EUC Report re Council Action February 12, 2024 Item 22 Item below recommended by EUC January 22; Council approved on date indicated in parenthesis. (2/1) 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. Item below not recommended by EUC January 22; Council approved on date indicated in parenthesis. (2/1) 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.
Item 2 ..Title P osting Language Authorize 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. [Note: This contract will be awarded in compliance with City Code Chapter 2-9A (Minority Owned and Women Owned Business Enterprise Procurement Program) through the achievements of Good Faith Efforts with 5.90% MBE and 1.63% WBE participation]. ..Body Lead Department Financial Services Department. Managing Department Austin Energy. Fiscal Note Funding is available in the Capital Budget of Austin Energy. Purchasing Language: The Financial Services Department issued an Invitation for Bids (IFB) 6100 CLMC989A for these goods and services. The solicitation issued on October 9, 2023, and closed on November 9, 2023. Of the four offers received, the recommended contractor submitted the lowest responsive offer. A complete solicitation package, including a tabulation of the bids 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: February 12, 2024 - To be reviewed by the Electric Utility Commission. Additional Backup Information: The North MoPac area is experiencing rapid growth with taller, denser developments that have utilized the substation capacity in this service area. The new Kramer Lane Substation will provide the substation capacity necessary to reliably serve new developments, and it will strengthen the distribution system in this part of the service area. This item includes one allowance. The allowance of $10,000 will be used to address traffic control plans. An allowance is an amount that is specified and included in the construction contract or specifications for a certain item(s) of work when details are not determined at the time of bidding. Due to the potential for unknown conditions, a 10% contingency has been included to allow for the expeditious processing of any change orders to cover any unforeseen construction costs associated with the project. The contract allows 150 calendar days for completion of this project. This project is located within zip code 78758 (District 7), which is inside the Austin city limits and Austin …
Item 17 EUC Resource Planning Working Group Recommendations for the “Austin Energy Resource, Generation and Climate Protection Plan to 2035” Clean and Carbon-Free Energy for an Affordable and Livable Austin Presentation to the Electric Utility Commission February 12, 2024 Cyrus Reed, Chair, EUC Resource Plan WG Kaiba White, Vice-Chair, EUC Resource Plan WG 1 Overview 1. Working Group Members & Process 2. Setting the Context for Recommendations a. City climate goal - net zero by 2040, w/ most reductions by 2030 b. High ERCOT prices and obligations c. Price separation d. e. f. Green hydrogen not ready Federal money available Local air pollution should be avoided 3. Our Preferred Resource Mix a. Demand Reduction First b. No Coal ASAP c. Reduced Gas (REACH), retire by 2035 d. e. f. g. Affordability Goal Future Studies & Process Solar and Renewables Expanded Storage EVs 4. 2 EUC Resource Planning Working Group Members EUC WG consisted of 16 Members: 5 from EUC, 4 from RMC and 7 additional Cyrus Reed Electric Utility Commission Christian Fogerty Sunrise Austin Kaiba White Electric Utility Commission Micalah Spenrath residential customer Dave Tuttle Electric Utility Commission Autumn Gallardo Foundation Communities Randy Chapman Electric Utility Commission Al Braden residential customer Mick Long Electric Utility Commission Rodrigo Leal Joint Sustainability Committee Alison Silverstein Resource Management Commission Paul Robbins Resource Management Commission GeNell Gary Resource Management Commission Melissa Caragati Resource Management Commission Jim Stanway Samsung Marian Sanchez PODER 3 EUC Workgroup Process ● WG analyzed 11 Austin Energy scenarios, 4 additional scenarios, separate presentations from associations and vendors, and made many requests for information from Austin Energy ● Presentations, resources, meeting notes and final recommendations and individual statements are posted here: https://austineucresourceplanningwg.org/ ● WG met 14 times between September 2023 to January 2024 and released recommendations on February 1st of Austin ● Final Product Released on Feb 1, 2024 endorsed by 14 of 16 members. ○ One member - Melissa Caragati - recused herself as she left the RMC to take a job with the City ○ One member - Jim Stanway - while supporting most of the recommendations offered a ○ dissenting opinion Two other members - Mick Long and Randy Chapman - signed the recommendations and also offered additional comments 4 Federal Funding Can Help City of Austin and AE Meet Climate Goals Two Federal Bills, the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) …
Cover Letter from EUC Resource Planning Working Group February 1, 2024 Process In December 2022, Austin City Council Resolution 20221201-040 directed Austin Energy to collaborate with the Electric Utility Commission to update the “Resource, Generation and Climate Protection Plan to 2030 (2030 Plan),” adopted by the Austin City Council in December of 2020. The 2030 Plan committed Austin Energy to continue safely delivering clean, affordable, and reliable energy sufficient to meet customer demands while pursuing the City of Austin's climate protection and sustainability goals. In August 2023, the Electric Utility Commission (EUC) created the Resource Planning Working Group (Working Group) to provide leadership and guidance to Austin Energy and the Austin City Council on technical and market issues to meet environmental, efficiency and affordability goals established by the Austin City Council. The 16-member Working Group1 included members of the EUC, members of the Resource Management Commission and several others who represented different elements of the Austin community. Members brought expertise on a variety of energy topics to this effort. The working met on 14 occasions between September 2023 and January 2024. The Working Group created a website for meeting notes, presentations, and materials. The Working Group examined the initial presentation by Austin Energy, the 11 resource portfolios modeled by Austin Energy, technology assessments from Austin Energy, staff responses to questions from the Working Group, and the results of four additional resource portfolios constructed by the Working Group and modeled by Austin Energy. Austin Energy presented those four additional scenarios on January 10, 2024. In addition, the Working Group received information and presentations on many of the technologies and issues relevant to the Plan, including batteries with various energy storage durations, hydrogen technology, geothermal energy, energy efficiency and demand response, renewable resources, the Fayette coal plant, transmission, regulatory changes, and new funding resources and tax incentives available under the federal Inflation Reduction Act. A Changing Landscape As Austin Energy has noted, many market conditions, opportunities and challenges have changed since the 2030 Plan was adopted by the Austin City Council in 2020. 1 One of the 16 working group members had to leave in early January because of a new job. Cover Letter from EUC Resource Planning Working Group 1 First, the costs of electricity have risen. Austin increased electricity base rates in 2022, particularly for residential customers, and has increased the Power Supply Adjustment (PSA) rate three times since the …
EUC Resource Planning Working Group Recommendations for the “Austin Energy Resource, Generation and Climate Protection Plan to 2035” Clean and Carbon-Free Energy for an Affordable and Livable Austin Presentation to the Electric Utility Commission February 12, 2024 Cyrus Reed, Chair, EUC Resource Plan WG Kaiba White, Vice-Chair, EUC Resource Plan WG 1 Overview 1. Working Group Members & Process 2. Setting the Context for Recommendations a. City climate goal - net zero by 2040, w/ most reductions by 2030 Federal money available Fayette current usage and emissions Local air pollution should be avoided b. c. d. 3. Our Preferred Resource Mix a. Demand Reduction First b. No Coal ASAP c. Reduced Gas (REACH), retire by 2035 d. e. f. Solar and Renewables Expanded Storage EVs and DERMS 4. Affordability Goal 5. Future Studies & Process 2 EUC Resource Planning Working Group Members EUC WG consisted of 16 Members: 5 from EUC, 4 from RMC and 7 additional Cyrus Reed Electric Utility Commission Christian Fogerty Sunrise Austin Kaiba White Electric Utility Commission Micalah Spenrath residential customer Dave Tuttle Electric Utility Commission Autumn Gallardo Foundation Communities Randy Chapman Electric Utility Commission Al Braden residential customer Mick Long Electric Utility Commission Rodrigo Leal Joint Sustainability Committee Alison Silverstein Resource Management Commission Paul Robbins Resource Management Commission GeNell Gary Resource Management Commission Melissa Caragati Resource Management Commission Jim Stanway Samsung Marian Sanchez PODER 3 EUC Workgroup Process ● WG analyzed 11 Austin Energy scenarios, 4 additional scenarios, separate presentations from associations and vendors, and made many requests for information from Austin Energy ● Presentations, resources, meeting notes and final recommendations and individual statements are posted here: https://austineucresourceplanningwg.org/ ● WG met 14 times between September 2023 to January 2024 and released recommendations on February 1st of Austin ● Final Product Released on Feb 1, 2024 endorsed by 14 of 16 members. ○ One member - Melissa Caragati - recused herself as she left the RMC to take a job with the City ○ One member - Jim Stanway - while supporting most of the recommendations offered a ○ dissenting opinion Two other members - Mick Long and Randy Chapman - signed the recommendations and also offered additional comments 4 Federal Funding Can Help City of Austin and AE Meet Climate Goals Two Federal Bills, the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) offer significant funding: ● Weatherization: $174 million (TDHCA) …
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 …
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 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 …
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 …
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 …
MEETING OF THE ELECTRIC UTILITY COMMISSION NOVEMBER 14, 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. 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 Karen Hadden Makenna Jonker 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 October 18, 2022. DISCUSSION AND POSSIBLE ACTION ON RECOMMENDATIONS 2. Recommend authorizing negotiation and execution of a contract with Camlin Inc to provide and install a system for monitoring the bushings on a power transformer at Sand Hill Energy Center, in an amount not to exceed $130,000. 3. Recommend authorizing award of a contract with PWR Storage Solutions, LLC d/b/a Power Storage Solutions to provide and install an uninterruptible power supply, stand- alone battery charger, and power conditioning transformer, in an amount not to exceed $120,000. 4. Recommend authorizing negotiation and execution of two multi-term contracts with Transworld Systems Inc. and I C System Inc. for collection services for delinquent utility accounts each for up to five years for total contract amounts not to exceed $3,000,000, divided between the contractors. 5. Recommend authorizing reimbursement of costs to Waller Creek Owner, LLC., for the service pipe connection to interconnect the Waller Building to the Austin Energy (AE) downtown District Cooling System in an amount not to exceed $2,308,703. 6. Recommend authorizing an amendment to a cooperative contract with Carahsoft Technology Corp. for continued ServiceNow products, services, and software, including maintenance and support, to increase the amount by $477,040 and to extend the term by four months, for a revised total contract amount not to exceed $7,632,090. 7. Recommend authorizing negotiation and execution of a …
Item 12 Draft Resolution on a Required Update to the Resource Plan Electric Utility Commission November 14, 2022 WHEREAS, the Electric Utility Commission has been given the important task of reviewing and advising the City Council on progress on the Austin Energy Resource, Generation and Climate Protection Plan to 2030; and WHEREAS, the Resource plan approved by City Council in 2020 includes a specific direction that the plan be updated in five years, unless conditions change warranting a need for a new update, stating “Austin Energy will conduct an update of this 2030 Plan in advance of its cost-of-service study in approximately five years from adoption of the 2030 Plan, or sooner if significant changes in technology or market conditions warrant. At the end of 2022 the EUC will decide whether there have been sufficient changes in circumstances that an interim update would be beneficial.”; and WHEREAS, the plan laid out a vision for ending Austin Energy’s use of power from the burning of coal by stating “Austin Energy will maintain its current target to cease operation of Austin Energy’s portion of the Fayette Power Project (FPP) coal plant by year-end 2022. Austin Energy will continue to recommend to the City Council the establishment of any cash reserves necessary to provide for that schedule.”; and WHEREAS, Austin Energy has not been able to meet this deadline of ceasing operation of Austin Energy’s portion of the Fayette Power Plant (FPP); WHEREAS, the 2020 Resource Plan required Austin Energy to conduct a transmission study to look at how to boost the use of storage and renewables both within our load zone and from imported clean energy from outside our load zone and that transmission study is expected to be completed and reviewed by staff by June 2023; and WHEREAS, since the plan was adopted by city council in 2020, other major changes have occurred, including impacts to the electric grid caused by Winter Storm Uri, and major changes implemented by both the Legislature and the Public Utility Commission of Texas which have and could further change our energy-only market and required ancillary services; and WHEREAS, the Public Utility Commission is expected to take further action in early 2023 that could fundamentally change our energy and ancillary services market; and WHEREAS, the cost of natural gas increased by roughly 288 percent between August of 2020 and August of 2022, creating both major expenses …
Resolution on Value of Solar Tariff in Austin Energy Rate Case Electric Utility Commission November 14, 2022 WHEREAS, the Electric Utility Commission has been given the important task of reviewing and advising the City Council on the Austin Energy’s proposed changes to base rates; and WHEREAS, the Austin Energy Resource, Generation and Climate Protection Plan to 2030 and the Austin Climate Equity plan, both adopted by Council, include goals for increasing the use of local customer-sited solar energy in order to reduce greenhouse gas emissions and other pollution, improve resilience, and keep bills affordable; and WHEREAS, Austin Energy has proposed important changes to the Value of Solar tariffs as part of its base rate that could impact these goals; WHEREAS, the Value of Solar tariff is essential for facilitating the continued use of local customer-site solar energy; and WHEREAS, it is important for the Value of Solar tariff to accurately compensate customers with on-site solar energy for the energy they produce, and to provide a rate that isn’t too volatile, in order to attract investment in customer-sited solar; and WHEREAS, if a portion of the Value of Solar fee is paid for by the Energy Efficiency Fee instead of the Power Supply Adjustment fee, then some customers will be exempted from their fair share of the costs since they are exempted from the Energy Efficiency Fee, creating the potential for a cross-subsidy; WHEREAS, the Impartial Hearings Examiner found that while Austin Energy’s proposed changes were reasonable, they also urged better consultation with stakeholders going forward; NOW THEREFORE BE IT RESOLVED that the Electric Utility Commission recommends that the Austin City Council do the following when adopting the updated Value of Solar tariff as part of Austin Energy’s base rate package: 1. Adopt Austin Energy’s Value of Solar rate and methodology as proposed in its Base Rate Filing Package and as adopted by the Impartial Hearing Examiner in his Final Recommendation, with the exception that Value of Solar Societal Benefits should continue to be collected through the PSA. 2. Base the avoided costs of the Value of Solar rate on a rolling five-year average, and conduct the Value of Solar avoided cost assessment annually but require Austin Energy to change the rate not more frequently than every three years based on a rolling five-year average of avoided costs. 3. Direct Austin Energy to hire a qualified third party, with experience in …
Resolution of the Electric Utility Commission on Austin Energy’s Base Rate Proposal November 14, 2022 WHEREAS the Electric Utility Commission has been given the important task of reviewing proposed modifications to Austin Energy’s base rates; WHEREAS, Austin Energy released their proposed base rate package in April of 2022, proposing a significant increase on several customer classes, including residential and small business customers; WHEREAS, a base rate proceeding was recently concluded before an Independent Hearings Examiner with filings of exceptions and briefs by some 10 parties to the Austin Energy base rate proceedings; WHEREAS, Austin Energy’s initial proposal would raise revenues and rates by approximately $48 million, a proposal that was reduced by approximately $13 million due to changes made by Austin Energy in the course of the proceeding, meaning the current Austin Energy proposal is to raise rates by approximately $35.7 million; WHEREAS, the Independent Hearings Examiner has recommended a smaller revenue requirement of approximately $31.3 million, but also indicated a need to look at differential sales during the unique year of 2021 which might lower that recommended revenue requirement substantially; WHEREAS, the Independent Consumer Advocate hired by the City has instead proposed a much smaller revenue increase of approximately $6.5 million, with a much smaller impact on residential consumers; WHEREAS, multiple parties including the IHE itself have raised concerns that Austin Energy’s proposed residential rate design - which would increase the fixed monthly fee from $10 to $25 and flatten the incentive to conserve energy by reducing the number of tiers from 5 to 3 is a significant change to our residential rate design and could represent a shock to Austin Energy residential consumers, particularly those that are not protected by CAP; WHEREAS, multiple parties have identified other potential savings that could reduce the revenue requirement significantly, including adjustments to recognize the uniqueness of the test year, which included both a major winter storm and a pandemic; WHEREAS, the rising costs of shelter combined with rising utility costs most heavily impact those households with the lowest incomes and the thousands of eligible families that are not presently receiving CAP program benefits, WHEREAS, the Austin City Council just approved new tariffs for the Power Supply Adjustment, Regulatory Charge and CBC, which collectively will increase the average residential bill by some $15 per month over current charges, and adoption of the Austin Energy proposal could increase overall residential bills by at …
Item 10 Electric Utility Commission 2023 Meeting Schedule The Electric Utility Commission meets monthly on the second Monday of the month, unless otherwise determined by the Commission. If the regular meeting day conflicts with a holiday, the meeting will be held on the following Monday. Meetings are held at 6:00 p.m. in the Shudde Fath Conference Room at Austin Energy HQ, 4815 Mueller Blvd. Changes to the above regarding date, time or location will be noted on meeting agendas. MEETING DATES January 9, 2023 February 13, 2023 March 21, 2022 April 10, 2023 May 8, 2023 June 12, 2022 July 10, 2023 August 14, 2023 September 11, 2023 October 16, 2023 November 13, 2023 CANCELLED DATES March 13, 2023* October 9, 2023** December 11, 2023 *AISD/UT/etc. Spring Break **Columbus/Indigenous Peoples Day
EUC Report re Council Action November 14, 2022 Item 13 Items below recommended by EUC October 17; Council approved on date indicated in parenthesis. 2. (10/27) Recommend authorizing negotiation and execution of a multi-term cooperative contract with SHI-GOVERNMENT SOLUTIONS Inc, to provide Novell SUSE software maintenance and support for up to three years for a total contract amount not to exceed $495,000. 3. (10/27) Recommend approving issuance of a five-year production-based incentive (PBI) to Paloma Ridge Owner, LLC, for the installation of solar electric systems on their facility located at 13620 N FM 620 Rd, Austin, TX 78717, in an amount not to exceed $2,041,981. 4. (11/3) Recommend authorizing negotiation and execution of a contract with Texas AirSystems, LLC for modular heat exchanger skids, for a term of five years in an amount not to exceed $25,000,000. 5. (11/3) Recommend authorizing negotiation and execution of a contract with Thielsch Engineering Inc. for power production maintenance, for a term of five years in an amount not to exceed $20,000,000.
