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HomeMy WebLinkAboutMinutes_GTEU_06.18.2025Minutes of the Electric Utility Advisory Board City of Georgetown,, Texas Thursday, June 18, 2025 assistance, adaptations, or accommodation will be provided upon request. Please contact the City Secretary's Office at least three (3) days prior to the scheduled meeting date, at (512) 930-3652 or City Hall at 808 Martin Luther King, Jr Street for additional information; TTY users route through Relay Texas at 711. The following Members were in attendance: Present were: Sammy R Jones, Mike Triggs, Benjamin H Butler, Laura Klein Plunkett. Public Wishing to Address an Advisory Board table at the entrance to the meeting room. Clearly print your name and the letter of the item on which you wish to speak and present it to the Board Liaison prior to the start of the meeting. You will be called forward to speak when the Board considers that item. Only persons who have delivered the speaker form prior to the meeting being called to order may speak. Speakers will be allowed up to three minutes to speak. If you wish to speak for six minutes, it is permissible to use another requestor's granted me to speak. No more than six minutes for a at the meeting. ,tFr-F(#FF L41 Vf-t-1;!f-J'LF1C d&C111d IN L1115 111C, P. ,%CdNCI ZT111 XC L cc I L Board or Commission members. No action can be taken at this meeting. Call to Order Comments from the Chair Announcements 1. Regular Session I.A. Approval of Minutes Consideration and approval of the May 15, 2025, minutes -- Ren6 Bywater- Ba rajas, Board Liaison Moved by Laura Klein Plunkett; seconded by Sammy R Jones to approve the May 15, 2025, minutes. Motion Approved: 4 — 0 Voting For: Sammy R Jones, Mike Triggs, Benjamin H Butler, Laura Klein Plunkett Voting Against: None 1.B. Electric Monthly Operating Report Discussion regarding the Electric Monthly Operations Report -- Daniel Bethapudi, Electric Utility General Manager Electric Utility Advisory Board Meeting Minutes - June 18, 2025 Page 1 of 6 Before initiating the safety update, Mr. Potter outlined upcoming dates. Vice Chair Benjamin H. Butler announced that he would be unable to attend the next Electric Utility Advisory Meeting scheduled for July 17, 2025. Following this, Mr. Potter introduced his safety topic, focusing on confined space electrical work. Mr. Butler shared positive feedback on the training related to his own experiences in confined spaces, emphasizing tWe sog-imfica,-ice of this tir;.-i-i4q. 14r. Potter co-ifiriil tkat co-t&e4 sUace training, is offer "Alm, 1FJ 214-M L=1!11� Mr. Potter introduced Jon Franz, Electric Journeyman Lineman, and Ernest Quintanilla, Electric Meter Journeyman, both recent graduates of the Engaged Leaders Program. They shared their insights about the program with the board. Daniel Bethapudi, Electric Utility ff,ff76FtYrdf1(§_f_d_ ill I �1) r e T1r13WW_1JTTTdfrTfeff being recognized as one of North America's Top 50 Economic Developers for 2025 by Consultant Connect. David Morgan, City Manager, further lauded Mr. Goodman, noting that economic development involves more than just incentives; it requires tracking investments and providing outstanding services to foster a desirable living and working environment for the City of Georgetown. In addition, Mr. Bethapudi congratulated Mr. Morgan on receiving the Texas City Management Association's City Administrator of the Year award. i Board Agenda Posting Dates — Ren6 Bywater-Barajas, Electric Utility Advisory Board Liaison i 6ywater-barajas intormed the board that the recently signed -1 exas Legislature Mouse Bill HB1522 will now require meeting notices to be posted a minimum of three business days in advance. She also clarified that the existing posting schedule adhered to by the Electric Utility already meets this requirement, meaning no alterations to the board Rq1TT0MrWTr4MZ1� Before Ms. Hernandez commenced her presentation on the Customer Service Report, WM Chair, Benjamin H. Butler, inquired about the change in the format of the customer statistics, expressing his preference to see a comparison of numbers from the previous month alongside the current month's data. Additionally, Chair Member Sammy R. Jones requested a continuation of this format, along with peak load information for review, comparing it by month and year. Daniel Bethapudi, Electric Utility General Manager, confirmed that this data would be revised and presented again at the next board meeting. i iffiliffill 1111T ill 111 1 � I o Mr. Butler raised a question regarding the manually totaled data for large industrial customers. Both Ms. Hernandez and Mr. Bethapudi clarified what the data represented and how it was calculated monthly, assuring that it would be revisited next month. Kress Carson, Electric Business Operations Supervisor, also confirmed Electric Utility Advisory Board Meeting Minutes -June 18, 2025 Page 2 of 6 anoreciatev -.oal vi tWe data oreseitatio-i� lir. Butle b Mr. Butler inquired about the comparison of the Aged Receivables Report data between the active and inactive reports. Ms. Hernandez anticipated his question, noting that it likely related to the "N/A" designation in the inactive accounts customer counts for April 2025 and the Variance columns. She explained that clut to an error in last month's data calculation, it was appropriate to cite "not applicable" since the data could not be recaptured. b Mr. Butler sought confirmation regarding the Collection Agency Review data, specifically why the slide included March and April 2025 data while they were reviewing May 2025 data. Ms. Hernandez clarified that collection agency data consistently displays figures one month prior to the current month. Mr. Bethapudi added that they focus on sending collection requests for inactive accounts rather than active ones. Additionally, some bills may be fully paid or partially paid, as payment assistance is offered. Therefore, the aged receivables data would not fully align with the collection agency review, as they are based on different clatasets. Mr. Bethapudi further noted that it is typically not the regular residents who are behind on payments, but rather builders and developers. Ms. Hernandez affirmed that the City of Georgetown Utility team has begun collaborating with the permitting and planning department; if new services are requested while there are outstanding bills, payment must be settled before proceeding with future projects. achieving a reduction in delinquent payments. Chair Member, Laura Klein Plunket, asked whether builders and developers have been submitting new projects under different names to avoid paying outstanding utility bills. Ms. Hernandez responded that some attempted to bypass this by consulting different staff members across various departments for alternative answers. However, through teamwork among departments, they have successful,, ensured accountability for outstanding payments. I AA W-M i a N I R I F i t I Went N - offla-Ral W-11 4- - I .. i W"MaIRM = - P, a-ul I I (-FI-F"VFe-Y,-Tr I 0-F-14", - III A I FITI YI eTS Iver the past two years, close attention has been given to larger accounts. Chair Member, Sammy R Jones, also noted the distinction between peak loads for residential homes and larger buildings, such as anartmpnt-s,-w-o.L-Ld-b�e-Lp��-e-v.Lei%ft, the data. Mr. Bethapudi assured the board that peak loads would be presented later in the session. he shared an updated tally of the completed streetlights project. Mr. Westbrook affirmed that the streetlight map and reporting have been highly successful. There were no questions raised during the presentation. Electric Utility Advisory Board Meeting Minutes - June 18, 2025 Page 3 of 6 Manager Safety and Employee Development Report — Daniel Potter, Electric Safety Program Manager training hours for Electric staff, the total number of inspections completed for the month, and the incident rates. The board praised the department for achieving 1,130 days without an OSHA lost time incident and 850 days without an OSHA recordable incident. There were no questions raised. Georgetown Utilities Revenue Bond Rating Increase — Leigh Wallace, Chief Financial Off icer -UP rr r f . CT F�A-ot- Tr-d-ff both utilities as a single entity, evaluating their overall financial management. Three weeks ago, this led to securing a 4.4% interest rate for capital improvement projects, saving an estimated $800,000, for the City. Rating agencies highlighted the City's strong financial performance, diverse revenue streams, and proactive management, particularly noting growth and market volatility. The Water utility planned over $1 billion in capital improvements in the next five years, emphasizing the need for solid financial strategies for both utilities. Although rated together, efforts are made to maintain separate metrics. Historically, the Water fund h shown stronger metrics, prompting efforts to bolster the Electric utility. The next step includes considering an Electric rate increase for FY2026. Mr. Morgan praised the team for their financial management, and Mr. Bethapudi noted that only 7 utilities in Texas received such rating upgrades, highlighting the city's effective growth management. Ms. Wallace also credited Electric Utility staff member, Michael Simpson, Energy Market Portfolio Analyst, on his hard work on the project. I.C. Electric Utility Revenue Sufficiency Analysis — Daniel Bethapudi, General Manager of Electric Utility related rate impacts for FY2026. He explained that the information shared in the presentation encompasses the overall planning process and the various factors involved in the rate review. Before diving in, I want to note that we have conducted numerous budget reviews in recent months. Mr. Bethapudi guided the board through the slides, addressing the financial metrics 2nd forecasting models utilized in the review process, which considered load, sales revenue, capital contributions, and expenses, including purchase power and operating costs. electric rate changes since 2000, highlighting that the last adjustments across all rate classes occurred in January 2019. Mr. Bethapuit: mentioned that this information will be presented to the City Council on June 24, 2025. Chair Member, Laura Klein Plunket, inquired about the 2030 known and unknown load which are estimated to be 48% of the overall load. She also questioned how one could project the unknown large load while discounting the known large load. Mr. Bethapudil Electric Utility Advisory Board Meeting Minutes - June 18, 2025 Page 4 of 6 ponded that they have adopted a conservative estimate of 7-10 MWh per year. He noted that this a.oYeroach is �,p uite conservative when com..-p ared to other ut Airoject up to 20 MWh per year. Chair Member, Mike Triggs, sought clarification on whether the conservative approach pertains to load measured in MWh, noting that it tends to be high more frequently. Mr. Bethapudi confirmed this, adding that the risks fall into 3 areas with the primary risk to large loads lies in infrastructure costs. He explained that in some utilities, infrastructure is provided at no cost, meaning that when the expected load does not materialize, someone ultimately bears the expense. To mitigate this risk, the City mandates that 70-80% of the infrastructure costs be covered. The second risk involves energy consumption. For instance, a subdivision of 200 homes might require 4-5 MWh, while larger load customers could demand between 20-40 MWh. The enery Mr. Butler asked about the Very Large Load Rate Rider, expressing concerns about the expectation of stable rates over the five-year span given that costs could vary due to several factors. In reply, Mr. Bethapudi clarified that the forecasting model used for the Very Large Load Rate Rider considers forward curves with expectations for slight increases and confirmed that the City Council confirmed Very Large Load Rate Rider previously. Mr. Bethapudi further stated that one of the main reasons large loads want to come to G R-OW-WF Ur--2 QQAtQ4S-234 QJIWI,�H_ We cannot use up the capacity for the large loads and expect the residents to pay for it, that is why the Council approved the planning investment fee. This helps us to meet the financial needs for the City. i Mr. Butler inquired about the meaning of "transfer outs" on the Expense Forecast Operating slide, observing that their increase is more rapid compared to total expenses. Mr. Bethapudi and Mr. Morgan clarified that these refer to expenses related to load and sales, including significant loads. Additionally, Mr. Butler requested clarification regarding the "allocations" item. Mr. Morgan and Mr. Bethapudi confirmed that allocations pertain joint service costs, such as IT, finance, HR, and legal services. I Mr. Butler sought further insight, highlighting that "transfer outs" are projected to rise from $11 million in FY2026 to $20 million in FY2030, while total expenses are expected to increase from $30 million to $48 million. This growth is linked to load sales. Mr. Morgan stated that each service in Georgetown reports high figures, with varying forecasts influenced by different factors. Mr. Bethapudi pointed out that Georgetown's expenses are nearly double those of Austin U-16MMI alignment. In relation to the data showing the effects on residential and small general rate classes, Mr. Butler inquired about the rationale behind the variance in rates concerning the Power Cost Adjustment (PCA). He noted the difference between the 1.5% increase, which results in a PCA of $0.01375, and the 2% increase, which equals $0.01. Both Mr. Bethapudi and Mr. Electric Utility Advisory Board Meeting Minutes- June 18, 2025 Page 5 of 6 Morgan clarified that they are indeed the same, explaining that the table rounded the figure in the 2% column. 0 During the discussion regarding the final recommendations, Mr. Butler raised a questio about how the model accounts for the volatility of natural gas prices, highlighting recen fluctuations. In response, Mr. Bethapudi explained that to improve forecasting accurac they incorporate forward curves from other entities, emphasizing the dynamics of supp and demand. Mr. Butler also inquired whether the City suggests a rate increase of 1.5% or Bethapudi confirmed that the recommendation is for a 2% increase. Mr. Morgan remarked mid -year. He emphasized the necessity of planning for the City's requirements while remaining competitive. Given the increasing costs and the City's expansion, an increase is indeed well-timed. MsWallace voiced her concerns regarding the total sa es revenue table, noting a tren where larger loads are generating a greater share of revenue. She highlighted that this concentration among the tor) five customers Uoses gote-itial ris�s. A,4�ressi-i.,%Jkese rffis�.s 1� crucial for maintaining the utility's ratings, and therefore, an increase in the rate is supported. The board expressed their support for the plan following the discussion regarding the 2 rate increase. There were no further questions raised. i 2. Executive Session In compliance with the Open Meetings Act, Chapter 551, Texas Government Code, Vernon's Codes Annotated, the items listed below will be discussed in closed session and are subject to action in t�e regular session. 2.A. Competitive Matters Purchased Power Review Sec. 551.086 Competitive Matters Purchased Power Review 2. B. Cybersecurity Update Sec. 551.089 Deliberation Regarding Security Devises or Security Audits Adjournment Chair MovAAN,; Sa mm�; R Jones' Seco rided-b,,4,�.. Q��4&�, Motion Approved: 4 — 0 Voting For: Sammy R Jones, Mike Triggs, Benjamin H Butler, Laura Klein Plunkett Voting Against: None ET =- Electric Utility A visory Boar Meeting Minutes � June 18, 2025 Page 6 of 6