDING YOUR ROLE AS A PARTNER IN ECONOMIC DEVELOPMENT, UH, FOR THE CITY.
SO I'M NOT SURE IF YOU'RE GONNA GO OVER IT IN YOUR PRESENTATION, BUT, UH, IF WE CAN, I WANT TO COVER THAT.
BUT BEFORE I DO THAT, I WANNA ASK A QUICK QUESTION ON SOMETHING THAT, UH, YOU'VE JUST DISCUSSED, WHICH I WANNA LEARN MORE, UH, ABOUT BECAUSE, UH, THE TERM, YOU KNOW, ENERGY STORAGE AND THE STORAGE OF POWER, UH, IS AN INCREDIBLE PLACE.
IF YOU ARE AN ENTREPRENEUR, IT'S AN INCREDIBLE PLACE IF YOU'RE AN ENGINEER, UH, OR IT'S A PLACE OF STUDY BECAUSE IT IS A SORT OF TIPPING POINT FOR, UH, THE WAYS NOT ONLY CITIES, UTILITIES, UH, EVEN PRIVATE BUSINESSES, UH, START TO DEVELOP.
WHAT DO YOU, WHAT DO YOU, WHAT DO YOU MEAN WITHIN YOUR INDUSTRY IS IMPORTANT FOR UNDERSTANDING THAT THE NEW INNOVATIVE TECHNOLOGY OF ENERGY STORAGE? UH, WHAT, WHAT DOES THAT MEAN FOR, FOR U S C P S? WHAT DOES THAT MEAN FOR FUTURE RATE PAYERS? WHAT DOES THAT MEAN FOR FUTURE UTILITIES IN THE CITY? WELL, UM, YOU KNOW, ENERGY STORAGE IN ITSELF, I MEAN, IT'S A, YOU KNOW, THERE, THERE IS A CERTAIN CHEMISTRY PRETTY MUCH ASSOCIATED WITH EVERY TYPE OF FUEL CELL OR LITHIUM ION BATTERY.
BUT WE THINK THAT'S A MANAGEABLE ASPECT IN TERMS OF IT HAS NO REGULAR EMISSIONS AT THE SAME, YOU KNOW, ALL THE TIME.
UM, AND, AND IT IS THE KEY TO FLEXING RENEWABLES AND OPTIMIZING THAT ASSET.
SO WE DO BELIEVE IT IS THE FUTURE.
UM, WE HAVE, I DON'T KNOW IF I KNOW WHAT SLIDE IS ON, BUT WE DO HAVE A, WE HAVE A VIEW, AND WE SAID IT'S POSSIBLE THAT THE, THE PEAK OF ENERGY STORES COULD ACT, ACT, HAPPEN VERY QUICKLY.
IT CAN HAPPEN MODERATELY QUICKLY, OR IT COULD TAKE, YOU KNOW, SEVERAL YEARS TO GO OUT AND WE'RE FIGURING OUT WHAT WOULD BE OUR RESPONSE UNDER ANY OF THOSE SCENARIOS.
BUT THE KEY IS WE DON'T THINK IT'S, IF ENERGY STORAGE WILL, UM, MANIFEST, IT'S WHEN, AND BUT IT, BUT IT'S THE RIGHT THING AND IT'S THE, THE, IT'S THE ASPECT OF THE INDUSTRY THAT IS PROBABLY GONNA CAUSE THE MOST CHANGE AND GOOD.
UM, IT'LL HELP US WITH OUR CLEAN AIR TARGETS.
IT'LL HELP US IN TERMS OF HAVING A MORE MODULE MODULAR ASPECT OF ADDING CAPACITY, WHETHER IT BE PEAKING UNITS OR, OR ENERGY STORAGE.
THE CAPITAL INVESTMENTS WILL COME DOWN IN THE INDUSTRY, AND IN REALITY, CUSTOMERS WILL HAVE MORE CHOICE ABOUT HOW THEY WANT THEIR, THEIR POWER GENERATED AND WILL BE ABLE TO DELIVER IT.
SO IT IS THE KEY TO BOTH WHAT PEOPLE WOULD PREFER TO HAVE AND FOR US TO BECOME MORE EFFICIENT OVER TIME.
ONE PROJECT THAT WE'RE WORKING ON RIGHT NOW IS WITH THE SOUTHWEST RESEARCH INSTITUTE.
UM, WE ARE DOING A PILOT PROJECT WITH THEM THAT IS SUPPORTED BY THE, UM, T E C Q.
UM, AND IT'S A COMMISSION THAT HELPS LOOK AT AIR QUALITY SURE, OF COURSE.
AND SO WE'RE DOING WHAT, UH, IT'S A, IT'S A FLEXING UNIT, SO WE CAN DO A ONE HOUR 10 MEGAWATT BATTERY OUTPUT PROJECT, OR IT CAN FLEX TO BE A TWO HOUR FIVE MEGAWATT CAPACITY PROJECT.
THE GREAT THING ABOUT THAT IS EVEN THAT, THAT WHAT WE GOT IS A $3 MILLION CREDIT ON THE PROJECT.
WHAT MAKES THE ECONOMICS WORTH IT FOR US TO GO AFTER, PLUS SOUTHWEST RESEARCH INSTITUTE IS PARTNERING WITH THE DEPARTMENT OF ENERGY.
SO WE CAN REALLY LEARN FROM THAT PROJECT AND REALLY HAVE THE DATA THAT COMES BACK.
THE MORE THAT WE CAN CONTINUE TO LOOK AT THAT TYPE OF PROJECT, AND THEN TALK TO OUR NEW ENERGY ECONOMY PARTNERS AND REALLY KIND OF USE OUR CONNECTIONS AND ORGANIZATIONS LIKE THE SMART ENERGY, UM, UH, POWER ALLIANCE OR KEYSTONE ENERGY BOARD, OR THOSE THINGS WHERE YOU CAN GET EVEN MORE THOUGHT LEADERSHIP.
WE'RE BRINGING ALL OF THAT INTO SAN ANTONIO.
WE ALSO HAVE THE EPICENTER THAT IS OUT THERE REACHING OUT AND GETTING MORE INFORMATION ON NEW TECHNOLOGIES, IDEAS AND THOUGHTS.
[01:25:01]
AND I WOULD TELL YOU THAT WE'RE ALSO ASKING OUR LOCAL COMMUNITY, OUR TECH COMMUNITY, TO START GIVING US IDEAS SO WE CAN CONTINUE TO USE OUR THOUGHT LEADERSHIP WITH THE THINGS THAT WE SEE IN TECHNICAL RESEARCH AND MAKING THAT WORK.WE SHOULD, I BELIEVE WE SHOULD HAVE THAT PROJECT DONE IN ABOUT 18 MONTHS AT THE SOUTHWEST RESEARCH INSTITUTE, MAYBE LESS.
AND AGAIN, IT'S GONNA BE A GREAT WAY FOR US TO REALLY GET INTO IT BEFORE IT GETS EVEN MORE ECONOMICAL.
THEN WE'LL BE ABLE, WHEN IT GETS EVEN MORE ECONOMICAL, BE ABLE TO DO IT IN A MASS WAY HERE THAT BRINGS, I BELIEVE, ULTIMATELY A BETTER COMMUNITY, MORE JOBS, MORE INTEREST INTO US.
BEING A SMART CITY, IT HAS SO MANY CONNECTIONS, UM, RELATIVE TO THINKING ABOUT NEW TECHNOLOGIES AND BATTERIES.
SO SHOULD I BE THINKING ABOUT IT IN THE SAME WAY THAT, THAT THE SAN ANTONIO WATER SYSTEM SAWS WAS LOOKING AT THEIR AQUIFER STORAGE AND RECOVERY SYSTEM WHEREBY THERE WAS A, YOU KNOW, THERE'S, THERE'S, UH, WET SEASONS, THERE'S WET YEARS, THERE'S DRY YEARS ON THE WET YEARS.
WE CAN'T USE ALL OF THE WATER, BUT WE STORE IT.
UM, YOU HAVE A PORTFOLIO OF ENERGY THAT IS PRODUCED.
IS THERE EVER A, A YEAR OR IS THERE EVER A SCENARIO WHERE YOU THINK THAT IT'D BE REALLY GREAT IF WE COULD STORE A LOT OF THIS ENERGY THAT WE'RE NOT USING, USING? I DON'T, I DON'T UNDERSTAND THE SCIENCE WELL ENOUGH TO KNOW THAT IT SEEMS TO COMPARE WITH THE WAY ERCOT, UM, DEVELOPS ITS BUSINESS WHERE YOU SELL BACK SOME OF THE, UH, ENERGY YOU DON'T USE MM-HMM.
UM, ARE YOU SAYING THAT THERE'S A FUTURE PERHAPS WHERE THERE IS THE EQUIVALENT OF AN A S R AQUIFER STORAGE RECOVERY SYSTEM FOR A C P SS BECAUSE OF THE TECHNOLOGY HAS ADVANCED WHERE WE'VE GOT OUR OWN STORAGE OF SYSTEMS, UNEX, EXPIRABLE POWER OR ENERGY THAT WE COULD DEPLOY WHEN, WHEN NECESSARY? ABSOLUTELY.
I'M, AGAIN, IT'S, IT'S, UH, BATTERY STORAGE.
SO WHAT HAPPENS IS THE BATTERY DISCHARGES, SO IT'S NOT, IT'S NOT LIKE A, THE, THE THING ABOUT A THERMAL UNIT, YOU ARE CONSTANTLY FEEDING IT A COMMODITY.
AND SO IT CAN RUN 24 7 365 WHEN YOU DO DISPATCH A BATTERY, ALL OF THE ENERGY GOES OUT AND THEN YOU HAVE TO HAVE A, A FEEDING IN SOURCE.
IT'S SOMEWHAT LIKE SAWS EXCEPT FOR US, IT'S ALMOST DAILY, IF NOT HOURLY, BECAUSE OUR RENEWABLES AT THE SAME TIME CAN ONLY GENERATE POWER AT A PARTICULAR TIME.
UM, SOLAR ENERGY PROBABLY HAS WHAT WE CALL A CAPACITY ENERGY FACTOR IN THE LOW TWENTIES, MAYBE GETTING UP INTO THE MID 20%, UH, NUCLEAR UNIT HAS A HUNDRED PERCENT EFFICIENCY LEVEL.
BUT IF YOU COULD TAKE A 20% RENEWABLE UNIT AND HAVE A RE HAVE A ENERGY STORAGE COMPONENT, YOU CAN HAVE AN EFFECTIVE OUTREACH OF YOUR RENEWABLE AND MAKE SURE THAT IT CAN, CAN PROVIDE SERVICE MORE RELIABLY.
AND WE HAVE THE ABILITY TO SCHEDULE DISPATCH AND RECHARGE.
WE'RE ALWAYS ABLE TO DO THAT AND WE CAN OPTIMIZE THE INVESTMENT IN RENEWABLES AND MAKE SURE THAT THE BATTERY STORAGE ALWAYS HAS AN INPUT SOURCE, LIKE A, LIKE A SOLAR SYSTEM.
SO IT'S LIKE THAT, BUT IT'S ALMOST EVERY SINGLE DAY COULD BE EVERY HOUR OF THE DAY THAT WE HAVE THE ABILITY TO DO THAT.
WELL, PAUL, THAT THAT, THAT'S REALLY HELPFUL AND I WON'T BORE THE REST OF THE COUNCIL.
WE CAN SIT DOWN AND TRY TO UNDERSTAND THAT BETTER.
'CAUSE IT, IT REALLY IS FASCINATING FOR ME TO THINK ABOUT THE, THE, THE, THE FUTURE OF, OF ENERGY STORAGE.
I MEAN, THESE ARE REALLY DIFFICULT, UM, QUESTIONS TO ANSWERS THAT SOMETIMES THE PRIVATE IS TRYING TO FIGURE OUT WHERE, WHETHER YOU'RE TRYING TO BUILD A HIGHLY RENEWABLE OR HIGHLY CHARGEABLE BATTERY FOR ELECTRIC VEHICLE, UH, WHICH IF YOU THINK ABOUT THAT INDUSTRY, IT, YOU KNOW, CONDENSED THE, THE TIME IN WHICH TECHNOLOGY ADVANCED MUCH QUICKER BECAUSE YOU HAD A TESLA IN THE MARKET REALLY CHALLENGING.
I DON'T KNOW IF C P S IS GONNA BE THAT, YOU KNOW, BECAUSE IT'S NOT PRIVATE, IT'S NOT DRIVEN BY THE SAME INCENTIVES AS A PRIVATE BUSINESS.
BUT, UM, I THINK WITH THE PRESSURE THAT I THINK YOU HEAR FROM SOME OF THE COUNCIL MEMBERS ABOUT TRYING TO GET TO, UH, RENEWABLE AS, AS, AS A GOAL AND A GOAL THAT WE CAN GET TOO MUCH QUICKER, UM, WE CAN MAYBE GEEK OUT ABOUT THAT AT SOME OTHER VENUE.
MAYBE NOW WE TRANSITION TO, UH, THE ECONOMIC DEVELOPMENT PIECE.
UM, FROM MY SHORT HISTORY, I DON'T UNDERSTAND ALL OF THE NUANCES OF HOW LONG EC, UH, C P S HAS BEEN AN ECONOMIC DEVELOPMENT PARTNER WITH US AT THE TABLE.
I DO RECALL FOLKS SAYING THAT THERE WAS A TIME IN WHICH C P S WAS, UH, HANDLING, UM, UH, NEW ENERGY CUSTOMERS, MEANING COMPANIES WHO WANTED TO MOVE TO SAN ANTONIO, UH, ON THEIR OWN.
AND THE CITY WAS HANDLING ITS OWN ECONOMIC NON DEVELOPMENT NEGOTIATIONS WITH THEM.
UM, WOULD YOU SAY THAT THAT IS, MAYBE, CHERYL, YOU HELP US OUT HERE.
HOW LONG HAS THIS PARTNERSHIP BETWEEN THE CITY AND C P S AS PARTNERS IN ECONOMIC DEVELOPMENT TRYING TO LURE AND ATTRACT
UM, AND SO AS WE DEVELOPED THE, UM, PUBLIC-PRIVATE PARTNERSHIP WITH THE ECONOMIC DEVELOPMENT FOUNDATION, UM, THE C E O
[01:30:01]
FROM C P S ENERGY WENT ON THE BOARD.UM, AND WE STARTED WORKING, UH, TOGETHER MORE SO ON THAT.
AND, AND IT WAS PROBABLY THE INTRODUCTION TO OF SOME OF THE 21ST CENTURY TECHNOLOGIES, UH, NEW ENERGY TECHNOLOGIES AND TRYING TO ACHIEVE THE GOALS OF THE STEP PROGRAM, WHICH WAS ALTERNATIVE SOURCES, UH, TO ACCOMPLISH THOSE, UM, 800 MEGAWATTS THAT WE NEEDED TO PRODUCE, BUT NOT BY BUILDING ANOTHER, UM, WHATEVER PLANT, COAL PLANT OR OTHER GENERATION FACILITIES.
SO I WOULD SAY IT REALLY CAME OF AGE, UM, BEGINNING WITH DOYLE AND HAS, I THINK, UM, EVEN BROADENED, UM, IN MORE RECENT YEARS.
SO PAULA, THE ONLY COMMENT I'LL HAVE ON THAT, AND YOU CAN COMMENT IF YOU'D LIKE, IS, UH, I'VE SEEN A, A REAL POSITIVE EVOLUTION IN THE WAY THAT THE CITY HAS USED AS A PARTNER, THE FACT THAT WE ARE MUNICIPALLY OWNED UTILITY, WHICH IS THAT IF A BIG COMPANY WANTS TO COME HERE, WE CAN PROBABLY IN SOME CASES NEGOTIATE THE RATES THAT THEY'LL PAY FOR ENERGY, WHICH IS, UH, LIKE GIVING THEM A TAX ABATEMENT, LIKE GIVING THEM FREE LAND IN THAT THEY'LL BE SAVING MONEY OVER A LONG TERM.
HERE'S WHERE I THINK I WANNA MAKE SURE THAT WE'RE GUARDED AGAINST ANY POTENTIAL, UM, UM, FALLOUTS NEGATIVELY BECAUSE OF THAT.
UH, I THINK THERE WAS A TIME IN WHICH WE WERE FOCUSING YOU ALL AS A PARTNER, SPECIFICALLY BECAUSE WE WANTED YOU TO BRING IN, UH, THESE BIG DATA CENTERS WHO WERE PRODUCING A LOT OF ENERGY.
SO THEY'RE GREAT FOR PRODUCING CONTINUOUS ENERGY AND THEY'RE GREAT FOR THE CITY BECAUSE MORE MONEY THAT GOES TO C P SS AND CONTINUOUS ENERGY MEANS THAT WE ALSO GET A PIECE OF THAT THROUGH OUR 14% PARTNERSHIP.
UM, IN THAT COMES BACK TO OUR GENERAL FUND.
SO WHAT DO YOU FEEL, DO, DO WE FEEL COMFORTABLE THAT WE'RE MOVING AWAY FROM THAT OLD MODEL IN TERMS OF, UM, I THINK, I THINK WE'VE ALL COMMENTED AND WE DON'T WANNA SEE, YOU KNOW, DATA CENTERS AS THE GREAT BIG ECONOMIC DEVELOPMENT PRIZE AND C P S AS A BIG MAGNET TO LURE THOSE IN FOR LOW CHEAP COST OF ENERGY.
UM, BUT USING IT MORE TO, TO SPEAK TO THESE BIG, UM, MANUFACTURING PLANTS.
THE, THE, YOU KNOW, MAYBE IT, IT IS A LARGE CORPORATION OR COMPANY THAT BRINGS IN A THOUSAND JOBS.
UH, THEY'RE NOT NECESSARILY TIED TO JUST PRODUCING HIGH ENERGY FOR US.
ARE ARE, ARE YOU CONFIDENT AS THE LEADER OF, OF C P S THAT WE'VE MOVED AWAY FROM A SYSTEM OF JUST TRYING TO BRING IN BIG EMPLOYERS WHO PRODUCE A LOT OF ENERGY? SO, UH, UM, LET ME ADD SOME CONTEXT.
I'M CONFIDENT THAT WE ARE ALIGNED AND WORKING IN THE SAME WAYS OF WHAT'S REALLY GOOD FOR THE COMMUNITY.
AND WE WOULDN'T, WE WOULDN'T JUST ATTRACT SOMEONE THAT IS NOT A GOOD OVERALL BENEFIT FOR THE COM FOR THE CITY BROADLY.
I, I CHECK WITH MY PEER, THE CITY MANAGER TO MAKE SURE THAT WE STAY IN LINE.
SO I FEEL VERY, VERY COMFORTABLE THAT OUR RELATIONSHIP IS STRONG ENOUGH TO REALLY TALK ABOUT THE MULTIPLE ASPECTS OF BUSINESSES COMING HERE.
UM, BEFORE I GOT HERE, I'VE BEEN HERE 13 YEARS BEFORE I GOT HERE.
PROBABLY ONE OF THE FLAGSHIP INVESTMENTS IN TRYING TO HELP IN ECONOMIC DEVELOPMENT WAS TOYOTA, WHICH WAS A BIG GOAL OF THE, OF THE CITY AT THE TIME.
AND BY FAR THAT HAS CONTINUED TO REAP BENEFITS FOR THE COMMUNITY.
AND SO THERE, THERE WAS SOME LEGACY AND IT WAS REALLY SOURCED ON, LIKE YOU SAID, GOOD, GOOD STRONG RATES FOCUSED ON CUSTOMERS WHO CAN OPTIMIZE WHAT I CALL OPTIMIZE OUR RATE STRUCTURE.
WHEN, WHEN A, WHEN A ORGANIZATION HAS CONSISTENT LOAD, THEY ARE PRODUCING, THEY HAVE MULTIPLE SHIFTS, THEY'RE PRACTICALLY WORKING 20 HOUR, UH, SPANS OF THE DAY, THEY PROVIDE CONSISTENT LOAD, THEY'RE NOT OVER PEAKING THE SYSTEM AND THEY'RE NOT DROPPING OFF LOAD.
THE SIGNIFICANCE OF THAT IS WHEN WE DRIVE PEAK, LIKE AT FIVE-ISH IN THE AFTERNOON MEETING THAT PEAK IS WHAT CAUSES THE STRESS ON ALL OF THE SYSTEMS. AND OF COURSE WE WANNA MEET IT, BUT BUILDING TO THAT ONE PEAK AND THEN ALL OF IT DROPPING DOWN REALLY KIND OF LEAVES YOU OVER INVESTED IN THAT ONE POINT IN THE DAY.
BUT A DATA CENTER OR A MANUFACTURING UNIT THAT REALLY CAN KEEP THEIR LEVEL PEAK WITHOUT DRIVING IT, WE APPRECIATE, 'CAUSE IT HELPS US KEEP ECONOMIES OF SCALE AND A, AND A GOOD WAY TO DO THAT.
UM, THAT SAID, UM, DATA CENTERS IN THEMSELVES, WE'VE FIND, WE FIND SOME THAT ARE REALLY VESTED IN SAN ANTONIO AND, AND FOCUSED ON WHAT THEY BRING IN ALL OF THOSE THINGS.
AND WE HAVE SOME WHERE THEY'VE JUST USED SAN ANTONIO KIND OF AS AN OPTIMIZATION.
UM, THEY HAVE, THEY HAVE CENTERS ALL OVER THE WORLD PRACTICALLY, AND THEY'RE NOT NECESSARILY VESTED HERE.
UM, AND SO THEY HAVE DIFFERENT NEEDS AND DIFFERENT PERSPECTIVES AND THEY'RE NOT NECESSARILY DRIVING LOAD CONSISTENTLY ALL DAY LONG.
WE ARE ANALYZING NOW WHAT WE REALLY WILL GET AS GOOD CONSISTENTLY FOR OUR COMMUNITY ALIGNED TO YOU
[01:35:01]
ALL AS OUR OWNER ALIGNED TO THE NEEDS.WHAT WE DON'T BELIEVE IS THAT, THAT AT THE SAME TIME, UH, THEY SHOULD PUT PRESSURE ON THE COMMUNITY BY NOT SHOWING UP WITH THE BEST BENEFITS FOR OUR COMMUNITY IN TERMS OF OPERATIONS AND CONSISTENCY.
SO WE, WE LOOK AT THAT AND WE WORK WITH IN THE RELATIONSHIP WITH IT, AND WE LOOK AT THOSE THINGS AND ANYTHING ELSE THAT WE THINK ULTIMATELY WILL BE THE BEST WAY FOR US TO TRACK JOBS.
THE LAST THING I'D SAY, UM, ABOUT THAT IS, UH, SO AGAIN, SMART CITY IS A IMPORTANT INITIATIVE FOR US.
IT'S IMPORTANT FOR ALL OF YOU.
UM, WE ARE TALKING CONSTANTLY ABOUT WHAT WE CAN DO IN THOSE TERMS. RECENTLY, WE, WE HOSTED A CITY, I MEAN A COMPANY FROM EUROPE AND THAT, THAT CAME TO US THROUGH OUR CURRENT NEW ENERGY, NEW ENERGY ECONOMY ECOSYSTEM.
AND THEY CAME HERE AND THEY BROUGHT THE C E O, THE CHIEF INNOVATION OFFICER, THE C O O, THE CHIEF FINANCIAL OFFICER.
I MEAN, THEY WERE VERY, VERY SERIOUS.
THEY HAVE A HEADQUARTERS ELSEWHERE IN THE UNITED STATES.
THEY WERE LOOKING AT TEXAS AND THEY'RE SPECIFICALLY INTERESTED IN SAN ANTONIO.
AND, UM, AS WE TALKED ABOUT IT, THEY, THEY, THEY SAID, YOU KNOW, ONE OF OUR BIGGEST PROBLEMS IS WHEN WE GO TO A COMMUNITY, WE CAN'T GET ANY, ANY SYNERGIES.
THE, THE CITY DOESN'T REALLY HAVE A GREAT CONNECTION WITH THE UTILITY, DOESN'T HAVE A GREAT CONNECTION WITH ENERGY COMPANY OR THE WATER COMPANY.
SO IT'S HARD TO GET SYNERGIES.
AND THEY HAVE WALKED AWAY FROM SMART CITY INITIATIVES IN EUROPE.
WHEN I TALK TO THEM ABOUT MY RELATIONSHIP AS A, AS A HEAD OF THE UTILITY COMPANY RELATIVE TO MY UNDERSTANDING MY COMMITMENT HERE AND HOW WE CAN PICK UP THE PHONE, CALL EACH OTHER, TALK ABOUT WHAT'S GOOD FOR SAN ANTONIO, THINK ABOUT THINGS IN TERMS OF EDUCATION, SUPPORT AND ECONOMIC DEVELOPMENT.
AND IF WE REALLY WORK TOGETHER WITH THE SAN ANTONIO ECONOMIC DEV, UH, FOUNDATION, THE FREE TRADE ALLIANCE, AND EVERY OTHER BUSINESS IN SAN ANTONIO, THE WAY WE'RE SO CONNECTED HERE, THEY WERE ABSOLUTELY EXCITED ABOUT THE MODEL THAT WE HAVE AND THE POTENTIAL FOR OUR MODEL TO HELP BUSINESS.
AND I BELIEVE IN THAT AND, AND WE'RE GONNA CONTINUE TO OPTIMIZE AND DO EVERYTHING WE CAN ON CPS ENERGY'S PART TO MAKE SURE WE BRING THE RIGHT LEVEL OF DEVELOPMENT AND COMMITMENT HERE.
WELL, PAULA, THANK YOU SO MUCH.
I JUST WANTED TO MAKE SURE THAT YOU WERE, YOU KNOW, SAYING A LOT OF THE THINGS THAT I BELIEVE, AND I THINK YOU ALL BELIEVE NOW THAT WITH SEVERAL YEARS PRACTICE, UH, OUT LOUD.
UM, AND, UH, THANK YOU FOR I THINK WHAT, WHAT WHAT I HOPE WILL BE YOUR LASTING LEGACY, UH, EVEN BEYOND THE, THE, THE YEARS.
BECAUSE YOU'VE ALREADY SET A STRONG TONE AT THE BEGINNING, WHICH IS THAT YOU WANNA PUT PEOPLE FIRST AND, AND I THINK THAT GOES TO YOUR EMPLOYEES AND TO YOUR CUSTOMER BASE HERE.
SO I HOPE THAT YOU'LL CONTINUE TO LEAD WITH THAT WITH YOU AND YOUR EXECUTIVE STAFF AS YOU CONSIDER THAT.
UM, UH, MAYOR, THOSE ARE THE ONLY QUESTIONS I HAVE AS LONG AS THE, THE LAST REQUEST IS, I HOPE YOU DO GET TO YOUR TYPEWRITER, UH, SLIDE UP HERE.
'CAUSE I'M CURIOUS TO SEE HOW YOU'RE EXPLAINING THAT.
THANK YOU, MAYOR, IF YOU THANK YOU COUNCIL AGAIN, OR I CAN COME BACK.
PAUL, YOU HAVE THE FLOOR FOR THE NEXT 40 SLIDES,
SOME OF IT I'VE TALKED ABOUT, SO I'LL, I'LL HIGHLIGHT THAT IF WE CAN GO FORWARD.
SO, UM, IS THAT MY GO GO BACK ONE.
SO, SO YES, SO, SO BASICALLY I HAVE TALKED ABOUT SMART CITY.
WE BE, WE BELIEVE AGAIN THAT THE CITY OF SAN ANTONIO OWNS SMART CITY.
UM, WHAT WE HAVE IS WE'VE INVESTED IN A NEW DIGITAL INFRASTRUCTURE IN TERMS OF NEW METERS AND NEW MESH SYSTEMS THAT WILL ALLOW IT TO BE A FOUNDATION WHERE MORE SENSORS AND OTHER THINGS CAN BE PLACED ON IT.
AND WE CAN OPTIMIZE LIGHTING PROJECTS AND OTHER THINGS IN THE COMMUNITY.
UM, I'LL JUST HIGHLIGHT AGAIN, THE, THE BEAUTY OF A LIGHTING PROJECT IS IT CAN BE, UM, PROGRAMMED TO RESPOND TO HUMAN MOVEMENT, CAR TRAFFIC AND OTHER THINGS THAT REALLY MAKE IT A MUCH MORE, UM, VALUE ADDED COMMUNITY.
AND SO WE ARE, WE ARE INTERESTED IN ALL OF THOSE PROJECTS.
WE ARE, WE, WE DO SPEND TIME, I SPEND TIME TALKING TO THE HEAD OF SAWS AND THE HEAD OF VIA AS WELL.
UM, AND WE'RE STARTING, UM, DISCUSSIONS WITH THE RIVER AUTHORITY.
ALL OF THESE THINGS, IF WE WORK TOGETHER, WE CAN REALLY ACHIEVE A SMART CITY UNDER THE CITY'S UMBRELLA.
SO I'LL TRY TO GET THROUGH THIS SECTION.
ELECTRONS LOVE EVERYONE, UM, WHICH BASICALLY MEANS THEY DON'T CARE HOW YOU VOTE OR WHAT YOU, OR WHAT YOU LIKE TO EAT OR ANYTHING LIKE THAT.
THEY, WE, WE SEND ELECTRONS ALL OVER THE COMMUNITY AND WE ARE HAPPY WITH THAT.
AND SO WE REALLY FEEL LIKE WE ARE HERE TO SERVE EVERYONE AND MAKE SURE THAT PEOPLE'S QUALITY OF LIFE IS, IS ENDORSED.
UM, ONE THING THAT WE DID AT OUR 75TH WAS TALK ABOUT WE HAVE BEEN PROVIDING THE POWER TO DREAM FOR 157 YEARS, AND WE WANNA MAKE SURE THAT EVERYONE'S ABILITY TO LIVE THE LIFE THAT THEY WANT, AND A BEAUTIFUL CITY LIKE SAN ANTONIO IS SUPPORTED.
UM, I TALKED ABOUT THIS A LITTLE BIT, I, BUT I'D JUST LIKE TO HIGHLIGHT, IF YOU KIND OF READ THAT CHART, WHAT IT'S REALLY SAYING IS THERE WAS A TIME WHEN WE WEREN'T DIVERSIFIED AND THERE WAS A TIME THAT WE WERE ALL FOSSIL FUEL,
[01:40:01]
ALL GAS, UM, AT, YOU KNOW, LONG STORY SHORT, UM, THAT IS WHEN WE HAD LOCKED IN OUR PRICING, BUT OUR SUPPLIER, OSCAR WYATT HAD NOT.AND SO THEY WERE GETTING HIGHER PRICING THAN WE WERE PAYING ON THE CONTRACT.
THAT'S WHAT CAUSED THE LAWSUIT.
THEY WANTED TO BREAK THE CONTRACT SO THEY COULD CHARGE SAN ANTONIO HIGHER PRICES.
WHAT WE REALLY LEARNED, YOU KNOW, WE BENEFITED, WE ENDED UP WITH VALERO AND WE ENDED UP WITH, UM, LIKE, YOU KNOW, A A A GREAT, UH, COMMUNITY ASSET IN, IN, IN THAT COMPANY.
BUT WE ALSO LEARNED THAT BEING IN ONE TYPE OF COMMODITY OR ONE TYPE OF GENERATION SOURCE WAS NOT HEALTHY.
AND SO WE'VE BEEN ON THIS PATHWAY FOR DECADES TO BE DIVERSIFIED.
AND THERE'S A, THERE'S A, I NEED TO WORK ON, THERE'S SOME COLORATION THAT'S A LITTLE BIT TOO TIGHT, BUT RIGHT NOW WE HAVE AN INCREASING LEVEL OF GRASS, INCREASING LEVEL OF RENEWABLES, A REDUCING LEVEL OF COAL, AND A MODERATELY STABLE LEVEL OF NUCLEAR.
AND THEN WE DO THINGS IN BETWEEN THAT DIVERSIFICATION GIVES US CURRENTLY STRENGTH THAT DIVERSIFICATION ALLOWS US TO MAKE CHANGES AND PIVOTS.
THAT IS ONE THING THAT KEEPS US OUTTA OVER-LEVERAGING ONE DIRECTION OR ANOTHER.
BUT AS I MENTIONED EARLIER, I MEAN EVEN THERE'S SOME INCREASED PRESSURE.
THIS IS AN ARTICLE I WOULD BE GLAD TO SEND IT TO YOU ABOUT COAL AND WHY IN IN TEXAS IT IS VERY HARD FOR COAL TO CONTINUE TO GENERATE.
AND SO I DO NOT BELIEVE IN OUR, OUR, OUR LEADERS SHOULD NOT BELIEVE YOU'RE GONNA SEE A LOT MORE COAL INVESTMENT AND THAT'S GONNA START TO DRIVE SOME CHANGES IN THE INDUSTRY.
UM, AND THEN THE, THE CHALLENGE AGAIN THOUGH IS THE INVESTMENTS ARE THE, THE, WHEN WE ASK FOR SUPPORT FOR OUR INVESTMENTS, AND I MEAN OVER THE 157 YEARS, UM, THESE ASSETS, AGAIN ARE OWNED BY THE COMMUNITY AND THEY PROVIDE VALUE.
AND THE ASSETS WERE HAVE BEEN DESIGNED TO LAST 30, 40, 50 YEARS, UM, 60 YEARS MAYBE EVEN ON CERTAIN ASSETS.
THE BENEFIT OF THAT IS AS THOSE, THOSE ITEMS AGE AND WE FINE TUNE THEM EVERY YEAR AFTER YEAR AND WE OPTIMIZE 'EM AND WE MAINTAIN THEM, THEY HELP US KEEP THE PRICE LOW.
SO IT IS IMPORTANT FOR US TO MANAGE THE ASSETS THAT WE HAVE.
AND AGAIN, AND UM, COUNCILMAN THE QUESTION YOU ASKED, UM, IT'S NOT NECESSARILY ABOUT TIME, BUT OPTIMIZATION AND LOOKING FORWARD TO LOOK FOR NEW OPPORTUNITIES TO DO IT, BUT GOING TOO FAST AND GETTING RID OF PLANTS TOO EARLY DOES HAVE THAT CYCLICAL EFFECT OF PUTTING MORE PRESSURE.
SO WE JUST WANNA DO IT THOUGHTFUL SO OUR RATES STAY AFFORDABLE AND WE'RE LOOKING TO THE NEW, TO THE FUTURE TO SET NEW STANDARDS AND NEW LEVELS.
SO, UM, AS I SAID BEFORE, WE ALWAYS HAVE TO LOOK FOR A BALANCE AND, AND IT WAS BECAUSE WE HAVE FOSSIL FUELS AT SUCH A CONCENTRATED LEVEL THAT WE'VE BEEN ABLE TO LEVERAGE AND GET TO THE POINT WHERE WE ARE AND, AND ADD MORE RENEWABLES.
I REALLY BELIEVE IT'S GONNA GO THE OTHER WAY AND WE'RE GONNA HAVE MORE RENEWABLES, DG AND OTHER SOURCES.
AND THIS IS A LITTLE BIT HARD, UM, GRAPH TO SAY, BUT I, I DO WANNA HIGHLIGHT THAT THIS SAID ON THE PATH THAT WE HAVE AND THE TARGETS THAT WE HAVE, WE HAVE BEEN ABLE TO REDUCE OUR NOX SOCKS AND C O TWO IN SIGNIFICANT LEVELS AND WE WILL CONTINUE TO DO THOSE REDUCTIONS.
WE ARE PROUD OF OUR ABILITY TO SUPPORT THE AIR QUALITY ISSUES AND WORK WITH THE CITY.
AND WE WERE GLAD TO BE THERE FOR THE SIGNING THAT WAS MONUMENTAL AND TOTALLY ALIGNED TO THE THINGS THAT WE SEE FOR THE FUTURE.
AND IT SUPPORTS THE EXISTING RELATIONSHIP WE HAVE AND OUR COMMITMENT TO WORK WITH U T SS A.
AND I WILL SAY THAT SOMETIMES U T S A SAYS, YOU'RE HARD TO WORK WITH BECAUSE, YOU KNOW, WHY DON'T YOU JUST GIVE US $50 MILLION? I MEAN, THAT'S NOT A DIRECT THING.
AND WE SAID, NO, WE NEED TO HAVE REAL PROJECTS BECAUSE WE REALLY WANNA GET TO THESE REAL LIFE SOLUTIONS.
AND WE WERE GLAD TO PUT IN THE AIR QUALITY STUDY AND, AND PLAN FROM THERE.
DID YOU WANT ME TO SAY SOMETHING? YEAH, NO, FINISH YOUR THOUGHT THAT THAT WAS IT.
UM, SO I KNOW IN THE NEXT SLIDE 40 WE BEGIN TO TALK ABOUT THE GENERATION MIX AND ERCOT, UH, THIS MIGHT BE A NATURAL STOPPING POINT BECAUSE WE DO NEED TO GO INTO EXEC FOR THE COMPETITIVE MATTER, UH, RELATED TO C P S.
SO I LEAVE THAT TO YOU IN TERMS OF WHEN YOU WANNA PAUSE.
I'M READY TO GO THE PRESENTATION, WE CAN COME BACK TO IT.
IS THIS A GOOD STOPPING POINT FOR YOU? GO.
UH, SO WE DO HAVE AN EXECUTIVE
[Executive Session]
SESSION THAT WE MUST TAKE UP AT LEAST ONE ITEM TODAY.UH, SO THE TIME NOW IS 3 55, UH, ON THIS 29TH DAY OF NOVEMBER, 2017.
PURSUANT TO THE AUTHORITY GRANTED BY CHAPTER 5 5, 1 OF THE TEXAS GOVERNMENT CODE V T C S, THE TEXAS OPEN MEETINGS ACT, THE CITY COUNCIL WILL NOW RECESS INTO EXECUTIVE SESSION TO DISCUSS ECONOMIC DEVELOPMENT NEGOTIATIONS PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 5 1 0.087, ECONOMIC DEVELOPMENT, THE PURCHASE EXCHANGE, LEASE, OR VALUE OF REAL PROPERTY PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 5 1 0.072 REAL PROPERTY AND LEGAL ISSUES RELATED
[01:45:01]
TO THE COMPETITIVE MATTERS OF C P SS AS A PUBLICLY OWNED UTILITY PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 5 1 0.071 CONSULTATION WITH ATTORNEY AND