REGULAR MEETING OF THE RESOURCE MANAGEMENT COMMISSION March 25, 2025 6:00 p.m. Austin Energy Headquarters; 1st Floor; Shudde Fath Conference Room 4815 Mueller Blvd, Austin, Texas 78723 Some members of the Resource Management 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 Natasha Goodwin, at Natasha.Goodwin@austinenergy.com or 512-322-6505. AGENDA Raphael Schwartz Alison Silverstein Vacant GeNell Gary Joseph Gerland Martin Luecke Dino Sasaridis Members: Louis Stone, Chair Paul Robbins, Vice Chair Charlotte Davis Trey Farmer 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 Resource Management Commission Meeting on February 18, 2025. DISCUSSION ITEMS 2. Discussion of the sub-quorum meeting with AE staff regarding information request and future plans for District Cooling. 3. Presentation by Texas Gas Service regarding a quarterly update of the Central Texas Energy Efficiency Program by Christy Bell, Energy Efficiency Program Supervisor. 4. Discussion on natural gas utilities in Austin. DISCUSSION AND ACTION ITEMS 5. Recommend changes to Austin Energy’s Residential Rooftop Solar Program, with inclusion of energy storage batteries. 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 with wheelchair access. If requiring Sign Language Interpreters or alternative formats, please give notice at least 2 days (48 hours) before the meeting date. Please call Natasha Goodwin at Austin Energy, at (512) 322-6505 or email Natasha.Goodwin@austinenergy.com for additional information; TTY users route through Relay Texas at 711. For more information on the Resource Management Commission, please contact Natasha Goodwin at Austin Energy, at 512-322-6505 or email Natasha.Goodwin@austinenergy.com .
Central Texas Energy Efficiency Program Overview Christy Bell – Supervisor, EE Programs Texas Gas Service Energy Efficiency Program Q4 2024 Program Highlights Program sunset on December 31, 2024, Conservation Adjustment Clause tariffs were withdrawn, program surcharge removed from bills, and TGS will continue processing residential rebate requests through June 29, 2025 for work completed in 2024 Revisions made to TGS website to create awareness about program changes After June 29, 2025, TGS will begin work determining a balance adjustment to return unused funds back to customers 2 Energy Efficiency Program 3 Energy Efficiency Program Commercial Direct Install Rebates: Administered by Sink Aerators Low-Flow Showerheads Pre-Rinse Spray Valves Weather Stripping Steam Traps Dryer Smart Devices Overhead Door Weather Stripping 4 Texas Gas Service Energy Efficiency Program Commercial Program Highlights 5 Texas Gas Service Energy Efficiency Program Outreach Campaigns Austin Board of Realtors Print ad ran 10/1-10/31 Community Impact Ads Print ad ran 10/1-10/31 Digital ad ran 11/4-11/8 KUT/KUTX Radio Ads Radio campaign ran 10/1-12/9 6 Energy Efficiency Program Education & Outreach Events Dia de los Muertos - Nov. 1st Mueller Farmers Market - Oct. 20th & Nov. 3rd Community Connections Resource Fair - Oct. 26th Texas Book Festival booth shared with Austin Energy - Nov. 16th & 17th 7 Questions?
BOARD/COMMISSION RECOMMENDATION Resource Management Commission Resolution on Changes to Residential Rooftop Solar Rebate Program WHEREAS, streamlining Austin Energy’s Residential Solar program will reduce customers’ and installers’ cost and time necessary for solar and battery installation while reducing administrative overhead for Austin Energy (AE); and WHEREAS, given the reasonably expected large increase in AE load growth in the next few years, aggressively increasing energy efficiency measures, distributed energy resources, solar installations, and onsite energy-storage batteries are critical means to achieve the Austin Energy Resource Generation and Climate Protection Plan and advance local resilience; NOW, THEREFORE BE IT RESOLVED that the Resource Management Commission makes the following recommendations to the Austin City Council to modify AE’s rooftop solar program. 1. Streamlining Administration a. AE shall eliminate the solar education course and quiz, replacing it with a digital information flyer and engaging <5-minute video integrated into the solar and battery installation application process that contains the most useful information, such as an explanation of Value of Solar, how much yearly energy production to expect per panel, explanation of kW vs kWh, and other basic information. b. AE shall not condition rebate approval upon the customer’s current electricity usage. AE should require the contractor to provide values for expected usage and production to the customer. AE may warn the applying customer if proposed arrays exceed a certain percentage of the customer’s present electricity usage, to help the customer understand that they may be buying more solar and/or battery equipment than they may need. c. AE shall not place additional requirements on the installation or parts used other than those required by NFPA 70 National Electrical Code 2023. Exceptions: AE may require new components be purchased for the installation, and this requirement does not extend to the software configuration of said parts, I.e. export limits or grid operator control settings. 2. Consumer Protection a. AE shall specify a minimum set of 10-year warranty provisions (they must identify exactly what is included in the warranty) that every installer must offer to be eligible for the rebate list. Installers can offer other provisions beyond that minimum set. This is a consumer protection requirement which intends to eliminate the possibility of a security-blanket warranty, which may have loop-holes in the warranty. b. AE shall provide up-to-date interactive reference solar benchmark cost estimates for a few house types and roof scenarios to give customers a valid point of comparison …
BOARD/COMMISSION RECOMMENDATION Resource Management Commission Resolution on Changes to Residential Rooftop Solar Rebate Program WHEREAS, streamlining Austin Energy’s Residential Solar program will reduce customers’ and installers’ cost and time necessary for solar and battery installation while reducing administrative overhead for Austin Energy (AE); and WHEREAS, given the reasonably expected large increase in AE load growth in the next few years, aggressively increasing energy efficiency measures, distributed energy resources, solar installations, and onsite energy-storage batteries are critical means to achieve the Austin Energy Resource Generation and Climate Protection Plan and advance local resilience; NOW, THEREFORE BE IT RESOLVED that the Resource Management Commission makes the following recommendations to the Austin City Council to modify AE’s rooftop solar program and initiate a battery incentive program.. 1. Streamlining Administration a. AE shall eliminate the solar education course and quiz, replacing it with a digital information flyer and materialengaging <5-minute video integrated into the solar and battery installation application process that contains the most useful information, such as an explanation of Value of Solar, how much yearly energy production to expect per panel, explanation of kW vs kWh, and other basic information. b. B. AE shall not condition rebate approval upon the customer’s current electricity usage. AE should require the contractor to provide values for expected usage and production to the customer. AE may warn the applying customer if proposed arrays exceed a certain percentage of the customer’s present electricity usage, to help the customer understand that they may be buying more solar and/or battery equipment than they may need,. 1. A. c. C. AE shall not place additional requirements on the installation or parts used other than those coveredrequired by normal inspectionNFPA 70 National Electrical Code 2023. Exceptions: AE may require new components be purchased for the installation, and this requirement does not extend to the software configuration of said parts, I.e. export limits or grid operator control settings. 2. 2. Consumer Protection A. a. AE shall specify a minimum set of 10-year warranty provisions (they must identify exactly what is included in the warranty) that every contractorinstaller must offer to be eligible for the rebate list. Installers can offer other provisions beyond that minimum set. This is a consumer protection requirement which intends to eliminate the possibility of a security-blanket warranty, which may have loop-holes in the warranty. b. B. AE shall provide up-to-date interactive reference solar and battery benchmark cost estimates …
Gas Utility Briefing Resource Management Commission Paul Robbins March 25, 2025 On February 13, 2025, the Resource Management Commission’s purview was expanded to advise City Council: Regarding recommendations for the natural gas utility ratemaking, franchise agreement priorities, and operational policies for which the City has regulatory authority. Total Residential Gas Customers in Austin 2023: 230,870 Total Residential Austin Energy Customers in Austin 2023: 487,096 47% / Does Not Include Master-Metered Multifamily Units Census: Majority of Homeowners in Austin and Travis County Served by Gas Heat Majority of Renters in Austin and Travis County Served with Electric Heat Total Austin Gas Utility Revenue 2023: $204 million Total Residential Gas Utility Revenue 2023: $135 million 20% of Austin Energy’s 2023 Residential Revenue Carbon Footprint: 45% of Austin Energy Carbon Emissions TGS Service Territory Austin Atmos Service Territory Austin Reasons for High Cost of Texas Gas Service Texas Gas Service: $342 Million, 63% Plant Cost Increase in Only 4 Years But 5% Increase in Customers in Only 4 Years Unlike Austin Energy and Austin Water, City Council Was Not Allowed in Decisions on Whether to Allocate This Money $185 Million in New Infrastructure in 4 Years $4 Million in Developer Construction Fees Only 2% Collected From Capital Recovery Fees ( aka Contribution to Aid in Construction) Texas Gas Service Company, a Division of ONE Gas, Inc. (cid:18)(cid:39)(cid:94)(cid:4) ISOS RTCS TYE December 31, 202(cid:1007) Exhibit AL-1 Page 1 of 1 Central Texas Region Galveston Region Central Texas Region and Galveston Region Combined for Rates Over Austin’s Objections Central-Gulf Service Area Central-Gulf Service Area Rio Grande Valley Service Area Rio Grande Valley Service Area West-North Service Area West-North Service Area Gas Utility Regressive Rates in Texas The More You Use, the Less You Pay Per Unit of Energy • Discourages Energy Conservation • Punished Low-Income Ratepayers The More You Earn, the More You Burn From: Residential Energy Consumption Survey 2020 for Southern U.S. U.S. Energy Information Administration A Main Reason for Regressive Rates is High Monthly Customer Charge But it is Common to Have Lower Monthly Charges at Other Utilities Examples of Gas Utilities With Low Customer Charges 2025 Cascade Natural Gas Oregon Cascade Natural Gas Washington Citizens Energy Group Indiana Colorado Springs Utilities Colorado CPS Energy Texas DTE Energy Michigan Eversource Eastern Massachusetts Gainesville Regional Utilities Florida Memphis Light, Gas & Water Tennessee Pacific Gas and Electric California Piedmont Natural Gas North Carolina Piedmont …
A Resolution Summary Resolution on Changes to Residential Rooftop Solar Rebate Program D. SASARIDIS 25 MARCH 2025 Recall… Feb 3, 2025 – Commissioners Sasaridis, Silverstein, Robbins introduce “Resolution on Changes to Residential Rooftop Solar Rebate Program” – discussed proposed changes to policy, inspection, for both solar and batteries. Feb 18, 2025 – Tim Harvey presents Austin Energy perspective March 25, 2025 – Today – Presenting redlined version of “Resolution on Changes to Residential Rooftop Solar Rebate Program” What’s new in the redlined resolution? 1) All battery-related language removed to avoid potential commissioner interest conflict. 2) Edited to address commissioner & Austin Energy feedback from last meeting (Feb 18) Commissioners’ Feedback – Feb 18 Meeting “Excellent Presentation” Commissioner Gary “Why there is such a high fail rate? Why is there online inspection in other cities?” Vice Chair Robbins “110% rule – is it updated on the website?” Commissioner Schwartz “As a person who used to install these systems, I appreciate the safety concerns that you brought to this. I think people make mistakes on [getting] excited about getting the system and overdoing it sometimes or making mistakes, and I think it's important to really understand it before you go and do it. We are talking about a very complicated device, and there's a whole bunch of moving parts there.” Commissioner Leucke “And so that really helped me see that, particularly as it relates to protecting consumers from unscrupulous vendors. That was giving me pause in, in the resolution about taking away things that, might actually be protecting consumers.” Commissioner Davis Defining the problem Electrification of work previously done by hydrocarbons. Why Residential Matters - Solar at the edge of the grid Relieves constraint https://www.rff.org/publications/explainers/renewables-101-integrating-renewables/ Constraint What Success Looks Like – Australia https://pv-map.apvi.org.au/historical#7/-37.064/146.569 Austin Greater Adelaide Population 0.98 M 1.4 M Solar Penetration 6.6 % ~35 % Solar Cost $3 / W $ 1 / W Austin, TX- 103 MW / 10 kW avg install = 10.3k homes 10.3k / 155 k = 6.6% Sources: https://austinenergy.com/about/company-profile/electric-system/power-plants https://www.infoplease.com/us/census/texas/austin/housing-statistics Solar Equipment Costs are Plummeting Year Cents/W Q2 2023 Q3 2023 Q1 2024 Q3 2024 14.5 12.5 11 9.6 45% drop in <2 years! Source: BloombergNEF, NREL Solar as a Luxury Good Soft costs are high, material costs are low Cost increasing vicious cycle Legitimate installers have high overhead, so they must counter- position as the solution to bad actors, position solar as a luxury …
