Electric Utility Commission Regular Meeting of the Electric Utility Commission

Agenda — original pdf

MEETING OF THE ELECTRIC UTILITY COMMISSION AUGUST 8, 2022  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. 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 via phone at 512-322-6254. AGENDA Members: Marty Hopkins, Chair Dave Tuttle, Vice Chair Marshall Bowen Randy Chapman Cary Ferchill Erik Funkhouser Karen Hadden Makenna Jonker Cyrus Reed Kay Trostle 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 July 18, 2022. DISCUSSION AND POSSIBLE ACTION ON RECOMMENDATIONS 2. Recommendation to conduct a public hearing and consider proposed rate and fee changes for Austin Energy as part of the Fiscal Year 2022-2023 proposed budget. 3. Recommend authorizing an amendment to a contract with Altec Industrial Inc., to provide customized utility vehicles, to increase the amount by $3,000,000, for a revised total contract amount not to exceed $33,500,000. 4. Recommend authorizing negotiation and execution of a multi-term contract with Enertech Resources LLC to provide moonlight towers maintenance, inspection, restoration, and repair for up to five years for a total contract amount not to exceed $5,500,000. 5. Recommend authorizing negotiation and execution of a contract with Primoris T&D Services, LLC for substation maintenance for a term of five years in an amount not to exceed $10,000,000. 6. Recommend authorizing award and execution of a construction contract with Muniz Concrete & Contracting, Inc., for the Justin Lane Demolition and Site Preparation project in the amount of $ 1,658,248.00 plus a $ 165,824.80 contingency, for a total contract amount not to exceed $ 1,824,072.80. 7. Recommend approving a resolution authorizing the filing of eminent domain proceedings and payment to acquire the property interest needed for the IH-35 Capital Express Structure Relocation, North project for the public use …

Item 10 3rd Quarter Operations Report — original pdf

Item 10 Austin Energy FY2022 Q3 Operations Update August 2022 Stuart Reilly Acting Deputy General Manager & Chief Operating Officer © 2022 Austin Energy 1 Agenda Quarterly Operations Update Executive Summary Reliability Performance Environmental Performance Grid Resilience Strategic Goal 2 Executive Summary Generator availability on-target For the quarter, resources mostly met availability targets, except where FPP outages were experienced. Reliability performance stable Performance over the longer term is trending statistically consistent with top quartile industry benchmarks. Renewable production on-target For the quarter, aggregate renewable production as a percentage of load at 61%. Carbon free production on-target For the month of April, 97% carbon-free generation as a percentage of load. 3 Austin Energy Operations Update Reliability Performance 4 Generator Commercial Availability & Start Success Commercial Availability Generation Resource Target Seasonal Commercial % Availability Commercial Availability Actuals (%) Q2 FY22 AVG Q3 FY22 AVG 98 55 97 100 - 100 79 100 * 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 (%) Q3 FY22 AVG Q2 FY22 AVG Simple Cycle Start Success 99 100 100 5 Net Generation and Load Analysis FY 2022 Q3 *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 6 System Reliability SAIDI w/o MED - CY19 - CY20 - CY21 - CY22 71.51 68.44 60.41 52.77 55.96 54.21 57.89 60.88 61.39 63.40 62.71 62.95 57.00 CAIDI = Customer Average Interruption Duration Index Average time to restore service SAIDI = System Average Interruption Duration Index Total duration of interruptions for the average customer, during a period of time SAIFI = System Average Interruption Frequency Index How often the average customer experiences a sustain interruption, over a period of time MED = Major Event Days CY19 Q3 CY19 Q4 CY20 Q1 CY20 Q2 CY20 Q3 CY20 Q4 CY21 Q1 CY21 Q2 CY21 Q3 CY21 Q4 CY22 Q1 CY22 Q2 TOP QUARTILE BENCHMARK CAIDI w/o MED - CY19 - CY20 - CY21 - CY22 SAIFI w/o MED - CY19 - CY20 - CY21 - CY22 79.58 80.55 79.95 82.29 83.4 79.3 82.27 85.26 83.42 76.07 80 78.39 78.69 79.17 0.94 0.86 0.75 0.66 0.68 0.65 0.73 …

Item 11 3rd Quarter Financial Report — original pdf

Item 11 Austin Energy Quarterly Financial Report 3rd Quarter FY 2022 (April - June) Adam McInroy AE Director of Finance August 8, 2022 © 2022 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 14, 2022: http://finance.austintexas.gov/web/controller/annual_comprehensive_financial_report/annual_comprehensive _financial_report_2021.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 Debt policies. AE is in partial compliance with its financial Service Coverage is below 2.0x. Contingency and capital reserve balances are also below minimums, but total cash is above the minimum of $480m1. $1.1 Billion Operating Revenue Operating revenue for June FYTD is 11% over budget, primarily due to increases in usage, base revenue, and power supply revenue due to hot weather. Working capital decreased by $159m year over year, primarily due to scheduled margins, decreased funding of CIP, and the reduction in Supply the adjustment rate due to Winter Storm Uri. recovered Power $(1.2) Billion Expenses w/transfers Operating expenses for June FYTD including transfers are 10% over budget, primarily due increases in power supply and power production expenses due to hot weather. Austin Energy is meeting its target S&P bond rating of AA, but financial metrics show this to be at risk. Fitch has downgraded its rating for Austin Energy’s credit, from AA to AA-. 1. The policy framework considers a minimum of 150 days cash, with daily rate of cash expense measured at the time of budgeting. This information is unaudited and should be read in conjunction with the audited Comprehensive Financial Reports for the City of Austin, when published on http://finance.austintexas.gov/web/controller/annual_comprehensive_financial_report/annual_comprehensive_financial_report_2021.pdf 5 Austin Energy Quarterly Financial Report Financial Policy Compliance 6 Financial …

Item 12 FY23 AE Budget Presentation — original pdf

Item 12 Fiscal Year 2023 Proposed Budget Presentation Electric Utility Commission August 8, 2022 © 2022 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 14, 2022: http://finance.austintexas.gov/web/controller/annual_comprehensive_financial_report/annual_comprehensi ve_financial_report_2021.pdf 2 Agenda • Budget Adoption Schedule • Proposed Budget Summary • Financial Health • Major Business Unit Discussions • Proposed Tariff and Fee Changes 3 Fiscal Year 2023 Proposed Budget Presentation Budget Adoption Schedule 4 FY 2023 Budget Adoption Schedule • July 15 – City Manager Proposed Budget Presentation • Aug 2 – Set max tax rate and budget & tax rate hearings – City Council • Aug 2 – Set public hearing on Austin Energy rates & fee schedule – City Council • Aug 8 – Electric Utility Commission Proposed Budget Presentation • August 9, 11 – Budget work sessions – City Council • August 17-19 – Budget readings and adoption – City Council • Budget public input meeting (August 17) • Public hearing on Austin Energy rates and fee schedule (August 17) • September 29 – Propose updated FY 2023 Power Supply Adjustment, Community Benefit Charge, and Regulatory charge 5 Fiscal Year 2023 Proposed Budget Presentation Proposed Budget Summary 6 Austin Energy’s Share of the FY 2023 City Budget Austin Energy’s total Expenditure Budget of $1.6B in FY 2023 is 30% of the City of Austin’s total expenditures budget of $5.0B 7 FY 2023 Austin Energy Fund Summary ($millions) Beginning Balance Revenue/Transfers In Expenditures Operating Expenses Power Supply Expenses Debt Service CIP Transfer General Fund Transfer Other Transfers & Requirements Total Expenditures Excess (Deficiency) Ending Balance (Adjusted) FTEs FY 2020 FY 2021 FY 2022 FY 2023 Change from FY 2022 Amended to FY 2023 Proposed Actual Actual Estimated Amended Proposed $413.4 $1,389.9 $387.8 $1,288.8 $234.3 $1,501.6 …

Item 15 Council Action Report — original pdf

Item 15 EUC Report re Council Action August 8, 2022 Items below recommended by EUC July 18; Council approved on date indicated in parenthesis. 2. (7/28) Authorize negotiation and execution of a contract with Butler & Land Technologies, LLC to provide online substation battery monitoring systems, for a term of 5 years in an amount not to exceed $1,000,000. 3. (7/28) Authorize an amendment to an existing contract with Mitsubishi Electric Power Products Inc D/B/A Mitsubishi Electric Power Products for continued gas-insulated switchgear and related services to increase the amount by $850,000, for a revised total contract amount not to exceed $7,650,000. 4. (7/28) Authorize negotiation and execution of a contract with Techline Inc to provide remote streetlight monitoring, for a term of 5 years in an amount not to exceed $3,800,000. 5. (7/28) Authorize negotiation and execution of a multi-term cooperative contract with SHI- GOVERNMENT SOLUTIONS INC, to provide Tableau business intelligence and analytics software, for up to three years for a total contract amount not to exceed $1,400,000. 6. (7/28) Authorize negotiation and execution of a contract with Able Moving LLC D/B/A Able Machinery Movers LLC to provide relocation services of industrial electrical inventory, in an amount not to exceed $550,000. 7. (7/28) Authorize negotiation and execution of a contract with Open Systems International, Inc. for the upgrade of Austin Energy’s Generation Management System, for a term of one year in an amount not to exceed $334,000. 8. (7/28) Authorize negotiation and execution of a multi-term cooperative contract with Carahsoft Technology Corp to provide Salesforce subscription, software, maintenance, and support services for up to three years for a total contract amount not to exceed $1,224,000. 9. (7/28) Authorize award of a contract with GC3 Specialty Chemicals Inc to provide 19% aqueous ammonia, for Sand Hill Energy Center, for a term of five years in an amount not to exceed $1,350,000. 10. (7/28) Authorize negotiation and execution of a multi-term cooperative contract with Executive Information Systems LLC to provide business analytics software platform support and maintenance to for up to three years for a total contract amount not to exceed $280,000. 11. (7/28) Authorize negotiation and execution of a multi-term cooperative contract with Insight Public Sector, to provide Information Technology infrastructure management products and services, for up to three years for a total contract amount not to exceed $660,000. 12. (7/28) Authorize award of a contract with KBS Electrical …

Items 2-9 Draft RCAs — original pdf

Posting Language ..Title Conduct a public hearing and consider proposed rate and fee changes for Austin Energy as part of the Fiscal Year 2022-2023 proposed budget. Item 2 ..De Lead Department Austin Energy Fiscal Note This item has no fiscal impact. Prior Council Action: August 2, 2022- Austin Energy public hearing was set. For More Information: Amy Everhart, Director, Local Governmental Relations, 512-322-6087; John Davis, Director, AE Finance, 512-505-3724 Council Committee, Boards and Commission Action: August 8, 2022- To be reviewed by the Electric Utility Commission. Additional Backup Information: This action requests City Council to conduct a public hearing to receive public comments and consider the proposed changes to rates and fees included in Austin Energy’s Fiscal Year 2022-2023 proposed budget. Council is scheduled to adopt the City Budget on August 17, 18, and 19, 2022. The City Code in Section 15-9-3 specifically requires a public hearing prior to the City Council approving any changes in electric, water, wastewater, and garbage collection rates. ..Strategic Outcome(s) Strategic Outcome(s): Government That Works for All. Item 3 Posting Language ..Title Authorize an amendment to a contract with Altec Industrial Inc. to provide customized utility vehicles, to increase the amount by $3,000,000 for a revised total contract amount not to exceed $33,500,000. (Note: This contract was awarded in accordance with City Code Chapter 2-9C Minority Owned and Women Owned Business Enterprise Procurement Program. For the services required for this contract, there were no subcontracting opportunities; therefore, no subcontracting goals were established). ..Body Lead Department Financial Services Department. Client Department(s) Austin Energy. Purchasing Language: Contract Amendment. Fiscal Note Funding is available in the Fiscal Year 2021-2022 Operating Budget of Austin Energy. Funding for the remaining contract term is contingent upon available funding in future budgets. Prior Council Action: August 3, 2017 – Council approved the original contract, item 47, on an 11-0 vote. September 17, 2020 - Council approved an amendment, item 43, on an 11-0 vote. For More Information: Inquiries should be directed to Melita Harden, at 512-322-6149 or Melita.Harden@austintexas.gov. Council Committee, Boards and Commission Action: August 8, 2022 – To be reviewed by the Electric Utility Commission. Additional Backup Information: The proposed amendment will provide additional funding required for the continued lease payments on Phases I and II of the customized utility vehicles currently in use by Austin Energy. The extension of these phases is required due to production shortages and delays in …

Item 12 Revised FY23 AE Budget Presentation — original pdf

Item 12 Fiscal Year 2023 Proposed Budget Presentation Electric Utility Commission August 8, 2022 © 2022 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 14, 2022: http://finance.austintexas.gov/web/controller/annual_comprehensive_financial_report/annual_comprehensi ve_financial_report_2021.pdf 2 Agenda • Budget Adoption Schedule • Proposed Budget Summary • Financial Health • Major Business Unit Discussions • Proposed Tariff and Fee Changes 3 Fiscal Year 2023 Proposed Budget Presentation Budget Adoption Schedule 4 FY 2023 Budget Adoption Schedule • July 15 – City Manager Proposed Budget Presentation • Aug 2 – Set max tax rate and budget & tax rate hearings – City Council • Aug 2 – Set public hearing on Austin Energy rates & fee schedule – City Council • Aug 8 – Electric Utility Commission Proposed Budget Presentation • August 9, 11 – Budget work sessions – City Council • August 17-19 – Budget readings and adoption – City Council • Budget public input meeting (August 17) • Public hearing on Austin Energy rates and fee schedule (August 17) • September 29 – Propose updated FY 2023 Power Supply Adjustment, Community Benefit Charge, and Regulatory charge 5 Fiscal Year 2023 Proposed Budget Presentation Proposed Budget Summary 6 Austin Energy’s Share of the FY 2023 City Budget Austin Energy’s total Expenditure Budget of $1.6B in FY 2023 is 30% of the City of Austin’s total expenditures budget of $5.0B 7 FY 2023 Austin Energy Fund Summary ($millions) Beginning Balance Revenue/Transfers In Expenditures Operating Expenses Power Supply Expenses Debt Service CIP Transfer General Fund Transfer Other Transfers & Requirements Total Expenditures Excess (Deficiency) Ending Balance (Adjusted) FTEs FY 2020 FY 2021 FY 2022 FY 2023 Change from FY 2022 Amended to FY 2023 Proposed Actual Actual Estimated Amended Proposed $413.4 $1,389.9 $387.8 $1,288.8 $234.3 $1,501.6 …

20220808-002: Regarding Proposed Fiscal Year 2022-23 Austin Energy Budget — original pdf

ELECTRIC UTILITY COMMISSION RECOMMENDATION 20220808-002 August 8, 2022 Proposed Fiscal Year 2022-23 Austin Energy Budget Date: Subject: Motioned By: Commissioner Chapman Recommendation The Electric Utility Commission endorses the proposed Fiscal Year 2022-23 Austin Energy budget with the following modifications: Description of Recommendation to Council Seconded By: Commissioner Jonker • The EUC wants to make it clear that in endorsing the Austin Energy FY 2023 budget, we are not endorsing changes related to the proposed base rate increase introduced by Austin Energy on April 18th. • Additional costs related to the Fayette Coal Plant as laid out in the budget should be carefully scrutinized by city council given the stated goal of getting out of coal by the end of the year. • City Council should authorize funding in FY 2023 for an update to the 2015 Decommissioning study to determine if the budgetary set-aside of $8 million dollars per year to the non-nuclear decommissioning fund is the appropriate amount. • With nearly half of Austin’s population living in rental housing, we recommend the Council review current efforts by Austin Energy to make improvements to energy efficiency programs and ensure equity in access to efficiency programs. • Funding for direct install weatherization programs and multi-family programs have remained stagnant in FY 2023 as proposed. The EUC recommends that Council work with Austin Energy to increase the budgets of multi-family and home weatherization programs proportionally to the overall increase in the Customer Energy Solutions budget. In order to assess community concerns with potential groundwater contamination in the area of the coal plant, City Council should authorize up to $100,000 in additional groundwater testing for a third-party to conduct focused testing of groundwater and water wells in the immediate area. Chair Hopkins, Vice Chair Tuttle, Commissioner Chapman, Commissioner Ferchill, Commissioner Hadden, Commissioner Jonker, Commissioner Reed, Commissioner Trostle • Vote For: Against: None Abstain: None 1 of 2 Absent: Commissioner Bowen, Commissioner Funkhauser Attest: Robin Otto, Staff Liaison 2 of 2