Electric Utility Commission Special Called Meeting of the Electric Utility Commission

Agenda — original pdf

SPECIAL CALLED MEETING OF THE ELECTRIC UTILITY COMMISSION JANUARY 22, 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 Robin Otto, at Robin.Otto@austinenergy.com or via phone at 512-322-6254. AGENDA Members: Dave Tuttle, Chair Kaiba White, Vice Chair Raul Alvarez Cesar Benavides Jonathon Blackburn Randy Chapman Mick Long Cyrus Reed Kay Trostle Vacant 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 November 13, DISCUSSION AND ACTION ITEMS 2. Recommend authorizing negotiation and execution of two contracts for tree growth regulator services with Edko LLC and T&S Growth Solutions, LLC, each for up to three years for total contract amounts not to exceed $5,000,000, divided between the contractors. 3. Recommend authorizing execution of two contracts for batteries, battery banks and battery testing services with Direct Current Preventive Maintenance LLC d/b/a DCPM and Exponential Power Inc. each for up to five years for total contract amounts not to exceed $3,500,000 divided between the contractors. 4. Approve the creation of a Budget & Audit working group to provide recommendations on the FY 24/25 Austin Energy budget to the Commission. (Sponsors: Chapman, Trostle) 2023. DISCUSSION ITEMS 5. Presentation by Abbe Ramanan, Clean Energy Group, regarding green hydrogen. 6. Discussion on hydrogen technology by Michael Hoffman, Austin Energy Environmental Services Manager; Michael Webber, University of Texas; Patrick Drupp, Sierra Club; Joseph Benoit, PSM; and moderated by Dana Harmon. 7. Discussion of the Resource Generation Plan Working Group’s draft recommendations. 8. Discussion of report regarding City Council action on items previously reviewed by the EUC. FUTURE AGENDA ITEMS ADJOURNMENT The City of Austin is committed to compliance with the American with Disabilities Act. Reasonable modifications and equal access to communications will be provided upon request. Meeting locations are planned …

Item 2-3 Draft RCAs — original pdf

Item 2 Posting Language ..Title Authorize negotiation and execution of two contracts for tree growth regulator services with Edko LLC and T&S Growth Solutions, LLC, each for up to three years for total contract amounts not to exceed $5,000,000, divided between the contractors. [Note: This solicitation was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9C (Minority Owned and Women Owned Business Enterprise Procurement Program). For the services required for this solicitation, there were no subcontracting opportunities, therefore, no subcontracting goals were established]. ..Body Lead Department Financial Services Department. Client Department(s) Austin Energy. Fiscal Note Funding in the amount of $1,388,889 is available in the Fiscal Year 2023-2024 Operating Budget of Austin Energy. Funding for the remaining contract term is contingent upon available funding in future budgets. Purchasing Language: The Financial Services Department issued a Request for Proposal (RFP) 1100 DCM3019 for these services. The solicitation was issued on May 22, 2023, and closed on June 13, 2023. Of the four offers received, the recommended contractors submitted the best evaluated responsive offers. A complete solicitation package, including a log of offers received, is available for viewing on the City’s Financial Services website, Austin Finance Online. Link: Solicitation Documents. 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. Respondents to the solicitation and their Agents should direct all questions to the Authorized Contact Person identified in the solicitation. Council Committee, Boards and Commission Action: November 13, 2023– To be reviewed by the Electric Utility Commission. Additional Backup Information: The contracts will provide Austin Energy with tree growth regulator services around utility lines and within electrical system easements, rights-of-way, substation facilities, and generating plants. Managing vegetation around energized utility lines is critical to ensuring the public’s safety. Tree growth regulators are increasingly being integrated into programs across the United States to change the way trees are cared for under power lines, around the power lines, and along right-of-ways. Tree growth regulators can also extend prune cycles on given circuits which can promote safety, which results in fewer opportunities for an incident to occur on circuits as well keeping trees out of power lines. The contractors will apply herbicides to manage and suppress vegetation growth in accordance with public safety, environmental, aesthetic and animal care requirements. The contractors will also notify and discuss with property owners any …

Item 5 Presentation by Abbe Ramanan, Clean Energy Group, on green hydrogen — original pdf

Green Hydrogen: Costs, Availability, and Risks 1 January 22, 2024 www.cleanegroup.org Item 5 Abbe Ramanan Affordable, reliable, clean energy for all. 2 www.cleanegroup.org Hydrogen Information & Public Education Raising awareness of the health and environmental impacts of hydrogen production and use. 3 www.cleanegroup.org/initiatives/hydrogen © Clean Energy Group Types of Hydrogen Generation – the “Rainbow” e v i s n e t n i n o b r a C e e r f n o b r a C Grey Hydrogen Hydrogen produced from natural gas via a process called steam methane reformation (SMR), without carbon capture. 95% of hydrogen produced today is grey hydrogen. Blue Hydrogen Hydrogen produced from natural gas via SMR, but with carbon capture deployed during the process to capture production-related carbon emissions. Turquoise Hydrogen Hydrogen produced by splitting natural gas into methane, hydrogen, and solid carbon black. Gold or Orange Hydrogen Produced by pumping a mix of CO2 and microbes into depleted oil wells, paired with carbon capture. Green Hydrogen Hydrogen produced via a process called electrolysis, in which an electric current is run through water to separate the hydrogen and oxygen molecules. If that electricity comes from renewable energy, the hydrogen is considered green. There are no carbon emissions associated with this process . 4 Pink Hydrogen Hydrogen produced via electrolysis, but the electrolyzer is powered by nuclear energy. White Hydrogen Naturally occurring hydrogen found in underground deposits. Why Defining Green Hydrogen is Important • Green hydrogen, blue hydrogen, and more recently, gold/orange hydrogen, are often conflated under the umbrella term “clean hydrogen.” • However, only green hydrogen produced via renewable-powered electrolysis is truly carbon-free. • This definition is even more important now because of recently released draft guidance by the Treasury for the 45V Clean Hydrogen Production Tax Credit. • 45V is a tiered incentive based on CO2-equivalent emissions. Carbon-free hydrogen is eligible for a $3.00/kgH2 credit. • To be eligible for the highest tier of the 45V credit, hydrogen projects must demonstrate: – Temporal matching: every hour of electrolytic production is matched by an hour of 5 renewable energy production using Energy Attribute Certificates (EACs). – Additionality: hydrogen production must be powered by new renewable energy resources, built within three years of the hydrogen facility, not existing ones. – Localized production: renewable energy resources must be located within the same region as the hydrogen production facility. Availability of Green Hydrogen • Without …

Item 7 Backup_EUC Working Group Portfolios — original pdf

Item 7 Resource Generation Plan Update EUC Working Group Portfolios January 10, 2024 © Austin Energy EUC Working Group Portfolios Production Cost Modeling Key Results S. Babu Chakka Manager, Energy Market Analysis & Resource Planning 2 Portfolio A_2035 (Meet Load with Clean Energy, DR, EE & Batteries) EE DR Local Solar Batteries 5% Summer Peak Reduction by 2027 150 MW by 2027 Renewable Goals 65% by 2027 500 MW with 200 MW behind the meter by 2030 700 MW with 250 MW behind the meter by 2035 4 Hr: 100 MW Local +25 MW Nonlocal Co- located by 2027 200 MW = 100 MW Local + 100 MW Nonlocal Co-located by 2035 8 Hr: 100 MW Local +50 MW Nonlocal Co- located by 2027 200 MW = 100 MW Local + 100 MW Nonlocal Co-located by 2035 100 Hr: 10 MW Local by 2027 50 MW Local by 2030 100 MW Local by 2035 Convention Gen FPP retire in 2030 Natural Gas Plants retire in 2035 No Change to STP 10% Summer Peak Reduction by 2030 500 MW by 2035 70% by 2030 14% Summer Peak Reduction by 2035 80% by 2035 Note: • • • • • Energy Efficiency assumed existing programs and scaled to get the required the summer peak reduction 8 Hour Batteries were assumed for 4 to 12 Hour range 100 Hour Batteries were assumed instead of 72 Hour duration The technologies and the quantities of the options were modeled as per the request, but the feasibility and potential of these programs require detailed market research and market study. Decker GTs were retired in 2027 in Austin Energy portfolios where in these portfolios they are retired as per NG plants retirement timeline 3 Portfolio A_2030 (Meet Load with Clean Energy, DR, EE & Batteries) EE DR Local Solar Batteries 5% Summer Peak Reduction by 2027 150 MW by 2027 Renewable Goals 65% by 2027 350 MW with 150 MW behind the meter by 2027 500 MW with 200 MW behind the meter by 2030 4 Hr: 100 MW Local +25 MW Nonlocal Co- located by 2027 200 MW = 100 MW Local + 100 MW Nonlocal Co-located by 2030 8 Hr: 100 MW Local +50 MW Nonlocal Co- located by 2027 200 MW = 100 MW Local + 100 MW Nonlocal Co-located by 2030 Convention Gen FPP retire in 2030 Natural Gas Plants retire in 2030 …

Item 8 Council Action Report — original pdf

EUC Report re Council Action January 22, 2024 Item 8 Items below recommended by EUC November 13; Council approved on date indicated in parenthesis.          (11/30) Authorize negotiation and execution of two contracts for pole inspection and remediation services with Osmose Utilities Services Inc. d/b/a Osmose Utilities Services, Inc., and Constellation Energy Corporation d/b/a Constellation Energy Generation, LLC, each for up to six years, for a total amount not to exceed $12,000,000, divided between the contractors. (11/30) Authorize execution of a contract for hauling services for heavy electric utility equipment with H. Brown, Inc., for up to three years for a total contract amount not to exceed $2,000,000. (11/30) Authorize negotiation and execution of a contract for one-time preventive generator maintenance with Grid Solutions (US) LLC, in an amount not to exceed $1,650,000. (11/30) Authorize negotiation and execution of a contract for forklift and boom services with MEI Rigging & Crating LLC, for up to three years for a total contract amount not to exceed $1,300,000. (11/30) Authorize an amendment to a contract for continued service of the UPLAN network management and modeling software, support, and subscription services with LCG Consulting, to increase the amount by $520,000 and to extend the term by two years for a revised total contract amount not to exceed $2,479,667. (11/30) Authorize negotiation and execution of a contract for situational awareness and operational awareness visualization software maintenance, upgrades, and related services with Primate Technologies, Inc., for up to five years for a total contract amount not to exceed $1,330,000. (11/30) Approve issuance of a capacity-based incentive to Public Storage Orangeco Inc. for the installation of solar electric systems on 20 of its facilities in the Austin Energy service territory, in an amount not to exceed $388,776 and approve issuance of a five-year performance-based incentive to Public Storage Orangeco Inc., in a total amount not to exceed $1,024,185.28. (11/30) Approve issuance of a five-year performance-based incentive to Starwood Capital Group LLC for the installation of solar electric systems on its facilities located at 8310 North Capital of Texas Highway Southbound 2, Austin, Texas 78759 and 5707 Southwest Parkway 1, Austin, Texas 78735, in an amount not to exceed $770,089. (11/30) Approve issuance of a capacity-based incentive to Westminster Presbyterian for the installation of solar electric systems on their facility located at 3208 Exposition Boulevard, Austin, Texas 78703, in …

Approved Minutes — original pdf

ELECTRIC UTILITY COMMISSION SPECIAL CALLED MEETING MINUTES Monday, January 22, 2024 The Electric Utility Commission convened in a Special Called meeting on Monday, January 22, 2024, at Austin Energy Headquarters, 4815 Mueller Blvd, Austin, TX 78723. Chair Dave Tuttle called the Electric Utility Commission meeting to order at 6:02 p.m. Commissioners in Attendance: Dave Tuttle, Chair; Cesar Benavides, Mick Long, Cyrus Reed, Kay Trostle Commissioners in Attendance Remotely: Kaiba White, Vice Chair PUBLIC COMMUNICATION: GENERAL There were no speakers under general communications. APPROVAL OF MINUTES 1. Approve the minutes of the Electric Utility Commission Regular Meeting on November 13, 2023. The motion approving the minutes of the Electric Utility Commission meeting of November 13, 2023, were approved on Commissioner Reed’s motion, Commissioner Tuttle’s second on an 6-0 vote with Commissioners Alvarez, Blackburn and Chapman absent and two vacancies. DISCUSSION AND ACTION ON RECOMMENDATIONS The motion to approve recommendation 2 failed on Commissioner Reed’s motion, Commissioner Tuttle’s second on a (5-1) with Commissioners Alvarez, Blackburn and Chapman absent and two vacancies. The members voting aye were Commissioners Tuttle, Benavides, Long, Reed and Trostle. Commissioner White voted nay. The motion to approve recommendation 3 was approved on Commissioner Tuttle’s motion, Commissioner Trostle’s second on a (6-0) Commissioners Alvarez, Blackburn and Chapman absent and two vacancies. The motion to approve recommendation 4 was approved on Commissioner Trostle’s motion, Commissioner Tuttle’s second on a (6-0) Commissioners Alvarez, Blackburn and Chapman absent and two vacancies. 2. Recommend authorizing negotiation and execution of two contracts for tree growth regulator services with Edko LLC and T&S Growth Solutions, LLC, each for up to three years for total contract amounts not to exceed $5,000,000, divided between the contractors. 3. Recommend authorizing execution of two contracts for batteries, battery banks and battery testing services with Direct Current Preventive Maintenance LLC d/b/a DCPM and Exponential Power Inc. each for up to five years for total contract amounts not to exceed $3,500,000 divided between the contractors. 4. Approve the creation of a Budget & Audit working group to provide recommendations on the FY 24/25 Austin Energy budget to the Commission. (Sponsors: Chapman, Trostle) DISCUSSION ITEMS The presentation was made by Stephanie Koudelka, Finance Director. 5. Presentation by Abbe Ramanan, Clean Energy Group, regarding green hydrogen. The presentation was made by Abbe Ramanan, Clean Energy Group. 6. Discussion on hydrogen technology by Michael Hoffman, Austin Energy Environmental Services Manager; Michael Webber, University …