Electric Utility Commission - Feb. 14, 2022

Electric Utility Commission Regular Meeting of the Electric Utility Commission

Agenda original pdf

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Electric Utility Commission February 14, 2022  6:00 PM Austin Energy Headquarters; 1st Floor; Shudde Fath Conference Room 4815 Mueller Blvd, Austin TX 78723 (Note: Some Commission members, presenters and public may be participating by videoconference.) AGENDA Members: Marty Hopkins, Chair (Casar) Dave Tuttle, Vice Chair (Alter) Marshall Bowen (Kelly) Randy Chapman (Pool) Cary Ferchill (Adler) Erik Funkhouser (Fuentes) Karen Hadden (Kitchen) Makenna Jonker (Harper- Madison) Cyrus Reed (Tovo) Kay Trostle (Ellis) Vacancy (Renteria) For more information, please visit: www.austintexas.gov/euc Reading and Action on Consent Agenda: Items 2-14 may be acted upon by one motion. No separate discussion or action on any of the items is necessary unless desired by a Commissioner. CALL MEETING TO ORDER CITIZEN COMMUNICATION: GENERAL Speaker must be present and will be allowed up to three minutes to provide their comments. 1. APPROVAL OF MINUTES – Approve minutes of the November 19, 2021 meeting. NEW BUSINESS – CONSENT ( ) = Target Council Meeting Date; [ ] = RCA Type 2. (3/3) [Purchasing – Multi-Departmental; AE’s portion approximately $12.7M] Authorize an amendment to a contract with Nalco Company LLC d/b/a Nalco Company for continued specialty chemical water treatment services, to increase the amount by $3,500,250 and to extend the term by one year, for a revised total contract amount not to exceed $14,687,500. 3. (3/3) [Purchasing] Authorize an amendment to a contract with SAP America Inc. to provide a continued subscription for talent, performance, and learning management software, to increase the amount by $198,000 and to extend the term by one year, for a revised total contract amount not to exceed $3,146,933. 4. (3/3) [Purchasing] Authorize award of a contract with Johnson Controls Inc d/b/a Johnson Controls to provide fire protection and maintenance services, for a term of five years in an amount not to exceed $2,000,000. 5. (3/3) [Purchasing] Authorize negotiation and execution of a multi-term contract with Power Grid Engineering, LLC to provide relay services, for up to five years in an amount not to exceed $6,000,000. 6. (3/3) [Austin Energy](T1) Approve a resolution authorizing the filing of eminent domain proceedings for the acquisition of real property rights consisting of a Temporary Construction Easement containing approximately 4,438 square feet of land, being a part of Lot A-4-1 of the Resubdivision of Lot 4-A of the Resubdivision of Lot A-1 of the Resubdivision of Lot “A”, Tempo North, a subdivision shown in a plat recorded …

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Item 1 Draft Minutes_11.08.2021 original pdf

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Item 1 Electric Utility Commission November 8, 2021 Minutes The Electric Utility Commission (EUC) convened a regularly scheduled meeting at Austin Energy Headquarters, with some members attending via videoconference/Webex. Meeting called to order by Vice Chair Tuttle at 6:10 p.m. Also present were Commissioners Bowen, Chapman, Ferchill, Funkhouser (v), Hadden (v), Reed, and Trostle. Chair Hopkins was absent and there are two vacancies. CITIZEN COMMUNICATION: Barbara and Danny Fetonte, Matt Weldon, Beki Halpin; Dale Bulla (re Item 22 / close FPP) Chair had all members briefly introduce themselves. 1. APPROVAL OF MINUTES – Approve minutes of the August 19, 2021 special-called meeting. Motion (Trostle) to approve minutes; seconded (Ferchill); passed on a vote of 8- 0, with Chair Hopkins absent and two vacancies. NEW BUSINESS – CONSENT ( ) = Target Council Meeting Date; [ ] = RCA Type Motion (Chapman) to recommend Items 2, 3, 5, 7-12, 14-17; seconded (Tuttle); passed on a vote of 8-0, with Chair Hopkins absent and two vacancies. Motion (Ferchill) to recommend Items 4 and 13; seconded (Trostle); passed on a vote of 8-0, with Chair Hopkins absent and two vacancies. Motion (Chapman) to recommend Item 6; seconded (Ferchill); passed on a vote of 8-0, with Chair Hopkins absent and two vacancies. 2. (11/18) [Purchasing] Authorize award of a contract with KBS Electrical Distributors Inc. to provide a station service voltage transformer in an amount not to exceed $67,000. 3. (11/18) [Purchasing] Ratify a contract with Control Components Inc, to provide an intermediate pressure drum control valve and spare parts, in the amount of $75,400. 4. (11/18) [Capital Contracting] Authorize negotiation and execution of a construction contract with MasTec North America, Inc., for Underground Electrical Civil Construction Indefinite Delivery/ Indefinite Quantity contract in the amount of $24,000,000 for an initial 2-year term, with four 1-year extensions of $12,000,000, for a total contract amount not to exceed $72,000,000. 5. (12/2) [Purchasing Multi Departmental; AE’s estimated portion is $6.3M] Authorize award of two contracts with Community Trucking LLC, and Green Dream International d/b/a GDI, to provide flexible base, surface rock and 3x5 rock, each for a term of five years for total contract amounts not to exceed $7,570,000, divided between the contractors. 6. (12/2) [Purchasing] Authorize an amendment to a contract with Texas Electric Cooperatives, for the continued purchase of electric meters for use throughout the Austin Energy service area, to increase the amount by $10,000,000 …

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Item 15: Update regarding Stakeholder Engagement, EV/Electric Ready, and Water Heating original pdf

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Item 15 Stakeholder Engagement EV/Electric Ready, Water Heating Kurt Stogdill Manager, Green Building & Sustainability February 14, 2022 © 2020 Austin Energy • EV-Ready & Electric-Ready What is EV/Electric-Ready?- provisions in design and construction that allow for easier conversion to appliances/vehicles fueled by electricity Electric-Ready example- allowing more space for larger heaters and running electric connections to accommodate the future installation of a high- efficiency electric water heater EV-Ready example- sizing electric service to allow dedicated breaker and running conduit from electric panel to garage to simplify future installation of EV charging infrastructure • The 2021 International Energy Conservation Code dropped EV/Electric- Ready during appeals process… • City staff determined amendments to ‘21 energy code were not appropriate means to pursue EV/Electric Ready at the time 2 Objectives/Focus Robust stakeholder discussion of potential recommendations for electric vehicle-ready, electric-ready and residential water heating • Scope - 3 areas of focus • Policy - to include code(s) • Programs - Austin Energy/City of Austin programs promoting electric vehicle readiness, electric-ready construction, high-efficiency electric water heating • Education - opportunities for education of community and work with industry to further electric/electric vehicle readiness and high-efficiency residential water heating 3 Output(s) • Summary of stakeholder recommendations in the areas of Policy, Programs, and Education • Report to RMC & EUC • Austin Energy will study recommendations and report to EUC & RMC 4 Stakeholder Composition • • • Interested community members • EUC & RMC Interested/relevant industry representatives Interested representatives of non-profits • Existing equity engagement channels, piloting new framework 5 • Virtual meetings Process • Review of current codes in place, relevant policy, technology, programs, affordability, Austin Energy/City limitations • Call on Subject Matter Experts from the City, industry, non-profits • Discussion of areas of opportunity, flesh them out as recommendations • Recommendations by stakeholder group • Present report to EUC & RMC 6 Thank You Questions? Kurt.Stogdill@austinenergy.com 512-413-1255 ©2020 Austin Energy. All rights reserved. Austin Energy name and logo as well as Austin Energy Green Building name and 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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Item 16: Quarterly Financial Report original pdf

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Item 16 Austin Energy Quarterly Financial Report 1st Quarter FY 2022 (October - December) John Davis AE Director of Finance - Budget February 14, 2022 © 2018 Austin Energy Disclaimer Certain information set forth in this presentation contains forecasted financial information. Forecasts necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance. Although the forecasted financial information contained in this presentation is based upon what Austin Energy management believes are reasonable assumptions, there can be no assurance that forecasted financial information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forecasts. In addition, this presentation contains unaudited information and should be read in conjunction with the audited Annual Comprehensive Financial Reports for the City of Austin, which was published on March 18, 2021: https://assets.austintexas.gov/financeonline/downloads/comprehensive_annual_financial_report/comprehensi ve_annual_financial_report_2020.pdf 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 Generally compliant with all financial policies. Contingency and Capital Reserve balances below minimums but total cash above minimum of $480m. $ 359 Million Revenues Operating revenues at December are 6% over budget due to increased Power Supply Revenue. Working Capital decreased $118M primarily due to funding CIP and decreased margins. Austin Energy is meeting our target AA S&P bond rating. $344 Million Expenses Operating expenses are 18% over budget due to higher Power Supply costs and timing of customer care expenses. Declining Average Consumption – Lagging energy sales hamper cost recovery. This information is unaudited and should be read in conjunction with the audited Comprehensive Financial Reports for the City of Austin, when published on https://assets.austintexas.gov/financeonline/downloads/comprehensive_annual_financial_report/comprehensive_annual_financial_report_2020.pdf 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 Partial Compliance Partial Compliance Full Compliance Actual 1.7x DSC Requirement is 2.0x DSC Contingency and Capital Reserve balances are below minimums but total cash above minimum of $480m 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 …

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Item 17: Quarterly Operations Report original pdf

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Item 17 Austin Energy Operational Update Q1 FY22 Electric Utility Commission Tom Pierpoint Vice President, Electric System Engineering & Technical Services, Austin Energy February 2022 © 2018 Austin Energy 1 Austin Energy Operational Update Discussion Topics Performance Carbon Footprint On-Site Energy Resources Future State 2 Austin Energy Operational Update Performance 3 Commercial Availability & Start Success Commercial Availability Generation Resource Target Seasonal Commercial % Availability Commercial Availability Actuals (%) Q4 FY21 AVG Q1 FY22 AVG 96 95 99 100 76 44 51 84 * 95 95 97 100 Decker Steam Units Sand Hill Combined Cycle Fayette Units South Texas Project Start Success Commercial Availability values reflect maintenance or refueling outages typical for this period Start Success Target(%) Start Success Actuals (%) Q1 FY22 AVG Q4 FY21 AVG Simple Cycle Start Success 99 100 100 4 Net Generation and Load Analysis FY 2022 Q1 *Costs include fuel for generation, fuel transportation, renewable Power purchases agreements This information is unaudited and should be read in conjunction with the audited Comprehensive Financial Reports for the City of Austin, when published on 5 Electric System Resilience and Reliability “Austin Energy stands among a handful of Electric Utilities in providing its customers with the best overall reliability in North America,” Rob Earle, Director, First Quartile Consulting • Resilience and Reliability are a Strategic Goal • Two Industry Awards for Overall System Reliability o First Quartile Consulting Benchmarking Services o PA Consulting ReliabilityOne • Reliability Strengths o Overall Distribution Reliability o Transmission System Performance • Current Improvement Initiatives o Addressing pockets of poor performance on the distribution system o Identified and have largely resolved the root causes of 4th quartile substation reliability Award from ReliabilityOne – November 17, 2021 6 System Reliability - SAIFI SAIFI w/o MED - CY19 - CY20 - CY21 0.94 0.89 0.86 0.8 0.74 0.75 0.66 0.68 0.65 0.73 0.74 0.72 0.76 0.72 I R E P S N O T P U R R E T N I F O R E B M U N . G V A 1.2 R E M O T S U C 0.4 0 CY19 Q1 CY19 Q2 CY19 Q3 CY19 Q4 CY20 Q1 CY20 Q2 CY20 Q3 CY20 Q4 CY21 Q1 CY21 Q2 CY21 Q3 CY21 Q4 TOP QUARTILE BENCHMARK Austin Energy performance compared to Top Quartile (calendar years 2019-2021) ReliabilityOne ® North America Panel: Electric Utilities with more than 300,000 customers (calendar …

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Item 18: February 2021 Winter Storms After Action Report Follow-up re Load Shed and Circuit Sectionalizing original pdf

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Item 18 February 2021 Winter Storms After-Action Report Follow-up Actions Pertaining to ERCOT-Mandated Load Shed Tom Pierpoint Vice President, Electric System Engineering & Technical Services February 14, 2022 ©2022 Austin Energy Topics • Austin Energy February 2021 Winter Storms After-Action Report • Impact of ERCOT-Mandated Load Shed • Circuit Reconfiguration and Sectionalizing • Key Actions to Add Circuits and Further Capacity to Manual Load Shed • After-Action Report Status of Follow-up Actions • Questions & Comments 2 ERCOT must mandate Load Shed at any time, frequency, duration or level to stabilize the Texas Electric Grid Austin Energy has a broad strategy to meet ERCOT- Mandated Load Shed 3 Impact of ERCOT-Mandated Load Shed 4 Electric Circuit Portfolio for ERCOT-Mandated Load Shed Category of Circuit Manual Load Shed Characteristics of Circuit Can be used for cycling Under Frequency Load Shed (UFLS) Required by ERCOT to be reserved and pre-programmed Can be used for cycling in specific situations Dedicated / Industrial Circuits and customers that cannot be cycled Customer-side curtailment instead of power interruption Downtown Underground Network Circuits likely damaged or destroyed by cycling Customer-side curtailment instead of power interruption Critical Load – Life Sustaining No life-sustaining facilities lost power 5 Circuit Reconfiguration & Sectionalizing Each situation must be carefully evaluated by skilled engineers and field technicians for feasibility. Streets & Buildings Other Utility Infrastructure Major Electric Lines Detailed Electric Topology Some factors to consider • Sectionalizing originally implemented for reliability, not load shed • Location of critical load customers • Pole loading, circuit density and 3rd party attachments • Affordability (dependent on the situation) Load Shed Sectionalizing Pilot • Analyzing 7 circuits for manual intervention • More circuits would require automation Primary challenges of large-scale Sectionalizing • Critical load customers must be at head end of circuit • Changes to Control Center computer • Build-out of two-way wireless communications system • New equipment and modify existing equipment on poles • At least a 3–5-year timeline 6 Key Actions to Add Circuits and Further Capacity to Manual Load Shed Category Manual Load Shed Under Frequency Load Shed Dedicated / Industrial Downtown Underground Network Critical Load – Life Sustaining Additional Flexibility to Reassign Circuits Industrial Curtailment Program Curtailment for Commercial Reconfigured 3 Critical Load Circuits 7 After-Action Report Status of Follow-up Actions 8 Questions and Comments Thank You! 9

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Items 2-14: Draft RCAs original pdf

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Item 2 Posting Language ..Title Authorize an amendment to a contract with Nalco Company LLC d/b/a Nalco Company for continued specialty chemical water treatment services, to increase the amount by $3,500,250 and to extend the term by one year, for a revised total contract amount not to exceed $14,687,500. (Note: This contract was reviewed for subcontracting opportunities in accordance with City Code Chapter 2- 9C Minority Owned and Women Owned Business Enterprise Procurement Program. For the goods and services required for this contract, there were insufficient subcontracting opportunities; therefore, no subcontracting goals were established). ..Body Lead Department Financial Services Department. Client Department(s) Austin Energy, Austin Convention Center Department, Austin Public Library, Aviation, Building Services Department, Parks and Recreation Department. Fiscal Note Funding in the amount of $2,333,500 is available in the Fiscal Year 2021-2022 Operating Budgets of various City departments. Funding for the remaining contract term is contingent upon available funding in future budgets. Purchasing Language: Contract Amendment. Prior Council Action: February 2, 2017 – Council approved the original contract, item 28, on a 10-0 vote with Council Member Casar off the dais. December 3, 2020 – Council approved an amendment, item 29, on an 11-0 vote. For More Information: Inquiries should be directed to Julia Finn, at 512-322-6060 or Julia.Finn@austintexas.gov. Council Committee, Boards and Commission Action: February 14, 2022 - To be reviewed by the Electric Utility Commission. Additional Backup Information: The proposed amendment will provide City departments additional funding for continued specialty chemical water treatment services. These specialty chemicals protect assets such as chilled water loops, power boilers, and condenser water loops. These chemicals are specifically blended and designed to prevent hazardous public health issues and reduce or eliminate corrosion and erosion within the different piping loops located at various City facilities including the power plants, chilled water plants, City office buildings, as well as the airport. The original funding request was based on a five-year forecast for several City departments. This request will provide continued services until a new contract is established. ..Strategic Outcome(s) Strategic Outcome(s): Safety, Government that Works for All, Health and Environment. . Item 3 Posting Language ..Title Authorize an amendment to a contract with SAP America Inc. to provide a continued subscription for talent, performance, and learning management software, to increase the amount by $198,000 and to extend the term by one year, for a revised total contract amount not to exceed $3,146,933. …

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Revised Agenda original pdf

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Electric Utility Commission February 14, 2022  6:00 PM Austin Energy Headquarters; 1st Floor; Shudde Fath Conference Room 4815 Mueller Blvd, Austin TX 78723 Some members of the Electric Utility Commission maybe participating by videoconference. The meeting may be viewed online at: http://www.austintexas.gov/page/watch-atxn-live 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 Robin Otto at Robin.Otto@austinenergy.com or 512-322-6254. REVISED AGENDA Members: Marty Hopkins, Chair (Casar) Dave Tuttle, Vice Chair (Alter) Marshall Bowen (Kelly) Randy Chapman (Pool) Cary Ferchill (Adler) Erik Funkhouser (Fuentes) Karen Hadden (Kitchen) Makenna Jonker (Harper- Madison) Cyrus Reed (Tovo) Kay Trostle (Ellis) Vacancy (Renteria) For more information, please visit: www.austintexas.gov/euc Reading and Action on Consent Agenda: Items 2-14 may be acted upon by one motion. No separate discussion or action on any of the items is necessary unless desired by a Commissioner. CALL MEETING TO ORDER CITIZEN COMMUNICATION: GENERAL Speaker must be present and will be allowed up to three minutes to provide their comments. 1. APPROVAL OF MINUTES – Approve minutes of the November 19, 2021 meeting. NEW BUSINESS – CONSENT ( ) = Target Council Meeting Date; [ ] = RCA Type 2. (3/3) [Purchasing – Multi-Departmental; AE’s portion approximately $12.7M] Authorize an amendment to a contract with Nalco Company LLC d/b/a Nalco Company for continued specialty chemical water treatment services, to increase the amount by $3,500,250 and to extend the term by one year, for a revised total contract amount not to exceed $14,687,500. 3. (3/3) [Purchasing] Authorize an amendment to a contract with SAP America Inc. to provide a continued subscription for talent, performance, and learning management software, to increase the amount by $198,000 and to extend the term by one year, for a revised total contract amount not to exceed $3,146,933. 4. (3/3) [Purchasing] Authorize award of a contract with Johnson Controls Inc d/b/a Johnson Controls to provide fire protection and maintenance services, for a term of five years in an amount not to exceed $2,000,000. 5. (3/3) [Purchasing] Authorize negotiation and execution of a multi-term contract with Power Grid Engineering, LLC to provide relay services, for up to five years in an amount not to exceed …

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Approved Minutes original pdf

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Electric Utility Commission February 14, 2022 Minutes The Electric Utility Commission (EUC) convened a regularly scheduled meeting at Austin Energy Headquarters, with some members attending via videoconference/Webex. Meeting called to order by Chair Hopkins at 6:10 p.m. Also present were Commissioners Chapman, Reed, Jonker, Trostle (v), Hadden (v), Bowen (v), Ferchill (v) and Funkhauser (v). Vice-Chair Tuttle was absent and there is one vacancy. CITIZEN COMMUNICATION: None 1. APPROVAL OF MINUTES – Approve minutes of the November 8, 2021. No action taken. NEW BUSINESS – CONSENT ( ) = Target Council Meeting Date; [ ] = RCA Type Motion (Funkhouser) to recommend Items 2-5, 13; seconded (Chapman); passed on a vote of 8-0, with Vice Chair Tuttle and Commissioner Ferchill absent and one vacancy. Motion (Reed) to recommend Items 6-12; seconded (Jonker); passed on a vote of 8-0, with Vice Chair Tuttle and Commissioner Ferchill absent and one vacancy. Motion (Trostle) to recommend Item 14; seconded (Funkhouser); passed on a vote of 9-0, with Commissioner Ferchill absent and one vacancy. 1. (3/3) [Purchasing – Multi-Departmental; AE’s portion approximately $12.7M] Authorize an amendment to a contract with Nalco Company LLC d/b/a Nalco Company for continued specialty chemical water treatment services, to increase the amount by $3,500,250 and to extend the term by one year, for a revised total contract amount not to exceed $14,687,500. 2. (3/3) [Purchasing] Authorize an amendment to a contract with SAP America Inc. to provide a continued subscription for talent, performance, and learning management software, to increase the amount by $198,000 and to extend the term by one year, for a revised total contract amount not to exceed $3,146,933. 3. (3/3) [Purchasing] Authorize award of a contract with Johnson Controls Inc d/b/a Johnson Controls to provide fire protection and maintenance services, for a term of five years in an amount not to exceed $2,000,000. 4. (3/3) [Purchasing] Authorize negotiation and execution of a multi-term contract with Power Grid Engineering, LLC to provide relay services, for up to five years in an amount not to exceed $6,000,000. 5. (3/3) [Austin Energy](T1) Approve a resolution authorizing the filing of eminent domain proceedings for the acquisition of real property rights consisting of a Temporary Construction Easement containing approximately 4,438 square feet of land, being a part of Lot A-4-1 of the Resubdivision of Lot 4-A of the Resubdivision of Lot A-1 of the Resubdivision of Lot “A”, Tempo North, a …

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