Item 2- Briefing Base Battery Agreement Overview — original pdf

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Base Battery Storage Agreement Overview Resource Management Commission Pat Sweeney Interim Vice President Market Operations & Resource Planning October 20, 2026 © Austin Energy Base Power Agreement Adds to Austin Energy’s Distributed Battery Portfolio Key Aspects • • Sourced from Request for Proposal issued in 2025 Agreement approved by City Council April 23, 2026 • Wholesale battery storage agreement for up to 40 MW • • • • 10-year agreement – about $4 million per year Multi-location, distribution voltage connections versus a large single site, high-voltage transmission connection Provides wholesale cost risk management to the Austin Energy Load Zone Contributes to the 125 MW local battery storage goal in the Resource, Generation and Climate Protection Plan to 2035 2 Customer Engagement • Base is responsible for acquiring customers and contracts with them to install and maintain the batteries. • Austin Energy is not a party to those agreements, nor does it direct Base to specific areas or customers. • Each battery system is installed in front of the meter – meaning the customer’s Austin Energy bill will not be impacted. 3 Deployment • 2,000 – 2,500 installations at participating customers’ locations • Portfolio will ramp up to 40MW over 18 months – installations began in summer 2026 • Participating customers have a portion of the battery reserved for their use if an outage occurs • Austin Energy is paying for and has full use of the other portion of the battery • Detailed information for Base at basepowercompany.com/austinenergy 4 Usage • Austin Energy has operational control over its portion of the battery, including timing and rate of discharge and recharge • Discharge / charge duration of 1.5 hours at max rate of 40MW Austin Energy customer benefits Price Arbitrage Coincident Peak Reduction ERCOT Aggregation Charging at low prices and discharging during high prices Discharging during Coincident Peak periods (4 or 12 CP) ‘reduces’ Austin Energy Load Zone demand and therefore what we pay for Transmission Cost of Service (TCOS) All or some of the portfolio may be sold to ERCOT for certain wholesale services that it may qualify for, such as Non-Spin, Emergency Response and others 5 Future Benefits for All Customers • Operation of the Base battery portfolio will generate benefits for all Austin Energy customers not just those participating with Base • Austin Energy will use the portfolio as a learning platform to inform the strategy for its upcoming utility scale batteries • Austin Energy will consider how additional distributed battery resources could provide benefits, whether through increased scale and / or targeted placements focused on grid resiliency 6 Austin Bee Cave Cedar Park Creedmoor Del Valle Lakeway Pflugerville Rollingwood Sunset Valley Village of the Hills Westlake Hills Austin Energy Service Area Shared Service Area Austin City Limits Travis County 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.