Item 12 - Briefing: Austin Energy’s Electric System Reliability Plan — original pdf

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Austin Energy’s Electric System Resiliency Plan (ESRP) Lisa Martin Deputy General Manager & Chief Operating Officer November 2025 © Austin Energy Item 12Agenda I. Background • What is an Electric System Resiliency Plan • Goals II. Development • Community Input • Decision Framework III. Plan • Investment Areas • Operational Plan • Investment Forecast IV. Next Steps Why Are We Here? Building a stronger, smarter and more reliable electric system for Austin Overhead Resiliency Study Undergrounding Study | March 2025 Consultant Delivered Overhead Resiliency Study | July 2025 Consultant Delivered Develop Electric System Resiliency Plan Use both studies, further analysis and stakeholder engagement to inform near- and long-term priorities Underground Feasibility Study Electric System Resiliency Plan Existing Reliability Programs 3 Undergrounding & Overhead Study Takeaways $50 billion to underground all the remaining 5,000 miles of distribution lines Undergrounding Risks: Environmental/Cultural Easements Rocky Soil Acquiring Telecom Relocation Critical Root Zones Dense Vegetation Recommended Austin Energy develop a strategic approach to undergrounding Overhead hardening implementation is faster, less expensive and provides similar resiliency benefits Develop an Electric System Resiliency Plan focused on overhead hardening and advanced technologies What is an Electric System Resiliency Plan? ESRP Keeping the power on, even when it’s tough An ESRP helps ensure a power grid can: • Withstand extreme weather like storms, heatwaves, winter storms, and floods • Recover quickly from outages and emergencies • Adapt to future challenges like climate change and growing energy demand Austin Energy’s Electric System Resiliency Plan A bold, integrated and forward-looking strategy to modernize and harden our electric distribution system over the next decade Austin’s ESRP Goals • Reduce outage frequency and duration • • Prioritize investments that deliver the highest customer value Enhance the grid for bi-directional energy flows to better enable distributed energy resources • Adopt a strategic and robust approach to hardening our system so we can achieve greater impact in less time 6 Stakeholder Feedback In-Person and Virtual 7 What We Heard from Our Community Equity & Geographic Considerations Communication & Transparency Wildfire Mitigation & Vegetation Management Community Feedback: Equitable improvements across all Austin neighborhoods Community Feedback: Public-facing progress tracker and clear upgrade timelines Plan Alignment: Data-driven prioritization to target investments equitably Plan Alignment: Transparent reporting, and accessible project timelines Community Feedback: Proactive trimming, maintenance and ecological sensitivity Plan Alignment: Expands vegetation management, using risk-based standards and environmental best practices 8 Decision Framework Data Driven Criteria 1 Reliability Impact Does it improve and sustain reliability metrics? 2 Resiliency Contribution Does it strengthen the grid’s ability to withstand and recover from disruptions? 4 Customer-Centric Value Does it equitably improve the customer experience? 5 Affordability Does it align with Austin Energy’s affordability goals? 3 6 Efficiency of Assets Does it provide the biggest impact for the most customers? Flexibility & Capacity Does it support integration of distributed resources & dynamic load management? 9 What Investments Make the Most Sense? Investment Area Description Benefits Circuit Hardening Upgrades to vulnerable circuits with modern materials Sectionalization & Automation Smart devices for grid segmentation and fault isolation Fewer outages; better storm resilience Faster restoration; reduced outage impact Intelligent Systems Smarter grid operations due to upgrades to Advanced Metering Infrastructure, Advanced Distribution Management System, and Remote Terminal Units Improved control and outage response Grid Analytics Real-time and predictive data for planning Smarter investments; better asset management Wildfire Mitigation Fire-resistant upgrades in high-risk areas Lower ignition risk; enhanced safety Vegetation Management Risk-based trimming aligned with grid hardening Fewer vegetation outages; supports fire prevention Pole Inspection Drone and thermal scans for aging infrastructure Early risk detection; fewer emergency repairs 10 10-Year Electric System Resiliency Plan FY26 FY27 FY28-35 Foundation & Launch Scaling & Optimizing Execution through Maturity • Harden 20 circuits • Inspect 8,000 poles • Deploy 30 main line reclosers & 100 lateral reclosers • Continue Remote Terminal Unit (RTU) replacements • Align vegetation management with risk & hardening • Harden 40 circuits • Inspect 15,000 poles • Deploy 40 mainline reclosers & 100 lateral reclosers • Begin FLISR — Fault Location, Isolation & Service Restoration • Launch Distributed Energy Resource (DER) intake platform • Establish governance & dashboards • Expand vault monitoring • Continue vegetation management • Automate reliability reporting • Continue all circuit upgrades • Complete open wire replacement & switchgear upgrades • Full FLISR — Fault Location, Isolation & Service Restoration — & lateral recloser deployment • Complete Remote Terminal Unit (RTU) replacements • Complete Advanced Distribution Management System upgrades • Continue vegetation management This is a living plan, subject to change with lessons learned and as technology evolves 11 10-Year Investments • Capital strategy aligned with resilience priorities • Phased investments allow for flexibility and scalability Initial Budget Forecast (FY26 – FY35) Vegetation Management $340 million Grid Hardening & Automation $280 million Smart Grid Upgrades 10-Year Forecast $115 million $735 million 12 Risk Mitigation Risk Area Mitigation Strategy Supply Chain • Secure long-term, fixed-price contracts • Continue procurement and inventory planning Budget & Funding • Phase investments strategically • Align with grant opportunities and internal capital Resourcing • Use a mix of full-time employees and contractors • Focus on cross-training, retention, and partnerships State Regulatory Changes • Participate in Public Utility Commission rulemakings on pole standards and pole maintenance plan as required by new state laws (SB 1789 and HB 144) Advancing Austin’s ESRP Electric System Resiliency Plan Where We’ve Been: Planning Phase • Completed the Underground Feasibility and Overhead Hardening Study • Defined strategic priorities and focus areas • Assessed system vulnerabilities and community risks • Developed initial roadmap and investment scenarios • Engaged stakeholders Advancing Austin’s ESRP Electric System Resiliency Plan Where We’re Going: Action Phase • Mobilize Projects: Launch FY26 initiatives with clear scope and timelines • Track Progress: Establish KPIs and dashboards for transparency • Coordinate Resources: Align staffing, contractors, and materials • Adapt & Improve: Use analytics and feedback to refine execution Customer Driven. Community Focused. ©Austin Energy. All rights reserved. Austin Energy and the Austin Energy 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.