Electric Utility Commission Regular Meeting of the Electric Utility Commission - This meeting to be held by videoconference.

Agenda — original pdf

Versión en español a continuación. Meeting of the Electric Utility Commission February 8, 2021 The Electric Utility Commission is to be held February 8, 2021 with Social Distancing Modifications Public comment will be allowed via telephone; no in-person input will be allowed. All speakers must register in advance of Sunday, February 7 by Noon. All public comment will occur at the beginning of the meeting. To speak remotely at the Electric Utility Commission meeting, members of the public must: •Call or email the board liaison at 512-497-0966 or jeff.vice@austinenergy.com no later than noon, Sunday, February 7. The information required is the speaker name, the telephone number they will use to call into the meeting, and their email address (so that the dial-in info may be provided). If speaking on a specific item, residents must indicate the item number(s) they wish to speak on and whether they are for/against/neutral. Speakers on any topic that is not a posted agenda item will be limited to the first 10. •Once a request to speak has been made to the board liaison, the information to call on the day of the scheduled meeting will be provided either by email or phone call. •Speakers must call in at least 15 minutes prior to meeting start in order to speak, late callers will not be accepted and will not be able to speak. •Speakers will be placed in a queue until their time to speak; each speaker will have up to three minutes to speak. •Handouts or other information may be emailed to jeff.vice@austinenergy.com by noon the day before the scheduled meeting. This information will be provided to Board and Commission members in advance of the meeting. •If this meeting is broadcast live, residents may watch the meeting here: http://www.austintexas.gov/page/watch-atxn-live la Reunión del Electric Utility Commission FECHA de la reunion (8 de Febrero 2021) La junta se llevará con modificaciones de distanciamiento social Se permitirán comentarios públicos por teléfono; no se permitirá ninguna entrada en persona. Todos los oradores deben registrarse con anticipación (7 de Febrero antes del mediodía). Todos los comentarios públicos se producirán al comienzo de la reunión. Para hablar de forma remota en la reunión, los miembros del público deben: junta en 512-497-0966 OR • Llame o envíe un correo electrónico al enlace de jeff.vice@austinenergy.com a más tardar al mediodía (el día antes de la reunión). La información requerida es el nombre del …

Item 15: Q1FY21 Financial Briefing — original pdf

Austin Energy Quarterly Financial Report 1st Quarter FY 2021 (October – December) Mark Dombroski Chief Financial Officer February 8, 2021 © 2018 Austin Energy Disclaimer This information is unaudited and should be read in conjunction with the audited Comprehensive Annual Financial Reports for the City of Austin, when published on: http://austintexas.gov/service/current-comprehensive-annual-financial-report 2 QUARTERLY Financial Report Agenda Executive Summary Financial Policy Compliance Financial Performance Measures Actual to Budget Analysis Financial Statements Market and Industry Analyses 3 Austin Energy Quarterly Financial Report Executive Summary 4 Executive Summary Substantially compliant with all financial policies. Contingency and Capital Reserve balances below minimums but total cash above minimum of $457m. $ 319 Million Revenues Operating revenues at December are 1.4% under budget due to decreased usage. Generally meeting financial metrics supporting AA credit rating (reaffirmed October 2020). Received credit upgrade from Fitch Ratings in May 2019. $280 Million Expenses Operating expenses are within 1.9% of budget primarily driven by timing of expenses in the first quarter. Balance sheet is liquid and adequately capitalized. Cash decreased $20m due to increased accounts receivable and lower sales. Weather continues to be the major driver for energy consumption. The COVID pandemic has shifted consumption and demand for both residential and commercial customers. This information is unaudited and should be read in conjunction with the audited Comprehensive Financial Reports for the City of Austin, when published on www.austintexas.gov/financeonline/finance/main.cfm 5 Austin Energy Quarterly Financial Report Financial Policy Compliance 6 Financial Policy Compliance Financial policies are memorialized and adopted by ordinance each year during the budgeting process Compliance Debt Reserves Operating Non-Compliance Debt Policies Reserves Policies Operating Policies Full Compliance Partial Compliance Full Compliance Contingency and Capital Reserve balance below minimums but total cash above minimum of $457m This information is unaudited and should be read in conjunction with the audited Comprehensive Financial Reports for the City of Austin, when published on www.austintexas.gov/financeonline/finance/main.cfm 7 Austin Energy Quarterly Financial Report Financial Performance Measures 8 Financial Performance Measures AA Standard & Poor’s Global Ratings Achieved November 2018 Excessive Liquidity Coverage Efficiency Leverage Deficient Days Cash on Hand Debt Service Coverage Ratio Operating Margins Debt to Capitalization Minimum > 150 Days Minimum > 2.0 Minimum > Minimum < 50% Actual 223 Days Actual 2.0 Actual -4% Actual 53% Excludes General Fund Transfer This information is unaudited and should be read in conjunction with the audited Comprehensive Financial Reports for the City of Austin, when published …

Item 16: Utility Bill Relief Update — original pdf

Item 16 City of Austin Utilities COVID-19 Relief Funding Update Kerry Overton Deputy General Manager, Chief Customer Officer Austin Energy 2/08/2021 - EUC © 2018 Austin Energy Agenda • Highlights • Utility Bill Relief Funding (Council approved April 9th)* • Customer Communication • Current Trends • Payment Arrangements • Customer Response • Aging Trends • Next Steps *Utility bill assistance is still available at ww.austinbillhelp.com 2 Austin Energy 2020 Pandemic Response April 2020 Council Approved Utility Bill Relief Funding Disconnections and Late Fees Suspended May – Dec 2020 AustinBillHelp.com launched Multi-channel communication and outreach Engaged with community partners and expanded Plus 1 Current State AustinBillHelp.com still available Late fees resumed to encourage customer contact Austin Energy goals to date have focused on offering utility bill assistance through relief programs and expanded payment options. 3 Utility Bill Relief Funding: COVID-19 As part of COA Utilities’ COVID-19 response, an initial $10M was added in April 2020 to the Plus 1 fund and an additional $10M will be made available in 2021. Plus 1 Funding & Payments (FY2019-2021) 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 - 4,293 $1,800,000 3,526 $1,600,000 $1,692,390 $1,186,303 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- # Payments $ Funding News releases Monthly Social Media Communications Mass marketing for Austinbillhelp. com Thousands of Direct Letters, Calls, E-mails, and Direct Flyers Communication Efforts Since April 2020 Austin Energy has encouraged customer contact by:  Emphasizing assistance options for residential  Highlighting debt management tools for all  Targeting campaigns for unpaid and accruing large balances In Focus: Marketing communications 5 Payment Arrangement Trends With the availability of a ‘Pandemic PA’ allowing up to 36 months of repayment opportunity and additional assistance funding, we are asking customers to reach us to address increasing aging balances. Monthly Payment Arrangement Allocation (Total # / Total $) s d n a s u o h T s t n e m e g n a r r A t n e m y a P f o r e b m u N s n o i l l i M t n u o m A r a l l o D Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Started AR > 30 Days Last Year (Dec 2019) This Month (Dec 2020) PA Balances PA Count PA …

Item 17: 1QFY21 Operations Report — original pdf

Austin Energy Operational Update Q1 FY21 Item 17 Electric Utility Commission Sidney Jackson Chief Operating Officer, Austin Energy February 08, 2021 © 2018 Austin Energy 1 Austin Energy Operational Update Vision Powering a cleaner, brighter future with customer- driven, community-focused solutions. Mission Safely deliver clean, affordable, reliable energy and excellent customer service. Discussion Topics 1. Power Generation & Renewables 2. District Cooling Updates 3. System Reliability 4. Other:  Jan 10th Outage Event in review  Renewable updates 2 Austin Energy Operational Update Performance Commercial Availability & Start Success Generation Resource Target Seasonal Commercial % Availability Decker Steam Units Sand Hill Combined Cycle Fayette Units South Texas Project 95 95 97 100 Commercial Availability Actuals (%) Q4 FY20 AVG Q1 FY21 AVG 89 95 100 100 39 69 97 100 Start Success Simple Cycle Start Success 99 Start Success Target(%) Start Success Actuals (%) Q1 FY21 Q4 FY20 AVG AVG 100 100 3 Net Generation and Load Analysis FY 2021 Q1 Power Generation Cost by Fuel Type Consumption vs. Generation (GWh) 19% 7% 16% 59% 3,134 4,000 3,000 2,000 1,000 0 3,353 440 940 679 1,294 Renewables Coal *Costs include fuel for generation, fuel transportation, renewable Power purchases agreements Nuclear Natural Gas Consumption Generation Renewables Coal Nuclear Natural Gas Historical FY Q1 System Peak Demand (MW) Renewable Power as Percent of Consumption 3,000 2,800 2,600 2,400 2,200 2,000 2,338 2,274 2,238 2,220 2,437 2017 2018 2019 2020 2021 59% Non-renewables Renewables 41% This information is unaudited and should be read in conjunction with the audited Comprehensive Financial Reports for the City of Austin, when published on 4 Renewable Resources Update Renewable Generation as a Percentage of Load 50% 50% 49% 49% 46% 43% 38% 33% 35% 35% 48% 41% Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 5 60% 50% 40% 30% 20% 10% 0% District Energy & Cooling Activities District Cooling Plant #3 (Downtown, Crescent Tract) Constructing 10,000 ton chilled water plant for the Downtown System • Chiller building and cooling towers are complete • Start-up and commissioning of major mechanical and electrical equipment is ongoing • Art in Public Places structure erection is complete • Remaining work: finishing aesthetic façade, site paving, landscaping, and cleanup • On-Target for substantial completion in April 2021 Austin Community College Highland Campus Constructing a 6,000 ton chilled water plant with Thermal Energy Storage • Chillers, switchgear, pump, piping, …

Item 18; REACH Update — original pdf

Item 18 2020 REACH Update Electric Utility Commission Briefing Erika Bierschbach VP, Energy Market Operations & Resource Planning February 8, 2021 © 2018 Austin Energy Carbon Reduction - REACH • Reduce Emissions Affordably for Climate Health (“REACH”) incorporates a cost of carbon in the generation dispatch price and reduces generation output during low-margin periods while making resources available for high-margin periods. • Allocate an annual budget amount of approximately 2% of the prior year’s PSA • The savings for 2020 after plan approval was expected to be 1.36 million metric tons • REACH was designed to reduce the utility’s carbon emissions by 30% or approximately 4 million metric tons between now and Austin Energy’s exit from FPP. • Thereafter, the REACH plan is expected to reduce carbon emissions by 8% each year while maintaining the flexibility to protect our customers’ rates in periods of high prices in the wholesale market until achieving zero carbon emissions by 2035. 2 Resource Plan Carbon Emission Forecast vs. REACH CO2 Reduction 5,928,016 MT - CY2020 Resource Plan Carbon Emission Forecast 4,570,050 MT - CY2020 REACH Plan Carbon Emission Forecast DECKER STEAM UNITS RETIRE FPP EXIT ZERO FOSSIL ASSETS (2035 or sooner if economics dictate) 3 2020 Distribution of Price – Resource Plan Forecast v Actual Forecasted Average SPP = $28.36 Actual Average SPP = $21.61 s e c n e r u c c O f o # 1,000 900 800 700 600 500 400 300 200 100 0 4 Model to Market •Resource Plan Forecast - August 2019 • Goals derived from Base Forecast and Assumptions •COVID-19 Impacts Demand for Energy • Crude oil has negative monthly settlement for the first time in history •Natural Gas prices 26% lower than base assumption by ~25% • July NYMEX Natural Gas Settles $1.495 •Extremely mild 2020 Winter and mild end to the summer • 17th coolest September on record (out of 126) 5 NYMEX Natural Gas Daily Settlements $3.00 $2.80 $2.60 $2.40 $2.20 $2.00 $1.80 $1.60 $1.40 $1.20 $1.00 11/1/2019 12/1/2019 1/1/2020 2/1/2020 3/1/2020 6 LZ_AEN 15 Minute Real-time SPP ~ 97% of the intervals were below $30 per MWH s e c n e r u c c O f o # 450 400 350 300 250 200 150 100 50 0 7 Overall REACH Performance Resource Plan Forecast Emissions Economic (Tonnes) Emissions Actual (Tonnes) Emission Reduction (Tonnes) Percentage Below Forecast Total Coal 5,928,010 …

Item 19: Council Action Report — original pdf

Item 19 EUC Report re Council Action February 08, 2021 Items below recommended by EUC October 12; Council to review on date indicated in parenthesis. 11. (2/18) [Purchasing: Various depts; AE’s portion $1,350,000] Authorize award of a multi-term contract with Expert Relocation Services, LLC, to provide citywide moving and relocation services, for up to five years for a total contract amount not to exceed $5,783,500. Items below recommended by EUC January 11; Council approved on date indicated in parenthesis. 2. (1/27) [Capital Contracting] Authorize award and execution of a construction contract with Santa Clara Construction, Ltd.(MBE), for the Decker Dam Slough Repair project in the amount of $1,322,546 plus a $132,254.60 contingency, for a total contract amount not to exceed $1,454,800.60. 3. (2/4) [Purchasing] Authorize negotiation and execution of a contract with DNV GL USA, Inc., to provide a utility asset management software solution, maintenance and support, for a term of ten years in an amount not to exceed $800,000. 4. (2/4) [Purchasing] Authorize negotiation and execution of a multi-term contract with Power Cost, Inc., to provide market operations and settlement cloud solutions and related services, for up to 12 years for a total contract amount not to exceed $6,600,000. 5. (2/4) [Purchasing] Authorize award of a multi-term contract with High Tech Engineering Inc, to provide underground utility locating services, for up to five years for a total contract amount not to exceed $9,500,000. 6. (2/4) [Purchasing] Authorize an amendment to an existing contract with Mitsubishi Electric Power Products Inc, to provide a gas-insulated switchgear and related services, for an increase in the amount of $800,000, for a revised total contract amount not to exceed $6,800,000. 7. (2/4) [Austin Energy] Authorize expenditures for annual renewals of professional dues and memberships in national and state associations and organizations related to the electric utility industry, in an amount not to exceed $510,822. 10. (2/4) [Austin Energy] Authorize the negotiation and execution of a thirty six-month lease agreement with 726 LLC for a 6.685 acre portion of 8405 N. Lamar Blvd. more particularly described as Lot 3-B Amended Plat of Re-subdivision of Lot 3 CBP Commercial Subdivision, a subdivision recorded in Volume 87, Page 179A of the Plat Records of Travis County, Texas; and Lots 4 & 5, CBP Commercial Subdivision, a subdivision recorded in Volume 84, Page 109C of the Plat Records of Travis County, Texas for a temporary construction laydown yard …

Items 2-14: Draft RCAs — original pdf

Item 2 Posting Language ..Title Authorize negotiation and execution of an amendment to the professional services agreement with Stanley Consultants, Inc., for professional engineering services for the Rainey Street Gas Insulated Switchgear Substation Design (formerly Future Downtown Gas Insulated Switchgear Substation Design) in the amount of $1,436,894.58, for a total contract amount not to exceed $2,895,894.58. [Note: This amendment was awarded in compliance with City Code 2-9B (Minority Owned and Women Owned Business Enterprise Procurement Program). Current participation to date is 30.64% MBE and 15.96% WBE.] ..Body Lead Department Capital Contracting Office Managing Department Austin Energy Fiscal Note Funding is available in the Fiscal Year 2020-2021 Capital Budget of Austin Energy. Purchasing Language: Original contract was awarded through a qualifications-based selection process. Prior Council Action: December 7, 2017 – Council approved a professional services agreement with Stanley Consultants, Inc. for the Future Downtown Gas Insulated Switchgear Substation Design. For More Information: Inquiries should be directed to the City Manager’s Agenda Office, at 512-974-2991 or AgendaOffice@austintexas.gov. NOTE: Respondents to this solicitation, and their representatives, shall direct inquiries to Rolando Fernandez, 512-974-7749, Beverly Mendez, 512-974-3596, or the Project Manager, Tara Delagarza, 512-505- 7175. Council Committee, Boards and Commission Action: To be reviewed by the Electric Utility Commission on February 8, 2021. November 13, 2017 - Recommended by the Electric Utility Commission on a 7-0 vote, with Commissioners Fath and Hadden absent, and with two vacancies. Additional Backup Information: A new substation is needed at City-owned property at 806 ½ Lambie Street to serve recent Central Business District development and potential redevelopment along the Waller Creek area. The 35 kV network circuits in the Waller Creek area are now supplied out of the Seaholm and Brackenridge substations, which are unable to support the anticipated demand and load growth. Developing this new substation is critical before the Downtown area is fully developed. Additionally, this new substation will support load transfers necessary to complete upgrades at the Brackenridge substation as well as facilitate the conversion of some of the 69 kV facilities in this area to 138 kV operations. The original solicitation intended to encompass all professional engineering phase services through post construction services. Upon execution of the original contract, it became evident that Austin Energy’s estimated contract value was insufficient and additional authorization would be required. With more than 60% of the design phase complete, Austin Energy is confident in forecasting the remaining engineering …

Approved Minutes — original pdf

Electric Utility Commission February 8, 2021 Minutes The Electric Utility Commission (EUC) convened a regularly scheduled meeting via videoconference/Webex. Meeting called to order by Chair Hopkins at 1:05 p.m. Also present were Commissioners Boyle, Hadden, Reed, Stone, Trostle, Tuttle and Weldon. Commissioners Ferchill, Funkhouser and Wray were absent. Chair Hopkins recognized and thanked Commissioner Boyle for his service, as this is his final meeting. CITIZEN COMMUNICATION: GENERAL – Paul Robbins re Customer Assistance Program 1. APPROVAL OF MINUTES – Approve minutes of the January 11, 2021 regular meeting. Motion (Trostle) to approve minutes; seconded (Tuttle); passed on a vote of 8-0, with Commissioners Ferchill, Funkhouser and Wray absent. NEW BUSINESS – CONSENT ( ) = Target Council Meeting Date; [ ] = RCA Type Items 2-4, 6-9, and 11 – 13 unanimously recommended on consent (8-0, with Commissioners Ferchill, Funkhouser and Wray absent). Following discussion, the following items were recommended on a vote of 8-0, with Commissioners Ferchill, Funkhouser and Wray absent: Item 5: motion (Tuttle) to recommend; seconded (Reed)    Item 10: motion (Weldon) to recommend; seconded (Hadden) Item 14: motion (Reed) to recommend; seconded (Weldon) 2. (2/18) [Capital Contracting] Authorize negotiation and execution of an amendment to the professional services agreement with Stanley Consultants, Inc., for professional engineering services for the Rainey Street Gas Insulated Switchgear Substation Design (formerly Future Downtown Gas Insulated Switchgear Substation Design) in the amount of $1,436,895, for a total contract amount not to exceed $2,895,895. 3. (2/18) [Capital Contracting] Authorize award and execution of a construction contract with DynaGrid Construction Group, LLC, for Bluff Springs Substation in the amount of $7,407,380.03 plus a $740,380 contingency, for a total contract amount not to exceed $8,148,118.03. 4. (2/18) [Austin Energy] Authorize execution of 10-year extensions to existing electric service franchise agreements for the use of rights-of-way within other municipalities within the Austin Energy service territory, maintaining the payment amount of three percent of gross electric revenues from customers within each municipality. 1 5. (2/18) [Austin Energy and Austin Water] Approve an ordinance amending the fiscal year 2020-2021 budgets of Austin Water and Austin Energy to appropriate up to $10,000,000 for the utilities’ Plus-One payment assistance programs. 6. (3/4) [Purchasing] Authorize negotiation and execution of a contract with RecordPoint Software USA LLC, to provide Records365 enterprise electronic records management software solution, for a term of five years for a total contract amount not to …