Approved Minutes — original pdf

Approved Minutes

ELECTRIC UTILITY COMMISSION REGULAR MEETING MINUTES Monday, February 12, 2024 The Electric Utility Commission convened in a regular meeting on Monday, February 12, 2024, at Austin Energy Headquarters, 4815 Mueller Blvd, Austin, TX 78723. Chair Dave Tuttle called the Electric Utility Commission meeting to order at 6:05 p.m. Commissioners in Attendance: Dave Tuttle, Chair; Kaiba White, Vice Chair; Cesar Benavides, Randy Chapman, Mick Long, Cyrus Reed Commissioners in Attendance Remotely: Raul Alvarez, Jonathon Blackburn PUBLIC COMMUNICATION: GENERAL There were 4 speakers under general communications. Craig Nazor and Al Braden spoke about items 17 and 21. Dale Bulla spoke about the resource generation plan. Raphael Schwarz spoke about the resource generation plan, the location of the potential gas plant and impacts to the community. APPROVAL OF MINUTES 1. Approve the minutes of the Electric Utility Commission Special Called Meeting on January 22, 2024. The motion approving the minutes of the Special Called Electric Utility Commission meeting of January 22, 2024, were approved as amended on Commissioner Chapman’s motion, Commissioner Reed’s second on an 8-0 vote and three vacancies. The minutes were amended to change the number of EUC members on the Resource Generation Plan Working Group from 4 to 5. DISCUSSION AND ACTION ON RECOMMENDATIONS   The motion to approve recommendations 3, 4, 6-8, 10, 11, 13, 15, and 16 were approved on Commissioner White’s motion, Commissioner Chapman’s second on a (8-0) vote and three vacancies. The motion to approve recommendations 2, 12 and 14 were approved on Commissioner Reed’s motion, Commissioner Tuttle’s second on a (8-0) vote and three vacancies. The motion to approve recommendations 5 and 9 were approved on Commissioner Chapman’s motion, Commissioner Reed’s second on a (7-0-1) vote with Commissioner White abstaining and three vacancies. 2. Recommend authorizing execution of a contract for construction services, for the Kramer Lane Substation project with Capital Excavation Company, in the amount of $12,272,916 plus a $1,227,291 contingency for a total contract amount not to exceed $13,500,207. 3. Recommend authorizing negotiation and execution of a contract for an underground feasibility and overhead distribution resilience study with Burns & McDonnel Engineering Company, Inc., in an amount not to exceed $1,725,000. 4. Recommend authorizing an amendment to the 2023 Chilled Water Construction in the Right-of-Way Indefinite Delivery/Indefinite Quantity construction contract with DeNucci Constructors to increase the amount by $6,250,000, for a revised total contract amount not to exceed $31,250,000. 5. Recommend authorizing negotiation and execution of a multi-term cooperative contract to provide rental of industrial equipment with United Rentals (North America) Inc, for up to five years for a total contract amount not to exceed $4,500,000. 6. Recommend authorizing negotiation and execution of a contract for Splunk cyber security software products and services, with GTS Technology Solutions, Inc., for a term of three years in an amount not to exceed $1,200,000. 7. Recommend authorizing execution of a contract for construction services with Alpha Paving Industries, LLC to provide a New Austin Energy Pole Yard at St. Elmo Service Center in the amount of $312,470, plus a $31,247 contingency for a total contract amount not to exceed $343,717. 8. Recommend authorizing execution of a contract for ION meters with Dealers Electrical Supply d/b/a Dealers Electrical Supply Co, for up to five years for a total contract amount not to exceed $2,500,000. 9. Recommend authorizing execution of a contract for construction services for the Brazos Street Duct Bank Civil Work project with Facilities Rehabilitation Inc., in the amount of $1,967,535 plus a $196,754 contingency for a total contract amount not to exceed $2,164,289.   10. Recommend approving issuance of a capacity-based incentive to KMFA Station, for the installation of solar electric systems on their facilities located at 41 Navasota St, Austin, TX, 78702, in an amount not to exceed $80,676. 11. Recommend approving issuance of a capacity-based incentive to Kensington Apartments, LLC, for the installation of solar electric systems on their facility located at 3300 Manor Rd Austin, TX, 78723, in an amount not to exceed $184,802. 12. Recommend approving issuance of $90,000 to the Texas Solar Energy Society for their Pathways Pilot Program to demonstrate how Low-Income Home Energy Assistance Program funding can now be applied to solar installations in Austin Energy service territory. 13. Recommend approving issuance of a 5-year performance-based incentive to Starwood Capital Group LLC, for the installation of solar electric systems on their facilities shown in the table below, in an amount not to exceed $2,142,861.70. 14. Recommend authorizing 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 $425,000. 15. Recommend authorizing negotiation and execution of a contract for software licensing, support, upgrades, and professional services with SSP Innovations, LLC, for up to five years for a total contract amount not to exceed $575,000. 16. Recommend authorizing negotiation and execution of three contracts for vegetation management around energized distribution lines with Asplundh Tree Expert LLC; Davey Tree Surgery Co, and Wright Tree Service, Inc, for up to 18 months for total contract amounts not to exceed $28,000,000. WORKING GROUP RECOMMENDATIONS 17. Report of recommendations by Resource Generation Plan Working Group. Resource Generation Plan Working Group Chair, Cyrus Reed, and Vice Chair, Kaiba White, presented the Working Group’s recommendations. Commissioner Benavides recused himself from Items 17, 20 and 21 due to his employment at LCRA. He is going to consult with Law to determine if he can vote on some part of the Resource Generation and Climate Plan. Commissioner Tuttle asked about a cash flow analysis and prioritization of cash and debt flow, including PPAs and capital investment stream. He wondered how Austin Energy would recommend such prioritization. Commissioner Reed hopes Austin Energy will provide the Plan to the EUC earlier than the posting deadline to allow for a thorough review and analysis. Commissioner Alvarez is interested in the costs associated with the recommendations. When do contracts and timing of the purchase of energy going to affect investing in energy. What do we have available to invest? STAFF BRIEFINGS   Director. 18. Staff briefing on the First Quarter Financial Report by Stephanie Koudelka, Finance The presentation was made by Stephanie Koudelka, Finance Director. 19. Staff briefing on the First Quarter Operations Report by Lisa Martin, Deputy General Manager and Chief Operating Officer. The presentation was made by Lisa Martin, Deputy General Manager and Chief Operating Officer. 20. Staff briefing on the Resource Generation, and Climate Plan by Lisa Martin, Deputy General Manager and Chief Operating Officer. The presentation was made by Lisa Martin, Deputy General Manager and Chief Operating Officer. DISCUSSION ITEMS 21. Discussion regarding the Resource Generation Plan Working Group recommendations. Commissioner Reed asked about the timeframe, if it was 2030 or 2035. Deputy General Manager Martin clarified that this was an update to the 2030 plan. Commissioner White and Chapman also requested the plan to be provided to the EUC earlier than the posting deadline. 22. Discussion of report regarding City Council action on items previously reviewed by the EUC. There was no discussion. WORKING GROUP UPDATE 23. Update from the Budget & Audit Working Group At the March meeting the EUC will be voting on Budget recommendations, so far they have the following:  CAP Discounts – increasing the default discount back to 15%; setting discount for CAP participants that also participate in community solar  Support for AE transmission upgrades  Recommendation against capital investments at FPP FUTURE AGENDA ITEMS Solar Standard Update Franchise Fees CAP Weatherization Resolution on behind the meter update ADJOURNMENT Chair Tuttle adjourned the meeting at 8:29 p.m. without objection.   The  minutes  were  approved  at  the  March  18,  2024  meeting  on  Commissioner  Blackburn’s  motion,  Commissioner  Chapman’s  second  on  a  (7‐0)  vote  with  Commissioner  Alvarez  off  the  dais  and  three  vacancies.