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Dec. 2, 2024

Special Called Agenda original pdf

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SPECIAL CALLED MEETING OF THE ELECTRIC UTILITY COMMISSION December 2, 2024  6:00 PM AUSTIN ENERGY HEADQUARTERS/SHUDDE FATH CONFERENCE ROOM 4815 MUELLER BLVD AUSTIN, TEXAS Some members of the Electric Utility Commission maybe participating by videoconference. Public comment will be allowed in-person or remotely by telephone. Speakers may only register to speak on an item once either in-person or remotely and will be allowed up to three minutes to provide their comments. Registration no later than noon the day before the meeting is required for remote participation. To register contact Amy Everhart, at Amy.Everhart@AustinEnergy.com or via phone at 512-322-6087. Members: Dave Tuttle, Chair Kaiba White, Vice Chair Ayo Akande Raul Alvarez AGENDA Lauren Bellomy Cesar Benavides Jonathon Blackburn Randy Chapman Chris Kirksey Cyrus Reed Joshua Rhodes CALL MEETING TO ORDER PUBLIC COMMUNICATION: GENERAL The first 5 speakers signed up prior to the meeting being called to order will each be allowed a three-minute allotment to address their concerns regarding items not posted on the agenda. DISCUSSION AND ACTION ITEMS 1. Recommend approval of Austin Energy’s Resource, Generation and Climate Protection Plan to 2035, which provides a flexible management framework to meet changing conditions, and strategies for energy needs, generation supply, demand response, energy efficiency, and equity. Funding: This item has no fiscal impact. 2. Approval of a recommendation on Austin Energy's Resource, Generation, and Climate Protection Plan. FUTURE AGENDA ITEMS ADJOURNMENT

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Dec. 2, 2024

Item 2- Recommendation on Austin Energy's Resource, Generation, and Climate Protection Plan original pdf

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Electric Utility Commission Resolution 20241202-XX on Austin Energy Resource, Generation and Climate Protection Plan WHEREAS, on August 8, 2019, the Austin City Council adopted a resolution declaring a climate emergency and calling “for an immediate emergency mobilization to restore a safe climate” and directing the city manager to take a number of steps to accelerate local greenhouse gas emissions reductions, including from Austin Energy; and WHEREAS, in 2020, the Austin City Council adopted the Austin Energy Resource, Generation and Climate Protection Plan to 2030, which states that “Austin Energy will maintain an energy supply portfolio sufficient to offset customer demand while eliminating carbon and other pollutant emissions from its electric generation facilities as rapidly as feasible within the limitations set by the Austin City Council.” and states that “and all generation resources will be carbon-free by 2035;” and WHEREAS, the Austin Energy Resource, Generation and Climate Protection Plan to 2030 also states that “Austin Energy will no longer purchase, contract for or build long-term generation or storage resources that emit new carbon”; and WHEREAS, in 2021, the Austin City Council adopted the Austin Climate Equity Plan, which includes community-wide greenhouse gas reduction goals to achieve net-zero emissions by 2040, with about 75% reduction by 2030; and WHEREAS, electrification is a key strategy for reducing and eliminating greenhouse gas emissions in many sectors and Carbon-Free electricity is needed to achieve those goals; and WHEREAS, on June 8, 2023, the Austin City Council adopted a resolution endorsing the Fossil Fuel Non-Proliferation Treaty and a plan for “transitioning to a 100 percent clean energy economy, phase out fossil fuel production, and invest in communities on the frontlines of environmental injustice;” and WHEREAS, ground level ozone and particulate matter air pollution in the Austin region already exceed the health-based standards set by the U.S. Environmental Protection Agency and CAPCOG has identified that increased NOx emissions from electric generating units, including Austin Energy's power plants, as highly correlated with high local ozone measurements; and WHEREAS, the Austin Energy Resource, Generation and Climate Protection Plan to 2030 references an affordability goal and affordability remains important to many customers, but the workshops that Austin Energy hosted as part of this process to update the Austin Energy Resource, Generation and Climate Protection Plan revealed that a large majority of participants are supportive of allowing rate increases beyond the current goal of two percent per year, so long as …

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Dec. 2, 2024

Item 1: Austin Energy's Resource, Generation, and Climate Protection Presentation original pdf

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Resource, Generation and Climate Protection Plan to 2035 Lisa Martin Deputy General Manager and Chief Operating Officer December 2, 2024 © Austin Energy Our mission is ultimately about the people we serve 2 3 4 Managing Our “Toolkit” Prioritize Customer Energy Solutions Develop Local Solutions Continue our Commitment to Decarbonization Further our Culture of Innovation 5 Prioritize Customer Energy Solutions • Lead with Energy Efficiency • Lead with Demand Response • Move from Megawatt Reduction to Greenhouse Gas Avoidance • Promote Beneficial Electrification Incentivize Customer-Sited Batteries • • Promote Innovative Local Solar Solutions • Improve Customer Interconnection Experience 6 Develop Local Solutions • • • Prioritize Customer Energy Solutions Increase Transmission Import Capacity • Develop Emissions Guardrails for All Peakers • Incorporate Equity into Siting Considerations Promote Local Utility-Scale Solar Protect Local Air Quality Include Local Utility-Scale Batteries • • Avoid Retiring Local Generation Prematurely • Pursue Additional, More Efficient Natural Gas Peaker Units • • Focus Customer Programs to Support Neighborhoods • Maintain Black Start Utility Status 7 Continue Our Commitment to Decarbonization • Carbon Free as a Percentage of Load • Exit Coal and Reaffirm REACH – Reduce Emissions Affordably for Climate Health • Wind and Solar Outside of Austin Energy's Service Area • Geothermal, Nuclear and Other Carbon-Free Technologies 8 Further Our Culture of Innovation • Research and Development Partnerships • Grant and Other Funding Opportunities • Solar for All • Solar Standard Offer • Pilot Geothermal Generation • Enhance "Virtual Power Plant" Programs and Set Up a Distributed Energy Resources Management System (DERMS) • Support Vehicle-to-X Opportunities • Explore Advanced Nuclear Technologies • Emerging Carbon Capture Technologies 9 10 ©Austin Energy. All rights reserved. Austin Energy and the Austin Energy logo and combinations thereof are trademarks of Austin Energy, the electric department of the City of Austin, Texas. Other names are for informational purposes only and may be trademarks of their respective owners.

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Dec. 2, 2024

Item 1: Draft Austin Energy’s Resource, Generation, and Climate Protection Plan Part 1 of 4 original pdf

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Powering Austin’s Clean Energy Future DRAFT AUSTIN ENERGY RESOURCE, GENERATION AND CLIMATE PROTECTION PLAN TO 2035 I N O T A R E N E G , E C R U O S E R Y G R E N E N T S U A I I 5 3 0 2 O T N A L P N O T C E T O R P E T A M L C D N A I 2 | Austin Energy Resource, Generation and Climate Protection Plan to 2035 Return to Table of Contents TABLE OF CONTENTS 2 Executive Summary 8 Introduction 10 Understanding Current and Future Energy Landscapes 10 Risks Austin Energy Faces 12 The ERCOT Energy Landscape 16 Webber Energy Group’s View of the Energy Landscape 18 Austin Energy’s Energy Landscape 28 Guiding Light 28 Collaboration 28 Community Survey 30 Stakeholder Meetings 34 Electric Utility Commission 34 Core Values for the 2035 Plan 34 Reliability 34 Affordability 34 Environmental Sustainability 34 Energy Equity 34 Community Objectives for the 2035 Plan 35 The Power of Energy Equity 38 Exploring Future Energy Options 39 Forming the Foundation — Inputs 40 Projecting the Future — Scenarios 42 Testing the Extremes — Sensitivities 46 Measuring Different Mixes — Portfolios 48 Assessing Performance — Key Insights and Trade–offs 50 Powering Austin’s Clean Energy Future 50 Key Actions 50 Prioritize Customer Energy Solutions 52 Develop Local Solutions 54 Continue our Commitment to Decarbonization 55 Further our Culture of Innovation 56 Reporting for the 2035 Plan 58 Conclusion N O I T A R E N E G , E C R 5 3 0 2 O T N A L P N O I T U O S E R Y G R E N E N I T S U A C E T O R P E T A M I L C D N A 2 | Austin Energy Resource, Generation and Climate Protection Plan to 2035 ©2024 Austin Energy. All rights reserved. Austin Energy and the Austin Energy logo and combinations thereof are trademarks of Austin Energy, the electric department of the Austin Energy Resource, Generation and Climate Protection Plan to 2035 | 1 City of Austin, Texas. Other names and logos are for informational purposes only and may be trademarks of their respective owners. Return to Table of Contents AUSTIN ENERGY RESOURCE, GENERATIONAND CLIMATE PROTECTION PLAN TO 2035 EXECUTIVE …

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Dec. 2, 2024

Item 1: Draft Austin Energy’s Resource, Generation, and Climate Protection Plan Part 2 of 4 original pdf

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Austin Energy Generation Across Texas Wind Solar Natural Gas Coal Nuclear Biomass Because Austin Energy participates in the ERCOT market, it’s critical for us to recognize and adapt to changes and trends in this system. Right now, we’re seeing a dramatic change to ERCOT’s power supply mix. Significant growth in wind, solar and battery energy storage; energy demand increases; transmission issues; and retirements of coal and gas generation are leading to fluctuating prices and significant changes in the way power is balanced to meet Texas’ energy needs. ERCOT Demand Growth There are two key factors in the energy landscape — supply and demand. Supply must meet demand, so predicting future demand is crucial for planning resources. ERCOT expects power demand to increase going forward. According to ERCOT’s 2023 forecast numbers, which we incorporated into our modeling, peak energy use increases from 83 gigawatts (GW) in 2025 to 99 GW in 2035. 14 | Austin Energy Resource, Generation and Climate Protection Plan to 2035 Return to Table of Contents Predicting future demand helps ERCOT plan how to meet the growing needs of the system. For Austin Energy, this helps us better understand the market while we outline future resource strategies to meet our customer and system needs. New Generation and Retirements in ERCOT On the supply side of the energy equation is generation. ERCOT expects significant growth in this area as well. Following the national trend, many of these proposed new generation projects in ERCOT are renewable energy sources. While these sources provide clean energy, their weather-dependent nature has led to growing operational and reliability risks. Meanwhile, a significant portion of older power plants in the ERCOT market are nearing the end of their operational life. ERCOT also manages retirements to ensure grid reliability, potentially intervening to keep critical plants online when absolutely necessary. As ERCOT works to balance supply and demand on the statewide system, it’s important for Austin Energy to factor that information into our resource planning. The 2035 Plan incorporates the most up-to-date, official information related to announced plant additions and retirements from ERCOT. This gives us one look to the future for the modeling process. ERCOT and Transmission Congestion Because many new generation sources are located far from the end users, ERCOT is seeing a significant increase in transmission congestion. When transmission lines need to transport more power than they can carry, they can become overloaded, causing …

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Dec. 2, 2024

Item 1: Draft Austin Energy’s Resource, Generation, and Climate Protection Plan Part 3 of 4 original pdf

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» Affordability — Stakeholders continued to talk about equity in their affordability discussions. The concept of energy burden should be considered when looking at affordability. » Reliability — Predictability is just as important as reliability, especially with the understanding that perfect power isn’t attainable. Though 100% reliability may not be possible, there are those for whom energy supply is critically important, like those with medical needs. • Workshop #2 — Building Foundational Understanding The second stakeholder workshop had two main goals: to provide an introduction to the ERCOT market and have Dr. Michael Webber with the University of Texas at Austin provide his expert insight into energy market trends, resource options and potential risks and tradeoffs. Some top themes from the ERCOT 101 presentation included: » By law, Austin Energy is bound to the ERCOT market and its rules. » The ERCOT market, like any market, has benefits and risks. Decisions made in the marketplace have tradeoffs. » Decisions in the 2035 Plan will affect what tools are available to maximize benefits and minimize risks in the ERCOT market. Some top themes from Dr. Webber’s presentation included: » Electric utilities, Austin Energy included, need to prepare for an era of unprecedented electricity consumption. and carbon management. » “Do your best, clean up the rest” — through a combination of efficiency, electrification » The key lens through which energy options should be considered: trade-offs. The group was able to ask presenters questions and dive deeper into the topics. • Workshop #3 — Input on Values and Objectives The main focus of the third stakeholder workshop was the Resource Planning Trade-offs Exercise. This exercise allowed participants to highlight the trade-offs they were comfortable making around the values of reliability, affordability and environmental sustainability. Participants prioritized the three values with scores ranging from 5 to 10, with 10 being the highest priority. After prioritizing the values, participants held group discussions to hear from each other. Then, they reallocated their priorities if they wanted. The score range shows the lowest and highest ranking a value received. Here are the results of the exercise: Value Reliability Affordability Environmental Sustainability 9.08 7.91 7.95 9.21 7.91 7.82 8 to 10 7 to 10 6 to 10 Original Allocation Reallocation Score Range The exercise showed that, across the board, reliability was the community’s top priority. The discussion around objectives also started in Workshop #3. Participants filled out a …

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Dec. 2, 2024

Item 1: Draft Austin Energy’s Resource, Generation, and Climate Protection Plan Part 4 of 4 original pdf

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Broadening the Picture with Ascend Analytics’ Portfolios Along with Austin Energy’s model and analysis, we also contracted with Ascend Analytics to get additional portfolios and broader insights. They use a different type of model, which gives different outputs. With our approach, the resource mixes are human designed while in Ascend’s approach, those mixes are computer designed. For example, we can tell Ascend’s model that we want a portfolio that achieves carbon-free by 2035, hits a 65% renewable energy target by 2027 and has sufficient local resources to minimize the risk of load zone price separation. The model uses this information to forecast a lowest-cost solution within those parameters. We are then able to compare the outputs from Ascend’s modeling to our results and use the combined information to find better resource mixes. Another advantage with Ascend is the ability to generate a range of expected outcomes instead of a single data point. They do this by running their portfolios through 100 future situations to generate a range of outcomes. This range includes the average outcome as well as the 5th and 95th percentiles to represent the outer edge possibilities. This is helpful in understanding uncertainty and the significance of variability in events. Refining the Information and Portfolios With all the scenarios and sensitivities in the modeling analysis, we are able to study dozens of approaches to meeting the community’s energy needs. Based on that analysis, Austin Energy worked with the EUC to fine-tune four additional portfolios. We wanted to maximize strengths and resolve issues. For example, we talked with the EUC about the number we used for transmission import capacity. As a baseline in the model, we included ERCOT’s information on future transmission projects and upgrades. This includes all known projects for Austin Energy as well as every other transmission provider in ERCOT. This information, though, only goes out five years. We know we’ll still add in projects and upgrades beyond that window. In discussion with the EUC, we decided to add more import capacity as we enhance the modeling to account for that continued work. These are the refined portfolios: Portfolio Description Porfolio #14 Porfolio #15 Porfolio #16 This portfolio maxed out DSM projections and then added in just enough local storage and natural gas peaker units to reach near-term local reliability. It included increased transmission capacity. This portfolio was similar to #12 except with increased transmission capacity, DSM …

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Dec. 2, 2024

Item 1: RCA- Austin Energy’s Resource, Generation, and Climate Protection Plan original pdf

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..De Posting Language ..Title Approve adoption of Austin Energy’s Resource, Generation and Climate Protection Plan to 2035, which provides a flexible management framework to meet changing conditions, and strategies for energy needs, generation supply, demand response, energy efficiency, and equity. Funding: Approving the 2035 Plan does not have immediate fiscal impact. The future financial impact will be determined as specific projects are presented to City Council to implement the plan over the next few years. Lead Department Austin Energy Fiscal Note Approving the 2035 Plan does not have immediate fiscal impact. The future financial impact will be determined as specific projects are presented to City Council to implement the plan over the next few years. Prior Council Action: December 1, 2022 - Council approved a resolution regarding updates to the 2030 Austin Energy Resource, Generation, and Climate Protection Plan. March 26, 2020 - Council approved the Austin Energy Resource, Generation, and Climate Protection Plan to 2030. For More Information: Lisa Martin, Deputy General Manager and Chief Operating Officer 512-322-6457; Amy Everhart, Director, Local Government Affairs 512-322-6087. Council Committee, Boards and Commission Action: November 19, 2024 – Council’s Austin Energy Utility Oversight Committee considered the briefing by AE on the Resource, Generation and Climate Protection Plan to 2035. December 2, 2024 – AE’s Resource, Generation and Climate Protection Plan to 2035 to be reviewed by the Electric Utility Commission. Additional Backup Information: Austin Energy requests approval of the Austin Energy Resource, Generation and Climate Protection Plan to 2035 (“Resource Plan”). Austin Energy is currently operating under the resource plan adopted in March 2020 and seeks adoption of the Resource Plan due to market changes, increased load growth, and reliability concerns. This Resource Plan retains the overarching goal of being carbon free by 2035 and provides Austin Energy additional operational flexibility to achieve success in light of changed conditions. Austin Energy seeks to build on its reputation as a national leader on renewable energy, energy efficiency, and demand response investments while ensuring its energy portfolio can endure extreme circumstances and remains affordable and reliable for customers. The Resource Plan recommendations were developed via input from the community utilizing a customer survey with 7500+ customer respondents and diverse Community Stakeholder meetings as well as extensive work with the Electric Utility Commission. Reliability was considered the highest priority by the respondents to the survey and by participants in the stakeholder meeting followed by affordability …

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Dec. 2, 2024

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Dec. 2, 2024

Item 1- EUC Draft Amendments to Austin Energy's Resource, Generation, and Climate Protection Plan original pdf

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Amendments offered by Commissioner White and Commissioner Reed To offer in this order 1. On page 2 and on page 10, add the following to the list of bullet points: “Aligning with City of Austin climate goals - With the climate crisis worsening, it is critical that Austin Energy do everything possible to reduce and eliminate greenhouse gas emissions at point sources and upstream to align with the goals of the Austin Climate Equity Plan, which is heavily reliant on electrifying other sectors with carbon-free electricity to be provided by Austin Energy.” (White) 2. On page 3, make the following edits: “Lead with Energy Efficiency -Austin Energy will lead with energy efficiency as the first priority to reduce energy needs during peak times. With more than 40 years of industry-leading experience, we will continue to expand award- winning programs and promote energy efficiency that lowers customer energy use, sustains customer comfort and reduces electric bills. Austin Energy plans to save 9751,000 MW by 2027. In 2027, we will addshift to tracking avoided greenhouse gas for our energy efficiency programs. Austin Energy will continue to report on the MW reduced from energy efficiency programs in all sectors.” (Reed) 3. On page 3, make the following edit: “Move from Megawatt Reduction toAdd Greenhouse Gas Avoidance — Austin Energy will add atransition to focus on greenhouse gas avoidance as a primary goal, in addition to megawatt reduction, for many of our demand-side management programs, in support of decarbonization.(Reed) 4. On page 3, make the following edit: “ Incentivize Customer-Sited Batteries — Austin Energy will develop and provide incentives for customer-sited battery storage to maximize benefits to customers and the electric grid, including adoption of a tariff that allows all customer classes to provide the utility access to customer-sited batteries. (White) 5. On page 4, make the following edits: “Avoid Retiring Local Generation Prematurely (Sand Hill and Decker) — If needed, Austin Energy will maintain our existing generation capacity at Sand Hill and Decker while seeking opportunities to replace these polluting resources with clean energy resourcesincrease efficiencies, reduce emissions and reduce costs for customers. Every effort will be made to replace all AE’s natural gas generation capacity with clean energy resources by 2035.” (White) 6. On page 4, strike the following text: “Pursue Additional, More Efficient Natural Gas 7. Peaker Units — Austin Energy should build or contract for additional peaker units in support …

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Dec. 2, 2024

Item 1: EUC Recommended Amendments to Austin Energy's Resource, Generation, and Climate Protection Plan original pdf

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EUC Amendments and Results to Resource Generation Plan 1. On page 2 and on page 10, add the following to the list of bullet points: “Aligning with City of Austin climate goals - With the climate crisis worsening, it is critical that Austin Energy do everything possible to reduce and eliminate greenhouse gas emissions at point sources and upstream to align with the goals of the Austin Climate Equity Plan, which is heavily reliant on electrifying other sectors with carbon-free electricity to be provided by Austin Energy.” (White) NOT OFFERED 2. On page 3, make the following edits: “Lead with Energy Efficiency -Austin Energy will lead with energy efficiency as the first priority to reduce energy needs during peak times. With more than 40 years of industry-leading experience, we will continue to expand award- winning programs and promote energy efficiency that lowers customer energy use, sustains customer comfort and reduces electric bills. Austin Energy plans to save 9751,000 MW by 2027. In 2027, we will shift to tracking avoided greenhouse gas for our energy efficiency programs. Austin Energy will continue to report on the MW reduced from energy efficiency programs in all sectors.” (Reed) NOT OFFERED (see item 24 modified version) 3. On page 3, make the following edit: “Move from Megawatt Reduction toAdd Greenhouse Gas Avoidance — Austin Energy will add atransition to focus on greenhouse gas avoidance as a primary goal, in addition to megawatt reduction, for many of our demand-side management programs, in support of decarbonization.(Reed) NOT OFFERED (see item 24 modified version – added reporting but not MW goal) 4. On page 3, make the following edit: “Incentivize Customer-Sited Batteries — Austin Energy will develop and provide incentives for customer-sited battery storage to maximize benefits to customers and the electric grid, including adoption of a tariff that allows all customer classes to provide the utility access to customer-sited batteries. (White) NOT OFFERED (corresponding item adopted) 5. On page 4, make the following edits: “Avoid Retiring Local Generation Prematurely (Sand Hill and Decker) — If needed, Austin Energy will maintain our existing generation capacity at Sand Hill and Decker while seeking opportunities to replace these polluting resources with clean energy resourcesincrease efficiencies, reduce emissions and reduce costs for customers. Every effort will be made to replace all AE’s natural gas generation capacity with clean energy resources by 2035.” (White) NOT OFFERED (corresponding item adopted) 6. On page …

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Nov. 18, 2024

Customer Energy Solutions FY 24 Savings Report original pdf

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Energy Efficiency Services EES- Appliance Efficiency Program EES- Home Energy Savings - Rebate EES- AE Weatherization & CAP Weatherization - D.I. * EES- School Based Education * EES- Strategic Partnership Between Utilities & Retailers * EES- Multifamily Rebates EES- Multifamily WX-D.I.+ EES- Commercial Rebate EES- Small Business Energy Efficiency TOTAL Demand Response (DR) - Annual Incremental DR- Power Partner DR- Commercial Demand Response (frmly Load Coop) Demand Response (DR) TOTAL Green Building GB- Residential Ratings GB- Residential Energy Code GB- Multifamily Ratings GB- Multifamily Energy Code GB- Commercial Ratings GB- Commercial Energy Code Green Building TOTAL CES MW Savings Grand TOTAL Residential Totals Commercial Totals Non-Public - AE # Customer Energy Solutions FY24 YTD MW Savings Report As of September 2024 Participant Type Participants To Date MWh To Date MW Goal 2.60 0.90 0.44 0.30 1.75 0.65 1.00 6.00 2.00 15.64 MW Goal 6.40 2.00 8.40 MW Goal 0.26 1.63 3.00 6.00 4.20 3.90 19.00 MW To Date 2.41 0.37 0.63 0.07 0.00 3.31 0.96 3.57 0.89 12.21 MW To Date 3.33 3.33 MW To Date 0.40 1.63 1.79 6.00 5.27 3.90 18.99 Percentage 93% 41% 144% 23% - 510% 96% 59% 44% Percentage 52% 0% Percentage 152% 100% 60% 100% 125% 100% Customers Customers Customers Products Products Apartments Apartments Customers Customers Devices Customers Customers Customers Dwellings Dwellings 1,000 sf 1,000 sf 4,450.92 514.90 1,224.85 358.00 6.83 8,229.88 2,568.27 9,249.70 1,769.79 28,373.14 0 0.00 464 2,253 5,091 9,066 10,194 12,664 39,732 Rebate Budget $ 1,500,000 $ 1,600,000 $ 2,577,000 $ 350,000 $ 1,250,000 $ 900,000 $ 1,800,000 $ 2,250,000 $ 1,100,000 $ 13,327,000 Spent to Date $ 1,454,899 $ 716,095 $ 7,056,794 $ 88,403 $ 1,005 $ 4,055,353 $ 1,513,135 $ 2,135,775 $ 669,437 $ 17,690,896 Rebate Budget $ 1,600,000 $ 2,000,000 $ 3,600,000 $ 254,230 $ 254,230 $ 9,300 $ - $ 47,000 $ - $ 56,300.00 $ - 3,331 336 912 1,595 670 9,313 5,499 135 82 21,203 2,344 2,344 504 2,029 5,179 11,942 5,123 14,051 19,654 0 Participant Type Participants To Date MWh To Date Participant Type Participants To Date MWh To Date Rebate Budget Spent to Date MW Goal 43.04 MW To Date 34.53 Percentage Participant Type Participants To Date MWh To Date 43,201 68,105.14 Rebate Budget $ 16,983,300 Spent to Date $ 17,945,126 15.93 19.11 13.11 24.96 82% 131% 26,533 36,295 20070.83 37231.82 $ $ 11,577,000 2,067,319 $ $ 15,139,914 3,350,000 Thermal Energy Storage TOTAL …

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Nov. 18, 2024

Agenda original pdf

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REGULAR MEETING OF THE ELECTRIC UTILITY COMMISSION November 18, 2024 ▪ 6:00 PM AUSTIN ENERGY HEADQUARTERS/SHUDDE FATH CONFERENCE ROOM 4815 MUELLER BLVD AUSTIN, TEXAS Some members of the Electric Utility Commission maybe participating by videoconference. Public comment will be allowed in-person or remotely by telephone. Speakers may only register to speak on an item once either in-person or remotely and will be allowed up to three minutes to provide their comments. Registration no later than noon the day before the meeting is required for remote participation. To register contact Amy Everhart, at Amy.Everhart@AustinEnergy.com or via phone at 512-322-6087. AGENDA Members: Dave Tuttle, Chair Kaiba White, Vice Chair Ayo Akande Raul Alvarez Cesar Benavides Jonathon Blackburn Randy Chapman Chris Kirksey Cyrus Reed Joshua Rhodes Vacant CALL MEETING TO ORDER PUBLIC COMMUNICATION: GENERAL The first 5 speakers signed up prior to the meeting being called to order will each be allowed a three-minute allotment to address their concerns regarding items not posted on the agenda. APPROVAL OF MINUTES 1. Approve the minutes of the Electric Utility Commission Regular Meeting on October 21, 2024. DISCUSSION AND ACTION ITEMS 2. Recommend approval of a resolution authorizing the filing of eminent domain proceedings and payment to acquire the property interests needed for the Cap Ex South, CKT987&1031 Structure Relocation 2021 Project for the public use of relocating various structures along the existing circuits 926, 927, 987, and 988 requiring relocation to accommodate the Texas Department of Transportation expansion of Interstate Highway 35 (I-35) as part of its I-35 Capital Express program, requiring the acquisition of 0.3596 of one acre (15,662 square feet) of permanent electric transmission and distribution easement, being out of the Santiago Del Valle Survey, Abstract No. 24, being a portion of the remainder of Lot 1, Block A, Amended Plat of Lots 1, 2, 5 and 6 of the South Bend Subdivision, a Subdivision recorded November 13, 2001, in Document No. 200100339, Official Public Records, Travis County, Texas, currently appraised at $839,319 subject to an increase in value based on updated appraisals or a Special Commissioners’ award. The owner of the needed property is the Housing Authority of the City of Austin. The property is located at 8515 South I-35, Austin, Texas 78744. The property is currently appraised at $839,319 and the general route of the project is along Interstate-35 from State Highway 71 south to State Highway 45. Funding: Funding is …

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Nov. 18, 2024

Item 2- RCA: Eminent Domain original pdf

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..Body Posting Language ..Title Approve a resolution authorizing the filing of eminent domain proceedings and payment to acquire the property interests needed for the Cap Ex South, CKT987&1031 Structure Relocation 2021 Project for the public use of relocating various structures along the existing circuits 926, 927, 987, and 988 requiring relocation to accommodate the Texas Department of Transportation expansion of Interstate Highway 35 (I- 35) as part of its I-35 Capital Express program, requiring the acquisition of 0.3596 of one acre (15,662 square feet) of permanent electric transmission and distribution easement, being out of the Santiago Del Valle Survey, Abstract No. 24, being a portion of the remainder of Lot 1, Block A, Amended Plat of Lots 1, 2, 5 and 6 of the South Bend Subdivision, a Subdivision recorded November 13, 2001, in Document No. 200100339, Official Public Records, Travis County, Texas, currently appraised at $839,319 subject to an increase in value based on updated appraisals or a Special Commissioners’ award. The owner of the needed property is the Housing Authority of the City of Austin. The property is located at 8515 South I-35, Austin, Texas 78744. The property is currently appraised at $839,319 and the general route of the project is along Interstate-35 from State Highway 71 south to State Highway 45. Funding: Funding is available in the Capital Budget of Austin Energy. Lead Department Financial Services Department Fiscal Note Funding is available in the Capital Budget of Austin Energy. For More Information: Michael Gates, Financial Services Department, (512) 974-5639; Brandon Williamson, Financial Services Department, (512) 974-5666; Amy Everhart, Austin Energy (512) 322-6087; Elaine Veselka, Austin Energy, (512) 322-6667; Tina Little, Austin Energy, (512) 322-6396. Council Committee, Boards, and Commission Action: November 18, 2024 - To be reviewed by the Electric Utility Commission. Additional Backup Information: Various structures along the existing circuits 926, 927, 987, and 988 require relocation to accommodate the Texas Department of Transportation (TxDOT) expansion of Interstate Highway 35 (I-35) as part of its I-35 Capital Express program. TxDOT’s I-35 Capital Express South project runs along I-35 from State Highway 71 south to State Highway 45. The relocation of the circuit adjacent to the properties located at 6900 and 6940 South I-35 requires the City to purchase an electric easement across Lots 1, 2, 5, and 6 of the South Bend Subdivision, a Subdivision recorded November 13, 2001, in Document No. 200100339, Official Public Records, …

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Nov. 18, 2024

Item 3- RCA: Electric Transmission and Distribution Easement original pdf

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..Body Posting Language ..Title Authorize negotiation and execution of all documents and instruments necessary or desirable to acquire a permanent electric transmission and distribution easement consisting of approximately 0.1952 acres (8,505 square feet) of land and a 12-month temporary construction easement consisting of approximately 0.0280 acres (1,220 square feet) of land, out of the William Cannon League Survey No. 19, Abstract No. 6, generally located at 8300 South Interstate Highway 35, Austin, Texas 78745, and being a portion of the remainder of Lot 3A, Mrs. Sosa J. Spillmann Estate, a subdivision recorded in Book 8, Page 15 of the Plat Records of Travis County, Texas, from Hazel Rose Investments Limited Partnership, in an amount not to exceed $549,900, including closing costs. Funding: Funding is available in the Capital Budget of Austin Energy. Lead Department Financial Services Department Fiscal Note Funding is available in the Capital Budget of Austin Energy. For More Information: Michael Gates, Financial Services Department, 512-974-5639; Brandon Williamson, Financial Services Department, 512-974-5666; Amy Everhart, Austin Energy, Director, Local Government Issues (512) 322- 6087; Elaine Veselka, Austin Energy, VP Electric Systems Engineering and Technical Services, (512) 322- 6667; Tina Little, Austin Energy, Director, Electric Systems and Shared Services, (512) 322-6396. Council Committee, Boards, and Commission Action: November 18, 2024 - To be reviewed by the Electric Utility Commission. Additional Backup Information: Various structures along the existing circuits 926, 927, 987, and 988 require relocation to accommodate the Texas Department of Transportation (TxDOT) expansion of Interstate Highway 35 (I-35) as part of its I-35 Capital Express program. TxDOT’s I-35 Capital Express South project runs along I-35 from State Highway 71 south to State Highway 45. The relocation of the circuit adjacent to the property at 8300 South I-35 requires the City to purchase an electric easement and a temporary construction easement out of the William Cannon League Survey No.19, Abstract No.6, Travis County, Texas, being a portion of the remainder of Lot 3A, Mrs. Sosa J. Spillmann Estate, a subdivision recorded October 15, 1956, in Book 8, Page 15 of the Plat Records, Travis County, Texas. An independent, third-party appraisal was procured to establish the fair-market value of the proposed acquisition. The appraisal supports the purchase price of $545,659. The amount of the purchase price plus closing costs is not to exceed $549,900.

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Nov. 18, 2024

Item 4- RCA: Professional Service Agreement original pdf

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..Body Posting Language ..Title Authorize negotiation and execution of an amendment to the professional services agreement for engineering services for the Austin Energy Staff Augmentation Engineering and Related Engineering Services for Electric System Engineering and Technical Services Rotation List with the following two firms (or other qualified responders): HDR Engineering, Inc. and Allegis Group Holdings, Inc. in the amount of $22,500,000 for a total contract amount not to exceed $70,875,000. Funding: -Funding is available in the Capital Budget of Austin Energy. Lead Department Financial Services Department. Managing Department Austin Energy. Amount and Source of Funding Funding is available in the Capital Budget of Austin Energy. Purchasing Language: Two contracts were awarded through a qualifications-based selection process. MBE / WBE: This amendment will be awarded in compliance with City Code 2-9B (Minority Owned and Women Owned Business Enterprise Procurement Program). Current participation to date is 3.85% MBE and 2.98% WBE. Prior Council Action: September 1, 2022 - Council approved an amendment to the professional services agreement with HDR Engineering, Inc. and Allegis Group Holdings, Inc. for the AE Staff Augmentation, Engineering and Related Engineering Services for Electric System Engineering and Technical Services Rotation List. June 10, 2021 - Council approved a professional services agreement with Allegis Group Holdings, Inc., for the AE Staff Augmentation, Engineering and Related Engineering Services for Electric System Engineering and Technical Services Rotation List. March 4, 2021 - Council approved a professional services agreement with HDR Engineering, Inc., and POWER Engineers, Inc. for the AE Staff Augmentation, Engineering and Related Engineering Services for Electric System Engineering and Technical Services Rotation List. For More Information: Direct questions regarding this Recommendation for Council Action to the Financial Services Department – Central Procurement at: FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500. Council Committee, Boards and Commission Action: November 18, 2024 – To be reviewed by the Electric Utility Commission. Additional Backup Information: The firms serve as professional consultants, providing technical consultation and advice for the Electric System Engineering and Technical Services group of Austin Energy. Services generally include producing turnkey project and construction drawing packages, as well as providing engineering, technical and drafting personnel to augment Austin Energy workspaces. The work products produced by this contract directly help Austin Energy safely deliver clean, affordable, and reliable energy to customers. These services include, but are not limited to, the following: • Transmission Design • Substation Design • Switchyard Design for Clean Energy Interconnects • Relay …

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Nov. 18, 2024

Item 5- Draft Recommendation on AE Resource Plan original pdf

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Electric Utility Commission Resolution 20241118-XXX on Austin Energy Resource Plan WHEREAS, on August 8, 2019, the Austin City Council adopted a resolution declaring a climate emergency and calling “for an immediate emergency mobilization to restore a safe climate” and directing the city manager to take a number of steps to accelerate local greenhouse gas emissions reductions, including from Austin Energy; and WHEREAS, in 2020, the Austin City Council adopted the Austin Energy Resource, Generation and Climate Protection Plan to 2030, which states that “Austin Energy will maintain an energy supply portfolio sufficient to offset customer demand while eliminating carbon and other pollutant emissions from its electric generation facilities as rapidly as feasible within the limitations set by the Austin City Council.” and states that “and all generation resources will be carbon-free by 2035;” and WHEREAS, the Austin Energy Resource, Generation and Climate Protection Plan to 2030 also states that “Austin Energy will no longer purchase, contract for or build long-term generation or storage resources that emit new carbon”; and WHEREAS, in 2021, the Austin City Council adopted the Austin Climate Equity Plan, which includes community-wide greenhouse gas reduction goals to achieve net-zero emissions by 2040, with about 75% reduction by 2030; and WHEREAS, electrification is a key strategy for reducing and eliminating greenhouse gas emissions in many sectors and Carbon-Free electricity is needed to achieve those goals; and WHEREAS, on June 8, 2023, the Austin City Council adopted a resolution endorsing the Fossil Fuel Non-Proliferation Treaty and a plan for “transitioning to a 100 percent clean energy economy, phase out fossil fuel production, and invest in communities on the frontlines of environmental injustice;” and WHEREAS, ground level ozone and particulate matter air pollution in the Austin region already exceed the health-based standards set by the U.S. Environmental Protection Agency and CAPCOG has identified that increased NOx emissions from electric generating units, including Austin Energy's power plants, as highly correlated with high local ozone measurements; and WHEREAS, the Austin Energy Resource, Generation and Climate Protection Plan to 2030 references an affordability goal and affordability remains important to many customers, but the workshops that Austin Energy hosted as part of this process to update the Austin Energy Resource, Generation and Climate Protection Plan revealed that a large majority of participants are supportive of allowing rate increases beyond the current goal of two percent per year, so long as low-income customers are shielded …

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Nov. 18, 2024

Item 6- Briefing: Austin Energy Quarterly Financial Report original pdf

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Austin Energy Quarterly Financial Report 4th Quarter FY 2024 Stephanie Koudelka Austin Energy Director of Finance November 2024 © Austin Energy Agenda Executive Summary Financial Health Budget to Actual Financial Statements Market and Industry Analyses Quarterly Financial Report 2 Executive Summary FY24 Operating Results Bond Rating Operating income was unfavorable compared to budget by 6%. Austin Energy’s AA- bond rating was affirmed, remaining below target AA. Financial Policies Power Supply Adjustment Austin Energy is not in full compliance as of September. The PSA was $56M over recovered as of September. 3 Financial Health S&P Bond Rating (Target AA) Days Cash on Hand Debt Service Coverage Operating Margin Debt to Capitalization Minimum > 150 Days Minimum > 2.5x Minimum > 10% Minimum < 50% Actual 159 Days Actual 2.2x Actual 5% Actual 57% AA- Stable Outlook • Recent delayed cost recovery and low liquidity • Dynamic use of PSA mechanism and annual base rate increases • Diversified generation and historically limited exposure 4 Austin Energy Quarterly Financial Report Financial Statements 5 Budget to Actual – Fund Summary Millions of $ Base Revenue Power Supply Revenue Other Operating Revenues Total Operating Revenues Power Supply Expense Other Operating Expenses Total Operating Expenses Operating Income (Loss) Transfers In Interest Revenue Debt Service Income (Loss) Before Transfers Out General Fund Economic Development Other Transfers Reserve Transfers - Internal CIP Transfer - Internal Actual Budget Favorable (Unfavorable) $ 696 $ 697 $ (1) (62) 6 (57) 66 (33) 33 (24) 0 11 (7) (20) 0 0 0 (61) (2) 548 452 1,696 484 817 1,301 395 5 33 (178) 255 (115) (10) (51) (80) (82) 610 446 1,753 550 784 1,334 419 5 22 (171) 275 (115) (10) (51) (19) (80) Excess (Deficiency) of Revenues $ (83) $ - $ (83) 6 Budget to Actual - Power Supply Adjustment s n o i l l i m $ 80 $ 60 40 20 0 Actual Cost Budget Cost PSA Revenue 7 Actual to Budget Analysis Capital Improvement Plan Type of Project 107% of Spend Plan Type of Financing 20% 24% 56% Distribution District Cooling Transmission Joint Projects General Substations Other Power Generation $0 $50 $100 $150 $200 $250 Millions of $ Contributions in Aid of Construction Cash Debt FY 2024 CYE Year-to-Date 8 Income Statement $ in Millions Operating Revenues Power Supply Operating Revenue Power Supply Operating Expense Operating Expenses Depreciation Expense Operating Income (Loss) Other …

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Nov. 18, 2024

Item 7- Briefing: Operations Report FY24Q4 original pdf

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Austin Energy FY2024 Q4 Operations Update Lisa Martin Deputy General Manager & Chief Operating Officer November 2024 © Austin Energy Agenda Executive Summary Environmental Performance Reliability Performance Grid Resilience Strategic Goal Quarterly Operations Update 2 Executive Summary Renewable production 34% aggregate renewable production as a percentage of load in Q4. Carbon-free production 53% carbon-free generation as a percentage of load in Q4. High availability of generators Resources at Sand Hill, FPP, and STP all exhibited high availability to match summer demand. Reliability performance trend stable Performance metrics show slightly better or similar outage duration and frequency compared to last quarter. 3 Austin Energy Operations Update Environmental Performance 4 Carbon-Free Generation as a Percentage of Load Monthly Data 53% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Nuclear Renewables 5 Carbon-Free Generation as a Percentage of Load Rolling 12-Month Average Data 66% 6 Austin Energy Operations Update Reliability Performance 7 Electric Vehicle Charging Station Operations EV Charging Operations Updates • Overall charging network had an uptime of 96% last quarter • DC Fast Charging had a cumulative uptime of 84.8% over the last quarter • Austin Energy actively engaged ChargePoint and Smart Charge America to perform reactive and quarterly preventative maintenance Network Health as of 10/29/24 0.9% 12.8% 86.3% Available Faulted Unreachable Faulted – Hardware or Software issue detected at the time of report Unreachable – WiFi or cellular issue detected with the station within the last 24 hours 8 Electric Vehicle Charging Station Operations Charging Sessions EV Charging Station Usage • Averaging over 34,500 charging sessions per month • 681 MWh of energy dispensed on average each month • Peak usage time: 9 a.m. – 1 p.m. Average Session Length 9 Generator Commercial Availability Generation Resource Sand Hill Combined Cycle Fayette Power Project South Texas Project Commercial Availability Summer Target % Commercial Availability Actual % Q4 FY24 Avg 95 97 100 98 97 96 10 Net Generation and Load Analysis FY2024 Q4 Generation vs. Consumption Cost by Fuel Type Consumption vs. Generation (MWh) Power Generation Cost by Fuel Type Nuclear Coal NG Renewable 7% 9% 18% 66% Nuclear Coal NG Renewable G E N E R ATION CON S UMPTION Historical Q3 System Peak Demand (MW) Power Generation as Percent of Consumption Renewable 1,489,477 680,511 374,692 858,888 Natural Gas Coal Nuclear Other 47% 4,451,333 Renewable …

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Nov. 18, 2024

Item 8- Briefing: Resource Generation Plan original pdf

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Resource, Generation and Climate Protection Plan to 2035 Electric Utility Commission Update Lisa Martin Deputy General Manager and Chief Operating Officer November 18, 2024 © Austin Energy Building a Bridge to Our Energy Future 2 Mission for the 2035 Plan We must meet Austin’s rising energy needs while enabling an equitable clean energy transition reflecting our community’s values of reliability, affordability and environmental sustainability. 3 33 Current Day Challenges The problems we need to solve are immediate Increases in extreme weather & climate risk Growth in population and energy consumption Replacing local power generation lost from plant retirements ERCOT market changes and increasing costs Transmission congestion and volatile pricing to import energy Financial Risk 4 How Did We Get Here? Summer Peak Demand Record August 2024 3,135 MW Winter Peak Demand Record January 2024 2,700 MW Retire Decker Steam Unit 1 September 2020 300 MW Retire Decker Steam Unit 2 March 2022 425 MW Summer Peak Demand Record August 2023 3,067 MW 2020 2021 2022 2023 2024 Plan to 2030 Adopted March 2020 Winter Storm Uri February 2021 Congestion Costs $135 Million Congestion Costs $150 Million ERCOT Market Changes & Increased Energy Costs ERCOT Market Telling Us: • Local Reliability Issues, Increased Outage Risk • Transmission Congestion, Increased Cost 5 Our Responsibility Austin Energy must adapt to a changing energy landscape to expand achievements of previous resource generation plans and further our mission to safely deliver clean, affordable, reliable energy and excellent customer service. 6 Community and Industry Expert Driven 2 Community Stakeholders Rifeline Facilitation Energy Research Webber Energy Group (UT) Demand Side Mgmt. & Solar Study* DNV Energy Insights 1 4 Portfolio Modeling* Ascend Analytics & Austin Energy Requests for Proposals Carbon-Free & Renewable Developers *Scope informed by EUC Industry Research Group Support E Source & EPRI 7 City of Austin District 2 Residential Customers Tri-City Region Solar and Storage Coalition CCARE Homeowners United for Rate Fairness (HURF) 8 Community Value Statements Reliability Providing consistent and predictable electric service that will power our community as it continues to grow Assessing the impacts and promoting fairness of costs for customers while continuing to provide the public-power benefits that enhance our community’s quality of life Affordability Environmental Sustainability Maintaining flexibility in support of clean and innovative technologies and programs while taking a holistic assessment of the community and environmental impacts Evaluating and expanding access to the services Austin Energy provides so …

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